RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/28 
2 June 2008 
 (08-2556) 
Working Party on the 
Accession of Montenegro Original:   English 
 
 
 
ACCESSION OF MONTENEGRO 
 
Additional Questions and Replies  
 
 
 The following submission, dated 23 May 2008, is  being circulated at the request of the 
Delegation of the Republic of Montenegro.   
_______________   WT/ACC/CGR/28 
 Page i 
 
 
 TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- State Ownership and Privatization .........................................................................................1  
- Pricing Policies ............................................................................................................... ...........3  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ......................................5  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................6  
- Trading Rights ................................................................................................................. .........6  
A. IMPORT REGULATIONS......................................................................................................9  
- Ordinary cust oms duties ........................................................................................................ ..9 
- Tariff rate quotas, tariff exemptions.....................................................................................10  
- Fees and charges for services rendered.................................................................................10  
- Application of internal taxes to imports ...............................................................................11  
- Quantitative import restrictions, includi ng prohibitions, quota and licensing 
systems ........................................................................................................................ .............12  
- Customs valuation.............................................................................................................. .....14  
- Rules of origin ................................................................................................................ .........16  
- Preshipment inspection ......................................................................................................... .17 
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................17  
- Industrial policy, including subsidies....................................................................................17  
- Technical barriers to trade, standards and certification.....................................................17  
- Sanitary and phytosanitary measures...................................................................................20  
- Trade-related investment measures ......................................................................................23  
- State-trading entities......................................................................................................... ......23  
- Free zones, special economic areas........................................................................................24  
- Government procurement......................................................................................................25  
- Transit........................................................................................................................ ..............26  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................26  
- ENFORCEMENT...................................................................................................................2 6 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................28  
  WT/ACC/CGR/28 
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 II. ECONOMIC POLICIES 
- State Ownership and Privatization Question 1 We appreciate the information provided to date by Montenegro for this section.  We have the 
following additional comments. 
Point of clarification:  Please confirm that the discussion in this section refers to both "socially 
owned" and "State-owned" firms, and that the statistics given cover both. 
Answer:
 
"Social companies" do not exist in Montenegro  any more.  In accordance with the Law on 
Transformation of Ownership and Governance (R M Official Gazette Nos. 2/92, 27/94, 30/94 
and 23/96) all enterprises and other entities having soci al capital have been transformed in joint-stock 
companies or limited liability comp anies with known owners of the capital (private, mixed, State or 
cooperative ownership). 
Question 2 
This section needs summary information on the overall status of privatization. 
For example, what is Montenegro’s assessment of  what remains to be done to "complete" the 
process? 
Answer:  
In accordance with the Law on Privatization of Economy (RM Official Gazette Nos. 23/96, 6/99, 
59/00 and 42/04), privatization is conducted pursuant to the Annual Privatization Plans adopted by the 
Government, upon proposal of the Privatization Co uncil (Article 3).  The same Article defines in 
detail the content of the privatization plan.  The Decision on Privatization Plan for 2008 (RM Official 
Gazette No. 17/08) provides for, inter alia , methods and manner of privatization of all companies that 
have State-owned capital in their portfolio and that should be privatized in the following period.  The 
Decision on Privatization Plan for 2008  is provided in WT/ACC/CGR/28/Add.1. 
Question 3 
How many firms remain on Mo ntenegro’s list of enterprises that may be subject to 
privatization? 
Answer:  
The abovementioned privatization plan for 2008 list s all companies that will be privatized in the 
following period (according to methods and manner of privatization:  sale of shares and property on 
public bids (17), sale of shares and property on public auctions and sale of shares on the stock-
exchange (38), privatization of companies in the forestry area (3), sale and valorization of military 
property (35), privatization of companies in recei vership and valorization of tourist sites through 
public and private partnership). WT/ACC/CGR/28 
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 Question 4 
What firms are likely to be reserved for continued State ownership? 
Answer:
 
The Government of Montenegro, upon proposal of the Privatization Council, decides on the 
percentage of State ownership in companies for ev ery year, through the Annual Privatization Plan.  
However, no companies  will be be r eserved for continued State ownership. 
Question 5 
What is Montenegro’s estimate of how long co mpletion of its privatization process this may 
take? 
Answer:  
It is difficult to provide the precise answer.  The majo r part of privatization in Montenegro has already 
been conducted.  For remaining companies it is ne cessary to conduct the privatization procedure and 
methodology (preparation of restructuring strategi es and programmes prior to selecting methods and 
procedures, upon consultations with reputable fore ign advisors), the duration of which cannot be 
assessed in advance.  Montenegro is determined to complete the privatization process as soon as 
possible, depending on the circumstances. 
Question 6 
Tables 1 and 2 are helpful, but do not give full sense of the scope of Montenegro’s efforts on 
privatization to date.  Would it be possible to  provide information in  the following format: 
Status Report on Privatization Progress through 1 January 2008  
Number of Enterprises Number of Employees Value of Equity Sector 
Privatized  In Process Privatized In Process Privatized In Process 
Manufacturing       
Agriculture       
Construction       
C r a f t s        
Distribution        
Transportation       
Finance        
Telecommunications       
C r a f t s        
Catering and Tourism       
O t h e r        
Total       
 
Answer:  
In Montenegro, privatization has been conducted acco rding to privatization plans for each year and 
not according to sectors.  Therefore, we are not in the position to submit the report in the required 
format.  WT/ACC/CGR/28 
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 However, it should be noted that more than 85 pe r cent of the formerly State-owned capital has been 
privatised so far.  The Table lists the larger comp anies with the majority of State-owned capital that 
remain to be privatized. 
Larger Companies with the Majo rity of State-Owned Capital  
Company Sector Nominal Value 
of theCompany 
in Euro State’s 
Share in % Value of the 
State 
Share in Euro 
"Elektroprivreda CG" AD Niksic Energy 907,036,354 67.00 607,714,357 
Zeljeznice Crne Gore Railway 319,533,049 65.00 207,696,482 
"Jadransko brodogradiliste" AD 
Bijela Shipyard 31,612,218 62.00 19,599,575 
AD "Plantaze" Podgorica Wine produc tion 68,704,284 54 .00 37,100,313 
AD Luka Bar Bar Adriatic Port 133,958,143 54.00 72,337,397 
Duvanski kombinat AD Podgorica Tabaco 
production 19,781,558 51.10 10,088,595 
Institut Dr Simo Miloševi ć Health tourism 59,240,278 56.00 33,174,556 
HTP Budvanska rivijera Tourism 69,618,231 58.73 40,886,787 
HTP Ulcinjska rivijera Tourism 81,529,344 60.73 49,512,771 
Total capital  1,691,013,459 63.76 1,078,110,833 
 
- Pricing Policies 
Question 7 Paragraph 32 of the Draft Report:  Are impo rted medicines reimbursable by the National 
Health Plan? 
Answer:
 
Yes, in the health system in Montenegro th e conditions for payment of imported and domestic 
medicines are identical. 
Question 8 
Paragraph 35:  Concerning the price-setting pr ocess established by the Regulation on the 
Criteria for Determining Maximum Prices of Medicines (RM OG No. 50/07), please briefly 
describe the process. 
Answer:  
The Decree on Criteria for Establishing Maximum Prices of Medicines (RM Official Gazette 
No. 50/07) defines the criteria for establishing ma ximum prices of medicines and specifies the 
reference countries, whose wholesale prices are used for comparison with the wholesale prices in 
Montenegro.  
The criteria for establishing maximum prices of medicines are: - Comparative wholesale price of medicines in reference countries; 
- Average comparable wholesale price in reference countries; 
- Ratio of the wholesale price in Montenegro  comparable wholesale price in reference 
countries; 
- Average comparable wholesale price of  medicine in reference countries; WT/ACC/CGR/28 
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 - Current wholesale price; 
- Indicators of farmaco-economic study; and - Wholesale costs. 
Reference countries are the following neighbouring countries or countries in the region: - Republic of Slovenia; 
- Republic of Croatia; and 
- Republic of Serbia. 
The producer of a medicine, or its agent or repr esentative having corporate domicile in Montenegro, 
submits to the Agency for Medicines and Medical Devices of Montenegro the proposed price of the 
medicine when applying for a licence for placing medicine on the market.  
The Agency for Medicines and Medical Devices, wh en processing the application of the producer or 
the agent, determines the maximum price at which the prescription medicine may be sold in Montenegro on the basis of the submitted documentation and the aforementioned prescribed criteria, including comparison of average prices of such medici ne in reference countries (calculated into Euro).  
The determined price of a medicine is published in  the Official Gazette of Montenegro.  Market 
inspectorate controls the application of the determin ed prices of medicines.  Prices of medicines of 
domestic and foreign producers are set in the same  manner.  Over-the-counter medicines are not 
subject to price control.  
Question 9 
At what point of sale prices are set, how the controlled prices are enforced, and any differences 
in the way imported and domestic medi cines are handled under this process. 
Answer:
 
Prices are controlled on the wholesale and retail leve ls, and there is no difference in the manner of 
proceeding with domestic and imported medicines.  
Question 10 
Could Montenegro provide the list of price-co ntrolled medicines adopted in July 2007?  Are 
changes to this list published? 
Answer:  
The process of registration i.e. issuing of licen ses for placing medicines on the market has recently 
begun in Montenegro, and the Decree refers only to su ch medicines.  Up to now, the procurement of 
medicines, which are paid for by the Health Fund, for the needs of public health institutions, has been 
conducted through internati onal bid that ensures the same co nditions for domestic and foreign 
producers, and in such a manner that ensures suffici ent quantities of medicines.  The procurement of 
medicines will be conducted in this manner in th e following two years, in which period the newly 
established Administration for Medicines and Medical Devices will register the sufficient number of medicines and medical devices necessary for the unimp eded and continuous suppl y.  The list of price 
controlled medicines, provided for by the Regulati on on Criteria for Establishing Maximum Prices of 
Medicines adopted in July 2007, is still being comp iled.  Once finalized, it will be published in the 
Official Gazette.  All the subsequent cha nges to the list will  also be published.  WT/ACC/CGR/28 
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 The Law on Medicines (RM Official Gazette No. 18/08) has been amended to provide the same 
treatment to domestic and foreign importers of me dicines and make a distinction between import and 
distribution activities. 
Question 11 
We suggest the following commi tment text for this section: 
35bis.   The representative of Montenegro confirmed that from the date of accession, 
Montenegro would apply price control measures in a WTO-consistent fashion, including by 
taking account of the interests of exporting WT O Members as provided for in Article III:9, of 
the GATT 1994 and with respect to Articles V and VIII of the GATT 1994 and Article VIII of the General Agreement on Trade in Services (GATS).  He also confirmed that following 
accession, Montenegro would regularly publish noti ces of the goods and services subject to State 
price controls.  The Working Party took note of these commitments. 
Answer:
 
Montenegro accepts the commi tment text as suggested.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 12 
We suggest the following commitment on the right of appeal: 46bis.   The representative of Montenegro confirmed that from the date of accession 
Montenegro’s laws would provide for the right to appeal administrative actions on matters 
subject to WTO provisions to an independent tribunal in conformity with WTO obligations including Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment. 
Answer:
 
Montenegro accepts the commi tment text as suggested.  
Question 13 
We suggest the following commitment on unifo rm application of the GATT throughout 
Montenegro’s customs territory: 
48bis.   The representative of Montenegro confirmed that sub-central entities had no 
autonomous authority over issues of subsidies,  taxation, trade policy or any other measures 
covered by WTO provisions.  He confirmed that, from the date of accession, the provisions of 
the WTO Agreement, including Montenegro’s Pr otocol of Accession, would be applied 
uniformly throughout its customs territory and other territories under its control, including in 
regions engaging in border trade or frontier tra ffic, special economic zones, and other areas 
where special regimes for tariffs, taxes and regulatio ns are established.  He also confirmed that 
when apprized of a situation where WTO provisions were not being applied or were applied in a non-uniform manner, central authorities would act to enforce WTO provisions without requiring affected parties to petition through th e courts.  The Working Party took note of these 
commitments WT/ACC/CGR/28 
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 Answer:
 
Montenegro accepts the commi tment text as suggested.  
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 14 
We welcome Montenegro’s responses to our wr itten questions and comments contained in 
WT/ACC/CGR/27 and the incorporation of this material in the Draft Working Party Report.  It confirms that Montenegro is prep ared to expand the right to impo rt and to export in line with 
the requirements of Articles III and XI of the GATT, and that Montenegro recognizes the difference between that and the right to distribut e in the domestic market, which is covered by 
the GATS. 
We look forward to reviewing the legislation that will bring Montenegro’s regime on trading 
rights into line with WTO requirements.  If possib le, we would like to see the legislation prior to 
its adoption.  When does Monteneg ro intend to make these changes? 
Answer:
 
All amendments have already been introduced and submitted to the Secretariat prior to the 
fifth Working Party meeting (24 January and 15 Februa ry 2008).  With regard to the right to import 
and export, the amendments to the following laws have been adopted: 
- The Customs Law (RM Official Gazette Nos. 7/02, 38/02, 72/02, 21/03, 31/03, 29/05, 66/06 
and RM Official Gazette No. 21/08); and 
- The Law on Medicines (Official Gazette of Montenegro Nos. 80/04 and 18/08). 
It is expected that the Law on Amendments to the Law on Medical Devices, which is currently in the 
Parliamentary procedure for adoption, will be adopted  by the end of the second quarter of this year. 
With these amendments the clear distinction between  the import activity, regulated by the provisions 
of Articles III and XI of the GATT, and the distribution activity, regulated by the provisions of GATS, has been made. 
Question 15 Paragraph 49 states that corporate "registratio ns could be made for individual entrepreneurs, 
limited liability partnerships, and joint-stock companies." 
Are these the only forms of business associat ion that can be registered in Montenegro? 
How would a subsidiary or a branch be registered? 
Answer:
 
In accordance with the provisions of the Law on Companies (RM Official Gazette No. 6/02 dated 
8 February 2002, Official Gazette of Monteneg ro No. 17/07), the forms for performing economic 
activity in Montenegro are:  WT/ACC/CGR/28 
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 - Entrepreneurs; 
- Partnerships; - Limited partnership; - Joint-stock companies; - Limited liability companies; and 
- The part of foreign company. 
Every foreign company may register its subsidia ry or branch as a joint-stock company, limited 
liability company or as a part of the foreign company.  
Question 16 
Paragraph 50 states that "The Law on Business Entities prescribed a minimum capital 
requirement of €25,000 for joint-stock companie s, while the minimum capital needed for a 
limited liability company was €1.  No minimu m capital was required for entrepreneurs or 
partnerships." 
How is this minimum capitalization established to satisfy the requirement?   Must this amount be deposited in a local bank or with the Government? 
Answer:
 
In the case of joint-stock companies, the founders, in accordance with the contract on establishing, 
make payments for shares in the appropriate value (on the account of the joint-stock company).  In the 
case of establishing the limited liability company, the founder makes a payment in the amount of 1€ 
on the account of the limited liability company.  The account on which payments of the founding capital are made is the one in the local bank.  The Government has no role whatsoever in establishing 
of companies.  
Question 17 
Paragraphs 54-56:  The description in these par agraphs covers activity licence requirements for 
retail and wholesale trade in and manufactu re of tobacco and tobacco products.   
Please clarify what type of activity licence is ne cessary to import or ex port tobacco and tobacco 
products.   
Answer:
 
A company or an entrepreneur may engage in im portation of tobacco, processed tobacco and tobacco 
products if they have been entered in the Regi ster of Economic Operators for performing wholesale 
activity, and if: 
- They submit the application to the au thority responsible for issuing licenses; 
- They have concluded the contract regardi ng purchase of tobacco, processed tobacco, or 
tobacco products with the foreign producer or authorized distributor of the foreign producer, 
authorized for distribution of its products in the territory of Montenegro; 
- The company, entrepreneur or responsible pers on in the company have not been convicted for 
a criminal offence of illegal trade or illegal production of tobacco, processed tobacco and 
tobacco products in the three years preceding the filing of application for issuing approval; 
and 
- They pay the prescribed fee. WT/ACC/CGR/28 
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 Company or an entrepreneur may engage in expor tation of tobacco, processed tobacco and tobacco 
products if they have been entered in the Regi ster of Economic Operators for performing wholesale 
activity, and if the company, entrepreneur or r esponsible person in the company have not been 
convicted for a criminal offence of illegal trad e or illegal production of tobacco, processed tobacco 
and tobacco products in the three years preceding the filing of application for issuing approval. 
Question 18 Paragraph 60:  We thank Montenegro for its pledge  to amend its laws to bring its regime on the 
right to import and to export into  conformity with WTO rules.   
Please clarify which laws will be amended to do this. Please clarify that importers/exporters only have to  be represented by an agent if they have not 
registered at Customs. 
Answer:
 
All amendments have already been introduced and submitted to the Secretariat prior to the 
fifth Working Party meeting (24 January and 15 Februa ry 2008).  With regard to the right to import 
and export, the amendments of, inter alia , the Customs Law and the Law on Medicines have been 
adopted, and it is expected that the Law on Amen dments to the Law on Medical Devices will be 
adopted by the end of the second quarter of this ye ar.  With these amendments the clear distinction 
between the activity of importation, regulated by the provisions of Articles III and XI of the GATT, and the activity of distribution, regulated by the provisions of GATS, has been made.  Montenegro confirms that importers that do not have cor porate domicile or residence in Montenegro are 
represented by the customs agent in the customs procedure. 
Question 19 We suggest a commitment for this section along the following lines: xx.   The representative of Montenegro confirme d that from the date of accession Montenegro 
would ensure that its laws and regulations relat ing to the right to import and to export goods 
and the implementation of such laws and regul ations would be in full conformity with WTO 
obligations, including Articles VIII:1(a), XI:1, and III:2 and III:4 of the GATT 1994.  He also 
confirmed that, to this end, individuals and firms,  regardless of national or igin, would be able to 
import and export products as importers or  exporters of record, with no requirement of 
physical presence or investment in Montenegro.  Other than with respect to those goods set out 
in Table xx, the sole condition to serving as impo rter or exporter of record would be to register 
with the relevant Montenegro authority as described in paragraph yy.  The Working Party took 
note of these commitments. 
Answer:
 
Montenegro accepts in principle th e commitment text as suggested, however in order to make it more 
precise, Montenegro suggests the following language: 
"The representative of Montenegro confirmed th at from the date of accession Montenegro would 
ensure that its laws and regulations relating to the right to import and to export goods and their 
implementation would be in full conformity with WTO obligations, including Articles VIII:1(a), XI:1, 
and III:2 and III:4 of the GATT 1994.  He also confir med that, to this end, individuals and firms, 
regardless of national origin, woul d be able to import and export produc ts as importers or exporters of  WT/ACC/CGR/28 
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 record, with no requirement of physical presence or i nvestment in Montenegro, if they are represented 
by a customs agent."  
A. IMPORT REGULATIONS 
- Ordinary customs duties Question 20 
Note:  Table 3 has a number of typos, i.e., the da tes for the seasonal duties have been mistaken 
for ex-out notations. 
Answer:
 
Montenegro apologizes for technical errors in Ta ble 3.  Please see the corrected Table bellow: 
Table 3:  Seasonal Duties  
HS 2007 Description 
0701 Potatoes, fresh or chilled: 
0701 90 - Other: 
0701 90 50 00 - - - New, from 1 January to 30 June 
0702 00 00 Tomatoes, fresh or chilled 
0702 00 00 10 - From 1 April to 31 August 
0707 00 Cucumbers and gherkins, fresh or chilled: 
0707 00 05 - Cucumbers: 
0707 00 05 10 - - From 1 April to 30 June 
0707 00 90 - Gherkins: 
0707 00 90 10 - - From 1 September to 31 October  
0805 Citrus fruit, fresh or dried: 
0805 20 -Mandarins (including tangerines and satsumas); clementines, wilkings and similar 
citrus hybrids: 
0805 20 10 - - Clementines: 
0805 20 10 10 - - - From 1 October to 31 December  
0805 20 30 - - Monreales and satsumas: 
0805 20 30 10 - - - From 1 October to 31 December 
0805 20 50 - - Mandarins and wilkings: 
0805 20 50 10 - - - From 1 October to 31 December  
0805 20 70 - - Tangerines: 
0805 20 70 10 - - - From 1 October to 31 December  
0805 20 90 - - Other: 
0805 20 90 10 - - - From 1 October to 31 December  
0806 Grapes, fresh or dried: 
0806 10 - fresh: 
0806 10 10 - - Table grapes: 
0806 10 10 10 - - - From 1 July to 30 September  
0806 10 90 - - Other: 
0806 10 90 10 - - - From 1 July to 30 September  
0807 Melons (including watermelons) and papaws (papayas), fresh:  
0807 11 00 - - Watermelons: 
0807 11 00 10 - - - From 1 July to 31 August  
0808 Apples, pears and quinces, fresh:  
0808 10 - Apples: 
0808 10 10 00 --Cider apples, in bulk,  from 16 September to 15 December  
0808 20 - Pears and quinces: WT/ACC/CGR/28 
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 HS 2007 Description 
  - - Pears: 
0808 20 10 00 - - - Perr y pears, in bulk, from 1 August to 31 December  
0809 Apricots, cherries, peaches (including  nectarines), plums and sloes, fresh:  
0809 30 - Peaches, including nectarines: 
0809 30 90 - - Other: 
0809 30 90 10 - - - From 1 June to 31 August 
0810 Other fruit, fresh: 
0810 50 00 - Kiwifruit: 
0810 50 00 10 - - From 1 November to 31 March  
 
Question 21 
We suggest the following commitment for this section: 63bis.   The representative of Montenegro confir med that Montenegro would not list any "other 
duties and charges" in its Schedule of Concessions and Commitments on Goods under Article II:1(b) of the GATT 1994, binding such charges at "zero" from the date of accession.  
The Working Party took note of this commitment.   
Answer:
 
Montenegro accepts commitment text as suggested.  
- Tariff rate quotas, tariff exemptions 
Question 22 
We suggest the following commi tment text for this section: 
66bis.   The representative of Montenegro stated  that Montenegro would administer and apply 
its tariff rate quotas and tariff exemptions in conformity with the WTO Agreement, including 
Articles I, II, VIII, X and XIII of the GATT  1994 and the Agreement on Import Licensing 
Procedures.  The Working Party took note of this commitment 
Answer:  
Montenegro accepts the commi tment text as suggested.  
- Fees and charges for services rendered 
Question 23 Paragraph 68:  The Draft Report states that "Certi ficates of origin (Form A) were issued by the 
Chamber of Commerce against payment of €8."  Plea se confirm that a certificate of origin is not 
a mandatory customs document fo r importation or exportation. 
Answer:
 
Certificate of origin is not a mandatory do cument for importation or exportation of goods.   WT/ACC/CGR/28 
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 Question 24 
We suggest the following commi tment text for this section: 
71bis.  The representative of Montenegro conf irmed that all fees and charges for services 
applied in connection with importation and export ation would be applied in conformity with the 
WTO Agreement, including Articles VIII and X of the GATT 1994.  He further confirmed that, 
upon request, Montenegro would provide WTO Members with information regarding the 
application and level of such fees and charges,  revenues collected and their use.  The Working 
Party took note of these commitments. 
Answer:  
Montenegro accepts commitment text as suggested.  - Application of internal taxes to imports Question 25 Paragraph 75 states:  "The tax base for impo rted goods was the customs value inclusive of 
import duty and excise tax, if applicable, as well as transportation and distribution costs to the 
first destination in Montenegro." 
Is the excise tax included in the taxable base of domestic goods for the purpose of applying the 
value-added tax?  If not, how can Montenegro’s application of the VAT be consistent with 
Article III?   
Answer:
 
Yes, the excise tax is included in the taxable b ase of domestic goods for the purpose of applying the 
value-added tax.  
Question 26 We suggest the following commi tment text for this section: 
79bis.   The representative of Montenegro confirmed that, from the date of accession, 
Montenegro would apply its internal taxes, incl uding excise taxes and value added taxes, in a 
non-discriminatory manner to im ports from all WTO Members and to domestically produced 
goods, in accordance with the WTO Agreement,  including the Agreement on Agriculture, 
the Agreement on Subsidies and Countervailing Measures and Articles I and III of the 
GATT 1994.  The Working Party took note of this commitment. 
Answer:
 
Montenegro accepts commitment text as suggested.  WT/ACC/CGR/28 
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 - Quantitative import restrictions, including  prohibitions, quota and licensing systems 
Question 27 We appreciate that Montenegro has taken step s to reduce the list of goods subject to non-
automatic import licensing as noted in its Deci sion on Control List for Export, Import and 
Transit of Goods.  
Nonetheless we still consider the list extensive a nd question whether Montenegro is best served 
with such an expansive import licensing regime. 
Answer:
 
The Government of Montenegro has adopted the new Decision on Control List for Exportation, 
Importation and Transit of Goods (RM Official Gazette No. 45/07), which was submitted to the WTO 
Secretariat in July 2007.  The Decision is being submitted once again through 
WT/ACC/CGR/28/Add.1.  In accordance with this D ecision, the total number of goods for which 
import licence is required is 116 or 1.19 per cent of the total number of HS 2007 tariff lines.  The total 
number of goods for which export licence is required is  55 or 0.56 per cent of the total number of HS 
2007 tariff lines.  With the adoption of this Decisi on, the number of goods subject to import or export 
licence has been significantly reduced compared to the previous one.  
The annexes to the Decision, containing goods su bject to licensing in accord ance with international 
agreements binding on Montenegro  and the laws adopted in accord ance with such agreements, are 
integral part of the Decision on Control List, as follo ws:  Annex 2, encompassing the List of Narcotics 
including salts and derivatives, Annex 3 - List of Precursors, Annex 4 - List of Substances Depleting 
the Ozone Layer, Annex 5 - List of Waste, Annex 6 - List of Endangered Plant and Animal Species 
and Annex 7 - List of Protected Rare, Sparse, Endemic and Endangered Plant and Animal Species 
specified in the Decision on Placing Under Protecti on Rare, Sparse, Endemic and Endangered Plant 
and Animal Species.  
International agreements binding on Montenegro are the following: - Convention on Psychotropic S ubstances (SFRY Official Gazette  - International Agreements 
No. 40/73); 
- Uniform Convention on Narcotic Drugs (SFRY Official Gazette - Addendum No. 2/64, 
amendment - SFRY Official Gazette, International Agreements No. 3/78); 
- Vienna Convention on Protection of the Ozone Layer (SFRY Official Gazette - International 
Agreements No. 1/90); 
- Montreal Protocol on Substances Depleting the Ozone Layer (SFRY Official Gazette - 
International Agreements No. 16/90); 
- CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(FRY Official Gazette - International Agreements No. 11/01); and 
- Basel Convention on Transboundary Movement  of Hazardous Waste and its Disposal 
(FRY Official Gazette - International Agreements No. 2/99). 
Question 28 We do not understand why it still contains goods that do not appear to qualify for an exception 
under Articles XX or XXI of the GATT, e. g., steel and household machinery.  WT/ACC/CGR/28 
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 Answer:  
The question has been put forward based on the previ ous list.  In accordance with the provisions of 
the new Decision on Control List for Exportation,  Importation and Transit of Goods (RM Official 
Gazette No. 45/07) steel and household machinery ar e not subject to import licensing.  Montenegro 
believes that by the adoption of the new Decisi on, the licensing regime has been brought into 
compliance with the GATT rules.  
Question 29 
We seek a comprehensive explanation for the rem aining restrictions and a plan for bringing 
them into line with WTO requirements, including Article XI of the GATT. 
Answer:  
Montenegro believes that in its foreign trade regime there are no restrictions that are contrary to the 
WTO requirements, including Article XI of the GATT.  Conditions for introducing licenses for import, export or transit and quantitative restric tions are prescribed in Section II of the Law on 
Foreign Trade (RM Official Gazette Nos. 28/04 and 37/07).  These provisions are in conformity with 
provisions of the GATT 1994, including Article XI.  
Question 30 Could Montenegro also provide additional info rmation regarding the list of products with 
licensing requirements in chapter 85 that it  justifies under the GATT Article XXI(b) and 
Foreign Trade Law Article XX, 2?  Many of these products are noted as "other". 
It would be helpful if Montenegro could provide some additional information as to what types 
of products it sees falling into these categories. 
Answer:
 
In accordance with the Decision on Control List fo r Exportation, Importation and Transit of Goods 
(RM Official Gazette No. 45/07), only goods fro m the tariff line 8523 29 15 00 (unrecorded rigid 
magnetic discs) are on the licensing regime in chapter 85.  
Question 31 
In WT/ACC/CGR/18, Montenegro reports that importers must approach different Government 
agencies to obtain an import licence depending on  the product.  Additionally, the fee to obtain 
an import licence and the validity period for that licence varies by agency. 
Can Montenegro please explain these differences?   This appears to be burdensome for 
importers, especially those who may import mult iple products that need import licenses from 
different agencies. 
Answer:  
The reason why importers must approach different authorities depending on the type of goods to 
obtain import licence is the consequence of specific ities of certain goods.  One authority can not have 
necessary knowledge and information about specific ch aracteristics of all goods.  Such goods are, for 
example, medicines, chemical products used in ag riculture, works of art and items of historical 
importance, and the like.  In those cases, it is in the interest of the importers that the licence is issued WT/ACC/CGR/28 
Page 14  
 
 by the authority that has the expertise for relevant goods, because that is the only way to obtain the 
licence in the shortest possible period.  The list of authorities that are issuing licenses for certain 
goods is contained in the Decision on Control List for Exportation, Importation and Transit of Goods 
(RM Official Gazette No. 45/07), and it is availa ble to all interested importers.  Therefore, 
Montenegro considers that such system is not burdensome for importers.  
With the amendment of the Law on Administrative Fees (RM Official Gazette No. 22/08), the amount 
of fees for obtaining licenses has b een equalized for all types of licenses and brought into compliance 
with the GATT Article VIII.  
Question 32 
We will need to better understand the uses of Mont enegro’s licensing system to evaluate its 
restrictiveness and justification under WTO provisions. 
We seek a commitment from Montenegro on the use of its authority to apply such measures, 
along the following lines: 
89bis.    The representative of Montenegro confirmed that, from the date of accession, 
Montenegro would eliminate and would not intr oduce, re-introduce or apply quantitative 
restrictions on imports or other non-tariff meas ures such as licensing, quotas, bans, permits, 
prior authorization requirements, licensing requirements, and other restrictions having 
equivalent effect, that could not be justified under the provisions of the WTO Agreement, including measures listed in Table xx..  He fu rther confirmed that the legal authority of 
Montenegro to suspend imports and exports or to apply licensing or other requirements that 
could be used to suspend, ban, or otherwise rest rict the quantity of trade would be applied from 
the date of accession in conformity with th e requirements of the WTO Agreement, including 
Articles XI, XII, XIII, XIX, XX, and XX I of the GATT 1994, and the Agreements on 
Agriculture, Sanitary and Phytosanitary Measur es, Import Licensing Procedures, Safeguards 
and Technical Barriers to Trade.  The Work ing Party took note of these commitments. 
Answer:
 
Montenegro accepts commitment text as suggested.  
- Customs valuation 
Question 33 Paragraph 91:  Montenegro states that it has no specific provision for using a guarantee or 
surety in its Customs Law, but that Articles 189 to 200 regulate "generally" the issuance of guarantees for customs debt, and "could be applicable to these circumstances." 
Could Montenegro describe in th e Working Party Report how these articles operate to provide 
the procedures mandated by the Customs Valuation Agreement? 
Answer:
 
The use of guarantee for securing the customs debt is regulated by the Customs Law (RM Official 
Gazette Nos. 07/02 and 66/06) and the Implementing Regulation for the Customs Law (RM Official 
Gazette Nos. br.15/03 and 81/06).  
The guarantee can be placed to secure:  WT/ACC/CGR/28 
 Page 15 
 
 
 - Payment of the existing customs debt; 
- Payment of the customs debt that may be incurred; and - Payment of interest accrued or the interest that may accrue in connection with the customs 
debt covered by the guarantee. 
Customs debtor may place the guarantee to secure the payment of a single customs debt (single 
guarantee) or more than one existing customs debts or customs debt that may be incurred within a 
period of time, and/or in the specific customs procedure (joint guarantee). 
Both single guarantee and joint guarantee can take a form of cash deposit or the bank guarantee issued 
by the bank having the corporate domicile in Montenegro. 
Customs debtor provides the guarantee upon the request of the customs authority. 
The joint guarantee is placed with Customs Administration, which sets the amount of guarantee.  
Customs Administration confirms the receipt of the guarantee.  The filing number of the guarantee is entered into customs documents.  Customs Administ ration promptly inform all the customs authorities 
about the joint guarantee received. 
By issuing a guarantee, a guarantor (a bank) unde rtakes the obligation to cover the customs debt, 
which is not paid by the customs debtor by the due date.  The period cove red by the bank guarantee 
cannot be less than three months, or less than in  which customs debt can incur extended for 60 days, 
as the case may be.  If the term of the guarantee has expired, and the customs debts that were covered 
by such a guarantee have not been paid, in whole or  partly, or if the customs debt can still incur, the 
new guarantee provided by the customs debtor must contain the clause covering debts secured by the previous guarantee.  The bank guarantee can be exte nd before the expiration, whereas the guarantee 
so extended must contain the clause covering debts secured by the initial guarantee. 
Custom debtor may place a cash deposit as a guarantee of payment of the customs debt, by remitting 
the amount to the deposit account of the Customs Ad ministration or the customs house, as the case 
may be.  The cash deposit is re mitted in legal tender (Euro). 
Upon the request of the customs debtor, the customs debtor will return the guarantee, if it determines 
that the customs debt covered by the guarantee has been paid in fu ll and that any additional customs 
debt cannot incur.  
Question 34 
Paragraph 2 of the Decision on Valuation of Carrier Media Bearing Software for Data 
Processing Equipment (Decision 4.1) provides that Members will calculate the valuation of software for data processing equipment on the basis of the value of the media only.  We believe 
this is a useful principle that facilitates technology transfer and liberal trade in high technology 
goods. 
We seek a commitment from Montenegro to adopt paragraph 2 of Decision 4.1 as part of its 
accession to the WTO. 
Answer:
 
Montenegro points out that the paragraph 2 of the Decision 4.1 is already included in its customs 
regulations.  Under Article 43, pa ragraph 1 of the Customs Law, when establishing the customs value 
of software for data processing equipment, the va lue of the software will not be taken into account, 
provided that such value is indicated sep arately from the value of the medium.  WT/ACC/CGR/28 
Page 16  
 
 Question 35 
We seek a commitment from Montenegro on implementation of WTO provisions on customs 
valuation, along the following lines: 
92bis.   The representative of Montenegro confirmed that, as from the date of accession, 
Montenegro would apply the WTO provision s concerning customs valuation, including 
the Agreement on the Implementation of Article VII of the GATT 1994 and Annex I 
(Interpretative Note) and paragraph 2 of the D ecision on Valuation of Carrier Media Bearing 
Software for Data Processing Equipment (Decisio n 4.1), providing that valuation of software 
was based on the value of the media.  He stat ed that Montenegro would not use any form of 
reference or minimum prices or fixed valuation schedules for the valuation of imports and that 
all methods of valuation used would be in conformity with those provided for in the 
WTO Agreement on the Implementation of Article VII of the GATT 1994.  The Working Party took note of these commitments. 
Answer:
 
Montenegro accepts in principle the commitment text as suggested.  However, having in mind the 
answer to the question above, Montenegro suggests the following amended language: 
92bis.  The representative of Montenegro confirme d that, as from the date of accession, Montenegro 
would apply the WTO provisions concerning custom s valuation, including the Agreement on the 
Implementation of Article VII of the GATT 1994 and A nnex I (Interpretative Note).  He stated that 
Montenegro would not use any form of reference or minimum prices or fixed valuation schedules for 
the valuation of imports and that all methods of va luation used would be in conformity with those 
provided for in the WTO Agreement on the Implem entation of Article VII of the GATT 1994.  
The Working Party took no te of these commitments. 
- Rules of origin 
Question 36 We suggest a commitment for this section along the following lines: 
95bis.   The representative of Montenegro confirmed that, from the date of accession, 
Montenegro’s preferential and non-preferential rules of origin, and the implementation thereof, 
would comply with the WTO Agreement on Rules of  Origin.  He further confirmed that, to this 
end, Montenegro would implement Article 2(h) and Annex II, paragraph 3(d) of the WTO Agreement on Rules of Origin in its domestic le gislation and that, accordingly, with respect to 
non-preferential and preferential rules of orig in, the relevant Montenegrin authorities would 
provide, upon request of an exporter, importer or any person with a justifiable cause, an 
assessment of the origin of the import under th e terms outlined in those provisions.  The 
Working Party took note of these commitments. 
Answer:
 
Montenegro accepts commitment text as suggested.   WT/ACC/CGR/28 
 Page 17 
 
 
 - Preshipment inspection 
Question 37 We suggest a commitment for this section along the following lines: 97bis.   The representative of Montenegro confirmed that if pre-shipment inspection 
requirements were to be introduced in the futu re, such requirements would be temporary, and 
would comply with the requirements of the WT O Agreement on Pre-shipment Inspection and 
other WTO agreements.  Montenegro would ensu re that pre-shipment inspection enterprises 
operating on its behalf complied with the provisions of the WTO Agreement, including 
the Agreements on Import Licensing Procedures , Customs Valuation, Technical Barriers to 
Trade, the Application of Sanitary and Phytosani tary Measures, Agriculture, Rules of Origin 
and the GATT 1994.  To this end, charges an d fees of pre-shipment enterprises would be 
consistent with Article VIII of the GATT 1994 and Montenegro would ensure that the requirements and procedures of such entities  would comply with the transparency and 
confidentiality requirements of the WTO Agreement, including Article X of the GATT 1994.  Decisions by such firms could be appealed by importers in the same way and through the same 
procedures as administrative decisions taken by  Montenegro.  The Working Party took note of 
these commitments. 
Answer:
 
Montenegro accepts commitment text as suggested.  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 38 
We suggest a commitment along the following lines: 110bis.   The representative of Montenegro co nfirmed that, from the date of accession, 
Montenegro would not grant or maintain, at any level of Government, export or import-substitution subsidies, within the meaning of Articles 3.1(a) and 3.1(b) of the SCM Agreement.  
He further confirmed that, by the date of accession, Montenegro would provide a subsidy 
notification, in accordance with Article 25 of the SCM Agreement, to the Committee on 
Subsidies and Countervailing Measures.  The Working Party took note of these commitments. 
Answer:
 
Montenegro accepts commitment text as suggested.  
- Technical barriers to trade, standards and certification 
Question 39 
We note the new legislation provided in WT /ACC/CGR/27/Add.3.  We look forward to 
reviewing it and will provide our comments pr ior to the next Working Party meeting. 
The response to Question 15 in WT/ACC/CGR/27 and paragraph 115 of the draft Working 
Party Report outline Montenegro’s plan to revie w its standards and technical regulations and to WT/ACC/CGR/28 
Page 18  
 
 withdraw all standards which are not harmoni zed with the international ones.  Begun in 
December 2007, the review is expected to take more than a year to complete. 
Does this include review of the technical regulat ions contained in the Register of Technical 
Regulations provided to the Working Party in WT/ACC/CGR/22? 
Answer:
 
Yes it does.  Under Transitional provisions of th e Law on Technical Requirements for Products and 
Conformity Assessment of Products with Prescribed  Requirements, Article 28, paragraph 1 provides 
that "technical regulations effective on the date this law enters into force shall be made compliant with 
this Law not later than two years from the date of entering into force", i.e. until 6 March 2010.   
Question 40 
Is it Montenegro’s intention that the harmonizatio n will be complete at the time of accession to 
the WTO? 
Answer:  
Because of the sheer number of technical regulations th at have to be analyzed, it is not likely that the 
work could be finalized by the time of the WTO a ccession.  Under Transitional provisions of the Law 
on Technical Requirements for Products and Confor mity Assessment of Products with Prescribed 
Requirements (RM Official Gazette No. 14/08), tec hnical regulations effective on the date this law 
enters into force shall be made compliant with th is Law not later than two years from the date of 
entering into force (Article 28, paragraph 1), so the process will be finalized on 6 March 2010, at the 
latest.  Please note, that on the day of accession of  Montenegro to the WTO, all mandatory standards 
that are not converted to technical regul ations, will become voluntary standards.  
Question 41 "Decision on Establishing the Accreditation Body of Montenegro":   WT/ACC/CGR/21 stated 
that Montenegro intended to sign agreement with a relevant foreign accreditation body to 
perform accreditation services for them until the accreditation body of Montenegro would be 
fully capable to perform these activities. 
Has Montenegro done that?  If so , which foreign accreditation body? 
Answer:
 
Montenegro has established the Accreditation Body , which, in the meantime has commenced its 
operation in accordance with the Law on Accreditation.   The Accreditation Body of Montenegro is an 
autonomous and independent accredita tion body, which operates in accordance with the rules of the 
WTO TBT Agreement and the international standard ISO 17011.  Therefore, there was no need to 
sign an agreement with a relevant foreign accred itation body to perform accreditation services in 
Montenegro. 
Question 42 
Article 5.2 of the Decision states that accreditatio n rules will be based on Serbian, European and 
international standards.  The TBT  Agreement, however, gives priority status to international 
standards over regional and national standards.   WT/ACC/CGR/28 
 Page 19 
 
 
 Montenegro should clarify in the Working Party Report and revise this provision accordingly in 
its legislation to indicate that it will base its accreditation rules first and foremost on relevant 
international standards, gu ides, and recommendations.  
In addition, we believe that the law should be  revised in light of the Agreement and the TBT 
Committee's Decision on the Development of In ternational Standards (G/TBT/1/Rev.8), which 
clarifies that international standards are tho se developed using an "open, transparent, and 
impartial" approach. 
Answer:  
Montenegro accepts the commitment as suggested and confirms that as of the date of accession 
Montenegro will base its rules of accreditation on rele vant international standards that are developed 
using an open, transparent, and impar tial approach, guides, and recommendations. 
Question 43 
In WT/ACC/CGR/20, Montenegro appears to st ate that Article 20 of the Law on Technical 
Requirements for Products and Conformity Assessment of Products with Prescribed 
Requirements (LTRCA) allows acceptance of confor mity from organizations abroad only if the 
certification is issued "in accordance with int ernational agreements binding on Montenegro." 
Please clarify if the WTO Agreement is one of  these agreements "binding on Montenegro." 
Answer:  
Yes, as of the date of accession, all WTO agreem ents will become "binding on Montenegro".  
Question 44 
Please clarify in the draft Working Party Report Montenegro’s approach to recognizing the 
attestations of international accreditation bo dies, such as those of ILAC member bodies. 
Answer:  
Under Article 24, paragraph 1 of the Law on Tec hnical Requirements for Products and Conformity 
Assessment of Products with Prescribed Requireme nts (RM Official Gazette No. 14/08), certificates 
of conformity and conformity marks issued abro ad will be valid in Montenegro if responsible 
ministries are satisfied that applied conformity pro cedures offer an adequate level of conformity with 
equivalent technical regulations applicable in M ontenegro.  Therefore, ILAC attestations will be 
recognized in Montenegro.  
Question 45 
Article 16 of the Decree on Manner and Procedu res of Conformity Assessment prescribes that 
certificates of conformity and conformity marks that are issued abroad shall be valid in 
Montenegro even if conformity assessment pr ocedures differ from those in effect in 
Montenegro, provided they ensure conformity equivalent to domestic procedures.  Such 
conformity assessment proce dures are considered equivalent: 
- If conformity assessment is performed pursuant to an agreement on mutual recognition 
of conformity assessment results; WT/ACC/CGR/28 
Page 20  
 
 - If conformity assessment is conducted on  the basis of an agreement on mutual 
recognition of technical competence of conformity assessment bodies; or 
- If certificate was issued within intern ational conformity assessment system.  
Pursuant to Article 20 of the Law on Metrology, foreign type approval certificates and 
verification certificates for measuring instrume nts, verification marks and other marks are 
valid in Montenegro, in accordance with int ernational agreements binding on Montenegro. 
Please confirm if Montenegro’s regime for conformity assessment incorporates the provisions of 
Articles 6.1 and 6.4, i.e., that it reflects op tions for achieving confidence in the technical 
competence of bodies located in the territory of other WTO Members to perform conformity 
assessment and have their results accepted by Montenegrin authorities, including: 
- The conclusion of an agreement with a conf ormity assessment body in another Member 
(e.g., accreditation bodies; certif ication bodies, laboratories); 
- The acceptance of the results of conformity  assessment procedures within international 
product testing and certification systems of which Montenegro is a participant; 
- The acceptance and non-discrimi natory consideration of applications for accreditation 
from conformity assessment bodies located in  other WTO Members, even in the absence 
of a mutual recognition agreement; and 
- The acceptance of conformity assessment results from conformity assessment bodies 
recognized by Montenegro; and other means of recognition of equivalent procedures. 
Montenegro should prepare a draft "Statement  on Implementation" for Working Party review 
prior to the next Working Party meeting, to  allow Members to be able to assess the 
improvements made in its regime through the new legislation.   
Answer: 
 
The regime of conformity assessment procedures a pplied in Montenegro includes provisions of 
Articles 6.1 and 6.4 of the TBT Agreement.  The Government of Montenegro will issue a regulation 
that will regulate the issue in detail, not later than  30 June 2008.  The regulation will be  available to 
the Working Party.   
- Sanitary and phytosanitary measures 
Question 46 We look forward to reviewing the revised laws  in this area when they are completed.  
We are pleased to see that Montenegro seeks to base its SPS measures on scientific principles 
and international standards.  We are also pleased to see that Montenegro references the 
requirement to notify the WTO of SPS measu res and the concept of recognizing different 
measures which attain the same appropriate le vel of protection as equivalent.  We are 
encouraged by Montenegro’s progress and we l ook forward to working with Montenegro 
during the accession process.   
We understand that Article 18 of the Food Safe ty Law, entitled "Precautionary Principle", 
seeks to allow adoption of temporary measures in the absence of sufficient scientific 
information.  We note that Article 5.7 of th e SPS Agreement already allo ws for such temporary 
measures.    WT/ACC/CGR/28 
 Page 21 
 
 
 Could Montenegro please clarify why it need s a specific section of the Food Safety Law 
regarding this issue, and why it is titled ‘Precautionary Principle.’  
As there is no internationally agreed-upon prin ciple on precaution, could Montenegro please 
clarify what is meant by "Precautionary Principl e."  We also request that Montenegro please 
clarify ‘high level of protection,’ as there must be  parameters regarding levels of protection in 
order to ensure that trade is not hindered unnecessarily.  
Answer:  
This is the issue of legal tradition and legal techni que in Montenegro. One segment of the law (part, 
section, chapter) usually covers one topic.  Thus, in  the Food Safety Law one segment is dedicated to 
the "precautionary principle", which comprises and emphasizes general principles of the Food Safety 
Law and the procedures applicable to food safety, nota bly: risk analysis, transparency, participation of 
the public and protection of consumers’ interests. 
Precautionary principle is the principle that is applied in certain situations, when based on the 
available information, but before the scientific conf irmation, it has been dete rmined that the health 
may be subject to harmful influence.  In such a case, temporary measures for the risk management 
necessary for providing high level of protection of h ealth may be adopted in Montenegro, which will 
be effective until other scientific information nece ssary for more comprehensive risk analysis is 
available. 
These measures are introduced in accordance with Chap ter VII of the General Obligation in Trade in 
Food and Feed - Food and Feed Safety Measures in International Trade and Articles 54-60 of the 
Food Safety Law, and they cannot be more trade re strictive than necessary for providing high level of 
protection of health.  The measures are applied in the same manner in internal and foreign trade, 
regardless of the origin of goods. 
Question 47 
Regarding Article 35 of the Food Safety Law, the phrase "novel foods" appears.   Will Montenegro please provide examples of a novel food.   
Answer:
 
The ultimate goal of Montenegro is to join the Eu ropean Union.  Therefore, the phrase "novel foods" 
has been introduced in compliance with the EU re gulations in this area (Regulation (EC) No 258/97 
of the European Parliament and of the Council of 27 January 1997 con cerning novel foods and novel 
food ingredients). 
The examples of novel foods include, inter alia , the following: 
- Riboflavin from Bacillus subtilis as nutrient; 
- Yoghurt type products w ith added phytosterols; 
- Microalga Odontella aurita; - Juice of the fruits of Morinda citrifolia; and - Noni juice (juice of the fruits of Morinda citirfolia). 
Question 48 Also regarding Article 35 of this law:  WT/ACC/CGR/28 
Page 22  
 
 While the opening sentence of Article 35 states that it does not include foods derived from 
genetic-engineering, the examples given make it di fficult categorically to exclude foods derived 
from genetic-engineering under the broader defini tions of a "novel food".  For example, it 
seems like foods nutritionally-enhanced through genetic engineering would by default fall under the fourth category describing novel foods as, "f ood or food ingredients obtained through a 
technological process that hasn’t been used in the past, where such process significantly changes 
composition or structure of food or food ingredients and therefore affects their nutritional value, human metabolism, or level of subs tances acceptable for human consumption." 
Will Montenegro please clarify whether any foods derived from genetic-engineering also could 
be considered novel foods, and thereby also fall under the provisions of Article 35.  
Answer: 
 
No, any foods derived from genetic-engineering coul d not be considered novel foods, and thereby 
cannot fall under the provisions of Artic le 35 of the Food Safety Law.   
Question 49 
Regarding Articles 35 and 36 of the Food Safety La w, the articles state that the "Categories of 
food referred to in paragraph 1 of this Article must  not:  [...] differ from food or feed, or food or 
feed ingredients, which, according to the inte nded use, categories of genetically-modified food 
should substitute, to an extent that wo uld alter its nutritive value and safety." 
Would this provision apply to foods or feeds that have been nutritionally-enhanced through 
genetic engineering, where there are no safety issues identified and where the nutritionally-
enhanced food product can be beneficial for consumers?  
Answer:  
No, it would not. 
Question 50 
Also, regarding Articles 35 and 36 of the Food Safety Law, the articles state that the 
"Categories of food referred to in paragraph 1 of  this Article must not:  […] mislead the final 
consumer." 
Please explain how these categories of food might mislead consumers.  
Answer:  
Articles 35 and 36 of the Food Safety Law actually refe r to the correct labelling of food.  It is deemed 
that consumers may be mislead if the food is correctly  labelled, i.e. if its ingredients are not correctly 
displayed.  
Question 51 We are pleased to see that Montenegro is a member of the OIE, and since the last Working 
Party meeting, has joined the FAO, which is a precondition to joining the IIPC and Codex. 
In WT/ACC/CGR/26, Action Plan for SPS, Mont enegro states that the National Council for 
Assessment of Safety of Food will be responsible fo r food safety issues and data in Montenegro.    WT/ACC/CGR/28 
 Page 23 
 
 
 Will it have any role in the regulat ion of products of biotechnology?  
Answer:  
The National Council for Assessment of Safety of  Food cooperates with relevant bodies responsible 
for the regulation of products of biotechnology.  
- Trade-related investment measures 
Question 52 
Paragraph 134:  We take note of Montenegro ’s intent to abolish the requirement in 
Montenegro’s new Law on Tobacco that requi res domestic producers to purchase a certain 
quantity of domestically produced tobacco p er year by 31 December 2011.  We suggest the 
following commitment: 
136bis:  The representative of Montenegro confirmed that from the date of accession, 
Montenegro would apply its investment reg ime in compliance with the WTO Agreement, 
including the Agreement on Trade-Related Investment Measures (TRIMs), in a non-discriminatory manner to im ports from all WTO Members and to domestically produced 
goods.  The sole exception to this WTO-consiste nt implementation of Montenegro’s investment 
regime would be the requirements in the Law on Tobacco that tobacco manufacturers purchase 
certain quantities of domestically produced tobacco.  He further confirmed that these 
requirements would expire on 31 December 2011.  The Working Party took note of these 
commitments. 
Answer: 
 
The provision on the obligation of domestic manufact urers to buy specified quantity of domestically 
produced tobacco has been abolished.  Theref ore, there is no need for the commitment. 
- State-trading entities 
Question 53 We appreciate Montenegro’s statement that it  does not have any State-owned or private 
enterprises with exclusive or special rights or privileges, and therefore will not be notifying any 
such enterprises as called for in Article XVII of the GATT 1994 and the Understanding on that 
Article.   
The obligations of Article XVII, however, apply not only to State-trading enterprises, but also to 
those enterprises owned or controlled by the Stat e, regardless of their privileged trading status. 
We would therefore appreciate, given the absence of enterprises with special or exclusive 
privileges in Montenegro, a description of Mont enegro’s largest State-owned and -controlled 
enterprises, including information on the sectors in  which they operate, the extent of the State’s 
involvement in the commercial decisions of th e enterprise (e.g., through participation on 
management boards or requirement of St ate approval of board decisions), and any 
laws/regulations governing the sales/purch asing decisions of those enterprises. WT/ACC/CGR/28 
Page 24  
 
 Answer:
 
The Privatization Council decides on privatization.   At the moment, more than 85 per cent of the 
(formerly) State-owned capital has been privatized.  The sale of State-owned capital is administered in 
accordance with the following regulations: 
- The Law on Privatization of the Economy (RM Official Gazette Nos. 23/96, 6/99, 59/00 
and 42/04); 
- Regulation on Sale of Shares and Assets by Public Tender (RM Official Gazette No. 20/04); 
- Regulation on Sale of Shares and Assets by Public Bid (RM Official Gazette Nos. 8/99, 
31/00, 14/03 and 59/03)); and 
- The Law on Insolvency of Companies (RM O fficial Gazette Nos. 06/02, 01/06 i 02/07). 
The Privatization Plan for 2008 is availa ble through document WT/ACC/CGR/28/Add.1. 
Question 54 
We offer the following commitment for this section: 137bis.   The representative of the Montenegro confirmed that, from the date of accession, 
enterprises that are State-owned or controlled,  and enterprises with special or exclusive 
privileges, would make purchases of good s and services, which were not intended for 
governmental use, and sales in internatio nal trade in accordance with commercial 
considerations, including price, quality, availability, marketability, and transportation, and would afford enterprises of other WTO Members adequate opportunity in conformity with 
customary practice, to compete for such purchases or sales.  Such enterprises would also act in 
conformity with other WTO provisions.  He also  confirmed that Montenegro would notify any 
enterprises falling within the scope of the Understanding on Article XVII of the GATT 1994 
upon accession.  The Working Party took note of these commitments. 
Answer:
 
Montenegro accepts commitment as suggested.  
- Free zones, special economic areas 
Question 55 
Paragraph 140, pp. 51-52:  Could Montenegro provide a copy of the amended Law on Free 
Zones (RM OG No. 11/07) for review by the Work ing Party, and explain how the local content 
provisions under Article 21 of the old law (RM OG No. 42/04) have been made consistent with 
the SCM Agreement under the amended law? 
Answer:  
The Law on Free Zones has been amended and submitted to the Working Party in July 2007.  It is 
submitted again through docume nt WT/ACC/CGR/28/Add.1. 
Question 56 
We suggest that the material on Free Zones cu rrently in the Working Party Report section on 
TRIMs be moved to this section, and the follo wing edited and new text be inserted after 
paragraph 140:  WT/ACC/CGR/28 
 Page 25 
 
 
 140.   Goods processed in a free zone and subse quently sold in Montenegro were not subject to 
customs duty or customs charges on the domestic  component (raw materials, labour, etc.) in 
these goods.  More favourable conditions app lied when the domestic component exceeded 
50 per cent (see "Trade-Related Investment Measures).  She later noted that the Law had been 
amended to be brought into compliance with WTO rules (RM  OG No. 11/07) .   
140bis.   A Member noted that the Law on Free Zones (RM OG No. 42/04) also appeared to 
exempt goods processed in a free zone in Monten egro from customs duties and charges on the 
domestic component in such goods.  Once the component exceeded 50 per cent, such goods would not be subject to restrictions related to th e foreign trade regime.  If no import duties or 
charges were applied in such instances, this  provision would constitute a local content 
requirement incompatible with Article III:5 of the GATT 1994 and Article 3 of the Subsidies 
Agreement, and the provision would need to be abolished.   
140ter.   In reply, the representative of Monteneg ro said that Article 21 of the Law on Free 
Zones (RM OG No. 42/04) stipulated that goods im ported into Montenegro from a free zone 
were subject to customs duties, customs charges, VAT, and import restrictions (if applicable).  
Customs duties and charges were not payable on domestic materials and labour incorporated 
into the goods while in the zone.  Once the domestic component exceeded 50 per cent, goods 
imported from the zone were considered to be "domestic goods" and were not subject to 
restrictions related to the foreign trade reg ime (i.e., quantitative restrictions, licenses, 
antidumping and countervailing duties and safegu ards measures).  Customs duties and other 
charges were payable, but decreased according to the percentage of domestic component in the 
goods.  She later noted that the Law had been amended to be brought into compliance with 
WTO rules (RM OG No. 11/07) 
140quater.   The representative of Montenegro co nfirmed that, from the date of accession, free 
zones or free economic zones established in Montenegro, including those referred to in 
paragraphs 140-140ter, would be administered in compliance with WTO provisions, including 
the Agreements on TRIPS, TRIMs, and Subsidi es and Countervailing Measures.  He further 
confirmed that the right of firms to establish a nd operate in these zones would not be subject to 
export performance, trade balancing, or local content requirements, and that goods imported 
into, or produced from inputs imported into, these zones that were exempt from tariffs and certain taxes would be subject to normal cust oms formalities when entering the rest of 
Montenegro, including the application of tariffs and taxes on the imported components in the 
goods.  The Working Party took note of these commitments. 
Answer:
 
Montenegro accepts edits a nd commitment as suggested.  
- Government procurement 
Question 57 
We suggest the following commitment lang uage be added after paragraph 144: 
144bis.    The representative of Montenegro confirmed that Montenegro would initiate 
negotiations for membership in the Agreement on Government Procurement upon accession by 
tabling an entity offer at that time.  He also co nfirmed that, if the result s of the negotiations were 
satisfactory to Montenegro and the other me mbers of the Agreement, Montenegro would 
complete negotiations for membership in the Agreement by 31 Decemb er 2009.  The Working 
Party took note of these commitments. WT/ACC/CGR/28 
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 Answer:
 
Montenegro accepts commitment language as suggested.  
- Transit 
Question 58 We suggest the following commitment la nguage be added to this section: 
146bis.    The representative of Montenegro co nfirmed that Montenegro would apply all its 
laws, regulations and other measures governing transit of goods (including energy), such as those governing charges for transportation of go ods in transit, in conformity with the WTO 
Agreement, including  Article V of the GATT 1994.  The Working Party took note of this 
commitment. 
Answer:
 
Montenegro accepts commitment language as suggested.  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- ENFORCEMENT Question 59 
In paragraph 197, of the Draft Workin g Party Report (WT/ACC/SPEC/CGR/4),  it is stated that 
damages are determined on the basis of direct losses and that  when filing a case, the plaintiff 
has to specify the amount of damages and submit evidence to support the claim.  It is further 
stated that if the defendant objects to the pr oposed amount, damages are calculated by an 
expert appointed by the Court. 
If the plaintiff bears the burden of specifyin g the amount of damages sought and supplies 
evidence to support the claim, is there an equa l burden placed on the defendant to produce any 
evidence to support its objection?  Or, is the expert’s review triggered solely by defendant’s 
conclusory objection?  
Answer:
 
Montenegro believes that there is no burden on th e defendant.  Under the Montenegrin legal system, 
the plaintiff must specify a claim, which is impor tant, inter alia, for the jurisdiction and the venue. 
Defendant has to produce evidence to support its objec tion, i.e. bears the burden of proof of its 
objections.  The expert’s review is not triggere d solely by defendant’s conclusory objection.  
Question 60 
In paragraph 199, of the Draft Workin g Party Report (WT/ACC/SPEC/CGR/4),  it is stated that 
the representative of Montenegro noted that Ar ticle 47 of TRIPS, does not oblige Members to 
give judicial authorities the power to order an  infringer to inform the right holder of the 
identity of third persons involved in the produc tion and distribution of infringing goods and 
services.  Nonetheless, such a provision had been  included in the Law on Copyright and Related 
Rights (Article 185), but not in the Law on Patents.  WT/ACC/CGR/28 
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 Does Montenegro intend to bring its trademark a nd patent laws into parity with the Law on 
Copyright and Related Rights? 
If no, why create a disparity, in terms of the remedies available, for copyrights versus 
trademarks?  
Answer:  
Yes, Montenegro intends to bring its trademark and patent laws into parity with the Law on Copyright 
and Related Rights, by including the provision of TRIPS Article 47. 
Question 61 
In paragraph 201 of the Draft Workin g Party Report (WT/ACC/SPEC/CGR/4),  it is stated that 
the representative of Montenegro noted th at provisional measures could be ordered inaudita 
altera parte  if there was a demonstrable risk that pertinent evidence might be destroyed or 
impossible to obtain at a later stage.   
Does this apply to both copyright as we ll as trademark infringement actions? 
Answer:  
Yes it does. Question 62 "The Law on Protection of Undisclosed Inform ation":  In Article 9.3.1 of "The Law on 
Protection of Undisclosed Information", the inclusion of "or promote" extends the exception beyond that allowed for in TRIPS Article 39.3, which only uses the term "protect". 
We believe this should be  amended and clarified. 
Answer:
 
Montenegro respectfully disagrees.  TRIPS Article 39.3, provides for the obligation of Members to 
protect data against unauthorized disclosure, "e xcept where necessary to protect the public".  
Montenegro believes that the meaning of the term  "to protect the public" is broad enough to include 
protection and promotion of public health, environmen t and public interest.  Montenegro also believes 
that promotion of certain values is an inse parable part of protection of such values. 
Question 63 "The Law on Protection of Undisclosed Inform ation" provides for five years of protection 
against unfair commercial use in Articles 9.4 and 9. 5.  However, Article 9.5 specifically refers to 
the Law on Medicines and the Law on Medical Devices. 
In spite of these specific cross-references to the Laws on Medicines and Medical Devices, does 
Article 9.5 cover agricultural chemical products , or is there another Law that covers these 
products? WT/ACC/CGR/28 
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 Answer:
 
The period referred to in Article 9.5. establishes th e minimal term of protect ion, which also covers 
agricultural chemical products. 
VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 64 
"Law on Banks":  Could Montenegro give us its definition of a "joint-stock corporation"?  Is 
this term used interchangeably with "corporation"? 
Answer:  
The Law on Companies (RM Official Gazette No. 6/02 and Official Gazette of 
Montenegro No. 17/07) defines joint-stock companie s as companies of natural or legal persons which 
are established for the purpose of performing econom ic activity, and whose capital has been divided 
into shares.  The name of the joint-stock company must include the designation "joint-stock company" 
or abbreviated designation "AD".  The Law does not prescribe the use of the term "corporation", but there are no prohibitions to use such a term.  Th e part of the foreign company must contain the 
original name of the foreign company and the d esignation or abbreviated designation indicating the 
form of such company, which may include the use of names "company", "corporation" or the like. 
The registration of all forms of companies is admi nistered by the Central Register of the Commercial 
Court.   
Question 65 
Will foreign banks have to provide the same ca pital requirements for branches and subsidiaries 
as domestic banks? 
Answer:
 
The Law on Banks (Official Gazette of Montenegro  No. 17/08) does not make a distinction between 
foreign and domestic banks with regard to th e capital requirements for establishing branches or 
subsidiaries.  The same requirements are a pplicable to domestic and foreign banks.  
Question 66 
We also very much appreciate and support the explicit authorization for branches and 
representative offices of foreign banks contained in the "Law on Banks."  We would equally 
support similar provisions for fo reign insurance companies.  
Does Montenegro have any plans in this regard? 
Answer:  
Taking into account the level of development of th e insurance market in M ontenegro, as well as the 
capacity for supervision of the insurance service s at the present moment, further liberalization, 
including opening of subsidiaries, may not be  adequately implemented before 2012.  
The transitional period is necessary in order to achieve independence and higher quality of the 
supervisory function.  In accordance with the new law governing insurance, the Agency for 
Supervision of Insurance has been established, whic h has become operational in January 2008, and it  WT/ACC/CGR/28 
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 will become fully operational by the end of 2011.  The Agency for Supervision of Insurance is an 
independent regulatory body whose main tasks are to protect interests of policy holders and other 
users of insurance, to ensure stability and deve lopment of the insurance activity based on the free 
competition and equal business conditions.  
In the area of institutional development and capac ity building, in the period 2008-2011 the Agency 
plans to establish the cooperation with other regul atory bodies in the region and sign memoranda on 
technical cooperation, in order to implement the best international practices in the Montenegrin 
insurance supervision system.  In addition, the inte nsive training of personnel will be one of the main 
tasks of the Agency in this period.  In the le gislative area, the adoption of by-laws required for 
implementation of the Law on Insurance is planned.  
 
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