RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/YEM/18 
11 July 2007 
 (07-2959) 
Working Party on the 
Accession of Yemen Original:   English 
 
 
 
ACCESSION OF YEMEN 
 
Additional Questions and Replies  
 
 
 The following submission, dated 27 June 2007, is  being circulated at the request of the 
Delegation of the Republic of Yemen.   
_______________ 
  WT/ACC/YEM/18 
 Page i 
 
 
  TABLE OF CONTENTS 
 
 
II.  ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................2  
- Investment Regime.............................................................................................................. ......3  
- State Ownership and Privatization .........................................................................................7  
- Pricing Policies ............................................................................................................... .........11  
- Competition Policy............................................................................................................. .....12  
IV.   POLICIES AFFECTING TRADE IN GOODS ...................................................................13  
- Trading Rights ................................................................................................................. .......13  
A.  IMPORT REGULATIONS....................................................................................................15  
- Ordinary cust oms duties ........................................................................................................ 15 
- Other duties and charges....................................................................................................... .16 
- Fees and charges for services rendered.................................................................................16  
- Application of internal taxation to imports ..........................................................................19  
- Quantitative import restrictions, includi ng prohibitions, quotas, and licensing 
systems ........................................................................................................................ .............20  
- Customs valuation.............................................................................................................. .....22  
- Rules of origin ................................................................................................................ .........24  
- Other customs formalities ...................................................................................................... 24 
- Anti-dumping, countervailing dut ies and safeguard regimes.............................................25  
B.   EXPORT REGULATIONS ...................................................................................................25  
- Export subsidies ............................................................................................................... .......25  
C.   INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................26  
- Industrial policy, including subsidies....................................................................................26  
- Technical barriers to trade, standards and certification.....................................................27  
- Sanitary and phytosanitary measures...................................................................................29  
- Trade-related investment measures ......................................................................................31  
- State-trading entities......................................................................................................... ......31  
- Free zones, special economic areas........................................................................................32  
V.   TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................33  
- Participation in international intellectual property agreements ........................................33  
- Copyright and related rights..................................................................................................3 3 
- Trademarks, including  services marks .................................................................................35  
- Geographical indications, including appellations of origin.................................................35  WT/ACC/YEM/18 
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  -
 ENFORCEMENT...................................................................................................................3 6 
VII.   TRANSPARENCY .................................................................................................................36  
ANNEX 1 ........................................................................................................................ ......................38  
ANNEX 2 ........................................................................................................................ ......................39   WT/ACC/YEM/18 
 Page 1 
 
 
 II.  ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 Factual Summary, Paragraphs 9-11 and Table 1:  We would appreciate an update on monetary 
and fiscal policies for the period 2001-2005, including statistics on GDP, the money supply, 
revenue, and expenditures.  We would like to see some discussion of the budget deficit (or 
surplus), and the measures the government is taki ng to manage any fiscal imbalance that may 
exist. 
Answer:
 
Yemen is working on developing its monetary po licy and monetary system towards maintaining 
stable exchange rates and low level of price increases. 
Broad Money supply (M2) growth fell from 20 per cent in 2003 to 15 per cent in 2004 and to 
14.4 per cent in 2005.  In 2006, it rose to 28.8 per cent.  Net foreign assets of the banking system had 
an expansionary role on M2 amounting to 38.5 pe r cent in 2006.  But net domestic assets had the 
opposite effect for it made M2 shrink by 9.7 per cent in the same year. 
Confidence in the national currency is strengthe ning as reflected by the gradual reduction in 
dollarization (amount of dollars held by public) from 52.5 per cent in 2001 to 49.5 per cent in 2005 
and to 48.4 per cent in 2006.  The US dollar rose by  less than 2 per cent against the Yemeni Rial 
(YRLS) during 2006. 
Table 1:  Monetary developments (2001-2006)  
(Changes in per cent) 
Years Percentage change unless 
otherwise stated 2001 2002 2003 2004 2005 2006 
Broad money supply  14.4 15.0 20.0 18.0 18.7 28.8 
Money outside banks  11.0 10.8 12.3 12.5 8.0 24.8 
Rial demand deposits  20.8 17.7 17.2 -4.0 39.4 30.5 
Rial quasi-money  5.0 33.5 29.0 44.4 18.7 34.7 
Net forging assets of the banking 
system 13.8 15.0 15.8 28.7 33.7 31.8 
Private sector credit  21.3 33.5 26.3 14.3 25.8 16.7 
Rials  18.8 38.0 14.4 18.5 23.3 12.0 
Foreign currencies  24.4 28.3 43.3 8.8 29.4 22.4 
Private sector credit as % of GDP 6.9 7.2 6.3 5.8 5.7 8.6 
Dollarization (FC deposits as % of 
total deposits) 49.5 46.4 51.2 51.5 52.5 48.4 
Money outside banks as % of GDP 31.5 32.5 33.7 36.0 37.8 30.5 
Money outside banks as % of Rial 
deposits  91 90 104 116 128 85 
Official gross reserves as % of Rial 
M2 173 168 175 178 168 167 
Inflation (%) 19.8 10.0 13.6 4.3 22.4 16.5 WT/ACC/YEM/18 
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 Years Percentage change unless 
otherwise stated 2001 2002 2003 2004 2005 2006 
Deposit interest rate 13.0 13.0 13.0 13.0 13.0 13.0 
Minimum lending rate  15.0 15.0 15.0 15.0 15.0 15.0 
Maximum lending rate  20.0 20.0 20.0 20.0 20.0 20.0 
Fiscal balance as % of GDP (cash 
basis)* -1.8 -2.2 -4.6 1.1 2.0 0.8 
Source:  Yemen Statistical Annual Book 2005. 
*Source:  IMF 
As for the fiscal policy, Yemen is working on reduc ing the budget deficit.  The period of 2001-2005 
witnessed a deficit in the budget except for 2001 wh ere there was a surplus, as indicated in the 
following table (Table 2).  
The Government endeavours to minimize the defi cit by reducing the current expenditure and 
continuing the financial and ad ministrative reform program. 
Table 2:  Budget Survey for 2001-2005  
(in million Rials) 
Item 2001 2002 2003 2004 2005* 
Total Revenues (Including aid and 
grants) 553,084 567,672 672,293 820,564 1,121,288 
Total Revenues (Excluding aid and 
grants) 546,763 559,971 663,958 801,883 1,107,989 
Total Expenditures and (net-loans) 506,761 576,792 762,766 875,623 1,158,907 
Deficit/Surplus (overall) 46,323 -9,120 -90,473 -55,059 50,918 
Deficit/Surplus (net) 39,712 -1 4,285 -88,818 -51,396 -37,859 
*Estimate  
Source: Yemen Statistical  Annual Book 2005. 
As for GDP, it increased from YRLS 253 billion in 2 001 to YRLS 295 billion in 2005 with a growth 
rate of 3.9 per cent (2001) and 4.4 pe r cent (2005).  Most of GDP growth is attributed to the increase 
in the growth rates of non-oil sectors as explained in the table below (Table 3). 
Table 3:  GDP at Producers Prices by Economic Activity for 2000 - 2005  
(at Constant Prices (1990=100) and in Million YRLS) and  
GDP Growth Rate at Constant Prices (per cent)  
Item 2001 2002 2003 2004 2005 
GDP at Market Prices 252,835 283,032 272,624 262,798 295,469 
 Growth Rate 3.86% 3.82% 3.74% 3.94% 4.39% 
Non-Oil GDP 212,142 244,974 232,565 221,881 257,711 
 Growth Rate 4.54% 5.34% 4.82% 4.59% 5.20% 
Oil Refining 879 910 905 892 937 
 Growth Rate 2.33% 0.55% 1.46% 1.48% 2.97% 
Yemen Statistical Annual Book 2005. 
- Foreign Exchange and Payments 
Question 2 Factual Summary, Paragraph 15:  We would appreciate an update on Yemen's foreign 
exchange and payments section for the period 2001-2005, including statistics.  WT/ACC/YEM/18 
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 Answer:  
The current account surplus increased notably from YRLS 41.5 billion in 2004 to YRLS 122.5 billion 
in 2005 mainly due to the high increase of intern ational oil prices. The capital account has shown a 
deficit of YRLS 48 billion but this was offset by the big surplus of the current account.  
The overall balance of payments position achie ved a surplus of YRLS 113.7 billion. Imports 
increased by 22 per cent in 2005 compared to only 8 per cent in 2004.  For more information on 
imports and exports, please refer to the Foreign Tr ade Statistics (which will shortly be available 
through document WT/ACC/YEM/18/Add.2). 
The following table shows the development of balance of payment during the period 2001-2005. 
Table 4:  Balance of Payments 2001-2005  
In Million Yemeni Rials 
Years Items 2001 2002 2003 2004 2005* 
I -Current account 112,028.2 77,870.7 32,172 .0 41,541.0 122,511.3 
 1- Trade Balance 128,140.7 105,584.2 67,254.1 151,115.1 326,987.6 
 2- Services balance -114,425.0 -119,495.1 -99,798.7 -127,443.5 -164,487.5 
 3- Income balance -116,514.7 -143,702.2 -188,362.2 -248,867.2 -309,135.4 
 4- Current transfers balance 214,827.2 235,483.8 253,078.8 266,736.6 269,146.6 
II. Capital and financial account 16,949.8 -2,627.8 25,739.1 47,212.4 -47,801.9 
  1- Financial account balance 16,949.8 -2,627.8 25,739.1 47,212.4 -47,801.9 
 1.1- Direct investment 23,279.6 17,854.4 1,076.5 26,599.4 -57,372.8 
 1.2- Other investment -6,329.8 -20,482.2 24,662.5 20,612.9 9,570.9 
III- Errors and Omissions -18,717.5 30,315.4 3,513.7 9,651.6 38,987.7 
Overall balance 110,260.5 105,558.4 61,424.9 98,405.0 113,697.0 
Financing -110,260.5 -105,558.4 -61,424.9 -98,405.0 -113,697.0 
A-Net Reserves(increase= -) -118,710.4 -105,558.9 -65,231.3 -114,325.1 -148,622.2 
B- Debt Relief and arrears 8,449.8 0.5 3,806.4 15,920.2 34,925.2 
* Estimate  
Yemen Statistical Annual Book 2005 
- Investment Regime 
Question 3 Does Yemen's law allow a foreign investor to purchase an existing firm from its Yemeni 
owner(s)? 
Answer:
 
Yes, Yemen's law allows a foreign investor to pur chase an existing firm in the areas where foreign 
investment is allowed.  
Question 4 
Does Yemen have a stock market? 
Answer:  
Currently, Yemen does not have a stock market.     WT/ACC/YEM/18 
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 Question 5 
Document WT/ACC/YEM/10:  The response to Quest ion 19 states the following:  "The investor 
submits an application of the requested exempt ions and all proofs of the project's eligibility 
according to the law within 90 days from the beginning of the production or practicing 
activities."  
Please identify the documents that would serv e as "proofs of the projects eligibility." 
Answer:
 
Documents of Project eligibility comprise:  - Project registration certificate; 
- Proof of commercial registration of the project; and 
- Proof of production commencement in the project.  
Question 6 
Document WT/ACC/YEM/10, Question 19:  What happens if the General Investment Authority 
does not issue the tax exemption certificate within 60 days? 
Answer:
 
In the unlikely case of a delay in issuing the tax exemption certificate, the investment will not be 
effected negatively and without any prejudice to the investor.  
Question 7 
Factual Summary, Paragraph 24:  Does Yemen inte nd to become a party to the Convention on 
the Recognition and Enforcement of Foreign Arbitral Awards?   
Answer:  
Yemen has not considered joining the Convention on the Recognition and Enforcement of Foreign 
Arbitral Awards yet.  
Question 8 
We note that foreign equity is limited to 45 per cent for commercial banks, to 49 per cent for 
retail and wholesale activities and to 25 per cent for insurance companies.  Is Yemen foreseeing 
any timetable for allowing 100 per ce nt foreign equity in these sectors?  
Answer:  
Yemen does not have a foreseen timetable for allowi ng 100 per cent foreign equity in such sectors.  
Question 9 
Could Yemen submit the 2002 Mines and Quarries Law No. 24 to the Working Party?  WT/ACC/YEM/18 
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 Answer:  
The 2002 Mines and Quarries Law No. 24 can be obtained through document 
WT/ACC/YEM/18/Add.1.  
Question 10 
Paragraph 21 and Question 23 of document WT /ACC/YEM/10:  We would be happy if Yemen 
could explain what is the difference in investment  incentives granted on the basis of percentage 
of shares held by Yemeni nationals in joint stock companies (how does this operate, what 
percentage of Yemeni ownership is required a nd what incentives are received compared with 
low Yemeni ownership)? 
Answer:  
The Yemeni investment law accords investment project s of which at least 25 per cent of the equity is 
owned by Yemenis, an extra two-year tax exemp tion.  In order to benefit from such incentives, 
projects have to present proof of the local shareholding.   
Question 11 
Question 24 of document WT/ACC/YEM/10:  Yemen explains that there is no exclusive list of 
sectors/products prohibited under the Shari'a.  We  would urge Yemen to be a bit more specific 
on this point, since "everything that contradicts public morals and Islamic values" is a very wide criteria, which may lead to arbitrary discrimination.
 
Answer:  
It is impractical to provide an exclusive list of sectors/products prohibited under Sharia'a.  A revised 
list of prohibited goods is being submitted to the Worki ng Party (please see document 
WT/ACC/YEM/17/Rev.1).  Yemen confir ms that the measures to be taken in accordance with Shari'a 
principles are going to be implemented in a non-discriminatory manner.  
Question 12 
Question 25 of document WT/ACC/YEM/10:  Yemen explains that there is no exclusive list of 
industries considered to harm the environment or  health.  We would urge Yemen to be a bit 
more specific on this point, as investors would need to have a minimum legal certainty on this 
matter. 
Answer:  
Currently, a list of industries harmful to the environm ent is being prepared and will be available to the 
public upon completion. 
Question 13 
Paragraph 17 of the Factual Summary:  In Yeme n's view are measures for "Production Sharing 
Agreements" or "Special Agreements" consiste nt with the provisions of the WTO Agreement 
on Trade-Related Investment Measures?  WT/ACC/YEM/18 
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 Answer:
 
Measures for "production sharing agreements" or "sp ecial agreements" are not in contradiction with 
the provisions of the TRIMs Agreement, as they do not fall under any of the TRIMs provisions.  
Question 14 
Paragraph 18 of the Factual Summary:  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 ot her than judicial order", could Yemen please 
specify if foreign investors would be entitled to  the same compensation as offered to domestic 
investors in issues concerning i ndirect or direct expropriation? 
Answer:  
According to Article 5 of Law No. 22/2002, fore ign capital shall be on par with Yemeni capital 
without discrimination with respect to commitments, ri ghts, rules, procedures set forth in this law and 
the decrees and regulations enacted in the execution thereof.  Accord ingly, foreign investors will be 
entitled to the same compensation with respect to direct or indirect expropriation.  
Question 15 
Paragraph 18 of the Factual  Summary:  Yemeni Investment Law contains language relating to 
"the freedom of investors to manage their projec ts", could Yemen please outline it's regulations 
on the entry of personnel 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 
the requirements stated in their list of requirement s and are entitled to obtain work permits for their 
personnel for a three-year period renewable upon a recommendation by the authority".  
Question 16 
Paragraph 19 of the Factual Summary:  Acco rding to the Secretariat's Report, "Tax 
exemptions were accorded to investment projects for a period of 7 to 16 years, depending on the 
location of the investment project, the local co mponent 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 additional two years of tax exemption if the local component of 
their fixed assets is not less than 25 per cent of the total fixed assets of the project.  According to the 
investment law, fixed assets mean "the machinery, instruments, equipment, supplies, and spare parts 
needed to establish, expand or rehabilitate a project  including buses especially designed to transport 
tourists, vessels for maritime transport and fishing a nd furniture and furnishing  for hotels and hospital 
whether imported or locally manufactured or produced ".  Yemen is convinced that this measure does 
not fall under the TRIMs Agreement.  However in case of any other interpretation, Yemen avails 
itself of the transitional arrangements provided fo r LDCs in the said agreement as well as the Hong 
Kong Ministerial Declaration.   WT/ACC/YEM/18 
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 Question 17 
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:  
A list of international and bilateral invest ment treaties can be found in Annex 1. 
- State Ownership and Privatization Question 18 Factual Summary, Paragraph 26:  Please identify the owner(s) of the holding company, Yemen 
General Corporation of Oil and Gas. 
Answer:
 
The owner of the Yemen General Corporation of O il and Gas is the Ministry of Oil and Natural 
Resources.  
Question 19 
Factual Summary, Paragraph 26:  What commercial entities have the right to import oil, gas, 
petrochemical, and refined petroleum products? 
Answer:  
Importation of oil, gas and refined petroleum oil is  confined to the General Corporation of Oil and 
Gas, while the importation of petrochemicals is handled by the private sector.  
Question 20 
Factual Summary, Paragraph 27; Table 3, page 51:  Please describe corporate governance 
requirements for the commercial entities listed in Table 3.  Please describe the kinds of 
commercial decisions that corporate governance ru les require the board of directors to make.  
How do Boards of Directors of state owned en terprises make decisions?  Are written minutes 
kept of board meetings?  Are they available to shareholders?  Are they available to the public? 
Do State-Owned Enterprises issue an annual report to the public?  Please list in Table 3 the Board Chairmen for each State-owned or controlled enterprise.   
Answer:
 
The Boards of Directors of government commercial entities listed in Table 3 are responsible for the 
following:  
- Setting the necessary policy for conducting the work and endorsing the administrative and 
financial regulations in line with the need ed requirements, available resources, and the 
enforced provisions of law; 
- Setting the policy and the objectives of the ins titution, approving the investment plans and 
different activities in such a way that achieves its purpose and monitoring provisions in light of the general policy of the country; WT/ACC/YEM/18 
Page 8  
 
 - Deciding on contracts of the entity with others  in the area of investment, loans and credit 
facilitation; 
- Approving studies, reporting recommendations a nd proposing the special draft decisions of 
the issues that require decisions from the Minister or the Prime Minister; 
- Approving the annual financial plan of the entity and working to achieve the resource 
estimates and spending in the planned budget in such a way that guarantees the growth of 
resources and decrease of spending; 
- Setting the financial policy of the entity to arrange for the development of resources to 
finance current and investment operati ons from local and foreign currency; 
- Ratifying the regulation of the entity and pr esenting it to the Minister for approval and 
issuance; 
- Approving the general budget of the entity, fiscal accounts and the results of the annual 
inventory of the entity; 
- Proposing the amendment of the capital of the entity; and 
- Appointing branch managers of the entity based  on the proposal of the general manager and 
the approval of the Minister in such a way that  does not contravene with enforceable laws and 
regulations. 
Decisions in those entities are made by voting in which majority is the prevailing mechanism for 
decision making. Minutes of meetings and annual re ports are made available to the shareholders.  
The following table (Table 5) lists names of chai rmen of boards of directors for state-owned or 
controlled establishments referred to in Table 3 of JOB(05)/172/Rev.1. 
Table 5:  List of Chairmen of Boards of Di rectors for State-Owned or Control Establishments
 
Company Chairman of th e Board of Directors 
 Public Telecommunication Corporation   Kamal Aljabri  
 Public Corporation for Water and Sanitation  Ibrahim Al Mahdi 
 Public Corporation for Elect ricity Dr. Mustafa Bahran  
 Public Corporation for Cement Manufacturing and Marketing Amin Al Shaibani 
 Public Corporation for Clothi ng and Textile  Mohamed Hajeb 
 Yemeni Company for Insurance an d Reinsurance Ahmed Ali Haddash 
TeleYemen Kamal Aljabri   
 Marib Poultry Company  Dr. Hassn Alfwsail  
 Yemen Airways Abdul Khaliq Al Qadi 
 Yemeni Bank for Construction and Development Abdullah Salem Al Jefri  
Yemeni-Libyan Holding Company Abdullah Mohammed Esshaq 
 Kuwaiti Yemeni Real Estate Development Company Khalid Al Obaidi, 
 National Tobacco and Matches Company Tawfeeq Al Ahmer  
 Saba'a Insurance Company Mohamed Mustafa 
 Marib Insurance Company Ali Hashim  
 Arab Insurance Company Adel Albanna 
 
Question 21 
Factual Summary, paragraphs 26 and 27:  Do es Yemeni law subject state-owned and state-
controlled enterprises to international account ing standards?  Does Yemeni law require an 
independent audit of State-owned and state-controlled enterprises' accounts?   WT/ACC/YEM/18 
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 Answer:  
Yes, state-owned and state-controlled enterprises ar e subject to international accounting standards. 
Moreover, Yemeni law requires an independent aud it of state-owned and state-controlled enterprises 
accounts.  
Question 22 
Document WT/ACC/YEM/10, Question 13:  Please provide further details on the tendering 
procedures followed by state-owned and state-co ntrolled enterprises.  We note that paragraph 
125 of the Factual Summary states that "as a gen eral rule, wholly State- owned enterprises also 
used public tendering to purchase goods and services."  Are the purchases of state-owned and state-controlled enterprises subject to Law No. 3/1997 "On Government Bids, Tenders and 
Warehouses?"  Is there a specific value above which state-owned and state-controlled enterprise 
must follow tendering procedures?  How do State-Owned and State-Controlled Enterprises 
make purchases for operat ional purposes (office supplies, for instance)?   
Answer:
 
In principle, government bodies both at the central an d local level are subject to the provisions of Law 
No. 3/1997 which did not exclude from the enforcement of its provisions any but units of the public 
sector with productive nature and units of the mixe d sector as the law allowed for these two types of 
establishment, for considerations required by the comm ercial nature of their activities, to have certain 
procedures according to their laws.  As for the pro cedural part of tendering, the law has provided for 
technical and administrative committees to be fo rmed for this purpose in bodies controlled by its 
provisions; whether the issue concerns the prepar atory procedures of the tender like specifications, 
terms for tendering, list of items, samples and documents needed therefore, or the tender 
post-announcement procedures in terms of receiving, tabulating, analyzing and deciding on the offers 
from the participants.  Only in th is regards, the law obliged all the bodies subject to its provisions to 
fairly and equally treat all competitors and, at the same time, it guarantees the 
bidders/contractors/suppliers the right to appeal to  the chairman of the body when mistreated or 
harmed or to resort to court.  
With regards to biddings related to the purchases  for operational purposes (such as office equipment), 
the executive regulation of Law No. 3/1997 stipulates the following: 
- Less than YRLS 30,000 by direct order; 
- More than YRLS 30,000 up to YRLS 200,000 by direct tendering involving at least two 
bidders; 
- More than YRLS 200,000 up to YRLS 1 million by limited tendering, i.e. the competing 
bidders enlisted should not be less than three; and 
- More than YRLS 1 million by public tendering in which competition is open to all qualified 
bidders through announcements by means of appropriate media.   
Question 23 
Document WT/ACC/YEM/10, Question 14:  Are state-owned and state-controlled enterprises 
subject to the provisions governing bankruptcy in Articles 570-823 of Commercial Law No. 32 of 1991? WT/ACC/YEM/18 
Page 10  
 
 Answer:
 
Yes state-owned and state controlled enterprises are s ubject to the provisions governing bankruptcy in 
Articles 570-823 of the Commercial Law No. 32 of 1991.   
Question 24 
Factual Summary, paragraph 28:  Are any of the firms listed in Table 4 bankrupt as defined in 
Articles 570-823 of Commercial Law No. 32 of 1991? 
Answer:  
There are no bankrupt companies among the companies listed in table 4.  
Question 25 
Factual Summary, paragraph 30:  Please explain wh at is meant by the following sentence:  "All 
privatizations involving a transfer of ownership were subject to the Council of Ministers' 
approval."   
Answer:  
The intended meaning of the sentence is that all priv atizations involving partial or full transfer of 
ownership are subject to approval of the Cabinet.  
Question 26 Factual Summary, paragraph 32:  In the following  sentence, "The representative of Yemen said 
that the TPO published announcements on privatization in widely-circulated newspapers to ensure transparency in the privatization pro cess," what newspapers does Yemen consider to be 
"widely-circulated?"  Does Yemen use other media to publicize its tenders?  If so, what are they? 
Answer:
 
The newspapers considered to be widely ci rculated are "Althowrah" newspaper and "14th of October" 
newspaper which are published daily.   The privatization law also allows the publication process to 
include all mass media including the Internet.  
Question 27 
Paragraph 26 of the Factual Summary and Quest ion 5 of document WT/ACC/YEM/10:  On the 
basis of the information given on the Holdin g Company "The Yemen General Company for Oil 
and Gas, we consider this company as a State Trading Enterprise in the meaning of Article XVII GATT.  We would request Yemen to notify this company to WTO in accordance to 
Article XVII GATT upon accession. 
Answer:
 
Yemen will notify the Yemen General Corporation fo r Oil and Gas as a state trading enterprise upon 
accession.  WT/ACC/YEM/18 
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 Question 28 
Paragraph 26 of the Factual Summary and Question 15 of document WT/ACC/YEM/10:  
Yemen explains that monopolies exist in the areas of fixed telecommunications and 
international telecommunication services, water and sewage services and electricity production 
and distribution.  Has Yemen any plans to ab olish the current monopolies in the future and 
allow other companies to enter in these sectors? 
Answer:  
Yemen does not have any plans for breaking the cu rrent monopolies above mentioned. Nevertheless, 
in order to ensure universal access to essential services, Yemen is gradually allowing private sector participation in some areas of these sectors. 
Question 29 Is the Public Corporation of Electricity also importing and/or exporting electricity?  
Answer:
 
The Public Corporation of Electricity does not import or export electricity.  
- Pricing Policies 
Question 30 
WT/ACC/YEM/10, Question 3:  Under what le gal authority do "…some Government agencies 
determine the prices of some goods and services which they provide …?"  How do government 
agencies determine which prices to control?  Wh at criteria do they use to set the prices? 
Answer:  
The legal authority, under which the prices of some goods and services produced/provided by 
government agencies are determined, is the decree that established each resp ective agency including 
their rights to set the prices of goods/services they produce/provide.  Price control is applied to public 
goods and essential services produced/provided by t hose entities such as electricity, water, sewage.  
The criteria used to set such prices are based on co sts and market factors taking in consideration the 
social factors and affordability to consumers.   
Question 31 Paragraph 34 of the Factual Summary:  Could Yemen give information as regards the annual 
production of petroleum products, and how much of this is sold to domestic market and how 
much exported? 
Answer:
 
The production of oil is as follows:  
Table 6:  Production of oil in million barrels  
2002 2003 2004 2005 2006 
159.92 157.27 147.5 146.09 133.33 
 WT/ACC/YEM/18 
Page 12  
 
 As shown in the table above, the production of oil is declining.  
With regards to the local consumption of petr oleum products, it was 4,996,737 tons in 2006.  
The exports of oil in 2006 amounted to 63,599,248 barrels.   
Question 32 
What are the export prices of petroleum products?  
Answer:
 
The average price of crude oil exports in 2006 amounted to US$62.933/ barrel.  
- Competition Policy 
Question 33 Factual Summary, paragraph 35; WT/ACC/YEM/10, Question 33:  While we appreciate that 
Yemen has a new draft law on monopoly and an ti-competitive behaviour before the National 
Assembly, we reiterate our request for a descript ion of the elements of Law No. 19/1999 that 
provide authority for the government to intervene against monopoly or anti-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. 
In the interest of transparency, we would app reciate the opportunity to review Yemen's draft 
law on monopoly and anti-competitive behaviou r.  When does Yemen anticipate enacting the 
new law? 
Answer:
 
The main elements mentioned in Law No. 19/1999 is the provision indicating that dealing in different 
goods and services in the Yemeni market should be conducted within the framework of free trade and 
in such a way that does not cause any injuries to the interests of the users or create any commercial 
monopolies.  
The government authority is represented in the inte rference against monopoly and any unfair practices 
through: 
- The prohibition to establish contracts and agreem ents or cartels that aim at monopolizing the 
importation, production, distribution or sales of  any goods or any parts thereof with the 
intention to hide them, restrict their circulati on, limit their production or decide on their prices 
in such a way that prevents free competition; 
- The prohibition to establish competing natura l and legal commercial bodies via signing any 
agreements or setting any arrangements among themselves which would prevent or weaken 
competition; and 
- The prevention of commercial enterprises from committing any acts whose purpose is to 
constrain the entry of new competing enterprises  to the market, to hinder the expansion of 
existing enterprises, or to expel competing ones from the market.  WT/ACC/YEM/18 
 Page 13 
 
 
 The prevention of the economic concentration when ever it leads or may lead to restricting or 
weakening competition. However, the Law excl uded the following activities from the scope of 
implementation of its provisions: 
- Activities of the commercial enterprises which have link with the government (valid 
concession agreements), the activities of the st ate-monopolized enterprises, enterprises having 
licenses and concessions issued by the original producer to produce foreign products, and the 
activities of the commercial agencies; 
- The provisional measures taken by the Ca binet to address exceptional emergency or 
force majeure  cases in a certain sector; and 
- The rights endorsed by protection of IPRs, trademarks, patents, and copy rights. 
As concerning the part of question on procedures, through which individuals and companies can raise 
complaints to the government on uncompetitive practi ces and the way of judging them, it can be said 
that Law No. 19 stated the establishment of a special government authority, anti-monopoly and 
competition protection authority, whose objectives include most importantly revealing of monopoly 
cases, vertical integration, and horizontal concentra tion; hiding any product or material needed for the 
production of a product in the domestic market during its  sales, display or pricing in any way that may 
lead to the restriction of free competition.  The la w authorized the mentioned authority to, in this 
regard, set the necessary policies and procedures needed for the protection and enhancement of 
competition. 
In light of the abovementioned, the reported co mplaints on uncompetitive practices are one of the 
responsibilities and tasks of the mentioned authority which, after receiving the complaint, investigates 
the case and collect the supporting information includi ng field visits to the commercial enterprises in 
question or request the relevant data and informati on.  The authority after establishing the case, refers 
the complaint and its relevant doc uments through the Ministry of Industry and Trade to the concerned 
judicial bodies, i.e. general prosecutor, to investig ate the case and file a claim against the violating 
enterprises in front of a competent court of law whic h in turn look into the case and take a decision 
according to the law. 
As for the last part of the question on the draft alternative law for Law No . 19/1999 and the possibility 
to review by the Working Party and the expected i ssuance time, it can be said that the mentioned draft 
is currently under revision and once revision is comple te and the draft is in its final version, we will 
provide a copy.  As for its issuance time, we expect it to take place according to the legislative action 
plan during 2008. 
IV.   POLICIES AFFECTING TRADE IN GOODS - Trading Rights Question 34 Factual Summary, Paragraph 45:  Does Yemen require a trading company to register as a 
commercial enterprise, register as an importer, a nd register as an exporter?  Must it register in 
fact three times? 
Answer:
 
Yemen does not require a trading company to regist er three times as a commercial enterprise, as an 
importer and as an exporter.  It is only register ed once to practice all tr ade activities it may wish 
according to the purposes of the company stated in  the memorandum of association and articles of 
association. WT/ACC/YEM/18 
Page 14  
 
 Question 35 
Factual Summary, Paragraphs 45 and 49:  We a ppreciate Yemen's review of its fee structure 
for commercial registration.  We look forward to Yemen's equalization of the fees it charges 
foreign and Yemeni applicants for commercial registration. 
Answer:
 
Yemen is currently reviewing the commercial regist ration fees to ensure their consistency with the 
WTO requirements, upon accession. 
Question 36 
Factual Summary, Paragraph 48:  We note that the registration fees for imports and exports for 
companies do not seem to reflect the costs of serv ices rendered. In addition we note that the fee 
is the highest for the agency and branches of a fo reign company, even of the conditions for the 
application are the same.  We therefore urge welcome Yemen's commitment to review the fees 
to bring them in compliance with Article III an d VIII GATT, to reflect the cost of services 
rendered and not to discriminate on the basis of nationality of the company in question. 
Answer:  
Please refer to the answer of Question 35. 
Question 37 
Factual Summary, Paragraph 46:  Please advise whether a firm must obtain a ministerial 
decision to register as a commercial enterprise a nd to import.  Please expl ain the reasoning for a 
ministerial decision to register ev ery commercial firm in Yemen.  Is it in fact true that every 
business operating in Yemen has been registered  and its registration was approved by the 
minister?  Does Yemen have any intention to streamline its commercial registration procedures 
to make them less burdensome to importers a nd investors?  Does renewal of registration 
require ministerial approval also? 
Answer:  
The establishment of a joint-stock company needs a decree issued by the Prime Minister.  After 
underwriting is completed, a ministerial decree w ill be issued to allow the company to commence 
practicing its activities.  
The limited liability company and closed-stock compan y need to obtain a ministerial decree after the 
signing of the memorandum of association, articles of association, the depositing certificate of the company's capital in one of the commercial banks  and registering the company in the commercial 
companies' register, according to Articles 66 and 245 of Companies Law No. 22 of 1997 and its 
amendments.  
The joint liability company and limited partnership company do not need a ministerial decree for 
commercial registration. 
After issuing the establishment decision, renewal of  registration does not need a ministerial approval 
but is automatically done.    WT/ACC/YEM/18 
 Page 15 
 
 
 Question 38 
Factual Summary, Paragraph 49:  Article XI of the GATT 1994 conveys upon natural and legal 
person of any WTO Member the right to trade with any natural and legal person of any other WTO Member.  Article III of the GATT 1994 ensures that rights accorded domestic firms are 
extended equally to foreign firms.  Yemen' s current practice of limiting importation and 
exportation rights to Yemeni natural and legal  persons explicitly discriminates against natural 
and legal persons of other WTO Members.  This limits competition in trade in goods, 
establishing a de facto quantitative restriction on trade.  Yemen's current practice is therefore 
inconsistent with Articles III and XI of the GATT and must be amended.  
Answer:
 
Yemen continues to believe that the current tradi ng regime does not contradict Articles III and XI of 
GATT 1994. It does not represent any quantitative or other trading restrictions. 
Question 39 
We seek a commitment from Yemen that, from the date of accession, it will grant to any natural 
or legal person, domestic or foreign, the righ t to be the importer of record of any product 
allowed to be imported into Yemen.  In addi tion, we will seek a commitment from Yemen to 
confirm that from the date of accession, full rights to trade would be granted in a non-discriminatory and non-discretionary way, and that any requirements for obtaining trading 
rights would be for customs and fiscal purposes  only and would not constitute a barrier to 
trade. 
Answer:
 
Please refer to the answer of Question 38. 
Question 40 
Paragraph 47 of the Factual Summary:  We note  that neither foreign nationals nor foreign 
companies can register as importer or exporter.  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 equalize 
the treatment of foreign and domestic national s and companies as regards the rights to be 
registered as an importer and/or exporter. 
Answer:  
Please refer to the answer of Question 38. 
A.  IMPORT REGULATIONS 
- Ordinary customs duties 
Question 41 
Paragraph 51 of the Factual Summary:  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 duty on the imports of  goods competing with local production that 
rely on local material on its production. As mentioned in our previous comments, this 
requirement is WTO incompatible and we urge Yemen to abolish it from its legislation.  WT/ACC/YEM/18 
Page 16  
 
 Answer:
 
Yemen will abide by WTO agreements  and its accession commitments.   
- Other duties and charges 
Question 42 Factual Summary, Paragraph 53:  Are domestic  goods charged the same fees to support the 
"Heritage and Cultural Development Fund," the "Illiteracy Eradication and Adult Learning 
Agency," and "to finance economic and social plan s and projects" when they arrive at market?  
What services are being provided to the importer for the payment of these fees? 
Answer:
 
Charges referred to in funds me ntioned in Questions 42 and 43 do not represent fees for services 
rendered.  They are charged to serve the developmen t, financial, and social needs of Yemen being a 
least developed country. Most are charge d on imported and domestic products.    
Question 43 
Factual Summary, Table 6:  Yemen charges YRLS 100 for each customs declaration form.  The 
proceeds are provided to the Handicapped Care a nd Rehabilitation Fund.  For what service is 
the importer paying this fee?  Are domestic firms charged fees subsequently provided to the 
Handicapped Care and Rehabilitation Fund? 
Answer:  
Please refer to the answer of Question 42. 
Question 44 
We urge Yemen to bind its other duties and charges within the meaning of Article II:1(b) at 
zero upon accession. 
Answer:  
Binding other duties and charges within the meaning of  Article II.1(b) shall be dealt with in parallel 
with the negotiation of goods market access, taking into consideration Yemen's trade, financial, and 
development needs. 
- Fees and charges for services rendered Question 45 Factual Summary, Table 7; WT/ACC/YEM/11:  We  appreciate this information.  When does 
Yemen intend to provide the Secretariat with defi nitive list of its Fees and Charges for Services 
Rendered? 
Answer:
 
Please see document WT/ACC/YEM/11/Rev.1.  WT/ACC/YEM/18 
 Page 17 
 
 
 Question 46 
Factual Summary, Table 7:  For imports of "feedstuff inputs for animal health," Yemen 
charges a fee of 1 per cent ad valorem  fee for quarantine services for drugs, vaccines, antiseptics, 
etc. used in animal feedstock.  How do these fees relate to the cost of the quarantine services 
being provided?  
Answer:  
This fee is to cover the analysis  of applications, inspection and ex amination procedures at ports, and 
the issuance of permits and relevant documents.  
Question 47 
Factual Summary, Table 7:  Plea se explain how the 1 per cent ad valorem  fee assessed on 
imports of dog and cat food for quarantine servi ces relates to the cost of the service rendered? 
Answer:  
Please refer to the answer of Question 46.  
Question 48 
Factual Summary, Table 7:  Please explain how the ad valorem  fees for issuance of import 
licenses on plant consignments, explosives and fireworks, pesticides, and drugs and medical 
appliances relate to the costs of processing the import licence. 
Answer:  
Currently, fees for issuance of import permits are under revision, in order to reflect the approximate 
cost of services rendered. 
However, the imposed fee for processing an impor t licence for a plant consignment is YRLS 2,000 
not 0.002 as mentioned in Table 7 of the Factual Su mmary and as mentioned in Item 2 of Services 
Fees and Charges for imports in the document WT/ACC/YEM/11.      
Question 49 
Factual Summary, Table 7:  With respect to the fee charged to issue assessment certificates for 
"goods subject to accredited standards," how do es the cost of issuing such a certificate vary 
between US$50 and US$1,000 based on the value of the shipment? 
Answer:  
As for the difference of fees, this is due to the fact that issuing the assessment certificates requires 
examination, inspection, and conformity check whic h may differ from one shipment to another due to 
a number of factors including the nature and size of the consignment.   
Question 50 
Factual Summary, Table 7:  To receive an impo rt licence for publications and stationery or 
audio tapes and CDs, Yemen charges approximate ly US$25.  To receive an import licence for WT/ACC/YEM/18 
Page 18  
 
 cinema films and video films and cassettes, Yeme n charges a fee of approximately US$50.  What 
is the difference in the cost to process an  import licence between the two categories? 
Answer:
 
Please refer to the answer of Question 48.  Howe ver, charging reduced fees for import licenses for 
books and printed materials is to serve pub lic policy objectives, e.g. education.  
Question 51 Factual Summary, Paragraphs 61 and 62:  The fees identified above do not appear to have any 
relation to the cost of service being provided.  How does Yemen intend to adjust its fee structure 
to into conformity with Article VIII of the GATT?   
Answer:
 
Fees for services rendered are under revision. 
Question 52 
We will seek a commitment that Yemen adjust s the fees it charges imported goods to 
approximate the cost of services rendered by accession. 
Answer:  
Yemen is in the process of revi sing import permit fees and othe r fees and charges for services 
rendered so as to bring them to the approximate cost to ensure, from the date of accession, their 
conformity with the WTO agreements, in par ticular Article VIII of the GATT 1994.     
Question 53 
Paragraph 60 of the Factual Summary and Table 7:  We thank Yemen for submitting 
information on its fees and charges. However, we note that many of these fees are either 
ad valorem  or charged per/ton or in a similar manner th at does not reflect the cost of services 
provided. We would therefore urge Yemen to rev ise its fees and charges to bring them in 
compliance with Article VIII GATT.   
Answer:  
Please refer to the answer of Question 52. Question 54 Paragraph 61:  It is noted that Article 25 of th e 2002 Investment law indicates that the fees and 
duty charged on imported goods that are comparable to locally-produced 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:
 
Yemen confirms that fees and charges on importe d goods will not be higher than those imposed on 
locally produced goods, upon accession.   WT/ACC/YEM/18 
 Page 19 
 
 
 Question 55 
Paragraph 93 and Table 13:  We thank Yemen for submitting list of charges and fees applicable 
to exports (Table 13).  We note that many of the fees are given as ad valorem , or per/amount, 
which indicates that they do not correspond to  services rendered.  We would urge Yemen to 
bring all its fees and charges in compliance with the WTO rules and Article VIII GATT. 
Answer:  
Please refer to the answer of Question 52. 
- Application of internal taxation to imports 
Question 56 Paragraph 63 and Table 8:  We thank Yemen for the information provided on taxation of 
imported and domestic products.  However, we note  that in the Table 8 it is indicated that only 
certain imported goods are taxed by 25 per cent (Item IV of Table 8).  
We would therefore urge Yemen to revise its intern al taxation system to bring it in line with 
Articles I and III of GATT. 
Answer:
 
Yemen would like to point out that Law No. 19 of 2001 and its amendments on General Sales Tax has 
replaced law No. 70 of 1991 on Production, Consumpti on and Services Tax, its amendments and all 
annexed tables which are included the tables 7 and 8 in the Factual Summary.  
According to Law No. 19 of 2001 on General Sa les Tax and its amendments, domestic and imported 
goods are taxed equally. 
Goods and services (domestic and imported) are subject to a unified rate in line with Articles I and III 
of GATT 1994 which is 5 per cent as a genera l sales tax according to Article (4, A). 
Benzene, solar, kerosene, mazot, and potan are s ubject to a 5 per cent as a general sales tax from the 
consumer price according to Article (4, B). 
The following products are exempted from the genera l sales tax (wheat, wheat flour, rice, medicines, 
pure gold, personal luggage for passengers coming from abroad, circulated money bills and coins) 
according to Article (40). 
The law includes annexed tables as follows: - Table I regarding exempted services from general sales tax; 
- Table II regarding goods and services subject  to general sales tax by 0 per cent; and 
- Table III regarding goods and services subject  to tax by specific rates for each.   
Question 57 
Paragraph 64 of the Factual Summary:  We woul d be interested to receive the copy of the Law 
No. 19/2001 on the General Sales Tax, as amende d by Law No. 42/2005, which is to replace the 
current production, consumption and services tax. WT/ACC/YEM/18 
Page 20  
 
 Answer:
 
Law No. 19 of 2001 on General Sa les Tax and its amendments can be obtained through document 
WT/ACC/YEM/18/Add.1. 
- Quantitative import restrictions, including prohibitions, quotas, and licensing systems 
Question 58 
Factual Summary, Table 11; WT/ACC/YEM/17:  We  appreciate receiving this information.  
When will Yemen provide the Secretariat with its definitive list of prohibited imports? 
We are analyzing the information in the tables and text of this section and will provide a 
separate paper on these issues in the near future. 
Answer:  
Please see document WT/ACC/YEM/17/Rev.1. 
Question 59 
Paragraph 66 of the Factual Summary:  We  welcome Yemen's commitment to review 
prohibition of imports of coffee and mango an d seasonal restrictions on certain agricultural 
products to bring them in compliance with the WTO rules. 
Answer:  
Yemen appreciates WTO members' understanding on th e issue related to the prohibitions of coffee 
and mango and seasonal restrictions on certain agricultu ral products.  We would like to reaffirm the 
importance of maintaining special treatment to su ch products of high importance and sensitivity to 
Yemen's economy and producers, where many farmer s' livelihoods are dependent on such products.  
Question 60 
We note that the list of prohibited imports is v ery long.  In particular we would draw attention 
to some products included in the list, namely different alcohol beverages and products prepared 
or preserved by alcohol, used cars, buses, lorr ies and aircraft, publications, books, prints and 
movies, scrap, used vehicles and their spare pa rts and telegram and wireless phones. Are these 
products produced and sold domestically in Yemen? 
Answer:  
Please refer to the answer of Question 58, i.e. the revised list (please see document 
WT/ACC/YEM/17/Rev.1).  Most products referred to  in the question are not produced nor sold 
domestically.  
Question 61 
Paragraphs 69-70 and Question 75 of document WT /ACC/YEM/11:  We note that only Yemeni 
nationals can be granted technical clearance for importation of medicines, medical equipment, 
books, newspapers, audiovisual and other artistic  or literary works.  We would ask Yemen to 
explain the reasons of this discriminatory trea tment, and would urge Yemen to equalize the 
treatment of foreign and Yemeni nationals in accordance with Articles III and XI of GATT.  WT/ACC/YEM/18 
 Page 21 
 
 
 Answer:  
Please refer to the answer to Question 38. 
Question 62 
Can foreigners get a technical clearance fo r importing fertilizers and pesticides?  
Answer:  
A technical clearance for importing fertilizers and pesticides is confined to Yemeni nationals.  
Question 63 
Could Yemen explain exhaustively the criteria re quired for issuance of technical clearance and 
their legal basis as regards the following prod ucts: seeds and fertilizers, pesticides, plants, 
explosives and fireworks, books, newspapers, a udiovisual and artistic works and drugs and 
medical equipment. With the criteria we mean exha ustive list of all documents that need to be 
submitted to the issuing authority and other criteria relating to the qualifications and other requirements regarding the applicant/importer. 
Answer:
 
Information on the procedures of import licensing related to literary works and artistic works, 
magazines and newspapers, Drugs a nd Medical Appliances, plants, seeds, pesticides, and fertilizers, 
explosives and fireworks respectively can be found in document WT/ACC/YEM/20.  
Question 64 
Paragraph 73:  We thank Yemen for submitting list of duties, charges and fees (document 
WT/ACC/YEM/11).  We note that many of the fees are given as ad valorem , or per/amount, 
which indicates that they do not correspond to  services rendered.  We would urge Yemen to 
bring all its fees and charges in compliance with the WTO rules and Article VIII GATT. 
Answer:  
Please refer to the answer of Question 52. 
Question 65 
Paragraph 74:  We welcome Yemen's commitme nt to comply with the WTO Agreement on 
Import Licensing Procedures upon accession, and to operate any import licensing regime in 
compliance with the WTO Agreements.  
Answer:  
Yemen reiterates its commitment to be in line with the WTO Agreement on Import Licensing 
Procedures, upon accession.  However, Yemen need s to enhance its capabilities to meet such 
commitment through technical assistance.  WT/ACC/YEM/18 
Page 22  
 
 - Customs valuation 
Question 66 Factual Summary, paragraphs 75-79; document WT/ACC/YEM/10, Question 1:  The 
establishment of an efficient, transparent cu stoms service based on the WTO Agreement is a 
major facilitator of trade and economic growth.  It  is a major benefit to the applicant's business 
community. 
We are disappointed to learn that Yemen believ es that it needs seven years to implement the 
Customs Valuation Agreement, especially when it  has a draft customs law under consideration 
by the House of Representatives and a well-f unded, professional technical assistance program 
available to it.  
We support Yemen's eligibility to seek a transition period. 
However, transition periods must be linked to t echnical assistance through an action plan that 
will become part of the accession protocol.   
Technical assistance and the implementation targets are just two sides of the same coin.  If the 
applicant doesn't use its technical assistance s upport to gain the capacity to implement WTO 
provisions, then what is its purpose? 
On customs valuation, we have provided significant resources to train Yemeni customs officers 
to value imports according to the principl es established in the WTO Customs Valuation 
Agreement.   
The training program has been successful so far. Unfortunately, despite the advances made by Yeme ni customs officers, Yemen has declined to 
move the draft customs law in its House of Representatives. 
The lack of progress on enactment of this law has become a problem, since we are finding it 
difficult to see much purpose in further traini ng of customs officers in the near term to 
implement a draft law that may not be enacted for many years. 
We are very concerned that this will set a pre cedent for implementation for the other Action 
Plans that Yemen has proposed to the Working Party and for the technical assistance requests 
that Yemen has made to support those action pl ans.  If Yemen is unwilling to use the technical 
assistance provided to follow through in those a reas where the assistance has produced tangible 
progress, then what is the purpose? 
We hope Yemen recognizes the relationship be tween transitions and technical assistance and 
between technical assistance and implementati on of the WTO Agreement, and recognizes the 
importance of moving the new customs law toward s enactment by the House of Representatives. 
As the draft law moves through Yemen's parliamentary process, we urge the Yemeni 
government to provide Members with opport unities to review the draft and to provide 
comments and suggestions.  WT/ACC/YEM/18 
 Page 23 
 
 
 Answer:  
Yemen would like to reiterate its firm belief of the importance of reforming its Customs Law which 
would reflect positively on Yemen's economy in gene ral and on foreign trade and WTO accession in 
particular.  Yemen highly values the understanding of WTO members of the efforts that Yemen has 
made and is still making in this regard as an LDC,  which needs the transitional period provided for 
LDC countries accompanied with the needed techni cal assistance, as such would accelerate and 
facilitate the implementation of commitments.  Th erefore, Yemen is committed to make the necessary 
reforms in its legislations, including the Custom s Law, to ensure their conformity with WTO 
provisions. 
Regarding legislation, Yemen is still in the proces s of revising the amendments to the Customs Law, 
taking into consideration the comments and views of stakeholders to ensure substantial improvements 
and to reflect on the positive impact on the na tional economy, while complying with all WTO 
requirements.  
Regarding the implementation of the Customs Va luation Agreement, please find the respective 
implementation action plan including an indication of  the technical assistance required in document 
WT/ACC/YEM/19.  We would like to confirm that even  after the issuance of the amendments to the 
law; full implementation will require a transition pe riod through which the implementation is staged 
based on having qualified staff and the availability  of automated programs that contribute in 
determining the value for customs purposes and risk analysis in such a way that facilitates smooth 
implementation.  In addition, other related entiti es dealing with Customs should become fully aware 
of the concepts and methods included in the agreement. 
Regarding the technical assistance provided in cust oms valuation, Yemen thanks the countries that 
provided such assistances which proved to be quite useful.  Yemen appreciates the continuity and completion of this assistance and others provided or requested from members and other organizations 
as mentioned in the action plan which comes in li ght of increased number of points of entry and the 
continuous need for training and qualifying in mo re than one area and specialization like audit, 
inspection, audit and revision in points of entry and control departments at the Customs Authority 
premises.  In addition to promoting awareness among stakeholders including the private sector, 
training the trainers, assessing the training programs , implementing the assisting automated programs.  
Yemen has plans for programs and training cours es that need funding within the framework of 
technical assistance.  In particular, Yemen needs technical assistance in the area of value 
determination and risk analysis programs etc.  
Question 67 We take note of the seven year transition period requested to comply fully with the Customs 
Valuation Agreement (CVA). We would draw the attention of Yemen to the fact that a 
transitional period should be requested according to Article 20 of the CVA if the date of implementation of the CVA is after the date of accession. 
Answer:
 
While Yemen appreciates the understanding of the Wo rking Party members for the transitional period 
requested for the implementation of the Customs Va luation Agreement, Yemen would like to confirm 
its need for seven years, as explai ned in the answer to Question 66. WT/ACC/YEM/18 
Page 24  
 
 Question 68 
Paragraph 77 of the Factual Summa ry:  We note the explanation of Yemen that it will complete 
the revision of its Customs Law by 2007, including its by-laws.  We would be happy to have a copy of the draft legislation as soon as possible to be able to comment it.  We would also be 
happy to know when approximately th ese laws are going to be adopted. 
Answer:
 
Please refer to the answer of Question 66. 
Question 69 
We are looking forward to seeing the working pr ogramme in this area.  Can Yemen indicate 
when this will be available to the Working Party? 
Answer:  
The action plan for the implementation of the CVA can be found in document WT/ACC/YEM/19. 
- Rules of origin 
Question 70 Paragraph 86:  We welcome Yemen's commitme nt to comply with the WTO Agreement on 
Rules of Origin upon accession. 
Answer:
 
Yemen confirms its commitment to comply with  the WTO Agreement on Rules of Origin, upon 
accession. 
- Other customs formalities 
Question 71 
Factual Summary, paragraphs 82 and 88:  In par agraph 82, the Factual Summary stated that a 
certificate of origin is required for all goods import ed into Yemen.  In paragraph 88, the Factual 
Summary stated that "Each customs declaration in principle had to be accompanied by an 
invoice endorsed by the Chamber of Commerce or  any other body accepted by the Customs 
Authority.  This endorsement verified the origin of the imported good."   
Please explain why Yemen requires duplicate docume ntation of the origin of an imported good 
for purposes of customs clearance. 
Answer:  
Yemen does not require duplicate documentation for proving the origin of an imported good; the 
commercial invoice is sufficient if it contains a clear reference to the place of origin, endorsed by the 
Chamber of Commerce.  Otherwise a separate  Certificate of Origin is required.   WT/ACC/YEM/18 
 Page 25 
 
 
 - Anti-dumping, countervailing duties and safeguard regimes 
Question 72 Paragraph 91:  We welcome Yemen's commitme nt to apply any AD, CVD and SG in full 
conformity with the relevant WTO provisions.  We would be happy to receive the draft law on 
Safeguards as soon as available to be able to comment it.  Could Yemen indicate when this 
would be available? 
Answer:
 
A copy of the initial draft law on Safeguards and National Production Protection from Impact of 
Harmful International Trade Practices can be obt ained through document WT/ACC/YEM/18/Add.1. 
B.   EXPORT REGULATIONS 
- Export subsidies 
Question 73 Please explain if the Supreme Council for Expo rt Promotion (SCEP) provides any type of 
financial support to export oriented companies? 
Answer:
 
Currently, the Supreme Council for Export Promotion does not provide any type of financial support 
to export oriented companies.  
Question 74 
Please submit a copy of Republican D ecree No. 127/1997 for Members to review? 
Answer:  
A copy of the Republican Decree No. 127 of 1997 on the establishment of Yemeni Export Supreme 
Council can be obtained through document WT/ACC/YEM/18/Add.1. 
Question 75 
Paragraph 97 of the Factual Summary:  Will the new draft Customs Law under preparation 
also continue to include the provisions on th e duty draw back scheme? Will these provisions be 
changed in the new Customs law? 
Answer:  
The provisions on the duty drawback scheme w ill be included in the amendments to the 
Customs Law. 
Question 76 
Could Yemen explain in detail how its authorit ies verify which inputs are consumed in the 
exported products and how they control in pr actice that the drawback does not exceed the 
actual duties paid? WT/ACC/YEM/18 
Page 26  
 
 Answer:
 
After the submission of all documents by the app licant which specifies the quantity of imported raw 
materials throughout the year and the amount of the paid duties and fees, the inputs of the finished exported product are calculated in percentage incl uding the percentage of imported materials by a 
technical committee that decides on the basis of field visits for verification as per the request of the 
applicant prior to manufacturing process.  The repor t of this committee should indicate the quantities, 
weights, and types of those materials in details  and should be supported by invoices and importation 
details.  The report also shows the total quantity and the used quantity in production so that duty 
drawback only applies to imported foreign inputs. All this information and data is filled in a special 
form for duty drawback settlement.   
C.   INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS - Industrial policy, including subsidies Question 77 Please provide further details regarding Yemen' s objectives to encourage and develop the 
industrial sector.  Specifically , how does Yemen plan to "foster" the development of its 
industrial sector? 
Answer:
 
Yemen endeavours to develop the industrial sector th rough adopting a number of strategies including:  
- Establishing industrial zones and making them available for investment to be operated 
through different schemes including the BOT system; 
- Encouraging the establishment of industrial projects inside and outside the free zones 
including SMEs; 
- Providing and developing the necessary infrastructure needed for industry; 
- Encouraging local and foreign investment; and 
- Ensuring coherence between commercial, financ ial, monetary, industrial and other related 
policies.    
Question 78 We note that Yemen is considering revising its legislation on investment and industrial 
activities; simplifying export procedures enhancing the investment climate; and promoting Yemen's SMEs and handicrafts.  Please provide an updated copy of any revision to its 
legislation on the above-mentioned activities for Members to review. 
Answer:
 
Currently, Yemen is still in the process of reviewing the legislations in the above mentioned activities. 
The Working Party will be informed on an y new developments in that respect. 
Question 79 
Article 27:2 of the WTO SCM Agreement provides LDCs with a transitional period of eight 
years to eliminate their prohibited subsidies th at are contingent on the use of domestic over 
imported goods in the manufacturing process.    WT/ACC/YEM/18 
 Page 27 
 
 
 We request that Yemen identify the subsidies contingent on the use of domestic over imported 
goods in the manufacturing process for which it is requesting a transition period and provide the Working Party with an Action Plan for the elimination of such subsidies within that period by a date certain, e.g., no later than 31 Decem ber 2015, consistent with the provisions of the 
SCM Agreement and the Declaration on LDC Accessions. 
Answer:
 
Yemen will provide the Working Party with more de tailed information pertaini ng to this question, as 
soon as such information is available.  
Question 80 
Paragraph 102 of the Factual Summary:  As re gards 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 th at LDCs are exempted fr om the prohibition of 
export subsidies under Article 27 ASCM (Annex VII), but not from the prohibition of local content subsidies.  We therefore urge Yemen no t to resort to local co ntent subsidies in its 
industrial zones. 
Answer:
 
Yemen affirms its need to avail itself of trans itional periods in accordance with the SCM Agreement 
and the Hong Kong Ministerial Declaration.  
Question 81 
When establishing industrial zones, the Factual Summary states that the Yemeni government 
intended to "avail itself to local content and export performance requirements should such 
measures be considered conducive to Yemen's in dustrial development."  Could Yemen please 
clarify what is meant by this phrase and whether if in Yemen's opinion these local content requirements are consistent with the provisions of the WTO Agreement on Trade-Related Investment Measures?  
Answer:
 
Yemen believes that export performance and local cont ent requirements play an important role in its 
development. Nevertheless, these requirements will be used in compliance with the TRIMs 
Agreement including special and preferential treatment  provisions for LDCs, Doha and other relevant 
Ministerial Declarations as well as the Guidelines on the Accession of LDCs.  
- Technical barriers to trade, standards and certification 
Question 82 
Factual Summary, Paragraph 104:  This paragraph indicates that in addition to international 
standards, Yemen is "also guided by Gulf st andards."  The WTO TBT Agreement states that 
international standards, or the relevant part of  them, shall be used as the basis for technical 
regulations, unless their use would be ineffectiv e or inappropriate.  Does Yemen use Gulf 
standards as the basis for technical regulations?   If yes, for what products and under what 
rationale?   WT/ACC/YEM/18 
Page 28  
 
 Answer:
 
Yemen is committed to use international standards or  the relevant parts of them as a basis for its 
technical regulations.  As far as the use of standards for the preparation of rules, guidelines, or characteristics for products or related processes a nd production methods is c oncerned, Yemen uses 
Gulf standards to the extent that these are in line with international standards.   
Question 83 Factual Summary, Paragraph 105:  The summar y indicates that Yemen seeks a "transition 
period" to implement the TBT Agreement.  In genera l, we do not support a transition period to 
implement the WTO Agreement on Technical Ba rriers to Trade for acceding countries.  
However, because Yemen is an LDC, we recognize that Yemen can seek transition periods.  As 
we previously mentioned with respect to Custom s Valuation, the relationship between technical 
assistance, actual implementation of the Agreeme nt, and the transition period will have to be 
validated.  For example, it is difficult to reconc ile Yemen's request for a seven-year transition 
period when it has already indicated that th e principles of the TBT Agreement are covered by 
existing legislation (paragraph 105), established m echanisms for inter-Ministerial coordination 
in the development of standards, technical reg ulations and conformity assessment procedures, 
and to publicize and receive comments on dra fts (paragraph 106-7, and is in the process of 
establishing its enquiry point (paragraph 110).  It  would be helpful to know specifically which 
Laws Yemen believes need to be reviewed and adjusted in order to ensure compliance with the 
WTO TBT obligations.  We also note Yemen's in terest (stated in its Action Plan) in receiving 
technical assistance on training for the preparation of notifications and would encourage 
relevant officials to participate in the next TBT Committee meeting of officials responsible for 
information exchange.  The development of additional technical regulations and conformity assessment procedures is not a condition of  WTO compliance but such strengthening of 
Yemen's infrastructure should be viewed as an ongoing interest and target for additional 
assistance. 
Answer:
 
Yemen is in the process of examining its legislative,  administrative, and institutional structures with a 
view to ensuring full compliance with the TBT Agre ement within the requested transitional period. 
This process which is also reflected in the TBT Action Plan turns out to be more arduous than 
previously envisaged.  Yemen is in the process of identifying laws that may need revision.  Against 
the background of its considerable deficiencies in this field, Yemen stresses the need for 
comprehensive technical assistance and welcomes the preparedness of Member countries to consider 
TA needed to enhance Yemen' s capabilities in this regard. 
Question 84 
Factual Summary, Paragraph 109:  According to  this paragraph, certificates issued by 
accredited laboratories of the country of orig in are required for imported products.   
Please clarify which products are subject to this requirement. 
Please explain the rationale for mandating certificat ion for the specific products subject to this 
requirement.   
What are the standards and/or technical regulat ions against which the product is assessed?   
Are domestic manufacturers subject to the same requirement?    WT/ACC/YEM/18 
 Page 29 
 
 
 Answer:  
The products requiring those certificates are listed in Annex 2. The rationale for mandating certification for specifi c products is to ensure a positive assurance of 
conformity with technical regulations and standard s, the prevention of deceptive practices, and the 
facilitation of trade. 
The products will be evaluated according to Yemeni  standards and technical regulations which are 
based on international standards. 
Yes, domestic manufacturers are subject to the same requirements.   
Question 85 
We thank Yemen for submitting the action plan  for implementation of the TBT Agreement and 
a document setting out the priorities and specific needs for TA in this field.  We also take note of 
the timing foreseen for full compliance, by 2013. 
Answer:
 
Yemen confirms its commitment to comply with  the TBT Agreement by the end of a proposed 
transitional period.  However, this would requir e providing the technical  assistance needed as 
specified in document WT/ACC/YEM/16 titled "Priorities and Specific Needs for Technical 
Assistance in the Technical Barriers to Trade (TBT) Field".  
- Sanitary and phytosanitary measures 
Question 86 Factual Summary, Paragraph 111:  Please pr ovide the Secretariat with copies of Law 
No. 32/1999 "On Plant Quarantine"; Law No. 13/2004 "On Animal Wealth"; and Law 
No. 44/1999 "On Standardization, Metrology and Qua lity Control", particularly any drafts that 
may exist, to provide interested Members with  an opportunity to review these measures. 
Answer:
 
A copy of Law No. 38/1999 on (Plant Quarantin e), Law No. 17/2004 on (Animal Wealth) and Law 
No. 44/1999 on (Specifications, standards and qualit y control) can be obtained through document 
WT/ACC/YEM/18/Add.1.  
A new draft on Plant Quarantine is under preparation and will be submitted to the Working Party at a 
later stage. 
Question 87 
Factual Summary, Paragraph 111:  Please provide further details on the process used by the 
government to amend existing or to enact ne w SPS measures, specifically related to the Law 
No. 32/1999 "On Plant Quarantine"; Law No. 13/2004 "On Animal Wealth"; and Law 
No. 44/1999 "On Standardization, Metrology and Quality Control" to provide the legislative basis for the protection of plant life and health; animal life and health; and food safety. Will the government provide the public, including non-Yeme ni interested parties, with copies of the 
draft measures? Will the public have an opportunity  to comment on the drafts? If so, how will WT/ACC/YEM/18 
Page 30  
 
 the government take public comments and suggest ed changes into account when revising the 
measures? 
Answer:
 
The process used by the government to amend exis ting or enact new SPS or related measures can be 
exemplified through the case of the new draft law on SPS (Plant Quarantine), as follows:  a new law 
on SPS (Plant Quarantine) has been drafted and is being discussed at the moment with interested 
parties to solicit their comments.  The Plant Quarantin e Department within the Ministry of Agriculture 
and Irrigation is receiving replies and comments on th is draft.  Consideration will be given to 
substantial remarks especially with a view to comp liance with the SPS Agreement.  The final version 
thus prepared will be submitted to the Cabinet for endorsement and then forwarded to the Parliament. 
In doing so, the government is fully prepared to  take comments and suggestions into account when 
drafting, enacting, or revising the respective le gislation.  In additio n, Yemen will publish new 
measures and make them available to interested pa rties, including non-Yemenis.  However, to fully 
meet this and other transparency obligations, th is requires the enhancement of Yemen's technical 
capacities, as specified in document WT/ACC/YEM/ 14, titled "Technical Assistance Requirements in 
the Area of Sanitary and Phytosanitary Measures".  
Question 88 
We thank Yemen for submitting the action plan and checklist for implementation of the SPS 
Agreement, as well as a document setting out the needs of TA in this area. We also note the 
timing foreseen for full compliance, by 2009. 
Answer:  
Yemen confirms its commitment to comply with  the SPS Agreement by the end of a proposed 
transitional period. However, this would require providing the technical assistance needed as specified 
in document WT/ACC/YEM/14 titled "Technical Assist ance Requirements in the Area of Sanitary 
and Phytosanitary Measures".  
Question 89 
In the Factual Summary, Paragraph 66, Yemen indi cated it has seasonal restrictions for some 
agricultural products.  Could Yemen possibly speci fy which products are subject to seasonal 
restrictions?  
Answer:  
Table 7:  Products subject to Seasonal Import Restrictions  
HS Code Item 
0701.90 Potato:  other than seeds 
0702.00 Tomatoes, fresh or chilled. 
07.05 Lettuce... etc 
08.05 Citrus fruit, fresh or dried. 
0805.10 Oranges 
0805.20 Mandarins etc 
0805.50 Lemons etc 
08.06 Grapes, fresh or dried. 
08.07 Melons (including watermelons) and papaws (papayas), fresh. 
  WT/ACC/YEM/18 
 Page 31 
 
 
 Imports of apples are allowed throughout the whol e year with an additional duty imposed during 
April-September. 
- Trade-related investment measures 
Question 90 Factual Summary, paragraphs 116-118; document WT/ACC/YEM/10, Questions 23 and 31:  
Both responses contain the following assertion:  "the Decision of Ministers at the 6th WTO 
Ministerial Conference in Hong Kong allows LDCs  to use local content measures."  We do not 
dispute the assertion.  However, it is clear that the Ministers intended that they were establishing a temporary exception to the TRIMS Agreement for LDCs.  Quoting the decision, "LDCs shall be allowed to maintain on a tempor ary basis existing measures that deviate from 
their obligations under the TRIMs Agreement.  LDCs  will be allowed to maintain these existing 
measures until the end of a new transition period, lasting seven years."   
In order to utilize such transitions to mainta in its TRIMS, Yemen must identify them for 
notification.   
Yemen also should indicate how long within the allowable period of seven years it believes it 
must maintain these measures.   
We seek a commitment for the Working Party report to eliminate all measures inconsistent with 
the Agreement by a date certain, e.g., no la ter than 31 December 2014, consistent with the 
provisions of the TRIMs Agreement, the Declarat ion on LDC Accessions, and the Hong Kong 
Ministerial Declaration. 
Answer:
 
Yemen will notify measures that fall under the TRIM s Agreement with a view to eliminate them by 
the end of the transitional period for LDCs.  
- State-trading entities 
Question 91 Text Suggestion:  As the material here duplicates material in the State-Owned Enterprises and 
Privatization Section, we recommend combining the two sections for the sake of clarity. 
Factual Summary, Paragraphs 119 and 120:  Th e description of the activities and special 
privileges of the subsidiaries of the Yemen Gen eral Corporation for Oil and Gas in paragraph 
120 contradict the statement in paragraph 119 th at Yemen had no State-trading entity falling 
within the purview of Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994.  Yemen should notify the Yemen General 
Corporation for Oil and Gas as soon as possible.   
Answer:
 
Please refer to the answer of Question 27. WT/ACC/YEM/18 
Page 32  
 
 Question 92 
Paragraph 120:  How are imports of petroche mical products regulated in Yemen? Who can 
import petrochemicals? 
Answer:
 
Imports of petrochemicals are open to the private sector. Question 93 We note that on the basis of the information given on the Holding Company "The Yemen 
General Company for Oil and Gas, we consider th is company as a State Trading Enterprise in 
the meaning of Article XVII GATT.  We would re quest Yemen to notify this company to WTO 
in accordance to Article XVII GATT upon accession.  
Answer:
 
Please refer to the answer of Question 27. 
- Free zones, special economic areas 
Question 94 Our comments on subsidies also apply to Free Zo nes.  Yemen is urged not to resort to local 
contents subsidies in its Free Zones. 
Answer:
 
Please refer to the answer of Question 80. 
Question 95 
Are all industries in every sector permitted to lo cate in Yemen's free zones and special economic 
areas? 
Answer:  
Permitted industries in the free zone are tho se permitted to be established in Yemen.  
Question 96 
Please explain what criteria must be met in or der for a company to receive the tax exemptions 
given within the zones. 
Answer:  
Establishment in the Free Zone is the only criteria for receiving the tax exemptions.  
Question 97 
We would welcome a copy of Law No . 4/1993 "On Free Zones" to review.  WT/ACC/YEM/18 
 Page 33 
 
 
 Answer:  
A copy of Law No. 4/1993 can be obtained through document WT/ACC/YEM/18/Add.1.  
Question 98 
Paragraphs 122 and 123 of the Factual Summary  refer to "the Free Zones Law."  Is there 
another law besides Law No. 4/1993 "On Free Zon es?"  If so, we would appreciate a copy to 
review. 
Answer:  
Law No. 4/1993 is the only law governing the free zones.  
V.   TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- Participation in international intellectual property agreements 
Question 99 
The WTO Factual Summary states in paragraph 141  that the representative of Yemen said he 
expected accession to the WIPO Copyright Treaty and WIPO Performances and Phonograms 
Treaty (the "WIPO Internet Treaties") to lead to "financial, institutional and administrative 
burdens exceeding Yemen's capabilities.  Howe ver, Yemen would examine the feasibility of 
acceding to them."   
Please provide an update on Yemen's examination of the feasibility of acceding to the WIPO 
Internet Treaties.  Further, please explain what sort of financial, institutional and 
administrative burdens Yemen foresees in acceding to these treaties.   
Answer:  
Yemen has become a member to the Paris Convention on 15 November 2006.  On 5 June 2007, the 
Parliament approved the accession to the  Berne C onvention. For the implementation of the TRIPS 
Action Plan, Yemen has already indicated the financ ial and technical assistance needed in document 
WT/ACC/YEM/8.  
Yemen believes that its current priority is to seek  compliance with the TRIPS obligations. Therefore, 
Yemen does not intend to accede to the WIPO Internet Treaties.  
- Copyright and related rights Question 100 Paragraph 147 of the Factual Summary states th at "[f]ull compliance with the obligations under 
Article 12... of the TRIPS Agreement would be a ddressed in the new [copyright] Law."  TRIPS 
Art. 12 establishes a term of protection of life pl us 50 years (or 50 years from creation) for all 
copyrighted works, other than photographic wo rks (and applied art).  However, neither the 
WTO Factual Summary nor any of the other documents provided by the WTO specifically 
addresses Art. 39 of Yemen's 1994 copyright la w, which provides for permanent copyright 
protection for rights held by scientific, litera ry or artistic bodies and institutions.   WT/ACC/YEM/18 
Page 34  
 
 Please confirm that under Yemen's revised copy right law, Article 39 of Yemen's current 
copyright law will be amended to conform to  the term of protection required under TRIPS 
Article 12/Berne Article 7. 
Answer:
 
Yemen confirms that under its revised copyright la w, Article 39 of Yemen's IPR law will be amended 
to conform to the term of protection indi cated under TRIPS Article 12/Berne Article 7. 
Question 101 
TRIPS Article 14(2) provides for rights of produc ers of phonograms to authorize or prohibit the 
direct or indirect reproduction of their phonograms, and TRIPS Article 14(3) provides for the rights of broadcasting organizations to prohibit unauthorized fixation, reproduction of 
fixations, re-broadcasting by wireless means of br oadcasts and communication to the public of 
TV broadcasts of the same.  This issue is not addressed in any of the WTO documents provided or in Yemen's 1994 copyright law.  
Please explain how Yemen intends to implement these obligations.   
Answer:
 
Articles 14(2) and 14(3) of the TRIPS Agreement will be taken into consideration in the draft 
copyright law.   
Question 102 
In paragraph 148 of the Factual Summary, the rep resentative of Yemen is reported to have 
stated that compliance with Article 9 of th e TRIPS Agreement, which requires Members to 
comply with Articles 1-21 of the Berne Conventi on, would be addressed in the new Law.  None 
of the WTO documents, however, specifically discusses Article 18 of the Berne Convention, 
which provides that works that have not yet falle n into the public domain in their country of 
origin or in the country where protection is claimed must be protected in a Member state, nor is this issue addressed in Yemen's 1994 copyright law.  
Please explain how Yemen will implement the requirements of Article 18 of the Berne 
Convention, incorporated into the TRIPS Agreement  through Article 9, in its revised copyright 
law.   
Answer:
 
Article 18 of the Berne Convention, incorporated in to the TRIPS Agreement through Article 9, will be 
taken into consideration in the draft copyright law.   
Question 103 
In paragraph 148 of the Factual Summary, the rep resentative of Yemen is reported to have 
stated that compliance with Article 9 of the TRIPS Agreement would be addressed in Yemen's 
revised copyright law.  Article 9(1) of TRIP S requires Members to comply with Articles 1 
through 21 of the Berne Convention, excluding Article 6 bis pertaining to moral rights.  The 
representative further stated that Article 3. 4 of Yemen's 1994 copyright law corresponded to 
Article 12 of the Berne Convention, which grants authors a right of adaptation, and that 
Article 16 of Yemen's law, which seems to perm it unauthorized and uncompensated adaptations  WT/ACC/YEM/18 
 Page 35 
 
 
 of works for the purpose of making an independe nt new work, referred to quotations and not to 
adaptations of works.  However, the English tr anslation of Article 16 of Yemen's copyright law 
does not appear to refer to quotations, and Ar ticle 13 of Yemen's law, which lists authors' 
exclusive rights, does not include a full right of adaptation.   
Please confirm that Article 16 of Yemen's curren t copyright law refers to quotations, and that 
Yemen's revised copyright law will grant authors a full right of adaptation as required by 
Article 12 of the Berne Convention (applicable through Article 9 of TRIPS). 
Answer:  
Yemen reconfirms that Article 16 of the current IP law refers to "quotations".  Moreover, a full right 
of "adaptation" will be considered in line with Article 12 of the Be rne convention, applicable through 
Article 9 of TRIPS. 
- Trademarks, including services marks 
- Geographical indications, including appellations of origin Question 104 According to the legislative action plan (Document WT/ACC/YEM/9/Rev.1), we understand 
that the preparation and review of a draft La w on Trademarks and Geographical Indications 
has taken place.  The law is expected to be in force in 2008.   
Although the preparation and review has been comp leted, can amendments to the draft law still 
be made?  
Answer:
 
The Yemeni competent authorities may propose amen dments to the draft of any law as long as 
constitutional procedures for issuance are not finalized. 
Question 105 
The draft law does not provide that the principles  of priority and exclusivity are preserved for 
trademarks and geographical indications.  TRIP S Agreement Article 16.1 requires that owners 
of trademark rights established prior to a lat er applied for GI should be able assert the 
exclusivity of the prior trademark rights. 
How will Yemen address the relationship between trademarks and geographical indication in 
which the rights of trademark owners are pres erved against later in time and confusingly 
similar geographical indications consistent with Articles 16(1) and 24(5) of the TRIPS Agreement? 
Answer:
 
The relationship between trademarks  and geographical indication will be  taken into consideration in 
the trademarks and geographical indications draft law in accordance with Articles 16(1) and 24(5) of the TRIPS Agreement. 
 WT/ACC/YEM/18 
Page 36  
 
 - ENFORCEMENT 
Question 106 Where does Yemen law provide the right holder the right to information of third parties 
involved in infringement?  (TRIPS Article 57). 
Answer:
 
The Yemeni legislation including its IPR law does not provide the right holder with the right to 
information about third parties involved in infringement.  
Question 107 
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:  
Taking into account Yemen's capabilities and the comp lexity of the TRIPS Agreement, Yemen avails 
itself of additional flexibility provided for LDCs including the extended transition periods, and urges 
WTO Members to provide the requested technical and financial assistance, as a prerequisite for the 
institutional, organizational and administrative ar eas including the related enforcement issues. 
VII.   TRANSPARENCY 
Question 108 Factual Summary, Paragraph 196; WT/ACC/YEM/ 10, Questions 140 and 141:  We appreciate 
the further description of the breadth of publicatio n of the Official Gazette and Yemen's efforts 
to provide businesses with opportunities to comment on draft laws and regulations.   
We would appreciate further details on the meth ods used by the government to provide the 
public with copies of draft laws and regulations. 
Are draft laws and regulations made available to non-Yemeni businesses and other interested 
parties? 
Does Yemen's law specifically require the governme nt to give the public an opportunity to 
review draft laws and regulations?  If so, does the law also require government to take public 
comments and suggested changes into account wh en revising draft legislation and regulations? 
If Yemen does not have a law requiring governme nt to seek public comment on draft laws and 
regulations, does Yemen intend to enact such legi slation to implement its obligations under the 
WTO Agreements? 
Answer:
 
The Yemeni Government involves the public in th e process of drafting various laws by means of 
meetings, seminars and work shops prior to the submission of drafts to the cabinet and subsequently to 
the parliament.  WT/ACC/YEM/18 
 Page 37 
 
 
 There is no separate law that requires the governme nt to give the public the opportunity to review 
draft laws and regulations. However, the governme nt takes public comments and suggestions into 
account when revising or reviewing draft laws and re gulations.  Where provisions for transparency are 
required under specific WTO agreements, the Gove rnment will incorporate a requirement in the 
respective legislation. 
_______________ 
 WT/ACC/YEM/18 
Page 38  
 
 ANNEX 1 
A List of International and Bilateral Investment  Agreements of which Yemen is a Signatory to
 
No. Country 
1.  Egypt 
2.  Jordan 
3.  Syria 
4.  Iran 
5.  Morocco 
6.  Malaysia 
7.  China 
8.  Djibouti 
9.  Oman 
10.  Ethiopia 
11.  Lebanon 
12.  Kuwait 
13.  Belgium 
14.  Tunisia 
15.  Qatar 
16.  Algeria 
17.  Sudan 
18.  Pakistan 
19.  Turkey 
20.  Indonesia 
21.  Ukraine 
22.  Bulgaria 
23.  U.A.E. 
24.  India 
25.  Romania 
26.  Russia 
27.  Mongolia 
28.  Croatia 
29.  Austria 
30.  Belarus 
31.  South Africa 
32.  Germany 
33.  Hungary 
34.  Italy 
35.  Eritrea 
36.  Mauritania 
37.  People's Democratic Republic of Korea 
38.  Sweden 
39.  United Kingdom 
40.  France 
41.  Netherlands 
42.  Agreement of the Islamic Corporation fo r Investment Guarantee and Export Credit 
43.  Agreement of the International Centre  for Settlement of Investment Dispute 
  WT/ACC/YEM/18 
 Page 39 
 
 
 ANNEX 2 
List of Products Covered under Internationa l Conformity Certification Program (ICCP)  
Group (1):  Toys 
No. Item HS Code 
1. Bicycles and wagons  9501 
2. Dolls 9502 
3. Entertainment toys including puzzles and assembly toys 9503 
4. Toys in the form of animals or creatures 9503.40 , 9503.41 
5. Other toys in the form of sets or groups 9503.70 
6. Toys with engine inside 9503.80 
 
Group (2):  Electrical and electronic products  
No. Item HS Code 
1. Cables and electrical wires 8544, 8544.10, 8544.20 
2. All types of conductors 8544.49. 20, 8544.50, 8544.51, 544.51.10, 8544.40, 
8544.41, 8544.41.20 
3. Circuit breakers 8536, 8536.20 
4. Electrical transformers 8504.21, 8504.22, 8504.31, 8504.32, 8504.33, 850.34 
5. Receiving devices (t elevision, radio and 
antenna) 8528.00, 8528.11, 8528.12, 8528.13, 8527.00, 8527.10, 
8527.12, 8527.13, 8527.19, 8527.20, 8527.21, 8527.29, 
8529.10, 8529.10.10 
6. Household microwave ovens 8516.50 
7. Household freezers 8418.40 
8. Household vacuum cleaners and water 
suction appliances 8509.10 
9. Lift and elevator systems 8428.10.10, 8431.31 
10. Personal computers 8471.41 
11. Telephones, wireless phones and mobiles 8517 .10. 8517.11, 8517.19, 8517.50, 8525.20.10 
12. Fax and telex machines 8517.21, 8517.22 
13. Photocopying machines - Videos 9009.11,9009.12,9009.21,9009.22,900.30 
14. TV Display sets (video)  
15. Household clothes drying machines 8451.21 
16. Air conditioners 8415.10 
17. Electrical ovens including cooking 
surfaces, kettles, grills and toasters 8516.60,8516.71,8516.72 
 
Group (3): Vehicles  
No. Item HS Code 
1. Passenger automobiles, trucks and buses 
(new) 8701, 8702, 8703, 8704, 8705 
2. Passenger automobiles, trucks and buses 
(used) 8701, 8702, 8703, 8704, 8705 
3. New tyres for passenger automobiles, 
trucks and buses 4011.10, 4011.20 
 WT/ACC/YEM/18 
Page 40  
 
 Group (4):  Safety personal devices 
 
No. Item HS Code 
1. Safety head helmets 6506.10 
2. Rubber and plastic safety shoes 6402, 6401 
3. Eye protectors 9004 
4. Ears protectors 6506.10 
5. Nose and month masks 6506.10 
6. Safety gloves 6216 
 Group (5):  Foodstuffs with its all types    
Group HS Code 
Group (6):  Steel Bars for the Re-enforcement of 
Concrete 7208,7209,7210,7211,7212, 7213, 7214,7215 
Group (7):  Portable Steel Cylinders for Liquefied 
Petroleum Gases (LPG) 7311 
Group (8): Timber   4407,4408,4409,4410,4411,  4412,4418,4420,4421, 
 
__________