WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 26 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) G ENERAL REMARKS  
1. Djibouti's trade regime reflects the structure of its economy, dominated by services.  The 
absence of any substantial domestic production of goods has until now ju stified the lack of a domestic 
customs tariff to protect local industry.  Neverthe less, the internal consumption tax (TIC), introduced 
primarily for fiscal reasons, can be assimilated to  a customs tariff, with the very limited local 
production being exempt from duties and taxes.  Dj ibouti notified the TIC to the WTO instead of a 
customs tariff.  The TIC is essentially ad valorem , with rates ranging from 0 to 33 per cent and an 
average of 28.2 per cent. 
2. During the Uruguay Round, Djibouti finished binding all its tariff rates.  Other import duties 
and taxes were bound at 100 per cent.  For 21 tariff lines, the applied rates are higher than the bound rates.  In addition, Djibouti still applies the Bru ssels value definition.  The reforms under way should 
lead to implementation of the WTO Customs Valu ation Agreement.  These reforms resulted in the 
establishment of the customs and indirect duties de partment in April 2005 and should eventually lead 
to the introduction of value-added tax.  The ultim ate objective of these reforms is to prepare Djibouti 
for the adoption of the COMESA's common external tariff (CET). 
3. A tax is levied on exports of salt.  There are a number of benefits under the Investment Code, 
but these are little used, inter alia , because of the low level of activities.  A new Free Zone Code was 
drawn up in 2004 in order to revise and rationa lize the relevant regime.  The Government 
Procurement Code gives a preferential margin of 7.5 per cent to 15 per cent of the price to local 
suppliers.  Technical regulations currently apply to  two products, salt and packaged or bottled waters.  
A metrology laboratory was set up in December 2004 but has not yet started to operate. 
4. Under the privatization progra mme initiated in 1996, two enterprises were privatized and 
three made the subject of concessions;  however , three new State-owned enterprises have been 
created.  Djibouti does not have any competition legi slation.  Some products and services ("common 
bread", hydrocarbons, medicines, water, telecommunica tions, electricity, urban transport) are subject 
to price controls.  The industrial property legisla tion dates from the colonial era and is being revised, 
with technical help from the WIPO. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation and procedures 
5. Any natural or legal person wishing to engage in import activities must be in possession of an 
importer's licence.  They must pay the licence fee and a 7 per cent community centime tax (on the 
amount of the licence).  All operators are de facto  members of the Chamber of Commerce, even if 
some of them do not pay the community centime tax.1  Djiboutian nationality is not required to 
engage in commercial activities in Djibouti.  Acco rding to the authorities, foreign traders legally 
established in Djibouti are given national treatment .  In addition, anyone may import any goods for 
personal use provided that they are not officially banned. 
6. The special nature of Djibouti's import duties led to the abolition of its Customs Department 
in 1949.  The Sous-direction des recettes indirectes (Indirect Revenue Unit), which is part of the 
Direction des recettes et des domaines (Office of Revenue and Property) in the Ministry of Finance, 
was responsible for cu stoms matters until the Direction des douanes et des droits indirects 
                                                      
1 Law No. 179/AN/02/4èmeL of 24 August 2002. Djibouti WT/TPR/S/159/Rev.1 
 Page 27 
 
 
(Department of Customs and Indirect Duties) (DDDI) was set up in April 2005.2  In 2000, the Système 
intégré de gestion de la douane (Integrated Customs Management System) (SIGED) was introduced 
in the port.  Because of the SIGED's shortcom ings, on 15 June 2005 Djibouti adopted the 
computerized customs data management system MIRSAL3, as part of its cooperation with the customs 
of the United Arab Emirates. 
7. In order to clear goods for consumption in Djibouti, the national version of the single 
document known as the COMESA customs declarati on (DDCOM) is required irrespective of the 
amount of the imports.  The DDCOM must be accompanied by other documents such as the commercial invoice, the waybill (air waybill for air freight), the packing list, the delivery note from 
the shipping agency and, where applicable, the letter  of credit, the certificate of origin and the pro 
forma invoices (the latter are required by the banks).
4  In some cases, a certificate or approval by a 
competent authority may also be required for pu rposes of sanitary or phytosanitary control. 
8. Until November 1997, depending on their value, th e majority of imported goods were subject 
to preshipment inspection by the company COTECNA, but this measure has since been abolished.  
The Republic of Djibouti is not a member of the World Customs Organization, but is considering 
joining. 
9. Importers are required to file the DDCOM w ith the DDDI, together with the attached 
documents, in order to register th eir declaration and enter the data.5  The DDDI verifies the documents 
and inspects the goods imported, and collects th e import duties and taxes.  According to the 
authorities, the average time take n for the formalities from the entry of the goods into Djibouti until 
their clearance is one half day if the required documentation is in order;  if the clients have a clearance 
credit6, a simplified procedure may apply in order to a llow the goods to be cleared at the importer's 
domicile. 
10. Djibouti still uses the Brussels definition of value, even after having been given the 
transitional period of five years granted to developing countries pursuant to the provisions of Article 20 of the WTO Customs Valuation Agreement.   Depending on the origin of the goods and the 
documents furnished, minimum values are applied.  For khat, a hallucinogenic substance, a reference 
value of DF 450/gross kg. has been set.
7  Arrangements are being made for application of the 
Agreement and the MIRSAL software is well adapte d to this.  According to the authorities, the 
cooperation agreement with the customs authorities of the United Arab Emirates also provides for 
reform of the Djibouti customs. 
11. Within the DDDI, there is a dispute settleme nt service responsible for settling customs 
disputes.  These generally concern value, classification or lack of documentation. 
                                                      
2 Law No. 102/AN/05/5èmeL of 10 April 2005 on reform of the State services responsible for taxation 
and domains. 
3 Information available at:  http://www.dxbcu stoms.gov.ae/content/applications/mirsal.asp 
[23 September 2005]. 
4 A certificate of origin is usually required for im ports from COMESA member countries with a view 
to preferential treatment in Djibouti. 
5 In accordance with an agreement, an Ethiopian customs office has been set up in the port of Djibouti 
in order to carry out formalities relating to the prior declaration of goods in transit to Ethiopia. 
6 Guarantee deposited with the Tr easury and allowing the importer  a specific time for payment. 
7 Decree No. 93-0350/PR/FIN of 7 April 1993. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 28 
 
 
(ii) Customs duties, other taxes and levies 
(a) Overview 
12. Products imported into Djibouti may be subject to the internal consumption tax (TIC), a 
surcharge, a special solidarity tax,  a levy, a business licence fee and a ge neral solidarity tax.  In 2004, 
the TIC generated some 62 per cent of budgetary revenue.8  As domestic production is generally 
limited and exempt from duties and taxes, the TIC serves as a customs tariff.  Reforms are currently 
under way, including the creation of the DDDI, in or der to clarify the situation and prepare Djibouti 
for application of the COMESA's CET at the appropriate time. 
13. As regards customs duties, Djibouti grants at least most-favoured-nation treatment to all its 
trading partners.  Since July 2005, it has been using the 2002 version of the Harmonized Commodity 
Description and Coding System (HS) and the MI RSAL system has been introduced.  The tariff 
currently comprises 5,118 8-digit lines in the HS.  Djibouti only applies ad valorem  rates and does not 
use seasonal tariffs. 
(b) Level and structure of customs duties 
Bound duties 
14. During the Uruguay Round, Djibouti completed the bi nding of all its tariff lines (Table III.1).  
It has bound its duties solely at ad valorem  rates ranging from 0 to 450 per cent.  Duty on non-
agricultural products has been bound at rates ra nging from 0 to 230 per cent and for agricultural 
products the rates vary from 0 to 450 per cent.  Th e simple arithmetic average of the bound rates is 
41.8 per cent (52.4 per cent for agricultural products  and 40 per cent for other products);  97 per cent 
of the lines have been bound at a rate of 40 per cent;  three lines have been bound at the ceiling rate of 
450 per cent;  and only 67 lines have been bound at the 0 per cent rate. 
15. The other duties and taxes have been bound at a ceiling of 100 per cent.  Djibouti has not 
made any commitments in the form of tariff quotas. 
16. Rates have in general been bound at levels c onsiderably above the applied rates, which does 
not make for a stable tariff regime.  The current  variation (13.6 percentage points) between the 
average bound rate and the average MFN rate applie d leaves the authorities with a wide margin of 
manoeuvre to increase the applied rates without exceed ing the ceilings (Table III.1).  Nevertheless, for 
21 tariff lines (wheat flour, meslin flour, oils, motors)9, the applied rates are higher than the bound 
rates. 
                                                      
8 Ministry of the Economy, Finance and Planning, responsible for privatization, Indirect Revenue Unit. 
9 HS tariff lines:  1101 0010, 1101 0020, 2709 0000, 2710 0033, 2710 0039, 8407 3100, 8407 3200, 
8407 3300, 8407 3400, 8408 2000, 8408 9000, 8409 9100, 8507 1000, 8507 2000, 8507 3000, 8507 4000, 8507 8000, 8507 9000, 8706 0000, 8707 1000, 8707 9000. Djibouti WT/TPR/S/159/Rev.1 
 Page 29 
 
 
Table III.1 
Breakdown of MFN rates, 1999 and 2005 
    Uruguay Round 1999 2005 
1 Bound tariff lines (as a percentage of all tariff lines) 100.0 100.0 100.0 
2 Tariff lines eligible for duty-fr ee entry (as a percentage of all 
tariff lines) 0.1 0.1 0.0 
3 Duties other than ad valorem (as a percentage of all tariff lines) 0.0 2.3 0.0 
4 Tariff quotas (as a percentage of all tariff lines) 0.0 0.0 0.0 
5 Duties other than ad valorem,  without any ad valorem  equivalent 
(as a percentage of all tariff lines) 0.0 2.3 0.0 
6 Simple average of rates 41.8 30.8 28.2 
      Agricultural products (WTO definition)a 52.4 24.6 22.5 
      Non-agricultural products (WTO definition)b 40.0 31.7 29.1 
      Agriculture, hunting and forestry (ISIC 1) 40.5 23.2 20.9 
      Mining and quarrying (ISIC 2) 39.6 30.4 30.6 
      Manufacturing (ISIC 3) 42.0 31.2 28.6 
7 Domestic tariff peaks (as a percentage of all tariff lines)c 0.6 0.1 0.0 
8 International tariff peaks (as a percentage of all tariff lines)d 99.6 96.1 88.7 
9 Overall standard variation in applied rates 18.2 8.1 8.6 
10 "Nuisance" rates (as a percentage of all tariff lines)e 0.0 0.0 0.0 
a WTO Agreement on Agriculture. 
b Excluding petroleum. 
c The domestic tariff peaks correspond to du ties that are higher than three times the simple average of all the applied rates 
(indicator 6). 
d The international tariff peaks corres pond to duties that exceed 15 per cent. 
e The "nuisance" rates are rates of ove r 0 per cent but not exceeding 2 per cent. 
Note: Indicators 6 to 10 are calculated on the basis of the lines for which an ad valorem  rate was taken into account. 
Source:  WTO Secretariat calculations, based on data provided by the Djibouti authorities. 
Applied MFN duties  
17. The TIC, assimilated to the applied MFN customs duty, comprises six rates:  33 per cent on 
"luxury" goods;  20 per cent on intermediate goods ;  10 per cent on alcohol in transit or for 
transhipment;  8 per cent on staple food products , pharmaceuticals, vehicles, clothing, household 
electrical goods and capital goods;  5 per cent on to bacco in transit or for transhipment by dhow 
(small sailing ship);  and 0 per cent on banknotes and co ins.  The simple arith metic average of these 
rates was 28.2 per cent in 2005 compared with 30.8 per cent in 1999.  The modal rate (the most 
common) is 33 per cent and applies to over 70 pe r cent of the total number of lines (Chart III.1).10  In 
other words, the majority of imported goods are deem ed to be luxury products and this is clearly 
reflected in the coefficient of variation of 0.3, which indicates low dispersion of rates. 
18. Non-agricultural products (according to the WT O definition) receive the highest protection, 
with an average rate of 29.1 per cent, compar ed with 22.5 per cent for agricultural products 
(Table III.2).  The average rate remains relativel y low in the agricultural sector (20.9 per cent) 
compared with the manufacturing sector (28.6 per cent) and mining (30.6 per cent), when using the 
International Standard Industrial Classification (ISIC, revision 2). 
                                                      
10 This applies to lines in the following 1992 HS chapters: 05, 06, 09, 12 to 15, 17, 18, 20, 22, 24 to 30, 
32 to 60, 63, and 65 to 97. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 30 
 
 
 
(11.3)(15.3)(73.2) 
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 
8 20 33 0102030405060708090100
The figures within brackets correspond to the percentage of all lines. The amount is below 100 because seven lines of 
 the HS do not have any rate in the list provided by the Djibouti authorities.
WTO Secretariat calculations based on data provided by the Djibouti authorities.Chart III.1  
Breakdown of applied MFN duties, 2005
Number of tariff lines  
Note: 
Source  : Percentage
Number of lines  
Cumulative percentage (right-hand scale)
 
 
 
Table III.2 
Brief analysis of the MFN tariff, 2005 
Rates applied in 2005 
Description Number of 
linesa Number of 
lines used Simple average 
of duties 
(per cent) Range of rates 
(per cent) Standard 
variation 
(per cent) Coefficient of 
variation 
Total 5,118 5,111 28.2 8-33 8.6 0.3 
By WTO definitionb             
Agriculture 737 734 22.5 8-33 9.9 0.4 
Live animals and animal products 76 76 17.5 8-20 4.9 0.3 
Dairy products 20 20 17.6 8-20 4.9 0.3 
Coffee, tea, cocoa, sugar, etc. 131 130 23.4 8-33 7.9 0.3 
Cut flowers and plants 38 38 27.7 8-33 10.3 0.4 
Fruit and vegetables 148 147 14.5 8-20 6.0 0.4 
Cereals 18 18 8.0 8 0.0 0.0 
Oilseeds and fats 76 76 21.4 8-33 9.6 0.4 
Beverages and alcohol 40 39 33.0 33 0.0 0.0 
Tobacco 60 60 33.0 33 0.0 0.0 
Other agricultural products 130 130 27.4 8-33 10.4 0.4 
Non-agricultural products 
(excluding petroleum) 4,367 4,363 29.1 8-33 8.0 0.3 
Fish and fish products 108 108 20.1 8-33 2.1 0.1 
Table III.2 (cont'd) Djibouti WT/TPR/S/159/Rev.1 
 Page 31 
 
 
Rates applied in 2005 
Description Number of 
linesa Number of 
lines used Simple average 
of duties 
(per cent) Range of rates 
(per cent) Standard 
variation 
(per cent) Coefficient of 
variation 
Minerals, precious stones and 
metals 336 334 27.9 8-33 8.0 0.3 
Metals 607 607 32.4 20-33 2.8 0.1 
Chemicals and photographic 
products 822 821 32.0 8-33 4.5 0.1 
Leather, rubber, footwear, travel 
articles 140 140 30.2 8-33 5.7 0.2 
Wood, wood pulp, paper and 
furniture 247 246 30.6 8-33 6.2 0.2 
Textiles and clothing 816 816 23.0 8-33 10.2 0.4 
Transport equipment 122 122 29.3 8-33 8.9 0.3 
Non-electrical machinery 512 512 27.8 8-33 10.1 0.4 
Electrical machinery 237 237 31.5 8-33 5.9 0.2 
Non-agricultural products n.e.s. 420 420 32.8 8-33 2.3 0.1 
By ISIC sectorc       
Agriculture, hunting, forestry and 
fishing 296  295 20.9 8-33 11.2 0.5 
Mining and quarrying 107  107 30.6 20-33 5.1 0.2 
Manufacturing 4,714  4,708 28.6 8-33 8.2 0.3 
By stage of processing       
Raw materials 637 636 25.1 8-33 10.3 0.4 
Semi-processed products 1,678 1,674 28.7 8-33 8.8 0.3 
Finished products 2,803 2,801 28.6 8-33 7.8 0.3 
a This analysis is based on a reduced number of lines as seve n HS lines were not included in the tariff provided by the Djibout i 
authorities.  
b There are 14 tariff lines that do not come  under either the WTO definition of agricu ltural products or that of non-agricultur al 
products (these are mainly petroleum products).  
c International Standard Industrial Classification of All Ec onomic Activities (revision 2).  Excluding electricity, gas and wat er (one 
tariff line). 
Source : WTO Secretariat estimates, based on da ta provided by the Djibouti authorities. 
19. In general, duties show mixe d escalation with average rates ranging from 25.1 per cent on 
products at the first stage of processing to 28.7 per cent on semi-finished goods and 28.6 per cent on 
finished goods.  The escalation of duties is negative in the paper industry;  the chemical, petroleum, 
coal, rubber and plastics industries;  some non-metal lic minerals industries;  industries manufacturing 
metal articles, machinery and equi pment;  and other manufacturing indus tries.  As far as the textile 
and clothing industry is concerned, escalation is mixed, with average duties of 33 per cent on 
unprocessed products, 20.8 per cent on semi-finished  products and 25.2 per cent on finished goods 
(Chart III.2). WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 32 
 
 
 
0 5 10 15 20 25 30 35 40 Chart III.2  
Escalation of duties, 2005  
Percentage  
Not applicable  
Unprocessed  
products  
Semi-
processed products
Finished products  
Note: 
Source :  The groups of products are defined by the two-digit ISIC.
 WTO Secretariat calculations, based on data provided by the Djibouti authorities.     All products  
  Agriculture  
Mining and quarrying  
Food products, beverages  
        and tobacco  
Textiles and  
clothing  
  Wood and articles  
of wood  
  Paper and articles  of  
     paper;  printing  and  
publishing  
Chemicals  c
Non-metallic mineral  
products  
 Basic metal  
         industries  
 
           Articles of metal,  
machinery and equipment  
 Other manufacturing  
         industries  
 
 
(c) Other duties and levies 
20. In addition to the customs duty (TIC), a general solidarity tax (IGS) of 5 per cent is levied on 
all imports by persons not in possession of an importe r's licence.  An IGS of DF 100 and another tax 
of DF 50 is levied on each gross kilogram of kha t imported or produced locally.  In addition, a 
business licence contribution of DF 8.4 is levied on each gross kilogram of khat imported or produced 
locally.  This is increased by 7 per cent for th e community centime tax levied on behalf of the 
Djibouti Chamber of Commerce.  A special  solidarity tax for the Somalian people 
(Law No. 77/AN/00/4èmeL), introduced to finance reconciliation with Somalia, was levied on imports 
in 2000, but is no longer in force. 
21. Surcharges ( ad valorem  and standing) apply to tobacco;  alcohol; petroleum products;  khat;  
mineral waters and non-alcoholic beverages;  fruit and vegetable juices (whether imported or 
produced locally) for consumption.  These surcharges are indicated in Table III.3. 
22. A tax also applies to petroleum oils imported or produced locally.  Its rate is determined 
according to the monthly price structure for each prod uct, depending on the trend in petroleum prices 
for the previous month.  There is also a tax on th e sale of hydrocarbons for A1 jet fuel amounting to 
DF 5 per litre and on hydrocarbons (in transit to Somalia), at a rate of DF 32.13 per litre of premium and regular gasoline and DF 7.23 for diesel fuel.
11 
                                                      
11 Order No. 93-0665 of 29 June 1993. Djibouti WT/TPR/S/159/Rev.1 
 Page 33 
 
 
Table III.3 
Surcharges applied in 2005 
Product Rate 
Tobacco  
Manufactured tobacco 54 per cent 
Tobacco extracts and essences 54 per cent 
Alcohol  
Beer DF 4,700/litre of pure alcohol 
Grape must DF 4,700/litre of pure alcohol 
Ordinary grape wine DF 100/litre 
Other grape wine 160 per cent  
Vermouth and other similar wines 160 per cent  
Cider and other fermented bevera ges DF 4,700/litre of pure alcohol 
Undenatured ethyl alcohol DF  4,700/litre of pure alcohol 
Compound alcoholic preparations DF 4,700/litre of pure alcohol 
Other spirits DF 4,700/litre of pure alcohol 
Toilet water containing alcohol DF 300/litre of pure alcohol 
Perfumes and perfume extracts containi ng alcohol DF 2,500/litre of pure alcohol 
Petroleum products  
Regular gasoline and premiu m gasoline DF 49.5/litre 
Diesel fuel DF 6/litre 
Kerosene DF 14/litre 
Lubrifying oils, brake oil, grease DF 100/net kg. 
Khat  
Khat DF 561/gross kg. 
Mineral waters and non-alcoholic beverages  
Natural or artificial mineral waters DF 14/litre 
Aerated waters whether or not containing added sugar or other sweetening matter or 
flavoured   DF 14/litre 
Other non-alcoholic beverages  DF 14/litre 
Fruit and vegetable juices  
Fruit juice  DF 160/net kg. 
Vegetable juice DF 160/net kg. 
Source: Law No. 108/AN/00/4èmeL of 29 October 2000 reforming the General Tax Code. 
23. As part of the reforms to prepare Djibouti for the adoption of the COMESA's CET, the 
Government is planning to eliminate the TIC at th e appropriate time and to  introduce a value-added 
tax (VAT).  According to the authorities, studies ar e being carried out to assess the impact of these 
reforms. 
24. For imports, the basis for levying internal taxes is  the c.i.f. price, to which are added shipping 
costs (unloading, handling, landing fees).  For domes tic products, the taxable base is the unit cost of 
production, with the possible addition of other costs;  the taxable value may also be based on reference 
prices. 
(d) Tariff preferences 25.
 As part of the COMESA free trade zone sin ce 1 November 2000, Djibouti should grant duty-
free access to imports originating in the other co untries.  Nevertheless, the TIC, which Djibouti 
considers to be a domestic tax even though in practice it serves as a customs duty, is not the subject of 
preferences.  Consequently, Djibouti does not grant any import preferences to any country. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 34 
 
 
(iii) Duty and tax concessions 
26. Law No. 108/AN/00/4èmeL provides for the following: definitive import (putting up for 
consumption with or without payment of the TIC)  and definitive re-import;  suspensive regime 
(temporary entry, transit and warehousing);  export and re-export (section (3)(v) below). 
27. Under the definitive import regime, the fo llowing goods are exempt from taxes and 
surcharges:  (i) effects and objects being utilized, including the personal furn ishings of foreigners 
taking up residence in the Republic of Djibouti or  nationals returning permanently from abroad;  
(ii) tools, instruments, agricultural, industrial or commercial machinery belonging to persons or enterprises that have ceased operating abroad and tran sfer their facilities or industry to the Republic of 
Djibouti;  (iii) samples of no commercial value;  (iv) free medical samples marked as such, sent to 
physicians or hospital units by pha rmaceutical laboratories;  (v) adve rtising articles sent by suppliers 
without any financial payment and distributed free of charge, provided that they show the 
advertisement and with the exclusi on of tobacco or alcohol;  (vi) packages of no commercial value;  
(vii) supplies for schools approved by the Governme nt and distributed free of charge to pupils;  
(viii) wheat flour, yeast and improvers to be used in bakeries;  (ix) objects and goods intended for 
diplomatic and consular services or internationa l organizations;  and (x) objects and goods for the 
foreign army units stationed in Djibouti, ente rprises approved under the Investment Code, the 
Djibouti-Ethiopian railway and companies operating cinemas.
12 
28. Goods under the regime suspending taxes, surcha rges and other duties must be covered by a 
bond with the requisite guarantees.13  The suspensive regime may be applied in a number of cases. 
Under the ordinary temporary entry regime (with suspension of taxes and surcharges), goods intended 
for the following uses may be imported:  processing, working or additional labour;  repair;  or use in 
the same state.  Goods entering under the ordinary  temporary entry regime, including goods processed 
under this regime, are in principle intended for export.  A special temporary entry regime allows the partial suspension of taxes and surcharges on imports  of machinery, appliances and motors, including 
transport vehicles, with the exception of private vehi cles, used to carry out works.  At the time of 
import, the importer must make arrangements for th eir re-export or storage (before expiry of the 
period fixed). 
29.
 Suspension of taxes, surcharges or other levies  is also possible when goods are imported or 
exported for transit and for imports  intended for a free zone (section (3)(v)).  The same applies to 
private warehouses (under customs administration control) where goods are only subject to handling 
and warehousing fees.  The goods may re main in the warehouse for two years. 
30. The law provides an industrial warehousing regime  for preparation of goods (with suspension 
of taxes and surcharges) by enterprises pr oducing for export or the domestic market.14  This regime, 
however, is not used.  Under the special storag e regime for hydrocarbons, enterprises storing 
hydrocarbons, linked by pipeline to port installa tions, may store the goods imported with suspension 
of the taxes and surcharges applicable. 
                                                      
12 Title VIII, sections II to V of Law No. 108/AN/00/4èmeL of 29 October 2000 reforming the General 
Tax Code. 
13 The bond includes, in addition to a detailed description of the goods, a commitment on the part of the 
principal concerned and his commitment to meet, within the fixed period an d on penalty of legal proceedings, 
the requirements in the legislative or regulatory texts. 
14 This regime is granted under an order which determines the duration for which it is approved and, 
where appropriate, the volume of goods eligible for it,  the time allowed in the warehouse and the respective 
percentages of "compensatory products" that must be exported outside Djibouti and those which may be consumed in the country. Djibouti WT/TPR/S/159/Rev.1 
 Page 35 
 
 
31. Goods for which taxes, surcharg es and other duties have been suspended may be the subject 
of a certain degree of treatment under clearly defi ned conditions.  If they are put up for consumption 
(in Djibouti), goods that enter under a suspensive re gime must pay the taxes, surcharges and other 
levies applicable.  In private warehouses, and in  the special hydrocarbons storage depot, such 
treatment is in principle prohibited. 
32. Goods re-imported in the same state by the orig inal exporter or on his behalf are free of taxes 
and surcharges. 
(iv) Rules of origin 
33. Djibouti does not have any non-preferential ru les of origin.  The COMESA Treaty, which 
Djibouti has signed, provides preferential rules of or igin (Chapter II(5)(ii)(a)).  The Djibouti Chamber 
of Commerce issues certificates of origin for D jiboutian products eligible for non-reciprocal 
preferences for export or goods in transit.  For CO MESA products, certificates are issued by the MCI. 
(v) Prohibitions, quantitative restrictions and import licences 
34. As a general rule, the import of  any product deemed dangerous for public order, security, the 
population's health or the environment is prohibited,  unless the competent aut hority issues a waiver.  
The prohibitions are in general those contained in the international agreemen ts to which Djibouti is 
party, namely, CITES15, the Stockholm Convention16, and the Rotterdam Convention.17  In practice, 
the import of goods covered by these agreements ge nerally requires a licence.  This applies to 
endangered species of wild fauna and flora (Annex I to the CITES) , and products covered by the 
Montreal Protocol on CFCs (chlorofluorocarbons).18 
35. According to current legislation, the only pr oducts whose import is specifically banned are 
right-hand drive vehicles19, and non-biodegradable plastic bags.20  Cattle feed requires an 
authorization from the MCI in order to protect a domes tic industry that is currently being liquidated.  
Imports of medicines, arms and ammunition are subject  to licences issued by the Ministry of Health 
and the Ministry of the Interior, respectively.  Impor t of khat requires a licence issued by the MCI;  it 
may only be imported by air or by land through the Galilée border post (Ali-Sabieh district).21 
36. According to the authorities, Djibouti does not apply any quantitative restrictions on imports. 
(vi) Anti-dumping, countervailing and safeguard measures 
37. The Republic of Djibouti does not have any legislation on, and has not taken any, 
anti-dumping, countervailing or safeguard measures. 
                                                      
 15 Convention on International Trade in Endangered Species of Wild Flora and Fauna. 
 16 Stockholm Convention on Persistent Organic Pollutants. 
 17 Rotterdam Convention on the Prior Informed Consent Procedure. 
 18 Decree No. 2004-0066/PR/MHUEAT of 22 April 2004.  The import of refrigeration appliances 
containing the substances mentioned in Annex II will be banned as of 2010. 
 19 Order No. 97-0760/PRE of 17 November 1997. 
 20 Order No. 99-0059/PR/MCI of 14 January 1999. 
 21 Order No. 92-0359/PRE of 20 April 1992. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 36 
 
 
(vii) Standards and other technical requirements 
(a) Standards, testing and certification 
38. The Service de contrôle de la qualité et des normes (Quality Control and Standards Unit) 
(Direction du commerce, des normes et de la qualité (Department of Trade, Standards and Quality)) 
in the Ministry of Trade, Industr y and Handicrafts was set up with a view to the following:  protecting 
consumers;  promoting exports;  defending fair  competition among traders and suppressing fraud;  
drawing up and publishing standards;  certifying pro ducts and processes;  quali ty assurance;  testing 
(laboratory analyses);  metrology (weights, measures, volume);  accrediting laboratories;  and taking part in international work on standardization and re lated activities.  The tasks given to this Unit are 
divided between two sections, name ly, the standardization section a nd the quality control section.  
The Unit acts as the focal point and the notification authority in the context of the WTO Agreements 
on SPS measures and technical barriers to trade.  It is empowered to issue permits, licences and 
marketing authorizations.
22 
39. In spite of this institutional framework, until recen tly very little had been  done with regard to 
standardization, technical regulations, testing, certif ication and control in the Republic of Djibouti.  
Consequently, activities in these areas remain marg inal and Djibouti has few technical regulations.23  
In 2002, however, a committee was set up to review st andardization with the intention of drawing up 
domestic legislation in the following areas (although  it has had little success so far):  (i) protecting 
consumers and suppressing fraud;  (ii) standardization;  and (iii) metrology.24 
40. A project to introduce a legal metrology system is being implemented with UNIDO financing.  
The objective is to introduce a system for contro lling and calibrating measuring instruments used by 
retailers and industrialists.25  In December 2004, a metrology laboratory was set up within the 
Ministry of Trade.  It has not yet started to opera te because the MCI is preparing new legislation on 
metrology. 
41. Salt and water are the two products currently subject to technical regulations (mandatory 
standards).  Djibouti is considering joining the African Regional Organization for Standardization 
(ARSO) and the International Organization for Standardization (ISO). 
(b) Sanitary, phytosanitary and environmental measures 42.
 Djibouti has ratified a number of internati onal conventions relati ng to sanitary and 
phytosanitary matters and environmental protecti on:  the Framework Convention on Climate Change 
and the related Kyoto Protocol;  the Convention to Combat Desertification; the International Plant 
Protection Convention;  the Convention on Biolog ical Diversity and the Cartagena Protocol on 
Biosafety;  the Phyto-sanitary Convention for Africa;   the Vienna Convention for the Protection of the 
Ozone Layer and the Montreal Protocol on Ozone -Depleting Substances;  the Stockholm Convention 
on Persistent Organic Pollutants;  the Rotterd am Convention on the Prior Informed Consent 
Procedure;  the Basel Convention on the Trans boundary Movement of Hazardous Wastes and their 
                                                      
 22 Law No. 102/AN/700/4èmeL of 25 October 2000, on the organization and operation of the Ministry of 
Trade, Industry and Handicrafts.  
23 Technical regulations are published in  the form of presidential decrees. 
 24 Order No. 2002-0757/PR/MCI of 17 October 2002 establishing the Comité de réflexion sur la 
normalisation (Committee to review standardization). 
 25 UNIDO (2003). Djibouti WT/TPR/S/159/Rev.1 
 Page 37 
 
 
Disposal;  the Ramsar Convention on Wetlands;  and the Convention on International Trade in 
Endangered Species of Wild Flora and Fauna (CITES).26 
43. As a general rule, any material liable to intr oduce disease and/or infections may not be 
imported into the Republic of Djibouti.  The same  applies to hazardous waste.  According to the 
legislation in force, in order to be recognized as suitable for consumption, animal foodstuffs or 
foodstuffs of animal origin, whether imported or produced domestically, must meet certain 
microbiological and chemical criteria established in orders.27  The criteria are in principle controlled 
according to defined procedures.  In addition, iodized salt may not be marketed/imported unless it is 
accompanied by a quality certificate showing the iodi ne content, set between 20 to 40 mg/kg. (or 
between 34 and 66 mg/kg. of potassium iodide).28 
44. The import and sale of non-biodegradable plastic  bags has been strictly prohibited since 
31 January 199929;  however, such bags are still being imported.  Trade in (as well as hunting and 
capturing of) all wild species, their carcasses, skin s and trophies are prohibited in the Republic of 
Djibouti.  If they are in transit through Djibouti, animals listed in Annex I to the CITES or their products must be covered by a CITES export perm it issued by the country of origin of the 
animals/products and by a CITES import perm it issued by the country of destination.
30  The import of 
toxic or hazardous substances requires a special au thorization from the Ministry responsible for the 
environment.  Transport, storage, sale and use of  these substances must comply with the conditions 
defined by the Ministry. 
45. The import of products on Lists A(1) and (C) of  the Annexes to the Montreal Protocol is 
subject to annual quotas defined and administered by  the Ministry responsible for the environment, by 
means of a prior authorization granted subject to an opinion by the Minister for Trade and in consultation with the National Ozone Committee.  The import of refrigeration appliances, whether 
used or new, containing certain (specified) ozone -depleting substances will be prohibited as of 2010.
31  
The appliances concerned are the following:  mo bile air-conditioning equipment for cars, lorries 
(whether or not incorporated into the vehicle);  refrigeration and air-conditioning appliances, heat 
pumps for domestic or commercial use (refrigerato rs, ice-cream machines, freezers, dehumidifiers, 
water coolers, machines for manufacturing heat pumps );  sprays other than those used for medicinal 
purposes;  portable fire extinguishers;  compressors for refrigerators;  freezer cabinets, chest-type 
refrigerators, of a capacity not exceeding 800 litres;  freezer cabinets, cupboard-type refrigerators, of a 
capacity not exceeding 900 litres;  and other materi al, equipment or appliances for refrigeration. 
46. Marketing of packaged or bottled waters for human consumption is subject to a marketing 
licence (valid for one year) issued by the Quality  Control and Standards Unit, on the basis of a 
conformity certificate attesting that the national standards fixed have been met, following laboratory 
                                                      
 26 Available at:  http://www.presidenc e.dj/page460.html [12 April 2005]. 
 27 Orders No. 2000-0727/PR/MAEM and No. 2000-0728/PR/MAEM of 23 September 2000.  The 
foodstuffs are:  (i) meat;  (ii) ready-minced meat, cooked meats, delicatessen products, dumplings, pre-cooked 
dishes, dehydrated soups;  (iii) poultry meat;  (iv) fi sh products;  (v) egg products, cakes, custards;  
(vi) fermented milk (yoghourt, kefir), jellied milk, pasteu rized fresh cheese, pasteurized fresh cream;  ices and 
ice creams, casein and caseinates;  (vii) cans of animal  foodstuffs or foodstuffs of animal origin;  and 
(viii) processed animal foodstuffs or foodstuffs of animal origin.  
28 Decree No. 97-0189/PR/MS of 27  December 1997, as amended by  Decree No. 2002-0095/PRIMCIA 
of 2 June 2002. 
 29 Order No. 99-0059/PR/MCI of 14 January 1999. 
 30 Decrees No. 2001-0098/PR/MHUEAT of 27 May 2001 approving the strategy and national action 
programme for the conservation of biodiversity and No. 2004-0065/PR/MHUEAT of 22 April 2004 on the 
protection of biodiversity.  
31 Decree No. 2004-0066/PR/MHUEAT of 22 April 2004. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 38 
 
 
tests.  Imported water must be accompanied by a sanitary certificate and a certificate of conformity 
with the national standards set.  For each first app lication to import, the Quality Control and Standards 
Unit undertakes analyses to control the product.  A fee is payable for issue of the documents 
amounting to DF 5,000 for the conformity certificate and DF 15,000 for the marketing licence.32 
47. The following products are subject to sanitary inspection upon export:  live animals, cattle, 
abattoir by-products, stuffed animals or trophies;  she lls, mother of pearl and corals;  shellfish;  and 
hides and skins.  Ivory and animal skins must be accompanied by a certificate of origin and a health certificate issued by the country of origin.  Food products of animal origin must be accompanied by a sanitary certificate upon both import and export. 
(c) Marks, labelling and packaging 
48.
 Labels on bottles of natural mineral water or sp ring water must show the geographical origin 
of the underground source from which they come; the content in dissolved mineral salts and ion fluoride (expressed in parts per million – ppm);  the detailed composition of the eight major elements;  
the pH and total mineral content;  the serial numbe r;  and, where applicable, whether fluorine or 
nitrogen has been added.  In addition to these ba sic indications (with the exception of any additions 
and the source of origin), labels on mineralized wa ters must show the date of production and the sell-
by date, as well as the origin of the untreated water and any treatments it has undergone.  Water to 
which minerals have been  added and intended for consumption must be distinguished from natural 
mineral water or spring water.
33  A law on labelling is currently being drafted. 
49. The packaging of iodized salt for human consumption must bear the following indications:  
iodized cooking salt, the net weight, the mode of st orage, the date of manufacture and the number of 
the batch, the company name and the address of the manufacturer.34  In addition, the packaging of 
hazardous chemicals must show the symbols and information concerning the hazard and indicate 
safety measures.35 
(viii) Government procurement 
50. In Djibouti, government procurement is governed by Law No. 75/AN/95/3èmeL of 
14 February 1995 applicable to contracts for works, s upplies, transport and services.  It provides for 
three ways of awarding contracts, namely, open bidd ing procedures, restricted bidding procedures and 
simple agreement.  The contracting authority draws up, prepares and publishes the invitation to tender 
according to the method adopted, but must justify its choice to the Commission nationale des marchés 
publics (National Government Procurement Commission) (CNMP).  Ministries may award contracts 
for an amount not exceeding DF 5 million (US$28,090)  by means of a purchase order.  For such 
contracts, at least three pro-form a invoices must be compared, and th e contract awarded to the lowest 
bidder. 
51. The most commonly used method of awarding contracts is an open bidding procedure, which 
is mandatory for amounts exceeding DF 15 million (US$84,270).  Where the contract has special 
features, a restricted bidding procedure is used.  Th e contract is awarded to the bidder deemed capable 
of carrying out the contract whose bid complies with  the criteria laid down and is the lowest.  The 
                                                      
 32 Decree No. 2001-0010/PR/MCIA of 15 January 2001 regulating packaged waters for human 
consumption, and Order No. 2002-0420/PR/MCIA of 2 June 2002.  
33 Decree No. 2001-0010/PR/MCIA of 15 January 2001 and Order No. 2002-0420/PR/MCIA of 
2 June 2002. 
 34 Decrees No. 97-0189/PR/MS of 27 December 1 997 and No. 2002-0095/PR/M CIA of 2 June 2002. 
 35 Decree No. 2003-0212/PR/MHUEAT of 18 October 2003. Djibouti WT/TPR/S/159/Rev.1 
 Page 39 
 
 
simple agreement procedure mainly applies to purchas es which, for reasons of emergency, may not be 
delayed.  The CNMP organizes public sessions for ope ning the bids, which all bidders may attend.  It 
is not obliged to give its re asons or to inform those whose bids have not been accepted. 
52. The law provides for a preference of 7.5 per cent to 15 per cent (of the price) for domestic 
suppliers.  Contracts financed by in ternational institutions are subject to the procedures they impose.  
Notice of invitations to tender, as well as the no tice of award of the contract, are published in the 
newspaper " La Nation ", which is published three times a week.  Appeals against the award of 
contracts may be lodged with the Administrative Court. 
53. Djibouti is neither a party nor an observer to the plurilateral agreement on government 
procurement and has not announced its intention to accede to it. 
(ix) Other measures 
54. According to the authorities, Djibouti is not involved in any barter agreements nor in any 
export restraint agreements.  There are no mandatory reserves for any product. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
55. All goods exported must be the subject of a deta iled declaration made to the DDDI in order to 
place them under a regime.  Ministerial orders determ ine the form and content of the declarations and 
the documents that must be attached thereto.36  Status as a trader gives the right to engage in import, 
export and re-export transactions.  According to the authorities, producers are free to export or re-
export their products provided that there is no shorta ge of these on the domestic market in the case of 
staple goods.  The exceptions are coral and sawn timber (section (iii) below). 
(ii) Export taxes 
56. Djibouti levies an export tax of DF 500/tonne on salt. 
(iii) Export prohibitions, restrictions and licences 
57. In Djibouti, the export of sawn timber and cora l is prohibited.  According to the authorities, 
apart from the restrictions imposed under the international agreements signed by Djibouti 
(section (2)(vii)(b) above), there are no other export restrictions.37  Djibouti does not currently require 
export licences. 
(iv) Voluntary export restraint 
58. According to the authorities, Djibouti has not concluded any voluntary export restraint 
agreements for any products. 
(v) Free zones 
59. The free zone regime provides a number of be nefits;  however, its objectives are far from 
having been achieved (Chapter II(7) and Table II. 2).  There were numerous laws which the 
                                                      
 36 Law No. 108/AN/00/4èmeL of 29 October 2000. 
 37 Decree No. 2004-0065/PR/MHUEAT of 22 April 2004 on the protection of biodiversity. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 40 
 
 
establishment of a free-zone port authority and a ne w Free Zone Code terminat ed.  Nevertheless, the 
free zone is still in its early stages, which expl ains the lack of statistics on its activities. 
60. In the free zone, taxes and surcharges payable for consumption are suspended.  They become 
payable if the goods are imported from the free zone  to Djiboutian customs territory.  With the 
exception of fairs, retail sale is not allowed in th e free zone.  Under the new Code, all operations are 
authorized in the free zone.  Operations authori zed under the former regime included the following: 
assembling, preparing, packaging, cleaning, sorting,  mixing, screening, separating, roasting, crushing, 
grinding, spraying, or any other processing or complementary labour. 
(vi) Export subsidies, export promotion and financing 
61. According to the authorities, Djibouti does not subsidize its exports.  The main export 
promotion measures are the incentives described in the Investment Code (Chapter II(6)) and the 
customs regimes covered by Law No. 108/AN/00/4èmeL reforming the General Tax Code 
(section (2)(iii)).  While the industrial warehouse re gime is applicable to all enterprises producing 
either for the domestic market or for export, the ordinary temporary entry regime allows the suspension of taxes and surcharges fo r exporting enterprises in particular. 
62.
 For the moment, the MCI and the Chamber of Commerce are responsible for promoting 
exports.  Nevertheless, there have only been marginal promotion activities through fairs. 
63. The African Trade Insurance Agency (ATI A), to which Djibouti has belonged since 
July 200438, was set up in 2001 and has been in operation since the beginning of 2002.  It provides 
insurance facilities for periods of up to five years against the political risks of commercial 
transactions.39  The target markets are foreign companies or member countries exporting goods and 
services to other members, as well  as foreign banks and financial in stitutions which finance exports to 
member countries.  The ATIA also offers credit insurance to cover the risk of non-payment on domestic or export markets for up to 90 per cent.
40  State-owned companies, semi-public companies 
or companies controlled by the State may also be covered, but independent entities are excluded. 
64. The eligible transactions must usually involve  cross-border movement of goods and services 
and be related to production in the member country.41  More precisely, the transactions comprise the 
following:  sale of goods and services on credit;  confir mation of letters of credit;  leasing;  credit for 
companies' working capital;  import and export of ca pital goods, goods to be stored with a view to 
sale or goods to be processed;  a nd credits granted by a foreign or local lender.  The maximum limit of 
the transaction to be insured varies according to  the country;  cover may extend to up to 100 per cent 
                                                      
 38 Law No. 70/AN/04/5èmeL of 3 July 2004.  The founding memb ers of the ATIA, whose head office is 
in Nairobi, are:  Burundi, Kenya, Malawi, Rwanda, Uganda, the United Republic of Tanzania and Zambia.  All 
African countries may belong to it.  
39 The following are some of the political risks covered: war and civil disturbances in the country of the 
buyer or the transit country; embargoes or any other sanctions imposed by the United Nations Security Council 
or any measures having equivalent effect;  action or  failure to act by the government leading to the non-
convertibility of the local currency or inability to transf er currency abroad;  imposition of exchange controls;  
inability to purchase foreign currency with the national currency of the country of the buyer and/or the country 
of transit; expropriation, attachment of goods, ban on sales or export for reasons other than public health, safety, 
well-being or environmental protection;  government interference in entities that have guaranteed obligations;  
cancellation of import or export licences;  import or export  restrictions;  discriminatory imposition or increase of 
import and export taxes;  interference (including by the government) in the shipment of the goods;  risk of 
diversion.  Natural disasters are not covered. 
 40 The ATIA is associated with Gerling NCM, th e second largest credit insurer in the world. 
 41 The goods must originate in a member country (with the possibility of regional origin). Djibouti WT/TPR/S/159/Rev.1 
 Page 41 
 
 
of the value of the transaction.  For exports, the term of the facility is one year (although a longer 
period may be granted).  The premiums are ar ound 0.4 to 2.5 per cent per annum of the amount 
involved, with a minimum of US$250 for export transactions.42  According to the authorities, 
exporters have not yet sought the services of the ATIA as Djibouti has only just joined it. 
65. The Islamic Corporation for the Insurance of I nvestment and Export Credit (ICIEC), of which 
Djibouti has been a member since July 200443, was set up in 1995 and offers the following:  (i) export 
credit insurance against commercial and non-commercial  risks;  (ii) insurance or reinsurance of 
investment against non-commercial risks (country);  a nd (iii) reinsurance of export credit agencies in 
member countries. 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
66. The main incentives are those provided under the Investment Code and the free zone regime 
(Chapter II(6) and (7)).  In addition, f aced with a lack of finance, in 2002 the Fonds de développement 
économique de Djibouti (Djibouti Economic Development Fund) (FDED) was set up.  Its main 
objectives are the following:  (i) to finance the pr ivate sector's development projects or programmes 
through direct loans but also through technical assi stance, particularly for preparing projects, with 
priority being given to the development of agricu ltural and livestock activities, fishing, tourism, 
services and small and medium-sized industries pr ocessing domestic raw materials;  and (ii) to 
finance projects that present sufficient guarantees of  financial balance and are likely to promote the 
country's socio-economic development.44 
67. The FDED is a public enterprise of a commercial nature whose task is to promote the private 
production sector.  It gives potential promoters loan s amounting to DF 3 to 50 million to be refunded 
over a period ranging from five to 12 years on preferential terms not exceeding 8 per cent (5 per cent or lower for the primary sector).  The FDED's res ources come chiefly from a capital contribution from 
the State (DF 300 million) and lines of credit from in ternational organizations, such as the Kuwaiti 
Arab Economic Development Fund (US$5 million), to finance SMEs.
45  The eligibility criteria for 
loans are the profitability of the project, its econom ic impact on job creation and in terms of import 
substitution and the priority nature of the investme nt sector for the country.  The FDED comes under 
the Ministry of Finance and is supervised by the Ce ntral Bank.  At the time of finalizing this report, 
the FDED had not yet financed any projects but had received some hundred applications. 
68. In order to restructure and extend the scope of "alternative financing", the Fonds social de 
développement (Social Development Fund) (FSD), financed  by the African Development Bank, was 
set up in 2000.  Its objective is to support the G overnment's efforts to alleviate poverty by granting 
loans, providing basic social services and buildi ng institutional capacity.  The Fund gives lines of 
                                                      
 42 WTO (2004). 
 43 Law No. 71/AN/04/5èmeL of 3 July 2004.  Available at:  h ttp://www.isdb.org/french_docs/idb_home/ 
q_ans6.htm#114 [7 April 2005].  
44 Decrees No. 2000-0140/PRE of 30 April 2000;  No. 2002-0133/PR/MEF of 7 July 2002;  
No. 2003-0034/PR/MEF of 3 March 2003;  No. 2003-0168/MEFPCP of 14 August 2003;  and Order 
No. 2002-0486/PR/MEFCP of 7 July 2002.  
45 Line of credit granted at a rate of 2.5 per cent for 20 years, with a grace period of five years. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 42 
 
 
credit to non-governmental organizations (NGOs) at an  interest rate of 3 per cent.  The latter then 
grant loans, at an 18 per cent rate of interest, to  micro-entrepreneurs, who form solidarity groups.46 
(ii) Competition policy and price controls 
(a) Competition policy 
69. Djibouti does not have any special law on competition.  The Government plans to draft one, 
but for the moment the relevant national technical  competence is lacking.  The Commercial Chamber 
of the Court of First Instance rules on competitio n disputes on a case-by-case basis.  A regional 
competition policy is being introduced within the COMESA framework (Chapter II(5)(ii)(a)). 
70. According to some sources, the lack of a comp etition policy is being e xploited by institutions 
such as banks through the interest  rate on the loans they grant. 
(b) Price regulation and controls 71.
 Currently, the price of common bread47, telecommunications, electricity and water services, 
postal services and urban trans port are controlled by the State.48  The price of petroleum products at 
the pump was determined by presidential decree until 1999;  currently, the price structure is drawn up 
by the Ministry of Finance and discussed with pr ivate operators.  The profit margin on medicines and 
minor medical articles (essentials) is controlled by the Centrale d'achat des médicaments et matériels 
essentiels (Central Procurement Agency for Essential Medicines and Materials) (CAMME), whose 
objectives are, inter alia , to ensure that health units in the pu blic and semi-public sectors, as well as 
those in the non-profit-making private sector, can obtain essential medicines and medical goods at a social price that is nevertheless sufficient to a llow operations and to build  up reserves to cover 
fluctuations in the market price of pharmaceutical s.  The CAMME is responsible for approving the 
method for calculating the selling price of pharmaceutical s;  determining the transfer price of essential 
medicines and the purchasing procedures;  and organizing the management of the stocks.
49 
(iii) State enterprises and privatization 
72. The State still plays an important role in economic activities.  There are currently some 
25 State-owned enterprises, of which only one has joint capital, while the rest are wholly owned by 
the State.50  State-owned enterprises are active in industry (including the agro-food industry), mining, 
hotels, financial services, telecommunicati ons and transport and warehousing services. 
73. Law No. 130/AN/96/3èmeL51 lays down the terms and conditions for the privatization of 
holdings, enterprises, assets or activities belonging to the public sector.  A government corporation as 
such cannot be privatized.  It must first be liquida ted and its assets transfe rred to an existing State-
                                                      
 46 Decree No. 2000-0140/PR/MESN of 29 May 2000.  Currently, eight of the nine micro-credit 
institutions are operating in partnership with the FSD. 
 47 Decree No. 2004-0130/PR/MCIA of 14 July 2004 fixes the selling price of a loaf of bread at DF 20. 
 48 Decree No. 2003-0031/PR/MCCC of 27 February  2003 and Order No. 2001-0021/PR/MAEM of 
8 January 2001.  
49 Decrees No. 2004-0059/PR/MS of 13 April 2004, No. 97-0039/PR/SP of 3 April 1997 on the 
publication and requirements for updating the list of essential medicines, and Order No. 2003-0526/PR/MS of 
8 July 2003.  
50 State-owned enterprises are governed by Law No. 130/AN/96/3èmeL of 15 February 1997 
establishing the terms and conditions for the privatizati on of State holdings, enterprises, assets or activities. 
 51 Law of 15 February 1997 establishing the terms and conditions for the privatization of State 
holdings, enterprises, assets or activities. Djibouti WT/TPR/S/159/Rev.1 
 Page 43 
 
 
owned company or one to be created, which can then be the subject of privatization.  The conditions 
for liquidation and transfer of assets must be de fined in a decree.  The buyers cannot under any 
circumstances be made liable for the liabilities of priv atized companies.  A decision must be taken to 
this effect on a case-by-case basis in the privatization decree.52  Each decree also states which of the 
following procedures or a combination thereof is to be  used for privatization:  (i) public offer of sale 
by transferring to the public shares in the companies to be privatized;  (ii) restricted or open national 
or international bidding procedure for the transfer of blocks of shares, the majority or all the shares making up the capital of the companies to be priv atized;  (iii) restricted or open national or 
international bidding procedure for the transfer of operations or the granting of a concession or the 
leasing of the company or activities to be privatized;  (i v) direct sale of all or part of the company, an 
activity or an asset to be privatized, on an excep tional basis and only when justified by the need to 
turn to buyers that have decisive advantages su ch as financial, technical and/or commercial capacity
53;  
and (v) sale by public auction to the highest bidder for transfers of tangible assets, movable or fixed 
assets and equipment. 
74. A "special share" in the capital of companies to  be privatized may be established and held by 
the State for a maximum period of five years, giving it control through a right of veto over decisions 
by the board of directors.  A right of preference may be granted to natural or legal private persons 
subject to Djiboutian law.  In particular, the acqui sition of 10 per cent of the total number of shares 
transferred may be reserved as a priority for thos e employed (for at least the past 24 months) by the 
privatized company at a price that is 25 per cen t below the selling price to the public and with 
payment deferred for a maximum of three years.  Em ployees of a public service, part of the central 
administration or a government corporation have a right of first refusal to buy all or part of the assets 
of the service being privatized, and have th e same preferences as those mentioned above. 
75. A Comité national de privatisation (National Privatization Committee) (CNP), under the 
supervision of the Minister for Finance, has been set up to implement the privatization programme.  The CNP estimates the value of the companies to be pr ivatized and the assets to be sold or transferred 
to the private sector, or orders such a valuation to  be made.  The privatization decrees are prepared by 
the Minister for Finance on the basis of the valuation reports. 
76.
 The profits of such sales are kept in a speci al ex-budgetary account opened for this purpose in 
the Treasury's books, and are mainly used to finance expenditure directly rela ted to privatization, 
particularly the payment of any restructuring cost s, settlement of accounts and redundancy payments.  
If there are any annual surpluses in this ex-budgetary  account, these are incorporated into the general 
budget during the next financial year. 
77. The privatization process began in 1997 and origin ally envisaged the sale of 13 enterprises or 
institutions.54  To a certain extent the adoption on 23 September 2001 of Decree 
No. 2001-0191/PR/MEFPP on the privatization strate gy for the major infrastructural enterprises 
managed by the State has revived the impl ementation of the privatization programme.55  Between 
1997 and September 2005, two enterprises were privatized ( Pharmacie de l'Indépendance  and the 
Djibouti Sheraton Hotel), three were the subject of a concession (port, airport and fishing port), four were liquidated and two are in the process of bei ng liquidated.  Three new State-owned enterprises 
were created, however (SIEMAS, cement works, CNC) (Table III.4). 
                                                     
 
 52 Article 5(c) of Law No. 130/AN/96/3èmeL of 15 February 1997. 
 53 Use of this exceptional procedure can only be en visaged when it has been explicitly authorized and 
justified in the privatization decree. 
 54 Law No. 130/AN/96/3èmeL of 15 February 1997 and Decree No. 99-0077/PR/MFEN of 8 June 1999. 
 55 Djibouti Électricité (EDD), Office national des Eaux  (National Water Board) (ONED), Djibouti 
International Airport and Djibouti Télécom. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 44 
 
 
78. In June 2000, a contract for the management  and operation of port facilities (management 
concession agreement) for Djibouti International Au tonomous Port (PAID) was granted to DP World 
(formerly Dubai Port International) for a period of 20 years.  According to the Diagnostic Trade 
Integration Study, there do not appear to be any contractual obligations on DP World to invest.  The 
terms of this contract are confidential.  Since 15 June 2002, the management of Djibouti International 
Airport has been given to DP World for a period of 20 years.56  In April 2004, operation of Djibouti's 
fishing port was entrusted to the Djibouti Ma ritime Management and Investment Company.57 
Table III.4 
State-owned enterpri ses, September 2005 
Company Activity Share of the capital 
held by the State Progress of the 
privatization project 
Société industrielle des eaux 
minérales d'Ali-Sabieh (SIEMAS) Sale and export of mineral water 100 per cent New enterprise. 
Société d'exploitation des eaux 
de Tadjourah (SEET) Production of mineral water  100 per cent Liquidated. 
Cimenterie d'Ali-Sabieh Ceme nt 100 per cent Being set up. 
Imprimerie nationale de Djibou ti Printing 100 per cent Financial situation being stabilized with a 
view to granting a concession or 
management contract. 
Laiterie de Djibouti (LDJ) Dairy products 100 per cent Liquidated. 
Pharmacie de l'Indépendance (PI) Pharmacy  Privatized in 1999 through sale of assets 
after an international bidding procedure, 
sold to the highest bidder. 
Société des aliments du bétail 
(SAB) Production  and marketing of 
cattle feed 100 per cent Liquidated. 
Compagnie nouvelle de 
commerce (CNC) Production of ceramics 100 per cent New enterprise.  
Centrale d'achat des 
médicaments et matériels essentiels (CAMME) Purchase and sale of medicines  100 per cent .. 
Banque de développement de 
Djibouti (BDD) Banking 100 per cent  Being liquidated.  
Fonds de développement 
économique de Djibouti (FDED) Financing 100 per cent Not yet operating. 
Électricité de Djibouti (EDD) Electricity 100 per cent Financial situation being stabilized with a 
view to granting a concession or management contract. 
Office national des eaux de Djibouti (ONED) Water 100 per cent Financial situation being stabilized with a 
view to granting a concession or management contract. 
Djibouti  Télécom (DT) Telecommunications, 
fixed and mobile telephony 100 per cent Being restructured. 
In October 1999, the national telecommunications activities of the 
former Office des postes et 
télécommunications (Post and 
Telecommunications Board) (OPT) were 
merged with the activities of the Société 
des télécommunications internationales de Djibouti (Djibouti International 
Telecommunications Company) (STID). 
Privatization envisaged (sale of shares) through a bidding procedure and the 
granting of a mobile telephony licence. 
Table III.4 (cont'd)
                                                      
 56 Decree No. 2003-0041/PR/MET of 17 March 2003 approving the contract for management of the 
airport.  
57 Decree No. 2004-0027/PR/ME FPP of 25 February 2004. Djibouti WT/TPR/S/159/Rev.1 
 Page 45 
 
 
Company Activity Share of the capital 
held by the State Progress of the 
privatization project 
Port autonome international de 
Djibouti (PAID) Port services 100 per cent Since June 2000, the management and 
operation of the port facilities have been 
given to DP World for a period of 20 years. 
Port de pêche de Djibouti Development of fishing and 
aquaculture 100 per cent Since April 2004, a concession has been 
given to Djibouti Maritime Management 
and Investment Company. 
Aéroport international de 
Djibouti (AID) Airport 100 per cent Since 15 June 2002, the management and 
operation of the airport facilities have been 
given to DP World for a period of 
20 years. 
Chemin de fer Djibouti – 
Éthiopie. Rail transport Owned by the two 
States (50 per cent 
each) Negotiations under way to allow a 
concession to be granted. Invitation to 
tender issued. 
Poste de Djibouti Postal services 100 per cent Financial situation being stabilized with a 
view to granting a concession or 
management contract.  
Société internationale des 
hydrocarbures de Djibouti 
(SIHD) Petroleum 100 per cent .. 
Société hôtelière d'État de 
Djibouti (SHED) Hotel services 100 per cent Being liquidated. 
Djibouti Sheraton hôtel Hotel services  Sale of the building to the Société 
djiboutienne d'hôtellerie et du tourisme (Djibouti Hotel and Tourism Company) 
(SODHET) in 1999  
Office national 
d'approvisionnement et de 
commercialisation (ONAC) Purchase and sale of foods tuffs 100 per cent Liquidated 
Société immobilière de Djibouti 
(SID) Urban housing 100 per cent .. 
Radio télévision de Djibouti 
(RTD) Audiovisual 100 per cent .. 
.. Not available. 
Source : Decrees No. 99-0077/PR/MFEN of 8 June 1999 and No. 2001-0191/OR/MEFPP of 23 September 2001. 
79. State-owned enterprises and semi-public en terprises are a heavy burden on the domestic 
economy, including on the State's budget.  The majority of these enterprises are not in a position to generate the revenue they need to finance their day- to-day operations.  In 1999, estimates showed an 
overall debt of DF 9 billion for the EDD; an opera ting deficit of DF 160 million for the ONED;  and 
the operating loss of the airport amounted to DF 200  million in 1999, representing a cumulative sum 
of DF 820 million between 1994 and 1999.
58  This poor performance is mainly due to weak 
management, investment that is not very profitable or unprofitable and the State's arrears.  According 
to the authorities, the financial situation of th e EDD and the airport have improved since 2003.  The 
strategy adopted in this respect c onsists of stabilizing their financia l situation before a concession is 
granted rather than opening up their capital. 
                                                      
 58 Decree No. 2001-0191/PR/MEFPP of 23 September 2001. WT/TPR/S/159/Rev.1 Trade Policy Review 
Page 46 
 
 
(iv) Protection of intellectual property rights 
(a) Overview 
80. Djibouti has been a member of the World Intellectual Property Organization (WIPO) since 
May 2002 and the African Intellectual Property Organization (OAPI) since 2001.59  It has not ratified 
the revised Bangui Agreement.  It has acceded to th e Paris Convention for the Protection of Industrial 
Property and the Berne Convention for the Pr otection of Literary and Artistic Works.60  Djibouti is 
considering acceding to the Madrid Protocol. 
81. The ministries responsible for intellectual prope rty-related matters are those in charge of 
industry (industrial property) and culture (copyright). 
(b) Industrial property rights 
82. Djibouti's industrial property legislation dates from the colonial era.61  The law only covers 
trademarks and service marks.  Consequently, other types of industrial property, including patents and 
industrial designs, are not protected. 
83. Since Djibouti became independent, trademarks ha ve been filed with the clerk of the court 
(Ministry of Justice).  Parallel im ports of products protected by trademarks are prohibited in Djibouti. 
84. The WIPO undertook a mission in order to define priorities and a timetable for introducing 
the following:  (i) legislation consiste nt with the relevant international texts;  (ii) a national intellectual 
property office;  and (iii) special training.62  A draft industrial property law is currently being prepared 
with the assistance of the WIPO. 
(c) Copyright and related rights 
85. Law No. 114/AN/96/3èmeL of 3 September 1996 protects the following:  (i) books, brochures 
and other written literary, scientific or artistic works;  (ii) lectures, speeches, sermons, pleadings and 
other similar works;  (iii) works created for the theatre or for broadcasting (sound or visual), whether 
dramatic or dramatico-musical, choreographic or mime works, whose representation is written or 
otherwise determined;  (iv) musical compositions, w ith or without words, whether or not in written 
form;  (v) drawings, paintings, engravings, lithographs ;  (vi) tapestries and objects made using artistic 
methods or the applied arts, whether sketches or mode ls or the work itself;  (vii) architectural works, 
both drawings and models and the building itself;  (viii) sculptures, bas-relie fs and mosaics of all 
sorts;  (ix) photographic works, to which are a ssimilated works made using a process similar to 
photography;  (x) cinematographic works, to wh ich are assimilated works made using a process 
similar to cinematography;  (xi) geographical maps , illustrations, plans, sketches or three-dimensional 
                                                      
 59 Law No. 63/AN/94/3èmeL of 26 November 1994.  The other members of the Bangui Agreement 
(1977) creating the OAPI are:  Benin;   Burkina Faso;  Cameroon;  Central African Republic;  Chad;  Republic 
of Congo;  Côte d'Ivoire;  Equatori al Guinea;  Gabon;  Guinea;  Guinea-Bissau;  Mali;  Mauritania;  Niger;  
Senegal;  and Togo.  The Bangui Ag reement replaced the African and Ma lagasy Industrial Property Office, 
created in 1962 under the Libreville Agreement.  Available at:  
http://www.wipo.int/clea/docs_new/en/o a/oa003fr.html [30 March 2005]. 
 60 Law No. 150/AN/02/4èmeL of 31 January 2002. 
 61 French law of 31 December 1994.  The French Na tional Industrial Property Office (INPI) was also 
responsible for matters relating to trademarks and copyright in Djibouti.  
62 UNIDO (2003). Djibouti WT/TPR/S/159/Rev.1 
 Page 47 
 
 
works relating to geography, topography, architecture or  science;  and (xii) works of national folklore 
and works based on such folklore. 
86. Protection is given to authors and (where a pplicable) co-authors for their lifetime and for 
25 years after the death of the last surviving author or co-author.  In the case of a work published 
anonymously or under a pseudonym, rights are protecte d until the date on which the work is lawfully 
published for the first time.  For cinematographic works, rights are protected until the expiry of a period of 25 years from the date of completion of the work or, if the work has been made accessible to the public with the consent of the author during this period, for 25 years after its communication to the public.  In the case of photographic works or works of applied art, rights are protected for 25 years 
after the work has been completed. 
87.
 The law gives the author, in addition to his econom ic rights, moral, perpetual, inalienable and 
imprescriptible rights to claim the authorship of hi s work and, in general, to oppose any distortion, 
mutilation or other modification of his work, as we ll as any disclosure or reproduction without his 
agreement. 
88. According to Article 75, works whose country of origin is not Djibouti enjoy protection 
pursuant to Djibouti's obligations under the inte rnational conventions to which it is party.63  
Infringement of copyright is subject to penalties in the form of a fine of up to DF 200,000 and, if the offence is repeated
64, of up to DF 400,000 and a term of imprisonment of one to six months. 
89. A Bureau djiboutien du droit d'auteur (Djibouti copyright office) (BBDA), under the Minister 
in charge of culture, was set up in 1996.65  It is responsible for administering rights and for protecting 
the moral and material interests of authors and composers.  Its responsibilities are determined in 
ministerial decrees.  According to Article 67, the BB DA, to the exclusion of any other natural or legal 
person, is entitled to act as inte rmediary between the author or th e persons entitled and the users of 
literary and artistic works for the purpose of issu ing authorizations and collecting the relevant 
royalties.  In Djibouti, the office will administer the interests of various organizations of foreign 
authors under reciprocal representation conventions or agreements. 
(d) New plant varieties 
90. Djibouti does not have any legisl ation on protection of new plant varieties, nor has it ratified 
the Convention establishing the International Un ion for the Protection of New Plant Varieties 
(UPOV).66 
                                                      
 63 The following are considered to be works that have  Djibouti as the country of origin:  works created 
by authors of Djiboutian nationality;  works of legal persons subject to Djiboutian jurisdiction;  works of foreign 
nationals published for the first time in Djibouti;  works whose authors have their customary residence or are living in Djibouti;  works of architecture built on Djiboutian te rritory and any work of art that is an integral part 
of a building situated on Djiboutian territory;  and works of national folklore as State property, as well as works 
in the public domain.  
64 It is considered that the offence is repeated if, w ithin the five years preceding  the offence in question, 
the offender had already been conv icted for an identical offence. 
 65 Chapter IV of Law No. 114/AN/96/3èmeL of 3 September 1996. 
 66 Available at:  http://www.upov.int/en/abou t/members/pdf/pub423.pdf [4 April 2005].