RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CGR/4/Rev.2 
20 October 2008 
 (08-5033) 
Working Party on the 
Accession of Montenegro  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON THE  
ACCESSION OF MONTENEGRO  
TO THE WORLD TRADE ORGANIZATION 
 
Revision   WT/ACC/SPEC/CGR/4/Rev.2 
 Page i 
 
 
 TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................2  
- Monetary and Fiscal Policy..................................................................................................... .2 
- Foreign Exchange and Payments ............................................................................................4  
- Investment Regime.............................................................................................................. ......6  
- State Ownership and Privatization, State-Trading Entities .................................................8  
- Pricing Policies ............................................................................................................... .........11  
- Competition Policy............................................................................................................. .....13  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................14  
- Powers of Executive, Legislative and Judicial Branches of Government ..........................14  
- Authority of Sub-Central Governments ...............................................................................17  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................18  
- Trading Rights ................................................................................................................. .......18  
A. IMPORT REGULATIONS....................................................................................................24  
- Ordinary cust oms duties ........................................................................................................ 24 
- Other duties and charges....................................................................................................... .26 
- Tariff rate quotas, tariff exemptions.....................................................................................26  
- Fees and charges for services rendered.................................................................................27  
- Application of internal taxes to imports ...............................................................................29  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............33  
- Customs valuation.............................................................................................................. .....38  
- Rules of origin ................................................................................................................ .........40  
- Other customs formalities ...................................................................................................... 41 
- Preshipment inspection ......................................................................................................... .42 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................42  
B. EXPORT REGULATIONS ...................................................................................................43  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........43  
- Export rest rictions ............................................................................................................ ......44  
- Export subsidies ............................................................................................................... .......45  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................46  
- Industrial policy, including subsidies....................................................................................46  WT/ACC/SPEC/CGR/4/Rev.2 
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 - Technical barriers to trade, standards and certification.....................................................47  
- Sanitary and phytosanitary measures...................................................................................53  
- Trade-related investment measures ......................................................................................59  
- Free zones, special economic areas........................................................................................59  
- Government procurement......................................................................................................61  
- Transit........................................................................................................................ ..............63  
- Agricultural policies.......................................................................................................... ......63  
(a) Imports........................................................................................................................ .............63  
(b) Exports........................................................................................................................ .............64  
(c) Internal policies.............................................................................................................. .........64  
- Trade in ci vil aircraft........................................................................................................ ......65  
- Textiles regime ................................................................................................................ ........65  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................65  
- GENERAL........................................................................................................................ .......65  
- Industrial property protection...............................................................................................65  
- Responsible agencies for policy formulation and implementation .....................................66  
- Participation in international intellectual property agreements ........................................67  
- Application of national and MFN treatment to foreign nationals......................................68  
- Fees and taxes................................................................................................................. .........68  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................69  
- Copyright and related rights..................................................................................................6 9 
- Trademarks, including  service marks...................................................................................71  
- Geographical indications, including appellations of origin.................................................72  
- Industrial designs............................................................................................................. .......74  
- Patents........................................................................................................................ ..............75  
- Plant variety protection....................................................................................................... ...77 
- Layout designs of integrated circuits ....................................................................................77  
- Requirements on undisclosed information, including trade secrets and test data............77  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS......................................................................................................................... ..........78  
- ENFORCEMENT...................................................................................................................7 8 
- Civil judicial procedures and remedies.................................................................................78  
- Provisional measures ........................................................................................................... ...80 
- Administrative procedures and remedies.............................................................................80  
- Special border measures........................................................................................................ .81  WT/ACC/SPEC/CGR/4/Rev.2 
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 - Criminal procedures............................................................................................................ ...82 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................83  
VII. TRANSPARENCY .................................................................................................................86  
- Publication of information on trade......................................................................................86  
- Notifications.................................................................................................................. ...........87  
VIII.  TRADE AGREEMENTS .......................................................................................................87  
CONCLUSIONS .................................................................................................................... ..............90  
ANNEX 1 ........................................................................................................................ ......................91  
ANNEX 2 ........................................................................................................................ ......................93  
 
  WT/ACC/SPEC/CGR/4/Rev.2 
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 I. INTRODUCTION 
1. The Government of Montenegro applied for accession to the World Trade Organization on 
23 December 2004.  At its meeting on 15 Februa ry 2005, the General Council established a Working 
Party to examine the application of the Governme nt of Montenegro to accede to the World Trade 
Organization under Article XII of the Marrakesh Ag reement establishing the WTO.  The terms of 
reference and the membership of the Working Party are reproduced in document WT/ACC/CGR/2/[Rev.10].   
2. The Working Party met on 4 October 2005 under the Chairmanship of H.E. Mr. A. Gosnar 
(Slovenia); and on 5 July 2006; 27 February and 19 Ju ly 2007; and 28 February, 18 July and [...] 2008 
under the Chairmanship of H.E. Mr. A. Logar (Slovenia).   
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Montenegro (WT/ACC/ CGR/3 and Addendum 1 ), the questions submitted 
by Members on the foreign trade regime of Monteneg ro, together with the replies thereto, and other 
information provided by the authorities of Montenegro (WT/ACC/CGR/4 and Corrigendum 1; WT/ACC/CGR/7; WT/ACC/CGR/8; WT/ACC/CGR/10; WT/ACC/CGR/12 and Revisions 1 and 2; 
WT/ACC/CGR/13; WT/ACC/CGR/14; WT/ACC/CG R/15 and Addendum 1; WT/ACC/CGR/16 
to 21; WT/ACC/CGR/23; WT/ACC/CGR/ 24 and Addendum 3; WT/ACC/CGR/26; 
WT/ACC/CGR/27 and Addendum 1; WT/ACC/CGR/28;  WT/ACC/CGR/30; and [...]) including the 
legislative texts and other documentation listed in Annex 1.   
INTRODUCTORY STATEMENTS 
4. The representative of Montenegro said that WT O accession was one of the main priorities of 
her Government, and Montenegro intended to accomp lish the process in the shortest possible time.  
She noted that although WTO rules and procedures ha d allowed Montenegro to initiate the accession 
process under the provisions of Article XII of th e Marrakesh Agreement as a "separate customs 
territory", Montenegro had - on the basis of a referendum held on 21 May 2006 - become a fully 
independent State assuming full responsibility for its political, security and economic system.  Montenegro had become a Member of the Unite d Nations on 28 June 2006, and had joined all 
relevant UN-related internationa l organizations.  On 4 December 2006, the Government had deposited 
a declaration with WIPO regarding the continued applicability of all relevant WIPO international 
conventions and treaties.  WT/ACC/SPEC/CGR/4/Rev.2 
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 5. On 3 June 2006, as Montenegro's Parliament had declared the independence of the Republic 
of Montenegro, it had also prescribed that all laws enacted by the former State Union of Serbia and 
Montenegro would continue to be applied in Mo ntenegro.  Thus, Montenegro was undertaking to 
implement former State Union laws in the areas of  TBT and intellectual prope rty, and was developing 
the institutional capacity to deal with these matters .  She acknowledged that additional efforts would 
be needed to establish a system of technical regula tions and standards meeting the requirements of the 
TBT and SPS Agreements.  In other areas, Monteneg ro stood ready to make amendments and other 
changes as deficiencies in Montenegro's laws and re gulations were being identified by Members.   
6. She noted that much work had already been accomplished on the legislative front.  As per 
October 2005, virtually all necessary legislation ha d been passed to bring Montenegro into full 
compliance with the TRIPS Agreement.  A new Customs Law had been applied since 2003, and 
Montenegro had enacted a new Customs Tariff La w and a new Foreign Trade Law.  A Foreign 
Investment Law and a Free Zones Law had been intr oduced to stimulate the economy.  Most of the 
economy had been privatized, and her Government was in the process of privatizing the remaining 
large State-owned enterprises.   
7. Members of the WTO welcomed the applica tion from Montenegro to join the WTO and 
looked forward to a rapid accession on appropriate  terms and conditions.  Members appreciated 
Montenegro's willingness to comply with WTO rules and principles, noting that further work would 
be required to improve the legal framework and to strengthen Montenegro's institutions to implement 
and enforce WTO rules.  Some Members also pointed  out that Montenegro would need to eliminate 
some WTO-inconsistent measures.   
8. The Working Party reviewed the economic policie s and foreign trade regime of Montenegro 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by 
members of the Working Party on the various aspects  of Montenegro's foreign trade regime and on 
the terms and conditions of Montenegro's ac cession to the WTO are summarized below in 
paragraphs [9 to ...].   
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 
9. The representative of Montenegro said that the Central Bank of Montenegro had been 
established as an independent institution with ex clusive responsibility to carry out Montenegro's 
monetary policy.  Pursuant to the new Constitutio n of Montenegro, the Central Bank was responsible 
for ensuring financial stability and supervising the banking sector.  The role of the Central Bank in  WT/ACC/SPEC/CGR/4/Rev.2 
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 this regard was nevertheless lim ited as Montenegro had adopted th e Euro as its currency from the 
time the Euro had come into circulation on 1 Janua ry 2002.  Inflation in Montenegro was therefore 
primarily the result of imported inflation and supply-side shocks.   
10. According to the Law on the Central Bank of Montenegro, the Central Bank was also 
entrusted with the task of maintaining banking stabili ty as well as an efficient payments system in the 
Republic.  The banking sector had been reformed th rough restructuring and privatization, and the 
arrival of foreign-owned banks.  The Central Bank had adopted an extensive regulatory framework to 
govern the operations of commercial banks in Mont enegro, including some 35 by-laws addressing the 
supervision of banks and an additional seven by-l aws governing financial and banking operations.  
The payments system, originally centralized w ithin the Central Bank of Montenegro, had been 
operated through the commercial ba nks since 5 January 2004.   
11. Concerning the fiscal policy, the representative of Montenegro said that Montenegro had 
undertaken comprehensive fiscal reforms since 2001 in consultation with the World Bank and the 
International Monetary Fund.  Seve ral laws had been adopted to establish a more transparent system 
of taxation and expenditures and to enhance re venue collection, notably a new Law on Budget 
(RM OG Nos. 40/01 and 44/01) establishing the Treasury of the Republic of Montenegro, the Law on Public Procurement (RM OG No. 40/01), the Law on Tax Administration (RM OG No. 65/01), the 
Law on Local Self-Government Financing (RM OG Nos. 42/03 and 44/03), and the Law on Supreme 
Financial Institution for Auditing (RM OG No. 28 /04).  The Supreme Financial Institution for 
Auditing verified the collection and use of public  revenue, as well as the management of State 
property.  A medium-term framework for budget expe nditures had been introduced in the Budget Law 
for 2003 to improve the management of public e xpenditure, and the concept of programme budgeting 
was being developed.  Other measures included th e introduction of fiscal cash registers and tax 
identification numbers.  The population had subm itted tax declarations for the first time in 
January 2003.   
12. At present, taxes were levied on the basis of the Law on Corporate Profit Tax 
(RM OG Nos. 65/01, 12/02, 80/04 and 40/08) as am ended in December 2004; the Law on Personal 
Income Tax (RM OG Nos. 65/01, 12/02, 37/04, 29/05, 78/06 and 04/07) and the Law on Amendments to the Law on Personal Income Tax (RM OG Nos. 37/04, 29/05, 78/06 and 04/07); the Law on Value Added Tax (RM OG Nos. 65/01, 38/02, 72/02, 21/03, 76/05, 04/06, and 16/07); the Law on Excise 
Tax (RM OG Nos. 65/01,12/02 and 79/05); the Law on Administrative Fees (RM OG Nos. 55/03, 
46/04, 81/05, 02/06 and 22/08); the Law on Sales Tax for Used Motor Vehicles, Vessels and Aircrafts 
(RM OG No. 55/03); and the Law on Real Estate Tax (RM OG Nos. 65/01 and 69/03).  The corporate WT/ACC/SPEC/CGR/4/Rev.2 
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 profit tax was levied at a flat rate of 9 per cent.  The variable rate of the pe rsonal income tax had been 
replaced by a flat rate under the 2006 amendm ents of the Law on Personal Income Tax 
(RM OG No. 78/06).  The personal income tax would amount to 15 per cent in 2007 and 2008, 
12 per cent in 2009 and 9 per cent as of 2010.  A sal es tax had been replaced by value added tax in 
April 2003.  Excise taxes were currently applied to alcoholic beverages, tobacco and petroleum 
products.  The real estate tax, levied on the mark et value of properties, was collected by the 
municipalities.  Article 6 of the Law on Local Se lf-Government Financing authorized municipalities 
to levy a surtax on personal income, the real estate tax, a tax on the consumption of alcoholic and non-
alcoholic beverages, a tax on vacant construction land , and a tax on company names.  Taxes collected 
by the municipalities had accounted for approximate ly 5.4 per cent of total Government revenue 
in 2004.   
13. In response to specific questions, the representativ e of Montenegro added that although duties 
and taxes collected at the border had represented more  than 50 per cent of total Government revenue 
in 2004, these revenues were largely due to the appli cation of internal taxes (VAT and excise duties).  
Customs duties and charges had accounted for less  than 10 per cent of total Government revenue 
in 2004.  She confirmed that Montenegro's municipa lities were not authorized to levy taxes or duties 
on imports.   
- Foreign Exchange and Payments  
14. The representative of Montenegro said that the Euro was the monetary unit, legal tender and 
reserve currency of Montenegro pursuant to the Law of the Central Bank of Montenegro.  The Law on 
the Central Bank (RM OG Nos. 53/00, 47/01and 04/05), the Law on Banks (OG MNE No. 17/08), the Foreign Investment Law (RM OG Nos. 52/00 a nd 36/07), and the Law on Current and Capital 
Transactions (RM OG No. 45/05) enabled payments to be effected freely without restriction.  Her 
Government did not impose any requirements or cont rols on the acquisition or disposition of foreign 
exchange by private individuals or firms, did not provide foreign exchange for any designated 
purpose, nor did it apply any limitations or restri ctions on foreign accounts of businesses or private 
citizens.  Montenegro did not maintain any foreign exchange restrictions not explicitly approved by 
the IMF.  She added that the new Law on Current and Capital Transactions, which had entered into 
force in 2005, did not authorize any restrictions w ith respect to foreign exchange and payments for 
residents and non-residents alike.  The new Law also  covered foreign direct investment, trading in 
securities, foreign borrowing and le nding, and deposits in foreign ba nks prohibited any discriminatory 
State-ordered restrictions on the free movement of capital.    WT/ACC/SPEC/CGR/4/Rev.2 
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 15. Asked to describe the circumstances under wh ich foreign accounts could be frozen and the 
right to appeal such decisions, she said that foreign or domestic accounts generally could be frozen 
only by court order, normally in the context of an ongoing dispute or in the execution of a judgement.  
In addition, Montenegro's tax authorities could freeze accounts if necessary to ensure payment of 
uncollected taxes, and an investigating magist rate could freeze an account in connection with a 
criminal investigation.  Such actions were subject to administrative appeal and to judicial review.   
16. Concerning Montenegro's relations with the IMF,  the representative of Montenegro recalled 
that the Socialist Federal Republic  of Yugoslavia (SFRY) had par ticipated in the Bretton Woods 
Conference (in 1944) and had been one of th e founders of the IMF and the World Bank.  
Between 1980 and 1991, the SFRY had been approved  for seven stand-by arrangements to the value 
of SDR 3.5 billion, of which SDR 2.7 billion had been used.  On 20 December 2000, the 
IMF Committee of Executive Directors had decided that the Federal Republic of Yugoslavia (FRY) 
met all requirements for becoming a member of the institution, with retroactive effect from 
14 December 1992, when the Board of Executive Di rectors of the IMF had concluded that the SFRY 
had ceased to exist.  The FRY's share of the asset s and liabilities of the former SFRY had been set at 
38.06 per cent.  In 2005, the IMF had granted Serbia and Montenegro a credit of US$200 million and 
this Agreement had enabled a write-off of th e remaining debt to the Paris Club totalling 
US$700 million.  After the proclamation of Montenegro 's independence, the ratio of all non-allocated 
rights and obligations had been set at 94.12 per cen t for Serbia and 5.88 per cent for Montenegro in 
accordance with the Agreement on Regulating Membersh ips in International Financial Organizations 
and Division of Rights and Obligations of the Two Republics signed between Montenegro and Serbia on 10 July 2006. 
17. Stressing that an efficient and transparent m onetary and foreign exchange system could 
facilitate trade and contribute to economic develo pment, a Member referred to ongoing discussions 
between the Government of Montenegro and the International Monetary Fund regarding certain 
aspects of the financial and foreign exchange system, and urged Montenegro to be ready to come into 
compliance with WTO rules, including Article XV of the GATT and Article XI of the GATS, and to 
factor this into the discussions with the IMF.   
18. In reply, the representative of Montenegro sai d that Montenegro was negotiating its status 
with the IMF, and WTO requirements were not cen tral in these talks as Montenegro was using the 
Euro as its sole currency.  She reiterated that the Law on Current and Capital Transactions did not 
authorize any restrictions with respect to foreign exchange and payments.  She subsequently informed 
the Working Party that Montenegro had become a member of the IMF on 18 January 2007. WT/ACC/SPEC/CGR/4/Rev.2 
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 - Investment Regime 
19. The representative of Montenegro said that th e Economic Reform Agenda, a comprehensive 
four-year plan for the period 2003-2007, aimed at fostering a positive business climate in Montenegro 
based on transparent, non-discriminatory and non-di scretionary regulations, effective protection of 
investors' rights, and rapid and fair settlement of disputes.  The Agenda sought to develop an 
environment conducive to domestic and foreign investment by upgrading the physical infrastructure 
in Montenegro as well as in the context of ove rall legal and institutional reforms.  Among the 
objectives were to achieve a trade regime in confor mity with WTO rules, a modern commercial legal 
regime, the protection of propert y rights, streamlined administrative procedures, financial sector 
reform, and a stable macroeconomic environment.  Her Government was particularly mindful of the 
positive effect of investment in creating empl oyment.  In 2004, the Montenegrin Investments 
Promotion Agency (MIPA) has been established by  Government Decision.  The purpose of the 
Agency was to promote investment projects, deve lop Montenegro's investment promotion strategy, 
coordinate all activities to attract foreign investme nt, and develop partnershi ps between the public and 
private sector.  The Agency could provide informat ion to potential investors, but had no means to 
provide subsidies or other types of incentives.   
20. Foreign investment was regulated pursuant to th e Foreign Investment Law of the Republic of 
Montenegro (RM OG Nos. 52/00 and 36/07).  Foreign investors were (i) legal entities with their head 
office outside of Montenegro, (ii) foreign natura l persons, or Montenegrin citizens having taken up 
residence abroad for more than one year, (iii) an enterprise established in Montenegro by a foreign 
person, or (iv) a domestic enterprise with more th an 25 per cent foreign ownership.  Montenegro's 
investment legislation generally placed foreigners on equal footing with domestic investors and did 
not stipulate reciprocity requirements, except for the purchase of real estate pursuant to the Law on Basic Property Relations (FRY OG No. 29/96).  Th e Foreign Investment Law did not stipulate 
restrictions on foreign capital except for productio n or trade in arms and ammunition, which was 
subject to approval by the Ministry of Defence and could only be effected in a joint venture with a 
local partner, and joint ventures in national parks or  in "border districts", where the share of foreign 
ownership in the joint venture could not exceed 49 pe r cent.  Border districts were not determined 
precisely in the Law, but understood to be identical to the "frontier strip" defined in the Law on Crossing of the State Border and Movement in the Frontier Strip (RM OG No. 68/02) as territory 
within 100 metres of the State border of Montenegro on land, and within two miles of the boundary 
line at sea.  The Ministry of Defence was required to  respond to a request to establish or invest in an 
enterprise producing or trading in arms and ammu nition within 30 days of receipt, otherwise the 
application would be considered approved.  She confirmed that Montenegro had no minimum capital  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 7 
 
 
 requirements for foreign investors, and did not apply any differential pricing for utilities or 
transportation.   
21. All foreign investment in Montenegro should be  insured and registered with the Agency for 
Foreign Investments and Reconstruction of Econ omy (for statistical purposes).  Changes in the 
investment should also be notified to the Agency.  Foreign-owned enterprises registered with the 
Commercial Court in the same manner as domestic en terprises.  The Court in formed the Agency for 
Foreign Investments about the registration of foreig n investment.  Registration with the Agency was 
automatic and free of charge.   
22. Asked to describe the requirements for registering a daughter company of a foreign 
enterprise, the representative of Montenegro said that a foreign enterprise establishing a foreign 
company branch in Montenegro should submit documentation to the Central Registry of the 
Commercial Court within 30 days of the establishm ent, including the name and legal form of the 
parent company and the branch; the activities and addr ess of the branch; an auth enticated copy of the 
charter of the foreign enterprise and a certified transl ation of this document; a copy of the registration 
certificate of the foreign enterprise and an authenti cated document confirming the legal registration of 
the enterprise in its home State; identification of  the person(s) authorized to represent the company 
vis-à-vis  third parties and in legal proceedings as a company Body or permanent representative; 
identification of a resident/residents authorized to  accept the service of legal proceedings on behalf of 
the company or any notice required to be served on the company; and the most recent balance sheet, 
profit and loss statement, or similar financial doc uments required by law in the home country.   
23. Concerning the expropriation of property, she noted that Article 45 of the Constitution of 
Montenegro (RM OG No. 48/92) provided that proper ty rights could only be revoked in the public 
interest as prescribed by law, and against justif iable compensation.  According to the Law on 
Expropriation (RM OG Nos. 55/00, 28/06, and 21/08), the State authority in charge of property affairs 
effected the expropriation of real estate in the public interest, as defined by law, or determined by the 
Government.  The Government was obliged to decide  upon proposals to expropriate real estate by the 
State, a municipality, a State fund or a public company within 60 days of receipt.  The decision could be appealed to the Supreme Court of Montenegro.  Expropriation decisions of the State authority in 
charge of property affairs could be appealed to  the second instance administrative authority, or 
referred to the competent court under the administ rative disputes procedure.  Article 17 of the 
Constitution provided a general right of appeal of all decisions affecting the rights or legal interests of 
any person.  An interested party could also request  the court to consider compensation pursuant to the 
Law on Contracts and Torts (RM OG No. 44/99).  The Law on Foreign Investment stipulated WT/ACC/SPEC/CGR/4/Rev.2 
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 specifically (Article 29) that compensation should be no less than the market value plus interest 
calculated from the date of expropriation, and co mpensation for damages due to war or state of 
emergency should be no less than that granted to dom estic investors (Article 30).  Foreign investors 
also had the right to be compensated for dama ges caused by illegal or irregular conduct of 
Government officials or agencies.   
24. Some Members noted that Montenegro was considering amending the Law on Foreign 
Investment inter alia  to strengthen the legal protection of investments and inquired about the 
anticipated timeframe for the completion of this wo rk.  The representative of Montenegro replied that 
Montenegro's Parliament had passed the Law on Amendments and Modifications of the Law on Foreign Investment on 29 May 2007 (RM OG No. 36/07).  The amendments had removed the 
restriction on foreign investment in restricted ar eas (national parks and "border districts").  The only 
restriction still in place concerned foreign investment  in production or trade in arms and ammunition 
(Article 7 of the Law). 
- State Ownership and Privatization, State-Trading Entities  
25. The representative of Montenegro said that a pproximately 380 State-owned or "socially 
owned" companies had been subject to transforma tion and incorporation in the early 1990s pursuant 
to the Law on Ownership and Management Transformation (RM OG Nos. 2/92, 17/92, 59/92, 4/93, 27/94, 30/94, and 23/96).  Employees in these enterprises had been granted 10 per cent of the shares 
free of charge, and been allowed to purchase addi tional shares (up to 30 per cent of the shares 
outstanding), offered at a discount and to be paid  in instalments.  The remaining stakes had been 
transferred to three State-owned funds - the Development Fund, the Pension Fund, and the 
Employment Fund.  Some 117 of these enterprises had subsequently been sold through various 
methods, including direct sale or auctions.  In ei ght sectors - mobile telecommunications, insurance, 
tourism, pharmaceuticals, food production, footwear and garments, regional wa ter supply, and metals 
- privatization had been envisaged to be effected  through the establishment of joint ventures.  She 
noted that in accordance with the Law on Ownership  and Management Transformation, all "socially 
owned" companies had been transformed into joint- stock or limited liability companies (with private, 
mixed, State or cooperative ownership). 
26. More than 200 enterprises had been privatized  through Mass Voucher Privatization (MVP).  
Montenegro's adult population had received voucher points and given the choice to invest their points 
in individual enterprises or in six privatizati on funds (HLT Fund, Eurofond, Trend, Atlas Mont, 
Moneta and MIG).    WT/ACC/SPEC/CGR/4/Rev.2 
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 27. At present, privatization was governed by  the Law on Ownership and Management 
Transformation (RM OG Nos. 2/92, 17/92, 59/92, 4/93, 27/94, 30/94 and 23/96); the Law on 
Privatization of the Economy (RM OG Nos. 23/96, 6/99, 59/00 and 42/04); the Decision on 
Establishment and Structure of the Privatizati on Council (RM OG No. 23/07); the Decree on Sale of 
Shares and Company Assets by Public Auction (R M OG No. 20/04); the Decree on Sale of Shares 
and Company Assets by Public Tender (RM OG Nos.  08/99, 31/00, 14/03, 59/03 and 65/03); the 
Decree on Publishing, Acquiring and Use of Priva tization Vouchers (RM OG Nos. 17/01, 37/01, 
and 11/02); the Decree on Dematerialization of  Securities and Privatization Vouchers 
(RM OG Nos. 8/99 and 26/00); the Decree on the Mode of Implementing Employees' Rights to Free Shares (RM OG No. 24/99); the Law on Settling Obliga tions and Claims Related to Foreign Debt and 
Foreign Currency Saving Deposits of the Citizens (RM OG Nos. 55/03 and 11/04); the Law on 
Restitution of Property Rights and Compensation (RM OG No. 21/04); and the Law on Investment 
Funds (RM OG No. 49/04).  Privatization was carried out according to Privatization Annual Plans adopted by her Government, on proposal of the Pr ivatization Council.  The Privatization Council had 
been established in 1999 pursuant to the Law on Am endments of the Law on Privatization of the 
Economy (RM OG Nos. 23/96, 6/99, 59/00 and 42/04) and was responsible for managing and 
controlling the privatization process.  It has execu tive competencies and was responsible before the 
Government.  The privatization plans identified th e enterprises to be privatized, the methods of 
privatization, the number of shares to be sold, etc.   
28. The representative of Montenegro provided a Priv atization Report in May 2006, circulated in 
document WT/ACC/CGR/13.  The report described th e privatization activities undertaken in 2005 and 
outlined the plan for 2006.  According to the repor t, among the 386 enterprises having had an element 
of State ownership in the past, 272 had been fully privatized as per December 2005.  Responding to requests for updates on progress in privatization in  Montenegro, she provided information on 
enterprises to be privatized in 2008 pursuant to the Decision on the Privatization Plan for 2008 
(document WT/ACC/CGR/28/Add.1).  Asked to provid e a status report of the privatization process 
per sector, she noted that data per sector was not available, but based on the estimated value of the enterprise capital, the percentage of enterprise capital remaining under State control was less than 
15 per cent.  She provided a list of the largest comp anies with majority State ownership (more than 
50 per cent of the shares) that remained to be pr ivatized in Table 1.  She confirmed that her 
Government did not retain control over the ma nagement in enterprises where it held a minority 
interest.   WT/ACC/SPEC/CGR/4/Rev.2 
Page 10  
 
 Table 1:  Largest Companies with the Majority  of State-Owned Capital Still to be Privatized
 
Company Sector Nominal 
Value of the 
Company 
(in million €) State's Share 
in % Value of the 
State Share 
(in €) 
"Elektroprivreda CG" AD 
Niksic Energy 907.04 67.00 607.71 
Zeljeznice Crne Gore Railway 319.53 65.00 207.70 
"Jadransko brodogradiliste" AD 
Bijela Shipyard 31.61 62.00 19.60 
AD "Plantaze" Podgorica Wine production 68.7 0 54.00 37.10 
AD Luka Bar Bar Adriatic Port 133.96 54.00 72.34 
Duvanski kombinat AD 
Podgorica Tabaco production 19.78 51.10 10.09 
Institut Dr Simo Miloševi ć Health tourism 59.24 56.00 33.17 
HTP Budvanska rivijera Tourism 69.62 58.73 40.89 
HTP Ulcinjska rivijera Tourism 81.53 60.73 49.51 
Total capital  1,691.01 - 1,078.11 
 
29. In response to specific questions, she said that no  restrictions were placed on the participation 
of foreign investors in the privatization process, other than those prescribed by the Law on Foreign 
Investment.  The Decree on Sale of Shares and Co mpany Assets by Public Auction and the Decree on 
Sale of Shares and Company Assets by Public Te nder both stipulated that any natural and legal 
person, whether domestic or foreign, had the right to participate in privatizati on tenders and auctions.   
30. She noted that no companies would be reserved for continued State ownership.  Only natural 
resources and public goods such as roads, parks and town squares were not to be privatized.  Her 
Government was determined to complete the pr ivatization process as soon as possible.  A specific 
estimate of how long this would take  was, however, difficult to provide. 
31. The representative of Montenegro confirmed that  to ensure full transparency and to keep 
WTO Members informed of its progress in the ongoing reform of its econom ic and trade regime, 
Montenegro would provide annual reports to WTO Members on developments in its programme of 
privatization, including identification of recently pr ivatized enterprises and enterprises expected to be 
privatized, as well as relevant legal measures relatin g to Montenegro's privatization programme.  The 
Working Party took note of this commitment. 
32. The representative of Montenegro responded to requests for information on State trading in 
document WT/ACC/CGR/3/Add.1 (Annex 6), stating th at Montenegro had no enterprise covered by 
the provisions of Article XVII of the GATT 1994.  S ubsequently asked to list and provide information 
on any enterprise with exclusive or special rights or privileges and any State-owned or 
State-controlled enterprise regardless of whet her these enterprises had special privileges or  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 11 
 
 
 monopolistic status, including information on the sec tors in which these enterprises operated and the 
extent of the State's involvement in the commercial decisions of these enterprise s, she reiterated that 
Montenegro had no enterprises - private or State-owne d - with exclusive or special rights or privileges 
as referred to in Article XVII of the GATT 1994 and the Understanding on that Article.  Montenegro 
had no State-trading enterprises in any sector.  Am ongst the former State-owned enterprises with a 
continued element of State ownership, none had "exc lusive or special rights or privileges, including 
statutory or constitutional powers, in the exercise of which they influence through their purchases or 
sales the level or direction of imports or exports",  and no privately-owned enterprises had such special 
rights or privileges.  Montenegro's State-owne d enterprises acted in accordance with commercial 
considerations and in a manner c onsistent with the non-discrimination principle, as provided for in 
Article XVII of the GATT 1994.  Commercial deci sions of these enterprises were taken through 
participation of the State in the management board of the enterprises.  She noted that there were no 
specific laws or regulations governing the sal es/purchases of these enterprises.  State-owned 
enterprises operated under the same rules as privatel y-owned enterprises.  As of mid-2008, more than 
85 per cent of the capital owned by the State had been privatized (see paragraph [28]).  
33. The representative of the Montenegro confirme d that, from the date of accession, enterprises 
that were State-owned or controlled, and enterprises  with special or exclusive privileges, would make 
purchases of goods and services, which were not intended for governmental use, and sales in international trade in accordan ce with commercial considerations, including price, quality, 
availability, marketability, and transportation, and would afford enterprises of other WTO Members 
adequate opportunity in conformity with customar y practice, to compete for such purchases or sales.  
She further confirmed that enterprises that were State-owned or -controlled, and enterprises with 
special or exclusive privileges  would also act in conformity with other WTO provisions.  She also 
confirmed that Montenegro would notify any enterp rises falling within the scope of the Understanding 
on Article XVII of the GATT 1994 upon accession.  The Working Party took note of these 
commitments. 
- Pricing Policies  
34. The representative of Montenegro said that the Law on Social Price Control 
(RM OG No. 45/90) had provided the authority for her Government to regulate prices in broad areas 
of the economy, including in the construction industry,  road transport, insurance, higher education and 
research, publishing (except local newspapers), broa dcasting, health care and social services, and 
banking.  The Law had also provi ded for Government regulation of  prices in order to stimulate 
agricultural production.  In addition, the Law had authorized intervention in response to significant WT/ACC/SPEC/CGR/4/Rev.2 
Page 12  
 
 price disturbance, or in case it was apparent that  economic policy objectives could not be met by any 
other means but price control.  However, despite the broad authority provided in the Law on Social 
Price Control, price controls had been applied fo r a limited number of goods and services such as 
medicines for human consumption, oil and oil deri vatives, postal services, and certain utility services 
(heating, water supply, garbage collection, public tr ansportation, etc.) subject to control by the local 
authorities.  The Law had been abolished in Febr uary 2006 pursuant to the Law on Abolishment of 
the Law on Social Price Control (RM OG No. 27/06).   
35. At present, prices were determined freely by the market in Monteneg ro except for certain 
medicines, oil and oil derivatives, and coal.  Ar ticle 6 of the Law on Medicines (RM OG Nos. 80/04 
and 18/08) authorized her Government to set maxi mum prices for medicines.  She added that only 
medications reimbursable under the national health scheme - whether imported or domestic - were 
subject to price control.  She noted that unde r the national health plan, imported and domestic 
medicines were subject to the same conditions of reimbursement.  Pursuant to the Decree on Method 
of Establishment of Maximum Retail Prices of Oil Derivatives (RM OG Nos. 52/02, 55/02, 23/03, 
32/02 and 35/05), oil companies were obliged to observe maximum retail prices for oil derivatives.  
All such products were imported.  The maximum pr ices were cost-based and adjusted to account for 
movements in world market prices; exchange rates; import duties, fees and taxes; distribution, handling and storage costs; operating margins; etc.   For coal, the price controls applied only to 
domestically-produced coal delivered to the electric  power plant Pljevlja.  The measure was applied 
on the basis of the Law on Energy (RM OG No. 39/03), which envisaged complete deregulation of 
coal prices after a period of maximum five years fo llowing the passage of the La w.  Coal destined for 
other users or purposes was not subject to price regul ation.  The power plant Pljevlja was authorized 
to purchase imported coal at market prices, but in pr actice the plant based its needs on local coal.  The 
Law on Telecommunications (RM OG No. 59/00) ha d established a regulatory Agency for 
Telecommunications which was responsible for price controls, if any, on telecommunication services.  
The abolition of the Law on Social Price Control ha d eliminated the authority to establish prices for 
agricultural products.   
36. The representative of Montenegro said that importers and wholesalers of cigarettes and other 
tobacco products determined the retail price and notified the administrative authority.   
37. Noting that the Law on Social Price Control had been abolished but that the Government of 
Montenegro had retained the authority to regulat e the prices for some items, some Members asked 
how Montenegro would ensure that its price contro ls would not be applied in a prejudicial manner, 
consistent with Article III:9 of the GATT 1994.    WT/ACC/SPEC/CGR/4/Rev.2 
 Page 13 
 
 
 38. The representative of Montenegro replied th at the price regulations applied by her 
Government did not discriminate between imported and domestically-produced goods.  Both the coal 
mine and the power plant at Pljevlja were undergoing  privatization and might possibly be sold to the 
same owner.  No further price controls would be  maintained on coal once the privatization process 
had been completed for the two enterprises.   
39. Concerning medicines, she noted that a Decree on the Criteria for Establishing Maximum 
Prices of Medicines (RM OG No. 50/07), which detailed the price regulations on medicines and 
included a list of price-controlled medications, had b een adopted in July 2007.  Pursuant to this 
Decree, maximum prices of medicines were determ ined by the Agency fo r Medicines and Medical 
Devices on the basis of the price proposed by th e producer, or its agent or representative in 
Montenegro in his/her application for a licence to place the medicine on the market, and a set of 
criteria including the average wholesale price of me dicines in reference countries (Slovenia, Croatia, 
and Serbia) and its ratio to the wholesale price of medicines in Montenegro, economic indicators, and 
wholesale costs.  Maximum prices were published in the Official Gazette of Montenegro (OG MNE).  
A market inspectorate controlled the proper implementa tion of price control measures.  She added that 
prices controls of medicines were enforced at th e wholesale and retail levels and that imported and 
domestic medicines were subject to the same c onditions.  Over-the-counter medicines were not 
subject to price controls.  She noted that the list of price-controlled medicines was under development.  
Once finalized, the list would be published in the Offi cial Gazette.  She confirmed that all subsequent 
changes would be published.   
40. The representative of Montenegro confirmed th at from the date of accession, Montenegro 
would apply price control measures in a WTO-consis tent fashion, including by taking account of the 
interests of exporting WTO Members as provided fo r in Article III:9 of the GATT 1994, and with 
respect to Articles V and VIII of the GATT 1994 and Article VIII of the General Agreement on Trade 
in Services (GATS).  She also confirmed that following accession, Montenegro would regularly 
publish notices of the goods and services subject to Stat e price controls.  The Working Party took note 
of these commitments.   
- Competition Policy 
41. The representative of Montenegro said that the FRY Antimonopoly Law (FRY OG 
No. 29/96) - technically in force in Montenegro, but  never applied in practice - had been superseded 
by the Competition Law (RM OG Nos. 69/05 and 37 /07) enacted in November 2005.  The new Law 
had been modelled on Articles 81, 82 and 86 of th e Treaty on European Union; EC Regulations WT/ACC/SPEC/CGR/4/Rev.2 
Page 14  
 
 Nos. 2790/1999, 139/2004 and 17/62; and European Commission Decrees (OJ C 372/1997 and 
OJ C 368/2001).   
42. The Competition Law foresaw the establishment of an independent agency, the Directorate 
for the Protection of Competition, responsible for the development of regulations furthering 
competition as well as the enforcement of Montenegro's competition legislation.  She estimated the annual budgetary expense for the enforcement of th e Law to be approximately €100,000.  The Agency 
would be entrusted with merger control and inves tigations of acts infringing on competition, defined 
in the Law as abuse of dominant position and agre ements preventing, restricting or impairing 
competition in circumstances other than those accep ted under the Law (e.g. agreements contributing 
to the improvement of production or distribution, or to the stimulation of technical or economic 
development).  The Law stipulated strict penalties fo r violations against the rules on competition.  The 
decisions of the Agency could be challenged in  the Administrative Court of the Republic of 
Montenegro.   
43. Asked to provide an updated list of compan ies having production, trade or internal 
distribution monopolies in Montenegro, she said that Montenegro had no such enterprises.  She added 
that the Directorate for the Protection of Compe tition was responsible for determining abuse of 
competition and the existence of monopolies.  Pr oceedings on abuse of competition and monopolies 
could be initiated ex officio  or upon the request of an interested party.  However, no such proceedings 
had ever been initiated.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government 
44. The representative of Montenegro said that M ontenegro's parliamentary democracy was based 
on the principle of separation of powers between th e legislative, executive and judicial branches of 
Government.  The President of the Republic, represen ting the State, was elected directly for a five-
year term.  The President nominated the Prime Minister, proposed the president and judges of the 
Constitutional Court, and signed promul gations declaring laws.  The role of the Prime Minister was to 
constitute the Government.   
45. Parliament was the supreme legislative Body, composed of 81 members chosen by direct 
ballot every four years.  Parliament enacted th e Constitution, the laws and legal acts; provided 
authentic interpretation of the laws; adopted the budget and annual balance shee t; ratified international 
agreements; elected and dismissed the President and Vice President of the Parliament from within its  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 15 
 
 
 own members; and confirmed the Prime Minister, ministers, justices and presidents of the 
Constitutional Court and the Supreme Court, and the St ate Prosecutor.  Montenegro's Parliament also 
decided on membership in international organizati ons based on proposals of the President.  Laws 
passed by Parliament were declared by promulgation signed by the President.  Should the President refuse to sign a promulgation declaring a law, then Parliament would be obliged to re-examine the 
law.   
46. The Rules of Procedure of the Parliame nt (Articles 157 to 159) implemented the 
constitutional provision establishing that Parliament could provide authentic interpretation of the 
laws.  A request for an authentic interpretation of a law was submitted to the President of the 
Parliament, who conveyed it to the members of Pa rliament and the Constitutional and Legislative 
Committee.  The Constitutional and Legislative Co mmittee drafted an authentic interpretation and 
presented it to Parliament.  If the Constitutional a nd Legislative Committee did not find the request 
for an authentic interpretation justified, a report would be submitted to Par liament, which decided on 
the matter.  An authentic interpretation of a law was binding.  WTO-related legislation enacted by 
Parliament was, in principle, open to authentic in terpretation.  However, international agreements 
ratified by Montenegro became part of the internal  legal system and could not be changed by law.  
Thus, any authentic interpretation of WTO-related laws enacted by Parliament would have to take 
note of the respective WTO Agreements, and obser ve the requirements of such Agreements.   
47. Concerning the procedure for ratification of Montenegro's Protocol of Accession, the 
representative of Montenegro said that the Ministry of Economic Development would prepare a draft 
Law on Ratification of the Marrakesh Agreemen t Establishing the World Trade Organization 
(including Annexes 1, 2 and 3) in cooperation with the Ministry of Foreign Affairs.  The draft law 
would be submitted to her Governme nt for approval, and then forwarded to Parliament for passage.  
Upon adoption of the Law on Ratification, the Presi dent of Montenegro would sign a Proclamation 
for the law, which would be published in the Offici al Gazette.  Following publication, the Ministry of 
Foreign Affairs would prepare and submit an instrument on accession in compliance with Article XII:1 of the Agreement Establishing the World Trade Organization.  The procedure for 
ratification of international agreemen ts normally took about two months.   
48. Parliament confirmed the Government by majority  vote at the proposal of the Prime Minister 
and based on the programme of the prospective Go vernment.  The Government was accountable to 
Parliament in implementing laws and other regulations passed by Parliament.  The Government proposed laws, the State budget and other regulations for adoption by Parliament, and adopted decrees 
and other regulations necessary for execution of the laws.  Ministries worked independently in their WT/ACC/SPEC/CGR/4/Rev.2 
Page 16  
 
 areas of jurisdiction within the framework provi ded by the Constitution and the laws, and were 
accountable to the Government.  The present Gove rnment consisted of a Prime Minister, two 
Vice-Prime Ministers, and 13 Ministers (Maritime Affairs, Transportation and Telecommunication; 
Tourism and Environmental Protection; Finance; Foreign Affairs; Culture, Sports and Media; 
Defence; Agriculture, Forestry and Water Manageme nt; Justice; Education and Science; Interior 
Affairs and Public Administration; Economic Development; Protection of Human and Minority 
Rights; and Health, Labour and Social Welfare).   
49. The Ministry of Economic Development was the principal Government entity responsible for 
formulating and implementing policies relating to fo reign trade.  The Ministry was responsible for 
negotiating and coordinating the implementation of international treaties and the coordination of 
relations with international economic  institutions.  In carrying out its tasks, the Ministry of Economic 
Development cooperated with the Ministries of  Finance; Agriculture, Forestry and Water 
Management; and other ministries.  Foreign trade pol icy was formulated in close cooperation with the 
Ministry of Finance, which was also responsible  for cooperation with the international financial 
institutions.  The Ministry of Finance proposed the Law on Customs Tariff.  The Ministry of 
Agriculture, Forestry and Water Management was in charge of enacting SPS measures related to 
exportation and importation of agricultural goods.  The Ministry of Economic Development was 
responsible for enacting substantive laws with respect to standards and technical regulations, 
measures and precious metals, and intellectual propert y.  The Secretary for European Integration was  
responsible for coordinating activities rela ted to Montenegro's EU integration. 
50. Judicial authority was vested in the courts .  The Constitutional Court assessed the compliance 
of legal acts with the Constitution.  If the Constituti onal Court determined a law or other legal act to 
be inconsistent with the Constitution, then the act (or some of its provisions) would cease to be 
effective on the day the Constitutional Court passed the decision.  The Law on Courts 
(RM OG Nos. 5/02 and 49/04) elaborated in detail the proceeding before the Constitutional Court.  
The Supreme Court was the highest court in Montenegro, providing uniformity in the implementation of laws by all courts.  The present judicial system recognized specialized courts such as administrative and commercial courts.  The appellate  courts decided on appeals against decisions of the lower courts, 
delineated the competencies of the lower courts , and other matters determined by the law. 
51. The Constitution guaranteed a general right of a ppeal against individual legal action brought 
in a court or an administrative procedure.  This constitutional principle had been implemented in the 
Law on Criminal Procedure (RM OG Nos. 71/03, 7/04 and 47/06), the Law on Civil Procedure (RM OG Nos. 22/04, 28/05 and 76/06) and the Law on General Administrative Procedure  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 17 
 
 
 (RM OG No. 60/03).  Administrative appeals of cust oms and other Government decisions on issues 
covered by WTO Agreements were conducted under the general rules for appeal provided in the Law 
on Administrative Procedure.  The Supreme Court had appellate jurisdiction only.  The Supreme 
Court decided as the third instance authority in certain cases.  Decisions of a higher court, acting as a court of first instance, could be appealed to the Supreme Court.   
52. The representative of Montenegro confirmed th at from the date of accession Montenegro's 
laws would provide for the right to appeal ad ministrative actions on matters subject to WTO 
provisions to an independent tribuna l in conformity with WTO obligati ons including Article X:3(b) of 
the GATT 1994.  The Working Party took note of this commitment. 
- Authority of Sub-Central Governments 
53. The representative of Montenegro said that sub- central entities had no competencies in areas 
related to WTO rules.  A violation of WTO rules by a local authority would be corrected by the 
responsible ministry or by her Government.  Local  Governments had no direct role in foreign trade 
operations and foreign economic re lations, nor with respect to ta xation applicable to imports, 
subsidies, or investments.   
54. Article 6 of the Law on Local Self-Govern ment Financing (RM OG Nos. 42/03, 44/03 
and 05/08) allowed municipalities to collect a surtax on the personal income tax, a tax on real estate, a consumption tax, a tax on vacant construction la nd, a tax on company name , and a local tax on the 
consumption of alcoholic and non-al coholic beverages.  The Ministry of Finance was responsible for 
the collection of all taxes through the Tax Administ ration and for the correct implementation of all tax 
laws.  The Ministry of Finance therefore had s upervisory authority over all taxes applied by the 
municipalities.   
55. The representative of Monten egro confirmed that sub-central entities had no autonomous 
authority over issues of subsidies, taxation, tr ade policy or any other measures covered by WTO 
provisions.  She confirmed that, from the date of accession, the provisions of the WTO Agreement, 
including Montenegro's Protocol of Accession, w ould be applied uniformly throughout its customs 
territory and other territories under its control, including in regions engaging in border trade or 
frontier traffic, special economic zones, and othe r areas where special regimes for tariffs, taxes and 
regulations were established.  She also confirme d that when apprized of a situation where WTO 
provisions were not being applied or were applie d in a non-uniform manner, central authorities would 
act to enforce WTO provisions without requiring aff ected parties to petition through the courts.  The 
Working Party took note of these commitments. WT/ACC/SPEC/CGR/4/Rev.2 
Page 18  
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 56. The representative of Montenegro said that regi stration was required to carry out business 
activity, including foreign trade, in Monteneg ro.  The Foreign Trade Law (RM OG No. 28/04) 
regulated import and export activities conducted by na tural and legal persons.  Registrations could be 
made for individual entrepreneurs, limited liability partnerships, and joint-stock companies.  Foreign 
companies could register a subsidiary or a bran ch as a joint-stock company, a limited liability 
company or as part of the foreign company - the Law on Companies (OG Nos. 6/02 and 17/07) provided for six forms of business association: entrep reneurs, partnerships, li mited partnerships, joint-
stock companies, limited liability companies, and part  of a foreign company.  Enterprises wishing to 
engage in foreign trade had to register at the Ce ntral Register of the Commercial Court, and obtain a 
statistical number from Montenegro's Bureau of Statistics and a customs number for the settlement of 
import duties and other customs payments.  Th e Law on Business Entities (RM OG No. 06/02) had 
simplified the company registration process significantly.  A business entity was now deemed registered unless the Central Register of the Commercial Court rejected the registration 
documentation within four days of receipt.  The pr oposed line of business should be indicated at the 
time of registration.  However, entities wishing to en gage in foreign trade would not need to specify 
the products to be imported or exported.  The regi stration at Customs was automatic against payment 
of €10, and the Customs Administration imposed no additional requirements on firms engaging in 
importation or exportation relative to firms perfor ming other commercial activities.  She confirmed 
that business entities were not required to have a physi cal presence in Montenegro in order to register 
at the Commercial Court, the Bureau of Statistics or the Customs; they could be represented by an 
attorney. 
57. Registration as a limited partnership required a st atement or contract signed by all partners 
including the name and address of the partnership and confirmation that it had been established as a 
limited liability partnership, the commencement and duration of the partnership, the full name and 
ID number of each partner, the name of each limited liability partner, the share of each partner, and a 
statement whether the share consisted of money or any other form of capital.  A joint-stock company 
should submit the contract establishing the company; its statutes; details about its Board of Directors 
(names, place and date of birth, ID numbers, citizenship, address or  place of residence, occupation, 
membership in other boards); the name and addr ess of the executive direct or, company secretary and 
auditor; the company name and headquarter a ddress; statements accepting and confirming the 
functions to which they had been appointed, si gned by all board members, the executive director,  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 19 
 
 
 company secretary and auditor, and a receipt for payment of the administrative fee.  As for 
registration as "part of a foreign firm", informati on to be submitted included: the description of the 
company's activities; the address in Montenegro; the name and form of organization of the parent 
company and the name of the part of the company, if different from that of the parent company; a certified copy of the Articles of Incorporation of the parent company and the certified translation thereof; the name(s) and address(es) of the person(s) authorized to represent the parent company in its 
dealings with third parties; and the name(s) and a ddress(es) of the person(s), residents in Montenegro, 
authorized to represent the parent company in any le gal proceedings.  This form of company aimed at 
facilitating the operation of foreign companies in Mont enegro.  Registration as "part of a foreign firm" 
was not subject to any fee or minimum capital require ment.  A foreign firm registering as "part of a 
foreign firm" did not need to invest and be establis hed in Montenegro.  Parts of foreign firms could 
act as declarants or importers of record.  Provide d all the necessary documentation was completed, the 
Central Register could only refuse the application if another entity had already registered under the 
same name or the application clearly violated an other regulation (e.g. trading in narcotics).  The 
Central Register required an annual registrati on fee of €50 for joint-stock companies; €10 for 
entrepreneurships, partnerships, lim ited liability partnerships; and €1 fo r renewal of the registration.  
The Law on Business Entities prescribed a minimum capital requirement of €25,000 for joint-stock companies, while the minimum capital needed for a limited liability company was €1.  This amount 
had to be deposited in the bank account of the company.  She noted that the Government was not 
involved in the registration of companies.  She added that no minimum capital was required for 
entrepreneurs or partnerships.   
58. Individuals could register with the Central Regi stry as entrepreneurs, which provided the right 
to import for retail purposes and engage in retail tr ade.  The signed application form should contain 
information such as the full name of the entrepre neur and of the entity (if different); his/her 
ID number and address; and a description of the activit y to be undertaken.  A foreign individual could 
also register as entrepreneur, but would need to be a resident and physically present in Montenegro in 
order to so.  Entrepreneurs had the right to import and distribute products at the wholesale level.  
Natural persons not registered as entrepreneurs c ould only import goods for their own use or for the 
use of their families.   
59. She added that importers, manufacturers, wholesalers and retailers in seeds and planting 
materials were required to be inscribed in regi sters pursuant to the Law on Seeds and the Law on 
Planting Material.   WT/ACC/SPEC/CGR/4/Rev.2 
Page 20  
 
 60. The representative of Montenegro said that Mont enegro also required a licence to engage in 
certain types of activity, notably for tobacco, me dicines and medical devices, narcotics and poisons, 
fertilizer, and pesticides, as well as in order to operate facilities, networks and equipment for the 
generation, transmission, distribution, supply and sale of energy.  The Energy Regulatory Agency 
issued licenses pursuant to the Law on Energy, ta king into account various conditions and criteria 
including the protection of public health, safet y and the environment; energy efficiency and 
conservation; the nature of source of energy; a nd the technical, economic and financial capability of 
the applicant.  Any foreign or domestic  entity could apply for a licence.   
61. The Law on Tobacco (OG MNE No. 48/08) re quired importers, exporters and entities 
engaged in transit of tobacco and tobacco products to be registered with the competent administrative 
authority (the Agency for Tobacco).  Activity licenses were needed for importation, exportation, 
manufacturing, wholesale trade, and retail trade in tobacco and tobacco products.  She noted that a 
company or entrepreneur registered as a wholesaler of tobacco or tobacco products - and having paid the wholesale licence fee - did not need to pay any import or export licence fee (Article 22, paragraph 5 of the Tobacco Law).  The Agency for Tobacco delivered the licence within 30 days of 
receipt of the application.  Enterprises or entrep reneurs could apply to the Tobacco Agency for an 
activity licence to import or export raw tobacco, pro cessed tobacco and tobacco products after having 
registered in the Central Register of the Commercia l Court to perform foreign trade activity.  Pursuant 
to Article 16 of the Tobacco Law, activity li censes were delivered provided the enterprise or 
entrepreneur fulfilled the minimum technical require ments for wholesale trade of tobacco and tobacco 
products, had not been convicted for a criminal offence of illegal trade or illegal production of 
tobacco in the three years preceding the filing of the application, had paid the prescribed fee, and - in 
the case of importation - had concluded a contract of purchase of tobacco with a foreign producer or authorized distributor.  In addition, importers of  cigarettes had to be authorized by the foreign 
producer or authorized distributor to distribute cigarettes in Montenegro's market.  The fee amounted 
to €150,000 for a five year period or €30,000 if th e enterprise imported or exported tobacco products 
only (cigarillos, shredded tobacco, pipe tobacco, chew ing tobacco or snuffle tobacco).  The fee could 
be paid in five annual instalments. 
62. Enterprises or entrepreneurs wishing to make tobacco products should demonstrate the 
capability to undertake all stages of the production process from the preparation of tobacco to the 
packaging of the final products, as well as the capaci ty to produce a full range of tobacco products - 
and a minimum of 1.5 billion cigarettes annually;  and possess suitable production premises including 
laboratories and a skilled workforce.  Tobacco manufacturers were required to provide annual 
production estimates.  She noted that the Law on Tobacco had been amended to abolish the  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 21 
 
 
 requirement that tobacco manufacturers purchase or produce minimum 40 per cent of their tobacco 
input locally.  The competent administrative author ity determined compliance with the requirements, 
and the licenses were awarded - throug h public tender - by the Minist ry of Agriculture, Forestry and 
Water Management and the Ministry of Health.  An enterprise or entrepreneur no longer satisfying 
these requirements would have his/her licence revoked.   
63. Enterprises or entrepreneurs granted licenses fo r wholesale trade in tobacco products were 
entered in the Register of Tobacco Product Wholesalers.   Applicants were required to have at their 
disposal sufficient storage capacity (for minimum 30 tons of cigarettes and other items), visibly 
marked transportation means to supply retailers, and to submit a preliminary agreement with a 
registered manufacturer or importer to supply tobacco products.  The wholesale licence fee amounted to €150,000 for a five-year period, or €30,000 for t obacco products other than cigarettes.  The fee 
could be paid in five equal annual instalments.  W holesalers were only authorized to sell to registered 
retailers.  The licence could be re voked for failure to pay the instal ment of the fee, if the licence 
holder or his/her representative engage d in illegal trade in cigarettes or other tobacco articles, or if the 
other requirements above were  no longer fulfilled.   
64. The activity licence for retail tr ade in tobacco products was valid for two years and issued 
against payment of €100 per sales outlet.  Applican ts were required to possess facilities satisfying 
sanitary, health and other conditions in accordance  with the Law on Sanitary Control; have no 
outstanding fiscal obligations; and to submit the pr eliminary Agreement with a wholesale supplier.  
Licenses could not be granted to persons convicted of illegal trade in cigarettes and other tobacco 
goods during the three-year period preceding the appli cation.  The administrative authority decided on 
the licence application within 30 days.   
65. Pursuant to the Law on Medicines (RM OG No. 80/04), a licence was required to be involved 
in the "circulation" (i.e. including importation or  exportation) of medicines.  The responsible 
administrative authority - the Ministry of Hea lth - could only issue licenses to legal persons 
established within the territory of Montenegro.  The requirement to be est ablished in Montenegro 
applied to both domestic and fo reign persons and aimed at ensu ring that commercial operators 
wishing to trade in medicines were adequately sta ffed and equipped to distribute and warehouse such 
goods.  Foreign and domestic legal pe rsons licensed for wholesale trade in medicines were subject to 
the same conditions with respect to facilities, skilled employees, and recordkeeping.  Licence 
applications were processed within  90 days and were subject to a €1,250 fee.  The licenses were valid 
for five years renewable.  Trade was limited to me dicines with a trade author ization, except when the 
regulatory agency issued approvals for shipments of  specific medicines.  She added that the Law on WT/ACC/SPEC/CGR/4/Rev.2 
Page 22  
 
 Medicines had been amended to guarantee the same treatment to domestic and foreign importers of 
medicines and separate the right to import from the right to distribute (OG MNE No. 18/08). 
66. The Law on Production and Circulation of Narc otics (FRY OG Nos. 46/96 and 37/02) 
required legal entities to be registered for the produc tion and circulation of psychotropic substances to 
engage in import and export of these items.  Le gal entities registered for wholesale production of 
medicines could import and export medicines cont aining psychotropic substances.  The Law on 
Chemicals (RM OG No. 11/07) obliged legal entities and entrepreneurs to register with the Ministry 
of Health in order to import, export, sell or store poisonous substances.  Carriers of poisonous 
substances were required to register with the Mini stry of Transportation.  Approvals to trade in 
poisonous substances were issued by the sanitary inspection of the Republic for wholesalers, and by 
the municipal sanitary inspection for retailers.   
67. Activity licenses were also required for fertilizer under the new Law on Fertilizer 
(RM OG No. 48/07).  Pursuant to Article 24 of the Law, any company or entrepreneur, whether domestic or foreign, could import fe rtilizer provided it had a distribution agreement for the territory of 
Montenegro; owned or leased bonded warehouses whic h met the requirements for storing fertilizer; 
employed at least one person with a college degree in the field of agriculture responsible for the 
acquisition, storage and handling of fertilizer; and was registered at the Register of Importers of the 
Ministry of Agriculture, Forestry, and Water Management.   
68. Importation of pesticides was subject to regist ration at the Register of Importers of the 
Ministry of Agriculture, Forestry, and Water Ma nagement (Article 41 of the Law on Pesticides, 
OG MNE No. 51/2008).  Any registered company or en trepreneur, whether domes tic or foreign, could 
import pesticides authorized for use in Monteneg ro.  Importers not licensed for distribution or 
wholesale of pesticides in Montenegro were requi red to deliver the imported pesticides only to 
companies licensed for such activities.  
69. Some Members expressed concern about Mont enegro's regime governing trading rights, 
recalling that the right to import (and export) produc ts without establishing a subsidiary or physical 
presence was a fundamental principle of the WTO.  Whether such a requirement applied "equally" to 
domestic and foreign suppliers wa s of no consequence as domestic suppliers, by definition, would 
have an established presence in Montenegro whereas foreign suppliers would not.  The establishment 
requirement was an unnecessary obstacle to importa tion, and it would be a violation of the GATT 
Articles III and XI to require an investment in orde r to be allowed to import.  The higher charge 
applied to renew an expired licence relative to  an unexpired licence also appeared unjustified 
according to the GATT Article VIII.  While appreci ating the need to protect consumers, some  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 23 
 
 
 Members failed to understand how a requirement fo r foreign pharmaceutical companies to establish a 
subsidiary in Montenegro in order to import, woul d further this objective.  In any case, the measure 
restricted the right to trade imported pharmaceutical  goods in violation of Articles III and  XI:1 of 
the GATT 1994.  A Member also questioned the rati onale behind the measure  prohibiting individual 
entrepreneurs to import for wholesale trade. 
70. The representative of Montenegro replied that Montenegro was aware of the problem posed 
by the requirement to be established in Monteneg ro to import or export and had amended the Customs 
Law appropriately (OG MNE No. 21/08).  The ame ndments eliminated the establishment requirement 
for both legal and natural persons wi shing to engage in import and e xport activities, and provided for 
the right of persons not established in Montenegro to participate in all customs procedures, including 
import and export, in full conformity with th e GATT Articles III and XI.  Foreign persons not 
established in Montenegro could now act as importers of record.  They did not need to register at 
Customs or to deposit any surety in order to import,  but they had to be represented by an agent in 
Montenegro.  Foreign persons could choose any comp any or entrepreneur established in Montenegro 
and registered with the customs authorities to be his/ her agent.  Agents were required to register at 
Customs.  The application should be accompanied by a copy of the Certificate of Registration issued 
by the Commercial Register.  She noted that the im porter of record remained the exclusive owner of 
the goods at all times and the only party who had the right to dispose of the goods and was liable for 
all the duties and charges associated  with customs clearance.  She added that foreign persons not 
established in Montenegro did not have the right to distribute goods in Montenegro.  However, such 
persons were free to select a distributor or distribut ors of their choice, provided such a distributor or 
distributors had the right to distribute their respective products in Montenegro.   
71. The Law on Medicines had also been amended to make Montenegro's activity licensing 
regime for medicines compliant with the GATT Articles III and XI (OG MNE No. 18/08).  Pursuant 
to Article 61, any company, whether Montenegrin or foreign, including legal persons not established 
in Montenegro, could import medicines provided the company was registered at the Drug Agency.  Persons not established in Montenegro were requi red to deliver the imported medicines only to 
companies licensed for such activities.   Such persons did not have the right to distribute or sell them 
in any other way in Montenegro.  She added that  implementing regulations concerning the right of 
importers without a distribution or wholesale licence to import were being deve loped.  In addition, 
amendments to the Law on Medical Devices were exp ected to be adopted by the end of 2008.  These 
amendments would allow persons not established in  Montenegro to import medical devices under the 
same procedures as medicines.  She added that th e new Law on Internal Trade (OG MNE No. 49/08), 
which had been adopted by the Parliament on 15  August 2008, had remove d the prohibition against WT/ACC/SPEC/CGR/4/Rev.2 
Page 24  
 
 individual entrepreneurs to import for wholesale tr ade.  All these amendments provided for a clear 
distinction between the right to import and the ri ght to distribute.  In her view, Montenegro's 
legislation was in conformity with Articles III and XI of the GATT 1994. 
72. The representative of Montenegro confirmed th at from the date of accession Montenegro 
would ensure that its laws and re gulations relating to the right to import and to export goods and [the 
implementation of such laws and re gulations] [their implementation] w ould be in full conformity with 
WTO obligations, including Articles VIII:1(a), XI:1, and III:2 and III:4 of the GATT 1994.  She also 
confirmed that, to this end, individuals and firms,  regardless of national origin, would be able to 
import and export products as impor ters or exporters of record, w ith no requirement of physical 
presence or investment in Montenegro [, if they ar e represented by a customs agent].  [Other than with 
respect to those goods set out in Table [x], the sole condition to serving as importer or exporter of 
record would be to register with the relevant M ontenegro authority as described in paragraph [y].]  
The Working Party took no te of these commitments. 
A. IMPORT REGULATIONS 
- Ordinary customs duties  
73. The representative of Montenegro said that a new Law on Customs Tariff had been enacted 
on 7 December 2005.  The new Law had entered in to force on 1 January 2006, replacing the Decree 
on Customs Tariff (RM OG, Nos. 47/03 and 25/05).  The Law, based on HS 2002 with changes agreed in 2004, conformed to the nomenclature of th e EU at the eight-digit level.  The applied tariff 
rates ranged from 0 to 30 per cent ad valorem .  Compound duties were levied on some agricultural 
goods.  She added that a new Law on Amendments and Modifications of the Law on Customs Tariff (RM OG No. 17/07) had been enacted in March 2007.  Montenegro's customs tariff nomenclature had 
been harmonized with the combined nomenclat ure of the EU pursuant to the Decree on the 
Harmonization of the Customs Tariff Nomenclature for the Year 2008, adopted on 
20 December 2007, and the Law on Ratification of the Temporary Agreement on Trade between 
Montenegro and the EU.  The new customs tariff based on HS 2007 comprised 9,767 tariff lines at the 10-digit level.   
74. Specific duties were applied on certain fruit and vegetables (Table 2) pursuant to the new Law 
on Customs Tariff - the Decision on Seasonal Customs Duties on Import of Certain Agricultural 
Products had been abolished with the entry into force of the Law in January 2006.  Specific duties 
were an integral part of Montenegro's customs tariff.   She stated that any sp ecific duties applied in the 
future by Montenegro as a WTO Member would be within the bound rates negotiated during the  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 25 
 
 
 accession process.  She further confirmed that Monteneg ro would bind all its tariff rates of duty on all 
imported goods. 
75. Montenegro undertook bilateral market access negotiations on goods with members of the 
Working Party.  The results of these negotiations are contained in the Schedule of Concessions and 
Commitments on Goods (document WT/ACC/CGR/.../Add.1). 
Table 2:  Specific Duties  
HS 2007 Description 
0701 Potatoes, fresh or chilled: 
0701 90 - Other: 
0701 90 50 00 ---New, from 1 January to 30 June 
0702 00 00 Tomatoes, fresh or chilled 
0702 00 00 10 - From 1 April to 31 August 
0707 00 Cucumbers and gherkins, fresh or chilled: 
0707 00 05 - Cucumbers: 
0707 00 05 10 - - From 1 April to 30 June 
0707 00 90 - Gherkins: 
0707 00 90 10 - - From 1 September to 31 October  
0805 Citrus fruit, fresh or dried: 
0805 20 -Mandarins (including tangerines and satsumas); clementines, wilkings and similar 
citrus hybrids: 
0805 20 10 - - Clementines: 
0805 20 10 10 - - - From 1 October to 31 December  
0805 20 30 --Monreales and satsumas: 
0805 20 30 10 - - - From 1 October to 31 December 
0805 20 50 - - Mandarins and wilkings: 
0805 20 50 10 - - - From 1 October to 31 December  
0805 20 70 - - Tangerines: 
0805 20 70 10 - - - From 1 October to 31 December  
0805 20 90 - - Other: 
0805 20 90 10 - - - From 1 October to 31 December  
0806 Grapes, fresh or dried: 
0806 10 - fresh: 
0806 10 10 - - Table grapes: 
0806 10 10 10 - - - From 1 July to 30 September  
0806 10 90 - - Other: 
0806 10 90 10 - - - From 1 July to 30 September  
0807 Melons (including watermelons) and papaws (papayas), fresh:  
0807 11 00 - - Watermelons: 
0807 11 00 10 - - - From 1 July to 31 August  
0808 Apples, pears and quinces, fresh:  
0808 10 - Apples: 
0808 10 10 00 --Cider apples, in bulk,  from 16 September to 15 December  
0808 20 - Pears and quinces: 
  - - Pears: 
0808 20 10 00 ---Perry pears, in bulk, from 1 August to 31 December  
0809 Apricots, cherries, peaches (including  nectarines), plums and sloes, fresh:  
0809 30 - Peaches, including nectarines: 
0809 30 90 - - Other: 
0809 30 90 10 - - - From 1 June to 31 August WT/ACC/SPEC/CGR/4/Rev.2 
Page 26  
 
 HS 2007 Description 
0810 Other fruit, fresh: 
0810 50 00 - Kiwifruit: 
0810 50 00 10 - - From 1 November to 31 March  
 
- Other duties and charges  
76. The representative of Montenegro said that an a dditional levy had been imposed on 124 tariff 
lines pursuant to the Decree on Special Charge on Importation of Agricultural and Food Products 
(RM OG Nos. 61/03 and 63/03).  The Decree had been  abolished with the entry into force of the Law 
on Customs Tariff in January 2006.  She acknowledged that the "special charge" had been maintained 
to protect domestic production and t hus had not constituted a charge or fee for services rendered.  
She added that the "special charge" had been c onverted to a specific element in the compound duty 
rates, applied to 311 agricultural tariff lines pursu ant to the Law on Customs Tariff, as amended in 
March 2007.   
77. The representative of Montenegro confirmed that  Montenegro would not list any "other duties 
and charges" in its Schedule of Concessions and Commitments on Goods under Article II:1 (b) of 
the GATT 1994, binding such charges at "zero" from the date of accession.  The Working Party took 
note of this commitment. 
- Tariff rate quotas, tariff exemptions  
78. The representative of Montenegro said that Mont enegro did not apply tariff rate quotas except 
in the context of the free trade agreements w ith Albania, Croatia, and Moldova.  Information 
concerning the tariff rate quotas established for "sen sitive" agricultural products was provided in 
document WT/ACC/CGR/3/Add.1, Annex 9.   
79. The representative of Montenegro said that th e procedure for obtaining tariff exemptions was 
laid down in the Decree on Procedure for Rea lization of Rights on Customs Duty Exemption 
(RM OG No. 22/03).  Article 184 of the Customs Law (RM OG Nos.7/02, 38/02, 72/02, 21/03 and 31/03) provided for tariff exemptions for (i) goods specified by an international Agreement 
(i.e. FTA) binding on Montenegro; (ii) exchanges of goods of non-commercial nature (no payment) 
between natural persons; (iii) meda ls and awards at internationa l events, presents as part of 
international relations; (iv) goo ds brought into Montenegro as humanitarian assistance, to be 
distributed free of charge; (v) equipment for the us e of humanitarian organizations or handicapped 
people; (vi) goods satisfying "basic human necessiti es" (e.g. food, medications, clothes, and bed 
linen); and (vii) trademarks, patents, designs, s upporting documents, and application forms forwarded  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 27 
 
 
 for the registration of copyright and industrial proper ty rights.  Exempt were also application forms 
and documents submitted to the State authorities, ma terials representing evidence in courts and other 
proceedings, printed material exchanged betw een public institutions and banks, securities, 
submissions to international contests organized in Montenegro, official trade documents, and letter 
mail.   
80. Montenegro also accorded tariff exemptions fo r fire-prevention and fire-fighting equipment; 
goods inherited by residents of Montenegro; im ports for the reconstruction, maintenance and 
restoration of protected cultural monuments, approved by the competent authority; goods to be used in museums, archives, restoration, lite rary activities, art, theatre and musicals, and filming activities 
(subject to the approval of the competent authorit y); goods donated to cultura l institutions and other 
non-profit cultural activity upon approval of the co mpetent authority; goods brought by scientists, 
writers and artists as own works; equipment not produced in Montenegro imported by State 
authorities; and investment goods brought into Mo ntenegro by a foreign party in accordance with 
relevant legislation.  Montenegrin citizens living within five kilometres of the State border, and owning plots of land in such a strip of Montenegro's neighbours were able to bring into Montenegro 
the agricultural, forestry or fishing yields from these plots free of import duty.  Goods falling under 
this provision - established to facilitate the move ment of people and goods in border areas - were 
intended for personal use and not for the general stream of commerce.  The catches of sea-going 
fishing vessels of Montenegro were exempt pursuant to Article 188 of the Customs Law.  Article 185 
provided an exemption, upon request, for domestic goods  exported and subsequently returned in the 
same state to the customs territory of  Montenegro within two years.   
81. The representative of Montenegro stated that  Montenegro would administer and apply its 
tariff rate quotas and tariff exemptions in conformity  with the WTO Agreement, including Articles I, 
II, VIII, X and XIII of the GATT 1994 and the Ag reement on Import Licensing Procedures.  The 
Working Party took note of this commitment. 
- Fees and charges for services rendered 
82. The representative of Montenegro said that Article 291 of the Customs Law 
(RM OG Nos. 07/02, 38/02, 72/02 and 21/03) allowed the customs administration to charge a fee for 
customs clearance.  The fee could be a specific amount or ad valorem.   Depending on the procedure 
applied, the customs clearance fee ranged from 0 to 1 per cent ad valorem,  or €3 to €120, according to 
the Decree on Amount and Procedure of Charging of Fees for Services Rendered by the Customs Authorities (RM OG Nos. 20/03 and 62/04).   WT/ACC/SPEC/CGR/4/Rev.2 
Page 28  
 
 83. Customs also applied charges for specific servi ces such as temporary storage and storage of 
goods at customs (€20 per declaration), issuing opini ons on the classification of goods (€100 or €120 
depending on the need for testing), and assessment s of the origin of goods (€50).  The Law on 
Administrative Fees (RM OG Nos. 55/03 and 46/04) determined a number of administrative charges related to importation or exportation, notably for documentation and certificates arising from 
veterinary, sanitary, and phytosanitary inspecti ons; customs forms, declarations, controls, 
classifications, complaints; and for the issuance of import and export licenses.  The fees, which were 
all stipulated in specific amounts, are listed in Table 3.   Certificates of origin (Form A) were issued by 
the Chamber of Commerce against payment of €8.  Sh e confirmed that a certificate of origin was not a 
mandatory customs document for importation or exportation. 
84. Quality controls on imported or exported agricultu ral and food products were effected against 
a fee of €4.60 for shipments of up to 20 tons, and €0.30 for every additional ton, according to the 
Decision on the Level and Method of Paying Fees C overing Costs of Quality Control of Agriculture 
and Food Products and Products Ma de Thereof Destined for Export or Import (FRY OG Nos. 62/97 
and 55/98).  Charges had also been established acco rding to the Decree on Fee Charged for Health 
Inspection of Plant Shipments and Control of Pe sticides and Fertilizers in Traffic Through the 
Territory of FRY (FRY OG No. 71/00), and the Decision on Fee Charged for Veterinary-Sanitary Control of Animals, Products, Raw Materials and Waste of Animal Origin in Production and Traffic 
(RM OG Nos. 51/03 and 56/03).  The veterinary-sanitary fee varied from 0.06 to 1 per cent 
ad valorem .   
85. Some Members noted that Montenegro applied ad valorem  charges for customs clearance and 
for veterinary-sanitary controls, a nd recalled that fees and charges not related to a specific service or 
assessed on an ad valorem  basis were WTO-inconsistent, as such fees were required to approximate 
the cost of services rendered, and not to be based on the value of the good assessed, or applied for the 
purpose of raising revenue for general purposes.  Mont enegro was requested to confirm that it would 
eliminate fees not meeting the requirements of Ar ticle VIII of the GATT 1994, or revise the fees to 
bring them into conformity with WTO rules.   
86. In reply, the representative of Montenegro said that her Government was aware of the issue 
and that all non-conforming fees  were being amended to be fully compliant with the GATT 
Article VIII prior to the date of accession.  The ve terinary-sanitary fee had been amended through the 
Decision on the Level of Compensation for Veteri nary-Sanitary Control in  the Trade Across the 
Border of the Republic of Montenegro (RM OG No. 50/05).  As for the customs clearance fee, it had 
been revised through the Law on Amendments and Modifications of the Customs Law of  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 29 
 
 
 October 2006 (RM OG No. 66/06); the Decree on the Amount and Procedure for Charging Fees for 
Services Rendered by the Customs Authorities of December 2006 (RM OG No. 04/07); and the 
Regulation on the Kind, Amount and Manner of Payment of Fees for the Services Provided by the 
Customs Authority issued in 2008 (RM MNE No. 47/08).  Customs fees were now fixed amounts 
reflecting the approximate costs of services rende red.  Pursuant to the Regulation, a customs 
administration fee of €15 per customs officer involved was applied for the clearance of goods at a 
venue not designated for such purpose or outside the normal working hours.  She confirmed that 
Montenegro no longer applied any ad valorem  fees on or in connection with importation or 
exportation. 
87. The representative of Montenegro confirmed that  all fees and charges for services applied in 
connection with importation and exportation woul d be applied in conformity with the WTO 
Agreement, including Articles VIII and X of th e GATT 1994.  She further confirmed that, upon 
request, Montenegro would provide WTO Members w ith information regarding the application and 
level of such fees and charges, revenues collected and their use.  The Working Party took note of 
these commitments. 
- Application of internal taxes to imports 
88. The representative of Montenegro said that al cohol and alcoholic beverages, tobacco, and 
mineral oils, derivatives and substitutes were subject ed to excise tax according to the Law on Excise 
Tax (RM OG Nos. 65/01, 12/02 and 76/05) of 28 December 2001.  The products concerned and the respective rates are listed in Table 4.  Excise taxes on imports were collected at the time of 
importation by the customs authorities, whereas th e tax authorities collected the tax on domestically-
produced goods when the goods were released for free circulation.  Ex cise taxes were not collected on 
exports.  Following Montenegro's independence in J une 2006, the special taxation regime applied in 
trade with Serbia had been eliminated.  Goods im ported from Serbia were now subject to excise taxes 
as any other imported good and goods  exported to Serbia were exempt from any such taxes.  She 
added that natural persons making small quantities of alcoholic bevera ges solely for personal use were 
exempt from the excise tax. 
89. Ethyl alcohol (ex HS 2207) used as a raw mate rial in the manufacture of fermented products, 
vinegar, and chemical and cosme tic products (only denatured ethyl alcohol) was exempt from excise 
tax.  Chocolate containing alcohol (ex HS 1806) w as exempt provided the amount of alcohol did not 
exceed 8.5 litres of pure alcohol per 100 kilograms; the limit for other food items was five litres of 
pure alcohol per 100 kilograms.  Institutions in th e health sector could obtain a licence from the tax 
authorities allowing them to purchase ethyl alcohol for medical purposes without payment of the WT/ACC/SPEC/CGR/4/Rev.2 
Page 30  
 
 excise tax.  The excise tax was not paid on mineral o ils used as fuel in air and maritime traffic and as 
fuel for fishing boats (except when  used for private purposes), for th e production of electric energy or 
the joint production of electric and heating energy, for further processing, or for injection in blast 
furnaces for chemical reduction purposes as an additive to coke as the basic fuel.  Reimbursement and 
drawback of excise duties was available in all these cases, as well as for exported goods on which 
excise tax had been paid; importers paying excise du ties and subsequently returning the goods in an 
unchanged condition; and licensees acquiring excise goods at a price including the excise, and using 
such goods in an excise goods warehouse for the production of excise goods.   
90. Article 32 of the Law On Excise Tax exempted from excise tax goods sold on board vessels 
and aircraft in international transport; excisable goods  in travellers' personal l uggage within the limits 
established by customs legislation; and fuel in the standard reservoirs of motor vehicles, vessels, and 
aircraft provided the fuels were not intended for further sale and exempt from the payment of import 
duties in accordance with the custom s legislation.  The excise tax was not payable on goods brought 
into Montenegro for the official needs of diplomatic and consular representative offices accredited in 
Montenegro, international organizations (by intern ational agreement), and for the personal needs of 
their staff pursuant to Article 31 of the Law.  Th e Ministry of Foreign Affairs issued certificates 
verifying that the application of the excise tax ex emption was subject to a reciprocity requirement 
based on an international agreement.   
91. Noting that the excise tax rates applied to still wines (220421 and 220429) were very different 
from those applied to other ferm ented beverages, including similar products, a Member asked 
Montenegro to explain how it ensured that importe d grape wines were not taxed at a less favourable 
rate than like domestic or importe d products, as required by Articles I and III of the GATT 1994.  In 
response, the representative of Montenegro noted  that imported and domestic products, including 
wines from grape, were subject to the same tax rate in accordance with Article 2 of the Law on Excise 
Taxes.  There was no exception to this rule.  She a dded that Montenegro prod uced grape wines, beer 
and grape brandy.   
92. The representative of Montenegro said that a sal es tax had been replaced by value added tax 
on 1 April 2003 pursuant to the Law on Value Adde d Tax (RM OG Nos. 65/01, 12/02, 38/02, 72/02 
and 21/03).  VAT was levied on imported and domesti cally-produced goods at a rate of 17 per cent.  
A reduced rate of 7 per cent was applied to some  products and services.  The tax base for imported 
goods was the customs value inclusive of import duty and excise tax, if applicable, as well as 
transportation and distribution costs to the first d estination in Montenegro.  The obligation to pay 
VAT arose at the same ti me as the obligation to pay customs duty and other import charges.  Goods  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 31 
 
 
 temporarily exported for processing, repair or m ounting were assessed VAT upon return on the value 
added abroad and any materials used for these purposes.  Certain goods and services were VAT 
exempt (see Tables 5(a) (goods) and 5(b) (services)).   In addition, medicines and medical devices 
were zero rated in accordance with the Law on Amendments to the Law on Value Added Tax 
(RM OG No. 76/05).  In response to a question, she confirmed that the excise tax was included in the 
taxable base of domestic goods subject to VAT when  the products were placed on the market for final 
consumption. 
Table 5 (a):  Goods Exempt from VAT  
Tariff Number Product Name 
4907.00 10 00, 4907.00 30 00, 4907.00 90 00 Post mark, administrative and judicial fees and tax mark 
7106, 7108, 7110 Gold and other precious metals 
 
Table 5 (b):  Services Exempt from VAT  
Services Exempt from VAT in the Public Interest: 
1. Public postal services performed by the post office of Montenegro 
2. Health services and care and delivery of goods including supply of human organs, blood and human 
milk performed in accordance with the law go verning the field of health care activities 
3. Social security services and th e supply of goods directly linked to social security services that are 
performed in accordance with the regulations gove rning the field of soci al security services 
4. Services in pre-school education and the education and training of children, young people and adults, 
including the supply of goods and services direc tly linked to these activities, provided these activities 
are performed in accordan ce with the regulations governing this field 
5. Services and deliveries of goods by nursery sch ools, primary and secondary schools, universities, and 
by student catering and boarding institutions 
6. Services related to culture including tickets for cu ltural events and supply of goods directly related to 
those services provided by non profit organizations in accordance with regulation governing the field of 
culture 
7. Services related to sport and sport education, which perform non-profit organizations (associations, etc) 
8. Monthly subscription on radio and TV program 
9. Religious services and supply of goods directly linked to religious services performed by religious 
institutions in order to satisfy the needs of the faithful, in accordance with the regulations related to 
those communities 
10. Services provided by non-Government organizati ons established in accordance with the regulations 
governing the activities of those organizations unless it is unlikely that such exemptions would lead to a distortion of competition 
Other VAT exempt services: 
1. Insurance and reinsurance services, including se rvices provided by insura nce brokers and agents 
2. Supply of immovable propriety, except the first transfer of the ownership rights that is the rights to 
dispose of newly-constructed immovable property 
3. Services of leasing and subletting of residential houses, apartments and permanent residential premises 
for longer than 60 days and lease of agricultural land or forests, which are registered in land books WT/ACC/SPEC/CGR/4/Rev.2 
Page 32  
 
 4. 
(a)  
(b) 
 (c) 
 
(d) 
 
(e) Banking and financial services, such as: 
Approving and managing credits, and approving and managing guarantees that is other forms of credit insurance on the part of the lender; 
Services relating to the management of deposits, savings, bank accounts, conducting payment 
transactions, transfers, executing due liabilities, cashi ng cheques or other financial instruments, except 
for recovery of debts and factoring; 
Transactions, including the issuing of bank notes an d coins, which are legal tender in any country, 
excluding collector items; the collector items shall be considered to be coins of gold, silver and other 
material, bank notes not in use as legal tender, and coins with a numismatic value; 
Trading in shares that is other forms of participati on in companies, bonds and other securities, including 
their issuance, except for the safekeeping of securities; 
Investment fund management.   
5. Services of games of chance 
 
93. The VAT exemptions applied equally to im ported and domestically-produced goods.  In 
addition, no VAT was levied on (i) goods in transit,  (ii) goods re-imported in an unchanged state by 
the person exporting the goods; (iii) re-imported goods having been subject to a service abroad, 
provided the refund of VAT had not been recognized there; (iv) imports by State bodies or humanitarian organizations to be distributed free of ch arge to alleviate social needs (excluding coffee, 
alcoholic beverages, tobacco and tobacco products, and motor vehicles other than rescue vehicles); 
(v) duty-free goods imported by diplomatic missions, c onsulates, international organizations and their 
staff within the limits and conditions set forth in  international conventions  and as approved by the 
Minister of Foreign Affairs; (vi) services relate d to imported goods, provided the value of such 
services was included in the tax base; and (vii) go ld, other precious metals, bank notes, and coins 
imported by the Central Bank of Montenegro.  Temporarily imported goods were exempt from VAT 
provided they were also exempt from customs duti es according to the customs legislation.  Other 
special exemptions (Article 30 of the Law) relate d to imported goods to be stored in an excise 
warehouse, imports to be submitted to the customs authorities and stored temporarily in accordance 
with customs regulations, goods destined to a free customs zone, and imports to be subjected to a 
customs warehousing procedure or import proced ure for export under a suspension arrangement.  
VAT exempt goods subsequently put into free circ ulation would be subject to VAT (to the same 
amount that should have been  applied upon importation). 
94. The representative of Montenegro added that fa rmers, not themselves registered to pay VAT 
but delivering agricultural or forestry goods and services to registered taxpayers, could claim 
compensation for VAT charged on their inputs at a flat rate of 5 per cent (Law on Amendments to the Law on Value Added Tax (RM OG No. 76/05)).   
95. Asked to explain why banking, insurance and games of chance were exempt from VAT, the 
representative of Montenegro said that these servi ces were regulated under separate legislation,  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 33 
 
 
 i.e. the Law on Tax on Insurance Premium (RM OG  Nos. 27/04 and 37/04) and the Law on Games of 
Chance (RM OG No. 52/04).   
96. In response to specific questions, the representativ e of Montenegro stated that (i) the Law on 
Excise Tax and the Law on Value Added Tax were the only laws governing the taxation of imports 
and domestic goods, (ii) all domestic taxes levied on goods were applied no less favourably to imports 
than to similar domestically-produced goods per Artic le III of the GATT, (iii) the eligibility for the 
excise tax exemption for mineral oil used in blast  furnaces was not subject to any export performance 
or import substitution requirements, and that (iv) imports from, and exports to, all countries received 
identical treatment in the application of domestic taxes.  She added that the Law on Value Added Tax 
was undergoing revision with a view to making cu rrently VAT-exempt goods subject to VAT at a 
reduced rate of 7 per cent.   
97. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would apply its internal taxes, including excise ta xes and value added taxes, in a non-discriminatory 
manner to imports from all WTO Members and to domestically produced goods, in accordance with 
the WTO Agreement, including the Agreement on Agriculture, the Agreement on Subsidies and 
Countervailing Measures and Articles I and III of th e GATT 1994.  The Working Party took note of 
this commitment. 
- Quantitative import restrictions, including prohibitions, quotas and licensing systems  
98. The representative of Montenegro said that Article 14 of the Foreign Trade Law 
(RM OG No. 28/04) stipulated that goods could not be  imported if trade in such goods was banned in 
Montenegro.  Her Government could also ban impor ts, temporary imports, or good in transit banned 
under the legislation of the country of export, origin , or destination.  The Decision on the Control List 
for Export and Import of Goods (RM OG No.44/04) of 17 June 2004 contained a list of dangerous 
waste banned for importation into Montenegro.  In  order to prevent pests and diseases endangering 
human or animal health, Montenegro could prohibi t imports of animals, plants, animal and plant 
products and other goods from specific countri es or territories based on international 
recommendations and guidelines, available scientific ev idence, and the animal and plant health status 
of such countries or territories.  Any such r estrictions were applied consistently with the 
Agreement on the Application of Sanitary and Ph ytosanitary Measures.  A list of imported goods 
prohibited according to the Law on Plant Health Protection (RM OG No. 28/06) is reproduced in 
Table 6.  According to Article 15 of the Forei gn Trade Law, quantitative import restrictions could 
only be applied in the form of safeguard measures.   WT/ACC/SPEC/CGR/4/Rev.2 
Page 34  
 
 99. The representative of Montenegro said that the Decision on Control List for Export and 
Import of Goods (RM OG No. 44/04) defined the goods subject to licenses, approvals or certificates.  
The full list - more than 30 pages of items - was submitted in document WT/ACC/CGR/3/Add.1, 
Annex 11.  She noted that a revised Decision on Cont rol List for Export, Import and Transit of Goods 
(RM OG No. 19/06), including the GATT/WTO justifications for the specific measures, had been issued on 16 March 2006.  The revised Decision in cluded a general import/export control list, and 
specific lists enumerating narcotics, precursors,  substances damaging the ozone layer, wastes, 
endangered wild plant and animal species (CITES) , and protected rare, rarefied, endemic and 
endangered plant and animal species.  She noted th at the number of products subject to non-automatic 
import licensing (listed in Annex I of the revised  Decision) had been substantially reduced.  
Information on Montenegro's non-automatic impor t licensing procedures was provided in document 
WT/ACC/CGR/18.   
100. The Foreign Trade Law (RM OG No. 28/04) and the Decree on Implementation of Foreign 
Trade Law (RM OG No. 52/04), the Decision on Control list for Export, Import and Transit of Goods (RM OG No. 45/07), the Law on Administrative Procedure (RM OG No. 60/03), and the Law on 
Administrative Dispute (RM OG No. 60/03) constitute d the general legislative basis for the issuance 
of import licenses.  In addition, depending on the product, licenses were issued on the basis of the 
Law on Foreign Trade in Arms, Military Equipm ent and Dual Use Goods (SM OG Nos. 7/05 
and 8/05), the Decree on Taking Over Respons ibilities from the Law on Foreign Trade in Arms, 
Military Equipment and Dual Use Goods (RM OG  No. 40/06), the Environmental Protection Law 
(RM OG Nos. 12/96 and 55/00), the Law on the Basis of Environment Protection (FRY OG No. 24/98), the Law on Transportation of Hazar dous Substances (FRY OG No. 27/90), the Law on 
Production and Circulation of Waste Substances (FRY  OG Nos. 15/95,  28/96 and 37/02), the Law on 
Protection from Ionizing Radiation (FRY OG No. 46/96), Decision on Placement under Protection of 
Specific Plant and Animal Species (RM OG No. 76/06), the Law on Production and Circulation of 
Narcotics (FRY OG Nos. 46/96 and 37/02), and the Veterinary Law (RM OG No. 11/04).  In response 
to a question she noted that the legal provisions implementing the procedural requirements of the 
WTO Agreement on Import Licensing Procedures, includi ng those of Articles 1 to 3, were to be found 
in the Foreign Trade Law (Articles 19 to 27a) an d the Decree on Implementation of Foreign Trade 
Law (Articles 3 to 7). 
101. The non-automatic licenses were not intended to r estrict the quantity or value of imports.  The 
system operated on the basis that the importers s hould only approach one single administrative organ, 
and failure to meet the ordinary criteria would be the only circumstance under which applications 
could be refused.  No application would be refused  for minor documentation errors which did not alter  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 35 
 
 
 basic data.   Such refusal (and the reason) would always be  communicated to the applicant in writing, 
and the Ministry's decision could be challenged be fore the Administrative Court.  Non-automatic 
licenses should be delivered within 30 days (15 days  for arsenic, narcotics and precursors); in practice 
the period could be much shorter (about one week).   No deposit or advance payment was required.  
The validity of the licenses and the cost differed from one Ministry to another.  Licenses issued by the 
Ministry for Economic Development were valid for one year at a cost of €60.  The Ministry of 
Tourism and Environmental Protection charged € 50 for a one year licence for endangered and 
protected species of wild flora and fauna, and for substances depl eting the ozone layer, and €200 for 
one year licenses to import radioactive materials.  The Ministry of Health, Labour and Social Welfare 
charged €30 for licenses valid from one to four months.  The period of validity of the licenses delivered by the Ministry of Health, Labour and Social Welfare was shorter due to the dangerous 
nature of the products concerned (a rsenic, narcotics and precursors) and the necessity to control them 
more closely.  She added that the Ministry for Economic Development had initiated discussions with 
the other relevant State authorities in order to harmonize the licensing procedures.  She provided 
information on the validity of import licen ses and the products covered in Table 7. 
Table 7: Import Licenses
 
Ministry in Charge Products Concerned Validity 
The Ministry for 
Economic Development  - Derivatives containing only nitro or only nitro's groups 
(1 tariff item in Chapter 29); 
- Explosive and pyrotechnic products (6 tariff items in 
Chapter 36); 
- Polycarbonates (1 tariff item in Chapter 39); - Precious metals and metals clad with precious metal (15 
tariff items in Chapter 71); 
- Tanks and other armored fighting vehicles (1 tariff item in 
Chapter 87); 
- Warship (1 tariff item in Chapter 89); 
- Lasers and other optical appliances  and instruments (2 
tariff items in Chapter 90); and 
- Arms and ammunition tariff items in Chapter (28 tariff 
items in Chapter 93). One year. 
The Ministry of 
Tourism and 
Environmental Protection - Uranium and thorium ores and concentrates (4 tariff items 
in Chapter 26); 
- Natural uranium (25 tariff items in Chapter 28); - Nuclear reactors (4 tariff items in Chapter 84); 
- Apparatus based on the use of X-rays or of alpha, beta or 
gamma radiations (3 tariff items in Chapter 90); 
- Wastes; 
- Endangered  and protected speci es of wild flora and fauna; 
- Substances damaging the ozone layer; and - Protected rare, rarefied, endemic and endemic and 
endangered plant and animal species. One year. 
The Ministry of 
Health, Labour and Social Welfare - Arsenic (1 tariff item in Chapter 28); 
- Narcotics - including derivates and salts (48 tariff items in 
Chapter 12, 13 and 29); and 
- Precursors (22 tariff items in Chapter 28 and 29). From one to 
four months. WT/ACC/SPEC/CGR/4/Rev.2 
Page 36  
 
  
102. Some Members noted that Montenegro had passed a Law on Waste Disposal in 2005, 
abolishing an earlier requirement obliging the importer to demonstrate that the particular quality of 
the imported waste was not available in the domestic market.  However, the Law would not enter into 
force until 1 November 2008.  Montenegro was requ ested to explain the reason for the delay, and 
outline the requirements applied to imported waste in the interim period.   
103. In reply, the representative of Montenegro said that Article 8 of the Rulebook on 
Documentation to be Submitted along with Request for Issuance of Import, Export and Transit of 
Wastes (FRY OG No. 69/99) required a statement from the processor that the imported waste did not 
exist in the domestic market in the necessary quanti ties.  This provision would be abolished by the 
date of Montenegro's accession to the WTO.  The entry into force of the Law on Waste Disposal had 
been delayed to give all municipalities enough time to  establish sanitary landfills - an obligation under 
the new Law.   
104. A Member stated that Montenegro had a leg itimate interest in protecting its citizens from 
unsafe products, but that WTO rules made ample provision for technical regulations for such 
protection, rather than the broad application of import licensing procedures burdening trade.  Many of 
the justifications offered by Montenegro for its li censing regime suggested that the concerns should be 
addressed through non-discriminatory and transparent TBT or SPS technical regulations.  The 
Member requested Montenegro to review its li censing regime and evaluate whether TBT or SPS 
technical regulations would better advance its objectiv es.  In reply, the representative of Montenegro 
said that the licensing regime had been reviewed with  a view to reducing the number of items subject 
to licensing.  However, the review had concluded that no currently applied licenses could be replaced 
by technical requirements or SPS measures.   
105. Concerned about the continued broad scope of Montenegro's licensing regime, some 
Members requested detailed information about the nu mber of import licenses issued by each Ministry 
as well as the total value of imported goods subject to licenses, recalling the extensive obligations to 
provide such information according to Article  3.5(a) of the Agreement on Import Licensing 
Procedures.  These Members also noted that Monten egro was amending the Foreign Trade Law to add 
provisions on automatic and non-automatic license s and that all by-laws deriving from the Foreign 
Trade Law, including the Decision on Control List fo r Export, Import and Transit of Goods, would be 
amended accordingly.  Montenegro had recognized th at the import licenses issued by the Veterinary 
Administration were WTO-inconsiste nt and would be abolished.  A Member failed to understand the 
need for licenses for "precious metals and metals clad with precious metal" and "TV apparatus and  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 37 
 
 
 sound recorders and reproducers".  Montenegro was also asked to explain why it required a non-
automatic licence for the export of ferrous a nd nonferrous scrap, designated as "non-hazardous 
waste", what criteria were applied for granting or denying the licence, and what environmental issue 
or provision of Article XX or XXI of the GATT 1994 were involved in requiring the import licence.  
A Member further enquired why importers were requi red to approach different Government agencies 
to obtain an import licence and why import licence fees and validity periods of import licenses varied 
by agency, which appeared to be burdensome for importers.   
106. The representative of Montenegro  provided information on the number of import licenses 
issued by each Ministry as well as the total value of imported goods subject to licenses in document 
WT/ACC/CGR/24/Add.3.  She added that Parlia ment had adopted the Law on Amendments and 
Modifications of the Law on Customs Tariff in Ma rch 2007, as well as amendments to the Foreign 
Trade Law.  The imposition of quantitative restrict ions and licensing requirements for import, export 
and transit was regulated by Section II of the Law on Foreign Trade.  In her view, this Law was in full 
conformity with the provisions of the GATT, incl uding Article XI.  The Decision on Control List for 
Export, Import and Transit of Goods  had entered into force in July 2007 (RM OG No. 45/07).  As part 
of this work, some of the non-automatic licenses had been converted into automatic licenses and 
import licenses had been abolished for a number of products, including preci ous metals and metals 
clad with precious metal; magnetic tape recorders an d other sound recording apparatus, whether or not 
incorporating a sound reproducing device; tanks a nd other armored fighting vehicles, motorized, 
whether or not fitted with weapons, and parts of such  vehicles; warship; some military weapons, other 
than revolvers, pistols and arms under heading 9307; and steel and household machinery.  As a result, 
only 116 goods - representing 1.19 per cent of Monteneg ro's tariff lines - were now subject to import 
licensing and 55 - 0.56 per cent of the tariff lines - to export licensing.  In her view, the Decision on Control List for Export, Import and Transit of Goods was in line with the Agreement on Import 
Licensing Procedures.  She noted that the goods liste d in Annexes 2 to 7 of the Decision were subject 
to licensing in accordance with Montenegro's obligations under the Convention on Psychotropic 
Substances, the Uniform Convention on Narcotics Dr ugs, the Vienna Convention on Protection of the 
Ozone Layer, the Montreal Protocol on S ubstances Depleting the Ozone Layer, the CITES 
Convention on International Trade in Endangered Species of Wild Fauna and Flora, and the Basel 
Convention on Transboundary Movement of  Hazardous Waste and its Disposal.   
107. She added that the Law on Administrative Fees  had been amended (RM OG No. 22/08).  The 
amendments provided for a uniform licensing fee of €50 conform to the GATT Article VIII.  She 
confirmed that the fee applied to licenses for all products, regardless of the Ministry to which the 
importer had to apply.  She explained that importe rs were required to approach different agencies WT/ACC/SPEC/CGR/4/Rev.2 
Page 38  
 
 because of the specificities of certain goods.  Res ponsibility for issuing licenses was entrusted to the 
authority having expertise in the relevant field.  The list of licensing authorities was contained in the 
Decision on Control List for Export, Import and Trans it of Goods and was publicly  available.  She did 
not consider this system burdensome.  She confirme d that all import licence requirements on fertilizer 
and pesticides had been abolished and replaced by the system of activity licenses.  She added that 
Montenegro had discontinued the licensing regime administered by the Veterinary Administration.  In 
her view, none of the remaining restrictions violated WTO rules. 
108. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would eliminate and would not introduce, re-introdu ce or apply quantitative restrictions on imports or 
other non-tariff measures such as licensing, quotas, ba ns, permits, prior authorization requirements, 
and other restrictions having equivalent effect, th at could not be justified under the provisions of the 
WTO Agreement, including measures listed in Table [x].  She further confirmed that the legal 
authority of Montenegro to suspend imports and exports or to apply licensing or other requirements that could be used to suspend, ban, or otherwise restrict the quantity of trade would be applied from 
the date of accession in conformity with the requirements of the WTO Agreement, including 
Articles XI, XII, XIII, XIX, XX, and XXI of the GATT 1994, and the Agreements on Agriculture, 
Sanitary and Phytosanitary Measures, Import Li censing Procedures, Safeguards and Technical 
Barriers to Trade.  The Working Party took note of these commitments. 
- Customs valuation 
109. The representative of Montenegro said that the Law on Ratification of the Agreement on 
Implementation of Article VII of the GATT and its associated Protocol (FRY OG 1/82 - international 
agreements), the Customs Law (Articles 29 - 45 - reproduced in document WT/ACC/CGR/3/Add.1, 
Annex 4), and the Decree on Implementation of th e Customs Law (RM OG No.15/03), constituted the 
principal basis for customs valuation rules and pr ocedures in Montenegro.  Montenegro submitted a 
completed questionnaire on the implementation a nd administration of the Customs Valuation 
Agreement in document WT/ACC/CGR/7, Annex 3.   
110. Having reviewed the legislation and the qu estionnaire, some Members sought further 
information regarding the possible conformity of Montenegro's legislation with the Agreement on 
Implementation of Article VII of the General Agre ement on Tariffs and Trade 1994, notably (i) the 
incorporation of the Interpreta tive Notes to the Agreement; (ii) other legislation addressing the 
transparency, commercial secrets, and right of admi nistrative and judicial appeal provisions of the 
WTO Agreement; (iii) any facility allowing importers to post a guarantee for duties owed to Customs 
in the form of a surety, bond, or other such instrument to clear th eir goods from Customs when a final  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 39 
 
 
 determination on the duties owed was being delayed;  and (iv) an explanation for how Article 36, 
paragraph 2 of the Customs Law conformed with Arti cle 6.2 of the Agreement.  A Member was also 
concerned that Article 74 of the Decree on Impl ementation of the Customs Law would not permit 
accurate implementation of the Interpretative Note to  paragraph 1(b) of Article 1 of the Agreement, 
which applied to all transactions, whereas the sc ope of Article 74 appeared to be limited to 
transactions between business partners.   
111. The representative of Montenegro replied that th e majority of the Interpretative Notes to the 
Agreement had been included in the Customs Law or in the Decree on Implementation.  The Customs 
Law and its implementing regulations had been  amended in October 2006 to include the few 
remaining Interpretative Notes.  The amendments ha d come into force on 1 January 2007.  Article 8, 
paragraph 3 of the Customs Law provided for the right of appeal of first instance decisions of the 
customs authorities.  The right of appeal to an independent judicial authority without penalty was 
provided generally in the Law on Administrative Disputes (RM OG No. 60/03), whereby any final 
administrative decision could be appealed to the Administrative Court or - as the case might be - to 
the Supreme Court of Montenegro.  Transparency, commercial secrets and the right of administrative 
and judicial appeal was not addressed in other legi slation.  Legislation governing trade secrets had 
been adopted in December 2007 (OG MNE No. 96/07) .  On item (iii), Montenegro had no specific 
provision on this issue, but Articles 189 to 200 of the Customs Law and the Implementing Regulations for the Customs Law (RM OG No. 15/03  and 81/06) regulated generally the issuance of 
guarantees for customs debt, and could be applicable  to these circumstances.  Pursuant to these 
provisions, the customs authority could request im porters to provide a guarantee to secure the 
payment of a single customs debt, including interest s accrued or that may accrue (single guarantee), or 
the payment of several customs debts or of a debt that may be incurred within a certain period of time 
(joint guarantee).  The amount of the guarantee wa s set by the customs authority.  Guarantees could 
take the form of a cash deposit (in Euro) on the account of the Customs Administration or customs 
office, or of a bank guarantee.  The validity of a bank guarantee could not be inferior to three months or to the period during which the debt could be incu rred plus 60 days.  If the term of the guarantee had 
expired and the debt had not been paid, in whole or in part, or if a debt could still be incurred, a new 
guarantee covering the debts secured by the previous guarantee had to be provided.  When a joint 
guarantee was presented, the Customs Administration confirmed receipt of the guarantee, entered the filing number of the guarantee into customs documents and promptly informed all the customs authorities of the guarantee received.  A single guara ntee simply had to be presented to the customs 
office.  Guarantees were returned after payment of the debt, once it had been determined that no 
further debt could be incurred.  She added that  Article 42 of the Customs Law and Article 126, 
paragraphs 2 and 3 of its impl ementing regulation enabled importe rs to withdraw their goods from WT/ACC/SPEC/CGR/4/Rev.2 
Page 40  
 
 customs with provision of a surety in the form  of a cash deposit or a bank guarantee covering the 
payment of customs duties for which the goods could be liable.  She confirmed that the prohibition 
under Article 36, paragraph 2 of the Customs Law a pplied only to non-residents.  Article 74 of the 
Decree had been amended by the Decree on the Ame ndments to the Decree on Implementation of the 
Customs Law (RM OG No. 81/06) to refer to the appr opriate provision (Article 30, paragraph 2) of 
the Customs Law.  In her opinion, the new Decr ee ensured the full comp liance of Montenegro's 
customs valuation legislation with WTO requirements.   
112. In response to a Member who invited Montenegro to adopt paragraph 2 of the Decision on 
Valuation of Carrier Media Bearing Software fo r Data Processing Equipment (Decision 4.1), the 
representative of Montenegro noted that the provisions of paragraph 2 of Decision 4.1 had been included in Article 43.1 of the Customs Law.   
113. The representative of Montenegro confirmed that , as from the date of accession, Montenegro 
would apply the WTO provisions concerning custom s valuation, including the Agreement on the 
Implementation of Article VII of the GATT 1994 and Annex I (Interpretative Note) thereto [and 
paragraph 2 of the Decision on Valuation of Carri er Media Bearing Software for Data Processing 
Equipment (Decision 4.1), providing that valuation of software was based on the value of the media].  
She further confirmed that, to this end, Montenegro  would not use any form of reference or minimum 
prices or fixed valuation schedules for the valuation of  imports and that all methods of valuation used 
would be in conformity with those provided fo r in the WTO Agreement on the Implementation of 
Article VII of the GATT 1994.  The Working Party took note of these commitments. 
- Rules of origin 
114. The representative of Montenegro said that Articles 23 to 28 of the Customs Law and 
Articles 13 to 67 of the Decree on Implementati on of Customs Law (RM OG No.15/03) laid down 
detailed provisions on rules of origin.  The Law defined non-preferential rules of origin for the 
purposes of applying the Customs Tariff (except for goods entering under free trade agreements), to 
apply measures established by other regulations governing trade in goods, and for the issuance of certificates of origin.  Goods were evaluated according to the "wholly obtained" criterion or - for goods produced in more than one country - where the imports had undergone the last substantial, 
economically justifiable processing.  Simple assembly of parts; treatment to preserve the 
characteristics of products during transportation a nd storage; labelling and marking; separation, 
sorting, sifting, rinsing or cutting; changes in quantity; and packing and re packaging of goods would 
not be considered substantial, economically justifiable processing.  Any processing undertaken for the 
sole purpose of circumventing the provisions of th e Customs Law would not be deemed authentic.    WT/ACC/SPEC/CGR/4/Rev.2 
 Page 41 
 
 
 115. Preferential rules of origin were stipulated in Montenegro's free trade agreements.  The origin 
was proven by the presentation of an EUR1 certificate of origin or an exporter's declaration.  The 
Customs Administration issued certificates of prefer ential origin, whereas non-preferential certificates 
of origin for domestic goods were issued by the Chamber of Commerce.  She confirmed that the 
European Community was treated as one entity  for the determination of origin.   
116. Asked how the provisions of Article 2 (h) a nd paragraph 3 (d) of Annex II of the WTO 
Agreement on Rules of Origin were implemented in  Montenegro's legislation, the representative of 
Montenegro pointed to Article 12 of the Customs Law and Articles 8 and 10 of the Decree on Implementation of the Custom Law.  The customs authority issued binding information on the classification and origin of goods within 60 days of receipt of a request (the deadline for classification determinations was three months).  The assessments remained valid for two years provided the facts 
and conditions, including the rules of origin, under which they had been made remained comparable.  
She subsequently noted that the implementing De cree had been amended to extend the period of 
validity of assessments to three years (RM OG No. 81/06).   
117. The representative of Montenegro confirmed th at, from the date of accession, Montenegro's 
preferential and non-preferential rules of origin, a nd the implementation thereof, would comply with 
the WTO Agreement on Rules of Origin.  She further confirmed that, to this end, Montenegro would 
implement Article 2 (h) and Annex II, paragraph 3(d) of the WTO Agreement on Rules of Origin in 
its domestic legislation and that, accordingly, with respect to non-preferential and preferential rules of 
origin, the relevant Montenegrin authorities would pr ovide, upon request of an exporter, importer or 
any person with a justifiable cause, an assessment of  the origin of the import under the terms outlined 
in those provisions.  The Working Party took note of these commitments. 
- Other customs formalities 
118. The representative of Montenegro said that the processing of imports by Customs required the 
submission of a customs declaration; the invoi ce; the Bill of Lading; certificates of fact, 
force majeure, or end user; and - as necessary - certificates of origin, certificates of conformity; veterinary, phytosanitary, health or quality certifi cates; approvals; or licenses.  In response to a 
specific question, she confirmed that Montenegro  did not require the authentication of import 
documentation by its consular offices or by othe r institutions in the country of export.   WT/ACC/SPEC/CGR/4/Rev.2 
Page 42  
 
 - Preshipment inspection 
119. The representative of Montenegro said that G overnment-mandated preshipment inspection of 
the nature foreseen in the Agre ement on Preshipment Inspection was not applied in Montenegro.   
120. The representative of Montenegro confirmed th at if pre-shipment inspection requirements 
were to be introduced in the future, such require ments would be temporary, and would comply with 
the requirements of the WTO Agreement on Pre-sh ipment Inspection and other WTO agreements.  
Montenegro would ensure that pre-shipment insp ection enterprises operating on its behalf complied 
with the provisions of the WTO Agreement, including the Agreements on Import Licensing Procedures, Customs Valuation, Technical Barrier s to Trade, the Application of Sanitary and 
Phytosanitary Measures, Agriculture, and Rules of Origin and the GATT 1994.  She further confirmed 
that Montenegro would ensure that charges and fees of pre-shipment enterprises would be consistent 
with Article VIII of the GATT 1994 and Monteneg ro would ensure that the requirements and 
procedures of such entities would comply with the transparency and confidentiality requirements of 
the WTO Agreement, including Article X of the GATT 1994.  Decisions by such firms could be appealed by importers in the same way and throu gh the same procedures as administrative decisions 
taken by Montenegro.  The Working Party took note of these commitments. 
- Anti-dumping, countervailing duties, safeguard regimes 
121. The representative of Montenegro said that anti-dumping and countervailing measures could 
be imposed on imports pursuant to the Forei gn Trade Law (Article 36) and the Decree for 
Implementation of the Foreign Trade Law.  The Ministry for Economic Development would conduct 
investigations based on written requests filed by or on behalf of the domestic  industry (i.e. producers 
collectively accounting for more than 25 per cent of the national output of a like product).  A notification announcing the initiation of proceedings  would be published in the Official Gazette.  
The investigation should be conclude d within one year of the initiation.  If the Ministry confirmed the 
existence of dumping or subsidization, and th e resulting injury to the domestic industry, a 
recommendation would be made to the Govern ment, which decided on the imposition of anti-
dumping or countervailing duty.  Decisions to le vy anti-dumping or countervailing duty - whether 
provisionally or definitely - woul d be published in the Official Gazette.  Provisional anti-dumping 
duty could be levied for maximum six months; fo r provisional countervailing duties the period could 
not exceed four months.  Subject to review by the Ministry, anti-dumping or countervailing duties 
remained in force as long as necessar y to remedy the injury, but not for more than four years.  She 
considered the anti-dumping and countervailing prov isions of the Foreign Trade Law and the Decree 
for Implementation of the Foreign Trade Law to  be fully compliant with the Agreement on  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 43 
 
 
 Implementation of Article VI of the GATT 1994 a nd the Agreement on Subsidies and Countervailing 
Measures.   
122. The representative of Montenegro said that he r Government could impose safeguard measures 
on imports based on the recommendation of the Ministry  for Economic Development.  The Ministry's 
recommendation would be the result of an inves tigation carried out as required under the Foreign 
Trade Law (Articles 44 to 50) and the Decree for Implementation of the Foreign Trade Law 
(Articles 38 to 42).  The Ministry's decision to initi ate an investigation was published in the Official 
Gazette.  A safeguard measure could be in the fo rm of a quantitative restriction or a price-based 
measure.  Her Government could introduce a provisi onal safeguard measure - in the form of a tariff 
increase - for a period not exceeding 200 days if evid ence showed clearly that the increased imports 
were causing or threatening to cause serious injury to the domestic industry, and a delay would cause 
injury difficult to repair.  Safeguard measures re mained in force as long as necessary to remedy an 
injury, but not for more than four years (or a tota l of eight years in exceptional circumstances).  She 
considered the provisions on safeguard measures in the Foreign Trade Law and the Decree for Implementation of the Foreign Trade Law to be full y compliant with the Agreement on Safeguards.   
123. The representative of Montenegro considered Montenegro's trade remedy legislation WTO 
compliant, but confirmed that Montenegro would not apply any anti-dumping, countervailing or safeguard measure until it had notified and implemen ted appropriate laws in conformity with the 
provisions of the WTO Agreements on the Impl ementation of Article VI of the GATT 1994, 
Subsidies and Countervailing Measures, and Safeguards.   
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
124. The representative of Montenegro said that indi viduals and enterprises wi shing to engage in 
exporting were obliged to register pursuant to the Foreign Trade Law (RM OG No. 28/04).  The 
registration requirements for exporte rs were identical to the requirements for importers (see "Trading 
rights").  Exporters of goods subject to activity  licensing were subject to additional registration 
requirements pursuant to the Law on Production a nd Circulation of Narcotics (FRY OG No. 46/96 
and 37/02), the Law on Chemicals (RM OG Nos. 11/ 07), the Law on Medicines (RM OG Nos. 80/04 
and 18/08) and the Law on Tob acco (OG MNE No. 48/08).   WT/ACC/SPEC/CGR/4/Rev.2 
Page 44  
 
 125. The representative of Montenegro said that no e xport duties were being applied at present.  
Montenegro had applied an export duty of 15 per cent on ferrous metals and scrap steel, and 
20 per cent on raw hides.  The export duty on ferrous  metals had been abolished in 2005 according to 
the Decision on Abolishment of Export Duties for Ferrous Metals (RM OG No. 25/05), and the export 
duties on scrap steel and raw hides had been eliminat ed with the entry into force of the new Law on 
Customs Tariff in January 2006.   
126. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would not apply or reintroduce any export duty.  The Working Party took note of this commitment. 
- Export restrictions 
127. The representative of Montenegro said that M ontenegro did not prohibit the export of any 
goods.  Article 15 of the Foreign Trade Law a llowed her Government to introduce quantitative 
restrictions on exports in case of critical shortag es of essential products, to relieve the consequences 
of such shortages, or in order to protect an exha ustible natural resource - applied simultaneously with 
restrictions on domestic production or consumption.  The Ministry for Economic Development would 
be in charge of quota allocations.  She stressed that  the Foreign Trade Law stipulated that quantitative 
export restrictions could be applied only in stri ct WTO-compatible circumstances, that no quantitative 
export restrictions were being a pplied at present, and that no such restrictions were being 
contemplated.  Moreover, Montenegro did not resort to any other export measures such as minimum export prices, voluntary export restrictions , or orderly marketing arrangements.   
128. Export licensing could be applied pursuant to Article 6 of the Foreign Trade Law.  The 
Decision on Control List for Export, Import and Transit of Goods (RM OG No. 45/07) established a regime for export licensing comparable to that a pplicable to imports.  However, whereas no licenses 
were required for imports, the Ministry of Culture licensed exports of artefacts of artistic, cultural, 
historical and archaeological value, notably for (i ) paintings, drawings and pastels; (ii) original 
engravings, prints and lithographs; (iii) original sculp tures and statues; (iv) postage or revenue stamps, 
stamp-postmarks, first day covers, postal stationery (stamped paper);  (v) collections and collectors' 
items of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest; and (vi) antiques of an age exceeding 100 years.  In order to get 
a licence, the applicant should submit a confirmati on from the Republic Institution for Protection of 
Cultural Monument; if applicable, an export conf ormity statement from the copyright holder; 
a photograph of the artwork being exported; and the receipt for payment of the €10 administrative fee.  She provided a list of goods subject to export licenses in Table 8.  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 45 
 
 
 Table 8:  Goods Subject to Export Licenses  
Responsible Authority Goods Subject to Export Licenses 
The Ministry for 
Economic 
Development - Derivatives containing only nitro or only nitro's groups (1 tariff item in 
Chapter 29); and 
- Arms and ammunition tariff items in Ch apter (6 tariff items in Chapter 93). 
The Ministry of 
Tourism and Environmental 
Protection - Uranium and thorium ores and concentrates (4 tariff items in Chapter 26); 
- Natural uranium (25 tariff items in Chapter 28); - Nuclear reactors (4 tariff items in Chapter 84); 
- Apparatus based on the use of X-rays or of alpha, beta or gamma radiations 
(3 tariff items in Chapter 90); 
- Wastes; 
- Endangered  and protected speci es of wild flora and fauna; 
- Substances damaging the ozone layer; and - Protected rare, rarefied, endemic a nd endemic and endangered plant and 
animal species. 
The Ministry of 
Health, Labor and 
Social Welfare - Arsenic (1 tariff item in Chapter 28); 
- Narcotics - including derivates and salts (48 tariff items in Chapter 12, 13 
and 29); and 
- Precursors (22 tariff items in Chapter 28 and 29). 
The Ministry of Culture, Sport and 
Media - Works of art, collectors pieces and antiques (7 tariff items in Chapter 97). 
 
- Export subsidies 
129. The representative of Montenegro said that M ontenegro did not provide any subsidies or 
Government benefits to promote exports.  In r esponse to a specific questi on, she confirmed that 
Montenegro did not maintain prohibited subs idies within the meaning of Article 3 of 
the Agreement on Subsidies and Countervailing Measu res, including benefits contingent upon export 
performance or local content, and that it would not in troduce such prohibited subs idies in the future.   
130. Asked to the explain the conformity of Montenegro's duty drawback scheme with 
Annexes I item (i), II and III of the Agreemen t on Subsidies and Countervailing Measures, the 
representative of Montenegro said that Articles 128 to 132 of the Customs Law allowed duty drawback on imported goods not released for free ci rculation and subsequen tly exported.  The duty 
drawback was equal to the amount of the original  charges on the imported goods.  In her view, the 
duty drawback scheme conformed to the Agreement on Subsidies and Countervailing Measures, 
including its Annexes.  Drawback of customs duty could be requested no later than three years from 
the date when the customs debt had been incurred.   She confirmed that the amount remitted under the 
drawback scheme could under no circumstances ex ceed the duties paid on the imported products. WT/ACC/SPEC/CGR/4/Rev.2 
Page 46  
 
 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 131. The representative of Montenegro submitted a draf t notification pursuant to Article XVI:1 of 
the GATT 1994 and Article 25 of the Agreement on S ubsidies and Countervailing Measures, covering 
the years 2004 and 2005, in document WT/ACC/CGR/15; for 2006 in document WT/ACC/CGR/15/Add.1; and for 2007 in documen t WT/ACC/CGR/15/Add.2.  Support was made 
available through the Law on Budget.  During th e 2004-2006 period, the Ministry of Economic 
Development had administered a loan programme - Programme for Restructuring of Companies - to 
prepare industrial enterprises undergoing privatizat ion for restructuring and modernization.  The 
duration of the loans was three years with a grace pe riod of one year, and the annual rate of interest 
was two per cent.  Eligibility criteria included the company's export potential, its ability for 
restructuring, its human resources potential and whether the company was eligible for privatization 
within 12 months.  The credit was aimed at stre ngthening the working capital of the enterprises, 
covering the costs related to worker redundancies a nd reconstruction of facilities, defining the optimal 
organizational structure and number of employees, improving the companies' business 
competitiveness, and assisting the comp anies in their restructuring to enable them to operate in an 
open market economy.  As the programme was linke d to the privatization of these enterprises, the 
scheme would be terminated once the privatizations had been completed.  The estimated value of the 
subsidy had amounted to €2.65 million in 2004, €1. 76 million in 2005, and €1.26 million in 2006.   
132. In addition, the Ministry of Finance had provided subsidized credit worth €2.34 million 
in 2004, and €3.07 million in 2006, to the enterp rise "Obod" - a manufacturer of electric machinery 
and equipment in which the State owned 51.8 pe r cent of the capital.  A public tender for the 
privatization of this enterprise was being prep ared.  Support provided aimed at preserving the 
company's assets and at preparing it for priva tization, and included subsidized credit for the 
modernization of machinery and the restorati on of two manufacturing facilities, including the 
payment of workers involved in these activities.  The loans were granted at an annual rate of 
two per cent and had to be repaid af ter privatization.  Obod was the so le recipient of these loans.  In 
her view, these loans did not affect competition as Obod had not been operational in recent years.  
133. She added that the steel producer "Zeljezara" had received grants totalling €0.64 million from 
the Ministry of Economy in 2005.  The grants had compensated the steel producer for the difference between the market price and the contract price fo r electricity supplied by "Elektroprivreda".  The 
Agreement between her Government and the form er majority owner of "Zeljezara" had been 
terminated at the end of 2005, and no subsidy had been paid in 2006.    WT/ACC/SPEC/CGR/4/Rev.2 
 Page 47 
 
 
 134. Finally, grants worth €0.55 million had been provided to companies of various sectors 
in 2006 to promote competitiveness.  The programme aimed at improving business practices and 
transfers of managerial know-how to enable the co mpanies concerned to operate more effectively in 
an open market economy.  Support was provided to enterprises with a positive business outlook and a positive approach towards improvement of manageme nt and business practices.  She noted that the 
amounts granted were relatively small and could not affect the performance of the company 
substantially.  
135. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would not grant or maintain, at any level of G overnment, export or import-substitution subsidies, 
within the meaning of Article 3.1(a) and 3.1(b) of  the SCM Agreement.  She further confirmed that, 
by the date of accession, Montenegro would prov ide a subsidy notification, in accordance with 
Article 25 of the SCM Agreement, to the Committe e on Subsidies and Countervailing Measures.  The 
Working Party took note of these commitments. 
- Technical barriers to trade, standards and certification 
136. The representative of Montenegro recalled that  the former Socialist Federal Republic of 
Yugoslavia hade been a signatory to the TBT C ode under the GATT 1947 and a number of principles 
of that Agreement.  The subsequent WTO Agre ement on Technical Barriers to Trade had been 
incorporated in the legislation of the State Union of Serbia and Montenegro, and under the 
Constitutional Charter of the State Union, legisla tion passed at the Union level had been directly 
applicable in Montenegro.  Thus, standards, technical regulations and conformity assessment 
procedures had been adopted at the Union level pr ior to Montenegro's independence, the key legal 
documents being the Law on Standardization and its two relevant decrees, the Decree on the 
Procedure for the Elaboration and Enactment of T echnical Regulations and for Keeping the Registry 
of these Regulations, and the FRY Decree on the Procedure for the Elaboration, Adoption, and 
Enactment of Yugoslav Standards.  The Ministry of Economy had been the ministry responsible for 
the coordination of activities related to standards and technical regulations in Montenegro, whereas 
the Standards Institution of Serbia and Montenegro - a full member of ISO and IEC - reporting to the 
Union Ministry of Internal Economic Relations, ha d been in charge of implementing the Law on 
Standardization and adopting standards in Serbia and Montenegro.  The State Union of Serbia and 
Montenegro had been a signatory to a number of international agreements on mutual recognition of 
certification and test results for specific produc ts, and the Accreditation Body of Serbia and 
Montenegro had recognized certificates and test re ports on the basis of bilateral and multilateral 
agreements.   WT/ACC/SPEC/CGR/4/Rev.2 
Page 48  
 
 137. Following the independence of Montenegro on 3 June 2006, Montenegro had become fully 
responsible for all areas, including TBT, formerly  within the responsibilities of the State Union.  
Montenegro's Parliament had adopted a Resolution of  Parliament on 3 June 2006 whereby all former 
State Union laws would continue to be effective a nd enforced in Montenegro as national laws.  In the 
TBT area, the Resolution covered four key laws adop ted at the State Union level in 2005, namely the 
Law on Standardization (SM OG No. 44/05), the Law on Accreditation (SM OG No. 44/05), the Law 
on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements (SM OG No. 44/05), and the Law on Metrology (SM OG No. 44/05).  In addition, four regulations had been adopted in 2006, i.e. the Decree on Legal Measurement Units (SM OG 
No. 10/06), the Decree on Manner of Authorizin g Conformity Assessment Bodies, Register of 
Authorized Conformity Assessment Bodies, Records on Certificates of Conformity, Conformity 
Marks and Conformity Assessment Bodies, and the C onditions for Applying Technical Regulations of 
Other Countries (SM OG No. 22/06), the Decree on Manner and Procedures of Conformity Assessment (SM OG No. 22/06), and the Decree on Manner of Preparing and Adopting Technical Regulations and Register of Such Regulations  (SM OG No. 17/06).  The Ministry for Economic 
Development of the Republic of Montenegro was pr esently in charge of implementing these laws and 
regulations.  The Ministry had established a workin g group to prepare all necessary by-laws for the 
four laws and to establish all necessary in stitutions in charge of TBT matters.   
138. The representative of Montenegro presented a checklist of illustrative TBT issues in 
document WT/ACC/CGR/20, a TBT Action Plan in document WT/ACC/CGR/21, and a draft 
statement under Article 15.2 of the TBT Agreement in document WT/ACC/CGR/29.  According to the checklist and the action plan, a Department for Quality Infrastructure had been established within 
the Ministry.  The Ministry had also established a Bureau for Measures and Precious Metals, and the 
Institute for Standardization of Montenegro  had been set up by Government Decision on 
29 March 2007.  A Decision on the Establishment of the Accreditation Body had been adopted on 
29 March 2007, and the Acting Director of the Body had been appointed on 10 May 2007.  The 
Accreditation Body was an independent Body opera ting in accordance with the provisions of the TBT 
Agreement and ISO 17011.  Montenegro's Accreditati on Body was now fully operational.  A Register 
of Technical Regulations would be maintained with in the Ministry for Economic Development, while 
the Institute for Standardization would ma intain a Register of Standards.   
139. Some Members noted that Montenegro required certificates of conformity for a substantial 
number of imported items pursuant to the Decision on Control List for Export and Import of Goods 
(RM OG No. 44/04), and that the Decision also listed 53 categories of goods subject to import quality 
control (see documents WT/ACC/CGR/3/Add.1, Annex 5 and WT/ACC/CGR/7, Annex 4).  As  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 49 
 
 
 Montenegro had decided to abolish the Law on Qual ity Control of Agricultural and Food Products in 
Foreign Trade (FRY OG Nos. 12/95, 28/96 and 59/ 98) and its by-laws, these Members asked what 
quality controls would remain, on what legal basis, and which steps Montenegro would take to review 
these controls to ensure they were appropria te and complied with the TBT Agreement.   
140. The representative of Montenegro replied th at the Law on Quality Control had been 
abolished, and so had quality cont rols applied at the border.  Montenegro currently applied quality 
control at the retail level without any discrimin ation between domestic a nd imported goods.  Market 
inspectors checked the goods displayed on the shel ves and, if in doubt, a sample would be taken and 
submitted for analysis.  A product not fulfilling the prescribed conditions would be removed from 
circulation.  The controls were based on some  40 rule books for food items based on specific 
legislation such as the Veterinary Law and the Plan t Health Protection Law.  The Laws referred to 
international standards and to par ticular international organizations such as the OIE, the IPPC, and the 
Codex Alimentarius, although Montenegro was not yet member of Codex Alimentarius.  Quality 
controls on industrial goods were based on various regulations, enum erated in a list of Technical 
Regulations on Quality of Food and Industrial Pro ducts Applied in the Republic of Montenegro 
submitted in February 2007 (see notice in documen t WT/ACC/CGR/22).  No fees were charged for 
quality control at the retail level.  Montenegro w ould review all regulations  governing quality control 
to ensure compliance with the Agreement on Techni cal Barriers to Trade.  A Revised Strategy of 
Quality Infrastructure Development in Montenegro  had been adopted on 7 June 2007.  The Revised 
Strategy included an obligation to harmonize f ood and environmental safety standards, including 
standards of safety at work, with international sta ndards.  Pursuant to Article 28.1 of the Law on 
Technical Requirements for Products and Confor mity Assessment of Products with Prescribed 
Requirements (OG MNE No. 14/08), all standards and technical regulations in force at the time of 
entry into force of the Law would be made complia nt with international standards by 6 March 2010.  
The review of existing standards and technical re gulations had begun in December 2007.  She did not 
expect this process to be over by the time of Montenegro's accession.  She noted, however, that 
mandatory standards which would not have been conve rted into technical regulations at the time of 
Montenegro's accession to the WTO would be become voluntary. 
141. Asked how Montenegro's regulations could be consistent with Article 2 of the 
TBT Agreement, notably how Montenegro would asse ss the risks leading it to conclude that a 
technical regulation would be required to fulf il a legitimate objective, the representative of 
Montenegro said that the new Law on Technical Requirements for Products and Conformity Assessment of Products with Such Requirements (OG MNE No. 14/08) had been adopted to ensure 
full conformity with the provisions of the TBT Agre ement.  She noted that the Law did not stipulate WT/ACC/SPEC/CGR/4/Rev.2 
Page 50  
 
 the basis for assessing risks.  The latter was regul ated by the Law on General Product Safety, which 
had been adopted by the Parliament on 11 August (OG MNE No. 48/08).  The Law provided the basis 
for assessing risks not prescribed in any other legislation. 
142. Concerning standardization and the extent to wh ich Montenegro's standards were based on or 
harmonized with international norms, the representa tive of Montenegro said that the Institute for 
Standardization of Montenegro (ISME) had become a member of the International Organization for 
Standardization (ISO) on 1 July 2007 and participated  in the standardization work of 17 ISO technical 
committees and two policy committees (COPOLCO and DEVCO).  ISME had also applied for 
membership in the International Electrotechnical Commission (IEC).  ISME had been an affiliate 
member of European Committee for Standardization (CEN) since 1 July 2008.  The former Institute 
for Standardization of Serbia and Montenegro, a joint institution until Montenegro's independence in 
May 2006, had held a total of 13,7 46 Serbian-Montenegrin standards in  its data base.  According to 
Law on standardization (Article 20) those standard s could be used as voluntary standards before the 
adoption of relevant Montenegrin standards, provide d they were relevant for Montenegro.  For the 
time being and in accordance with its plan and pr ogramme of work for 2008, ISME had adopted 
around 800 Montenegrin standards which were ha rmonized with international and European 
standards.  These standards related to safety of machinery, toys, low voltage equipment, 
electromagnetic compatibility, personal protec tive equipment, medical devices, foodstuff, 
environment, quality, etc.  For the year 2009, ISME planned to adopt around 1,500 Montenegrin 
standards.  ISME intended to adopt the remaini ng 20,000 European standards by the end of the 
process of harmonization with the EU.  During this  period, international standards relevant for 
Montenegro would also be adopted as Montenegri n standards.  Montenegrin standards and related 
documents were adopted and issued in accordance w ith that Law and the rules of the Institute for 
Standardization, which was in compliance with the rules of European and international organizations 
for standardization, particularly with the Code of Good Practice for the Preparation, Adoption and 
Application of Standards of the WTO Agreement on Technical Barriers to Trade.  She noted that the Revised Strategy of Quality Infrastructure Devel opment in Montenegro, which had been adopted on 
29 March 2007, included an obligation to withdraw all standards not harmonized with international 
standards.  Among the international standardizat ion organizations relevant to Montenegro she 
considered the International Organization for St andardization (ISO), the International Electro 
Technical Commission (IEC), and the Internati onal Telecommunication Union (ITU), and amongst 
the relevant European institutions she referred to  the European Committee for Standardization (CEN), 
the European Committee for Electro technical Standardization (CENELEC), and the European 
Telecommunication Standards Institute (ETSI).  Sh e reiterated that in accordance with the new Law 
on Technical Requirements for Products and Conf ormity Assessment of Products with Such  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 51 
 
 
 Requirements, all mandatory standards which w ould not have been converted into technical 
regulations at the time of Montenegro's accession to the WTO would become voluntary.  Responding 
to a concern that Montenegro could appear to be  giving priority to regional over international 
standards, she said that Montenegro would give pr iority to the TBT Agreement, although regional 
agreements such as CEFTA and the SAA, both of which referred to the TBT Agreement in their 
preambles and provisions, were also carefully applied.   
143. With regard to transparency, the representative of Monteneg ro said that Montenegro had 
adopted the Decree on the Manner of Preparing and Adopting Technical Regulations and Register of 
such Regulations (OG MNE No. 55/08) and the Decr ee on Notification Procedure in the Field of 
Technical Regulations, Standards and Conformity  Assessment Procedures (OG MNE No. 55/08).  
Further regulations in preparation included draft decrees on the manner and procedures for conformity 
assessment and conformity assessment authorities, and on the application of technical regulations of 
other countries and record on conformity verifications  issued abroad.  According to Article 5 of the 
Decree on the Manner of Preparing and Adopting T echnical Regulations and Register of such 
Regulations, draft technical regula tions would be prepared by working groups established by the 
relevant ministries.  The Ministry would submit the drafts to all interested authorities, organizations 
and other legal and natura l persons for comment.  The title and summary of a particular draft technical 
regulation, as well as information on how to obtain th e draft, would be available on the Ministry's 
website, as well as on the website of the Chamber of Commerce.  The Decree on Notification of 
Technical Regulations, Standards and Conform ity Assessment Procedures (OG MNE No. 55/08)  
appointed the Enquiry Point for technical regulations  in the Department for Quality Infrastructure, 
whereas the Enquiry Point for standards was located in the Institute for Standardization.  She added 
that all technical regulations had to be published in  the Official Gazette of Montenegro at least six 
months before their entry into force pursuant to Article 6(3) of the new Law on Technical 
Requirements for Products and Conf ormity Assessment of Products w ith Prescribed Requirements.  
As for the publication of requirements concerning c onformity assessment procedures, she noted that 
the provisions of Article 5.9 of the TBT Agreement had been included in Article 15.2 of the Law on 
Technical Requirements. 
144. Some Members expressed concerns about the sy stem for introducing and enforcing technical 
regulations in Montenegro.  Article 8 of the D ecree on the Manner of Preparing and Adoption of 
Technical Regulations and Register of Such Regulations appeared to  go beyond the emergency 
exemptions allowed under TBT Article 2.10, and th e Article made no mention of non-discriminatory 
consideration of written comments.  Article 10 of the Decree did not ensure prompt publication of 
TBT regulations, nor did it require the regulator to  provide a "reasonable" interval between final WT/ACC/SPEC/CGR/4/Rev.2 
Page 52  
 
 publication and entry into force, i.e not less than six months.  A Member reminded Montenegro that 
Article 2.4 of the TBT Agreement required WTO Me mbers to use international standards, if they 
existed, as the basis for technical regulations.  This Member also noted that Article 5.2 of the Decision 
on Establishing the Accreditation Body  of Montenegro provided for accr editation rules to be based on 
Serbian, European and international standards.  This Member recalled that  the TBT Agreement gave 
priority to international standards over regional and national standards and invited Montenegro to 
revise its legislation to ensure that accreditation ru les would be based first and foremost on relevant 
international standards developed in  an open, transparent and impartial way.  Moreover, Montenegro's 
laws and decrees did not appear to allow it to comp ly with Articles 6 and 7.1 of the TBT Agreement 
as Montenegro seemed to accept th e results of conformity assessment procedures conducted by bodies 
in an exporting Member country only if the confor mity assessment certificates and marks were issued 
"in accordance with international Agreements  binding on Montenegro" or pursuant to "an 
Agreement on mutual recognition".  The Member was also concerned about Montenegro's system for 
Development and Application of Standards and Co nformity Assessment Procedures, in particular 
(i) a lack of priority given to international standa rds thereby creating an inconsistency with assurances 
of "preventing or eliminating unnecessary" obstacles or technical barriers to trade, and (ii) the lack of 
a cost-based fee structure in acco rdance with the WTO TBT Agreemen t.  Montenegro would need to 
change its laws and/or administrative underpinnings to allow it to accede to the obligations contained 
in the WTO TBT Agreement.   
145. The representative of Montenegro replied that Montenegro was aware of all inconsistencies 
and had amended its TBT legislation based on comme nts expressed in the Working Party.  A new 
Law on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements had been adopted (OG MNE No. 14/08) .  The Law was conform to Article 2 of the 
TBT Agreement inter alia  by clarifying the reference to inte rnational standards being the basis for 
technical regulations, standards and conformity assessment procedures, and by stipulating that a 
notice should be published and a technical regulation notified at an "appropriate stage".  In addition, 
the new Law on Standardization (OG MNE No. 13/08)  provided that all standards related to 
Montenegro's development priorities would be b ased on international standards.  Only where no 
adequate international standards existed would European standards be adopted.  She confirmed that 
Montenegro would take into account the key pr inciples referred to in the Decision of the 
TBT Committee G/TBT/1/Rev.8 when defining intern ational standards.  These principles had been 
included in the new Law.  The new Law on Standa rdization also provided for a non-discriminatory 
and cost based fee structure, clarified the right of appeal, provided for a 60-day comment period, and 
clearly separated the different conformity assessment procedures (Self Declaration and Third Party 
Certification).  Concerning conformity assessment, sh e noted that pursuant to Article 24.1 of the new  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 53 
 
 
 Law on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements, certificates of conformity and conform ity marks issued abroad would be accepted if it 
was proven that the conformity procedures applied pr ovided for a level of conformity equivalent to 
Montenegro's technical regulations.  ILAC attest ations would, therefore, be recognized in 
Montenegro.  She confirmed that the new legisl ation on conformity assessment incorporated the 
provisions of Articles 6.1 and 6.4 of the TBT Agre ement.  Several decrees had been adopted to 
regulate the issue in detail, including the Decree on notification procedure in the field of technical 
regulations, standards and conformity assessment pr ocedures (OG MNE No. 55/08) and the Decree on 
manner of drafting and adoption of technical regulations, technical specifications and the register of 
technical regulations (OG MNE No. 55/08).  Tw o other decrees on manner and procedures for 
conformity assessment and conformity assessment au thorities, and on the application of technical 
regulations of other countries a nd record on conformity verifications issued abroad were being 
drafted.  These drafts were expected to be adopted  by the end of October 2008.  She confirmed that 
recognition of conformity assessment certificates a nd marks of conformity would not be dependent on 
valid mutual recognition Agreements from the date of accession.  In response to a further question, 
she confirmed that conformity of a product with relevant technical regula tions could be proved by 
other means than by using standards in accord ance with Article 9.2 of the Law on Technical 
Requirements.  
146. [The representative of Montenegro confirmed that, from the date of accession, Montenegro's 
rules of accreditation would be based on relevant in ternational standards de veloped using an open, 
transparent and impartial approach.  The Work ing Party took note of this commitment.]  
- Sanitary and phytosanitary measures 
147. The representative of Montenegro said that  the Veterinary Law (RM OG Nos. 11/04 
and 27/07), the Law on Plant Health Protection (RM OG No.  28/06), the Law on Seed Material 
(RM OG No. 28/06), the Law on Planting Material (R M OG No. 28/06), the Law on Health Safety of 
Food Items and Articles for Common Use (SFRY OG No. 53/91; FRY OG Nos. 24/94, 28/96 and 37/02; SM OG Nos. 79/05 and 101/05), together with pertinent regulations, constituted the basic 
legal framework for Montenegro's sanitary and phytosanitary measures.
  A new Law on Food Safety 
had been adopted on 29 November 2007 (OG MNE No. 14/07).   
148. The main Government agencies involved in the administration of Montenegro's SPS measures 
were the Ministry of Agriculture, Forestry and Water Management; and the Ministry of Health.  
Concerning the participation of Montenegro in the relevant international or ganizations, she said that 
Montenegro had become a member of the Worl d Organization for Animal Health (OIE) on WT/ACC/SPEC/CGR/4/Rev.2 
Page 54  
 
 10 July 2007.  Montenegro was sending representati ves to meetings organized by Codex and the 
International Plant Protection Convention (IPPC ) but was not yet a member of the Codex 
Alimentarius Commission or the IPPC.  Howe ver, Montenegro had joined the FAO on 
17 November 2007, which was a precondition fo r membership in the Codex Alimentarius 
Commission and the IPPC.  She expected Montenegro to become a member of the Codex Alimentarius Commission and the IPPC in the near fu ture.  The Ministry of Agriculture, Forestry and 
Water Management had established a focal point for the IPPC, and participated in its meetings, but 
still without voting rights.  The Institute for Sta ndardization had been designated as Montenegro's 
enquiry point for Codex Alimentari us.  The Institute was in charge of all activities related to the 
Codex Alimentarius.  She noted that the Former Republic of Yugoslavia had been a member of the 
FAO; Codex Alimentarius standards were therefore an integral part of Montenegro's current legal 
system.   
149. The representative of Montenegro presented a Check-list of Illustrative Sanitary and 
Phytosanitary (SPS) Issues in document WT/A CC/CGR/19 and an SPS Action Plan in document 
WT/ACC/CGR/26.  According to the checklist, the principle of necessity in the Agreement on the 
Application of Sanitary and Phytosanitary Measur es (SPS Agreement) had been incorporated in the 
Veterinary Law (Article 2, item 51f; Article 34a, pa ragraph 1, item 1) and in the Law on Plant Health 
Protection (Article 10, paragraph 2) .  This principle had also been included in the new Law on Food 
Safety (Article 54, paragraph 2).  Montenegro's SPS  legislation stipulated that regulations governing 
animal and plant health and food safety should be based on scientific evidence according to the 
Veterinary Law (Articles 34a (paragraph 1), 34b (p aragraphs 1, 4 and 5)), and the Law on Plant 
Health Protection (Article 10, pa ragraph 3).  Adherence to intern ational standards, guidelines and 
recommendations - to the extent possible - was prescribed in the Veterinary Law (Articles 6 
(paragraph 2), 34a (paragraph 1, item 1), and 34b (p aragraphs 2 and 4)) and the Law on Plant Health 
Protection (Article 10, paragraph 3).  Provisions  had also been included in the new Law on Food 
Safety (Article 9, Article 54, pa ragraph 1, Article 55, paragraph 2 and 3).  Article 2, item 51n of the 
Veterinary Law listed the OIE, the Food and Agri culture Organization of the United Nations (FAO), 
the World Health Organization (WHO), and the WTO as  international organiza tions relevant in the 
area of animal and human health protection.   
150. The principle of equivalence had been in corporated in the new Law on Food Safety 
(Article 59), the Veterinary Law (Articles 33 and 34f, paragraphs 1 and 2), and the Law on Plant 
Health Protection (Article 10, paragraph 6).  Pro cedures governing risk, risk analysis, risk assessment, 
risk management and an appropria te level of protection had been established pursuant to Article 2 
(items 51b to f) of the Veterinary Law, Article 10 of  the Law on Plant Health Protection, and Article 6  WT/ACC/SPEC/CGR/4/Rev.2 
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 (items 6, 7, 8, 9 and 10) and Articles 15, 16, 17 of Law on Food Safety.  Pr ovisions regarding disease 
free and low disease prevalence areas had been included  in the Veterinary Law (Article 2, items 51g 
and h), and Article 34b, para graph 3 of the Law stipulated that ve terinary-sanitary measures should be 
adapted to the veterinary-sanitary characteristics of the region from which animals, products, food and 
raw materials of animal origin originated or we re destined.  The observance of regional conditions 
was also laid down in various provisions of the Law on Plant Health Protection (Articles 10 
(paragraph 4), 14 and 15).  Non-discr imination provisions had been in corporated in the Veterinary 
Law (Article 34a and g), the Law on Plant Health Pr otection (Article 5), and in the new Law on Food 
Safety (Article 54, paragraph 1, item 2).  Border inspection posts and the domestic market inspections 
respected the principle of non-discrimination by appl ying the laws equally to all operators irrespective 
of nationality.   
151. Noting that pursuant to Article 33 of the Veterinary Law imports of animal origin were 
allowed only from facilities complying with the prescrib ed requirements or registered in the European 
Union, but that "other facilities" could become elig ible, a Member invited Montenegro to describe the 
process through which "other facilities" could gain  approval to export to Montenegro.  The 
representative of Montenegro replied that in the ev ent of import from such a facility, the Veterinary 
Administration would conduct risk assessment taki ng into account the veterinary-sanitary control 
system and the epizootic situation in the expo rting country, as well as the standards and 
recommendations from the OIE and othe r relevant organizations.  Contro ls of the export facility could 
be carried out to determine the existence of vete rinary-sanitary obstacles to importation.  If the 
regulations, standards, and the ve terinary-sanitary control system of the exporting country provided 
for a level of protection at least equivalent to that of Montenegro, the facility would be granted 
approval to export to Montenegro.  In her view , this provision complied with the concept of 
equivalence of the SPS Agreement. 
152. Article 34g of the Veterinary Law prescribed  the inspection procedures, and Article 60 
(paragraph 3) of the Law stipulated that the inspec tion fees should not be higher than the actual cost 
of the relevant procedure.  Compensation was also  addressed in Article 55 of the Law on Plant Health 
Protection.  Each inspection service had a ruleboo k based on the particular law it administered, 
describing in detail the procedures to be used, in cluding controls and sampling methods.  Inspection 
costs were prescribed in various decrees, including in the Decision on the Level of Compensation for 
Veterinary-Sanitary Control in the Trade Across  the Border of the Republic of Montenegro 
(RM OG No. 50/05).  Simple testing was performed at the border, for more elaborate tests samples were sent for laboratory analysis.  Montenegro had three laboratories located in Podgorica, each 
performing separate types of testing - the Institute for Public Health of Montenegro, the Centre for WT/ACC/SPEC/CGR/4/Rev.2 
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 Ecotoxicology Research of Montenegro, and the Specialized Veterinary Laboratory.  About 
10 per cent of all imported shipments of animal origin had been subject to laboratory control in 2005.   
153. Agricultural and forest plants and products c ould only be imported through designated border 
crossings.  Article 31 of the Veterinary Law prescri bed that all shipments containing products of 
animal origin should be accompanied by an inte rnational veterinary certificate issued by the 
veterinary service of the exporting country.  The cer tificate should contain information determined by 
the Minister of Agriculture in compliance with OIE guidelines, in general providing information on 
the origin of the goods, their identity, destinati on, the registration number of the transportation 
vehicle, and the health conditions of the shipment .  Certified seeds and seedling material were subject 
to phytosanitary examinations during the vegetation period by institutions authorized by the Ministry 
for Agriculture, Forestry and Water Management, and by laboratories testing to confirm that the seeds 
or planting materials were free of pests.  Author ized inspectors carried out  visual inspection, and 
samples could be taken to determine the presence of quarantine pests.  Imported plants or plant 
products containing quarantine pests would be returned or destroyed in agreement with the importer.   
154. Labelling and packaging of food products were regulated by the Rulebook of Declaration and 
Labelling of Packed Foodstuffs (S&M OG Nos. 4/03 and 12/03), the Rulebook on Conditions of 
Health of Dietary Foodstuffs Which Can Be Plac ed into Circulation (SFRY OG Nos. 4/85, 70/86, 
and 69/91), and the Food Safety  Law (RM OG No. 14/07).  Unde r the Food Safety Law, food 
products were required to be la belled.  Labels should correspond to the data specified in the 
producers' specification and requirements prescribed by the Food Safety Law.  In response to a 
question, she noted that there were no other mandatory requirements for labelling besides those 
prescribed by the Food Safety Law. 
155. Concerning the principle of transparency and th e establishment of a single Enquiry Point, she 
said that Montenegro had no single enquiry point at present, but a Regulation on Notification 
Procedures of SPS Measures had been adopted in January 2008 to comply with Article 7 and 
Annex B.3 of the SPS Agreement (OG MNE No. 13/ 2008).  Pursuant to the Regulation, the 
SPS Enquiry Point would be located in the Ministry  for Agriculture, Forestry and Water Management 
(Rimski trg br. 46, PC "Vektra" 81000 Podgorica, Montenegro; phone: (+381) 81 482-109; 
fax: (+381) 81 234-306; website:  www.minpolj.vlada.cg.yu).  The enquiry point would be 
responsible for providing information, inter alia , on Montenegro's membership and participation in 
international sanitary and phytosanitary organizatio ns, and on bilateral and multilateral agreements 
and arrangements, including the texts of such ag reements and arrangements (Article 4 of the 
Regulation).  The Ministry would also act as Montenegro's notification authority (Article 3 of the  WT/ACC/SPEC/CGR/4/Rev.2 
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 Regulation).  Pursuant to Article 14 of the Regulat ion, any significant change or amendment of an 
SPS regulation had to be notified in the same manner as a new SPS measure.  In response to a 
question, she added that the Veterinary Admini stration, which was under the responsibility of the 
Ministry of Agriculture, Forestry and Water Mana gement, acted as the notification authority to the 
OIE pursuant to Article 9 of the Rulebook on classi fication and notification of suspicious animal 
diseases, which had been adopted in January 2008 (OG MNE No. 05/08).  She further noted that, as a 
member of the FAO, Montenegro met the notifica tion requirements of the IPPC.  In response to a 
Member who had expressed concerns over the absence of clear language on transparency in the Law 
on Plant Health Protection, she noted that such language had been included in the Regulation on 
Notification Procedures of SPS measures adopted in January 2008 in implementation of Article 12, 
paragraph 6 of the Law on Plant Health Protection.   In her view, the Regulation complied with the 
transparency obligations of Annex B of the SPS Agreement. 
156. Pursuant to Article 7 of the Regulation on Notification Procedures of SPS Measures, the 
Ministry was obliged to publish a notice of the in tention to introduce an SPS measure on the official 
website of the Ministry (www.minpolj.vlada.cg.yu) at an early stage of development of the measure.  
The Regulation also required the Ministry to notify members of relevant international organizations of 
the products to be covered by the regulation toge ther with a brief indication of the objective and 
rationale of the proposed regulation.  Draft SPS meas ures had to be notified to interested parties and 
published for public comment on the official website of the Ministry of Agriculture, Forestry and 
Water Management (www.minpolj.vlada.cg.yu), or on  the websites of the administrative authorities 
enacting them at least 75 days before their a doption.  The Law on State Administration and the 
Regulation on Notification Procedures of SPS Measur es guaranteed the right of the private sector to 
comment on Montenegro's draft SPS measures.  Afte r adoption, regulations were published in the 
Official Gazette of Montenegro.  Asked whether Montenegro's legislation provided any guidance on 
the period of time between adoption and implemen tation of an SPS measure, the representative of 
Montenegro said that Montenegro's legisla tion was in compliance with the Decision on 
Implementation Related Issues and Concerns adopted  on 14 November 2001 at the Doha Ministerial 
Conference which referred to a period of not less than 6 months. 
157. A Member noted that the Protocol on the Harm onization of Operations and Procedures in the 
Foreign Trade of Goods Liable to Mandatory Vete rinary-Sanitary and Phytosanitary control at the 
border of State Union of Serbia and Montenegro app eared to have allowed goods subject to veterinary 
or phytosanitary inspection to pass SPS controls in Serbia if brought into Montenegro by an importer 
with a head office in Serbia, and vice versa.  As  Montenegro and Serbia had become independent 
countries, the Member requested information on how such preferential treatment  had been changed.  WT/ACC/SPEC/CGR/4/Rev.2 
Page 58  
 
 The representative of Montenegro replied that following the independence of Montenegro, all 
requirements for importation of products subject to veterinary or phytosanitary inspection from Serbia 
to Montenegro and vice versa had become subject to the regular rules applied on importation of such 
products from any country.   
158. The representative of Montenegro said that imports of genetically modified organisms and 
wild species of flora and fauna required a permit from the Ministry for Agriculture, Forestry and 
Water Management, or the Ministry of Tourism a nd Environment Protection.  The wild species of 
flora and fauna subject to import or export licensi ng had been identified by incorporating the Annexes 
of the CITES Convention into the Control List.  Li censing requirements for biotech products had been 
eliminated with the abolition of the Law on the Basic Principles of Environment Protection 
(FRY OG Nos. 24/98 and 24/99).  Genetically modi fied organisms were considered potentially 
dangerous to human, plant and animal health and ther efore subject to a special regime pursuant to the 
Law on Genetically Modified Organisms adopted  on 2 April 2008 (OG MNE No. 22/08) and its by-
laws.  The Law regulated the circulation and marki ng of agriculture and food products originating 
from GMOs.  The new Law also prescribed conditi ons for the use of GMOs in closed systems 
(laboratory, glass houses); the intentional introduction of GMOs in the environment; the placing on 
the market of GMOs or GMO products; the handling, transportation, packing, transit and marking of 
GMOs or GMO products; and the control and supervis ion of economic operators dealing with GMOs.  
The Law enabled transportation of approved GMO pr oducts and included measures to prevent adverse 
effects resulting from the use of GMOs.  The La w was meant to give consumers a choice.  She 
confirmed that the former procedures applied in the interim.  In response to a question about the role 
of National Council for Assessment of  Safety of Food, she noted that  the Council cooperated with the 
relevant bodies responsible for the regu lation of products of biotechnology. 
159. She added that Montenegro had amended ex isting legislation to comply with the 
SPS Agreement in the area of veterinary measures, and intended to amend a few additional provisions 
in the area of phytosanitary measures.  Work to reach and ensure full compliance with the 
SPS Agreement was ongoing, and included new re gulations on animal protection based on 
OIE recommendations and standards; new regula tions on plant protection in conformity with 
IPPC standards; examination a nd harmonization of national legisl ation with Codex Alimentarius 
standards; the elaboration of guidelines and reco mmendations relating to food additives, veterinary 
drugs and pesticide residues; the introduction of a Global Monitoring System on food contamination and Assessment Programme (GEMS/Food); the reorga nization of a national reference laboratory in 
compliance with ISO/IEC standards; and implementa tion of the National Food Safety Strategy.  These 
activities would allow Montenegro to accept the pr inciple of equivalence, to perform control,  WT/ACC/SPEC/CGR/4/Rev.2 
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 inspection and approval procedures consistent with WTO rules, and to take account of risk assessment 
techniques developed by the relevant  international organizations.   
- Trade-related investment measures 
160. The representative of Montenegro said that  Montenegro believed its Law on Foreign 
Investment to be fully compliant with the Agreem ent on Trade-Related Investment Measures.  Asked 
to list all investment opportunities contingent up on the use of local materials in the production 
process, import/export balancing, or linking access to foreign exchange for importation to the value of 
exports, she noted that an activity licence was re quired to manufacture tobacco goods in Montenegro, 
and Article 15 of the Law on Tobacco (RM OG Nos. 80.04 and 05/05) obliged each manufacturer to 
produce or purchase domestically-processed tobacco to cover at least 40 per cent of the annual output 
of cigarettes and other tobacco products, and no less  than 700 tons per year.  The activity licenses 
were administered by the Ministry of Agriculture and the Ministry of Health and awarded through 
public tender (see "Trading rights").  In response to  a Member who noted that the requirement to buy 
domestically-processed tobacco appeared to violate WTO rules, the representative of Montenegro said 
that this measure had been put in place to support some 500 families who lived in disadvantaged rural 
areas and whose main source of revenue was the growing of tobacco.  She noted that a new Law on 
Tobacco (OG MNE No. 48/08) had been adopted by  the Parliament on 11 August 2008.  The new 
Law, had abolished the requirement for each manufacturer to purchase a specific quantity of 
domestically-processed tobacco. 
161. The representative of Montenegro confirmed th at from the date of accession, Montenegro 
would apply its investment regime in a non- discriminatory manner to imports from all WTO 
Members and to domestically produced goods, in compliance with the WTO Agreement, including 
the Agreement on Trade-Related Investment Meas ures (TRIMs).  The Working Party took note of 
these commitments. 
- Free zones, special economic areas 
162. The representative of Montenegro said that fr ee zones and free warehouses were considered 
part of the customs territory of Montenegro, but business activities carried out there were subject to 
special conditions.  A free zone or free warehouse coul d be founded at or near a seaport or airport, or 
in other suitable locations.  So far, one free zone had been created - at the Port of Bar.  All kinds of 
activity could be conducted in a zone and a wa rehouse, except those prese nting a hazard to the 
environment, human health, material goods or national safety.   WT/ACC/SPEC/CGR/4/Rev.2 
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 163. The treatment of goods kept in free zones and free warehouses was regulated pursuant to 
Articles 167 to 181 of the Customs Law.  Both fore ign and domestic goods could enter a free zone or 
free warehouse, and no limit was set for the length of time the goods could remain there, although 
such goods could not be consumed nor used while being placed in a free zone or free warehouse.  
Exceptionally, certain domestic goods intended for expor t were subject to specific time limits, and if 
the deadline was not complied with or the goods were found to have been returned to another part of 
the customs territory of Montenegro, the Customs authorities would take action as prescribed in cases 
of failure to comply with specific conditions.  Goods could leave a free zone or free warehouse 
temporarily for processing, mounting, testing, attest ation, repair, marketing presentation, etc.  Such 
goods would have to be returned to the zone or wa rehouse (or exported) within a specified period and 
no later than one year from the date the goods were taken out of the zone or warehouse.  Upon special 
authorization of the Customs authorities, domestic goods not intended for export or processing could 
be stored in a free zone or free warehouse, but such goods would be kept separate from other goods.  
Goods entering the territory of Montenegro from a free zone without further processing were subject 
to normal customs duties and charges, internal taxes and other import restrictions, if applicable.   
164. Business activities carried out in a free zone or free warehouse were regulated according to 
the Law on Free Zones (RM OG Nos. 42/04 and 11/07) .  A free zone could be divided into several 
sub-zones.  Goods entering a free zone or free wa rehouse and consumed or used in accordance with 
the Law on Free Zones were not subject to customs duty, customs charges, or VAT.  The Law on Free 
Zones provided incentives to enterp rises operating in a free zone.  These enterprises were not liable to 
pay profit tax or real estate tax; foreign payment operations were generally unrestricted and could be 
carried out through any bank in Montenegro; loans c ould be granted or accepted without restriction; 
labour agreements could be negotia ted freely and up to 10 per cent of the employees could be foreign 
citizens; capital investments were unrestricted a nd the repatriation of capital and profits was free; 
banks, insurance companies and other financial ins titutions located in a free zone could be wholly 
foreign-owned; a foreign citizen could acquire real estate for his/her business in a free zone regardless 
of any reciprocity provision that would otherw ise apply; and private property could not be 
nationalized or expropriated.  The benefits were not conditioned on any export performance 
requirements.  Goods processed in a free zone and s ubsequently sold in Montenegro were not subject 
to customs duty or customs charges on the domestic  component (raw materials, labour, etc.) in these 
goods.  More favourable conditions applied when th e domestic component exceeded 50 per cent.   
165. A Member noted that the Law on Free Zones (R M OG No. 42/04) also appeared to exempt 
goods processed in a free zone in Montenegro from customs duties and charges on the domestic 
component in such goods.  Once the component exceeded 50 per cent, such goods would not be  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 61 
 
 
 subject to restrictions related to the foreign trade regime.  If no import duties or charges were applied 
in such instances, this provision  would constitute a local content requirement incompatible with 
Article III:5 of the GATT 1994 and Article 3 of th e Subsidies Agreement, and the provision would 
need to be abolished.   
166. In reply, the representative of Montenegro said that Article 21 of the Law on Free Zones 
(RM OG No. 42/04) stipulated that goods imported into Montenegro from a free zone were subject to 
customs duties, customs charges, VAT, and import r estrictions (if applicable).  Customs duties and 
charges were not payable on domestic materials and labour incorporated into the goods while in the 
zone.  Once the domestic component exceeded 50 per cent, goods imported from the zone were 
considered to be “domestic goods” and were not subj ect to restrictions related to the foreign trade 
regime (i.e., quantitative restrictions, licenses, antidumping and countervailin g duties and safeguards 
measures).  Customs duties and other charges we re payable, but decreased according to the 
percentage of domestic component in the goods.  She later noted that the Law had been amended to be 
brought into compliance with WTO rules (OG MNE No. 11/07). 
167. In response to a Member who noted that Article  23 of the Law on Free Zones appeared to be 
inconsistent with Montenegro's State aid a nd anti-subsidy obligations, the representative of 
Montenegro acknowledged that this Article was falli ng short of Montenegro's obligations.  She noted, 
however, that the real effect of this Article w as negligible as Montenegro only had one operational 
free zone, which had attracted a fairly limited number  of companies.  She nevertheless added that any 
provision of the Law on Free Zones inconsistent with WTO rules would be repealed.   
168. The representative of Montenegro confirmed th at, from the date of accession, free zones or 
free economic zones established in Montenegro, includi ng those referred to in paragraphs [164-167], 
would be administered in compliance with WTO provisions, including the Agreements on TRIPS, TRIMs, and Subsidies and Countervailing Measures.  She further confirmed that the right of firms to 
establish and operate in these zones would not be su bject to export performance, trade balancing, or 
local content requirements, and that goods importe d into, or produced from inputs imported into, these 
zones that were exempt from tariffs and certain tax es would be subject to standard customs formalities 
when entering the rest of Monten egro, including the application of tariffs and taxes on the imported 
components in the goods.  The Working Party took note of these commitments. 
- Government procurement 
169. The representative of Montenegro said that Montenegro had enacted the Law on Public 
Procurement (RM OG No. 40/01).  The Law super seded all previous provisions on Government WT/ACC/SPEC/CGR/4/Rev.2 
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 procurement in Montenegro.  According to the Law, all public entities should take the necessary 
measures to ensure the widest possible participation on equal terms in their invi tations to tender.  The 
procurement methods laid down in Article 7 of the Law included (i) direct purchasing, 
(ii) competitive bidding, (iii) two-stage bidding, (i v) open international pre- qualification of suppliers 
for major contracts, followed by limited competitive bidding, and (v) permissi ble standardization of 
goods undertaken in compliance with the Law.  The solicitation documents should encourage open 
competition, and set forth the detailed needs, pl ace of delivery, minimum performance requirements, 
warranties, maintenance requirements and any othe r pertinent terms and conditions.  Contracts for 
goods and works should be awarded to  the suppliers offering the right quality to meet identified needs 
for the specified quantity, at the lowest calculated pr ice, and at the right time.  Any factors other than 
price that would be taken into account in the eval uation of the offers should be specified in the 
solicitation documents.  Due care shoul d be taken to ensure the confidentiality of the offers.  The Law 
did not provide preferential treatment for domestic suppliers of goods or services.  Local competitive 
bidding - open to all suppliers with their seat or r esidency in Montenegro - would be considered when 
it was determined that foreign companies were not in terested or the project was too small for them.   
170. The appeals procedure was laid down in Article 79 of the Law.  Suppliers were invited to 
address complaints in writing to the public entity conc erned.  Unsatisfied with the response, an appeal 
should be lodged with the Public  Procurement Commission within eight days of receipt of the 
response.  The Public Procurement Commission was obliged to give its reply in writing within 
15 days of receipt of the appeal.   
171. She added that the Law on Public Procurement ha d been reviewed to be fully compliant with 
EU directives.  The new Law on Public Procur ement had entered into force on 29 July 2006 
(RM OG No. 46/06).   
172. Some Members asked whether Montenegro inte nded to join the Agreement on Government 
Procurement upon accession to the WTO.  In repl y, the representative of Montenegro said that 
Montenegro would consider joining the Agreemen t on Government Procurem ent within a reasonable 
period after accession.   
173. The representative of Montenegro confirmed that Montenegro would initiate negotiations for 
membership in the Agreement on Government Procur ement upon accession by tabling an entity offer at 
that time.  She also confirmed that , if the results of the negotiations were satisfactory to Montenegro and 
the other members of the Agreement, Montenegro w ould complete negotiations for membership in the 
Agreement by 31 December 2009.  The Worki ng Party took note of these commitments.  WT/ACC/SPEC/CGR/4/Rev.2 
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 - Transit 
174. The representative of Montenegro said that goods in transit were governed by provisions in 
the Foreign Trade Law (RM OG Nos. 28/04 and 37/07), the Customs Law (RM OG Nos. 07/02, 
38/02, 72/02, 21/03, 29/05, 66/06 and 21/08), the Decree on Implementation of the Customs Law (RM OG Nos. 15/03 and 81/06), and the Decree on Fees for Use of Roads by Foreign Vehicles (RM OG No. 36/05).  Montenegro could prohibit the transit of goods banned unde r the legislation of 
the Republic of Montenegro pursuan t to the Foreign Trade Law, and her Government could also ban 
imports, temporary imports or tran sit of goods if the circulation of such goods was banned under the 
legislation of the country of export, origin, or destination.   
175. According Articles 19 and 20 of the Foreign Trade Law, licenses could be required for the 
transit of certain goods.  In these cases, the purpos e of such licensing would be to protect either 
human, animal or plant life or health, national security, the environment or exhaustible natural 
resources, public morals, or intell ectual property rights, or to enforce any special rules related to gold 
and silver.  Based on Article 29 of the Foreign Trade Law, the transit of goods was subject to relevant 
veterinary, sanitary or phytosanitary requirements prescribed for particular types of goods.  She 
referred to the revised Decision on Control Li st for Export, Import and Transit of Goods 
(RM OG No. 45/07) for further details.   
176. The representative of Montenegro confirmed th at, from the date of accession, Montenegro 
would apply all its laws, regula tions and other measures governing transit of goods (including 
energy), such as those governing charges for transporta tion of goods in transit, in conformity with the 
WTO Agreement, including Article V of the GATT 1994.  The Working Party took note of this commitment. 
- Agricultural policies 
(a) Imports 177. The representative of Montenegro said that cu stoms duties constituted the main form of 
border protection for agricultural goods.  Certain fruit and vegetables were subject to specific duty (Table 2) in accordance with the new Law on Cu stoms Tariff, which had entered into force in 
January 2006.  She noted that Montenegro had imposed an additional levy on 124 items pursuant to 
the Decree on Special Charges on Importation of Ag ricultural and Food Products (RM OG Nos. 61/03 
and 63/03).  However, the Decree had been abolishe d with the entry into force of the new Law on 
Customs Tariff in January 2006, and the "special  charge" had been converted to specific-duty WT/ACC/SPEC/CGR/4/Rev.2 
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 elements of compound duties.  Montenegro's nomenclature counted 279 compound duties (Decree on 
the Harmonization of the Customs Tariff Nomenclature for the Year 2008 (RM OG Nos. 75/05 
and 17/07)).  The Law did not grant the authorities discretion to decide on the imposition of special 
levies or adjust such levies according to price or volume thresholds.   
178. Some 56 agricultural products were consider ed "strategic" in the sense that these were 
significant for the living standard of the populatio n and not produced in Montenegro, and these goods 
were accordingly subject to zero tariff or very lo w import duty.  Milk, fats, cooking oil, and sugar 
were considered basic commodities for human cons umption and exempt from VAT in support of low 
income households.  Excise taxes were levied on al coholic beverages and tobacco.  Tobacco was also 
subject to activity licensing.  A certain number of agricultural items were subject to import licensing pursuant to the Decision on Control List for Export, Import and Transit of Goods 
(RM OG No. 45/07).   
(b) Exports 
179. The representative of Montenegro said that Montenegro had applied an export duty of 
20 per cent on raw hides, but the export duty had been  eliminated with the entry into force of the 
present Law on Customs Tariff in January 2006.  No other agricultural product was subject to export 
duty.  Licensing requirements were applied pursuant to the Decision on Control list for Export, Import 
and Transit of Goods (RM OG No. 45/07).   
180. Montenegro had no export credit, export cred it guarantee, or export insurance programmes 
for agricultural or other products.  The Ministry of Agriculture, Forestry and Water Management 
operated a programme entitled the ''Improvement of  Market Position of Montenegrin Agriculture 
Products'' promoting domestic products at fairs and exhibitions, a campaign ''MADE IN 
MONTENEGRO'', and other promotional activities.  Montenegro sought to increase the exports of 
specific domestic products, notably early vegetabl es, lamb meat, njeguški  smoked ham, cheeses, 
wine, fish, honey, medicinal herbs and forestry products.   
(c) Internal policies 
181. The representative of Montenegro said that the agricultural sector had emerged from a 
socialist system favouring so-called "combinats" and neglecting the private sector to a market-based, 
non-interventionist policy framework applied since 2000.  The current agricultural policy focused on 
the development of sustainable agriculture perform ed by private farmers.  The budgetary support to  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 65 
 
 
 the sector was modest (around €12 per capita), and more than 80 per cent of the support was allocated 
to "green box" measures.   
182. The representative of Montenegro provided  information on domest ic support and export 
subsidies in the agricultural sector in the format of document WT/ACC/4 for the period 2002-2004 in document WT/ACC/SPEC/CGR/1 of 19 April 2005.  Th e data had subsequently been updated to 
cover the period 2004-2006 (document WT/ACC/SPEC/C GR/1/Rev.1).  Data for 2007 was circulated 
in document WT/ACC/SPEC/CGR/1/Rev.1/Add.1.  In  addition to "green box" measures, support was 
mainly provided in the form of direct per head payments to increase the herds of cattle, sheep and 
goats; quality breeding programmes (cattle and stalli ons); artificial insemination (cattle and swine); 
beehive modernization; grazing incentives (cattle); premiums to increase the production of milk and 
tobacco; premiums for cattle and milk; productio n programmes (figs, potato seeds and olives); and 
production increase programmes (grass, ce reals).  The support exceeded the de minimis  level of 
5 per cent for two types of commodities only (t obacco and cereals - rye, barley, etc.).   
183. Some Members noted that Montenegro did not apply any export subsidies in agriculture and 
requested Montenegro to bind export subsides at zero upon accession.  The representative of 
Montenegro replied that Montenegro would bind all export subsides at zero upon accession.   
- Trade in civil aircraft 
184. In response to a question about Montenegro's in tention concerning the Agreement on Trade in 
Civil Aircraft and the application of tariff duties to imports of aircraft and aircraft parts, the 
representative of Montenegro said that her Gove rnment intended to initiate negotiations for 
membership in the Agreement on Trade in Civil Aircraft after accession. 
- Textiles regime   
185. The representative of Montenegro said that Mo ntenegro did not have any special measures 
regarding trade in textiles.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL 
- Industrial property protection 
186. The representative of Montenegro said that th e State Union had been responsible for the 
formulation and enactment of substantive intell ectual property legislation before Montenegro's WT/ACC/SPEC/CGR/4/Rev.2 
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 independence - implementation and enforcement of State Union laws being the responsibility of the 
Republics.  When the Republic of Montenegro ha d declared its independence in June 2006, the 
Parliament had adopted a resolution whereby all la ws enacted by the State Union of Serbia and 
Montenegro would continue to be effective and enforced in Montenegro as national laws.  The 
Republic of Montenegro was now developing its own institutional capacity.  State Union legislation in 
the area of intellectual property included the Law on Copyright and Related Rights (SM OG 
No. 61/04), the Law on Patents (SM OG Nos. 32/04 and 35/04), the Law on Trademarks (SM OG 
Nos. 61/04 and 7/05), the Law on Legal Protec tion of Designs (SM OG No. 61/04), the Law on 
Indications of Geographical Origin (SM OG No. 20/06), and the Law on Protection of Topographies 
of Integrated Circuits (SM OG No. 61/04).  In her view, all these laws were in compliance with the 
TRIPS Agreement.  
187. New legislation covering intellectual property ri ghts had been developed since Montenegro's 
independence.  A Law on Optical Discs (RM OG No. 2/07) had been adopted in early 2007 and Montenegro's criminal code and customs law had b een amended to be brought into conformity with 
the TRIPS Agreement.  In addition, new laws on plant varieties protection (RM OG Nos. 48/07 
and 48/08) and undisclosed information (OG MNE No. 96/07) had been passed in August and 
December 2007 respectively.  She noted that Monten egro intended to enact new intellectual property 
laws covering all intellectual property rights.  She provided detailed information about the 
implementation of the TRIPS Agreement in  document WT/ACC/CGR/14 of 30 May 2006. 
- Responsible agencies for policy formulation and implementation 
188. The representative of Montenegro said that the Ministry for Economic Development was 
responsible for the protection of industrial property rights and the Ministry of Culture and Media for the protection of copyright and related rights.  A Montenegrin Intellectual Property Office (MIPO), 
responsible for the registration of intellectual pr operty rights in Montenegro, had recently been 
established (Decree on a Manner and Organization of the State Administration RM OG Nos. 54/04, 
78/04, 6/05, 61/05, 6/06, 32/06, 42/06, 56/06, 60/06, 72/06, and 6/07).  The MIPO had become fully operational on 28 May 2008.  The Ministry fo r Economic Development was responsible for 
overseeing MIPO's activities. 
189. A Regulation on Recognition of Intellectual Prope rty Rights, which regulated the recognition 
of all intellectual property rights registered with the Union Intellectual Property Office or the Serbian 
Intellectual Property Office (SIPO), had been adopted in September 2007 (RM OG No. 61/07).  Under the Regulation, any rights registered with the Union Intellectual Property Office or SIPO and 
pending applications filed with these Offices before  MIPO had become operational were enforceable  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 67 
 
 
 in Montenegro.  Since 28 May 2008, when MIPO ha d started operating, all applications had to be 
filed with the Montenegrin Office. 
190. She added that enforcement of border measures was the responsibility of the Customs 
Administration and criminal enforcement the responsibility of the Ministry of Justice. 
- Participation in international intellectual property agreements  
191. The representative of Montenegro said that M ontenegro had become a member of the World 
Intellectual Property Organization (WIPO) on 3 December 2006 and, as a successor State of the 
former State Union of Serbia and Montenegro, Mo ntenegro had accepted the Convention Establishing 
the World Intellectual Property Organization; the Paris Convention for the Protection of Industrial 
Property; the Berne Convention for the Protection of Literary and Artistic Works; the Madrid 
Agreement for the Repression of False or Decep tive Indications of Source on Goods; the Madrid 
Agreement Concerning the International Registration of Marks; the Protocol Relating to the Madrid 
Agreement Concerning the International Registrati on of Marks; the Hague Agreement Concerning the 
International Deposit of Industria l Designs (the Hague Act (1960) and the Stockholm Complementary 
Act (1967)); the Nice Agreement Concerning the Inte rnational Classification of Goods and Services 
for the Purposes of the Registration of Marks; th e Locarno Agreement Establishing an International 
Classification for Industrial Designs; the Lisbon Ag reement for the Protection of Appellations of 
Origin and their International Registration; th e Nairobi Treaty on the Protection of the Olympic 
Symbol; the Trademark Law Treaty; the WIPO Copyright Treaty; the WIPO Performances and 
Phonograms Treaty; the Budapest Treaty on th e International Recognition of the Deposit of 
Micro-organisms for the Purposes of Patent Procedure; the Patent Cooperation Treaty; the Brussels Convention Relating to the Distribution of Progra mme-Carrying Signals Transmitted by Satellite; the 
Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication 
of their Phonograms; the Treaty on the Internationa l Registration of Audiovisual Works; and the 
Rome Convention for the Protection of Perform ers, Producers of Phonograms and Broadcasting 
Organizations.   
192. In response to a question about Montenegro's plans to enact legislation to implement the 
Geneva Phonograms and Brussels Satellite Conventions , the representative of Montenegro noted that 
these conventions, as all international conventions and agreements ratified by the former Federal 
Republic of Yugoslavia or the State Union, were an in tegral part of Montenegro's legal system.  These 
conventions were directly enfor ceable and prevailed over domestic legislation.  She noted that the 
Law on Copyright and Related Rights captured the ma in elements of these two conventions.  In her 
view, the implementation of these conventions did not require the adoption of any new legislation.   WT/ACC/SPEC/CGR/4/Rev.2 
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 - Application of national and MF N treatment to foreign nationals  
193. The representative of Montenegro said that pur suant to Article 106 of the Law on Copyright 
and Related Rights, Article 6 of the Law on Trad emarks, Article 7 of the Law on Indications of 
Geographical Origin, Article 10.2 of the Law on Lega l Protection of Design, Article 3 of the Law on 
Patents, and Article 7 of the Law on Protection of Topographies of Integrated Circuits, foreign natural 
and legal persons enjoyed the same intellectual pr operty rights as domestic na tural and legal persons 
when so provided fo r under international agreements or under the principle of reciprocity.  Upon 
accession, all WTO Agreements, including the TRIPS Agreement, and all intellectual property conventions and treaties to which Montenegro was a party would become part of Montenegro's legal 
system and would supersede domestic legislati on, thereby ensuring the application of national 
treatment to foreign nationals.  The only exception to this general national treatment rule was the 
requirement that foreign nationals be represented by registered agents or domestic attorneys when 
dealing with governmental bodies administering inte llectual property rights (Article 11 of the Law on 
Trademarks, Article 11 of the Law on Indications of Geographical Origin, Article 16 of the Law on 
Legal Protection of Design, and Ar ticle 4 of the Law on Patents). 
194. She added that Montenegro's legislation did not contain any specific provision on 
MFN treatment.  However, MFN treatment was guaranteed through the direct application of the WIPO Conventions, to which Montenegro was a party.  Upon Montenegro's accession, the 
TRIPS Agreement would also become an integral  part of Montenegro's legal system, and the 
provisions of Article 4 on MFN treatment would then be directly enforceable. 
195. In response to a Member who invited Mont enegro to amend the Law on Copyright and 
Related Rights to incorporate explicitly the nati onal treatment principle, the representative of 
Montenegro said that the Berne Convention w as directly enforceable and took precedence over 
domestic laws and regulati ons.  In her view, the Law on Copyrigh t and Related Rights did not need to 
be amended.   
- Fees and taxes  
196. The representative of Montenegro said that M ontenegro was in the process of setting its own 
fees and taxes for registration of intellectual prope rty rights with MIPO.  A Law on Amendments to 
the Law on Administrative Taxes had been adopted in April 2008 to this effect (OG MNE No. 22/08).  
She provided a list of fees for registration of in tellectual property rights in Annex 1 of document 
WT/ACC/CGR/28/Add.2.  She noted that Montenegrin nationals only had to pay 10 per cent of the  WT/ACC/SPEC/CGR/4/Rev.2 
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 prescribed fees.  However, as of the date of accession  to the WTO, Montenegrin and foreign nationals 
would be subject to the same fees.  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS  
- Copyright and related rights  
197. The representative of Montenegro said that copy right and related rights were protected under 
the Law on Copyright and Related Rights of 24 December 2004 (RM OG No. 61/04).  The Law regulated the rights of authors of literary, scientif ic and artistic works; performers; producers of 
phonograms and videograms; broad casting organizations; and datab ase producers (Article 1).  
Copyright was provided for original intellectual crea tions, irrespective of form; artistic, scientific or 
other value; purpose; size; content; and expression (Ar ticle 2).  Literary, artistic, and scientific works 
protected included written works (books, brochures, ar ticles, translations, computer programs in any 
form, including preparatory design material and ot her); spoken works (lectur es, speeches, orations, 
etc.); dramatic, dramatic-musical, choreographic and pantomime works, as well as works originating 
from folklore; musical works, with or without word s; films (cinema and television); fine art works 
(paintings, drawings, sketches, graphics, sculptures,  etc.); works of architecture, applied art and 
industrial design; cartographic works (geographi c and topographic maps); drawings, sketches, 
dummies and photographs; and theatre plays (Article 2).  Satellite broadcasting was regulated under 
Article 28 of the Law on Copyright and Related Ri ghts, and optical discs were protected under the 
Law on Optical Discs (RM OG No. 2/07).  The Law on Optical Discs provided for fines and for the 
temporary prohibition of the ma nufacturing of optical discs and/ or production parts in case of 
infringement of intellectual property rights.   
198. Copyright arose from the moment the work was created.  Copyright protection was provided 
for the life time of the author and 70 years afte r his/her death.  The rights of performers and 
phonograms and videograms producers were protected fo r 50 years from the date of recording or first 
disclosure of the performance, the rights of broad casting organizations for 20 years from the date of 
first broadcast, and the rights of database produ cers for 15 years from the date of creation of the 
database - in the case of significant modifications of  the database contents, the term of protection 
could be extended for another 15 years.  Protection of  copyright and related rights was not subject to 
any acquisition or use requirements, but the Law provided for optional deposit procedures.   WT/ACC/SPEC/CGR/4/Rev.2 
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 199. Right holders had the exclusive right to expl oit the work and aut horize its publication, 
reproduction and circulation, including its presentati on in public, broadcast, adaptation, and rental 
(Articles 19 to 37).  Limitations to authors' economi c rights were laid down in Articles 40 to 55 of the 
Law.  The moral rights of authors and copyright holders were provided in Articles 14 to 18 of the 
Law.  Moral rights were perpetual and indivisibl e.  The economic and moral rights of a deceased 
author, with the exception of the right to publish an undisclosed work and the right to modify an 
existing work, were transferred to th e heirs of the author or, in their absence, to authors' associations 
and arts and science institutions (Article 56).  After expiration of the author's economic rights, 
authors' associations and arts and science institutions  were responsible for protecting the moral rights 
of deceased authors (Article 150).  Noting that para graph 2 of Article 150 stipulated that any person 
was entitled to protect the right of authorship an d integrity of the works of a deceased author, a 
Member questioned who would speak for the author  in case of disagreement.  The representative of 
Montenegro replied that there was no clear provision on this issue.  In her view, the heirs of the 
author, or in their absence the au thors' association or relevant ins titution, would have a predominant 
influence.   
200. In response to a question, she confirmed that  the statutory licence created in Article 53 
extended to for-profit educational in stitutions.  In her opinion, this Article complied with the concept 
of statutory licence set out in Article 9.2 of the Berne Convention, which did not exclude commercial 
entities from the scope of such licenses.  A Member  noted that Article 54 of the Law on Copyright 
and Related Rights appeared to create a TRIPS-inc onsistent statutory licence, as any literary work 
published in a mass media could be subsequently reproduced or communicated to the public, unless 
the publisher or author expressly prohibited such  reproduction or communication.  This Member 
invited Montenegro to bring this Ar ticle into conformity with the TR IPS Agreement.  In response, the 
representative of Montenegro said that Article 54 of the Law on Copyright and Related Rights 
reflected the provisions of Article 10 bis.1 of the Berne Convention, wh ich allowed national legislation 
to provide for free use or statutory licen ce for the use of pertinent works.   
201. Asked to clarify the scope of Article 38, the representative of Montenegro explained that 
Article 38 did not establish a personal use exception, nor did it impose any statutory licence.  
Article 38 gave right holders a right of compen sation for economic losses caused by the use of 
technical devices used for (unlawful) copying of co pyrighted works.  This Article entitled collective 
rights associations to levy a duty on imports or sales of such technical devices.   
202. In response to a Member who asked how Monten egro intended to codify into the Law on 
Copyright and Related Rights Article 18 of the Be rne Convention, which required that copyright  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 71 
 
 
 protection be applied to all works which had not falle n into the public domain in the country of origin 
through the expiry of the term of protection, the representative of Montenegro noted that Article 195 
of the Law on Copyright and Related Rights provided for such protection.  Pursuant to this Article, 
copyright protection extended to all works, which at the moment of entry into force of the Law, had 
not fallen into the public domain through the expiry  of the term.  Works which had fallen into the 
public domain through the expiry of the term could no t be protected anew.  There was, in her view, no 
need for further codification of Article 18.  She added that the Berne Convention was directly 
enforceable and took precedence over domestic legislation.   
203. Some Members questioned the compatibility of  Article 125 of the Law on Copyright and 
Related Rights relating to phonograms with Artic le 15 of the WIPO Performances and Phonograms 
Treaty and of Article 144(2) of the Law on Copyright  and Related Rights concerning the protection of 
producers of videograms with Article 12 of the TRIPS Agreement.  In response, the representative of 
Montenegro acknowledged that the Law on Copyright and Related Rights was falling short of the requirements of paragraph 4 of Article 15 of the WIPO Performances and Phonograms Treaty and of 
Article 12 of the TRIPS Agreement.  She noted th at a new law on copyright would be developed soon 
to replace the State Union legislation on copyright and bring Montenegro's copyright legislation into 
conformity with the TRIPS Agreement and th e WIPO Performances and Phonograms Treaty.  
- Trademarks, including service marks  
204. The representative of Montenegro said that  trademarks, including service marks, were 
protected pursuant to the Law on Trademarks (SM OG Nos. 61/04 and 7/05).  A trademark could 
consist of words, slogans, lette rs, numbers, pictures, drawings, colour combinations, three-
dimensional forms, or a combination of such elem ents, as well as musical phrases that could be shown 
graphically.   
205. Applications for registration had to be file d with the Union Intellectual Property Office 
(MIPO as of 19 July 2007).  Documents to be submitted included the registration form; the sign to be 
protected; a list of goods and services to which the sign applied; and in the case of registration of 
collective trademarks, the general act on collective trademark which set out the conditions of use of 
collective trademarks and the measures to be taken in case of infringement of the collective trademark 
or violation of the general act.  Registration was s ubject to fees set out under the Law.  Applications 
were examined as to form and substance.  Prior u se was not a precondition for registration.  Priority 
rights for registered trademarks were set accordi ng to the filing date and the rules of the Paris 
Convention.  Registered marks were published in the Official Journal of the Union Intellectual 
Property Office (MIPO Official Journal as of 19 July 2007).  Protection was provided for ten years WT/ACC/SPEC/CGR/4/Rev.2 
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 from the filing date, a period which could be exte nded an unlimited number of times upon payment of 
the appropriate fee.   
206. Failure to use a trademark for an uninterrupted period of five years without justified reasons 
could lead to termination of the protection.  "Justified reasons" were understood to mean any 
circumstances occurring independently of the right holders' will and creating obstacles to the use of 
the trademark.  A registered trademark could be decl ared void, partly or fully, if it was determined 
that, at the time of approval, the legal conditions  had not been met.  Pursuant to Article 51, 
paragraph 1 of the Trademark Law, the IP Office, if informed - in any way and by any interested party 
- that the requirements for registration had not been met, could invalidate a trademark ex officio . 
207. The Law on Trademarks also included specific provisions on the protection of well-known 
marks.  Under the Law, a mark which was a reproduc tion, imitation, translation or transliteration of a 
well-known mark used by third persons for marki ng their goods and/or services, could not be 
protected as a trademark, if the use of such a mark w ould result in an unfair benefit or an injury to the 
distinctive character and/or reputation of the well-known mark. 
208. She added that a new law on trademarks would be developed soon to replace the State Union 
legislation on trademarks.  
- Geographical indications, including appellations of origin  
209. The representative of Montenegro said that a ne w Law on Indications of Geographical Origin 
had been adopted on 11 May 2006 (SM OG No. 20/06).   The Law protected appellations of origin and 
geographical indications (Article 1) .  Appellations of origin were de fined as the geographical name of 
a country, region or locality, used to designate a product originating therein, the quality and characteristics of which were due exclusively or  essentially to the geographical environment, 
including natural and human factors, and which was produced, manufactured or processed within a 
specific limited geographical area (Article 3).  Geographical indications were indications that 
identified a good as originating from the territory of a specific country, region or locality within such 
territory, where a quality, reputation or other charact eristic of the good could be essentially attributed 
to its geographical origin (Article 4).   
210. Applications for registration of appellations of origin and geographical indications had to be 
filed with the Union Intellectual Property Office (MIPO as of 19 July 2007).  Documents to be 
submitted included the registration fo rm, data on the geographical area a nd, in the case of appellations 
of origin, a report on the method of production and the qualities and characteristics of the product.   WT/ACC/SPEC/CGR/4/Rev.2 
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 Natural and legal persons wishing to use a geographical  indication or an appellation of origin had to 
file an application with the Union Intellectual Property Office (MIPO as of 19 July 2007) for 
recognition as an authorized user.  Applications for recognition as an authorized user had to be 
accompanied by a proof of activity and, in the case of appellations of origin, by a product control 
certificate.  Applications for registration of appe llations of origin and geographical indications, and 
appellations for recognition as an authorized user we re examined as to form and substance.  Approved 
appellations of origin and geographical indicatio ns and recognitions of authorized users were 
published in the Official Journal of the Union Inte llectual Property Office (MIPO Official Journal as 
of 19 July 2007).  The validity of appellations of  origin and geographical indications was not limited 
in time.  The right to use an appellation of origin  or a geographical indication was granted for three 
years from the date of entry of the authorized user in the appropriate registry.  This right could be 
renewed an unlimited number of times upon submi ssion of new applications for recognition.  
Registration of appellations of or igin or geographical indications and recognition as an authorized 
user could be declared void if it was determined th at, at the time of approval, the legal conditions had 
not been met or, in the case of recognition as an aut horized user, that the conditions for recognition 
had ceased to exist.  Registered appellations of or igin and geographical indications ceased to be valid 
when protection in the country of origin elapsed, and registered geographical indications could be 
annulled by court decision if it was established th at a geographical indication had become a generic 
name.  She confirmed that Montenegro's legisla tion on geographical indica tions covered all goods.  
Non-geographical names (e.g. traditional or historic  names) could be regi stered as geographical 
indications in accordance with the draft Law on Indications of Geographical Indications.  
211. A Member was concerned that the provisions of Article 14 of the new Law requiring foreign 
applicants to submit documents proving the appli cant's right to the geographical indication in the 
country of origin could be used to deny protecti on to applications from countries with a different 
system of protection.  This Member sought confir mation that certification mark registrations or non-
official documents such as affidavits were accep ted as evidence of protection.  In response, the 
representative of Montenegro explained that Article 14 allowed foreign persons to file an application 
if the appellation of origin or geographical indication was recognized in the applicant's country of 
origin, irrespective of the registration system a pplied in that country.  Thus, certification mark 
registrations and affidavits were accepted as ev idence of protection.  Owners of geographical 
indications could provide their own affidavits att esting protection in the country of origin, provided 
such documents were considered sufficient to prove the existence of a right in the country of origin. 
212. Asked to explain the rationale of Article 7 which excluded from protection geographical 
indications for wines identical to the name of a variet y of grape that existed in the territory of Serbia WT/ACC/SPEC/CGR/4/Rev.2 
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 and Montenegro before 1 January 1995, the representa tive of Montenegro replied that Article 7 of the 
Law was consistent with Article 24.6 of the TRIPS Agreement.   
213. Noting that Article 46 prohibited the transfer of rights, licence agreements, pledges, 
franchises or the like of geographical indications  and relevant trademarks, a Member invited 
Montenegro to explain the effect of such a provision on geographical indications originating in a foreign country where such transactions were not pr ohibited, and the result if such a transaction was 
effected.  In response, the representative of Mont enegro explained that Ar ticle 46 applied only to 
domestic geographical indications a nd appellations of origin.  Artic le 46 had no effect on foreign 
geographical indications, including those originating in a country where such transactions were not 
prohibited.  She added that if such a transac tion was made, it would be declared void and the 
geographical indication or appellation of  origin would not be cancelled.   
214. A Member noted that Article 44 of the new Law did not seem to protect the rights of 
trademark owners as required by Articles 16.1 an d 24.5 of the TRIPS Agreement, as it appeared to 
allow for a geographical indication to be registered even in case of conflict with a prior trademark 
which could result in a likelihood of confusion.  The representative of Montenegro noted that 
Article 44 referred only to geographi cal indications, not to appellations of origin.  She acknowledged, 
however, that Article 44 did not guarantee the exclusive rights of the owner of a prior-in-time trademark against a later-in-time and confusingly sim ilar geographical indication.  In order to address 
this issue, a new Law on Indications of Geographica l Origin had been passed by the Parliament on 
29 July 2008 in replacement of the former Union law (OG MNE 12/08).  The Law had come into 
effect on 19 August 2008 and was in full compliance with Articles 16.1 and 24.5 of the TRIPS Agreement.   
- Industrial designs  
215. The representative of Montenegro said that industr ial designs were protected pursuant to the 
Law on Legal Protection of Design (SM OG No. 61/04).   Industrial designs were defined as the two- 
or three-dimensional appearance of a product or  part thereof whose character resulted from its 
ornamentation or special features of lines, contours, colours, shape, texture, or materials, or their combination (Article 2).  Only new industrial d esigns presenting an "individual character" could be 
registered (Article 3).  A design was considered "new" when no identical design had been made 
available to the public before the date of filing of the application for registration, or when no 
application for registration of an identical design ha d yet been filed.  Designs were deemed identical 
when they presented only "immaterial," i.e. neg ligible, differences (Article 4).  A design was 
considered to present an "individual character" when the overall impression the design produced on an  WT/ACC/SPEC/CGR/4/Rev.2 
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 informed user differed from the overall impression produced by any other design made available to 
the public before the date of filing of the application for registration (Article 5).   
216. Applications for registration of an industria l design had to be submitted to the Union 
Intellectual Property Office (MIPO once operational).  Registered designs were protected for 25 years 
from the filing date, provided the prescribed fees had b een duly paid (Article 11).  Registration could 
be nullified if it was proven that the required cond itions had not been met when protection had been 
granted.   
- Patents  
217. The representative of Montenegro said that the Law on Patents (SM OG No. 32/2004) 
protected inventions under two regimes, the patent  regime and the petty patent regime.  Patents 
protected inventions which were new, involved an inventive step, and were industrially applicable 
(Article 2).  Petty patents protected inventi ons with a lesser level of inventiveness.   
218. Applications for registration of a patent had to  be filed with the Union Intellectual Property 
Office (MIPO once operational).  Documents to be submitted included the registration form, a 
description of the invention, one or more claims for protection of the invention through a patent or a 
petty patent, any drawings referred to in the descrip tion and claim(s), an abstract of the description, 
and proof of payment of the prescribed filing fee.  Pa tent applications were subject to examination as 
to form and substance.  App lications having successfully passed the formal examination were 
published in the Official Journal of the Union In tellectual Property Office (MIPO Official Journal 
once MIPO would be operational).  Their substance was examined after payment of the prescribed 
examination fee.  Registered patents were published in the Official Journal.  Priority rights were 
established according to the filing date or, if applicab le, to the priority rules of the Paris Convention.  
Petty patent applications were only examined as to form.  Petty patent applications were not 
published, but approved petty patents were subject to publication.   
219. Patents were granted for 20 years, non renewabl e, from the filing date.  Petty patents were 
valid for six years from the filing date, a period which could be renewed twice for two years upon 
payment of the prescribed fee.  Patents and petty pa tents could be declared void if it was proven that 
the required conditions had not been met when protecti on had been granted or that the extent of rights 
granted was broader than justified by the description of the invention.   
220. Conditions and procedures for granting compulsory  licenses were laid down in Articles 63 - 70 
of the Law.  Compulsory licenses could be granted in  case of refusal of the patent holder to conclude a WT/ACC/SPEC/CGR/4/Rev.2 
Page 76  
 
 licensing agreement, or of imposition of unjustif ied conditions for the conclusion of such an 
agreement.  The scope and duration of a compulsory licence were limited to the purpose for which the 
licence had been granted.  Requests for issuance of  compulsory licenses had to be submitted to the 
Ministry competent in the field in which the invention would be applied.  Decisions to grant a compulsory licence were subject to judicial revi ew by the Administrative Court of Montenegro 
(Article 70).  The right of the patent holder to re muneration was regulated by Article 64.  Under this 
Article, in the absence of Agreement between the part ies, the Basic Court or the Commercial Court, as 
the case may be, determined the amount of remune ration and the method of payment, taking into 
account the merits of each individual case and the economic value of the compulsory licence - basic courts had jurisdiction over natural persons and commercial courts over lega l persons and 
entrepreneurs.  In response to a Member who asked  whether remuneration decisions of basic courts 
and commercial courts were subject to judicial  review as required under Article 31 (j) of the 
TRIPS Agreement, the representative of Montenegro confirmed that decisions of basic courts could be appealed to the Superior Court and decisions of commercial courts to the Appellate Court.  
221. Asked to clarify the apparent contradiction be tween Article 7.2 which prohibited patents for 
surgical, therapeutic or diagnostic methods, and Ar ticle 8 which allowed pa tents of new surgical, 
therapeutic or diagnostic methods using a know n substance, the representative of Montenegro 
explained that Article 7.2 prohibited patents for surgical, therapeutic, or diagnostic methods, but 
allowed patents for substances or compositions used in these methods.  As for Article 8, it stipulated 
that substances and compositions for treatment by surgical, therapeutic or diagnostic methods which 
had not been used in a similar way before were patentable.  Thus, while surgical, therapeutic or 
diagnostic methods could not be protected through  a patent, substances and compositions used in 
these methods were patentable.   
222. A Member noted that Article 43, by requiring th at the subject matter of a patent application 
"constitute a technical solution of a specific problem", seemed to create a fourth requirement of 
patentability in contradiction with Article 27.1 of the TRIPS Agreement.  This Member also observed 
that Article 63 did not ensure that in the case of semiconductor technology, th e scope and duration of 
a compulsory licence should only be for public  non-commercial use or to remedy a practice 
determined after judicial or administrative process to be anti-competitive as provided for in 
Article 31 (c) of the TRIPS Agreement.  In respon se, the representative of Montenegro said that a new 
Law on Patents had been drafted to bring Monteneg ro's regime into conformity with Articles 27.1 
and 31 (c) of the TRIPS Agreement.  The dr aft had been approved by the Government in 
February 2008 and was pending passage by Parliament.  WT/ACC/SPEC/CGR/4/Rev.2 
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 - Plant variety protection  
223. The representative of Montenegro said plant varieties were protected under the Law on 
Protection of Varieties of Agricultural and Forest Pl ants (FRY OG No. 28/2000).  This Law, however, 
did not meet international standards.  A new UP OV-compliant Law on Protection of Plant Varieties 
had therefore been adopted (RM OG Nos. 48/07 and 48/08).  The new law regulated the rights and obligation of holders of breeders' rights and the pro cedures for protection of plant varieties.  The law 
was applicable to all new, distinct, uniform, and stable plant genera and species designated by an 
appropriate denomination.  Protection was granted for 25 years from the date the breeder's rights had 
been granted - 30 years for trees and wines.  Th e new law guaranteed the application of national 
treatment to foreign nationals. 
- Layout designs of integrated circuits  
224. The representative of Montenegro said that layo ut designs of integrated circuits were 
protected under the Law on Protection of Topographies of Integrated Circuits (SM OG No. 61/04).  Applications for registration had to be filed w ith the Union Intellectual Property Office (MIPO once 
operational).  Rights arose as of the filing date or the date of first commercial use anywhere in the 
world, whichever was first, and ceased at the end of the 10
th calendar year from the date the layout 
design of integrated circuits had been created.  In  response to a question, she added that the Law did 
not provide for interim measures.   
- Requirements on undisclosed information,  including trade secrets and test data  
225. The representative of Montenegro said that th ere was no specific law protecting undisclosed 
information.  Business secrets were prot ected under the Law on Business Companies 
(RM OG No. 6/02), the Criminal Code (RM OG No s. 70/03 and 13/04), the Law on Protection of 
Varieties of Agricultural and Forest Plants (FRY OG Nos. 24/98 and 26/98), the Law on Protection of 
Topographies of Integrated Circuits (SM OG No. 62/04), the Law on Medicines (RM OG No. 80/04) 
and the Law on Medical Devices, but these laws did not fully meet the requirements of the 
TRIPS Agreement relating to undisclosed informat ion.  A new Law on Protection of Undisclosed 
Information, which protected undisclosed inform ation in conformity with Article 39 of the 
TRIPS Agreement, had therefore been adopted (OG MNE No. 96/07).  She confirmed that this Law 
provided for a period of exclusivity that ensured protec tion of undisclosed test or  other data relating to 
pharmaceutical and agricultural chemicals from reliance by unauthorized third parties.  WT/ACC/SPEC/CGR/4/Rev.2 
Page 78  
 
 226. Having reviewed the new Law on Protection of Undisclosed Information, a Member noted 
that Article 9.3.1 seemed to extend the exception beyond that allowed for in Article 39.3 of the 
TRIPS Agreement.  This Member also asked Mont enegro to clarify whether Article 9.5 covered 
agricultural chemical products.  In response, th e representative of Montenegro said that her 
Government would amend Article 9.3.1 of the Law on  Protection of Undisclosed Information to bring 
it into conformity with Article 39.3 of the TRIPS Ag reement.  She confirmed that Article 9.5 covered 
agricultural chemical products.  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  
227. The representative of Montenegro said that abuse of patent rights, i.e. refusal to grant a 
licence or the setting of unreasonable licensing conditions, could result in compulsory licensing.  She added that the Law on Protection of Competition (RM OG No. 69/05) included provisions on 
measures against unfair competition, monopolistic activities and limitati on of the market (Article 2). 
- ENFORCEMENT  
- Civil judicial procedures and remedies  
228. The representative of Montenegro said that civ il judicial procedures and remedies related to 
intellectual property were governed by the Law on Civil Procedures (RM OG Nos. 22/04, 28/05 
and 76/06) and Montenegro's intellectual property la ws.  Civil courts had jurisdiction over civil 
proceedings.  However, when both parties were legal persons or entrepreneurs, or when the disputes 
arose from a commercial activity, the case was brought  before the Commercial Court.  Disputes 
involving a natural person or arising from a non-co mmercial activity were handled by the Basic 
Court.   
229. Courts had the authority to order production of evidence; award damages; issue injunctions to 
prevent further violation; and order seizure, d estruction or alteration of infringing goods, and 
materials and implements used in the creation of infringing goods.  Right holders' requests to destroy 
or alter infringing goods or materi als and implements were  always granted.  The representative of 
Montenegro noted, however, that the Law on Protecti on of Topographies of Integrated Circuits did 
not contain any provision on destruction or alte ration of infringing goods, and materials and 
implements used in their creation.  She added that  pursuant to paragraph 4 of Article 177 of the Law 
on Copyright and Related Rights, the plaintiff could, instead of requesting destruction or alteration of 
the infringing goods, ask that the goods be handed over to him.    WT/ACC/SPEC/CGR/4/Rev.2 
 Page 79 
 
 
 230. Damages were determined on the basis of direct  losses, including any lost profit, taking into 
account, in particular, the remuneration that would have been payable had the right been lawfully 
used.  When filing a case, the plaintiff had to sp ecify the amount of damages and submit evidence to 
support the claim.  If the defendant objected to th e proposed amount, damages were calculated by an 
expert appointed by the Court.  She noted that the defendant had to submit evidence to support its 
objection.  The expert's review was not triggered sole ly by the defendant's sole conclusory objection.  
She confirmed that compensatory damages could include attorney's fees.  Asked whether 
Montenegro's legislation provided for the indemnifica tion of the wrongfully or restrained defendant in 
accordance with Article 48 of the TRIPS Agreement, she noted that pursuant to Article 154.1 of the 
Law on Contracts and Torts (SFRY OG Nos. 29/78, 39/85, 45/89, and 57/89; FRY OG Nos. 31/93, 22/99, 23/99, 35/99, and 44/99) any person having cau sed an injury was required to pay compensation 
for such injury, unless this person proved that he/she was not guilty.   
231. Right holders could claim pre-established damages in case of infringement involving 
copyright and related rights, patents, trademar ks, and undisclosed information and trade secrets 
(Article 178 of the Law on Copyright and Relate d Rights, Article 93.2 of the Law on Patents, 
Article 57.3 of the Law on Trademarks, Article 56 of the Law on Legal Protection of Design, and 
Article 27.4 of the Law on Protection of Topographi es of Integrated Circuits).  In the event of 
intentional infringement or infringement by gro ss negligence, pre-established damages could be 
claimed up to three times the amount of "usual remune ration" that would have been paid had the right 
been used lawfully.  "Usual re muneration" was understood as the amount payable by the user of the 
right to the right holder for the lawful use of the right in the normal course of trade (retail price, 
licence fee or the like).   
232. Asked whether Montenegro's legislation permitted the court to order the defendant to provide 
information about third parties related to an infri ngement or to hand over documents relating to the 
infringement pursuant to Article 47 of the TRIPS Ag reement, the representative of Montenegro noted 
that Article 47 did not oblige Members to give judicial authorities the power to order an infringer to inform the right holder of the identity of third persons involved in the production and distribution of infringing goods and services.  Nonetheless, such a provision had been included in the Law on 
Copyright and Related Rights (Article 185) and her Government intended to amend the legislation on 
trademarks and patents along the same lines.  In  response to a question, she confirmed that 
Montenegro's legislation complied with the genera l obligations laid down in Article 41 of the 
TRIPS Agreement. WT/ACC/SPEC/CGR/4/Rev.2 
Page 80  
 
 - Provisional measures  
233. The representative of Montenegro said th at provisional measures were governed by 
Articles 182 to 184 of the Law on Copyright and Rela ted Rights; Articles 92, 94 and 95 of the Law on 
Patents; Articles 57 and 61 to 64 of the Law on Tr ademarks; Articles 60 to 63 of the Law on Legal 
Protection of Design; Articles 60 to 64 of the Law on Indications of Geographical Origin; Articles 14 
and 17 of the IPR Enforcement Law; Article 271 of the Law on Civil Procedures; and the Law on 
Execution Procedures (RM OG No. 23/04).  Courts could, upon request of the right holder and 
presentation of credible evidence of an imminent or actual infringement, order provisional measures to prevent infringement or to preserve relevant ev idence.  Similar provisions had been included in the 
draft Law on Protection of Undisclosed Information.  
234. Provisional measures included seizure, removal from channels of commerce of infringing 
goods, and injunctions prohibiting the continuation of  actions that could lead to infringement.  
Inspection or rooms, books, documents, databases, and examination of witnesses and experts were 
also permitted.  Provisional measures could be requested prior to an action being filed for 
determination on the merits of a claim.  Pursuant  to Article 64 of the Law on Trademarks, the court 
could order an applicant to deposit a security in th e event the request was found to be groundless - no 
such provision had been included in the Law on Copyright and Related Rights.  If the court 
considered the evidence presented to support a reque st credible enough, provisional measures could 
be ordered within a few weeks - or days if circumstances permitted.  Provisional measures could be 
ordered inaudita altera parte  in the case of copyright and trademark infringement actions if there was 
a demonstrable risk that pertinent evidence might be destroyed or impossible to obtain at a later stage, 
and in the case of irreparable harm to the right holder as required in Article 50.2 of the 
TRIPS Agreement.  Where provisional measures had been adopted inaudita altera parte , the parties 
affected were given notice, in accordance with Article 50.4 of the TRIPS Agreement (Article 183.3 of 
the Law on Copyright and Related Rights, Article 62. 3 of the Trademark Law, Article 61.3 of the Law 
on Protection of Design, Article 94.3 of the draft Patent Law, and Article 61.3 of the draft Law on 
Indications of Geographical Indications).  Appeal s of provisional measures did not stay the execution 
of a decision on provisional measures.  She confirme d that the Law on Litigation Proceedings and the 
Law on Enforcement Proceedings provided for the possibility of a review upon request of the 
defendant, including a right to be heard, as provi ded in Article 50.4 of the TRIPS Agreement. 
- Administrative procedures and remedies  
235. The representative of Montenegro said that administrative procedures and remedies were 
regulated by Montenegro's Law on General Administrative Procedure (RM OG No. 60/03).  The  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 81 
 
 
 authorities competent to take administrative action in  relation to infringement of intellectual property 
rights were the Union Intellectual Property O ffice (MIPO once operational) and Montenegro's 
Customs Administration.  Montenegro's legislati on did not provide for a second-level administrative 
authority to review MIPO decisions.  However, al l MIPO decisions could be appealed before the 
Administrative Court of Montenegro.  She added that first instance decisions of the Customs 
Administration could be contested before the Ministry of Finance.  Ministry of Finance decisions 
were subject to review by the Administrative Court of Montenegro.  
236. Asked to describe the circumstances in which administrative procedures and remedies were 
applicable rather than civil procedures and reme dies, the representative of Montenegro said that 
administrative procedures were applied to matters re lated to registration of intellectual property rights 
and border measures.   
- Special border measures  
237. The representative of Montenegro said that pursuant to the Regulation on Actions of the 
Customs Authority Applicable to Goods Suspect ed to be Infringing Goods (RM OG No. 25/05), 
customs authorities could, upon request of the right holder, suspend customs clearance of imported 
and exported goods and goods in transit suspected of violating intellectual property rights (Article 3).  
Requests for suspension of customs clearance had to be filed with the Customs Administration 
Headquarters, and be accompanied by a description of the goods sufficient to allow the customs 
authorities to recognize the goods, and a proof of the right holder's exclusive rights (Article 4).  
Requests for suspension of customs clearance were subject to a €100 fee pursuant to the Decree on the 
Types, Amounts, and Manner of Payment of F ee for Services Rendered by Customs Authorities 
(RM OG No. 66/06).  The applicant could be request ed to provide a security equal to any costs 
incurred by the suspension of the goods (Article 8 of the Regulation).  Right holders had the right to inspect the suspected goods, provided such inspec tion took place in the customs premises and under 
customs supervision (Article 9).  In case of evidence of a prima facie  infringement, customs 
authorities could take ex officio action (Article 11).  Customs author ities were required to inform the 
importer, exporter or owner of the goods, and th e right holder or his/her representative of the 
measures taken without delay (Ar ticles 9.2 and 11.2).  Decisions on the merit of the case were 
referred to court.  She confirmed that the mandate of customs authorities to take ex officio  action 
applied to all IP rights and to goods in transit and that the right holder was required to provide adequate evidence for prima facie  infringement to satisfy the competent authorities in an application 
for the suspension of release of infringing goods as re quired in Article 52 of the TRIPS Agreement.  
Article 13 provided for compensation of the importe r or the owner in case of wrongful detention of WT/ACC/SPEC/CGR/4/Rev.2 
Page 82  
 
 the goods and Articles 14 and 15 for the destructi on and disposal of infringing goods outside the 
normal channels of commerce.  In response to a question, she added that the re-exportation of 
infringing goods in an unaltered state was not rega rded as disposal outside the normal channels of 
commerce under Article 14.2.  She confirmed that  all actions by customs authorities could be 
appealed, including ex officio  actions.   
238. Asked whether the importer had any rights in the process leading to a Customs 
Administration's decision, the representative of Mont enegro said that applications for suspension of 
customs clearance were submitted prior to importati on, while the actual importers of the suspected 
products were not known.  However,  importers were informed of the suspension decision immediately 
and were entitled to submit evidence to support their claim.   
239. Questioned about the personal use exemption fore seen in Article 1.2.3, the representative of 
Montenegro explained that this exemption was li mited to one copy only.  The Regulation on Actions 
of the Customs Authority Applicable to Goods Su spected to be Infringing Goods applied whenever 
more than one identical copy of a suspected product was imported, exported, or imported in transit.   
240. Asked whether Montenegro's legislation limite d the suspension time period to ten working 
days with a possible extension by another ten wo rking days in accordance with Article 55 of the 
TRIPS Agreement, the representative of Montenegro  said that the Regulation had been amended in 
March 2008 to be brought into conformity with  Article 55 of the TRIPS Agreement (OG MNE 
No. 16/08).   
- Criminal procedures  
241. The representative of Montenegro said that infri ngement of intellectual property rights could 
be liable to criminal prosecution pursuant to the Criminal Code, as amended on 3 August 2006 (RM OG No. 47/06), and Articles 19 to 26 of the IPR Enforcement Law.  Criminal procedures were 
administered by court.  The State prosecutor had the authority to take ex officio  action.  Penalties 
included fines ranging from €1,000 to  €30,000 and prison sentences of up to eight years.  The type 
and level of penalty, including imprisonment, were  determined by the court taking into account the 
specificities of each case.  She confirmed that the Criminal Code provided fo r the confiscation, or 
confiscation and destruction of infringing goods, an d materials and implements used to commit the 
offence, regardless of the level use.  Thus, the le vel of protection provided by Montenegro's Criminal 
Code exceeded the requirement of Article 61 of the TRIPS Agreement.    WT/ACC/SPEC/CGR/4/Rev.2 
 Page 83 
 
 
 242. In response to a question, she noted that Mont enegro's legislation did not prescribe the level 
of infringing activity required to initiate criminal  prosecution.  The level of infringement was, 
however, relevant for determining the sentence.  She noted that Montenegro's Penal Code clearly 
identified the types of intellectual property right s infringement and related criminal procedures and 
penalties.  In her view, Montenegro's legisla tion was in compliance with Article 61 of the 
TRIPS Agreement. 
VI. POLICIES AFFECTING TRADE IN SERVICES  
243. The representative of Montenegro said that Mont enegro had traditionally been a net exporter 
of services.  Exports and imports of services had almost doubled in recent years, mainly due to the substantial increase in tourism services.  She pr ovided information based on the services sectoral 
classification list in document WT/ACC/CGR/3/Add.1, Annex 7, and information on policy measures 
affecting trade in services in the format of document WT/ACC/5 in document WT/ACC/CGR/4 and 
Corrigendum 1.   
244. Montenegro's legislation did not impose any rest rictions on capital transactions affecting the 
supply of services, the total value of service transactions or assets, the total number of service 
operations, the total quantity of service output, or th e total number of natural persons that could be 
employed in a particular service sector.  The number of service suppliers was not subject to any limitation, but foreign persons were not allowed to  establish service companies involved in trade in 
weapons or located in some restricted areas (e .g. "frontier strip" and national parks).  Some 
restrictions or requirements also existed regarding th e type of legal entities that could be established.  
Commercial banks and companies engaged in broke rage, dealing, investment management and 
underwriting, for example, had to be incorporated as joint-stock companies.   
245. She added that some service sectors, including banking, insurance, medical, educational and 
transport services, were subject to licensing.  She provided a list of State and non-State bodies 
responsible for issuing service licenses in Tables 9 (a ) and 9 (b).  Licensing of charter road transport 
was subject to reciprocity.  In addition, foreign persons employed in a branch office or a business entity subject to a business cooperation agreement; foreign persons engaged in educational activities 
on national and ethnic minorities' languages; sport professionals; and husbands, wives and children of 
a foreign person with a permanent residence permit were delivered work permits in accordance with 
international agreements.   
246. Responding to specific requests of a Member, the representative of Montenegro confirmed 
that for the services included in Montenegro's Schedule of Specific Commitments Montenegro would WT/ACC/SPEC/CGR/4/Rev.2 
Page 84  
 
 ensure that its licensing procedures and conditions would not act as independent barriers to market 
access.  She further confirmed, in particular th at, from the date of accession, (i) Montenegro's 
licensing procedures and conditions would be publishe d prior to becoming effective; (ii) Montenegro 
would specify reasonable timeframes for the review and decision by all relevant authorities in Montenegro's licensing procedures and conditions; (iii) applicants would be able to request licensing 
without individual invitation; (iv) any fees char ged, which were not deemed to include fees 
determined through auction or a tendering process,  would be commensurate with the administrative 
cost of processing an application; (v) the competen t authorities of Montenegro would, after the receipt 
of an application, inform the applicant whethe r the application was considered complete under 
Montenegro's domestic laws and regulations and in the case of incomplete applications, would 
identify the additional information required to comple te the application and provide an opportunity to 
rectify deficiencies; (vi) decisions would be taken pr omptly on all applications; (vii) if an application 
was terminated or denied, the applicant would be in formed in writing and without delay of the reasons 
for such action.  The applicant would have the pos sibility to resubmit, at his/her discretion, a new 
application addressing the reasons for termination or denial; and (viii) in case examinations were held 
for the licensing of professionals, such examinations would be scheduled at reasonable intervals.  The 
Working Party took note of these commitments. 
247. In addition, the representative of Montenegro confirmed that, from the date of accession, 
Montenegro would (i) publish in advance any regula tions or other implementing measures of general 
application, pertaining to or affecting trade in ser vices, that it proposed to adopt, the purpose of the 
regulation or other implementing measure, the eff ective date of these measures, and the scope of 
services or activities affected; (ii) provide inte rested persons and other Members a reasonable 
opportunity to comment on such proposed regulation or other implementing measure; and (iii) allow 
reasonable time between publication of the final regulation or other impl ementing measure and its 
effective date.  The Working Part y took note of these commitments. 
248. In addition, the representative of Monteneg ro confirmed that, upon accession, Montenegro 
would publish a list of all organizations that were responsible for authorizing, approving or regulating 
service activities for each service sector, and would p ublish in the official journal, upon accession, all 
of its licensing procedures and conditions.  The Working Party took note of these commitments.  
249. The Government of Montenegro granted a numbe r of subsidies in the form of incentives for 
bus, air, rail or ship transport re lated to tourism; preferential interest rates for credits granted by 
commercial banks to the tourism sector; and partia l reimbursement of regist ration costs for private 
accommodation to stimulate the development of t ourism (Law on Tourism, RM OG Nos.  32/02,  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 85 
 
 
 41/02, 45/02, 38/03, 11/04, 31/05 and 13/07).  These subsidies were granted to both domestic 
providers and foreign providers registered at th e Central Register of the Commercial Court in 
accordance with the Law on Business Entities.  Some  tax exemptions and reductions were also 
granted under the Law on Environment to service providers for the use of clean technologies and recycling (RM OG Nos. 12/96, 55/00 and 80/05).  She added that the fees imposed on foreign producers of films and TV series without a M ontenegrin partner had been abolished on 
23 November 2006 (amendments to the Law on Cine matography RM OG Nos. 45/93 and 27/94).   
250. Legal services were regulated by the new Montenegrin Law on Legal Services 
(RM OG No. 79/06) and the Tariff on Fees and Compen sation of Costs for Performance of Attorney's 
Activities (RM OG No.18/02).  Pursuant to the new Law, which had entered into force in 
January 2007, foreign lawyers could freely provide  consultancy services on international law and 
third countries' law, but representation before admi nistrative and judicial tribunals was subject to 
reciprocity.   
251. The telecommunications sector was regulated by the Law on Electronic Communications 
(OG MNE No. 50/08), which had been adopted by the Parliament on 19 August 2008.  An Agency for 
Telecommunications and Postal Services had been  established in March 2001 as an independent 
regulatory Body.  The Agency was responsible for promoting competition and access to networks, 
issuing licenses to operators, and regulating ta riffs.  Telekom Montenegro was the leading 
telecommunications operator in Montenegro.  Telekom Montenegro had been created in 
December 1998 following the sp lit of the State-owned PTT M ontenegro into postal and 
telecommunication services.  Telekom Montenegro ha d been fully privatized in March 2005, when 
the State had sold all its remaining shares  (51.1 per cent) to Matav (the Hungarian 
telecommunications company, owned by German Te lecom).  Telekom Montenegro had been granted 
a monopoly over fixed telecommunications until 31 December 2003.  All restrictions on foreign 
investment in this area had since then been elim inated.  Three companies, ProMonte, Monet, and 
MTel, provided mobile services in Montenegro.   
252. A new Law on Postal Services had been passed in July 2005 (RM OG No. 46/05).  Under the 
Law, the public postal operator Posta Montenegro ha d exclusivity over the collection, transportation 
and delivery of letters up to a certain weight and value; the collection, transportation and 
disbursement of money orders; and the collecti on, transportation and delivery of court mail and 
official letters related to administrative or judici al proceedings.  Other universal postal services could 
be provided by any domestic or foreign operator est ablished in Montenegro as a legal entity, duly 
licensed by the Agency for Telecommunications and Postal Services. WT/ACC/SPEC/CGR/4/Rev.2 
Page 86  
 
 253. Insurance services were regulated by the Law on Insurance (RM OG Nos. 78/06 and 19/07).  
The Law provided for the establishment of a new Insurance Supervision Agency as an independent 
regulatory Body.  The Council of the Agency had b een appointed on 3 July 2007, and the Parliament 
had approved the Agency's statute, financial pl an and programme in December 2007.  The Agency 
had started operating but would only be fully capable of performing its functions by the end of 2011.  
All financial institutions in Montenegro, including in surance companies, had to  be incorporated as 
joint-stock companies.  Foreign insurance compan ies were not subject to any restrictions.  She 
confirmed that all insurance companies could rein sure abroad.  She added that a new Law on Banks 
had been enacted (OG MNE No. 17/08).  Under the new law, foreign banks were allowed to set up 
subsidiaries, branch offices or representative offi ces in Montenegro.  Representative offices could 
only perform preparatory activities, such as market research; they could not provide banking services.  
The establishment of banks and representative offices was subject to the approval of the Central Bank 
of Montenegro.  She confirmed that foreign and domestic banks were subject to the same requirements.  Asked whether Montenegro in tended to explicitly authorize branches and 
representative offices for foreign insurance compani es as it had done for banks, the representative of 
Montenegro noted that given the level of developm ent of the insurance market, a transitional period 
was necessary before further liberalization could be ca rried out.  Supervision, in particular, had to be 
strengthened.  A number of measures were planned in the lead up to 2011 before the Insurance 
Supervision Agency would become fully operationa l, including, the negotiation of memoranda on 
technical cooperation with other regulatory bodies in the region, intensive training of personnel, and 
the adoption of by-laws required for the implementation of the Law on Insurance. 
VII. TRANSPARENCY 
- Publication of information on trade 
254. The representative of Montenegro confirmed that  all laws and regulati ons were published in 
the Official Gazette of Montenegro immediately after their adoption.  No legal act of general 
applicability could enter into force before being pub lished in the Official Gazette.  As such, from the 
date of accession, all laws, regulations, decrees, j udicial decisions and administrative rulings of 
general application related to trade in goods, ser vices or TRIPS would be published promptly in a 
manner that fulfils WTO requirements, and no law or  regulation related to in ternational trade would 
become effective prior to such publication in the O fficial Journal.  She further confirmed that upon 
accession Montenegro would post the contents of current  and past editions of the Official Journal on 
the Government website and keep them current.  In  addition, all regulations and other normative acts 
or measures pertaining to or affecting trade in g oods, services, or TRIPS would be published promptly  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 87 
 
 
 in a single official source, and that no such regulation or other normative act or measure would 
become effective or be enforced prior to such pu blication.  She further confirmed that within two 
years of accession Montenegro would establish or desi gnate an official journal or website, published 
or updated on a regular basis and readily available to WTO Members, and individuals and enterprises 
thereof, dedicated to the publication of all regulat ions and other measures pertaining to or affecting 
trade in goods, services, and TRIPS prior to enact ment.  She further confirmed that Montenegro 
would provide a reasonable period,  i.e., no less than 30 days, for comment to the appropriate 
authorities before such measures are implemented, except for those regulations and other measures 
involving national emergency or security, or for which the publication would impede law 
enforcement.  The publication of regulations and ot her measures related to trade in goods, services or 
TRIPS would, where possible, include the effectiv e date of these measures and list the products and 
services affected by the particular measure, identified by appropriate tariff line and classification.   
The Working Party took no te of these commitments. 
- Notifications 
255. The representative of Montenegro said that, un less otherwise provided for in this Report, 
upon entry into force of the Protocol of A ccession, Montenegro would submit all the initial 
notifications required by any Agreement constituting part of the WTO Agreement.  Any regulations 
subsequently enacted by Montenegro which gave  effect to the laws enacted to implement 
any Agreement constituting part of the WTO Agreem ent would also conform to the requirements of 
that Agreement.  The Working Party took note of these commitments.  
VIII. TRADE AGREEMENTS  
256. The representative of Montenegro said that th e Republic of Montenegro was a party to a 
number of bilateral trade agreements on goods, servi ces, and avoidance of do uble taxation; bilateral 
investment promotion agreements; bilateral la bour-related agreements; and multilateral economic 
cooperation agreements.  She provided a list of these agreements in document 
WT/ACC/CGR/3/Add.1, Annex 8.  The State Union of Serbia and Montenegro had also signed and 
ratified eight bilateral free trade agreements (FTAs)  - seven with Montenegro's South-East European 
neighbours, i.e. Albania, Bosnia and Herze govina, Bulgaria, Croatia, FYROM, Moldova, and 
Romania, and one with the Russian Federation.  Upon Montenegro's independence, Montenegro's 
Parliament had adopted a resolution whereby all in ternational agreements signed by the State Union 
would continue to apply in Montenegro.  The agr eements with Bulgaria and Romania had since then 
been abolished, following Bulgaria's and Romania' s accession to the EU.  She noted that Montenegro WT/ACC/SPEC/CGR/4/Rev.2 
Page 88  
 
 was not a member of any customs union.  In respon se to a question, she added that Montenegro did 
not grant GSP treatment to any of its trading partners.   
257. The negotiation of bilateral free trade agreem ents among South-East European countries was 
based on the Memorandum of Understanding on Tr ade Liberalization and Facilitation signed on 
27 June 2001 by the ministers of foreign trade of Albania, Bosnia and Her zegovina, Bulgaria, Croatia, 
FYROM, Moldova, Romania, and Serbia and Monteneg ro under the auspices of the Stability Pact for 
South-East Europe.  The Memorandum spelled out the basic principles to be included in each FTA, 
including the elimination of export duties and taxes upon entry into force of the FTAs; the abolition of 
import duties and taxes for at least 90 per cent of th e value of trade between the contracting parties - 
elimination upon entry into force of the FTA for a majority of products and over a six-year period for the remaining goods covered by the FTA; the remo val of WTO-inconsistent quantitative restrictions 
- exemptions had to be selective and limited in time; the application of transparent and non-
discriminatory measures in the area of public proc urement, Government aid and State monopoly; the 
simplification of customs procedures; the harmonizati on of the methods for collecting statistical trade 
data; the harmonization of SPS measures with WTO a nd other relevant intern ational organizations' 
rules; greater cooperation on TBT issues; the harmon ization of local tax and banking legislation with 
EU regulations; the implementation of intellectual property rights in compliance with WTO standards; 
the liberalization of trade in services; and co mpliance of FTAs provisions on implementation of 
antidumping, countervailing, and safe guard measures with WTO rules.   A total of 28 bilateral free 
trade agreements had been negotiated, seven of which involved Montenegro .  All these agreements 
were based on WTO rules and principles.   
258. In accordance with the bilatera l free trade agreements with Albania, Bosnia and Herzegovina, 
Croatia, FYROM, and Moldova, Montenegro's trade in industrial goods with these countries had been 
fully liberalized on 1 January 2007.  Import duties on most agricultural products had been either 
eliminated or lowered, depending on the sensitivity of  the product.  Particularly sensitive agricultural 
products were subject to annual duty-free or low-dut y quotas.  Imports in excess of the agreed quotas 
were subject to normal customs duties.  She provi ded a detailed description of these agreements and 
information on trade with South-East European countries in document WT/ACC/CGR/3, pages 104 
to 112.  She added that an Agreement on Am endment and Accession to the Central Free Trade 
Agreement (CEFTA 2006) had been signed on 19 December 2006 by Albania, Bosnia and 
Herzegovina, Bulgaria, Croatia, FYROM, Moldova,  Montenegro, Romania, Serbia, and UNMIK.  
CEFTA 2006 covered a number of areas not dealt w ith in the bilateral free trade agreements, 
including services, intellectual property, government  procurement and investment.  CEFTA 2006 had  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 89 
 
 
 entered into force on 26 July 2007 in Alba nia, UNMIK/Kosovo, Montenegro, Macedonia, and 
Moldova; in August in Croatia; in Se ptember in Serbia; and in Novemb er in Bosnia and Herzegovina.  
259. The bilateral free trade Agreement with th e Russian Federation had been signed on 
28 August 2000 and ratified on 9 May 2001.  The Agre ement provided for the gradual elimination of 
import duties, charges, and other equivalent me asures over a five-year period - however, as of 
January 2008, trade with the Russian Federation had not been fully liberalized .  The Agreement also 
included provisions on the non-discriminatory applicati on of SPS measures; the application of rules of 
origin in accordance with the legislation of the importing country; the re-exportation of goods originating in the customs territory of the othe r contacting party - non-sanctioned re-exportation was 
prohibited; the implementation of anti-dumping, c ountervailing and safeguard measures in accordance 
with WTO rules; the protection of intellectual pr operty rights in accordance with the conventions to 
which both parties were signatories; transfers and payments - which should be free from any 
restriction; and special procedures for applying protective measures and measures for balance-of-
payment purposes for limited duration.   
260. She added that a Stabilization and Associati on Agreement (SAA) with the European Union 
had been initialled in March 2007.  The Agreemen t had been signed in October 2007 and the Law on 
the Ratification of the Stabilization and Associa tion Agreement  between the European Communities 
and their Member Countries and the Republic of Montenegro had entered into force on 9 November 2007 (OG MNE No.07/07-1 of 2 Novemb er 2007).  The Interim Agreement had become 
effective in January 2008.   
261. The representative of Montenegro confirmed th at Montenegro would comply with all WTO 
provisions, including Article XXIV of GATT 1994 and Ar ticle V of the GATS, when participating in 
preferential trade agreements.  To this end, Monten egro would ensure that, from the date of accession, 
its preferential trade agreements complied with  the provisions of the WTO Agreement for 
notification, consultation and other requirements concerning free trade areas and customs unions.  She 
further confirmed that Montenegro would, upon acce ssion, submit notifications and copies of its Free 
Trade Areas and Custom Union Agreements to  the Committee on Regional Trade Agreements 
(CRTA).  She further confirmed that any legislatio n or regulations required to be altered under its 
trade agreements would remain consistent with th e provision of the WTO and would, in any case, be 
notified to the CRTA during its examination of th e same.  The Working Party took note of these 
commitments. WT/ACC/SPEC/CGR/4/Rev.2 
Page 90  
 
 CONCLUSIONS 
262. The Working Party took note of the explanations and statements of Montenegro concerning 
its foreign trade regime, as reflected in this Repor t.  The Working Party took note of the commitments 
given by Montenegro in relation to certain specifi c matters which are reproduced in paragraphs [31, 
33, 40, ,52, 55, 72, 77, 81, 87, 97, 108, 113, 117, 120, 126, 135, 146, 161, 168, 173, 176, 246, 247, 248, 254, 255, and 261] of this Report.  The Wo rking Party took note that these commitments had 
been incorporated in paragraph 2 of the draft Prot ocol of Accession of Montenegro to the WTO.   
263. Having carried out the examination of the foreign trade regime of Montenegro and in the light 
of the explanations, commitments and concessions  made by the representative of Montenegro, the 
Working Party reached the conclusion that Monten egro 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 Montenegro's Sche dule of Concessions and Commitments on Goods 
(document WT/ACC/CGR/../Add.1) and its Sche dule of Specific Commitments on Services 
(document WT/ACC/CGR/../Add.2) that are annexed to the draft Protocol.  It is proposed that these 
texts be adopted by the General Council when it adopts the Report.  When the Decision is adopted, 
the Protocol of Accession would be open for acceptance by Montenegro which would become a 
Member thirty days after it accepts the said Protocol .  The Working Party agreed, therefore, that it had 
completed its work concerning the negotiations fo r the accession of Montenegro to the Marrakesh 
Agreement Establishing the WTO. 
 
  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 91 
 
 
 ANNEX 1 
Laws, Regulations and Other Information Pr ovided to the Working Party by Montenegro  
- Economic Reform Agenda;  
- Law "On Foreign Current and Capita l Operations" (RM OG No. 45/05);  
- Law "On Foreign Investment" (RM OG No. 52/00); 
- Draft Law "On Property, Chapter XII, Re gulating the Rights of Foreign Persons"; 
- Decision "On Privatization Plan for 2008" (RM OG No. 17/08);  
- Law "On Abolishment of the Law 'On Social Price Control'" (RM OG No. 27/2006);  - Law "On Protection of Competition" (RM OG No. 69/05);  - Decision "On the Promulgation of the Cons titution of the Republic of Montenegro" of 
12 October 2004; 
- Decree "On the Proclamation of the Law On General Administrative Procedure" 
(RM OG No. 60/03) of 28 October 2003; 
- Decree "On Promulgation of the Law On Administrative Disputes" (OG RM No. 60/2003) of 
22  October 2003;  
- Law "On Foreign Trade" (RM OG No. 28/04); 
- Regulation "On Implementation of the Foreign Trade Law" (RM OG No. 52/04); - Law "On Tobacco" (RM OG No. 80/2004 and No. 5/05); - Law "On Customs Tariff" applied from January 2006;  - Draft Law on Customs Tariff - Applied Ta riff Rates of the Republic of Montenegro 
(HS 2002);  
- Applied Tariff Rates of the Republic of Montenegro (HS 1996);  
- Customs Law, including amendments (RM OG Nos. 7/02, 38/02, 72/02, 21/03, 31/03, 29/05 
and 66/06); 
- Decree "On Amendments to the Decree 'On Implementation of the Customs Law'" 
(RM OG No. 81/06);  
- Decree "On Implementation of the Cust oms Law" (RM OG Nos. 15/03 and 81/06). 
- Decree "On Implementation of the Customs La w, Rules of Origin and Customs Valuation 
(RM OG No. 15/03);  
- Decree "On the Types, Amounts and Manner of Payment of Fee for Services Rendered by 
Customs Authorities" (RM OG No. 4/07); 
- Law "On Excise Tax" (RM OG Nos. 52/01 and 12/02); 
- Law "On Excise Taxes", Provisions on Tobacco Products; 
- Law "On Value Added Tax" (RM OG Nos. 65/01, 12/02, 38/02, 72/02 and 21/03);  - Decision "On Control List for Import and Export of Goods" (RM OG No. 44/04);  - Decision "On Control List for Export, Import and Transit of Goods" (RM OG No. 45/07); - Law "On Foreign Trade in Weapons, Military Equipment and Dual-use Goods" 
(SM OG No. 7/05); 
- Decision "On Control List for Export, import and Transit of Goods" of 16 March 2006;  
- Customs Law, Chapter Three, "Value of Goods for Customs Purposes"; - Decree "On Implementation of Customs Law", Part 3, "Origin of Goods"; and Part 4, 
"Customs Valuation of Goods"; 
- Non-Preferential Origin of Goods; Part 3 of Rules on Origin of Goods (RM OG No. 15/03);  
- List of Technical Regulations on Quality of  Food and Industrial Pr oducts Applied in the 
Republic of Montenegro; 
- Law "On Technical Requirements and Conformity Assessment of Products with Prescribed 
Requirements"; 
- Law "On Standardization"; 
- Strategy for Improving the Quality Infrastructure in Montenegro; 
- "Food Safety Law" (RM OG No. 14/07); - Law "On Veterinary" (RM OG No. 11/04);  WT/ACC/SPEC/CGR/4/Rev.2 
Page 92  
 
 - Edict "On Promulgation of the Veterinary Law" (RM OG No. 11/04);  
- Law "On Plant Health Protection";  - Draft Law "On Plant Protection Product" of December 2007; - Decree No. 01-961/2 "On Promulgation of  Fertilizer Law", dated 2 August 2007 
(RM OG No. 48/2007); 
- Criteria for Establishing of Health Condition of the Crops and Facilities, Seeds, Nursery 
Plants and Planting Material; 
- Law "On Seed Material of Agricultura l Plants, promulgated on 20 April 2006" 
(RM OG No. 28/2006); 
- Law "On Promulgation of the Law 'On Planti ng Material, promulgated on 20 April 2006'" 
(RM OG No. 28/2006); 
- Decision "On Establishing the Accreditation Body of Montenegro" (RM OG No. 21/07); - Draft Regulation "On the Procedure for Notification of Sanitary and Phytosanitary 
Measures"; 
- Law "On Genetically Modified Orga nisms and related regulations";  
- Ordinance "On Undertaking the Measures to Pr event Introduction of the Animal Infectious 
Disease Bovine Spongiform Encephalopathy (BSE) in the Republic of Montenegro" (RM OG No. 23/05);  
- Decision "On the Level of Compensation for Vete rinary-Sanitary Control in the Trade Across 
the Border of the Republic of Montenegro" (RM OG No. 50/2005) of 7 July 2005;  
- Law "On Free Zone" (RM OG No. 42/04);   
- Law "On Free Zones" (RM OG No. 11/07); 
- Law on Copyright and Related Rights of 1 Ja nuary 2005 (Official Gazette No. 61 of Serbia 
and Montenegro of 24 December 2004); 
- Law "On Cinematography";  - Law on Geographical Indications for the Fede ral Republic of Yugoslavia of 1 April 1995  
(Official Gazette No. 15 of the Federal Republic of Yugoslavia of 24 March 1995); 
- The Law "On Indications of Geographical Orig in" (OG of Serbia and Montenegro No. 20/06); 
- Law on Trademarks of 1 January 2005 (Official Gazette No. 61 of Serbia and Montenegro of 
24 December 2004);  
- Law on Patents of 10 July 2004 (Official G azette No. 15 of Serbia and Montenegro of 
2 July 2004); 
- Law on Legal Protection of Design of 1 January 2005 (Official Gazette No. 61 of Serbia and 
Montenegro of 24 December 2004); 
- Law on Protection of Topographies of Integrated Circuits of 1 January 2005 (Official Gazette 
No. 61 of Serbia and Montenegro of 24 December 2004); 
- Draft Plant Variety Protection Law (dated January 2006);  
- Draft Law "On Plant Variety Protection";  
- Law "On Protection of Undisclosed Information" (RM OG No. 16/07); - Law "On Optical Discs";  - Law "On Enforcement of the Legislation that  Regulates Protection of Intellectual Property 
Rights" (RM OG No. 45/05); 
- Regulation "On Providing the Application of Intellectual Property Rights", dated 
20 September 2007 (RM OG No. 61/07); 
- Regulation "On Actions of the Customs Authority Applicable to Goods Suspected of 
Infringement of Intellectual Property Rights" (RM OG No. 25/05);  
- Penal Code of the Republic of Montenegro (Amendments Published in RM OG No. 47/06, on 
25 July 2006.  Effective as of 3 August 2006);  
- Penal Code of the Republic of Montenegro (RM OG No. 47/06), Criminal Offences Against 
Intellectual Property Rights (Articles 233 - 238, 271); and 
- Law "On Banks", proposal of 7 November 2007. 
  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 93 
 
 
 ANNEX 2 
Table 3:  Administrative Fees and Charges  
Fees Level (€) 
Tariff No. 1:  
For claims, requests, petitions, proposals and other applications 5 
Tariff No. 22:  
For written decisions approving importing, exporting or transit of explosive substances and 
items, weapons and military equipment through the territory of the Republic, per ton of freight 20  
Tariff No. 51:  
For a veterinary sanitary certificate on th e health status of export consignments 5 
Tariff No. 56:  
For a written decision determining the veterinary-sanitary requirements for importing 
consignments of animals and products, raw materials and waste of animal origin 60 
For a written decision determining the veterinary -sanitary requirements for the transportation 
of consignments of animals and products, raw materials and waste of animal origin 90 
For a written decision determining the veterinary -sanitary requirements for temporary imports, 
exports or transport of animals intended for spor ts events, fairs and exhibitions (horses, dogs, 
cats, birds, fish and similar) 60 
Tariff No. 57:  
For the issuance of approval for temporary imports of animals for breeding purposes and 
seeds and other plant reproductive organs 15 
Tariff No.58:  
For a written decision approving the importation of seeds, seedlings and planting material and 
determining the health status and variety of seeds, seedlings and planting materials being 
imported. 60 
Tariff No. 60:  
For the issuance of phyto-certificates for export and re-export of plant consignments 50 
For certificates on phytosanitary safety of seedlings and planting material in internal 
circulation 50 
Tariff No. 62:  
For written decisions on authorizing a legal pers on for testing and determining the quality of 
seeds being exported and issuing certificates on the quality of seeds and planting material 50 
For written decisions on the prohibition of imports of seeds and planting material 70 
Tariff No. 65:  
For the issuance of export certificates for pr oducts obtained through organic production 
methods 20 
Tariff No. 67:  
For written decisions on the issuance of license s for placing in circulation plant-protection 
means (pesticides) and plant-nourishment means (fertilizers) 70 
For written decisions on the renewal (revision) of licenses for placing in circulation plant-
protection means (pesticides) and plant-nourishment means (fertilizers) 70 
Tariff No. 68:  
For written decisions on approving the imports of plant-protection means (pesticides) and 
imports of active substances and concentrates for the production of pesticide end-products and 
plant-nourishment means (fertilizers) 70 
For certificates that plant-protection means (pestic ides) are not being produced in the Republic 20 
Tariff No. 69:  
For written decisions determining the fulfilment of  requirements by legal persons to place in 
circulation plant-protection means (pesticides) and plant-nourishment means (fertilizers) on 
wholesale and retail level 100 
Tariff No. 75:  
For written decisions approving placing in circulation of genetically-modified organisms and 
products derived from genetically modified organisms 50 WT/ACC/SPEC/CGR/4/Rev.2 
Page 94  
 
 Fees Level (€) 
For written decisions determining the duration of the contained use, production and circulation 
of genetically modified organisms and products derived from genetically modified organisms 40 
Tariff No. 77:  
For licence for imports, exports or transit of e ndangered and protected species of wild flora 
and fauna, their developing forms and parts 100 
For licence for imports, exports or transit of genetic resources of wild flora and fauna, bio-
technology and genetically-modified organisms 100 
Tariff No. 78:  
For written decisions on the issuance of appr oval to place in circulation medicine and 
auxiliary therapeutic and medicinal media for use in medicine and dentistry 50 
For written decisions on the renewal of an approval for placing in circulation medicine and 
auxiliary therapeutic and medicinal media for use in medicine and dentistry 30 
Tariff No. 79:  
For permit approving the imports or exports of medicines, auxiliary therapeutic and medicinal 
substances, healing substances and mixtures of healing substances (semi-products) for the production of finished medicines, auxiliary therapeutic and medicinal media, for use in 
medicine and dentistry 30 
For certificates that medicines and auxiliary therapeutic media are not produced in the 
Republic 10 
For certificates that specific h ealth-care equipment, appliances and instruments, as well as 
appropriate spare parts and operating supp lies, are not produced in the Republic 10 
Tariff No. 80:  
For written decisions determining that enterpri ses and other legal and natural persons may 
engage in the production or circulation of medicines and auxiliary therapeutic medical media 
for use in medicine and dentistry 100 
Tariff No. 82:  
For written decisions determining legal persons and entrepreneurs for the production and 
circulation of poisons, or legal persons for performing control of poisons 170 
Tariff No. 83:  
For an application for approval to place in circulation poisons for public hygiene use 40 
Tariff No. 84:  
For written decisions approving the imports, exports or transit of poisonous substances 
through the territory of the Republic 100 
Tariff No. 85:  
For licence to import substances which harm the ozone layer 150 
For written decisions approving the transportation of radioactive substances across the borders 
of the Republic 500 
For approval to foreign natural or legal person  for the transit through the territory of the 
Republic of goods having properties of dangerous substances 20 per 
ton 
Tariff No. 86:  
For approvals for the production or circulation of narcotics 150 
For licence for importation or exportation of narcotics 130 
For written decisions determining legal persons that may engage in the production or 
circulation of narcotics 150 
Tariff No. 87:  
For written decisions determining legal persons and entrepreneurs that may produce, engage 
in circulation or use sources of ionizing radiation 100 
Tariff No. 103:  
For a request for the inspection of a consignment (of food or Articles of general use) for the 
purpose of establishing health safety of goods being imported 5 
For written decisions confirming that the consignm ent referred to in th e preceding paragraph, 
with respect to health safety, conforms to the requirements prescribed in the Republic for such 
food products or products of general use 10  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 95 
 
 
 Fees Level (€) 
Tariff No. 104:  
For a request for the issuance of a certificate on the quality of agricultural and food products 
being imported, or exported 5 
For written decisions establishing the quality of the products referred to in the preceding 
paragraph 50 
Tariff No. 105:  
For licenses for exporting goods 30 
For licenses for importing goods 60 
For written decisions allocating quota for the exports of goods 25 
For written decisions allocating quota for the imports of goods 50 
Tariff No. 106:  
For approval of import-export customs clearance of goods wher e the goods do not cross the 
customs line 75 
For approval of compensation operations with foreign partners 75 
For approval of agency oper ations in foreign trade 90 
Tariff No. 108:  
For a customs document used for the temporary accommodation of goods 5 
Tariff No. 109:  
For written decisions (approvals) issued by the customs authorities in an administrative 
procedure:  
For written decisions (approvals) approving the opening or use of a customs warehouse 50 
For written decisions (approvals) approving ac tive or passive re-processing or processing 
procedure under customs supervision 30 
For written decisions (approvals) approving tem porary imports with exemption in part from 
the payment of customs duties 20 
For written decisions (approvals) approving tem porary imports with full exemption from the 
payment of customs duties 10 
For written decisions (approvals) in connection with  requests for the alte ration of data in the 
Uniform Customs Declaration (JCI) on which the calculation of customs debt is based 30 
For written decisions (approvals) in connection with requests for the exemption from the 
payment of customs duties 10 
For other written decisions (approvals) issued by the customs authorities in an administrative 
procedure 10 
For written decisions issued by the customs authorities in summary procedure:  
For written decisions (approvals) on the place ment of temporarily imported navigational 
vessels under customs supervision 10 
For other written decisions (approvals) issued by the customs authorities in summary 
procedure 6 
Tariff No. 110:  
For a Uniform Customs Declara tion when used in customs procedures, as well as for the 
calculation of customs debt in passenger traffic 6 
Tariff No. 111:  
For the procedure under the Uniform Customs Declaration in cases when calculation and 
collection of customs debt are performed:  
(1)  up to 100 kg 5 
(2)  from 100 kg to 10,000 kg 2 
(3)  for every 1,000 kg beyond 10,000 kg 1 
Goods whose quantity cannot be expressed in kil ograms shall be subject to the payment of fee 
per unit of measurement 1 
Tariff No. 112:  
For certificates on the customs status of goods and certificates on the identity of goods 15 
For the mandatory information on the classification of goods in the Customs Tariff 
nomenclature 15 
For the mandatory information on the origin of the goods 15 WT/ACC/SPEC/CGR/4/Rev.2 
Page 96  
 
 Fees Level (€) 
Tariff No. 113:  
For the issuance of certificates on direct cons ignments, €1 and €2 goods trading certificates, 
FORM-A certificates on the or igin of goods and other certificates on the origin of goods 15 
Tariff No. 114:  
For written decisions (approvals) approving th e commencement of operation of free economic 
zones and warehouses 100 
For written decisions (approvals) approving the form and content of records kept in free 
economic zones and warehouses 30 
Tariff No. 115:  
For cancelling an ATA carnet (regulation fee) 50 
Tariff No.116:  
For the issuance of a certificat e confirming that a motor vehicle fulfils technical requirements 
for transporting goods on the basis of a TIR carnet 50 
Tariff No. 117  
For appeals against written decisions issued by customs offices in an administrative procedure 
lodged by legal and natural persons 6 
  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 97 
 
 
 Table 4:  Products Subject to Excise Tax  
Tariff Code Description Amount of Excise Tax (rate) 
2402 20 10 00 
2402 20 90 00 
2402 90 00 00 Cigarettes - Specific 1.00€ / 1000 
pcs; and 
- Proportional 26% of their 
retail price. 
2402 10 00 00 2402 90 00 00 Cigars and cigarillos 10.00€/kg. 
2403 10 10 00 
2403 10 90 00 Finely chopped tobacco 20.00€/kg. 
2403 10 90 00 Smoking tobacco 15.00€/kg. 
2203 
2206 00 39 00 2206 00 59 00 
2206 00 89 00 Beer 1.90€ per alcoholic content by 
volume per hectoliter of beer. 
2204 21 2204 29 
2205 10 10 00 
2205 90 10 00 Table wines: 
1. With an alcoholic content 
exceeding 1.2% vol but not 
exceeding 15% vol provided the quantity of alcohol contained in 
the final product is completely of 
fermented origin; and 
2. With an alcoholic content 
exceeding 15% vol but not 
exceeding 18% vol provided the quantity of alcohol contained in 
the final product is completely of 
fermented origin and not enriched. 0€ (zero) per hectoliter of table 
wine. 
2204 10 
2205 Sparkling wines: 
1. In bottles with ‘mushroom' 
stoppers imported or held in place under pressure of carbon dioxide 
of 3 or more bars; and 
2. With an alcoholic content 
exceeding 1.2% vol but not 
exceeding 15% vol provided the 
quantity of alcohol contained in 
the final product is completely of 
fermented origin. 35€ per hectoliter of sparkling 
wine. 
2204 
2205 
2206 Other fermented beverages, other than beer 
and wine: 
1. With an alcoholic content 
exceeding 1.2% vol but not exceeding 10%; and 
2. With an alcoholic content 
exceeding 10% vol but not exceeding 15% vol provided the 
alcohol contained in the final 
product is completely of fermented origin. 40€ per hectoliter of other 
fermented beverages. WT/ACC/SPEC/CGR/4/Rev.2 
Page 98  
 
 Tariff Code Description Amount of Excise Tax (rate) 
2204 21 95 00 
2204 21 96 00 2204 21 98 00 
2204 29 95 00 
2204 29 96 00 
2204 29 98 00 
2205 10 90 00 2205 90 90 00 
2206 Medium alcoholic beverages: 
- With an alcoholic content 
exceeding 1.2% vol but not 
exceeding 22%. 70€ per hectoliter of medium 
alcoholic beverages. 
2207, 2208 2204, 2205, 2206 Ethyl alcohol: 
- With an alcoholic content 
exceeding 1.2% whether or not it 
is constituent part of the product 
having different tariff code; 
- With an alcoholic content 
exceeding 22%; and 
- Other alcoholic beverages 
containing ethyl alcohol whether 
or not in a solution, which are not 
covered by Articles 38 to 41 of this Law. 550€ per hectoliter of pure 
alcohol. 
2710 11 31 00 Aviation spirit 0.12€/kg. 
2710 11 41 00 
2710 11 45 00 
2710 11 49 00 Unleaded motor spirit 0.364€/l. 
2710 11 70 00 Spirit type jet fuel 0.12€/kg. 
2710 11 51 10 
2710 11 51 90 
2710 11 59 00 Other motor spirits 0.364€/l. 
2710 19 21 00 Kerosene for motors 0.12€/kg. 
2710 19 21 00 Kerosene type jet fuel 0.12€/kg. 
2710 19 25 00 Other kerosenes 0.12€/kg. 
2710 19 21 00 Kerosene type jet fuel used as heating fuel  0.069€/k.g 
2710 19 41 10 
2710 19 45 10 
2710 19 49 10 Diesel fuel 0.27€/l. 
2710 19 41 10 
2710 19 45 10 2710 19 49 10 Diesel fuel used as heating fuel 0.12€/l. 
2710 19 49 20 Fuel for ships 0.27€/l. 
2710 19 49 90 Other oils 0.12€/l. 
2710 19 61 00 Oil of low sulphur content for metallurgy 0.023€/kg. 
2710 19 61 00 
2710 19 63 00 
2710 19 65 00 2710 19 69 00 Other fuel oils 0.023€/kg. 
2711 19 00 00 Petroleum gases: 
- Propane and butane mixture. 0.069€/kg. 
2711 19 00 00 Other petroleum gases 0.069€/kg. 
  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 99 
 
 
 Table 6:  Imports Prohibited According to the Order on Ban of Import and Transit of Certain Plant 
Species and Determination of Quarantine Surv eillance for Certain Plant Species Imported for 
Growing Purposes and List of Plants  Subject to Quarantine Surveillance  
I.  Prohibited Imports and Transit for Phytosanitary Reasons  
 
Item Type of plant Object of prohibition 
1. Plants from the genus Abies, Picea, 
Pinus Pseudotsuga, Tsuga and Larix originating from France, Spain and non-
European countries. The ban pertains to import of the plants and parts for 
propagation of these plants, except seeds and samples of graft-twigs and pollen originating from non-
contaminated areas, and imported by scientific 
institutions dealing in selection, introduction of new species, varieties, lines and hybrids or plant protection. 
2. Plants from the genus Castanea and 
Quercus from all countries and genus 
Ulmus originating from the United States of America. The ban pertains to import of the plants as well as parts 
for propagation of these pl ants, except the seed of 
Quercus and Ulmus and samples of the seed Castanea originating in non-contaminated areas and imported by 
scientific institutions dealing in selection, introduction 
of new species, varieties, lines and hybrids or plant 
protection. 
3. Plants form the genus Juniperus 
originating from the countries of Asia and North America. The ban pertains to the import and transit of plants as 
well as parts for propagation of such plants, except the seeds. 
4. Plants from the family Rosaceae (genus 
Chaenomeles, Cydonia, Crataegus, 
Malus, Photinia, Prunus, Pyrus and Rosa) originating from the countries of 
Asia and North America. The ban pertains to import and transit of plants as well 
as parts for propagation of such plants, except the seeds 
and plants in the stage of dormancy without leaves and 
fruit (import is permitted in the stage of dormancy and 
quarantine surveillance is applied). 
5. Plants from the genus Populus 
originating from France, Spain and non-European countries and the genus 
Platanus originating from the USA, 
France, Italy, Spain, Armenia and other countries where the quarantine harmful 
organism Ceratocystis fimbirata f. sp. 
platani had been found. The ban pertains to import of plants as well as 
propagation parts of the respective plants, except the seeds and import of plant samples originating from non-
contaminated areas, imported by scientific institutions 
dealing in introduction of new species, varieties, lines and hybrids. 
6. Potato (Solanum tuberosum and 
Solanum spp.) originating from Mexico 
and countries of Central and South 
America. The ban pertains to import of potato for seed and 
consumption, including the wild or semi-cultivated 
clones, in particular tuber, plants with roots and parts of 
plants, except the real seed and cultures of tissues and 
samples originating form non-contaminated areas, and 
imported by scientific institutions dealing in introduction of new species, varieties, lines and hybrids. 
7. Coniferous wood from non-European 
countries with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in 
percentage of dry matter (designation K.D. "Kilndried" etc.) 
8. Oak wood genus Quercus originating 
from the USA, Russian Federation and 
Romania and chestnut wood genus Castenea originating from all countries, 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture expressed in 
percentage of dry matter. 
9. Wood from the genus Populus, Ulmus, 
Zelkova, Fraxinus and Tillia americana originating from non-European countries 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in percentage of dry matter. WT/ACC/SPEC/CGR/4/Rev.2 
Page 100  
 
 Item Type of plant Object of prohibition 
10. Logs and timber of the wood genus 
Platanus from the USA, France, Italy, Spain, Armenia and other countries 
where Ceratosystis fimbriata f. sp. 
Platani was determined. The ban pertains to import of logs and timber. 
11. Wood bark under ordinal numbers 7, 8, 9 
and 10. The ban pertains to import of wood bark if in the 
country of origin no disinsection and disinfection by 
fumigation or fermentation applying the prescribed method was applied. 
12. Corn stalks and sorghum straw if 
originating from the countries of Africa. The ban pertains to import and transit of corn stalks and 
sorghum straw. 
13. Soil, compost and substratum mixed with 
soil or compost, with plants or without plants, originating from the non-
European countries. The ban pertains to import of soil, compost and mixed 
substratum for which no disinfection and disinsection has been performed. 
14. Plants from the genus Fragaria 
originating from non-European countries. The ban pertains to the import of plants, except for 
seeds and fruits. 
 
II. Plants Subject to Quarantine Surveillance  
 
Quarantine surveillance is prescr ibed for plants imported for propagation purposes as follows: 
 1. Graft-twigs and pollen of the genus Abies, Picea, Pinus, Pseudotsuga, Tsuga and Larix and 
samples of the plant seed of genus Castanea a nd Quercus if the import is restricted under 
Ordinal No. 1 and 2 of Exhibit A12.3; 
2. The genus Abies, Picea, Pinus, Pseudotsuga, Ts uga and Larix originating from non-European 
countries; 
3. The genus Populus and Platanus if the import is restricted under the ordinal No. 5 of 
Exhibit A12.3; and 
4. Seed potato samples (Solanum spp.) if the import is restricted under the ordinal No. 6 of 
Exhibit A12.3. 
 
Quarantine surveillance of plants refe rred to in items 2. and 3. hereof  pertains to the entire live plant 
and their parts for propagation, except the seeds.   WT/ACC/SPEC/CGR/4/Rev.2 
 Page 101 
 
 
 Table 9 (a) - State Bodies with a Regulatory Role in Service Activities  
Body Role 
Central Bank of Montenegro Commercial bank licensing; approval of securities issuance 
and sale of large blocks of commercial bank shares, approval 
of the auditor chosen by the commercial bank. 
Ministry of Education and Science Licensing authority for secondary schools and universities. 
Ministry of Labour and Social We lfare Issuance of work permits. 
Ministry of Health Issuance of approval s for compliance with health standards, 
supervision, and inspection. 
Ministry for Tourism Licensing, classifi cation, supervision, and inspection of 
tourism related services. 
Ministry of Maritime Affairs and 
Transportation Licensing of inland transport related services. 
Ministry of Environmental Protection and 
Physical Planning Issuance of permits for fulfilment of environment standards, 
supervision and inspection. 
The Securities Commission Licensing for exchanges and other activities (brokerage, 
dealing, investment management, and underwriting and 
investment consultancy). 
Ministry of Finance Licensing fo r accounting and auditing services. 
Ministry of Agriculture, Forestry and Water 
Supply  Issuance of commercial fishing licenses, approval of hunting 
permits for foreign nationals. 
The Energy Regulatory Agency Issuance of licenses for the Generation, Transmission, 
Distribution, Supply and sale of electricity; for commercial 
transport; warehousing, distribution, sale and shipment of gas, oil and oil derivatives; for market operators, transmission and 
distributive networks. 
The Agency for Broadcasting Issu ance of broadcasting licenses. 
The Agency for Telecommunications Issuan ce of licenses for telecommunications. 
Insurance Supervision Agency Licensing for insurance services and supervision of the 
performance insurance business. 
 
Table 9 (b) - Non-State Bodies with a Regulatory Role in Service Activities  
Body Role 
The Bar Association Licensing (registration) of attorneys. 
The Association of Doctors Registration of medical doctors and dentists. 
The Association of Pharmacists Registration of pharmacists. 
The Association of Engineers Licensing of e ngineers and companies who are involved in 
layout and construction of facilities. 
The Association of Hunters  Registration, issuance of hunting permits for foreign citizens. 
The Veterinary Chamber  Licensing (registration) of veterinarians. 
 
 
_______________ 
 
  WT/ACC/SPEC/CGR/4/Rev.2 
Page 102  
 
 [Draft Decision] 
ACCESSION OF MONTENEGRO 
Decision of […] 
 The General Council, 
 Having regard to  paragraph two of Article XII and pa ragraph one of Article IX of the 
Marrakesh Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the 
Decision-Making Procedures under Articles IX and X II of the Marrakesh Agreement Establishing the 
World Trade Organization agreed by the General Council (WT/L/93); 
 Conducting  the functions of the Ministerial Confer ence in the interval between meetings 
pursuant to paragraph two of Article IV of the WTO Agreement; 
 Taking note  of the application of Montenegro for accession to the Marrakesh Agreement 
Establishing the World Trade Organization dated 23 December 2004; 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of Montenegro to the WTO Agreement a nd having prepared a Draft Protocol on the 
Accession of Montenegro; 
 Decides  as follows: 
 Montenegro may accede to the WTO Agreement on the terms and conditions set out in the 
Draft Protocol annexed to this Decision. 
_______________  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 103 
 
 
 DRAFT PROTOCOL 
ON THE ACCESSION OF MONTENEGRO 
Preamble  
 The World Trade Organization (hereinafter referr ed to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement Establishing the World Trade Organi zation (hereinafter referred to as the "WTO Agreement"), and 
Montenegro,  
 Taking note of the Report of the Working Pa rty on the Accession of Montenegro to the WTO 
Agreement reproduced in document WT/ACC/CGR/[…], dated […] (hereinafter referred to as the "Working Party Report"), 
 Having regard to the results of the negotiati ons on the accession of Montenegro to the WTO 
Agreement,  
 Agree as follows: 
PART I - GENERAL 
1. Upon entry into force of this Protocol pursu ant to paragraph 8, Montenegro 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 Montenegro accedes shall be the WTO Agreement, including 
the Explanatory Notes to that Agreement, as rectified, amended or otherwise modified by such legal instruments 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 para graph [...] of the Working Party 
Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provid ed 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 Agreement shall be 
implemented by Montenegro as if it had accepted that Agreement on the date of its entry into force. 
4. Montenegro may maintain a measure inconsistent with paragraph one of Article II of the GATS 
provided that such a measure was recorded in the list 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 Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitm ents annexed to the General Ag reement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to Montenegro.  
The staging of the concessions and commitments lis ted in the Schedules sh all be implemented as 
specified in the relevant parts of the respective Schedules. WT/ACC/SPEC/CGR/4/Rev.2 
Page 104  
 
 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 Schedules of Conc essions 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 acceptance, by  signature or otherwise, by Montenegro until […]. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Montenegro.  
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
Montenegro thereto pursuant to paragraph nine to each Member of the WTO and to Montenegro.   
 This Protocol shall be registered in accordance with the provisions of Ar ticle 102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single c opy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule anne xed hereto may specify that it its authentic in only 
one of these languages. 
_______________  WT/ACC/SPEC/CGR/4/Rev.2 
 Page 105 
 
 
 ANNEX I 
SCHEDULE […] - MONTENEGRO 
Authentic only in the … language. 
(Circulated in document WT/ACC/CGR/…/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the … language. 
(Circulated in document WT/ACC/CGR/…/Add.2) ] 
__________