RESTRICTED  
  
WT/ACC/SPEC/TLS/5/Rev.1  
 
15 February  2023 
(23-1178) Page: 1/181 
Working Party on the Accession of Timor -Leste  Original: English  
 
  
ACCESSION OF TIMOR -LESTE  
DRAFT REPORT OF THE WORKING PARTY  
Revision  
_______________  
 
 
 
 
 
 
 
 
 
 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  TABLE OF CONTENTS  
I. INTRODUCTION  ................................ ................................ ................................ ... 5 
DOCUMENTATION PROVIDED  ................................ ................................ .......................  5 
INTROD UCTORY STATEMENTS  ................................ ................................ .....................  5 
II. ECONOMIC POLICIES  ................................ ................................ ..........................  6 
- Monetary and fiscal policy  ................................ ................................ ...................  8 
- Foreign  exchange and payment system  ................................ ............................  10 
- Investment regime  ................................ ................................ ............................  11 
- State ownership and privatisation  ................................ ................................ ..... 17 
- Pricing  policy  ................................ ................................ ................................ ..... 18 
- Competitio n policy  ................................ ................................ ............................  22 
III.  FRAMEWORK FOR MAKING AND ENFORCING POLICIES  ................................ ... 23 
- Powers of executive, legislative and judicial branches of Government  ..............  23 
- Government entities responsible for making and implementing policies affecting 
foreign trade  ................................ ................................ ................................ ..... 26 
- Division of authority between central and sub -central Governments  ................  27 
- Description of judicial, arbitral or administrative tribunal or procedures  ..........  27 
IV. POLICIES AFFECTING TRADE IN GOODS  ................................ ...........................  29 
- Trading rights, registration requirements for engaging in importing and 
exporting  ................................ ................................ ................................ ..........  29 
- Trade facilitation  ................................ ................................ ...............................  31 
A. IMPORT  REGULATIONS  ................................ ................................ .....................  34 
- Ordinary customs duties  ................................ ................................ ...................  34 
- Other duties and charges  ................................ ................................ ..................  34 
- Tariff quotas, tariff exemptions  ................................ ................................ .........  35 
- Fees and charges for services rendered  ................................ ............................  36 
- Quantitative import restrictions, including prohibitions, quotas and licensing 
systems  ................................ ................................ ................................ .............  37 
- Impo rt licensing procedures  ................................ ................................ .............  37 
- Customs valuation  ................................ ................................ .............................  38 
- Rules of origin  ................................ ................................ ................................ ... 43 
- Pre-Shipment inspection  ................................ ................................ ...................  44 
- Other customs formalities  ................................ ................................ .................  44 
- Application of internal taxes on imports  ................................ ............................  44 
- Anti-dumping, countervailing duties, safeguard regimes  ................................ .. 46 
B. EXPORT REGULATION  ................................ ................................ .......................  47 
- Customs tariffs, fees and charges for services rendered, application of internal 
taxes to exports  ................................ ................................ ................................  47 
- Quantitative export restrictions, including prohibitions, quotas and licensing 
syste ms ................................ ................................ ................................ .............  47 
- Export subsidies  ................................ ................................ ................................  48 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  ...........................  48 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Industrial policy, including subsidies  ................................ ................................  48 
- Technical barriers to trade, standards and certification  ................................ .... 49 
- Sanitary and phytosanitary measures  ................................ ...............................  52 
- Trade -related investment measures  ................................ ................................ .. 63 
- Free zones, special economic zones  ................................ ................................ .. 63 
- Government procurement  ................................ ................................ .................  64 
- Transit  ................................ ................................ ................................ ...............  68 
- Agricultural policies  ................................ ................................ ..........................  68 
(a) Imports  ................................ ................................ ................................ .............  68 
(b) Exports  ................................ ................................ ................................ ..............  68 
(c) Internal policies  ................................ ................................ ................................  69 
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  ................................ .........  70 
1. GENERAL  ................................ ................................ ................................ ...........  70 
- Application of n ational and most favoured nation treatment to foreign nationals
 ................................ ................................ ................................ ..........................  72 
- Fees and taxes  ................................ ................................ ................................ .. 72 
2. SUBSTANTI VE STANDARDS OF PROTECTION  ................................ .....................  72 
- Copyright and related rights  ................................ ................................ .............  72 
- Trademarks, including service marks  ................................ ................................  73 
- Geographical Indications, including appellations of origin  ................................  73 
- Industrial designs  ................................ ................................ .............................  73 
- Patents  ................................ ................................ ................................ ..............  74 
- Plant variety protection  ................................ ................................ .....................  74 
- Layout designs of integrated circuits  ................................ ................................  74 
- Requirements on undisclosed information, including trade secrets and test data
 ................................ ................................ ................................ ..........................  74 
3. MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  ............  74 
4. ENFORCEMENT  ................................ ................................ ................................ .. 75 
- Civil judici al procedures and remedies  ................................ ..............................  76 
- Administrative procedures and remedies  ................................ ..........................  76 
- Provisional measures  ................................ ................................ ........................  76 
- Special border measures  ................................ ................................ ...................  76 
- Criminal procedures  ................................ ................................ ..........................  77 
VI. POLICIES AFFECTING TRADE IN SERVICES  ................................ .......................  78 
VII.  TRANSPARENCY  ................................ ................................ ................................  83 
- Publication of information on trade  ................................ ................................ ... 83 
- Notifications  ................................ ................................ ................................ ...... 84 
VIII.  TRADE AGREEMENTS  ................................ ................................ .........................  84 
CONCLUSIONS  ................................ ................................ ................................ ...........  85 
ANNEX 1  ................................ ................................ ................................ ....................  87 
ANNEX 2(A)  ................................ ................................ ................................ ...............  94 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 2(B)  ................................ ................................ ................................ ...............  95 
ANNEX 2(C)  ................................ ................................ ................................ ...............  96 
ANNEX 3  ................................ ................................ ................................ ....................  98 
ANNEX 4  ................................ ................................ ................................ ....................  99 
ANNEX 5  ................................ ................................ ................................ ..................  100  
ANNEX  6 ................................ ................................ ................................ ..................  101  
ANNEX  7 ................................ ................................ ................................ ..................  102  
ANNEX 8(A)  ................................ ................................ ................................ .............  103  
ANNEX 8(B)  ................................ ................................ ................................ .............  107  
ANNEX 8(C)  ................................ ................................ ................................ .............  111  
ANNEX 9  ................................ ................................ ................................ ..................  115  
ANNEX 10 ................................ ................................ ................................ .................  116  
ANNEX 11 ................................ ................................ ................................ .................  118  
ANNEX 12 ................................ ................................ ................................ .................  121  
ANNEX 13 ................................ ................................ ................................ .................  128  
ANNEX 14................................ ................................ ................................ .................  129  
ANNEX 15 ................................ ................................ ................................ .................  131  
ANNEX 16 ................................ ................................ ................................ .................  132  
ANNEX 17 ................................ ................................ ................................ .................  134  
ANNEX 18 ................................ ................................ ................................ .................  135  
ANNEX 19 ................................ ................................ ................................ .................  144  
ANNEX 20 ................................ ................................ ................................ .................  148  
ANNEX 21 ................................ ................................ ................................ .................  152  
ANNEX 22 ................................ ................................ ................................ .................  155  
ANNEX 23 ................................ ................................ ................................ .................  159  
ANNEX 24 ................................ ................................ ................................ .................  160  
ANNEX 25 ................................ ................................ ................................ .................  174  
ANNEX 26 ................................ ................................ ................................ .................  175  
ANNEX 27 ................................ ................................ ................................ .................  177  
APPENDIX  ................................ ................................ ................................ ................  178  
 
 
 
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  I. INTRODUCTION  
1. The Government of Timor -Leste  applied for accession to the World Trade Organization in 
November  2016 (document WT/ACC/ TLS/1). At its meeting on 7 December  2016, the General 
Council established a Working Party to examine the application of the Government of Timor -Leste  
to accede to the World Trade Organization, under Article  XII of the Marrakesh Agreement 
establishing the WTO. The terms of reference and the membe rship of the Working Party are 
reproduced in document WT/ACC/ TLS/2/Rev. 6.  
2. The Working Party met on 1 October  2020, on 29 July 2021 , on 29 April 2022  and on 
30 September 2022  under the Chairmanship of H.E.  Mr Rui Macieira  (Portugal ).  
DOCUMENTATION PROVIDE D 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Timor -Leste  (WT/ACC/TLS/3 and WT/ACC/TLS/3/Corr.1), the questions 
submitted by Members on the foreign trade regime of Timor -Leste, toget her with the replies thereto, 
and other information provided by the authorities of Timor -Leste (WT/ACC/TLS/4 , WT/ACC/TLS/8 , 
WT/ACC/TLS/10, WT/ACC/TLS/11, WT/ACC/TLS/12, WT/ACC/TLS/13,  WT/ACC/TLS/13/Rev. 2, 
WT/ACC/TLS/14, WT/ACC/TLS/16 , WT/ACC/TLS/20 , WT/ACC/TLS/24  and WT/ACC/TLS/28 ), 
including the legislative texts and other documentation listed in ANNEX  1.  
INTRODUCTORY STATEMENTS  
4. The representative of Timor -Leste  said that  Timor -Leste assigned priority to WTO 
membership, as it would help to leverage the on -going improvements in its infrastructure, human 
capital and administrative capacity, to accelerate growth and economic diversification. Timor -Leste 
was committed to WTO m embership. There was a strong political will, across all partisan lines, in 
support of implementation of domestic structural, legislative and policy reforms needed to comply 
with its future WTO commitments. This commitment was supported by the objectives o f 
Timor -Leste's domestic economic and trade policy .  
5. Members welcomed Timor -Leste 's application to accede to the WTO . Recalling the 2002/2012 
Guidelines on LDC Accessions, they pledged to work with Timor -Leste towards this goal. Members 
acknowledged Timor -Leste's efforts to achieve compliance with WTO rules and expressed their 
readiness to provide assistance.  
6. The Working Party reviewed the economic policies and foreign trade regime of Timor -Leste  
and the possible terms of a draft Protocol of Accession to th e WTO. The views expressed by Members 
of the Working Party on the various aspects of Timor -Leste 's foreign trade regime and on the terms 
and conditions of Timor -Leste 's accession to the WTO are summarized below in  paragraph s 7 to [...].  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  II. ECONOMIC POLICIES  
7. The representative of Timor -Leste informed that Timor -Leste was a low income 
least-developed country (LDC), with a total GDP of US$ 2,017.9 million (in 2019) , US$ 1, 237 million 
(in 2020)  and US$ 1,295 (in 2021) . From 2008 onwards, it had not been dependent on development 
assistance. However, the economy remained fragile and dependent on oil and gas revenues. 
In 2022, Timor -Leste's non -oil GDP was estimate d to grow by 3%, following a contraction of -7.9% 
in 2020 , and thereafter an increase by 3.4% in 2021 . Fiscal policy remained the key driver of 
economic activity, private investment remained low  (however, it increased from 4% to 12.2% of 
GDP, in 2020 -2021), and Timor -Leste's domestic market remained poorly integrated. Since 
independence, the Government had made major improvements to its infrastructure, however, 
internal trade costs remained high and economic activity remained concentrated in the capital. 
Timor-Leste's main trade and economic indicators are provided in ANNEX 2(A) to ANNEX 2(C). 
8. The country's vision  was set out in the Strategic Development Plan 2011 – 2030 (SDP), which 
envisioned transformation from a low -income to an upper  middle -income economy  with a  healthy, 
well-educated and safe population by 2030 . The SDP recognize d that achieving economic growth 
would require diversification of the economy. The priority sectors to drive economic diversification 
were downstream petroleum sector, agriculture, tourism, fisheries, light manufacturing and mining. 
Attraction of private investment  was key to economic growth. The goal was to have a private 
sector -led market economy by 2030.  The Government was working to improve its perception 
indicators and global position.  
9. The foundations  for the economic reform and growth strategy had been  laid out in 
the Economic Reform and Growth Guides (GRFE)  that set forth guidelines for build ing a free and 
predictable market and achieving compliance with the ASEAN, WTO, World Bank  (WB) and Asian 
Development Bank (ADB) standards and guidelines. The reforms had focus ed, namely, on: 
(i) creation of an easy, secure and transparent regulatory framework for the operation of business ; 
(ii) elimination of excessive bureaucracies that raise d costs for doing business ; (iii) streamlin ing 
process es for imports and exports ; (iv) strengthen ing of the government  institutions and 
the establishment of effective service delivery systems to the bu siness sectors; (v) development of 
the infrastructure to support the private sector, such as electrical power production and distribution, 
roads, ports and airports, water, sanitation and hygiene networks; and, (v i) identification of specific 
measures to d evelop the priority economic sectors.  The reform s sought  to use Timor -Leste's oil and 
gas re venues  to finance economic diversification.  The Guides had been in force until 2018.   
10. The COVID -19 pandemic had worsened the economic and trade performance of Timor -Leste 
resulting in a decline in GDP, caused by the reduction in the performance of economic agents and 
the contraction of supply and demand, consequences of social distancing, border closing, closing 
companies and lack of investment. In August 2020, the G overnment had adopted the  Economic 
Recovery Plan  for 2020 -2023 (ERP)  with the aim to respond to the se negative impacts . The Plan  
defined a set of short -, medium - and long -term recovery measures, includin g temporary support to 
families and companies, measures to protect employment and guarantee income for families and WT/ACC/SPEC/TLS/5/Rev.1  
 
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  companies in difficulty, seeking to minimize the stagnation of ec onomic activities , contribute to  
economic transformation, creat e more decent jobs, consolidat e social programs for public 
investment and to chang e economic  structure with the objective to contribute to Timor -Leste 's 
economic growth . In 2020-2022, the Gover nment had implemented four short -term ERP measures: 
(i) universal Basic Basket program, (ii) recovery subsidies for the private sector, (iii) contributory 
subsidies for the private sector, and (iv) special support for informal workers.  
11. A Member asked for  examples on how the Gover nment had improved the business climate . 
In response, the representative of Timor -Leste informed that, for ease of Doing Business, 
Timor -Leste ranked 181st out of 190 countries covered by the World Bank's Doing Business indicators 
for 2020.  He referred to activities carried out in 2019 -2020 aiming at the improvement of 
the institutional business climate under Component No. 5 of the Public Administration Refo rm 
Program 2019 -2023 approved by the Government Resolution No. 38/2020 of 23 September 2020 
(hereinafter referred to as PARP) on bettering the Doing Business ranking and on improving 
the business climate in general. With the technical assistance of the Int ernational Financ e 
Corporation (IFC), the Government had put together a Working Group to consolidate the reform in 
that field  and developed an Action Plan for reforms aimed to simplify activity licensing procedures. 
Developments  with respect to specific Doing Business indicators are contained in ANNEX 3.  
12. He further informed about the adoption of  Government Resolution No. 34/2022 of 
16 November 2022 on "Private Sector Support". In th is Resolution, the Government had  recognised 
the need to establish a policy and strategy  needed to to implement the legislative and policy 
requirements  necessary for the development of  the private sector in Timor -Leste. The objective of 
this policy and strategy was to contribute to the economic growth and prosperity by: (i) increasing  
the number of businesses operating in Timor -Leste; (ii) increasing  private sector investment; 
(iii) increasing  opportunities for employment in the private  sector, including for Timorese youth; and 
(iv) enhancing  the availability of credit provided by financial institutions. This policy and strategy 
focus ed on prioritising reforms benefit ting the private sec tor, addressing the barriers to private 
sector development and providing incentives and support for  the establishment and operation of  
businesses . 
13. A Member further requested to provide information on the Government's efforts to combat 
corruption. The repre sentative of Timor -Leste informed that, o n the Transparency International 
Corruption Index for 2021, Timor -Leste has made good progress overtime and had been ranked 
82nd out of 180 countries with an increase of eight score points  since 2012.  He outlined th e legislative 
framework in this area that included: the Penal Code (Decree -Law No. 19/2009 of 8  April 2009), 
Law No. 3/2004 of 14 April 2004 on "Political Parties ", Law No. 2/2009 of 6 May 2009 on "Protection 
of Witnesses ", Resolution by the National Parli ament No. 25/2008 of 10  December  2008 on 
the ratification of UNCAC, Resolution No. 12/2019 of 13 March 2009 on the "Code of Conduct of 
Members of the Government " and, most recently, Law No. 7/2020 of 26 August 2020 on 
"Anti-Corruption (Measures to Prevent and Combat against Corruption) ". The provisions of these 
acts were detailed in ANNEX 4. WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Monetary and fiscal polic y 
14. The representative of the Government of Timor -Leste info rmed that r elevant laws with respect 
to the monetary and fiscal policy and the free flow of capital in Timor -Leste were: (i)  Decree -Law 
No. 20/2003 of 13 November 2003  on the Official Currency in Timor -Leste; (ii) Public Instruction 
No. 4/2009  of 2 Septemb er 2009 on Importation and Exportatio n of Cash; (iii) Law No.  5/2011 of 
15 June 2011  on the Central Bank of Timor -Leste (CBTL) Framework; (iv) Law No.  10/2011 of 
14 September 2011  which approved the Civil Code (CC); (v) Law No. 17/2011  of 28 December 201 1, 
as amended by Law No. 4/2013  of 14  August  2013, on the Anti -Money Laundering and Counter 
Financing of Terrorism; and , (vi) CBTL Regulation No.  1/2013  of 6 September 2013 on the Minting 
and Use of C oins. 
15. According to Decree -Law No. 20/2003  and Article 79.1 of Law No. 5/2011, the official currency 
of Timor -Leste was US Dollar. In addition to t he US dollar banknotes , the centavos metallic coins  of 
1, 5, 10, 25, 50, 100 and 200 centavos circulated  in Timor -Leste  as the substitute to the  US cents . 
As specified by Decree Law No. 20/2003, these  coins, which  were issued  by the Central Bank of 
Timor -Leste  (CBTL), could  become the legal tender and ha d the authenticity to be utilized in any 
public or private transactions. However, Timor -Leste still maintain ed the US Dollar as its sole legal 
tender because the centavos coins  were only usable within the country.  
16. Consequently, Timor -Leste d id not have its own specific currency policy . It was  not yet 
entrusted with the main instruments aimed at controlling the supply of money, inflation rate, or 
interest rate in order to ensure price stability. However, the existing regime was viewed as transitory. 
As per Ar ticles 79.1 and 79.3 of Law No. 5/2011, US Dollar  had a mandatory legal tender status in 
Timor -Leste  until a specific currency regime was defined and implemented pursuant to 
the Constitution. As of 202 2, there was no indication of when Timor -Leste might ad opt its own 
currency.  The Government  had entrusted the CBTL to undertake research to study such a possibility.  
17. Once a specific currency regime was developed in Timor -Leste, the powers and responsibilities 
with respect to the definition and implementation  of the monetary policy and the  issuance of the 
country 's own currency w ould be exclusively entrusted to the CBTL  (Article 143 of the Constitution) . 
The CBTL was an autonomous entity  independent from the Government  and the National Parliament. 
Such independence and autonom y in the performance of its duties were assured, inter alia , by the 
fact that the Governor, Vice -Governors an d non-executive members of the B oard of Directors of the 
CBTL could not, as a rule, be removed from office, except under specific grounds as provided for in 
the relevant legislation  (Articles 49 and 50 of Law No. 5/2011) . 
18. The CBTL 's portfolio could  include t he following foreign assets: (i) gold or other precious 
metals held under the Bank 's custody, including account balances representing gold and other 
precious metals; (ii) banknotes and coins denominated in freely convertible foreign currencies held 
or unde r the Bank 's custody; (iii) cash or short -term interbank balances and deposits denominated 
in freely convertible foreign currencies, and held in the CBTL 's accounts, on the books of foreign 
central banks or international financial institutions; (iv) readily-negotiable debt securities issued or WT/ACC/SPEC/TLS/5/Rev.1  
 
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  accredited by foreign Government s, central banks, or international financial institutions; (v) bonds 
with international financial institutions resulting from repurchase, sale and purchase agreements, 
and securities le nding agreements in the case of the debt securities mentioned in (iv);  (vi) special 
drawing rights held in Timor -Leste 's account with the International Monetary Fund (IMF); and , 
(vii) Timor -Leste 's reserve position with the IMF.  
19. Due to the limitations on monetary policy, aggregate macroeconomic balance primarily 
depended on fiscal policy. Government expenditure was mainly funded by offshore petroleum 
production. Consequently, Timor -Leste had minim al government debt.  Since independence, 
the Government had maintained macroeconomic stability with inflation briefly exceeding 10% in 
2011 and 2012, but generally kept to single digits. As of June 2022 , the inflation in Timor -Leste was 
8.0%, on average. Me anwhile, the Government 's estimated inflation range was 4% -6%, as set out 
in the Government 's Strategic Development Plan.  
20. Timor -Leste's public finance was highly dependent on revenues from the oil and gas sector . 
It corresponded to around 74% of the 2021 State Budget (US$ 1.88 billion).  In this light,  in addition  
to the  ongoing economic reform, the Government was implementing a  fiscal reform , consisting of 
two major and complementary interventions, aimed at : (i) generating more financial resources in 
the framework of a modern tax system, and (ii) having a more balanced budget. To that end, current 
sources of revenue were being reassessed, along with means to reform expenditure.  Specifically, to 
improve revenue collection , the Government had modernized the  legislation by  revising the Customs 
Code in 2017 and was planning to revise  the Taxes and Duties Act and to introduce  the Value Added 
Tax (VAT) , as two main components of the fiscal reform  (as described in sections "Trad e facilitation" 
and "Application of internal taxes to imports" ). The development  of the new policies  follow ed 
the standards and guidelines of the WTO and ASEAN, as if Timor -Leste was a member of th ese 
organizations.  All legislation went  through a public consultation process with the  involvement of 
the business community, civil society and other stakeholders.  As a result of this reform, 
the Government expect ed to develop and implement  an improved tax collection and ad ministration 
system, supported by modern information technology (IT), improved  service delivery culture,  
stronger integrity of government officials, and an enhanced accountability system.  
21. He further informed that  in December 2022  his Government had endorsed  the Public 
Financial Management  (PFM)  Reform Strategy for 2022 -2027, which  include d the roadmap for 
fiscal reform. The new PFM Reform Strategy focus ed on six areas: (i) strengthening fiscal policy; 
(ii) enhancing resource mobili zation; (iii) enhancing policy -based planning and program -based 
budgeting; (iv) strengthening public spending; (v)  strengthening accounting and internal audit;  
and (vi) strengthening external scrutiny and audit . The Strategy  also reflect ed the sustained 
commitment  by the Government  to a modern state -building vision and institutional development 
aligned with international standards . WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Foreign  exchange and payment system  
22. The representative of Timor -Leste informed that the foreign exchange and payment system 
was controlled by t he Central Bank  of Timor -Leste (CBTL), which  had powers and the responsibilities 
to define, develop, and adopt applicable foreign exchange rules in the country. In performing its 
duties as the foreign exchange authority, the CBTL was entitled to carry out foreign exchange 
transactions and hold and manag e official foreign currenc y reserves . 
23. Prices of all goods and services, and the monetary consideration in respect of all other 
transactions, could  be denominated in units of the official currency of Timor -Leste, i.e., all payments 
arising from or in connec tion with any contract executed in Timor -Leste, including : (i) payments in 
connection with any debt or obligation, and (ii) payments owed to or by any public authority in 
Timor -Leste, had to  be made in US Dollars. This d id not mean that the parties to a gi ven contract 
were prevented from denominating the relevant transaction in a foreign currency. However, in such 
a scenario, the debtor could  always make such payments in local currency at the exchange rate of 
the day on which it was due, except if an expres s waiver to that possibility was included in the 
contract . 
24. Currently  there were no foreign exchange restrictions in force in Timor -Leste, except on 
the transportation of physical currency to and from the country.  Under the cur rent regulations , Public 
Instruction No. 4/2017 of 28 March 2017 on "Importation and Exportation of Cash" , issued by  
the CBTL, both the importation of cash into Timor -Leste and the exportation of cash out of 
Timor -Leste in an amount exceeding US$  20,000, or its equivalent in foreign currency, require d 
the CBTL's prior authorization. The Public Instruction further state d that if the relevant amount of 
cash being imported and/or exported exceed ed US$ 5,000, or its equivalent in other  currency, but 
did not exceed US $ 20,000, or its equivalent in other  currency, it had to  be declared before 
the customs officer at the port of arrival and /or departure.  Further, no cash import ation or 
export ation in excess of US$ 150,000 , or its equivalent in other  currency,  was permitte d except : 
(i) when  carried out by a bank or financial institution duly licensed to operate in Timor -Leste ; and 
(ii) in exceptional situations, where the restriction on the import or export of cash in excess of 
US$ 150,000 was likely to cause serious injury, e.g. in  situations of medical emergency , subject to 
authorization by the CBTL . There were no similar restrictions  in respect of wire transfer of funds 
(irrespective of the currency and amounts in question) into or from bank accounts opened in 
Timor -Leste, with the exception  of Know Your Customer and anti -money -laundering rules.  
25. With respect to the procedure applicabl e for the CBTL's authorization s, the representative of 
Timor -Leste further specified that a pplications  and accompanying documents (applicant's ID, proof 
of ownership of cash, etc.)  had to  be submitted to the CBTL at least five working days before the 
propo sed import/export date. Urgent applications could  be submitted in less than five working days. 
Following fees had to  be paid to the CBTL when an application was submitted: (i) for regular  
applications: US$ 100; (ii) for urgent applications: US$ 300.  Applic ations had to be forwarded to:  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Central Bank of Timor -Leste  
Financial System Supervision Department  
Licensing and Regulation Division  
Address:  avenida Xavier do Amaral 9, Dili, Timor -Leste  
E-mail:   dsflicensing@bancocentral.tl  
26. The CBTL took decision on authorization before the proposed cash importation/exportation 
date. For urgent applications for authorizations for exportation of cash, decisions had to  be issued 
48 hours prior to exportation, for import – 72 hours prior to importation. If C BTL decision was not 
issued, an application was deemed to be rejected . The a uthorizations were valid for a single cash 
import or export and have a maximum validity of 20 working days from the date of issuance.  
27. Law No. 17/2011 of 28 December 2011 on Anti-Money Laundering and Counter -Terrorism 
Financing (AML -CTF), as amended by Law No. 5 /2013  of 14 August 2013,  was based on some of 
the fundamental principles and rules of the European model, notably those contemplated by 
EU Directives No. 2005/60/EC and No. 20 06/70/EC.  Anti-money -laundering rules ha d an impact on 
flows of payments and transfer transactions. In fact , financial institutions were required to refrain 
from performing transactions (including payments and transfers), regardless of the amount involved, 
that they suspect ed to be related to money laundering or financing of terrorism and were to  report 
their suspicions to the Financial Information Unit, which had been  created within the CBTL. When 
financial institutions (and other entities subject  to the AML -CTF) carr ied out one -off transactions in 
an amou nt equal to or greater than US$  10,000, in one or more apparently linked transactions, they 
were required to comply with specific identification duties with respect to their customers and 
benefici al owners of the underlying transaction. The CBTL had developed further guidance on 
Customer Identification, Record Keeping and Transaction Report as issued in Public Instruction  
No. 5/2017 of 25 August 2017 .  
- Investment regime  
28. Timor -Leste 's major object ives on investment were to promote and encourage both domestic 
and foreign investment and to increase the role of the private sector in the country 's economic 
development  and diversification , namely by the creation of employment opportunities  and 
stimulation of export growth . The system of investment attraction and facilitation was a key area for 
ongoing reform. Private Investment Law  No. 15/2017 of 23 August 2017  had superseded Private 
Investment Law s No. 14/2011 of 28 September  2011 as the main s tatute governing investment 
operations by both domestic and foreign investors  in the country. This Law had replaced an ex-ante 
screening process for FDIs with sectoral licensing and a limited negative  investment  list. Government 
Decree No.  2/2018 detailed the regulation and procedures for private investments in Timor -Leste.  
29. The Law was complemented by an Investment Reform Map (IRM)  developed by the World 
Bank in 2016 -2017,  which was a non -binding policy document outlining promotion and attraction of  
FDIs in specific sectors of the economy.  The IRM suggest ed the Government of Timor -Leste to target 
the following priority sectors  that could be profitable to investors and had a significant development 
impact : (i) sustainable tourism  (religious and pilgrim age tourism, cultural and historical tourism, eco 
and marine tourism, agri -tourism and community -based tourism, adventure and sport tourism ); WT/ACC/SPEC/TLS/5/Rev.1  
 
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  (ii) strategic infrastructure  (roads, airport, seaport (connectivity); transport and communication 
(accessibility) ; energy such as renewable energy (growth) ); (iii) construction materials  (cement 
manufacturing, building ); (iv) agricultural -based industries  (industrial crops (e.g. coffee, coconut, 
candlenut, maize, rice, cocoa, vanilla); forestry (e.g. sandalwood, teak wood, bamboo); livestock 
(cattle, goat, pig, chicken) ); and ( v) agricultural crops  (horticulture (e.g. vegetables (broccoli, 
cauliflower); fruits (banana, mango, avocado, tangerine); legumes (red beans, mungbeans, 
soybeans, peanuts; spices – peppers, clove s)). Short-term reforms were needed to develop those 
sectors. The IRM also suggest ed to target the sectors that could be beneficial for Timor -Leste but 
were not yet a ttractive for investors: ( i) fisheries ; (ii) livestock ; (iii) downstream petrochemicals ; 
and ( iv) garments. Medium and long -term reforms were needed  in these sectors . TradeInvest 
Timor -Leste, which was the country's Investment  and Export  Promotion Agency, ha d been 
re-focused to concentrate on the se sectors . The Government was committed to formalize the IRM 
with necessary revision to accommodate the current situation  and investment environment  in 
Timor -Leste.  The revision could include provision of information on subsectors under each targeted 
priority sector and investment and export trends in Timor -Leste. As of February  2023, it was 
expected that the revision would be made in the first half of 2023. 
30. Regarding TradeInvest  Timor -Leste , he clarified that it acted as  the Government 's 
one-stop-shop agency for private investors. Re-established by  Decree -Law No. 45/2015 of 
30 December 2015,  as last amended by Decree -Law No. 58/2022 of 24 August 2022,  the Agency 's 
main role was to promote, facilitate, monitor and advocate for  private investment s and exports , by 
centralizing all administrative procedures that must be followed by investors who wished to enjoy 
the tax and customs incentives set out in the Private Investment Law . TradeInvest Timor -Leste 
website ( http://www.tradeinvest.tl/ ) contained general information about Timor -Leste's investment 
framework and regulations, as well as the latest investment  and export  news and descriptions of 
investment and export opportunities by economic sector and geographical location.  
31. He further informed that among the  investors'  rights and guarantees  enshrined in the Private 
Investment Law were: (i) fair and equitable treatment; (ii) access to courts; (iii) access to 
information ; (iv) land ownership and land use; (v) guarantee against expropriation; (vi) right to 
import and export; (vii) right to access credit; (viii) overseas transfer of fund; (ix) i ntellectual 
property right s; (x) secrecy (respect for professional, banking and commercial secrecy); 
(xi) confidentiality; and (xii) hiring of foreign workers and collaborators . In response to Member's 
question, the representative of Timor -Leste added that  the Law specified that all investors, 
regardless of nationality, had the same rights and obligations and enjoyed the same level of 
protection. An exception related to the right to ownership of the land, which was regulated by 
the Constitution.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  32. Specificall y, Article 10.3 of the Law provided that all investors enjoyed equal opportunities for 
accessing investment  incentives.  The fiscal (tax and customs) and non -fiscal benefits provided to 
investors under the Private Investment Law  (Articles 29 and 30)  include d: (i) 100% income tax 
exemption for a period of between 5  and 10 years, depending on the location of the  investment; 
(ii) for the purpose of determining the tax base, up to 100% of expenses incurred with respect to 
the constru ction and repair of road infrastructure not associated with the exercise of taxable business 
activities, could  be considered as costs; (iii) 100% sales tax exemption for a period between 5 to 10 
years, depending on the location of the investment, in relati on to all capital goods and equipment 
used in the construction or management of the investment or re -investment project; (iv) 100% 
services tax exemption, for a period between 5 to 10 years, depending on the location of the 
investment, in relation to devel opments geared towards the provisions of specific services; (v)  100% 
customs dut y exemption on imports for a period between 5 to 10 years, depending on the  location 
of the investment, in relation to all capital goods and equipment used in the construction or 
management of the investment re -investment project; (vi) guarantee of a minimum five work visas 
for workers or collaborators qualified for supervisory, directing or technical functions as appropriate 
to the investment project; and (vii) opportunity to l ease state/private land for a  maximum period of 
50 years, renewable for a period of 25 up to 100 years . The benefits were provided based on zones  
(see Table  1). 
Table  1. Special benefits based on zones  
Zone  Tax exemption period  
Zone A  5 years for the municipality of Dili, corresponding to the administrative posts of Cristo Rei, 
Dom Aleixo, Na'i Feto and Vera Cruz  
Zone B  8 years for areas corresponding to those located outside the boundaries of the urban area of 
the municipality of Dili  
Zone C  10 years for special zones Oe -Cusse Ambeno and Ataúro  
33. Further, he  clarified that, in line with  Article 34 of the Law and  Government  Decree 
No. 2/2018 , the incentives could be granted to investments with a minimum value of US $ 50,000 
(for national investors ); US$ 500,000 (for foreign investors ); and US$ 250,000 (for joint ventures 
or one of the legal forms of partnership between foreign and national investors in which the latter 
controlled at least 75% of the share capital of the commercial societies involved). Eligible  
investments and re -investments had to be carried out in the territory of Timo r-Leste and to 
contribute  to the socio -economic development of Timor -Leste  (i.e., to contribute to job creation and 
knowledge and technology transfer ). The incentives did not apply to investments  made by the State 
or by public corporations, including i nvestments made by legal persons where  more than 50% of 
their capital was held by the State or by a public corporation (Article 2.3 of the Law).  Responding to 
Member 's question, the representative of Timor -Leste confirmed that these investment incentives 
were consistent with the WTO Agreement on Trade -Related Investment Measures  and were  not 
conditioned on the use of domestically produced products . WT/ACC/SPEC/TLS/5/Rev.1  
 
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  34. The regulatory framework included the provision of incentive certificates (Declarations of 
Benefits and Special Investment Agreement) and support to investors by granting authorizations, 
visas, permits and registration , as well as facilitation services provided by TradeInvest.  To enjoy 
the incentives, investors had to receive an incentive certificate from TradeInvest. The following 
procedure had to be followed: (i) an investor had to submit an application to TradeInve st with other 
legal document s and an investment plan; (ii) TradeInvest carr ied out technical analysis of document s 
and ensur ed that  all necessary documentation was provided ; (iii) the document ation was submitted 
to relevant ministries for appraisal; (iv) ministries could provide technical comments within 
6 working days for reflec tion in TradeInvest 's report; (v) the report was submitted to Coordinating 
Minister for Economic Affairs as supervisory body of TradeInvest; and (vi) decision for granting of 
the investment incentive certificate was made  by the Coordinating Minister for Ec onomic Affairs.  
He informed that fees that had been set under  the previous Private Investment Law (US$ 500 for 
Timorese nationals and US$ 2,000 for foreign investors), had been abolished with the entry into 
force of Law No. 15/2017.  No fee was charged for the services of promotion and facilitation of 
investment rendered, as well as for processing the application for granting declaration of benefits 
and negotiation of a special investment agreement.  
35. He added that, while Timor -Leste was committed to open its economy to foreign investors , it 
had to maintain a number of restrictions, limitations or prohibitions to FDI entry. The Government 
had adopted policies that aimed to steer FDI into sectors, municipalities and investment projects 
that were seen as particul arly beneficial to Timor -Leste 's economy development and diversification. 
Annex 5 provides a summary of FDI regulations in Timor -Leste.  
36. He further informed that projects of national importance, due to their economic, social, 
technological and environmental impact could be subject to a special investment agreement regime 
to be negotiated with the investor and under the special conditions approved by the Government. 
Article 10.4 of the Private Investment Law provided exc eptions from the regime described above for 
investments which, due to their nature or size, were the subject of special agreements, 
the investments of nationals which may receive support or more favourable treatment from 
the State, and favour investments w hich contribute to national development priorities ( defined 
through the National Strategic Development Plan 2011 -2030 (NSDP)) , in particular in special 
economic zones and special industrial areas, as defined in the 2017 Timor -Leste Investment Guide 
(see Se ction "Free Zones, Special Economic Areas "). The 2017 Investment Guide would be revised 
by TradeInvest to accommodate current situation, in the first half of 2023 . 
37. He further clarified that t here were restrictions on investment  in several sectors  (e.g., postal 
services, public communications  (which included journalism activities (research, collection and 
treatment of information to public), and establishment of news agencies) , weapon productions and 
distribution, or in zones that could affect protec ted areas ) which were primarily reserved for 
the State. In response to a question from a Member, he added that the Private Investment Law 
allowed for  investments in any economic activity, provided  that they were  permitted by  sectoral  law, 
without requiring a  prior authorization in addition to the procedures established by law (Article 9.1), WT/ACC/SPEC/TLS/5/Rev.1  
 
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  with the exception of economic activities expressly reserved for the exclusive ownership or 
exploitation of the State (Article 9.2). In line with Article 9.3 of  the Law and the relevant sectoral 
legislation, TradeInvest Timor -Leste had drawn up the list of prohibited or restricted activities and 
sectors ( "Negative List of Investments ") following discussions with the Chamber of Commerce and 
Industry of Timor -Leste  (CCI-TL), investors and other economic operators and stakeholders. This list 
has been provided to the Working Party for consideration. The negative list distinguished between 
two types of sectors, namely: (i) prohibited/ restricted sectors where investment  activity was 
prohibited/restricted for both domestic and foreign investors; and (ii) conditional sectors where 
investment activity was conditional for foreign investors ' participation.  The list was an evolving 
document, i.e., at any time sectors could be deleted from or added to the list based on relevant 
legislation.  He further informed that, as per the latest revision of the list, published on 19 August 
2022, several sectors had been removed from the list.  These were: activities related to arms and 
ammun ition production and distribution (which were no longer reserved for the State); publishing 
activities for books, periodicals, newspapers and other publishing activities and air carrier operator 
activities (which were no longer conditional for foreign inve stors' participation).  The latest summary 
of sectorial classification in the negative list can be seen in Table 2. 
Table 2. Summary of the sectorial classification in the Negative List  
Prohibited/restricted for all investors  
(5 sectors)  Conditional for foreign investors ' participa tion 
(5 sectors)  
1. Criminal activities;  
2. Activities related to offensive of traditional 
customs;  
3. Activities related to environmental protection 
areas;  
4. Postal and courier services;  
5. Funeral service activities.  1. Activities of public communication services and other 
media services;  
2. Urban and suburban passenger land transport 
activities and other passenger land transport activities;  
3. Air transport activities;  
4. Gambling and other recreational activities;  
5. Insurance activity.  
38. In response to a question from a Member, the representative of Timor -Leste elaborated that 
the inclusion of activities related to environmental protection areas and postal and courier services 
in the list did not preclude the provision of private environment al services activities, such as 
environmental consulting services or monitoring environmental conditions for private customers, or 
the provision of delivery services, such as express delivery, that operated independently of 
Timor -Leste's national post .  
39. He further added that in the rare cases of addition of new sectors in the list, (i) the participation 
by foreign investors in a sector added as prohibited/restricted for all investors was to stop; or (ii)  the 
participation by foreign investors in a sector ad ded as conditional to foreign investors was to stop 
until the foreign investors fulfil the requisites established in the law for their participation.  Changes 
in the list were published by TradeInvest Timor -Leste at its official website. While there was no 
advance notice, as legislative changes took time to enter into force, t he Government could engage 
in a dialogue with foreign investors to find an understanding between all parties involved.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  40. Prospection , exploration, and production of oi l and gas, mining activities,  and public private 
partnerships were also subject to specific legal regimes . Thus, p rospection, exploration and 
production of oil and gas were subject to the  rules provided for in Law No. 3/ 2005 on "Petroleum 
Activities ", which set forth  the legal regime for all petroleum activities undertaken in the territory of 
Timor -Leste. The  Law established a regulatory regime to allow petroleum companies to develop 
petroleum resources in the national territory, with the objective to provi de benefits to Timor -Leste 
and its people and to ensure stability and transparency in regulating the development of petroleum 
resources. Petroleum contracts t ook the form of production -sharing contracts. Participation of 
the State in the oil operations was subject to the terms agreed upon with the selected companies in 
the respective production sharing contracts.  
41. Investment in mining activities, including licensing of extractive minerals (mines and quarries) 
for medium and large mineral extractive activities were subject to a special legal framework defined 
in Ministerial Diploma No. 64/2016 of 16 November 2016 with its objective to regulate the  use of 
Ornamental Stones, Construction Materials. The legal regime did not apply to small -scale activitie s 
undertaken manually by small family economic units, in which the amount of extraction did not 
exceed 30 tonnes per month .  
42. The Mining Code (Law No. 12/2021) had been  adopted on 30 June 2021 and entered into 
force in January 2022 . The  Code was a comprehensive law that regulate d all mining activities 
including recognition, prospecting, evaluation, development, and exploitation, processing, refining 
and trading. It regula ted administrative procedures for gra nting licen ces and authorizations, as well 
as norms to define concession areas, rights, obligations and rules of inspection and supervision. 
It cover ed all phases of mining activities and include d provisions on health a nd safety, environmental 
protection, inclusion of local content, the labour schemes applicable and penalties, mining registry 
as well as transparency and good  practices. Under the Code , right or permit was awarded following 
a competitive tender procedure ( general rule) or direct award (in exceptional cases). Government 
could proceed with the direct award in the following cases (Article 11.1 and 11.2): (i) the area to be 
released was considered as a new area delimitation with insufficient information and data; (ii) the 
public tender has been deserted; (iii) health, safety and environmental risks are associated with the 
mining area; (iv) for strategic minerals; (v) in situations of di rect award to the national mining 
company; and, (vi) artisanal mining permits are always assigned by direct contract.  The Code w ould 
promote and facilitate the discovery and exploitation of mineral resources in order to promote 
economic and social benefits  to the country . 
43. He added that i nvestment in Timor -Leste could  also be pursued through a Public Private 
Partnership ( PPP). The Legal Framework for PPPs had been  approved by Decree  Law No. 42/2012 of 
7 September 2012, as amended by Decree  Law No. 2/2014 of 15 January 2014. The Government 
ensure d participation of the private sector in building public infrastructure in the country on 
the grounds of public tender, transparency and fair competition.  PPP contracts were allowed for 
design,  construction , execution , operation and maintenance  of infrastructure. The Law regulat ed 
the implementation of PPPs, as well as the approval of PPP procurement procedures in accordance WT/ACC/SPEC/TLS/5/Rev.1  
 
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  with the respective project cycle ( which  include d the following phases: Initial Phase , Viability Phase, 
Procurement and Negotiation Phase, and Implementation and Operation Phase).  
44. Responding to Member's  request, the representative of Timor -Leste confirmed that his 
Government would be ready to join the WTO Investment Facilitation for Develo pment Agreement 
when it has been concluded . 
- State ownership and privatisation  
45. The representative of Timor -Leste informed about the following state -owned enterprises  
(SOEs)  that were in place in Timor -Leste: (i) Public Company for Administration of Airports and Air 
Navigation of Timor -Leste (ANATL, E.P .); (ii) Timor -Leste 's National Oil Company, TIMOR GAP; 
(iii) Radio and Television of Timor -Leste, Public Enterprise (RTTL, E.P.); (iv) Public Electricity 
Company of Timor -Leste (EDTL,  E.P.); (v) public enterprise for water supply and sanitation of 
Timor -Leste  – BEE of Timor -Leste (BTL, E.P) ; (vi) Mining Company of Timor -Leste  (CMTL, S.A.); and 
(vii) Company for the Management of Industrial Parks (GESPIN, S.A., established in September 
2022) . Further information on these SOEs is provided in ANNEX  6.  
46. The SOEs and private sector companies competed on an equal  level playing field. The State 
did not intervene or restrain competition in the sectors where SOEs operated.  Further, all SOEs and 
privat e companies were treated equally in terms of their business operation. SOEs acted in 
accordance with commercial considerations with limited  exceptions  as provided in Decree -Law 
No. 14/2003 of 24 September 2003 on "Public Companies" . Such exceptions include d the need to 
provide essential services below market price or below the cost of production aiming to provide 
social services not economically viable at a given moment. He added that SOEs were not regulated 
in a preferential manner to competing private sec tor firms. Further, in their purchases or sales 
involving either imports or exports, SOEs acted in a manner consistent with the general principles 
of non -discriminatory treatment, like normal commercial entities or private companies.  
47. In response to a quest ion, he also clarified that a ccording to Article 40 of Decree -Law 
No. 14/2003 of 24 September 2003 on "Public Companies", SOEs could be  transform ed into Private 
Limited Liability Companies and/or Joint Stock Compan ies/Corporations. The transformation was 
possible upon authorisation by the entity with the competence to create or establish the SOE 
(i.e., the Council of Ministers or the National Parliam ent). According to Article 6 of the Decree -Law, 
SOEs could also  underwrite shares and thus acquire participation of private sector companies for the 
purposes of establishing a State Invested Enterprises (SIEs), provided that authorization to do so 
was gran ted by the Government. SIEs, or "mixed companies", are private enterprises with the 
participation by the State . 
48. He further informed that the re were currently no Governmental or non -Governmental 
enterprises, including  State Trading Enterprises (STE) , Privat e Enterprises (PE)  or marketing boards, 
with exclusive rights or privileges in export or import operations. In response to Member's question, 
he clarified that there were no  STEs or PEs with exclusive or special rights or privileges in terms of 
financing a s compared to commercial enterprises, whether foreign or domestic. He added that t he WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Government observe d general principles of non -discriminatory treatment for public policies affecting 
imports or exports by private traders. He confirmed that s uch principles w ould continue to be  
observed if STEs were created  in Timor -Leste in response to market needs not met by the private 
sector.   
49. He added that Timor -Leste was yet to develop any policy measures in relation to state trading 
enterprises. He informed that the Government planned  to conduct a thorough review of the public 
policy measures  affecting state trading, which were yet to be developed, aiming  at ensuring 
compliance with Article XVII of the GATT 1994 and the maximum transparency possible in 
notifications  obligations , so as to permit a clear appreciation of the manner of operation of the 
notified enterprises and the effect of their operations on international trade . Referring to  paragraph  
[21] of section "Monetary and Fiscal Policy", he informed that the Government had approved the 
Public Financial Management Reform Strategy for 2022 -2027, in December 2022 . The scope of this 
reform was extended to public enterprises.   
50. [The representative of Timor -Leste confirmed that Timor -Leste  would ensure that all 
State -owned, State -invested, and other enterprises with special or exclusive privileg es would make 
purchases of goods and services, w hich were not intended for governmental use, and sales in 
international trade, based solely on commercial considerations, e.g. price, quality, marketability and 
availability, and that the enterprises of other WTO Members would have an [equal] [ adequate ] 
opportunity in accordance with customary practice to compete for such purchases or sales. In 
addition, Timor -Leste  would not influence, directly or indirectly, commercial decisions on the part of 
State -owned, State invested, and other enterprises with spec ial or exclusive privileges, including on 
the quantity, value or country of origin of any goods purchased or sold, except in a manner consistent 
with the WTO Agreement. The representative of Timor -Leste  confirmed that upon accession Timor -
Leste  would notif y and provide information on the activities of all State -owned, State -invested, and 
other enterprises with special or exclusive privileges in accordance with Article XVII of the General 
Agreement on Tariffs and Trade 1994 and the Understanding on that Arti cle. He further confirmed 
that Timor -Leste would notify any enterprise falling within the scope of Article XVII. The Working 
Party took note of these commitments. ] 
- Pricing  policy  
51. Timor -Leste adopt ed open economic policies aimed at facilitating business i n the country. As a 
young country, Timor -Leste  applied pricing policies  as an interim measure, to safeguard normal 
supply of basic food stuffs at affordable and fair prices for the population. The country import ed 
most of its basic consumption goods from overseas. It was, therefore, crucial for the existing policies 
to prevent price speculation, lack of supply of essential goods, inflationary price rise and abnormal 
increase in prices .  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  52. There were a few legal statu tes aimed at ensuring minimum standards or prices in specific 
sectors, namely: (i) Go vernment Resolution No. 20/2008  of 13 August 2008 on Public Supply of 
Essential Goods, as amended by Decree -Law No. 27/2019 of 27 August 2019 ; (ii) Government 
Decree No. 1 3/2008  of 13 August 2008, which set forth the Rules for Intervention in Public Supply 
and Prices; (iii) Decree -Law No . 29/2011  of 20 July 2011, approving the framework on Fair Prices 
(this statute establishe d the rules applicable to the intervention of the  Government in the pricing of 
certain goods and services deemed es sential to the community); (iv)  Decree -Law No. 28/ 2008 of 
13 August 2008 on "Public Supply of Essential Goods and Management of the Negative Effects of 
Inflation "; (v) Ministry of Tourism, Commerce and Indust ry Ministerial Order No. 6/2008  of 
24 December 2008, which sets forth measures to Stabilize Prices, Fight Inflation and Prevent 
Speculation; (v i) Ministry of Tourism, Commerce and Industry Minist erial Order No. 6/MT CI/III/2011  
of 23 March 2011, concerning the Sale Price and Distribution of Locally Produced Maize; 
(vii) Government Resolut ion No. 13/2012  of 9 May 2012, which set forth the maximum sales margins 
of certain essential goods and measures to fight inflation;  and (vi ii) Ministry of Tourism, Commerce 
and Industry Mini sterial Order No. 1/2013  of 30 January 2013 concerning the Intervention over 
the Public Supply of Rice and Standardization of Prices. The main goal of these statutes was to 
increase social and econ omic justice with respect to basic products and to facilitate access to these 
products through fixing fair prices.  The intervention by the Government was done only in exceptional 
circumstances and was applicable only to certain goods and services that were deemed vital for 
the subsistence of the country 's most vulnerable  families.  Price interventions were removed  
following the conclusion of the exceptional circumstances.  
53. Pursuant  to Decree -Law No. 29/2011 , certain  products intended for local distribution and sale 
were currently subject to different types of price controls. The Government intervention was aimed 
at controlling speculation and mark-up of retail and sales prices in the domestic market at large  for: 
(i) products subject t o a maximum price regime – rice; cooking oils; f ood intended fo r infants up to 
one year of age; cement; iron rod for building; g asoline for motor fuel,  both in wholesale and retail; 
diesel for motor fuel,  both in wholesale and retail; f uel oils ; and, l iquefied petroleum gases; and, 
(ii) products subject to a  monitored price regime – sugar (retail); rice (wholesale and retail); c orn 
(import  and marketing retail stages); c hicken, rooster, hen meat and other offal (import  and 
marketing retail stages); c ement (marketing retail stages); t axis and  chauffeurs driven hired cars; 
urban c ollective transports; i nterurban collective transports; c ookin g oils (wholesale and retail); 
eggs in  their natural state (retail); pasta; s and and stones for the building  and construc tion sectors; 
and, m edication to be specified by the Ministry of Health.  
54. Members asked for further clarification on the minimum price requirements contained in 
the statutes indicated in paragraph [52], the scope of goods covered by such statu te and 
the mechanisms used to maintain the prices above market prices . The representative of Timor -Leste 
responded that there were no polic ies fixing minimum prices (or price floors) in Timor -Leste. 
The minimum price s were fixed by inherent market mechanisms.  The purpose of the statues  was to 
limit maximum prices, pursuant to Decree -Law No. 28/2008 that guaranteed  the population 
the ability to obtain essential goods at sustained or subsidized prices.  Decree -Law No. 29/2011 of WT/ACC/SPEC/TLS/5/Rev.1  
 
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  20 July 2011 on "Fair Price"  determined that t he prices of goods and services sold or supplied could 
be subject to the following regimes: (i) fixing the maximum prices  for retail sales by wholesalers  
and s ales to the final consumer, i.e. to the public; (ii) establishment of marketing margins; 
(iii) contracted prices; (iv) monitored prices; (v) free price s, whenever they were not subject to 
previous regimes .  
55. With respect to the exceptional circumstances in which the Government could intervene to fix 
fair prices, he referred to Article 1.3 of Decree -Law No. 29/2011  that determined the following 
exceptional circumstances:  (i) situations of illicit distortion of market prices through monopolies, 
cartels or collusion for artificial price setting ; (ii) substantial variation of prices with speculative and 
unjustified profit margins given the national and international climate ; (iii) signs of hoarding of basic 
goods ; or (iv) other anomalous situations of market prices which d id not justify or which were not 
within the scope of intervention under the legal regime of public supply. Such circumstances  could 
include, among others, a rise in international food prices, alime ntary emergencies (natural disaster, 
calamity, etc.), market distortions (price speculation etc.) , drops in agricultural crop, etc.  
56. Pursuant to Article 12 of Decree -Law No.  29/2011 the setting of price regimes  was 
the responsibility of the Prime Minister, or whomever he delegates, based on a proposal from 
the Ministry of Tourism, Commerce  and Industry  that defined the scope of goods and services 
subject to price regimes . The establishment of price regimes had to be  announced and published by 
ministerial order, containing a summary of the grounds of intervention, the term of the same, 
the products covered, and the specifications referred to in the present diploma.  The price regimes 
were in force until they were expre ssly superseded and/or replaced by a new ministerial order . 
57. In response to  a Member's question, he elaborated that Decree Law No. 29/2011 listed goods 
and services that were subject to a fixed marketing margin and a monitored price. However, as per 
Article  5.2 of the Decree -Law, these goods and services could be subjected to different price regimes, 
depending on the market conditions.  Following products were subject to monitored prices: (i) sugar 
(retail);  (ii) rice (wholesale and retail);  (iii) corn (impor t and retail);  (iv) c hicken meat (import and 
retail);  (v) cement (retail);  (vi) c ooking oil (wholesale and retail);  (vii) e ggs (retail);  (viii) p asta; 
(ix) s and and stones for the building and construction sectors;  (x) m edication to be specified by 
the Ministry of Health; and  (xi) p ublic transportation services (taxis, rental cars, urban collective 
transport, inter -urban buses).  Table 3 contained the list of products subject to fixed marketing  
margins.   WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Table 3. Products subject to f ixed marketing margins  
 Wholesale  Retail  
Rice with 5%, or more, broken rice  10% 15% 
Rice with 5% more breakage  8% 10% 
Food oils  8% 10% 
Foodstuffs, natural, powdered, preserved or in any form, intended for infants up 
to 1 year of age  8% 10% 
Cement  10% 15% 
Iron rod for civil operation  10% 15% 
Engine fuels, irrespective of the lead content, classified by the Timor -Leste 
Customs Tariff / Combined Nomenclature code 2710.11 at the wholesale and 
retail sale  - - 
Motor diesel, classified by the Timor -Leste Customs Tariff / Combined 
Nomenclature code 2710 19 at the  wholesaler and  
retail sale  - - 
Fuel oils having a lead content exceeding 1%, classified by the Timor -Leste 
Customs Tariff / Combined Nomenclature code 2710 19  - - 
Petroleum gas, classified by the Timor -Leste Customs Tariff / Combined 
Nomenclature code 2711 13, marketed in the form of bottled  - - 
58. With respect to his  Government's plans to reduce its interventions so that enterprises engaged 
in commercial activities set prices according to commercial considerations , he added that the 
intervention measures ha d a temporary character and would not alter the economic system and 
model  away from free market competition , as specified in Decree  Law No. 28/2008 of 13 August 
2008 on "Public Supply of Essential Goods and Management of the Negative Effects of Inflation ". 
The intervention s were to be revoked at any moment once the exceptional  circumstances return ed 
to normal.  
59. The representative of Timor -Leste  added that  his Government, through the Ministry of 
Tourism, Commerce and Industry ( MTCI), had run the "Povu Kuda, Governu Sosa" (People Cultivate, 
Government Purchases)  Program  to stimulate farmers to crop any agricultural products within 
the national territory . Through this Program,  which had been established in 2008  as a measure to 
respond to the political and economic crisis in Timor -Leste arising since 2006 , prices  were set for 
purchasing agricultural commodities from local farmers, applicable only to rice and maize, which 
were basic cereals for food security in the country. As such, the Government of Timor -Leste had 
establishe d the price for MTCI to purchase those cereals, as well as the sale price at municipal 
markets, calculated according to the distance for each municipality. The most recent legal texts on 
rice and maize were Minis terial Order No. 32/2017 of 17  May 2017 on "Regulation of Price for of 
Rice for Re -Sale" and Ministerial Order No.  6/MTCI/III/2011 of 23  March  2011 on "Sale Price and 
Distribution of Locally Produced Maize" . The policy had been  part of the Government 's strategy to 
encourage domestic production and to address the future food security needs of the country.  
60. A Member requested to provide budgetary allocations for this Program as well as the  estimated 
value of agricultural production  for th e specified  crops . In response, the representative of 
Timor -Leste informed that the Program had been  implemented by the private sectors with 
a minimum capital of US$ 5,000 to purchase essential products such as rice and maize.  
The estimated value of  agricultural production, in accordance with the FAO report on the positive 
impact of this support for the essential products (in thousands , US$), was provided in Table 4. 
The Program had been terminated in 2012.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Table 4. Estimated value of agricultural production in Timor -Leste, 2008 - 2012  
US$, thousand  
Description  2008  2009  2010  2011  2012  
Timor -Leste Yield 
Cereals, total  14,427  23,155  24,514  25,861  20,899  
Timor -Leste 
Production Cereals  180,430  255,490  261,816  148,080  182,005  
61. A Member also asked to describe how purchase prices were set  under this Program  and what 
production was eligible for the prices.  The representative of Timor -Leste clarified that the purchase 
prices were set according to the market price of the agricultural commodities, whereby the 
Government purchases rice, maize, beans and other agricultural commodities at a subsidized price, 
i.e. market price plus transportation costs, in accordance with Decree -Law No. 28/2008  of 
13 August  2008 on "Public Supply of Essential Goods and Management of the Negative Effects of 
Inflation ". 
62. [The representative of Timor -Leste  confirmed that from the date of accession, pricing policy 
in Timor -Leste  would be applied in compliance with the provisions of Article s III:4 and XI:1 of the 
General Agreement on Tariffs and Trade 1994 and Article 4 of the WTO Agreement on Agriculture. 
He further stated that in the ap plication of price controls now or in the future, Timor -Leste  would 
apply such measures in a WTO -consistent fashion and take account of the interests of exporting 
WTO Members as provided for in Article III:9 of the General  Agreement on Tariffs and Trade  1994.  
Timor -Leste  would publish the list of goods and services subject to monitoring regimes  and any 
changes to such lists  in its Official Gazette. The  Working Party took note of these commitments. ] 
- Competition  policy 
63. As a result of Timor -Leste 's current level of economic development and private investments, 
the Government  had yet to elaborate its competition policies. Furthermore, as there were limited 
major corporations or business groups (and no listed companies, as ther e was currently no securities 
exchange) that ha d the ability to control or monopolize sectors of the economy, the country ha d yet 
to establish a national competition authority, although certain public policies aimed at regulating 
specific sectors of the ec onomy ha d been approved in the past, and in certain economic sectors 
there were references to the possibility of regulating competition (notably in the telecommunications 
and petroleum downstream sectors).  
64. However, t he Government  recognize d the importance of competition for the strategic 
development of the economy , both domestically and internationally and to promote economic growth 
and development. For this reason, it ha d established a work ing g roup to discuss and prepare 
a Competition  Promotion Policy, based on international standards . The Policy had been first drafted 
in 2015 and was undergoing a revision. The three expected outcomes of thi s Policy were: 
(i) development of a Competition Law; (ii) development of a Consumer Protection Policy ; and 
(iii) establishment of the National Quality Control Institute  of Timor -Leste ( NQCI) under the Ministry 
of Tourism, Commerce and Industry  (MTCI) . The authorities responsible for the implementation of 
the Competition Promotion Policy were as follows:  (i) the Directorate of External Trade of the MTCI;  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  (ii) the QITL; and  (iii) TradeInvest Timor -Leste.  
65. Moreover, the National Parliament ha d passed the Consumer Protection Law No.  8/2016  
of 8 July 2016, which est ablishe d the legal regime for consumer protecti on and legal assistance , 
defining the functions of the State, the rights of consumers and the role of consumer associations. 
The law applie d to goods and services supplied, rendered and transmitted by any natu ral, and legal, 
national and international, public and private persons, who develop, on a professional basis, 
activities of production, manufacturing, exporting, importing, construction, distribution, 
transportation or sale of goods and services, with a vi ew to obtaining benefits. Further discussions 
were underway  to define the main areas to be regulated and the required i nstitutional framework to 
ensure law enforcement.  
III.  FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
- Powers of executive, legislative and judicial branches of Government  
66. The representative of Timor -Leste informed that t he Constitution of the Democratic Republic 
of Timor -Leste (hereinafter: Constitution) had been  approved and decreed on 22 March 2002, at 
a plenary session of the members of the Constituent Assembly, elected on the 30 August 2001 and 
acting as the legitimate representati ves of the Timor ese People.  
67. As provided for in the Constitution, Timor -Leste was a rule of law S tate based on the principle  
of separation of powers and checks and balances, with three separate coordinated branches: 
the Legislative, the Executive and the Judiciary  (Article s 1 and 69 of the Constitution) . In accordance 
with these principles, four organs of sovereignty exist ed: (i) the President of the Republic; 
(ii) the National Parliament; (iii) the Government ; and , (iv) the Courts  (Article 67 of 
the Constitution) .  
68. The President  of the Republic  was the H ead of State  and the Supreme Commander of 
the Defen se Force. Articles 74 to 89 of the  Constitution define d the role a nd powers of the President. 
The President was elected by universal, free, direct, secret and perso nal suffrage, for a five -year 
term (Articles 65.1, 75  and 76). He was invested and t ook oath before the National Assembly and 
could be re -elected only once  (Articles 77.1 and 75.3 of the Constitution) . The President ha d 
the power to appoint the members of the Government, upon proposal from the Prime Minister 
(Article 106.2).  Among the President 's powers was the power to promulgate or veto Laws passed by 
the National Parliament and Decree  Laws approved by the Government (Article 88), and the power  
to dismiss the Government , if the National Pa rliament reject ed the Government program me for two 
consecutive times  (Article 86(g)) .  
69. The Government of Timor -Leste was  headed by a Prime  Minister, who was nominated by 
the President of the Republic after consultation with the sitting parliamentary parties, considering 
the electoral results and the existence, or not, of political majority party or partisan coalition or 
colligation possible  (Article 106 of the Constitution) . The Government was the supreme organ of 
public administratio n responsible for conducting and executing the general policy of the country  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  (Article 103 of the Constitution) , including the power  to negotiate  and prepare for  accession to 
international treaties  (Article  115.1(f) of the Constitution) . It was also vested wit h legislative powers  
(Article 115.3 of the Constitution) .  
70. The National Parliament was the legislature of Timor -Leste . It had a  unicameral structure and  
consist ed of a minimum 52 and a maximum of  65 representatives  elected in secret ballot  elections 
for a five -year mandate  (Article 92 and 93 of the Constitution) . The Constitution did not limit the 
number  of terms that could be served by an elected member of the National Parliament. Under the 
Constitution, the National Parliament ha d the pow er to approve legislation  (Articles 95 and 96 of the 
Constitution) , as well as to  approve , denounce or ratify  international conventions , treaties  and other 
international agreements  (Article 95.3(f) of the Constitution) . Accordingly, f or Timor -Leste to 
become a WTO Member , the National Parliament would need to ratify the Protocol of Accession  in 
accordance with the Constitution.  
71. The representative of Timor -Leste clarified that  the Constitution set forth the division  between 
the legislative powers of the National Parliament and the Government . There were : (i) areas  where  
the National Parliament h eld exclusive competence  to pass laws , e.g., the State Plan and the  State 
Budget , territorial division of the country, the e lectoral law and the referendum system, tax policy, 
defence and security policy, declaration of state of emergency  (Article 95.2 of the  Constitution) ; 
(ii) areas where  the National Parliament  had the primary responsibility to  legislate or could authorize 
the Government  to legislate , e.g.,  monetary system, banking and financial system, definition of 
crimes, sentences, security measures and their respective prerequisites; definition of civil and 
criminal procedure s; organisation of the judiciary and status of magistrates  (Article 96.1 of the 
Constitution ); (iii) overlapping areas where  both the National Parliament and the  Government  could 
legislate  which were not identified in the Constitution, such as public procurement rules ; and,  
(iv) areas of excl usive reserve of legislative powers of the Government , e.g., matters concerning the 
organization and functioning of the Government, including the  organization of public administration 
and creation of autonomous agencies  (Article 115.3 of the  Constitution) . The Parliament adopted its 
legislative acts in the form of  Laws, while the Government  enacted Decree  Laws. Both Law s and 
Decree Law s were legislative acts where  distinction was one of form  and not substance. There was 
no hierarchy between them . All laws, including those approving, denouncing or ratifying  an 
international  convention, treaty or an  international agreement,  and Decree  Laws had to be submitted 
to the President of the Republic for promulgat ion (Articles 73, 85(a) and 88.1 of the Constitution)  
before publish ing in the official gazette  ("Jornal  da República ", available at: 
http://www.mj.gov.tl/jornal/ ). The continuing effect of laws from before indepen dence is explained 
in ANNEX  7.  
72. He added that Timor -Leste legal system adopted the general or customary principles of 
international law (Article 9 of the Constitution). Rules provided for in international conventions, 
treaties and agreements  approved or ratified by Timor -Leste  applied  directly  in its internal legal 
system. All  provisions  that were contrary to such rules  were invalid . WT/ACC/SPEC/TLS/5/Rev.1  
 
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  73. In response to Member's question, he  further  added that all regulatory frameworks in 
Timor -Leste were continuously evolving to adapt to the requisites of the accessions to the ASEAN 
and the WTO an to maintain a legal system conforming  to the international standards.  This included 
the re -evaluation of the existing laws due to  changed circumstance s, scientific or technological 
developments, or other new information.  
74. [The representative of Timor -Leste confirmed that international treaties and agreements 
ratified by the National Parliament , including the WTO Agreement, had precedence over domestic 
laws. If  laws and other acts of Timor -Leste  were found to contradict international treaties or 
agreements, the provisions of the international treaty or agreement, such as the WTO Agreement, 
would  apply. All  legislative or regulatory instruments necessary for the application of the WTO 
provisions would be adopted and enacted upon accession, with the exception of those in the areas 
where Timor -Leste  would be granted transition periods in accordance with its Protocol of Accession.  
The Working Party took note of these commitments. ] 
75. In accordance with Article 123 of the Constitution, Timor -Leste judicial system was comprised 
of: (i) courts of general jurisdiction with the Supreme Court of Justice as the highest court of appeal ; 
(ii) tax and administrative courts  with the High Administrative, Tax and Audit Court  as the highest 
court of appeal ; and , (iii) military courts.  In addition, m aritime and arbitration courts could  be 
created . However, the Constitution prohibit ed the creation of special courts to judge certain 
categories of criminal offences. Courts were so vereign bodies, independent and subject only to 
the Constitution and the law  (Articles 118 and 119 of the Constitution) .  
76. The court syste m of Timor -Leste was still in transition from the pre -independence time. Thus, 
not all of the judicial institutions envisaged under the Constitution had been created . As of February  
2023, the court system continued to consist of four District Courts (in Di li, Ba ucau, Suai, and 
Oecussi) which addressed civil, criminal, as well as tax and administrative matters, as courts of first 
instance, and one  ad hoc  temporary Court of Appeal in Dili which handled appeals  and accumulated 
competencies of the Supreme Court of Justice  and the  permanent Court of Appeal (both to be 
established) . Under Law No. 25/2021 of 2  December 2021 on "System of Courts",  as amended by 
Law No. 12/2022 of 21 December 2022,  the Supreme Court of Justice and the permanent Court of 
Appeal were to be established by 21 June 2025 , as the highest judicial body and the guarantor of 
the uniform application of the law, with jurisdiction on  constitutional and electoral matters 
throughout the territory of Timor -Leste. The permanent Court of A ppeal, when established, would 
succeed the current temporary court. In addition, t hirteen Courts of first in stance would be 
established in municipalities or a special administrative region, to handle civil, criminal and family 
matters. Four of these Courts  would succeed the four existing District Courts. The remaining nine 
Courts of first instance would be established once the necessary human and financial conditions 
were in place. Until then, the established courts of first instance could decide to extend their 
territorial jurisdiction to more than one municipality.  
77. Separately, the Audit Court had been established in 2011 by Law No. 9/2011 of 
17 August  2011 to supervise public finance and to ensure transparency in public accounts.  Under WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Law No.  25/2021, it would be succeeded by the High Administrative, Fiscal and Audit Court 
responsible for adjudicating disputes arising out of administrative and fiscal legal relations. Within 
it, the Audit Chamber would  be established. Under this  Court , administrative and fi scal courts of first 
instance would  be established. Until the n, their competencies were exercised by judicial courts.  
- Government  entities responsible for making and implementing policies affecting 
foreign trade  
78. As per the organigram of the VIII Constitutional Government, approved by the Decree -Law 
No. 14/2018 of 17 August 2018, as amended by Decree -Law No. 27/2019 of 19 June 2019, trade 
and other trade -related issues fell under the responsibility of  the Ministry of Tourism, Commerce, 
and Industry (MTCI) and the Ministry of Agriculture and Fisheries which were both under the 
coordination by the Coordinating Minister for Economic Affa irs (MCAE).  
79. The Coordinating Minister for Economic Affairs (MCAE) supported the Prime Minister in 
the supervision of the economic policy and it was responsible for coordinating the execution of public 
policies related to economic development. MCAE directl y coordinated the following line ministries 
and sectors: (i) Ministry of Agriculture and Fisheries; (ii) Ministry of Tourism, Commerce and 
Industry; (iii) Secretary of State for Vocational Training and Employment; (iv) Secretary of State for 
Cooperatives; and (v)  Secretary of State for the Environment.   
80. Trade policy matters were the responsibility of the Ministry of Tourism, Commerce, and 
Industry (MTCI), which  was responsible for developing trade policies on an industry -wide basis, and 
policies related to tourism and commercial economic activities. It also had the competence to 
develop legal frameworks  affecting the supply of goods and services .  
81. The Ministry of Finance  (MF) had the responsibility  for drafting, executing, coordinating and 
assessing the policies for the  areas of annual budget and finance planning and monitoring. 
This include d general economic advice for the Government  and on the Government  tax policies. Laws 
affecting the levying of  customs duties were administered by the Directorate General of Customs, 
which was a division of the Ministry of Finance, and ha d the responsibility to oversee Government  
policies relating to improving the administration of both imports and exports.  
82. The Ministry of Agriculture and Fisheries  (MAF)  had the responsibility for drafting, executing, 
coordinating and assessing the policies for the areas of agriculture, forestry, fisheries , livestock  and 
quarantine . This include d the responsibility for promoting a nd inspecting food production, including 
seeds, and to promote the development of fisheries and livestock industry. The Ministry of 
Agriculture and Fisheries was also responsible for phytosanitary measures.  
83. Laws governing  private  investment s (both foreign and national)  were administered by 
the Investment and Export Promotion Agency (TradeInvest Timor -Leste/TITL) , an agency that was 
under MCAE 's oversight . This agency , which was re -established through Decree -Law No. 45/2015 of 
30 December 2015, was responsible for promot ing, facilitat ing, monitor ing and advocat ing for 
private investments and exports  and serve d as a "one-stop-shop" service for private investments WT/ACC/SPEC/TLS/5/Rev.1  
 
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  and exports in Timor -Leste.  
84. Laws pertaining to establishing legal entities were implement ed by the Commercial 
Registration and Verification Service (SERVE), an agenc y that was  also under MCAE 's oversight . 
This agency was fully established under Decree -Law No. 7/2017, as a public institute  with the 
mission to execute and promote policies related to commercial registration and licensing procedures 
in order to facilitate the business environment . 
85. The representative of Timor -Leste also informed that his Government planned to establish the 
Permanent Secretariat on  the Accession to the WTO  which would focus on WTO matters. 
The respective Government Decree defining the structure and competence of the Secretariat was 
being developed, for adoption by the Council of Ministers.  
- Division of authority between central an d sub -central Government s 
86. Timor -Leste was a unitary state with one central Government  (Article 1 of the Constitution) . 
It was  divided into  12 Municipalities and one Special Administrative R egion.  Municipalities had been  
created by Law No.  11/2009 of 7 October 2009 , as amended by Law No.  4/2016 of 25 May 2016, 
although they were yet to become fully operational.  They were considered Autonomous 
Administration of the local Government, even though they did not yet have local legislatures , and 
were further divided into 67 Administrative Posts whi ch could  be sub-divided into Sucos 
(i.e., villages ). The central Government operate d administratively in all municipalities , according to  
Decree  Law No. 3/2016 of 16 March 2016. It also define d the competence and functioning of  the local 
Governments (Article 72.2 of the Constitution). As local Governments, t he Municipal Authorities and 
Administrations implement ed the decisions of the central Governmen t at the loc al level, wi th some 
degree of  autonomy  and overseen by the Ministry  of State Administration . While they  were yet  to 
be fully established , gradually,  it was anticipated that they would be directly elected by 
the respective constituencies, and become real local powers not depending hierarchically on 
the central Government.  
87. In 2014, the National Parliament had created the Oe -Cusse Ambeno  Special Administrative 
Region and established the Oecusse Ambeno and Ataúro Special Social Market Economy Zone aimed 
at creating the conditions to increase both foreign and local investment in those regions. 
The Administra tive Region 's executive bodies had been granted the regulatory, administrative, 
economic and financial powers, including concession of public services, supervision of certain sectors 
and expropriation in the public interes t, to pursue their objectives  (Law No. 3/2014 of 18 June 2014, 
as amended by the Law No. 3/2019 of 15 August 2019) . 
- Description of judicial, arbitral or administrative tribunal or procedures  
88. Since 2008,  Timor -Leste had in place administrative procedures that could  be used within the  
Administration before referring a dispute to a court (Decree Law No. 32/2008 of 27  August  2008). 
Natural and legal persons were entitled to present a claim both before the public entity directly 
involved in the case and before the supervising authority. A dministrative procedures regarding WT/ACC/SPEC/TLS/5/Rev.1  
 
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  customs decisions were regulated by Articles 67 to 77 of the Customs Code  (Decree -Law 
No. 14/2017 of 5 April  2017). In response to a question from a Member, he added that appeals of 
administrative actions to higher admini strative authorities were regulated by Decree -Law 
No. 32/2008 of 27 August 2008 on "Administrative Procedure". The Decree -Law consecrated the 
right of individuals or enterprises affected by any administrative action (including those subject to 
the WTO prov isions) to appeal such an action (Article 68). Appeals were to be lodged with the higher 
administrative authorities that produced the action (Article 75) or to the higher administrative 
authorities with competencies over the entity that produced the action (Article 84). The Decree -Law 
also consecrated the principle of access to court to appeal  actions by public entities (Article 9).  
89. There were no judicial, arbitral or administrative courts or procedures to specifically deal t with 
trade matters. Therefore , conflicts arising  with respect to such matters  were settled by the  judicial 
courts. Access to courts was a fundamental right consecrated in Article 26 of the Constitution, which 
established that access to  courts was guaranteed to all for the defence of their legally protected 
rights  and interests. Justice could  not be denied for insufficient economic means and thus there was 
a specific public body which ensures legal assistance to those lacking financial r esources. Also, Article 
12 of Law No. 15/2017 of 23 of August 2017 "Private Investment Law" indicate d access to the courts 
as a primary right of the investors. The procedures to be followed for Civil and Administrative 
Procedures in front of the courts were contained in the Decree -Law No. 1/2006 of 21 February 2006 
"Civil Procedure Code".  
90. On 22 February 2021, the National Parliament had approved the Arbitration Law that had been 
designed based on the 2006 model of the International Arbitration Law recommen ded by the  UN 
Commission on International Trade Law (UNCITRAL). This Law had created alternative means of 
resolving trade  disputes and was set to increase legal certainty and speed in resolving conflicts. 
It provided  a comprehensive set of procedural rules  upon which parties could  agree for the conduct 
of arbitral proceedings arising out of their commercial disputes. He added that Timor -Leste was also 
a member State of the International Centre for Settlement of Investment Disputes (ICSID) and part y 
to the C onvention on the Settlement of Investment Disputes between States and Nationals of Other 
States (ICSID Convention)  as provided for in the National Parliament 's Resolution No. 14/2016 of 
31 August 2016 .  
91. [The representative of Timor -Leste  confirmed that the  current constitution, laws and 
regulations provided the necessary institutional base for the prompt administrative and judicial 
review of the administrative actions.  The representative of Timor -Leste  further confirmed that, from 
the date of accession, Timor-Leste 's laws and regulations would provide individuals or enterprises 
affected by any administrative action subject to WTO provisions, the right to appeal such action, 
without penalty, both to a higher administrative authority and to the courts or other  independent 
tribunal in conformity with WTO obligations, including those set out in Article X of the General 
Agreement on Tariffs and Trade 1994, Article 23 of the WTO Agreement on Subsidies and 
Countervailing Measures, Article 11 of the WTO Agreement on Implementation of Article VII of the 
GATT 1994, Article 62 of the WTO Agreement on Trade -Related Aspects of Intellectual Property WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Rights and Article VI of the General Agreement on Trade in Services.  The tribunals or procedures 
would also include actions re lating to the implementation of national treatment, conformity 
assessment, the regulation, control, supply or promotion of a service, including the grant or denial 
of a licence to provide a service and other matters.  The tribunals or procedures responsible  for such 
reviews would be impartial and independent of the agency entrusted with administrative 
enforcement and would not have any substantial interest in the outcome of the matter.  The review 
procedure would include the opportunity for appeal, without pe nalty, by individuals or enterprises 
affected by any administrative action subject to review.  Notice of the decision on appeal would be 
given to the appellant and the reasons for such a decision would be provided in writing.  The Working 
Party took note of these commitments. ] 
IV. POLICIES AFFECTING  TRADE IN GOODS   
- Trading rights, registration requirements for engaging in importing  and exporting  
92. The representative of Timor -Leste  informed that Timor -Leste  did not have any specific 
applicable regulations r equiring persons to register in order to engage in import/export activities. 
However, natural and legal persons importing/exporting on a commercial basis were required to 
obtain a  licence  issued by the Registry and Business Verification Service (SERVE), in  accordance 
with Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities" , as 
amended by Decree -Law No. 83/2022 of 23 November 2022 . This legal framework applied to natural 
and legal persons, domestic of foreign, aimed at obtaining  the licensing for commercial activities 
regarding wholesale, retail, cumulative commerce, general commerce, imports, exports, services 
and other commercial activities not regulated by specific legislation.  
93. The representative of Timor -Leste explained that, before the adoption of Decree -Law No. 
83/2022 of 23 November 2022, Annexes I to III of Decree -Law No. 34/2017 had set out the types 
of business activities based on the  lower, medium and higher risk criteria , as reflected in ANNEX 
8(A) to 8(C) . Classification of activities had followed international standards adopted by the United 
Nations Statistics Division (I nternational Standard for Industrial Classification ). Importation of goods 
classified under the lower risk would automatically be granted an authorization. For importation of 
goods classified under the  medium or higher risks, importers were required to obtain sectoral 
licences based on business activities.  With the adoption of Decree -Law No. 83/2022 this 
categorization had been eliminated.  The new legal framework introduced by Decree -Law 
No. 83/2022 had simplified the licensing procedure s and narrowed th e scope of  activities that 
required  licensing. The need for licensing for specific economic activities now depended on the 
existence of a specific sectorial legal framework  (e.g., mining, infrastructure, aviation, tourism and 
recreational facilities, telec ommunications, etc.) . There are economic activities that required 
licensing based on the existence of such framework was being compiled by SERVE. In the meantime, 
SERVE coordinated directly with responsible Ministries on all licensing applications received . 
Article  10 of Decree -Law No. 16/2017 of 17 May 2017 on "Commercial Registr ation" set out the 
criteria and information requirements for obtaining a commercial licen ce.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  94. SERVE acted as a single window by receiving applications from businesses. In line with 
Decree -Law No. 34/2017, o nce applications were received, SERVE sent the documents to the 
relevant Ministries and Agencies to obtain an  authorization / licence subject to  the sectoral 
requirements.  Thus, while the automatic import licensing system was controlled by a single entity, 
the non-automatic import licensing system was controlled by sectorial Ministries or Agencies.  
Depending on the specific requirements by the line Ministries and specific steps that had to be 
implemented in the authorization process, this procedure could take up to one month.  Once business 
licences were issued , importation of goods could be made imm ediately.  
95. He added that for some  businesses additional licences could apply . Thus, Decree -Law 
No. 12/2004 of 26 May 2004 on "Pharmaceutical Activities" subjected imports of pharmaceutical 
products to health regulations, under the authority of the  Ministry  of Health. Article 3 of this 
Decree -Law determined that activities of import (as well as storage, sales in bulk, sales in retail, 
and export of medicines for human use) could only be exercised by entities duly registered in 
accordance with the applicable law for registration of businesses and duly licen ced by the Regulating 
Commission of Pharmaceutical Activities pursuant to this Decree -Law, after consultation with the 
Board of Management pursuant to sub -paragraph (d), item 1, of Article 22 of the Organic Statute of 
the Ministry of Health. Such requirements were elaborated in sub-section " Import licensing 
procedures ".  
96. He also informed that a t the time of importation, the Directorate of Customs Authorit y require d 
all commercial importers /exporters  to prove they ha d a Timor -Leste Taxpayer Identification Number 
(TIN) . In addition, c ompanies had to  prove they were validly  incorporated. This requirement applie d 
to all individuals or companies that engage d in import/ex port activities on a commercial basis.  
97. Individual and Agency Entrepreneurs could apply for company registration at SERVE. There 
was no cost for businesses or sole traders and companies' registration. In line with Decree -Law 
No. 16/2017, t he following docu ments had to  be submitted: ( i) Act of Association (AoA); 
(ii) shareholders' IDs and, if married, proof of their marriage certificate and/or matrimonial property 
regime; ( iii) shareholders' taxpayer number (if any, otherwise it could  be attributed by SERVE at 
the time of registration); ( iv) identification of the corporate bodies; ( v) letters of acceptance for each 
member of the corporate bodies; ( vi) documents certifying that the  company's capital has been 
deposited if it was mentioned in the AoA; ( vii) map depicting the location of registered offices; and 
(viii) certified copies of prior authorizations to conduct business, if applicable.  The business 
registration  was conducted  by SERVE in one to five business  days.  At the end of the process, 
the registration documents c ould be collected at SERVE: registration certificate, which indicates 
the business or sole trader's and company's registration number, the tax identification number  
(TIN), the incorporation certificate and the business authorizations/licences.  
98. The representative of Timor -Leste added that his Government had recently  amended  the Law 
on "Licensing of Economic Activities " by Decree -Law No. 83/2022 of 23 November 2022,  to simplify 
the licensing procedure, to make it less burdensome and bureaucratic.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  99. [The representative  of Timor -Leste confirmed that from the date of accession, Timor -Leste 
would grant any natural or legal person, regardless of physical presence or investment in 
Timor -Leste, the right to be the importer of record of any product allowed to be imported into 
Timor -Leste, at any level of distribution, and that its laws and regulations relating to the right  to 
trade in goods and all fees, charges or taxes levied on such rights would conform fully with its WTO 
obligations, including Articles VIII:1(a), XI:1, and III:2 and 4 of the General Agreement on Tariffs 
and Trade 1994, Article III of the General Agreeme nt on Trade in Services, and Article 63 of the 
WTO Agreement on Trade -Related Aspects of Intellectual Property Rights.  He also confirmed that 
full rights to import and to export would be granted in a non -discriminatory and non -discretionary 
manner from the  date of accession, and any requirements for commercial registration or application 
for trading rights would be for customs and fiscal purposes only, would not require investment in 
Timor -Leste nor confer the right to distribute there, and would not consti tute a barrier to trade.  
The Working Party took note of these commitments.]  
- Trade facilitation  
100.  For Timor -Leste, trade facilitation was the tool for a ccess ing outside markets which wa s 
essential to propel growth . It was hence engaged on promoting trade facilitation policies aimed at 
making international trade easier and more efficient. It had  embarked on trade facilitation policies 
in 2016, with the establishment of the National Trade Facilitation Committee (Government 
Resoluti on No. 6/2016 of 17 February 2016), as a forum for consultative dialogue between 
the Government, the private sector and other stakeholders, such as development partners, to 
provide recommendation for reforms, with the ultimate goal to coordinate efforts an d improve trade 
facilitation.  Among the  Committee 's responsibilities were: (i) to promote the analysis of procedures 
for import and export and to suggest the adoption of harmoniz ed and simplified measures;  
(ii) to coordinate public consultations and put together recommendations aimed at facilitating import 
or export; (iii) to support the Government in the implementation of legislative and procedural 
reforms to facilitate import and export;  and, (iv) to coordinate th e work undertaken by all 
Government entities relate d to facilitation of import and  export. The list of members of 
the Committee is contained in ANNEX 9. The Government was in the p rocess of revising Government 
Resolution No. 6/2016 , to adjust its functions and composition. The respective draft resolution has 
been shared with the Working Party.  
101.  The Government of Timor -Leste intend ed to modernize the country's customs framework  in 
order to improve import/export process es in Timor -Leste , in the context of the ongoing efforts to 
modernize the economy and meet the WTO and ASEAN standards. With the assistance of 
the International Finance Corporation (IFC), the Customs  Authority  was working on a customs 
reform. The major goals of this reform were to reduce bureaucracy, increase transparency, and 
streamline the processes for import and export procedures.  In order to achieve these goals, 
the Government was implementing three main steps: (i) review of the customs legislative 
framework; (ii) integration of the quarantine and customs services systems (including their 
computer systems); and, (iii) public discussion in order to allow stakeholder en gagement during 
the implementation phase (Ministries, customs brokers, major importers, etc.).  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  102.  The customs reform process had started with the approval of the  2017 Customs Code 
(Decree -Law No. 14/2017 of 5 April 2017). The Code reflect ed the political will of the Government 
of Timor -Leste in support of trade facilitation and was based on the Kyoto Convention of the World 
Customs Organization (WCO).  The Government therefore expected the Code to be in compliance 
with the WTO Trade Facilitat ion Agreement (TFA).  It define d customs procedures, adopt ed customs 
risk management and promote d integrity and transparency as agreed upon by the Arusha 
Declaration. It cover ed, namely: (i) customs control and supervision; (ii) areas subject to customs 
control; (iii) customs powers; (iv) customs duties; and (v) customs offenses.  The Code required for 
recruitment and training of professionals to implement it.  The Code had replaced the following laws: 
(i) previous Customs Code (Decree -Law No. 11/2004  of 19 Ma y 2004); (ii) Decree -Law No. 9/2004 
of 19 May 2004 on "General Rules on the Import, Storage and Movement of Goods Subject to 
Selective Excise Tax"; (iii) Decree -Law No. 10/2004 of 19 May 2004 on "Tax and Customs Offences"; 
(iv) Decree -Law No. 15/2005 on "S tatute of Licen ced Customs Brokers"; and (v) Decree -Law 
No. 5/2007 of 13 August 2007 on "Regime of Customs and Customs Fund Emoluments".  The Code  
guided all subsidiary customs legislation that needed to be produced (see ANNEX 10 ). The custo ms 
reform w ould continue for another three years, until end -2025.  
103.  To further detail the reform , Timor -Leste was developing a National Single Window, to be  
ultimately positioned as the link between an eventual single window of the Community of Portuguese 
Language  Countries (CPLP) and the ASEAN single window, becoming a hub and platform that linked 
a market of over 2.4 billion people.  To this end , The Customs Code contain ed: 
• Title V, Chapter I, dealing with Electronic Records and Payments based on United  Nations 
Commission on International Trade Law (UNCITRAL) model laws ;  
• Article 79 that allowed the Customs Director General to request  specific document s or 
payments be transmitted in electronic form;  
• Article s 79 and 80 that allowed the National Director to authorize certain persons to lodge 
documents in electronic form or to make payments electronically . It provide d the National 
Director the flexibility  to modify the authorization in order to adapt to changes in technology;  
• Article 82 allow ed for electronic signatures, accompanied by a definition of an  electronic 
signature, which was based on the definition in UNCITRAL model laws;  
• Article 83 that provided for the legal effect and enforceability of electronic documents and 
electronic signatures;  
• Article 84 that provide d for the legal effect of decisions made by the Office of Customs through 
an automated system;  
• Article 85 that prohibit ed unauthorized a ccess to the Customs computer systems;  
• Article 86 that allowed for the Director General to prescribe technical requirements relating to 
electronic records, electronic signatures, and related control processes and procedures.   
The Government had adopted the Automated System Customs Data Administration software  as 
the technological platform for all customs procedures and documentation  (ASYCUDA -World , as 
determined by Government Resolution No. 24/2017 of 17 May 2017 , same as ASEAN) . Customs 
procedur es were moving from being lodged on paper forms to online systems . The implementation WT/ACC/SPEC/TLS/5/Rev.1  
 
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  of the National Single Window project had started in January 2020.  Full implementation was 
projected for end -2024.  The timeline for the implementation of the project is c ontained in ANNEX 
11. 
104.  The Office of the Director General of Customs at the Ministry of Finance was working on 
improving the computer facilities and Internet connections at all ports and the airport in order to 
allow fo r staff at those ports  to be able to make entries directly into the ASYCUDA system. 
Thus far, this include d work at the following posts: (i) Dili Sea Port, Dili Airport, Baucau Sea Port, 
Salele – Suai Sea Port, Oecusse Sea Port; and (ii) Land customs posts : Suai -Salele, Oecusse, 
Maliana.  
105.  Under th e customs reform, through the "Integrated Customs and Quarantine Services" 
system, in addition to the Database of Importers  which already existed in Timor -Leste, 
the Directorate General of Customs and the IFC also aimed to create an  integrated system that 
reduced the bureaucratic burden and increased the exchange of information between the Customs 
Authorit y, Quarantine Services and other relevant Government services , to enable the 
importer/exporter to interact with a single administrative authority throughout the entire 
import/export process.  It was expected that, once ASYCUDA -World was implemented, all information 
regarding goods that require d licences would be stored in the respective database.  
106.  The O ffice of the Director General of Customs, with the assistance of the IFC, was seeking to 
improve the system for giving advance clearance of cargo. As part of this project, the IFC was also 
attempting to improve the capacity of the Office of Quarantine to o perate a system for advance 
clearance of cargo. This project include d efforts to establish internal procedures for monitoring 
instances in which there was some interruption to clearance subsequent to advance clearance having 
been granted.  
107.  In response to a question from a Member on the Government's intention to use Time Release 
Studies (TRS) to identify bottlenecks in import and export procedures , the representative of 
Timor -Leste agreed that t he WCO Time Release Study was an internationall y-recognized tool to 
measure the actual time required for the release and/or clearance of goods, with a view to finding 
bottlenecks in the trade flow process and taking necessary measures to improve the effectiveness 
and efficiency of border procedures. The Government of Timor -Leste, through the Customs 
Authority, w ould publicize the information and publish the corresponding policy and operational 
measures to further improve trade facilitation at the border.  
108.  In response to a question about Timor -Leste's  intention to implement the TFA and  to 
categorise its future commitments under the A, B and C categories , the representative of Timor -Leste 
confirmed that his Government had committed to adhere to the TFA by implementing the ASYCUDA 
World System since April 2017  to expedite the movement, release and clearance of goods.  
Nevertheless, recognizing Timor -Leste 's status as an LDC , full compliance with the TFA w ould require 
strengthening the necessary legal/policy provisions, procedures, infrastructure and human capita l. 
Timor -Leste's proposed categorization of its TFA commitments is provided in annex 12. WT/ACC/SPEC/TLS/5/Rev.1  
 
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  109.  [The representative of Timor-Leste  took note of the Protocol Amending the Marrakesh 
Agreement Establishing the World Trade Organization done at Geneva on 27 November 2014 
(WT/L/940) (TFA Protocol) . This Protocol,  which had entered into force on 22 February 2017 , had 
inserted the Agreement on Trade Facilitation into Annex 1A of the WTO Agreement. 
The representative of Timor -Leste  confirmed that  his Government  would accept the TFA Protocol by 
virtue of accepting the Protocol of Accession. He further confirmed that Timor -Leste  would apply the 
WTO Agreement on Trade Facilitation from the date of accession , using the categories of 
commitments as proposed in annex 12, as a least -developed country . The Working Party took n ote 
of these commitments. ] 
A. IMPORT  REGULATIONS  
- Ordinary customs duties  
110.  The representative of Timor-Leste  informed that  previously , according to Decree -Law 
No. 8/2008 of 30 June 2008  "Taxes and Duties Act ", his Government  had provide d for a flat import 
duty rate of 2.5% ad valorem  on all imported goods, regardless of the ir classification. In accordance 
with Article 3 of Law No. 15/2022 of 21 December 2022 on "State Budget for 2023", from 
1 January  2023, the flat import rate ha d been in creased to 5% ad valorem  on all imported goods.  
111.  In accordance with the Customs Code of Timor -Leste  (Decree -Law No.  14/2017 of 
5 April 2017), the Customs Tariff of Timor -Leste comprise d the Nomenclature of Goods in 
accordance with the International Convention on the Harmonized Commodity Description and Coding 
System (HS)  of the World Customs Organization  (WCO) . As such, since a flat import duty rate of 
5% was applied, there were no other  taxes, fees and charges set in relation to each tariff line. 
Currently, Timor -Leste 's Directorate General of Customs use d the Tariff Nomenclature in HS 20 17.  
112.  He added  that his Government planned to increase the applied duties for agricultural and 
non-agricultural products in the medium term. The  implementation of this plan w ould be subject to 
the revision of the Taxes and Duties Act, as per the Action Plan provided in ANNEX 15, and would 
be in compliance with the tariff concessions and commitments negotiated with Members.  
113.  [In response to a request from a Member, the representative of Timor -Leste confirmed that 
Timor -Leste would submit i ts Information Technology Agreement (ITA) and ITA Expansion schedules 
to the WTO ITA Committee and the 2015 ITA Expansion Group for verification and approval, in 
accordance with the ITA and the ITA Expansion procedures, in order to enable Timor -Leste to jo in 
the ITA and the ITA Expansion when it became a WTO Member. The Working Party took note of 
these commitments.]  
- Other duties and charges  
114.  [The representative of Timor -Leste informed  that Timor -Leste d id not apply any other duties 
and charges within the meaning of Article of Article II:1(b) of the GATT 1994.  He confirmed that 
Timor -Leste would  bind at zero other duties and charges in its Schedule of Concessions and 
Commitments, pursuant to Article II:1(b)  of the GATT 1994. The Working Party took note of this WT/ACC/SPEC/TLS/5/Rev.1  
 
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  commitment. ] 
- Tariff quotas, tariff exemptions  
115.  The representative of Timor -Leste informed  that Timor -Leste d id not apply any tariff quotas 
and d id not intend to apply any quantitative limits on the vo lumes of imports . 
116.  The Taxes and Duties Act provide d for a list of goods that were exempted from import duty. 
This list include d exemptions for goods: (i ) of a non -commercial nature below a threshold value 
imported by travellers ; (ii) imported under diplomatic and United Nations (UN) exemptions; 
(iii) imported by charitable organizations; (iv)  temporary imports; and (v) a few others, as detailed 
in ANNEX 13.  
117.  Further, according to  Article 3 of Law No. 15/2022 of 21 December 2022 on "State Budget for 
2023", from 1 January 2023, (i) the imports  by the State or other public legal persons, of arms and 
ammunition for the National Police of Timor -Leste (PNTL), the Scientific Police for Criminal 
Investigation (PCIC) and the FALINTIL - Defense Forces of Timor -Leste ; and (ii) the imports  of goods 
that were donated, or used in the production or construction of goods that were donated, to the 
State by foreign States, by public collective persons of foreign States or by international 
organizations , were also exempt from import duty . 
118.  Additionally, t he Custo ms Code also provide d for relief from import duties for goods, not being 
of a commercial character, and falling within one of the 11  following  categories :  
• Goods that constitute d personal items and household effects imported by individuals 
transferring the ir residence, on a definitive basis, to the customs territory of Timor -Leste, 
provided that such goods ha d been in the custody of such individuals and that, where they 
were durable goods, ha d been utilised by the same individuals in their previous habitual  
residence for at least six months before the date on which they abandoned such residence in 
the third country of departure and that such goods were intended for use for the same 
purposes in their new habitual residence;  
• Movable goods, layettes and gifts imported on the occasion of a wedding, provided that they 
belong ed to one or to the two members of the couple that, as a consequence of the wedding, 
transfer red their habitual residence to Timor -Leste;  
• Personal goods acquired by succession;  
• Shipments sent from private individuals to private individuals, of insignificant value, which 
were sent directly from a foreign country to an addressee in Timor -Leste;  
• Goods contained in the personal luggage of travellers, provided that they  were occasion al 
importations and were devoid of commercial character, the limits of which were laid down in 
the Decree -Law No . 10/2003 of 22 July  2003;  
• Instruments, objects, scientific apparatuses and other instruments of educational, cultural or 
pedagogical character  intended for public establishments or bodies, or public utilities, as long 
as these entities were legally recognised as such and the importations were authorised by the 
Minister of Planning and Finance or his or her representative;  
• Gifts received in the framework of international relations, provided that such gifts ha d been 
imported by people who ha d made an official visit to a foreign country or by people who visit ed WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Timor -Leste and br ought  gifts for the authorities hosting them, or that such gifts were sent as 
a sign of friendship to a public authority, to a community, to a body, or to groups undertaking 
activities of public interest ;  
• Goods constituting gifts offered to Heads of State or to people enjoying similar prerogatives 
in the international arena , or goods intended for use or for consumption during the official 
stay of foreign Heads of State, within the limits and conditions to be established by 
the Customs Authorit y; 
• Machines and apparatuses imported solely for exhibitions and fairs, as well as materials 
intended to assembly or decorate provisional pavilions in fairs or exhibitions;  
• Prospects, brochures, books, magazines, guides, maps or photographs intended to promot e 
tourism; or 
• Publications from foreign Government s and international organisations intended for free 
distribution as well as documents sent free of charge to public services .  
119.  In response to a Member's question in relation to category (iv) that refer red to shipments of 
insignificant value, he clarified that Article 278(2) of the Customs Code refer red to goods without 
commercial value , i.e.,  whose value d id not exceed the statistical threshold, as defined in the Tax 
Law. The Government, through the VAT  Commission, was revising  the VAT Law with a possibility to 
set the threshold value of US$ 50 0. This draft law was in the pipeline for the Government 's approval 
in line with the Action Plan in ANNEX 15. 
120.  [The representative of Timor -Leste confirmed that any tariff rate quotas, if introduced in the 
future, would be applied and administered in conformity with WTO rules an d regulations, including 
MFN and national treatment provisions. He also confirmed that upon accession to the WTO, any tariff 
exemptions would only be implemented in conformity with the relevant WTO provisions including 
Article I of the General Agreement on Tariffs and Trade  1994 and the WTO Agreement on 
Trade-Related Investment Measures. The Working Party took note of these commitments .] 
- Fees and charges for services rendered  
121.  The Customs  Authority  collect ed fees and charges for services rendered in accordance with 
the Customs Code , which establishe d the re gime of customs and customs fund emoluments, as 
provided in ANNEX 14.  
122.  Article 66 of Decree -Law No. 21/2003  of 31 December 2003  "On Quarantine and Sanitary 
Controls on Goods Imported and Exported" authorize d the Ministry of Agriculture and Fisheries and 
the Minist ry of Finance to issue a joint Ministerial Statute defining the service fees for granting import 
licences, issuance of certificates or any other fees for services.  To date, no action had been taken 
on introducing such fees.  
123.  [The representative of Timor -Leste  confirmed that, from the date of accession, all fees and 
charges for services rendered, applied on or in connection with importation or exportation, would 
conform with the provisions of the WTO Agreement, in particular Articles VIII and X of th e GATT 
1994. The Working Party took note of this commitment. ] WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Quantitative import restrictions , including prohibitions, quotas and licensing  
systems  
124.  The representative of  Timor -Leste informed that,  as elaborated in section "Sanitary and 
phytosanitary mea sures",  for public health reasons, the importation of the following products was 
prohibited: (i) any proteins for animal feeding containing meat powder, bone powder, blood powder, 
or fat from mammal tissues; (ii)  poultry powder for ruminant feeding; (iii) any products from cows, 
sheep, or goats showing clinical signs of spongiform encephalopathy; (iv) any animals or any 
products of any animals showing clinical symptoms of certain diseases including, for example, 
foot-and-mouth disease and bird flu; and (v) non-transformed fat.  Importations of: (i) items listed 
in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES, 
Article 72);  (ii) items originating from a country or areas where there was an ongoing occurrence of 
quara ntine-related plagues or diseases (Article 72); and (i ii) exotic seeds included in a list to be 
approved by a Ministerial Diploma (Article 82)  were also prohibited. There were no other quantitative 
import restrictions, including prohibitions and quotas.  
125.  In response to a Member's question, the representative of Timor -Leste confirmed that there 
were no quantitative restrictions on the import of alcohol ic beverages, including spirits, wine and 
beer. At the same time, the Annual Budget Law for 2023 (specified excise taxes on alcoholic 
beverages, as described in section "Application of Internal Taxe s to Imports".  
- Import licensing procedures  
126.  The re presentative of Timor-Leste  informed that his Governmen t did not operate a ny general 
system requiring licen ces in order to import goods. At the same time , legal and natural persons 
importing goods on a  commercial basis were required to obtain a  business  authorization  (licence)  
under Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities",  as 
amended by Decree -Law No. 83/2022 of 23 November 2022,  as described in section on "Trading 
rights, registration requirements for engaging in importing and exporting" . He added that the 
information on the licensing regime was detailed in document  WT/ACC/TLS /10.  
127.  A Member asked to provide  information on the roles of the ministries and agencies involved 
in the licensing process, as well as  the procedures for how Timor -Leste handled import a nd 
export -related emergencies (i.e., a denial of imported goods into the country). The representative 
of Timor -Leste said that i n any situation of import and export -related issues, including emergencies, 
there were several Ministries with authority to deny imports of goods into the country, or exports  
from the country , whose legal procedures were detailed in relevant  Decree -Laws according to 
the structure established by Decree -Law No. 14/2018 of 17 August 2018, "Organic Law of the 
VIII Constitutional Government of Timor -Leste" . These were: (i) Ministry of Agriculture and Fisheries 
(animal and plant products), (ii) Ministry of Health (pharmaceutical products), (iii) Ministry of 
Defence (explosive products for civil construction, oil and miner al activities), (iv) State Secretary for 
Environment (refrigerators), and (v) Ministry of Transport and Telecommunications (motor vehicles) .  
128.  He added  that the Customs Authority operate d under the Ministry of Finance and was WT/ACC/SPEC/TLS/5/Rev.1  
 
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  regulated by Decree -Law No. 2/2020 of 8 January 2020  on "Organic Law of the Customs Authority 
(CA)" . Article 3 of the Decree -Law determine d that the Customs Authority  had the general mission 
of exercising control over the entire national customs territory for tax, economic and social protection 
purposes, namely in the field of public safety, environment, culture and health, as well as 
administering tax collection and custo ms and other fees that are legally committed.  The Customs 
Authority enforced the Customs Code which establishe d the general rules and procedures for the 
import and export of goods  (including denial of imported goods in the country) , their movement and 
use in the customs territory, the control of passengers and the Customs' administrative and 
enforcement powers. (Article  1.1 of the Code ). Customs powers were detailed in Title III of the Code. 
129.  As described in section on "Sanitary and phytosanitary measures", by force of Article 1 of 
Decree -Law No. 21/2003 of 31 December 2003 on "Quarantine and Sanitary Control on Imported 
and Exported Goods", the imports of plant and animal products were subject  to quarantine 
regulations. The Directorate of Quarantine Services  and Biosecurity  under the Ministry of Agriculture 
and Fisheries dealt with the issues related to the monitoring of the implementation and compliance 
with laws and regulations , applicable to  phyto - and zoo -sanitary control and quarantine , including 
issuance of import permits . Per Article 14  of the Decree -Law, t he following items were subject to 
import permits : (i) live animals; (ii) live plants; (iii) animal or vegetal products as specified by law; 
(iv) any other good, or merchandise, animal or vegetal organism as specified by law.  
130.  Licensed i mports (as well as manufacture, import, export, trade, transport and use) of a rms 
and explosives  were subject to licence and prior inspections which were carried out with support 
from the National Police of Timor -Leste (PNTL), according to Article 20(c) of Decree -Law No. 9/2009 
of 18  February  2009 and Decree -Law No. 7/2020 of 19 February 2020 on "Import, Transport, 
Storage, and Use of Explosive Products for Civil Construction, Petroleum and Mineral Activities ". 
The PNTL operate d under the Ministry of the Interior.  
131.  [The representative of Timor -Leste confirmed that, from the date of accession, Timor -Leste 
would not introduce, reintroduce or apply quantitative restrictions on imports or other non -tariff 
measures such as quotas, bans, permits, prior authorization requirements, licensing requirements 
or other requirements or restrictions having equivalent effect that co uld not be justified under the 
provisions of the WTO Agreement. The import licensing regime would be fully in accordance with all 
relevant provisions of the WTO Agreement, including the WTO Agreement on Import Licensing 
Procedures. He further confirmed tha t the legal authority of his Government to suspend imports or 
to apply licensing requirements that could be used to suspend, ban or otherwise restrict the quantity 
of trade would be applied in conformity with the provisions of WTO Agreement, including the General 
Agreement on Tariffs and Trade 1994, the WTO Agreements on Import Licensing Procedures and 
Safeguards, and the Understanding on Balance -of-Payments Provisions of the GATT 1994. 
The Working Party took note of these commitments.]  
- Customs valuation  
132.  The repre sentative of Timor -Leste informed that the  Customs Code (Decree -Law No.  14/2017 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  of 5 April 2017)  provide d for customs valuation in Title VII, Chapter IV  on the "Value of Goods for 
Customs Purposes" , comprising Articles 97 to 101  and Schedule I, which closely followed the rules 
in the WTO Agreement on Customs Valuation, including its interpretative notes . The requirement  of 
the Customs Code was to use transaction value where ver possible , while making allowance for 
situations in which the invoiced price appear ed to be inauthentic. Where the value of an imported 
good as indicated in the invoice was lower than the fair market value of the same good, the Customs 
Authorit y could  calculate the fair market value of the transaction by referring to the value of similar 
transactions among parties operating on a commercial basis (Article 97.1 ). Articles 92.2 and 92.3 
provide d for adjustments to the transaction value in line with Article 8 of t he WTO Agreement on 
Implementation of Article VII of the GATT 1994 (WTO Agreement on Customs Valuation).  
The Government of Timor -Leste was taking steps so that its customs valuation l aw and practice 
operate d in a manner fully consistent with the WTO Agreement on Customs Valuation. 
The Directorate General of Customs had impleme nted an advance ruling system through which 
traders c ould request a ruling with regard to the application of customs valuation criteria for 
a particular case in accordance with the provisions of the WTO Agreement on Customs Valuation. 
Detailed  information on the implementation and administration of the WTO Agree ment on Customs 
Valuation is contained in document WT/ACC/TLS/8.   
133.  A Member asked to  clarify the meaning of "fair market value" and "value of similar transactions 
among parties operating on a commercial basis" . With respect to situations in which the invoic ed 
price appear ed to be inauthentic and the Customs Authorit y could  calculate the fair market value of 
the transaction by referring to the value of similar transactions among parties operating on a 
commercial basis , a Member enquired if this could be the c ause to deny the  transaction value method 
or not.  The representative of Timor -Leste clarified that  Article 97 provided that the customs value 
of the goods was the transaction value, i.e. the price actually paid or payable for the goods when 
they were sold for export to the country of importation . When the Customs Authorit y had a reason 
to doubt the truth or accuracy of the declared customs value and, after having attempted to obtain 
a further explanation or evidence that the declared customs value represented the total amount paid 
or payable for the imported goods, Clause 2 (5), Schedule I required the Customs Authorit y to 
determine the customs value of the goods through the  sequential use of the following methods of 
valuation: (i) transaction value of identical goods (Clause 4); (ii) transaction value of similar goods 
(Claus e 5); (iii) deductive value (Clause 6); (iv)  computed value (Clause 7); (v) residual research 
basis (fallback, Clause 8). Pursuant to Clause 2(6) of Schedule I, at the written request of the 
importer addressed to the Customs Authorit y, the order of applica tion of Clause 6 (deductive value) 
and Clause 7 (computed value) may be reversed. He  added  that his Government welcome d 
indications for improvement of the Customs Code, to ensure  full compliance with the WTO Customs 
Valuation Agreement.  
134.  A Member further as ked if the Government of Timor -Leste intend ed to adopt additional 
legislation concerning the valuation of lost or damaged goods . The representative of Timor -Leste 
confirmed that Schedule I of the Customs Code d id not define any special provisions or practi cal 
arrangements on the valuation of lost or damaged goods. However, there were general principles WT/ACC/SPEC/TLS/5/Rev.1  
 
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  defined in Article 201(2) of the Code that the authorized warehouse keeper was to be responsible 
for the payment of the duties and other charges relating to missing goods, namely by theft or 
robbery, without prejudice to the possible procedure for tax violation, under the law.  He further 
confirmed that the customs valuation methods are  applied in hierarchical order in accordance with 
Article 98 of the Code which applies to all imported goods, including damaged goods . His 
Government intended to develop legislation concerning the valuation of lost or damaged goods.  
135.  A Member underlined tha t Article 10 of the WTO Agreement  on Customs Valuation provided 
that all information which was provided on a confidential basis for the purposes of customs valuation 
could  not be disclosed by the Customs Authorit y without the specific permission of the per son or 
government providing such information except to the extent it was required to be disclosed in the 
context of judicial proceedings. Accordingly, a Member asked to  clarify which laws  of Timor -Leste  
provide d an exception to the  confidentiality requirem ent per Article 17.3 of the Customs Code. 
The representative of Timor -Leste responded that, a ccording to Article 17 of the Code, customs 
officers were bound to professional confidentiality regarding confidential facts, information and 
documents that became  known to them while performing their duties. The confidentiality obligation 
cease d when the  disclosure of facts, information or confidential documents ha d been expressly 
authorized by the  person or entity that provided them , or when ordered by court in judicial 
proceedings or required by another authority duly mandated by law (Decree -Law No. 19/2009 of 
8 April 2009 "Penal Code"; Law No. 17/2011 of 28 December 2011 on "Anti -Money Laundering and 
Counter Financing of Terrorism") .  
136.  A Member enquired if Article 69  of the Customs Code provided for  the right of appeal without 
penalty in accordance with Article 11.1 of the WTO Agreement on Customs Valuation . 
The representative of Timor -Leste confirmed that this was the case. An appeal  could  first be made 
to a higher level in the customs administration, but the importer had the right in the final instance 
to appeal to the judiciary.  He further clarified that Article 69 provided for  two types of appeal on 
Customs decisions: (i) administr ative appeal addressed to the Minister, which f ell on customs 
decisions or on the final decision of the Director -General regarding a complaint;  and (ii) in the course 
of a customs litigation process,  where  a judicial appeal could be  made to the competent c ourt and 
fell on the final decision of the Director -General and that of the Minister.  Pursuant to Article 70.1(a) 
of the Customs Code, decisions or acts of customs on the customs value of the goods were subject 
to appeal, in particular : decisions on custom s duties and other charges on goods, including all 
conclusions or determinations underlying tariff classification, country of origin and customs value 
thereof. Any person who requested a decision from the customs authorities and did not get a reply 
within 30 days could  lodge an appeal.  In accordance with Article 73 of the Customs Code, the time 
limit for filing an administrative appeal was 30 days after notification of Customs decisions. Upon 
receipt of the administrative appeal, the competent authority had to review and confirm, amend or 
annul the contested decision (Article 74.3). If the contested decision was amended or modified, 
customs had to  immediately reimburse or refund any customs duties, other charges or 
administrative penalties which ha d been levied in excess (Article 77.2).  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  137.  With reference to Article 172.2(b)  of the Customs Code, a Member asked what other charges 
may be payable on the g oods.  The representative of Timor -Leste responded that a ll charges that 
were payable on the goods include d: customs duties, sales tax and excise duties (only applicable to 
the goods listed in Annex II of Taxes and Duties Act No. 8/2008) , as described in re levant sections 
of this Report . There were no other cha rges. 
138.  A Member asked to clarify whether  Decision 3.1 on the Treatment of Interest Charges in 
the Customs Value of Imported Goods applie d regardless of whether the finance was provided by 
the seller, a bank or another natural or legal person , and whether it applie d where goods were valued 
under a method other than the transaction value.  The representative of Timor -Leste informed that 
according to Clause 1(5) of Schedule I of the Customs Code, interest on  a financial agreement 
concluded by the buyer relating to the purchase of imported goods could  not be considered as part 
of the customs value in any case where:  (i) the interest rates were different from the price actually 
paid or payable for the goods;  (ii) such goods were actually sold at the price stated as the price 
actually paid or payable;  and (iii)  the buyer, if required, c ould demonstrate that the financial 
agreement was concluded in writing . The declared interest rate d id not exceed the va lue practiced 
at that time for such transactions in the country where the financing was granted.  He confirmed that 
his Government was ready to amend its legislation to fully reflect the requirements of the Decision.  
139.  A Member asked to identify provisions im plement ing Articles 1.2(a) and 1.2(c) of the  WTO 
Agreement on Customs Valuation  concerning related parties. The representative of Timor -Leste 
responded that  Clauses 1 -3 of Schedule I of the Customs Code contain ed such  provisions . Pursuant 
to Clause 1(2) of  Schedule I of the Customs Code , persons were deemed to be related if:  (i) they 
were employees and business managers of each other;  (ii) they were legally recognized partners in 
a business;  (iii) they are an employer and employee; (iv) h e/she was a person who owns, controls 
or holds 5% or more of the voting rights or shares of both;  (v) one of them directly or indirectly 
control led the other;  (vi) b oth were directly or indirectly controlled by a thi rd person;  (vii) t ogether 
they directly or indirectly control led a third person;  (viii) t hey were members of the same family (up 
to the fourth degree).  Persons were considered from the same family when:  (a) they ha d kinship 
relationship up to the fourth de gree;  (b) they were married or maintain a civil union or de facto  
union with one another or if one was married, maintains a civil union or de facto union with a person 
having a kinship relationship up to the fourth degree with the other;  (c) a person has b een adopted 
as the child of another person or of a person with whom that person maintains a relationship of 
kinship up to the third degree.  
140.  He referred to Clause 2(1)(d) of the Customs Code which specified that the customs value of 
the imported goods sh ould be their transaction value , if the buyer and seller of the goods were not 
related at the time the goods were sold for export or, if the buyer and seller were related at that 
time, but their relationship d id not influence the price paid or payable for the  goods; and, the 
importer show ed that the value of the transaction of the goods complies with the requirements set 
forth in Clause 2(2) regarding the sales between related persons . The importer had to provide 
evidence that the transaction value of the good s subject to evaluation, taking into account any WT/ACC/SPEC/TLS/5/Rev.1  
 
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  relevant factors , significantly approximate d the customs value of other goods exported at the same 
time, or in close proximity, to the value of the goods under evaluation, being:  (a) the transaction 
value of the identical or similar goods with respect to the sale of such goods for export to Timor -Leste 
between a seller and a buyer which were not related at the time of sale;  (b) the deductible value of 
the identical or similar goods;  (c) the calculated value of identical or similar goods.  
141.  He further explained that  in line with  Clause 2(3) of Schedule I of the Customs Code, when 
the Customs Authority was of the opinion that the relationship between the buyer and seller of any 
goods influenced the price paid or payable for the goods, the Customs Authority notified the importer 
in writing requesting for t he reasons that made it form such an opinion, giving the importer 
a reasonable chance to present documentation to Customs that prove the relationship did not 
influence such price.  
142.  A Member further asked to identify provisions which implemented Article 6.2 of the WTO 
Agreement on Customs Valuation concerning computed value of appraisement. The representative 
of Timor -Leste responded that Schedule I of t he Customs Code  did not define provision for requiring 
or compelling any person not resident in its own ter ritory to produce for examination, or to allow 
access to, any account or other record for the purposes of determining a computed value. Clause 
7(4) of Schedule I provide d that the amount of profit and general expenses required to determine 
the computed val ue of goods had to  be calculated on a percentage basis and determined on the  basis 
of the information prepared in a manner consistent with the generally accepted accounting principles 
of the country of production of the goods, which was provided by or on b ehalf of the importer of 
the goods subject to assessment. When the information provided was not sufficient, the Customs 
Authorit y could  obtain sufficient information by verifying the sales for export to Timor -Leste of 
the more specific group or variety of goods of the same class or type of goods to obtain more 
information.  
143.  A Member noted that Article 14 of the WTO Agreement on Customs Valuation stated that the 
Interpretative Notes at Annex I and the notes in Annexes II and III form ed an integral part of the 
Agreement , and that articles of the Agreement we re to be read and applied in conjunction with their 
respective interpretative notes. However,  it did not appear that all of the Interpretative Notes ha d 
been implemented in the Customs Code  of Timor -Leste . A Member enquired h ow and when the 
Government of Timor -Leste intend ed to incorporate all Interpretative Notes into its legislation . 
In response, the representative of Timor -Leste informed that his Government had adopted 
Decree -Law No. 87/2022 of 14 December 2022 on "First amendment to Decree -Law No. 14/2017 of 
5 April 2017 "Customs Code" aligning its legislation with the provisions of the Customs Valua tion 
Agreement, including its Interpretative Notes.  
144.  [The representative of Timor -Leste stated that legislation on the valuation of imports for 
customs and taxation purposes conforming to the requirements of the WTO Agreement on 
Implementation of Article VII of the GATT 1994 would be enacted prior to Timor -Leste's accession 
to the WTO.  Timor -Leste would implement the WTO Agreement on Implementation of Article VII of 
the GATT 1994 and Annex I to it (Interpretative Notes) from the date of accession, and if using a WT/ACC/SPEC/TLS/5/Rev.1  
 
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  database as a reference for validating the declared price of a good, Timor -Leste would not use any 
form of minimum value or fixed valuation schedule for customs valuation of goods.  If the transaction 
value offered was disputed, Timor -Leste would release the goods subject to the posting of sufficient 
guarantee for the maximum amount of the customs payments that could be owed.  Timor -Leste 
would also apply Decision 3.1 of the Committee on Customs Valuation (Treatment of Interest 
Charges in the Customs Value of Imported Goods) and paragraph 2 of the Decision on Valuation of 
Carrier Media Bearing Software for Data Processing Equipment (Decision 4.1).  The Working Party 
took note of these commitments.]  
- Rules of origin  
145.  The representativ e of Timor -Leste informed that , until recently,  his Government had not 
applied rules of origin as its measures affecting imports d id not discriminate between imported goods 
based  on their origin . Same  import  customs  duty rates  applied to all products regar dless of their 
source . The Directorate General of Customs determine d the payable duty by valuat ing the goods 
and d id not need to determine  the country of origin of the goods. Accordingly, the Taxes and Duties 
Act did not contain any rules for determining t he origin of goods.  
146.  Articles 94 to 96 of the  Custo ms Code (Decree -Law No. 14/2017  of 5 April  2017) contained  
general rules of classification of goods by country of origin and requirements for certification of 
origin. Decree -Law No. 95/2022 of 28 December 2022 contained the newly legal framework on r ules 
of origin . The Decree -Law was in compliance  with the WTO Ag reement on Rules of Origin as it 
adopt ed the principles of impartiality, and transparency, predictability, consistency and neutrality of 
the rules of origin, as well as with the definitions established in Part I of the Agreement and the 
origin criteria def ined in Part II of the Agreement on "Disciplines to Govern the Application of Rules 
of Origin". It cover ed both preferential and non -preferential rules of origin . The Government was 
developing subsidiary legislation regulating origin certification processe s and procedures, aiming to 
finalise this legislation by the end of the 1st quarter of 2023 .  
147.  The representative of Timor -Leste clarified  that certificates of origin were requested for the 
importation of goods subject to SPS requirements, as described in s ection on "Sanitary and 
phytosanitary measures".  In addition, the certificate of origin was required  in case of suspicion of 
fraud (Article 95 of the Customs Code).  The Decree -Law on Rules of Origin also aimed to determine 
MFN or preferential treatment of products. This new legal framework would be used for trade 
statistics purposes, to implement measures and instruments of commercial policy such as trade 
remedies , and for the application of labelling and marking requirements.  
148.  [The representative of Timor -Leste  stated that, from the date of accession, Timor -Leste's  laws 
and regulations for preferential and non -preferential rules of origin would comply fully with the WTO 
Agreement on Rules of Origin. He further confirmed that Timor-Leste 's rules of origin would be 
notified to the WTO Committee on Rules of Origin. The Working Party took note of these 
commitments. ] WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Pre-Shipment inspection  
149.  Timor -Leste d id not operate a system for conducting pre -shipment inspection and ha d no 
plans t o do so, as it was putting in place a trade facilitation system in accordance with ASEAN 
standards, WTO and WCO requirements.  
150.  [The representative of Timor -Leste  stated that if pre -shipment inspection requirements were 
introduced, they would be temporary a nd in conformity with the requirements of the Agreement on 
Pre-shipment Inspection. Timor -Leste  would take responsibility to ensure that the operations of any 
pre-shipment inspection companies it retained would meet the requirements of the WTO 
Agreements. The Working Party took note of these commitments. ] 
- Other customs f ormalities  
151.  The representative of Timor -Leste added that Timor -Leste was a member of the World 
Customs Organization  (WCO) , since 19 September 2003. It  was not yet a party to the  International 
Convention on the Simplification and Harm onization of Customs Procedures , as amended on 
3 February 2006 ( Revised Kyoto Convention) but base d its customs practice s on international 
standards  such as  ones established by this Convention.  
- Application of i nternal taxes on imports  
152.  The followi ng taxes were applied in Timor -Leste : (i) income tax, (ii) services tax, (i ii) excise  
tax, ( iv) sales tax, and (v) withholding tax . The latter three taxes were applied to imports and 
collected at the time of importation.  
153.  Excise tax was charged on products listed in Schedule II  of the Taxes and Duties Act  and the 
Annual Budget Laws . The  list contained in Schedule II of the Taxes and Duties Act  include d: 
(i) alcoholic beverages, including stout beer with an alcohol content of less than 4.5%, malt beer 
with other alcohol content , wine, vermouth and other fermented beverages ; (ii) ethylic alcohol ; 
(iii) tobacco and tobacco related products ; (iv) g asoline, petroleum and other related petroleum 
products ; (v) l uxury cars ; (vi) a rms and munitions ; (vii) l ighters for smokers ; (viii) s moking pipes ; 
and (ix) r ecreational b oats and private aircrafts . The exact scope of products  and the appl icable 
excise duty rates were set on a yearly basis .  
154.  Thus, according to Article 3 of the State Budget Law for 2023  (Law No. 15/2022 of 21 
December 2022 ), in 2023, the excise tax was applicable to: (i) sugars and confectionery products, 
tariff headings 1701, 1702, 1703 and 1704  (US$ 1.00 per kg); (ii) water, including mineral water 
and aerated water, containing added sugar or other sweetening matter or flavored, and other 
non-alcoholic beverages, except fruit or vegetable juices of heading 20.09 , tariff item 2202 
(US$ 3.00 per liter ); (iii) malt beer with an alcohol content of less than 4.5%, tariff heading 
2203.00.10  (US$ 2.70 per liter ); (iv) malt beer with other alcohol content, tariff item 2203.00.20  
(US$ 4.50 per liter ); (v) to wine, vermout h and other fermented beverages, tariff headings 2204, 
2205 and 2206  (US$ 4.50 per liter ); (vi) tobacco, tariff lines 2401, 2402 and 2403  (US$ 100.00 per 
kg); (vii) passenger cars, tariff heading 8703  (10% of the value exceeding US$ 10,000, 20% of the WT/ACC/SPEC/TLS/5/Rev.1  
 
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  value exceeding US$ 25,000 and 30% of the value exceeding US$ 50,000 ); (viii) captive bolt guns 
for slaughtering animals, tariff heading 9303.90.00, is 10% of the value.  Acquisition by the State or 
other public legal persons, of arms and ammunition for the National Police of Timor -Leste (PNTL), 
the Scientific Police for Criminal Investigation (PCIC) and the FALINTIL – Defence Forces of 
Timor -Leste, was exempt from the payment of the excise tax, as well as other taxes, fees and levies.  
155.  According to Articles  10.1 and 10.2 of the Taxes and Duties Act, excise tax was equally charged 
on both locally  manufactured  and imported products. For locally manufactured products, the excise 
tax was payable when  the goods were removed from a registered manufacturer 's warehous e. For 
imported goods, the excise tax was payable at the time of release of the imported products into 
circulation. G oods exported from Timor -Leste within 28 days after their production or import were 
not subject to excise tax . To be exempted from the tax , a taxpayer had to  submit to documentation 
proving the export of the said goods to the Central Bank of Timor -Leste (CBTL) . It was anticipated 
that the excise tax w ould be maintained as part  the ongoing Fiscal Reform.  
156.  Sales tax was charged  on sales of goods and services by persons whose monthly turnover 
exceed ed the threshold specified in Schedule III  of the Taxes and Duties Act - which was zero as 
the Schedule d id not specify a threshold. Article  15 and Schedule III of the Act  provide d that the tax  
applie d to: (i)  taxable goods imported into Timor -Leste (2.5%); (ii ) taxable goods sold in 
Timor -Leste on or after the date to be specified by the National Parliament  (0%); or (iii) taxable 
services provided in Timor -Leste on or after the date to be specified by the National Parliament  (0%). 
For imported goods, the sales tax was payable at the time of release of the imported produ cts into 
circulation . Goods exempted from import duties under the Taxes and Duties Act, or subject to total 
or partial exemption  under the Customs Code, as specified in paragraphs [116] - [110], were exempt 
from sales tax under Article  16 of the Taxes and Duties Act.   
157.  The representative of Timor -Leste added that his  Government  was aware that the provisions 
on the sales tax imposed on imported products , but not on locally produced goods , were inconsi stent 
with the national treatment requirement in Article III of the GATT 1994. It was anticipated that 
the ongoing Fiscal Reform w ould replace the sales tax with a value -added tax  (VAT)  which would be 
levied equally on both imported and locally produced go ods.  
158.  Payments made by resident entities for goods acquired from non -resident suppliers were 
subject to a 10% withholding tax ( "WHT") from the gross amount of the payment, as provided in 
Article 57 of the Taxes and Duties Act.  This regulation was  being revised under the fiscal reform , 
since it violate d Article III of the GATT 1994 on non -discriminatory application of taxes.   
159.  With respect to the VAT, the representative of Timor -Leste clarified that  it was 
the Government 's intention to introduce thi s tax as part of the ongoing Fiscal Reform by revising 
Law No. 8/2008 of 30 June 2008 on "Taxes and Duties Act" and approving a new  VAT Law  and a 
Tax Proceedings Code , aiming at  achieving  the following objectives: (i) moderniz ing the tax system 
and improv ing tax  collection, by generating information on the key elements of value added (wages 
and profits) and  improving record keeping;  and (ii) rais ing revenue more efficiently, by reducing the WT/ACC/SPEC/TLS/5/Rev.1  
 
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  number of tax instruments that the Government  has to manage in ord er to collect a given level of 
revenue. In so doing, Timor -Leste would consider replacing  the sales tax, the withholding tax and 
the service tax with the VAT ; (iii)  creating a level -playing field and reduc ing the cost of doing 
business, through its inciden ce on consumption and creating incentives for compliance that were 
even across all sectors of the economy; (iv) improv ing the business environment and attract ing 
investment, by inducing increased transparency in  transactions  and turning the country into a 
de-facto tax-free zone for exports;  and (v) reduc ing informality in the economy, by granting 
credit/refund mechanisms to the  informal sector . Such mechanisms would serve as incentives for 
the informal sector to come into the VAT  net. Efficient coverage of the value chain w ould be ensured , 
and the threshold w ould be set at the adequate level.  
160.   To meet the se objectives, the Government of Timor -Leste was considering a relatively simple 
VAT system, comprising the followin g characteristics: (i)  a consumption -based VAT, with the  tax 
falling on final consumers, including issuance of credits to businesses for taxes paid on the  purchase 
of capital goods; (ii) covering all goods and services  that enter into the value chain, thus realizing 
the full incentiv e effect, with full information to be able to make refunds or credits on exports; 
(iii) single rate for VAT, to avoid "cheating" and ease complexity of administration; (iv)  zero-rating 
limited to exports, working as a tool to attract FDI and turning Timor -Leste into a  duty-free zone; 
and, (v) exemption limited to non -processed foods, which do not enter the value chain and can 
therefore be exempted, benefiting more than 60% of most vulnerable families' consumption in 
Timor -Leste.  
161.  In response to a Member's q uestion, he added that t he legislative process for approval of 
the VAT Law had started back in 201 7. Since December 2020 , a joint fiscal and public financial 
management reform package was being  revisited  by the Ministry of Finance through the Tax 
Authority. It planned to seek opinions, comments and feedback from the public, including from legal 
firms, on the draft VAT L aw prior to its submission to the Council of Ministers and the National 
Parliament , in the second  half of 2023 . He confirmed that the draft VAT Law would be submitted to 
the Working Party. The action plan for revision of the Taxes and Duties Act , and approv al of the VAT 
Law and the Tax Proceedings Code  is contained in ANNEX 15.  
162.  [The representative of Timor -Leste  confirmed that by 2025, Timor -Leste 's laws, regulations 
and other measures relating to internal taxes and charges levied on imports would be in full 
conformity with its WTO obligations, including Article III of GATT 1994, and that it would implement 
such laws, regulations and other measures in full conformity with those obligations. The Working 
Party took note of these commitments. ] 
- Anti-dumping, coun tervailing duties, safeguard regimes  
163.  The representative of Timor -Leste informed that Timor -Leste d id not have any anti -dumping  
or countervailing duties or  a safeguard  regime  in place . There was political will of the Government  
to engage and comply with the provisions of the WTO Agreement on Implementation of Article VI of 
the GATT 1994  (Anti-dumping Agreement) , the WTO Agreement on Subsidies and Countervailing WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Measures  (SCM  Agreement)  and the WTO Agreement on Safeguards . The develo pment of policy and 
legislation on trade remedies would be finalized in 202 3. 
164.   A Member requested the Government of Timor -Leste to commit not to impose any 
antidumping, countervailing or safeguard measures, including the initiation of any investigations, 
until its authorities and legislation were notified to the appropriate WTO Committees.  
The representative of Timor -Leste responded that , as Timor -Leste d id not have any anti -dumping, 
countervailing or safeguard framework s in place, any policy decision s on such actions could be taken  
once the appropriate , WTO -consistent  legislation was enacted.   
165.  [The representative of Timor -Leste  confirmed that his Government  would not apply any 
anti-dumping, countervailing or safeguard measures until it had implemented and notified to the 
WTO appropriate laws consistent with the provisions of the  WTO Agreement on Safeguards, the WTO 
Agreement on the Implementation of Article VI of the GATT 1994, and the WTO Agreement on 
Subsidies and Countervailing Measures.  Timor -Leste  would ensure the full conformity of any such 
legislation with the relevant WTO provisions, including Article VI and XIX of the GATT 1994 , the WTO 
Agreement on Safeguards, the WTO Agreement on the Implementation of Article VI of the GATT 
1994, and the WTO Agreement on Subsidies and Countervailing Measures . After such legislation was 
implemented, Timor -Leste  would only apply any anti -dumping duti es, countervailing duties and 
safeguard measures in full conformity with the relevant WTO provisions. The Working Party took 
note of these commitments. ] 
B. EXPORT REGULATION  
- Customs tariffs, fees and charges for services rendered , application of internal  taxes 
to exports   
166.  The representative of Timor -Leste informed that t here were no laws imposing export duties 
and taxes. The Government  of Timor -Leste  did not  intend  to introduce  duties and taxes on exports 
as part of  the Fiscal Reform. The was an administrative fee of US$ 1.00 per export transaction.   
- Quantitative export restrictions , including prohibitions, quotas and licensing 
systems  
167.  There were no laws imposing quantitative export restrictions, prohibitions or quotas. 
This policy was expected to be maintained in the future, as the Government of Timor -Leste was 
working on a draft  Export Promotion Law  as part of the country 's investment policy.  
168.  Natural and legal persons exporting on a commercial basis were required to  register accordin g 
to Decree -Law No. 16/2017 of 17 May 2017 on "Commercial Registration " and to  obtain an 
authorization according to Decree -Law No. 34/201 7 of 27 September 2017  on "Licensing of Economic  
Activities ", as described in section "Trading rights, registration requirements for engaging in 
importing and exporting" . WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Export subsidies  
169.  The representative of Timor -Leste informed that t here were no export financing, subsid y or 
export promotion measures in force. However, t hese types of measures could  be introduced in future 
economic policy and statutes aimed at stimulating exports . The Government was working on 
an Export Promotion Law and respective regulations , based on WTO standards. If introduced, such 
measures would comply with the WTO Agreement on Su bsidies and Countervailing Measures (SCM 
Agreement). He further informed that t here were no laws imposing minimum export prices, 
voluntary export restrictions, or orderly marketing arrangements.  
170.  He further informed that Section II, Articles 242 to 243  of the Customs Code (Decree -Law 
No. 14/2017 of 5 April 2017 ) set forth a customs duty drawback regime . Under this regime,  
the customs charges paid when import ing raw materials, semi -finished products, components, and 
other separate parts and pieces intended for industrial transformation or incorporation into 
manufacturing, were refunded when the final product was exported . Only duly authorized operators  
(customs b rokers) , as determined by the Director General of Customs, were allowed to import goods 
under this regime . According to Article 32.1, Article 34.1(a -e) of the Code, they were required to : 
(i) have valid customs broker licen ce issued by the Director General  of Customs; (ii) have a TIN 
number; (iii) prove that they ha d no outstanding debt, and (iv) prove that they had not been 
convicted in any criminal proceeding or for tax offences . Article 38 require d customs  broker s to 
submit a bond of a minimum of US $ 10,000 and a maximum of US$  150,000.  
171.  [The representative of Timor -Leste  confirmed that any subsidy programmes provided by his 
Government after accession would be administered in conformity with the WTO Agreement on 
Subsidies and Counterva iling Measures, including Article 27, and that all necessary information on 
Timor -Leste' s export subsidies and other notifiable programmes would be notified to the WTO 
Committee on Subsidies and Countervailing Measures according to Article 25  of the Agreem ent. 
The Working Party took note of these commitments. ] 
C. INTERNAL  POLICIES AFFECTING  FOREIGN TRADE IN GOODS   
- Industrial policy , including subsid ies 
172.  The representative of Timor -Leste informed that his Government aimed to promote light 
manufacturing as one of the five priority sectors of the economy. However, the use of the US$, 
relatively high minimum wages and the high cost  of infra structure provide d obstacles to 
manufacturing development in Timor -Leste . In the medium -term, manufacturing development 
would focus on developing industrial capacity by adding value to agricultural products and attracting 
investment in food processing and beverage manufacturing aimed at the domestic market, such as 
coffee , candlenut and forestry products. For this, t he Government  had been develop ing an Industrial 
Policy and Action Plan to promote manufacturing  since 2017 . This Policy , considered for approval by 
the Council of Ministers  in the 4th quarter of 2023 , would be shared with the Working Party as soon 
as it was finalized.  The representative of Timor -Leste confirmed that t he Policy would not include 
any subsidy or tax incentives to promote manufacturing in particular sub -sectors .  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 49 - 
 
  173.  A Member asked a question  on the Action Plan referred to in paragraph  [172]. 
The representative of Timor -Leste further explained that Timor -Leste's manufacturing industry was 
facing a number of constraints, such as limited domestic production capacity, poor access t o finance, 
lack of competitiveness and skills. The action plan to promote manufacturing would foresee 
necessary measures for furthering industrialization that could contribute to job creation, transfer of 
technology and management skills. Specifically, the  plan would focus on the development of light 
manufacturing through efficient utilization of resources, based on processing of materials, 
manufacturing of merchandises, distribution of goods as well as provision of services or any other 
activities that are  specified by the Government as potential contributions to development and 
diversification of the national economy, with the aim of encouraging both local private sector and 
promoting and attracting foreign direct investments (FDI) in the country to create  job opportunities 
and absorb the currently underutilized youth dividend.  
174.  A Member asked how the Government of Timor -Leste envisage d developing the processing of 
agricultural  products  and how it planned to encourage investment in food processing and bever age 
manufacturing . In response, the representative of Timor -Leste referred to Chapters III, V and VI of 
the Private Investment Law (Law No. 15/2017 of 23 August 2017 ) which addresse d the rights and 
guarantees, as well as the  special and fiscal benefits provided  to investors , as described in section 
"Investment regime ". These benefits  were provided to investors in both agriculture an d 
manufacturing (including food processing).  By Decree -Law No. 45/2015 of 30 December 2015, the 
Government had also re -established the Investment and Export Promotion Public Agency 
(TradeInvest Timor -Leste, TITL) as a one -stop-shop for private investments.   
175.  For beverage manufacturing, he also referred to the signing of a Special Investment 
Agreement between the Government and Heineken Asia Pacific  in 2015 . The agreement, that was 
worth US $ 40 million, include d benefits and long -term leasing arrangements, opening the way for 
Heineken to build a beverage production plant that manufactures a range of soft drinks, beer, and 
mineral water, with 200 direct and 800 indirect jobs. Timor -Leste  remain ed attractive to mor e 
investments in the beverage industry.  
176.  [The representative of Timor -Leste confirmed that Timor -Leste would administer its subsidy 
programmes in full conformity with the WTO  Agreement on Subsidies and Countervailing Measures, 
including Article 3.1(b) and Article  27.2. All necessary information on these subsidy programmes 
would be notified to the WTO Committee on Subsidies and Countervailing Measures in accordance 
with Article  25 of the  WTO Agreement on Subsidies and Countervailing Measures. The Working Par ty 
took note of these commitments. ] 
- Technical barriers to t rade, standards and certification  
177.  The representative of Timor -Leste informed that there were no technical regulations , 
standards and c onformity assessment procedures in place, such as testing, inspection or 
certification, either for domestic or imported goods.  However, the Government was interested in 
developing and approving such standards to ensure conformity with the WTO Agreement on WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Technical Barriers to Trade (TBT Agreement)  and the respective ASEAN agreement.  
178.  In response to a question from a Member on the Government's plans for the development of 
the necessary legislation and regulations to comply with the TBT Agreement , he informed that t he 
Government was in the process of building the legal and institutional framework, which w ould include 
appropriate legislation, technical regulations, standards and conformity assessment procedures , in 
conformity with the TBT Agreement , as well as  the est ablishment of an Enquiry Point and a 
Notification Authorit y as transparency mechanisms required by the TBT Agreement . The Action Plan 
for the Implementation of the TBT Agreement is provided in ANNEX 16. Responding to a question, 
he elaborated that his Government had been conduc ting an inventory to determine what specific 
aspects the new legislation must cover . It included, among others: (i) e stablishment of the National 
Quality Council;  (ii) m etrology, standards and conformity assessment systems and procedures;  
(iii) metrology verif ication services;  (iv) g uidelines for inspection and certification schemes;  
(v) national quality systems;  (vi) a ccreditation criteria;  (vii) n ational standards; and  (viii) t echnical 
regulations .  
179.  He added that, a s part of these efforts , the Institute of Quality of Timor -Leste (IQTL) had been 
created by Decree -Law No. 10/2018 of 9 April 2018 as the national regulatory entity for qualification, 
standardization and metrology. Its mission was to implement and manage the national quality 
system a nd other regulatory qualification systems that were conferred on it by law, to promote and 
coordinate activities that aim to demonstrate credibility of the action of economic agents, as well as 
to develop actions necessary for its function as a national me trology laboratory . The Institute was 
in the process of implementation.  In response to a question from a Member, he elaborated that the 
duties of the IQTL were to:  
• Implement, manage and coordinate a national quality system, with a view to integrating all 
the relevant components for improving the quality of products and services, contributing to 
increasing productivity, competitiveness and innovation in the public and private sectors;  
• Propose to the Government measures leading to the definit ion of national policies related to 
the national quality system, within the scope of standardization, qualification and metrology;  
• Implement and manage the national metrology laboratory in the scientific and applied 
components, ensuring the realization, ma intenance and development of national standards of 
measurement units and their traceability to the International System (IS) , promoting its 
dissemination throughout the national territory;  
• Ensure and manage the legal metrological control system for measuri ng instruments, 
recognize competent entities for the delegated exercise of that control, whenever this proves 
necessary to guarantee national coverage and coordinate the network constituted by those 
entities;  
• Establish the quality identification marks of t he national quality system and ensure 
the respective management;  
• Promote and develop training actions in the field of quality, namely qualification, 
standardization and metrology;  
• Guarantee and develop quality through the establishment of protocols and strategic 
partnerships with public and private entities, as well as scientific and technological entities WT/ACC/SPEC/TLS/5/Rev.1  
 
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  that voluntarily , or through inherent functions , join efforts to define princi ples and means that 
aim at quality standards;  
• Coordinate, qualify and recognize public sector and private entities as sectorial standardization 
bodies in which the IQTL delegate d technical standardization functions in sectors of specific 
activity;  
• Develop cooperation and service provision activities to national and foreign entities interested 
in the field of quality;  
• Ensure and promote the participation of Timor -Leste as a member of organizations, working 
groups and other international bodies within the sco pe of its powers and competences;  and 
• Ensure the participation of Timor -Leste as a member of international metrology organizations 
and the obligations arising therefrom, namely participation in the  respective works.  
180.  Responding regarding the plan to become a member of the International Standards 
Organization (ISO), the representative of Timor -Leste added that the IQTL had the competence to 
adhere to the International Standards Organization (ISO), but the Institution was not yet fully 
functional. The IQTL had been working in collaboration with the Authority of Inspection and 
Supervision of Economic, Sanitary and Food Activity  (AIFAESA ) to facilitate meetings with the ISO 
to ensure that Timor -Leste was complying to the  ISO standards. Such efforts reflect ed Timor -Leste 's 
commitment to becom e a member of the ISO in the near future.  The Government, through the 
NQCI , would put the necessary  efforts to promote coordination with the relevant bodies  (including 
the Ministry of Tourism, Commerce and Industry, Ministry of Health, Ministry of Agriculture and 
Fisheries, Ministry of Public Works, AIFAESA, National Authority for Petroleum and Minerals , and the 
private sector)  to ensure  alignment with the ISO standards. At the same time, to achieve compl iance 
with the ISO standards , the IQTL require d further assistance in developing the  necessary facilities, 
including developing a standardized laborator y to facilitate commercial activities , and in 
strengthen ing human resources capacity in the specific areas.  
181.  Regarding the establishment of the TBT enquiry point  he added that his Government had 
established the TBT enquiry point within the structure of  the IQTL:  
Name:   Rosito de Sousa Monteiro  
Position:   President of Quality Institute of Timor -Leste  
Address:   Comoro, Av. Pres. Nicolau Lobato, Díli, Timor Plaza, 3 rd Floor, QITL Office  
Phone:   +670 7756 0067  
E-mail address:  sousarosito82@gmail.com  
182.  In addition , he informed that,  in order to ensure compliance with the TBT Agreement, 
Timor -Leste would need to  establish  conformity assessment infrastructure, which should  also include 
accreditation of Testing, Calibration and Inspection Conformity Assessment Bodies (CAB);  establish  
a Notification Authority; and  to tackle participation in  the activities of the  international standards 
setting bodies activities.  
183.  Responding to a Member's question on whether his Government would  seek technical 
assistance to participate in international standards -setting bodies ' activities such as those under 
Codex , he informed that since Timor -Leste ha d become a member of Codex Alimentarius in March WT/ACC/SPEC/TLS/5/Rev.1  
 
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  2017, it was  open to seek  such technical assistance , namely, on training in the areas of: (i) Food 
Safety, Quality and Standards; and  (ii) TBT Training of Trainers (ToT) programme.  
184.  [The representative of Timor-Leste  confirmed that Timor -Leste  would progressively implement 
the WTO Agreement on Technical Barriers to Trade in accordance with the action plan set out in 
ANNEX 16. He furth er confirmed that during the transition period, existing measures would  be 
applied on a non -discriminatory basis, i.e., providing for national treatment and MFN treatment for 
all imports.  Measures in place at the time of accession and already consistent with the provisions of 
the WTO Agreement on Technical Barriers to Trade would not be subject to transition. 
Timor -Leste  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 WTO 
Agreement on Technical Barriers to Trade than existed at the date of accession. Full  implementation 
of the WTO Agreement on Technical Barriers  to Trade would start from 1 January 2026  withou t 
recourse to any further transition period.  The Working Party took note of this commitment. ] 
- Sanitary and phytosanitary measures  
185.  Timor -Leste 's sanitary and phytosanitary measures were regulated by Decree -Law 
No. 21/2003 of 31 December  2003 on  "Quarantine and Sanitary Control on Goods Imported and 
Exported ". Government Decree No. 1/2006 of 20 September 2006 established the Rules and 
Procedures to Implement Decree -Law No.  21/2003 on the Exportation and Importation of Goods 
subjects to Quarantine Control (inspection, isolation, observation, treatment, detention, prohibit 
from enter ing the country, destroy and release).  
186.  The National Directorate of Quarantine Services  and Biosecurity , which was part of the  Ministry 
of Agriculture and Fisheries, administer ed the Law. Its staff was empowered to supervise and inspect  
any area and buildings that were not a person 's residence, ship or aircraft , to conduct sanitary and 
phytosanitary control. The role and responsibility of the Directorate , as well as the procedure for the 
issuance of sanitary  and phytosanitary certificates, were defined in Decree -Law No. 1/200 6. 
187.  The Ministry of Health was the Food Safety Authority of Timor -Leste, in charge of food safety 
measures.  The Authority of Inspection and Supervision of Economic, Sanitary and Food Activity 
(AIFAESA) , established by Decree -Law No. 26/2016 of 29 June 2016 , was responsible for 
the enforcement of Decree -Law No. 28/2011 of 20 July 2011 on "Food Industry and Marketing 
Regulation" that subjected imports of processed food products to sanitary regulation, guided by 
the Ministry of Health and the Ministry of Tourism, Commerce and Industry (MTCI).  
188.  The representative of Timor -Leste informed that T imor-Leste had become a member of 
the International Office for Epizootics, the World Organization for Animal Health ( WOAH/ OIE) in 
November  2010 and a member of Codex Alimentarius  Commission in March 2017 . It had since been 
actively participating and working on ensuring its compliance with the relevant standards . 
189.  Timor -Leste  was not  yet a party to the International Plant Protection Convention (IPPC) . 
Responding to a Member 's question , he added that the Government has put forth significant effort WT/ACC/SPEC/TLS/5/Rev.1  
 
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  to comply with the IPPC by participating as an observer. However, the Government recognized a 
few challenges before being in full compliance with the IPPC requ irements  (which included provision 
of the basic infrastructure to establish a national laboratory ). These included:  lack of basic facilities, 
including a laboratory and quarantine installation facilities at the entry point (for treatment, isolation 
during the incubation period, etc) ; lack of qualified human resources in the specific areas, in 
particular to conduct tests on imported products ; as well as lack of p ermanent funds necessary to 
operate the quarantine facilities.  Having said that, Timor -Leste ha d shown its full commitment to 
IPPC through its membership to the Asia and Pacific Plant Protection Commission (APPPC) since 
November 2012 with a hope to become a member of the IPPC, once the  necessary infrastructure  
was in place  and human resources capacit y was strengthened . Timor -Leste was open to Members'  
assistance to accelerate its IPPC  membership.  Timor -Leste's IPPC contact point had been registered 
on the IPPC website since 2008.1  
190.  He informed that Timor -Leste claim ed freedom from foot and mouth dise ase, bovine 
spongiform encephalopathy, rabies and highly pathogenic avian influenza (bird flu) and impose d 
restrictions against the import of animals or products that may introduce these diseases. 
Accordingly, for public health reasons , the importation of the following was prohibited: (i) any 
proteins for animal feeding containing meat powder, bone powder, blo od powder, or fat from 
mammal tissues ; (ii) poultry powder for ruminant feeding;  (iii) a ny products from cows, sheep, or 
goats showing clinical signs of spongiform encephalopathy ; (iv) a ny animals or any products of any 
animals showing clinical symptoms of  certain diseases including, for example, foot -and-mouth 
disease and bird flu; and (v) n on-transformed fat . Import permits could also not be issued in respect 
of: (i) any items listed in the Convention on International Trade in Endangered Species of Wild F auna 
and Flora (CITES, Article 72); (ii) any items originating from a country or areas where there was an 
ongoing occurrence of quarantine -related plagues or diseases (Article 72); and (iii) exotic seeds 
included in a list to be approved by a Ministerial D iploma (Article 82) .  
191.  Apart from the prohibited imports indicated in paragraph [ 190], any importation of agricultural 
product  to Timor -Leste was allowed subject to import permit . Prior to importing (i) live animals; 
(ii) live plants; (iii) animal or vegetal products as speci fied by law; and (iv) any other good, or 
merchandise, animal, or vegetal organism as specified in Article  14 of Decree -Law No. 21/2003 , 
importers had to  obtain an import permit  from the Directorate of Quarantine Services  and 
Biosecurity . While the specific laws or regulations list ing such products were yet to be developed , 
this requirement was  based on the lists approved by the WOAH/OIE and IPPC.  Applications for import 
permits had to be  accompanied by a  certificate of origin. Import permits  were subject to compliance 
with conditions and requirements including specification of origin, inspections, treatments, points of  
entry and exit, proofs, analyses and tests, or isolation in the country of export in a quarantine facility . 
They also had to contain  the import conditions specific to the case and the international standards 
and recommendations.  
192.  Responding to a Member's request for additional information on this procedure, he  elaborated 
 
1 https://www.ippc.int/en/countries/timor -leste/.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  that the application form require d the address and contact details of the exporter and importer and 
the country of origin. For each  imported  item, the applicant was required to list the  country of origin, 
the common product name, the scientific names, a description of the items, and the qu antity or 
volume to be imported.  In all cases the importer had to provide details on the  routing, transport 
mode, and expected date of arrival. Importers w ere also required to specify if they had access to a 
registered Quarantine Approved Premise (QAP). Wh en the importer (or the clearing agent) submitted 
the completed application form, the Department of Quarantine contacted their counterpart in the 
exporting country to request verification. Each import required a  separate permit and had to undergo 
a full ve rification process.  The decision to grant an import permit took place within 3 working days. 
Import permit s were signed by the Directorate of Quarantine  and Biosecurity . 
193.  He further explained that importation could be made immediately upon receipt of an imp ort 
permit. According to Article 56 of Government Decree  No. 1/2006 , the permit  was valid until 
the arrival of  the imported goods. At the actual importation, the import permit was to be presented 
to the C ustoms Authorit y for clearance procedures according to the ASYCUDA -World System. 
The Customs Authorit y had the right to detain any products should there be no permit  for the  specific 
products under these criteria.  At the same time, the Government was committed to comply w ith the 
SPS Agreement, in particular with Annex C(1)(b) . Responding to an invitation from a  Member to 
reconsider this import procedure and replace it by a system of approved countries and 
establishments which was less cumbersome, more transparent and c ould provide appropriate 
guarantees , the representative of Timor -Leste confirmed that the existing proc edure would be 
revised as soon as appropriate facilities were in place in conformity with the international standards.  
194.  Responding to a question on the requirement for applications for import permits to be  
accompanied by a certificate of origin , the represe ntative of Timor -Leste reflected on Timor -Leste 's 
minimum infrastructure conditions to prevent disease outbreak in the country . In this situation, 
the Government assessed  that requiring such a certificate would be  the most effective measure for 
preventing the importation of diseases. He believed this requirement was in compliance with 
the rules set under the OIE and IPPC standards.  
195.  To obtain an import permit , an importer had to  pay the relevant fees and charges  and present 
the following documents to the Directorate of Quarantine Services  and Biosecurity  to release the 
cargo:   
• For live animals : a zoo-sanitary  certificate issued by the competent authority of the  exporting 
country and signed by the veterinary office  who carried out the inspection;   
• For plants and derivative products : a phytosanitary certificat e issued by the competent 
authority of the exporting country and signed by a competent official conducting the  respective 
inspection. For any live plants, it was also necessary to comply with a pre -export quarantine 
regime in the exporting country and a post import quarantine regime.  
196.  Decree -Law No. 21/2003 further  prescribe d specific rules for the following  imports:   
• Live animals: imported animals had to  be subject to a quarantine period of at least 14  days 
(Article 30) and a veterinary inspection (Article 31);   WT/ACC/SPEC/TLS/5/Rev.1  
 
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  • Incubation eggs: the imports had to  be sourced from a country that has been approved by 
the Directorate of Quarantine Services  and Biosecurity  (Article 33);   
• Hen eggs for consumption: had to  be free of diseases or contaminations such as feather and 
feces (Article 34);   
• Fresh fish for human consumption: s hould  not be subject to an import licen ce (Article  35.1);   
• Dried fish: upon arrival imports had to  be inspected for detection of insect infestation 
(Article  35.3);   
• Canned meat or hermetically sealed packs of meat not requiring refrigeration : could  be 
imported without restrictions (Article 36.1);  
• Any other import of fresh meat : without restrictions as long as (a) it was packed in 
hermetically sealed packages or containers, weigh ing less than 5% of its meat weight and 
require d refrigeration in order to maintain quality , or (b) it was canned meat that did not 
require refrigeration (Article 36.2) ;  
• Milk and milk products: had to  be derived from pasteurized milk (Article 37);   
• Animal va ccines: required prior authorization from the Directorate of Quarantine  and 
Biosecurity  for some vaccines  (Article 38) , impo rt require d an import licen ce;  
• Animal skins and skin -made products: imported finished products were subject to veterinary 
inspectio n (Article 39);   
• Live plants and vegetal products: had to  be accompanied by a phytosanitary certificate issued 
by the competent authority of the exporting country (Article 42.1);   
• Imports of machinery, equipment and used vehicles: were subject to sanita ry inspection 
(Article 44); and , 
• Import of soil samples: subject to an import licen ce (Article 45).  
197.  Responding to a Member's question on these rules, he informed that  the Government was 
willing to revisit the  existing  framework in light of the SPS Agreement.  With regard to item 
(vii), he clarified that t he weight requirements for imports of fresh meat were merely for statistical 
purposes to measure the annual consumption capacity of meat in the country.  This measure w ould 
be revised as soon as appropriate fac ilities were in place in conformity with the international 
standards.  
198.  He added that t he Ministry of Agriculture and Fisheries and the Minist ry of Finance could  issue 
a joint ministerial statute defining service fees connected to the granting of import permits , issuance 
of certificates, or any other fees for services . To date , no action ha d been taken on introducing such 
fees. Should any fees be charged in the fu ture, the fees would be based on a  recovery of the actual 
costs,  in line with Article VIII of the GATT 1994 , while the Government would ensure that the 
methodology to calculate these costs was publicly available or provided upon request. Such 
methodology w ould be applied in a transparent manner.  Besides , since the whole quarantine and 
sanitary control framework was under review, the Government of Timor -Leste was revisiting the 
issue of service fees and costs in the context of such review.   WT/ACC/SPEC/TLS/5/Rev.1  
 
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  199.  The representativ e of Timor -Leste added that Timor -Leste currently  import ed over 
250 commodities from many countries. Each import require d an import risk analysis to assess the 
risk posed and to establish the need for import conditions to manage the risk . The risk analysis 
process was applied in accordance with the rules applied by the OIE and the IPPC. At the same time, 
due to the existing lack of infrastructure and adequate human resource capacity, the procedures 
were adjusted to the national conditions, whereby the scientific procedures, including pre -inspection 
measures of products, were defined together with an exporting country. Prior t o developing an 
import risk analysis, both countries were required to sign an agreement to safeguard both parties' 
concerns in conducting a diagnostic risk assessment measure. He re -confirmed his Government's 
commitment to take into consideration exporting  Members' equivalent sanitary or phytosanitary 
measures, in accordance with the international measures set by the OIE and the IPPC.  
200.  He added that his  Government was aware that sanitary and phytosanitary requirements was 
an area of expertise that required duly-trained capacity in order to fully enforce the Law. It hoped 
that the WTO accession process would result in such enhanced capacity to handle SPS issues.  
The Government was  committed to push for the necessary reforms to be in conformity with the 
standa rds of Codex, OIE, and IPPC as it develop ed its SPS regulations . He further informed that the 
Government  was reviewing Decree -Law No. 21/2003 and had developed an Action Plan for the 
Implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures 
(the SPS Agreement). This Plan is provided to the Working Party in document WT/ACC/TLS/12. The 
International  Finance Corp oration (IFC, member of the World Bank Group) was providing technical 
assistance to the Government to implement a project aiming to draft the Decree -Laws on Quarantine  
(on Animal Health and Plant Health) . These draft Decree -Laws that, inter alia , defined the 
competences of the Veterinary  Authority (VA) and the National Plant Protection Office (NPPO),  have 
been provided to the Working Party for review.  The Government was also drafting an Action plan for 
implementation of obligations under the IPPC.  
201.  He added that i mport permits relating to live plants could not  be issued to private persons or 
organizations (i.e., persons other than Government services, p ublic institutions, and 
non-Governmental organizations involved in projects to improve agriculture and forests approved 
by the Government). Import of the following species of seeds was subject to import authorisations : 
(i) rice; (ii)  corn; (iii) coffee; (iv) manioc; (v) bananas; (vi) citrus fruits; (vii) mango; (viii) coconut; 
(ix) phaseolus vulgaris (the common bean); (x) vigna; (xi) garlic; (xii) onion; (xiii) common potato; 
(xiv) pineapple; and, (xv) avocado pear.  In response  to a Member's ques tion, he clarified that these 
commodities had been selected according to the rules set by the IPPC, as they were identified to 
pose higher risks to human, animal or plant health. Other products that were not part of this list had 
been identified to pose lo wer health risks, and thus did not require pre -clearance inspections prior 
to importation. These risks had been selected in accordance with to the lists identified by the IPPC.  
202.  Referring to Decree -Law No. 26/2016 , a Member asked if AIFAESA was also envisag ed as the 
national standards setting body. The representative of Timor -Leste responded that  AIFAESA had 
been established by Decree -Law No. 26/2016 of 29 June 2016  with the mandate to ensure quality WT/ACC/SPEC/TLS/5/Rev.1  
 
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  control activities of foodstuffs, conditions of transport,  health and places where they were produced 
and sold.  At the same time, a s described in section "Technical barriers to trade", Institute  for Quality 
of Timor -Leste  (IQTL) was the body responsible for defining the national standards. AIFAESA had 
the competence to execute the national standards defined by the NQCI  through inspection and 
supervision.  
203.  Responding to a question on implementing regulations relating to non-compliance , 
the representative of Timor -Leste informed that the VA and the NPPO had t he authority to notify 
non-compliance. While the National  Directorate of Quarantine and Biosecurity and the National 
Directorate of Animal Health work ed in coordinatio n to conduct inspections on the quality of 
products , their results w ould be submitted  to the  VA and the  NPPO for further action . This process 
would be applied gradually once the new Decree -Laws had been approved with the assistance of 
related experts to ensure its full compliance.  
204.  A Member  also requested to  describe the coordination among the AIFAESA , the VA and 
the NPPO, including  on the SPS enquiry point , and to  identify any proposed additional ar eas of 
coordination between the VA and the NPPO , apart from those described for coordination through 
AIFAESA  in Article 16 of the draft Laws . The representative of Timor -Leste clarified that 
the Directorate for Quarantine under the Ministry of Agriculture and Fisheries acted  as the entry 
point for import and export of plant and animal products. The VA and the NPPO  would  coordinate  
directly within the same Ministry. They would work in  coordination with AIFAESA to conduct 
inspections for products exceeding their date of expiry for the purpose of protecting human, animal, 
and plant health. Meanwhile, the Department of Quarantine w ould exercise its role to control every 
product entering at the border u nder the incubation process depending on the sample result at 
the laboratory.  Outside of the areas of coordination through AIFAESA, additional areas of 
coordination would be defined as follows : 
• Ministry of Health: all medicine for animals should have prior  authorization from the Ministry 
of Health ; 
• Ministry of Tourism, Commerce and Industry (MTCI): MTCI w ould provide the rules of origin 
certificate for products to be exported in relation to animal and plant products ; 
• Registry Service and Business Verificati on (SERVE): all commercial activities, including 
importing and exporting, should obtain business licensing authorization from SERVE, where 
the licen ce should already list out export/import activities . This document w ould be required 
for inspection by the C ustoms Authority ; 
• Agency for Export Promotion and Investment (TradeInvest): responsible  authorities w ould 
also coordinate with TradeInvest on matters related to investment certificates ; 
• Chamber of Commerce of Timor -Leste (CCI -TL): would be  obliged to follow the rules set by 
the VA and NPPO on the procedures for export and import of animal and animal products, and 
plant and plant products.  
205.  With regards to the SPS enquiry point , his Governm ent had established a single Contact Point 
for Information ("enquiry point") that was currently based in the Ministry of Agriculture and Fisheries, 
with the below  contact points :  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  a) Chief Veterinary Officer (CVO):  
Name:  Dr Joanita Bendita da Costa Jong 
Position:  National Director of Veterinary/ OIE Permanent Delegate , Ministry of 
Agriculture and Fisheries  
Address:   
Phone:  Presidente Nicolao Lobato, No 5 Comoro – Dili, Timor -Leste  
+670  7754 6394 
E-mail address:  katitadog_2001@yahoo.com, lihirika@gmail.com   
b) Plants:  
 
Name:  Mr Americo Alves Brito  
Position:  Chief of Department for Plant Protection, Department of Plant Protection for 
Agriculture  and Horticulture, National Directorate of Agriculture and 
Horticulture, Ministry of Agriculture and Fisheries  
Address:  
Phone:  Presidente Nicolao Lobato, No 5 Comoro – Dili, Timor -Leste  
+670 7766 5056  
E-mail: bamerico@hotmail.com, americoalvesbrito@yahoo.com  
The VA would maintain a separate OIE contact point, while NPPO would maintain an IPPC contact 
point once Timor -Leste becomes a contracting party to the IPPC . For other SPS measures, such as 
on food safety, the designated enquir y points coordinate d with the Ministry of Health, the Authority 
for Inspection and Supervision of Economic Activity and Food Safety (AIFAESA) and the Institute  of 
Quality  of Timor -Leste IQTL) to facilitate their input on the subject matter . 
206.  He added that t he authorities responsible for making notifications to the WTO and ensuring 
transparency obligations would be in the Ministry of Agriculture and Fisheries, such as the Directorate 
for Quarantine and the Directorate for Veterinary.   
207.  A Member further enquire d about the transparency requirements in place in Timor -Leste, 
including with respect to publishing draft regulations  related to SPS , solicit ing comments from 
interested parties, and tak ing those comments into account before publishing the final regulation s. 
The representative of Timor -Leste responded that the Government was yet to develop any draft 
regulations on such transparency requirements . However, considering Timor -Leste 's commitment to 
harmonize its framework with the international standards under t he OIE and the IPPC, it would 
ensure that any draft regulations  would be consulted with the relevant partners at an early stage for 
comments before publishing and adopting such regulations.  Further, he informed that while 
the Government of Timor -Leste stil l applied a manual system in publishing the lists of goods subject 
to veterinary  and phytosanitary control, including those that required import permits, veterinary  and 
phytosanitary certificates or any other documents, it was committed to adopting an onli ne platform 
to publish the above lists in future.  
208.  A Member also requested to explain where the conditions to import  animals and animal 
products and  plant and plant products would  be laid down. The representative of Timor -Leste  
informed that these import requirements  would be laid down in a Ministerial Diploma, once the draft 
Decree -Laws were in place . Such a Diploma w ould also elaborate on the derivative products. 
He confirmed that these requirements  would be consistent with the OIE and IPPC standa rds. 
The draft Diploma has been provided to the Working Party.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  209.  Further, a Member underlined that, i n accordance with the IPPC, it was the responsibility of 
the NPPO of the exporting party to ensure that the products compl ied with the requirements of 
the importing party.  Similarly, veterinary inspection of goods should be the responsibility of 
the veterinary authorities of the exporting country.  A Member asked the representative of  
Timor -Leste to clarify if and where pre -clearance inspections w ould be requested . The representative 
of Timor -Leste recognized the matter raised by a Member. He informed that,  to be precautious of 
risks that could  be imposed from a  disease  outbreak from any imported country, Timor -Leste 
recognize d the importance of preven tive measures. In practice, Timor -Leste through the  VA or  NPPO 
required  pre-clearance inspections to be conducted  upon request or only when there was a disease 
outbreak in an importing country, where pre -inspection w ould be conducted by the competent 
Autho rity. At the same time, the Government was committed to replace the current system with 
Members' assistance in providing basic facilities to prevent disease outbreak in the country , to be in 
accordance with the procedures set under the  OIE and the  IPPC.  Further, the representative of 
Timor -Leste confirmed that in the event a n exporting country had a localized outbreak of a  disease 
or pest, the Government of  Timor -Leste would allow for regionalization of imports from areas shown 
to be free from the disease/p est, provided that the imported goods were properly certified according 
to the standards set under the OIE and the IPPC. If an exporting country had regional isolation 
methods in place to ensure that these types of outbreaks were centralized, controlled an d mitigated, 
the Government of Timor -Leste would allow imports of products from such exporting country, 
including seeds, with appropriate sanitary/phytosanitary documentation.  
210.  Responding to a request from a Member to elaborate on the pre -clearance inspecti on process, 
the representative of Timor -Leste added that, in all cases, an importer had to obtain an import 
permit prior to the pre -clearance inspection. The process included conducting a thorough review of 
the imported goods based on importers' import aut horizations.  The Government ha d built a standard 
laboratory to conduct basic tests in the country . However, should a test require a complex procedure, 
a sample w ould be sent to the designated laboratory abroad or any location that has been accredited 
by OIE /IPPC  standard s to ensure that no risks w ould be posed by the products . The prescribed 
testing procedures, including the process for sampling and the appeals proces s for disputing a claim, 
included: (i)  quarantine measures for inspections and detainment; (ii) treatment, installation and 
isolation processes (between 14 to 21 days);  (iii) requisition process es (measures to be taken at the 
port); and (iv) should any pro ducts be identified to have contained any diseases that pose risks to 
human, animal or plant health, tak ing the necessary measures to reship or burn the  identified 
products.  The prescribed sampling procedures and methodologies, including the  process for 
sampling and the appeals process for disputing claim s, follow ed the guidelines set under the 
OIE/IPPC.  He added that, w hile Timor -Leste was yet to join the ISO, the Government would put the 
necessary efforts to promote coordination and collaboration with the  relevant bodies to be aligned 
and compliant with the ISO standards, including standards detailed in ISO 17025: "Testing and 
Calibration Laboratories ". Nevertheless, to be ISO -compliant, the Government still required further 
assistance in developing the ne cessary facilities, including an  internationally accredited laboratory.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  211.  He added that, in the implementation of the Government Decree No. 1/2006 and other 
applicable legislation, the following quarantine measures could be taken: (i) inspection; (ii) isolation; 
(iii) observation; (iv) treatment; (v) detention; (vi) refusal to enter the country; (vii) destruction; 
or, (viii) release. Any incident that affected or had repercussions on health control had to be 
immediately reported to the Director who woul d decide on the measures to be taken.  
212.  A Member asked to confirm if post-entry treatment for horticultural imports w ould be an  option 
included in "phytosanitary treatment in order to remove the risk"  under the draft Decree -Law. 
The representative of Timor -Leste confirmed that this would be the case . 
213.  A Member stressed that while, according the draft Decree -Law, the VA could regulate the  use 
of coccidiostats, antibiotics, growth promoters hormones and other medication and therapeutical 
substance in feed , the u se of antibiotic s in animal production (including in particular the use as 
growth promoters ), was an important factor in the development of anti -microbial resistance. This 
Member  invite d the Government of Timor -Leste to ban the use of antibiotic s for growth promotion 
or develop a plan for phasing out such use.  The representative of Timor -Leste took note of the 
Member 's proposal and clarified that, i n practice, the Government of Timor -Leste through the VA 
had been exercising its competence to ban t he importation of antibiotic and growth promotion 
substances in accordance with the OIE standard.  He also clarified that the Decree -Law envisaged a 
prohibition of non-therapeutic uses of antimicrobials . This criterion was based on C odex, which 
recommend ed that "medically important antimicrobials should only not be used for growth promotion 
unless potential risks to human health have been evaluated". Thus, his Government ha d decided to 
prohibit non -therapeutic uses of antimicrobials under all circumstances d ue to the current lack of 
national capacities to evaluate the potential risks . 
214.  A Member enquired about the maximum residue level (MRL) regime applied in Timor -Leste , 
as well as its intention to adopt Codex MRLs and the deferral pathway for imports if there  was no 
Codex MRL. The representative of Timor -Leste confirmed that, as a member of Codex Alimentarius 
since March 2017, Timor -Leste was obliged to follow the guidelines set under Codex Alimentarius 
MRLs. Having said that, the Government  was yet to develop specific rules regarding MRLs . 
It remain ed committed to adopt the Codex Alimentarius MRLs in the future , once the draft 
Decree -Law on  Quarantine  (Animal Health) was approved and effectively implemented . In this light, 
Timor -Leste still adopt ed imported tolerance and the deferral pathway for import procedures in 
accordance with the rules set under the IPPC and the general rules for import  procedures in the 
country, while recognizing  the inspection and certification systems as fundamentally important and 
widely used means of food control systems . He added his Government was planning to  establish a 
list of MRLs for veterinary drugs by 2024 .  
215.  Responding to a question on the Official Program for the Control of Pesticide Residues in 
Products of Plant Origin, as provided in Article 16(m) of Decree -Law No. 26/2016, the representative 
of Timor -Leste informed that his Government had drafted the Law on Pesticides with the  technical 
assistance of the FAO. This draft Law would list out guidelines for authorities that have 
the competence over the application of pesticides. Once this Law was approved, the authorities WT/ACC/SPEC/TLS/5/Rev.1  
 
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  under the Ministry of Agriculture and Fisheries w ould work in co ordination with the AIFAESA to 
regulate the guidelines established by the Law.  
216.  A Member also asked  when the Government of Timor -Leste would publish its list s of regulated 
pests  and notifiable diseases . The representative of Timor -Leste responded that such lists would be 
published as soon as appropriate facilities were in place. The Government was open to the  necessary 
assistance from Members to accelerate Timor -Leste 's compliance to adopt these system s. 
217.  A Member also noted that "living modified organisms" were included within the regulatory 
scope of the NPPO and asked if the Government of Timor -Leste would accept the validity of 
regulatory authorities' risk assessments and Codex guidelines as sufficient f or import of agricultural 
biotechnology products. The representative of Timor -Leste confirmed that the Government was 
committed to push for the necessary reforms to accept the validity of regulatory authorities ' risk 
assessments and Codex guidelines as suf ficient for import of agricultural biotechnology products.  
218.  A Member also noted Article 27(2) of the Framework Law on Environment (Decree -Law 
No. 26/2012 of 4 July 2012) stating measures would be taken to prevent and minimize risks to 
biological diversity a nd human health from genetically modified living organisms. The Member asked 
to clarify how such risks would be determined  and what would be the basis for measuring the "threat 
to the  environment, national economy, or public health" as outlined in Article 10 of Decree -Law 
No. 21/2003 . This Member requested th at Timor -Leste ensure that any sanitary or phytosanitary 
measures to protect biological diversity and human health were based on scientific principles and 
were least trade restrictive as outlined in Art icles 2 and 5 of the SPS Agreement.  
219.  The representative of Timor -Leste responded that t he Government had approved Decree -Law 
No. 6/2020 of 6 February 2020 on the "Legal Regime to Protect and Conserve the  Biodiversity " 
applicable to the conservation of biodi versity , the sustainable use of its components and the fair and 
equitable sharing of the benefits generated from genetic resources, as fundamental bases for family 
subsistence, food security and the well -being and health of current and future generation.  Article 34 
of this Decree -Law state d that the preservation and conservation of habitats and critical habitats 
necessary to ensure that an organism or population of a species c ould survive and thrive was carried 
out within the national system of protected areas, without prejudice to the possibility of adopting 
specific ex situ measures.  Article 37 identifie d the measures of risks for the importation of exotic 
species as follows:  
• Exotic species that pose d a threat to ecosystems, habitats or species  were identified in 
a national list that contain ed in a discriminated way:  
• Identification of invasive alien species whose import or circulation in the country was 
prohibited;  
• Identification of non -invasive exotic species whose import or circulation had to  be 
regulated.  
• The national list was prepared by the Government member responsible for nature conservation 
and biodiversity, after consultation with the Governmental entity responsible for the WT/ACC/SPEC/TLS/5/Rev.1  
 
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  environment, the Biodiversity Advisory Committee, quarantine ser vices and relevant research 
institutions, taking into account the available information ; 
• The national list of exotic species was approved by a Government Resolution.  
• Any person, whether natural or legal, could  submit a request for inclusion or removal of s pecies 
from the national list of exotic species to the Government entity responsible for nature and 
biodiversity conservation.  
The information  on the invasive species in Timor -Leste is contained in Annex 17. The representative 
of Timor -Leste confirmed that his Government would ensure that its sanitary or phytosanitary 
measures to protect biological diversity and human health were based on scientific principles and 
were least trade restrictive as outlined in Articles 2 and 5 of the SPS Agreement.  
220.  A Member also requested the Government of Timor -Leste to notify the WTO, in accordance 
with its obligations under Annex B of the SPS Agreement and Article 2.9 of the TBT Agreement, 
when the regulatory changes may have a significant effect on trade with other Members or be of 
particular interest to parties in other Member countries. The representative of Timor -Leste confirmed 
that his Government would notify the WTO accordingly.   
221.  The rep resentative of Timor -Leste requested that the Working Party grant a transition period 
from the date of Timor -Leste 's accession until 2027 for the implementation  of the WTO SPS 
Agreement, as outlined in the Action Plan for the Implementation of the WTO SPS Agreement 
reproduced in  Annex 18 of this Report. This transition period would allow Timor -Leste  to fully 
implement the obligations under the Agreement. He stressed the necessity for his Government to 
receive adequate technical and financial assistance to ensure the proper implementation of the WTO 
SPS Agreement.  
222.  Members highlighted the efforts made by Timor -Leste  in reviewing its SPS legislation and 
invited Timor -Leste  to continue with its efforts to bring regulations and legislation progressively in 
compliance with WTO rules.  They took note of Timor -Leste 's request for a transition period until 
2028 for full implementation of the WTO SPS Agreement and encouraged Timor -Leste  to take 
advantage of the technical assistance available in the SPS area.  
223.  [The representative of Timor -Leste  confirmed that Timor -Leste  would progressively implement 
the WTO Agreement on the Application of Sanitary and Phytosanitary Measures in accordance with 
the Action Plan provided in  Annex 18. He further confirmed that during the transition period, existing 
measures would be applied on a non -discriminatory basis, i.e., providing national treatment and 
MFN treatment to all imports.  Measures in place at the time of accession and already consistent w ith 
the provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures, 
would not be subject to transition. Timor -Leste  would ensure that any changes made in its laws, 
regulations and practice during the transition period would n ot result in a lesser degree of 
consistency with the provisions of the WTO Agreement on the Application of Sanitary and 
Phytosanitary Measures, than existed at the date of accession.  Full implementation of the WTO 
Agreement on the Application of Sanitary a nd Phytosanitary Measures would start from WT/ACC/SPEC/TLS/5/Rev.1  
 
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  1 January  2028 without recourse to any further transition period.  He further confirmed that 
Timor -Leste  would consult with 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  
224.  The representative of Timor -Leste informed that his Government did  not have  any 
trade -related investment measures in place.  In the future, should such measures be introduced, 
they would be in compliance with the WTO Agreement on Trade -Related Investment Measures 
(the TRIMs Agreement) , as the Government was willing to fully comply with WTO rules.  
225.  [The representative of Timor -Leste  said that his Government  would not maintain any 
measures inconsistent with the WTO TRIMs Agreement and would apply the WTO TRIMs Agreement 
from the date of accession without recourse to any transition period. The Working Party took note 
of this commitment. ] 
- Free zones, special economic zones  
226.  The representative of Timor -Leste informed that the  Customs Code authorized  
the Gover nment of Timor -Leste to approve free zones benefiting from customs exemption regimes. 
However, there were currently no free zones within  the territory of Timor -Leste.   
227.   Through Law No. 3/2014 of 18 June 2014 , the National Parliament had approved the  creation 
of the Oecus se-Ambeno Special Administrative Region (SAR) and the Special Economic Zone for 
Social Market Economy (ZEESM)  whose territory include d the enclave of Oé -Cusse and the  island of 
Ataúro . ZEESM ha d made considerable progress since 2014, establishing an effective administrative 
and regulatory framework as a SEZ, which ha d fostered infrastructure development 
(e.g. telecommunications, roads, bridges, airport, port, water and sanitation systems, schools , 
health clinics, electrical power grid, etc. ) that nurture d the enabling environment for regional 
economic development and diversification.  The Statute of the Oecusse -Ambeno Special 
Administrative Region , approved by Decree -Law No. 5/2015 of 22 January 20 15, had mandate d that 
a Free Trade Zone and an Industrial Customs Free Zone be created within the Region. The specific 
rules on the Free Trade Zone and Industrial Customs Free Zone were yet to be enacted .  
228.  In addition, Article 10 of the draft Export Promot ion Law provided for  the right of establishment 
in a special economic zone. An exporting company could  establish itself in special economic zones, 
namely in export processing zones or warehouses and in free zones .  
229.  Responding to Member's question on the process of development of this special economic 
zone and the types of incentives provided, the representative of Timor -Leste further informed that 
the Authority of SEZ was empowered to enact public policy measures, to  be enforced within its own 
territorial limits, to exempt from the payment of customs duties and respect for the principle of the 
social market economy as a paradigm of economic growth by attracting investment, technology and WT/ACC/SPEC/TLS/5/Rev.1  
 
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  the establishment of companies , both domestic and foreign. To date , this was only  applicable to 
goods imported to implement SAR's projects and programs, in accordance with Article  38.3 of 
Law No. 3/2014 . Two public projects ha d benefited  from customs exemption, namely: 
(i) the construction of a Clinic and acquisition of two mobile clinics and (ii) a Hotel, both funded by 
the Special Administrative Region Development Fund. Tax exemptions were granted to investors in 
the special economic zone Oe -Cusse Ambeno and Ataúro for a perio d up to 10 years (see Table  1 of 
section " Investment regime "). A more de tailed package of incentives was yet to be determined by 
the Authority, in compliance with  WTO rules.  
230.  The representative of Timor -Leste further updated that his Government had adopted 
Decree -Law No. 44/2022 of 8 June 2022 on "Legal Framework for Industrial Parks"  with the objective 
to regulate the establishment, management and functions of the industrial park s. This Decree -Law 
had been provided to the Working Party.  The new regime determine d the administrative procedures 
of the industrial park s, including the infrastructure required for establish ment in an industrial park ; 
and management of the industrial park s, whereby each industrial park had to  be managed by a 
commercial entity. The commercial entity had to  have a capital greater than US$ 500,00 0 to manage 
the industrial park . The Decree -Law, however, d id not cover the ZEESM/the Special Administrative 
Region of Oecusse as it was governed  by a Decree -Law No. 5/2015.  
231.  [The representative of Timor -Leste  confirmed that, from the date of accession, fr ee zones and 
special economic zones would be established, maintained and administered in full conformity with 
the provisions of the WTO Agreement, including the WTO Agreement on Subsidies and Countervailing 
Measures and the WTO Agreement on Trade -Related I nvestment Measures, and that Timor -Leste 
would ensure enforcement of its WTO obligations in those zones. He further confirmed that the right 
of firms to register and operate in these zones would not be subject to export performance, trade 
balancing, or loc al content criteria requirements. In addition, the representative of Timor -Leste  
confirmed that from the date of accession , goods imported into the free trade zones  and goods 
produced in any free trade zones or areas under tax and tariff provisions that exempt imports and 
imported inputs from tariffs and certain taxes , would be subject to normal customs formalities when 
entering the rest of the territory of Timor -Leste , including the application of tariffs and taxes.  
The Working Party took  note of these commitments. ] 
- Government  procurement   
232.  There are no major restrictions or limitations on foreign entities ' (natural or legal persons) 
participation in Timor -Leste 's procurement procedures. Government  procurement was governed by 
the Timor -Leste Public Procurement Framework, approved b y Decree -Law No. 10/2005 of 
21 November  2005, as last amended by Decree -Law No. 5/2021 of 23 April 2021.  
233.  With respect to the type of Procurement Procedure , he informed that  there were no major 
restrictions or limitations on foreign entities ' (natural or legal persons) participation in this 
procedure. A s a general rule, irrespective of the acquisition ( i.e. goods, services or works) , a national  
open tender procedure had to  be followed if the expe nse to be incurred was in an amou nt in excess WT/ACC/SPEC/TLS/5/Rev.1  
 
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  of US$  100,000.  An international open tender  procedure  had to  be followed in situations that pertain 
to: (i) public works in excess of US$  1,000,000; (ii) the purchase of goods and acquisition of 
non-consulting services in excess of US$  250,000; or, (iii) the acquisition of services or consultancy 
contracts in excess of US$  200,000.  
234.  In the national open tender procedure, the  participation of bidders was limited to Timor ese 
nationals and/or  companies se t up in Timor -Leste whose majority share of capital was held by 
Timor -Leste citizens (at least 51%) or in which said Timor ese individuals and/or companies could be  
regarded as preferential bidders.  
235.  In addition, by Decree -Law No. 2/2010 of 18 February 2010  on "Special Procurement for 
Construction Work Up to US$ 250,000" , the Government  had approved a special procurement 
procedure for the award of public works in the amount of up to US$  250,000, in which only local 
companies based in the municip ality could  apply.  This Decree -Law aimed at supporting private sector 
development at the sub -district level and encourage community participation in infrastructure 
development in their area. Another limitation to the general principle of open and transpare nt 
competition could  result from the adoption of direct award procedures. However, in these cases , 
both national and foreign entities could  benefit from this type of procurement. The Public 
Procurement Framework  listed the rules and procedures that allow ed for this type of procedure to 
be adopted , however, this was an exception al situation that require d a clear and detailed 
justification. Such situation s were, among others: (i) emergency case s following an unforeseen ev ent 
which endanger ed public health and safety; (ii) the absence of  tenders or the absence of  tenders 
which met the criteria laid down in the invitation to tender, or if the candidates d id not meet the 
requirements for participation; (iii) when goods and se rvices c ould only be supplied by a specific 
entity and a reasonable or substitute  alternative  did not exist on the market ; (iv) for the protection 
of patents, copyrights or other exclusive rights or intellectual property rights.  The adoption of a 
direct award procedure c ould also be made on the basis of material criteria, in which case the choice 
was independent of the value of the respective contract. The adoption of a direct award procedure 
that had not been  duly grounded and justified according to the Decree -Law could  be viewed as an 
administrative offence, pursuant to Article 3  of Decree -Law No. 11/2005  of 8 November 2005 on 
"Legal Regime for Public Contract" , which set forth the Legal Framework on Administrative Offences 
to the  Public Procureme nt Legal Framework and state d that any action or omission which was 
contrary to the rules established in the Timor -Leste Public Procurement Framework  constitut ed an 
administrative  offence.  
236.  Another  situation that had been  regarded as a limitation to the general principle of open and 
transparent competition result ed from the existence of an internal instruction from the Cabinet of 
the Prime -Minister ( Circular Note No. 003/GPM /III/2009 ) that had authorized the Government to  
preferentially purchase Mitsubishi or Toyota vehicles, except when there was a specific reason that 
justifie d the purchase of state vehicles of other brands . This had been  a transitory measure justified 
by the availability of spare -parts and maintenance se rvices , which had been revoked . Responding 
to Member's question on the existence of any other specific goods/services/sectors for which the WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Government was expected to buy specific brands, the representative of Timor -Leste confirmed that 
there were none.  
237.  He added that, a part from the se exceptions, the Government  of Timor -Leste d id not limit or 
restrict the  participation of foreign nationals or entities in public tender procedures.  
238.  Responding to a question from a Member on the procedure for procurements above the 
US$ 100,000 threshold but below the international open tender thresholds, he informed that this 
threshold had been introduced by Decree -Law No. 24/2008 of 23 July 2008. Public tenders were 
mandatory in procurements equal to or over US$ 100,000 and not reserved  for local companies. 
Whenever purchasing goods and services and executing public works, all public institutions had to 
follow principles such as public interest, competition, equal treatment, legality, transparency, and 
impartiality, which are set by Decr ee-Law No. 10/2005.   
239.  Requested to provide information on the number and value of tenders above the US $ 100,000 
threshold or other thresholds , the representative of Timor -Leste responded with an  invitation to 
consult the eProcurement Portal at: https://www.mof.gov.tl/government -
procurement/eprocurement -portal/?lang=en  whereby the data and any other relevant information 
on Timor -Leste Public Procurement were made availa ble. In addition, since 2015, the Public 
Procurement Commission also maintained  a procurement portal ( www.cna.gov.tl www.cna.gov.tl ) 
which present ed information on current tenders and intent to award, whereby it announce d 
invitation s for bids, winning bidder s and the results of the evaluations undertaken. This website also 
kept records of past public tenders.  
240.  A Member also requested to confirm that foreign -based bidders were treated on a fair and 
equal basis with domestic bidders in bidding processes above US $ 100,000 . In response, the 
represent ative of Timor -Leste referred to Article 4 (Legal and Equality Principles)  of Decree -Law 
No. 10/2005 which provided that access and participation conditions we re equal to all interested 
parties. Any discrimination of the bidders was prohibited. Accordingly , he confirmed that 
foreign -based bidders were treated on a fair and equal basis .  
241.  A Member asked for a clarification regarding the award procedure, including any requirements 
and limitations surrounding the use of the direct award procedure for foreign -based bidders  and any 
available guidelines to help provide foreign -based bidders with advice on the use of the direct award 
procedure . The representative of Timor -Leste informed that this procedure was exceptional. Articles 
92 to 94 of Decree -Law No. 10/2005 provided  the requirements and limitations surrounding the use 
of the direct award procedure for all bidders, as described in paragra ph [235]. Those were the 
applicable guidelines foreign -based bidders c ould refer to with respect to the direct award procedure .  
242.  In response to a Member's question , the representative of Timor -Leste also elaborated on 
the amendment introduced by Decree -Law No. 30/2019  which included a requirement for all 
international public tenders to be publicized on at least two electronic platforms internationally used 
for th is purpose, as well as in a newspaper with national circulation, so that the announcement for WT/ACC/SPEC/TLS/5/Rev.1  
 
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  the opening of the tender would get to the broadest number of potential competitors  (amendment 
to Article 61) . He added that the latest, seventh amendment effecte d by Decree -Law No. 5/2021 of 
23 April 2021 introduced an exceptional regime to facilitate government procurement in response 
to the emergency situation and humanitarian concerns that the country faced as a result of the 
tropical flood which had occurred i n April 2021.  
243.  The representative of Timor -Leste added that, Timor -Leste , as an LDC, remain ed committed 
to alignment and compliance with the WTO rules, commensurate to Timor -Leste's development 
needs, according to Article V of the WTO Agreement on Governmen t Procurement and aiming for 
a modern Public Procurement Framework . In this exercise, t echnical assistance was provided 
whereby the public procurement system was subject to an evaluation conducted with the support of 
the World Bank  (WB) and the Asian Devel opment Bank  (ADB) , according to the Methodology for 
Assessment to Procurement Systems (MAPS). The report resulting from this assessment would be 
submitted to the Government, with the pertinent recommendations , in the course of 2023 . 
244.  He further informed about the enactment of t he new Legal Regime for Procurement, Public 
Contracts and the Respective Infractions  (Decree -Law No. 4/2022 of 23 March 2022 ). The new 
Decree -Law, which would enter into force on 1 January 2023,  intended to create a simpler  and more 
transparent  procurement regime . The changes were as follow s: (i) the integration of the legal 
regimes of supply, of public contracts and of their infractions in a single Decree -Law; 
(ii) simplification of procedures, with the categories of proced ures going from seven to three ; 
(iii) better  systematization and description of each supply phase; (iv) strengthening planning 
processes; (v) greater transparency  and strengthening of the procurement portal; and 
(vi) strengthening the powers of the Nationa l Procurement Commission. The Decree -Law has been 
provided to the Working Party for review.  
245.  Apart from the special regime contained in Decree -Law No. 2/2010 of 18 February 2010 on 
"Special Procurement for Construction Work Up to US$250,00 0", which remains  in force, the three 
categories of procedure established in Decree -Law No. 4/2022 are : (i) public tender (with no 
distinction between national and international public tender); (ii) procedure soliciting tenders on 
quotations (a minimum of three quotations) ; and (iii) direct award procedure. Under the Decree -Law, 
public tenders were mandatory in procurements equal to or over US$  100,000 (with very few 
exceptions as in the previous regime , where soliciting tenders on quotations and direct award 
procedures are allowed). In procurements under US$  100,000 , public tenders or soliciting tenders 
on quotations were allowed (the direct award procedure was possible  in very few cases , as in the 
previous regime). In procurements of less than US$  10,000 , all three categories were allowed.  
246.  For procurements under US$ 100,000 wh ich contributed  to the promotion and development 
of the national economy, the contracting authority c ould limit the participation  of bidders to Timor ese 
individuals and/or companies set up in Timor -Leste and whose capital was majority held by Timorese 
citizens (more than 50%). This limitation could also be included in procurements equal to or over 
US$ 100,000 if the object of the pr ocurement was related to sectors, goods or administrative areas 
qualified by Government Resolution as strategic and/or of special protection. In procurements over WT/ACC/SPEC/TLS/5/Rev.1  
 
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  US$ 1,000,000, the contracting authority could include as a condition that the proposal contr ibuted 
to economic and social development by transferring technology or know -how to workers and local 
companies, by including a minimum amount of goods and services to be acquired in the local or 
national market, or by including a minimum number of nationa l workers to be hired.   
247.  [The representative of Timor -Leste confirmed Timor -Leste's willingness to accede to the WTO 
Agreement on Government Procurement. Timor -Leste would become an observer to the Agreement 
upon accession, and submit an application for membership with a coverage o ffer within one year 
following  accession to the WTO. The Working Party took note of these commitments. ]  
- Transit  
248.  Under Timor -Leste 's Customs Code, goods in transit had to  undergo control and customs 
inspection . Their transportation took place under a tra nsit declaration, issued in triplicate. Originals 
of transit declarations had to  be filed at the customs office of transhipment  and the respective 
duplicates and triplicates had to  be handed over by the c arrier to the customs office of  destination.  
There w ere no  fees applicable to goods in transit.  
- Agricultural policies  
249.  The representative of Timor -Leste informed that agriculture was a critical sector for 
Timor -Leste's development. The majority of households in Timor -Leste were rural and agricultural. 
Most workers were engaged in the agricultural sector . Given the low level of agricultural output, 
Timor -Leste ha d a large  agricultural sector with low productivity, operating at close to s ubsistence 
level. The sole significant export crop was coffee, which was grown in smallholdings and provide d 
income for households accounting for  approximately one quarter of the population. In the medium -
term, the Government envisaged that  exports w ould focus on agricultural cash crops including 
coffee, spices and other niche products. Improving farm -level productivity and domestic transport 
infrastructure and reducing shipping costs w ould be important factors in the growth of agricultural 
cash crops. In  addition, in  the long -term, Timor -Leste ha d considerable potential to develop 
profitable commercial forestry and fishing industr ies. 
(a) Imports  
250.  The representative of Timor -Leste informed that t here were no specific policies affecting 
imports of agricultura l products. Imported agricultural goods were only subject to the rules contained 
in Decree -Law No. 21/2003 of 31 December  2003 on  "Quarantine and Sanitary Control on Goods 
Imported and Exported"  requiring sanitary import permits , as mentioned  in the section on "Sanitary 
and phytosanitary measures" .  
(b) Exports  
251.  There were no export prohibitions or restrictions for agriculture products. This policy was 
expected to be maintained in the future as pa rt of Timor -Leste's investment policy.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  252.  There were no export subsidy measures in place. There were no laws, regulations, policies or 
programs providing for export credit, export credit guarantees, or insurance programs .  
253.  [The representative of Timor -Leste  confirmed that Timor -Leste  would bind agricultural export 
subsidies at zero from the date of accession.  The Working Party took note of this commitment. ] 
(c) Internal policies  
254.  The representative of Timor -Leste provided info rmation on domestic support and export 
subsidies in agriculture for the 2019-2021 period  in document WT/ACC/SPEC/ TLS/1/Rev. 2. 
255.  A Member noted that the Ministry of Agriculture and Fisheries was responsible for the design, 
implementation, coordination, and evaluation of policy approved by the Council of Ministers in 
the area of agriculture, forestry, fisheries, and livestock. The Ministry could  propose policy and draft 
legislation/regulations to  establish technical support centers for farme rs; manage technical and 
agricultural education; promote agricultural research and optimization of agricultural land; control 
land use for agricultural production purposes; promote and monitor animal health; promote 
the agricultural and fishing industry; p romote and control food production, including seed 
production; manage the quarantine services; promote, in coordination with the Coordinating Minister 
for Economic Affairs, rural development by implementing a cooperative system for the production 
and comme rcialization of agricultural production; and carry out feasibility studies for the installation 
of irrigation systems, water storage, as well as the construction of the respective facilities. A Member 
asked if such measures to support the agricultural sect or ha d been established to date , and to 
provide budgetary allocations . A Member further asked if the Government of Timor -Leste planned 
to develop a new strategic plan of the Ministry of Agriculture and Fisheries.   
256.  The representative of Timor -Leste responde d that t he Ministry of Agriculture and Fisheries 
was operating  based on the strategic plan for 2014 -2020 and its short - and medium -term strategic 
plans, which were developed in accordance with the National Strategic Development Plan of 
2011-2030. Referring to the impact of  the COVID -19 pandemic on the overall economic growth of 
the country,  he added that the Ministry  would maintain the current strategic plan . The plan  could be 
reviewed in future, in line with the vision set under the National Strat egic Development Plan of 
2011-2030.  
257.  He added that a gricultural policies had been developed according to the Agriculture Policy in 
2004, w hich had been revised in 2017, to reflect the five main priorities : (i) sustainable increase in 
production and product ivity; (ii) improving market access and value addition; (iii) improving 
the enabling environment for the agricultural sector; (iv) organizational development; and, 
(v) sustainable resource use. Between 2013 and 2017, the Ministry had invested a total of over 
US$ 119 million in these priority sectors, and a  total of over US$ 60.9 million between 2018 and 
2021.  A number of outcomes ha d been achie ved as a result of these budgetary allocations including:  
• Rehabilitation of nine main irrigation canals across th e country to improve its irrigation system 
as part of its infrastructure development programme;  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  • Increased rice productivity from 3.5 to 6 tons/hectare;  
• Increased seed production, particularly for rice, maize and beans;  
• Increased vaccinations and animal fee ding programmes as part of the development of 
livestock programme; and  
• Development of the aquaculture industry on the South Coast of the country.  
These measures had been notified to the Working Party as part of the information on domestic 
support and expo rt subsidies in agriculture , in Table DS:1.  
258.  A Member further requested detailed information about the  Contingency Fund for Purchase of 
Rice. In response, the representative of Timor -Leste informed that his  Government  had set its food 
security objective by securing food stock of rice of around 140,000 metric tonnes per annum in 
accordance with annual domestic rice consumption. Rice was purchased in the national territory and 
from abroad , through government -to-government cooperation. In accordance with Decree -Law 
No. 26/2014 of 10 September 2014, the Coordinating Minister for Economic Affairs (MCAE), the 
Minister overseeing the National Logistic Center agency (NLC), the Ministry of Agricul ture and 
Fisheries (MAF), the Ministry of Tourism, Commerce and Industry (MTCI), and the Ministry of Finance 
issued a joint Order, based on the diagnostic study undertaken by the technical working group 
composed of these Ministries, with recommendations on  the specific conditions and prices in 
accordance with the market trend and the yield of rice production in the country. The Government's 
market interventions are made through the National Logistic Center (NLC).  
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIM E 
1. GENERAL  
259.  The representative of Timor -Leste informed that, i n accordance with the provisions of A rticle 
165 of the Constitution , the laws and regulations in Timor -Leste appl ied insofar as they were not 
contrary to the Constitution and to the principles contained therein. Accordingly,  all Indonesian 
legislation on intellectual property existing prior to the rest oration of the independence  (Title XX of 
the Indonesian Civil Code on "Intellectual Prop erty")  remain ed formally in force. However , in practice 
it had not been effective , as there was no adequate institutional framework for its implementation 
(such as an Intellectual Property Registration  Agency ). He confirmed that the Government of 
Timor -Leste recognize d the urgent need for protecting intellectual property ( IP) owners while doing 
business in the country.   
260.  He added that , despite the absence of legislation regulating protection and registration of IP  
rights  in Timor -Leste, several statutes adopted by Timor -Leste address ed IP-related matters , as 
described in this section. Thus, the Constitution provide d that the State sh ould guarantee and protect 
the creation, production and commercialization of literary, sci entific and artistic work, including 
the legal protection of copyrights.  Section 60 of the Constitution  (Intellectual Property ) constitutes 
the legislator's obligation to produce specific legal instruments to protect th ese rights.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  261.  He added that, to date, Timor -Leste did not have an IP office for administration and 
management of IP -related legislation.  
262.  He further informed that Timor -Leste had acceded to the World Intellectual Property 
Organization (WIPO) on 12 September 2017, following the deposit with the Director General of 
WIPO, in Geneva, of the Instrument of Accession to the Convention Establishing the World 
Intellectual Property Organization (WIPO), signed at Stockholm on 14 July 1967, and amended on 
28 September 1979. Resolution of the National Parli ament of Timor -Leste No. 16/2017 of 
25 July 2017 ratified the Convention. The accession to the WIPO had opened avenues of institutional 
collaboration and partnership that would help Timor -Leste achieve compliance with the substantive 
obligations of the WIPO Convention and the international treaties and conventions on Intellectual 
Property, such as the Paris Convent ion for the Protection of Industrial Property (Paris Convention) 
and the Berne Convention for the Protection of Literary and Artistic Works (Berne Convention). 
The Government of Timor -Leste and WIPO had signed  sign a Memorandum of Understanding (MOU)  
in November 2021 , aware of the importance of having a well -functioning and balanced IP regime in 
order to promote innovation and creativity, which are the main drivers of economic development of 
knowledge -based economies . The MOU allow ed the Government of  Timor -Leste to have access to 
specialized technical assistance in order to appropriately integrate IP related issues into the  national 
development framework and cater for the interface of broad national IP policies and strategies with 
relevant national policy i ssues. The MoU ensure d that WIPO 's assistance would target the necessary 
legislation and policy reforms to comply with the WTO Agreement on Trade -Related Aspects of 
Intellectual Property Rights (TRIPS Agreement), aiming to: (i) develop a National IP Strate gy/Policy  
and its Action  Plan; (ii) integrate IPR -related agreements into the national policy and regulatory 
framewor k; and, (i ii) set up a National IP Office and capacity building. To achieve these objectives, 
the Government of Timor -Leste committed to using the existing methodo logy and tools of the WIPO, 
while still recognizing the specific national circumstances and requirements . 
263.  Responding to a Member's question on Timor -Leste's  membership  in other IP -related 
conventions, including  the pr incipal treaties in the field of IP as well as other international copyright 
treaties, such as the WIPO Internet Treaties , the representative of Timor -Leste responded that 
the Government of Timor -Leste committed to sign and ratify all conventions and treat ies deemed 
necessary for having a modern IP regime, as well as the ones required in the context of accession 
to the WTO. The timeframe for joining such conventions and treaties would result from the national 
assessment of IP -related issues in Timor -Leste.  
264.  Responding to a Member's question, he added that  the Copyright Law No. 14/2022 of 
21 December 2022 had been approved and would enter into force on 22 June 2023.  As of February  
2023, the Government of Timor -Leste , assisted by USAID and WIPO,  was finalising the develop ment 
the Industrial Property Code , which include d provisions on trademarks, patents, utility models, 
industrial designs, geographical indications and trade secrets. This draft Code had been  submitted 
to the Working Party for Members' comments and review , together with the draft Decree -Law on the 
Establishment of the IP Office , all of which  were expected to be promulgated in the course of 2023 . WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Provisions on treatment of plant varieties were yet to be developed separately.  
265.  As an LDC, the Government of Timor -Leste expect ed to be granted an adequate period to 
adopt TRIPS -inherent obligations in the national system. Since IP -related issues were knowledge 
intensive and specialized in nature, they  require d the country to have the appropriate institutions 
and human capital in place, which t ook time. In response to a Member's question on the timeline for 
adoption of IP laws, he referred to the Action Plan on the Implementation of the TRIPS Agreement 
provided in Annex 19. 
- Application of national and most favoured nation treatment to foreign nationals  
266.  The Private Investment Law  set for th the general principle of equal treatment between national 
and foreign investors , determining that all investors enjoy ed non-discriminatory treatment in terms 
of rights and guarantees, except with regards to land ownership and to the minimum investment or 
re-investment values. Within the Law, an investment was defined as any direct or indirect 
investment in the country undertaken on behalf of and at the risk of the private investor with cash 
or other goods, quantifiable in monetary terms, such as patented t echnology, technical processes, 
industrial secrets and utility models, franchising and transfer of know -how, brands, logos, names or 
insignias of registered establishments, as well as any other form of intellectual property.  Article 19 
of the Law (Intellec tual Property) established that all investors had the right to the protection of 
industrial secrets, copyright, industrial property rights, trademarks, or any other intellectual property 
rights recognized by law.  The Law contained general provisions applic able to foreign investors' 
intellectual property rights and referred the respective regime to specific specialized IP legislation 
which was yet to be developed to further regulate standards, enforcement and dispute settlement 
mechanisms inherent to investo rs' rights and guarantees.  Thus, i nvestors were guaranteed the right 
to freely transfer funds abroad, which included income obtained from the transfer of intellectual 
property rights which constituted the investment. The Law also established that investors  were 
entitled to protect patents or utility models which they had registered as the respective authors, as 
well as trademarks, logos, names or insignias of establishments and other information, and object s 
of protection in terms of IP, according to the ap plicable legislation .  
- Fees and taxes  
267.  The representative of Timor -Leste informed that the  Private Investment Law grant ed 
the opportunity to national and foreign investors to be awarded certain tax benefits and customs 
incentives  (see the section on "Investment regime "). The regime  had abolishe d the fee both for 
nationals and foreign nationals.  
2. SUBSTANTIVE STANDARDS OF PROTECTION  
- Copyri ght and r elated rights  
268.  The representative of Timor -Leste informed that the Copyrights Law No. 14/2022 of 
21 December 2022 had been adopted. The Law provided for a 180 -day period for public 
dissemination prior to entering into force, in June 2023. The Law a imed to protect literary, artistic WT/ACC/SPEC/TLS/5/Rev.1  
 
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  and scientific works as well as the rights of their authors, artists, producers of phonograms and 
videograms, and broadcasters. The Law was expected to stimulate the creation and production of 
artistic and intellectual wo rks in literature, arts, and science. A copy of the Law was shared with the 
Working Party.  
269.  A Member asked a question about the term "private use" contained in  Article 129  of the 
Copyright Law. The representative of Timor -Leste explained that the expression  "private use" was 
understood to mean use other than public use or use for profit.  
270.  In response to a Member's question, he confirmed that his Government intended to comply 
with all provisions of the TRIPS Agreement applicable to LDCs, and its inherent standards, 
enforcement and dispute mechanisms , including by joining the Berne Convention for the Protection 
of Literary and Artistic Works ( Berne Convention ) and by establishing the relevant protections for 
copyrights and related rights consistent with Part II, Section 1 of the TRIPS Agreement and Articles 
1-21 of the Berne Convention .  
- Trademarks , including service marks  
271.  The representative of Tim or-Leste informed that there were presently no laws and related 
substantive measures to ensure the protection of trademarks , including service marks . 
The Government was finalizing the draft Industrial Property Code , which would contain provisions 
on tradem arks, for promulgation in the  course of 2023 . In response to Member's question, he 
confirmed that his Government intended to join the Paris Convention for the  Protection of Industrial 
Property  (Paris Convention ) and to establis h the relevant protections for trademarks, including 
service marks  consistent with Part II, Section 2 of the TRIPS Agreement and Articles 6-10 of the 
Paris Convention.  
- Geographical I ndications , including appellations of origin  
272.  The representative of Timor -Leste informed that t here were presently no laws and related 
substantive measures to ensure the protection of geographical indications , including appellation of 
origin . The Government was finalizing the draft Industrial Property Code , which would con tain 
provisions on geographical indications, for promulgation in the course of 2023 . In response to a 
Member's question, he confirmed that his Government intended to establish the relevant protections 
for geographical indications, including appellation of origin consistent with Part II, Section 3 of the 
TRIPS Agreement.  
- Industrial d esigns  
273.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure the protection of industrial designs. The Governm ent was finalizing 
the draft Industrial Property Code , which would contain provisions on industrial designs, for 
promulgation in the course of 2023 . In response to a Member's question, he confirmed that his 
Government intended to comply with all provisions of the TRIPS Agreement applicable to LDCs, and 
its inherent standards, enforcement and dispute mechanisms , including by establishing the relevant WT/ACC/SPEC/TLS/5/Rev.1  
 
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  protections for industrial designs  consistent with Part II, Section 4 of the  TRIPS Agreement.  
- Patents  
274.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures  to ensure the protection of  patents.  The Government was finalizing the 
draft Industrial Property Code , which would contain provisions on patents, for promulgation in the 
course of 2023 . In response to a Member's question, he  confirmed that his Government intended to 
establish patent laws  consistent with Part II, Section  5 of the TRIPS Agreement.  
- Plant va riety protection  
275.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure plan t variety protection.  In response to a Member's question, 
he confirmed that his Government intended to establish plant variety protection laws consistent with 
Part II, Section 5, Article 27(3)(b)  of the TRIPS Agreement.  
- Layout designs of integrated circuits  
276.  The representative of Timor -Leste informed that there wer e presently no laws and related 
substantive measures to ensure the protection o f layout designs of integrated circuits.  In response 
to a Member's question, he confirmed that his Government intended to join the Treaty on IP in 
Respect of Integrated Circuits  (IPIC) and to establish layout designs of integrated circuit laws 
consistent with the TRIPS Agreement Part II, Section 6  of the TRIPS Agreement and the IPIC.  
- Requirements on undisclosed information , including trade secrets and test data  
277.  The representati ve of Timor -Leste informed that no protection was currently provided  to 
undisclosed information, including trade secrets and test data . The Government was finalizing the 
draft Industrial Property Code , which would contain provisions on trade secrets, for p romulgation in 
the course of 2023 . In response to a Member's question, he confirmed that his Government intended 
to join the Paris Convention  and to establish laws on trade secrets and test data consistent with Part 
II, Section 7 of the TRIPS Agreement and Article  10bis of the Paris Convention . 
3. MEASURES  TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  
278.  The representative of Timor -Leste informed that  IPRs were not specifically protected in 
Timor -Leste due to the absence of specific statutes covering t hese matters. However, t o control 
the use of IPRs, one c ould use judicial courts and the general civil proceedings  apply ing thereto.   
279.  As a temporary mechanism , companies run advertisements in local newspapers (commonly 
called "Cautionary Notices ") in order to publicize the fact that a given IPR was exclusively owned by 
a certain company and that its unlawful use was forbidden. A Cautionary Notice was a simple 
advertisement  that stated the name and address of the IPR owner along with a description of 
the goods and services the IPR aims to protect. In the case of a patent, an abstract was also included. 
In the case of a design, it was common to include the relevant representa tion. Trademarks were WT/ACC/SPEC/TLS/5/Rev.1  
 
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  generally displayed exactly as they are being used (word and/or device) with the corresponding list 
of goods or services. According to local practice, Cautionary Notices were written in Tetum and in 
English. Businesses generally repub lished Cautionary Notices every two years so that, in case of 
infringement, IPR owners ha d a recent publication to buttress their claim. Licen ces, changes of name 
or address, and assignments could  also be mentioned on republication , so that IPR owners ha d 
the most up -to-date proof of ownership or licen ce. Although there were no legal grounds for this 
practice, the publication of Cautionary Notices remained the only procedure that interested parties 
could adopt in an attempt to overcome the absence of IPR re gistration and protection in Timor -Leste.  
4. ENFORCEMENT  
280.  Referring to paragraph [279], the representative of Timor -Leste said that the Cautionary 
Notices mechanism had proven to be an effective and efficient way of preventing trademark, patent 
and design infringements to date . Cautionary Notices granted a cause for action against 
infringement.  Companies indicated that, in the event of IPR infringement, sending a "cease and 
desist letter" along with a copy of a local newspaper containing the Cautionary Notice advertisement 
contributed to limiting counterfeited goods from entering or circulating in Timor -Leste, despite 
the absence of an IP law. If counterfeiting occurred, the Government was committed to seizing and 
destroying counterfeited goods when they were reported.  
281.  A Member further asked to clarify how the Government of Timor -Leste determined the valid 
IP right holder of intellectual property, in spite of no IP registration, and how the Government 
determined the good s in question w ere counterfeit. In response, the representat ive of Timor -Leste 
referred to Article 305 of the Code of Civil Procedure (Decree -Law No. 1/2006 of 21  February 2006) 
that provided that, whenever a person showed sustained concern that somebody else was causing 
serious injury to their right that was diffi cult to repair , they could request specifically adequate 
conservatory or preventive measure s to ensure the effectiveness of the right being threatened.  
Decree -Law No. 23/2009 of 5 August 2009 on "Food Safety and Business Administrative Offences" 
establishe d in Article 21 (Fraud on Goods) that anyone who imported or sold, as a  wholesaler or 
retailer, with the intention of deceiving consumers in commercial relations, was punished with a fine 
of US$ 3,000.00 to US  $20,000.00 for goods and merchandise  that were : (i) counterfeit, forged or 
depreciated, making them appear authentic, unaltered or intact; or (ii) of a different nature or of a 
lower quality and quantity than th at which they appeared or claim ed to possess. Public authorities 
determined a counterfeit, forged or depreciated product by way of an administrative offence 
procedure based on Article 38.1. of Decree -Law No. 23/2009 . The appeal c ould be submitted to the 
court. Such provision allowed for the reporting of counterfeited goods to law enforcement institutions 
(e.g. National Police of Timor -Leste, Customs Police), whereby informal Cautionary Notices could be 
used to sustain complaints and legal causes against occurrences of IPR infringements. He  informed 
that his Government was aware that this system was weak and carried inefficiencies. It was 
committed to setting up a modern IP legal framework, as well as capable human capital and 
enforcement institutions.  
282.  He added that there  were a number of do mestic statutes and multilateral treaties, to which WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Timor -Leste was a party, which addressed IP enforcement, as descri bed in this section . Specifically, 
the Cust oms Code (Decree -Law No. 14/2017 of 5 April 2017 ) set forth the application of prohibitions 
or restrictions with regard to goods presented to customs on the grounds of morality and public 
security, health protection, protection of the lives of people and animals, preservation of vegetables, 
the environment, protection of national artistic, historic,  or archaeological property, or protection of 
industrial and commercial property.  Responding to Member's question on Article 59 that  stated that 
industrial and commercial property could  be prohibited or restricted , he informed that 
the Government intended to grant IPR  holders in Timor -Leste the right to lodge an application for 
the suspension of goods suspected of being counterfeit or pirated .  
- Civil judicial procedures and remedies  
283.  The representative of Timor -Leste informed that t here were no civil judicial procedures and 
remedies spec ifically prepared to address IP -related rights. In response to a Member's question, 
he added that in a dispute regarding IPRs , the parties concerned could have recourse to the general 
civil procedure to safegu ard their rights, including by means of "unspecified precautionary measures" 
to prevent infringement of IPRs. He confirmed that his Government intend ed to develop and ensure 
the enforcement of the provisions of the TRIPS Agreement applicable to LDCs,  including 
the establishment and enforcement of Civil judicial procedures and remedies consistent with Part  III, 
Section 2  of the TRIPS Agreement . 
- Administrative procedures and remedies  
284.  The representative of Timor -Leste informed that t here were no administrative procedures and 
remedies in place. In response to a Member's question, he confirmed that his Government intend ed 
to develop and ensure the enforcement of the provisions of the TRIPS Agreement applicable to LDCs,  
including the establishment and enforcement of administrative procedures consistent with Part III, 
Section 2  of the TRIPS Agreement . 
- Provisional measures  
285.  The representative of Timor -Leste informed that t here were no provisional measures in place. 
In response to a Member's question, he confirmed that his Government intend ed to develop and 
ensure the enforcement of the provisions of the TRIPS Agreement applicable to LDCs,  including the 
establishment and enforcement of provisional measures  consistent with Part III, Se ction 3  of 
the TRIPS Agreement.  
- Special border measures  
286.  The representative of Timor -Leste informed that u nder Article 11 of Decree -Law No. 9/2004 
of 19 May 2004  on "Import, Storage and Circulation of Products Subject to Selective Excise Tax ", 
companies could  issue a supporting document for every good cleared from a Customs Bonded 
Warehouse (Loading Receipt) that s hould  include , among other information, information on the trade 
name of the product.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  287.  Furthermore, UNTAET Executive Order No. 2002/ 12 of 18 May 2002 on "Trade of goods 
bearing the national symbols of Timor -Leste", also included provisions on enforcement  at the border . 
Article 3.1 of the Order established that failure to fully and immediately comply with this Order 
constituted an offense and resulted in its prompt enforcement by all lawful means available to 
the Timor -Leste Public Administration . Under Article 3.4, these provisions were in addition to, and 
in no way limited, substituted, or intervened with , prosecuti ng any criminal proceeding or the 
imposition of any criminal sanctions pertaining to the unauthorized use of trademarks, trade names, 
and similar items of intellectual and industrial property rights with respect to the national symbols.  
288.  Additionally, Artic le 27 of the Convention on International Civil Aviation provided for 
exemption from seizure on patent claims . While engaged in international air navigation, any 
authorized entry of aircraft of a contracting State into the territory of another contracting S tate or 
authorized transit across the territory of such State with or without landings sh ould not entail any 
seizure or detention of the aircraft or any claim against the owner or operator thereof or any other 
interference therewith by or on behalf of such  State or any person therein, on the ground that 
the construction, mechanism, parts, accessories or operation of the aircraft was an infringement of 
any patent, design, or model duly granted or registered in the State whose territory was entered by 
the air craft, it being agreed that no deposit of security in connection with the foregoing exemption 
from seizure or detention of the aircraft sh ould in any case be required in the State entered by such 
aircraft. Pursuant to Article 15 of the World Health Organiz ation (WHO) Framework Convention on 
Tobacco, addressing illicit trade in tobacco products, the parties recognized that the elimination of 
all forms of illicit trade in tobacco products, including smuggling, illicit manufacturing and 
counterfeiting, and the  development and implementation of related national law, in addition to 
sub-regional, regional and global agreements, were essential components of tobacco control. With 
Timor -Leste being party to both Conventions, these provisions applied as  reflected  in its domestic 
legal framework.   
289.  He confirmed that his Government intended to develop and ensure the enforcement of 
the provisions of the TRIPS Agreement applicable to LDCs, including the establishment and 
enforcement of special border measures procedures con sistent with Part III, Section 4 of the TRIPS 
Agreement.  
- Criminal p rocedures  
290.  The representative of Timor -Leste informed that  there are no criminal procedures in place. In 
response to a Member's question , he confirmed that his Government intended to develop and ensure 
the enforcement of the provisions of the TRIPS Agreement applicable to LDCs, including 
the establishment and enforcement of criminal  procedures consistent with Part III, Section 5 of 
the TRIPS Agreement.  
291.  The representative of Timor -Leste  requested that, in addition to the benefits of special and 
differential treatment for least -developed countries under the WTO TRIPS Agreement and the various 
Ministerial Conference Declarations , including und er the Doha Declaration on the WT/ACC/SPEC/TLS/5/Rev.1  
 
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  WTO TRIPS  Agreement and Public Health (document WT/MIN(01)/DEC/2), the Hong Kong Ministerial 
Declaration (document WT/MIN(05)/DEC, paragraph 47), the TRIPS Council Decision of 11  June 
2013 "Extension of the Transition Period under Article 66.1 for Least Developed Country Members" 
(document IP/C/64), the Working Party grants Timor -Leste  a transitional period until 2026 to 
undertake the relevant legislative reform and equip the Government to fully implement the 
obligations of th e WTO TRIPS Agreement.   
292.  [The representative of Timor -Leste  confirmed that, should a transition period be granted,  
Articles  3, 4 and 5 of the WTO Agreement on Trade -Related Aspects of Intellectual Property Rights, 
providing for, inter alia , national treatment and MFN treatment would apply from the date of 
accession, and Timor -Leste  would ensure that any changes made i n its laws, regulations and practice 
in the transitional period would not result in a lesser degree of consistency with the provisions of the 
WTO Agreement on Trade -Related Aspects of Intellectual Property Rights that existed on the date 
of accession.  He added that existing rates of infringement would not, in his view, increase 
significantly over this transition period, and that any infringement of intellectual property rights 
would be addressed immediately in cooperation and with assistance from the affect ed right holders.  
He confirmed that the Government of Timor -Leste  would seek all available technical assistance to 
ensure that its capacity to enforce fully its TRIPS -consistent legal regime, upon the expiration of the 
transition period, was assured, and t hat Timor -Leste  would make available TRIPS  legislation in draft 
and promulgated form to the WTO TRIPS Council for circulation to interested Members.  
The representative of Timor -Leste had presented the Action Plan with details of the steps that had 
to be ta ken in order to achieve compliance with the WTO TRIPS Agreement ( Annex 19). The Working 
Party took note of these commitments. ] 
293.   [The representative of Timor -Leste  confirmed that Timor -Leste  would fully apply the WTO 
Agreement on Trade -Related Aspects of Intellectual Property Rights  no later than 1 January 2027 , 
in accordance with the Action Plan in Annex 19, with the understanding that during this period , 
protection for intellectual property rights listed in paragraphs [291] and [281] would be applied in 
Timor -Leste . The Working Party took note of th is commitment. ] 
VI. POLICIES AFFECTING TRADE IN SERVICES   
294.  The representative of Timor -Leste informed that, d epending on the nature and the length of 
the activities to be carried out in Timor -Leste, foreigners and foreign entities  were able to perform 
activities and provide services in the country provided that they establish ed a legal presence in 
Timor -Leste, through the registration of permanent representation of a foreign entity as a branch or 
as a local affiliate  (see ANNEX 20ANNEX 20).  
295.  In this regard, h e explained that, for a non -resident entity to be permanently established  in 
Timor -Leste, it had to, inter alia : (i) incorporate a local company or register a local permanent 
representation (branch) in Timor -Leste; (ii) have a fixed place of business in Timor -Leste; (iii) hire 
personnel to perform work in Timor -Leste for a period exceeding 60 days in aggr egate within any 
given 12 -month period; and /or, (iv) maintain an entity that could be deemed as a "dependent agent" WT/ACC/SPEC/TLS/5/Rev.1  
 
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  in Timor -Leste. Foreign service providers  had to comply to four types of requirements which also 
applied to local operating businesses: (i) obtaining a Taxpayer Identification Number (TIN); 
(ii) obtaining a business licen ce, when a licen ce or an authorization was required to exercise activi ty; 
(iii) registering the business entity with the Commercial  Registr ation and Verification Service 
(SERVE) ; and (iv) comply ing with continuing obligations to register particular facts or events that 
apply to each type of business entity.  
296.  A Member enquired about the estimated timeframe that foreign service providers would 
normally face in complying with these requirements, and whether such requirements and 
the timeframe differed for domestic service providers. The representative of Timor -Leste said that 
documents required for submission by foreign entities included  the: (i) Act of Deliberation: for 
foreign companies who were interested in establishing and registering their firm and creat ing a 
Permanent Establishment (PE) for the  company; (ii) original passport, company 's bylaw, and 
marriage certificate (if applicable), whic h had to be certified by a notary in the country of origin, 
prior to being submitted to Timor -Leste 's mission for final certification attesting its legitimacy ; and 
(iii) identified location for business activity.  Once these documents were submitted, should  they 
satisfy the above requirements, SERVE processed them in five business days.  He added that 
domestic and foreign nationals and legal entities had to comply with the same requirements as 
foreigners or foreign entities, with the exception of the Act of D eliberation, which was only required 
for foreign entities.   
297.  Timor -Leste's measures affecting movement of natural persons are contained in ANNEX 21.  
298.  The representative of Timor -Leste informed that, Article 54.4 of the Constitution  and 
Article  7.1 of Law No. 13/2017 of 5 June 2017 on "Special Regime for Determination of Ownership 
of Immovable Property"  limited land ownership to national citizens of Timor -Leste. Article 2 of 
the Legal Framework on Real Estate Property (Law No.  1/2003 of 10 March 2003) elaborated that 
landowners could be either national citizens or the State . Furthermore, Law No.  13/2017 of 
5 June 2017 on "Special Regime that Defines the Ownership of Real Estate" (Land Law) provided 
that only legal entities 100% owned by Timor -Leste nationals were entitled  to purchase and own 
land in Timor -Leste.  Foreign persons conducting legal a ctivities in Timor -Leste could only  lease land 
for up to 50  years. Under Article 25.1 of the Private Investment Law, private investors were entitled 
to lease land for 50 years , renewable for periods of 25 years to a total of 100 years . For other 
relevant sources of laws regarding interests in real estate, see  ANNEX 22. 
299.  There were a number of Government ministries, agencies and  professional associations that 
played a role in the regulation  of services activities. The principal Governmental bodies were  the: 
(i) Ministry of Tourism, Commerce and Industry ; (ii) Ministry of Finance; (iii) Ministry of Public 
Works, Transports, and Communication; (iv) Ministry of Agriculture and Fisheries; (v) SERVE; and, 
(vi) Ministry of Health.  The full list of Ministries i s contained in  ANNEX 23. He added  that Timor -Leste 
had its own list of Economic Activities Classification (EAC) published as an annex to  Decree -Law 
No. 34/2017 of 27 September 2017 on the "Licensing of Economic Activities ". For purposes of the 
WTO accession process, the  United Nations (UN) Central Product Classification, as recorded in WT/ACC/SPEC/TLS/5/Rev.1  
 
- 80 - 
 
  document MTN.GNS/W/120 of 10 July 1991, was employed.  
300.  Decree -Law No. 34/2017 also prohibit ed commercial activities including wholesale, retail, 
general commerce,  importing and exporting of goods and supply of services as a principal or 
commercial agent without authorization. In addition, specialized legislation prohibit ed the carrying 
out of certain businesses without a special licen ce issued by regulatory agencie s.  
301.  For example, commercial banks operating in Timor -Leste had to obtain a licen ce from 
the Central Bank of Timor -Leste  (CBTL)  and have a minimum paid -up capital of US$ 2,000.00. 
Insurance companies were also subject to licensing, should be established in a form of a limited 
liability enterprise / joint stock company , and have paid -up capital of more than US$ 500,000.00. 
Companie s working in private security services were required to have a CEO with Timor -Leste 
nationality.   
302.  Legal persons in the business of social games, slot machines, and traditional games had to 
obtain a prior authorization to operate and had to be legally incor porated under the laws of 
Timor -Leste. They had to: (i) prove their good reputation and demonstrated technical, economic 
and financial capacity to develop this activity; (ii) apply for a concession to develop this activity, and 
(iii) have a minimum paid -up capital of US$ 400,000 , as well as a banking account balance no le ss 
than US$ 250,000.  
303.  Referring to the section on "Investment regime", he added that  other important areas where 
regulatory licensing was required include d, amongst others, oil and gas upstream and downstream 
activities (subject to licensing/authorization by the National Petroleum Authority  under Law 
No. 3/2005 on Petroleum Activities ) and mining.  Carrying o ut a commercial activity without 
the appropriate authorization was an offence with a penalty between US$  1,000 an d US$  10,000 , to 
be imposed on those who d id not have an authorization .  
304.  The representative of Timor -Leste noted that the  general policy was to promote open 
competition in all  services  sectors. Investors or companies could  employ foreign personnel or 
experts. The Government policy requ ired that all major business es ensure d that a minimum 
percentage of the value of labour in all major projects in Timor -Leste was dedicated to the 
employment or accredited training  of citizens of Timor -Leste.  He further informed that there were 
no measures in place inconsistent with the most -favoured -nation (MFN) treatment. In response to 
a question from a Members, he clarified that it was the p olicy of the Government, as reflected in the 
National Employment Strategy 2017 -2030 and the Private Investment Law,  to promote the 
employment and training of Timorese citizens. As per Article 23(2)(c) of the Private Investment Law, 
investors c ould have access to greater benefits as negotiated in Special Investment Agreements with 
the State when employing and training T imorese citizens. The Government negotiate d with investor s 
to define special benefits of different nature. Such bilateral negotiations could  include percentages 
of labo ur. He clarified that any investment project of a value of over one million dollars 
(US$ 1,000, 000) was considered a major project.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  305.  At the same time , monopoly in electricity distribution and water supply still exist ed. The Public 
Electricity Company of Timor -Leste (EDTL-EP) operate d in this area . For social reasons, there was 
also a public funeral transportation service provided by the State , given the lack of coverage and 
price of private services.  Foreign nationals were also prohibited from carrying o ut some commercial 
activities and therefore  could not obtain a licence to carry o ut business in the  reserved categories, 
as described in the section on "Investment regime" . The list of occupations that could not be 
performed by foreign nationals was as follows: (i) serv er in a bar, restaurant, hote l and shops; 
(ii) public drivers; (iii) receptionist; (iv) housekeeper, except individuals qualified to work with 
vulnerable people or child ren; (v) hairdresser, except foreign nationals with specific training; 
(vi) security guard; (vii) clerk; (viii) ware house supervisor; (ix)  assistant in any job; (xi) photocopier 
work; (xii) gardener; (xiii) traditional market  and street vendor. Artisanal/traditional fishing permits 
were also granted only to Timor -Leste nationals  (citizens and legal entities) . Activities  that were 
reserved to nationals also included providing universal postal service , public communication services , 
and the development and exploration of national parks, marine or land reserves or other protected 
areas.  
306.  Further, h e informed  that t he existing limitation s on the participation of foreign capital were 
the following: (i) press services sector/media , where  foreign capital was limited to up to 30% of the 
share capital; and (ii) a ccess to road public carrier , where the  business was only available to 
Timor -Leste citizens or to legal persons with over 50% of the share capital controlled by Timor -Leste 
citizens .  
307.  With re spect to  requirements on the specific type of legal entity through which a service may 
be supplied, he noted that, in the telecommunications sector , specific regulations applied that 
required for the service provider to be registered as a corporate body in Timor -Leste and to be 
registered as such within the National Regulatory Authority. In the air transport  sector , services 
could only be provided by legal persons incorporated under the laws of Timor -Leste. In the 
construction sector, the certification and registration of civil construction and technical consulting 
companies were mandatory for them to be able to bid for public procurement tenders.  With respect 
to the certification and registration requirements applied to such companies, the representative of 
Timor -Leste clarified that they were suject to the requirements established in the Decree -Law 
No. 16/2017 of 17 May 2017 on "Business Registration"  and Decree -Law No. 34/2017 of 
27 September 2017 on "Licensing for Economic Activities"  (as amended by Decree -Law No. 83/2022 
of 23 November 2022 ).  
308.  Detailed i nformation on regulation in specific services sectors is contained in ANNEX 24 . 
309.  Referring to ANNEX 24 , a Member asked for clarification on the requirements  applied to  
foreign lawyers who had  to be registered with the Centre for Legal Training (CLT) , including the 
requirement to h ave knowledge of Ti mor-Leste 's legal framework , and how this knowledge was 
assessed by the CLT . The representative of Timor -Leste explained that , initial training for careers in 
the judiciary, including public prosecution and public defence , was held at the Legal and Judicia l 
Training Centre (CFJJ/CLT) of the Ministry of Justice. Exceptionally, and until the establishment of WT/ACC/SPEC/TLS/5/Rev.1  
 
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  the Timor -Leste Bar Association, the CLT maintain ed all competencies for the training of lawyers.  
The examination w as held at the CLT , where the test was conducted by a panel nominated directly 
by the Minister of Justice.  The examination was composed of three tests: (i) a written test aim ed to 
assess the knowledge and understanding of the resolution of civil , commercial and criminal  law 
cases, as well as civil and criminal procedural law); (ii) an interview test , which aim ed to evaluate 
the candidate 's legal knowledge, critical thinking ability  and argumentation; and (iii) a 
psychological  test. 
310.  A Member also asked to provide information on the regulatory  framework for  environmental 
services relating to wastewater treatment, disposal and sanitation . The representative of 
Timor -Leste responded that this services sector was undergoing reforms with an aim to  develop a 
modern legal framework. He referred to Articles 41 -42 of Decree -Law No. 26/2012 of 4 July 2012  
on "Basic Law of the Environment" which determined the State's competence to establish the 
mechanisms necessary to ensure the appropriate treatment of domestic, commercial and industria l 
wastewater and sewage effluents. The Law required that a ny establishment or plant which evacuate d 
wastewater had to  ensure that it was cleaned in accordance with the environmental standards.  
The import of hazardous waste was prohibited , while t he identification, control, production, 
transportation, storage, export , and use of hazardous waste was subject to special legislation . 
Furthermore, considering the environmental impact of urban solid waste on fresh water, the 
representative of Timor -Leste also referred to the solid waste management principles established by 
Article 10 of Decree -Law No.  2/2017 of 22 March 2017 on "Urban Solid Waste Management System"  
which provided that the provision of the urban waste management service obey ed the principles of 
public health and the environment; promotion of universality and equal access; quality and 
continuity of service and protection of users' interests; economic and financial sustainability of 
services; user -payer principle; responsibility of the citizen s adopting preventive behaviours  in the 
matter of waste production, as well as practices that facilitate their reuse, recycling or other forms 
of valorisation ; transparency in the provision of services; ensuring efficiency and continuous 
improvement in the u se of the associated resources, responding to the evolution of the technical 
requirements and the best environmental techniques available; and promoting economic and social 
solidarity, correct territorial planning and regional development.  
311.  Referring to ANNEX 24 , a Member also enquired on which services sectors/sub -sectors were 
considered as sensitive and highly sensitive . The representative of Timor -Leste responded that 
Timor -Leste ha d a straightforward economic structure, while it was still in the early stages of 
developing policies  and legislation on the services sectors. At the same time,  as described in the 
section on "Investment regime ", according to Timor -Leste 's Negative Investment List , the following 
activities  were prohibited for both national and foreign investment:  (i) highly sensitive: criminal 
activities,  activities related to environmental protection areas, arms and ammunition production and 
distribution; and  (ii) sensitive: activities related to the offense of traditional cu stoms,  postal and 
courier services, activities related to funeral services.  Other than these , Timor -Leste adopt ed a 
liberalized approach to the  services sector, with certain limitations on market access and national 
treatment applicable to foreign investme nts and foreign nationals.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  312.  [In response to a request from a Member, the representative of Timor -Leste inform ed that, 
on 13 June 2022 , his Government  had joined the WTO Initiative  on Services Domestic Regulation , 
as the first acceding government and an LDC.  Timor -Leste would become participant of the 
Declaration on Services Domestic Regulation upon accession. The Working Party took note of this 
commitment.]  
VII. TRANSPARENCY  
- Public ation  of information on trade  
313.  The representative of Timor -Leste informed that legal instruments were only effective upon 
publication  in "Jornal da República" . Legal instruments were also publ ished online on the website of 
"Jornal da República ", which was part of the website of the Mini stry of Justice at  www.mj.gov.tl . 
Most of the legal instruments were made available by provision of a link to the relevant issue of 
"Jornal da República".  
314.  The website of "Jornal da República"  also contained  a webpage  of the Office of Legal Affairs of 
the United Nations Integrated Mission in Timor -Leste (UNMIT) : 
http://www.jornal.gov.tl/lawsTL/index -e.htm , which  include d the UNTAET  Regulations enacted 
between October 1999 and May 2002 , and a  webpage with  legislation from independence from 
May 2002 until the UN ceased to update the website in mid -2012: http://www.j ornal.gov.tl/lawsTL/ -
RDTL -Law/index -e.htm . It include d links to the official  legal instrument s in Portuguese and, in some 
cases, links to unofficial English translations.  
315.  In addition, the website of the Government of Timor -Leste (http://timor -
leste.gov.tl/?lang=en ) contain ed a selection of legislation under  six categories. The website was 
regularly updated and provided information on the main policy decision taken weekly by the Council 
of Ministers, in thre e languages : Portuguese, Tetum and English. Some of the  websites of the 
individual Ministries, and the website  of the Central Bank of Timor -Leste (CBTL) , also contain ed links 
to relevant  legislation.  
316.  A Member asked if  Timor -Leste ha d in place already  or intend ed to put in place procedures to 
allow for comment on legal instruments before they were finalized , and if there were any public 
consultations on draft or interim laws and decree -laws before they were finalized and published . 
The represent ative of Timor -Leste responded that during the process of drafting  of the different 
legislations, the Government could conduct public consultation s with relevant stakeholders. 
The conduct of such consultations was at the discretion of the Government.  
317.  [The representative of Timor -Leste confirmed that, upon accession, Timor -Leste  would fully 
and promptly implement Article  X of the General Agreement on Tariffs and Trade 1994, Article III of 
the General Agreement on Trade in Services, Article  63 of the WTO Agreement on Trade -Related 
Aspects of Intellectual Property Rights, and other transparency provisions in the WTO Agreements 
requiring notification and/or publication. He further confirmed that no law, regulation, judicial 
decision, administrative ruling, o r other measure of general application pertaining to or affecting WT/ACC/SPEC/TLS/5/Rev.1  
 
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  trade in goods, services and TRIPS would become effective prior to its publication in "Jornal da 
República" , along with the official websites of the relevant ministries . The publication of such laws, 
regulations and other measures would include the effective date of these measures and list the 
products and/or services affected by the particular measure. The  Working Party took note of 
these  commitments. ] 
- Notifications  
318.  The representative of Timor -Leste informed that his Government recognize d the importance 
of notification requirements under the WTO Agreements. Thus, it aspire d to submit all initial 
notifications required by the WTO Agreements within six months from the members hip date.  Any 
laws, regulations, or other measures subsequently enacted by Timor -Leste, and which were required 
to be notified pursuant to the WTO Agreement s, would be notified in a time and manner consistent 
with WTO requirements.  
319.  Responding to a questio n from a Member on how the Government intended to manage its 
notification obligations, the representative of Timor -Leste explained that, once Timor -Leste became  
a WTO Member, it would adhere to its initial notification obligations and would immediately not ify 
any further changes to Members in regard to each amendment in its laws, legislations or other 
measures subsequently enacted in accordance with the WTO  rules. 
320.  A Member asked to clarify if the Permanent Secretariat on the Accession to the WTO, 
referenced  in paragraph [85], would be responsible for notifications . In response, the representative 
of Timor -Leste informed about ongoing  discussions on the competence of the Secretariat as a 
national institution that  would be in charge of coordinating and implementing the notification 
obligations.  
321.  [The representative of Timor -Leste confirmed that, at the latest , within six months of the entry 
into force of the Protocol of Accession, Timor -Leste  would submit all initia l notifications required by 
the WTO  Agreement.  Any laws, regulations, or other measures subsequently enacted by  
Timor -Leste , and which were required to be notified pursuant to the WTO Agreement, would also be 
notified in a time and manner consistent with W TO requirements. The Working Party took note of 
these  commitments. ] 
VIII.  TRADE AGREEMENTS  
322.  The representative of Timor -Leste informed that Timor -Leste was not a party to any customs 
union or free trade agreement or to any other bilateral or multilateral agreements relating to trade  
in goods and services , investment or intellect ual property.  It did  not belong to any  regional trade or  
labour market integratio n agreement.  The country  was a party to the following agreements: 
(i) Agreement between Timor -Leste and Indonesia on Traditional Border Crossings and Regulated 
Markets, signed in Jakarta, Indonesia, on 11 June 2003; and, (ii) Cooperation Agreement between 
Member States of the Community of Portuguese Language Countries (CPLP) on Cinema and Audio -
visuals, signed in Luanda, Angola, on 14 May 2005 , as well as a number of bilateral agreements  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  (including BITs) , listed in ANNEX 25. Responding  to Member's question, he clarified that t here were 
no benefits/privileges associated with trade in services in the se bilateral agreements.  Timor -Leste 
also benefit ed from the following unilaterally granted preferential trade arrangements for its exports:  
• US Scheme of General System of Preferences;  
• EU Generalized System of Preferences;  
• Australia 's General System of Preferences; and  
• New Zealand 's General System of Pr eferences.   
323.  At the same time, the Government recognized the importance of regional cooperation. Since 
2011, when Timor -Leste had officially applied to become a member of ASEAN, it had been 
undertaking the necessary institutional and legal reforms towards f ull compliance with  the rules of  
the ASEAN Economic Community.  
324.  In response to Member's question on his Government's plans to initiate trade negotiations to 
conclude  trade agreement s, the representative of Timor -Leste said that the Government was willing 
to consider entering into  such negotiations and eventually sign trade agreements, to safeguard 
mutual interests and enhance mutual benefits, while honouring  commitments inherent to W TO 
accession. He elaborated that the Government put forth the necessary technical preparations  to 
establish one negotiating t eam for Timor -Leste to join  multilateral and bilateral trade agreements . 
Such effort was reflected in a number of  trade-related tra inings completed by government officials . 
In parallel, considering Timor -Leste 's commitment to accede to the WTO and ASEAN, the 
Government continue d to work on strengthen ing its institutional and legal framework  to be in 
conformity with the se agreements.  The state of play regarding Timor -Leste's ASEAN accession  is 
provided in ANNEX 26. 
325.  The list of multilateral organizations  and trade -related programs of other multilateral 
organizations  to which T imor-Leste was a member /participant  is provided in ANNEX 23.  
326.  [The representative of Timor -Leste confirmed that his Government would observe the relevant 
provisions of the WTO Agreement, including Article XXIV of the General Agreement on Tariffs and 
Trade 1994, the 1979 GATT Decision on Differential and More Favourable Treatment, Reciprocity 
and Fulle r Participation of Developing Countries (Enabling Clause) and Article V of the General 
Agreement on Trade and Services in its trade agreements and would ensure that the applicable 
provisions of the WTO Agreements for notification, consultation, and other r equirements concerning 
free trade areas, customs unions and other preferential trade arrangements, of which Timor -Leste  
was, or may become, a member, were met from the date of accession. The Working Party took note 
of these commitments. ] 
CONCLUSIONS  
327.  The Wo rking Party took note of the explanations and statements by Timor -Leste  concerning 
its foreign trade regime, as reflected in this Report. The Working Party took note of the commitments WT/ACC/SPEC/TLS/5/Rev.1  
 
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  by Timor -Leste  in relation to certain specific matters which are reprod uced in paragraphs [XXX and 
XXX] of this Report. The Working Party took note that these commitments had been incorporated in 
paragraph 2 of the Protocol of Accession of Timor -Leste  to the WTO.  
328.  Having carried out the examination of the foreign trade regime of Timor -Leste  and in light of 
the explanations, commitments and concessions made by the representative of Timor -Leste , the 
Working Party reached the conclusion that Timor -Leste  be 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 Timor -Leste 's Schedule of Concessions and Commitments on Goods 
(document  WT/ACC/ TLS/XXX/Add.1) and its Schedule of Specific Commitments on Services 
(document  WT/ACC/ TLS/XXX/Add.2) that are annexed to the draft Protocol. It is proposed that these 
texts be adopted by the Ministerial Conference when it adopts the Report. When the D ecision is 
adopted, the Protocol of Accession would be open for acceptance by Timor -Leste  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 negotia tions for the accession of Timor -Leste  to the 
Marrakesh Agreement Establishing the WTO.  
_______________   WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX  1  
Laws, Regulations and Other Information Provided to the Working Party  by Timor -Leste  
Legislation/Regulation  Legislation Notice  
ECONOMIC POLICIES  
UNTAET Regulation No. 2001/14, On the Official Currency and Legal Tender of 
East Timor  WT/ACC/TLS/5  
Law No. 1/2003, Legal Framework on Real Estate Property (Land Law)  WT/ACC/TLS/5  
Decree -Law No. 14/2003, Legal Regime for Public Companies  WT/ACC/TLS/5  
Decree -Law No. 20/2003, Legal Tender in Timor -Leste  WT/ACC/TLS/5  
Decree -Law No. 19/2004, Legal Regime of Property -Official Allocation and Leasing 
of Private Property of the State  WT/ACC/TLS/5  
Law No. 4/2005, Domestic Investment La w WT/ACC/TLS/5  
Law No. 5/2005, Foreign Investment Law  WT/ACC/TLS/5  
Government Decree No. 5/2005, Rules of Procedure for Domestic Investment  WT/ACC/TLS/9  
Government Decree No. 6/2005, Rules of Procedure for Foreign Investment  WT/ACC/TLS/5  
Law No. 8/2005, Petroleum Tax  WT/ACC/TLS/5  
Law No. 13/2005, Petroleum Activities Law  WT/ACC/TLS/5  
Decree -Law No. 7/2005, Public Tender of Petroleum Contract  Awards  WT/ACC/TLS/5  
Decree -Law No. 28/2008, Regulate Public Supply of Essential Goods  WT/ACC/TLS/5  
Government Resolution No. 20/2008, on Public Supply of Essential Goods  WT/ACC/TLS/7  
Decree -Law No. 20/2008, National Petroleum Authority  WT/ACC/TLS/5  
Government Decree No. 13/2008, Regulation of Government Intervention in Public 
Supply and Prices of Essential Goods  WT/ACC/TLS/5  
Ministerial Diploma No. 6/2008, Price Stabilization Measures, to Combat Inflation 
and Speculative Prevention; Regulation on Government Intervention in the Market  WT/ACC/TLS/5  
Public Instruction No. 4/2009, Importation and Exportation of Cash  WT/ACC/TLS/5  
National Strategic Development Plan 2011 -2030 WT/ACC/TLS/ 27 
Government Resolution No. 13/2012, Reg ime for Setting  Maximum Sales Margin of 
Certain Essential Goods  WT/ACC/TLS/7  
Ministerial Diploma No. 6/MTC I/III/2011, Regulation on Sales Price of Local Maize  WT/ACC/TLS/7  
Law No. 4/2011, Crimes of Monopolization and Speculation  WT/ACC/TLS/5  
Ministerial Diploma No. 11/MTCI/VI/2011, Regulate Public Supply of Rice and 
Other Essential Goods  WT/ACC/TLS/7  
Law No. 5/2011, Organic Law of the Central Bank of Timor -Leste of Timor -Leste 
(CBTL)  WT/ACC/TLS/5  
Decree -Law No. 29/2011, Fair Price  WT/ACC/TLS/5  
Decree -Law No. 31/2011, Timor Gap – Timor Gas and Petroleum, Public Enterprise  WT/ACC/TLS/9  
Law No. 14/2011, P rivate Investment Law  WT/ACC/TLS/5  
Law No. 17/2011, Anti -Money Laundering and Counter Financing of Terrorism Law  WT/ACC/TLS/5  
Law No. 4/2012, Labour Code  WT/ACC/TLS/5  
Decree -Law No. 1/2012, Downstream Sector  WT/ACC/TLS/5  
Law No. 5/2012, Strike Law  WT/ACC/TLS/5  
Ministerial Diploma No. 14/2012, Public Supply of Rice  WT/ACC/TLS/7  
Decree -Law No. 42/2012, Legal Framework for Public Private Partnerships  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2013, Regulation on Public Supply  of Rice and 
Standardisation of Price  WT/ACC/TLS/7  
Ministerial Diploma No. 2/2013, Public Supply of Rice in Oecusse Ambeno  WT/ACC/TLS/7  
Law No. 5/2013, Anti -Money Laundering and Counter Financing of Terrorism Law 
(1st Amendment)  WT/ACC/TLS/5  
BCTL Regula tion No. 1/2013, Licensing and Supervision of Money Transfer 
Operators  WT/ACC/TLS/9  
Decree -Law No. 2/2014, 1st Amendment to Decree -Law No. 42/2012 of 7 
September 2012 on the Approval of the Legal Framework for Public Private 
Partnerships  WT/ACC/TLS/7  
Decree -Law No. 8/2014, Legal Regime for Public -Private Partnerships  WT/ACC/TLS/5  
Decree -Law No. 16/2014, Financial Intelligence Unit  WT/ACC/TLS/5  
Decree -Law No. 24/2014, Legal Regime to Establish Tourism Policy for Timor -
Leste  WT/ACC/TLS/7  
Decree -Law No. 26/2014, Establishment of the National Logistics Center  WT/ACC/TLS/21  
Decree -Law No. 17/2015, National Payment System  WT/ACC/TLS/7  
Government Resolution No. 43/2015, Government Participation in the Investment 
of the Extraction of Cement a nd Limestone  WT/ACC/TLS/5  
Government Resolution No. 44/2015, Participation of Timor Gap, Public Enterprise, 
in Oil Exploration  WT/ACC/TLS/7  
Decree -Law No. 45/2015, Establishment of Investment and Export Promotion WT/ACC/TLS/7  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Legislation/Regulation  Legislation Notice  
Agency, Public Institute (TradeInvest)  
Decree -Law No. 1/2016, National Petroleum Authority  WT/ACC/TLS/5  
Government Decree No. 7/2016, National Labour Council  WT/ACC/TL S/7 
Law No. 8/2016, Consumer Protection Law  WT/ACC/TLS/5  
Decree -Law No. 32/2016, Legal Regime for Offshore Oil Operations in Timor -Leste  WT/ACC/TLS/5  
Government Decree No. 13/2016, Regulation on Bank Account for PPP of T íbar 
Port WT/ACC/TLS/7  
ANPM Regulation No. 2/2016, Downstream Commercialization Activities (regulates 
on registration and licensing for selling of fuels, biofuels and lubricants)  WT/ACC/TLS/9  
Government Resolution No. 36/2016, Exploration of Construction Material 
Reserved for Local Companies  WT/ACC/TLS/7  
Ministerial Diploma No. 64/2016, Specific Rules for Licensing of Mineral Exploration 
Activities  WT/ACC/TLS/9  
Decree -Law No. 39/2016, Sub -division of Onshore Exploration Block  WT/ACC/TLS/7  
Government Resolution No. 9/2017, National Policy on ICT in 2017 -2019 WT/ACC/TLS/9  
Government Resolution No. 16/2017, National Tourism Policy 2030  WT/ACC/TLS/5  
Public Instruction No. 4/2017, Importation and Exportation of Cash  WT/ACC/TLS/9  
Law No. 8/2017 , Expropriation for Public Purposes  WT/ACC/TLS/9  
Law No. 10/2017, Commercial Companies Law  WT/ACC/TLS/5  
Joint Ministerial Diploma No. 32/2017, Regulation of Price for the Re -Sale of Rice  WT/ACC/TLS/7  
Law No. 11/2017, Migration and Asylum  WT/ACC/TLS/9  
Law No. 13/2017, Special Regime for Determination of Ownership of Immovable 
Property (Land Law)  WT/ACC/TLS/5  
Government Decree No. 28/2017, Model Constitutive Acts of Commercial 
Companies  WT/ACC/TLS/5  
Government Decree No. 27/2017, Establis hment of the Criteria for the Obligation 
of Supervisory Body or External Auditor in Commercial Companies  WT/ACC/TLS/5  
Government Resolution No. 44/2017, National Employment Strategy (2017 – 
2030)  WT/ACC/TLS/5  
Law No. 15/2017, Private Investment Law  WT/ACC/TLS/5  
Regulation No. 3/2017, Minting and Use of Coins  WT/ACC/TLS/7  
2017 Timor -Leste Investment Guide  WT/ACC/TLS/21  
Government Decree No. 4/2019, First Amendment to Government Decree 
No. 2/2018, on Procedure Regulation for Private Investment  WT/ACC/TLS/7  
WT/ACC/TLS/ 27 
Decree -Law No. 16/2019, 1st Amendment to Decree -Law No. 3/2011 of 26 
January 2011, Statutes of the National Commercial Bank of Timor -Leste, S.A.  WT/ACC/TLS/7  
Law No. 4/2019, on Special Labor and Migration Regime Appl icable to the Bayu -
Undan Project; additional applicable provisions in Law No. 11/2017, Migration and 
Asylum  WT/ACC/TLS/5  
Law No. 1/2019, 1st Amendment to the Petroleum Activities Law No.  13/2005, of 
2 September 2005  WT/ACC/TLS/7  
Law No. 6/2019, 2nd Amendment to the Petroleum Activities Law No. 13/2005, of 
2 September 2005  WT/ACC/TLS/9  
Resolution No. 9/2020, Integrated Project on Unique Identifier of Timorese citizens 
and residents  WT/ACC/TLS/15  
Government Resolution No. 29/2020, Establishment of th e Commission for 
Coordination and Monitoring of Institutional Reforms  WT/ACC/TLS/21  
Government Resolution No. 38/2020, Public Administration Reform Program 2019 -
2023 WT/ACC/TLS/17  
Decree -Law No. 8/2021, Legal Regime for Classification and Qualification o f Soil WT/ACC/TLS/ 27 
Law No. 10/2021, First Amendment to Law No. 11/2017 on "Migration and 
Asylum"  WT/ACC/TLS/21  
Economic Recovery Plan of Timor -Leste 2020 -2023 WT/ACC/TLS/19  
CBTL Instruction No. 8/2009, Approval of Public Instruction No. 4/2009 o n 
"Importation and Exportation of Cash " WT/ACC/TLS/19  
CBTL Instruction No. 5/2017, Customer Identification, Record Keeping and Transaction 
Report  WT/ACC/TLS/19  
Decree -Law No. 9/2022, Legal Framework for Building and Urbanization  WT/ACC/TLS/23  
Decree -Law No. 14/2022, Land Registry Code  WT/ACC/TLS/23  
Government Resolution No. 34/2022, Private Sector Support  WT/ACC/TLS/2 7 
Public Financial Management Reform Strategy  WT/ACC/TLS/2 7 
Insolvency Law No. 1/2023  WT/ACC/TLS/2 7 
Draft Insolvency Law  WT/ACC/TLS/23  
Draft Insolvency Code  WT/ACC/TLS/2 6 
Draft Decree -Law to Regulate Functional Structure of SERVE  WT/ACC/TLS/2 6 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Legislation/Regulation  Legislation Notice  
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
Constitution of The Democratic Republic of Timor -Leste  WT/ACC/TLS/5  
Law No. 1/2002, Publication of Acts  WT/ACC/TLS/5  
Law No. 2/2002, Interpretation of Applicable Law  WT/ACC/TLS/5  
Law No. 10/2003, Interpretation of Section 1 of Law No. 2/2002 of 7  August 2002, 
and Sources of Law  WT/ACC/TLS/5  
Law No. 5/2004, Status of Members of Parliament  WT/ACC/TLS/5  
Criminal Procedu re Code - Decree -Law No.  13/2005  WT/ACC/TLS/5  
Civil Procedure Code - Decree -Law No.  1/2006  WT/ACC/TLS/7  
Resolution by the National Parliament No. 25/2008, Ratification of UNCAC  WT/ACC/TLS/17  
Decree -Law No. 32/2008, Administrative Procedures  WT/ACC/TLS/5  
Law No. 2/2009 of 6 May 2009 on Protection of Witnesses  WT/ACC/TLS/17  
Decree -Law No. 9/2009, PNTL - National Police of Timor -Leste  WT/ACC/TLS/5  
Penal Code - Decree -Law No.  19/2009  WT/ACC/TLS/5  
Law No. 11/2009, Territorial Administrative D ivision (Local Government)  WT/ACC/TLS/5  
Law No. 6/2009 on 1st Amendment, by Parliamentary Consideration, to the Penal 
Code  WT/ACC/TLS/5  
Civil Code - Law No. 10/2011 of 14  September 2011  WT/ACC/TLS/5  
Law No. 3/2004 of 14 April 2004, First amended by Law No. 2/2016 of 3 February 
2016 on Political Parties  WT/ACC/TLS/17  
Government Decree No. 1/2015, Public Finance Procedures and Rules for 
Execution of State Budget 2015  WT/ACC/TLS/9  
Rules of Procedure of the National Parliament No. 1/2016  WT/ACC/TLS/9  
Law No. 4/2016, Territorial Administrative Division (Local Government)  WT/ACC/TLS/7  
Law No. 6/2017, Bas es for Territorial Planning  WT/ACC/TLS/7  
Joint Ministerial Diploma No. 42/2017, Regulation on Muni cipality Administration 
and Authority in Public Works Domain  WT/ACC/TLS/7  
Joint Ministerial Diploma No. 43/2017, Regulation on Municipality Administration 
and Authority in Water and Sanitation  WT/ACC/TLS/7  
Government Resolution No. 51/2017, Rules of Pro cedure for the Council of 
Ministers  WT/ACC/TLS/7  
Decree -Law No. 14/2018, Organic Structure of the VIII Constitutional Government  WT/ACC/TLS/9  
Resolution No. 12/2019, Code of Conduct of Members of the Government  WT/ACC/TLS/17  
Decree -Law No. 27/2020  
of 19 June 2020, 2nd Amendment to Decree -Law No. 14/2018, Organic Structure 
of the VIII Constitutional Government  WT/ACC/TLS/9  
Law No. 7/2020, Preventing and Combatting Corruption  WT/ACC/TLS/15  
Annual Budget Law for 2021 (Law No. 14/2020 of 29 December 2020, as amended 
by Law No. 8/2021 of 3 May 2021)  WT/ACC/TLS/15  
Law No. 3/2021, Authorizing the Government to change the Civil Procedure Code  WT/ACC/TLS/15  
Law No. 6/2021, Legal Regime of Voluntary Arbitration and 1st Amendment to the 
Civil Proc edure Code  WT/ACC/TLS/15  
Resolution No. 8/2021, Timor -Leste's Accession to the 1958 New York Convention 
on the Recognition and Enforcement of Foreign Arbitral Awards  WT/ACC/TLS/15  
Decree -Law No. 16/2021, General Structure of the Public Administration  WT/ACC/TLS/2 7 
Law No. 23/2021, Local Governments and Administrative Decentralization  WT/ACC/TLS/21  
Law No. 25/2021, System of Courts  WT/ACC/TLS/21  
Law No. 12/2022, First Amendment to the Law No. 25/2021, System of Courts  WT/ACC/TLS/2 7 
Law No. 15/2022, State Budget for 2023  (Article 3)  WT/ACC/TLS/2 7 
Decree -Law No. 70/2022, Management of Industrial Parks  WT/ACC/TLS/2 7 
Decree -Law No. 83/2022, First Amendment to Decree -Law No. 34/2017  on 
Licensing of Economic Activities  WT/ACC/TLS/2 7 
Decree -Law No. 87/2022, First amendment to Decree -Law No. 14/2017  on 
Customs Code  WT/ACC/TLS/2 7 
Decree -Law No. 95/2022, Rules of Origin  WT/ACC/TLS/2 7 
Draft Government Decree on Establishment of the Permanent Secretariat on the 
Accession to the WTO  WT/ACC/TLS/2 3 
Draft Decree -Law on Legal Regime for Administrative Offences  WT/ACC/TLS/2 6 
POLICIES AFFECTING TRADE IN GOODS  
Executive Order No. 2002/12, on Trade in Goods Bearing National Symbols 
(UNTAET)  WT/ACC/TLS/5  
Decree -Law No. 19/2003, Regulation on Port Tariff  WT/ACC/TLS/5  
Decree -Law No. 21/2003, Quarantine and Sanitary Controls of Imported and 
Exported Goods  WT/ACC/TLS/5  
Decree -Law No. 6/2004, General Bases of the Legal Regime for Fisheries and 
Aquaculture Man agement and Regulation  WT/ACC/TLS/5  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 90 - 
 
  Legislation/Regulation  Legislation Notice  
Government Decree No. 5/2004, General Regulation on Fishing  WT/ACC/TLS/5  
Decree -Law No. 12/2004, Regulation of Pharmaceutical Activities  WT/ACC/TLS/5  
Ministerial Diploma No. 4/2004, Percentage of Insurance of Imported Goods  WT/ACC/TLS/17  
Ministerial Diploma No. 10/2004, Licensing fees for pharmaceutical activities  WT/ACC/TLS/17  
Ministerial Diploma No. 12/2004, Classification of Medicines  WT/ACC/TLS/17  
Decree -Law No. 4/2005, General Bases of the Legal Regime for Fisheries and 
Aquaculture Management and Regulation   WT/ACC/TLS/5  
Decree -Law No. 10/2005, Legal Regime for Procurement  WT/ACC/TLS/5  
Decree -Law No. 11/2005, Administrative Infractions of the Legal Regime for 
Procurement and the Legal Regime for  Public Contracts  WT/ACC/TLS/5  
Decree -Law No. 12/2005, Legal Regime for Public Contracts  WT/ACC/TLS/5  
Decree -Law No. 8/2006, Regulation on Customs Duties  WT/ACC/TLS/5  
Government Decree No. 1/2006, Rules and Procedures to Implement Quarantine 
and Sanitary Controls of Imported and Exported Goods  WT/ACC/TLS/5  
Decree -Law No. 14/2006, 1st Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Law No. 8/2008, Taxes and Duties Act  WT/ACC/TLS/5  
Decree -Law No. 24/2008, 2nd Amendment to the Procurem ent Legal Regime  WT/ACC/TLS/5  
Decree -Law No. 5/2009, Licensing for Sale of Drinking Water  WT/ACC/TLS/5  
Decree -Law No. 2/2009, Special Procurement Legal Regime for Autonomous 
Service for Drugs and Health Equipment (SAMES)  WT/ACC/TLS/5  
Decree -Law No. 23/2009, Food Safety and Business Administrative Offences  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2009, Procedure s for Issuance of Certificate of Origin for 
Coffee  WT/ACC/TLS/7  
Government Decree No. 8/2009, Regulation on Special Procuremen t for Priority 
Projects  WT/ACC/TLS/7  
Decree -Law No. 29/2009, Special Procurement for Priority Projects  WT/ACC/TLS/5  
Decree -Law No. 1/2010, 3rd Amendment to the Procurement Legal Regime  WT/ACC/TLS/5  
Decree -Law No. 2/2010, Special Procurement for Constru ction Work Up to US$ 
250,000  WT/ACC/TLS/5  
Decree -Law No. 3/2010, Organic of the Procurement Monitoring and Technical 
Commission  WT/ACC/TLS/5  
Decree -Law No. 14/2010, Temporary Procurement Measures  WT/ACC/TLS/5  
Decree -Law No. 11/2011, National Development Agency  WT/ACC/TLS/5  
Decree -Law No. 14/2011, National Procurement Commission  WT/ACC/TLS/5  
Decree -Law No. 15/2011, 4th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Decree -Law No. 30/2011, Conditions and Procedures to be Observed  in relation to 
the Import of Motor Vehicles  WT/ACC/TLS/17  
Decree -Law No. 38/2011, 5th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Government Resolution No. 9/2012, Settlement Agreement Between the State and 
Timor Telecom  WT/ACC/TLS/7  
Decree -Law No. 18/2011, Decentralized Development Programmes I and II  WT/ACC/TLS/5  
Decree -Law No. 24/2011, Licensing of Economic Activities  WT/ACC/TLS/5  
Decree -Law No. 28/2011, Food Industry and Marketing Regulation  WT/ACC/TLS/5  
Decree -Law No. 35/2012, Business Verification and Registration Services (SERVE)  WT/ACC/TLS/9  
Decree -Law No. 26/2012, Basic Law of the Environment  WT/ACC/TLS/5  
Decree -Law No. 36/2012, Control of Imports and Exports of Substances that 
Deplete the Ozone Layer  WT/ACC/TLS/1 7 
Decree -Law No. 11/2013, Procurement Legal Regime for the Integrated District 
Development Plan (PDID)  WT/ACC/TLS/5  
Decree -Law No. 5/2015, Creation of Free Trade Zone and Industrial Customs Free 
Zone in the Oecusse -Ambeno Region (ZEESM)  WT/ACC/TLS/9  
Decree -Law No. 10/2014, Regulation on Slaughterhouse Licensing  WT/ACC/TLS/9  
Decree -Law No. 13/2014, Regulation on Hygiene Requirement for Selling of Meat 
and Meat Products  WT/ACC/TLS/9  
Law No. 3/2014, Creation of the Oe -cusse -Ambeno Special Administrati ve Region, 
and the Oe -cusse Ambeno and Atauro (RAEOA) Social Market Economic Special 
Zone (ZEESM)  WT/ACC/TLS/5  
Decree -Law No. 28/2014, Procurement Special Regime for Special Administrative 
Region of Oecusse -Ambeno (ZEESM)  WT/ACC/TLS/5  
Government Resoluti on No. 37/2014, Special Investment Agreement with 
Heineken  WT/ACC/TLS/7  
Decree -Law No. 28/2015, Regulation on Port s Tariff (1st Amendment to Decree -
Law No. 19/2003)  WT/ACC/TLS/7  
Decree -Law No. 1/2016, 1st Amendment to Decree -Law No. 20/2008 of 19 June 
2008 WT/ACC/TLS/5  
Government Resolution No. 6/2016, National Trade Facilitation Commi ssion  WT/ACC/TLS/7  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 91 - 
 
  Legislation/Regulation  Legislation Notice  
Decree -Law No. 5/2016, National System of Protected Areas  WT/ACC/TLS/7  
Decree -Law No. 12/2016, Special Procurement Legal Regime for Autonomous 
Service for Drugs and Health Equipment (SAMES)  WT/ACC/TLS/9  
Decree -Law No. 15/2016, Procurement Legal Regime for the Integrated District 
Development Plan (PDID)  WT/ACC/TLS/5  
Decree -Law No. 26/2016, Establishment of the Authority for Inspection and 
Supervision of Economic, Food and Sanitary Activities  WT/ACC/TLS/5  
Decree -Law No. 35/2016, Creation of Installation Commission of the Authority for 
Inspection, Supervision of Economic, Food and Sanitary Activity  WT/ACC/TLS/9  
Government Res olution No. 42/2016, Adoption of the Rules of the Revised Arusha 
Declaration of the World Customs Organization  WT/ACC/TLS/7  
Government Resolution No. 41/2016, Approval of State Capital Contribution and 
Participation in TL Cement  WT/ACC/TLS/7  
Decree -Law No. 2/2017, Urban Solid Waste Management System  WT/ACC/TLS/7  
Decree -Law No. 7/2017, Business Registration and Verification Service (SERVE)  WT/ACC/TLS/5  
Decree -Law No. 9/2017, Organic Structure of the Customs Authority  WT/ACC/TLS/5  
Government  Resolution No. 12/2017, National Policy for Nutrition and Food 
Security  WT/ACC/TLS/7  
Decree -Law No. 13/2017, Organic Structure of the Tax Authority  WT/ACC/TLS/5  
Decree -Law No. 14/2017, Customs Code of Timor -Leste  WT/ACC/TLS/5  
Law No. 14/2017, on Legal Regime for Forestry  WT/ACC/TLS/9  
Decree -Law No. 16/2017, Business Registration (or Commercial Registration) 
Procedures  WT/ACC/TLS/5  
Government Resolution No. 43/2017, Review of Technical Documentation in the 
Procurement Process for Public Works  WT/ACC/TLS/9  
Decree -Law No. 23/2017, Credit Guarantee Scheme for Small and Medium -Size 
Enterprises  WT/ACC/TLS/5  
Government Resolution No. 24/2017, on Adoption of ASYCUDA World Computer 
System  as a Platform for the National Single Window  WT/ACC/TLS/7  
Decree-Law No. 28/2017, Vehicle Movement Control Regime at the Entry and Exit 
from the National Territory  WT/ACC/TLS/9  
Decree -Law No. 34/2017, Licensing of Economic Activities  WT/ACC/TLS/5  
Ministerial Circular No. 3/2017, Import of Narcotics or Psychotropic  Substances  WT/ACC/TLS/17  
Ministerial Circular No. 11/2017, Natural Medicines  WT/ACC/TLS/17  
Decree -Law No. 10/2018, Legal Statute of Quality Institute of Timor -Leste  WT/ACC/TLS/7  
Ministerial Diploma No. 34/2018, Tables of Fees for SERVE  WT/ACC/TLS/17  
Law No. 3/2019, 1st Amendment to Law No.  3/2014, Creation of the Oe -cusse -
Ambeno Special Administrative Region, and the Oe -cusse Ambeno and Atauro 
(RAEOA) Social Market Economic Special Zone (ZEESM)  WT/ACC/TLS/7  
Law No. 5/2019, 1st Amendment to Decree -Law No. 8/2008, Taxes and Duties Act  WT/ACC/TLS/7  
Decree -Law No. 27/2019, 2nd Amendment to Decree -Law No. 20/2008 of 19 June 
2008, Creation of the National Petroleum and Minerals Authority  WT/ACC/TLS/7  
Decree -Law No. 6/2020, Legal Fra mework for the Protection and Conservation of 
Biodiversity  WT/ACC/TLS/18  
Decree -Law No. 30/2019, 6th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/7  
Decree -Law No. 2/2020, Establishment of the Structure of the Customs Authority  WT/ACC/TLS/21  
Decree -Law No. 7/2020, Import, Transport, Storage and Explosive Products for Civil 
Construction, Oil and Mineral Activities  WT/ACC/TLS/17  
Government Resolution No. 31/2020, Establishment of Inter -ministerial Commission 
for Tax Reform and P ublic Finance Management and the Inter -ministerial Sub -
committee for Reform of State Heritage Management  WT/ACC/TLS/15  
Decree -Law No. 5/2021, 7th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/19  
Draft Law on Pesticides  WT/ACC/TLS/15  
Draft D ecree-Law on Quarantine (Animal Health)  WT/ACC/TLS/5  
WT/ACC/TLS/9  
Draft Decree -Law on Quarantine (Plant Health)  WT/ACC/TLS/5  
WT/ACC/TLS/9  
Draft Import Requirements for Animals and Animal Products, and Plants and Plant 
Products (Quarantine Requirements)  WT/ACC/TLS/15  
Draft Export Promotion Law  WT/ACC/TLS/15  
Decree -Law No. 15/2021, First Amendment to Decree -Law No. 10/2018, of 9 April, On 
the Statute of the Institute for the Quality of Timor -Leste, I.P.  WT/ACC/TLS/ 23 
Decree -Law No. 22/2022 , Legal Regime for Procurement, Public Contracts and 
Respective Infractions  WT/ACC/TLS/ 23 
Decree -Law No. 39/2022, First Amendment to Decree -Law No. 5/2011, on 
Environmental Licensing  WT/ACC/TLS/ 23 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Legislation/Regulation  Legislation Notice  
Decree -Law No. 41/2022, Establishment of the National Env ironmental Licensing 
Authority, I.P., and Approval of its Statutes  WT/ACC/TLS/ 23 
Decree -Law No. 42/2022, Establishment of the Designated National, Authority for 
Combating Climate Change, I.P., and Approv al of its statutes  WT/ACC/TLS/ 23 
Decree -Law No. 43/2022, Mining Company of Timor -Leste WT/ACC/TLS/ 23 
Decree -Law No. 44/2022, Legal F ramework for Industrial Parks  WT/ACC/TLS/ 23 
Draft Decree -Law on Economic Activities Licensing (revision)  WT/ACC/TLS/ 23 
Draft Industrial Licencing Law  WT/ACC/TLS/ 23 
Draft Industrial Policy  WT/ACC/TLS/ 23 
Draft Government Resolution on the establishment of the National Trade Facilitation 
Committee (revision)  WT/ACC/TLS/ 23 
Draft Decree -Law on Rules of Origin  WT/ACC/TLS/ 23 
Draft Decree -Law on Import Licensing  WT/ACC/TLS/ 26 
Draft Law on Health, Safety and Hygiene at Work  WT/ACC/TLS/ 26 
Draft Export Promotion Law  WT/ACC/TLS/ 26 
Draft Decree -Law on Regulation on Business Registration Procedure (Amendment to 
Decree -Law No. 16/2017)  WT/ACC/TLS/ 27 
Draft Decree -Law on Industrial Licensing  WT/ACC/TLS/ 27 
Draft Decree -Law on Regulation for Organisation of S hip Inspection Services  WT/ACC/TLS/ 27 
Draft Policy on Trade Remedies  WT/ACC/TLS/ 27 
TRADE -RELATED INTELLECTUAL PROPERTY REGIME  
Indonesian Civil Code (Title XX Intellectual Property)  WT/ACC/TLS/5  
Parliament Resolution No. 16/2017, Ratification of the International Convention 
Establishing the WIPO  WT/ACC/TLS/5  
Copyright Law No. 14/2022  WT/ACC/TLS/ 27 
Draft Industrial Property Code  WT/ACC/TLS/ 23 
WT/ACC/TLS/ 27 
Draft Copyright Law  WT/ACC/TLS/ 23 
Draft Decree -Law on the Establishment of the Industrial Property (IP) Institute  WT/ACC/TLS/ 23 
POLICIES AFFECTING TRADE IN SERVICES  
UNTAET Regulation No. 8/2000, Bank Licensing and Supervision  WT/ACC/TLS/5  
Decree -Law No. 2/2003, Basic Law on the Road Transport System  WT/ACC/TLS /5 
Decree -Law No. 11/2003, Regulation of the Telecommunication Sector  WT/ACC/TLS/5  
Decree -Law No. 13/2003, Bases for the National Electricity System  WT/ACC/TLS/9  
Decree -Law No. 18/2003, Road Transport Contract  WT/ACC/TLS/5  
Decree -Law No. 4/2004, Water Supply for Public Consumption  WT/ACC/TLS/9  
Decree -Law No. 17/2004, Postal Services  WT/ACC/TLS/5  
Decree -Law No. 18/2004, Regulation on Private Health Services  WT/ACC/TLS/5  
Decree -Law No. 5/2006, Certification of Air Transport Operators  WT/ACC/TLS/5  
Law No. 6/2005, Regime for the Licensing, Oversight and Regulation of Insurance 
Companies and Insurance Intermediaries  WT/ACC/TLS/5  
Public Instruction No. 1/2007, Licensing of General Insurance Companies  WT/ACC/TLS/5  
Public Instruction No. 2/2007, Licensing of Insurance Intermediaries  WT/ACC/TLS/5  
Government Decree No. 9/2008, Regulation of Mobile Telecommunication Network 
Services  WT/ACC/TLS/7  
Decree -Law No. 6/2009, Regulation on Recreational and Social Gambling  WT/ACC/TLS/5  
Decree -Law No. 7/2009, Regulation on Restaurants and Similar Establishments  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2009, Regulation on Lottery Franchise  WT/ACC/TLS/5  
Decree -Law No. 21/2009, Funeral Transport Service  WT/ACC/TLS/5  
Public Ins truction No. 6/2010, Licensing and Supervision of Other Deposit Taking 
Institutions  WT/ACC/TLS/5  
Decree -Law No. 26/2010, Registration of Sole Entrepreneurs in the Construction 
Sector  WT/ACC/TLS/5  
Decree -Law No. 27/2010, Rules for the Certification and Registration of 
Construction Consultancy Companies  WT/ACC/TLS/5  
Decree -Law No. 5/2011, Environment al Licensing  WT/ACC/TLS/5  
Decree -Law No. 3/2011, Transformation of Micro -Finance Institute into Public 
Company (National Commercial Bank of Timor -Leste (BNCTL))  WT/ACC/TLS/5  
Decree -Law No. 51/2011, Legal Regime for Advertising Activities  WT/ACC/TLS/9  
Decree -Law No. 12/2012, Agency Agreement  WT/ACC/TLS/5  
Decree -Law No. 15/2012, Regulation on Telecommunication Sector  WT/ACC/TLS/5  
Public Instruction No. 1/2013, Licensing and Supervision of Money Transfer 
Operators  WT/ACC/TLS/5  
Ministerial Diploma No. 2/2014, Regulation on Mines and Quarries Activities  WT/ACC/TLS/7  
Law No. 5/2014, Media Law  WT/ACC/TLS/9  
Decree -Law No. 32/2014, Legal Regime for Private Security  WT/ACC/TLS/9  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Legislation/Regulation  Legislation Notice  
Decree -Law No. 6/2016, Legal Regime for Licensing, Operation and Control of th e 
Activity of Games and Entertainment, Gaming Machines and Traditional Games  WT/ACC/TLS/9  
Government Resolution No. 33/2015, Lease of Land for Hotel Construction (Pelican 
Paradise)  WT/ACC/TLS/7  
Decree -Law No. 33/2016, Regulation on Licensing of Electrici ty Service Provider 
and Tariffs  WT/ACC/TLS/7  
Decree -Law No. 19/2016, Legal Regime for the Licensing and Operation of Travel 
and Tourism Agencies  WT/ACC/TLS/5  
Government Resolution No. 3 6/2017, Amendment to Government Resolution No. 
33/2015, Lease of Land for Hotel Construction (Pelican Paradise)  WT/ACC/TLS/7  
Decree -Law No. 29/2017, National Information and Communication Technologies 
Agency  WT/ACC/TLS/9  
Decree -Law No. 29/2020, Creation of Timor -Leste Electr icity (EDTL, E.P.)  WT/ACC/TLS/15  
Decree Law No. 40/2020, Creation of the National Authority for the Energy Sector 
(ANE, I.P.)  WT/ACC/TLS/15  
Law No. 12/2021, Mining Code  WT/ACC/TLS/ 23 
Decree -Law No. 35/2021, Territorial Planning  WT/ACC/TLS/ 27 
Law No. 4/ 2022, Legal Regime of Public Professional Associations  WT/ACC/TLS/ 23 
Draft Decree -Law on E -Commerce  WT/ACC/TLS/ 23 
Draft Decree -Law on National Registry of Ships and Vessels  WT/ACC/TLS/ 27 
Draft Bar Association Law  WT/ACC/TLS/ 27 
TRADE AGREEMENTS  
Government Resolution No. 2/2004, Investment Protection Agreement Between 
Timor -Leste and Portugal  WT/ACC/TLS/7  
Government Resolution No. 8/2011, Investment Protection Agreement Between 
Timor -Leste and Germany  WT/ACC/TLS/7  
Government Resolution No. 18/2014, Economic Cooperation Between Timor -Leste 
and China  WT/ACC/TLS/7  
Government Resolution No. 45/2016, Approval of Trade Cooperation Between 
Timor -Leste and Kuwait  WT/ACC/TLS/7  
Parliament Resolution No. 1 4/2016, on Ratifica tion of Convention on the 
Settlement of Investment Disputes Between States and Nationals of Other States  WT/ACC/TLS/7  
 
 
 
 
    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 94 - ANNEX 2(A) 
Gross Domestic Product , 2013 -2020 
(In millions, US Dollars)  
  2013  2014  2015  2016  2017  2018  2019  2020  
Agriculture, forestry and fishing  300.2  296.5  283.4  279.6  271.3  279.2  286.1  293.6  
Mining and quarrying  1.6 1.6 1.6 1.6 1.7 1.5 342.6  282.0  
Extraction of crude petroleum and natural gas  0.0 0.0 0.0 0.0 0.0 0.0 341.3  281.5  
Other mining and quarrying  1.6 1.6 1.6 1.6 1.7 1.5 1.3 0.5 
Manufacturing and other industry*  11.2 12.1 16.4 19.1 25.9 26.3 37.9 33.4 
Of which: manufacturing  10.3 11.3 15.5 18.1 24.8 25.5 37.2 33.0 
Construction  255.4  225.2  274.0  293.7  203.5  215.4  237.1  167.8  
Wholesale and retail trade, transportation and storage, accommodation and food services  276.1  283.9  290.9  309.8  288.5  260.7  287.8  247.0  
Information and communication  41.0 21.7 36.5 41.4 40.0 41.5 55.1 60.9 
Financial and insurance activities  11.4 12.5 11.9 14.5 23.6 21.6 31.8 25.5 
Real estate activities  155.1  177.7  180.7  187.0  195.7  189.6  193.0  191.3  
Professional, scientific, technical, administration and support services  42.2 49.8 50.2 48.6 51.3 41.2 38.3 17.5 
Public admin., defence, education, human health and social work activities  310.0  364.0  385.6  405.0  442.4  471.3  470.5  472.5  
Other service activities  63.0 59.6 57.6 64.4 63.2 50.6 49.8 35.2 
Equals: Value Added , Gross, at factor cost  1467.1  1504.6  1588.8  1664.7  1607.1  1599.0  2030.0  1826.8  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 341.3  281.5  
Non-oil sector  1467.1  1504.6  1588.8  1664.7  1607.1  1599.0  1688.7  1545.3  
Plus: Taxes less Subsidies on products  35.2 35.6 9.6 7.5 4.1 -3.6 14.7 45.3 
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 2.4 25.2 
Non-oil sector  35.2 35.6 9.6 7.5 4.1 -3.6 12.2 20.1 
Equals: G ross Domestic  Product  (Production)  1502.3  1540.2  1598.4  1672.1  1611.3  1595.4  2044.7  1872.1  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 343.7  306.7  
Non-oil sector  1502.3  1540.2  1598.4  1672.1  1611.3  1595.4  1701.0  1565.4  
Statistical Discrepancy  -19.0 9.2 -4.0 -24.1 -30.8 -31.6 3.3 30.1 
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Non-oil sector  -19.0 9.2 -4.0 -24.1 -30.8 -31.6 3.3 30.1 
GDP 1483.3  1549.3  1594.4  1648.1  1580.4  1563.8  2047.9  1902.2  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 343.7  306.7  
Non Oil Sector  1483.3  1549.3  1594.4  1648.1  1580.4  1563.8  1704.2  1595.5  
* Electricity and gas ; plus water supply; sewerage, waste management and remediation activities  
Source:  National Account, General Directorate of Statistics, Ministry of Finance . 
 
    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 95 - ANNEX 2(B) 
Balance of Payments, 2013 -2019  
 (In thousands, US Dollars ) 
  2013  2014  2015  2016  2017  2018  2019  2020  
Current Account Exclude other primary 
income  658,458  723,125  781,145  768,356  705,226  701,274  623,306  - 
I. Current Account  2,391,665  1,093,840  203,619  544,484  283,529  191,193  132,949  84.918  
A. Goods and Services  1,050,674  1,196,707  1,217,997  1,114,985  958,108  937,898  923,029  316.731  
1. Goods, fob  619,722  602,962  635,394  546,462  614,819  588,568  566,498  135.987  
2. Services  430,952  593,745  582,603  568,523  343,288  349,330  356,530  452.717  
B. Primary Income   3,328,249  2,134,183  1,296,807  544,079  735,327  842,632  1,126,451  296.627  
1. Compensation of employees  3,946  1,316  927  477  1,821  2,685  2,144  4.265  
2. Investment income  274,180  315,901  311,116  319,730  311,809  329,866  372,340  292.363  
3. Other primary income (income from 
JPDA), credit  3,050,123  1,816,965  984,764  223,872  421,697  510,081  756,255  - 
C. Secondary Income  114,090  156,364  124,809  26,422  60,748  95,927  70,474  64.814  
II. Capital account, Exclude Reserves  20,130  13,745  29,006  47,400  34,030  51,554  25,825  12.433  
III. Financial account  2,564,102  1,378,097  32,214  485,480  498,426  249,367  20,982  271.944  
IV. Grand Total (I+II+III)  152,308  270,513  264,839  11,604  248,927  109,728  137,791  199.459  
V. Errors and omissions  44,245  105,764  45,064  145,194)  14,556  19,747  155,406  199.216  
VI. BOP Position (IV+V)  196,553  376,277  219,775  156,797  263,483  129,474  17,615  243 
VII. Change in Reserve Assets  196,553  376,277  219,775  156,797  263,483  129,474  17,615  243 
a) Reserve Assets Position  686,994  311,467  437,867  280,952  544,435  673,909  656,295  656.537  
b) Change in Reserve Assets+Net  Portfolio 
Investment Assets Transaction from 
Sovereign wealth Fund (Petroleum Fund)  2,586,911  1,384,373  68,985  860,858  76,905  66,118  -251,625  489.469  
c) Sovereign Wealth Fund (Petroleum 
Fund) Assets Position Value as of end -
period  14,952,099  16,538,618  16,217,573  15,844,327  16,799,313  15,822,994  17,691,816  19.990  
VIII. Errors and omissions  6.8 16.7 6.7 24.8 2.25  3.10  25.1 13.9 
Source:  Central Bank of Timor -Leste.  
 WT/ACC/SPEC/TLS/5/Rev.1  
 
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ANNEX 2(C) 
Trade in Goods and Services , 2013 -2020 
In million s, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  2020  
Total exports of 
goods and services  77.9 66.2 48.5 51.8 38.2 45.6 39.6 22.4 
Total imports of 
goods and services  1033.5  1131.5  906.9  937.6  871.2  943 872.10  742.7  
 Total Trade  1,111.40  1,197.70  955.40  989.40  909.40  988.60  911.70  765.10  
Source:  SNA, General Directorate of Statistics, Ministry of Finance . 
 
Exports and Imports of Goods and Services, 2013 -2020 
In millions, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  2020  
Exports                 
 Goods  27.0 15.8 12.0 25.4 11.0 15.6 16.0 9.4 
 Services  60.3 51.8 36.5 27.2 21 21.8 14.9 5.8 
Imports                 
 Goods  395.5  432.3  484.7  534.0  542.2  473.3  504.0  495.6  
 Services  482.7  546.9  422.2  446.6  352.3  447.2  356.9  292.4  
Source:  SNA, General Directorate of Statistics, Ministry of Finance.  
 
Composition of Exports and Imports of Goods and Services, 2013 -2020 
In millions, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  2020  
Exports          
Goods  27.0 15.8 12.0 25.4 11.0 15.6 489.1  1633.8  
01 Animal & Animal Products  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
02 Crops & Vegetables  26.4 15.2 10.7 24.0 9.7 14.0 14.1 8.3 
03 Edible fats & oils  0.1 0.1 0.3 0.1 0.1 0.2 0.1 0.1 
04 Foodstuffs  0.0 0.0 0.0 0.0 0.0 0.5 0.3 0.0 
05 Mineral products (Petroleum 
Oil and Gases)  0.4 0.5 0.9 1.0 0.9 0.7 473.8  1624.9  
06 Chemicals & Allied  0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 
07 Plastics / Rubbers  0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
08 Wood & Wood Products  0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.1 
09 Base metals  0.0 0.0 0.0 0.0 0.3 0.1 0.2 0.3 
10 Vehicles & transport eqpt.  0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 
Services  60.3 51.8 36.5 27.2 21.0 21.8 14.9 5.8 
a. Transport  0.6 0.8 1.5 1.8 1.8 2.2 3.4 0.7 
b. Travel  36.7 25.2 28.1 20.7 15.4 14.1 8.6 3.8 
c. Insurance and pension 
services  1.0 0.5 0.0 0.0 0.1 0.6 0.5 -0.2 
d. Telecommunications, 
computer and information 
services  18.2 24.4 5.1 2.3 1.9 1.2 0.9 1.0 
e. Government goods and 
services  3.7 0.9 1.8 2.4 1.9 3.6 1.5 0.4 
Imports          
Goods  395.5  432.3  484.7  534.0 542.2 473.3 553.4  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 49.3 228.0  
Non-oil sector  395.5 432.3 484.7  534.0 542.2 473.3 504.0 495.6  
Merchandise imports, f.o.b.  394.0 430.4 482.8  531.4 539.3 470.3 501.7 493.8  
Merchandise imports, adjusted, 
c.i.f. 438.1 475.6 536.8  591.1 599.7 522.9 558.0 549.1  
Merchandise imports in trade 
statistics, c.i.f.  398.3 432.4 488.0  537.4 545.1 475.4 507.3 508.4  
01 Animal & Animal Products  12.2 15.8 16.7 21.8 36.9 33.8 31.0 28.0 
02 Crops & Vegetables  21.8 34.1 33.1 44.8 47.4 48.6 49.7 42.0 WT/ACC/SPEC/TLS/5/Rev.1  
 
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    2013  2014  2015  2016  2017  2018  2019  2020  
03 Edible fats & oils  3.0 3.3 4.5 4.5 9.8 10.8 11.8 10.6 
04 Foodstuffs  43.8 43.0 50.1 69.9 66.7 63.1 60.7 66.2 
05 Mineral products   82.2 93.8 134.9  133.3  137.9  120.1  139.7  148.5  
06 Chemicals & Allied  10.3 14.0 11.1 16.1 17.2 19.0 19.7 16.1 
07 Plastics / Rubbers  5.2 7.4 10.6 12.3 11.7 10.9 11.3 12.4 
08 Raw Hides & Skins, Leather  0.1 0.2 0.3 0.4 0.4 0.5 1.7 3.3 
09 Wood & Wood Products  1.8 2.1 3.7 3.3 2.8 2.6 3.1 3.2 
10 Paper and paperboard  4.4 6.4 4.4 5.5 5.4 5.3 6.9 4.6 
11 Textiles  28.4 21.6 16.2 10.3 12.8 9.3 8.7 11.7 
12 Footwear / Headgear  2.1 2.0 3.6 4.2 4.1 4.3 7.4 8.4 
13 Stone / Glass  3.9 4.2 4.2 6.3 5.6 4.0 5.2 4.9 
14 Precious stones & metals  0.3 15.7 0.4 0.4 0.0 0.0 0.0 0.1 
15 Base metals  23.5 21.5 28.6 37.6 28.2 20.5 22.7 23.7 
16 Machinery / Electrical  78.7 57.7 77.3 79.2 71.4 48.6 49.9 54.7 
17 Vehicles & transport eqpt.  62.0 72.7 72.1 71.7 74.0 60.7 64.3 52.7 
18 Apparatus & instruments  3.0 3.0 3.0 4.6 3.7 3.7 3.3 5.0 
19 Arms and ammunition  0.9 0.7 0.5 0.4 0.0 0.2 0.2 0.3 
20 Miscellaneous  11.4 14.1 12.7 10.9 9.8 9.2 8.9 12.1 
Adjustment for unrecorded and 
underreported imports  39.9 43.3 48.8 53.8 54.6 47.5 50.6 40.7 
Rate of adjustment  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Services  482.7 546.9 422.2  446.6 352.3 447.2 563.4 1142.8  
a. Maintenance and repair 
services n.i.e.  0.0 0.0 0.0 0.0 0.0 0.0 110.1 509.5  
b. Transport  41.6 43.4 57.4 63.8 61.1 51.2 62.5 75.2 
c. Travel  41.6 47.7 60.6 67.2 55.6 42.3 45.8 15.1 
d. Construction  73.0 200.3 90.2 92.3 24.9 190.7 174.5 393.7  
e. Insurance and pension 
services  11.6 11.8 13.9 15.4 15.5 13.6 14.8 15.5 
f. Financial services  -4.0 -10.3 -1.8 8.1 7.5 8.0 8.4 7.5 
g. Charges for the use of 
intellectual property n.i.e.  0.0 0.1 0.1 1.2 0.4 0.0 0.6 0.0 
h. Telecommunications, 
computer and information 
services  23.2 13.0 10.1 7.4 6.2 3.8 5.7 3.0 
i. Other business services  108.1  101.5  70.1 75.9 68.4 31.2 43.5 28.1 
j. Government goods and 
services n.i.e.  187.6  139.5  121.5  115.3  112.7  106.3  97.4 98.2 
Source:  National Account, General Directorate of Statistics, Ministry of Finance . 
 
   WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 3 
Doing Business Indicators  
For ease of Doing Business, Timor -Leste ranked 181st out of 190 countries covered by the World 
Bank's Doing Business indicators for 2020 :  
Indicator  Rank in 2020  
Starting a business  68 
Trading Across Borders  107 
Access to electricity  126 
Ease of paying taxes  136 
Registering property  187 
Resolving insolvency  168 
Contract enforcement  190 
The following developments have been registered with respect to specific Doing Business indicators:  
• Enforcing Contracts : Aiming at improving this indicator, in 2019, the Government sent to the 
National Parliament and in 2021, the National Parliament approved a  package of three 
legislative initiatives which have the potential for improving contract enforcement:  
• Resolution authorizing the adoption by Timor -Leste of the 1958 New York Convention on 
the Recognition and Enforcement of Foreign Arbitral Awards (approv ed by Resolution 
No. 8/2021 of 17 March 2021);  
• Law on National and International Arbitration (enacted by Law No. 6/2021 o f 
31 March  2021 on the Legal Regime of Voluntary Arbitration and the  First Amendment to 
the Civil Procedure Code); and  
• Law that simplifies the  procedures of civil and commercial cases to speed up their 
management (approved by Law No. 3/2021 of 2 March 2021 that authorizes 
the Government to change the Civil Procedure Code);  
• Getting Electricity : Real progress from 2015 to 2019 was m ade with regard to this indicator, 
as shown by World Bank documents. This indicator has the potential to further improve as the 
institutional reform projects for the sector were approved. Among others, a new regulating 
body for the energy sector is current ly being installed (please refer to Decree -Laws Nos. 
29/2020 of 22 July 2020 and 40/2020 of  25 September  2020);  
• Getting Credit : The Government, as sole shareholder to the National Commercial Bank of 
Timor -Leste (hereinafter referred to as BNCTL), has recen tly approved the state general 
budget for 2021 to further capitalize the bank with a total amount of US$  40 million with an 
aim to improve mechanisms and access to credit with lower interest rates. Such credit aims 
to improve access for the private sector,  especially from micro, small and medium -sized 
enterprises.  
In addition, to facilitate the private sector 's access to credit, the BNCTL signed an  agreement with 
the Public Institute for Business Development Support (hereinafter referred to as IADE) to assi st 
young entrepreneurs to quickly obtain credit to start their business.  
Law No. 7/2020 of 28 August 2020 on Preventing and Combatting Corruption, aligned with the UN 
Convention against Corruption (UNCAC), was approved by the Parliament, creating the expec tation 
of a more effective fight against corruption.  
An integrated Project on Unique Identifier of Timorese citizens and residents was launched 
by Government Resolution No. 9/2020 of 19 March 2020, aiming at bettering the overall provision 
of services and creating the basis for an electronic government. This has the potential to improve 
transparency and reduce red tape for businesses.  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 4 
Legislative F ramework for Combatting Corruption  
Title VI of the Penal Code on the Crimes Practiced in the Performance of Public Functions, in 
Article  292 on Passive Corruption for Illicit Action , provide s that, an employee who, by himself, or 
through a  personal intermediary, with his consent or ratification, requests or accepts, for himself or 
for a third party, without being due, a patrimonial or non -patrimonial advantage, or his promise, to 
any person of an act or omission contrary to the duties of the position, even if prior to that request 
or acceptance, is punishable with a prison sentence of 3 t o 15 years. If an agent, before the practice 
of the fact, voluntarily repudiates the offer or promise that he accepted, or restores the advantage, 
or, in the  case of a fungible thing, its value , is exempt from penalty.  The penalty is especially 
mitigated i f the agent concretely assists in the collection of the decisive evidence for the identification 
or the  capture of other responsible persons.  
Articles 5 and 19 of National Parliament Resolution No. 12/2019 of 13 March 2009 on the Code of 
Conduct of Member s of the Government on Preventing and Combating Corruption  provide that 
Government members should make a commitment to prevent and combat corruption, especially 
private corruption, extortion or bribery, and are prohibited from:  (a) offer ing, accept ing or 
facilitat ing the payment of a bribe;  (b) offer ing or authoriz ing, directly or indirectly, an undue 
advantage for any person or public agent that involves direct personal gain or that of intermediary 
third parties.  Members of the Government must communi cate to the Public Prosecutor the acts that 
may constitute attempts at corruption. They may not receive any offers in cash and may only receive 
offers of symbolic value that do not exceed the value of US$ 250. The value of the offers is recorded 
in a specific heading of all offers from the same person, whether natural or legal, during the course 
of a calendar year. At the same time, members of the Government may receive offers made between 
States, the refusal of which can be interpreted as a breach of inter institutional respect.  
On the institutional level, several independent supervisory bodies have been created, particularly:  
• The Anti -Corruption Commission (hereinafter referred to as CAC) , which  has played an active 
role in monitoring and holding public officials accountable and obtaining important results in 
terms of investigations. In addition to the CAC, there is the Ombudsman for Human Rights 
and Justice (PDHJ), with a mandate in the areas of  human rights and good governance. Its 
functions include receiving and investigating complaints from the citizens and the public 
against the public administration. The  PDHJ is also required to refer complaints that potentially 
involve criminal charges to t he CAC or to the Office of the General Prosecutor. The PDHJ and 
the CAC also play a broader role, which includes raising awareness on corruption issues and 
providing recommendations to the Government on good governance practices.  
• The General Inspection of State (IGE as the control and inspection body of the Public 
Administration ), whose mission is to control the financial management and resource use in 
the Public Administration services.  
• An independent Chamber of Accounts of the Administrative, Fiscal and A ccounting High Court , 
which was established in 2012 with a mandate to monitor the lawfulness of public expenditure 
and to audit state accounts.  
• The Prosecutor General/Public Prosecutor's office , which  is mandated to investigate and 
prosecute  criminal offe nces, including corruption -related crimes, assisted by the body of 
criminal police, working in the  field of criminal investigation (such as the Criminal Investigation 
Police Unit and the Scientific, Investigation and Criminal Police Unit (PCIC)).  
Thus, Timor -Leste has built a system to prevent and combat corruption efficiently, at all levels. A t 
the same time,  civil societ y contributes and exercise s a sharpen ed scrutiny over eventual corruption 
cases in general . 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 5 
Summary of FDI Regulations in T imor -Leste  
Laws and 
Regulations  Sector 
Restrictions  Restriction on Land 
Ownership  Performance 
Requirements  Investment Incentives  
Private 
Investment 
Law (PIL) 
No. 15/2017  
Government 
Decree No. 
2/2018, 
Regulation 
and 
procedure for 
private 
investment  
Other 
relevant laws 
– e.g. 
Company 
Act, Mining 
Code, etc . Restricted 
sector s: 
Criminal 
activities; 
activities 
related to 
environmental 
protection 
areas; 
activities 
related to 
offensive of 
traditional 
customs; arms 
and 
ammu nition 
distribution; 
postal & 
courier 
services; 
funeral service 
activities  
Other 
sectors :  
Refer to 
Negative List  State or private 
land: 
Lease right between 5 
and 50 years. 
Renewable up to 
maximum 150 years 
(Government Decree 
Law No.19/2004 
"Legal Regime for 
Leasing of State 
Properties and 
Assets ") 
State or private 
land: 
Lease up to maximum 
of 50 years, 
renewable for period 
of 25 up to 100 years 
(PIL, Article 25 ) – 
applicable to private 
investments issued 
with Declaration of 
Benefit (DoB) or 
Special Investment 
Agreement (SIA)  Job creation to 
local; knowledge 
transfer (training) 
to local; technology 
transfer ; 
Local content 
requirement s (only 
for mining 
activities) ; 
No export 
performance 
requirement s. Productive sectors :  
Agriculture, fisheries, 
tourism, processing 
industry  
Declarations of Benefits 
(DoB) and Special 
Investment Agreement 
(SIA)  
Tax and non -tax 
incentives : 
Minimum values for 
investment or 
reinvestment:  
- US $50,000 for a 
national investor  
- US $500,000 for a 
foreign investor  
- US $250,000 for a joint 
venture  
Support to investors : 
- Granting 
authorizations, visas, 
permits & registrations  
- Facilitation services  
 
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX  6 
State -owned enterprises  
No. Name  Sector  Description / Regulations  
1. Radio and Television of 
Timor -Leste ( "RTTL, 
EP") Radio and Television  Radio and Television of Timor -Leste , E.P. (RTTL, 
Tetum) is a national radio and television 
broadcaster in Timor -Leste .  
2. Timor Gas and 
Petroleum ("Timor 
Gap, EP")  Oil and Gas  Private and public companies can compete to 
acquire petroleum contract s. In case a petroleum 
contract is granted to a private company, the 
State has the right to participate in the contact 
through its SOE (normally in the form of a joint 
venture) with a participating interest of up to 
20%.  
3. National Aviation 
Agency of Timor -Leste 
("ANATL, EP")  Aviation  National aviation agency in charge of exploring 
and developing airports and air navigation infra -
structure. It is bestowed with financial 
administrative autonomy and its own patrimony.  
4. Electricity of Timor -
Leste ("EDTL, EP")  Electricity and Energy  The objective of the EDTL, EP is to create a set of 
restructuring measures in reforming the electricity 
sector , aimed at expanding the supply of 
electricity and modernizing the National Electricity 
System. This includes implementing a 
management system with the goal of improving 
the public service provided by the EDTL  and 
raising standards and quality of power supp ly and 
its reliability at affordable prices, considering the 
feasibility and sustainability of its operation.  
5. Water of Timor -Leste 
("BTL, EP")  Water and Sanitation  Created to promote greater efficiency and 
sustainability for the implementation of the 
Government's strategy in providing water and 
sanitation services to the public. The company 's 
mission is to assist the Government in the 
implementation of national policies for water and 
sanitation trough the integrated and sustainable 
management of water a nd sanitation related 
services . 
6.  Mining  Company of  
Timor -Leste  
("Companhia Mineira 
de Timor -Leste, S.A ") Mining  This is a newly established company . The 
investment portfolio will be expanded as the 
investment grow s. The general policy of the 
Government is to invest in the exploration and 
exploitation of the mineral  resources  as an 
alternative revenue resource to the State, while at 
the same time creating a strong service through 
other mineral support services which will lead to 
cost effectiven ess and increas ed profitability of the 
company.  
7.  The Company for the 
Management of 
Industrial Parks 
(GESPIN, S.A., 
established in 
September 2022)  Industrial Park s GESPIN, S.A. ensures the exercise of 
competences, namely of an economic, financial, 
patrimonial and staff management nature, 
necessary for the regular functioning of the 
industrial parks assigned to it, as well as all 
activities that are complementary, subsidiary or 
accessory to the continuation of its activity.  
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX  7 
Continuing E ffect of Laws that had been in f orce before Independence  
Article  165 of t he Constitution of Timor -Leste (in force since 20 May 2002) provides that laws and 
regulations  which  had been in force in Timor -Leste before its independence from Indonesia shall 
continue to be applicable to all matters except to the extent that they are inconsistent with 
the Constitution or the principles contained therein.  
Article  1 of Law No. 2/2002 " On Interpretation of Applicable Law" of 19 May 2002  provides that 
legislation applicable in Timor -Leste on 19 May 2002 shall remain in force mutatis mutandis  for 
everything that is not contrary to the Constitution and principles enshrined therein.  
It is possible that laws (Regulations, Directives, Executive Orders, and Notifications) enacted by 
the United Nations Transitional Administration in East Timor (UNTAET) between  October 1999 and 
May 2002 may still be in force. In most cases, UNTAET Regulations ha ve been repealed by 
subsequent  Parliamentary Laws or Decree -Laws. Where a UNTAET Regulation has not been expressly 
repealed, but it is inconsistent with a subsequent Parliamentary Law or Decree -Law, 
the Parliamentary Law or Decree -Law prevails over the UNT AET Regulation. This rule would also 
apply to UNTAET legislation that contravenes the Constitution.  
The first UNTAET Regulation, Regulation No. 1999/1 of 27 November 1999 on the Authority  of 
the Transitional  Administration in East Timor provides in Article  3.1 that, until replaced by UNTAET 
regulations or subsequent legislation enacted by democratically established institutions of East 
Timor, the laws applicable in Timor -Leste prior to 25 October 1999 shall apply as long as they do 
not conflict with the rul es set forth in Article 2 nor with the fulfillment of the mandate conferred to 
UNTAET under Resolution No. 1272 (1999) of the Security Council of the UN or with this or other 
regulations and directives enacted by the Transitional Administrator.  
This means that it is possible that an Indonesian Law in force in Timor -Leste on 25 October 1999 
still applies, if it has not been replaced by an UNTAET Regulation between 25 October 1999 and 
19 May 2002, or by Timor -Leste 's legal statutes. Where an Indonesian Law ha s not been repealed 
but it is inconsistent with a subsequent Parliamentary Law or Decree -Law, then the Parliamentary 
Law or Decree -Law prevails to the extent of any inconsistency with an Indonesian Law.  
The continuing application of Indonesian or UNTAET la ws was confirmed by Law No. 10/2003 of 
20 November 2003 "On the Interpretation of Article 1 of Law No. 2/2002 of 7 August 2002, and 
Sources of Law",  which provides in Article 2 that: (I) Legislation is the only immediate source of law 
in Timor -Leste; (ii) the Laws are generic provisions enacted by the competent organs of the State;  
and, (iii) the sources of law in Timor -Leste are: (a) the Constitution; (b) Laws emanating from 
the National Parliament and from the Government; and , (c) subsidiarity, regulation s and other legal 
instruments from UNTAET as long as these are not repealed, as well as Indonesian legislation under 
the terms of Article 1 of the present law.  
With the approval  of the new Civil Code of Timor -Leste (Law No.10/2011 of 14 September 2011 , 
which replaced the prior Indonesian Civil Code that had been widely applied), it is not common to 
find Indonesian legislation applied (except in the case of petroleum tax matters).  
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 8(A) 
Classification of Economic Activities  in Timor -Leste  – Low Ri sk (revoked  by Decree -Law 
No. 83/2022 of 23 November 2022 ) 
Code (Timor -Leste 
classification)  Activity  
C MANUFACTURING INDUSTRIES  
13  Manufacture of textiles  
131  1310  Preparation, spinning, weaving and finishing of textiles  
139  Manufacture of other textiles  
 1391 Manufacture of made -up textile articles, except apparel  
 1392 Manufacture of carpets and rugs  
 1393 Manufacture of rope and nets  
 1394 Wool processing for mattresses  
 1399 Manufacture of other textiles, not specified (n.s.)  
14  Clothing industry  
141  Manufacture of apparel, except fur articles  
 1411 Manufacture of apparel in series  
 1412 Tailor made clothing  
142  1420  Manufacture of fur articles  
143  1430  Manufacture of knitted articles  
16  Wood and cork industries and articles thereof, except furniture; 
Manufacture of basketwork and wickerwork  
161  1610  Sawmilling, plan ning and impregnation of wood  
162  Manufacture of articles of wood, cork, straw and plaiting materials, except furniture  
 1624 Manufacture of basketwork and wickerwork  
18  Printing and reproduction of recorded media  
181  Printing and service activities related to printing  
 1811 Printing of newspapers  
 1812 Other printing  
 1813 Service activities related to printing  
182  1820  Reproduction of recorded media  
32  Other manufacturing industries  
321  Manufacture of jewellery , goldsmiths' jewellery , imitation jewellery  and similar 
articles; coinage  
 3212 Manufacture of imitation jewellery   
322  3220  Manufacture of musical instruments  
323  3230  Manufacture of sports goods  
329  3290  Manufacturing industries, n.s.  
33  Repair, maintenance of metal products, machinery and equipment  
331  Repair and maintenance of metal products, machinery and equipment  
 3311 Repair and maintenance of metal products (except machinery and equipment)  
 3312 Repair and maintenance of machinery and equipment  
 3313 Repair and maintenance of electronic and optical equipment  
 3314 Repair and maintenance of electrical equipment  
 3315 Repair and maintenance of transport equipment, except vehicles  
 3316 Repair and maintenance of other equipment  
332  3320  Installation of industrial machinery and equipment  
F  CONSTRUCTION  
41  Real estate development (development of building projects); building 
construction  
411  Real estate development (development of building projects)  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
45  Trade, maintenance and repair of motor vehicles and motorcycles  
451  4510  Motor Vehicle Trade  
453  4530  Motorcycle Parts & Accessories Trade  
454  Trade in motorcycles, parts and accessories  
 4541 Wholesale and retail trade in motorcycles, parts and accessories  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
461  4610  Wholesale trade agents  
464  Wholesale of consumer goods, except food, beverages and tobacco  
 4641 Wholesale of textiles, clothing and footwear  
 4642 Wholesale of electrical household appliances and radio and television goods  
 4649 Wholesale of other consumer goods  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Code (Timor -Leste 
classification)  Activity  
465  Wholesale trade of information and communication technology (ICT) equipment  
 4651 Wholesale of computers, computer peripheral equipment and software  
 4652 Wholesale of electronic and telecommunications equipment and their parts  
 4653 Wholesale of agr icultural machinery and equipment  
 4659 Wholesale of other machinery and equipment  
466  Other specialized wholesale trade  
 4663 Wholesale of rough wood and derived products  
 4664 Wholesale of construction materials, hardware, tools and equipment and 
accessories for plumbing  
 4669 Wholesale of waste and scrap and other products n.s.  
469  4690  Non-specialized wholesale  
47  Retail sale, except motor vehicles and motorcycles  
471  Retail sale in non -specialized stores  
 4719 Retail sale in non -specialized stores without food, beverages or tobacco 
predominating  
474  Retail sale of information and communication technology (ICT) equipment, in 
specialized stores  
 4741 Retail sale of computers, peripheral units, software and te lecommunications 
equipment, in specialized stores  
 4742 Retail sale of audiovisual equipment, in specialized stores  
 4762 Retail sale of discs, CDs, DVDs, cassettes and similar items, sports goods, games 
and toys, in specialized stores  
477  Retail sale of other goods, in specialized stores  
 4771 Retail sale of clothing, footwear, leather and travel articles, in specialize d stores  
 4773 Retail sale of other new goods, in specialized stores  
 4774 Retail sale of second -hand goods, in specialized stores  
478  Retail sale in stalls, fairs and mobile sales units  
 4781 Retail sale in stalls, fairs and mobile sales units, of agricultural food products  
 4782 Retail sale in stalls, fairs and mobile sales units, of processed food, beverages and 
tobacco  
 4783 Retail sale in stalls, fairs and mobile sales units, of textiles, clothing, footwear, 
luggage and the like  
 4784 Retail sale in stalls, fairs and mobile  sales units, of articles and equipment for 
domestic use  
 4786 Retail sale in stalls, fairs and mobile sales units, of stationery, newspapers and 
sports articles  
 4787 Retail sale in stalls, fairs and mobile sales units, of handicrafts, toys and paints   
 4789 Retail sale in stalls, fairs and mobile sales units, of other products  
479  Retail sale not in stores, fairs or markets  
 4791 Retail sale via mail order or via the Internet  
 4792 Retail sale by other means, not in stores, stalls, fairs or mobile sales units  
H  TRANSPORTATION AND STORAGE  
52  Warehousing and auxiliary transport activities (including handling)  
521  5210  Storage  
53  Postal and courier activities  
531  5310  Postal activities subject to universal service obligations  
532  5320  Other postal and courier activities  
J  INFORMATION AND COMMUNICATION ACTIVITIES  
58  Editing activities  
581  Publishing of books, newspapers and other publications  
 5811 Book publishing  
 5812 Editing lists for consultation  
 5813 Publishing of newspapers, magazines and other periodicals  
 5819 Other editing activities  
582  5820  Software publishing  
59  Cinematographic, video, television program production, sound recording 
and music publishing activities  
591  Cinematographic, video and television program activities  
 5911 Motion picture, video and television production activities and post -production 
techniques for films, videos and television programs  
 5912 Distribution of films, videos and television programs  
 5913 Film and video projection  
592  5920  Sound recording and music publishing activities  
62  Computer consulting and programming and related activities  
620  Computer consulting and programming and related activities  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Code (Timor -Leste 
classification)  Activity  
 6201 Computer programming activities  
 6202 Computer consultancy and management activities and use of computer equipment  
 6209 Other activities related to information technology and computing  
63  Information services activities  
631  Data processing activities, domiciliation of information and related activities; web 
portals  
 6311 Data processing activities, domiciliation of information and related activities  
 6312 Web Portals  
639  Other information service activities  
 6391 Activities of news agencies  
 6392 Other information service activities, n.s.  
L  REAL ESTATE ACTIVITIES  
68  Real estate activities  
681  6810  Buying and selling of real estate  
682  6820  Property Leasing  
M  CONSULTING, SCIENTIFIC, TECHNICAL AND SIMILAR ACTIVITIES  
69  Legal and accounting activities  
691  6910  Legal activities  
692  6920  Accounting and auditing activities; tax consultancy  
70  Activities of social headquarters and management consultancy  
701  7010  Activities of social headquarters  
702  7020  Business and management consultancy activities  
74  Other consulting, scientific, technical and similar activities  
741  7410  Design Activities  
742  7420  Photographic activities  
743  7430  Translation and interpretation activities  
749  7490  Other consulting, scientific, technical and similar activities, n.s.  
N  ADMINISTRATIVE AND SUPPORT SERVICES ACTIVITIES  
77  Rental activities  
771  7710  Vehicle rental  
772  7720  Rental of personal and household goods  
773  Rental of other machinery and equipment  
 7731 Rental of means of transport by sea and river  
 7732 Rental of machinery and equipment for building and civil engineering  
 7733 Rental of office machinery and equipment (includes computers)  
 7734 Rental of other machinery and equipment, n.s.  
774  7740  Lease of intellectual property and similar products, except copyrights  
78  Employment activities  
781  7810  Activities of recruitment and placement companies  
782  7820  Temporary employment agency activities  
783  7830  Other human resources provision  
79  Travel agencies, tour operators, other booking services and related 
activities  
799  7990  Other booking services and related activities  
81  Activities related to buildings, planting and maintenance of gardens  
811  8110  Combined support activities for buildings  
812  8120  Cleaning activities  
813  8130  Planting and garden maintenance activities  
82  Business administrative and support service activities  
821  8210  Administrative and support service activities  
822  8220  Call Center activities  
823  8230  Organization of fairs, congresses and other similar events  
829  Business support service activities, n.s.  
 8291 Packing activities  
 8299 Other business support service activities, n.s.  
R  ARTISTIC, PERFORMING, SPORTS AND RECREATIONAL ACTIVITIES  
90  900  Theater, music, dance and other artistic and literary activities  
 9001 Theater, music, dance and other performing arts activities  
 9002 Artistic and literary creation  
91  910  Activities of libraries, archives, museums and other cultural activities  
 9101 Activities of libraries and archives  
 9102 Activities of museums and historical sites and monuments  
 9103 Activities of zoos, botanists and aquariums and parks and nature reserves  
93  Sports, entertainment and recreational activities  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Code (Timor -Leste 
classification)  Activity  
931  Sports activities  
 9311 Activities of sports clubs  
 9319 Other sports activities  
932  9320  Fun and recreational activities  
S  OTHER SERVICE ACTIVITIES  
94  Activities of associative organizations  
941  Activities of economic, employers and professional organizations  
 9411 Activities of economic and employers' organizations  
 9412 Activities of professional organizations  
942  9420  Activities of trade unions  
949  Other activities of associative organizations  
 9491 Activities of religious organizations  
 9493 Activities of youth and student associations  
 9499 Other activities of associative organizations, n.s.  
95  Repair of computers and personal and household goods  
951  Repair of computers and communication equipment  
 9511 Repair of computers and peripheral equipment  
 9512 Repair of communications equipment  
952  Repair of personal and household goods  
 9521 Repair of televisions and other similar consumer goods  
 9522 Repair of household and other household and garden equipment  
 9523 Repair of furniture and the like for domestic use  
 9529 Repair of watches, jewelry and other personal and household goods  
96  960  Other personal service activities  
 9601 Washing an d dry cleaning of textiles and fur  
 9602 Hairdressing and other beauty treatment activities  
 9603 Funeral and related activities  
 9609 Other personal service activities, n.s.  
T  ACTIVITIES OF HOUSEHOLDS EMPLOYING DOMESTIC STAFF AND FAMILY 
PRODUCTION ACTIVITIES FOR OWN USE  
97 - 970 9700  Activities of households employing domestic staff  
98  Activities of production of goods and services by households for own use  
981  9810  Activities of production of goods by households for own use  
982  9820  Activities of production of services by households for own use  
U  ACTIVITIES OF INTERNATIONAL ORGANIZATIONS AND OTHER EXTRA -
TERRITORIAL INSTITUTIONS  
99 - 990 9900  Activities of international organizations and other extra -territorial 
institutions  
Source:  Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities".  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 8(B) 
Classification of Economic Activities – Medium Risk  (revoked  by Decree-Law 
No. 83/2022 of 23 November 2022 ) 
Code (Timor -Leste 
classification)  Activity  
A AGRICULTURE, LIVESTOCK PRODUCTION, HUNTING, FOREST, FISHING 
AND AQUACULTURE  
01  Agricultural, livestock production, hunting and related services 
activities  
011  Temporary crops  
 0111 Cereals (except rice), dried leguminous plants and oil seeds  
 0112 Rice culture  
 0113 Culture of vegetables, roots and tubers  
 0119 Other temporary crops  
012  Permanent crops  
 0121 Culture of tropical and subtropical fruits  
 0122 Citrus Culture  
 0123 Culture of oleaginous fruits  
 0124 Coffee culture  
 0129 Other permanent crops  
013  0130  Culture of vegetative propagating material  
014  Livestock production  
 0141 Breeding cattle and buffaloes  
 0142 Breeding of equines, asinines and mules  
 0143 Breeding of sheep and goat  
 0144 Pig breeding  
 0145 Poultry farming  
 0149 Other livestock production  
015  0150  Combined agriculture and livestock production  
016  0160  Services activities related to agriculture and livestock production  
017  0170  Hunting and related services  
02  Forestry and forest exploration  
021  Forestry and other forestry activities  
 0211 Planted forests  
 0212 Natural forests  
022  0220  Forest exploration  
023  0230  Harvesting of forest products other than wood  
024  0240  Services activities related to forestry and forest exploration  
03  Fishing and aquaculture  
031  Fishing  
 0311 Sea fishing  
 0312 Inland fishing  
032  0320  Aquaculture  
034  0340  Service activities related to fishing and aquaculture  
C  MANUFACTURING INDUSTRIES  
10  Food industry  
103  1030  Processing and preserving of fruit and vegetables  
104  1040  Production of animal and vegetable oils and fats  
105  1050  Dairy industry  
106  Processing of cereals and legumes; Manufacture of starches, starch products 
and related products  
 1061 Processing of cereals and legumes  
 1062 Manufacture of starches, starch products and related products  
107  Manufacture of bakery and other flour products  
 1071 Bakery  
 1072 Manufacture of pastry, biscuits, cookies and toasts  
1  1073 Manufacture of cocoa, chocolate and sugar confectionery  
 1074 Coffee industry  
 1079 Manufacture of other food products, n.s.  
108  1080  Manufacture of animal feed  
11  Beverage industry  
110  Beverage industry  
 1101 Manufacture of distilled alcoholic beverages  
 1102 Wine industry (includes palm wine)  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Code (Timor -Leste 
classification)  Activity  
 1103 Brewing and malting  
 1104 Manufacture of soft drinks; production of natural mineral waters and other 
bottled waters  
12  Tobacco industry  
120  1200  Tobacco industry  
15  Industry of leather and leather products  
151  1510  Tanning and finishing of non -fur and fur; manufacture of travel goods and 
personal use products, of fine leather goods, saddlery and harness  
152  1520  Footwear industry  
16  Wood and cork industries and articles thereof, except furniture; 
Manufacture of basketwork and wickerwork  
162  Manufacture of articles of wood, cork, wickerwork and basketwork, except 
furniture  
 1621 Manufacture of veneer and wood -based panels  
 1622 Manufacture of other carpentry work for construction  
 1623 Manufacture of wooden containers  
 1629 Manufacture of other products of wood and cork  
17  Manufacture of pulp, paper, paperboard and other paper products  
171  Manufacture of pulp, paper and paperboard (except corrugated board)  
172  Manufacture of paper and corrugated paperboard, paper and paperboard 
products  
22  Manufacture of rubber and plastic products  
221  2210  Manufacture of rubber articles  
222  2220  Manufacture of articles of plastics  
23  Manufacture of other non -metallic mineral products  
231  2310  Manufacture of glass and glass products  
232  Manufacture of refractory ceramic products  
233  Manufacture of ceramic products for construction  
234  Manufacture of other non -refractory porcelain and ceramic products  
237  Sawing, cutting and finishing of ornamental stones and other building stones  
239  Manufacture of non -metallic mineral products, n.s.  
 2391 Manufacture of ceramic products for domestic and ornamental purposes and 
other products, except for building  
 2392 Manufacture of ceramic products for construction  
 2393 Manufacture of concrete products for construction  
 2394 Manufacture of ready concrete  
 2395 Sawing, cutting and finishing of building stones  
 2399 Manufacture of other non -metallic mineral  products, n.s.  
24  Basic metallurgical industries  
241  2410  Steel industry and the manufacture of ferroalloys  
242  2420  Manufacture of tubes, pipes, hollow profiles and associated steel accessories  
25  Manufacture of metal products, except machinery and equipment  
251  Manufacture of reservoirs, containers, boilers and metal radiators, for central 
heating  
 2511 Manufacture of door structures, windows and similar metal elements  
 2512 Manufacture of reservoirs, containers, boilers and steam generators  
259  Manufacture of other metal products, metal treatment and coating and general 
mechanical activities  
 2591 Manufacture of forged, stamped and laminated products  
 2592 Treatment and coating of metals and general mechanic activities  
 2593 Manufacture of cutlery, hand tools and hardware  
 2599 Manufacture of other metal products, n.s.  
26  Manufacture of computer equipment, communication equipment and 
electronic and optical products  
261  2610  Manufacture of components and plates, electronic  
262  2620  Manufacture of computers and peripheral equipment  
263  2630  Manufacture of communication equipment and devices  
264  2640  Manufacture of radio and television receivers and similar consumer goods  
265  2650  Manufacture of instruments and appliances for measuring, checking and 
navigating; watches and watchmaking equipment  
27  Manufacture of electrical equipment  
271  2710  Manufacture of electric motors, generators and transformers and manufacture 
of distribution and control equipment for electrical installations, accumulators, 
batteries and insulated cables and their accessor ies  
272  2720  Manufacture of electric lamps and other lighting equipment  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 109 - 
 
  Code (Timor -Leste 
classification)  Activity  
273  2730  Manufacture of household appliances and other household appliances  
279  Manufacture of other electrical equipment  
28  Manufacture of machinery and equipment, n.s.  
281  2810  Manufacture of machinery and equipment for general use  
282  2820  Manufacture of other machinery and equipment for specific use  
29  Manufacture of motor vehicles, trailers, semi -trailers and components 
for motor vehicles  
291  2910  Manufacture of motor vehicles  
292  2920  Manufacture of coachworks, trailers and semi -trailers  
293  2930  Manufacture of parts and accessories for motor vehicles  
30  Manufacture of other transport equipment  
301  3010  Shipbuilding  
302  3020  Manufacture of rolling stock for railways  
303  3030  Manufacture of aircraft, spacecraft and related equipment  
304  3040  Manufacture of military combat vehicles  
309  Manufacture of other transport equipment, n.s.  
31  Manufacture of furniture and mattresses  
310  Manufacture of furniture and mattresses  
 3101 Manufacture of wooden furniture  
 3102 Manufacture of bamboo furniture  
 3109 Manufacture of mattresses and other furniture  
32  Other manufacturing  
321  Manufacture of jewelry , goldsmiths' jewelry, imitation jewelry and similar 
articles; coinage  
 3211 Manufacture of jewelry, goldsmiths' jewelry and similar articles; coinage  
324  3240  Manufacture of games and toys  
325  3250  Manufacture of medical -surgical instruments and materials  
D  ELECTRICITY, GAS, STEAM, HOT AND COLD WATER AND COLD AIR  
35  Electricity, gas, steam, hot and cold water and cold air  
353  Production and distribution of steam, hot and cold water and cold air by 
pipeline; ice production  
 3531 Production and distribution of steam, hot and cold water and cold air by pipeline  
 3532 Ice production  
F  CONSTRUCTION  
43  Specialized construction activities  
433  4330  Finishing activities in buildings  
439  Other specialized construction activities  
 4391 Rental of construction and demolition equipment with operator  
 4399 Other specialized construction activities, n.s.  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
45  Trade, maintenance and repair of motor vehicles and motorcycles  
452  4520  Maintenance and repair of motor vehicles  
454  Trade, maintenance and repair of motorcycles, their part s and accessories  
 4542 Maintenance and repair of motorcycles, their parts and accessories  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
462  4620  Wholesale of agricultural raw materials and live animals  
463  4630  Wholesale of food, beverages and tobacco  
47  Retail trade, except of motor vehicles and motorcycles  
471  Retail sale in non -specialized stores  
 4711 Retail sale in non -specialized stores with food, beverages or tobacco 
predominating  
472  Retail sale of food, beverages and tobacco  
 4721 Retail sale of fruit and vegetables in specialized stores  
 4722 Retail sale of bread, bakery and confectionery p roducts in specialized stores  
 4729 Retail sale of other food, beverages and tobacco in specialized stores  
477  Retail sale of other goods in specialized stores  
 4772 Retail sale of pharmaceutical, medical, cosmetic and toilet articles in specialized 
stores  
478  Retail sale in stalls, fairs and mobile sales units  
 4785 Retail sale in stalls, fairs and mobile sales units, of fuels and lubricants  
H  TRANSPORTATION AND STORAGE  
52  Warehousing and activities auxiliary to transport  
522  Activities auxiliary to transport  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 110 - 
 
  Code (Timor -Leste 
classification)  Activity  
 5221 Activities auxiliary to land transport  
 5222 Activities auxiliary to water transport  
 5223 Activities auxiliary to air transport  
 5224 Load Handling  
 5225 Activities of freight forwarders and customs agents of maritime transport  
 5226 Activities of freight forwarders and customs agents of air  transport  
 5229 Other transport support activities  
I  ACCOMMODATION, RESTAURANT SERVICES AND SIMILAR  
56  Restaurant services and similar  
562  Catering for events and other catering services  
 5621 Event catering  
 5629 Other catering services  
J  INFORMATION AND COMMUNICATION ACTIVITIES  
60  Radio and television activities  
601  6010  Radio activities  
602  6020  Television activities  
61  Telecommunications  
611  6110  Wired telecommunications activities  
612  6120  Wireless telecommunications activities  
613  6130  Satellite telecommunication activities  
619  6190  Other telecommunications activities  
M  ACTIVITIES OF CONSULTING, SCIENTIFIC,  
TECHNIQUES AND SIMILAR  
71  Architectural, engineering and related technical activities;  
Testing and technical analysis activities  
711  7110  Architectural, engineering and related technical activities  
712  7120  Testing and technical analysis activities  
72  Scientific and development research activities  
721  Research and development of the physical and natural sciences  
 7211 Research and development of the natural sciences  
 7212 Research and development of the physical sciences and engineering  
722  Research and development of social and human sciences  
 7221 Research and development of social sciences  
 7222 Research and development of the humanities  
73  Advertising, market research and opinion polls  
731  Advertising  
732  Market research and opinion polls  
75  Veterinary activities  
750  7500  Veterinary activities  
N  ADMINISTRATIVE ACTIVITIES AND SUPPORT SERVICES  
79  Travel agencies, tour operators, other booking services and related 
activities  
791  7910  Travel agencies and tour operators  
80  Research and safety activities  
801  8010  Private security activities  
802  8020  Activities related to security systems  
P  EDUCATION  
85  Education  
855  8550  Services and support to education activities  
Q  HUMAN HEALTH AND SOCIAL SUPPORT ACTIVITIES  
88  Social support without accommodation activities  
881  8810  Social support without accommodation activities for the elderly and disabled  
889  Other social support activities without accommodation  
 8891 Care activities for children, without accommodation  
 8899 Other social work activities without accommodation, n.s.  
R  ARTISTIC, PERFORMING, SPORTS AND RECREATIONAL ACTIVITIES  
92 - 920 9200  Lotteries and other sports betting  
S  OTHER SERVICE ACTIVITIES  
94  Activities of associative organizations  
949  Other activities of associative organizations  
 9492  Activities of political organizations  
Source:  Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities"  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 111 - 
 
  ANNEX 8(C) 
Classification of Economic Activities – High Risk  (revoked  by Decree -Law No. 83/2022 of 
23 November 2022 ) 
Code (Timor -Leste 
classification)  Activity  
B EXTRACTIVE INDUSTRIES  
05  Extraction of hard coal and lignite  
051  0510  Extraction of hard coal (includes anthracite)  
052  0520  Extraction of lignite  
06  Extraction of oil and natural gas  
061  0610  Extraction of crude oil  
062  0620  Extraction of natural gas  
07  Extraction and preparation of metallic minerals  
071  0710  Extraction and preparation of iron ores  
072  0720  Extraction and preparation of non -ferrous minerals  
08  Other extractive industries  
081  Extraction of stone, sand and clay  
 0811 Extraction of stone for construction  
 0812 Extraction of sand  
 0813 Extraction of crushed stone  
 0814 Extraction of clay and kaolin  
089  Extractive industries, n.s.  
 0891 Extraction of minerals for the chemical industry and the manufacture of 
fertilizers  
 0892 Extraction of salt  
 0893 Other extractive industries, n.s.  
09  Service activities related to extractive industries  
091  0910  Service activities related to oil and gas extraction, except prospecting  
099  0990  Other service activities related to extractive industries  
C  MANUFACTURING INDUSTRIES  
10  Food industry  
101  1010  Preparation and preservation of meat and meat products  
102  1020  Processing and preserving of fish, crustaceans and molluscs  
19  Manufacture of coke, refined petroleum products and agglomerates of 
fuels  
191  1910  Manufacture of coking products  
192  1920  Manufacture of refined petroleum products and agglomerates of fuels  
20  Manufacture of chemicals and synthetic or artificial fibers, except 
pharmaceuticals  
201  Manufacture of basic chemicals, fertilizers and nitrogen compounds, plastics 
and synthetic rubber, in primary forms  
202  Manufacture of pesticides and other agrochemical products  
 2021 Manufacture of soap and detergents, cleaning and polishing preparat ions, 
perfumes and hygiene products  
 2029 Manufacture of other chemical products, n.s.  
203  2030  Manufacture of paints, varnishes and similar products; mastics; printing inks  
204  Manufacture of soap and detergents, cleaning and polishing preparations, 
perfumes and toilet preparations  
205  Manufacture of other chemical products  
206  Manufacture of synthetic or artificial fibers  
21  Manufacture of basic pharmaceutical products and pharmaceutical 
preparations  
211  Manufacture of basic pharmaceutical products  
212  Manufacture of pharmaceutical preparations  
23  Manufacture of othe r non -metallic mineral products  
235  Manufacture of cement, lime and plaster  
236  Manufacture of concrete, plaster and cement products  
239  Manufacture of abrasive and other non -metallic mineral products  
25  Manufacture of metal products, except machinery and equipment  
252  2520  Manufacture of weapons and ammunition  
26  Manufacture of computer equipment, communication equipment and 
electronic and optical products  
266  Manufacture of radiation, electromedical and electrotherapeutic equipment  
D  ELECTRICITY, GAS, STEAM, HOT AND COLD WATER AND COLD AIR  
35  Electricity, gas, steam, hot and cold water and cold air  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 112 - 
 
  Code (Timor -Leste 
classification)  Activity  
351  3510  Electricity generation, transportation, distribution and trade  
352  3520  Gas production; distribution of gaseous fuels through pipelines; gas trade  
E  DECONTAMINATION  
36 - 360 3600  Water collection, treatment and distribution  
37 - 370 3700  Collection, drainage and treatment of waste water  
38  Collection, treatment and disposal of waste; valuation of materials  
381  Collection of waste  
 3811 Collection of non -hazardous waste  
 3812 Collection of hazardous waste  
382  Treatment and disposal of waste  
 3821 Treatment and disposal of non -hazardous waste  
 3822 Treatment and disposal of hazardous waste  
383  3830  Valorization of materials  
39 - 390 3900 Decontamination and similar activities  
F  CONSTRUCTION  
41 - 410 4100  Building construction (residential and non -residential)  
42  Civil Engineering  
421  4210  Construction of roads, bridges, tunnels, runways of airports and railways  
422  4220  Construction of water transport networks, sewage, power distribution, 
teleco mmunications and other networks  
429  4290  Construction of other civil engineering works  
43  Specialized construction activities  
431  4310  Demolition and construction preparation  
432  Electrical installation, plumbing, air conditioning and other installations  
 4321 Electric installation  
 4322 Plumbing and air conditioning installation  
 4329 Other installations under construction  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
466  Wholesale of other machinery, equipment and their parts  
 4661 Wholesale of solid, liquid, gaseous fuels and derived products  
 4662 Wholesale of metals and metal ores  
47  Retail trade, except of motor vehicles and motorcycles  
473  4730  Retail sale of fuels in specialized stores  
H  TRANSPORTATION AND STORAGE  
49  Land transport and transport by oil pipeline or gas pipeline  
491  4910  Transport by rail  
492  Other land transport (land passenger transport)  
 4921 Inland, urban and suburban passenger transport  
 4922 Other land passenger transport  
 4923 Road transport of merchandise  
493  4930  Transport by oil and gas pipelines  
50  Water transport  
501  Passenger sea transportation  
 5011 Passenger sea transportation  
 5012 Freight sea transport  
502  5020  Freight sea transport  
51  Air transport  
511  5110  Airline passenger transport  
512  5120  Air freight transport  
I  ACCOMMODATION, RESTAURANT SERVICES AND SIMILAR  
55  Accommodation  
551  Hotel establishments  
 5511 Hotel establishments  
 5512 Holiday Homes  
552  Camping and caravan parks  
 5521 Camping Parks  
 5522 Caravan Parks  
559  5590  Other places of accommodation  
56   
561   
 5611  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 113 - 
 
  Code (Timor -Leste 
classification)  Activity  
 5612  
563  5630  Food & Beverage establishments  
K  FINANCIAL AND INSURANCE ACTIVITIES  
64  Financial services activities, except insurance and pension funds  
641  Monetary intermediation  
 6411 Central bank  
 6412 Public bank  
 6419 Other monetary intermediation  
642  6420  Activities of holding companies  
643  6430  Trusts, funds and similar financial entities  
649  Other financial service activities, except insurance and pension funds  
 6491 Leasing activities  
 6492 Pawnshops  
 6493 Credit unions  
 6494 Other credit activities  
 6495 Venture capital companies  
 6499 Other financial services activities, n.s. except insurance and pension funds  
66  Activities auxiliary to financial services and insurance  
661  Activities auxiliary to financial services, except insurance and pension funds  
 6611 Financial Markets Management  
 6612 Trading activities on behalf of third parties in transferable securi ties and other 
financial instruments  
 6619 Other activities auxiliary to financial services, except insurance and pension 
funds  
662  6620  Activities auxiliary to insurance and pension funds  
663  6630  Fund management activities  
O  PUBLIC ADMINISTRATION AND DEFENSE; MANDATORY SOCIAL 
SECURITY  
84  Public administration and defense; mandatory social security  
841  Public administration in general, economic and social  
 8411 Central Public Administration  
 8412 Regional and Local Administration  
 8413 Public Administration - health, education, cultural and social activities, except 
mandatory social security  
 8414 Public Administration - economic activities  
 8415 Activities in support of Public Administration as a whole  
842  Foreign affairs, defens e, justice, security, public order and civil protection  
 8421 Foreign affairs  
 8422 Defense activities  
 8423 Justice activities  
 8424 Activities of Security, Public Order and Civil Protection  
843  8430  Mandatory social security activities  
P  EDUCATION  
85  Education  
851  Pre-school education and basic education 1st and 2nd cycles  
 8511 Pre-school education  
 8512 Basic education 1st and 2nd cycles  
852  Basic education 3rd cycle and secondary  
 8521 Basic education 3rd cycle  
 8522  General Secondary Education  
 8523 Technical and vocational education  
853  8530  Higher education  
854  Other educational activities  
 8541 Professional qualification  
 8549 Other educational activities, n.s.  
Q  HUMAN HEALTH ACTIVITIES AND SOCIAL SUPPORT  
86  Human health activities  
861  8610  Activities of inpatient health facilities  
862  8620  Activities of outpatient clinics, dental and dentistry  
869  Other human health activities  
 8691 Clinical analysis laboratories  
 8692 Collection centers and organ banks  
 8699 Other human health activities, n.s.  
87  Social support activities with accommodation  
871  8710  Activities of continuous integrated outpatient care facilities with accommodation  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 114 - 
 
  Code (Timor -Leste 
classification)  Activity  
872  8720  Activities of establishments for persons with mental illness and drug abuse, 
with accommodation  
873  8730  Social support activities for the elderly and disabl ed, with accommodation  
879  8790  Other social support activities with accommodation  
Source:  Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities".  
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 115 - 
 
  ANNEX 9 
National Committee on Trade Facilitation  
Government Resolution No. 6/2016 of 17 February 2016 on the "National Commi ttee for Trade 
Facilitation " lists in Article 3 of the Annex the Ministries and Agencies that make up the Committee, 
as follows:  
1. The Committee is composed of Executive Members, a Technical Working Group, a Secretariat 
and Observer Members.  
2. Executive Members:  
a) Coordinating Minister for Economic Affairs (MCAE);  
b) Minister of Finance;  
c) Minister of Public Works, Transport and Communications;  
d) Minister of the Interior;  
e) Minist er of Tourism, Commerce and Industry ; 
f) Minister of Foreign Affairs and Cooperation;  
g) Minister of Agriculture an d Fisheries.  
3. Members of the Technical Working Group:  
a) Director General of Customs;  
b) Coordinator of the Tax Reform Program;  
c) MCAE representative;  
d) Representative of the Ministry of Foreign Affairs and Cooperation for ASEAN affairs;  
e) Inspector General of Food Sec urity;  
f) Director of the Timor -Leste Port Authority (APORTIL: Portuguese abbreviation);  
g) Director of the Civil Aviation Authority of Timor -Leste (AACTL: Portuguese abbreviation);  
h) Director -General for Immigration;  
i) National Director of Quarantine and Bio security.  
4. Non-Executive Members:  
a) President of the Chamber of Commerce and Industry, or his /her representative;  
b) President of the Association of Customs Brokers, or his representative.  
5. Observer Members :  
a) World Bank Group;  
b) the Asian Development Bank.  
 
6. The Director -General of Customs coordinates the Technical Working Group.  
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 116 - 
 
  ANNEX 10  
Legislative Provisions related to Trade Facilitation  
The Customs Code frames and guides all subsidiary customs legislation that needs to be produced. 
The Code devotes Title XXI (Final Provisions) to the timetable, implementing regulations, 
implementing measures and complementary legislation. Examples of implementing regulations, 
implementing measures and complementary legislation inherent to the  Customs Code are as foll ows: 
Article 2 (Good Administrative Practices):  
1. Within one year from the date of entry into force of this Decree -Law, the Government approves, 
by Resolution of the Council of Ministers, a 'Guide to good administrative practices'. 2. The guide 
mentioned  in the preceding paragraph is a standard reference document for conducts by the Public 
Administration.   
Article 15 (Publication):  
1. Without prejudice to the provisions of the following paragraph and upon proposal from the Director 
General [of Customs], t he Minister approves the forms relating to customs declarations, to 
the collection of customs tax revenue, to the application of the customs valuation system of goods 
or to the fulfilment of the duties established in this Code and other customs legislation  in force.  
2. Forms for the customs control of persons, goods and means of transport shall be approved by 
the Director -General. 3. The updated list of all forms in force as well as the places where they can 
be purchased should, wherever possible, be publis hed on the official website of the Ministry of 
Finance or Customs.  
Section III (Representative Professional Public Association of Official Dispatchers), Article 43 
(Representativeness):  
1. The representative association of official brokers is the professio nal and representative association 
of the respective professional card holders. 2. Membership in the association is mandatory as 
an indispensable condition for the official broker to be able to exercise his profession. 3. The Statutes 
of the association, a s well as the respective amendments, are approved by a proper diploma and 
published in the Official Gazette.  
Article 79 (Records and Payments):   
1. It is the responsibility of the Director General, by way of notice published in the Official Gazette, 
to approve: (a) documents required or established by customs legislation which may be transmitted 
through a stipulated electronic record; (b) Payment r equired or established by Customs legislation 
which may be made through a stipulated electronic format; (c) Customs information system for 
which such documents may be transmitted, or by means of which such payments may be effected. 
2. The electronic transm ission of documents or the payments indicated in the previous paragraph 
are subject to authorization by the Director General according to article 80, or other conditions that 
may be stipulated. 3. The Director General may determine that the documents or pa yments referred 
to in paragraph 1 of this article be transmitted in electronic form, without prejudice to any exceptions 
that may be stipulated.  
Article 179 (Prohibited Import Goods):  
Without prejudice to the provisions of special legislation and acts of international law subscribed by 
the Government of Timor -Leste, it is prohibited to import certain goods to be defined in a list 
approved by the Minister.  
Article 180 (Conditional Import Goods):  
Without prejudice to the provisions of special legislation and  acts of international law subscribed by 
the Government of Timor -Leste, only the goods in a list to be approved by the Minister may be 
subject to conditional imports, as long as they comply with the conditions established in the 
respective legal instrument . WT/ACC/SPEC/TLS/5/Rev.1  
 
- 117 - 
 
  According to Chapter V (Customs Warehouse), Article 197 (Concept):  
1. Customs warehousing procedure shall permit the storage of imported goods in a customs 
warehouse, irrespective of the quantity, country or place of origin and destination, with suspensi on 
of duties and other import charges or subject to commercial policy measures.  
In such circumstances, Article 204 (Authorized Operations) provides:  
2. Usual handlings [of such goods] must be detailed in a list to be approved by the Minister, upon 
propos al by the Director General, and their realization must be authorized by the Director of Customs 
Control, who will determine the  conditions under which they can be carried out.  
Section V (Circulation of goods subject to Selective Consumption Tax – ISC - and control of exit from 
port facilities), Article 226 (Documents accompanying goods subject to ISC):  
1. The circulation of goods subject to ISC  that are in suspension regime is made with a document of 
accompaniment whose model will be approved by order of the Minister.  
Chapter IV (Guarantee for Customs Debt), Article 323 (Requirement of Guarantee):  
1. Always, when enforcing customs legislation, i f the Customs require a guarantee to ensure 
payment of a customs debt, such guarantee shall be provided by the debtor. 2. When the debtor is 
a service of Public Administration, the bank guarantee may be replaced by a commitment voucher 
of payment (CVP). 3.  The list of Public Administration services authorized to use the commitment 
voucher of payment shall be approved by the Minister.  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 118 - 
 
  ANNEX 11 
National Single Window Project : Activities and Timeline  
Agency  Type Timeline  Agreement (MOU)  Status  
First Phase  
TradeInvest Timor -
Leste I.P.  Government  February 2021  Signed  Live 
Ministry of Tourism, 
Commerce and 
Industry 
(Commercial Vehicle 
Importation – pre-
approval)  Government  October  2021 
 
 
January  2022 
 
 Protocol  of 
cooperation  signed  
 
 
 
 Live 
 
 
 
 
Secretary State for 
Environment – 
Department of 
Ozone Depleting 
Substance  Government  September 2021  
 
 
 Protocol of 
Cooperation Signed   Live 
APORTIL (Port 
Authority of Timor -
Leste I.P.)  
(Issuance of Exit 
Notes)  Government  October 2021  
 
 
August 2021  Protocol  of 
Cooperation  Signed   
 
 
Live 
Ministry of Health - 
The Autonomous 
Service for Medicines 
and Health 
Equipment (SAMES),  
 
 
The Pharmacy & 
Medicines National 
Directorate,  
 
 
 
 
 
 
 
The Licensing and 
the Registration of 
Health Activities 
National Directorate  Government  October  2021 
 
 
January 2022  
 
 
 
August 2022  
 
 
 
 
 
 
 
 
 
September 2022  Protocol of 
Cooperation Signed  
 
 
 
 
 
Protocol of 
Cooperation is under 
negotiation with 
both Directorates   
 
 
Live 
 
 
 
Module isdeveloped 
– Basic Training on 
AW for staff has  
been completed. 
Awaiting for 
confirmation  of MoH 
for further training 
to staff and  plan for 
rollout  
 
Module development  
is ongoing  
National Directorate 
for Quarantine and 
Biosecurity, Ministry 
of Agriculture and 
Fisheries  Government  October  2021 
 
 
July 2022  Protocol  of 
Cooperation  Signed   
 
 
Live  
National Directorate 
for Land Transport, 
Ministry Transport 
and Communication 
– Commercial 
Vehicle Importation 
Approval and the 
Issuance of Plate 
numbers  Government  June 2022 
 
 
March 2022  Protocol  of 
Cooperation  Signed  
  
 
 
Live 
Tax Authority / 
SERVE  
 Government  September  2022 In progress  Ongoing  technical 
work with system 
consultants  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 119 - 
 
  Agency  Type Timeline  Agreement (MOU)  Status  
Ministry of Tourism, 
commerce and 
Industry 
(Automating the 
existing process of 
the issuance of 
Certificates of 
Origins)  Government  August  2022 In progress   Module is developed 
– Awaiting for 
agreement from 
MTCI for User 
Acceptance Test  
Immigration 
Services of Timor -
Leste Government  December  2022 In progress  System to system 
interface is  subject 
to the  completion  of 
Immigration  
Department 's owned  
system, the BMIS  
New Timor Port 
(Bollore)  PPP August  2022 In progress  Final discussion with 
Timor Port on 
system Connectivity 
and data 
storage/Exchange  
Commercial Banks 
(BNU and BNCTL)  Private  December  2022  In progress  Subject to ongoing  
discussion  with BCTL  
Trade Community  
- Traders  
- Customs Brokers  
- Shipping Agents  
- Transporter  Private  Ongoing and case to 
case   Launching for 
traders, customs 
brokers, shipping 
agentes, and  
transporters are 
done simultaneously  
with the respective  
OGAs when they are 
launched  
Interface with 
Indonesia  Government  December 2022  In progress  First meeting with 
DGCE -RI was held 
in December 2021  
Currently the two 
parties are planned 
for the second 
meeting in August or 
September  
Second phase  
Interface with a 
CPLP Country 
(Brazil)  Government  2023 Pending  Pending  
Interface with CPLP 
SW Government  2023 Pending  Pending  
Gateway between 
CPLP and ASEAN 
Countries  Government  2023 Pending  Pending  
 
The Timor -Leste National Single Window project is divided into two phases.  
The first phase  involves nine  Government agencies, one private company (Bollore – New Timor Port), 
and Indonesia:  
• Trade Invest Timor -Leste ; 
• Ministry of Tourism, Commerce and Industry ; 
• National Directorate for Land Transport ; 
• Ozone Depleting Substance Directorate under the Secretary State for Environment;  
• Ministry of Health ; 
• Quarantine Authority, Ministry of Agriculture and Fisheries ; 
• Port Authority of Timor -Leste ; 
• New Timor Port (Bollore company) ; 
• Tax Authority, and the Public Institute on Registry Service and Business Verification (SERVE ); 
• Immigration Services ; 
• Indonesia.  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 120 - 
 
  In addition, this phase will include engagement with the private sector (traders, brokers, shipping 
agents and transporters) who are the intended users of the single window platform.  
This process includes: (i) capacity building for government staff; (ii) reviewing and optimizing 
internal processes of each institution; and (iii ) providing electronic infrastructure to each government 
agency under the ASYCUDA World Platform.  
Accordingly, the Government, through the Customs Authority, has provided familiarization sessions 
to the nine government agencies and is reviewing each govern ment agency internal process. 
In addition, during this phase, the Customs Authority is planning to engage with some private 
institutions, including commercial banks, with a hope to reach an agreement soon.  
Linkage between Timor -Leste's National Single Win dow and Indonesia's Pilot data exchange system 
under the MoU on Cross Border Trade between Indonesia and Timor -Leste is in the Government's 
agenda. This will ultimately facilitate linkage with the ASEAN Single Window.  
The second phase will involve implemen tation of data exchange with CPLP countries, CPLP Single 
window and ASEAN Single Window. The plan is to link Timor -Leste's National Single Window and 
Brazil as a selected CPLP member state, and to further finalize the linkage between the ASEAN and 
CPLP reg ional Single Window via the National TL -TSWS gateway.  
    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 121 - ANNEX 12 
Categories of commitments under the WTO Trade Facilitation Agreement  
Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 1  Publication and Availability of Information  
Article 1.1  Publication  B 2023 2025 - 
Article 1.2  Information 
Available through 
Internet  C 2023 2025 Legal/Policy:  
• Undertake a study to take stock of all trade information available online; identify 
gaps and assess Timor -Leste's readiness to have a trade information portal/ 
website; undertake a cost and benefit analysis. Develop policy and legislate the 
mandate and process of publishing information  as necessary ; and make  this 
information available in online procedures  
• Review outdated Standard Operating Procedures  
Human Resources/Training:  
• Traini of IT Staff to design, develop and maintain websites  
• Train of Customs of ficials on the implementation of Standard Operating 
Procedures  
• Provide r elevant training of officials and the private sector  
Information and Communication Technology:  
• Develop and maintain a Trade Information Portal system (TIP) Infrastructure  
• Provide a ppropriate equipment and software programs for border agencies 
Consultations/Public Awareness  
• Undertake s takeholder consultations on the potential TIP  
Article 1.3  Enquiry Points  B 2022 2024 - 
Article 1.4  Notification  B 2022 2024 - 
Article 2  Opportunity to Comment, Information before Entry into Force and Consultations  
Article 2.1  Opportunity to 
Comment and 
Information 
Before Entry into 
Force  A - - - 
Article 2.2  Consultations  B 2022 2024 - 
Article 3  Advance Rulings  
    A - - -   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 122 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 4  Procedures for Appeal or Review  
    C 2023 2026 Operation:  
• Provide f inancial (and technical support where relevant) assistance required for 
the initial set -up and operation of the Customs Appeal Authority for the first five 
years  
Human resources/Training:  
• Carry out c apacity building and training for Customs officials on the 
implementation and application of this provision  
Article 5  Other Measures to Enhance Impartiality, non - Discrimination and Transparency  
Article 5.1  Notification for 
Enhanced Controls 
or Inspections  B 2022 2024 - 
Article 5.2  Detention  B 2022 2024 - 
Article 5.3  Test Procedures  A - - - 
Article 6  Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation and Penalties  
Article 6.1  General 
Disciplines on 
Fees and Charges 
Imposed on or in 
Connection with 
Importation and 
Exportation  A - - - 
Article 6.2  Specific 
Disciplines on 
Fees and Charges 
for Customs 
Processing 
Imposed on or in 
Connection with 
Importation and 
Exportation  A - - - 
Article 6.3  Penalty Disciplines  C 2023 2026 Human resources/Training:  
• Capacity building and training for Customs officials on the implementation and 
application of this provision    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 123 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 7  Release and Clearance of Goods  
Article 7.1  Pre-arrival 
Processing  C 2022 2025 Human Resources/Training:  
• Undertake capacity building and training for officials of Customs, Quarantine 
Biosecurity and Border agencies on the implementation and application of this 
provision  
Information and Communication Technology:  
• Enhance the technological capacity of Customs officials in implementing this 
provision  
Infrastructure:  
• Upgrade existing Customs and Border agencies systems and infrastructure to 
facilitate Pre-arrival processing  
• Upgrade and improve existing Quarantine Biosecurity infrastructure to facilitate 
pre-arrival processing  
Article 7.2  Electronic 
Payment  C 2022 2024 Legal/Policy:  
• Review existing systems and policies. And determine feasibility and resources 
required to set -up and operate an electronic payment system  
Human Resources/Training:  
• Undertake c apacity building and training for officials of Customs, Quarantine 
Biosecurity and Border agencies on electronic payment  
Information and Communication Technology:  
• Enhance technological capacity of border agencies and government agencies 
necessary to implement an electronic payment system  
Infrastructure:  
• Develop, set -up and install appropriate technology and equipment to put in place 
an electronic payment system  
Article 7.3  Separation of 
Release from Final 
Determination of 
Customs Duties, 
Taxes, Fees and 
Charges  B 2022 2025 -   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 124 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 7.4  Risk Management  C 2023 2026 Legal  
• Review/develop legal basis to enhance coordination and collaboration between 
border agencies on risk identification and application of risk management  
Policy  
• Develop a risk management policy with target percentages of low/high risk cargo  
• Develop a training plan for officials of Customs, Quarantine Biosecurity and 
Border agencies on risk management, targeting the application of risk 
management  
Procedures  
• Review and develop necessary procedures  
Human Resources/Training  
• Undertake c apacity building and training for Customs and Quarantine Biosecurity 
officials on risk management using transaction data from ASYCUDA system  
• Undertake Training and Development for border agencies staff on risk 
identification and profiling  
Information and Communication Technology  
•  Enhance technological capacity of Border agencies necessary to implement a 
proper risk management process/system  
Infrastructure  
• Provide Non-Intrusive Inspection equipment  
• Provide appropriate technology and equipment to support the implementation of 
a proper risk management system  
Article 7.5  Post-Clearance 
Audit C 2023 2026 Legal  
• Develop/review relevant legislations and policies for Post Clearance Audit (PCA)   
Policy  
• Develop a compliance assessment policy and procedure incorporating connectivity 
with risk management  
• Develop a training plan/module to train Customs officials and agents on the 
concept of 'informed compliance' and train the target groups  
• Develop a methodol ogy/approach to conduct a national compliance assessment 
on an annual basis  
Procedures  
• Develop and update processes and procedures that incorporate these aspects of 
PCA: 
• Draft a compliance assessment policy and procedure incorporating connectivity 
with ris k management  
• Draft a training module to train Customs and the Agents on the concept of 
'informed compliance' and train the target groups  
• Draft a methodology/approach to conduct a compliance assessment on an annual 
basis for the whole of Timor -Leste  
• Conduct  annual compliance assessments    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 125 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
• Train Customs staff to conduct PCA as a compliance assessment tool  
Human Resources/Training  
• Undertake c apacity building and training for Customs officials to conduct Post 
Clearance Audit s as a compliance assessment tool  
• Develop data analysis skills and knowledge for Customs and border agencies 
officials  
• Undertake c apacity building and training for Customs PCA officials on auditing 
techniques and methodology  
Information and Communication Te chnology  
• Enhance technological capacity of Border agencies necessary to implement  
Infrastructure  
• Provide appropriate technology and equipment to help implement PCA  
Article 7.6  Establishment and 
Publication of 
Average Release 
Times  B 2022 2024 - 
Article 7.7  Trade Facilitation 
Measures for 
Authorized 
Operations  C 2022 2025 Legal  
• Develop relevant legislation and policies to allow the setup of an Authorised 
Operators (AO) program  
Policy  
• Develop an Authorised Operators policy  
Procedures  
• Develop proper procedures and criteria for the assessment of authorised 
operators that meet specified criteria in the AO program  
Human Resources/Training  
• Undertake c apacity building and training for Customs and Quarantine officials on 
the implementation of the AO program  
Article 7.8  Expedited 
Shipments  C 2023 2025 Legal/Policy  
• Develop relevant legislation and policies  
Procedures  
• Review outdated Standard Operating Procedures  
Human Resources/Training  
• Train officials of Customs and Border agencies on clearance of commercial cargos 
at the airports  
• Train Customs officials on the implementation of Standard Operating Procedures  
Infrastructure  
• Provide a ppropriate equipment required such as x -rays, scanners and computers 
for border agencie s 
Article 7.9  Perishable Goods  B 2022 2025 -   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 126 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 8  Border Agency Cooperation  
    C 2022 2024 Legal/Policy  
• Review and identify gaps in the existing system of coordination and policies  
• Review/develop a legal basis to enhance coordination and collaboration between 
border agencies  
Procedures  
• Develop Procedures and Memorand a of Understanding (MOU) to help enhance the 
cooperation of border agencies  
Human Resources/Training  
• Underake c apacity building and training for Border agencies officials on a new 
coordinated approach  
Article 9  Movement of Goods Intended for Import under Customs Control  
    B 2022 2024 - 
Article 10  Formalities Connected with Importation, Exportation and Transit  
Article 10.1  Formalities and 
Documentation 
Requirements  C 2022 2024 Policy  
• Support customs to expedite publication and activation of the new draft 
procedures under the modernization program  
Information and Communication Technology  
• Enhance the technological capacity of Customs and border agencies officials to 
ensure full utilisation of the ASYCUDA World system  
Infrastructure  
• Upgrade existing Customs system and infrastructure to implement this provision  
Article 10.2  Acceptance of 
Copies  B 2022 2023 - 
Article 10.3  Use of 
International 
Standards  A - - - 
Article 10.4  Single Window  C 2022 2024 Legal  
• Review/develop relevant laws to facilitate the development of a comprehensive 
national single window  
• Undertake Compliance review  
• Develop Memorand a of Understanding (MOUs) with other agencies to enhance 
cooperation  
Policy  
• Conduct a feasibility study to explore the viability of a national single window 
system  
• Develop a strategy for the implementation of the single window  
Procedures  
• Develop appropriate procedures and processes to facilitate the implementation of 
the single window    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 127 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Human Resources/Training  
• Undertake c apacity building and training for Customs offic ials and border 
agencies on the implementation of a single window system  
• Undertake c apacity building for other government agencies and the private sector 
on the implementation of the single window system  
Information and Communication Technology  
• Review nati onal ICT policies to facilitate the implementation of the single window  
• Enhance and upgrade technological capabilities of border agencies and 
government agencies necessary to implement the single window  
Infrastructure  
• Provide appropriate technology and equ ipment to help implement single window  
Article 10.5  Pre-shipment 
Inspection  A - - - 
Article 10.6  Use of Customs 
Brokers  A - - - 
Article 10.7  Common Border 
Procedures and 
Uniform 
Documentation 
Requirements  A - - - 
Article 10.8  Rejected Goods  A - - - 
Article 10.9  Temporary 
Admission of 
Goods and Inward 
and Outward 
Processing  B 2022 2024 - 
Article 11  Freedom of Transit  
    B 2023 2024 - 
Article 12  Customs Cooperation  
    A - - - 
 
 
 
 WT/ACC/SPEC/TLS/5/Rev.1  
 
- 128 - 
 
  ANNEX 13 
List of goods that are exempted from import duty  
(a) If the goods accompany a person arriving in Timor -Leste from another territory:  
(i) Two hundred (200) cigarettes and two and one half (2.5) liters of excisable beverages 
per person;  
(ii) Goods up to a value of US US$300 of a non -commercial nature that are exclusively for 
the personal use or enjoyment of travelers or  goods intended as gifts, when the nature 
and quantity of the goods indicate that they are not imported for, or intended to be 
imported for, commercial purposes;  
(iii) Goods of a non -commercial nature, other than jewelry, that are exclusively for 
the perso nal use  or enjoyment  of travelers  and that are brought  into Timor -Leste  by 
travelers  in accompanying luggage or carried on or about the travelers ' bodies;  
(iv) Household effects accompanying former residents of Timor -Leste returning to reside in 
Timor -Leste on a permanent basis.  
(b) Imports of the type:  
(i) Exempted under the Vienna Conventions on Diplomatic Relations of 1961 and Consular 
Relations of 1963;  
(ii) Exempted under the Convention on the Privileges and Immunities of the United Nations;  
(iii) Exempted under the Convention on  the Privileges  and Immunities  of the Specialized 
Agencies.  
(c) Goods re -imported in the same condition in which they were exported.  
(d) Goods, other than alcohol or tobacco, imported by registered charitable organizat ions, being 
charitable organizations that have registered under any law of Timor -Leste that has been 
promulgated for that purpose, if the goods are to be used for charitable purposes of humanitarian 
assistance and relief, education or health care.  
(e) Good s for temporary admission, if the importer has provided security for import duty in 
the prescribed manner.  
(f) Goods for consumption by international staff of UNMIT  or members of the Peace Keeping Force 
from contingent countries, if the goods are sold in conformity with prescribed rules of sale.  
(g) Baby formulas that are specially designed for babies under one (1) year of age so that after 
preparation they are consu med in a liquid form and provide the health benefits of human milk  
that would normally be provided to a baby that suckles from its mother.  
(h) Tampons and sanitary napkins.  
(i) Goods not described in previous paragraphs if:  
(i) Goods imported into Timor -Leste other than as personal goods accompanying 
a traveler;  
(ii)  Import duty that would be imposed on the import if not for this paragraph would be 
US$10 or less ; 
(f) Importation, by the State or other public legal persons, of arms and ammunition for the National 
Police of Timor -Leste, the Scientific Police for Criminal Investigation and the Defense Forces of 
Timor -Leste.  
(g) Importation  of goods that are donated, or used, in the production or construction of goods that 
are donated, to the State by foreign  States, by public collective persons of foreign States, or by 
international organizations.    
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 14 
Fees and charges for services rendered  
provided in Customs Code (De cree-Law No. 14/2017 of 5  April  2017 ) 
Article of 
Decree -Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
Article 101  Administrative Penalty for incorrect customs 
declaration resulting in underpayment  Not specified in the Decree -
Law 
Article 136.2  Administrative fine for failing to submit goods  to 
customs  Not specified in the Decree -
Law 
Article 136.3  Administrative fine on the person responsible  for the 
means of transport who does not comply with the 
obligation to present the goods to customs in 
situations of missing goods  Not specified in the Decree -
Law 
Article 136.4  Administrative fine on the person responsible for the 
means of transport, where the number of unloaded 
volumes exceeds the number notified to customs  Not specified in the Decree -
Law 
Article 139.4  Administrative fine on any person removing goods 
from the a reas under customs control before their 
release for free circulation  Not specified in the 
Decree -Law 
Article 145.5  Administrative fine on any person for failing to inform 
Customs on goods of commercial character  Not specified in the 
Decree -Law 
Article 187.1  Fee for temporary importation  For each month or  part 
month, 3% of the full duty  
Article 188.5  Administrative fine for failing to re -export goods 
temporarily imported within required time limit  Not specified in the Decree -
Law 
Article 201.5  Administrative fine for taking goods from warehouse 
before Customs authorization  Not specified in the Decree -
Law 
Article 201.6  Administrative fine for failing to notify Customs of 
exact quantity of goods in warehouse   Not specified in the Decree -
Law 
Article 202.3  Provision of financial guarantee for customs duties 
suspended during warehousing  50% of the duties  Due 20 -
30% of any excise due  
Article 273.2  Fee for clearance of goods where customs formalities 
have not been complied with within required time 
limits, and goods have been stored beyond legal time 
limits  The amount of customs duties  
and other duties owi ed plus a 
fee of 5% of the value  of the 
goods  
Article 315.7  Compensatory interest where the incurrence of the 
debt or liquidation is delayed for reasons attributable 
to the declarant  4% 
Article 320.5  Interest on late payment of duties and charges  For each month or part month 
of arrears, 3% of the total 
debt 
Article 377.1  For the arrival, control and departure of each ship 
performing commercial operations of merchandise or 
passengers.  US$100/ per ship  or 
US$200*/ ship plane 
(*Sunday, holiday, night)  
Article 377.2  For visits aboard, sealing, verifications,  US$50 or US$100* for  
processing of each 
administrative docu ment 
Article 378.1  For arrival, control, and departure of each plane 
performing commercial operations of merchandise or 
passengers.  US$100 / plane  or US$200*   
Article 378.2  For visits aboard, sealing, verification  US$50 /  or US$100*/ 
procession of each 
administrative document  
Article 379.1  For entry and fiscal clearance of merchandise in each 
land transport vehicle of commercial transport  US$25 or US$50* / vehicle at 
a customs post  
US$50  or US$100*/ vehicle at 
other locations  
Article 380.1  Enterin g and clearance of unaccompanied baggage  US$10 or  US$20*  
Article 380.2  Entering and fiscal clearance of automobiles  US$25 or  US$50*  
Article 380.3  Entering and fiscal clearance of bicycles and 
motorcycles  US$15 or  US$30*  
Article 381.1  For each operation or assistance of denaturation, 
coloration, fiscal marking, or destruction of 
merchandise  US$10 or  US$20*  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 130 - 
 
  Article of 
Decree -Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
Article 382.1  For any services at the request of taxpayers, 
involving the displacement of employees outside of 
the Customs facilities  Up to 40 km travelled: US$25  
Up to 100 km travelled: 
US$50  
More than 100 km travelled: 
US$75  
If overnight stay:  US$30  
Article 383  Fee for underpaying if final verification is a duty of 
more than US$50  US$10/ declaration  
Note: Administrative fines or penalties describ es in Article 101, 136, 139, 145, and 188  are not specified in 
the law . Amount to be defined through other regulation.  
 
 
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 131 - 
 
  ANNEX 15 
Action P lan on drafting the Law on Value Added Tax, the Taxes and Duties Act 
(revision), and the Tax Proceedings Code  
In its effort to improve tax collection, the Government of Timor -Leste is in the process of 
drafting/revising three laws, which include: the Taxes and Duties Act (revision), the Tax Proceedings 
Code and the Law on Value Added Tax . 
The timelines for the development and implementation of the laws are as follows:  
i. Revised Taxes and Duties Act :  
Action to be taken  Target f or completion  Status  
• Revisit the revised draft law by the Ministry of Finance  1st half of 2022  In progress  
• Seek opinions, comments and feedback from any 
third party on the revised law as well as public 
consultation and discussion with relevant private 
and public stakeholders  1st half of 2022  In progress  
• Discussion and approval by th e Council of Ministers  2nd half of 2022  Pending  
• Discussion and approval by the National Parliament  1st half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness on the changes and introduction of 
new articles  2nd half of 2023  Pending  
• Effective Implementation  1st half of 2024  Pending  
ii. Tax Proceedings Code:  
Actions to be taken  Target for completion  Status  
• Revisit the draft TPC  by the internal Ministry of 
Finance team  2nd half of 2022  Pending  
• Seek opinions, comments and feedback from any 
third party on the revised law as well as public 
Consultation and discussion with relevant private 
and public stakeholders  2nd half of 2022  Pending  
• Discussion and approval by the Council of Ministers  2nd half of 2022  Pending  
• Discussion and approval by the National Parliament  1st half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness  2nd half of 2023  Pending  
• Effective Implementation  1st half of 2024  Pending  
iii. VAT Law:  
Action to be taken  Target for completion  Status  
• Development of the draft Policy Paper for VAT Law  December 2015  Done 
• Seek opinions, comments and feedback from any 
third party on the revised law as well as public 
consultation and discussion with relevant private 
and public stakeholders  2nd half of 2023  In progress  
• Discussion and approval by the Council of Ministers  2nd half of 2023  Pending  
• Discussion and approval by the National Parliament  1st half of 2024  Pending  
• Promulgation by the President  2nd half of 2024  Pending  
• Public awareness  2nd half of 2024  Pending  
• Effective Implementation  1st half of 2025  Pending  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 132 - 
 
  ANNEX 16 
Action P lan on the Implementation of the WTO Agreement on Technical Barriers to Trade  
Activity/Description  Action to be taken  Timeframe for 
implementation  
Development of national 
standards bodies, including a 
TBT Enquiry Point, and the 
upgrading of national legal 
and regulatory framework s. 1. Establishment of a national standard body (IQTL, IP);  
2. Technical assistance to be obtained from the UNIDO 
and other development partners;  
3. Establishment of a TBT Enquiry Point;  
4. Develop ment of  national policies, strategies, legal and 
regulatory frameworks on TBT -related measures.  2023 
Capacity building  1. Technical assistance to be obtained from UNIDO and 
other development partners;  
2. Training of key officials from the relevant Ministries/ 
Agencies, including: departments under the Ministry of 
Agriculture and Fisheries (MAF), Ministry of Tourism, 
Commerce and Industry (MTCI), Ministry of Health, 
Ministry of Finance, Secretary of State for 
Environment, AIFAESA, IQTL, Customs Autho rity, and 
the private sector;  
3. Assistance to NSBs for participation in international 
standardization work and to consumers to take part in 
standardization activities, including TL's participation at 
the IEC, ISO, OIE, Codex Alimentarius, IPPC, APPC, 
OIML;  
4. Development of product testing capacities (micro -
biological, chemical, textile, leather, electrical 
laboratories) towards international recognition of their 
services for proof of conformity with foreign buyer 
requirements;  
5. Development of metrology (calibrat ion), 
standardization, and accreditation capacities towards 
international recognition of their services for the 
calibration of national product testing equipment.  
6. Possible inclusion of NZL recommendation s on 
approaching specialist regional bodies associate d with 
Standardization and Accreditation (APAC, APMP, 
APLMF, PASC).  2025 
Regional harmonization of 
standards and conformity 
assessment systems  1. Develop ment of draft laws on metrology, standards 
and conformity assessment systems and procedures;  
2. Technical review on the draft laws;  
3. Public consultations;  
4. Approval by the Council of Ministers;  
5. Approval by the National Parliament;  
6. Promulgation by t he President of the Republic;  
7. Public awareness consultations; and  
8. Effective implementation.  2023 
Establishment and upgrading 
of inspection and certification 
schemes and services for the 
assessment of conformity 
against product and system 
standards (including ISO 
9001, ISO 14 001, ISO 
22000) with increased 
emphasis on public -private 
partnerships  1. Develop ment of  specific internal SOP on guidelines for 
inspection and certification schemes;  
2. Develop ment of  a standardized laboratory for 
inspection;  
3. Public awareness consultations, with an emphasis on 
the private sector; and  
4. Effective implementation.  2023 
Development of national 
and/or regional accreditation 
schemes for the accreditation 
of national laborator ies, 
inspection bodies, 
certification bodies, etc.  1. Develop ment of a  Law on National Quality System;  
2. Develop ment of  accreditation criteria;  
3. Develop ment of  quality assurance and quality control 
standard and regulation on goods;  
4. Public awareness consultation  on National Quality 
system Law  
5. Effective Implementation.  2024 WT/ACC/SPEC/TLS/5/Rev.1  
 
- 133 - 
 
  Activity/Description  Action to be taken  Timeframe for 
implementation  
Outreach to  specialist 
regional bodies associated 
with Standardisation and 
Accreditation  1. International Laboratory Accreditation Cooperation 
(ILAC);  
2. Asia Pacific Accreditation Cooperation Incorporated 
(APAC);  
3. International Accreditation Forum (IAF);  
4. Asia Pacific Metrology Programme (APMP);  
5. Asia Pacific Legal Metrology Forum (APLMF);  
6. Pacific Area Standards Congress (PASC).  2025 
Full implementation of the WTO Agreement on Technical Barriers to Trade   1 January 202 6 
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 134 - 
 
  ANNEX 17 
Invasive Species in Timor -Leste  
Invasion of Chromolaena odorata (Siam weed) in agricultural lands, grasslands, land clearing and 
degraded forests is evident in Timor -Leste and is harmful to both crops and animals. Its ability to 
spread rapidly increases the risk of bush fire s. Other identified and potential invasive sp ecies are 
Lantana gorse, Catharanthus roseus, Jatropha gossypifolia, Ziziphus mauritiana and Calotropis 
gigantea.  
The Global Invasive Database lists the following invasive species found in Timor Leste :1 
Chromolaena odorata, Leucaena leucocephala, Thevetia  peruviana, Mimosa diplotricha, Cyprinus 
carpio, Lutjanus kasmira, Gallus gallus, Porphyrio porphyrio, Cervus timorensis russa, and Varanus 
indicus. Studies also provide the habitat, geographical range and degree of invasiveness of these 
species.  
Meanwhile , please see table below on the Annex II of the Decree -Law, which has listed the 
Provisional List of Prohibited Invasive Species identified according to the list of plants and animals 
in the National Biodiversity Strategy and Action Plan, coupled with the invasive species identified in 
the Global Invasive Species Database (GISD) portal document, as follows:  
Provisional  List of Prohibited  Invasive  Species  
Taxonomic Name  English Common Name(s)  
Bufo marinus  Cane Toad  
Duttaphrynus melanostictus  Common Asian Toad  
Cyprinus carpio  Common carp  
Aedes aegypti  Yellow fever mosquito  
Paratrechina longicornis  Crazy ant  
Varanus indicus  Mangrove monitor  
Jatropha gossypifolia  - 
Sida acuta  Common Wireweed  
Lantana camara  - 
Tithonia diversifolia  - 
Parkinsonia sp.  Palo Verde  
Prosopis pallida  Mesquite  
Ziziphus mauritiana  Rhamnaceae  
Chromolaena odorata  Siam Weed  
Mimosa diplotricha  Giant sensitive plant  
Leucaena leucocephala  - 
Thevetia peruviana  Yellow oleander  
 
 
 
1 Invasive Species in Timor -Leste. The Global Invasive Species Database:  
http://issg.org/database/species/search.asp?st=sss&sn=&rn=Timor -
Leste%20(East%20Timor)&ri=18888&hci= -1&ei= -1&fr=1&sts=&lang=EN   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 135 - ANNEX 18 
Action Plan for the Implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures  
Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
Strategy 1  
 
Establish a centralised food control 
system and regulatory framework:  
 
1. Establish new or strengthen 
existing ministries with food related 
responsibilit ies; 
 
2. Combine and/or centralize food 
control responsibilities between MAF, 
MoH, MTCI and AIFAESA;  
 
3. Clarify responsibilities for food 
control across the Government; and  
 
4. Establish new or  strengthen 
existing infrastructure  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1.1. Institutionalization of food control  
- Establish a functional Food Control System to be 
responsible for and coordinate food control activities in 
the country , with capacity to undertake the following to 
international best practice:  
 
Risk assessment – sanitary and phytosanitary  (SPS) ; 
Quarantine and biosecurity inspection and certification;  
Sample collection and analysis by an accredited, newly 
established modern national food laboratory;  
Develop SPS control measures;  
Develop SPS policy and  legislation;  
Establish relevant and appropriate enforcement, 
monitoring and evaluation activities;  
Develop scientific and technical expertise and training 
capabilities as a critical priority.  
 
- Two options depending on political appetite:  
 
1. Establish a new single Food Control Agency Model 
within one ministry; OR  
 
2. Establish an Integrated Multi Agency Food Control 
Model using existing ministries – MoH, MAF, MTCI, 
AIFAESA.  
 
- Clarify each ministry 's responsibility under the Multi-
Agency Model (e.g. MoH , MAF, MTCI, AIFAESA) and 
remove food control responsibilities and activities from 
other current ministries (MoF, MoE, etc) to avoid 
confusion and foster collaboration.  
 
- Promote collaboration and cooperation between critical 
Directorates e.g. Quarantine/ Biosecurity and Veterinary. 
Appoint Directors with technical background and 
expertise. Mandate collaboration and share resources, 
training activities and upskilling.  
 
- Establish a National Food Control Management Board or 
Committee under an appointed expe rienced Chair, - New nationally coordinated Food 
Control System established and 
operational based on single or 
multi-agency models supported by 
appropriate legislation  
 
 
 
 
 
 
 
 
 
 
 
 
 
Single or Integrated Multi -Agency 
Food Control Model established and 
operational with clear 
responsibilities institutionalized by 
legislation  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- National Food Control 
Management Board/Committee 2023 – 2025  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023 – 2024  
 
 
 
 
 
 
2023 – 2024  
 
 
 
 
 
 
 
 
 
 
 
 
2023 – 2024   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 136 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
Establish a National Mechanism for 
management of all facets of food 
control and dissemination of 
information  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
-Technical Committees  
 
 
 
 
 
 
 
 
 
 
 
- Food Safety Laboratory  
 
 
 
 
 
 
 
 
 
 
 
 
 
 assisted by a small Secretariat  to coordinate and oversee 
the implementation of all food control activities across 
the Government.  
 
The National Management Board or Committee should be 
the national mechanism to publicise and notify all 
relevant organisations, trade partners and foreign 
governments of all relevant information on adopted or 
proposed SPS measures, quarantine and inspection 
procedures, pesticide tolerances and food safety 
standards.  
 
This mechanism should include a National Enqu iry Point 
for WTO SPS Measures, Codex Office, ASEAN, OIE and 
IPPC management.  
 
- Establish National Technical Committees responsible to 
the National Food Control Management Board to 
coordinate and oversee the development and 
implementation of activities fo r SPS measures , including 
the development of relevant legislation e.g.:  
 
Food Safety Committee (animal health and disease, 
human health)  
Plant Pest and Disease Committee  
Enforcement, Monitoring and Evaluation Committee.  
 
- Establish a National Food Safety Laboratory:  
 
In short term, combine existing food safety (MoH), 
quarantine and biosecurity (MAF), and plant safety (MAF) 
laboratories in a new facility as start of new National 
Food Laboratory;  
 
In short term, ensure existing laboratory capacity is  
maintained whilst building new capacity for analysis of 
plant, animal and human health;  
 
Conduct training workshops for laboratory staff using 
external providers – foreign governments (e.g. , EU, US, 
Australia), NGOs, World Bank, WHO/FAO, ASEAN, APEC;  
 
In medium term, establish new National Food Reference 
Laboratory in new dedicated facility;  
 established. Chair, Secretariat and 
membership in place and regular 
meetings operational and 
documented;   
 
-Reports of the meetings prepared 
and distributed;  
 
-Regular reports on the 
achievement of established 
programme targets.  
 
 
 
 
 
- National Technical Committees 
established and operational;  
 
- Supporting legislation approved 
and in place;  
 
- Food, plant and animal safety 
measures developed and in place.  
 
- National plan for financial 
feasibility  
 
 
 
 
 
 
 
 
- Skilled staff with education in 
applied sciences chemistry, 
microbiology and biology;  
 
- Records and reports of training on 
laboratory quality assurance and on 
analytical methods;  
 
- Quality assurance documentation 
complete.   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023 – 2024  
  
 
2024 – 2025  
 
 
 
 
 
2023 
 
 
2023 
 
 
 
 
 
 
2023 – 2024  
 
 
 
2023 – 2025  
 
 
 
2024 – 2025   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 137 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- Quarantine and Inspection facilities  
 
 
 
 
 
- Staff training centres  
 
 
 
 
 
 
Develop standards and codes of good 
practice (or adopt appropriate 
international) across the agri -food 
chain  
 
 
Food Control Law  Acquire sufficient infrastructure, equipment and trained 
staff to allow new laboratory to facilitate all country 
requirements for human food, plant and animal health 
and safety, and work towards international best practice s 
and accreditation – internal (Government) and external 
funding (Foreign governments, NGOs, World Bank);  
 
Provide specialized, hands -on training on microbiological 
and chemical parameters according t o the specific needs 
of the laboratory;  
 
Achieve ISO 17025 accreditation for microbiology and 
chemical parameters;  
 
Provide services to private sector.  
 
- Establish dedicated Quarantine and Inspection and 
Veterinary Services facilities;  
 
- Co-locate Quaran tine and Inspection Directorate with 
Veterinary Services Directorate;  
 
- Establish new facilities or adequately provide assistance 
and support for existing staff training facilities using a 
combination of the Government and external providers 
funding and r esources;   
Specialised training provided on 
microbiological and chemical 
analysis  
 
 
- ISO 17025 accreditation for 
selected chemical and 
microbiological parameters;  
 
- Participation in  inter-laboratory 
comparisons;  
 
- Laboratory reports;  
 
- Feedback from "users " of 
laboratory services.  
 
Adequately staffed and a ppropriate 
dedicated space and facilities 
allocated and operational for 
Quarantine and Inspection and 
Veterinary Services.   
 
Appropriate facilities established 
and given ongoing support.   
 
2023 – 2024  
 
 
 
 
2023 – 2026  
 
 
 
 
 
 
 
 
2023 – 2024  
 
 
2023 – 2024 
 
 
 
 
 
 
2023 – 2024  
1.2. Develop new or strengthen existing appropriate, enforceable legislation to support SPS measures, including a Food Standards C ode 
– cover ing food safety, plant pests and disease, and animal health, quarantine, inspection and certification, enforcement, monitoring 
and evaluation . 
-Review current legal framework and formulate an 
overarching food control framework under direction of 
the National Food Control Board and Technical 
Committees to discuss, adopt and make 
recommendations to approve, plant, animal health and 
food safety standards;  
 
-Develop an overarching general Food Control Law;  
 
 
- Develop a Food Standards Code (similar to AN ZFSC) 
containing all regulations on priority areas for the 
Government : food additives, contaminants and natural 
toxicants, Maximum Residue Limits ( MRLs) for - Food Control Framework 
developed to support nationally 
coordinated Food Control System . 
 
 
 
- Overarching Food Control Law 
adopted.  
 
- New Food Standards Code with 
regulations on priority areas:  food 
additives, contaminants and natural 
toxicants, MRLs for agricultural and 
veterinary chemicals (agro -food 2023 – 2024  
 
 
 
 
 
2023 – 2024  
 
 
 
2023 – 2025  
 
 
  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 138 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
agricultural and veterinary chemicals (agro -food inputs 
such as pesticides), food labelling, special standards (e.g. 
infant formula, GM foods, etc.);  
 
 
- Use established Technical Committees (see above) to 
discuss, develop and obtain Government's approval of 
plant, animal health and food safety standards.  
 
- Develop (or preferably adopt existing internationally 
available) manuals on:  
- Good Hygiene Practices;  
- Good Agriculture Practices;  
- Good Animal Husbandry Practices;  
- Good Aquaculture Practices;  
- Good Manufacturing Practices;  
- HACCP.  
 
-Provide training workshop s to manual users.  inputs such as pesticides), food 
labelling, special food standards 
(e.g. infant formula, GM foods, 
etc.). 
 
Technical committees established 
and operational covering plant, 
animal health a nd food safety . 
 
Manuals adopted and distributed to 
users.  
 
 
 
 
 
 
 
Training conducted.   
 
 
 
 
 
2023 – 2024  
 
 
 
2023 – 2024  
 
 
 
 
 
 
 
2023 – 2024  
Strategy 2  
 
Develop scientific and technical 
capacity for risk analysis (risk 
assessment, risk management, risk 
communication) and standards 
development  
 
 2.1. Establish a mechanism to provide scientific and technical training for staff  of the Government of Timor -Leste  to cover all aspects of 
SPS measures work  
- Establish a new authority or appoint an existing  
ministry or authority responsible for ensuring that 
appropriate Government personnel are properly trained 
in all aspects of food control along the whole agri -food 
chain (risk assessment, quarantine, inspe ction and 
certification, monitoring and surveillance, laboratory 
analysis, etc.).  
 
-Establish staff training centers (see above under 
Establish new or strengthen existing infrastructure);  
 
-Identify and utilise appropriate external training 
providers e.g. foreign governments and NGOs (UNDP, 
WBIFC, FAO, WHO).  Ministry or authority appointed with 
responsibility for food control 
system training of Government 
staff;  
 
 
 
 
Staff training centers established 
and operational;  
 
Resources identified and external 
providers engaged.  2023 – 2024  
 
 
 
 
 
 
 
2023 – 2025  
 
 
2023 – 2024  
2.2. Participation of Timor Leste in international fora supported by adequate resources  
-Accession of Timor -Leste to Codex Alimentarius 
Commission. Ensure attendance and establish National 
Codex Contact Point reporting to National Board (Note: 
Codex, WTO, SPS EP, OIE, IPPC and ASEAN contact 
points co -located);  
 - Member of Codex2  
 
 
 
 
 2023  
 
 
 
 
 
 
2 Process had already begun.   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 139 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
-Accession of Timor -Leste to IPPC and active 
partic ipation;  
 
-Become member of ASEAN and the World Trade 
Organisation and ensure appropriate resources for active 
participation;  
 
-Promote the participation of Timor -Leste in international 
committees (CAC, IPPC, OIE, and INFOSAN).  
 - Member of IPPC3  
 
 
- Member of ASEAN, WTO4  
 
 
 
- Documentation of Timor -Leste 's 
participation in international 
committees  2023  
 
 
2023  
 
 
 
2024 – 2025 
Develop scientific and technical 
capacity for risk analysis (risk 
assessment, risk management, risk 
communication) and standards 
development  2.3. Development of a Co -located National SPS , Enquiry Point, Codex, ASEAN, OIE and IPPC  Contact Points  
- Operationalization of a co -located SPS, Codex, OIE, 
IPPC enquiry point to meet the obligations under the 
WTO SPS Agreement;  
 
 
 
 
 
 
- Train personnel on Codex Risk Analysis principles, OIE 
and IPPC procedures and the SPS/TBT agreements;  
 
 
 
 
 
-Develop SoPs for handling national and international 
enquiries on technical regulations, standards and 
certification schemes;  
 
-Disseminate information to value chain participants on 
WTO SPS notifications, Codex standards, OIE and IPPC 
matters.  - SPS Enq uiry Point developed;  
- Codex, OIE, IPPC and ASEAN 
Enquiry Points developed;  
 
- Co-locate all enquiry points, if 
possible, with a single Secretariat 
and responsible to the National 
Management Board;  
  
- Personnel trained in risk analysis, 
SPS/TBT, Codex p rocedures and 
standards;  
 
- Training records of skilled 
personnel.  
 
- SPS/TBT SOP 's for handling 
national/international enquiries 
developed  
 
- Factsheets, brochures, and guides 
developed and disseminated to 
value chain actors  2023 – 2024  
 
 
 
 
 
 
 
 
2023 – 2024  
 
 
 
 
 
 
2023 – 2024  
 
 
 
 
 
2023 – 2024  
 
Strategy 3  
 
Conduct SPS data collection and 
undertake risk assessments  to 
prevent risks across the entire food 
chain  3.1. Mechanisms to prevent risks across the entire food chain – SPS issues  
- Collect relevant data on SPS risks across the entire food 
chain, e.g.:  
Plant pests and diseases  
Animal health  
Food Safety   - Data collection operational for 
both S PS areas for plant pests and 
diseases, and animal diseases  
 
 2023 – 2025  
 
 
 
 
 
3 Already an observer.  
4 Accession process already begun.   
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 140 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
Utilise data already collected on 
Phytosanitary issues, and collaborate 
with proposed initiatives and action 
plans already planned by various 
foreign governments and NGOs e.g. 
Australian DAFF and WB IFC  
 
 
 
 
 
 
Phytosanitary Risks  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
- Using collected and verified  data, conduct risk 
assessments to protect plant, animal and human health;  
 
- In the case of plant pests and diseases, identify the 
pests or diseases that may enter  into the country, their 
mode of establishment or spread, and th e potential 
biological and economic consequences.  Evaluate the 
likelihood of entry, and of establishment or spread of 
such pests or diseases.   
 
- For phytosanitary measures, immediate priority actions 
should be:  
1. For imports, to access and collaborate with any 
existing plans for plant safety being considered by the 
Government. The short -to-medium term priorities should 
be to undertake the more than 500 IRAs that are needed 
to assess the risk posed by imports into Timor -Leste, and 
this work w ill require:  
• Compar ing lists of pests and diseases in 
exporting countries with those present in Timor -
Leste;  
• Determin ing which pests are associated with the 
imported product;  
• Determin ing which pests pose an unacceptable 
risk; 
• Manag ing the risks by imposin g conditions, 
treatments, certification, and inspection of 
imported products to ensur e compliance, 
refusing trade and post -entry quarantine risk 
mitigation measures;  
• Strengthen ing inspection processes and creat ing 
a central database for the categorization of 
businesses and foods based on risk.   
2. For exports, to undertake work to facilitate exports of 
plant products by:  
• Participating in the IRA of importing countries by 
providing lists of pests present in Timor -Leste,  
• Negotiat ing import conditions with importing 
countries,  
• Ensur ing that the conditions for export to the 
importing countries are met, and develop ing 
appropriate certification for the 11 plant product 
exports (Arabica and Robusta coffee, Candle 
Nut, Co conut, Tamarind, Mung Bean, Peanut, - Data verified and used to conduct 
risk assessments  
 
- Plant pests and diseases identified 
and catalogued  
 
- Conse quences evaluated  
 
 
 
 
 
- Collaborations negotiated  
 
- IRAS started  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- Exported food risks work 
operationalised;  
 
- Lists of pests in Timor -Leste 
provided to trading partners to 
expedite importing country IRAS;  
 
- Negotiations taking place;  
  
2023 – 2025 
 
 
2023 – 2025 
 
 
2023 – 2025 
 
 
 
 
 
2023 – 2025 
 
2024 
 
 
 
2023 – 2025 
 
 
2023 – 2025 
 
2023 – 2025 
 
2023 – 2025 
 
 
 
 
2023 – 2025 
 
 
 
 
2023 – 2025 
 
 
2023 
 
 
 
2023 
  
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- 141 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sanitary Risks  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Corn, Cloves, Vanilla and Sandal Wood) to the 
23 countries where Timor -Leste exports these 
commodities.   
 
• Increas ing technical capacity needed to assess 
the risks associated with export trade including : 
 
1) Producing a list  of pests and diseases present in 
Timor -Leste and deciding which risks need to be 
managed,  
2) Developing appropriate measures to manage 
these risks,  
3) Confirming that risk management measures are 
effectively preventing the entry of viable 
organisms (e.g. insp ect imports and identify 
organisms intercepted), and  
4) Participat ing in the negotiation of the conditions 
imposed on exported products by importing 
trade partners.  
 
- For the sanitary measures to work, the action plan 
should be to access and collaborate wit h any existing 
plans for food safety being considered by the 
Government, for example between AIFAESA and MoH, 
and the SoW prepared by USAID/TAMU/Avansa, together 
with a comparison with food safety systems already 
established internationally in other countr ies (Indonesia, 
China, Australia), FAO/WHO and Codex.  
 
- The short -to-medium term priorities for food safety 
should be:  
• Begin ning the comprehensive collection of 
databases on food composition and food 
consumption using the data already collected on 
foods grown in the country, imported into and 
exported from Timor -Leste by Quarantine and 
Biosecurity and Veterinary Directorates and an y 
other relevant information.  
• Assess ing the suitability for Timor -Leste of 
Indonesian (or Chinese , or both given these 
countries are the biggest trading partners) and 
Codex standards for Maximum Levels (MLs) for 
food additives, chemical contaminants, alle rgens 
and biotoxins, MRLs for pesticides and - Export conditions of trading 
partners met and appropriate 
certifications operational.  
 
Technical capacity building 
initiatives established and ongoing;  
 
List of plant pests and disease 
developed and utilised;  
 
Measures developed;  
 
Risk measures working and 
effective;  
 
 
Participation in export trade 
negotiations ongoing;  
 
 
 
 
 
 
 
 
 
 
 
 
Data collection on food composition 
and consumption started and 
ongoing;  
 
 
 
 
 
Food safety standards of exporting 
countries assessed and compared 
with Codex st andards;  
 
 
 
 2023 
 
 
 
2023 
 
 
2023-2024 
 
 
2023 – 2025 
 
2023 - 2024 
 
 
 
2023 – 2025 
 
 
 
2023 – 2025 
 
 
 
 
 
 
 
 
 
 
2023 – 2024  
 
 
 
 
 
 
2023 – 2026 
 
 
 
 
 
  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 142 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 veterinary drugs, and guidance values for 
common food -borne pathogens.  
• Undertak ing a risk assessment of each 
food/chemical/biotoxin combination by using 
MLs and MRLs from trading partners (Indonesia, 
China, Aus tralia or us ing Codex levels), ADIs 
and PTDIs or PTWIs from JECFA, together with 
estimates of exposure (for an average adult of 
60-70kg and for a child of 20kg) so that the risk 
can be characterized. For example, there are 
349 imported food products and hu ndreds of 
contaminants, food additives and pesticides that 
will each need a separate risk assessment 
calculation.  
• Assist ing with the development of relevant and 
appropriate food safety legislation, including the 
development of a Food Standards Code (Food 
Laws) for Timor -Leste along similar lines as the 
Australian New Zealand Food Standards Code.  
• Assess ing the adequacy of food labelling  for 
food imported into and exported from Timor -
Leste. Compar ing and contrast ing with labelling 
standards from Codex and ex porting countries.  
 
• Assess ing capacity within G overnment  and UNTL 
for food safety risk assessment, including 
chemistry, biology and risk assessment 
(toxicology, microbiology) and exposure 
assessment.  
• Making recommendations to the Government  
based on capaci ty assessment . 
• Develop ing or recommend ing appropriate 
guidance documents , training manuals and 
materials for risk analysis capacity building.  
• Develop ing "train the trainers " SPS modules to 
target food chain personnel in food safety, GHP, 
GAqP, GAhP, GMP and HACCP  
 
 
 
 
 
 
 
  
Risk assessments underway and 
ongoing;  
 
 
 
 
 
 
 
 
 
 
 
Food legislation is developed and 
operationalised. Food Standards 
Code established;  
 
 
Adequacy of food labelling assessed 
and compared with Codex and 
exporting countries. Remedial 
enforcement action taken where 
necessary;  
Capacity within Government and 
other sources assessed;   
 
 
 
Recommendations developed and 
submitted to the Government;  
 
Guidance documents and training 
manuals developed and in use;  
 
Training materials developed and 
delivered to target groups using 
"train the trainers " modules on SPS  
topics;  
Records on training;  
Baseline and endline surveys before 
and after trainings and 
enforcement;   
2023 – 2024 
 
 
 
 
 
 
 
 
 
 
 
2023 – 2024  
 
 
 
 
2023 – 2026  
 
 
 
 
2023 – 2025 
 
 
 
 
2023 – 2025 
 
 
 
2023 – 2025 
 
 
2023 – 2026 
 
 
 
 
 
 
 
 
  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 143 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
 
 
 
 
Identify SPS measures 
commensurate with risk assessments  
 
 
 
Establish appropriate ALOPs  
 
 
 
 
 
 
 
 
Develop Monitoring and Surveillance 
Systems  
 
 
Enforce SPS Measures   
  
- Based on the above risk assessments work, identify ing 
SPS measures for each risk that will mitigate it according 
to scientific evidence, either obtained from s cientific 
literature or developed in -country.  
 
- For each SPS measure, establish ing an Appropriate 
Level of Sanitary or Phytosanitary Protection, or ALOP , 
based on the risk and available measures to mitigate it, 
ensuring that such ALOPs are justifiable by the risk 
assessment and are consistently applied so as to avoid 
arbitrary or unjustifiable distinctions in the level of 
protection, if such distinctions would result in a disguised 
restriction to international trade.  
 
- Establish ing monitoring and evaluation systems for the 
assessment of introduced food control measures across 
the entire food chain;  
 
- Enforc ing SPS measures based on risk assessments in 
line with international best practices.  Records from food safety, GHP, 
GAqP, GAhP, GMP and H ACCP 
activities;  
Chemical free food products;  
 
SPS measures developed , 
operationalised and enforced;  
 
 
 
ALOPs established;  
Adoption and enforcement of 
integrated plant pest and diseases, 
animal disease and food safety 
management strategies;  
 
 
 
 
SPS measure s monitored and 
evaluated;  
 
 
SPS measures enforced;  
  
 
 
2023 – 2026  
 
 
 
 
2023 – 2027 
 
 
 
 
 
 
 
 
2023 – 2027 
 
 
 
2023 – 2027 
 
Strategy 4  
Food-borne illness surveillance and 
food safety response systems  
 4.1. Develop food -borne illness surveillance and response systems  
- Strengthen ing food-borne illness surveillance and 
emergency response activities;  
 
 
- Develop ing procedures to evaluate and track food -
borne illnesses outbreaks;  
- Training Health Officers for data collection, information 
and reporting on food -borne illnesses  
 
- Develop ing a national network for collecting, collating, 
reporting, and disseminating data to the public  
 
- Estimat ing the burden of food -borne illnesses in Timor -
Leste.  - Food-borne disease surveillance 
documentation and surveys  
developed ;  
 
- SOPs adopted;  
 
- Training records;  
- Collected data;  
 
- Evaluation reports/audits;  
- Monitoring reports;  
 
- Disease surveillance reports.  2023 – 2025 
 
 
 
2023 – 2024 
 
2023 – 2024 
 
 
2023 – 2025 
 
 
2023 – 2025 
Full implementation of the SPS Agreement  1 January 202 8 
 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 19 
Action Plan for the Implementation of the WTO TRIPS Agreement   
Activities  Actions to be taken  Timeframe  
Signing of the MoU between the 
Government of Timor -Leste and the 
World Intellectual Property 
Organization (WIPO) to undertake 
their assistance in developing an IP 
regime and to prepare the ground for 
the national IP strategy development 
process  1. Technical validation of the MoU;  
2. Signing of the MoU.  November 
2021 
Formulation and implementation of 
National IP Strategy  1. With the Assistance of WIPO, Timor -Leste will 
conduct its groundwork for the national IP 
strategy development process; and  
2. Conduct stakeholders ' meetings and identify 
the necessary IP regime to ensure its 
compliance with the WTO TRIPS Agreement.  As soon a s 
the MoU is 
signed  
Establishment of a National IP Office  1. Designation of an IP Focal Point in Timor -
Leste; and  
2. Provision of  the necessary arrangement s to 
build a National IP Office.  
3. Preparation of related IP laws with the 
technical assistance from WIPO an d other 
Development Partners.  2022 
Development of Law on Industrial 
Property (Marks; Trade Name and Act 
of Unfair Competition; Patents; Utility 
models; Geographical Indications; 
Industrial designs; Layout Design of 
Integrated Circuits; Protection of 
Undisclosed Information; and Trade 
Secrets)  1. Creation of a taskforce team compose of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Counc il of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulgation;  
8. Public awareness consultations; and  
9. Effective implementation.  2022 - 2023 
Capacity Building  1. Training of personnel, including customs 
officials, police officers, and other officials 
responsible for area s related to Intellectual 
Property;  
2. Dissemination and training on laws related to 
Intellectual Property;  
3. Training of personnel, including customs 
officials, police officers, and other officials 
respo nsible for protecting registered 
trademark database;  
4. Creation of a registered trademark database.  2022 – 2023 
Ratification of WIPO Agreements  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stak eholders meetings;  
3. Public consultations;  
4. Approval at the Council of Ministers;  
5. Ratification of WIPO Agreements;  
6. Public awareness consultations; and  
7. Effective implementation.  2024 
Development of Law on Copyright and 
Related Rights  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulgation;  
8. Public awareness consultations; and  
9. Effective implementation  2025 WT/ACC/SPEC/TLS/5/Rev.1  
 
- 145 - 
 
  Activities  Actions to be taken  Timeframe  
Development of Law on Layout Design 
of Integrated Circuits  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulgation;  
8. Public awareness consultations; and  
9. Effective implementation.  2026 
Development of Law on Plant Variety 
Protection  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulga tion; 
8. Public awareness consultations; and  
9. Effective implementation.  2026 
Signing of the MoU between the 
Government of Timor -Leste and the 
World Intellectual Property 
Organization (WIPO) to undertake 
their assistance in developing an IP 
regime and to prepa re the ground for 
the national IP strategy development 
process  3. Technical validation of the MoU;  
4. Signing of the MoU.  November 
2021 
Formulation and implementation of 
National IP Strategy  3. With the Assistance of WIPO, Timor -Leste will 
conduct its groundwork  for the national IP 
strategy development process; and  
4. Conduct stakeholders ' meetings and identify 
the necessary IP regime to ensure its 
compliance with the WTO TRIPS Agreement.  2025-2026 
Establishment of a National IP Office  4. Designation of an IP Focal Point in Timor -
Leste; and  
5. Provide the necessary arrangement to build a 
National IP Office.  
6. Preparation of related IP laws with the 
technical assistance from WIPO and other 
Development Partners.  2022 
Development of Law on Industrial 
Property (Marks, Trade Name and Act 
of Unfair Competition)  10. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
11. Conduct stakeholders meetings;  
12. Develop the draft laws;  
13. Public consultations;  
14. Approval at the Council of Ministers;  
15. Approval at the National Parliament;  
16. The President of the Republic 's promulgation;  
17. Public awareness consultations; and  
18. Effective implementation.  2022 - 2023 
Development of Law on Patents, Utility 
Models and Industrial Designs  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulgation;  
8. Public awareness consultations; and  
9. Effective implementation.  2022 - 2023 WT/ACC/SPEC/TLS/5/Rev.1  
 
- 146 - 
 
  Activities  Actions to be taken  Timeframe  
Development of Law on Geographical 
Indication s 1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulgation;  
8. Public awareness consultations; and  
9. Effective implementation  2022 - 2023 
Capacity Building  5. Training of personnel, including customs 
officials, police officers, and other officials 
responsible for protecting registered 
trademarks;  
6. Creation of a registered trademark database.  2023 
Ratification of WIPO Agreements  8. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
9. Conduc t stakeholders meetings;  
10. Public consultations;  
11. Approval at the Council of Ministers;  
12. Ratification of WIPO Agreements;  
13. Public awareness consultations; and  
14. Effective implementation.  2024 
Development of Law on Copyright and 
Related Rights  10. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
11. Conduct stakeholders meetings;  
12. Develop the draft laws;  
13. Public consultations;  
14. Approval at the Council of Ministers;  
15. Approval at the National Parliament;  
16. The President of the Republic 's promulgation;  
17. Public awareness consultations; and  
18. Effective implementation  2025 
Development of Law on Layout Design 
of Integrated Circuits  10. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
11. Conduct stakeholders meetings;  
12. Develop the draft laws;  
13. Public consultations;  
14. Approval at the Council of Ministers;  
15. Approval at the National Parliament;  
16. The President of the Republic 's promulgation;  
17. Public awareness consultations; and  
18. Effective implementation.  2026 
Development of Law on the Protection 
of Undisclosed Information and Trade 
Secret  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings;  
3. Develop the draft laws;  
4. Public consultations;  
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament;  
7. The President of the Republic 's promulgation;  
8. Public awareness consultations; and  
9. Effective implementation.  2026 WT/ACC/SPEC/TLS/5/Rev.1  
 
- 147 - 
 
  Activities  Actions to be taken  Timeframe  
Development of Law on Plant Variety 
Protection  10. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
11. Conduct stakeholders meetings;  
12. Develop the draft laws;  
13. Public consultations;  
14. Approval at the Council of Ministers;  
15. Approval at the National Parliament;  
16. The President of the Republic 's promulgation;  
17. Public awareness consultations; and  
18. Effective implementation.  2026 
Full implementation of the TRIPS Agreement  1 January 
2027 
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 20 
Business vehicles available under Law No. 4/2004 of  21 April 2004 on 
Commercial  Companies  
(a) Permanent Representation (Branch) of a Foreign Company  
A company incorporated in another country carrying on business in Timor -Leste mu st register as 
a permanent representation (branch) of the foreign company (Article 3(1) of Law No. 4/2004). 
It must appoint one or more representatives, one of them being a Timorese national or a foreigner 
holding a valid residence permit in Timor -Leste. T he permanent representation is managed by 
the representative(s)  empowered  by means  of a power  of attorney  issued  by the foreign  parent 
company. The permanent representation does not have a statutory share capital, but the foreign 
parent company must allocate working capital to the local branch (Article 3(2) of Law No. 2004/04 
and Article 26 of Decree -Law No. 35/2012). The filing for registration must include the documents 
set out in Decree -Law No. 35/2012, including proof of incorporation of the forei gn parent company 
in the country of origin (e.g.  certificate of registration),  company  by-laws, resolution  by the relevant 
corporate body of the foreign company on the registration of a per manent representation in 
Timor -Leste, appointment of the local repr esentative(s), allocation of capital, a power of attorney 
granting management powers to the representative(s) of the permanent representation, and a map 
depicting the location of the registered offices in Timor -Leste. All documents issued abroad should 
be translated into one of the official languages of Timor -Leste (Portuguese or Tetum) and certified 
by the Timor -Leste diplomatic representation accredited to the country of origin. Timor -Leste law 
provides for several types of companies, but the most common are Limited Liability Companies by 
Quotas and Joint Stock Companies.  
(b) Sole Trader  
A foreign natural person may also carry o ut business in Timor -Leste without need ing to incorporat e 
a company or register a branch of a foreign company by registering hims elf as a Sole Trader. Article 
33 of Decree -Law No. 7/2006 and Article 24 of Decree -Law No. 35/2012 set out the  documents that 
must accompany the filing of registration. A Sole Trader must trade using his own name, whether 
in full or abbreviated, followed b y the abbreviation "ENIN. " A Sole Trader is not permitted to adopt 
any other trading name (Article 42 of Decree -Law No. 35/2012). As previously mentioned, a business 
licence or an Authorization to Exercise Activity must be obtained by the Sole Trader depending on 
whether the activity he wishes to carry out is deemed a low risk or high -risk activity under Decree -
Law No. 35/2012. Also, the Sole Trader must obtain a visa to legally enter into and stay in Timor -
Leste (please refer to Measures Affecting Mov ement of Natural Persons).  
(c) General Partn ership  
A foreign natural person or a foreign legal person may enter a General Partnership with one or more 
partners to carry o ut business to supply services in Timor -Leste.  Chapter II, Articles 160 to 176 of 
Law No. 4/2004 (Law on Commercial Companies), sets out the rules on General Partnerships.  
The principal consequence of doing business as a General Partnership is that each partner is fully 
liable, jointly and severally, for the obligations of the partnership.  General Partnerships can be 
established by two or more partners who may be natural persons or legal persons. The partners 
may contribute with capital or work (Article 161.1), but the latter is not counted towards the share 
capital amount (Article 163.1). The contributions of capital may be paid within 5 years 
(Article  161.2). Unless otherwise specified in the Articles of Association, working partners do not 
share in losses (Article 163.2), but the Articles of Association should specify the value assigned t o 
their contribution in the form of work for the purpose of profit distribution (Article 162.1.(b).  
A partnership must trade either under a corporate name comprising all of the names of the partners 
or under the name of one of them followed by the words "e Companhia " (Article 160.5 of Law 
No. 4/2004). All partners of a General Partnership are Directors of the partnership (Article 168.1 of 
Law No. 4/2004). At least one Director must reside in Timor -Leste (Article 61 of Law No. 4/2004), 
meaning that he or sh e must be a Timorese national or a foreigner holding a valid residence permit.  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 149 - 
 
  (d) Limited Partnership  
A foreign natural person or a foreign legal person could form a Limited Partnership with one or more 
partners to supply services in Timor -Leste. Chapter III,  Articles 177 to 184 of Law No.  4/2004 (Law 
on Commercial Companies), sets out the rules on Limited Partnerships. The principal feature of 
a Limited Partnership is that the partnership may include "limited or silent partners " whose liability 
is limited to the extent of their capital contribution, and "general partners ", whose liability is the 
same as under a General Partnership (Article  178.2).  
Limited Partnerships can be established by two or more partners who may be natural p ersons or 
legal persons (Article 178.3 allows companies to be partners). The Articles of Association must set 
out the names of the general partners and of the limited/silent partners (Article 179(1)), and as well 
specify if the partnership is a "Simple Lim ited Partnership " or a "Limited Partnership by Shares " 
(Article 179.2). The rules applicable to General Partnerships apply to Simple Limited Partnerships 
(Article 180.1). The rules applicable to Joint Stock Companies apply to Limited Partnership by Shares 
(Article 180.2). A Limited Partnership must trade under a corporate name composed of one or more 
of the general partners ' names followed by the words "em Comandita, & Companhia, em Comandita 
por Acções " or "& Comandita por Acções " (Article 177.2).  
(e) Limited Liability Company  
Limited Liability Companies have their capital represented by "quotas, " which are an immaterial form 
of holding equity representing a given percentage of the capital. A foreign natural person or a foreign 
legal person may incorporate  a Limited Liability Company. It may own all (in which case they are 
called Single Quota  holder Limited Liability Company), or a portion of the capital in the company. 
Certain laws relating to specific business activities may prescribe a minimum or maximum  foreign 
(or Timorese) shareholding. For instance, Ar ticle 9.1 (g) of Decree -Law No.  1/2012 of 
1 February  2012 (on Downstream Petroleum Activities) requires that companies wishing to obtain 
a Downstream Activities Licen ce must have at least 5% Timorese sha reholding.  
Chapter IV of Law No. 4/2004, comprising Articles 185 to 218, sets out the rules relating to Limited 
Liability Companies. The principal features of a Limited Liability Company are the following:  
1. The company cannot have more than 30 quota  holders  or less than 2 quota  holders (in 
case of a company with only 1 quota  holder, it is called a Single Quota  holder Limited 
Liability Company); in order to increase the number of  quota  holders above 30 would 
require that the company be converted into a Joint Stock  Company (Article  187).  
2. The capital cannot be less than US$ 5,000 or more than US$ 500,000. The capital can 
only be increased above US$ 500,000 by transforming the company into a Joint Stock 
Company (Article 188).  The company 's capital is not divided by shares (as is the case 
of joint stock companies); instead, the quota  holders hold an immaterial percentage of 
the capital in the company (in Portuguese, "quota "). 
3. Payment of up to 50% of the nominal value of the cap ital contributions to be made in 
cash may be deferred for a maximum  period of 3 years from the date of the  company 's 
incorporation, provided, however, the minimum capital required by law ( US$5,000) is 
fully paid upon incorporation (Article 190).  
4. Quota hold ers are jointly and severally liable to the company for the payment of 
the entire company 's capital. In the event that any quota holder fails to contribute its 
participating interest , the other quota holders are liable to contribute that amount to 
the comp any in proportion to their quotas (Article 191).  
5. After the capital has been paid the liability of quota holders is limited to the amount of 
their quota (Article 191).  WT/ACC/SPEC/TLS/5/Rev.1  
 
- 150 - 
 
  6. The mandatory corporate bodies are (i) the General Assembly of Quota holders and 
(ii) the Board of Directors. At the company 's General Assembly Meetings , each quota 
holder holds a vote corresponding to the percentage of the interest held in the 
company 's capital. The Board of Directors is comprised of one or more directors, who 
may or may n ot be quota holders, appointed for an unlimited term, or for a three -year 
limited term. If the company has a capital equal to or higher than US$ 200,000, the 
management must be comprised of a Board of Directors with an odd number of 
members (minimum of 3 d irectors). A Limited Liability Company is required to appoint 
a company secretary and an auditor or an auditing board if there are more than 
10 quota holders, the company issued debentures, or if prescribed thresholds for capital 
or volume of income are ex ceeded (Article 41 of Law No. 4/2004).  
7. One Director must be a resident of Timor -Leste (Article 61 of Law No. 4/2004), 
 meaning a Timor -Leste national or a foreigner holding a valid residence permit.  
8. The name  of a Limited  Liability  Company  must end with the word "Limitada " or the 
abbreviation "Lda." 
(f) Single Quotaholder Limited Liability Company  
A foreign  natural person or foreign legal person may establish a Single Quotaholder  Limited Liability 
Company in Timor -Leste.  
Chapter IV, Part IV of Law  No. 4/2004, comprising Articles 219 to 221, addresses Single Quotaholder  
Limited Liability Companies. The provisions applicable to Limited Liability Companies (above) apply 
with the necessary adjustments (Article 219.1). The rule requiring one Director  to be a resident in 
Timor -Leste also applies to Single Quotaholder Limited Liability Companies (Article 61). The liability 
of the sole quotaholder is limited to the value of the capital subscribed (Article  191).  
The name of a single quotaholder company must end with "sociedade unipessoal " or "unipessoal " 
followed by the word "Limitada" or "Lda" (Article 219.3).  
Single  Quotaholder  Limited  Liability  Companies  are subject  to certain  strict rules concerning business 
transactions with the sole quotaholder, as follows: under penalty of being deemed  null and void, any 
such transaction mu st be (i) made in writing (unless a more formal procedure is legally required) 
and (ii) necessary, useful and convenient to fulfill the company 's object. Any transaction must 
additionally be subject to a prior report drawn up by an independent accounting a uditor, who shall 
declare that the company 's interest is duly safeguarded and that the transaction is executed on 
an arms-length basis.  
(g) Joint Stock Company  
A foreign natural person or a foreign legal person could incorporate a Joint Stock Company to carry 
out business in Timor -Leste but there must be at least 3 shareholde rs and a minimum capital of 
US$50,000.  
Chapter V of Law No. 4/2004 comprising Articles 222 to 301 sets out the rules relating to Joint Stock 
Companies . The principal featur es of a Joint Stock Company are the following:  
1. The company must have a minimum of 3 shareholders (Article 222.1);  
2. The share capital must be at least US$ 50,000 and all shares shall have the same value, 
with a minimum of US$ 10 (Article 222). Each sharehold er attending the general 
assembly has the number of votes equivalent to their number of ordinary shares in 
the share capital of the company. The share capital may be paid up in cash or in kind 
(assets capable of being seized, credit rights over third parti es); WT/ACC/SPEC/TLS/5/Rev.1  
 
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  3. The company may have ordinary shares (granting voting rights and rights to dividends 
from distributable profits), which can be divided into different categories, and 
preferential shares (which do not grant voting rights, but grant a right to priority 
dividends and to priority reimbursement in case of distribution of the company 's assets 
due to liquidation). Share certificates may be nominative or bearer (and can be 
converted from one to another) and have coupons for collecting dividends. Under certain 
circumstances an S.A. company may also issue bonds;  
4. The incorporation of the company requires the full subscription of the share capital. 
A maximum of 75% of the share capital in cash may be paid up within a maximum 
period of five 5 years, provided that th e minimum statutory share capital ( US$50,000) 
is paid prior to the incorporation of the company. The entire share capital in kind must 
be paid up prior to the incorp oration of the company (Article  223 and 238);  
5. The liability of each shareholder is limited to the payment of their respective shares 
(Article 239);  
6. One director must be a resident of Timor -Leste (Article 61 of Law No. 4/2004);  
7. The company must have the following mandatory corporate bodies: (i) a General 
Assembly of Shareholders, (ii) a Board of Directors, (ii i) a company secretary and, 
(iv) a single auditor or an auditing board (Article 41 of Law No. 4/2004). Additionally, 
the Board of Directors may delegate the day -to-day management of the company to 
one of the Directors or in an executive commission comprising several directors. 
The Board of Directors must be comprised by an odd number of Directors equal to or 
higher than 3, appointed for a maximum of 3 years. The audit body is composed of 
3 members (one of which must be a certifi ed auditor), who are elected for a 1 -year 
term with the possibility of re -election.  
8. The name of a Joint Stock Company must end with the words "Sociedade Anónima " or 
with the abbreviation "S.A." 
(h) Additional Branches  
A foreigner that has already incorpora ted and registered a compa ny in Timor -Leste (under 
Decree -Law No. 7/2006 as amended by Decree -Law No. 35/2012) and obtained a commercial licen ce 
(under Decree -Law No. 34/201 7) or an Authorization to Exercise Activity (under Decree -Law No.  
35/2012) may esta blish additional branches of the business in new locations. However, if 
the commercial licen ce limits the approved business to particular premises, then a new application 
for a licen ce must be made. In addition, Decree -Law No. 7/2006 provides that a compan y must 
register all branches of its company (Article 3(b)). Article 23.2 of Decree -Law N o. 35/2012 sets out 
the documents that are required to be lodg ed in order to register the new  branches.  
In order to simplify the aforementioned system, the Government h as presented to the National 
Parliament a bill proposing the revision of the Law on Commercial Companies. The proposal is 
currently being discussed in the National Parliament and it is expected to be approved in 
the upcoming months.  
The main simplification measures are as follows:  
1. Elimination of the General Partnerships as well as the Limited partnerships companies, 
which were never used in practice, and are being abolished in other legal frameworks;  
2. Elimination of the bearer shares in the Joint Stock Companies;  
3. Introduction of rules to release accurate informatio n on the beneficial ownerships;  
4. Elimination of the capital share in the Limited Liability Company;  and, 
5. Introduction of rules regarding affi liated companies.   WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 21 
Measures Affecting Movement of Natural Persons  
The relevant  legislation affecting  the temporary entry or temporary stay of natural persons is:  
• Law No. 9/2003 of 15 October 2003 - Immigration and Asylum Law  (hereinafter referred to 
as the Immigration law);  
• Decree -Law No. 5/2010 of 16 March 2010 - On Granting of Visit Visas and Transit Visas On 
Arrival; and,  
• Decision No. 232/SEPFOPE -GSE/D/X/2013 of 1 October 2013, issued by the Secretary of State 
for Professi onal Training and Employment Policy (SEPFOPE) – On granting of the authorization 
needed for foreign employees to work in Timor -Leste and as well granting the relevant visas 
(for work purposes).  
The relevant  agencies of the government responsible for granti ng authorization for entry and/or stay 
of natural persons are:  
• The Department of Immigration within the Ministry of Interior;  
• The Directorate -General for Consular Affairs within the Ministry for Foreign Affairs and 
Cooperation;  
• The General Labor Inspectora te under SEPFOPE.  
Depending on the type of visa requested, applications are made to the Department of Immigration 
or to Directorate -General for Consular Affairs. The Directorate -General for Consular Affairs  acts on 
the advice of the Department of Immigrati on. Regarding the granting of visas for work purposes, 
prior to the submission of the visa application to the Directorate -General for Consular Affairs, 
the General Labor Inspectorate must authorize the performance of the  professional activity in 
Timor -Leste and verify the qualifications needed for such performance.  
- Visas  
The Immigration Law (Law No. 9/2003) provides for three categories of visas:  
• Ordinary visas of which there are 4 different classes, none of which qualify the person to work 
in the country (Article 35);  
• Work visas which do authorize the bearer to carry ou t a professional activity as an  employee 
or independent worker (Article 36); and  
• A visa to allow the bearer to apply for temporary residency, which can be accompanied by an 
authorization to carry out a professional activity as an employee or independent worker 
(Article 37).  
The law also provides for those residing on a longer -term basis to apply for permanent  residence.  
- Ordinary Visas  
There are 4 classes of Ordinary Visas:  
Ordinary Visa Class I applies to persons entering for either tourism or business. The visa can be for 
a period of up to 90 days, is valid for one year, and can be granted for a single entry or for multiple 
entries (Article 35.2 of Law No. 9/2003). An ordin ary Class I Visa can be extended for up to 90 days 
(Article 42.1(a) Law No. 9/2003), allowing a total stay of up to 180 days.  
According to Decree -Law No. 5/2010, persons arriving at an airport or port who are nationals of 
a country on a list of authorized countries may apply for an Ordinary Class I Visa at the port of entry  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  (Article 3.1 of Decree -Law No. 5/2010), and the Department of Immigration can grant the visa at 
the port of entry (Articles 38.4 and 39.4 of Law No. 9/2003). Persons arriving at an airpo rt or port, 
who are not nationals of a country on the list of authorized countries need to apply for an Ordinary 
Class I Visa at a Timor -Leste consulate abroad (Article 4.2 of Decree -Law No. 5/2010) and the visa 
is issued by those Consulates (Article 38.4 and 39.4 of Law No. 9/2003). The abovementioned list 
of authorized countries has not yet been published and Timor -Leste 's Embassies and Consulates are 
not issuing visas, thus, in practice, the Ordinary Class I Visa must be obtained on arrival at the port 
of entry.  
Under Decree -Law No. 5/2010 persons arriving at a land border who are nationals of Indonesia, or 
of a country with which Timor -Leste has an agreement, may apply for an Ordinary Class I Visa at 
the land border control post. Persons arriving at a la nd border who are nationals of any other country 
must apply for an Ordinary Class I Visa at a Timor -Leste consulate abroad (Article 2.2 of 
Decree -Law). Currently, Timor -Leste 's Embassies and Consulates are not issuing visas, thus, in 
practice, the abovemen tioned visa must be obtained at the ports of entry at the border.  
According to the terms of a bilateral agreement between Timor -Leste and Portugal, entered into on 
20 May 2002, Portuguese nationals who present a Portuguese passport on arrival and who seek to 
enter for tourism, business, cultural, or journalism purposes are exempted from having to obtain 
an Ordinary Class I Visa. They may stay up to 90 days from the date of arrival. The stay period may 
be extended up to a further 90 days after arrival on app lication to the Department of Immigration, 
where that further stay is justified on exceptional grounds.  
Parliamentary Resolution No. 10/2015 of 5 August 2015, approving the Agreement between 
Timor -Leste and the European Union, establishes a visa exemption regime for European Union 
citizens  and Timor -Leste citizens arriving in the respective territory of the counterpart for a maximum 
period of 90 days in each period of 180 days. This exemption is not applicable to persons traveling 
for purposes of performing  a professional activity. This agreement enters into force on the first day 
of the second month following the date on which the last notification of conclusion of the respective 
internal approval procedures occurs.  
Ordinary Class II Visas are designed for short transit through Timor -Leste for a maximum of 72  hours  
(Article 35.3).  
Ordinary Class III Visas are student visas issued for up to one year at a time but renewable 
(Article  35.4)  
Parliamentary Resolution No. 11/2009 of 6 May 2009, approved the agreeme nt on the granting of 
visas for students who are nationals of the Member States of the Community of Portuguese Speaking 
Countries, which sets forth common rules concerning the granting of said visa.  
Ordinary Class IV Visas allow for a duration of up to 180  days for persons visiting "on a cultural  trip, 
for scientific research, as an artist or athlete, or as a foreign media correspondent. " 
- Work Visa  
Under Law No. 9/2003 applications for work visas must be made to a Timor -Leste consular office 
abroad or, in cases where the applicant resides in countries or territories where there are no such 
entities, to the Directorate -General for Consular Affairs of the Ministry of Foreign Affairs and 
Cooperation (Article 39). However, for the time being, Timor -Leste 's Embassies and Consulates are 
not issuing visas, thus, at present, the application must be submitted in Timor -Leste to 
the Directorate -General for Consular Affairs. Pursuant to Law No. 9/2003 the Directorate -General 
for Consular Affairs of the Ministry of Fo reign Affairs and Cooperation must consult with 
the Immigration Department of the Ministry of the Interior and with the General Labor Inspectorate 
(Articles 38.2 and 38.3). The applicant must, among other requirements, supply evidence of 
employment and pro fessional competence (Article 40). If the Directorate -General for Consular 
Affairs in the Ministry of Foreign Affairs and Cooperation approves the visa, then it issues 
an authorization to the applicant and to the border control point, which issues the visa  (Article 39.3).  
The Work Visa allows the bearer to carry out the employment or the professional activity that was 
claimed in the visa application (Article 36). The Work Visa allows a stay of up to one year and is WT/ACC/SPEC/TLS/5/Rev.1  
 
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  valid for one or multiple entries (Article  36.3). The bearer may obtain three extensions for additional 
periods of 1 year with each extension, up to a total of 4 years (Article 42.1(b)).  
A person granted a Work Visa to be employed with a particular employer is not permitted to work 
for a different  employer unless the person obtains approval from the General Labor Inspectorate 
(Article 8.3). 
- Visa to Establish Temporary Residency  
There is an additional  category of visa for persons to enter the country for the purpose of applying 
for temporary residence (Article 37 of Law No. 9/2003). This visa allows the bearer to remain in 
the country for 6 months. It is possible that the terms of the visa may allow ac tivity as an employee 
or independent worker. Law No. 9/2003 states that the number of such visas allowing work is limited 
according to an annual resolution of the Council of Ministers (Article 37.5). However, taking into 
consideration that this resolution has not yet been published, the granting of such visa is not 
currently subject to a maximum quota.  
- Application for Temporary Residence or for Permanent Residence  
A person who has been a legal resident for 12 years may receive permanent residency status 
(Article  53). However, persons who are a resident for a lesser period may apply for a temporary 
residence authorization, which is valid for 2 years but can be ren ewed for equal periods (Article  51). 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 22 
Relevant sources of laws regarding interests in real estate  
1. Law No. 1/2003 of 10 March 2003, on the Legal Framework on Real Estate Property;  
2. Decree -Law No. 19/2004 of 29 December 2004, on the Legal Framework on the Official 
Allocation and Leasing of Real Estate Property belonging to the Pri vate Domain of the State;  
3. Ministry of Justice Order No. 19/GM/MJ/III/2009 of 20 March 2009, on the definition of small, 
medium, and large commerce and industries;  
4. Decree -Law No. 6/2011 of 9 February 2011 – Rules for Relocation of Unlawful Occupants of 
State Property;  
5. Decree -Law No. 27/2011 of 6 July 2011 on the Settlement of Ownership of Immovable Assets 
in Undisputed Cases (the "Ita Nia Rai " project);  
6. Law No. 14/2011 of 28 September 2011, Private Investment Law;  
7. Law No. 10/2011 of 14 September 2011, Approv es the Civil Code (CC);  
8. Ministry of Justice Ministerial Order No. 16/2011 of 27 July 2011, about the Cadastral Survey 
and Data Collection Procedures;  and, 
9. Ministry of Justice Ministerial Order No. 23/2011 of 23 November 2011, on Conversion of 
Ownership Statements into Ownership Titles in Undisputed Cases ; 
10. Law No. 13/2017 of 5 June 2017 on "Special Regime to Define Real Estate Ownership " (Land 
Law).  
The situation existing under the above laws may change as a result of the approval of the Land Law 
by the National Parliament  on 26 April 2017, further enacted by the President of the Republic of 
5 June 2017, aiming to resolve disagreements and uncertainties that have arisen as a consequence 
of the post -colonial, post -occupa tion, and post -conflict situation of the country. The Land Law 
package consists of the following main Laws:  
I. Law on Special Regime for the Definition of Ownership of Immovable Property 
("Land  Law"), which establishes the criteria for the recognition of prop erty rights; 
establishes criteria and mechanisms for resolution of land disputes; recognizes 
communal land and creates Community Protection Zones.  
II. Expropriation Law, which sets forth the procedures and constraints on expropriation by 
the State as well as t he rules on the definition of the compensation to be paid as a result 
of expropriation procedures.  
III. Law on the creation of an Immovable Property Fund Law, which creates a financial fund 
for the payment of financial compensation due as a result of the applic ability of 
the above -mentioned draft laws.  
- Where the State is the Owner of the Land and the State Grants the Lease  
The Legal Framework on Real Estate Property, approved by Law No. 1/2003 of 10 March 2003, 
provides that the State owns certain land (Articl e 4.1). Specifically, the State 's Real Estate property 
is categorized as that belonging either to (i) the Private Domain of the State, or (ii) as belonging to 
the Public Domain of the State, which is defined as those areas set forth in the law which cannot  be 
subject to private appropriation unless otherwise expressly foreseen under any law allowing for its 
lease, concession or temporary use. Law No. 1/2003 also provides for the power of the State to evict 
others from the State 's land (Article 7), but the e xercise of the power to evict illegal occupiers does 
not prejudice the rights acquired by b ona fide third parties (Article  9). The law also provides for the WT/ACC/SPEC/TLS/5/Rev.1  
 
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  State to take temporary administrative control of abandoned land (Article 15) and specifically 
authorizes the State to lease abandoned land to locals or foreigners and to natural persons or 
corporate bodies (Article 15.3).  
The lease of properties belonging to the State is mainly governed by Decree -Law No. 19/2004 of 
29 December 2004, on the Legal Framew ork on the Official Allocation and Leasing of Real Estate 
Property belonging to the Private Domain of the State. This legal framework specifically allows for 
the State to lease State -owned property to nationals or foreigners and to natural persons or 
corpo rate bodies (Article 9). The law provides that the State has an obligation to ensure the use and 
enjoyment of the property by the lessee (Article 7.(b)). Article 11 provides for the rental amount to 
be determined according to a general framework that may "establish a special framework for national 
citizens. " 
For leases of "medium or large -scale commerce or industry belonging to citizens and to national 
and/or foreign companies " (Article 10.1(d)), the Decree -Law sets out a process of publicly calling 
for proposals and for the award of the lease by a Rent Committee (Article 12). The procedure does 
not apply to persons occupying State property at the date Law No. 19/2004 came into force, because 
in this situation the State may negotiate directly with said persons without being obliged to launch 
a tender procedure (Article 26). Irrespective of the tender requirement, it is fairly common for 
the State to enter into direct negotiations  with parties interested in leasing State land.  
Where the State leases abandoned land, the term of the lease may only be of 3 years, renewable  
for equal terms, unless the land owner subsequently claims possession of the land (Article  22.2 of 
Decree -Law No.  19/2004).  
Pursuant to Article 14.2 of Decree -Law No. 19/2004, a lease agreement is subject to the following 
maximum terms, depending on the type of lessee or use given to the land:  
(a) 5 years  – land used for private accommodation;  
(b) 10 years  – land use d for small private commerce and industries;  
(c) 20 years – land used by Humanitarian Agencies and NGOs;  
(d) 30 years – land used for medium commerce and industries;  
(e) 50 years  – land used for large commerce and industries, and for agriculture; and,  
(f) 50 years – land used by International Organizations and Diplomatic Representations  
The definition of small, medium and large commerce and industries is set forth in Ministry of Justice 
Order No. 19/GM/MJ/III/2009 of 20 March 2009, and  is as follows:  
(a) Large commerce and industries: investments in an amount equal to or higher than US$20  million 
or that encompass the lease of State property with a total  area equal to or higher than 5  hectares 
(for tourism purposes) or higher than 100 h ectares (for any other purpose);  
(b) Medium commerce and industries: investments in an amount higher than US$ 1 million; and  
(c) Small commerce and industries: investments in an amount up to US$ 1 million.  
The provisions in Decree -Law No. 19/2004 relating to the term of a lease of State -owned land may 
not apply if the lease is to be entered into under the Private Investment Law, as approved by 
Decree -Law No. 14/2011. Pursuant to the Private Investment Law, certain benefits and exemptions 
may be granted to investors that meet all the criteria required to receive an Investor Certificate 
(the document issued by the authorities that sets forth, inter alia, the duties of the investor, 
the incentives and benefits to be granted by the State, the terms o f its cancellation, and the dates 
of commencement, implementation and termination of the investment or reinvestment project). 
Article 24 of the Private Investment Law provides that the State can enter into a lease agreement 
with the holder of an Investor's  Certificate for a maximum time period of 50 years, renewable once 
for an equal period of time.  
Leases Where the Lessor is the Registered Proprietor of Land under the Registration System 
Established under Decree -Law No. 27/2011 of 6 July 2011  
A Ministerial  Order of the Ministry of Justice in 2008 approved the commencement of a cadastral WT/ACC/SPEC/TLS/5/Rev.1  
 
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  survey. The survey was carried out as a project of the United States Agency for International 
Development (USAID) called the Ita Nia Rai project (meaning "our land" in Tetum ) from 2008 until 
2012 when USAID handed the project over to the Ministry of Justice. The cadastral survey collected 
records of land claims in certain local areas, whether by individuals, legal entities, communities, 
groups or the State and published maps showing individual parcels of land and the claimants claiming 
an interest in that land. During that period, claimants who had claimed ownership over a given plot 
of land (and provided that no third parties challenged such claim within a given period of tim e) were 
granted a "definitive" land registration title, and the validity of this title can only be challenged before 
the courts. This database of maps of parcels of land and the relevant claimants were to become 
the basis of the property register created b y Law No. 27/2011, and further regulated by Ministerial 
Order No. 16/2011 of 27 July 2011, on Data Collection Procedures, and Ministerial Order No. 23/2011 
of 23 November 2011, on Conversion of Ownership Statements into Ownership Titles in Undisputed 
Cases . 
Decree -Law No. 27/2011 established the National Property Cadaster, which is the database that 
contains the information collected through the cadastral survey process (Article 3) and provides that 
the National Property Cadaster is composed of the cadastra l database and the property register 
database (Article 3.2). Pursuant to the Ministry of Justice Ministerial Order No. 23/2011, the results 
of the cadastral survey process were organized into two lists: a list of  parcels of land where 
the ownership was und isputed, and a list of parcels of disputed land. Under Article 8 of Decree -Law 
No. 27/2011, and implementing regulations in Ministerial order 23/2011, the claimants of 
the undisputed parcels of land were entered into the register as the registered owner of  the parcel 
of land. Even though the process permitted claims by juridical entities, it was only undisputed claims 
by Timorese natural persons that resulted in the claimants becoming registered holders. 
(Article  1.2(a) and (b) of Decree -Law No. 27/2011 and  Article 2.1(a) of Ministerial Order 
No. 23/2011).  
Registration creates a presumption that the registered holder is the owner of the registered parcel 
of land (Article 4.2) but it remains possible at any time for others to challenge the recognition of 
owne rship that has been registered (Article 8.3). The person challenging the claim would bear 
the burden of proving that the registered holder is not the owner of the land.  
Registration of recognition of ownership in the register also affects the duration of t he period of 
uncontested occupation that must pass in order to justify a claim of title through prescription 
(adverse possession). Generally, the law in Timor -Leste regarding the  acquisition of title in land 
requires a  period of 25 years or, if the possess ion is in good faith, of 20 years (Article 1216 of the 
CC of Timor -Leste, as approved by Law No. 10/2011). However, where there is "a title of purchase, 
that has been registered, " an acquisition of ownership through prescription occurs after 15 years, or 
if the possession is in good faith , after only 10 years (Article 1214 of the CC).  
A Registered Holder may transfer their ownership. In line with Article 53.4 of the Constitution, 
Article  10.5 of Decree -Law No. 27/2011 provides that only a transfer of ownership to a person who 
is a national of Timor -Leste can be recorded in the register.  
The law protects the title of a person who purchases land from the Registered Holder for valuable 
consideration in good faith and who then registers their ownership. A third party purchasing rights 
with respect to a property for valuable consideration in good faith from the Registered Owner, shall, 
after the expiration of 3 years after the date of registration of the transfer , have rights that cannot 
be affected by any s ubsequent claim (Articles 10.8 and 10.9). In view of the foregoing, lessees 
should always confirm if the alleged owner has registered his "ownership rights" under the Ita Nia 
Rai project and obtained the above mentioned definitive land registration title. Should the alleged 
owners have such titles, this would give the lessee confidence in the legal status of the property, 
given that in principle the Registered Holder has good title and capacity to ensure use and enjoyment 
of the leased land.  
After a lapse, the Government is continuing with a cadastral survey  program . This ongoing survey 
and registration program will gradually increase the area of land that is subject to the  registration 
system under Decree -Law No. 27/2011.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Leases of Other Land  and Alternat ive Legal Arrangements  
Where land has not been subject to the cadastral survey or has been subject to the cadastral survey 
but is disputed, it is more difficult to verify the ownership of land. However, as mentioned above, 
the Government of Timor -Leste is working to improve the certainty of land tenure in other situations 
through enacting the proposed new laws described above.  
In addition to lease agreements, Articles 1414 et sequitur  of the CC detail the terms and conditions 
for the constitution of surface rights, an alternative legal mechanism to obtain access to land in 
Timor -Leste. The surface right is a right in rem that consists of the ability to construct or maintain, 
temporaril y or perpetually, a building on third party land (or have or maintain a plantation on such 
land). Based on this provision, a person may build and maintain, temporarily or perpetually, 
buildings or structures on State -owned property or private property. Con trary to what happens, for 
example, in a concession agreement, the surface rights solution has the advantage of the holder 
becoming the owner of the building/facility once completed, whilst the State/private owner remains 
owner of the land underneath. The surface rights holder can sell, lease or otherwise encumber its 
right with an authorization from the grantor. The surface rights require  the payment of a fee, which 
may be an annual fee or a one -time payment made at the time of constitution of the surface rights. 
Upon expiration of the surface rights, the constructions automatically revert to the owner of the 
land, however, unless otherwise agreed between the parties, the surface right holder would have 
the right to compensation. Similar to the lease soluti on, surface rights may be granted to private 
land or in certain areas of Private Domain of the State.  
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 23 
Ministries and State Bodies Responsible for the Regulation  in Specific Services 
Sectors/Sub -Sectors  
Services sector/sub -sector  Responsible Ministry/state body  
Financial services   Central Bank of Timor -Leste (CBTL)  
Telecommunications  National Communications Authority  
Educational services  Ministry of Higher Education, Science and Culture  
Ministry of Education, Youth and Sport  
Oil & gas and mining  Ministry of Petroleum and Mineral Resources and National 
Authority for Petroleum and Minerals  
Legal services  Ministry of Justice  
Services by health professionals (hospital 
services, medical and dental ser vices, and other 
human health services)  Ministry of Health  
Construction services  Ministry of Public Works, Transports and Communications  
Transport services  Ministry of Public Works, Transports and Communications  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 24  
Regulations on trade in services  
Business Services  
Professional services  
- Legal Services   
 Law No. 11/2008 of 30 June 2008 (as amended by Decree -Law No. 39/2012 of  1 August  2012,  
Law No. 1/2013 of 13 February 2013  and Law No. 4/2015 of  30 December  2015) sets forth that 
the legal profession is reserved for those who, until a Timor -Leste Bar Assoc iation is  created 
and begins operating, are registered as lawyers with the Centre for Legal Training  (CLT).  
Article 2.3 enumerates the requirements that foreign lawyers must comply with in  order to be 
registered with CLT. These include, (i) having a law degree, (ii) being licen sed to  practice in 
another country; (iii) having knowledge of the Timor -Leste 's legal framework, (iv) having 
written and spoken command  of at least one of the official languages of Timor -Leste and , 
(v) having practiced for a minimum of 5 years. Also, in accordance with the most recent 
amendments to  the applicable legislation, foreign lawyers must (i) practice in association with 
a Timorese lawyer and (ii) agree with the latter on the applicable fees.  
 Decree -Law No. 3/2004 of 4 February 2003 sets forth the Legal Framework of Notaries, one of 
the requirements being that the notary must be a national of Timor -Leste. Decree -Law 
No. 2/2012 of 15 February 2012 provides for the Framework of Registrars and Notaries.  
- Medical and dent al services   
Decree -Law No. 14/2004 of 1 September 2004 (as amended by Decree -Law No. 40/2011 of 
21 September 2011) sets forth that all medical staff (i.e. doctors, midwives, nurses, therapists, 
and diagnostic technicians) must be registered with the Minis try of Health, which is responsible 
for assessing the respective qualifications. Foreign doctors may apply for registration with 
the Ministry of Health and are required to obtain a work or residence visa under the general 
provisions of the law and the rule s set forth in Decree -Law No. 14/2004, as amended by 
Decree -Law No. 40/2011.  
Decree -Law No. 18/2004 of 1 December 2004 sets forth the requirements for private health 
services, including a licensing procedure that must be followed prior to the opening to th e public 
of such health units.  
Decree -Law No. 13/2012  of 7 March  2012 provides  for the rules on the Careers  of Health 
Professionals employed by the State.  
Decree -Law No. 12/2004 of 26 May 2004, on Pharmaceutical Activities, provides for the licensing 
requirements for the importation, storage, wholesale, retail sale, and exportation of medicines 
for human use.  
Other business services  
- Advertising services   
Decree -Law No. 51/2011 of 21 December 2011 approved the Legal Framework on Advertising  
Activities, which sets forth the rules and principles that advertising messages must comply with, 
notably for consumer protection. This statute contains a list of services and products that cannot 
be advertised (e.g. weapons and munitions) as well as a li st of products where advertising is 
subject to specific rules, such as tobacco, alcoholic drinks, medicines, cars, and immovable 
properties. Notwithstanding the above "content rules, " the provision of advertising services 
(notably the rules and requirement s for licensing advert ising professionals) is not yet  regulated.  
- Services incidental to agr iculture, hunting and forestry   
The United Nations Transitional Administration in East Timor (UNTAET) Regulation No. 2000/17 
of 10 May 2000 prohibits the exploration and exportation of wood. No other regulations on 
the performance of agricultural, hunting, or forestry activities and ancillary services are currently 
in place.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Services incidental to fishing   
Decree -Law No. 6/2004 of 21 April 2004 approved t he Legal Framework of Fishing Management 
and Regulation that sets forth the licensing procedure for those wishing to carry out fishing 
activities. Foreign natural persons and legal entities cannot obtain licen ces for artisanal fishing 
or deep -sea fishing, as these are reserved for nationals. Government Decree No. 5/2004 of 
28 July 2004 – Fishing General Regulation – further details the licensing procedures as well as 
the rules on the acquisition and transfer of property over fishing vessels.  
- Services inci dental to mining   
Ministerial Diploma No. 1/2008 of 30 July 2008 (as amended  by Ministerial Diploma No.  1/2009, 
of 12 August 2009)  details the procedure to be foll owed for the acquisition of (i)  Survey Licen ces 
which are granted for the development of geol ogical studies of some specific minerals, 
(ii) Preliminary Licen ces which are granted in cases of large -scale mining for the development 
of studies and works to be carried out prior to the exploration phase, and , (iii) Permanent 
Licences, which are granted for the beginning of the operation of an exploration unit.  
This st atute also sets forth the applicable fees, such as (i) the extraction rate, i.e. the amount 
of the levy, which is based on the type of mineral and on the quantity of extracted mineral and 
(ii) licensing rate, a one -time payment due upon the issuing of the licence. 
The Mining Code is expected to be approved in the near future.  
Law No. 13/2005 of 2 September  2005 on "Petroleum Activities " sets forth the  rules applicable 
to the authorization of petroleum activities. However, it does not include provisions on licensing 
of activities incidental to petroleum exploration and production ( "oilfield  services. ") 
Communication Services  
Decree -Law No. 15/2012 of 28 May 2012 created the National Communications Authority (NCA), 
the supervisory authority and regulator for this sector. The NCA manages registration of 
telecommunications  services providers and of entities that operate telecommunications networks, 
and grants radiofrequency spectrum licen ces. 
Postal services  
Postal Service s are governed by Decree -Law No. 17/2004 of 3 November 2004 (Articles 11 and 12). 
Under this statute, Universal Pos tal Services are subject to an exclusivity regime, while other 
services (such as courier services) are open for competition.  
Courier services  
Article 12 of Decree -Law No. 17/2004 allows courier services to be carried out on a competition 
basis, provided certain thresholds are met. The country is currently served by several courier 
services licen sed to conduct their business under the general bu siness regulations and Decree -Law 
No. 17/2004.  
Telecommunication services  
Decree -Law No. 15/2012 regulates the provision of telecommunication services in Timor -Leste, 
which are defined as, "Any retail or wholesale service commonly rendered upon payment by  the user, 
that consists  primarily or wholly of telecommunications. " In turn, telecommunications are defined  
as the "transmission, reception or emission of signals representing  symbols, writings, images, 
sounds or information of any nature, by means of wires, optical systems, radio electric means, and 
other electromagnetic systems ." 
Whoever wishes to use the radiofrequency spectrum, operate radio equipment,  or provide 
telecommun ications or  telecomm unication network services in Timor -Leste, must be granted 
a licence by the NCA. Chapter V of Decree -Law No. 15/2012 (Articles 30 through 33) establishes 
the rules on mandatory registration of telecommunication services providers and pr oviders of 
telecommunications networks. Established in Article 32 are the NCA 's powers to exempt an operator 
from registration.  
Audiovisual services  
Under the Media Law (Law No. 5/2014 of 19 November 2014) radio and television media services 
require a rad iofrequency spectrum licen ce granted by the NCA. Article 24 of the same statute 
determines that the "participation of foreign individuals or legal persons in the share capital of 
a media corporation may not exceed 30%. " WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Construction and Related Engineering Services  
Decree -Law No. 27/2010 of 22 December 2010 establishes the rules for the certification and 
registration of construction and construction consultancy companies. However, to date, Decree -Law 
No. 27/2010 is not currently being enforce d. Decree -Law No. 26/2010 of 22  December 2010 sets 
forth the rules for the registration of sole entrepreneurs of the  construction sector. Pursuant to Article 
6, only national citizens are able to apply for registration as sole entrepreneurs. Decree -Law 
No. 2/2010 of 18 February 2010 provides for special procedures for awardi ng construction works up 
to US$ 250,000 to local companies with registered offices in the sub -districts.  
Educational Services  
Primary education services  
Decree -Law No. 7/2010 provides for th e Legal Framework for the Administration and Management 
of the Basic Education System, containing the rules applicable to public primary education.  
Decree -Law No. 23/2010 of 9 December 2010 approved the Rules on Careers for Child Educators 
and Basic and Se condary Education Teachers employed by the State.  
Secondary education services  
Decree -Law No. 33/2011 of 3 August 2011  approved the Legal Framework for the Administration 
and Management of the public Secondary Education System.  
Higher education services  
Decre e-Law No. 8/2009 of 19 May 2009  sets forth the Legal Framework of the Higher Education 
Institutions according to w hich such institutions may assume the form of a foundation, association, 
cooperative, or limited liability company by quotas or joint stock company. This statute includes a 
set of requirements to be met by each type of institution.  
Environmental services  
Decree -Law No. 5/2011 of 9 September 2011 on "Environmental Licensing " regulates public and 
private  projects capable of giving rise to environmental and social impacts and prescribes that they 
must undergo an environmental licensing procedure depending on the characteristic and sector of 
the project.  
Financial Services  
All insurance and insurance -related services  
- Relevant laws and regulations  
The relevant laws and regulations relating to insurance and insurance -related services are : 
• Law No. 6/2005 of 6 July 2005, on the Legal Framework on the Licensing, Supervision 
and Regulation of Insurance Companies and Insurance Intermediaries;  
• Banking and Payments Authority (BPA) Instruction No. 1/2007 on the Licensing of 
General  Insurance Companies;  
• BPA Instruction No. 2/2007 on the Licensing of Insurance Intermediaries;  
• Governing Board Resolution No. 8/2007 on the Administrative Fees Schedule applicable 
to Insurance Companies and Insurance Intermediaries; and  
• Public Instruction N o. 7/2010 on Compulsory Third Party Liability for Motor Vehicle 
Insurance.  
- Supervisory a uthority  
The CBTL (created by means of Law No. 5/2011 of 15 July 2011, and which succeeded the  Central 
Payments Office "CPO" and the Banking and Payments Authority "BPA") is the  supervisory 
authority for the insurance sector. The CBTL is responsible for, inter alia : 
• Licensing, supervising and regulating insurance companie s and insurance intermediaries;  
• Ensuring the protection of the legitimate interests of policyholders and insurers;  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  • Defining the standards of conduct for insurance companies and insurance intermediaries by 
means of regulations in the form of instructions; and  
Issuing directives in the form of orders.  
- Permitted e ntities  
Insurance activities can only be carried out by:  
• Joint stock  companies  incorporated  in Timor -Leste  (no foreign ownership restrictions are 
imposed); and  
• Branches of foreign insurance companies registered in Timor -Leste.  
- Licensing procedure  
The application for a licen ce to establish an insurance company shall be accompanied by 
the following documents and information:  
• The company Founders Agreement;  
• Copy of Articles of Association;  
• Copy of Shareholders Agreement, where applicable;  
• Organic structur e and breakdown of  capital and persons concerned;  
• Identification of the members of the corporate bodies; and  
• Such other documents and information to be defined by CBTL 's instruction deemed necessary 
to perform supervisory functions.  
When granted, a prelimi nary approval shall expire within one year of the date of granting of such 
approval. The definitive approval of an insurance company is contingent on the fulfillment of 
the following requirements:  
• Incorporation  of the company  in accordance  with the Compani es Law of Timor -Leste  or 
registration of the branch of a co mpany incorporated in a foreign  jurisdiction;  
• Subscription and paying -up of the mandatory minimum share capital;  
• Preparation of the company 's business plan on the basis of a sound analysis grounded on  
reasonable assumptions;  
• Written commitment to abide by the provisions of Law No. 6/2005;  
• Adequacy  of the qualifications,  experience,  and integrity  of the members  of the board  of 
directors, of the auditing board, and of the company 's key shareho lders, as well as the persons 
who have or wish to have relevant interests therein, in view of the business plan and the 
financial activities of the insurance company;  
• Minimum registered capital of US$ 500,000;  
• The board of directors must be composed of a minimum of three members, all of which must 
be residents of Timor -Leste;  
• Compliance with all the other conditions with respect governance requirements referred to in  
Chapter VIII of Law No. 6/2005; and  
• Other requirements as may be determined by the CBTL by way of an instruction aimed at 
guaranteeing compliance with the provisions of Law No. 6/2005.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  The CBTL may refuse to grant a licen ce where it deems that such a licen ce would undermine 
legitimate interests of future policyholders or insurers. A licen ce is valid for an indefinite period of 
time and may not be transferred. Decisions on the licensing of insurance companies are made by the 
CBTL in an independent and impartial manner.  
- Mandatory i nsurances  
Currently, Third Party Motor Veh icle Liability (Public Instruction No. 7/2010) is the only mandatory 
insurance in Timor -Leste.  
- Life, accident and health insurance services  
Life Insurance – Law No. 6/2005 defines life insurance as insurance for one or more persons 
represented by an insu rance policy or policies, where insurance compensation is contingent upon the 
life or death of a certain individual or involves the payment of an annuity. The delivery of savings 
and pension products in connection with the life, death, or disability of an individual is deemed to be 
life insurance.  
As per Law No. 6/2005 the CBTL shall, by means of an instruction, define the insurance categories 
authorized in the areas of life insurance. However, no such instruction has been published to date. 
Furthermore, an d contrary to regulations on non -life insurance companies, no specific instruction on 
the licensing of Life Insurance Companies has been published. According to this law, the same 
insurance company cannot provide classes of insurance business in general in surance (which includes 
all types of insurance, including health insurance, except life insurance, and all other categories  of 
activities  as may be determined  by means  of the CBTL's Instruction)  and life insurance 
simultaneously.  
There are no other relevan t legal provisions specifically addressing the performance of life insurance 
services.  
- Non-life insurance services  
In Timor -Leste,  non-life insurance  is known  as "General  Insurance " (as opposed  to "Life Insurance "). 
Law No. 6/2005 defines general insurance as all types of insurance, including health insurance, 
except for life insurance and all other categories of activities as may be determined by CBTL 's 
instruction. As per Law No. 6/2005 the CBTL shall, by means o f an instruction, define the insurance 
categories authorized in the areas of general insurance. However, no such instruction has been 
published to date. The specific legal requirements and procedures aimed at licensing General 
Insurance Companies a re laid down in Instruction No.  1/2007.  
Accident Insurance – Law No. 6/2005 defines accident insurance as insurance against the risk of 
damage arising out of a fortuitous event. There are no other relevant legal provisions specifically 
addressing the performance o f accident insurance services.  
Health Insurance – Law No. 6/2005 defines health insurance as insurance that provides protection 
against financial loss risks arising out of harm caused to a person 's health. There are no other 
relevant legal provisions speci fically addressing the performance of health insurance services.  
Besides the foregoing, there are no other relevant legal provisions specifically addressing 
the performance of general insurance services.  
- Reinsurance and r etrocession  
Law No. 6/2005 define s Reinsurance as the financial protection provided by an insurance company 
to another insurance company. There are no provisions in respect of retrocession or other relevant 
legal provisions specifically addressing  the performance of reinsurance  services.  
Services Auxiliary to Insurance (Including Broker and Agency Services)  
- Permitted e ntities  
Insurance intermediaries must be licensed by, and registered with, the CBTL. The activity of 
insurance intermediation in Timor -Leste is reserved to:  
• Agents;  
• Sub-agents; and , 
• Brokers.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Agents – As per Article 20 of Law No. 6/2005, the role of an agent is to sell insurance products and 
services adequate for the needs of policyholders and insured, in representation of an insurance 
company, against the payment of a  commission, a fixed salary, or a combination of both, by 
the latter. The relationship between the agent and the insurance company shall be governed by 
a written contract, which shall establish the specific powers of the agent and expressly define 
the acts to be performed by the agent for whom the insurance company assumes responsibility. As 
per the applicable law, agents are prohibited from acting on behalf of more than one insurance 
company. As per the combined provisions of Article 11.2 of Law No. 6/2005  and Article 4.1 of 
Instruction No. 2/2007, agents may be natural or legal persons with minimum registered capital of 
US$ 5,000.  
Sub-agents – Subagents act on behalf insurance agents and are prohibited from acting on behalf of 
more than one insurance agent . Subagents shall, on a yearly basis, submit to the CBTL a written 
confirmation of the insurance agent on whose behalf they are authorized to act. Subagents are 
remunerated in the form of a commission or fixed salary, or both, by the insurance agents they 
represent. As per the combined provisions of Article 11.2 of Law No. 6/2005 and Article 4.1 of 
Instruction No. 2/2007, sub -agents may be natural or legal persons with minimum registered capital 
of US$ 5,000.  
Brokers – In accordance with Article 21 of Law N o. 6/2005, insurance brokers are required to obtain 
the most adequate insurance policy for the needs of the policyholders or insured. Brokers are 
remunerated in the form of a commission by the insurance company whose insurance policy they 
have sold. Broker s are obliged to keep an up -to-date list of the insurance companies on whose behalf 
they are authorized to act, and that list may, at all times, be examined by the CBTL. As per 
Article  11.3 of Law No. 6/2005, insurance brokers shall take on the form of a c ompany with a share 
capital above of US$25,000. The existing legislation, notably Law No. 6/2005 and Instruction 
No. 2/2007, only sets forth the licensing and registration requirements of each type of insurance 
intermediaries.  
Banking and Other Financial S ervices (Excluding Insurance)  
With exception of a few statutes, mostly regulations issued by the CBTL, the applicable legal 
framework is still governed by the legislation and regulatory rules and regulations created by 
the UNTAET, which held the legislativ e and executive powers in the territory of Timor -Leste during 
the transition period to the independence from the Republic of Indon esia (25 October 1999 – 
19 May 2002).  
Timor -Leste 's legal framework is based on the universal banking model, under which there is no 
mandatory  segregation between banking (such as deposit -taking and lending) and securities 
transactions, i.e. between commercial and investment banking.  
- Regulator  
The banking and financial sector is supervised by the CBTL. As a corollary of th e aforesaid 
supervision  duties,  CBTL is responsible  for regulating,  licensing,  and registering  banking  and 
financial institutions in the country (including local branches of foreign banking  and financial 
institutions), as well as for monitoring compliance with the applicable legal framework  and enforcing 
any fines and penalties in case of any breach thereof. CBTL is empowered to issue regulations and 
instructions on prudential and supervisory matters.  
- Permission to operate  
One of the main principles of the regulatory framework is that only financial institutions duly licen ced 
by, and registered with, the CBTL are allowed to engage  directly in any financial activity in 
Timor -Leste. In order to be granted  the required licen ce, banking and  financial institutions must be  
organized under the laws of Timor -Leste, i.e. , through a locally incorporated company or a branch 
of a foreign financial institution registered in the country.  
In Timor -Leste, there are three classifications of b anking licen ces that the law designates : A, B, and 
C. Such classifications of licen ces are directly related to the scope of activities that the holder of 
the given licen ce is allowed to perform in Timor -Leste, as per Section 24 of the Regulation.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Capital  requirements  
As per Section  4.1 of the Regulation,  the CBTL is responsible  for establishing  the minimum regulatory 
capital for licen sed banks, which shall not be less than the equivalent of US$ 2,000,000. The CBTL  
may increase the minimum capital requirements from time to time by instruction.  
In accordance with Instruction CPO/B -2000/1, on Applications for Bank Licen ces, the minimum 
regulatory capital depends on the classification of the banking licen ce. Currently,  the minimum 
amount required for level A is US$ 6,000,000, for level B US$ 4,000,000 and for level C 
US$ 2,000,000.  As per Instruction CPO/B -2000/2 on Regulatory Capital, the minimum capital 
adequacy ratio of banks organized in Timor -Leste is 12 percent, i rrespective of the type of licen ce. 
- Key issues  
Regulation on bank licensing and supervision  
UNTAET Regulation No. 2000/8 on Bank Licensing and Supervision (the "Regulation ") is the main 
statute of the banking and financial sector of Timor -Leste. The Regulation sets forth the main rules 
and principles (which, in certain cases, are further developed by specific instructions  issued by 
the regulator) of the whole banking and fin ancial system. The Regulation deals with a variety of 
aspects relevant for banking institutions, including, amongst others (i) application, issuance, and 
cancelation of banking licen ces; (ii) corporate governance; (iii) professional secrecy; (iv) permitted  
financial activities; (v) recordkeeping rules; (vi) auditing; (vii) reports and inspection; 
(viii) infractions, penalties, and remedial measures; and , (ix) insolvency. The Regulation also 
provides for provisions applicable to shareholders, directors, agents and employees of 
banking  institutions.  
CBTL's instruction on the credit registry information system  
In 2009, the CBTL created the Credit Registry Information System (as per Instruction No. 3/2009) 
in Timor -Leste to provide banking and financial institut ions operating in the country with information 
relating to existing and prospective borrowers' credit at other banking and financial institutions. This 
system has been seen by the local market players as a vital instrument for risk assessment purposes. 
The participating entities are required to submit detailed data to the Credit Registry Information 
System related to each credit granted, such as (i) the borrower's details; (ii)  amount of credit 
granted; and , (iii) type of collateral (if any).  
Regulator's instructions, rules and guidelines  
Although many aspects relevant for the performance of banking and financial activities are still 
unregulated in Timor -Leste (especially when compared with more developed jurisdictions), there are 
several regul ations that have already been approved by the regulator through the issuance of 
instructions, rules, and guidelines.  
The main instructions approved  so far cover a range of issues typically addressed by financial 
regulators of other countries, including, (i ) capital and liquidity requirements, (ii) qualifications of 
directors, (iii) credit exposures, (iv) transactions with related person, banks, and affiliates, (v) loans 
to employees; (vi) reporting and public disclosure duties; (vii); auditing; (viii) equit y investment; 
(ix) asset classification; (x) internal control system; (xi) investment in real estate; and , 
(xii) recordkeeping.  
In February 2013, the CBTL issued Guidelines for the Licensing and Operations of Money Transfer 
Operators to encourage the sound  and efficient growth of remittance services in the economy and 
to reduce the risk of Money Transfer Operators (MTOs) in Timor -Leste becoming vehicles for/or 
victims of financial crime and suffering the consequential damages. Furthermore, in February 2015,  
the CBTL issued Guidelines on the Use of Agents in Branchless Banking. These Guidelines apply to 
(i) all Banks l icensed under the Regulation  (ii) Other Deposit Taking Institutions (ODTIs); and , 
(iii) individuals and other entities providing Agent Banking services.  
Product specific legislation  
With the exception of a few specific rules applicable to credit lending and the opening and 
maintenance of bank accounts/deposits, there is no banking/financial product -specific legislation yet 
in Timor -Leste.  This means that, as a rule, products offered by banking and financial institutions are 
only bound by the rules on contracts provided for in the general law, notably the CC of Timor -Leste.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Enforcement and i nvestigation  
The Regulation  empowers  CBTL to take actions  and impose  penalties  (as described  in the applicable 
law) against a financial institution, its directors, and principal shareholders in breach of 
(i) a regulatory provision; (ii) restriction or provision of an authorization issued by CBTL; and , 
(iii) any provision of an enforcement agreement entered into between the financial institution in 
question and the CBTL.  
Whenever a financial institution (or any of its directors or main shareholders) is deemed to have 
breached any of the regulatory rules, CB TL may, inter alia, (i) issue written warnings; (ii) execute 
an enforcement agreement with the board of directors providing for a program of remedial action(s); 
(iii) issue written orders to cease infractions and to u ndertake remedial actions; (iv)  impose fines; 
(v) suspend temporarily or dismiss directors; and , (vi) revoke the banking  licence. 
Complaints and r edress  
There are no specific rules on complaints and redress in Timor -Leste. In practical terms, however, 
consumers may address their complaints against banking institutions to CBTL, which then notifies 
the bank to provide information and share its views on the c ase. Upon completion of the investigation 
procedures, CBTL may simply close the file (if it finds that the financial institution complied with 
the applicable law and, therefore, the consumer had no legal grounds for complaint) or, if the 
complaint is uphel d by the CBTL, issue a written order to the financial institution to undertake 
remedial action(s), which may include redress or compensation.  
- Creditor h ierarchy  
Insolvency  
Pursuant to the Regulation, upon liquidation of a bank's assets, the secured claim s shall be paid to 
the extent of the realization of the security or, alternatively, the security shall be delivered to 
the secured creditor.  
The proceeds of other claims shall be paid in priority to all other debts, in the following order:  
(a) Necessary  and reasonable  expenses  incurred  by the receiver  and the CBTL,  including 
professional fees;  
(b) Deposits up to an amount not exceeding 10 tim es the average monthly wage 
per depositor;  
(c) The amount not paid to deposits under (b) above;  
(d) Other claims of creditors agains t the bank.  
If the amount available for payment for any class of claims listed above is insufficient to provide 
payment in full, such claims shall be paid in equal proportions. After payment of all claims filed, any 
remaining accepted claims that were not filed within  the time specified by instruction of the CBTL 
for the filing shall be paid. Any proceeds remaining after all claims of depositors and other creditors 
have been paid shall be distributed among the shareholders of the bank in accordance with their 
rights an d interests.  
Banking r esolution  
If CBTL determines that a bank is insolvent or must reasonably be expected to become insolvent 
within the next 90 days, the CBTL must take possession and control of that bank through a receiver. 
Under the law, the receiver m ay, inter alia , (a) continu e any operations other than (i)  deposit taking 
and (ii) credit lending to new customers; (b) discontinue  any operations; (c)  borrow money on an 
unsecured basis and; if not possible, on the security of assets of the bank; (d) cease or limit 
the payment of any obligation; (e) employ or dismiss any director, employee or professional advisor; 
(f) execute any instrument in the name of the bank, and , (g) initiate or defend and conduct in its 
name in any action or legal proceeding.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  - Bank secrecy  
Pursuant to the Regulation , the former and present directors, employees, and agents of banking and 
financial institutions shall keep secret all issues regarding the financial institution's activity and 
clients. The information subject to bank  secrecy includes, but is not limited to, customers' account 
balances, amounts, conditions, and use of proceeds of banks loans, customers' business 
relationships, and recipients and amounts of payments made by the bank. The secret information 
may only be d isclosed to (i) the CBTL (including its inspectors and the auditors appointed by it), 
(ii) external auditors of the banking institution, ( iii) judicial authorities,  and, (iv) foreign bank 
supervisory authorities, and , (v) when the disclosure is required fo r protecting the bank's interest 
in legal proceedings.  
- Financial promotion  
The laws and regulations  of Timor -Leste  do not regulate  financial  marketing  and promotional 
activities or provide for a definition thereof.  
- Market a buse  
The Regulation sets forth the principle pursuant to which banks shall refrain from entering into 
transactions or engaging in practices of any kind that would provide them, alone or together with 
others, a position of dominance on the money, capital, or foreign exchange market s. In accordance 
with said Regulation, banks shall also refrain from engaging in manipulative devises or practices 
that could result in an unfair advantage for themselves or for third parties. In addition, banks shall 
not require any person to contract to receive any financial service or products from an affiliate as 
a condition of being permitted to contract with the bank itself.  
- Corporate g overnance  
Pursuant to the Regulation, banks shall be managed by a governing board and shall have an audit 
committee . Banks are required to have a risk management committee or separate credit and asset 
and liability management committees. The governing board of a bank shall have an uneven number 
of members with a minimum of three and a maximum of seven.  
- Remuneration a nd bonuses  
Pursuant to Instruction CPO/B -2001/9 on Remuneration of Members of the Governing Board and of 
Senior Management of Newly Licen ced Banks, the remuneration of the governing board and senior 
management of a newly incorporated banking institution is  subject to prior approval of the CBTL for 
the first three years of the bank's operations.  In general terms, CBTL shall not approve the proposed 
remuneration of the members of the governing board and the senior management if it includes, 
inter alia, (i) th e ability to acquire a different class of shares of the bank with greater voting rights 
in comparison with the voting rights attached to other classes of shares; (ii) the ability to acquire 
shares of the bank at an original issue price lower than the price  paid by other investors; or , (iii) the 
proposed remuneration raises any other supervisory concerns.  
Also, the proposed remuneration shall not be approved by the CBTL if it (i) is expected to adversely 
affect the bank's future earnings prospects or financi al condition; or , (ii) is not in line with 
the person's experience and competence. In the specific case of the members of the governing 
board, the CBTL shall also not approve the proposed remuneration if it: (i) is not based on meetings 
attended; (ii) exceeds the salary of the senior management of the bank; or , (iii) includes bonuses.  
Regarding senior management, the remuneration (i) shall be in line with remuneration paid to 
individuals in similar positions with similar qualifications at banks engaging  in similar financial 
activities; and (ii) shall not include incentive compensations which are not linked to the bank's 
long-term business strategy and the overall financial condition of the bank. Remuneration linked to 
volume, short -term performance or pr ofitability, or excessive risk -taking, shall not be approved by 
the CBTL.  
- Acceptance of deposits and other repayable funds from the public  
In accordance with the applicable Regulation and auxiliary legislation, currently there are two types 
of institutio ns entitled to accept deposits and other repayable funds from the public, as follows:  
• Banks; and , 
• Other deposit -taking Institutions (ODTIs) as licen sed in accordance with Instruction 
No. 6/2010.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  The opening and maintenance of bank accounts/deposits are no t yet highly regulated in Timor -Leste. 
The relevant agreements are mainly subject to the few rules provided for in:  
• Instruction No. 03/2003, on the Opening and Maintenance of Deposit Accounts – which refers 
to the mandatory documents and information to be p rovided under a Bank Account 
Agreement; and  
• Instruction No. CPO/B -2001/3, on the Notification of Terms and Conditions of Deposits and  
Credits – which addresses the mandatory information Banks must provide to its customers in 
respect of the terms and conditions applicable to services rendered under a bank deposit  
agreement.  
The CBTL is working on a new regulatory framework on the opening and maintenance of bank 
accounts aimed at reinforcing customers ' rights. The new framework is expected to enter into force 
on 1 January 2016.  
- Lending of all types,  including,  inter alia,  consumer  credit,  mortgage  credit, factoring, 
and financing of commercial transactions  
There is no legislation that specifically add resses different types of lending, therefore,  the comments 
below  apply  to any type of lending,  i.e., regardless  of whether  the underlying transaction is consumer 
credit, mortgage credit, factoring, or financing of commercial transaction.  
- Loan agreement f ormat  
There is no standard loan agreement format in Timor -Leste. The CC of Timor -Leste, as approved by 
Law No. 10/2011 of 14 September 2011, sets forth the general principle of "contractual freedom, " 
according to which parties may, subject to any applicable stat utory limits, freely establish 
the contents of contracts, and also enter into contracts different from the types expressly provided 
for in law (Article 340 of the CC). Thus, the main principle is that the terms and conditions of a loan 
agreement can be fre ely agreed by the parties provided, however, the purpose of the financing must 
not be contrary to public order or ethical principles (Article 271 of the CC).  
- Mandatory c lauses  
Under Instruction on Credit Documentation (Instruction No. CPO CPO/B -2001/8), credit agreements 
shall contain, at least, the following elements: (i) the date and principal amount of the credit; 
(ii) the purpose of the credit; (iii) the interest rate; (iv) repayment schedule, including the maturity 
date; (v) other terms and condition s of the credit; (vi) description of any collateral and the legal 
right to the collateral in the event of the borrower 's default; (vii) any insurance required to be 
contracted by the borrower; and , (viii) date(s) on which the credit amounts will be made av ailable 
to the borrower.  
- Form of loan agreements  
As per Decree -Law No. 45/2012 of 21 November 2012, on the Form of Loan Agreements, loan 
agreements entered into by banking institutions organized in Timor -Leste may be executed by 
a private written documen t. 
- Governing l aw 
The CC contains a number of rules on choice of law and conflict of law issues that must be taken 
into account when reviewing a loan. Article 40 of the CC determines that the parties may freely 
choose the law governing their agreements pr ovided that such choice of law corresponds to a serious 
interest of the parties or has a connection with an element of the contract that is relevant for 
purposes of international private law ( e.g., law of the residence, head offices, or place of business 
of one of the parties; law of the place where the contract will be performed; law of the place where 
the contract will be executed; law of the location of any immovable property).  
Based on the foregoing, and as a matter of principle, loan agreements to be e ntered into between 
banks and its customers in Timor -Leste should be governed by Timor -Leste 's law, unless the nature 
of the elements of the specific transaction justifies the choice of a foreign law. Under Timor -Leste 's 
law, local courts will not accept a  foreign law chosen by the parties if it involves a breach of 
a fundamental principle of public order, or mandatory provisions of the applicable local laws. Articles 
20 and 21 of the CC state that (i) the choice of law is deemed irrelevant if such choice a rises from 
a fraudulent intention to avoid the application of the law, which, in other circumstances would apply; 
and (ii) provisions of foreign law are not applicable if they breach the fundamental principles of WT/ACC/SPEC/TLS/5/Rev.1  
 
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  public order of Timor -Leste. However, there  is no statutory definition of domestic or international 
public  order. This means that the contents of such a concept will be determined by the judge on 
a case-by- case basis. Some examples of public policy principles and mandatory rules include formal 
loan agreement requirements, rules on collateral, interest -related rules, and minimum requirements 
of loan agreements.  
- Interest r ate 
The CC sets forth limits for charging interest on a loan. Pursuant to Article 1066 of the CC, an agreed 
interest r ate cannot exceed the statutory interest rate plus 3% if the loan is secured in rem, or 5% 
if the loan is unsecured in rem. The default interest rate cannot exceed the statutory interest rate 
plus 7% if the agreement is secured in rem, or 9% if the agreeme nt is unsecured in rem. Any interest 
rate in excess of the above limits is deemed usurious and null and void. In effect, the provision of 
Article  1066 of the CC is not applicable, as the government has not yet approved a statutory interest 
rate. Notwithsta nding, the agreed interest rate should not breach the principle of good faith by 
creating an  excessive and unjustified advantage to the lender, considering the specific circumstances 
of the market and the loan (Articles 273 to 275 of the CC).  
- Financial leasing  
In accordance with Section 24.3 (d) of the Regulation, Class A and B Banks are entitled to provide 
financial leasing services. There are no other relevant legal provisions specifically addressing 
the performance of financial leasing services.  
- All payment and money transmission services  
In accordance with Decree -Law No. 17/2015 of 24 June 2015, on the National Payments System, 
"Payment Services" include:  
• Services providing for the deposit and withdrawal of cash;  
• Execution of payments;  
• Issuance or pu rchase of payment instruments;  
• Provision of funds transfer services, and  
• Any other money transfer ancillary services that also involve the issuing of electronic money 
and electronic money instruments (but excluding the provision of internet or communicatio ns 
services or network access).  
In accordance with Article 7 of Decree -Law No. 17/2015, no individual or corporate body may provide 
payment services or operate one of the Systems (which include Payment, Clearing, or Settlement 
System) without being duly authorized by the CBTL.  
As per Section 24.2 of the Regulation, a banking licen ce entails:  
• Payment and collection services; and  
• Issuance and management of means of payment (including payment cards, travelers' checks  
and bankers' drafts).  
- Guarantees and c ommitments  
There  are no other  relevant  legal provisions  specifically  addressing  the provision  of bank 
guarantees or similar commitments.  
- Trading for own account or for account of customers  
Trading for own account or for account of customers, whether on an exchange, in an  over-the-
counter market, or otherwise, the following:  
a. Money market instruments (checks, bills, certificate of deposits, etc.)  81339**  
b. Foreign exchange  81333  
c. Derivati ve products including, but not limited to, futures and options  81339**  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  d. Exchange  rate and interest rate instruments, including products such as 
swaps and forward rate agreements  81339**  
e. Transferable securities  81321*  
f. Other negotiable instruments and financial assets, including bullion  81339**  
In accordance with Section 24 of the Regulation, banks are entitled to:  
• Buy and sell foreign exchange for cash for the account of a customer;  
• Borrow funds and buy and sell for a bank's own account or for the account of customers 
(excluding  underwriting)  of: (i) money  market  instruments  (including,  checks,  bills of 
exchange and certificates of deposit); (ii) debt securities; (iii) futures and options relating to 
debt securities or interest rates; or (iv) interest rate instruments (only Class  A and B Banks).  
There are no  other relevant  legal provisions specifically addressing the services related with trading 
for own account or for account of customers.  
- Participation issues of all kinds of securities, including underwriting and placement as 
agent (whether publicly or pr ivately) and provision of service related to such issues  
As per Section 24.4 of the Regulation, only Class A Banks are entitled to provide services in 
connection with underwriting and distribution of debt and equity securities and dealing with equity 
secur ities. There are no other relevant legal provisions specifically addressing the services related 
with trading for one 's own account or for the account of customers.  
Instruction CPO/B -2001/2 on Equity Investments of Banks sets forth that no bank shall hold (directly 
or indirectly) an equity interest in an entity engaged in activities other than financial activities that: 
(i) represents a significant interest; or (ii) exceeds its net current value, the  equivalent of 15% of 
the regulatory capital of the bank; or (iii) when the aggregate net current value of all of its equity 
interests in such entity exceeds the equivalent of 100% of the regulatory capital of the bank, without 
obtaining prior written authorization from CBTL. Furthermore, banks are not allowed to  hold (directly 
or indirectly) equity securities of a bank organized in Timor -Leste.  
Finally, the above mentioned limitations and restrictions do not apply to (i) equity interests that 
have been acquired by a bank in lieu of repayment of credit granted by such bank (which can cannot 
exceed one year from the date they are acquired or within such longer time period as the CBTL may 
approve in response to a written request by the bank) and (ii) equity interests held by the bank as 
an agent in securities underta king or brokerage or investment portfolio management.  
- Money b roking  
In accordance with Section 24.3 (c) of the Regulation, Class A and B Banks are entitled to provide 
money broking services.  There are no other relevant legal provisions specifically addressing 
the performance of money broking services.  
- Asset management such as cash or portfolio management, all forms of collective 
investment management, pension fund management, custodial depository and trust 
services  
In accordance with S ection 24.4 (a) and (b) of the Regulation, only Class A Banks are entitled to 
provide (i) trust services, including the investment and administration of funds received in trust and 
administration of securities; and (b) provide services as an investment por tfolio manager or 
investment adviser.  There are no other relevant legal provisions specifically addressing 
the performance of such services.  
- Settlement and clearing services for financial assets, including securities, derivative 
products, and other negot iable instruments  
According to Law  No. 5/2011,  the CBTL is responsible  for the licensing,  registration,  and supervision 
of clearing, payment and securities settlement systems. The same rule flows from Decree -Law 
No. 17/2015 of 24 June 2015, on the National  Payments System, pursuant to which banks are 
required to obtain authorization from the CBTL to operate Payment, Clearing, and Settlement 
Systems.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  As per Article 9.1 of Decree -Law No. 17/2015, all system operators shall lay down written rules 
covering the administration, management, and operation of the systems they operate. Such rules 
shall cover, at least, (i) liquidity management, (ii) credit risk and settlement, (iii) when a  payment 
instruction and settlement are final, (iv) governance and access, (v) e mergencies and operational 
risk, (vi) rights and duties of system participants and operators. However, no legal provisions have 
yet been approved specifically addressing the performance of services such as settlement and 
clearing services for financial ass ets, including securities, derivative products, and other negotiable 
instruments.  
- Advisory and other auxiliary financial services on all the activities listed in article 1b of 
MTN/TNC/W/50, including credit reference and analysis, investment and portfoli o 
research and advice, advice on acquisitions and corporate restructuring and  strategy  
As per Section 24.3 of the Regulation, Class A and B Banks are entitled to provide services as 
a financial agent or consultant, except with respect to investment advisory services, which can only 
be performed by Class A Banks. There are no other relevant legal provisions specifically addressing 
the performance of advisory and other auxiliary financial services.  
Health Related a nd Social Services  
Hospital services  
Decree -Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on the licensing of private hospitals. This statute does not contain any requirements as to 
nationality of the investors or responsible persons. N otwithstanding, the rules on 
licensing/accreditation of health professionals must also be followed.  
Other Human Health Services (other than 93191)   
Decree -Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on the licensing  of private health services, including clinics, dental clinics, etc. This statute does 
not contain any requirements as to nationality of the investors or responsible persons. 
Notwithstanding, the rules on licensing/accreditation of health professionals mus t also be 
followed.  
Tourism and Travel Related Services  
Timor -Leste has not passed any laws specifically regulating tourism and travel -related services. 
Notwithstanding , Decree -Law No. 24/2014 of 3 September 2014 sets forth the general 
framework  for a tour ism policy in Timor -Leste, which includes the general principles to be applied 
to the sector.  
Hotels and restaurants (including catering)  
Regarding restaurants, Decree -Law No. 7/2009 of 15 January 2009, regulates the licensing 
procedure and the activity of  restaurants and similar establishments serving food and  beverages , 
such as bars, nightclubs and traditional food and beverages establishments. The statute also 
establishes the specific requirements in order to obtain a licen ce. Prior to the attribution of  
a licence, the establishment is subject to inspection.  
Recreational, Cultural and Sporting Services  
Decree -Law No. 10/2011 of 16 March 2011 sets forth the Legal Framework of Public Utility of 
Sports Federations . Decree -Law No. 18/2014 of 24 July 2014 regulates Sport Clubs and 
Companies. Decree -Law No. 6/2009 provides for the Regulation of Recreational and Social 
Gambling  and includes the applicable licensing requirements.  
Transport services  
Maritime transport ser vices  
Timor -Leste has not passed any specific laws regulating maritime transport services. However, 
the Ministry of Public Works, Transports and Communications is drafting regulations  for these 
services with the assistance of the German Institute  for Inte rnational Cooperation,  GIZ. WT/ACC/SPEC/TLS/5/Rev.1  
 
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  Air transport services  
This sector is under the supervision of Timor -Leste Airports and Air Navigation Administration 
(TLAANA). Timor -Leste has enacted Decree -Law No. 1/2003, of 10 March 2003, which sets forth 
the general legal framework applicable to air transport servi ces. Decree -Law No. 5/2006 of 
1 March  2006, establishes the conditions, requirements, and legal procedure for the attribution of 
certification for commercial air transport companies to carry out thei r activities. This certificate  is 
granted by TLAANA.  
Road transport services  
Decree -Law No. 2/2003 of 10 March 2003 sets forth the general legal fr amework applicable to 
the road transport system, defining its main purposes and general principles. The stat ute also 
establishes some rules on private and public transport to be further regulated (note that no other 
laws or regulations have been enacted in respect to this sector).  
Pursuant to Article 15 of Decree -Law No. 2/2003, access to the profession of publi c road transporter 
is only available to (i) Timor -Leste nationals; (ii) companies in which Timorese nationals hold at 
least a 50% participating interest; or (iii) foreigners enjoying the same rights and treatment as 
Timor -Leste nationals. This provision al so indicates that an interested person fulfilling one of 
the abovementioned conditions has to be registered with the Road Transporters National Registry, 
which is yet to be established.  
- Passenger transportation  
Article 16 of Decree -Law No. 2/2003 provides that regular urban and local transportation is a  public 
service and may be carried out through the granting of a licen ce or concession by the  Ministry of 
Public Works, Transport and Communications.  Inter-urban passenger transportation may be carried 
out privately, in which case the risk and cost thereof shall be fully borne by the transport companies. 
An authorization from the Ministry of Public Works, Transport and Communications for each route 
operated is also required,  as per Article 17 of Decree -Law No. 2/2003.  
- Freight transportation  
Article 20 of Decree -Law No. 2/2003 determines that the legal framework to be regulated shall 
provide for competition and transport safety.  
Pipeline transport  
Decree -Law No. 20/2008 of 19 June 2008, which created the National Petroleum Authority (NPA), 
and Decree -Law No. 1/2012 of 1 February 2012, on the downstream sector, establish that pipeline 
transportation of fuels and other petroleum products is subject to licensing by the NPA. Dec ree-Law 
No. 1/2012 further foresees the approval of more detailed regulations on pipeline transport of 
petroleum products; however, the NPA has yet to approve any such regulations.  
- Transportation of fuel s 
Decree -Law No. 20/2008 of 19 June 2008, which cre ated the NPA and Decree -Law No. 1/2012, of 
1 February 2012, on the downstream sector, establish that transportation of fuels is subject to 
licensing by the NPA. Decree -Law No. 1/2012 further foresees the approval of more detailed 
regulations on the transpo rt of petroleum products; however, to date the NPA has yet to approve 
any such transport regulations.  
There are no regulations with respect to services sectors/sub -sectors not mentioned in this Annex.   
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 25 
Bilateral Agreement s 
AGREEMENTS  DATE OF RATIFICATION  
Agreement with Holy Sea  Parliament Resolution No. 18/11 November  2015 
Portugal – to create the Portuguese Scholl  Parliament Resolution No. 09/ 5 August  2015 
Germany – Cooperation agreement  Parliament Resolution No. 5/7 May  2008 
Indonesia – Visa exemption for diplomatic passports  Parliament Resolution No. 6/ 18 June  2014 
Indonesia  - Traditional border crossing and regulated 
markets  Parliament Resolution No. 21/ 2 May  2009 
Japan – Cooperation agreement on training and 
formation  Parliament Resolution No. 5/26 March  2014 
Spain – Cooperation agreement  Parlia ment Resolution No. 19/14 July 2010 
Australia – Timor Sea Treaty between the Government 
of East Timor and the Government of Australia     Parliament Resolution No. 2/ 1 April  2003 
Australia – Treaty on Certain Maritime Arrangements  Parliament Resolution No. 4/8 March  2007 
Australia – Unitization Agreement  Parliament Resolution No. 5/ 8 March  2007 
Australia – Timor Sea  Parliament Resolution No. 5/08 March  2007 
Brazil – Cooperation agreement  Parliament Resolution No. 9/11 November  2004 
USA – Cooperation agreement  Parliament Resolution No. 2/ 3 January 2003 
Angola – General Agreement on Economic, Commercial, 
Technical, Scientific and Cultural Cooperation between 
the Democratic Republic of Timor -Leste and the 
Republic of Angola  Government Resolution No. 12/05 August  2009 
Bilateral Investment Treaties  
COUNTRY  TREATY  
Portugal  Agreement Concerning the Encouragement and Reciprocal Protection of Investments, approved 
by Government Resolution No. 2/ 2004 of  28 January  2004, entered into force on 7 April 2004  
Qatar  Signed on 10/08/2005, (not ratified)  
Qatar  Agreement between the Government of the Democratic Republic of Timor -Leste an d the 
Government of the State of Qatar for Reciprocal Promotion and Protection of Investments, 
signed on 21 January 2012.  
Kuwait  Agreement Between the Government of the Democratic Republic of Timor -Leste and the 
Government of State of Kuwait for the Promotion and Reciprocal Protection of Investments, 
signed on 1  June 2007 
Kuwait  Trade Co -operation Agreement between the Government of the Democratic Republic of Timor -
Leste and the Government of the State of Kuwait, signed on 1  June 2007 
Germany  Treaty  between the Federal Republic of Germany and the Democratic Republic of Timo r-Leste 
Concerning the Encouragement and Reciprocal Protection of Investments, Gover nment 
Resolution No. 8/ 2011 of  16 March  2011, signed on 21 January 2012 (not ratified)  
Vietnam  Trade Agreement between the Government of the Democratic Republic of Timor -Leste and the 
Government of the Socialist Republic of Vietnam, signed on 4  September 2013 
Cambod ia MoU on Economic, Commercial and Technical Cooperation between the Government of the 
Democratic Republic of Timor -Leste and the Government of the Kingdom of Cambodia, signed 
on 5 September 2013 
USA Agreement for Economic and Technical Cooperation between the Government of the United 
States of America and the Government o f the Democratic Republic of Timor -Leste, approved by 
Parliament Resolution No. 19/  24 December  2004 
 
 
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 26 
State of Play in Timor -Leste's ASEAN Accession  
Internal consolidation  
• Progressive legislative reforms intended to align with ASEAN requirements have been enacted 
since 2015. The VIII Constitutional Government 's work program (2018 -2023) – debated and 
approved by the National Parliament – states the intention to (page 131) 'reinforce relations 
with ASEAN member states and continue to pr omote national reforms that align with ASEAN 
policies and rules'.  
• Government Resolution No. 14/2019 states that legislative reforms overseen by the Ministry 
of Legal Reform and Parliamentary Affairs must facilitate ASEAN accession by considering 
alignment with ASEAN requirements.  
• The Timor -Leste ASEAN Mobilisation Program (TLAMP) and the Critical Elements for Accession 
(CEA) were launched in 2019. TLAMP is an ongoing process with long -term objectives towards 
meeting ASEAN requirements, while the CEA consis ts of key ASEAN agreements which can be 
implemented within a reasonable timeframe (short - and medium -term objective).  
• The establishment of an inter -ministerial working group for the three ASEAN community 
pillars, and the ASEAN Economic Core Team. Several i n-country and overseas training s have 
been provided and will continue to be provided to the member of the working groups.  
Bilateral Engagement  
• "Diplomacy Tours " were carried out by the Minister of Foreign Affairs to ASEAN Members 
States (AMS) in 2019 , continuing until now through virtual meetings and includ ing regular 
meetings with AMS resident ambassadors/representatives in Dili.   
• Appointment of Timor -Leste Permanent Representative to the ASEAN Secretariat in Jakarta to 
facilitate bilateral engagement with  AMS both at the political and technical level.   
ASEAN Fact -Finding Mission (FFM):  
• In September 2019, ASEAN sent a Fact -Finding Mission to Dili on the Political -Security 
community pillar to assess Timor -Leste's commitment, capacity, and technical readiness  to 
implement ASEAN agreements as well as participate in ASEAN meetings and other relevant 
activities.  
• Due to the COVID -19 pandemic, ASEAN Senior Officials held virtual meetings with relevant 
line-ministries and agencies on the Socio -Cultural pillar in Oct ober 2020. Likewise, a virtual 
meeting on the Economic pillar took place between 7 -9 December 2020 which assessed in -
depth the  implication of Timor -Leste's accession to ASEAN 's economic agreements, national 
strategic plans, and policy implementation.  
• The A SEAN Socio -Cultural and Economic Community Pillar have concluded the FFM on Timor -
Leste accession from 5 to 9 July and 18 to 21 July 2022, respectively.  
• The ASEAN FFM on Political -Security Community Pillar was conclu ded in 2019.  
• The ASEAN FFM delegations and the ASEAN Secretariat will prepare the FFM report and submit 
it to the Senior Economic Official Meeting (SEOM) meeting in August 2022. The SEOM will 
review and pro vide a comprehensive assessment r eport for consideration  to the ASEAN 
Economic Ministers (AEM) meeting in September 2022 .  
• The ASEAN Coordinating Council Working Group (ACCWG) on Timor -Leste 's ASEAN 
Membership Application, which consist of Senior Officials  from Economic, Socio -Cultural, and 
Political -Security community pillar will meet in October 2022 to consolidate the three FFM 
assessment reports and the respective ASEAN Ministerial meeting 's outcome for the ASEAN 
Summit in November 2022.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  • ASEAN admits new  members based on consensus within the ASEAN Summit upon the ASEAN 
Coordinating Council 's (ACC) recommendation (ASEAN Charter, Article 6.3).   
• At the ASEAN Summit on 11 November 2022 , ASEAN leaders, based on the Fact Finding 
Missions on all pillars,  issued a statement on the Application of Timor -Leste for ASEAN 
membership, agreeing , in principle, to admit Timor -Leste  to be the 11th member of ASEAN, to 
grant Timor -Leste an observer status and to allow its participation in all ASEAN meetings 
including the Summ it plenaries  and to formalize an objective criteria -based Roadmap for 
Timor -Leste's full membership including based on the milestones identified in the reports of 
the Fact -Finding Missions conducted by the three ASEAN Community pillars.  
Next steps:  
The 32nd ASEAN Coordinating Council (ACC) meeting, held on February 2023, adopted the Guidelines 
for the implementation of the Observer Status granted to Timor -Leste looks forward to the adoption 
of the roadmap on the 42nd Summit in May 2023 during Indonesian Chairmanship. ASEAN member 
states, ASEAN external partners and ASEAN Secretariat would further work with Timor -Leste for the 
implementation of the roadmap until obtaining its full Membership. Based on the recommendatio ns 
of the Fact -Finding Missions, capacity building on ASEAN Economic Community related issues have 
started.  
  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX 27 
Timor -Leste's m embership in the multilateral economic organizations  and 
trade -related programs of other multilateral organizations  
• Asian Development Bank (ADB);  
• Community of Portuguese Language Countries (CPLP);  
• Food and Agricultural Organization (FAO);  
• International Bank for Reconstruction and Development (IBRD);  
• International Centre for Settlement of Investment Disputes (ICSID);  
• Internati onal Development Association (IDA);  
• International Labour Organization (ILO);  
• International Finance Corporation (IFC);  
• International Monetary Fund (IMF);  
• International Telecommunication Union (ITU);  
• International Court of Justice (ICJ);  
• International Marit ime Organization (IMO);  
• Multilateral Investment Guarantee Agency (MIGA);  
• United Nations (UN);  
• United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP);  
• World Customs Organization (WCO);  
• World Health Organization (WHO);  
• World Intellectual Property Organization (WIPO);  
• World Organization for Animal Health (OIE); and, 
• World Tourism Organization.  
 
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  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  APPENDIX  
[Draft Decision ] 
ACCESSION OF THE DEMOCRATIC REPUBLIC OF TIMOR -LESTE  
Decision of […]  
 The [Ministerial Conference][General Council],  
 Having regard to  paragraph 2 of Article  XII and paragraph 1 of Article  IX of the 
Marrakesh  Agreement Establishing the World Trade Organization (the "WTO  Agreement"), and the 
Decision -Making Procedures under Artic les IX and XII of the WTO  Agreement agreed by the General 
Council (WT/L/93),  
 [Conducting  the functions of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement,]  
 Taking note  of the applicat ion of the Democratic Republic of Timor -Leste for accession to the 
WTO Agreement dated [ 7 April 2015 ], 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Democratic Republic of Timor -Leste to the WTO  Agreement and having prepared a 
Protocol on the Accession of the Democratic Republic of Timor -Leste, 
 Decides  as follows:  
 The Democratic Republic of Timor -Leste may accede to the WTO  Agreement on the terms and 
conditions set out in the Protocol annexed to  this Decision.  
 
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 WT/ACC/SPEC/TLS/5/Rev.1  
 
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  DRAFT PROTOCOL  ON THE ACCESSION OF THE DEMOCRATIC REPUBLIC OF TIMOR -LESTE  
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the [Ministerial Conference][General Council] of the WTO accorded under Article  XII of the 
Marrakesh  Agreement Establishing the World Trade Organization (hereinafter refer red to as the 
"WTO  Agreement"),  and the Democratic Republic of Timor -Leste (hereinafter referred to as  "Timor -
Leste"), 
 Taking note  of the Report of the Working Party on the Accession of Timor -Leste to the 
WTO Agreement reproduced in document WT/ACC/TLS /[..], dated […] (hereinafter referred to as the 
"Working Party Report"),  
 Having regard  to the results of the negotiations on the accession of Timor -Leste to the 
WTO Agreement,  
 Agree as follows:  
PART I - GENERAL  
1. Upon entry into force of this Protocol pursuant to paragraph 8, Timor -Leste accedes to the 
WTO Agreement pursuant to Article  XII of that  Agreement and thereby becomes a Member of 
the WTO.  
2. The WTO  Agreement to which Timor -Leste accedes shall be the WTO  Agreement, including the 
Explanatory Notes to that  Agreement, as rectified, amended or otherwise modified by such legal 
instrume nts as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments referred to in paragraph  […] of the Working Party 
Report, shall be an integral part of the WTO  Agreement.  
3. Except as otherwise provided for in paragraph […] of the Working Party Report, those 
obligations in the Multilateral Trade  Agreements annexed to the WTO  Agreement that are to be 
implemented over a period of time starting with the entry into force of that  Agreemen t shall be 
implemented by Timor -Leste as if it had accepted that  Agreement on the date of its entry into force.  
4. Timor -Leste may maintain a measure inconsistent with paragraph  1 of Article  II of the GATS 
provided that such a measure was recorded in the l ist of Article  II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article  II Exemptions.  
PART II - SCHEDULES  
5. The Schedules reproduced in the Annex to this Protocol shall become the Schedule of 
Concessions and Com mitments annexed to the General  Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT  1994") and the Schedule of Specific Commitments annexed to 
the General  Agreement on Trade in Services (hereinafter referred to as "GATS") relating to  
Timor -Leste . The staging of the concessions and commitments listed in the Schedules shall be 
implemented as specified in the relevant parts of the respective Schedules.  
6. For the purpose of the reference in paragraph 6(a) of Article  II of the GATT  1994 to  the date 
of that  Agreement, the applicable date in respect of the Schedule of Concessions and Commitments 
annexed to this Protocol shall be the date of entry into force of this Protocol.  
PART III - FINAL PROVISIONS  
7. This Protocol shall be open for accep tance, by signature or otherwise, by Timor -Leste until […] 
or such later date as may be decided by the General Council.  
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Timor -Leste.  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  9. This Protocol shall be deposited with the Director -General of the WTO.  The Director -General 
of the WTO shall promptly fur nish a certified copy of this Protocol and a notification of acceptance by 
Timor -Leste thereto pursuant to paragraph 7 to each Member of the WTO and to Timor -Leste.  
10. This Protocol shall be registered in accordance with the provisions of Article  102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single copy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule annexed hereto may specify that it is authentic in 
only one of these langu ages, and the Working Party Report is authentic in English only.  
 
_______________  WT/ACC/SPEC/TLS/5/Rev.1  
 
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  ANNEX  
SCHEDULE […] – TIMOR -LESTE  
Authentic only in the English language.  
(Circulated in document WT/ACC/TLS /../Add.1)  
_______________  
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES  
LIST OF ARTICLE  II EXEMPTIONS  
Authentic only in the English language.  
(Circulated in document WT/ACC/TLS /../Add.2)  ] 
 
__________