RESTRICTED
WORLD TRADE WT/ACC/SYC/7
11April 1997
ORGANIZATION(97-1534)
Original: English
ACCESSION OFTHE REPUBLIC OFSEYCHELLES
Additional Questions andReplies totheMemorandum
ontheForeign Trade Régime
TheMinistry ofFinance andCommunications oftheGovernment oftheRepublic ofSeychelles
hassubmitted replies toquestions raised after themeeting oftheWorking Party held on
20February 1997, withtherequest thattheybecirculated tothemembers oftheWorking Party. The
questions andreplies arereproduced hereunder.
_______________WT/ACC/SYC/7
Pageii
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies
(ii) Pricing policy 1 1-2
(iii) Economic development plans 2 3
(iv) Privatization 3 4
(v) Sectoral priorities 3 5
(c) Foreign exchange andpayments system andcontrol régime 4 6-13
(d) Foreign anddomestic investment policies 10 14-15
3. Foreign Trade inGoods andServices
(i) Balance ofPayments 11 16
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristic ofnational tariff 11 17-18
(c) Tariff quotas, tariff exemptions 12 19-20
(d) Other duties andcharges 12 21-22
(e) Quantitative import restrictions 15 23
(f) Import licensing procedures 15 24-26
(g) Other border measures 17 27
(h) Customs valuation 18 28
(i) Other customs formalities 18 29
(j) Pre-shipment inspection 18 30
(k) Application ofinternal taxes onimports 19 31
(l) Rules oforigin 19 32
(m-o) Anti-dumping, countervailing andsafeguards 19 33
2. Export Regulation
(a) Registration requirements forengaging inexporting 20 34
(b) Customs tariff nomenclature 20 35
(c) Quantitative export restrictions 21 36
(d) Export licensing procedures 21 37
(e) Other measures 22 38
(f) Export financing, subsidy andpromotion policies 22 39WT/ACC/SYC/7
Pageiii
Page
No.Question
No.
3. Internal Policies Affecting Trade inGoods
(a) Industrial policy, including subsidy policies 23 40
(b) Standards andsanitary andphytosanitary measures 23 41-42
(e) State-trading practices 24 43
(k) Trade agreements leading tocountry-specific quota allocation 25 44
(l) Government procurement 25 45-46
4. Policies Affecting Trade inAgricultural Products 26 47-48
5. Policies Affecting Foreign Trade inOther Sectors
(a) Textiles régime 27 49
(b) Policies affecting foreign trade inother major sectors 27 50-51
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 28 52-53
(c) Membership ofinternational intellectual property conventions 28 54
(e) Feesandtaxes 28 55
2. Substantive Standards ofProtection 29 56-57
(a) Copyright andrelated rights 30 58
(b) Trademarks 31 59
(e) Patents 31 60
4. Enforcement 31 61
(e) Criminal procedures 32 62
6. Statistical dataonapplications forandgrants ofintellectual
property rights, aswellasanystatistical dataontheir
enforcement32 63
VI. TRADE-RELATED SERVICES REGIME
1. General 33 64-65
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade
inGoods andTrade inServices
Regional Agreements 33 66WT/ACC/SYC/7
Pageiv
Page
No.Question
No.
2. Economic Integration, Customs Union andFreeTrade Area
Agreements34 67
Annex 1TheSeychelles 'Foreign Exchange Régime 35 -
_______________WT/ACC/SYC/7
Page1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies
(ii) Pricing policy
Question 1.
Theuseofpricecontrolsonimportedproducts,butnotondomestically-producedproducts,appears
toviolate thenational treatment principles applicable to“requirements affecting theinternal sale,
offering forsaleofproducts ”provided byparagraph 1ofGATT Article III.
Paragraph 9ofGATT Article IIIrecognises thatinternal maximum price control measures, even
though conforming totheother provisions ofthisArticle, canhaveeffects prejudicial totheinterests
ofmembers supplying imported products. Paragraph 9requires members applying suchmeasures
totakeintoaccount theinterests ofexporting members withaview toavoiding tothefullest
practicable extent suchprejudicial effects.
According toaresponse toaquestion from theUSonWT/ACC/SYC/3, theGovernments of
Seychellesiswillingtotakeallnecessarystepstobringthispolicyandmoregenerallyitscommercial
statutes inlinewiththerequirements ofWTO Agreements.
What aretheSeychelles 'plans forthemodification ofitsprice control system tobring itinto
conformity withnational treatment requirements? HowdoesSeychelles intend totakeintoaccount
theprejudicial effects ofitsprice controls onexporting members? DoesSeychelles haveaschedule
formaking these changes?
According toaresponse toaquestion from theUS,theSeychelles states thatithasnointention
toapply price controls toimported anddomestic services. IstheSeychelles prepared tocommit
tothenon-application ofprice controls toservices?
Answer:
TheSeychelles 'plans forthemodification ofitsprice control system willbeoutlined inthe
“Flexibility Paper ”thattheSeychelles Government undertakes tosubmit shortly totheWTO Members.
Regarding theprejudicial effects oftheprice control system onexporting members, itisimportant
tonotethatthissystem isneutral asfarasforeign exporters areconcerned because theretail mark-up
isbased onthec.i.f.priceandthatthereisnodiscrimination among existing andprospective exporting
countries.
Asforthenon-application ofprice control toservices, theSeychelles Government isready
tomake commitments inthissense.
Question 2.
Does theSeychelles intend toapply itslawsandregulations relating toprice control onanational
treatment basis? Atthemoment, local goods andservices arenotsubject tosuchcontrols.WT/ACC/SYC/7
Page2
Answer:
Itisnotonlylocalgoods andservices which arenotsubject topricecontrols, imported services
arealsonotsubject toprice controls.
Theprice control onimported goods isbeing maintained simply because there arenoexisting
alternatives todealwiththeextraordinary market situation prevailing inSeychelles. Theparticularity
andthesmallness oftheSeychelles market limiteconomic scales andcompetition. Consequently, there
isacrucial needtoprotect those withalowpurchasing power from being overcharged.
Theeventual enactment ofapieceoflegislation toprotect consumers 'rights andinterests should
enable theGovernment tobring thepricecontrol system inlinewiththerequirements ofGATT 1994.
However, theSeychelles needs some flexibility, thatistosay,atransitional period tocomply fully
withtheWTO requirements inthisfield.
(iii) Economic development plans
Question 3.
Please describe theexpected government capital spending programme provided bythePublic
Sector Investment Programme for1995 -1997.
Answer:
The1995draftofthePSIPestimated thefunds available fortheimplementation ofpublic sector
capital projects inthree ways:
(a) thetarget proposed inthe1995 budget projected over 3years gave afirstestimate of
SR125million X3=SR475million;
(b) assumptions about thecapability oftheSeychelles economy tosaveandtoinvest leadtoasecond
estimation: If20percentofaGDP ofSR2.5billion issaved andinvested every yeartotal
investment would come toSR500million andhalforlesscould beattributed tothepublic
sector i.e.SR200-250 peryear orSR600-750million forthe3yearperiod;
(c) thetotalgross domestic fixedcapital formation achieved annually between 1988and1993points
tothesameas(b)above: a“normal ”ability oftheentire economy (public andprivate) toinvest
about SR500million peryear(1988 -1993: 376,494,466,450,509,774).
The1995-97 PSIP proposed asaworking planhypothesis SR200million peryearor
SR600million forthe3yearperiod. Oneofthevirtues ofthisfigure wasthatitallowed allprojects
withforeign grants, andallprojects thathavealready started, tocontinue. They were estimated to
costSR537million.
The3yearbudget ofSR600million maybetoohigh. Itwillhavesignificant internal and
external borrowing. TheAfrican Development Bank, themostsignificant provider offoreign loans
totheSeychelles iscurrently charging 8percent andeffective ratesareoften significantly higher.
Many projects involve counterpart funds andonce completed engage thegovernment inrecurrent
expenditure.WT/ACC/SYC/7
Page3
The1995draft, afterexamining mostsectors where public sector capital projects aregenerated,
added uptheproposals ofthevarious ministries anddepartments intowhat wascalled thelonglist
ofprojects. Itamounted toSR1.9billion outofwhich SR1.4billion would bespent during the
1995-1997 period according tocertain assumptions.
Theprojects which havealready started (asof1995) costSR457million during the1995-97
period projects thathavesecured grants amounted toSR105million. Together, continuing projects
andprojects withgrants, amounted toSR537million.
(iv) Privatization
Question 4.
State-owned enterprises arelisted inQuestion 2ofWT/ACC/SYC/5. Which ofthese doesthe
Government intend toprivatize under itsprivatization programme? What isthetimetable for
this?
Answer:
TheState-owned enterprises thattheGovernment intends toprivatize totally orpartially under
itsprivatization programme are:Compagnie Seychelloise dePromotion Hotelière (COSPROH), Eau
deValRich(PUC) andSeychelles International Mercantile Banking Corporation Ltd(SIMBC).
(v) Sectorial priorities
Question 5.
According totheMemorandum, thegovernment hasintensified efforts torevive theagricultural
sector. TheMinistry ofAgriculture andMarine Resources isinvesting heavily ininfrastructure
aspartofitsefforts tobetter assist farmers inincreasing theagricultural output tomeet the
growing demand andcutdown onimport ofproducts which canbegrown locally.
Please identify theagricultural products which theGovernment hasselected forintensified efforts.
Please describe fully thenature andvalue oftheinfrastructure investments being made bythe
Ministry ofAgriculture andMarine Resources.
Answer:
Infact,nospecific agricultural products aretargeted bytheGovernment initsefforts tohelp
farmers inincreasing theagricultural output. Regarding theinfrastructure investments, theMinistry
ofAgriculture andMarine Resources invests mainly inconstruction ofroads, irrigation systems,
dissemination ofnewtechnologies, agricultural equipment etc.Projects components andtotalcosts
forthe1990 -1996 period maybesummarised asfollows:
- Income generating projects sponsored byInternational Fund forAgricultural Development -
1992 -1996:
- input storage building,
- rural markets,WT/ACC/SYC/7
Page4
- access roads,
- laboratory equipments,
- training,
- income generating activities,
Total costSR7,8million;
- Small scale irrigation projects sponsored byEuropean Union (1991 -1995):
- irrigation facilities,
- drainage facilities onpraslin,
- machinery andequipments,
- research training,
- livestock development,
Total costs SR19million;
- Improvement tovegetable production sponsored byFAO (1993 -1996):
- research technology development,
- control environment production;
- Integrated agricultural development projects sponsored byAfrican Development Bank (ADB)
-(1995 -1996)
Total costSR41million
uptodateamount spent SR2,85million
- drainage onMahe,
- irrigation facilities,
- access roads,
- credit facilities,
- cropdevelopment:
- Farmers Training Centre (FTC)
- plant quarantine
- training
- equipment
- animal quarantine,
(c) Foreign exchange andpayments system andcontrol régime
Question 6.
Weareconcerned thatthenewsystem offoreign exchange controls intheSeychelles stilldoes
notconform totheprovisions ofparagraph 4ofGATT Article XV,which provides that“members
shall not,byexchange action, frustrate theintent oftheprovisions oftheAgreement ”.The
requirement thatthecommercial banks surrender 30percent oftheir foreign exchange earningsWT/ACC/SYC/7
Page5
totheCentral Bank andallocate 20percent oftheir earnings tothe“frozen ”pipeline appears
tobeameasure creating aquantitative restriction ontheoverall levelofimported products.
Thedescription ofthenewforeign exchange regime provided bytheresponse toaquestion from
theUSisabitunclear. What ismeant bythemaximum thatforeign exchange earners mayget
back from commercial banks onforeign currency soldis20percent? “Does thismean that
exporters forfeit totheCentral Bank 80percentoftheproceeds theyreceive onsales? Please
describe indetail theoperation ofthe1997 foreign exchange scheme, particularly withrespect
toanyinconsistencies withWTO requirements. HastheIMFreviewed thenewforeign exchange
regime? What were theIMFcomments about it?
Wenoteintheresponse toaquestion from theUSthattheoutstanding balance intheforeign
exchange pipeline, asof31December 1996, wasSR300million. When doestheSeychelles expect
toclear the“frozen ”pipeline?
Answer:
Itimplies thattheCentral Bank expects commercial banks tosellonlyuptotheequivalent
of20percentofearnings surrendered bymajor foreign exchange earners tothose earners, notably
those thatgenerate SR200,000 andoverpermonth. Itdoesnotmean thatthese foreign exchange
earners forfeit 80percentoftheirforeign exchange earnings totheCentral Bank. Itshould benoted
alsothatwhilst invirtually allcases banks payuptothemaximum 20percent, banks areunder no
obligation tomeetthe20percent.
TheIMFhasnotyetreviewed thenewforeign exchange regime andconsequently hasnotyet
commented onthenewmeasures. TheSeychelles authorities donotknow when thefrozen pipeline
willbetotally cleared because thatdepends onaseries offactors which isbeyond theGovernment
control.
Question 7.
Under thenewforeign exchange scheme, doestheSeychelles intend tocontinue controlling foreign
exchange through asystem ofadministrative allocations? Intheresponse toaquestion from the
US,commercial banks arerequired toclassify payments according topriority/category, inorder
toreceive funds from theCentral bank forpayment. Please identify eachpriority andcategory.
What criteria doestheCentral bank useindetermining forwhich payments itwillprovide funds
tothecommercial banks? IstheCentral Bank controlling theamounts andtypes ofimports into
theSeychelles bydelaying theprovision offoreign exchange tocommercial banks forcertain
payments?
Answer:
TheSeychelles Government hasnointention tocontinue controlling foreign exchange through
administrative allocations given thatdevelopment ofthepipeline scheme haveshown thattheobjectives
were notrealised. Itshould benoted thatcommercial banks donotreceive funds from theCentral
bankofSeychelles tomeetpayments classified according topriority/category because these funds are
already inthehands ofthose banks. Infact,theyreceive onlyinstructions from theCentral Bank
outlining themanner foreign exchange generated bytheSeychelles economy should beusedinorderWT/ACC/SYC/7
Page6
tocopewiththetemporary shortage offoreign exchange andtheparallel market. Since 1January 1997,
theforeign currency receipts entering theofficial system aretemporarily allocated asfollows:
- 50percenttoberetained bybanks forcommercial payments;
- 20percenttoclear thefrozen pipeline; and
- 30percenttobesurrendered totheCentral Bank foressential payments.
The50percentforeign exchange earnings retained bycommercial banks istobeallocated
totheircustomers according tothepriority listing detailed below:
- foodandessential goods, including tourism related foodanddrinks butexcluding monopoly
goods andnon-essential foodstuff;
- goods imported bylicensed manufacturers, including goods usedinthemanufacturing process;
- allspare parts;
- building materials, tools andother goods required intheconstruction industry;
- plant andequipment usedforcommercial andinvestment purposes, including domestic and
office appliances;
- imports usedformaintaining services suchastelecommunications, utilities, civilaviation and
airlines;
- goods thatwillgenerate extra revenue, imported bybusinesses directly related tothetourism
industry oranyexport industry;
- allrelated educational andmedical expenses;
- others.
Please notethattheCentral Bank hasnomaterial means tocontrol theamounts andtypes of
imports because thecommercial banks arethecornerstone ofthistemporary system.
Question 8.
Please provide adetailed written report describing theSeychelles 'foreign exchange regime. This
report should include, foreachofthepastthree years, theabsolute amounts offoreign exchange
allocated toeach product andcategory inthepipeline, amounts allocated totheSeychelles
Marketing Board forpurchases ofessential goods, andamounts leftover fordiscretionary
purchases. Foreachimported product orcategory, there should beacomparison oftheexchange
rates thatwere applicable tothepurchase offoreign currency within theallocated category and
topurchases fortheproducts through thediscretionary funds. Please describe themethod used
todetermine theprice forsales offoreign exchange from thediscretionary fund.
Answer:WT/ACC/SYC/7
Page7
Please refertoAnnex 1fortheresponse tothisquestion.
Question 9.
Wehavereceived reports thatforeign investors often have difficulty obtaining access toforeign
exchange. Some businessmen havecomplained thatdelays of35weeks arenotuncommon and
2-year delays arenotunheard of.
Please provide adetailed description oftheeligibility requirements forimporters seeking access
totheforeign exchange andtheprocedures thatneedtobefollowed toobtain theexchange, both
foraccess tothepipeline categories andtothediscretionary funds. Please describe fully the
mechanism usedbytheSeychelles toensure thatforeign exchange claims areapproved promptly.
Answer:
Witheffect from1January 1997, thepipeline scheme wasfrozen. Thisbasically implied that
nonewdeposits would beaccepted intothescheme, andthatallexisting deposits, except forforward
payments, which would bewithdrawn andtransferred tocommercial banks, would bekeptinaspecial
account attheCentral Bank.
Concessions weremade forcustomers whohadnotplaced theirrupee deposits withcommercial
banks forgoods thathadbeenreceived prior to15December 1996. Deposits ofthisnature were
accepted intothefrozen pipeline scheme. However, requests forforeign exchange from customers
whohadnotdeposited funds forgoods received after15December 1996 would havetobemetfrom
thebank’sretention offoreign inflows.
Therevision ofthescheme wasaccompanied byachange intheweekly allocation offoreign
currency receipts entering theofficial system. Therevised allocation isasfollows:
- 50percenttoberetained bybanks forcommercial payments;
- 20percenttoclear thefrozen pipeline; and
- 30percenttobesurrendered totheCentral Bank foressential payments.
The50percentforeign exchange earnings retained bycommercial banks istobeallocated
totheircustomers according tothepriority listing detailed below:
- foodandessential goods, including tourism related foodanddrinks butexcluding monopoly
goods andnon-essential foodstuff;
- goods imported bylicensed manufacturers, including goods usedinthemanufacturing process;
- allspare parts;
- building materials, tools andother goods required intheconstruction industry;
- plant andequipment usedforcommercial andinvestment purposes, including domestic and
office appliances;WT/ACC/SYC/7
Page8
- imports usedformaintaining services suchastelecommunications, utilities, civilaviation and
airlines;
- goods thatwillgenerate extra revenue, imported bybusinesses directly related tothetourism
industry oranyexport industry;
- allrelated educational andmedical expenses;
- others.
Thesell-back of25percenttoforeign exchange earners channelling theirreceipts through
thebanking system wasreduced to20percent,andstreamlined toinclude onlymajor earners offoreign
exchange.Inconsultationwiththecommercialbanks,arevisedlistingofmajorforeignexchangeearners
wasprepared foreachbank, toensure totalcompliance withthenewarrangement.
Twenty percentofweekly foreign exchange earnings wasallocated toclearthefrozen pipeline.
Thiswasrevised suchthattheprevious pipeline categories ‘B’to‘F’would bemerged intoonestream,
andpipeline ‘G’retained asaseparate stream. Disbursement would bemade intheratio17percent
totheamalgamated stream ofpipeline ‘B’to‘F’and3percenttopipeline ‘G’.Itwasalsoagreed
withthecommercial banks thattheformer pipeline ‘H’would befunded fromthebanks ’discretionary
retention.
Thepayment limit forthefrozen pipeline wasreduced toSR250,000 perclient perweek.
Furthermore, theremittance ofdividends, transfer ofmanagement feesandproceeds ofsaleofassets
could beadded tothefrozen pipeline category ‘G’after1January 1997.
The30percentsurrendered totheCentral Bank would beutilised tofundthefollowing
payments:
- imports ofessential goods through theSeychelles Marketing Board;
- disbursement ofgovernment public debtcommitments;
- essential obligations relating totheMinistries ofHealth; Education; Tourism; Foreign Affairs,
Planning andEnvironment; Agriculture; andtheDepartment ofInternal Affairs;
- emergency payments inrespect ofother essential public services.
Question 10.
TheCentral bank ofSeychelles charges acommission of0.125 percentonpurchases and
0.975 percentonsales ofPounds Sterling, USDollars andFrench Francs. GATT Article VIII
limits thefeesandcharges inconnection withimportation andexportation, including exchange
control, totheapproximate costofservices rendered.
Please explain whytheCentral Bank ischarging different commission rates forthepurchase and
saleofforeign currency. What stepistheCentral bank taking tolimitthese feestotheapproximate
costofservices rendered?WT/ACC/SYC/7
Page9
Answer:
Itisveryimportant tonotethattheCentral Bank ofSeychelles doesnotbuyorsellforeign
currency from ortothegeneral public. Inpractice, itbuysorsellsforeign currency from ortothe
commercial banks. TheCentral Bank ischarging different commission ratesforthepurchase andsale
offoreign currency withaviewtomaximizing thepurchase andreducing thesaleofforeign currency.
Please notethattheCentral Bank iscontemplating toabolish thisdifference andadopt thesame rate
ofcommission forthepurchase andthesaleofforeign currency.
Question 11.
Theprohibition, applicable toallnon-residents andnon-Seychellois persons, onthefunding of
accounts inSeychelles rupees, except inexceptional circumstances, appears toviolate thenational
treatment provisions oftheTRIMs Agreement.
What istherationale ofthisprohibition andwhyisitonly applicable tonon-residents and
non-Seychellois persons?
Answer:
Asindicated earlier, theshortage offoreign exchange thatSeychelles isexperiencing during
these lastyears hascreated aflourishing parallel market. Infact,themainpurpose ofthisprohibition
istoneutralise themain sources ofsupply ofthatparallel market. Please notethatforeign investors
operating inSeychelles canopenandfundbankaccounts inSeychelles rupees without anyrestrictions.
Question 12.
AccordingtotheMemorandum,residentsmayexportgoodswithoutanyexchangecontrolformality
toanycountry. There arenoregulations governing repatriation ofexport proceeds.
Please describe thesystem ofexchange control formalities applicable totheexportation ofgoods
bynon-residents andnon-Seychellois persons.
Answer:
Thereisnospecificsystemofexchangecontrolformalitiesapplicabletothiscategoryofpersons.
However, non-residents andnon-Seychellois persons whoexport goods through acompany incorporated
inSeychelles orabranch ofaforeign company registered inSeychelles aresubject tothesametreatment
asresidents.
Question 13.
CanSeychelles confirm thattherupee isconvertible oncurrent account, thattheforeign exchange
pipeline system ofallocating foreign exchange forthepurchase ofspecified products hasbeen
abolished andthatthere isnointention ofreintroducing it,orother foreign exchange policies
related toparticular products?
Answer:WT/ACC/SYC/7
Page10
Thecurrent account isnowfullyconvertible following theremoval oftheembargo onthree
items ofthecurrent account namely Management fees,Dividends andsalesofassets.
Since 1January 1997 thepipeline hasbeenabolished. Consequently, commercial banks can
nowuse50percentoftheirearnings topayforgoods imported asfromJanuary 1997. However, they
stillhavetoallocate 20percentoftheirearnings toclearthe"frozen" pipeline regarding goods which
haveentered thecountry before January 1997. Once thatbacklog iscleared, banks willmake fulluse
of70percentoftheirearnings. Theremaining 30percentoftheirearnings goestothecentral bank
ofSeychelles forpayments ofessential goods andservices plusotherGovernment commitments, notably
debtservice obligations.
TheGovernment doesnotintend toreintroduce thepipeline scheme. Asforother foreign
exchange policies, there istheForeign Exchange Earnings (Regulations) Actwhich came intoeffect
onJanuary 1997. ThisActrequires thatallreceipts forgoods andservices soldtoanon-resident are
converted inSeychelles Rupees through adomestic commercial bank.
(d) Foreign anddomestic investment policies
Question 14.
Please describe indetail eachincentive provided byIPAandSITZ, andallconditions, suchas
export performance orimport substitution, thatarerequired tobesatisfied inorder toreceive
theincentive. Foreachincentive which isprohibited bytheWTO Agreement onSubsidies and
Countervailing Measures orWTO TRIMs Agreement, please explain howSeychelles intends to
revise thesubsidy scheme tobring itintoconformity withWTO requirements andprovide a
timetable forimplementation prior toWTO accession.
Answer:
Regarding incentives provided byIPAandSITZ, thisquestion hasbeenalready answered.
However, forfurther details onconcessions andincentives provided byIPAandSITZ please refer
tothetextsoftheInvestment Promotion ActandSeychelles International Trade Zone Actwhose copies
havebeensenttotheAccessions Division oftheWTO Secretariat. Please notethatallconcessions
andincentives granted under these laws, aswellasconditions attached tothem, areoutlined inthe
above-mentioned pieces oflegislation.
However, given thevitalimportance oftariffconcessions granted toexport-oriented companies
intheneweconomic andtradestrategies thattheGovernment isimplementing todiversify theSeychelles
economy andcreate asustainable export base,theSeychelles would needatransitional period tocomply
fullywiththeWTOAgreementonSubsidiesandCountervailingMeasures.Inthisregard,theSeychelles
Government willshortly provide theWTO Members withatimeframe fortheirconsideration and
approval.
Question 15.
What conditions areattached toregistration ofindividuals orcompanies wishing toimport and
export?
Answer:WT/ACC/SYC/7
Page11
Allindividuals orcompanies wishing toimport andexport must obtain alicence tooperate
from theSeychelles Licensing Authority (SLA). ACertificate ofOccupancy oraChange ofUse
Certificate ofapremises arethemaincriteria aprospective applicant mustmeettoobtain suchalicence.
Otherwise, thereisnospecific registration requirements forindividuals orcompanies wishing toengage
intheimporting andexporting business.
3. Foreign Trade inGoods andServices
(i) Balance ofPayments
Question 16.
What isthepresent balance ofpayments position? What isthepresent current account position?
Official reserves areequivalent tohowmany weeks ofimports? (6.3weeks inSeptember 1995).
Answer:
The1996Balance ofPayments (BOP) figures arenotavailable yet.The1995BOPregistered
adeficit ofSR67million withthecurrent account registering ashortfall ofSR181million. Asat
December 1996 theofficial reserves were equivalent to4.7weeks ofimports.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristic ofnational tariff
Question 17.
Please provide theoverall trade weighted average levelofduties andtheweighted average level
ofduties onmain customs tariff groupings.
Answer:
Theoverall trade weighted average levelofduties is30percent.
Question 18.
According totheresponse toquestion 5ofWT/ACC/SYC/5, theTrades TaxRegulations of1995
provides tariff concessions toallexport-oriented companies, provided thatnotlessthan50percent
oftheir products orservices aredirectly exported, thetotalproceeds oftheexports areremitted
totheSeychelles inforeign currency, andnotlessthan50percentoftheremittance isconverted
intoSeychelles currency. Paragraph (I)oftheIllustrative ListintheAnnex ItotheWTO
Agreement onSubsidies andCountervailing Measures provides thattheremission ordrawback
ofanimport charge isanexport subsidy ifitexceeds theamount oftheimport duties consumed
intheproduction oftheproduct exported.
How doestheGovernment ofSeychelles limit theremission ordrawback ofimport charges to
theamount oflevied onimported inputs thatareconsumed intheproduction ofexported?
Answer:WT/ACC/SYC/7
Page12
TheGovernment ofSeychelles hasestablished nomechanism todealwiththeremission or
drawback inthesense oftheWTO Agreement onSubsidies andCountervailing Measures.
(c) Tariff quotas, tariff exemptions
Question 19.
Please identify anyproducts, including HSnumbers, subject totariff quotas.
Answer:
Noproducts aresubject totariff quotas.
Question 20.
AccordingtoparagraphIII.(b)(iii)oftheMemorandumtheGovernmentofSeychellesgrantsspecial
tariff treatment, including tariff exemption, tocertain imports fordevelopment purposes, pursuant
tocommercial andinvestment laws, Technical Cooperation Agreements signed bytheGovernment
andanInternal Policy System.
Please provide copies ofthese lawstotheWorking Party andidentify theapplicable provisions.
Please identify allproducts, including H.Stariff numbers, eligible forimport dutyexemption.
(Itisnotclearfrom paragraph III.(b)(iii) which products receive dutyexemption andwhich receive
preferential rates). Please describe theconditions andrequirements toobtain thetariff exemptions,
aswellastheimport licensing procedures thatmust befollowed inorder toobtain thetariff
exemptions.
Please describe anytariff preferences ortariff exemptions thatarenotrelated todevelopment.
Answer:
Thelawsunderwhichspecialtarifftreatmentexemptionisgrantedare:theInvestmentPromotion
Act,International Trade Zone Act,andTrades TaxRegulations of1997. Please notethatthetexts
ofallthese lawsareavailable intheWTO Secretariat, Accessions Division. Theconditions and
requirements toobtain thesaidtariff exemption arealsocontained inthese laws. Please notefurther
thatallproducts areeligible forimport dutyexemption andpreferential ratesiftheinterested importers
meettheconditions andrequirements imposed bytheabove laws.
Regarding tariff exemptions thatarenotrelated todevelopment, theyarelisted inPartXV
oftheTrades TaxRegulations of1997 whose copyisasindicated above, available intheAccessions
Division oftheWTO Secretariat.
(d) Other duties andcharges
Question 21.
Does theSeychelles impose anyfeesorcharges connected withimportation orexportation, such
ascustoms processing fees, storage fees, documentation fees, inspection andquarantine andWT/ACC/SYC/7
Page13
sanitation fee?Please describe thenature ofthefeesorcharges, theamounts, andtheapproximate
costofservices rendered.
Answer:
Therearenocustomsprocessing,quarantineandsanitationfeesinSeychelles.Regardingstorage,
documentation andinspection fees,theyarefixedbytheTrades TaxRegulations of1997initspartXVI,
Schedules ofCharges. These feesorcharges whose nature isdescribed inthatPartreflect approximately
thecostofservices rendered bytheSeychelles customs authorities toimporters.
Question 22.
Please confirm thatthetrades taxonimports isnotlevied ondomestically produced goods.
Please provide atable showing alltaxes levied on(a)domestically produced and(b)imported
tobacco andtobacco products; alcoholic andnon-alcoholic beverages; petroleum andpetroleum
products.
Answer:
Yes,Trades Taxonimports isnotlevied ondomestically-produced goods. However, certain
ofthose goods areliable tolocaltrades tax.Please seethetablehereunder forfurther details.
Domestically produced
goodsTaxlevied Imported
goodsHarmonised
System codingTaxlevied
Tobacco &Tobacco
productsTobacco &Tobacco
products
cigarettes SR64per200
cigarettesunmanufactured tobacco;
tobacco refuse24.01 200%
cigars &cheroots,cigarillos
&cigarettes, oftobacco or
oftobacco substitutes.24.02 200%
Other manufactured
tobacco.24.03 200%
Alcoholic beverages
Beer SR15/lt Beer 22.03 SR25/lt.
Guinness SR13/lt Wine offresh grapes 22.04 SR50/lt.
Fermented beverages SR20/lt Vermouth andother wines
offresh grapes other than
heading 20.09.2205.0000 SR50/lt.
Other fermented beverages
(e.gcider, perry, mead)2206.0000 SR50/lt.WT/ACC/SYC/7
Page14
Domestically produced
goodsTaxlevied Imported
goodsHarmonised
System codingTaxlevied
undenatured ethyl alcohol
ofanalcohol strength
volume oflessthan80%
vol.; spirits, liqueurs &
other spirituous beverages;
compound alcoholic
preparations ofakind
used forthemanufactureSR80/lt undenatured ethyl alcohol of
analcohol strength volume
oflessthan80% vol.;
spirits, liqueurs &other
spirituous beverages;
compound alcoholic
preparations ofakindused
formaking ofbeverages.22.08 SR125-
150/lt
Non-alcoholic beverages
Softdrinks SR20/lt Fruit juices &vegetable
juices unfermented andnot
containing added spirits,
whether ornotcontaining
added sugar andother
sweetening matter.20.09 100%
except
blackcurrant
juice which
is0%.
Petroleum &petroleum
products
Notproduced locally Motor spirit (gasoline,
mogas, MSP)
Spirit type(gasoline) jet
fuel
Aviation spirit (Avgas)
kerosene, other thanJetA1
kerosene, other thanJetA1
Aviation kerosene (JetA1)
Gasoil(diesel)
Other fueloils27.10 See
schedule 4
forrates
"
"
"
"
"
"
Lubricating oilsother than
oilsof2710.5010Kg25%
Lubricating oilsspecifically
designed formarine &
agricultural useKg10%
Lubricating greases other
thangreases of2710.6010Kglt25%
Lubricating greases
specifically designed for
marine agricultural useKg10%
Other petroleum oilsand
preparationsKg,lt50%
Petroleum gases andother
gaseous hydrocarbons.27.11 5%WT/ACC/SYC/7
Page15
(e) Quantitative import restrictions
Question 23.
According totheresponse toquestion 8ofWT/ACC/SYC/5, theSeychelles restricts theimportation
ofseveral products (listinpart(b)oftheresponse), including avariety offoodproducts, explosives,
nuclear reactors andvehicles, aircraft andvessels.
Foreachitemlisted inpart(b)oftheresponse toquestion 8ofWT/ACC/SYC/5, please describe
thenature andamount ofthequantitative import restriction.
Does theSeychelles have anyquantitative restrictions onimports other thanthose identified in
theresponse toquestion 9ofWT/ACC/SYC/5?
Answer:
Theitems listed inpart(b)oftheresponse toquestion 8ofWT/ACC/SYC/5 arenotsubject
toquantitative restrictions. Theyareconsidered asrestricted inthesense thatanyperson isnotallowed
toimport them.
Forexample, dairy produce, fruitjuices andvegetables areconsidered asessential goods and
therefore areimported bytheSeychelles Marketing Board (SMB) onlyetc.Inthesamevein,petroleum
andpetroleum products areimported exclusively bySEYPEC. Infact,onecanconfirm thatthere
arenoquantitative restrictions onimports inSeychelles.
(f) Import licensing procedures
Question 24.
According totheresponse toaquestion from theUS,theSeychelles requires licences forthe
importation ofallgoods. TheSeychelles approves applications forimport licences onacaseby
casebasis andonthecharacter essential ornon-essential ofgoods forwhich import permits are
requested. Import permits relating torawmaterials andcapital goods areautomatically approved.
However, GATT Article XIprohibits theuseofimport licences asaprohibition orrestriction
onimportation ofanyproducts from amember country.
Please describe thesteps thatwillbetaken toabolish theimport licensing system inaccordance
with therequirements ofGATT Article XIandtheWTO Agreement onImport Licensing
Procedures, prior toWTO accession. What isthetimetable forelimination oftheimport licensing
regime?
According totheMemorandum, theSeychelles ’import licensing regime isbased ontheLicences
Act,1986. However, according toWT/ACC/SYC/4, Seychelles submitted theLicences Actof
31March 1987 totheSecretariat. Arethese licence Actsthesame? Ifnot,please submit tothe
Secretariat copyoftheLicences Actthatapplies totheimport licence regime. Alsoplease submit
acopy oftheregulations governing import licensing.WT/ACC/SYC/7
Page16
Answer:
Asmentioned earlier, themain purpose oftheimport permit requirement istodealwiththe
balance ofpayment difficulties thatSeychelles isfacing during theselastyears. Despite thesemeasures,
theSeychelles ’external accounts continue tobeunder pressure andithasbecome increasingly urgent
todealwiththeaccumulation ofcommercial payments arrears Please notethatasat31December 1996
thegross official reserves wereequivalent to4.7weeks ofimports. Given thepresent official reserves
position, itisevident thatSeychelles could notfullycomply withtheWTO Agreement onImport
Licensing Procedures andGATT Article XIprior toWTO accession. Inthisregard, weare
contemplating torequest foratransitional period ina“Flexibility Paper ”thatwillbeshortly submitted
totheSecretariat forWTO Members consideration.
Regarding Licences Act,there isonlyonewhich wasenacted inAugust 1986 (ActNo.3 of
1986). Itseems tousthatthedateof31March 1987wasinscribed bymistake when theDepartment
ofLegal Affairs putthatActonthebook oftheLaws ofSeychelles.
Question 25.
Allimports forretail orwholesale aresubject toimport licensing issued “inaccordance with
objective criteria ”.What criteria? Why isitnecessary toimpose these conditions? Isalicence
required foreachshipment? Licence holders canimport categories ofgoods listed inthereply
totheImport Licensing questionnaire. What goods areexcluded from thislist? Areimports
ofthese goods prohibited orrestricted?
Theresponse toquestion 10(WT/ACC/SYC/5) indicates that “some documentation and
requirements arenolonger necessary ”.Please givedetails.
Page 25oftheMemorandum saysthat“thelicensing system isforrevenue purposes ”.Howdoes
Seychelles reconcile thiswiththeprovisions ofGATT Article VIII?.
Answer:
Although theLicences Actof1986andRegulations made under thatActusetheterminology
“import licence ”,thelicence required bythatActisinfactalicence thatallimporters musthaveto
conduct importation business. ACertificate ofOccupancy oraChange ofUseCertificate ofthepremises
inwhich theimporting business willbeconducted areinfactthemaincriteria aprospective applicant
mustmeettoobtain suchalicence. Thelatter wasprimarily usedtocollect revenue andlistbusiness
activities forbusiness taxpurposes. Regarding theabove criteria, thelatter arerequired tomake sure
thatpremises usedbyimporters comply withtheplanning andfireregulations. Inaddition toan
application feeofUS$10,thelicence feepayable isofUS$240foroneyearandUS$1600 forthree
years.
Alicence isnotnecessary foreachshipment. Inthesame vein, licence-holders areallowed
toimport allgoods listed inthereply totheimport licensing questionnaire. Please notethatnogoods
areexcluded fromtheabove-mentioned listandthatthose whose importation isprohibited orrestricted
arenotincluded inthatlist.
From theSeychelles Government ’spoint ofview, thelevelandstructure ofthese feesdoes
notcontravene theprovisions ofArticle VIIIofGATT 1994 andtheWTO Agreement onImportWT/ACC/SYC/7
Page17
Licensing because, aspointed outabove, thatlicence isnotstrictly speaking animport licence. Despite
itsterminology, import permit issued bytheMinistry ofFinance andCommunications under theTrades
TaxActandTrades TaxRegulations isthetrueimport licence, atleast, inthesense ofArticle VIII
ofGATT 1994andtheWTO Agreement onImport Licensing. Please notefurther thatimporters pay
nofeetoobtain animport permit.
Question 26.
Theanswer toquestion 9(WT/ACC/SYC/5) lists12groups ofitems forwhich animport permit
isrequired. Please givethereasons foreach. Ifhealth andsafety, please indicate what standards
under lieeachrequirement. Aredomestically produced goods required tomeetthesame standards
asimported goods?
Thesame answer indicates thatatpresent Seychelles imposes some temporary restrictions on
imports forbalance ofpayments reasons. In1996, toimprove theBOP situation, anyimporter
isallowed toimport 75percentofits1995 imports. AreBOP measures stillinplace in1997?
Ifso,what measures? Plans forphasing out?
Answer:
SMB andSEYPEC haveexclusive rights fortheimportation ofthe12groups ofitems listed
inquestion 9ofWT/ACC/SYC/5. Themain purpose ofthispolicy istoguarantee areliable supply
ofbasic fooditems andfixed andfairprices forthem. Regarding other commodities likeexplosives,
pyrotechnic products etc.,theyarerestricted because there isaneedtocontrol their use,forsecurity
reasons.
ItistheGovernment 'saimtoensure thatdomestically produced goods meetthesamestandards
asimported goods. Itisforthisreason thatthere isnodiscrimination between local andimported
goods asfarastheapplication ofthesanitary andphytosanitary measures isconcerned. Inasimilar
manner, domestic goods aresubject totests carried outbytheSeychelles Bureau ofStandards (SBS)
inorder toensure thattheycomply withtheprovisions ofSBSActandother lawsdealing with
specifications, standardisation, calibration etc.,which aremodelled oninternationally acceptable rules
andstandards.
BOPmeasures arestillinplace in1997. Importers areallowed toimport thesame quota of
goods theyimported lastyear.There arenoimmediate plansforphasing outthesetemporary restrictions
given theavailable figures from theCentral bankofSeychelles which show thatthepressure onthe
Seychelles ’balance ofpayments persists. However, these measures willcontinue tobeunder review
andthisexercise willbedictated bythenational interests.
(g) Other border measures
Question 27.
DoestheSeychelles haveanyother border measures which havetheeffect ofrestricting thequantity
orvalue ofimported goods?WT/ACC/SYC/7
Page18
Answer:
No.
(h) Customs valuation
Question 28.
According totheresponse toaquestion from theUS,theSeychelles Government iscontemplating
tobring shortly thecurrent legislation inlinewithalltheprovisions oftheWTO Customs Valuation
Agreement. Consequently, theSeychelles Government willbeabletofully implement that
Agreement before thedateofitsaccession.
Wecommend theSeychelles foritscommitment toimplement fully theCustoms Valuation
Agreement. Please update theWorking Party regularly onthestatus ofdrafting andimplementing
WTO consistent Customs Valuation rules.
Answer:
Yes,theSeychellesGovernmentundertakestoimplementfullytheCustomsValuationAgreement
priortoaccession, andevenifnodraftlegislation isready forthemoment. Asrequested, theWorking
PartywillbekeptregularlyinformedonthestatusofdraftingandimplementingWTOconsistentcustoms
valuation rules.
(i) Other customs formalities
Question 29.
PleasedescribeallcustomsformalitiesforimportingproductsintoSeychelles,suchasdocumentation
requirements, certificate oforigin, commercial invoices etc.
Answer:
Ascustoms duties arecalculated onc.i.f., importers must provide customs authorities with
commercial invoices, contracts ofinsurance, billsoflading orairbills. However, insome special cases
importers mayseektoprovide customs authorities withdocuments containing terms ofpayment, if
any.
(j) Pre-shipment inspection
Question 30.
Please identify allproducts, including HSnumbers, thatrequire pre-shipment inspection asa
condition forimportation. Please describe fully thepre-shipment regime. Does theSeychelles
contract theservices ofapre-shipment inspection firmtoassist intheimplementation ofitscustoms
procedures?
Seychelles must commit thatifitcontracts withapre-shipment inspection firmtoassist inthe
implementation ofcustoms procedures, thentheGovernment ofSeychelles willensure thattheWT/ACC/SYC/7
Page19
operations ofsuchfirms areconsistent withtherelevant WTO Agreements, inparticular, GATT
Article VIII, theAgreement onPre-shipment Inspection andtheAgreement ontheImplementation
ofArticle VIIoftheGATT 1994.
Answer:
Seychelleshasnopre-shipmentregimeinplaceandconsequentlydoesnotapplyanypre-shipment
inspection.
(k) Application ofinternal taxes onimports
Question 31.
According totheMemorandum, there arenovalue-added taxes orsales taxes, orother taxof
equivalent effect onimported goods, when thelatter aresoldonthelocal market.
Please describe allinternal taxes generally andtheamount oftotalgovernment revenue contributed
byeachtypeoftax. Foreachtype, please identify anydifferences inthetaxation ofimported
goods andthetaxation oflocally-produced goods.
Answer:
There isonlylocaltrades taxwhich islevied oncertain locally-produced goods andservices
rendered locally. Forthelastfiscal year, thetotalgovernment revenue derived fromlocaltrades tax
amounted toSR66,573,587.53 forservices andSR127,159,192.64 forlocally manufactured goods.
Regarding import taxonimported goods, itwasofSR462,842,319.00.
(l) Rules oforigin
Question 32.
Wenoteintheresponse toquestion 12ofWT/ACC/SYC/5 thattheSeychelles doesnotobject
totheimplementation oftheUruguay Round Agreement onRules ofOrigin asofthedateofWTO
accession. Seychelles should commit totheadoption oflegal provisions forrules oforigin that
conform fully withtherequirements oftheWTO Agreement onRules ofOrigin prior toWTO
accession. Seychelles should alsocommit toadminister theWTO -consistent Rules ofOrigin
forbothm.f.n. andpreferential trade prior toWTO accession.
Does theSeychelles intend toadopt therules oforigin thatarebeing developed intheWTO?
Answer:
Yes.
(m-o) Anti-dumping, countervailing andsafeguards
Question 33.
Does Seychelles Government have plans tointroduce statutory provisions inthese areas?WT/ACC/SYC/7
Page20
Answer:
No.
2. Export Regulation
(a) Registration requirements forengaging inexporting
Question 34.
TheSeychelles described thefundamental requirements forobtaining alicence toengage
inimport licensing inpartIII.(b)(v) oftheMemorandum (non-tariff measures), including the
obligation toobtain aCertificate ofOccupancy orChange ofUseCertificate. Wenoteinthe
response toquestion 11ofWT/ACC/SYC/5 thatnoexport permit orlicence isrequired forexport
ofproducts, butweassume thisrelates totheexport ofproducts, notthebusiness ofexporting.
Doexporters need toobtain alicence toengage inthebusiness ofexporting products from the
Seychelles? please describe theprocedures andtherequirements toobtain suchanexport licence.
Answer:
Asnoted inthestatement referred to,thereisnoexport licence assuch. However, inthesame
manner asanimporter, anexporter needs alicence tooperate itsbusiness ofexporting. Regarding
theprocedures andtherequirements, inthesame manner asanimporter, anexporter must apply to
theSeychelles Licensing Authority bylodging anapplication including business name, address, date,
phone/fax number, description ofthecommercial-economic activity forwhich alicence isrequested
andsignature ofmanager ofbusiness. Inaddition, itmustprovide acopyoftheCertificate ofOccupancy
orChange ofUseCertificate ofthepremises inwhich thebusiness ofexporting willbeconducted.
(b) Customs tariff nomenclature
Question 35.
Please confirm thatSeychelles hasnoplans tointroduce export duties orexport restrictions (except
restrictions necessary toimplement SPS).
Does Seychelles agree thatconcessions andrebates inrespect ofcorporate taxforexport oriented
enterprises areprohibited export subsidies asdefined byWTO Agreement onSubsidies and
Countervailing Measures, Annex I(e)? When willitremove these?
Answer:
TheSeychelles Government doesnotintend tointroduce export duties oranyother restrictions
onexported products.
Although theGovernment recognises thattheconcessions andrebates granted toexport oriented
enterprises arenotfullyinconformity withtheWTO requirements, theGovernment alsofeelsthat
thepolicy doesnotcontradict thespirit oftheagreements ofWTO.WT/ACC/SYC/7
Page21
Infact,theprimary objectives ofthese incentives aretobroaden thesources ofthecountry 's
foreign exchange earnings withaviewtoeradicate theforeign exchange shortage, theexisting parallel
market andtheincreased speculative demand forforeign exchange.
(c) Quantitative export restrictions
Question 36.
Aretariffconcessionsforexportslimitedtotheamountoftariffpaidonproductsactuallyconsumed
intheproduction ofthese exports?
Answer:
No.
(d) Export licensing procedures
Question 37.
According totheanswer toquestion 11ofWT/ACC/SYC/5, theexport ofgoods isnotsubject
toexport permit orlicence. TheForeign Trade Memorandum section onRules Governing Export
states that“inprinciple, since 1January 1996there isnolonger aneedforexport permit orexport
licensing forexported goods. However, goods thatarerestricted forexport bylawstillrequire
apermit oraphytosanitary certificate issued bytheappropriate authority ”.TheMemorandum
further notes thatcertain plant materials andfishcertification forexport.
Please explain theapparent contradiction between thestatements inWT/ACC/SYC/5 andthe
foreign trade memorandum. Please identify allgoods, including HSnumber, thatarerestricted
forexport bylaworrequires aphytosanitary, plant orfishcertificate. Please describe theexporting
licensing procedures andrequirements applicable totherestricted exports.
Answer:
From ourpoint ofview, there isnocontradiction atallbetween thestatements in
WT/ACC/SYC/5 andtheforeign tradeMemorandum because before January 1996Seychelles exporters
hadtohaveanexport permit issued bytheMinistry ofFinance, theMinistry responsible forinternational
trade, before exporting anygoods. Thatexport permit wasinaddition tocertain documents required
bytheauthorities oftheimporting countries forcertain products andanimals suchasfreshfish,plant,
turtles (CITES) etc.Inthisregard, thepermit orphytosanitary certificate mentioned intheforeign
trade Memorandum isrequired whatever thenature ofexportation, commercial ornon-commercial.
Thegoods thatarecurrently restricted forexport orrequires aphytosanitary, plantorfishcertificate
arethefollowing:
0106.0000 Tortoises
0508.0000 Shells
0106.0000 Turtles
0106.0000 Birds
0802.9000 Coco-de-mer
0601.1000 to0604.9000 Plants andPlants ProductsWT/ACC/SYC/7
Page22
0602.9900 Orchid
0301.9900 Fish
0106.0000 Animals
Theinterested exporters mustapply totherelevant Ministries toobtain thenecessary permit.
Regarding therequirements applicable totherestricted exports, thelatter must comply withthe
requirements ofthesanitary andphytosanitary applicable inSeychelles andintheimporting countries.
Please refertoappendices IVandVoftheTrades Taxregulations of1997 forfurther details.
(e) Other measures
Question 38.
Does theSeychelles apply anyother measures? Ifso,please identify theproducts, including HS
numbers, subject totheexport measures anddescribe themeasures fully.
Answer:
No.
(f) Export financing, subsidy andpromotion policies
Question 39.
Does theSeychelles have anyexport financing, subsidy orpromotion schemes other than the
incentives provided bytheInvestment Promotion ActandtheSeychelles International Trade Zone
Act,topromote theexport-oriented industrial investment anddevelopment, which appear tobe
inconsistent withtheWTO Agreement onSubsidies andCountervailing Measures andtheWTO
TRIMs Agreement. Seychelles should prepare toeliminate allnon-conforming subsidies andtrade
measures prior toWTO accession.
Please describe howtheamount ofthereduction incorporate taxisdetermined bytheexport
performance ofanenterprise. Please identify allexport products, including HSnumbers, for
which enterprises canreduce theirCorporate Taxrates bysatisfying export performance criteria.
Answer:
Asmentioned earlier, theSeychelles economy isexclusively dependent ontourism services
andfishing forforeign exchange which isnecessary topayforimports. Theenactment oftheInvestment
Promotion Actin1994andtheSeychelles International Trade Zone Actin1995isprimarily designed
tocreateasustainableexportbaseinSeychellesandatthesametimetodiversifytheSeychelleseconomy.
Please notethatthereduced corporate tax(15percent) isfixed bytheInvestment Promotion Act.
Infact,theexport performance ofanenterprise istaken intoaccount onlytodetermine theamount
ofrebate onthecorporate taxpayable byanexport-oriented company. Tobenefit from thereduced
corporate taxrateandrebate oncorporate taxpayable, thenature ofexport products isnottaken into
account. Consequently, allproducts exported byanexport-oriented companies aresusceptible tobe
taken intoaccount indetermining ifthatcompany iseligible torebate oncorporate taxpayable. For
further details please seetheSchedule totheInvestment Promotion Act.WT/ACC/SYC/7
Page23
3. Internal Policies Affecting Trade inGoods
(a) Industrial policy, including subsidy policies
Question 40.
Please describe anysubsidy policies other thantheInvestment Promotion ActandtheSeychelles
InternationalTradeZoneAct,whichareinconsistentwiththerequirementsoftheWTOAgreement
onSubsidies andCountervailing Measures andtheWTO TRIMs Agreement.
Answer:
TheSeychelles Government doesnotimplement anyother subsidy policies.
(b) Standards andsanitary andphytosanitary measures
Question 41.
TheSeychelles willneedtoimplement theWTO Agreement onTechnical Barriers toTrade and
WTO Agreement onSanitary andPhytosanitary Measures prior toWTO Accession, without
recourse toanytransition period. TheSeychelles willneed toapply thesame rules regarding
technical regulations andstandards toimports from allsources andtoimported anddomestic
goods, andwillnotusesuch regulations torestrict imports. TheSeychelles willalsoneed to
ensure thatitstechnical regulations andstandards areapplied inatransparent andefficient
manner, andnotinawaythatdiscriminates between supplier countries orasadisguised restriction
oninternational trade.
Please identify allareas inwhich theSeychelles ’standards andinspections doesnotconform fully
withtherequirements oftheAgreement onTechnical Barriers toTrade andtheAgreements on
theApplication ofSanitary andPhytosanitary Measures andthesteps thattheSeychelles will
taketoremedy thedeficiencies prior toWTO accession.
Answer:
Infact,iftheSeychelles ’standards andinspection regime, notably theAnimal (Diseases and
Imports) Act,doesnotconform fullywiththerequirements oftheAgreement ontheApplication of
Sanitary andPhytosanitary Measures, ontheother hand, itcomplies fullywiththerequirements of
theAgreement onTechnical Barriers toTrade. Please note thattechnical regulations andstandards
introduced under theSeychelles Bureau ofStandards Actandotherrelevant lawsareregularly published
intheOfficial Gazette oftheRepublic ofSeychelles. These regulations andstandards apply bothto
imported anddomestic goods, regardless oftheirorigin.
Question 42.
According totheresponse toaquestion fromtheUS,theSeychelles recognizes theAnimal (Diseases
andImports) Actisnotfullyinconformity withtheWTO Agreement ontheApplication ofSanitary
andPhytosanitary Measures andcontemplates toabrogate itandenact anewoneintheforeseeable
future.WT/ACC/SYC/7
Page24
DoestheSeychelles commit totheimplementation ofaWTO-consistent regime prior toaccession?
Please provide regular updates ofthestatus ofdrafting andimplementation ofaWTO-consistent
regime fortheimportation ofanimals.
Answer:
Asmentioned earlier, wehavenoobjection totheimplementation ofaWTO-consistent regime
prior toaccession ifwecansecure necessary technical assistance todraftthenecessary legislation.
Regarding regular up-dates ofthestatus ofdrafting andimplementation ofaWTO-consistent regime
fortheimportation ofanimals, theSeychelles Government undertakes todothat.
(e) State-trading practices
Question 43.
Foreachofthepastthree years, please provide foreachSeychelles Petroleum Company (SEYPEC)
andSeychelles Marketing Board (S.M.B)-controlled import product, aslisted inAnnex 3ofthe
responses totheUSquestions, thequantities imported bySEYPEC andSMB from eachexported
country andtheamounts ofcustom duties thatwere paid.
Answer:
Thequantities ofgoods imported bySEYPEC andSMB foreachofthelasttwoyears and
theamounts ofcustom duties paidarethefollowing:
SMB TRADING
1995
Total c.i.f. value SR255,901,498 mln.
Total t.t.payable SR23,152,934 mln.
1996
Total c.i.f. value SR351,118,893 mln.
Total t.t.payable SR25,241,944 mln.
SEYCHELLES PETROLEUM
1995
Total c.i.f. value SR83,804,322 mln.
Total t.t.payable SR88,083,340 mln.
1996
Total c.i.f. value SR86,618,673 mln.
Total t.t.payable SR88,678,355 mln.WT/ACC/SYC/7
Page25
Please notethatwehavenostatistical information available onthequantities ofgoods imported
bySEYPEC andSMB from eachexported country andtheamounts ofcustom duties paidbythose
entities in1994.
(k) Trade agreements leading tocountry-specific quota allocation
Question 44.
Please identify anytrade agreements thatallocate import quotas tospecific countries anddescribe
thenature andamount oftheallocations.
Answer:
Seychelles hassigned notrade agreements thatallocate import quotas tospecific countries.
(l) Government procurement
Question 45.
Weexpect thattheSeychelles willjointheGovernment Procurement Agreement aspartofits
accession protocol commitments. Aschedule ofcommitments should besubmitted tothe
Government Procurement Agreement Committee within three months after accession.
According totheForeign Trade Memorandum, theSeychelles doesnothaveanyspecific legislation
governing government procurement.
HowdoestheGovernment ofSeychelles decide forwhich commercial contracts itwillapply open
andtransparent tendering procedures? Please describe theprocedures thatarebeing followed
forthegovernment contracts currently subject toopen tendering.
Please provide government procurement statistical information, broken down bycentral
government, sub-central government andother entities, andwithin eachoftheseheadings, supplies,
construction andservices.
Areforeign companies allowed tobidongovernment contracts? Ifso,what types ofprojects
areopen toforeign bidding?
Areforeign companies prohibited from bidding onanygovernment contracts? Ifso,please identify
thetypes ofcontracts andtherational forexcluding foreign participation.
Answer:
According totheFinancial Instructions issued bytheMinistry ofFinance andCommunications,
openandtransparent tendering procedures areusedwhere theestimated costofservices, works and
supplies isSR300,000 (US$ 60,000) ormore. Inthisrespect, theAccounting Officer ortheOfficer
authorised toincur expenditure ofsuchanamount should firstfloatatender. Theresponse ofthe
contractors along withtheactual tender documents andrecommendations aretobesenttothePrincipal
Secretary responsible forFinance forapproval. Theorder maythenbeplaced bycontract afterobtaining
approval fromthePrincipal Secretary responsible forfinance. Regarding construction contracts, the
latter arealways submitted toopenandtransparent tendering procedures.WT/ACC/SYC/7
Page26
Foreign companies areallowed tobidonanygovernment contracts andforalltypes ofprojects.
There isnodetailed statistical information available ongovernment procurement.
Question 46.
Does theSeychelles consider introducing legislations inthisarea?
Answer:
TheSeychelles hasnoimmediate plantointroduce legislation inthisarea.
4. Policies Affecting Trade inAgricultural Products
Question 47.
Please describe theSeychelles ’agricultural policies bycompleting aresponse toWT/ACC/4,
Information tobeProvided onDomestic Support andExport Subsidies inAgriculture.
Answer:
Please notethattheresponse toWT/ACC/4, Information tobeprovided onDomestic Support
andExport Subsidies inAgriculture willbenotified subsequently totheWTO Secretariat.
Question 48.
According totheMemorandum, among theobjectives ofthecurrent Seychelles agricultural policy,
istheprovision ofadequate financial support tofarmers inorder toensure efficient useoflimited
resources andtopromote andintensify mechanisation andautomation.
Please describe alltheforms offinancial support provided bythegovernment inthefurtherance
ofthese objectives. Isanyofthefinancial support given tofarmers conditioned onproduction
Volume orexport volume? Ifso,please describe theconditions fully.
Please describe the“Agricultural Development Fund”managed bytheDevelopment Bank if
Seychelles (DBS) toprovide Seychelles farmers withconcessionary loans. What isthetotalamount
ofagricultural funds managed bytheDBS? What aretheterms oftheconcessionary loans?
What criteria areapplied indetermining which farmers willreceive theconcessionary loans and
theamount oftheloans?
Answer:
Generally speaking, theGovernment provides farmers withtwoforms offinancial support.
Firstly, individual farmers, thatistosay,those whodonotcarry outtheiractivity through atrading
company arenotliable totaxonprofits, andsecondly, allfarmers, whether individual ornotareeligible
forconcessionary loans provided bytheAgricultural Development Fund (ADF). Thefinancial support
given tofarmers arenotsubject toproduction volume orexport volume.
TheAgriculturalDevelopmentFund,(ADF)administeredbytheDevelopmentBankofSeychelles
(DBS) hasbeenestablished bytheAgricultural Development FundOrder, 1995under thePublic Finance
(Control andManagement) Act. Theobjects oftheFund aretoextend financing facilities for
procurement ofagricultural goods andservices tofarmers engaged infulltimeagricultural activities,
including production oflivestock. TheFund consists ofmoneys paidintotheFund bytheAfricanWT/ACC/SYC/7
Page27
Development Development Bank oranyother person inoroutside Seychelles; income from any
investment ofthemoneys oftheFund; interest onloans granted outoftheFund etc.Theinitial amount
oftheAgricultural Development Fund willbeSR10million (US$ 2million) tobejointly funded by
theAfrican Development Bank (ADB) forSR8million (US$ 1.6million) andtheGovernment of
Seychelles forSR2million (US$ 400,000). SofartheFund hasreceived SR2.065 million fromADB
andSR1million from theGovernment ofSeychelles.
Disbursements ofthemoneys oftheFund shallbemade bytheBank ontherecommendation
oftheLoansCommitteewhichconsistsoffourrepresentativesoftheMinistryresponsibleforAgriculture
andMarine Resources, onerepresentative oftheMinistry responsible forFinance andonerepresentative
oftheDevelopment Bank ofSeychelles.
Theconcessionary loans aregranted tofarmers which areengaged infulltimeagricultural
activities including production oflivestock andregistered withtheMinistry ofAgriculture andMarine
Resources. Inaddition, theirproject mustbeviable. Theterms oftheloanareasfollows: maximum
SR100,000(US$20,000);interestrate8percentandrepaymentperiod5years(includinggraceperiod).
5. Policies Affecting Foreign Trade inOther Sectors
(a) Textiles régime
Question 49.
Please describe anyaspects oftheSeychelles trade regime unique totrade intextiles andapparel.
Answer:
Seychelles hasnospecific trade regime inthisfield.
(b) Policies affecting foreign trade inother major sectors
Question 50.
Does Seychelles provide anyfinancial support toitsdomestic fishing industry?
Ifso,please describe thenature andamount ofthefinancial support.
Answer:
TheSeychelles fishermen donotbenefit fromanydirect financial support fromtheGovernment.
However, those whoarenotcarrying outfishing activity through atrading company donotpaytax
onprofits aswellastrades taxonfuel,which isusedintheirfishing activity.
Question 51.
According totheMemorandum, there wasasharp increase infishcatch byEUvessels inside
theSeychelles Economic Exclusive Zone.
HastheSeychelles adopted anypolicies orentered intoanyagreements which confer preferential
access totheSeychelles Exclusive Zone byEUvessels? Ifso,please describe.WT/ACC/SYC/7
Page28
Answer:
No.Inthesame manner asJapanese, Russian, South Korean andTaiwanese vessels etc,EU
vessels negotiate theirfishing agreements withtheSeychelles Government.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Question 52.
TheTRIPS Agreement isafundamental component oftheobligations undertaken byallWTO
Members. Weexpect theSeychelles toimplement fully theWTO TRIPS Agreement asofthe
dateofaccession, without recourse toanytransitional arrangements.
Question 53.
Webelieve thatacceding countries should takethenecessary steps toapply theprovisions ofthe
TRIPSAgreementfromthedateofaccessionwithoutrecoursetoatransitionperiod.CanSeychelles
provide atimetable forbringing itself intolinewiththerequirements oftheAgreement?
Answer:
TheSeychelles Government isready toapply theprovisions ofTRIPS Agreement onthedate
ofaccession butinorder tofullyimplement it,theSeychelles willneedtechnical assistance forpreparing
thenecessary Bills, notably aPatents BillandCopyright Bill,aswellasallnecessary amendments
totheTrademark Decree of1978. Infact,theSeychelles envisages toapproach theWTO Secretariat
andWIPO fortechnical assistance.
(c) Membership ofinternational intellectual property conventions
Question 54.
DoestheSeychelles intend tojointheBerne Convention fortheProtection ofLiterary andArtistic
works,theGenevaConventionontheProtectionofProducersofPhonograms,theParisConvention
fortheProtection ofIndustrial Property, andTheTreaty onIntellectual Property inrespect of
Integrated Circuits? Ifnot,howwilltherequirements incorporated intheWTO TRIPS Agreement
beimplemented intotheSeychelles IPR?
Answer:
Yes, wealready confirmed inourprevious replies thattheSeychelles Government is
contemplating toaccede totheConvention Establishing theWorld Intellectual Property Organisation
(WIPO), aswellasalltheconventions administered bythatorganisation.
(e) Feesandtaxes
Question 55.
Please describe allfees,including amounts, forregistration ofintellectual property rights.WT/ACC/SYC/7
Page29
Answer:
Thefeepayable forregistration ofCopyrights isonlySR25(US$ 5).Regarding Trademark
ingoods andservices, theregistration feesandthose paidforother services rendered bytheRegistrar
ofTrademarks range from SR5(US$ 1)toSR200(US$ 40). Forexample, thefeepayable for
registration ofaseries oftrademarks under Section 18(2) oftheTrademark Decree foraspecification
ofgoods isofSR100(US$ 20),whereas forregistration ofadefensive trademark foraspecification
ofgoods included inoneclass, thefeepayable isofSR200(US$ 40).Forfurther details please see
FirstSchedule, Tariff ofFees, totheTrade Marks Decree andtheSecond Schedule tothePatents Act
whose textsisavailable attheAccession Division oftheWTO Secretariat.
2. Substantive Standards ofProtection
Question 56.
According totheresponse toquestion 24inWT/ACC/SYC/5, theSeychelles isintheprocess of
amending itsPatent, Copyright andTrademarks lawstobring them intoconformity withTRIPS
requirements.
What isthelegislative status oftheamendments toeachofthese laws? Please provide acopy
ofthedraft amendments totheWorking party forsubstantive review.
Does theSeychelles intend toamend sections 32and34ofthePatents Actof1901, regarding
compulsory licensing tobring them intoconformity withtherequirements ofTRIPS Article 31?
IstheSeychelles similarly revising itslawsrelating totheprotection ofindustrial designs, plant
variety protection, layouts designs ofintegrated circuits, andrequirements onundisclosed
information, including trade secrets andtestdata, tobring them intoconformity withWTO TRIPS
requirement? What isthelegislative status ofthese? Please provide copies ofthedraft billsto
theWorking Party forsubstantive review?
Article 6bisoftheParis Convention, incorporated byreference byArticle 16.2oftheTRIPS
Agreement, requires protection forwell-known marks. Please describe theprotection available
forwell-known marks inSeychelles, including thecriteria considered indetermining whether
amark iswell-known and34ofthePatents Actof1901, regarding compulsory licensing tobring
them intoconformity withtherequirements ofTRIPS Article 31?
IstheSeychelles similarly revising itslawsrelating totheprotection ofindustrial designs, plant
variety protection, layouts designs ofintegrated circuits, andrequirements onundisclosed
information, including trade secrets andtestdata, tobring them intoconformity withWTO TRIPS
requirements? What isthelegislative status ofthese? Please provide copies ofthedraft bills
totheWorking Party forsubstantive review.
Article 6bisoftheParis Convention, incorporated byreference byArticle 16.2oftheTRIPS
Agreement, requires protection forwell-known marks. Please describe theprotection available
forwell-known marks intheSeychelles, including thecriteria considered indetermining whether
amark iswell-known.
Answer:
Asindicated earlier, theSeychelles Government iscontemplating torepeal theexisting Patents
ActandCopyright Actwithaviewtoenact twonewpieces oflegislation which comply withalltheWT/ACC/SYC/7
Page30
WTO TRIPS requirements. TheSeychelles Government willshortly, withtheadvice andassistance
oftheWTO Secretariat, startpreparing thenecessary Billsforsubmission totheSeychelles National
Assembly forapproval. AsfortheTrade Mark Decree, thelatter willbeamended tobring itinline
withtheWTO TRIPS requirements. Regarding protection ofthewell-known marks, thecurrent
intellectual property protection regime applicable inSeychelles doesnotcontain anyspecific andclear
proviso toensure that.
Question 57.
TheSeychelles Government states thatitiscontemplating andconsequently adhere toall
international Conventions relating tointellectual property rights administered byWIPO. Could
theGovernment oftheSeychelles bemore precise about thesteps thathaveand/or willbetaken?
Thefollowing question, which wasposed onthebasis ofthedocumentation previously submitted,
hasnotyetbeen answered: Could theGovernment oftheSeychelles explain itssystem offees
forregistration ofintellectual property rights:
Could theGovernment oftheSeychelles explain indetail anylegal action thathasbeen taken
and/or willbetaken (including ameaningful schedule) with regard totheintroduction ofa
comprehensive system ofprotection ofintellectual property rights?
Answer:
Asmentioned earlier, inaddition totheaccession totheConvention Establishing theWorld
Intellectual Property Organisation(WIPO), theSeychelles willalsoaccede toallinternational treaties
administered byWIPO, notably theParis Convention fortheProtection ofIndustrial Property, the
Berne Convention fortheProtection ofLiterary andArtistic works, theMadrid Agreement concerning
theInternational Registration ofMarks, theHague Agreement concerning theInternational Deposit
ofIndustrial Designs etc.
Regarding theSeychelles system offeesforregistration ofintellectual property rights, please
refertotheresponse toquestion 55.
Asforthelegalaction thattheSeychelles Government hasbeentaken and/or willbetaken
toputinplace acomprehensive system ofprotection ofintellectual property rights, please seethe
response toquestion 56.
(a) Copyright andrelated rights
Question 58.
Initsanswer toquestion 24(WT/ACC/SYC/5), theSeychelles onlymentions computer programs.
Could theGovernment oftheSeychelles explain inmore detail itsintentions vis-à-vis theprotection
ofperformers, producers ofsound recordings andbroadcasting organisations? Furthermore,
could italsoclassify itsposition withregard tothe25-year term ofprotection ofworks (which
is25years lessthanthegeneral ruleasforeseen intheTRIPS Agreement)?
Answer:
TheSeychelles doesnotmention theprotection ofperformers, producers ofsound recordings
andbroadcasting organisations because thesepersons andorganisations arealready wellprotected under
theexisting Copyright Act. Regarding the25-year term ofprotection forworks, theSeychellesWT/ACC/SYC/7
Page31
recognises thatthesaidprovision doesnotconform withtheTRIPS Agreement andconsequently
contemplates toputinplaceacopyright protection regime which isconsistent withtheBerne Convention
andtheTRIPS Agreement.
(b) Trademarks
Question 59.
How arethenotions “trademark ”and“indicating aconnection ”defined andinterpreted in
Seychelles law? Please explain.
What legal implications doesithaveifwell-known trademark isregistered asadefensive mark?
Please explain.
Answer:
Atrademark isinpractice defined andinterpreted inSeychelles lawsasanysignsuchaswords,
designs, colours, numerals, letters, symbols etc,thatisusedtoidentify ordistinguish goods orservices
produced orrendered bydifferent producers, traders orproviders ofservices.
Asfor“indicating aconnection ”,itmeans thatatrademark canonlyexistthrough aneconomic
activity carried onindividually orthrough atrading company, oranyother organisations.
Themain purpose oftheregistration ofawell-known trademark asadefensive mark isto
strengthen theprotection ofthattrademark.
(e) Patents
Question 60.
What aretheconditions under which itisassumed thatapatent hasbeen “worked ”?
Arethere anyexceptions from patentability? Please explain.
Answer:
Asindicated earlier, thecurrent Patents Actof1901isoutdated andisalittlebitsilent onthe
conditions under which itisassumed thatapatent hasbeenworked. However, itisinpractice assumed
thatapatent isbeing worked ifthepatentee exploits thepatent itself orgrants licences onreasonable
terms toanyinterested persons.
Regarding exceptions from patentability, please notethatthecurrent Patents Actissilent on
thispoint.
4. Enforcement
Question 61.
IstheSeychelles amending itsCivil Code tobring itintoconformity withTRIPS requirements
forciviljudicial procedures andremedies, provisional measures, administrative procedures and
remedies, andspecial border measures? What isthelegislative status oftheamendments? Please
provide copies ofthedraft amendments totheWorking Party forsubstantive review.WT/ACC/SYC/7
Page32
Answer:
Please notethatallcivilandcommercial suits, actions, causes andmatters must bebrought
before theSupreme Court ofSeychelles andtheprocedure isconducted inaccordance withtheprovisions
oftheSeychelles codeofcivilprocedure. Legally speaking, thereisnonecessity toamend theSeychelles
Civil Code tobring itintoconformity withTRIPS requirements forciviljudicial procedures and
remedies,provisionalmeasuresetc.However,theissuessuchasadministrativeproceduresandremedies
shallbedealtwithinthenewintellectual property protection regime thattheSeychelles Government
iscontemplating toputinplace shortly.
(e) Criminal procedures
Question 62.
Please describe thecriminal procedures andpenalties applicable towilful trademark and
counterfeiting andcopyright piracy onacommercial scale.
Answer:
Please seeSection 4,Enforcement: Civil andCriminal Procedures andremedies, ofthe
WT/ACC/SYC/3.
6. Statistical dataonapplications forandgrants ofintellectual property rights, aswellas
anystatistical dataontheir enforcement.
Question 63.
Answer:
Patents
Application Registration
1995 3 3
1996 7 3
Trades marks
Application Registration
1995 248 282
1996 373 255
Copyrights
Application Registration
1995 7 7
1996 10 8WT/ACC/SYC/7
Page33
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 64.
According totheresponse toaquestion from theUS,since early 1990’stheCable andWireless
licence hasbeenre-negotiated inorder toopentheSeychelles telecommunications markets toother
potential operators.
Arethere currently anyother telecommunications services providers operating inSeychelles?
Answer:
Although some operators manifest theirinterest incellular telephones, forthemoment, no
other telecommunications services providers arelicensed tooperate inSeychelles.
Please notethattheresponse totheWT/ACC/5 willbesubsequently notified totheWTO
Secretariat.
Question 65.
Canmore information beprovided along thelinesofWT/ACC/5?
Answer:
Please refertotheresponse toquestion 47.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade in
Services
- Regional Agreements
Question 66.
Seychelles hasacceded tothePreferential Trade Area forEastern andSouthern Africa (PTA)
butnottotheCommon Market forEastern andSouthern Africa (COMESA). COMESA has
beennotified toWTO butPTA doesnotappear tobenotified. Would Seychelles provide details
ofpreferences granted andreceived? Would Seychelles alsoprovide details ofanyplans for
additional preferences?
Answer:
Itisimportant tokeepinmind thatthePreferential Trade AreaforEastern andSouthern Africa
(PTA) which wasaninitiation fortheinstitution ofacommon market forthatregion, isthecurrent
Common Market forEastern andSouthern Africa (COMESA). Infact,Seychelles remained amember
ofthisregional trading arrangement forayearonly. There werenopreferences granted andreceived
because Seychelles didnotapply theprovisions ofthetreaty establishing thePTA. Seychelles has
noplans togrant anypreference totheCOMESA Members because Seychelles isnotaCOMESA
Member andhasnointention ofjoining thatregional trading arrangement.WT/ACC/SYC/7
Page34
2. Economic Integration, Customs Union andFreeTrade Area Agreements
Question 67.
According totheresponse toaquestion from theUS,theSeychelles doesnotgrant preferential
rates toimports from PTA countries. HastheSeychelles made anycommitments toanyPTA
Member States regarding itspricing policy, foreign exchange controls orimport licensing?
Answer:
No.WT/ACC/SYC/7
Page35
Annex No.1
TheSeychelles 'Foreign Exchange Régime
TheSeychelles 'currency istheSeychelles Rupee, which is,since May1996, pegged tothe
Seychelles Trade andTourism Weighted Basket (STTWB), abasket comprising ofthecurrencies of
Seychelles 'eightmostimportant trading andtourism partner countries. These aretheUSDollar, Pound
Sterling, French Franc, Singapore Dollar, South African Rand, German Mark, Italian Liraandthe
Japanese Yen. Regarding exchange ratesforcurrencies intheabove basket andother currencies, the
Central Bank circulates them daily tothecommercial banks. Asforpurchase andsaleofforeign
exchange, notably Pounds Sterling, USDollars, andFrench Francs, theCentral Bank charges a
commission of0.125 percentonpurchases and0.875 percentonsales. However, theCentral Bank
iscontemplating toabolish shortly thedifference between thecommission charged onpurchases and
thatonsale.
Commercial banks andBureaux deChange arebylawallowed tosellandatthesame time
buyforeign currency. However, thereareotherauthorised dealers suchascasinos, guesthouses, hotels,
restaurants, self-catering establishments, touroperators, travel agents, shipping agents, shipchandlers
etc;which arerestricted tobuying onlyinthecourse oftheirlicensed activity. Those specific authorised
dealers must sellalltheirforeign currency proceeds tocommercial banks. Allother transactions in
foreign exchange areprohibited. Inthesame vein, allnon-residents andnon-Seychellois persons are
prohibited from funding accounts inSeychelles rupees. Thismeasure isdesigned tocopewiththe
parallel market andtheshortage offoreign exchange generated byitintheofficial banking system.
Since 1January 1997 commercial banks mustallocate 30percentoftheirforeign exchange
inflows totheCentral Bank foressential payments and20percenttoclearthefrozen pipeline. The
remaining 50percentofforeign exchange inflows areusedatthediscretion ofthecommercial banks
forcommercial payments, thatistosay,tosatisfy theircustomer needs.
Regarding imports andimport payments, although ashortage offoreign exchange hasledto
arrears withrespect tocommercial payments thatconstitute adefactorestriction onimport payments
theyarenolegal restrictions onpayments forimports. Asamatter offact,there arenotaxes or
subsidies onpurchases orsalesofforeign exchange. There arealsonoarrangement forforward cover
against exchange rateriskintheofficial orthecommercial banking sector. Inthesame vein, access
toforeign exchange topayforimports isnotsubject toimport licence orimport permit. There are
nolegalrestrictions onpayments forinvisibles, andalsonolegallimits areimposed ontheprovisions
oftravel exchange. Travellers, whether residents ornot,maytakeorsendoutofSeychelles anyamount
offoreign currency anduptoSeychelles rupees 100. Seychellois nationals andresidents arealso
allowedtoopenbankaccountsinforeigncurrencywithfinancialinstitutionsoperatingoutsideSeychelles.
Regardingexportandexportproceeds,residentsandnon-residentsmayexportgoodsandservices
toanycountry. However, since1January 1997allexport proceeds mustberepatriated intoSeychelles
through theSeychelles banking system. Thislastmeasure isprimarily designed todealwiththegrowing
deterioration oftheSeychelles 'balance ofpayments andexternal accounts. Please notethatsince the
beginning oftheeconomic andtrade liberalisation programme, theSeychelles 'balance ofpayments
andexternal accounts haveregistered sizable overall deficits, which havebeenfinanced byadraw-down
ofreserves andtheaccumulation ofexternal payments arrears.
Please notefurther thatlocalbusiness people areallowed toaccept payments inforeign currency
forservices rendered tonon-residents andthatforeign visitors maybring inwithout anydeclaration
anyamount offoreign currency fortravel expenditure.WT/ACC/SYC/7
Page36
Asforcapital transfers, noexchange control requirements areimposed oncapital receipts or
payments byresidents ornon-residents. Inthesame vein, investment outside Seychelles byresidents
andbycompanies orother entities carrying onbusiness inSeychelles isnotsubject tolimitations
whatsoever. Inthisregard, foreign investment isfreely permitted. However, commercial banks
operating inSeychelles arerequired torestrict credit tonon-nationals primarily forworking capital
purposes andgenerally toanamount thatdoesnotexceed overseas funds invested inSeychelles.
Regarding theamount allocated totheSeychelles Marketing Board forpurchases ofessential
goods for1995 and1996 andweekly allocation andsaletoSMB, please seethetablehereunder.
1995 1996
Jan.- Aug. Sept.- Dec. 1995 Jan.- March Apr.- Dec. 1996
Essential imports 51.064 20.401 71.465 1.917 1.917
Weekly allocation &
saletoGovt. (SMB)25.334 21.476 75.264 96.74
There isnostatistical information available ontheabsolute amounts offoreign exchange
allocated toeachproduct andcategory inthepipeline andamounts leftoverfordiscretionary allocations
byCommercial banks. There isalsonospecific method usedtodetermine thepriceforsalesofforeign
exchange fromtheso-called discretionary funds, which areinfactthepercentage offoreign exchange
thatCommercial banks wereallowed touseforcommercial payments without referring totheCentral
Bank’sinstructions. Inaddition, there isnodiscrimination between theexchange rates thatwere
applicable tothepurchase offoreign currency within theallocated category andtopurchase forthe
products through thediscretionary funds thatCommercial banks wereallowed tousetosatisfy their
customer needs. Infact,theratesapplicable werebased ontheexchange ratescirculated dailybythe
Central Bank.