RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/YEM/6 
19 July 2005 
 (05-3222) 
Working Party on the 
Accession of Yemen Original:   English 
 
 
   
ACCESSION OF YEMEN 
 
Additional Questions and Replies
 
 
  The following submission, dated 12 July 2005, is being circulated at the request of the Delegation of the Republic of Yemen. 
 
 
_______________ 
 
 
 
  WT/ACC/YEM/6 
 Page i 
 
 
 TABLE OF CONTENTS 
   
I.
 INTRODUCTION ................................................................................................................... .1 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................1  
2. Economic Policies.............................................................................................................. ........1  
(a) Main directions of the on going economic policies..................................................................1  
(c) Foreign Exchange and payments system ................................................................................3  
(d) Foreign and domestic in vestment policies ..............................................................................4  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................7  
1. Powers of executive, legislative, and judicial branches of government................................7  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................7  
1. Import Regulation.............................................................................................................. .......7  
(a) Registration requirements for engaging in importing...........................................................7  
(b) Characteristics of national tariff ............................................................................................. 9 
(c) Tariff quotas, tariff exemptions............................................................................................... 9 
(d) Other duties and charges....................................................................................................... ...9 
(e) Quantitative import restrictions............................................................................................10  
(f) Import licensing procedures ..................................................................................................10  
(h) Customs valuation.............................................................................................................. .....13  
(k) Application of internal taxes on imports...............................................................................13  
(l) Rules of origin ................................................................................................................ .........13  
(m,n,o)  Anti-dumping regime, Countervailing duty, Safeguard regime.........................................15  
2. Export Regulation.............................................................................................................. .....17  
(f) Export financing, subsidy and promotion policies...............................................................17  
(g) Export performan ce requirements........................................................................................17  
(h) Import duty drawback schemes ............................................................................................18  
3. Internal policies affecting foreign trade in goods.................................................................18  
(a) Industrial policy, including subsidy policies.........................................................................18  
(b) Technical regulations and standards ....................................................................................19  
(c) Sanitary and phytosanitary measures...................................................................................23  
(e) State-trading practices........................................................................................................ ....25  
(f) Free zones ..................................................................................................................... ...........28  
(m) Regulation of trade in transit................................................................................................. 29 
4.  Policies affecting foreign trade in agricultural products.....................................................29  WT/ACC/YEM/6 
Page ii  
 
 V.
 TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................31  
1. General........................................................................................................................ .............31  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................32  
(a) Copyrights and related rights................................................................................................32  
(b) Trademarks, including  service marks...................................................................................32  
(c) Geographical indications....................................................................................................... .33 
(e) Patents........................................................................................................................ ..............34  
4. Enforcement .................................................................................................................... ........35  
VI. TRADE-RELATED SE RVICES REGIME .........................................................................36  
  WT/ACC/YEM/6 
 Page 1 
 
 
 I. INTRODUCTION 
Question 1  Thank you for your answer to Question 1, WT/ACC/YEM/4.  Does Yemen intend to request 
transition periods or other S&D provisions as part of its accession process?  If so, in which areas? 
Answer:
 
Yemen, as an LDC, seeks to benefit from all S&D provisions stipulated in the WTO agreements, 
including those related to transitional periods, tec hnical and financial assistance and capacity building. 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
2. Economic Policies 
(a) Main directions of the ongoing economic policies 
- Privatization Question 2  As regards Question 4 in document WT/ACC/YEM /4, could Yemen identify in Annex 1A the 
companies in which it has more than 50 per cent ownership and briefly describe the activities of 
these companies.   Could Yemen also indicate any plans or timeframes for future privatizations? 
Answer:
 
Enterprises in which the Government has more than  50 per cent ownership were listed in Annex 1A 
document WT/ACC/YEM/4 plus Yemen Airways.  Please note that, the government has less than 
50 per cent equity in National Tobacco and Matc hes Company, Marib Insurance Company, Saba 
Insurance Company and Ar ab Insurance Company. Please also note that the Emulsion and Paints 
Company has been privatized. 
As far as timeframes for privatization are concer ned, please refer to Annex 1B in WT/ACC/YEM/4 
and answer to Question 7 in this document.  Pleas e note that privatization is conducted within the 
framework of the government’s integrated econo mic reform programme, national poverty reduction 
strategy and economic needs. 
Question 3  Yemen’s answer to Question 3, WT/ACC/YEM/ 4 states that the Supreme Committee for 
Privatization approves "studies and proposals concerned with the application of the privatization approach and its implementation me ans."  What kind of studies and proposals are 
approved?  What role do they have in the privatization process?  What are the criteria for approval? 
Answer:
 
Studies referred to in document WT/ACC/YEM/4 are related to evaluation and privatization methods 
pertaining to enterprises under consideration. Such studies assist in decision making.  Please note that WT/ACC/YEM/6 
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 there is a draft amendment to the Privatization La w No. 45 of 1999 limited to tasks and functions of 
the Supreme Committee for Privatization. 
Question 4  
Yemen’s response to Question 3, WT/ACC/YEM /4 states that the Supreme Committee for 
Privatization approves "the executive progr ams and documents and contracts formats, 
including the transfer or retention of ownership  of strategic shares in accordance with the 
privatization procedures, and submit them to the Cabinet for approval."  Please describe the 
executive programs, documents, and contract s formats the committee approves.  What are 
"strategic shares" and what mechanisms ar e used for their transfer?  What are the 
privatization procedures?  Are all pri vatizations subject to Cabinet approval? 
 Answer:
 
Please refer to answer No. 3. The privatization procedures mentioned in answer  No. 3 in WT/ACC/YEM/4, meant to refer  the 
privatization "methods" which are specified in Artic le 5 of the Privatization Law No. 45 of 1999, 
i.e. to:   
- offer shares for public subscription where such a procedure is given a priority so as to achieve 
the objectives of this law; 
- offer the opportunity to employees to participat e through possessing all or part of the shares 
of the privatized  unit; 
- partnership contracts in capital and operation; 
- contracts of management and lease; 
- to sell state-owned assets components; 
- to sell state-owned shares or stocks in the mi xed sector as long as it does not contravene laws 
in force or lead to monopoly; and 
- to return wholly state-owned economic units to their previous legitimate owners prior to the 
issuance of nationalization decisions.  
All privatization processes that involve ownership transfer are subject to Council of Ministers’ 
approval as it is mandated to oversee ownership transfer.   
Question 5  
Thank you for the description of the Technical Privatization Office’s (TPO) responsibilities in 
the answer to Question 3, WT/ACC/YEM/4.  How does the TPO ensure the transparency of the privatization process?  What publications does th e TPO employ to inform prospective investors 
of an opportunity to participate in the privatization of a particular economic unit? 
Answer:
 
In order to ensure transparency, the Technical Privatization Office (TPO) publishes privatization 
announcements more than once in widely-circulated newspaper(s) to ensure the widest possible 
access to this information.  TPO also provides potential investors with leaflets containing all 
necessary particulars and information related to th e unit under privatization.  It also gives the 
opportunity to potential investors to pay a field visit to the economic unit in order to inspect its assets 
physically as well as to enable them to offer ap propriate bids.  Such opportunities are equally 
available for both local and foreign investors.    WT/ACC/YEM/6 
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 Question 6  
What are the usual methods the Supreme Council has adopted to privatize state enterprises? 
Answer:  
Please refer to answer No. 4. 
Question 7  
 We appreciate Yemen’s provision of Annexes 1A and 1B to the WT/ACC/YEM/4.  For 
Annex 1B, please provide the dates of completion for privatizations, expected dates of completion for privatizations that are in progress,  and target dates for st ate enterprises that are 
being studied for potential privatization. 
Answer:
 
The following update represents the status of  some enterprises under privatization process as 
conveyed earlier  in Annex 2B: 
No. Name and location of Enterprise  Privatization Status  
Industrial sector  
1. General Corporation for salt, Aden  Evaluated  
2. Biscuits and Candy Factory, Aden  Privatized, ownership transferred to private sector  
3. Automatic Bakery, Aden  Privatized, ownership transferred to private sector  
4. Dairy Factory, Aden  Liquidated  
5. Textile and Spinning Factory, Aden  Privatization approved though leasing  
6. National Company for Aluminum Manufacturing, Aden  Evaluation decision issued for privatization  
7. Al Thawra Metal Products, Aden  Privatized, ownership transferred to private sector  
8. Yemen Salt and Gypsum Mining and Marketing Co., 
Hodeidah  Privatized, ownership transferred to its employees  
Agricultural Sector  
1. General Company for Pota to Seed Production, Dhammar  Evaluation study approved, privatization in progress  
2. General Company for Vegetable Seed Production, 
Sayeon  Privatized, ownership transferred to private sector  
3. Agricultural Machinery Rental Station, Sayoun  Privatized, ownership transferred to its employees  
4. General Corporation for Digging Wells, Aden  Liquidated  
Fishery Sector  
1. Port of Nashton, Mahrah  Privatization approved through leasing  
 
Please note that there is no specific timeframe for th e completion of the process of privatization.  
(c) Foreign Exchange and payments system 
Question 8 As regards Question 8 in document WT/ACC/Y EM/4, could Yemen describe the rights and 
obligations of residents to engage in foreign direct investment; acquiring or selling securities 
from or to abroad; granting or receiving fina ncial loans to or from abroad; and engaging in 
deposit accounts abroad. WT/ACC/YEM/6 
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 Answer:
 
Yemeni nationals/residents can enga ge in capital operations abroad such as foreign direct investment, 
acquiring or selling securities from or to abroad, granting or receiving financial loans to or from abroad and engaging in deposit accounts abroad.  
Question 9  
In WT/ACC/YEM/4 indicates that "Residents in Yemen may engage in different capital 
operations abroad."  What kinds of capital operations abroad may Yemeni citizens engage in? 
Answer:
 
Please refer to answer No. 8.  
(d) Foreign and domestic investment policies 
Question 10  
As regards WT/ACC/YEM/3, could Yemen preci se in more detail what investment projects 
there are and what guarantees and benefits are accorded to investment projects?  
It is noted that Yemen grants tariff and tax ex emptions for investment projects.  Could Yemen 
describe in more detail the contents of these tariff and tax exemptions. 
Answer:  
Investment projects registered by General Inv estment Authority since the establishment of the 
authority in 1992 until 2004 are summarized as the follows:  
No. Sector  No. of Enterprises 
1 Industrial  2,532 
2 Agricultural  503 
3 Fishery  138 
4 Services  1,186 
5 Tourism  679 
6 Total  5,038 
 
As for the benefits and guarantees given to investme nt projects, they can be summarised according to  
the Investment Law No. 22 of 2002 as follows: 
Guarantees:  
- Non-nationalization and non-c onfiscation of projects except through judicial judgment. 
- Equality between Yemeni and non-Yemeni investors in all rights and obligations. - Ability of non-Yemeni nationals to wholly own the investment project including real estate of 
the project. 
- The possibility of insuring the investment  project against non-commercial risks with any 
international institution, which Yemen is a member of, such as:  
i) Multilateral Investment Guarantee Agency (MIGA); 
ii) International Agency for Investment Guarantee; iii) Islamic Corporation for Invest ment Insurance and Export Credit;  WT/ACC/YEM/6 
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 - Freedom for investors in managing their projects. 
- The right to export without limitation, project’s products.   - Freedom of investors to transfer their money in foreign currencies to and from Yemen and to 
re-export capital invested, whether in kind or in cash, during capital liquidation or alienation.   
- Non- cancellation of registration of an investme nt project, which has been  issued lawfully, the 
confiscation of any right or withdrawal of a given exemption for the project without a judicial 
verdict.   
- Full right of choosing one of the following methods for disputes settlement, which arise 
between the investor and Government when applying the law provisions:  
 i) Unified Investment Agreement fo r Arab Capitals in Arab countries. 
 ii) International Agreement for Settlement of Investment Dispute that arises between 
countries and the nationals of other countries. 
 iii) Any international or bilateral ag reement to which Yemen is a member. 
 iv) Rules and procedures of commercial arb itration pertaining to the International Law 
Committee of the United Nations. 
 v) Rules and procedures of arbitration in the Republic of Yemen. 
Facilities: 
 
- The General Investment Authority acts as a one-stop shop. 
- Provision of data requested by investors. - Simplified procedures to start, expand and deve lop investment projects and registration  in 
specific periods of time according to the law and its by-law.  
- Simplified procedures for the establishment of investment companies and opening their 
branches. 
- Simplified procedures to bring in foreign expe rtise not available locally into the country.  
Custom Duties Exemptions: 
 
- Exempting the fixed assets required to establish,  expand, or develop investment projects from 
tax and custom duties. 
- Exempting the production of livestock, agricultu ral and fish production from tax and customs 
and exempting the production inputs of other projects by 50 per cent from all customs duties. 
Tax Exemptions:  
- According to Investment Law No. 22 of 2002, investment projects are accorded tax 
exemption for a period of 7-16 years depending on;  the area in which the project is 
established,  percentage of the local component  in fixed assets and percentage of the shares 
held by Yemeni nationals in joint stock companies. 
- If projects encounter losses during exemption period, exemption shall be carried over during 
the year (s) of the loss provided that it sha ll not exceed three consecutive years starting from 
the year that follows the exemption years. 
- Exemption from property tax and from the fees of documenting the projects establishment 
contracts as well as the contracts related to the project until finishing its execution. 
- Exemption from income tax on profits distributed by projects. - Exemption from all kinds of fees and taxes imposed on exports.  - Exemption from due tax on export profits after the exemption period of the project. - When projects are expanded, they are also given same tax exemptions for the same periods as 
a proportion of the added capital. WT/ACC/YEM/6 
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 Question 11  
Please provide a list of investments that the Re public of Yemen would ban because they would 
be considered contrary to Shari’a Law. 
Answer:
 
Investments in the following areas, inter alia, would be considered contrary to Shari’a:  
- Gambling casinos and night clubs; 
- Swine and its products; and - Alcoholic beverages. 
Question 12  
Is the term "Special Agreements" code for a Production Sharing Agreement that covers a 
hydrocarbon exploration concession?  Is ea ch Hydrocarbon Production Sharing Agreement 
enacted into law by the House of Representatives? 
Answer:
 
The term "Special Agreements" is code for Productio n Sharing Agreement that covers the hydrocarbon 
exploration concession.  After an ag reement is approved by the Council of Ministers, it is submitted to 
the House of Representatives for ratific ation, and is enacted into a law. 
Question 13  
The Investment Law of 2002 does not apply to investments in "exploration and extraction of oil, 
gas, and minerals that are governed by speci al agreements; weapons industry and explosive 
materials; industries that harm the environm ent and health; banks and exchange bureaus; 
financial trade; and importing, retailing, and wh olesaling."  What law(s) govern investments in 
such industries?  How does Yemen define "industr ies that harm the environment and health?" 
Since telecommunications is not specifically exempt ed from the Investment Law of 2002, does it 
apply to investments in that sector? If not,  what law does apply to investments in the 
telecommunications sector?  Does the investment  law cover investments in the insurance 
business? 
Answer:  
1. Investment in the areas mentioned in the Question is subject to the following:  
 - Exploration and extraction of oil and gas;  governed by "special agreements"  signed  
between the Government, represented by th e Ministry of Oil and Minerals, and  
companies of oil and gas (Please refer to answer No. 12).  Exploration and extraction of minerals, are subject to the Mine s and Quarries Law No. 24 of 2002. 
 - Weapons and explosive mate rials industry: subject to the State’s defence policy. 
 - Industries that harm the environment an d public health: Environment Protection Law 
No. 26 of 1995. 
 - Banks, exchange bureaus and financial trade: Banks Law No. 38 of 1998; Islamic 
Banks Law No. 21 of 1996; and Law No.19 of 1995 on Financial Exchange; Central 
Bank Law No. 14 of 2000; and the Amendments  to the Financial Exchange Law No. 15 
of 1996.   WT/ACC/YEM/6 
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  - Retailing and wholesaling:  Commercial Law No. 32 of 1991 and its amendments by 
Law No. 6 of 1998. 
2. Industries that harm the environment are those covered under Environment Protection Law 
provisions, decisions and regulations issued thereunder, and international agreements. 
3. Telecommunications sector in Yemen is governed by Wired and Wireless 
Telecommunications Law No. 38 of 1991 and it s amendments.  However, current mobile 
services projects benefit from the incent ives provided in the Investment Law. 
4. Investment in the insurance business is g overned by Law No. 37 of 1992 on the Supervision 
and Monitoring of Insurance Companies and Ag ents and it amendments by Law No. 9 of 
1997.  The insurance business is not covered under the Investment Law.   
Question 14  The Investment Law of 2002 appears to have pr ovisions that allow the Government to raise 
tariffs administratively to protect specific domest ic producers.  Is this understanding correct?  
If so, what is the process the Government must follow to raise tariffs?  Does Yemen’s 
constitution require the House of Representati ves to vote in favour of tariff increases? 
Answer:
 
The General Investment Authority may propose a tariff increase to the Customs Tariff Committee. 
Then, the Committee considers such  a proposal and submits it to the Cabinet.  If approved, it is 
submitted to the House of Representatives for ratifi cation and is enacted into a law. It should be 
noted; however such mechanis m has never been used.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
1. Powers of executive, legislative, and judicial branches of government Question 15  Are the terms of international agreements ratifi ed by the House of Representatives and signed 
by the President automatically in corporated into domestic law? 
Answer:
 
Provisions of international agreements that are ra tified by the House of Representatives and signed by 
the President are considered part of the domestic law. 
IV. POLICIES AFFECTING TRADE IN GOODS  
1. Import Regulation (a) Registration requirements for engaging in importing 
Question 16  
In its answer to Question 22 in document WT /ACC/YEM/4, Yemen explains that in order to 
import or export, one must be established in Yemen or have an agent.  Could Yemen clarify WT/ACC/YEM/6 
Page 8  
 
 whether this is a condition across the board or whether this requirement concerns only certain 
sectors?  
If the requirement concerns certain sectors only , could Yemen list these sectors and explain 
which purposes this requirement serves as regar d each sector and why Yemen considers such a 
system is needed? 
If the requirement applies across the boar d, could Yemen clarify which purposes this 
requirement serves and why Yemen considers such a system is needed? 
Answer:
 
Yes, this condition is applicable across the board  and applies to all exportation and importation. 
The rationale is to encourage Yemeni individuals and enterprises to engage in economic activities and 
development.  Limiting the importation process to nationals is a practice that is commonly used in 
many countries.  Furthermore, we believe that  such practice does not violate WTO provisions.  
Question 17  
As regards Yemen’s answer to Question 24 in document WT/ACC/YEM/4, could Yemen 
explain on what basis are the fees fixed? 
Answer:  
The basis for the imposition of different fees is ba sed on the legal form of the entity and different 
services rendered.  
Question 18 
WT/ACC/YEM/4 indicates that the term for bus iness registration is five years after the 
appropriate fee is paid.  Is re-registration automati c upon payment of the fee?  If not, what else 
is required? 
Answer:  
Yes, re-registration is automatic upon payment of the respective fees.  
Question 19  
In Question 26 in WT/ACC/YEM/4, Yemen states that "a non-resident entity may not be 
registered as importer according to Yemeni law."  The inference from this statement is that 
only Yemeni residents or foreign firms who are invested in Yemen have the right to import.  The right to import goods without investing in a member country is a fundamental right under the WTO and is protected through provisions in GATT Article XI and Article III.  Is Yemen aware that its laws in this respect do not conform to the trading rights provisions of Articles 3 and 11 of the GATT 1994?  What does Yemen intend to do to bring its laws governing trading 
rights into conformity with WTO provisions?   WT/ACC/YEM/6 
 Page 9 
 
 
 Answer:  
Foreign investors in Yemen have the right to import products exclusively, which are related to their 
activities. Thus, we believe that Yemeni regulations in  this regard are not inconsistent with Articles III 
and XI of GATT 1994 (Please also refer to answer No. 16).  
(b) Characteristics of national tariff 
Question 20  
Could Yemen clarify whether the Harmonised System 2002 is already implemented and if not, 
when it will be implemented?  
Answer:  
Existing customs classification is HS 1996.  Yemen is preparing a draft amendment to the customs 
classification according to HS 2002, which would be implemented as soon as possible. 
(c) Tariff quotas, tariff exemptions 
Question 21  In response to Question 30 of WT/ACC/YEM/4, Yeme n stated that it would comply with WTO 
provisions in the application of tariff quotas but  that such quotas are not currently available in 
Yemen.  Does Yemen have plans to in troduce new tariff quotas in the future? 
Answer:
 
Yemen currently does not apply tariff quotas, howev er, should that be applied to some sensitive 
products, it shall be in line with WTO agreements. 
Question 22  
In response to Question 31 of WT/ACC/YEM/4, does Yemen currently have a list of current 
agricultural projects where exemptions of customs duties are already provided or are currently 
being considered? 
Answer:  
Customs duties’ exemptions are limited to some ma chinery, equipment, tools, materials and products 
imported by the Ministry of Agriculture and Irriga tion for the specific use in infrastructure projects 
and rural development.  The Ministry is, at pr esent, implementing projects under agreements with 
international organizations such as World Bank, IFAD, FAO, etc.  
(d) Other duties and charges 
Question 23  Could Yemen clarify what is its position as regards removing ODCs upon accession? 
Answer:
 
The treatment of ODCs will be dealt with during the accession process.  WT/ACC/YEM/6 
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 Question 24  
We appreciate Yemen’s commitment in both WT/ACC/YEM/3 and WT/ACC/YEM/4 to submit 
an annex which will list all "other duties and char ges" levied on imports.  Can Yemen provide 
an update on when the ODC annex will be subm itted?  Please explain the purpose of these 
ODCs and why they do not apply to domestic products.   
Answer:
 
A preliminary list of ODCs will be submitted as soon as possible.  The purpose of these ODCs will be 
clarified in said list. 
(e) Quantitative import restrictions 
Question 25 
We appreciate Yemen’s commitment in WT/ACC/YEM/3 to submit an annex which will list all 
prohibited imports.  Can Yemen provide an upda te on when the prohibited imports list will be 
submitted? 
Answer:  
A preliminary list of prohibited imports into Yemen will be submitted as soon as possible.  
(f) Import licensing procedures Question 26 In document WT/ACC/YEM/3, page 17, Yemen explains that it has no import licences but if 
introduced in the future, it would comply wi th WTO requirements.  For which purposes would 
Yemen consider to introduce import licences? 
Answer:
 
Should there be a need for the use of import licensi ng regime; Yemen will abide by WTO agreements.  
Question 27 
(a)  In its answer to Question 41 in document WT/ACC/YEM/4, Yemen explains it uses 
technical clearance for certain products, in cluding books, newspapers, audiovisual, and 
drugs and medical equipment.  What purpose s this system serves, in particular as 
regards books and medicines?  
(b)  As regards Yemen’s answer to Question 41 it is noted that in the case of books and 
newspapers only Yemen nationals can submit  a request.  As regards drugs and medical 
equipment, could Yemen explain who can submit an application and is there a pre-registration? 
(c)  Could Yemen explain what the second and third tiret in the reply concerning drugs and 
medical equipment mean?  
Answer:
  WT/ACC/YEM/6 
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 (a) The purpose of granting technical clearance:  
i) Books, newspapers, and audi ovisual: to preserve public order, security, and to protect 
public morals. 
 ii) Medicine and medical equipment, to ensure:  
- The company producing drugs and medical equipment is registered with the 
Supreme Authority for Drugs and Medical Equipment (SADME), and adheres 
to Good Manufacturing Practices (GMP); 
- Drugs and medical equipment are registered and are in use in the country of 
origin; and 
- Efficacy and safety of drugs and medi cal equipment, and meeting quality 
requirements. 
(b)  In order to be eligible for importing drugs  and medical equipment into Yemen, importers 
need to meet the following conditions: 
 i) registration in the Importers registrar  at SADME; 
 ii) be an agent for a company for drugs and medical equipment; 
 iii) be a full time pharmacist practitioner; 
 iv) registration  in the commercial registrar; and  v) Maintain a store for keeping drugs and medical equipment according to the terms of 
good storage practices.  
(c) It seems that a mistake has occurred in th e presentation of the answer to Question 41 in 
WT/ACC/YEM/4; the answers in paragraphs (a ) and (b), above clarify the situation.  
Question 28  As regards answer to Question 42 in document WT/ACC/YEM/4, could Yemen explain in detail 
the criteria for issuance of technical clearan ce provided by the respective laws.  Could Yemen 
also explain what is the margin of discretion gr anted for the authorities and what is its legal 
basis? 
Answer:
 
Please refer to answer No. 27 above, and answer No. 41 in WT/ACC/YEM/4. Animal consignments should be accompanied by:  - Veterinary Health certificate; and 
- Certificate of origin. 
Please note that in answer to Question 42 in do cument WT/ACC/YEM/4, technical clearances were 
considered as discretionary.  However, after veri fication with the competent authorities, technical 
clearances are actually granted automatically and in accordance with conditions specified in answer to 
Question 41 in the said document, and answer to Question 27 in this document. 
Question 29  
Could Yemen describe in more detail the instrume nts Yemen uses in general to regulate/control 
imports and their justification? WT/ACC/YEM/6 
Page 12  
 
 Answer:
 
The instruments Yemen uses to regulate/control imports are:  - Prior technical permit from the competent authority, i.e. for products requiring technical 
clearance; 
- Compliance with technical regulation standa rds and quality control requirements; and  
- Imported agricultural and veterinary goods mi ght be subject to health, agricultural and 
veterinary quarantine, at arrival ports. 
The purpose for such procedures is to ensure protec tion of human, animal and plant life and health, 
national security, environment,  quality of goods, and the pr evention of commercial fraud. 
Question 30  
We appreciate Yemen’s commitment to comply with the Agreement on Import Licensing 
Procedures, including notification requireme nts, upon accession and its fulsome response 
provided in Question 41 of WT/ACC/YEM/4 on the requirements for obtaining "technical clearance" for products listed in Annex 3.  Howe ver, we are concerned that the fees charged for 
technical clearance are not in conformity wi th WTO requirements.  Under the WTO Agreement 
on Import Licensing Procedures, all fees for li censes or permits to import products must be 
based on the cost of services rendered.  Does Yemen have any plans to bring these fees into 
compliance with the WTO Agreement on Import Licensing Procedures? 
Answer:
 
Upon accession, Yemen will ensure that fees collected on technical clearances are in compliance with 
the WTO Agreement on Import Licensing Procedures. 
Question 31  The answer to Question 41 of WT/ACC/YEM/4 also states that only Yemeni nationals may 
apply for a technical clearance from the Ministry of Information or the Ministry of Culture and 
Tourism to import newspapers, publications, and artistic works such as movies, videos, 
cassettes, etc.  Can a foreign individual or firm  legally present in Yemen import such products 
for commercial sale in Yemen?  Can a foreign individual legally residing in Yemen import such 
products for personal use?  Can a foreign fi rm legally registered in Yemen import such 
products if they are inputs into its production process?  If not, does Yemen intend to modify its 
laws to allow foreigners to import such products into Yemen as protected by Articles III and XI 
of the GATT 1994? 
Answer:
 
A foreign individual  legally residing in Yemen may impor t publications and artistic works for 
personal use after obtaining a technical clearance, but not for commercial purposes. 
A foreign firm legally established in Yemen ma y import publications and artistic works for 
commercial sale after obtaining a technical clearance.  However, the firm has to be licensed to import. 
A foreign firm operating in Yemen is allowed to im port publications and materials if they are inputs 
to its production operations. 
Yemen considers such practices are in conformity with Articles III and XI of GATT 1994.   WT/ACC/YEM/6 
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 (h) Customs valuation 
Question 32  Could Yemen provide the work programme for br inging the customs valuation system in full 
compliance with the WTO customs valuation agreement?  
Answer:
 
The Work Programme, including transitional peri ods and technical assistance for bringing the 
customs valuation system in full compliance with  the WTO Customs Valuation Agreement, will be 
submitted as soon as possible.  
(k) Application of internal taxes on imports 
Question 33  
Could Yemen confirm that there is no discrimi nation between imports and exports?  Could 
Yemen clarify whether there is a different application of taxation of imported products depending on their origin, e.g. stemmi ng from bilateral trade agreements?  
Answer:
 
There is no discrimination between imports and expor ts except that imports are subject to Production, 
Consumption, and Services taxes, while exports are ex empted from such taxes.  In the case of bilateral 
or regional trade agreements, imported goods from t hose countries are subject to the provisions of 
such agreements. 
(l) Rules of origin 
Question 34  Could Yemen provide the work programme for brin ging the system of rules of origin in full 
compliance with the WTO agreement on origin? 
Answer:
 
Yemen believes that it observes the general principa ls of the WTO agreement on Rules of Origin, and 
will apply MFN rules of origin that would result from the ongoing negotiations in WTO. 
Question 35 
With respect to Yemen’s Customs Law No. 14 of 1990, Article 32 states that the origin of a good 
is the country of production. When a good is produced in more than one country, Article 34 
requires that the origin be determined acco rding to the degree of manufacturing and in 
accordance with the rules established by the resolu tion of the competent minister.  We need 
more information regarding the requisite "degree of manufacturing" that would result in a 
change of origin, as well as information abou t resolutions issued by the competent minister. WT/ACC/YEM/6 
Page 14  
 
 Answer: 
 
Minister of Finance Resolution No. 356 for the year 1990 considers the country of manufacturing as 
the country of origin when the degree of manufacturi ng the value of materials and labour inputs being 
not less than 40 per cent of the total cost of production.  
Reference to the minister’s authority to exempt ce rtain items from the certificate of origin requirement 
is not discretionary.  
Question 36 
Article 33 states that a resolution of the "minis ter concerned" shall determine the conditions for 
establishing origin and the cases of exemption from establishing such origin.  We need 
clarification as to how this article will be applied and under what circumstances will an 
exemption be granted. 
Answer :  
In addition to information provided in answers to  Questions No. 34 and 35, please note that Yemen 
has no detailed rules of origin for non-preferential tr ade.  However, a certificate of origin is required 
for all imported products.  
The following items are exempted from th e certificate of origin requirement:  
- Personal postal packages; 
- Advertising materials and samples of goods  that do not carry commercial value; 
- Personal luggage and other pe rsonnel belongings that travelle rs may take with them for 
temporary stays, including tourists and alike,  for their personal u se and within limits 
permitted; 
- Personal luggage, furniture, home appliances for Yemeni expatriates, within limits permitted; 
- Books, newspapers, magazines, periodicals and catalogues; - Waste of anchored, sunk, and wrecked ships in Yemeni territorial waters; 
- Incoming presents, grants, donati ons and assistances to Yemen; 
- Imports of embassies, commissions and foreign consulates for official use, on a reciprocity 
basis; and 
- Imports of heads and members of diplomatic corps, consulates or foreigners working in 
Yemen for personal use and within the li mit permitted, on a reciprocity basis. 
Question 37  
For goods transhipped through an intermediate co untry that enter into the commerce of that 
country, Article 34 allows the country of origin to be determined by the country of manufacture 
or  the country of export, whichever is higher.  The origin of a good should be based on where 
the article was produced.  If we understand this  correctly, the applicable tariff rates should not 
influence origin determinations. 
Answer:
 
Your understanding is correct, i.e. applicable tariff rates do not influence origin determination; please 
also refer to answer No 35.    WT/ACC/YEM/6 
 Page 15 
 
 
 Question 38 
Article 35(b) indicates that the League of Arab States may issue "clarifications" of customs 
tariffs.  Please provide more information about these clarifications.  May importers directly 
request clarifications from the League?  Are thes e clarifications binding on all member states?  
Are the clarifications publicly available?  What customs issues are addressed by these 
clarifications (e.g., classification, valuation, origin)? 
Answer:  
As Arabic is not an official language of the Wo rld Customs Organization, the clarification of the 
League of Arab States are unofficial translations of wh at is issued by this organization with respect to 
customs classification, in accord ance with Harmonised System.  Such translations are publicly 
available. 
Question 39 
Article 206 precludes judicial review of customs violations.  However, the customs authority 
may grant an exception to an importer that would allow an appeal.  Under the WTO Valuation Code and U.S. free trade agreements, importers mu st have the right to an administrative and 
judicial appeal of customs decisions. 
Answer:
 
Customs Law avails importers of the right to ad ministrative and judicial appeal of any decision 
relevance to them.  
(m,n,o) Anti-dumping regime, Countervailing duty, Safeguard regime 
Question 40 
Could Yemen indicate the state of the preparatory work as regards the trade defence 
instruments legislation and  when the trade defence instruments legislation is foreseen to be finalised? 
Answer:
 
A draft law is currently under preparation, which takes into account compliance with the related WTO 
agreements.  WTO secretariat will be  consulted on the legislation. 
Question 41 
We seek an appropriate commitment in the Wo rking Party report that Yemen will not apply 
safeguard, antidumping or countervailing meas ures without first notifying to the WTO 
legislation covering such measures consistent with WTO Agreements. 
Answer:  
Please refer to answer No. 40. WT/ACC/YEM/6 
Page 16  
 
 Question 42  
In response to Question 57, Yemen stated that the provisions of Articles 12 and 13 of the 
Customs Law No. 14 (1990) have never been applied.  However, Yemen did not provide an explanation, as requested, of some of the terms under which Yemen may impose "compensating duties" on imported goods. 
- Explain how Yemen will determine "when a co untry of origin provides direct subsidies 
to exports"; and 
- Explain how Yemen will determine "when a co untry reduces the prices of its products 
in a matter that leads to the depression of Yemen’s domestic products." 
Answer:
 
Please refer to answer No. 40. 
 
Question 43  
Additionally, in the Memorandum on the Foreign Trade Regime (WT/ACC/YEM/3) at page 18, 
Yemen stated that, pursuant to the Customs Law, it will "adopt appropriate measures needed 
when a country adopts harmful measures to the interests of the national economy." 
- Explain what you mean by "appropriate measures" in that statement; and 
- Explain what you regard as "harmful measures to the interests of the national 
economy." 
Answer:  
Please refer to answer No. 40. Question 44  In response to Question 58, Yemen states that it  considers enacting antidumping, countervailing 
and safeguard legislation upon accession. 
- State whether draft versions of any such legislation currently exist; 
- If any draft legislation currently exists, please circulate copies to the Working Party for 
review; 
- If not, state when you anticipate any such dr aft legislation will be ready to circulate; and 
- Additionally, explain whether, and to what extent, the anticipated legislation will follow 
closely the language of the relevant provisions of the ASCM. 
Answer:
 
Please refer to answer No. 40.  WT/ACC/YEM/6 
 Page 17 
 
 
 2. Export Regulation  
(f) Export financing, subsidy and promotion policies Question 45 As regards Questions 62, 63 and 64 in docume nt WT/ACC/YEM/4, could Yemen specify in 
more detail the products and sectors that could be affected by future plans. 
Answer:
 
As stated previously in WT/ACC/YEM/4, Yemen curre ntly has no specific plans in the area of export 
promotion.  However Yemen, as an LDC, confirms that export promotion programmes, if introduced 
in the future, will be fully consistent with WTO provisions.  
Question 46  
In the Memorandum on the Foreign Trade Re gime (WT/ACC/YEM/3) at page 19, Yemen 
stated that Republican Decree No. 127 of 1 997 established the Supreme Council for Export 
Promotion (SCEP) to "study potential foreign markets, organize trade missions, organize trade 
fairs, and provide information to bo th domestic and foreign exporters." 
- Identify what specific studies, if any, a re in progress or have been completed under the 
auspices of the SCEP. 
- Explain what particular export markets, sector s or products have been identified by any 
such studies for any potential future export financing, subsidy and promotion policies. 
Answer:  
The Supreme Council for Export Promotion has commissioned some studies on neighbouring 
markets, the result of which will be duly taken in to consideration in shaping future Government 
export policies.  
(g) Export performance requirements 
Question 47  In response to Question 65 of WT/ACC/YEM/4, Yemen states that, as an LDC, any export 
subsidy schemes it may introduce in the future will be compatible with WTO rules. 
Toward this end, state whether Yemen intends to have any recourse to Articles 27, 28, or 29 of 
the ASCM. 
Answer:
 
Yemen, as an LDC, reserves the right to avail itself of ASCM provisions, particularly Article  27.  WT/ACC/YEM/6 
Page 18  
 
 (h) Import duty drawback schemes  
Question 48 As regards Question 66 in document WT/ACC/YE M/4, could Yemen explain in detail the way 
its import duty drawback scheme is operated, ma king the link to the relevant parts of Annex 2 
of the Agreement on Subsidies and Countervailing Measures? 
Answer:
 
Under the duty drawback scheme, duties are ref unded to exporters on impor ted inputs which form 
part of the final exported products. Refund s do not exceed the actual amount paid.  
Question 49 
In response to Question 66 of WT/ACC/YEM/4, Yemen stated that its import duty drawback 
scheme is operated in a manner consistent with guidelines outlined in Annex 2 of the ASCM. 
- Explain how your authorities confirm which inputs are consumed in the production of 
the exported product and in what amounts; and 
- Identify or describe the generally accepted accounting practices, if any, that your 
authorities will use to ensure that the draw back does not exceed the actual duties paid 
upon importation. 
Answer:  
Please refer to answer No. 48. 
3. Internal policies affecting foreign trade in goods  
(a) Industrial policy, including subsidy policies  
Question 50 
In its reply to Question 69 in document WT/ACC/YEM/4, Yemen indicates that general 
objectives as regards encouragement and developm ent of industrial sector have been identified. 
Could Yemen describe in more detail these objectives and what kind of measures are foreseen for their accomplishment? 
Answer:
 
Yemen has identified some general objectives in respect to the notion of encouragement and 
development of the industrial sector. 
Measures foreseen for the accomplishmen t of such objectives include:  
- Revision of legislations pertaining to  investment and industrial activities;  
- Simplification of export procedures; - Promotion of small industr ies and handicrafts; and  
- Enhance investment climate.  WT/ACC/YEM/6 
 Page 19 
 
 
 Question 51 
In response to Question 67 of WT/ACC/YEM/4, Yemen states that it will endeavour to comply 
with the WTO provisions when establishing industrial zones. 
Explain whether Yemen intends to impose any local content or export performance 
requirements on products manufactured or  assembled in such industrial zones. 
Answer:  
Yemen intends to avail itself of both measures,  as needed within the context of Yemen’s 
development.  
Question 52 
In response to Question 68 of WT/ACC/YEM/4, Yemen states that its industrial policy has not 
been finalized yet, and that "more studies and t echnical assistance are needed in this respect." 
- Identify or describe any studies currently in progress or completed in pursuit of an 
industrial policy; 
- Identify or describe any technical assistan ce already received or anticipated in pursuit 
of an industrial policy; and 
- In reference to the above, identify the indus tries or sectors that are subject to study or 
technical assistance. 
Answer:  
Industrial activities in Yemen are considered in their infancy phase. Studies are related to the 
preparation of an initial strategy aiming at the development of manufacturing sector and technology 
transfer.  Yemen looks forward to receiving techni cal assistance in the areas of the infrastructure of, 
inter alia, manufacturing, mining and exploration industries, as well as traditional and handicraft 
industries.  The objective of such technical assistan ce is to enhance the re spective activities’ value, 
broaden their scope, and improve the overall performance and export competitiveness with a view to 
achieving the MDGs.  
(b) Technical regulations and standards 
Question 53 
Could Yemen indicate when will its action plan for implementation of the TBT Agreement be 
finalised?  
Answer:  
An Action Plan for the implementation of TBT Agre ement, including timetables, transitional periods 
and necessary technical assistance, will be submitted as soon as possible. 
Question 54 We appreciate the information provided by Yemen in its response to our previous Questions, its 
submission of the TBT checklist (WT/ACC/YEM/5) and provision of its Law No. 44 on Standardization, Metrology and Quality Control Organization. WT/ACC/YEM/6 
Page 20  
 
 Yemen has cited its Law No. 44 as the basis for ensuring fulfilment of such WTO TBT 
obligations as non-discrimination and transparen cy of standards and regulations, yet the law 
itself does not include detailed information.  Are there additional decrees which would provide further details on existing procedures for de veloping standards and regulations (e.g., any 
procedures to ensure publication of notices of proposals and final regulations and standards; 
opportunities for public comment and consideration  of comments received, guidance on timing 
of entry into force of regulations and mandatory standards after adoption, etc.)  (We note that 
Article 33 of the Standardization Law indicates "The concerned ministries and authorities shall 
issue the resolutions required for the execution a nd implementation of this law").  We would 
appreciate any additional information to estab lish credibility of the claims Yemen has made 
about transparency and non-discrimination. 
Answer:
 
The following legislation explains in detail th e articles of Law No. 44 of 1999 as follows: 
- Minister of Industry and Trad e’s- Chairman of Board of Directors - Decree No. 21 of 
2003 on Organizational matters pertaining to YSMO and its Branches in Governorates; 
- By-law on Conformity Certificate Issuance for Standards No. 3/2001; 
- By-law of Quality Mark Adopti on of National Products No. 11/2001; 
- By-law of the Regulation of Rules and Pr ocedures Pertaining to  the Processes of 
Inspection and Testing for Goods and Dome stic and Imported Pr oducts No. 13/2001; 
- By-law on Quality Mark Granting System No. 14/2001; - By-law on Regulation of Standards Pr eparation Procedures No. 22/2001; and 
- By-law on Evaluation of Goods and Enterpri ses Conformity for Accredited Standards 
No. 2/2003. 
This decree and by-laws above provide clear inform ation on the procedures on the preparation, adoption 
and application of standards, tec hnical regulations, and conformity assessment procedures, including 
procedures to ensure publicati on of notices of proposals and fi nal regulations and standards, 
opportunities for public comment and consideration of comments rece ived, and their approval, etc. 
YSMO has been identified as a focal point on TBT matt ers, in order to provide information related to 
standards, technical regulations, and conformity assessment proce dures, responses to all enquiries, 
circulate notifications, as well as to provide do cuments and information on technical regulations and 
conformity assessment in Yemen.  YSMO also publishes newslett ers and holds semina rs for awareness 
purposes. 
YSMO abides by the principles of non-discrimination and National Treatment: 
- Technical regulations are applied to  both local and imported products; 
- Yemeni and regional standards are a pplied to local and imported products; 
- Conformity assessment procedures for lo cal and imported products are applied on the 
basis when conducting inspections; and met hods of testing are not different; and 
- Inspection and testing fees are the same for both local and imported products, i.e. 
without discrimination pursuant to the Mi nisterial Decision No. 11 of 2004 on the 
regulation of fees of inspections costs  for YSMO’s laboratories. 
Article 33 aims to coordinate relevant agencies’ work  in respect to the implementation of the law, based 
on their respective areas of competences. 
Pursuant to Yemen’s constitution, international agr eements, such as WTO Agreement, when enacted as 
laws, are considered and treated as domestic laws.  Hence, Yemeni legislation shall fully comply with  WT/ACC/YEM/6 
 Page 21 
 
 
 the principles of transpar ency and non-discrimination.  However, technical assistance is required to 
ensure compliance with the TBT Agreement in accordance with the Action Plan for its full 
implementation.  
Question 55 
Law No. 44 indicates that YSMQCO "recognizes" laboratories.  Are there published criteria by 
which the competency of laboratories is judged?   Do government regulations oblige the use of 
recognized laboratories, or is this voluntary? Is  it possible for laboratories based in other 
countries to qualify for recognition?  Are certificates from bodies other than YSMQCO recognized by Yemeni authorities?  If so, on what basis?  
Answer:
 
YSMO is currently preparing an integrated system th at regulates the recognition process of laboratories. 
YSMO will recognize standards, ev idence, recommendations, and guide lines issued by international 
organizations, including the international standard  of ISO/ IEC17025 (general  requirements of the 
competence of standardization, testing, and inspection laboratories). 
YSMO will deal with recognized laborator ies when an operational system is adopted. 
Yes, laboratories based in other c ountries are eligible for recognition if they are technically competent 
and meet required conditions, i.e. within international practices of laboratories recognition system.  
Certificates issued by bodies other than YSMO  are not recognized by Yemeni authorities.  
Question 56 
It is our understanding that Yemen does not cu rrently publish proposals.  If our understanding 
is correct, could Yemen describe its plans for en suring notice is published of the availability of 
draft standards and technical regulations, and th eir final adoption?  In addition, how will 
Yemen ensure that its regulatory authorities understand the WTO obligation to evaluate and 
consider comments received on propos als before adopting them as final? 
Answer:  
Yemen is in the process of establishing an enqui ry point and preparing an Action Plan for the 
implementation of the TBT Agreemen t, including provisions related to  public notice for draft standards 
and technical regulations. 
Question 57 
We would appreciate any additional information on mechanisms Yemen has in place, or plans 
to put in place, to ensure coordination betw een agencies/ministries on the development and use 
of standards, technical regulations and confor mity assessment procedures.  Information on 
which agencies are represented on YSMO’s Board of Directors would be useful as well as any 
general guidance regulatory authorities may have  on how and when technical regulations and 
mandatory conformity assessment  procedures should be deve loped.  We understand that 
YSMO’s Board of Directors can initiate the develo pment of a technical regulation –what is the 
process for doing so?  Is there any required document ation, evidence of a problem, cost-benefit 
and/or regulatory impact analysis, etc.? WT/ACC/YEM/6 
Page 22  
 
 Answer:
 
YSMO ensures cooperation and coordination with ag encies/ministries on the development and use of 
standards, technical regulati ons and conformity assessment. 
YSMO’s Board of Directors is composed, pursu ant to the Decision No. 52 of 2000 on YSMO’s 
Establishment and the Cabinet’s Decision No. 272, of Ministry of: Industry and Trade, Finance, 
Information, Agriculture, Civil Works, Higher Education; as well as representatives of: YSMO, 
Supreme Authority for Medicine, Federation of Chambers of Commerce and Industry, and the 
General Authority for Environment Protection. 
The by-law regulating the procedures of preparing Ye meni standards has specifi ed the process of how 
and when the technical regulations should be prep ared. The specification department, when preparing 
specification proposals, ensures the following: 
- Preparation of Yemeni standards and specifications are carried out through the 
formation of specialized national committees that divided into main committees and 
sub-committees and technical committees fo r the specification formulation. These 
committees prepare the initial draft standards; 
 - Proposals for draft standards are dist ributed once to the competent authorities 
(governmental, private sector, civil societ y organizations, universities, scientific 
centres, etc) accompanied with the voting form; 
 - Substantial comments’ providers are i nvited to the meetings of the technical 
committee to discuss the comments; 
 - Submission of the initial draft after finali zation based on what has been agreed on, to 
the concerned main committee, including a detailed report on the results of their 
meeting; 
 - The main committee studies the draft and if it agrees on it, the same shall send it to a 
Follow-up Department within the authority to complete the procedures of finalizing the draft; and 
 - The competent department shall prepare the draft in its final form and submit it to the 
board of directors. 
Question 58  
How does YSMO assess the quality of locally pr oduced goods in order to issue them the 
compliance certificate needed for export?  Wh at are the standards YSMO applies in the 
process? 
Answer:
 
In order to issue the compliance certif icate, YSMO applies the following:  
 - Take a sample from the consignment to be examined and tested according to the 
applicable standards. A report shall then  be prepared on the result of the test; 
 - Study results of tests and examinations, compare that to the related standards, and 
prepare a report in that respect; 
 - Grant the certificate in case sample confor ms to the standards related thereto; and  
 - Notify the exporter enterprise in writing in case inconformity reasons. 
YSMO generally applies international standards.  WT/ACC/YEM/6 
 Page 23 
 
 
 (c) Sanitary and phytosanitary measures 
Question 59 We appreciate Yemen’s completion of the SPS ch ecklist.  We look forward to seeing a revised 
checklist that incorporates more details, including  timelines and mechanisms for incorporating 
SPS Agreement requirements into Yemen’s tr ade and SPS regime.  Such an augmented 
checklist could serve as a useful step towards develo pment of an action plan, or, if sufficiently 
robust, serve as the action plan itself. 
Answer:
 
A revised checklist and/or Action Plan on the im plementation of SPS measures, including timetables, 
transitional periods and technical assistance for full implementation will be submitted as soon as 
possible. 
Question 60  
The SPS Agreement requires prior publication for public comments of draft legislation, 
technical regulations, or standards.  Yemen should  establish a notification authority as soon as 
possible to perform this function. 
Answer:  
Yemen will endeavour to implement the SPS Ag reement in accordance w ith the Action Plan, 
including the establishment of appropriate notifica tion authority.  To this end, Yemen is looking 
forward to receiving technical assistance.  
Question 61 
What specific technical assistance does Ye men consider necessary to complete its 
implementation of the SPS Agreement? 
Answer:  
A preliminary list of technical assistance that Yemen considers necessary to complete its 
implementation of the SPS Agreement will be submitted as soon as possible. 
Question 62 
By accession, will Yemen begin to notify summar ies of proposed measures (when published) to 
the WTO and assure that any interested parties can contact the enquiry point for referral to 
information for a specific measure? 
Answer:  
Yemen will start notifying WTO of summaries of  proposed measures through the inquiry point 
according to the Action Plan including needed tec hnical assistance to implement the SPS Agreement. WT/ACC/YEM/6 
Page 24  
 
 Question 63 
Please explain how Yemen will change, if necessary , appropriate domestic laws and regulations 
to ensure that measures are applied only to the extent necessary to protect human, animal, or 
plant health. 
Answer:
 
To ensure the application of SPS measures to the extent necessary only to protect human, animal and 
plant health, Yemen will revise its legislation relate d to the Agreement as would be reflected in the 
SPS Action Plan.  
Question 64 
Will Yemen amend legislation to state specifically  that regulations governing animals and plant 
health and food safety shall be based on scienti fic evidence?  When will this be accomplished? 
Answer:  
Please refer to answer No. 63. 
Question 65 
Are Yemen’s current SPS measures based on st andards set by the WTO recognized standard 
setting bodies?  Will new SPS measures come fr om these standard-setting organizations? 
Answer:  
Yemen applies standards set by the WTO rec ognized standard setting bodies which Yemen is a 
member of, namely Codex Alimentarius, IPPC a nd OIE. In case new SPS measures are developed, 
international standards w ill be taken into account. 
Question 66 
Does Yemen currently have a process of determinin g equivalence? If not, can Yemen please 
explain how it plans to determine equival ence and when that process will commence? 
Answer:  
Currently, there is no specific process to identify th e concept of equivalency. Yemen wishes to adapt a 
process to determine equivalence once it receives the technical assistance needed to fully to 
implementation SPS Agreement. 
Question 67 
How does Yemen currently implement policies relat ed to food safety and plant and animal 
health?  Does Yemen perform its own independent risk assessments?  If not, does Yemen plan to introduce any legislation or introduce regulations that food safety and animal and plant health regulations are based on risk assessments? If so, when?  WT/ACC/YEM/6 
 Page 25 
 
 
 Answer:  
Yemen currently applies policies related to food safety and plant and animal health through its 
membership in the relevant international standa rds setting bodies: Codex Alimentarius, IPPC and 
OIE.  
Yemen seeks to develop its risk assessment capaci ty through the appropriate technical assistance, 
within the framework of the Action Plan  on the implementation of SPS Agreement. 
Question 68 
Does Yemen plan to introduce any legislation so that food safety and animal and plant health 
regulations take into account regional characteristics? 
Answer:  
Currently, Yemen has no plan to introduce legislati on related to regional characteristics on food safety 
and animal and plant health.  However, Yeme n will consider that when the need arises. 
Question 69 
Which regulatory agencies in Yemen have or wi ll have appropriate control, inspection, and 
approval procedures? 
Answer:  
The key regulatory agencies in Ye men that have or will have appr opriate control, inspection and 
approval procedures are Ministry of Agriculture and Irrigation, Ministry of Public Health and 
Population in areas related to human health, and Mini stry of Civil Works in the area of  control and 
regulation over the circulation of food stuff in the country.  
(e) State-trading practices 
Question 70 
Could Yemen list the companies in which the G overnment has at least 50 per cent of their 
capital and explain what are their activities? 
Answer  
Please refer to answer No. 2.  
Also, please note that the following co mpanies are Government owned:  
- Yemen General Company of Oil & Gas; 
- Yemen Oil Company; - Aden Refinery Company; and - Yemen Refinery Company. WT/ACC/YEM/6 
Page 26  
 
 Question 71 
In its reply to Question 81 in document WT/ ACC/YEM/4, Yemen explains that the Government 
organizes and oversees the domestic trade of loca lly produced petroleum products to determine 
the quantity of crude oil and its derivatives for local consumption.  
Could Yemen explain whether there are any price ceilings for petroleum or gas intended for 
local consumption?  
Answer:
 
The Government took a number of measures that led to the liberalization of the prices of a number of 
refined oil products such as fuel oil and turbine fuel.  This process has led to increased prices of 
gasoline, diesel, kerosene and LPG within the frame work of price reform with a view to reflect 
international refined products’ prices. 
Question 72 
Could Yemen indicate what is the price diffe rence between locally produced and exported 
petroleum products? 
Answer:  
Refineries in Yemen sell oil refined products in li ne with international price, when exporting to 
international markets.  
Currently Government accounts for the differen ce, if any, between the local sale price and 
international price of gasoline, diesel, and local ke rosene, taking into account the living conditions of 
the population. Other petroleum products ar e sold at international market prices. 
Government is currently reviewing its polic y on that matter for further liberalization. 
Question 73 Following up on Yemen’s response to Question 81 of WT/ACC/YEM/4: (a) What Government institutions organize and oversee the domestic trade of locally 
produced petroleum products?   
(b) How does that institution(s) determine th e quantity of crude oil and its derivatives 
required for local consumption?   
(c) What mechanisms does the institution(s) use to distribute refined crude oil products to 
retailers?   
(d) What refined products are available in the market?  (e) What are their prices?   (f) How are prices determined? 
Answer:
 
(a) Government institutions that organize and oversee the domestic trade of locally produced 
petroleum products are: 
 - Ministry of Finance; 
 - General Yemeni Corporation for Oil and Gas;  WT/ACC/YEM/6 
 Page 27 
 
 
  - Yemen Oil Company; 
 - Aden Refinery Company; and  - Yemen Refining Company. 
(b) Yemen Oil Company, forecasts the need of  the market on annual basis based on actual 
consumption of the previous year and allowi ng for a growth average of (5-10) per cent  
according to the type of oil derivatives. Af ter agreeing on those estimations with the 
institutions mentioned above, they are sent to  the Aden Refinery Company which provides 
the market with the n eeded oil refined products, whether re fined in the company- or imported 
from the international market to cover local  demand. Quantities satisfying those needs are 
specified according to the extraction per centage per barrel used in the refinery. 
(c) Yemen Oil Company buys oil products from Aden Refinery and Marib Refinery and sells 
them to state-owned petrol stations in Aden & Hadramout, the private sector stations spread all over Yemeni governorates and big customers like electricity and cement factories. 
(d) Refined products available in the market are:  - Benzene; 
 - Kerosene; 
 - Diesel; and  - Mazout. 
 Quantities of diesel and mazout are imported from the interna tional market to cover the local             
shortage. 
(e) Products without price ceilings: 
- Mazoot:  sold at international prices. 
- Turbine (aircraft fuel): sold  at international prices.,  
Products sold, often, with less than international prices: - Gasoline:  35 riyals per litre. 
- Diesel:     17 Riyals per litre. 
- Kerosene: 16 Riyals per litre. 
- LPG:     205 Riyals per cylinder. 
Please note that those prices are applicable to all sectors of the economy.  Currently the government is reviewing its po licy on petroleum products, including taking 
further liberalization steps.  
(f) For local determination of prices, please refer to answer No. 72. Question 74  Annex 1B of WT/ACC/YEM/4 lists Aden Refin ery Company as a State Owned Enterprise.  
Annex 6 of WT/ACC/YEM/3 states that "there is no state trading practices in Yemen ... ."  Is 
Aden Refinery Company the only supplier of refined petroleum products to the domestic 
market?  To what domestic institutions or  businesses does the Aden Refinery Company sell 
refined products?  Does Aden Refinery Company export its products? WT/ACC/YEM/6 
Page 28  
 
 Answer:
 
Please refer to the answer to Question 73. Local market is supplied from Aden Refinery i.e. up  to (90 per cent) of the total consumption from 
both refined products, or other a dditional imported materials, in addition to refined products from 
Marib refinery which are estimated around (10 per cent) of the total consumption. 
The two refineries operate according to ordinary commercial practices.  
There are plans to establish  two privately owned refineries. Aden Refinery exports petroleum products  such as Kerosene, Naphtha and Mazout. 
Question 75  
Is the Public Electricity Corporation the only suppli er of electricity in Yemen?  What is its price 
tariff? 
Answer:
 
The Public Electricity Corporation is the only supplier of electricity in Yemen. 
Electricity Tariff  
Segment  Tariff R/ KWH  
Household (Urban)  
 0-200  4 
 201- 350  7 
 351- 700  10 
 More than 700  17 
Household (Rural)   
 0- 100  7 
 More than 100  17 
Commercial  17 
Water Corporation  and Industrial  15 
Government  18 
 
(f) Free zones Question 76 In response to Question 83 of WT/ACC/YEM/4, Yemen summarized the incentives and 
privileges provided under Law No. 4/1993 on F ree Zones, including the Aden Free Zone. 
– Explain whether Yemen imposes any local co ntent or export performance requirements 
on products manufactured or assembled in the Aden Free Zone or other free zones; and 
– Identify the particular products manufactu red or assembled in the Aden Free Zone or 
other free zones that are subject to an y local content or export performance 
requirements.  WT/ACC/YEM/6 
 Page 29 
 
 
 Answer:  
Privileges and incentives mentioned in the Free Zone  Law No. 4 of 1993 are available in the Free 
Zone of Aden for licensed investment projects w ithout prior conditions concerning the local content 
or export performance requirements of manufactured or assembled products in the Free Zone of Aden. 
All projects operating in the free zone areas enjoy the same benefits and incentives provided by the 
Free Zone law.  
(m) Regulation of trade in transit 
Question 77 Could Yemen provide more precise explications on transit than those given in document 
WT/ACC/YEM/3, e.g. how the various elements of Article V GATT are taken into account? 
Answer:
 
We believe that transit trade as prescribed in Customs Law No. 14 of 199 0 is consistent with 
Article V of GATT 1994. 
4.  Policies affecting foreign trade in agricultural products 
Question 78 
Yemen states it will abide by the rights and ob ligations of LDCs within the framework of the 
Agriculture Agreement upon accession.  To wh ich "rights and obligations" specifically is 
Yemen referring? 
Answer:  
The reference to the rights and obligations is meant to indicate Yemen’s adherence to full 
implementation of the Agreement on Agriculture, including S&D provisions provided for LDCs on 
market access, domestic support, and export subsidies. 
Question 79 
As Yemen currently has no export subsidies, we expect that Yemen would not enact any.  Such 
an action would run counter to the trend within the WTO, where the elimination of export subsidies is already under negotiation.  Is Yeme n considering the enactment of agricultural 
export subsidies upon accession? 
Answer:
 
Please refer to the answer to Question 78.  Please not e that agricultural exports in Yemen are currently 
limited.  Current and future policies seek to enha nce the export of agricultural  products from Yemen. 
In this context, Yemen reserves the right to take measures which are in compliance with the 
Agreement on Agriculture.   
Question 80 Yemen indicated in the answer to Question 92 of WT/ACC/YEM/4 that it discourages the 
export of charcoal as well as some rare bird s and animals.  Please provide a list of these WT/ACC/YEM/6 
Page 30  
 
 products.  Please also describe the reason Yeme n "discourages" their export and the measures 
used to achieve this purpose. 
Answer:
 
Yemen discourages the export of charcoal, some rare birds, including funa and flora, and animals, and 
exhaustible materials for reasons related to the cons ervation of environment.  Furthermore, Yemen is a 
signatory to the CITES Agreement concerning the prohibition of trade in endangered plant or animal 
species.    
Item Reasons of Export Ban Measures Taken to achieve the 
purpose 
Charcoal Protecting the flora from desertification and 
conservation of the environment  Charcoal is not licensed to exit across 
customs entry points 
Rare Birds & Animals Protecting from Extinction  Rare birds and animals are not licensed 
to exit across customs entry points 
 
Question 81 
In response to Question 94 of WT/ACC/YEM/4, Yemen has stated that it provides certain 
government support for agricultural activities. Pl ease provide more specific information about 
these programs in the supporting table format outlined in WT/ACC/4.  
Answer:  
More details on domestic support of agricultural activities will be provided in document WT/ACC/4. 
Question 82 
Specifically, how does Yemen "encourage agricultu ral production to achieve higher levels of 
food supplies" and what types of programs "enhance rural development and poverty 
alleviation"?  How does Yemen "develop and promote agricultural exports" or "finance the 
infrastructure needed for marketing agricultural products"? 
Answer:  
Yemen encourages agricultural production through rural development projects, and agricultural 
agencies that are in charge of providing  services to farmers, guidance and awareness by training them 
on using modern agricultural techniques, as well as the provision of water projects such as the 
construction of small dams and tanks  for areas that suffer drought with the aim of rain harvesting, and 
the establishment of mini-village plant nurseries as  examples for the development of agricultural 
production in rural areas.  Yemen also implemen ts a number of research, guidance, and credit 
programmes aiming at developing and improving agri cultural production and completing institutional 
infrastructure for production and marketing through en couraging the private sector and small farmers 
to increase their investment in different areas of agricultural, plant, and animal production.  For 
further information please refer to WT/ACC/4.  
Question 83 
In response to Question 93 of WT/ACC/YEM/4, Ye men has stated that loans issued by the 
Agricultural Credit Bank are "subject" to market interest rates.  Does this mean that loans are 
issued only at market rates. Are interest subsid ies or any types of subsidies provided for such 
loans?  WT/ACC/YEM/6 
 Page 31 
 
 
 Answer:  
Loans by the Cooperative and Agricultural Credit Bank are generally issued on the basis of prevailing 
market interest rates.  However, when loans are pr ovided at less than market rates, i.e. in case of 
purchasing agricultural machinery, equipment, and i nputs, the difference is covered through a special 
fund.  Please refer to answer No. 78.  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 1. General Question 84 We are pleased to note that Yemen will review and update its Law on Intellectual Property to 
comply fully with the provisions of the TRI PS Agreement.  However, we would like to know 
what is the timeframe envisaged for said review. 
Answer:
 
An Action Plan for the implementation of the TRIPS Agreement is curr ently under preparation 
including transitional periods and technical assistance needed.  
Question 85 
Following up on Question 102 of WT/ACC/YEM /4, Would Yemen consider acceding to the 
Berne and Paris Conventions as soon as possible?   We note that accession to these conventions 
and incorporation of their provisions into Ye meni law would bring Yemen closer to TRIPS 
compliance and could accelerate Yemen’s WTO accession pace. 
Answer:  
Recognizing the importance of joining these two conv entions, the Government has initially agreed on 
29 November 2004 to accede to the Berne Convention.  Yemen is currently cons idering the possibility 
of joining the Paris Convention.  However, Yeme n needs technical assistance to implement these 
conventions in the context of the TRIPS Action Plan.  
Question 86  
Following up on Question 120 of WT/ACC/YEM/ 4, how does Yemen intend to fully meet the 
obligations of TRIPS Article 3 regarding National Treatment? 
Answer:  
Yemen would like to draw attention to the fact  that Question 120 in doc WT/ACC/YEM/4 is not 
relevant to national treatment. Ne vertheless, Yemen will bring its IP R law in line with Article 3 on 
national treatment. WT/ACC/YEM/6 
Page 32  
 
 2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(a) Copyrights and related rights Question 87 Yemen’s copyright law is not yet TRIPS compliant.  According to WT/ACC/YEM/4, Yemen 
indicates that it will bring its copyright la w into compliance with the TRIPS agreement (see 
responses to Questions 106, 107, 108).  Please let us know when the Government of Yemen 
intends to update its law to provide for a TRI PS compliance copyright regime, pursuant to these 
responses. 
Answer:
 
The Government is in the process of updating its co pyright law in order to comply with the TRIPS 
Agreement, as would be indicated in the IPR Action Plan.  
(b) Trademarks, including service marks 
Question 88 Following up on Question 112 of WT/ACC/YEM /4, how does the Ministry of Industry and 
Trade determine what trademarks might "contr adict public order or morality" and thus be 
ineligible for protection? 
Answer:
 
The Ministry of Industry and Trade identifies trademar ks that might contradict public order or morality 
and thus be ineligible for protection if they involve promoting prohibited products or services, inter alia:  
 - Wine, spirits and narcotics; 
 - Pork products;   - Pig raising and selling its meat to the public;  - Alcoholic drinks services;  
 - Night clubs and gambling casinos; or 
 - A trademark that contains pornographic mate rial, names or statemen ts violating culture, 
or public order. 
Question 89 
With respect to Question 114 of WT/ACC/YEM/4, will Yemen’s proposed new IPR law specify 
factors to determine if a mark is a so-called "known mark?"  WT/ACC/YEM/6 
 Page 33 
 
 
 Answer:  
Yemen will include factors to determ ine if a mark is so called "known mark" in the new IPR legislation 
in line with the TRIPS Agreement.   
(c) Geographical indications 
Question 90 
It is our understanding that Yemen does not currently have intellectual property laws that 
provide for the protection of geographical indications, pursuant to TRIPS Articles 22-24.  To better understand Yemen’s trademark regime and to complete the assessment of its trademark 
laws, we request copies of amendments, implem enting regulations, and/or directives concerning 
trademarks and geographical indications, in particular Decision No. 353 of 1995 on implementation of trademarks regulations. 
Answer:
 
Decision No. 353 of 1995 regarding Trademarks Regula tion will be submitted to  the Secretariat.  
Question 91 
In response to previous questions posed to Yemen by the Working Party (Document 
WT/ACC/YEM/3) in 2000 regarding geographical i ndications, Yemen indicated that it would 
provide protection of geographical indications within the "framework of revising the Law on Intellectual Property Rights."  We are interested to know if there have been any recent 
developments in legislation that would address the protection of geographical indications.  If 
there have not been any developments, what is the timeframe for new legislation addressing geographical indications to be enacted? 
Answer:
 
There are no recent developments regarding the le gislation for protecting geographical indications. 
Yemen is currently developing an  IPR Action Plan to implement the TRIPS Agreement including 
protection of Geographical Indications.  The Action Plan would reflect the timeframe for legislative 
revision, transitional period s and technical assistance. 
Question 92 
Because there are no provisions in Law No. 19 (1994) concerning geographical indications, the 
following questions remain: 
(a) In what way does Yemen provide the legal means for interested parties to prevent the 
use of misleading geographical indication s as required under Article 22 of the TRIPS 
Agreement? Through a trademark system, th rough unfair competition laws, through a 
sui generis system, through an administrative labeling system, or a combination of such 
systems?    In what way does Yemen provide  the legal means for interested parties to 
prevent misleading use of geographical indica tions, which constitutes an act of unfair 
competition within the meaning of Article 10bis of the Paris Convention? 
(b) How does Yemen provide the legal means fo r interested parties to prevent the use of 
false geographical indications used on wines and spirits, as required under Article 23 of 
the TRIPS Agreement? WT/ACC/YEM/6 
Page 34  
 
 (c) What procedures are in place in Yemen for the interested parties or owners of third-
country geographical indications to prevent th e use of foreign geographical indications? 
(d) In what way does Yemen preserve the legal ri ghts of trademark owners, consistent with 
Articles 16(1) and 24(5) of the TRIPS Agreement? It is unclear whether trademarks in 
Yemen would be protected from confusingl y similar and later in time geographical 
indications. 
Answer:
 
(a) Yemen currently provides the legal means for in terested parties to prevent misleading use of 
geographical indications thr ough the trademark system.  
(b) Wines and spirits are not  registered in Yemen. 
(c) Please refer to answer No. 91.  
(d) Yemen IPR law ensures legal pr otection for the owner of a regist ered trademark from confusing 
it with similar trademarks.  Therefore, a trademark similar to those already registered or deposited is not accepted to be  registered.  A trademark that misleads the public regarding the 
source of the product or service is not accepted e ither.  Moreover, the law prohibits others from 
using a trademark without prior consent from its owner.     
(e) Patents 
Question 93 Yemen is a party to the WIPO Convention, but has not joined the Paris Convention, PCT, or 
UPOV. In order to provide feedback in Yemen's WTO accession process, we have reviewed the patent, data protection, and design laws of Ye men.  The 1994 patent law appears inconsistent 
with TRIPS in various respects.  Questions on Ye men's industrial design law were also raised as 
a part of the accession process.  Yemen has indicated in WT/ACC/YEM/4 that it will take our comments into consideration in writing and revising laws.  
With respect to Yemen’s answer to Question 125 of WT/ACC/YEM/4, what are the criteria for 
excluding a patent on the grounds of public order or morality? 
Answer:
 
The same general principle invoked for the non-gran ting of trademark protection is applied for the 
ineligibility of patent protection on grounds  of violation of public order and morality.  
Question 94 
Following up on Question 126 of WT/ACC/YEM/ 4, how does Yemen’s IPR law define "secret 
inventions?" 
Answer:  
Yemen IPR law does not define "secret inventions".  
Question 95 
Does Yemen regard its patent and design laws, e. g., particularly Articles 64, 105, and 120 of 
Law No. 19 (1994), as being in conformity wi th TRIPS Article 3 relating to national 
treatment?  Please explain.  WT/ACC/YEM/6 
 Page 35 
 
 
 Answer:  
Yemen will bring its law in compliance with Article 3 on national treatment.  
Question 96 
We are very pleased to note that in WT/A CC/YEM/4 Yemen indicates that many of our 
questions raised regarding Yemeni patent, design, plant variety, and undisclosed information 
laws will be resolved in Yemen's process of writin g and revising its IPR legislation.  When will 
any new and revised laws be drafted and enacted? 
Answer:  
Please refer to answer No. 84.  
Question 97  
In addition, Yemen would be obligated under TRIPS to make patents available for 
inventions.  Our understanding is that Yemen do es not currently have any mechanism or office 
in place for the grant or registration of patents,  and that patent regulations are in the process of 
being written. In order to facilitate the process of  putting a patent granting system in place in 
Yemen, please provide us with any new draft patent  regulations setting such a system in place. 
Answer:  
Please refer to answer No. 84. 
Question 98  
Do you have any revised or newly drafted laws or legislation pertaining to undisclosed 
information?   
Answer:  
Yemen has no revised or newly draft laws on undisclosed information.   
4. Enforcement  
Question 99 We are unable to determine whether Yemen’s en forcement regime is compliant with the TRIPS 
Agreement.  In order to conduct an analysis, we  will need copies of its enforcement laws.   
Please provide us with official translations of  the following:  Crimes and Penalties Law; and 
Procedures and Civil Enforcement Law. 
Answer:
 
Summaries of the Crimes and Pena lties Law No. 12 of 1994 and Proced ures and Civil Enforcement Law 
No. 40 of 2002 will be subm itted to Secretariat.  WT/ACC/YEM/6 
Page 36  
 
 VI. TRADE-RELATED SERVICES REGIME 
Question 100 As mentioned in WT/ACC/YEM/3, the provision of international telecommunication services 
was made through one company, which we underst and was a joint venture between the General 
Corporation for Cable and Wireless Telecomm unications "public sector" and the British 
Company Cable and Wireless Ltd., and which wa s to end in 2003.  We understand, however, 
that as of 1 January 2004, the international telecommunications service is run by the Yemeni 
Government.  Does this mean the internationa l telecommunications service was not opened to 
competition after the end of the previous joint ve nture? If so, does the Yemeni Government plan 
to allow competition for internat ional telecommunications service? 
Answer:
 
Yes, the international telecommunication service was not opened to competition after the end of the 
previous joint venture. And, Yemen is not cons idering opening the international telecommunication 
service market to competition. At this stage, the objectives of the Ministry of Telecommunications and 
Information Technology for interna tional services are as follows: 
- Complete, develop, and update the infrastructure of TeleYemen  telecommunications 
network; 
- Re-organize TeleYemen and to  upgrade the qualifications of its staff with a view to 
improving and raising the efficiency of  performance and providing the service 
according to the international standards; and 
- Raise the economic value of TeleYemen. 
In order to achieve these objectiv es, a five-year management contract was concluded with France 
Telecom. 
Question 101 
With reference to Yemen’s answers to Quest ions 153-4 of WT/ACC/YEM/4 we would ask 
Yemen to complete the table required by WT/ ACC/5 before submitting their initial offer. 
Answer:  
Yemen will submit its initial offer on services as soon as possible. 
Question 102 
With reference to Yemen’s answer to Questio n 164 of WT/ACC/YEM/4, we request further 
information on why the international telecoms se rvice has reverted to being wholly operated by 
the Government on expiry of the joint-ven ture monopoly (rather than by the further 
involvement of the private sector).  
Answer:  
Please refer to answer No. 100.  WT/ACC/YEM/6 
 Page 37 
 
 
 Question 103 
According to WT/ACC/YEM/3 and bearing in mind that Law No. 31 of 1999 on Regulation of 
Lawyers stipulates that lawyers need to be, inter alia , Yemeni nationals, is there any possibility 
for foreigners to provide legal services.   In other words, do all legal services need to be supplied 
by lawyers or are some of these services open to non-lawyers? 
Answer:  
In principle, all legal services need to be provided by lawyers.   (a) Article 59 of the Law No. 31 of 1999 on regulation of lawyers’ Profession states that services 
related to the submission of claims to, or pl eading before, a court of law are limited to 
Yemeni lawyers and may not be provided by  foreign lawyers unless the following conditions 
are met: 
- They practise these activities through a licensed Yemeni lawyer’s office. 
- They obtain permission for pleading from the Minister of Justice. - They do not plead in more than two cases a year. - Reciprocity is required.  
(b)  Legal consultancy services that do not involve pleading in Yemeni courts can be provided by 
foreign legal service providers provided they operate on a joint venture basis, or through a Yemeni licensed office.   
Question 104 
Does the licence procedure for forei gn auditing companies’ branches or foreign natural persons, 
mentioned in WT/ACC/YEM/3  apply the same conditions as the procedure for Yemeni 
auditors, i.e. based on the reco mmendation made by the Chartered Accountants Certification 
Committee?  If yes, what factors are taken into account by the Chartered Accountants 
Certification Committee?  Can the Ministry go against the recommendation made by the 
Chartered Accountants Certification Committee? 
Answer:
 
Pursuant to the Law on the Regulation of the A ccounting Profession, Yemeni accounting and auditing 
companies are granted licenses to practice if the following conditions are met:   
- The company has to be general partnership; 
- All partners should have a profession’s practise licenses; - The head office of the partnership has to be in Yemen; - The chartered accountant should not be a partner in more than one auditing 
partnership; and 
- The chartered accountant should not practise the profession outside the partnership in 
a private manner or for others. 
Branches of foreign auditing companies or non-Yemeni  natural persons are granted license to practise 
the profession in Yemen, provided they meet the following additional conditions: 
- They practise in partnership w ith Yemeni chartered accountants; 
- The name of the partnership must include the name of at least one Yemeni partner;  WT/ACC/YEM/6 
Page 38  
 
 - The partnership contract must be written in Arabic and documented by the competent 
authority in the presence of the partners; 
- All partners have to be natural pers ons registered in the working chartered 
accountants tables; 
- Foreign partner must be licensed to practi ce the profession in their original countries; 
- One of the managers must be one a Yemeni partner;  
- They present a certified copy of their license to practice the profession in their 
original country along with the company’ s contract and articles of association; 
- The percentage of Yemeni technical staff working in the company should not be less 
than two thirds of the total number of technical staff; and 
- The proportion of the number of the working team of assistants to the licensed 
chartered accountants should not exceed 4:1. 
Furthermore, the Ministry does not have the right to decide against the recommendations set by the 
Chartered Accountants Certification Committee.  
Question 105 
Could Yemen clarify whether Law No. 21 on Islam ic Banks limits foreign shareholding in all 
banks to 20 per cent (or does this restrict ion apply only to Islamic banks)?   
Answer:
 
Article 6 of Law No. 21 of 1996 rega rding Islamic Banks states, that the shareholding of non-Yemeni 
individuals, agencies, institutions, companies or ba nks in the capital of any Islamic bank established 
as per this law may take place provided it does not  exceed 20 per cent of the stated capital.  
This restriction, however, does not apply to commercial banks.  
Question 106 
Could Yemen provide further information on the privatization process in Maritime transport?  
What restrictions (if any) remain on foreign firms participating in this sector? 
Answer:  
Privatization process in maritime transport sector is conducted within the policy framework and law 
governing the privatization process.  Please refer to answers No. 2 and 5. Currently, the only entity in 
maritime transport which is in the process of bei ng privatized is the Ship Dock Yards Company. 
Question 107  
Could Yemen provide information on its policy to wards tourism and its role in the economy?   
Answer:  
Yemen’s tourism policy aims at: 
1.  Preserving the resources and the elements of natural and cultural t ourism and benefiting from 
them in creating a sustainable developed tourism industry. 
2.  Achieving sustainable benefits from t ourism for the national economy and the society 
through: 
 (a) Increasing foreign exchange;  WT/ACC/YEM/6 
 Page 39 
 
 
  (b) Creating new job opportunities; and 
 (c) Developing societies and local areas. 
3. Expansion and diversification of the touris t activities and the capacity of tourist’s services 
through developing tour ist areas and sites.  
4. Developing and improving th e quality of tourism services. 
5. Training and preparation to improve the efficiency of services and the performance of the 
tourism sector. 
6. Strengthening forward and backward  linkages with other economic sectors  
The role of tourism in the Yeme ni economy can be summarized:   
1. In the past 5 years (2000-2004) Yemen receive d an average number of 135,000 tourists per 
year. 
2. The average yearly income from tourism during this period was US$105 million. This 
correlates to: 
- 2 per cent of the country’s GDP for the same period; and 
- 23 per cent of the value of non-oil exports in the balance of payments. 
3. More than 40,000 people are employed in the tourism sector.  
Question 108 
Could Yemen inform us about its policy a nd legislation concerning retail services?   
Answer:  
According to provisions of the Commercial Law No. 32 of 1991, the right to provide retail services is 
limited to Yemeni nationals or Yemeni legal entitie s in which the share of foreign equity does not 
exceed 49 per cent. 
Question 109 
Could Yemen tell us about its policy and legisl ation concerning management consulting and 
related services? 
Answer:  
Management consulting services are subject to the provisions of the Commercia l Law No. 32 of 1991 
and the Law on Regulating Foreign Houses and Co mpanies Representation No. 23 of 1997.  
According to these laws, foreign management consulti ng companies are eligible to set up branches in 
Yemen.  However, foreign equity in local c onsulting companies should not exceed 49 per cent. 
Question 110 
In what sectors does Yemen already allow 10 0 per cent foreign ownership of businesses? 
We understand that a recent amendment to Yemeni investment law requires that ownership for 
certain industries be reserved exclusively for Ye meni nationals.  Which industries are affected 
by the amendment?  WT/ACC/YEM/6 
Page 40  
 
 Answer:
 
The projects in which Yemen allows 100 per cen t foreign ownership of businesses are those 
established in accordance with the Investment Law. 
We are not aware of any amendment to the Investme nt Law that requires the ownership for certain 
industries to be reserved excl usively for Yemeni nationals. 
Question 111 The 2002 Investment Law does not cover some i ndustries.  Which industries are considered 
"industries that harm the environment?"  What is the scope of the reservation for "financial 
trade, importing, wholesale and retail trade? 
Answer:
 
Please refer to answer No. 13. 
Question 112 
In its answer to Question 157 of WT/ACC/YEM/4, Yemen states that Work Permit fees are 
YR 12,000 plus a YR 5,000 vocational training assessment.  What is the basis for the fee? 
Answer:  
According to Labor Law No. 5 of 1995 and the ensuin g  Cabinet decision, an amount of YR 12,000 has 
to be paid as work permit fees which is to cove r the administrative fees a nd  another YR 5,000 which 
goes to the vocational training fund for the sake of  training staff in the private sector.  It s hould be noted 
that the fees are in fact nominal and, in the case of the work permit fee, currently do not cover the 
actual administrative costs.  YR 12,000 at current  exchange rates corresponds roughly to US$ 63, 
while YR 5,000 corresponds roughly to US$ 26. 
Question 113 Following up on Question 158 of WT/ACC/YEM /4, which Yemeni law or laws governs the 
conditions for the participation/involvem ent of foreigners in various professions? 
Which Yemeni laws regulate the criteria (level of education, years of experience, etc.) for 
licensure in various professions?  Are the sa me criteria applied to Yemeni and foreign 
professionals?  Do the organizations responsible for professional licensing publish a list of 
criteria?  If so, where can that material be found?   Please describe the procedures (documents, 
fees, length of processing time) for obtaining the necessary licenses and approvals to provide 
professional services. 
Answer:
 
Laws such as the Lawyers’ Profession Law, the Me dical Professions and Assi sting Medical Professions 
Law, Auditing Accounts Law, etc. determine st andards and conditions for the participation and 
involvement of foreigners in the respective profes sions.  The same criteria for obtaining professional 
licenses are applied to Ye meni and foreign professionals.  The criteria for professional licensing are 
contained in the respective laws a nd/or by-laws and as such are publi shed in the official Gazette.   WT/ACC/YEM/6 
 Page 41 
 
 
 The procedures (documentation, fees, and processi ng time) for obtaining the necessary licenses and 
approvals differ with type of profession. By way of example: Foreign involvement in the accounting 
and auditing profession is subject to the conditions outlined in question (104) above.  The fees are YR 
10,000 for registration and YR 25,000 for obtaining the license while the length of processing time is up to three weeks.  
Question 114 Thank you for the answer to Question 164 in WT/ ACC/YEM/4.  Now that the Government is in 
full control, does Yemen intend to open the int ernational telecommunicati ons service market to 
competition?  Does Yemen intend to include te lecommunications commitments in its services 
offer?  Has Yemen explored implementing th e "Reference Paper" on telecommunications 
services? 
Are there any foreign equity limitations in telecommunications? Currently, TeleYemen, and the Public Telecommuni cation Corporation, provide local Internet 
services.  Does Yemen allow purchase of goods by the internet?  Does Yemen plan to expand the 
number of ISPs? 
- Are there any restrictions on fo reign satellite providers to Yemen? 
- Are there any government restrictions on  technology for mobile telecommunications 
services? 
- What is the status of your telecommunications regulator? 
Answer:
 
For Yemen’s policy regarding interna tional telecommunications services, please refer to the answer to 
Question 100. 
For possible future commitments by Yemen in this sector, please refer to Yemen’s initial offer on 
services.  Please note that thus far, Yemen has not considered im plementing the Reference Paper on 
telecommunications services. 
Foreign participation in the telecoms sector :  
- National telecommunications services (PSTN) are an exclusive service undertaken by 
the Public Telecommunications Corporation. 
- International telecommunications services ar e an exclusive service undertaken by the 
Yemen International Telecommuni cations Company (TeleYemen). 
- Mobile telecommunications services are open for foreign participation. - International mobile personal telecommunications services via satellites (GMPCS) 
are open for foreign participation.     
Internet services
: 
- Pursuant to the provisions of the Cabine t Decision No. 4 of 2001, licenses are granted 
for internet service providers to establish, operate, and run internet services in Yemen 
on competitive basis provided that they rent the national and international transmission 
links from the Public Teleco mmunications Corporation. 
There is no specific legislation on electronic commerce.  As a consequence, there are currently no 
specific legal restrictions on the purchase of goods via the internet.  WT/ACC/YEM/6 
Page 42  
 
 Satellite services:
  
International telecommunications services via sa tellites are an exclusiv e service of the Yemen 
International Telecommunicatio ns Company (Tele Yemen): 
- National telecommunications services via sa tellites are an exclusive service to the 
Public Telecommunications Corporation; 
- The Ministry of Telecommunications and In formation Technology gr ants licenses for 
the availability of private telecommunica tions services via satellites for some 
organizations such as embassies and oil exploration companies; 
- The Ministry of Telecommunications and Information Technology allows the use of 
dishes only for receiving si gnals (via satellites) for the internet service; and 
- The Yemeni Government allo ws the use of dishes for receiving signals only (via 
satellites) for radio and TV programs. 
The systems for mobile telecommunic ations, no general restrictions curr ently apply.  At present there 
are three companies operating two systems for mobile telecommunications in Yemen, namely GSM and CDMA. 
The Ministry of Telecommunications and Inform ation Technology is responsible for policy and 
regulating affairs for the telecommunications sector.   
Question 115 
Thank you for your answer to Question 161 in WT/ACC/YEM/4.  We are wondering if Yemen 
has given further thought on the question of to wh at extent Yemen intends to allow foreign legal 
consultants to provide legal services, includi ng advice on domestic and foreign law? 
Answer:
 
Please refer to Yemen’s initial offer on services. 
Question 116 
Thank you for your answer to Question 162 in WT/ACC/YEM/4 regarding the process through 
which a foreign bank applies for CBY authorizat ion to provide banking services in Yemen.   
(a) Please advise how Yemeni law defines the terms "branch" and "office."  How do those 
definitions conform to the financial serv ices definitions found in the GATS?   
(b) What is the "designated capital" that must be transferred to open the office or branch?  
Is this amount fixed in law, or negotiated?   
(c) Who determines the "suitability of the office  premises for rendering banking services to 
the public?"  What are the criteria for such determination?   
(d) Are foreign owned-banks treated the same as domestic ones? Is there any scope of 
business limitations on foreign banks in either traditional or Islamic banking? 
(e) Are there foreign equity limitations for Islamic banking? If so, what is the rationale? (f) Can a foreign institution acquire a local bank already established in Yemen?  Are there 
limits established on foreign shareholding in a Yemeni institution? 
Answer:
 
(a) A foreign branch undertake s traditional banking businesses such as accepting deposits, 
loans, money transfer, issuing guarantees, and th e like; an office, on the contrary, does not  WT/ACC/YEM/6 
 Page 43 
 
 
 enjoy such advantages. Yemen thinks that the use of these terms in Yemeni law and 
practices is in not contradictory to GATS. 
(b) The designated capital that must be transferred to open a branch is not less than six billion 
Yemeni Riyals (YR 6,000,000,000), which at current rates corresponds to around 
US$ 30,000,000. The same requirement applies to  local banks and this amount is fixed.  
(c) Pursuant to the by-law of the Banks La w , the Central Bank of Yemen determines the 
suitability of the office or branch premises according to the following criteria: 
i) Headquarters must be located on a main street within a city; 
ii) Headquarters has to have a fully protected room to safe keep national, foreign money 
and documents; and 
iii) Headquarters must be properly equipped for banking services. 
(d) Foreign owned-banks are equa lly treated with local banks. There is no limitation on the 
scope of business operations on foreign banks either in traditional or Islamic banking. 
(e) The limitation on foreign equ ity for Islamic banking is repr esented in the ownership of non-
Yemeni individuals, agencies, establishments , companies or banks by a percentage not 
exceeding 20 per cent of the stated capital of the bank. The rationale is to encourage 
Yemeni nationals to participate in banking practice and ownership.   
(f) Foreign institutions can acquire a local bank already established in Yemen with equity limit 
of 10 per cent, as per the Law No. 38 of th e year 1998 on banks which does not allow one 
natural of juridical person to own more than  10 per cent of any bank’s capital.    
Question 117 
Thank you for your answer to Question 163 in WT/ACC/YEM/4 regarding the offshore 
purchase of insurance by Yemeni nationals.  Please clarify what is meant by the sentence 
"Yemeni Law No. 37/1992 on Supervision and Monitoring of Insurance Companies and Brokers allows the purchasing of insurance offs hore with the prior approval of the Minister of 
Industry and Trade for a maximum of 50 percent of the value of each transaction." 
Can you confirm that foreign owned insuranc e and re-insurance companies can invest in 
Yemen with up to 25 per cent equity in the insurance company? 
Do state owned insurance companies receive an y benefit from government ownership, such as 
exemption from taxes, compulsory cession s, or monopoly over certain product lines? 
Answer:
 
Yemeni nationals are allowed to purchase insurance offshore with the approval of the Minister of 
Industry and Trade, when local insurance companies are not able to provide the required coverage, for 
a maximum of 50 per cent of the total coverage.  
According to the Law No. 37 of 1992 and its amen dments by Law No. 9 of 1997, foreign equity 
participation in insurance a nd re-insurance companies is limited to 25 per cent. 
State owned insurance companies do not receive an y benefits through gove rnment ownership, nor 
they hold monopolies over certain product lines. 
__________