RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/10 
30 May 2006 
 (06-2601) 
Working Party on the 
Accession of Montenegro Original:   English 
 
 
  
ACCESSION OF MONTENEGRO 
 
Additional Questions and Replies
 
 
 The following submission, dated 12 May 2006, is  being circulated at the request of the 
Delegation of the Republic of Montenegro.  
_______________ 
 
    WT/ACC/CGR/10 
 Page i 
 
 
  TABLE OF CONTENTS 
 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................1  
2. Economic Policies.............................................................................................................. ........1  
(a) Main directions of the on going economic policies..................................................................1  
(b) Monetary and fiscal policies................................................................................................... ..3 
(c)  Foreign exchange and payments system .................................................................................4  
(d) Foreign and domestic in vestment policies ..............................................................................4  
(e) Competition policies........................................................................................................... .......6  
(f) Privatisation policies......................................................................................................... ........6  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................7  
2.  Government entities responsible for maki ng and implementing policies affecting 
foreign trade .................................................................................................................. ............7  
3. Division of authority between central and sub-central governments...................................8  
4.  Any legislative programmes or plans to change the regulatory regime.............................10  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................11  
1. Import Regulation.............................................................................................................. .....11  
(a) Registration requirements for engaging in importing.........................................................11  
(b) Characteristics of National Tariff .........................................................................................13  
(c) Tariff quotas, tariff exemptions.............................................................................................14  
(d)  Other duties and charges, specifying any charges for services rendered ..........................15  
(e) Import prohibitions ............................................................................................................ ....16  
(f) Import licensing procedures ..................................................................................................17  
(g)  Other border  measures.......................................................................................................... .23 
(h) Customs valuation.............................................................................................................. .....25  
(l) Rules of origin ................................................................................................................ .........26  
2.  Export Regulation.............................................................................................................. .....26  
(c) Export quotas .................................................................................................................. ........26  
3. Internal policies affecting foreign trade in goods.................................................................27  
(a)  Industrial policy, including subsidy policies.........................................................................27  
(b)  Technical regulations and standards ....................................................................................27  
(c) Sanitary and phytosanitary measures...................................................................................28  
(e) State-trading practices........................................................................................................ ....31  
(g) Free economic zones ............................................................................................................ ...31 
(l)  Government procur ement practices......................................................................................32  
4. Policies affecting foreign trade in agricultural products.....................................................33  WT/ACC/CGR/10 
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  (a)
 Imports........................................................................................................................ .............33  
(e)   Internal policies.............................................................................................................. .........34  
5.  Policies affecting foreign trade in other sectors ...................................................................35  
(b)  Policies affecting foreign trad e in other major sectors........................................................35  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................35  
1. General........................................................................................................................ .............35  
(b) Responsible agencies for policy formulation and implementation .....................................35  
(c) Membership of international intellectua l property conventions and of regional 
or bilatera l agreements........................................................................................................ ...36 
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................37  
(c) Geographical indications, including appellations of origin.................................................37  
(h) Requirements on undisclosed information, including trade secrets and test data............37  
4. Enforcement .................................................................................................................... ........38  
(a) Civil judicial procedures and remedies.................................................................................38  
VI.  TRADE-RELATED SE RVICES REGIME .........................................................................39  
1.  General........................................................................................................................ .............39  
 
  WT/ACC/CGR/10 
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  II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
2. Economic Policies (a) Main directions of the ongoing economic policies - Pricing policies Question 1 
In response to Question 1 of WT/ACC/CGR/7, Mo ntenegro has explained that postal services 
are the only services currently subject to price control.  In response to Question 2 of 
WT/ACC/CGR/7, Montenegro explains that the government has the authority to impose prices 
on "construction, road transport, insurance,  higher education and research, publishing, (except 
local newspapers), radio and TV stations (state owned), health and social care, and banking." 
Under what circumstances does or would Monten egro impose price controls on these other 
services? 
Answer
: 
None.  Montenegro has abolished the Law on Social Price Control, which formerly provided authority 
for such controls. 
Question 2 Also in response to Question 2 of WT/ACC/CGR/7 Montenegro noted that the only medicines 
covered by price controls are th ose from the health fund.  Coul d Montenegro please provide the 
Working Party with a list of those medicines?  How will Montenegro ensure that price controls 
will not be applied in a prejudicial manner, consistent with Article III:9 of the GATT? 
Answer
: 
The Law on Medicines provides for price controls on a limited number of medicines.  The list of these 
medicines will be provided in a decree that is curre ntly being drafted which will be submitted to the 
WTO as soon as it is available.  There will be no di fference in treatment of domestically produced and 
imported medicines.  
Question 3 
Regarding the response to Question  9 of WT/ACC/ CGR/7, we take note that the Government 
of Montenegro can set the prices of certain agric ultural products and that Montenegro refers to 
these as "support prices".  How will Montenegro  ensure that these price supports will be used 
only to guarantee an adequate return to local farmers ? 
Answer : 
Montenegro has abolished the Law on Social Price Control, which had such provisions.  There is no 
longer any authority for control of  prices of agricultural products.  
Question 4 
We note the Law on Social Price Control regulat es and authorises the Government to set prices 
in a range of areas, although it is not generally applied (WT/ACC/CGR/3 pages 8-9).  We seek WT/ACC/CGR/10 
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  further information on the following: Provisions of the Law that set the prices of certain 
agricultural products to stimulate agricultural pro duction, including details of the types of price 
controls applied, how they are applied, the prod ucts to which they are applied (by HS tariff), 
and their application to imported and domestic products (if the treatment is not the same). 
Answer
: 
Montenegro abolished the Law on Social Price Cont rol in February 2006.  Montenegro no longer has 
any provisions allowing the Government to set prices on agricultural products. 
Question 5 
The criteria under which price controls can be established in the case of "significant price 
disturbances", the nature of the price controls a pplied, and the products to which they can be 
applied. 
Answer : 
Please see the answer above. 
Question 6 
How does the Government determine that econo mic policy plans cannot be achieved without 
price controls?  
Answer : 
Please see the answer above. 
Question 7 
Will coal prices be deregulated after a maximum of five years after the Energy Law was passed 
in June 2003 ? 
Answer : 
Under, the Law on Energy (RM OG No. 39/03) pri ces for coal for the Powerplant Pljevlja are 
determined every five years by the Agency.  The Law does not require that prices for coal will be 
deregulated after five years from its passage. 
- Sector priorities 
Question 8 
Table II.4 on sector priorities (WT/ACC/CGR/3 p ages 12-13) mentions a number of priorities 
for the agriculture, forestry and water man agement sector. We would appreciate further 
information on the following:  The types of light  industry which are eligible to receive incentives 
based on domestic raw materials and deta ils of the types of incentives provided. 
Answer : 
Montenegro does not provide subsidies of that sort , except with respect to tobacco. Article 15 of the 
Law on Tobacco (RM OG No. 80/04) prescribes that a tobacco producer is obliged to produce or  WT/ACC/CGR/10 
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  purchase domestic tobacco sufficient for at least 40 pe r cent of its annual production of cigarettes and 
other tobacco products in the Republic, and at  minimum not less than 700 tons per year. 
Question 9 
How the Government achieves its priority of "s trengthening of competitiveness of domestic 
manufacturers and increased exports of agricultu ral goods", the types of incentives provided to 
domestic producers, and the producti on eligible for such incentives. 
Answer : 
The Government, through the Ministry of Agriculture, Forestry and Water Supply and the Ministry of 
Tourism, has a program called "domestic food for foreign guests" which encourages guests to try Montenegrin specialties such as prsuta, Montenegri n cheese, kajmak, and wine.  The idea is not to 
discriminate between domestic and imported food, but to promote traditional Montenegrin food with 
characteristics that derive from its geographical orig in.  Promotion takes the form of organized events 
with Montenegrin food served for presentation purpo ses.  There is no direct support to producers of 
domestic food. 
Also, the Ministry of Agriculture, Forestry an d Water Supply has programs to educate domestic 
producers on the requirements for export of produc ts on international markets.  These programs are 
mainly about packaging rules, labelling requireme nts, technical requirements such as quality and 
safety requirements.  The Government is trying to raise awareness of domestic producers about importance of certification as precondition for successful exporting. 
Question 10  
How Government support is provided in relation to "the creation of all the necessary 
prerequisites for increased utilisation of all ava ilable natural resources through implementation 
of the structured utilisation of agricultural land". 
Answer
: 
As mentioned above, Government invests a lot of efforts on education programs for domestic 
producers.  One of goals of these programs is to e fficiently allocate resources for production.  There 
was, and there is still, much confusion about the realistic capacities of Montenegrin agriculture.  For 
example, producers were traditionally oriented towa rd certain aspects of agriculture production that 
are not prosperous.  The Government is trying to pr ovide, through education, adequate information for 
producers so they can easily make decisions as to how best to allocate their resources.  
(b) Monetary and fiscal policies 
Question 11 
Please explain why Montenegro has exempted insurance and banking services, as well as 
services of games of chance (listed in Question 16) from VAT. 
Answer : 
Games of chance are subject to provisions of the Law on Games of Chance (RM OG No. 52/04), 
therefore they are excluded from VAT application. Both, banking and insurance services are subject 
to separate laws (The Law on Tax on Insurance Pr emium, RM OG No. 27/04, 37/04), and they are not WT/ACC/CGR/10 
Page 4  
 
  subject to VAT Law.  Furthermore, all three excepti ons are matter of standard practice in comparative 
legislation, including European Union (VI EU Directive on VAT).  
(c)  Foreign exchange and payments system 
Question 12 Please update the information on Montenegro's relations with the IMF and its status under the 
Articles of the Fund. 
Answer
: 
Montenegro finalized its stand-by arrangement with  IMF and it is now in monitoring phase.  That 
means Montenegro has no formal obligations towa rd IMF at this point and IMF will send only its 
regular missions to Montenegro.  Montenegro w ill ask for separate arrangement with IMF after 
resolving its political status, but not in terms of drawing new money.  The purpose of new 
arrangement should be in acquiring monetary stability and credibility in international financial circles 
through agreements on technical cooperation with IMF.  
(d) Foreign and domestic investment policies 
Question 13 
Will Montenegro provide to the Working Part y a copy of the Economic Reform Agenda, 
mentioned in response to Question 35 of WT/ACC/CGR/7? 
Answer : 
The Economic Reform Agenda is availa ble through document WT/ACC/CGR/11. 
Question 14 
According to the responses to Questions 28 and 42  of WT/ACC/CGR/7, a foreign investor may 
invest in production and trade in the border dist rict only jointly with a domestic person and the 
share of the foreign investor may not exceed  49 per cent.  Please describe the types of 
commercial activities that take place within the "border strip"? 
Answer : 
Activities that may be performed by foreign investor s in the border strip are not limited.  Only share 
of ownership of foreign investor is limited to 49 per cent.  
The Government of Montenegro is reconsidering review of the Law on Foreign Investment at the 
moment.  More detailed information will be submitted as soon as they become available. 
Question 15 
Will the Montenegrin Investment Promotion Ag ency, described in response to Question 40 of 
WT/ACC/CGR/7, treat foreign and domestic in vestors equally?  Will this agency provide 
subsidies or support to promote foreign invest ment?  Will the agency provide incentives based 
on export requirements or domestic content requirements?    WT/ACC/CGR/10 
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  Answer : 
The Montenegrin Investment Promotion Agency trea ts foreign and domestic investors equally.  The 
main purpose of the Agency is to facilitate invest ment by foreign investors, mainly by providing 
information.  The Agency does not provide subsidies or other financial support to investors, and there 
are no incentives based on export or domestic content requirements.   
Question 16 We note that under the Foreign Investment Law fo reign participation is limited to 49 per cent 
of stocks, in the case of production in the border district (WT/ACC/CGR/3 pages 20-21).  Can Montenegro provide more information on  the reasons for this limitation?  
Answer
: 
The Government of Montenegro is reconsidering review of the Law on Foreign Investment at the 
moment.  More detailed information will be submitted as soon as they become available. 
Question 17 
Are there any other conditions for registration of the daughter company of a foreign investor in 
Montenegro besides the obligatory employment of domestic working force? 
Answer : 
Foreign companies which establish a Foreign Compan y Branch within the Republic of Montenegro 
must, within 30 days of its establishment deliver to  the Central Registry of the Commercial Court for 
registration the following: 
- The address of the branch; 
- The activities of the branch; 
- The name and legal form of the foreign co mpany and the name of the foreign company 
branch if it is different from the name of the company; 
- An authenticated copy of the charter of the fo reign company and a translation of the charter in 
the Serbian language duly certified as a true and correct translation; 
- A copy of the foreign company's registration certificate or a corresponding  duly authenticated 
document confirming the legal registration of the company in its home state; 
- The names and addresses of the person or pe rsons who are authorized to represent the 
company in dealings with third parties a nd in legal proceedings: (a) as a company body 
constituted pursuant to law or as members of any such body; (b) as permanent representatives 
of the company for the activities of the branch, a nd the extent that the persons are authorized 
to represent the company, whether they may do so alone or jointly; 
- The names and addresses of one or more pers ons resident in the Republic of Montenegro 
authorized to accept on behalf of the company service of legal process and any notice required to be served on the company; and 
- The most recent balance sheet and profit and loss statement or similar financial documents 
required under the law where the company is registered.  
Question 18 What is the anticipated timeframe for amending the Foreign Investment Law? WT/ACC/CGR/10 
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  Answer
: 
The Government of Montenegro is reconsidering review of the Law on Foreign Investment at the 
moment.  More detailed information will be  submitted as soon as it becomes available. 
(e) Competition policies 
Question 19 
Montenegro is developing a draft Law on th e Protection of Competition and has provided a 
useful description of the main elements of the proposed Law (WT/ACC/CGR/3 page 21).  We seek information on whether this Law was passed by Parliament in July as anticipated, and 
whether it will supersede the existent  Antimonopoly Law FRY OG No. 29/96. 
Answer
: 
The Competition Law (RM OG No. 69/05) was enact ed in November 2005 and supersedes the prior 
Antimonopoly Law. 
Question 20 
Has the Law on Competition been pa ssed by Parliament as expected? 
Answer : 
The Competition Law (RM OG No. 69/05) was enacted  in November 2005, and supersedes the prior 
Antimonopoly Law. 
(f) Privatisation policies 
Question 21 According to the response to Question 55 in WT/ACC/CGR/7, detailed information on joint 
venture requirements in the eight sectors in whic h Montenegro expects joint ventures to provide 
models of information is available in the normal  tender process and will, in many cases, be the 
product of negotiation between private sector parties.  Are there any laws or regulations of general applicability that limit foreign investment  for any of these eight sectors in the form of 
joint ventures?  If so, please describe. 
Answer
: 
No. 
Question 22 
Regarding Montenegro's efforts to promote loca l food, described in response to Question 59 of 
WT/ACC/CGR/7, could Montenegro please provide  additional information on the types of 
promotions used to encourage consumption of local specialties?  Does the "domestic food for foreign guests" program provide government su pport to domestic agricultural producers or 
purveyors of these products?  What type of suppo rt is granted?  How are the product selected 
and by whom?  The promotion of domestically-produced food products may raise national treatment concerns.   In addition, any governme nt-funded domestic support program should be 
notified to the WTO in the appropriate domest ic support tables.  Has Montenegro included  WT/ACC/CGR/10 
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  them in its notification of domestic support and export subsidies in the agricultural sector - 
WT/ACC/SPEC/CGR/1? 
Answer : 
The Government of Montenegro identifies tourism as  a priority sector.  Therefore, numerous activities 
are in place in order to improve tourism in Montenegro. One of these is a program called "domestic 
food for foreign guests" which encourages guests to try Montenegrin specialties such as prsuta, 
Montenegrin cheese, kajmak, and wine.  The idea is not to discriminate between domestic and 
imported food, but to promote traditional Montenegri n food with characteristics that derive from its 
geographical origin.  Promotion takes form of or ganized events with Montenegrin food served for 
presentation purposes.  There is no direct support to producers of domestic food.  Products are 
selected on the basis of being recognized as "tra ditionally Montenegrin products" by customers.  
Montenegro notified this program in its WT/ACC/4 document as a "green box" program.   
Question 23 
We note Montenegro's statement that foreign an d domestic investors have equal treatment in 
privatization, and that no sectors are excluded from privatization besides those mentioned on 
page 11 of the FTRM. 
Answer : 
We confirm that statement provided in answer to Question 60 is correct.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
2.  Government entities responsible for making  and implementing policies affecting foreign 
trade 
Question 24 According to Annex 1 of WT/ACC/CGR/7, the Ministry of Agriculture is responsible for 
veterinary and phytosanitary insp ection and the Ministry of Health  is responsible for sanitary 
inspection.  Please confirm that the Ministry of Health is the competent authority for all meat 
and poultry inspections and that any inquiries rel ated to testing should be directed to the 
Ministry of Health. 
Answer
: 
The Veterinary Administration, under the supervisio n of the Ministry of Agriculture, is responsible 
for all inspections of shipments of animal origin in international trade, including meat and poultry  
The Veterinary Administration is responsible for managing the system for hygiene and health safety 
of food of animal origin, and it performs that by  implementing provisions of the Veterinary Law and 
other laws and by-laws in this area, for both domestic and foreign trade.  WT/ACC/CGR/10 
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  3. Division of authority between central and sub-central governments 
Question 25 As to Montenegro's trading regime with Serbia, the response to Question 71 of 
WT/ACC/CGR/7 indicates that if a good imported into Serbia from outside the State Union passes SPS controls in Serbia, it does not have  to undergo SPS inspection in Montenegro, 
because, "SPS inspections done in one member st ate are accepted in the other member state."  
In addition, goods of Serbian origin which pass SPS inspection in Serbia, can also enter 
Montenegro "without further SPS inspection".  In fact, "transactions [concerning goods of Serbian origin] do not require the Ministry approvals required of imported goods."  What 
"Ministry approvals" are referred to here?   
Answer
: 
Imported goods that are subject to SPS controls are required to have authorization from the Ministry 
of Agriculture of the member state that is the final destination of the goods.  This approval is 
administrative in nature, and is intended to ensure that the goods to be imported have the proper 
documentation from the exporting country, are not from areas known to have plant or animal diseases, 
are from sources possessing the necessa ry certifications allowing them to export, and to ensure that 
the goods are imported through the proper border post.  
The new Law on Plant Protection abolishes these appr ovals for plant shipments.  Importers will be 
allowed to import plant shipments without prior a pproval from the Ministry, but these shipments will 
be subject to phytosanitary inspection at the borde r.  The only restriction on plant shipments is 
prescribed in Article 26 of new Plant Protection Law, which provides that licenses may be required 
for import or transit of plants or parts of plants  that may carry harmful organisms threatening to 
human, plant and animal health.  Such a licence may be imposed based on conditions in foreign trade, 
international recommendations and guidelines, or ava ilable scientific evidences and risk assessments.  
Further details regarding issuance of this licence will be prescribed in a by-law, but these will be 
compliant with the Law on Foreign Trad e, and with GATT Article XX and XI.  
Domestic shipments will be subject to the same requirements and procedures: movement of domestic 
plants that may carry harmful organisms will be also subject to licence.   
Regarding veterinary measures: the border veterinary  inspector, in accordance with Articles 31 and 96 
of the Veterinary Law, inspects shipments and th eir documentation and allows import, transit or 
warehousing of animals, food, raw material, animal  feed and animal waste.  Those goods that are 
subject to veterinary inspection require the "min istry approvals" you referred to them in your 
question.  These approvals are docum ents confirming that a shipment fulfils the veterinary-sanitary 
requirements for import.  They are issued by th e Veterinary Administration in accordance with 
domestic legislation, OIE standards a nd other international standards.  
The Veterinary Law is currently under review and as soon as the Law on Amendments and Changes 
became available it will be submitted to the WTO.   
Question 26 Are goods imported into Serbia from outside the State Union, but which undergo SPS 
inspection in Serbia before shipment to Monten egro subject to these "Ministry approvals"?    WT/ACC/CGR/10 
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  Answer : 
In accordance with the Protocol on the Harmonizati on of Operations and Procedures in the Foreign 
Trade of Goods Liable to Mandatory Veterinary-San itary and Phyto-sanitary control at the border of 
State Union of Serbia and Monteneg ro, agreed between the ministries of  agriculture of Serbia and of 
Montenegro, the following is applied to products subject to SPS control between two member states: 
Chapter I on Veterinary-Sanitary Control, paragraph 3:  
 "In case an importer with a head office in the Republic of Serbia, who had imported a 
shipment based on the decision issued by the Mi nistry of the Republic of Serbia and on the 
control performed by the veterinary inspection of the Ministry of Serbia, would want to sell a part of such shipment on the market of the Re public of Montenegro, the veterinary inspection 
of the Ministry of Montenegro shall allow en try of such shipment into the Republic of 
Montenegro provided that the importer obtains  a decision on the fulfilment of veterinary-
sanitary conditions for the import of that shipme nt with the Ministry of Montenegro, and at 
the entry into the Republic of Montenegro pr esents evidence that the shipment was imported 
under the decision issued by the Ministry of Serbia and evidences that all necessary 
laboratory tests were done.  The same shall appl y in the case when an importer with a head 
office in Montenegro wants to sell his products im ported, based on the d ecision issued by the 
Ministry of the Montenegro, on the market of the Republic of Serbia. 
 In cases mentioned above, laboratory findings issued by authorized laboratories of member 
states shall be recognized." 
Chapter II on Phytosanitary Control, paragraph 3:
 
 "In case that an importer from Serbia, who had imported a shipment based on the decision 
issued by the Ministry of Serbia and on the control performed by the phytosanitary inspection 
of the Ministry of Serbia, would want to sell a part of such shipment on the market of the 
Republic of Montenegro, the phytosanitary servi ce of Montenegro shall allow entry of such 
shipment into the Republic of Montenegro prov ided that the importer obtains a decision on 
the fulfilment of phytosanitary conditions for th e unobstructed import of that shipment with 
the Ministry of Montenegro, and at the entr y into the Republic of Montenegro presents 
evidence that the shipment was imported under th e decision issued by the Ministry of Serbia 
and evidences that visual examination of th e shipment was done or that all necessary 
laboratory tests were performed.  The same shall apply in the case when an importer from 
Montenegro wants to sell his products imported based on the decision issued by the Ministry 
of Montenegro at the market of the Republic  of Serbia. In referred cases laboratory findings 
by authorized laboratories of member states sh all be recognized, i.e. visual examinations by 
competent phytosanitary inspectors." 
There is no formal requirement for domestic shipme nts to have the equivale nt of "import approvals" 
due to the different nature of internal trade, but su bstantially the same level of control is applied to 
both domestic and foreign goods.  Thus there is no discriminati on between imported and domestic 
products subject to SPS control. 
Please note that under new Plant Protection Law this  import approval for plants is abolished. 
Question 27 
The response to Question 71 of WT/ACC/CGR/7 also  states that imported goods subject to SPS 
controls are required to obtain authorization fr om the Ministry of Agriculture to ensure that WT/ACC/CGR/10 
Page 10  
 
  imports do not come from areas which have plan t or animal diseases, authorization which is not 
required of domestic goods.  Does this requirement  apply to any and all plant or animal diseases 
or just certain diseases?  
Answer
: 
Please see the answer to Question 25, above. Question 28 Why does this authorization not apply to domestic goods?  
Answer
: 
Please see the answer to Question 25, above. 
Question 29 
Please explain the scientific basis of this additional authorization above and beyond standard 
SPS inspections and its compliance with the provision of the SPS Agreement. 
Answer : 
These authorizations are abolished with new Law on Plant Protection and this issue will be further 
clarified in its implementing re gulations and in the new Food Safety Law, which is now in 
preparation.  The Plant Protection Law is  available through document WT/ACC/CGR/11. 
The Veterinary Law is also currently under revi ew, and more detailed information will be submitted 
as soon as the new draft amendments to the Law becomes available. 
Question 30 
We thank Montenegro for the table provided in response to Question 73 of WT/ACC/CGR/7, 
setting out the laws related to Montenegro's WT O Accession.  Is this the complete Legislative 
Action Plan for all accession-related legislatio n?  We note that the table does not include a 
reference to the law on trade secrets, ref erred to in the response to Question 134 of 
WT/ACC/CGR/7, the new Law on Geographical Indi cations, nor the revised Decision on the 
Control List classifying goods subject to export or  import licenses, referred to in the response to 
Question 123 of WT/ACC/CGR/7.  In addition, the table does not contain any dates for the 
amendments to the Customs Law or to the Veterinary Law.  Please provide an updated 
Legislative Action Plan before the next Working Party meeting.  
Answer : 
The updated Legislative Action Plan is av ailable through document WT/ACC/CGR/12.   
4.  Any legislative programmes or plans to change the regulatory regime 
Question 31 
We are interested in clarifying the authority for the enforcement of WTO related laws between 
the Republic of Montenegro and the State Union of  Serbia and Montenegro.  We note that the  WT/ACC/CGR/10 
 Page 11 
 
 
  Union has responsibility for foreign trade and WT O-relevant matters in certain areas, but our 
understanding is limited. 
Answer : 
Although some of the laws governing WTO provisions have been passed at the State Union level, 
Montenegro, rather than the State Union, will accept the WTO obligations.  Montenegro will ratify 
the WTO agreements; no State Union ratification is required.  The State Union has responsibility for 
enactment of substantial laws in area of TBT and IPR, but enforcemen t of these laws is under member 
states auspices.  State Union passed all substantial laws from areas of TBT and IPR, with exception of 
the Law on Geographical Indications that is expected to  be passed in the near future.  By the date of 
accession, all relevant State Union laws will be  WTO-compliant, and directly effective on 
Montenegro. 
In addition, Montenegro will hold a referendu m on full independence on 21 May 2006.  The 
Government expects that the referendum will be successful, in which case th e State Union will cease 
to exist, and relevant State Union legisl ation will become Montenegrin legislation. 
Question 32 
We note in its response to Question 68 Monteneg ro indicates that sub-central governments do 
have rights to impose taxes on consumption of alcoholic and non-alcoholic beverages, as on 
items such as property and construction land.  This suggests that these entities do have competencies that relate to WTO commitments (for  example, national treatment in relation to 
internal taxation).  We would therefore appr eciate further detail on how the "responsible 
Ministry of the Government" would seek to corre ct any inconsistencies relating to WTO rules 
at sub-central level. 
Answer
: 
The Ministry of Finance is responsible for collecti on of all taxes through organizational units of the 
Tax Administration and for correct implementation of  all tax laws.  The municipality has right to 
impose few types of taxes (real estate tax, sur-tax  on income of natural persons, tax on non-built 
construction land, tax on firm name, etc.).  But ev en in situations where taxes are applied by the 
municipality, the Ministry of Finance has full s upervisory authority and acts as the second instance 
authority in general administrative procedure. 
IV. POLICIES AFFECTING TRADE IN GOODS  
1. Import Regulation (a) Registration requirements for engaging in importing 
Question 33 
Montenegro states in its response in Question 77 of WT/ACC/CGR/7 that natural persons are 
authorized to import goods only for their perso nal use unless they register as entrepreneurs.  
Can Montenegro please describe the steps that a na tural person needs to fo llow to register as an 
entrepreneur?  For example, does an entrepreneu r register with the Commercial Court or with 
another agency?  WT/ACC/CGR/10 
Page 12  
 
  Answer
: 
An individual entrepreneur must register with the Central Registry of the Commercial Court by 
submitting a registration statement in accordance wi th the Law on Business Entities, for statistical 
purposes.  The entrepreneur shall receive a registra tion certificate.  Such certificate is not a business 
licence and shall have no legal effect. 
Documents submitted to the Central Registry that ha ve not been rejected within four business days 
shall be deemed to be validly registered whether or not a certificate has been issued. 
The Central Registry charges 10 Euros fee for registration of entrepreneurs. 
Question 34 
In response to Question 84 of WT/ACC/CGR/7, Montenegro has explained that a business 
entity must specify the proposed activities of the company when registering with the 
Commercial Court Register, but that a mere specification in its articles that it will engage in foreign trade will authorize it to trade in all goods.  Can Montenegro please confirm that this 
statement is correct?   
Answer
: 
We confirm that this statement is correct. 
Question 35 
Regarding licence renewal fees, described in response to Question 88 of WT/ACC/CGR/7, why 
is the fee for renewal of an expired registration  so significantly higher than the fee for renewal 
of an unexpired registration?  Article VIII of the GATT requires that fees reflect the approximate cost of the service rendered.  Pl ease describe the difference in services that 
warrant a 100 per cent increase in fe e for an expired registration. 
Answer
: 
The rational for this difference is to motivate bus iness people to renew their registrations on time.  
Question 36 
Please explain the rationale for prohibiting foreign entities or persons from importing 
pharmaceutical products into Montenegro, as described in response to Question 93 of 
WT/ACC/CGR/7.  This prohibition restricts th e right to trade imported pharmaceutical 
products in a manner less favourable than domestic  goods.  The right to trade is not the same as 
the right to distribute and should not be limited in this fashion. 
Answer : 
Foreign pharmaceutical manufacturers may export to but  are not permitted to import into Montenegro.  
However, they can make arrangements with an existing company registered in Montenegro, or 
establish their own Montenegrin subsidiary for trad ing and importing pharmaceuticals.  There is no 
requirement to have a licence for domestic production in order to engage in trade and importing.  In 
fact, every entity, domestic or foreign, has to be registered in the Commercial Court Register in order 
to engage in foreign trade.  By registering, a fo reign company acquires the status of a domestic entity 
and has the same rights and obligations as a domestic company.   WT/ACC/CGR/10 
 Page 13 
 
 
  Question 37 
In response to Question 95 of WT/ACC/CGR/7, Montenegro clarified that only a legal entity 
registered in the commercial court may import p esticides.  What is the rationale for this 
restriction?  
Answer : 
In order to engage in business in Montenegro, includi ng foreign trade, it is necessary to be registered 
in the Commercial Court Register either as a legal entity or as an entrepreneur.  For certain types of 
business, specific laws require particular a form of organization.  In this case, the Law on Plant Protection provides that pesticides may not be im ported by natural persons. A new draft Law on 
Pesticides will have the same requirement.  The ra tionale for this provision is that pesticides are 
highly poisonous substances which may be used for purposes other th an agriculture; therefore their 
circulation has to be under control.  By prescrib ing that natural persons may not import pesticides, 
Parliament intended to ensure that only legal en tities or entrepreneurs who fulfil conditions for 
circulation of pesticides and who employ qualifie d personnel for handling of pesticides as poisonous 
substances may import them.  
Question 38 We note that no restrictions exist on the trading rights of foreign economic operators. 
Answer
: 
We confirm that there are no restrictions on the tr ading rights of foreign economic operators as we 
provided in answer on Question 98.  
(b) Characteristics of National Tariff 
Question 39 
Regarding the response to Question 99 of WT/ ACC/CGR/7, could Montenegro please provide 
an update on whether the new customs tariff law had been placed on the legislative agenda and is still likely to be approved by the end of Se ptember 2005?  If not, could Montenegro provide 
an updated timetable for passage? 
Answer
: 
The new Law on Customs Tariff, based on HS 2002,  was enacted on 7 December 2005.  The Law is 
available through document WT/ACC/CGR/11. 
Question 40 
Please provide a copy in English of the Law on Customs Tariffs. 
Answer : 
The new Law on Customs Tariff, based on HS 2002,  was enacted on 7 December 2005.  The Law is 
available through document WT/ACC/CGR/11. WT/ACC/CGR/10 
Page 14  
 
  (c) Tariff quotas, tariff exemptions 
Question 41 Regarding the import of products into the fronti er strip, described in response to Question 110 
of WT/ACC/CGR/7, please describe the steps ta ken by Montenegrin customs to prevent such 
products from being entered into the general stream of commerce. 
Answer
: 
Montenegro prevents general circulation of such g oods with supervision at the border.  There are no 
specific measures applied uniquely to these goods: they  are under customs supervision and control in 
the same manner as other goods crossing the border.  
Question 42 
We note that Montenegro does not apply any ta riff rate quotas, except for those provided under 
FTAs (WT/ACC/CGR/3 page 42).  We seek some clarification: Is it correct to say that Montenegro only applies these TRQs on sensitive  agricultural products, as agreed with its FTA 
partners?  If not, what other products attract TRQs? 
Answer
: 
Montenegro applies TRQs only on sensitive agricultural products agreed in FTAs. 
Question 43 
Were the TRQs already in existence prio r to Montenegro entering the FTA? 
Answer : 
No. 
Question 44 
Will Montenegro agree to bind tariffs on accession  to the WTO for all its products and not 
resort to TRQs? 
Answer : 
Montenegro will bind tariffs for all of its products.  TRQs, if any, will be limited to FTAs involving 
tariffs below those applied on an MFN basis. 
Question 45 According to Article 184 of Montenegro's Custom s Law, certain goods are exempt from import 
duties, including those specified by internat ional agreement (WT/ACC/CGR/3 page 43): Can 
Montenegro be more specific as to what good s and agreements are exempt from import duties 
on a bilateral (non-MFN) basis?  WT/ACC/CGR/10 
 Page 15 
 
 
  Answer : 
Such exemptions are provided only under FTAs (Ar ticle 184 of the Customs Law).  Montenegro has 
provided a list of all goods subject to FTAs in Annex 9 to its Memorandum on the Foreign Trade Regime.  
Question 46 
On page 43, of WT/ACC/CGR/3, Montenegro not es that some agricultural products are exempt 
from import duties where they are "situated in the frontier strip, possess in the frontier strip of 
the neighbouring country".  We seek clarification of this statement, and confirmation that this 
means such goods coming from a neighbourin g country will enter Montenegro duty free? 
Answer
: 
We confirm that, based on Article 184, paragraph 1, Item 9, Montenegrins situated in "the frontier 
strip" may enter duty free products of crop cultivation,  livestock breeding, forestry, fish breeding, and 
apiculture obtained from private holdings situated in the frontier strip of the neighbouring country, as well as offspring and other products obtained from li vestock bred at these holdings for the reason of 
field works, grazing or wintering.  
The purpose is facilitation of movement of peopl e and goods in the border region of neighbouring 
countries.  Goods falling under this  provision are intended only for pe rsonal use and not for placing in 
commercial channels.  Montenegro prevents general circulation of goods with customs supervision at 
the border.  
(d)  Other duties and charges, specify ing any charges for services rendered 
Question 47 
Regarding the special charges imposed under the Decree on Special Charge on Importation of 
Agricultural and Food Products discussed in  the response to Question 119 in WT/ACC/CGR/7, 
please provide the Working Party with a list of special charges on imports of agricultural goods and their ad valorem  equivalents.  Does Montenegro plan to distinguish such additional charges 
from MFN applied duties in the tariff schedule as other duties and charges or to add these to 
MFN applied rates? 
Answer
: 
The new Law on Customs Tariff replaced "special ch arges" with specific duties that are imposed in 
addition to ad valorem  duties.  Under the new law, 319 products have both ad valorem and specific 
duties. 
Question 48 
Regarding the response to Question 120 of WT/ ACC/CGR/7, will Montenegro please provide to 
the Working Party a translation of the Decision on the Amount for Fee for Veterinary-sanitary 
examination of animals, products, raw materials and waste of animal origin in production and circulation (RM OG No. 51/03, 56.03)?   
Answer
: 
The requested Decision is available through document WT/ACC/CGR/11. WT/ACC/CGR/10 
Page 16  
 
  Question 49 
Please provide more details of changes to the ad valorem  customs procedures fee and fees for 
veterinary-sanitary control that have been initiated. 
We take note of the commitment of the authorities of Montenegro to make all ad valorem fees 
fully compliant with GATT Article VIII prior to the date of accession.  What is Montenegro's 
timetable to achieve this? 
Answer
: 
Amendments to the Customs Law that will provide  full WTO compliance have been drafted.  The 
draft will Article 291 to provide that fees for customs service will reflect the cost of the services.  The 
amendments are currently in inter-ministerial proc edure, and enactment is planned by the end of 
June 2006.  
The Decision on Fees for Veterinary-Sanitary C ontrol (RM OG No. 50/05) has been amended to 
provide that fees for veterinary control reflect the cost of service rendered.  The amended Decision is 
available through document WT/ACC/CGR/11. 
(e) Import prohibitions 
Question 50 
Montenegro has declared that under Article 14 of its Foreign Trade Law (WT/ACC/CGR/3 
page 45) certain goods are banned from import in to Montenegro: Are import bans applied to 
goods apart from those listed under Article 7 of th e Law on Health of Foodstuffs and Items of 
General Use 1991 (WT/ACC/CGR/3/Add. 1 page 221) and, if so, can Montenegro please provide 
a comprehensive list of banned imports? 
Answer : 
Article 14 of the Foreign Trade Law merely pr ovides authority to ban imports under relevant 
provisions of the GATT. 
Article 7 of the Law on Health of  Foodstuffs and Items of Genera l Use does not list goods that are 
subject to import ban.  The table that follows Article 7 page 221 in Addendum 1 provides excerpts 
from various legislation related to SPS measures.  That table is based on the old Law on Plant 
Protection, which is now replaced by a new Plant Protection Law.  
The text of the new Law on Plant Protection is available through document WT/ACC/CGR/11. 
Question 51 
Can Montenegro please describe the scientific cri teria and processes it uses to determine that 
animal and plant imports should be prohibit ed for sanitary and phytosanitary reasons? 
(WT/ACC/CGR/3 page 45). 
Answer : 
This issue will be clarified in the new Plant Prot ection and Food Safety Law, and their implementing 
regulations, which are now in preparation.  The Plant Protection Law is available through document 
WT/ACC/CGR/11.  WT/ACC/CGR/10 
 Page 17 
 
 
  The Veterinary Law is also currently under revi ew, therefore more detailed information will be 
submitted as soon as the draft Law on Amendments and Changes of the Veterinary Law becomes 
available. 
Question 52 
Can Montenegro indicate whether prohibition of these imports is the least-trade restrictive 
means by which it could its SPS or TBT objectives? 
Answer : 
Montenegro will apply all sanitary and phytosanitary  measures in the least restrictive manner and in 
full compliance with the SPS Agreement and other relevant WTO rules. 
(f) Import licensing procedures 
Question 53 
We are struck by the extensive list of products  in Annex 11 of  WT/ACC/ CGR/3 that are subject 
to import licensing in Montenegro - over 30 pag es.  According to the response to Question 123 
WT/ACC/CGR/7, Montenegro is revising its list of products subject to import and export 
licensing.  We look forward to reviewing the ne w list of products subject to import licensing 
requirements, and hope that the revised list will be significantly shorter.  When that list is 
provided to the Working Party, please provide a single chart, listing the tariff line for each 
product subject to an import licensing require ment, a short description of the product, the 
Ministry(ies) responsible for issuing the licence an d a justification for requiring a licence.   
Answer : 
The revised Decision on Control list is available through document WT/ACC/CGR/11. Question 54 In the response to Question 123 of WT/ACC/CGR/7, Montenegro explains that it is revising the 
Decision on the Control List classifying good s subject to licensing.  However, Montenegro 
submitted the Decision on the Control List classifying goods subject to licensing (RM OG No. 44/04) as part of the legislation provided in WT/ACC/CGR/9.  Is that document the old 
Decision or the revised version?   We note  that the Decision submitted as part of 
WT/ACC/CGR/9 did not contain Exhibit 1, the critical list of products subject to import 
licensing.  If the Decision on the Control Li st submitted in document WT/ACC/CGR/9 is the 
revised version, please provide the Working Party with Exhibit 1, as well as the chart described 
above.  If the Decision on the Control List is outdated version, please inform the Working Party 
on the status of the revised Decision. 
Answer
: 
The complete text and all annexes (exhibits) of the new Decision on Control List, with WTO 
justifications for each item, are available thr ough document WT/ACC/CGR/11.  What was provided 
before was the old Decision on Control List.  WT/ACC/CGR/10 
Page 18  
 
  Question 55 
Regarding the responses to Questions 124 and 12 4 of WT/ACC/CGR/7, what is Montenegro's 
expected timeframe for passage of the new draft Law on Customs Tariff. 
Answer
: 
The new Law on Customs Tariff based on HS 2002, was enacted on 7 December 2005, and is 
available through document WT/ACC/CGR/11. 
Question 56 
Regarding the response to Question 128 of WT/ ACC/CGR/7, please explain, in detail, the 
activity licence system.  What does it take to get an activity license?  Who is allowed to apply for 
the license?  What fees are required?   
Answer : 
Tobacco:  Manufacturing and wholesale and retail trad e in tobacco products may be pursued only by a 
company or entrepreneur that is licensed and registered in accordance with the Law on Tobacco. 
Public tenders for licenses for tobacco products manu facturing are implemented by the administrative 
authority for tobacco, taking into account the fiscal interest, situati on on the market, and previously 
assumed commitments of the Republic of Montenegro related to the tobacco products manufacturing. 
To be eligible to participate in such a tender a company or entrepreneur must: 
- Be able to carry out all phases of produc tion from the preparation of tobacco  to 
manufacturing of cigarettes and other to bacco products and their packaging; 
- Have facilities to manufacture a minimum annual output of 1,500,000,000 cigarettes; 
-  Have facilities to manufacture other tobacco products (cigars, cigarillos, cut tobacco, pipe 
tobacco, chewing tobacco, and snuff tobacco); 
- Have a suitable laboratory for tobacco  products analysis and quality control; 
- Have suitable premises complying with the prescribed requirements for production or 
circulation of the articles of general use; 
- Employ suitable skilled work force in manufacture and quality assessment; and 
- Commit to produce or buy domestic processed tobacco sufficient for at least 40 per cent of 
their annual production of cigarettes and other tobacco products, and not less than 700 tons a 
year; and 
- Offer a realistic estimate of annual output of cigarettes and other tobacco products according 
to the suitable quality and quan tity and in accordance with th e situation on the market. 
Compliance with the requirements set above is determined by the administrative authority for 
tobacco, which, upon the advice of the Ministry in ch arge for agriculture and the Ministry in charge of 
health, decides on granting the licen ce to a company or entrepreneur. 
The licence of a company or entrepreneur ceasing to comply with these requirements may be revoked.   An application for a licence for wholesale trade in  tobacco products must include evidence that the 
applicant:  
- Has available orderly storage of at least 30 tons of cigarettes and other tobacco products;  WT/ACC/CGR/10 
 Page 19 
 
 
  - Has appropriate means of transport, which must be visibly marked, so that from its 
warehouses it may regularly supply retailers; and 
- Has entered into a preliminary agreement on supply of tobacco products with a registered 
manufacturer or importer of tobacco products. 
A licence for wholesale trade in tobacco products requi res a fee of € 150,000 which is revenue to the 
budget of Montenegro and may be paid in five equal annual instalments. 
A registered importer who meets the requirements may be granted a licence for wholesale trade.    If such importer engages solely in importation of ot her tobacco products (cigarillos, cut tobacco, pipe 
tobacco, chewing tobacco, and snuff tobacco), the fee for obtaining the licence is payable in the 
amount of € 30,000 which can also be pa id in five equal annual instalments. 
The company and/or entrepreneur that are grante d licence to engage in tobacco product wholesale are 
entered in the Register of Tobacco Product Wholesalers.  
The administrative authority for tobacco decid es on revoking the licence from the tobacco product 
wholesaler which does not fulfil any longer the requi rements described above, or from the one which, 
pursuant to its own decision, ceases to pursue wholesale trade in tobacco products, or fails to pay the 
subsequent instalment of the licence fee.  
The licence may be also revoked from the tobacco produc t wholesaler if it is punished for offence in 
wholesale trading in tobacco products and/or if th e person authorized to represent the company and/or 
entrepreneur has been punished for criminal offe nce of unauthorized trade in cigarettes and other 
tobacco products.  
The tobacco product wholesaler sells tobacco products  exclusively through a tobacco product retailer 
who has been granted licence under the Law on Tobacco.  
The wholesaler in cigarettes and tobacco products, and/or the importer determine retail prices and 
notify the administrative authority.  
A company and/or entrepreneur applying for a licen ce for retail trade in tobacco products must show:  
- That it has entered into preliminary agreemen t on the supply of tobacco products with tobacco 
product wholesalers;  
- That it has the facilities which satisfy sanitary, health and other conditions in accordance with 
the law on sanitary control; and 
- That it has no outstanding obligations in respect of public revenues.  
A licence for retail trade in tobacco products shall not be granted to an applicant  who, within a three-
year period preceding the application,  was found gu ilty of unauthorized trade in cigarettes and other 
tobacco products.   
The administrative authority must decide on a licence application within 30 days. 
A fee of € 100 per sales outlet needs to be paid in order to obtain a retail licence valid for two years.  
Energy:  The Law on Energy prescribes that the Energy Regulatory Ag ency issues licenses for 
activities related to energy sector facilities, networks  and equipment for the generation, transmission, 
distribution, supply and sale of energy.  Any foreign or domestic entity may apply to the Agency for a 
licence. WT/ACC/CGR/10 
Page 20  
 
  The Agency issues licenses b ased upon the following criteria: 
(i) Harmonization of facilities, energy network, installations and equipm ent with the conditions 
and standards; 
(ii)  Protection of public health and safety; (iii)  Protection of the environment; 
(iv)  Land use and siting; 
(v)  Use of public property; (vi)  Energy efficiency and conservation of electricity; (vii)  The nature of primary energy sources, and (viii)  The technical, economic and financial capabilities of the applicant. 
Medicines and Medical Devices:  Licenses and approvals for import of medicines and medical 
devices are issued by the Ministry of Health in accordance with the La w on Medicines (RM OG 
No. 80/04).  Legal persons licensed by the Agency for Medicines may engage in wholesale trade in 
medicines, including import and export.  Trade is lim ited to medicines that have a trade authorization, 
unless the Agency for Medicines approves and determines the volume of supply, import or export of a 
medicine without a trade authorization.   
In order to be licensed for wholesale trade in medicines, a legal person must meet certain 
requirements established by the Agency for Medicines with respect to facilities, trained personnel, and 
record-keeping.  The Agency may take up to nine ty (90) days to act on a licence application.  
Licenses are issued for an unlimited period of time, but may be revoked for cause. 
Question 57 
Table II.1, provided in response to Question II.1 of the import licensing questionnaire 
(WT/ACC/CGR/7, Annex 2), does not respond fully to the question.   
Please provide the number of items subject to licensing requirements by each government 
agency.  We do not  understand how this information could be "Not available".   
Answer
: 
The revised Decision on Control List is availa ble through document WT/ACC/CGR/11. All items 
subject to licence are provided there with precise in formation on responsibilities for issuing particular 
licenses. 
Question 58 
Reference to previous submissions for "Detailed Information" is not an appropriate answer.  
Please provide the requested information. 
Answer : 
Please see the answer above. 
Question 59 
We do not understand the reference to the "L ist of precursors according to the Vienna 
Convention".  Please clarify.  WT/ACC/CGR/10 
 Page 21 
 
 
  Answer : 
Precursors are substances used for production of narc otics. As such, they are defined and listed by 
their tariff numbers in the Annex to the Vienna  Convention on Psychotropic Substances.  Their 
circulation is under control of all signatories to the Convention.  In practice, that means they are under 
the licensing regime.  The list of precursors is included in the revised Decision on Control List which 
is available through document WT/ACC/CGR/11. 
Question 60 
The general description of arms, military technol ogy and certain dual products is of little use 
without the corresponding tariff numbers.  Please resu bmit this table with responsive answers.  
Answer : 
The list of arms, military technology and certain dual products subject to import licenses under the 
Union Law on Foreign Trade in Arms, Military Eq uipment and Dual Use Goods in Laws and other 
legal acts are available through document WT/ACC/CGR/11. 
Question 61 
Could Montenegro please submit to the Workin g Party a copy of The Union Law on Foreign 
Trade in Arms, Military Equipment and Dual Use Goods. 
Answer : 
The requested Law is available through document WT/ACC/CGR/11. 
Question 62 
Regarding the response to Question II.2 of the import licensing questionnaire 
(WT/ACC/CGR/7, Annex 2), if licenses are required for the reasons stated in response to 
Question II.3 of the import licensing questionnaire (i.e. to protect human, animal or plant life or 
health), please explain why licenses are not requi red from countries that have bilateral free 
trade agreements with Serbia and Montenegro.  How was it determined that products from 
these countries no long er pose these risks?  
Answer : 
We apologize for incorrect information provided in the response to Question II.2 of the import 
licensing questionnaire (WT/ACC/CGR/7, Annex 2).  The correct answer is that licensing requirements are the same for  products coming from all countries, including countries that have 
bilateral free trade agreements with Serbia and Montenegro. 
Question 63 
In response to Question III.2(a) of the im port licensing questionnaire (WT/ACC/CGR/7, 
Annex 2), Montenegro explains that "In general, … licenses and approvals are issued in a period 
not exceeding 30 days…" 
Please describe what circumst ances might require longer than a 30 days approval period.  WT/ACC/CGR/10 
Page 22  
 
  Answer
: 
Article 23 of the Law on Foreign Trade prescribes very precise timeline for issuance of licenses for 
import, export and transit: 
Article 23 
Time Limits to Decide on Licence Applications 
 (1) The period for processing applications for Import, Transit, or Export licenses shall 
not exceed 15 days as of the day of application if applications are considered as and when received, i.e. on a first-come first-served basis. 
 (2) Such period shall not exceed 30 da ys if all applications are considered 
simultaneously, where such period shall begi n to run on the day following the closing 
date of the announced application period. 
Under the Law on Foreign Trade, there are no circ umstances under which  the maximum period of 30 
days for issuance of a li cence to be exceeded.  
Question 64 
Please describe the legal and practical diff erences between import licensing and import 
approvals. 
Answer
: 
A "license" in Montenegrin usage is  a non-automatic licence in WTO terms, while an "approval" is an 
automatic licence. 
Question 65 
According to table III.3 in Question Part VI I.1 of the import licensing questionnaire, 
(WT/ACC/CGR/7, Annex 2), import licenses from the Ministry of International Relations and 
European Integration are valid for three months, li censes from the Ministry of Health are valid 
for one to four months, and approvals from th e Ministry of Agriculture, Forestry and Water 
Management are valid for two months.   
- Are these duration periods correct?   
- If so, why are the licenses issued for such a short period of time?  
- If a company wants to import a product that requires a licence for an entire calendar 
year, does this mean they need to apply repeatedly for a licence in a single year?  
- Has Montenegro considered extending the validity of a licence to at least a year? 
In light of the fact that it takes most ministries 30 days to issue licence, this short validity period 
seems particularly burdensome and a substantial co nstraint on trade.  We strongly encourage 
Montenegro, at the very least, to consider extending the validit y period on all licenses to one 
year. 
Answer : 
The Ministry of International Economic Relations  and European Integration has begun discussions 
with all relevant state authorities in order to harmonize the procedures for issuing licenses and bring 
them into conformance with the Law on Foreign Tr ade.  Under Article 27 of the Foreign Trade Law,  WT/ACC/CGR/10 
 Page 23 
 
 
  licenses are valid for the period specified in the licence up to a maximum period of one year.  The 
number of shipments during period of validity of licence is not limited. 
Question 66 
In response to Question VII.2 of the import licensing questionnaire (WT/ACC/CGR/7, Annex 2) 
Montenegro confirms that there is no penalty for non-utilization of licenses.  Montenegro 
further states that "The same applies for other measures."  Please explain what "other 
measures" are referred to here. 
Answer : 
The meaning of the statement was that under the Montenegrin legal system, there is no penalty for 
non-utilization of any sort of licence, approval, individual act etc. 
Question 67 Apart from Tobacco, Energy and Medicines, are there any other activities that are under an 
activity licensing system in Montenegro?  
Answer
: 
No.  (g)  Other border measures Question 68  
We are reviewing Montenegro's new TBT and SPS laws, as well as all relevant laws on 
genetically modified organisms, and updates to th e reform of Montenegro's  system of technical 
regulations, standards, and related inspections and certifications, and will provide comments.  
We encourage Montenegro to develop laws and procedures that are consistent with the WTO 
TBT and SPS Agreements. 
Regarding the response to Question 129 of WT/ACC/CGR/7, we are concerned about the 
consistency of Article 20 of the Foreign Tr ade Law and Law on Ge netically Modified 
Organisms with the WTO SPS Agreement.  Plea se explain how Montenegro determines that 
pesticides, chemicals, and genetically modified  organisms are considered potentially dangerous 
for human, animal, or plant health and if such determination is developed from a science-based 
risk assessment.  In general, we would note that any measure that is based on GATT Articles XX and XXI should also be comp liant with the WTO SPS and TBT Agreements. 
Answer
: 
Pesticides are highly poisonous substances that may be  used for purposes other than agriculture, and 
therefore their import is under a licensing regime to  ensure that only legal persons fulfilling conditions 
regarding facilities, equipment and personnel will im port them for agriculture purposes.  Fertilizers 
are also dangerous since most may be used for purposes other than for agriculture.  For example, 
ammonium nitrate is both a fertilizer and a natura l explosive, and as such is dangerous for human 
health (in accordance with the UN Secu rity Council Resolution No. 1540).  
Regarding GMOs, Montenegro applies the Law on Genetically Modified Organisms (FRY OG 
No. 21/00) and its by-laws. The Law regulates the ma nner of marking agriculture and food products WT/ACC/CGR/10 
Page 24  
 
  originating from GMOs.  The Law also regulates c onditions for limited usage,  production and placing 
into circulation of GMOs and their products, as well as conditions and measures for prevention and 
removal of their negative effects.  That means ri sk assessment for human health, animal and plant 
health of introduction of GMOs into environment.  
Montenegro is planning to change the Law on Gene tically Modified Organisms.  The draft Law on 
Amendments and Modifications of the Law on Gene tically Modified Organisms will be submitted as 
soon as it becomes available.  
Question 69 
Regarding the response to Question 130 of WT/ ACC/CGR/7, please explain the rationale for 
requiring an import permit for genetically mo dified organisms (GMOs).  Please confirm that 
the Ministry of Agriculture, Forestry, and Water Supply is the competent authority that 
regulates GMOs.  The Law on GMOs requires the import permit for GMOs, and CITES guides the permits for flora and fauna.  Does CI TES specifically require import permits for 
biotechnology products?  If not, what do mestic law requires permits for biotechnology 
products.  
Answer
: 
We confirm that the Ministry for Agriculture, Forestry and Water Supply of the Republic of 
Montenegro is the competent authority for GMOs, applying the Law on Genetically Modified Organisms (FRY OG No. 21/00) and its by-laws.  Montenegro is planning to amend the Law on 
Genetically Modified Organisms in order to provide  full WTO compliance.  We will provide the text 
of the draft Law on Changes and Amendments of the Law on Genetically Modified Organisms as 
soon as it becomes available.  
The CITES Convention requires import, export and tr ansit permits only for particular plant and 
animal species.  The list of all animal and plan t species subject to CITES Convention is included in 
the Decision on Control list which is ava ilable through document WT/ACC/CGR/11.   
The new Law on Plant Protection in Chapter 6 governs circulation and usage of biotechnology 
products that are used for plant protection purposes.   Biotechnology products may be imported subject 
to an import licence issued by the Ministry of Ag riculture with prior consent of the Ministry for 
Environment Protection.  For details on this, please find the Law on Plant Protection which is 
available in document WT/ACC/CGR/11.  Please refe r to document Legislation.  More detailed 
provisions will be prescribed in by-laws.  
Question 70 
Please provide an update on progress in reforming your systems to be fully compliant with TBT 
and SPS. 
Answer
: 
TBT:  New WTO compliant TBT laws were passed  by the State Union in 2005.  These are: the 
Standardization Law (SM OG No. 44/05), the A ccreditation Law (SM OG No. 44/05), the Law on 
Technical Requirements for Products and Confor mity Assessment of Products with Prescribed 
Requirements (SM OG No. 44/05) and the Law on Metrology (SM OG No. 44/05).  Montenegro is currently working on a draft law for enforcement of th is legislation, which is expected to be passed 
soon.   WT/ACC/CGR/10 
 Page 25 
 
 
  SPS measures:  Montenegro passed the Plant Health Protection Law, the Law on Seeds and the Law 
on Seedlings on 18 April 2006.  The Law on Plant Health Protection is available through document WT/ACC/CGR/11. 
Montenegro is currently drafting a Fertilizers Law and a Pesticides Law, with enactment planned by 
September 2006.  We will submit both laws  as soon as they become available. 
The draft Law on Plant Varieties has been finalized  and sent to UPOV for review.  As soon as UPOV 
returns the comments, Montenegro will commence the enactment procedure.  We will submit the text 
of the Law as soon as it is passed.  
The draft Law on Food Safety is in process of initia l drafting and its passage is planned for end of 
2006.  We will submit the Law as soon as it becomes available. 
The Veterinary Law was passed in 2004, but since th ere are some WTO inconsistencies, Montenegro 
has drafted amends that will ensure full WTO comp liance.  We will submit the amended Law as soon 
as it becomes available. 
(h) Customs valuation 
Question 71 
In response to Question 4 of Annex 3 of WT/ACC/CGR/7, Montenegro states that Article 36 of 
the Customs Law provides:  "No person permanentl y established or residing in the territory of 
the Republic [of Montenegro] shall be requested to enable inspection or allow access to any of 
his accounts or other records for the purpose of determining computed value."  Under 
Article 6.2 of the WTO Valuation Agreement, this prohibition is applied to non-residents of the 
territory of importation.  Please confirm th at this provision applies to non-residents. 
Answer
: 
Apparently there is an error in translation.  Unde r Article 36, paragraph 2 of the Customs Law, in the 
original language of the Law, "it is prohibited to request the person who does not have corporate 
domicile or the residence in the territory of the Re public to allow inspection or allow access to any of 
his accounts or any other records for the purpose of determining computed value.  "  This provision is 
applicable to non-residents only and is compliant wi th Article 6.2 of the WTO Valuation Agreement.  
Montenegro apologizes for the error.  
Question 72 
In response to Question 9 of Annex 3 (WT/ACC/CGR/7), Montenegro states that under 
Paragraph 3 of Article 8 of the Customs Law an importer may appeal a decision of the customs 
authority.  Does this provision encompass the right to appeal without penalty to an independent 
judicial authority -  not merely the right to an  appeal process within the customs authority - as 
required by Paragraph 2 or Article 11 of the WTO Valuation Agreement? 
Answer : 
Under the Law on Administrative Disputes (RM Official Gazette No. 60/03), any final administrative 
decision can be appealed to the Administrative C ourt or the Supreme Court of Montenegro, as the 
case may be.  Any person who believes that his/hers  right are violated by a final administrative 
decision, including the final decision of the customs au thority, has the right to appeal to the competent 
Court. There is no penalty for such an appeal. WT/ACC/CGR/10 
Page 26  
 
  Question 73 
When does the Government intend to amend th e Decree on Implementation of the Customs 
Law to include the remaining Interpretive Notes that are not in either the Law on Customs or 
the Decree? Please provide a copy of the legi slation and interpretative notes in English. 
Answer
: 
Amendments of the Customs Law and Decree for its Implementation that will provide full WTO 
compliance, including all Interpretive Notes, have be en prepared.  Montenegro  expects to enact these 
amendments by September 2006.  We will submit texts of both documents as soon as they are passed. 
(l) Rules of origin 
Question 74 
In response to Question 147 of WT/ACC/CGR/7,  Montenegro states that administrative 
determinations concerning origin are "valid for two years following the date of issuance."  The 
provisions of Article 2(h) and Para 3(d) of Annex II of the WTO Agreement on Rules of Origin stipulate that such determinations "shall remai n valid for three years provided that the facts 
and conditions, including the rules of origin , under which they have been made remain 
comparable."  How will Montenegro ensure that its administrative determinations on origin will 
comply with the WTO requirement that  they be valid for three years? 
Answer
: 
The Decree on Implementation of the Customs Law pr escribes that binding information ceases to be 
valid two years after its issuance.  We will change  this provision prior to WTO accession in a manner 
that that will be fully compliant with the WTO Agreement on Rules of Origin which prescribes that 
this information is valid for three years.   
2.  Export Regulation 
(c) Export quotas  Question 75 We note that Montenegro provides for (but do es not appear to currently apply) quantitative 
export restrictions under certain circumstances (WT/ACC/CGR/3 page  58).  Can Montenegro 
list the products on which it has imposed such  restrictions, the WTO justification for such 
measures, and provide more details on criteria used to allocate quotas?  
Answer
: 
The Law on Foreign Trade in Articles 15-19 prescrib es that quantitative export restrictions may be 
imposed only under strictly WTO-compatible condi tions.  Currently, no goods are under quantitative 
export restrictions, and none are contemplated.  WT/ACC/CGR/10 
 Page 27 
 
 
  Article 15 
Requirements 
 The Government may impose quan titative restrictions on exports: 
 1) In case of critical shortages of products essential to the Republic, or for the relief of 
consequences of such shortages; or 
 2) In order to protect exhaustible natural recourses, if export restrictions are applied 
simultaneously with restrictions on domestic production or consumption. 
3. Internal policies affecting foreign trade in goods 
(a)  Industrial policy, including subsidy policies Question 76 
We note that Montenegro has stated it provid es few subsidies to industry in order to assist 
enterprises to restructure and privatise.  Can Mo ntenegro list the sectors/industries to which tax 
incentives are provided? 
Answer
: 
Detailed information on industrial subsidies is prov ided in the Subsidies Notifications for 2004 and 
2005, which is provided in document WT/ACC/CGR/15. 
Question 77 
Please update the Working Party on subsidies in  Montenegro in line wi th the WTO Agreement 
on Subsidies and Countervailing Measures (ASCM). 
Answer : 
Detailed information on industrial subsidies is prov ided in the Subsidies Notifications for 2004 and 
2005, document WT/ACC/CGR/15. 
(b) Technical regulations and standards 
Question 78 Regarding the response to Question 169 of WT/ACC/ CGR/7, Annex 4 is quite an extensive list 
of products subject to quality control.  Please ad d a column to the right of each tariff line that 
explains what type of import quality control me asure is taken.  Are these same quality control 
measures also applied to domestic products?  At  what point in the stream of commerce are the 
quality control measure applied to domestic products? 
Answer
: 
Montenegro has abolished the Law on Quality C ontrol for Imported Agriculture and Food Products 
and its by-laws, and therefore the above mentione d list of products subject to quality control is no 
longer valid.  With these changes, quality control is  equal for domestic and imported products, and is 
applied at the retail level without any discrimination. WT/ACC/CGR/10 
Page 28  
 
  Question 79 
Please update the Working Party on new laws being drafted at the Union level on 
standardization, technical regulations , conformity assessment and metrology. 
Answer
: 
New WTO compliant TBT laws were passed by th e State Union level in 2005.  These are: the 
Standardization Law (SM OG No. 44/05), the A ccreditation Law (SM OG No. 44/05), the Law on 
Technical Requirements for Products and Confor mity Assessment of Products with Prescribed 
Requirements (SM OG No. 44/05) and the Law on Metrology (SM OG No. 44/05).   
Montenegro is currently working on a draft law for enforcement of this legislation in Montenegro.  
(c) Sanitary and phytosanitary measures 
Question 80 
We continue to have questions regarding Mont enegro's plans to implement the SPS Agreement 
upon accession, and whether current laws and regul ations are science-based and in compliance 
with the SPS Agreement.  We recognize that Mont enegro may not be prepared to answer many 
of the questions that have been raised beca use they are in the process of providing an SPS 
check-list, as well as changes to SPS relevant laws and regulations to answer many of the 
questions that we raised.  We will reserve a dditional questions and comments for any new 
legislation.   
Regarding the response to Question 173 of WT/ ACC/CGR/7, what three tests are performed on 
poultry meat?  Are multiple tests done on all pr oducts?  Please explain, in detail, the testing 
process, including all requirements, the number of days to receive results, fees involved, etc.  
Does Montenegro have plans to consolidate this  process to make it less trade restrictive?   
Answer : 
We believe that our answer has been misunders tood.  There are no multiple tests for any goods 
(animal and plant origin) that are under the control of  the Ministry for Agriculture, Forestry and Water 
Supply.  In our answer to Question 173 from WT/ACC/CGR/7, we said that there are three 
laboratories in Montenegro, each of them performing sep arate type of testing.  What we wanted to say 
is that there is no single laboratory in Montenegro  that is equipped techni cally and capable of all 
controls of poultry meat and other goods of animal origin.  
The veterinary inspector, after receiving laborator y findings he requested, decides about further 
procedure with the shipment.  
Import, export and transit of shipments of animal origin is performed only at border crossings with 
organized border veterinary inspection.  The ve terinary inspector applies at the border following 
procedures:  
- Identification of the shipment 
- Inspection of veterinary and other documentation following shipment - Inspection of transport means; and 
- Visual inspection of the shipment (appearance, labelling, declaration…)  WT/ACC/CGR/10 
 Page 29 
 
 
  Each shipment of animals and animal products that is imported in Montenegro has to have a 
veterinary certificate on health status of the shipment issued by the exporting country and a decision confirming that there are no veterinary-sanitary ob stacles for import of shipment, issued by the 
Veterinary Administration of Montenegro.  
The importer is obliged, immediately after arrival of the shipment at the border, to submit a written 
request for inspection of the shipment.  After the veterinary inspector recei ves the request, he checks 
whether the importer has above mentioned decision is sued by the Veterinary Administration and the 
certificate issued by the exporting country, and subsequently begins the visual inspection of the shipment.  
For imports of live animals, the veterinary inspect or checks the above mentioned decision issued by 
the Veterinary Administration, the certificate issu ed by the exporting country and the decision on 
quarantine, inspects the animals and send the ship ment to the place designed for quarantine where 
animals are clinically examined.  
When inspecting a shipment of animal products, incl uding poultry, the veterinary inspector checks the 
above mentioned decision issued by the Veterinary Administration and the certificate issued by the 
exporting country, and performs a visual inspection of the shipment.  
When there is a need for further laboratory find ings and there are no facilities at the border for 
sampling, the inspector may give instruction to the ve terinary inspector in the place of warehousing to 
perform detail inspection and to take samples for analysis.  During this procedure, the shipment 
remains under customs supervision. 
After receiving the final results, the veterinary in spector approves the import and release of shipment 
or the bans import and requires that the shipment be returned or destroyed, at the option of the 
importer.  
When the inspector decides that there are no reasons for additional laboratory analysis, he approves 
the import and its release in free circulation, and the customs finalizes  the customs clearance 
procedures.  
All procedures which the inspector undertakes at th e border are performed without unjustified delay.  
The importer is informed about standard time requi red for finalization of each procedure and about all 
actions taken in accordance with principles of th e Law on General Administrative Procedure (RM OG 
No. 60/03):  principle of legality, principle of pr otection of citizens and public interest, efficiency, 
principle or accuracy, etc.  The veterinary insp ector applies other legal acts as well, such as the 
Veterinary Law (RM OG No. 11/04), the Law on Inspection Supervision (RM OG No. 39/03) and 
other legal acts.  
Fees for laboratory services (laboratory analysis) are prescribed by laboratories, and reflect the cost of 
the service rendered.  
The border veterinary inspector keeps the register  of all performed analyses, based on which he 
submits monthly and annual report to the Chief vete rinary inspector.  Based on data from the Annual 
Report for 2005, only 10 per cent of all imported shipments were subject to laboratory analysis.  
There are three laboratories involved in laboratory analysis of food products in Montenegro, all 
located in Podgorica: WT/ACC/CGR/10 
Page 30  
 
  Institute for public health of Mont enegro performs inspections of all aspects of health of shipments of 
animal origin including presence of residues (an tibiotics, hormones, heavy metals, pesticides, 
mycotoxines). 
The Center for ecotoxicology research of Monteneg ro (CETI) inspects food products at the request of 
the importer or exporter, provides certificates for new products to be released for circulation, or for 
export; and performs toxicology analyses regardi ng pesticides, dioxins and furans, vitamins, 
mycotoxins, antibiotics, hormones, radioactivity, etc.  
The Specialized veterinary laboratory performs la boratory analysis for presence of proteins in 
products of animal origin and at the mome nt is not capable of testing poultry. 
Montenegro is currently reviewing the Veterinary Law in order to provide full WTO compliance.  The 
text of the draft Law on Amendments and Changes of the Veterinary Law will be provided to WTO 
members as soon as it is available. 
Question 81 
Regarding the response to Question 178 of WT/ACC/CGR/7, do Montenegrin practices 
regarding inspection of the first shipment of all imported food products also apply to domestic 
products? We note that Annex C of the SPS Ag reement provides that all control, inspection, 
and approval procedures should be completed without undue delay and in a no less favourable 
manner than for like domestic products. 
Answer
: 
The first shipment of a new product or a product from a new producer into Montenegro is usually 
subject to full inspection and control in order to en sure that the shipment is safe for consumers in 
Montenegro.  Future shipments of the same product from the same facility are not subject to control 
unless an inspector, based on risk analysis, requires laboratory analysis.  Please note again that only 
10 per cent of all imported shipments of animal orig in were subject to laboratory control in 2005.  
In Montenegro, the procedure for domestic products to  be released in circulation for the first time is 
even more restrictive.  The domestic producer, in order to get approval for production, must perform 
three subsequent inspections-meaning that 3 produced contingents of particular product must be 
laboratory inspected in order to be  released into circulation.  
For details please see the answer to Question 80, above.  
Question 82 
The response to Question 178 of WT/ACC/CGR/7 indicates that if a shipment is infected with 
harmful organisms above the allowable limits, a ppropriate measures will be taken.  What are 
the allowable limits?  Please describe wh at "appropriate measures" may be taken. 
Answer : 
If an SPS inspection shows that a shipment is in fected with harmful organisms above established 
limits, or with some pathogen that may not be totally destroyed by disinfection or otherwise at the place of importation, or if the shipment is e xposed to a large number of secondary diseases, the 
inspector will not allow importation.  Instead, he will order for the shipment to be returned to sender 
or to be destroyed and at the same time he will order that measures preventing dissemination of 
disease be taken.    WT/ACC/CGR/10 
 Page 31 
 
 
  The Criteria for establishing of health condition of the crops and facilities, seeds, nursery plants and 
planting material are available through document WT/ACC/CGR/11.  
For details regarding veterinary measures please c onsult provisions of Articles 31, 32, 35 and 38 of 
the Veterinary Law.  
Question 83 
The response to Question 178 of WT/ACC/CGR/7  also states that under Article 31 of the 
Veterinary Law, products must have an internatio nal certificate.  It is unclear if Montenegro is 
referring to certificates from exporting count ries that show conformity with international 
standards or another certificate.  Please clarify and provide the Working Party with a translation of Veterinary Law (RM OG No. 11/04). 
Answer
: 
The certificate required under Article 31 of the Ve terinary Law and mentioned in the answer to 
Question 178 from WT/ACC/CGR/7 is the internationa l exporting country certificate required for all 
products of animal origin. 
Montenegro sent the Veterinary Law to the WTO for review in September 2005.  Question 84 Please provide an update on the status of the new Food Safety Law planned for enactment in 
2006, and the draft Law on Health Protection of Plants. 
Answer
: 
The Plant Protection Law was enacted on 18 April 2006 and is available through document 
WT/ACC/CGR/11.  The Food Safety Law is planned for enactment by the end of 2006.  
(e) State-trading practices Question 85 Please list and provide information on any en terprise falling within the definition of 
Article XVII of the GATT 1994 and the Understanding on this Article.  Such enterprises would include state-owned firms engaged in import and export activities, regardless of whether they 
have special privileges or a monopolistic status.   
Answer
: 
Montenegro has no enterprises falling within the de finition of Article XVII of the GATT 1994 and the 
Understanding on that article.  
(g) Free economic zones 
Question 86 
Regarding Montenegro's free zone/warehouse/economic zone, discussed in response to 
Question 188 of WT/ACC/CGR/7, does Montenegro  require that a minimum percentage of 
production be exported?   WT/ACC/CGR/10 
Page 32  
 
  Answer
: 
No. The Law on Free Zones does not require that a minimum percentage of production has to be 
exported.  Export performance is not a criterion for an y of benefits granted to enterprises operating in 
a free zone or free warehouse.  
Question 87 
We continue to have questions whether the forg iveness of import duties on goods imported into 
Montenegro which contain more than 50 per cent Montenegrin origin goods, as described in 
response to Questions 188 and 190 in WT/ACC/CGR/7, is a prohibited domestic content requirement.  We look forward to reviewing Mo ntenegro's Law on Free Zones, and encourage 
Montenegro to ensure that it is  fully compliant with the WTO. 
Has Montenegro reviewed its Law on  Free Zones in order to ensure that it is fully compatible 
with WTO rules? 
Answer
: 
The Government of Montenegro is reconsidering review of the Law on Free Zones at the moment. 
More detailed information will be submi tted as soon as it becomes available.   
(l) Government procurement practices Question 88 The reply to Question 193 of WT/ACC/CGR/7 states that "local competitive bidding" relates to 
"suppliers who have their seat or residency in Montenegro", but that "locally" is not related to nationality of supplier. What procedures must foreign suppliers undertake in order to have a 
seat or residency in Montenegro? 
Please provide an update on the status and ti metable for reviewing the Law on Government 
Procurement. 
Answer
: 
Domestic and foreign suppliers can participate in international procurement tenders on an equal basis 
without obligation to register company in Monteneg ro.  Foreign suppliers are obligated to register 
company as foreign company branch in Montenegro if they wish to participate in local tender 
procurement procedure.  Any foreign company opera ting a branch within the Republic of Montenegro 
is required to comply with the relevant provisions of the Business Organization Law. For details on 
registration of foreign companies branch, please see answer on question under (d) Foreign and domestic investment policies that refers to WT /ACC/CGR/7, Question 28. The draft Law on Public 
Procurement was approved by the Government and its passage by the Parliament is expected by the 
end of June.  WT/ACC/CGR/10 
 Page 33 
 
 
  4. Policies affecting foreign trade in agricultural products 
(a) Imports Question 89 We are glad to see that Montenegro plans to eliminate the special charges on certain 
agricultural imports, and to convert the special fe es into tariff equivalents.  We look forward to 
reviewing Montenegro's draft Law on Custom s Tariffs.  Could Montenegro provide the 
Working Party with an update as to the parliamentary status of that law?  
Answer
: 
The new Law on Customs Tariff, based on HS 2002,  was enacted on 7 December 2005.  The Law is 
available through document WT/ACC/CGR/11. 
Question 90 We note Montenegro's response to questions on  the "special charges" it applies on the 
importation of agricultural and food products.  The description on page 72 of WT/ACC/CGR/3 
indicates that the charges are applied periodically  to insulate domestic prices from world prices 
and to afford protection to domestic production .  If this is the case, such a measure would 
appear to be inconsistent with Agreement on  Agriculture and to be eliminated prior to 
accession.  We seek further clarification: How are the prices of imports taken into account when 
setting the level of special duties? 
Answer
: 
With enactment of the new Law on Customs Tari ffs, Montenegro has abolished the Decision on 
Special Fees and Charges on Food and Agriculture Produc ts.  What used to be called a special charge 
is now entered in the tariff schedule as a sp ecific duty, to be paid in addition to the ad valorem  duty.  
Under the new law, there are 319 tariff items that have both ad valorem  and specific duties.  
Question 91 
Are there price or volume thresholds at which impo rts are considered to affect domestic prices 
or production, and in relation to which the author ities have the discretion to decide to impose a 
special levy on imports or adjust the level of such a levy? 
Answer : 
Under the new Law on Customs Tariffs, the imposition of specific duties is not discretionary and does 
not depend on price or volume thresholds.   
Question 92 
Do the special duties listed in Annex 10 of WT/ACC/CGR/3/Add.1 represent the maximum 
levels of the special duties which may be applied, or the special duties currently applied? 
Answer : 
Please see the answer above. WT/ACC/CGR/10 
Page 34  
 
  (e)   Internal policies 
Question 93 With respect to Montenegro's agriculture policy go als, would Montenegro be able to provide 
further information on the nature or form of th e policies that are used for "exporting specific 
domestic products"?  For instance, are any of the items included in the budgetary expenditures 
in Table IV.7 related to this priority (WT/ACC/CGR/3 page 74)? 
Answer
: 
Please see the answer to Question II.2(a)2, above.  In  Table IV.7, the relevant program is listed under 
position 53: "Improvement of market position of Montenegrin agriculture products".  
Question 94 
We note that Montenegro does not apply expo rt subsidies in agriculture and accordingly 
request that it bind export subsidies at zero upon accession. 
Answer : 
Montenegro will bind all export subsidies at zero upon accession.  
Question 95 
Supporting Table DS:1: We note that there is a large increase in marketing and promotion 
services between 2002 and 2003 (from € 150,830 to € 2, 220,000).  We note that the bulk of this 
increase is from the organisation of national  campaign for promotion of Montenegrin 
agricultural products.  Can Monteneg ro give details of this program. 
Answer : 
The Ministry of Agriculture, Forestry and Wate r Supply through the program ''Improvement of 
Market Position of Montenegrin Agriculture Products '' promotes domestic products through fairs  and 
exhibitions, the campaign ''MADE IN MONTENEG RO'', improvement and construction of market 
infrastructure, and other promotion activities. The program also includes a new system of milk payment based on quality, which is obligatory for all milk producers in Montenegro, in order to 
improve milk quality.  For this purpose Montenegro  expends from 1.2 to 1.3 million Euros per year, 
which is the largest expenditure in this budget line. 
Question 96 
Support Table DS:7: We note that for tobacco, the non-exempt direct payments increase from 
46,016 in 2002, to 90,000 in 2003, to 150,000 in 2004.  Can Montenegro explain what these increased funds went towards? 
Answer
: 
The Ministry of Agriculture, Forestry and Water s ubsidizes production of tobacco by providing € 0.46 
to € 0.61 per kg  of processed (dried) tobacco, de pending on class of quality.  It is important to 
underline that the subsidy per kg has not increased.  The increase in total subsidy is due to increased 
production: in 2004 year in rela tion to 2003 year production increase from 308 tons in 2003 to 506 
tons in 2004 (64 per cent increase) and to 636 tons in 2005, an increase of 26 per cent.   WT/ACC/CGR/10 
 Page 35 
 
 
  Question 97 
Supporting Table DS:9: We note that Monteneg ro has set up an agricultural financial 
institution to enable coordinated provisions of  loans to farmers under favourable conditions.  
Can Montenegro provide further information of what the terms and conditions of such loans 
are. 
Answer : 
At the beginning of 2000, Montenegro accepted pr oposal, together with members of the French 
banking network Credit Mutual, to establish a fina ncial institution to provide credit to farmers. 
However, the French partner gave up of this project  and Montenegro did not realize this program.  In 
the 2003 agriculture budget there was a program of to  subsidize the interest on agricultural loans in 
amount € 120,000 because of unfavourable commercial conditions (short durations  and high interest 
rates) for farmer credits.  This program has been  abolished  and at present Montenegro, using donors' 
assets, provides only limited support for some investme nts in primary production as part of a policy of 
rural development.  
5.  Policies affecting foreign trade in other sectors 
(b)  Policies affecting foreign  trade in other major sectors 
Question 98 Montenegro has explained that it does not appl y policies affecting foreign trade in other major 
sectors, except in State trading enterprises for certain goods.  It refers to Annex 6 of 
WT/ACC/CGR/3 Add. 1, which states that it has no State trading enterprises within the definition of GATT Article XVII.  Neverthe less, we would be interested to know what 
State trading enterprises Montenegro does have and what sectors they operate in. 
Answer
: 
Montenegro has no State trading companies, in any sector.  Of those formerly State-owned companies 
that still have an element of State ownership (details of which are available through document 
WT/ACC/CGR/13.  Please refer to document Privati zation Report), none has "exclusive or special 
rights or privileges, including statutory or constitutional powers, in the exercise of which they 
influence through their purchases or sales the level or direction of imports or exports."  Similarly, no 
privately-owned companies have such special rights or privileges. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
1. General (b) Responsible agencies for policy formulation and implementation 
Question 99 
The reply to Question 202 of WT/ACC/CGR/7 states that various administrative responsibilities 
for intellectual property rights remain to be precisel y defined in legislation.  Has this been taken 
into account in the Law on the Enforcem ent of Intellectual Property Regulations? WT/ACC/CGR/10 
Page 36  
 
  Answer
: 
Yes.  The Enforcement Law was enacted on 21 June  2005.  Relevant articles of the Penal Code were 
approved by Government on 13 April 2006, and are expected to pass Pa rliament in the near future.  
As soon as they are approved, detailed information will be provided.  The Law on Optical Discs is in 
final drafting stage and its enactme nt is planned for June 2006.  
(c) Membership of international intellectua l property conventions and of regional or 
bilateral agreements 
Question 100 We understand that both the Geneva Phonogr ams Convention and the Brussels Satellite 
Convention are already binding in Montenegro , as explained in response to Question 203 of 
WT/ACC/CGR/7.  Will Montenegro please provide  the Working Party with the appropriate 
domestic legislation implementing these international agreements?   
Answer
: 
Because these Conventions are dir ectly enforceable, have been publis hed in the Official Gazette like 
any other domestic legislation, are an integral pa rt of the domestic legislation, and take precedence 
over any domestic law or regulation in case of conflic t, Montenegro believes th ere is no need to enact 
any additional domestic legislation in order to implement these Conventions.  
In addition, Article 28, paragraphs  4 - 6, of the Law on Copyright and Related Rights regulate satellite 
broadcasting, while Articles 121-125 provide for the protection of phonogram producers. 
Question 101 
In the response to Question 219 of WT/ACC/CGR /7, Montenegro explains that there is no 
reference to "appropriate remuneration" in any part of the Law on the Protection of Integrated 
Circuit Topography of 1 January 2005 (Official Gazette No. 61 of Serbia and Montenegro of 24 December 2004).  However, in WT/ACC/CGR/3 /Add.2, Montenegro submitted that law, 
Article 20 of which provides as follows (emphasis added): 
 
 Article 20 
  Any person, who at the time of the acquisition of the integrated circuit did not 
know or that could not have known that the product contained protected topography covered by the exclusive right,  shall not be prohibited to use such 
product. 
  After the time that the person referred to in paragraph 1 of this Article has 
received sufficient notice that there is an  exclusive right  with respect to the 
protected topography, the right holder shall be entitled to the appropriate 
remuneration for such use established by the court, if not negotiated by 
interested parties. 
  The provisions of paragraphs 1 and 2 of this Article shall be applicable to legal 
successors of the person that acquired an integrated circuit covered by the 
exclusive right.  WT/ACC/CGR/10 
 Page 37 
 
 
  Is the document submitted by Montenegro on 8 March 2005 (in WT/ACC/CGR/3/Add.2) the 
final version of the law or a draft?  If this quote  is from a draft of that law, could Montenegro 
please provide the Working Party with the final versi on.  If this quote is from the final version, 
please explain how "appropriate remuneration" is calculated. 
Answer : 
As it was pointed out in the response to Question 219 of WT/ACC/CGR/7, the final version of the 
Law, as passed by the Parliament, does not make re ference to appropriate re muneration.  Apparently, 
the translation that was submitted in WT/ACC/CGR/3/A dd.2 was not that of the final text of the Law. 
Montenegro apologizes for the mistake. 
The Law on Protection of Topographies of Integrated Circuits, as passed by the Parliament of Serbia 
and Montenegro, is available through WT/ACC/CGR/11.   This is the final version and all future 
references should be made to this version only.  
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(c) Geographical indications, including appellations of origin 
Question 102 
We would like to re-state our previous questions/comments concerning geographical 
indications, submitted 8 July 2005.  We l ook forward to reviewing the new Geographical 
Indications Law; however, we note that th ere is no mention of the Law on Geographical 
Indications in the Legislative Action Plan, provided in response to Question 73 of WT/ACC/CGR/7.  Please provide the Working Party with an update as to this status of this 
legislation.  
Answer
: 
The Council of Ministers of Serbia and Monteneg ro has approved the draft Law on Indications of 
Geographical Origin, which is pending passage by th e Union Parliament.  The Draft is available 
through document WT/ACC/CGR/11. 
(h) Requirements on undisclosed information,  including trade secrets and test data 
Question 103 Please provide an update on legislation with respec t to trade secrets, referred to in the answer to 
Question 134 of WT/ACC/CGR/7.  
Answer
: 
The work is still in its preparatory phase. Informa tion on further developments  will be provided to the 
Working Party as soon as it becomes available. WT/ACC/CGR/10 
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  4. Enforcement 
(a) Civil judicial procedures and remedies Question 104 Regarding Question 223 of WT/ACC/CGR/7, could Montenegro please identify the provisions 
in its trademark, copyright and patent laws  that address calculation of damages and pre-
established damages?  In addition, please explai n how damages are calcul ated in cases involving 
undisclosed information or trade secrets. 
Answer
: 
Under the Law on Contracts and Torts the purpose of compensation is to restore the situation that 
existed before the damage was done.  The same princi ple applicable to IP legislation.  Compensation 
for damages suffered in case of infringement is based  on direct damage and lost profit, if any,  
including taking into consideration remuneration th at would have been payable had the right been 
used lawfully.  When filing the case, the plainti ff specifies the amount of damages and submits the 
evidence to support the claim.  If the defendant obj ects to the amount, the of damages is performed by 
a Court appointed expert.   
In addition, The Law on Copyright and Related Ri ghts (Article 178), the Patent Law (Article 93, 
paragraph 2) and the Trademark La w (Article 57, paragraph 3) provi de for pre-established damages.  
Where the infringement was intentional or the result  of gross negligence, the plaintiff may chose to 
claim pre-established damages in an amount equa l to up to three time the amount of usual 
remuneration that would have been paid had the right  been used lawfully.  "Usual remuneration" is 
understood to mean the amount payable by the user of the right to the right holder for the lawful use 
of the right in the usual (normal) course of trad e (retail  price, licence fee or the like, as the case may 
be). 
The same principles are used in  the cases involving undisclosed information or trade secrets. 
Question 105 
Regarding Question 225 of WT/ACC/CGR/7, pl ease provide the Working Party with the 
relevant law that governs provisional measures and the ordering of provisional measures 
inaudita altera parte relating to trademarks, copyrights, patent and undisclosed information. 
Answer : 
Provisions governing provisional measures and the ordering of provi sional measures inaudita altera 
parte relating to trademarks, copyrights and patents are the following: 
- Articles 62 and 63 of the Trademark Law; 
- Articles 183 and 184 of the Law on Copyright and Related Rights; and 
- Articles 94 and 95 of the Patent Law. 
There are no specific provisions that govern provisional measures with respect to undisclosed 
information.   WT/ACC/CGR/10 
 Page 39 
 
 
  Question 106 
Regarding Question 232 of WT/ACC/CGR/7, plea se identify the provision that provides 
Montenegrin Customs the power to take ex officio action. 
Answer : 
The provision that provides Montenegrin Customs the power to take ex officio action is Article 11 of 
the Regulation on Actions of the Customs Authority Applicable to Goods Suspected of Infringement 
of Intellectual Property Rights (Regulation on IP Border Measures) (RM OG No. 25/05). 
Question 107 
Regarding Question 235 of WT/ACC/CGR/7, we l ook forward to responses to the questions 
concerning criminal procedures upon passage of the amendments to the Penal Code. 
Answer : 
The amendments to the Penal Code are still pending passage before the Parliament.  As soon as they 
are approved, detailed info rmation will be provided. 
VI.  TRADE-RELATED SERVICES REGIME 
1.  General 
Question 108 
Please report on the status and timetable for the draft Insurance Law that will liberalize the 
area of legal entities and insurance. 
Answer : 
The draft Insurance Law passed Government on 24 November 2005 and its pending passage before 
the Parliament.  It is planned to be enacted by the end of June 2006. 
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