RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CPV/23 
11 October 2005 
 (05-4615) 
Working Party on the 
Accession of Cape Verde Original:   English 
 
 
 
ACCESSION OF CAPE VERDE 
 
Additional Questions and Replies  
 
 
 The following submission, dated 30 September 2005, is being circulated at the request of the 
Delegation of the Republic of Cape Verde.   
 
_______________ 
 
  Unless otherwise indicated, all questions a nd comments concern either the Questions and 
Replies in WT/ACC/CPV/19 or 20 (identifie d by question number) or the text of 
WT/ACC/SPEC/CPV/4, Elements of a Draft Working Pa rty Report (identified by paragraph number).  
  
_______________ 
 WT/ACC/CPV/23 
Page ii  
 
 TABLE OF CONTENTS 
 
 
II. 
 ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......4  
- State Ownership and Privatization .........................................................................................6  
- Pricing Policies ............................................................................................................... ...........8  
- Competition Policy............................................................................................................. .....11  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES .........................................11  
- Powers of executive, legislative and judicial branches of government...............................11  
- Authority of Sub-Central Governments ...............................................................................13  
IV.  POLICIES AFFECTING TRADE IN GOODS ...................................................................13  
- Trading Rights ................................................................................................................. .......13  
A. IMPORT REGULATIONS....................................................................................................20  
- Ordinary cust oms duties ........................................................................................................ 20 
- Other duties and charges....................................................................................................... .22 
- Tariff rate quotas, tariff exemptions.....................................................................................25  
- Fees and charges for services rendered.................................................................................26  
- Application of internal taxes to imports ...............................................................................29  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............32  
- Customs valuation.............................................................................................................. .....37  
- Rules of origin ................................................................................................................ .........37  
- Other customs formalities ...................................................................................................... 40 
- Preshipment inspection ......................................................................................................... .40 
- Anti-dumping, countervailing duti es, and safeguard regimes............................................40  
B. EXPORT REGULATION......................................................................................................41  
- Export subsidies ............................................................................................................... .......41  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................43  
- Industrial Policy, including subsidies....................................................................................43  
- Technical barriers to trade, st andards, and certification....................................................45  
- Sanitary and phytosanitary measures...................................................................................46  
- Trade-related investment measures ......................................................................................49  
- State Trading Entities......................................................................................................... ....49   WT/ACC/CPV/23 
 Page iii 
 
 
 - Free zones, special economic areas........................................................................................51  
- Government procurement......................................................................................................53  
- Transit........................................................................................................................ ..............54  
- Agricultural Policies .......................................................................................................... .....55  
(a) Imports........................................................................................................................ .............55  
(c) Internal policies.............................................................................................................. .........59  
- Textiles Regime ................................................................................................................ .......59  
V.  TRADE-RELATED INT ELLECTUAL PROPERTY RIGHTS REGIME ......................59  
- GENERAL........................................................................................................................ .......59  
- Industrial Property Protection ..............................................................................................59  
- Participation in international intellectual property agreements ........................................60  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ...........................................................................60
 
- Copyright and related rights..................................................................................................6 0 
- Trademarks, including  service marks...................................................................................61  
- Geographical indications, including appellations of origin.................................................61  
- Requirements on undisclosed information, including trade secrets and test data............62  
- ENFORCEMENT...................................................................................................................6 3 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................65  
VII. TRANSPARENCY .................................................................................................................69   WT/ACC/CPV/23 
 Page 1 
 
 
 II.  ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 We note the bracketed statemen t in paragraph 13 that the VAT, Special Tax on Consumption 
(STC), and the Environmental taxes are the "only"  domestic taxes applied to imports. We seek 
confirmation and a comprehensive list of such taxes. 
Answer:
 
The Government of Cape Verde confirms that th e VAT, Special Tax on Consumption (STC) and the 
Environmental Tax are the "only" domestic taxes applied to imports. 
As these are the "only" domestic taxes applied to imports, a comprehensive list of such taxes should 
not be necessary. 
- Foreign Exchange and Payments 
Question 2 As regards paragraph 16, could Cape Verde ex plain the reasons for requiring Bank of Cape 
Verde (BCV) authorization for 1) obtainin g currency to import merchandise above 
CVE 5,000,000; 2) invisible operations falling under "private unilateral transfers" for amounts 
exceeding CVE 1,000,000 and for transfers exce eding CVE 5,000,000 as payment for goods and 
services.  
Answer:
 
This question is clarified with the new writing of  paragraph 16 of the Working Party Report, given 
below: 
16. With respect to foreign exchange c ontrols, in accordance with Decree Law 
Nos. 25/98 and 26/98 of 29 June 1998, and the Bank of Cape Verde's Notice No. 4/98 
of 21 December 1998: 
− The current invisible operations are to tally liberalized, with the exception of 
the operations connected with travelling should the amount involved exceed CVE 1,000,000; 
− There is no restriction in opening up accounts in foreign currency, in the 
banks, nor in obtaining foreign currency for the importation of goods; 
− The operations of capitals, with the exce ption of those executed in the Stock 
Market or through duly authorized Broke rs, are subject to prior authorization 
from the BCV, upon request accompanied by the documents that prove the reality and the nature of the operations to  be executed.  This authorization is 
given automatically (it is never rejected) as long as the necessary requisites 
established by law are met;  
− In situations of doubt regarding the legitimacy of the stakeholders in a 
specific operation, the law foresees subjection to a prior verification by the WT/ACC/CPV/23 
Page 2  
 
 BCV.  Thus, the execution of the following operations may be subject to 
prior verification by the BCV:  
1.  Transfers pertaining to current invisible operations in amounts 
greater than CVE 1,000,000, included under the heading "private unilateral transfers"; 
2.  Transfers of amounts greater than CVE 5,000,000 pertaining to the 
liquidation of services rendered or to revenues, except for, in this case, the interests pertaining to granting previously authorized loans or credits; 
3.  Transfers pertaining to payment or advance reception of current 
transactions, when the advance rece ption deadline is greater than 
three months, their amount exceeds CVE 1,000,000 and represents more than 35 per cent of the contractual value. 
− Cape Verde confirmed that there are no foreign exchange restrictions, such as 
mandatory surrender requirements, prior import deposits, or a tax in the acquisition of currency exchange.  
Question 3 We welcome the news in paragraph 15 that Cape Verde's bilateral agreement on credits and 
payment with Cuba has lapsed.  When does Cape Verde expect to adopt the obligations of IMF 
Article VIII sections 2(a), 3, and 4 on current account transactions?  
Answer:
 
According to notification made by note No. 520/GMFP/04 of 6 August, and taking into account 
Section I of Article XIV of the Agreement with th e IMF, the Government of Cape Verde has already 
informed the IMF of its decision to accept the obligat ions of Article VIII, Sec tions 2(a), 3 and 4.   
Question 4 
Paragraph 16: We seek clarification in the text of the statement that "transfers and payments 
for current account transactions could be done freely" in light of the statement later in the 
paragraph that Bank of Cape Verde (BCV) "authorization" was required to obtain foreign 
exchange for importation of merchandise above a certain value, and that prior "verification" was necessary for payments for services and private unilateral transfers, and for current 
account transactions prepaid by more than three months.  
Is the authorization automatic, or are there crit eria that must be met?  Is the state of the 
balance of payments a factor?  
Answer:
 
This question is clarified with the new writing give n to Paragraph 16 of the Working Party Report. 
Note:  Paragraphs 15, 16 and 17 of the Draft Working Party Report were revised.  The revised text is 
as follows:  
15.  The representative of Cape Verde said th at his Government had notified the IMF on 
6 August 2004 of its decision to accept the obligatio ns of Article VIII, Sections 2 (a), 3 and 4. 
The process is underway, following the normal proceedings.  WT/ACC/CPV/23 
 Page 3 
 
 
 16.  With respect to foreign exchange contro ls, in accordance with Decree Laws No. 25/98 and 
26/98 of 29 June 1998, and the Bank of Cape  Verde's Notice No. 4/98 of 21 December 1998:  
− The current invisible operations are totally liberalized, with the exception of the 
operations connected with travellin g should the amount involved exceed 
CVE 1,000,000; 
− There is no restriction in opening up accounts in foreign currency, in the banks, nor in 
obtaining foreign currency for the importation of goods; 
− The operations of capitals, with the excepti on of those executed in the Stock Market 
or through duly authorized Brokers, are subject to prior authorization from the BCV, upon request accompanied by the documents that  prove the reality and the nature of 
the operations to be executed.  This author ization is given automatically (it is never 
rejected) as long as the necessary requisites established by law are met;  
− In situations of doubt regarding the leg itimacy of the stakeholders in a specific 
operation, the law foresees subjection to a prior verification by the BCV.  Thus, the 
execution of the following operations may be  subject to prior verification by the 
BCV:  
1. Transfers pertaining to current invisible operations in amounts greater than 
CVE 1,000,000, included under the heading "private unilateral transfers"; 
2. Transfers of amounts greater than CVE 5,000,000 pertaining to the 
liquidation of services rendered or to revenues, except for, in this case, the 
interests pertaining to granting previously authorized loans or credits; 
3. Transfers pertaining to payment or advance reception of current transactions, 
when the advance reception deadline is  greater than three months, their 
amount exceeds CVE 1,000,000 and represents more than 35 per cent of the 
contractual value. 
− Cape Verde confirmed that there are no foreign exchange restrictions, such as 
mandatory surrender requirements, prior impor t deposits, or a tax in the acquisition of 
currency 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)  transfer of foreign investment capital as 
long as the foreign investor was registered as su ch with the BCV and was authorized by the 
Minister of Finance and Planning to ca rry out foreign investment operations.  
Question 5 
Paragraph 16:  We seek clarification in the text of the statement that "transfers and payments 
for current account transactions could be done freely" in light of the statement later in the 
paragraph that Bank of Cape Verde (BCV) "authorization" was required to obtain foreign 
exchange for importation of merchandise above a certain value, and that prior "verification" 
was necessary for payments for services and private unilateral transfers, and for current 
account transactions prepaid by more than three months.  
Under what circumstances would BCV deny its auth orization or verification?  How often does 
that happen?  WT/ACC/CPV/23 
Page 4  
 
 Answer:
 
This question is clarified with the new writing give n to Paragraph 16 of the Working Party Report.  
See text in answer to Question No. 4. 
Question 6 
Paragraph 17 indicated that the BCV could require the transfer of capital arising from the sale, 
liquidation, or dissolution of an enterprise to be carried out in quarterly installments if 
transferring the sum in full would cause a seri ous disturbance to Cape Verde's balance of 
payments.   How is this measure an investment incentive?  
Answer:  
It is a safeguard measure.  Only in very exceptiona l cases of great concern in the balance of payments, 
is it possible for this happen. 
This question is clarified with the new writing give n to Paragraph 16 of the Working Party Report.  
See text in answer to Question No. 4. 
Question 7 
Paragraph 17 indicated that the BCV could require the transfer of capital arising from the sale, 
liquidation, or dissolution of an enterprise to be carried out in quarterly installments if 
transferring the sum in full would cause a seri ous disturbance to Cape Verde's balance of 
payments.  
How would the BCV make this determination? Would the BCV seek IMF concurrence on its 
evaluation before acting?  
Answer:  
This question is clarified with the answer to the previous question and the re vision of paragraphs 15, 
16 and 17 of the Draft Working Party Report.  See revi sed text of paragraphs 15, 16 and 17 in answer 
to Question No. 4. 
- Investment Regime 
Question 8 
Specific comments on the Regulamentary Decree No. 1/94 of 3 January concerning Foreign 
Investment authorisation processes.  Articles 3 and 4 are not clear as regards the deadline for 
receiving the authorisation. Please clarify th e deadline for receiving the authorisation. 
Answer:  
Cape Verde states that Article 3 of the above-cite d Regulamentary Decree is clear as to the maximum 
of a 30-day deadline.  It, no doubt, is the exception that causes the confusion. 
Paragraph 3 of Article 4 only applies to investme nts in Franc Enterprises.  When information is 
missing or incomplete the Investment and Fran c Enterprise Evaluation Committee will request the 
prerequisite date or information.  In such cases, the deadline specified in Ar ticle 3 is suspended until  WT/ACC/CPV/23 
 Page 5 
 
 
 the foreign investor or its representative provi des the information requested.  When the foreign 
investor or its representative provides the in formation, the deadline period is resumed. 
Question 9 
Specific comments on the Regulamentary Decree No. 1/94 of 3 January concerning Foreign 
Investment authorisation processes.   
Article 4.3  
The criteria for receiving authorisation and in formation needed for this purpose should 
be clear and exhaustive. In the case of the present Decree, all necessary information 
should be contained in the required application forms which are set out in Annexes 1 and 2 of the Decree. 
We note that Article 4.3 states that "Whenever necessary, The Investment and Franc 
Enterprises Evaluation Committee should solicit complementary elements of information from the foreign investor. Acco rding to Article 4.4, in such cases the 
deadline of a maximum 30 days is suspended and resumes after the foreign investor has provided the requested information". 
The provisions of Article 4.3 and 4.4 are arbi trary and we urge their deletion from the 
Decree. The information contained in the applic ation forms should be sufficient and it is 
for the Exports and Investment Promotion Centre, who receives the application, to 
judge whether all the information requested in the application form is submitted. 
Answer:
 
Cape Verde thanks the Member for its views and comments.  Cape Verde will take the suggestion 
under consideration. 
Question 10 
Paragraph 19: Could Cape Verde give a list of se ctors which are not open to investment because 
they are considered as a threat to national secu rity, public morals, the environment or public 
health, or in violation of domestic laws and regulations?  
Answer:  
Paragraph 19 states that all sectors are open unless the activity is considered a threat to the above 
mentioned sectors. 
Cape Verde hereafter provides examples (not an e xhaustive list) of activities in sectors that pose a 
threat. 
National Security:  Production or importation of handguns, military w eapons and hardware, 
munitions and similar materials. 
Public Morals:  Production or importation of pornographic materials, establishment of houses 
of ill repute, establishment of illegal gambling houses and similar activities. 
Environment:   Industries that would degrade the environment (such as processing turtle 
products and/or other endangered species). WT/ACC/CPV/23 
Page 6  
 
 Public Health:  Establishment of industries th at would produce and/or distribute illegal drugs 
and food dangerous to public health. 
Question 11 
Paragraph 24: It appears that Cape Verde oper ates a system of investment incentives that 
constitutes prohibited export subsidies (Cape Verde states that incentives are denied for 
investments that exclusively or mainly target domestic markets). Could Cape Verde provide a 
comprehensive list of all its investment promotio n schemes indicating their legal basis, eligibility 
criteria and budget.   
Answer:
 
Cape Verde is pleased to inform the Work ing Party of the following information: 
1. With regard to foreign investment, Artic le 2 of Law No. 89/IV/93 of 13 December 1993, 
provides the eligibility criteria; 
2. With regard to the Industrial Status (I ndustrial Investment), Article 28 of Decree Law 
No. 108/89 of 30 December 1989, provides the condition of access to the incentives of the 
Industrial Status; 
3. With regard to the Franc Enterprises, Artic le 2 of Law No. 99/IV/93 of 31 December 1993, 
provides the eligibility criteria; 
4. With regard to Incentives applicable to Ex portation or Re-exportation, Article 4 of Law 
No. 92/IV/93 of 15 December 1993, establishes the condition of access; 
5. With regard to Tourism Utility: 
(a) Article 3 of Law No. 55/VI/2004 of 10 January 2004, establishes the assumptions for 
attribution; 
(b) Article 5 of Law No. 55/VI/2004 of 10 January 2004, describes the criteria for 
evaluating the requests. 
6. However the 2006 Activity Plan for Cape Verd e Investment (the Agency responsible for 
Investments in Cape Verde) foresees a revision of the Foreign Investment Legislation.  
Cape Verde will notify the WTO Secretariat a ccordingly when the revised legislation has 
been approved.  
The Legislation cited above has been submitte d to the WTO Secretariat along the Accession 
Process. 
- State Ownership and Privatization  
Question 12 
We would like to applaud Cape Verde's privatization program which has set a standard that 
many could emulate.  The reduction of its state sector has undoubtedly been a key factor in Cape Verde's economic growth over the past few years.   WT/ACC/CPV/23 
 Page 7 
 
 
 Can Cape Verde confirm that there are no other state owned enterprises other than those listed 
in this section of WT/ACC/SPEC/CPV/4?  
Answer:  
The Government of Cape Verde confirms that th ere are no other state owned enterprises other than 
those listed in the Paragraph 28,  Table 2 of WT/ACC/SPEC/CPV/4. 
Question 13 Article XVII of the GATT requires State-Owned En terprises (SOEs) to operate on commercial 
principles. How would competitors of SOEs determine if they are in fact operating on commercial principles? What transparency re quirements does Cape Verde impose on SOEs? 
What accounting standards are applied to SOEs? Are SOEs required to publish annual 
reports? Are they required to submit to an inde pendent external audit? If so, does the law 
require the publication of the independent audito rs report? How do SOEs pay profits to the 
State?  
Answer:
 
All of the remaining state-owned enterprises have to  abide by the same corporate law and principles 
as private companies.  They all have Boards of Directors, Fiscal Councils (Internal Auditors), and 
follow the National Accounting Standards, as do private companies. 
The Boards of Directors of the four state-owned companies must prepare annual reports and audited 
statements to submit to shareholders, internal aud itors and tax authorities.  CV tax authorities require 
audited statements. 
Concerning transparency, annual reports are always ma de available to sharehol ders and tax authorities 
and in some/many cases, also available to the public.  Annual Reports are required to be published in 
the Official Bulletin or in the ne wspapers with wider circulation in the country or in both at the 
expenses of the company.   
It is mandatory to published I ndependent Auditors Report anne xed to Annual Reports, without 
prejudice to the economical and financial oversight by the governmental departments responsible for 
Finance who may also resort to the ser vices of credible i ndependent auditors. 
As to paying profits to the State, once accounts ar e presented to the share holders for approval, a vote 
is taken on returned earnings and dividends.  Ther eafter, dividends are distributed in proportion to 
shareholders equity (including the State). 
Question 14 
We take note of the commitments in paragraph 30.  
Answer:  
No answer needed. 
Question 15 
We would like to propose the following a dditional commitment for this section:  WT/ACC/CPV/23 
Page 8  
 
 "The representative of Cape Verde confirmed that it would ensure that all state-owned, 
state-invested, and state trading enterpri ses would make purchases and sales based 
solely on commercial considerations, e.g., price, quality, marketability and availability, 
and that the enterprises of other WTO Members would have an adequate opportunity to compete for sales to and purchases from thes e enterprises on non-discriminatory terms 
and conditions. In addition, the Governme nt of Cape Verde would not influence, 
directly or indirectly, commercial decisions on the part of state-owned, state-invested, or state trading enterprises, including on the quantity, value or country of origin of any goods purchased or sold, except in a manner consistent with the WTO Agreement. The 
Working Party took note of these commitments."  
Answer:
 
The Government of Cape Verde adheres to the stat ement by our representation and agrees with the 
commitment language suggested. 
- Pricing Policies 
Question 16 
We would be grateful if Cape Verde could clarify if price measures of the following kinds are 
applied to any product: 
− Minimum internal prices; 
− Minimum import prices; 
− Imposts on an imported good that are subjec t to variations that would tend to insulate 
the domestic price from changes in the external price. 
Answer:  
− Domestic minimum prices are not applied in Cape Verde.  Regulamentary Decree 
No. 2/2002, of 12 August, which fixes The Refe rence Price and the Minimum Taxable Price, 
for the purpose of Customs Clearance of 1 Kg of imported chicken meat of the headings 
02.07.11.00.00, 02.07.12.00.00, 02.07.13.00.00, 02.07.14.00.00, of the import Table in effect, at CVE 235 and CVE 145, respectively, expired since 12 August 2004 and was not continued. 
− Minimum prices are not applied on imports. 
− There are none. 
Question 17 
In addition to the commitment sought in qu estion 13 of WT/ACC/CPV/20, we would ask that 
commitment language framed around the followi ng text also be included in the report: 
The representative of Cape Verde confirmed moreover that pricing policy in Cape 
Verde would be applied in compliance with th e provisions of Article III.4 and XI.1 of 
GATT 1994 and Article 4 of the Agriculture Agreement. 
Answer:
 
Article III.4 and XI.1 of the GATT 94, refer resp ectively, to national treatment and to quantitative 
restrictions on imports other than the customs duti es (contingencies, import and export licenses, etc).    WT/ACC/CPV/23 
 Page 9 
 
 
 Article 4 of the Agreement on Agriculture refe rs to access to the market, specifically to the 
establishment and reestablishment of non-tariff measures that had been converted into customs duties.  
Cape Verde agrees to the commitment language suggested by the Member. 
Question 18 
Paragraph 34 of WT/ACC/CPV/SPEC/4 notes that a ll legislation and regulations establishing or 
modifying price controls had always been published in the Official Bulletin before taking effect.  
Under relevant Cape Verde laws governing price co ntrols, what is the length of time between 
publication and entry into force of the new prices?  
Answer:  
In WT/ACC/CPV/15 (25 August 2004), Cape Verde c onfirmed that "no law, regulation, judicial 
decision, administrative rulings, or other measures of  general application pertaining to or affecting 
trade in goods, services, TRIPS, etc., would become e ffective or be enforced prior to such publication. 
Accordingly, the new prices become effective immedi ately or on the day of publication in the Official 
Bulletin. 
Question 19 
Paragraph 34 of WT/ACC/CPV/SPEC/4 notes that a ll legislation and regulations establishing or 
modifying price controls had always been published in the Official Bulletin before taking effect.  
Does Cape Verde currently allow interested parti es to comment on proposed changes in price 
controls? If not, does Cape Verde intend to pr ovide opportunities for public comment on price 
control changes?  
Answer:  
Yes.  The views of the Chamber of Commerce, the ministries involved, the municipalities and the 
interested consumer associations are taken into consideration.  
Question 20 
Referring to paragraph 35, we are not aware that  there are "international prices" for some of 
the products listed, e.g., bread and bakery pr oducts, or possibly wheat flour and butane gas. 
What methods are used to fix these prices?  
Answer:  
In WT/ACC/CPV/15 (page 1), in the response to Ques tion 1, Table 1 specifies the methods used to fix 
the prices. 
Maximum and fixed prices are established depending  on the structure of production cost, fluctuation 
of prices in the international market place and the domestic market. 
Please note that the phrase "international prices was previously clarified by Cape Verde to mean 
"prices in the international market". The paragra ph 34 of WT/ACC/SPEC/CPV/4 already reflects this 
change.  WT/ACC/CPV/23 
Page 10  
 
 Question 21 
Is it true that price controls for Rice, Sugar (Granular), Com, Wheat Flour, Wheat Bran, Bread 
and bakery products, Gas oil and Gasoline are not applied to imports at time of importation, 
but rather at the same point of sale as for dom estic production? Please adjust the table and/or 
text to clarify this point.  
Answer:
 
Yes. Price controls for imports are administered at the same point of sale as for domestic production. The paragraph 35 of WT/ACC/SPEC/CPV/4 should read as follows: 
"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, gasolin e, gas oil and kerosene were applied at the 
point of sale as for domestic production. He confirmed that products affected by price 
controls were no longer subject to State trading." 
Question 22 
Referring to a footnote to Table 3 on page 57 of WT/ACC/SPEC/CPV/4, importers of corn, rice, 
sugar, and wheat flour which are subject to maximum prices must distribute 30 per cent of their importation in other islands than Santiago and St. Vincent.  
How is this requirement consistent with Article III of the GATT?  
Answer:
 
The 30 per cent figure has been eliminated in the re vision of the external trade legislation, Decree 
Law No. 50/2005 (a copy of which was forwarded to the WTO Secretariat). 
Thus, the revised law on external trade will be  consistent with Article III of the GATT. 
Question 23 
Referring to a footnote to Table 3 on page 57,  importers of corn, rice, sugar, and wheat flour 
which are subject to maximum prices must distribute 30 per cent of their importation in other 
islands than Santiago and St. Vincent.  
Are domestic producers of these products re quired to meet this same requirement?  
Answer:  
No.   See answer to Question No. 22 and Decree Law No. 50/2005. 
Question 24 
We note the duel commitment language indicated in paragraph 36.  We can support the first set 
of bracketed text.   WT/ACC/CPV/23 
 Page 11 
 
 
 Answer:  
Cape Verde agrees with this comment and makes a commitment of using the language of the first set 
of brackets in paragraph 36. 
- Competition Policy 
Question 25 
Paragraph 37:  Please precisely describe Cape  Verde's current competition policies and the 
institutions that enforce those policies. Please also describe any planned or developing changes 
to existing competition policies or institutions  plans to develop Cape Verde. Please advise 
whether intended changes require legislation.  
Answer:  
The General Directorate of Commerce, within the Ministry of Economy is responsible for planning 
and enforcing competition policies.  Decree Law No. 50/2005 replaces Decree Law No. 53/2003 and 
outlines the competition policies of Cape Verde.   
A copy of Decree Law No. 50/2005 has been provided to the WTO Secretariat. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES  
- Powers of executive, legislative and judicial branches of government Question 26 We appreciate the explanation of Cape Verde' s ratification procedures in paragraph 41 of 
WT/ACC/SPEC/CVP/4. We would appreciate an explanation for the brackets remaining 
around the word automatically.  
Answer:
 
Cape Verde thanks the Members for its comments.   The bracketed word "[automatically]" was a 
drafting oversight and adds nothing to the con cept.  In accordance with Articles 12-14 of the 
Constitution, the provision of the WTO would supersede the domestic law. 
Cape Verde agrees to remove the word  "automatically" from paragraph 41. 
Question 27 For clarity, we would recommend restructuring this section by placing paragraphs 47-51 after 
paragraph 41. 
Answer:
 
Cape Verde agrees with the recommendation to restructuring this section. 
Question 28 
Paragraph 43 indicates that an aggrieved part y could lodge a written appeal against an 
administrative decision.  WT/ACC/CPV/23 
Page 12  
 
 Can that written appeal be filed with the decision-maker's superior or other responsible official 
within the executive branch of government, or must it be made to the courts?  
Answer:
 
Yes, a written appeal can be lodged against an admi nistrative decision with an official within the 
executive branch of the Government. 
After exhausting administrative remedies, then th e aggrieved party could appeal to the courts. 
An aggrieved party could lodge an appeal directly to  the courts, at their option.  Generally the appeal 
is to the administrative body and if the aggrieved pa rty is not satisfied with the decisions then an 
appeal to the courts would be the next step. 
Question 29 
Paragraph 43 indicates that the Administrative Courts are not yet operational.  When does 
Cape Verde intend to open them?  
Answer:  
The question of Administrative Courts as an autonomous  court is still under consid eration at this time.  
At this time, no date has been established for them to open, as such. 
However, the Administrative Justice operates in pl enitude and it is attained via the Common Courts 
and the Supreme Court of Justice.  Along the years, the administration of Administration Justice always functioned through the Common Cour ts and the Supreme Court of Justice. 
Question 30 
Referring to Paragraph 44, we note that Cape  Verde is not yet a party to the 1958 U.N. 
Convention on the Recognition and Enforcement of Foreign Arbitral Awards and paragraph 45 
notes that Cape Verde is not yet a party to th e Convention on the Settlement of Investment 
Disputes.  
Does Cape Verde intend to become a part y to these conventions? If so, when?  
Answer:
 
The question of Cape Verde becoming a party to the 1958 UN Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards (paragraph 44) and a party to the Convention on Settlement 
of Investment Disputes is currently under consid eration before the Ministry of Justice and the 
Ministry of Foreign Affairs. 
Question 31 
Paragraph 46:  We are confused by this draft commitment:  It states in this commitment that Cape Verde "would establish" appropriate independent 
tribunals for appeals of administrative decisi ons regarding trade in goods and services, and 
TRIPS. This would seem to conflict with the de scription in paragraph 43, and paragraphs 91 
and 92, where it states, "the right to appeal to an independent administrative tribunal was already in effect.  WT/ACC/CPV/23 
 Page 13 
 
 
 Please indicate whether or not Cape Verde already  has appeals to the courts or to independent 
tribunals for all the issues covered by the WTO, e. g., those dealing with trade in goods, trade in 
services, and TRIPS.  
Answer:  
Please refer to the answer to Question No. 29. 
The issues pertaining to the WTO could be appeal ed to the Common Courts, in their attribution as 
Administrative Courts and could be appealed upward to the Supreme Court of Justice if the appellant 
is not satisfied with the decision of the Common Courts. 
Question 32 
Concerning the WTO Unit for trade policy developm ent and execution referred to in paragraph 
48, where is this Unit located in the governing st ructure, and to what Ministry does it belong 
and report?  
Answer:  
The WTO Unit for trade policy development referred to  in paragraph 48 is located in the Ministry of 
Economy, Growth and Competitiveness, and reports directly to the Minister. 
- Authority of Sub-Central Governments Question 33 We take note of the commitment in paragraph 51 
Answer:
 
No answer needed. 
IV.  POLICIES AFFECTING TRADE IN GOODS  
- Trading Rights  
Question 34 Paragraph 52:  Could Cape Verde explain the current state of revision of the legislation as 
regards registration of businesses and commercial  operators? When would the draft laws be 
available? 
Answer:
 
The revision of the law regarding internal commerce ju ridical regime has been completed and is in the 
final stages of approval by the Government. 
A copy of the revised law was forwarded to the WTO Secretariat (please see document 
WT/ACC/CPV/19/Add.1). WT/ACC/CPV/23 
Page 14  
 
 Question 35 
Paragraph 57:  Could Cape Verde explain why th e registration fee for importers is double of 
that than the fee for exporters.  Looking at the criteria listed (i) to (iv), there seems to be no 
justification for this different treatment.  Cape  Verde would be urged to bring its registration 
fees in line with Article VIII GATT to reflect the cost of services rendered.  
Could Cape Verde also explain in more detail the me thod used for fixing the fees on the basis of 
the cost of service provided, indicating the actual cost of services provided. 
Answer:
 
Article 22 of the draft Juridical Regime for intern al commerce provides that an Ordinance should be 
prepared (and in fact, is completed) and the fees are harmonized. 
The fees are fixed in the Ordinance with inputs from members of Government responsible for the 
sectors of Commerce and Finance. 
Question 36 
Paragraph 52:  We understand that Cape Verde is in the process of revising its business 
registration law.  
Could Cape Verde please provide a status report on the new draft law? When will it be 
provided to the Secretariat for comm ent by Working Party Members?  
Answer:  
Cape Verde would like to make the following clarifications: - Licensing for commercial activity is performed by the Chamber of Commerce; and 
- Business registration is performed by th e Conservatory of Commercial Registry. 
As this question appears to concern Trading Right s, Cape Verde will assume the question concerns 
"licensing for commercial activity" and not business registration. 
The draft law on revising licensing for commercia l activities (draft-law will replace Decree Law 
No. 50/2003) has been circulated to the various mi nistries in Cape Verde and is awaiting comments. 
The draft revision of the licensing for commercia l activities law has been forwarded to the WTO 
Secretariat. 
Question 37 
Paragraph 52: We understand that Cape Verde is in the process of revising its business 
registration law.  
We are very concerned about the WTO consistenc y of the current law and we would appreciate 
a chance to provide substantive comments on the new draft law to ensure that it is WTO 
compliant prior to enactment.   WT/ACC/CPV/23 
 Page 15 
 
 
 Answer:  
See answer to Question No. 36. Please note, however, the distinction between licensing for commercial activities and business 
registration. 
Question 38 
Paragraph 53: We understand that "industrial enterprises" are subject to a separate 
registration process based on your response to Qu estion 40 in WT/ACC/CPV/20.  What are the 
requirements to be designated as an "industria l enterprise" in Cape Verde and how do they 
differ from those for traders or distributors?  
Answer:
 
An industrial enterprise engages in transforma tion activities, such as assembly, manufacturing, 
building, etc.  An industrial enterprise may im port only raw materials, semi-finished material, 
equipment, and the like, to meet their own needs.  An industrial enterprise may not engage in general 
imports and distribution of the im ported products, in Cape Verde. 
Traders or distributors differ from industrial enterprises in that they may freely engage in all import, 
export and distribution activities. 
Question 39 
Paragraph 54: The first sentence in paragraph 54 seems to imply that a foreign enterprise must 
establish a branch or other form of commercial p resence in Cape Verde in order to import or to 
export. This should not be necessary, and an unnecessary barrier to trade inconsistent with 
GATT Article XI. Foreign individuals and enterprises should be able to be recognized as 
"importers or exporters of record," maintain ing legal ownership and control of the goods and 
paying all duties and taxes prior to transferring ownership to a local distributor without having 
to establish a physical presence in Cape Verde.  
Does the new draft business registration law provid e for this facility? Is Cape Verde prepared to 
establish this right to import and to export sep arate from the right to distribute goods in Cape 
Verde?  
Answer:  
Please note distinction between licensing for co mmercial activities and new business registration. 
Yes, the new licensing for commercial activities law provides that both domestic and foreign 
enterprises must establish a commercial presence in Cape  Verde and register with the Conservatory of 
Commercial registry. 
The new draft licensing law already separates the right to import and export from the right to 
distribute goods in Cape Verde. 
Question 40 
Paragraph 55: Under the business registratio n system, Cape Verde's two Chambers of 
Commerce act as the government's agent in registering new companies.  WT/ACC/CPV/23 
Page 16  
 
 What are the "conditions" in Decree Law No . 50/2003 under which a Chamber of Commerce 
may reject an application for commercial registrat ion?  Does a Chamber administer any sort of 
economic needs test to firms wishing to establish in Cape Verde?  
Answer:
 
Cape Verde would like to make the following clarifications: 
- Licensing for commercial activity is performed by the Chamber of Commerce; and 
- Business registration is performed by th e Conservatory of Commercial Registry. 
As this question appears to concern Trading Right s, Cape Verde will assume the question concerns 
"licensing for commercial activity" and not business registration. 
The revision of Decree Law No. 50/2003 does not specify conditions under which a Chamber may 
reject an application.  However, the revision of  Decree Law No. 50/2003 sets forth positive standards 
or requirements that are to be included in an application.  Should the requirements or conditions not be met, then an application would be returned to the applicant for inclusion of the missing data. 
Neither the Chamber nor the Conservatory administ er any economic needs test to firms needing to 
establish in Cape Verde. 
Question 41 Paragraph 55:  Under the business registration system, Cape Verde's two Chambers of 
Commerce act as the government's agent in registering new companies.  
Does Cape Verde's new draft business registration la w envision returning the role of registering 
new businesses to the government?  
Answer:
 
Cape Verde would like to make the following clarifications: 
- Licensing for commercial activity is performed by the Chamber of Commerce; and 
- Business registration is performed by th e Conservatory of Commercial Registry. 
As this question appears to concern Trading Right s, Cape Verde will assume the question concerns 
"licensing for commercial activity" and not business registration. 
The draft licensing for commercial activities business registration law does not envisage returning the 
role of authorization for the exercise of commercial activity to the government. 
Question 42 
Cape Verde also indicated in paragraph 55 stat es that a company must specify by product (HS 
code) what goods will be imported and exported. However, in the respon se to Question 50 of 
WT/ACC/CPV/20, Cape Verde states that registrat ion must be done by HS section, not by HS 
number.  These statements seem to be inconsistent.  Please provide more specific information 
clarifying what information a business entity need s to provide to be authorized to import and 
export goods.  Examples would be very helpful.   WT/ACC/CPV/23 
 Page 17 
 
 
 Answer:  
Although the statements appear to be  inconsistent, they are not.  What is needed in paragraph 55 is the 
addition of the word Section after "by HS Code".  Thus, paragraph 55 would read "The application 
would also specify by the products (by HS Code Section) that would be imported or exported". 
Question 43 
Paragraph 56:  Cape Verde states that business entities should assume that a registration has 
been granted if they have not received a response within 30 days. Is that thirty business or calendar days?  For transparency reasons an d to provide business entities with greater 
certainty, we strongly suggest that Cape Ve rde's draft law on business registration require 
issuance of some type of documentation affirming the authorization of the business registration. 
Answer:
 
The response time was 30 business days.  The r esponse time is reduced in the new licensing for 
commercial activities, to 7 days 
Cape Verde appreciates the suggestion of the view on the draft-law on licensing, and will take into 
consideration this suggestion when finishing the draft-law. 
Cape Verde would like to make the following clarifications: 
- Licensing for commercial activity is performed by the Chamber of Commerce; and 
- Business registration is performed by th e Conservatory of Commercial Registry. 
As this question appears to concern Trading Right s, Cape Verde will assume the question concerns 
"licensing for commercial activity" and not business registration. 
Question 44 
Paragraph 56 also indicated that a party wh ose business registration application faced undue 
delays or rejection could seek recourse to an administrative appeal. 
With what organization would such an appeal be filed?  
Answer:  
Cape Verde would like to make the following clarifications: 
- Licensing for commercial activity is performed by the Chamber of Commerce; and 
- Business registration is performed by th e Conservatory of Commercial Registry. 
As this question appears to concern Trading Right s, Cape Verde will assume the question concerns 
"licensing for commercial activity" and not business registration. 
An administrative appeal would be filed with the General Directorate of Commerce in the Ministry of 
Economy, Growth and Competitiveness.  Furt her appeal would be to the Minister. WT/ACC/CPV/23 
Page 18  
 
 Question 45 
Paragraph 56 also indicated that a party wh ose business registration application faced undue 
delays or rejection could seek recourse to an administrative appeal. 
Would a rejected applicant also have recourse to the courts?  
Answer:
 
Cape Verde would like to make the following clarifications: 
- Licensing for commercial activity is performed by the Chamber of Commerce; and 
- Business registration is performed by th e Conservatory of Commercial Registry. 
As this question appears to concern Trading Right s, Cape Verde will assume the question concerns 
"licensing for commercial activity" and not business registration. 
Yes, registered applicants for licence for commerc ial activity would have recourse to the courts. 
Question 46 
Paragraph 56 also indicated that a party wh ose business registration application faced undue 
delays or rejection could seek recourse to an administrative appeal. 
Could a rejected applicant file a case in civ il court against the Chamber of Commerce that 
rejected an application and seek fina ncial compensation for damages?  
Answer:  
Again, please note the distinction between licensing and business registration. Yes, a rejected applicant may file a case in civil court against the Chamber of Commerce within 30 
days from the day of rejection of the application,  Also, the rejected applicant may seek financial 
compensation for damages.  
Question 47 Paragraph 56:  Does Cape Verde have an update on when the on-line registration system will be 
functioning? In the meantime, how does Cape Verde intend to ensure that business entities can 
register with one municipality and still be auth orized to carry on bus iness throughout Cape 
Verde?  
Answer:
 
Again, please note the distinction between licensing and business registration. The Government of Cape Verde is developing an on-line system that will interface entities involved in 
the commercial area, such as Chamber of Co mmerce, Cabo Verde Investimentos (formerly 
PROMEX), Conservatory of Commercial Registry, Tourism, Energy, Commerce and Customs.  The 
on-line system is still being developed and is expect ed to be functioning in  the foreseeable future. 
In the meantime (currently), new business registra tions at one municipality are forwarded to the 
Conservatory of Commercial Registry, central office  in Praia.  All business registrations are compiled  WT/ACC/CPV/23 
 Page 19 
 
 
 at the Central Conservatory Office.  Thus, ne w business registrants are authorized to carry-on 
business throughout Cape Verde. 
Question 48 
Paragraph 57:  Cape Verde charges different fees for registration depending on whether a 
company is engaging in importation or exportation activities. Cape Verde has indicated it is in 
the process of revising the fee structure of its business registration law.  Will the fees be 
harmonized under the new law? Will the fee be  based on the "cost of services" rendered?  
Please explain the relationship between costs listed as "payments for meeting expenses" and 
"travel expenses" and the issuance of a business registration?  
Answer:  
Yes, the fee structure will be revised in the new registration of business and commercial activities 
law.  Also, the fees will reflect the cost of service rendered. 
Question 49 
Paragraph 59 stated that non-profit institutio ns exempt from registration requirements could 
offer imported consumption goods (i.e. all good s that are not raw materials, semi-finished 
products, or equipment) for resale in Cape Ve rde, pursuant to the approval of the General 
Customs Directorate. Some private firms were involved in the purchase of these exempted goods."  
Please advise whether duty is payable on goods imported by non-profit institutions.  
Answer:
 
Non-profit organizations pay duties on imported goods unless these goods they import are exempt by 
law. 
Question 50 
Paragraph 59 stated that non-profit institutio ns exempt from registration requirements could 
offer imported consumption goods (i.e. all good s that are not raw materials, semi-finished 
products, or equipment) for resale in Cape Ve rde, pursuant to the approval of the General 
Customs Directorate. Some private firms were involved in the purchase of these exempted 
goods."  
If not, is duty payable prior to a non-profit institution's resale of imported goods to private 
firms?  
Answer:  
The non-profit organizations are authorized to impor t goods for their exclusive use, destined for the 
purposes they are expected to attain  in the ambit of their activities. 
Should certain goods not serve or cease to serve the purposes for which they were imported, the 
referred institutions may alienate them to third parties, with prior authorization from the General 
Director of Customs.  Duties and other impositions due should be paid, based on the value agreed to 
by expert arbitration and in accordance with  the state of conservation of the goods. WT/ACC/CPV/23 
Page 20  
 
 Question 51 
We seek a commitment containing the following elements:  
Consistent with Articles III and XI of th e GATT, Cape Verde should grant from the 
date of accession, any natural or legal person,  domestic or foreign, the right to be the 
importer of record of any product allowed to be imported into Cape Verde, recognizing 
that this was separate from the right to distribute goods in a the local market.  
Answer:
 
Cape Verde agrees with the commitment language suggested.  
Question 52 
We seek a commitment containing the following elements:  
Cape Verde should confirm that from the date  of accession, full rights to import and to 
export would be granted in a non-discrimina tory and non-discretionary way, and that 
any requirements for registration or applicat ion for trading rights would be for customs 
and fiscal purposes only, would not require actu al investment in Cape Verde nor confer 
the right to distribute there, and would not constitute a barrier to trade.  
Answer:  
The Government of Cape Verde confirms its commi tment, from the date of accession, to grant full 
rights to import and to export in a non-discriminat ory and non-discretionary wa y.  The Government of 
Cape Verde further confirms its commitment not to  require actual investment in Cape Verde nor 
confer the right to distribute, not to constitute a ba rrier to trade, and not to require any requirements 
for registration or application for trading rights that are not for customs and fiscal purposes only.  
A. IMPORT REGULATIONS - Ordinary customs duties Question 53 Paragraph 64:  Appreciate submission of th e ECOWAS Roadmap. However, there are certain 
aspects of Cape Verde's customs structure that remain unclear.  
Cape Verde is a member of both ECOWAS and WAEMU. Both regional organizations 
maintain common external tariffs (CET). Accordin g to the roadmap, the implementation of a 
new CET was scheduled by completion by 2003. Do you have an update on progress? Will this 
new CET be ECOWAS wide? Will it be based on the current WAEMU or ECOWAS CET?  
Answer:
 
Cape Verde is a member of the ECOWAS but is not a member of WAEMU; 
There is only one CET, which is the one from WAEMU; 
There is, however, a study at a very advanced phase with a view to extend the WAEMU CET to the 
ECOWAS countries, non-members of WAEMU, such as the case of Cape Verde.    WT/ACC/CPV/23 
 Page 21 
 
 
 The implementation date for the WAEMU CET to  remaining ECOWAS countries, non-members of 
WAEMU is foreseen for the year 2007. 
Question 54 
Paragraph 64: Appreciate submission of the ECOWAS Roadmap. However, there are certain 
aspects of Cape Verde's customs structure that remain unclear.  
Please confirm when Cape Verd e intends to adopt HS2002 and whether it will establish its 
GATT Schedule in that nomenclature.  
Answer:  
Cape Verde confirms that it intends to adopt HS 200 2.  The date of adoption has not been determined 
at this time. 
Cape Verde confirms that it will establish its GATT schedule in that nomenclature (HS 2002) 
subsequent to its adoption. 
Question 55 
Paragraph 64: Appreciate submission of the ECOWAS Roadmap. However, there are certain 
aspects of Cape Verde's customs structure that remain unclear.  
When the new CET is finally implemented, will  member countries have exceptions or will the 
CET be harmonized across the entire HS harmonized tariff schedule?  
Answer:  
Several non-WAEMU countries have already commenced the CET phasing-in process (Ghana, 
Guinea, Sierra Leone and Nigeria).  The period from 2005 to 2007 is the transitional period, during 
which countries could be granted waivers on tariff line identified as coming under Type A and Type B 
exceptions. 
Cape Verde has solicited the list of Type A and Type B exceptions from ECOWAS and will forward 
the lists to the WTO Secretariat as soon they are made available. 
Question 56 
Paragraph 65: Cape Verde states in paragraph 65  that it has seven tariff bands and base duty 
rates between 0 and 50 per cent. The WAEMU commo n external tariff has four tariff bands of 
0, 5, 10, and 20 per cent.  As a member of WAEMU, please explain why Cape Verde has tariffs as high as 50 per cent, while the highest WAEMU CET rates are 20 per cent.  
Answer:
 
As was referred in the response to Question 53, Ca pe Verde is not a member of the WAEMU.  Cape 
Verde is a member of the ECOWAS; 
Not being a member of WAEMU, obviously it coul d not apply the WAEMU CET, which explains the 
difference of the tariff levels between Cape  Verde and any member-country of WAEMU. WT/ACC/CPV/23 
Page 22  
 
 - Other duties and charges 
Question 57 Regarding the reply to Question 74 of WT/ACC/CPV/20 and paragraph 69 of 
WT/ACC/SPEC/CPV/4, we would be very concerned  at any attempt to seek exemptions from 
the provisions of Article II.1(b) of GATT 1994 fo r particular kinds of measures such as the 
ECOWAS levy.  The provisions of Article II:1(b) of GATT 1994 were created to ensure the 
integrity of commitments on bound tariffs. 
We would recommend that Cape Verde either fund the ECOWAS levy out of general taxation 
revenue, or negotiate its elimination with its ECOWAS partners. 
Answer:
 
Cape Verde thanks the Member for its recommendation.  
Cape Verde informs Members that the ECOWAS levy is a Community matter and needs to be 
discussed at that level. 
Cape Verde further informs Members that it commit s itself to discuss the i ssue within ECOWAS at 
the earliest possible moment and notify the WTO Secretariat of the outcome, accordingly. 
Question 58 Regarding the reply to Question 74 of WT/ACC/CPV/20 and paragraph 69 of 
WT/ACC/SPEC/CPV/4, we would be very concerned  at any attempt to seek exemptions from 
the provisions of Article II.1(b) of GATT 1994 fo r particular kinds of measures such as the 
ECOWAS levy.  The provisions of Article II:1(b) of GATT 1994 were created to ensure the integrity of commitments on bound tariffs. 
We would propose that the following be incl uded in the report as a basis for commitment 
language: 
The representative of Cape Verde recalled th at Cape Verde had bound all tariffs in its 
Schedule of Concessions and Commitments for Goods.  He confirmed that Cape Verde 
would from the date of its accession to the WTO not apply other duties and charges 
within the meaning of Article II.1(b) of  GATT 1994 and would bind such other duties 
and charges at zero in relation to all pro ducts included in its Schedule of Concessions 
and Commitments for Goods.  He confirmed th at measures applied to imported goods of 
the kind described in paragraph […] above woul d be eliminated no later than the date 
of Cape Verde's accession and that after accession measures of this kind would not be reapplied or introduced.  The Working Party took note of these commitments. 
Answer:
 
Cape Verde thanks the Member for its comments and suggested language. 
Cape Verde informs Members that the ECOWAS levy is a Community matter and needs to be 
discussed at that level. 
Cape Verde further informs Members that it commit s itself to discuss the i ssue within ECOWAS at 
the earliest possible moment and notify the WTO Secretariat of the outcome, accordingly.  WT/ACC/CPV/23 
 Page 23 
 
 
 Question 59 
Paragraph 67 lists 18 separate taxes, charges,  surcharges, and fees as "other duties and 
charges." Most of these are actually covered in the subsequent sections on Fees and Charges for 
Services Rendered and Application of Internal T axes to Imports, where further information on 
these taxes, charges, and fees is provided.  
The information in this paragraph should be rev ised to ensure that only ODCs are described. 
Answer:  
Cape Verde thanks Members for their sugges tion and will ensure the correction is made. 
Question 60 
These three sections of the report, i.e., Oth er Duties and Charges, Fees and Chares for  
Services Rendered and Application of Internal  Taxes to Imports should be redrafted:  
− To indicate precisely which of the fees, charges, and taxes are still in place;  
− To fully describe the level and nature of application of the charges;  
− To distinguish more clearly among (a) fees a nd charges applied for services rendered on 
or in connection with importation or exportat ion; (b) taxes applied to both domestic and 
imported goods; and (c) other duties and charges that cannot be justified as falling under either of the other two categories; and  
− To indicate how Cape Verde plans to bring it into conformity with WTO provisions.  
Answer:
 
Cape Verde thanks Members for their sugges tion and will ensure the correction is made. 
Question 61 
We would also appreciate Cape Verde's explanat ion on whether the following charges are still 
applied, and if they are applied solely to  imports or also to domestic output:  
− Charges for Government Publications and Printed Matters purchased by users or 
importers; and  
− Consumption Tax on Local Production created in 1966.  
Answer:  
The sole customs publication is the "customs bulle tin" published annually by the General Directorate 
of Customs, containing diverse legislative provisions related to the customs services, dispatches from Government members, circulars, service orders, et c., sold at the Customs Treasuries.  The proceeds 
from the sales is destined to pay for the publication of new issues. 
Included in the category of forms for sale, those utilized by the users of the customs services in 
carrying out all the custom activities or activities rela ted to the customs, by the official dispatchers 
(brokers), cashier-dispatchers, agents of the tran sporters of goods, fuel companies, among others. 
Article 38 of Law No. 14/VI/2002, of 19 Septem ber 2002, already submitted to the Secretariat 
revoked the consumption tax on local production. WT/ACC/CPV/23 
Page 24  
 
 Question 62 
Paragraph 67 states that a surcharge (the "ISDC" ) of 35 per cent is applied on goods imported 
by informal importers.  
Is this charge still in place? If so, who or what  is an "informal" importer, and why is there a 
surcharge on goods imported by them?;  
Answer:
 
No. A surtax of 35 per cent ad valorem due in the importation without currency expenditure ("ISDC") by 
informal operators is no longer in effect.  The referred surtax was revoked by Law No. 121/V/2000, of 
5 June 2000. 
Question 63 Paragraph 69:  We seek commitment that Cape Verde will bind the ECOWAS Community 
Levy as an ODC in its GATT Schedule, at 0.5 per cent, along the following lines: 
69. Responding to requests that Cape Verde eliminate all ODCs and bind such 
duties and charges at zero in the Sche dule of Concessions and Commitments on 
Goods, the representative of Cape Verde said that the application of the 
ECOWAS levy had been negotiated by all the Member-States of ECOWAS and 
that Cape Verde was not in a position to eliminate this levy unilaterally.  He 
further stated that the ECOWAS levy was, in his view, the only charge currently applied by Cape Verde that fell within the meaning of other duties and charges" covered by Article II:1(b) of the GATT 1994. 
Answer:
 
Cape Verde agrees with the commitment language suggested. 
Question 64 
Paragraph 69:  We seek commitment that Cape Verde will bind the ECOWAS Community 
Levy as an ODC in its GATT Schedule, at 0.5 per cent, along the following lines: 
69bis The representative of Cape Verde confirmed that his government would not list 
duties and charges in its Schedule of Concessions and Commitments on Goods under Article II:1(b) of the GATT 1 994 except for the ECOWAS Community 
Levy of 0.5 per cent, thereby binding such charges at that rate. The Working Party took note of this commitment. 
Answer:
 
Please see answer to Question No. 63.  WT/ACC/CPV/23 
 Page 25 
 
 
 Question 65 
We suggest the following revision of coverage of these sections as follows to provide a more 
coherent framework for the description of the measures, their status, and how Cape Verde 
plans to bring them into conformity with WTO provisions.  
Other Duties and Charges:  
ECOWAS Community Levy of .5 per cent on all imports from non-ECOWAS countries.  
Answer:  
Cape Verde agrees with the commitment language suggested. 
- Tariff rate quotas, tariff exemptions  
Question 66 
We take note of Cape Verde's assertion that it has no intention of introducing tariff rate quotas 
in the future.  
Answer:  
The Government of Cape Verde confirms that it has no intention of introducing tariff rates quotas in 
its future commercial legislation. 
Question 67 Paragraph 72: Please identify which staple food  imports may qualify for tariff exemptions and 
describe how an importer may obtain that exemption.  
Answer:
 
The staple goods are corn, beans, rice, sugar, wheat, milk, cooking oils, among others.  These goods 
are exempt only when they constitute food assistance from friendly countries or from international 
organizations to the Government of Cape Verde. 
If they do not constitute food assistance, any of the same products, when imported, pay the duties and 
other impositions indicated in Customs Tables in effect, no matter who the importer is.  In other 
words, there will be no exemption. 
Question 68 
We seek a commitment that any future introducti on of tariff rate quotas would be applied and 
administered in conformity with WTO rules and regulations, including MFN and national treatment provisions.  
Answer:
 
The Government of Cape Verde confirms its commit ment that any future introduction of tariff rate 
quotas will be applied and administered in confor mity with WTO rules and regulations, including 
MFN and national treatment provisions.   WT/ACC/CPV/23 
Page 26  
 
 - Fees and charges for services rendered  
Question 69 As regards paragraph 75, could Cape Verde comm unicate the result of the envisaged review of 
the customs user fee of 1.04 per cent of the CIF-value in order to bring the fee in compliance with Article VIII of the GATT 1994.    
Answer:
 
According to the study done, a copy of which sha ll be forwarded to the WTO, the 1.04 per cent fee 
"ad valorem " applied to the imported goods for the paym ent of services rendered is in conformity 
with Article VIII of the GATT (see document WT/ACC/CPV/19/Add.1). 
Question 70 
We suggest the following revision of coverage of these sections as follows to provide a more 
coherent framework for the description of the measures, their status, and how Cape Verde 
plans to bring them into conformity with WTO provisions.  
Fees and Charges for Services Rendered  
applied on or in connection with importation or exportation  
− Tonnage Tax levied as a charge per ton on vessels;  
− Customs User Fee of 1.04 per cent of CIF im port value, mostly for general revenue, in 
new Customs Code;  
− Tax Penalties or fines and other judicial charges;  
− Late Payment Penalty or additional interest for delayed payment of duties and charges;  
− Interest paid by importers for credit on custom duties;  
− (Eliminated) Special Storage tax introduced in 1960 for the storage of fuels;  
− (Eliminated) Storage charge by the Custom s House for goods stored in its former 
warehouses;  
− (Eliminated) General Customs Fees or General Emolument Tax of 9 per cent introduced 
in 1942;  
− (Eliminated) Stamp Duty of CVE 100 (€ 0.91) applied to each import and export 
declaration, dating back to 1942. 
Answer:  
Cape Verde agrees with the commitment language suggested. 
Question 71 
Paragraph 67 lists the following charges applied to imports:  
(v) Interest paid by importers for credit on custom duties;  
(vi)  A Late Payment Penalty or additional interest for delayed payment of duties and 
charges; and  
(viii)  Tax Penalties or fines and other judicial charges. 
Are the charges noted in paragraphs 67(v) and 67( vi), i.e., the interest and penalties paid by 
importers for credit or delay on customs duties or charges, levied on imports if customs duties and charges are paid on time?   WT/ACC/CPV/23 
 Page 27 
 
 
 Answer:  
The granting of a credit on importation duties for any good implies the payment by the importer of 
interest at the rate of 10 per cent per year, paid prior   to granting the credit. 
If the credit granted is not paid up in the agreed to deadline, late charges shall be applied.  If payment 
of the credit is made within the established deadline, there shall be no late charges. 
There are no additional charges to those already described. 
Question 72 
Paragraph 67 lists the following charges applied to imports:  
(v)  Interest paid by importers for credit on custom duties;  
(vi)  A Late Payment Penalty or additional interest for delayed payment of duties and 
charges; and  
(viii)  Tax Penalties or fines and other judicial charges.  
Are the charges in paragraph 67(viii) levied  on both imports and domestic output?  
Answer:  
The expenses indicated in paragraph 67(viii) appl y to local goods and in the following situations: 
(a) Imported goods, and stored in the custom s warehouses beyond the legally established; 
(b) Penalties and fines applied to the accused a nd other responsible persons in the cases of 
customs crimes and contra-ordinations; 
(c) Judicial expenses paid by the parts in the referred cases. 
Question 73 
Paragraph 67 lists the following charges applied to imports:  
(v)  Interest paid by importers for credit on custom duties;  
(vi)  A Late Payment Penalty or additional interest for delayed payment of duties and 
charges; and  
(viii)  Tax Penalties or fines and other judicial charges. 
Are these charges applied uniformly to all imports under similar circumstances?  
Answer:  
Yes. 
Question 74 
Please provide information in the Draft Working Party Report text on the Tonnage Tax, levied 
as a charge per ton on vessels.  
Answer:  
The tonnage tax was eliminated by Article 38 of  Law No. 14/VI/2002, of 19 September 2002, which 
has already been submitted to the WTO Secretariat. WT/ACC/CPV/23 
Page 28  
 
 Question 75 
Paragraph 75: We remain concerned about the WTO consistency of the customs user fee of 1.04 
per cent of the CIF value on all imports desp ite the study that Cape Verde has done. GATT 
Article VIII requires that fees be charged based on  the cost of services rendered. The fact that 
amount of the fee changes depending on the value  of the goods would on its face seem to show 
that the fee was being charged on an ad valorem basis.  
Answer:
 
The 1.04 per cent fee ad valorem applied on the CIF value of the goods imported by sea for the 
payment of services rendered will be reviewed a nd if necessary the Government will take the 
necessary steps to bring it in line with Article VIII of the GATT.  The WTO Secretariat will be 
notified of the results of the efforts of th e Government of Cape Verde on this matter. 
Question 76 
Cape Verde should change its fee structure so th at it approximates the cost of services rendered 
for the customs processing of individual import transactions as well as for overall customs processing operations, and not to the value of the import.  
Answer:
 
If proven necessary, the Government of Cape Verde commits itself to adjust the structure of the fee so 
as to make it correspond to the cost of services rendered during customs operations. 
Question 77 
In addition, the level of the fee should be adju sted to ensure that all the revenues collected are 
used for customs processing of imports, since that is the reason they give for assessing it.  
Answer:  
If it proves necessary, the Government of Cape Verde co mmits itself to adjust the level of the fee to 
make it correspond to the cost of th e services effectively rendered a nd to utilize the proceeds collected 
for the customs clearing operations. 
Question 78 
If Cape Verde wishes to use revenues from the fee for export processing, it will have to apply it 
to exports as well. To be consistent with Arti cle VIII of the GATT, revenues from the fee cannot 
be used for expenditures not related to customs processing  
Answer:  
The Government of Cape Verde comm its itself, likewise, to apply the fee to services rendered in the 
exportation services. 
Question 79 We seek a commitment that from the date of accession Cape Verde will charge fees in a WTO 
consistent manner. We suggest the following text:   WT/ACC/CPV/23 
 Page 29 
 
 
 75bis The representative of Cape Verde confirmed that from the date of accession any 
fees or charges imposed on or in connect ion with importation and exportation, 
including but not limited to the current Customs User Fee of 1.04 per cent applied to imports, would be applied in accordance with Article VIII of the 
GATT 1994. The Working Party took note of these commitments.  
Answer:
 
The Government of Cape Verde thanks Member s for their suggestion and will take the steps 
necessary to implement the suggested writing. 
- Application of internal taxes to imports  
Question 80 
We suggest the following revision of coverage of these sections as follows to provide a more 
coherent framework for the description of the measures, their status, and how Cape Verde 
plans to bring them into conformity with WTO provisions.  
Taxes Applied to Imports:  
− VAT from 1 January 2004; 
− Special Tax on Consumption (STC) from 1 January 2004; 
− (Are these applied on an MFN basis?); 
− Tax on Duty-Free shops, introduced in 1970 (Is this tax still in place? What level?);  
− Environmental Tax, first revoked and then reintroduced in July 2004;  
− (Eliminated) Consumption Tax on imported goods;  
− (Eliminated) Miscellaneous Tax for recovery of minor charges;  
− (Eliminated) Special Tax on Consumption that was introduced on alcohol and tobacco 
in 1993. 
Answer:  
Cape Verde thanks Members for their suggestion a nd will take the necessary steps to implement it. 
Question 81 
As regards paragraph 78, it is noted that the en vironmental tax appears to be collected only on 
the imported products.  Could Cape Verde clarify how this tax is collected on the domestically 
produced products and what is the level of the tax collected? 
Answer:  
Paragraph 78 needs to be revised and updated.  Th e revision to Law No. 46/IV/2004 is in the final 
stages of approval.   
The revision of Law No. 46/IV/2004 will assess the environmental tax equally upon domestic 
products as well as imports. 
Question 82 
Paragraph 76:  Does Cape Verde still apply the Ta x on Duty-Free shops, introduced in 1970? If 
so, how does this tax work and what is its level of application?  WT/ACC/CPV/23 
Page 30  
 
 Answer:
 
No.  The fee on Duty-Free shops was revoked by Article 38 of Law No. 14/VI/2002, of 
19 September 2002, which has already been submitted to the WTO Secretariat. 
Question 83 
Paragraph 77, WT/ACC/SPEC/CPV/4 and WT/ACC/CPV/19 — Question 12:  We thank Cape 
Verde for Table 5 in the Draft Working Party Report . It is very helpful to have a list of goods by 
HS number subject to the Special Consumption T ax.  Has Cape Verde considered applying the 
tax only at the time of purchase, rather than importation?  Otherwise, some goods may be subject to double taxation. For example, if an au to dealership imports a car, they would need to 
pay the tax and then the consumer would have to pay the tax again at the time of purchase.  
Answer:
 
The Government of Cape Verde has not yet considered  this possibility.  The issue shall be studied and 
the decision reached shall be notified to the WTO Secretariat. 
Question 84 
Paragraph 78, WT/ACC/SPEC/CPV/4 and WT/ACC/CPV/19 - Question 14:  We appreciate the 
description provided by Cape Verde in Question 14 with regard to the environmental tax. Cape 
Verde's description seems to imply that there are different tax rates charged depending on the type of material in the good (non-bio-degradable wrapper, metal, glass or plastic). Is that statement accurate? If so, could Cape Verde pl ease provide the rates? Also, what government 
agency makes a determination whether a good contains a non-biodegradable good that is subject to the tax? Can a company appeal a decision?  
Answer:
 
At the time the declaration was made, it was, in  effect, correct.  However, the referred Law 
No. 46/VI/2004 of 12 July, that reintroduced the ec ology tax was the object of a revision and there 
already is a new draft of the referred Law, which al ters the ambit of the refe rred tax.  The new draft 
law will presented to the Parliament opportunely, fo r approval.  A copy of the new Ecology draft law 
has been submitted to the WTO Secretariat. 
Question 85 
Paragraph 81 indicates that VAT exemptions are not automatic but must be applied for. 
Please explain the process for obtaining a VAT  exemption.  How long does the General 
Directorate of Contributions and Taxation take to  reach a determination on an application? 
What are the criteria used to determine issuance of the exemption?  What avenues of appeal are 
open to a rejected applicant?  If an importer unknowingly pays VAT on a shipment that could 
have been VAT exempt, can the importer apply, ex  post facto, for a VAT exemption and obtain 
a refund?  
Answer:  
The request for VAT exemption is a ddressed to the Minister of Finance and Planning, but the decision 
to approve or deny VAT exemption on importation and on internal operations  may be delegated on 
the General Directors of Customs and Contribution And Taxation, respectively, who may, in turn,  WT/ACC/CPV/23 
 Page 31 
 
 
 sub-delegate said powers on the Customs Direct ors and Head of the Finance Delegations, 
respectively. 
The decision to grant the exemption or not has to be emitted within five workdays. The exemption criteria are spelled out in Artic les 9 and 12 of the VAT Regulation approved by 
Article 1 of Law No. 21/VI/2003. 
The decisions by the Directors of Customs and the Heads of Finance Departments can be appealed to 
the General Directorates of Customs and Contribu tions and Taxation, respectively.  The decisions 
from the latter can be appealed to the Minister of Fi nance.  The decisions by the Minister of Finance 
can be appealed to the Supreme Court of Justice.  
The aggrieved party may be entitled to reimbursement  under the terms of the current Customs Statute, 
these provisions are included in the draft Cust oms Law provided to the WTO Secretariat. 
Question 86 
Paragraph 81 also indicates that "certain dom estic operations" are exempt from VAT. What 
are these "operations?"  
Answer:
 
The exempt internal operations of the Value Added Tax (VAT) are contained in Article 8, 
subparagraphs a) to y) of Law No. 14/VI/2002 of 9 September, a copy of which was already 
submitted to the WTO Secretariat. 
Question 87 
We seek a commitment that from the date of a ccession Cape Verde would ensure that its laws, 
regulations and other measures relating to intern al taxes and charges levied on imports would 
be in full conformity with its WTO obligations, in particular Article III of GATT 1994, and that 
it would implement such laws, regulations and other measures in full conformity with those 
obligations.  
Answer:  
The Government of Cape Verde assumes the committe d to, from the date of its accession to the WTO, 
ensure that its laws, regulations and other measure s relating to internal taxes and charges levied on 
imports would be in full conform ity with its WTO obligations, in particular Article III of GATT 1994, 
and that it would implement such laws, regulations and other measures in full conformity with those 
obligations. 
Question 88 
As our review of Cape Verde's VAT, SCT, a nd environmental tax matures, we may need to 
modify this text.  
Answer:  
The Government of Cape Verde shall be pleased to receive future comments on Cape Verde's VAT, 
SCT and environmental tax measures,  and shall respond as required. WT/ACC/CPV/23 
Page 32  
 
 - Quantitative import restrictions, including prohibitions, quotas and licensing systems  
Question 89 Specific comments on the Draft Decree Law on Im port and Export licensing.  We note that the 
wording of Article 3 and 9 is "importation operati ons" - this gives the impression that a licence 
is required for each separate imports operation.  Pl ease clarify what is the validity of the import 
licence obtained? 
Answer:
 
An import licence is not required for each and every separate import operation.  The licence is valid 
for one year, and may be extended for a si milar period upon request of the importer. 
Question 90 
Specific comments on the Draft Decree Law on Im port and Export licensing.  What are the fees 
of import licences? What is their legal basis? 
Answer:  
Article 22 of the draft law provides that the amount of  the annual fee shall be fixed by an Ordinance.  
The Ordinance has been prepared and is in final stages  of approval.  The fee stated in the Ordinance is 
CVE 20,000. 
Question 91 
Specific comments on the Draft Decree Law on Im port and Export licensing.  Article 6 and 7 
appear not to be compatible with the WTO Ag reement on Import Licensing Procedures. The 
goods subject to both automatic and non-automati c licensing are not clear. The goods subject to 
licensing and the criteria for obtaining the licence  should be clear and exhaustive and publicly 
available.  
Answer:  
All goods are subject to automatic licensing except for goods that require control (sanitary and 
phytosanitary, animal origin and environmenta l products), which are subject to non-automatic 
licensing. 
The draft law on external commerce will be publis hed in the Official Bulletin, after approval. 
Question 92 
Specific comments on the Draft Decree Law on Im port and Export licensing as regards Article 6 
- clarify the contents of b): 
What are "goods without commercial value, whose does not exceed the amount defined 
by Ordinance from the member of the Govern ment responsible for the area of trade"? 
What is the amount referred to in this provision and what is its legal basis?  WT/ACC/CPV/23 
 Page 33 
 
 
 Answer:  
These are goods without commercial value, transporte d by travellers and destined for personal use, 
with amounts of CVE 100,000 and not weighting more  than 150 Kg.  The legal basis is Ordinance 
No. 4/2004, of 26 January. 
Question 93 
Specific comments on the Draft Decree Law on  Import and Export licensing as regards 
Article 6: 
Clarify contents of c): What are the other products subject to licensing and what is the 
legal basis of them? 
We note that the goods referred to in b) and c) should be clearly and exhaustively listed in the 
Decree.  
Answer:  
Other products in Article 6 (c) means goods with out commercial value described in Decree Law 
No. 51/2003, and will be eliminated in the revision of Draft-Law No. 51/2003. 
Question 94 
Specific comments on the Draft Decree Law on  Import and Export licensing as regards 
Article 7: 
Provide and exhaustive list of products subj ect to non-automatic li censing according to 
a) to c). 
We note that this list should be clear and exha ustive and form part of the provisions of the 
Decree Law.   
Answer:  
An exhaustive list of products subject to non-automatic  licence does not exist.  A decision is made on 
a case-by-case basis by the Customs General Director. 
In general, most products subject to non-automatic licensing are in Sections I, II and XVIII of the 
Harmonized System. 
Question 95 As regards Table 8, could Cape Verde explain the rationale of prohibiting imports of foodstuffs 
containing saccharin? 
Answer:
 
When researching the answer to the question it was discovered that foodstuff containing saccharin 
were prohibited.  Currently, however, foodstuffs  containing saccharin are no longer prohibited. 
Line 18, Table 8, in Paragraph 83, is incorrect and thus should be deleted. WT/ACC/CPV/23 
Page 34  
 
 Question 96 
An applicant's adherence to the "standstill principle" of not introducing new WTO- 
inconsistent measures once a state begins the negotiating process for WTO accession ensures the 
neutrality of the negotiation process and the ap plicant's negotiating credibility. Nevertheless, 
Cape Verde suddenly and without consultation with the Members of the Working Party 
instituted a non-automatic licensing procedure on  all products imported to and exported from 
Cape Verde in accordance with Ministerial Ordinances No. 3/2004 and No. 4/2004 of 26 January 2004.  To date, the Working Party ha s received no explanation for this action or 
description of the measure. In questions 78-85 of WT/ACC/CPV/20 and in paragraph 87 of WT/ACC/SPEC/CPV/4, when asked about Cape Verde's new import licensing system, the 
representative from Cape Verde noted that his Government was in the process of revising its 
licensing procedures. We would appreciate an ex planation for Cape Verde's adoption of this 
new licensing system and a description of the procedure.  
Answer:
 
Cape Verde confirms that the ne w regime for external commerce h as been concluded.  The revised 
procedures on imports and exports are in accordance with GATT 1947.  The TCE has been 
eliminated. 
The revised regime for external commerce was fo rwarded to the WTO Secretariat in June 2005. 
Question 97 
In following up after this meeting, Cape Verde should:  
− Indicate when information on the revised non-automatic licensing procedures will be 
presented to the Working Party;  
− Describe the scope and nature of the measure;  
− Explain its purpose;  
− Identify who would be eligible to apply for the licence,  
− List the criteria applied in issuing licenses, and,  
− Outline its plans, e.g., whether Cape Verde intended to narrow the coverage of this 
licensing regime to a limited number of products of particular interest or concern and how long the program is slated to last.  
Answer:
 
See answer to Question No. 96. Question 98 Additionally, Cape Verde needs to submit it s draft Import Licensing Questionnaire to the 
Working Party for review, as they will need to  make a formal notification upon accession under 
the Import Licensing Procedures Agreement.  
Answer:
 
Decree Law No. 51/2003, of 24 November 2003, whic h describes Cape Verde's Licensing Regime, is 
currently being revised with a view to bring it in conformity with the WTO's Agreement on Import 
Licensing Procedures.   WT/ACC/CPV/23 
 Page 35 
 
 
 The revised legislation takes the following operations in consideration: 
− Imports that are totally exempt from licensing;  
− Imports that are subject to automatic licensing; and 
− Imports subject to non-automatic licensing. 
Under the revised regime, the following ar e exempt from any kind of licensing: 
− Importation of goods without comme rcial value, under the terms that will be defined in 
ordinance of the government member responsible for the area of foreign trade; 
− Active and passive improvement operations, of temporary importation, re-importation in the 
state, re-exportation and transit; 
− Importations of goods subject to the special cu stoms regimes in the modalities of franc stores, 
bonded warehouses, franc deposit and special customs storage; 
− Industrialized goods, destined for consum ption in the area of congresses, fairs and 
international expositions and assimilated events; 
− Importation of goods destined for the provisionmen t of ships and aircrafts, under the terms of 
the applicable legislation;  
− Goods apprehended, abandoned, found at sea or stranded by it or salvaged from shipwreck 
and sold at auction; 
− Importation of goods without expenditure of currency, property of air and maritime 
navigation companies and destin ed for their exclusive use. 
Under the new regime, all importati on of goods is subject to automatic licensing except goods that 
require sanitary/phytosanitary control, or security  control (handguns, explosives and the like), or 
mandatory restrictions, required by law.  These goods are subject to a non-automatic licence regime. 
The automatic licensing becomes effective upon presen tation of a Customs Declaration to Customs. 
The importation request for the goods subject to non-automatic licence re quire a certificate of 
compliance issued by the sanitary/p hytosanitary authorities or security control authorities, or other 
applicable competent authorities, depending on the nature of the goods in question 
The non-automatic licence takes effect within a maximum of 21 days, counting from the date the 
Customs Declaration is presented to Customs.  
The revised licensing regime eliminates the TCE (a  foreign trade Title), which was required under the 
old regime.  However, the Foreign Trade Titles emi tted under the old regime w ill continue in effect 
until the end of their validity period.  
The export operations in Cape Verde are exempt fro m licensing, under the terms of Article 9 of law 
No. 92/IV/93, of 31 December. 
The foreign trade operations shall be liquida ted under the terms of the currency exchange. 
Question 99 
We seek a commitment from Cape Verde that add resses its intentions in terms of establishing 
non tariff barriers to imports. We do not see ho w the current licensing system can be considered 
WTO consistent, e.g., in terms of Article XI or  of compliance with the Agreement on Import 
Licensing Procedures upon accession. We suggest the following text:  WT/ACC/CPV/23 
Page 36  
 
 88bis The representative of Cape Verde confirmed that his government would 
eliminate from the date of accession, a nd would not introduce, reintroduce or 
apply, quantitative restrictions on imports or other non-tariff measures such as 
quotas, bans, permits, prior authorizat ion requirements, licensing requirements 
or other requirements or restrictions having equivalent effect that could not be 
justified under the provisions of the WTO Agreements. The import licensing 
regime from the date of accession would be  fully in accordance with all relevant 
provisions of the WTO, including the Agreement on Import Licensing Procedures. He further confirmed that th e legal authority of the Government of 
Cape Verde to suspend imports or to apply licensing requirements that could be 
used to suspend, ban or otherwise restrict  the quantity of trade would be applied 
from the date of accession in conformity with the provisions of WTO Agreements, including GATT 1994, the Agreements on Import Licensing Procedures and Safeguards, and the U nderstanding on Balance-of-payments 
Provisions of the GATT 1994. 
Answer:
 
Cape Verde thanks the Members for their s uggestions and accepts the commitment language 
suggested. 
Question 100 
Concerning Table 8:  Please elaborate on the purpose and WTO justific ation for the import prohibition listed in 
item 20.  Paragraph 83: "Substantive criteria" is applied in granting import permits for 
tobacco, which is also produced in Cape Verd e.  Please provide a detailed description of the 
process to import tobacco and cite legislatio n that makes this process compliant with the 
Agreement on Licensing.  
Answer:
 
As stated in paragraph 83, Cape Verdian Tob acco Company has exclusive rights to produce and 
import tobacco in Cape Verde.  There is an agre ement (contract) between Cape Verdian Tobacco and 
the Government, which lasts until 2012.  (Offici al Bulletin No. 20, II Series, 20 May 1997) 
Question 101 
Table 8: Please provide explanations for the prohibitions of numbers 1, 6, 7, 16, 18, 19, 20, and 
21.  For example, item one states, "animals a nd animal products from foreign areas where there 
is epizooty" are prohibited in Cape Verde. Do es this include all epizootic diseases? Has Cape 
Verde done risk assessments on all animal  diseases to have such a prohibition?  
Answer:  
It does not include all the epizooties.  The prohibiti on applies to the epizoo ties for which Cape Verde 
is not immune and that are consid ered dangerous to the effective national livestock (animal health), 
plants, vegetables (flora) that affect the national economy. 
Cape Verde respects and abides the principle of risk analysis and the international norms pertaining to 
the trade in animals and products of animal origin de fined by the OIE, of plants and vegetables, by the  WT/ACC/CPV/23 
 Page 37 
 
 
 IPCC committee, FAO, WTO, with regard to the san itary and phytosanitary situation and the sanitary 
and phytosanitary policy measures a pplied by the exporting country. 
Products in line 6, 7, 18 and 19 in Table 8 should be removed.  
- Customs valuation  
Question 102 
We note Cape Verde's request for a transitional period until 2009 for the full implementation of 
the Customs Valuation Agreement.  We reserve our po sition to come back on this issue and to 
give comments on the action plan, as well as the new draft Customs Code.  
Answer:  
Cape Verde thanks the Members for their comment s, and accepts the commitm ent to respond to the 
questions on the Action Plan for the implemen tation of the GATT Agreement on Value and the 
Customs Code, as soon as they are formalized. 
Question 103 
We note Cape Verde's confirmation in its revised  action plan of the commitment proposed for 
the implementation of the Agreement on Customs Valuation.  
Paragraph 95 should be amended to incorporat e the commitments in paragraphs 92-94, not 92 
and 94.  
Answer:  
The action plan for the implementation of the GATT Agreement on customs value shall be reviewed 
with a view to include the commitments containe d in paragraphs 92 to 94 of the Working Party 
Report. 
- Rules of origin  Question 104 We would appreciate to have the position of Cape  Verde on whether it would consider the EC as 
one entity for origin purposes. 
Answer:
 
The Rules of Origin are not precise and they are bein g reviewed.  It is not known when the definitive 
conclusions of the study currently under way shall be ended.  What is in effect are the provisions of 
Annex II to the Agreement on Rules of Origin. 
In the absence of specific provisions from the WT O, on the matter, the issue may be the object of 
negotiations. WT/ACC/CPV/23 
Page 38  
 
 Question 105 
Article 20 Cape Verde's Draft Customs Code states that origin is conferred "where the 
[product] was totally produced or where it suffered  the last transformation" as long as the 
conditions listed in the article are fulfilled.  
Please clarify in paragraph (a) what is meant by "the transformation results in specific 
properties and composition." Does this paragr aph refer to substantial transformation?  
Answer:
 
The paragraph refers to "substantia l transformation".  To be considered as such, a transformation or 
fabrication complement should be such that the product resulting there from presents specific 
properties and composition of its own that it not have before the transformation or fabrication 
complement. 
Question 106 
Article 20 Cape Verde's Draft Customs Code states that origin is conferred "where the 
[product] was totally produced or where it suffered  the last transformation," as long as the 
conditions listed in the article are fulfilled.  
Please clarify in paragraph (b) "Economically  justifiable." What is meant by "normal 
production process?"  
Answer:  
Normal production process is the process that lead s to passing the products from the raw material 
stage to the finished product stage. 
Question 107 
Article 20 Cape Verde's Draft Customs Code states that origin is conferred "where the 
[product] was totally produced or where it suffered  the last transformation," as long as the 
conditions listed in the article are fulfilled.  
Please clarify what is meant in paragraph (c) by "It took place in an enterprise equipped to that 
effect."  
Answer:  
The object of the condition expressed in paragraph c)  is to prevent a good produced by a company 
from been presented as originating in  a country, when that company is manifestly unable to do the 
transformation or to manufacture the good. 
Question 108 
Article 20 Cape Verde's Draft Customs Code states that origin is conferred "where the 
[product] was totally produced or where it suffered  the last transformation," as long as the 
conditions listed in the article are fulfilled.  
Please describe how this require ment is met in practice.   WT/ACC/CPV/23 
 Page 39 
 
 
 Answer:  
A good's origin is the country where it was wholly produced  or manufactured in accordance with the 
criteria established for the purpose of application of the customs table, as well as of any other 
measures related to trade. 
In the event that the good is not wholly produced in a country and two or more countries intervened in 
its production, the good originating in the country  where the last transformation took economically 
justified substantial transformation took place, perform ed in an enterprise equipped to that effect and 
from which results in obtaining a new product or represents an important phase of the manufacture. 
The transformation or manufacture complement for the purpose of determining the origin has been 
accompanied by four simultaneous conditions: 
a. It must be substantial; 
b. It must be economically justifiable; c. Have been performed in an en terprise equipped to that end; and 
d. Have resulted into a new product. 
Question 109 
Article 24 of the draft Customs Code states that the origin of goods must be proven through a 
certificate of origin or equivalent docume nt, issued by a "competent entity."  
Please clarify the definition of "competent entity?"  
Answer:
 
"Competent entity" refers to the entity authorized by the Government to issue certificates of origin, 
depending on the nature of the product. 
Question 110 Per the statement at the end of paragraph 98,  we suggest the following commitment text:  
99bis The representative of Cape Verdi stated that, from the date of accession, Cape 
Verde's laws and regulations for prefe rential and non-preferential rules of 
origin would comply fully with the WT O Agreement on Rules of Origin.  He 
further confirmed that Cape Verde's rules of origin would be established in law 
and notified to the WTO Secretariat and the Committee on Rules of Origin by 
the time of accession. The requirements of Article 2(h) and Annex HI, Paragraph 3(d) of the Agreement would be  fully implemented prior to accession. 
He also stated that, from the date of accession, the Customs Authorities would provide for an assessment of the origin of the import upon the request of an 
exporter, importer or any person with a ju stifiable cause.  Any request for such 
an assessment would be accepted even before trade in the goods concerned 
began.  Any such assessment would be binding for three years.  The Working 
Party took note of these commitments.  
Answer:
 
Cape Verde agrees with the commitment language suggested. WT/ACC/CPV/23 
Page 40  
 
 - Other customs formalities  
Question 111 Paragraph 100 indicates that the General Dire ctorate of Commerce must approve an import 
declaration for any shipment that exceeds CVE 100,000.  
What is the purpose of this approval? Please d escribe the process for obtaining this approval. 
How long does it take? Can the General Dir ectorate of Commerce disapprove an import 
declaration? If so, on what basis? What provision s for appeal exist if an import declaration is 
disapproved?  
Answer:
 
Cape Verde is pleased to inform that Decree La w No. 51/2003 which regulates the foreign trade 
regime that instituted the Foreign Trade Commerce Title (TCE) requirement is awaiting final approval 
by the Government. 
Decree Law No. 51/2003 is under revision and the revi sed version eliminates the TCE requirement for 
all goods except those subject to sanitary or security control. 
- Preshipment inspection  
Question 112 
We welcome the statement in paragraph 102, but  would suggest a revision of the commitment 
language in paragraph 103 along the following lines:  
[103. The representative of Cape Verde stated that if preshipment inspection 
requirements were introduced, they would be temporary and in conformity with 
the requirements of the Agreement on Preshipment Inspection and other WTO 
relevant agreements.  Cape Verde would take full responsibility to ensure that 
such enterprises operating on its behalf complied with the provisions of WTO Agreements including the Agreements on Technical Barriers to Trade, Sanitary 
and Phytosanitary Measures, Import Licen sing Procedures, the Implementation 
of Article VII, Rules of Origin, the Implementation of Article VI (Antidumping), 
Subsidies and Countervailing Measures, Safeguards, and Agriculture. The 
establishment of charges and fees would be consistent with Article VIII of the GATT 1994 and Cape Verde would en sure that the due process and 
transparency requirements of the WTO Agreements, in particular Article X of the GATT 1994 would be applied.  Decisions by such firms could be appealed by importers in the same way as administra tive decisions taken by the Government 
of Cape Verde.  The Working Party took note of these commitments.]  
Answer:
 
Cape Verde agrees with the commitment language suggested. 
- Anti-dumping, countervailing duties, and safeguard regimes  
Question 113 
We take note of the commitment in paragraph 106.   WT/ACC/CPV/23 
 Page 41 
 
 
 Answer:  
No answer needed. 
Question 114 
Cape Verde states that it intends to "develop a nd revise" its existing safeguard actions when it 
accedes to the WTO. How will this be possible if  it doesn't have in place WTO-consistent 
safeguard legislation?  
Answer:  
Cape Verde intends to draft WTO consistent saf eguard legislation, subsequent to accession. 
B. EXPORT REGULATION  
- Export subsidies  
Question 115 
Paragraph 115:  We would urge Cape Verde to provide comprehensive information on all 
subsidies and incentives.  When Cape Verde thinks  such a list could be available to the Working 
party? 
Answer:  
Law on Industry allows exemption of  import of raw materials, equi pment and construction materials 
during the building phase.  Cape Verde does not consider this a subsidy.  It is available to foreign and 
domestic investors. 
Tax exemption on all companies is not tied to exports. Please note Franc Enterprises are export only firms. 
Question 116 
In paragraph 110 of the Draft Working Party Report it states that Decree Law No. 32115 of 
7 July 1942, "though legally still in effect, had in practice been abrogat ed and was no longer 
used actively." Please explain whether this legislation will be repealed or whether it will continue to be in effect. If Decree Law No. 32115 of 7 July 1942 remains in effect, please provide 
the Working Party the text of this legislation.  
Answer:
 
The drawback regime approved by Decree No. 32115 of 7 July 1942 ceased to be applied many years 
ago due to the introduction of new regime, more  favorable to the producers, namely Decree 
Law No. 108/89 of 30 December 1989 that established the Industrial Statute and Law No. 99/IV/93, of 31 December 1993 that approves the juridical regime of the Free enterprise. 
Question 117 
We appreciate the information that Cape Verd e has provided in paragraphs 110 and 111 of its 
Draft Working Party Report regarding Law No . 92/IV/93 of 15 December 1993 and Decree Law WT/ACC/CPV/23 
Page 42  
 
 No. 1 08/89. We are in the process of evalua ting this legislation and will provide further 
questions regarding these programs at a later date.  
Answer:
 
Cape Verde is pleased that Members are evaluating the above-cited legislation, and looks forward to 
receiving questions (if any) regarding these programs. 
Question 118 We would like to thank Cape Verde for provi ding its legislation regarding the CAPEVERDE 
Investments program. We are in the process of  reviewing the legislation and will provide 
further questions on this program at a later da te. However, based on the information provided 
on this program in the reply to Question 17 of  document WT/ACC/CPV/20, it appears that 
investments under this program are appraised by sev eral criteria, one of which is national value 
added. We would like to note that to the extent that this program provides a benefit to companies contingent on the use of domestic over imported goods, this program would be an prohibited subsidy as provided under Article 3 of the Agreement on Subsidies and Countervailing Measures.  
Answer:
 
Cape Verde thanks Members for their co mments and note on export subsidies. 
Question 119 
We welcome Cape Verde's acknowledgement in paragraph 115 that it needs to provide the 
Working Party with a comprehensive description of  its subsidy programs. We look forward to 
receiving that document and commenting upon it.  
Answer:  
Subsequent to the Working Party Meeting of 14 July 2005, Cape Verde prepared a comprehensive 
Action Plan for the revision of the incentives to national production and to foreign investment.  A 
copy of the Action Plan is attached to this response. 
Plan of Action for the Revision of the Incentives to National Production and to Foreign Investment  
Implementation 
Actions Materials Deadlines Technical 
assistance 
Incentives to national production 31/12/2005 Yes Evaluation of the Situation  
Incentives to foreign investment 31/12/2005 Yes 
Incentives to national production 31/12/2005 Yes Collection of Statistical Data 
Incentives to foreign investment 31/12/2005 Yes 
Incentives to national production 30/06/2006 Yes Definition of the ambit of the 
plan and of the technical 
assistance for the restructuring Incentives to foreign investment 30/06/2006 Yes 
Results of the study Presentation and discussion (public in 
seminary or restricted?) 31/07/2006 Yes  WT/ACC/CPV/23 
 Page 43 
 
 
 Implementation 
Actions Materials Deadlines Technical 
assistance 
Critical implementation of the conclusions and 
recommendations Existing means to be restored and/or 
additional means to be made available 
and structured 31/08/2006 Yes 
Incentives to national production 31/12/2006 Yes Revision of the legislation 
Incentives to foreign investment 31/12/2006 Yes 
Incentives to national production 31/12/2007 Yes A posteriori monitorization 
Incentives to foreign investment 31/12/2007 Yes 
DGIE, 10 June 2005 
Question 120 
When does Cape Verde anticipate filing this subsidy notification?  Answer:
 
See answer to Question No. 119. 
Question 121 
Given Cape Verde's impending graduation from LDC status, we will seek a commitment that all 
aspects of Article 3 under the SCM Agreement, which includes the prohibition of subsidies 
contingent upon export performance, as enum erated in Article 3.1(a), must be accepted. 
Therefore, we seek a commitment from Cape Verde not to introduce new subsidies prohibited by the ASCM henceforth and to eliminate by a date certain existing prohibited subsidies. 
Answer:
 
Cape Verde agrees with the commitment language suggested. Question 122 This proposed language may require modificati on depending on the information provided in 
Cape Verde's anticipated subsidy notification.  
Answer:
 
No answer needed. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  
- Industrial Policy, including subsidies  
Question 123 We would urge Cape Verde to provide comprehensive information on all subsidies and 
incentives, including incentives mentioned in paragraphs 116 to 120. WT/ACC/CPV/23 
Page 44  
 
 Answer:
 
Subsequent to the Working Party Meeting of 14 July 2005, Cape Verde prepared a comprehensive 
Action Plan for the revision of the incentives to national production and to foreign investment.  A 
copy of the Action Plan is attached to this response. 
Plan of Action for the Revision of the Incentives to National Production and to Foreign Investment  
Implementation 
Actions Materials Deadlines Technical 
assistance 
Incentives to national production 31/12/2005 Yes Evaluation of the Situation  
Incentives to foreign investment 31/12/2005 Yes 
Incentives to national production 31/12/2005 Yes Collection of Statistical Data 
Incentives to foreign investment 31/12/2005 Yes 
Incentives to national production 30/06/2006 Yes Definition of the ambit of the 
plan and of the technical assistance for the 
restructuring Incentives to foreign investment 30/06/2006 Yes 
Results of the study Presentation and discussion (public in 
seminary or restricted?) 31/07/2006 Yes 
Critical implementation of the 
conclusions and 
recommendations Existing means to be restored and/or 
additional means to be made available and 
structured 31/08/2006 Yes 
Incentives to national production 31/12/2006 Yes Revision of the legislation 
Incentives to foreign investment 31/12/2006 Yes 
Incentives to national production 31/12/2007 Yes A posteriori monitorization 
Incentives to foreign investment 31/12/2007 Yes 
DGIE, 10 June 2005 
Question 124 
It would appear that some investment incentives described in this section may be contingent 
upon export performance and/or use of local content. We look forward to receiving and 
reviewing Cape Verde's subsidies notifi cation at the earliest opportunity.  
Answer:  
Cape Verde will prepare and submit its subsidies notification at the earliest opportunity. 
Question 125 
The draft commitment language it paragraph 1 22 may need revision depending on the content 
of Cape Verde's subsidy notification.  
Answer:  
See answer to Question No. 119. Cape Verde agrees that the language of paragraph 122  will have to be revised in light of the new 
Action Plan.  WT/ACC/CPV/23 
 Page 45 
 
 
 Question 126 
Paragraph 122: We support the statement in this text, but recognize that Cape Verde has 
considered seeking transitional arrangements fo r these measures in light of its imminent 
graduation from LDC status. We seek a comprehen sive and specific proposal from Cape Verde 
on this issue, for all the subsidy measures describe d in this section and in the sections on Export 
Subsidies and Free Zones.  
Answer:  
See answer to Question No. 119 and No. 125. The Action Plan on revision of incentives has now been  forwarded to the WTO.  The Action Plan sets 
forth a work program to review incentives with a view  to their elimination, as well as a revision of the 
applicable CV legislation. 
- Technical barriers to trade, standards, and certification  
Question 127 We note the commitment of Cape Verde to reco gnise products certified in other countries' 
authorized certifying body. 
Answer:
 
No Answer required. 
Question 128 
We note that, at present, Cape Verde does no t appear to apply any technical requirements 
either to imports or to domestically produced g oods.  We also note that Cape Verde does not 
appear to be doing anything in violation of the TBT Agreement.  
Answer:  
Cape Verde appreciates the "note". 
Question 129 
We welcome Cape Verde's establishment of a TBT e nquiry point, its intent to provide for prior 
publication for public comment of draft techni cal regulations, standards, and conformity 
assessment requirements as soon as possible based on technical assistance.  
Answer:  
Cape Verde appreciates the comments and intends to provide draft technical regulation, standards and 
conformity assessment as soon as possible, based on technical assistance provided and available. 
Question 130 
In the absence of additional legislation to govern  the development and application of standards, 
technical regulations, and conformity assessme nt procedures in developing new requirements, WT/ACC/CPV/23 
Page 46  
 
 Cape Verde should not create unnecessary obstac le to trade and should app1y principles of 
national treatment, MFN treatment, and transparency.  
Answer:
 
Cape Verde appreciates the comments and agrees to not create unnecessary obstacles to trade, and 
apply principles of national treatment, MFN treatment and transparency. 
Question 131 Cape Verde should recognize that its obligations  under that agreement will begin with accession 
to the WTO.  Cape Verde will need a commitm ent that captures these elements and confirm 
that from accession it will not implement a measure covered by the TBT Agreement that is 
inconsistent with that agreement.  
Answer:
 
Cape Verde recognizes its obligations under this agreement will begin with accession to the WTO, 
and confirms that from accession Cape Verde will not implement any measure covered by the TBT 
Agreement that is inconsis tent with the Agreement. 
Question 132 
We will provide draft text in this  regard following this meeting.  
Answer:  
Cape Verde looks forward to receiving the draft text to be provided. 
- Sanitary and phytosanitary measures  
Question 133 We note Cape Verde request for a transition period until 2010 to ensure full conformity with 
the SPS Agreement and reserve our position to s ubmit further comments on this section. 
Answer:
 
Cape Verde thanks the Member for its comment, and awaits further comments on this section. 
Question 134 
It would be beneficial if the Members could re view draft legislation related to sanitary and 
phytosanitary measures, to ensure that new sci ence-based legal requirements on food safety, 
animal and plant health are consistent with international standards.  
Answer:  
These comments are noted and welcomed. 
Question 135 
In this regard, we have begun a review of Ca pe Verde's draft Livestock Law and anticipate 
providing comments on it by the end of July.   WT/ACC/CPV/23 
 Page 47 
 
 
 Answer:  
Cape Verde thanks Members for their review of the draft Livestock Law, and looks forward to 
receiving comments. 
Question 136 
We commend Cape Verde for moving forward on  becoming a member of the OIE. How far is 
Cape Verde in this process?  
Answer:  
Cape Verde thanks Members for their commendation for moving forward on becoming a member of 
the OIE. 
Cape Verde's request is in the Ministry of Foreign Affairs being processed. Question 137 We remind Cape Verde to notify to the WTO when the Enquiry Point for SPS changes to the 
Ministry of Environment, Agriculture, and Fisheries.  
Answer:
 
Cape Verde agrees to promptly notify the WTO when the Enquiry Point for SPS changes from the 
Ministry of Environment, Agriculture and Fisheries. 
Question 138 
We thank Cape Verde for submission of its recent SPS action plan. This action plan is a marked 
improvement from Cape Verde's previous SPS checklist and further demonstrates Cape 
Verde's commitment to bring its laws and regul ations into compliance with the SPS Agreement.  
Answer:  
The action plan presented represents Cape Verde's mani fest will to cooperate with other International 
Institutions and Organizations, with technical assi stance in producing the required legislations and 
regulations, and to harmonize its existing SPS legislati on to bring in conformity with the international 
norms in effect, so that when the proposed time-lim it of 2010 is reached Cape Verde is apt to comply 
in full with the SPS measures.  
It should be emphasized that the different laws, nor ms and regulations shall be implemented in phases 
(transitory phase) in conformity with the action plan proposed in WT/ACC/CPV/10/Rev.1. 
Question 139 
Cape Verde has highlighted specific efforts, re sults and timeframes to bring its sanitary and 
phytosanitary system into compliance with the SPS Agreement. These are very positive 
developments. We would like to reserve comments on these specific measures at this time and 
instead focus on two of Cape Verde's specific  requests, for technical assistance and for a 
transition period until 2010.  WT/ACC/CPV/23 
Page 48  
 
 Answer:
 
The proposals for regulation and harmonization of th e national laws with international norms (FAO - 
Codex alimentarius, WTO; OIE , WHO, IPCC, etc.) sh all require international technical assistance.  
The international experts (lawyers, experts in anim al and vegetable quarantine, specialists in risk 
analysis, specialists in epidemiology, microbiol ogy…) shall work with the consultants/national 
personnel in their specific action areas. 
The creation of the infrastructural conditions and the acquisition of equipments for the operation of 
laboratories, existing quarantine stations and othe r to be open and the epidemiological vigilance. 
The improvement and strengthening of the quality c ontrol unit, laboratories, quarantine system and 
field veterinary system. 
The specialized training on the outside with a 2-4 years duration, internships of short to medium 
duration (in-country and on the outside), local trai ning of national staff, economic operators, and 
public in general in different areas with special emphasis on quarantine management, meat inspection, 
veterinary and vegetable research, animal and vege table disease risk assessment, quality control, etc. 
The raising of awareness and the dissemination of  the SPS and TBT measures to the staff personnel, 
the public in general, economic opera tors, farmers and animal breeders,  etc., is a task that requires 
contacts through mass media, instructional meetings/gatherings. 
The reorganization/organization of all these system s in consonance with the SPS measures requires a 
transition period for Cape Verde for the creation of solid bases vis-à-vis  the implementation of SPS 
measures.  
In order to have harmonization between the pl anned/executed/implementation and efficacy in 
compliance with its obligations, Cape Verde shall need, for the reasons indicated above, a transition 
period that should run until 2010.  
Question 140 
Cape Verde has already indicated that it could establish and operate a single enquiry point for 
SPS information and participate in internaton a1 standard-setting bodies (OIE, Codex) upon 
accession.  
Answer:  
Beginning in January 2006, Cape Verde expects to have appointed (see action plan presented in 
WT/ACC/CPV/10/Rev.1) a focal point for matters re lated to OIE, FAO, WHO, Codex, as well as to 
have created an office to that effect. 
The DGASP, MAAP's focal point has been participat ing in international and local events (ECOWAS, 
CILLS) in matters related to IPCC.  
Question 141 
Prior to or upon accession, we would also li ke to suggest that Cape Verde commit to 
provisionally adopt international standards, gu idelines, and recommendations where possible. If 
no standards exist for some specific items,  Cape Verde may provisionally adopt WTO- 
compliant sanitary or phytosanitary measures from other WTO Members.   WT/ACC/CPV/23 
 Page 49 
 
 
 Answer:  
Cape Verde offers its thanks for the suggestions  presented for the applications of the norms and 
standards of the WTO Members.  
Cape Verde informs that in spite of the non-exis tence of national norms for all the products and 
specific items, the Cape Verdian legislations on th e matter of SPS ensue also for the application of 
norms from FAO, WTO, WHO, O.I.E, Codex Alimentarius, IPCC, norm and Directives from the 
European Union and compliance with regional and bilateral agreements. 
It is based on these legal provisions that Cape Verde has been applying the SPS measures in the 
international and the national trade. 
Question 142 
With implementation of these commitments and appropriate technical assistance, Cape Verde 
would be in a position to accelerate its complete adoption of the SPS Agreement by 
1 January 2009.  
Answer:  
With the international technical assistance assured an d financed, Cape Verde shall be in the condition 
to accelerate the implementation of the measures in January 2009, in conformity with the action plan 
proposed. 
- Trade-related investment measures  
Question 143 We welcome Cape Verde's statement in paragr aph 131 and would like to propose that Cape 
Verde commit to comply fully with the TR IMs Agreement upon accession to the WTO.  
Answer:
 
Cape Verde thanks Members for their comments.  Cape Verde has no TRIMs measures at this time.  
If Cape Verde adopts TRIMs measures, they w ill be in full compliance with the WTO TRIMs 
Agreement. 
- State Trading Entities  
Question 144 
We appreciate that the importation of rice, corn , sugar and wheat flour are no longer subject to 
state trading (paragraph 136 of WT/ACC/SPEC/CPV/4). 
It would be useful if the essentials of the impo rt regime for these products set out in Decree Law 
No. 29/2002 and Ministerial Ordinance No. 6/2004 could be described in the report. 
Answer:  
1.  The Cape Verdean legislation currently in effect requires de following conditions for 
registration as an importer of staple goods: WT/ACC/CPV/23 
Page 50  
 
 (a) Be a commercial importer under the te rms of the commercial legislation; 
(b) Have the capacity to distribute 30 per cent of the annual volume of imported staple goods, in 
islands other than S. Tiago and S. Vincente; 
(c) Have warehouses appropriate for the storage of the staple goods proposed to be imported; 
(d) Annual renewal of the registration as an impor ter of staple goods, by payment of the annual 
fee of CVE 20,000 and CVE 2,000 in emoluments (Re. Ordinance No. 2/99, of 8 February); 
(e) Duty to send to ANSA – National Agency for Food Security – monthly information on their 
stock in the diverse islands. 
2.  Note: Decree Law No. 29/2002, of 9 December and Ordinance No. 2/99 of 8 February have 
been revised.  A new law is now in the appr oval process by the Cape Verde Parliament.  The 
new law eliminates the 30 per cent requirement  indicated in subparagraph b) No. 1. 
Question 145 
We look forward to seeing Cape Verde's notification on state trading. 
Answer:
 
The Government of Cape Verde confirms that th ere are no state owned enterprises other than those 
listed in the Paragraph 28, Table 2 of WT/ACC/SPEC/CPV/4.  
Cape Verde further confirms that EMPROFAC is  currently in the process of privatization. 
Cape Verde commits itself to notified WTO wh en the privatization process is concluded. 
Question 146 
Paragraph 133: Shell and ENOCOL enjoy concession  rights to import and distribute petroleum 
derivatives. What are the corporate structures of Shell and ENOCOL in Cape Verde?  How are 
their concession rights not special trading priv ileges as defined by Article XVII of the GATT?  
Answer:  
See answer to Question No. 13. Cape Verde confirms that the corporate structur e outlined in Question No. 13 applies as well to 
ENACOL and Shell. 
Cape Verde is pleased to inform Members that SHELL and ENACOL are not State Trading 
Enterprises. They are private enterprises and as such  they purchase their products in the International 
Market in open and fair competition, which they  distribute in Cape Ve rde in accordance with a 
Covenant that grants them exclusively distribution for a limited period (up to 2007).  
Question 147 
Paragraph 134: Cape Verdean Tobacco enjoys th e exclusive right to import tobacco. Please 
explain why the Government of Cape Verde beli eves that these exclusive rights do not place 
Cape Verdean Tobacco's operations under th e purview of Article XVII of the GATT.  WT/ACC/CPV/23 
 Page 51 
 
 
 Answer:  
In truth, the Compainha Caboverdiana de Tabacos, Lda enjoys a monopoly in production and 
importation of tobacco in the entire national territo ry, in accordance with Clause 2 of the contract 
signed on 2 May 1997, between the referred compan y and the Government of Cape Verde.  The 
referred to contract precedes the date of presentation of Cape Verde's Foreign Trade Memorandum to 
the WTO.  That being the case, in elaborating the contract the non-discrimination principle 
consecrated in GATT's Article XVII was not adhered to.  The Government is studying the situation 
with a view to finding a solution. 
Question 148 
We recommend that this section be combined with the section on State-owned enterprises and 
privatization.  
Answer:  
No answer needed. 
Question 149 
We look forward to the opportunity of reviewing Cape Verde's State trading notification at the 
earliest opportunity. Based on the information pr ovided so far, we believe that Shell, ENOCOL, 
EMPROFAC, and Cape Verdean Tobacco should be  notified as State Trading Enterprises to 
the WTO under Article XII of the GATT. 
Answer:  
Please see answer to Question No. 13. Cape Verde believes that these companies are no longer State Trading Enterprises.  Therefore, 
notification pursuant to Article XII is not necessary. 
- Free zones, special economic areas  
Question 150 Paragraphs 138 to 142:  We would urge Cape V erde to revise its policy related to free zones, 
and the system of "free enterprises" to bring them into compliance with the WTO Subsidies 
Agreement. 
Answer:
 
Cape Verde commits to revising its policy related to  Free Zones, and the system of "Free Enterprises", 
and to bring them into compliance with th e WTO Agreement on Subsidies and Countervailing 
Measures, upon accession. 
Question 151 
How many companies have been designated as "free enterprises?" Please list the companies 
that enjoy "free enterprise" privileges and the sectors in which they operate. Please describe 
how the duty exemptions "free enterprises" en joy are managed? What does "Raw materials WT/ACC/CPV/23 
Page 52  
 
 and intermediate products used in goods export ed by a free enterprise could be imported 
through a suspension of the customs regi me" mean? Please describe this process.  
Answer:
 
There are five free enterprises in activity today. In the garments area the following companies operate:  
Cape Verde Clothing Company 
Euro-Africa Ltd Verde Vest 
In the Footwear area:  Universos 
In Shoe Parts Manufacturing: 
 ICCO The franc enterprises enjoy total customs duties ex emption and other impositions, current and future, 
applicable to importation of the following goods, wh en destined to the operation of the same:  
Construction materials, including metal structures, for the installation, expansion or renovation of 
their establishments; machines, apparatuses, inst ruments and utensils, as well as the respective 
accessories and spare parts for buildings and equi pment destined for their establishments; cargo 
handling equipment and transports for goods for the exclusive use of the ente rprise, necessary to the 
development of their activities; fuel and lubrican ts, except for gasoline, utilized strictly in the 
production of electrical energy and d esalinated water for self-consumption. 
"Raw materials and intermediate products used in  goods exported by a free enterprise could be 
imported through a suspension of the customs regime " means that the materials are imported in a 
customs regime that permits their storage, circula tion or transformation within the customs territory, 
with suspension of the duties, fees and prohibitions if  the same materials are destined to be exported, 
reexported or launched in the internal market. 
The raw materials and subsidiaries and finished and semi-finished products, utilized strictly in 
production of goods to be exported are admitted un der the suspensive customs regime.  They are 
cleared from customs with the suspension of all dut ies and fees immediately upon unloading, by way 
of a simplified declaration, and transported to a warehouse of the beneficiary enterprise and are taken 
from there, under customs supervision, to the manufact uring area.  The final product is then exported, 
also under customs supervision.  The customs supe rvision in both operations permits the control of 
the application/destination of the imported materials/ final products, to prevent the unauthorized use of 
the privilege.  
Note:  15 per cent of the of the previous year pr oductions of the Free enterprises can be sold in the 
local market if solicited by the enterprise and approv ed by the Minister of Finance, upon payment of 
the importation duties and other customs impositions. 
Question 152 
We request that Cape Verde include all inform ation on its incentives related to free zones, 
special economic areas, and "franc" or 'free" enterp rises in its subsidies notification. We concur  WT/ACC/CPV/23 
 Page 53 
 
 
 with the view expressed in the final paragraph of  the section that the "free enterprise" criteria 
appear to be inconsistent with the provisi ons of the ASCM. We welcome Cape Verde's 
commitment to eliminate prohibited subsidies by a date certain.  
Answer:  
Please see answer to Question No. 119. 
The referenced Action Plan will review all incen tive programs in Cape Verde with a view towards 
their elimination or conformity with the SCM Agreement. 
- Government procurement  
Question 153 Could Cape Verde explain the legislative and regulative framework for the procurement of 
construction services. 
Answer:
 
Cape Verde informs that: 
− The activities of Public Works Contractors and Private Construction Undertakings are 
regulated through Decree Law No. 87/89, of 24 November 1989;  
− That punctual alterations were introduced by Decree Law No. 61-A/99, of 25 October 1999, 
to remove restrictions on nationality requireme nts for shareholders of civil construction 
companies with access to the Capeverdian market; and 
− The law requires that all companies or bran ches thereof, operating in Cape Verde, be 
constituted in conformity with Cape Verdian Law, with a main office in Cape Verde, and 
obtain the necessary authorizations required by law.  
Contracts for the execution of construction works with outside financing, are not required to comply 
with the above. 
Question 154 Could Cape Verde explain whether there are ex emptions from the obligation to publish in 
advance all tenders? 
Answer:
 
Cape Verde follows the World Bank guidelines.  It is obligatory to publish all tenders in advance. 
However, a tender under CVE 100,000 (approximately US$ 1,000) is an exception. 
For the under US$ 1,000 projects, the General Director ate of Patrimony contacts three local suppliers 
for bids.  
Question 155 
Are foreign suppliers, and suppliers of foreign go ods and services, eligible to participate in all 
public tenders in Cape Verde, a nd if so, under which conditions? WT/ACC/CPV/23 
Page 54  
 
 Answer:
 
As stated in the answer to Question No. 154, Ca pe Verde follows the World Bank guidelines.  The 
World Bank has four procedures for adjudicating co ntracts for the supply of goods and services, as 
follows:  (1) International tender; (2) National tender; (3) Request for quotes from suppliers; and 
(4) International consultations. 
National tender applies to products available in the Cape Verdian market .  National tenders are 
published in local newspapers and request bids from suppliers.  In such cases, suppliers can obtain the 
goods or services from whatever source, including foreign sources. 
Question 156 
Does the Cape Verde procurement regime offer unsuccessful bidders the possibility to have 
their situation reviewed, and if so, by which body? 
Answer:  
The Cape Verde procurement regime establishes an evaluation committee, the rules for review by 
unsuccessful bidders are set forth in the tender doc ument.  An unsuccessful bidder must follow the 
procedures, which essentially are first, a review by  the evaluation committee, and if the results are 
unsatisfactory the issue goes to the minister of the appropriate ministry. 
If the unsuccessful bidder is still not satisfied with the decision of the Minister, then an appeal to the 
Court may be filed. 
Question 157 
We invite Cape Verde to participate in the WTO Agreement on Government Procurement as an 
observer as a prelude to future participation as a Member in this agreement.  
Answer:  
Cape Verde thanks Members for their comment a nd will take the suggesti on under consideration. 
- Transit  
Question 158 We suggest the following language fo r a commitment for this section.  
"The representative of Cape Verde confir med that his Government would apply any 
laws, regulations and practices governing transit operations and would act in full conformity with the provisions of the WTO Ag reement, in particular Article V of the 
GATT 1994. The Working Party took note of this commitment."  
Answer:
 
The Government of Cape Verde agrees with the suggested language for a commitment for transit.  WT/ACC/CPV/23 
 Page 55 
 
 
 - Agricultural Policies  
(a) Imports  Question 159 We would appreciate clarification that th e requirement described in paragraph 147 of 
WT/ACC/SPEC/CPV/4 for manufacturers to nominate  their own use-by dates is not based on 
any mandatory periods of shelf life for particular products. 
Answer:
 
The restriction or prohibition (absolute or relative)  on importation of animals, food or products of 
animal origin, plants, vegetables are applied to species  of animals, plagues reput ed to be dangerous to 
the livestock population and the national flora or originating in countries where zoonoses or grave, 
rapidly spreading zoonoses exist. 
All the importation of animals, food of animal or igin, plants, vegetables or products of vegetable 
origin must be accompanied by an international san itary (salubrity)/phytosanita ry certificate, issued, 
signed and stamped by the Official Sanitary Author ities (animals and products of animal origin) or 
Phytosanitary Authorities (plants and vegetables). 
The consumer's right to information (date of production, validity date, method of conservation, 
ingredients, etc…) should be indicated on the package/label. 
Question 160 
We would like to remind Cape Verde that quantit ative restrictions are not permitted under the 
Agreement on Agriculture. If prohibitions are implemented, Cape Verde must complete a risk 
assessment to justify the prohibitions.  
Answer:  
Cape Verde thanks Members for this reminder and c onfirms that if quantitative restrictions under the 
Agreement on Agriculture are implemented, Cape Verd e will complete a risk assessment to justify the 
prohibition. 
Question 161 
Note, this entire section should be moved. The first half of the paragraph, ending at 
"... certificate of origin" should be under th e SPS section. The remaining sentences should be 
under TBT, as shelf life and labeling are TBT issues.  
Answer:  
Cape Verde agrees with the suggested alteration. 
Question 162 
Comments on Cape Verde's Domestic Support Tables (WT/ACC/SPEC/CPV/l/Rev.1). WT/ACC/CPV/23 
Page 56  
 
 Thank you for the revised tables. We know that  these tables are complex and time- consuming 
to prepare, even for developed countries, and we  appreciate the hard work. We only have a few 
clarifying questions about the data and notified measures.  
Answer:
 
Question does not require a response.    Question 163 Comments on Cape Verde's Domestic Support Tables (WT/ACC/SPEC/CPV/l/Rev.1). 
Please make sure that monetary values and un its of Green Box Measures are correct. For 
example, did Cape Verde spend $261 billion CV E (US$3 billion) in 1998 on environmental 
measures and $523 billion CVE (US$6 billion)  for infrastructure services in 1999?  
Answer:
 
Cape Verde clarifies that the amounts indicated in the Table pertaining to Green Box measures are 
expressed in millions of CVE and not in b illions of CVE and the question suggests. 
Thus, the amount of 30.907 should read CVE 30,907,000 CVE and not CVE 30,907,000,000. 
DOMESTIC SUPPORT: CAPE VERDE 
REPORTING PERIOD: 1998 – 2003  
(excluding 2000 due to unavailable data; 2003 data refer to the first semester only) 
Measures exempt from the re duction commitment – "Green Box" 
 
Measure type Name and description of 
measure with reference to 
criteria in Annex 2 of the 
Agreement on Agriculture Monetary value of 
measure in year in 
question 
(in Millions of CVE)1  
Data sources 
1 2 3 4 
General services Research – research 
pertaining to agriculture in 
arid zones, applied research 
in horticulture, roots and 
tubercles, irrigation, and 
integrated production and protection of the cultures.    Ministry of Environment, 
Agriculture, and Fisheries; 
and Ministry of Finance 
 1998 30.907 
 1999 16.950 
 2001 20.468 
 2002 4.000 
 2003 12.560  
                                                      
1 US$ 1 is equal to approximately CVE 86.  WT/ACC/CPV/23 
 Page 57 
 
 
  
Measure type Name and description of 
measure with reference to 
criteria in Annex 2 of the 
Agreement on Agriculture Monetary value of 
measure in year in 
question 
(in Millions of CVE)1  
Data sources 
1 2 3 4 
 Extension – includes 
making available the means 
to facilitate the transfer of 
information; training of the extentionists; production 
and diffusion of awareness 
programs, and information to the farmers.   
 1998 18.649  
 1999 16.737  
 2001 7.797  
 2002 0.900  
 2003 4.598  
 Infra-structures – rural 
engineering projects, such 
as soil and water conservation, construction 
of dikes, water collection 
structures, reservoirs, and mobilization of water for 
irrigation.   
 1998 474.382  
 1999 523.212  
 2001 494.462  
 2002 496.613  
 2003 0.54  
 Support to the development 
of agricultural production – 
dissemination of localized 
irrigation systems, promotion of hydroponics 
and aeroponics 
diversification of rain fed agriculture, agricultural 
surveys, development of 
fruit agriculture..   
 1998 36.084  
 1999 27.257  
 2001 14.003  
 2002 38.232  
 2003 57.295  WT/ACC/CPV/23 
Page 58  
 
  
Measure type Name and description of 
measure with reference to 
criteria in Annex 2 of the 
Agreement on Agriculture Monetary value of 
measure in year in 
question 
(in Millions of CVE)1  
Data sources 
1 2 3 4 
 Support to the development 
of livestock –  Training of 
inspectors; animal 
sanitation; improvement in the conditions of slaughter; 
improvement in the 
production, collection and conservation of animal 
feed; development of 
apiculture and of rabbit breeding; support to the 
transformation and 
improvement of products of animal origin.    
 1998 7.156  
 1999 2.400  
 2001 0  
 2002 13.344  
 2003 30.981  
 
Question 164 
Comments on Cape Verde's Domestic Support Tables (WT/ACC/SPEC/CPV/l/Rev.1). 
Please provide total amounts of Green Box Measures  for each year for which complete data is 
available.  
Answer:  
Please see answer to Question No. 163.  The amounts indi cated in the Table provided in the answer to 
Questions No. 163 are, in effect, the amounts spent.   The information provided is contained in the 
official report from Cape Verde's Ministry of Agriculture. 
Question 165 
Comments on Cape Verde's Domestic Support Tables (WT/ACC/SPEC/CPV/l/Rev.1). 
Please provide Annex 2 criteria for the measures  "Support to the development of agricultural 
production" and "Support to the development of livestock". Did any of these measures consist 
of direct payments to agricultural producers? If so, these should be listed separately under 
direct payments.  
Answer:  
Please see answer to Question No. 16 3.  Information regarding the s upports in question is supplied in 
the Table of the Government of Cape Verde Inv estment Program seeking to develop agriculture and 
livestock.   
Cape Verde confirms that none of the measures applie d consists in direct payments to the producers.  WT/ACC/CPV/23 
 Page 59 
 
 
 (c) Internal policies 
- Textiles Regime  Question 166 We would appreciate if this section could include any statistics on the level of investment in 
Cape Verde's textile and garment industry and Ca pe Verde's trade in textiles and garments.  
Answer:
 
The level of investment in Cape Verde's textile  and garment industry was US$ 5,060,000 during the 
period of 2000 to 2004. 
The level of trade in Cape Verde textile and garment industry was CVE 3,366,826,392 during the 
period 2000 through the first semester of 2005. 
V.  TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS REGIME - GENERAL  - Industrial Property Protection  Question 167 We welcome Cape Verde's intentions to be in conformity with the provisions of TRIPS by 
December 2006 and reserve our position to submit more comments on this section at a later 
stage. 
Answer:
 
Cape Verde confirms that the Industrial Property Code is completed and in the final stages of 
approval within the Government.  It is envisaged  that parliamentary approval of the Industrial 
Property Code will be give n before December 2005.  
Cape Verde thanks the Member for its position an d looks forward to comments at a later date. 
Question 168 
We thank Cape Verde for providing the replies to  additional questions in WT/ACC/CPV/19 and 
WT/ACC/CPV/20, and for providing a copy of th e draft new Industrial Property Code.  We are 
still reviewing the new draft Industrial Property Code and may have additional comments and 
questions following this Working Party meeting.  
Does Cape Verde still expect to promulgate a ne w Law on Industrial Property in July 2005?  
Answer:  
No.  However, the draft Code is completed and is  expected to be passed by the Parliament by 
December 2005. WT/ACC/CPV/23 
Page 60  
 
 - Participation in international intellectual property agreements 
Question 169 We note Cape Verde's intention to join the Pa ris Convention for the Protection of Industrial 
Property and would welcome a status report on this.  
Does Cape Verde intend to accede to the Inte rnational Union for the Protection of Plant 
Varieties (UPOV Convention), the Budapest Trea ty on the International Recognition of the 
Deposit of Microorganisms for the Purposes of Pa tent Procedure (Budapest Treaty), and/or the 
Patent Cooperation Treaty (PCT)?  
Answer:
 
At this time, the Government of Cape Verde h as no intention of acceding to the above-mentioned 
conventions and treaties.  However, these are im portant conventions/treaties to the Intellectual 
Property sector of all countries.  Therefore, Cape Verde would like to advise that the Government will 
take under consideration accession to these conventions/treaties. 
Question 170 
According to Paragraph 160 of the draft working party report on the Accession of Cape Verde 
(document WT/ACC/SPEC/CPV/4), we understand that  Cape Verde does "not intend to ratify 
and implement the WIPO Copyright Treaty and the WIPO Performances and Phonograms 
Treaty".  
We strongly encourage Cape Verde to reconsider its position.  We would like to suggest that 
Cape Verde could modernize its Intellectual Property laws by not only ratifying the 
aforementioned Conventions, but also acced ing to the Geneva Phonograms Convention.  
Answer:  
Cape Verde thanks the Member for this statement and suggestion. Cape Verde will take under consideration the suggestion. 
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS  
- Copyright and related rights  Question 171 Paragraph 166 of the Draft Working Party Report states that "The representative of Cape 
Verde confirmed that in line with Article 10.1 of the TRIPS Agreement, computer programs were protected as literary works in Cape Verd e." Please explain how this statement can be 
reconciled with Article 26 of the draft revised Co pyright Act, which provides that the term of 
protection for computer programs will be 25 year s.  Under TRIPS Article 9(1) and the Berne 
Convention, literary works should have a life-plus-50-years term.   WT/ACC/CPV/23 
 Page 61 
 
 
 Answer:  
The confirmation by the Representative in paragraph 166 is correct vis-à-vis computer programs. Upon reviewing the draft Copyright Act, we noted the 25 year period set forth in Article 24 of the 
draft.  The listing of 25 years was an oversight and should have been 50 years. 
The correction will be made in the draft and the final version before approval. 
Question 172 Please explain how Article 50(h) of the dra ft revised Copyright Act, which provides an 
exception to copyright protection for, among ot her things, all reproductions for personal use, 
complies with TRIPS Article 13's requirement that  any exception to copyright be limited to 
"certain special cases which do not conflict with a normal exploitation of the work and do not 
unreasonably prejudice the legitimate interest s of the right holder." We are especially 
concerned that draft Article 50(h) does not require  that the work reproduced has been lawfully 
obtained by the person performing the reproduction.  
Answer:
 
Cape Verde assures Members that when a person does a reproduction of a work unlawfully obtained, 
this act may be considered as a crime of "reception" , defined in the penal c ode as "the acquisition of 
objects, products or other things unlawfully ob tained".  (Article 230 of the Penal Code.)  
Question 173 
According to Paragraph 166 of the draft working party report on the Accession of Cape Verde 
(document WT/ACC/SPEC/CPV/4), questions were raised regarding Cape Verde's new Copyright law and its consistency with TRIPS Articles 9, 10, 11, 13, and 14.2.  
We are still studying the new Copyright Law and plan to provide written comments.  
Answer:
 
Cape Verde thanks the Member and looks forward to written comments. 
- Trademarks, including service marks 
- Geographical indications, including appellations of origin  
Question 174 
Regarding the new draft law that was provided,  a concern exists regarding the relationship 
between trademarks and geographical indicati ons. It is important that a trademark/ 
geographical indication regime provide priority  and exclusivity for both trademarks and 
geographical indications, as well as providing parity of treatment between trademarks and 
geographical indications as required under TRIPS.  
How will Cape Verde's trademark and geogra phical indications provisions in its new 
intellectual property law comply with TRIPS Arti cles 16(1) and 24(5) of the TRIPS Agreement, 
preserving the rights of trademark owners? Specifically, it is unclear whether trademarks in WT/ACC/CPV/23 
Page 62  
 
 Cape Verde would be protected from confusin gly similar and later in time geographical 
indications.  
Answer:
 
The draft Industrial Property Code foresees the treatment of the trademarks and the geographic 
indications in equality of circumstances.  The ne w draft code foresees punishment for falsification of 
the marks and untoward use of the geographic i ndications.  It punishes likewise the imitation of 
trademarks and does not admit the existence of similar or look-alike marks that may lead the 
consumer into confusion, therefore protecting the mark that has the right to priority.  
- Requirements on undisclosed information, including trade secrets and test data  
Question 175 
As noted earlier, we are still reviewing Cape Verde's draft new Industrial Property Code.  It 
appears that trade secret protection is included in the draft code, but that specific protection for 
pharmaceutical and agricultural test data agains t unfair commercial use is not included in the 
draft.  Article 39.3 of TRIPS provides that "Members, when requiring, as a condition of approving the marketing of pharmaceutical or of  agricultural chemical products which utilize 
new chemical entities, the submission of undisclosed  test or other data, the origination of which 
involves a considerable effort, sha ll protect such data against unfa ir commercial use." The draft 
Cape Verde Industrial Property Code does not appe ar to fulfil this TRIPS requirement. It does 
not appear to protect against unfair commercial u se, but only against disclosure, since there is 
nothing in the draft about non-reliance by generics on the data submitted by an original drug applicant.  
Does Cape Verde permit the registration of gen eric products? If so, must the applicant for a 
generic drug approval provide the same data th at is required for an original product?  
Answer:
 
The new Industrial Property Code does not foresee this registration.  The pharmaceutical sector is 
being the object of a profound reform, including namely its liberalization. 
This issue shall be addressed by the Government, in due time, and the Government shall certainly 
make a decision more in agreement with the WTO principles. 
In the meantime, the draft law foresees,  in its Article 56, the following:  
When an invention has as object a preparation pro cess for a chemical, pharmaceutical or food product 
protected by a patent in effect, and whenever the pa tent of the process represents a notable technical 
progress as compared to the previous patent, both the owner of the process patent and the owner of the 
product patent have the right to require manda tory over the patent of the other owner. 
When the holder of a plant variety cannot obtain or  explore a plant acquisition right without infringing 
a prior patent, it may require a mandatory licence fo r the non-exclusive exploration of the invention 
protected by the patent, to the extent that this li cence is necessary to explore the same plant variety, 
against the payment of an adequate remuneration.  WT/ACC/CPV/23 
 Page 63 
 
 
 Question 176 
As noted earlier, we are still reviewing Cape Verde's draft new Industrial Property Code.  It 
appears that trade secret protection is included in the draft code, but that specific protection for 
pharmaceutical and agricultural test data agains t unfair commercial use is not included in the 
draft.  Article 39.3 of TRIPS provides that "Members, when requiring, as a condition of 
approving the marketing of pharmaceutical or of  agricultural chemical products which utilize 
new chemical entities, the submission of undisclosed  test or other data, the origination of which 
involves a considerable effort, sha ll protect such data against unfa ir commercial use." The draft 
Cape Verde Industrial Property Code does not a ppear to fulfill this TRIPS requirement.  It 
does not appear to protect against unfair commerci al use, but only against disclosure, since 
there is nothing in the draft about non-reliance by generics on the data submitted by an original 
drug applicant.  Or is the generic applican t permitted to provide an abbreviated drug 
application?  
Answer:  
See answer to Question No. 175. Question 177 As noted earlier, we are still reviewing Cape Verde's draft new Industrial Property Code.  It 
appears that trade secret protection is included in the draft code, but that specific protection for 
pharmaceutical and agricultural test data agains t unfair commercial use is not included in the 
draft.  Article 393 of TRIPS provides that "M embers, when requiring, as a condition of 
approving the marketing of pharmaceutical or of  agricultural chemical products which utilize 
new chemical entities, the submission of undisclosed  test or other data, the origination of which 
involves a considerable effort, shall protect such  data against unfair commercial use."  The 
draft Cape Verde Industrial Property Code does not appear to fulfill this TRIPS requirement. 
It does not appear to protect against unfair commer cial use, but only against disclosure, since 
there is nothing in the draft about non-reliance by generics on the data submitted by an original 
drug applicant.  
Is any time period provided after registratio n of an original product in which generic 
applications will not be considered?  
Answer:
 
See answer to Question No. 175. 
- ENFORCEMENT  
Question 178 
Under what authority can customs seize goods that infringe copyright?  
Answer:  
In the Draft Customs Law of Cape Verde, Chapter XI provides for border enforcement of intellectual 
property (including infringing copyrights) 
Articles 234 to 241 were drafted to be in confor mity with the TRIPS Agreement, specifically 
Section 4, Special Requirements Related to Border Measures. WT/ACC/CPV/23 
Page 64  
 
 Question 179 
Please indicate how fines or da mages are calculated in civil trademark and copyright cases.  
Answer:
 
Established by law in draft code indicating both  min and maximum depending on seriousness of the 
case. 
Question 180 Draft Revised Copyright Law (Law No. 101/III/90  of 27 December 1990), Article 101(1) only 
covers unauthorized reproduction. Please indicate whether there are civil or criminal penalties 
for violating any of the other rights set forth in Article 49.  
Answer:
 
Cape Verde confirms to that criminal responsibility for violating any of the other rights set forth in 
Article 49 is covered in Article 108 of the Draft Co pyright Law as violations to moral rights, in as 
much as the right to use the works listed under Article 49 are considered to be moral rights. 
Furthermore, civil responsibility would emerge at the same time for the infringement committed, 
depending on the extension of the damage caused. 
Question 181 In the Draft Revised Copyright Law (Law No. 101/III/90 of 27 December 1990), please state the 
meaning of "a fine of about double" in Article 102(1).  
Answer:
 
Cape Verde would like to inform the Untied States th at there was an error in the translation.  The 
sentence referred to in Article 102(1) should read as follows: 
"Recurrences are punished with double the corresponding fine" 
Question 182 
In the Draft Revised Copyright Law (Law No. 101/III/90 of 27 December 1990), Article 104, 
please provide the definition of "counterfeit work."  
Answer:  
Cape Verde informs Members that th ere was an error in the translati on.  The sentence in Article 104 
should read as follows: 
"The same punishment shall apply to those who import, sell or put for sale by any means of 
distribution to the public, a work fraudulently produced and or  published  in Cape Verde or 
abroad."  
Further, Paragraph 2 of Article 101 of the Dr aft Copyright Legislation addresses the notion of 
counterfeit work by stating   WT/ACC/CPV/23 
 Page 65 
 
 
 It is considered counterfeit all those who fraudulen tly present or utilize a creation of literary, artistic 
or scientific work, in part or in full. 
Question 183 
In the Draft Industrial Property Code of Cape Verde, Article 323, please state the meaning of 
"a fine of up to 360 days."  
Answer:  
The penalty is no longer an administrative penalty  today, in as much as in October 1995 a fine was 
instituted.  The penalty is therefore a penal penalty.  
VI. POLICIES AFFECTING TRADE IN SERVICES 
 - Legal Services 
Question 184 
We would like to know the following specific po ints regarding the supply of services by foreign 
lawyers on home-country law, intern ational law and third-country law: 
- specific requirements for foreign lawyers to provide these services; 
- scope of activities that are allowed for foreign lawyers; 
- possibility for foreign lawyers to associate with local lawyers, and 
- possibility for foreign lawy ers to employ local lawyers. 
We also would like to seek clarification on wh ether there is nationality requirement to be 
qualified as a lawyer on the law of Cape Verde 
Answer:  
Foreign lawyers may perform juridical consultancies on international law and the law of their country 
of nationality. 
Foreign lawyers may associate with local la wyers, and may employ local lawyers. 
In order to be a qualified lawyer on the law of Cape  Verde, the person must be a Cape Verde citizen 
or a citizen of the Portuguese speaking countries (CPLP), and resident in Cape Verde. 
 - Audiovisual Services 
Question 185 
We request Cape Verde to make commitment on  Sound recording services.  If there is any law 
regulating this sub-sector, it would like to  know the name and substance of the law. 
Answer:  
Cape Verde does not have a law regulating the s ound recording sector. However a policy decision is 
being made by the Council of Ministers.  The decision will be incorporated into the Services Schedule 
and available at the next Working Party Meeting. WT/ACC/CPV/23 
Page 66  
 
 Question 186 
MFN exemptions.  The version of 22 May includes MFN exemptions on audio-visual but they do 
not appear in the 1 June version.  Clarificatio n needed and confirmation of the exemptions. 
Answer:
 
A policy decision is being made by the Council of Mi nisters. The decision will be incorporated into 
the Services Schedule and available at  the next Working Party Meeting. 
 - Distribution Services 
Question 187 We request Cape Verde to include reference to CP C 61 (sales of automobiles) in its commitment 
on Wholesale trade services. 
Answer:
 
Cape Verde will take under consid eration the request to include reference to CPC 61 (sales of 
automobiles) in its commitmen t on wholesale trade services. 
Question 188 
We request Cape Verde to include reference to  appropriate CPC codes in its commitment on 
Retailing services. 
Answer:  
Cape Verde appreciates the comments and request to include reference to appropriate CPC Codes in 
its commitments on Retailing Services.  
There are many CPC Codes in the Retail Trade Se rvices (Division 63).  Therefore, Cape Verde 
requests this Member to specify the Retail Trade Se rvices sectors (preferably by CPC) code for which 
it has interest. 
Question 189 
We request Cape Verde to make commitment on  Franchising services.  If there is any law 
regulating this sub-sector, we would like to  know the name and substance of the law. 
Answer:  
Cape Verde thanks this Member for its comment.  Cape Verde does not have a law on franchising, 
and will take under consideration the request for a commitment on Franchising services. 
 - Maritime Transport Services 
Question 190 We appreciate the commitments made by Cape Verde on International maritime transport 
services.  Having said that, as CPC 745 (Suppo rting services for maritime transport) does not 
sufficiently reflect the commercial reality, we  recommend that Cape Verde should offer 
commitment on this subsector according to the attached Model Schedule on Maritime  WT/ACC/CPV/23 
 Page 67 
 
 
 Transport Services, which was prepared by a nu mber of Members and has been used as a tool 
for the negotiations on this sector. 
Answer:  
Cape Verde thanks this Member for its comment s and suggestions. Cape Verde will take the 
suggestion into considerati on and will review its own Service Schedule accordingly.  
 - Construction Services, Engineering Services and Integrated Engineering 
Services 
Question 191 We would like to know the specific requirement s for obtaining Membership in the Professional 
Associations, which is necessary to provide services in these sub-sectors.   In particular it is 
concerned if there is any discrimination between domestic and foreign service suppliers on this 
point. 
Answer:
 
Nationals and foreigners can be members of professional associations by meeting certain 
qualifications.  The major elements are a diploma from a University, and be a resident of Cape Verde. 
A foreigner who wants to engage in these activiti es on a temporary basis must also register as a 
temporary member of the association. 
 - Education Services 
Question 192 We would like to know the reason why the NT colu mn of this sector remains blank.  It also 
requests Cape Verde to make commitment on Other education services. 
Answer:
 
Cape Verde thanks this Member for its comments.  The omission of information on the NT column 
was not intentional the oversight will corrected in the Revised Service Schedule for the next Bilateral 
Negotiation.  
Cape Verde requests that this Member be more sp ecific as to what “Other Educational Services” it 
wishes Cape Verde to make a commitment on. 
 - Financial Services 
Question 193 Banking:  Cape Verde states in its Written An swers that it is unable to provide Mode 1 
commitments in sub-sector (k).  What is the reason for this? 
Answer:
 
A policy decision is being made by the Council of Mi nisters. The decision will be incorporated into 
the Services Schedule and available at the next Working Party Meeting.  WT/ACC/CPV/23 
Page 68  
 
 Question 194 
What is the position with regard to sub-sector (l)? - we would like to see Mode 1 commitments 
in the provision and transfer of financial information.  
Answer:
 
A policy decision is being made by the Council of Mi nisters. The decision will be incorporated into 
the Services Schedule and available at the next Working Party Meeting.  
Question 195 
In the revised offer circulated with track chang es (22 June) the joint venture requirement in the 
chapeau to the Financial Services sector is removed.  In the version of 1 June it appears in 
square brackets.  We would like clarification of what is intended and preferably the removal of 
this restriction. 
Answer:  
A policy decision is being made by the Council of Ministers.  The decision will be incorporated into 
the Services Schedule and available at  the next Working Party Meeting. 
Question 196 
While we appreciate the commitment that Cape Verde has newly made on MA of Mode 1 in the 
area of Reinsurance, it continues to request less restrictive commitments on Mode 1 of other 
sub-sectors. 
Answer:  
Cape Verde thanks this Member for its comment s on Financial Services, and will take into 
consideration the request for less restrictive commitments of Mode 1 of other sub sectors.  It would be 
helpful if this Member was more specific as to what other sub-sectors you request Cape Verde to 
make less restrictive commitments on. 
 - Tourism and Travel Related Services 
Question 197 Travel agencies and tour operators.  We would li ke to see improved commitments in this area 
where a number of limitations are scheduled. 
Answer:
 
A policy decision is being made by the Council of Mi nisters. The decision will be incorporated into 
the Services Schedule and available at  the next Working Party Meeting.  WT/ACC/CPV/23 
 Page 69 
 
 
  - Recreational, Cultural and Sporting Services 
Question 198 Would Cape Verde consider taking commitments in  News Agency services and some additional 
commitments in transport, notably (a) Services Au xiliary to all modes of transport (b) storage 
and warehousing and (c) freight transport agency services? 
Answer:
 
A policy decision is being made by the Council of Mi nisters. The decision will be incorporated into 
the Services Schedule and available at  the next Working Party Meeting. 
VII. TRANSPARENCY  
Question 199 
Paragraph 205: We applaud Cape Verde's interest  in expanding the scope of its transparency 
institutions, i.e., to make the Official Bulleti n available electronically. We would appreciate an 
update on the fees Cape Verde intends to charge fo r this service. Does Ca pe Verde charge set a 
price for the acquisition of a copy of the Official Gazette?  
Answer:  
Subscription prices for copies of th e Official Bulletin are as follows: 
 I Series CVE 5,000 (Annually) 
 II Series CVE 3,500 (Annually)  III Series CVE 3,000 (Annually) 
A single copy of an Official Bulletin is sold at the price of CVE 10 per page. The fee structure for users seeking access to the proposed website of the Official Bulletin has not, as 
yet, been established.  
Question 200 
We reiterate our proposal that Cape Verde consider making such electronic availability the 
basis for a regulatory review mechanism that in cludes publication for prior comment. This will 
address transparency requirements  in the areas of TBT and SPS, and provide Cape Verde with 
a valuable tool for good rule making.  
Answer:
 
Cape Verde appreciates the comments and proposal of the Members.  Cape Verde is working hard to 
make the electronic system available as soon as possi ble.  We agree that the electronic system will 
significantly improve transparency requirements in the areas of TBT and SPS, and provide a valuable 
tool for good rules making. 
 
__________