RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CPV/19 
13 June 2005 
 (05-2470) 
Working Party on the 
Accession of Cape Verde Original:   English 
 
 
  
ACCESSION OF CAPE VERDE 
 
Additional Questions and Replies
 
 
  The following submission, dated 26 May 2005, is  being circulated at the request of the 
Delegation of the Republic of Cape Verde. 
_______________ WT/ACC/CPV/19 
 Page i 
 
 
 TABLE OF CONTENTS 
 
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......2  
- State Ownership and Privatization .........................................................................................3  
- Pricing Policies ............................................................................................................... ...........4  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................5  
- Trading Rights ................................................................................................................. .........5  
A. IMPORT REGULATIONS......................................................................................................6  
- Ordinary cust oms duties ........................................................................................................ ..6 
- Other duties and charges....................................................................................................... ...7 
- Fees and taxes for se rvices rendered.......................................................................................7  
- Application of internal  taxes to imports .................................................................................8  
- Tariff rate quotas, tariff exemptions.......................................................................................9  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ ...............9  
- Customs valuation.............................................................................................................. .....10  
- Rules of origin ................................................................................................................ .........11  
B. EXPORT REGULATIONS ...................................................................................................11  
- Export subsidies ............................................................................................................... .......11  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................11  
- Industrial policy, including subsidies....................................................................................11  
- Technical barriers to trade .................................................................................................... 12 
- Sanitary and phytosanitary measures...................................................................................12  
- State-trading entities......................................................................................................... ......12  
- Free zones, special economic areas........................................................................................13  
- Agricultural policies.......................................................................................................... ......13  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................14  
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................14   WT/ACC/CPV/19 
 Page 1 
 
 
 INTRODUCTORY STATEMENTS 
Question 1  We understand that there have been some developments with respect to the status of 
Cape Verde and we suggest that Cape Verde has a closer look at the statements regarding LDC 
status in paragraph 5 of the Factual Summary.  
Answer
: 
The situation on 26 March 2004 and even on 8 Dece mber 2004 when the Ministerial statements had 
been made was as it is reported in paragraph 5 of the factual summary. 
In fact, during its 59th session, upon Economic and Social Council report, United Nations General 
Assembly issued and distributed on 10  December 2004 the following Resolutions: 
- A/RES/59/209 on Smooth transition strategy fo r countries graduating from the list of least 
developed countries; and 
- A/RES/59/210 where it "Takes note of the recommendation of  the Committee for 
Development Policy to graduate Cape Verde a nd Maldives from the group of least developed 
countries." 
The "Factual Summary on the accession of Cape Verd e" drafted by the WTO Secretariat was received 
on 30 September 2004.  It was circulated on 26 Octo ber 2004 after having been revised and forwarded 
back to WTO.  Before 10 December 2004 tho se resolutions was not effective or adopted. 
Meanwhile, the Government of Cape Verde takes no te of the above comments and copies of the two 
resolutions above mentioned are available for consultation in document WT/ACC/CPV/20/Add.1. 
II. ECONOMIC POLICIES 
- Foreign Exchange and Payments 
Question 2  As regards paragraph 16 and 17 of the Factual Summary, could Cape Verde explain the reasons 
for requiring BCV authorization for 1) obta ining 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; 3) for transfer s exceeding CVE 5,000,000 as payment for goods 
and services. 
Answer
: 
Bank of Cape Verde authorization is not necessary for any of these operations.   The operations or 
transactions in goods and in invisible currents are free, except in the following cases that require 
authorization only in sense of prior verification by the Bank of Cape Verde: 
a) transfer of invisible exports of an amount greater then CVE 1,000,000, included under 
heading "private unilateral transfers";  
b) transfer of an amount greater then CVE 5, 000,000 for payment of services rendered or as 
revenues, except in case of interests relating to loans or credits agreed upon and previously 
authorized;  
c) transfer for final payments or pre-payments  for current transactions when the anticipated 
instalment is longer then three months in re lation to the agreed dates for the purveying of WT/ACC/CPV/19 
Page 2  
 
 goods or services and its amount exceeds CVE 1,000,000 and represents more than 
35 per cent of the contractual value. 
In the case of capital operations, except for those ope rations carried out through the Stock Exchange 
or through duly authorized brokers, there is need for prior authorization by the Bank of Cape Verde. 
For more information on this matter, please consult Notice No. 4/98 from the Bank of Cape Verde, 
O.B. No. 47 of 21 December 1998 through document WT/ACC/CPV/20/Add.1.  In this notice, there 
is a list of the operations that are considered invi sible currents and those that are considered capital 
operations. 
To clarify the statement made in the answer to Question 4 of document WT/ACC/CPV/15 the 
Government of Cape Verde informs that there is a bilateral agreement on credits and payment 
between Cape Verde and Cuba which has been sev eral times extended and is contested by IMF. 
In paragraph 16 of the factual summary (Job No.717 2) is missing the negative particle between the 
words "was" and "required".  The phrase should st art: "However, Bank of Cape Verde authorization 
was not necessary…". 
Please, refer also to answer given to Question 14 and 15 of WT/ACC/CPV/20. - Investment Regime Question 3  Could Cape Verde explain in more detail what ki nd of investment promotion incentives it has in 
place?  
What limitations are there in the domestic laws and regulations to foreign investment? 
Answer
: 
There are specific incentives provided for under speci fic laws and regulations, such as tourism, 
industry, exportation and re-exporta tion, financial institutions, and investment in general: these laws 
and regulations have in common th e similarity of such provisions as customs duties and other fiscal 
exemptions, transfer of funds facility and fiscal and banking facilities for shareholders.  
External investor is any person, physical or mo ral, national or foreigner, which accomplishes an 
external investment when duly au thorized according to the law.  Economic activities developed with 
external investment follow the legal figure and re gime provided for under the relating laws into force 
for each sectors of activity, namely as regards to  the conditions of access and performance as well as 
to the incentives involved.  The Republic of Cape Ve rde assures (a) fair and e quitable treatment to the 
external investor and to the enterprises with ex ternal investment participation, (b) safety and 
protection to their estates and rights which can not be nationalized nor expropr iated.  If expropriation 
is required by public utility due compensation has to be paid.  
There are no limitations in the domestic laws and re gulations to foreign investment as such.  But the 
incentives are not applied:  
a) to the external investments on economic ac tivities mainly directed towards the internal 
market; and 
b) to the external investments in the financial sector which is covered by specific legislation.   WT/ACC/CPV/19 
 Page 3 
 
 
 For more details, please find listed below, laws a nd regulations on exporta tions and re-exportation, 
tourism, industry, financial institu tions and investment in general. 
For better understanding, there are attached at the end copies of:  (1) Decree Law No. 18/93 – 
Banking Institutions; (2) Regulatory Decree No. 11/ 93 – Investment Companies; (3) Regulating 
Decree No. 1/94 – Regulating investments; (4 ) Decree Law No. 72/95 – Telecommunications 
Services; (5) Decree Law No. 66/97 – Regulatin g financial institutions; (6) Law No. 43/III/88 
amended by Law No. 32/V/97 and to  be amended this year – Inte rnational Financial Institutions; 
(7) Law No. 89/IV/93 – External Investment; (8) Law No. 92/IV/93 – Incentives to exports and re-
exports; (9) Law No. 55/VI/2005 – Touristy Utility. 
- State Ownership and Privatization 
Question 4  
Please explain the area of activity of each of the four state owned enterprises TACV, ENAPOR, 
EMPROFAC and CABENAVE.  Indicate also wheth er there are other enterprises active in the 
same sectors.  
Answer : 
ENAPOR develops its activity in the domains of Port Administration, Port Operations and Port 
Authority and: 
- provides all the port services in this sector, such as stowage, de-stowage, warehousing, 
security of goods, delivery, space and equipment rental; 
- provides ships mooring (i.e. bringing alongside) and de-mooring, assistance in mooring and 
towing in high-seas; 
- supports the Government in the development of  the policies in the port activity sector, in the 
expansion and modernization of the infrastruct ures and in the reorganization of the space in 
the port area; and 
- develops and presents proposals to revise and de fine the tariffs, for approval by the General 
Assembly. 
TACV, SA: Cape Verde's Air Transportation Compan y, whose object is the exploration of public 
transportation services by air, of passengers, cargo and mail and to execute commercial and directly or 
indirectly industry related operati ons in the referred exploration. 
CABNAVE, SARL :  are located in the bay of the Port  of Mindelo, S. Vicente.  The repair docks were 
conceived in 1982 and it began opera tions in 1983 with the intent to  provide repair services to small 
and medium size ships transiting in the North-South Atlantic waters.  The docks are perfectly adapted 
to work on steel and treatment of the ships' hulls .  The operations of the CABNAVE installations are 
carried out by a publicly owned company and a capital stock company, and have the following structure: 
- CABMAR (Publicly owned company) – whose functions are:  a) "Leasing" company that facilitates institutional investment; and 
 b) Owner of the installation and of most of the equipment. 
- CAVNAVE (SARL) – that has as functions on:  a) Operation of the docks; 
 b) Management of the docks; and WT/ACC/CPV/19 
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  c) Investment in capital. 
Up to now, there are no other enterprises active in  the above mentioned activities, but these entities 
are in the early stages of privatization. 
- Pricing Policies 
Question 5  
Does Cape Verde have, or is it planning to introd uce, price controls on services? If so, to which 
ones? 
Answer
: 
Please note that answers to similar questions have been given in WT/ACC/CPV/7, WT/ACC/CPV/8 
and WT/ACC/CPV/15.  Copies of the Decree Law No. 52/2003 (O.B., I Series, No. 39, of  
24 November 2003) and related ordinances all transl ated into English had been forwarded to WTO, 
(see document WT/ACC/CPV/15/Add.1.   Amendments made later on regards the price level as stated 
in the answer given to other questions above mentioned. 
Prices are administered by autonomous regulatory entities.  There are the following price regi mes into force under the provisions of Ministerial Ordinance 
No. 2/2004, published in the O.B. No. 1, I Series, of 19 January 2004:  
1.  Fixed prices:  a) maritime cabotage services; 
 b) Water supply;  c) electric power supply; and  d) fuel supply. 
2.  Maximum prices: 
 a) wheat flour; 
 b) bread;  c) corn;  d) rice; 
 e) sugar; and 
 f) taxi (with taximeters) services. 
3.  Negotiated prices:  a) processed tobacco; 
 b) private health care services;  c) medicaments and other products for health care; 
 d) communication services; and 
 e) collective transportation services. 
In the near future the Government of Cape Ve rde does not intend to implement any other similar 
measure. 
Pricing policies are also referred to in Question 1 of WT/ACC/CPV/7, Question 2 of 
WT/ACC/CPV/15 and paragraphs 25 and 26 of the Factual Summary (Job 7172, Non paper No. 1).  WT/ACC/CPV/19 
 Page 5 
 
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 6  Could Cape Verde explain what "the power to monitor and regulate the registration (…)" in 
paragraph 39 of the Factual Summary consists of?  
Answer
: 
The Government of Cape Verde is reconsidering its legislation on this procedure within the Ministry 
of Economy, Growth and Competitiveness.  However,  it should be underlined that the registry of 
firms with the Conservatory of Commercial registrati on is monitored by the Ministry of Justice.  The 
registration as commercial operator is monitore d by the Ministry of Economy, Growth and 
Competitiveness now and in future it is expected to be the same.     
Question 7  
What are the regulatory purposes of requiri ng registration by locally established 
companies/branches/representative offices fo r any import or export operation?  
Answer : 
The Government of Cape Verde needs to be aware of what companies are doing and if their activities 
are legal or not.  
Question 8  
What is the reason and justification for the 30 days period for processing the registration? 
Answer : 
In Cape Verde there is no fixed period for granting th e registration.  However, if within 30 days, the 
petitioner do not have any official reaction it can be a ssumed that the answer is affirmative (No. 2 of 
Article 40 of Decree Law No. 50/2003 of 24 Novemb er 2003).  Please note that, as referred before, 
the actual procedure is under reconsideration. 
Question 9  
As regards paragraph 44 of the Factual Summary, could Cape Verde explain in more detail the 
method used for fixing the fees on the basis of th e cost of service provided, indicating the actual 
cost of services provided. 
Answer : 
The fees referred to in paragraph 44 of the fact ual summary dated 25 Oct ober 2005 (Job No.7172) 
were established in 1986.  Please note that, as referred before, the actual procedure is under 
reconsideration. WT/ACC/CPV/19 
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 A. IMPORT REGULATIONS 
- Ordinary customs duties  Customs tariff Question 10  We are not happy with the offer on goods (b oth industrial and agricultural) and invite 
Cape Verde to reconsider its offer looking at  comparable countries acceding to the WTO. 
Answer
: 
The Government of Cape Verde is reconsidering its  offer on goods (both industrial and agricultural), 
taking into account comments and suggestions ma de by Members during the second Working Party, 
but anticipates that the Members would be flexible enough in helping Cape Verde's Public Treasury to 
avoid or get through budgetary difficulties, if any, after accession.  
A revised Tariff Offer will be ready soon, and surely  prior to a late spring Working Party Meeting. 
Question 11  
As regards paragraph 48 of the Factual Summary , could Cape Verde specify if and when the 
Tariff Nomenclature HS 2002 will be implemented. 
Answer : 
The Tariff Nomenclature HS 2002 will be impl emented according to the ECOWAS Roadmap 
(see document WT/ACC/CPV/20/Add.1). 
Question 12  
As regards Table 3 (paragraph 50) of the Factual Summary, could Cape Verde explain the 
regulatory purpose and necessity of the items listed in Table 3. 
Answer : 
The phrase "Import duties constituted approximately 50 per cent of the taxes collected at the border in 
2002 and early 2003 (see Table 3)" is part of paragr aph 49 of the Factual Summary.  The table shows 
the amount and the weight of each item of the revenue perceived by the Cape Verde's Customs Administration in 2002 and during the three months of 2003.  They were into force on 1 July 2003 
when the document WT/ACC/CPV/3 was circulated .  Some of the fees dated back from 1942.  
Excepting the Customs duties they are now revoked. 
Effective from 1 January 2004, as stated namely in the Factual Summary - paragraphs 53, 55, 58 - a 
major tax reform has been introduced to simplif y the tax structure through the introduction of the 
value added tax (VAT).  With VAT there are Sp ecial Consumption Tax, Environmental Tax and 
Community Levy and, of course, Customs Duties.   WT/ACC/CPV/19 
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 - Other duties and charges 
- Fees and taxes for services rendered Question 13  Could Cape Verde explain in detail the basis of imposition and the functioning of the system 
relating to General Customs fees and Consumption tax? 
Answer
: 
As said in the answer to Question 12 above all the f ees listed in Table 3 referred to in paragraph 49 of  
the factual summary, including General Custom s fees and Consumption tax are revoked.  
The answer to Question 53 of document WT/ACC/ CPV/15 reads "The Government of Cape Verde 
confirms that the Consumption Tax (not Sp ecial Consumption Tax) was eliminated on 
1 January 2004, when the Value Added Tax became effective". 
General Customs' fees and Genera l Emolument Tax are the same: the translation was not harmonized.  
The answer to Question 53 of document WT/ACC/CP V/15 reads: "The Government of Cape Verde 
confirms that new Law relating to the 15 per cen t VAT, in force from January 2004, eliminated all 
internal taxes on imports, with the exception of the special tax on consumption.  The Government of 
Cape Verde confirms that the General Emolument Tax of 9 per cent on imports was eliminated on 
1 January 2004 when the VAT became effective." 
Law No. 48/VI/2004 of 26 July 2004 sent with the factual summary regulates the Special 
Consumption Tax, modifies some customs duties and VAT exemptions. 
Question 14  
As regards paragraph 52 of the Factual Summa ry, could Cape Verde provide more details on 
the Community levy of 0.5 per cent to non-ECOWAS imports to raise revenue for ECOWAS 
Institutions and on the Environmental Tax to support environmental projects? 
Answer : 
The principle of financial autonomy for ECOWAS is enshrined in Article 72 of the revised Treaty 
instituting a Community levy to provide intern ally-generated funds for prosecuting Community 
activities.  The levy is a 0.5 per cent tax on all imports from non-ECOWAS countries.  The conditions 
of its application are included in the Protocol  (A/P.1/7/96) which was approved by Resolution 
No. 67/V/97, of 31 December 1997, published in the Supplement to the Official Bulletin No. 50, I Series, of 31 December 1997.  Protocol A/P.1/96  is available for consultation through document 
WT/ACC/CPV/20/Add.1. 
The Environmental Tax, initially created by Law No. 128/IV/95, of 27 July  1995, was revoked with 
effect from 1 January 2004 by Law No. 14/VI/2002 of 19 September 2002, published in the Second 
Supplement of Official Bulletin No. 28, I Series of 19 September 2002.  It was subsequently reintroduced by Law No. 46/VI/2004, of 12 July 2004, Official Bulletin No. 20 – I Series.  It applies to non-biodegradable wrappers, of metal, of glass or of synthetic or artificial plastic – and is applied 
both to importation and to national production.  The revenue resulting from the collection of the 
ecology tax goes to municipalities for use in basi c sanitation and environmental protection.  The 
Government of Cape Verde intends to introduce in  the National Assembly a proposal for the revision 
of Law No. 46/VI/2004.  WT/ACC/CPV/19 
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 Question 15  
Could Cape Verde also clarify whether there is any difference of treatment for those taxes 
(ECOWAS and Environmental tax) between do mestic products and imported products. 
Answer
: 
Please, consult answer to Question 14 above.  
Community Levy applies only to imports from non-ECOWAS Countries.  
Environmental tax will meet "national treatment" principle.  
Question 16  
As regards paragraph 54 of the Factual Summary, could Cape Verde communicate 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 : 
Please consult the study on the customs user's  fee of 1.04 per cent of the CIF-value.  
- Application of internal taxes to imports  
Question 17  
As regards paragraph 59 of the Factual Summary , VAT exemptions: could Cape Verde explain 
which additional domestic operations are exempted from VAT?  
Answer : 
Tables 5(a) and 5(b) indicated exemptions.  E xhaustive information was provided in: the Laws 
No. 21/VI/2003 and 23/VI/2003 and the Decree Law No. 22/2003, all of them of 14 July 2003 and published in the O. B. No. 21, I Series of 2003; the amendments made through Law No. 48/VI/2004 
of 26 July 2004, published in the O. B. No. 22, I Series of  2004. 
Question 18  
What are the conditions to apply for an exemption?  
Answer
: 
Exemptions are not automatic.  However, all eligible  juridical persons have to do is fill the form 
attached to the Decree Law No. 22/2003 referre d to in the answer to Question 17 above. 
Question 19  
How can foreigners apply for a VAT exemptions?  
Answer : 
The law and regulations VAT applies to all juridi cal persons in their full juridical capacity.  The 
procedure is indicated in the answer to Question 18 above.  WT/ACC/CPV/19 
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 - Tariff rate quotas, tariff exemptions 
Question 20  Can Cape Verde explain whether it applies tari ff exemptions? If so, could Cape Verde explain 
the details of the system applied? 
Answer
: 
VAT exemptions are already explained.  Applica tions for customs duties exemptions are dependant 
on the status of the applicant: 
- Embassies, diplomats, International Missions, Consulates, Consuls and Consular officials 
have their own regime under inte rnational conventions on that; 
- Industrial enterprises and industrial projects have to  be registered with the Industrial registry 
record in the Department responsible for indus try and applications for exemptions shall be 
addressed to Directorate General of Cu stoms which can delegate its power; 
- Touristy enterprises have to be previously recognized as of a touristy utility by joint decision 
of members of the Government of Cape Ve rde responsible for Tourism and Finance and 
application for exemptions shall be addr essed to the Directorate of Customs; and 
- Projects of development benefits from exempti ons in accordance with the agreement reached. 
- Quantitative import restrictions, including prohibitions, quotas and licensing systems  
Question 21  Could Cape Verde clarify what are the trade rest rictions for precious metals and stones and for 
tobacco?  
Answer
: 
i) Precious Metals (gold): The gold referred to  in Decree-Law No. 50/2003, of 24 November, 
refers to monetary gold or gold bullion for reserves in the Central Bank to cover currency 
availability to the outside.  There no legislation that regulates trade in gold. 
ii) Precious Stones (diamonds): Decree-Law No 47/ 2004, of 15 November regulates the trade in 
diamonds.  The importation and exportation of raw diamonds can only be done from and to 
countries that participate in the Kimberly Process Certification System. 
iii) Tobacco: The importation and wholesale of tob acco is exclusively done by a private company 
the Cape-Verde's Tobacco Company (Sociedade  Cabo-verdiana de Tabaco - SCT) according 
to establishment convention signed between the Government and that Company (Dispatch in 
the Official Bulletin No. 20, II Series of 20 May 1997)  
Please refer also to answers to Questions 76, 77, 116 and 117 of document WT/ACC/CPV/20. Question 22  As regards paragraph 63 of the Factual Summa ry, could Cape Verde clarify whether all 
products imported into Cape Verde are subj ect to non-automatic import licenses since 
26 January 2004? WT/ACC/CPV/19 
Page 10  
 
 Answer
: 
The Government of Cape Verde is revising its licensi ng procedures.  A copy of the drafted legal text 
of 26 January 2004 is available thro ugh the WTO Secretariat (see document 
WT/ACC/CPV/15/Add.1). 
- Customs valuation 
Question 23  
We note Cape Verde's request for a transitional  period until 2009 for the full implementation of 
the Customs Valuation Agreement.  We woul d have different expectations and reserve our 
position to come back on this issue.  Could Cape Verde provide a detailed explanation of the 
need and justification for such request?  
Answer : 
Cape Verde requested a five-year transition peri od for the implementation of the on Customs Value 
Agreement on the  –following ground: 
Approximately 50 per cent of the General State B udget depends on customs revenues collected by the 
customs services.  In as much as the " ad-valorem " customs duties and the VAT tax apply to the 
customs value of imported goods, any variation in th e currency (lower exchange rate or any other) 
cause a two-way reduction in the customs revenue, either because the good's value was lowered or 
because the currency was devalued.  There is the prob lem of fraud in customs value committed by the 
commercial operators by means of sub-invoicing the imported goods, which, for the same reason, 
reduces the customs revenues. 
The Cape-Verdian customs do not dispose of any ser vice nor are there any institutions that rigorously 
occupy themselves with the oversight of the va lues and the prices of goods.  To that end it is 
indispensable to create and to put in place a stru cture and endow it with pe rsonnel, equipment and a 
database with the values and prices of goods from di fferent origins; train the customs personnel in the 
modern practices to combat fraud, in post-clearance  auditing, risk evaluation, investigations and 
organization and performance of inquiries, files a nd records, audits to the importing and producing 
companies, analysis of the respective accounting.  To do all that, the customs services need not only 
time but also financial conditions and knowledge, without which it cannot implement the cited GATT 
Agreement on value.  Without a capable structure in which it can support itself, when there is sub-
invoicing or any other type of fraud over the value, the customs cannot challenge the values declared by the economic operators, which shall have as immediate conse quence a reduction in the customs 
revenues.  The necessary Technical Assistance was solicited. 
Question 24  We would be happy if Cape Verde could provi de the new draft Customs Code as soon as 
available. 
Answer
: 
The draft of the Customs Code was made availa ble to WTO members through the WTO Secretariat 
(see document WT/ACC/CPV/18).  WT/ACC/CPV/19 
 Page 11 
 
 
 - Rules of origin 
Question 25  We would appreciate to have the position of Cape Verde on whether it would consider the 
European Community as one entity for origin purposes. 
Answer
: 
The Government of Cape Verde will analyze its position within the ECOWAS regional integration 
and make its position known to WTO members. 
B. EXPORT REGULATIONS 
- Export subsidies Question 26  
As regards paragraphs 85 and 86 of the Fa ctual Summary, could Cape Verde clarify its 
situation as regards duty drawback schemes.  On the one hand it is stated that there are no longer duty drawback schemes but on the other there is also a statement that duty drawback scheme is consistent with WTO. 
Answer
: 
Decree Law No. 32115 of 7 July 1942 is almost abrogated by disuse. Law No. 92/IV/93 of 
15 December 1993 and Decree Law No. 108/89 are used in the industrial production for exports.  The 
Government of Cape Verde will conduct a st udy on incentives provided to enterprises and 
investments.  With the assistance of IMF a stud y was undertaken but more assistance is needed. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 27  
Could Cape Verde explain in more detail the cont ents of the incentive schemes referred to in 
paragraphs 90 and 91 of the Factual Summary? 
Answer : 
i) The regime of incentives to fo reign investment has a customs and a fiscal character.  For the 
tourism and industry sectors, the customs exemp tions apply to the importation of equipment 
and raw materials during a specific period, means of collective transportation for the workers, 
cargo material, in the acquisition of fuels (ex cept gasoline) for the production of electrical 
energy and desalinated water for c onsumption within the establishments. 
 The fiscal exemptions apply to the Tax on revenue (IUR) during a specific period. 
Application for VAT exemptions is made by filling the form attached to the Decree Law 
No. 22/2003 of 14 July 2003. 
 There are other types of incentives connected w ith moving industries in the national territory 
(incentive to decentralization), the acquisition of land for construction of the installations, WT/ACC/CPV/19 
Page 12  
 
 incentives connected with reinvestment, professi onal training of the workers, technological 
innovation and industrial innovation, etc. 
ii) There are no limitations, save for the cases wher e there is a clear disrespect for public 
morality and national security and of production of armament.   Foreign investors are treated the same as national investors. 
 Aside from this, one of the incentives considered  by the Administration is the fact that the 
industrialist will be automatically inscribed (registered) as an importer for the classes of 
goods destined for its operation, without the need  to go through the process of registering as 
an importer. 
 Please refer also to answer to Question 4 above. - Technical barriers to trade - Sanitary and phytosanitary measures Question 28  We would like to invite Cape Verde to be more precise and to explain in more detail the actions 
it intends to take for putting TBT a nd SPS WTO requirements into place.  
Answer
: 
Focal point for TBT and SPS is:  Ministry of Economy, Growth and Competitiveness,  
 Ave. Amilcar Cabral   Praia,  Republic of Cape Verde.  
 Telephone: (238) 260 76 11, (238) 260 76 12, 
 Fax:  (238) 261 72 99  Email:   alcidiaa@gov1.gov.cv 
A TBT and SPS Action Plan were drafted and assi stance was requested.  The Government received 
assistance for the preparation of a revised SPS action plan and an assessment of the actual needs for 
further assistance.  Concerning TBT no offer was received. 
- State-trading entities 
Question 29  We would like to express our interest in discu ssing further and clarifying the pharmaceutical 
monopoly (EMPROFAC) referred to in this section. 
Answer
: 
The Government of Cape Verde is not agains t discussion for further clarification of the 
pharmaceutical monopoly (EMPROFAC).  However it must  be underlined that EMPROFAC is in the 
process of privatization.  WT/ACC/CPV/19 
 Page 13 
 
 
 - Free zones, special economic areas 
Question 30  We would like to express our interest in discuss ing this section further.  The statement in 
paragraph 108 of the Factual Summary (as LD C complying with ASCM) does not fully meet 
our expectations.  
Answer
: 
A Member has asked the Government  of Cape Verde to reconsider the matter and undertake a study in 
view to make all incentives consistent w ith GATT.  The suggestion was accepted. 
- Agricultural policies 
Question 31  
Could Cape Verde provide its actual applied rates for agricultural products? Answer
: 
A Customs Tariff will be provided to Working Party Members. 
Question 32  
Could Cape Verde provide the average rate of it s imports imported applying the current offer? 
Answer : 
Yes. The document will be forwarded through WTO Secretariat.  
Question 33  
It is noted that the rate for beer (IBR 90 p er cent and FBR 80 per cent) appears excessive, in 
particular compared with the rates of other produc ts.  We reserve our position to come back on 
this issue at a later stage. 
Answer : 
The Government of Cape Verde is open for discussion on that. 
Question 34  
Could Cape Verde clarify the amount of governme nt expenditure for the support of agriculture 
(the factual summary indicates the amount of CVE 800 million, whereas the tables in document 
WT/ACC/SPEC/CPV/1 indicate a maximum of CVE 560 million)?  
Answer : 
When the Government of Cape Verde wrote its Memorandum on Foreign Trad e Regime it was not 
referring to the amount of CVE 800 million as requi red under Domestic Support  and Export Subsidies 
in the Agricultural Sector where the amount indicated is CVE 560 million.  The correct amount is then CVE 560 million. WT/ACC/CPV/19 
Page 14  
 
 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 35  We welcome Cape Verde's intentions to be in  conformity with the provisions of TRIPS by 
December 2006. 
Answer
: 
Modern legislation in the matter of industrial pr operty that contemplates the industrial property 
aspects connected to trade is being worked on and shall be the object of approval and publication very 
soon. 
A copy of the Draft of such legislation has been  forwarded to the WTO Secretariat (see document 
WT/ACC/CPV/18). 
VI. POLICIES AFFECTING TRADE IN SERVICES  Question 36  Concerning the Horizontal Commitments (Mode 3)  of the services offer, this law sets out 
general conditions for foreign investment and co ntains certain authorization requirements.  In 
many ways it appears to encourage investme nt but there also certain restrictions.  Could 
Cape Verde clearly identify the restrictions a nd set them out in the schedule, preferably under 
the relevant sectoral headings?   
Answer
: 
The authorization requirements mean that any invest or can not seek to invest in Cape Verde without 
due regard to the conditions for investme nt as established under Law No. 89/IV/93 of 
13 December 1993, Regulatory Decree No. 1/94 of 3 January 1994 or other laws relating to each 
sector, which was sent to WTO Secretariat and menti oned in the questions previously answered.  For 
detailed information, please, consult also Law No . 55/VI/2005 of 10 January 2005 on Touristy Utility 
Statute, Decree Law No 108/89 of 30 December 1989 on Industrial Statute, Law No. 92/IV/93 of 15 December 1993 on incentives to exports and re-exports, Law No. 43/III/88 of 27 December 1988 
as amended by Law No 32/V/97 of de 30 June 199 7 and a future expected amendment on financial 
services, and Decree Law No. 66/97 of 3 November 1997 regulating financial services. 
Question 37  
In addition to services salespersons we wo uld be happy to see a Horizontal Commitment 
(Mode 4) to persons responsible for setting  up a commercial presence (both are types of 
Business Visitor). 
Answer
: 
The services schedule has been revised to include such a commitment.  
Question 38  
Cape Verde Telecom has a monopoly for fixed line domestic and international voice and data 
services until 2021.  This timescale appears excessi vely long and we reserve our position to come 
back on this issue at a later stage.  WT/ACC/CPV/19 
 Page 15 
 
 
 Answer : 
The Government of Cape Verde is making every effo rt to renegotiate the concession contract as soon 
as possible.  The revised offer contains the following commitment: 
- Cape Verde will provide unlimited market acc ess for any service initially covered by the 
monopoly immediately upon termination of monopoly rights for that service if termination 
occurs prior to 27 November 2021. 
Question 39  
Could Cape Verde explain what is covered by "d ata services" (e.g. does it include internet video 
transmission)?  
Answer : 
Since Cape Verde's commitments are scheduled in  accordance with the "Notes for Scheduling Basic 
Telecom Services Commitments (S/GBT/W/2/Rev. 1), they are technology neutral.  As such, the 
commitments include the transmission of data services through any technological means, including internet protocol. 
Question 40  
Could Cape Verde provide information on  the regulatory system for telecom? 
Answer
: 
The regulatory system for telecommunications in Cape  Verde is separated in two major areas.  For 
Economic regulation, there is a multi-sector Regulat ory Body and for technical regulation, there is 
another Regulatory Body. 
The procedures for both regulatory bodies are independent from the Government Administrative 
procedures.  
Both Regulatory Bodies have a Council in their decision-making structures with representatives from 
related sectors. 
Question 41  
We would like to draw Cape Verde's attention to  the fact that commitments in audio-visual 
services, without an MFN exemption, would mean th at they could not take part in regional or 
plurilateral funds to promote the film industry;  they could not impose content requirements on 
television in favour of local or African producti ons; and they could not develop preferential co-
production agreements with other countries 
Answer : 
The Government of Cape Verde's appreciates this information but believes that it can take advantage 
of arrangements under bilateral and regional trade arrangements, such as ECOWAS, African Union, 
etc. to promote its indigenous film industry. WT/ACC/CPV/19 
Page 16  
 
 Question 42  
Under "Other Business Services", sub-heading "j " does not normally cover energy production, 
which is outside the scope of the GATS.  We would suggest that Cape Verde deletes this commitment from the schedule. 
Answer
: 
This commitment has been deleted from the schedule, as suggested. 
Question 43  
For "Business Services", the chapeau beginning "Professionals must be affiliated…." refers to 
domestic regulation so is not relevant and we suggest it to be deleted. 
Answer : 
This reference has been deleted from the schedule, as requested. 
Question 44  
For "Business Services", could Cape Verde ex plain what are the joint venture requirements 
under (g) urban planning? 
Answer : 
The requirement has been removed from the schedule. 
Question 45  
Could Cape Verde explain what are the au thorization requirements under Research and 
Development? 
Answer : 
The authorization requirements have been removed from the schedule. Question 46  Could Cape Verde specify the authorizat ion requirements for courier services? 
Answer
: 
Courier service is offered in Cape Verde based on "Decree-Law No. 5/94.  Specific authorization 
requirements for courier service in Ca pe Verde will be published in 2005. 
Question 47  Under "Construction Services", we would be  happy to see sub-sectors III.E (CPC 511+515+518 
of MTN.GTS/W/120) to be added to complete the sectoral coverage. 
Answer
: 
The sub-sectors have been added, as requested.  WT/ACC/CPV/19 
 Page 17 
 
 
 Question 48  
For "Construction Services", could Cape Verde explain what are the joint venture 
requirements? 
Answer : 
The requirement for foreign-national joint ventur es has been removed.  However, Decree-Law 
No. 87/89 of 24 November (Regulates the activities of  Public Works Contractors and Private Works) 
foresees Associations of enterprises (joint venture) in Article 7.  
According to this Article: 1. The Associations of enterprises constituted in  the ambit of any of the activities regulated by 
this legislation can include only enterprises that ha ve an authorization in the branch of activity 
in question; 
2. The associations of enterprises take advant age of the authorizations of the associated 
members and the class of at least one of them should cover the total amount of the undertaking and that of each of the others, th e amount of the part of the undertaking they 
pertain to in the following conditions: 
 a) Each associated enterpri se is always jointly responsible with the group for the timely 
conclusion of all the obligations emergi ng from the proposal and from the contract; 
and 
 b) The faults committed by the association in the fulfilment of the obligations referred to 
in the preceding subparagraph can be imputed  to each of the associated enterprises, 
for the purpose of application of sanctions by the Commission. 
For tenders, a model of the contract of intentions is required of them.   Of intentions, to prevent those 
that do not win, from the annulment of a laborious and costly process. 
Question 49  
Could Cape Verde explain what are the joint venture requirements for Distribution Services? 
Answer
: 
The requirement for joint ventures has been removed. 
Question 50  
Could Cape Verde explain what are the joint venture requirements for Financial Services? 
Answer : 
This "joint venture" requisite appears in the amb it of the privatization process that was initiated in 
Cape Verde in 1993.  With objective of incr easing the efficiency, the productivity and the 
competitiveness of the companies and strengtheni ng the national entrepreneurial capacity, the 
Government, by force of Law No. 47/IV/92 of 6 Ju ly 1992, established the need (and not obligatory) 
of groups of national shareholders  with entrepreneurial experience to  constitute themselves into joint-
ventures, in other words, to constitute strategic partnerships with foreign investors, selected by 
international tender. WT/ACC/CPV/19 
Page 18  
 
 Question 51  
We would be happy to see a commitment in re-insurance (instead of unbound). 
Answer
: 
Reinsurance has been added as a commitment, as requested. 
Question 52  
The residency/qualifying period (2+3 years to become a broker) seems rather long.  Could 
Cape Verde explain the reasons for the need of such a long period? 
Answer : 
Decree-Law No. 101-P/90 of 23 November establishes this requisite, and the Bank of Cape Verde, at 
present, is aware of the need to reformulate th is law, but has not yet acted to remove it. 
Question 53  Under "Banking", we would be happy to see the a ddition of (c), (d) and (e) – leasing, payment 
services and guarantees and a Mode 1 commitment for (k) – provision of financial information.   
Answer
: 
As requested, sub-sectors (c), (d) and (e) have been added.  The Government of Cape Verde is unable 
to provide a Mode 1 commitment for sub-sector (k). 
Question 54  
For "Tourism", we would suggest that the chapeau "All the commitments…" would be 
removed as it refers to domestic regulation.   
Answer : 
The chapeau has been removed, as requested. Question 55  Could Cape Verde explain what are the Econ omic Needs Test criteria for Hotels and 
Restaurants? 
Answer
: 
As clarified in the revised schedule, the government reserves the right to limit the number of service 
providers which take advantage of the investme nt incentives in the Tourism Utility Law.  The 
economic needs test does not apply to service providers which do not seek government incentives. 
Question 56  
We do not see the need for the restriction on tour operators (as distinct from travel agencies) 
which are wholesale firms and therefore not likely to contribute to local employment.  WT/ACC/CPV/19 
 Page 19 
 
 
 Answer : 
There is no restriction as such, but some cauti on taken during the liberalization process to allow 
national business man to invest or participate with their know-how or take advantage of transfer of 
technology.  However, the understanding of the Gove rnment of Cape Verde is that "tour operators" 
are not simply wholesale firms but are actually organizers of tours.  This is a prime area of national 
development and should in clude local operators. 
Question 57  
We welcome the maritime commitments.  Coul d Cape Verde also consider commitments in 
Aviation (selling/marketing of air transpor t services; computer re servation systems) and 
auxiliary services to all modes of transpor t (freight handling/freight agency services)? 
Answer : 
The Government of Cape Verde is not able to ma ke further commitments because they might infringe 
on the current monopoly of aviation services held by TACV. 
__________