RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/27 
25 January 2008 
 (08-0364) 
Working Party on the 
Accession of Montenegro Original:   English 
 
 
 
ACCESSION OF MONTENEGRO 
 
Additional Questions and Replies  
 
 
 The following submission, dated 2 January 2008 , is being circulated at the request of the 
Delegation of the Republic of Montenegro.  
 
_______________ 
  WT/ACC/CGR/27 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Investment Regime.............................................................................................................. ......1  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................1  
- Trading Rights ................................................................................................................. .........1  
A. IMPORT REGULATIONS......................................................................................................3  
- Application of internal  taxes to imports .................................................................................3  
- Quantitative import restrictions, includi ng prohibitions, quota and licensing 
systems ........................................................................................................................ ...............4  
- Customs valuation.............................................................................................................. .......4  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ...........................5  
- Industrial policy, including subsidies......................................................................................5  
- Technical barriers to trade, standards and certification.......................................................6  
- Sanitary and phytosanitary measures...................................................................................10  
- Trade-related investment measures ......................................................................................15  
- State-trading entities......................................................................................................... ......16  
- Agricultural policies.......................................................................................................... ......17  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................18  
- SUBSTANTITIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................18  
- Trademarks, including  service marks...................................................................................18  
- Geographical indications, including appellations of origin.................................................19  
- Requirements on undisclosed information, including trade secrets and test data............20  
- ENFORCEMENT...................................................................................................................2 1 
- Civil judicial procedures and remedies.................................................................................21  
- Criminal procedures............................................................................................................ ...21 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................22  
 
  WT/ACC/CGR/27 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Investment Regime Question 1 Paragraph 22 of the Factual Summary (JOB(07) /115) contains reference to "the obligatory 
employment of local workers."  Please explain this requirement.  What is the legal basis for the 
requirement?  To what companies does it apply?  Does it apply equally to domestically-owned 
and foreign-owned companies?   
Answer:
 
This appears to be a misinterpretation.  There is no such requirement in the legislation applicable in 
Montenegro. 
Question 2 
Please describe the amendments to the Law on Foreign Investment.  Did they strengthen 
protection for investment, as suggested in paragr aph 24 of the Factual Summary?  If so, please 
describe how the protections were strengthened.  
Answer:  
Under the Law on Amendments and Modifica tions of the Law on Foreign Investments 
(RM OG Nos. 36/07), provisions prohibiting foreign investments in areas, which were defined by law 
as restricted zones (national parks and border areas et c.) have been abolished.  By these amendments 
all the restrictions for foreign investors have been  removed, except one, provided for in Article 7 of 
the Law, under which foreign investor may invest  in production and trade in armament and military 
equipment jointly with a domestic person, provided that the share of the foreign investor does not 
exceed 49 per cent.  
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 3 
We welcome Montenegro’s recognition of Membe rs’ concerns about its trading rights regime, 
especially in relation to requiring physical presence or the establishment of a corporate entity in 
order to import or receive a necessary activi ty licence, and its commitment to revise its 
legislation accordingly.  We look forward to seeing drafts of that legislation to ensure that Members’ concerns are fully addressed before such legislation is adopted.   
Are these amendments included in the legislation just submitted to the Secretariat?   
Answer
: 
No, they are not.  However, the amendments will  be submitted for review by the Working Party 
before the next Working Party meeting.  WT/ACC/CGR/27 
Page 2 
 
 
 Question 4 
Paragraphs 49 and 50 describe the registration process for legal entities in Montenegro.  In 
essence, an entity must 1) register with the Centra l Register of the Commercial Court, 2) obtain 
a statistical number for the Bureau of Statistics and 3) obtain a customs number.  In response 
Question 9 of WT/ACC/CGR/23, Montenegro confirmed that, pursuant to forthcoming 
amendments, an entity is not required to have  a physical presence in Montenegro in order to 
register at Customs.   
Please confirm that a physical presence is not necessary for registration at the Central Register 
of the Commercial Court or the Bureau of Statistics.  
Answer : 
A physical presence is not necessary for registration at the Central Register of the Commercial Court 
or the Bureau of Statistics.  The person who is not physically present can be represented by an 
attorney. 
Question 5 
According to paragraph 51 of the Factual Summary, and the response to Question 14 of 
WT/ACC/CGR/23, in order to be the importer of record, a foreign natural person must be 
physically present in Montenegro and have a residence in Montenegro.  Montenegro has 
acknowledged that its establishment requirement for legal entities is not consistent with the WTO and that it will amend its legislation to eliminate the requirement of a physical presence.  Will Montenegro likewise amend its legislation to eliminate this establishment requirement for 
natural persons?   
Answer:
 
Draft of the relevant amendments to the Customs Law, enabling person not established in Montenegro 
to be an importer of record, will be submitted fo r review by the Working Party before the next 
Working Party meeting. 
Question 6 Paragraph 51 of the Factual Summary and the response to Question 14 of WT/ACC/CGR/23 
explain that an individual entrepreneur may import for retail trade, but not for wholesale trade: 
- What is the rationale behind Montenegro’s prohibition against entrepreneurs importing 
products for wholesale? 
- Does this prohibition against importing for wholesale apply to both domestic and 
foreign entrepreneurs? 
Answer
: 
Montenegro has taken steps to remove this restrict ion.  In accordance with the draft of the new Law 
on (internal) Trade, entrepreneurs will be able to engage in wholesale.  The adoption of the draft Law 
is expected in the first quarter of 2008.  The draf t will be available for review by the Working Party 
before the next Working Party meeting.   WT/ACC/CGR/27 
 Page 3 
 
 
 Question 7 
According to paragraph 57 of the Factual Summary , an activity licence to import or export 
medicines can be granted only to a legal enti ty established in Montenegro.  Such a requirement 
does not appear to conform with the trading rights requirements under GATT Articles III and 
XI: 
- What is Montenegro’s rationale for imposing such a requirement? 
- How will Montenegro bring its activity licen sing regime into conformity with the WTO? 
Answer : 
Medicines are specific goods, important for the hea lth of the population and subject to particular 
public interest.  Therefore, under the Law on Medi cines of Montenegro, any commercial operator, 
both domestic and foreign, who intend to trade in medi cines in the territory of Montenegro, must meet 
requirements with respect to human resources and technical equipment necessary for trade in medicines in accordance with th e principles of good practice in distribution and warehousing, and 
must be available for the inspectorial superv ision and control by the state authorities.  
Foreign legal entity may establish a branch in Montenegro, and operate in Montenegro under 
conditions identical to those a pplicable to domestic persons. 
However, Montenegro intends to take steps to amend the appropriate legislation and make it 
compliant to GATT Articles III and XI.    
Question 8 
Regarding the activity licenses to import po isonous substances, fertilizer, and pesticides, 
mentioned in paragraph 58 of the Factual Summary, does the draft legislation on fertilizers and 
pesticides make such licenses be equally availa ble to non-residents of Montenegro?  We look 
forward to reviewing Montenegro’s draft laws on pesticides and fertilizers.   
Answer
: 
Draft Law on Pesticides and the Law on Fertilizers do not provide for the residence as the criterion for 
issuing of licenses.  
A. IMPORT REGULATIONS 
- Application of internal taxes to imports Question 9 Paragraph 72 of the Factual Summary explains  that Montenegro applies different excise tax 
rates on cigarettes depending on quality: 
- What are the quality criteria for each category? 
- What percent of imported and domestically -produced cigarettes fall into each of the 
three categories? 
- What are the applicable HTS numbers for each category? WT/ACC/CGR/27 
Page 4 
 
 
 Answer : 
An interpretation in paragraph 72 does not appear to be entirely correct.  Under the Law on Excise 
Taxes (RM OG Nos. 55/01, 12/02 and 76/05), the following tobacco products are subject to excise tax: cigarettes, cigars, cigarillos, finely shredde d tobacco (for rolling cigarettes) and other smoking 
tobacco.  The rate of the excise tax depend on the kind of a product rather than the quality.   
The excise tax for cigarettes compri ses specific and proportional excise tax.  Specific excise tax for 
cigarettes is €1.00 for 1,000 cigarettes.  Proportional excise tax amounts to 26 per cent of their retail 
price. 
The excise tax for other tobacco products is paya ble per kilogram of the product, as follows: 
- Cigars and cigarillos: €10.00/kg; 
- Finely shredded tobacco (for rolling cigarettes): €20.00/kg; and - Other smoking tobacco: €15.00/kg. 
- Quantitative import restrictions, including  prohibitions, quota and licensing systems 
Question 10 We continue to have concerns about the extensiv e list of goods subject to licensing approvals or 
certificates in the Decision on Control List for Export and Import.  Mont enegro has submitted a 
revised Control List.  While we prefer automati c licenses to non-automatic licenses, we had 
hoped that the licensing requirement would be eliminated altogether for most commonly-traded 
goods.  We will review the Decisi on and provide our comments.  
Answer:
 
Montenegro would like to point out that the numbe r of goods subject to non-automatic licenses listed 
in Annex I of the revised Decision on the Control List has been substantially reduced.  The goods listed in other Annexes are subject to licenses in ac cordance with international agreements binding on 
Montenegro, whereby Montenegro fulf ils its international obligations. 
- Customs valuation 
Question 11 
What is the status of the amendments to Customs Law and Decree on Implementation to 
include the remaining Interpretative Notes to  the WTO Agreement on Customs Valuation, 
mentioned in paragraph 92 of the Factual Summary?  We do not see it on the list of legislation recently submitted to the WTO Secretariat. 
Answer
: 
The Customs Law and its Implementing Regulatio n have been amended in November 2006, to 
include the remaining interpretative notes.  The amendments became effective on 1 January 2007.  WT/ACC/CGR/27 
 Page 5 
 
 
 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
- Draft Notification Pursuant to Article XV I:1 of the GATT 1994 and Article 25 of the 
Agreement on Subsidies and Countervailing Measures (WT/ACC/CGR/15/Add.1)  
Question 12 AID FOR PRIVATIZATION:  Please explain the terms the loans provided to the different 
sectors. 
Please explain what the eligibility criteria is in  order to receive the loans under this programme. 
Answer
: 
The aim of the Restructuring Assistance Programme is to create conditions for improvement of all the 
relevant aspects of company operations, to impr ove their competitiveness, to define optimal 
organizational structure and number of employees, a nd to attract investors, thus assisting companies 
in their restructuring and enabling them to operate in the open market economy. 
The relevant eligibility criteria receiving a loan are the following: 
- Ability of companies for successf ul restructuring shown through 
restructuring/business plan; 
- Possibility of privatization within 12 months; - Human resources potential; and - Export potential 
The credit assistance terms are the following: 
- Three year repayment period, with one year grace period; 
- Interest rate is two per cent annually; and - Providing security, determined by the Ministry of Finance and included in the loan 
agreement, mostly by mortgage or by providing a letter of exchange. 
 
Question 13 
SUPPORT FOR INDUSTRY OF ELECTRIC MACHINES AND EQUIPMENT:  Please 
explain the terms of the favourable loans that are provided to Obod. 
Please explain what the eligibility criteria is in or der to receive the prefer ential loans under this 
programme?  Do any other companies in the Rep ublic of Montenegro receive favourable loans 
under this programme?  If so, you please provide further details of which other types of 
companies have received loans under this programme.  
Is there a particular reason why Obod is th e sole recipient of the favourable loans? WT/ACC/CGR/27 
Page 6 
 
 
 Answer : 
"Obod", an electrical appliance manufacturer, is the company, which is not privatized yet and where 
the state owns 51.8 per cent of the capital.  A p ublic tender for the sale of state’s share is being 
prepared.  
The primary reason for providing favourable loans to "Obod" is to prepare the company for the 
successful privatization.  Therefore, the amount s received were allocated for modernization of 
machinery, repair of roofs on two manufacturing facilities and payment of salaries to workers who have worked on repairs and safeguarding the company property. 
The interest rate for the loans is two per cent a nnually.  Loans should be repaid when the conditions 
for privatization are fulfilled.  "Obod" is the sole recipient of these loans. 
Favourable loans did not have any effect on comp etition in Montenegro because the company was not 
operational in recent years. The purpose of loans is to safeguard the assets of the company until it is 
privatized.  However, the future buyer of the compa ny will nevertheless have to invest substantially in 
order to make the company operational. 
Question 14 
SUPPORT FOR ECONOMIC ACTIVITIES:  Coul d you please further explain the policy 
objective for this programme and specifically ex plain what is meant by "to increase the overall 
competitiveness of companies?" 
Please explain what the eligibility criteria are in order to receive the grants under this 
programme. 
How are the amounts, which are provided to each  company, determined?  Do companies which 
compete internationally receive a higher level of  subsidies?  If so, please further explain. 
Answer:
 
The assistance under the programme has been provide d to companies in different sectors.  The 
purpose of the programme is improvement of operatio n and enabling companies to operate in the open 
market economy, improvement of business practi ces and transfer of managerial know-how.  
The assistance has been provided to economic operators in a number of industrial and services 
sectors, in order to support their development, notab ly to those that have substantial business potential 
and a positive approach towards improvement of management and business practices.  The amounts 
granted were relatively low and cannot substantia lly affect the performance of the company.  
Exposure to international competition does not aff ect granting or the amount of assistance.  Economy 
of Montenegro is open to international competition.   
- Technical barriers to trade, standards and certification 
Question 15 We take note of the changes to Montenegro’s the Decree on Manner of Authorizing Conformity 
Assessment Bodies, Register of Authorized  Conformity Assessment Bodies, Records on 
Certificates of Conformity, Conformity Marks and Conformity Assessment Bodies, and the 
Conditions for Applying Technical Regulations of Other Countries (S&M OG No. 22/06), and 
the Decree on Manner of Preparing and Adopting Technical Regulations and Register of Such  WT/ACC/CGR/27 
 Page 7 
 
 
 Regulations (S&M OG No. 17/06) that the repres entative of Montenegro has outlined in 
previous discussions.  We realize that these efforts are still underway, but look forward to reviewing the revised laws wh en they are completed.  
Regarding the review of all quality control regulations described in paragraph 114 of the 
Factual Summary, please provide further detail on this review, specifically what is the 
timeframe and how will the review be undertaken?  In addition, please provide an update on the Revised Strategy for Quality Infrastructure Development in Montenegro that was to be 
adopted in April 2007. 
Answer
: 
Montenegro has committed to review  all the regulations governing qualit y control in order to provide 
full compliance with the TBT Agreement.  The Revised Strategy for Quality Infrastructure 
Development was adopted on 7 June 2007 and is targeted to harmonization of the food and 
environment safety standards, as well as standards of safety at work with international standards.  The 
intention is to withdraw all standards which are not harmonized with the international ones.  The 
review begun in December 2007 and is expected  to take more than a year to complete. 
Question 16 With regards to information on the use of in ternational and regional standards discussed in 
paragraph 116 of the Factual Summary, we would remind Montenegro of the WTO TBT Committee Decision (G/TBT/1/Rev.8), which identified the key principles of international standards, including transparency, openness,  impartiality and consensus, relevance and 
effectiveness, coherence and developing country in terests.  We would encourage Montenegro to 
use these principles to identify internationa l standards.  We would add that the WTO 
TBT Agreement gives priority to internatio nal standards over regional standards.  
According to paragraph 116 of the Factual Summary, the Institute for Standardization of 
Montenegro intends to adopt the remainder of some 21,000 European Union standards by the 
end of the harmonization process.  Is Monteneg ro considering adopting any international 
standards in lieu of European standards?  If yes, please provide examples.   
Answer:
 
Yes, Montenegro will adopt international standa rds which are related to Montenegrin strategic 
development priorities, i.e. standards related to f ood, tourism, transport, environment etc.  Where 
there are no adequate international standa rds European standards will be adopted. 
Montenegro thanks for the reminder of the D ecision of the WTO TBT Committee on Principles for 
the Development of International Standards, Guid es and Recommendations and commits to take into 
account all the key principles referred to in the Decision when defining international standards. 
Question 17 
Could the representative of Montenegro provide an  update on the status of the draft Decree on 
Notification of Technical Regulations, Sta ndards and Conformity Assessment Procedures 
mentioned in paragraph 117 of the Factual Summary?  Will Montenegro share a draft of this Decree with the Working Party?   WT/ACC/CGR/27 
Page 8 
 
 
 Answer:  
The draft Regulation on Notification of Technical Re gulations, Standards and Conformity Assessment 
Procedures has been submitted to the Secretariat on 12 July 2007.  Montenegro believes that the draft, 
which is in the final stages of the adoption pro cedure, is compliant to the TBT Agreement.  
Subsequent to the adoption by the Government, the Regulation will be submitted to the Working 
Party. 
- TBT Action Plan (WT/ACC/CGR/21)  
Question 18 
Montenegro’s TBT Action Plan notes that the De cision on Establishment of the Accreditation 
Body would be adopted by the end of June 2007: 
- Has this Decision been adopted? 
- Will Montenegro provide a translation for the Working Party’s review? 
Answer:  
Yes, the Decision on Establishment of the Mo ntenegrin Accreditation Body was adopted on 
29 March 2007 and the Acting Dire ctor was appointed on 10 May2007.  Montenegro will provide 
translation of the Decision before the next Working Party meeting.  
- Draft Law on Standardization  
Question 19 
With regards to the definitions in Article 2, we urge Montenegro to revise the definitions for the 
terms that are defined in the TBT Agreement, su ch as "standard", "international standard", 
and "conformity assessment" so that the defi nitions match those in the TBT Agreement.   
Answer:  
Final drafts will include definitions comp liant to those in the TBT Agreement. 
Question 20 
Statement:  With regard to the list of internatio nal standards organizations in Article 2.13, we 
note that neither the TBT Agreement nor th e TBT Committee has ever established a list of 
recognized international standards organizations.  Furthermore, we remind Montenegro of the 
Decision of the TBT Committee on Principles for the Development of International Standards, 
Guides and Recommendations with Relation to Articles 2, 5 and Annex 3 of the Agreement 
(G/TBT/1/Rev.8, section IX, 23 May 2002), which sets out principles for the development of international standards.   
We commend the inclusion of Article 3.9 that obligates Montenegro to use "international 
standards or their relevant parts, when they exis t or their completion is imminent, as the basis 
for Montenegrin standards."  Please describe  how the obligation will be implemented in 
practice given the obligation in Article 10(2) that allows Montenegrin standards to be "based on European or international standards".    WT/ACC/CGR/27 
 Page 9 
 
 
 Answer:  
Montenegro will adopt international standards,  which are related to Montenegrin strategic 
development priorities, i.e. standards related to f ood, tourism, transport, environment etc.  Where 
there are no adequate international standard s, European standards will be adopted.   
Question 21 With regard to Article 22, please clarify whet her Yugoslav and Serbian-Montenegrin standards 
currently in use will continue to be applied in  Montenegro until a Montenegrin standard is 
adopted. 
Answer:
 
Many of Yugoslav standards, which used to be ma ndatory, will continue to be used as voluntary 
standards in Montenegro, under the appropriate pr ocedure, provided that those are relevant for 
Montenegro. 
- Law on Technical Requirements and Conformity Assessment of Products  
Question 22 
With regards to the definitions in Article 4, we urge Montenegro to revise the definitions for the 
terms that are defined in the TBT Agreement, su ch as "technical regulation" and "conformity 
assessment" so that the definitions ma tch those in the TBT Agreement.   
Answer:  
Final drafts will include definitions comp liant to those in the TBT Agreement. 
Question 23 
We note the list of justifications for adopting t echnical regulations in Article 5.  Please provide 
further explanation of the "protection of property and protection of other public interests" justifications.    
Answer:
 
The purpose of adopting technical regulations is saf ety and functionality of products.  Safety of 
products is comprehensive consumer protection with respect to protection of health, environment, fire 
protection or trade related issues.  
Question 24 
In a number of Articles (Articles 5, 11, 18, 19, and 22) there is reference to a separate regulation 
that is forthcoming.  What is the status of these regulations? 
Answer:  
Regulations referred to Articles 5, 11, 18, 19, and 22 are the implementing regulations that provide 
detailed provisions for implementation of the law.  These include the following: Regulation on 
Notification of Technical Regulations, Standards and Conformity Assessmen t Procedures, Regulation 
on the Manner of Preparing and Adopting Technical Regulations and Register of Such Regulations WT/ACC/CGR/27 
Page 10 
 
 
 (S&M OG No. 17/06),  Regulation on the Manner of  Authorizing Conformity Assessment Bodies, 
Register of Authorized Conformity Assessment Bodies, Records on Certificates of Conformity, 
Conformity Marks and Conformity Assessment Bo dies, and the Conditions for Applying Technical 
Regulations of Other Countries (S&M OG No. 22/06). 
Question 25 With regards to the comment period in Article 7(1)4, please describe what timeframe is being 
considered.  We note that the TBT Committee has recommended a 60 day comment period.  
Answer:
 
Montenegro will accept the TBT Committee’s re commendation and will include a 60 day comment 
period in the new law, which is pending adoption. 
Question 26 
Article 8(1) urges harmonization to "technical regulations with those of the European Union 
and technical regulations within the framew ork of international agreements binding on 
Montenegro."  The TBT Agreement gives primac y to international standards that fulfil the 
principles outlined in the Decision of the TBT Committee on Principles for the Development of 
International Standards, Guides and Recommenda tions with Relation to Articles 2, 5 and 
Annex 3 of the Agreement (G/TBT/1/Rev.8, section IX, 23 May 2002).  How does this article comply with the obligation in the TBT Agreement? 
Answer:
 
Montenegro has included all the principles listed in  the above-mentioned Decision in its draft Law on 
Technical Requirements and Confor mity Assessment of Products. 
- Sanitary and phytosanitary measures 
Question 27 In response to Question 14 of WT/ACC/CGR/24, Mo ntenegro indicated that the Draft Law on 
Food Safety would be available in June 2007.  We see that Part VII of this law has been 
provided to the Secretariat.  Is Part VII the only portion of the law that has been amended?  If 
not, will Montenegro be providing the re maining Chapters to the Working Party?  
Answer:
 
The Law on Food Safety was passed by the Parliament on 29 November 2007.  The translation of the 
Law will be submitted before the next Working Party meeting. 
Question 28 
During the last Working Party meeting, we  expressed concern ov er the absence of clear 
language on transparency in the Law of Plan t Protection.  In response to Question 16 of 
WT/ACC/CGR/24, Montenegro stated that it would include the appropriate language.  Please confirm that the revised text on Plant Protection includes the modified language.    WT/ACC/CGR/27 
 Page 11 
 
 
 Answer:  
Article 12 paragraph 6 of the Law on Plant Protection provides for the "... manner of their notification 
in accordance with the obligations arising from a ppropriate international agreements shall be 
prescribed by the Ministry of Agri culture, Forestry and Water Mana gement".  This provision means 
the obligation to adopt a regulation whose content will be transparency/notification.  This regulation is 
actually the Regulation on Notification Procedures of  SPS measures, which is compliant Annex B of 
the SPS Agreement.  The translation of the Regul ation will be submitted before the next Working 
Party meeting. 
Question 29 
In response to Question 18 of WT/ACC/CGR/24, Montenegro explained that it expected to 
become a member of the OIE and in May 2007.  Wh at is the status of Montenegro’s application 
to OIE, IIPC, and Codex? 
Answer:  
At the 34th Session of the Food and Agriculture Organi zation, which was held on 17 November 2007, 
Montenegro has become the member of FAO.  F AO membership is very important for Montenegro 
because it will enable accession and ratifica tion FAO conventions - IPPC and Codex.  
Montenegro has submitted an official request for membership to the OIE with necessary accompanied 
documentation. 
Question 30 
Article 33 of the Veterinary Law, in the section  on Preventive Veterinary Measures, Facilities 
and Animals from other Countries, states that im ports are allowed from only "such facilities 
which comply with the prescribed requirements, a re registered in the European Union, and are 
under the control of relevant veterinary bodies. "  However, the following paragraph provides 
that other facilities can become eligible for impo rtation of food, raw materials, products, feed 
and waste.  Please clarify what "other facilities"  can become eligible, and describe the process 
for gaining such approval.  How does this provisi on coincide with the concept of equivalency?  
Answer:  
Montenegro has amended the Veterinary Law (RM OG No. 27/07) in order to make it fully compliant 
with the concept of equivalency in accordance with recommendations. 
Article 33 of the Veterinary Law prescribes that impor t of products of animal origin are allowed only 
from such facilities which comply with the prescribed  requirements, are registered in the European 
Union, and exceptionally from other facilities, afte r establishing that the regulations, standards, 
products and system of veterinary-sanitary contro l performed by the exporting country are at least 
equivalent to the regulations of Montenegro, and wh en at least equivalent protection of consumers is 
guaranteed.  This provision does not contravene the SPS Agreement.  On the c ontrary, the principle of 
"national treatment" has been observed, i.e. e xport facility and exporting country have to meet 
requirements identical to those required from any domestic producer or a domestic product.  This 
provision prescribes that there is no privilege for the facilities that are register ed for the export in the 
European Union.  If certain exporting country appl ies regulations which are identical or at least 
equivalent to the regulations of  Montenegro the competent author ity will issue approval for import 
from the facility from such an exporting country.  WT/ACC/CGR/27 
Page 12 
 
 
 After submitting request for import in Montenegro , Veterinary Administration elaborates submitted 
documentation and performs risk assessment for im port from certain facility taking into account 
operating system of veterinary-sanitary control in exporting country, epizootiological situation, 
standards and recommendations of OIE and other rele vant organizations, and may perform control of 
facilities in order to establish whether there are ve terinary and sanitary obstacles for import.  After 
establishing that the regulations, standards and syst em of veterinary-sanitary control, which are 
performed by the exporting country, are at least equi valent to the regulations of Montenegro, import 
will be approved.   
Question 31 
We are pleased to read that notification of 75 da ys is required before the adoption of proposed 
sanitary-veterinary measures and the Veterinary Administration is obliged to publish a notice 
of the intention to introduce a measure at an ea rly stage of its development, as described in 
paragraph 126 of the Factual Summary.  Wh ere is this notice to be published?   
Answer:  
A notice is to be published on the official web site of the Ministry of Agriculture, Forestry and Water 
Management (www.minpolj.vlada.cg.yu ). 
Question 32 
We note that, according to paragraph 128 of  the Factual Summary, Montenegro intends to 
amend the Law on Genetically Modified Organisms  (FRY OG No. 21/00).  In addition, we note 
that the updated Legislative Action Plan (WT/ACC/CGR/12/Rev.2) identifies the deadline for 
amending the Law on Genetically Modified  Organisms as December 2007.  While the 
Legislative Action Plan does not indicate that an  initial draft has been completed, we welcome 
the opportunity to review it when it is made available.  In the meantime: 
- Please describe the changes anticipated by the amendments; and 
- Do the former procedures apply in the interim? 
Answer:  
The Ministry of Agriculture, Forestry and Water Ma nagement has prepared the draft of the new Law 
on Genetically Modified Organisms, which is currently placed in the inter-ministerial review procedure.   
The draft Law on Genetically Modified Organisms prescribes conditions for the GMO use in closed 
systems (laboratory, glass house), intentional introdu ction of GMO in the environment, placing on the 
market of GMO or products that contain GMO or a combination of GMO or products produced from 
GMO (import, export and/or internal circulation), handling, transport, packing, transit through the 
territory of Montenegro, marking of products which contain GMO or a combination of GMO and products produced from GMO, cond itions and measures for the preven tion and elimination of adverse 
effects of GMO use, inspectorial supervisi on of the enforcement of this Law, etc. 
The purpose of the Law is to protect the health an d the environment, to enable transportation of 
approved GMO products, to provide choice for cons umers and to provide control and supervision 
over economic operators dealing in GMO. 
The former procedures under the Law on Genetica lly Modified Organisms (FRY OG No. 21/00) 
apply in Montenegro in the interim.   WT/ACC/CGR/27 
 Page 13 
 
 
 - Check-list of Illustrative Sanitary  and Phytosanitary (SPS) Issues 
(WT/ACC/CGR/19)  
Question 33 
We appreciate the detailed and well-documented response that Montenegro has provided in its 
latest SPS checklist of action steps taken to bring its national SPS measures into compliance 
with the obligations of the WTO Agreement on  Sanitary and Phytosanitary Measures.  The 
integration of these obligations into Montenegro’s  laws covering veterinary, plant, and food 
safety is exemplary.  However, in the interest of transparency, we would like some clarification 
on the actual mechanisms that will perform these obligations.  
In the response to Commitments, Box 2, we note that the "three laws," the Veterinary Law, the 
Law on Plant Protection, and the Law on Food Safety, clearly delineate the oversight authority 
for these three areas.  However,  Montenegro has yet to establish a single SPS National 
Notification Authority to notify domestic SPS legislation to the WTO Secretariat for public 
comment by WTO Members or an SPS Enquiry Point to receive and respond to comments 
submitted by Members.  As SPS measures may ofte n impact trade in plant, animal and food 
commodities simultaneously, when and where does  Montenegro intend to establish a single SPS 
National Notification Authority and a single SPS Enquiry Point? 
Answer:  
Under Article 3 of the draft Regulation on Notification Procedures of SPS Measures the Ministry of 
Agriculture, Forestry and Water Management is  notification authority responsible for providing 
information and notification with respect  to sanitary and phytosanitary measures.  
The Ministry, acting as the enquiry point, provides  answers to all reasonable enquiries from the 
Members of relevant international organizations and other interested parties and notifies the following: 
- Any sanitary or phytosanitary regulatio ns adopted or proposed in the Republic; 
- Any control and inspection procedures, pr oduction and quarantine tr eatment, pesticide 
tolerance and food additive approval pr ocedures, which are operated in the 
Montenegro; 
- Risk assessment procedures, factors take n into consideration, as well as the 
determination of the appropri ate level of sanitary or phy tosanitary protection; and 
- The membership and partic ipation of the Republic or of its relevant bodies, in 
international and regional sanitary and phytos anitary organizations a nd systems, as well 
as in relevant bilateral and multilateral ag reements and arrangemen ts, and the texts of 
such agreements and arrangements. 
Where available, the Ministry may provi de any other relevant information. 
The draft Regulation on Notification Procedures of SPS will be submitted before the next Working 
Party meeting. 
Question 34 With respect to Commitments, Box 3, when will  Montenegro establish an official journal to 
publish and disseminate all draft SPS measures for public comment prior to adoption and 
enforcement?  Where will Montenegro’s Minist ries go to announce trade measures that may 
have SPS impact and SPS measures that may have tr ade impact?  In particular, with respect to WT/ACC/CGR/27 
Page 14 
 
 
 Box 3, Item d, when will Montenegro publish and implement a law requiring that all trade- and 
SPS-relevant measures are to be published in that official journal? 
Answer:  
Prior to adoption and enforcement, any draft of SPS measures will be published on the official web 
site of the Ministry of Agriculture, Forestry a nd Water Management (www.minpolj.vlada.cg.yu) or on 
web site of any other administrative authorities, which enact those regulations, requesting public 
comments and public discussion.  Subsequent to  the prescribed procedure for preparation and 
adaptation, those regulations are published in the Official Gazette of Montenegro. 
Question 35 
With respect to Commitments, Box 4, what provision s are there in the legislation of Montenegro 
that would guarantee the right of the private sector to comment on Montenegro’s draft SPS 
measures?  While the "Three Laws" contain lang uage that commit relevant ministries to draft 
SPS measures that achieve an appropriate level of  protection and are no more trade restrictive 
than necessary, there is no language allowing  for comment by industry.  What steps will 
Montenegro take to ensure that industry has fu ll access to draft measur es for public comment 
prior to implementation? 
Answer:  
Provisions of the Law on State Administration (RM OG No. 38/03) and provisions of the draft 
Regulation on Notification Procedure of SPS Measur es ensure the right of the private sector to 
comment on Montenegro’s draft SPS measures.  
Question 36 With respect to Commitments, Box 9, Montenegro  clearly states how international standards of 
the three international bodies, The World Organiz ation for Animal Health (OIE), International 
Plant Protection Convention (IPPC), and Code x Alimentarius, will be the reference standards 
for developing Montenegro’s SPS measures and f ood standards.  However, we fail to see any 
regulatory obligation to notify any of these bodies  of changes in Montenegro’s disease, pest, and 
quarantine status.  We also do not see any reference as to how relevant ministries will 
participate and coordinate Montenegro’s policy wi th respect to international food standards.  
What steps will Montenegro take to ensure time ly reporting of changes in animal and plant 
health status to the OIE and IPPC, and what steps will it take to ensure coordination and 
harmonization of domestic food standards with those of the Codex Alimentarius?   
Answer:
 
Montenegro is a member of the Food and Agriculture Organization from 17 November 2007 and thus 
Montenegro has met the requirements for membership  in IPPC.  IPPC membership implies obligation 
of timely notification on IPPC portal. 
Article 9 of the draft Rulebook of Classification, Manner of Notification and Application a Suspicion 
of Infectious Animal Disease, Reporting Emergence and Cessation of Animal Diseases, as well 
Format and Content of Prescribed Form, provid es for the obligatory international notification 
(obligatory notification relates to diseases from th e OIE list) and the manner of notification in 
accordance with OIE.  The administrative authority  responsible for the veterinary (Veterinary 
Administration) performs notification.  It is expect ed that this rulebook will be adopted prior to the 
next Working Party meeting.   WT/ACC/CGR/27 
 Page 15 
 
 
 The Law on Food Safety and its implementing regulat ions will ensure coordi nation and harmonization 
of domestic food standards with t hose of the Codex Alimentarius.  Codex Alimentarius standards are 
integral part of the current legal system in Mont enegro in the area of food safety because former FR 
Yugoslavia was a member of FAO.  
Question 37 Please identify Montenegro’s labelling and packaging requirements for food. 
Answer:
 
Labelling and packaging of food are regulated by  the Rulebook of Declaration and Labelling of 
Packed Foodstaffs (S&M OG Nos. 4/03, 12/03), the Rulebook on Conditions of Health of Dietary 
Foodstaffs which Can be Placed into Circulation (SFRY OG Nos. 4/85, 70/86, 69/91) and the Law on 
Health of Foodstuffs and Items of General Use (F RY OG No. 53/91).  Under this Law, the food is 
sanitary incorrect if: 
- The food does not have a declaration; 
- The shelf life cannot be determined from declaration; and - The declaration is damaged, unreadable or on some other way incomprehensible for 
consumers. 
A declaration must also include nutritional facts. 
Question 38 
What are Montenegro’s rules for shelf life?  Are they compatible with in ternational guidelines 
such as CODEX? 
Answer:
 
The new Law on Food Safety ensures compliance of the rules for shelf life with international 
guidelines.  
Question 39 
We hope to be able to review drafts of the Decree on Notification Procedures of SPS Measures 
and the Food Safety Law when they become available.   
Answer:  
The Law on Food Safety and the draft Regulation on Notification Procedures of SPS Measures will be 
submitted before the next Working Party meeting. 
- Trade-related investment measures 
Question 40 
Paragraph 130 of the Factual Summary descri bes a requirement in Montenegro’s Law on 
Tobacco that requires domestic producers to pu rchase a certain percentage of domestically 
produced tobacco.  Such a provision would appear to violate the prohibition against domestic content requirements.  How will Montenegro bring this provision into compliance with its WTO 
obligations?   WT/ACC/CGR/27 
Page 16 
 
 
 Answer:  
The Law currently applied prescribes that manufactur ers of cigarettes and other tobacco products in 
Montenegro must every year produce or purch ase domestic processed t obacco in the quantity 
equivalent to at least 40 per cent of their own yearly production of cigarettes and other tobacco 
products, but not less than 700 tons per year (Ar ticle 15 of the Law on Tobacco RM OG Nos. 80/04 
and 05/05).  This provision has been introduced in th e Law due to the fact that, at the time of adoption 
of the Law, Montenegro had annual production of raw tobacco of more than 1,000 tons.  Volume of 
production has been reduced over time, and, at present,  it is maintained at the level of 500 to 600 tons 
annually.  
Montenegro emphasizes that the production of tobacco  is performed within a specific region near the 
Skadar Lake, where the soil is not suitable for grow ing of any other crops.  Production of tobacco was 
the main source of income for around 50 0 families in disadvantaged rural areas. 
Since raw tobacco is, by its nature, a specific co mmodity, tobacco farmers are fully dependent on the 
processing industry.  In addition to purchase of raw tobacco, Duvanski kombinat Podogrica (Tobacco Company), the sole producer of tobacco products  in Montenegro, also provided full professional 
support related to planting, protection and harves ting to farmers engaged in production of raw 
tobacco.  
The new Law on Tobacco, which is expected to be  adopted by the Government prior to the next 
Working Party meeting, will abolish the require ment related to purchase expressed in per cent 
(40 per cent), and will define the obligation to purc hase domestic processed toba cco in the quantity of 
300 tons in 2008, with gradual annual reduction in quantitie s which will be implemented by 
31 December 2011 when this obligation will be fully abolished. 
- State-trading entities 
Question 41 Paragraph 133 of the Factual Summary refers ex clusively to enterprises with exclusive or 
special rights or privileges.  We recall, howev er, that the obligations of Article XVII of the 
GATT 1994 (as opposed to the Understanding on that Article) apply not only to such enterprises, but also to those enterprises owned or controlled by the State, regardless of their 
privileged trading status.  We request that Montenegro confirm this understanding of GATT 
Article XVII, as Montenegro will be expected to undertake a commitment reflecting its intention to ensure that all enterprises covered by Article XVII comply with those obligations.  
We would also appreciate, given the absence of ent erprises with special or exclusive privileges in 
Montenegro, a description of Montenegro’s larg est State-owned and -controlled enterprises, 
including information on the sectors in which they  operate, the extent of the State’s involvement 
in the commercial decisions of the enterprise (e .g., through participation on management boards 
or requirement of State approval of board deci sions), and any laws/regulations governing the 
sales/purchasing decisions of those enterprises. 
Answer:
 
In Montenegro, there are no enterp rises owned or controlled by the state that have privileged trading 
status, as referred to in GATT 1994 Article XVII and in the Understanding on the Interpretation of 
Article XVII of the General Agreement on Tariffs a nd Trade 1994.  The state still has control or has a 
majority of shares in a number of enterprises.  However, none of these have been granted special 
rights or privileges that would enable them to a ffect, through their purchases or sales, the level and 
direction of imports and exports.  WT/ACC/CGR/27 
 Page 17 
 
 
 The table below shows Montenegro’s largest en terprises, including information on the sectors in 
which they operate and share of State’s capital. 
No Company Sector % of State Capital 
1. "Plantaze" AD Podgorica Agricu lture (production of fruits 
and alcohols) 54.23% 
2. "Termoelektrana Pljevlja" Energy services Assets of 
"Elektroprivreda Crne Gore"AD, Nikši ć 
3. "Elektroprivreda Crne Gore" AD, 
Nikšić Energy services 67.6599% 
4. "Duvanski kombinat" AD, Podgo rica Tobacco industry 51.1046% 
5. "Željeznice Crne Gore" AD, Podg orica Railway transport 68.8596% 
6. "Montenegro airlines" DOO, Podgorica Air transport 99% 
7. HTP "Budvanska rivijera" AD, Budva Tourism services 58.7334% 
8. HTP "Ulcinjska rivijera" AD, Ulcinj Tourism services 60.7311% 
9. Institut "Dr Simo Miloševi ć"AD, Igalo Relaxation, recreation and health 
therapy services 56.4806% 
10. "Luka Bar"AD, Bar Transport services (port) 54.0527% 
 
- Agricultural policies 
- Domestic Support and Export Subsidies in  the Agricultural Sector; Questions and 
Answers (WT/ACC/SPEC/CGR/1/Add.2)  
Question 42 Regarding the response to Question 3, are the rare local breeds of animals that Montenegro 
subsidizes marketed commercially? 
Answer:
 
Montenegro only subsidises rearing of very limited number of animals of rare breeds (two herds of 
cattle and few flocks of sheep and goats) as the an imal genetic resources.  The farmers must keep 
those animals at least three years or until the end of animals’ productive life.  Thus, farmers can not 
take subsidies and then sell the animals.  Farmers ha ve to take care of rearing replacements.  Once 
replacing animals start production, farmers can cull ol d animals from the herd or flock, in order to 
maintain the number of animals for which they recei ved support.  In addition, commercial value of the 
animals of rare local breeds in comparison with  more productive imported breeds is much lower.  
Therefore, the number of animals of rare breeds constantly decreases.  
Question 43 
In response to Question 6, Montenegro explains  that "Reason for this subsidisation is the 
tobacco production sector, that was very develo ped before dissolution of ex Yugoslavia, was 
almost diminished during the nineties - period of economic sanctions against Serbia and 
Montenegro imposed by International Community". 
If the objective of tobacco subsidies is to he lp tobacco production recover are there plans to 
phase out subsidies once that objective is achieved? WT/ACC/CGR/27 
Page 18 
 
 
 Answer:  
The new strategy:  ''Montenegro’s agriculture a nd the European Union - Food Production and Rural 
Development Strategy'', adopted in July 2006, fo resaw the reform of the agricultural policy in a 
manner that all subsidies linked to the production w ill be fully decoupled from the level of production 
and linked to the acreage of used arable land.  This re form will be done in the next three years.  It has 
to be noted, that the amount of subsidies per unit of product (kg of tobacco) has not been increased, on 
the contrary, in last three years there were some corrections to lower the amount of subsidy per kg of 
tobacco. 
Question 44 
Regarding Montenegro’s discussion of "Rye, barl ey and buckwheat" in response to Question 6, 
these products are widely grown in many parts of  the world.  Please explain what considerations 
make it necessary for Montenegro to provide subsidies for seeds and mechanization for its 
farmers for these crops? 
Answer: 
Cereal production in Montenegro is very limited in terms of the area cultivated and volume of 
production.  Practically, there is no commercial producti on of cereals, in spite of fact that there is a 
quite large area of available arable land in the northern part of the country.  New farmers who see the possibility in production of specific, unique cereals, like buckwheat and ray, mainly for special kind 
of flour, are facing two main constraints: how to  buy quality seeds and how to provide machinery for 
crops harvesting.  In order to help farmers to overcome problems of purchasing quality seeds and 
harvesting of the crops (ray, barley and buckwheat ) as the main bottle-necks, the Ministry provides 
subsidies for seeds and mechanization.   In accordance to the reform of Agricultural policy foreseen by 
the Strategy, Ministry is going to convert this fo rm of subsidization to the acreage based payments, 
fully decoupled from the production.  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- SUBSTANTITIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Trademarks, including service marks Question 45 In the last sentence of paragraph 171 of the Factual Summary there is a statement that a 
registered trademark could be declared void if it is determined that at the time of approval the 
legal conditions had not been met.  Is the invalidation done ex officio ?  How is this situation 
discovered by the office? 
Answer:
 
Under Article 50, paragraph 1 of the Trademark Law (FRY OG Nos. 61/04 and 07/05), the decision 
on trademark registration and/or an international registration of a trademark may be annulled, in 
whole or for some goods and/or services comprised,  if it is determined that, at the time of issuance of the decision, the requirements for trademark registra tion prescribed by this Law have not been met.  WT/ACC/CGR/27 
 Page 19 
 
 
 Under Article 51, paragraph 1 of the Trademark Law, the IP Office will act ex officio  if the Office is 
informed in any way, including information provided  by any interested party, that the requirements 
for trademark registration have not been met. 
Question 46 
Regarding paragraph 178 of the Factual Summary and the response to Question 91 of 
WT/ACC/CGR/23, will the laws of Montenegro pr ovide the means for the owner of a prior-in-
time trademark to object to the registration, and/or seek invalidation, of a later-in time geographical indication or appellation of orig in?  Will the laws of Montenegro limit the 
protection of a later-in-time geographical indication  or appellation of origin to the language in 
which it is registered?  Will the laws of Mo ntenegro ensure that a geographical indication 
and/or appellation of origin will not be regist ered in light of a prior-in-time trademark’s 
reputation and renown when registration is likely to  cause confusion as to the true source of the 
product? 
Answer:
 
Montenegro will fulfil the commitment taken in the answer to Question 91 of WT/ACC/CGR/23 by 
redrafting the Law on Geographical Indications and thus resolve the issue.  
- Geographical indications, including appellations of origin 
Question 47 Paragraph 175 of the Factual Summary and the responses to Questions 108 and 112 of 
WT/ACC/CGR/23 indicate that any public document verifying that the appellation of origin or 
the geographical indication has been recognized in the country of origin, including an affidavit, 
will meet the "recognition" requirement.  In countries that protect marks under common law, 
there may be no "public" document to support pr otection.  Will the laws of Montenegro allow 
for owners of geographical indications to provide  their own affidavit attesting to the protection 
in such a country of origin? 
Answer:
 
Yes, if such an affidavit is, under the laws of the c ountry of origin, sufficient proof of the existence of 
the right, i.e. protection in the country of origin. 
Question 48 
Regarding paragraph 174 of the Factual Summary and the response to Question 110 of 
WT/ACC/CGR/23, can a registered geographical indication or appellation be registered 
indefinitely, even after it ceases to meet the legal conditions?  In other words, if the geographical 
indication or appellation of origin meets the co nditions when it is registered but subsequently 
fails to meet those conditions, may the registration be cancelled? 
Answer:  
Under the Law Indications of Geographical Origin  (SM OG No. 20/06), an appellation of origin is 
defined as shall be the geographical name of a c ountry, region or a locality, used to designate a 
product originating therein, the quality and character istics of which are due exclusively or essentially 
to the geographical environment, including natu ral and human factors, and which is produced, 
processed or prepared within a specific limited geographical area. WT/ACC/CGR/27 
Page 20 
 
 
 Geographical indication is defined as the indicati on that identifies certain goods as goods originating 
from the territory of specific country, region or a lo cality within such territory, where specific quality, 
reputation or other characteristics of the goods can  be essentially attributed to their geographical 
origin. 
The goods or products that meet the above requirement s can be protected by an appellation of origin 
or a geographical indication, as the case may be.  Pe riod of validity of the registered appellation of 
origin or a geographical indication is not be limited. 
Status of the authorized user of a registered appe llation of origin or a geographical indication, on the 
other hand, is limited to three years after the entry into the appropriate Register. 
Upon the application of the authorized user of an appellation of origin or a geographical indication, 
accompanied with the evidence that requirements prescribed by this Law have been met and that the 
prescribed fee has been paid, the status of an author ized user can be renewed perpetually, for as long 
as the appropriate appellation of origin or a geographical indication is valid. 
Upon the written application of an interested pe rson, a decision to register an indication of 
geographical origin may be cancelled, if the re sponsible authority (IP Office) determines that 
requirements for the registration of an indication of geographical origin have not been met at the time 
of the decision was issued. 
Registered appellation of origin or registered ge ographical indication will cease to be valid when their 
protection in the country of origin terminates. 
Registered geographical indication will cease to be valid upon the court decision, where it has been 
established that a geographical indication has become generic, i.e. usual name for certain product. 
Question 49 
When will the next draft of the Geographica l Indications law be available for review? 
Answer:  
Redrafted Geographical Indications Law will be ava ilable for review before the next Working Party 
meeting. 
- Requirements on undisclosed information,  including trade secrets and test data 
Question 50 Montenegro’s most recent Legislative Action Plan (WT/ACC/CGR/12/Rev.2) indicates that the 
"Law on Undisclosed Information" has been accepted by the Government as of 12 July 2007.  When will Montenegro provide a copy of this law to the Working Party? 
Answer:
 
The translation of the Law on Undisclosed Inform ation will be provided before the next Working 
Party Meeting.  WT/ACC/CGR/27 
 Page 21 
 
 
 - ENFORCEMENT 
- Civil judicial procedures and remedies Question 51 With respect to the response to Question 95 of WT/ACC/CGR/23, please provide a copy of the 
provision of the Law on Civil Procedures that provides for the compensatory damages including 
attorney’s fees, available to the winning party. 
Answer:
 
The right to compensatory damages is provided for in each of the substantive intellectual property 
laws that were submitted to the Secretariat earlier. 
In addition, the following provisions of the La w on Civil Proceedings, (RM OG No. 22/04, 28/05, 
76/06) provide for compensation of attorney ’s fees, available to the winning party: 
 Article 149  
 Costs of the proceedings shall comprise costs incurred within or those incurred in relation to 
the proceedings. 
 Costs of the proceedings shall include attorney ’s fees and fees of any other persons who are 
entitled to collect fees un the law.  
 Article 151, paragraph 1  
 The loosing party must reimburse the costs of  the proceedings to the opposing party (winning 
party) and any of its co-parties. 
 Article 153  
 When deciding on the amount of costs the court shall take into account only the costs that 
were necessary for the participation in the pr oceedings.  When deciding on what costs were 
necessary, as well as on the amount of costs, th e court shall carefully examining all the 
circumstances of the case. 
 Attorney’s fees shall be determined in acco rdance with the applicable schedule of fees1. 
 Article 161, paragraph 4  
 The decision on the costs of the proceedings sha ll be issued simultaneously with the decision 
ending the proceedings.   
- Criminal procedures 
Question 52 Paragraph 204 of the Factual Summary states that  Montenegro's Criminal Code provides "for 
the confiscation, or confiscation and destruct ion of infringing goods, and material and 
                                                     
 
1 Schedule of Fees for Attorneys’ Services is  the one established and maintained by the Bar 
Association of Montenegro. WT/ACC/CGR/27 
Page 22 
 
 
 implements used to commit the offence".  Please indicate whether the materials and 
implements, the predominant use of which has b een in the commission of the offence, are 
subject to destruction and the relevant provision. 
Answer:  
The Penal Code provides for the confiscation, or co nfiscation and destruction of infringing goods, and 
material and implements used to commit the crimin al offence, regardless of the level or manner of 
use.  Therefore, it is not necessary to prove that  the use was "predominant".  Thus, the level of 
protection exceeds the one referred to in TRIPS Article 61. 
Question 53 
With respect to the recent amendments to the Penal Code mentioned in response to 
Question 100 of WT/ACC/CGR/23, please describe th e level of infringing activity required to 
initiate criminal prosecution for each type of IPR infringement and the level of infringing 
activity required for imprisonment to be or dered.  Does the Penal Code provide for the 
destruction of materials and implements the p redominant use of which has been the commission 
of the offence as required by Article 61 of TRIPS? 
Answer:  
The level of infringing activity required to initia te criminal prosecution for each type of IPR 
infringement and the level of infringing activity re quired for imprisonment to be ordered are not 
prescribed in advance.  Therefore, any level of  infringing activity may be subject to criminal 
prosecution.  The penalty, including imprisonment, it s kind and duration, if applicable, is determined 
by the court taking into account all the circumstance s of the case.  For the lower level of infringing 
activity the penalty is mere lenient, whereas where th e level is high, the pena lty is more harsh, and 
may include imprisonment.    
VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 54 
Paragraph 209 of the Factual Summary mentions a new Law on Telecommunications.  What is 
the status of this law?  What are the signific ant changes from the old telecommunications law? 
Answer:  
The new Law on Electronic Telecommunications is under preparation at the moment.  The Draft is 
expected to be approved by the Gove rnment by the end of January 2008. 
Question 55 
Paragraph 211 of the Factual Summary makes re ference to new Insurance Law, which took 
effect on December 2006.  This law establishes a new insurance supervision agency.  What is the 
status of the establishment of such agency?  
Answer:  
According to the Law on Insurance (RM OG No. 78/06) , members of the Agency Council have been 
appointed by the Parliament on 3 July 2007.   The Agency Council has adopted necessary 
documentation of the Agency (Statute, Financia l Plan and Programme) and placed them in the  WT/ACC/CGR/27 
 Page 23 
 
 
 appropriate parliamentary approval pr ocedure.  Subsequent to approva l, the Agency will be formally 
established and will be able to opera te in accordance with the law.  
Question 56 
Paragraph 211 of the Factual Summary also st ates that foreign insurance companies are not 
subject to any restrictions.  Please clarify whether foreign insurance companies can place 
reinsurance business abroad.  
Answer:  
According to paragraph 4 of Article  6 of the Law on Insurance, all insurance companies established in 
accordance with this Law may be reinsured with  domestic and foreign reinsurance company. 
 
__________