RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CPV/5 
8 November 2005 
 (05-5237) 
Working Party on the 
Accession of Cape Verde  
 
 
    
DRAFT REPORT OF THE WORKING PARTY 
ON THE ACCESSION OF CAPE VERDE 
TO THE WORLD TRADE ORGANIZATION 
 
 
   WT/ACC/SPEC/CPV/5 
 Page i 
 
 
 TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................2  
- Monetary and Fiscal Policy..................................................................................................... .2 
- Foreign Exchange and Payments ............................................................................................3  
- Investment Regime.............................................................................................................. ......5  
- State Ownership, Privatization and State-Trading Entities .................................................7  
- Pricing Policies ............................................................................................................... .........11  
- Competition Policy............................................................................................................. .....13  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................13  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................17  
- Trading Rights ................................................................................................................. .......17  
A. IMPORT REGULATIONS....................................................................................................21  
- Ordinary cust oms duties ........................................................................................................ 21 
- Other duties and charges....................................................................................................... .23 
- Tariff rate quotas, tariff exemptions.....................................................................................24  
- Fees and charges for services rendered.................................................................................24  
- Application of internal taxes to imports ...............................................................................26  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............28  
- Customs valuation.............................................................................................................. .....32  
- Rules of origin ................................................................................................................ .........36  
- Other customs formalities ...................................................................................................... 37 
- Preshipment inspection ......................................................................................................... .38 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................39  
B. EXPORT REGULATIONS ...................................................................................................39  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........39  
- Export rest rictions ............................................................................................................ ......39  
- Export subsidies ............................................................................................................... .......40  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................41  
- Industrial policy, including subsidies....................................................................................41  
- Technical barriers to trade, standards and certification.....................................................43  
- Sanitary and phytosanitary measures...................................................................................45  WT/ACC/SPEC/CPV/5 
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 -
 Trade-related investment measures ......................................................................................48  
- Free zones, special economic areas........................................................................................48  
- Government procurement......................................................................................................50  
- Transit........................................................................................................................ ..............51  
- Agricultural policies.......................................................................................................... ......51  
(a) Imports........................................................................................................................ .............51  
(b) Exports........................................................................................................................ .............52  
(c) Internal policies.............................................................................................................. .........52  
- Trade in ci vil aircraft........................................................................................................ ......52  
- Textiles regime ................................................................................................................ ........53  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................53  
- GENERAL........................................................................................................................ .......53  
- Industrial property protection...............................................................................................53  
- Responsible agencies for policy formulation and implementation .....................................54  
- Participation in international intellectual property agreements ........................................54  
- Application of national and MFN treatment to foreign nationals......................................55  
- Fees and taxes................................................................................................................. .........55  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ...........................................................................55
 
- Copyright and related rights..................................................................................................5 5 
- Trademarks, including  service marks...................................................................................56  
- Geographical indications, including appellations of origin.................................................57  
- Industrial designs............................................................................................................. .......57  
- Patents........................................................................................................................ ..............57  
- Plant variety protection....................................................................................................... ...58 
- Layout designs of integrated circuits ....................................................................................58  
- Requirements on undisclosed information, including trade secrets and test data............58  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS......................................................................................................................... ..........59  
- ENFORCEMENT...................................................................................................................5 9 
- Civil judicial procedures and remedies.................................................................................59  
- Provisional measures ........................................................................................................... ...60 
- Administrative procedures and remedies.............................................................................60  
- Special border measures........................................................................................................ .60 
- Criminal procedures............................................................................................................ ...60 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................61   WT/ACC/SPEC/CPV/5 
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 VII. TRANSPARENCY .................................................................................................................64  
- Publication of information on trade......................................................................................64  
- Notifications.................................................................................................................. ...........65  
VII. TRADE AGREEMENTS .......................................................................................................65  
CONCLUSIONS .................................................................................................................... ..............66  
ANNEX .......................................................................................................................... .......................67  
 
  WT/ACC/SPEC/CPV/5 
 Page 1 
 
 
 I. INTRODUCTION 
1. The Government of the Republic of Cape Ve rde applied for accession to the World Trade 
Organization in November 1999.  At its meeti ng on 17 July 2000, the General Council established a 
Working Party to examine the application of the Government of Cape Verde to accede to the World 
Trade Organization (WTO) under Article XII of th e Marrakesh Agreement establishing the WTO.  
The terms of reference and the membership of the Working Party are reproduced in document 
WT/ACC/CPV/2/Rev.[4]. 
2. The Working Party met on 26 March and 8 D ecember 2004; 14 July 2005 and ……….. under 
the Chairmanship of Mr. D. Shark (United States). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Cape Verde (WT/ACC/CP V/3), the questions submitted by Members on the 
foreign trade regime of Cape Verde, together with  the replies thereto, and other information provided 
by the authorities of Cape Verde (WT/ACC/CPV/4; WT/ACC/CPV/5; WT/ACC/CPV/6; WT/ACC/CPV/7; WT/ACC/CPV/8; WT/ACC/CPV/9 and Revision 1; WT/ACC/CPV/10 and 
Revision 1; WT/ACC/CPV/11 and Revision 1; WT/ACC/CPV/12 and Revision 1; WT/ACC/CPV/13 
and Revision 1; WT/ACC/CPV/14 and Revision 1; WT/ACC/CPV/15; WT/ACC/CPV/16; WT/ACC/CPV/19; WT/ACC/CPV/20; WT/ACC/CPV/21; WT/ACC/CPV/22; WT/ACC/CPV/23; ………), including the legislative texts and other documentation lis ted in Annex I.  
INTRODUCTORY STATEMENTS 
4. The representative of Cape Verde said that desp ite Cape Verde's limited natural resources and 
production base and other constraints faced as a least  developed country (LDC), his country had over 
the past 15 years undertaken measures that had libera lized its economy to foster growth and facilitate 
trade integration.      
5. In view of the Guidelines established by th e General Council (WT/L/508), and bearing in 
mind Cape Verde's current status as an LDC, the representative of Cape Verde called on Members of 
the Working Party to expedite and be flexible in the negotiations to establish Cape Verde's WTO 
commitments and to extend special and differential treatment as foreseen in the provisions of the 
WTO Agreements regarding LDCs.  Technical assi stance and transition periods were needed to 
implement some WTO commitments.  In this rega rd, Cape Verde sought support in the areas of 
intellectual property, mediation and arbitration, agriculture, food safety, sanitary and phytosanitary WT/ACC/SPEC/CPV/5 
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 measures, protection of human health, flora and fauna, technical barriers to trade, and customs 
procedures.  He added that the United Nations Gene ral Assembly had taken note of the Economic and 
Social Council's recommendation to graduate Cape Verde from the group of LDCs (Resolution 
A/RES/59/210 of 20 December 2004).  Consequently, Cape Verde would no longer be classified as an 
LDC as from [December 2007]. 
6. Members of the WTO welcomed Cape Verde's application to join the Organization.  
Appreciating the efforts already undertaken by Ca pe Verde to achieve compliance with WTO rules 
and principles, some Members noted that further wo rk was needed.  In this regard, Members pledged 
to work constructively with Cape Verde.  Some  Members indicated that they had, and would, 
continue to offer technical assistance to facilitate  Cape Verde's accession.  Members looked forward 
to Cape Verde's early accession on appropriate term s.  Some Members referred to Cape Verde's 
current status as a least-developed country, and in keeping with the guidelines on LDCs' accessions, 
would consider this a relevant factor in establishing Cape Verde's terms of accession. 
7. The Working Party reviewed the economic polici es and foreign trade regime of Cape Verde 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by 
Members of the Working Party on the various aspects of Cape Verde's foreign trade regime, and on 
the terms and conditions of Cape Verde 's accession to the WTO, are summarized below in paragraphs 
8 to [...]. 
II. ECONOMIC POLICIES  
- Monetary and Fiscal Policy 
8. The representative of Cape Verde said that the Bank of Cape Verde (BCV) fulfilled the role 
of the central bank and in accordance with Law No . 10/VI/2002 of 15 July 2002, worked with the 
Government in defining and executing monetary  and exchange policies, and in guiding and 
supervising the monetary, financial, and exchange markets.  The BCV functioned to maintain price 
stability whilst simultaneously regulating Cape Verd e's money supply.  In its latter function, its 
powers were limited because the Cape Verdean Escudo (CVE) was pegged to the Euro (€) and 
secured by the Government of Portugal.  
9. In the framework of reforms initiated in  1993, the BCV had abandoned administrative 
methods of monetary controls in 1999, in particul ar the use of administrati vely established interest 
rates and credit limits.  Regulation of monetary policy was currently achieved through open market 
operations, variations in the cash reserve coefficients , and adjustments in the BCV's rediscount rate.    WT/ACC/SPEC/CPV/5 
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 10. As for the financial sector, the Constitution of Cape Verde had been amended in 1989, 
removing banking activities from the exclusive control of the State (Law No. 52/III/89).  Cape Verde 
currently had four commercial banks, with a to tal of 35 branches, and a few parabanking and 
international financial institutions.  BCV as the cen tral bank continued to licence qualified banks and 
other financial institutions to increase competition and to promote the development of a competitive 
financial sector. 
11. The Government's fiscal program sought to expand the provision of key social services, 
develop Cape Verde's infrastructure, and foster pr ivate sector-led economic growth, while maintaining 
overall fiscal discipline.  Cape Verde's fiscal perfo rmance had improved in 2001.  Currently, the fiscal 
deficit had been targeted to remain at 3 per cen t of GDP (CVE 2.2 billion), having declined from 
19 per cent of GDP in 2000.  Fiscal policy was gear ed towards continuing th is consolidation.   
12. With regard to the taxation regime, Cape Verd e had initiated reforms in  1991.  Prior to 1991, 
complex administrative procedures had been used to  calculate and estimate taxes, tax fraud, and tax 
evasion.  One of the objectives of the reform progr am, outlined in the Development Plan (III PND), 
was to endow Cape Verde with a modern, adequate , simple and efficient taxation system.  The new 
system allowed the State to collect more revenue, es tablish relatively moderate  taxes, and broaden the 
tax base to include public employees who previously did not pay taxes.  The program also included 
(i) the creation of a more effective collection system; (ii) collection of a Single Tax on Income for individual and collective persons (e.g.  partnerships and corporations) rather than the multiple taxes 
that existed previously; and (iii) the creation and application of a Single Property Tax to substitute 
various municipal property taxes.  Some constraints remained to be overcome, including the lack of 
adequate information on tax and fiscal obligations, the existence of a large number of undeclared 
taxpayers, and a lack of qualified personnel to administer the new system.   
13. As part of the ongoing reforms, his Government  had recently introduced amendments to the 
Single Tax on Revenue, primarily to update the tax brackets, accelerate tax liquidation, and authorize 
a fiscal census of taxpayers and enterprises.  Cape  Verde had adopted a Value Added Tax (VAT), as 
well as a Special Tax on Consumption (STC).  The representative of Cape Verde confirmed that VAT, STC, and the Environmental Tax were the only domestic taxes applied to imports and local 
production sold internally for domestic consumption.   
- Foreign Exchange and Payments  
14.  The representative of Cape Verde said th at his Government had signed an Exchange 
Cooperation Accord with Portugal, which establishe d a fixed parity between the Cape Verde Escudo 
(CVE) with the Portuguese Escudo, and subseque ntly with the Euro (Resolution No. 81/V/98 of WT/ACC/SPEC/CPV/5 
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 11 May 1998).  The fixed rate of exchange was € 1 to CVE 110.265.  Under the terms of the Accord, 
Cape Verde had committed itself to adopting macr oeconomic guidelines that would safeguard this 
parity.  
15. The representative of Cape Verde said that  his Government had notified the IMF on 
6 August 2004 of its decision to accept the obligations of Article VIII, Sections 2 (a), 3 and 4 of the 
IMF's Articles of Agreement.  The implementation of  this decision had since been delayed on account 
of a bilateral agreement on credits and payment between Cape Verde and Cuba.  This bilateral 
agreement had recently expired and had not been re newed.  The process of implementing the notified 
decision was underway.   
16. With respect to foreign exchange controls, in accordance with Decree Laws No. 25/98 and 
26/98 of 29 June 1998, and the Bank of Cape Verd e's Notice No. 4/98 of 21 December 1998, current 
invisible operations had been liberalized except for transactions exceeding CVE 1 million connected 
to travelling.   Cape Verde applied neither rest rictions on the opening of bank accounts in foreign 
currency nor restrictions to obtain currency to import merchandise.  However, if the legitimacy of the 
stakeholder in a specific operation was questionabl e, the BCV could, in accordance with the law, 
impose a prior verification requirement.  Transfer opera tions that could be subject to prior verification 
by the BCV were (i) current invisible operati ons of amounts exceeding CVE 1 million falling under 
the heading "private unilateral transfers"; (ii) transfers exceeding CVE 5 million as revenues or as 
payment for services rendered (except for interest payments on previously authorized loans); and 
(iii) the pre-payment or final settlement of current  transactions more than three months in advance 
when the instalment exceeded CVE 1,000,000 (and 35 per cent of the contractual value).  He added 
that capital operations, with the exception of tho se executed in the stock market or through duly 
authorized brokers, were subject to prior aut horization from the BCV.  This authorization was 
automatic as long as the requested accompanying  documents were submitted and the necessary 
requisites established by the law were met.  He c onfirmed that Cape Verde did not maintain foreign 
exchange restrictions such as mandatory surrender re quirements, prior import deposits, or taxes on the 
acquisition of foreign exchange.   
17. The representative  of Cape Verde said that the Foreign Investment Law No. 89/IV/93 of 
13 December 1993 facilitated the full (100 per cent) tran sfer of foreign investment capital as long as 
the foreign investor was registered as such with  the BCV and was authorized by the Minister of 
Finance and Planning to carry out foreign investment operations.   
18. A Member noted that the BCV could require the transfer of capital arising from the sale, 
liquidation or dissolution of an enterprise to be carri ed out in quarterly instalments if transferring the  WT/ACC/SPEC/CPV/5 
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 sum in full would cause a serious disturbance to Cape  Verde's balance of payments and asked whether 
the BCV would seek the opinion of the IMF before  imposing such measures.  In reply, the 
representative of Cape Verde said that this measure  was intended to safeguard Cape Verde's balance 
of payments in exceptional circumstances of grave concern.   
19. A Member sought further information on the ci rcumstances, including judicial and appeal 
process, under which a foreign account could be frozen.  In response, the representative of 
Cape Verde confirmed that a foreign account could onl y be frozen on the basis of judicial action and a 
court decision to that effect.   
- Investment Regime  
20.  The representative of Cape Verde said that hi s Government's policy objectives on investment 
were to promote and encourage a transparent and fair business environmen t for both domestic and 
foreign investors, and to increase the role of the private sector in Cape Verde's development process.  
All sectors were open to investment, unless an activity  was considered a threat to national security, 
public morals, the environment or public health, or w as in violation of domestic laws and regulations.  
Examples of such prohibited activities included th e production or importati on of handguns, military 
weapons and hardware, munitions  and similar materials; th e production or importation of 
pornographic materials, establishment of houses of ill repute, establishment of illegal gambling 
houses and similar activities; industries that would de grade the environment such as processing turtle 
products and/or other endangered species; and th e establishment of industries producing and/or 
distributing illegal drugs and food dangerous to public health.   
21. The Centre for Tourism, Investment and Expor t Promotion of Cape Verde (PROMEX) and its 
successor CAPEVERDE Investments - CapeVerdean  Agency for Investment, a Government 
department under the supervision of the Ministry  of Economy, Growth and Competitiveness, was the 
authority charged with promoting trade and investme nt opportunities.  All foreign investments were 
subject to prior authorization, and the Foreign In vestment Law No. 89/IV/93 of 13 December 1993 set 
out the conditions for foreign direct investment (FDI) in any sector of economic activity.  The 
procedures for authorization of foreign direct invest ment were stipulated in Regulatory Law No. 1/94 
of 3 January 1994, including application forms reprodu ced in its Annexes 1 and 2.  FDI was evaluated 
on the basis of criteria enumerated in Article 7 of the Regulatory Law.  His Government did not 
mandate any minimum (floor) or maximum (ceiling) va lue levels of investment in Cape Verde.   
22. Investment applications - together with particulars of each investor, details of the project 
location and, in specific cases, environmental imp act studies - were addressed to the Ministry of 
Finance and Planning, through CAPEVERDE Investments.  The specific cases that warranted WT/ACC/SPEC/CPV/5 
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 environmental impact studies were determined by th e nature, size or location of the investment.  He 
added that CAPEVERDE Investments provided investor s with minimum criteria needed for inclusion 
in the environmental study.   
23. Having reviewed the Regulatory Law No. 1/94, a Member stated that the criteria for receiving 
authorization and the informati on needed for this purpose should be clear and exhaustive.  The 
deadline for receiving the authorization stipulat ed in Articles 3 and 4 was ambiguous, and the 
provisions of Article 4.3 and 4.4 were arbitr ary and should be deleted from the Law.   
24. The representative of Cape Verde replied that Article 3 of Regulatory Law No. 1/94 stipulated 
a deadline of maximum 30 days for the processing of applications by CAPEVERDE Investments.  The exception outlined in Article 4.3 and 4.4 applie d only to investments in Franc Enterprises.  In 
case of missing or incomplete data, the Investment  and Franc Enterprise Evaluation Committee could 
request additional information, and the 30 day dead line would be suspended until the foreign investor 
or his/her legal representative provided the requested data.   
25. Upon granting the authorization, a Certificate of  External Investment w as sent to the investor 
or his/her legal representative.  This Certificate c ould be declared null and void if the investment did 
not occur within a specified dead line.  The start-up or reopening of  business was subject to inspection 
by the competent authorities.  An investment proj ect was prohibited if the application was rejected.  
He added that the rejection of an application could be appealed either through the Courts or to the 
Government.  A rejected application could also  be presented again for reconsideration.   
26. The rights of all investors and the protecti on of their investment from expropriation or 
nationalization were guaranteed in Cape Verde.  All investors - domestic or foreign, natural or legal 
persons - were treated equally.  If expropriation w as necessary, it would be fair and equitable, and 
compensation would have to be paid.   
27. The existing laws and regulations provided sector s such as tourism, industry, exports and re-
exports, and financial institutions with tax incentives and customs duty exemptions, facilities for the 
transfer of funds and banking, etc.  Incentives had also been provided to the transportation industry 
i.e. maritime, road and air transportation, and to  the communications sector (see also section on 
Industrial policy, including subsidies).  Fiscal in centives included reductions in contributions and 
taxes on profits.  Customs incentives included susp ension of customs duties for raw materials and 
accessories, and duty exemptions when applicable.  Upon request, enterprises duly entered in the 
fiscal and industrial registry could avail of these bene fits within 120 days from the date of export or 
re-export.  Investment directed primarily to the dom estic market was not eligib le for these incentives.   WT/ACC/SPEC/CPV/5 
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 He stated that his Government would undertak e a further study on the incentives provided for 
investment and industry.   
28. Asked to provide a comprehensive list of all investment promotion schemes indicating their 
legal basis, eligibility criteria and budget, the re presentative of Cape Verde said that the eligibility 
criteria for foreign investment were laid down in Article 2 of the Foreign Investment Law 
No. 89/1V/93 of 13 December 1993.  For industrial investment, Article 28 of the Decree Law 
No. 108/89 of 30 December 1989 provided the cond itions for Industrial Status and access to 
incentives.  Article 2 of the Law No. 99/IV/93 of 31 December 1993 outlined the eligibility criteria 
for Franc Enterprises.  Article 4 of Law No. 92/IV/93 of 15 December 1993 governed access to 
incentives for exportation or re-exportation of goods a nd services.  In the tourism sector, the relevant 
provisions were Articles 3 and 5 of the La w No. 55/VI/2004 of 10 January 2004.   
29. He noted that Cape Verde's laws and regulati ons contained no limitati ons related to foreign 
investment, except for the denial of incentives for i nvestments catering exclusively or mainly to the 
domestic market.  He added that incentives for invest ment in the financial sector were governed by 
Decree Law No. 66/97 of 3 November 1997.  Joint ventures with foreign investors in financial 
services were encouraged in accordan ce with Law No. 47/IV/92 of 6 July 1992.  Pursuant to Article 7 
of Decree Law No. 87/89 of 24 November 1989, joint ventures could also be established in construction services.   
30. He provided an Action Plan for the Revisi on of Incentives to National Production and to 
Foreign Investment in document WT/ACC/CPV/22.  Existing legislation would be reviewed and, as 
necessary, revised by 31 December 2006.  The new investment regime would be fully implemented by 31 December 2007.  Technical assistance was re quested at all stages of the action plan.  He 
confirmed that the revised legislation woul d be notified to the WTO Secretariat.  
- State Ownership, Privatization and State-Trading Entities 
31. The representative of Cape Verde said that economic policies in Cape Verde had focused on 
import substitution and State control of the econom y from independence in 1975 to 1989.  Several 
public and mixed enterprises had been created in various sectors, including transportation (sea and 
air), fuel, agriculture, poultry, livestock production, fishing, pharmaceuticals, civil construction, naval 
repair, insurance, hotel services and the commerciali zation of basic goods.  The Government had also 
controlled the financial sector.  The State had thus played a significant role in the economy and by the 
end of 1988, 19 State-owned and 14 mi xed enterprises had been created.   WT/ACC/SPEC/CPV/5 
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 32. The State's role in the economy had been subs tantially diminished since 1991, and the private 
sector had emerged as the engine for development.   Cape Verde had revised its Constitution to 
redefine the concept of public property to provide  a legal framework for market liberalization.  In 
accordance with the revised Constitution and La w No. 93/IV/93 of 15 December 1993, economic 
sectors were no longer reserved for public activity in order to stimulate the private sector and to promote foreign investment.  As a result, more th an 20 State-owned enterprises had been privatized 
(Table 1).  Privatization of these enterprises had been undertaken through the sale of shares or the 
direct sale of the enterprise.  The process of  liquidation was used in certain cases.   
Table 1:  Privatized Enterprises
 
Privatization Owners of Shares Original enterprise New privatized 
enterprise Fully Partially State Nationals Foreigners Direct sale 
Agência nacional de 
viagens 2 new agencies (ANV 
& ANAV) Yes      
AGRIPEC Agripec Yes   X  Yes 
CABETUR Cabetur Yes   X  Yes 
CONCHAVE Conchave  Yes   X  Yes 
ENAVI Sociave (Mindelo); 
Enavi (Praia) Yes   X  Yes 
EMPROFAC 7 pharm acies (only the 
pharmacies) Yes   X  Yes 
FAP Aripec; Coopechaves; 
Prolac Yes   X  Yes 
Justino Lopes Associação sector 
agrícola Justino Lopes; 
Carmac; Propec. Yes   X  Yes 
INTERBASE Salmar and 
INTERBASE Yes    X 
(Salmar) Yes 
(Salmar) 
MACSOBIL Macsobil Yes   X  Yes 
METALCAVE Metalcave Yes   X  Yes 
MORABEZA Morabeza Yes   X  Yes 
ONAVE Recoref; Belcab; 
Funcave; Lusonave. Yes   X  Yes 
SITA SITA Yes   X  Yes 
ULTRA Ultra. Yes   X  Yes 
ELECTRA Electra.  Yes X X X Yes 
ENACOL Enacol  Yes X X X Yes 
BCA Bca.  Yes X X X Yes 
Caixa Económica Caixa econo mica.  Yes X X X Yes 
Garantia (insurance 
company) Garantia.  Ye s X X X Yes 
Promotora Promotora.  Yes X X X Yes 
Cabo Verde Telecom Cabo verde telecom.  Yes X X X Yes 
Hotel Belo Horizonte Hotel Be lo Horizonte Yes    X Yes 
Hotel Praia Mar Hotel Pr aia Mar Yes    X Yes 
CVC CVC Yes    X Yes 
MOAVE MOAVE Yes   X  Yes 
Hotel Xaguate Hotel Xa guate Yes    X Yes 
INTERBETAO INTERBETAO Yes   X  Yes 
FAMA FAMA Yes   X  Yes 
OFICINAS OFICINAS Yes   X  Yes 
CERIS CERIS Yes    X Yes 
EMPA Liquidated Yes   NA NA Liquidation  WT/ACC/SPEC/CPV/5 
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 Privatization Owners of Shares Original enterprise New privatized 
enterprise Fully Partially State Nationals Foreigners Direct sale 
TRANSCOR TRANCOR, S.Vicente Yes   X  Yes 
ARCA VERDE Liquidated Yes   NA NA Liquidation 
SONACOR Liquidated Yes   NA NA Liquidation 
 
Table 2:  Privatization Plans  
Envisaged Privatization State-owned enterprises slated for 
privatization Capital 
(US$ million) Share Direct sale 
CABNAVE 7 a)  Concession Contract 
ENAPOR 9.4 b)   Concession Contract 
EMPROFAC 7 c) X Full privatization, sale of shares 
TACV (Strategy not yet defined) 11d)   
 
a) Net book Value, Source: Booz-Allen & Hamilton, 2004 
b) Source: ENAPOR's Financial Department 
c) Source: Euro-Phoenix, 2004 
d) TACV Annual Report 2003,  Balance Sheet Net Worth  
 
33. In addition to the enterprises listed in Table 1,  State-owned enterprises in the early stages of 
being privatised were TACV (Cape Verde's Ai r Transportation Company), ENAPOR (the Port 
Authority), EMPROFAC (Pharmaceuticals), and CABENAVE-SARL (repair docks).  He confirmed 
that foreign investors had participated in Cape  Verde's international pu blic tenders and would 
continue to be eligible to participate freely in  the privatization process.  The ongoing privatization 
plans are outlined in Table 2.  He added that unde r the terms of a performance contract signed with 
his Government, two State-owned enterprises - the Airport Management Company and the Postal 
Company - were not to be privatized.  He conf irmed that these two enterprises and those listed in 
Table 2 were the only State-owned enterprises in Cape Verde.   
34. The representative of Cape Verde confirme d that his Government would ensure the 
transparency of its ongoing privatization programme .  He stated that his Government would provide 
annual reports to WTO Members on developments in its privati sation programme as long as the 
programme would be in existence, and along the lines of the information already provided to the 
Working Party during the accession process.  The Working Party took note of this commitment. 
35. The representative of Cape Verde said that th e State-owned enterprises abided by the same 
corporate laws and principles as private companies.  The enterprises were organized with Boards of 
Directors and fiscal councils (internal auditors), and adhered to national acc ounting standards.  The 
Board of Directors prepared annual reports and a udited statements to the shareholders, internal 
auditors and the tax authorities.  The annual reports were published in the Official Bulletin and/or in 
newspapers.  Independent (external) auditors reports were alwa ys annexed to the annual reports.  
Profits were disbursed in proportion to each shar eholder's equity (including the State) after the WT/ACC/SPEC/CPV/5 
Page 10  
 
 accounts had been presented to the shareholders for approval, and a vote had been taken on retained 
earnings and dividends.   
36. Regarding State trading, the representative of  Cape Verde said that weapons and munitions 
were imported exclusively by the Ministries of Defence and Home Affairs.  In accordance with 
Decree Law No. 29/93 of 24 May 1993 and Decree  Law No. 50/2003 of 24 November 2003, gold for 
monetary use was imported only by the Central Bank (i.e. BCV).  Products such as fuels and 
lubricants, tobacco and chemical-pharmaceutical products were subject to a special import regime and 
were imported under an exclusive regime by sel ect enterprises (Shell and ENACOL, Cape Verdean 
Tobacco Company, and EMPROFAC).   
37. Shell and ENACOL were private enterprises w ith concession rights granting them exclusive 
distribution rights for petroleum derivatives un til 2007.  Both companies purchased fuels and 
lubricants competitively in the international market  and sold petroleum products domestically either 
through retail outlets or directly to airline and shipping interests.   
38. The Cape Verdean Tobacco Company (Compainha  Caboverdiana de Tabacos) was a private 
company enjoying a monopoly in the production,  importation, commercialization and wholesale 
distribution of tobacco.  These rights or concessions had been bestowed to th e Cape Verdean Tobacco 
Company under the terms of a contract concluded with his Government on 2 May 1997, published in 
the Official Bulletin No. 20, II Series of 20 Ma y 1999.  He added that tobacco production in 
Cape Verde was insignificant and domestically produced tobacco was not used in industrial 
production. 
39. His Government had created EMPROFAC to en sure citizens' access to basic medicines.  
EMPROFAC had exclusive rights to purchase do mestically-made products from INPHARMA.  
EMPROFAC sold pharmaceuticals imported or  bought from INPHARMA to hospitals, the 
Directorate-General of Pharmacy and private pharm acies.  EMPROFAC determined the quantity of 
imports and set prices on an annual basis based on hi storic information and in  consultation with the 
Directorate-General of Pharmacy and other pur chasers.  EMPROFAC imports had amounted to 
CVE 505,120,500 (€ 4.58 million) in 1999, CV E 602,285,000 (€ 5.46 million) in 2000, and 
CVE 588,614,520 (€ 5.34 million) in 2001.  Purchase s were made through a tendering process and an 
invitation for bids from foreign suppliers.  Alt hough EMPROFAC had not concluded any long-term 
contracts for purchases, the enterprise generally reso rted to the same suppliers every year.  Comments 
by the public on EMPROFAC's operations could be directed to the Inspector General of Economic 
Activities or to the Directorate-General of Pharma cy responsible for overseeing the pharmaceutical 
sector.  He said that his Government had decided to  create a regulatory agency to regulate this sector.   WT/ACC/SPEC/CPV/5 
 Page 11 
 
 
 His Government was also in the process of pr ivatising EMPROFAC.  The issue of whether 
EMPROFAC would retain its exclusive importa tion and distribution authority was also under 
consideration. 
40. The importation of rice, corn, sugar and wheat flour were no longer subject to State trading.  
The Public Stock Provisioning Enterprise was no l onger in business.  The import regime for these 
products was set out in Decree Law No. 29/2 002 of 9 December 2002 and Ministerial Ordinance 
No. 6/2004 of 16 February 2004.  Under the existi ng legislation, importers of staple goods were 
required to register as a comme rcial importers under the term s of Cape Verde's commercial 
legislation, possess warehouses appropriate for th e storage of the goods to be imported, pay 
registration and annual renewal fees of CVE 20, 000 and CVE 2,000 (Ministerial Ordinance No. 2/99 
of 8 February 1999), and provide monthly informati on on stocks held in each of the islands to the 
National Agency for Food Security.  A requirement that the companies should have the capacity to 
distribute 30 per cent of the annual imports in islands  other than Santiago and Sao Vincente would be 
revoked under a new Law under cons ideration by Parliament.   
41. Based on the information available, some Memb ers considered that Cape Verde would need 
to notify Shell, ENACOL, EMPROFAC, and the Ca pe Verdean Tobacco Co mpany as State trading 
enterprises under Article XVII of the GATT 1994.  The representative of Cape Verde replied that, in 
his opinion, none of these enterprises fell within the scope of Article XVII of the GATT 1994 at 
present.   
42. The representative of Cape Verde confirmed that his Government would ensure that all State-
owned, State-invested, and State-trading enterp rises would make purchases and sales based solely on 
commercial considerations, e.g. price, quality, mark etability and availability, and that the enterprises 
of other WTO Members would have an adequate opportunity to compete for sales to and purchases 
from these enterprises on non-discriminatory terms and conditions.  In addition, the Government of 
Cape Verde would not influence, directly or indi rectly, commercial decisions on the part of State-
owned, State-invested, or State-trading enterprises, including on the quantity, value or country of origin of any goods purchased or sold, except in a manner consistent with the WTO Agreement.  The 
Working Party took note of these commitments.   
- Pricing Policies  
43. The representative of Cape Verde said that pr icing policies were governed by Decree Law 
No. 52/2003 of 24 November 2003, and price contro ls for goods and services were regulated by 
Ministerial Ordinance No. 2/2004 of 19 January 2004.  All price controls in Cape Verde were either 
fixed prices, maximum (ceiling) prices, or negotiated prices.  Maximum or fixed prices were WT/ACC/SPEC/CPV/5 
Page 12  
 
 established on the basis of production costs and pri ce fluctuations in the international and domestic 
markets.  Mandated profit margin le vels were not part of  Cape Verde's price regimes.  Goods subject 
to price controls are listed in Table 3.  Services subject to price regulation included fixed prices for 
maritime cabotage services, water supply, electric power supply and fuel supply; maximum prices for 
taxi services; and negotiated prices for private health care services, communication services, and passenger transportation services.  Minimum prices were not established any imported or 
domestically-produced good.  Minimum customs values on imported chicken had been abolished 
upon the expiry of Regulatory Decree No. 2/2002 on 12 August 2004. 
44. Prices were administered by autonomous regulatory agencies in consultation with the Upper 
Council of the Chambers of Commerce.  The Govern ment, i.e. the Ministry of Economy, Growth and 
Competitiveness together with the relevant Ministri es, was responsible for the supervision of the 
regulatory agencies created for th e administration of price controls.  Pursuant to Decree Law 
No. 3/1993 of 15 February 1993, the price regime fo r drugs (pharmaceuticals) was determined jointly 
by the Ministers of Health, Industry and Commerce.   
45. Administered prices were adjusted when pri ces in the international market had changed 
significantly.  Adjustments were periodic with no set timeframe and prices had been modified in 
1994, 1998, 2003 and 2004.  Cape Verde did not apply any variable im posts on imported goods 
whereby the domestic price could be insulated fro m changes in international prices.  Economic 
criteria, such as allowing a reasonable rate of retu rn on the investment, were incorporated into the 
price setting.  He added that price controls were administered with transparency.  The views of the 
Chambers of Commerce, relevant Ministries, muni cipalities and interested consumer associations 
were taken into consideration in modifying the c ontrolled prices.  Laws and regulations establishing 
or modifying price controls in Cape Verde had alwa ys been published in the Official Bulletin before 
taking effect.  The new prices became effectiv e upon publication or shortly thereafter.   
46. Price controls were applied to imported a nd domestically-produced goods and services, but 
not to exports.  Price controls for imported br ead and baking products, rice, sugar (granules), corn, 
wheat flour and bran, butane gas, petrol, gas oil and kerosene were applied at the same point of sale as 
for domestic production.  He confirmed that produc ts affected by price controls were no longer 
subject to State trading.   
47. The representative of Cape Verde confirmed th at pricing policy in Cape Verde would be 
applied in compliance with the provisions of Artic le III:4 and XI:1 of the GATT 1994 and Article 4 of 
the Agreement on Agriculture.  He further stated that in the application of price controls now or in the 
future, Cape Verde would apply such measures in a WTO-consistent fashion, and take account of the  WT/ACC/SPEC/CPV/5 
 Page 13 
 
 
 interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994.  Cape Verde 
would publish the list of goods and services subject to  State price control and any changes to this list 
in its Official Gazette and would continue to do so  after accession.  The Working Party took note of 
these commitments.   
- Competition Policy 
48. The representative of Cape Verde said that th e regulation of competition policy was based on 
the need for product diversity and economic or technological advances.  Decree Law No. 50/2005, 
replacing Decree Law No. 53/2003 of 24 Novemb er 2003, outlined the competition policies of 
Cape Verde.  The General Directorate of Co mmerce, within the Ministry of Economy, was 
responsible for planning and enforcing competiti on policies.  A Competition Advisory Council, an 
independent quasi-judicial government entity envisag ed under Cape Verde's competition legislation, 
was not yet operational due to budgetary, office a nd manpower constraints.  The Council's primary 
function would be to adjudicate claims of unfai r trade, but the Council could also propose draft 
legislation to the Government.  Council Decisi ons could be appealed to the courts.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
49. The representative of Cape Verde said that  Cape Verde's Constitution had been promulgated 
on 7 March 1980.  The Constitutio n had subsequently been revi sed in 1981, 1988, 1992, 1995 and 
again most recently in 1999.  The Constitution provi ded for a separation of ex ecutive, legislative and 
judicial powers.  The President of the Republic was the Head of State, elected by popular vote for a 
five-year term.  The President could be re-elected only once.  
50. Under the Parliamentary system established in Cape Verde, the executive branch of the 
Government was headed by the Prime Minister.  The Prime Minister was nominated by the President 
after consultation with parliamentary parties.  The leader of the majority party or the coalition of 
parties with a majority in Parliament was usually selected as Prime Minister.  
51. Legislative power resided in the unicameral  National Assembly made up of 72 members 
elected for a five-year term.  The laws approved by the National Assembly were forwarded to the 
President of the Republic who could either promulga te them or send them back for a second reading.  
Matters referred back by the Presi dent needed to be passed by the National Assembly by a two third 
majority on constitutional matters, or by a simple ma jority for other matters before becoming law.  
Since Cape Verde's independence in 1975, all preced ent laws, rules, regulations and procedures while 
not expressly revoked, were valid and in force accord ing to the Decision with Force of Law No. 1/75 
of 5 July 1975, except in cases where they were in compatible with Cape Verde's sovereignty.   WT/ACC/SPEC/CPV/5 
Page 14  
 
 52. Outlining the procedure for Cape Verde's ratif ication of its WTO accession package, he said 
that his Government would verify the accuracy and contents of the negotiate d terms, and forward the 
package together with a draft resolution to the Na tional Assembly for legal and constitutional review 
and approval.  Upon approval, the National Assemb ly would forward the package to the President 
who, after statutorily checking the National Assemb ly Resolution and the package for its legality and 
compatibility with Cape Verde's Constitution, woul d ratify the package by a public notice to be 
published in the Official Journal.  Should the Presi dent have concerns about the compatibility of the 
package with Cape Verde's Constitution he could request the Constitutional Court to rule on the 
matter.  The representative of Cape Verde expected  the process of domestic ratification to take no 
more than 90 days.  He added that, upon accessi on to the WTO and in accordance with Articles 12-14 
of the Constitution, the provisions of the WTO woul d supersede domestic law a nd be an integral part 
of Cape Verde's legislation. 
53. The representative of Cape Verde said that trad e policy was the responsibility of the Ministry 
of Economy, Growth and Competitiveness which coordinated with other ministries having 
jurisdiction over trade-related matters.  An inte r-ministerial group was convened for the formulation 
of trade policy.  His Government solicited the vi ews of municipalities and the private sector through 
industry associations and the Chambers of Comme rce.  The Council of Ministers had the final 
authority in formulating trade policy.  
54. His Government had created a WTO Unit, repor ting directly to the Minister, within the 
Ministry of Economy, Growth and Competitiveness.  The purpose of this unit was to (i) develop trade 
policy initiatives and make recommendations to th e Council of Ministers; (ii) coordinate the 
implementation of trade policy decisions made by the Council of Ministers; (iii) coordinate WTO 
related matters within the Government; (iv) prepar e notifications to the WTO; and (v) carry out any 
WTO related functions deemed necessary by the Government or the Council of Ministers.   
55. The representative of Cape Verde noted that  the WTO accession process had in several 
instances necessitated the drafting of new legislation or the modification of existing laws and regulations to ensure WTO conformity.  New laws currently under review included the Customs Law, 
the Intellectual Property Law (patents and tradem arks), the Law on Arbitration, and the Law on 
Foreign Trade.  A General Legislative Action Plan  for further legislative reform was submitted in 
document WT/ACC/CPV/12 and its revision. 
56. The representative of Cape Verde said that no s ub-central Government entity in Cape Verde 
was vested with the authority to create legal re quirements in the areas covered by the WTO.  
Cape Verde was a unitary Republic with a President , the National Assembly, Government and Courts.   WT/ACC/SPEC/CPV/5 
 Page 15 
 
 
 The central government had the exclusive authority over all administrative issues of national scope.  
Local administration was the responsibility of municipa lities.  All laws and regulations were enforced 
by the administration or courts.    
57. [The representative of Cape Verde confirme d that Cape Verde would, upon accession, apply 
WTO provisions and Cape Verde's Protocol of Accession uniformly throughout the entire customs 
territory, including in [regions engaging in border trade or frontier traffic,] special economic zones, 
and other areas where special regimes for tariffs, tax es and regulations were es tablished.  He added 
that when appraised or alerted of a situation where WTO provisions were not being applied or were applied in a non-uniform manner, central authorities would act to enforce WTO provisions without requiring affected parties to pe tition through the courts.  The Wo rking Party took note of these 
commitments.] 
58. The representative of Cape Verde said that the j udicial system consisted of the Constitutional 
Court; the Supreme Court of Justice; Judicial Cour ts of the First Instance; the Court of Accounts; 
Military Courts; and Fiscal and Customs Courts.  Th e Courts of the First Instance were divided into 
first, second and third class judicial districts, with the Supreme Court of Justice being the court of last 
instance.  Other Courts could be created by la w, such as Judicial Courts of Second Instance, 
Administrative Courts, Arbitration Courts and Conf lict Resolution Institutions with jurisdiction upon 
smaller territorial areas.   
59. Matters decided in Third Class courts could be a ppealed either to First or Second Class courts 
provided the claim was valued at or above CVE 20 0,000 (€ 1,814).  Cases d ecided in the First and 
Second Class courts could be appealed to the Supr eme Court provided the claim was valued at or 
above CVE 500,000 (€ 4,535).  In conformity with  Article X of the GATT 1994, decisions by the 
Customs or other official entities could be appealed either to the Fiscal and Customs Courts, or to the 
Common Courts.  On matters relating to trade in services and TRIPS, administrative appeals could be 
directed to the Administrative Court or to the Common Courts.  The Administrative Court was not yet 
operational, and in the interim the Common Courts and the Supreme Court performed its functions.  
He added that the Administrative Court, once operati onal, would be an independent judicial body and 
not part of the executive.  The Administrative Court would have jurisdiction over cases or actions 
initiated against the Government and its members or officers while carrying out their official duties. 
60. Specifically regarding appeals against administra tive decisions related to trade in goods and 
services and intellectual property rights, he said that an aggrieved party appeal in writing against an 
administrative decision.  An appeal could be made  directly to the courts, or the matter might be 
referred to the courts after the administrative reme dies had been exhausted.  The usual practice was WT/ACC/SPEC/CPV/5 
Page 16  
 
 for an aggrieved party to appeal to the administra tive body and, if dissatisfied with the outcome, to 
seek recourse to the courts.  He added that issu es pertaining to the WTO could be appealed in the 
Common Courts, in their attribution or role as Administrative Courts, and subsequently to the 
Supreme Court.   
61. He noted that the National Assembly had pr omulgated Cape Verde' s mediation laws in 
May 2005 as outlined in the Action Plan (WT/ ACC/CPV/13 and Rev.1).  The coverage of 
Decree Law No. 30/2005 on the creation of mediation centres and Decree Law No. 31/2005 
regulating the use of mediation in the resolution of conflicts included definitions; the general principle 
of mediation; mediators; representation; compulsory representation; mediation centres and their rules of procedures; pre-mediation and end of the mediat ion process; and final prov isions.  He added that 
Cape Verde's proposed arbitration law and legisla tion on arbitration centres were scheduled to be 
approved by the National Assembly by [July 2005].  The coverage of the proposed arbitration law 
would include arbitration conventions ; arbiters and establishment of an  arbitral Court; operation of the 
arbitration process; arbitral decisions; and internatio nal arbitration or the adaptation of the arbitration 
law of Cape Verde to the international judicial inst ruments that regulate international arbitration, i.e. 
the United Nations' Conventions on International Commercial Arbitration and the Regulation of 
Arbitration of the International Chamber of Commerce.   
62. The existing framework for arbitration between  foreign investors and the Government of 
Cape Verde allowed for appeals to be made to inte rnational arbitration panels.  Certain provisions of 
the Foreign Investment Law (Law No. 89/IV/93), nota bly Article 17, provided the legislative basis for 
such arbitration.  His Government was not a memb er of the International Centre for Settlement of 
Investment Disputes (ICSID), but the Ministries of Justice and Foreign Affairs were currently 
considering Cape Verde's possible membership in ICSID as well as the 1958 UN Convention on the 
Recognition and Enforcement of Foreign Arbitral Awa rds.  Cape Verde was also not a signatory of 
the 1994 Treaty of Port-Louis and had not joined the Organisation pour l'harmonization des droits 
d'affaires en Afrique (OHADA).  However, a st udy recommended by the ECOWAS Heads of State 
was to be carried out on the extension of  OHADA to all ECOWAS member States, including 
Cape Verde.  
63. [The representative of Cape Verde confirme d that upon the date of accession, although the 
current Constitution and Laws provide for extensive guarantees for judicial powers and jurisdiction, 
privileges and immunities as well as democratic gove rnment, Cape Verde would organize, install and 
implement the independent administrative tribuna l and ordinary tribunals of second instance and 
publish their relating rules and procedures as it might appear prudent and wise.  He also confirmed 
that Cape Verde would provide due guarantee for the prompt review of the Government's actions  WT/ACC/SPEC/CPV/5 
 Page 17 
 
 
 relating to the implementation of laws, regulations, judicial decisions and administrative rulings of a 
general application referred to in Article X:1 of  the GATT 1994, Article VI of GATS, and Articles 41 
and 42 of the TRIPS Agreement.  The tribunals or  procedures would also include actions relating to 
the implementation of national treatment, conformi ty assessment, the regulation, control, supply or 
promotion of a service, including the grant or deni al of a licence to provide a service and other 
matters.  The tribunals or procedures responsible fo r such reviews would be impartial and independent 
of the agency entrusted with administrative enforcem ent and shall not have any substantial interest in 
the outcome of the matter.  The review procedure would include the opportunity for appeal according 
to the lawsuits.  Notice of the decision on appeal wo uld be given to the appellant and the reasons for 
such a decision would be provided in writing.  Th e Working Party took note of these commitments.] 
[The representative of Cape Verde confirmed th at upon the date of accession, Cape Verde would 
establish the appropriate independent administrative or  judicial tribunals or procedures for the prompt 
review of the Government's actions relating to the implementation of laws , regulations, judicial 
decisions and administrative rulings of a genera l application referred to in Article X:1 of the 
GATT 1994, Article VI of GATS, and Articles 41 and 42  of the TRIPS Agreement.  The tribunals or 
procedures would also include actions relating to the implementation of national treatment, 
conformity assessment, the regulation, control, s upply or promotion of a service, including the grant 
or denial of a licence to provide a service and othe r matters.  The tribunals or procedures responsible 
for such reviews would be impart ial and independent of the agency  entrusted with administrative 
enforcement and shall not have any substantial interest in the outcome of the matter.  The review 
procedure would include the opportunity for appeal , without penalty, by individuals or enterprises 
affected by any administrative action subject to re view.  Notice of the decision on appeal would be 
given to the appellant and the reasons for such a decision would be provided in writing.  The Working 
Party took note of these commitments.]  
IV. POLICIES AFFECTING TRADE IN GOODS  
- Trading Rights 
64. The representative of Cape Verde said that Ca pe Verde's legislation distinguished between 
business registration, performed by the Conservatory  of Commercial Registry under the Ministry of 
Justice, and licensing for commercial activity opera ted by two Chambers of Commerce on behalf of 
the Government.  The registration of "industrial enterprises" was effected  in accordance with the 
requirements and procedures established in La w No. 50/III/89 of 13 July 1989, Decree Law 
No. 108/89 of 30 December 1989, Law No. 89/IV/ 93 of 13 December 1993, Law No.92/IV793 of 
15 December 1993, Legislative Decree No. 19/ 97 of 22 December 1997, and Regulatory Decree 
No. 1/94 of 3 January 1994.  An "industrial ente rprise" was allowed only to import raw materials, WT/ACC/SPEC/CPV/5 
Page 18  
 
 semi-manufactured inputs and equipment for its own needs, and could not enga ge in general 
importation and distribution of goods in the domestic market.   
65. Enterprises engaging in commercial activities - importation, exportation and distribution 
services - registered with the Department responsible for commerce at the Conservatory of Commercial Registry pursuant to Decree Law No . 59/1999 and Ministerial Ordinances Nos. 45-A/99 
and 45-B/99 of 27 September 1999.  In addition, these enterprises needed a permit to be a 
"commercial operator", delivered by the Chamber of Commerce, Industry and Services of Sotavento 
for the islands of Santiago, Maio, Fogo and Br ava, or the Chamber of Commerce, Industry, 
Agriculture and Services of Barlavento (covering S.  Vicente, S. Antão, St. Nicolau, Sal and Boa 
Vista).  The procedures and requirements for regist ration of commercial operators were outlined in 
Decree Law No. 50/2003 of 24 November 2003.  Indus trial enterprises importing for their own needs, 
financial institutions and tourism establishments di d not have to register with the Chamber of 
Commerce.  Although the authority to issue perm its had been delegated to the Chamber of 
Commerce, the Ministry of Economy, Growth and Competitiveness retained the power to monitor and 
regulate the licensing system.   
66. Business registration allowed firms to acquire ju ridical personality and capacity, either in the 
form of sole proprietorships, partnerships, limite d liability companies, cooperatives, capital stock 
corporations and public corporations.  The pro cessing time for business registrations depended on the 
diligence of the applicant, but business entities should assume that a registration had been granted if 
no response had been received within 30 working da ys.  An on-line registration system interfacing 
with the entities involved in the commercial area was being developed and would become operational 
in the near future.  Electronic systems had been installed in Praia, Minde lo, and Sal Island and a 
program had been drafted to cover the whole country.  At present, business registrations at the municipal level were forwarded to, and compiled at, the central office of the Conservatory of 
Commercial Registry in Praia to ensure that new registrants were authorized to carry out business 
throughout Cape Verde.  Foreign enterprises had to establish themselves through a branch or any 
other form of commercial representation to register  in Cape Verde and engage in import or export 
operations.  International traders once registered w ith the Conservatory of Commercial Registry and 
the Chambers of Commerce, were not required to fulfil any other registration requirements.   
67. Any interested party could apply to the Ch ambers of Commerce to become a commercial 
operator and engage in import a nd export activities.  The registration requirements for commercial 
operators engaging in exports were identical to those for imports.  Exporters serving the United States' 
market under the African Growth and Opportunities Act (AGOA) registered with the Government 
department responsible for commerce as exporting be gun and deregistered if they ceased exporting.   WT/ACC/SPEC/CPV/5 
 Page 19 
 
 
 A firm could register as importer,  exporter or both, but could not re gister in one activity and practice 
the other.  The application should specify the product s to be imported or exported (by HS Section).  
An enterprise could engage in both importation a nd distribution activities by specifying this in the 
registration documents.  As a general rule, an im porter had the right to import and distribute goods at 
the wholesale level.   
68. Individuals importing goods for personal use were  not required to register.  Certain activities 
not considered import operations were also exempt  from the registration requirements, including the 
importation of (i) goods destined for accredited diplomatic and consular representatives in 
Cape Verde; (ii) religious articles for churches; ( iii) materials for the Government's own needs and not 
to be distributed further; (iv) live animals, seed s, plants, pesticides, fertilizer, reagents and other 
laboratory materials imported by or on behalf of  the Ministry of Environment, Agriculture and 
Fisheries in experimental farms for the developmen t of the agriculture, forestry and livestock sector; 
and (v) "consumption goods" to be used by social , cultural, recreational, sports, and non-profit 
institutions.  Non-profit institutions paid custom duties on the imported goods unless the goods were 
exempt from duty by law, and goods no longer ser ving their intended purpose could be resold in 
Cape Verde against payment of all duties and ot her impositions, subject to prior approval of the 
General Director of Customs and in accordance with the Law protecting Arts and Sciences (Law No. 108/V/99 of 2 August 1999).   
69. Registration fees fixed by Ordinance No. 31/86  of 6 September 1986, and collected by the 
Chambers of Commerce, varied for import and ex port operations.  All firms seeking registration as 
importers, whether foreign or domestically-owned, pa id an annual registration (and renewal) fee of 
CVE 10,000 (€ 90.69).  Likewise, all firms request ing registration as exporters, whether foreign or 
domestically owned, paid an a nnual registration (and renewal) f ee of CVE 5,000 (€ 45.35).  The 
registration fees covered the processing of registrati on applications, maintaining registration records, 
maintaining a database of impor t and export operations, payments for meeting expenses, travel 
expenses, and the dissemination of in formation and other activities.   
70. Some Members noted that two Chambers of Co mmerce acted as the Government's agent for 
commercial licensing, and inquired on what grou nds the Chambers could reject or delay the 
processing of an application, whether any economic n eed test would be applied, and how Cape Verde 
ensured the right to appeal the decisions of th e Chambers of Commerce.  Cape Verde was also 
requested to justify the size of the registration f ees, and the difference in the fee for importation and 
exportation, particularly as the procedures and require ments for import and export permits appeared to 
be identical.   WT/ACC/SPEC/CPV/5 
Page 20  
 
 71. The representative of Cape Verde replied that  Decree Law No. 50/2003 was under revision.  
The revised Decree Law would not specify the cond itions under which a Chamber could reject an 
application, but set out a positive standard of el ements and requirements to be included in the 
application.  An incomplete application would be re turned to the applicant, who would be invited to 
provide the missing data.  Neither the Conservatory  of Commercial Registry nor the Chamber of 
Commerce applied any economic needs test.  An admi nistrative appeal against a licensing decision of 
the Chamber of Commerce could be filed with the General Directorate of Commerce in the Ministry 
of Economy, Growth and Competitiveness, and appealed  further to the Minister.  An applicant could 
also seek recourse to the courts by filing a civil court case against the Chamber of Commerce within 
30 days from the date of rejection of the application.   In filing the case, the application could also seek 
financial compensation for damages.  He stressed that domestic and foreign enterprises paid the same 
registration fees.  However, the fees for importa tion and exportation would be harmonized, reflecting 
the cost of the services rendered, in a new Ordina nce in preparation.  Legislation would also be 
revised to reduce the processing time for the licen sing of commercial activities to seven days.   
72. Some Members noted that imports of rice, corn , sugar, and wheat flour had been liberalized 
from State trading and that the importation of these products was open to private enterprises meeting 
certain criteria, including prior registration, the ma intenance of appropriate domestic installations to 
store the products, and a proven ability to distribut e 30 per cent of the annual import volume outside 
the Santiago and São Vicente islands.  These Member s sought further clarifications regarding the 
import regime for staple products, notably whethe r imports were controlle d through discretionary 
licensing, any limits applied on the number of en terprises applying for imports, or whether private 
importers were competing with former State enterprises still in business. 
73. The representative of Cape Verde replied that the import regime for corn, rice and sugar was 
regulated by Decree Law No. 29/2002 of 9 December  2002, and wheat flour had been added to this 
regime through Ministerial Ordinance No. 6/2004 of 16 February 2004.  No State trading enterprises 
were competing with private importers of staple  goods, the number of enterprises applying to import 
was not limited at present, and imports were not restricted through discretionary licensing.  An obligation that the importer should distribute no less than 30 per cent of the annual import volume 
outside Praia and São Vicente was a legal requirement  still in force.  However, the licensing system 
was under review and Decree Law No . 29/2002 would be revoked.   
74. Recalling that the right to import and export go ods without investing in the territory of a 
Member was a fundamental right under the WTO, pr otected though provisions in Articles III and XI 
of the GATT 1994, some Members stated that the requirements associated with the right to import 
into and export from Cape Verde appeared to constitute a WTO-inconsistent restriction on trade,  WT/ACC/SPEC/CPV/5 
 Page 21 
 
 
 discriminating against imports vis-à-vis  domestic production.  In particular, discriminatory licensing 
fees and the need for a foreign en terprise to establish a branch or commercial presence in Cape Verde 
would seem an unnecessary barrier to trade, inconsiste nt with Article XI of the GATT 1994.  Foreign 
individuals and enterprises should be able to be recognized as "importer or exporters of record", 
maintain legal ownership and contro l of the goods, and pay all duties and taxes prior to transferring 
ownership to a local distributor.   
75. In reply, the representative of Cape Verde subm itted an action plan to update Cape Verde's 
commercial legislation, reproduced in document WT/ACC/CPV/21.  The licensing system for foreign 
trade operations and commercial operators would be revised to ensure compliance with WTO 
provisions.  Decree Law No. 50/2003 would be revised, addressing the registration procedures, the fee structure, and the special licensing requirements fo r importers of staple goods.  The right to import 
and export would be separated from the right to di stribute goods in Cape Verde.  However, his 
Government would maintain the requirement th at domestic and foreign enterprises establish a 
commercial presence in Cape Verde and register with  the Conservatory of Commercial Registry.  The 
new regulations, to be approve d by the end of August 2005, would revoke Decree Law No. 29/2002 
and Ordinances Nos. 2/1999, 3/2004 , 13/2004, 40/2004 and 43/2004.   
76. A Member sought a commitment that from the da te of accession Cape Verde would grant any 
natural or legal person, domestic or foreign, the right to be the importer of record of any product 
allowed to be imported into Cape Verde, recognizing that this was separate from the right to distribute 
goods in a the local market, consistent with Article s III and XI of the GATT.  Moreover, Cape Verde 
should confirm that full rights to import and to expo rt would be granted in a non-discriminatory and 
non-discretionary manner from the date of accessi on, and any requirements for registration or 
application for trading rights would be for custom s and fiscal purposes only, would not require actual 
investment in Cape Verde nor confer the right to di stribute there, and would not constitute a barrier to 
trade.   
A. IMPORT REGULATIONS 
- Ordinary customs duties 
- Customs tariff 
77. The representative of Cape Verde said that the existing customs legislation was old, 
fragmented and to some extent outdated.  Thus, a new extensive and comprehensive Customs Code 
was being prepared.  As per the timetable set out in the Action Plan (WT/ACC/CPV/12/Rev.1) he WT/ACC/SPEC/CPV/5 
Page 22  
 
 expected the Code to be approved by the National Assembly [in July 2005].  The draft Customs Code 
was submitted to the Working Party for review and comments.   
78. In accordance with Law No. 85/V/98 of 31 D ecember 1998, Cape Verde had adopted the 
Economic Community of West African States (ECO WAS) customs nomenclature, which was based 
on the 1996 version of the Harmonized System (HS) of Commodity Classification.  The ECOWAS nomenclature utilised ten digits, with the first six dig its indicating the HS chapter, its headings and its 
sub-headings; the seventh and eighth digits confor med with the ECOWAS statistical classification; 
and the ninth and tenth digits corresponded to the statistical classification at the national level.  
ECOWAS had established a roadmap to implemen t the HS 2002 nomenclature by December 2003.  
However, the implementation of this roadmap was be ing delayed.  He confirmed that his Government 
intended to adopt the HS 2002 nomenclature, and that Cape Verde's Schedule of Concessions and 
Commitments on Goods would be established in HS 2002.   
79. Custom duties were applied on imported goods  in accordance with th e MFN rates currently 
stipulated in Cape Verde's Customs Tariff.  As  set out in Law No. 14/VI/2002 of 19 September 2002 
and its amendments, customs duties had been redu ced on 1 January 2004 and modified in accordance 
with Law No. 48/VI/2004 of 26 July 2004.  The rat es had not been increased on any tariff line.  Duties 
on wheat flour had also been modified through Law No. 37/VI/2003 of 31 December 2003.  Customs 
duties were predominantly ad valorem  with seven tariff bands and base duty rates of zero, 5, 10, 20, 
30, 40 and 50 per cent.  The trade-weighted tariff average had ranged between 24 per cent in 1995 and 
about 31 per cent in June 2002.  Import duties cons tituted approximately 50 per cent of the taxes 
collected at the border in 2002 and early 2003.   
80. Asked whether Cape Verde was committed to main tain a common external tariff as a member 
of the ECOWAS or the West African Economic and Monetary Union (WAEMU), the representative of Cape Verde said that Cape Verde had jo ined ECOWAS, but not the WAEMU.  ECOWAS 
members did not apply a common external tariff, but plans existed to extend the Common Extenal 
Tariff (CET) of the WAEMU to the non-WAEMU members of ECOWAS, including Cape Verde, by 2007.  Several countries had begun the phasing in of the CET.  During a transitional period from 2005 
to 2007, countries could be granted waivers on a ta riff line basis under so-called Type A and Type B 
exceptions.  Cape Verde had solicited the list of Type A and Type B exceptions from ECOWAS.   
81. Preferential duty rates were applied to impor ts from ECOWAS or under free trade agreements 
with African Portuguese speaking countries (Angola,  Guinea Bissau, Mozambique and Sao Tome and 
Principe) and imports from Mauritania.  The free trade agreement with the African Portuguese speaking countries needed a prot ocol on rules of origin to become fully functional.    WT/ACC/SPEC/CPV/5 
 Page 23 
 
 
 [Cape Verde submitted its initial offer on goods  in November 2004 (see notice in document 
WT/ACC/SPEC/CPV/2) and a revised offer together with the applied tariff rates in July 2005 (see WT/ACC/SPEC/CPV/2/Rev.1).]   
- Other duties and charges 
82. The representative of Cape Verde said that a 35 per cent surtax on goods imported by 
"informal importers without currency outflows" ("ISDC") had been revoked by Law No. 121/V/2000 
of 5 June 2000.  He confirmed that Cape Verde applied an ECOWAS Community Levy of 
0.5 per cent on all imports from non-ECOWAS countri es.  This levy was imposed in accordance with 
ECOWAS Protocol A/P.1/7/96, approved by Resolution No. 67/V/97 of 31 December 1997.  As called for in the revised ECOWAS Treaty, this w as a West African regional integration levy to 
promote financial autonomy and raise revenu es for ECOWAS activities and institutions.   
83. Some Members stated that they would be very concerned at any attempt to seek exemptions 
from the provisions of Article II:1(b) of the GATT 1994 for particular kinds of measures such as the 
ECOWAS levy, recalling that the provisions of Article II:1(b) of GATT 1994 had been created to 
ensure the integrity of commitments on bound ta riffs.  Cape Verde was encouraged to fund the 
ECOWAS levy from general taxation revenue, or negotiate its elimination within ECOWAS.   
84. Responding to requests that Cape Verde elimin ate all ODCs and bind such duties and charges 
at zero in the Schedule of Concessions and Commitments on Goods, the representative of Cape Verde said that the application of the ECOWAS Community  Levy had been negotiated by all the Member-
States of ECOWAS and that Cape Verde was not in a position to eliminate this levy unilaterally.  He 
further stated that the ECOWAS Community Levy w as, in his view, the only charge currently applied 
by Cape Verde that fell within the meaning of "other  duties and charges" covered by Article II:1(b) of 
the GATT 1994.   
85. [The representative of Cape Verde confirmed that his Government would not list duties and 
charges in its Schedule of Concessions and Comm itments on Goods under Article II:1(b) of the 
GATT 1994 except for the ECOWAS Community Levy of  0.5 per cent, thereby binding such charges 
at that rate.  The Working Party took note of th is commitment]  [The representative of Cape Verde 
recalled that Cape Verde had bound  all tariffs in its Schedule of Concessions and Commitments on 
Goods.  He confirmed that Cape Verde would fro m the date of its accession to the WTO not apply 
other duties and charges within the meaning of Ar ticle II:1(b) of the GATT 1994 and would bind such 
other duties and charges at zero in relation to all products included in its Sc hedule of Concessions and 
Commitments on Goods.  He confirmed that me asures applied to imported goods of the kind 
described in paragraph [82] would be eliminated no later than the date of Cape Verde's accession and WT/ACC/SPEC/CPV/5 
Page 24  
 
 that after accession measures of this kind would not be reapplied or introdu ced.  The Working Party 
took note of these commitments.]   
- Tariff rate quotas, tariff exemptions 
86. The representative of Cape Verde said that Ca pe Verde did not apply tariff rate quotas on 
imports and had no plans to introduce such quotas in the future.   
87. The representative of Cape Verde said that ta riff exemptions were provided to encourage 
domestic economic activity and facilitate infrastru cture development in certain sectors, notably 
equipment for passenger transportation and car rental.  Air transportation companies were also exempt 
from duties for the importation of some equipment a nd spare parts.  Duly registered tourism or 
industrial enterprises applied for duty exemptions to the Directorate of Customs.   
88. Tariff exemptions were also permitted for the im portation of (i) goods donated to Cape Verde 
by international organizations; (ii) gifts offered to the Head of State, President of the National 
Assembly, and members of the G overnment; (iii) goods donated to religious missions recognized by 
the State; (iv) donations to the Red Cross, Carit as-Cape Verde and other hum anitarian organizations 
for disaster relief, reconstruction, etc.; (v) goods destin ed for the use of Heads of  State, dignitaries etc. 
on official visits to Cape Verde; (vi) goods im ported by Embassies, Consulates, Diplomatic Missions 
and their staff; (viii) luggage and personal effects brought in by passengers within permissible limits; 
(ix) staple goods such as maize, beans, rice, suga r, wheat, milk or cooking oil provided as food aid to 
his Government by bilateral donors or international organizations; (x) goods shipped by the Navy in 
their transit vessels; (xi) tourism and commercia l documents; (xii) Flags and the State's seal; 
(xiii) ship wreckage and ship debris; and (xiv) pr oducts destined for intern ational sports events 
(medals, trophies, pharmaceuticals, etc.).   
89. The representative of Cape Verde confirmed that any tariff rate quotas, if introduced in the 
future, would be applied and administered in conf ormity with WTO rules and regulations, including 
MFN and national treatment provisions.  The Work ing Party took note of this commitment.   
- Fees and charges for services rendered 
90. The representative of Cape Verde said that a cu stoms user fee of 1.04 per cent of the CIF 
value was applied to all imports pursuant to Mini sterial Ordinance No. 71/78 of 14 October 1978 as 
amended by Ministerial Ordinance No. 27/79 of 28 April 1979.  The customs user fee had been subjected to a study and compared to the actual costs incurred by the customs authorities.  He 
confirmed that the revenue from this fee was used to  pay the salaries of customs and police officials,  WT/ACC/SPEC/CPV/5 
 Page 25 
 
 
 to finance a general fund for the improvement of buildings, equipment, vehicles, etc. used by the 
Customs Service, and that surplus revenue  was transferred to the State budget.   
91. Importers were also charged for the purchase of  government publications and printed matter.  
The General Directorate of Customs published an  annual "customs bulletin " containing legislative 
provisions related to customs services, dispatches from Government members, circulars, service orders, etc.  This publication was sold at the Cust oms Treasuries.  Forms sold to importers included 
those purchased for the use of cust oms services and for carrying out customs-related activities.  The 
proceeds from the sale of government publications and printed matter were used for the publication of 
new materials.   
92. Among other fees or charges for services rendered applied to imports, he identified interest 
paid by importers for credit on customs duties, a late payment penalty or additional interest for 
delayed payment of duties and charges, and tax pe nalties or fines and other judicial charges.  
Importers granted credit, and who de ferred payment of the applicable custom duties, repaid their dues 
with interest of 10 per cent per annum.  Late payment of these dues was subject to a penalty or 
additional interest; no such charges applied if pa yment was made within th e established deadlines.  
Tax penalties, fines and other judicial charges app lied to importers for the storage of imported goods 
in customs warehouses beyond the legally established peri od, and penalties, fines or judicial expenses 
in connection with customs crimes and contraventions .  All these charges were applied uniformly to 
all imports under similar circumstances.   
93. He added that Cape Verde had eliminated various fees and charges imposed on imports, 
notably a Tonnage Tax levied as a charge per ton on vessels, revoked in accordance with Article 38 of 
Law No. 14/VI/2002 of 19 September 2002; a Special Storage tax introduced in 1960 for the storage of fuels; a Storage charge by th e Customs House for goods stored in its former warehouses; a General 
Customs Fee or General Emolumen t Tax of 9 per cent introduced in 1942; and a Stamp Duty of 
CVE 100 (€ 0.91), applied to each import and e xport declaration, and dating back to 1942. 
94. Some Members stated that the cu stoms user fee of 1.04 per cent ad valorem  did not appear to 
be consistent with Article VIII of  GATT 1994 and requested Cape Verd e to revise this fee.  The fee 
structure should be changed to approximate th e cost of services rendered for the processing of 
individual import transactions as well as for overa ll customs processing operations, and not to the 
value of the import.  The level of the fee should be adjusted to ensure that all revenue collected was 
used for the customs processing of imports.  If re venues were used for export processing, Cape Verde 
would also have to apply the fee to exports.  Cape Verde was reminded that revenue from a customs WT/ACC/SPEC/CPV/5 
Page 26  
 
 processing fee could not be used to cover expendi tures not related to customs processing to be 
consistent with Article V III of the GATT 1994.   
95. The representative of Cape Verde replied that  the study undertaken by the General Customs 
Directorate had concluded that the 1.04 per cent cust oms user fee was in conformity with Article VIII 
of the GATT 1994.  Nevertheless, his Government would be ready to reconsider the structure and 
level of the fee as well as its purpose, as necessary, to ensure conformity with Article VIII of the 
GATT 1994.  The fee would also be extended to exports.   
96. The representative of Cape Verde confirmed that from the date of accession any fees or 
charges imposed on or in connection with importati on and exportation, including but not limited to 
the current Customs User Fee of 1.04 per cent a pplied to imports, would be applied in accordance 
with Article VIII of the GATT 1994.  The Working Party took note of these commitments.   
- Application of internal taxes to imports 
97. The representative of Cape Verde said that va lue added tax (VAT) had been introduced on 
1 January 2004 pursuant to the VAT Regulation La w No. 21/IV/2003 of 14 July 2003.  VAT was 
applied a single rate of 15 per cent on goods and services.  VAT was computed using the destination 
principle, thereby exempting exports and taxing imports on the same basis as domestically-produced 
goods and services.  The tax base on imports includ ed customs duties and other applicable border 
fees.  All enterprises were subject to VAT as long as they undertook any taxable or import operation, 
and were residents or had an establishment or a representation in Cape Verde.   
98. The State did not pay VAT on operations in the exercise of its governmental authority.  As set 
out in the VAT Regulation Law, all services provide d by non-profit organizati ons were also exempt 
from VAT, as long as their objectives were specific ally described in the Law as being of a political, 
labour-union, religious, patriotic, humanitarian, ph ilanthropic, recreational, sporting, cultural, 
environmental or of a civic nature. 
99. As for product-specific VAT exemptions, Cape Verde exempted all staple goods and certain 
agricultural inputs, enumerated in Tables 4(a) and 4(b).  Articles 9 and 12 of the VAT Regulation Law 
established the criteria for granting such exemptions.  In addition, pursuant to Law No. 14/VI/2002 of 
9 September 2002, Laws Nos. 21/IV/2003 and 23/IV/2003 of 14 July 2003, and Decree Law 
No. 48/2004 of 26 July 2004, certain domestic opera tions were exempt from VAT.  Article 8, sub-
paragraphs (a)-(y), of Law No. 14/ VI/2002 listed the exempted domest ic operations.  The exemptions 
were applicable to both imports  and domestic production and all ju ridical persons, including foreign 
nationals, could apply for these VAT exemptions.  Exemptions from VAT were not automatic and had  WT/ACC/SPEC/CPV/5 
 Page 27 
 
 
 to be solicited in accordance with Decree Law No. 22/ 2003 of 14 July 2003.  The application form 
(MOD 108, annexed to the Decree Law) was addressed to the Minister of Finance and Planning:  The 
authority to approve or deny the requests had been delegated to the General Directorates of Customs 
and Contributions and Taxation, and in practice the decisions would normally be taken by the 
Directors of Customs or the Heads of the Finance Departments.  Applications for VAT exemptions 
were decided on within five working days.  A decision taken by the Director of Customs could be 
appealed to the General Directorate of Customs.  Appeals against decisions of the Heads of the 
Finance Departments were directed to the Gene ral Directorate of Contributions and Taxation, 
subsequently to the Minister of Finance, and fina lly to the Supreme Court.  The draft Customs Law 
included provisions for the reimbursement of VAT in these instances.   
100. The representative of Cape Verde said that Ca pe Verde had also applied Special Tax on 
Consumption (STC) on imports and domestically-p roduced goods since 1 January 2004.  The 
products subject to STC were lis ted in the Annex to the Regula tion on Special Consumption Taxes 
(Law No. 22/IV/2003 of 14 July 2003, as amended by Law No. 37/IV/2003 of 31 December 2003 and 
Law No. 48/VI/2004 of 26 July 2004).  The list and the corresponding tax rates is reproduced in 
Table 5.  The STC was applied at the point of sale in Cape Verde.  Responding to a query whether the 
STC levied upon importation and subsequently at the time of purchase could lead to double taxation 
of imports, he said that his Government would study this issue.   
101. He added that Cape Verde levied an Envir onmental Tax on imports to support environmental 
projects.  The revenues from this tax were tran sferred to the municipalities for environmental 
protection and basic sanitation works.  The environm ental tax, originally introduced in 1995 through 
Decree Law No. 128/IV/95 of 27 June 1995 and abolis hed on 1 January 2004 with the introduction of 
VAT, and had been reintroduced by Law No. 46/VI/2004 of 12 July 2004.  The Environmental Tax was levied on all non-biodegradable  wrappers made of metal, gl ass, plastic and other synthetic 
materials.  The tax amounted to 1 per cent of th e CIF value of goods imported in non-biodegradable 
packages and interior wrappings, and 10 per cen t on non-biodegradable packages and interior 
wrappings imported for packaging goods domestically.  Asked to provide further details concerning 
the tax rates and identify the agency determining wh ether a product would be subject to the tax and 
whether such decisions could be appealed, th e representative of Cape Verde said that Law 
No. 46/VI/2004 was under revision.  In this connecti on, the environmental tax would also be extended 
equally to domestic products.   
102. He noted that the introduction of VAT had permitted the consolidation and abolition of 
several tax measures including a tax on duty-free shops,  introduced in 1970 and abolished pursuant to 
Article 38 of Law No. 14/VI/2002, a Consumpt ion Tax on imported goods, a Special Tax on WT/ACC/SPEC/CPV/5 
Page 28  
 
 Consumption on alcohol and tobacco introduced in 1993, a Miscellaneous Tax for the recovery of 
minor charges, and a Consumption Tax on Local Production created in 1966.  He confirmed that 
VAT, the Special Tax on Consumption, and the E nvironmental Tax were th e only internal taxes 
currently applied to imports.   
103. The representative of Cape Verde confirmed th at his Government, from the date of accession, 
would ensure that Cape Verde's laws, regulations and other measures relating to internal taxes and 
charges levied on imports would be in full confor mity with its WTO obligations, in particular 
Article III of GATT 1994, and that it would implemen t such laws, regulations and other measures in 
full conformity with those obligations.  The Wo rking Party took note of these commitments.   
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
104. The representative of Cape Verde said that as per Decree Law No. 3/99 of 1 February 1999, 
no quantitative import restrictions or quotas were curre ntly in effect in Cape Verde.  However, in 
accordance with the revised ECOWAS Treaty and Decree Law No. 25/98 of 29 June 1998, some products were subject to international trade restri ctions.  Article 41 of the revised ECOWAS Treaty 
permitted measures to be taken to restrict or prohi bit imports for (i) national security considerations; 
(ii) the control of arms, ammunition and other military equipment; (iii) the protection of human, 
animal or plant health; (iv) the protection of public  morals; (v) the protection of Cape Verde's artistic 
and cultural treasures or property; (vi) the control of  narcotics, hazardous and toxic wastes, nuclear or 
radioactive products or any other material used in the development or explo itation of nuclear energy; 
and (vii) the transfer of gold, silver and precious  or semi-precious stones.  Raw diamonds could only 
be traded with countries participating in the Ki mberly Process Certification System pursuant to 
Decree Law No. 47/2004 of 15 November 2004.  Products subject to international trade restrictions or 
prohibited in Cape Verde are listed in Tables 6 and 7 respectively.   
Table 6:  Products subject to International Trade Restrictions
 
HS Number Description Justification 
2401; 2402; 2403 Tobacco Contract be tween the Government and the 
Cape Verdean Tobacco Company. 
2844.10; 2844.20; 2844.30; 2844.40 and 
1844.50 Radioactive Products Inte rnational Conventions on non-
proliferation of nuclear weapons. 
2844.10; 2844.20; 2844.30; 2844.40 and 
2844.50 Chemical Radioactive Elements and 
Radioactive Isotopes  International Conventions on non-
proliferation of nuclear weapons. 
7106.00  Silver 
7108.00  Gold 
7110.00  Platinum 
7110.21 and 7110.29 Palladium 
7110.31 and 7110.39 Radium 
7110.41 and 7110.49 Iridium 
7110.41 and 7110.49 Osmium In accordance with Article 41.3 of the 
Revised ECOWAS Treaty,  precious metals 
for monetary purposes may only be 
imported by the Central Bank.  Jewels may 
only be imported and sold by jewellers. 
Raw precious stones a nd metals may be 
imported by industries in accordance with  WT/ACC/SPEC/CPV/5 
 Page 29 
 
 
 HS Number Description Justification 
7110.41 and 7110.49 Ruthenium International Conventions. 
8401. 00  Nuclear Material International Conventions on non-
proliferation of nuclear weapons. 
9301; 9302; 9303; 
9307 Weapons 
9306.10 Munitions Restrictions for security reasons under 
ECOWAS Agreement on Non Proliferation  
9705. 00  Collections and speci mens for zoology, botany, 
mineralogy, anatomy coll ections, or collections 
of a historic, archaeol ogical, palaeontology, 
ethnographic or numismatic interest: Protection of biodiversity and national 
treasures of cultural, artistic, historic, 
archaeological value. 
9706. 00 6 Antiquities with more than 100 years.  Protection of national treasures of artistic, 
historic, archaeological value 
 
105. He noted that according to Cape Verdean Law only the Government, through the Ministry of 
Defence and the Ministry of Home Affairs, coul d import heavy weapons a nd munitions for defence 
and security use.  ECOWAS controlled the impor tation of hand-held w eapons and munitions.  
Imports, exports and re-exports of gold for monetary use, gold in bars or gold in any other unwr ought 
or semi-manufactured form was subject to cont rol by the BCV.  The BCV used precious metals, 
including gold and silver, as reserves or money and these restrictions were, in his view, covered by 
Article XX of the GATT 1994.  He confirmed that, except for tobacco, none of the goods subject to 
international trade restrictions were produced in Cape Verde.  Tobacco production in Cape Verde was 
insignificant.  A private company - the Cape Verd ean Tobacco Company (Sociedad Cabo Verdiana de 
Tabaco) - held an exclusive right to import tob acco until 2012 in accordance with a contract between 
the enterprise and his Government.  Cape Verde prohibited (non-automatic licensing) the importation 
of nuclear and radioactive products or waste in  accordance with international non-proliferation 
treaties.  Other products prohibited in  Cape Verde are listed in Table 7. 
Table 7: Goods whose importation is prohibited in Cape Verde  
Goods whose importation is prohibited in Cape Verde 
1 Animals and animal products from foreign areas where there is epizooty.  This prohibition did not apply 
to all epizooties but only to those which Cape Verde is not immune to and which are considered 
dangerous to the national livestock (animal health), pl ants, vegetables (flora) on  the principle of risk 
analysis and international norms and standards.    
2 Elder tree berry.  
3 Unauthorized foreign lottery tickets or its fractions.   
4 Boxes or gathered bales and bundles, with the same mark and packed in one volume containing different 
or the same kind of goods, which are imported without declaration of the number and the total weight of 
the boxes or gathered bales.   
5 Cannabis Sativa L, known as "Indian Hemp". 
6 Imitations of postage-stamp, postmark and other postal stamps in use in Cape Verde  
7 Containers manufactured with terneplate packing goods other than mineral oils and, when empty or 
unassembled, are not consigned exclusively to companies which sell mineral oils.  
8 Books when counterfeited editions and fraudulent copies of literary and artistic works protected by law 
and international conventions.   
9 Medicaments of secret composition or not properly registered.   
10 Noxious medicaments and foodstuffs pernicious to public health. 
11 Goods with false factory marks, false trade marks or false origin or provenance, contravening laws and 
international agreements in effect.   WT/ACC/SPEC/CPV/5 
Page 30  
 
 Goods whose importation is prohibited in Cape Verde 
12 Goods brought by ships sailing in contravention of international conventions.  
13 Pornographic objects, pictures, books, printed pape rs, recorded films, drawings, stamps, written libel and 
publications, offensives to morals and public decency  
14 Plants and any of its parts coming from infected areas of phylloxera or of any other epiphytic disease .  
15 Roulettes and other gambling games without previous authorization.  
16 Wines and liquors with any geographical denomi nations legally defined or any others which can 
occasion mistakes about their real origin, when they are not produced  in the wine-growing areas known 
under those denominations, or with such denominations as "kind of", "type", "rival of", "superior to" and similar logos.  
17 Distilled alcoholic drinks which contain essences or chemical products such as: absinth, benzoic 
aldehyde, salicylic ethers, hyssop and other products recognized as noxious for human health.  
 
106. On import licensing, the representative of Cape Verde said that Decree Law No. 51/2003 of 
24 November 2003 had introduced a non-automatic licensing requirement on all products imported 
into and exported from Cape Verde.  The new procedures had been made effective through 
Ministerial Ordinance No. 13/2004 of 14 June 2004, revoking Form A of the Foreign Trade Title 
(FTT) and the FTT – Rectifying Title, and creating new forms to be completed as per the instructions 
annexed to Ministerial Ordinance No. 3/2004 of 26 January 2004.  Ministerial Ordinance No. 13/2004 
had been applied retroactively to the date when  Ministerial Ordinance No. 3/2004 had gone into 
effect.  Travellers luggage a nd personal effects were exempt from the non-automatic licensing 
requirement according to Ministerial Ordinance No. 4/2004 of 26 January 2004.   
107. The General Directorate of Commerce under the Ministry of Economy, Growth and 
Competitiveness was responsible for regulating an d implementing the licensing procedures.  To 
obtain the import licence, a licence form (reproduced in Ministerial Ordinance No. 13/2004) had to be 
completed and submitted for approval to the Departme nt responsible for trade on the island where the 
importation or trading operation was to take place.  There were no fees associated with the import 
licence.   
108. Asked whether the granting of a licence was discr etionary, he replied that the granting of a 
licence was within the competence of the Genera l Directorate of Commerce in accordance with 
Article 6 of the Decree Law No. 51/2003.  The Gene ral Directorate of Commerce could delegate this 
authority to other entities, but these entities would remain under the general guidance of the 
Directorate in exercising their function.  A refusal  by the General Directorate of Commerce to grant a 
licence could be appealed to the Minister of Econo my, Growth and Competitiveness.  If this appeal 
was denied by the Minister, the matter could be brought to the Administrative Courts or to the Common Courts.   
109. Some Members stated that contrary to the "s tandstill principle", which ensured the neutrality 
of the negotiation process and the negotiating credib ility of an acceding Government, Cape Verde had 
suddenly and without consultation instituted a non- automatic licensing procedure on all imports and  WT/ACC/SPEC/CPV/5 
 Page 31 
 
 
 exports.  These Members would appreciate an explana tion for this step, and further information on the 
purpose, operation and nature of this non-automa tic licensing requirement, notably who would be 
eligible to apply for the licence, the criteria em ployed in issuing licenses, and whether Cape Verde 
intended to narrow the coverage of this licensing regi me to a limited number of  products of particular 
interest or concern.  Cape Verde was also requested to complete the WTO Import Licensing 
Questionnaire for this measure.  Members stated that the application of broad, non-automatic 
licensing requirements to substantially all trade n eeded to be justified in terms of specific WTO 
provisions or be deemed inconsistent inter alia  with Article XI of the GATT 1994.   
110. The representative of Cape Verde replied that Decree Law No 51/2003 was being revised to 
bring it into conformity with the WTO Agreement on Import Licensing Procedures.  The revised legislation distinguished between imports subject to non-automatic licensing, automatic licensing and 
imports totally exempt from licensing.  Exempt  were imported goods w ithout commercial value 
(under terms to be defined in a new Ordinance); temporary imports, re-im portation, re-exportation, 
goods in transit and "active and passive improvement  operations"; imports subject to special customs 
regimes (franc stores, bonded warehouses, franc deposit and special customs storage); manufactured 
goods to be used for congresses, fairs, internationa l exhibitions and similar events; provisions for 
ships and aircraft in accordan ce with applicable legislation;  goods apprehended, abandoned, 
shipwrecked or salvaged and sold at auction; and imports "without expenditure of currency" 
belonging to air and maritime navigation companies for their exclusive use.   
111. All licenses delivered under the new regime w ould be automatic, except for goods subjected 
to sanitary or phytosanitary requirements, security cont rols, or mandatory restrictions required by law.  
These goods would be subject to non-automatic licensing.  In such cases, the applications should be accompanied by certificates of compliance issued by  the sanitary or phytosanitary authorities, the 
security control authorities, or other competent au thorities depending on the nature of the goods.  
A non-automatic licence would be delivered with 21 days from the date the customs declaration was 
presented to Customs, whereas an automatic licence became effective upon presentation of the 
customs declaration.  The new system would elim inate the Foreign Trade Titles (TCE), but TCEs 
already issued would remain in effect until the end of their validity.  Export operations were exempt 
from licensing pursuant to Article 9 of Law No. 92/IV/93.   
112. Having reviewed the draft Decree Law on Import and Export Licensing, a Member stated that 
Articles 6 and 7 appeared incompatible with th e Agreement on Import Licensing Procedures by not 
distinguishing clearly between goods subject to au tomatic and non-automatic licensing.  The list of 
goods subject to licensing and the criteria for obtaining a licence should be clear, exhaustive and 
publicly available.  Cape Verde was also requested  to clarify whether a licence was required for each WT/ACC/SPEC/CPV/5 
Page 32  
 
 individual import operation, the term of validity of  a licence, the application of licence fees and the 
legal basis for such fees, and to elaborate on the provisions concerning "imports without commercial 
value".   
113. In reply, the representative of Cape Verde ac knowledged that an exhaus tive list of products 
subject to non-automatic licensing did not exist, and that decisions would be taken case-by-case by the Director General of Customs.  Most products  subject to non-automatic licensing belonged under 
Sections I, II and XVIII of the Harmonized System.  A licence was valid for one year, applicable to 
multiple transactions, and could be extended for a si milar period upon request.  According to the draft 
Ordinance, the licence fee amounted to CVE 20,000 (€ 181).  Ordinance No. 4/2004 of 24 January 2004 stipulated that goods carried by travellers and destined for personal use were 
considered to be without commercial value provided the luggage did not exceed 150 kg and 
CVE 100,000 (€ 907) in value.   
114. The representative of Cape Verde confirmed th at his Government would eliminate from the 
date of accession, and would not introduce, reintr oduce or apply quantitative restrictions on imports or 
other non-tariff measures such as quotas, bans, perm its, prior authorization requirements, licensing 
requirements or other requirements or restrictions ha ving equivalent effect that could not be justified 
under the provisions of the WTO Agreements.  The import licensing regime from the date of 
accession would be fully in accordance with all re levant provisions of the WTO, including the 
Agreement on Import Licensing Procedures.  He furt her confirmed that the legal authority of the 
Government of Cape Verde to suspend imports or to apply licensing requirements that could be used 
to suspend, ban or otherwise restrict the quantity of trade would be applied from the date of accession 
in conformity with the provisions of WTO Agre ements, including the GATT 1994, the Agreements 
on Import Licensing Procedures and Safeguards, and the Understanding on Balance-of-Payments 
Provisions of the GATT 1994.   
- Customs valuation 
115. The representative of Cape Verde said that the Brussels Definition of Value (BDV) currently 
served as the basis for the calculation of customs dut ies and other customs charges in line with Decree 
No. 45.790 of 3 July 1960.  With the BDV, the determination of the cu stoms value of imported 
merchandise was based on its normal value.  Cape Verde also applied reference or minimum import 
prices on poultry, as set out in Regulatory Decree No . 2/2002 of 2 August 2002.   He confirmed that 
Cape Verde envisaged the elimination of import reference prices or minimum import prices, as required by the WTO Agreement on the Implementa tion of Article VII of General Agreement on 
Tariffs and Trade 1994 (Customs Valuation Agreement).    WT/ACC/SPEC/CPV/5 
 Page 33 
 
 
 116. The new Customs Code [to be adopted by July 2005] included valuation rules in Section IV 
(Customs Value of Goods).  He provided an Action Plan for compliance with the WTO Customs 
Valuation Agreement in document WT/ACC/CPV/14 a nd its subsequent revision.  As noted in the 
Action Plan, his Government was requesting a tr ansition period until January 2009 for the full 
implementation of the Customs Valuation Agreement.  In his view, this transition period was needed 
to establish the necessary institutions and endow  the customs administration with personnel, 
equipment, databases etc.  Customs personnel also required training in modern practices to combat 
fraud, risk evaluation, investigations, post declaratio n auditing etc. in order to prevent loss of customs 
revenues from under-invoicing and other fraud.  Technical and financial assistance from Members and the relevant international orga nizations was needed for the training of customs officials dealing 
with valuation as well as for the drafting of the new Regulations and Interpretative Notes.  A Member 
requested Cape Verde to make reference to Article s 3 and 7 of the Customs Valuation Agreement and 
Decision 3.1 and paragraph 2 of Decision 4.1 of  the WTO Committee on Customs Valuation in its 
revised Action Plan. 
117. Disputes arising from customs valuation decisions were reviewed and decided by the 
Customs Technical Council, an administrative bod y including representatives of the Department for 
Public Administration and the private sector.  Judicial appeals of customs valuation decisions could be brought before the Fiscal and Customs Court, and c ould be further appealed to the Supreme Court of 
Justice of Cape Verde. 
118. [In response to questions concerning elements of the Customs Valuation Agreement already in 
place and its functioning, the representative of Cape Verde said that in accordance with the current 
legislative provisions, the right to appeal referred to in Article 11 of the Agreement stipulating that the importer had the right to appeal first to the administrative courts, and also to the Fiscal and Customs Courts, Common Courts or tribunals independent of the Government.  Thus, the right to appeal to an 
independent administrative tribunal was already in effect, as were the following other aspects of 
Cape Verde's customs regime: the protection of c onfidential information (Article 10) and a surety 
bond system (Article 13) provided for in Article 76 of the Draft Customs Code; the publication of 
legislation, regulations and administrative deci sions of general application on customs issues 
including valuation (Article 12), provided for in  Article 264 of the Constitution.  The definitions 
provided in Article 15, the importer's right to a written explanation of how the customs value was 
determined (Article 16), and prov isions ensuring the precise implementation of Articles 9-13 related 
were contained in the new Customs Law which was sl ated for enactment during 2005.  To the extent 
not already provided for in law, the provisions of  Articles 9-13 and 15-16 would be implemented from 
the date of accession. WT/ACC/SPEC/CPV/5 
Page 34  
 
 119. The representative of Cape Verde requested that the Working Party grant a transitional period 
from the date of its accession to allow it to obtain and utilize technical assistance to assist in the full 
implementation of the obligations of the Agreement, in  particular those containe d in Articles 1-6, 7, 8, 
and 14.  Full implementation of the Agreement on Customs Valuation would be carried out gradually 
and progressively and would be completed, at the latest prior to 1 January 2009, in accordance with 
the timetable contained in Table 8 below.  He conf irmed that during the transition, Cape Verde would 
not be required to observe the provisions of Article 7.2(f) with respect to selected imports, thereby 
allowing for the application of minimum import values to be applied to imports of poultry covered by 
HS 0207.11 - 0207.14 for the purposes of customs valu ation during the transition period.  All other 
aspects of Article 7 would be observed from the date  of accession.  If such a transitional period were 
granted, Cape Verde's deviations from the provision s of the Agreement would be strictly limited to 
these Articles, and all other provisions of the Ag reement would be implemented for all imports. 
120. During this period, Cape Verde would ensure th at its regulations under current legislation in 
place and additional legislation implemented duri ng the transition concerning customs valuation 
would be applied on a non-discriminatory MFN basis to all imports.  Any changes made in its laws, 
regulations and practice during the transition period would not result in a lesser degree of consistency 
with the provisions of the Agreement on Customs Valuation than existed on the date of accession.  
Cape Verde would participate in the work of the Committee on Customs Valuation and would seek 
out all available technical assistance, including under Ar ticle 20.3 of the Agreement, to ensure that its 
capacity to fully implement the Agreement upon expiration of the transition period was assured.  The 
representative of Cape Verde presented an Action Pl an setting out details of the steps that still 
remained to be taken in order to achieve this objective and a timetable for each step (Table 8).  WT/ACC/SPEC/CPV/5 
 Page 35 
 
 
 Table 8:  Action Plan for Implementation of the Agreement on Customs Valuation  
Action Implementation 
Date 
Legislative Implementation  
 
Enactment of new Customs Law (d rafted in first half of 2005): 
 
- Currency conversion notificatio n requirement (Article 9)  
- Protection of confidential information (Article 10)  
- Right of administrative appeal and appeal of  administrative decisions to an independent 
tribunal (Article 11)  
- Publication of legislation, re gulations and administrative decisi ons of general application on 
customs issues including valuation (Article 12)  
- Sureties for the release of merchandise (Article 13)  
- Definitions (Article 15)  
- Importer's right to an explanation in writi ng from the customs administration concerning the 
determination of customs value (Article 16) 
- Prohibited forms of Valuation when transactio n value or transaction value of identical or 
similar merchandise is applicable  (Ar ticle 7(a) (b), (c),  (d), (e) and (g)) 
- Establishment that the Annexes I, II and III are integral  parts of the Agreement (Article 14) 
with delayed implemen tation of provisions related to Articles 1-6, 7:2(f), and 8 
 
Training :  Initial Seminar/Workshop on the principles  of the GATT/WTO Agreement of Value, by 
WTO Secretariat Completed or Upon 
Accession 
Training :  Additional Seminars and Workshops on the Customs Code: Adaptation and 
familiarization of the Customs Code, by the user. 
 
Training on post declaration or post dispatch auditing--W orkshops/seminars  
 
Preparation Customs Valuation Manual Prior to 
1 January 2006 
Training 
Technical training on determination of Customs Va lue: Course to train trainers for selected 
Customs functionaries identified as having the capacity to teach. 
 
Training on risk evaluation:  Workshops/seminars presented by specialists in "risk evaluation". Prior to 
1 January 2007 
Creation of a technical information system includi ng a reference data base on the value of identical 
or similar goods:  Data base for the evaluation of  identical or similar me rchandise to implement 
usage of identical and simila r merchandise transactional va lue (methods 2 and 3 applied 
sequentially). 
 
Evaluation of the Customs Code implementation. Prior to 
1 January 2008 
Additional Legislative Implementation, e.g., Regulations to the Customs Law, activating the 
provisions of the Customs Law for the following measures: 
 
- Transaction valuation (Article 1) 
- Transaction value of iden tical goods (Article 2) 
- Transaction value of similar goods (Article 3) 
- Imputed value (Article 5) 
- Computed value (Article 6) 
- Fallback method, with elimination of use of  minimum import values (Article 7:2(f))for 
poultry 
- Additions to the price paid or payable (Article 8)  
Adoption of  Decision 3.1 of the Committee on Customs Valuation on the Treatment of Interest 
Charges in the Customs Value of Imported Goods  
 
Adoption of paragraph 2 of Decision 4.1 of th e Committee on Customs Valuation on the Treatment 
of Interest Charges in the Customs Value of Im ported Goods and the Valuation of Carrier Media 
Bearing Software, for Data Processing Equipment. Prior to 
1 January 2009 
Full implementation of Agreement on Customs Valuation Prior to 
1 January 2009 
 WT/ACC/SPEC/CPV/5 
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 121. The representative of Cape Verde stated that legislation on the valuation of imports for 
customs and taxation purposes conforming to th e requirements of the Agreement on Customs 
Valuation would be enacted prior to Cape Verd e's accession to the WTO, but that some of the 
provisions would not immediately go into effect.  Cape Verde would progressively implement the 
Agreement on Customs Valuation in accordance with  the Action Plan in Table 8, and with the 
understanding that during this period the scope of implementation of other aspects of the Agreement, 
as described in paragraphs [118 to 120], would be  applied by Cape Verde.  Full implementation 
would start from 1 January [2007][2009].  The Working Party took note of these commitments.] 
- Rules of origin 
122. The representative of Cape Verde said that gene ral non-preferential rules of origin had been 
established through the Preliminary Instructions on Customs Tariff, Annexed to Decree No. 45.790 of 
3 July 1960.  As a Member of ECOWAS, Cape Verde also followed the ECOWAS Protocol on rules 
of origin, which he considered to  be consistent with the principles set forth in the WTO Agreement on 
Rules of Origin.  According to the ECOWAS prot ocol, origin was determined on the basis of the 
wholly obtained, substantial transformation, or va lue-added criterion.  The Preliminary Instructions 
were being revised, and the Customs Code [adopted in  July 2005] incorporated provisions on rules of 
origin in Section III, Articles 20 to 24.  The new provisions had been drafted to ensure conformity 
with the WTO Agreement on Rules of Origin.  Pursua nt to Article 20 of the new Customs Code, Cape 
Verde determined the origin of manufactured go ods according to wholly- obtained or substantial 
transformation criteria.   
123. Having reviewed the draft rules of origin provisions in the Customs Code, a Member 
requested clarification of terms such as transformation resulting in "specific properties and composition", "economically justifiable" transf ormation, and manufacturing undertaken in an 
enterprise "equipped to that effect", and how these requirements were met in practice.  Cape Verde 
was also asked to define more precisely the "com petent entity" authorized to issue certificates of 
origin.   
124. In reply, the representative of Cape Verde sai d that Article 20 of the draft Customs Code 
intended to confer origin based on substantial tr ansformation, the processing of raw materials into 
finished products, and that an enterprise would not be wrongly identified as the manufacturer if the 
enterprise was manifestly unable to perform th e manufacturing or transformation process.  The 
competent entity authorized by the Government to issue certificates of origin differed from one 
product to another.    WT/ACC/SPEC/CPV/5 
 Page 37 
 
 
 125. Asked whether Cape Verde would consider the European Community as one entity for origin 
purposes, the representative of Cape Verde noted th at the WTO work programme on rules of origin 
was ongoing and currently the provisions of Annex II of the Agreement on Rules of Origin were in 
effect.  In the absence of specific WTO principles and provisions on this issue, Cape Verde was 
deferring a decision on this matter.  Cape Verde woul d also analyze this issue within the context of 
ECOWAS regional integration.    
126. A Member sought confirmation that Cape Verde would revise its Customs Law to incorporate 
the requirements of Article 2(h) and Annex II, pa ragraph 3(d) of the WTO Agreement on Rules of 
Origin, i.e. that for non-preferential and prefer ential rules of origin, r espectively, the customs 
authority would provide within 150 days, upon the requ est of an exporter, impor ter or any person with 
a justifiable cause, an assessment of the origin  of the import and outline the terms under which it 
would be provided, and that any request for such an assessment would be accepted even before trade 
in the goods concerned began.  The representative of  Cape Verde replied that the new Customs Code 
included provisions consistent with the WTO Agreement on Rules of Origin. 
127. The representative of Cape Verde stated that, from the date of accession, Cape Verde's laws 
and regulations for preferential and non-preferential rules of origin would comply fully with the WTO 
Agreement on Rules of Origin.  He further confirme d that Cape Verde's rules of origin would be 
established in law and notified to the WTO Secretar iat and the Committee on Rules of Origin by the 
time of accession.  The requirements of Article 2(h)  and Annex II, Paragraph 3(d) of the Agreement 
would be fully implemented prior to accession.  He al so stated that, from the date of accession, the 
Customs Authorities would provide for an assessment of  the origin of the import upon the request of 
an exporter, importer or any person with a jus tifiable cause.  Any request for such an assessment 
would be accepted even before trade in the goods concerned began.  Any such assessment would be 
binding for three years.  The Working Party took note of these commitments.  
- Other customs formalities 
128. The representative of Cape Verde said that the owner or consignee of  imported goods could 
initiate procedures for customs clearance before the arrival of merchandise in Cape Verde.  Imports 
and exports of merchandise for personal use or personal gifts which were not of a commercial 
character and valued at less than CVE 50,000 (€ 454)  were subject to a simplified declaration.  All 
other merchandise was subject to a more detailed declaration, including information on the product 
characteristics (weight, size, quantity), tariff type, co untry of origin, country of exportation, freight, 
destination, and value.  For imports, the decl aration had to be accompanied with relevant 
documentation such as the certificate of origin, commercial invoice, sanitary and phytosanitary WT/ACC/SPEC/CPV/5 
Page 38  
 
 certificates, transportation (air or sea) and insura nce certificates, the single administrative document 
(SAD), etc.  The import declaration required approv al by the General Directorate of Commerce when 
the merchandise was valued at more than CVE 100,000 (€ 907).  
129. A Member requested Cape Verde to justify the approval requirement for import declarations 
and provide information on the timeframe involve d, the criteria for approving or rejecting the 
declarations, and the right of appeal.  The repr esentative of Cape Verde replied that Decree Law 
No. 51/2003 of 24 November 2003, which had instituted this requi rement, was under revision.   
130. Asked about the time needed to clear goods  through customs, the representative of 
Cape Verde said that the processing of a customs declaration was normally undertaken within 48 
hours of its submission by the interested party, af ter which the owner or consignee of the imported 
goods would be required to pay the duties and impositi ons due within ten days.  A fine was imposed 
for delayed or non-payment of the impositions due.  Following the payment of the customs duties and 
unloading and conveyance fees, the merchandise wa s to be removed from the warehouse within 30 
days for air transported cargo, and 90 days for car go transported by sea.  Non-compliance could lead 
to a report giving official notice and initiation of procedures for public sale of the consignment.   
- Preshipment inspection 
131. The representative of Cape Verde said that Cape Verde currently did not employ any 
mandatory pre-shipment inspection scheme.   
132. The representative of Cape Verde stated that if preshipment inspection requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Preshipment Inspection and other WTO relevant  agreements.  Cape Verde would take full 
responsibility to ensure that such enterprises operati ng on its behalf complied with the provisions of 
WTO Agreements including the Agreements on Techni cal Barriers to Trade, the Application of 
Sanitary and Phytosanitary Measures, Import Licensing Procedures, the Implementation of 
Article VII, Rules of Origin, the Implementati on of Article VI (Antidumping), Subsidies and 
Countervailing Measures, Safeguards, and Agriculture .  The establishment of charges and fees would 
be consistent with Article VIII of the GATT 1994 an d Cape Verde would ensure that the due process 
and transparency requirements of the WTO Agreem ents, in particular Article X of the GATT 1994 
would be applied.  Decisions by such firms coul d be appealed by importers in the same way as 
administrative decisions taken by the Government of  Cape Verde.  The Working Party took note of 
these commitments.  WT/ACC/SPEC/CPV/5 
 Page 39 
 
 
 - Anti-dumping, countervailing duties, safeguard regimes 
133. The representative of Cape Verde said that Decree-Law No. 46828 and Decree-Law 
No. 46829 of 5 January 1966, modified by Decree-L aw No. 578/70 of 24 November 1970, set out the 
anti-dumping and countervailing duties regime in Cape Verde.  Since 1975, no cases had been filed or 
investigated as these Laws were obsolete and would ha ve to be revised to comply with the relevant 
WTO provisions.   
134. As promulgated in Decree Law No. 3/99 of 1 February 1999, a general safeguard-type 
provision had been included in Article 3 of the Trad e Liberalization Law.  This provision provided for 
the application of safeguard measures when the importation of goods caused, or threaten to cause, 
serious damage to the national economy or to public health.  Cape Verde appl ied this safeguard type 
measure on poultry from all countries.  He added th at Cape Verde would continue to develop and 
revise its safeguard measures regime to comply with the WTO Agreement on Safeguards after 
accession.   
135. The representative of Cape Verde confirmed th at Cape Verde would apply safeguard, anti-
dumping, or countervailing duty measures only after notifying and implementing laws in conformity 
with the provisions of WTO Agreements on Safe guards, the Implementation of Article VI of the 
GATT, and on Subsidies and Countervailing Measures,  and that after accession Cape Verde would 
apply any such measures only in conformity with the relevant WTO provisions.  The Working Party took note of these commitments. 
B. EXPORT REGULATIONS  
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
136. The representative of Cape Verde said that Cape Verde applied no export duties.  The 
registration and licensing requirements for engaging in exportation were identical to those for imports.  
Exported goods complied with formalities on excha nge operations and with all quality requirements, 
rules of origin or other norms requi red by law or by international accord  subscribed to by Cape Verde. 
- Export restrictions 
137. The representative of Cape Verde said that  in accordance with Decree-Law No. 151/87 of 
26 December 1987, Cape Verde no longer applie d quantitative restrictions on exports nor did 
Cape Verde participate in any voluntary export restraints or orderly marketing arrangements.  
Cape Verde did not apply minimum export prices on any product.  WT/ACC/SPEC/CPV/5 
Page 40  
 
 138. Cape Verde prohibited the exportation of en dangered flora or fauna covered by the 
Washington Convention (CITES), even  though Cape Verde was not a si gnatory to this Convention.  
The prohibition was covered by the provisions of  Law No. 86/IV/93 of 26 July 1993, and was 
enforced by customs officers in Cape Verde.  Fo r flora and fauna not exp licitly prohibited, licenses 
were issued by the Ministry of Enviro nment, Agriculture and Fisheries.   
- Export subsidies 
139. The representative of Cape Verde said that Cape Verde had no export financing programs.  
An import duty drawback system had been cr eated by Decree Law No. 32115 of 7 July 1942, 
providing for the full or partial reimbursement  of import duties on merchandise used in the 
manufacture of products subsequently  exported.  The duty drawback la w, though legally still in effect, 
had in practice ceased to be applied and had b een replaced by incentives provided through Decree 
Law No. 108/89 of 30 December 1989 establishing th e Industrial Statute, and Law No. 99/IV/93 of 
15 December 1993 approving the regime for Free Ente rprises.  He confirmed that no duty drawback 
programs were presently applied to agricultural pr oducts.  Decree Law No. 32115 had created a duty 
drawback scheme for olive oil, vegetable oil for human consumption, tomato ketchup, metal sheets, 
and cardboard destined for the fish conservation industry.  However, this programme had been 
discontinued.  At present, Cape Verde did not envisage creating any new duty drawback law.   
140. Law No. 92/IV/93 and Decree Law No. 108/89 provided fiscal and customs incentives for the 
export and re-export of goods and services.  The fis cal incentives included a five year reduction in 
contributions and taxes on profits.  This five year period could be extended on a year-by-year basis for 
a maximum of ten years.  The customs incentives in cluded duty exemptions on intermediate products 
and raw materials (except petrol) used in the production of exported goods.  Exporters importing 
merchandise, including raw materials, destined fo r re-export could do so through a suspension of the 
customs regime.  Customs duties, fees and char ges, and other taxes on imported goods that had 
subsequently been exported, incorporated as raw ma terials in exports, or used in rendering export 
services, were refunded upon request within 120 days  from the date of export or re-export.  Decree 
Law No. 108/89 provided duty exemptions to indust rial enterprises for imported raw materials, 
equipment and construction materials.  The tax exem ptions were available to all enterprises, whether 
domestic or foreign-owned, and were  not contingent on exports.   
141. A Member sought further information on the operation of the duty-drawback scheme, in 
particular on how Cape Verde ensured that the inputs exempt from import duties under these schemes 
were used in the production of exports, and how  import duties refunded through these programs did 
not exceed the amount of duties paid or payable.  In response, the representative of Cape Verde  WT/ACC/SPEC/CPV/5 
 Page 41 
 
 
 confirmed that import duties refunded through the pre-independence and now defunct duty drawback 
scheme never exceeded the amount of duty paid.  He  considered the duty drawback scheme to be 
consistent with the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement).   
142. He added that merchandise could be stored  in customs bonded warehouses with customs 
duties and taxes pending.  Two types of warehouses existed in Cape Verde, the storage warehouses for commercial needs and the industrial warehouses for industrial needs.  In addition, goods could be 
"temporarily admitted" for re-export, either unchang ed or with active improvement.  He confirmed 
that goods subject to the "temporary admission" regime were free of customs duties and had to be exported.  Temporary exports were also permitte d whereby the goods were exported for re-import 
either unchanged or with passive improvement.  
143. A Member requested exhaustive information on the incentives and eligibility criteria for the 
trade promotion programmes operated by CAPEVER DE Investments.  Based on the information 
available, it would appear that investments were a ppraised according to several criteria, one of which 
was national value added.  This Member pointed out that a programme would constitute a prohibited 
subsidy according to Article 3 of the Agreemen t on Subsidies and Countervailing Measures to the 
extent that the programme provided a benefit to companies contingent on the use of domestic over 
imported goods.  Cape Verde was invited to provi de a comprehensive description of its subsidy 
programmes to the Working Party.  Some Memb ers noted Cape Verde's impending graduation from 
LDC status and sought a commitment that Cape Verde accept all aspects of Article 3 of the ASCM, 
including Article 3.1(a) prohibiting subsidies contingent upon export performance.   
144. In reply, the representative of Cape Verde said that CAPEVERDE Investments had been 
established inter alia  to promote exports and re-exports.  CAPEVERDE Investments identified local 
products or enterprises with export potential; organized seminars, conferences and training; 
participated in trade fairs; researched on poten tial export markets; and supplied market data to 
interested entities.  He provided an Action Plan, to be completed by the end of 2007, for the revision 
of incentives to national production and foreign investment in document WT/ACC/CPV/22.   
C. INTERNAL POLICIES AFFECTIN G FOREIGN TRADE IN GOODS  
- Industrial policy, including subsidies 145. The representative of Cape Verde confirmed that  the legislative basis for the provision of 
subsidies comprised (i) the Foreign Investment Law No. 89/1V/93 of 13 December 1993; (ii) Law 
No. 92/IV/93 of 15 December 1993; (iii) The In dustrial Statute, Decree Law No. 108/89 of 
30 December 1989; (iv) the Tourism Utility Law No. 55/VI/2005 of 10 January 2005; (v) Law WT/ACC/SPEC/CPV/5 
Page 42  
 
 No. 99/IV/93 of 31 December 1993; and (vi) Decree  Laws Nos. 25/94 and 26/94 of 18 April 1994 on 
fisheries.  Subsidies aimed at promoting invest ment and boosting exports.  He confirmed that no 
programme conferred benefits on the basis of local content requirements.  His Government was in the 
process of reviewing its subsidies to redress any inconsistencies.   
146. Cape Verde's industrial policy focussed on e xport-led growth and development of the 
industrial and private sector.  Apart from fiscal or cu stoms benefits, other incentives provided for in 
Cape Verde's subsidies or investment promoti on regime were for the purchase of land for the 
construction of factories; incentives connected  with technological or industrial innovation, 
professional training of workers and reinvestment; a nd incentives connected with decentralization i.e. 
the movement of industries within the national territo ry of Cape Verde.  As a potential new incentive 
measure, his Government was considering automatic  or simplified registration for industrialists and 
their import operations.    
147. Certain domestic economic sectors and activiti es were supported through incentive programs, 
financial assistance, access to cred it and the supply of equipment.  The fisheries sector was assisted 
through the Fishing Development Fund (FDP) pursuant to Decree Laws No. 25/94 and 26/94.  The 
support provided by the FDP included fiscal and customs exemptions, preferential credits, grants or 
subsidies.  Incentives accorded to  the fisheries sector had amounted to about CVE 90 million during 
1995 to 2001.  Assistance was only provided to Cape Verdean companies, on submission and 
approval of a form and contract with the FDP.     
148. In the tourism sector, the Law No. 21/IV/1991 of 30 December 1991 and the Tourism Utility 
Law No. 55/VI/2005 had revoked the Law No. 42/IV/ 92 of 6 April 1992.  The existing legislation 
provided fiscal benefits to companies and customs duty exemptions for equipment and raw materials 
imported for the establishment or refurbishment of tourist facilities.  The Minister of Finance and 
Planning and the Minister of Economy, Growth and Competitiveness were jointly responsible for 
monitoring the introduction and provis ion of these benefits.  He added that financial institutions also 
benefited from fiscal exemptions.  Investors in th is sector had to apply for authorization from the 
Ministry of Finance and Planning in accordance w ith Foreign Investment Law.  Incentives to the 
transportation industry - maritime, road and air tr ansportation - and the telecommunications sector 
(Law No. 72/95) had also been implemented by Cape Verde.   
149. The Foreign Investment Law No. 89/IV/93 and Regulatory Decree No.1/94 of 3 January 1994 
outlined the authorization procedures and conditions gove rning foreign direct investment.  Pursuant to 
the Industrial Statute (Decree Law No. 108/89), regi stered industrial enterprises could benefit from 
certain incentive schemes, notably a three-year tax exemption on re venues generated.  Subsidies  WT/ACC/SPEC/CPV/5 
 Page 43 
 
 
 granted to industrial activities were not contingent on export performance or local content criteria, but 
their contribution to Cape Verde's econom ic development would be evaluated.  
150. The representative of Cape Verde considered Cape Verde's subsidy programs to be in 
conformity with the provisions of the WTO Agre ement on Subsidies and Countervailing Measures as 
long as Cape Verde benefited from LDC status.  In  the follow-up to an IMF study, Cape Verde 
intended to undertake a further study on its invest ment and industrial policie s.  Reforms could be 
undertaken should the studies recommend the amen dment of existing laws and regulations on 
subsidies.   
151. Some Members urged Cape Verde to provide co mprehensive information on all subsidies and 
incentives provided.  Some investme nt incentives appeared to be contingent upon export performance 
and/or local content.  Some Members recogni zed that Cape Verde was considering seeking 
transitional arrangements for certain measures in the light of its imminent graduation from LDC 
status, and requested Cape Verde to table a compre hensive and specific proposal for consideration by 
the Working Party.   
152. In reply, the representative of Cape Verde re ferred to the Action Plan for the revision of 
incentives to national production and to foreign inv estment circulated in document WT/ACC/CPV/22.  
He noted that the action plan established a work programme until the end of 2007 for the review of 
incentives and the revision of existing legislation.   
153. [The representative of Cape Verde confirmed th at Cape Verde would administer its subsidy 
programmes, including those provided for in (i) the Foreign Investment Law No. 89/1V/93 of 
13 December 1993; (ii) Law No. 92/IV/93 of 15 Dece mber 1993; (iii) The Industrial Statute, Decree 
Law No. 108/89 of 30 December 1989; (iv) the Tourism Utility Law No. 55/VI/2005 of 
10 January 2005; and (v) Law No. 99/IV/93 of 31 December 1993, in full conformity with the WTO Agreement on Subsidies and Countervailing Measu res, including Article 27.2.  All necessary 
information on such programmes would be notified to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the Agreement upon entry into force of 
Cape Verde's Protocol of Accession.  The Working Party took note of these commitments.] 
- Technical barriers to trade, standards and certification 
154. The representative of Cape Verde said that the TBT-related fragmentary and incomplete laws 
and regulations dated back to befo re the independence of Cape Verde in 1975, and that there were at 
present no framework legislation, technical regulati ons, or standards, nor were there any specific 
plans to establish technical regulations or standa rds at this stage.  Consequently, without the WT/ACC/SPEC/CPV/5 
Page 44  
 
 legislative and institutional means, Cape Verde did not apply any technical regulations or standards 
for either domestic or imported goods.  He added that, as safety regulations administered in 
Cape Verde were fragmentary and in complete and due to the lack of  institutional support, there were 
currently no safety regulations enforced as part  of consumer protecti on programs.  Although Law 
No. 88/V/98 of 31 December 1998 approved the lega l regime for consumers' protection and defence, 
the National Consumption Council envisaged in the Law was yet to be regulated and created.   
155. Following the submission of the TBT checklis t (WT/ACC/CPV/6), and in accordance with 
the Action Plans circulated in document WT /ACC/CPV/11 and Revision 1, Cape Verde had 
established an Enquiry Point for TBT matters within  the Trade Policy/WTO Unit of the Ministry of 
Economy, Growth and Competitiveness (Resolution No. 37/2003 of 31 December 2003).  For the 
time being, the contact details of the Enquiry Point were: 
The Office of Minister of Economy Growth and Competitiveness 
P.O. Box No. 15  
Praia 
Republic of Cape Verde 
Tel: + 238 260 76 11/12 
Fax: + 238 261 72 99  
Email: correiafm@yahoo.com or alcidiaa@gov1.gov.cv 
156. He stressed the importance of technical and financial assistance to build Cape Verde's 
capacity on TBT issues and to comply with the prov isions of the TBT Agreement.  Assistance was 
required in several areas, including in setting up a facility for publication of proposals and to receive 
and consider public comment on them, and for assessi ng Cape Verde's needs in the development and 
application of technical regulations in accordance with the provisions of the TBT Agreement.   
157. The representative of Cape Verde confirmed that his Government would comply with the 
transparency and other general requirements of the TBT Agreement as part of its accession process.   
158. Having reviewed Cape Verde's revised Action Plan, some Members noted that, at present, 
Cape Verde did not appear to apply any technical requirements either to imports or to domestically 
produced goods.  They also noted Cape Verde’s est ablishment of an enquiry point, and intent to 
provide for prior publication for public comment of draft technical regulations, standards, and 
conformity assessment requirements as soon as possible based on technical assistance.  They stated 
that even in the absence of additional legislati on to govern the development and application of 
standards, technical regulations and confor mity assessment procedures, in developing new 
requirements, Cape Verde should not create unnecessary obstacles to trade and should apply 
principles of national treatment, MFN treatment, a nd transparency.  They sought a commitment from  WT/ACC/SPEC/CPV/5 
 Page 45 
 
 
 Cape Verde that in developing its regime con cerning the application of standards, technical 
regulations, and conformity assessment procedures, it would do so in conform ity with the provisions 
of the WTO Agreement on Technical Barriers to Tr ade and other relevant WTO Agreements.  Noting 
Cape Verde's requests for technical assistance, so me Members stressed that Cape Verde should not 
make implementation of the TBT Agreement contingent on the provision of future technical 
assistance.   
159. The representative of Cape Verde confirmed that his Government intended to obtain and 
utilize technical assistance that would allow it to eventually implement all aspects of the WTO 
Agreement on Technical Barriers to Trade.  Prior to that time, Cape Verde would ensure that any new, 
or changes to, laws, regulations and practice would no t result in unnecessary obstacles to trade.  From 
the date of accession, its Enquiry Point would be  operational and Cape Verde would designate a 
central government authority responsible for the implementation of notification procedures under the 
Agreement and an authority responsible for ove rall monitoring of compliance with its TBT 
obligations.  Any standards, t echnical regulations, and conformity assessment procedures adopted 
would be developed and a pplied in conformity with the provisions of the Agreement, including 
publication prior to implementation to allow inte rested parties the opportunity for review and 
comment as provided for in the Agreement.  Ex isting or new measures would be applied on a non-
discriminatory basis, i.e. providing for national tr eatment and MFN treatment to all imports.  Cape 
Verde also would monitor the work of the Committee on Technical Barriers to Trade.  He added that 
Cape Verde would seek out all available technical assi stance to ensure that its capacity to eventually 
implement the Agreement is assured.  The Working Party took note of these commitments. 
- Sanitary and phytosanitary measures  
160. The representative of Cape Verde said that  existing sanitary and phytosanitary (SPS) 
measures were applied and regulated on the basis of Decrees Nos. 62/89 and 63/89 of 
14 September 1989, Decree-Law No. 89/92 of 16 July 1992, Legislative-Decree No. 9/97 of 
8 May 1997, Decree-Law No. 26/97 of 19 May 1997, Regulatory Decree No. 15/97 of 
3 November 1997, and Ministerial Ordinance No. 55/97 of 9 September 1997.  Resolution No. 57/97 
of 29 December 1997, Decree-law No. 74/97 and Decree-law No. 75/97 of 29 December 1997 had 
been revoked by Decree Law No. 8/2002 of 25 February 2002.  In the context of establishing a WTO-
consistent regime in this area, his Governme nt intended to introduce new science-based legal 
requirements on food safety, animal and plant health replacing existing decrees by [1 January 2007].   
161. Cape Verde was a member of the WHO Codex Alimentarius Commission and the 
International Plant Protection Convention (IPPC).  Cape Verde adopted and applied Codex and IPPC WT/ACC/SPEC/CPV/5 
Page 46  
 
 standards.  He believed these sta ndards provided an acceptable level of  protection in Cape Verde.  
Cape Verde was in the process of adopting standa rds and becoming a member of the International 
Office of Epizootics (OIE).   
162. Cape Verde was also in the process of crea ting an enforcement body for the oversight of 
quarantine and SPS measures.  A regulatory agency  for food and pharmaceuticals (ARFA – Agência 
Reguladora de Produtos Farmacêutic os e Alimentares) was being cr eated to regulate the food and 
drugs sector.  An enquiry point for SPS measures in Cape Verde was in the process of being 
established in the Ministry of the Environment, Ag riculture and Fisheries.  This process would be 
completed by 1 January 2006.  For the time being, the contact details of the Enquiry Point on SPS 
issues would be as follows:   
The Office of Minister of Economy, Growth and Competitiveness 
P.O. Box No. 15 Praia 
Republic of Cape Verde 
Tel:  + 238 260 76 11/12 
Fax:  + 238 261 72 99 
Email: correiafm@yahoo.com or alcidiaa@gov1.gov.cv 
163. The representative of Cape Verde noted  that, as outlined in the SPS checklist 
(WT/ACC/CPV/6) submitted by Cape Verde, furthe r work needed to be undertaken to ensure 
compliance with the SPS Agreement.  In particular , additional efforts were needed to meet the 
transparency obligations of the SPS Agreement; draft legal instruments in line with Articles 2.2, 3.3 
and 5.2 of the SPS Agreement, establishing animal and plant health, and food safety regulations to be 
based on scientific evidence; and to draft legislation on the equivalence provisions of the SPS Agreement.  Provisions of the SPS Agreement rela ting to non-discriminati on, regional conditions, 
control, inspection and approval procedures also need ed to be met.  Cape Verde intended to adopt 
international standards except in those instan ces which may require SPS measures specific to the 
needs of Cape Verde.   In light of the legal, infr astructural, financial and technical constraints faced by 
Cape Verde, and as indicated in WT/ACC/CPV/10 a nd Rev.1, he stated that Cape Verde would 
provide a detailed programme of gradual implementation of the pr ovisions of the WTO Agreement, 
starting with the development of a WTO-consistent  legal basis for the application of SPS measures 
and including the creation of appropriate instituti ons and facilities for transparency, risk assessment, 
and the determination of equivalen ce, and to train the officials necessary to manage the system.   
164. The representative of Cape Verde requested that  the Working Party grant a transitional period 
from the date of its accession until 1 January 20 10 for implementation of the WTO Agreement on  WT/ACC/SPEC/CPV/5 
 Page 47 
 
 
 Sanitary and Phytosanitary Measure s to allow Cape Verde to obtain and utilize technical assistance to 
fully implement the obligations of the Agreement.   During this period, existing measures would be 
applied on a non-discriminatory basis, i.e., providing  for national treatment and MFN treatment to all 
imports.  Measures in place already consistent with  the provisions of the Agreement on Sanitary and 
Phytosanitary Measures would not be subject to tr ansitions, and Cape Verde would ensure that any 
changes made in its laws, regulations and practi ce during the transition period would not result in a 
lesser degree of consistency with the provisions of the Agreement than existed on the date of 
accession.  If necessary, technical regulations and ot her measures adopted during this period would be 
developed in conformity with the provisions of the Agreement, otherwise accepted international 
standards would be adopted.  Priority would be gi ven to the establishment of a functioning enquiry 
point and the notification of all of Cape Verd e’s SPS measures to the Committee on Sanitary and 
Phytosanitary Measures.  He stressed the importanc e of technical assistance to be provided during the 
period of transition, including under Article 9 of  the SPS Agreement, and added that Cape Verde 
would seek out all available technical assistance to ensure that its capacity to implement the SPS 
Agreement upon expiration of the tr ansition period was assured.  Cape  Verde would fully participate 
in the work of the Committee on Sanitary and Phyt osanitary Measures.  He drew the attention of 
Members to the Action Plan in Table 9, setting out de tails of the steps that still remained to be taken 
in order to achieve this objective and a timetable for each step.   
Table 9: Action Plan for implementation of the SPS Agreement  
 
Action Deadline 
Revision of Regulation of Decree Law 63/89 of 14 September 1989 to 
provide framework for WTO consiste nt SPS regime for livestock and 
revocation of all contrary legislation Done 
Identification of the authority responsible for notifications and 
publications required by the SPS Agreement and establishment and 
operation of a single contact point for information No later than  1 January 2006 
Establishment of publication or other facility for prior publication for 
public review, including method of utilizing public comments. No later than 1 January 2006 
Development and enactment of basic legislation for SPS regime:  
 
- Drafting and enactment of new Laws related to Food Safety, 
Plant Health and Animal health 
- Establishment of Regulations and updating existing laws   
 
No later than 1 January 2007; 
 No later than 1 January 2008 
Submission of notifications required by the Agreement to the Committee 
on SPS  No later than 1 January 2008 
Acquisition of laboratory equipment and upgrading of laboratory 
infrastructure, international accred itation of lab with  international 
standards related to the different re quirements includ ed tenders etc. No later than 1 January 2010 
Upgrading and strengthening of quality control, quarantine system and 
proper border inspection posts, functional Food Authority related to the 
three areas including proper staffing  and training and full compliance 
and implementation of the WTO Agreement on Sanitary and 
Phytosanitary measures No later than 1 January 2010 WT/ACC/SPEC/CPV/5 
Page 48  
 
 Action Deadline 
Training of staff on SPS implementation No later than 1 January 2010 
Full implementation of the WTO Agreement on the Application of 
Sanitary and Phytosanitary Measures No later than 1 January 2010 
 
165. The representative of Cape Verde confirmed that Cape Verde would implement progressively 
the provisions of the WTO Agreement on the Appli cation of Sanitary and Phytosanitary Measures 
within the timetable provided for in Table 9, and would ensure full implementation of the Agreement 
no later than 1 January 2010, and with the unders tanding that during this period the scope of 
implementation of other aspects of the Agreement, as described in paragraph [164] would be applied 
by Cape Verde.   He further confirmed that Cape Verd e should consult with WTO Members upon 
request if they deemed that any measures applied during the transition period affected their trade 
negatively.  The Working Party took note of these commitments.   
- Trade-related investment measures 
166. The representative of Cape Verde stated that Cape Verde did not apply any measure that 
could be construed as a prohibite d trade-related investment measu re under the WTO Agreement on 
Trade-Related Investment Measures (TRIMs Agreement).   
167. [The representative of Cape Verde confirme d that Cape Verde would not maintain any 
measures inconsistent with the TRIMs Agreemen t and would apply the TRIMs Agreement from the 
date of accession without recourse to any transitiona l period.  The Working Party took note of this 
commitment.]   
- Free zones, special economic areas 
168. The representative of Cape Verde said that  Decree Law No. 18/2000 of 27 March 2000, Law 
No. 83/V/98 of 21 December 1998, and Decree Law No. 48/99 of 2 August 1999 authorized the 
establishment of a Commercial Franc (Free) Zone, which was defined as a duty free import and export 
area where permanent trade fairs could be held.  Ho wever, Cape Verde's Commercial Franc Zone was 
not yet fully operational, and had so far only hosted occasional trade fairs. 
169. Cape Verde had also designated "free enterp rises" or "franc enterprises" benefiting from 
special fiscal and customs incentives under Law No . 99/IV/93 of 31 December 1993 and pursuant to 
Decree Law No. 36/2003 of 29 September 2003; Re gulatory Decree No. 6/99 of 21 June 1999; Law 
No. 50/III/89 of 13 July 1989; Legislative Decree  No. 19/97 of 22 December 1997; Resolution 
No. 43/93 of 31 August 1993; and Resolution No. 3/2004 of 23 February 2004.  The Industrial Zone of Lazareto had been created especially for the se tting up of free enterprises.  Free enterprises could 
also be established elsewhere in Cape Verde, a nd would continue to benefit from the earmarked  WT/ACC/SPEC/CPV/5 
 Page 49 
 
 
 incentives provided for under the Law.  Any legall y established national or foreign enterprise was 
eligible for the status of free enterprise, as the La w stated that "all enterprises, producing or trading 
goods and services, solely for export or sale to othe r free enterprises installed in Cape Verde, can 
apply for the free enterprise status."  In order to be designated and registered as a free enterprise, the 
entity applied to the Ministry of  Finance, Planning and Regiona l Development through CAPEVERDE 
Investments.  Upon approval, CAPEVERDE Investme nts issued a certificate of free enterprise in 
accordance with the provisions of Annex 2 of the La w No. 99/IV/93.  Five enterprises operating in the 
garment and footwear industries had been established as "free enterprises".   
170. The fiscal incentives for "free en terprises" included total exemption from taxes on profits and 
dividends distributed for ten years.  After ten years, these taxes were not to exceed 15 per cent of the profits.  Free enterprises were also exempt from indi rect taxes and other levies such as the stamp tax 
or notary and registration fees.  Free enterprises di d not have to declare capital gains.  Customs 
incentives included the exemption of all border tax es, custom duties, and charges on the imported 
goods used directly by the free en terprises such as construction materials, including metal structures, 
for the installation, expansion or renovation of the free enterp rises; machinery, apparatuses and 
instruments, including accessories and spare parts; cargo handling equipment and means of transport 
of goods for the exclusive use of  the free enterprises; fuels and lubricants (with the exception of 
petrol), used strictly for electricity generation and energy needs of the free enterprises and for the 
desalination of water.  Raw materials and interm ediate products used in goods exported by a free 
enterprise could be imported through a suspension of  the customs regime.  Under this regime, the 
inputs were subject to a simplified declaration, cleared immediately by Cu stoms, the payment of 
duties and fees was suspended, and the products impor ted could be stored, circulated or transformed 
within the customs territory under the supervisi on of Customs.  Exported products manufactured or 
re-exported by free enterprises were exempt from custom s duties.  Free enterprises could also contract 
foreign workers.   
171. In response to a query, the representative of Ca pe Verde confirmed that the Ministry of 
Finance and Planning could authorize free enterprise s to sell up to 15 per cent of the preceding year's 
production in the local market.  Goods destined for the local market were s ubject to the applicable 
duties, taxes and other charges.   
172. A Member urged Cape Verde to review and re vise its policies related to free zones and free 
enterprises, and questioned whether the criteria fo r free enterprises were consistent with the WTO 
Agreement on Subsidies and Countervailing Measu res.  Cape Verde was invited to provide 
comprehensive information on all in centives related to free zones, speci al economic areas, and "franc" WT/ACC/SPEC/CPV/5 
Page 50  
 
 or "free" enterprises.  Members would welcome Cape Verde's commitment to eliminate prohibited 
subsidies by a date certain.   
173. In reply, the representative of Cape Verde said th at, applied by an LDC, the criteria would in 
his view be in compliance with the provisions  of the Agreement on S ubsidies and Countervailing 
Measures.  Nevertheless, as Cape Verde's LDC status was set to expire, his Government was 
committed to prepare a plan for the gradual elimin ation of prohibited subsidies.  Referring to the 
action plan circulated in document WT/ACC/CPV/22 , he stated that Cape Verde would review all 
incentive programmes, and incentives found incons istent with WTO requirements would be 
eliminated or brought into conformity with the Ag reement on Subsidies and Countervailing Measures.   
- Government procurement 
174. The representative of Cape Verde said that the Directorate General for State Property solicited 
bids and oversaw the purchase of goods and services for all government  departments.  Public works 
were regulated through Decree Law No. 87/89 of 24 November 1989.  Contracts for construction 
works with foreign financing were not required to co mply with this legislation.  Tendering procedures 
were regulated by Decree-Law No. 31/94 of 2 Ma y 1994.  Generally, construction contracts were 
awarded after a public bidding process had taken pl ace.  The contract was awarded to the most 
advantageous proposal taking several factors into account, including the price, timetable for execution 
of the project, technical specifications, and other f actors of special interest to the public.  He 
confirmed that his Government did not give pref erence to local goods and services in its government 
procurement practices.   
175. Cape Verde followed World Bank guidelines in th e adjudication of government procurement, 
and contracts were concluded on the basis of inte rnational tendering, nati onal tenders, requests for 
quotations, or international consulta tion.  National tenders applied to products available in the local 
market.  Mandatory publication applied to all procurement exceeding CVE 100,000 (€ 907); for 
smaller projects the General Directorate of Patrim ony would invite bids from three local suppliers.  
An evaluation committee had been established to examine the claims of unsuccessful bidders.  Still dissatisfied, the bidder could bring the matter before the Minister of the Ministry concerned, and subsequently file an appeal with the Court.   
176. A Member invited Cape Verde to particip ate in the WTO Agreement on Government 
Procurement as an observer as a prelude to future participation as a Member to this Agreement.  
Noting that participation in this Agreement w as optional for WTO Members, the representative of 
Cape Verde said that his Government would cons ider the issue and expl ore the advantages and 
disadvantages of joining the Agreem ent on Government Procurement.  WT/ACC/SPEC/CPV/5 
 Page 51 
 
 
 - Transit 
177. The representative of Cape Verde said that Chapter VIII (Articles 215-220) of the new 
Customs Code [, to be adopted by July 2005,] incl uded provisions on the regulation of trade in transit 
that, in his view, were in conformity with Article  V of the GATT 1994.  Cape Verde was a member of 
the World Customs Organization (WCO) and was consulting and seeking technical assistance from 
the WCO on the regulation of trade in transit. 
178. As an ECOWAS Member, Cape Verde was a si gnatory to the Convention relating to Road 
Transit of merchandise between ECOWAS Member  States of 29 May 1982, and the Additional 
Convention A/SP.1/5/90 of 30 May 1990 that instituted a m echanism within the ECOWAS 
Community to guarantee the inter-State road transit of merchandise.   
179. The representative of Cape Verde confirmed th at his Government would apply any laws, 
regulations and practices governing transit operations and would act in full conformity with the 
provisions of the WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this commitment.   
- Agricultural policies (a) Imports   
180. The representative of Cape Verde said that the government Department responsible for 
Agriculture, Forestry and Livestock could impose quantitative restrictions or prohibitions on the 
import of vegetables, livestock and other products on the grounds of  health and public safety.  SPS 
measures were applied, and food imports needed to meet "Codex" standards.  Imported agricultural or 
animal products were accompanied by a certificate of  origin.  Imports of animals, food of animal 
origin, plants, vegetables or products of vegeta ble origin were accompanied by an international 
sanitary or phytosanitary certificate issued by the authorities of the exporting country.  Based on an inspection, the Cape Verdean aut horities issued a certificate to indicate that the products did not 
constitute a risk to Cape Verde.  Imported food pr oducts should be labelled to indicate the date of 
manufacture and the estimated shelf-life, composition, trademark and the manufacturer's name.  The use-by-dates stated by the manufacturers were not  based on mandatory shelf-life requirements for 
particular products.   
181. A Member reminded Cape Verde that quantitativ e restrictions were not permitted under the 
Agreement on Agriculture, and that Cape Verde woul d need to conduct a risk assessment to justify 
import prohibitions.   WT/ACC/SPEC/CPV/5 
Page 52  
 
 (b) Exports 
182. The representative of Cape Verde said that Ca pe Verde prohibited the export of endangered 
flora or fauna covered by the International C onvention on Endangered Species of Flora and Fauna 
(Washington Convention).  His Government did not provide any credits, credit guarantees or insurance programs for agricultural exports. 
(c) Internal policies   
183. The representative of Cape Verde said that the agricultural sector played an important role in 
the national economy, contributing about 11 per cent of the GNP and employing nearly 20 per cent of the labour force in 2000.  The import of some agricultural inputs was exempt from customs duties and taxes to support domestic producers.  Tariff exempti ons were available for breeding livestock, seeds 
and plants for agriculture, fertilizers and pesticides.   
184. The representative of Cape Verde provided in formation on domestic  support and export 
subsidies in the agricultural sector for the y ears 1998, 1999, 2001, 20 02 and 2003 (see documents 
WT/ACC/SPEC/CPV/1 and Rev.1).  He identified "Green Box" support as expenditure on research, 
information dissemination through extension and a dvisory services, support to the development of 
agriculture and livestock, and infrastructural ser vices serving both environmental and agricultural 
purposes in view of the limited water resources in Cape Verde.  Funding was also provided for the 
development of agriculture and livestock; reforesta tion; an annual survey on agriculture production; 
and the payment of salaries for forest rangers and similar personnel.  Salaries and wages accounted for 
a significant proportion of Cape Verde's expenditure  on domestic support.  Government expenditure 
for the support and development of agriculture in Cape Verde amounted to about CVE 560 million 
(€ 5 million) annually.   
185. The representative of Cape Verde confirmed that Cape Verde did not provi de any agricultural 
export subsidies. 
186. [Cape Verde's commitments on agricultural tari ffs and domestic support and export subsidies 
for agricultural products are contained in the Sc hedule of Concessions a nd Commitments on Goods 
(WT/ACC/CPV/[...]/Add.1) annexe d to Cape Verde's draft Protocol of Accession to the WTO.] 
- Trade in civil aircraft 
187. The representative of Cape Verde said that domestic companies benefited from tariff 
exemptions for imported aircraft and spare parts.     WT/ACC/SPEC/CPV/5 
 Page 53 
 
 
 - Textiles regime  
188. The representative of Cape Verde said that trad e in textiles was of growing importance and 
had accounted for almost 50 per cent of total exports in 2001.  Investment in the textile and clothing 
industry had totalled US$ 5.06 million over the peri od 2000 to 2004.  From 2000 through to the first 
half of 2005, Cape Verde's textile and cl othing industry had traded goods worth nearly 
CVE 3.4 billion (€ 30.5 million).  Cape Verde ha d been certified for apparel benefits under the 
African Growth and Opportunities Act (AGOA), which gave Cape Verde's textile exports preferential 
access in the United States.  Cape Verde also had preferential (quota and duty-free) access to other 
markets such as Canada and the European Union.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL - Industrial property protection 189. The representative of Cape Verde said that hi s Government attached importance to the 
development of an industrial property protection sy stem.  New legislation was being promulgated by 
Cape Verde in this area as the existing legal provi sions, i.e. Decree No. 30679 of 24 August 1940 (of 
Portugal), which had been enacted in Cape Verde as  the Industrial Property Code of 1959 (Ministerial 
Ordinance No. 17043 of 14 May 1959), were obsolet e and had not been applied since Cape Verde's 
independence in 1975.  A new Industrial Property Code, modelled on the Industrial Property Law 
promulgated by Portugal in 2003 and on international developments, wa s scheduled to be adopted by 
the National Assembly in [December 2005].  He expect ed the new Code to be in full conformity with 
the provisions of the WTO Agreement on Trade- Related Aspects of Intellectual Property Rights 
(TRIPS). 
190. The representative of Cape Verde submitted information on the implementation of the TRIPS 
Agreement in document WT/ACC/CPV/5, and Ac tion Plans in documents WT/ACC/CPV/9 and 
Rev.1.  As per the Action Plan, Cape Verde would seek to implement and be in full conformity with 
the provisions of the TRIPS Agreement by December  2006.  The timetable for implementation of the 
TRIPS Agreement was dependant on the provision of timely and adequate technical assistance.  
Assistance had been, and would be further solicite d from relevant sources, including bilateral donors 
and the World Intellectual Property Organization. 
191. In response to a query on the Action Plan, he stated that notwithstanding the transition period 
and technical assistance requested for the implemen tation of the TRIPS Agreement, his Government 
would (i) apply Articles 3, 4 and 5 of the TRIPS Agreement during any transition period granted; WT/ACC/SPEC/CPV/5 
Page 54  
 
 (ii) Cape Verde's intellectual property rights regime  would not result in a lesser degree of enforcement 
during any transition period granted; and (iii) ex isting rates of infringement would not significantly 
increase, and infringements of intellectual property in  this period would be addressed immediately by 
Cape Verde. 
- Responsible agencies for policy formulation and implementation 
192. The representative of Cape Verde stated th at the Ministry of Economy, Growth and 
Competitiveness was the focal point for the protection of industrial property.  The Ministry was 
responsible for formulating and implementing policies in this area, whereas the government 
Department responsible for Industry and Energy  was charged with follow-up and administrative 
procedures.  He added that the Ministry of Culture  was the focal point for copyright and related rights 
in Cape Verde.  In 2001, Cape Verde had created  the National Institute for Research, Promotion and 
Cultural Heritage (under the Ministry of Cultu re) which was responsible for compliance with 
legislation pertaining to copyright and related rights.   
- Participation in international intellectual property agreements 
193. The representative of Cape Verde said that Ca pe Verde had been a member of the World 
Intellectual Property Organization (WIPO) since 1 Ju ly 1997, and participated regularly in WIPO 
activities, particularly regional seminars for Port uguese-speaking countries.  Cape Verde was also a 
member of the African Industrial Property Organization (AIPO). 
194. Cape Verde intended to accede to the Paris Convention for the Protection of Industrial 
Property and would be subm itting its accession request shortly.  With  respect to copyright and related 
rights, Cape Verde had acceded to the Berne Conve ntion for the Protection of Literary and Artistic 
Works in June 1996 and had become a member of  the International Convention for the Protection 
Performers, Producers of Phonograms, and Broa dcasting Organizations (Rome Convention) in 
June 1996.  Strongly encouraged to accede to th e WIPO Copyright Treaty, the WIPO Performances 
and Phonograms Treaty and the Geneva Phonograms C onvention, he indicated that his Government 
would consider these matters further.  His Governme nt would also take a position on accession to the 
International Union for the Protection of Plant Varieties (UPOV), the Budapest Treaty on the 
International Recognition of the Deposit of Micro-or ganisms for the Purposes of Patent Procedure, 
and the Patent Cooperation Treaty, at a later stage.   
195. Cape Verde had developed a cooperation relati onship with Portugal's National Institute of 
Industrial Property for training and technical assistance activities.    WT/ACC/SPEC/CPV/5 
 Page 55 
 
 
 - Application of national and MF N treatment to foreign nationals 
196. The representative of Cape Verde said that the 1959 Industrial Property Code provided for 
equal treatment to all persons, inde pendent of place of residence.  The reciprocity regime applied for 
foreign nationals.  New legislati on on Industrial Property Protecti on foresaw equal rights for all 
beneficiaries, whether national citizens or foreigners .  This principle would also be adhered to in 
Cape Verde's accession to the Paris Convention.   
197. With respect to copyright and related right s, Cape Verde legislation neither permitted 
discriminatory treatment on the basis of the copyri ght holder's nationality, nor did it permit special 
treatment to the citizens of any particular country. 
- Fees and taxes 
198. The representative of Cape Verde said that mi nimal fees and charges set in the outdated 1959 
Industrial Property Code remained in effect for industrial property protection.  His Government 
intended to revise these fees in the new draft Industrial Property Code (Title IV – "Fees").  At present, 
Cape Verde applied no fees or taxes for copyright and related rights.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AND MAINTENA NCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 
199. The representative of Cape Verde said that the existing Copyright Law had been enacted in 
Decree No. 107/90 of 8 December 1990.  Cape Verde had subsequently acceded to the Berne 
Convention in June 1996.  
200. Some Members requested detailed information on the Copyright Law of Cape Verde, and in 
particular its conformity with Articles 9, 10, 11, 13  and 14.2 of the TRIPS Agreement.  In response, 
the representative of Cape Verde indicated that some provisions of the Copyright Law might be 
inconsistent with provisions of the TRIPS Agre ement.  The Action Plan submitted in document 
WT/ACC/CPV/9 and Rev.1 envisaged review and, as necessary, amendment or revision of the 
Copyright Law by [July 2005] to bring it in conformity with the TRIPS Agreement.  The proposed 
timetable for completion of work, as outlined in Ca pe Verde's Action Plan, depended on the provision 
of timely and adequate technical assistance.  He added that specific elements to be reviewed, and as necessary amended, in the process of revising the C opyright Law included the definition of computer 
programs; rental rights for computer programs and cinematography works; the length and terms of WT/ACC/SPEC/CPV/5 
Page 56  
 
 protection for performers/performances; copyright pr otection for folklore/traditional culture (a WIPO 
model law was being examined); and other aspects or provisions identified by Members as not in 
compliance with the TRIPS Agreement.  
201. The representative of Cape Verde confirmed th at in line with Article 10.1 of the TRIPS 
Agreement, computer programs were protected as litera ry works.  He also confirmed that the [draft] 
revised Copyright Law would ensure a life-plus-50- years term of protection for literary works in 
compliance with Article 9.1 of the TRIPS Agreemen t and the Berne Convention.  The Copyright Law 
currently allowed "an artist's interpretation or execu tion" to be protected for a period of 40 years, 
starting from the first day of the year in which th e copyrighted work was generated.  Responding to 
concerns that Article 50(h) of the draft revised draft Copyright Law did not require the reproduced work to be lawfully obtained by the person perform ing the reproduction, he stated that reproduction of 
a work obtained unlawfully would be considered a "crime of reception" according to Article 230 of 
the Penal Code.   
- Trademarks, including service marks 
202. The representative of Cape Verde said that th e 1959 Industrial Property Code (Chapter III, 
section II, Articles 86 and 103) provided for the registra tion and protection of marks.  Applications to 
register a mark were lodged with the Department responsible for Industry.  After the application had 
been submitted, a notice to this effect was publishe d in the Industrial Property Bulletin.  The deadline 
to present complaints or objections was 90 days, af ter which the Department responsible for Industry 
would examine and process the application by comparing the mark submitted for registration against 
already-registered marks.  
203. Members sought a description of the protectable subject matter for trademark protection in 
Cape Verde.  Further information on the length and terms of protection, procedures for the registration 
and protection of trademarks, including well-know n marks, and the rights that the owner could 
exercise was requested.  Clarification on the ar bitration mechanism and penalties for misuse and 
infringement of trademarks was also sought. 
204. In response, the representative of Cape Verd e indicated that the 1959 Industrial Property 
Code was obsolete and that Cape Verde would a dopt a new Industrial Property Code in conformity 
with the TRIPS Agreement by [December 2005].   WT/ACC/SPEC/CPV/5 
 Page 57 
 
 
 - Geographical indications, including appellations of origin 
205. The representative of Cape Verde said that Geographical Indications were not covered by the 
1959 Industrial Property Code.  The new Industrial Pr operty Code [expected to be promulgated by 
December 2005] would cover this subject in  conformity with the TRIPS Agreement. 
206. Having reviewed the new draft law, a Member requested a specific explanation of how 
Cape Verde would preserve the rights of trademark owners in compliance with Articles 16.1 and 24.5 
of the TRIPS Agreement by ensuring the protection of trademarks against confusingly similar and 
later-in-time geographical indications.   
- Industrial designs 
207. The representative of Cape Verde said that the 1959 Industrial Property Code (Chapter II, 
Sections I-IV) provided for the registration and protec tion of industrial designs.  After an application 
had been submitted, a notice indicating the objective,  utility and novelty of the industrial design was 
published in the Industrial Property Bulletin.  The deadline to present complaints or objections was 
90 days, after which the request would be processed.  
208. Some Members sought further information on th e procedures for the protection of industrial 
designs, and for the protection of textile designs.  In  reply, the representative of Cape Verde indicated 
that the 1959 Industrial Property Code was obsol ete and that Cape Verde would adopt a new 
Industrial Property Code in conf ormity with the relevant provisions of the TRIPS Agreement by 
[December 2005].   
- Patents 
209. The representative of Cape Verde said that the 1959 Industrial Property Code (Chapter I, 
Sections II-IV) provided for the registration of pate nts.  A request for a patent was made in an 
application with the supporting materials as indicated  in Article 15 of the Industrial Property Code.  
Upon the request of the inventor or his/her legal representative, a "certificate of presentation of the 
patent request" was issued.  After the application ha d been submitted, a notice with a transcript of the 
patent claim was published in the Industrial Property Bulletin.  The deadline to present objections or 
complaints was 90 days, after which the Departme nt responsible for Industry would examine and 
process the request.  
210. Some Members requested further information on th e existing patent legislation in Cape Verde 
and in particular its conformity with Articles 27,  28, 29 and 32 of the TRIPS Agreement.  Further 
information was also sought on the rights provided to patent holders, the term of protection, and WT/ACC/SPEC/CPV/5 
Page 58  
 
 whether any provisions for extension of the term of  protection of patents existed in Cape Verde.  
Details of provisions and description of conditions (i f any) which might permit the use of the patent 
subject matter without the authorization of the patent holder was solicited.   
211. In reply, the representative of Cape Verde st ated that the 1959 Industrial Property Code was 
obsolete.  Cape Verde would adopt a new Industrial Property Code in conformity with the provisions 
of the TRIPS Agreement by [December 2005].   
- Plant variety protection 
212. The representative of Cape Verde said that pl ant variety protection was not covered by the 
1959 Industrial Property Code.  Cape Verde woul d adopt a new Industrial Property Code which 
would include plant variety protection in conform ity with the provisions of the TRIPS Agreement by 
[December 2005]. 
- Layout designs of integrated circuits 
213. The representative of Cape Verde said that layout  designs of integrated circuits were not 
covered by the 1959 Industrial Property Code.  Ca pe Verde would adopt a new Industrial Property 
Code which would include provisions in conformity  with Articles 35 to 38 of the TRIPS Agreement 
by [December 2005]. 
- Requirements on undisclosed information,  including trade secrets and test data 
214. The representative of Cape Verde said that tr ade secrets and test data were accorded 
protection through the Penal Code.   
215. Some Members sought further information on the protection of undisclosed information in 
conformity with Article 39 of the TRIPS Agreemen t, including the citation of the specific provisions 
in the Penal Code relating to trade secrets or test data.  Information was also sought on procedures and 
protection accorded to test data for pharmaceutical  and agricultural chemical products submitted for 
marketing approval.   
216. In reply, the representative of Cape Verde said that the existing Penal Code was old and was 
in the process of being revised.  Cape Verde w ould adopt a new Industrial Property Code which 
would include protection of undisclosed information in conformity with the provisions of the TRIPS 
Agreement by [December 2005].   
217. Having reviewed the draft Industrial Property Code, a Member noted that the draft law 
appeared to protect trade secrets against disclosur e, but it did not provide specific protection for  WT/ACC/SPEC/CPV/5 
 Page 59 
 
 
 pharmaceutical and agricultural test data against unfair commercial use as required under Article 39.3 
of the TRIPS Agreement.  In this context, the representative of Cape Verde was asked to explain 
whether Cape Verde permitted the registration of generic products; wh ether the applicant for a generic 
drug approval needed to provide the same data requi red for an original product, or could provide an 
abbreviated drug application; and whether Ca pe Verde had established any time period after 
registration of an original product during which ge neric applications would not be considered.   
218. The representative of Cape Verde replied that  the new Industrial Property Code did not 
foresee the registration of generic products.   
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS 
219. The representative of Cape Verde said that th e existing measures to control the abuse of 
industrial property rights were outlined in T itle III of the 1959 Industrial Property Code.   
- ENFORCEMENT 
- Civil judicial procedures and remedies 
220. The representative of Cape Verde said that civil judicial procedures and remedies were 
applied in accordance with the Civil Process Code.  Under the Copyright Law, civil procedures 
arising from infringements were independent of criminal procedures.  One case on a presumed 
copyright infringement was currently before th e courts, but no definitive judgment had yet been 
passed.  No civil cases had so far been br ought concerning trademark infringements. 
221. Some Members sought further information on laws, regulations and any conditions under 
which the right holder could avail of civil judicial procedures and remedies.  Further clarification was 
solicited on Cape Verde's conformity  with Article 43.1 of the TRIPS Agreement.  In response, the 
representative of Cape Verde indicated that Cape Verde would adopt a new Industrial Property Code 
in conformity with the provisions of th e TRIPS Agreement by [December 2005].   
222. Referring to Article 45.2 of the TRIPS Agreemen t, the representative of Cape Verde said that 
according to Articles 9 and 10 of the Civil Code and Cape Verde's laws of judicial procedure a right 
holder could be awarded the costs and/or attorney's fees at the successful conclusion of a case for copyright or intellectual property rights infringement.  Asked how fines or damages were calculated in 
civil trademark and copyright cases, he said that the draft law established minimum and maximum 
levels depending on the seriousness of the case.   WT/ACC/SPEC/CPV/5 
Page 60  
 
 - Provisional measures 
223. The representative of Cape Verde said that  in accordance with Cape Verde's current 
procedural law, provisional or precautionary measures could be issued inaudita altera parte  or 
without prior notice to the defendant.  Provisions in line with Article 50 of the TRIPS Agreement 
would be included in the new law being drafted.   
- Administrative procedures and remedies 
224. The representative of Cape Verde said that administrative procedures and remedies had not 
been applied in Cape Verde due to the obsolete and non-functional nature of the existing Industrial 
Property Code, and that this matter would be rectifie d with the drafting and adoption of a new Code.    
- Special border measures 
225. The representative of Cape Verde said that the 1 959 Industrial Property Code did not include 
any special border measures to prevent the entry of counterfeit or other products violating the 
principles of industrial property protection.  Cape  Verde would adopt a new Industrial Property Law 
by [December 2005] to ensure conformity with the provisions of Section 4 of the TRIPS Agreement, 
including Article 51, on border enforcement of inte llectual property rights.  He  added that training and 
counselling of the customs service would be necessary in this area.   
226. Some Members sought further informati on on border enforcement for trademark 
counterfeiting and copyright piracy.  Indications wh en border protection would be available to other 
forms of intellectual property were also solicited.   Clarification was sought on whether competent 
authorities could take ex officio action in lin e with Article 58 of the TRIPS Agreement.  
227. In response, the representative of Cape Verd e said that Customs Officials could take 
ex officio action under current customs operating procedures to prevent the importation of goods that infringed intellectual property rights.  Cape Verd e Customs could seize such goods and the case could 
be brought before the courts.   
- Criminal procedures 
228. The representative of Cape Verde said that th e illicit or unauthorized appropriation, use or 
diffusion of industrial property or trade secrets wa s a criminal offence punishable under the terms of 
the 1959 Industrial Property Code.  Article 213 of th e 1959 Industrial Property Code stipulated that 
"any act of unfair competition shall be penalized by  a fine of CVE 100 (€ 0.90) to CVE 10,000 (€ 90) 
under current legislation, which may be supplemented by a prison term of 15 days to six months."   WT/ACC/SPEC/CPV/5 
 Page 61 
 
 
 He acknowledged that the present penalties in the I ndustrial Property Code did not constitute an 
effective deterrent.  No criminal judicial procedur es had been initiated in Cape Verde so far as the 
application of penalties was not effective and w ould not discourage illicit practices in the domain of 
industrial property rights.  Cape Verde woul d adopt a new Industrial Property Code by 
[December 2005] which would review and revise the criminal procedures and penalties in conformity 
with the TRIPS Agreement.   
229. For copyright and related rights, the existi ng Copyright Law allowed for the imposition of 
penalties against anyone importing, selling or distribu ting to the public any pirated work, whether the 
product was produced in Cape Verde or abroad.  Copy right violations were punishable by a fine of up 
to CVE 100,000 (€ 900).  The Copyright Law foresa w penalties up to one year imprisonment and a 
doubling of fines in the case of recurrence.  The c opyright holder could also approach a Court to seize 
samples of usurped or pirated work.  As per th e Action Plan in document WT/ACC/CPV/9/Rev.1, the 
Copyright Law would be revised by [July 2005], a nd training and technical assistance was required to 
ensure compliance with the relevant provisions of the TRIPS Agreement.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
230. The representative of Cape Verde said that servi ces played an important role in the economy 
of Cape Verde.  Over the period 1998-2002, servi ces had accounted for about 65 per cent of the GDP.  
The five most significant services sectors were telecommunications, constr uction and engineering, 
tourism and related services, trans portation, and financial services.  He submitted detailed information 
on policy measures affecting trade in services in document WT/ACC/CPV/4.   
231. Several government departments were involve d in the regulation of trade in services, 
including the Ministry of Economy, Competition and Growth; the Secretary of State for Tourism; the 
General Department of Tourism; CAPEVERDE Investments; the Ministry of Infrastructures and Transport; the Institute to Assist Small and Me dium Enterprises; the Ministry of Finance and 
Planning; the Ministry of Health; the Ministry of Education and Human Resource Capacity-Building; 
the Ministry of Culture; the Ministry of Agriculture and Fisheries; the National Food Security Agency; the Bank of Cape Verde; and the Chambers of Commerce.  Many professional associations also played a role in this area, including the Bar Association, the Association of Women Lawyers, the 
Doctor's Association, and the Association of Masons and Carpenters.  
232. Although many services had undergone significant liberalization, monopolies remained in the 
provision of certain basic services, notably in telecommunications (fixed networks), electricity 
(energy distribution) and water.  These monopo lies functioned under terms set by concession 
contracts signed with the Government of Cape Verde.   WT/ACC/SPEC/CPV/5 
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 233. Cape Verde's strategy for growth in the service s sector had been to privatize the provision of 
many services and to open the market to free and fair competition.  Cape Verde encouraged foreign 
investment and pursuant to the Foreign Inv estment Law No. 89/IV/93 of 13 December 1993, 
foreigners could invest and work in nearly every service sector.  Regulatory Law No. 1/94 set out the procedures for authorization of foreign direct investment.   
234. Pursuant to Law No. 47/IV/92 of 6 July 1992 and the privatization process initiated in 1993, 
joint ventures in financial services were encourag ed (though were not mandatory) with a view to 
building domestic entrepreneurial capacity, and increasing efficiency, productivity and 
competitiveness of companies.  Cape Verdean entrep reneurs with experience in financial services 
entered into strategic partnerships or joint vent ures with foreign investors.  In accordance with 
Article 7 of the Decree Law No. 87/89 of 24 Nove mber 1989, joint ventures could also be established 
in construction services.   
235. He added that other laws and regulations rele vant for investment in Cape Verde's service 
sectors or sub-sectors included the Tourist Utility Statute (Law No. 55/VI/2005 of 10 January 2005); Industrial Statute (Decree Law No 108/89 of  30 December 1989); Law No. 92/IV/93 of 
15 December 1993 on export and re-export incen tives; and Law No. 43/III/88 of 27 December 1988 
amended by Law No 32/V/97 of 30 June 1997, D ecree Law No. 66/97 of 3 November 1997 and its 
amendments regulating financial services.  Specifi c authorization requirements for courier services 
(currently covered by Decree Law No. 5/ 94) were to be published in 2005.   
236. Concerning legislation regulating manageme nt consulting and related services, the 
representative of Cape Verde said that these services were covered by Decree-Law 37/92 of 16 April 1992 on Accountants; Law No. 126/IV/ 95 of 26 June 1995 on Professional Associations; 
Decree-Law No. 12/2000 of 28 February 2 000 on Auditing; Decree-Law No. 51/2000 of 
4 December 2000 on Attorneys; and the Code of Commercial Enterprises and Registration of Firms 
contained in Legislative Decree No. 3/99 of  29 March 1999, which covered other aspects of 
management consulting services.   
237. On legal services, the representative of Cape Verd e said that recognition as a qualified lawyer 
required residency in Cape Verde and citizenship of Cape Verde or a Portuguese-speaking country.  
Foreign lawyers could provide legal consultancy services on international law and home-country law 
and be associated with, or employ, local lawyers.   
238. Regarding the telecommunications sector, the Institute of Communication and Information 
Technologies (ICTI) had been created through Regulat ory Decree No. 1/2004 of 9 February 2004.  
The principal objectives of the ICTI were the superv ision, technical regulation and inspection of the  WT/ACC/SPEC/CPV/5 
 Page 63 
 
 
 communications sector as well as the promotion and development of information technologies.  In 
addition to the ICTI and its technical regulation,  a separate regulatory body and council had been 
created for the economic regulation of the telecommunications sector.  Both regulatory bodies had 
their own independent decision-making structur es and administrative procedures.  Decree-Law 
No. 70/95 of 20 November 1995 defined valu e-added services as services that, while having 
fundamental or complimentary telecommunication services as their sole support, did not require their 
own telecommunications infrastructure.  Authorizati on to operate value-added services was granted to 
registered commercial operators and legal enterprise s, including foreign owned affiliates that had the 
provision of telecommunication services as their primar y or commercial objective.  He stated that the 
provision of data services covere d transmission of these services through any technological means, 
including internet protocol.   
239. On the opening up of the telecommunications sector, the representative of Cape Verde said 
that invitations to tender for mobile telephone services had been launched and the selection process 
was in progress.  One or more internet service provide rs were also expected to be operational in 2004.  
Cabo Verde Telecom had monopoly rights on the provision of fixed network services.  These 
monopoly rights had been established, until 27 November 2021, under a 25 year Concession 
Agreement (Decree Law No. 13/96 of 18 March 1996) .  His Government set the prices for these 
services.  He stated that his Government woul d make efforts to renegotiate this Concession 
Agreement, and that Cape Verde would prov ide unlimited market access for these services upon 
termination of the monopoly rights - even if the te rmination occurred before 27 November 2021.   
240. Concerning tourism and travel related services,  the representative of Cape Verde said that 
revenues from tourism had increased from about  CVE 2.9 billion in 1999 to more than 
CVE 7.5 billion (or 10.2 per cent of GDP) in 2002.  Fo reign investment in the tourism sector had also 
grown steadily.  Some 4,000 jobs had been created in tourism infrastructure and services over the 
period 1994-2002.  He confirmed that there was no Law in Cape Verde that discriminated against 
foreign suppliers.  "Tourism Utility Status", regulated by Law No. 55/VI/2005, entitled foreign 
investors and workers to certain fiscal and customs incentives, i.e. duty free import of materials, tax 
exemptions, profit or salary remittances abroad, etc.   
241. He added that Decree Law No. 4/94 and Re gulatory Decree No. 3/94 of 7 February 1994 
regulated the activities of tour operators and touris t guides.  Tour operators were not wholesale firms 
but included local operators and the actual organizers of tours.  The basic policies on tourism development were provided for in Law No. 21/IV /91 of 30 December 1991.  Urban Planning had 
been undertaken with zones earmarked for tourism development.  He added that the preservation of 
the environment and the eco-system was a priority fo r Cape Verde.  In this context, all hotels with WT/ACC/SPEC/CPV/5 
Page 64  
 
 more than 21 beds were required to undertake an  environmental impact study.  The tourism 
development policy in Cape Verde also foresaw th e preservation and promotion of local culture.  In 
this regard, cultural entertainment groups had been given support.   
242. Noting that the government enterprise Cape Verde Airlines (TACV) held a monopoly on 
domestic air transportation, maintenance and re pair, and cargo handling, the representative of 
Cape Verde said that the privatization of TACV  had been re-evaluated following domestic and 
international developments in 2001.  In December  2002, a new Privatization Law had been approved 
to facilitate the privatization process.  The Privati zation Office was working at restructuring TACV to 
make TACV financially secure.  Subject to favour able market conditions, the privatization was 
expected to proceed shortly.   
[to be completed] 
[An initial offer on specific commitments in  services has been circu lated in document 
WT/ACC/SPEC/CPV/3 of 1 November 2004.  A revised offer can be found in document  
WT/ACC/SPEC/CPV/3/Rev.1 of 1 June 2005.]   
VII. TRANSPARENCY 
- Publication of information on trade 243. The representative of Cape Verde said that in accordance with the Constitution, all laws and 
legal acts, rules, regulations and public notices fo r the purpose of enforcement were published in the 
Official Bulletin.  He confirmed that all normativ e acts, including SPS or TBT regulations, customs 
and judicial rulings of general application were al so published in the Official Bulletin.  The Official 
Bulletin was available for sale to the public.  The a nnual subscription charges for Series I, II and III of 
the Official Bulletin were CVE 5,000, 3,500 and 3,00 0 respectively, while individual copies were sold 
for CVE 10 per page.  Copies were also available at the National Archives and the National Library of 
Cape Verde.  He confirmed that the Official Bulle tin would be made available electronically after the 
National Press had carried out the necessary tec hnological upgrades.  He requested financial and 
technical assistance for this purpose.  Users seek ing to access the proposed website of Official 
Bulletins would be charged for the service.  The f ee structure for this future service had not been 
established yet.  His Government would consider a proposal to use electronic availability as a basis 
for a regulatory review mechanism that included publication for prior comment, thereby addressing 
the transparency requirements in the areas of TBT a nd SPS and providing Cape Verde with a valuable 
tool for good rule making.    WT/ACC/SPEC/CPV/5 
 Page 65 
 
 
 244. The representative of Cape Verde confirmed th at Cape Verde would, upon accession, fully 
and promptly implement Article X of the GATT 1994 and other transparency provisions in the WTO 
Agreements requiring notification and publication.  He further confirmed that no law, regulation, 
judicial decision, administrative rulings, or other measures of general appli cation pertaining to or 
affecting trade in goods, services and TRIPS, would become effective prior to its publication.  The publication of such laws, regulati ons and other measures would incl ude the effective date of these 
measures and list the products and/or services affected by the particular measure.   
- Notifications 
[to be completed] 
VII. TRADE AGREEMENTS 
245. The representative of Cape Verde said that Cape Verde was a member of the Economic 
Community of West African States (ECOWAS).  The ECOWAS Treaty called for free trade, free 
movement of persons, right of residence and est ablishment, free movement of capital, and an 
Economic Union with a common currency for the EC OWAS Member States.  Cape Verde presently 
only provided for the free movement of persons among the ECOWAS Member States. 
246. All 15 ECOWAS Member States had agreed to establish a Customs Union and adopt a 
common external tariff, which for the moment was under further study and had not yet been implemented.  In accordance with Article 35 of the revised ECOWAS Treaty, signed on 24 July 1993, 
the Customs Union among the Member-States was to  have been established over a ten year period 
(i.e. by 1 January 2000).  Within the Customs Union, all duties and border charges were to be 
eliminated, and Member-States were accorded duty-fr ee treatment in each other's markets.  Non-tariff 
barriers such as quotas, quantitative restrictions and pr ohibitions were also to be removed.  A common 
external tariff was to be established which would be applied to imports from outside the Customs 
Union.  He provided a roadmap for implementing the common external tariff and for establishing the 
Customs Union.   
247. Unprocessed goods and traditional handicraft produ cts were covered by Article 36.2 of the 
revised ECOWAS treaty.  These goods were to be accorded duty and quota free treatment within the 
ECOWAS Community with immediate effect.  However, the ECOWAS Heads of State had deferred 
the implementation of this measure.   
248. Cape Verde had concluded a free trade agreement with a group of African 
Portuguese-speaking countries - Angola, Guinea Bissau , Mozambique and Sao Tome and Principe.  WT/ACC/SPEC/CPV/5 
Page 66  
 
 This agreement had been signed on 30 March 1980.   Free trade among the parties had not yet been 
undertaken.  He provided a list of Cape Verde's Fo reign Trade Agreements in Annex 8A of document 
WT/ACC/CPV/3.   
CONCLUSIONS 
249. The Working Party took note of the explanations  and statements of Cape Verde concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Cape Verde in relation to certain specific matters which are reproduced in paragraphs [...] of 
this Report.  The Working Party took note that  these commitments had been incorporated in 
paragraph 2 of the Protocol of A ccession of Cape Verde to the WTO. 
250. Having carried out the examination of the foreign trade regime of Cape Verde and in the light 
of the explanations, commitments and concessions ma de by the representative of Cape Verde, the 
Working Party reached the conclusion that Cape  Verde be invited to accede to the Marrakesh 
Agreement Establishing the WTO under the provisions of  Article XII.  For this purpose, the Working 
Party has prepared the draft Decision and Protocol  of Accession reproduced in the Appendix to this 
Report, and takes note of Cape Verde's Sche dule of Concessions and Commitments on Goods 
(document WT/ACC/CPV/.../Add.1) and its Sche dule of Specific Commitments on Services 
(document WT/ACC/CPV/.../Add.2) that are annexed to the draft Protocol.  It is proposed that these 
texts be adopted by the General Council when it ad opts the Report.  When the Decision is adopted, 
the Protocol of Accession would be open for acceptance by Cape Verde which would become a 
Member thirty days after it accepts the said Protocol .  The Working Party agreed, therefore, that it had 
completed its work concerning the negotiations fo r the accession of Cape Verde to the Marrakesh 
Agreement Establishing the WTO.   
[to be completed]  WT/ACC/SPEC/CPV/5 
 Page 67 
 
 
 ANNEX 
Laws, Regulations and Other Information Provi ded to the Working Party by Cape Verde  
− Resolution No. 67/V/97 of 31 December 1997; 
− Notice No. 4/98 of the Bank of Cape Verde; 
− Decree Law No. 18/93 "On Banks" of 29 March 1993; 
− The Decree Law of the Republic of Cape Ve rde No. 29/93 on "Exchange Regime" of 
24 May 1993; 
− The Law of the Republic of Cape Verde No. 89/IV/93 "On General Conditions for Making 
Foreign Investments" of 13 December 1993; 
− Regulatory Decree No. 1/94 "On Foreign Inv estment Authorization" of 3 January 1994; 
− Regulatory Decree No. 7/2004 "On Statutes of Cabo Verde Investments" of 11 October 2004; 
− Regulatory Decree No. 11/93 "On Investment Companies" of 16 July 1993; 
− The Legislative Decree of the Republic of Ca pe Verde No. 14/97 on "Evaluation of the 
Environmental Impact" of 1 July 1997; 
− The Decree Law of the Republic of Cape Ve rde No. 52/2003 on "G oods and Services Price 
Regime" of 24 November 2003; 
− The Decree Law of the Republic of Cape Verde No. 2/2004 on "Price Regime" of 
19 January 2004; 
− The Law of the Republic of Cape Verde No. 88/V/98 "On Juridical Regime for Consumer 
Protection and Defence" of 31 December 1998; 
− Decree Law No. 53/2003 "On Competition" of 24 November 2003; 
− Decree Law No. 16/97 "On Administrative appeals" of 10 November 1997; 
− Decree Law No. 18/97 "On Administrative Procedures" of 10 November 1997; 
− The Draft Decree-Law "On Mediation"; 
− The Draft Law "On Fiscal Legislation"; 
− The Draft Decree-Law "On Mediation Centres"; 
− The Draft Justification Note for the Arbitration Law; 
− The Draft Law "On Arbitration"; 
− The Draft Law "On Arbitration Centres"; 
− Decree Law No. 30/2005 "On Mediation Centers" of 9 May 2005; 
− Decree Law No. 31/2005 "On Mediation" of 9 May 2005; 
− The Draft Justification Note on the Mediation Package; 
− The Revision Proposal of Decree-Law of the Republic of Cape Verde No. 5/99 "On the 
Commerce Juridical Regime" of 1 February 1999; 
− The Resolution of the Republic of Cape Verde No. 31/86 "On Trade Licenses Fees" of 
6 September 1986;  
− The Decree Law of the Republic of Cape Ve rde No. 31/86 on "Taxes and Emoluments of 
Commercial Licensing" of 6 September 1986; 
− Official determination of the Republic of Ca pe Verde No. 16/99 regarding the competence to 
grant, renew, refuse, suspend or revoke au thorisation for the exercise the wholesale and 
commercial agent activities of 3 January 2000; 
− The Decree Law of the Republic of Cape Verde No. 3/93, on "Regulation of Pharmaceuticals 
and Medications" of 2 February 1993; 
− The Decree Law of the Republic of Cape Verde No. 3/98 on "Import Quota Regime" of 
1 February 1999; 
− The Ministerial Ordinance of the Republic of Ca pe Verde No. 2/99 on "Prior Registration" of 
8 February 1999; 
− The Ministerial Ordinance of the Republic of Cape Verde No. 3/2004 on "Foreign Trade 
Title" of 26 January 2004; WT/ACC/SPEC/CPV/5 
Page 68  
 
 − The Ministerial Ordinance of the Republic of Cape Verde No. 13/2004 on "Foreign Trade 
Titles" of 14 June 2004; 
− The Ministerial Ordinance of the Republic of  Cape Verde No. 4/2004 on "Registration and 
Licensing Procedures" of 26 January 2004; 
− The Decree Law of the Republic of Cape Verd e No. 50/2003 on "Juridical Regime of the 
Commerce Sector" of 24 November 2003; 
− Draft Decree Law "On Juridical Regime of Foreign Trade", amending Decree-Law 
No. 51/2003; 
− Decree Law No. 59/99 "On Regulations on the Re gistration of Firms" of 27 September 1999; 
− Decree Law No. 23/VI/2003 "Approving the ICE Regulation" of 14 July 2003; 
− The Ministerial Ordinance of the Republic of Cape Verde No. 6/2004 on "Liberalization of 
Wheat Flour" of 16 February 2004; 
− Road Map for the ECOWAS Common External Tariff/Customs Union: 
− Protocol "On Conditions Governing the A pplication of the Community Levy" of 
27 July 1996; 
− Law No. 14/VI/2002 "On Approval of the Ta x Reform System" of 19 September 2002; 
− Law No. 14/VI/2002 "On Tax on Expenses – VAT, Article 8:  Exemptions in the Internal 
Operations" of 19 December 2002; 
− Decree Law No. 22/2003 "On VAT Regulation" of 14 July 2003; 
− The Decree Law of the Republic of Cape Verde No. 2/2002, on "Reference Price and 
Minimum Price on Chicken Meat" of 12 August 2002; 
− The Draft Customs Code of the Republic of Cape Verde; 
− The Decree-Law of the Republic of Cape Verde No. 108/89 "On the Industrial Activity 
Statute" dated 30 December 1989; 
− The Law of the Republic of Cape Verde No. 92/IV/93 "On Regime of Incentives Applicable 
to the Export or Re-export of Goods and Services" dated 15 December 1993; 
− The Law of the Republic of Cape Verde No. 42/ IV/92 "On the Tourism Utility Statute" dated 
6 April 1992; 
− The Decree Law of the Republic of Cape Verd e No. 48/99 on "Free Commercial Zones" of 
2 August 1999; 
− The Law of the Republic of Cape Verde No. 83/V/98 "On the Commercial Franc Zones 
Regime" of 21 December 1998; 
− The Law of the Republic of Cape Verde No. 99/IV/93 "On Free Enterprise Law" of 
31 December 1993; 
− Draft of Legislation Pertaining to Livestock;  
− The Draft Industrial Property Code of Cape Verde; 
− The Draft Revision of the Law "On Copyrights" No. 101/III/90 of 27 December 1990; 
− Legislative Decree No. 9/95 of 27 October 1995; 
− Legislative Decree No. 12/97 of 9 June 1997; 
− Legislative Decree No. 5/95 of 27 June 1995; 
− The Draft Decree-Law "On Financial Management Companies"; 
− The Draft Law No. 43/III/88 of 27 December 1998; 
− The Draft Alteration on Law No. 43/III/88; 
− Proposal to Alter Law No. 43/III/88 of 27 December 1988;. 
− Law No. 32/V/97 amending Law No. 43/III/88; 
− Law No. 55/VI/2004 "On Tourism Utility  Statute" of 10 January 2004; 
− Decree Law No. 40/2004 "On Conferring to Cabo Verde Investments Transitory Powers to 
Manage, Administer and Supervise Inte gral Tourism Development Zones" of 
11 October 2004;  WT/ACC/SPEC/CPV/5 
 Page 69 
 
 
 − The Draft Alterations to the Law "On Complementary Services"; and 
− The Draft Law "On Financial Leasing Companies". 
 
 WT/ACC/SPEC/CPV/5 
Page 70  
 
 Table 3:  Price Controls
 
HS Product Level of Application Type of 
control Observations 
CVE 48/kg wholesale, ex-
warehouse 1st 
CVE 54/kg Retail, at all islands 
CVE 35/kg wholesale, ex-
warehouse 10.06.30 
 
 Rice 
 
 
2nd 
CVE 38.5/kg Retail, at all islands Maximum 
CVE 55/Kg Wholesale, ex-warehouse 17.01.11 
17.01.12 
17.01.91 
17.01.99 Sugar 
(Granular) CVE 61.5/kg Retail, at all islands Maximum 
Wholesale, ex-warehouse: 
CVE 30/kg  1st 
Retail, at all islands: 
CVE 33/kg  
CVE 28/litre 
Wholesale, ex-warehouse: 
CVE 25/kg  10.05.90 Corn 
2nd 
 
 Retail, at all islands: 
CVE 28/kg  CVE 21/litre Maximum In force since 
5 January 1998 and 
replaced former prices enacted on 1 March 1996 
Wholesale – CVE 36,000/Metric tonne 
Price ex-factory in Mindelo and at all ports 
of other islands. 
Resale, at all islands – CVE 2,035/bags of 50kg 1101.00 Wheat 
Flour 
CVE 46/Kg – Retail, at all islands Maximum 
1103.11. Wheat 
Bran CVE 15,000/Metric tonne 
Price Wholesale ex-factory. Maximum In force since 
5 October 1998 and 
replaced former prices enacted on 
29 December 1994 
CVE 90/Kg Wholesale - Price ex-factory; 
CVE 100/Kg Retail There are pieces of bread of: 
Weight Wholesale Retail 19.05.10 Bread and 
bakery 
500g 
250g 
100g CVE 45 
CVE 22 
CVE 9 CVE 50 
CVE 25 
CVE 10 Maximum In force since 
15 October 2001 and replaced former prices 
enacted on 5 October 1998 
2710.00 Gas oil Retail at the fuel station – CVE 63/litre 
In bulk, ex-warehouse – CVE 62.5/litre Fixed 
prices 
2710.00. Gasoline Retail at the fuel station – CVE 110/litre 
In bulk, ex-warehouse – CVE 109.2/litre Fixed 
prices 
27.11.13 Butane 
Gas Bottle of 3kg = CVE 270 
Bottle of 6kg = CVE 570 
Bottle of 12.5kg = CVE 1,350 
Bottle of 55 kg = CVE 5,940 Fixed 
prices In force since 7 June 2004 
and replaced former prices 
enacted on 6 August 2003 which reduced prices on  
3 February 2003. 
2710.00. Kerosene In bulk, ex-warehouse – CVE 39/litre 
Retail – CVE 44/litre Fixed 
prices In force since 7 June 2004 
and replaced former prices 
enacted on 3 February 2003 
27.16.00 Electric 
power supply See Map Annexed to Council of Ministers 
Resolution No. 43/2002, of 30 December 2002 Fixed 
prices In force since 
1 January 2003 and replaced former prices 
enacted in 1985 
24. 03.10 Tobacco C ontract between the Government and the 
Cape Verdean Tobacco Company (SCT). Agreed 
prices However, no legal measure 
has been taken.  WT/ACC/SPEC/CPV/5 
 Page 71 
 
 
 HS Product Level of Application Type of 
control Observations 
30.04.10-
90 Drugs Article 29 of Decree Law No. 3/1993, of 
15  February 1993 Fixed 
prices However, no legal measure 
has been taken. 
22.01.10 Water Map annexed to resolution No. 43/2002 of 
30 December 2002 Fixed 
prices In force since 
1 January 2003 and 
replaced former prices 
enacted on 1998 
 Notes
:  
- The wholesale prices include the price of the bags.  
- Rice and corn are classified according to their quality. 
- The prices of potato and onions are lib eralized in as much as they are not included in the legislation in 
effect. 
- The calculated prices listed are based on the effectiv e purchase price in the in ternational market plus 
international freight, insurance, customs duties and other charges (port fees, storage, etc.), the share of 
financial and investment costs and th e margin according to the market pr actice.  The internal structural 
costs (domestic transport costs and di stribution costs) are considered.  
- Importers of Corn, Rice, Sugar and Wheat flour whic h are subject to maximum prices are obliged to 
distribute 30 per cent of their importation in other islands than Santiago and S. Vincent.  This requirement is now being revoked.  
- Notwithstanding the provisions of Decree Law No. 52/2003 of 24 November 2003, Decree Law 
No. 3/1993 of 15 February 1993 and Ministerial Ordinance No. 2/2004 of 19 January 2004, the prices of drugs and tobacco have been fi xed by their producers and importers. 
- The Government of Cape Verde after consultation with the Chambers of Commerce Upper Council 
(Conselho Superior das Câmaras de Comércio) estab lishes the prices on the basis of their agreed 
margins. 
- The prices listed above are generally  changed when international price changes have a negative impact 
on the companies’ margin. WT/ACC/SPEC/CPV/5 
Page 72  
 
 Table 4(a):  Goods subject to comple te exemption or right to deduction
 
VAT Exemptions  
 Article Description Heading 
1. Food Products – No. 28 of Article 9 
1.1 Meat and edible meat offal, from the following Tariff headings:  
1.1.1 of bovine animals, fresh, chilled,  frozen,  0201.10.00 to 0202.30.00 
1.1.2 of swine, fresh, chilled, frozen,  0203.11.00 to 0203.29.00 
1.1.3 of sheep and goats, fresh, chilled, frozen,  0204.10.00 to 0204.50.00 
1.1.4 of poultry (roosters, chickens, ducks, geese, turkeys, guineas, 
domestic species) 0207.11.00 to 0207.36.00 
1.1.5  pig fat free of lean meat, and poultry fat, not rendered or otherwise 
extracted fresh chilled frozen salted in brine dried or smoked 0209.00.00 
1.1.6 Meat and edible meat offal, salted, in brine, from swine and bovine 
animals 0210.11.00 to 0210.20.00 
1.2 Fish from the following Tariff headings:  
1.2.1 from the following fish, fresh, frozen or chilled, excluding fish 
fillets, livers, roes and semen 0302.31.00 to 0302.39.00 
1.2.1.1  Tunas and Bonito 0303.41.00 to 0303.49.00 
1.2.1.2 Herring 020340, 0303.50.00 
1.2.1.3 Mackerel (Scomber scombrus, Scomber australasicus,   0302.64.00 
 Scomber japonicus) 0303.74.00 
1.2.2.   Smoked fish, whether or not in fillets, excluding Pacific and Danube 
salmon 0305.42.00, 0305.49.00 
1.2.3 Fish, dried, whether or not salted but not smoked, excluding cod 0305.59.00 
1.2.4 Fish, salted but not dried or smoked, and fish in brine, excluding cod, 
and anchovies 0305.61.00, 0305.69.00 
1.3 Milk and dairy products and eggs from the following tariff headings:  
1.3.1 Milk and cream, not concentrated nor containing added sugar or 
other sweetening matter, in powder, granules or other solid forms 0401.10.00 to 0401.30.00 
1.3.2 Milk and cream, concentrated or containing added sugar of other 
sweetening matter 0402.10.10 to 0402.99.00 
1.3.3 Butter milk and curdled milk and cream, yogurt, kephir and other 
fermented or acidified milk and cr eam, whether or not concentrated 
or containing added sugar or other sweetening matter, or flavoured or containing added fruits or cocoa 0403.10.10 to 0403.90.00 
1.3.4 Butter and other fats derived from milk 0405.10.10 to 0405.90.10 
1.3.5 Cheese and curd 0406.10.10 to 0406.90.10 
1.3.6 Birds eggs, in shell, fresh, preserved or cooked, excluding eggs for 
hatching 0407.00.00.90 
1.4 Vegetables from the following tariff headings:  
1.4.1 Potatoes, fresh or chilled, excluding seed  0701.90.00 
1.4.2 Tomatoes, fresh or chilled  0702.00.00 
1.4.3 Onions and shallots, garlic, l eeks and other alliaceous vegetables 
fresh or chilled 0703.10.00 to 0703.90.00 
1.4.4 Cabbages, cauliflower, kohlrabi,  kale and similar edible brassicas, 
fresh or chilled 0704.10.00 to 0704.90.00 
1.4.5 Lettuce and chicory, fresh or chilled  0705.11.00 to 0705.29.00 
1.4.6 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar 
edible roots, fresh or chilled. 0706.10.00 to 0706.90.00 
1.4.7 Cucumbers including gherkins, fresh or chilled.  0707.00.00 
1.4.8 Leguminous vegetables, shelled or unshelle d, fresh or chilled 0708 .10.00 to 0708.90.00 
1.4.9 Fruits of the genus Capsicum  (peppers) or of the genus Pimenta  
(e.g. allspice) 0709.60.00  WT/ACC/SPEC/CPV/5 
 Page 73 
 
 
  Article Description Heading 
1.4.10 Dried leguminous vegetables, shelled, whether or not skinned or 
split, excluding yellow peas. 0713.10.00 to 0713.90.00 
1.4.11 Cassava (manioc) 0714.10.00 
 sweet potatoes  0714.20.00 
 Yams 0714.90.10 
1.5 Fruits  
1.5.1 Fresh Bananas  0803.00.10  
  0803.00.20 
1.5.2 Guavas mangoes and mangosteens, fresh or dried  0804.50.10, 0804.50.90 
1.5.3 Citrus fruit, fresh or dried  0805.10.00 to 0805.90.00 
1.5.4 Grapes, fresh 0806.10.00 
1.5.5 Melons, watermelons and papayas (papaws) fresh.  0807.11.00 to 0807.20.00 
1.5.6 Apples, pears and quinces, fresh  0808.10.00, 0808.20.00 
1.5.7 Apricots, cherries, peaches, (including nectarines), plums and sloes, 
fresh 0809.10.00 to 0809.40.00 
1.5.8 Other fruit, fresh  
Strawberries  Raspberries, blackberries, mulb erries and loganberries  
Black, white or red currant,  including the "cassis" 
Cranberries, blueberries and other fruits  Kiwis 
Other fruit  
0810.10.00 0810.20.00 
0810.30.00 
0810.40.00 0810.50.00 
0810.90.00 
1.6 Cereals from the following tariff headings   
1.6.1 Wheat  1001.90.00 
1.6.2 Corn (maize), excluding seed and popcorn 1005.90.00 
1.6.3 Rice 1006.10.90 to 1006.40.00 
1.6.4 Cane or beet sugar and chemically pure sucrose, in solid form 1701.11.00 to 1701.99.90 
1.6.5 Ordinary bread 1905.90.00.91 
1.7 Fat or oil from the following tariff headings:  
1.7.1 Pig fat (including lard) 1501.00.00 
1.7.2 Soybean oil and its fractions, whether or not refined, but not 
chemically modified, excluding crude oil 1507.90.00 
1.7.3 Peanut oil and its fractions, whether or not refined, but not  1508.90.10 
 chemically modified, excl uding crude oil 1508.90.90 
1.7.4 Olive oil and its fractions, whether or not refine, but not chemically 
modified:  Virgin; other, packed fo r retail in pack containers of less 
than 5 litres. 1509.10.00 to 1509.90.90 
1.7.5 Sunflower-seed oil or safflower and its fractions whether or not 
refined but not chemically mo dified, excluding crude oil. 1512.19.00 
1.7.6 Margarine, excluding liquid margarine  1517.10.00 
2. Goods from No. 15 of Article 9 
2.1 Printed books, brochures, leaflets and similar printed matter, whether 
or not in single sheets 4901.10.00 to 4901.99.90 
2.2 Newspapers, journals and periodicals, whether or not  4902.10.00  
 illustrated containing advertising material 4902.90.00 
2.3 Children's picture, drawing or colouring books 4903.00.00 
2.4 Music, printed or in manuscript, whet her or not bound or illustrated 4904.00.00 
2.5 Maps and hydrographic or similar charts of all kinds, including 
atlases, wall maps, topographical plans and globes printed 4905.10.00 to 4905.99.00 
3. Goods from No. 29 of Article 9 
3.1 Provitamins and vitamins, natural or reproduced by synthesis 
(including natural concentrates, deri vatives thereof used primarily as 
vitamins, and intermixtures of the foregoing, whether or not in any solvent. 2396.10.00 to 2936.90.00 WT/ACC/SPEC/CPV/5 
Page 74  
 
  Article Description Heading 
3.2 Medicaments, including those for veterinary use, as well as patents 
and other pharmaceutical products fo r therapeutic or prophylactic 
uses 3001.10.00 to 3006.60.00 
3.3 X-Ray Film 3701.10.00 
3.4 Instruments and appliances used in medical, surgical, dental or 
veterinary sciences, including scintigraphic apparatus, other electro-
medical apparatus and sight testing instruments; parts and 
accessories thereof. 9018.11.00 
to 
9018.90.00 
3.5 Mechano-therapy appliances; massage apparatus; psychological 
aptitude-testing apparatus; ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or  other therapeutic respiration 
apparatus. 9019.10.00 
to 9019.20.00 
3.6 Orthopaedic appliances, including crutches, surgical belts and 
trusses; artificial parts of the body; hearing aids and other appliances; which are worn or carried or implanted in the body to compensate for 
a defect or disability. 9021.11.00 
to 9021.90.00 
3.7 Apparatus based on the use of X-rays or alpha, beta or gamma 
radiation, whether or not for medical, surgical or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and 
other X-ray generators, control panels and desks, screens, screens, 
examination or treatment tables, chairs and the like. 9022.12.00  
to 9022.90.00 
3.8 Thermometers and pyrometers not combined with other instruments 9021.11.00 to 9025.19.00 
4. Goods from Nos. 32 and 33 of Article 9 
4.1 Eggs for hatching 0407.00.00 
4.2 Seed potatoes  0701.10.00 
4.3 Corn seed  1005.10.00 
4.4 Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, 
in growth or in flower, chicory plants and roots 0601.10.00, 0601.20.00 
4.5 Other live plants (including their roots), cuttings and slips, 
mushroom spawn 0602.10.00 to 0602.90.00 
4.4 Vegetable seeds 1209.91.00 
4.7 Cereal straw and husks, unprepared, whether or not chopped ground, 
pressed or in the form of pellets 1213.00.00 
4.8 Rutabagas (swedes), mangolds, fodder roots, hay, alfalfa (lucerne) 
clover, sainfoin, forage kale, lupines, vetches and similar forage 
products, whether or not in the form of pellets  1214.10.00, 1214.90.00 
4.9 Flours, meals and pellets of fi sh or of crustaceans, molluscs and 
other aquatic invertebrates 2301.20.00 
4.10 Oil cake and other solid residues, whether or not ground or in the 
form of pellets, resulting from the extraction of vegetable oils 2304.00.00 to 2306.90.00 
4.11 Vegetable materials and vegetable waste, vegetable residues and by-
products, whether or not in the form of pellets, of a kind used in animal feeding Preparations of a kind used in an imal feeding, 
excluding dog and cat food 2308.10.00, 2308.90.00 
 
4.12 Preparations of the type utilized in animal  feed, except dogs and cats 2309.90.10, 2309.90.90 
4.13 Salt tablets for use in animal feed 2501.00.30 
4.14 Mineral or chemical fertilizer s  3101.00.00 to 3105.90.00 
4.15 Insecticides, fungicides, herbicides, anti-sprouting products and plant 
growth regulators 3808.10.10 to 3808.30.00 
4.16 spades, shovels, mattocks, picks,  hoes, forks and rakes: axes, bill 
hooks and similar hewi ng tools; secateurs a nd pruners and other 
hand tools of a kind used for agriculture and horticulture or forestry 8201.10.00 to 8201.90.00 
4.17 Liquid elevators  8413.82.00 
4.18 Agricultural, horticultural or forestry machinery for soil preparation 
or cultivation; Lawn or sports ground rollers  8432.10.00 to 8432.90.00  WT/ACC/SPEC/CPV/5 
 Page 75 
 
 
  Article Description Heading 
4.19 Harvesting or threshing machinery including straw or fodder balers;  
Grass or hay mowers; 8433.11.00 to 8433.59.00 
8433.90.00 
4.20 Poultry incubators and brooders 8436.21.00 
4.21 Tractors 8701.10.00 to 8701.90.00 
4.22 Live animals - horses, asses, mules and hinnies, bovine, swine, sheep 
and goats, chickens, ducks, geese,  turkeys and guineas of domestic 
species. 0101.11.00 to 0105.99.00 
5. Goods from No. 35 of Article  9 
5.1 Fish netting and fishing nets 5608.90.10 
5.2 Fishing rods 9507.10.00 
5.3 Hooks, whether or not in terminals 9507.20.00 
5.4 Fishing spools 9507.30.00 
5.5 Other fishing articles 9507.90.00 WT/ACC/SPEC/CPV/5 
Page 76  
 
 Table 4(b):  Exemptions listed in Article 8 of VAT Law
 
Exemptions in the Internal Operations 
The transmission of goods and rendering services, internally, are exempt from VAT, whenever such 
exemption is justified for technical reasons and reasons of economic or social policy, namely: 
a) The transmissions of goods and rendering of servi ces performed in the ambit of agricultural, 
forestry, livestock and fishing activities; 
b) The rendering of services and the closely connect ed transmission of goods performed in the 
exercise of medical and sanitary activities, edu cational and professional training, protection to 
infancy, youth and old age, social security and assistance, habitually pursued by public 
entities or organisms without……; 
c) The services provided that consist in classrooms mi nistered on a personal basis, at the level of 
pre-school basic education, secondary school, technical professional, medium or higher education; 
d) The services provided by non-profit organizations, that explore establishments or installations 
destined for the practice of sports, recreationa l and physical education activities, to persons 
that practice these activities; 
e) The services provided and the transmissions of goods connected to them, performed by 
collective persons under public law and non-pr ofit organizations pertaining to congresses, 
colloquium, conferences, seminars, courses and analogous manifestations of a scientific, cultural, educational or technical nature; 
f) The services provided to the respective promoter s by professionals of the respective area, for 
the execution of theatrical spectacles, choreogr aphy, musical spectacles, circus, sports and 
others, film production, music editing a nd other sports of sound and image; 
g) The face value transmission of postal stamps in circulation or of stamped amounts, as well as 
their respective sales commission; 
h) The services provided and the transmission of  connected goods, performed by the public 
postal services, except for telecommunications. 
i) The transmissions of copyright and the authori zation for the utilization of intellectual work, 
defined in Law No. 101/III/90, of 29 December, Copyright Law, when performed by the authors themselves, their heirs or legator; 
j) The transmission done by the artists themselves, their heirs or legatos, of objects of their 
authorship, under the conditions and limits fixed in the VAT Regulation. 
k) The transmission of newspapers, magazines and bo oks considered of a cultural, educational, 
technical or recreational nature; 
l) Lending of personnel by religious or philosophical  institutions to perform exempt activities or 
for spiritual assistance purposes; 
m) Rendering services performed in the collective in terest of their associates, by non-profit 
organizations, as long as these organization pursue objectives of a political, syndical, religious, humanitarian, patriotic, philanthropic, recreational, sports, cultural, civic or of 
representation of economic interests and the so le counterpart is the quota established under 
the terms of the respective statutes; 
n) The transmissions of goods and the renderi ng of services performed by entities whose 
habitual activities are exempt, during occasional de monstrations destined to raise funds for 
their exclusive profit, in a maximum number to be fixed annually in the VAT Regulation and on the condition that the exemption does not provoke competition distortions; 
o) The exploration of gambling, under the terms for eseen in the appropriate legislation, as well 
as the respective commissions; 
p) The transmission of staple goods, to be defined specifically in the VAT Regulation;  WT/ACC/SPEC/CPV/5 
 Page 77 
 
 
 q) The transmission of drugs, including those des tined for veterinary application, as well as 
pharmaceutical specialties and other pharmaceutic al products destined exclusively for 
therapeutic or prophylactic purposes; 
r) The transmission of goods and equipment, of seeds, reproductive species, fertilizers, 
pesticides, herbicides, fungicides and simila rs, as well as nets, hooks and other fishing 
apparatus, also to be enumerated specifically in the VAT Regulation; 
s) The transmission of immovables subject to th e Single Tax on Patrimony, under the terms of 
the respective regulation; 
t) The rental of immovables, including, however, in  the latter, the situations in which the same 
are included in commercial, industrial or service rendering services; 
u) Service rendering performed by funeral or cremation enterprises, as well as the transmission 
of accessory goods to those same services; 
v) The public service of garbage removal; 
w) The transmission of goods affected exclusivel y to an exempt activity and that when the 
respective acquisition or affectation was not the object of a deduction law; and 
x) The activities of the public radio and television companies that are not of a commercial 
character. 
 
 WT/ACC/SPEC/CPV/5 
Page 78  
 
 Table 5: Special Tax on Consumption (STC)
 
 (Articles 24 and 29 of the Law of Taxes on Expenses) 
 
HS Code Description Rates 
(per cent) 
1604.30.00.00 Caviar and caviar substitutes: 10 
2203.00.10.00 and 
2203.00.90.00 Bottled in recipients of a capacity not exceeding 50 cl  
 - Others 30 
2204 - Wine of fresh grapes, including fortified wines; grape must other than 
that of heading 2009:  
2204.10.00   - Sparkling wine 30 
2204.21.00.90  
2204.29.00.90   - In containers holding 2 litres or less: 
  - Others  20 
20 
2205 Vermouth and other wine of fresh grapes flavored with plants or 
aromatic substances:  
2205.10.00.00   - In containers holding 2 litres or less: 30 
2205.90.00.00   - Others  30 
2206 Other fermented beverages (for example, cider, perry, mead); mixtures 
of fermented beverages and mixtures of fermented beverages and non-
alcoholic beverages, not else where specified or included:  
2206.00.10.00 - Beer excluding the one made of malt 30 
2206.00.90.00 -  Others 30 
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less 
than 80 percent vol.; spirits, liqueurs and other spirituous beverages:  
2208.20.00.00  - Spirits obtained by dis tilling grape wine or grape marc (grape 
brandy): 30 
2208.30.00.00   - Whiskies:      30 
2208.40.00.00   - Rum and tafia: 30 
2208.50.00.00   - Gin and Geneva 30 
2208.60.00.00   -  Vodka  30 
2208.70.00.00   - Liqueurs and cordials 30 
2208.90.00.90   - Other 30 
2402 Cigars, cheroots, cigarillos and ci garettes, of tobacco or of tobacco 
substitutes:  
2402.10.00.00  - Tobacco, not stemmed / stripped: 10 
2402.20.00.00 - Tobacco, partly or wholly stemmed/stripped 10 
2402.90.00.00 - Tobacco refuse: 10 
2403 Other manufactured tobacco and manufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco extracts and 
essences:   
2403.10.00.00 Smoking tobacco, whether or not containing tobacco substitutes in any 
proportion: 10 
2710 Petroleum oils and oils obtained from bituminous minerals, other than 
crude; preparations not elsewhere sp ecified or Included, containing by 
weight 70 percent or more of Petroleum oils or of oils obtained from bituminous minerals, these oils be ing the basic constituents of the 
preparations; waste oils:  
2710.00.21.00  -  Lubricating oils 10 
2710.00.29.00  - Others 10 
2710.00.32.00  - Gasoline:  10 
2710.00.33.00  - Gasoline 10 
2710.00.39.00  - Others 10 
2710.00.51.00  - Diesel 10 
3303 Perfumes and toilet waters:  
3303.00.10.00  - - - Floral or flower waters 10 
3303.00.20.00  - - - Floral or flower waters not containing alcohol 10  WT/ACC/SPEC/CPV/5 
 Page 79 
 
 
 HS Code Description Rates 
(per cent) 
3303.00.90.00  - - - Others 10 
3304 Beauty or make-up preparations and preparations for the care of the skin 
(other than medicaments), including sunscreen or sun tan preparations; 
manicure or pedicure preparations:  
3304.10.00.00  - Lip make-up preparations 10 
3304.20.00.00  - Eye make-up preparations 10 
3304.30.00.00  - Manicure or pedicure preparations 10 
  - Others:  
3304.91.00.00  - - Powders, whether or not compressed  10 
3304.99.00.00  - - Others  10 
3604 Fireworks, signaling flares, rain rockets, fog signals and other 
pyrotechnic articles:  
3604.10.00.00  - Fireworks (display):  10 
3604.90.00.00  - Others  10 
4302 Tanned or dressed fur skins (including heads, tails, paws and other 
pieces or cuttings), unassembled, or assembled  (without the addition of 
other materials) other than those of heading 4303:  
4302.11.00.00  - - Of mink 10 
4302.12.00.00  - - Of rabbit or hare  10 
4302.13.00.00  - - Of lamb, the following: As trakhan, Broadtail, Caracul, Persian and 
similar lamb, Indian   Chinese, Mongolian or Tibetan lamb 10 
4302.19.00.00  - - Others 10 
4302.20.00.00  - Heads, tails, paws and other pieces or cuttings, not assembled 10 
4302.30.00.00  - Whole sk ins and pieces or cuttings  thereof, assembled 10 
4303 Articles of apparel, clothing acce ssories and other articles of fur skin:  
4303.10.00.00  - Artic les of apparel and clothing accessories 10 
4303.90.00.00  - Others 10 
4304.00.00.00  Artificial fur and articles thereof 10 
7101 Pearls, natural or cultured, whether or not worked or grated but not 
strung, mounted or set; pearls natural or cultured, temporarily string for convenience of transport  
7101.10.00.00  - Natural pearls  10 
7101.21.00.00 - - Unworked 10 
7101.22.00.00 - - Worked 10 
7102 Diamonds, whether or not worked, but not mounted or set:  
7102.10.00.00  - Unsorted  10 
7102.31.00.00  - - Unworked or simply sawn, cleaved or bruted  10 
7102.39.00.00  - - Other  10 
7103 Precious stones (other than diamonds) and semiprecious stones whether 
or not worked or grated but not strung, mounted or set; ungraded 
precious stones (other than diamonds and semiprecious stones temporarily strung for convenience of transport:  
7103.10.00.00 - Unworked or simply sawn or roughly shaped.  10 
7103.91.00.00 Ruby, sapphire and emerald 10 
7103.99.00.00  - - Other  10 
7104 Synthetic or reconstructed precious or semi-precious stones, whether or 
not worked or grated but not strung, mounted or set; ungraded synthetic or reconstructed precious or semiprecious stones, temporarily strung for 
convenience of transport:   
7104.20.00.00  - Other, unworked or simply sawn or roughly shaped 10 
7104.90.00.00  - Other 10 
7113 Articles of jewelry and parts thereof,  of precious metal or of metal clad 
with precious metal  
7113.11.00.00  - - Of silver, whether or not plated or clad with other precious metals 10 WT/ACC/SPEC/CPV/5 
Page 80  
 
 HS Code Description Rates 
(per cent) 
7113.19.00.00  - - Of other precious metals whether or not plated or clad with precious 
metal 10 
7113.20.00.00  - Of base metal clad with precious metal 10 
7114 Articles of goldsmith's or silversmith's wares and parts thereof, of 
precious metal or metal clad with precious metal:  
7114.11.00.00  - - Of silver, whether or not plated or clad with other precious metal: 10 
7114.19.00.00  - - Of other precious metals whether or not plated or clad with precious 
metal 10 
7114.20.00.00  - Of base metal clad with precious metal 10 
7115 Other articles of precious metal or of metal clad with precious metal  
7115.90.00.00 - Artifacts for technical or laboratory use 10 
7116 Articles of natural or cultured pearls, precious or semiprecious stones 
(natural, synthetic or reconstructed):  
7116.10.00.00  - Of natural or cultured pearls  10 
7116.20.00.00  - Of precious or semiprecious stones (natural, synthetic or 
reconstructed) 10 
7117 Imitation jewelry  
7117.11.00.00  - - Cuff links and studs  10 
7117.19.00.00  - - Other  10 
7117.90.00.00  - Other  10 
Ex-87 Automobiles used to transport persons and merchandise up to 5 tons, 
used, of the headings 8702, 8703, 8704.21.20.11 to 8704.21.20.29 and 
8704.31.20.11 to 8704.31.20.29:  
  - Up to four years old  0 
  - Up to six years old:  30 
  - Up to ten years old 60 
  - With more than ten years old:  150 
 Road tractors for semi-trailers, track -laying tractors, and other tractors, 
except pedestrian controlled tractors and automobiles for the transport 
of merchandise with capacity great er than 5 tons, used, from the 
headings 8701.20.00 to 8710.90.00 and 8704.22.20.11 to 
8704.22.20.19, 8704.23.20.11 to 8704.23.20.19, 8704.32.20.11 to 
8732.20.19, 8704.90.00.11 to 8704.90.00.19:   
  - Up to four years old  0 
  - Up to six years old:  10 
  - Up to ten years old 20 
  - With more than ten years old:  60 
8903 Yachts and other vessels for pleasure or sports; row boats and canoes  
8903.91.00.00  - Sail boats with or without auxiliary motors 10 
8903.91.00.90  - Sail boats with motors 10 
8903.92.00.00  - Motor boats other than outboard motorboats  10 
9303 Other firearms and similar devices which operate by the firing of an 
explosive charge (for example, sporting shotguns and rifles, muzzle loaded firearms Very pistols and other devices designed to project only 
signal flares, pistols and revolvers for firing blank ammunition, captive 
bolt humane killers, line-throwing guns):   
9303.10.00.00  - Muzzle loading firearms  10 
9303.20.00.00  - Other sporting, hunting or target shooting shot-guns, including 
combination short-gun rifles 10 
9303.30.00.00  - Other sporting, hunting or target-shooting rifles 10 
9303.90.00.00  - Other 10 
9304.00.00.00 Other firearms (for example: rifles, carbines, and pistols, spring loaded, 
of air compression or of gas, "mat racas") except those of heading 9307 10  WT/ACC/SPEC/CPV/5 
 Page 81 
 
 
 HS Code Description Rates 
(per cent) 
9701 Paintings, drawings and pastels, executed entirely by hand, other than 
drawing of heading 4906 and other than hand-painted or hand decorated 
manufactured articles; collages and similar decorative plaques; all the 
foregoing, framed or not framed:  
9701.10.00.00  - Paintings, drawings and pastels 10 
9701.90.00.00  - Other 10 
9702.00.00.00 Original engravings, prints  and lithographs, framed and not framed. 10 
9703.00.00.00 Original sculpture and statuary, in any material 10 
9706.00.00.00 Antiquities of an ag e exceeding one hundred years. 10 
 
 
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