RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CPV/4 
29 June 2005 
 (05-2801) 
Working Party on the 
Accession of Cape Verde  
 
 
 
 
ACCESSION OF CAPE VERDE 
 
Elements of a Draft Working Party Report  
 
  The attached Elements of a Draft Working Party Report on the Accession of Cape Verde to the WTO has been prepared by the Secretariat,  based on documentation being examined in the 
Working Party. 
 
 
_______________ 
 
 
 
  WT/ACC/SPEC/CPV/4 
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 TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................2  
- Monetary and Fiscal Policy..................................................................................................... .2 
- Foreign Exchange and Payments ............................................................................................3  
- Investment Regime.............................................................................................................. ......5  
- State Ownership and Privatization .........................................................................................6  
- Pricing Policies ............................................................................................................... ...........8  
- Competition Policy............................................................................................................. .....10  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................10  
- Powers of Executive, Legislative and Judicial Branches of Government ..........................10  
- Authority of Sub-Central Governments ...............................................................................13  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................14  
- Trading Rights ................................................................................................................. .......14  
A. IMPORT REGULATIONS....................................................................................................17  
- Ordinary cust oms duties ........................................................................................................ 17 
- Other duties and charges....................................................................................................... .18 
- Tariff rate quotas, tariff exemptions.....................................................................................19  
- Fees and charges for services rendered.................................................................................19  
- Application of internal taxes to imports ...............................................................................20  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............21  
- Customs valuation.............................................................................................................. .....24  
- Rules of origin ................................................................................................................ .........27  
- Other customs formalities ...................................................................................................... 28 
- Preshipment inspection ......................................................................................................... .29 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................29  
B. EXPORT REGULATION......................................................................................................30  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........30  
- Export rest rictions ............................................................................................................ ......30  
- Export subsidies ............................................................................................................... .......30  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................32  
- Industrial policy, including subsidies....................................................................................32  WT/ACC/SPEC/CPV/4 
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 -
 Technical barriers to trade, standards and certification.....................................................34  
- Sanitary and phytosanitary measures...................................................................................34  
- Trade-related investment measures ......................................................................................36  
- State-trading entities......................................................................................................... ......36  
- Free zones, special economic areas........................................................................................37  
- Government procurement......................................................................................................38  
- Transit........................................................................................................................ ..............39  
- Agricultural policies.......................................................................................................... ......39  
(a) Imports........................................................................................................................ .............39  
(b) Exports........................................................................................................................ .............39  
(c) Internal policies.............................................................................................................. .........40  
- Trade in ci vil aircraft........................................................................................................ ......40  
- Textiles regime ................................................................................................................ ........40  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................41  
- GENERAL........................................................................................................................ .......41  
- Industrial property protection...............................................................................................41  
- Responsible agencies for policy formulation and implementation .....................................41  
- Participation in international intellectual property agreements ........................................42  
- Application of national and MFN treatment to foreign nationals......................................42  
- Fees and taxes................................................................................................................. .........42  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................43  
- Copyright and related rights..................................................................................................4 3 
- Trademarks, including  service marks...................................................................................43  
- Geographical indications, including appellations of origin.................................................44  
- Industrial designs............................................................................................................. .......44  
- Patents........................................................................................................................ ..............44  
- Plant variety protection....................................................................................................... ...45 
- Layout designs of integrated circuits ....................................................................................45  
- Requirements on undisclosed information, including trade secrets and test data............45  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS......................................................................................................................... ..........46  
- ENFORCEMENT...................................................................................................................4 6 
- Civil judicial procedures and remedies.................................................................................46  
- Provisional measures ........................................................................................................... ...46 
- Administrative procedures and remedies.............................................................................47   WT/ACC/SPEC/CPV/4 
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 - Special border measures........................................................................................................ .47 
- Criminal procedures............................................................................................................ ...47 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................48  
VII. TRANSPARENCY .................................................................................................................51  
- Publication of information on trade......................................................................................51  
- Notifications.................................................................................................................. ...........51  
VII. TRADE AGREEMENTS .......................................................................................................51  
CONCLUSIONS .................................................................................................................... ..............52  
ANNEX .......................................................................................................................... .......................53  
 
  WT/ACC/SPEC/CPV/4 
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 I. INTRODUCTION 
1. The Government of the Republic of Cape Ve rde applied for accession to the World Trade 
Organization in November 1999.  At its meeti ng on 17 July 2000, the General Council established a 
Working Party to examine the application of the Government of Cape Verde to accede to the World 
Trade Organization (WTO) under Article XII of th e Marrakesh Agreement establishing the WTO.  
The terms of reference and the membership of the Working Party are reproduced in document 
WT/ACC/CPV/2/Rev.[2]. 
2. The Working Party met on 26 March a nd 8 December 2004; and ……….. under the 
Chairmanship of Mr. D. Shark (United States). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Cape Verde (WT/ACC/CP V/3), the questions submitted by Members on the 
foreign trade regime of Cape Verde, together with  the replies thereto, and other information provided 
by the authorities of Cape Verde (WT/ACC/CPV/4; WT/ACC/CPV/5; WT/ACC/CPV/6; WT/ACC/CPV/7; WT/ACC/CPV/8; WT/ACC/CPV/9 and Revision 1; WT/ACC/CPV/10 and 
Revision 1; WT/ACC/CPV/11 and Revision 1; WT/ACC/CPV/12 and Revision 1; WT/ACC/CPV/13 
and Revision 1; WT/ACC/CPV/14 and Revision 1; WT/ACC/CPV/15, WT/ACC/CPV/16, WT/ACC/CPV/19, WT/ACC/CPV/20………), includi ng the legislative texts and other 
documentation listed in Annex I.  
INTRODUCTORY STATEMENTS 
4. The representative of Cape Verde said that desp ite Cape Verde's limited natural resources and 
production base and other constraints faced as a least  developed country (LDC), his country had over 
the past 15 years undertaken measures that had libera lized its economy to foster growth and facilitate 
trade integration.      
5. In view of the Guidelines established by th e General Council (WT/L/508), and bearing in 
mind Cape Verde's current status as an LDC, the representative of Cape Verde called on Members of 
the Working Party to expedite and be flexible in the negotiations to establish Cape Verde's WTO 
commitments and to extend special and differential treatment as foreseen in the provisions of the 
WTO Agreements regarding LDCs.  Technical assi stance and transition periods were needed to 
implement some WTO commitments.  In this rega rd, Cape Verde sought support in the areas of 
intellectual property, mediation and arbitration, agriculture, food safety, sanitary and phytosanitary WT/ACC/SPEC/CPV/4 
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 measures, protection of human health, flora and fauna, technical barriers to trade, and customs 
procedures.  He noted that the United Nations (UN) General Assembly had accepted the Economic 
and Social Council's recommendation to gradua te Cape Verde from the group of LDCs on 
10 December 2004.  Consequently Cape Verde w ould no longer be classified as an LDC [as from 
December 2007]. 
6. Members of the WTO welcomed Cape Verde's application to join the Organisation.   
Appreciating the efforts already undertaken by Ca pe Verde to achieve compliance with WTO rules 
and principles, some Members noted that further wo rk was needed.  In this regard, Members pledged 
to work constructively with Cape Verde.  Some  Members indicated that they had, and would, 
continue to offer technical assistance to facilitate  Cape Verde's accession.  Members looked forward 
to Cape Verde's early accession on appropriate term s.  Some Members referred to Cape Verde's 
current status as a least-developed country, and in keeping with the guidelines on LDCs' accessions, 
would consider this a relevant factor in establishing Cape Verde's terms of accession. 
7. The Working Party reviewed the economic polici es and foreign trade regime of Cape Verde 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by 
Members of the Working Party on the various aspects of Cape Verde's foreign trade regime, and on 
the terms and conditions of Cape Verde 's accession to the WTO, are summarized below in paragraphs 
8 to [..]. 
II. ECONOMIC POLICIES  
- Monetary and Fiscal Policy 
8. The representative of Cape Verde said that the Bank of Cape Verde (BCV) fulfilled the role 
of the central bank and in accordance with Law No . 10/VI/2002 of 15 July 2002, worked with the 
Government in defining and executing monetary  and exchange policies, and in guiding and 
supervising the monetary, financial, and exchange markets.  The BCV functioned to maintain price 
stability whilst simultaneously regulating Cape Verd e's money supply.  In its latter function, its 
powers were limited because the Cape Verdean Escudo (CVE) was pegged to the Euro (€) and 
secured by the Government of Portugal.  
9. In the framework of reforms initiated in  1993, the BCV had abandoned administrative 
methods of monetary controls in 1999, in particul ar the use of administrati vely established interest 
rates and credit limits.  Regulation of monetary policy was currently achieved through open market 
operations, variations in the cash reserve coefficients , and adjustments in the BCV's rediscount rate.    WT/ACC/SPEC/CPV/4 
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 10. As for the financial sector, the Constitution of Cape Verde had been amended in 1989, 
removing banking activities from the exclusive control of the State (Law No. 52/III/89).  Cape Verde 
currently had four commercial banks, with a to tal of 35 branches, and a few parabanking and 
international financial institutions.  BCV as the cen tral bank continued to licence qualified banks and 
other financial institutions to increase competition and to promote the development of a competitive 
financial sector. 
11. The Government's fiscal program sought to expand the provision of key social services, 
develop Cape Verde's infrastructure, and foster pr ivate sector-led economic growth, while maintaining 
overall fiscal discipline.  Cape Verde's fiscal perfo rmance had improved in 2001.  Currently, the fiscal 
deficit had been targeted to remain at 3 per cen t of GDP (CVE 2.2 billion), having declined from 
19 per cent of GDP in 2000.  Fiscal policy was gear ed towards continuing th is consolidation.   
12. With regard to the taxation regime, Cape Verd e had initiated reforms in  1991.  Prior to 1991, 
complex administrative procedures had been used to  calculate and estimate taxes, tax fraud, and tax 
evasion.  One of the objectives of the reform progr am, outlined in the Development Plan (III PND), 
was to endow Cape Verde with a modern, adequate , simple and efficient taxation system.  The new 
system allowed the State to collect more revenue, es tablish relatively moderate  taxes, and broaden the 
tax base to include public employees who previously did not pay taxes.  The program also included 
(i) the creation of a more effective collection system; (ii) collection of a Single Tax on Income for individual and collective persons (e.g.  partnerships and corporations) rather than the multiple taxes 
that existed previously; and (iii) the creation and application of a Single Property Tax to substitute 
various municipal property taxes.  Some constraints remained to be overcome, including the lack of 
adequate information on tax and fiscal obligations, the existence of a large number of undeclared 
taxpayers, and a lack of qualified personnel to administer the new system.   
13. As part of the ongoing reforms, his Government  had recently introduced amendments to the 
Single Tax on Revenue, primarily to update the tax brackets, accelerate tax liquidation, and authorize 
a fiscal census of taxpayers and enterprises.  Cape  Verde had adopted a Value Added Tax (VAT),  as 
well as a Special Tax on Consumption (STC).  The representative of Cape Verde confirmed that VAT; STIC and the Environmental Tax were the [only]  domestic taxes applied to imports and local 
production sold internally for domestic consumption.   
- Foreign Exchange and Payments  
14.  The representative of Cape Verde said th at his Government had signed an Exchange 
Cooperation Accord with Portugal, which establishe d a fixed parity between the Cape Verde Escudo 
(CVE) with the Portuguese Escudo, and subsequently  with the Euro (€) (Resolution No. 81/V/98 of WT/ACC/SPEC/CPV/4 
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 11 May 1998).  The fixed rate of exchange was € 1 to CVE 110.265.  Under the terms of the Accord, 
Cape Verde had committed itself to adopting macr oeconomic guidelines that would safeguard this 
parity.  
15. The representative of Cape Verde said that  his Government had notified the IMF on 
6 August 2004 of its decision to accept the obligations of Article VIII, Sections 2 (a), 3 and 4, and had 
also announced that it had eliminated all restri ctions on current transactions.  However, the 
implementation of this decision had since been de layed on account of an existing bilateral agreement 
on credits and payment betw een Cape Verde and Cuba. 
16. With respect to foreign exchange controls, in accordance with Decree Laws No. 25/98 and 
26/98 of 29 June 1998, and the Bank of Cape Verd e's Notice No. 4/98 of 21 December 1998, transfers 
and payments for current transactions could be done freely.  Cape Verde applied no restrictions on the 
opening of bank accounts in foreign currency, and BCV authorization was not required to obtain 
currency to import merchandise valued up to CVE 5,00 0,000 (€ 45,345) or for interest payments on 
loans or credits, in any amount, that had been prev iously authorized by the BCV.  However, prior 
verification by the BCV was required for invisi ble operations of amounts exceeding CVE 1,000,000 
falling under the heading "private unilateral transf ers"; for transfers exceeding CVE 5,000,000 as 
revenues or as payment for services rendered; and fo r pre-payment or final settlement of current 
transactions more than three months in advance when the instalment exceeded CVE 1,000,000 (and 
35 per cent of the contractual value).  He added that  authorizations would not be unjustifiably denied 
and in any case the applicant had the constitutional right of appeal.  He  confirmed that Cape Verde did 
not maintain foreign exchange restrictions such  as mandatory surrender requirements, prior import 
deposits, or taxes on the acquisition of foreign exchange.    
17. The representative  of Cape Verde said that the Foreign Investment Law No. 89/IV/93 of 
13 December 1993 facilitated the full (100 per cent) tran sfer of foreign investment capital as long as 
the foreign investor was registered as such with  the BCV and was authorized by the Minister of 
Finance and Planning to carry out foreign investme nt operations.  However, the BCV could require 
the transfer of capital arising from the sale, liquidatio n or dissolution of an enterprise to be carried out 
in quarterly instalments if transferring the su m in full would cause a serious disturbance to 
Cape Verde's balance of payments.  
18. A Member of the Working Party sought furthe r information on the circumstances, including 
judicial and appeal process, under which a fore ign account could be frozen.  In response, the 
representative of Cape Verde confirmed that a fore ign account could only be frozen on the basis of 
judicial action and a court decision to that effect.    WT/ACC/SPEC/CPV/4 
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 - Investment Regime  
19.  The representative of Cape Verde said that hi s Government's policy objectives on investment 
were to promote and encourage a transparent and fair business environmen t for both domestic and 
foreign investors, and to increase the role of the private sector in Cape Verde's development process.  
All sectors were open to investment, unless an activity  was considered a threat to national security, 
public morals, the environment or public health, or was in violation of domestic laws and regulations.   
20. The Centre for Tourism, Investment and Expor t Promotion of Cape Verde (PROMEX) and its 
successor CAPEVERDE Investments - CapeVerdean  Agency for Investment, a Government 
department under the supervision of the Ministry  of Economy, Growth and Competitiveness, was the 
authority charged with promoting trade and invest ment opportunities in Cape Verde.  All foreign 
investments were subject to prior authorization,  and the Foreign Investment Law No. 89/IV/93 of 
13 December 1993 set out the conditi ons for foreign direct investment (FDI) made in any sector of 
economic activity.  The procedures for authorization of  foreign direct investment in Cape Verde were 
stipulated in Regulatory Law No. 1/94 of 3 January 1994.  FDI was evaluated or assessed on the basis of criteria enumerated in Article 7 of the Regul atory Law.  His Government did not mandate any 
minimum (floor) or maximum (ceiling) value levels of investment in Cape Verde.    
21. Investment applications were addressed to the Ministry of Finance, Planning and Regional 
Development, through CAPEVERDE Investments, toge ther with particulars of each investor, details 
of the project location and, in specific cases, envi ronmental impact studies.  The specific cases that 
warranted environmental impact studies were dete rmined by the nature, size or location of the 
investment.  CAPEVERDE Investments provided investors with minimum criteria needed for 
inclusion in the environmental study.  
22. Provided no further information was requested by CAPEVERDE Investments, all applications 
were processed within 30 days.  Upon granting the au thorization, a Certificate of External Investment 
was sent to the investor or his legal representative.  This Certificate could be declared null and void if 
the investment did not occur within a specified de adline.  The start-up or reopening of business was 
subject to inspection by the competent authorities.   An investment project was prohibited if the 
application was rejected.  He added that the rejec tion of an application could be appealed either 
through the Courts or to the Government.  A reje cted application could also be presented again for 
reconsideration.   
23. The rights of all investors and the protecti on of their investment from expropriation or 
nationalization were guaranteed in Cape Verde.  All investors - whether - domestic or foreign, natural WT/ACC/SPEC/CPV/4 
Page 6  
 
 or legal persons, were treated equa lly in Cape Verde.  If expropriati on was necessary, it would be fair 
and equitable, and compensati on would have to be paid.  
24. On investment promotion incentives, existing la ws and regulations in Cape Verde provided 
sectors such as tourism, industry, exports and re-e xports, and financial institu tions with tax incentives 
and customs duty exemptions, facilities for the transfer  of funds and banking etc.  Incentives had also 
been provided to the transportation industry i.e. ma ritime, road and air transportation, and to the 
communications sector (see also section on Industrial policy, including subsidies).  Law No. 92/IV/93 
of 15 December 1993 provided fiscal and customs incentives for the export and re-export of goods 
and services.  Fiscal incentives included reductions in contributions and taxes on profits.  Customs 
incentives included [duty drawback] and duty exemp tions.  Upon request, enterprises duly entered in 
the fiscal and industrial registry could avail of th ese benefits within 120 days from the date of export 
or re-export.  Investment directed primarily to  the domestic market was not eligible for these 
incentives.  He stated that his Government woul d undertake a further study on the incentives provided 
for investment and industry (see also  section on Export Subsidies).   
25. The representative of Cape Verde said that Ca pe Verde's laws and re gulations contained no 
limitations related to foreign investment, except fo r the denial of incentives for investments catering 
exclusively or mainly to the domestic market.  He added that incentives for investment in the financial 
sector were governed by Decree Law No. 66/97 [of [...]].  Joint ventures with foreign investors in financial services were encouraged in accordance with Law No. 47/IV/92 of 6 July 1992.  Pursuant to 
Article 7 of Decree Law No. 87/89 of 24 November 1989, joint ventures could also be established in 
construction services (see also section on Trade in Services).   
- State Ownership and Privatization  
26. The representative of Cape Verde said that economic policies in Cape Verde had focused on 
import substitution and State control of the econom y from independence in 1975 to 1989.  Several 
public and mixed enterprises had been created in various sectors, including transportation (sea and 
air), fuel, agriculture, poultry, livestock production, fishing, pharmaceuticals, civil construction, naval 
repair, insurance, hotel services and the commerciali zation of basic goods.  The Government had also 
controlled the financial sector.  The State had thus played a significant role in the economy and by the 
end of 1988, 19 State-owned and 14 mi xed enterprises had been created.   
27. From 1991 onwards, the State's role in the ec onomy had been substantially diminished and 
the private sector had emerged as the engine fo r development.  Cape Verde had revised its 
Constitution to redefine the concept of public prop erty to provide a legal framework for market 
liberalization.  In accordance with the re vised Constitution and Law No. 93/IV/93 of  WT/ACC/SPEC/CPV/4 
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 15 December 1993, economic sectors were no longer r eserved for public activity in order to stimulate 
the private sector and to promote foreign investment.  As a result, more than 20 State-owned 
enterprises had been privatized.  Privatization of  these enterprises had been undertaken through the 
sale of shares or the direct sale of the enterprise.  The process of liquidation was used in certain cases.  
Details of the privatized enterprises are provided in Table 1. 
Table 1:  Privatized Enterprises  
Privatization Owners of Shares Original 
enterprise New privatized enterprise Fully Partially State Nationals Foreigners Direct sale 
Agência nacional 
de viagens 2 new agencies (ANV & 
ANAV) Yes      
AGRIPEC Agripec. Yes   X  Yes 
CABETUR Cabetur. Yes   X  Yes 
CONCHAVE Conchave. Yes   X  Yes 
ENAVI Sociave (Mindelo); Enavi 
(Praia). Yes   X  Yes 
EMPROFAC 7 pharm acies (only the 
pharmacies) Yes   X  Yes 
FAP Aripec; Coopechaves; Prolac. Yes   X  Yes 
Justino Lopes Associação sector agrícola 
Justino Lopes; Carmac; Propec. Yes   X  Yes 
INTERBASE Salmar and INTERBASE Yes    X 
(Salmar) Yes 
(Salmar) 
MACSOBIL Macsobil. Yes   X  Yes 
METALCAVE Metalcave. Yes   X  Yes 
MORABEZA Morabeza. Yes   X  Yes 
ONAVE Recoref; Belcab; Funcave; 
Lusonave. Yes   X  Yes 
SITA SITA Yes   X  Yes 
ULTRA Ultra. Yes   X  Yes 
ELECTRA Electra.  Yes X X X Yes 
ENACOL Enacol  Yes X X X Yes 
BCA Bca.  Yes X X X Yes 
Caixa Económica Caixa econo mica.  Yes X X X Yes 
Garantia 
(insurance 
company) Garantia.  Ye s X X X Yes 
Promotora Promotora.  Yes X X X Yes 
Cabo Verde 
Telecom Cabo verde telecom.   Yes X X X Yes 
Hotel Belo 
Horizonte Hotel Belo Horizonte Yes    X Yes 
Hotel Praia Mar Hotel Pr aia Mar Yes    X Yes 
CVC CVC Yes    X Yes 
MOAVE MOAVE Yes   X  Yes 
Hotel Xaguate Hotel Xa guate Yes    X Yes 
INTERBETAO INTERBETAO Yes   X  Yes 
FAMA FAMA Yes   X  Yes 
OFICINAS OFICINAS Yes   X  Yes 
CERIS CERIS Yes    X Yes 
EMPA Liquidated Yes   NA NA Liquidation 
TRANSCOR TRANCOR, S.Vicente Yes   X  Yes 
ARCA VERDE Liquidated Yes   NA NA Liquidation 
SONACOR Liquidated Yes   NA NA Liquidation 
 WT/ACC/SPEC/CPV/4 
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 28. In addition to the enterprises listed in Table 1,  State-owned enterprises in the early stages of 
being privatised were TACV (Cape Verde's Air Transportation Company), ENAPOR (Port 
Authority), EMPROFAC (Pharmaceuticals), and CABENAVE-SARL (repair docks).  He confirmed 
that foreign investors had participated in Cape  Verde's international pu blic tenders and would 
continue to be eligible to participate freely in  the privatization process.  The ongoing privatization 
plans are outlined in Table 2. 
Table 2:  Privatization Plans
 
Envisaged Privatization State-owned enterprises slated for 
privatization Capital 
(US$ million) Share Direct sale 
CABNAVE 7 a)  Concession Contract 
ENAPOR 9.4 b)   Concession Contract 
EMPROFAC 7 c) X Full privatization, sale of shares 
TACV (Strategy not yet defined) 11d)   
 
a) Net book Value, Source: Booz-Allen & Hamilton, 2004 
b) Source: ENAPOR's Financial Department 
c) Source: Euro-Phoenix, 2004 
d) TACV Annual Report 2003,  Balance Sheet Net Worth  
 
29. He added that under the terms of a performance  contract signed with the Government of 
Cape Verde, two State-owned enterprises - the Airport Management Company and the Postal 
Company -  were not to be privatized. 
30. The representative of Cape Verde confirme d that his Government would ensure the 
transparency of its ongoing privatization programme .  He stated that his Government would provide 
annual reports to WTO Members on developments in its privati sation programme as long as the 
programme would be in existence, and along the lines of the information already provided to the 
Working Party during the accession process.  The Working Party took note of this commitment. 
- Pricing Policies  
31. The representative of Cape Verde said that pr icing policies were governed by Decree Law 
No. 52/2003 of 24 November 2003, and price contro ls for goods and services were regulated by 
Ministerial Ordinance No. 2/2004 of 19 January 2004.  All price controls in Cape Verde were either 
fixed prices, maximum (ceiling) prices, or negotiated prices.  Mandated profit margin levels were not 
part of Cape Verde's price regimes.  Goods subject  to price controls in Cape Verde are listed in 
Table 3. 
32. Services subject to price regulation in Cape Verde included fixed prices for maritime 
cabotage services, water supply, electric power supply and fuel supply; maximum prices for taxi  WT/ACC/SPEC/CPV/4 
 Page 9 
 
 
 services; and negotiated prices for private hea lth care services, communication services, and 
[passenger] transportation services. 
33. Prices were administered by autonomous regulatory agencies in consultation with the Upper 
Council of the Chambers of Commerce.  The Govern ment, i.e. the Ministry of Economy, Growth and 
Competitiveness, together with the relevant Minist ries was responsible for the supervision of the 
regulatory agencies created for th e administration of price controls.  Pursuant to Decree Law 
No. 3/1993 of 15 February 1993, the price regime fo r drugs (pharmaceuticals) was determined jointly 
by the Ministers of  Health, Industry and Commerce.   
34. Administered prices in Cape Verde were adjusted  when prices in the international market had 
changed significantly.  Adjustments were periodic with no set timeframe and prices had been modified in 1994, 1998, 2003 and 20 04.  Economic criteria, such as allowing a reasonable rate of 
return on the investment, were incorporated into the price setting.  He added that price controls were 
administered with transparency.   Laws and regul ations establishing or modifying price controls in 
Cape Verde had always been published in th e Official Bulletin before taking effect. 
35. Price controls were applied to imported a nd domestically-produced goods and services, but 
not to exports.  Price controls for imported br ead and baking products, rice, sugar (granules), corn, 
wheat flour and bran, butane gas, gasoline, gas oil an d kerosene were applied at the point of sale.  He 
confirmed that products affected by price contro ls were no longer subject to State trading.   
36. [The representative of Cape Verde stated that in the application of price controls now or in the 
future, Cape Verde would apply such measures in a WTO-consistent fashion, and take account of the 
interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994.  Cape Verde 
would publish the list of goods and services subject to State controls and any changes to this list in its 
Official Gazette and would continue to do so af ter accession.  The Working Party took note of these 
commitments.]  [The Government of Cape Verd e, now and after the country's accession to WTO, 
would engage itself to respect the provisions of  Article III:9 of the GATT 1994 while applying 
internal maximum price control measures, but such  measures shall take account of the interests of 
exporting WTO contracting parties supplying imported pr oducts concerned with a view to avoiding to 
the fullest practicable extent prejudicial effect s before any.  The Government of Cape Verde 
confirmed that, in compliance with Article 264 of the Constitution, it had always published the list of 
goods and services subject to State control and any la ter changes in its Official Gazette and would 
continue to do so after accession.  The Wo rking Party took note of these commitments.]    WT/ACC/SPEC/CPV/4 
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 - Competition Policy 
37. The representative of Cape Verde said that, as per the Preamble of Decree Law No. 2/99 of 
1 February 1999, the regulation of competition polic y was based on the need for product diversity and 
economic or technological advances.  Although De cree-Law No. 53/2003 of 24 November 2003 had 
revoked Decree-Law No. 2/99, the new Law had retained  the former policies that were actually in 
place, planned or under development.  The envisag ed Competition Advisory Council, an independent 
quasi-judicial government entity, was not yet ope rational due to budgetary, office and manpower 
constraints.  Decree Law No. 53/2003 defined the powers, functions and composition of the 
Competition Advisory Council.  The Council's primar y function would be to adjudicate claims of 
unfair trade, but the Council could also propose dr aft legislation to the Government.  Council 
Decisions could be appealed to the courts.  As  this body was not yet operational his Government 
continued to perform the said powers and functions.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government  
38. The representative of Cape Verde said that  Cape Verde's Constitution had been promulgated 
on 7 March 1980.  The Constitutio n had subsequently been revi sed in 1981, 1988, 1992, 1995 and 
again most recently in 1999.  The Constitution provi ded for a separation of ex ecutive, legislative and 
judicial powers.  The President of the Republic was the Head of State, elected by popular vote for a 
five-year term.  The President could be re-elected only once.  
39. Under the Parliamentary system established in Cape Verde, the executive branch of the 
Government was headed by the Prime Minister.  The Prime Minister was nominated by the President after consultation with parliamentary parties.  The leader of the majority party or the coalition of 
parties with a majority in Parliament was usually selected as Prime Minister.  
40. Legislative power resided in the unicameral  National Assembly made up of 72 members 
elected for a five-year term.  The laws approved by the National Assembly were forwarded to the 
President of the Republic who could either promulga te them or send them back for a second reading.  
Matters referred back by the Presi dent needed to be passed by the National Assembly by two-thirds 
vote on constitutional matters, or by a simple majori ty for other matters before becoming law.  Since 
Cape Verde's independence in 1975 , all precedent laws, rules, regulations and procedures while not 
expressly revoked, were valid and in force accordi ng to the Decision with Force of Law No. 1/75 of 
5 July 1975, except in cases where they were in compatible with Cape Verde's sovereignty.  WT/ACC/SPEC/CPV/4 
 Page 11 
 
 
 41. Outlining the procedure for Cape Verde's ratif ication of its WTO accession package, he said 
that his Government would verify the accuracy and contents of the negotiate d terms, and forward the 
package together with a draft r esolution to the National Assembly for approval.  Upon approval, the 
National Assembly would forward the package to the President who, after statutorily checking the National Assembly Resolution and the package for its  legality and compatibility with Cape Verde's 
Constitution, would ratify the package by a public noti ce to be published in the Official Journal.  He 
expected the process of domestic ratification to ta ke no more than 90 days.  He added that, upon 
accession to the WTO and in accordance with Articles 12-14 of the Constitution, the provisions of the 
WTO would [automatically] supersede domestic law and be an integral part of Cape Verde's 
legislation. 
42. Cape Verde's judicial system consisted of Constitutional Courts; the Supreme Court of 
Justice; Judicial Courts of the First Instance; the Court of Accounts; Military Courts; and Fiscal and 
Customs Courts.  The Courts of the First Instance  were divided into firs t, second and third class 
judicial districts, with the Supreme Court of Justice being the court of last instance.  Other Courts could be created by law, such as Judicial Courts of Second Instance, Administrative Courts, 
Arbitration Courts and Conflict Resolution Institution s with jurisdiction upon smaller territorial areas. 
43. Matters decided in Third Class courts could be a ppealed either to First or Second Class courts 
provided the claim was valued at or above CVE 20 0,000 (€ 1,814).  Cases d ecided in the First and 
Second Class courts could be appealed to the Supr eme Court provided the claim was valued at or 
above CVE 500,000 (€ 4,535).  In the ambit of tr ade in goods and services and intellectual property 
rights, an aggrieved party could lodge a written appeal against an administrative decision.  
In conformity with Article X of the GATT 1994, deci sions proffered by the Customs or other official 
entities could be appealed either to the Fiscal and Customs Courts, or Common Courts.  On matters 
relating to trade in services and TRIPS, administra tive appeals could be directed to Administrative 
Courts or Common/Ordinary Courts.  The Administra tive Courts were not yet operational, and in the 
interim Common or Ordinary Courts and the Supr eme Court of Justice performed its functions.  
He added that the Administrative Courts, once opera tional, would be an independent judicial body 
and not part of the executive.  Administrative C ourts would have jurisdiction over cases or actions 
initiated against the Government and its members or o fficers while carrying out their official duties.    
44. He noted that the National Assembly had pr omulgated Cape Verde' s mediation laws in 
May 2005 as outlined in the Action Plan (WT/ ACC/CPV/13 and Rev.1).  The coverage of 
Decree Law No. 30/2005 on the creation of mediation centres and Decree Law No. 31/2005 regulating the use of mediation in the resolution of conflicts included definitions; the general principle 
of mediation; mediators; representation; compulsory representation; mediation centres and their rules WT/ACC/SPEC/CPV/4 
Page 12  
 
 of procedures; pre-mediation and end of the mediation process; final provisions etc.  He added that 
Cape Verde's proposed arbitration law and legisla tion on arbitration centres were scheduled to be 
approved by the National Assembly by [July 2005].  The coverage of the proposed arbitration law 
would include arbitration conventions ; arbiters and establishment of an  arbitral Court; operation of the 
arbitration process; arbitral decisions; and internatio nal arbitration or the adaptation of the arbitration 
law of Cape Verde to the international judicial inst ruments that regulate international arbitration, i.e. 
the United Nations' Conventions on International Commercial Arbitration and the Regulation of 
Arbitration of the International Chamber of Commerce.  
45. The existing framework for arbitration between  foreign investors and the Government of 
Cape Verde allowed for appeals to be made to inte rnational arbitration panels.  Certain provisions of 
the Foreign Investment Law (Law No. 89/IV/93), notably Article 17 and the Annex, provided the 
legislative basis for such arbitration.  He noted  that his Government was not a member of the 
International Centre for Settlement of Investment  Disputes (ICSID).  Cape Verde was also not a 
signatory of the 1994 Treaty of Port-Louis and ha d not joined the Organisation pour l'harmonization 
des droits d'affaires en Afrique (OHADA).  Howe ver, a study recommended by the ECOWAS Heads 
of State was to be carried out on the extension of OHADA to all ECOWAS member States, including 
Cape Verde.  
46. [The representative of Cape Verde confirmed that upon the date of accession, Cape Verde 
would establish the appropriate independent administra tive or judicial tribunals or procedures for the 
prompt review of the Government's actions rela ting to the implementation of laws, regulations, 
judicial decisions and administrative rulings of a ge neral application referred to in Article X:1 of the 
GATT 1994, Article VI of GATS, and Articles 41 and 42 of TRIPS.  The tribunals or procedures 
would also include actions relating to the im plementation of national treatment, conformity 
assessment, the regulation, control, supply or promotion of a service, including the grant or denial of a 
licence to provide a service and other matters.  Th e tribunals or procedures responsible for such 
reviews would be impartial and i ndependent of the agency entrusted with administrative enforcement 
and shall not have any substantial interest in the outcome of the matter.  The review procedure would 
include the opportunity for appeal, without penalty,  by individuals or enterprises affected by any 
administrative action subject to review.  Notice of the decision on appeal would be given to the 
appellant and the reasons for such a decision would be provided in writing.  The Working Party took 
note of these commitments.] 
47. The representative of Cape Verde said that trad e policy was the responsibility of the Ministry 
of Economy, Growth and Competitiveness which coordinated with other ministries having 
jurisdiction over trade-related matters.  An inte r-ministerial group was convened for the formulation  WT/ACC/SPEC/CPV/4 
 Page 13 
 
 
 of trade policy.  His Government solicited the vi ews of municipalities and the private sector through 
industry associations and the Chambers of Comme rce.  The Council of Ministers had the final 
authority in formulating trade policy.  
48. His Government had created a WTO Unit to (i) develop trade policy initiatives and make 
recommendations to the Council of Ministers; (ii)  coordinate the implementation of trade policy 
decisions made by the Council of Ministers; ( iii) coordinate WTO related matters within the 
Government; (iv) prepare notifications to the WT O; and (v) carry out any WTO related functions 
deemed necessary by the Government or the Council of Ministers. 
49. The representative of Cape Verde noted that  the WTO accession process had in several 
instances necessitated the drafting of new legislation or the modification of existing laws and regulations to ensure WTO conformity.  New laws  currently under review included the Customs Law 
(Code); Intellectual Property Law (patents and tr ademarks); Law on Arbitration; and the Law on 
Foreign Trade.  A General Legislative Action Plan  for further legislative reform was submitted in 
document WT/ACC/CPV/12 and its revision. 
- Authority of Sub-Central Governments 
50. The representative of Cape Verde said that no s ub-central Government entity in Cape Verde 
was vested with the authority to create legal re quirements in the areas covered by the WTO.  
Cape Verde was a unitary Republic with a President , the National Assembly, Government and Courts.  
The central government had the exclusive authority over all administrative issues of national scope.  
Local administration was the responsibility of municipa lities.  All laws and regulations were enforced 
by the administration or courts.    
51. [The representative of Cape Verde confirme d that Cape Verde would, upon accession, apply 
WTO provisions and Cape Verde's Protocol of Accession uniformly throughout the entire customs 
territory, including in regions engaging in border tr ade or frontier traffic, special economic zones, and 
other areas where special regimes for tariffs, taxes and regulations were established.  He added that 
when apprised of a situation where WTO provisions were not being applied or  were applied in a non-
uniform manner, central authorities would act to en force WTO provisions without requiring affected 
parties to petition through the c ourts.  The Working Party took note of these commitments.]  WT/ACC/SPEC/CPV/4 
Page 14  
 
 IV. POLICIES AFFECTING TRADE IN GOODS  
- Trading Rights 52.  The representative of Cape Verde said that [Decree-Law No. 1/75 of 5 July 1975, 
implemented through Ministerial Ordinance  No. 13 of 1978, Decree Law No. 59/1999 and Ministerial 
Ordinances No. 45-A/99 and No. 45-B/99 of 27 Se ptember 1999], stipulated that all businesses 
engaging in import and export opera tions had to register with the Conservatory of Commercial 
Registry under the Ministry of Justice.  Businesses also had to register for a permit as a "commercial 
operator" with the Department responsible for co mmerce.  The Chambers of Commerce operated the 
registration of all "commercial ope rators" on behalf of the Governme nt of Cape Verde.  While his 
Government had delegated this registration authority to the Chambers of Commerce, the Ministry of 
Economy, Growth and Competitiveness retained the pow er to monitor and regulate this registration 
and establish general guidelines to oversee the activiti es of the Chambers of Commerce.  He added 
that the Ministry of Economy, Growth and Comp etitiveness was currently revising the legislation 
regulating this area. 
53. Any commercial firm or entity needed to be a juridical person and have juridical commercial 
capacity (i.e. be invested in Cape Verde) to re gister.  Legal entities operating in Cape Verde could 
register as commercial enterprises in the form of sole proprietorships, part nerships, limited liability 
companies, cooperatives, capital stock corporations a nd public corporations.  Industrial enterprises not 
engaged in international trade had their own separ ate registration requirements and procedures.   
54. Foreign enterprises had to establish themselves through a branch or any other form of 
commercial representation to register in Cape Ve rde and engage in import or export operations.  
International traders once registered with the Con servatory of Commercial Re gistry and the Chambers 
of Commerce, were not required to fulfil any other registration requirements.  Importers and exporters 
were required to register so that his Governme nt could monitor them and the legality of their 
activities.  Registration also gave firms the right to distribute imported goods (at the wholesale level) 
within Cape Verde.  An enterprise could engage  in both importation and distribution activities by 
specifying this in the registration documents. 
55. The procedures and requirements for registrati on of commercial operators were outlined in 
Decree Law No. 50/2003 of 24 November 2003.  Two Chambers of Commerce were authorized by 
the Government to register commercial operators  on behalf of the Government.  These were  
(i) the Chambers of Commerce, Industry and Servi ces of Sotavento (covering the Islands of Santiago, 
Maio, Fogo and Brava); and (ii) the Chamber of Commerce, Industry, Agriculture and Services of 
Barlavento (covering S. Vicente, S. Antão. St. Ni colau, Sal and Boa Vista).  He said that any  WT/ACC/SPEC/CPV/4 
 Page 15 
 
 
 interested party could apply to the Chambers of  Commerce to become a commercial operator and 
engage in import and export activiti es.  The application would also specify by the products (by HS 
Code) that would be imported or exported.  The Ch ambers of Commerce could return the application 
for registration if the commercial operator did not comply with the existing laws, rules and 
procedures, and if the conditions set  out in Decree Law No. 50/2003 were  not fulfilled.  In response to 
specific queries on the operation of this registration system by the Chambers of Commerce, he stated 
that new registration procedures had been drafted by  the Government and that the registration process 
was being revised.   
56. The time needed to register depended on the applicant's diligence in submitting his/her 
application.  A foreign or domestic enterprise w ould receive a response on its application within 
30 days.  If no response was received within 30 days, the registration was deemed granted.  Recourse 
to administrative appeals was available if ther e were undue delays or in case of rejection.  
The Ministry of Justice was working on the establis hment of an on-line authorization and registration 
system to accelerate the registration process at  the Conservatory of Commercial Registry.  
Each municipality would have its own integrated on- line registration system that would be connected 
to the central office.  Electronic systems had been set up in Praia, Mindelo, and Sal Island and a 
program had been drafted to cover the whole country.   
57. Registration fees fixed by Ordinance No. 31/86  of 6 September 1986, and collected by the 
Chambers of Commerce, varied for import and ex port operations.  All firms seeking registration as 
importers, whether foreign or domestically-owned, pa id an annual registration (and renewal) fee of 
CVE 10,000 (€ 90.69).  Likewise, all firms request ing registration as exporters, whether foreign or 
domestically owned, paid an a nnual registration (and renewal) f ee of CVE 5,000 (€ 45.35).  The 
registration fees covered (i) processing the registra tion applications; (ii) maintaining registration 
records; (iii) maintaining a database of import and export operations; (iv) payments for meeting 
expenses; (v) travel expenses; and (vi) the dissemin ation of information and other activities.  The 
registration fees were based on the cost of the servi ces rendered and were, in hi s view, consistent with 
Articles III and VIII of GATT 1994.   
58. He noted that importation of staple food products, previously an exclusive State trading 
activity carried out by the Public Stock Provisioning Enterprise, was now open to private enterprises.  
The volume of imports was neither controlled by discretionary (non-automatic) licensing nor was 
there any limitation on the number of enterprises that could currently apply to import these staple food 
products.  The import regime for staple food products, i.e. corn, rice, and sugar, was set out in Decree 
Law No. 29/2002 of 9 December 2002.  Wheat flour  had been added to this regime through 
Ministerial Ordinance No. 6/2004 of 16 February 20 04.  The import regime for these staple products WT/ACC/SPEC/CPV/4 
Page 16  
 
 required the commercial operator to obtain prior regi stration to exercise the import activity; maintain 
appropriate installations to store these products; and document the capacity to distribute 30 per cent of 
the annual import volume outside the Santiago and São Vicente islands.   
59. Individuals importing goods for personal use we re not required to register.  Activities not 
considered "import operations" we re also exempt from registra tion requirements, including the 
importation of (i) goods destined for accredited diplomatic and consular representatives in 
Cape Verde; (ii) religious articles for churches; ( iii) materials for the Government's own needs and not 
to be distributed further; (iv) "consumption goods " for social, cultural, recreational, sports, and non-
profit institutions used in the exercise of their activ ities i.e. all goods which were not raw materials, 
semi-finished products or equipment.  Non-profit institutions exempt from registration requirements 
could offer these imported goods for resale in Cape Verde, pursuant to the approval of the General 
Customs Directorate, and in accordance with the Law protecting Arts and Sciences (Law 
No. 108/V/99 of 2 August 1999); and (v) live animals, se eds, plants, pesticides, fertilizers, reagents 
and other laboratory materials for use by the Ministry of Environment, Agriculture and Fisheries in experimental farms for the development of the agriculture, forestry and livestock sector.  Some 
private firms were involved in the purchase of these exempted goods.   
60. The representative of Cape Verde noted that  registration requirements for commercial 
operators engaging in exports were identical to t hose for imports.  Any firm or commercial operator 
could register as an exporter or an importer or bot h.  However, the entity could not register for one 
activity (e.g. imports) and then pr actice another (e.g. exports).  Re gistration requirements had to be 
met for each separate activity.  Exported goods needed  to comply with formalities designed to control 
foreign exchange operations, as well as with all quality  requirements, rules of origin or other norms 
required by law or by international accords subscr ibed to by Cape Verde.  Exporters serving the 
United States' market under the African Growth a nd Opportunities Act (AGOA) registered with the 
government department responsible for commerce as exporting begun and deregistered if they ceased 
exporting. 
61. A Member stated that the requirements, in pa rticular that of a minimum level of equity 
investment and discriminatory fees to obtain the right to import into and export from Cape Verde, 
would seem to be a WTO inconsistent restriction on trade.  The requirements associated with 
obtaining the right to import into and to expor t from Cape Verde appeared to constitute a WTO-
inconsistent restriction on trade,  discriminating against imports vis-a-vis  domestic production.  The 
right to import and export goods without investing in a member country was a fundamental right 
under the WTO, and was protected through provis ions in GATT Article XI and Article III.    WT/ACC/SPEC/CPV/4 
 Page 17 
 
 
 62. The representative of Cape Verde replied that importers were required to possess sufficient 
capital to cover operating costs, including payments for imported goods and customs duties.  The 
registration fees were, in his view, not discriminator y as they applied to both Cape Verdean nationals 
and foreigners.  He added that new registration procedures had been drafted and the registration 
process was being revised. 
A. IMPORT REGULATIONS - Ordinary customs duties 
- Customs tariff 
63. The representative of Cape Verde said that the existing Customs legislation was old, 
fragmented and to some extent outdated.  Thus, a new extensive and comprehensive Customs Code 
was being prepared.  As per the timetable set out in the Action Plan (WT/ACC/CPV/12/Rev.1) he 
expected the Code to be approved by the National Assembly [in July 2005].  A draft of the Customs 
Code was circulated to the Working Party for review and comments. 
64. In accordance with Law No. 85/V/98 of 31 D ecember 1998, Cape Verde had adopted the 
Economic Community of West African States (ECO WAS) customs nomenclature, which was based 
on the 1996 version of the Harmonized System (HS) of Commodity Classification.  The ECOWAS 
nomenclature utilised ten digits, with the first six dig its indicating the HS chapter, its headings and its 
sub-headings, the seventh and eighth digits confor ming with ECOWAS statistical classification; and 
the ninth and tenth digits corresponding to the sta tistical classification at the national level.  
ECOWAS had established a roadmap to implement the HS 2002 nomenclature [by December 2003]. 
65. He noted that custom duties were applied on imported goods in accordance with the MFN 
rates currently stipulated in Cape Verde's Customs Tariff.  As set out in Law No. 48/VI/2004 of 26 July 2004, customs duties had been modified and reduced on 1 January 2004.  Duties on wheat flour had been modified through Law No. 37/VI/2003 of 31 December 2003.  The rates had not been 
increased on any tariff line.  Customs duties in Cape Verde were predominantly applied on an 
ad valorem basis with seven tariff bands and base duty rates of  zero, 5, 10, 20, 30, 40 and 50 per cent.  
The trade-weighted tariff average had ranged be tween 24 per cent in 1995 and about 31 per cent in 
June 2002.  Import duties constituted approximately 50 per cent of the taxes collected at the border in 
2002 and early 2003. 
66. Preferential duty rates were applied to impor ts from ECOWAS or under free trade agreements 
with African Portuguese speaking countries (Angola,  Guinea Bissau, Mozambique and Sao Tome and WT/ACC/SPEC/CPV/4 
Page 18  
 
 Principe) and imports from Mauritania.  The free trade agreement with the African Portuguese 
speaking countries needed a pr otocol on rules of origin to become fully functional. 
[An initial offer on goods was submitted by Cape Verde in November 2004 and is available for  
consultation (see notice in document WT/ACC/SPEC/CPV/2).]  
- Other duties and charges 
67. The representative of Cape Verde said that prio r to the tax reforms and introduction of Value 
Added Tax (VAT) on 1 January 2004, imports into  Cape Verde had been subject to numerous 
additional taxes, duties, and charges namely (i) a Tonnage Tax levied as a charge per ton on vessels; 
(ii) a Special Storage tax introduced in 1960 for the storage of fuels; (iii) a Storage charge by the 
Customs House for goods stored in its former wareh ouses; (iv) a Surcharge ("ISDC") of 35 per cent  
on goods imported by informal importers; (v)  intere st paid by importers for credit on custom duties; 
(vi) a Late Payment Penalty or additional inter est for delayed payment of duties and charges; 
(vii) General Customs Fees or General Emolumen t Tax of 9 per cent introduced in 1942; (viii) Tax 
Penalties or fines and other judicial charges; (i x) a Consumption Tax on imported goods; (x) a Stamp 
Duty dating back to 1942; (xi) a Customs User Fee; (xii) a Tax on Duty-Free shops, introduced in 
1970; (xiii) a Miscellaneous Tax for recovery of minor  charges; (xiv) an Environmental Tax, first 
revoked and then reintroduced in July 2004; (xv) the ECOWAS Community Levy; (xvi) a Special Tax on Consumption that was introduced on alcohol and t obacco in 1993; (xvii) [charges for Government 
Publications and Printed Matters purchased by users or importers;] and (xviii) a [Consumption Tax on 
Local Production created in 1966]. 
68. The ECOWAS Community Levy amounted to 0.5 per cent and was levied on all imports from 
non-ECOWAS countries.  As called for in the revi sed ECOWAS Treaty, this was a West African 
regional integration levy to promote financial autonomy and raise revenues for ECOWAS activities 
and institutions.  The levy was applied in accordan ce with ECOWAS Protocol A/P.1/7/96, approved 
by Resolution No. 67/V/97 of 31 December 1997.   
69. Responding to requests that Cape Verde eliminate all ODCs and bind such duties and charges 
at zero in the Schedule of Concessions and Commit ments on Goods, the representative of Cape Verde 
said that the application of the ECOWAS levy was not an internal affair of Ca pe Verde, and had been 
negotiated by all the Member-States of ECOWAS.  Consequently, Cape Ve rde was not in a position 
to eliminate this levy and bind it at zero.     WT/ACC/SPEC/CPV/4 
 Page 19 
 
 
 - Tariff rate quotas, tariff exemptions 
70. The representative of Cape Verde said that Ca pe Verde did not apply tariff rate quotas on 
imports and had no plans to introduce such quotas in the future.   
71. Tariff exemptions were provided to encourag e domestic economic ac tivity and facilitate 
infrastructure development in certain sectors, notab ly equipment for passenger transportation and car 
rental.  Air transportation companies were also exempt from duties for the importation of some 
equipment and spare parts.  Duly registered enterprises (tourist, industrial) applied for duty 
exemptions to the Directorate of Customs (see secti on on Industrial Policy, including Subsidies).    
72. Tariff exemptions were also permitted for the im portation of (i) goods donated to Cape Verde 
by international organizations; (ii) gifts offered to the Head of State, President of the National 
Assembly, and members of the G overnment; (iii) goods donated to religious missions recognized by 
the State; (iv) donations to the Red Cross, Carit as-Cape Verde and other hum anitarian organizations 
for disaster relief, reconstruction etc.; (v) goods destin ed for the use of Heads of State, dignitaries etc. 
on official visits to Cape Verde; (vi) goods im ported by Embassies, Consulates, Diplomatic Missions 
and their staff; (viii) luggage and personal effects brought in by passengers within permissible limits; 
(ix) staple food imports to meet the needs of Cape  Verde's population; (x) goods shipped by the Navy 
in their transit vessels; (xi) tourism and commerc ial documents; (xii) Flags and the State's seal; 
(xiii) ship-wreckage and ship debris; and (xiv) pr oducts destined for intern ational sports events 
(medals, trophies, pharmaceuticals, etc.).  
- Fees and charges for services rendered 
73. The representative of Cape Verde said that his Government had levied a General Emolument 
Tax of 9 per cent on the CIF value of im ported merchandise to cover administrative  charges.  This tax 
together with other fees and charges such as a Miscel laneous Tax for the recovery of minor charges, 
Storage, Tax, Special Storage Tax etc. had been  eliminated following the introduction of VAT in 
January 2004.  A Stamp Duty of CVE 100 (€ 0.91), applied to each import and export declaration, had 
also been revoked. 
74. All imports continued to be subject to a cust oms user fee equal to 1.04 per cent of the CIF 
value, pursuant to Ministerial Ordinance No. 71/78  of 14 October 1978 and as amended by Ministerial 
Ordinance No. 27/79 of 28 April 1979.  The new [draft]Customs Code provided the basis for the 
continuation of this customs users' fee.  Two per cent of the revenue from this fee was channelled into 
a general fund to finance improvements to buildings, equipment, vehicles, etc. used by the Customs WT/ACC/SPEC/CPV/4 
Page 20  
 
 Service.  Half of the remainder was used to pay the salaries of customs and police officials, and the 
other half was transferred to the State budget. 
75. Some Members stated that the ad valorem  customs user fee of 1.04 per cent on the CIF value 
did not appear to be consistent with Article V III of GATT 1994 and urged Cape Verde to review this 
fee.  The representative of Cape Verde replied th at the General Customs Directorate had collected 
information for a study on the actual costs incu rred by the customs authorities in providing the 
services rendered.  The study would establish the parameters for Cape Verde's customs user fees in 
accordance with Article VIII of the GATT 1994.  He did not exclude the possibility that the current 
1.04 per cent fee would be altered in the light of this study. 
- Application of internal taxes to imports 
76. The representative of Cape Verde said that, effective 1 January 2004, a number of fees, 
charges and internal taxes (such as the consumpti on tax, special consumption tax on alcohol and 
tobacco etc.) had been consolidated and replaced by Value Added Tax.  He confirmed that the Special 
Consumption Tax, Environmental Tax and VAT were  the only internal taxes applied to imports. 
77. Effective 1 January 2004, the Special Ta x on Consumption (STC) was applied on the 
products listed in the Annex to the Regulation on Special Consumption Taxes (Law No. 22/IV/2003 
of 14 July 2003, as amended by Law No. 37/IV/2003 of 31 December 2003 and Law No. 48/VI/2004 of 26 July 2004).  The STC was applied equally to  imports and domestic production at the point of 
sale in Cape Verde.  Table 5 enumerates the prod ucts subject to STC and the corresponding rates.  
78. In addition, Cape Verde levied an Environmenta l Tax to support environmental projects.  The 
Environmental Tax (established by Decree-Law No. 128/IV/95 of 27 June 1995) had been abolished 
with the introduction of VAT on 1 January 2004, but Law No. 46/VI/2004 of 12 July 2004 had reintroduced this tax.  The Environmental Tax a pplied to both imports a nd domestic production, and 
was levied on all non-biodegradable  wrappers made of metal, gl ass, plastic and other synthetic 
materials.  The tax amounted to 1 per cent of th e CIF value of goods imported in non-biodegradable 
packages and interior wrappings, and 10 per cen t on non-biodegradable packages and interior 
wrappings imported for packaging goods domestically .  The proceeds or revenues from this tax were 
transferred to the municipalities for environmental protection and basic sanitation works.  He added 
that the National Assembly was reviewing Law No. 46/VI/2004.   
79. The representative of Cape Verde said that his Government had undertaken major tax 
reforms.  As part of these reforms, the tax struct ure had been simplified with the introduction of the 
Value Added Tax (VAT) on 1 January 2004.  VAT was levied at a single rate of 15 per cent on goods  WT/ACC/SPEC/CPV/4 
 Page 21 
 
 
 and services.  VAT was computed using the destin ation principle, thereby exempting exports and 
taxing imports on the same basis as domestically-pr oduced goods and services.  The VAT taxable 
base on imports included customs duties and other a pplicable border fees.  All enterprises were 
subject to VAT as long as they undertook any taxabl e or import operation, and were residents or had 
an establishment or a representation in Cape Verde.   
80. The State did not pay VAT on operations in the exercise of its governmental authority.  As set 
out in the VAT Regulation Law No. 21/IV/2003 of 14 July 2003, all services provided by non-profit 
organizations were also exempt from VAT, as long as  their objectives were specifically described in 
the Law as being of a political, labour-union, relig ious, patriotic, humanitarian, philanthropic, 
recreational, sporting, cultural, environmental or of a civic nature. 
81. As for product-specific VAT exemptions, Cape Verde exempted all staple goods and certain 
agricultural inputs, enumerated in Table 6 (a) and Table 6 (b).  In addition, pursuant to Laws 
No. 21/IV/2003 and 23/IV/2003 of 14 July 2003, and Decree Law No. 48/2004 of 26 July 2004, certain domestic operations were exempt from VAT.   These exemptions were applicable to both 
imports and domestic production.  Ho wever, exemptions from VAT were  not automatic and had to be 
solicited.  Decree Law No. 22/2003 of 14 July 2003  set out the system for soliciting exemptions.  
Applicants submitted a form (MOD 108) annexed to  the Decree Law to the Finance Department 
(General Directorate of Contributions and Taxation).  All juridical persons including foreign nationals 
could apply for these VAT exemptions. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
82. The representative of Cape Verde said that as per Decree Law No. 3/99 of 1 February 1999, 
no quantitative import restrictions or quotas were curre ntly in effect in Cape Verde.  However, in 
accordance with the revised ECOWAS Treaty [and Decree Law No. 29/93 of 24 May 1993], some products were subject to international trade restri ctions.  Article 41 of the revised ECOWAS Treaty 
permitted measures to be taken to restrict or prohi bit imports for (i) national security considerations 
(laws and regulations); (ii) the control of arms, ammunition and other military equipment; 
(iii) the protection of human, animal or plant health; (iv) the protection of public morals; (v) the transfer of gold, silver and precious or semi-pre cious stones.  Raw diamonds could only be traded 
with countries that participated in the Kimberly  Process Certification System pursuant to Decree Law 
No. 47/2004 of 15 November 2004; (vi) the protection of Cape Verde's artistic and cultural treasures 
or property; and (vii) the control of narcotics, hazardous and toxic wastes , nuclear or radioactive 
products or any other material used in the devel opment or exploitation of nuclear energy.  Products WT/ACC/SPEC/CPV/4 
Page 22  
 
 subject to international trade restrictions or proh ibited in Cape Verde are listed in Tables 7 and 8 
respectively.   
Table 7:  Products subject to International Trade Restrictions
 
HS Number Description 
2401; 2402; 2403 Tobacco 
2844.10; 2844.20; 2844.30; 2844.40 and 
1844.50 Radioactive Products 
2844.10; 2844.20; 2844.30; 2844.40 and 
2844.50 Chemical Radioactive Elements and Radioactive Isotopes:  
 Precious Metals: 
7106.00  Silver 
7108.00  Gold 
7110.00  Platinum 
7110.21 and 7110.29 Palladium 
7110.31 and 7110.39 Radium 
7110.41 and 7110.49 Iridium 
7110.41 and 7110.49 Osmium 
7110.41 and 7110.49 Ruthenium 
8401. 00  Nuclear Material 
9301; 9302; 9303; 9307 Weapons 
9705. 00  Collections and specimens for zoology, botany, mineralogy, anatomy 
collections, or collections of a hist oric, archaeological, palaeontology, 
ethnographic or numismatic interest: 
9706. 00 6 Antiquities with more than 100 years. 
9306.10 Munitions 
 
83. His Government applied no quantitative limitations  or licenses to the goods listed in Table 7, 
though substantive criteria such as those related to safety, were applied in granting import permits for 
these products.  Government agencies were involve d in the importation of weapons and munitions 
(the Ministry of Defence and the Ministry of Ho me Affairs) and precious metals for monetary use 
(BCV).  The BCV used precious metals, including  gold and silver, as reserves or money and these 
restrictions were, in his view, covered by Article XX of the GATT 1994.  He confirmed that, except 
for tobacco, none of the goods subject  to international trade restrictions  were produced in Cape Verde.  
Tobacco production in Cape Verde was insignifi cant.  The importation of tobacco was done 
exclusively by a private company - Cape Verdean  Tobacco Company (Sociedad Cabo Verdiana de 
Tabaco) - under terms that had been established in a contract between the Company and his 
Government.  Cape Verde prohibite d the importation of nuclear and ra dioactive products or waste in 
accordance with international non-pro liferation treaties.  Other produc ts prohibited in Cape Verde are 
listed in Table 8.    WT/ACC/SPEC/CPV/4 
 Page 23 
 
 
 Table 8: Goods whose importation is prohibited in Cape Verde  
Goods whose importation is prohibited in Cape Verde 
1 Animals and animal products from foreign areas where there is epizooty .  
2 Elder tree berry.  
3 Unauthorized foreign lottery tickets or its fractions.   
4 Boxes or gathered bales and bundles, with the same mark and packed in one volume containing different 
or the same kind of goods, which are imported without declaration of the number and the total weight of the boxes or gathered bales.   
5 Cannabis Sativa L, known as "Indian Hemp".  
6 Essential oils, colouring matters and the like of a kind used to counterfeit wines.  
7 Imitations of coffee, with the designation of coffee.  
8 Imitations of postage-stamp, postmark and other postal stamps in use in Cape Verde  
9 Containers manufactured with terneplate packing goods other than mineral oils and, when empty or 
unassembled, are not consigned exclusively to companies which sell mineral oils.  
10 Books when counterfeited editions and fraudulent copies of literary and artistic works protected by law 
and international conventions.   
11 Medicaments of secret composition or not properly registered.   
12 Noxious medicaments and foodstuffs pernicious to public health. 
13 Goods with false factory marks, false trade marks or false origin or provenance, contravening laws and 
international agreements in effect.   
14 Goods brought by ships sailing in contravention of international conventions.  
15 Pornographic objects, pictures, books, printed pape rs, recorded films, drawings, stamps, written libel and 
publications, offensives to morals and public decency  
16 Plants and any of its parts coming from infected areas of phylloxera or of any other epiphytic disease .  
17 Roulettes and other gambling games without previous authorization.  
18 Foodstuffs containing saccharin.   
19 Products used exclusively for the distillation of alcohol or liquors and other products which the customs 
recognizes that they could have similar application in the manufacture of distilled or fermented alcoholic 
drinks, when expressly unauthorized  by law  
20 Wines and liquors with any geographical denomi nations legally defined or any others which can 
occasion mistakes about their real origin, when they are not produced  in the wine-growing areas known 
under those denominations, or with such denominations as "kind of", "type", "rival of", "superior to" and 
similar logos.  
21 Distilled alcoholic drinks which contain essences or chemical products such as: absinth, benzoic 
aldehyde, salicylic ethers, hyssop and other products recognized as noxious for human health.  
  
84. On import licensing, the representative of Cape  Verde said that a non-automatic licensing 
requirement had been introduced on all products  imported to and exporte d from Cape Verde in 
accordance with Ministerial Ordinances No.3/2004 a nd No. 4/2004 of 26 January 2004.  Travellers 
luggage and personal effects were exem pt from this licensing requirement.   
85. The General Directorate of Commerce under the Ministry of Economy, Growth and 
Competitiveness was responsible for regulatin g and implementing licensing procedures in 
Cape Verde.  To obtain the import licence, a licence form (reproduced in Ministerial Ordinance 
No. 13/2004 of 14 June 2004) had to be completed and submitted for approva l to the Department 
responsible for Trade on the island where the import ation or trading operation was to take place.  
There were no fees associated with the import licence.    WT/ACC/SPEC/CPV/4 
Page 24  
 
 86. Asked whether the granting of the licence was discr etionary, he replied that the granting of a 
licence was within the competence of the Genera l Directorate of Commerce in accordance with 
Article 6 of the Decree Law No. 51/2003.  The Gene ral Directorate of Commerce could delegate this 
authority to other entities, but these entities would remain under the general guidance of the Directorate in exercising their function.  A refusal  by the General Directorate of Commerce to grant a 
licence could be appealed to the Minister of Econo my, Growth and Competitiveness.  If this appeal 
was denied by the Minister, the matter could be brought to the Administrative Courts or Common 
Courts in Cape Verde.   
87. Some Members requested furt her information on the purpose and nature of the new non-
automatic licensing requirement, notably who would be  eligible to apply for the licence, the criteria 
employed in issuing licences, and whether Cape Verde intended to narrow the coverage of this 
licensing regime to a limited number of products of particular interest  or concern.  Cape Verde was 
also requested to complete the WTO Import Li censing Questionnaire for this measure.  The 
application of broad, non-automatic licensing require ments to substantially all trade needed to be 
justified in terms of specific WTO provisions  otherwise it would be deemed inconsistent inter alia  
with Article XI of the GATT 1994. 
88. In response, the representative of Cape Verde sai d that his Government was in the process of 
revising its licensing procedures.   
- Customs valuation 
89. The representative of Cape Verde said that the Brussels Definition of Value (BDV) currently 
served as the basis for the calculation of customs dut ies and other customs charges in line with Decree 
No. 45.790 of 3 July 1960.  With the BDV, the determination of the cu stoms value of imported 
merchandise was based on its "normal value".  Cape  Verde also applied reference or minimum import 
prices on poultry, as set out in Regulatory Decree No . 2/2002 of 2 August 2002.   He confirmed that 
Cape Verde envisaged the elimination of import reference prices or minimum import prices, as 
required by the WTO Agreement on the Implementa tion of Article VII of General Agreement on 
Tariffs and Trade 1994 (Customs Valuation Agreement).   
90. The new Customs Code, to be adopted by [July 2005] included valuation rules in Section IV 
(Customs Value of Goods).  He provided an Action Plan for compliance with the WTO Customs 
Valuation Agreement in document WT/ACC/CPV/14 a nd its subsequent revision.  As noted in the 
Action Plan, his Government was requesting a tr ansition period until January 2009 for the full 
implementation of the Customs Valuation Agreement.  In his view, this transition period was needed 
to establish the necessary institutions, endow the cu stoms administration with personnel, equipment,  WT/ACC/SPEC/CPV/4 
 Page 25 
 
 
 databases etc.  Customs personnel also required trai ning in modern practices to combat fraud, risk 
evaluation, investigations, post decl aration auditing etc. in order to prevent loss of customs revenues 
from under-invoicing and other fraud.  Technical and financial assistance from Members and the 
relevant international organizations was needed fo r the training of customs officials dealing with 
valuation as well as for the drafting of the new Re gulations and Interpretative Notes.  A Member 
requested Cape Verde to make reference to Article s 3 and 7 of the Customs Valuation Agreement and 
Decision 3.1 and paragraph 2 of Decision 4.1 of  the WTO Committee on Customs Valuation in its 
revised Action Plan. 
91. Disputes arising from customs valuation decisions were reviewed and decided by the 
Customs Technical Council, an administrative bod y including representatives of the Department for 
Public Administration and the private sector.  Judicial appeals of customs valuation decisions could be 
brought before the Fiscal and Customs Court, and c ould be further appealed to the Supreme Court of 
Justice of Cape Verde. 
92.  [In response to questions concerning elements  of the Customs Valuation Agreement already in 
place and its functioning, the representative of Cape Verde said that in accordance with the current 
legislative provisions, the right to appeal referred to in Article 11 of the Agreement stipulating that the 
importer had the right to appeal first to the administrative courts, and also to the Fiscal and Customs Courts, Common Courts or tribunals independent of the Government.  Thus, the right to appeal to an 
independent administrative tribunal was already in effect, as were the following other aspects of 
Cape Verde's customs regime: the protection of c onfidential information (Article 10) and a surety 
bond system (Article 13) provided for in [....] of the Draft Code; the publication of legislation, 
regulations and administrative decisions of genera l application on customs issues including valuation 
(Article 12), provided for in [....] of the Draft C ode.  The definitions provided in Article 15, the 
importer's right to a written explanation of how th e customs value was determ ined (Article 16), and 
provisions ensuring the precise implementation of Articles 9-13 related were contained in the new 
Customs Law which was slated for enactment during 2005.  To the extent not already provided for in law, the provisions of Articles 9-13 and 15-16 would implemented from the date of accession. 
93. The representative of Cape Verde requested that the Working Party grant a transitional period 
from the date of its accession to allow it to obtain and utilize technical assistance to assist in the full 
implementation of the obligations of the Agreement, in  particular those containe d in Articles 1-6, 7, 8, 
and 14.  Full implementation of the Agreement on Customs Valuation would be carried out gradually 
and progressively and would be completed, at the latest prior to 1 January 2009, in accordance with 
the timetable contained in Table 9 below.  He conf irmed that during the transition, Cape Verde would 
not be required to observe the provisions of Article 7.2(f) with respect to selected imports, thereby WT/ACC/SPEC/CPV/4 
Page 26  
 
 allowing for the application of minimum import values to be applied to imports of poultry covered by 
HS 0207.11 - 0207.14 for the purposes of customs valu ation during the transition period.  All other 
aspects of Article 7 would be observed from the date  of accession.  If such a transitional period were 
granted, Cape Verde's deviations from the provision s of the Agreement would be strictly limited to 
these Articles, and all other provisions of the Ag reement would be implemented for all imports. 
94. During this period, Cape Verde would ensure th at its regulations under current legislation in 
place and additional legislation implemented duri ng the transition concerning customs valuation 
would be applied on a non-discriminatory MFN basis to all imports.  Any changes made in its laws, 
regulations and practice during the transition period would not result in a lesser degree of consistency 
with the provisions of the Agreement on Customs Valuation than existed on the date of accession.  
Cape Verde would participate in the work of the Committee on Customs Valuation and would seek 
out all available technical assistance, including under Ar ticle 20.3 of the Agreement, to ensure that its 
capacity to fully implement the Agreement upon expiration of the transition period was assured.  The representative of Cape Verde presented an Action Pl an setting out details of the steps that still 
remained to be taken in order to achieve this objective and a timetable for each step (Table 9). 
Table 9:  Action Plan for Implementation of the Agreement on Customs Valuation
 
Action Implementation 
Date 
Legislative Implementation  
 Enactment of new Customs Law (drafted in first half of 2005): 
- Currency conversion notification requirement (Article 9)  
- Protection of confidential information (Article 10)  - Right of administrative ap peal and appeal of admini strative decisions to an 
independent tribunal (Article 11)  
- Publication of legislation, regulations and administrative decisions of general 
application on customs issues including valuation (Article 12)  
- Sureties for the release of merchandise (Article 13)  
- Definitions (Article 15)  - Importer's right to an explanation in writing from the customs administration 
concerning the determination of customs value (Article 16) 
- Prohibited forms of Valuation when tran saction value or transaction value of 
identical or similar merchandise is applicable  (Article 7(a) (b), (c), (d), (e) and (g)) 
- Establishment that the Annexes I, II and III are integral  parts of the Agreement 
(Article 14) with delayed implementation of provisions related to Articles 1-6, 7:2(f), and 8 
 
Training
:  Initial Seminar/Workshop on the prin ciples of the GATT/WTO Agreement of 
Value, by WTO Secretariat Completed or 
Upon Accession 
Training :  Additional Seminars and Workshops on the Customs Code: Adaptation and 
familiarization of the Customs Code, by the user.  
Training on post declaration or post dispatch auditing--Workshops/seminars  
 Preparation Customs Valuation Manual Prior to  
1 January 2006  WT/ACC/SPEC/CPV/4 
 Page 27 
 
 
 Action Implementation 
Date 
Training Technical training on determination of Customs Value: Course to train trainers for 
selected Customs functionaries identifie d as having the capacity to teach. 
 
Training on risk evaluation:  Workshops/seminars presented by specialists in "risk 
evaluation". Prior to  
1 January 2007 
Creation of a technical information system including a reference data base on the value of identical or similar goods:  Data base for the evaluation of identical or similar 
merchandise to implement usage of identical and similar merchandise transactional value 
(methods 2 and 3 applied sequentially).  
Evaluation of the Customs Code implementation. Prior to  
1 January 2008 
Additional Legislative Implementation, e.g., Regulations to the Customs Law, activating the provisions of the Customs La w for the following measures: 
 
- Transaction valuation (Article 1) 
- Transaction value of iden tical goods (Article 2) 
- Transaction value of similar goods (Article 3) 
- Imputed value (Article 5) 
- Computed value (Article 6) - Fallback method, with elimination of use of minimum import values 
(Article 7:2(f) )for poultry 
- Additions to the price paid or payable (Article 8)  
Adoption of  Decision 3.1 of the Committee on Customs Valuation on the Treatment of 
Interest Charges in the Customs Value of Imported Goods  
 
Adoption of paragraph 2 of Decision 4.1 of the Committee on Customs Valuation on the Treatment of Interest Charges in the Customs Value of Imported Goods and the 
Valuation of Carrier Media Bearing Software, for Data Processing Equipment. Prior to  
1 January 2009 
Full implementation of Agreement on Customs Valuation Prior to  
1 January 2009 
 
95. The representative of Cape Verde stated that legislation on the valuation of imports for 
customs and taxation purposes conforming to th e requirements of the Agreement on Customs 
Valuation would be enacted prior to Cape Verd e's accession to the WTO, but that some of the 
provisions would not immediately go into effect.  Cape Verde would progressively implement the 
Agreement on Customs Valuation in accordance with  the Action Plan in Table 9, and with the 
understanding that during this period the scope of implementation of other aspects of the Agreement, 
as described in paragraphs [92 a nd 94], would be applied by Cape Verde.  Full implementation would 
start from 1 January [2007][2009].  The Working Party took note of these commitments.] 
- Rules of origin 
96. The representative of Cape Verde said that th e Preliminary Instructions on Customs Tariff, 
Annexed to Decree No. 45.790 of 3 July 1960, outline d Cape Verde's general non-preferential rules of 
origin.  The Preliminary Instructions were being re vised, the new provisions on rules of origin would 
be contained in Section III (Articles 20 – 24) of the new Customs Code to be adopted [in July 2005].  WT/ACC/SPEC/CPV/4 
Page 28  
 
 The new provisions had been drafted to ensure conformity with the WTO Agreement on Rules of 
Origin.   
97. As a Member of ECOWAS, Cape Verde also followed the ECOWAS Protocol on rules of 
origin, which he considered to be consistent with  the principles set forth in the WTO Agreement on 
Rules of Origin.  According to the ECOWAS prot ocol, origin was determined on the basis of the 
wholly obtained, substantial transf ormation, or value-added criterion. 
98. A Member sought confirmation that Cape Verde would revise its Customs Law to incorporate 
the requirements of Article 2(h) and Annex II, pa ragraph 3(d) of the WTO Agreement on Rules of 
Origin, i.e. that for non-preferential and prefer ential rules of origin, r espectively, the customs 
authority would provide within 150 days, upon the requ est of an exporter, impor ter or any person with 
a justifiable cause, an assessment of the origin  of the import and outline the terms under which it 
would be provided, and that any request for such an assessment would be accepted even before trade 
in the goods concerned began.  The representative of Cape Verde replied that Cape Verde would 
include provisions consistent with the WTO Agreem ent on Rules of Origin in the new Customs Code.  
99. Asked whether Cape Verde would consider the European Community as one entity for origin 
purposes, the representative of Cape Verde noted th at the WTO work programme on rules of origin 
was ongoing and currently the provisions of Annex II of the Agreement on Rules of Origin were in 
effect.  In the absence of specific WTO principl es and provisions on this issue, Cape Verde would 
defer a decision on this matter.  Cape Verde woul d also analyze this issu e within the context of 
ECOWAS regional integration.    
- Other customs formalities 
100. The representative of Cape Verde said that the owner or consignee of  imported goods could 
initiate procedures for customs clearance before the arrival of merchandise in Cape Verde.  Imports 
and exports of merchandise for personal use or personal gifts which were not of a commercial 
character and valued at less than CVE 50,000 (€ 454)  were subject to a simplified declaration.  All 
other merchandise was subject to a more detailed declaration, including information on the product 
characteristics (weight, size, quantity), tariff type, co untry of origin, country of exportation, freight, 
destination, and value.  For imports, the decl aration had to be accompanied with relevant 
documentation such as the certificate of origin, commercial invoice, sanitary and phytosanitary 
certificates, transportation (air or sea) and insura nce certificates, the single administrative document 
(SAD), etc.  The import declaration required approv al by the General Directorate of Commerce when 
the merchandise was valued at more than CVE 100,000 (€ 907).   WT/ACC/SPEC/CPV/4 
 Page 29 
 
 
 101. Asked about the time needed to clear goods  through customs, the representative of 
Cape Verde said that the processing of a customs de claration was undertaken within 48 hours of its 
submission, after which the owner or consignee of  the imported goods would be required to pay the 
duties and impositions due within ten days.  A fine  was imposed for delayed or non-payment of the 
impositions due.  Following the payment of the customs duties and unloading and conveyance fees, 
the merchandise was to be removed from the warehou se within 30 days for air transported cargo, and 
90 days for cargo transported by sea.  Non-compliance could lead to a report giving official notice and 
initiation of procedures for public sale of the consignment.  
- Preshipment inspection 
102. The representative of Cape Verde said that Cape Verde did not employ any mandatory pre-
shipment inspection scheme.      
103. The representative of Cape Verde confirmed that  if in the future Cape Verde engaged the 
services of a preshipment inspection enterprise, Cape Verde would put into place a preshipment inspection system programme in conformity w ith the WTO Agreement on Preshipment Inspection 
and would ensure that preshipment inspection ente rprises operating on its behalf complied with the 
provisions of the WTO Agreements, including th e Agreements on Customs Valuation, Import 
Licensing Procedures, and Technical Barriers to Trad e.  Provision would be made that decisions by 
such firms could be appealed by importers in th e same way as administrative decisions taken by the 
Government of Cape Verde.  Any preshipment insp ection regime would be temporary.  Cape Verde 
would also give due consideration to the reco mmendations of the Working Party on Preshipment 
Inspection of 2 December 1997 and subsequent recomme ndations issued by that Working Party.  The 
Working Party took note of these commitments. 
- Anti-dumping, countervailing duties, safeguard regimes 
104. The representative of Cape Verde said that Decree-Law No. 46828 and Decree-Law 
No. 46829 of 5 January 1966, modified by Decree-L aw No. 578/70 of 24 November 1970, set out the 
anti-dumping and countervailing duties regime in Cape Verde.  Since 1975, no cases had been filed or 
investigated in Cape Verde, as these Laws were obsol ete and would have to be revised to comply with 
the relevant WTO provisions.   
105. As promulgated in Decree Law No. 3/99 of 1 Fe bruary 1999, a safeguard type provision had 
been included in Article 3 of the Trade Libera lization Law.  This provision provided for the 
application of safeguard measures when the importation of a good caused, or threaten to cause, serious damage to the national economy or to public health.  Cape Verde appl ied this safeguard type WT/ACC/SPEC/CPV/4 
Page 30  
 
 measure on poultry from all countries.  He added that  Cape Verde intended to  develop and revise its 
safeguard measures regime to comply with the WTO Agreement on Safeguards.      
106. The representative of Cape Verde confirmed th at Cape Verde would apply safeguard, anti-
dumping, or countervailing duty measures only after notifying and implementing laws in conformity 
with the provisions of WTO Agreements on Safe guards, the Implementation of Article VI of the 
GATT, and on Subsidies and Countervailing Measures,  and that after accession Cape Verde would 
apply any such measures only in conformity with the relevant WTO provisions.  The Working Party 
took note of these commitments. 
B. EXPORT REGULATION  
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
107. The representative of Cape Verde said that Cape Verde applied no export duties.  The 
registration and licensing requirements for engaging in exportation were identical to those for imports.  
Exported goods complied with formalities on excha nge operations and with all quality requirements, 
rules of origin or other norms requi red by law or by international accord  subscribed to by Cape Verde. 
- Export restrictions 
108. The representative of Cape Verde said that  in accordance with Decree-Law No. 151/87 of 
26 December 1987, Cape Verde no longer applie d quantitative restrictions on exports nor did 
Cape Verde participate in any voluntary export r estraints or orderly marketing arrangements.   
Cape Verde did not apply minimum export prices on any product.  
109. Cape Verde prohibited the exportation of en dangered flora or fauna covered by the 
Washington Convention (CITES), even  though Cape Verde was not a si gnatory to this Convention.  
The prohibition was covered by the provisions of  Law No. 86/IV/93 of 26 July 1993, and was 
enforced by customs officers in Cape Verde.  Fo r flora and fauna not exp licitly prohibited, licenses 
were issued by the Ministry of Enviro nment, Agriculture and Fisheries.  
- Export subsidies 
110. The representative of Cape Verde said that Cape Verde had no export financing programs.  
An import duty drawback system had been cr eated by Decree Law No. 32115 of 7 July 1942, 
providing for the full or partial reimbursement  of import duties on merchandise used in the 
manufacture of products subsequently  exported.  The duty drawback la w, though legally still in effect,  WT/ACC/SPEC/CPV/4 
 Page 31 
 
 
 had in practice been abrogated and was no longer used actively, as other more favourable regimes 
(e.g. Franc/Free Zones) had been introduced sub sequently. He confirmed that no duty drawback 
programs were applied to agricultural products.  A duty drawback scheme had been created for olive 
oil, vegetable oil for human consumption, meta l sheets, and cardboard destined for the fish 
conservation industry.  However, th is programme had been discontinued.   At present, Cape Verde did 
not envisage creating any new duty drawback law.     
111. Law No. 92/IV/93 of 15 December 1993 and Decr ee Law No. 108/89 of [...] provided fiscal 
and customs incentives for the export and re-export of goods and services.  The fiscal incentives 
included a five year reduction in contributions and ta xes on profits.  This five year period could be 
extended on a year-by-year basis for a maximum of ten years.  The customs incentives included [duty 
drawback] and duty exemptions on intermediate produc ts and raw materials (except petrol) used in 
the production of exported goods.  Exporters im porting merchandise, including raw materials, 
destined for re-export could do so through a suspensi on of the customs regime.  Customs duties, fees 
and charges, and other taxes on imported goods that had subsequently been exported, incorporated as 
raw materials in exports, or used in rendering export services, were refunded upon request within 
120 days from the date of export or re-export.   
112. A Member sought further information on the operation of the duty-drawback scheme, in 
particular on how Cape Verde ensured that the inputs exempt from import duties under these schemes 
were used in the production of exports, and how  import duties refunded through these programs did 
not exceed the amount of duties paid or payable.  In response, the representative of Cape Verde  
confirmed that import duties refunded through the duty drawback scheme did not exceed the amount 
of duty paid or payable.  He considered the duty drawback scheme to be consistent with the WTO 
Agreement on Subsidies and Countervailing Measures (SCM Agreement).   
113. A Member requested exhaustive information on the incentives and eligibility criteria for the 
trade promotion programs operated by CAPEV ERDE Investments (formerly PROMEX). The 
representative of Cape Verde replied that the Centre for the Promotion of Tourism, Investment and Exports (PROMEX) and its successor CAPEVERDE I nvestments promoted exports and re-exports.  
CAPEVERDE Investments identified local products or enterprises with export potential; organized 
seminars, conferences and training; participated in trade fairs; researched on potential export markets; 
and supplied market data to interested entities.   
114. Merchandise could be stored in customs bonde d warehouses with customs duties and taxes 
pending.  Two types of warehouses existed in Ca pe Verde, the storage warehouses for commercial 
needs and the industrial warehouses for industrial need s.  In addition, goods could be "temporarily WT/ACC/SPEC/CPV/4 
Page 32  
 
 admitted" for re-export, either unchanged or w ith active improvement.  He confirmed that goods 
subject to the "temporary admission" regime were free of customs duties and had to be exported.  
Temporary exports were also permitted whereby the goods were exported for re-import either 
unchanged or with passive improvement.  
115. The representative of Cape Verde agreed that comprehensive information on all subsidies and 
incentives, including those that were prohibited s ubsidies under the provisions of Article 3 of the 
SCM Agreement, needed to be pr ovided in order to address them in  the context of Cape Verde's 
current LDC status, and the understanding that Ca pe Verde would lose this LDC status within 
three years.  Transitions for any measures not cons istent with the SCM Agreement would need to be 
agreed to in the Working Party.  
C. INTERNAL POLICIES AFFECTIN G FOREIGN TRADE IN GOODS  
- Industrial policy, including subsidies 
116. The representative of Cape Verde confirmed that  the legislative basis for the provision of 
subsidies comprised (i) the Foreign Investment Law No. 89/1V/93 of 13 December 1993; (ii) Law 
No. 92/IV/93 of 15 December 1993; (iii) The In dustrial Statute, Decree Law No. 108/89 of 
30 December 1989; (iv) the Tourism Utility La w [No. 55/VI/2005 of 10 January 2005 and Law 
No. 42/IV/92 of 6 April 1992]; (v) Law No. 99/IV/ 93 of 31 December 1993; and (vi) Decree Laws 
No. 25/94 and 26/94 of 18 April 1994.  Subsidies aimed at promoting investment and boosting exports.  He confirmed that no progr am conferred benefits on the basis of local content requirements.  
His Government was in the process of reviewing its subsidies to redress any inconsistencies. 
117. Cape Verde's industrial policy focussed on e xport-led growth and development of the 
industrial and private sector.  Apart from fiscal or cu stoms benefits, other incentives provided for in 
Cape Verde's subsidies regime were for the purc hase of land for the construction of [factories]; 
incentives connected with technological or industrial innovation, professional training of workers and 
reinvestment; and incentives connected with decentra lization i.e. the movement of industries within 
the national territory of Cape Verde.  As a potential new incentive measure, his Government was 
considering automatic or simplified registration fo r industrialists and their import operations.    
118. Certain domestic economic sectors and activiti es were supported through incentive programs, 
financial assistance, access to cred it and the supply of equipment.  The fisheries sector was assisted 
through the Fishing Development Fund (FDP) pursuant to Decree Laws No. 25/94 and 26/94 of 18 April 1994.  The support provided by the FDP included fiscal and customs exemptions, preferential credits, grants or subsidies.  Incentives accorded to the fisheries sector had amounted to  WT/ACC/SPEC/CPV/4 
 Page 33 
 
 
 about CVE 90 million during 1995 to 2001.  Assi stance was only provided to Cape Verdean 
companies, on submission and approval of a form and contract with the FDP.     
119. In the tourism sector, the Tourism Utility Law [No. 55/VI/2005 of 10 January 2005 and Law 
No. 42/IV/92 of 6 April 1992] provided fiscal benefi ts to companies and customs duty exemptions for 
equipment and raw materials imported for the establishment or refurbishment of tourist facilities. The Minister of Finance and Planning and the Minister of Economy, Growth and Competitiveness were 
jointly responsible for monitoring  the introduction and provision of  these benefits.  He added that 
financial institutions also benefited from fiscal exemp tions.  Investors in this sector had to apply for 
authorization from the Ministry of Finance and Planning in accordance with Decree Law 
No. 43/III/88 of 27 December 1988, as amended by Law No. 32/V/97 of 30 June 1997 and 
Decree Law No. 66/97 of 3 November 1997.  Incen tives to the transportation industry - maritime, 
road and air transportation - and the telecommuni cations sector (Law No. 72/95) had also been 
implemented by Cape Verde.   
120. The Foreign Investment Law No. 89/IV/93 of 13 December 1993 and Regulatory Decree 
No.1/94 of 3 January 1994 outlined the authori zation procedures and conditions governing foreign 
direct investment.  Pursuant to the Industrial  Statute (Decree Law No. 108/89 of 30 December 1989), 
registered industrial enterprises could benefit from certain incentive schemes, notably a three-year tax 
exemption on revenues generated.  Subsidies grante d to industrial activities were not contingent on 
export performance or local content criteria, but  their contribution to Cape Verde's economic 
development would be evaluated.  
121. The representative of Cape Verde considered Cape Verde's subsidy programs to be in 
conformity with the provisions of the WTO Agreement on Subsidies and Countervailing Measures.  In follow-up to an IMF study, Cape Verde intende d to undertake a further study on its industrial 
policies.  Reforms could be undertaken should the studies recommend the amendment of existing laws 
and regulations on subsidies.   
122. [The representative of Cape Verde confirmed th at Cape Verde would administer its subsidy 
programmes, including those provided for in (i) the Foreign Investment Law No. 89/1V/93 of 
13 December 1993; (ii) Law No. 92/IV/93 of 15 Dece mber 1993; (iii) The Industrial Statute, Decree 
Law No. 108/89 of 30 December 1989; (iv) the Tourism Utility Law [No. 55/VI/2005 of 
10 January 2005 and No. 42/IV/92 of 6 April 1992]; and (v) Law No. 99/IV/93 of 31 December 1993, 
in full conformity with the WTO Agreement on Subsidies and Countervailing Measures, including 
Article 27.2.  All necessary information on such  programmes would be notified to the Committee on 
Subsidies and Countervailing Measures in accordan ce with Article 25 of the Agreement upon entry WT/ACC/SPEC/CPV/4 
Page 34  
 
 into force of Cape Verde's Protocol of Acces sion.  The Working Party took note of these 
commitments.] 
- Technical barriers to trade, standards and certification 
123. The representative of Cape Verde said that the TBT-related laws and re gulations dated back 
to before the Independence of Cape Verde in 1975, and that there we re at present no updated 
framework legislation, technical regulations, or standards, nor were there any specific plans to 
establish new technical regulations or standards at th is stage.  Consequently, without the legislative 
and institutional means, Cape Verde did not apply any technical regulations or standards for either 
domestic or imported goods.  Howe ver, Cape Verde would recogni ze products certified in other 
countries provided the certification was valid and was from an authorized certifying body.  He added that there were currently no safety regulations ad ministered in Cape Verde as part of consumer 
protection programs.  Although Law No. 88/V/99 of 31 December 1998 approved the legal regime for 
consumers' protection and defence, the National Consumption Council envisaged in the Law was yet 
to be regulated and created.   
124. Following the submission of the TBT checklis t (WT/ACC/CPV/6), and in accordance with 
the Action Plans circulated in document WT /ACC/CPV/11 and Revision 1, Cape Verde had 
established an Enquiry Point for TBT matters within  the Trade Policy/WTO Unit of the Ministry of 
Economy Growth and Competitiveness (Resolution No. 37/2003 of 31 December 2003).  For the time 
being, the contact details of the Enquiry Point we re "the Office of Minister of Economy Growth and 
Competitiveness, P.O Box No. 15, Praia, Republic of Cape Verde; Tel: (238) 260 76 11/12; 
Fax: (238) 261 72 99; and Em ail: correiafm@yahoo.com or alcidiaa@gov1.gov.cv."    
125. He stressed the importance of technical and financial assistance to build Cape Verde's 
capacity on TBT issues and to comply with the prov isions of the TBT Agreement.  Assistance was 
required in several areas, including in setting up a facility for prior publication and public comment of 
all TBT requirements, and for assessing Cape Verde' s needs in the development and application of 
technical regulations in accordance with th e provisions of the TBT Agreement.   
126. The representative of Cape Verde confirmed that his Government would comply with the 
transparency and other general requirements of the TBT Agreement as part of its accession process.     
- Sanitary and phytosanitary measures 
127.  The representative of Cape Verde said th at existing sanitary and phytosanitary (SPS) 
measures were applied and regulated on the basis of Decrees Nos.  62/89 and 63/89 of  WT/ACC/SPEC/CPV/4 
 Page 35 
 
 
 14 September 1989, Decree-Law No. 89/92 of 16 July 1992, Legislative-Decree No. 9/97 of 
8 May 1997, Decree-Law No. 26/97 of 19 May 1997, Regulatory Decree No. 15/97 of 
3 November 1997, and Ministerial Ordinance No. 55/97 of 9 September 1997.  Resolution No. 57/97 
of 29 December 1997, Decree-law No. 74/97 and Decree-law No. 75/97 of 29 December 1997 had 
been revoked by Decree Law No. 8/2002 of 25 Fe bruary 2002.  His Government intended to 
introduce new science-based legal requirements on food safety, animal and plant health [by 
1 January 2007]. 
128. Cape Verde was a member of the WHO Codex Alimentarius Commission and the 
International Plant Protection Convention (IPPC).  Cape Verde adopted and applied Codex and IPPC 
standards.  He believed these sta ndards provided an acceptable level of  protection in Cape Verde.  
Cape Verde was in the process of adopting standa rds and becoming a member of the International 
Office of Epizootics (OIE).   
129. Cape Verde was also in the process of crea ting an enforcement body for the oversight of 
quarantine and SPS measures.  A regulatory agency  for food and pharmaceuticals (ARFA – Agência 
Reguladora de Produtos Farmacêutic os e Alimentares) was being cr eated to regulate the food and 
drugs sector.  An enquiry point for SPS measures in Cape Verde was in the process of being 
established in the Ministry of the Environment, Ag riculture and Fisheries.  However, for the time 
being, the contact details of the Enquiry Point on SPS issues were "the Office of Minister of Economy 
Growth and Competitiveness, P.O Box No. 15, Prai a, Republic of Cape Verde; Tel: (238) 260 76 
11/12; Fax: (238) 261 72 99; and Email: co rreiafm@yahoo.com or alcidiaa@gov1.gov.cv." 
130. As outlined in the SPS check-list (WT/ACC/CPV/ 6) submitted by Cape Verde, further work 
needed to be undertaken to ensure compliance wi th the SPS Agreement.  Additional efforts were 
needed to meet the transparency obligations of  the SPS Agreement; draft legal instruments in line 
with Articles 2.2, 3.3 and 5.2 of the SPS Agreemen t, establishing animal and plant health, and food 
safety regulations to be based on scientific eviden ce; and to draft legislation on the equivalence 
provisions of the SPS Agreement.  Provisions of the SPS Agreement relating to non-discrimination, 
regional conditions, control, inspection and approval procedures also needed to be met.  In light of the 
legal, infrastructural, financial and technical constr aints faced by Cape Verde, and as indicated in the 
Action Plan (WT/ACC/CPV/10 and Rev.1), he stated that Cape Verde would need a transition period 
until 1 January 2010 to ensure full conformity with  the SPS Agreement.  He stressed the importance 
of technical assistance to be provided during the period of transition.    WT/ACC/SPEC/CPV/4 
Page 36  
 
 - Trade-related investment measures 
131. The representative of Cape Verde stated that Cape Verde did not apply any measure that 
could be construed as a prohibited TRIM under the WTO Agreement on Trade-Related Investment 
Measures.   
- State-trading entities 
132. The representative of Cape Verde said that produc ts such as fuels and lubricants, tobacco and 
chemical-pharmaceutical products were subject to a special import regime and were imported under 
an exclusive regime by select enterprises, na mely, Shell and ENACOL, Cape Verdean Tobacco 
Company, and EMPROFAC.  Weapons and munitions were imported exclusively by the Ministries of 
Defence and Home Affairs.  In accordance with Decree Law No. 29/93 of 24 May 1993 and 
Decree Law No. 50/2003 of 24 November 2003, preci ous metals and gold for monetary use were 
imported only by the Central Bank of Cape Verde.  
133. Shell and ENACOL were private enterprises with concession rights in the importation and 
distribution of petroleum derivatives.  Both co mpanies purchased fuels and lubricants in the 
international market and sold petroleum products dom estically either through retail outlets or directly 
to airline and shipping interests.   He noted that ENACOL and Shell did not enjoy special privileges, 
exclusive rights or monopoly rights in the importation of fuels and other petroleum products.  
134. Cape Verdean Tobacco Company (Sociedade Caboverdiana de Tabacos) was a private 
company with exclusive rights for the importation, production, commercialization and wholesale 
distribution of tobacco.  These rights or concessions had been bestowed to th e Cape Verdean Tobacco 
Company under the terms of a contract with hi s Government, published in the Official Bulletin 
No. 20, II Series of 20 May 1999.  He added that tobacco production in Cape Verde was insignificant 
and domestically produced tobacco was not used in industrial production. 
135. The representative of Cape Verde considered EMPROFAC, a monopoly with exclusive 
authority to import and distribute pharmaceuticals in Cape Verde, the only enterprise that would fall 
within the scope of Article XVII of the GATT 1994 .  His Government had created EMPROFAC to 
ensure citizens' access to basic medicines.  EMPROFAC had exclusive rights to purchase 
domestically-made products from INPHARMA.  EM PROFAC sold pharmaceuticals imported or 
bought from INPHARMA to hospitals, the Directorat e-General of Pharmacy and private pharmacies.  
EMPROFAC determined the quantity of imports and set prices on an annual basis based on historic 
information and in consultation with the Director ate-General of Pharmacy and other purchasers.  
EMPROFAC imports had amounted to CVE 505,120, 500 (€ 4.58 million) in 1999, CVE 602,285,000  WT/ACC/SPEC/CPV/4 
 Page 37 
 
 
 (€ 5.46 million) in 2000, and CV E 588,614,520 (€ 5.34 million) in  2001.  Purchases were made 
through a tendering process and an invitation for bids from foreign suppliers.  Although EMPROFAC 
had not concluded any long-term contracts for purcha ses, the enterprise generally resorted to the same 
suppliers every year.  Comments by the public on EM PROFAC's operations could be directed to the 
Inspector General of Economic Activities or to the Directorate-General of Pharmacy responsible for 
overseeing the pharmaceutical sector.  His Government was in the process of privatising 
EMPROFAC.  The issue of whether EMPROFAC would retain its exclusive importation and 
distribution authority was also under consideration. 
136. The importation of rice, corn, sugar and wheat flour were no longer subject to State trading.  
The Public Stock Provisioning Enterprise was no l onger in business.  The import regime for these 
products was set out in Decree Law No. 29/2 002 of 9 December 2002 and Ministerial Ordinance 
No. 6/2004 of 16 February 2004.  
137. He stated that Cape Verde would prepare and submit a notification on State trading practices 
under Article XII of the GATT 1994 at the earliest opportunity.  Any entity granted exclusive import 
rights in the future would also be notified to the WTO.  
- Free zones, special economic areas 
138. The representative of Cape Verde said that  Decree Law No. 18/2000 of 27 March 2000, Law 
No. 83/V/98 of 21 December 1998, and Decree Law No. 48/99 of 2 August 1999 authorized the establishment of a Commercial Franc (Free) Zone, which was defined as a duty free import and export 
area where permanent trade fairs could be held.   However, Cape Verde's Commercial Franc Zone 
was not yet fully operational, and had so  far only hosted occasional trade fairs. 
139. Cape Verde had also designated "free enterp rises" or "franc enterprises" benefiting from 
special fiscal and customs incentives under Law No . 99/IV/93 of 31 December 1993 and pursuant to 
Decree Law No. 36/2003 of 29 September 2003; Re gulatory Decree No. 6/99 of 21 June 1999; Law 
No. 50/III/89 of 13 July 1989; Legislative Decree  No. 19/97 of 22 December 1997; Resolution 
No. 43/93 of 31 August 1993; and Resolution No. 3/2004 of 23 February 2004.  The Industrial Zone of Lazareto had been created especially for the se tting up of free enterprises.  Free enterprises could 
also be established elsewhere in Cape Verde, a nd would continue to benefit from the earmarked 
incentives provided for under the Law.  Any legall y established national or foreign enterprise was 
eligible for the status of free enterprise, as the La w stated that "all enterprises, producing or trading 
goods and services, solely for export or sale to othe r free enterprises installed in Cape Verde, can 
apply for the free enterprise status."  In order to be designated and registered as a free enterprise, the 
entity applied to the Ministry of  Finance, Planning and Regiona l Development through CAPEVERDE WT/ACC/SPEC/CPV/4 
Page 38  
 
 Investments.  Upon approval, CAPEVERDE Investme nts issued a certificate of free enterprise in 
accordance with the provisions of Annex 2 of the Law No. 99/IV/93. 
140. The fiscal incentives for "free enterprises" included the total exemption from all taxes on 
profits and dividends distributed for ten years.  After ten years, these taxes were not to exceed 
15 per cent of the profits.  Free enterprises were also  exempt from indirect taxes and other levies such 
as the stamp tax or notary and registration fees.  Free enterprises did not have to declare [capital 
gains][realization of stock capital].  Customs incen tives included the exemption of all border taxes, 
duties, and charges on imported goods used directly  by the free enterprise, such as construction 
materials, machinery, equipment, in struments, accessories, fuels and lubricants (with the exception of 
petrol), cargo and transportation materials.  Raw materials and intermediate products used in goods 
exported by a free enterprise could be imported through a suspension of the customs regime.  
Exported products manufactured or re-exported by free enterprises were  exempt from customs duties.  
Free enterprises could also contract foreign workers. 
141. In response to a query, the representative of Ca pe Verde confirmed that the Ministry of 
Finance and Planning could authorize free enterprise s to sell up to 15 per cent of the preceding year's 
production in the local market.  Goods destined for the local market were s ubject to the applicable 
duties, taxes and other charges.   
142. A Member urged Cape Verde to review its po licies related to free zones, and questioned  
whether the criteria for free enterprises were c onsistent with the WTO Agreement on Subsidies and 
Countervailing Measures.  In reply, the representativ e of Cape Verde said that, applied by an LDC, 
the criteria would in his view be in compliance w ith the provisions of the Agreement on Subsidies and 
Countervailing Measures.  Nevertheless, as Cape Verde's LDC status was set to expire, his 
Government was committed to prepare a plan for the gradual elimination of prohibited subsidies.   
- Government procurement 
143. The representative of Cape Verde said that the Directorate General for State Property solicited 
bids and oversaw the purchase of goods and servic es for all government departments.  Tendering 
procedures were regulated by Decree-Law No. 31/94 of 2 May 1994.  Generally, construction 
contracts were awarded after a public bidding process had taken place.  The contract was awarded to 
the most "advantageous" proposal, taking several factors into account, including the price, timetable 
for execution of the project, technical specifications, a nd other factors of special interest to the public.  
He confirmed that his Government did not give preference to local goods and services in its government procurement practices.  WT/ACC/SPEC/CPV/4 
 Page 39 
 
 
 144. A Member invited Cape Verde to particip ate in the WTO Agreement on Government 
Procurement as an observer as a prelude to future participation as a Member to this Agreement.  
Noting that participation in this Agreement w as optional for WTO Members, the representative of 
Cape Verde said that his Government would expl ore the advantages and disadvantages of joining the 
Agreement on Government Procurement. 
- Transit 
145. The representative of Cape Verde said that Chapter VIII (Articles 215 – 220) of the new 
Customs Code [to be adopted by July 2005], include d provisions on the regulation of trade in transit 
that, in his view, were in conformity with Article  V of General Agreement on Tariffs and Trade 1994.  
Cape Verde was a member of the World Cust oms Organization (WCO) and was consulting and 
seeking technical assistance from the WCO on the regulation of trade in transit. 
146. As an ECOWAS Member, Cape Verde was a si gnatory to the Convention relating to Road 
Transit of merchandise between ECOWAS Member  States of 29 May 1982, and the Additional 
Convention A/SP.1/5/90 of 30 May 1990 that instituted a m echanism within the ECOWAS 
Community to guarantee the inter-State road transit of merchandise.   
- Agricultural policies 
(a) Imports   
147. The representative of Cape Verde said that the Government Department responsible for 
Agriculture, Forestry and Livestock could impose quantitative restrictions or prohibitions on the 
import of vegetables, livestock and other products on the grounds of  health and public safety.  SPS 
measures were applied, and food imports needed to meet "Codex" standards.  Imported agricultural or 
animal products were accompanied by a certifi cate of origin.  Based on an inspection, the 
Cape Verdean authorities issued a certificate to indi cate that the products did not constitute a risk to 
Cape Verde.  Imported food prod ucts had to be accompanied by information on the date of 
manufacture and the estimated shelf-life, as well as their composition, trademark and manufacturer's 
name, when such information was justified.  
(b) Exports 
148. The representative of Cape Verde said that Ca pe Verde prohibited the export of endangered 
flora or fauna covered by the International C onvention on Endangered Species of Flora and Fauna 
(Washington Convention).  His Government did not provide any credits, credit guarantees or insurance programs for agricultural exports. WT/ACC/SPEC/CPV/4 
Page 40  
 
 (c) Internal policies   
149. The representative of Cape Verde said that the agricultural sector played an important role in 
the national economy, contributing about 11 per cent of the GNP and employing nearly 20 per cent of 
the labour force in 2000.  The import of some agricultural inputs was exempt from customs duties and taxes to support domestic producers.  Tariff exempti ons were available for breeding livestock, seeds 
and plants for agriculture, fertilizers and pesticides.   
150. Information concerning domestic support and e xport subsidies in the agricultural sector was 
circulated in document WT/ACC/SPEC/CPV/1 and Revision 1 providing information for the years 
1998, 1999, 2001, 2 002 and 2003.  He identified "Green B ox" support as expenditure on research, 
information dissemination through extension and ad visory services, and infrastructural services that, 
in view of the limited water resources in Cape Verde, served both environmental and agricultural 
purposes.  Funding was also provided for the developm ent of agriculture and livestock; reforestation; 
an annual survey on agriculture production; and the payment of salaries for fo rest rangers and similar 
personnel.  Salaries and wages accounted for a signi ficant proportion of Cape Verde's expenditure on 
domestic support.  Government e xpenditure for the support and development of agriculture in 
Cape Verde amounted to about CVE 56 0 million (€5 million) annually.   
151. The representative of Cape Verde confirmed that Cape Verde did not provi de any agricultural 
export subsidies. 
152. [Cape Verde's commitments on agricultural tari ffs and domestic support and export subsidies 
for agricultural products are contained in the Sc hedule of Concessions a nd Commitments on Goods 
(WT/ACC/CPV/[...]) annexed to Cape Verde' s draft Protocol of Accession to the WTO.] 
- Trade in civil aircraft 
153. The representative of Cape Verde said that domestic companies benefited from tariff 
exemptions for imported aircraft and spare parts.    
- Textiles regime  
154.  The representative of Cape Verde said that tr ade in textiles was of growing importance and 
had accounted for almost 50 per cent of total exports in 2001.  Cape Verde had recently been certified 
for apparel benefits under the African Grow th and Opportunities Act (AGOA), which gave 
Cape Verde's textile exports preferential access in th e United States.  Cape Verde also had preferential 
(quota and duty-free) access to other markets such as Canada and the European Union.  WT/ACC/SPEC/CPV/4 
 Page 41 
 
 
 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL 
- Industrial property protection 
155. The representative of Cape Verde said that hi s Government attached importance to the 
development of an industrial property protection sy stem.  New legislation was being promulgated by 
Cape Verde in this area as the existing legal provisions, i.e. the Decree No. 30679 of 24 August 1940, 
which had been enacted as the Industrial Property Code of 1959 (Ministerial Ordinance No. 17043 of 
14 May 1959), was obsolete and had not been applied in Cape Verde since its independence in 1975.  
A new Industrial Property Law, modelled on the Indu strial Property Law promulgated by Portugal in 
2003, was scheduled to be adopted by the National Assembly in [July 2005].  He expected the new Law to be in full conformity with the provisions of the WTO Agreement on Trade-Related Aspects of 
Intellectual Property Rights (TRIPS). 
156. The representative of Cape Verde submitted information on the implementation of the TRIPS 
Agreement in document WT/ACC/CPV/5, and Action Plans in document WT/ACC/CPV/9 and 
Revision 1.  As per the Action Plan, Cape Verde would seek to implement and be in full conformity 
with the provisions of the TRIPS Agreement by December 2006.  The timetable for implementation 
of the TRIPS Agreement was dependant on the provis ion of timely and adequate technical assistance.  
Assistance had been, and would be further solicite d from relevant sources, including bilateral donors 
and the World Intellectual Property Organization (WIPO). 
157. In response to a query on the Action Plan, he stated that notwithstanding the transition period 
and technical assistance requested for the implemen tation of the TRIPS Agreement, his Government 
would (i) apply Articles 3, 4 and 5 of the TRIPS Ag reement during any transition period granted; (ii) 
Cape Verde's intellectual property rights regime wo uld not result in a lesser degree of enforcement 
during any transition period granted; and (iii) ex isting rates of infringement would not significantly 
increase, and infringements of intellectual property in  this period would be addressed immediately by 
Cape Verde. 
- Responsible agencies for policy formulation and implementation 
158.  The representative of Cape Verde stated that the Ministry of Economy, Growth and 
Competitiveness was the focal point on industrial property matters.  [The Government Department 
responsible for Energy and Industry was also char ged with formulating and implementing policies on 
industrial property].  He added that the Ministry of Culture was the focal point for copyright and WT/ACC/SPEC/CPV/4 
Page 42  
 
 related rights in Cape Verde.  In 2001, Cape Verde had created the National Institute for Research, 
Promotion and Cultural Heritage (under the Mini stry of Culture) which was responsible for 
compliance with legislation pertaining to copyright and related rights.   
- Participation in international intellectual property agreements 
159. The representative of Cape Verde said that Ca pe Verde had been a member of the World 
Intellectual Property Organization (WIPO) since 1 Ju ly 1997, and participated regularly in WIPO 
activities, particularly regional seminars for Port uguese-speaking countries.  Cape Verde was also a 
member of the African Industrial Property Organization (AIPO). 
160. Cape Verde intended to accede to the Paris Convention for the Protection of Industrial 
Property and would be subm itting its accession request shortly.  With  respect to copyright and related 
rights, Cape Verde had acceded to the Berne Conve ntion for the Protection of Literary and Artistic 
Works in June 1996 and had become a member of  the International Convention for the Protection 
Performers, Producers of Phonograms, and Broa dcasting Organizations (Rome Convention) in 
June 1996.  He indicated that Cape Verde did not intend to ratify and implement the WIPO Copyright 
Treaty and the WIPO Performances and Phonograms Treaty. 
161. Cape Verde had developed a cooperation relati onship with Portugal's National Institute of 
Industrial Property for training and technical assistance activities. 
- Application of national and MF N treatment to foreign nationals 
162. The representative of Cape Verde said that the 1959 Industrial Property Code provided for 
equal treatment to all persons, inde pendent of place of residence.  The reciprocity regime applied for 
foreign nationals.  New legislati on on Industrial Property Protecti on foresaw equal rights for all 
beneficiaries, whether national citizens or foreigners .  This principle would also be adhered to in 
Cape Verde's accession to the Paris Convention.    
163. With respect to copyright and related right s, Cape Verde legislation neither permitted 
discriminatory treatment on the basis of the copyri ght holder's nationality, nor did it permit special 
treatment to the citizens of any particular country. 
- Fees and taxes 
164. The representative of Cape Verde said that mi nimal fees and charges set in the outdated 1959 
Industrial Property Code remained in effect for industrial property protection.  His Government  WT/ACC/SPEC/CPV/4 
 Page 43 
 
 
 intended to revise these fees in the new draft Industrial Property Law (Title IV – "Fees").  At present, 
Cape Verde applied no fees or taxes for copyright and related rights.  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AND MAINTENA NCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 
165. The representative of Cape Verde said that the existing Copyright Law had been enacted in 
Decree No. 107/90 of 8 December 1990.  Cape Verde had subsequently acceded to the Berne 
Convention in June 1996.  
166. Some Members requested detailed information on the Copyright Law of Cape Verde, and in 
particular its conformity with Articles 9, 10, 11, 13  and 14.2 of the TRIPS Agreement.  In response, 
the representative of Cape Verde indicated that some provisions of the Copyright Law might be 
inconsistent with provisions of the TRIPS Agre ement.  The Action Plan submitted in document 
WT/ACC/CPV/9 and Revision 1 envisaged review a nd, as necessary, amendment or revision of the 
Copyright Law [by July 2005] to bring it in conformity with the TRIPS Agreement.  The proposed timetable for completion of work, as outlined in Ca pe Verde's Action Plan, depended on the provision 
of timely and adequate technical assistance.  He added that specific elements to be reviewed, and as 
necessary amended, in the process of revising the C opyright Law included the definition of computer 
programs; rental rights for computer programs and cinematography works; the length and terms of protection for performers/performances; copyright pr otection for folklore/traditional culture (a WIPO 
model law was being examined); and other aspects or provisions identified by Members as not in 
compliance with the TRIPS Agreement.  
167. The representative of Cape Verde confirmed th at in line with Article 10.1 of the TRIPS 
Agreement, computer programs were protected as lite rary works in Cape Verde.  The Copyright Law 
currently allowed "an artist's interpretation or execu tion" to be protected for a period of 40 years, 
starting from the first day of the year in wh ich the copyrighted work was generated.  
- Trademarks, including service marks 
168.  The representative of Cape Verde said that th e 1959 Industrial Property Code (Chapter III, 
section II, Articles 86 and 103)  provided for the regist ration and protection of marks.  Applications to 
register a mark were lodged with the Department responsible for Industry.  After the application had 
been submitted, a notice to this effect was publishe d in the Industrial Property Bulletin.  The deadline 
to present complaints or objections was 90 days, af ter which the Department responsible for Industry WT/ACC/SPEC/CPV/4 
Page 44  
 
 would examine and process the application by comparing the mark submitted for registration against 
already-registered marks.  
169. Members sought a description of the protectable subject matter for trademark protection in 
Cape Verde.  Further information on the length and terms of protection, procedures for the registration 
and protection of trademarks, including well-know n marks, and the rights that the owner could 
exercise was requested.  Clarification on the ar bitration mechanism and penalties for misuse and 
infringement of trademarks was also sought. 
170. In response, the representative of Cape Verd e indicated that the 1959 Industrial Property 
Code was obsolete and that Cape Verde would adopt a new Industrial Property Law in conformity with the TRIPS Agreement [by July 2005].  
- Geographical indications, including appellations of origin 
171.  The representative of Cape Verde said that Geographical Indications were not covered by the 
1959 Industrial Property Code.  The new Industrial Pr operty Code [expected to be promulgated by 
July 2005] would cover this subject in conformity with the TRIPS Agreement. 
- Industrial designs 
172. The representative of Cape Verde said that the 1959 Industrial Property Code (Chapter II, 
Sections I - IV) provided for the registration and protection of industrial designs.  After an application had been submitted, a notice indicating the objective,  utility and novelty of the industrial design was 
published in the Industrial Property Bulletin.  The deadline to present complaints or objections was 
90 days, after which the request would be processed.  
173. Some Members sought further information on th e procedures for protection of industrial 
designs, and for the protection of textile designs.  In  reply, the representative of Cape Verde indicated 
that the 1959 Industrial Property Code was obsol ete and that Cape Verde would adopt a new 
Industrial Property Law in conformity with the relevant provisions of the TRIPS Agreement [by 
July 2005].  
- Patents 
174. The representative of Cape Verde said that the 1959 Industrial Property Code (Chapter I, 
Sections II - IV) provided for the registration of patents.  A request for a patent was made in an 
application with the supporting materials as indicated  in Article 15 of the Industrial Property Code.  
Upon the request of the inventor or his/her legal representative, a "certificate of presentation of the  WT/ACC/SPEC/CPV/4 
 Page 45 
 
 
 patent request" was issued.  After the application ha d been submitted, a notice with a transcript of the 
patent claim was published in the Industrial Property Bulletin.  The deadline to present objections or 
complaints was 90 days, after which the Departme nt responsible for Industry would examine and 
process the request.  
175. Some Members requested further information on th e existing patent legislation in Cape Verde 
and in particular its conformity with Articles 27,  28, 29 and 32 of the TRIPS Agreement.  Further 
information was also sought on the rights provided to patent holders, the term of protection, and 
whether any provisions for extension of the term of  protection of patents existed in Cape Verde.  
Details of provisions and description of conditions (i f any) which might permit the use of the patent 
subject matter without the authorization of the patent holder was solicited.   
176. In reply, the representative of Cape Verde st ated that the 1959 Industrial Property Code was 
obsolete.  Cape Verde would adopt a new Industrial Property Code in conformity with the provisions 
of the TRIPS Agreement [by July 2005].  
- Plant variety protection 
177.  The representative of Cape Verde said that pl ant variety protection was not covered by the 
1959 Industrial Property Code.  Cape Verde woul d adopt a new Industrial Property Code which 
would include plant variety protection in conformity  with the provisions of the TRIPS Agreement [by 
July 2005]. 
- Layout designs of integrated circuits 
178. The representative of Cape Verde said that layout  designs of integrated circuits were not 
covered by the 1959 Industrial Property Code.  Ca pe Verde would adopt a new Industrial Property 
Code which would include provisions in conformity  with Articles 35 to 38 of the TRIPS Agreement 
[by July 2005]. 
- Requirements on undisclosed information,  including trade secrets and test data 
179. The representative of Cape Verde said that tr ade secrets and test data were accorded 
protection through the Penal Code. 
180. Some Members sought further information on the protection of undisclosed information in 
conformity with Article 39 of the TRIPS Agreemen t, including the citation of the specific provisions 
in the Penal Code relating to trade secrets or test data.  Information was also sought on procedures and WT/ACC/SPEC/CPV/4 
Page 46  
 
 protection accorded to test data for pharmaceutical  and agricultural chemical products submitted for 
marketing approval.   
181. In reply, the representative of Cape Verde said that the existing Penal Code was old and was 
in the process of being revised.  Cape Verde w ould adopt a new Industrial Property Code which 
would include protection of undisclosed information in conformity with the provisions of the TRIPS 
Agreement [by July 2005].   
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS 
182.  The representative of Cape Verde said that the existing measures to control the abuse of 
industrial property rights were outlined in Title  III of the 1959 Industrial Property Code.    
- ENFORCEMENT 
- Civil judicial procedures and remedies 183. The representative of Cape Verde said that civil judicial procedures and remedies were 
applied in accordance with the Civil Process Code.  Under the Copyright Law, civil procedures 
arising from infringements were independent of criminal procedures.  One case on a presumed 
copyright infringement was currently before th e courts, but no definitive judgment had yet been 
passed.  No civil cases had so far been br ought concerning trademark infringements. 
184. Some Members sought further information on laws, regulations and any conditions under 
which the right holder could avail of civil judicial procedures and remedies.  Further clarification was 
solicited on Cape Verde's conformity  with Article 43.1 of the TRIPS Agreement.  In response, the 
representative of Cape Verde indicated that Cape Verde would adopt a new Industrial Property Code 
in conformity with the provisions of the TRIPS Agreement [by July 2005].   
185. Referring to Article 45.2 of the TRIPS Agreemen t, the representative of Cape Verde said that 
according to Articles 9 and 10 of the Civil Code and Cape Verde's laws of judicial procedure a right holder could be awarded the costs and/or attorney's fees at the successful conclusion of a case for 
copyright or intellectual property rights infringement.   
- Provisional measures 
186. The representative of Cape Verde said that  in accordance with Cape Verde's current 
procedural law, provisional or precautionary measures could be issued inaudita altera parte  or 
without prior notice to the defendant.  Provisions in line with Article 50 of the TRIPS Agreement 
would be included in the new law being drafted.  WT/ACC/SPEC/CPV/4 
 Page 47 
 
 
 - Administrative procedures and remedies 
187.  The representative of Cape Verde said that administrative procedures and remedies had not 
been applied in Cape Verde due to the obsolete and non-functional nature of the existing Industrial 
Property Code, and that this matter would be rectifie d with the drafting and adoption of a new Law.    
- Special border measures 
188.  The representative of Cape Verde said that th e 1959 Industrial Property Code did not include 
any special border measures to prevent the entry of counterfeit or other products violating the 
principles of industrial property protection.  Cape  Verde would adopt a new Industrial Property Law 
[by July 2005], that would be in conformity with the provisions of the TRIPS Agreement, including Article 51, on border enforcement of intellectua l property rights.  He added that training and 
counselling of the customs service would be necessary in this area.   
189. Some Members sought further informati on on border enforcement for trademark 
counterfeiting and copyright piracy.  Indications wh en border protection would be available to other 
forms of intellectual property were also solicited.   Clarification was sought on whether competent 
authorities could take ex officio action, in lin e with Article 58 of the TRIPS Agreement.  
190. In response, the representative of Cape Verd e said that Customs Officials could take 
ex officio action under current customs operating procedures to prevent the importation of goods that infringed intellectual property rights.  Cape Verd e Customs could seize such goods and the case could 
be brought before the courts.  
- Criminal procedures 
191. The representative of Cape Verde said that th e illicit or unauthorized appropriation, use or 
diffusion of industrial property or trade secrets wa s a criminal offence punishable under the terms of 
the 1959 Industrial Property Code.  Article 213 of th e 1959 Industrial Property Code stipulated that 
"any act of unfair competition shall be penalized by  a fine of CVE 100 (€ 0.90) to CVE 10,000 (€ 90) 
under current legislation, which may be supplemented by a prison term of 15 days to six months."  
He acknowledged that the present penalties in the I ndustrial Property Code did not constitute an 
effective deterrent.  No criminal judicial procedur es had been initiated in Cape Verde so far as the 
application of penalties was not effective and w ould not discourage illicit practices in the domain of 
industrial property rights.  Cape Verde would adopt a new Industrial Property Law [by July 2005], 
which would review and revise the criminal proce dures and penalties in conformity with the TRIPS 
Agreement. WT/ACC/SPEC/CPV/4 
Page 48  
 
 192. For copyright and related rights, the Copyri ght Law allowed for the imposition of penalties 
against anyone importing, selling or distributing to  the public any pirated work, whether the product 
was produced in Cape Verde or abroad.  Copyright violations were punishable by a fine of up to 
CVE 100,000 (€ 900).  The Copyright Law foresa w penalties up to one year imprisonment and a 
doubling of fines in the case of recurrence.  The c opyright holder could also approach a Court to seize 
samples of usurped or pirated work.  As per th e Action Plan in document WT/ACC/CPV/9/Rev.1, the 
Copyright Law would be revised [by July 2005], a nd training and technical assistance was required to 
ensure compliance with the relevant provisions of the TRIPS Agreement.  
VI. POLICIES AFFECTING TRADE IN SERVICES 
193.  The representative of Cape Verde said that servi ces played an important role in the economy 
of Cape Verde.  Over the period 1998-2002, servi ces had accounted for about 65 per cent of the GDP.  
The five most significant services sectors were telecommunications, constr uction and engineering, 
tourism and related services, trans portation, and financial services.  He submitted detailed information 
on policy measures affecting trade in services in document WT/ACC/CPV/4.   
194. Several government departments were involve d in the regulation of trade in services, 
including the Ministry of Economy, Competition and Growth; the Secretary of State for Tourism; the 
General Department of Tourism; CAPEVERDE Investments; the Ministry of Infrastructures and Transport; the Institute to Assist Small and Medium  Enterprises; the Ministry of Finance, Planning 
and Regional Development; the Ministry of Health ; the Ministry of Education and Human Resource 
Capacity-Building; the Ministry of Culture; the Mi nistry of Agriculture and Fisheries; the National 
Food Security Agency; the Bank of Cape Verde; an d the Chambers of Commerce.  Many professional 
associations also played a role in this area, incl uding the Bar Association, the Association of Women 
Lawyers, the Doctor's Association, and th e Association of Masons and Carpenters.  
195. Although many services had undergone significant liberalization, monopolies remained in the 
provision of certain basic services, notably in telecommunications (fixed networks), electricity 
(energy distribution) and water.  These monopo lies functioned under terms set by concession 
contracts signed with the Government of Cape Verde.   
196. Cape Verde's strategy for growth in the service s sector had been to privatize the provision of 
many services and to open the market to free and fair competition.  Cape Verde encouraged foreign 
investment and pursuant to the Foreign Inv estment Law No. 89/IV/93 of 13 December 1993, 
foreigners could invest and work in nearly every service sector.  Regulatory Law No. 1/94 set out the procedures for authorization of foreign direct investment.   WT/ACC/SPEC/CPV/4 
 Page 49 
 
 
 197. Pursuant to Law No. 47/IV/92 of 6 July 1992 and the privatization process initiated in 1993, 
joint ventures in financial services were encouraged  (though were not mandatory), with a view to 
building domestic entrepreneurial capacity, and increasing efficiency, productivity and 
competitiveness of companies.  Cape Verdean entrep reneurs with experience in financial services 
entered into strategic partnerships or joint vent ures with foreign investors.  In accordance with 
Article 7 of the Decree Law No. 87/89 of 24 Nove mber 1989, joint ventures could also be established 
in construction services.   
198. He added that other laws and re gulations that were relevant fo r investment in Cape Verde's 
service sectors or sub-sectors included the Tourist Utility Statute (Law No. 55/VI/2005 of 10 January 2005); Industrial Statute (Decree Law No 108/89 of 30 December 1989); Law No. 92/IV/93 of 15 December 1993 on export and re-export incentives; and Law No. 43/III/88 of 
27 December 1988, Law No 32/V/97 of 30 June 1 997, Decree Law No. 66/97 of 3 November 1997 
and amendments regulating financial services.  Specific authorization requirements for courier 
services (currently covered by Decree Law No . 5/94) were to be published in 2005. 
199. Concerning legislation regulating manageme nt consulting and related services, the 
representative of Cape Verde said that these services were covered by Decree-Law 37/92 of 
16 April 1992 on Accountants; Law No. 126/IV/ 95 of 26 June 1995 on Professional Associations; 
Decree-Law No. 12/2000 of 28 February 2 000 on Auditing; Decree-Law No. 51/2000 of 
4 December 2000 on Attorneys; and the Code of Commercial Enterprises and Registration of Firms 
contained in Legislative Decree No. 3/99 of  29 March 1999, which covered other aspects of 
management consulting services. 
200. Regarding the telecommunications sector, the Institute of Communication and Information 
Technologies (ICTI) had been created through Regulat ory Decree No. 1/2004 of 9 February 2004.  
The principal objectives of the ICTI were the superv ision, technical regulation and inspection of the 
communications sector as well as the promotion and development of information technologies.  [In 
addition to the ICTI and its technical regulation,  a separate regulatory body and council had been 
created for the economic regulation of the telecommunications sector].  Both regulatory bodies had their own independent decision-making structur es and administrative procedures.  Decree-Law 
No. 70/95 of 20 November 1995 defined valu e-added services as services that, while having 
fundamental or complimentary telecommunication services as their sole support, did not require their own telecommunications infrastructure.  Authorizati on to operate value-added services was granted to 
registered commercial operators and legal enterprise s, including foreign owned affiliates that had the 
provision of telecommunication services as their primar y or commercial objective.  He stated that the WT/ACC/SPEC/CPV/4 
Page 50  
 
 provision of data services covere d transmission of these services through any technological means, 
including internet protocol.   
201. On the opening up of the telecommunications sector, the representative of Cape Verde said 
that invitations to tender for mobile telephone services had been launched and the selection process 
was in progress.  One or more internet service provide rs were also expected to be operational in 2004.  
Cabo Verde Telecom had monopoly rights on the provision of fixed network services.  These 
monopoly rights had been established, until 27 November 2021, under a 25 year Concession 
Agreement (Decree Law No. 13/96 of 18 March 1996) .  His Government set the prices for these 
services.  He stated that his Government woul d make efforts to renegotiate this Concession 
Agreement, and that Cape Verde would prov ide unlimited market access for these services upon 
termination of the monopoly rights - even if the te rmination occurred before 27 November 2021.   
202. Concerning tourism and travel related services,  the representative of Cape Verde said that 
revenues from tourism had increased from about  CVE 2.9 billion in 1999 to more than 
CVE 7.5 billion (or 10.2 per cent of GDP) in 2002.  Fo reign investment in the tourism sector had also 
grown steadily.  According to PROMEX, some 4,000 j obs had been created in tourism infrastructure 
and services over the period 1994 – 2002.  He confir med that there was no Law in Cape Verde that 
discriminated against foreign suppliers. "Tourism Uti lity Status", regulated by [Law No. 42/IV/92 of 
6 April 1992 and Law No. 55/VI/2005 of 10 January  2005], entitled foreign investors and workers to 
certain fiscal and customs incentives, i.e. duty free import of materials, tax exemptions, profit or 
salary remittances abroad etc. 
203. He added that Decree Law No. 4/94 and Regulam entary Decree No. 3/94 of 7 February 1994 
regulated the activities of tour operators and touris t guides.  Tour operators were not wholesale firms 
but included local operators and the actual organizers of tours.  The basic policies on tourism development were provided for in Law No. 21/IV /91 of 30 December 1991.  Urban Planning had 
been undertaken with zones earmarked for tourism development.  He added that the preservation of 
the environment and the eco-system was a priority fo r Cape Verde.  In this context, all hotels with 
more than 21 beds were required to undertake an  environmental impact study.  The tourism 
development policy in Cape Verde also foresaw th e preservation and promotion of local culture.  In 
this regard, cultural entertainment groups had been given support.   
204. Noting that the government enterprise Cape Verde Airlines (TACV) held a monopoly on 
domestic air transportation, maintenance and re pair, and cargo handling, the representative of 
Cape Verde said that the privatization of TACV  had been re-evaluated following domestic and 
international developments in 2001.  In December  2002, a new Privatization Law had been approved  WT/ACC/SPEC/CPV/4 
 Page 51 
 
 
 to facilitate the privatization process.  The Privati zation Office was working at restructuring TACV to 
make TACV financially secure.  Subject to favour able market conditions, the privatization was 
expected to proceed shortly.  
[An initial offer on specific commitments in  services has been circu lated in document 
WT/ACC/SPEC/CPV/3 of 1 November 2004.  A revised offer can be found in document  WT/ACC/SPEC/CPV/3/Rev.1 of 1 June 2005.] 
VII. TRANSPARENCY 
- Publication of information on trade - Notifications 
205. The representative of Cape Verde said that in accordance with the Constitution, all laws and 
legal acts, rules, regulations and public notices fo r the purpose of enforcement were published in the 
Official Bulletin.  He confirmed that all normativ e acts, including SPS or TBT regulations, customs 
and judicial rulings of general application were al so published in the Official Bulletin.  The Official 
Bulletin was available for sale to the public.  Copi es were available at the National Archives and the 
National Library of Cape Verde.  He confirmed th at the Official Bulletin would be made available 
electronically after the National Press had carried out the necessary technological upgrades.  
He requested financial and technical assistance for this purpose.  Users seek ing to access the proposed 
website of Official Bulletins would be charged for the service. 
206. The representative of Cape Verde confirmed th at Cape Verde would, upon accession, fully 
and promptly implement Article X of the GATT 1994 and other transparency provisions in the WTO 
Agreements requiring notification and publication.  He further confirmed that no law, regulation, 
judicial decision, administrative rulings, or other measures of general appli cation pertaining to or 
affecting trade in goods, services and TRIPS, would become effective prior to its publication.  The publication of such laws, regulati ons and other measures would incl ude the effective date of these 
measures and list the products and/or services affected by the particular measure.    
VII. TRADE AGREEMENTS 
207. The representative of Cape Verde said that Cape Verde was a member of the Economic 
Community of West African States (ECOWAS).  The ECOWAS Treaty called for free trade, free 
movement of persons, right of residence and est ablishment, free movement of capital, and an 
Economic Union with a common currency for the EC OWAS Member States.  Cape Verde presently 
only provided for the free movement of persons among the ECOWAS Member States. WT/ACC/SPEC/CPV/4 
Page 52  
 
 208. All 15 ECOWAS Member States had agreed to  establish a Customs Union and adopt the 
ECOWAS common external tariff, which for the moment was under further study and had not yet 
been implemented.  In accordance with Artic le 35 of the revised ECOWAS Treaty, signed on 
24 July 1993, the Customs Union among the Memb er-States was to have been established over a 
ten year period (i.e. by 1 January 2000).  Within  the Customs Union, all duties and border charges 
were to be eliminated, and Member-States were acco rded duty-free treatment in each other's markets.  
Non-tariff barriers such as quotas, qua ntitative restrictions and prohibitions  were also to be removed.  
A common external tariff was to be established wh ich would be applied to imports from outside the 
Customs Union.  He provided a roadmap for implementing the ECOWAS common external tariff and for establishing the Customs Union.   
209. Unprocessed goods and traditional handicraft produ cts were covered by Article 36.2 of the 
revised ECOWAS treaty.  These goods were to be accorded duty and quota free treatment within the 
ECOWAS Community with immediate effect.  However, the ECOWAS Heads of State had deferred the implementation of this measure in order to st udy and examine its effect on non-West African 
Economic and Monetary Union (WAEMU) members (including Cape Verde).   
210. Cape Verde had concluded a free trade agreement with a group of African 
Portuguese-speaking countries - Angola, Guinea Bissau , Mozambique and Sao Tome and Principe.  
This agreement had been signed on 30 March 1980.   Free trade among the parties had not yet been 
undertaken.  He provided a list of Cape Verde's Fo reign Trade Agreements in Annex 8A of document 
WT/ACC/CPV/3.  
CONCLUSIONS 
[to be completed]  WT/ACC/SPEC/CPV/4 
 Page 53 
 
 
 ANNEX 
Laws, Regulations and Other Information Provi ded to the Working Party by Cape Verde  
− The Decree-Law of the Republic of Cape Verde No. 108/89 "On the Industrial Activity 
Statute" dated 30 December 1989; 
− The Law of the Republic of Cape Verde No. 42/ IV/92 "On the Tourism Utility Statute" dated 
6 April 1992; 
− The Law of the Republic of Cape Verde No. 83/V/98 "On the Commercial Franc Zones 
Regime" dated 21 December 1998; 
− The Law of the Republic of Cape Verde No. 89/IV/93 "On General Conditions for Making 
Foreign Investments" dated 13 December 1993"; 
− The Law of the Republic of Cape Verde No. 92/IV/93 "On Regime of Incentives Applicable 
to the Export or Re-export of Goods and Services" dated 15 December 1993; 
− The Law of the Republic of Cape Verde No . 99/IV/93 "On Free Enterprise Law" dated 
31 December 1993; 
− The Law of the Republic of Cape Verde No. 88/V/98 "On Juridical Regime for Consumer 
Protection and Defence" dated 31 December 1998; 
− The Revision Proposal of Decree-Law of the Republic of Cape Verde No. 5/99 "On the 
Commerce Juridical Regime" dated 1 February 1999; 
− The Resolution of the Republic of Cape Verd e No. 31/86 "On Trade Licenses Fees" dated 6 
September 1986; and 
− Official determination of the Republic of Ca pe Verde No. 16/99 regarding the competence to 
grant, renew, refuse, suspend or revoke au thorisation for the exercise the wholesale and 
commercial agent activities dated 3 January 2000. 
− The Decree Law of the Republic of Cape Verde No. 3/93, on "Regulation of Pharmaceuticals 
and Medications" of 2 February 1993; 
− The Decree Law of the Republic of Cape Verde No. 3/98 on "Import Quota Regime" of 
1 February 1999; 
− The Decree Law of the Republic of Cape Ve rde No. 31/86 on "Taxes and Emoluments of 
Commercial Licensing" of 6 September 1986; 
− The Decree Law of the Republic of Cape Ve rde No. 52/2003 on "G oods and Services Price 
Regime" of 24 November 2003; 
− The Decree Law of the Republic of Cape Verd e No. 48/99 on "Free Commercial Zones" of 
2 August 1999; 
− The Legislative Decree of the Republic of Ca pe Verde No. 14/97 on "Evaluation of the 
Environmental Impact" of 1 July 1997; 
− The Decree Law of the Republic of Cape Ve rde No. 29/93 on "Exchange Regime" of 
24 May 1993; 
− The Ministerial Ordinance of the Republic of Ca pe Verde No. 2/99 on "Prior Registration" of 
8 February 1999; 
− The Decree Law of the Republic of Cape Verde No. 2/2004 on "Price Regime" of 
19 January 2004; 
− The Ministerial Ordinance of the Republic of Cape Verde No. 3/2004 on "Foreign Trade 
Title" of  26 January 2004; 
− The Ministerial Ordinance of the Republic of Cape Verde No. 13/2004 on "Foreign Trade 
Titles" of 14 June 2004; 
− The Ministerial Ordinance of the Republic of  Cape Verde No. 4/2004 on "Registration and 
Licensing Procedures" of 26 January 2004; 
− The Decree Law of the Republic of Cape Verd e No. 50/2003 on "Juridical Regime of the 
Commerce Sector" of 24 November 2003; WT/ACC/SPEC/CPV/4 
Page 54  
 
 − The Ministerial Ordinance of the Republic of Cape Verde No. 6/2004 on "Liberalization of 
Wheat Flour" of 16 February 2004; 
− The Decree Law of the Republic of Cape Verde No. 2/2002, on "Reference Price and 
Minimum Price on Chicken Meat" of 12 August 2002; 
− The Draft Customs Code of the Republic of Cape Verde; 
− The Draft Decree-Law "On Financial Management Companies"; 
− The Draft Decree-Law "On Mediation"; 
− The Draft Law "On Fiscal Legislation"; 
− The Draft Decree-Law "On Mediation Centres"; 
− The Draft Law No. 43/III/88 of 27 December 1998; 
− The Draft Alteration on Law No. 43/III/88; 
− The Draft Alterations to the Law "On Complementary Services"; 
− The Draft Law "On Financial Leasing Companies"; 
− The Draft Justification Note for the Arbitration Law; 
− The Draft Law "On Arbitration"; 
− The Draft Law "On Arbitration Centres"; 
− The Draft Justification Note on the Mediation Package; 
− The Draft Industrial Property Code of Cape Verde; 
− The Draft Revision of the Law "On Copyrights" No. 101/III/90 of 27 December 1990; 
− Legislative Decree No. 9/95 of 27 October 1995; 
− Legislative Decree No. 12/97 of 9 June 1997; 
− Legislative Decree No. 5/95 of 27 June 1995; 
− Notice No. 4/98 of the Bank of Cape Verde; 
− Protocol "On Conditions Governing the A pplication of the Community Levy" of 
27 July 1996; 
− Resolution A/RES/59/209 of United Nations  "O n  Smooth Transition Strategy for Countries 
Graduating from the List of Least Developed Countries" of 10 December 2004; 
− Resolution A/RES/59/210 of United Nations of 10 December 2004; 
− Resolution No 67/V/97 of 31 of December; 
− Road Map for the ECOWAS Common External Tariff/Customs Union: 
− Draft of Legislation Pertaining to Livestock; 
− Decree Law 30/2005 "On Mediation Centers" of 9 May 2005; 
− Decree Law 31/2005 "On Mediation" of 9 May 2005; 
− Decree Law No. 53/2003 "On Competition" of 24 November 2003; 
− Decree Law No. 18/93 "On Banks" of 29 March 1993; 
− Decree Law No. 22/2003 "On VAT Regulation" of 14 July 2003; 
− Decree Law No. 40/2004 "On Conferring to Cabo Verde Investments Transitory Powers to 
Manage, Administer and Supervise Inte gral Tourism Development Zones" of 
11 October 2004; 
− Decree Law No. 59/99 "On Regulations on the Re gistration of Firms" of 27 September 1999; 
− Law No. 14/VI/2002 "On Approval of the Ta x Reform System" of 19 September 2002; 
− Proposal to Alter Law No. 43/III/88 of 27 December 1988;. 
− Law No. 32/V/97 amending Law No. 43/III/88; 
− Law No. 55/VI/2004 "On Tourism Utility  Statute" of 10 January 2004; 
− Decree Law No. 23/VI/2003 "Approving the ICE Regulation" of 14 July 2003; 
− Regulatory Decree No. 1/94 "On Foreign Inv estment Authorization" of 3 January 1994; 
− Regulatory Decree No. 7/2004 "On Statutes of Cabo Verde Investments" of 11 October 2004; 
− Regulatory Decree No. 11/93 "On Investment Companies" of 16 July 1993; 
− Law No. 14/VI/2002 "On Tax on Expenses – VAT, Article 8: Exemptions in the Internal 
Operations" of 19 December 2002;  WT/ACC/SPEC/CPV/4 
 Page 55 
 
 
 − Decree Law No. 16/97 "On Administrative appeals" dated 10 November 1997; 
− Decree Law No. 18/97 "On Administrative Procedures" dated 10 November 1997; and 
− Draft Decree Law "On Juridical Regime of Foreign Trade", amending Decree-Law 
No. 51/2003. 
 
 WT/ACC/SPEC/CPV/4 
Page 56  
 
 Table 3:  Price Controls
 
HS Product Level of Application Type of 
control Observations 
CVE 48/kg wholesale, ex-
warehouse 1st 
CVE 54/kg Retail, at all islands 
CVE 35/kg wholesale, ex-
warehouse 10.06.30 
 
 Rice 
 
 
2nd 
CVE 38/kg Retail, at all islands Maximum 
CVE 55/Kg Wholesale, ex-warehouse 17.01.11 
17.01.12 
17.01.91 
17.01.99 Sugar 
(Granular) CVE 61/kg Retail, at all islands Maximum 
Wholesale, ex-warehouse: 
CVE 30/kg  1st 
Retail, at all islands: 
CVE 33/kg  
CVE 28/litre 
Wholesale, ex-warehouse: 
CVE 25/kg  10.05.90 Corn 
2nd 
 
 Retail, at all islands: 
CVE 28/kg  CVE 21/litre Maximum In force since 
5 January 1998 and 
replaced former prices enacted on 1 March 1996 
Wholesale – CVE 36,000/Metric tonne 
Price ex-factory in Mindelo and at all ports 
of other islands. 
Resale, at all islands – CVE 2,035/bags of 50kg 1101.00 Wheat 
Flour 
CVE 46/Kg – Retail, at all islands Maximum 
1103.11. Wheat 
Bran CVE 15,000/Metric tonne 
Price Wholesale ex-factory. Maximum In force since 
5 October 1998 and 
replaced former prices enacted on 
29 December 1994 
CVE 90/Kg Wholesale - Price ex-factory; 
CVE 100/Kg Retail There are pieces of bread of: 
Weight Wholesale Retail 19.05.10 Bread and 
bakery 
500g 
250g 
100g CVE 45 
CVE 22 
CVE 9 CVE 50 
CVE 25 
CVE 10 Maximum In force since 
15 October 2001 and replaced former prices 
enacted on 5 October 1998 
2710.00 Gas oil Retail at the fuel station – CVE 63/litre 
In bulk, ex-warehouse – CVE 62/litre Fixed 
prices 
2710.00. Gasoline Retail at the fuel station – CVE 110/litre 
In bulk, ex-warehouse – CVE 109/litre Fixed 
prices 
27.11.13 Butane 
Gas Bottle of 3kg = CVE 270 
Bottle of 6kg = CVE 570 
Bottle of 12.5kg = CVE 1,350 
Bottle of 55 kg = CVE 5,940 Fixed 
prices In force since 7 June 2004 
and replaced former prices 
enacted on 6 August 2003 which reduced prices rose 
on  3 February 2003. 
2710.00. Kerosene In bulk, ex-warehouse – CVE 39/litre 
Retail – CVE 44/litre Fixed 
prices In force since 7 June 2004 
and replaced former prices 
enacted on 3 February 2003 
27.16.00 Electric 
power supply See Map Annexed to Council of Ministers 
Resolution No. 43/2002, of 30 December 2002 Fixed 
prices In force since 
1 January 2003 and replaced former prices 
enacted on 1985 
24. 03.10 Tobacco C ontract between the Government and the 
Capeverdean Tobacco Company (SCT). Agreed 
prices However, no legal measure 
has been taken.  WT/ACC/SPEC/CPV/4 
 Page 57 
 
 
 HS Product Level of Application Type of 
control Observations 
30.04.10-
90 Drugs Article 29 of Decree Law No. 3/1993, of 
15  February 1993 Fixed 
prices However, no legal measure 
has been taken. 
22.01.10 Water Map annexed to resolution No. 43/2002, of 
30 December 2002 Fixed 
prices In force since 
1 January 2003 and 
replaced former prices 
enacted on 1998 
Notes :  
- The wholesale prices include the price of the bags.  
- Rice and corn are classified according to their quality. 
- The prices of potato and onions are lib eralized in as much as they are not included in the legislation in 
effect. 
- The calculated prices listed are based on the effectiv e purchase price in the in ternational market plus 
international freight, insurance, customs duties and other charges (port fees, storage, etc.), the share of 
financial and investment co sts and the margin according to the mark et practice. The internal structural 
costs (domestic transport costs and di stribution costs) are considered.  
- Importers of Corn, Rice, Sugar and Wheat flour whic h are subject to maximum prices are obliged to 
distribute 30 per cent of their importation in other islands than Santiago and S. Vincent. 
Notwithstanding the provisions of Decree Law No. 52/2003 of 24 November 2003, of Decree Law No. 3/1993 of 15 February 1993 and of Ministerial Ordinance No. 2/2004 of 19 January 2004 the 
prices of drugs and tobacco have been from than on fixed by their producers and importers. 
- The Government of Cape Verde after consultation with the Chambers of Commerce Upper Council 
(Conselho Superior das Câmaras de Comércio) estab lishes the prices on the basis of their agreed 
margins. 
- The prices listed above are generally  changed when international price changes have a negative impact 
on the companies’ margin. WT/ACC/SPEC/CPV/4 
Page 58  
 
 Table 5: Special Tax on Consumption (STC)
 
 (Articles 24 and 29 of the Law of Taxes on Expenses) 
 
HS Code Description Rates 
(per cent) 
1604.30.00.00 Caviar and caviar substitutes: 10 
2203.00.10.00 and 
2203.00.90.00 Bottled in recipients of a capacity not exceeding 50 cl  
 - Others 30 
2204 - Wine of fresh grapes, including fortified wines; grape must other than 
that of heading 2009:  
2204.10.00   - Sparkling wine 30 
2204.21.00.90  
2204.29.00.90   - In containers holding 2 litres or less: 
  - Others  20 
20 
2205 Vermouth and other wine of fresh grapes flavored with plants or 
aromatic substances:  
2205.10.00.00   - In containers holding 2 litres or less: 30 
2205.90.00.00   - Others  30 
2206 Other fermented beverages (for example, cider, perry, mead); mixtures 
of fermented beverages and mixtures of fermented beverages and non-
alcoholic beverages, not else where specified or included:  
2206.00.10.00 - Beer excluding the one made of malt 30 
2206.00.90.00 -  Others 30 
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less 
than 80 percent vol.; spirits, liqueurs and other spirituous beverages:  
2208.20.00.00  - Spirits obtained by dis tilling grape wine or grape marc (grape 
brandy): 30 
2208.30.00.00   - Whiskies:      30 
2208.40.00.00   - Rum and tafia: 30 
2208.50.00.00   - Gin and Geneva 30 
2208.60.00.00   -  Vodka  30 
2208.70.00.00   - Liqueurs and cordials 30 
2208.90.00.90   - Other 30 
2402 Cigars, cheroots, cigarillos and ci garettes, of tobacco or of tobacco 
substitutes:  
2402.10.00.00  - Tobacco, not stemmed / stripped: 10 
2402.20.00.00 - Tobacco, partly or wholly stemmed/stripped 10 
2402.90.00.00 - Tobacco refuse: 10 
2403 Other manufactured tobacco and manufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco extracts and 
essences:   
2403.10.00.00 Smoking tobacco, whether or not containing tobacco substitutes in any 
proportion: 10 
2710 Petroleum oils and oils obtained from bituminous minerals, other than 
crude; preparations not elsewhere sp ecified or Included, containing by 
weight 70 percent or more of Petroleum oils or of oils obtained from bituminous minerals, these oils be ing the basic constituents of the 
preparations; waste oils:  
2710.00.21.00  -  Lubricating oils 10 
2710.00.29.00  - Others 10 
2710.00.32.00  - Gasoline:  10 
2710.00.33.00  - Gasoline 10 
2710.00.39.00  - Others 10 
2710.00.51.00  - Diesel 10 
3303 Perfumes and toilet waters:  
3303.00.10.00  - - - Floral or flower waters 10  WT/ACC/SPEC/CPV/4 
 Page 59 
 
 
 HS Code Description Rates 
(per cent) 
3303.00.20.00  - - - Floral or flower waters not containing alcohol 10 
3303.00.90.00  - - - Others 10 
3304 Beauty or make-up preparations and preparations for the care of the skin 
(other than medicaments), including sunscreen or sun tan preparations; 
manicure or pedicure preparations:  
3304.10.00.00  - Lip make-up preparations 10 
3304.20.00.00  - Eye make-up preparations 10 
3304.30.00.00  - Manicure or pedicure preparations 10 
  - Others:  
3304.91.00.00  - - Powders, whether or not compressed  10 
3304.99.00.00  - - Others  10 
3604 Fireworks, signaling flares, rain rockets, fog signals and other 
pyrotechnic articles:  
3604.10.00.00  - Fireworks (display):  10 
3604.90.00.00  - Others  10 
4302 Tanned or dressed fur skins (including heads, tails, paws and other 
pieces or cuttings), unassembled, or assembled  (without the addition of 
other materials) other than those of heading 4303:  
4302.11.00.00  - - Of mink 10 
4302.12.00.00  - - Of rabbit or hare  10 
4302.13.00.00  - - Of lamb, the following: As trakhan, Broadtail, Caracul, Persian and 
similar lamb, Indian   Chinese, Mongolian or Tibetan lamb 10 
4302.19.00.00  - - Others 10 
4302.20.00.00  - Heads, tails, paws and other pieces or cuttings, not assembled 10 
4302.30.00.00  - Whole sk ins and pieces or cuttings  thereof, assembled 10 
4303 Articles of apparel, clothing acce ssories and other articles of fur skin:  
4303.10.00.00  - Artic les of apparel and clothing accessories 10 
4303.90.00.00  - Others 10 
4304.00.00.00  Artificial fur and articles thereof 10 
7101 Pearls, natural or cultured, whether or not worked or grated but not 
strung, mounted or set; pearls natural or cultured, temporarily string for convenience of transport  
7101.10.00.00  - Natural pearls  10 
7101.21.00.00 - - Unworked 10 
7101.22.00.00 - - Worked 10 
7102 Diamonds, whether or not worked, but not mounted or set:  
7102.10.00.00  - Unsorted  10 
7102.31.00.00  - - Unworked or simply sawn, cleaved or bruted  10 
7102.39.00.00  - - Other  10 
7103 Precious stones (other than diamonds) and semiprecious stones whether 
or not worked or grated but not strung, mounted or set; ungraded 
precious stones (other than diamonds and semiprecious stones temporarily strung for convenience of transport:  
7103.10.00.00 - Unworked or simply sawn or roughly shaped.  10 
7103.91.00.00 Ruby, sapphire and emerald 10 
7103.99.00.00  - - Other  10 
7104 Synthetic or reconstructed precious or semi-precious stones, whether or 
not worked or grated but not strung, mounted or set; ungraded synthetic or reconstructed precious or semiprecious stones, temporarily strung for 
convenience of transport:   
7104.20.00.00  - Other, unworked or simply sawn or roughly shaped 10 
7104.90.00.00  - Other 10 
7113 Articles of jewelry and parts thereof,  of precious metal or of metal clad 
with precious metal  WT/ACC/SPEC/CPV/4 
Page 60  
 
 HS Code Description Rates 
(per cent) 
7113.11.00.00  - - Of silver, whether or not plated or clad with other precious metals 10 
7113.19.00.00  - - Of other precious metals whether or not plated or clad with precious 
metal 10 
7113.20.00.00  - Of base metal clad with precious metal 10 
7114 Articles of goldsmith's or silversmith's wares and parts thereof, of 
precious metal or metal clad with precious metal:  
7114.11.00.00  - - Of silver, whether or not plated or clad with other precious metal: 10 
7114.19.00.00  - - Of other precious metals whether or not plated or clad with precious 
metal 10 
7114.20.00.00  - Of base metal clad with precious metal 10 
7115 Other articles of precious metal or of metal clad with precious metal  
7115.90.00.00 - Artifacts for technical or laboratory use 10 
7116 Articles of natural or cultured pearls, precious or semiprecious stones 
(natural, synthetic or reconstructed):  
7116.10.00.00  - Of natural or cultured pearls  10 
7116.20.00.00  - Of precious or semiprecious stones (natural, synthetic or 
reconstructed) 10 
7117 Imitation jewelry  
7117.11.00.00  - - Cuff links and studs  10 
7117.19.00.00  - - Other  10 
7117.90.00.00  - Other  10 
Ex-87 Automobiles used to transport persons and merchandise up to 5 tons, 
used, of the headings 8702, 8703, 8704.21.20.11 to 8704.21.20.29 and 
8704.31.20.11 to 8704.31.20.29:  
  - Up to four years old  0 
  - Up to six years old:  30 
  - Up to ten years old 60 
  - With more than ten years old:  150 
 Road tractors for semi-trailers, track -laying tractors, and other tractors, 
except pedestrian controlled tractors and automobiles for the transport 
of merchandise with capacity great er than 5 tons, used, from the 
headings 8701.20.00 to 8710.90.00 and 8704.22.20.11 to 
8704.22.20.19, 8704.23.20.11 to 8704.23.20.19, 8704.32.20.11 to 
8732.20.19, 8704.90.00.11 to 8704.90.00.19:   
  - Up to four years old  0 
  - Up to six years old:  10 
  - Up to ten years old 20 
  - With more than ten years old:  60 
8903 Yachts and other vessels for pleasure or sports; row boats and canoes  
8903.91.00.00  - Sail boats with or without auxiliary motors 10 
8903.91.00.90  - Sail boats with motors 10 
8903.92.00.00  - Motor boats other than outboard motorboats  10 
9303 Other firearms and similar devices which operate by the firing of an 
explosive charge (for example, sporting shotguns and rifles, muzzle loaded firearms Very pistols and other devices designed to project only 
signal flares, pistols and revolvers for firing blank ammunition, captive 
bolt humane killers, line-throwing guns):   
9303.10.00.00  - Muzzle loading firearms  10 
9303.20.00.00  - Other sporting, hunting or target shooting shot-guns, including 
combination short-gun rifles 10 
9303.30.00.00  - Other sporting, hunting or target-shooting rifles 10 
9303.90.00.00  - Other 10 
9304.00.00.00 Other firearms (for example: rifles, carbines, and pistols, spring loaded, 
of air compression or of gas, "mat racas") except those of heading 9307 10  WT/ACC/SPEC/CPV/4 
 Page 61 
 
 
 HS Code Description Rates 
(per cent) 
9701 Paintings, drawings and pastels, executed entirely by hand, other than 
drawing of heading 4906 and other than hand-painted or hand decorated 
manufactured articles; collages and similar decorative plaques; all the 
foregoing, framed or not framed:  
9701.10.00.00  - Paintings, drawings and pastels 10 
9701.90.00.00  - Other 10 
9702.00.00.00 Original engravings, prints  and lithographs, framed and not framed. 10 
9703.00.00.00 Original sculpture and statuary, in any material 10 
9706.00.00.00 Antiquities of an ag e exceeding one hundred years. 10 
 
 WT/ACC/SPEC/CPV/4 
Page 62  
 
 Table 6(a):  Goods subject to comple te exemption or right to deduction
 
VAT Exemptions  
 Article Description Heading 
1. Food Products – No. 28 of Article 9 
1.1 Meat and edible meat offal, from the following Tariff headings:  
1.1.1 of bovine animals, fresh, chilled,  frozen,  0201.10.00 to 0202.30.00 
1.1.2 of swine, fresh, chilled, frozen,  0203.11.00 to 0203.29.00 
1.1.3 of sheep and goats, fresh, chilled, frozen,  0204.10.00 to 0204.50.00 
1.1.4 of poultry (roosters, chickens, ducks, geese, turkeys, guineas, 
domestic species) 0207.11.00 to 0207.36.00 
1.1.5  pig fat free of lean meat, and poultry fat, not rendered or otherwise 
extracted fresh chilled frozen salted in brine dried or smoked 0209.00.00 
1.1.6 Meat and edible meat offal, salted, in brine, from swine and bovine 
animals 0210.11.00 to 0210.20.00 
1.2 Fish from the following Tariff headings:  
1.2.1- from the following fish, fresh, frozen or chilled, excluding fish 
fillets, livers, roes and semen 0302.31.00 to 0302.39.00 
1.2.1.1  Tunas and Bonito 0303.41.00 to 0303.49.00 
1.2.1.3- Mackerel (Scomber scombrus, Scomber australasicus,   0302.64.00 
 Scomber japonicus) 0303.74.00 
1.2.2. -  Smoked fish, whether or not in fillets, excluding Pacific and Danube 
salmon 0305.42.00, 0305.49.00 
1.2.3 Fish, dried, whether or not salted but not smoked, excluding cod 0305.59.00 
1.2.4 Fish, salted but not dried or smoked, and fish in brine, excluding cod, 
and anchovies 0305.61.00, 0305.69.00 
1.3 Milk and dairy products and eggs from the following tariff headings:  
1.3.1 Milk and cream, not concentrated nor containing added sugar or 
other sweetening matter, in powder, granules or other solid forms 0401.10.00 to 0401.30.00 
1.3.2 Milk and cream, concentrated or containing added sugar of other 
sweetening matter 0402.10.10 to 0402.99.00 
1.3.3 Butter milk and curdled milk and cream, yogurt, kephir and other 
fermented or acidified milk and cr eam, whether or not concentrated 
or containing added sugar or other sweetening matter, or flavoured or containing added fruits or cocoa 0403.10.10, 0403.10.20, 
0403.10.30, 0403.10.90, 
0403.90.00 
1.3.4 Butter and other fats derived from milk 0405.10.10 to 0405.90.10 
1.3.5 Cheese and curd 0406.10.10 to 0406.90.10 
1.3.6 Birds eggs, in shell, fresh, preserved or cooked, excluding eggs for 
hatching 0407.00.00.90 
1.4 Vegetables from the following tariff headings:  
1.4.1 Potatoes, fresh or chilled, excluding seed  0701.90.00 
1.4.2 Tomatoes, fresh or chilled  0702.00.00 
1.4.3 Onions and shallots, garlic, l eeks and other alliaceous vegetables 
fresh or chilled 0703.10.00 to 0703.90.00 
1.4.4 Cabbages, cauliflower, kohlrabi,  kale and similar edible brassicas, 
fresh or chilled 0705.11.00 to 0705.29.00 
1.4.5 Lettuce and chicory, fresh or chilled  0705.11.00 to 0705.29.00 
1.4.6 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar 
edible roots, fresh or chilled. 0706.10.00 to 0706.90.00 
1.4.7 Cucumbers including gherkins, fresh or chilled.  0707.00.00 
1.4.8 Leguminous vegetables, shelled or unshelle d, fresh or chilled 0708 .10.00 to 0708.90.00 
1.4.9 Dried leguminous vegetables, shelled, whether or not skinned or 
split, excluding yellow peas. 0713.10.00 to 0713.90.00  WT/ACC/SPEC/CPV/4 
 Page 63 
 
 
  Article Description Heading 
1.4.10 Cassava (manioc) 0714.10.00 
 sweet potatoes  0714.20.00 
 Yams 0714.90.10 
1.5 Fruits  
1.5.1 Fresh Bananas  0803.00.10  
  0803.00.20 
1.5.2 Guavas mangoes and mangosteens, fresh or dried  0804.50.10, 0804.50.90 
1.5.3 Citrus fruit, fresh or dried  0805.10.00 to 0805.90.00 
1.5.4 Grapes, fresh 0806.10.00 
1.5.5 Melons, watermelons and papayas (papaws) fresh.  0807.11.00 to 0807.20.00 
1.5.6 Apples, pears and quinces, fresh  0808.10.00, 0808.20.00 
1.5.7 Apricots, cherries, peaches, (including nectarines), plums and sloes, 
fresh 0809.10.00 to 0809.40.00 
1.5.8 Other fruit, fresh   
 Strawberries  0810.10.00 
 Raspberries, blackberries, mulberries  and loganberries  0810.20.00 
 Black, white or red currant, in cluding the "cassis" 0810.30.00 
 Cranberries, blueberries and other fruits  0810.40.00 
 Kiwis 0810.50.00 
 Other fruit 0810.90.00 
1.6 Cereals from the following tariff headings   
1.6.1 Wheat  1001.90.00 
1.6.2 Corn (maize), excluding seed and popcorn 1005.90.00 
1.6.3 Rice 1006.10.90 to 1006.40.00 
1.6.4 Cane or beet sugar and chemically pure sucrose, in solid form 1701.11.00 to 1701.99.90 
1.6.5 Ordinary bread 1905.90.00.91 
1.7 Fat or oil from the following tariff headings:  
1.7.1 Pig fat (including lard) 1501.00.00 
1.7.2 Soybean oil and its fractions, whether or not refined, but not 
chemically modified, excluding crude oil 1507.90.00 
1.7.3 Peanut oil and its fractions, whether or not refined, but not  1508.90.10 
 chemically modified, excl uding crude oil 1508.90.90 
1.7.4 Olive oil and its fractions, whether or not refine, but not chemically 
modified:  Virgin; other, packed fo r retail in pack containers of less 
than 5 litres. 1509.10.00 to 1509.90.90 
1.7.5 Sunflower-seed oil or safflower and its fractions whether or not 
refined but not chemically mo dified, excluding crude oil. 1512.19.00 
1.7.6 Margarine, excluding liquid margarine  1517.10.00 
2. Goods from No. 15 of Article 9 
2.1 Printed books, brochures, leaflets and similar printed matter, whether 
or not in single sheets 4901.10.00 to 4901.99.90 
2.2 Newspapers, journals and periodicals, whether or not  4902.10.00  
 illustrated containing advertising material 4902.90.00 
2.3 Children's picture, drawing or colouring books 4903.00.00 
2.4 Music, printed or in manuscript, whet her or not bound or illustrated 4904.00.00 
2.5 Maps and hydrographic or similar charts of all kinds, including 
atlases, wall maps, topographical plans and globes printed 4905.10.00 to 4905.99.00 
3. Goods from No. 29 of Article 9 
3.1 Medicaments, including those for veterinary use, as well as patents 
and other pharmaceutical products fo r therapeutic or prophylactic 
uses 3001.10.00 to 3006.60.00 
4. Goods from Nos. 32 and 33 of Article 9 
4.1 Eggs for hatching 0407.00.00 
4.2 Seed potatoes  0701.10.00 
4.3 Corn seed  1005.10.00 WT/ACC/SPEC/CPV/4 
Page 64  
 
  Article Description Heading 
4.4 Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, 
in growth or in flower, chicory plants and roots 0601.10.00, 0601.20.00 
4.5 Other live plants (including their roots), cuttings and slips, 
mushroom spawn 0602.10.00 to 0602.90.00 
4.6 Cereal straw and husks, unprepared, whether or not chopped ground, 
pressed or in the form of pellets 1213.00.00 
4.7 Rutabagas (swedes), mangolds, fodder roots, hay, alfalfa (lucerne) 
clover, sainfoin, forage kale, lupines, vetches and similar forage 
products, whether or not in the form of pellets  1214.10.00, 1214.90.00 
4.8 Vegetable materials and vegetable waste, vegetable residues and by-
products, whether or not in the form of pellets, of a kind used in animal feeding Preparations of a kind used in an imal feeding, 
excluding dog and cat food 2308.10.00, 2308.90.00 
2309.90.10, 2309.90.90 
4.9 Mineral or chemical fertilizer s  3101.00.00 to 3105.90.00 
4.10 Insecticides,  fungicides, herb icides, anti-sprouting products and 
plant growth regulators 3808.10.10 to 3808.30.00 
4.11 spades, shovels, mattocks, picks,  hoes, forks and rakes: axes, bill 
hooks and similar hewing tools; secateurs 8201.10.00 to 8201.90.00 
 and pruners and other hand tools of a kind used for agriculture and 
horticulture or forestry 
4.12 Liquid elevators   
8413.82.00 
4.13 Agricultural, horticultural or forestry machinery for soil preparation 
or cultivation; Lawn or sports ground rollers  8432.10.00 to 8432.90.00 
4.14 Harvesting or threshing machinery including straw or fodder balers;  8433.11.00 to 8433.59.00 
 Grass or hay mowers; 8433.90.00 
4.15 Poultry incubators and brooders 8436.21.00 
4.16 Tractors 8701.10.00 to 8701.90.00 
4.17 Live animals -  horses, asses, mules and hinnies, bovine, swine, 
sheep and goats, chickens, ducks, geese, turkeys and guineas of 
domestic species. 0101.11.00 to 0105.99.00 
2. Goods from No. 15 of Article  9 
2.1 Printed books, brochures, leaflets and similar printed matter, whether 
or not in single sheets 4901.10.00 to 4901.99.90 
2.2 Newspapers, journals and periodicals, whether or not illustrated 
containing advertising material 4902.10.00, 4902.90.00  
2.3 Children's picture, drawing or colouring books 4903.00.00 
2.4 Music, printed or in manuscript, whet her or not bound or illustrated 4904.00.00 
2.5 Maps and hydrographic or similar charts of all kinds, including 
atlases, wall maps, topographical plans and globes printed 4905.10.00 to 4905.99.00 
3. Goods from No. 29 of Article 9 
3.1 Medicaments, including those for veterinary use, as well as patents 
and other pharmaceutical products fo r therapeutic or prophylactic 
uses 3001.10.00 to 3006.60.00 
4. Goods from No. 32 and 33 of Article 9 
4.1 Eggs for hatching 0407.00.00 
4.2 Seed potatoes  0701.10.00 
4.3 Corn seed  1005.10.00 
4.4 Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, 
in growth or in flower, chicory plants and roots 0601.10.00, 0601.20.00 
4.5 Other live plants (including their roots), cuttings and slips, 
mushroom spawn 0602.10.00 to 0602.90.00 
4.6 Cereal straw and husks, unprepared, whether or not chopped ground, 
pressed or in the form of pellets 1213.00.00  WT/ACC/SPEC/CPV/4 
 Page 65 
 
 
  Article Description Heading 
4.7 Rutabagas (swedes), mangolds, fodder roots, hay, alfalfa (lucerne) 
clover, sainfoin, forage kale, lupines, vetches and similar forage products, whether or not in the form of pellets  1214.10.00, 1214.90.00 
4.8 Vegetable materials and vegetable waste, vegetable residues and by-
products, whether or not in the form of pellets, of a kind used in 
animal feeding.  Preparations of a kind used in animal feeding, 
excluding dog and cat food 2308.10.00, 2308.90.00 
2309.90.10, 2309.90.90 
4.9 Mineral or chemical fertilizer s  3101.00.00 to 3105.90.00 
4.10 Insecticides,  fungicides, herb icides, anti-sprouting products and 
plant growth regulators 3808.10.10 to 3808.30.00 
4.11 spades, shovels, mattocks, picks,  hoes, forks and rakes: axes, bill 
hooks and similar hewi ng tools; secateurs a nd pruners and other 
hand tools of a kind used for agricu lture and horticulture or forestry. 8201.10.00, 8201.90.00 
4.12 Liquid elevators  8413.82.00 
4.13 Agricultural, horticultural or forestry machinery for soil preparation 
or cultivation; Lawn or sports ground rollers 8432.10.00 to 8432.90.00 
4.14 Harvesting or threshing machinery including straw or fodder 8433.11.00 to 
 balers;  
grass or hay mowers; 8433.59.00 
8433.90.00 
4.15 Poultry incubators and brooders 8436.21.00 
4.16 Tractors 8701.10.00 to 8701.90.00 
4.17 Live animals -  horses, asses, mules and hinnies, bovine, swine, 
sheep and goats, chickens, ducks, geese, turkeys and guineas of 
domestic species.  0101.11.00, 0105.99.00 
 WT/ACC/SPEC/CPV/4 
Page 66  
 
 Table 6(b):  Exemptions listed in Article 8 of VAT Law
 
- The transmission of goods and performance of services rendered in the ambit of agriculture, forestry, 
livestock or fishing activities; 
- The performance of services and the transmission of goods connected to them, concerning medical 
and sanitary activities, teaching an d professional training, child, youth  or old age protection, social 
security and assistance, usually performed by public  entities or non-lucrative agencies and collective 
persons under public Law; 
- Pre-school and basic education activities, secondary school, technical-professional, medium-higher 
education activities at a private level; 
- Non-lucrative agencies managing institutes or orga nizations providing services on sports, recreation 
and physical education and those who practice these activities; 
- Transmission of goods and services provided by Public entities and collective persons under public 
Law or non-lucrative agencies, exercising activities relating to the Organization of congresses, 
colloquia, conferences, seminars, courses and si milar manifestations, of scientific, cultural, 
educational or technical nature; 
- Activities performed by show-business professional s in theatrical activities, choreography, music, 
circus, sports and other, film production,  disc editing, and sound and image support; 
- Transmission of Post office sale of stamps in circulation or of stamped values and the respective sales 
commissions; 
- Transmission of goods and services provided by public postal services, except for the 
telecommunications; 
- Transmission of copyrights and authorization to use intellect ual work, according to the Law 
No. 101/III/90 of 29 December, In tellectual Property Law, when done by the authors themselves, their 
heirs or legal representatives; 
- Transmission done by the authors themselves, their heir s or legal representatives of art objects of their 
own, according to the conditions and lim itations fixed in the VAT regulation; 
- Transmission of newspapers, magazines and books, considered of a cultural, educational, technical or 
re-creative nature; 
- Transmission of staff by religious or philosophical institutions to provide exempt or religious 
activities; 
- The rendering of civic services prov ided by non-lucrative ag encies to the benefit of their members, if 
these agencies exercise political, religious, hum anitarian, patriotic, philanthropic, re-creative, 
sporting, cultural and civic activities or representin g economic interests being the sole counterpart a 
quota fixed by the respective statutes; 
- Transmission of goods and services performed by entities whose habitual activities are exempt, when 
occasional demonstrations are performed to collect f unds for their exclusive benefit, as often per year 
as allowed in the VAT regulation, provided that the exemption does not cause distortion towards 
competition; 
- Exploration of gambling and their commissions, under public Law;   
- Transmission of staple products (to be defined by the VAT Regulation); 
- Transmission of medications, incl uding those for veterinarian pur poses as well as pharmaceutical 
specialties and products exclusively for therapeutic or prophylactic purposes; 
- Transmission of goods of equipment, seeds, reprod uction species, fertilizers, pesticides, herbicides, 
fungicides and similar, as well as  nets, hooks and other fishing appa ratus, according to taxes to be 
described on the VAT Regulation;  WT/ACC/SPEC/CPV/4 
 Page 67 
 
 
 - Banking and financial operations, insurance and reinsurance operations and the services performed by 
brokers and insurance commission agents; 
- The transmissions of real proper ties subject to Single Tax on Pa trimony according to the respective 
Regulation; 
- The real property rental not including commercial, industrial and services activities; 
- Services performed by funeral and cremation enterprises, and the transmissions of goods related with 
these services;  
- Public garbage removal services; 
- Transmission of goods relating exclusively to exempt activities and which did not benefit from the 
right to deduction; and 
- Non-commercial public radio and television activities. 
 
__________