RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/23 
23 May 2007 
 (07-2112) 
Working Party on the 
Accession of Montenegro Original:   English 
 
 
 
ACCESSION OF MONTENEGRO 
 
Additional Questions and Replies  
 
 
 The following submission, dated 7 May 2007, is being circulated at the request of the Republic of Montenegro.  
_______________ 
  WT/ACC/CGR/23 
 Page i 
 
 
  TABLE OF CONTENTS 
 
 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................1  
2. Economic Policies.............................................................................................................. ........1  
(a) Main directions of the on going economic policies..................................................................1  
(c) Foreign exchange and payments system .................................................................................2  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................2  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................3  
1.  Import Regulation.............................................................................................................. .......3  
(a) Registration requirements for engaging in importing...........................................................3  
(d) Other duties and charges....................................................................................................... ...9 
(f) Import licensing procedures .................................................................................................... 9 
3. Internal policies affecting foreign trade in goods.................................................................15  
(a)  Industrial policy, including subsidy policies.........................................................................15  
(b) Technical regulations and standards ....................................................................................16  
(c) Sanitary and phytosanitary measures...................................................................................31  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................32  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................32  
(c) Geographical indications, including appellations of origin.................................................32  
(e) Patents........................................................................................................................ ..............32  
4. Enforcement .................................................................................................................... ........34  
(a) Civil judicial procedures and remedies.................................................................................34  
(b) Provisional measures ........................................................................................................... ...35 
(d) Any special border measures .................................................................................................35  
(e) Criminal procedures............................................................................................................ ...36  WT/ACC/CGR/23 
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 II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
2. Economic Policies (a) Main directions of the ongoing economic policies 
- Pricing policies
 
Question 1 
We thank Montenegro for the clarification cont ained in response to Question 2 of document 
WT/ACC/CGR/17 concerning the Law on the Abolis hment of Social Price Control.  Regarding 
the retained authority of the government of Monten egro to regulate prices for medicines, oil and 
oil derivatives and coal, please describe how Mont enegro will ensure that any price controls will 
not be applied in a prejudicial manner, consistent with Article III:9 of the GATT. 
Answer:  
Price controls on coal are imposed only on coal in tended for use in Power Plant Pljevlja.  Coal 
intended for other purposes is not under price control.   Coal Mine Pljevlja and Power Plant Pljevlja 
are in the privatization process now.  The same comp any is interested in buying both the mine and the 
power plant.  When that privatization is complete d, there will be no further price controls on coal.  
Oil companies may not sell oil derivatives in Mont enegro at prices higher than the maximum retail 
price.  The maximum retail price for oil derivatives is based on: 
- prices on the international market (Platt's quotations); 
- market premiums which are applied on Platt's quotations; 
- exchange rate and conversion from US$ to € and from metric tons to litres; 
- customs, import fees and other taxes on oil derivatives; 
- costs and margins; 
- costs of import and bank's fees; 
- cost of distributions, storages and handling; and 
- costs of wholesale and retail. 
This price control policy for oil and oil derivatives is applied equally to both domestic and imported 
oil and oil derivatives.  
We are still working on a draft Decree on Prices for Medicines, in which we will provide equal 
treatment of both domestically produced and imported medicines.  It is important to stress that the 
prices of only those few medicines that are covere d from the health fund are controlled.  Prices for 
other medicines are not under control and costs for their purchase are not reimbursed to buyers. 
In sum, with respect to price controls Montenegro will fully comply with all relevant WTO 
Agreements.  
Question 2 
We look forward to reviewing the decree regula ting the price of medicines, mentioned in 
response to Question 3 of document WT/ACC/CGR/17. WT/ACC/CGR/23 
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 Answer:
 
We will submit the requested text prior to the next Working Party meeting.  
Question 3 
Regarding the response to Question 5 of docu ment WT/ACC/CGR/17, is our understanding 
correct that the government controls the price of  only the domestically-produced coal to the 
Power Plant Pljevlja?  Therefore the government does not set the price of coal to any other 
purchaser, nor the price of imported coal to the Power Plant Pljevlja, correct?  Does the Power 
Plant Pljevlja purchase imported coal?  Is it authorized to purchase imported coal? 
Answer:  
Your understanding is correct.  The Government of  Montenegro control prices only of domestically 
produced coal to the Power Plant Pljevlja.  Pric es of imported coal are not controlled as well and 
prices of coal for other purchasers.  Power Plant Plje vlja is authorized to buy imported coal, but in 
practice that's rare situation since domesti cally produced coal cover their needs.  
(c) Foreign exchange and payments system 
Question 4 
We understand that the Government of Montenegro is engaged in discussions with the 
International Monetary Fund on aspects of their financial and foreign exchange system.  An 
efficient and transparent monetary and foreign  exchange system can facilitate trade and 
contribute to economic development.  We urge Mo ntenegro to prepare to  come into compliance 
with WTO rules, including Article XV of GATT and Article XI of GATS, and factor this into their discussions with the IMF.  We look forwar d to reviewing Monteneg ro's foreign exchange 
regime following its discussions with the IMF.   
Answer:
 
Montenegro is currently in the process of negotiating its status with the IMF. Issues related to 
Article XV of GATT and Article XI of GATS will not be important in these negotiations, because 
Montenegro uses the Euro as its sole currency.  Under the Law on Current and Capital Transactions, 
there are no any restrictions whatsoever in these areas.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
Question 5 Thank you for providing the revised Legislative Action Plan (document 
WT/ACC/CGR/12/Add.1).   In addition, we tha nk Montenegro for providing drafts for review 
by the Working Party.  We encourage Montenegro to continue this practice of providing drafts 
of legislation, including implementing regulatio ns and/or by-laws, so that the Working Party 
can review them for conformity with WTO rules.   
Answer:
 
Montenegro will continue to provide drafts of  legislation to the Working Party regularly.   WT/ACC/CGR/23 
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 IV. POLICIES AFFECTING TRADE IN GOODS 
1.  Import Regulation (a) Registration requirements for engaging in importing Question 6 We are concerned about Montenegro's regim e governing trading rights.  A fundamental 
principle of the WTO is the right to import  (and export) products without establishing a 
subsidiary or physical presence.   (It is important to  note that the right to import is separate and 
distinct from the right to distribute products with in Montenegro.)  It is of no consequence that 
this requirement applies "equally" to both domestic and foreign suppliers because, by 
definition, domestic suppliers will have an est ablished presence in Montenegro whereas foreign 
suppliers will not, and thus, the establishment requirement is an unnecessary obstacle to 
importation by foreign suppliers.  Such obstac les have failed to survive scrutiny by GATT 
dispute settlement panels.  Montenegro is pe rmitted to establish a registration requirement, 
provided that the registration process is simple and automatic.  Montenegro is also permitted to 
maintain an activity licence regime, again, provided the process is simple and 
non-discriminatory.  It is, however, a violat ion of GATT Articles III and IX to require an 
investment in order to import.   
Answer:
 
Montenegro is aware of the problem and w ill amend the Customs Law appropriately.   
Question 7 
In response to Question 19 of document WT/ACC/CGR/17 and Question 36 of document 
WT/ACC/CGR/10, Montenegro explains that  pharmaceutical companies must establish a 
subsidiary in Montenegro in order to import into Montenegro.  While we fully appreciate the 
need for adequately protecting consumers of pharmaceutical products, we fail to see how the 
establishment of a subsidiary furthers this ob jective, nor do we understand the "international 
best practices" to which Montenegro refers.   
Please explain how Montenegro intends to br ing this requirement into conformity with 
Articles III and XI of the GATT 1994. 
Answer:  
Montenegro is preparing amendments to relevant le gislation that will provide trading rights in full 
conformity with GATT Articles III and XI.   
Question 8 
Please describe, and provide a cite to, the "international best practices" to which Montenegro 
refers.  
Answer:  
Please see the answer above.    WT/ACC/CGR/23 
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 Question 9 
In response to Question 22 of document WT/ACC/CGR/17, concerning the requirement of a 
physical presence in Montenegro in order to im port, Montenegro states that "All entities 
engaged in import, domestic and foreign, have to be registered."    
Does registration require a physical presence in Montenegro?   
Answer:
 
No.  Under expected amendments to current legisl ation, registration at customs will be required in 
order to import, but that registration will not require physical presence. 
Question 10 
If so, please explain the rationale behind re quiring a physical presence in Montenegro.  
Answer:  
Please see the answer above.  
Question 11 
How does Montenegro define a "physical presence"?    
Answer:  
Registration of a company in Montenegro requires ph ysical presence in the sense that a local company 
address and the address of a registered representative upon whom process may be served must be provided.   
Question 12 
Is a minimum level of investment required in order to satisfy the "physical presence" 
requirement? 
Answer:
 
No.  
Question 13 
GATT Article III requires that imported product have access to the same distribution channels 
as domestic products.  How does Montenegro ensure compliance with this obligation?   
Answer:  
All laws governing trade of goods in Montenegro provide equality and do not discriminate between 
imported and domestic goods.  The Customs Law prescribes that after duties are collected, imported goods are treated same as domestic goods. There is  no discrimination in distribution between 
domestic and imported goods once th ey undergone the importation procedure.  The Law on Foreign 
Trade guarantees national treatment for imported goods.   WT/ACC/CGR/23 
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 Question 14 
Montenegro has explained that individuals can register as entrepreneurs, and thereby be 
permitted to import.  Can foreign persons re gister as entrepreneurs?  If a foreign person 
registers as an entrepreneur, must they establis h a physical presence in Montenegro in order to 
import?  How does a foreign natural person es tablish a physical presence?  Can entrepreneurs 
import (separate and distinct from distributing) products for wholesale?   
Answer:  
A foreign natural person could register as an entrep reneur, which provides the right to import for retail 
purposes and engage in retail trade, but would have to be physically present in and have residence 
rights in Montenegro to do so. Entrepreneurs can neither import nor distribute products at the 
wholesale level.   
Question 15 
In response to Question 23 of document WT/ACC/CGR/17, Montenegro explains that a firm 
must be registered at the Central Register of th e Commercial Court in order to import.  What 
information must be provided in this registr ation?  Does the Commercial Court have the 
authority to reject a registration?   
Answer:  
Individual entrepreneur is registered when he/she  submits the registration a pplication which contains 
following data: 
- The name and the last name of the entrepreneur; 
- His personal ID number; 
- Name of the entity (if different of the personal name of entrepreneur); 
- The address of the entrepreneur; 
- Description of the activity of the entrepreneur; and 
- The signature of the entrepreneur. 
A limited partnership is registered when the stat ement on establishment or the contract signed by all 
partners is submitted to the Central Register of Comme rcial Court.  That statement or contract has to 
contain the following data:  
- The name of the partnership and confirmation th at the partnership is established as a limited 
liability partnership; 
- The address of the partnership; 
- The period for which the partnership is establis hed and the date of the beginning of work; 
- The name, last name and the personal ID num ber of each partner in the partnership; 
- The name of each person who has a stat us of limited liab ility partner; and 
- The share of limited liability partners and statement whether their share is in money or in 
other form of capital. 
A Joint Stock (JS) company is registered when the company submitted to the Central Register of 
Commercial Court following documents and data: 
- The contract establishing the company; 
- Statute; WT/ACC/CGR/23 
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 - The list with names of members of the Board of Directors, their place and date of birth as well 
and their personal ID numbers; 
- Permanent address or residence of members of the Board of Directors; 
- Statement of members of Board of Directors about their citizenship; 
- Occupations of members of Board of Directors; 
- Data about their membership in other boards, other positions in Montenegro or outside of 
Montenegro, as well and place of registration of these other companies, if they are not registered in Montenegro; 
- The names and the addresses of the executive director, secretary of the company and the 
auditor; 
- The name of the company and its address for official communication, i.e. the corporate 
headquarter; 
- Signed statements of all members of the Board of Directors, executive director, secretary of 
the company and the auditor of the company in  which they confirm acceptance of functions 
on which they are appointed; 
- Decision of the Securities Commission approving prospect for public offer of stocks; and 
- Proof on payment of administrative fee. 
Registration fee for the entrepreneur, Limited Liab ility Company and partnership is €10, while fee for 
the JS is €50.  
The Central Register of Commercial Court is oblig ed to register every entity if they submit all 
abovementioned documents. The registration can be  rejected for following reasons only: if all 
documents required for registration of a particular type of entity fail to be submitted; if there is 
another entity registered under the same name; if th ere is a clear violation of some other regulation 
(for example, if someone wants to register a company for trade in narcotics) and if all data required for registration of a particular type of the entity are not provided.   
Registration is renewable under same conditions requir ed for initial registration, except the fee for 
renew of the registration is €1 for each type of entity.  
Question 16 
Does Montenegro require an activity licence of any sort (i.e., a licence to manufacture, to 
warehouse, or distribute) in order to import any products?  If so, please list the activities that require a licence and the requirements. 
Answer:
 
We provided that information in our replies that we re sent after the I Working Party meeting, but we 
are gladly repeating the information.  
Tobacco:  Manufacturing and wholesale and retail trad e in tobacco products may be pursued only by a 
company or entrepreneur that is licensed and re gistered in accordance with the Law on Tobacco.   
Public tenders for licenses for tobacco products manu facturing are implemented by the administrative 
authority for tobacco, taking into account the fiscal interest, situati on on the market, and previously 
assumed commitments of the Republic of Montenegro re lated to the tobacco products manufacturing.    
To be eligible to participate in such a tender a company or entrepreneur must: 
- be able to carry out all phases of production from the preparation of tobacco to manufacturing 
of cigarettes and other tobacco products and their packaging;  WT/ACC/CGR/23 
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 - have facilities to manufacture a minimum annual output of 1,500,000,000 cigarettes; 
- have facilities to manufacture other tobacco pr oducts (cigars, cigarillos, cut tobacco, pipe 
tobacco, chewing tobacco, and snuff tobacco); 
- have a suitable laboratory for tobacco products analysis and quality control; 
- have suitable premises complying with the prescribed requirements for production or 
circulation of the articles of general use; 
- employ suitable skilled work force in manufacture and quality assessment; 
- commit to produce or buy domestic processed t obacco sufficient for at least 40 per cent of 
their annual production of cigarettes and other to bacco products, and not less than 700 tons a 
year; and 
- offer a realistic estimate of annual output of cigarettes and other tobacco products according 
to the suitable quality and quan tity and in accordance with th e situation on the market. 
Compliance with the requirements set above is determined by the administrative authority for 
tobacco, which, upon the advice of the Ministry in ch arge for agriculture and the Ministry in charge of 
health, decides on granting the licen ce to a company or entrepreneur. 
The licence of a company or entrepreneur ceasing to comply with these requirements may be revoked.   
An application for a licence for wholesale trade in  tobacco products must include evidence that the 
applicant:  
- has available orderly storage of at least 30 tons of cigarettes and other tobacco products; 
- has appropriate means of transport, which must be visibly marked, so that from its 
warehouses it may regularly supply retailers; and 
- has entered into a preliminary Agreement on su pply of tobacco products  with a registered 
manufacturer or importer of tobacco products. 
A licence for wholesale trade in tobacco products requi res a fee of €150,000, which is revenue to the 
budget of Montenegro and may be paid in five equal annual instalments. 
A registered importer who meets the requirements may be granted a licence for wholesale trade.    
If such importer engages solely in importation of ot her tobacco products (cigarillos, cut tobacco, pipe 
tobacco, chewing tobacco, and snuff tobacco), the fee for obtaining the licence is payable in the 
amount of €30,000 which can also be pa id in five equal annual instalments. 
The company and/or entrepreneur that are grante d licence to engage in tobacco product wholesale are 
entered in the Register of Tobacco Product Wholesalers.  
The administrative authority for tobacco decid es on revoking the licence from the tobacco product 
wholesaler which does not fulfil any longer the requi rements described above, or from the one which, 
pursuant to its own decision, ceases to pursue wholesale trade in tobacco products, or fails to pay the 
subsequent instalment of the licence fee.  
The licence may be also revoked from the tobacco produc t wholesaler if it is punished for offence in 
wholesale trading in tobacco products and/or if th e person authorized to represent the company and/or 
entrepreneur has been punished for criminal offe nce of unauthorized trade in cigarettes and other 
tobacco products.  
The tobacco product wholesaler sells tobacco products  exclusively through a tobacco product retailer 
who has been granted licence under the Law on Tobacco.  WT/ACC/CGR/23 
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 The wholesaler in cigarettes and tobacco products, and/or the importer determine retail prices and 
notify the administrative authority.  
A company and/or entrepreneur applying for a licen ce for retail trade in tobacco products must show:  
- that it has entered into preliminary Agreement on the supply of tobacco products with tobacco 
product wholesalers;  
- that it has the facilities which satisfy sanitary, health and other conditions in accordance with 
the law on sanitary control; and 
- that it has no outstanding obligations in respect of public revenues.  
A licence for retail trade in tobacco products shall not  be granted to an applicant who, within a three-
year period preceding the application, was found guilt y of unauthorized trade in cigarettes and other 
tobacco products.   
The administrative authority must decide on a licence application within 30 days. 
A fee of €100 per sales outlet needs to be paid in or der to obtain a retail licence valid for two years.  
Energy:  The Law on Energy prescribes that the Energy Regulatory Ag ency issues licenses for 
activities related to energy sector facilities, networks  and equipment for the generation, transmission, 
distribution, supply and sale of energy.  Any foreign or domestic entity may apply to the Agency for a 
licence. 
The Agency issues licenses b ased upon the following criteria: 
- harmonization of facilities, energy network, inst allations and equipment with the conditions 
and standards; 
- protection of public health and safety; 
- protection of the environment; 
- land use and sitting; 
- use of public property; 
- energy efficiency and conservation of electricity; 
- the nature of primary energy sources; and 
- the technical, economic and financial capabilities of the applicant. 
Medicines and Medical Devices:  Licenses and approvals for import of medicines and medical 
devices are issued by the Ministry of Health in accordance with the La w on Medicines (RM OG 
No. 80/04). Legal persons licensed by the Agency for Medicines may engage in wholesale trade in 
medicines, including import and export. Trade is limit ed to medicines that have a trade authorization, 
unless the Agency for Medicines approves and determines the volume of supply, import or export of a 
medicine without a trade authorization.   
In order to be licensed for wholesale trade in medicines, a legal person must meet certain 
requirements established by the Agency for Medicines with respect to facilities, trained personnel, and 
record-keeping. The Agency may take up to 90 days to act on a licence application. Licenses are 
issued for an unlimited period of time, but may be revoked for cause.   
Also, draft Law on Fertilizers and the draft Law on Pesticides prescribe cond itions for activity licence 
required for engagement in production and trad e of these products.  We will submit detailed 
information about these activity licenses pr ior to next Working Party meeting  WT/ACC/CGR/23 
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 The Law on Seeds and the Law on Planting Material al so require inscription in registers of importers, 
producers or/and wholesalers and retailers of seeds a nd/or planting material.  We sent these laws in 
December 2006 for review, but we also described c onditions for inscription in these registers in our 
answers to comments on Certain Montenegrin Legislation.  
(d) Other duties and charges 
Question 17 
Please provide a copy of Decision on the Amount  for Fee for Veterinary-sanitary examination of 
animals, products, raw materials and waste of animal origin in production and circulation 
(RM OG No. 51/03, 56/03).   
Answer:  
 We provided a copy of the requested legislation,  but please note that as we informed you, Decision 
on the Amount for Fee for Veterinary-sanitary exam ination of animals, products, raw materials and 
waste of animal origin in production and circula tion (RM OG No. 51/03, 56/03) which you refer in 
your question is not valid anymore. That Decision  is replaced with 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) which was sent to th e Secretariat in May 2006, but we will gladly 
resend the text of the Decision again.  
Text of the Decision on the Level of Compensati on for Veterinary-Sanitary Control in the Trade 
Across the Border of the Republic of Monteneg ro (RM OG No. 50/05) can be obtained through 
document WT/ACC/CGR/23/Add.1. 
(f) Import licensing procedures 
Question 18 
In response to Question 32 of document WT/ACC/C GR/17, Montenegro states that in 2005 it 
passed a Law on Waste Disposal that abolished th e previous requirement of a showing that the 
imported waste of a particular quality did not exis t in the domestic market.  Please describe how 
this Law eliminates the "discrimination between  domestically produced waste and imported 
waste".  For example, is there no longer a requi rement that certain documentation be submitted 
for a licence, or is there no longer a licensing req uirement at all?  Also, please explain why the 
Law does not go into effect until 1 November 2008.  Does Montenegro not hope to accede to the 
WTO before that date? 
Answer:  
Under 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), which was enacted on the basis of The 
Law on the Basis of Environment Protection (FRY OG No. 24/98), an importer of waste has to submit, along with other documents, a "statement of the processor that the imported waste of a particular quality does not exist in the domestic market  circulation in the required quantities".  That is 
the only provision that discriminates between domest ically produced waste and imported waste.  This 
provision will be abolished by the date of accession to the WTO. 
Montenegro hopes to accede to the WTO before 1 November 2008.  Implementation of the Law on 
Waste Disposal has been delayed because that Law requires every municipality to have a sanitary land 
field, which requires certain financial assets and time for construction.   WT/ACC/CGR/23 
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 Question 19 
In response to Question 39 of document WT/ACC /CGR/17, Montenegro stated that it would 
amend the Foreign Trade Law to add provisions on automatic and non-au tomatic licenses.  In 
addition, all by-laws deriving from the Foreign Tr ade Law, notably the Decision on Control List 
for Export, Import and Transit of Goods, will be amended in order to reflect this amendment in 
the Foreign Trade Law.  According to the Legislative Action Plan (document 
WT/ACC/CGR/12/Rev.1), this process will be complete by March 2007.   
Please update the Working Party on this process and when we can expect to receive a copy of 
the revised documents. 
Answer:
 
Montenegro has finished amendmen ts to the Foreign Trade Law.  These amendments will be provided 
to the Working Party prior to the next meeting.  
The Law on Amendments and Modifications of th e Law on Customs Tariff with HS 2007 was passed 
by the Parliament in March 2007.  Montenegro is  in the process of preparing amendments to the 
Decision on Control List for Export, Import and Transit of Goods based on this Law and on 
amendments to the Foreign Trade Law. The revised  Decision will be provided to the Working Party 
prior to the next meeting. 
Question 20 
With the new authority to issue automatic licenses,  does Montenegro plan to convert some of its 
non-automatic licenses to automati c licenses?  We look forward to discussing that regime with 
Montenegro.  
Answer:  
Montenegro is in process of converting some of  its non-automatic licenses to automatic licenses in 
amendments to the Decision on Control List. More detailed information will be provided prior to the 
next Working Party meeting. 
Question 21 
In response to Question 40 of document WT/ACC/CGR/17, Montenegro promised to submit 
detailed information on a number of import licenses issued by each ministry with tariff items, as 
well as total value of goods imported subject to licenses.  We look forward to receiving this 
information.   
Answer:  
Montenegro will submit detailed information on a number of import licenses issued by each ministry 
with tariff items, as well as total value of goods im ported subject to licenses prior to the next Working 
Party meeting.    WT/ACC/CGR/23 
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 - Import Licensing Questionnaire (WT/ACC/CGR/18) 
Question 22 Thank you for the revised Import Licensing Questionnaire (WT/ACC/CGR/18).  We found the 
information very helpful.     
In response to item III.3 in each section, concerning consequences of having a licence 
application refused, Montenegro states that a pplicants who are refused a licence are informed 
in writing and have a right to lodge a complaint against the decision of the ministry to the Administrative Court of Montenegro.   
Please describe what is meant by "ordinary criteria"?   
Answer:
 
"Ordinary criteria" means all documents that im porter has to submit based on the Law on Foreign 
Trade and on the Decree for Implementation of th e Law on Foreign Trade, which are adduced in 
Exhibit I–V of Import Licensing Questionnaire (WT/ACC/CGR/18).  
Question 23 
What type of discretion does each Ministry a pply in approving or disapproving a licence?  
Answer:  
There is no discretion in approving or disapprovin g a licence; if an application meets the criteria 
prescribed in the Law on Foreign Trade and in Decree for Implementation of the Law on Foreign Trade, it must be approved. 
Question 24 
Does this notification of refusal include inform ation on how to make an appeal and give an 
indication of the circumstances under which appeals will be considered?   
Answer:
 
Licenses issued by each Ministry include informati on on how to make an appeal and the deadline for 
lodging of the latter in accordance with the Law on General Administrative Procedure.  
Question 25 
How long does the appeal process typically take? Answer:
 
The appeal process takes about one or two months.  
Question 26 
In responses to items VI.2. in each secti on, concerning the documentation required upon 
importation, Montenegro includes in the docu ments to be presented at importation "… 
certificates and, where required, other certificat es – origin, conformity, veterinary, health, 
quality, phytosanitary)." WT/ACC/CGR/23 
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 What is the difference between the first "certificates" mentioned and the "other certificates" 
that must be presented "where required"? 
Answer:
 
There is no difference; we apologize for the awkwar d language used.  Furthermore, Montenegro is 
going to abolish all certificates other than a import licence for products that are on the licensing 
regime, except for a certificate of origin when required for preferential treatment.   
Question 27 
Please describe these certificates (in both categori es) and identify the Ministry from which the 
certificate is obtained. 
Answer:  
Please see the answer above. 
Question 28 
How does an importer know what certificates are required?  Is it listed in Montenegro's tariff 
code?  The need for a certificate does not appear to be mentioned in the Decision on Control 
List for Export, Import and Transit. 
Answer:  
Please see the answer above. 
Question 29 
If an importer obtains the necessary conformity , veterinary, health, quality or phytosanitary 
certificate, why is an import licence require d in addition?  Please describe the different 
objectives of these documents as they appear duplicative.  
Answer:  
Please see the answer above. 
Question 30 
If, as Montenegro has promised, quality standa rds will no longer be imposed at the border, 
what are the "quality" certificates referred to in this response?   
Answer:  
Please see the answer above. 
Question 31 
Why does Montenegro require a certificate of origin?  For non-preferential imports, the 
country of origin should be simply a matter of self-declaration.    WT/ACC/CGR/23 
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 Answer:  
For details on preferential treatment certificates please see the answer above. For non-preferential 
imports Montenegro doesn't require a certificate of origin.  
Question 32 
In response to item VII.1. in each section, concerning the period of validity of licenses, 
Montenegro has provided the period of validity fo r each type of licence, but has not responded 
whether the validity of the licence can be extend ed.  Please provide this information for each 
type of licence.   
Answer:  
The validity of the licence can be extended, except for licenses issued by the Ministry of Health, 
Labour and Social Welfare.  
Question 33 
The Decision on Control List for Export, Impo rt and Transit includes 7 tariff lines in Chapter 
97 for products that are subject to a licence from the state authority competent for culture.   The Import Licensing Questionnaire, however, ma kes no mention of these products.   Has the 
licensing requirement for these products been revoked ?   If not, please add an explanation of the 
licensing requirements for these products.  
Answer:
 
Products covered by the 7 tariff lines in Chapter 97 are not included in the Import Licensing 
Questionnaire because these products are subject export licenses, not import licenses.  Licenses for these products have not been revoked.  
The Ministry of Culture issues export licenses for:  
- paintings, drawings and pastels; 
- original engravings, prints and lithographs; 
- original sculptures and statuary; 
- postage or revenue stamps, st amp-postmarks, first day covers , postal stationery (stamped 
paper); 
- Collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, 
historical, archaeological, palaentological, ethnographic or  numismatic interest; and 
- Antiques of an age exceed ing one hundred years. 
An exporter must submit to the Ministry of Cultu re following documents in order to get an export 
licence: 
- confirmation from Republic Institution for Protection of Cultural Monument; 
- statement about conformity for export from copyright holder; 
- photography of artwork which is subject of export; and 
- a proof that an administrative fee has been pa id (administrative fee for this licence is €10). WT/ACC/CGR/23 
Page 14  
 
 Question 34 
Regarding licenses from the Ministry for Econom ic Development listed in response to item II.1., 
we do not understand the purpose of requiring licenses for "precious metals and metals clad 
with precious metal" and "TV apparatus a nd sound recorders and re producers".  Please 
explain further Montenegro's rational fo r requiring a licence for these products.  
Answer:
 
The Foreign Trade Law (RM OG, No. 28/04) in Article 20 prescribes that the government may 
required import licence when it is necessary to:  
- protect human, animal or plant life or health; 
- protect national security; 
- protect environment or exhaustible natural resources; 
- protect public morals; 
- protect intellectual property rights; or 
- enforce any special rules related to gold and silver.  
We consider that requiring licenses for "precious meta ls and metals clad with precious metal" is in 
accordance with Article 20 The Foreign Trade La w (RM OG, No. 28/04) and in accordance  with 
Article XX Paragraph 3 of GATT. 
We will abolish with the amended Decision on Co ntrol List the import licence for import of TV 
apparatus and sound recorders and reproducers. 
Question 35 
Regarding licenses from the Ministry of Touris m and Environmental Protection, please explain 
why the different types of licenses have such different fees. 
Answer:  
Montenegro is aware of the problem and it will r esolve it prior the next Working Party meeting.  
Question 36 
Regarding licenses from the Ministry of Agri culture, Forestry and Water Management, we 
understand footnote 1 to mean that after June 2007, a licence will no longer be required for 
imports of fertilizers and pesticides.  However, under the new laws on fertilizers and pesticides, 
an activity licence will be required to import fertilizers and pesticides.    
Is our understanding correct? 
Answer:  
Yes, your understanding is correct.  Question 37 What are the requirements for obtaining an acti vity licence to import fertilizers and pesticides?  WT/ACC/CGR/23 
 Page 15 
 
 
 Answer:  
We are working on drafts of the Law on Pesticid es and the Law on Fertilizers and we will provide a 
detailed answer on activity licence requirement s as soon as the drafts are available.  
Question 38 
Regarding licenses issued by the Veterinary Ad ministration, Montenegro has recognized that 
these licenses are not WTO-compliant a nd has plans to abolish them.   
Will these products not be subject to any licensing regime whatsoever?   
Answer:  
These products will not be subject to import licenses after the abolishment. 
Question 39 
If Montenegro plans to adopt a new licensing re gime for these products, please describe that 
regime. 
Answer:  
Montenegro does not plan to introduce a new licensing regime for these products. 
3. Internal policies affecting foreign trade in goods 
(a)  Industrial policy, including subsidy policies 
Question 40 According to the response to Question 49 of document WT/ACC/CGR/17, assistance under 
these programs "could not have significant influe nce on export improvement."  Please clarify 
further whether assistance is in any way contin gent upon the use of domestic over imported 
goods. 
Answer:
 
No, they did not. That credit assistance was mostly  provided to companies that have not been 
operation for several years, and consisted of support for working capital, solving problems related to 
worker redundancies and for rec onstructing company facilities.   
Question 41 
In response to Question 51 of WT/ACC/CGR/17, Mo ntenegro states that the "duration of loan 
is 3 per cent with grace period of one year."   Please clarify whether you meant to say the 
duration of the loan is three years, or otherwise explain what the 3 per cent means. 
Answer:  
It appears there was a technical error in transla tion. We apologize for the misunderstanding. We 
meant to say that the duration of  the loan was three years.   WT/ACC/CGR/23 
Page 16  
 
 Question 42 
Also in response to Question 51 of WT/ACC/CGR/ 17, Montenegro states that the "interest rate 
is 2 per cent on annual level."  How do the 2 per cent rate and other terms of the loans provided under these programs compare with commercial  rates and terms available on the market 
during the reporting period? 
Answer:
 
That credit program was supplied under subsidized  conditions as obvious.  But that credit program 
has been discontinued for several years, and Monteneg ro no longer provides any sort of subsidies with 
similar conditions.  
Question 43 
In response to Question 53 of document WT/ACC/CGR/17, Montenegro explains that credit 
assistance under these programs was aimed at crea ting "better conditions for restructuring and 
to prepare company for privatization."  Please clarify further whether these programs will be 
terminated when the privatizations are comp leted.  In addition, when does Montenegro 
anticipate these privatizations to be completed? 
Answer:  
Yes. This program will be terminated when the pr ivatizations are completed.  Montenegro expects 
this process to be ended within the next few years.  
(b) Technical regulations and standards 
Question 44 With the abolition of the Law on Quality Contro l for Imported Agriculture and Food Products, 
what quality controls will remain in place and under which law?   
Answer:
 
With the abolition of the Law on Quality Control, Mont enegro applies quality control only at the retail 
level, without any discrimination between domestic and imported goods.  This quality control is based 
on different rule books (around 40 rule books for food  items; quality control for industrial products is 
performed based on different regulations).  The grou nds for enactment of rulebooks are specific laws 
governing trade in specific products, such as Veterina ry Law, Plant Health Protection Law, etc.  
Montenegro submitted the list of all regulations app lied in quality control to the Working Party in 
February 2007. 
Question 45 
Will Montenegro review these contro ls to ensure that they are appropriate and comply with the 
TBT Agreement?  What criteria or guidelines will Montenegro follow to determine the 
appropriateness of its quality controls in this instance?  WT/ACC/CGR/23 
 Page 17 
 
 
 Answer:  
Montenegro will review all regulations governi ng quality control to make sure they are TBT 
compliant.  Furthermore, we will submit the translat ions of required regulations to the Working Party 
and we will gladly accept all possible su ggestions for review of the latter. 
Question 46 
Regarding the response to Question 54 of document WT/ACC/CGR/17, please describe the 
quality controls that will exist after the Law on  Quality Control for Imported Agriculture and 
Food Products is abolished. 
Answer:  
The quality control is applied at retail level as described above.  The market inspector performs 
quality control ex officio. In practice, market insp ector comes to the retail store and takes a look on 
goods displayed on shelves assessing whether they comply with the regulations on quality.  If the market inspector suspects that a particular pr oduct doesn't fulfil conditions prescribed in the 
regulation for that type of a product, he/she take a sample and send it for analysis.  If the analysis 
shows that product doesn't fulfil conditions prescribed in the regulation for that product, he/she would 
orders that any non-conforming produc t be removed from circulation.   
Question 47 
In response to Question 56 of document WT/ACC /CGR/17, Montenegro explains that quality 
controls will no longer be applied at the border.   Will the fees for qualit y control, described in 
response to Question 117 of document WT/ACC/CGR/7, likewise be abolished?    
Answer:
 
Yes, with the abolition of the qualit y control at the border, fees for th at control are also abolished. 
There are no fees, for quality control applied at the retail level. 
Question 48 
Thank you for providing a "List of Technical Re gulations on Quality of Food and Industrial 
Products Applied in the Republic of Montenegro" in response to Questions 57-58 of document 
WT/ACC/CGR/17.  
Is this list a complete list of all technical reg ulations currently applied in Montenegro?   
Answer:  
Yes. 
Question 49 
How are these regulations consistent with Arti cle 2 of the TBT Agreement?  For example, on 
what basis does Montenegro assess th e risks that lead it to conclude that a technical regulation 
is required to fulfil a legitimate objective (see TBT Article 2.2)? WT/ACC/CGR/23 
Page 18  
 
 Answer:
 
The Law on Technical Requirements for Products a nd Conformity Assessment of Products with 
Prescribed Requirements governs enactment of technical  regulations in detail. Article 4 of this Law 
prescribes that drafting, enactment and implementati on of technical regulations is done based on the 
following principles:  Technical regulations and conformity assessment procedures shall not be 
prepared, adopted or applied so as to create unnecessar y obstacles to trade, nor may they have such 
effect. 
With respect to preparation, adoption and appli cation of technical regulations and conformity 
assessment procedures, products originating in a country  that is a signatory to a relevant international 
Agreement (including all WTO Agreements once M ontenegro has acceded to WTO) shall not be 
treated less favourably than like products of domestic  origin or like products originating in any other 
country. 
Technical regulations shall cease to apply if th e circumstances or objectives giving rise to their 
adoption no longer exist or have changed, or if the objectives of a technical regulation can be 
addressed in a less trade-restrictive manner. 
Article 5 of the Law prescribes that technical regul ations are enacted with the purpose of protecting 
life, health and safety of human, animals and plan ts; protection of environm ent; consumer and other 
users protection; protection of property and protecti on of other public interests.  These objectives are 
compliant with the TBT Article 2. In another word, each technical regulation, or more precisely, each rulebook containing technical regulations is enacted based on the above principles.  We believe that 
the wording from the Article 4 and Article 5 of the Law on Technical Requirements for Products and 
Conformity Assessment of Products with Prescr ibed Requirements is complaint with the TBT 
Article 2.2. 
However, the Law doesn't prescribe the basis for a ssessing risks that lead to a conclusion that a 
technical regulation is required to fulfil an appr opriate objective, and therefore we will amend the 
Law in order to add missing language from the TB T Article 2.  The draft amendments will be 
provided prior to next Working Party meeting.  
Question 50 
Below we have identified individual regulations that we would like to review.    
List of Technical Regulation on Quality of Food and Industrial Products  
Applied in the Republic of Montenegro 
REGULATIONS ON QUALITY 
1.  Regulation on the quality of agricultural herbs seed (SFRY OG No. 47/87, 60/87, 55/88, 81/89) and 
(FRY OG, No. 16/92, 8/93, 21/93, 30/94, 43/96, 10/98, 15/01, 58/02) 
4.  Regulation on the quality of slaughter livestock meat, poultry and game meat (SFRY OG No. 13/78, 
1/81) 
5.  Regulation on the quality of fruit, vegetable and edible mushroom products and pectin products 
(SFRY OG No. 1/79, 20/82, 39/89, 74/90, 46/91, and  FRY OG No. 33/95, 58/95; see No. 267 Art.41, 
the S&M OG No.  56/03,05/04; see No. 29 Art.34,S&M OG No.  04/04,12/04,48/04; see No. 43 Art.51, S&M OG No.  12/05) 
7.  Regulation on the quality of fresh fruit, ve getables and edible mushrooms (SFRY OG No. 29/79, 
53/87; see No. 267 Art. 41,  S&M OG No. 56/03,05/04; see No. 29 Art.34, S&M OG, No. 04/04, 
12/04, 48/04; see No. 129 Art.75, S&M OG, No. 31/03) 
10. Regulation on the qu ality of slaughtered porci ne and the categorization of porcine meat (SFRY OG 
No. 2/85, 12/85, 24/86)  WT/ACC/CGR/23 
 Page 19 
 
 
 List of Technical Regulation on Quality of Food and Industrial Products  
Applied in the Republic of Montenegro 
15. Regulation on the methods of sampling and physical, chemical and microbiological analyses of 
animal feeding stuff (SFRY OG No. 15/87) 
18. Regulation on the testing methods of eggs and egg products (SFRY OG No. 72/87) 
23. Regulation on the quality of soups, sauces, se asonings and related products ( FRY OG No. 41/93; 
see No.267 Art.41, S&M OG No. 56/03,05/04; see No.29 Art.34, S&M OG No. 04/04,12/04,48/04) 
25. Regulation on the quality of starch and related products for food purposes (FRY OG No. 33/95; see 
No. 267 Art.41, S&M OG No. 56/03,05/04; see No.29 Art.34, S&M OG No. 04/04, 12/04, 48/04) 
26. Regulation on the quality of  cereals, baking and milling products , pasta and frozen paste (FRY OG 
No. 52/95; see No.267 Art.41,of S&M OG No. 56/03,05/04; see No.29 Art.34,of  S&M OG No. 04/04, 
12/04, 48/04) 
30. Regulations on the quality and other re quirements of animal f eeding stuff (FRY OG 
No. 20/00,38/01) 
39. Regulation on the qua lity and other requirements for milk, milk  products, composite milk products 
and starter culture (FRY OG No. 26/02 , S&M OG No. 05/04, see No.267 Art.41, S&M OG 
No. 56/03, 05/04; see No.29 Art.34, S&M OG No. 04/04,12/04,48/04) 
46. Regulation on the quality and other requirements for meat products (S&M OG No. 33/04) 
50. Regulation on the quality an d other requirements for fine baki ng products, breakfast cereals and 
sneck products (S&M OG No. 12/05) 
55. Regulation on the quality for beef and sheep slaughter and fatten (SFRY OG No. 21/69, 55/69) 
58. Regulation on the quality of poultry meat (SFRY OG No. 01/81, 51/88) 
REGULATIONS ON THE DECLARING, DESIGNING,  
MARKING AND PACKAGING OF PRODUCTS  
1. Order on the designation of certified transporting means for the international transport of 
perishable food products (SFRY OG No.24/78) 
8. Regulation on the marking of agricultural and food products from genetically modified organisms 
(S&M OG No. 06/03) 
9. Regulation on the labelling and markin g of pre-packaging foodstuffs (S&M OG 
No.04/04,12/04,48/04) 
10. Regulation on the marking of pre-packaged food stuffs intended for nutrition of infants and young 
children (S&M OG No.04/05) 
11. Regulation of denoting goods and services which are placed in market (S&M OG No.13/05,16/05) 
 
Answer:  
We will provide translations of the requested ru lebooks prior to the next Working Party meeting. 
Question 51 
Regarding Montenegro's List of Technical Regu lations, the section on regulations for motor 
vehicles makes reference to UNECE standards, but none of the other sections for quality (food), 
technical norms, and design, marking and packag ing of products appear to make reference to 
international standards.  
Does Montenegro reference Codex standards in its food quality standards?  If not, why not? 
Answer:  
No, because Montenegro is not yet a member of C odex Alimentarius.  However, the specific laws 
governing trade in particular food products (Veterinar y law, Plant Health Protection Law, draft Food 
Safety Law) refer to international standards and to particular intern ational organizations such as OIE, 
IPPC, and the Codex Alimentarius.  Since all food quality regulations are enacted in accordance with 
the Law on Technical Requirements for Products and Conformity Assessment of Products with 
Prescribed Requirements (procedure for enactment of  technical regulation) and in accordance with WT/ACC/CGR/23 
Page 20  
 
 specific laws governing trade in particular produc t and specific laws do refer to international 
standards, all food quality regulations are b ased on international standards indirectly.   
The Revised Strategy of Quality Infrastructure Deve lopment in Montenegro, which is expected to be 
adopted in April 2007, will include the obligation of harmonization of food and environment safety 
standards, as well as standards of safety at work. 
Question 52 Does Montenegro reference the Code x General Standard for Labelling of Pre-Packaged Foods?   
Answer:
 
It appears there is a translation error in the List  of Technical Regulations. We listed the Regulation on 
the labeling and marking of pre-packaging foods tuffs (S&M OG Nos. 04/04,12/04,48/04), while it 
should have been translated as Regulation on the labelling and marking of packed foodstuffs. We 
apologize for the error.  There is no specific  rulebook on labelling of pre-packaged foods.  
Question 53 
If not, why not?  
Answer:  
See the answer above. 
Question 54 
Are any of the regulations on technical no rms based on international standards?  
Answer:  
The listed regulations incorporate Yugoslav rather  than international standards, although most 
Yugoslav standards were harmonize d with international standards.   The former Institute for 
Standardization of Serbia and Montenegro, wh ich was a joint institution until Montenegro's 
independence in May 2006, held  13,746 serbian-montenegrin standards in it's data base, 323 
(2.4 per cent) of which were translated CEN st andards, and nine (0.07 per cent) were CENELEC 
standards.  
The Revised Strategy of Quality Infrastructure Deve lopment in Montenegro, which is expected to be 
adopted by May 2007, will include the obligation of harmonization of food and environment safety 
standards, as well as standards of safety at work with international standards.  The Strategy also 
includes the obligation of withdrawing all standard s which are not harmonized with the international 
ones.  
The Montenegrin Institute for Standardization, wh ich was formally established by the Decision of 
Government adopted on 29 March 2007, will in th e first phase of harmonization adopt as national 
standards around 8,000 European standards related to new EU directives and 4,000 EU standards 
related to foodstuff, transport and medical devices.   The Institute intends to adopt the remainder of 
some 21,000 EU standards by the end of the harmonization process.  WT/ACC/CGR/23 
 Page 21 
 
 
 Question 55 
How do Montenegro's quality regulations comply with TBT Article 2.4?  Are all of them based 
on relevant international standards?  
Answer:  
Please see the answer above.  Question 56 What portion of Montenegro's regulations are based on international standards?  
Answer:
 
Please see the answer above.  
Question 57 
Upon accession, what is Montenegro's plan for adopting and using international standards?  
Answer:  
Please see the answer above.  
Question 58 
Is Montenegro intending to use European  standards in technical regulations? 
Answer:  
Generally, yes.  In accordance with Article 7, pa ragraph 1 of the Law on Technical Requirements for 
Products and Conformity Assessm ent of Products with Prescrib ed Requirements, ("LTRCA"): 
"Technical regulations are adopted in accordance with the principles specified in Article 4 of the Law, 
commitments undertaken in bilateral and multilate ral Agreements on preventing and eliminating 
obstacles to international trade and, when it is ne cessary, to harmonize technical regulations of the 
European Union and international Agreements bi nding on Montenegro."  For details, please see the 
answer above.  
- Check-list of Illustrative Technical Barriers to Trade (TBT) Issues (WT/ACC/CGR/20) 
Question 59 We congratulate Montenegro for its easy-to-follow, clear TBT Check-list.  We appreciate 
Montenegro's efforts in presenting this information.   
In both the check-list and the Action Plan, Mo ntenegro notes that the "Union TBT Laws and 
relevant regulations remain in effect and w ill be enforced as Montenegrin laws and 
regulations."  Does Montenegro intend to amend th e laws cited in these documents to reflect the 
current independent status of Montenegro?  Fo r the sake of transparency, we need to 
understand clearly who/which institution is resp onsible for administering these laws, whether 
and how stakeholders can contribute to the pr ocess, how information will be notified and 
publicly disseminated, etc.  Please explain Montenegro's intentions in this regard.   WT/ACC/CGR/23 
Page 22  
 
 Answer:
 
Although the existing regulations, taken over from the former State Union level, provide an adequate 
foundation for proper functioning of the system, they will be reviewed based on Working Party 
comments, to ensure that they are fully compla int with all WTO requirements. The Montenegrin 
Ministry of Economic Development is in charge  of administration of these laws and an inter-
ministerial working group has already begun to draft amendments, which will be provided prior to the 
next Working Party meeting.  
In order to provide transparency, Montenegro h as adopted the Decree on the Manner of Preparing and 
Adopting Technical Regulations and Register of such Regulations. In Article 8 it is said that the 
working group, established by the Minister of Ec onomic Development, prepares the draft technical 
regulation, which the Ministry submits to all inter ested authorities, organizations and other legal and 
natural persons for comments. According to the sa me article, the title and summary of a particular 
draft technical regulation, as well as the data on how the draft can be obtained, is also available at the Ministry's website, as well as the website of the Chamber of Commerce.  
The Ministry has also prepared a draft Decree on Notification of Technical Regulations, Standards 
and Conformity Assessment Procedures prescribing that Enquiry Point for technical regulations, 
which will be in the Department for Quality Infrast ructure, while Enquiry Point for standards will be 
in the Institute for Standardization. The draft Decr ee will be available prior to next Working Party 
meeting.  
Question 60 
One of our most pressing concerns is what pr iority Montenegro assigns to the WTO TBT 
Agreement.  Throughout the TBT Check-list, Monten egro refers to efforts to bring its laws into 
conformity with European Union standards.   
What are Montenegro's intentions with regar d to regional versus in ternational Agreements, 
especially the WTO TBT Agreement?   
Answer:
 
Montenegro will give priority to the TBT Agre ement, although regional Agreements like CEFTA and 
SAA (both of which refer to the TBT Agreement in their preambles and provisions) are also carefully applied.  SAA Preamble says: "…Considering the commitment of the parties to free trade, in compliance with the right and obligations arisi ng out of the WTO", which is applied on all area 
covered in SAA, including the TBT matter. CEFTA Prea mble says:  "resolved to this end to eliminate 
the obstacles to their mutual tr ade, in accordance with the provis ions of the Marrakech Agreement 
establishing the World Trade Organization, and to establish progressively closer trade relations."   
Question 61 
Does Montenegro intend to give priority  to the WTO TBT Agreement upon accession? 
Answer:
 
Yes.  WT/ACC/CGR/23 
 Page 23 
 
 
 Question 62 
In Commitment 1 of the TBT Check-list (doc ument WT/ACC/CGR/20 of 16 February 2007), 
Montenegro states: 
"In accordance with Article 7, paragraph 1 of the Law on Technical Requirements for 
Products and Conformity Assessment of Products with Prescribed Requirements, 
("LTRCA") technical regulations are adop ted in accordance with the principles 
specified in Article 4 of the Law, commitme nts undertaken in bilateral and multilateral 
Agreements on preventing and eliminating obst acles to international trade and, when it 
is necessary, to harmonize technical reg ulations of the European Union and 
international Agreements binding on Montenegro. 
When/under what circumstances, in Montenegro 's view, will it be "necessary, to harmonize 
technical regulations of the European Unio n and international Agreements binding on 
Montenegro"? 
Answer:  
This was a translation error. The sentence was supposed to be as follows:  "…and, when it is 
necessary, to harmonize it's technical regulations w ith technical regulations of the European Union 
and international Agreements binding on Montenegro." 
Question 63 
How would such harmonization be undertaken?  
Answer:  
The details of harmonization would have to depend on the specific technical regulation at issue. 
Question 64 In Commitment 1, Montenegro also states that:  
"Article 3, item 6 of the Law on Standardization prescribes that one of the principles of 
standardization is taking into account rules of international and European organizations 
for standardization and relevant international Agreements." 
How does Montenegro define "internationa l organizations for standardization"? 
Answer:
 
According to Article 2, item 12 of the Law on St andardization, "International organizations for 
standardization are organizations for standardizat ion the members of which can become relevant 
national standardization bodies of any country, like: 
- International Organization for Standardization (ISO); 
- International Electro Technical Commission – IEC; and 
- International Telecommunication Union – ITU. WT/ACC/CGR/23 
Page 24  
 
 Question 65 
How does Montenegro define "European organizations for standardization? 
Answer:
 
According to Article 2, item 11 of the Law on Standardization, "European organizations for 
standardization are organizations for standardizat ion the members of which can become relevant 
national standardization bodies of the European Union, like: 
- European Committee for Standardization (CEN); 
- European Committee for Electro technical Standardization (CENELEC); and 
- European Telecommunication Standards Institute (ETSI). 
Question 66 
How does Montenegro define "rel evant international Agreements"? 
Answer:  
In this context, relevant inte rnational Agreements are multilate ral Agreements on prevention and 
elimination of barriers to international trade wh ich are binding on Montenegro.  Chief among these, 
upon accession, will be the WTO Agreements, including TBT. 
Question 67 In light of the above, how do Montenegro's st atements/legal provisions fulfil the "Standstill" 
principle that: "the introduction of new stan dards, technical regulations and conformity 
assessment procedures should be fully comp atible with the TBT Agreement"?  The TBT 
Agreement would appear to be one amongst e quals rather than the priority.  How does 
Montenegro plan to ensure that its TBT Agre ement commitments will override other competing 
interests? 
Answer:
 
Montenegro pays particular attention to TBT Agreement although regiona l Agreements like CEFTA 
and SAA are also carefully applied. TBT Agreement simply because of its international character and 
due to fact that its provisions are basis for regional Agreements like CEFTA and SAA (both 
Agreements refer to TBT Agreement in their provisi ons), TBT is of a partic ular importance and takes 
precedence over the others.  The draft Decree on No tification of Technical Regulations, Standards and 
Conformity Assessment Procedures refers to the TBT Agreement specifically.   
Article 10, paragraph 1 of the Law on Standard ization prescribes that Montenegrin standards and 
related documents shall be adopted and issued in  accordance with that Law and the rules of the 
Institute for Standardization, which shall be in compliance with the rules of European and 
international organizations for sta ndardization, particularly with the Code for Good Practice for the 
Preparation, Adoption and Application of Standard s of the WTO Agreement on Technical Barriers to 
Trade.  
Question 68 
In Commitment 2, "Submission of Statement on Implementation," Montenegro assures that it 
"will ensure compliance with Article 15.2 of the TBT Agreement upon accession to the WTO."  WT/ACC/CGR/23 
 Page 25 
 
 
 Please confirm that "upon accession" means " upon the date of accession to the WTO?" 
Answer:  
We confirm that "upon accession" means "upon the date of accession to the WTO".  
Question 69 
In Commitment 3, "Establishment and Operation of a Single Contact Point for Information 
("inquiry point"), Montenegro states: 
"In accordance with Article 6 LTRCA, the provision of information on technical 
regulations is conducted in accordance with obligations arising from relevant international Agreements." 
What are the "relevant international Agreement s" to which Montenegro refers and how would 
such Agreements differ one from the other in this regard? 
Answer:
 
In this context, relevant international Agreemen ts are the TBT Agreement and any other multilateral 
Agreements on prevention and elimination of barri ers to international trade that are binding on 
Montenegro. 
Question 70 
Also in Commitment 3, Montenegro states: 
"Pursuant to Article 6, item 10 of the La w on Standardization, the Institute for 
Standardization acts as an information centr e for standards and related documents, in 
accordance with requirements defined by relevant international Agreements and 
obligations arising from membership in European and international organizations for standardization." 
What are the "requirements defined by relevant international Agreements"? Answer:
 
In this context those would be all requirement s defined by the TBT Agreement and any other 
multilateral Agreements on prevention and eliminati on of barriers to international trade that are 
binding on Montenegro. 
Question 71 What are the "obligations arising from membership in European organizations for 
standardization"? 
Answer:
 
According to Article 2, item 11 of the Law on Standardization, "European organizations for 
standardization are organizations for standardizat ion the members of which can become relevant 
national standardization bodies of the European Union, like: WT/ACC/CGR/23 
Page 26  
 
 - European Committee for Standardization (CEN); 
- European Committee for Electro technical Standardization (CENELEC); and 
- European Telecommunication Standards Institute (ETSI). 
Therefore, obligations arising from membership in  European organizations for standardization are 
obligations arising from above mentioned organizati ons. However, due to facts that TBT Agreement 
has more international character and that its prov isions are basis for regional Agreements like CEFTA 
and SAA (both Agreements refer to TBT Agreement in their provisions). TBT is of a particular 
importance and its provisions take precedence ove r obligations arising from other Agreements, 
including obligations arising from Agreements with European organizations for standardization.   
Question 72 
What are the "obligations arising from memb ership in international standardization" 
organizations? 
Answer:
 
According to Article 2, item 12 of the Law on St andardization, "International organizations for 
standardization are organizations for standardizat ion the members of which can become relevant 
national standardization bodies of any country, like: 
- International Organization for Standardization (ISO); 
- International Electro Technical Commission – IEC; and 
- International Telecommunication Union – ITU. 
Therefore, obligations arising from membership in international organizations  for standardization are 
obligations arising from abovemen tioned organizations. However, due  to facts that TBT Agreement 
has more international character and that its provisi ons are basis for majority of other international 
Agreements, the TBT Agreement is particularly important, and its provisions take precedence over 
obligations arising from other Agreements, including  obligations arising from Agreements with other 
international organizations for standardization.   
Question 73 
How are they different from the TBT Agreement?  Which of these Agreements and 
organizations takes/will take precedence? 
Answer:  
Montenegro will give precedence to the TBT Agreem ent among all relevant in ternational Agreements 
on prevention and elimination of barri ers to international trade.    
Question 74 
In Commitment 4, concerning identification of authority responsible for notifications, 
publications and other internal procedures to en sure transparency obligations are met on an 
ongoing basis, Montenegro states: 
"Pursuant to Article 6, item 6 of the Law on Standardization, the Institute for 
Standardization performs activities in accordance with obligations related to 
standardization arising from international Agreements that are binding on Montenegro. 
This includes notification obligation in the area of standards."  WT/ACC/CGR/23 
 Page 27 
 
 
 Please identify the "obligations related to standardization arising from international 
Agreements that are binding on Montenegro". 
Answer:  
These are obligations arising from the TBT Agreem ent after Montenegro ratifies the WTO accession 
protocol (please have in mind that Montenegro will integrate TBT provisions in its legislation even 
before its accession to the WTO). Also, under obliga tions related to standardization arising from 
international Agreements that are binding on M ontenegro, we include obligations arising from 
regional Agreements like CEFTA and SAA, but as  said above, obligations arising from the TBT 
Agreement take precedence over other Agreements.  
Question 75 
In Commitment 4(b), referring to the identifi cation of authority responsible for making 
notifications to the WTO, Montenegro states: 
"In accordance with Article 6 LTRCA, notifica tion of technical regulations is conducted 
in accordance with obligations arising from relevant international Agreements." 
What are the "relevant international Ag reements" to which Montenegro refers? 
Answer:  
The relevant international Agreements in this co ntext are the TBT Agreement and other international 
Agreements binding on Montenegro such as CEFT A and SAA. Obligations arising from the TBT 
Agreement take precedence over other Agreements.  
Question 76 
Please confirm that the Ministry for Econom ic Development, Department for Quality 
Infrastructure is the only authority responsi ble for making notifications to the WTO. 
Answer:  
The Ministry for Economic Development, Depart ment for Quality Infrastructure, is the only 
responsible authority for notifications related to technical regulations and conformity assessments. For 
notifications related to standardization, the only responsible authority will be the Institute for 
Standardization.  
Question 77 
In Commitment 4(b), Montenegro further states: 
"Pursuant to Article 6, item 6 of the Law on Standardization, the Institute for 
Standardization performs activities in accordance with obligations related to 
standardization arising from international Agreements that are binding on Montenegro. 
This includes notification obligatio ns in the area of standards." 
What are the "binding" international Ag reements to which Montenegro refers? WT/ACC/CGR/23 
Page 28  
 
 Answer:
 
The binding international Agreements in this cont ext will be the TBT Agreement after Montenegro 
ratifies the WTO accession protocol (please have in mind that Montenegro will integrate TBT 
provisions in its legislation even before its accessi on to the WTO), and other international Agreements 
binding on Montenegro such as CEFTA and SAA. Obligations arising from the TBT Agreement take 
precedence over other Agreements.  
Question 78 
How do the "obligations related to standard ization" arising from such international 
Agreements differences?  Please identify tho se differences as they relate to the WTO TBT 
Agreement. 
Answer:  
These obligations generally do not differ, beca use other international Agreements binding on 
Montenegro refer to the TBT Agreement.  However,  if they do differ, obligations arising from the 
TBT Agreement will take precedence.  
Question 79 
Concerning Commitment 4(c), requiring guidance/la w to ensure regulatory authorities afford 
non-discriminatory consideration of comments in the preparation of a final regulation, 
Montenegro points to Article 8 of the Decree on the Manner of Preparing and Adoption of 
Technical Regulations and Register of Such Regu lations to fulfil this requirement.  However, 
Article 8 makes no mention of non-discriminatory consideration of written comments.  Nor does 
it provide for Montenegro's compliance with TBT Agreement Articles 2.10, in particular, 2.10.3, 
5.6.4, 5.7.3.  Furthermore, Montenegro's Arti cle 8 of the Decree on the Manner of Preparing 
and Adoption of Technical Regulations and Regi ster of Such Regulations appears to have gone 
beyond the emergency exemptions allowed under TBT Article 2.10.   
TBT Article 2.10, however, makes no reference  to "other public interests".  What does 
Montenegro include/mean by "other public interests"? 
Answer:  
"Other public interests" in this context would be national security or environment protection, as 
defined in Article 2 paragraph 10.  We are awar e that our legislation does not contain all exact 
language from the TBT Agreement.  We are review ing our TBT related legislation based on WP 
comments, and expect that draft amendments will  be available prior to the next Working Party 
meeting.  
Question 80 
We hope that Montenegro will seriously consider revising its law/decree to ensure that the TBT 
Agreement articles are faithfully reflected.  If left as currently written, we are concerned that 
Montenegro risks non-complian ce with the WTO TBT Agreement. 
Answer:  
We expect to submit the text of the necessary amendm ents prior to the next Working Party meeting.   WT/ACC/CGR/23 
 Page 29 
 
 
 Question 81 
Commitment 4(d) concerns guidance/law to ensu re regulatory authorities allow a reasonable 
period of time between the final publication of a technical regulation and conformity assessment 
procedure and its entry into force so that suppliers can adapt. 
Please explain how the simple requirement to publish technical regulations and conformity 
assessment procedures in the "Official Gazette of the Republic of Montenegro" fulfils the 
requirements contained in TBT Articles 2.11, 2.12, 3. 1, 5.8, 5.9, 7.1?  Article 10 of the Decree on 
the Manner of Preparing and Adoption of Technical Regulations and Register of Such Regulations does not ensure that the regulations  will be promptly published nor does it require 
the regulator to provide a "reasonable" interval  between final publication and entry into force.  
We call Montenegro's attention to G/TBT/1/Rev.  8 in which the TBT Committee decided that 
"reasonable interval" normally means "not less than six months".  How will Montenegro enact 
such change? 
Answer:
 
We are aware of all inconsistencies and we will pr epare draft amendments of TBT legislation based 
on Working Party comments.  We will submit the text  of amendments prior to the next Working Party 
meeting.  
Question 82 
What are the "relevant" international Agree ments referenced in Article 4 of the LTRCA? 
Answer:  
In this context, relevant inte rnational Agreements are the TB T Agreement and other multilateral 
Agreements on prevention and elimination of barri ers to international trade that are binding on 
Montenegro. 
Question 83 
Montenegro states that: 
"Article 14 of the Decree on Manner and Procedures of Conformity Assessment 
prescribes that fees for conformity assessment of certain product are equal regardless of 
the origin of the product subject to conformity assessment." 
Why fees for "certain products" and not others  are "equal regardless of the origin of the 
product…"?  
Answer:  
We are reviewing our TBT relate d legislation based on Working Party comments, and expect to 
provide a draft of the necessary amendments pr ior to the next Working Party meeting.  
Question 84 
According to Montenegro, "Article 5 LTRCA prescribes that technical regulations may be 
adopted only to protect human, animal and plant life, health and safety, the environment, consumers and other users, property and other public interests."  WT/ACC/CGR/23 
Page 30  
 
 What criteria does Montenegro use to assess risk  as established in Article 2.2 of the TBT 
Agreement? 
Answer:
 
The Law doesn't prescribe the b asis for assessing risks that lead to conclusion that a technical 
regulation is required to fulfil objectives of protect ion of human, animal and plant life, health and 
safety, the environment, consumers and other users,  property and other public interests, therefore we 
will amend the Law in order to a dd missing language from the TBT Ar ticle 2. The draft amendments 
will be provided prior to next Working Party meeting.  
Question 85 
How does Montenegro intend to bring its laws and decrees into compliance with TBT Articles 
2.4, 3.1, 5.4, and 7.1?  TBT Article 2.4, for example, requires WTO Members to use 
international standards, if they exist, as the ba sis for technical regulations.  Unless modified, the 
laws and decrees that Montenegro cites would make  it difficult for your government to comply 
with the obligations contained in the aforementioned TBT Articles. 
Answer:  
We are aware of all inconsistencies and we will pr epare draft amendments of TBT legislation based 
on Working Party comments.  We expect to submit th e text of the necessary amendments prior to the 
next Working Party meeting.  
Question 86 
With regard to the commitment to consider equival ent technical regulations of other Members, 
Montenegro has clouded its intentions.  Monten egro's laws and decrees appear to apply this 
obligation to only countries "that are signatori es to relevant international Agreements".  Does 
Montenegro include the WTO as a "relevant international Agreement"? 
Answer:  
Yes.  
Question 87 
Montenegro's laws and decrees do no t appear to allow it to comply with TBT Articles 6 and 7.1.  
Montenegro seems to accept the results of co nformity assessment procedures conducted by 
bodies in an exporting Member country only if  the conformity assessment certificates and 
marks are issued "in accordance with internat ional Agreements binding on Montenegro" or 
pursuant to "an Agreement on mutual recognition" .  Does Montenegro include the WTO as an 
international Agreement "binding on Monten egro"?  Are government-to-government MRAs 
the only valid mutual recognition Agreement? 
Answer:  
Yes, the WTO Agreements will be "binding on Montenegro as of the date of accession.  No, 
government-to-government MRAs, would not be th e only valid mutual recognition Agreements; 
conformity assessment certificates and marks that are "in accordance with (i.e., consistent with) WTO 
Agreements would suffice.   WT/ACC/CGR/23 
 Page 31 
 
 
 Question 88 
How does Montenegro plan to modify its laws and decrees to ensure that it will be able to fulfil 
the WTO TBT obligation that fee structures shall be non-discriminatory and cost-based? 
Answer:  
We are aware of all inconsistencies and we will pr epare draft amendments of TBT legislation based 
on Working Party comments.  We expect to submit th e text of the necessary amendments prior to the 
next Working Party meeting.  
Question 89 
Our concerns with Montenegro's  system for Development and Application of Standards and 
Conformity Assessment Procedures (Commitment 6 on the TBT Check-list) are equivalent to 
those identified in the previous questions.  These include: 
- The lack of priority given to intern ational standards which thereby creates an 
inconsistency with Montenegrin assurances of "preventing or eliminating unnecessary" 
obstacles or technical barriers to trade. 
- The lack of a cost-based fee structure in accordance with the WTO TBT Agreement. 
- How will Montenegro change its laws and/or administrative underpinnings to allow it to 
accede to the obligations contai ned in the WTO TBT Agreement? 
Answer:  
We are aware of all inconsistencies and we will pr epare draft amendments of TBT legislation based 
on Working Party comments.  We expect to submit th e text of the necessary amendments prior to the 
next Working Party meeting.  
(c) Sanitary and phytosanitary measures Question 90 We thank Montenegro for submitting its SPS check-list (WT/ACC/CGR/19).  We are still 
reviewing this document and will provide wri tten questions and comments at a later date. 
Please provide the following legislatio n for the Working Party's review:   
- Draft Food Safety Law (expected to be appr oved by the Government by the end of 2006 
or early 2007); 
- Amended Law on Genetically Modified Organisms 
Answer:
 
We will submit the requested legislation pr ior to next Working Party meeting.  WT/ACC/CGR/23 
Page 32  
 
 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(c) Geographical indications, including appellations of origin Question 91 
According to Montenegro's response to Questio n 78 of document WT/ACC/CGR/17, Article 44 
of Montenegro's GI law does not allow the own er of trademark rights established prior to a 
later-applied-for GI to assert the exclusive rights of the prior trademark against a later in time 
and confusingly similar geographical indication or appellation of origin, as required by Article 16.1 of the TRIPS Agreement.  As such, cont rary to Article 16.1, a GI (or an appellation 
of origin) would able to be registered even if  it conflicts with a prior trademark and would 
result in a likelihood of confusion.   
Please indicate how Montenegro, through its La w on Indications of Geographical Origin or 
some other form, will preserve the rights of trad emark owners by protecting trademarks from 
confusingly similar and later in time GIs (or a ppellations of origin) as required by the TRIPS 
Agreement Articles 16.1 and 24.5. 
Answer:
 
Montenegro will amend the Law on Indications of Ge ographical Origin to meet the requirements of 
TRIPS Agreement Articles 16.1 and 24.5.  The amendments will be made not later than 1 January 2008. 
(e) Patents 
Question 92 
In response to Question 79 of document WT/ACC/CGR/17, Montenegro discusses the 
implementation of TRIPS Article 31 in its domestic law.   With respect to TRIPS Article 31(c), Article 63 of the patent law cited by Monten egro does not ensure that in the case of 
semiconductor technology, the scope and duration shall only be for public non-commercial use 
or to remedy a practice determined after judicia l/administrative process to be anti-competitive.  
Please explain how the patent law complies with this requirement. 
Answer:
 
Montenegro will amend the Patent Law to make it  fully compliant with TRIPS Article 31(c).  The 
amendments will be made not later than  1 January 2008. 
Question 93 
Also in the response to Question 79 of docume nt WT/ACC/CGR/17, and in reference to TRIPS 
Article 31(j), which provides that decisions made relating to remuneration must be subject to 
judicial or other independent review, Montenegro notes that Article 70 of its Patent Law (OG SM No. 35/04) refers to Articles 63, 66 and 68 of the Patent Law.  In a previous answer, 
Montenegro cited Article 64 as the Article relat ing to remuneration matters in situation of 
compulsory licence.  Article 64 is not referred to  in Article 70.  Does the Patent Law provide  WT/ACC/CGR/23 
 Page 33 
 
 
 that the remuneration decision mentioned in Arti cle 64 is subject to judicial review or other 
independent review?  
Answer:  
Yes. 
Question 94 
Articles 63, 66 and 68 of the Patent Law regul ate powers of the competent authority (the IP 
Office) to grant a compulsory licence under di fferent circumstances.  A compulsory licence is 
always granted by an administrative decision.  Article 70 provides for the right to request review of any such administrative decision by the Administrative Court of Montenegro. 
Article 64 of the Patent Law, on the other hand, regulates the right of the patent holder to 
collect remuneration from the holder of a com pulsory licence.  Under this provision, in the 
absence of an Agreement between the parties, th e court decides the amount of remuneration 
and the method of payment, taking into acco unt the merits of each individual case and the 
economic value of the compulsory licence.  Th e competent court is the Basic Court or the 
Commercial Court, as the case may be.  Therefor e, Article 64 should not have been referred to 
in Article 70.  
In response to Question 82 of document WT/ACC/CGR/17, Montenegro indicates that it is 
aware that its legislation falls short of meetin g TRIPS requirements relating to undisclosed 
information but that new legislation concern ing undisclosed information will address these 
issues, including protection of undisclosed test or other data against reliance by unauthorized 
third parties and providing for a period of excl usivity for the data.  Please inform the Working 
Party as to when Montenegro expects to have a draft law that can be shared.  Will this law 
provide for a period of exclusivity that will protec t the undisclosed test or other data relating to 
pharmaceutical and agricultural chemicals from  reliance by unauthorized third parties? 
The Legislative Action Plan (WT/ACC/CGR/12/Rev. 1) indicates that a Law on Protection of 
Plant Varieties (UPOV Law) and legislation on protection of undisclosed information (trade 
secrets) are in development.  We appreciate that Montenegro has provided a draft of the Law on Protection of Plant Varieties for the Working Party's review.   
Would Montenegro consider providing the dra ft law on undisclosed information with the 
Working Party for its review?     
Will this law provide for a period of exclusivit y that will protect the undisclosed test or other 
data relating to pharmaceutical and agricultural  chemicals from reliance by unauthorized third 
parties? 
Answer:
 
The draft Law on Protection of Plant Varieties has been prepared and reviewed by UPOV.  
Subsequent to UPOV review and the necessary am endments, the draft has been placed in the 
appropriate procedure for the Government approval .  The draft is expected to be approved by 
30 June 2007 and provided to the Working Party for its review. 
Montenegro will make the draft Law on Protection of  Undisclosed Information available for review 
by 30 June 2007.  The draft Law will address all the relevant issues, including the period of WT/ACC/CGR/23 
Page 34  
 
 exclusivity that will protect the undisclosed test  or other data relating to pharmaceutical and 
agricultural chemicals from relian ce by unauthorized third parties 
4. Enforcement 
(a) Civil judicial procedures and remedies Question 95 
With regard to the responses to Question 223 of document WT/ACC/CGR/7 and Question 104 
of document WT/ACC/CGR/10, please explain wh ether the compensatory  damages may include 
attorney's fees. 
Answer:
 
Under the legal system of Montenegro, notably th e Law on Civil Procures, any party to a litigation 
that wins a case has a right to be  compensated by the losing part y for any expenses incurred in the 
litigation, including attorney's fees.  When deciding  a case, the court always decides the expenses that 
must be paid by the losing party.  This rule is applicable to all litigation, including that related to 
infringement of intellectual property rights.    
Question 96 
Please explain whether the laws of Monteneg ro provide for the indemnification of the 
wrongfully enjoined or restrained defendant  in accordance with Article 48 of TRIPS. 
Answer:  
Under Article 154 (1) of the Law on Contracts and Torts (SFRY OG No. 29/78, 39/85, 45/89, 57/89, 
FRY OG No: 31/93, 22/99, 23/99, 35/99, 44/99) any person that causes an injury must pay compensation for the injury, unless such person proves th at he/she is not culpable.  This is a general 
rule, applicable to any situation, including  those referred to in TRIPS Article 48.   
Question 97 
Please provide information regarding the establishm ent of institutions within the Republic of 
Montenegro to enforce the provisions under Arti cles 41-61 of the TRIPS Agreement relating to 
civil and administrative procedures and remed ies, special requirements related to border 
measures and criminal procedures. 
Answer:
 
Since the independence of Montenegro was declared, the IP Office of the former State Union is no 
longer responsible for registration of IP rights in  Montenegro. Montenegro is in the process of 
establishing its own IP Office, which will be responsib le for registration and depositing of IP rights.  
The process is well under way, and the Working Party w ill be informed of all the developments in due 
course.  
Civil courts administer civil procedures and decide on remedies provided by relevant IP Laws.  If both 
parties to the proceedings are legal persons or entrepreneurs, or where the dispute arises from 
commercial activity, the case would be decided by th e Commercial Court.  If one of the parties is a 
natural person, or where the dispute does not ar ise from commercial activity, the case would be 
decided by the Basic Court.   WT/ACC/CGR/23 
 Page 35 
 
 
 For more detailed information related to civil and administrative procedures and remedies please see 
answers to Questions 202-220 in document WT /ACC/CGR/7 and Questions 73-83 of document 
WT/ACC/CGR/17. 
Customs authorities are responsible for the administ ration of border measures.  For details please see 
the Regulation on Actions of the Customs Authority Applicable to Goods Suspected of Infringement 
of Intellectual Property Rights (RM OG No. 25/05), submitted earlier, and answers to Questions 229-
234 in document WT/ACC/CGR/7. 
Criminal procedures are administered by courts that  enforce relevant provisions of the Penal Code. 
The Penal Code provides penal protection of all inte llectual property rights.  The state prosecutor has 
the power to prosecute all IPR related offences ex officio .  The penalties include fines and 
imprisonment of up to eight years. Under the Pe nal Code, any infringing goods or materials and 
implements, the predominant use of which has been  in the commission of the offence, must be 
confiscated or confiscated and destroyed, as the case may be. 
(b) Provisional measures 
Question 98 
With respect to the provisional measures discussed in questions 225-227 of WT/ACC/CGR/7, we 
understand that provisional measures may be ordered inaudita altera parte .  Do the relevant 
statutes contain a notice requirement in accordance with Art. 50(4) of TRIPS? 
Answer:  
Yes, they do. 
(d) Any special border measures 
Question 99 
Regarding the response to Question 229 of do cument WT/ACC/CGR/7, please explain whether 
the relevant laws provide for a notice of suspensi on of the release of goods to the importer and 
the applicant.  In addition, please explain whet her Montenegro's laws are in line with TRIPS 
Article 55, which limits the suspension time peri od to ten working days with possible extension 
by another 10 working days. 
With regard to the response to Question 231 of document WT/ACC/CGR/7, please explain 
whether Montenegro's laws provide for the destruction or disposal of the goods seized by Customs and determined to be infringing.  Can Customs authorities order the destruction or disposal of the infringing goods? 
Are there any provisions in Montenegro's laws  prohibiting re-exportation of the counterfeit 
trademark goods in an unaltered state? 
Answer:
 
The Regulation On Actions Of The Customs Au thority Applicable To Goods Suspected Of 
Infringement Of Intellectual Property Rights (RM OG No. 25/05) regulates proceedings and powers 
of the customs authorities with respect to goods  found to infringe intellectual property rights. WT/ACC/CGR/23 
Page 36  
 
 Article 9 of the Regulation provides for a period of suspension of 15 calendar days with a possible 
extension for another 15 calendar days.  Monten egro will amend the Regulation to meet the 
requirement of TRIPS Article 55 and limit suspension  to ten working days with possible extension for 
another ten working days.  The amendments w ill be made not later than 30 September 2007. 
All infringing goods must be destroyed or disposed  of outside normal channels of commerce by any 
other manner. The customs authority has the power to destroy infringing goods, either upon court 
order or  ex officio .  
Article 14(2) of the Regulation explicitly states th at re-exporting of infringing goods in an unaltered 
state is not regarded as disposal outside normal channels of commerce. 
(e) Criminal procedures 
Question 100 
We look forward to the response to Question 235 of document WT/ACC/CGR/7 concerning 
criminal procedures.  Please give the Working Party an update as to the status of the 
amendments to the Penal Code.  
Answer:
 
The amendments to the Penal Code were passed by the Parliament in July 2006 and became effective 
as of 3 August 2006.  The translations of the relevant  provisions were submitted to the Secretariat in 
February 2007.   
- Regulation on Actions of the Customs Aut hority Applicable to Goods Suspected of 
Infringement of Intellectual Property Rights (RM OG No. 25/05) 
Question 101 
Article 1(2)(2):  Please describe the types of goods that this provision would be applicable to. Answer:
 
This provision would be applicable to goods that ha ve been manufactured or that bear a trade mark 
under an Agreement with the right holder, where there is some kind of a dispute between the 
manufacturer or holder of goods and the right hold er, as to whether contractual obligations of the 
parties have been fulfilled.  In  such cases the customs authority has no power to interfere and act 
either ex officio or upon the request of either party.  However, if there is a court order or a temporary 
injunction issued by a competent court in such  a dispute, the customs authorities will act in 
accordance with the court order or temporary injunction. 
Question 102 
Article 1(2)(3):  Are guidelines or regulations co ntemplated that would set forth use/quantities 
of goods that would qualify fo r the personal use exemption? 
Answer:  
The provision itself is actually a guideline. The pers onal use exemption is limited to one copy of a 
product.  The Regulation will be a pplicable in all cases where more th an one identical copy of the 
product is being imported or exported.   WT/ACC/CGR/23 
 Page 37 
 
 
 Question 103 
Article 6:  Has the amount of the admini strative application fee been determined? 
Answer:  
Yes.  Customs fee for processing expenses in c onnection with requests for the protection of 
intellectual property rights at the border shall be  €100 (Decree on the types, amounts and manner of 
payment of fee for services rendered by customs au thorities, "Official Gazette of the Republic of 
Montenegro", No. 66/06). 
- The Penal Code of the Republic of Monten egro, Criminal Offences Against Intellectual 
Property Rights  (Amendments Published in RM OG No. 47/06, on 25 July 2006). 
Question 104 
Article 234:  This provision provides for imprisonment.  May criminal fines also be assessed for 
violation of this article? 
Answer:  
The principles of criminal justice system in Monten egro allow for lenient sentencing  in case of first 
time offenders and/or exceptionally m itigating circumstances, if the court so finds.  In such a case fine 
or a suspended sentence may be assessed.   
- The Law on Optical Discs 
Question 105 Article 22 (10) provides for temporarily banni ng the manufacturing of optical discs, or 
duplication of optical discs and sealing the licensed premises for offences of this law.  Does a 
provision exist for permanently closing offending plants for serious violations? 
Answer:
 
Yes.  Under Article 27 of the Law the permanent prohibition of manufacturing of optical discs and/or 
production parts and commercial duplication of optical discs, must be ordered in addition to the fine 
for the offences referred to in Article 24, paragr aph 1 and Article 25, para graph 1, sub-paragraphs 
1 and 3.  A conviction for a serious offence alwa ys requires offending plants to be permanently 
closed. 
- Law on Indications of Geographical Origin (OG of Serbia and Montenegro No. 20/06)  
Question 106 Article 7:  What is the rationale for not protect ing indications of "geographical origin for the 
vine product that is identical to the name of the variety of grape that existed in the territory of 
Serbia and Montenegro before 1 January 1995"? 
Answer:
 
Article 7 reflects and is consistent with the pr ovision of TRIPS Article 24.6. which states that 
"nothing in this Section shall require a Member to  apply its provisions in respect of a geographical WT/ACC/CGR/23 
Page 38  
 
 indication of any other Member with respect to produ cts of the vine for which the relevant indication 
is identical with the customary name of a grape vari ety existing in the territory of that Member as of 
the date of entry into force of the WTO Agreement". 
Question 107 
Article 14:  Some countries may chose to protect  geographical indications at common law, with 
no requirement for official registration.  Does th is article allow applicants from such foreign 
countries to submit an affidavit attesting to the necessary elements of protection, rather than an 
official document from its government? 
Answer:
 
This is probably a linguistic issue.  The meaning of  the provision in the original language of the Law 
is that foreign persons may file an application if  the appellation of origin or geographical indication 
were recognized under any system applicable in th e country of origin.  Therefore, an affidavit 
attesting to the necessary elements of protection would be sufficient. 
Question 108 
Article 16:  It appears that an official docume nt is required from the applicant’s government.  
"Where the applicant is a foreign natural or  legal person or a foreign association, the 
application referred in paragraph 1 of this Ar ticle shall be accompanied by a public document 
issued by a responsible authority in the country of origin verifying that the appellation of origin 
or a geographical indication has been registered in the country of origin."  Please provide clarification. 
Answer:
 
This is an issue similar to the above. Again, the m eaning in the term as used in the original language 
of the Law is "recognition", rather than "registra tion".  Consequently, any public document verifying 
that the appellation of origin or geographical indica tion has been recognized in the country of origin, 
including an affidavit, would meet this requirement. 
Question 109 
Articles 22; 23; 35; 36:  Is there any prejudice  to a foreign applicant whose country does not 
provide information regarding the regis trability of a geographical indication? 
Answer:  
The provisions of Articles 22, 23, 35, and 36 became obsolete with the dissolution of the former State 
Union of Serbia and Montenegro.  These provisions in the former State Union Law on Indications of 
Geographical Origin referred to member states and not to any foreign states. 
Since the independence of Montenegro was declared , both Montenegro and Serb ia have continued to 
use and enforce a number of formerly common laws as their own, including the Law on Indications of 
Geographical Origin.  Of course, under the new ci rcumstances some of provisions are simply not 
applicable any more.  This is the case with Articles 22, 23, 35, and 36.     WT/ACC/CGR/23 
 Page 39 
 
 
 Question 110 
Article 26:  What is the rationale for limited duration of registered geographical indication?  
Does this mean that even if the geographical indi cation loses its significance, it may only cease in 
effect if a petition is filed by a third pa rty or cancellation is effected by the GOM? 
Answer:  
Article 26 reads: "The period of validity of the registered appellation of origin or geographical 
indication shall not be limited." Therefore, the du ration of an appellation of origin or geographical 
indication is unlimited. 
Question 111 
Articles 27; 28 and 42:  Must foreign entities wh o want to use the geographical indication in 
Montenegro apply to do so, even if their country of origin does not have a system for authorized 
users apart from the private obligations required between the authorized user and the owner of 
the geographical indication? 
Answer:  
The provisions of Articles 27, 28 and 42 regulate th e use of Montenegrin geographical indications by 
persons residing or established in Monteneg ro, and do not affect foreign entities. 
Question 112 
Article 44 and 55:  Does this article only allow use of the prior trademark, not registration as 
well?  Are the rights of prior-in-time trademar ks not observed?  Is co-existence allowed?  Does 
the prior-in-time trademark owner have standing  in a claim for infringement?  The reporting 
cable dated 16 March 2007 indicates that "[t]he law for geographic indications will be amended 
to protect prior in time trademarks…."  Wh en will the amendment be available for review? 
Answer:  
Under Article 44, the provisions of the Law on Indi cations of Geographical Origin do not affect the 
conditions for the registration, validity of the registra tion or the right to use a trademark registered or 
acquired in good faith that is identical or similar to a registered geographical indication.  It actually 
protects the right of a prior trademark holder allowi ng the use and co-existence of a prior trademark. 
However, Article 44 does not allow the owner of tr ademark rights established prior to a later-applied-
for GI to assert the exclusive rights of the prior tr ademark against a later in time and confusingly 
similar geographical indication or appellation of origin, which is in consistent with relevant TRIPS 
provisions.  
Montenegro will amend the Law on Indications of Ge ographical Origin to meet the requirements of 
TRIPS Agreement Articles 16.1 and 24.5.  The amendments will be made not later than 
1 January 2008. 
Article 55 does not in any way affect the relations hip between a prior trademark and a later in time 
geographical indication or appellation of origin.  It regulates the ci rcumstances under which a decision 
on the recognition of  status of an authorized user may be revoked.  WT/ACC/CGR/23 
Page 40  
 
 Question 113 
Article 46:  Article 46 prohibits transfer of rights, license Agreement, pledge, franchise or the 
like of geographical indications and relevant trademar k.  What effect does this have on foreign 
geographical indications where such transactions a re not prohibited?  What is the result if such 
a transaction is effected?  Is the geographical indication cancelled ex officio ? 
Answer:
 
The laws of any country are applicable in, and thei r effects are generally limited to the territory of 
such country.  Consequently, Article 46 is appli cable to domestic geographical indications and 
appellations of origin.  If such a transaction is made, the transaction is null and void and it does not 
cause cancellation of a geographical indication  or a ppellation of origin.  Article 46 does not have any 
effect on any foreign geographical indications, including those originating in a country in which such 
transactions are not prohibited. 
Question 114 
Article 55:  Please clarify whether "interested person" includes a prior-in-time trademark 
owner? 
Answer:  
Yes, it does. 
- Law on Patents 
Question 115 Article 43 of the Patent Law states that the competent authority will examine whether the 
subject matter of a patent application "constitutes a technical solution of a specific problem", in 
addition to matters of novelty, inventive step and industrial application.  Please explain whether 
this is an additional requirement of patentab ility that would prevent a patent from being 
granted.  If so, please explain how this is cons istent with TRIPS Article 27.1 that patents be 
available for any inventions "provided that they are new, involve an inventive step and are capable of industrial application." 
Answer:
 
This provision may be interpreted as an additional requirement of patentability, and consequently may 
be inconsistent with TRIPS Article 27.1.  Monten egro will amend Article 43 of the Patent Law to 
make it consistent with TRIPS Article 27.1, not later than 1 January 2008. 
- Montenegro's Planting Materials Law - On Promulgation of the Law on Planting Material 
Question 116 
Article 2 states that genetically modified planting material is not covered by this law.  We are 
eager to review Montenegro's La w on Genetically Modified Organisms.  We note the absence of 
this law in this current submission of legislation for review.   We expect any such legislation to 
conform to principles outlined in the WTO SPS and TBT Agreements, indicating that a 
regulatory system must be transparent, timely, predictable, and science-based.  WT/ACC/CGR/23 
 Page 41 
 
 
 Answer:  
Montenegro provided the Law on Genetically Modifi ed Organisms and its two by-laws to the WTO 
Secretariat in September 2005 (document WT/ACC/CGR/9 refers), and is also enclosing the material 
as Annex I  to these answers.  
Question 117 
Under Article 5, only companies or other legal persons or entrepreneurs entered in the Register 
of Producers may become involved in the produc tion of planting material.  Can you please 
describe the process involved in entering a name in  to the Register and how much time it takes 
to be entered into this register.  Is this the same process for companies or other legal entities 
wishing entry in the Register of Importers per Article 28? 
Answer:  
Article 7 prescribes that entry in the Register of  Producers is possible for producers with land required 
for production of planting material and who empl oy on full-time basis a person responsible for 
production of planting material (hereinafter referr ed to as:  responsible person) with academic 
qualifications  and at least three years of relevant work experience. 
An application for entry in the Register  of Producers must include data about: 
- the producer (name, registered office, address, unique identification number, fiscal 
identification number and code of business activity); 
- responsible person (first and last name, a ddress, unique identification number, and 
educational background); 
- species, variety, and category of planting material; and 
- parent trees. 
The application needs to be accompanied w ith additional documentation as follows:  
- proof of the right of disposal over, or use of, the agricultural land for production of planting 
material (an excerpt from the title deed, or the lease Agreement); 
- employment contract with the responsible person; 
- outline of a production plan (the manner of processing, protecting and preserving the 
biological and chemical characteristics of la nd, cultivation of pare nt trees, and production 
volumes); and 
- proof of registration in Central Register of Commercial Court. 
This Register of Producers is not the same as the Regi ster of Importers defined in Article 28.  In order 
to be inscribed in Register of Importers, a comp any, or other legal person or entrepreneur must 
submits proof of registration in the Central Regist er of Commercial Court a nd proof of ownership or 
contractual right to use a registered customs warehouse.  
The process of registration for both the Register of Producers and the Register of Importers last 
around seven days if the documentation for registrati on is complete; if not, producers and importers 
are informed to complete documents, which take s additional few days, but in any case cannot last 
longer than the 30 day maximum specified in th e Law on General Administrative Procedure.   WT/ACC/CGR/23 
Page 42  
 
 Question 118 
Article 12 states that production of planting material "may be conducted in other county on the 
basis of a contract between such domestic client  and a foreign producer, upon the consent of the 
administrative authority."  Who is the administrative authority and how is consent granted? 
Answer:
 
The administrative authority mentioned in paragra ph 3 of Article 12 and throughout the whole Law is 
the Ministry for Agriculture, Forestry and Water Supply. 
The consent of the Ministry of Agriculture is gr anted, upon application, in the form of written 
decision. 
Question 119 
Who is the administrative authority in Article 28, is this the same administrative authority 
mentioned throughout the law such as in Articl e 8, Article 10, Article 11, etc?  How will the 
Ministry make publicly available to importers the "content, from, and manner of keeping the 
Register of Importers, and the content of the application?" 
Answer:  
Yes, it is the same administrative authority.  
All legal acts enacted by state authorities in the Repu blic of Montenegro are published in the Official 
Gazette of the Republic of Montenegro. All acts (l aws, decrees, regulations, orders, decisions…etc) 
enacted by the Ministry of Agriculture, including "content, from, and manner of keeping the Register 
of Importers, and the content of the application" are so published and therefore available to importers.  
Question 120 
Article 30: Paragraph 1 states that "The imported planting material, along with the bill of 
lading, must be accompanied by ...and the certificat e of quality of planting material (ISTA)."  
There are a number of certification and testing programs recognized by the OECD Seed Schemes (key international seed certifying body),  including ISTA.  We would like to see ISTA 
replaced with ISTA or equivalent internationally recognized methods.  (Per Article 4 of the SPS 
Agreement – Equivalence) 
Answer:
 
We appreciate this comment and we will amend the provision on ISTA certificates in accordance with 
these suggestions. 
Question 121 
Article 31: Paragraph 2 states that "Planting material which is imported shall be subject to 
mandatory control of certification and qualit y...at the border crossing." Imports of plant 
material into Montenegro are subject to requirements contained in Article 11 and Article 13.  Mandatory inspection by a phytosa nitary inspector at the border crossing is burdensome and 
provides no additional level of protection.  We would like to have the aforementioned requirements as contained in Articles 11 a nd 13 fulfil the requirements under Article 31,  WT/ACC/CGR/23 
 Page 43 
 
 
 therefore, no additional mandatory inspection by  a phytosanitary Inspector would be necessary 
at the border crossing.   
Answer:  
It appears there is certain misunderstanding. Articles 11 and 13 prescribe conditions for domestic 
producers, not importers. Article 31 says that plan ting material may be imported only from producers 
which comply with the production requirements, name ly which are registered and under supervision 
of the competent authority of the exporting countr y.  This is related to foreign producers.  
However, since the Law on Plant Health Protection prescribes that all plant shipments are subject to 
phytosanitary inspection, and the planting materi al is considered as a plant according to IPPC 
Convention, we believe that fact that phytosan itary inspector is present at the border is not 
burdensome to trade.  We are trying to harmoni ze our SPS legislation with the SPS Agreement which 
refers to international organi zations, among which is IPPC.   
Question 122 
Are the fees described in Article 54 the same  for domestic and foreign producers?   
Answer:  
Yes, all fees charged based on this Law are equal for foreign and domestic persons. 
- On Promulgation of the Law on Seed Material of Agricultural Plants (RM OG No. 28/2006) 
Question 123 According to paragraph 5 of this article, the Mi nistry shall specify the type of packaging and 
designation of individual categories of seed mate rial.  Please describe how the Ministry shall 
make this information publicly available.  Also please specify who the administrative authority 
is under paragraph 5.  
Answer:
 
The administrative authority mentioned in paragra ph 5 of Article 4 and throughout the whole Law is 
the Ministry for Agriculture, Forestry and Water Supply. 
All legal acts enacted by state authorities in the Repu blic of Montenegro are published in the Official 
Gazette of the Republic of Montenegro.  All acts (l aws, decrees, regulations, orders, decisions…etc) 
enacted by the Ministry of Agriculture, including "type of packaging and designation of individual categories of seed material" are so published.  
Question 124 
Please specify who is the Administrative Author ity referred to in Article 6 and Article 7. 
Answer:
 
See answer above.  WT/ACC/CGR/23 
Page 44  
 
 Question 125 
Article 40: Paragraph 4 states "...shall submit th e declaration, namely varietal certification of 
seed (OECD), certification of seed quality (ISTA) and phytocertificate."  There are a number of certification and testing programs recognized by the OECD Seed Schemes (key international seed certifying body), including ISTA.  We would like to see ISTA replaced with ISTA or 
equivalent internationally recognized method s.  (Per Article 4 of the SPS Agreement – 
Equivalence) 
Answer:
 
We thank you for this comment and we will ame nd the provision on ISTA certificates in accordance 
with your suggestions. 
Question 126 Article 45: Who is the administrative authority referred to in this article?  Please describe the 
application process for importers interested in being entered into the Register of Importers. 
Answer:
 
The administrative authority mentioned in Article 45 and throughout the whole Law is the Ministry 
for Agriculture, Forestry and Water Supply. 
The Law on Seeds prescribes that wholesale trade in  seeds include importation. That means who ever 
is registered in Register of Wholesalers can be re gistered in the Register of Importers of seeds if 
he/she submits few additional information. 
A company, or other legal person or entrepreneur ma y be entered in the Register for Wholesalers of 
Seed Material upon application if it employs, on fu ll time basis, for marketing activities, a person who 
with required academic training and has a facility for warehousing seed materials. 
Registration as an importer requires in addition pr oof on registration in the Central Register of 
Commercial Court and proof of ownership or the contractual right to use a registered customs 
warehouse.  
The process of registration for both the Register of Wholesalers and the Register of Importers of seeds 
takes around 7 days if the documentation for registra tion is completed and is subject to the 30 day 
limit specified in the Law on General Administrative Procedure. 
Question 127 
Article 47:  Paragraph 1 states "...accompanied by  a phytocertificate, varietal certification of 
seed material (OECD), and certificate of seed material quality (ISTA)."  There are a number of certification and testing programs recognized by the OECD Seed Schemes (key international 
seed certifying body), including ISTA.  Conseque ntly, we would like to see ISTA replaced with 
ISTA or equivalent internationally recognized me thods.  (Per Article 4 of the SPS Agreement – 
Equivalence)  WT/ACC/CGR/23 
 Page 45 
 
 
 Answer:  
We appreciate this comment and we will amend the provision on ISTA certificates in accordance with 
these suggestions. 
__________