RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/CGR/4 
5 February 2008 
 (08-0541) 
Working Party on the 
Accession of Montenegro  
 
 
  
DRAFT REPORT OF THE WORKING PARTY ON THE  
ACCESSION OF MONTENEGRO  
TO THE WORLD TRADE ORGANIZATION  WT/ACC/SPEC/CGR/4 
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  TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................2  
- Monetary and fiscal policies................................................................................................... ..2 
- Foreign exchange and payments system .................................................................................4  
- Investment regime.............................................................................................................. .......5  
- State ownership and privatization...........................................................................................8  
- Pricing policies ............................................................................................................... .........11  
- Competition policy............................................................................................................. .....12  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................13  
- Powers of executive, legislative and judicial branches of government...............................13  
- Authority of sub-central governments ..................................................................................15  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................16  
- Trading rights ................................................................................................................. ........16  
A. IMPORT REGULATIONS....................................................................................................20  
- Ordinary cust oms duties ........................................................................................................ 20 
- Other duties and charges....................................................................................................... .22 
- Tariff rate quotas, tariff exemptions.....................................................................................22  
- Fees and charges for services rendered.................................................................................23  
- Application of internal taxes to imports ...............................................................................24  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............29  
- Customs valuation.............................................................................................................. .....33  
- Rules of origin ................................................................................................................ .........34  
- Other customs formalities ...................................................................................................... 35 
- Preshipment inspection ......................................................................................................... .35 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................35  
B. EXPORT REGULATIONS ...................................................................................................36  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........36  
- Export rest rictions ............................................................................................................ ......37  
- Export subsidies ............................................................................................................... .......37  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................38  
- Industrial policy, including subsidies....................................................................................38  WT/ACC/SPEC/CGR/4 
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  -
 Technical barriers to trade, standards and certification.....................................................39  
- Sanitary and phytosanitary measures...................................................................................44  
- Trade-related investment measures ......................................................................................49  
- State-trading entities......................................................................................................... ......50  
- Free zones, special economic areas........................................................................................51  
- Government procurement......................................................................................................52  
- Transit........................................................................................................................ ..............53  
- Agricultural policies.......................................................................................................... ......53  
(a) Imports........................................................................................................................ .............53  
(b) Exports........................................................................................................................ .............54  
(c) Internal policies.............................................................................................................. .........55  
- Trade in ci vil aircraft........................................................................................................ ......55  
- Textiles regime ................................................................................................................ ........55  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................56  
- GENERAL........................................................................................................................ .......56  
- Industrial property protection...............................................................................................56  
- Responsible agencies for policy formulation and implementation .....................................56  
- Participation in international intellectual property agreements ........................................57  
- Application of national and MFN treatment to foreign nationals......................................58  
- Fees and taxes................................................................................................................. .........59  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................59  
- Copyright and related rights..................................................................................................5 9 
- Trademarks, including  service marks...................................................................................61  
- Geographical indications, including appellations of origin.................................................62  
- Industrial designs............................................................................................................. .......64  
- Patents........................................................................................................................ ..............65  
- Plant variety protection....................................................................................................... ...66 
- Layout designs of integrated circuits ....................................................................................67  
- Requirements on undisclosed information, including trade secrets and test data............67  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS......................................................................................................................... ..........67  
- ENFORCEMENT...................................................................................................................6 7 
- Civil judicial procedures and remedies.................................................................................67  
- Provisional measures ........................................................................................................... ...69 
- Administrative procedures and remedies.............................................................................70   WT/ACC/SPEC/CGR/4 
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  - Special border measures........................................................................................................ .70 
- Criminal procedures............................................................................................................ ...71 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................72  
VII. TRANSPARENCY .................................................................................................................74  
- Publication of information on trade......................................................................................74  
- Notifications.................................................................................................................. ...........74  
VIII.  TRADE AGREEMENTS .......................................................................................................74  
CONCLUSIONS .................................................................................................................... ..............76  
ANNEX 1 ........................................................................................................................ ......................77  
ANNEX 2 ........................................................................................................................ ......................79  
 
  WT/ACC/SPEC/CGR/4 
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 I. INTRODUCTION 
1. The Government of Montenegro applied for accession to the World Trade Organization on 
23 December 2004.  At its meeting on 15 Februa ry 2005, the General Council established a Working 
Party to examine the application of the Governme nt of Montenegro to accede to the World Trade 
Organization under Article XII of the Marrakesh Ag reement establishing the WTO.  The terms of 
reference and the membership of the Working Party are reproduced in document WT/ACC/CGR/2/[Rev.9].   
2. The Working Party met on 4 October 2005 under the Chairmanship of H.E. Mr. A. Gosnar 
(Slovenia); and on 5 July 2006; 27 February and 19 July 2007; and [          ] 2008 under the 
Chairmanship of H.E. Mr. A. Logar (Slovenia).   
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Montenegro (WT/ACC/ CGR/3 and Addendum 1 ), the questions submitted 
by Members on the foreign trade regime of Monteneg ro, together with the replies thereto, and other 
information provided by the authorities of Montenegro (WT/ACC/CGR/4 and Corrigendum 1; WT/ACC/CGR/7; WT/ACC/CGR/8; WT/ACC/CGR/10; WT/ACC/CGR/12 and Revisions 1 and 2; 
WT/ACC/CGR/13; WT/ACC/CGR/14; WT/ACC/CG R/15 and Addendum 1; WT/ACC/CGR/16 to 
21; WT/ACC/CGR/23; WT/ACC/CGR/24 and Adde ndum 3; WT/ACC/CGR/26; WT/ACC/CGR/27 
and Addendum 1;  ) including the legislative text s and other documentation listed in Annex I.   
INTRODUCTORY STATEMENTS 
4. The representative of Montenegro said that WT O accession was one of the main priorities of 
her Government, and Montenegro intended to accomp lish the process in the shortest possible time.  
She noted that although WTO rules and procedures ha d allowed Montenegro to initiate the accession 
process under the provisions of Article XII of th e Marrakesh Agreement as a "separate customs 
territory", Montenegro had – on the basis of a referendum held on 21 May 2006 – become a fully 
independent State assuming full responsibility for its political, security and economic system.  
Montenegro had become a Member of the United Na tions on 28 June 2006, and intended to join all 
relevant UN-related international organizations, and accede to intern ational conventions concerning 
intellectual property, standardization and other matters relevant to the WTO.   
5. On 3 June 2006, as Montenegro's Parliament had declared the independence of the Republic 
of Montenegro, it had also prescribed that all laws enacted by the former State Union of Serbia and 
Montenegro would continue to be applied in Mo ntenegro.  Thus, Montenegro was undertaking to WT/ACC/SPEC/CGR/4 
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 implement former State Union laws in the areas of  TBT and intellectual prope rty, and was developing 
the institutional capacity to deal with these matters .  She acknowledged that additional efforts would 
be needed to establish a system of technical regula tions and standards meeting the requirements of the 
TBT and SPS Agreements.  In other areas, Monteneg ro stood ready to make amendments and other 
changes as deficiencies in Montenegro's laws and re gulations were being identified by Members.   
6. She noted that much work had already been accomplished on the legislative front.  As per 
October 2005, virtually all necessary legislation ha d been passed to bring Montenegro into full 
compliance with the TRIPS Agreement.  A new customs law had been applied since 2001, and 
Montenegro had enacted a new Customs Tariff La w and a new Foreign Trade Law.  A Foreign 
Investment Law and a Free Zones Law had been intr oduced to stimulate the economy.  Most of the 
economy had been privatized, and her Government was in the process of privatizing the remaining 
large State-owned enterprises.   
7. Members of the WTO welcomed the applica tion from Montenegro to join the WTO and 
looked forward to a rapid accession on appropriate  terms and conditions.  Members appreciated 
Montenegro's willingness to comply with WTO rules and principles, noting that further work would be required to improve the legal framework and to strengthen Montenegro's institutions to implement 
and enforce WTO rules.  Some Members also pointed  out that Montenegro would need to eliminate 
some WTO-inconsistent measures.   
8. The Working Party reviewed the economic policie s and foreign trade regime of Montenegro 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by 
members of the Working Party on the various aspects  of Montenegro's foreign trade regime and on 
the terms and conditions of Montenegro's ac cession to the WTO are summarized below in 
paragraphs [9 to ...].   
II. ECONOMIC POLICIES 
- Monetary and fiscal policies 
9. The representative of Montenegro said that the Central Bank of Montenegro had been 
established as an independent institution with ex clusive responsibility to carry out Montenegro's 
monetary policy.  Pursuant to the new Constitutio n of Montenegro, the Central Bank was responsible 
for ensuring financial stability and supervising the banking sector.  The role of the Central Bank in 
this regard was nevertheless limited as Montenegro had adopted the euro as its currency from the time 
the euro had come into circulation on 1 January  2002.  Inflation in Montenegro was therefore 
primarily the result of imported inflation and supply-side shocks.    WT/ACC/SPEC/CGR/4 
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 10. According to the Law on the Central Bank of Montenegro, the Central Bank was also 
entrusted with the task of maintaining banking stabili ty as well as an efficient payments system in the 
Republic.  The banking sector had been reformed th rough restructuring and privatization, and the 
arrival of foreign-owned banks.  The Central Bank had adopted an extensive regulatory framework to 
govern the operations of commercial banks in Mont enegro, including some 35 by-laws addressing the 
supervision of banks and an additional seven by-l aws governing financial and banking operations.  
The payments system, originally centralized w ithin the Central Bank of Montenegro, had been 
operated through the commercial ba nks since 5 January 2004.   
11. Concerning the fiscal policy, the representative of Montenegro said that Montenegro had 
undertaken comprehensive fiscal reforms since 2001 in consultation with the World Bank and the 
International Monetary Fund.  Seve ral laws had been adopted to establish a more transparent system 
of taxation and expenditures and to enhance re venue collection, notably a new Law on Budget 
(RM OG Nos. 40/01 and 44/01) establishing the Treasury of the Republic of Montenegro, the Law on Public Procurement (RM OG No. 40/01), the Law on Tax Administration (RM OG No. 65/01), the 
Law on Local Self-Government Financing (RM OG Nos. 42/03 and 44/03), and the Law on Supreme 
Financial Institution for Auditing (RM OG No. 28 /04).  The Supreme Financial Institution for 
Auditing verified the collection and use of public  revenue, as well as the management of State 
property.  A medium-term framework for budget expe nditures had been introduced in the Budget Law 
for 2003 to improve the management of public ex penditure, and the concept of programme budgeting 
was being developed.  Other measures included th e introduction of fiscal cash registers and tax 
identification numbers.  The population had subm itted tax declarations for the first time in 
January 2003.   
12. At present, taxes were levied on the basis of the Law on Corporate Profit Tax 
(RM OG No. 65/01) as amended in Decembe r 2004; the Law on Personal Income Tax 
(RM OG No. 65/01) and the Law on Amendmen ts to the Law on Personal Income Tax 
(RM OG Nos. 37/04 and 78/06); the Law on Value Added Tax (RM OG Nos. 65/01, 38/02, 72/02 and 21/03); the Law on Excise Tax (RM OG No. 55/01); the Law on Administrative Fees 
(RM OG No. 55/03); the Law on Sales Tax for U sed Motor Vehicles, Vessels and Aircrafts 
(RM OG No. 55/03); and the Law on Real Estate Tax (RM OG No. 69/03).  The corporate profit tax was levied at a flat rate of 9 per cent.  The variab le rate of the personal income tax had been replaced 
by a flat rate under the 2006 amendments of the Law on Personal Income Tax (RM OG No. 78/06).  
The personal income tax would amount to 15 pe r cent in 2007 and 2008, 12 per cent in 2009 and 
9 per cent as of 2010.  A sales tax had been replaced  by value added tax in April 2003.  Excise taxes 
were currently applied to alcoholic beverages, toba cco and petroleum products.  The real estate tax, WT/ACC/SPEC/CGR/4 
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 levied on the market value of properties, was collect ed by the municipalities.  Article 6 of the Law on 
Local Self-Government Financing authorized munici palities to levy a surtax on personal income, the 
real estate tax, a tax on the consumption of alc oholic and non-alcoholic beverages, a tax on vacant 
construction land, and a tax on company names.  Taxes collected by the municipalities had accounted 
for approximately 5.4 per cent of total government revenue in 2004.   
13. In response to specific questions, the representativ e of Montenegro added that although duties 
and taxes collected at the border had represented mo re than 50 per cent of total government revenue in 
2004, these revenues were largely due to the applicati on of internal taxes (VAT and excise duties).  
Customs duties and charges had accounted for less th an 10 per cent of total government revenue in 
2004.  She confirmed that Montenegro's municipalities were not authorized to levy taxes or duties on 
imports.   
- Foreign exchange and payments system  
14. The representative of Montenegro said that the euro was the monetary unit, legal tender and 
reserve currency of Montenegro pursuant to the Law of the Central Bank of Montenegro.  The Law on 
the Central Bank (RM OG Nos. 52/00, 53/00 and 47/01), the Law on Banks (RM OG Nos. 52/00 and 
32/02), the Foreign Investment Law (RM OG No. 52/00), and the Law on Current and Capital 
Transactions enabled payments to be effected freel y without restriction.  Her Government did not 
impose any requirements or controls on the acquisiti on or disposition of foreign exchange by private 
individuals or firms, did not provide foreign ex change for any designated purpose, nor did it apply 
any limitations or restrictions on foreign accounts of  businesses or private citizens.  Montenegro did 
not maintain any foreign exchange r estrictions not explicitly approved by the IMF.  She added that the 
new Law on Current and Capital Tran sactions, which had entered into force in 2005, did not authorize 
any restrictions with respect to foreign exchange and payments for residents and non-residents alike.  
The new Law also covered foreign direct invest ment, trading in securities, foreign borrowing and 
lending, and deposits in foreign ba nks prohibited any discriminatory State-ordered restrictions on the 
free movement of capital.   
15. Asked to describe the circumstances under wh ich foreign accounts could be frozen and the 
right to appeal such decisions, she said that foreign or domestic accounts generally could be frozen 
only by court order, normally in the context of an ongoing dispute or in the execution of a judgement.  
In addition, Montenegro's tax authorities could freeze accounts if necessary to ensure payment of 
uncollected taxes, and an investigating magist rate could freeze an account in connection with a 
criminal investigation.  Such actions were subject to administrative appeal and to judicial review.    WT/ACC/SPEC/CGR/4 
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 16. Concerning Montenegro's relations with the IMF,  the representative of Montenegro recalled 
that the Socialist Federal Republic  of Yugoslavia (SFRY) had par ticipated in the Bretton Woods 
Conference (in 1944) and had been one of the f ounders of the IMF and the World Bank.  Between 
1980 and 1991, the SFRY had been approved for sev en stand-by arrangements to the value of 
SDR 3.5 billion, of which SDR 2.7 billion had been used.  On 20 December 2000, the IMF 
Committee of Executive Directors had decided that th e Federal Republic of Yugoslavia (FRY) met all 
requirements for becoming a member of the institution, with retroactive effect from 
14 December 1992, when the Board of Executive Di rectors of the IMF had concluded that the SFRY 
had ceased to exist.  The FRY's share of the asset s and liabilities of the former SFRY had been set at 
38.06 per cent.  In 2005, the IMF had granted Serbia and Montenegro a credit of US$200 million and this Agreement had enabled a write-off of th e remaining debt to the Paris Club totalling 
US$700 million.  After the proclamation of Montenegro 's independence, the ratio of all non-allocated 
rights and obligations had been set at 94.12 per cen t for Serbia and 5.88 per cent for Montenegro in 
accordance with the Agreement on Regulating Membersh ips in International Financial Organizations 
and Division of Rights and Obligations of the Two Republics signed between Montenegro and Serbia 
on 10 July 2006. 
17. Stressing that an efficient and transparent m onetary and foreign exchange system could 
facilitate trade and contribute to economic develo pment, a Member referred to ongoing discussions 
between the Government of Montenegro and the International Monetary Fund regarding certain 
aspects of the financial and foreign exchange system, and urged Montenegro to be ready to come into 
compliance with WTO rules, including Article XV of the GATT and Article XI of the GATS, and to 
factor this into the discussions with the IMF.   
18. In reply, the representative of Montenegro sai d that Montenegro was negotiating its status 
with the IMF, and WTO requirements were not cen tral in these talks as Montenegro was using the 
euro as its sole currency.  She reiterated that the Law on Current and Capital Transactions did not 
authorize any restrictions with respect to foreign exchange and payments.  She subsequently informed 
the Working Party that Montenegro had become a member of the IMF on 18 January 2007. 
- Investment regime 
19. The representative of Montenegro said that th e Economic Reform Agenda, a comprehensive 
four-year plan for the period 2003-2007, aimed at fostering a positive business climate in Montenegro 
based on transparent, non-discriminatory and non-di scretionary regulations, effective protection of 
investors' rights, and rapid and fair settlement of disputes.  The Agenda sought to develop an 
environment conducive to domestic and foreign investment by upgrading the physical infrastructure WT/ACC/SPEC/CGR/4 
Page 6  
 
 in Montenegro as well as in the context of ove rall legal and institutional reforms.  Among the 
objectives were to achieve a trade regime in confor mity with WTO rules, a modern commercial legal 
regime, the protection of propert y rights, streamlined administrative procedures, financial sector 
reform, and a stable macroeconomic environment.  Her Government was particularly mindful of the 
positive effect of investment in creating empl oyment.  In 2004, the Montenegrin Investments 
Promotion Agency (MIPA) has been established by  Government Decision.  The purpose of the 
Agency was to promote investment projects, deve lop Montenegro's investment promotion strategy, 
coordinate all activities to attract foreign investme nt, and develop partnershi ps between the public and 
private sector.  The Agency could provide informat ion to potential investors, but had no means to 
provide subsidies or other types of incentives.   
20. Foreign investment was regulated pursuant to th e Foreign Investment Law of the Republic of 
Montenegro (RM OG No. 52/00).  Foreign investors were (i) legal entities with their head office 
outside of Montenegro, (ii) foreign natural persons , or Montenegrin citizens having taken up residence 
abroad for more than one year, ( iii) an enterprise established in Montenegro by a foreign person, or 
(iv) a domestic enterprise with more than 25 per cen t foreign ownership.  Montenegro's investment 
legislation generally placed foreigners on equal foot ing with domestic investors and did not stipulate 
reciprocity requirements, except for the purchase of real estate pursuant to the Law on Basic Property 
Relations (FRY OG No. 29/96).  The Foreign Investme nt Law did not stipulate restrictions on foreign 
capital except for production or trade in arms and ammunition, which was subject to approval by the 
Ministry of Defence and could only be effected in  a joint venture with a local partner, and joint 
ventures in national parks or in "border districts", where the share of foreign ownership in the joint 
venture could not exceed 49 per cent.  Border distri cts were not determined precisely in the Law, but 
understood to be identical to the "frontier strip" defined in the Law on Crossing of the State Border 
and Movement in the Frontier Strip (RM OG No. 68/ 02) as territory within 100 metres of the State 
border of Montenegro on land, and within two miles of the boundary line at sea.  The Ministry of 
Defence was required to respond to a request to est ablish or invest in an enterprise producing or 
trading in arms and ammunition within 30 days of receipt, otherwise the application would be 
considered approved.  She confirmed that Mont enegro had no minimum capital requirements for 
foreign investors, and did not apply any differen tial pricing for utilities or transportation.   
21. All foreign investment in Montenegro should be  insured and registered with the Agency for 
Foreign Investments and Reconstruction of Econ omy (for statistical purposes).  Changes in the 
investment should also be notified to the Agency.  Foreign-owned enterprises registered with the 
Commercial Court in the same manner as domestic en terprises.  The Court in formed the Agency for  WT/ACC/SPEC/CGR/4 
 Page 7 
 
 
 Foreign Investments about the registration of foreig n investment.  Registration with the Agency was 
automatic and free of charge.   
22. Asked to describe the requirements for registering a daughter company of a foreign 
enterprise, the representative of Montenegro said that a foreign enterprise establishing a foreign 
company branch in Montenegro should submit documentation to the Central Registry of the 
Commercial Court within 30 days of the establishm ent, including the name and legal form of the 
parent company and the branch; the activities and addr ess of the branch; an auth enticated copy of the 
charter of the foreign enterprise and a certified transl ation of this document; a copy of the registration 
certificate of the foreign enterprise and an authenti cated document confirming the legal registration of 
the enterprise in its home State; identification of  the person(s) authorized to represent the company 
vis-à-vis  third parties and in legal proceedings as a company body or permanent representative; 
identification of a resident/residents authorized to  accept the service of legal proceedings on behalf of 
the company or any notice required to be served on the company; and the most recent balance sheet, 
profit and loss statement, or similar financial doc uments required by law in the home country.   
23. Concerning the expropriation of property, she noted that Article 45 of the Constitution of 
Montenegro (RM OG No. 48/92) provided that proper ty rights could only be revoked in the public 
interest as prescribed by law, and against compensat ion not less than the market value of the property.  
According to the Law on Expropriation (RM OG Nos. 55/00 and 28/06), the State authority in charge 
of property affairs effected the expropriation of real es tate in the public interest, as defined by law, or 
determined by the Government.  The Government was obliged to decide upon proposals to 
expropriate real estate by the State, a municipality, a State fund or a public company within 60 days of receipt.  The decision could be appealed to th e Supreme Court of Montenegro.  Expropriation 
decisions of the State authority in charge of prope rty affairs could be appealed to the second instance 
administrative authority, or referred to the competent court under the administrative disputes 
procedure.  Article 17 of the Constitution provided a ge neral right of appeal of all decisions affecting 
the rights or legal interests of any person.  An inter ested party could also request the court to consider 
compensation pursuant to the Law on Contracts a nd Torts (RM OG No. 44/99).  The Law on Foreign 
Investment stipulated specifically (Article 29) th at compensation should be no less than the market 
value plus interest calculated from the date of e xpropriation, and compensation for damages due to 
war or state of emergency should be no less than th at granted to domestic investors (Article 30).  
Foreign investors also had the right to be compen sated for damages caused by illegal or irregular 
conduct of government officials or agencies.   WT/ACC/SPEC/CGR/4 
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 24. Some Members noted that Montenegro was considering amending the Law on Foreign 
Investment inter alia  to strengthen the legal protection of investments and inquired about the 
anticipated timeframe for the completion of this wo rk.  The representative of Montenegro replied that 
Montenegro's Parliament had passed the Law on Amendments and Modifications of the Law on Foreign Investment on 29 May 2007 (RM OG No . 36/07).  The amendments had removed the 
restriction on foreign investment in restricted ar eas (national parks and "border districts").  The only 
restriction still in place concerned foreign investment  in production or trade in arms and ammunition 
(Article 7 of the Law – see paragraph [20] above). 
- State ownership and privatization  
25. The representative of Montenegro said that a pproximately 350 State-owned or "socially 
owned" companies had been subject to transforma tion and incorporation in the early 1990s pursuant 
to the Law on Ownership and Management Transformation (RM OG Nos. 2/92, 27/94 and 23/96).  
Employees in these enterprises had been granted 10 per cent of the shares free of charge, and been 
allowed to purchase additional shares (up to 30 pe r cent of the shares outstanding), offered at a 
discount and to be paid in instalments.  The re maining stakes had been transferred to three State-
owned funds – the Development Fund, the Pension Fund, and the Employment Fund.  Some 117 of 
these enterprises had subsequently been sold th rough various methods, including direct sale or 
auctions.  In eight sectors – mobile telecommuni cations, insurance, tourism, pharmaceuticals, food 
production, footwear and garments , regional water supply, and meta ls – privatization had been 
envisaged to be effected through the establishment of joint ventures.   
26. More than 200 enterprises (one quarter of the State-owned enterprises) had been privatized 
through Mass Voucher Privatization (MVP).  M ontenegro's adult population had received voucher 
points and given the choice to invest their points in individual enterprises or in six privatization funds 
(HLT Fund, Eurofond, Trend, Atlas Mont, Moneta and MIG).   
27. At present, privatization was governed by  the Law on Ownership and Management 
Transformation (RM OG Nos. 2/92, 17/92, 59/92, 4/93, 27/94, 30/94 and 23/96); the Law on Privatization of the Economy (RM OG Nos. 23/96, 6/99, 59/00 and 42/04); the Decision on Establishment and Structure of the Privatiza tion Council (RM OG Nos. 33/98, 24/99, 38/01, 48/03 
and 72/04); the Decree on Sale of Shar es and Company Assets by Public Auction 
(RM OG No. 20/04); the Decree on Sale of Shares and Company Assets by Public Tender (RM OG Nos. 08/99, 31/00, 14/03, 59/03 and 65/03); the Decree on Publishing, Acquiring and Use of Privatization Vouchers (RM OG Nos. 17/01, 37/01, and 11/02); the Decree on Dematerialization of 
Securities and Privatization Vouchers (RM OG Nos. 8/99 and 26/00); the Decree on the Mode of  WT/ACC/SPEC/CGR/4 
 Page 9 
 
 
 Implementing Employees' Rights to Free Shares (RM OG No. 24/99); the Law on Settling 
Obligations and Claims Related to Foreign De bt and Foreign Currency Saving Deposits of the 
Citizens (RM OG Nos. 55/03 and 11/04); the Law on Restitution of Property Rights and 
Compensation (RM OG No. 21/04); and the Law on Investment Funds (RM OG No. 49/04).  Privatization was carried out according to annual pl ans promulgated by her Government.  The plans 
were prepared by the Privatization Council, an agen cy established in 1998 to manage the privatization 
process.  The plans identified the en terprises to be privatized, the number of shares to be sold or, as 
appropriate, property nationalized after World War II to be returned to the rightful owners.   
28. The representative of Montenegro provided a Priv atization Report in May 2006, circulated in 
document WT/ACC/CGR/13.  The report described the privatization activities undertaken in 2005 and 
outlined the plan for 2006.  According to the repor t, among the 386 enterprises having had an element 
of State ownership in the past, 272 had been fully privatized as per December 2005.  Responding to 
requests for updates on progress in privatization in Montenegro, she provided information on the status at the end of 2006 (Tables 1 and 2).  Th e list comprised enterprises with majority State 
ownership (more than 50 per cent of the shares), where her Government maintained control like any 
other majority shareholder.  She confirmed that her Government did not retain control over the 
management in enterprises where it held a minority in terest.  Data on the percentage of the economy 
remaining under State control was not available, but  based on the estimated value of the enterprise 
capital, the percentage was less than 15 per cent.   
Table 1:  Enterprises to be privatized by public tender
 
No Company Activity Percentage of state capital 
for privatization 
Companies for which public tender is ongoing:  
1 "Termoelektrana Pljevlja" Energy se rvices Assets of "Elektroprivreda 
Crne Gore"AD, Nikši ć 
2 Center for relaxation, recreation and 
health therapy Igalo AD Relaxation, recreation and 
health therapy services 80.9642 
Companies to be sold by public tender: 
1 Institut "Dr Simo Miloševi ć"AD, Igalo Health services  
2 "Duvanski kombinat" AD, Podgo rica Tobacco industry 51.1046 
3 "Jadransko brodogradilište" AD, Bijela Shipbuilding 62.7090 
4 "Montepranzo-Bokaprodukt" AD, Tivat  75.0557 
5 HTP "Boka" AD, Herceg Novi Tourism services 59.3211 
6 "Optel" AD, Pljevlja Production of optic, 
electronic and microwave 
systems 53.2225 
7 "Poliex" AD, Berane  46.4052 
8 "Institut crne metalurgije" AD, Nikši ć Metallurgy 54.9732 
9 AD "Marina", Bar Tourism (nautical) services 51.3440 
10 "Barska plovidba", Bar Shipping company 51.2323 
11 DOO "Montenegro bonus", Cetinje Trade 100 WT/ACC/SPEC/CGR/4 
Page 10  
 
 No Company Activity Percentage of state capital 
for privatization 
Privatization strategies to be p repared and privatization commencing: 
1 HTP "Budvanska rivijera" AD, Budva Tourism services 58.7334 
2 "Elektroprivreda Crne Gore"AD, Nikši ć Energy services 67.6599 
3 "Plantaže" AD Podgorica Agriculture 54.2314 
4 "Željeznice Crne Gore" AD, Podg orica Railway transport 65.7465 
5 "Luka Bar"AD, Bar Transport services (port) 54.0527 
6 JP "Aerodromi Crne Gore", DOO 
Podgorica  Air transport infrastructure 
services 100 
7 "Montenegro airlines", DOO Podgorica Air transport 99 
 
 
Table 2: Companies to be privatized through auction  
No Company Activity % of capital for 
privatization 
1 Agrotransport Podgorica, Podgorica Transport services 66.0228% 
2 "Bisernica", Rožaje Trade 76.0296% 
3 Gross-market, Podgorica Trade 65.9345% 
4 Jugooceanija AD, Kotor Tran sport services 51.0184% 
5 Nibus AD, Niksic   Transport services 51.8795% 
6 Preduze će za izgradnju Podgorice AD, 
Podgorica Construction services 52.7915% 
7 Prehrana, Pljevlja Trade 72.8461% 
8 Prekookeanska plovidba, Bar Transport services 51.3441% 
9 AD "Riviera" , Kotor Production of cosmetic products  66.3139% 
10 AD "Uzor" Rožaje Tourism services 70.00045% 
11 Zimosport  AD, Žabljak Protection and production of 
medical equipment for convalescents and sportsmen 87.7823% 
Specific-purpose and forestry en terprises to be privatized: 
1 Šumarsko preduze će "Bijelo Polje" Wood industry 85.0740% 
2 Šumarsko preduze će AD "Danilovgrad" Wood industry 77.8203% 
3 Šumarsko preduze će "Kolašin" Wood industry 68.1091% 
4 Šumarsko preduze će "Pljevlja" AD Wood industry 81.8200% 
5 Šumarsko preduze će "Podgorica" AD Wood industry 75.0900% 
6 Šumarsko preduze će "Rožaje" AD Wood industry 70.0016% 
7 Šumarsko preduze će "Šavnik" AD Wood industry 60.3900% 
8 Šumarsko preduze će "Žabljak" Wood industry 82.5400% 
 
 
29. In response to specific questions, she said that no  restrictions were placed on the participation 
of foreign investors in the privatization process, other than those prescribed by the Law on Foreign 
Investment.  The Decree on Sale of Shares and Co mpany Assets by Public Auction and the Decree on 
Sale of Shares and Company Assets by Public Te nder both stipulated that any natural and legal 
person, whether domestic or foreign, had the right to participate in privatizati on tenders and auctions.   
30. The representative of Montenegro said that natu ral resources and public goods such as roads, 
parks and town squares were not to be privatized.    WT/ACC/SPEC/CGR/4 
 Page 11 
 
 
 - Pricing policies  
31. The representative of Montenegro said that the Law on Social Price Control 
(RM OG No. 45/90) had provided the authority for her Government to regulate prices in broad areas 
of the economy, including in the construction industry,  road transport, insurance, higher education and 
research, publishing (except local newspapers), broa dcasting, health care and social services, and 
banking.  The Law had also provi ded for government regulation of prices in order to stimulate 
agricultural production.  In addition, the Law had authorized intervention in response to significant 
price disturbance, or in case it was apparent that  economic policy objectives could not be met by any 
other means but price control.  However, despite the broad authority provided in the Law on Social Price Control, price controls had been applied fo r a limited number of goods and services such as 
medicines for human consumption, oil and oil deri vatives, postal services, and certain utility services 
(heating, water supply, garbage collection, public tr ansportation, etc.) subject to control by the local 
authorities.  The Law had been abolished in Febr uary 2006 pursuant to the Law on Abolishment of 
the Law on Social Price Control (RM OG No. 27/06).   
32. At present, prices were determined freely by the market in Monteneg ro except for certain 
medicines, oil and oil derivatives, and coal.  Ar ticle 6 of the Law on Medicines (RM OG No. 80/04) 
authorized her Government to set maximum prices for medicines.  She added that only medications 
reimbursable under the national health  scheme were subject to price control.  Pursuant to the Decree 
on Method of Establishment of Maximum Retail Prices of Oil De rivatives (RM OG Nos. 52/02, 55/02 
and 23/03), oil companies were obliged to observe ma ximum retail prices for oil derivatives.  All such 
products were imported.  The maximum prices were cost-based and adjusted to account for 
movements in world market prices; exchange rates; import duties, fees and taxes; distribution, handling and storage costs; operating margins; etc.   For coal, the price controls applied only to 
domestically-produced coal delivered to the electric  power plant Pljevlja.  The measure was applied 
on the basis of the Law on Energy (RM OG No. 39/03), which envisaged complete deregulation of 
coal prices after a period of maximum five years fo llowing the passage of the La w.  Coal destined for 
other users or purposes was not subject to price regul ation.  The power plant Pljevlja was authorized 
to purchase imported coal at market prices, but in pr actice the plant based its needs on local coal.  The 
Law on Telecommunications (RM OG No. 59/00) ha d established a regulatory Agency for 
Telecommunications which was responsible for price controls, if any, on telecommunication services.  
The abolition of the Law on Social Price Control ha d eliminated the authority to establish prices for 
agricultural products.   WT/ACC/SPEC/CGR/4 
Page 12  
 
 33. The representative of Montenegro said that importers and wholesalers of cigarettes and other 
tobacco products determined the retail price and notified the administrative authority.   
34. Noting that the Law on Social Price Control had been abolished but that the Government of 
Montenegro had retained the authority to regulat e the prices for some items, some Members asked 
how Montenegro would ensure that its price contro ls would not be applied in a prejudicial manner, 
consistent with Article III:9 of the GATT 1994.   
35. The representative of Montenegro replied th at the price regulations applied by her 
Government did not discriminate between imported and domestically-produced goods.  Both the coal 
mine and the power plant at Pljevlja were undergoing  privatization and might possibly be sold to the 
same owner.  No further price controls would be  maintained on coal once the privatization process 
had been completed for the two enterprises.  She added that a Regulation on the Criteria for 
Determining Maximum Prices of Medicines (RM OG No. 50/07), which detailed the price regulations 
on medicines and included a list of price-controlled medications, had been adopted in July 2007.   
- Competition policy 
36. The representative of Montenegro said that the FRY Antimonopoly Law (FRY OG 
No. 29/96) – technically in force in Montenegro, bu t never applied in practice – had been superseded 
by the Competition Law (RM OG No. 69/05) enacted  in November 2005.  The new Law had been 
modelled on Articles 81, 82 and 86 of the Treaty on European Union; EC Regulations Nos. 2790/1999, 139/2004 and 17/62; and European Commission Decrees (OJ C 372/1997 and 
OJ C 368/2001).   
37. The Competition Law foresaw the establishment of an independent Competition Protection 
Agency responsible for the development of re gulations furthering competition as well as the 
enforcement of Montenegro's competition legisla tion.  She estimated the annual budgetary expense 
for the enforcement of the Law to be approximately  €100,000.  The Agency would be entrusted with 
merger control and investigations of acts infringing on competition, defined in the Law as abuse of 
dominant position and agreements preventing, restric ting or impairing competition in circumstances 
other than those accepted under the Law (e.g. agre ements contributing to the improvement of 
production or distribution, or to the stimulation of technical or economic development).  The Law 
stipulated strict penalties for violations against th e rules on competition.  The decisions of the Agency 
were final and could not be cha llenged directly in the Administrative Court of the Republic of 
Montenegro.    WT/ACC/SPEC/CGR/4 
 Page 13 
 
 
 38. Asked to provide an updated list of compan ies having production, trade or internal 
distribution monopolies in Montenegro, she said th at Montenegro had no such enterprises.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of executive, legislative and judicial branches of government 
39. The representative of Montenegro said that M ontenegro's parliamentary democracy was based 
on the principle of separation of powers between th e legislative, executive and judicial branches of 
government.  The President of the Republic, representing the State, was elected directly for a five-
year term.  The President nominated the Prime Minister, proposed the president and judges of the Constitutional Court, and signed promul gations declaring laws.  The role of the Prime Minister was to 
constitute the Government.   
40. Parliament was the supreme legislative body, composed of 81 members chosen by direct 
ballot every four years.  Parliament enacted th e Constitution, the laws and legal acts; provided 
authentic interpretation of the laws; adopted the budget and annual balance shee t; ratified international 
agreements; elected and dismissed the President and Vice President of the Parliament from within its own members; and confirmed the Prime Minister, ministers, justices and presidents of the 
Constitutional Court and the Supreme Court, and the St ate Prosecutor.  Montenegro's Parliament also 
decided on membership in international organizati ons based on proposals of the President.  Laws 
passed by Parliament were declared by promulgation signed by the President.  Should the President refuse to sign a promulgation declaring a law, then Parliament would be obliged to re-examine the 
law.   
41. The Rules of Procedure of the Parliame nt (Articles 157 to 159) implemented the 
constitutional provision establishing that Parliament could provide authentic interpretation of the 
laws.  A request for an authentic interpretation of a law was submitted to the President of the 
Parliament, who conveyed it to the members of Pa rliament and the Constitutional and Legislative 
Committee.  The Constitutional and Legislative Co mmittee drafted an authentic interpretation and 
presented it to Parliament.  If the Constitutional a nd Legislative Committee did not find the request 
for an authentic interpretation justified, a report would be submitted to Par liament, which decided on 
the matter.  An authentic interpretation of a law was binding.  WTO-related legislation enacted by 
Parliament was, in principle, open to authentic in terpretation.  However, international agreements 
ratified by Montenegro became part of the internal  legal system and could not be changed by law.  
Thus, any authentic interpretation of WTO-related laws enacted by Parliament would have to take 
note of the respective WTO Agreements, and obser ve the requirements of such Agreements.   WT/ACC/SPEC/CGR/4 
Page 14  
 
 42. Concerning the procedure for ratification of Montenegro's Protocol of Accession, the 
representative of Montenegro said that the Ministry of Economic Development would prepare a draft 
Law on Ratification of the Marrakesh Agreemen t Establishing the World Trade Organization 
(including Annexes 1, 2 and 3) in cooperation with the Ministry of Foreign Affairs.  The draft law 
would be submitted to her Governme nt for approval, and then forwarded to Parliament for passage.  
Upon adoption of the Law on Ratification, the Presi dent of Montenegro would sign a Proclamation 
for the law, which would be published in the Offici al Gazette.  Following publication, the Ministry of 
Foreign Affairs would prepare an instrument on accession in compliance with Article XII:1 of the Agreement Establishing the World Trade Organization.  The procedure for ratification of international 
agreements normally took about two months.   
43. Parliament confirmed the Government by majority  vote at the proposal of the Prime Minister 
and based on the program of the prospective gove rnment.  The Government was accountable to 
Parliament in implementing laws and other regulations passed by Parliament.  The Government proposed laws, the State budget and other regulations for adoption by Parliament, and adopted decrees 
and other regulations necessary for execution of the laws.  Ministries worked independently in their 
areas of jurisdiction within the framework provi ded by the Constitution and the laws, and were 
accountable to the Government.  The present Govern ment consisted of a Prime Minister, two Vice-
Prime Ministers, and 13 Ministers (Maritime Affairs, Transportation and Telecommunication; Tourism and Environmental Protection; Finance; Foreign Affairs; Culture, Sports and Media; 
Defence; Agriculture, Forestry and Water Manageme nt; Justice; Education and Science; Interior 
Affairs and Public Administration; Economic Development; Protection of Human and Minority 
Rights; and Health, Labour and Social Welfare).   
44. The Ministry of Economic Development was th e principal government entity responsible for 
formulating and implementing policies relating to fo reign trade.  The Ministry was responsible for 
negotiating and coordinating the implementation of international treaties and the coordination of 
relations with international economic  institutions.  In carrying out its tasks, the Ministry of Economic 
Development cooperated with the Ministries of  Finance; Agriculture, Forestry and Water 
Management; and other ministries.  The foreign trad e policy was formulated in close cooperation with 
the Ministry of Finance, which was also responsib le for cooperation with th e international financial 
institutions.  The Ministry of Finance proposed  the Law on Customs Tariff.  The Ministry of 
Agriculture, Forestry and Water Management was in charge of enacting SPS measures related to 
exportation and importation of agricultural goods.  The Ministry of Economic Development was 
responsible for enacting substantive laws with respect to standards and technical regulations,  WT/ACC/SPEC/CGR/4 
 Page 15 
 
 
 measures and precious metals, and intellectual propert y.  The Secretary for European Integration was  
responsible for relations with the European Union. 
45. Judicial authority was vested in the courts .  The Constitutional Court assessed the compliance 
of legal acts with the Constitution.  If the Constituti onal Court determined a law or other legal act to 
be inconsistent with the Constitution, then the act (or some of its provisions) would cease to be 
effective on the day the Constitutional Court passed the decision.  The Law on Courts 
(RM OG Nos. 5/02 and 49/04) elaborated in detail the proceeding before the Constitutional Court.  
The Supreme Court was the highest court in Montenegro, providing uniformity in the implementation of laws by all courts.  The present judicial system recognized specialized courts such as administrative and commercial courts.  The appellate  courts decided on appeals against decisions of the lower courts, 
delineated the competencies of the lower courts , and other matters determined by the law. 
46. The Constitution guaranteed a general right of a ppeal against individual legal action brought 
in a court or an administrative procedure.  This constitutional principle had been implemented in the 
Law on Criminal Procedure (RM OG Nos. 71/03, 7/04 and 47/06), the Law on Civil Procedure (RM OG Nos. 22/04, 28/05 and 76/06) and the Law on General Administrative Procedure 
(RM OG No. 60/03).  Administrative appeals of customs and other government decisions on issues 
covered by WTO Agreements were conducted under the general rules for appeal provided in the Law 
on Administrative Procedure.  The Supreme Court had appellate jurisdiction only.  The Supreme 
Court decided as the third instance authority in certain cases.  Decisions of a higher court, acting as a 
court of first instance, could be appealed to the Supreme Court.   
- Authority of sub-central governments 
47. The representative of Montenegro said that sub- central entities had no competencies in areas 
related to WTO rules.  A violation of WTO rules by a local authority would be corrected by the 
responsible ministry or by her Government.  Local  governments had no direct role in foreign trade 
operations and foreign economic re lations, nor with respect to ta xation applicable to imports, 
subsidies, or investments.   
48. Article 6 of the Law on Local Self-Government Financing (RM OG Nos. 42/03, 44/03 and 
05/08) allowed municipalities to collect a surtax on the personal income tax, a tax on real estate, 
a consumption tax, a tax on vacant construction la nd, a tax on company name , and a local tax on the 
consumption of alcoholic and non-al coholic beverages.  The Ministry of Finance was responsible for 
the collection of all taxes through the Tax Administ ration and for the correct implementation of all tax WT/ACC/SPEC/CGR/4 
Page 16  
 
 laws.  The Ministry of Finance therefore had s upervisory authority over all taxes applied by the 
municipalities.   
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading rights 
49. The representative of Montenegro said that regi stration was required to carry out business 
activity, including foreign trade, in Monteneg ro.  The Foreign Trade Law (RM OG No. 28/04) 
regulated the import and export activities conducted by natural and legal persons .  Registrations could 
be made for individual entrepreneurs, limited lia bility partnerships, and joint-stock companies.  
Enterprises wishing to engage in foreign trade ha d to register at the Central Register of the 
Commercial Court, and obtain a statistical numbe r from Montenegro's Bureau of Statistics and a 
customs number for the settlement of import du ties and other customs payments.  The Law on 
Business Entities (RM OG No. 06/02) had simplifie d the company registration process significantly.  
A business entity was now deemed registered unless the Central Register of the Commercial Court rejected the registration documentation within four  days of receipt.  The proposed line of business 
should be indicated at the time of registration.  Ho wever, entities wishing to engage in foreign trade 
would not need to specify the products to be impor ted or exported.  The registration at Customs was 
automatic against payment of €10, and the Customs Administration imposed no additional 
requirements on firms engaging in importation or exportation relative to firms performing other 
commercial activities.  He confirmed that business entities were not required to have a physical 
presence in Montenegro in order to register at th e Commercial Court, the Bureau of Statistics or the 
Customs; they could be represented by an attorney. 
50. Registration as a limited partnership required a st atement or contract signed by all partners 
including the name and address of the partnership and confirmation that it had been established as a limited liability partnership, the commencement and duration of the partnership, the full name and ID 
number of each partner, the name of each limited liability partner, the share of each partner, and a 
statement whether the share consisted of money or any other form of capital.  A joint-stock company 
should submit the contract establishing the company; its statutes; details about its Board of Directors 
(names, place and date of birth, ID numbers, citizenship, address or  place of residence, occupation, 
membership in other boards); name and address of the executive director, company secretary and 
auditor; company name and headquarter address; statements accepting and confirming the functions 
to which they had been appointed, signed by all board members, the executive director, company 
secretary and auditor, and a receipt for payment of the administrative fee.  Provided all the necessary 
documentation was completed, the Central Register could only refuse the application if another entity  WT/ACC/SPEC/CGR/4 
 Page 17 
 
 
 had already registered under the same name or th e application clearly violated another regulation 
(e.g. trading in narcotics).  The Central Register required an annual registration fee of €50 for joint-
stock companies; €10 for entrepreneurships, part nerships, limited liability partnerships; and €1 for 
renewal of the registration.  The Law on Business Entities prescribed a minimum capital requirement 
of €25,000 for joint-stock companies, while th e minimum capital needed for a limited liability 
company was €1.  No minimum capital was required for entrepreneurs or partnerships.   
51. Individuals could register with the Central Regi stry as entrepreneurs, which provided the right 
to import for retail purposes and engage in retail tr ade.  The signed application form should contain 
information such as the full name of the entreprene ur and of the entity (if different); his/her ID 
number and address; and a description of the activity to be undertaken.  A foreign individual could 
also register as entrepreneur, but would need to be a resident and physically present in Montenegro in 
order to so.  Entrepreneurs had the right to import and distribute products at the wholesale level.  
Natural persons not registered as entrepreneurs c ould only import goods for their own use or for the 
use of their families.   
52. She added that importers, manufacturers, wholesalers and retailers in seeds and planting 
materials were required to be inscribed in regi sters pursuant to the Law on Seeds and the Law on 
Planting Material.   
53. The representative of Montenegro said that Mont enegro also required a licence to engage in 
certain types of activity, notably for tobacco, me dicines and medical devices, narcotics and poisons, 
as well as in order to operate facilities, networks and equipment for the generation, transmission, 
distribution, supply and sale of energy.  The Energy Regulatory Agency issued licenses pursuant to the Law on Energy, taking into account various c onditions and criteria including the protection of 
public health, safety and the environment; energy effi ciency and conservation; the nature of source of 
energy; and the technical, economic and financial capability of the applicant.  Any foreign or 
domestic entity could apply for a licence.   
54. The Law on Tobacco (RM OG No. 80/04) require d importers, exporters and entities engaged 
in transit of tobacco and tobacco products to be re gistered with the competent administrative authority 
(the Agency for Tobacco).  Activity licenses were  needed for manufacturing, wholesale trade, and 
retail trade in tobacco and tobacco products.  Th e Agency for Tobacco deliv ered the licence within 
30 days of receipt of the application.  Enterprises or entrepreneurs wishing to make tobacco products 
should demonstrate the capability to undertake all stages of the production process from the 
preparation of tobacco to the p ackaging of the final products; the capacity to produce a full range of 
tobacco products - and a minimum of 1.5 billio n cigarettes annually; and possess suitable production WT/ACC/SPEC/CGR/4 
Page 18  
 
 premises including laboratories and a skilled workfo rce.  Tobacco manufacturers were required to 
provide annual production estimates.  She noted th at the Law on Tobacco had been amended to 
abolish the requirement that tobacco manufacturers purchase or produce minimum 40 per cent of their 
tobacco input locally.  The comp etent administrative authority determined compliance with the 
requirements, and the licenses were awarded – through public tender – by the Ministry of Agriculture, 
Forestry and Water Management and the Ministry of  Health.  An enterprise or entrepreneur no longer 
satisfying these requirements would have his/her licence revoked.   
55. Enterprises or entrepreneurs granted licenses fo r wholesale trade in tobacco products were 
entered in the Register of Tobacco Product Wholesalers.   Applicants were required to have at their 
disposal sufficient storage capacity (for minimum 30 tons of cigarettes and other items), visibly 
marked transportation means to supply retailers, and to submit a preliminary Agreement with a 
registered manufacturer or importer to supply tobacco products.  The wholesale licence fee amounted 
to €150,000 for a five-year period, or €30,000 for t obacco products other than cigarettes.  The fee 
could be paid in five equal annual instalments.  W holesalers were only authorized to sell to registered 
retailers.  The licence could be re voked for failure to pay the instal ment of the fee, if the licence 
holder or his/her representative engage d in illegal trade in cigarettes or other tobacco articles, or if the 
other requirements above were  no longer fulfilled.   
56. The activity licence for retail tr ade in tobacco products was valid for two years and issued 
against payment of €100 per sales outlet.  Applican ts were required to possess facilities satisfying 
sanitary, health and other conditions in accordance  with the Law on Sanitary Control; have no 
outstanding fiscal obligations; and to submit the pr eliminary Agreement with a wholesale supplier.  
Licenses could not be granted to persons convicted of illegal trade in cigarettes and other tobacco 
goods during the three-year period preceding the appli cation.  The administrative authority decided on 
the licence application within 30 days.   
57. Pursuant to the Law on Medicines (RM OG No. 80/04), a licence was required to be involved 
in the "circulation" (i.e. including importation or  exportation) of medicines.  The responsible 
administrative authority - the Ministry of Hea lth - could only issue licenses to legal persons 
established within the territory of Montenegro.  The requirement to be est ablished in Montenegro 
applied to both domestic and fo reign persons and aimed at ensu ring that commercial operators 
wishing to trade in medicines were adequately sta ffed and equipped to distribute and warehouse such 
goods.  Foreign and domestic legal pe rsons licensed for wholesale trade in medicines were subject to 
the same conditions with respect to facilities, skilled employees, and recordkeeping.  Licence 
applications were processed within 90 days.  Th e licenses were valid indefinitely, but could be  WT/ACC/SPEC/CGR/4 
 Page 19 
 
 
 revoked for cause.  Trade was limited to medicin es with a trade authorization, except when the 
regulatory agency issued approvals for shipments of specific medicines.   
58. The Law on Production and Circulation of Narc otics (FRY OG Nos. 46/96 and 37/02) 
required legal entities to be registered for the produc tion and circulation of psychotropic substances to 
engage in import and export of these items.  Le gal entities registered for wholesale production of 
medicines could import and export medicines cont aining psychotropic substances.  The Law on 
Production and Circulation of Pois onous Substances (FRY OG Nos.  15/95, 28/96 and 37/02) obliged 
legal entities and entrepreneurs to register with the Mi nistry of Health in order to import, export, sell 
or store poisonous substances.  Carriers of poisonous substances were required to register with the 
Ministry of Transportation.  Approvals to trade in  poisonous substances were issued by the sanitary 
inspection of the Republic for wholesalers, and by the municipal sanitary inspection for retailers.  
According to the Law on Plant Protection (FRY  OG Nos. 24/98 and 26/98), only legal persons 
registered with the Commercial Court could import pesticides.  Activity licenses were also foreseen 
for fertilizer under the new Law on Fertilizer (RM OG No. 48/07) and for pesticides in the draft law 
on pesticides.  She confirmed that licenses would be  available to non-residents under these new laws. 
59. Some Members expressed concern about Mont enegro's regime governing trading rights, 
recalling that the right to import (and export) produc ts without establishing a subsidiary or physical 
presence was a fundamental principle of the WTO.  Whether such a requirement applied "equally" to 
domestic and foreign suppliers wa s of no consequence as domestic suppliers, by definition, would 
have an established presence in Montenegro whereas foreign suppliers would not.  The establishment 
requirement was an unnecessary obstacle to impor tation, and it would be a violation of GATT 
Articles III and XI to require an investment in orde r to be allowed to import.  The higher charge 
applied to renew an expired licence relative to  an unexpired licence also appeared unjustified 
according to GATT Article VIII.  While appreciating the need to protect consumers, some Members 
failed to understand how a requirement  for foreign pharmaceutical companies to establish a subsidiary 
in Montenegro in order to import, would further this  objective.  In any case, the measure restricted the 
right to trade imported pharmaceutical goods in violat ion of Articles III and  XI:1 of the GATT 1994.  
A Member also questioned the rationale behind th e measure prohibiting individual entrepreneurs to 
import for wholesale trade. 
60. The representative of Montenegro replied that Montenegro was aware of the problem posed 
by the requirement to be established in Monten egro to import or export and would amend the 
Customs Law appropriately.  The amendments, whic h had been approved by the Government and 
were pending passage by Parliament, eliminated th e establishment requirement for both legal and WT/ACC/SPEC/CGR/4 
Page 20  
 
 natural persons wising to engage in  import and export activities, and provided for the right of persons 
not established in Montenegro to participate in a ll customs procedures, including import and export, 
in full conformity with GATT Articles III and XI.  Registration at Customs was not required in order 
to import, but importers/exporters ha d to be represented by an agent in Montenegro.  Legislation on 
medicines would be also amended to make Montenegro's activity licensing regime for medicines compliant with GATT Articles III and XI.  The ame ndments had been approved by the Government 
and were awaiting passage by Parliament.  Persons not established in Monten egro would be allowed 
to import medicines and deliver them to a wholesal er in Montenegro.  However, such persons would 
not have the right to distribute or sell them in any other way in Montenegro.  As for the prohibition against individual entrepreneurs to import for whol esale trade, it would be eliminated under the draft 
Law on (Internal) Trade which had been approved by the Government and was not pending passage 
by Parliament.   
A. IMPORT REGULATIONS 
- Ordinary customs duties  
61. The representative of Montenegro said that a new Law on Customs Tariff had been enacted 
on 7 December 2005.  The new Law had entered in to force on 1 January 2006, replacing the Decree 
on Customs Tariff (RM OG, Nos. 47/03 and 25/05).  The Law, based on HS 2002 with changes agreed in 2004, conformed to the nomenclature of the EU at the eight-digit level.  The applied tariff rates ranged from 0 to 30 per cent ad valorem .  Compound duties were levied on some agricultural 
goods.  She added that a new Law on Amendments and Modifications of the Law on Customs Tariff 
(RM OG No. 17/07) had been enacted in March 2007.   Pursuant to the Decree on the Harmonization 
of the Customs Tariff Nomenclature for the Year 2008, adopted on 20 December 2007, the new 
customs tariff based on HS 2007 comprised 9,767 tariff lines at the 10-digit level.   
62. Seasonal duties were applied on certain fruit a nd vegetables (Table 3) pursuant to the new 
Law on Customs Tariff – the Decision on Seasonal Cu stoms Duties on Import of Certain Agricultural 
Products had been abolished with the entry into force of the Law in January 2006.  Seasonal duties 
were an integral part of Montenegro's customs ta riff.  She stated that any seasonal duties applied in 
the future by Montenegro as a WTO Member woul d be within the bound rates negotiated during the 
accession process.    WT/ACC/SPEC/CGR/4 
 Page 21 
 
 
 Table 3: Seasonal duties  
HS 2007  Description            
0701 Potatoes, fresh or chilled: 
0701 90 -  Other: 
0701 90 50 00 - - -  New (From 1  January to 30  June ) 
0702 00 00 Tomatoes, fresh or chilled 
0702 00 00 10 ex. From 1 April to 31 August) 
0707 00 Cucumbers and gherkins, fresh or chilled: 
0707 00 05 10 - - ex. 01.04.- 30.06. 
0707 00 90 - Gherkins: 
0707 00 90 10 - -  ex.01.09 - 31.10.  
0805 Citrus fruit, fresh or dried: 
0805 20 - Mandarins (including tangerines and satsum as); clementines, wilkings and  similar 
citrus hybrids: 
0805 20 10 10 - -  ex. 01.10. – 31.12.    
0805 20 30 10 - -  ex. 01.10. – 31.12.    
0805 20 50 10 - -  ex. 01.10. – 31.12.    
0805 20 70 10 - -  ex. 01.10. – 31.12.    
0805 20 90 10 - -  ex. 01.10. – 31.12.    
0806 Grapes, fresh or dried: 
0806 10 - Fresh: 
0806 10 10 10 - -  ex. 01.07. – 30.09.    
0806 10 90 10 - -  ex. 01.07. – 30.09.    
0807 Melons (including watermelons) and papaws (papayas), fresh: 
0807 11 00 - - Watermelons:      
0807 11 00 10 - -  ex. 01.07. – 30.09.    
0808 Apples, pears and quinces, fresh: 
0808 10 - Apples: 
0808 10 10 00 - - Cider apples, in bulk, from 16 September to 15 December    
0808 20 - Pears and quinces: 
  - - Pears: 
0808 20 10 00 - - - Perry pears, in bulk, fro m 1 August to 31 December  
0809 Apricots, cherries, peaches (including nectarines), plums and sloes, fresh: 
0809 30 - Peaches, including nectarines: 
0809 30 90 10 - -  ex. 01.06. – 30.08.  
0810 Other fruit, fresh: 
0810 50 00 - Kiwifruit:                
0810 50 00 10 - -  ex. 01.11. – 31.03.    
 
[Montenegro submitted its in itial offer on goods in  June 2006 (WT/ACC/SPEC/C GR/3).  The most recent 
revised offer is dated January 2008.  The initial offer and  the first revision are in HS 2002, the most recent 
offers are in HS 2007.  The tariff rates applied by Montenegro (in HS 1996) can be obtained from the Secretariat (see notice in WT/ACC/CGR/6/Add.1).] 
 WT/ACC/SPEC/CGR/4 
Page 22  
 
 - Other duties and charges  
63. The representative of Montenegro said that an additional levy had been imposed on 124 tariff 
lines pursuant to the Decree on Special Charge on Importation of Agricultural and Food Products 
(RM OG Nos. 61/03 and 63/03).  The Decree had been  abolished with the entry into force of the Law 
on Customs Tariff in January 2006.  She acknowledged that the "special charge" had been maintained 
to protect domestic production and thus had not cons tituted a charge or fee for services rendered.  She 
added that the "special charge" had been converted  to a specific element in the compound duty rates, 
applied to 311 agricultural tariff lines pursuant to the Law on Customs Tariff, as amended in 
March 2007.   
- Tariff rate quotas, tariff exemptions  
64. The representative of Montenegro said that Mont enegro did not apply tariff rate quotas except 
in the context of the free trade agreements w ith Albania, Croatia, and Moldova.  Information 
concerning the tariff rate quotas established for "sen sitive" agricultural products was provided in 
document WT/ACC/CGR/3/Add.1, Annex 9.   
65. The representative of Montenegro said that th e procedure for obtaining tariff exemptions was 
laid down in the Decree on Procedure for Rea lization of Rights on Customs Duty Exemption 
(RM OG No. 22/03).  Article 184 of the Customs Law (RM OG Nos.7/02, 38/02, 72/02, 21/03 and 31/03) provided for tariff exemptions for (i) goods specified by an international Agreement (i.e. FTA) 
binding on Montenegro; (ii) travellers' luggage containing goods of a value not exceeding €150; 
(iii) exchanges of goods of non-commercial nature (n o payment) between natural persons; (iv) medals 
and awards at international events, presents as pa rt of international relations; (v) goods brought into 
Montenegro as humanitarian assistance, to be distributed free of charge; (vi) equipment for the use of 
humanitarian organizations or handicapped people; (viii) goods satisfying "b asic human necessities" 
(e.g. food, medications, clothes, and bed linen); and (ix) trademarks, pa tents, designs, supporting 
documents, and application forms forwarded for the registration of copyright and industrial property 
rights.  Exempt were also application forms and documents submitted to the State authorities, materials representing evidence in courts and other proceedings, printed material exchanged between 
public institutions and banks, securities, submis sions to international contests organized in 
Montenegro, official trade documents, and letter mail.   
66. Montenegro also accorded tariff exemptions fo r fire-prevention and fire-fighting equipment; 
goods inherited by residents of Montenegro; im ports for the reconstruction, maintenance and 
restoration of protected cultural monuments, approved by the competent authority; goods to be used in  WT/ACC/SPEC/CGR/4 
 Page 23 
 
 
 museums, archives, restoration, lite rary activities, art, theatre and musicals, and filming activities 
(subject to the approval of the competent authorit y); goods donated to cultura l institutions and other 
non-profit cultural activity upon approval of the co mpetent authority; goods brought by scientists, 
writers and artists as own works; equipment not produced in Montenegro imported by State authorities; and investment goods brought into Mo ntenegro by a foreign party in accordance with 
relevant legislation.  Montenegrin citizens living in the "frontier strip", i.e. within 100 metres of the 
State border, and owning plots of land in the "frontier strip" of Montenegro's neighbours were able to 
bring into Montenegro the agricultural, forestry or fi shing yields from these plots free of import duty.  
Goods falling under this pr ovision - established to facilitate the movement of people and goods in 
border areas - were intended for personal use and not for the general stream of commerce.  The catches of sea-going fishing vessels of Montenegro  were exempt pursuant to Article 188 of the 
Customs Law.  Article 185 provided an exemp tion, upon request, for domestic goods exported and 
subsequently returned in the same state to the customs territory of Montenegro within two years.   
- Fees and charges for services rendered 
67. The representative of Montenegro said that Article 291 of the Customs Law 
(RM OG Nos. 07/02, 38/02, 72/02 and 21/03) allowed the customs administration to charge a fee for 
customs clearance.  The fee could be a specific amount or ad valorem.   Depending on the procedure 
applied, the customs clearance fee ranged from 0 to 1 per cent ad valorem,  or €3 to €120, according to 
the Decree on Amount and Procedure of Charging of Fees for Services Rendered by the Customs 
Authorities (RM OG Nos. 20/03 and 62/04).   
68. Customs also applied charges for specific servi ces such as temporary storage and storage of 
goods at customs (€20 per declaration), issuing opi nions on the classification of goods (€100 or €120 
depending on the need for testing), and assessment s of the origin of goods (€50).  The Law on 
Administrative Fees (RM OG Nos. 55/03 and 46/04) determined a number of administrative charges 
related to importation or exportation, notably for documentation and certificates arising from 
veterinary, sanitary, and phytosanitary inspecti ons; customs forms, declarations, controls, 
classifications, complaints; and for the issuance of import and export licenses.  The fees, which were all stipulated in specific amounts, are listed in Table 4.   Certificates of origin (Form A) were issued by 
the Chamber of Commerce against payment of €8.   
69. Quality controls on imported or exported agricultu ral and food products were effected against 
a fee of €4.60 for shipments of up to 20 tons, and €0.30 for every additional ton, according to the 
Decision on the Level and Method of Paying Fees C overing Costs of Quality Control of Agriculture 
and Food Products and Products Ma de Thereof Destined for Export or Import (FRY OG Nos. 62/97 WT/ACC/SPEC/CGR/4 
Page 24  
 
 and 55/98).  Charges had also been established acco rding to the Decree on Fee Charged for Health 
Inspection of Plant Shipments and Control of Pe sticides and Fertilizers in Traffic Through the 
Territory of FRY (FRY OG No. 71/00), and the Decision on Fee Charged for Veterinary-Sanitary 
Control of Animals, Products, Raw Materials and Waste of Animal Origin in Production and Traffic 
(RM OG Nos. 51/03 and 56/03).  The veterinary-sanitary fee varied from 0.06 to 1 per cent ad valorem .   
70. Some Members noted that Montenegro applied ad valorem  charges for customs clearance and 
for veterinary-sanitary controls, a nd recalled that fees and charges not related to a specific service or 
assessed on an ad valorem  basis were WTO-inconsistent, as such fees were required to approximate 
the cost of services rendered, and not to be based on the value of the good assessed, or applied for the 
purpose of raising revenue for general purposes.  Mont enegro was requested to confirm that it would 
eliminate fees not meeting the requirements of Ar ticle VIII of the GATT 1994, or revise the fees to 
bring them into conformity with WTO rules.   
71. In reply, the representative of Montenegro said that her Government was aware of the issue 
and that all non-conforming fees we re being amended to be fully compliant with GATT Article VIII 
prior to the date of accession.  The veterinary- sanitary fee had been amended through the Decision on 
the Level of Compensation for Veterinary-Sanitary Control in the Trade Across the Border of the 
Republic of Montenegro (RM OG No. 50/05); the customs clearance fee had been amended in 
October 2006 pursuant to the Law on Amendmen ts and Modifications of the Customs Law 
(RM OG No. 66/06); and a Decree on the Amount and Procedure for Charging Fees for Services 
Rendered by the Customs Authorities, which set fixed amounts for fees reflecting the approximate costs of services rendered, had been adopted in December 2006 (RM OG No. 04/07). 
- Application of internal taxes to imports 
72. The representative of Montenegro said that al cohol and alcoholic beverages, tobacco, and 
mineral oils, derivatives and substitutes were subject ed to excise tax according to the Law on Excise 
Tax (RM OG Nos. 65/01, 12/02 and 76/05) of 28 December 2001.  The products concerned and the 
respective rates are listed in Table 5.  Excise taxes on imports were collected at the time of 
importation by the customs authorities, whereas th e tax authorities collected the tax on domestically-
produced goods when the goods were released for free circulation.  Ex cise taxes were not collected on 
exports.  Following Montenegro's independence in J une 2006, the special taxation regime applied in 
trade with Serbia had been eliminated.  Goods im ported from Serbia were now subject to excise taxes 
as any other imported good and goods  exported to Serbia were exempt from any such taxes.  She  WT/ACC/SPEC/CGR/4 
 Page 25 
 
 
 added that natural persons making small quantities of alcoholic bevera ges solely for personal use were 
exempt from the excise tax.   
Table 5:  Products Subject to Excise Tax  
Tariff number Product name Tax rate 
Alcohol and alcoholic beverages 
2203.00 01 00, 2203.00 09 00, 2203.00 10 00 Beer €1.90 per alcoholic volume content 
per one hectolitre of beer 
2204.10 11 00, 2204.10 19 00, 2204.10 91 00 2204.10 99 00 €35 per hectolitre  
2204.21, 2204.29 Wines 
€0 per hectolitre 
2204.30 10 00, 2204.30 92 00, 2204.30 94 00, 
2204.30 96 00, 2204.30 98 00, 2205.10 10 00, 
2205.10 90 00, 2205.90 10 00, 2205.90 90 00, 
2206.00 10 00, 2206.00 31 00, 2206.39 00 00, 
2206.00 51 00, 2206.00 59 00, 2206.00 81 00, 
2206.00 89 00 Other fermented beverages and 
light alcoholic beverages 1)  with alcohol content between 
1.2% vol and 10% vol, or  
between 10% vol and 15% vol 
- €40 per hectolitre 
2)  with alcohol content between 
1.2% vol and 22% vol) – €70 
per hectolitre of medium 
alcohol. beverages; 
3)  with alcohol content more than 
22% vol - €550 per hectolitre 
2207.10 00 00, 2207.20 00 00, 2208.20 12 00, 
2208.20 14 00, 2208.20 26 00, 2208.20 27 00, 
2208.20 29 10, 2208.20 29 20, 2208.20 29 30, 
2208.20 29 90, 2208.20 40 00, 2208.20 62 00, 
2208.20 64 00, 2208.20 86 00, 2208.20 87 00, 
2208.20 89 10, 2208.20 89 20, 2208.20 89 30, 
2208.20 89 90, 2208.30 11 00, 2208.30 19 00, 
2208.30 32 00, 2208.30 38 00, 2208.30 52 00, 
2208.30 58 00, 2208.30 72 00, 2208.30 78 00, 
2208.30 82 00, 2208.30 88 00, 2208.40 11 00, 
2208.40 31 00, 2208.40 39 00, 2208.40 51 00, 
2208.40 91 00, 2208.40 99 00, 2208.50 11 00, 
2208.50 19 00, 2208.50 91 00, 2208.50 99 00, 2208.60 11 00, 2208.60 19 00, 2208.60 91 00, 
2208.60 99 00, 2208.70 10 00, 2208.70 19 00, 
2208.80 90 00, 2208.90 19 00, 2208.90 91 00, 
2208.90 33 00, 2208.90 38 00, 2208.90 41 00, 
2208.90 45 00, 2208.90 48 00, 2208.90 52 00, 
2208.90 54 00, 2208.90 56 00, 2208.90 69 00, 
2208.90 71 00, 2208.90 75 00, 2208.90 77 00, 
2208.90 78 00, 2208.90 91 00, 2208.90 99 00 Ethyl alcohol 1)  with alcohol content less than 
1.2% vol - €550 per hectolitre 
Tobacco products 
2402 20 90 00, 2402 20 10 00 Cigarettes 26 % + €1/1,000 pieces 
2402.10 00 00, 2402.20 10 00, 2402.20 90 00, 2402.90 00 00 Cigars and cigarillos €10/kg 
 Fine shredded tobacco €20/kg 
2403.10 10 00, 2403.10 90 00 Smoking tobacco €15/kg 
Mineral oils, mineral oils derivatives and their substitutes 
2710.11 31 00, 2710.11 41 00, 2710.11 45 00, 
2710.11 49 00, 2710.11 51 10, 2710.11 59 00 Petrol and other light oils 1)  €0.12/kg for aircraft gasoline 
and gasoline type jet fuel 
2) €0.364/l for unleaded motor 
gasoline and other types of 
motor gasoline WT/ACC/SPEC/CGR/4 
Page 26  
 
 Tariff number Product name Tax rate 
2710.11 90 00, 2710.19 21 00, 2710.19 25 00, 
2710.19 29 10, 2710.19 29 90 Kerosene 1)  €0.12/kg for motor petroleum, 
petroleum or kerosene type jet 
fuel and other type of kerosene 
2)  €0.069/kg for petroleum 
(kerosene) type jet fuel used as 
heating fuel (HS 2710.19 21 
00) 
2710.19 41 10, 2710.19 41 90, 2710.19 45 10, 2710.19 45 90, 2710.19 49 10, 2710.19 49 20, 
2710.19 49 90 Gas oils 1)  €0.27/l for diesel fuels and for 
ship and other fuels 
2)  €0.12/l for diesel fuels used as 
heating fuel and other oils  
2710.19 61 00, 2710.19 63 00, 2710.19 65 00, 
2710.19 69 00 Heating oils €0.023/kg 
2711.19 00 00 Oil gases €0.069/kg 
2711.12, 2711.13 Mixture of propane and butane €0.069/kg 
 
73. Ethyl alcohol (ex HS 2207) used as a raw mate rial in the manufacture of fermented products, 
vinegar, and chemical and cosme tic products (only denatured ethyl alcohol) was exempt from excise 
tax.  Chocolate containing alcohol (ex HS 1806) w as exempt provided the amount of alcohol did not 
exceed 8.5 litres of pure alcohol per 100 kilograms;  the limit for other food items was 5 litres of pure 
alcohol per 100 kilograms.  Institutions in the h ealth sector could obtain a licence from the tax 
authorities allowing them to purchase ethyl alcohol for medical purposes without payment of the 
excise tax.  The excise tax was not paid on mineral o ils used as fuel in air and maritime traffic and as 
fuel for fishing boats (except when  used for private purposes), for th e production of electric energy or 
the joint production of electric and heating energy, for further processing, or for injection in blast 
furnaces for chemical reduction purposes as an additive to coke as the basic fuel.  Reimbursement and 
drawback of excise duties was available in all these cases, as well as for exported goods on which 
excise tax had been paid; importers paying excise du ties and subsequently returning the goods in an 
unchanged condition; and licensees acquiring excise goods at a price including the excise, and using such goods in an excise goods warehouse for the production of excise goods.   
74. Article 32 of the Law On Excise Tax exempted from excise tax goods sold on board vessels 
and aircraft in international transport; excisable goods  in travellers' personal l uggage within the limits 
established by customs legislation; and fuel in the standard reservoirs of motor vehicles, vessels, and 
aircraft provided the fuels were not intended for further sale and exempt from the payment of import 
duties in accordance with the custom s legislation.  The excise tax was not payable on goods brought 
into Montenegro for the official needs of diplomatic and consular representative offices accredited in 
Montenegro, international organizations (by intern ational agreement), and for the personal needs of 
their staff pursuant to Article 31 of the Law.  Th e Ministry of Foreign Affairs issued certificates 
verifying that the application of the excise tax ex emption was subject to a reciprocity requirement 
based on an international agreement.    WT/ACC/SPEC/CGR/4 
 Page 27 
 
 
 75. The representative of Montenegro said that a sal es tax had been replaced by value added tax 
on 1 April 2003 pursuant to the Law on Value Added Tax (RM OG Nos. 65/01, 12/02, 38/02, 72/02 
and 21/03).  VAT was levied on imported and domesti cally-produced goods at a rate of 17 per cent.  
A reduced rate of 7 per cent was applied to some  products and services.  The tax base for imported 
goods was the customs value inclusive of import duty and excise tax, if applicable, as well as 
transportation and distribution costs to the first d estination in Montenegro.  The obligation to pay 
VAT arose at the same ti me as the obligation to pay customs duty and other import charges.  Goods 
temporarily exported for processing, repair or m ounting were assessed VAT upon return on the value 
added abroad and any materials used for these purposes.  Certain goods and services were VAT 
exempt (see Tables 6(a) (goods) and 6(b) (services)).   In addition, medicines and medical devices 
were zero rated in accordance with the Law on Amendments to the Law on Value Added Tax 
(RM OG No. 76/05). 
Table 6(a): Goods exempt from VAT  
 
Tariff number Product name 
4907.00 10 00, 4907.00 30 00, 4907.00 90 00 Post mark, administrative and judicial fees and tax mark 
7106, 7108, 7110 Gold and other precious metals 
 
Table 6(b):  Services exempt from VAT  
 
Services exempt from VAT in the public interest: 
1. Public postal services performed by the post office of Montenegro 
2. Health services and care and delivery of goods including supply of human organs, blood and human 
milk performed in accordance with the law go verning the field of health care activities 
3. Social security services and th e supply of goods directly linked to social security services that are 
performed in accordance with the regulations gove rning the field of soci al security services 
4. Services in pre-school education and the education and training of children, young people and adults, 
including the supply of goods and services direc tly linked to these activities, provided these activities 
are performed in accordan ce with the regulations governing this field 
5. Services and deliveries of goods by nursery sch ools, primary and secondary schools, universities, and 
by student catering and boarding institutions 
6. Services related to culture including tickets for cu ltural events and supply of goods directly related to 
those services provided by non profit organizations in accordance with regulation governing the field of culture 
7. Services related to sport and sport education, which perform non-profit organizations (associations, etc) 
8. Monthly subscription on radio and TV program 
9. Religious services and supply of goods directly linked to religious services performed by religious 
institutions in order to satisfy the needs of the faithful, in accordance with the regulations related to 
those communities 
10. Services provided by non-government organizati ons established in accordance with the regulations 
governing the activities of those organizations unless it is unlikely that such exemptions would lead to a 
distortion of competition 
Other VAT exempt services: 
1. Insurance and reinsurance services, including se rvices provided by insura nce brokers and agents 
2. Supply of immovable propriety, except the first transfer of the ownership rights that is the rights to 
dispose of newly-constructed immovable property 
3. Services of leasing and subletting of residential houses, apartments and permanent residential premises 
for longer than 60 days and lease of agricultural land or forests, which are registered in land books WT/ACC/SPEC/CGR/4 
Page 28  
 
 4. 
(a)  
(b) 
 (c) 
 
(d) 
 
(e) Banking and financial services, such as: 
Approving and managing credits, and approving and managing guarantees that is other forms of credit insurance on the part of the lender; 
Services relating to the management of deposits, savings, bank accounts, conducting payment 
transactions, transfers, executing due liabilities, cashi ng cheques or other financial instruments, except 
for recovery of debts and factoring; 
Transactions, including the issuing of bank notes an d coins, which are legal tender in any country, 
excluding collector items; the collector items shall be considered to be coins of gold, silver and other 
material, bank notes not in use as legal tender, and coins with a numismatic value; 
Trading in shares that is other forms of participati on in companies, bonds and other securities, including 
their issuance, except for the safekeeping of securities; 
Investment fund management.   
5. Services of games of chance 
 
76. The VAT exemptions applied equally to im ported and domestically-produced goods.  In 
addition, no VAT was levied on (i) goods in transit,  (ii) goods re-imported in an unchanged state by 
the person exporting the goods; (iii) re-imported goods having been subject to a service abroad, 
provided the refund of VAT had not been recognized there; (iv) imports by State bodies or humanitarian organizations to be distributed free of ch arge to alleviate social needs (excluding coffee, 
alcoholic beverages, tobacco and tobacco products, and motor vehicles other than rescue vehicles); 
(v) duty-free goods imported by diplomatic missions, c onsulates, international organizations and their 
staff within the limits and conditions set forth in  international conventions  and as approved by the 
Minister of Foreign Affairs; (vi) services relate d to imported goods, provided the value of such 
services was included in the tax base; and (vii) go ld, other precious metals, bank notes, and coins 
imported by the Central Bank of Montenegro.  Temporarily imported goods were exempt from VAT 
provided they were also exempt from customs duti es according to the customs legislation.  Other 
special exemptions (Article 30 of the Law) relate d to imported goods to be stored in an excise 
warehouse, imports to be submitted to the customs authorities and stored temporarily in accordance 
with customs regulations, goods destined to a free customs zone, and imports to be subjected to a 
customs warehousing procedure or import proced ure for export under a suspension arrangement.  
VAT exempt goods subsequently put into free circ ulation would be subject to VAT (to the same 
amount that should have been  applied upon importation). 
77. The representative of Montenegro added that fa rmers, not themselves registered to pay VAT 
but delivering agricultural or forestry goods and services to registered taxpayers, could claim 
compensation for VAT charged on their inputs at a flat rate of 5 per cent (Law on Amendments to the Law on Value Added Tax (RM OG No. 76/05)).   
78. Asked to explain why banking, insurance and games of chance were exempt from VAT, the 
representative of Montenegro said that these services  were regulated under separate legislation, i.e.  WT/ACC/SPEC/CGR/4 
 Page 29 
 
 
 the Law on Tax on Insurance Premium (RM OG No s. 27/04 and 37/04) and the Law on Games of 
Chance (RM OG No. 52/04).   
79. In response to specific questions, the representativ e of Montenegro stated that (i) the Law on 
Excise Tax and the Law on Value Added Tax were the only laws governing the taxation of imports 
and domestic goods, (ii) all domestic taxes levied on goods were applied no less favourably to imports 
than to similar domestically-produced goods per Artic le III of the GATT, (iii) the eligibility for the 
excise tax exemption for mineral oil used in blast  furnaces was not subject to any export performance 
or import substitution requirements, and that (iv) imports from, and exports to, all countries received 
identical treatment in the application of domestic taxes.  She added that the Law on Value Added Tax 
was undergoing revision with a view to making cu rrently VAT-exempt goods subject to VAT at a 
reduced rate of 7 per cent.   
- Quantitative import restrictions, including prohibitions, quotas and licensing systems  
80. The representative of Montenegro said that Article 14 of the Foreign Trade Law 
(RM OG No. 28/04) stipulated that goods could not be  imported if trade in such goods was banned in 
Montenegro.  Her Government could also ban impor ts, temporary imports, or good in transit banned 
under the legislation of the country of export, origin , or destination.  The Decision on the Control List 
for Export and Import of Goods (RM OG No.44/04) of 17 June 2004 contained a list of dangerous 
waste banned for importation into Montenegro.  In  order to prevent pests and diseases endangering 
human or animal health, Montenegro could prohibi t imports of animals, plants, animal and plant 
products and other goods from specific countri es or territories based on international 
recommendations and guidelines, available scientific ev idence, and the animal and plant health status 
of such countries or territories.  Any such r estrictions were applied consistently with the 
Agreement on the Application of Sanitary and Ph ytosanitary Measures.  A list of imported goods 
prohibited according to the Law on Plant Health Protection (RM OG No. 28/06) is reproduced in 
Table 7.  According to Article 15 of the Forei gn Trade Law, quantitative import restrictions could 
only be applied in the form of safeguard measures.   
81. The representative of Montenegro said that the Decision on Control List for Export and 
Import of Goods (RM OG No. 44/04) defined the goods subject to licenses, approvals or certificates.  
The full list - more than 30 pages of items – was submitted in document WT/ACC/CGR/3/Add.1, 
Annex 11.  She noted that a revised Decision on Cont rol List for Export, Import and Transit of Goods 
(RM OG No. 19/06), including GATT/WTO justifications  for the specific measures, had been issued 
on 16 March 2006.  The revised Decision included a general import/export control list, and specific 
lists enumerating narcotics, precursors, substances damaging the ozone layer, wastes, endangered wild WT/ACC/SPEC/CGR/4 
Page 30  
 
 plant and animal species (CITES), and protected rare, rarefied, endemic and endangered plant and 
animal species.  She noted that the number of  products subject to non-automatic import licensing 
(listed in Annex I of the revised Decision) ha d been substantially reduced.  Information on 
Montenegro's non-automatic import licensing procedures was provided in document WT/ACC/CGR/18.   
82. According to this document, the Ministry for Economic Development issued licenses for 
explosives and materials for the making of explos ives, polycarbonates, precious metals and metals 
clad with precious metal, TV apparatus and sound recorders and reproduction equipment, tanks and 
warships, lasers and other optical appliances and in struments, and arms and ammunition.  Licenses for 
uranium and thorium (ores and concentrates); nuclear reactors; X-ray or alpha, beta, gamma radiation 
apparatus; wastes; substances damaging the ozone layer; endangered and protected species of wild 
flora and fauna; and protected rare , rarefied, endemic a nd endangered plant and animal species were 
issued by the Ministry of Tourism and Environmenta l Protection.  The Ministry of Health, Labour and 
Social Welfare was the licensing authority responsib le for arsenic, narcotics and precursors.  The 
Ministry of Agriculture, Forestry and Water Manage ment issued licenses for fertilizer and pesticides, 
whereas the Veterinary Administration was in char ge of licenses for live animals, live aquaculture, 
products of animal origin, embryo and fertilizati on ovum cellules, semen for artificial insemination, 
animal feed, and medicines and vitamins used in veterinary medicine.   
83. The Foreign Trade Law (RM OG No. 28/04) and the Decree on Implementation of Foreign 
Trade Law (RM OG No. 52/04), the Decision on Control list for Export, Import and Transit of Goods 
(RM OG No. 19/06), the Law on Administrative Procedure (RM OG No. 60/03), and the Law on Administrative Dispute (RM OG No. 60/03) constitute d the general legislative basis for the issuance 
of import licenses.  In addition, depending on the product, licenses were issued on the basis of the 
Law on Foreign Trade in Arms, Military Equipm ent and Dual Use Goods (SM OG Nos. 7/05 and 
8/05), the Decree on Taking Over Responsibilities from  the Law on Foreign Trade in Arms, Military 
Equipment and Dual Use Goods (RM OG No. 40/06), the Environmental Protection Law 
(RM OG Nos. 12/96 and 55/00), the Law on the Basis of Environment Protection (FRY OG No. 24/98), the Law on Transportation of Hazar dous Substances (FRY OG No. 27/90), the Law on 
Production and Circulation of Waste Substances (FRY  OG Nos. 15/95,  28/96 and 37/02), the Law on 
Protection from Ionizing Radiation (FRY OG No. 46/96), Decision on Placement under Protection of Specific Plant and Animal Species (RM OG No. 76/06), the Law on Production and Circulation of Narcotics (FRY OG Nos. 46/96 and 37/02), a nd the Veterinary Law (RM OG No. 11/04).    WT/ACC/SPEC/CGR/4 
 Page 31 
 
 
 84. The non-automatic licenses were not intended to r estrict the quantity or value of imports.  The 
system operated on the basis that the importers s hould only approach one single administrative organ, 
and failure to meet the ordinary criteria would be the only circumstance under which applications 
could be refused.  Such refusal (and the reason) w ould always be communicated to the applicant in 
writing, and the Ministry's decision could be challenged before the Administrative Court.  Non-automatic licenses should be delivered within 30 days  (15 days for arsenic, narcotics and precursors); 
in practice the period could be mu ch shorter (about one week).  No  deposit or advance payment was 
required.  The validity of the licenses and the cost differed from one Ministry to another.  Licenses 
issued by the Ministry for Economic Development were  valid for up to one year at a cost of €60.  The 
Ministry of Tourism and Environmental Protecti on charged €60 for one-year licenses to import waste, 
€100 for endangered and protected species of wild fl ora and fauna, €150 for substances depleting the 
ozone layer, and €500 for licenses to import sources of ionizing radiation.  The Ministry of Health, 
Labour and Social Welfare charged €30 for licenses valid from one to four months.  The fee was €70 at the Ministry of Agriculture, Forestry and Water Management for licenses valid for 60 days (extendable), and €60 for three-month licenses issued  by the Veterinary Administration.  She added 
that the Ministry for International Economic Re lations and European In tegration had initiated 
discussions with the other relevant State authorities in order to harmonize the licensing procedures.   
85. Some Members noted that Montenegro had passed a Law on Waste Disposal in 2005, 
abolishing an earlier requirement obliging the importer to demonstrate that the particular quality of 
the imported waste was not available in the domestic market.  However, the Law would not enter into 
force until 1 November 2008.  Montenegro was requ ested to explain the reason for the delay, and 
outline the requirements applied to imported waste in the interim period.   
86. In reply, the representative of Montenegro said that Article 8 of the Rulebook on 
Documentation to be Submitted along with Request for Issuance of Import, Export and Transit of 
Wastes (FRY OG No. 69/99) required a statement from the processor that the imported waste did not 
exist in the domestic market in the necessary quanti ties.  This provision would be abolished by the 
date of Montenegro's accession to the WTO.  The entry into force of the Law on Waste Disposal had 
been delayed to give all municipalities enough time to  establish sanitary landfills - an obligation under 
the new Law.   
87. A Member stated that Montenegro had a leg itimate interest in protecting its citizens from 
unsafe products, but that WTO rules made ample provision for technical regulations for such 
protection, rather than the broad application of import licensing procedures burdening trade.  Many of 
the justifications offered by Montenegro for its li censing regime suggested that the concerns should be WT/ACC/SPEC/CGR/4 
Page 32  
 
 addressed through non-discriminatory and transparent TBT or SPS technical regulations.  The 
Member requested Montenegro to review its li censing regime and evaluate whether TBT or SPS 
technical regulations would better advance its objectiv es.  In reply, the representative of Montenegro 
said that the licensing regime had been reviewed with  a view to reducing the number of items subject 
to licensing.  However, the review had concluded that no currently applied licenses could be replaced 
by technical requirements or SPS measures.   
88. Concerned about the continued broad scope of Montenegro's licensing regime, some 
Members requested detailed information about the nu mber of import licenses issued by each Ministry 
as well as the total value of imported goods subject to licenses, recalling the extensive obligations to 
provide such information according to Article  3.5(a) of the Agreement on Import Licensing 
Procedures.  These Members also noted that Monten egro was amending the Foreign Trade Law to add 
provisions on automatic and non-automatic license s and that all by-laws deriving from the Foreign 
Trade Law, including the Decision on Control List fo r Export, Import and Transit of Goods, would be 
amended accordingly.  Montenegro had recognized th at the import licenses issued by the Veterinary 
Administration were WTO-inconsiste nt and would be abolished.  It was also noted that the import 
licenses for fertilizer and pesticides were being elim inated as Montenegro had moved to a system of 
activity licensing for these products in June 2007.  A Member failed to understand the need for 
licenses for "precious metals and metals clad w ith precious metal" and "TV apparatus and sound 
recorders and reproducers".  Montenegro was also re quested to explain the reason for the differential 
fees applied by the Ministry of Tourism and Environmental Protection.   
89. The representative of Montenegro  provided information on the number of import licenses 
issued by each Ministry as well as the total value of imported goods subject to licenses in document 
WT/ACC/CGR/24/Add.3.  She added that Parlia ment had adopted the Law on Amendments and 
Modifications of the Law on Customs Tariff in Ma rch 2007, as well as amendments to the Foreign 
Trade Law.  The Decision on Control List for Expo rt, Import and Transit of Goods had entered into 
force in July 2007 (RM OG No. 45/07).  As part of this work, some of the non-automatic licenses had 
been converted into automatic licenses and impor t licenses had been abolished for the following 
goods: . precious metals and metals clad with preci ous metal; magnetic tape recorders and other sound 
recording apparatus, whether or not incorpor ating a sound reproducing device; tanks and other 
armored fighting vehicles, motorized, whether or not  fitted with weapons, and parts of such vehicles; 
warship; some military weapons, other than revolve rs, pistols and arms under heading 9307.  In her 
view, the Decision on Control List for Export, Import and Transit of Goods was in line with the Agreement on Import Licensing Procedures.  She adde d that the licence fees charged by the Ministry 
of Tourism and Environmental Protection were under re vision.  The amendments were expected to be  WT/ACC/SPEC/CGR/4 
 Page 33 
 
 
 adopted by the end of February 2008.  She c onfirmed that Montenegro would discontinue the 
licensing regime administered by the Veterinary Administration.   
- Customs valuation 
90. The representative of Montenegro said that the Law on Ratification of the Agreement on 
Implementation of Article VII of GATT and its asso ciated Protocol (FRY OG 1/82 – international 
agreements), the Customs Law (Articles 29-45 - reproduced in document WT/ACC/CGR/3/Add.1, 
Annex 4), and the Decree on Impl ementation of the Customs Law (R M OG No.15/03), constituted the 
principal basis for customs valuation rules and pr ocedures in Montenegro.  Montenegro submitted a 
completed questionnaire on the implementation a nd administration of the Customs Valuation 
Agreement in document WT/ACC/CGR/7, Annex 3.   
91. Having reviewed the legislation and the qu estionnaire, some Members sought further 
information regarding the possible conformity of Montenegro's legislation with the Agreement on 
Implementation of Article VII of the General Ag reement on Tariffs and Trade 1994, notably (i) the 
incorporation of the Interpreta tive Notes to the Agreement; (ii) other legislation addressing the 
transparency, commercial secrets, and right of admi nistrative and judicial appeal provisions of the 
WTO Agreement; (iii) any facility allowing importers to post a guarantee for duties owed to Customs 
in the form of a surety, bond, or other such instrument to clear th eir goods from Customs when a final 
determination on the duties owed was being delayed;  and (iv) an explanation for how Article 36, 
paragraph 2 of the Customs Law conformed with Artic le 6.2 of the Agreement.  A Member was also 
concerned that Article 74 of the Decree on Impl ementation of the Customs Law would not permit 
accurate implementation of the Interpretative Note to  Paragraph 1(b) of Article 1 of the Agreement, 
which applied to all transactions, whereas the sc ope of Article 74 appeared to be limited to 
transactions between business partners.   
92. The representative of Montenegro replied that th e majority of the Interpretative Notes to the 
Agreement had been included in the Customs Law or in the Decree on Implementation.  The Customs 
Law and its implementing regulations had been  amended in October 2006 to include the few 
remaining Interpretative Notes.  The amendments ha d come into force on 1 January 2007.  Article 8, 
Paragraph 3 of the Customs Law provided for the right of appeal of first instance decisions of the 
customs authorities.  The right of appeal to an independent judicial authority without penalty was 
provided generally in the Law on Administrative Disputes (RM OG No. 60/03), whereby any final 
administrative decision could be appealed to the Administrative Court or - as the case might be - to 
the Supreme Court of Montenegro.  Transparency, commercial secrets and the right of administrative 
and judicial appeal was not addressed in other legi slation.  Legislation governing trade secrets had WT/ACC/SPEC/CGR/4 
Page 34  
 
 been adopted in December 2007 (RM OG No. 96/07).  On item (iii), Montenegro had no specific 
provision on this issue, but Articles 189 to 200 of the Customs Law regulated generally the issuance 
of guarantees for customs debt, and could be appli cable to these circumstances.  She confirmed that 
the prohibition under Article 36, paragraph 2 of th e Customs Law applied only to non-residents.  
Article 74 of the Decree had been amended by the Decree on the Amendments to the Decree on Implementation of the Customs Law (RM OG NO. 81/ 06) to refer to the appropriate provision 
(Article 30, Paragraph 2) of the Customs Law.  In her opinion, the new Decree ensured the full 
compliance of Montenegro's customs valuati on legislation with WTO requirements.   
- Rules of origin 
93. The representative of Montenegro said that Articles 23 to 28 of the Customs Law and 
Articles 13 to 67 of the Decree on Implementati on of Customs Law (RM OG No.15/03) laid down 
detailed provisions on rules of origin.  The Law defined non-preferential rules of origin for the 
purposes of applying the Customs Tariff (except for goods entering under free trade agreements), to 
apply measures established by other regulations governing trade in goods, and for the issuance of certificates of origin.  Goods were evaluated according to the "wholly obtained" criterion or - for 
goods produced in more than one country - where the imports had undergone the last substantial, 
economically justifiable processing.  Simple assembly of parts; treatment to preserve the characteristics of products during transportation a nd storage; labelling and marking; separation, 
sorting, sifting, rinsing or cutting; changes in quantity; and packing and re packaging of goods would 
not be considered substantial, economically justifiable processing.  Any processing undertaken for the 
sole purpose of circumventing the provisions of th e Customs Law would not be deemed authentic.   
94. Preferential rules of origin were stipulated in Montenegro's free trade agreements.  The origin 
was proven by the presentation of an EUR1 certificate of origin or an exporter's declaration.  The 
Customs Administration issued certificates of prefer ential origin, whereas non-preferential certificates 
of origin for domestic goods were issued by the Chamber of Commerce.  She confirmed that the 
European Community was treated as one entity  for the determination of origin.   
95. Asked how the provisions of Article 2(h) and Para 3(d) of Annex II of the WTO 
Agreement on Rules of Origin were implemented in  Montenegro's legislation, the representative of 
Montenegro pointed to Article 12 of the Customs Law and Articles 8 and 10 of the Decree on 
Implementation of the Custom Law.  The customs authority issued binding information on the classification and origin of goods within 60 days of receipt of a request (the deadline for classification determinations was three months).  The assessments remained valid for two years provided the facts and conditions, including the rules of origin, under which they had been made remained comparable.   WT/ACC/SPEC/CGR/4 
 Page 35 
 
 
 She subsequently noted that the implementing De cree had been amended to extend the period of 
validity of assessments to three years (RM OG No. 81/06).   
- Other customs formalities 
96. The representative of Montenegro said that the processing of imports by Customs required the 
submission of a customs declaration; the invoi ce; the Bill of Lading; certificates of fact, 
force majeure, or end user; and - as necessary - certificates of origin, certificates of conformity; 
veterinary, phytosanitary, health or quality certifi cates; approvals; or licenses.  In response to a 
specific question, she confirmed that Montenegro  did not require the authentication of import 
documentation by its consular offices or by othe r institutions in the country of export.   
- Preshipment inspection 
97. The representative of Montenegro said that gove rnment-mandated preshipment inspection of 
the nature foreseen in the Agre ement on Preshipment Inspection was not applied in Montenegro.   
- Anti-dumping, countervailing duties, safeguard regimes 
98. The representative of Montenegro said that anti-dumping and countervailing measures could 
be imposed on imports pursuant to the Forei gn Trade Law (Article 36) and the Decree for 
Implementation of the Foreign Trade Law.  The Mi nistry for International Economic Relations and 
European Integration would conduct investigations based on written requests filed by or on behalf of 
the domestic industry (i.e. producers collectively acc ounting for more than 25 per cent of the national 
output of a like product).  A no tification announcing the initiation of  proceedings would be published 
in the Official Gazette.  The inves tigation should be concl uded within one year of the initiation.  If the 
Ministry confirmed the existence of dumping or subsid ization, and the resulting injury to the domestic 
industry, a recommendation would be made to the Government, which decided on the imposition of 
anti-dumping or countervailing duty.  Decisions to levy anti-dumping or countervailing duty - 
whether provisionally or definitely – would be p ublished in the Official Gazette.  Provisional anti-
dumping duty could be levied for maximum six months; for provisional countervailing duties the 
period could not exceed four months.  Subject to review by the Ministry, anti-dumping or 
countervailing duties remained in force as long as n ecessary to remedy the injury, but not for more 
than four years.  She considered the anti-dumpi ng and countervailing provisions of the Foreign Trade 
Law and the Decree for Implementation of the Fore ign Trade Law to be fully compliant with the 
Agreement on Implementation of Article VI of the GATT 1994 and the Agreement on Subsidies and 
Countervailing Measures.   WT/ACC/SPEC/CGR/4 
Page 36  
 
 99. The representative of Montenegro said that he r Government could impose safeguard measures 
on imports based on the recommendation of the Mini stry for International Economic Relations and 
European Integration.  The Ministry's recommendati on would be the result of an investigation carried 
out as required under the Foreign Trade Law (Article s 44 to 50) and the Decree for Implementation of 
the Foreign Trade Law (Articles 38 to 42).  The Mini stry's decision to initiate an investigation was 
published in the Official Gazette.  A safeguard measure could be in the form of a quantitative 
restriction or a price-based measure.  Her G overnment could introduce a provisional safeguard 
measure - in the form of a tariff increase - for a period not exceeding 200 days if evidence showed 
clearly that the increased imports were causing or threatening to cause serious injury to the domestic 
industry, and a delay would cause injury difficult to repair.  Safeguard measure s remained in force as 
long as necessary to remedy an injury, but not for more  than four years (or a total of eight years in 
exceptional circumstances).  She considered the provisions on safeguard measures in the Foreign 
Trade Law and the Decree for Implementation of the Foreign Trade Law to be fully compliant with the Agreement on Safeguards.   
100. The representative of Montenegro considered Montenegro's trade remedy legislation WTO 
compliant, but confirmed that Montenegro would not apply any anti-dumping, countervailing or 
safeguard measure until it had notified and implemen ted appropriate laws in conformity with the 
provisions of the WTO Agreements on the Impl ementation of Article VI of the GATT 1994, 
Subsidies and Countervailing Measures, and Safeguards.   
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
101. The representative of Montenegro said that indi viduals and enterprises wi shing to engage in 
exporting were obliged to register pursuant to the Foreign Trade Law (RM OG No. 28/04).  The 
registration requirements for exporte rs were identical to the requirements for importers (see "Trading 
rights").  Exporters of goods subject to activity  licensing were subject to additional registration 
requirements pursuant to the Law on Production a nd Circulation of Narcotics (FRY OG No. 46/96 
and 37/02), the Law on Production and Circulation of Poisonous Substances (FRY OG Nos. 15/95, 
28/96 and 37/02), the Law on Medicines (RM OG No. 80/04) and the Law on Tobacco 
(RM OG No. 80/04).   
102. The representative of Montenegro said that no e xport duties were being applied at present.  
Montenegro had applied an export duty of 15 per cent on ferrous metals and scrap steel, and  WT/ACC/SPEC/CGR/4 
 Page 37 
 
 
 20 per cent on raw hides.  The export duty on ferrous  metals had been abolished in 2005 according to 
the Decision on Abolishment of Export Duties for Ferrous Metals (RM OG No. 25/05), and the export 
duties on scrap steel and raw hides had been eliminat ed with the entry into force of the new Law on 
Customs Tariff in January 2006.   
- Export restrictions 
103. The representative of Montenegro said that M ontenegro did not prohibit the export of any 
goods.  Article 15 of the Foreign Trade Law a llowed her Government to introduce quantitative 
restrictions on exports in case of critical shortag es of essential products, to relieve the consequences 
of such shortages, or in order to protect an exha ustible natural resource - applied simultaneously with 
restrictions on domestic production or consumptio n.  The Ministry for International Economic 
Relations would be in charge of quota allocations.  She stressed that the Fore ign Trade Law stipulated 
that quantitative export restrictions could be appl ied only in strict WTO-compatible circumstances, 
that no quantitative export restrictions were being a pplied at present, and that no such restrictions 
were being contemplated.  Moreover, Montenegro di d not resort to any other export measures such as 
minimum export prices, voluntary export restric tions, or orderly marketing arrangements.   
104. Export licensing could be applied pursuant to Article 6 of the Foreign Trade Law.  The 
Decision on Control List for Export, Import and Transit of Goods (RM OG No. 19/06) established a regime for export licensing comparable to that a pplicable to imports.  However, whereas no licenses 
were required for imports, the Ministry of Culture licensed exports of artefacts of artistic, cultural, 
historical and archaeological value, notably for (i ) paintings, drawings and pastels; (ii) original 
engravings, prints and lithographs; (iii) original sculp tures and statues; (iv) postage or revenue stamps, 
stamp-postmarks, first day covers, postal stationery (stamped paper);  (v) collections and collectors' 
items of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest; and (vi) antiques of an age exceeding 100 years.  In order to get 
a licence, the applicant should submit a confirmati on from the Republic Institution for Protection of 
Cultural Monument; if applicable, an export conformity statement from the copyright holder; a photograph of the artwork being exported; and the recei pt for payment of the €10 administrative fee.   
- Export subsidies 
105. The representative of Montenegro said that M ontenegro did not provide any subsidies or 
government benefits to promote exports.  In response to a specific question, she confirmed that Montenegro did not maintain prohibited subs idies within the meaning of Article 3 of WT/ACC/SPEC/CGR/4 
Page 38  
 
 the Agreement on Subsidies and Countervailing Measu res, including benefits contingent upon export 
performance or local content, and that it would not in troduce such prohibited subs idies in the future.   
106. Asked to the explain the conformity of Montenegro's duty drawback scheme with 
Annexes I item(i), II and III of the Agreement on Subsidies and Countervailing Measures, the 
representative of Montenegro said that Articles 128 to 132 of the Customs Law allowed duty drawback on imported goods not released for free ci rculation and subsequen tly exported.  The duty 
drawback was equal to the amount of the original  charges on the imported goods.  In her view, the 
duty drawback scheme conformed to the Agreement on Subsidies and Countervailing Measures, including its Annexes.  Drawback of customs duty could be requested no later than three years from 
the date when the customs debt had been incurred.   
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS - Industrial policy, including subsidies 
107. The representative of Montenegro submitted a draf t notification pursuant to Article XVI:1 of 
the GATT 1994 and Article 25 of the Agreement on S ubsidies and Countervailing Measures, covering 
the years 2004 and 2005, in document WT/ACC/CGR/15, and for 2006 in document 
WT/ACC/CGR/15/Add.1.  Support was made availa ble through the Law on Budget.  During the 
2004-2006 period, the Ministry of Economic Development had administered a loan programme 
− Programme for Restructuring of Companies − to prepare industrial enterprises undergoing 
privatization for restructuring and modernization.  The duration of the loan s was three years with a 
grace period of one year, and the annual rate of inte rest was two per cent.  Eligibility criteria included 
the company's export potential, its ability for restru cturing, its human resources potential and whether 
the company was eligible for privatization within 12 months.  The credit was aimed at strengthening 
the working capital of the enterprises, coveri ng the costs related to worker redundancies and 
reconstruction of facilities, defining the optimal organizational structure and number of employees, 
improving the companies' business competitiveness, and assisting the companies in their restructuring 
to enable them to operate in an open market  economy.  As the programme was linked to the 
privatization of these enterprises, the scheme would be terminated once the privatizations had been 
completed.  The estimated value of the subsidy had amounted to €2.65 million in 2004, €1.76 million 
in 2005, and €1.26 million in 2006.   
108. In addition, the Ministry of Finance had pr ovided subsidized credit worth €2.34 million in 
2004, and €3.07 million in 2006, to the enterprise "O bod" - a manufacturer of electric machinery and 
equipment in which the State owned 51.8 per cent of the capital.  A public tender for the privatization  WT/ACC/SPEC/CGR/4 
 Page 39 
 
 
 of this enterprise was being prepared.  Support provided aimed at preserving the company's assets and 
at preparing it for privatization, and included subs idized credit for the modernization of machinery 
and the restoration of two manufacturing facilities, including the payment of workers involved in 
these activities.  The loans were granted at an annual rate of two per cent and had to be repaid after 
privatization.  Obod was the sole recipient of th ese loans.  In her view, these loans did not affect 
competition as Obod had not been operational in recent years.  
109. She added that the steel producer "Zeljezara" had received grants totalling €0.64 million from 
the Ministry of Economy in 2005.  The grants had compensated the steel producer for the difference between the market price and the contract price fo r electricity supplied by "Elektroprivreda".  The 
Agreement between her Government and the form er majority owner of "Zeljezara" had been 
terminated at the end of 2005, and no subsidy had been paid in 2006.   
110. Finally, grants worth €0.55 million had been provided to companies of various sectors in 
2006 to promote competitiveness.  The programme aimed at improving business practices and transfers of managerial know-how to enable the co mpanies concerned to operate more effectively in 
an open market economy.  Support was provided to enterprises with a positive business outlook and a 
positive approach towards improvement of manageme nt and business practices.  She noted that the 
amounts granted were relatively small and could not affect the performance of the company 
substantially.  
- Technical barriers to trade, standards and certification 
111. The representative of Montenegro recalled that  the former Socialist Federal Republic of 
Yugoslavia hade been a signatory to the TBT C ode under the GATT 1947 and a number of principles 
of that Agreement.  The subsequent WTO Agre ement on Technical Barriers to Trade had been 
incorporated in the legislation of the State Union of Serbia and Montenegro, and under the 
Constitutional Charter of the State Union, legisla tion passed at the Union level had been directly 
applicable in Montenegro.  Thus, standards, technical regulations and conformity assessment 
procedures had been adopted at the Union level pr ior to Montenegro's independence, the key legal 
documents being the Law on Standardization and its two relevant decrees, the Decree on the 
Procedure for the Elaboration and Enactment of T echnical Regulations and for Keeping the Registry 
of these Regulations, and the FRY Decree on the Procedure for the Elaboration, Adoption, and 
Enactment of Yugoslav Standards.  The Ministry of Economy had been the ministry responsible for 
the coordination of activities related to standards and technical regulations in Montenegro, whereas 
the Standards Institution of Serbia and Montenegro - a full member of ISO and IEC – reporting to the 
Union Ministry of Internal Economic Relations, ha d been in charge of implementing the Law on WT/ACC/SPEC/CGR/4 
Page 40  
 
 Standardization and adopting standards in Serbia and Montenegro.  The State Union of Serbia and 
Montenegro had been a signatory to a number of international agreements on mutual recognition of 
certification and test results for specific produc ts, and the Accreditation Body of Serbia and 
Montenegro had recognized certificates and test re ports on the basis of bilateral and multilateral 
agreements.   
112. Following the independence of Montenegro on 3 June 2006, Montenegro had become fully 
responsible for all areas, including TBT, formerly  within the responsibilities of the State Union.  
Montenegro's Parliament had adopted a Resolution of  Parliament on 3 June 2006 whereby all former 
State Union laws would continue to be effective a nd enforced in Montenegro as national laws.  In the 
TBT area, the Resolution covered four key laws adop ted at the State Union level in 2005, namely the 
Law on Standardization (SM OG No. 44/05), the Law on Accreditation (SM OG No. 44/05), the Law 
on Technical Requirements for Products and Conf ormity Assessment of Products with Such 
Requirements (SM OG No. 44/05), and the Law on Metrology (SM OG No. 44/05).  In addition, four regulations had been adopted in 2006, i.e. the Decree on Legal Measurement Units (SM OG 
No. 10/06), the Decree on Manner of Authorizin g Conformity Assessment Bodies, Register of 
Authorized Conformity Assessment Bodies, Records on Certificates of Conformity, Conformity 
Marks and Conformity Assessment Bodies, and the C onditions for Applying Technical Regulations of 
Other Countries (SM OG No. 22/06), the Decree on Manner and Procedures of Conformity Assessment (SM OG No. 22/06), and the Decree on Manner of Preparing and Adopting Technical 
Regulations and Register of Such Regulations  (SM OG No. 17/06).  The Ministry for Economic 
Development of the Republic of Montenegro was pr esently in charge of implementing these laws and 
regulations.  The Ministry had established a workin g group to prepare all necessary by-laws for the 
four laws and to establish all necessary in stitutions in charge of TBT matters.   
113. The representative of Montenegro presented a checklist of illustrative TBT issues in 
document WT/ACC/CGR/20 and a TBT Action Plan in document WT/ACC/CGR/21.  According to 
the checklist and the action plan, a Department for Quality Infrastructure had been established within 
the Ministry.  The Ministry had also established a Bureau for Measures and Precious Metals, and the 
Institute for Standardization of Montenegro  had been set up by government Decision on 
29 March 2007.  A Decision on the Establishment of the Accreditation Body had been adopted on 
29 March 2007, and the Acting Director of the Body  had been appointed on 10 May 2007.  A Register 
of Technical Regulations would be maintained with in the Ministry for Economic Development, while 
the Institute for Standardization would ma intain a Register of Standards.    WT/ACC/SPEC/CGR/4 
 Page 41 
 
 
 114. Some Members noted that Montenegro required certificates of conformity for a substantial 
number of imported items pursuant to the Decision on Control List for Export and Import of Goods 
(RM OG No. 44/04), and that the Decision also listed 53 categories of goods subject to import quality 
control (see documents WT/ACC/CGR/3/Add.1, Annex 5 and WT/ACC/CGR/7, Annex 4).  As 
Montenegro had decided to abolish the Law on Qual ity Control of Agricultural and Food Products in 
Foreign Trade (FRY OG Nos. 12/95, 28/96 and 59/ 98) and its by-laws, these Members asked what 
quality controls would remain, on what legal basis, and which steps Montenegro would take to review 
these controls to ensure they were appropria te and complied with the TBT Agreement.   
115. The representative of Montenegro replied th at the Law on Quality Control had been 
abolished, and so had quality cont rols applied at the border.  Montenegro currently applied quality 
control at the retail level without any discrimin ation between domestic a nd imported goods.  Market 
inspectors checked the goods displayed on the shel ves and, if in doubt, a sample would be taken and 
submitted for analysis.  A product not fulfilling the prescribed conditions would be removed from 
circulation.  The controls were based on some  40 rule books for food items based on specific 
legislation such as the Veterinary Law and the Plan t Health Protection Law.  The Laws referred to 
international standards and to par ticular international organizations such as the OIE, the IPPC, and the 
Codex Alimentarius, although Montenegro was not yet member of Codex Alimentarius.  Quality 
controls on industrial goods were based on various regulations, enum erated in a list of Technical 
Regulations on Quality of Food and Industrial Pro ducts Applied in the Republic of Montenegro 
submitted in February 2007 (see notice in documen t WT/ACC/CGR/22).  No fees were charged for 
quality control at the retail level.  Montenegro w ould review all regulations  governing quality control 
to ensure compliance with the Agreement on Techni cal Barriers to Trade.  A Revised Strategy of 
Quality Infrastructure Development in Montenegro  had been adopted on 7 June 2007.  The Revised 
Strategy included an obligation to harmonize f ood and environmental safety standards, including 
standards of safety at work, with international sta ndards.  All standards whic h were not in conformity 
with international standards would be eliminated .  The review of existing standards had begun in 
December 2007 and was expected to last more than one year. 
116. Asked how Montenegro's regulations could be consistent with Article 2 of the 
TBT Agreement, notably how Montenegro would asse ss the risks leading it to conclude that a 
technical regulation would be required to fulf il a legitimate objective, the representative of 
Montenegro said that a new Law on Technical Requirements for Products and Conformity Assessment of Products with Such Requirements had been drafted to ensure full conformity with the 
provisions of the TBT Agreement.  The La w had been approved by the Parliament on 
20 December 2007 and was now awaiting passage by Parliament.  She noted that the Law did not WT/ACC/SPEC/CGR/4 
Page 42  
 
 stipulate the basis for assessing risks.  The latter would be regulated by the draft Law on General 
Product Safety, which was in the final stages of the adoption procedure. 
117. Concerning standardization and the extent to wh ich Montenegro's standards were based on or 
harmonized with international norms, the representa tive of Montenegro said that the Institute for 
Standardization of Montenegro intended to adopt as national standards around 8,000 European 
standards related to new EU dir ectives and 4,000 EU standards re lated to foodstuff, transport and 
medical devices in a first phase of harmonization.  The Institute intended to adopt the remainder of 
some 21,000 EU standards by the end of the harm onization process.  She noted that the Law on 
Standardization (Article 10, paragraph 1) sti pulated that Montenegrin standards and related 
documents should be adopted and issued in accordance with that Law and the rules of the Institute for 
Standardization, which should be  in compliance with the rules of European and international 
organizations for standardization, particularly w ith the Code of Good Practice for the Preparation, 
Adoption and Application of Standards of the WTO Agreement on Technical Barriers to Trade.  She 
added that most Yugoslav standard s had been harmonized with intern ational standards.  The former 
Institute for Standardization of  Serbia and Montenegro, a join t institution until Montenegro's 
independence in May 2006, had held  13,746 Serbian-Montenegrin standard s in its data base, of which 
323 (2.4 per cent) had been translated CEN standa rds, and nine (0.07 per cent) had been CENELEC 
standards.  Yugoslav standards and Serbo-Monteneg rin standards still in use would continue to be 
used as voluntary standards, provided they were relevant for Montenegro.  She noted that the Revised 
Strategy of Quality Infrastructure Developmen t in Montenegro, which had been adopted on 
29 March 2007, included an obligation to withdraw all standards not harmonized with international 
standards.  Among the international standardizat ion organizations relevant to Montenegro she 
considered the International Organization for St andardization (ISO), the International Electro 
Technical Commission (IEC), and the Internati onal Telecommunication Union (ITU), and amongst 
the relevant European institutions she referred to  the European Committee for Standardization (CEN), 
the European Committee for Electro technical Standardization (CENELEC), and the European 
Telecommunication Standards Institute (ETSI).  Re sponding to a concern that Montenegro could 
appear to be giving priority to regional over inte rnational standards, she said that Montenegro would 
give priority to the TBT Agreement, although regi onal agreements such as CEFTA and the SAA, both 
of which referred to the TBT Agreement in their preambles and provisions, were also carefully 
applied.   
118. With regard to transparency, the representative of Monteneg ro said that Montenegro had 
adopted a Decree on the Manner of Preparing and A dopting Technical Regulations and Register of 
such Regulations.  According to Article 8 of the D ecree, draft technical regulations would be prepared  WT/ACC/SPEC/CGR/4 
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 by working groups established by the Minister of  Economic Development.  The Ministry would 
submit the drafts to all interested authorities, or ganizations and other lega l and natural persons for 
comment.  The title and summary of a particular dr aft technical regulation, as well as information on 
how to obtain the draft, would be available on the Ministry's website, as well as on the website of the Chamber of Commerce.  The Ministry had also prepared a draft Decree on Notification of Technical Regulations, Standards and Conformity Assessment  Procedures appointing the Enquiry Point for 
technical regulations in the Department for Qua lity Infrastructure, whereas the Enquiry Point for 
standards would be located in the Institute for Standa rdization.  The Decree was in the final stages of 
the adoption procedure.  
119. Some Members expressed concerns about the sy stem for introducing and enforcing technical 
regulations in Montenegro.  Article 8 of the D ecree on the Manner of Preparing and Adoption of 
Technical Regulations and Register of Such Regulations appeared to  go beyond the emergency 
exemptions allowed under TBT Article 2.10, and th e Article made no mention of non-discriminatory 
consideration of written comments.  Article 10 of the Decree did not ensure prompt publication of 
TBT regulations, nor did it require the regulator to  provide a "reasonable" interval between final 
publication and entry into force, i.e not less than six months.  A Member reminded Montenegro that 
Article 2.4 of the TBT Agreement required WTO Me mbers to use international standards, if they 
existed, as the basis for technical regulations.  Moreover, Montenegro's laws and decrees did not 
appear to allow it to comply with Articles 6 and 7. 1 of the TBT Agreement as Montenegro seemed to 
accept the results of conformity assessment procedur es conducted by bodies in an exporting Member 
country only if the conformity assessment certific ates and marks were issued "in accordance with 
international Agreements binding on Montenegro " or pursuant to "an Agreement on mutual 
recognition".  The Member was also concerned a bout Montenegro's system for Development and 
Application of Standards and Conformity Assessment Pr ocedures, in particular (i) a lack of priority 
given to international standards thereby creating an  inconsistency with assura nces of "preventing or 
eliminating unnecessary" obstacles or technical barriers to trade, and (ii) the lack of a cost-based fee 
structure in accordance with the WT O TBT Agreement.  Montenegro would need to change its laws 
and/or administrative underpinnings to allow it to accede to the obligations contained in the WTO 
TBT Agreement.   
120. The representative of Montenegro replied that Montenegro was aware of all inconsistencies 
and would prepare draft amendments to its TBT legislation based on comments expressed in the 
Working Party.  The draft Law on Technical Requi rements for Products and Conformity Assessment 
of Products with Such Requirements, which had been approved by the Government and was pending 
passage by Parliament, was conform to Article 2 of the TBT Agreement inter alia  by clarifying the WT/ACC/SPEC/CGR/4 
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 reference to international standards being the basis for technical regulations, standards and conformity 
assessment procedures.  In addition, the new draf t Law on Standardization, which had been adopted 
by the Government on 13 December 2007 and was aw aiting passage by Parliament, provided that all 
standards related to Montenegro's development prio rities would be based on international standards.  
Only where no adequate international standards ex isted would European standards be adopted.  She 
confirmed that Montenegro would take into account the key principles referred to in the Decision of 
the TBT Committee G/TBT/1/Rev.8 when defining international standards.  These principles had 
been included in the new draft.  The new Law w ould also provide for a non-discriminatory and cost 
based fee structure, clarify the right of appeal, provide for a 60-day comment period, and clearly separate the different conformity assessment procedures (Self Declaration and Third Party Certification).  The Decree on Manner of Authoriz ing Conformity Assessment Bodies would also be 
amended.  She confirmed that recognition of conformity assessment certificates and marks of 
conformity would not be dependent on valid mu tual recognition Agreements from the date of 
accession.   
- Sanitary and phytosanitary measures 
121. The representative of Montenegro said that
 the Veterinary Law (RM OG Nos. 11/04 and 
27/07), the Law on Plant Protection (RM OG No.  28/06), the Law on Seed Material (RM OG No. 28/06), the Law on Planting Material (R M OG No. 28/06), the Law on Health Safety of 
Food Items and Articles for Common Use (SFRY OG No. 53/91; FRY OG Nos. 24/94, 28/96 and 
37/02; SM OG Nos. 79/05 and 101/05), together with pertinent regulations, co nstituted the basic legal 
framework for Montenegro's sanita ry and phytosanitary measures.
  A new Law on Food Safety had 
been adopted on 29 November 2007.   
122. The main government agencies involved in the administration of Montenegro's SPS measures 
were the Ministry of Agriculture, Forestry and Water Management; and the Ministry of Health.  
Concerning the participation of Montenegro in the relevant international or ganizations, she said that 
Montenegro had become a member of the Office In ternational des Epizooties (OIE) in May 2007.  
Montenegro was sending representatives to meetings organized by Codex and the International Plant 
Protection Convention (IPPC) but was not yet a me mber of the Codex Alimentarius Commission or 
the IPPC.  However, Montenegro had joined the FAO on 17 November 2007, which was a 
precondition for membership in th e Codex Alimentarius Commission and the IPPC.  The Ministry of 
Agriculture, Forestry and Water Management ha d established a focal point for the IPPC, and 
participated in its meetings, but still without voti ng rights.  She noted that the Former Republic of  WT/ACC/SPEC/CGR/4 
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 Yugoslavia had been a member of the FAO; Codex Al imentarius standards were therefore an integral 
part of Montenegro's current legal system.   
123. The representative of Montenegro presented a Check-list of Illustrative Sanitary and 
Phytosanitary (SPS) Issues in document WT/A CC/CGR/19 and an SPS Action Plan in document 
WT/ACC/CGR/26.  According to the checklist, the principle of necessity in the Agreement on the 
Application of Sanitary and Phytosanitary Measur es (SPS Agreement) had been incorporated in the 
Veterinary Law (Article 2, item 51f; Article 34a, pa ragraph 1, item 1) and in the Law on Plant Health 
Protection (Article 10, paragraph 2).  This principle had also been included in the new Law on Food 
Safety (Article 54, paragraph 2).  Montenegro's SPS  legislation stipulated that regulations governing 
animal and plant health and food safety should be based on scientific evidence according to the 
Veterinary Law (Articles 34a (paragraph 1), 34b (p aragraphs 1, 4 and 5)), and the Law on Plant 
Health Protection (Article 10, pa ragraph 3).  Adherence to intern ational standards, guidelines and 
recommendations - to the extent possible – was prescribed in the Veterinary Law (Articles 6 (paragraph 2), 34a (paragraph 1, item 1), and 34b (p aragraphs 2 and 4)) and the Law on Plant Health 
Protection (Article 10, paragraph 3).  Provisions  had also been included in the new Law on Food 
Safety (Article 9, Article 54, pa ragraph 1, Article 55, paragraph 2 and 3).  Article 2, item 51n of the 
Veterinary Law listed the OIE, the Food and Agri culture Organization of the United Nations (FAO), 
the World Health Organization (WHO), and the WTO as  international organiza tions relevant in the 
area of animal and human health protection.   
124. The principle of equivalence had been in corporated in the new Law on Food Safety 
(Article 59), the Veterinary Law (Articles 33 and 34f, paragraphs 1 and 2), and the Law on Plant 
Health Protection (Article 10, paragraph 6).  Pro cedures governing risk, risk analysis, risk assessment, 
risk management and an appropria te level of protection had been established pursuant to Article 2 
(items 51b to f) of the Veterinary Law, Article 10 of  the Law on Plant Health Protection, and Article 6 
(items 6, 7, 8, 9 and 10) and Articles 15, 16, 17 of Law on Food Safety.  Provisions regarding disease 
free and low disease prevalence areas had been include d in the Veterinary Law (Article 2, items 51 g 
and h), and Article 34b, paragraph3 of the Law stipulated that vete rinary-sanitary measures should be 
adapted to the veterinary-sanitary characteristics of the region from which animals, products, food and 
raw materials of animal origin originated or we re destined.  The observance of regional conditions 
was also laid down in various provisions of the Law on Plant Health Protection (Articles 10 
(paragraph 4), 14 and 15).  Non-di scrimination provisions had been in corporated in the Veterinary 
Law (Article 34a and g), the Law on Plant Health Pr otection (Article 5), and in the new Law on Food 
Safety (Article 54, paragraph 1, item 2).  Border inspection posts and the domestic market inspections WT/ACC/SPEC/CGR/4 
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 respected the principle of non-discrimination by appl ying the laws equally to all operators irrespective 
of nationality.   
125. Noting that pursuant to Article 33 of the Vete rinary Law imports of animal origin were 
allowed only from facilities complying with the prescrib ed requirements or registered in the European 
Union, but that "other facilities" could become elig ible, a Member invited Montenegro to describe the 
process through which "other facilities" could gain  approval to export to Montenegro.  The 
representative of Montenegro replied that in the ev ent of import from such a facility, the Veterinary 
Administration would conduct risk assessment taki ng into account the veterinary-sanitary control 
system and the epizootic situation in the expo rting country, as well as the standards and 
recommendations from the OIE and othe r relevant organizations.  Contro ls of the export facility could 
be carried out to determine the existence of vete rinary-sanitary obstacles to importation.  If the 
regulations, standards, and the ve terinary-sanitary control system of the exporting country provided 
for a level of protection at least equivalent to that of Montenegro, the facility would be granted 
approval to export to Montenegro.  In her view , this provision complied with the concept of 
equivalence of the SPS Agreement. 
126. Article 34g of the Veterinary Law prescribed  the inspection procedures, and Article 60 
(paragraph 3) of the Law stipulated that the insp ection fees should not be higher than the actual cost 
of the relevant procedure.  Compensation was also  addressed in Article 55 of the Law on Plant Health 
Protection.  Each inspection service had a ruleboo k based on the particular law it administered, 
describing in detail the procedures to be used, in cluding controls and sampling methods.  Inspection 
costs were prescribed in various decrees, including in the Decision on the Level of Compensation for 
Veterinary-Sanitary Control in the Trade Across  the Border of the Republic of Montenegro 
(RM OG No. 50/05).  Simple testing was performed at the border, for more elaborate tests samples were sent for laboratory analysis.  Montenegro had three laboratories located in Podgorica, each 
performing separate types of testing - the Institute for Public Health of Montenegro, the Centre for 
Ecotoxicology Research of Montenegro, and the Specialized Veterinary Laboratory.  About 
10 per cent of all imported shipments of animal origin had been subject to laboratory control in 2005.   
127. Agricultural and forest plants and products c ould only be imported through designated border 
crossings.  Article 31 of the Veterinary Law prescri bed that all shipments containing products of 
animal origin should be accompanied by an inte rnational veterinary certificate issued by the 
veterinary service of the exporting country.  The cer tificate should contain information determined by 
the Minister of Agriculture in compliance with OIE guidelines, in general providing information on 
the origin of the goods, their identity, destinati on, the registration number of the transportation  WT/ACC/SPEC/CGR/4 
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 vehicle, and the health conditions of the shipment .  Certified seeds and seedling material were subject 
to phytosanitary examinations during the vegetation period by institutions authorized by the Ministry 
for Agriculture, Forestry and Water Management, and by laboratories testing to confirm that the seeds 
or planting materials were free of pests.  Author ized inspectors carried out  visual inspection, and 
samples could be taken to determine the presence of quarantine pests.  Imported plants or plant 
products containing quarantine pests would be returned or destroyed in Agreement with the importer.   
128. Labelling and packaging of food products were regulated by the Rulebook of Declaration and 
Labelling of Packed Foodstuffs (S&M OG Nos. 4/03 and 12/03), the Rulebook on Conditions of Health of Dietary Foodstuffs Which Can Be Placed  into Circulation (SFRY OG Nos. 4/85, 70/86, and 
69/91), and the Law on Health of Foodstuffs and Items of General Use (FRY OG No. 53/91).  Under 
the Law on Health of Foodstuffs and Items of Ge neral Use, food products were required to be 
labelled.  Labels should be readab le, include nutritional facts, and allow to determine the shelf life of 
the product.  She confirmed that Montenegro's shelf life standards complied with international 
guidelines.  
129. Concerning the principle of transparency and th e establishment of a single Enquiry Point, she 
said that Montenegro had no single enquiry point at present, but a Regulation on Notification 
Procedures of SPS Measures had been adopted in Ja nuary 2008 to comply with Article 7 and Annex 
B.3 of the SPS Agreement.  Pursuant to the Regula tion, the SPS Enquiry Point would be located in the 
Ministry for Agriculture, Forestry and Water Management.  The Ministry would also act as 
Montenegro's notification authority (Article 3 of th e Regulation).  In response to a question, she added 
that the Veterinary Administration, which was under the responsibility of the Ministry of Agriculture, 
Forestry and Water Management, would act as the notification authority to the OIE pursuant to Article 9 of a draft Rulebook on classification and no tification of suspicious animal diseases.  The 
draft Rulebook was expected to be adopted in the fi rst quarter of 2008.  She further noted that, as a 
member of the FAO, Montenegro met the notifica tion requirements of the IPPC.  In response to a 
Member who had expressed concerns over the absence of clear language on transparency in the Law 
on Plant Health Protection, she noted that such language had been included in the Regulation on 
Notification Procedures of SPS measures adopted in January 2008 in implementation of Article 12, 
paragraph 6 of the Law on Plant Health Protection.   In her view, the Regulation complied with the 
transparency obligations of Annex B of the SPS Agreement. 
130. Pursuant to Article 7 of the Regulation, the Ministry was obliged to publish a notice of the 
intention to introduce a sanitary-veterinary meas ure on the official website of the Ministry 
(www.minpolj.vlada.cg.yu) at an early stage of de velopment of the measure.  The Regulation also WT/ACC/SPEC/CGR/4 
Page 48  
 
 required the Ministry to notify members of relevant international organizations of the products to be 
covered by the regulation together with a brief indication of the objec tive and rationale of the proposed 
regulation.  Draft SPS measures had to be notifie d to interested parties and published for public 
comment on the official website of the Ministry of Agriculture, Forestry and Water Management 
(www.minpolj.vlada.cg.yu), or on the websites of the administrative authorities enacting them at least 
75 days before their adoption.  The Law on Stat e Administration and the Regulation on Notification 
Procedures of SPS Measures guaranteed the right of the private sector to comment on Montenegro's 
draft SPS measures.  After adoption, regulations were published in the Official Gazette of 
Montenegro. 
131. A Member noted that the Protocol on the Harm onization of Operations and Procedures in the 
Foreign Trade of Goods Liable to Mandatory Vete rinary-Sanitary and Phytosanitary control at the 
border of State Union of Serbia and Montenegro app eared to have allowed goods subject to veterinary 
or phytosanitary inspection to pass SPS controls in Serbia if brought into Montenegro by an importer 
with a head office in Serbia, and vice versa.  As  Montenegro and Serbia had become independent 
countries, the Member requested information on how such preferential treatment  had been changed.  
The representative of Montenegro replied that following the independence of Montenegro, all 
requirements for importation of products subject to veterinary or phytosanitary inspection from Serbia 
to Montenegro and vice versa had become subject to the regular rules applied on importation of such products from any country.   
132. The representative of Montenegro said that imports of genetically modified organisms and 
wild species of flora and fauna required a permit from the Ministry for Agriculture, Forestry and 
Water Management, or the Ministry for Urban Planni ng and Environment.  The wild species of flora 
and fauna subject to import or export licensing had been identified by incorporating the Annexes of 
the CITES Convention into the Control List.  Licen sing requirements for biotech products had been 
eliminated with the abolition of the Law on the Basic Principles of Environment Protection 
(FRY OG Nos. 24/98 and 24/99).  Genetically modi fied organisms were considered potentially 
dangerous to human, plant and animal health and ther efore subject to a special regime pursuant to the 
Law on Genetically Modified Organisms (FRY OG No. 21/00) and its by-laws.  The Law regulated 
the circulation and marking of agriculture and f ood products originating from GMOs.  She noted that 
a new law had been drafted.  The new Law would pr escribe conditions for the use of GMOs in closed 
systems (laboratory, glass houses); the intentiona l introduction of GMOs in the environment; the 
placing on the market of GMOs or GMO products; the handling, transportation, packing, transit and marking of GMOs or GMO products; and the contro l and supervision of ec onomic operators dealing 
with GMOs.  The Law would enable transpor tation of approved GMO products and included  WT/ACC/SPEC/CGR/4 
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 measures to prevent adverse effects resulting from the use of GMOs.  The Law was meant to give 
consumers a choice.  She confirmed that the former procedures applied in the interim. 
133. She added that Montenegro had amended exis ting legislation to comply with the SPS 
Agreement in the area of veterinary measures, a nd intended to amend a few additional provisions in 
the area of phytosanitary measures.  Work to  reach and ensure full compliance with the SPS 
Agreement was ongoing, and included new regul ations on animal protection based on OIE 
recommendations and standards; ne w regulations on plant protecti on in conformity with IPPC 
standards; examination and harmonization of national legislation with Codex Al imentarius standards; 
the elaboration of guidelines and recommendations re lating to food additives, veterinary drugs and 
pesticide residues; the introduction of a Global Monitoring System on food contamination and 
Assessment Program (GEMS/Food); the reorgani zation of a national reference laboratory in 
compliance with ISO/IEC standards; and implementa tion of the National Food Safety Strategy.  These 
activities would allow Montenegro to accept the pr inciple of equivalence, to perform control, 
inspection and approval procedures consistent with WTO rules, and to take account of risk assessment 
techniques developed by the relevant  international organizations.   
- Trade-related investment measures 
134. The representative of Montenegro said that  Montenegro believed its Law on Foreign 
Investment to be fully compliant with the Agreem ent on Trade-Related Investment Measures.  Asked 
to list all investment opportunities contingent up on the use of local materials in the production 
process, import/export balancing, or linking access to foreign exchange for importation to the value of 
exports, she noted that an activity licence was re quired to manufacture tobacco goods in Montenegro, 
and Article 15 of the Law on Tobacco (RM OG Nos. 80.04 and 05/05) obliged each manufacturer to 
produce or purchase domestically-processed tobacco to cover at least 40 per cent of the annual output 
of cigarettes and other tobacco products, and no less  than 700 tons per year.  The activity licenses 
were administered by the Ministry of Agriculture and the Ministry of Health and awarded through 
public tender (see "Trading rights").  In response to  a Member who noted that the requirement to buy 
domestically-processed tobacco appeared to violate WTO rules, the representative of Montenegro said 
that this measure had been put in place to support some 500 families who lived in disadvantaged rural 
areas and whose main source of revenue was the growing of tobacco.  She noted that a new Law on 
Tobacco was expected to be adopted soon.  The Law would abolish the requirement for each 
manufacturer to purchase at least 40 per cent of domestically-processed tobacco and would replace it 
by a limited-in-time obligation to buy a certain  quantity of domestically-processed tobacco.  The WT/ACC/SPEC/CGR/4 
Page 50  
 
 quantity had been set at 300 tons for 2008 and wo uld then be reduced annually.  The measure would 
be abolished by 31 December 2011. 
135. A Member noted that the Law on Free Zones (RM OG No. 42/04) appeared to exempt goods 
processed in a free zone in Mont enegro from customs duties and charges on the domestic component 
in such goods.  Once the component exceeded 50 pe r cent, such goods would not be subject to 
restrictions related to the foreign trade regime.  If no import duties or charges were applied in such 
instances, this provision would constitute a local c ontent requirement incompatible with Article III:5 
of the GATT 1994, and the provision would need to be abolished.   
136. In reply, the representative of Montenegro said that Article 21 of the Law on Free Zones 
(RM OG No. 42/04) stipulated that goods imported into Montenegro from a free zone were subject to customs duties, customs charges, VAT, and import r estrictions (if applicable).  Customs duties and 
charges were not payable on domestic materials and labour incorporated into the goods while in the 
zone.  Once the domestic component exceeded 50 pe r cent, goods imported from the zone were not 
subject to restrictions related to the foreign tr ade regime.  Customs duties and other charges were 
payable, but decreased according to the percentage  of domestic component in the goods.  She later 
noted that the Law had been amended to be  brought into compliance with WTO rules 
(RM OG No. 11/07).   
- State-trading entities 
137. The representative of Montenegro responded to requests for information on State trading in 
document WT/ACC/CGR/3/Add.1 (Annex 6), stating th at Montenegro had no enterprise covered by 
the provisions of Article XVII of the GATT 1994.  S ubsequently asked to list and provide information 
on any enterprise with exclusive or special right s or privileges and any State-owned or State-
controlled enterprise regardless of whether these enterprises had special privileges or monopolistic 
status, she reiterated that Montenegro had no enterprises – private or State-owned − with exclusive or 
special rights or privileges as referred to in Artic le XVII of the GATT 1994 and the Understanding on 
that Article.  Montenegro had no State trading enterprises in any sector.  Amongst the former State-
owned enterprises with a continued element of State ownership, none had "exclusive or special rights 
or privileges, including statutory or constitutional powers, in the exercise of which they influence 
through their purchases or sales the level or directi on of imports or exports",  and no privately-owned 
enterprises had such special rights or privileges.  Montenegro's State-owned enterprises acted in 
accordance with commercial considerations and in  a manner consistent with the non-discrimination 
principle, as provided for in Article XVII of  the GATT 1994.  Commercial decisions of these 
enterprises were taken through participation of the St ate in the management board of the enterprises.   WT/ACC/SPEC/CGR/4 
 Page 51 
 
 
 She noted that there were no specific laws or  regulations governing the sales/purchases of these 
enterprises.  State-owned enterprises operated under the same rules as privately-owned enterprises.  
She provided information on Montenegro's largest State-owned enterprises in document 
WT/ACC/CGR/27, page 17.   
- Free zones, special economic areas 
138. The representative of Montenegro said that fr ee zones and free warehouses were considered 
part of the customs territory of Montenegro, but business activities carried out there were subject to 
special conditions.  A free zone or free warehouse coul d be founded at or near a seaport or airport, or 
in other suitable locations.  So far, one free zone had been created – at the Port of Bar.  All kinds of 
activity could be conducted in a zone and a wa rehouse, except those prese nting a hazard to the 
environment, human health, material goods or national safety.   
139. The treatment of goods kept in free zones and free warehouses was regulated pursuant to 
Articles 167 to 181 of the Customs Law.  Both fore ign and domestic goods could enter a free zone or 
free warehouse, and no limit was set for the length of time the goods could remain there, although 
such goods could not be consumed nor used while being placed in a free zone or free warehouse.  
Exceptionally, certain domestic goods intended for expor t were subject to specific time limits, and if 
the deadline was not complied with or the goods were found to have been returned to another part of 
the customs territory of Montenegro, the Customs authorities would take action as prescribed in cases 
of failure to comply with specific conditions.  Goods could leave a free zone or free warehouse 
temporarily for processing, mounting, testing, attest ation, repair, marketing presentation, etc.  Such 
goods would have to be returned to the zone or wa rehouse (or exported) within a specified period and 
no later than one year from the date the goods were taken out of the zone or warehouse.  Upon special 
authorization of the Customs authorities, domestic goods not intended for export or processing could 
be stored in a free zone or free warehouse, but such goods would be kept separate from other goods.  
Goods entering the territory of Montenegro from a free zone without further processing were subject 
to normal customs duties and charges, internal taxes and other import restrictions, if applicable.   
140. Business activities carried out in a free zone or free warehouse were regulated according to 
the Law on Free Zones (RM OG No. 42/04).  A free zone  could be divided into several sub-zones.  
Goods entering a free zone or free warehouse and c onsumed or used in accordance with the Law on 
Free Zones were not subject to customs duty, cu stoms charges, or VAT.  The Law on Free Zones 
provided incentives to enterprises operating in a free zone.  These enterprises were not liable to pay 
profit tax or real estate tax; foreign payment ope rations were generally unr estricted and could be 
carried out through any bank in Montenegro; loans c ould be granted or accepted without restriction; WT/ACC/SPEC/CGR/4 
Page 52  
 
 labour agreements could be negotia ted freely and up to 10 per cent of the employees could be foreign 
citizens; capital investments were unrestricted a nd the repatriation of capital and profits was free; 
banks, insurance companies and other financial ins titutions located in a free zone could be wholly 
foreign-owned; a foreign citizen could acquire real estate for his/her business in a free zone regardless 
of any reciprocity provision that would otherw ise apply; and private property could not be 
nationalized or expropriated.  The benefits were not conditioned on any export performance 
requirements.  Goods processed in a free zone and s ubsequently sold in Montenegro were not subject 
to customs duty or customs charges on the domestic  component (raw materials, labour, etc.) in these 
goods.  More favourable conditions applied when th e domestic component exceeded 50 per cent (see 
"Trade-Related Investment Measures).  She added that the Law on Free Zones had been amended to 
be brought into conformity with WTO rules (RM OG No. 11/07). 
- Government procurement 
141. The representative of Montenegro said that Montenegro had enacted the Law on Public 
Procurement (RM OG No. 40/01).  The Law supersed ed all previous provisions on government 
procurement in Montenegro.  According to the Law, all public entities should take the necessary 
measures to ensure the widest possible participation on equal terms in their invi tations to tender.  The 
procurement methods laid down in Article 7 of the Law included (i) direct purchasing, 
(ii) competitive bidding, (iii) two-stage bidding, (i v) open international pre- qualification of suppliers 
for major contracts, followed by limited competitive bidding, and (v) permissi ble standardization of 
goods undertaken in compliance with the Law.  The solicitation documents should encourage open 
competition, and set forth the detailed needs, pl ace of delivery, minimum performance requirements, 
warranties, maintenance requirements and any othe r pertinent terms and conditions.  Contracts for 
goods and works should be awarded to  the suppliers offering the right quality to meet identified needs 
for the specified quantity, at the lowest calculated pr ice, and at the right time.  Any factors other than 
price that would be taken into account in the eval uation of the offers should be specified in the 
solicitation documents.  Due care shoul d be taken to ensure the confidentiality of the offers.  The Law 
did not provide preferential treatment for domestic suppliers of goods or services.  Local competitive 
bidding – open to all suppliers with their seat or  residency in Montenegro – would be considered 
when it was determined that foreign companies were  not interested or the project was too small for 
them.   
142. The appeals procedure was laid down in Article 79 of the Law.  Suppliers were invited to 
address complaints in writing to the public entity conc erned.  Unsatisfied with the response, an appeal 
should be lodged with the Public  Procurement Commission within eight days of receipt of the  WT/ACC/SPEC/CGR/4 
 Page 53 
 
 
 response.  The Public Procurement Commission was obliged to give its reply in writing within 
15 days of receipt of the appeal.   
143. She added that the Law on Public Procurement ha d been reviewed to be fully compliant with 
EU directives.  The new Law on Public Procur ement had entered into force on 29 July 2006 
(RM OG No. 46/06).   
144. Some Members asked whether Montenegro inte nded to join the Agreement on Government 
Procurement upon accession to the WTO.  In repl y, the representative of Montenegro said that 
Montenegro would consider joining the Agreemen t on Government Procurem ent within a reasonable 
period after accession.   
- Transit 
145. The representative of Montenegro said that goods in transit were governed by provisions in 
the Foreign Trade Law, the Customs Law (RM OG No . 15/03), the Decree on Implementation of the 
Customs Law (RM OG No. 15/03), and the Decree on Fees for Use of Roads for Transit of Goods across the Territory of Montenegro (RM OG No. 33/03).  Montenegro could prohibit the transit of goods banned under the legislation of the Republic of Montenegro pursu ant to the Foreign Trade Law, 
and her Government could also ban imports, temporary imports or transit of goods if the circulation of 
such goods was banned under the legislation of the country of export, origin, or destination.   
146. According Articles 19 and 20 of the Foreign Trade Law, licenses could be required for the 
transit of certain goods.  In these cases, the purpos e of such licensing would be to protect either 
human, animal or plant life or health, national security, the environment or exhaustible natural 
resources, public morals, or intell ectual property rights, or to enforce any special rules related to gold 
and silver.  Based on Article 29 of the Foreign Trade Law, the transit of goods was subject to relevant 
veterinary, sanitary or phytosanitary requirements prescribed for particular types of goods.  She 
referred to the revised Decision on Control Li st for Export, Import and Transit of Goods 
(RM OG No. 19/06) for further details.   
- Agricultural policies 
(a) Imports  
147. The representative of Montenegro said that cu stoms duties constituted the main form of 
border protection for agricultural goods.  Certain fruit and vegetables were subject to seasonal duty 
(Table 3) in accordance with the new Law on Cust oms Tariff, which had entered into force in WT/ACC/SPEC/CGR/4 
Page 54  
 
 January 2006.  She noted that Montenegro had imposed an additional levy on 124 items pursuant to 
the Decree on Special Charges on Importation of Agricultural and Food Products (RM OG Nos.61/03 
and 63/03).  However, the Decree had been abolis hed with the entry into force of the new Law on 
Customs Tariff in January 2006, and the "special  charge" had been converted to specific-duty 
elements of compound duties.  Montenegro's nomenclature counted 279 compound duties (Decree on the Harmonization of the Customs Tariff Nomenc lature for the Year 2008 (RM OG Nos. 75/05 and 
17/07)).  The Law did not grant the authorities discret ion to decide on the imposition of special levies 
or adjust such levies according to price or volume thresholds.   
148. Some 56 agricultural products were consider ed "strategic" in the sense that these were 
significant for the living standard of the populatio n and not produced in Montenegro, and these goods 
were accordingly subject to zero tariff or very lo w import duty.  Milk, fats, cooking oil, and sugar 
were considered basic commodities for human cons umption and exempt from VAT in support of low 
income households.  Excise taxes were levied on al coholic beverages and tobacco.  Tobacco was also 
subject to activity licensing.  A certain number of agricultural items were subject to import licensing pursuant to the Decision on Control List for Export, Import and Transit of Goods 
(RM OG No. 19/06).   
(b) Exports  
149. The representative of Montenegro said that Montenegro had applied an export duty of 
20 per cent on raw hides, but the export duty had been  eliminated with the entry into force of the 
present Law on Customs Tariff in January 2006.  No other agricultural product was subject to export 
duty.  Licensing requirements were applied pursuant to the Decision on Control list for Export, Import 
and Transit of Goods (RM OG No. 19/06).   
150. Montenegro had no export credit, export cred it guarantee, or export insurance programmes 
for agricultural or other products.  The Ministry of Agriculture, Forestry and Water Management 
operated a programme entitled the ''Improvement of  Market Position of Montenegrin Agriculture 
Products'' promoting domestic products at fairs and exhibitions, a campaign ''MADE IN 
MONTENEGRO'', and other promotional activities.  Montenegro sought to increase the exports of 
specific domestic products, notably early vegetabl es, lamb meat, njeguški  smoked ham, cheeses, 
wine, fish, honey, medicinal herbs and forestry products.    WT/ACC/SPEC/CGR/4 
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 (c) Internal policies  
151. The representative of Montenegro said that the agricultural sector had emerged from a 
socialist system favouring so-called "combinats" and neglecting the private sector to a market-based, 
non-interventionist policy framework applied since 2000.  The current agricultural policy focused on 
the development of sustainable agriculture perform ed by private farmers.  The budgetary support to 
the sector was modest (around €12 per capita), and more than 80 per cent of the support was allocated 
to "green box" measures.   
152. The representative of Montenegro provided  information on domest ic support and export 
subsidies in the agricultural sector in the format of document WT/ACC/4 for the period 2002-2004 in document WT/ACC/SPEC/CGR/1 of 19 April 2005.  Th e data had subsequently been updated to 
cover the period 2004-2006 (document WT/ACC/SPEC /CGR/1/Rev.1).  In addition to "green box" 
measures, support was mainly provided in the form of  direct per head payments to increase the herds 
of cattle, sheep and goats; quality breeding programme s (cattle and stallions);  artificial insemination 
(cattle and swine); beehive modernization; grazi ng incentives (cattle); premiums to increase the 
production of milk and tobacco; premiums for ca ttle and milk; production programmes (figs, potato 
seeds and olives); and production increase programme s (grass, cereals).  The support exceeded the de 
minimis  level of 5 per cent for two types of commodities onl y (tobacco and cereals – rye, barley, etc.).   
153. Some Members noted that Montenegro did not apply any export subsidies in agriculture and 
requested Montenegro to bind export subsides at zero upon accession.  The representative of 
Montenegro replied that Montenegro would bind all export subsides at zero upon accession.   
- Trade in civil aircraft 
[to be completed] 
- Textiles regime   
154. The representative of Montenegro said that Mo ntenegro did not have any special measures 
regarding trade in textiles.   WT/ACC/SPEC/CGR/4 
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 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL 
- Industrial property protection 
155. The representative of Montenegro said that th e State Union had been responsible for the 
formulation and enactment of substantive intell ectual property legislation before Montenegro's 
independence − implementation and enforcement of State Un ion laws being the responsibility of the 
Republics.  When the Republic of Montenegro ha d declared its independence in June 2006, the 
Parliament had adopted a resolution whereby all la ws enacted by the State Union of Serbia and 
Montenegro would continue to be effective and enforced in Montenegro as national laws.  The 
Republic of Montenegro was now developing its own institutional capacity.  State Union legislation in 
the area of intellectual property included the Law on Copyright and Related Rights (SM OG No. 61/04), the Law on Patents (SM OG Nos. 32/04 and 35/04), the Law on Trademarks (SM OG 
Nos. 61/04 and 7/05), the Law on Legal Protec tion of Designs (SM OG No. 61/04), the Law on 
Indications of Geographical Origin (SM OG No. 20/06), and the Law on Protection of Topographies 
of Integrated Circuits (SM OG No. 61/04).  In her view, all these laws were in compliance with the 
TRIPS Agreement.  
156. New legislation covering intellectual property ri ghts had been developed since Montenegro's 
independence.  A Law on Optical Discs (RM OG No. 2/07) had been adopted in early 2007 and 
Montenegro's criminal code and customs law had b een amended to be brought into conformity with 
the TRIPS Agreement.  In addition, new laws on plant varieties protection (RM OG No. 48/07) and 
undisclosed information (RM OG No. 96/07) had been passed in August and December 2007 
respectively.  She provided detailed information a bout the implementation of the TRIPS Agreement in 
document WT/ACC/CGR/14 of 30 May 2006. 
- Responsible agencies for policy formulation and implementation 
157. The representative of Montenegro said that the Ministry for Economic Development was 
responsible for the protection of industrial property rights and the Ministry of Culture and Media for 
the protection of copyright and related rights.  A Montenegrin Intellectual Property Office (MIPO), 
responsible for the registration of intellectual pr operty rights in Montenegro, had recently been 
established (Decree on a Manner and Organization of the State Administration RM OG Nos. 54/04, 78/04, 6/05, 61/05, 6/06, 32/06, 42/06, 56/06, 60/06, 72/06, and 6/07).  The MIPO was expected to be  WT/ACC/SPEC/CGR/4 
 Page 57 
 
 
 fully operational by July 2008.  The Ministry for Economic Development was responsible for 
overseeing MIPO's activities. 
158. A Regulation on Recognition of Intellectual Prope rty Rights, which regulated the recognition 
of all intellectual property rights registered with the Union Intellectual Property Office or the Serbian 
Intellectual Property Office (SIPO), had been adopted in September 2007 (RM OG No. 61/07).  Under the Regulation, any rights registered with the Union Intellectual Property Office or SIPO and 
pending applications filed with these Offices before  MIPO becomes operational were enforceable in 
Montenegro.  Once MIPO would be operational, all applications would have to be filed with the 
Montenegrin Office. 
159. She added that enforcement of border measures was the responsibility of the Customs 
Administration and criminal enforcement the responsibility of the Ministry of Justice. 
- Participation in international intellectual property agreements  
160. The representative of Montenegro said that M ontenegro had become a member of the World 
Intellectual Property Organization (WIPO) on 3 December 2006 and, as a successor State of the former State Union of Serbia and Montenegro, Mo ntenegro had accepted the Convention Establishing 
the World Intellectual Property Organization; the Paris Convention for the Protection of Industrial 
Property; the Berne Convention for the Protection of Literary and Artistic Works; the Madrid 
Agreement for the Repression of False or Decep tive Indications of Source on Goods; the Madrid 
Agreement Concerning the International Registration of Marks; the Protocol Relating to the Madrid 
Agreement Concerning the International Registrati on of Marks; the Hague Agreement Concerning the 
International Deposit of Industria l Designs (the Hague Act (1960) and the Stockholm Complementary 
Act (1967)); the Nice Agreement Concerning the Inte rnational Classification of Goods and Services 
for the Purposes of the Registration of Marks; th e Locarno Agreement Establishing an International 
Classification for Industrial Designs; the Lisbon Ag reement for the Protection of Appellations of 
Origin and their International Registration; th e Nairobi Treaty on the Protection of the Olympic 
Symbol; the Trademark Law Treaty; the WIPO Copyright Treaty; the WIPO Performances and 
Phonograms Treaty; the Budapest Treaty on th e International Recognition of the Deposit of 
Micro-organisms for the Purposes of Patent Procedure; the Patent Cooperation Treaty; the Brussels 
Convention Relating to the Distribution of Progra mme-Carrying Signals Transmitted by Satellite; the 
Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication 
of their Phonograms; the Treaty on the Internationa l Registration of Audiovisual Works; and the 
Rome Convention for the Protection of Perform ers, Producers of Phonograms and Broadcasting 
Organizations.   WT/ACC/SPEC/CGR/4 
Page 58  
 
 161. In response to a question about Montenegro's plans to enact legislation to implement the 
Geneva Phonograms and Brussels Satellite Conventions , the representative of Montenegro noted that 
these conventions, as all international conventions and agreements ratified by the former Federal 
Republic of Yugoslavia or the State Union, were an in tegral part of Montenegro's legal system.  These 
conventions were directly enfor ceable and prevailed over domestic legislation.  She noted that the 
Law on Copyright and Related Rights captured the ma in elements of these two conventions.  In her 
view, the implementation of these conventions did not require the adoption of any new legislation.   
- Application of national and MF N treatment to foreign nationals  
162. The representative of Montenegro said that pur suant to Article 106 of the Law on Copyright 
and Related Rights, Article 6 of the Law on Trad emarks, Article 7 of the Law on Indications of 
Geographical Origin, Article 10(2) of the Law on Lega l Protection of Design, Article 3 of the Law on 
Patents, and Article 7 of the Law on Protection of Topographies of Integrated Circuits, foreign natural 
and legal persons enjoyed the same intellectual pr operty rights as domestic na tural and legal persons 
when so provided fo r under international agreements or under the principle of reciprocity.  Upon 
accession, all WTO Agreements, including the TRIPS Agreement, and all intellectual property 
conventions and treaties to which Montenegro was a party would become part of Montenegro's legal 
system and would supersede domestic legislati on, thereby ensuring the application of national 
treatment to foreign nationals.  The only exception to this general national treatment rule was the 
requirement that foreign nationals be represented by registered agents or domestic attorneys when 
dealing with governmental bodies administering inte llectual property rights (Article 11 of the Law on 
Trademarks, Article 11 of the Law on Indications of Geographical Origin, Article 16 of the Law on 
Legal Protection of Design, and Ar ticle 4 of the Law on Patents). 
163. She added that Montenegro's legislation did not contain any specific provision on MFN 
treatment.  However, MFN treatme nt was guaranteed through the dir ect application of the WIPO 
Conventions, to which Montenegro was a part y.  Upon Montenegro's accession, the TRIPS 
Agreement would also become an integral part of  Montenegro's legal system, and the provisions of 
Article 4 on MFN treatment would then be directly enforceable. 
164. In response to a Member who invited Mont enegro to amend the Law on Copyright and 
Related Rights to incorporate explicitly the nati onal treatment principle, the representative of 
Montenegro said that the Berne Convention w as directly enforceable and took precedence over 
domestic laws and regulati ons.  In her view, the Law on Copyrigh t and Related Rights did not need to 
be amended.    WT/ACC/SPEC/CGR/4 
 Page 59 
 
 
 - Fees and taxes  
165. The representative of Montenegro said that M ontenegro was in the process of setting its own 
fees and taxes for registration of intellectual prope rty rights with MIPO.  A Law on Amendments to 
the Law on Administrative Taxes was expected to be adopted by the end of February 2008 to this 
effect.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS  
- Copyright and related rights  
166. The representative of Montenegro said that copy right and related rights were protected under 
the Law on Copyright and Related Rights of 24 December 2004 (RM OG No. 61/04).  The Law 
regulated the rights of authors of literary, scientif ic and artistic works; performers; producers of 
phonograms and videograms; broad casting organizations; and datab ase producers (Article 1).  
Copyright was provided for original intellectual crea tions, irrespective of form; artistic, scientific or 
other value; purpose; size; content; and expression (Ar ticle 2).  Literary, artistic, and scientific works 
protected included written works (books, brochures, ar ticles, translations, computer programs in any 
form, including preparatory design material and ot her); spoken works (lectur es, speeches, orations, 
etc.); dramatic, dramatic-musical, choreographic and pantomime works, as well as works originating 
from folklore; musical works, with or without word s; films (cinema and television); fine art works 
(paintings, drawings, sketches, graphics, sculptures,  etc.); works of architecture, applied art and 
industrial design; cartographic works (geographi c and topographic maps); drawings, sketches, 
dummies and photographs; and theatre plays (Article 2).  Satellite broadcasting was regulated under 
Article 28 of the Law on Copyright and Related Ri ghts, and optical discs were protected under the 
Law on Optical Discs (RM OG No. 2/07).  The Law on Optical Discs provided for fines and for the 
temporary prohibition of the ma nufacturing of optical discs and/ or production parts in case of 
infringement of intellectual property rights.   
167. Copyright arose from the moment the work was created.  Copyright protection was provided 
for the life time of the author and 70 years afte r his/her death.  The rights of performers and 
phonograms and videograms producers were protected fo r 50 years from the date of recording or first 
disclosure of the performance, the rights of broad casting organizations for 20 years from the date of 
first broadcast, and the rights of database produ cers for 15 years from the date of creation of the 
database – in the case of significant modifications of  the database contents, the term of protection WT/ACC/SPEC/CGR/4 
Page 60  
 
 could be extended for another 15 years.  Protection of  copyright and related rights was not subject to 
any acquisition or use requirements, but the Law provided for optional deposit procedures.   
168. Right holders had the exclusive right to expl oit the work and aut horize its publication, 
reproduction and circulation, including its presentati on in public, broadcast, adaptation, and rental 
(Articles 19 to 37).  Limitations to authors' economi c rights were laid down in Articles 40 to 55 of the 
Law.  The moral rights of authors and copyright holders were provided in Articles 14 to 18 of the 
Law.  Moral rights were perpetual and indivisibl e.  The economic and moral rights of a deceased 
author, with the exception of the right to publish an undisclosed work and the right to modify an 
existing work, were transferred to th e heirs of the author or, in their absence, to authors' associations 
and arts and science institutions (Article 56).  After expiration of the author's economic rights, 
authors' associations and arts and science institutions  were responsible for protecting the moral rights 
of deceased authors (Article 150).  Noting that para graph 2 of Article 150 stipulated that any person 
was entitled to protect the right of authorship an d integrity of the works of a deceased author, a 
Member questioned who would speak for the author  in case of disagreement.  The representative of 
Montenegro replied that there was no clear provision on this issue.  In her view, the heirs of the 
author, or in their absence the au thors' association or relevant ins titution, would have a predominant 
influence.   
169. In response to a question, she confirmed that  the statutory licence created in Article 53 
extended to for-profit educational in stitutions.  In her opinion, this Article complied with the concept 
of statutory licence set out in Article 9(2) of th e Berne Convention, which did not exclude commercial 
entities from the scope of such licenses.  A Member  noted that Article 54 of the Law on Copyright 
and Related Rights appeared to create a TRIPS-inc onsistent statutory licence, as any literary work 
published in a mass media could be subsequently reproduced or communicated to the public, unless 
the publisher or author expressly prohibited such  reproduction or communication.  This Member 
invited Montenegro to bring this Ar ticle into conformity with the TR IPS Agreement.  In response, the 
representative of Montenegro said that Article 54 of the Law on Copyright and Related Rights 
reflected the provisions of Article 10 bis(1) of the Berne Convention, which allowed national 
legislation to provide for free use or statutor y licence for the use of pertinent works.   
170. Asked to clarify the scope of Article 38, the representative of Montenegro explained that 
Article 38 did not establish a personal use exception, nor did it impose any statutory licence.  Article 38 gave right holders a right of compen sation for economic losses caused by the use of 
technical devices used for (unlawful) copying of co pyrighted works.  This Article entitled collective 
rights associations to levy a duty on imports or sales of such technical devices.    WT/ACC/SPEC/CGR/4 
 Page 61 
 
 
 171. In response to a Member who asked how Monten egro intended to codify into the Law on 
Copyright and Related Rights Article 18 of the Be rne Convention, which required that copyright 
protection be applied to all works which had not falle n into the public domain in the country of origin 
through the expiry of the term of protection, the representative of Montenegro noted that Article 195 
of the Law on Copyright and Related Rights provided for such protection.  Pursuant to this Article, 
copyright protection extended to all works, which at the moment of entry into force of the Law, had 
not fallen into the public domain.  Works which had fallen into the public domain could not be 
protected anew.  There was, in her view, no need for further codification of Article 18.  She added that 
the Berne Convention was directly enforceable and took precedence over domestic legislation.   
172. Questioned about the compatibility of Article  125 of the Law on Copyright and Related 
Rights relating to phonograms with Article 15 of  the WIPO Performances and Phonograms Treaty, 
the representative of Montenegro acknowledged that  the Law on Copyright and Related Rights would 
have to be amended to be brought  into conformity with paragraph 4 of Article 15 of the WIPO 
Performances and Phonograms Treaty.   
- Trademarks, including service marks  
173. The representative of Montenegro said that  trademarks, including service marks, were 
protected pursuant to the Law on Trademarks (SM OG Nos. 61/04 and 7/05).  A trademark could consist of words, slogans, lette rs, numbers, pictures, drawings, colour combinations, three-
dimensional forms, or a combination of such elem ents, as well as musical phrases that could be shown 
graphically.   
174. Applications for registration had to be file d with the Union Intellectual Property Office 
(MIPO as of 19 July 2007).  Documents to be submitt ed included the registration form; the sign to be 
protected; a list of goods and services to which the sign applied; and in the case of registration of 
collective trademarks, the general act on collective trademark which set out the conditions of use of 
collective trademarks and the measures to be taken in case of infringement of the collective trademark 
or violation of the general act.  Registration was s ubject to fees set out under the Law.  Applications 
were examined as to form and substance.  Prior u se was not a precondition for registration.  Priority 
rights for registered trademarks were set accordi ng to the filing date and the rules of the Paris 
Convention.  Registered marks were published in the Official Journal of the Union Intellectual 
Property Office (MIPO Official Journal as of 19 July 2007).  Protection was provided for ten years from the filing date, a period which could be exte nded an unlimited number of times upon payment of 
the appropriate fee.   WT/ACC/SPEC/CGR/4 
Page 62  
 
 175. Failure to use a trademark for an uninterrupted period of five years without justified reasons 
could lead to termination of the protection.  "Justified reasons" were understood to mean any 
circumstances occurring independently of the right holders' will and creating obstacles to the use of 
the trademark.  A registered trademark could be decl ared void, partly or fully, if it was determined 
that, at the time of approval, the legal conditions  had not been met.  Pursuant to Article 51, 
paragraph 1 of the Trademark Law, the IP Office, if informed – in any way and by any interested 
party – that the requirements for registration had not been met, could invalidate a trademark ex officio . 
176. The Law on Trademarks also included specific provisions on the protection of well-known 
marks.  Under the Law, a mark which was a reproduc tion, imitation, translation or transliteration of a 
well-known mark used by third persons for marki ng their goods and/or services, could not be 
protected as a trademark, if the use of such a mark w ould result in an unfair benefit or an injury to the 
distinctive character and/or reputation of the well-known mark. 
- Geographical indications, including appellations of origin  
177. The representative of Montenegro said that a ne w Law on Indications of Geographical Origin 
had been adopted on 11 May 2006 (SM OG No. 20/06).  The Law protected appellations of origin and 
geographical indications (Article 1) .  Appellations of origin were de fined as the geographical name of 
a country, region or locality, used to designate a product originating therein, the quality and characteristics of which were due exclusively or  essentially to the geographical environment, 
including natural and human factors, and which was produced, manufactured or processed within a 
specific limited geographical area (Article 3).  Geographical indications were indications that 
identified a good as originating from the territory of a specific country, region or locality within such 
territory, where a quality, reputation or other charact eristic of the good could be essentially attributed 
to its geographical origin (Article 4).   
178. Applications for registration of appellations of origin and geographical indications had to be 
filed with the Union Intellectual Property Office (MIPO as of 19 July 2007).  Documents to be 
submitted included the registration fo rm, data on the geographical area a nd, in the case of appellations 
of origin, a report on the method of production and the qualities and characteristics of the product.  
Natural and legal persons wishing to use a geographical  indication or an appellation of origin had to 
file an application with the Union Intellectual Property Office (MIPO as of 19 July 2007) for 
recognition as an authorized user.  Applications for recognition as an authorized user had to be 
accompanied by a proof of activity and, in the case of appellations of origin, by a product control 
certificate.  Applications for registration of appe llations of origin and geographical indications, and 
appellations for recognition as an authorized user we re examined as to form and substance.  Approved  WT/ACC/SPEC/CGR/4 
 Page 63 
 
 
 appellations of origin and geographical indicatio ns and recognitions of authorized users were 
published in the Official Journal of the Union Inte llectual Property Office (MIPO Official Journal as 
of 19 July 2007).  The validity of appellations of origin and geographical indications was not limited 
in time.  The right to use an appellation of origin  or a geographical indication was granted for three 
years from the date of entry of the authorized user in the appropriate registry.  This right could be 
renewed an unlimited number of times upon submi ssion of new applications for recognition.  
Registration of appellations of or igin or geographical indications and recognition as an authorized 
user could be declared void if it was determined th at, at the time of approval, the legal conditions had 
not been met or, in the case of recognition as an aut horized user, that the conditions for recognition 
had ceased to exist.  Registered appellations of or igin and geographical indications ceased to be valid 
when protection in the country of origin elapsed, and registered geographical indications could be 
annulled by court decision if it was established th at a geographical indication had become a generic 
name. 
179. A Member was concerned that the provisions of Article 14 of the new Law requiring foreign 
applicants to submit documents proving the appli cant's right to the geographical indication in the 
country of origin could be used to deny protecti on to applications from countries with a different 
system of protection.  This Member sought confir mation that certification mark registrations or non-
official documents such as affidavits were accep ted as evidence of protection.  In response, the 
representative of Montenegro explained that Article 14 allowed foreign persons to file an application 
if the appellation of origin or geographical indication was recognized in the applicant's country of 
origin, irrespective of the registration system a pplied in that country.  Thus, certification mark 
registrations and affidavits were accepted as ev idence of protection.  Owners of geographical 
indications could provide their own affidavits att esting protection in the country of origin, provided 
such documents were considered sufficient to prove the existence of a right in the country of origin. 
180. Asked to explain the rationale of Article 7 which excluded from protection geographical 
indications for wines identical to the name of a variet y of grape that existed in the territory of Serbia 
and Montenegro before 1 January 1995, the representa tive of Montenegro replied that Article 7 of the 
Law was consistent with Article 24.6 of the TRIPS Agreement.   
181. Noting that Article 46 prohibited the transfer of rights, licence agreements, pledges, 
franchises or the like of geographical indications  and relevant trademarks, a Member invited 
Montenegro to explain the effect of such a provision on geographical indications originating in a foreign country where such transactions were not pr ohibited, and the result if such a transaction was 
effected.  In response, the representative of Mont enegro explained that Ar ticle 46 applied only to WT/ACC/SPEC/CGR/4 
Page 64  
 
 domestic geographical indications a nd appellations of origin.  Artic le 46 had no effect on foreign 
geographical indications, including those originating in a country where such transactions were not 
prohibited.  She added that if such a transac tion was made, it would be declared void and the 
geographical indication or appellation of  origin would not be cancelled.   
182. A Member noted that Article 44 of the new Law did not seem to protect the rights of 
trademark owners as required by Articles 16.1 an d 24.5 of the TRIPS Agreement, as it appeared to 
allow for a geographical indication to be registered even in case of conflict with a prior trademark 
which could result in a likelihood of confusion.  The representative of Montenegro noted that 
Article 44 referred only to geographi cal indications, not to appellations of origin.  She acknowledged, 
however, that Article 44 did not guarantee the exclusive rights of the owner of a prior-in-time trademark against a later-in-time and confusingly si milar geographical indication.  Article 44 of the 
Law would be brought into conformity with Artic les 16.1 and 24.5 of the TRIPS Agreement.  The 
amendments were expected to be adopted by the end of February 2008.   
- Industrial designs  
183. The representative of Montenegro said that industr ial designs were protected pursuant to the 
Law on Legal Protection of Design (SM OG No. 61/04).   Industrial designs were defined as the two- 
or three-dimensional appearance of a product or  part thereof whose character resulted from its 
ornamentation or special features of lines, contours, colours, shape, texture, or materials, or their combination (Article 2).  Only new industrial d esigns presenting an "individual character" could be 
registered (Article 3).  A design was considered "new" when no identical design had been made 
available to the public before the date of filing of the application for registration, or when no 
application for registration of an identical design ha d yet been filed.  Designs were deemed identical 
when they presented only "immaterial," i.e. neg ligible, differences (Article 4).  A design was 
considered to present an "individual character" when the overall impression the design produced on an 
informed user differed from the overall impression produced by any other design made available to 
the public before the date of filing of the application for registration (Article 5).   
184. Applications for registration of an industria l design had to be submitted to the Union 
Intellectual Property Office (MIPO once operational).  Registered designs were protected for 25 years 
from the filing date, provided the prescribed fees had b een duly paid (Article 11).  Registration could 
be nullified if it was proven that the required cond itions had not been met when protection had been 
granted.    WT/ACC/SPEC/CGR/4 
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 - Patents  
185. The representative of Montenegro said that the Law on Patents (SM OG No. 32/2004) 
protected inventions under two regimes, the patent  regime and the petty patent regime.  Patents 
protected inventions which were new, involved an inventive step, and were industrially applicable 
(Article 2).  Petty patents protected inventi ons with a lesser level of inventiveness.   
186. Applications for registration of a patent had to  be filed with the Union Intellectual Property 
Office (MIPO once operational).  Documents to be submitted included the registration form, a 
description of the invention, one or more claims for protection of the invention through a patent or a petty patent, any drawings referred to in the descrip tion and claim(s), an abstract of the description, 
and proof of payment of the prescribed filing fee.  Pa tent applications were subject to examination as 
to form and substance.  App lications having successfully passed the formal examination were 
published in the Official Journal of the Union In tellectual Property Office (MIPO Official Journal 
once MIPO would be operational).  Their substance was examined after payment of the prescribed 
examination fee.  Registered patents were published in the Official Journal.  Priority rights were 
established according to the filing date or, if applicab le, to the priority rules of the Paris Convention.  
Petty patent applications were only examined as to form.  Petty patent applications were not 
published, but approved petty patents were subject to publication.   
187. Patents were granted for 20 years, non renewabl e, from the filing date.  Petty patents were 
valid for six years from the filing date, a period which could be renewed twice for two years upon 
payment of the prescribed fee.  Patents and petty pa tents could be declared void if it was proven that 
the required conditions had not been met when protecti on had been granted or that the extent of rights 
granted was broader than justified by the description of the invention.   
188. Conditions and procedures for granting compulsory  licenses were laid down in Articles 63-70 
of the Law.  Compulsory licenses could be granted in  case of refusal of the patent holder to conclude a 
licensing agreement, or of imposition of unjustif ied conditions for the conclusion of such an 
agreement.  The scope and duration of a compulsory licence were limited to the purpose for which the 
licence had been granted.  Requests for issuance of  compulsory licenses had to be submitted to the 
Ministry competent in the field in which the invention would be applied.  Decisions to grant a 
compulsory licence were subject to judicial revi ew by the Administrative Court of Montenegro 
(Article 70).  The right of the patent holder to re muneration was regulated by Article 64.  Under this 
Article, in the absence of Agreement between the part ies, the Basic Court or the Commercial Court, as 
the case may be, determined the amount of remune ration and the method of payment, taking into 
account the merits of each individual case and the economic value of the compulsory licence − basic WT/ACC/SPEC/CGR/4 
Page 66  
 
 courts had jurisdiction over natural persons and commercial courts over lega l persons and 
entrepreneurs.  In response to a Member who asked  whether remuneration decisions of basic courts 
and commercial courts were subject to judicial review as required under Article 31(j) of the TRIPS 
Agreement, the representative of M ontenegro confirmed that decisions of basic courts could be 
appealed to the Superior Court and decisions of  commercial courts to the Appellate Court.  
189. Asked to clarify the apparent contradiction be tween Article 7(2) which prohibited patents for 
surgical, therapeutic or diagnostic methods, and Ar ticle 8 which allowed pa tents of new surgical, 
therapeutic or diagnostic methods using a know n substance, the representative of Montenegro 
explained that Article 7(2) prohibited patents fo r surgical, therapeutic, or diagnostic methods, but 
allowed patents for substances or compositions used in these methods.  As for Article 8, it stipulated 
that substances and compositions for treatment by surgical, therapeutic or diagnostic methods which 
had not been used in a similar way before were patentable.  Thus, while surgical, therapeutic or 
diagnostic methods could not be protected through  a patent, substances and compositions used in 
these methods were patentable.   
190. A Member noted that Article 43, by requiring th at the subject matter of a patent application 
"constitute a technical solution of a specific problem", seemed to create a fourth requirement of 
patentability in contradiction with Article 27.1 of the TRIPS Agreement.  This Member also observed 
that Article 63 did not ensure that in the case of semiconductor technology, th e scope and duration of 
a compulsory licence should only be for public  non-commercial use or to remedy a practice 
determined after judicial or administrative process to be anti-competitive as provided for in 
Article 31(c) of the TRIPS Agreement.  In respon se, the representative of Montenegro said that the 
Law on Patents would be brought into conform ity with Articles 27.1 and 31(c) of the TRIPS 
Agreement by the end of February 2008.   
- Plant variety protection  
191. The representative of Montenegro said plant varieties were protected under the Law on 
Protection of Varieties of Agricultural and Forest Pl ants (FRY OG No. 28/2000).  This Law, however, 
did not meet international standards.  A new UP OV-compliant Law on Protection of Plant Varieties 
had therefore been adopted (RM OG No. 48/07).  Th e new law regulated the rights and obligation of 
holders of breeders' rights and the procedures for prot ection of plant varieties.  The law was applicable 
to all new, distinct, uniform, and stable plant genera and species designated by an appropriate 
denomination.  Protection was granted for 20 years fro m the date the breeder's rights had been granted 
− 25 years for trees and wines.  The new law would guarantee the application of national treatment to 
foreign nationals.  WT/ACC/SPEC/CGR/4 
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 - Layout designs of integrated circuits  
192. The representative of Montenegro said that layo ut designs of integrated circuits were 
protected under the Law on Protection of Topographies of Integrated Circuits (SM OG No. 61/04).  
Applications for registration had to be filed w ith the Union Intellectual Property Office (MIPO once 
operational).  Rights arose as of the filing date or the date of first commercial use anywhere in the 
world, whichever was first, and ceased at the end of the 10th calendar year from the date the layout 
design of integrated circuits had been created.  In  response to a question, she added that the Law did 
not provide for interim measures.   
- Requirements on undisclosed information,  including trade secrets and test data  
193. The representative of Montenegro said that th ere was no specific law protecting undisclosed 
information.  Business secrets were prot ected under the Law on Business Companies 
(RM OG No. 6/02), the Criminal Code (RM OG No s. 70/03 and 13/04), the Law on Protection of 
Varieties of Agricultural and Forest Plants (FRY OG Nos. 24/98 and 26/98), the Law on Protection of 
Topographies of Integrated Circuits (SM OG No. 62/04), the Law on Medicines (RM OG No. 80/04) and the Law on Medical Devices, but these laws did not fully meet the requirements of the TRIPS 
Agreement relating to undisclosed information.  A Law on Protection of Undisclosed Information, 
which protected undisclosed information in conformi ty with Article 39 of the TRIPS Agreement, had 
been adopted (RM OG No. 96/07).  She confirmed that this Law provided for a period of exclusivity that ensured protection of undisclosed test or othe r data relating to pharmaceutical and agricultural 
chemicals from reliance by unauthorized third parties.     
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  
194. The representative of Montenegro said that abuse of patent rights, i.e. refusal to grant a 
licence or the setting of unreasonable licensing conditions, could result in compulsory licensing.  She added that the Law on Protection of Competition (RM OG No. 69/05) included provisions on 
measures against unfair competition, monopolistic activities and limitati on of the market (Article 2). 
- ENFORCEMENT  
- Civil judicial procedures and remedies  
195. The representative of Montenegro said that civ il judicial procedures and remedies related to 
intellectual property were governed by the Law on Civil Procedures (RM OG Nos. 22/04, 28/05 and 
76/06) and Montenegro's intellectual property laws .  Civil courts had jurisdiction over civil WT/ACC/SPEC/CGR/4 
Page 68  
 
 proceedings.  However, when both parties were legal persons or entrepreneurs, or when the disputes 
arose from a commercial activity, the case was brought  before the Commercial Court.  Disputes 
involving a natural person or arising from a non-co mmercial activity were handled by the Basic 
Court.   
196. Courts had the authority to order production of evidence; award damages; issue injunctions to 
prevent further violation; and order seizure, d estruction or alteration of infringing goods, and 
materials and implements used in the creation of infringing goods.  Right holders' requests to destroy 
or alter infringing goods or materi als and implements were  always granted.  The representative of 
Montenegro noted, however, that the Law on Protecti on of Topographies of Integrated Circuits did 
not contain any provision on destruction or alte ration of infringing goods, and materials and 
implements used in their creation.  She added that  pursuant to paragraph 4 of Article 177 of the Law 
on Copyright and Related Rights, the plaintiff could, instead of requesting destruction or alteration of 
the infringing goods, ask that the goods be handed over to him.   
197. Damages were determined on the basis of direct  losses, including any lost profit, taking into 
account, in particular, the remuneration that would have been payable had the right been lawfully 
used.  When filing a case, the plaintiff had to sp ecify the amount of damages and submit evidence to 
support the claim.  If the defendant objected to th e proposed amount, damages were calculated by an 
expert appointed by the Court.  She confirmed th at compensatory damages c ould include attorney's 
fees.  Asked whether Montenegro's legislation provi ded for the indemnification of the wrongfully or 
restrained defendant in accordance with Article 48 of the TRIPS Agreement, she noted that pursuant 
to Article 154(1) of the Law on Contracts and Tort s (SFRY OG Nos. 29/78, 39/85, 45/89, and 57/89; 
FRY OG Nos. 31/93, 22/99, 23/99, 35/99, and 44/99) any person having caused an injury was required to pay compensation for such injury, unless this person proved that he /she was not guilty.   
198. Right holders could claim pre-established damages in case of infringement involving 
copyright and related rights, patents, trademar ks, and undisclosed information and trade secrets 
(Article 178 of the Law on Copyright and Relate d Rights, Article 93.2 of the Law on Patents, 
Article 57.3 of the Law on Trademarks, Article 56 of the Law on Legal Protection of Design, and 
Article 27.4 of the Law on Protection of Topographi es of Integrated Circuits).  In the event of 
intentional infringement or infringement by gro ss negligence, pre-established damages could be 
claimed up to three times the amount of "usual remune ration" that would have been paid had the right 
been used lawfully.  "Usual re muneration" was understood as the amount payable by the user of the 
right to the right holder for the lawful use of the right in the normal course of trade (retail price, 
licence fee or the like).    WT/ACC/SPEC/CGR/4 
 Page 69 
 
 
 199. Asked whether Montenegro's legislation permitted the court to order the defendant to provide 
information about third parties related to an infri ngement or to hand over documents relating to the 
infringement pursuant to Article 47 of the TRIPS Ag reement, the representative of Montenegro noted 
that Article 47 did not oblige Members to give judicial authorities the power to order an infringer to inform the right holder of the identity of third persons involved in the production and distribution of infringing goods and services.  Such a provision had been included in the Law on Copyright and 
Related Rights (Article 185), but not in the Law on Patents.   
- Provisional measures  
200. The representative of Montenegro said th at provisional measures were governed by 
Articles 182 to 184 of the Law on Copyright and Rela ted Rights; Articles 92, 94 and 95 of the Law on 
Patents; Articles 57 and 61 to 64 of the Law on Tr ademarks; Articles 60 to 63 of the Law on Legal 
Protection of Design; Articles 60 to 64 of the Law on Indications of Geographical Origin; Articles 14 
and 17 of the IPR Enforcement Law; Article 271 of the Law on Civil Procedures; and the Law on Execution Procedures (RM OG No. 23/04).  Courts could, upon request of the right holder and presentation of credible evidence of an imminent or actual infringement, order provisional measures 
to prevent infringement or to preserve relevant ev idence.  Similar provisions had been included in the 
draft Law on Protection of Undisclosed Information.  
201. Provisional measures included seizure, removal from channels of commerce of infringing 
goods, and injunctions prohibiting the continuation of  actions that could lead to infringement.  
Inspection or rooms, books, documents, databases, and examination of witnesses and experts were 
also permitted.  Provisional measures could be requested prior to an action being filed for 
determination on the merits of a claim.  Pursuant  to Article 64 of the Law on Trademarks, the court 
could order an applicant to deposit a security in the event the request was found to be groundless − no 
such provision had been included in the Law on Copyright and Related Rights.  If the court 
considered the evidence presented to support a reque st credible enough, provisional measures could 
be ordered within a few weeks − or days if circumstances permitted.  Provisional measures could be 
ordered inaudita altera parte  if there was a demonstrable risk that pertinent evidence might be 
destroyed or impossible to obtain at a later stag e.  Where provisional measures had been adopted 
inaudita altera parte , the parties affected were given notice,  in accordance with Article 50.4 of the 
TRIPS Agreement.  Appeals of provisional measures did not stay the execution of a decision on provisional measures.   WT/ACC/SPEC/CGR/4 
Page 70  
 
 - Administrative procedures and remedies  
202. The representative of Montenegro said that administrative procedures and remedies were 
regulated by Montenegro's Law on General Administrative Procedure (RM OG No. 60/03).  The 
authorities competent to take administrative action in  relation to infringement of intellectual property 
rights were the Union Intellectual Property O ffice (MIPO once operational) and Montenegro's 
Customs Administration.  Montenegro's legislati on did not provide for a second-level administrative 
authority to review MIPO decisions.  However, al l MIPO decisions could be appealed before the 
Administrative Court of Montenegro.  She added that first instance decisions of the Customs 
Administration could be contested before the Ministry of Finance.  Ministry of Finance decisions were subject to review by the Administrative Court of Montenegro.  
203. Asked to describe the circumstances in which administrative procedures and remedies were 
applicable rather than civil procedures and reme dies, the representative of Montenegro said that 
administrative procedures were applied to matters re lated to registration of intellectual property rights 
and border measures.   
- Special border measures  
204. The representative of Montenegro said that pursuant to the Regulation on Actions of the 
Customs Authority Applicable to Goods Suspect ed to be Infringing Goods (RM OG No. 25/05), 
customs authorities could, upon request of the right holder, suspend customs clearance of imported and exported goods and goods in transit suspected of violating intellectual property rights (Article 3).  
Requests for suspension of customs clearance had to be filed with the Customs Administration 
Headquarters, and be accompanied by a description of the goods sufficient to allow the customs 
authorities to recognize the goods, and a proof of the right holder's exclusive rights (Article 4).  Requests for suspension of customs clearance were s ubject to a 100 Euro fee pursuant to the Decree 
on the Types, Amounts, and Manner of Payment of Fee for Services Rendered by Customs 
Authorities (RM OG No. 66/06).  The applicant could be  requested to provide a security equal to any 
costs incurred by the suspension of the goods (Article 8 of the Regulation).  Right holders had the right to inspect the suspected goods, provided such inspection took place in the customs premises and 
under customs supervision (Article 9).  In case of evidence of a prima facie  infringement, customs 
authorities could take ex officio action (Article 11).  Customs author ities were required to inform the 
importer, exporter or owner of the goods, and th e right holder or his/her representative of the 
measures taken without delay (Articles 9(2) and 11 (2)).  Decisions on the merit of the case were 
referred to court.  Article 13 provided for comp ensation of the importer or the owner in case of 
wrongful detention of the goods and Articles 14 and 15 for the destruction and disposal of infringing  WT/ACC/SPEC/CGR/4 
 Page 71 
 
 
 goods outside the normal channels of commerce.  In  response to a question, she added that the re-
exportation of infringing goods in an unaltered stat e was not regarded as disposal outside the normal 
channels of commerce under Article 14(2).  She c onfirmed that all actions by customs authorities 
could be appealed, including ex officio  actions.   
205. Asked whether the importer had any rights in the process leading to a Customs 
Administration's decision, the representative of Mont enegro said that applications for suspension of 
customs clearance were submitted prior to importati on, while the actual importers of the suspected 
products were not known.  However,  importers were informed of the suspension decision immediately 
and were entitled to submit evidence to support their claim.   
206. Questioned about the personal use exemption forese en in Article 1(2)(3), the representative of 
Montenegro explained that this exemption was li mited to one copy only.  The Regulation on Actions 
of the Customs Authority Applicable to Goods Su spected to be Infringing Goods applied whenever 
more than one identical copy of a suspected product was imported, exported, or imported in transit.   
207. Asked whether Montenegro's legislation limite d the suspension time period to ten working 
days with a possible extension by another ten wo rking days in accordance with Article 55 of the 
TRIPS Agreement, the representative of Monteneg ro said that the Regulation provided for a 
suspension time period of 15 calendar days, renewabl e once.  She noted that the Regulation would be 
amended by the end of February 2008 to be brough t into conformity with Article 55 of the TRIPS 
Agreement.   
- Criminal procedures  
208. The representative of Montenegro said that infri ngement of intellectual property rights could 
be liable to criminal prosecution pursuant to the Criminal Code, as amended on 3 August 2006 
(RM OG No. 47/06), and Articles 19 to 26 of the IPR Enforcement Law.  Criminal procedures were 
administered by court.  The State prosecutor had the authority to take ex officio  action.  Penalties 
included fines ranging from €1,000 to  €30,000 and prison sentences of up to eight years.  The type 
and level of penalty, including imprisonment, were  determined by the court taking into account the 
specificities of each case.  She confirmed that the Criminal Code provided fo r the confiscation, or 
confiscation and destruction of infringing goods, an d materials and implements used to commit the 
offence, regardless of the level use.  Thus, the le vel of protection provided by Montenegro's Criminal 
Code exceeded the requirement of Article 61 of the TRIPS Agreement.   WT/ACC/SPEC/CGR/4 
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 209. In response to a question, she noted that Mont enegro's legislation did not prescribe the level 
of infringing activity required to initiate criminal prosecution.  Any level of  infringement could be 
subject to criminal prosecution.  
VI. POLICIES AFFECTING TRADE IN SERVICES  
210. The representative of Montenegro said that Mont enegro had traditionally been a net exporter 
of services.  Exports and imports of services had almost doubled in recent years, mainly due to the 
substantial increase in tourism services.  She pr ovided information based on the services sectoral 
classification list in document WT/ACC/CGR/3/Add.1,  Annex 7, and information on policy measures 
affecting trade in services in the format of document WT/ACC/5 in document WT/ACC/CGR/4 and Corrigendum 1.   
211. Montenegro's legislation did not impose any rest rictions on capital transactions affecting the 
supply of services, the total value of service transactions or assets, the total number of service 
operations, the total quantity of service output, or th e total number of natural persons that could be 
employed in a particular service sector.  The number of service suppliers was not subject to any limitation, but foreign persons were not allowed to  establish service companies involved in trade in 
weapons or located in some restricted areas (e .g. "frontier strip" and national parks).  Some 
restrictions or requirements also existed regarding th e type of legal entities that could be established.  
Commercial banks and companies engaged in broke rage, dealing, investment management and 
underwriting, for example, had to be incorporated as joint-stock companies.  She added that some 
service sectors, including banking, insurance, me dical, educational and transport services, were 
subject to licensing.  She provided a list of Stat e and non-State bodies responsible for issuing service 
licenses in Tables 8(a) and 8(b).  Licensing of charte r road transport was subject to reciprocity.  In 
addition, foreign persons employed in a branch  office or a business entity subject to a business 
cooperation agreement; foreign pe rsons engaged in educational activities on national and ethnic 
minorities' languages; sport professionals; and husband s, wives and children of a foreign person with 
a permanent residence permit were delivered wo rk permits in accordance with international 
agreements.   
212. The Government of Montenegro granted a numbe r of subsidies in the form of incentives for 
bus, air, rail or ship transport re lated to tourism; preferential interest rates for credits granted by 
commercial banks to the tourism sector; and partia l reimbursement of regist ration costs for private 
accommodation to stimulate the development of tourism (Law on Tourism RM OG Nos.  32/02, 41/02, 45/02, 38/03, and 11/04).  These subsidies were  granted to both domestic providers and foreign 
providers registered at the Central Register of the Commercial Court in accordance with the Law on  WT/ACC/SPEC/CGR/4 
 Page 73 
 
 
 Business Entities.  Some tax exemptions and re ductions were also granted under the Law on 
Environment to service providers for the use of clean technologies and recycling (RM OG Nos. 12/96, 
and 55/00).  She added that the fees imposed on fo reign producers of films and TV series without a 
Montenegrin partner had been abolished on 23 November 2006 (amendments to the Law on 
Cinematography RM OG Nos. 45/93 and 27/94).   
213. Legal services were regulated by the new Montenegrin Law on Legal Services 
(RM OG No. 79/06) and the Tariff on Fees and Compen sation of Costs for Performance of Attorney's 
Activities (RM OG No.18/02).  Pursuant to the new Law, which had entered into force in 
January 2007, foreign lawyers could freely provide  consultancy services on international law and 
third countries' law, but representation before admi nistrative and judicial tribunals was subject to 
reciprocity.   
214. The telecommunications sector was regulated by the Law on Telecommunications 
(RM OG Nos. 59/00 and 58/02).  However, a new law on telecommunications was under preparation.  
The draft was expected to be adopted by the Govern ment by the end of February 2008.  An Agency 
for Telecommunications and Postal Services had b een established in March 2001 as an independent 
regulatory body.  The Agency was responsible for promoting competition and access to networks, 
issuing licenses to operators, and regulating ta riffs.  Telekom Montenegro was the leading 
telecommunications operator in Montenegro.  Telekom Montenegro had been created in 
December 1998 following the sp lit of the State-owned PTT M ontenegro into postal and 
telecommunication services.  Telekom Montenegro ha d been fully privatized in March 2005, when 
the State had sold all its remaining shares  (51.1 per cent) to Matav (the Hungarian 
telecommunications company, owned by German Te lecom).  Telekom Montenegro had been granted 
a monopoly over fixed telecommunications until 31 December 2003.  All restrictions on foreign 
investment in this area had since then been elim inated.  Three companies, ProMonte, Monet, and 
MTel, provided mobile services in Montenegro.   
215. A new Law on Postal Services had been passed in July 2005 (RM OG No. 46/05).  Under the 
Law, the public postal operator Posta Montenegro ha d exclusivity over the collection, transportation 
and delivery of letters up to a certain weight and value; the collection, transportation and 
disbursement of money orders; and the collecti on, transportation and delivery of court mail and 
official letters related to administrative or judici al proceedings.  Other universal postal services could 
be provided by any domestic or foreign operator est ablished in Montenegro as a legal entity, duly 
licensed by the Agency for Telecommunications and Postal Services. WT/ACC/SPEC/CGR/4 
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 216. Insurance services were re gulated by the Law on Insurance of 11 December 2006 
(RM OG No. 78/06).  The Law provided for the es tablishment of a new Insurance Supervision 
Agency as an independent regulatory body.  The Council of the Agency had been appointed on 
3 July 2007, and the Parliament had approved the Ag ency's statute, financial plan and programme in 
December 2007.  The Agency was now fully operati onal.  All financial institutions in Montenegro, 
including insurance companies, had to be incorpor ated as joint-stock compan ies.  Foreign insurance 
companies were not subject to any restrictions.  She confirmed that all insurance companies could 
place reinsurance business abroad.  She added that a new Law on Banks was expected to be enacted 
by mid-2008.  Under the new law, foreign banks w ould be allowed to set up subsidiaries, branch 
offices or representative offices in Montenegro .  Representative offices could only perform 
preparatory activities, such as market research; they could not provide banking services.  The 
establishment of banks and representative offices was subject to the approval of the Central Bank of 
Montenegro.   
[Montenegro's initial offer of commitments on trade in services was circulated in document 
WT/ACC/SPEC/CGR/2 of 1 July 2005.  The most rec ent revised offer has been circulated in document 
WT/ACC/SPEC/CGR/2/Rev.3 of January 2008]  
 
VII. TRANSPARENCY - Publication of information on trade 
[to be completed] 
- Notifications 
[to be completed] 
VIII. TRADE AGREEMENTS  
217. The representative of Montenegro said that th e Republic of Montenegro was a party to a 
number of bilateral trade agreements on goods, servi ces, and avoidance of do uble taxation; bilateral 
investment promotion agreements; bilateral la bour-related agreements; and multilateral economic 
cooperation agreements.  She provided a list of these agreements in document 
WT/ACC/CGR/3/Add.1, Annex 8.  The State Union of  Serbia and Montenegro had also signed and 
ratified eight bilateral free trade agreements (FTAs) − seven with Montenegro's South-East European 
neighbours, i.e. Albania, Bosnia and Herze govina, Bulgaria, Croatia, FYROM, Moldova, and 
Romania, and one with the Russian Federation.  Upon Montenegro's independence, Montenegro's  WT/ACC/SPEC/CGR/4 
 Page 75 
 
 
 Parliament had adopted a resolution whereby all in ternational agreements signed by the State Union 
would continue to apply in Montenegro.  The agr eements with Bulgaria and Romania had since then 
been abolished, following Bulgaria's and Romania' s accession to the EU.  She noted that Montenegro 
was not a member of any customs union.  In respon se to a question, she added that Montenegro did 
not grant GSP treatment to any of its trading partners.   
218. The negotiation of bilateral free trade agreem ents among South-East European countries was 
based on the Memorandum of Understanding on Tr ade Liberalization and Facilitation signed on 
27 June 2001 by the ministers of foreign trade of Albania, Bosnia and Her zegovina, Bulgaria, Croatia, 
FYROM, Moldova, Romania, and Serbia and Monteneg ro under the auspices of the Stability Pact for 
South-East Europe.  The Memorandum spelled out the basic principles to be included in each FTA, including the elimination of export duties and taxes upon entry into force of the FTAs; the abolition of 
import duties and taxes for at least 90 per cent of th e value of trade between the contracting parties − 
elimination upon entry into force of the FTA for a majority of products and over a six-year period for 
the remaining goods covered by the FTA; the remo val of WTO-inconsistent quantitative restrictions 
- exemptions had to be selective and limited in time; the application of transparent and non-
discriminatory measures in the area of public procurement, government aid and State monopoly; the simplification of customs procedures; the harmonizati on of the methods for collecting statistical trade 
data; the harmonization of SPS measures with WTO a nd other relevant intern ational organizations' 
rules; greater cooperation on TBT issues; the harmon ization of local tax and banking legislation with 
EU regulations; the implementation of intellectual property rights in compliance with WTO standards; 
the liberalization of trade in services; and co mpliance of FTAs provisions on implementation of 
antidumping, countervailing, and safeguard measures with WTO rules.  A total of 28 bilateral free 
trade agreements had been negotiated, seven of which involved Montenegro .  All these agreements 
were based on WTO rules and principles.   
219. In accordance with the bilatera l free trade agreements with Albania, Bosnia and Herzegovina, 
Croatia, FYROM, and Moldova, Montenegro's trade in industrial goods with these countries had been 
fully liberalized on 1 January 2007.  Import duties on most agricultural products had been either 
eliminated or lowered, depending on the sensitivity of  the product.  Particularly sensitive agricultural 
products were subject to annual duty-free or low-dut y quotas.  Imports in excess of the agreed quotas 
were subject to normal customs duties.  She provi ded a detailed description of these agreements and 
information on trade with South-East European countries in document WT/ACC/CGR/3, pages 104 
to 112.  She added that an Agreement on Am endment and Accession to the Central Free Trade 
Agreement (CEFTA 2006) had been signed on 19 December 2006 by Albania, Bosnia and 
Herzegovina, Bulgaria, Croatia, FYROM, Moldova,  Montenegro, Romania, Serbia, and UNMIK.  WT/ACC/SPEC/CGR/4 
Page 76  
 
 CEFTA 2006 covered a number of areas not dealt w ith in the bilateral free trade agreements, 
including services, intellectual property, governme nt procurement and investment.  CEFTA 2006 had 
entered into force on 26 July 2007 in Albani a, UNMIK/Kosovo, Montenegro, Macedonia, and 
Moldova; in August in Croatia; in Se ptember in Serbia; and in Novemb er in Bosnia and Herzegovina.  
220. The bilateral free trade Agreement with th e Russian Federation had been signed on 
28 August 2000 and ratified on 9 May 2001.  The Agre ement provided for the gradual elimination of 
import duties, charges, and other equivalent measures over a five-year period − however, as of 
January 2008, trade with the Russian Federation had not been fully liberalized.  The Agreement also 
included provisions on the non-discriminatory applicati on of SPS measures; the application of rules of 
origin in accordance with the legislation of the importing country; the re-exportation of goods originating in the customs territory of the othe r contacting party – non-san ctioned re-exportation was 
prohibited; the implementation of anti-dumping, c ountervailing and safeguard measures in accordance 
with WTO rules; the protection of intellectual pr operty rights in accordance with the conventions to 
which both parties were signatories; transfers and payments – which should be free from any 
restriction; and special procedures for applying protective measures and measures for balance-of-
payment purposes for limited duration.   
221. She added that a Stabilization and Associati on Agreement (SAA) with the European Union 
had been initialled in March 2007.  The Agreemen t had been signed in October 2007 and the Law on 
the Ratification of the Stabilization and Associa tion Agreement  between the European Communities 
and their Member Countries and the Republic of Montenegro had entered into force on 9 November 2007 (Official Gazette No.007/07-1 of  2 November 2007).  The Interim Agreement had 
become effective in January 2008.   
CONCLUSIONS 
[to be completed] 
  WT/ACC/SPEC/CGR/4 
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 ANNEX 1 
Laws, Regulations and Other Information Pr ovided to the Working Party by Montenegro  
- Economic Reform Agenda;  
- Law "On Foreign Current and Capita l Operations" (RM OG No. 45/05);  
- Law "On Foreign Investment" (RM OG No. 52/00); 
- Draft Law "On Property, Chapter XII, Re gulating the Rights of Foreign Persons"; 
- Law "On Abolishment of the Law 'On Social Price Control'" (RM OG No. 27/2006);  - Law "On Protection of Competition" (RM OG No. 69/05);  - Decision "On the Promulgation of the Cons titution of the Republic of Montenegro" of 
12 October 2004; 
- Decree "On the Proclamation of the Law On General Administrative Procedure" 
(RM OG No. 60/03) of 28 October 2003; 
- Decree "On Promulgation of the Law On Administrative Disputes" (OG RM No. 60/2003) of 
22  October 2003;  
- Law "On Foreign Trade" (RM OG No. 28/04); 
- Regulation "On Implementation of the Foreign Trade Law" (RM OG No. 52/04); 
- Law "On Tobacco" (RM OG No. 80/2004 and No. 5/05); - Law "On Customs Tariff" applied from January 2006;  - draft Law on Customs Tariff - Applied Tari ff Rates of the Republic of Montenegro 
(HS 2002);  
- Applied Tariff Rates of the Republic of Montenegro (HS 1996);  
- Customs Law, including amendments (RM OG Nos. 7/02, 38/02, 72/02, 21/03, 31/03, 29/05 
and 66/06);   
- Decree "On Amendments to the Decree 'On Implementation of the Customs Law'" 
(RM OG No. 81/06);  
- Decree "On Implementation of the Cust oms Law" (RM OG Nos. 15/03 and 81/06). 
- Decree "On Implementation of the Customs La w, Rules of Origin and Customs Valuation 
(RM OG No. 15/03);  
- Decree "On the Types, Amounts and Manner of Payment of Fee for Services Rendered by 
Customs Authorities" (RM OG No. 4/07); 
- Law "On Excise Tax" (RM OG Nos. 52/01 and 12/02); - Law "On Value Added Tax" (RM OG Nos. 65/01, 12/02, 38/02, 72/02 and 21/03);  
- Decision "On Control List for Import and Export of Goods" (RM OG No. 44/04);  
- Law "On Foreign Trade in Weapons, Military Equipment and Dual-use Goods" 
(SM OG No. 7/05); 
- Decision "On Control List for Export, import and Transit of Goods" of 16 March 2006;  
- Non-Preferential Origin of Goods; Part 3 of Rules on Origin of Goods (RM OG No. 15/03);  
- List of Technical Regulations on Quality of  Food and Industrial Pr oducts Applied in the 
Republic of Montenegro; 
- "Food Safety Law" (RM OG No. 14/07); - Law "On Veterinary" (RM OG No. 11/01);  - Edict "On Promulgation of the Veterinary Law" (RM OG No. 11/04);  - Law "On Plant Health Protection";  
- Draft Law "On Plant Protection Product" of December 2007; 
- Decree No. 01-961/2 "On Promulgation of  Fertilizer Law", dated 2 August 2007 
(RM OG No. 48/2007); 
- Criteria for Establishing of Health Condition of the Crops and Facilities, Seeds, Nursery 
Plants and Planting Material; 
- Law "On Seed Material of Agricultura l Plants, promulgated on 20 April 2006" 
(RM OG No. 28/2006); WT/ACC/SPEC/CGR/4 
Page 78  
 
 - Law "On Promulgation of the Law 'On Planti ng Material, promulgated on 20 April 2006'" 
(RM OG No. 28/2006); 
- Decision "On Establishing the Accreditation Body of Montenegro" (RM OG No. 21/07); - Draft Regulation "On the Procedure for Notification of Sanitary and Phytosanitary 
Measures"; 
- Law "On Genetically Modified Orga nisms and related regulations";  
- Ordinance "On Undertaking the Measures to Pr event Introduction of the Animal Infectious 
Disease Bovine Spongiform Encephalopathy (BSE) in the Republic of Montenegro" (RM OG No. 23/05);  
- Decision "On the Level of Compensation for Vete rinary-Sanitary Control in the Trade Across 
the Border of the Republic of Montenegro" (RM OG No. 50/2005) of 7 July 2005;  
- Law "On Free Zone" (RM OG No. 42/04);   - Law on Copyright and Related Rights of 1 Ja nuary 2005 (Official Gazette No. 61 of Serbia 
and Montenegro of 24 December 2004); 
- Law "On Cinematography";  
- Law on Geographical Indications for the Fede ral Republic of Yugoslavia of 1 April 1995  
(Official Gazette No. 15 of the Federal Republic of Yugoslavia of 24 March 1995); 
- The Law "On Indications of Geographical Orig in" (OG of Serbia and Montenegro No. 20/06); 
- Law on Trademarks of 1 January 2005 (Official Gazette No. 61 of Serbia and Montenegro of 
24 December 2004);  
- Law on Patents of 10 July 2004 (Official G azette No. 15 of Serbia and Montenegro of 
2 July 2004); 
- Law on Legal Protection of Design of 1 January 2005 (Official Gazette No. 61 of Serbia and 
Montenegro of 24 December 2004); 
- Law on Protection of Topographies of Integrated Circuits of 1 January 2005 (Official Gazette 
No. 61 of Serbia and Montenegro of 24 December 2004); 
- Draft Plant Variety Protection Law (dated January 2006);  
- Draft Law "On Plant Variety Protection";  - Law "On Protection of Undisclosed Information" (RM OG No. 16/07); - Law "On Optical Discs";  - Law "On Enforcement of the Legislation that  Regulates Protection of Intellectual Property 
Rights" (RM OG No. 45/05); 
- Regulation "On Providing the Application of Intellectual Property Rights", dated 
20 September 2007 (RM OG No. 61/07); 
- Regulation "On Actions of the Customs Authority Applicable to Goods Suspected of 
Infringement of Intellectual Property Rights" (RM OG No. 25/05);  
- Penal Code of the Republic of Montenegro (Amendments Published in RM OG No. 47/06, on 
25 July 2006.  Effective as of 3 August 2006);  
- Penal Code of the Republic of Montenegro (RM OG No. 47/06), Criminal Offences Against 
Intellectual Property Rights (Articles 233 – 238, 271); and 
- Law "On Banks", proposal of 7 November 2007. 
  WT/ACC/SPEC/CGR/4 
 Page 79 
 
 
 ANNEX 2 
Table 4: Administrative fees and charges  
Fees Level (€) 
Tariff No. 1:  
For claims, requests, petitions, proposals and other applications 5 
Tariff No. 22:  
For written decisions approving importing, exporting or transit of explosive substances and 
items, weapons and military equipment through the territory of the Republic, per ton of freight 20  
Tariff No. 51:  
For a veterinary sanitary certificate on th e health status of export consignments 5 
Tariff No. 56:  
For a written decision determining the veterinary-sanitary requirements for importing 
consignments of animals and products, raw materials and waste of animal origin 60 
For a written decision determining the veterinary-s anitary requirements for the transportation of 
consignments of animals and products, raw materials and waste of animal origin 90 
For a written decision determining the veterinary -sanitary requirements for temporary imports, 
exports or transport of animals intended for spor ts events, fairs and exhibitions (horses, dogs, 
cats, birds, fish and similar) 60 
Tariff No. 57:  
For the issuance of approval for temporary imports of animals for breeding purposes and seeds 
and other plant reproductive organs 15 
Tariff No.58:  
For a written decision approving the importation of seeds, seedlings and planting material and 
determining the health status and variety of seeds, seedlings and planting materials being 
imported. 60 
Tariff No. 60:  
For the issuance of phyto-certificates for export and re-export of plant consignments 50 
For certificates on phytosanitary safety of seedlings  and planting material in internal circulation 50 
Tariff No. 62:  
For written decisions on authorizing a legal person for testing and determining the quality of 
seeds being exported and issuing certificates on the quality of seeds and planting material 50 
For written decisions on the prohibition of imports of seeds and planting material 70 
Tariff No. 65:  
For the issuance of export certificates for pro ducts obtained through organic production methods 20 
Tariff No. 67:  
For written decisions on the issuance of licenses for placing in circulation plant-protection means 
(pesticides) and plant-nourishment means (fertilizers) 70 
For written decisions on the renewal (revision) of licenses for placing in circulation plant-
protection means (pesticides) and plant-nourishment means (fertilizers) 70 
Tariff No. 68:  
For written decisions on approving the imports of plant-protection means (pesticides) and 
imports of active substances and concentrates for the production of pesticide end-products and 
plant-nourishment means (fertilizers) 70 
For certificates that plant-protection means (pestic ides) are not being produced in the Republic 20 
Tariff No. 69:  
For written decisions determining the fulfilment of  requirements by legal persons to place in 
circulation plant-protection means (pesticides) and plant-nourishment means (fertilizers) on 
wholesale and retail level 100 
Tariff No. 75:  
For written decisions approving placing in circulation of genetically-modified organisms and 
products derived from genetically modified organisms 50 
For written decisions determining the duration of the contained use, production and circulation of 
genetically modified organisms and products derived from genetically modified organisms 40 WT/ACC/SPEC/CGR/4 
Page 80  
 
 Fees Level (€) 
Tariff No. 77:  
For licence for imports, exports or transit of enda ngered and protected species of wild flora and 
fauna, their developing forms and parts 100 
For licence for imports, exports or transit of genetic resources of wild flora and fauna, bio-
technology and genetically-modified organisms 100 
Tariff No. 78:  
For written decisions on the issuance of approval to place in circulation medicine and auxiliary 
therapeutic and medicinal media fo r use in medicine and dentistry 50 
For written decisions on the renewal of an approval for placing in circulation medicine and 
auxiliary therapeutic and medicinal media for use in medicine and dentistry 30 
Tariff No. 79:  
For permit approving the imports or exports of medicines, auxiliary therapeutic and medicinal 
substances, healing substances and mixtures of healing substances (semi-products) for the 
production of finished medicines, auxiliary therapeutic and medicinal media, for use in medicine and dentistry 30 
For certificates that medicines and auxiliary ther apeutic media are not produced in the Republic 10 
For certificates that specific h ealth-care equipment, appliances and instruments, as well as 
appropriate spare parts and operating supp lies, are not produced in the Republic 10 
Tariff No. 80:  
For written decisions determining that enterprises and other legal and natural persons may engage 
in the production or circulation of medicines and auxiliary therapeutic medical media for use in medicine and dentistry 100 
Tariff No. 82:  
For written decisions determining legal persons and entrepreneurs for the production and 
circulation of poisons, or legal persons for performing control of poisons 170 
Tariff No. 83:  
For an application for approval to place in circulation poisons for public hygiene use 40 
Tariff No. 84:  
For written decisions approving the imports, exports or transit of poisonous substances through 
the territory of the Republic 100 
Tariff No. 85:  
For licence to import substances which harm the ozone layer 150 
For written decisions approving the transportation of  radioactive substances across the borders of 
the Republic 500 
For approval to foreign natural or legal person fo r the transit through the territory of the Republic 
of goods having properties of dangerous substances 20 per 
ton 
Tariff No. 86:  
For approvals for the production or circulation of narcotics 150 
For licence for importation or exportation of narcotics 130 
For written decisions determining legal persons that  may engage in the production or circulation 
of narcotics 150 
Tariff No. 87:  
For written decisions determining legal persons an d entrepreneurs that may produce, engage in 
circulation or use sources of ionizing radiation 100 
Tariff No. 103:  
For a request for the inspection of a consignment (of food or Articles of general use) for the 
purpose of establishing health safety of goods being imported 5 
For written decisions confirming that the consignm ent referred to in th e preceding paragraph, 
with respect to health safety, conforms to the requirements prescribed in the Republic for such 
food products or products of general use 10  WT/ACC/SPEC/CGR/4 
 Page 81 
 
 
 Fees Level (€) 
Tariff No. 104:  
For a request for the issuance of a certificate on the quality of agricultural and food products 
being imported, or exported 5 
For written decisions establishing the quality of the products referred to in the preceding 
paragraph 50 
Tariff No. 105:  
For licenses for exporting goods 30 
For licenses for importing goods 60 
For written decisions allocating quota for the exports of goods 25 
For written decisions allocating quota for the imports of goods 50 
Tariff No. 106:  
For approval of import-export customs clearance of goods wher e the goods do not cross the 
customs line 75 
For approval of compensation operations with foreign partners 75 
For approval of agency oper ations in foreign trade 90 
Tariff No. 108:  
For a customs document used for the temporary accommodation of goods 5 
Tariff No. 109:  
For written decisions (approvals) issued by the customs authorities in an administrative 
procedure:  
For written decisions (approvals) approving the opening or use of a customs warehouse 50 
For written decisions (approvals) approving ac tive or passive re-processing or processing 
procedure under customs supervision 30 
For written decisions (approvals) approving tempor ary imports with exemption in part from the 
payment of customs duties 20 
For written decisions (approvals) approving tem porary imports with full exemption from the 
payment of customs duties 10 
For written decisions (approvals) in connection with  requests for the alte ration of data in the 
Uniform Customs Declaration (JCI) on which the calculation of customs debt is based 30 
For written decisions (approvals) in connection with requests for the exemption from the 
payment of customs duties 10 
For other written decisions (approvals) issued by the customs authorities in an administrative 
procedure 10 
For written decisions issued by the customs authorities in summary procedure:  
For written decisions (approvals) on the placement  of temporarily imported navigational vessels 
under customs supervision 10 
For other written decisions (approvals) issued by the customs authorities in summary procedure 6 
Tariff No. 110:  
For a Uniform Customs Declara tion when used in customs procedures, as well as for the 
calculation of customs debt in passenger traffic 6 
Tariff No. 111:  
For the procedure under the Uniform Customs Declaration in cases when calculation and 
collection of customs debt are performed:  
(1)  up to 100 kg 5 
(2)  from 100 kg to 10,000 kg 2 
(3)  for every 1,000 kg beyond 10,000 kg 1 
Goods whose quantity cannot be expressed in kil ograms shall be subject to the payment of fee 
per unit of measurement 1 
Tariff No. 112:  
For certificates on the customs status of goods and certificates on the identity of goods 15 
For the mandatory information on the classification of goods in the Customs Tariff nomenclature 15 
For the mandatory information on the origin of the goods 15 
Tariff No. 113:  
For the issuance of certificates on direct cons ignments, €1 and €2 goods trading certificates, 
FORM-A certificates on the or igin of goods and other certificates on the origin of goods 15 WT/ACC/SPEC/CGR/4 
Page 82  
 
 Fees Level (€) 
Tariff No. 114:  
For written decisions (approvals) approving th e commencement of operation of free economic 
zones and warehouses 100 
For written decisions (approvals) approving the form and content of records kept in free 
economic zones and warehouses 30 
Tariff No. 115:  
For cancelling an ATA carnet (regulation fee) 50 
Tariff No.116:  
For the issuance of a certificate confirming that a motor vehicle fu lfils technical requirements for 
transporting goods on the basis of a TIR carnet 50 
Tariff No. 117  
For appeals against written decisions issued by customs offices in an administrative procedure 
lodged by legal and natural persons 6 
  WT/ACC/SPEC/CGR/4 
 Page 83 
 
 
 Table 7: Imports prohibited according to the Order on Ban of Import and Transit of Certain Plant 
Species and Determination of Quarantine Surv eillance for Certain Plant Species Imported for 
Growing Purposes and List of Plants  Subject to Quarantine Surveillance  
 
I.  PROHIBITED IMPORTS AND TRANSIT FOR PHYTOSANITARY REASONS 
 
Item Type of plant Object of prohibition 
1 Plants from the genus Abies, Picea, 
Pinus Pseudotsuga, Tsuga and Larix 
originating from France, Spain and non-
European countries. The ban pertains to import of the plants and parts for 
propagation of these plants, except seeds and samples of 
graft-twigs and pollen originating from non-
contaminated areas, and imported by scientific institutions dealing in selection, introduction of new 
species, varieties, lines and hybrids or plant protection. 
2. Plants from the genus Castanea and 
Quercus from all countries and genus Ulmus originating from the United States 
of America. The ban pertains to import of the plants as well as parts 
for propagation of these pl ants, except the seed of 
Quercus and Ulmus and samples of the seed Castanea 
originating in non-contaminated areas and imported by 
scientific institutions dealing in selection, introduction of new species, varieties, lines and hybrids or plant 
protection. 
3.  Plants form the genus Juniperus 
originating from the countries of Asia and North America. The ban pertains to the import and transit of plants as 
well as parts for propagation of such plants, except the seeds. 
4. Plants from the family Rosaceae (genus 
Chaenomeles, Cydonia, Crataegus, 
Malus, Photinia, Prunus, Pyrus and 
Rosa) originating from the countries of 
Asia and North America. The ban pertains to import and transit of plants as well 
as parts for propagation of such plants, except the seeds 
and plants in the stage of dormancy without leaves and 
fruit (import is permitted in the stage of dormancy and 
quarantine surveillance is applied). 
5. Plants from the genus Populus 
originating from France, Spain and non-
European countries and the genus 
Platanus originating from the USA, France, Italy, Spain, Armenia and other 
countries where the quarantine harmful 
organism Ceratocystis fimbirata f. sp. platani had been found. The ban pertains to import of plants as well as 
propagation parts of the respective plants, except the 
seeds and import of plant samples originating from non-
contaminated areas, imported by scientific institutions dealing in introduction of new species, varieties, lines 
and hybrids. 
 
6. Potato (Solanum tuberosum and 
Solanum spp.) originating from Mexico 
and countries of Central and South America. The ban pertains to import of potato for seed and 
consumption, including the wild or semi-cultivated 
clones, in particular tuber, plants with roots and parts of plants, except the real seed and cultures of tissues and 
samples originating form non-contaminated areas, and 
imported by scientific institutions dealing in introduction of new species, varieties, lines and hybrids. 
7. Coniferous wood from non-European 
countries with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in 
percentage of dry matter (designation K.D. "Kilndried" etc.) 
8. Oak wood genus Quercus originating 
from the USA, Russian Federation and Romania and chestnut wood genus 
Castenea originating from all countries, 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture expressed in percentage of dry matter.  
9. Wood from the genus Populus, Ulmus, 
Zelkova, Fraxinus and Tillia americana 
originating from non-European countries 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in 
percentage of dry matter. WT/ACC/SPEC/CGR/4 
Page 84  
 
 Item Type of plant Object of prohibition 
10. Logs and timber of the wood genus 
Platanus from the USA, France, Italy, Spain, Armenia and other countries 
where Ceratosystis fimbriata f. sp. 
Platani was determined. The ban pertains to import of logs and timber. 
11. Wood bark under ordinal numbers 7, 8, 9 
and 10. The ban pertains to import of wood bark if in the 
country of origin no disinsection and disinfection by 
fumigation or fermentation applying the prescribed method was applied. 
12. Corn stalks and sorghum straw if 
originating from the countries of Africa. The ban pertains to import and transit of corn stalks and 
sorghum straw. 
13. Soil, compost and substratum mixed with 
soil or compost, with plants or without plants, originating from the non-
European countries. The ban pertains to import of soil, compost and mixed 
substratum for which no disinfection and disinsection has been performed. 
14. Plants from the genus Fragaria 
originating from non-European countries. The ban pertains to the import of plants, except for 
seeds and fruits. 
 
 
 
 
 II. PLANTS SUBJECT TO QUARANTINE SURVEILLANCE 
 
Quarantine surveillance is prescr ibed for plants imported for propagation purposes as follows: 
 
1. Graft-twigs and pollen of the genus Abies, Picea, Pinus, Pseudotsuga, Tsuga and Larix and 
samples of the plant seed of genus Castanea a nd Quercus if the import is restricted under 
ordinal No. 1 and 2 of Exhibit A12.3; 
2. The genus Abies, Picea, Pinus, Pseudotsuga, Ts uga and Larix originating from non-European 
countries; 
3. The genus Populus and Platanus if the import is  restricted under the ordinal No. 5 of Exhibit 
A12.3; and 
4. Seed potato samples (Solanum spp.) if the import is restricted under the ordinal No. 6 of 
Exhibit A12.3. 
 
Quarantine surveillance of plants refe rred to in items 2) and 3) hereof  pertains to the entire live plant 
and their parts for propagation, except the seeds.   WT/ACC/SPEC/CGR/4 
 Page 85 
 
 
 Table 8(a) - State Bodies with a Regulatory Role in Service Activities  
Body Role 
Central Bank of Montenegro Commercial bank licensing; approval of securities issuance 
and sale of large blocks of commercial bank shares, approval 
of the auditor chosen by the commercial bank. 
Ministry of Education and Science  Licensing authority for secondary schools and universities. 
Ministry of Labour and Social We lfare Issuance of work permits. 
Ministry of Health  Issuance of approval s for compliance with health standards, 
supervision, and inspection. 
Ministry for Tourism Licensing, classifi cation, supervision, and inspection of 
tourism related services. 
Ministry of Maritime Affairs and  
Transportation Licensing of inland transport related services. 
Ministry of Environmental Protection and 
Physical Planning Issuance of permits for fulfilment of environment standards, 
supervision and inspection. 
The Securities Commission Licensing for exchanges and other activities (brokerage, 
dealing, investment management, and underwriting and 
investment consultancy). 
Ministry of Finance Licensing fo r accounting and auditing services. 
Ministry of Agriculture, Forestry and Water 
Supply  Issuance of commercial fishing licenses, approval of hunting 
permits for foreign nationals. 
The Energy Regulatory Agency Issuance of licenses for the Generation, Transmission, 
Distribution, Supply and sale of electricity; for commercial 
transport; warehousing, distribution, sale and shipment of gas, oil and oil derivatives; for market operators, 
transmission and distributive networks. 
The Agency for Broad casting Issuance of broadcasting licenses.  
The Agency for Telecommunications Issuan ce of licenses for telecommunications. 
Insurance Supervision Agency Licensing for insurance services and supervision of the 
performance insurance business. 
 
 
Table 8(b) - Non-State Bodies with a Regulatory Role in Service Activities  
Body Role 
The Bar Association Licensing (registration) of attorneys. 
The Association of Doctors Registration of medical doctors and dentists. 
The Association of Pharmacists Registration of pharmacists. 
The Association of Engineers Licensing of e ngineers and companies who are involved in 
layout and construction of facilities. 
The Association of Hunters  Registration, issuance of hunting permits for foreign citizens. 
The Veterinary Chamber  Licensing (registration) of veterinarians. 
 
 
_______________ 
 
  WT/ACC/SPEC/CGR/4 
Page 86  
 
 [Draft Decision 
ACCESSION OF MONTENEGRO 
Decision of […] 
 The [General Council] [Ministerial Conference], 
 Having regard to  paragraph two of Article XII and pa ragraph one of Article IX of the 
Marrakesh Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the 
Decision-Making Procedures under Articles IX and X II of the Marrakesh Agreement Establishing the 
World Trade Organization agreed by the General Council (WT/L/93); 
 [ Conducting  the functions of the Ministerial Conference in the interval between meetings 
pursuant to paragraph two of Article IV of the WTO Agreement;] 
 Taking note  of the application of Montenegro for accession to the Marrakesh Agreement 
Establishing the World Trade Organization dated 23 December 2004; 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of Montenegro to the WTO Agreement a nd having prepared a Draft Protocol on the 
Accession of Montenegro; 
 Decides  as follows: 
 Montenegro may accede to the WTO Agreement on the terms and conditions set out in the 
Draft Protocol annexed to this Decision. 
_______________  WT/ACC/SPEC/CGR/4 
 Page 87 
 
 
 DRAFT PROTOCOL 
ON THE ACCESSION OF MONTENEGRO 
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO "), pursuant to the approval 
of the [General Council] [Ministerial Conferen ce] of the WTO accorded under Article XII of the 
Marrakesh Agreement Esta blishing the World Trade Organization (hereinafter referred to as the "WTO 
Agreement "), and Montenegro,  
 Taking note of the Report of the Working Pa rty on the Accession of Montenegro to the WTO 
Agreement reproduced in document WT/ACC/CGR/[…], dated […] (hereinafter referred to as the "Working Party Report"), 
 Having regard to the results of the negotiati ons on the accession of Montenegro to the WTO 
Agreement,  
 Agree as follows: 
PART I -  GENERAL 
1. Upon entry into force of this Protocol pursu ant to paragraph 8, Montenegro accedes to the 
WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.  
2. The WTO Agreement to which Montenegro accedes shall be the WTO Agreement, including 
the Explanatory Notes to that Agreement, as rectified, amended or otherwise modified by such legal instruments as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments referred to in para graph [...] of the Working Party 
Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provid ed for in paragraph [...] of the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by Montenegro as if it had accepted that Agreement on the date of its entry into force. 
4. Montenegro may maintain a measure inconsistent with paragraph one of Article II of the GATS 
provided that such a measure was recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. 
PART II - SCHEDULES 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitm ents annexed to the General Agr eement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to Montenegro.  
The staging of the concessions and commitments listed in the Schedules shall be implemented as 
specified in the relevant parts of the respective Schedules. WT/ACC/SPEC/CGR/4 
Page 88  
 
 6. For the purpose of the reference in paragraph 6(a)  of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Conc essions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
PART III - FINAL PROVISIONS 
7. This Protocol shall be open for acceptance, by  signature or otherwise, by Montenegro until […]. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Montenegro.  
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
Montenegro thereto pursuant to paragraph nine to each Member of the WTO and to Montenegro.   
 This Protocol shall be registered in accordance with the provisions of Ar ticle 102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single c opy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule anne xed hereto may specify that it its authentic in only 
one of these languages. 
_______________  WT/ACC/SPEC/CGR/4 
 Page 89 
 
 
 ANNEX I 
SCHEDULE […] – MONTENEGRO 
Authentic only in the … language. 
(Circulated in document WT/ACC/CGR/…/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the … language. 
(Circulated in document WT/ACC/CGR/…/Add.2) ] 
__________