RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/CGR/17 
14 December 2006 
 (06-6001) 
Working Party on the 
Accession of Montenegro Original:   English 
 
 
 
ACCESSION OF MONTENEGRO 
 
Additional Questions and Replies  
 
 
 The following submission, dated 8 December 2006, is being circulated at the request of the 
Delegation of the Republic of Montenegro.   
_______________ 
  WT/ACC/CGR/17 
 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  
(d) Foreign and domestic in vestment policies ..............................................................................2  
(f) Privatization policies......................................................................................................... ........3  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................6  
4. Any legislative programmes or plans to change the regulatory regime...............................6  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................7  
1.  Import Regulation.............................................................................................................. .......7  
(a) Registration requirements for engaging in importing...........................................................7  
(d) Other duties and charges, specifying any changes for services rendered............................9  
(e) Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ ...............9  
(f) Import licensing procedures ..................................................................................................10  
(g)  Other border  measures.......................................................................................................... .14 
(h) Customs valuation.............................................................................................................. .....15  
(l) Rules of origin ................................................................................................................ .........16  
3. Internal policies affecting foreign trade in goods.................................................................16  
(a) Industrial policy, including subsidy policies.........................................................................16  
(b)  Technical regulations and standards ....................................................................................19  
(c) Sanitary and phytosanitary measures...................................................................................20  
(g) Free economic zones ............................................................................................................ ...22 
4. Policies affecting foreign trade in agricultural products.....................................................23  
(a) Imports........................................................................................................................ .............23  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................23  
1. General........................................................................................................................ .............23  
(c) Membership of international intellectua l property conventions and of regional 
or bilatera l agreements........................................................................................................ ...24 
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................24  
(c) Geographical indications, including appellations of origin.................................................24  
(e) Patents........................................................................................................................ ..............26  
(f) Plant variety protection....................................................................................................... ...28 
(h) Requirements on undisclosed information, including trade secrets and test data............29  
4. Enforcement .................................................................................................................... ........30  WT/ACC/CGR/17 
Page ii  
 
  ANNEX .......................................................................................................................... .......................31
  WT/ACC/CGR/17 
 Page 1 
 
 
 II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
2. Economic Policies (a) Main directions of the ongoing economic policies - Pricing policies Question 1 
Regarding the Law on Emergency Procurement (RM OG No. 69/03), discussed in Montenegro's 
Foreign Trade Memorandum (WT/ACC/SRB/3), over what products and services does this law 
empower the government to establish prices?  Un der what conditions can the government exert 
such powers?  How does the new law ensure th at price controls will not be applied in a 
prejudicial manner, consistent with Article III:9 of the GATT? 
Answer:
 
It appears to be a misunderstanding.  The followi ng has been said in the Foreign Trade Memorandum 
regarding the Law on Emergency Procurement (RM OG No. 69/03):  "In December 2003, the Law on 
Emergency Procurement (RM OG No. 69/03) was en acted and thus the Law on Commodity Reserves 
(RM OG No. 56/92, 69/03) was abolished.  Therefore, the Government has no instruments to 
influence determination of the prices for products, since the Directorate for Commodity Reserves no 
longer exists."   
The Law on Emergency Procurement does not provide the power for the Government to impose price 
control.  
Question 2 
We are pleased to see that Montenegro has abo lished the Law on Social Price Control, as 
indicated in response to Questions 1 and 3 of WT/ACC/CGR/10.  However, we notice that the 
Legislative Action Plan (WT/ACC/CGR/11) includes a new Price Control Law, which passed the Parliament in April 2006. 
Please provide the Working Party with a translation of this law. It appears that with the abolition of the Law on Social Price Control, the government has the 
authority to impose price controls only on certai n medicines, oil and oil derivatives, and coal. 
Please confirm our understanding. 
For what other products and services does the ne w law give the Government power to establish 
prices?   
How does the new law ensure that price controls will not be applied in a prejudicial manner, 
consistent with Article III:9 of the GATT? 
Answer:
 
Please note that the Law on Abolishment of the Law on Social Price Control (RM OG No 27/06) has 
been enacted.  Therefore, it was not the new law est ablishing price control but rather the law that has 
abolished the old law.  Montenegro apologizes for th e mistake made in Legislative Action Plan for the 
second Working Party meeting. WT/ACC/CGR/17 
Page 2  
 
 In addition, the Law on Abolishment of the Law on Social Price Control abolished price control for 
all products except medicines, oil and oil de rivates and coal, as you noted correctly.  
A translation of the Law on Abolishment of the La w on Social Price Control can be obtained through 
document WT/ACC/CGR/17/Add.1.  
Question 3 
Regarding the response to Question 2 of WT/ ACC/CGR/10, we look fo rward to reviewing the 
list of medicines for which the government can establish prices.   
When does Montenegro expect this decree to be  adopted?  Prior to the next Working Party 
meeting, please update the Legislative Action Plan to include this decree.  
Answer:
 
The Ministry of Health is currently working on a draft decree which will regulate prices of medicines. 
The draft decree will be provided to the Working Party as soon as it is available. 
Question 4 
In response to Question 4 of WT/ACC/CGR/10, Mont enegro states that with the abolition of the 
Law on Social Price Control, it no longer has the authority to establish prices on agricultural 
products.  Does this law abolish the authority to impose price controls on all products (except 
certain medicines, oil and oil derivatives, and coal)?   
Answer:  
Yes, the Law on Abolishment of the Law on Social  Price Control abolishes price control for all 
products except for medicines, oil and oil derivatives and coal.  
Question 5 
In response to Question 7 of WT/ACC/CGR/10, Montenegro explains that the price for coal 
shipped to the Power plant Pljevlja is established every five years.  
Does the government establish the price of coal to other purchasers?   Do these price controls apply to all sources of coal for the Power plant Pljevlja, or just to 
domestic suppliers of coal?   
Answer:
 
The Government of Montenegro establishes prices of  coal used for production of electricity by the 
Power Plant Pljevlja.  This price control is applie d only to domestic suppliers of coal shipped to 
Power Plant Pljevlja. 
(d) Foreign and domestic investment policies 
Question 6 
Statement:   In response to Questions 14 and 18 of WT/ACC/CGR/10 Montenegro indicates that 
it is considering amendment to its Law on Foreign Investment (RM OG No. 52/00).  We note,  WT/ACC/CGR/17 
 Page 3 
 
 
 however, that this law is not included in Monteneg ro's Legislative Action Plan.  Prior to the next 
Working Party meeting, please update the Legislat ive Action Plan to include these amendments.  
Answer:  
The Law on Foreign Investment will be amended prior to accession of the Republic of Montenegro to 
the WTO.  Please see document WT/ACC/CGR/12/Rev.1. 
Question 7 WT/ACC/CGR/10, Question 18:  Please provide an  update on amending the Foreign Investment 
Law.  What is the timeframe for amending the Law?  
Answer:
 
The Law on Foreign Investment will be amended prior to accession of the Republic of Montenegro to 
the WTO.  Please see document WT/ACC/CGR/12/Rev.1. 
(f) Privatization policies 
Question 8 WT/ACC/CGR/10, Question 23:  The privatization report in WT/ACC/CGR/13 states that 
70.5 per cent of companies that had an elemen t of state ownership in the past are now 
completely privately owned.  Please provide a list of the remaining 30 per cent of companies 
along with any plans to privatize them in 2006/2007 or in the further future.  
Answer:
 
Please see tables provided below with data about remaining companies to be privatized in 
Montenegro. 
Question 9 
We thank Montenegro for the informatio n provided in the Privatization Report, 
WT/ACC/CGR/13.   
Some of the companies listed in WT/ACC/CGR/13  are not on the list of state-owned companies 
in response to Question 48 of WT/ACC/CGR/7.   Is that discrepancy because the list in 
WT/ACC/CGR/7 is of companies with more than  40 per cent government ownership?  If not, 
please explain the discrepancy. 
Answer:  
The reason why some of the companies listed in WT/ACC/CGR/13 were not included in the list of 
state-owned companies in response to Question 48 of WT/ACC/CGR/7 was an imperfection of database at that time. Now, more accurate informa tion on ownership structure is available that is 
included in the tables bellow. In addition, in th e meantime (from July 2005) a number of companies 
have been privatized.  Following lists include comp anies that have majority state ownership (more 
than 50 per cent of shares). WT/ACC/CGR/17 
Page 4  
 
 1.  Companies to be privatized by public tender 
(a) Companies for which public tender is ongoing
 
No Company Activity % of state capital for privatization 
1 "Termoelektrana Pljevlja" Energy services Assets of "Elektroprivreda Crne 
Gore"AD, Nikši ć 
2 Center for relaxation, recreation 
and health ther apy Igalo AD Relaxation, recreation and 
health therapy services 80.9642% 
 
(b) Companies whose shares are to be sold by public tender  
No Company Activity % of state capital for 
privatization 
1 Institut "Dr Simo Miloševi ć"AD, Igalo Health services  
2 "Duvanski kombinat" AD, Podgo rica Tobacco industry 51.1046% 
3 "Jadransko brodogradilište" AD, Bijela Shipbuilding 62.7090% 
4 "Montepranzo-Bokaprodukt" AD, Tivat  75.0557% 
5 HTP "Boka" AD, Herceg Novi Tourism services 59.3211% 
6 "Optel" AD, Pljevlja Production of optic, electronic 
and microwave systems 53.2225% 
7 "Poliex" AD, Berane  46.4052% 
8 "Institut crne metalurgije" AD, Nikši ć Metallurgy 54.9732% 
9 AD "Marina", Bar Tourism (n autical) services 51.3440% 
10 "Barska plovidba", Bar Shipping company 51.2323% 
11 DOO "Montenegro bonus", Cetinje Trade 100% 
 
(c) Privatization strategies will be prepared and privatization   
will commence for the following companies  
No Company Activity % of capital for privatization 
1 HTP "Budvanska rivijera" AD, Budva Tourism services 58.7334% 
2 "Elektroprivreda Crne Gore"AD, Nikši ć Energy services 67.6599% 
3 "Plantaže" AD Podgorica Agriculture 54.2314% 
4 "Željeznice Crne Gore" AD, Podg orica Railway transport 65.7465% 
5 "Luka Bar"AD, Bar Transport services 
(port) 54.0527% 
6 JP "Aerodromi Crne Gore", DOO Podgorica Air transport 
infrastructure 
services 100% 
7 "Montenegro airlines", DOO Podgorica Air transport 99% 
 
2. (a) Companies to be privatized thro ugh auction, i.e. stock exchange sale1 
No Company Activity % of capital for privatization 
1 Agrotransport Podgorica, Podgorica Transport services 66.0228% 
2 "Bisernica", Rožaje Trade 76.0296% 
3 Gross-market, Podgorica Trade 65.9345% 
4 Jugooceanija AD, Kotor Tran sport services 51.0184% 
5 Nibus AD, Niksic   Transport services 51.8795% 
6 Preduze će za izgradnju Podgorice AD, 
Podgorica Construction 
services 52.7915% 
7 Prehrana, Pljevlja Trade 72.8461% 
                                                      
1 These companies have minority share in GDP of Montenegro.  WT/ACC/CGR/17 
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 No Company Activity % of capital for privatization 
8 Prekookeanska plovidba, Bar Transport services 51.3441% 
9 AD "Riviera" , Kotor Production of 
cosmetic products  66.3139% 
10 AD "Uzor" Rožaje Tourism services 70.00045% 
11 Zimosport  AD, Žabljak Protection and 
production of 
medical equipment for convalescents 
and sportsmen 87.7823% 
 
2. (b) Companies from the area of specific-purpose in dustry and forestry that are to be privatized  
No Company Activity % of capital for privatization 
1 Šumarsko preduze će "Bijelo Polje" Wood industry 85.0740% 
2 Šumarsko preduze će AD "Danilovgrad" Wood industry 77.8203% 
3 Šumarsko preduze će "Kolašin" Wood industry 68.1091% 
4 Šumarsko preduze će "Pljevlja" AD Wood industry 81.8200% 
5 Šumarsko preduze će "Podgorica" AD Wood industry 75.0900% 
6 Šumarsko preduze će "Rožaje" AD Wood industry 70.0016% 
7 Šumarsko preduze će "Šavnik" AD Wood industry 60.3900% 
8 Šumarsko preduze će "Žabljak" Wood industry 82.5400% 
 
Question 10 
Please explain the relationship between the list of enterprises in WT/ACC/CGR/13 and the list 
of enterprises provided in response to Question 48 of WT/ACC/CGR/7. 
Answer:  
Please see the answer above. Question 11 For those companies in which the government retains a minority share, does the government 
nevertheless retain control over the management of the company?   
Answer:
 
The Government does not retain control over the ma nagement in these companies.  The Government 
minority share is privatized through an auction, i.e. stock exchange sale. 
Question 12 Are there any other enterprises, beside those accounted for in the Privatization Report, over 
which the government exerts control?  Please li st the companies and describe the means of 
government control.  
Answer:
 
The Government exerts control over companies include d in the lists above that have majority state 
capital.  The Government, as a majority shareholder, exerts its control in the manner identical to any 
other majority shareholder in any other company. WT/ACC/CGR/17 
Page 6  
 
 Question 13 
What percent of the economy, measured by GDP, remains under State control? 
Answer:
 
No data available. Estimate shows that percent of  the economy (measured by estimated value of the 
company capital), which is still under state control, is less than 15 per cent. 
Question 14 Montenegro mentions "socially-owned" co mpanies in response to Question 49 of 
WT/ACC/CGR/7.   Do any socially-owned compan ies remain in Montenegro?  If so, please 
describe how they differ from state-owned comp anies.   In addition, what percentage of 
domestic GDP do they represent? 
Answer:
 
Two types of ownership were dominant in Monten egro before 1989:  state ownership and social 
ownership. Process of change of ownership in Montenegro has been started with the Law on 
ownership and management transformation (RM OG No. 02/92, 27/94, 23/96). 
According to this Law, all companies had obliga tion to become incorporated and establish a capital 
with personalized ownership structure.  U nder the Law, the capital was distributed to: 
− employees (up to 10 per cent free + up to 30 per cent under specific privilege conditions); and  
− three state funds (Development Fund, Pension Fund and Employment Fund) 
Therefore, under this Law, the social ownership in Montenegro was eliminated and the capital has 
been distributed between employees and the state (ratio was 60 per cent or more in favour of the Funds and 40 per cent or less for employees).  Today,  most of these transformed companies have been 
privatized. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
4. Any legislative programmes or plans to change the regulatory regime Question 15 We thank Montenegro for providing the Workin g Party with an updated Legislative Action 
Plan.  However, we note that implementing reg ulations, decisions or by-laws, which typically 
provide the practical details for the operation of legislation and many of which are mentioned in 
Montenegro's responses, do not appear on the Pl an.  Prior to the next Working Party, please 
amend Montenegro's Legislative Action Plan to  include information on the development of 
implementing regulations, decisions or by-laws, as appropriate. 
Answer:
 
Please see document WT/ACC/CGR/12/Rev.1.  WT/ACC/CGR/17 
 Page 7 
 
 
 Question 16 
In its Legislative Action Plan, Montenegro has included a column entitled "Deadline". Please 
explain the significance of this date.  The reported date is a deadline for what action?   
Answer:  
The reported date is a deadline for the passage of rele vant law by the Parliament.  In case of by-laws, 
reported date is a deadline for adoption by the Government. 
IV. POLICIES AFFECTING TRADE IN GOODS 
1.  Import Regulation (a) Registration requirements for engaging in importing Question 17 
Regarding the requirement that individuals reg ister as entrepreneurs in  order to engage in 
importing, as described in response to Question 33 of WT/ACC/CGR/10, must an individual register as an entrepreneur in order to distribute domestically-produced goods?   
Answer:
 
Yes, an individual has to be registered as an entrep reneur in order to engage  in distribution of any 
goods, including domestically produced ones.  
Question 18 
Montenegro's justification for charging a higher fee for renewal of an expired licence than the 
charge for an unexpired licence, as explained in response to Question 35 of WT/ACC/CGR/10, appears to violate the GATT Article VIII requireme nt that fees reflect the approximate cost of 
services. Please describe how Mont enegro will bring this fee structure into compliance with 
GATT Article VIII.  
Answer:
 
The Republic of Montenegro will amend the Comp any Law (RM OG No. 6/02) with effect of 
abolishment of this provision.  The draft of the Law on Amendments and Modifications of the 
Company Law is currently being reviewed by relevant ministries, prior to approval by the 
Government.   
Question 19 
In response to Question 36 of WT/ACC/CGR/10, Montenegro states that foreign 
pharmaceutical companies are not permitted to im port into Montenegro without establishing a 
subsidiary in Montenegro.  Montenegro does not, however, provide a rationale for this 
requirement, as requested in the question.   
Please explain why foreign pharmaceutical manuf acturers must establish a subsidiary in 
Montenegro and are not permitted to im port directly into Montenegro.   WT/ACC/CGR/17 
Page 8  
 
 Answer:
 
The Law on Medicines (RM OG No. 80/04) prescribes very strict procedures for production and 
circulation of medicines in Montenegro.  In orde r to be engaged in produc tion and circulation of 
medicines one has to be legal entity with the corpor ate domicile within the territory of the Republic of 
Montenegro and registered in the Central Register  of the Commercial Court.  This provision of the 
Law on Medicines is based on best international prac tices in this field and is equally applied on both 
foreign and domestic suppliers.  
Question 20 
Such a prohibition restricts the right to trade imported pharmaceutical goods in violation of 
Article XI:1 of the GATT.  Please describe how Mo ntenegro will bring its laws into conformity 
with this GATT provision.   
Answer:  
Please see the answer above.  
Question 21 
Also in response to Question 36 of WT/ACC/CGR /10, Montenegro states that "every entity, 
domestic or foreign, has to be registered" in Montenegro.   
Can a foreign company register to import produc ts, other than pharmaceutical products, into 
Montenegro without establishing a physical presence in Montenegro? 
Answer:  
No.  
Question 22 
Are there other products, aside from pharmac euticals, that require a physical presence in 
Montenegro in order to be permitted to import?   
Answer:  
All entities engaged in import, domestic and foreign, have  to be registered. That means that there is no 
product that can be imported by the company that is not registered in Montenegro.  
Question 23 Please provide a detailed description of the procedures, including mandatory documents, 
required to import products into Montenegro.  Th is description will assist the Working Party to 
understand Montenegro's import regime.  Please be as detailed and specific as possible.  
Answer:
 
The Foreign Trade Law (RM OG, No. 28/04) prescrib es that all persons may conduct foreign trade 
activities in accordance with their le gal and/or commercial capacities, and in accordance with relevant 
legislation regulating commercial activities.  Acco rding to Article 11 of the Foreign Trade Law, any 
person may import or export goods subject to their status under relevant legislation.   WT/ACC/CGR/17 
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 In order to be engaged in foreign trade, a firm mu st be registered at the Central Register of the 
Commercial Court, must obtain the "statistical" number from the Montenegrin Bureau of Statistics, and register with the customs payers register in order to obtain a "customs number". The registration 
process is automatic, subject to submission of an application.  The Customs Administration imposes 
no additional requirements with regard to registra tion of firms intending to engage in import or 
export.  
(d) Other duties and charges, specify ing any changes for services rendered 
Question 24 We appreciate Montenegro's decision to transform its "special charges" on agriculture to 
specific duties, as noted in response to Question 48 of WT/ACC/CGR/10.  Will Montenegro 
commit to binding those specific duties? 
Answer:
 
The Republic of Montenegro has committed to bi nd specific duties in its initial Goods Offer.  
Question 25 
In response to Question 49 of WT/ACC/CGR/10, Mo ntenegro predicts that the amendments to 
its Customs Law will be enacted at the end of June.  Have these amendments been enacted?  
Please provide the Working Party with an update as to the status of these amendments.   
Answer:  
The Law on Amendments and Modifications of the Customs Law (OG RM No. 66/06) has been 
passed by the Parliament on 26 October 2006.  The text of the Customs Law with the amendments 
inserted can be obtained through document WT/ACC/CGR/17/Add.1. 
Question 26 WT/ACC/CGR/10, Question 49:  The legislative action plan states that Amendments to the 
Customs Law on ad valorem customs procedures are currently in inter-ministerial procedure, 
and enactment was planned by the end of June 2006.  Please provide an update. 
Answer:
 
The Law on Amendments and Modifications of the Customs Law (OG RM No. 66/06) has been 
passed by the Parliament on 26 October 2006.  The text of the Customs Law with the amendments 
inserted can be obtained through document WT/ACC/CGR/17/Add.1.  
(e) Quantitative import restrictions, including  prohibitions, quotas and licensing systems  
Question 27 In response to Question 50 of WT/ACC/CGR/10 Mont enegro explains that the list of prohibited 
imports is based on the old Law on Plant Protect ion, which law has been replaced by a new Law 
on Plant Protection.   
Does the new Law on Plant Protection annul th e list of prohibited imports provided in 
WT/ACC/CGR/3/Add.1?   WT/ACC/CGR/17 
Page 10  
 
 Answer:
 
The Law on Plant Health Protection (RM OG No. 28/ 06) does not annul the list of prohibited imports 
based on the Order on Ban of Import and Transit of Certain Plant Species and Determination of 
Quarantine Surveillance for Certai n Plant Species Imported for Growi ng Purposes, which is given in 
WT/ACC/CGR/3/Add.1.  Therefore, the Republic of Montenegro will apply this list until enactment 
of the by-law based on new Plant Health Protection Law.  Please note that new Plant Health 
Protection Law, passed in April 2006, provides for two years period for enactment of by-laws.   
Question 28 
Please provide the Working Party with a curren t comprehensive list of banned imports. 
Answer:  
The Republic of Montenegro has submitted list of banned imports in WT/ACC/CGR/3/Add.1, but we 
are sending this list again (please see the Annex at the end of this document). 
(f) Import licensing procedures 
Question 29 We welcome Montenegro's efforts to reform it s import licensing regime in accordance with 
WTO procedures.  We appreciate the recent submission of the "Decision on Control List for 
Export, Import and Transit of Goods."  However,  we remain concerned about the extensive list 
of goods subject to import licensing procedures.   
Please confirm that all of the items listed in this  document are subject to non-automatic import 
licensing procedures. 
Answer:
 
Yes, all licenses prescribed in the Decision on Cont rol List for Export, Import and Transit of Goods 
are non-automatic licenses.  
Question 30 
Please revise your Import  Licensing Questionnai re to reflect the revised Control List.  We 
suggest that Montenegro look to the United States' import licensing questionnaire response 
(G/LIC/N/3/USA/4) as a model. 
Answer:  
The revised Import Licensing Questionnaire will be  provided prior to the next Working Party 
Meeting.   
Question 31 
(Statement) In response to Question II.3. of th e Import Licensing Quest ionnaire, Montenegro 
explains that the purpose of its licensing regime is not to restrict the quantity or value of 
imports.   Rather, the purpose of its licensing  regime varies depending on the products and the 
licensing entity, but generally serve to protect human, animal or plant health or life, national security, the environment, and other reasons enum erated in Article XX of GATT.  We recognize  WT/ACC/CGR/17 
 Page 11 
 
 
 that Montenegro has a legitimate interest in protecting its citizens from unsafe products.   
However, WTO rules make ample provision for technical regulations for such protection, 
rather than the broad application of import licen sing procedures that burden trade.  Many of 
the justifications offered by Montenegro for it s licensing regime suggest that the concerns 
should be addressed through non-discriminato ry and transparently-applied TBT or SPS 
technical regulations.  We request that Mont enegro review its licensi ng regime and evaluate 
whether TBT or SPS technical regulations would not better advance their objective. 
Answer:  
The licensing regime has been analyzed in order to remove some of the licenses if possible.  However, 
it appears that no licenses currently applied can be replaced with a technical requirement or with SPS 
measure.  We are ready to review the import licensing  system in light of developments in the field of 
TBT and SPS measures.   
Question 32 
One of the requirements for obtaining a licence to import waste is a statement that "the 
imported waste of a particular quality does not ex ist in the domestic market circulation in the 
required quantities".  (WT/ACC/CGR/7, Annex 2, Exhibit II.2) From this requirement, it 
would appear that the purpose of the licence is to protect domestic production, not to protect 
the environment.   
Does this requirement mean that economic co nsiderations override environmental concerns 
with the importation of non-hazardous waste?    
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 is enacted on the basis of The Law on the Basis of Environment Protection (FRY OG No. 24/98), importer of waste has to submit,   
along with other documents, "statement of the process or that the imported waste of a particular quality 
does not exist in the domestic market circulation in the required quantities;".  In the meantime, the 
Republic of Montenegro in 2005 passed the Law on Waste Disposal (RM OG No. 80/05), which 
provisions include the latest international standards in this area.  This Law will enter into force on 
1 November 2008.  In this Law, there is no pr ovision making discrimination between domestically 
produced waste and imported waste. With this  Law entering into force, the Rulebook on 
Documentation to be submitted along with Request for Issuance of Import, Export and Transit of 
Wastes (FRY OG No. 69/99) will be abolished.  
Question 33 Is the placement on the market of domestically-p roduced non-hazardous waste regulated?  If so, 
how?   
Answer:
 
The Republic of Montenegro passed in 2005 the Law on Waste Disposal (RM OG No. 80/05) that has 
provisions regulating disposal of all kind of waste, in accordance with international standards in this 
area.  This Law will enter into force on 1 Novemb er 2008.  By than, The Re public of Montenegro will 
apply the Law on Maintenance of Hygiene, Collecting and Usage of Waste (RM OG No. 20/81) which doesn't have specific regulation on a dom estically produced waste.  Basel Convention 
provisions allow signatories to prohibit import of waste for disposal purposes and the new Law on WT/ACC/CGR/17 
Page 12  
 
 Waste Disposal also prescribes that waste can be imported only as raw material, but not for disposal 
purposes.   
Question 34 
The licensing restriction for importing non-hazard ous waste if it is produced in Montenegro 
appears to violate the prohibition against unjusti fied non-tariff restraints in Article XI of the 
GATT.  When and how will Montenegro bring this provision into compliance with the GATT?  
Answer:
 
Please see the answer above. 
Question 35 
There is a long list of species in Exhibit 6 of the Control List for which export or import trade 
requires a licence issued by the State authority for environmental protection.  We interpret the 
table to be a reproduction of the list of species that are included in the appendixes of CITES by 
decisions of the Conference of the Parties.   
Is this interpretation correct?   
Answer:  
Yes, the interpretation is correct, this is the list of species included in the appendixes of CITES. 
Question 36 
How are these licence requirements implemented (for example, how does Montenegro apply this 
species list to HS codes)?    
Answer:  
The Republic of Montenegro is in process of pr eparing new Customs Law with HS 2007 and all other 
regulations such as Decision on Control List for Export, Import and Transit of Goods (RM OG 
No. 19/06) will be harmonized with it. All tariff ite ms subject to import licensing procedures in the 
Decision on Control List will be provided in HS 2007,  which also includes plants and animals subject 
to import licensing procedures according to CITES.  In this moment, there is no overall tariff nomenclature of items on CITES list.  
Question 37 Are there any products derived from plant or an imal species not listed in the CITES appendices 
that are subject to the same or similar licence requirements?   
Answer:
 
No.  
Question 38 
If the licensing requirement is applied more broadly , what is Montenegro's justification for the 
licensing requirement and import restriction s on those species not covered by CITES?  WT/ACC/CGR/17 
 Page 13 
 
 
 Answer:  
Please see the answer above.  
Question 39 
In response to Question 62 of WT/ACC/CGR/10, Montenegro replied that Article 23 of the Law 
on Foreign Trade prescribes very precise timelin e for issuance of licenses for import, export and 
transit.  Is this timeline for both automatic and non-import licensing procedures?  Please 
include this information in the updated Import  Licensing Questionnaire, requested above.  
Answer:  
Please note that current Law on Foreign Trade doe s not differ between automatic and non-automatic 
licenses.  Therefore, there is no different timeline for issuance of licenses depending of a type of the 
licence. However, in line with comments received  during and after second Working Party Meeting, 
Montenegro has decided to amend its Foreign Tr ade Law and to add provisions on automatic and non-
automatic licenses.  All by-laws deriving from th e Foreign Trade Law, notably the Decision on 
Control List for Export, Import and Transit of G oods will be amended in order to reflect this 
amendment in the Foreign Trade Law.  
Question 40 In response to Question 63 of WT/ACC/CGR/10, Montenegro explains that a "licence" in 
Montenegrin usage is a non-automatic licence  in WTO terms, while an "approval" is an 
automatic licence.  Does this mean that all it ems listed in the "Decision on Control List" are 
subject to non-automatic licensing?  In rep lies to the Import Licensing Questionnaire 
(WT/ACC/CGR/7, Annex 2) Question II.3, Mont enegro states that licenses and approvals are 
not intended to restrict the quantity or value of im ports.  Therefore, we would like to reference 
Article 3.5(a) of the Agreement on Import Licensing Procedures: 
Members shall provide, upon the request of any Member have an interest in trade in the 
product concerned, all relevant information concerning: 
− the administration of the restrictions; 
− the import licenses granted over a recent period; 
− the distribution of such licenses among supplying countries; and 
− where, practicable, import statistics (i.e. value and/or volume) with respect to the 
products subject to import licensing. Developing country Members would not be 
expected to take additional administrati ve or financial burdens on this account. 
For each item list in the "Decision on Control Li st", please provide the information solicited in 
Article 3.5(a) (i-iv) of the Agreement on Import Licensing.  
Answer:
 
Percent of totally issued import licenses of all submitted requests for licenses is around 99 per cent. 
This is general data for all ministries which are involved in issuance of import licenses.  We will 
provide more detail statistics with number of import licenses issued by each ministry with tariff items, as well as the total value of goods imported subject  to licenses, and other required information in 
Questionnaire on Import Licenses which will be submitte d prior to next Working Party meeting.   WT/ACC/CGR/17 
Page 14  
 
 Question 41 
For the products listed in the "Decision on Control List."  What is the percentage of licenses granted in terms of value?   What is the percentage of licenses granted in terms of total licenses applied for? 
What is the total value of goods subject to licenses that are imported each year? 
Answer:
 
Please see answer above. 
Question 42 
In response to Question 65 of WT/ACC/CGR/10, Mo ntenegro suggests that it is reconsidering 
the validity periods for various import licenses.   Please provide the Working Party with an 
update on those discussions.   
Answer:  
The Law on Foreign Trade prescribes validity of a li cence up to one year with no restrictions of 
number of shipments during that period. The Mini stry for International Economic Relations and 
European Integration has issued  the instruction and interpretation of the Foreign Trade Law 
provisions related to validity of a licence to all mi nistries in charge for issuance of import licenses.  
All ministries have adjusted their respective li censing procedures to comply with those under the 
Foreign Trade Law.   
(g)  Other border measures 
Question 43 WT/ACC/CGR/10, Question 70:  Please provide an update on progress in reforming 
Montenegro's systems to be fully compliant with  TBT and SPS.  In particular, please provide an 
update on the draft Fertilizers Law and Pesticides Law, the draft Law on Plant Varieties, the 
draft Law on Food Safety, and ame ndments to the 2004 Veterinary Law. 
Answer:
 
Document WT/ACC/8 is under preparation and will be provided prior to the next Working Party 
Meeting.  
The draft Law on Protection of Plant Varieties has been sent to UPOV for review.  As soon as 
comments from UPOV are received, the draft will be placed in the appropriate procedure for 
enactment.  Draft Fertilizers Law has been prepared a nd it is being reviewed by relevant ministries.  It 
is expected that this Law will be passed by Marc h 2007.  Draft Pesticides Law is in initial stage of 
drafting.  It is expected that this Law will be passed by June 2007. 
Draft Law on Amendments and Modifications of the Veterinary Law has been submitted to the 
Government for approval, and the passage of this La w by the Parliament is expected by March 2007.   WT/ACC/CGR/17 
 Page 15 
 
 
 Draft Food Safety Law is being review ed by relevant ministries.  It is expected for this Law to be 
approved by the Government by the end of  2006 or early in 2007. 
(h) Customs valuation 
Question 44 With regard to the response to Question 73 of WT/ACC/CGR/10, we look forward to reviewing 
the amended Customs Law and Decree when they are enacted.   
Answer:
 
The Law on Amendments and Modifications of the Customs Law has been passed by the Parliament 
on 26 October 2006. 
Based on the amendments to the Customs Law, th e Decree for Implementation of the Customs Law 
will be amended accordingly by the end of December 2006. 
The text of the Customs Law with the amendmen ts inserted can be obtained through document 
WT/ACC/CGR/17/Add.1. 
Question 45 
We thank Montenegro for its response to questio ns concerning The Law on Customs.  However, 
we do not fully understand Montenegro's response to Question 9 of WT/ACC/CGR/16, 
pertaining to Article 74 of the Decree on Im plementation of the Customs Law.  We are 
concerned that Article 74 of the Montenegrin Decree on Implementation of the Customs Law 
might not permit the accurate implementation of the Interpretative Note to Paragraph 1(b) of 
Article 1 of the WTO Customs Valuation Agreement.  That Note provides that where the sale or price is subject to some condition or consideration for which a value cannot be determined, the 
transaction value is unacceptable for customs purpo ses.  It applies to all transactions regardless 
of whether the buyer and seller are related.  Ar ticle 74 would appear to limit its scope to 
business partners.  (A typical example of a condi tion or consideration for which a value cannot 
be determined is where the seller establishes the price of imported merchandise on the condition that the buyer will also buy other merchandise in specified quantities.)     
Please provide an example to illustrate how this Article is applied.  Answer:
 
We apologize for the error made due to referen ce on wrong paragraph of the Article 30 in the 
Customs Law. Namely, Article 74 of the Decree on Implementation of the Customs Law in paragraph 1 says:  "If, when determining custom s value in accordance with Article 30 paragraph 2 
item 2 of the Customs Law, the customs authority fi nds that the sale/purchase deal or the price of 
imported goods is subject to the conditions or liabilities whose value is impossible to determine for 
the imported goods, such value shall be deemed to be  indirect payment of the buyer to the seller and 
thus, a part of the actually paid or payable price."  Instead of the Article 30 paragraph 30 item 2, the 
Article 74 of the Decree on Implementation of the Customs Law, should refer to Article 30 paragraph 
1 of the Customs Law.  This mistake will be revised in the amendments of the Decree on 
Implementation of the Customs Law, which are already planed.  With this correction, the Article 74 of 
Decree on Implementation of the Customs Law will be fully harmonized with the WTO Customs Valuation Agreement. WT/ACC/CGR/17 
Page 16  
 
 Question 46 
WT/ACC/CGR/10, Question 73:  Please provide an update on amendments of the Customs Law 
and Decree of Implementation of the Customs Law.  
Answer:
 
The Law on Amendments and Modifications of the Customs Law (OG RM No. 66/06) has been 
passed by the Parliament on 26 October 2006. 
Based on the amendments to the Customs Law, th e Decree for Implementation of the Customs Law 
will be amended accordingly by the end of December 2006. 
(l) Rules of origin 
Question 47 
(Statement)  We welcome Montenegro's commitment in response to Question 74 of 
WT/ACC/CGR/10 to bring its Decree on Implem entation of the Customs Law into compliance 
with the WTO Agreement on Rules of Origin.  Montenegro's intention to amend the Decree 
should be reflected in Montenegro's Legislativ e Action Plan so that the Working Party can 
follow its progress. 
Answer:  
Please see document WT/ACC/CGR/12/Rev.1. 
3. Internal policies affecting foreign trade in goods 
(a) Industrial policy, including subsidy policies Question 48 Draft Notification Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement 
on Subsidies and Countervailing Measures  (WT/ACC/CGR/15):  We appreciate the 
opportunity for comment regarding  Montenegro's Draft Notification Pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures.  We submit the following request for addition al information with regard to the programs 
reported in the Draft Notification. 
Please provide information with regard to the six questions or requests enumerated below, as 
indicated for each of the following programs: 
Assistance Provided in 2004 and 2005 I.   Programme for reconstruction and development of economic activities
 
 Please provide responses to all the questions  and requests below with regard to this 
program. 
II.   Support for industry of electric machines and equipment   WT/ACC/CGR/17 
 Page 17 
 
 
  Please provide responses to all the questions  and requests below with regard to this 
program. 
Assistance Provided in 2005 II.   Support for "Zeljezara" - Montenegrin steel producer
 
 Please provide responses to items 1 and 2 below with regard to this program. 
Questions and Requests for Information 
Please identify the particular laws, decrees or  other statutory or regulatory mandates under 
which the program is authorized and/or administered. 
Answer:  
The Law on Budget provided the assets for these pr ograms for 2004 and 2005.  The Ministry of 
Finance has determined this amount for restructur ing of companies and support program for industry 
of electric machines and equipment.  
Government of Montenegro adopted compan y-restructuring program in June 2003.  
Support for "Zeljezara" occurred only in 2005.  Th e Government of Montenegro was obliged to 
compensate the price difference between the real price and agreed price for electricity, which 
"Zeljezara" purchases from "Elektroprivreda" (Company for electric energy production).  This price 
was defined in the purchase contract for "Zeljezara. "  When the investor gave up the purchase, the 
contract was terminated, and there is no Gove rnmental obligation relating to this issue. 
Question 49 
Is the assistance provided under the program contingent on export activity or the use of 
domestic goods? 
Answer:  
Subsidy for "Zeljezara" was disrupted in November  2005 because the purchase contract failed.  The 
production results of "Zeljezara" were much under production capacity in 2005.  
There is not available valuation how this  subsidy could affect export activity.   
Credit assistance under restructuring programs rela ted to numerous companies could not have 
significant influence on export improvement.  (Support was given for net assets, solving economic-
technology surplus of workers, and a small part for fixed assets).    
Credit assets for industry of electric machines and equipment "Obod" were determined for preserving 
the company property (reconstruction, reparation), sal aries for the workers engaged in reconstructions 
and property preservation.  The company has not been operational for a few years and the credit 
assistance could not affect competition neither in Montenegro nor abroad. 
Question 50 Please provide additional information as to the recipients of the assistance provided under the 
program, e.g., the industrial sector or types of enterprise. WT/ACC/CGR/17 
Page 18  
 
 Answer:
 
The restructuring program was directed to pro duction and service capacities from many activities.  
For details please see the answer above.  
Question 51 
Please explain the terms of the loans or credit s being provided under the programs, e.g., what 
interest rates (and other obligations) are app licable to these loans, how the terms are 
determined, and how the terms compare with the terms on commercial loans normally available 
during the reporting period. 
Answer:  
The Ministry of Economic Development makes proposal of credit assistance under the Program for 
Restructuring of Companies. This Ministry is responsible for realization of this Program.  
The Program determines terms of the credits as following:  
− duration of loan is 3 per cent with grace period of one year; and 
− interest rate is 2 per cent on annual level. 
Guaranty assets are determined by the Ministry of  Finance in the signing process of credit contract, 
mostly with fiduciary loan   
The Ministry of Finance is responsible for initiatin g payment procedure in case that term for payment 
expires. 
Question 52 
Is repayment of the loans or credits provided under the program contingent on the future 
performance of the company?  If so, please explain how. 
Answer:  
Credit from Program for restructuring of companies approval, not credit repayment, is conditioned on 
future performance of the company.  The future performances of comp anies are analyzed on working 
groups, which are responsible to determinate compan y's credit capability.  If working group estimates 
that company has positive business perspective and fina ncially is solvent for credit repayment, this 
company will be assigned credit. 
Question 53 
Please clarify whether the assistance provided under the program is intended to terminate when 
privatization of the company is completed, and wh en privatization is expected to be completed. 
Answer:  
Credit assistance under the restructuring program was obtained based on public tender.  The aim was 
to make better conditions for restructuring and to prepare company for privatization.  (The aim of 
privatization is that a new owner obtains necessa ry assets for reconstruction and modernization of 
capacities and competitive operations).  WT/ACC/CGR/17 
 Page 19 
 
 
 (b)  Technical regulations and standards 
Question 54 We welcome Montenegro's decision to abolis h the Law on Quality Control for Imported 
Agriculture and Food Products and its by-law s, as reported in response to Question 78 of 
WT/ACC/CGR/10.    However from Montenegro's  answer, it appears that quality controls still 
exist, albeit applicable to both imports and domestic products.   
Please describe those quality controls.  A re these quality controls mandatory?   
Answer:
 
Yes, these controls are mandatory. 
Question 55 
Are they technical requirements or voluntary standards? Answer:
 
All quality controls requirements are technical regula tions by their nature and they are prescribed in 
the form of regulations.  
Question 56 
How will these quality controls be applied to import s? at the border? at the distributor level?   
Answer:  
Quality requirements will not be applied at the bor der anymore.  Border quality control has been 
abolished by the enactment of the Law on Foreign Tr ade.  Quality control will be applied only at a 
distributor level.  
Question 57 
Please provide a list of products subject to quality controls. Answer:
 
All goods circulated at the market are subject to quality control based on di fferent rulebooks (around 
40 rulebooks for food and group of food items) and re gulations (quality control for industrial products 
is performed based on standardization regulations). 
Question 58 Please provide a translation of the relevant legi slation establishing the quality controls that 
remain in effect. 
Answer:
 
Montenegro will provide translations of certain quality control regulations prior to next Working 
Party meeting.  Please have in mind number of these regulations so we are not sure that we can WT/ACC/CGR/17 
Page 20  
 
 translate them all prior to next Working Party Me eting, but we will certainly submit list of these 
regulations, and translate them as soon as possible.   
Question 59 
WT/ACC/CGR/10, Question 79:  New WTO compliant TBT laws were passed by the State 
Union level in 2005.  These are: the Standardization Law (SM OG No. 44/05), the Accreditation 
Law (SM OG No. 44/05), the Law on Technical Requirements for Products and Conformity 
Assessment of Products with Prescribed Re quirements (SM OG No. 44/05) and the Law on 
Metrology (SM OG No. 44/05).   
Please provide an update on the enforcemen t of this legislation in Montenegro. 
Answer:
 
The independence of Montenegro as of 3 June 2006, means that Montenegro is now fully responsible 
for all the areas formerly within responsibilities of  the State Union of Serbia and Montenegro, 
including TBT.  By the Resolution of Parliament  adopted on 3 June, all former State Union laws, 
including those dealing with TBT, will continue to be effective and enforced in Montenegro as 
Montenegrin laws.  Therefore, the Republic of Monten egro continues to apply the four laws listed in 
above.  The Ministry for Economic Development of th e Republic of Montenegro is in charge of the 
implementation of these laws. The Ministry has established a working group to prepare all necessary by-laws for these four laws and to establish all necessary institutions that will be in charge of TBT.  It 
has been decided to establish the Institute for Standardization, Bureau for Metrology and the 
Accreditation Body.  The Register of Technical Regul ations will be maintained within the Ministry 
for Economic Development, while Institute for St andardization will maintain the Register of 
Standards.  The Republic of Montenegro will submit detailed report on TBT and action plan for 
remaining activities prior to next Working Party Meeting. 
(c) Sanitary and phytosanitary measures 
Question 60 (Statement)  We appreciated Montenegro's e fforts to answer Working Party questions on 
Montenegro's SPS regime.  Howeve r, many of Montenegro's answers noted pending legislation 
and little insight into Montenegro's underlying ob jectives and focus.  As noted in the opening 
remarks, we urge Montenegro to complete th e SPS Check-list (WT/ACC/8) sooner than noted 
in the questions and answers so we can bett er understand how Montenegro's SPS measures are 
compliant with the WTO SPS Agreement.  
Answer:
 
Montenegro will provide WT/ACC/8 checklist pr ior to the next Working Party Meeting. 
Question 61 
(Statement)   In addition to seeking clarificatio n on the status of implementing legislation, we 
continue to seek a copy of recently implemented legislation, such as the Law on Seeds and the 
Law on Seedlings. 
Answer:  
Translations of requested legislation can be obtained through document WT/ACC/CGR/17/Add.1.  WT/ACC/CGR/17 
 Page 21 
 
 
 Question 62 
In the Protocol on the Harmonization of Operations and Procedures in the Foreign Trade of 
Goods Liable to Mandatory Veterinary-Sanitar y and Phytosanitary control at the border of 
State Union of Serbia and Montenegro , described in response to Question 26 of 
WT/ACC/CGR/10, it appears that products subj ect to veterinary or phytosanitary inspection 
that are imported into Montenegro by an im porter with a head office in Serbia can enter 
Montenegro having passed SPS controls  in Serbia, and vice-versa.    
Now that Montenegro and Serbia will be inde pendent countries, how will such preferential 
treatment change?   
Answer:  
After the independence of Montenegro, all requirement s for import of products subject to veterinary 
or phytosanitary inspection from Serbia to Monteneg ro and vice versa are subject to regular rules 
applied on import of such products from any other country.  There is no preferential treatment for 
goods originating in Serbia when imported to Montenegro. 
Question 63 
Are there other ways in which Serbian exports to  Montenegro or investors have been given 
preferential treatment in Montenegro?   
Answer:  
Please see the answer above. 
Question 64 
What are they and how will they change now th at Serbia and Montenegro are two separate 
countries? 
Answer:  
Please see the answer above. 
Question 65 
Is Montenegro currently a member of the OIE, IPPC, and Codex Alimentarius?  Please 
describe, in detail, how Montenegro ensures th at its SPS measures conform to the standards, 
guidelines, or recommendations of these inte rnational standards-setting bodies.   
Answer:  
Montenegro is now in the process of establishing itself as an independent state.  It became 192nd 
member state of the UN (on 28 June 2006). Monteneg ro is currently in the process of regulating its 
status in OIE, IPPC and Codex Alimentarius. (M embership in the Food and Agriculture Organization-
FAO is expected on February 2007, on FAO a nnual meeting, when Montenegro will also 
automatically become the member of the Codex Alimentarius).  
Montenegro has a focal point and editor for IPPC in the Ministry for Agriculture, but it is not member 
formally yet.  WT/ACC/CGR/17 
Page 22  
 
 Montenegro is aware of the importance of member ship in these organizations and will take all the 
necessary steps to become member in the near future.  Working Party will be updated on any new 
developments. 
Question 66 
Does Montenegro maintain any SPS measures that  result in a higher level of protection than 
international standards?  If so , please describe these measures and show a scientific justification 
for such measures. 
Answer:
 
Montenegro does not maintain any SPS measure that  results in a higher level of protection than 
international standards. 
Question 67 Further to Question 69, we still do not have an  explanation from Montenegro about why it 
requires an import permit for biotech products .  When does Montenegro plan to conclude 
revisions to current biotech requirements and the by-laws? 
Answer:
 
The Law on the Basic Principles of Environment Protection (FRY OG No. 24/98, 24/99) that had a 
provision requiring an import permit for biotech prod ucts has been abolished in Montenegro. Hence, 
such requirement does not exist anymore.  
Question 68 
WT/ACC/CGR/10, Question 184:  Please provi de an update on the Food Safety Law. 
Answer:  
Draft Food Safety Law is being reviewed by relevant  ministries.  The draft law is expected to be 
approved by the Government by the end of 2006 or early in 2007. 
(g) Free economic zones 
Question 69 In response to Question 87 of WT/ACC/CGR/10, Montenegro states that the government is 
reviewing the Law on Free Zones.  Please give th e Working Party an update as to the status of 
this legislation.  We note that there is no mention of it in the Legislative Action Plan. 
Answer:
 
The Law on Free Zones will be amended prior to accession of the Republic of Montenegro to the 
WTO.  Please see document WT/ACC/CGR/12/Rev.1. 
Question 70 
WT/ACC/CGR/10, Question 87:  Will Montenegro  review its Law on Free Zones in order to 
ensure that it is fully compatible with WTO rules?  WT/ACC/CGR/17 
 Page 23 
 
 
 Answer:  
The Law on Free Zones will be amended prior to accession of the Republic of Montenegro to the 
WTO.  Please see document WT/ACC/CGR/12/Rev.1.  
4. Policies affecting foreign trade in agricultural products 
(a) Imports 
Question 71 
In response to Question 2 of WT/ACC/CGR/16, Mont enegro refers to Article 1 of The Decree 
for Implementation of Customs Law (RM OG No. 15/03).  The version of this Decree provided 
to the Secretariat starts at Part 3, Articl e 13.  Please provide the Working Party with a 
translation of the first two parts of this Decree.   
Answer:  
Montenegro will provide requested translation of the legislation prior to next Working Party Meeting.  
Question 72 
In response to Question 2 of WT/ACC/CGR/16, Mo ntenegro confirms that it currently does not 
apply any "protective measures of agricultural policy."  Will Montenegro commit that any 
future application of such measures will be done  in conformity with its WTO obligations?   
Answer:  
Montenegro confirms that there are no currently  applied protective measures of agricultural policy 
and commit that any future application of such measures will be done in conformity with its WTO 
obligations.  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
1. General 
Question 73 WT/ACC/CGR/10, Question 202:  Please provide an update on relevant articles of the Penal 
Code, and the Law on Optical Discs. 
Answer:
 
The Law on Amendments and Modifications of the Criminal Code (OG RM No. 47/06) has been 
passed by the Parliament in July 2006.  
The draft Law on Optical Discs has been approved by  the Government and has been submitted to the 
Parliament for approval. WT/ACC/CGR/17 
Page 24  
 
 (c) Membership of international intellectua l property conventions and of regional or 
bilateral agreements 
Question 74 In response to Question 100 of WT/ACC/CGR/10, Montenegro stated that it does not plan to 
enact legislation to implement the Geneva Phonograms and Brussels Satellite Convention, 
which are directly enforceable in Montenegro's law.   
Does Montenegro plan to promulgate regulations, or other instruments, which may be used by 
the judiciary in applying these treaties? 
Answer:
 
Both Geneva Phonograms and Brussel s Satellite Conventions are binding  on Montenegro.  As ratified 
international agreements, both have been translated  and published in the Official Gazette and thus 
became an integral part of Montenegrin legal syst em.  In addition, essential elements of both Geneva 
Phonograms and Brussels Satellite Conventions are included in the Law on Copyright and Related 
Rights.  The judiciary applies all the laws directly , without the need for any additional instruments. 
Therefore, there is no need to promulgate regulations , or other instruments, which may be used by the 
judiciary in applying these treaties, and Montenegro does not plan to enact any. 
Question 75 
In WT/ACC/CGR/14, Montenegro notes that th e requirements of Berne Convention Article 18 
are implemented through Articles 193 and 196 of Montenegro's copyright law.   
Under these provisions, are producers of phonogram s fully assimilated to the rights of authors 
and copyright owners? 
Answer:  
Yes. Under Article 1 of the Copyright Law, the Law regulates, inter alia , the rights of phonograms 
producers.  Please see Articles 121-125 of the Copyright Law for details.  
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 76 We thank Montenegro for providing a copy of th e new draft geographical indications (GI) law. 
According to the response to Question 102 of WT/ACC/CGR/10, Montenegro has indicated that 
the new draft GI law has been approved by th e Council of Ministers of Serbia and Montenegro 
but is pending passage by the Union Parliament.   
What is the time frame for the new law to be in force? Answer:
 
The Law on Indications of Geographical Origin  (OG SM No. 20/06) has been passed by the 
Parliament (of the former State Union of Se rbia and Montenegro) on 11 May 2006 and became  WT/ACC/CGR/17 
 Page 25 
 
 
 effective on 20 May 2006.  In accordance with th e Declaration of Independence, Montenegro 
continues to apply and enforce former Union's IP Laws, including the Law on Indications of Geographical Origin.  A translation of th is Law can be obtained through document 
WT/ACC/CGR/17/Add.1.  
Question 77 
Under this new law, we understand that Monten egro will be creating a separate and distinct 
system apart from its trademark system for th e protection of geographical indications. The 
following questions have arisen after a review of the new draft law: 
According to Articles 12 and 14 of the new dr aft law, foreign GI owners can only receive 
protection in Montenegro if an international ag reement is in place between the foreign country 
and Montenegro.  This requirement of a bilatera l agreement, or reciprocity, would appear to be 
contrary to the "national treatment" and "most favoured nation" principles in Articles 3 and 4 
of the TRIPS Agreement.   
Moreover, the requirement that foreign applic ants submit evidence or documents showing 
protection in the country of origin proving the app licant's right to the GI could be used to deny 
protection to applicants whose countries have a different system of protection for GIs than 
Montenegro, such as unfair competition or trademark systems. 
Would Montenegro accept other evidence of protection in the foreign country such as 
certification mark registrations?  
Answer:
 
This appears to be a misunderstanding. 
Article 12 of the Draft, which is identical to Ar ticle 12 of the Law on Indications of Geographical 
Origin, regulates the rights and procedure of do mestic authorized user of the indication of 
geographical origin or the applicant for the authorized  user of the indication of geographical origin to 
file an application for an international regist ration of the indication of geographical origin. 
Paragraph 1 simply states that the application shou ld be filed in accordance with an international 
agreement binding on (Serbia and) Montenegro th at regulates such international registration. 
Montenegro believes that this provision does not in  any way contravene the "national treatment" and 
"most favoured nation" principles in Artic les 3 and 4 of the TRIPS Agreement. 
Under Article 14, paragraph 2, subpa ragraph 3 foreign natural or lega l persons or foreign associations, 
may file an application to register an appellati on of origin or a geographical indication" if an 
appellation of origin or a geographical indication were  registered in the country of origin or when it 
stems from the international agreements."  This provision does not exclude or favour any particular 
system of registration. 
Question 78 
It appears that Montenegro does not protect th e rights of trademark owners as required by 
Article 16.1 of the TRIPS Agreement.  Article 44 of the draft GI law does not provide that the 
principles of priority and exclusivity a re preserved for trademarks and geographical 
indications.  The TRIPS Agreement Article 16.1 requires that owners of trademark rights established prior to a later applied for GI should be able to assert the exclusivity of the prior 
trademark rights.  Article 44 appears to allow for a GI to be registered if it conflicts with a prior 
trademark, even where this conflict would result in a likelihood of confusion.  WT/ACC/CGR/17 
Page 26  
 
 Please confirm that Montenegro will preserve the rights of trademark owners, consistent with 
Articles 16(1) and 24(5) of the TRIPS Agreemen t by protecting trademarks from confusingly 
similar and later in time GIs. 
Answer:
 
Article 44 of the Law on Indications of Geographi cal Origin regulates relation between registered 
geographical indication and previously registered trademark, or trademark application which has 
priority over registered geographical indication.  It does not, however, provide for exclusivity.  Please 
note that this article relates to the registered geogr aphical indications only, and not to the registered 
appellations of origin.  
(e) Patents  
Question 79 
Please explain in detail how Montenegro's patent law complies with each of the safeguards listed 
in TRIPS Art. 31 regarding compulsory licenses? 
Answer:  
The compulsory licence is regulated in Articles 63- 70 of the Patent Law (OG SM No. 35/04).  Please 
see the translation of the Patent Law for details.  Table bellow provides comparison of provisions of 
TRIPS Article 31 and the relevant provisions of the Patent Law. 
TRIPS Article 31 The Patent Law 
(a) authorization of such use shall be 
considered on its individual merits Article 63, paragraph 1: 
If an owner of a patent refuses to licence the right of 
commercial use of a protected invention to other persons 
or sets unreasonable conditions for such licensing, the authority competent in the field in which the invention 
shall be employed may, after considering the merits of 
each individual case, grant a compulsory licence upon application of the interested person. 
(b) such use may only be permitted if, prior to 
such use, the proposed user has made 
efforts to obtain authorization from the right holder on reasonable commercial 
terms and conditions and that such efforts 
have not been successful within a reasonable period of time.   Article 63, paragraph 2: 
The interested person shall be required to prove that he 
has made efforts, before filin g the application referred to 
in paragraph 1 of this Article, to obtain authorisation from 
the right holder to use the protected invention on 
reasonable commercial terms and conditions and that he has not received such authoris ation within a reasonable 
period of time. 
(c) the scope and duration of such use shall be 
limited to the purpose for which it was 
authorized, and in the case of semi-
conductor technology shall only be for public non-commercial use or to remedy a 
practice determined after judicial or 
administrative process to be anti-competitive Article 65, paragraph 1: 
The scope and duration of a compulsory licence shall be 
limited to the purpose for which it has been granted.   
 
(d) such use shall be non-exclusive Article 65, paragraph 2: 
A compulsory licence shall not be exclusive.   
(e) such use shall be non-assignable, except 
with that part of the enterprise or goodwill which enjoys such use Article 65, paragraph 3: 
A compulsory licence may be assigned only with the 
enterprise or part of the enterprise in which it is used.  WT/ACC/CGR/17 
 Page 27 
 
 
 TRIPS Article 31 The Patent Law 
(f) any such use shall be authorized 
predominantly for the supply of the domestic market of the Member 
authorizing such use Article 65, paragraph 4: 
A compulsory licence shall pr edominantly be granted for 
the supply of the domestic market. 
(g) authorization for such use shall be liable, 
subject to adequate protection of the 
legitimate interests of the persons so 
authorized, to be terminated if and when the circumstances which led to it cease to 
exist and are unlikel y to recur.  The 
competent authority shall have the authority to review, upon motivated 
request, the continued existence of these 
circumstances Article 65, paragraph 5: 
A compulsory licence may be terminated if and when 
circumstances that have led to its grant cease to exist and 
are unlikely to recur.  On reasoned requ est, the competent 
authority shall re-examine the further existence of such 
circumstances 
(h) the right holder shall be paid adequate 
remuneration in the circumstances of each 
case, taking into account the economic 
value of the authorization Article 64 
The holder of a compulsory licence shall be required to 
pay the patent owner a mutually agreed remuneration. In 
the absence of an agreement on the amount and method of payment of such remuneration, the competent court shall 
decide, taking into account th e merits of each individual 
case and the economic value of  the compulsory licence.  
(i) the legal validity of any decision relating 
to the authorization of such use shall be 
subject to judicial review or other 
independent review by a distinct higher authority in that Member Article 70 
Administrative acts effected by the competent authority 
pursuant to the provisions of Articles 63, 66 and 68, shall 
be final. An administrative dispute against such acts may be instituted before the competent court. 
Note:  The competent Court is the Administrative Court 
of Montenegro   
(j) any decision relating to the remuneration 
provided in respect of such use shall be 
subject to judicial review or other independent review by a distinct higher 
authority in that Member Article 70 
Administrative acts effected by the competent authority 
pursuant to the provisions of Articles 63, 66 and 68, shall be final. An administrative dispute against such acts may 
be instituted before the competent court. 
Note:  The competent Court is the Administrative Court of Montenegro   
(k) Members are not obliged to apply the 
conditions set forth in subparagraphs (b) 
and (f) where such us e is permitted to 
remedy a practice determined after judicial 
or administrative process to be anti-
competitive.  The need to correct anti-competitive practices may be taken into 
account in determining the amount of 
remuneration in such cases.  Competent authorities shall have the authority to 
refuse termination of authorization if and 
when the conditions which led to such 
authorization are likely to recur Article 66, paragraph 5: 
In order to rectify an an ti-competitive practice, the 
competent authority may refuse the termination of a compulsory licence in the public interest, if and when 
circumstances which have led to its grant are likely to 
recur.   Article 67, paragraph 1: 
The holder of a compulsory licence in the public interest 
shall be required to pay the patent owner remuneration pursuant to Article 64.  However, in the event that such 
licence is granted in order to rectify anti-competitive 
practice, the competent authority may, when determining 
the total amount of remunera tion, take into account the 
need to remedy such practice. Article 66, paragraph 6: 
In order to rectify an an ti-competitive practice, the 
competent authority may refuse the termination of a compulsory licence in the public interest, if and when 
circumstances which have led to its grant are likely to 
recur.   WT/ACC/CGR/17 
Page 28  
 
 TRIPS Article 31 The Patent Law 
(l) where such use is authorized to permit the 
exploitation of a patent ("the second patent") which cannot be exploited without 
infringing another patent ("the first 
patent"), the following additional 
conditions shall apply: 
 (i) the invention claimed in the second 
patent shall involve an important 
technical advance of considerable 
economic significance in relation to the invention claimed in the first 
patent; 
 (ii) the owner of the first patent shall be 
entitled to a cross-licence on 
reasonable terms to use the invention 
claimed in the second patent; and 
 (iii) the use authorized in respect of the 
first patent shall be non-assignable 
except with the assignment of the second patent. 
 Article 63 
If an owner of a patent refuses to licence the right of commercial use of a protected invention to other persons 
or sets unreasonable conditions for such licensing, the 
authority competent in the field in which the invention 
shall be employed may, after considering the merits of 
each individual case, grant a compulsory licence upon application of the interested person:   
if the patent owner himself or a person authorised  by him 
does not use the protected invention or uses it insufficiently in Serbia and Montenegro; 
if the commercial use of an invention that has been 
subsequently protected in the name of another person is not possible without the use of  the protected invention in 
whole or in part.   
The interested person shall be required to prove that he has made efforts, before filin g the application referred to 
in paragraph 1 of this Article, to obtain authorisation from 
the right holder to use the protected invention on reasonable commercial terms and conditions and that he 
has not received such authoris ation within a reasonable 
period of time.  The interested person, referred to in paragraph 1, item (1) 
of this Article, may only be a person who proves that he 
has the appropriate technol ogical capacity and production 
facilities for the commercial use of the protected 
invention. 
  
The interested person referred to in paragraph 1, item (2) 
of this Article may only be the owner of the second invention, provided that:   
the second invention involves a technical advancement of 
special economic significance in relation to the invention protected by the first patent; and that 
the owner of the first patent is entitled, on reasonable 
terms, to a cross-licence to  use the second invention.   
Authorisation for the use of the invention protected by 
first patent shall be non-transferable except with the 
assignment of the second patent.  
 
(f) Plant variety protection 
Question 80 In response to Question 25 of WT/ACC/CGR/10, Montenegro mentions the new Law on Plant 
Protection and by-laws that will be issued to impl ement the law.  Please provide a translation of 
the law and the by-laws to the Working Party.   
Answer:
 
The Law referred to in the response to Question 25 of WT/ACC/CGR/10 the Law on Plant Protection, 
which is actually a SPS law that regulates the protecti on of plant health and related issues rather than 
protection of new plant varieties.  For details on the Law on Protection of Plant Varieties, please see 
the answer bellow.    WT/ACC/CGR/17 
 Page 29 
 
 
 Question 81 
We understand that Montenegro is working to  implement a UPOV-consistent regime for 
protection of plant varieties, with a deadline of September 2006.  Could Montenegro please 
provide a status update of these activities? 
Answer:  
The draft Law on Plant Varieties Protection has been  prepared and submitted to UPOV for the review. 
However, the review from UPOV has not received ye t and the plan to enact the Law had to be 
delayed.  A translation of the draft Law can be obtained through document WT/ACC/CGR/17/Add.1. 
(h) Requirements on undisclosed information,  including trade secrets and test data 
Question 82 
In its response to Question 30 in WT/ACC/CGR/16, Mo ntenegro indicates it is working to adopt 
new legislation making the protection of undi sclosed information more transparent.   
Could Montenegro please provide a status update of these activities?   Could Montenegro please also explain whether or how its cu rrent legislation complies with 
TRIPS Article 39.3 regarding protection of pharm aceutical and agricultural chemical test and 
other data against unfair commercial use?  
Specifically, does it protect the undisclosed test or other data against reliance by unauthorized 
third parties, and does it provide for a period of exclusivity for the data?   
Will the new legislation concerning undiscl osed information address these issues? 
Answer:
 
Activities related to the protection of undisclosed info rmation are still in the early stage, hence there is 
no draft that could be presented to the Working Party yet. 
The Law on Medicines (RM Official Gazette No. 80/04) does not contain any provision that would 
comply with TRIPS Article 39.3 regarding protection of pharmaceutical chemical test and other data 
against unfair commercial use.  Specifically, there is  no provision that protects the undisclosed test or 
other data against reliance by unauthorized third par ties, nor does it provide for a period of exclusivity 
for the data. 
The former federal Law on Plant Protection (FRY O fficial Gazette No. 24/98, 26/98), which is still 
partly enforced in Montenegro, has a provision in  its Article 54, paragraph 6, under which the 
authority responsible to examine physical and ch emical properties and biological efficiency of 
pesticides and fertilizers, must keep all the data indicated by the applicant as a business secret  for a 
period of ten years.  
Montenegro is aware that its legislation falls s hort of meeting TRIPS requirements.  However, the 
new legislation concerning undisclosed information will address all these issues.    WT/ACC/CGR/17 
Page 30  
 
 4. Enforcement  
Question 83 Statement:  We thank Montenegro for the detailed citations to the existing and pending national 
legislation provided in WT/ACC/CGR/14 that im plements TRIPS enforcement obligations.  We 
look forward to reviewing amendments to th e customs law, penal code, and optical disc 
legislation upon passage before Parliament.  
Answer:
 
The following legislation has become effective and will be provided to the Working Party prior to the 
next meeting: 
− Regulation on Actions of the Customs Authority Applicable to Goods that Infringe 
Intellectual Property Rights (RM Official Gazette  No. 25/05), effective as of  1 July 2005 – 
enforcing TRIPS Border measures; 
− Amendments to the Criminal Code (RM Official Gazette No. 47/06), effective as of 
3 August 2006 – providing penal protection of IP rights; and 
− In addition, the draft Optical Discs Law has b een approved by the Government and is pending 
passage by the Parliament.  WT/ACC/CGR/17 
 Page 31 
 
 
 ANNEX 
The List of Prohibited Imports based on the Orde r on Ban of Import and Transit of Certain Plant 
Species and Determination of Quarantine Surv eillance for Certain Plant Species Imported for 
Growing Purposes and List of Plants  Subject to Quarantine Surveillance  
 I.  PROHIBITED IMPORTS AND TRANSIT FOR PHYTOSANITARY REASONS 
 
Item Type of plant Object of prohibition 
1 Plants from the genus Abies, Picea, 
Pinus Pseudotsuga, Tsuga and Larix 
originating from France, Spain and non-
European countries The ban pertains to import of the plants and parts for 
propagation of these plants, except seeds and samples of 
graft-twigs and pollen originating from non-
contaminated areas, and imported by scientific institutions dealing in selection, introduction of new 
species, varieties, lines and hybrids or plant protection. 
2. Plants from the genus Castanea and 
Quercus from all countries and genus 
Ulmus originating from the United States 
of America The ban pertains to import of the plants as well as parts 
for propagation of these pl ants, except the seed of 
Quercus and Ulmus and samples of the seed Castanea 
originating in non-contaminated areas and imported by scientific institutions dealing in selection, introduction 
of new species, varieties, lines and hybrids or plant 
protection. 
3.  Plants form the genus Juniperus 
originating from the countries of Asia 
and North America The ban pertains to the import and transit of plants as 
well as parts for propagation of such plants, except the 
seeds. 
4. Plants from the family Rosaceae (genus 
Chaenomeles, Cydonia, Crataegus, Malus, Photinia, Prunus, Pyrus and 
Rosa) originating from the countries of 
Asia and North America The ban pertains to import and transit of plants as well 
as parts for propagation of such plants, except the seeds and plants in the stage of dormancy without leaves and 
fruit (import is permitted in the stage of dormancy and 
quarantine surveillance is applied). 
5. Plants from the genus Populus 
originating from France, Spain and non-
European countries and the genus 
Platanus originating from the USA, France, Italy, Spain, Armenia and other 
countries where the quarantine harmful 
organism Ceratocystis fimbirata f. sp. 
platani had been found. The ban pertains to import of plants as well as 
propagation parts of the respective plants, except the 
seeds and import of plant samples originating from non-
contaminated areas, imported by scientific institutions dealing in introduction of new species, varieties, lines 
and hybrids. 
 
6. Potato (Solanum tuberosum and 
Solanum spp.) originating from Mexico and countries of Central and South 
America The ban pertains to import of potato for seed and 
consumption, including the wild or semi-cultivated clones, in particular tuber, plants with roots and parts of 
plants, except the real seed and cultures of tissues and 
samples originating form non-contaminated areas, and imported by scientific institutions dealing in 
introduction of new species, varieties, lines and hybrids. 
7. Coniferous wood from non-European 
countries with non-peeled bark The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in percentage of dry matter (designation K.D. "Kilndried" 
etc.) 
8. Oak wood genus Quercus originating 
from the USA, Russian Federation and Romania and chestnut wood genus 
Castenea originating from all countries, 
with non-peeled bark The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture expressed in percentage of dry matter.  WT/ACC/CGR/17 
Page 32  
 
 Item Type of plant Object of prohibition 
9. Wood from the genus Populus, Ulmus, 
Zelkova, Fraxinus and Tillia americana originating from non-European countries 
with non-peeled bark. The ban pertains to the import of wood except for the 
wood dried to less than 20% of moisture as expressed in percentage of dry matter. 
10. Logs and timber of the wood genus 
Platanus from the USA, France, Italy, 
Spain, Armenia and other countries 
where Ceratosystis fimbriata f. sp. Platani was determined. The ban pertains to import of logs and timber. 
11. Wood bark under ordinal numbers 7, 8, 9 
and 10. The ban pertains to import of wood bark if in the 
country of origin no disinsection and disinfection by 
fumigation or fermentation applying the prescribed method was applied. 
12. Corn stalks and sorghum straw if 
originating from the countries of Africa The ban pertains to import and transit of corn stalks and 
sorghum straw. 
13. Soil, compost and substratum mixed with 
soil or compost, with plants or without plants, originating from the non-
European countries The ban pertains to import of soil, compost and mixed 
substratum for which no disinfection and disinsection has been performed. 
14. Plants from the genus Fragaria 
originating from non-European countries. The ban pertains to the import of plants, except for seeds 
and fruits. 
 
  WT/ACC/CGR/17 
 Page 33 
 
 
 II. PLANTS SUBJECT TO QUARANTINE SURVEILLANCE 
 
Quarantine surveillance is prescr ibed for plants imported for propagation purposes as follows: 
 1. Graft-twigs and pollen of the genus Abies, Picea, Pinus, Pseudotsuga, Tsuga and Larix and 
samples of the plant seed of genus Castanea a nd Quercus if the import is restricted under 
ordinal No. 1 and 2 of Exhibit A12.3; 
2. The genus Abies, Picea, Pinus, Pseudotsuga, Ts uga and Larix originating from non-European 
countries; 
3. The genus Populus and Platanus if the import is  restricted under the ordinal No. 5 of Exhibit 
A12.3; and 
4. Seed potato samples (Solanum spp.) if the import is restricted under the ordinal No. 6 of 
Exhibit A12.3. 
 Quarantine surveillance of plants refe rred to in items 2) and 3) hereof  pertains to the entire live plant 
and their parts for propagation, except the seeds. 
  
__________