Gabon WT/TPR/S/86
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III. TRADE POLICY – ANALYSIS BY MEASURE
(1) MEASURES DIRECTLY AFFECTING IMPORTS
(i) Registration
1. Natural and legal persons engaging in business as traders, industrialists or artisans in Gabon
are subject to the provisions of Ordinance No. 10/89.  A person wishing to engage in such activities
must obtain the approval of the Minister for Trade, be registered in the register of trade, make adeclaration of direct and indirect taxes and hold a licence.  The approval of the Minister for Trade
gives entitlement to a trading card, valid for two y ears, which is issued on payment of a stamp duty,
the amount of which is set by decree.  When the Minister's approval has been obtained, the trader is
required to register with the trade registry.
2. The regulations distinguish between import and export activities and those of a purely
domestic nature on the basis of two criteria.  Firstly, the person applying for the approval of the
Minister for Trade for import activities must undertake to "make wholesale supplies to traders holding
a seventh or eighth class licence in at least one of their business premises".  The Gabonese authorities
explain that the intention behind this provision is to allow a distinction in the commercial chain
between wholesale and retail importers in order to prevent a monopoly situation throughout the chain.Secondly, importing and exporting activities are subject to the foreign trade regulations, established
by Decree No. 766/PR/MICOIN of 1 June 1983, a nd its subsequent amendments.  Article 18 of
Ordinance No. 10/89 provides for a fixed rate charge on import permits, which continue to be
required for certain food products and live animals.
(ii) Customs procedures
(a) Overview
3. Gabon applies the Customs Code of the Central African Economic and Customs Union
(CACEU/UDEAC), included as part of the arrangements of the Central African Economic Union
(UEAC), one of the two arms of the Central Af rican Economic and Monetary Community (CAEMC)
(Chapter II, 3(ii)).  The Code was drawn up by  CACEU Board and adopted in 1965 by the CACEU
Council of Ministers by Act No. 8/65-UDEAC-37.
1  The Customs Code is administered by the
Customs authorities of the member States of CAEMC.
4. Certain subsequent and important changes to the Customs Code should be noted.  Firstly, the
fiscal and customs reform of 1993 resulted, notably, in a common external tariff, a General
Preferential Tariff (GPT) and an agreement on turnover tax and excise duties.  This reform also led to
the abolition of a large number of exemptions from tax and duties, and the elimination of quantitative
restrictions in the member countries.  The member countries of CACEU nevertheless had the right toapply a temporary surcharge on a list of goods for a maximum period of six years ending
30 June 2000.  Gabon had, however, not yet finally abolished this temporary surcharge in April 2001.
Secondly, the provisions of the CACEU Customs Code on customs valuation were amended to give
effect to the relevant WTO Agreement and notified to the WTO by the Gabonese authorities
(G/VAL/N/1/GAB/1).
5. The Gabonese authorities are faced with a number of challenges in the customs area.  Firstly,
they have encountered considerable delays in customs clearance procedures.  The time between the
arrival of goods and registering of the manifest varies from zero to six days, and the time between
                                                     
1 The WTO Secretariat has a copy of this Code and its implementing regulations.WT/TPR/S/86 Trade Policy Review
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registering of the manifest and the declaration ranges from zero to 33 days.2  The authorities are
seeking to reduce these times.
6. Secondly, the duty and tax exemption and reduction arrangements, mainly linked to
investment and mineral and oil exploration, are an important factor in the administration of the
regime, since the loss of revenue is estimated at a quarter of customs receipts.  Apart from the
considerable loss of fiscal revenue, and the highly dubious economic value of these investmentincentives, a regime which offers companies and in dividuals the possibility of negotiating preferential
arrangements in respect of taxes, duties and other levies leads to governance difficulties, which in
itself is a disincentive to invest in Gabon (Chapter II , 2(vi).  Also worth mentioning is the delay by the
Gabonese authorities in abolishing the temporary surcharge, which is due to the opposition of local
producers of like or directly competing products.
7. The Gabonese authorities are also faced with the problem of tax avoidance and customs fraud.
The fraud consists mainly of under-valuation for customs of imported and exported goods (notably
wood), which results in a reduction in customs revenues, to the detriment of public finances.  There is
a powerful incentive in the case of some products because of the high level of customs duties and
levies.  A related phenomenon is the lack of trust between economic operators and customs officials,whose image has sometimes been tarnished by "conduct inconsistent with their office, and damaging
to their efficiency and their reputation".
3
8. Faced with these challenges, Gabon has implemented a number of programmes.  Firstly,
Gabon hopes to increase the use of computers by integrating its central customs offices into the
Sindara system.  This system was inaugurated in 1999.  Its use is subject to a charge based on CPU
time.4  Secondly, customs staff are covered by the new human resources management arrangements in
the public sector (Chapter II, 2(vi)).  Also worth noting are the training needs resulting from theimplementation by Gabon from 1 January 2000 of the WTO Agreement on Customs Valuation.
(b) Customs clearance procedures
9. The carrier of imported and exported goods is required to go to the nearest customs office on
arrival and exit.  Any goods to or from a foreign destination are subject to customs controls designed
to ensure strict compliance with the procedures and legal requirements for imports and exports.  Tothis end, inspection of documents is mandatory for all despatches, and physical checks of all or part of
the goods declared may also be made.  Although no payment is necessary for a customs inspection,
there are other charges linked to imports not related to the Customs Administration such as lighterage,
storage and delivery costs.
10. For goods imported by sea, the captain submits the ship's log for stamping by the customs
officials and deposits the cargo manifest at the customs office for registration.  The latter document
must mention, among other things, the nature of the goods and place of loading.  In the case of arrival
by land, the carrier must travel by a legal route to one of the customs offices established by decree to
deposit the manifest for registration purposes.
11. According to Title V of the Customs Code, a "detailed declaration", accompanied by the
mandatory documents, must be submitted for all imported goods, either by the owner of the goods or
a person accredited as a customs agent (commissionnaire en douanes).  In Gabon, the Finance Law
                                                     
2 Ministry of the Economy, Finance, Budget and Privatization (1999), page 18.
3 Ministry of the Economy, Finance, Budget and Privatization (1999), foreword by the Director-
General of Customs and Indirect Taxes.
4 Decree No. 917/PR/MFEBP-CP of 24 June 1997.Gabon WT/TPR/S/86
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2001 requires the owner of the goods to conduct all customs transactions through a customs agent.
Accreditation as a customs agent is obtained from the Gabon customs office.
12. The detailed declaration must contain the usual information used to establish the customs
value, such as identification of the goods in the customs tariff, origin of the goods (see below),
conditions of competition governing the transaction, and the customs regime requested.  The regime is
either definitive (import or export), or provisional (placement in customs warehouse, productionunder customs control, drawback or temporary export).  Goods carried under customs seal or placed
in a customs warehouse must be covered by a bond.  It should be noted that Gabon has passed a law
to create a free zone on Mandji Island, the boundaries of which will be subject to customs controls.
Its entry into force is awaiting the adoption of the implementing regulations.
13. The CACEU Board has established model declarations that can be used (Table AIII.1).  The
most commonly employed are customs clearance de clarations for consumption on direct import or
release from the warehouse, and simple exports.
14. The customs declaration must be accompanied by the following documents:
- Invoices;
- licences and all other certificates and documents required under the regulations
concerning prohibitions and foreign trade and exchange controls;
- all the documents required by the customs administration in application of customs
legislation and regulations (certificate of origin, certificate of movement or release,
temporary entry permit, exit visa, etc.);
- all the documents required by the customs services for the application of special laws
and regimes (hygiene, public health, preservation of animals and plants against
diseases, quality control or packaging);
- all the documents required for the application, on import or export, of regulations and
decisions related to the ACP-EU Partnership Agreement;  and
- all the documents authorizing the application of a preferential tariff regime
(administrative decisions, tenders for supplies or works, etc.).
15. Detailed declarations must be deposited at the customs office for registration.  Customs only
register declarations which are admissible.  Declarations which are irregular in form or not
accompanied by the mandatory supporting documents are rejected.
16. The detailed declaration and verification of the goods establish the customs valuation (see
below), which is the basis for the amount of duties and taxes chargeable on the import of the goods.
The Customs collect customs duties at the time of importation (including the surcharge, whereapplicable), excise duties, where applicable, the tax on controls of measurement instruments, where
applicable, and VAT.  The turnover tax on imports was abolished (replaced in 1995 by VAT), as was
the special contribution to the Gabonese Loaders Council (in 1992) and the contribution to the
Foreign Trade Centre (in 1992).
5  The duties and taxes are payable, under the Finance Law 2001, by
                                                     
5 These are mentioned in the Report of the Ministry of the Economy, Finance, Budget and Privatization
(1999).  The Gabonese authorities explain that their mention is the result of arrears of collection for earlieryears.WT/TPR/S/86 Trade Policy Review
Page 38
clearing credit approved by the Treasurer-Paymaster General and guaranteed by commercial banks.
The payment of duties and taxes due gives the right to remove the goods.
(c) Customs valuation
17. The provisions of the CACEU Customs Code on customs valuation were amended to
implement the relevant WTO Agreement by:
- Act No. 2/98-UDEAC on the adoption of the regulations on customs valuation6;
- Act No. 4/98-UDEAC amending Article 40 of  the Customs Code, which sets out the
procedure for release of goods where their value is in doubt.
Gabon implemented the new provisions on 1 January 2000, subject to certain reservations
(Chapter III, 3(ii)).
18. Act No. 2/98-UDEAC essentially takes up the provisions of the Agreement on the application
of Article VII of GATT 1994 ("Agreement on Custom s Valuation").  The primary basis of customs
valuation is the transaction value, as defined in Article 1 of the Agreement, namely, the price actually
paid or payable for the goods when they are sold for export to the importing country, plus certain
adjustments, as defined in Article 8 of the WTO Agreement.  When the customs value cannot be
determined on a transaction basis, it is determined using one of the following methods:
1. Transaction value of identical goods (Article 2 of the WTO Agreement);
2. transaction value of similar goods (Article 3 of the WTO Agreement);
3. deductive valuation method (Article 5 of the WTO Agreement);
4. computed valuation method (Article 6 of the WTO Agreement);
5. fallback method (Article 7 of the WTO Agreement).
19. The above valuation methods must be used in the order in which they are listed.  However,
Article 4 of the WTO Agreement states that the importer may request the order of application ofArticles 5 and 6 of the WTO Agreement to be reversed.  Gabon stated in its notification to the WTO
that "the Gabonese Government reserved the right to decide that the provision in Article 4 of the
Agreement on that subject would only apply if the Customs authorities agreed to the request for
reversal of the order of application of Articles 5 and 6". The Gabonese authorities explain this
reservation by the difficulty in practice of valuing goods imported on the basis of the computed valueprovided for in Article 6, because of the inadequate knowledge of cost elements and refusal by the
country of exportation to provide them.  In such circumstances, the Gabonese authorities consider that
the systematic reversal of the order of application of Articles 5 and 6 of the Valuation Agreement
could cause bottlenecks, and Gabon therefore only accepts reversal if the use of the computed method
is possible.
20. Article 35 of Act No. 2/98-UDEAC states that foreign currency values are converted into
CFA francs at the rate of exchange ruling on the date of registration of the customs declaration.  These
                                                     
6 Articles 23 to 26 of the Customs Code concerned the value of imported goods.  Act No. 2/98 is
annexed to Act No. 2/97-UDEAC-603-CD-60.Gabon WT/TPR/S/86
Page 39
rates of exchange are published by the Customs Administration, in liaison with the Bank of Central
African States (BEAC).
21. Article 38 of Act No. 2/98-UDEAC incorporates in full the "Decision Regarding Cases
Where Customs Administrations Have Reason to Doubt the Truth or Accuracy of Declared Values",
which is part of the Marrakesh Agreement.  This Article deals with situations where the customs
office has reason to doubt the correctness of information or documents presented in the detaileddeclaration.  Where the customs administration considers that the transaction value method under
Article 1 of the WTO Agreement cannot be applied, Article 132 of the new Customs Code (Act
No. 3/98-UDEAC) allows the importer to withdraw the goods provided that he provides a sufficient
guarantee in the form of a bond, a deposit or other appropriate instrument covering the amount of
customs duties, duties and similar charges to which the goods may be liable.
22. Gabon has obtained authorization from the Committee on Customs Valuation to retain
minimum values until 1 January 2003, under paragraph 2 of Annex III of the Agreement.
7  T h e s e
values were introduced on 1 May 1996.  The floor value of CFAF 1,000 per kg applies to goods in
tariff lines 02.07.21.01 to 02.07.42.00 inclusive, namely poultry and poultry cuts.  Gabon has
undertaken not to apply minimum values to other products.
(d) Appeals
23. Article 132 of the CACEU Customs Code concer ns appeals procedures.  This Article was
amended by Act No. 3/98-UDEAC in connection wi th the application of the WTO Agreement on
Customs Valuation.
24. The Gabonese authorities have provided the WTO Secretariat with additional information on
appeals, which apply to all disputes which may arise at the time of checking of declarations.  In the
event of a dispute, the customs service assessment is submitted to the Director-General of Customsand Indirect Taxes for his decision.  If the decision is still disputed, the dispute is taken to a joint
arbitration commission.  If the declarer or his legal representative continue to dispute the
administration's position, the case is submitted to the Council of Ministers of CAEMC.  The courts
only have power to decide if all the remedies listed above have been exhausted.
(iii) Customs levies
(a) The CACEU regime
25. Gabon applies the CACEU Acts concerning the common external tariff (CET), the General
Preferential Tariff (GPT) and the turnover tax and excise duties, adopted under the fiscal and customs
reform of 1993.  These Acts set out the general framework for the policies of member countries.
26. Under Act No. 7/93-UDEAC-556-SE1, the CET ap plies to products imported from any place
of origin in the CACEU member countries, other than those originating in CACEU (see below for
rules of origin).  The CET is fixed only on an ad valorem  basis, which enhances the transparency of
the tariff regime.  The CET is also divided into four categories to reduce the complexity of the tariff
regime:
                                                     
7 G/VAL/M/14 contains the report of the relevant meeting of the Committee, G/VAL/14 contains the
Committee's decision and G/VAL/W/38 gives the officially established minimum values.WT/TPR/S/86 Trade Policy Review
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- Category I:  goods of prime necessity:  5 per cent;
- category II:  raw materials and capital goods:  10 per cent;
- category III:  intermediate and other goods:  20 per cent;  and
- category IV:  general consumer goods:  30 per cent.8
The progressive nature of the taxation of goods based on their degree of necessity should also be
noted.
27. Products originating from the CACEU member countries, Cameroon, the Central African
Republic, Chad, Congo, Equatorial Guinea and Gabon have enjoyed a preferential rate reduced to
zero since 1 January 1998.  The liberalization of the tariff treatment of products originating in
CACEU was achieved in three stages, in 1994, 1996 and 1998.
28. The member countries of CACEU are required to subject imported products of any origin
(including CACEU) to excise duties, where applicable, and VAT, except those admitted duty and tax-
free (see below).9  Tobacco, tobacco products (Chapter 24 of the HS) and alcoholic beverages
(Chapter 22 of the HS) are mandatorily subject to excise duty, and other products may appear on the
list (e.g. perfumes and cosmetics).  The rate of excise duty is freely set by each member State in a
range from 0 to 25 per cent.  The rate of VAT may range from 15 to 18 per cent (standard rate) andthe zero rate is applied to exports and international transport.
29. Duty and tax-free imports are authorized under Article 241 of the CACEU Customs Code.
10
They include the following:
- Goods on return in the customs area;
- gifts to Heads of State and Government or to States;
- items for the use of diplomatic missions, consular posts or international organizations
and for the use of their staff;
- moveable effects and items imported on change of residence or inheritance by a
foreigner authorized to reside in the memb er countries of CACEU, items sent to the
Red Cross and other national charitable organizations;
- items that have no commercial character;
- imports of a social or religious nature;
                                                     
8The CAEMC nomenclature and statistics are available on
http://www.izf.net/izf/TEC/afrique%20centrale/index_ac.htm  [6 December 2000].
9 Directive No. 1/99-CEMAC-028-CM-03 amended Act No. 2/96-UDEAC-556-CD-58 amending
Article 1 of Act No. 6/93-UDEAC-556-CD-SE1.  Annex 2 of Directive No. 1/99-CEMAC-028-CM-03 gives the
list of products which may be subject to an excise duty.
10 Act No. 13/65-UDEAC-35 setting out the conditions for the application of Article 241 was amended
by Act No. 2/92-UDEAC-35-CD-SE1.  Directive No. 1/99 CEMAC-028-CN-03 states that products admittedduty-free are also free of VAT and excise duties.  Annex 4 concerns equipment and products admissible tax-freefor mineral and oil exploration purposes.Gabon WT/TPR/S/86
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- imports of an educational, scientific or cultural nature (in particular newsprint,
newspapers and books);  and
- equipment and products intended for certain privileged technical uses (air transport,
mineral and oil exploration).
(b) Gabonese tariff
Rates applied (including temporary surcharges)30. The Gabonese authorities have provided the Gabonese Most-Favoured-Nation tariff (MFN) in
force in 2000 to the WTO Secretariat for the purposes of the trade policy review.  (The WTO
Secretariat has undertaken the task of entering this data for Gabon in the WTO Integrated Data Base
(IDB).)  This tariff is applicable to imported products of any origin, except those originating in
CACEU (see below for rules of origin), which are subject to a preferential rate of zero.  The MFNtariff has also remained in force for 2001, which suggests a stability in the tariff regime.
31. The Gabonese tariff contains 5,605 eight-digit tariff lines.  The importation of goods falling in
five tariff lines is prohibited (opium; raw and refined sugar; and ethyl alcohol).  Of the other
5,600 tariff lines, some are duty and tax-free under Article 241 of the CACEU Customs Code, and to
the other lines, Gabon applies an MFN rate in on e of the four CACEU CET categories:  5 per cent;
10 per cent;  20 per cent;  and 30 per cent.
32. Although Gabon applies the CACEU CET to most ta riff lines, there are nevertheless certain
differences, which are of three kinds:
- Certain Gabonese tariff lines do not correspond with the CET and vice versa;
- the importing of certain Gabonese tariff lines (notably sugar) is prohibited, which is
not the case with the corresponding CACEU items;
- certain Gabonese tariff lines correspond with the CET, but the rate applied by Gabon
is either higher or lower.
For example, Gabon allows duty-free entry of pharmaceutical products and medical equipment, as
well as cereal preparations for children, which are not included among the products admitted duty-free
under Article 241 of the CACEU Customs Code.
33. Since 1994, Gabon has availed itself of the provisions of Article 6 of Act No. 7/93-UDEAC-
556-SE1, which allowed CACEU member countries the possibility of imposing a temporary
surcharge on certain products, including those from CACEU member countries.  The surcharge
concerned two categories of goods:
- Those subject to quantitative restrictions in the member States on 1 January 1994
(Annex 1A of Act No. 7/93-UDEAC-556-SE1), to be abolished by 30 June 1996 atthe latest;  and
- those included on a list (Annex 1B of Act No. 7/93-UDEAC-556-SE1) to be
abolished by 30 June 2000 at the latest.
34. In April 2001, Gabon had not yet finally abolished the temporary surcharge because of
opposition by local producers of identical or directly competing products.  The temporary surcharge isWT/TPR/S/86 Trade Policy Review
Page 42
set at 20 per cent, and affects 25 Gabonese tariff lines, notably vegetable fats and oils (Table III.1).
The taxable base is the same as the taxable base for customs duties, i.e. customs value.11
35. As a result of the combined effect of the tariff applied and the temporary surcharge, the
simple average MFN rate is 18.3 per cent (Table III.2).  The highest tariff level applied is 50 per cent,
affecting products subject to the surcharge of 20 per cent and a customs duty of 30 per cent (see
above).  For products not subject to the surcharge, the highest tariff is 30 per cent, notably on foodsand alcoholic beverages.  The rate of 30 per cent also applies to beauty products, jewellery,
photographic articles, tyres, wood and wooden articles, carpets and fabrics, clothing and textiles,
footwear, construction materials, electrical and electronic household appliances. (Table AIII.2).
Bound rates
36. Gabon is one of the few WTO member countries that bound all its tariff lines on
non-agricultural products in its Schedule of Concessions XLVII annexed to GATT 1994 during the
Uruguay Round negotiations (all duties on agricultural products were bound by all WTO Members).
They were bound at a ceiling level of 60 per cent for duties on agricultural products and 15 per cent
on non-agricultural products, apart from the exceptions noted in the Schedule, bound at 60 per cent.
The arithmetic mean of the bound tariffs is 22.2 per cent.
37. It should be noted that the rates applied by Gabon in 2000 on some 40 per cent of the
Gabonese tariff lines exceed those bound in Schedule XLVII, and that the importation of five
products whose lines were bound is prohibited, which is contrary to the principle of setting a ceiling
on the level of duties applied by the bound levels.  The Gabonese authorities are aware of this
problem and intend to remedy it.  It mainly concerns non-agricultural products taxable at over 15 per
cent (Table III.3).  However, the arithmetic mean of the rates applied, which is 18.3 per cent, remains
lower than the simple average of bound rates, since the majority of the rates applied by Gabon arebelow the bound levels (Table AIII.3).
Dispersion of duties applied
38. The Gabonese tariff (excluding the temporary surcharge) groups products into four main
categories (5 per cent, 10 per cent, 20 per cent and 30 per cent), which appreciably reduces the
dispersion of duties.  The level of dispersion of the applied tariff is indicated by a standard deviationof 9.9 per cent (Table AIII.2).  From the aspect of the well-being of the economy, the lower the spread
of duties, the more economic agents respond to signals from the market, which allows a more efficient
allocation of resources.  Furthermore, a uniform tariff regime is easier to administer and enhances
transparency.  Lastly, a regime of this kind has the effect of easing the pressures on government
officials to obtain economic rents.
Progressivity of the applied tariffs
39. Gabon maintains a tariff regime under which the simple average rate on semi-manufactured
products is, at 14.6 per cent, lower than the simple average for finished products, which is 20.2 per
cent, which gives the manufacturing sector higher levels in practice than suggested by the nominal
rates.  However, it should also be noted that the simple average of rates on non-manufacturedproducts, at 19.1 per cent, is higher than the simple  average of those for semi-manufactured products,
due to the relatively high level of tariff protection granted to the agricultural sector.
                                                     
11 Article 8 of the Act.Gabon WT/TPR/S/86
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Table III.1
Products subject to the temporary surcharge, 30 April 2001
Tariff number DescriptionCustoms duty
%Surcharge
%Total
%
02073400 Foie gras, of ducks, geese or frozen 20 20 40
04070090 Other eggs 30 20 50
11010010 Wheat flour 30 20 50
15079000 Soya oil and its fractions, refined 30 20 50
15099000 Olive oil and its fractions, refined 30 20 50
15119000 Palm oil and its fractions, refined 30 20 50
15121900 Sunflower oil and its fractions , refined 30 20 50
15122900 Cotton oil and its fractions, refined 30 20 50
15131900 Coconut oil (copra), and fractions, refined 30 20 50
15132900 Palm heart oil and its fractions, refined 30 20 50
15149000 Rape oil and its fractions, refined 30 20 50
15151100 Linseed oil, crude 10 20 30
15152100 Corn oil, crude 30 20 50
15152900 Corn oil and its fractions, refined 30 20 50
15153000 Castor oil and its fractions 10 20 30
15154000 Tung oil (abrasin) and its fractions 30 20 50
15155000 Sesame oil and its fractions 30 20 50
15162000 Interesterified vegetable fats and oils 30 20 50
22011010 Natural mineral waters 30 20 50
24022000 Cigarettes containing tobacco 30 20 50
27100082 Industrial lubricants 10 20 30
27100083 Automotive lubricants 10 20 30
34011100 Toilet soaps and similar products 30 20 50
34011910 Household soaps, in bars, in pieces 30 20 50
34011990 Other products in No.  34.01.19 30 20 50
Source: Gabonese authorities.
Table III.2
Rates of MFN duties (including temporary surcharges) actually applied, 2001
Imports 1998 Eight-digit tariff lines
Value
(millions of US
dollars)Proportion
(%)Arithmetic mean of
duties
(%)NumberProportion
(%)
Total 900.5 100.0 18.3 5 600 100.0
WTO definition
Agricultural products 165.7 18.4 22.9 837 15.0
Non-agricultural products (excluding oil) 718.4 79.8 17.5 4,743 84.3
Oil 16.4 1.8 12.0 20 0.7
Harmonized System Definition
Primary productsb174.6 19.4 24.0 880 15.7
Other products 725.9 80.6 17.2 4,720 84.3
a In Annex 1 of the WTO Agreement on Agriculture, agricultural products are defined as products in HS Chapters 01 to 24
excluding fish and fish-based products (Chapter 3), plus certain products in Chapters 29, 33, 35, 38, 41, 43, 50, 51, 52 and 53 .
b HS Chapters 01 to 24.
c HS Chapters 25 to 97.
Note: The tariff consists of 5,605 eight-digit lines.  The importing of goods in five lines is prohibited (opium;  raw and refin ed sugar;
and ethyl alcohol).  The arithmetic mean is calculated on the basis of the other 5,600 tariff lines.
Source : Calculations by the WTO Secretariat from data supplied by the Gabonese authorities.WT/TPR/S/86 Trade Policy Review
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Table III.3
Distribution of rates applied (including temporary surcharges) and bound, 2001
Rate applied Bound rate
Frequency Percentage Frequency Percentage
Exempt 115 2.1 0 0
51 8 3 3 . 3 0 0
10 2,551 45.6 0 0
15 0 0 4,709 84.0
20 697 12.4 0 0
30 2,033 36.3 0 0
40 1 0.0 0 0
50 20 0.4 0 0
60 0 0 896 16.0
Note: The tariff consists of 5,605 eight-digit lines.  As the importing of goods in five lines is prohibited (opium;  raw and re fined sugar;  and
ethyl alcohol), the data on the rates applied are for the other 5,600 tariff lines.  The data on the bound tariffs is for the 5 ,605 tariff lines.
Source : Calculations by the WTO Secretariat from data supplied by the Gabonese authorities and Schedule of
Concessions XLVII.
40. Under the ISIC two-digit classification, the pr ogressivity of duties, from raw materials to
intermediate goods is more apparent (expressed as absolute variations between duties) in the textiles
and clothing industries, and wood and woodworking (Chart III.1).  The inverse effect of the
degressivity of duties is especially apparent in the non-metallic metals industry, due to the 30 per centduty on diamonds.  In addition, there is progressivity in duties from intermediate to finished goods, a
progressivity which is more pronounced in the textiles and clothing industry and base metals.
(c) Excise duties
41. Gabon instituted the current excise duty regime on 1 April 1995 under Law 1/95 of
24 February 1995.  The Finance Law 1999 (Law 13/99) revised the list of products subject to exciseduties and the level of duties applicable for 2000, and those provisions remain in force for 2001:  beer
(22 per cent) and wine (22 per cent), other alcoholic beverages (32 per cent), mineral waters (32 per
cent), cigarettes and cigars and other tobacco products ready for consumption (28 per cent).
12
42. Excise duties are applied to imported products of any origin (including CACEU), identified
by tariff line in the Gabonese tariff.   The taxable base for excise duty is the customs value pluscustoms duty (including the temporary surcharge, where applicable).
43. In principle, products of local origin are also subject to excise duty,  However, Law 13/99
states that the rates on local beers, local wines, local mineral waters, and locally produced cigarettes,
cigars and cigarillos are calculated on the ex-factory value "after a reduction fixed by decree of the
Minister of Finance and the Economy".  Since no similar reduction is applied to imported products, itwould appear that the principle of national treatment is compromised in order to protect local
industries.  The Gabonese authorities state, however, that there is at present no such decree setting a
reduction on the ex-factory value.
                                                     
12 Appendix II of the General Code on Direct and Indirect Taxes.Gabon WT/TPR/S/86
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05101520253035Chart III.1
Progressivity of duties under the ISIC two-digit industrial classification, 1999
Per centPrimary products
Semi-finished products
Finished products
Source:  WTO Secretariat based on data provided b y the Gabonese authorities.
(d) Value added tax
44. Gabon introduced value added tax (VAT) on 1 April 1995 under Law 1/95 of
24 February 1995.  VAT replaced domestic turnover tax, sales tax and tax on import turnover.  VAT
is levied at the frontier on imported products.  It is also charged in principle in the domestic market on
products of Gabonese origin.  At the frontier, VAT is calculated on the customs value plus customs
duty (including the temporary surcharge, if applicable) and the excise duty, if applicable.
45. The standard rate of VAT was set at 18 per cent for all taxable transactions and at zero for
exports and international transport.13  Certain transactions, manufacture and sale of mineral water,
chicken, sugar and cement, are subject to a lower rate of ten per cent in the domestic market.14  Since
this lower rate is not matched in the case of imports (imports of sugar are prohibited), it would appear
that the principle of national treatment is compromi sed to provide protection to local industries.  It
should also be noted th at certain state enterprises (ANDZA, AGROGABON) are exempted from VAT
(Section 3(v)).
46. Basic necessities, such as milk (liquid, powdered, sweetened or unsweetened);  margarine,
butter, yoghurts;  newspapers and newsprint;  exercise books and text books;  bread, flour, yeast and
gluten;  rice;  medicines; canned sardines and pilchards, and pasta;  and capital goods and
personalized supplies for tourist hotel enterprises, are exempt from VAT at the frontier and on the
                                                     
13 Gabon noted the presence of other duties and exceptions at a level of 150 per cent in column 6 of the
Schedule of Concessions XLVII.  Since the commencement of the WTO, Gabon has notified levels of exciseduties and VAT to the Committee on Market Access which examined them.
14 Article 177 of the General Code on Direct and Indirect Taxes.WT/TPR/S/86 Trade Policy Review
Page 46
domestic market. 15  Also free of VAT are imports of goods exempted under Article 241 of the
CACEU Customs Code, as amended by Act 2/92 UDEAC-556-CE-SE1, and imports by companies
operating under the mining code of consumable goods which cannot be supplied by the domestic
market, the list of which is established by decree.
(e) Customs revenues
47. Revenues collected by the Customs Authorities consist, in principle, of customs duties
(including the temporary surcharge), excise duties and VAT on imported products, and excise duties
on exported products.  The total amount of revenues collected on imported products was
CFAF 133,906 million in 1999, and on exported products CFAF 18,873 million, making a total of
CFAF 152,779 million for 1999.
48. The total amount of import revenues was levied on a total taxable value of
CFAF 554,453 million, which gives a level of duties and taxes of 24 per cent for imported products.
However the combined imposition of customs duties (average 18.3 per cent), excise duties, where
applicable, and VAT (18 per cent) suggests a much higher overall level.
49. One explanation is the difference between the calculation of an arithmetical average and a
weighted average for imports, the latter normally giving a lower effective tax rate.  Anotherexplanation is the level of goods admitted free of duties and taxes.  Gabon allows imports free of
customs duties and taxes under various regimes, notable under Article 241 of the CACEU Customs
Code.  Moreover, exemptions may arise under other regimes such as special agreements, reduced rate,
oil, mining and other agreements.  The reduced tax rate (five per cent) is contained in agreements
between the State and companies under the Investment Code (see below), and concerns equipment
directly destined for production.  The "loss of earnings" resulting from the various duty and tax
exemptions was CFAF 39,829 million for 1999 (Table III.4).  If no exemptions had been allowed in
1999, customs revenues would have been 26 per cent higher in that year.
Table III.4
Loss of earnings through exemptions, 1997-1999, at 31 December
(CFA Francs)
Fiscal regime 1997 1998 1999
CACEU Exemptions 3,303,594,109 3,460,898,783 3,477,861,944
State procurement exemptions 1,466,908,536 797,170,384 1,214,665,505
Exemptions under special agreements 347,593,505 301,899,103 1,195,928,745
Exemption agreements (oil/mining) 13,430,469,596 12,752,841,224 3,449,334,029
Other exemption agreements 541,914,349 626,618,291 470,497,135
Exemptions Act 13/65 5,279,189,418 5,500,196,458 11,431,319,290
Exceptional exemptions (other) 1,012,379,260 3,192,152,089 1,386,495,440
Reduced rates n.a. n.a. 77,053
Reduced rate agreements (oil/mining) 17,199,582,669 18,744,442,435 15,178,900,041
Reduced rate agreements (other) 61,158,489 115,341,693 1,315,896,084
Stabilized regime 177,028,086 199,050,715 708,462,023
TOTAL 42,819,818,017 45,690,611,175 39,829,437,289
n.a. Not applicable.
Source: Ministry of the Economy, Finance, Budget and Privatization (1999), page 5.
                                                     
15 Law 3/97.Gabon WT/TPR/S/86
Page 47
50. There is a strong incentive to tax avoidance and fraud at the frontier for certain products
because of the relatively high tax level.16  The fact is that an imported product is subject to customs
duty (including the temporary surcharge where applicable), to which is added an excise duty, where
applicable, and VAT.  The aggregate level is highest for imported natural mineral waters, which are
subject to a customs duty of 50 per cent, to which is added an excise duty of 32 per cent and VAT of
18 per cent, a total cumulative tax level of 133.64 per cent (Table AIII.4).  In second place comecigarettes, which are subject to customs duty of 50 per cent, plus excise duty of 28 per cent and VAT
of 18 per cent, a total cumulative rate of tax of 126.56 per cent.
51. The temptation to fraud also applies to domestic manufacturers, but to a lesser extent because
of the absence of customs duties.  Thus, domestic production of natural mineral waters is subject to an
excise duty of 32 per cent and reduced VAT of 10 per cent (suspended for ANDZA), a totalcumulative rate of 45.2 per cent (32 per cent for ANDZA), i.e. one third (one quarter for ANDZA) of
the level for the imported product, a comfortable margin of protection.
(iv) Rules of origin
52. Article 22 of the CACEU Customs Code defines ge nerally applicable rules of origin.  Thus,
natural products originate from the country where they are extracted or harvested, and productsmanufactured in a single country without inputs of  materials from another country originate from the
country in which they are manufactured.  Article 22 also mentions the definition of rules of origin in
cases where the product has been obtained in one country using products from another country or
manufactured in another country, without giving precise details.
53. As a member of CACEU, Gabon applies the rules of origin established to define a "CACEU
product", and thus eligible for the application of the preferential rate (currently zero).  These rules of
origin are set out in Chapter III of Act 7/93-UDE AC-556-SE1.  Article 9 defines a "CACEU product",
certified as such, as any finished product or any raw material:
- Obtained entirely in the member States of CACEU, in accordance with Article 10
(minerals extracted from the ground,  products of fishing, hunting and agriculture, or
wholly manufactured from such products without any imported input);  or
- manufactured in the territory of CACE U member States from products wholly
obtained or imported raw materials, provided that import formalities have been
fulfilled, in particular the applicable duties and taxes have been collected and not
refunded.
54. Changes to the rules of origin are currently  being considered within CACEU in order to
introduce the concept of a product manufactured in the Union from imported components, subject tocertain conditions.  The object would be to encourage the establishment of production units in a
member State in order to serve the enlarged market of the Union.
17  The definition of product of origin
would be extended in particular to:
                                                     
16 Tax avoidance means legitimate methods used by taxpayers to avoid, by tax planning, paying taxes
and levies established by law, while tax fraud means dishonest non-payment of taxes and levies due.
17http://izf.net/izf/Institutions/IntégrationéconomiqueenAfriqueCentrale/TexteBase/Definition.htm
[12 January 2001].WT/TPR/S/86 Trade Policy Review
Page 48
- Industrial products whose manufacture includes raw materials of community origin
representing a value of at least 40 per cent of the total raw materials used18;  and
- industrial products which do not satisfy the foregoing criteria, but for which the
industrial added value is equal to or greater than 30 per cent of the ex-factory value.19
(v) Prohibitions, quantitative restrictions and products subject to licensing, sanitary and
phytosanitary measures, technical st andards and accreditation procedures
55. The CACEU Customs Code contains in its app lication rules (D3) the products subjected by
Gabon to prohibition of imports, a licensing regime or controls of a sanitary or phytosanitary nature
(Table AIII.5).  These are products commonly banned from imports, such as narcotic drugs, or subject
to control by the authorities, such as explosives, arms and munitions, or live plants and animals or
their meat.  In addition, the Gabonese authorities informed the WTO Secretariat of control measuresapplied to pesticides and industrial chemicals in accordance the PIC schedule (prior information and
consent principle) of the United Nations Environment Programme (UNEP) and the United Nations
Food and Agriculture Organization (FAO).
56. The authorities subject the category of measuring instruments to an initial check on import
and periodic checks, which give rise to the collection of a variable levy.  It should also be noted thatOrdinance No. 8/2000/PR, regulating the telecomm unications sector, requires approval by the
Telecommunications Regulation Agency or an approved laboratory of terminal equipment intended
for connection to a network open to the public, as well as any radio installation.  The object is to
ensure compliance with essential requirements and verify conformity with standards and
specifications.  In the absence of specific Gabonese standards and specifications, the Agency applies
those of ITU.
57. Quantitative restrictions were abolished under the CACEU fiscal and customs reform by
Decree No. 116/PR/MFEBP-PART in 1996, which also  stated that prohibitions on the imports of
sugar and spring or table waters (contained in heading 22.01.01) would remain in place until 1997.
However, the Gabonese authorities informed the WTO Secretariat of the ban on imports of sugar (in
all its forms) until 2004.  This prohibition is consequent on the privatization of the state enterprise
SOSUHO, which held the monopoly of imports, production and marketing of sugar in Gabon.  Thesugar monopoly is currently held by the Sucaf-Gabon company.
(vi) Emergency measures
58. Article 13 of the CACEU Customs Code states that member States have the possibility of
imposing on entry into the territory of the Union, "when the imports cause or threaten to cause
material injury to national production of an identical or directly competing good:
- A countervailing duty on goods, taxed or otherwise, which enjoy in a foreign country
a direct or indirect relief or subsidy, regardless of the nature, origin or mode of
attribution;
- an anti-dumping duty on goods taxed or otherw ise where the price paid or payable is:
                                                     
18 The proportion of raw materials of community origin would be raised to 50 per cent on
1 January 2003 and 60 per cent on 1 January 2008.
19 The proportion of domestic added value would be raised to 40 per cent on 1 January 2003 and 50 per
cent on 1 January 2008.Gabon WT/TPR/S/86
Page 49
- lower than the comparable price applied in the course of trade under conditions
of full competition for like goods intended for consumption in the country of
origin or one of the countries of transit or provenance, after deducting duties
and taxes applicable to sales in those countries from which the goods concerned
may have been exempted or which would be reimbursable on export;
- or, in the absence of such a price, lower than the highest comparable price
applied in the course of trade under conditions of full competition for similar
goods exported to a third country, or less than the real or estimated cost of
production of that good in the country of origin plus a reasonable amount for
selling costs and profit."
The CACEU Executive Committee determines the methods of application and the countervailing and
anti-dumping duties.  However, there are at present no countervailing or anti-dumping duties in effect.
59. In establishing its competition polic y under Regulation No. 1/99UEAC-CM-639, Gabon
passed an anti-dumping decree which also covers products subsidized in their country of origin.  Its
application awaits the adoption of the implementing regulations.  The scope is explicitly stated as the
Members of the WTO.  However, the essential elements of the WTO Agreements on this subject aremissing in relation to definitions, modalities, procedures and application of duties.  For example, on
the subject of the WTO Agreement on the Implementation of Article VI, the decree does not contain
all the elements laid down for the determination of  dumping (Article 2), nor the existence of injury
(Article 3), nor the methods for instituting a nd conducting an investigation, nor the duration of
measures.
(vii) State trading
60. Gabon does not have any State trading enterprises within the meaning of GATT Article XVII
involved in imports.  However, it should be noted that the State enterprise SOSUHO held the
monopoly of sugar imports until it was privatized in 1998.  The sugar monopoly in the domestic
market was transferred to the Sucaf-Gabon company, which applies a prohibition on imports of sugar
in all its forms.
(2) 
MEASURES DIRECTLY AFFECTING EXPORTS
(i) Duties and taxes
61. The Gabonese authorities have provided the WTO Secretariat, for the purposes of its trade
policy review, with a list of exit duties applicable to exported products in force in 1999, which have
remained in place in 2000 and 2001.  These are mainly manganese (three per cent) and unsquared
tropical woods (15 per cent), such as Okoume and ozigo.  Squared tropical woods are exempt fromexit duty so as to encourage squaring of the wood locally.  It should be noted that goods and services
for exports and services provided in relation to exports are free of VAT.
(ii) Prohibitions and products subject to licensing, sanitary and phytosanitary measures
62. Gabon does not currently apply any ban or quantitative restriction on exports.  No product is
required to have an export licence, apart from products normally subject to control (for example,chemicals).  However, exports of live plants or animals, or their meat, and fishing products, need the
certificates that will be required at the country of destination.WT/TPR/S/86 Trade Policy Review
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(iii) Subsidies and promotion of exports
63. Gabon does not appear to have any subsidies or measures directly related to promotion of
exports.
(iv) State trading
64. The export of Okoume and ozigo wood from Gabon is a monopoly of the Gabon national
timber company (Sociéte nationale des bois du Gab on, SNBG).  However, the exploitation of Gabon's
forest resources is carried out by private or state enterprises which are required to sell their production
of these items to SNBG, which undertakes the tran sport and customs clearance procedures for export
of the wood (Chapter IV, 3).  Exports of wood are subject to an export duty (see above).
(3) INTERNAL MEASURES
(i) The legal regime for enterprises and companies in Gabon
65. Gabon is a member of the Organization for the Harmonization of Business Law in Africa
(OHADA), found ed in 1993.20  Its main aim is to remedy the legal and judicial uncertainty in its
member States, mainly the result of the age of the legal texts in force mostly dating from the colonial
era.  The seven uniform acts of OHADA on comme rcial companies adopted to date concern:
- General commercial law;
- law of commercial companies and economic interest groups;
- organization of guarantees;
- simplified recovery procedures and methods of enforcement;
- collective procedures for discharging liabilities;
- law of arbitration;  and
- format and harmonization of company accounts.
66. The Common Court of Justice and Arbitration, based in Abidjan in Côte d'Ivoire, is the court
of appeal, in place of national courts of appeal, for any litigation under the uniform law.  Application
may be made to the Court, directly by one of the parties to a dispute before a national jurisdiction, or
by referral from a national jurisdiction.  The Court organizes and controls the effective conduct of
arbitration proceedings:  it appoints or confirms the arbitrators, is informed of the progress of the
proceedings and reviews the draft decisions, to which it can only suggest amendments of a purelyformal nature.
67. The first three uniform acts entered into force in Gabon on 1 January 1998 (companies
formed under the old rules had until 1 January 2000 to comply).  The following three uniform acts
entered into force in 1999.  Latt erly, the OHADA Council adop ted the uniform act on the format and
harmonization of company accounts, which entered into force in 1 January 2001.
                                                     
20 The member countries of OHADA are Benin, Burkina Faso, Cameroon, the Central African
Republic, Chad, Congo, Comoros, Côte d'Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali,Mauritania, Niger, Senegal and Togo.  See http://www.cm.refer.org/eco/ecohada/ohada.htm.Gabon WT/TPR/S/86
Page 51
68. The formation of a personal business or company in Gabon requires the following:  approval
by the Directorate-General of Trade;  registration with the Directorate-General of Direct and Indirect
Contributions;  registration in the chronological register of the Commercial Court;  and payment of a
licence and various charges to the Treasury.  An enterprise formed as a company must also register
with the Directorate-General of Property (Direction Générale des Domaines).
(ii) Fiscal regime
69. The fiscal regime applied to enterprises is governed by the General Code on Direct and
Indirect Taxes, as amended by the finance laws (see Law 13/99 for amendments for 2000 and
Law 17/2000 for those applicable in 2001).  The provisions of the Code on Registration, Income from
Investments in Securities and Stamp Duty also apply to commercial companies.
70. Commercial companies are subject to direct and indirect taxes in respect of their profits, taxes
on salaries payable by the employer and tax deducted at source by the employer (20 per cent) on
income of natural persons;  and VAT (basic rate 18 per cent).  Investors also have the possibility of
obtaining additional tax reliefs under the Invest ment Code (Law 15/98) or under agreements
individually concluded with the State.
71. Commercial companies are subject to indirect taxes related to their field of activity as
follows:  taxes on profits of non-oil companies;  taxes on the profits of oil companies;  flat rate tax on
turnover of oil subcontractors.  In addition, oil, forestry and mining companies are subject to various
specific taxes on their activities.21
72. Corporation Tax (Impôt sur le bénéfice d'une société, IS) has been 35 per cent since 1997 for
non-oil companies.  In addition, the tax may not be less than 1.1 per cent of turnover.  Even in the
case of a loss, a flat rate minimum annual tax of CFAF 600,000 is payable.  However, a large number
of reliefs reduce the scope of application of corporation tax (IS) and the minimum tax:
- Corporation tax (IS) does not apply to companies and cooperatives of a civil nature in
the agricultural sector, or other categories of company, and, in particular, during thefirst three years of activity, "business related to the export of agricultural products,
agriculture, livestock and transformation of agricultural products except for theforestry and fisheries sectors", and enterprises operating tourist hotels (Law 13/1999);
- corporation tax (IS) and personal inco me tax (IRPP) do not apply to "new"
enterprises, engaged in a new activity, in the category of industrial and commercial
profits, or agricultural profits, up to the end of the second fiscal period (reduction of30 per cent for the third year).  Only industrial, mining, agricultural and forestry
activities may benefit, subject to a guarantee, from certain conditions
22;
                                                     
21 For example, all oil companies are subject to a mining levy proportional to production (Law 14/74).
22 Under Article 140 of the General Code on Direct and Indirect Taxes, "the new activity must have
required, at the end of the above-mentioned third fiscal period, fixed and permanent assets equal to at least ten
times the amount of the profits made during that same year.  These profits are determined before any offset ofprevious losses.  The mere development of one or mo re activities already exercised by the same enterprise
cannot be considered as a new enterprise.  The new enterp rise must not have as its principal object to compete
with activities performed satisfactorily in the territory by existing enterprises.  The enterprise is required to
maintain proper accounts in accordance with the OCAM-CACEU accounts format such as to show the netoperating profit of the new operation for each of the above-mentioned fiscal periods.  The benefits envisaged aregranted by decision of the Ministry of Finance at the request of the taxpayer submitted before the formation ofthe enterprise.  When the Minister of Finance rejects the application, the taxpayer may request the aboveWT/TPR/S/86 Trade Policy Review
Page 52
- the minimum tax does not apply to "new" enterprises, those subject to the Mining
Code, those engaged in processing of agricultural products or in a tourist hotel
activity (first ten years of operation), public works, transport and fire insurance under
certain conditions, companies and legal persons covered by a special tax regime
under a contract or agreement concluded with the State.
73. The fiscal regimes applying to oil companies are of two types.  Under the concession regime
(abandoned in 1983), the provisions are those established for each oil company under the formation
agreement, for a minimum duration of 75 years, concluded with the State.  Since the end of that
regime, almost all contracts have been in the form of a contract for exploration and share of
production (contrat d'exploration et partage de production, CEPP), and each company is subject, interalia, to corporation tax (see above).  Taxation of oil companies has thus become more transparent and
uniform.  Oil subcontractors may enjoy a flat rate basic tax on turnover of 6.8 per cent subject to
review every three years, for a period not exceeding nine years.
74. Until 1997, a compulsory subscription to the Gabonese investment fund to encourage
investment was in force in Gabon.  All companies liable to taxation (as well as natural persons) wererequired to participate.  This measure remains valid only for forestry companies over a certain
minimum capital threshold.  The rate is set at 5 per cent of settlements made by traders in rough
timber in zone one, and 2.5 per cent for those in zone two (Chapter IV,3).
75. The licence (see above) also gives rise to an annual tax based on a general rate which varies
depending on the size, nature and location of the enterprise.
76. Exemption from VAT (see section 2(e) above for provisions concerning imported products)
concerns products of cultivation, capital goods for agricultural activities and livestock breeding,agricultural fertilizers and phytosanitary products, capital goods and personalized supplies to tourist
hotel enterprises.  Certain operations are also exempt:  these are mainly services or operations of a
social nature, and sales of products of extractive activities.  It should be noted that financial
enterprises, exempt from VAT since 1995 but liable to a tax on financial activities, are currently
subject to VAT.  This change in  the fiscal regime makes the liability of enterprises to VAT more
uniform.
(iii) Investment regime
(a) Framework Law
77. The Investment Charter (Law 15/98) sets out the general conditions for investment in Gabon
by foreign and national persons, and repeals all prior provisions (notably Law 7/89).
23  The Charter
states that in certain sectors of activity, notably those related to exploitation and processing of natural
resources, specific codes are in force.  These are, in particular, the Forestry Code (Law 1/82, with
draft amendments pending), the Mining Code (Law 11/99, subject to amendment in line with a draft
Oil Code), and Ordinance No. 2/2000 on the regime a pplicable to investment in tourism (Chapter IV).
                                                                                                                                                                    
benefits by appeal under the provisions of Articles 499 and following of this Code.  When, after receiving the
approval of the Minister of Finance, a new enterprise exercising a new activity does not fulfil all the conditionslisted above, the tax on the profits made since the commencement of operations is calculated in accordance withthe provisions of paragraph one of Article 385 of this Code and the contributions are increased by 10 per cent".
23 The CAEMC Community Investment Charter, adopted in 1999, was inspired by it.Gabon WT/TPR/S/86
Page 53
78. In its Title I, the Investment Charter states that companies or persons that wish to set up in
business in Gabon, subject to the specific rules relating to certain sectors, are guaranteed the
following:
- "Freedom to engage in any activity of production, supply of services or trade
irrespective of nationality;
- equality of treatment in the exercise of an activity in accordance with the principles
and provisions of the law on competition and the responsibilities assigned toindependent sectoral regulatory bodies;
- property rights related to land, buildings, operating equipment and those related to
moveable assets, securities, patents and other industrial and intellectual property
rights;
- expeditious procedures for the assignment or acquisition of land and delivery of title
deeds;
- freedom for foreign investors to repatriate capital invested and profits of their
operations, and repatriation of savings from their salaries by their expatriate
personnel;
- access to foreign currency and the freedom to transfer capital within the rules of the
franc zone, and more especially those of th e Bank of Central African States (BEAC);
- the fair and transparent application of business law adopted in accordance with the
Treaty of the Organization for the Harmonization of Business Law in Africa
(OHADA);
- the fair and transparent application of labour and social security law passed under the
Treaty of the Inter-African Conference on Social Security (CIPRES);
- the independence and professional competency of specialized courts and
jurisdictions."
79. In its Title III, the Investment Charter states that Gabon has concluded bilateral agreements.
This applies in particular to treaties to avoid double taxation of companies and tax fraud concluded
with France, Belgium, Italy, Morocco, South Africa, the countries of the former African and
Malagasy Common Organization (OCAM)
24, and the CAEMC countries.  In 1994, Gabon became a
member of the Multilateral Investment Guarantee Association (MIGA) and the International Centre
for Settlement of Investment Disputes (ICSID ).  Gabon is a member of OHADA, whose court of
justice and arbitration is competent in the event of dispute over the application of OHADA business
law.
80. In its Title IV, the Investment Charter provides for an agency for the promotion of private
investment (Agence de promotion des investi ssements privés, APIP) as a one-stop shop where
promoters can complete the formalities for the formation of an enterprise.  Thus, Article 8 of the
Charter envisages a simplification of approval procedures for investment in activities not covered by
specific codes and regulated professions.  The promoters would be subject to a regime of a simple
                                                     
24 Benin, Burkina Faso, Cameroon, the Central African Republic, Chad, Congo, Côte d'Ivoire, Gabon,
Niger, Mauritania, Rwanda, Senegal and Togo.WT/TPR/S/86 Trade Policy Review
Page 54
declaration of the creation of an activity to be communicated to the administrations concerned, which
would have 48 hours to raise any objection.  The Agency was established by Ordinance No. 6/99/PR
and the one-stop shop will start operations during 2001.
81. Article 14 of the Charter deals with arrangements on duties and taxes, and the tax liabilities of
companies formed by investors (Box III.1).  It should be noted that the arrangements in question are
of general application and established by the CACEU Customs Code, the General Code on Direct andIndirect Taxes, and the Code on Registration, Income  from Investment in Securities and Stamp Duty.
Regimes for exemption or relief from duties and charges, or exemption or reduction of taxes, are only
available under the sectoral codes (mining, forestry and tourist sectors) or under agreements
concluded between the enterprise or individual and the State.  Thus, the sectoral codes give
entitlement to exemption from duties and charge s for imports of capital goods for the purposes of
their activity.  The "reduced tax" regime (5 per cent) for customs duties is set out in agreements
between the State and oil and mining companies, and concerns equipment directly intended for
production.
82. Title VI of the Charter concerns the organization of the financial system.  Access to financing
for enterprises is through the private banking system.  However, the financing of small and mediumenterprises, designated as such, is supported by various funds provided that their capital is 51 per cent
Gabonese, or they are managed by Gabonese nationals and their turnover does not exceed
CFAF 500 million (Law 1/81).  The two main funds are the Fund for the expansion and development
of Gabonese small and medium-sized enterprises (FODEX) and the Fund for Assistance and
Guarantees to SMEs (FAGA).
83. It should be noted that Gabon has no trade-related investment measures but expects the
foreign investor to demonstrate a propensity to employ Gabonese nationals.
25
(b) Employment of nationals and expatriates
84. The density of the Gabonese population is low (some 4.9 inhabitants per square kilometre),
but its demographic growth is strong (3.4 per cent between 1980 and 1994).  The labour market in
Gabon is subject to major inflows to urban centres.26  Given the scale of extractive activities, the low
income from subsistence agriculture and the weakness of the manufacturing sector, Gabon's economyhas difficulty in balancing popular demand for jobs with average to high incomes and the supply on
the labour market, hence there is a relatively high rate of unemployment (estimated at 21 per cent in
1997)
27 and a large informal sector.  It is against this background that the strategy of "Gabonization"
must be understood.
85. Investors in Gabon must observe the Labour Code (Law 3/94).  This "guarantees broad
employee protection, notably strict constraints on dism issals (for economic or personal reasons))" and
"a minimum national guaranteed wage which is a minimum below which it is prohibited to pay
employees".28  In 1999, new hirings of Gabonese personnel were subsidized by a tax credit equal to
20 per cent of the gross wage, a measure which is no longer in force.  In the context of foreign
investment, an observer noted that without a reform of the Labour Code, inter alia , the Investment
Charter would have no real impact.29
                                                     
25 United States Government, Department of Commerce, International Trade Administration (2000).
26 Panhuys and Gasarian (1998).
27 World Bank (2000b).
28 Enterprise Creation Agency (1999).
29 "The Businessman's Guide to Africa", available on: http://www.izf.net.Gabon WT/TPR/S/86
Page 55
Box III.1:  Principles of enterprise taxation under the Investment Charter
(1) Customs
- The application of reasonable harmonized customs duties in the framework of the common external tariff
of the Central African Economic and Monetary Community (CAEMC);
- the suspension of customs duties in the form of temporary import or duty free import for exploration
relating to natural resources, under specific codes;
- the suspension of customs duties in the form of temporary import or duty free import and processing
equipment for export related activities.
(2) Direct and indirect taxes
- The application of a zero rate of value added tax on products exported to allow reimbursement of VAT
paid on investments and the operating costs of exporting enterprises;
- the application of provisions equivalent to suspension of payment of value added tax on investments
under specific codes;
- exemption from corporation tax during the first three years of operation;- the possibility of progressive amortization and authorization to carry forward losses to subsequent
periods to improve enterprises' cash flow in the start-up phase;
- the application of import tax credits to encourage technological research, vocational training, protection
of the environment under specific codes;
- the application of import tax credits, compensation or equipment grants to match investments and
operating costs incurred by enterprises in rural areas relating to social services corresponding to theState's current missions, where the latter is not in a position to provide them;
- maintenance of property taxes at a level corresponding  to the service provided  by local authorities and
the State in respect of urban infrastructure and public services.
(3) Land and registration
- Moderation of registration duties for company forma tions, capital increases, merg ers, transfers of shares
and securities.
Source:   Title V of Law 15/98.
86. Reform of the Labour Code is part of the structural reforms envisaged by the Executive
during the current year, in order to encourage job creation and improve the living standards of the
poorest sections of the population.30  The Executive thus submitted to Parliament in July 2000 a draft
law containing major changes to the Labour Code to remove provisions which act as a brake on
recruitment.
87. Gabon allows the entry and temporary stay of business missions in the country for a period
not exceeding three months.  On the matter of services, Gabon did not bind the supply of services by
                                                     
30 Government of Gabon, "Memorandum of Economic and Financial Policies of the Government of
Gabon", 12 September 2000, available on:  http://www.imf.org.WT/TPR/S/86 Trade Policy Review
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the presence of natural persons (mode 4), in line with the practice of other WTO Members, but it
allows the entry and temporary stay of natural persons in the categories of directors, senior staff and
experts with expertise essential to the supply of the service, employed by a company and transferred
to a company formed in Gabon.
88. The objective of the authorities being to ensure the "Gabonization" of employment,
recruitment of foreigners is subject to the following procedure:
- A prior application to the competent polic e authority for authorization to enter
Gabon;
- a prior application to the Ministry of Labour for an employment permit in support of
which the employer must produce an unconditional commitment to repatriate theforeign worker and, if appropriate, his family;
- conclusion of a contract of employment which will be subject to endorsement by the
employment services, followed by issue of a foreign work permit valid for two years
and renewable subject to a new endorsement;  and
- issue of a residence permit to the foreign worker and his family (children under 16).
This procedure applies to the recruitment of foreigners in Gabon, irrespective of their nationality.
31
(iv) Protection of intellectual property rights
(a) Overview
89. Gabon is a member of the Convention Establishing the World Intellectual Property
Organization (WIPO), signed in Stockholm (1967) .  Gabon acceded to the Paris Convention (1883)
for the Protection of Industrial Property, as amended in Stockholm (1967), the Berne Convention
(1886) for the Protection of Literary and Artistic works, as amended in Paris (1971),  and the Lisbon
Convention (1958) for the Protection of Appellations of Origin and their International Registration, as
amended in Stockholm (1967).   Gabon is a contracting party to the Patent Cooperation Treaty, signed
in Washington (1970).
90. Since its independence, Gabon has participated in the efforts of the franc zone countries to
establish a uniform regime for the protection of intellectual property, which would be effective in all
the countries concerned, and common administrative procedures to manage the regime.  These efforts
began with the creation in 1962 of the African and Malagasy Industrial Property Office under theLibreville Agreement, amended by the Bangui Ag reement (1971) to create the African Intellectual
Property Organization (AIPO), based in Yaoundé, Cameroon.
32
                                                     
31 The United States authorities maintain that the principle of equal treatment of foreign investors does
not extend to this area, given the more favourable conditions enjoyed by French nationals (United StatesGovernment, Department of Commerce, International Trade Administration, 2000).  The Gabonese authorities
explain that no such measure applies to French nationals, although the presence of many French companies
militates in favour of the employment of their nationals.
32 The members of the Bangui Agreement (1971) are Benin, Burkina Faso, Cameroon, the Central
African Republic, Chad, Congo, Côte d'Ivoire, Gabon, Guinea, Guinea-Bissau, Mali, Mauritania, Niger, Senegaland Togo (http://www.wipo.oapi.net).Gabon WT/TPR/S/86
Page 57
91. The Bangui Agreement (1977) established a single intellectual property rights regime which
is in force in each of the member countries.  The regime is detailed in the annexes which form an
integral part of the Agreement, setting out the scope of the rights, the administrative procedures for
their registration, where appropriate, the duration of protection and the relevant conditions and limits
thereto, for each area of intellectual property, patents, utility models, product or service marks,
industrial designs and models, trade names, appellations of origin and unfair competition, literary andartistic property.
92. AIPO acts as the national intellectual property office for each of its members and, in that
guise, administers and manages certificates of protection relating to patents and certificates of
additions, utility models, product or services marks, industrial designs and models, trade names and
appellations of origin.  This function also extends to the implementation of the provisions ofmultilateral conventions to which AIPO members are parties, notably the Lisbon Convention for the
Protection of Appellations of Origin and the Pate nt Cooperation Treaty administered by WIPO.  The
issue of an AIPO certificate automatically gives rise to valuable rights throughout the member States.
Literary and artistic rights are managed by national offices established by each member country.
93. The annexes to the Bangui Agreement (1977) also contain provisions on the defence of
intellectual property rights.  However, AIPO does not provide this defence, which is left to national
authorities, their police and judicial systems.
94. The regime for the protection of intellectual property established under the Bangui Agreement
(1977) displays considerable differences in relation to the obligation of WTO Members under the
TRIPS, the deadline for the application of which in developing countries such as Gabon was
1 January 2000.  Gabon participated in the revision of the Bangui Agreement to update its provisions
for the purpose of the application of TRIPS in its member countries.  The revised Bangui Agreementwas signed on 24 February 1999.
95. The entry into force of the revised Agreement is dependent on the deposit of instruments of
ratification by at least two thirds of the member States of the Bangui Agreement (1977),
i.e. 15 members.  Gabon ratified the revised Agreement in 14 August 2000, and Cameroon, Chad,
Côte d'Ivoire, Equatorial Guinea, Guinea, Mali and Senegal have also ratified the revised Agreement.In April 2001, the entry into force of the Agreement required ratification by a further three members
of AIPO.  It should be noted that certain members of AIPO are least-developed countries, which enjoy
longer transition periods under TRIPS than developing countries.
96. The revised Bangui Agreement (1999) extends the coverage of the regime on the protection
of intellectual property as well as the duration of its protection, where applicable, to align it with therelevant provisions of TRIPS.  The annexes to the revised Bangui Agreement (1999) also contain
provisions on the defence of intellectual property rights created thereunder, which are a matter for
national authorities.  The border measures set out in Article 51 of TRIPS, concerning the request for
suspension of release of imports by the holder of rights, are a matter for CACEU, but they have not so
far been the subject of any amendment of the Customs Code.
(b) Intellectual property rights under the Bangui Agreement (1977) and the revised Bangui
Agreement (1999)
Industrial intellectual property
97. Annex I to the Bangui Agreement (1997) concerns patents.  Its Title I provides that inventions
may be patented, provided that they are new, involve an inventive activity and have a potential
industrial application.  Patents may be granted for products or processes.  Computer programmes andWT/TPR/S/86 Trade Policy Review
Page 58
plant varieties are, however, excluded.  The duration of protection is ten years from the date of
deposition of the application, renewable for a period of five years, at most twice.  The principle of
national treatment is an integral part of Annex I of the Bangui Agreement and the revised Agreement.
98. The Bangui Agreement (1997) also provides th at utility models, trademarks of products or
services, industrial designs and models,  trade names and appellations of origin may be protected by
the AIPO.  This protection, like patents, is obtained by a procedure which begins with the submissionof an application, accompanied by supporting documents, including evidence of payment of charges
payable to AIPO.  The revised Agreement (1999) does not significantly change the procedures.
33  The
procedures for applications are as follows:
- For applicants resident in the territory of one of the member States, either to the
national AIPO liaison office (SNL), or directly to AIPO, or through an agent selectedin one of the member States;  and
- for applicants resident outside the territor ies of the member States, to AIPO, through
an agent selected in one of the member States.
34
99. The national liaison office (SNL) in Gabon is the Directorate-General of Industrial
Development in the Ministry of Trade and Industria l Development.  Under Article 9 of Annex III of
the Bangui Agreement, the formalities for registration of marks begins with deposition at the registry
of the civil court in the applicant's place of residence.
100. On receipt of the application by the Director -General of AIPO, the Organization opens the
proceedings, registration of the application and its consideration.  Any rejection of an application is
subject to appeal to the Higher Appeals Commission, whose decision is final.  Where the patent isgranted, the rights attached thereto remain in force on payment of annual fees.
101. The revised Bangui Agreement (1999) contains significant amendments to this regime of
protection of industrial property.  On the question of protection of plant varieties, which must be
subject to patents under Article 27 of TRIPS, Annex X of the Agreement establishes title to protection
called a certificate of plant breeding (certificat d'obtention végétale), with a period of protectionlasting 25 years.  The revised Bangui Agreement (1999) also provides protection for lay-out designs
(topographies) of integrated circuits, for a period of ten years.  It should also be noted that the periods
of protection for protection certificates that we re available under the Bangui Agreement (1977) have
been amended in the revised Agreement (1999) in order to align it with the relevant provisions of
TRIPS (Table III.5).
102. The revised Bangui Agreement (1999) also amended the provisions on contractual licences.
Title IV of Annex I of the Bangui Agreement (1977) states that a licence must automatically be issued
to the applicant after the expiry of a period of four years from the patent application, under one or
more of the following conditions:
- Where the industrial exploitation of the patent does not take place in one of the
member States;
- where the industrial exploitation of the patent does not satisfy demand for the product
on reasonable terms;
                                                     
33 The AIPO provides guidance to applicants on its website (http://www.wipo.oapi.net).
34 The list of approved agents is available on the AIPO website (http://www.wipo.oapi.net).Gabon WT/TPR/S/86
Page 59
Table III.5
Subjects and length of periods of protection under the Bangui Agreement (1 977)  and the revised Agreement (1999)
Agreement Period of protection
I. Bangui Agreement (1977)
Patents 10 years
Utility models 5 years
Trademarks of products or services 10 years, renewable every ten years
Industrial designs and models 5 years
Trade names and unfair competition 10 years, renewable every ten years
Appellations of origin n.a.
Literary and artistic property
Copyright Duration of author's life + 50 years
Films, radio and audiovisual programmes 50 years
Photos 25 years
II. Bangui Agreement, revised (1999)
Patents 20 years
Utility models 10 years
Trademarks of products or services 10 years, renewable every ten years
Industrial designs and models 5 years
Trade names 10 years, renewable every ten years
Geographical marks n.a.
Literary and artistic property and neighbouring rights
Copyright Duration of author's life + 70 years
Audiovisual works 70 years
Applied arts 25 years
Lay-out designs  (topographies) of integrated circuits 10 years
Protection of plant varieties 25 years
n.a. Not applicable.
Source: WTO  Secretariat.
- where the industrial exploitation of the patent is prevented or impeded by the
importation of the patented product35;  or
- where the patent owner refuses to grant licences on reasonable terms,
unless the patent owner justifies the absence of industrial exploitation (its importation not being
considered to be a valid justification).  Title VI further states that than an automatic licence may be
obtained for the exploitation of a patented invention of vital importance for national defence, public
health or the national economy.
103. The first two conditions and the last, together wi th other provisions, are retained in Title IV of
Annex I of the revised Bangui Agreement (199 9), which deals with non-voluntary licensing.
Nevertheless, there are strict limitations on applications for the grant of a non-voluntary licence, in the
civil court, which must inter alia  be accompanied by evidence that the applicant has endeavoured to
obtain from the patent owner a licence under contract on reasonable commercial terms and within a
reasonable period of time.  The award of a non-vol untary licence must include "fair" compensation to
the owner.
                                                     
35 This condition was deleted from the revised Agreement.WT/TPR/S/86 Trade Policy Review
Page 60
Literary and artistic property
104. Annex VII of the Bangui Agreement deals with copyright and the cultural heritage arising
from the creative activity of nationals of the member countries.   There is an exhaustive list of subjects
covered by copyright which essentially includes literary and artistic works:  cinema, theatre,
audiovisual and pictorial works, sculpture or music.  Protection of the work is for the life of its author
plus a further 50 years, and management of these rights is entrusted to a national copyright office.Performers' rights are not explicitly recognized.
105. The revised Agreement introduces important changes in the area of copyright.  The subjects
covered by copyright are extended from literary and artistic activity to scientific activity.  Thus,
computer programs, which were not subject to patents, nor literary and artistic property under the
Bangui Agreement (1977), are recognized as works, in accordance with Article 10 of TRIPS.Protection of the work is for the life of its author plus a further 70 years, and management of these
rights is entrusted to a national copyright office.  The revised Agreement explicitly recognizes the
rights of artists and performers, producers of gramophone records and radio broadcasting
(neighbouring rights).
106. Gabon instituted a national copyright protection regime in Law 1/87 of 29 July 1987, which
replaced the Law of 11 March 1957 on literary and artistic property.  This law recognizes the
ratification of the Berne Convention (1886) on the protection of literary and artistic works, as
amended in Paris (1971), under which Gabon grants the principle of national treatment to authors
from countries in the Union, other than Gabonese nationals, concerning works for which they are
protected under the Berne Convention.  Gabonese nationals enjoy the protection provided by
Law 1/87 and, in the member countries of the Uni on, the rights contained in the Berne Convention.
107. Law 1/87 recognizes the national agency for promotion of the arts and culture (Agence
nationale de promotion artistique et culturelle, ANPAC), which has rights of exploitation of folklore
and which has a monopoly of exploitation of Gabonese copyright, and the interests of various foreign
authors' societies under conventions or agreements concluded with them.  Law 1/97 thus invites
Gabonese authors to become members of ANPAC, declare the works that they seek to protect and
hand over management rights.  In return, authors may receive part of the dues collected in respect ofthe exploitation of the works by the users.  The implementation of these provisions has, however,
been hindered since 1997 by the suspension of ANPAC's activities as a result of poor management.
Its activities could be restarted in 2001 by the Gabonese authorities.
Protection against unfair competition
108. Title II of Annex V of the Bangui Agreemen t (1977) deals with protection against unfair
competition in the context of trade names.  Thus, the Annex prohibits the use of a false or misleading
description concerning the origin of a product or service, the identity of the producer, manufacturer or
seller, and any facts such as might cause confusion or deceive the consumer, and false claims made in
the course of trade.
109. Annex VIII of the revised Bangui Agreement (1999) deals with unfair competition in a
broader context than trade names, and in particular transposes the provisions of Part II, Section 7, of
TRIPS, concerning protection of undisclosed information.  Under paragraph 4 of Article 6, it is
considered to be an act of unfair competition to exploit in trade commercial data from tests or other
confidential data communicated to a competent aut hority in order to obtain permission to market
pharmaceutical products or chemical products for agriculture containing new chemical compounds.Gabon WT/TPR/S/86
Page 61
(c) Defence of intellectual property rights
110. Concerning patents, Title VII of Annex I provides for fines and prison terms for
counterfeiting, an offence consisting of "the ma nufacture of products or use of methods protected by
its patent" (Article 58).  The punishment is a fine of from CFAF 50,000 to 300,000, or F 500 to 3,000.
These penalties apply also to "those who knowingly receive, sell or offer for sale, or introduce into the
national territory of one of the member States, one or more counterfeit objects" (Article 59).However, no penalty may be imposed if, after the lapse of five years from the patent application, the
patent has not been exploited.  In the event of repeated offences, prison terms of up to six months are
laid down.  The penal measure concerned may only be applied by the competent public prosecutor
following a complaint by the injured party.
111. Patent owners (national or foreign) may, on the order of the President of the Civil Court,
proceed to identify and provide a detailed description, with or without seizure, of the alleged
counterfeit objects.  This order "shall be given on simple application and presentation of the patent"
(Article 66).  Objects recognized as counterfeit or equipment intended for their manufacture which
have been seized shall be destroyed or handed over to the patent owners.
112. In Gabon, several institutions are involved in protection of intellectual property rights:
- The Directorate-General of Industrial Development, in the Ministry of Trade and
Industrial Development, has a special section for this purpose;
- the Directorate-General of Customs and Indirect Taxes;
- the Judicial Administration when informed by the owner of a right of a breach of that
right;  and
- the economic police, also when informed.
The Gabonese authorities explain that the defence of copyright and neighbouring rights is hampered
by "the still timid role of the Customs and economic police" and the fact that ANPAC, created toexploit and defend such rights, is still not in operation.
113. Under the revised Bangui Agreement (1999), the offence of counterfeiting is defined in the
same terms as in the Bangui Agreement (1977).  However, the fines have been greatly increased, and
the offence is now punishable by a fine of CFAF one to three million, equivalent to F 10,000 to
30,000, which is a much more powerful disincentive.  The revised Agreement deletes the clause onnon-admissibility of the penalty in the event of non-exploitation of the patent after the lapse of five
years from the patent application.  More generally, the revised Agreement increases the fines in the
case of breach of the rights created by the Agreement, with the aim of increasing their dissuasive
effect (Table III.6).
114. On the question of  patents on processes, Article 66 of Annex I of the revised Bangui
Agreement (1999) contains the provision set out in Article 34 of TRIPS, which deals with the burden
of proof in judicial litigation between owners  of patents for processes for obtaining products and
those accused of breaching them.  Thus, "the judicial authorities are empowered to order the
defendant to prove that the process used to obtain an identical product is different from the patented
process in one of the following situations:
- The product obtained by the process is new;WT/TPR/S/86 Trade Policy Review
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Table III.6
Fines and prison terms under the Bangui Agreement (1977) and the revised Agreement (1999)
Agreement Fine
I. Bangui Agreement (1977)
Breach of patent rightsaFine of CFAF 30,000 to 50,000 and, on re-offending, prison term of 1 to
6 months
Breach of rights in utility modelsbFine of CFAF 30,000 to 180,000 and, on re-offending, prison term of 1 to6 months
Unlawful exploitation of registered marks CFAF 50,000 to 150,000 and/or prison term of 1 month to one year
Unlawful use of compulsory marks and prohibited signs CFAF 50,000 to 100,000 and/or prison term of 15 days to 6 months
Breach of rights in industrial designs and models CFAF 50,000 to 300,000 and, on re-offending, prison term of 1 to
6 months
Breach of rights in trade names CFAF 50,000 to 300,000 and/or prison term of 3 months to 1 year
Breach of rights in name of origin CFAF 50,000 to 300,000 and/or prison term of 3 months to 1 year
II.  Revised Bangui Agreement (1999)
Breach of patent rights CFAF 1,000,000 to 3,000,000 and, on re-offending, prison term of 1 to
6 months
Breach of rights in utility models CFAF 1,000,000 to 6,000,000 and, on re-offending, prison term of 1 to
6 months
Unlawful exploitation of registered marks CFAF 1,000,000 to 3,000,000 and/or prison term of 3 months to 2 years
Unlawful use of compulsory marks and prohibited signs CFAF 1,000,000 to 2,000,000 and/or prison term of 15 days to 6 months
Breach of rights in industrial designs and models CFAF 1,000,000 to 6,000,000 and, on re-offending, prison term of 1 to
6 months
Breach of rights in trade names CFAF 1,000,000 to 3,000,000 and/or prison term of 3 months to 2 years
Breach of rights in geographical descriptions CFAF 1,000,000 to 6,000,000 and/or prison term of 3 months to 1 year
Breach of rights in lay-out designs (topographies) of integrated
circuitsCFAF 1,000,000 to 6,000,000 and/or prison term up to 6 months
Breach of rights in plant varieties 1,000,000 to 3,000,000 CFA francs and/or prison term of 1 to 6 months
a No action for forgery of a patent is admissible if, after the lapse of a period of five years from the patent application, the  patent in question
has not been exploited.
b No action for forgery of a patent is admissible if, after the lapse of a period of three years its registration, the utility m odel in question has
not been exploited.
Source: WTO Secretariat.
- there is a strong probability that the identical product has been obtained by the
process and the owner of the patent has been unable despite reasonable efforts, todetermine in fact what process has been used."
(v) Competition policy
(a) Overview
115. Since the beginning of the economic reform in 1989, Gabon has made considerable
improvements in the conditions of competition in the domestic market.  This concerns in particular
the abolition of the former controlled prices and profit margins, liberalization of trade and measures to
privatize state enterprises or make them profitable.  The policy of competition in the domestic market
culminated in new legislation in Gabon in 1998 (Law 14/98).
36  This law establishes a regulatory
framework in this area and creates a set of administrative procedures to enforce the law.  However, ithas not yet been implemented pending adoption of the regulations for the purpose.
                                                     
36 It should be noted that a regulation adopted by  the CAEMC member countries concerns competition
policy at supranational level, in the framework of the internal market formed by the members
(Regulation No. 1/99/UEAC-CM-639).Gabon WT/TPR/S/86
Page 63
116. The objectives of the new law are:
- "To ensure freedom of prices and trade;
- prevent any anti-competitive practices;
- ensure transparency in commercial transactions;
- regulate economic concentration;
- prevent obstacles to free competition."
117. The law will be mainly administered by a Commission on Competition, a new independent
administrative authority, chaired by the Minister of  the Economy, Finance, Budget and Privatization.
(b) Principles of the competition regime
Freedom of prices and trade
118. Until 1989, Gabon practised administrative control of prices and trade margins of imported
goods and local production for various reasons, notably the effective monopoly enjoyed by State
enterprises and distributors of imported goods.  Law 29/63 had introduced price regulation,
Decree No. 428/PR of 1976 had fixed the prices of imported products, and fixing of their commercial
margins came in with Decree No. 696/PR of 1978.  The situation was reversed by Decree No. 541/PR
of 1989, which freed prices on all imported and domestic products, apart from 17 categories of
product designated as of prime necessity, of which 12 remain under administrative price controls
(Table III.7).  The overall margins on all the products were limited to 15 per cent byDecree No. 168/PR of 1994, apart from locally manufactured products.
119. Competition in the domestic market was also reinforced by the freedom of trade set out in
Law 15/89 and the abolition of quantitative restrict ions in 1996.  Chapter I of Law 14/98 consequently
sets out the general principle of freedom of prices and trade in the Gabonese market, including
imports and exports.  This freedom is nevertheless subject to reservations in the case of necessity.Thus, the Government has provided for regulation of prices of goods and services if, in the opinion of
the Commission on Competition, price competition is distorted, particularly in sectors where
monopolies have arisen.  The Government may also intervene to prevent excessive price rises in a
crisis situation or abnormal behaviour of the market or, conversely, intervene in imports to prevent
dumping (Section 2(vi)).
120. The Directorate-General of Prices is the administrative body within the Ministry of the
Economy, Finance, Budget and Privatization with responsibility for overseeing the implementation of
these provisions in the Gabonese market.
Transparency in commercial transactions
121. Chapter III of Law 14/98 sets out the general principle of transparency in commercial
transactions.  This transparency concerns the information provided to the consumer on the price of the
good or service, any limitations on contractual liability and, if applicable, the particular conditions of
sale.  An invoice is compulsory for any final transa ction.  An informative labelling is compulsory for
all perishable goods, cosmetic or pharmaceutical product sold in the Gabonese market, and must
provide, in the French language, information on the origin and date by which the product must beconsumed or used.WT/TPR/S/86 Trade Policy Review
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Table III.7
Products, goods and services under administrative price controls, 2001
Category Administrative control measure
Oil Committee on monitoring of prices of oil products.
School text books Decree No. 439 of 22.5.95 regulating the prices of products of prime necessity.
Water and electricity Agreement between SEEG – Gabonese STATE.
Bread, 200 gram loaf Decree No. 001/MPEAT of 24.2.94 fixing the price of bread.
Pharmaceutical PHARMAGABON tariffs (SEMPEX Agreement between pharmacists –  Gabonese State).
AGROGABON products Decision No. 001119/MFEBPP of 12.11.98 in application of Decree No. .00354/MEFBP/DGCDI of
24.8.98 on suspension of VAT.
ANDZA water Decision No. 1124/MEFBPP/DGPEE of 12.11.98 in application of Decree No. 00354/MEFBP/DGCDI
of 24.8.98 on suspension of VAT.
Optical glasses Provided in Decree No. 0541/PR du 24.5.95.  But the prices have not so far been fixed or controlled.
Medical and surgical  equipment Provided in Decree No.  0541/PR du 24.5.95.  But the prices have not so far been fixed or controlled.
Local beer This product is being monitored for prices fixed and recommended by the manufacturers themselves,
accordin g to them, to prevent runaway prices in the market.  They are price caps.  Decisions No. 001176
and No. 1182/MEFBPP/SG/DGPEE of 13.7.00.
SUCAF sugar Decree No. 242/MEFBP/DGPEE of 15.9.98 to adjust the sales  price of white lump sugar.
Transport Sectoral agreements concluded with the State, but not up to now controlled by the DGPEE.
Source: Gabonese authorities.
122. Producers, importers or distributors are required to declare their stocks periodically and on
request.  These declarations must show the average quantities produced or ordered, emergency stocks,
limited to 20 per cent of the average quantity.  They must also notify their price lists and conditions ofsales, and any rebate or discount.
123. The conditions of application of these measures are set out in a decree "fixing the conditions
of application of the rules relating to individual restrictive practices on competition and transparency
in commercial transactions".  The Directorate-General of Prices is the administrative department
responsible for ensuring compliance with these measures.
Anti-competitive practices
124. Section I of Chapter II of Law 14/98 defi nes unlawful understandings and abuses of
dominance as collective  anti-competitive practices.  Unlawful understandings are deemed to be
actions in concert, express or tacit agreements or coalitions, in particular those intended to have the
effect of:  limiting access to the market by other economic operators and the free play of competition;distorting the share of markets, distribution circuits or tainting sources of supply;  encouraging higher
or lower prices;  impeding production, investment or technical progress.  Abuse of a dominant
position is considered to be where an operator occupies a monopoly position or one of economic
concentration, and engages in refusing to sell, sales subject to conditions, discriminatory conditions of
sale or abusively breaking off commercial relations.
125. Collective anti-competitive practices are the subject of a decree "fixing the conditions of
application of rules relating to collective anti-competitive practices".  The law excludesunderstandings of minor significance.   Automatically deemed to be of minor significance are those
between producers of goods and services and their distributors when (a) they do not account for more
than 5 per cent of the domestic market;  or (b) the turnover of the enterprises involved does not exceed
a threshold of CFAF 150 million.
126. Section II of Chapter II of Law 14/98 deals with individual  anti-competitive practices or
restrictive competition practices.  These are, in particular, sales at a loss, refusal to sell, sales subjectGabon WT/TPR/S/86
Page 65
to conditions, pyramid selling, discriminatory co nditions of sale, minimum prices, dumping or quasi
commercial practices (for example, sale on the public highway).  These individual anti-competitive
practices are the subject of a decree "fixing the conditions of application of rules relating to individual
competition restrictive practices and transparency and commercial transactions".
Economic concentrations
127. Economic concentration is defined in Chapter IV of Law 14/98 as an operation intended to
allow one or more enterprises to exercise a decisive influence over one or more other enterprises.  The
threshold of such a concentration is set at 25 per cent of sales, purchases or transactions in the
domestic market for the product or service concerned.  Any enterprise involved in such a
concentration has the obligation to notify the Minister of the Economy, Finance, Budget and
Privatization, either when the operation is being planned, or within two months following itsfinalization.  If, within two months of notification,  no reply has been received from the Minister, the
operation is deemed to be accepted.  In the absence of a notification, the Minister may initiate an
investigation.
128. The Minister of the Economy, Finance, Budget and Privatization, following the opinion of the
Commission on Competition (see below), may require the enterprises concerned in a concentrationoperation to cease, modify or complement their operation by taking measures to ensure adequate
competition.  The Minister's decisions must be published.
(c) The Commission on Competition
129. The Commission on Competition, once established, will have the task of investigating,
noting, preventing and prosecuting anti-competitive practices as defined by Law 14/98 with the
exception of concentration operations.
37  To this end, the Commission may of its own initiative or on
application by a plaintiff act in the prevention of unlawful understandings and abuses of a dominantposition by enterprises, consumers' associations (duly recognized by the Ministry of the Interior),
trade or employers' associations and local authorities.
130. The Commission may, in carrying out its functions:
- Order the operators concerned to stop their anti-competitive practices within a
specific time-limit, or impose particular conditions on them in exercising theiractivities;
- impose fines on the enterprises concerned;  or
- transmit the files to the prosecutor's office with a view to instigating criminal
proceedings.
131. The Commission will also be responsible for giving its opinion on draft legislation and
regulations which might have an influence on competition on the Gabonese market.  It may also be
consulted by government bodies in the context of privatization (in particular, telecommunications).
132. The Commission will be assisted by a Secretariat, headed by a Secretary-General, which will
provide technical and administrative support to the meetings of the Commission.  The Commission's
decisions will be public but the archives will be confidential.
                                                     
37 Draft decree on the "Organization, attributions and functioning of the Commission on Competition",
supplied by the Gabonese authorities.WT/TPR/S/86 Trade Policy Review
Page 66
(vi) Government procurement
(a) Overview
133. The whole set of laws, regulations, procedures and practices for government procurement is
of great economic significance in Gabon because of the major role of the State in economic life
(government consumption represents 15 per cent of GDP), and the priority given by the Executive to
controlling government expenditure in the context of the current structural reforms.38  However, the
Government of Gabon intends to withdraw from economic activity in many sectors through the
privatization or liquidation of State enterprises, and thus appreciably reduce the scope of the
regulations on government procurement.
134. The policy on government procurement on behalf of the Gabonese State, local authorities,
offices and public institutions in Gabon is the subject of Decree No. 416/PR of 18 March 1985(known as the "Government Procur ement Code").  Gabon is not a member of the WTO Plurilateral
Agreement on Government Procurement, neither is it an observer, although it intends to become one.
A new Code is currently under consideration by the Gabonese authorities.
135. The Government Procurement Code applies to all government procurement where the value
exceeds certain thresholds laid down in the C ode:  CFAF 20 million for the State budget and
CFAF 5 million for local authority budgets.  Under Article 4 of the Code, it concerns "the purchase,
performance or supply of goods, works, services and intellectual services by natural or legal persons
whose activity is governed by Gabonese law or any other legislation".  However, the Gabonese
authorities admit that the threshold is not strictly obs erved, but intend to ensure that it is in the context
of the current structural reforms.
39
(b) Form of procurement, tendering  procedure and award of contract
Form of procurement136. Article 6 of the Code defines procurement as "written administrative contracts".  They are
subject to notification established and signed by the contracting authority.  The constituent documents
must contain information in support of the cost and, in particular, the purpose of the procurement, the
amount, the timetable for performance and conditions for receipt or delivery of the goods or services.
Procurement procedure137. Section I of the second chapter of the Code sets out the general arrangements for the
procurement procedure, which are:
- Requirement of open competition and observance of the Law for the promotion of
small and medium-sized enterprises;
- publication of invitations to tender, public invitation for applications or collective
consultation;
- compulsory information to be provided by bidders;
                                                     
38 Government of Gabon, "Memorandum of Economic and Financial Policies of the Government of
Gabon", 12 September 2000, available on:  http://www.imf.org.
39 Government of Gabon, "Memorandum of Economic and Financial Policies of the Government of
Gabon", 12 September 2000, available on:  http://www.imf.org.Gabon WT/TPR/S/86
Page 67
- criteria for admission or exclusion of bidders;
- preferential right of award to companies registered under Gabonese law;
- information of the fiscal administrations;  and
- establishment of submission by signature of the bidder.
138. The Government Procurement Code gives preference to the award of contracts to Gabonese
small and medium-sized enterprises (SME) designated as such under Law 1/81.40  This law reserves
government procurement contracts under CFAF 50 million exclusively to SME, and provides for thesplitting of government procurement by the administration, parastatal establishments and local
authorities so as to make them accessible to Gabonese SME.  Law 1/81 also provides for assistance in
supporting the activity to which the government procurement relates, such as reduction in the
guarantee, tools and equipment advances, and start-up advances (30 per cent).  Gabonese SME may
subcontract contracts awarded to other enterprises, including those owned by foreigners, but subject to
certain conditions.
139. In general, Article 18 of the Government Procurement Code sets out the policy of the
Gabonese authorities concerning preference to Gabonese enterprises:
"When the procurement relates, wholly or in part, to services or supplies which can
be performed or supplied  by or through companies registered under Gabonese law,
the contracting administrations must, prior to the invitation to competitive tendering,
define the works, supplies or services which, for equal prices or bids, are awarded  inpreference to all other bidders to companies registered under Gabonese law which
engage in activities in the territory of Gabon.
Subject, where applicable, to provisions under international treaties or agreements, a
right of preference is attributed, for an equal price or equivalent bid, to the bid or
offer submitted by a company registered under Gabonese law and exercising aneconomic activity in the territory of Gabon and, more particularly, by a Gabonese
enterprise approved as a small or medium-sized enterprise or by an enterprise
subcontracting to Gabonese small and medium-sized enterprises or encouraging the
maximum of employment of Gabonese labour."
Invitations to tender140. For the purposes of the Government Procurement Code:
- Open bidding is where all interested suppliers may submit tenders;
- selective bidding involves a prior public invitation for applications with a view to
pre-qualification of suppliers
41;  and
- competitive bidding is where the entity approaches suppliers individually.
It is also possible to negotiate contracts without prior open competition under certain conditions.
                                                     
40 Their capital must be 51 per cent "Gabonese", or they must be managed by Gabonese nationals and
their turnover must not exceed a threshold of CFAF 500 million.
41 This procedure is applied to procurement reserved to SMEs.WT/TPR/S/86 Trade Policy Review
Page 68
141. Under Article 16 of the Code, the envelopes containing the tenders submitted by the
candidates are opened by a tendering panel in closed session.  A confidential report states "the ranking
of applicants based on price, timetable for performance, technical value of the services, and the
professional, moral and financial guarantees of the applicants" and "recommending the bid which
appears to be the best".  The other candidates are informed of the rejection of their bids without any
requirement to give reasons.
142. The approval of contracts a posteriori  occurs at various levels of responsibility based on the
total amount of the award.  Awards for studies or building construction works or civil engineering
works for amounts less than CFAF 200 million must be approved by the signature of the successful
bidder and the Minister of Public Works, Equipment and Construction, and bear the endorsements of
the contracting authority, the Director-General of Financial Control, the Director-General of theBudget, the Commissioner General for Planning and the relevant beneficiary Ministry.  Awards for
amounts between CFAF 200 and 1,000 million must be approved by the Head of the Government by
delegation from the Head of State, while those for amounts greater than CFAF 1,000 million must be
approved by the Head of State in person.