RESTRICTED  
 WORLD TRADE  
ORGANIZATION  WT/ACC/YEM/10 
22 May 2006 
 (06-2468) 
Working Party on the 
Accession of Yemen Original:   English 
 
 
  
ACCESSION OF YEMEN 
 
Additional Questions and Replies
 
 
  The following submission, dated 12 May 2006, is  being circulated at the request of the 
Delegation of the Republic of Yemen.  
 
_______________ 
 
 
   WT/ACC/YEM/10 
 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  
- Pricing policies ............................................................................................................... ...........1  
- State ownership and privatization...........................................................................................2  
(d) Foreign and domestic in vestment policies ..............................................................................7  
(e) Competition policies........................................................................................................... .....12  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES .........................................13  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................17  
1. Import Regulation.............................................................................................................. .....17  
(a) Registration requirements for engaging in importing.........................................................17  
(b) Characteristics of national tariff ...........................................................................................20  
(c) Tariff quotas, tariff exemptions.............................................................................................21  
(d) Other duties and charges, specifying any charges for services rendered ..........................22  
(e) Quantitative import restrictions............................................................................................24  
(h) Customs valuation.............................................................................................................. .....28  
(j) Pre-shipment inspection ........................................................................................................ .30 
(k) Application of internal taxes on imports...............................................................................31  
(l) Rules of origin ................................................................................................................ .........31  
(m,n,o)  Anti-dumping, countervailing duty, and safeguard regimes ..............................................32  
2. Export Regulation.............................................................................................................. .....33  
(f) Export financing, subsidy and promotion policies...............................................................33  
(h) Import duty drawback schemes ............................................................................................34  
3. Internal policies affecting foreign trade in goods.................................................................34  
(a) Industrial policy, including subsidy policies.........................................................................34  
(b) Technical regulations and standards ....................................................................................35  
(c) Sanitary and phytosanitary measures...................................................................................37  
(d) Trade-related investment measures ......................................................................................39  
(e) State-trading practices........................................................................................................ ....39  
(f) Free zones ..................................................................................................................... ...........40  
(l) Government procur ement practices......................................................................................41  
(m) Regulation of trade in transit................................................................................................. 41 
4.  Policies affecting foreign trade in agricultural products.....................................................42  WT/ACC/YEM/10 
Page ii  
 
  (b)
 Exports........................................................................................................................ .............42  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................43  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................43  
(a) Copyright and related rights, including rights of performers, producers of 
phonograms and broadcasting organizations.......................................................................43  
(b) Trademarks, including  service marks...................................................................................43  
4. Enforcement .................................................................................................................... ........44  
VI. TRADE-RELATED SE RVICES REGIME .........................................................................45  
TRANSPARENCY ................................................................................................................... ...........46  
  WT/ACC/YEM/10 
 Page 1 
 
 
 I. INTRODUCTION 
Question 1 Referring to paragraph 5 of the Factual Summary , we thank Yemen for identifying a need for 
transition periods to implement WTO Agreeme nts on Customs Valuation, TRIPS, SPS, and 
TBT.   We welcome receipt of Yemen's action plan for implementing the TRIPS Agreement and 
will provide comments on it later.  We look fo rward to receiving in the future Yemen's action 
plans to implement the customs valuation, SPS, and TBT agreements.  We are pleased to be 
providing technical assistance towards the deve lopment and implementation of these action 
plans.  
Answer
: 
With regards to the Customs Valuation Agreement,  Yemen currently applies the customs valuation 
system according to the Brussels definition of valu e. Yemen will move to the application of the 
provisions of the WTO Customs Valuation Agreement.  This requires a transitional period of seven 
years.  An action plan for the implementation of th is agreement and the technical assistance needed in 
this regard will be sent later. 
Please find also circulated in documents WT/ACC/ YEM/13, WT/ACC/YEM/16 an action plan for the 
implementation of the SPS Agreement and TBT Agreem ent as well as the related technical assistance. 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
2. Economic Policies (a) Main directions of the ongoing economic policies - Pricing policies 
Question 2 
Paragraph 29 of the Factual Summary indicat es that Yemen "monitors" the prices of oil 
derivatives, water, electricity, and fixed telepho ne services to ensure provision of these products 
to the general public and, in particular, to  the poor and lower-income segments of the 
population.   What does this mean?  Do all consumers pay the same prices for these products? 
Answer
: 
The government determines the prices of goods and services it provides with a view of 
accommodating the living conditions of the people.  Thus, some products are subsidized such as oil 
derivatives, while others are sold with very sma ll profit margin.  Moreover, all consumers pay the 
same prices for these products. 
Question 3 
Paragraph 30 of the Factual Summary stated that  "Products often (emphasis added) sold with 
price ceilings or administered prices below international prices were petrol…, diesel…, kerosene…, and Liquified Petroleum Gas (LPG)… "  Are these products ever sold at market 
price?  If so, what entities may sell these products at market price?  Has the government imposed price ceilings on other products?  What  is the process for imposing price ceilings or 
administered prices? WT/ACC/YEM/10 
Page 2  
 
 What law gives the government the authority to control prices?    
Answer
: 
Yemen adopts the free market system.  Thus, the Government practices no control over prices of 
goods and services provided by the private sector.  However, some Government agencies determine the prices of some goods and services which they provid e such as electricity and water, with a view to 
accommodate the living conditions of people.  
Question 4 
Paragraph 30 of the Factual Summary:  We note  that Yemen is review ing pricing policy for 
petroleum products.  We would appreciat e being kept update on developments. 
Answer
: 
As a result of the review of the pricing policy fo r petroleum products, the government, in July 2005, 
decreased the subsidies on some petroleum produc ts which resulted in the following changes in 
prices:  
Product Old price New price 
Diesel  17 Riyals per litre  35 Riyals per litre 
Kerosene  16 Riyals per litre  40 Riyals per litre 
LPG  205 Riyals per cylinder  410 Riyals per cylinder 
Gasoline  35 Riyals per litre  60 Riyals per litre   
 - State ownership and privatization 
Question 5 Paragraph 27 of Factual Summary :  Could Yemen give detailed explanation of the activities and 
special competencies and rights of the 100 per cent State-owned companies Yemen General 
Company of Oil and Gas, The Yemen Oil Company, the Aden Refinery Company and the Yemen Refinery Company. 
Answer
: 
The Yemen Oil Company, the Aden Refinery Co mpany, and the Yemen Refinery Company are a 
group of companies owned by one holding company,  "The Yemen General Co rporation of Oil and 
Gas."  Its main competences and ac tivities can be summarized as follows: 
- Setting up establishments related to industrial operations of oil and gas and to petrochemical 
industries, supervising and controlling the management of these establishments; 
- Exploring oil and gas, refining oil, processing gas, providing the local market with the needs 
of oil products, as well as marketing and exporti ng the crude oil and its refined products; and 
- Proposing standards related to oil and g as industries, and assessing their conformity. 
The holding company has exclusive rights in the areas of its activities, and enjoys full exemption from 
customs duties and taxes. 
   WT/ACC/YEM/10 
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 Question 6 
Could Yemen give exact amounts of State shareholdi ng in the companies listed in Table 3 of the 
Factual Summary?   
Answer : 
Table 3:  State-owned Enterprises  
(wholly or partially owned) (based on the best information available) 
A. 100 per cent Ownership 
Enterprise State shareholding Capital Supervising agency/ 
ownership 
Public Telecommunication 
Corporation 100%  Ministry of 
Telecommunication  
Public Corporation of Water 
and Sewage  100%  Ministry of Water and 
Environment  
Public Electricity Corporation 100%  Ministry of Electricity  
Public Cement Manufacturing and Marketing Corporation 100% 400 Million Riyals Ministry of Industry and 
Trade 
Public Textile and Spinning Manufacturing Corporation 100% 200 Million Riyals Ministry of Industry and 
Trade 
Yemen Insurance and Re-Insurance Company 100%  Ministry of Finance  
 
B. 50 – 100 per cent Ownership 
Enterprise State shareholding Capital Supervising agency/ 
ownership 
Yemen International 
Telecommunication Company (TeleYemen) 95%  Ministry of 
Telecommunication 
Marib Poultry Company 68% 190 Million Riyals Ministry of Industry and 
Trade, Government 
share is currently under privatization.  
Yemen Airways  51%  Ministry of 
Transportation  
The Yemen Bank for 
Reconstruction and Development  51% 1250 Million Riyals Ministry of Finance  
Yemen Libyan Holding 
Company 50% 50 Million USD Yemen Libyan Holding 
Company 
 
C. Less than 50 per cent Ownership 
Enterprise State shareholding Capital Supervising agency/ 
ownership 
Yemeni Kuwaiti Real 
Estate Development 
Company 42% 276 Million Riyals Yemeni Kuwaiti Real 
Estate Development 
Company 
National Tobacco and Matches Company 41.5 % 600 Million Riyals Ministry of Industry and 
Trade 
Saba Insurance 
Company 9% 100 Million Riyals  WT/ACC/YEM/10 
Page 4  
 
 Enterprise State shareholding Capital Supervising agency/ 
ownership 
Marib Insurance Company 37% 100 Million Riyals The Yemen Bank for 
Reconstruction and 
Development  
Arab Insurance 
Company 4% 100 Million Riyals  
 
D. Companies that have been privatized 
Aden Hotel (Aden) Privatized 
26 September Hotel (Aden ) Privatized 
Al-Hilal Hotel (Aden ) Privatized 
Ardh Al-Ganateen Hotel Privatized   
Thala Hotel Privatized  
Public Poultry Corporation (Aden)  Liquidated  
Rosaba Farm Privatized  
Fruits and Vegetables Corporation Liquidated  
National Shipping Company Privatized  
Yemen Navigation Lines Company Identified for liquidation  
Yemen Investment and Finance Company Liquidated  
 
Question 7 
Yemen has stated that it has no fixed timetable for the completion of its privatisation processes 
(paragraph 28 of the Factual Summary).  We would be grateful if Yemen could keep the 
Working Party informed of any future developments in this area. 
Answer : 
Please refer to the table in Question 6 for an update on the issue.  Yemen will keep the Working Party 
updated of any future development in this area.  
Question 8 We thank Yemen for listing the companies wh ich the government wholly owns and the 
State-owned enterprises in Table 3 of the Fa ctual Summary in which it has more than a 
50 per cent share.  Yemen has also stated that it does not consider the State-trading entities 
(paragraph 102 of the Factual Summary) subject to Article XVII of the GATT or the understanding on the interpretation of Article XVII.  We would appreciate clarification from 
Yemen on how it draws this conclusion. 
Answer
: 
Yemen believes that the practices of the State-owne d companies (referred to in Table 3 of the Factual 
Summary) are not inconsistent with Article XV II of GATT 1994 as the said enterprises do not enjoy 
any special or exclusive rights and they oper ate on equal footing with the private sector.  
Question 9 We seek advice as to whether Yemen's agricultural cooperatives have been granted any 
exclusive or special rights or privileges.  WT/ACC/YEM/10 
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 Answer : 
Agriculture cooperatives have no excl usive or special rights or privile ges other than exemptions from 
customs duties on agricultural inputs; such exemptions are not provided to any specific product, but to all agricultural products.  
Question 10 
What law governs the operations of State-owned enterprises?   Answer
: 
The law governing the operation of State-owned ente rprises is the Law No. 35 of 1991 "On Public 
Authorities, Corporations and Companies", amended by Law No. 7 of 1997.  Furthermore, some State-owned enterprises are governed by the decree of its establishment which clearly defines their 
mandate, operations, structure, etc.   
Question 11 
What Ministries own the State's shares in the enterprises listed in paragraph 27 and Table 3? 
Answer
: 
Please see answer to Question 6. Question 12 Who appoints the Boards of Directors of the en terprises identified in paragraph 27 and in 
Table 3? 
Answer
: 
The respective decree under which a public enterp rise is established stipulates the mechanism of 
appointing the board of directors.  However, as a ge neral rule, the chairman of the board is appointed 
by the President or the Prime Minister, wh ile other members are appointed according to 
shareholdings.  For instance, if the enterprise is wholly owned by the government, all members of the 
board of directors are appointed by the President or the Prime Minister.  In the case of joint ventures, members representing the government are appointed  by the above mechanism, while members 
representing the private sector are elected by  the members of the general assembly.  
Question 13 How do enterprises identified in paragra ph 27 and Table 3 make purchases of goods and 
services? 
Answer
: 
As a general rule, enterprises wholly owned by  the government purchase their goods and services 
through public tendering.  Enterprises jointly owne d by the government and private sector operate 
freely concerning their purchase of goods and services.  WT/ACC/YEM/10 
Page 6  
 
 Question 14 
Does Yemen have a bankruptcy law? 
Answer
: 
Yemen has no separate bankruptcy law.  However, the issue of bankruptcy is dealt with under the 
provisions of the Commercial Law No. 32 of 1991 (Articles 570 through 823).   
Question 15 Do the State-owned enterprises identified in paragraph 27 and Table 3 face private sector 
competition?  Please identify the sectors, if any, in which the State retains a monopoly. 
Answer
: 
Except for a few enterprises that maintain a monop oly which are: the Public Telecommunication 
Corporation (monopoly over fixed telephone services  only), Yemen International Telecommunication 
Company TeleYemen (monopoly over internati onal telecommunication services), General 
Corporation of Water and Sewage  System (monopoly over water and sewage services), and the Public 
Corporation for Electricity (monopoly over electricity production and distribution), the remaining enterprises operate on free market basis.  
Question 16 Please expand Table 3 to include information on  the size of these companies in terms of 
capitalization and employment. 
Answer
: 
Please see answer to Question 6. 
Question 17 
What is the percentage of GDP, imports, and exports attributable to State-owned enterprises? Answer
: 
The role of State-owned enterprises in the economy  is limited, and there are no specific data with 
regards to their contribution to the GDP.  Howeve r, the State-owned industrial enterprises roughly 
form only 1.2 per cent of the total number of indus trial establishments in the country and contribute 
around 10 per cent of the industrial sectors share of the GDP in 2005.  
Question 18 
What plans, if any, does Yemen have to privatize the companies identified in paragraph 27 and 
Table 3? 
Answer : 
There is no specific plan to privatize enterprises listed in Table 3.  However, as indicated in the table 
reproduced in Question 6, some of these enterprises ha ve already been privatized while others are still 
in the process of being privatized.   WT/ACC/YEM/10 
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 (d) Foreign and domestic investment policies 
Question 19 Please describe the process through which an in vestor claims the incentives described in 
paragraph 19 of the Factual Summary. 
Answer
: 
Tax exemptions stipulated in Artic le 20 paragraph (a) Items 1, 2, 4 and Article 21 of the Investment 
Law are provided according to the following procedures: 
(i) Upon completion of the installation of the proj ect's assets the investor notifies the Authority 
thereof.  Equally, the investor notifies the Authority of the commencement of production activities or the rendering of his services.  The notification concerning the commencement of 
business activities has to occur prio r to the placement of any of the products or services into 
the market;   
(ii) The investor submits an application of the re quested exemptions and all proofs of the project's 
eligibility according to the law within 90 days from the beginning of the production or 
practicing activities; 
(iii) The authority has the right to inspect th e project, its records and assets to ensure the 
availability of the necessary conditions  for the requested exemption; and 
(iv) The authority issues the tax exemption certif icate within 60 days from receiving the requested 
documents. 
Question 20 
The following questions refer to pa ragraph 20 of the Factual Summary: 
1. Please describe the process of registering an investment with the General Investment 
Authority. 
2. What criteria does the General Investment Authority require to register an investment? 
3. Do Yemeni citizens and foreigners who want  to invest go through the same procedures 
to register their investment? 
4. Are there capital requirements to establish a company?  If so, what are they? 
5. In its response to Question 14 in WT/ACC/YEM/6, Yemen states that the described 
mechanism by which Yemen increases its ta riff (proposed by the General Investment 
Authority and then ratified by the House of Re presentative) has never been used.  If this 
is the case, could Yemen explain how the pro cess of increasing tariffs takes place at the 
present time? 
Answer
: 
1. The process of registering an investment project is as follows:   - The investor submits the registration request of the investment project to the 
designated department in the General Investment Authority accompanied with the following documents:  
 (a) an ID of the project's owner or passport for the foreign investor and the 
personal ID of the authorized person in the case of a power of attorney; WT/ACC/YEM/10 
Page 8  
 
  (b) an endorsed power of attorney from the relevant authorities in case someone is 
in charge of the procedures of registering the investment project on behalf of the investor; 
 (c) the commercial register of the company or establishment;  (d) the contracts of establishing the project endorsed by the relevant authorities; 
and 
 (e) the project layout and designs. 
 - the chief of the relevant sector examines the investment application and all the 
attached documents and receives them from the applicant and records the date of 
receiving them and gives the investor a receipt; 
 - the chief of the sector reviews the appli cation and review the list of the project's 
requirements from the assets, spare parts and manpower according to the provisions of the law; 
 - the chief of sector makes a field visit to the site of the project to make sure of its 
suitability.  The report of this visit is a dded to the documents of the project at the 
sector; and 
 - the chief of sector consults the relevant au thority which is in charge of the respective  
economic activity. The relevant authority then has to make a decision of whether 
approving or rejecting the project within 15 days.  
2. To apply for the General Investment Authority registry of an investment project, the 
following conditions are required: 
 (a) The project should be covered by the Investment Law; 
 (b) The value of the project assets should not be less than YR 50 million or its equivalent 
in other foreign currencies (the value of  buildings and lands are not included); 
 (c) The project should comply with the t echnical standards and disciplines applicable 
which vary according to the nature of the project;  
 (d) The investor should commit to execute th e project according to the specified plan in 
the project registering certificate; 
 (e) The project should have no negative impact on the environment. 
3. Yes, foreign investors and Yemeni citizens go th rough the same procedures to register their   
investments.  
4. The capital requirement differs according to  the type of the company established. For 
instance, for limited liability companies the cap ital requirement is YR 3 million, for closed 
joint stock companies the capital requiremen t is YR 15 million while for joint stock 
companies the capital requirement is YR 50 million.  
5. Yemen has not yet applied the provisions of  Article 24 of the Investment Law of 2002. 
 As for the mechanism of amending any tariffs (increase or decrease), it is as follows: 
 - The Tariff Council suggests the amendment; 
 - The suggestion is presented to the Cabinet; and  - The proposed suggestion is submitted to the Parliament and then enacted into a law 
by the president.   WT/ACC/YEM/10 
 Page 9 
 
 
 Question 21 
Paragraph 17 Factual Summary:  Yemen lists sect ors which are not covered by the Investment 
Law No. 22/2002 but separate laws.  Could Yemen briefly explain, sector by sector, what is the investment regime applied to these sectors and wh ether there are restrictions or limitations for 
foreign investors in these sectors?  The sectors me ntioned in paragraph 17 are:  investment in 
natural resources, financial institutions, whol esale and retail trade, telecommunications, 
insurance sector, exploration and extraction of minerals.    
Answer
: 
Investment in the areas mentioned in the question is subject to the following:  
- Exploration and extraction of oil and gas is governed by "special agreements" signed between 
the Government, represented by the Ministry  of Oil and Minerals and the respective 
companies. Investments in oil and gas explora tion and extraction of minerals are subject to 
the Mines and Quarries Law No. 24 of 2002; 
- Banks, exchange bureaus and financial compan ies are governed by the 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 am endments to the Financial Exchange Law 
No. 15 of 1996.  Foreign equity is limited to  45 per cent for commercial banks, 20 per cent for 
Islamic banks; 
- Retailing and wholesaling is governed by the Commercial Law No. 32 of 1991 and its 
amendments by Law No. 6 of 1998.  Foreign equity is limited to 49 per cent; 
- Telecommunication is governed by Law No. 38 of 1991 on Wired and Wireless 
Telecommunications.  Existing mobile projects have benefited from incentives accorded by 
the Investment Law; and 
- Insurance service is governed by Law No. 37 of 1992 on the Supervision of and the Control 
over Companies and Insurance Agents, and the respective amendments by Law No. 9 of 1997.  Foreign equity is limited to 25 per cent.  
Question 22 Are there any further sectors that are subject to separate legislation and not the Investment 
Law?  If yes, please provide clarification of the investment regime applied to them. 
Answer
: 
Investment in the Free Zones is governed by the Law "On the Free Zones" No. 4 of 1993. 
Question 23 
Paragraph 19 of the Factual Summary, Question 10 of WT/ACC/YEM/6:  Yemen explains that 
tax exemptions to investment projects are granted for 7 to 16 years, depending on the location of 
the investment project, the local component of fi xed assets and the percentage of shares held by 
Yemeni nationals in joint stock companies. 
We note that these provisions indicate continge ncy of local contents and discrimination against 
foreign investors, if tax exemptions are grante d for longer periods for investments under these 
conditions.  We therefore urge Yemen to abolish such criteria from its investment incentive regime.  We also note that there is no exemptio n for LDCs from the prohibition of local content 
subsidies under Article 27 ASCM, only export  subsidies are allowed (Annex VII ASCM). WT/ACC/YEM/10 
Page 10  
 
 Answer
: 
This article does not stipulate any discrimination be tween local and foreign in vestors as it accords the 
incentive to both local and foreign investors.  Due to the importance of encouraging the use of local 
materials and equipment which is going to posit ively reflect on the process of developing and 
increasing the local production, Yemen seeks its tr ade partners' understanding in that respect.  
Furthermore, the Decision of Ministers at the 6th WTO Ministerial Conference in Hong Kong allows 
LDCs to use local content measures.  
Question 24 
Referring to Question 11 of WT/ACC/YEM/6: Could Yemen list exclusively all sectors 
prohibited under the Shari'a.  It is understood  that the three areas mentioned – gambling and 
night clubs, swine products and alcohol beverages - are only examples (" inter alia "). 
Answer : 
There is no exclusive list of sectors/products that are considered contrary to the Sharia.  However, the 
general rule is that anything that contradicts pub lic morals and Islamic values is deemed to be 
contrary to the Sharia'a.  
Question 25 Referring to Question 13 of WT/ACC/YEM/6:  Co uld Yemen list exclusively the industries that 
are considered to harm the en vironment?  Are these sectors wh ere investments are prohibited?  
If not, what is the investment regime applied to them? 
Answer
: 
There is no exclusive list of industries that are c onsidered to harm the environment.  Investment 
proposals are screened in this respect on an indivi dual basis based on their environmental impacts.  
However, Yemen in this regard usually applies international agreements on the protection of the 
environment.  
Question 26 
Paragraph 17 of the Factual Su mmary:  We note that Yemen's Investment Law does not cover 
certain activities which are contrary to Shari'a La w, including in natural resources.  We would 
be grateful if Yemen could provide further info rmation on how investment in natural resources 
is regulated. 
Answer : 
Investment in natural resources is not covered by th e Investment Law; it is regulated according to the 
terms and conditions of the bilate ral agreements between the Government and the company making 
the exploration of natural resources in Yemen.  
Question 27 
We note reference to customs duty/tax exemptions to Yemen investors being dependent on 
"local consumption in fixed assets."   We seek clarification of the meaning of "fixed assets" and whether any incentives are made conditional upon the use of domestic goods over imported 
goods.  WT/ACC/YEM/10 
 Page 11 
 
 
 Answer : 
Fixed assets are the machinery, instruments, equipment,  supplies, and spare parts needed to establish, 
expand or rehabilitate a project including buses especia lly designed to transport tourists, vessels for 
maritime transport and fishing and furniture and fu rnishing for hotels and hospitals whether imported 
or locally manufactured or produced.  The use of locally produced fixed assets amounting to at least 
25 per cent of the total fixed assets of the project en titles the project to enjoy two additional years of 
tax exemption. 
Question 28 
Paragraph 17 of the Factual Summary JOB( 05)/172: In Yemen's view are measures for 
"Production Sharing Agreements" or "Special Agreements" consistent with the provisions of 
the WTO Agreement on Trade-Related Investment Measures? 
Answer : 
Yemen believes that the production sharing agreements  or special agreements  are not inconsistent 
with the provisions of TRIMs.  Such types of agreements do not fall under any of the measures articulated in the TRIMs agreement nor, for that ma tter, raise concerns under any WTO agreement.  It 
should be noted, in addition, that such agreements are widely applied by countries around the world.  
Question 29 
Paragraph 18 of the Factual Summary JOB(05)/172:   In reference to Yemeni Investment Law, 
which "guarantees that investment projects woul d not be nationalized and that investments 
would not be confiscated by any decision other th an judicial order", could Yemen please specify 
if foreign investors would be entitled to the same  compensation as offered to domestic investors 
in issues concerning indirect or direct expropriation? 
Answer
: 
The Investment Law No. 22 of 2002 states that Arab and foreign capital and investors shall be on par 
with Yemeni capital and investors in all rights, ob ligations, rules and procedures set forth in the law 
and the decrees and regulations enacted in the execu tion thereof.  Therefore, foreign investors are 
entitled to the same compensation as offere d to domestic investors in all issues. 
Question 30 
Paragraph 18 of the Factual Summary JOB(05) /172:  Yemeni Investment Law contains 
language relating to "the freedom of investors to manage their projects", could Yemen please 
outline it's regulations on the entry of personne l and senior officials employed by the investor? 
Answer : 
The Investment Law No. 22 of 2002 states that "p rojects may recruit non-Yemenis in accordance with 
their requirement list and are entitled to obtain wo rk permits and residence visas for such personnel 
for a three-year period renewable upon a recommendation of the Authority."  Also investors have the right to manage their projects by themselves.  WT/ACC/YEM/10 
Page 12  
 
 Question 31 
Paragraph 19 of the Factual Summary JOB(05)/ 172:  According to the Secretariat's Report, 
"Tax exemptions were accorded to investment proj ects for a period of 7 to 16 years, depending 
on the location of the investment project, the lo cal component in fixed assets, and the percentage 
of shares held by Yemeni nationals in joint stock companies."   Could Yemen provide additional 
information as to the type or amount of "loc al component in fixed assets" required?  In 
Yemen's view, are these local component require ments consistent with the provisions of the 
WTO Agreement on Trade-Related Investment Measures? 
Answer
: 
Investment projects are entitled to two additional years of tax exemption if the local content of their 
fixed assets is not less than 25 per cent of the total fixed assets of the project.  Further, for the purpose 
of the Investment Law, fixed assets means "the ma chinery, instruments, equipment, supplies, and 
spare parts needed to establish, expand or rehabilita te a project including buses especially designed to 
transport tourists, vessels for maritime transport and fishing and furniture and furnishing for hotels 
and hospital whether imported or locally manufactured or produced."  With regards to the consistency 
with the TRIMs Agreement, Yemen believes that th is condition is not fully consistent with the 
Agreement; however, Yemen seeks its trade partners' understanding in that respect as it is important 
for the promotion of using locally fixed assets.  Further, the Decision of Ministers at the 6th WTO 
Ministerial Conference in Hong Kong allows  LDCs to use local content measures.  
Question 32 
Paragraph 22 of the Factual Summary:  Could Yemen provide a list of all international and 
bilateral investment treaties to which Yemen is a signatory?  
Answer : 
Yemen is a party to the following in ternational investment agreements:  
- Islamic Institute Agreement for Inv estment Insurance and Exports Credit; 
- International Convention for the Settlement of Investment Disputes between the State and the 
Nationals of Another State; 
- Islamic Institute Establishment Agreement fo r the Development of the Private Sector; and 
- Investments Promotion and Protection Treaties with Jordan, Tunisia, Morocco, Syria, 
Djibouti, Egypt, Saudi Arabia, Sudan, Algeri a, Oman, Lebanon, Kuwait, Iran, Ethiopia, 
China, Malaysia, Bulgaria, Luxemburg, Bahrai n, India, South Africa, Austria, Belarus, 
Hungary, Eritrea, Pakistan, Turkey, Indonesia, Ukraine, Romania, Russia, Croatia, Mongolia, 
Germany, Italy, Mauritania, Korea, Swed en, United Kingdom, France, and Netherlands.  
(e) Competition policies 
Question 33 Please provide a description of the elements of Law No. 19/1999 that provide authority for the 
government to intervene against monopoly or an ti-competitive behaviour.  We would also 
appreciate a review of the procedures outlined  in the law through which a company or 
individual may file a complaint with the government of anti-competitive behaviour in a market or sector.   Please include a description of how the government would adjudicate the complaint.  WT/ACC/YEM/10 
 Page 13 
 
 
 Answer :  
The current Law on Monopoly and Anti-competitive Beha viour is being reviewed, and there is a draft 
law that has been submitted to the Par liament and is still under consideration.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
Question 34 
We appreciate the information on the judiciary in paragraph 35 of the Factual Summary.  We 
would appreciate a fuller description of th e operation of the court system.   
1. Please describe how criminal cases are pr osecuted in the courts and appealed;  
2. Please describe how civil cases are filed, pr ocessed and adjudicated from hearing in the 
court of first instance through final appeal; and 
3. What is the appeals process for criminal cases?  For civil cases? 
Answer : 
1. Criminal cases are prosecuted in the courts of first instance chaired by an individual judge. 
The ruling can be appealed before an appella te court whose panel is composed of three 
judges. The trial is conducted before the cour t of first instance and the appellate court in 
accordance with the principles and procedures stipulated in the Republican Decree of Law 
No. 13 of 1994 on Criminal Procedures, inter alia: 
 - public trials:  Trials are open to the public unless the court decides that proceedings 
will be held in confidentiality, for reasons  of national security or public morals; 
 - oral proceeding:  in principle all proceeding relay on oral exchanges of facts and 
arguments. In addition, written submissi ons may be admitted by the court;  
 - continuation of trial:  criminal cases ar e prosecuted in continuous and consecutive 
sessions until finalized, unless the conditions of the case require and justify a suspension or delay according to the conditions stipulated in the law; 
 - adversarial principle:  the trial proceeds on the basis of argument and counter 
argument between disputing parties, i.e. pub lic prosecution, plaintiff, and the accused; 
 - equality in the right of evidence:  all parties to a case, including the accused, lawyer, 
plaintiff, etc., are on par in terms of rights and duties; they have the right to submit and discuss evidence, and request to exam ine evidence by experts if the court 
consents; and 
 - after a ruling is decided by the court of first instance, parties to a dispute may appeal 
the ruling before the appellate court.  
2. The Procedure and Civil Enforcement Law No. 40 of 2002 explains the process of filing a 
civil case according to the following: 
 First: Case Processing 
 
 - A case is filed in an original written doc ument with copies for each of the litigants.  
The document must include the specific data  of the case such as the name of the 
claimant and litigant, their addresses, and the subject of the claim. 
 - In the assigned session for considering the claim, the court accepts from the litigants 
the documents which have not been submitte d before and reads their content to the 
litigants.  If the claim conforms to the c onditions, the judge shall ask the litigant for WT/ACC/YEM/10 
Page 14  
 
 reply.  The litigant shall reply with all evidence explaining what he/she denies or 
admits without ambiguity.  The court shall ask the claimant to prove what the litigant denies and hears evidence and witnesses. 
 - Once trial is over or the case under litigati on at court can be decided upon, the court 
shall issue the ruling without delay. 
 Second: Appeal
 
 - A person against whom the ruling of the fi rst instance was issued may appeal within 
60 days.  During the appeal, the case is considered and decided upon once again. 
 - Cassation through appeal at Supreme Court shall take place only if the ruling is based 
on a violation of law or a mistake in its a pplication, the issued ruling of the supreme 
court's in this regards shall be final. 
3. Rulings adjudicated for criminal cases are a ppealed through one of the following methods: 
 - Appeal; 
 - Objection for cassation; and  - Petition for reconsideration. 
The above-mentioned appeal methods are the same for civil cases.  
Question 35 
- How long does it take the courts to  try a case and reach a final decision? 
- Please describe how the commercial courts  operate.  What makes them different from 
standard civil courts? 
- How are civil court decisions enforced in Yemen? 
Answer
: 
- Despite the fact that the procedural laws pr ovide for specified timeframes for each step of 
litigation, it is difficult to specify the period th at the court takes to adjudicate a given case and 
reach a final decision.  The reason is because e ach case has its own facts and circumstances. 
For instance, the court of first instance can tr y a case and reach a final decision in one or two 
sessions, then the case is brought to the appellate court.  A final decision can be reached by 
the appellate court in two sessions at most if the case is clear and its evidence is apparent and 
unambiguous.  In other words, the determinati on of the period depends on the nature of the 
case along with its allegations.  Nevertheless, the law obliges courts not to delay a case on 
trial for more than two sessions for the same re ason.  It also obliges them to reach a final 
decision as soon as possible in case it is ripe fo r a decision, even if not requested by the 
parties to the dispute.  Article 243 of the Civil Procedure and Enforcement Law Provides for 
expedited procedures for cases of special urgency. 
- Commercial courts are specialized courts in charge of claims and disputes of a commercial 
nature. Cases are tried in commercial courts of  first instance chaired by an individual judge 
and adjudicated pursuant to the procedures stipul ated in the Civil Procedure and Enforcement 
Law No. 40 of 2002.  Then, decisions of such courts are appealed before the Commercial 
Appellate Division whose panel consists of thr ee judges.  Judges are selected in the court of 
first instance and appellate court from those who have sufficient experience in the area of 
commercial transactions, and who have already been trained in the area of commercial judiciary.  WT/ACC/YEM/10 
 Page 15 
 
 
  Commercial courts are different from standa rd civil courts in terms of jurisdiction. 
Commercial courts have jurisdiction over case s of commercial nature only, whereas civil 
courts have general jurisdiction to  try all cases except commercial ones. 
- The Civil Procedure and Enforcement Law No. 40 of 2002 entrusts courts of first instance 
with the application of civil rulings and decisions  based on rulings to be applied by force. The 
Law specifies the methods for direct and indi rect enforcement.  The methods of direct 
enforcement are fines, detention and the use of force, whereas the methods of indirect 
enforcement are seizure, receivership and ga rnishment.  The Law obligates the public 
authorities to assist in this enforcement even by force once the judge orders it. 
 The rulings of the civil courts in Yemen are en forced according to the pr ocedures stated in the 
Civil Procedure and Enforcement Law.  They can be summarized as follows: 
 (a) Enforcement is carried out by a request based on a verdict; 
 (b) The judge summons to notify the opponen t of the ruling for execution and instructs 
him/her to voluntarily execute the ruling within one week from the date of the notification and within three days in an urgent case; 
 (c) If the opponent does not execute the ruling within the specified timeframe, the  judge 
may impose a fine of not less than YR 10, 000 and no more than YR 60,000, and 
another period for execution is granted, not exceeding three days.  If the opponent 
still does not execute the ruling, the judge issues a detaining order against him/her; 
and 
 (d) Compulsory enforcement is done through two methods: 
 i. Directly:  in case the subject matter of enforcement is moveable or real estate; the 
execution assistant moves and submits the obj ect of execution or transfers its title 
thereof and submits/confer it on the plainti ff.  A record for such action is written 
to this end; and 
 ii. Indirectly:  in case of garnishment, action is taken through seizure of the 
defendant's assets, then sold to cover th e amount claimed according to the ruling. 
Question 36 
Please describe Yemen's arbitration process as authorized under Law No. 22/1992.  How does 
the government enforce arbitration decisions?  
Answer
: 
Arbitration means that the two parties to a disput e select one or more arbitrator(s) - agreed upon by 
both parties - to arbitrate between them, wit hout having recourse to the competent court. 
Arbitration takes place through any term denoting such action and the arbitrator's consent.  Arbitration 
may not be established unless in writing, nor may it be agreed upon unless in writing whether prior to the dispute or thereafter.  The agreement of arbitrati on shall be considered void if it is not recorded in 
writing or the subject matter of arbitration and the ar bitration panel is not specified.  Such record may 
take the form of a telegram, le tter or any other means of advanc ed communication of documentary 
nature.  Arbitration may take place before or after the start of the dispute according to Article 16 of 
the Arbitration Law on the basis of a separate agr eement (arbitration document) or of a clause in a 
contract (terms of arbitration).  In both cases, the terms of arbitration are considered an independent 
agreement from the rest of clauses.   In case the contract is considered void or terminated, the 
arbitration clause remains valid.  WT/ACC/YEM/10 
Page 16  
 
 The arbitration agreement is binding for both parties,  i.e. it arranges mutual rights and obligations for 
contractors which subject them to settle the dispute through an arbitrator(s).  An arbitration agreement 
may take place prior to or after filing a suit in a court.  The conclusion of an arbitration agreement 
constitutes a waiver by the parties of their rights to  resort to courts for settling the existing dispute 
between them.  
The arbitration panel or the arbitr ator shall hold hearing sessions for oral pleading, hear experts and 
witnesses, and familiarize themselves with anything related to the dis pute in question before reaching 
a decision.  The arbitration panel issues its decision in writing.  
The arbitration decisions are recognized as binding  under Yemeni law and are enforced through 
appellate courts according to Article 58 of the Ar bitration Law.  The appe llate courts may mandate 
courts of first instance for enforcement.  All deci sions of the arbitrator(s) are enforced through the 
same procedures of decisions issued from courts  and the provisions of the Civil Procedure and 
Enforcement Law (see answer to Question 34). 
However, Yemen is currently preparing a new draft law on arbitration based on the model arbitration 
law prepared by the United Nations Commissi on on International Trade Law (UNCITRAL). 
Question 37 How are judges chosen?  What are the qualif ications to be selected as a judge? 
Answer
: 
Judges in Yemen are appointed according to the provisions of the Judicial Authority Law No. 1 of 
1990 which stipulates that anyone to be appointed in judiciary must meet the following conditions: 
(a) Be a Yemeni national; 
(b) Be not less than 30 years of age, and have spent at least two years of judicial training; 
(c) Be a holder of a certificate from the High Ins titute for Judges after having obtained a college 
degree in law from a university recognized by Yemen; 
(d) Good reputation; and (e) Not be subjected to a sentence in a crime. 
The appointment shall take place through a Repu blican Decree based on the nomination of the 
Minister of Justice and the approval of the Supreme Judge Council. 
Question 38 
The answer to Question 15 of WT/ACC/YEM/6 reads  "international agreements ratified that 
are ratified by the House of Representatives and signed by the President are considered part of 
the domestic law." 
- What does this mean?  How are the term s of ratified treaties and agreements 
implemented by the government? 
- Are there any international agreements wh ich are not ratified by the House of 
Representatives and signed by the President ?  If not, how do these agreements become 
domestic law?  WT/ACC/YEM/10 
 Page 17 
 
 
 Answer : 
According to the Yemeni constituti on, ratified international agreemen ts are considered to be an 
integral part of the domestic law.  They are impl emented at the national level by employing the same 
instruments and methods which are applicable fo r the enforcement of all other domestic laws. 
All international agreements requi re ratification by the President.  However, the approval of the 
Parliament takes place prior to the ratification of the President.  In case of international political and 
economic treaties and agreements of general nature regardless of thei r form or level, in particular 
those related to defence, alliance, reconciliation and peace, borders or those which have financial 
consequences on the State or whose implementati on needs the issuance of a law.  In both cases, 
whether approved by the Parliament and the Preside nt (by way of a formal law) or only by the 
President (by way of a decree), Yemen's international ag reements are considered to be an integral part 
of the Yemeni domestic law. 
Question 39 
We would appreciate some clarification on the authority of sub-central governments. 
- What authority do local governments have ov er economic activity in their jurisdictions? 
- Do they have the power to tax?  Do they require businesses operating in their 
jurisdiction to be registered?  Can local governments impose rules or regulations on 
business operations?  Do local governments have  control over land allocation or zoning 
decisions? 
Answer : 
The government does not provide local authorities with powers to impose taxes.  However, sub-
central governments have power over land alloca tion and zoning decisions.  Moreover, certain 
ministries have local or regional offices acting on their behalf to facilitate day-to-day business 
operations, implementing laws and regulations related to the respective ministries. 
IV. POLICIES AFFECTING TRADE IN GOODS  
1. Import Regulation 
(a) Registration requirements for engaging in importing 
Question 40 Paragraphs 39 and 40 of the Factual Summary and Yemen's answer to Question 16 of 
WT/ACC/YEM/6:  We would appreciate Yemen's clarification of how its laws restricting importation to only Yemen nationals, or fo reign companies established in Yemen meet the 
requirements contained in Articles III and XI of the GATT. 
Answer
: 
We still believe that Yemen's laws restricting the importation of goods to only Yemeni nationals or 
companies established in Yemen does not contradict the requirements contained in Articles III and XI 
of the GATT.  However, we would appreciate any e xplanation as to how the relevant Yemeni laws 
would not meet these provisions.  WT/ACC/YEM/10 
Page 18  
 
 Question 41 
Paragraphs 39 and 40 of the Factual Summary (JOB(05)/172) and Yemen's answer to 
Question 16 of WT/ACC/YEM/6:  Please describe the steps required for a foreign company to establish itself as a legal Yemeni Importer in or der to obtain Commercial Registration through 
the General Directorate of the Commercial Regist rar at the Ministry of Industry and Trade. 
Answer
: 
A foreign company could legally be a Yemeni impor ter if it is established as a Yemeni company and 
the foreign share does not exceed 49 per cent.  The co mpany, then, can register using the same steps 
and procedures stated in the answer to Questi on 21 of WT/ACC/YEM/4 as well as Paragraph 40 of 
the Factual Summary JOB(05)/172.  
Question 42 Paragraphs 39 and 40 of the Factual Summary (JOB(05)/172) and Yemen's answer to 
Question 16 of WT/ACC/YEM/6:  Please provide  copies of all documentation required for 
commercial registration. 
Answer
: 
A ministerial decision to register a company is i ssued when the following documents are submitted:  
- For an individual trader:  - A Copy of the ID or the passport; and 
 - Municipal license to operate the business in cluding information ab out the enterprise. 
- For commercial companies: 
- Articles of Association for joint stock, limited liability companies and limited 
partnership, including the name of the company, its purpose, duration, the 
headquarters, the capital and its distribution. 
- Memorandum of Association for the joint stock company, comprising the amount of 
the capital and contribution of shares, board of directors, general assembly, financial 
statement and the method for liquidation. 
Question 43 Referring to paragraph 41 of the Factual Su mmary and Yemen's response to Question 17 of 
WT/ACC/YEM/6, kindly provide detailed information on the services rendered for which the mentioned fixed fees are imposed? 
Answer
: 
Please note that registration fees are very low in absolute figures; they range between YR 10,000 and 
30,000 which corresponds to around between US$ 50 to  US$ 160, according to the current exchange 
rate.  Yemen is currently reviewing these fees to ensure conformity with the WTO provisions.   WT/ACC/YEM/10 
 Page 19 
 
 
 Question 44 
Yemen's policy of requiring an importer to be  a Yemeni resident goes against the fundamental 
right of the WTO to import goods without inv esting in a member country.  Yemen's policy 
needs to be altered to reflect Articles III and XI of GATT 1994.   
Answer : 
Please see answers to Questions 39 and 40. 
Question 45 
We seek further information on the requirements fo r registration of imports.  In particular, we 
would be grateful for information as to how a re municipal licences obtained and the fee charged 
for such licences. 
Answer : 
Please see answer to Question 41.  Please also no te that municipal licenses are business licenses 
which focus on matters like the suitability of the pr emise for the type of the business activity, and are 
not related to importa tion and exportation. 
Question 46 
Can Yemen explain the requirement s for establishing a firm to import, given its statement in 
WT/ACC/YEM/4 that such firms are required to provide "a copy of the Ministerial Decision on licensing the establishing of a firm?" 
Answer
: 
A Ministerial Decision on licensing the establishment of a firm to import is granted by the Minister of 
Industry and Trade once the following requirements are met: 
- Submission of licensing application for the establishment of the import company; 
- Submission of the articles of association and memorandum of association; - Bank certificate for depositing the capital; and - Copies of IDs or passports of the founders. 
Question 47 
We note reference in paragraph 41 of the Factual Summary (JOB(05)/172) to a number of 
registration fees that vary depending on the comme rcial form of the entity.  These fees do not 
appear to be related to the actual cost of  services rendered in administering the act of 
registration.  We seek Yemen's clarification as to why these fees vary. 
Answer
: 
Please see answer to Question 42. Question 48 Paragraph 41 Factual Summary:  We note that the registration fees for imports and exports for 
companies do not seem to reflect the costs of  services rendered.  Because the registration WT/ACC/YEM/10 
Page 20  
 
 requirements set out in paragraph 40 are the sa me for all types of commercial companies, the 
registration fees should also be the same for all of them.  In particular we note that the fee is the 
highest for the agency and branches of a foreign company.  We therefore urge Yemen to bring 
its registration fees in conformity with Article III and VIII of GATT and set them to the level 
that reflects the services rendered regardless of th e nationality of the companies concerned. 
Answer
: 
Please see answer to Question 42. However, Yemen will review the different registrati on fees referred to in Paragraph 41 of the Factual 
Summary to ensure that the fees charged reflect th e approximate cost of services rendered and ensure 
conformity with WTO provisions. 
Question 49 Paragraph 42 Factual Summary (JOB(05)/172): We  note that neither foreign nationals nor 
foreign companies can register as importer or ex porter.  Companies need to be established in 
Yemen or have an agent based in the country in  order to be registered.  We would urge Yemen 
to equalise the treatment of foreign and domestic  nationals and companies as regards the rights 
to be registered as an importer and/or exporter. 
Answer
: 
Please see answers to Questions 39 and 40. 
Question 50 
We also seek clarification as to why there a ppears to be a difference in treatment of Yemen 
citizens and foreign citizens in terms of trading rights for "commercial use."  Can Yemeni 
nationals imports for commercial use? 
Answer : 
Yes, Yemeni nationals can import for commercial use. 
(b) Characteristics of national tariff 
Question 51 
Yemen noted in Question 20 of WT/ACC/YEM/6 that it is preparing a draft amendment to 
bring its custom classification in accordance with HS2002.   
What is the current status of this draft amendment?  What is the specific timeline envisioned for 
implementation of the amendment?  
Answer : 
Currently, Yemen is applying HS 2002.  It is  part of the new Tariff Law No. 41/2005.   WT/ACC/YEM/10 
 Page 21 
 
 
 Question 52 
Paragraph 43 of the Factual Summary: We underst and that Yemen is planning to introduce 
HS2002 instead of its current HS1996 based tariff nomenclature. Does Yemen have a deadline to the legislative amendment for instituting this change? 
Answer
: 
Yemen has already changed its Tariff Law where HS 2002 is now applied.  It is explicitly part of the 
new Tariff Law No. 41/2005. 
Question 53 
Paragraph 43 of the Factual Summary(JOB(05)/172): Could Yemen indicate when will the 
Harmonised System 2002 will be implemented? 
Answer : 
Please see answer to Question 50.  
Question 54 
Paragraph 45 Factual Summary (JOB(05)/172): It is noted that Article 24 of the 2002 
Investment Law indicates that with a view to protecting local production, the Customs tariff 
Committee should impose or increase customs dut y on the imports of goods competing with 
local production that rely on local material on its production.  This requirement is WTO 
incompatible and we urge Yemen to abolish it from its legislation. 
Answer : 
Please note that Yemen has never applied Article 24 of  the Investment Law.  Furthermore, if Yemen 
resorts to such article in the futu re, it will be within the bound rate.  
(c) Tariff quotas, tariff exemptions Question 55 We welcome the statement in Question 21 and paragraph 47 of the Factual Summary 
(JOB(05)/172) that Yemen does not apply tariff ra te quotas.  Yemen also indicated that it may 
apply tariff-rate quotas to sensitive products.   
To what specific products would Yemen apply a tariff-rate quota? Answer
: 
Yemen has not decided to use tariff rate quota yet.  Yemen may resort to such a system if the need 
arises.  If so, it will conform to the relevant WTO provisions. 
Question 56 
Paragraph 47 of the Factual Summary (JOB(05) /172):  We appreciate Yemen's clarification 
that it currently does not apply tariff quotas.  We  would urge Yemen to reconsider any notion of 
introducing tariff quotas on accession. WT/ACC/YEM/10 
Page 22  
 
 Answer
: 
Please see answer to Question 54. 
Question 57 
We would appreciate more detail on the agricultural and fisheries projects which are exempt 
from tariff duties.  Could Yemen confirm that su ch tariff exemptions are in conformity with 
WTO agreements?  We seek details of the project s concerned, how exemptions are applied, and 
whether tariff exemptions are made contingent in  any way on domestic production or exports. 
Answer : 
Yemen provides tariff exemptions for machines, equipm ent, tools, materials, and production inputs to 
associations and cooperatives supervised by the Ministry of Agriculture and Irrigation and the 
Ministry of Fisheries as well as investment project s within these areas.  These exemptions are given 
without any precondition based on domestic production or exportation and are in conformity with 
WTO agreements.   
 (d) Other duties and charges, specify ing any charges for services rendered 
Question 58 
With reference to Question 24 of WT/ACC/YEM/6, we look forward to receiving a preliminary 
list of ODCs, and accompanying explanation as  to their purpose.  Please explain why these 
ODCs are not applied to domestic products.   
Answer : 
A list of ODCs and their purposes is circulated in document WT/ACC/YEM/11.  For further 
illustration, the document also contains a list of fees that apply to both imported and locally produced 
goods.   
Question 59 
In its response to Question 23 of the Factual Summary, Yemen indicated that ODCs would be 
dealt with during the accession process.   
Does Yemen intend to bind all ODCs at zero upon accession? 
Answer : 
Yemen will abide by Article II (1) (b) of GATT; th is will be agreed upon during the negotiations.  
Question 60 
We look forward to reviewing Yemen's sche dule for fees and charges for services rendered. 
Answer : 
The list of fees and charges for services rendered is circulated in document WT/ACC/YEM/11.  WT/ACC/YEM/10 
 Page 23 
 
 
 Question 61 
Paragraph 46 of the Factual Summary:  Could Ye men indicate when it will submit information 
on its other duties and charges to the Working Party? 
Answer : 
Please see answer to Question 57. Question 62 It is noted that Article 25 of the 2002 Investment law indicates that the fees and duty charged on 
imported goods that are comparable to locally-p roduced goods will be set higher than for other 
goods.  This requirement is WTO incompatible and we urge Yemen to abolish it from its 
legislation.   
Answer
: 
The understanding of Article 25 of the Investment  Law as reflected in the question appears to 
misinterpret the provision.  The purpose and effect of Article 25 is to create a level playing field between competing like local and imported product s by ensuring that internal financial burdens 
imposed on local production are not higher than those imposed on imported like products.  
Question 63 Paragraph 49 of the Factual Summary (JOB(05) /172):  Could Yemen indicate when it will 
submit information on its fees and charges for services rendered to the Working Party? 
Answer
: 
Please see answer to Question 59. 
Question 64 
Paragraph 46 of the Factual Summary (JOB(05) /172): We look forward to the forthcoming 
submission by Yemen of its other duties and charges (ODCs) on imports.  We hope that, 
following due consideration of the ODCs that it  applies, Yemen will agree to bind its ODCs at 
zero upon accession. 
Answer : 
Please see answers to Questions 57 and 58. 
Question 65 
Paragraph 49 of the Factual Summary (JOB (05)/172): We look forward to Yemen's 
forthcoming submission of information on f ees and charges for services rendered.  We note 
reference to a number of fees in paragraph 55, including a 0.2 per cent fee on technical clearance of pesticide/fireworks.  Such fees appear  to be applied on the value of goods imported 
and not related to the cost of the service provide d (as required by Article VIII of GATT 1994).  WT/ACC/YEM/10 
Page 24  
 
 Answer
: 
Please see  answers to Questions 47 and 59. 
(e) Quantitative import restrictions 
Question 66 Referring to Question 25 of WT/ACC/YEM/6, we  look forward to receiving a list of all 
prohibited imports.  When does Yemen an ticipate having such a list available? 
Answer
: 
The list of prohibited goods circulated in documen t WT/ACC/YEM/17.  All of these restrictions are 
justified under Article XX or XXI of GATT 1994. 
Question 67 
In paragraph 54, the Factual Summary (JOB(05)/172) states that "Law No. 16/1996 "On 
Foreign Trade" had abolished import licensing in Yemen.  At present, some goods were subject 
to prior technical clearance (Table 8)."  In pa ragraph 55, the Factual Summary adds that "The 
technical clearance requirements were not discre tionary, in his opinion, and were granted 
automatically once the required application pr ocedures and requirements had been met."  
- Please clarify how "technical clearance re quirements" differs from automatic import 
licensing requirements. 
- Please clarify the process for "technical cl earance".  Is there a set amount of time 
allotted to the review of applications for tec hnical clearance?  Does each shipment need 
to be cleared by the relevant authority or is technical clearance granted for a set time period? 
- Do the submissions for technical clearance requi re a specific form(s) or format(s)?  If so 
can Yemen provide an example of the required form(s)? 
- Can applications for technical clearan ce be denied for minor documentation or 
procedural errors? 
- Is there any opportunity for other countries to make comments in writing when new 
procedures regarding the technical certific ation or import licensing are introduced? 
Answer
: 
- Yemen reiterates its statement that it has no import licensing regime.  However, based on 
laws, regulations and practices in a number  of government agencies like those under the 
Ministries of Agriculture, Health, Industry and Tr ade, Culture, and Interior, we have noticed 
that terminologies like clearances, permits, approvals, and licenses were mentioned. 
Analysing the measures taken, and procedures adopted we came to the conclusion that they 
may be described as licensing procedures, alt hough they focus on ensuring compliance with 
technical issues.  We have also found that a technical clearance permit or approval, etc. is 
given in a manner which is similar to automatic licensing; 
- Review of the applications for technical clearan ces; such clearance is given within a few days, 
not exceeding ten working days and is granted for a product even if it arrives in separate 
consignments; 
- Technical clearance is given for a specific duration of validity which depends on the product 
and the granting agency; 
- Technical clearance requires a special form or format;  WT/ACC/YEM/10 
 Page 25 
 
 
 - Applications cannot be refused in case of mi nor documentation or pr ocedural errors; and 
- The existing laws and regulations do not provide for the submission of comments on new 
procedures.  However, Yemen will cons ider such provisions in the future. 
The completed questionnaires on import licensing proce dures will provide further clarification with a 
view to the above-mentioned points.  
Question 68 Paragraph 56 provides a summary of the procedures for importing books, newspapers, 
audiovisual and other artistic works into Yemen including the statement that the Ministry of 
Culture and Tourism would only accept applicat ions from Yemeni nationals for technical 
clearance to import such materials.   
- Please explain how this restriction is in conf ormity with GATT Articles III and XI; and 
- Please describe the types of products for which the Ministry would deny technical 
clearance.  
Answer
: 
Please see answer to Question 39. 
We would like to indicate that the type of products  which the Ministry of Culture denies technical 
clearance cannot be specified in digits and descriptio n at any point in time, as they are products which 
fall under clear and specific violation of Islamic va lues of the society, public order, security and 
public morals.  
Question 69  
Similarly, paragraph 57 describes the rules for importing pharmaceuticals and medical 
equipment: 
- Please explain the rationale behind the restrictions listed; and - Please describe the registration process with the Supreme Authority for Drugs and 
Medical Equipment. 
Answer
: 
- The requirements referred to in paragraph 57 are not restrictions, but merely the necessary 
requirements for those dealing with pharmaceuticals and medical equipments. The basic rationale is the protection for the human health and life. 
 The requirement (iii) in paragraph 57 of the Factual Summary should read as follows: 
  "be a full-time pharmacist or the importer to hire a full-time pharmacist as a technical 
supervisor." WT/ACC/YEM/10 
Page 26  
 
 - The registration process with the Supr eme Authority for Drugs are as follows: 
 - As regards pharmaceutical products: 
1. free sale certificate of the product in the country of origin pursuant to the WHO 
certificate scheme, legalized by  the competent authorities; 
2. Bio-Equivalence studies for the dosage forms "capsules", "tablets", 
"suspensions" according to the WHO scheme of as required  by the Technical 
Committee for Registration; 
3. Free sale certificate of the product and composition of the product including the 
active and inactive ingredients: the colouring and flavouring materials if any, to identify quantity thereof; pharmaceutical  form; package; composition; insert 
leaflet used in the country of origin including all aspects required to be 
registered in Yemen, legalized by the Mi nistry of Health, the Foreign Ministry, 
the Yemeni Embassy, or any Party, or Arab embassy acting on its behalf in case the Yemeni Embassy is not available in the country of origin; 
4. Certificate of comprehensive product analysis proving that the analysis result is 
identical to the standard and to state  the pharmacopeia by the lab seal and the 
manufacturing company in the country of origin (form to be obtained from Registration Department); 
5. The analysis method in case the pharmac opoeia is not mentioned next to the 
materials in the composition or pharmac opoeia validation study in case of non 
pharmacopoeia products;. 
6. A standard referential sample for ever y active material in the item in case it is 
different from the approved pharmacopoeia; 
7. Product stability study; 8. Clinical study in case the product has been recently invented; 9. Twenty samples of the product intended for registration (current packs); and 
10. Three inserted leaflets, three external packs and three stickers. 
 - As regards medical appliances: 
1. Free sale certificate and certificate of sterilization for the items requiring 
sterilization; 
2. Price certificate including the wholesaler and retail prices in the country of 
origin and the proposed CIF price to a Yemeni port proposed by the company; 
3. Six samples of each item bearing all the necessary information. 
Question 70  
Referring to paragraph 58 of the Factual Summary, we look forward to receiving a list of the 
fees currently assessed for technical clearances. 
Answer
: 
The list of the technical clearance fees is incl uded in the "list of fees and charges for services 
rendered" circulated in document WT/ACC/YEM/11.  
Question 71  
We welcome Yemen's commitment in paragraph 59 of the Factual Summary that Yemen would 
comply with the WTO Agreement on Import Licen sing procedures, including the notification 
requirement, upon accession.  We also welcom e Yemen's commitment to apply any future  WT/ACC/YEM/10 
 Page 27 
 
 
 import licensing regime in accordance with th e WTO Agreements.  We reserve our rights to 
propose specific commitment language once th e factual basis of this section has been 
established.  We look forward to Yemen's comp leting the import licensing questionnaire and 
would appreciate an assessment of when it will be completed. 
Answer : 
The import licensing procedures questionnaire will be submitted in the very near future, including a 
list of relevant documents a nd requirements for importation. 
Question 72 
Paragraph 53 of the Factual Summary (JOB(05)/ 172):  Could Yemen indicate when it will be 
able to provide the list of products  subject to import prohibition? 
Answer : 
Please see answer to Question 65. 
Question 73 
Paragraph 56-57 of the Factual Summary (JOB( 05)/172):  Could Yemen explain exhaustively 
the criteria required for issuance of technical clearance and their legal basis as regards the 
following products: seeds and fertilizers, pesticid es, plants, explosives and fireworks, books, 
newspapers, audiovisual and artistic works an d drugs and medical equipment.  With the 
criteria we mean exhaustive list of all document s that need to be submitted to the issuing 
authority and other criteria relating to the qualifications and other requirements regarding the applicant/importer.   
Answer
: 
The questionnaires referred to in answer to Questio n 70 will provide clarifi cation and answers to all 
such queries. 
Question 74 
Paragraph 57 of the Factual Summary (JOB(05)/ 172):  Could Yemen explain what the rationale 
of requiring that importer of drugs is or medica l equipment needs to be an agent of a drug or 
medical equipment company and full time pharmacist? 
Answer : 
Please see answer to Question 68. 
Question 75 
Can foreign nationals and companies be gran ted technical clearance for importation of 
medicines and medical equipment? WT/ACC/YEM/10 
Page 28  
 
 Answer
: 
Foreign nationals and companies cannot be granted technical clearance for importation of medicines 
and medical equipment, as importation, in genera l, is confined only to Yemeni nationals and 
companies as referred to answers in Questions 39 and 40. 
Question 76 
Paragraph 58-59 of the Factual Summary (JOB( 05)/172):  We welcome Yemen's commitment to 
bring its fees charged for technical clearan ce into compliance with the WTO Agreement on 
Import Licensing Procedures upon accession, and to comply with this agreement upon 
accession.   
Answer : 
Yemen will comply with the WTO Agreement on Import Licensing Procedures upon accession. 
Question 77 
Yemen has indicated that it will provide further in formation on quantitative import restrictions.  
We look forward to seeing this information in  due course and seek information on measures 
that can be applied, their method of application, and the WTO justification. 
Answer : 
Yemen has no quantitative import restrictions other than those mentioned in the list of prohibited 
goods in line with Articles XX and XXI of GATT 1994.   However, Yemen prohibits the importation 
of coffee and mango. Yemen also maintains seas onal tariffs/restrictions on certain agricultural 
products.  These restrictions are under review to conform to WTO rules upon accession. 
Question 78 
In paragraph 54 of the Factual Summary (JOB(05) /172), Yemen notes that import licensing has 
been abolished and replaced by "technical cleara nce."  However, it appears that "technical 
clearance" is still a form of import licence.  We  seek information on wh at constitutes technical 
clearance, including any approval criteria applied,  the process of obtaining clearance (including 
processing time and fees), and reasons for refusal. 
Answer : 
Please see answers to Questions 66 through 75. 
(h) Customs valuation 
Question 79  
In response to Question 48 of WT/ACC/YEM/4, Yemen states that importer's have a right to 
appeal customs valuation decisions to a commi ttee representing the customs authority and the 
importer.  If the committee cannot reach agreemen t on the dispute, the matter may be referred 
to another committee with representation from the office of the Minister of Finance, a 
representative from the customs authority, an d a representative of the Chamber of Commerce 
and Industry.  Yemen states that decisions of  the second committee are final and binding.  
Under Paragraph 2 of Article 11 of the WTO Valu ation Agreement, an importer has the right to  WT/ACC/YEM/10 
 Page 29 
 
 
 appeal administration determinations to an inde pendent judicial authority.  A committee with 
representatives from the Finance Mi nistry and customs authority is not an independent judicial 
body.   
We urge Yemen to amend its Customs Law to conf orm its law regarding the right of appeal to 
the requirements of the WTO Valuation Agreement. 
Answer : 
The Draft Customs Law is currently being considered  and reviewed to conform to the provisions of 
the WTO Agreements on Customs Valuation and also on Rules of Origin.  
Question 80  
We are pleased to see that in Articles 231 th rough 238 of the Explanatory Memorandum of the 
Draft Customs Law, Yemen is proposing to ame nd its customs law to provide for the right to 
appeal adverse customs decisions to an administrative committee and independent customs court.   
We are concerned, however, that the importer may have insufficient time to prepare an appeal 
because Article 231 provides only eight days from the date of the "proces-verbal" to appoint a 
representative to the administrative committee.   
Answer
: 
Please refer to answer in Question 78. 
Question 81  
According to Article 231 through 238 of the Explanatory Memorandum of the Draft Customs 
Law, the committee that reviews the initial rev iew of customs determinations would include a 
representative of the Chamber of Commerce.  Pursuant to Article 10 of the WTO Valuation 
Agreement, "All information which is by natu re confidential or which is provided on a 
confidential basis for the purposes of customs valua tion shall be treated as strictly confidential 
by the authorities concerned who shall not disclose it without the specific permission of the person or government providing such informat ion..." The inclusion of a non-government 
representative on the committee violates the Ar ticle 10 requirement to protect confidential 
information.   
We urge Yemen to amend this provision to limit  representation on the committee to government 
representatives. 
Answer
: 
Please see answer in Question 78. Question 82 Paragraph 62 Factual Summary:  We note the ex planation of Yemen that it will complete the 
revision of its Customs Law by 2007.  We would be  happy to have a copy of the draft law as 
soon as possible to be able to comment it. WT/ACC/YEM/10 
Page 30  
 
 Answer
: 
Yemen confirms that its Draft Customs Law will be in conformity with the provisions of WTO 
Agreements.  As indicated, the draft law is still unde r discussion.  A copy of it will be provided to the 
Working Party as soon as it is prepared in near-final form.  
Question 83 
We are also looking forward to seeing the wo rking programme in this area.  Can Yemen 
indicate when this will be available to the Working Party? 
Answer : 
The Customs Valuation Work Programme will be sent later. 
Question 84 
We note that Yemen is drafting a new Customs La w, with a view to being able to comply with 
the WTO Agreement on the Implementation of Ar ticle VII of the GATT 1994, which it hopes to 
have approved by 2007.  We would be interested to see Yemen's proposed work plan when it becomes available (paragraph 62 of the Factual Summary). 
Answer
: 
Please see answer to Question 82. 
(j) Pre-shipment inspection 
Question 85  
Paragraph 73 indicated that there exists no government-mandated pre-shipment inspection 
regime in Yemen.  
Do Yemeni importers require pre-shipment inspections? 
Answer : 
Some Yemeni importers resort to such measure. 
Question 86  
We appreciate the commitment in paragraph 73 of the Factual Summary; however, we reserve 
our right to propose specific commitment langu age when the factual basis of the section has 
been fully developed. 
Answer : 
Yemen welcomes any discussion on proposed langua ge relating to its adherence to the WTO 
Pre-shipment Inspection Agreement.   WT/ACC/YEM/10 
 Page 31 
 
 
 (k) Application of internal taxes on imports 
Question 87 Referring to paragraph 52 of the Factual Summa ry (JOB(05)/172), please provide information 
on different tax rates applied to goods imported  under the terms of bilateral or regional trade 
agreements. 
Answer
: 
Elaborating on the statement mentioned in paragr aph 52 of the Factual Summary and the answer to 
Question 33 of WT/ACC/YEM/6, it should be emph asized that customs duties applied to goods 
imported under bilateral or regiona l agreements are subject to the provisions of these agreements.  
As for internal taxes, products imported under such an agreement are not treated differently from any 
other products outside such agreements.  In other words, they are applied on products irrespective of 
their source. 
Question 88 
Paragraph 51 Factual Summary (JOB(05)/172): We would be interested to receive the copy of 
the Law No. 19/2001 on the General Sales Tax which would be introduced during 2004 to 
replace the current production, consumption and services tax. 
Answer : 
The copy of the Law No. 19 of 2001 on the General Sales Tax and its Amendments by Law 
No. 42/2005 will be sent later. 
Question 89 
Yemen has indicated that taxes applied on im ports from its bilateral or regional trade 
agreement partners may be treated differently than  those from other countries of origin, which 
suggests some potential for discrimination.  Can Yemen please provide more information on the 
taxes applied to imports from all the countries with which it has bilateral or regional trade 
agreement partners? 
Answer : 
Please see answer to Question 86. 
(l) Rules of origin 
Question 90  
In response to Question 39 of WT/ACC/YEM/6, re garding the right of importers to appeal 
adverse customs decisions to the customs author ity and to an independent judiciary, Yemen 
states that the right of appeal is provided in the Customs Law.   
Please clarify what provision of the Customs La w provides the right to appeal adverse decisions 
regarding the origin of an imported good. WT/ACC/YEM/10 
Page 32  
 
 Answer
: 
Article 76 of the existing Customs Law requires that  in case of a disagreement about the origin of a 
product, the decision of a panel composed of two experts who represent the interest of the Customs Authority and the importer is final, if they both ag reed.  In case of further disagreement, it shall be 
referred to a committee composed of a permanent re presentative appointed by the Minister of Finance 
and two members; one representing Customs Aut hority and the other representing the respective 
Chamber of Commerce and Industry.  The committe e's decision is deemed final, conclusive, and 
unchallengeable.  
Question 91  
In the Explanatory Memorandum of the Draf t Customs Law, Article 28 states: "Goods 
imported from a country other than the country  of origin, are subject, after being put for 
consumption in that country, to customs tariff app lied to goods of  the country of origin or the 
source country whichever is the highest."  
Please explain the purpose of this provision.   
Answer
: 
Please see answer to Question 78. 
Question 92  
What provisions exist in Yemen's customs provisions to provide interested parties a 
determination of a good's origin prior to im portation, as required by the Agreement in 
Article 2(h) and Annex II, paragraph 3(d)? 
Answer : 
No such provisions currently exist. Yemen is review ing the provisions on rules of origin in the new 
Draft Law. 
Question 93 
Paragraph 69 of the Factual Summary (JOB(05)/172):  We would be happy to have the 
confirmation of Yemen that it will comply wi th the WTO Agreement on Rules of Origin upon 
accession. 
Answer : 
Please see answer to Question 78.  Yemen will comp ly with WTO rules of origin upon accession. 
(m,n,o) Anti-dumping, countervailin g duty, and safeguard regimes 
Question 94  
In response to Question 40 of WT/ACC/YEM/6, Yemen notes it is in the process of drafting 
safeguard, antidumping and countervailing duty legislation.   
- Please provide an estimated timeline of when the legislation will be finalized and ready 
to be reviewed by Members; and   WT/ACC/YEM/10 
 Page 33 
 
 
 - Please confirm that Yemen will ensure its legislation will be in full conformity with 
relevant WTO provisions. 
Answer : 
Yemen has already mentioned an estimated timeframe for introducing such law.   This is included in 
the legislative action plan (WT/ACC/YEM/9/Rev.1) Item 3 which is the year 2007. 
Yemen confirms that laws on anti-dumping, c ountervailing duties and safeguards will be in 
conformity with the WTO Agreements. 
Question 95 
Paragraph 75 of the Factual Summary (JOB(05) /172):  We welcome Yemen's commitment to 
apply any anti-dumping, countervailing duties, and safeguards in full conformity with the 
relevant WTO provisions.  We would be happy to receive the draft law as soon as available to 
be able to comment it.  Could Yemen indicate when this would be available? 
Answer : 
Please see answer to Question 93. 
2. Export Regulation  
(f) Export financing, subsidy and promotion policies 
Question 96  
Concerning Yemen's reference to the special a nd differential treatment provisions of the SCM 
Agreement, we nonetheless believe that Yemen shou ld consider revision of its laws to eliminate 
any prohibited subsidies as defined in Article 3 of the SCM Agreement as soon as possible, as 
Yemen's ability to apply such measures within  WTO rules will expire when it is no longer 
recognized as an LDC.  If Yemen cannot eliminate these measures from the date of accession, it 
should propose a timeline for their gradual elimination.   
Does Yemen currently provide any subsidies based on local content use? 
Answer : 
Yemen confirms its commitment to implement all WTO provisions.  Please also refer to answer in 
Question 23.  
Question 97  
We also seek confirmation by Yemen that it wi ll notify all of its subsidies, prohibited or 
otherwise, in accordance with Article 25 of the SCM Agreement, which states, "Members shall 
notify any subsidy as defined in paragraph 1 of Ar ticle 1, which is specific within the meaning of 
Article 2, granted or maintained within their territories".   
Answer : 
Yemen confirms that it will abide by Article 25 of the SCM Agreement upon accession. WT/ACC/YEM/10 
Page 34  
 
 (h) Import duty drawback schemes  
Question 98 Paragraph 79 of the Factual Summary (JOB(05) /172):  Could Yemen give detailed explanation 
of the operation of its duty drawback scheme?   Could Yemen explain in particular how its 
authorities verify which inputs are consumed in the exported products and how they control in 
practice that the drawback does not exceed the actual duties paid? 
Answer
: 
We would like to reiterate the facts mentioned in our previous statement on the duty drawback 
scheme in Yemen.  We confirm that duties are ref unded totally or partially on the imported inputs 
actually incorporated in the manufacture of e xported products.  The exporter has to submit an 
application accompanied by all necessary documentation,  in particular those related to duties paid on 
the imported products incorporated in the final product.  
The amount refunded is based on an evaluation of the percentage of the value of the imported 
products incorporated in the final product for export and the duty paid on such inputs.  This evaluation 
is conducted by a committee composed of representatives from the Customs Authority and the 
Ministry of Industry and Trade, the Ministry of  Agriculture, or the Investment Authority.  The 
evaluation is strictly neutral and is in no way discretionary.  
We would like to reaffirm that the duty drawback  does not exceed the actual amount of duties paid by 
the exporter on his imported inputs. 
Question 99  
In response to Question 48 of WT/ACC/YEM/6, Yemen stated that the import duty refunds do 
not exceed the actual amount paid.  Could Yemen please explain: 
- How your authorities confirm which inputs are consumed in the production of the 
exported product and in what amounts; and  
- Can you please describe what type of system Yemen has in place, if any, that your 
authorities will use to ensure that the draw back does not exceed the actual duties pain 
upon importation? 
Answer : 
Please see answer to Question 97. 
3. Internal policies affecting foreign trade in goods 
(a) Industrial policy, including subsidy policies  
Question 100  
In response to Question 51 of WT/ACC/YEM/6 regarding industrial zones, Yemen stated that it 
intends to avail itself of support measures that  include export perfor mance and local content 
requirements, within the context of Yemen's development.    WT/ACC/YEM/10 
 Page 35 
 
 
 As we already noted, we nonetheless seek a commi tment for the elimination of such measures, in 
light of the fact that at some point, Yemen will no t be able to maintain such subsidies, i.e. as 
defined in Article 3 of the SCM Agreement, after it is no longer considered an LDC.   
Answer : 
Please see answer to Question 95. Question 101  
Paragraph 82 Factual Summary (JOB(05)/172): As regards Industrial Zones, we welcome 
Yemen's statement that it intends to comply with  WTO rules when establishing industrial zones.  
However, we note Yemen's statement that it in tends to resort to local content requirements in 
its industrial zones.  We would like to stress that  local content subsidies are prohibited subsidies 
under Article 3 ASCM also for LDCs.  LDCs a re exempted from the prohibition of export 
subsidies under Article 27 ASCM (Annex VII), but not from the prohibition of local content subsidies.  We therefore urge Yemen not to res ort to local content subsidies in its industrial 
zones. 
Answer
: 
Yemen will be committed to apply all WTO pr ovisions including Article 27 of the ASCM. 
(b) Technical regulations and standards 
Question 102  
With respect to Question 53 of WT/ACC/YEM/6, we look forward to receiving your action plan 
on TBT.  We will follow up with further quest ions upon receiving your TBT-related documents. 
Answer : 
The Action Plan for the Implementation of the TBT Agreement is circulated in document 
WT/ACC/YEM/15. 
Question 103  
Referring to Yemen's response to Question 55,  if Yemeni Standardization and Metrology 
Organization (YSMO) certificates are currently the only recognized certificates, how are 
imports requiring certificates currently handled?  When will the operational system be 
adopted?   
Answer : 
- Certificates issued from the YSMO shall be recognised for domestic products only.  For 
imports, certificates accompanying the shipment sh all be recognised if they are issued from 
accredited labs in the country of origin; and 
- The adoption of an operational system is related to the issue of lab-conformity as referred to 
in the action plan of the implementation of TBT Agreement (WT/ACC/YEM/15). WT/ACC/YEM/10 
Page 36  
 
 Question 104 
We are pleased to see in the response to Question 56 of WT/ACC/YEM/6 that Yemen is in the 
process of establishing an enquiry point.  Pl ease provide an update as to the status of 
establishing this enquiry point and the timeline for completion. 
Answer
: 
Please refer to the Action Plan for the Implemen tation of the TBT Agreement (WT/ACC/YEM/15), 
and the related technical assistance needs (WT/ACC/YEM/16). 
Question 105  
In its response to Question 58 of WT/ACC/YEM/6, Yemen states that "YSMO (entity identified 
as the focal point for TBT) generally applies international standards."   
- Does Yemen currently (or have plans to) apply TBT measures that are not based of 
international standards?   
- How does Yemen plan to ensure that such me asures are in full compliance with the TBT 
Agreement? 
Answer : 
In setting its specifications, Yemen relies on internati onal standards, and is guided by Gulf standards 
(which, we believe, are based on international sta ndards). Yemen has never issued any specifications 
contrary to that.  If there is a need to prepar e Yemeni specifications not based on international 
standards, they shall be prepared  according to the TBT Agreement.  
Question 106 
Paragraph 85 of the Factual Summary (JOB(0 5)/172): We note Yemen statement that full 
compliance with the TBT Agreement requires techni cal assistance and a transition period.  We 
are also looking forward to seeing the action pl an in this area and would be happy to know 
when Yemen could submit the action plan on TBT to the Working Party. 
Answer : 
Please see answer to Question 101. Question 107 Paragraphs 85-86 of the Factual Summary(JOB(05) /172): Yemen has indicated it is requesting 
financial and technical assistance in order to be able to implement fully the obligations of the 
TBT agreement.  We look forward to advice in due course about its action plan for 
implementing this Agreement and of the pr ocess of establishing an enquiry point. 
Answer
: 
Please see answer to Question 101.  WT/ACC/YEM/10 
 Page 37 
 
 
 (c) Sanitary and phytosanitary measures  
Question 108  
We thank Yemen for providing answers to Questio ns 59-69 of WT/ACC/YEM/6 on sanitary and 
phytosanitary measures.   However, we need  a more detailed response to these questions in 
order to better assess how Ye men plans to implement and adopt the SPS Agreement.   
Answer : 
For more details about the impl ementation of SPS measures, the fo llowing documents have been 
circulated: 
- The revised SPS Check-list (WT/ACC/YEM/12); 
- The Action Plan for the implementation of SPS measures (WT/ACC/YEM/13); and 
- Technical assistance needs related to the implementation of SPS measures 
(WT/ACC/YEM/14). 
Question 109  
We understand that Yemen will provide a revised SPS check-list with more details on the status 
of implementation and progress including timelines.   
Answer : 
Please see answer to Question 107. 
Question 110  
We also look forward to Yemen's submission of an SPS Action Plans and as well as a request for 
technical assistance. 
Once Yemen has submitted and we have had a ch ance to review these documents, we may want 
to ask further questions. 
Answer : 
Please see answer to Question 107. 
Question 111  
We would like to help Yemen devise an SPS implementation plan that meets its needs and will 
take into account any special needs that Yemen may have in this regard, as per Article 10 (1) of 
the SPS Agreement. 
Answer : 
We would like to thank the WTO Members for th eir preparedness to provide technical assistance 
according to Article 10.1 of the SPS Agreement.  
Question 112 
Paragraph 96 of the Factual Summary (JOB(0 5)/172): We note Yemen statement that full 
compliance with the SPS Agreement requires technical assistance and a transition period.  We WT/ACC/YEM/10 
Page 38  
 
 are also looking forward to seeing the action pl an in this area and would be happy to know 
when Yemen could submit the action plan on SPS to the Working Party. 
Answer
: 
Please see answer to Question 107. 
Question 113 
We look forward to Yemen's submission of an  action plan for implementation of the SPS 
Agreement.  It would be helpful if Yemen could outline in general terms the deficiencies of its SPS regime, as this will assist with explaining the changes it believes will require action under the action plan.  We note Yemen plans to noti fy the establishment of its enquiry point and 
notification authority on accession. 
Answer
: 
Please see answer to Question 107. 
Question 114 
We would be interested to know whether Yemen w ill be using the same agency as both its SPS 
Enquiry Point and Notification Authority. 
Answer : 
Yemen is currently considering this issue.  It will notify Members on any decision as soon as possible. 
Question 115 
We appreciate Yemen's responses to questions ab out SPS measures, in particular its submission 
of the indicative checklist on SPS measures and its indication that it would like to comply with 
the SPS Agreement, but is seeking technical suppo rt and a transition period.  We have the 
following queries and suggestions in relation to the indicative checklist (WT/ACC/YEM/5) 
which we would like to register with Yemen: 
- Yemen will need to have some kind of consultative mechanism in place to allow 
interested Members or the public a reasonabl e period of time to comment without 
discrimination.  We suggest removing the confusing qualification "if requested"; 
- Yemen mentions technical assistance and its efforts to "endeavour" to apply the SPS 
Agreement to the extent neces sary to protect health (commitment 8).  Yemen will need 
to describe what technical assistance will ac hieve to strengthen its regimes and provide 
some measure of certainty that it will eventually apply the SPS, rather than simply "endeavour" to do so; 
- We also are concerned with the entry of the qualifying term "endeavour" against 
commitments 9 and 10; and 
- The objectives of financial and technical assistance should be provided in due course 
relative to Yemen's comments against commitment 11. 
Answer
: 
We are grateful for the suggestions.   WT/ACC/YEM/10 
 Page 39 
 
 
 Please see answer to Question 107. 
(d) Trade-related investment measures 
Question 116  
We are concerned by Yemen's indication that  it intends to avail itself of local content 
requirements to promote investme nt in industrial zones.   
Answer : 
Please see answer to Question 23.  
Question 117  
Yemen should indicate how it intends to brin g these measures into line with the WTO TRIMs 
Agreement.  Consistent with the LDC Declaratio n on Accessions, we are prepared to address 
the elimination of these measures in the context of a transition.  Please provide an action plan 
implementing the WTO Agreement on TRIMs. 
Answer : 
Yemen is grateful for the Member's expressed read iness to accept transitional periods, and hopes that 
other Members will follow this approach, in line w ith the letter and spirit of the General Council 
Decision on LDC Accessions of December 2002. 
Please see answer to Question 23. 
Question 118 
Trade related investment measures, Paragr aph 100 of the Factual Summary JOB(05)/172: 
When establishing industrial zones, the Report  states that the Yemeni government intended to 
"avail itself to local content and export perf ormance requirements should such measures be 
considered conducive to Yemen's industrial develo pment."  Could Yemen please clarify what is 
meant by this phrase and whether if in Yeme n's opinion these local content requirements are 
consistent with the provisions of the WTO Agreement on Trade-Related Investment Measures? 
Answer : 
Please see answer to Question 23. (e) State-trading practices  
Question 119  
What entities have the right to import and export crude oil, natural gas, and petroleum 
products? 
Answer
: 
Import and export of crude oil, natural gas and petroleum products are the responsibility of the 
General Corporation for Oil and Gas and its affiliates.  WT/ACC/YEM/10 
Page 40  
 
 Question 120  
What entities are licensed to import pha rmaceuticals and medical equipment? 
Answer
: 
The entities licensed to import pharmaceuticals and medical equipment are as follows: - The government health agencies; and 
- The private sector importers registered at the Supreme Board of Drugs and Medical 
Appliances. 
Question 121  
Do any of the State enterprises listed in pa ragraph 27 or Table 3 of the Factual Summary 
possess special or exclusive trading privileges? 
Answer
: 
Please see answer to Question 8. 
Question 122 
Paragraph 102:  Could Yemen give detailed expl anation of the scope of activities and special 
competencies and rights of the 100 per cent State-owned companies Yemen General Company 
of Oil and Gas, The Yemen Oil Company, the Aden Refinery Company and the Yemen 
Refinery Company? 
Answer : 
Please see answer to Question 5.  
(f) Free zones 
Question 123  
We reserve the right for further comment on this section.  We reiterate our request that Yemen 
commit to eliminate subsidies as defined in Article 3 of the SCM Agreement that may remain. 
Answer : 
Yemen will be committed to apply all the provisi ons of ASCM upon accession.  It should be noted, 
however, that these include, inter alia , Article 27.  
Question 124 Paragraph 104 of the Factual Summary (JOB( 05)/172): We note Yemen's explanation that 
financial transactions within the free zones are no t subject to foreign exchange control measures 
and that investors have the right to transfer th eir capital and profit out of the free zones. 
Could Yemen explain what kind of foreign exch ange control measures and restrictions as 
regards transferring capital and profit apply to  companies located outside free zones?  Yemen 
explains in paragraph 14 concerning foreign ex change regime that no restrictions apply.    WT/ACC/YEM/10 
 Page 41 
 
 
 Answer : 
There are currently no foreign exchange control meas ures or restrictions on the transfer of capital or 
profits that apply to companies located outside Free Z ones.  This is in line with Article VIII of the 
International Monetary Fund Agreement, which Yemen ratified in 1996 as part of the economic 
reform program.  The Free Zone Law No. 4/1993 wa s drafted when there were restrictions on the 
transfer of capital within the country.  However,  now those restrictions have been eliminated.  
(l) Government procurement practices 
Question 125 Paragraph 108 of the Factual Summary (JOB(05) /172): We would encourage Yemen to consider 
joining the GPA after its accession to WTO. 
Answer
: 
Yemen will consider how to deal with this agreement after accession to WTO. 
(m) Regulation of trade in transit 
Question 126  
We appreciate the statement in paragraph 109 of the Factual Summary.  Please describe the 
provisions in Customs Law No. 14/1990 that govern transit trade. 
Answer : 
The Customs Law allows for the transit of goods of  foreign origin according to the transit system 
whether these goods are passing through Yemeni terr itories into other countries' territories (these 
products are not subject to guarantees), or whether they are sent directly from one entry point to another in the country (transit).  Goods are not subj ect to restrictions and prohibitions unless specified 
otherwise in the relative laws and regulations.  The Customs Authorities identify entry points, 
transport means and roads allowed for the passage of  the goods taking into consideration agreements 
concluded with other countries.  The Customs Au thorities issue permits that could be cancelled in 
case of violations or misuse of transport means.  This applies as well in case people involved have 
been proven guilty of committing violations of the law or to be engaged in smuggling activities.  
Goods in transit are subject to a brief declaration and an overall inspection in part or in whole if 
needed.  The Customs Authorities shall impose gua rantees, if necessary, in order to ensure the 
payment of customs duties in case of diversion.  The Customs Authorities shall use precautionary 
measures like sealing or other means in such a way as to  ensure the arrival of goods at the other entry 
points and also to ensure that they are not smuggl ed into the country or not accompanied by other 
products.  The law also allows for the applicati on of the transit system based on international 
documents, internationally unified forms and securi ty and safety procedures for goods and transport 
means. WT/ACC/YEM/10 
Page 42  
 
 4. Policies affecting foreign trade in agricultural products 
(b) Exports Question 127  
This section will become clearer as discussions on  Yemen's domestic support tables and export 
subsidies progress. 
Answer
: 
Information on Domestic Support and Export Subsidies in Agricu lture have been submitted in 
document WT/ACC/SPEC/YEM/1. 
Question 128  
With reference to paragraph 112 of the Factua l Summary and Question 79 of WT/ACC/YEM/6, 
we ask Yemen to bind export subsidies at zero upon accession.  This is a commitment taken on 
by all acceding countries, including LDCs.  
Answer : 
Yemen will be committed to apply all the provisi ons of the WTO Agreement on Agriculture upon 
accession. 
Question 129  
We note that for countries like Yemen, the subsid ized export of agricultural products is, in 
reality, the subsidized export of water.    
Answer : 
We took note of the valuable remark. 
Question 130 
We note that Yemen has stated that it does no t currently use export subsidies.  We encourage 
Yemen to bind its agricultural export subsidies at zero on accession. 
Answer : 
Please see answer to Question 127.  WT/ACC/YEM/10 
 Page 43 
 
 
 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(a) Copyright and related rights, including ri ghts of performers, producers of phonograms 
and broadcasting organizations 
Question 131 
Paragraph 127 of Factual Summary (JOB(05)/172):  We note that Yemen stated the following: 
"Concerning Article 5.2 of the Berne Convention  and the mandatory registration procedures in 
Articles 35-37 of the present Law, the existing Law granted the enjoyment and exercise of copyright."  We would like Yemen to provide more details on Articles 35-37 of its Intellectual 
Rights Law No. 19/1994.  
Answer
: 
Mandatory registration procedures, stated in Articl es 35-37 of the current IPR law, are not included in 
the new IPR draft law, in compliance with TRIPS Agreement. 
(b) Trademarks, including service marks 
Question 132 
Paragraph 130 of Factual Summary (JOB(05)/172 ):  We note that usage of a registered 
trademark requires the owner's prior approval.  A re non-registered trademarks also protected? 
Answer : 
No.  Non-registered trademarks are not protected. 
Question 133 
Paragraph 130 of Factual Summary (JOB(05)/172 ):  We note that "Yemen would include 
factors to determine whether a mark was a so-c alled "known mark" in conformity with the 
TRIPS Agreement."  Would Yemen specify what would be the "factors" in determining whether a trademark is a "known mark".  
Answer
: 
Yemen has already taken into consideration f actors mentioned in Article 16.2 of the TRIPS 
Agreement in the new IPR draft law such as: 
- The knowledge of the trademark in th e relevant sector of the public; and 
- The knowledge of the trademark in the Member  Country concerned which has been obtained 
as a result of the promotion of the trademark. 
Question 134 
Paragraph 130 of Factual Summary JOB(05)/172: We note that "Yemen would include factors 
to determine whether a mark was a so-called "known mark" in conformity with the TRIPS 
Agreement".  Would also non-registere d foreign known marks be protected? WT/ACC/YEM/10 
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 Answer
 
Yes.  Non-registered foreign known marks are also protected. 
4. Enforcement  
Question 135  
In the WTO document relating to implementa tion of the TRIPS Agreement (WT/ACC/YEM/7), 
Yemen stated only that it will review its IPR laws to comply with the TRIPS Agreement and 
that it needs technical assistance to accomplish this  task (see page 11 of this document).  In this 
same document, Yemen repeats this basic respon se in each of the "response boxes" contained 
along side the summaries of the TRIPS enforcement articles (Articles 41-61).  In order to conduct a proper, thorough and complete assessmen t, we need the citations to those specific 
provisions of Yemen's laws/regulations/decrees that provide the enforcement 
measures/remedies called for in Articles 41-61 of TR IPS.  In each "response box" we need to 
know where the current law of the Republic of Yemen provides the proper authority to meet 
each of the TRIPS enforcement obligations detailed in Articles 41-61.  If no such 
laws/regulations exist that provide the authorit y required by a certain article or articles, this 
should be indicated in the proper "response box" in this document (WT/ACC/YEM/7).   
Answer
: 
The revised document WT/ACC/YEM/7/Rev.1 has been circulated. 
Question 136  
Accordingly, we continue to be unable to de termine whether Yemen's IPR enforcement regime 
is compliant with the TRIPS Agreement.  In orde r to even begin such an analysis, we will need 
official translations of the following laws cited by the Republic of Yemen in response to previous 
inquiries: 
(1)  Customs Law (only a draft customs law was provided previously); 
(2) Crimes and Penalties Law (only a non-offici al translation of selected articles of Law 
No. 12 of 1994 was provided previously; 
(3)  Procedures and Civil Enforcement Law (o nly a non-official translation of selected 
articles of Law No. 40 of 2002 was provided previously; 
(4) Republican Decree on Law No. 19 of 1994 on Intellectual Right (referenced on page 31 
of document WT/ACC/YEM/3); 
(5) Republican Decree on Law No. 28 pertaini ng to Procedures a nd Civil Enforcement 
(referenced on page 31 of document WT/ACC/YEM/3); 
(6) Republican Decree on Law No. 19 of 1999 pertaining to Competition Promotion and 
Prevention of Monopoly and Trade Deception (referenced on page 31 of document 
WT/ACC/YEM/3); 
(7) Law No. 25 of 1990 on the Press and Publicat ions (referenced on page 31 of document 
WT/ACC/YEM/3); 
(8) The Press and Publications Law No. 49 of 1993, on the Press regulations (referenced on 
page 31 of document WT/ACC/YEM/3 and in response to Question 151 in document 
WT/ACC/YEM/4); 
(9) Minister of Culture's Decision No. 126 of 1999, on the establishment of the Intellectual 
Rights Department (referenced on page 31 of document WT/ACC/YEM/3); 
(10) Yemeni Evidence Law (referenced in  response to Question 136 in document 
WT/ACC/YEM/4);  WT/ACC/YEM/10 
 Page 45 
 
 
 (11) Yemeni Law on Intellectual Property Righ t (referenced in respon se to Questions 137-39, 
150 and 152 in document WT/ACC/YEM/4); and 
(12) Ministerial Decision No. 353 of 1995 Pertai ning to Implementing By-law on Intellectual 
Property Right Law (previously only a non-official translation was provided). 
Answer : 
Please note that Yemen has stated in each box of  WT/ACC/YEM/7/Rev.1 where the current IPR law 
and other related laws meet the TRIPS enforcement obligations provided in Articles 41-61. However, 
Yemen needs technical assistance and transitional periods as requested in the action plan for the 
implementation of the TRIPS Agreement (WT/ACC/YEM/8).  
Question 137  
We thank Yemen for submitting the detailed acti on plan on TRIPS and note the transition 
periods requested, as well as Yemen's request for technical assistance in this area.  We reserve our right to submit more detailed comments on this area at later stage. 
Answer
: 
Yemen highly appreciates that WTO Members unders tand Yemen's needs for technical assistance and 
transitional periods, and is ready to accomm odate any further questions or remarks. 
VI. TRADE-RELATED SERVICES REGIME 
Question 138 Initial Offer on Services (WT/ACC/SPEC/YEM/2) Horizontal Commitments, Limitations of  Market Access, Commercial Presence: 
Could Yemen explain the rationale behind the esta blished percentage of foreign equity allowed 
in joint stock and partnerships, which is 45 per cent and allowances for other business 
partnerships where it is 49 per cent? 
Answer
: 
The rationale for limiting foreign equity in joint st ock and partnership companies to 45 per cent is to 
encourage the participation of the Yemeni public in holding shares in such companies and promote 
national public investment. 
Question 139 
Horizontal Commitments, Limitations on Na tional Treatment, Commercial Presence: 
Does Yemen expect  to revise its laws and polic ies concerning acquisition of land rights by 
foreign investors either in the medium-term or in the longer-term? 
Answer : 
Currently, Yemen has no plan to revi ew its policies in that respect.  WT/ACC/YEM/10 
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 TRANSPARENCY 
Question 140  
We appreciate the commitment paragraph 174 th at Yemen would ensure the publication of all 
relevant legislation or regulations related to the implementation of the WTO Agreements from the date of accession.  We would like to explore with Yemen how it intends to establish this, and 
we reserve the right to provide more specific comm itment language once the factual basis of this 
section has been established. 
How will Yemen ensure publication of relevant legislation or regulations related to WTO 
implementation? 
Answer
: 
The process of publishing the State's legislations and regulations represents a governmental procedure 
which is an obligation by virtue of the constitution.   Therefore, Law No. 27 of 1993 has been issued, 
which states that publications in the official g azette are an official procedure that ensures the 
information of the public at large.  This mechanism applies to all laws. 
As regards to the distribution of the publications of  the official gazette, it takes place at the widest 
level as they are distributed to all governmental bodies and authorities both at the local and central 
levels.  In addition, the Ministry also makes such  publications available for companies and individuals 
in general either through annual s ubscription contracts or through direct sales at reasonable prices for 
whom they are requested through the Ministry or its branch offices in governorates or from bookshops or newsstands. 
Question 141  
Several WTO Agreements require Members to pub lish proposed rules changes, take public 
comments and incorporate those comm ents into the proposed rule.   
How does Yemen intend to implement these ob ligations?  Does Yemen's law currently require 
ministries to publish draft changes to rules and regulations, accept public comments, and 
incorporate those comments into th e proposed rule or regulation? 
Answer
: 
Yemen publishes draft laws to th e relevant bodies whether from the public or businessmen circles (for 
example) or civil associations whenever possible.   Moreover, Yemen will abide by WTO provisions 
upon accession.  
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