RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/ALB/51
13 July 2000
(00-2856)
Working Party on the
Accession of Albania
REPORT OF THE WORKING PARTY ON
THE ACCESSION OF ALBANIA
TO THE WORLD TRADE ORGANIZATION
Introduction
1. In November 1992, the Government of Albania requested accession to the General Agreement on
Tariffs and Trade (GATT 1947). At the 48th Session in December 1992, the GATT 1947
CONTRACTING PARTIES established a Working Party to examine the application of the
Government of Albania to accede to the General Agreement under Article XXXIII, and to submit to
the Council recommendations which may include a draft Protocol of Accession.  Membership of the
Working Party was open to all contracting parties indi cating the wish to serve on it.  Having regard to
the Decision adopted by the General Council on 31 January 1995, the GATT 1947 AccessionWorking Party was transformed into a WTO Accession Working Party.  The terms of reference and
the membership of the Working Party are reproduced in document WT/ACC/ALB/5/Rev.2.
2. The Working Party met on 29-30 April and 29 October 1996;  27 January, 30 April, 9 July,
30 July, 17 September and 6 October 1999 and on 3 July 2000 under the Chairmanship of Mr. A.
Pinto de Lemos (Portugal).
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Albania, the questions submitted by Members on the foreign trade regime of
Albania, together with the replies thereto, and other information provided by the authorities
(WT/ACC/ALB/3, 4 and 8; WT/ACC/ALB/23; WT/ACC/ALB/25; WT/ACC/ALB/26 to
WT/ACC/ALB/42), including the following legislative texts:
1. Law No. 8417 dated 21 October 1998 "For the Approving of the Constitution
of Albania";
2. Law No. 8449  dated 27 January 1999 "On Custom Code of the Republic of
Albania";
3. Decision No. 205  dated 13 April 1999 of the Council of Ministers (COM), "Implementing
Provisions of the Custom Code";
4. Decision of the COM No. 516  dated 14 October 1999 “For some Changes on the
Implementing Provisions of the Custom  Code, Decision of the COM, No. 205  dated
13 April 1999”,
5. Decision of the COM, No. 435  dated 9 September 1999 “For Approving the Rules of Origin
Agreement of the WTO”,
6. Law No. 8464 dated 11 March 1999 "On Standardisation";
7. Decision No. 242 dated 28 May 1999 of the COM "For the Approval of the Code of Good
Practice for Adoption, Approval and Application of Standards";
8. Decision of the COM, No. 372 dated 4 Augu st 1999 "For the Preparation, Adoption and
Application of Technical Regulation and the procedures for assessment of Conformity for
Standards and Technical Regulation";WT/ACC/ALB/51
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9. Decision of the COM, No. 371 dated 4 August 1999 "For the Exchange of Information for
Standards and Technical Regulation";
10. Decision of the COM, No. 323 dated 8 July 1999 "For the Criteria and Competencies in the
Field of Standardization, Certification and Accreditation";
11. Decision of the COM, No. 472 dated 6 Octobe r 1999 on “The Approving of the Sanitary and
Phyto Sanitary Measures Agreement of WTO”,
12. Law No. 8466 dated 24 March 1999 “On Anti-dumping”;
13. Law No. 7819 dated 27 April 1994 "For Industrial Property";
14. Law No. 8477 dated 22 April 1999 “On some Changes and Supplements on the law No. 7819
dated 27 April 1994, For Industrial Property”;
15. Law No. 8488 dated 13 May 1999 “On the Protection of Topographies of Integrated
Circuits”;
16. Law No. 7564 dated 19 May 1992 "On Copyright";
17. Law No. 7923 dated 19 April 1995 "On some Changes in the law No. 7564 dated
19 May 1992, "On Copy right";
18. Law No. 8594 dated 6 April 2000 “On Some Changes to the Law on Copyright, No. 7564
dated 19 May 1992, changed with the Law No. 7923 dated 19 April 1995”;
19. Law No. 8517 dated 22 July 1999 "On the Protection of the Personal Data";
20. Law No. 8503 dated 30 June 1999 "On the Right of Information over the Official
Documents";
21. Law "On Custom Tariffs", is changed by the new law "On Custom Tariff Nomenclature",
No. 8477 dated 14 April 1999;
22. Law No. 7609 dated January 1993 "On Priority Tourism Development Zones" and the
amendments;
23. Law No. 8083 dated November 1995 "For the Telecommunications" and the amendments;
24. Law No. 8288 dated 18 February 1998 "On the Telecommunications Regulatory Body";
25. Law “On Telecommunications” dated 14 June 2000.
26. Law No. 8084 dated 7 December 1995 "On Competition";
27. Law No. 8308 dated 18 March 1998 "For Road Transports";
28. Law No. 8081 dated 7 March 1996 "On Insurance and Re-insurance Companies";
29. Law No. 8606 dated 27 April 2000 “On Some Changes on the Law on Insurance and Re-
Insurance Companies, No. 8081 dated 7 March 1996”
30. Law "On Excise Taxes" (Law No. 7678) and amended by the law "On Excise Tax in the
Republic of Albania", No. 8437 dated 28 December 1998.
31. Law No. 8437 dated 28 December 1998 "On Excise Tax in the Republic of Albania";
32. Law No. 8507 dated 7 July 1999 “On Some Changes in the Law on Excise Tax in the republic
of Albania, No. 8437 dated 28 December 1998”
33. Law No. 8445 dated 21 January 1999 "On Value Added Tax";
34. Law No. 8269 dated December 1997 "On the Bank of Albania";
35. Law No. 8365 dated 2 July 1998 "Banking Law of the Republic of Albania";
36. Strategy on Privatization, March 1998;
37. Law "On Privatization", March 1998;
38. Law No. 8306 dated 14 March 1998 "On Privatization Strategy of Primary Importance
Sectors";
39. Law No. 8334 dated 23 April 1998 "On the Privatization of Commercial Enterprises which
Function in Non-Strategic Sectors";
40. "Privatization Strategy of State Owned Companies in Primary Importance Sectors";
41. Report on Maritime Legislation;
42. Law No. 8080 dated 7 March 1995 "On Securities";
43. Law "On Protection of Topographies of Integrated Circuits";
44. Law No. 7980 dated 27 July 1995 "On Sales and Purchase of Sites";WT/ACC/ALB/51
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45. Law No. 7908 dated 5 April 1995 "O n Fishery and Aquaculture";
46. Law No. 7074 dated 23 February 1993 "On Ve terinary Service and Inspectorate";
47. Law No. 8312 dated 26 March 1998 "On U ndistributed Agricultural Lands";
48. Law No. 8318 dated 1 April 1998 "On Leasing Ag ricultural Land, Forest Land, Meadows and
Pastures which are State Property";
49. Law No. 8337 dated 30 April 1998 "On the Transf er of Ownership of Agricultural Land,
Meadows, Pastures and Forest";
50. Law No. 7827 dated 31 May 1994, changed by the Law No. 8428 dated 14 December 1998
"For the Legal Profession in the Republic of Albania";
51. Law No. 7829 dated 1 July 1994 "On Notary";
52. Law No. 8578 dated 10 February 2000 “On Theatres”
53. Law No. 8576 dated 3 Febr uary 2000 “On Libraries”
54. Law No. 7810 dated 6 April 1994 "Of Higher E ducation in the Republic of Albania"; is
abrogated by the new Law No. 8461 dated 25 Fe bruary 1999 “On Higher Education In the
Republic of Albania”
55. Law No. 8492 dated 27 May 1999 "On the Foreig ners in the Republic of Albania";
56. Law No. 7971 dated 26 July 1995 "On Public Procurement";
57. Law No. 8301 dated 12 March 1998 "On some Changes in the Law 7971 dated 26 July 1995
"On Public Procurement"";
58. Law No. 8112 dated 28 March 1996 "On some Changes in the Law 7971 of 26 July 1995 "On
Public Procurement" Amended w ith Law 8074 of 22 February 1996";
59. Decision No. 12 dated 1 January 1996 of the CO M "On the Rules of Public Procurement";
60. Decision of the COM “On Some Changes in the Decision of the COM, On Rules on Public
Procurement, No. 12 dated 1 January 1996”. This Decision expected by end of 2000 will
approve the following documents:
61. Documents "On General Conditions of Contract";
62. Documents "On Procurement of Work";
63. Documents COM "On Request for Quotations of Goods";
64. Documents "On Invitation to quote for Small Works";
65. Documents "On Standards Bidding Do cument for Procurement of Goods";
66. Documents COM "On Standards Bidding Docume nts Approved by the Decision of the COM
No. 12 dated 1 January 1996".
4. The representative of Albania said that membership in the WTO was one of Albania's most
important economic policy objectives.  From 1944–1992, Albania was the antithesis of a market
economy.  Private ownership was completely forbidden and all economic activity was controlled by
the State, without exception.  For much of this period, Albania's economic, political and cultural ties
with the rest of the world were reduced to an absolute minimum.  Albania's case was unique in terms
of the intensity of the economic centralization and isolation.  The present situation was strikingly
different.  The Albanian Government had passed laws providing for private ownership,
entrepreneurial activity, open competition, bankruptcy, foreign investment, protection of consumers,privatization of small, medium and large enterprises, and many other elements of a modern
commercial legal regime.  The steady growth of domestic and foreign investment was a vote of
confidence by the private sector in Albania's commercial law reforms.  The Albanian government had
dramatically reduced its role in almost all fields of economic activity. The public share of GDP was
declining, the private sector's share stood at 80 per cent of GDP.  The trade share of GDP hadincreased: in 1998, the share was 20 per cent.  The private sector accounted for 78 per cent of exports
and 82 per cent of imports.  Approximately 76 per ce nt of Albania's workforce was engaged in private
business.  Price controls had been completely eliminated on goods, although a price reference scheme
existed for pharmaceuticals.  A limited price control system existed of services, a full and complete
listing of which was provided to members of the Working Party in document WT/ACC/ALB/25.Albania's national currency, the Lek, was internally convertible and had been floating freely sinceWT/ACC/ALB/51
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1992.  The relative stability of the Lek was one sign, among others, that Albania's efforts to exercise
fiscal and monetary control, and more generally to ensure macro-economic stability, had been
successful.  Albania had turned its back on isolationism and pursued a program to strengthen its ties
with the rest of the world, concluding bilateral economic, trade and industrial agreements with 30
countries and 15 other agreements were under negotiations.  Albania was a member of theInternational Monetary Fund, the World Bank, the European Bank for Reconstruction and
Development, the Black Sea Economic Initiative and the Organization of Islamic States.  Albania was
working towards an Association Agreement with th e European Union, and, membership in the World
Trade Organization.  Over the past years, Albania had vigorously pursued a program to establish a
market economy and to become a full participant in the international community.  The areas of tax
reform and privatization were the most important problems of economic reform.  More than
75 per cent of national wealth had been privatized including:  96 per cent of the agricultural land,100 per cent of the services, 100 per cent of agricultural mechanics, 100 per cent of road transport.  A
great deal of progress had been made in a relatively short time, and the most important elements of a
market-based economy had been established.
5. The representative of Albania said that trade liberalization had been one of the main pillars of
economic stabilization and reform along with price liberalization, exchange liberalization, fiscalcontrol, monetary restraint and rapid privatization of agricultural land and small enterprises.  The
choice was made early in the reform process to pursue rapid trade liberalization rather than slow, step-
by-step liberalization.  This choice was partly dictated by the severity of Albania's economic and
social crisis at the time.  The collapse of Albanian production meant that Albania had to open its trade
regime in order to ensure the supply of consumer goods and other commodities needed to rebuild theeconomy.  The Government of Albania recognized that an open trade regime made important
contributions to Albania's economic and social well-b eing.  The representative of Albania highlighted
the main characteristics of Albania's trade regime:  a simple import tariff structure comprised of only
three ad valorem  tariff levels:  five, ten, and twenty per cent; no tariff peaks, only ad valorem  tariffs
were applied, no  specific tariffs, no tariff rate quotas, and no combined duties; the maximum tariffwas 20 per cent; 29 per cent of all tariff line items have rates that were 20 per cent; 37 per cent of all
items have rates that were 10 per cent, and 34 per cent of all tariff line items had rate offers that were
5 per cent or less; no import surcharges; no quantitative restrictions on imports or exports, except to
protect the environment or assist in infant industries; no export subsidies; no restrictions on current
transactions; no trade-related investment measures; no internal taxes or other charges that are higher
for imports than for domestic products.  In addition, the role of State foreign trading enterprises had
been reduced dramatically. Despite recent disturbances, macroeconomic developments had beenbroadly on track.  An episode of civil disorder, together with the situation in Kosovo, had reduced
economic and investor confidence, but the government estimated that the momentum from earlier in
the year would result in real GDP growth of 8 per cent for the year 1999, only slightly below the
targeted 10 per cent and still implying a return of output to the level prevailing before the devastating
crisis of spring 1997.  Also, it was forecasted that Albania would have the same level of the GDPgrowth rate for the period 2000-2003. Other important  indicators showed that the macroeconomic
stability program had been successful:  relatively stable and low rates of inflation, 8.7 per cent in 1998
and a forecast of 7 per cent for 1999; and during the year 2000 the inflation figure would be at
2-4 per cent;  exchange rates were stable and had modestly strengthened the Lek vis-à-vis the US
dollar with average exchange rates in 1997 at lek 151.5;  lek 149 in 1998, and lek 135.3 in 1999.Budget revenues had increased in 1998-1999 as a result of tax collection.  In 1998 the tax revenue as a
share of GDP had increased to 12.5 per cent; for the first time current expenditures (not counting
interest payments) were covered by revenues, during 1999 this figure was at 12.9 per cent and was
forecasted to be at 15.3 per cent in 2000. The government was firmly committed to continue
macroeconomic stabilization and structural reform.
6. In the expectation that the accession negotiations would be finished expeditiously in 1999,
permitting Albania to take part in the new series of multilateral trade negotiations, the representative
of Albania submitted to the Working Party a Chart On Conformity of the New Albanian LegislationWT/ACC/ALB/51
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concerning the WTO and Status of Draft Legislation and Amendments in document
WT/ACC/ALB/40/Rev.2.
7. In their opening remarks, members of the Working Party welcomed and supported the request
from Albania to accede to the WTO.  In acknowledging the huge impact in Albania of the difficult
situation in the Balkans, where large populations had been uprooted, productive structures destroyedand employment possibilities curtailed by the lack of capital, technology, training and markets, some
members emphasized that adherence to the multilateral rule-based system would consolidate Albania's
reforms and transitions towards a free market economy system, enhance the universality of the WTO,
and bring mutual benefits to Albania and Members of the WTO.  Members expected Albania's
accession to proceed expeditiously.
8. The Working Party reviewed the economic policies and foreign trade regime of Albania and the
possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of theWorking Party on the various aspects of Albania's foreign trade regime and on the terms and
conditions of Albania's accession to the WTO are summarized below in paragraphs 9 to 166.
ECONOMIC POLICIES
Monetary and Fiscal Policy
9. In response to requests for information on the government's economic policy objectives, the
representative of Albania stated that the main objective of the Bank of Albania was to achieve price
stability and to maintain this stability over time.  The monetary policy of the Bank of Albania was
elaborated to serve the achievement of price stability.  The proper monetary instruments were chosenfor the same purpose.  The Bank of Albania was committed to following a course of prudential and
relatively strict monetary policy, keeping the control over the growth of broad money.  The results of
the monetary policy of the Bank of Albania were measured through the realization of three
quantitative monetary objectives, i.e:
- maintaining a floor on net international reserves of the Bank of Albania;
- maintaining a ceiling on the net domestic assets of the Bank of Albania; and
- maintaining a ceiling on the net credit of the banking system of the government.
10. She added that to implement the monetary policy, Bank of Albania used direct and indirect
instruments.  The direct instruments were used to define the minimum level of interest rates for time
deposits at the state-owned banks and the limit of credit for the economy.  The indirect instruments
which were used to set the percentage rate for refinancing and the rate of required reserves.  The Bankof Albania used the direct instruments more intensiv ely than the indirect mean s.  In determining the
interest rate for deposits, the Bank of Albania accounted for the rate of growth in inflation to maintain
stable real and positive interest rates to retain the public’s confidence in the banking system.  The rate
of growth in the money supply was a second instrument that was used to determine the interest rates.
11. She noted this was the framework of monetary po licy that had been implemented in Albania since
1993 and it was foreseen to be implemented during three other future years. The policy and monetary
program were compiled in cooperation with the IMF (in the framework of ESAF 1 and 2
Agreements).  In 1998, the Bank of Albania’s main objective for 1998 was realized, even better than
it was forecasted.  The annual level of inflation was 8.7 per cent compared with the 10 per cent level
that was anticipated.  (During 1997, the rate of inflation was 42.1 per cent.) In 1999 this level was at7 per cent and during 2000 it would be 2-4 per cent.  The realization of the money supply objectives
of the Bank of Albania was also at levels better than those foreseen.  It was forecasted that money
growth would be 23 per cent at the end of 1998; however, the growth in money was only
20.7 per cent. In 1999 the growth in money supply was at the same level and it was forecasted to be at
15.3 per cent during the first six months of 2000.  The net international reserve was US$ 5 millionWT/ACC/ALB/51
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over the limit of the ceiling, providing a cover for the demand for imports.  (It was foreseen that the
level of reserves was to be 3.8 months of imports compared with 4.7 months of imports).  Net
domestic assets of the Bank of Albania and net credit of the banking  system for the government were
realized at less than the ceiling.
12. The representative of Albania noted that the monetary program for 1999 was compiled in such a
manner to provide broad money growth in accordance with the objective of inflation, which was
foreseen to be 7 per cent on an annual level.  The le vel of inflation for 1999 showed that in spite of the
situation in the region the 7 per cent target was be realized.  Broad money growth was expected to be
increased by about 15 per cent.
13. Concerning fiscal policy, since 1998, the Al banian Government had implemented its
macroeconomic stabilization package.  The Government has used financial and economic measures
respecting its fiscal targets, reducing the domestically financed deficit through the combination ofmeasures focused on an increase in budget revenue and tightening the increase of primary
expenditures.  All the domestic fiscal efforts support the monetary policy objectives, reducing the rate
of inflation to 2-4 per cent in 2000, compare with 7 per cent in 1999, 8.7 per cent for 1998 and
42 per cent in 1997.  This is because of a very large increase in private transfers and the stabilization
of the domestic currency.  The Government of Albania has guaranteed further fiscal consolidation tokeep its growth in inflation in line with its principle trading partners by 2001.  During the first 6
months of 1999, the government's fiscal deficit was stable.  For the remainder of 1999, the fiscal
deficit, financed from domestic sources, was reduced to 5.1 per cent of GDP and 3 per cent of GDP
by 2000, 1 per cent less than in 1998, and less than half of the level in 1997. This reduction will
support an increase of private sector credit and will facilitate an increase in domestic savings.
14. She noted that necessary measures to meet the deficit targets had been accomplished.
Government revenue as a percentage of GDP had increased, primarily from tax revenue, as a result of
the implementation of 10 per cent tax on earned interest income, receipts from excise taxes, the
solidarity tax (a supplementary income tax to finance the additional expenditures for public order after
the civil disorder of September 1998), tariff revenues, and improvements in anti-smuggling measuresat the border.  The general increase was at 0.6 per cent of GDP in 1999. From the expenditure side,
there would be savings in all areas of budget expenditures which serve as future sources to finance the
increase in operation and maintenance expenditures and government investments as well.  To increase
the expenditures in infrastructure, health, education, etc. above the average levels and to reach fiscal
consolidation, it was necessary to reduce tax rates and to broaden the tax base.  The growth rate in
GDP was 8 per cent in 1999 and would be the same level in 2000.  The public sector contribution to
GDP will be reduced through privatization and through the improvements due to efficiencies of thegovernment's public administration program through a reduction in the number of employees in the
public sector and increase in the salaries of technically skilled staff in the public sector. Albania
would  implement a well functioning market for ag ricultural land by maintaining the full productive
capacity of the agricultural sector.
15. With regard to the foreign debt, Albania had maintained its target.  At the end of 1998, the
medium and long-term foreign debt, including the arrears, was at 30 per cent of GDP.  In 1999, the
service of foreign debt was about US$ 26 million, or 8.5 per cent of exports on goods and services and
less than 1 per cent of GDP.  Albania has had very positive results in the payments of arrears.
Albania would  continue its efforts to improve its relations with foreign creditors.  Albania aimed to
terminate the bilateral agreements with Russia and Italy for renegotiating the terms of its debt, andhad begun the negotiations with other creditors to make payments of arrears at least in line with
competitive conditions with those of the Paris Club Convention.  Finally, Albania aimed to improve
the control over foreign debt and foreign aid, and to improve measures to utilize the sources of aid
funding.WT/ACC/ALB/51
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Foreign Exchange and Payments
16. The representative of Albania said that exchange control authority was vested in the Bank of
Albania.  Foreign exchange for payments abroad could be obtained freely subject to documentation
requirements (application, contract and invoice, and repatriation). The repatriation requirements are
imposed with regard to capital controls which apply only to Albanian residents.  Albanian residentsare not allowed to transfer capital abroad.  Payments for and proceeds from invisible transactions
were not restricted.  Travellers could bring in or take out any amount in domestic or foreign
currencies.  Albania had Article XIV under the Article of Agreement of the IMF.  There were controls
on capital transactions.  The currency of Albania (Lek) floated independently and the current
exchange rate in 1999, was US$1 = lek 135.3.  The Bank of Albania calculated the daily average
exchange rates for the US dollar and 22 other currencies.  Government and commercial bank rates
were based on market rates.  In response to further questions the representative of Albania clarifiedthat its legislation did not apply any restrictions on foreign exchange related to any type of
investment, the quantity of an investment, the amount of foreign currency that can be exchanged, and
the ability of foreign investors to repatriate their profits in foreign currencies or in Lek which were
earned through their investment (e.g., every type of investment including deposits) and/or the initial
capital invested.  There were no restrictions on the access to foreign exchange to an amount of foreignexchange attributable to a foreign enterprise. That is, there were no provisions in the Law that restrict
foreign exchange such that imports are, in effect, restricted or limited.
17. In response to questions from a member of the Working Party concerning the controls and
requirements on foreign exchange acquisition and use, the representative of Albania said that
individuals, juridical and physical persons, who were Albanian or foreign, when entering the territoryof the Republic of Albania, had to declare to the Albanian Customs Authorities the value of foreign
exchange in cash and traveller's checks equal to or more than US$ 10,000 or its equivalent in any
other foreign currency(ies).  In such cases, individuals, juridical and physical persons, had to fill a
declaration form which had to be stamped by the Albanian Customs Authorities.  This declaration
provided information on the source and the scope of the use of this foreign exchange.  She added thatAlbanian individuals were allowed to carry out of the territory of the Republic of Albania in cash or
traveller's checks the amount of US$ 10,000  or its equivalent in any other foreign currency.
Individual foreign citizens that visit or stay temporarily in Albania could carry out of the territory of
the Republic of Albania foreign exchange in cash or traveller's checks an amount equal to the amount
declared when they entered into Albania which could be verified by the declaration mentioned in the
previous paragraph.  Albanian importers and expo rters who were physical or juridical persons were
not allowed to carry out of the territory of the Republic of Albania "in the customs border" theamounts in cash or traveller's checks equal to or more than US$ 25,000 or its equivalent in any other
foreign currency(ies).  Individuals, juridical and physical persons, Albanian or foreign, could not carry
out of the territory of the Republic of Albania more than 100,000 lek per person denominated in
Albanian banknotes or coins in circulation.  The representative of Albania further added that there
were controls on capital transactions which were imposed mainly on capital outflows, but only thosemade by residents.  There were no capital controls on non-residents' transactions or on foreign
investors in Albania.
Investment Regime
18. The representative of Albania said that the Government promoted private sector investment,
foreign and domestic, with a view to achieving diversification by gradually reducing dependence onagriculture as the dominant source of income by promoting the development of manufacturing,
fisheries and tourism and other services.  Other investment objectives included job creation for the
expanding local workforce, gaining access to foreign markets through foreign private-sector
marketing channels,  and foreign equity participation in large, capital-intensive projects.  Repatriation
of capital and profits was allowed freely.  In re sponse to questions concerning the application of
national treatment and most-favoured-nation treatment to foreign direct investment, he added that theWT/ACC/ALB/51
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Law No. 7764 "On Foreign Investment" provided equi table and fair treatment to foreign investors.
Except the right to buy agricultural land which was provided only to Albanian nationals, national
treatment and most-favoured-nation treatment were accorded to foreign direct investment. Foreigners
could in certain conditions lease agricultural land up to 99 years, but they cannot buy agricultural land
in Albania.  Article 8, (points 1 and 2) of Law No. 7764 "On Foreign Investment" provided for theright to impartial dispute settlement. According to this Article, foreign investors had the right to
choose the domestic appeal procedures as well as international procedures.
19. The representative of Albania confirmed that according to the new Law "On Income Taxes", No.
8438 dated 28 December 1998, equal treatment is given to all persons, being individuals or firms, in
regard to their personal or company taxes, and that this applies to Albanians and foreigners in a non-
discriminatory manner.
State Ownership and Privatization
20. Some members of the Working Party requested details concerning progress in Albania's
privatization program and plans to retain State ownership in enterprises or sectors.  Further questions
addressed relations between the State and company management, the application of competition
legislation to State-owned enterprises, enterprise transformation provisions in Albanian legislation
and general or exclusive funds available for State-owned enterprises.  A member requested a report on
enterprises remaining in Government hands, the nature of goods they consumed, exported or
distributed; and a report on plans, as appropriate, to complete the privatization process.  A member of
the Working Party asked for a clear statement from Albania on the right of competing firms to
establish in the banking and telecommunications sectors.  To ensure full transparency, Albania wasasked to keep WTO Members informed about progress in privatization, and provide periodic reports
on developments in privatization and economic reform issues as relevant to its obligations under the
WTO.
21. In response the representative of Albania said that the main objectives of privatization were to
provide long-term economic development, improved economic efficiency, increased effectiveness ofmarket efficiency through the promotion of competition and continued deregulation, and the attraction
of foreign capital to important sectors of the Albanian economy, including the strategic sectors (e.g.,
oil and gas, banking, telecommunications, utilities, mining and transport).  She added that Albanian
law permitted the right of competing firms (domestic or  foreign) to establish in each of these sectors.
The privatization of strategic enterprises was carried out in three stages – a preparatory stage, a
promotional stage, and a decision-making stage.  The privatization process was conducted on a case-
by-case basis and therefore enterprises were at different stages in the process.  The Council ofMinisters approved the decisions resulting from approved laws and adopted the final decision on the
privatization of an asset or enterprise.  The Ministry of Public Economy and Privatization was the
institution responsible for the economic policy of privatization and decided on which assets or
companies were to be included in the privatization programmes.  The National Privatization Agency
was the body responsible for implementation of the process of privatization from the technical pointof view.
22. She further noted that Article 7 of the Law "On the Privatization Strategy of Sectors of Primary
Importance", stated that the privatization of the strategic sector would be accomplished with the
participation of strategic investors, to whom would be offered not less than 30 per cent of the shares.
The privatization process of all strategic sectors was opened to foreign capital participation, and ineach case, there was foreign participation.  With reference to the privatization methods and the
formulas for the strategic sectors, the representative of Albania said that the strategic sectors of the
economy would be transformed into commercial enterprises.  In the implementation of privatization,
three kinds of rights were transferred to the private sector: the right of ownership, the right of
exploitation and the right of development.  The partial or total transfer of the ownership right wasapproved on a case-by-case basis by the Council of Ministers.  In each case it was necessary toWT/ACC/ALB/51
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determine the shares to be held by the State, the shar es to be held by the strategic investor(s), and the
possible participation of the vouchers.  The parts of shares to be held by the State would be specific
for different sectors. The State would maintain ce rtain control over the enterprise only regarding
issues related to public and strategic interest and not for the day-to-day operations.  For partial or total
transfer of the right for exploitation and devel opment method, Albania applied management contracts,
leasing arrangements, concession contracts, etc. as a precondition for the transformation of State-
owned enterprises into commercial companies.  The State would transfer the development rights for
the exploitation of natural resources such as oil, gas, minerals, water, etc.
23. The strategic sectors that were privatized consisted of banking, telecommunications, electro-
energetic sector, oil and gas, mining sector, transport and water supply for the population.  The State
part of the Albanian banking sector was composed of three main banks: the Rural Commercial Bank
(RCB), the National Commercial Bank (NCB) and the Savings Bank (SB).  Bank privatization wasunderway with some major deals to be completed in 2000, including the National Commercial Bank
and the Savings Bank.  In the oil and gas sector, full restructuring of ALBPETROL had been
completed through the establishment of a holding company (Albanian Petroleum Corportation, APC)
and three subsidiary companies: ALBPETROL, involved with upstream operations; ARMO, involved
with downstream operations; and SERVCOM, for petroleum services. ALBPETROL’s activitiesincluded research-extraction, processing-marketing and special service branches.  For the mining
sector, the Government of Albania made considerab le progress with the parliamentary approval of
legislation authorizing the privatization procedures.  ALBCOPPER and ALBCHROME were
restructured. ALBCOPPER was privatized with its transformation into a joint-stock company and
with a recent concession contract concluded wi th a foreign company. Legislation supporting
ALBCHROME’s privatization called for the sale of  shares through an open international tender
process and the use of concession contracts.  Both forms of privatization were expected to proceed in
2000. The two main entities exercised their activity in the mining of chromium and copper, but there
were some other mines such as coal, iron-nickel, nickel-silicate, bauxite, etc.  Their activity was in
conducted according to the Law “On Mining”.  In order to develop this sector, it was of specialinterest to apply the form of transferring rights of exploitation and development rights, by using all
possible forms to attract foreign capital, such as self-financing projects as well as other concessionaire
forms. In addition, 66 small chromium mines and 15 small copper mines were privatized through
licensing arrangements with private operators.  For those mines in which investors expressed no
interest, the mines were either liquidated or the assets were sold.  In the energy sector, the
Government undertook important legislative efforts in 1999. The electro-energetic system was
composed of three main elements (production, transmission, distribution) and was represented by theAlbanian energy corporation (KESH), a joint- stock company. KESH, was currently under an
operational and financial restructuring process. A foreign company would provide management
assistance to KESH until 2002.  Under consideration was a restructuring process that would separate
the company into two companies, one that generate s and transmits energy and the other that performs
the distribution activities.  For small, local hydro- electric power plants (those producing less than 2
MW) the government was preparing the legal framework for their privatization.  For water supply
companies the Strategy of Privatization called for managing or concession contracts.  The legislation
for this purpose was drafted and most of the water supply enterprises were converted into joint-stock
companies. There were 50 water enterprises supplying water to the population.  In the transportation
sector, including seaports, privatization involved the transformation of State enterprises into joint-stock companies.  The telecommunications sector included the activities of the State-owned
enterprise, TELECOM, as well as the joint-stock company AMC (Albanian Mobile Corporation). The
laws for privatizing this sector included: the Law “On Telecommunication in the Republic of
Albania” and the Law on “Regulatory Entity of Telecommunications”.   Due to the events in Kosovo,
the privatising of AMC (Albanian Mobile Telecom) had been delayed.  However, in 2000, theprivatization of telecommunications was proceedi ng rapidly with AMC having been sold. For
ALBTELECOM, the government was preparing the privatization procedures assisted by a program
financed by the World Bank with the aim of preparing the company for sale by the end of 2000.  Only
air transport, ports and railways were considered as strategic sectors within the transport sector.WT/ACC/ALB/51
Page 10
Albtransport and Air Traffic National Agency (ATNA) were the main players.  These enterprises
were involved in the reconstruction project of Rinas Airport.
24. According to the Strategy of Privatization, a program had been compiled for preparing the
privatization of strategic sectors, in agreement with the World Bank and European Bank for
Development and Reconstruction.  This agreement was supported financially by these institutions.There were five foreign trade State-owned enterpri ses involved in the process of privatization and
transformation into commercial companies:  (i) Enterprise of Agroeksport Tirane, (ii) Enterprise of
Industrialimpeks Tirane, (iii) Enterprise of Arteksportimport Tirane, (iv) Enterprise of
Makinaipmpeks Tirane, (v) Enterprise of Albkoopi Tirane.  They were divided into two groups,
according to the form of privatization: those enterprises prepared for direct privatization
(Makinaimpeks Tirane and Albkoop Tirane), and those enterprises that were to be transformed into
joint-stock companies (Agroexport Tirane, Industrialimpeks Tirane , and Artexport Tirane).  The legalframework for privatization had been approved by Amendment No. 8237 of the Law “On
Transformation of the State Owned Enterprises into Commercial Companies” and the Decision of the
Government No. 192 dated 20 March 1998 “On Estimation of the State Owned Property to be
Privatised and the Procedures of Selling”.
25. Concerning the right of competing firms to establish in the telecommunications and banking
sectors, the representative of Albania noted that it had achieved greater liberalization in the
telecommunications sector.  In Albania data communication services, including internet access and
VSAT networks, value-added services and paging services were fully open to competition.  For those
services a general licence was needed.  The number of licenses granted was unlimited.  Independent
rural telephone networks were already authorized by the Law entitled "On some Changes on the Law
No. 8083 dated November 1996" dated February 1998. To provide this kind of service, a licence was
needed. The number of licenses that would be limited to service providers was unlimited.  The
number of terrestrial mobile telephony operators was defined by a Decision of the Council of
Ministers No. 288 dated 18 June 1999.  Licensing procedures for a second mobile operator had started
and a second licence was expected to be issued in July 2000. Individual licensing would be donethrough an international tender.  Urban, long distance and international telephony services provided
over fixed network would be open to competition by 2003.
26. Some strategic agribusiness enterprises had not been privatised, i.e. some of the enterprises of the
water supply system, the enterprise of the seeds and agricultural inputs, the scientific development
institutions related to the agricultural system. About 95 per cent of all agricultural and food
production was from the private sector.  In the framework of economic reform for transformation of a
centralised economy into a free market economy, the privatization procedure of State-ownedenterprises in the agricultural field had proceeded through three stages.  The first stage (from
November to December 1992) had began the privatization of the agricultural land from 79 agricultural
enterprises; the second stage (from April 1993 to the present) had involved the privatization of
agricultural enterprises and assets; and the third stage (from October 1993 to the present) had involved
the privatization of dairy complexes.
27. Concerning the privatization of food enterprises, the representative of Albania noted that they had
undergone three stages: the first stage (from 1992 to April 1993) had involved the privatization of
bakeries, dairy processors, factory lines for producing alcoholic drinks and other beverages, and other
assets (1,000 assets in total); the second stage (from May 1993 to February 1994) had involved the
sale of 1,300 small and medium sized enterprises; and the third stage (from March 1994 to thepresent) had involved the privatizing of 6,000 assets.
28. The representative of Albania confirmed that there were 80 enterprises and assets currently in the
process of privatization.  For all 80 remaining enterprises and assets in the process of privatization all
the necessary documents had been prepared and submitted to the National Agency of Privatization for
sale through auctions.  The number of employees in these enterprises by June of 1999 had been onlyWT/ACC/ALB/51
Page 11
250 persons.  After 1997, the legal framework of privatization had been improved by Amendment No.
8237 of the Law on "Transformation of State-owned Enterprises into Commercial Companies" and a
Decision of the Council of Ministers, No. 192 dated 20 March 1998 "On Estimation of the State-
owned Property to be Privatized and the Procedures of Selling".  There were eight limited liability
agribusiness food companies that were involved in production of goods such as dairy, cigarettes, andwine.  It was foreseen that with their consolidation they would be privatized.  In 1998, five of these
enterprises had been put forward for privatization but none of them were sold.  Restructuring of these
enterprises was presently on-going to improve the sale of these enterprises.  For non-privatized assets,
a leasing arrangement was to be applied.
29. The total number of State enterprises covered by the Central Agency for Restructuring and
Privatization had been 341 and included about 70,000 assets to a total value of 5 billion lek.  Only
300 assets had remained (by the end of June 1999) non-privatised and it was foreseen that all of themwould be privatised within 1999.  According to th e Law “On Privatization of Commercial Enterprises
Which Function in Non-Strategic Sectors” the privatization of these enterprises would be made by
auctions which would be organized by the National Agency of Privatization or by tender open to
foreigners. The 300 assets were in rural areas and include mostly stores and warehouses all of which
are semi-destroyed and/or abandoned.  There was no economic activity performed with these assets.The total number of the enterprises with State-owned capital was 469.  They were divided according
to the type of entity as follows: State enterprise for sales of assets 255, State enterprises under the
procedure of transformation 67, companies with 100 per cent State capital 29, companies with State
capital less than 100 per cent 15, and 103 joint venture companies.  In 1998, the procedure of
transformation and privatization had started with 332 objects and up to now 194 objects wereprivatised.  The procedures of privatization of State enterprises that represented 297 objects continued
during 1999.  Privatization was an ongoing process and Albania would continue to provide new data
in the future.  In response to further questions, the representative of Albania provided the following
tables detailing the current status of the privatization program.
Table 1.  State-Owned Enterprises, by Sector, 1991 and 1998*
Number of Enterprises
Left to be Privatized
1991** 1998Deadline for privatization or
expected completion
Service and trade 623 48 End of 1999
Agriculture 365 93 End of 1999
Food processing 292 41 Second half of 1999
Construction and construction materials 247 31 Second half of 1999
Transportation 142 56 After 2000
Miscellaneous (pharmaceuticals, education) 107 49 Second half of 1999
Wood and paper 98 29 Second half of 1999
Handicraft production 89 10 Second half of 1999
Mechanic industry 85 31 Second half of 1999
Textiles and clothing 60 23 Second half of 1999
Tourism 44 1 Second half of 1999
Typography 29 4 Second half of 1999
Chemical and plastics industry 28 20 Second half of 1999
Metallurgic industry 14 5 Second half of 1999
Leather industry 12 4 Second half of 1999
Oil and gas 69 4 End of 2000
Mineral industry 66 17 First half of 1999
Energy 64 4 End of 2000
Telecommunications 2 2 2000
Total 2,436 472WT/ACC/ALB/51
Page 12
Notes:
* Data are not available for a year-by-year presentation.
** The data in 1991 have been aggregated in such a manner that they are consistent with those from 1998.  For
example, the postal enterprise for each region was counted as a separate state-owned enterprise in 1991;
however, for the purposes of privatization, the postal enterprise has been converted into one in the 1998 data.1. This table does not include a few service enterprises and firms owned by the Ministry of Defense whichproduce military equipment.  These are not subject to privatization.2. Some of the enterprises have been entirely r econstructed and now belong to the strategic sector.
3. The privatization of the strategic sectors has not started yet and shall be performed.
4. From the above tabled enterprises, about 40 non-strate gic, small enterprises are excluded from the process of
privatization in compliance with the request for order, health and other social enterprises.  These provide uniquestate services and are not involved in commercial activities.
Table 2.  Production of Goods and Services by State-Owned Enterprises, by Industry
(Million Leke)
1992 1993 1994 1995 1996 1997 1998
Production of Goods 14,852.9 21,268.2 20,69 3.8 25,728.7 27,864.3 24,112.3 24,142.8
Oil: Albpetroli 5,402.2 7,933.8 9,154.6 11,093.6 9,873.5 9,611.0 10,886.9
Electricity: KESH 2,116.9 2,870.5 2,885.1 4,433.3 11,231.0 8,648.1 7,753.1
Mining: 3,452.6 4,662.6 4,286.1 6,888.6 4,599.7 3,663.1 3,293.4
    Chromium:
Albchromium1,578.3 2,377.3 2,547.2 4,761.7 3,286.6 3,434.1 2,854.5
    Copper: Albcopper 1,342.8 1,660.4 1,199.4 1,642.6 972.4 112.9 296.7
    Coal 531.5 624.9 539.5 484.3 340.7 116.1 142.2
Other industries 3,881.2 5,801.3 4,368.0 3,313.2 2,160.1 2,190.1 2,209.4
    Metallurgy 342.8 685.8 858.2 974.5 1,079.2 1,111.9 1,119.3
    Mechanics 513.2 811.5 837.0 587.0 82.6 66.3 80.5
    Polygraphs 164.9 345.9 321.9 298.3 57.0 77.7 184.9
    Chemicals, glass,
porcelain, rubber645.1 1,085.4 820.0 495.4 407.3 320.7 207.6
    Textiles and clothes 1,390.1 1,739.0 758.7 303.5 297.8 301.5 315.3
    Leather and shoes 350.6 85.5 225.5 300.5 290.4
    Wood and paper
products521.2 811.3 280.0 465.2 10.7 11.5 11.4
    Arts and crafts 303.9 322.4 141.6 103.8
Production of Services 77.9 2,216.4 2,632.0 3,294.1 5,038.2 6,331.4 6,213.9
Postal enterprise 77.9 192.3 253.0 340.8 570.4 701.1 547.9
Telecommunications 2,024.1 2,379.0 2,953.3 4,192.8 4,932.3 4,661.1
Albanian Mobile
(phone) Company275.0 698.0 1,004.9
Gross Domestic Product 50697 125334 184393 229793 280998 341716 456766
Table 3.  The Contribution to GDP by State-Owned Enterprises, by Industry
1992 1993 1994 1995 1996 1997 1998
Contribution by Sector: Percentage Share of GDP
Total Contribution in the
Goods Sector29.3 27.5 11.2 11.0 9.7 6.9 5.1
Oil: Albpetroli 10.7 6.3 5.0 4.8 3.5 2.8 2.4
Electricity: KESH 4.2 2.3 1.6 1.9 4.0 2.5 1.7
Total from mining
industries:6.8 3.7 2.3 3.0 1.6 1.1 0.7
Chromium:
Albchromium3.1 1.9 1.4 2.1 1.2 1.0 0.6
Copper: Albcopper 2.6 1.3 0.7 0.7 0.3 0.0 0.1WT/ACC/ALB/51
Page 13
1992 1993 1994 1995 1996 1997 1998
Contribution by Sector: Percentage Share of GDP
Coal 1.0 0.5 0.3 0.2 0.1 0.0 0.0
Total of other industries 7.6 4.6 2.3 1.3 0.6 0.5 0.3
Metallurgy 0.7 0.5 0.5 0.4 0.4 0.3 0.2
Mechanics 1.0 0.6 0.5 0.3 0.0 0.0 0.0
Polygraphs 0.3 0.3 0.2 0.1 0.0 0.0 0.0
Chemicals, glass,
porcelain, rubber1.3 0.9 0.4 0.2 0.1 0.1 0.0
      Textiles and clothes 2.7 1.4 0.4 0.1 0.1 0.1 0.1
      Leather and shoes
      Wood and paper
products1.0 0.6 0.2 0.2 0.0 0.0 0.0
      Arts and crafts 0.6 0.3 0.1 0.0 - - -
Contribution of Selected Services
Postal enterprise 0.2 0.2 0.l 0.1 0.2 0.2 0.1
Telecommunications - 1.6 1.3 1.3 1.5 1.4 1.0
Albanian Mobile
(phone) Company0.1 0.2 0.2
The privatization process was preceded by serious restructuring efforts, involving the separation of
fringe activities that could be sold independently from the core business.  In Table 4, the status of
privatization is presented for strategic and non-strategic enterprises.WT/ACC/ALB/51
Page 14
Table 4.  The Status of Privatization in the Strategic and Non-Strategic Sectors, by Industry
SectorStage of
PrivatizationExpected
CompletionLegislation
Defining
ProceduresLimitations on Competition
in the Industry
Strategic sector:
Banking
• Rural Commercial
Bank
• National
Commercial Bank
• Savings BankInitial stage
Final stageIntermediate
stageNot yet
defined.
2000
2001-2002The legislation
for NCB hasbeen approved;the strategy forthe SB has been
drafted and the
plan RCB wasbeing drafted.There were no limitations
on the number of operatorsinvolved in the bankingsector.  Foreign banks havealready been established in
Albania.
Oil and gas Initial stage 2000-2003 Legislation was
approved.There were no limitations
on the number of operatorsinvolved in upstream or
downstream activities for
providing petroleumservices.
Mining Final stage 2000 Legislation was
approved.There were no limitations
on the number of operators.
Energy Pre-initial stage Not defined. Draft legislation
was pending.There were no limitations
on the number of operators.
Water supply Case-by-case;
some were inthe pre-initial
stage and others
in the finalstage.Not defined as
it was done ona case-by-case
basis for the
50 enterprises.Legislation has
been approvedfor some regions
and has not yet
been drafted forother regions.Water in each region will be
supplied by the regionalsupplier.
Transport
• Airport
• Seaports
• RailroadPre-initial
stage.Not defined. Legislation had
not yet beendrafted.For airport services there
will be a limited number ofoperators.  There were nolimitations on competition
for the following seaport
services: pilotage; towingand tug assistance;provisioning, fueling andwatering; garbage collectionballast waste disposal; port
Captain's services;
navigational aids; shore-based services essential toshop operations; emergencyrepair facilities; anchorage,
berth and berthing services.
For the other sectors,limitations on competitionwere not defined.WT/ACC/ALB/51
Page 15
SectorStage of
PrivatizationExpected
CompletionLegislation
Defining
ProceduresLimitations on Competition
in the Industry
Telecommunications
• AMC
• AlbtelecomFinal stage.
Initial stage.2000
2001Legislation was
approved.Legislation wasbeing drafted
and approval
was expected in2000.There was limited
competition in basictelecom services; othertelecom services (e.g., data
transmission, internet,
paging) had no limitationson the number of operators.
Non-strategic sector:
Remaining industries
(agribusiness and
pharmaceutical)Final stage for
the four
remainingfirms.2000 Legislation was
approved.There were no limitations
on the number of
enterprises in operation.
30. The representative of Albania confirmed her country's readiness to ensure the transparency of its
ongoing privatization program and to keep WTO Members informed of its progress in the reform of
its transforming economic and trade regime. The representative of Albania stated that her Government
would provide annual reports to WTO Members on developments in its program of privatization as
long as the privatization program would be in existence along the lines of that provided to the
Working Party.  She also stated that her Government would provide annual reports on other issuesrelated to its economic reforms as relevant to its obligations under the WTO.  The Working Party took
note of these commitments.
Pricing Policies
31. Some members of the Working Party requested information on the process of price liberalization
in Albania and the extent of any remaining controls on prices for goods and services.  Albania  wasrequested to provide a description of existing price controls;  list the products by HS tariff line with
reference to the legal provisions under which controls were applied; border charges that would
increase import prices;  and the conditions under which the authority to control prices was to be
exercised.  The representative of Albania said that price controls had been eliminated for goods.  For
pharmaceutical products (medicine), the government set a reference price for each of the 278pharmaceutical products listed in the INN.  The reference price for each medicine was computed as
follows: reference price equals the lowest CIF import price plus a wholesale margin of 12 per cent
plus a retail margin of 27 per cent).  The reference price was the price upon which reimbursement to
the retailer was based.  The consumer paid a co-payment, which was a specified percentage of the
reference price, and the State Health Care Insurance Institute paid the remainder of the payment.  Thereimbursement list and the lowest import price was published once a year (prior to the end of the first
quarter of the year) stating the percentage of the reference price the consumer was required to pay.
This list was disclosed to the consumer at all retail outlets.  The reference price and reimbursement
scheme was based on the Law on "Health Insurance", No. 7870 dated 13 October 1994.  For
medicines that had a higher price relative to the reference price, the consumer was required to pay the
additional expense over the reference price.  Retail prices of these medicines on the INN list were not
directly affected.  The category of drugs which were subject to the reference price was as follows:acidum ascorbicum; acidum valproicum; aluminii hydroxydum; aminophyllinum; amoxicillinum;
ampicillinum; aqua bidestillata; atropini sulfas; beclometasonum; betamethasonum; calcii folinas;
captoprilum; carbamazepinum; chlorambusilum; chloramphenicolum; chlorpromazinum;
clonazepamum; desmopressinum; diazepamum; erythromycinum; fluphenazinum; furosemidum;
gentalmuicinum; haloperidolum; hydrocortisonum; hydroxocobalaminum; ibuprofenum;indometacinum; insullinum; isoniazidum; isos orbidi dinitras; levodopum + benserazidum;
levothyroxinum natricum; medroxyprogesteronum; melphalanum; metamizolum; meoclopramidum;
metronidazolum; morphini hydrochloridum ; nystatinum; papaverini; paracetamolum;WT/ACC/ALB/51
Page 16
phenobarbitalum; phenoxymethylpenicillinum; phytomenadionum; pilocarpini hydrochloridum;
prednisolonum; pyridoxinum; rifampicinum; sal butamolum; sulfamethoxazolum + trimethoprimum;
testosteronum; thiaminum; tetracyclinum; thioridazinum; timololum; trihexyphenidylum; and
verapamilum.  The co-payment by the State on these drugs ranged from 38 per cent to 99 per cent of
the cost of the drugs.  The representative of Albania provided the Working Party with a completelisting of products subject to price controls, including, where appropriate, HS numbers, in document
WT/ACC/ALB/25.
32. Concerning price controls on the services sector, the representative of Albania also noted that
electricity, water, and transport services were subject to price controls.  Full details of the price
controls applied were provided to the Working Party in document WT/ACC/ALB/25.  The pricing of
electrical power was controlled.  Rates were set according to different categories as follows:  (i)
residential households, (ii) main sectors of the economy, (iii) other producer entities, (iv) servicessector providers and (v) wholesale rate for State institutions.  The rates on drinkable water were
applied by the water supply stations according to different types of users of water.  The rates were set
according to a similar scheme.  Public transportation rates were set for some modes of internal
transport.  For example, railroad passenger transportation was not liberalized.  However, rail cargo
rates were liberalized.  For bus transportation, urban and inter-urban passengers rates were set by thegovernment.  Other modes of transportation had liberalized rates. For price control on
telecommunications services, the following applie s. Operators providing services under monopoly
conditions will be subject to tariff regulation based on a price cap mechanism.  The price cap ensures
that the price for basic telephone services remains affordable while being gradually adjusted to reflect
more accurately costs of provision.  For Albtelecom (the operator defined as with relevant marketpower), the price cap will apply to all elements of basic telephones services.  The price for
communications services other than basic telephone services are not subject to price control.
33. In response to further questions, the representative of Albania stated that Albania did not have any
other legal authority for the application of price controls, and does not contemplate to use such
controls in the future.  When the electricity sector and water works are privatized, price controlswould be lifted.  Inter-urban and urban transportation will be liberalized as the standard of living of
the population improves.
34. The representative of Albania confirmed that prices for goods and services in Albania, other than
for the items listed in paragraphs 31-32 above and in document WT/ACC/ALB/25 were not subject to
any price controls or reference prices. She confirmed that Albania would apply its current price
regulation system and any other state-mandated prices or price controls applied from the date of
accession in a WTO-consistent fashion, and would take account of the interests of exporting WTOmembers as provided for in Article III.9 of the GATT 1994.  Albania would publish the list of goods
and services subject to State pricing or price controls in its Official Journal, including any changes in
the list provided in WT/ACC/ALB/25 of current requ irements in place.  The Working Party took note
of these commitments.
Competition Policy
35. Some members of the Working Party requested information on Albania's competition policy,
including the agreements restricting competition and whether and in which form reorganisation plans
provided for in Chapter III of Law No. 8017 "For Bankruptcy Procedures" involved, directly or
indirectly, any financial support from the State.  In response, the representative of Albania said that
the reorganization plans provided for in Chapter III of the Law “On Bankruptcy Procedures” did notinvolve any direct or indirect financial support from the State.  Additional competition legislation was
under preparation.WT/ACC/ALB/51
Page 17
FRAME WORK FOR WORKING AND ENFORCING POLICIES
Power of the executive, legislative and judicial branches of government
36. The representative of Albania said that according to Law No. 8417 dated 21 October 1998 “On
the approval of the Constitution of the Republic of  Albania” and Articles 121-123 of the "Constitution
of Albania", the accession of Albania to the WTO would be ratified by a special law in the AlbanianParliament.  The Council of Ministers Decision No. 492 dated 29 July 1998 had approved the setting
up of the Albanian Secretariat for Co-ordination of Relations with the WTO and the Albanian
Negotiators Group, which was composed of the members of all ministries and institutions related to
WTO issues.  Based on the Law No. 8371 dated 9 July 1998 “On Concluding of International Treaties
and Agreements”, all agreements accepted by the Government of Republic of Albania , were
approved in principle by the Council of Ministers, and the authority on discussions and signing was
the competence of the Prime Minister.  The Council of Ministers Decision No. 749 dated27 November 1998, “Strategy on the Third Round of Negotiations for the Accession of Albania to the
WTO”, had approved the Albanian Offer on Goods and Services.  She further added that specific
legislation required to fully implement WTO provisions was passed separately and would be in force
by the time of accession.  The ratification of the special law would take place according to Articles
121 and 122 of the Constitution, Chapter II "International Agreement".  She further noted thatratification and denunciation of international agreements by the Republic of Albania was lawful if
they have to do with (a) membership of the Republi c of Albania in international organizations (Article
1212, 1/c) and (b) the undertaking of financial obligations by the Republic of Albania (Article 121,
1/d).  According to Article 122 of the Constitut ion of Albania, Chapter II of "International
Agreements", in the event of conflict between an inte rnational agreement that has been ratified by law
and any domestic Albanian law, the international agreement prevailed to the extent of the conflict
(Article 122/2), (Article 122/3).  She noted that accordingly it would not be necessary to repeal
conflicting laws and regulations to ensure enforcement of the WTO Agreement.
Division of authority between central and sub-central governments37. In response to questions concerning the sub-central governments’ authority to enact measures
covered by the WTO Agreements, and the authority of the Government to override decisions by sub-
central authorities that conflict with WTO provisions, the representative of Albania said that as part of
the trading system, foreign trade policy was under the jurisdiction of the Ministry of Economic Co-
operation and Trade, as well as of all related ministries.  Implementation was carried out by the
relevant ministries and institutions of the public sector in Albania.  The Albanian Secretariat for
Relations with the WTO, was the structure responsible for supervising the implementation of allcommitments resulting from the accession of Albania in the WTO, and exercising the rights derived
by such membership.  The members of the Albanian Negotiators Group were responsible for
fulfilling, within the ministries’ structure, the implementation of the accession obligations.  She
further added that Albania's sub-central authorities could not enact measures on issues subject to
WTO Agreements, e.g., taxes, fees, and price contro ls applied to imports, investment requirements,
subsidies or any other measure.  Sub-central authorities could also not enact measures on issues
subject to WTO Agreements.
38. The representative of Albania confirmed that sub-central entities had no autonomous authority
over issues of subsidies, taxation, trade policy or any other measures covered by WTO provisions.
She confirmed that the provisions of the WTO Agr eement, including the Albanian Protocol, would be
applied uniformly throughout the customs territory of Albania and other territories under its control,
including regions engaging in border trade or frontier traffic, special economic zones, and other areas
where special regimes for tariffs, taxes and regulations were established.  She also stated that the
central authorities would eliminate or nullify measures taken by sub-central authorities in Albania that
were inconsistent with WTO provisions from the date of accession.  She further stated that if theGovernment of Albania was informed of a specific  situation where WTO provisions were not beingWT/ACC/ALB/51
Page 18
applied or where applied in a non-uniform manner, central authorities would act to enforce WTO
provisions without requiring affected parties to petition through the courts. The Working Party took
note of these commitments.
Description of Judicial, Arbitral or Administrative Tribunals
39. In response to further questions from members of the Working Party concerning the
administrative appeals process for customs and other issues covered by WTO provisions and the right
of appeal to an independent tribunal, whether or not  judicial, by traders, the representative of Albania
said that in Albania there were three levels of appeal within the judicial system.  The first level was
composed of Court of First Instance,  which function in all districts of Albania.  These had relevant
sections for different complaints (penal, civil, administration, family section, etc.).  The second level
consisted of the Appeals Court , with branches in five districts in Albania, having under their
jurisdiction the relevant territory defined by the Law approved by Parliament. The third levelconsisted of the appeal to the Supreme  Court , with its centre in the capital of Albania.  This Court was
composed of three colleges:  Penal, Civil and Administrative, which were responsible for reviewing
and analysing complaints by relevant areas.  The Constitutional Court was the Head of the judicial
system, which guaranteed the primacy of the Constitution of the Republic of Albania, and was the
final interpreter of and was subject only to the Constitution.
40. In response to further questions the representative of Albania stated that the Customs Code of the
Republic of Albania, Law No. 8449 dated 27 January 1999, Articles 19, 20 and  289, set out the
process by which an aggrieved party could appeal a decision of the Customs.  If a trader did not agree
with a customs administrative decision, he or she could appeal to the regional Chief of the Customs
Office.  A subsequent appeal could be made with in ten days from the day of notification to the
General Directorate of Customs.  The Director General was required to take a decision within 20 days
from the date the appeal was received.  In the event the Director General of Customs does not reply
within this term, the request shall be presumed to have been accepted.  According to Article 289,
which relates to verification of customs valuations, if the Director General rejected the appeal, the
trader could take the appeal to the courts, pursuant to the procedures set out in the Civil Code of the
Republic of Albania and the Code of Civil Procedures.  The complaint against an administrative
decision was made to the Administrative Division of the Court of First Instance.  Parties had the right
to appeal the administrative decision of the Court for First Instance to the Appeals Court.  Such an
appeal was required to be reviewed by the Administrative Division of the Court of Appeals.  Finally, a
final appeal could be made to the Supreme Court.  Its decision was final.
41. Concerning appeals from other types of administra tive decision, a trader could appeal to the head
of the administrative office.  If the appeal was unsuccessful, the trader could appeal to the GeneralDirector of the administrative body within the applicable Ministry. A third appeal at the
administrative level could be made to the Appellate Committee.  In addition, the trader could go to the
Court system described in the preceding paragraph.
POLICIES AFFECTING TRADE IN GOODS
Registration Requirements For Trading
42. In response to questions the representative of Albania stated that there were no State-trading
enterprises as defined by Article XVII of the GATT 1994, because previous monopoly on import and
export activities enjoyed by certain enterprises had ended in 1991 with the passage of the Law “On
State Enterprises”.  From 1991 all enterprises in Albania had acquired the right to import and export
freely in accordance with the principles of a market-based economy.  Amendments to the Law “OnState Enterprises” after 1991 had transformed the remaining State enterprises into commercial or
share-holding companies for privatization and asked whether, all enterprises, public or private, had
the right to import or export and to purchase an d sell goods on the international market withoutWT/ACC/ALB/51
Page 19
respect to origin.  She further added that in accordance with Law No. 7638, "On Commercial
Companies" dated 19 November 1992 following registra tion with the Court of First Instance and the
local Tax Office, all enterprises could engage in international trade.
43. The representative of Albania confirmed that the former state foreign trade monopoly had been
abolished and that no restrictions existed on the right of foreign and domestic individuals andenterprises to import and export goods within Albani a's customs territory, with the exception that the
importation and exportation of goods under licence could be undertaken only by registered firms, and
with the exception of a requirement to register for the right to engage in a trading activity listed in
document WT/ACC/ALB/35/Rev.1 - Memorandum  on Import Licensing and Prohibition on
Importable Products. In her opinion, the requirement to register for the right to engage in a trading
activity was consistent with the WTO Agreement.  Th e requirement to register for the right to engage
in a trading activity did not restrict foreign participation as they applied equally to foreign anddomestic businesses.
44. The representative of Albania noted that all importers had to be registered with the Court of First
Instance to become a natural or juridical subject and with the proper Tax Office. After the individual
or firm was established and registered with the Court, the Tax Office provided them with a Certificate
of Exercising an Activity which was at the same time an identification number for tax purposes.  If thefollowing conditions held, i.e., when:
(a) the annual turnover was more than 5 million lek; and/or
(b) the individual or firm was going to be engaged in importing or exporting activities,
then the Tax Office would provide them with a second identification number which is used only for
VAT purposes.  If condition "b" was met, but not "a", then the individual or firm might choose to betaxed as a small business at a fixed amount or as a large business subject to the VAT and the profit
tax.  When a natural and juridical subject registered with the Tax Office, that subject was then
registered to engage in some trading activity(ies), i.e., import, export, transport, wholesaling and/or
other marketing activities. This applied to imported and domestic products in exactly the same
manner. The criteria for engaging in import and export trade in the restricted sectors were consistentwith generally applicable restrictions placed on trade in similarly domestically produced goods.  The
availability to register for the right to engage in a trading activity was not restricted nor was the
licensing applied to restrict imports, production, wholesale or retail trade in any product.
45. The representative of Albania further noted that the request for registration to the Court of First
Instance had to be directed by the responsible officers of the corporation or partnership.  The law
defined some general requirements such as the obligation to declare and register the type and terms of
the company's activity, the official trade name, th e headquarters, the object of the company, the
amount of basic assets, the date of  its statutes.  Different types of companies, had some additional
requirements, such as information on the composition of the company, shareholdings, the articles of
association and the names of directors etc..  The requests for registration had to be accompanied, in
the case of Limited Liability Companies and Public Companies, with the certificate of the depositor of
the funds, which result from the reimbursement of the basic part of the assets, or from signing sharesfor cash contributions.  In cases when an activity wa s subject to an official authorization, a copy of
this authorization would be necessary for registration.  The company was registered when its statutes
were  in accordance with the law and when all documents required by the law had been completed.
The law also provides that these provisions were equally applied to Albanian and foreign persons
establishing a branch or a representative office in Albania.
46. The representative of Albania confirmed that from the date of accession Albania would ensure
that its laws and regulations relating to trade in goods and all fees, charges or taxes levied on such
rights would be in full conformity with its WTO obligations, including Articles VIII:1XI:1 and III:2WT/ACC/ALB/51
Page 20
and 4 of the GATT 1994 and that it would also implement such laws and regulations in full
conformity with these obligations.  The Working Party took note of this commitment.
Import Regulations
Customs Tariff
47. The representative of Albania presented an initial offer for market access negotiations on goods in
May 1997 and submitted a revised offer for market access negotiations on goods in January 1999.  A
number of members of the Working Party entered into market access negotiations with Albania.  The
commitments agreed between Albania and members of the Working Party will be annexed to Part I of
the Protocol of  Accession of Albania which is reproduced in the Annex to this Report.
Customs Duties
48. In response to questions concerning the current status of "special duties" and Albania's Law “On
Development of the Priority Zones in Tourism”, No. 8163 7 November 1996 exempting goodsimported for investment from customs duties, the representative of Albania said that the Government
of Albania was committed to trade reform and to the maintenance of a liberal trade-regime. The new
Law “On  Customs Tariff Nomenclature”, No. 8477 dated 14 April 1999 was approved by Parliament.
The steps taken were to reduce the average tariff rates over the medium term, through reductions in
the number of tariff rate scales from five to three.  The aim of the changes was to create a simple andtransparent tariff structure with relatively low maximum tariff lowered from 30 to 20 per cent.  All
customs tariffs were ad valorem ; there were no products on which Albania applied specific or
combined duties.
Tariff Quotas
49. In response to questions from members of the Working Party the representative of Albania
confirmed that Albania had no tariff quotas.  With the adoption of the Customs Code on
15 May 1999, all tariff exemptions were provided in Article 199 and explained in Article 477-560 of
the Implementing Provisions of the Customs Code.  The Customs Code (Title VI, Chapter 1, Article
199, paragraphs 1, 2) outlined the conditions for all relief from import duties.  Paragraph 3 of Article
199 provided that relief from import duties could be permitted if provided for in bilateral ormultilateral agreements.
Other duties and charges
50. The representative of Albania confirmed that there were no other duties or charges on imports on
goods other than normal customs duties and fees and charges for services rendered.  Charges and fees
applied for services rendered had nothing to do with the importation of goods and so Albania bound
such charges at zero.  All other duties and charges were bound at zero.  She further stated that Albania
would not list any other charges in its Schedule of Concessions on Goods under Article II:1(b) orGATT 1994, binding such charges at "zero".
51. The representative of Albania stated that any other duties or charges applied to imports other than
normal customs duties and fees and charges for services rendered would be in accordance with WTO
provisions from the date of accession.  She further confirmed that Albania would not list any other
charges in its Goods Market Accession Schedule under Article II:1(b) of the GATT 1994, and would
bind such charges at "zero".  The Working Party took note of these commitments.WT/ACC/ALB/51
Page 21
Fees and Charges for Services Rendered
52. In response to questions from members of the Working Party, the representative of Albania
provided members of the Working Party with the foll owing table that listed the range of services and
activities, including fees for harbour use and consular services.
Table 5  The levels of harbour charges in the Republic of Albania
For each net ton of
ships registerTotal for each ship
The type of charges
Charges in US Dollars
1. Harbour charges on ships
(a) For ships that load and unload general goods(b) For ships that load and unload liquid goods(c) For freighters RO/RO and passenger freighters(d) For sportive ships, yachts
- up to 30 TRN
- from 31 up to 70 TRN0.4
0.6
0.35
15
30
2. Charge for the beacon
- for ships up to 200 TRN- for ships from 201 up to 500 TRN- for ships above 501 TRN0.10
2050
3. Charge on the formalities carried out by the healthauthorities, capiteniery and other authorities
- for ships up to 200 TRN
- for ships from 201 up to 500 TRN- for ships from 501 up to 2000 TRN- for ships from 2001 to 4000 TRN- for ships above 40010.25
100180210300
4. The ships that load water for export in places ou tside the harbour, pay harbour charges total US$300 for
each supply.
5. Foreign ships pay the harbour charges on hard currency, whereas the juridical and natural persons
registered in the Republic of Albania pay in hard cu rrency or Lek in a value equal to the harbour charges at
the prevailing exchange rates.
6. Harbour charges are paid at the first entrance of any Albanian harbour, independent of whether the ship will
go for other commercial transactions in other Albanian harbours during the same cruise.
7. Charges are not based on an ad valorem  basis.
The following Table lists the charges for consular services, including those charges by its consulates
overseas.
Table 6: Charges for Consular Services
Type of consular service charges Fee in $US or Leke
1. Charges for issuing of visas and other travel documents
(a) For issuing travel passports
(b) For issuing travel passports for diplomatic purposes
(c) Extension of the passport term by diplomatic groups(d) For entrance concession(e) Entrance concession issued by diplomatic groups(f) Visa for foreigners(g) Entrance in the territory of the Republic of Albania for foreigners who do not
a visa2000 lek
US$100
US$30
200 lek
US$30
ReciprocityReciprocityWT/ACC/ALB/51
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Type of consular service charges Fee in $US or Leke
2. Charges for issuing, verification and legalization of documents
(a) Any type of certification issued by missions for Albanian citizens(b) Any kind of certification issued by the missions for foreign citizens(c) Any type of attestation issued by the missions for Albanian citizens(d) Any type of attestation issued by missions for foreign citizens(e) Verification of documents by missions
(f) Legalization of documents for Albanian citizens by the Ministry of Foreign
Affairs(g) Legalization of documents by missions for Albanian citizens(h) Legalization of documents for foreign citizensUS$ 30
Reciprocity
US$30
Reciprocity
US$10
200 lek
US$30
Reciprocity
3. Charges for issuing and drafting of other notary acts and translation ofdocuments by the missions(a) Drafting of declarations, authorizatio ns, wills, contracts, guarantees and
special proxies by missions
(b) Certification of duplicates and copies(c) Translation of documentsUS$20/page
US$20/page
US$10/page
Note: The term mission refers to diplomatic or consular missions outside the country.  The fee may be paid also
in the local currency according to  the prevailing exchange rate.
53. In response to requests for clarification of the information contained in the preceding tables, the
representative of Albania stated that none of the consular fees listed were for authentications or
certification required for the importation of goods into Albania.  She also confirmed that the fees
listed in Tables 4 and 5 above were for services rendered and were the only fees or charges forservices applied to imports into Albania.  The representative of Albania stated that any duties and
charges other than ordinary customs duties and charges applied to imports after accession would be in
accordance with the provisions of the WTO Agreement.  The representative of Albania also stated
that, from the date of accession, Albania would not apply, introduce, or reintroduce customs or other
fees for "services rendered" that were applied to imports on an ad valorem  basis.  Fees applied for
import processing or other purposes on imports would be applied in conformity with WTO
obligations, in particular Articles VIII and X of the GATT 1994.  Information regarding the
application and level of such fees, revenues collected and their use, would be provided to WTO
Members upon request.  The Working Party took note of these commitments.
Application of internal taxes on imports
Excise tax
54. Some members of the Working Party referred to Law No. 7678 dated 3 March 1993 "On Excise
Taxes in the Republic of Albania" revised by Law No. 8247 dated 2 October 1997 "On some changes
to Law No. 7678" and to the new "Law on Excise Taxes", No. 8437 dated 28 December 1998 and
“On Some Changes in the Law On Excise Tax, No. 8437 dated 28 December 1998”, No. 8507 dated
7 July 1999.  They noted, however, that Albania's prop osed excise tax amendments left discriminatory
rates in place for the following products:  tobacco and cigarettes, soft drinks, mineral and carbonatedwater, alcoholic beverages and some petroleum by-products and that Albania had stated that it would
equalise the level of excise tax on foreign and domestic goods.  They asked Albania to submit a
comprehensive report on the scope, level, and status of its current excise taxes, listing the products
subject to these taxes by product and by HS number; to explain the method of excise tax calculation
for each product; to explain the steps to bring the discriminatory excise taxes into conformity withGATT 1994 Article III prior to accession, and the time table Albania had for taking such measures.
They also asked for information on Albania's plans to eliminate the tax level differences among
various distilled alcoholic beverages and cigarettes in conformity with the requirements of GATT
1994 Article III.WT/ACC/ALB/51
Page 23
55. In response the representative of Albania said that Albania had eliminated the discrimination in
excise tax rates between foreign and Albanian products in January 1999, according the Law on
“Excise Tax” No. 8348 dated 28 December 1998.  Sub-categories of excise taxes still existed;
however, within the Government of Albania, a professional commission with experts from the
Ministry of Agriculture and the Ministry of Finance, was in the process of defining suchsubcategories.  Albania confirmed that there was conformity with Article III of GATT 1994. The
calculation of the excise tax based on the transaction value plus customs duty was a simple way of
calculation suggested by the IMF, in order that the unification of excise taxes would not be
accompanied by budgetary implications.  On the other hand, the calculation of excise tax for domestic
products based on retail price without VAT and excise, was considered as a relatively hard measure
for those domestic industries, which were either degrading, or at the infant stage.
56. In response to further questions the representative of Albania stated that the new excise rates were
implemented by the Law on "Excise Taxes", No. 8437 dated 28 December 1998 (effective on
1 January 1999 - made available to members of th e Working Party).  Legi slation entitled "Some
Changes to the Law No. 8437 dated 28 December 1998" had been enacted as Law No. 8507 of
7 July 1999.  The law had entered into force on 10 August 1999, and had introduced the following
excise tax rates:
Table 7:  Excise Tax Rates
Harmonized
System CodeDescription of Item Rate of
Excise
( per cent)Tax per Unit
Chapter 24 Tobacco and Manufactured Tobacco Substitutes
24.03 Tobacco for consumption 60
24.02 Cigarettes 11 lek/pack
24.02.10.00 Cigars 2240 lek/kg
Chapter 22 Beverages, Sprits and Vinegar
22.03.00 Beer 50
24.04 Wine with a value up to 300 lek/liter 50 lek/liter
Wine with a value more than 300 lek/liter 150 lek/liter
22.08 Whiskeys, brandies, and similar distilled alcohol, including Raki (grappa)
With a value up to 400 lek/liter 80 lek/liter
With a value more than 400 lek/liter 400 lek/liter
22.09, 22.02 Non-alcoholic beverages 5
22.01 Bottled natural mineral waters 5
Chapter 9 Coffee, Tea, Mate, and Spices
09.01 Coffee 20
Chapter 27 Mineral Fuels, Mineral Oils and Products of their Distillation
27.10 Petroleum sub-products
Gasoline up to 89.9 octane 77
Gasoline more than 90.0 octane 90
Unleaded gasoline 90
Gasoil 50
Kerosene 80
Motor oil 50
Lubricating oils 50
Other oils 5
Other products such as bituminous oil, solvents, etc. 20
All other petroleum sub-products* 90
Chapter 40 Rubber and Articles Thereof
40.11 New pneumatic tires of rubber
Of a kind used on motor cars (including station wagons) 4000 lek/tire
Of a kind used on buses and trucks 3000 lek/tire
Other 2000 lek/tireWT/ACC/ALB/51
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Harmonized
System CodeDescription of Item Rate of
Excise
( per cent)Tax per Unit
Chapter 33 Essential Oils and Resinoids; Perfumery, Cosmetic or Toilet Preparation
33.03.00.10 Perfumes 50
33.03.00.90 Deodorants 50
Notes:* Liquid gas for household use is exempt from excise taxes.
57. In response to statements from some members of the Working Party that the coverage of products
could operate in a manner that would subject imported products to higher rates of excise taxation than
comparable domestic products, the representative of Albania stated that through the changes in thelaw, Albania considered that it had taken into account WTO and GATT principles related to
discrimination in the application of differential excise tax rates based on distinctions within the
product groupings.  It was now evident that Albania had included Raki, its national spirit, in the
alcoholic beverage group and it was listed as separate.  This was a technical improvement in the law.
For cigarettes, by including all types in one category, Albania had also complied with WTO andGATT 1994 principles.
58. The representative of Albania stated that from the time of accession, Albania would apply its
domestic excise taxes in strict compliance with Article III of the GATT 1994.  The Working Party
took note of this commitment.
Value-added tax
59. With reference to the Law No. 7928 “On Value Added Tax”, some members noted that Article 26
provides that the taxable value of imported goods included tariffs, taxes and duties payable upon
importation, and asked Albania to provide information as to what was included in the taxable value of
domestically produced goods in respect of value-added tax and to confirm that there was no differenceof treatment.  In response, the representatives of Albania said that the Law “On Value Added Tax”
was in compliance with GATT 1994 and the WTO Agreement.  According to Article 28 of the Law,
there was no discrimination between imported and domestic goods and services.  This Article was
similar to Article 11:A (2.a), of Title VIII of Directive VI of the European Commun ities, which was
compatible with Article III of GATT 1994.  Based on the abovementioned laws and articles, Albania
confirmed that there was no difference in the treatment of imports and domestic goods and services.
In response to further questions the representative of Albania stated that the VAT was the final taxapplied to imports. It was a broad base tax which was applied on all sources of goods and services.
There were very few exemptions such as the Bank of Albania, Albanian Post, humanitarian
organizations, diplomatic corps, financial services, and the import and sale of drugs and medicines
The representative of  Albania stated that the va lue of the import to which the VAT was applied was
the transaction value as stipulated for excise taxes as discussed in the preceding paragraph plusinsurance, transport, tariffs etc.  There were two methods by which the taxable base was determined:
(a) In the case of a good that was not subjected to an excise tax, the taxable base for 
value-added purposes is applied as follows:
{(V
t + Sh t + S) *  per cent T D + ⏐TD ⏐ } *   per cent VAT.
(b) In the case of a good that was subjected to an excise tax, the taxable base with the 
value-added tax is applied as follows:
{[(V t + Sh t + S) *  per cent T D + ⏐TD ⏐ ] *  per cent A +  ⏐A⏐} *   per cent VAT.
The abbreviations are defined as:WT/ACC/ALB/51
Page 25
Vt - value of transaction
Sht - transport expenses
S - insurance
per cent T D - percentage of customs duty
⏐TD⏐- absolute value of the customs duty
per cent VAT - percentage of the value-added tax
per cent A - percentage of excise tax
⏐A⏐- absolute value of the excise tax.
60. She also confirmed that the taxable value for collection of VAT on locally produced goods
included the value of goods plus any other obligations such as taxes, tariffs, etc. (established by law)
with the exception of the VAT, which was applied on the taxed value of the good.
61. The representative of Albania stated that from the time of accession, Albania would apply the
VAT in strict compliance with Article III of the GATT 1994.  The Working Party took note of this
commitment.
Quantitative Import Restrictions Including Prohibitions, Quotas and Licensing Systems
62. Some members of the Working Party said that the list of prohibited imports of Albania made it
clear that Albania operated an import licensing regime to address concerns related to threats from
imports to plant, animal and human health and safety, even though Albania had stated that it hadabolished all import licence requirements along with quantitative restrictions.  These members asked
Albania to indicate how the legislative regime for granting import permits and licenses met the
requirements of the WTO Agreement on Import Licensing, and Albania's plans for enacting
provisions in law or regulation.
63. Some members of the Working Party noted that the Memorandum on Import Licensing and
Prohibition on Importable Products (included as Appendix II to this Report) described the licensing
system and the procedures necessary to obtain a licence, together with Albania's justifications for the
restrictions.  Some members noted the requirement  that imported medicines and drugs must have an
import licence, and requested that Albania clarify whether these were automatic or non-automatic
licenses, the time-frame within which they must be granted, the criteria that the imported medicinesand drugs must meet to qualify for the licence, and whether Albania had a similar registration and
licensing system in place for the sales of domestic production of similar articles.  Those members also
requested similar information in relation to the li censing regime for pesticides, seeds and seedlings,
the conditions to be met in order for seeds to be imported, on what basis  importation  would not be
allowed, why the European Communities had special treatment, the status  for varieties originating in
Asia and North America, and for new varieties of seeds and seedlings.  In their view, this process
appeared to be inconsistent with GATT 1994 Article I since it afforded preferential treatment for theimportation of seeds and seedlings from the European Communities and discriminated against
products from other origins.  It also appeared to be inconsistent with GATT 1994 Article XI by
effectively imposing a ban on seeds and seedlings not listed in the catalogue.  In their view, this
process constituted a form of non-automatic licensing as described in Article 3 of the Agreement on
Import Licensing Procedures.  Those members also requested that Albania establish a transparentlicensing system that identified the products covered, the reasons for restrictions and the criteria for
obtaining an import licence.  Lacking justificatio n consistent with the requirements of the SPS
Agreement, such as conducting an appropriate risk assessment, demonstrating scientific evidence, and
ensuring that measures are applied in a non-discriminatory manner, Albania's restrictions or
requirements on seeds and seedlings were not justified.  Albania was also asked whether the licensingprocedures for imports and exports of live animals and for imports of seeds and seedlings were
statistical or restrictive and if there were any quantitative criteria; if  permission was denied how
could applicants appeal the decision, etc.  Finally, Albania was asked to provide an exhaustive list ofWT/ACC/ALB/51
Page 26
products that are submitted upon importation to quantitative restrictions, licensing or special
authorisation requirements, or special technical requirements.
64. In response the representative of Albania submitted a Memorandum on Restrictions and
Prohibitions for Importable Products (WT/ACC/ALB/ 35/Rev.1) which listed the products requiring
import licensing, together with the respective justifications and the process to obtain licenses.  Theseproducts included arms and munitions (and parts or accessories thereof); explosives, pyrotechnic
products, matches, pyrophoric alloys; nuclear materials; non-dangerous waste; narcotic drugs and
psychotropic substances; pharmaceutical products; seeds and seedlings; pesticides; live animals and
livestock products; fish and seafood products; eggs; wool; and leather.  The registration process (and
the right to engage in some trading activity) with the Tax Office was a one-time process and was
applied to both foreign and domestic firms or individuals. Prior to applying for a licence a person or
enterprise was required to be registered with th e Court of First Instance to become a natural or
juridical subject, and then to be registered with the proper Tax Office.  The tax registration process
also registers the individual/firm as having the right to engage in specific trading activity (i.e., import,
export, transport or other marketing activities).  For those items listed above, licensing was required
each time one imported (rather than multiple imports during the course of a specified period, e.g., one
year).  These cases applied only to livestock and livestock products; pesticides; and fish and seafoodproducts.  The tables therein also listed prohibitions on importable products. The items concerned
included dangerous waste, poisons, narcotic drugs, psychotropic substances, certain animal products,
seeds and seedlings etc.  She reconfirmed that there were no quotas on imports of live animals, seeds
and medicines/drugs and added that there were no non-tariff measures other than those measures
described in the Memorandum on import licensing and prohibitions on importable products.
65. In response to further questions, the representative of Albania stated that members’ concerns
would be addressed by the amendment of the fo llowing legislation:  "On Seeds and Saplings"
(No. 7659 12 January 1993);  "Law on Veterinary  Services" (No. 7674 23 February 1993);  "Law on
Plant Protection Services" (No. 7662 19 January 1993);  and an  Order of the Minister on "Creation of
Inter-Agency Working Group for the Decisions of th e Council of Ministers for the Approving of the
Import Licensing Agreement of the WTO" (No. 55 da ted 24 August 1999); "Decision of the Council
of Ministers for the Approving of the Import Li censing Agreement of the WTO" No. 468 dated
6 October 1999.  The Decision was a word-for -word copy of the WTO Agreement on Import
Licensing Procedures.  Therefore, all the necessary amendments had been enacted. The representative
of Albania confirmed that, after accession, Albania would have recourse to quantitative import
restrictions only in situations permitted by the WTO Agreement, and in particular, from the date of
accession, Albania would not introduce, re-introduce or apply quantitative restrictions on imports, orother non-tariff measures such as licensing, quotas, prohibitions, bans and other restrictions having
equivalent effect that could not be justified under the provisions of the WTO Agreement.  If balance-
of-payment measures were ever necessary in the future, Albania would impose them in a manner
consistent with the relevant WTO provisions, including Article XII of the GATT 1994 and the
Understanding on Balance-of-Payments Provisions of the GATT 1994.  The Working Party took note
of these commitments.
Customs Valuation
66. Some members of the Working Party asked Albania to give a status report on the efforts to bring
the customs valuation regime into line with the WTO Agreement on the Implementation of Article
VII of the GATT 1994, in particular, to list all relevant legislation and regulations in place, to indicatewhen minimum import prices were fully abolished and replaced by use of the transaction value and
the hierarchy of alternative valuation methods listed in the Agreement, and to confirm that the seven
prohibited valuation methods provided for in Article 7 of the Agreement had been abolished in
Albania's customs valuation regime.  In response the representative of Albania said that according to
the Law “On the Customs Code of the Republic of Albania”, No. 8449 dated 27 January 1999, thepractice of minimum pricing had ceased.  In Chapter 3, Article 33-40 customs valuation was definedWT/ACC/ALB/51
Page 27
in compliance with WTO procedures.  A copy of the Customs Code had been submitted to the WTO.
An earlier "Customs Procedures Code" had been re placed by a Decision of the Council of Ministers,
"Implementing Procedures of the Customs Code", No. 205 dated 13 April 1999.  A copy of the
"Implementing Procedures of the Customs Code" was made available to members of the Working
Party.  The representative of Albania stated that from 15 May 1999, Albania had been in fullconformity with the requirements of the Agreement on Implementation of Article VII of the
GATT 1994, with the entry into force of the Customs Code and the Implementing Provisions of the
Customs Code.
67. The representative of Albania noted that the appeals process for customs valuation decisions
apply to Articles 19 and 20 of the Customs Code.  If a trader did not agree with a customs
administrative decision, the trader could appeal to the Chief of the Customs Office in the Field.  A
subsequent appeal could then be made within 10 days from the day of notification to the GeneralDirectorate of Customs.  The Director General was required to take a decision within 20 days from
the date the appeal was received.  In the event that the Director General of Customs failed to take a
decision, the request was presumed to have been accepted.  According to Article 289, if the Director
General rejected the appeal, the trader could appeal to the Courts, subject to the usual procedures
based on the relevant articles of the Civil Code of the Republic of Albania and the relevant articles ofthe Code of Civil Procedures described earlier in this Report.
68. Some members of the Working Party asked Albania to alter its domestic law and regulation to
provide that in implementing the WTO Agreement on the Implementation of Article VII of the GATT
(Customs Valuation), the customs value for duty pur poses of cinematographic films so that it would
not include royalties or licensing fees paid by the buyer for the right to distribute or reproduce theseimports.  The Representative of Albania noted that  Albania would amend Ar ticle 37 of the Law “On
the Customs Code of the Republic of Albania”, No. 8449 dated 27 January 1999, and Chapter II of the
Decision of the Council of Ministers, “Implemen ting Procedures of the Customs Code”, No. 205,
13 April 1999 to reflect that Albania would not include royalties or licensing fees in the customs
valuation of cinematographic films.
69. The representative of Albania further noted that the provisions of the Agreement on the Customs
Valuation had been fully enforced in Albania from 15 May 1999 and were used to determine the value
of imported goods when they cannot be determined under Articles 34 or 35.  She added that Albania
was committed to applying the Interpretive Notes of the Customs Valuation Agreement in Annex 6 of
the Implementing Provisions of the Customs Code.  She noted also that provisions related to the
determination of customs value of carrier media for use in data processing equipment and bearing data
or instructions were set out in Article 39 of the Customs Code and in Article 79 of the ImplementingProvisions of the Customs Code, copies of which were also made available to members of the
Working Party.  In addition, she confirmed that Albania did not intend to include royalties or
licensing fees for the right to reproduce or distribute cinematographic films imported into Albania in
the calculation of the price paid or payable in dete rmining the transaction value.  Prior to the date of
its accession, Albania would enact and implement legislation amending the “Law on Customs Code ofthe Republic of Albania”, No. 8449 dated 27  January 1999 and the “Implementing Provisions of the
Customs Code”, Decision of the Council of Ministers, No. 205 dated 13 April 1999 to provide that
such charges would not be added toward the dutiable value of the imported films.
70. In response to further questions, the representative of Albania clarified that the Customs Code
provided the following provisions.  Article 38 of the Customs Code did not deal with deductive value,rather it concerned elements that should not be included in the customs value when the transaction
value method was used.  Article 64 of the Implementing Provisions of Customs Code implemented
the Interpretative Note of Article 5 of the Customs Valuation Agreement.  She further noted that the
implementing provision for Article 7.3 of the Customs Valuation Agreement was found in the
“Implementing Provisions of the Customs Code”.  Article 81 (2) of those Provisions defined "relatedparties" and when the  “fall-back” method should be used because the declared customs value was notWT/ACC/ALB/51
Page 28
acceptable.  Article 9 of the Customs Valuation Agreement was reflected in Article 40 (3) of the
"Implementing Provisions".  This Article provided th at the exchange rate to be used was that applying
when the goods were declared for import.
71. Concerning the taking of a security, the representative of Albania stated that Article 111 of the
Customs Code did not require that the guarantee be deposited to ensure any customs debt that mayresult because of the differences in defining the customs value.  Article 111 provided that a security
could be requested as a condition for the suspension of customs clearance of the goods. Guarantees of
debts were covered in Article 99 of the Customs Code.  The Code stated that imported goods could be
released only if the importer guaranteed the customs office that he can pay all debts for customs
purposes in the future.
72. In response to further questions from members of the Working Party, the representative of
Albania stated that Albania would modify its Implementing Provisions of the Customs Code to
include the word-for-word text of the WTO Custom s Valuation Agreement so that the importer would
be informed in writing of the customs value dete rmined under the "fall-back method" and the method
to be used to determine the value as set forth in Article 7.3 of the WTO Customs Valuation
Agreement.   In addition, an amendment to the Cu stoms Code had included the word-for-word text of
Article 9 of the WTO Customs Valuation Agreement.  This ensured that Albania met the transparencyobligations with regard to currency conversions by confirming a trade at the time of importation.  In
the Implementation Provisions of the Customs Code, the representative of Albania noted that there
were conditions for when the customs authorities required a security.  These conditions were
published, and were the responsibility of the 300 lawyers who worked as Customs Agents who were
to report on these documents as described in the Customs Code and the Implementing Provisions ofthe Customs Code.  This practice fulfilled the transparency obligations under Article 12.
73. The representative of Albania committed that Albania had implemented a Decision of the Council
of Ministers, Decision No. 516 dated 14 October 1999 entitled “On Some Changes to the Decision of
the Council of Ministers On the Implementing Provisions of the Customs Code, No. 205 dated
13 April 1999”.  This legislation would ensure that  the Implementing Provisions of the Customs Code
would be in compliance with The Interpretive Note to Article 5.8 of the WTO Valuation Agreement;
Article 7.3 of the WTO Valuation Agreement; Article 9 of the WTO Valuation Agreement.  Albania
would  provide confirmation that it had published the implementing provisions explaining when "the
customs authorities require the provision of a security" in order to fulfill its obligations under Article
12 of the Customs Valuation Agreement.  The Working Party took note of these commitments.
74. The representative of Albania confirmed that, from the date of accession, Albania would comply
with the WTO provisions concerning customs valu ation, including in addition to the Agreement on
the Implementation of Article VII of the GATT 1994, the Interpretive Notes to that Agreement, and
the provisions for the Valuation of Carrier Media Bearing Software for Data Processing Equipment.
In accordance with these latter provisions, only the cost of the carrier medium itself would be
accounted for in the customs value (Decision 4.1).  She added that, as an international agreement, the
provisions of the WTO Agreement on the Implem entation of Article VII of the GATT 1994 would
supersede domestic law upon accession.  The Working Party took note of these commitments.
75. The representative of Albania stated that Albania approved a Decision of the Council of Ministers
entitled “On Some Changes to the Decision of the Council of Ministers On the Implementing
Provisions of the Customs Code, No. 205 dated 13 April 1999”, No. 516 dated 14 October 1999
which served as an amendment to the Implementing Provisions of the Customs Code.  Themodification in the implementing provisions of th e Customs Code included a word-for-word text of
the Interpretive Note to Article 5.8 of the WTO Customs Valuation Agreement, which provided that
local taxes payable by reason of the sale of the goods for which a deduction was not made under
Article 5.1(a) (iv) (deduction for customs duties and national taxes by reason of importation) shall be
made under Article 5.1(a) (i) (deductions for commissions or profit and general expenses).  SheWT/ACC/ALB/51
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further confirmed that prior to Albania’s accession to the WTO, both the Law on Customs Code of the
Republic of Albanian, No. 8449 dated 27  January 1999 and the Decision of the Council of Ministers,
No. 205 dated 14 April 1999 would be amended to provide that the transaction value of
cinematographic films imported into Albania would not include royalties and licence fees for the right
to reproduce or distribute them, and that such changes would not be added toward their dutiable value.The Working Party took note of these commitments.
Rules of Origin
76. Some members of the Working Party requested information about the elaboration of rules of
origin in Albania.  In response the representative of  Albania said that with regard to rules of origin,
the Customs Code, Law No. 8449 of 27 January 1999, Chapter 2, Article 29-32, described the
procedures to define origin of imported and exported products into and out of the Republic ofAlbania.
77. The representative of Albania further added that the Implementing Provisions of the Customs
Code dealing with customs valua tion (Articles 54-81); rules of origin for non-preferential trade
(Articles 44-46 and Annex 3); and rules of origin for preferential trade (Articles 47-53 and Annex 4)
had been enacted and were made available to members of the Working Party.
78. Some members of the Working Party requested information on how the implementing provisions
incorporated, either for non-preferential or preferenti al rules of origin, the requirements of Article 2(h)
and Annex II, paragraph 3(d) respectively of the Agreement on Rules of Origin, which require that the
Customs provide an assessment of the origin of the import upon the request of an exporter, importer
or any person with a justifiable cause.  Those members noted that those provisions also required thatrequests for such assessments be accepted before trade in the goods concerned begins and that their
assessments be binding for three years.  The representative of Albania stated that with the approving
of the Decision of the Council of Ministers entitled "For Approving the Rules of Origin of the WTO",
No. 435 dated 9 September 1999 Albania had achieved full conformity with the WTO Agreement on
Rules of Origin.  That Decision was a word-for-w ord copy of the WTO Rules of Origin Agreement,
and would serve as an approved amendment to the Implementing Provisions of the Customs Code
(No. 205 of 13 May 1999).
79. The representative of Albania stated that from the date of accession Albania preferential and non-
preferential rules of origin would comply fully with the WTO Agreement on Rules of Origin.  The
requirements of Article 2(h) and Annex II, Paragr aph 3(d) of the Agreement would also be fully
implemented prior to accession.  She also stated th at in any event, from the date of accession the
Customs would provide an assessment of the origin of the import upon the request of an exporter,importer or any person with a justifiable cause.  Any request for such an assessment would be
accepted even before trade in the goods concerned began.  Any such assessment would be binding for
three years. The Working Party took note of these commitments.
Pre-Shipment Inspection80. With reference to pre-shipment inspection, some members of the Working Party asked Albania to
describe what services were provided, whether or not mandatory, how the Government of Albania
contracted these services and disciplined these activities, the cost structure for traders making use of
any mandated PSI services and whether Albania was prepared to take responsibility for the activities
of the PSI enterprises that operated in its name and to ensure that they observed WTO provisions.  Inresponse the representative of Albania said that Albania did not currently use the services of any pre-
shipment inspection firm.  However, she noted th at the “Law on Customs Code of the Republic of
Albania”, No. 8449 dated 27 January 1999, Articles 11(4) and 25 permitted the Government of
Albania to engage such a service, if required.  She noted however, that Albania had no current
intentions to use the services of a pre-shipment inspection firm.WT/ACC/ALB/51
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81. The representative of Albania stated that if Albania in the future engaged the services of a pre-
shipment inspection service provider Albania would ensure that the requirements of the Agreement on
Preshipment Inspection were implemented in full. Albania would take full responsibility to ensure
that such enterprises operating on its behalf complied with the provisions of WTO Agreements.
Decisions by such firms could be appealed by importers in the same way as administrative decisionstaken by the Albanian government.  Any pre-ship ment inspection regime would be temporary and
would only operate until such time as the Albanian Customs authorities were able to carry out such
functions.  The Working Party took note of these commitments.
Anti-Dumping, Countervailing Duties
82. Some members of the Working Party asked for information on the status of Law No. 7609 "On
Customs Tariffs" which provided for special cust oms duties, anti-dumping duties and countervailing
duties and asked Albania to provide an update of the legislation on anti-dumping and countervailing
duties.  In response the representative of Albania said that the Law on Anti-Dumping was before the
Parliament and was enacted as the Law “On Anti-Dumping”, No. 8466 dated 24 March 1999.  Some
members of the Working Party stated that they considered that the Law “On Anti-Dumping” was not
in conformity with the requirements of the WTO Agreement.  The representative of Albania statedthat further subsidiary implementing legislation wa s in the course of preparation, including Decisions
on:  "The Organization and Function of the Anti-Dumping Office";  "The Definitions and Fulfilment
of the Application Forms;  "The Content of the Public Notice for the Initiation of the Investigation";
"The Confidential Information";  "The Public File (Registry) of the Anti-Dumping Office"; and "The
Notice of the Final Decisions".  All those decisions were expected to be enacted by the end of 2000.
83. The representative of the Government of Albania also noted that work on the drafting of
legislation on countervailing duties had been suspended.
84. The representative of Albania confirmed that Albania would not apply any anti-dumping, or
countervailing measures until it had notified and implemented all appropriate laws  in conformity with
the provisions of the WTO Agreements on the implementation of Article VI, and on Subsidies andCountervailing Measures.  Albania would ensure th at any legislation concerning anti-dumping or
countervailing duties was in full conformity with the relevant WTO provisions , including Article VI
of the GATT 1994 and the Agreements on the Implementation of Article VI and the Agreement on
Subsidies and Countervailing Measures.  After such legislation was implemented, Albania would also
apply any anti-dumping duties, countervailing duties and safeguards measures in full conformity with
the relevant WTO provisions.  The Working Party took note of these commitments.
Safeguards Regime
85. Some members of the Working Party asked for information on any legislation concerning the
imposition of safeguard measures.  In response the representative of Albania said that work on the
drafting of legislation for safeguard measures had been suspended.
86. The representative of Albania confirmed that Albania would not apply any safeguard measure
until it had notified and implemented appropriate laws  in conformity with the provisions of the WTO
Agreements on Safeguards. Albania would ensure that any legislation concerning safeguard measures
was in full conformity with the relevant WTO provisions , including XIX of the GATT 1994 and the
Agreements on Safeguards.  If such legislation wa s implemented, Albania would also apply any anti-
dumping duties, countervailing duties and safeguards measures in full conformity with those same
WTO provisions.  The Working Party took note of these commitments.WT/ACC/ALB/51
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Export Regulations
Customs tariff nomenclature, types of duties, etc.
87. Some members of the Working Party asked whether Albania had export taxes, requested the
WTO justifications for maintaining export prohibitions on wood and wood products and on metalwaste and scrap.  They asked Albania to confirm that there were quantitative export restrictions on
firewood, unprocessed wood, sawed wood and beams;  waste and scrap precious metals; waste and
scrap iron, steel, nickel, lead, zinc, tin and copper, waste and scrap aluminium (except for waste
aluminium packaging, such as aluminium cans for soft drinks which had been imported); and ingots
and to give a WTO-compatible justification for the restrictions or to indicate how Albania intended to
amend these measures to bring them into conformity with WTO provisions.  The representative of
Albania said that Albania had no export taxes.  She noted that Albania's Memorandum on ExportLicensing and Prohibitions on Exportable Product s (WT/ACC/ALB/34/ Rev.1), the export prohibitions
on wood and wood products were related to the implementation of the Law “On Forestry” and the
establishment of the responsible institutions for the forestry's administration, control and services.
The export prohibitions on all kinds of metal waste and scrap were aimed to prevent the exportation of
these commodities before the privatization of all the industrial enterprises was concluded.  However,Albania eliminated export prohibitions with passin g Decision of the Council of Ministers “For the
Export-Import of Goods from and into the Republ ic of Albania, No. 450 dated 16 September 1999.
The items still subjected to export licenses were arms and ammunitions, explosives, pyrotechnic
products, pyrophoric alloys, firearms, modern works of  art etc. The ban on the export of works of art
and antiques would not be phased out in order to protect the cultural heritage and  integrity of theRepublic.
88. The representative of Albania later stated that the export prohibition on preparation of fish
products, crustaceans, molluscs, etc. was due to the International Organization for Epizootics listing
of Albania on countries with diseases from List A.  The ban was not a unilateral measure taken by the
Government of Albania.  The same  explanation applied to the prohibition related to the residue and
waste from prepared animal food.
89. The representative of Albania stated that all decisions of the Council of Ministers on export
prohibitions related to tariff lines under HS Chapters 41.01-41.03, Chapter 72.04 and Chapter 74.01-
74.19 would be repealed by the end of September 1999, in order to comply with WTO provisions on
export restrictions.  The representative of Albania confirmed that from the date of accession the
following products would be subject to export licensing: 93.01 - 93.07 (arms and munitions, parts and
accessories thereof); 36.01 - 36.06.90.90 (explosives, pyrotechnic products, matches, pyrophoricalloys); 97.01 - 97.06 (modern works of arts).  The export licensing regime for the above-mentioned
goods was in place for the following purposes, a dherence to international commitments related to
non-proliferation, mass destruction and production of technologies thereof; to prevent trade of said
products to hostile nations subjected to international bans; to protect the cultural integrity and heritage
of the Republic.
90. The representative of Albania confirmed that at the time of accession any remaining export
control requirements in place would be fully consistent with WTO provisions, including those
contained in Articles XI, XVII, XX and XXI of the GATT 1994.  In this regard, Albania had lifted the
export bans on items listed in the document WT/ACC/ALB/34/Rev.1, with the Decision of the
Council of Ministers “For the Export-Import of Goods from and into the Republic of Albania”,No. 450 dated 16 September 1999.  The representative of Albania stated that from the date of
accession export restrictions would only be imposed in conformity with the WTO Agreement.  The
Working party took note of these commitments.WT/ACC/ALB/51
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Export Subsidies
91. Some members of the Working Party asked Albania to confirm that Albania had no export
subsidies.  In response the representative of Albania said that Albania did not maintain export
subsidies of any sort on industrial products or agricultural commodities.
92. The representative of Albania stated that from the date of accession Albania would not maintain
subsidies including export subsidies which met the definition of a prohibited subsidy, within the
meaning of Article 3 of the Agreement on Subsidies and Countervailing Measures and that it would
not introduce such prohibited subsidies in the future.  The Working Party took note of these
commitments.
Internal Policies Affecting Trade in Goods
Industrial policy, including subsidies
93. The representative of Albania informed members of the Working Party that Albania did not
administer any subsidies prohibited by the WTO Agreement.
94. The representative of Albania confirmed that any subsidy programmes provided by the
Government after accession would be administered in line with the Agreement on Subsidies and
Countervailing Measures and that all necessary information on notifiable programmes would be
notified to the Committee on Subsidies and Countervailing Measures in accordance with Article 25 ofthe Agreement upon entry into force of Albania's Protocol of Accession.  The Working Party took
note of these commitments.
Technical Barriers to Trade
95. Some members of the Working Party asked Albania to provide an update on progress in
implementing the TBT Agreement and a commitment th at the Agreement would be fully implemented
as from the date of Albania's accession to the WTO.  In response the representative of Albania
provided the following table in  document WT/ACC/ALB/32/Rev.3:
Table 8
1.  The Law on Standardization provides for
Standstill: the introduction of new standards,technical regulations and conformity assessmentprocedures should be fully compatible with the TBT
Agreement principles.1.  Generally agreed principle in WTO accession
negotiations.
2.  The Law on Standardization and the fourDecisions of the Council of Ministers that followassure compliance with TBT: (1) the "Code of Good
Practice for the Adoption and Application of
Standards", Decision of the Council of Ministers,No. 242 dated 28 May 1999; (2) Criteria andCompetencies in the Fields of Standardization,Certification, and Accreditation, No. 371 dated4 August 1999; (3) Exchange of Information on
Standards and Technical Regulations, No. 372 dated
4 August 1999; and (4) the Preparation, Adoptionand Application of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulations and Standards, No. 323 dated
8 July 19992.  Article 15.2 and TBT Committee Decision
(G/TBT/1)
All Decisions of the Council of Ministers have been approved and are in force.WT/ACC/ALB/51
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3.  By Order of the Prime Minister, No. 36 dated
6 May 1999, (Paragraph 7) it is officially establishedthat Albania will have one enquiry point for
information on standards and technical regulations to
be in compliance with SPS and TBT.  The location ofthe enquiry point is as follows:
Directorate for Standardization
Rr. "Mine Peza", Nr. 143/3
Tirana, ALBANIA+ 355-42-47176 telephone+ 355-42-26255 faxdsc@icc.al.eu.org e-mail3.  Articles 10
The Directorate of Standardization, with its authority and responsibility to operate a single unit enquiry point,
was a fully operational single unit enquiry point.  Notifications on SPS and TBT had been submitted to theWTO and circulated.
4.  Relevant ministries (Ministry of Agriculture andFood, Ministry of Health, Ministry of Labor andImmigration, Ministry of Public Works andTransportation, Ministry of Education and Science)
will be the authorities responsible for notification,
publications and other internal procedures to ensurethat transparency obligations are met on an ongoingbasis:4.  Article 2,3,5,7,10,15.2,
Annex 3 and G/TBT/1
(A) the Decision of the Council of Ministers on thePreparation, Adoption and Application of TechnicalRegulations and the Procedures for Assessment of
Conformity with Technical Regulation and Standards
will define the publications where notices ofproposed technical regulations and conformityassessment procedures will appear;(A) Articles 2.9.1,3.1,5.6.1,7.1,10.1.5
(B) the Directorate for Standardization will be the
authority responsible for making the notifications tothe WTO, Order of the Prime Minister, No. 36 dated
6 May 1999, (Paragraph 7);(B) Articles 2.9.2, 2.10.1, 3.2,3.3,5.6.2,
5.7.1,7.2,7.3,10.7,10.10
(C) the Decision of the Council of Ministers on the
Preparation, Adoption and Application of Technical
Regulations and the Procedures for Assessment ofConformity with Technical Regulation and Standardswill give guidance for ensuring non-discriminationconsideration of comments in the preparation of a
final regulation and will define the responsible
authority; and(C) Articles
2.9.4,2.10.3,3.1,3.35.6.4,5.7.3, 7.1,7.3
(D) the Decision of the Council of Ministers on the
Preparation, Adoption and Application of TechnicalRegulations and the Procedures for Assessment ofConformity with Technical Regulation and Standardswill define a reasonable period of time between the
final publication of a technical regulation and
conformity assessment procedure and its entry intoforce so that suppliers can adapt;(D) Articles 2.11,2.12,3.1,5.8,5.9, 7.1
(E) with regard to standards, the adopted code, letter
"J", will be published by the Directorate ofStandardization will provide notification of draftstandards and provide an opportunity for publiccomment.(E) Article 4, Annex 3 (J,K,L,N,O); Article 8.1WT/ACC/ALB/51
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5. Development and Application of Technical
Regulations and Conformity Assessment Procedures:existence of legal and/or administrative
underpinnings (or "reasonable measures" as
appropriate) to ensure ongoing compliance withprovisions of the agreement concerning, in particular:5.  Articles 2, 3, 5, 6, 7
(a) the Albanian Law on Standardization, Article 4,
provides for non-discrimination with respect to
treatment of products and the Decision of theCouncil of Ministers on the Preparation, Adoptionand Application of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulation and Standards;(a) Articles 2.1, 3.1, 5.1, 5.2, 7.1
(b) the Albanian Law on Standardization, Article 4,
and the Decision on the Preparation, Adoption and
Application of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulation and Standards provides for theprohibition of unnecessary obstacles to internationaltrade and the consideration of less trade-restrictive
alternatives to fulfilling legitimate objectives;(b) Articles 2.2, 3.1, 5.1, 5.2, 7.1
(c) the Decision on the Preparation, Adoption and
Application of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulation and Standards will provide forongoing review of technical regulations to ensurethey are appropriate to achieve the desired legitimate
objective;(c) Articles 2.3, 3.1, 7.1
(d) the Law on Standardization, Article 4, and the
Decision on the Preparation, Adoption andApplication of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulation and Standards provides for theconsideration of appropriate international standards,
guides and recommendations as a basis for technical
regulations and conformity assessment procedures;(d) Articles 2.4, 3.1, 5.4, 7.1
(e) the Decision on the Preparation, Adoption and
Application of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulation and Standards will provide forthe consideration of equivalent technical regulations
of other Members;(e) Articles 2.7, 3.1, 7.1
(f) relevant ministries can take the decision to accept
the results of conformity assessment procedures
conducted by bodies in an exporting Member countryas well as the Decision on the Preparation, Adoptionand Application of Technical Regulations and theProcedures for Assessment of Conformity with
Technical Regulation and Standards; and(f) Articles 6, 7.1
(g) relevant ministries will implement a non-
discriminatory and a cost-based fee structure as well
as the Decision on the Preparation, Adoption andApplication of Technical Regulations and theProcedures for Assessment of Conformity withTechnical Regulation and Standards.(g) Articles 5.2, 7.1, 10.4WT/ACC/ALB/51
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6.  Development and Application of Standards and
Conformity Assessment Procedures: Existence oflegal and/or administrative underpinnings (or
"reasonable measures" as appropriate) to ensure
ongoing compliance with provisions of theagreement concerning, in particular:6.  Article 4 and Annex 3, Article 8
(a) the Law on Standardization, Article 4, and the
Adopted Code provide for non-discrimination with
respect to the treatment of products;(a) Annex 3 (d), Article 8.1
(b) the Law on Standardization, Article 4, and the
Adopted Code provide for the prohibition ofunnecessary obstacles to international trade;(b) Annex 3 (e), Article 8.1
(c) the Law on Standardization, Article 4, and the
Adopted Code provide for the consideration ofappropriate international standards, guides, andrecommendations as basis for standards;(c) Annex 3 (f), Article 8.1
(d) the Adopted Code provides non-discriminatory
and cost-based fee structure.(d) Annex 3 (m), Annex 3 (p), Articles 8.1, 10.4
96. The representative of Albania noted the passing of the new Law “On Standardisation”, No. 8464
dated 11 March 1999 and the Decisions of the Council of Ministers, "The Preparation, Adoption and
Application of Technical Regulations and the Procedures for Assessment of Conformity withTechnical Regulations and Standards", No. 323 dated 8 June 1999.  In the new Law “On
Standardisation” the definitions of standards and technical regulations were those given in Annex 1 of
the TBT Agreement "Terms and their Definitions for the Purpose of this Agreement".  All standards
would be voluntary and technical regulations mandatory.  In accordance with the Albanian
Constitution, when a treaty or international agreement such as the WTO Agreement was ratified bythe Parliament of Albania, the provisions of the international agreement (i.e., the WTO Agreements)
will supersede the Law “On Standardization”.  This implied that the Albanian standards would
become voluntary.  Only up until the time of accession can ministries or other regulatory bodies,
during the drafting of technical regulations, declare mandatory those standards which deal with health
and safety.  Standards would be applied to foreigners and local producers in compliance with national
treatment.  Technical regulations would be used to  protect human, animal or plant life or health or
environment without being more trade-distorting than necessary.
97. The representative of Albania stated that the work of the General Directory of Standardisation
(GDS) would be based on the adoption of internati onal (ISO) and regional (EN) standards.  In 1990,
Albania had not adopted any foreign standards; in 1998 the Republic of Albania had adopted 52 ISO,
4 IEC, 147 EN, and 62 standards from other States.  The goal was to reduce the creation of national
standards and to increase the adoption of international standards.  Accreditation would be based onEuropean standards series 45,000.  For certification, however, foreign certification bodies could carry
out certification activities in Albania.  The GDS was a full member in ISO and an affiliate member in
CEN.  In the future, the GDS would be a memb er of IEC and CENELEC.  In the preparation of
standards, the emphasis was on product performance requirements rather than on design or descriptive
requirements.  The process of preparation of standards was open, transparent and free fromcommercial influence.
98. The representative of Albania noted that an Information Centre for Standards had been created in
compliance with the TBT Agreement requirement of an enquiry point.  By an order of the Prime
Minister of Albania, No. 36 dated 6 May.1999, paragraph 7, the enquiry point for TBT and SPS was
at the General Directorate for Standardization.  The addressed was as follows:WT/ACC/ALB/51
Page 36
Rr.”Mine Peza”, Nr.143/3,
Tirana, Albania,
Tel. + 355 42 47176,
Fax. + 355 42 26255,
E-mail: dsc@icc.al.eu.org.
Albania had notified the WTO Secretariat of this decision and provided all the relevant information.
The Information & Sale Center of this Directorate would act as the enquiry point.  This point was thus
already operational.
99. The representative of Albania added that the Code of Good Practice for Preparation, Adoption
and Application of Standards had been translated into Albanian and had been adopted through theDecision No. 242 dated 28 May 1999.  All of the WTO requirements on TBT had been enacted as set
out in Table 7 above.  She noted in particular th e passing of the "Law on Standardization", No. 8464
dated 11 March 1999 and the passing of the Decisions of the Council of Ministers listed in
WT/ACC/ALB/40 and WT/ACC/ALB/ 32/Rev.3:  No. 323 dated 8 July 1999, entitled "Preparation,
Adoption and Application of Technical Regulations and Procedures for Assessment of Conformitywith Technical Regulations and Standards"; No. 371 dated 4 August 1999, entitled "Criteria and
Competencies in the Fields of Standardization, Certification, and Accreditation"; and No. 372 dated
4 August 1999, entitled "Exchange of Information on Standards and Technical Regulations".  Finally,
she noted that Albania had its single unit enquiry point fully operational and in place and had
submitted notifications on TBT measures.
100. The GDS had prepared the Decision of the Counc il of Ministers Council of Ministers "For the
Approval of the Code of Good Practice for Adop tion, Approval and Application of Standards" to
ensure that all remaining activities would be in compliance with the requirements of the Agreement
on TBT.  She added that accreditation would be a separate activity in the future and this was linked
with the starting of the accreditation of certification bodies, in addition to testing laboratories.  Forseparating these activities Albania would need about two years, depending on  economic
developments and  Albania's situation.  Standardisation was a separate activity from certification.  The
standards process was open and every natural or juridical subject could participate in the technical
committee for standards, if interested.  Some fo reign companies participated in the technical
committee.  Draft standards were published and the comments period was from three to six months.
101. Regarding certification, the representative of Albania noted that the market was open for
other third party certification bodies.  The Law “On Standardisation” had charged the nationalstandards body to carry out certification, but did not forbid other certification bodies from carrying
out this activity in Albania.  The national st andards body would become independent from the
Government when the economic operators in Albania were interested in supporting this body
financially.  The goal of Albania was to adopt as many international and European standards as
possible and this process was well under way.  The national standards would be used only for somelocal products not subject to international trade.  Having only voluntary standards, these would not
create a technical barrier to trade.  In Albania, the technical regulations would be established only by
the national authority.  Standards would be issued  by the national standards body in the fields of
ISO/IEC or CEN/CENELEC and by the Albanian Office for Telecommunications Regulation in the
field of ITU or ETSI.
102. In response to requests for further updates on the progress towards compliance with the
requirements of the Agreement on TBT, the representative of Albania stated that to ensure full
compliance with the TBT Agreement, the Government of Albania had prepared four Decisions.  The
first one is the Decision which would adopt Articles  2, 5, 6, 8 and 9 of the TBT Agreement.  Articles
3 and 7 were not included because in Albania the technical regulation were prepared by ministries orcentral public institutions and not by the local administration.  The first Decision, "Code of Good
Practice for the Preparation, Adoption and Application of Standards" was approved by the Council ofWT/ACC/ALB/51
Page 37
Ministers (No. 242 dated 28 May 1999).  That Decision reflected Annex 3 of the TBT Agreement.
The second Decision, "Criteria and Competencies Related to Standardization, Certification and
Accreditation" (No. 371 dated 4 August 1999) mainly  dealt with the three activities covered by the
General Directorate of Standardization.  The third Decision, "On Exchange of Information on
Standards and Technical Regulations" (No. 372 dated 4 August 1999) covered Articles 10.1, 10.1.1,10.1.2, 10.1.3, 10.1.4, 10.1.5, 10.1.6, 10.4, 10.7, 10.8, 10.9. 10.11, of the TBT Agreement.  The fourth
Decision, "Preparation adoption and application of Technical Regulations and the Procedures for
Assessment of Conformity with Technical Regulations and Standards" (No. 323 dated 8 July 1999)
covered Articles 2.11, 2.12, 3.1, 5.8, 5.9 and 7.1 of the TBT Agreement.  Copies of each Decree were
made available to members of the Working Party.
103. The representative of Albania stated that Albania had provided for the "notification,
publication, and other internal procedures", e.g., publication prior to enactment for public comment,that would implement the provisions of the TBT Ag reement.  Such provision was contained in the
Decree "On Exchange of Information on Standard s and Technical Regulation".  Concerning the
requirement that a decision to accept the results of conformity assessment  procedures be conducted
by bodies in an exporting Member country; and relevant ministries will implement a non-
discriminatory and cost-based fee structure", the representative of Albania stated that those wereincluded in the Decree of government which would implement Articles 2, 5, 6, 8 and 9 of the TBT
Agreement.  Regarding self-declaration for regulated products Albania had included it in the Decree
for Criteria and Competencies for Standardization, Certification and Accreditation, Chapter II,
point 9.
104. The representative of Albania confirmed that Albania would apply all obligations under the
WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any
transition period.  The Working Party took note of this commitment.
Sanitary and Phytosanitary Measures (SPS )
105. Some members of the Working Party asked Albania to outline how the provisions of the
WTO Agreement on Sanitary and Phytosanitary Measures were implemented in Albanian Law.  In
response the representative of Albania said that Albania had supplemented the documentation on SPS,
and had indicated that it was in compliance with WTO principles in the Memorandum on Conformity
with SPS (document WT/ACC/ALB/31/Rev.2).  The Memorandum reviewed WTO compliance
article by article as follows:
Table 9
Albanian Compliance Requirements under the WTO
1.  Standstill: the introduction of new standards,
animal health regulations and food safety regulationsshall conform to SPS Agreement principles.   Thecurrent regulations include:1.  Generally agreed principle in WTO     accession
negotiations.
"Law on State Sanitary Inspectorate", No. 7643 dated2 December 1992;"The Law on Food"; No. 7941 dated 31 May 1995;
"Law on Seeds and Saplings", No. 7659 dated
12 January 1993;"Law on Albanian Veterinary Services", No. 7674dated 23 February 1993;Decision of the Council of Ministers, "On
Pesticides", No. 584 dated 6 December 1993;
Decision of the Council of Ministers, "On Approvingthe Regulation for the Production, Reproduction,Treatment, Assessment, Trade, Control of Seeds andSaplings and for Protection and Treatment of GeneticWT/ACC/ALB/51
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Albanian Compliance Requirements under the WTO
Material of Plants", No. 552 dated 14 November
1994;"Law on Plant Protection Services", No. 7662 dated19 January 1993
2.  Article I, Section 1 and 6, of the Law on StateSanitary Inspectorate states that the Ministry ofHealth serves as the information point for the WHO
and related international organizations.  The
Directory of Veterinary Service and Plant Protectionin the Ministry of Agriculture and Food serves as theinformation point for questions related to animal andplant inspection, control, etc.By Order of the Prime Minister, No. 36 dated
6 May 1999, (Paragraph 7) it is officially established
that Albania will have one inquiry point forinformation on standards and technical regulations tobe in compliance with SPS and TBT.
Directorate for Standardization
Rr. "Mine Peza", Nr. 143/3
Tirana, ALBANIA+ 355-42-47176 telephone+ 355-42-26255 faxdsc@icc.al.eu.org e-mail2.  Article 7 and Annex B.3
The Directorate of Standardization, with its authority and responsibility to operate a single unit enquiry point,
had a fully operational single enquiry point at the time of accession.
3. Transparency: notification and access to
documentation:
(a) The Directorate of Standards is the authorityresponsible for making notifications to the WTO andensuring transparency obligations are met on anongoing basis, Order of the Prime Minister, No. 36dated 6 May 1999, (as provided in Paragraph 7);3.  Articles 7 and Annex B, Also G/SPS/7
(a) Annex B.5.(b) and Annex B.10
(b)  An Order of the Prime Minister, No. 129 dated
18 September 1999, on "Creation of the Inter-
Agency Groups for Technical Barriers to Trade
(TBT) and Sanitary and Phytosanitary Measures(SPS)". This Order creates an inter-agency SPSworking group. The working group will improvecoordination among agencies in the drafting of future
SPS measures.  This ensures that drafts of legal and
sub-legal texts related to SPS are provided to theAlbanian enquiry point so that these drafts can besubmitted to the WTO Secretariat as earlynotification to Member countries for their comment.(b) Annex B.5(a)
(c) An Order of the Prime Minister, No. 129 dated
18 September 1999, on "Creation of the Inter-
Agency Groups for Technical Barriers to Trade
(TBT) and Sanitary and Phytosanitary Measures(SPS)" require that copies of proposed measure beprovided to WTO Members; and(c) Annex B.5(c)
(d) An Order of the Prime Minister, No. 129 dated
18 September 1999, on "Creation of the Inter-Agency Groups for Technical Barriers to Trade(TBT) and Sanitary and Phytosanitary Measures
(SPS)" specify a reasonable period of time for
comment from Members and the public, and(d) Annex B.5(d)WT/ACC/ALB/51
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Albanian Compliance Requirements under the WTO
establishment of a process to take comments into
account without discrimination .
For points in No. 3. (b), (c), and (d) Albania had already amended  legislation in order to ensure conformitywith the Agreement on SPS. The Decision of the Council of Ministers “On the Approval of the SPSAgreement of the WTO”, No. 472 dated 6 October 1999 and the Order of the Prime Minister, No. 129 dated18 September 1999, required that drafts be provided prior to publication for comments at an early stage andnotification of new measures for all existing laws related to SPS (i.e., those listed in 3. (a) and any other that
may have relevance to SPS).  The Order also applied to  future laws affecting SPS.
4.  The Law on State Sanitary Inspectorate (Article I,Sections 5-8, and Article II) defines measures that
apply only to protect human, animal an/or planthealth.  All inspectors (chemical and physicallaboratories, toxicological , bacteriological) operate
according to this law and inspections are based onscientific criteria.4.  Article 2.2
5. The Law on State Sanitary Inspectorate (Article I,
Sections 5-8, and Article II) defines measures that
apply only to protect human, animal an/or planthealth.  All inspectors (chemical and physicallaboratories, toxicological , bacteriological) operate
according to this law and inspections are based onscientific criteria.5.  Articles 2.2, 3.3 and 5.2
6.  The Law on State Sanitary Inspectorate (Articles
I-III) provides for harmonization, i.e., will follow
international standards, guidelines, andrecommendations in establishing SPS measures.6.  Articles 3.1, 3.3 and 3.4
7.  The State Sanitary Inspectorate (Articles I-II)
provide for equivalence, i.e., recognizes differentmeasures that achieve the same level of protection.7.   Article 4
8.  The Law on State Sanitary Inspectorate (Articles
I-III) provides for risk assessment by developingscientific evidence and conducting risk assessments
to ensure that measures are based on science and
applied only to the extent necessary to protecthuman, animal, plant health.8.  Article 5.1, 5.2 and 5.3
9.  The Law on State Sanitary Inspectorate (Article I)
and the provides for consideration of regionalconditions, i.e., measures that take into account theregional characteristics both of the areas from which
products originate and the areas for which they are
destined.9.  Article 6 and Annexes A.6 and A.7
10. The Law on State Sanitary Inspectorate (Articles
I-II) provides for non-discrimination, i.e., measuresdo not arbitrarily or unjustifiably discriminatebetween different members or between domestic andforeign suppliers.  Sub-legal acts define how samples
are taken, and the procedures of an examination and
its duration.  The practices are transparent for allsubjects that are under control.10.  Article 2.3, and Annex C.1(a) and (d)
11.  The Law on State Sanitary Inspectorate provides
for the control, inspection and approval procedures,e.g., to ensure that procedures, including systems forapproval of the use of additives or for establishing
tolerances for contaminants in foods, beverages or
feedstuffs comply with the Agreement.11.  Article 8 and Annex CWT/ACC/ALB/51
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106. In response to further questions the representative of Albania stated that the Ministry of
Agriculture and Food and the Ministry of Health were the authorities responsible for making
notification and ensuring transparency obligations regarding SPS measures to the Directorate of
Standardization, and it was the Directorate of Standardization which was the authority responsible to
making the notifications to the WTO to ensure transparency obligations are met on an ongoing basis.The address, phone and fax numbers, and e-mail address appeared in the preceding table.
107. She further added the passing of an Order of the Minister of Economic Cooperation and Trade
"On the creation of the Inter-Agency Working Gr oup for the Drafting of Decisions of the Council of
Ministers on approving the WTO Agreement on SPS" (No. 55 dated 24 August 1999).  A Decision of
the Council of Ministers has been enacted enti tled on the Approving of the WTO SPS Agreement",
No. 472 dated 6 October 1999 to ensure compliance with the requirements of the Agreement on SPS
and to ensure that publication of proposed measures at an early stage for comment was required, thatcopies of proposed measures would be provided to  WTO Members by the time of accession and that a
reasonable period of time for comments from Members and the public, and the establishment of a
process to take comments into account without discrimination.
108. The representative of Albania confirmed that Albania would apply all obligations under the
WTO Agreement on Sanitary and Phytosanitary Measures from the date of accession without recourseto any transition period.  The Working Party took note of these commitments.
Trade-Related Investment Measures
109. In response to questions concerning trade-related investment measures (TRIMs), the
representative of Albania said that Albania did not maintain any TRIMs.  The Albanian Investment
Law, No. 7764 of 11 February 1993 was compatible with the national treatment requirements of theWTO.  She confirmed that there are no local content requirements imposed on foreign or domestic
firms to purchase or use products of Albanian orig in or from any Albanian source, nor did Albania
require that a firm's, foreign or domestic, purchases or use of imported products be limited to an
amount related to the volume or value of the local products it exports.  She recalled that a document
on TRIMs (WT/ACC/ALB/30) noted all restrictions on investment applied also to Albanian firms.She further added that Albania confirmed that there were no provisions that restricted imports, by
foreign or Albanian firms, to an amount related to the quantity or value of the product exported; that
there were no export performance requirements of any sort for foreign or Albanian firms; and that
there were no trade-balancing requirements in the Law, neither in its intention nor in practice, which
apply in the case of a foreign or Albanian firm.
110. The representative of Albania stated that Albania would not maintain any measures
inconsistent with the TRIMs Agreement and would apply the TRIMs Agreement from the date ofaccession without recourse to any transition period.  The Working Party took note of this
commitment.
State Trading Practices
111. Some members of the Working Party asked Albania to list the major State-owned enterprises
and the products covered,  whether Albania considered that any of the enterprises should be notifiedunder Article XVII of the GATT 1994, or Article VIII of GATS, if these enterprises were subject to
any form of Government control, including directives in relation to their operation, if these enterprises
were free to purchase and sell goods on the international markets and to acquire imports from any
origin, and whether the persons working for these enterprises were Government employees and to
describe the role of agroexport in the trade and internal distribution of agricultural products inAlbania.  Noting that important sectors of the Albanian economy appeared to be dominated by sole
enterprises, including: research with minerals – GJEOALBA corporation; chrome mining, processing
and smelting – ALBCHROME corporation; copper mining, smelting and production – ALBCOPPER;WT/ACC/ALB/51
Page 41
and production of electric energy by hydro and thermal plants – the Albanian Electroenergetic
Corporation (KESH), some members of the Working Party asked Albania to provide the profile of the
Albanian trading enterprise Arteksport-Import and similar profile reports for the following
enterprises:  ALBPETROL, GJEOALBA, ALBCHROME corporations, ALBBAKER and KESH.  In
their view these enterprises had an effective monopoly, granted by the licence, to dominate the leveland direction of imports and exports of fuel and gas services.  Albania was requested to provide
detailed information on these enterprises in accord ance with the requirements of the Questionnaire on
State-trading.  A Member asked Albania to name the petroleum firms and the other state trading firms
that trade in products under licence as state trading enterprises.  In its response, the representative of
Albania named SH.A. Armo that is 100 per cent ow ned by the state, and SH.A. Petrolimpeks, which
is 51 per cent state-owned.  All other companies are private.
112. In response the representative of Albania said that Albania did not consider that any of the
enterprises should be notified under Article XVII of the GATT 1994 or Article VIII of GATS.  None
of the enterprises listed were subject to any form  of Government control, including directives in
relation to their operation.  None of the enterprises,  including those considered "strategic enterprises"
and no private firms had any exclusive right of importation or exportation of any products.  All the
enterprises were free to purchase and sell goods on the international markets and to acquire importsfrom any origin. She confirmed that none of the State-owned enterprises, including firms labelled
"strategic enterprises", and no private firms had an exclusive right of importation or exportation of
any product.  Seventy eight per cent of exports were generated by privately owned enterprises.  The
persons working for these enterprises were considered Government employees only because the
enterprises were State-owned but were paid from the company and not the state budget.  Agroexportin the trade and internal distribution of agricultur al products did not have any advantage or privileges
over the State-trading enterprises.  Th e operations of KESH, ALBCHROME, ALBCOPPER,
ALPETROL corporation were based on the Law on "Commercial Enterprises", No. 7638 dated
19 November 1992, which provided the same conditions and rules for public and private enterprises.
Based on that Law, there were no exclusive rights for these enterprises.  Commercial enterprises wereunder the reconstruction process, and preparing to be privatised.  These enterprises were not operating
under licence that could affect the export-import regime, except in respect of the items prescribed in
the Memoranda on Import Licensing and Prohibiti ons on Importable Products and Export Licensing
and Prohibitions on Exportable Products.
113. She further noted that in November 1998, with a joint action plan with the Ministry of Public
Economy and Privatization (MPEP), Albania had defined the schedule of actions needed to accelerate
the privatization in the trade sector.  Only ten enterprises and five branches of NSHPN in the districtsremained under the supervision of the Ministry.  According to the privatization platform, they were
subdivided into: Enterprises in direct privatization, which shall proceed according to the Decision of
the Council of Ministers No. 195 dated 20 March 1996 "On the privatization of enterprises that cannot
be transformed", this group included:  Durres Tr ade Enterprise; Tirana Albcoop, Machinery-impex in
Tirana as well as the branches in Bulqiza, Fier, Kukes, Sarande and Tirana.  These enterprises hadalready interrupted their activity, underwent big damage and looting during the unrest of 1997, losses
that could not be covered by them.  For the above- mentioned enterprises, the valuation of State-owned
property had concluded and further privatization procedures were being followed through MEPP.
Enterprises that would be transformed into commerci al associations and later privatised were Agro-
export, Industrial-Impex, Artexport and the Fridge Unit No. 2 in Tirana and the Fridge unit in Durres.These enterprises were in a good economic and financial condition.  The fridge unit in Durres and the
fridge unit No. 2 in Tirana, had been registered as share holder companies.  The privatization of these
enterprises would start in June 1999.  The enterprise of Albcontrol Durres would be transformed into
shareholder company according to the Decision of the Council of Ministers No. 78 dated
21 January 1999.  The Law on State Enterprises of 17 July 1992 provided in Article 15 that the Statedoes not guarantee the obligations of State enterprises towards third parties.WT/ACC/ALB/51
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114. The representative of Albania confirmed that after accession to the WTO Albania would
observe the provisions of Article XVII of the GATT 1994, the WTO Understanding on that Article,
and Article VIII of the GATS regarding state trading, in particular abiding by the provisions for
notification, non-discrimination, and the applica tion of commercial considerations for trade
transactions for any firms covered by these provisions.
115. The representative of Albania confirmed that her Government would apply its laws and
regulations governing the trading activities of State-owned enterprises and other enterprises with
special or exclusive privileges as defined in Article XVII of the GATT 1994 and the Understanding
on that Article and Article VIII of the GATS in conformity with the provisions of the WTO
Agreement.  She further confirmed that Albania wo uld notify any enterprise falling within the scope
of Article XVII.  The Working Party took note of these commitments.
Free Zones, Free Economic Zones
116. Some members of the Working Party noted Albania had a 1996 Government Decision
providing for the establishment and organisation of the National Entity for the Development of Free
Zones, which would have direct dependence on the Government, requested a description of its
provisions, whether any free zones have been esta blished and asked Albani a to explain what was
meant by direct dependence from the Government, could foreign enterprises locate in the zones on thesame basis as domestic enterprises, how would the operation of the free zones be administered,
directly by the Government or through an exclusive licence granted by the Government, and whether
there would be trade-related  investment measures  applicable to enterprises operating in the free
zones.  In response the representative of Albania said that a new draft law and a draft regulation on
"Free Zones" had been presented to the Parliament for approval.  A copy of this draft law would bemade available to the WTO.  According to these drafts the Council of Ministers would decide from
which institution would depend the National Agency for Free Zones.
117. The representative of Albania stated that establishment of a free zone, the determination of its
borders and the legalisation of activities to be performed by the zone, could only be done by the
Council of Ministers, following approval from the Head Council of the National Agency for FreeZones and the General Directory of Customs.  The selection of the companies was made according to
the procedures defined in the Regulation of Free Zones based on measurable economic criteria:
capital, time and rent.  Free zones could be established in private or State sites and could be
administered by a private or State operator, who would be granted a licence after application to the
National Agency for Free Zones and the approval of the Parliament.  Free zones were not considered
outside the customs territory.  All the goods entering the zone from the internal market were not
considered as exported goods and all the goods going out from the zone to the internal market werenot considered as imported goods.  All juridical or physical persons, domestic or foreigners, had equal
possibilities to operate in a free zone, if they fulfilled the criteria defined in the application procedures
specified in the draft regulations of the free zone.  Up to now Albania had not established any free
zone, but there were feasibility studies for establishing two free zones.
118. The representative of Albania stated that any free zones established within the territory of
Albania would be fully subject to the coverage of Albania's commitments taken in its Protocol of
Accession to the WTO Agreement, and that Albania would ensure enforcement of its WTO
obligations in those zones.  In addition, goods produced in these areas under tax and tariff provisions
that exempt imports and imported inputs from tariffs and certain taxes will be subject to normal
customs formalities when entering the rest of Alba nia, including the application of tariffs and taxes.
The Working Party took note of these commitments.WT/ACC/ALB/51
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Mixing regulations
119. In response to questions from Working Party members, the representative of Albania
confirmed that it had no law or regulation requiring the use of domestic and imported goods in certain
proportions or any other sort of mi xing regulations applied to imports.
Government-mandated counter-trade and barter
120. Some members of the Working Party asked whether Albania maintained government-
mandated counter-trade or barter and, if barter trade has permitted under Albanian Law, whether
duties, taxes and other restrictions and requirements applied to imports and exports conducted as
barter or counter-trade. In response, the representa tive of Albania stated that although Albania did not
have any provisions in its Customs Code or any other law regarding non-mandated barter, it was
permitted.  However, imports and exports conducted as barter or countertrade could not benefit from
exemptions of duties, taxes, and other restrictions and requirements that applied under the traderegime.
Government Procurement
121. Some members of the Working Party asked for information on statistics on procurement, the
overall value of public sector purchasing in Al bania, a breakdown of the public procurement market
both by contracting entity and product type, whether all foreign suppliers received the same treatmentas national suppliers when participating in tenders, if there was an offset policy and, if so, how often
were offset arrangements negotiated on a case-by-case basis, whether Albania's law made provision
for a system of domestic and price preferences, if the procurement of certain products was reserved
for local industry, if Albania had any trade agreements with other countries which covered public
procurement, if so which countries.  Finally, they asked if Albania would intend to accept theAgreement on Government Procurement.  In response the representative of Albania referred to the
laws, decisions and guidelines on government procurement listed in document WT/ACC/ALB/41 and
to the Memorandum on Compliance with the Agreement on Government Procurement
(WT/ACC/ALB/42).  She said that the following documents would be approved by the Council of
Ministers:  Law “On Some Changes to the Law on Public Procurement”; Draft Decision of the COM“On Some Changes in the Decision of the COM, On Rules on Public Procurement, No. 12 dated
1 January 1996”. This Decision should approved the following documents
: Manual of Public
Procurement; Document for the Tender for the Pre-qualification of Goods; Document for the Tender
for the pre-qualification of Construction, Document for the Tender for the Procurement of Goods (Big
and complex); Document of the Tender for the Procurement of Systems (Big and Complex),
Document for the tender for the Procurement of Construction (Big and Complex); Document for theTender for the Procurement of Complex Services (Based on time periods and their total value), and
Document for the Tender for the Procurement of Simple Services (Based on time periods and their
total value).  The preparation of an amendment to the Public Procurement Law would provide the
collection of procurement statistics was under cons ideration.  She further noted that the following
legislation would be put in place by the end of 2000:  "The Standard Tender Document for the
Pre-Qualification of Goods";  "The Standard Tender Document for the Pre-Qualification of
Construction"; and "The Standard Tender Document for the Procurement of Goods (Those which areLarge and Complex)".  In addition, the followin g Decisions would be enacted to provide for
transparent rules in relation to the submission of tenders in the opened sectors: 4. "The Standard
Tender Document for the Procurement of Systems (Those which are Large and Complex) for
Telecommunication, Information Technology"; 5. "The Standard Tender Document for the
Procurement of Construction (Those which are Large and Complex)";  "The Standard TenderDocument for the Procurement of Whole Services (Those which are Large and Complex)";  "The
Standard Tender Document for the Procurement of Complex Services (for which the Value and
Duration are Specified); and "The Standard Tender Document for the Procurement of Basic Services
(for which the Value and Duration are Specified)".WT/ACC/ALB/51
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122. She further noted that the overall value of public sector purchasing in Albania for 1996 was
about US$365.8 million.  This amount represented about 13 per cent of the GDP.  Currently the
Government of Albania could not provide a breakdown of the public procurement market.  This
would be possible only when the law provided the collection of statistics on procurement.  According
to Article 9 of the Public Procurement Law No. 7971 of 26 July 1995 no discrimination was allowedon the basis of nationality.  Procurement proceedings were open for all tenderers on equal terms,
regardless of nationality, type of ownership and juridical form.  National treatment meant that a
foreign supplier, foreign products or services must be treated no less favourably than domestic
suppliers and products.  There was no offset policy or any other offset arrangements negotiated on a
case-by-case basis.  Albania's procurement law did no t make any provisions for a system of pricing,
therefore there were no mandatory or optional price preferences.  The procurement regime did not
reserve certain products to local industry, consequently there were no lists of products reserved forlocal industry.  Albania did not have any trade agreements with other countries which covered public
procurement.  According to Article 43 of the Albanian Public Procurement law, in case a tenderer was
not satisfied with the decision by the procuring entity, or the decision was not made within the time-
limit, the tenderer could challenge the decision an d file a complaint with the Public Procurement
Agency.  The Albanian Government would amend the existing law on public procurement to providethe right for further appeal.  Upon accession Albania would initiate negotiations to join the Agreement
on Government Procurement by tabling an entity list and would intend to conclude the negotiations
within a year of that date.
123. The representative of Albania confirmed that, upon accession to the WTO, Albania would
initiate negotiations for membership in the Ag reement on Government Procurement by tabling an
entity offer.  She also confirmed that if the result s of the negotiations were satisfactory to the interest
of Albania and the other members of the Agreem ent, Albania would complete negotiations for
membership in the Agreement by 31 December 2000. The Working Party took note of these
commitments.
Agricultural Policies
124. Some members of the Working Party, whilst recognising that Albania might have good policy
reasons for the export prohibitions on firewood and other unprocessed wood, cattle hides, raw skins of
sheep and lambs and other hides and skins, they noted that export bans were prohibited under Article
XI of GATT 1994 unless justifiable under WTO pr ovisions and asked Albania to find WTO-
consistent measures to achieve its policy goals.  Noting that Albania had not used agricultural export
subsidies in the past they sought confirmation that Albania would bind export subsidies at zero.
Albania was asked to prepare tables on domestic support and export subsidies and to present data for arecent base period, normally the most recent three years, for which complete and final data in the form
of actual expenditures were available.  For each table, data should cover each of the three years, not
just the average.  Expenditures relating to fisheries should not be included.  Expenditures relating to
the upkeep of buildings and other administrative costs, unless directly related to the provision of a
specific service, should also be omitted.  Although there were no expenditures listed, Albania shouldbe aware that Programmes funded by international projects did not need to be included in the
domestic support submission.  The support for flour  for making bread, which functioned as a price
control on flour rather than as a market price support for grain producers, did not have to be included
in the AMS.  If Albania set an applied administered price for wheat or other grains, or provided any
other product-specific subsidy, the support should be included in the AMS.  Albania was also asked toprovide information concerning the purchase and sale of grain.
125. Albania had supplemented the documentation on export licensing with HS codes, and had
indicated that it would comply with WTO principles.  Albania eliminated all export prohibitions with
the approval of the Decision of the Council of Mi nisters “On the Export-Import Regime of Goods for
and in the Republic of Albania”, No. 450 dated 16 September 1999.  Albania bound export subsidiesfor agricultural commodities at zero as indicated in  the revisions to the Schedule of agriculture,WT/ACC/ALB/51
Page 45
(document WT/ACC/SPEC/ALB/4/Rev.4).  The figures in the schedule on agriculture referred to
actual expenditures.  Albania did not maintain subsidies of any sort on agricultural commodities.  The
revised schedule on agriculture had provided greater detail in the descriptions of the green box
measures (including the 12 research institutions) and the data had been disaggregated into the last
three years (1996-98).   The programmes related to fisheries had been excluded from the revisedschedule.  The restoration of public buildings referred to the civil unrest of 1997 where Government
buildings were looted and had suffered physical structural damage requiring reparations.  Albania
maintained buffer stocks of grain, but the volume of grain had been decreasing steadily.  The volume
kept under State reserves represented less than one per cent of 1998 domestic consumption and the
program did not affect prices because the grain was sold at auction.  The quantity kept under State
reserves was being reduced as a commitment taken in the framework of the Enhanced Structural
Adjustment Facilities (ESAF) program of the IMF.  Input subsidies generally available to low income
or resource-poor producers were made in each of the years 1996-98 and were included in the revised
schedule on agriculture.  The program was discontinued in 1998 and no water subsidies were
provided in 1999.  No other input subsidies existed.  The computations of AMS data covered each
year 1996-98.  Since the price ceiling for bread was removed in 1996, there was no support for
agriculture and the AMS calculations were zero.
126. Albania's commitments on agricultural tariffs, on domestic support and export subsidies for
agricultural products are in the Schedule of Concessions and Commitments attached to the Protocol of
Accession to the WTO.
Trade-Related  Intellectual Property Regime
127. Some members of the Working Party requested details about legislation and the enforcement
of intellectual property rights protection in Albania and the compatibility with the requirements of the
TRIPS Agreement.  Specific questions were addressed regarding exceptions from national or MFN
treatment, right holders' exclusive rights, terms of protection, compulsory licenses, judicial review,
copyright, trademarks, industrial designs, patents and competition.  In response, the representative of
Albania noted that Albanian borders were controlled by the central customs authorities of theAlbanian State.  In Albania there was already an established system of border measures for the
prohibition of counterfeit or pirated goods that infringe and violate intellectual property rights .  This
system was based on “The Implementing Provisions on Customs Code” set out in the Decision No.
205 of the Council of Ministers, points 118-120 dated 13 April 1999 , and was aimed at an effective
guarantee of the enforcement of intellectual property rights in Albania in compliance with the TRIPS
Agreement.
128. The representative of Albania said that Albania was a member of the Convention Establishing
the World Intellectual Property Organisation, the Paris Convention for the Protection of Industrial
Property, the Berne Convention for the Protection of Literary and Artistic Works, the Madrid
Agreement Concerning the International Registration of Marks, and the Patent Co-operation Treaty,
the Extension Agreement between EPO and Alba nian Patent Office. On 16 February 2000, the
Parliament of Albania approved the law No. 8579 “On the adherence of the Republic of Albania in the
International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting
Organizations” (Rome, 26 October 1961) and, on 15 March 2000, it approved the law No. 8585 “On
the adherence of the Republic of Albania in the Convention for the Protection of the Producers of
Phonograms against Unauthorized Duplication of their Phonograms” (Geneva, 29 October 1971). The
representative committed Albania to ensure domestic ratification of WIPO Treaties by October 2000,and to deposit the instrument of ratification to WIPO immediately thereafter. Procedures for the
deposit of the relevant instruments were processing .  Article 1 of Albania’s Law on Industrial Property
identified the following as objects of the Law:  patents for inventions and utility models,  trademarks
and service marks, industrial designs, and appe llations of origin.  In document WT/ACC/ALB/36
Albania submitted a detailed Memorandum on the Conformity of Albania's Intellectual PropertyRegime with the provisions of the TRIPS Agreem ent. Albania accorded national treatment to theWT/ACC/ALB/51
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citizens of member countries of the Paris Conventi on or to those citizens who have an industrial or
commercial enterprise in a member country.  In Law No. 8477 dated 22 April 1999, “On Some
Changes and Supplements to Law No. 7819 dated 27 April 1994, For Industrial Property”, there was
an additional Article that determines the above-men tioned treatment.  On a more general basis, this
right was set forth in Articles No. 50 and 100 of the current Law on Industrial Property. The AlbanianLaw On Competition included a No. of Articles that deal with the regulation of competition (Articles
24-26) or with the prevention of illegal actions in competition with the purpose of gaining advantages
(Articles 37-42).  According to point 3 of Article 10bis of the Paris Convention, the Albanian Law
“On Competition” foresaw the prevention of the actions that intend to create confusion (Articles 43
and 27.1 and 27.3); the prevention of the false allegations that intend to discredit the competitor
(Articles 42,30.2 and 27.1) and the prevention of false allegations that created a false image about the
characteristics of the goods of the competitor (Articles 27.2, 5 and 6).
Substantive Standards of Protection
Copyright and related rights
129. In response to questions concerning the administrative formalities requirements for the
enjoyment of copyright, whether free uses of computer programs were restricted to back-up copies
and decompilation, the preparation of legislation on layout designs  of integrated circuits and onborder enforcement, the representative of Albania said that the Albanian Law on Copyright foresaw
no formal administrative requirements for the enjoyment of copyright.  According to Article 7 of the
Law No 8594 dated  6 April 2000 “On some Supplements and Changes on the law No. 7564 dated
19 May 1992, On Copyright”, article 51 of the Law on Copyright was changed and its points a), b), c)
foresaw that the provisions of this law shall apply to:
a) Works the author of which has Albanian citizenship or lives permanently in the 
Republic of Albania, regardless of the country where they were published for the first
time;
b) Works published for the first time in Albania or in a country that is a member of an 
international Copyright treaty or conventi on to which Albania is also a signatory;
c) Works published for the first time in a country that is not a member of an 
international Copyright treaty or convention, to which Albania is a signatory, when 
the works are published simultaneously in the territory of this country and in the 
Republic of Albania or in another country which is a signatory to the international 
Copyright treaty or convention.
The representative of Albania said that computer programs were included in the Albanian Law “On
Copyright”. Article 13 of that law defined the ri ght of the lawful owner of a computer program to
make a copy or an adoption of such a program wit hout the author's authorization, in cases where this
adoption was necessary for the use the computer program for the purposes for which the program had
been lawfully obtained; and for archival purposes  and if necessary for the replacement of the copy
lawfully obtained. Article 14 of that law defined the conditions in which authorization of the authorwas not required.
130. Albanian Law “On Copyright” provided the protection to computer programs and data
compilations required by Article 10(2) of the TRIPS Agreement and it fully complies with "whether
in machine readable or other form".  Chapter III of the Albanian Law “On Copyright” defined the
exceptions and limitations of a copyright as well as related rights.  In accordance with Article 6 of thelaw, free reproduction for private purposes shall be permitted, without the author's authorization and
without payment or remuneration, to reproduce a lawfully published work exclusively for the users'
own private use (including use for scientific and research purposes).  This provision shall not be
applied in respect of :  the reproduction of works of architecture in the form of buildings or similar
constructions;  the reprographic reproduction of works of fine arts of restricted edition, of graphicWT/ACC/ALB/51
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presentation of musical works (sheet music) and of exercise books or other one-use publications;  the
reproduction of computer programs except for cases mentioned in Article 13 of the Albanian Law;
any other reproduction that would conflict with the normal exploitation of the work or would
prejudice the legitimate interests of the author.
131. According to Article 8 of the Albanian Law “On Copyright”, the free use for teaching was
permitted without the author's authorization and wi thout payment of remuneration, but subject to the
obligation to indicate the source and the name of the under specified conditions. Article 9 defined the
rights and exceptions of the free reproduction by Libraries and Archives. Article 10 of the Albanian
Law “On Copyright” dealt with the rights and exceptions of the free reproduction for legal and
administrative purposes. It defines that such reproduction was permitted without the author's
authorization and without remuneration to reproduce a work for court or administrative proceedings to
the extent justified by the purpose. Article 11 of this law also defined the rights and exceptions of thefree use for information purposes. Article 12 of the law defined the limitations of the free use of
pictures of works permanently located in public places. According to this Article, it shall be
permitted, without the author's authorization and without payment of remuneration, to reproduce
broadcast or communicate to the public by cable a picture of a work of architecture, a work of fine art,
a photographic work or a work of applied art that is permanently in a public place (square, street,park, etc) except if the picture of the work is the main subject of such reproduction, broadcasting or
communication and if it is used for commercial purposes.
132. In response to further questions, the representative of Albania stated that the Albanian Law
“On Copyright” provided for terms of protection of different works. Concerning the retroactive effect
of the Law, the representative stated that in the Constitution of the Republic of Albania, Article 122/1,it is set forth that any internationa l agreement, that has been ratified, constitutes a part of the internal
juridical system of Albania.  In addition to this, point 2 of this Article sets forth explicitly:  "An
international agreement that has been ratified by law has superiority over laws of the country, that are
not compatible with it."  Within this framework,  by the Decree No. 487 dated  9 March 1993 of the
President of the Republic of Albania, Albania has adhered to the Berne Convention for the Protectionof Literary and Artistic Works. Consequently, the application of the Convention is superior to the
Albanian Law on Copyright.  Moreover, in conformity with Article 18 of the Berne Convention,
Albania, with its Law “On some Supplements and Changes on the law No. 7564 dated 19 May 1992,
on Copyright”, has specified that the provisions of the law “On Copyright” shall apply also to “works
created before the moment this law came into force but have not yet fallen into the public domain
through the expiry of the term of protection afforded under this law” which is in full conformity with
Article 18 of the Berne Convention. With regard to whether the issue had been explored in court sinceAlbania's adherence to the Berne Convention, the Albanian representative answered no.
133. She further added that Articles 13 and 14 of the Law “On Copyright” defined the limitations
and exceptions for the free reproduction and adaptation as well as free decompilation of computer
programs.  The provisions of this section may not be interpreted in such a way as to allow its
application to be used in a manner which conflicts with a normal exploitation of the computerprogram or that unreasonably prejudices the legitimate interests of its author. Article 15 of the
Albanian Law defined that a broadcasting organi zation can record for temporary use, by its own
means, a work on which it enjoys this right without the author's authorization and without special
remuneration. Article 16 of the law defined the limitations on the free public performance.
Trademarks
134. In response to questions concerning the registration of well-known trade marks and the
protection of trade names, the representative of Albania said that Article 76 of the Law on the
Industrial Property refused to register a trademark when it infringes the rights of a well-known
trademark.  The definition of a well-known trademark as such was done by the Office of Patents
according to the information received by the cons umer as well as information received by theWT/ACC/ALB/51
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International Bureau of the Registration of Trademarks in Geneva, the Office of the Trademark
Registration of the European Community in Alican te, Spain, and homologue offices in Europe and
elsewhere, with which the Albanian Office of Patents kept regular contacts.  In accordance with
Article 8 of the Paris Convention, the Albanian Law “On Industrial Property” included no provision
that obliges the registration or the depositing of a commercial name. Article 18 of the “Law on the
provisions that regulate the first part of the Commercial Code” sets forth that within one month from
the day of the beginning of a commercial activity, the trader should announce his or her name and
should deposit his or her original signature at the court appointed to keep the commercial register.
135. With reference to the five years period before allowing a mark to be cancelled for non-use,
the representative of Albania said that when use was required to maintain a registration, the
registration may be cancelled only after an uninterrupted period of non-use for at least three years,
(amended by Article 12 of the Law  No 8477 dated 22 April 1999 “On some Changes andSupplements on the law No 7819 dated 27 April 1994, For Industrial Property”) unless there was a
valid reason to explain the inactivity, such as the existence of some obstacle in production or
marketing encountered by the owner of a registered item.  The legal use of a trademark by a third
party would be recognized as use of the trademark for the purpose of mainta ining the registration. The
representative of Albania added that a sign shall not be protected as a mark, if its use as a mark wouldbe in conflict with earlier rights.  The following, in particular shall be considered as earlier rights:  an
identical or similar mark of a third party, in respect of identical or similar goods or services;  in
respect of goods or services which are neither identical nor similar which have an earlier filing date or
priority date, and which have been registered or subsequently will be registered;  a well-known mark
of a third party within the meaning of Article 6 bis of the Paris Convention for the Protection of
Industrial Property.  For the definition of a well-known mark, the information of the consumers about
the mark will be taken into consideration.  The trademark registrar had the same responsibilities as the
Patent Office.
Geographical Indications
136. In response to questions from members of the Working Party, the representative of Albania
stated that Chapter XXVI, Article 93 of the Albanian Law "On Industrial Property" deals with
appellations of origin. In this Article were mentioned when the appellations of origin were used and
what could be protected.  Articles 13, 14 and 16 of the Law "On some Changes and Supplements on
the Law No. 7819, 27 April 1994, On Industrial Property" made clear that such appellations could not
be used by persons who were not authorized even if those persons added the words "Type" "Style"
etc., or when, although literally true as to the territory, region or locality in which the goods
originated, those appellations of origin falsely represented to the public that the goods originate inanother territory.
Industrial Designs
137. The representative of Albania said that the Albanian Law "On Industrial Property" Part II,
Article 59 gives the definition and conditions of pr otection for industrial designs, explaining that
textile designs are included in this protection. Articles 60-69 provide the right of protection, theprocedures for registration, the temporary protection of industrial designs exhibited at international
exhibitions, etc.
Patents
138. The representative of Albania noted that the Law "On Some Changes and Supplements on the
Law No. 7819 dated 27 May 1994 for Industrial Property", No. 8477 of 22 May 1999, had created theAlbanian Directorate of Patent and Trademarks.WT/ACC/ALB/51
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139. In response to questions concerning compulsory licenses, Albania's implementation of the
TRIPS rules on enforcement of intellectual property  rights and whether inventions relating to plants
and animals were excluded from patentability in Albania,  the representative of Albania said that in
order to be patentable, an invention shall be novel, shall involve an inventive step and shall be
industrially applicable.  The following, in particular, shall not be regarded as inventions within themeaning of paragraph (1):  discoveries, scientific theories and mathematical methods;  aesthetic
creations;  schemes, rules and methods for performing mental acts, playing games or doing business,
and programs for computers;  presentations of information.  A patent shall not be granted in respect of
an invention of which the publication or exploitation would be contrary to public order or morality.
No patents shall be granted for substances obtained through internal nuclear transformations for
military purposes.  No patents shall be granted for inventions of surgical, diagnostic or therapeutic
methods practised on the human or animal body, as they shall be regarded as inventions that are notsusceptible to industrial application.  This provision would not apply to inventions relating to
substances and devices for use in any of these methods. The new varieties of plants and the new
breeds of animals were excluded from the patentability, when their creation had to do with essential
biological processes for their production.  This wa s not valid for microbiological processes or their by
products.
140. The representative of Albania added that on the request of any person who proves ability to
work the patented invention in the Republic of Albania, made after the expiration of a period of four
years from the filing date of the application for the patent or three years from the grant of the patent,
whichever is later, the Patent Office may grant a non-exclusive, non-voluntary licence if the patented
invention was not worked or was insufficiently worked in the Republic of Albania. The grant of anon-voluntary licence shall be subject to the paymen t of equitable remuneration to the owner of the
patent.  A non-voluntary licence shall not be granted if the Patent Office was convinced that
circumstances exist to justify the non-working or insu fficient working of the patented invention in the
Republic of Albania.  In deciding whether to gr ant a non-voluntary licence, the Patent Office shall
give both the owner of the patent and the person requesting the non-voluntary licence an adequateopportunity to present arguments.  Any non-voluntary licence shall be revoked when the
circumstances which led to its granting ceased to exist, taking into account the legitimate interests of
the patent owner and of the licensee. The continued existence of these circumstances shall be
reviewed upon request of the patent owner. The new Customs Code as well as the dispositions passed
for its implementation, the Code of the Civil Procedure and the Penal Code, in separate Articles
foresaw a strict defence of the interests of the owners of intellectual property objects.
141. The representative of Albania noted that the registration and pharmaceutical products is
carried out according to the relevant legislation. The registration of plant protection products is done in
accordance with the Law No. 7662 dated 19 January 1993, "On Plant Protection Service" and the
Decision of the Council of Ministers No. 584 da ted 6 December 1993 “For the Approval of the
Regulation for pesticides used in agriculture” according to which, each product, despite the
bioequivalence, must equally undergo the registration procedures. Therefore, each applicant, in orderto obtain the marketing right, must register the product by submitting the registration file with its
original data. The duration of the registration lasts ten years. All applicants for registration are
approved if criteria are met. The duration of the registration for pharmaceutical products lasts five
years. Each pharmaceutical product despite the bioequivalence, must equally undergo the registration
procedures. Each applicant, in order to obtain the marketing right, must register its product bysubmitting the registration file including its original data. All applicants for registration are approved
if the criteria are met. The registration file for agricultural and pharmaceutical products registered
through the abovementioned procedures, remain confidential. Their data are only disclosed to the
registration commission members. In the case of fertilizers, the registration process does not involve a
commission or formal procedures, only to provide information related to the quality, the sort ofproduct and the relevant characteristicsWT/ACC/ALB/51
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142. Concerning data submitted to obtain marketing approval of pharmaceuticals, the
representative of Albania stated that the procedure was provided in the regulation "On the
Registration of Drugs in the Republic of Albania" as follows:  each pharmaceutical company
submitted the dossier for any drugs to be marketed along with the bioequivalent studies.  All this
information was protected and other applicants or third persons were not allowed to consult thisinformation.
Layout Designs of Integrated Circuits
143. The representative of Albania said that the Albanian Government had done extensive work on
developing a law on layout-designs of integrated  circuits based on Articles 35-38 of the TRIPS
Agreement.  The Patent Office would be the authority that administered the legislation.  A law "On
Protection of Topographies of Integrated Circuits had been enacted (No. 8488 dated 13 May 1999)
and had brought Albania's trade regime into conformity with the above-mentioned requirements.
Business Secrets
144. Regarding trade secrets, the representative of Albania stated that Article 49 of Law No. 8044
dated 7 December 1995, provided protection for business secrets. According to this article the
providing of business or operative secrets on the activity of the competitors in an illegal manner or
encouraging their employees in order to use or to sell them was prohibited. It was forbidden, to giveto others or to use business or operative secrets, knowledge which were provided during the relations
of employment or other confidential relations, during the term of these relations in order to gain some
advantages in the competition for oneself or for another third party or to damage the owner of any
commercial company. This obligation was valid for a period of two years after the termination of the
employment or the confidential relation if the owner of the business activity had a justified interestand if it did not lead to any unreasonable restriction of the business or the professional activity of
others.
145. She further added that Albania protected data submitted to obtain marketing approval for
pharmaceuticals or agricultural chemicals which used a new chemical entity.  For the protection of
their confidentiality, Point 12 of the Regulation of the Commission of the Verification ofManufacturing Conditions on Pharmaceuticals stated:  "After the verification from the Commission,
the documentation, which is confidential, is deposited in the National Center of Drugs Control
together with a copy of the authorization. The authorization to which this refers was that for
marketing.  This documentation is the exclusive ownership of the Albanian authorities which deal
with drug registration."  For the registration of pest icides used in agriculture, the State Commission on
Pesticides was set up in the Ministry of Agriculture and Food.  This Commission did not use
confidential data from other enterprises (Article 5 of the Regulation "On Pesticides Used inAgriculture")."
Enforcement
146. The representative of Albania noted that the Law on "The Customs Code in the Republic of
Albania", No. 8449 dated 27 January 1999, Article 82, Paragraph 4, gives the customs authorities the
competence to intervene, upon request of a holder of an intellectual property right  for stopping thefree circulation, export, re-export and place under suspension measures goods recognized as
counterfeit or pirated.  The procedures for such intervention by the customs authorities were set out in
a Decision of the Council of Ministers, No. 205 dated 13 April 1999, entitled "The Implementing
Provisions on Customs Code".  The first part of this decision defined counterfeit and pirated goods
according to Article 82 of the Customs Code. Title 9 defined the procedures of action of customsauthorities.  According to Point 119, the customs authorities took action after an application in written
form of the holder of the right, when the counterfeit or pirated goods were released for free circulation
export or re-export, placed under a transit procedure or a procedure with economic impact.WT/ACC/ALB/51
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147. She further added that the application of the holder of the right was required to be in written
form and contain a sufficiently detailed description of the goods to enable the customs authorities to
recognize them, a description of the period during which the customs officers were requested to take
action and any other useful information to identify the exporter and the importer.  The application was
required to be accompanied by proof that the applicant was holder of a trade mark, production licence,copyright etc.  The customs authorities would then examine the application, and notify the applicant
within five days whether it would be accepted.  When the application was accepted the decision of the
General Directorate was notified promptly to all customs offices.  This decision also specified the
period within which the customs authorities would intervene.  The decision could also require the
provision of a repayable deposit to cover any administrative charges occurred by the customs
administration for carrying out the action (including storing the goods).  If the applicant did not agree
with the given amount, the General Directorate was required to review it.
148. She further noted that point 120 of the Decision of the Council of Ministers, No. 205, defined
the control procedures for counterfeit and pirated goods according to the description of the rights’
holder.  When customs authorities proved that the controlled goods correspond with the description of
the applicant they suspended their release or seized the goods depending on the circumstances and
visible proof.  They then had to notify the applicant immediately about the action taken.  Inaccordance with the legislation in force regardin g the protection of professional, commercial and
industrial secrecy, the customs authorities notified the holder of the right of the name and address of
the declarant, and if known, the name of the c onsignee of the goods, with a view to allow the
applicant to take legal action against the consignee.
149. If the applicant asked to inspect the suspended or seized goods, the custom authorities would
allow him or her to do so.  After notification of the decision of the General Customs Directorate for
the suspension of seizure of the goods, the holder of the right had the right to appeal to the competent
judicial bodies for damages and to require compensation, but he or she had to notify the customs
authorities within 20 days.  If the right holder did not notify the customs authorities within 20 days,
the customs would suspend the decision for the suspension or seizure of the goods, and release thegoods.  If the alleged infringement was not proven, and damage has been incurred to the importer or
any third party as a result of the intervention of the customs authorities, the applicant was responsible
and liable to compensate for damages incurred.
150. In response to questions concerning the compliance of Albanian legislation with Article 61 of
the TRIPS Agreement, the representative of Albania stated that, according to Law No 8594 dated
6 April 2000, “On some Supplements and Changes on the law No. 7564 dated 19 May 1992, On
Copyright”, article 50 of the Law on Copyright was ch anged as follows:  a) the translation, adoption,
sound or visual recording, importation, reproduction and circulation, the entry of special instruments
for recording sounds and/or images, radio and/or television  broadcasting or transmission other than
through radio or television, or the transmission of an artistic work by any other means without the
authorization of its author or the agency to which the rights have been transferred by the author,
which conflicts with the provisions of this law or the international conventions ratified by the
Republic of Albania, when the author's moral and economic rights have been infringed, constitutes a
criminal work and is penalized by fine or imprisonment up to one year;  b) Disputes between the user
of an intellectual property work and the author or th e agency to which the rights have been transferred
by the author, because of a violation of the conditions specified in the contract concluded between
them, are submitted by the interested party to the relevant court for civil settlement. Apart from theabovementioned Article, Articles 147, 148 and 149 of the Penal Code are dealing with infringements
of the intellectual property rights In these cases, the prosecutor's office initiated the penal procedures
based on the complaint lodged by the right holder.
151. Some members of the Working Party noted that the general civil juridical system in Albania
applied to IPR cases and that provisional remedies were available.  They asked that Albania confirm
explicitly that a right holder is able under Albanian law to seek and receive an order for an ex parteWT/ACC/ALB/51
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search and seizure or apply for other appropriate injunctive or provisional relief.   In response, the
representative of Albania stated that Article 11 of the Law entitled "Some changes and supplements
on the Law No. 7819 dated 27 April 1994, for Industrial Property" No. 8477 dated 22 April 1999,
provided that:
"In addition to the measures specified in paragraph 2 (a) of article 89 of the "Law on
Industrial Property", the court may re-establish the situation that existed before the
infringement and to stop infringing actions, to proceed with an effective seizure of the
goods and, when necessary, to destroy illegally used marks, tools that could be used to
manufacture the goods and the goods themselves in absence of possibility to remove any
illegally mark from such goods."
She further noted that Article 19 of the cited Law above provided:
"The judicial authorities shall have the authority to order prompt and effective provisional
measures:  to prevent an infringement of any industrial property rights from occurring,
and in particular to prevent the entry into the channels of commerce in their jurisdiction
of goods, including imported goods immediatel y after customs clearance; and to preserve
relevant evidence in regard to the alleged infringement."
152. The representative of Albania confirmed that articles 42, 70 and 89 of the Law “On Industrial
Property” authorize the court to enjoin patent, trademark or industrial design infringements.  In the
Implementation Provisions on Customs Code, approved by the Council of Ministers on 13 April 1999,
it is mentioned that the holder of the right may lodge an application in writing at the General
Directorate of Customs for action after presenting proof that there are counterfeited or pirated goods.
When the General Directorate of Customs is convinced, it may suspend the release of the goods orseize the goods, depending on the situation.  In Article 292 of the Code of Civil procedure it is stated
“When an evidence on which depends the solution of the dispute or which influences its clarification,
is in danger of disappearing or its acquisition to become difficult, on the request of the interested
party, it may be ordered its acquisition in advanc e”.  Article 294 of the same Code states “in the
request for the securing of the evidence, must be shown: the evidence to be taken, the circumstancesfor whose proving it serves and the reasons which justify its acquisition in advance.  The copy of the
request is communicated to the other party, except wh en it is not known or when the acquisition of the
evidence does not allow delay.  In Article 274 of the “Code of Criminal Procedures” it is stated:
“When there is a danger that free possession of an object related to the criminal offence may
aggravate or prolong its consequences or facilitate the commission of other criminal offences, the
competent court will on demand of the prosecutor order its attachment by reasoned decision.
153. The representative of Albania stated that her Government would apply fully the provisions of
the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS) by the date of its
accession to the WTO without recourse to a transitional period.  The Working Party took note of this
commitment.
Trade in Civil Aircraft
154. The representative of Albania stated that Albania committed that at the time of accession its
imports on civil aircraft and parts will be zero.  Furthermore, Albania will be in conformity with the
Agreement on Trade in Civil Aircraft and will be ready to sign the Agreement at the time of
accession.  The Working Party took note of those commitments.
Policies Affecting Trade in Services
155. The representative of Albania submitted Albania's draft schedule of specific commitments in
services (WT/ACC/ALB/51/Add.1).WT/ACC/ALB/51
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156. In response to requests for information from members of the Working Party concerning the
various laws regulating trade in services in Albania, the representative of Albania provided the
following Table:
Table 10: Albania's Laws and Legislative Measures Affecting Services
Law or Legislative Measure No. Dated Affected Service or Service Providing Mode
"On Telecommunication
Regulatory Body"8288 18.02.1998 Telecommunication services
"On Telecommunications" 8083 Nov 1995 Telecommunications services
"For Road Transport" 8308 18.03.1998 Liberalizes transportation services
"On Insurance and Re-
insurance Companies"8081 07.03.1996 Liberalizes insurance services
"On the Bank of Albania" 8269 12.1997 Liberalizes banking services
"Banking of the Republic of
Albania"8365 02.07.1998 Liberalizes banking services
"On Sales and Purchase of
Sites"7980 27.07.1995 Liberalizes real estate transactions.
"On Fishery and Aquaculture" 7908 05.04.1995 Liberalizes other business services
"On Veterinary Service and
Inspectorate"7074 23.02.1993 Liberalizes business services
"On Legal Profession in the
Republic of Albania"8428 14.12.1998 Liberalizes professional services
"On Notary" 7829 01.07.1994 Liberalizes professional services
"On Higher Education in the
Republic of Albania"7810 06.04.1994 Liberalizes educational services
"On Foreigners in the
Republic of Albania"8492 27 May
1999Liberalization of mode 4.
"On Commercial Enterprises" 7953
810822.06.1995
28.03.1996Liberalization of mode 3.
"On Accountancy" 7661 19.01.1993 Liberalizes professional services.
"On Investments Funds" 7979 26.07.1995 Liberalizes financial services
157. The representative of Albania noted that the Law 8081 dated 7 March 1996 "On Insurance
and Reinsurance Companies", was amended by the Law “On Some Changes to Law No. 8081 dated7 March 1999 On Insurance and Reinsurance Companies”,  No. 8606 dated 27 April 2000 which
eliminated the restriction on joint ventures and eased the restriction on experience from ten years to
five years for foreign companies that intend to prov ide services in the Albanian market.  The "Law on
Investment Funds" would be amended to improve the securities regime and to provide a framework
for asset management, within one year of the da te of accession.  The "Law on Theatres", No. 8578
dated 10 February 2000 was approved by to create market access for private foreign and domestic
service providers for theatres, live bands and operas.  The "Law on Libraries", No. 8576 dated
3 February 2000 was enacted to create market access for private foreign and domestic library service
providers.WT/ACC/ALB/51
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TRANSPARENCY
Publications
158. The representative of Albania said that laws, resolutions and decisions related to international
trade only became effective after publication in the Official Gazette.
159. The representative of Albania said that, at the latest from the date of accession, all laws and
regulations related to trade would be published in the Official Gazette promptly and that no law or
regulation related to international trade would become  effective prior to such publication.  He further
stated that Albania would implement fully Article X of the GATT 1994 and the other transparency
requirements in WTO Agreements requiring notification and publication.
Notification
160. The representative of Albania said that, at the latest upon entry into force of the Protocol of
Accession, Albania would submit all initial notifications required by any Agreement constituting part
of the WTO Agreement.  Any regulations subsequently enacted by Albania which gave effect to the
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also
conform to the requirements of that Agreement.  The Working Party took note of these commitments.
TRADE AGREEMENTS
161. In response to a request from members of the Working Party, the representative stated that
Albania had concluded several bilateral Agreements on Economic Cooperation and Trade.  Theseagreements provided the general rules for development of trade and economic cooperation (i.e., trade
relations) between parties on the basis of equality and mutual benefit in accordance with their
respective laws and regulations, and in compliance with any rules on international trade to which the
partner country was a signatory (e.g., GATT or WTO), where applicable.  Because Albania did not
have relations with most countries of the world, the bilateral agreements served as a mechanism toprovide the conditions for international trade.
162. She noted that the conditions of these agreements involve the following principles.  The
bilateral partners agreed to grant to each other most favoured nation treatment with respect to all
matters concerning exports and imports of goods originating from the partner country, in accordance
with the principles of the World Trade Organizati on or GATT (depending on when the bilateral was
signed).  The parties, in accordance with the laws and regulations in force in their country, provided
all possible facility for the transshipment, temporary storage and transit trade of the commodities.  Incases where the agreements covered services.  The Parties agreed to apply the principles and practices
recognized in the world  in the financial, banking and insurance sectors and to proceed in accordance
in with the laws and regulations in force in their respective countries.
163. She further added that the parties usually created a joint commission to cover the
implementation provisions of the agreement, to propose measures to solve the observed difficulties inthe mutual economic relations, and to find other possibilities for the extension of trade and economic
cooperation.  In her opinion, these bilateral agreements in no way violate the MFN provisions of the
WTO or provide preferential arrangements of any kinds.
164. She also informed members of the Working Party that Albania had concluded several
agreements for the promotion and reciprocal protection of investments.  These agreements provide forthe promotion and reciprocal protection of investments, the encouragement of business initiatives,
creation of favorable conditions for  investments of investors of one state in the territory of the other
state.  That is, these agreements served as the fundamental base foreign investment law in Albania.
The agreements provide that when investments by investors of either contracting party suffer lossesWT/ACC/ALB/51
Page 55
owing to war, armed conflict, a state of national emergency, revolt, insurrection, riot or similar events
in the territory of the other contracting party, they can be accorded by the latter contracting party
treatment as regards restitution, compensation or other settlement, no less favorable than that which
the latter contracting party accords to its own investors or to investors of any third state.  Each
contracting party shall in its territory accord in vestments and returns of investors of the other
contracting party, as regards management, maintenance use, enjoyment or disposal of their
investments, treatment which is fair and equitable and not less favorable than that which it accords to
its own investors or to investors of any third state, whichever is more favorable.  The parties guarantee
the transfer of payments related to investments and returns. The transfers (capital and additional
amount to maintain or increase the investment; profits, interest, dividends, funds in repayment of
loans, proceeds of sale liquidation on the investments) shall be made in a freely convertible currency,
without any restriction.  The bilateral parties sh all encourage the development of joint activities
between them through the promotion and mutual protection of investments, prevention of double
taxation and other measures accepted by them.  The investment promotion agreements do not in any
way violate the TRIMs Agreement of the WTO.  They served as a means of establishing economic
relations with countries with which had not formal relations.
165. In response to further requests for informatio n the representative of Albania provided the
following list of trade agreements.
Table 11: Albania's Bilateral Agreements for Promotion and Protection of Investments
Agreement by Country Date of Implementation
Greece March 1991
Italy September 1991
Federal Republic of Germany October 1991
Turkey June 1992
Switzerland September 1992
China February 1993
Poland March 1993
Austria March 1993
Croatia May 1993
Tunisia October 1993
Malaysia January 1994
United Kingdom March 1994
Netherlands April 1994
Bulgaria April 1994
Romania May 1994
Czech Republic June 1994
Egypt December 1994
Russian Federation December 1994
United States January 1995
Sweden March 1995
France June 1995
Denmark September 1995
Hungary January 1996
Israel January 1996
Finland June 1997
Slovenia October 1997
Former Yugoslav Republic of Macedonia December 1997
Portugal September 1998
Belgium-Luxembourg February 1999
France February 1988
Greece March 1988WT/ACC/ALB/51
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Agreement by Country Date of Implementation
Federal Republic of Germany June 1988
Romania May 1989
Italy September 1989
Turkey June 1990
Slovenia May 1992
United States May 1992
Netherlands February 1993
China February 1993
Poland March 1993
Croatia May 1993
Malaysia January 1994
Austria March 1994
Bulgaria April 1994
Czech Republic June 1994
Egypt 1994
Russian Federation April 1995
Switzerland October 1995
Former Yugoslav Republic of Macedonia December 1997
The agreements for promotion and protection of inve stments are intended to create a legal basis to
promote mutual cooperation in the area of investments.  These agreements were intended to create alegal basis to promote a favourable investment climate through the passing of legislation that was
non-discriminatory and provided national treatment.  These agreements were not preferential
arrangements and contained no provisions applying advantages or granting privileges to either Party.
Table 12:  Albania's Bilateral Agreements on Economic Cooperation and Trade
Agreement by Country Date of Implementation
Former Yugoslav Republic of Macedonia Feb 1998
Slovenia Oct 1997
France Jun 1995
Netherlands Mar 1994 – Mar 1995
Egypt Dec 1994
Russian Federation Dec 1994
Czech Republic Jun 1994
Romania May 1994
Bulgaria Apr 1994
Malaysia Jan 1994
Croatia May 1993
Poland Mar 1993
Austria Mar 1993
China Feb 1993
Switzerland Sep 1992
Turkey Jun 1992
United States Nov 1991
Germany Oct 1991
Italy Sept 1991
Greece Mar 1991
These agreements were intended to create a legal basis to promote mutual economic cooperation on a
national treatment basis and without discrimination.  The agreements were not preferential
arrangements, nor were they free trade agreements.  The provisions of these agreements did not applyWT/ACC/ALB/51
Page 57
advantages or grant privileges (either in terms of market access or in national treatment) to either
Party.  The representative of Albania also made copies of the above agreements available for
consultation by Working Party members.
166. The representative of Albania stated that her Government would observe the provisions of the
WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its trade agreementsfrom the date of accession, and would ensure that the provisions of these WTO Agreements for
notification, consultation and other requirements concerning preferential trading systems, free trade
areas and customs unions of which Albania became a member would be met.  The Working Party
took note of these commitments.
Conclusions
167. The Working Party took note of the explanations and statements of Albania concerning its
foreign trade regime, as reflected in this Report.   The Working Party took note of the commitments
given by Albania in relation to certain specific matters which are reproduced in paragraphs 30, 34, 38,
46, 51, 53, 58, 61, 65, 73, 74, 75, 79, 81, 84, 86, 90, 92, 94, 104, 108, 110, 115, 118, 123, 153, 154,
160 and 166 of this Report.  The Working Party took note that these commitments had been
incorporated in paragraph 2 of the Protocol of Accession of Albania to the WTO.
168. Having carried out the examination of the foreign trade regime of Albania and in the light of
the explanations, commitments and concessions made by the representative of Albania, the Working
Party reached the conclusion that Albania be invited to accede to the Marrakesh Agreement
Establishing the WTO under the provisions of Article XII.  For this purpose, the Working Party has
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix I to this report, and
takes note of Albania's Schedule of Con cessions and Commitments on Goods (document
WT/ACC/ALB/51/Add.1) and its Schedule of Sp ecific Commitments on Services (document
WT/ACC/ALB/51/Add.2) that are annexed to the Protocol .  It is proposed that these texts be adopted
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of
Accession would be open for acceptance by Albania which would become a Member thirty days after
it accepts the said Protocol.  The Working Party agreed, therefore, that it had completed its workconcerning the negotiations for the accession of Albania to the Marrakesh Agreement Establishing the
WTO.WT/ACC/ALB/51
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APPENDIX I
ACCESSION OF ALBANIA
Draft Decision
The General Council,
Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Republic of Albania to the Marrakesh Agreement Establishing the World
Trade Organization and having prepared a Protocol for the Accession of Albania,
Decides, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Republic of Albania may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/ALB/51
Page 59
DRAFT PROTOCOL OF ACCESSION OF ALBANIA
TO THE MARRAKESH AGREEMENT ESTABLISHING THE
WORLD TRADE ORGANIZATION
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement
Establishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and the
Republic of Albania (hereinafter referred to as "Albania"),
Taking note of the Report of the Working Party on the Accession of Albania to the WTO in
document WT/ACC/ALB/51 (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Albania to the WTO,
Agree as follows:
Part I – General
1. Upon entry into force of this Protocol, Albania accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Albania accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred
to in paragraph 167 of the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in the paragraphs referred to in paragraph 167 of the
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO
Agreement that are to be implemented over a period of time starting with the entry into force of that
Agreement shall be implemented by Albania as if it had accepted that Agreement on the date of its
entry into force.
4. Albania may maintain a measure inconsistent with paragraph 1 of Article II of the GATS
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol
and meets the conditions of the Annex to the GATS on Article II Exemptions.
Part II – Schedules
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement
on Trade in Services (hereinafter referred to as "GATS") relating to Albania.  The staging ofconcessions and commitments listed in the Schedules shall be implemented as specified in the
relevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.WT/ACC/ALB/51
Page 60
Part III - Final Provisions
7. This Protocol shall be open for acceptance,  by signature or otherwise, by Albania until
31 December 2000.
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Albania.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
Done at Geneva this ... day of  .... one thousa nd nine hundred and ninety nine, in a single copy
in the English, French and Spanish languages each text being authentic, except that a Schedule
annexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/ALB/51
Page 61
ANNEX
SCHEDULE – REPUBLIC OF ALBANIA
Part I – Goods
[Circulated in documen t WT/ACC/ALB/51/Add.1]
Part II – Services
[Circulated in documen t WT/ACC/ALB/51/Add.2]WT/ACC/ALB/51
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APPENDIX II of the Report of the Working Party
Memorandum on Restrictions and Prohibitions for Importable products
Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements
Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
93.01 - 93.07 Arms and Munitions, Parts and
Accessories Thereof:  Military weapons, munitions
such as bullets of all calibers, missiles, grenades,mines, fireworks of 180 mm, etc.36.01 - 36.06.90.90 Explosives, Pyrotechnic Products,Matches, Pyrophoric Alloys: military explosives andpowders such as TNT, egzogyn, dynamite, ammonite,
etc.; all kinds of firearms
Regulation for the "Licensing of Trade and Sale ofArmaments" dated 10 September 1994 approved by thePrime Minister;Decision of the Council of Ministers: On the
Extermination and Sales of Armaments and
Munitions", No. 365, dated 6 June 1994Decision of the Council of Ministers: "For Workingwith Explosive Materials", No. 257, dated16 April 1996To protect the national security of the
Republic.The Ministry of Defence (MOD) has defined the procedures for
obtaining export licenses for these products and is authorized to
issue such licenses.There are two types of licenses, one for armaments and one forexplosive materials.  For armaments, the licence is available forjuridical, public, private, Albanian, and foreigners.  The licence isauthorized by the Order by the MOD, No. 402 dated 1998.  The
licence is transferable and can be automatically renewed in part
or whole by the Minister.The licensed enterprises or person(s) must have an ExportAuthorization by the MOD.  The authorization is granted whenthe following documents are supplied: legal registration of the
enterprise or person, the right to excise the activity, and the
certificate of the end-user.For explosives, licenses are issued under Order No. 402 by acommission in the MOD.  A licence defines the purposes of theactivity, the date of issue, validity, the terms of renovation of thelicence and the registration number.  The licence is issued to
professionals and is non-transferable.  The licence is for two
years and is renewable.
28.44  Nuclear materials, radioactive materials, sourcesfor the radioactive radiation (including radioactivewaste), technologies, equipment and plants, specialnon-nuclear materialsTo protect the national security of the
Republic, as well as to adhere tointernational commitments related tonon-proliferation, mass destructionand production of technologies
thereof.The Ministry of Defence has defined the procedures for obtaining
import licensing for these products.WT/ACC/ALB/51
Page 63Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
Non-dangerous waste: Waste from social and
economic activities and physically consumed productsthat are not included in the definition of dangerouswaste (see prohibited section for the definition ofdangerous waste); these products include waste from
steel, foundry, copper, brass, bronze, glass, paper and
card board, wool and cotton fibres, fabrics of wool andcotton ; contemporary productive technology(equipment, methods, or new technologies that areused to prevent or minimize the damage to the
environment); and urban waste from houses and social
activities.Decision of the Council of Ministers: "On Dangerousand Non-dangerous Waste", No. 26 dated31 January 1994To protect the life and health of the
population, and to protect theenvironmentThe Ministry of Health and the Committee of Environmental
Protection has defined the procedures for obtaining importlicensing for non-dangerous waste.To request a  licence one must be a physical and juridicalperson(s), must provide a declaration that contains a list of the
waste to be imported, its quality and composition, its destination
within Albania, and an explanation of the purposes of its use (i.e.,if to be used in productive economic activity or as waste withoutadditional value-added activities).  The importer must respect allstandards of environmental protection.
The importer must have a declaration on waste provided by the
authorized institutions of the country of origin, certificates thatdemonstrate that such waste are not dangerous, and that theexporter have permission from the customs authorities of thecountry of origin.  Finally, all transportation documents mustaccompany the abovementioned documents.
The Ministry of Health or Committee on Environmental
Protection must issue or refuse a licence within 30 working daysafter the submission of the application.  Licenses are valid for oneyear and are non-automatic.
Narcotic Drugs and Psychotropic Substances refer tothe list in accordance with the Conventions of 1961and 1971.  See Annex 2 of this table, titled “ List of
Narcotic Drugs and Psychotropic Substances which
require import Licensing and Special ImportAuthorization to be imported in Albania”.Law: "On Narcotic Drugs and PsychotropicSubstances, No. 7975 dated 26 July 1995.This law was drafted in accordance with the
Convention on “Narcotic Drugs” 1961 and Convention
on “Psychotropic Substances” 1971, and theAdjournments of 1993.To protect the life and health of the
population and to adhere tointernational conventions to which
Albania is a signatory.Narcotic drugs and psychotropic substances for medicinal
purposes are permitted to be imported into the Republic ofAlbania after they have been registered.  Both local and foreign
products are subject to registration.  what follows are the
conditions of importing narcotic drugs and psychotropicsubstances.Prior to applying for a  licence to import a narcotic orpsychotropic substance, a person or enterprise must be registeredin the Court of first degree to become a natural or juridical
subject, and then to be registered with the proper Tax Office.  The
tax registration process registers the individual/firm as having theright to engage in specific trading activity (i.e., import, export,transport, or other marketing activities) or medical/scientificresearch activities requiring narcotic drugs or psychotropicsubstances.WT/ACC/ALB/51
Page 64
Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
Having been registered with the Court and Tax Office, natural or
juridical subjects can apply for a licence to import pharmaceuticalproducts into Albania. To apply for a licence, natural or juridicalsubjects must have graduated with a degree in pharmacy from theFaculty of Natural Sciences or have employed a person who is
qualified as such.  At this point the importer is prepared to present
an application for a licence at the Directory of Pharmaceutics inthe Ministry of Health.  To request for a licence, the importer,either a producer or a party authorized by him, must provide thename and address of the technical director (i.e., the licensed
pharmacist registered in Albania), define the scope of the
activities, the countries with which trade will occur, and provide alist of the name and quantities of the substances. The licence isnon-automatic, non-transferable and valid for one year. Uponexpiry of this term, the importing entity should apply for a newimport licence.
Upon issuing of the import licensing, the importer of narcotic orpsychotropic medicines may import such medicines only after
being issued an authorization from the Ministry of Health,
Directory of Pharmaceutics, which is issued within five workingdays.  The importer should present a request that includes thename and address of the exporter, the name of the recipient of thecargo (importer in Albanian), the joint international name, the
name of the medicine in the tables included the international
conventions, the quantity of each medicine, the time period whenthe import is due, the mode of transport and the point ofdestination within the Republic of Albania.WT/ACC/ALB/51
Page 65Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
The authorization is based on the sample compiled by the
Narcotic Medicines Commission of the Economic and SocialCouncil of United Nations. The authorization is passed by theAlbanian importer to the foreign producers (the respectiveexporter) who presents it to the Control Bodies of his country and
the latter presents this authorization to the International Board of
Narcotic Control (INCB) to carry out the necessary verifications.After approval from the latter, the exporting country issues to theproducer the export authorization. This document should betogether with the cargo and upon arrival at the destination, a copy
of it is sent to the Albanian control authorities, which confirm the
arrival of the cargo to the government of the exporting country.Upon the arrival of cargo in Albania, the respective importauthorization is issued in same mode as proceeded for othermedicines (refer to the following paragraph).
30.00 Pharmaceutical productsLaw on “Medicaments”, No. 7815 dated 20 April 1994To protect the life and health of the
population.Medicines are permitted to enter into the Republic of Albania
after they have been registered.  Both local and foreign productsare subject to registration.  The process for importing a registered
pharmaceutical product is first described and then the process for
registering a pharmaceutical product is described.Prior to applying for a licence to import pharmaceutical products,a person or enterprise must be registered in the Court of firstdegree to become a natural or juridical subject, and then to be
registered with the proper Tax Office.  The tax registration
process registers the individual/firm as having the right to engagein specific trading activity (i.e., import, export, transport or othermarketing activities for pharmaceutical products).WT/ACC/ALB/51
Page 66
Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
Having been registered with the Court and Tax Office, natural or
juridical subjects can apply for a licence to importpharmaceuticals products into Al bania. To apply for a licence,
natural or juridical subjects must have graduated with a degree inpharmacy from the Faculty of Natural Sciences or have employed
a person who is qualified as such.  At this point the importer is
prepared to present an applicatio n for a licence at the Directory of
Pharmaceutics in the Ministry of Health.  The request for alicence to import must include the list of medicines to beimported, the international collective name (INN) and the
commercial name, the quantity to be imported for each separate
medicine, and the Albanian CIF price.  Upon completion of thisprocedure, the import marketing authorization issued (which onlyserves as a document to check the quality and quantity of themedicine) by the Ministry of Health and is presented to thecustoms authority.  If the imported product is what is specified in
the import licence, then the import marketing authorization is
automatic and shall be issued in five working days.  There are nosubstantive criteria to deny authorization to import; only when theabovementioned conditions are not met will authorization bedeniedWT/ACC/ALB/51
Page 67Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
Process for registering a pharmaceutical product:  The substantive
requirements for the registration of medicaments are as defined in
the regulation "On the Registration of Drugs in the Republic ofAlbania".  To process to register a medicament, the requirementswhich apply to natural and juridical subjects whether the product
is produced in Albania or abroad, includes the presentation of the
Free Sale Certificate in the country of origin; a confirmation thatthe drug is manufactured according to the Good ManufacturingPractices; the presentation of chemical, pharmaceutical andbiological documentation, stability test, toxicological and
pharmacological and clinical documentation; and a quality
control is performed by the National Center of Drugs Control.Every pharmaceutical manufacturer must present samples of thedrugs that its wants to register.  If any one of the documentationis not presented or if the drug fails the quality control, then theregistration will be refused.  The regulation does not provide for
an appeal process.
12.00  Seeds and seedlingsLaw: "On Seeds and Saplings", No. 7659 dated
12 January 1993.Decision of Council of Ministers: "The Setting up ofthe State Entity of Seeds and Saplings (SESS)",No. 447 dated  3 September 1993
Decision of Council of Ministers  “On Approving the
Regulations for the Production, Reproduction,Treatment, Assessment, Trade, Control of Seeds andSaplings and for Protection and Treatment of GeneticMaterial of Plants”, No. 552 dated 14 November 1994To ensure the quality of seeds and
saplings.  To protect the environment,
and the protection and safety/health ofhumans, animals and plants.  Toadhere to requirements of internationalorganizations to which Albania is a
signatory.Licenses are issued by the State Entity of Seeds and Seedlings
based on the regulation of the Law on Seeds and Saplings”
No. 7659 dated 12 January 1993.  Licenses are issued to juridicalpersons, domestic or foreign, who possess the necessary technicalqualification (university diploma in agronomy) or have employedin their companies such a qualified person.  Licenses are annual
and are automatically renewable each year. Prior to applying for a
licence to import seeds and seedlings, a person or enterprise mustbe registered in the Court of first degree to become a natural orjuridical subject, and then to be registered with the proper TaxOffice.  The tax registration process also registers theindividual/firm as having the right to engage in specific trading
activity (i.e., import, export, transport or other marketing
activities for seeds and seedlings).  The same requirements applyto domestic production of covered products/similar articles.WT/ACC/ALB/51
Page 68
Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
Having been registered with the Court and Tax Office, natural
or juridical subjects can apply for a licence to import seeds andseedlings into Albania. To apply for a licence, natural or juridicalsubjects must have graduated from the Faculty of Agronomy orhave employed a person who is qualified as such.  At this point
the importer is prepared to pres ent an application for a licence at
the State Entity for Seeds and Seedlings in the Ministry ofAgriculture and Food.  To obtain the licence, an importer mustsupply the required technical information of the seeds: technicaldata of the seeds contingent, the name of the seed, the origin, and
the quantity and the quality of the seed.
Only seeds registered in the official catalogue of the State Entityof Seeds and Seedlings and that satisfy Albanian standards are
permitted to be imported to Albania.  The Albanian standards, inaddition to the international standards such as the DHS test(distinguishing, homogeneity and stability) test include also a testof the agronomic and technological value (Value for Cultivationand Use).  The procedures of registration are identical for
Albanian and foreign subjects.
There are occasions when seeds are imported under emergency
measures only by a proposal from the State Entity for Seeds andSeedlings (with the approval of the Ministry of Agriculture andFood).  Seeds and seedlings which are not registered in theAlbanian Catalogue may be registered, on the condition that theyare compatible with the climatic and soil conditions of Albania.
Registration is applied on a non-discrimination basis.WT/ACC/ALB/51
Page 69Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
31.00 Pesticides
Decision of the Council of Ministers: "On Pesticides",No. 584 dated 6 December 1993To protect the environment, and the
protection and safety/health ofhumans, animals and plants.  To
adhere to the requirements of
international organizations to whichAlbania is a signatory.Prior to applying for a licence to import pesticides, a person or
enterprise must be registered in the Court of first degree tobecome either a natural or juridical subject, and then to beregistered with the proper Tax Office.  The tax registration formalso registers the individual/firm as having the right to engage in
specific trading activity (i.e., import, export, transport or other
marketing activities for pesticides).  Once registered to engage inimporting activity, the importer must go to the Ministry ofAgriculture and Food, Directory of Plant Protection Services(DPSS) to declare the pesticides to be imported.  If the pesticide
is registered with the Albanian State Commission for the
Registration of Pesticides (ASCRP), then an import licence isissued by the DPSS in accordance with the Agreement on ImportLicensing Procedures of GATT 1994.
The licence, issued within two months, specify the time limit asrequired by the importer up to one year maximum and are issuedto an individual who has graduated from the Faculty ofAgronomy or a firm which employs such a person.  If a pesticide
is not registered in Albania, then the pesticide may
not be imported.
The requirements for registering a pesticide with the ASCRP arethe same for local and foreign products and are based on the samecriteria as the EU's Directive No. 91/414 EEC dated 15 July 1991,Annex 2.  The requirements of this Directive were sanctioned bythe Albanian government in the Decision of the Council of
Ministers No. 584 dated 6 December 1993.  Registration
requirements comply with the IPPC (International PlantProtection Convention).  Every year the requests for registrationof new pesticides are attached to the Ministry of Agriculture andFood's special publication on the registered pesticides (Article 62
of the Decision of the Council of Ministers No. 584 dated
6 December 1993).WT/ACC/ALB/51
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Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
The licensing process and application for concessions is identical
for natural and juridical subjects.  The information on theprocedures of licensing, application for the concession as well asthe registration of pesticides are available at the offices of thecentral and local administration of the Ministry of Agriculture
and Food.
01.00 - 02.00 Live animals and products
Law on “ Albanian Veterinary Service”,No. 7674 dated 23 February 1993Law on "Food", No. 7941 dated 31 May 1995.To  protect the integrity of breeding
stocks, the protection of theenvironment and safety/health ofhumans, animals and plants.  To
adhere to the requirements of the
international organizations to whichAlbania is a signatory.Prior to applying for a licence to import livestock, a person or
enterprise must be registered in the Court of first degree tobecome a natural or juridical subject, and then to be registeredwith the proper Tax Office.  The tax registration process alsoregisters the individual/firm as having the right to engage inspecific trading activity (i.e., import, export, transport or other
marketing activities related to livestock or livestock products).
Once the individual/firm is so registered, then the next step is to
go to the Ministry of Agriculture and Food, Directory of theAlbanian Veterinary Service, to receive a licence (i.e., to receive"permission" as is stated the Law No. 7074 dated23 February 1993).  The licence must be issued to all juridicaland natural subjects, local and foreign, who are registered to
import livestock or livestock products and who present the
Certificate of the Origin and the Certificate of Sanitation.
Licenses are valid for up to 2 months time and specify thequantity to be imported (only as a means for data collecting andstatistical information).  Each time livestock or livestock productsare to be imported, the importer must go the Ministry of
Agriculture and Food to receive a new licence.  Live animals
imported are subject to quarantine conditions which are inconformity with the International Organization of Epizotive(IOE).WT/ACC/ALB/51
Page 71Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
For importing livestock for breeding purposes which are not
already registered as a breed in Albania, in addition to the abovecriteria, the importer must have another document from theCentral Commission of the Improvement of Breeds (CCIB),Ministry of Agriculture and Food, which will allow the animals to
enter Albania.  The CCIB takes into consideration the regional
policy of breeds in Albania as well as the program of geneticimprovement of such breeds.  The CCIB allows or does not allowa certain breed based on the breed's characteristics and theirability to adapt to local conditions.  In cases where the CCIB
refuses the request to import, the importer has the right to appeal
the decision in the court of first degree.  In the case of a registeredand known breed in Albania, a document from the CCIB is notnecessary.
03.00 Fish and seafood productsLaw on “ Albanian Veterinary Service”,No. 7674 dated 23 February 1993Law on “ Fisheries and Aquaculture”,
No. 7908 dated 5 April 1995
Law on "Food", No. 7941 dated 31 May 1995To protect the integrity of stocks, the
protection of the environment andsafety/health of humans, animals andplants.  To adhere to the requirements
of the international organizations to
which Albania is a signatory.Prior to applying for a licence to import fish and seafood
products, a person or enterprise must be registered in the Court offirst degree to become a natural or juridical subject, and then tobe registered with the proper Tax Office.  The tax registration
form also registers the individual/firm as having the right to
engage in specific trading activity (i.e., import, export, transportor other marketing activities for fish and seafood products).Once the individual/firm is so registered, then the next step is togo to the Ministry of Agriculture and Food, Directory of the
Albanian Veterinary Service, to receive a licence (i.e., to receive
"permission" as is stated the Law No. 7074 dated23 February 1993).  The licence must be issued to all juridicaland natural subjects, local and foreign, who are registered toimport fish or seafood products and who present the Certificate ofthe Origin and the Certificate of Sanitation.  Licenses are valid
for up to 2 months time and specify the quantity to be imported
(only as a means for data collecting and statistical information).Each time fish or seafood products are to be imported, theimporter must go the Ministry of Agriculture and Food to receivea new licence.WT/ACC/ALB/51
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Article And Description By Harmonized Code Or As
Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
04.07 Eggs
Law on “ Albanian Veterinary Service”,No. 7674 dated 23 February 1993Law on "Food", No. 7941 dated 31 May 1995To protect safety/health of humans. Prior to applying for a licence to import eggs, a person or
enterprise must be registered in the Court of first degree tobecome a natural or juridical subject, and then to be registeredwith the proper Tax Office.  The tax registration process alsoregisters the individual/firm as having the right to engage in
specific trading activity (i.e., import, export, transport or other
marketing activities for eggs).
Once the individual/firm is so registered, then the next step is togo to the Ministry of Agriculture and Food, Directory of theAlbanian Veterinary Service, to receive a licence (i.e., to receive"permission" as is stated the Law No. 7074 dated23 February 1993).  The licence must be issued to all juridical and
natural subjects, local and foreign, who are registered to import
eggs and who present the Certificate of the Origin and theCertificate of Sanitation.  Licenses are valid for up to 2 monthstime and specify the quantity to be imported (only as a means fordata collecting and statistical information).  Each time eggs are tobe imported, the importer must go the Ministry of Agriculture and
Food to receive a new licence.
51.00 Wool
 Law on “ Albanian Veterinary Service”,No. 7674 dated 23 February 1993To control against contagious diseases
thereby protecting safety/health ofanimals.Prior to applying for a licence to import wool, a person or
enterprise must be registered in the Court of first degree tobecome a natural or juridical subject, and then to be registeredwith the proper Tax Office.  The tax registration process alsoregisters the individual/firm as having the right to engage in
specific trading activity (i.e., import, export, transport or other
marketing activities for wool).WT/ACC/ALB/51
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Described By Law Or International ConventionJustification/Rationale Of The
RestrictionProcess To Obtain Licence, Type Of Licence, And Duration
Once the individual/firm is so registered, then the next step is to
go to the Ministry of Agriculture and Food, Directory of theAlbanian Veterinary Service, to receive a licence (i.e., to receive"permission" as is stated the Law No. 7074 dated23 February 1993).  The licence must be issued to all juridical and
natural subjects, local and foreign, who are registered to import
wool and who present the Certificate of the Origin and theCertificate of Sanitation.  Licenses are valid for up to 2 monthstime and specify the quantity to be imported (only as a means fordata collecting and statistical information).  Each time wool is to
be imported, the importer must go the Ministry of Agriculture and
Food to receive a new licence.
41.00 Unprocessed leatherLaw on “ Albanian Veterinary Service”,No. 7674 dated 23 February 1993To protect against contagious diseases
thereby protecting safety/health ofanimals.Prior to applying for a licence to import leather, a person or
enterprise must be registered in the Court of first degree tobecome a natural or juridical subject, and then to be registeredwith the proper Tax Office.  The tax registration process alsoregisters the individual/firm as having the right to engage inspecific trading activity (i.e., import, export, transport or other
marketing activities for leather).
Once the individual/firm is so registered, then the next step is togo to the Ministry of Agriculture and Food, Directory of theAlbanian Veterinary Service, to receive a licence (i.e., to receive"permission" as is stated the Law No. 7074 dated
23 February 1993).  The licence must be issued to all juridical and
natural subjects, local and foreign, who are registered to importleather and who present the Certificate of the Origin and theCertificate of Sanitation.  Licenses are valid for up to 2 monthstime and specify the quantity to be imported (only as a means fordata collecting and statistical information).  Each time leather is to
be imported, the importer must go the Ministry of Agriculture and
Food to receive a new licence.WT/ACC/ALB/51
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Prohibitions on Importable Products, by Type: Justification, and Phase-out Period
Article and Description by Harmonized Code or as
Described by Law or International ConventionJustification/Rationale of the
ProhibitionPhase-out Period
Dangerous waste: Dangerous waste are defined as:
toxic corrosive, residual waste from explosives,
carcinogens and radioactive, catalysts that endanger
human, plant and animal and the environment, (seecomplete list in WT/ACC/ALB/25, pages 6-7)Decision of the Council of Ministers: "On Dangerousand Non-dangerous Waste", No. 26 dated
31 January 1994To protect human, plant, and animal
health and the environment.To make changes to this list of products (or a change in the
definition of dangerous waste) the Council of Ministers must
make an approval.  The reported changes can be made available
by the Ministry of Health and the Committee of EnvironmentalProtection.In the case where an importer is found to be receiving dangerouswaste (i.e., prohibited waste) rather than non-dangerous waste,
then the importer is required to obtain an export licence provided
by the Committee for Environmental Protection so that theseprohibited wastes can be returned to the country of origin.
Military poisoning substances, chemical weapons,other strong poisons, and the devices for the protectionfrom such substances and chemicals
International Convention on the Prohibition of the
Development, Production, Storage, and Usage ofChemical Weapons and Their Extermination (List No.2 and 3) which has been ratified by the Albanian
Government.To protect the national security of the
Republic.There is no specific law on the trade of Chemical Weapons.  The
government is in the process of developing legislation to definethe trade regime of such products.  The Ministry of Defence will
be the responsible authority for such matters.
Narcotic Drugs and Psychotropic Substances, refer to
the list provided in WT/ACC/ALB/25, pages 6-7, andthe Convention on “Narcotic Drugs”  1961,Convention on “Psychotropic Substances” 1971, andthe Adjournments of 1993. Annex 1 of this table titled“ List of Narcotic Drugs and Psychotropic Substances
Prohibited to enter, to be produced or used in Albania”
.Law: "On Narcotic Drugs and PsychotropicSubstances, No. 7975 dated 26 July 1995.  This lawwas drafted in accordance with the Conventions of1961and 1971,and the Adjournments of 1993.To control the importing of narcotics in
the territory of Republic of Albania.To protect the life and health of thepopulation and to adhere tointernational conventions to whichAlbania is a signatory.WT/ACC/ALB/51
Page 75Article and Description by Harmonized Code or as
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ProhibitionPhase-out Period
Animal products of the infected and penalized
countries by OIE (Organization InternationalEpizotive); pesticides which are not registered in theAlbanian catalogue on pesticides; seeds and seedlingswhich are not certified and registered in the Albanian
catalogue .Law: "On Seeds and Saplings", No. 7659
dated 12 January 1993.Decision of Council of Ministers Nr.447 dated3 September 1993 on “The setting up of State Entity ofSeeds and Saplings”.
Decision of Council of Ministers: "On approving of the
Regulatory” on “ Production, Reproduction, Treatment,Assessment, Trade, Control of Seeds and Saplings and
for Protection and Treatment of Genetic Material ofPlants" , No. 552 dated 14 November 1994To control the importing of seeds and
saplings.  To protect the environment,and the protection of safety/health ofhumans, animals and plants.  To adhereto requirements of international
organizations to which Albania is a
signatory.
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