RESTRICTED
WORLD TRADE WT/ACC/OMN/6
26March 1997
ORGANIZATION(97-1244)
Original: English
ACCESSION OFTHE SULTANATE OFOMAN
Additional Questions andReplies totheMemorandum
ontheForeign Trade Régime
TheMinistry ofCommerce andIndustry oftheSultanate ofOman hassubmitted thefollowing
additional questions andreplies concerning theMemorandum ontheForeign Trade Régime ofOman
(WT/ACC/OMN/2), withtherequest thattheybecirculated toWorking Party members.
_______________WT/ACC/OMN/6
Pageii
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions 1 1-4
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property régime 1 5-7
2. Substantive Standards ofProtection 2 8-10
3. Measures toControl Abuse ofIntellectual Property Rights 3 11-18
4. Enforcement 5 19-21
VI. TRADE-RELATED SERVICES REGIME
1. General 5 22-23
Legal services 6 24
Banking 6 25
2. Policies Affecting Trade inServices
(a) Government departments, agencies orother bodies withauthority 6 26-31
(c) Qualification requirements andprocedures 8 32-36
(d) Monopolies andexclusive service suppliers 9 37-41
(h) Government procurement 10 42
3. Market Access andNational Treatment
(c) Limitations onthetotalnumber ofoperations ortotalquantity of
output11 43-48
(d) Limitations onthetotalnumber ofnatural persons employed in
particular sectors12 49-58
(e) Restriction on,orrequirement of,specific types oflegalentities 15 59-61
(f) Limitations ontheparticipation offoreign capital 16 62-66
(g) Measures providing forlessthannational treatment 17 67
4. Exceptions toMost-Favoured-Nation Treatment 17 68-69
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade in
Goods andTrade inServices18 70-71
2. Economic Integration, Customs Union andFreeTrade Area
Agreements18 72-79
Annex 1-Foreign Trade Statistics 20 80-81WT/ACC/OMN/6
Page1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions
Paragraph 21(viii) (WT/ACC/OMN/2)
Question 1.
TheMemorandum states thatthere aresome constraints inthetransport sector.
Could these constraints bespecified?
Reply
These were constraints inthe1970s.
Question 2.
Arethere anyplans toremove them?
Reply
These havesince beenremoved.
Question 3.
Could Oman provide specific information ontheir current situation vis-à-vis market access to
thedifferent modes oftransport auxiliary services?
Reply
Thisinformation willbesubmitted later.
Question 4.
TheGovernment determines theunified tariff tobepaidbyallconsumers intheSultanate.
Does thesame tariff apply alsotoprojects operated bytheforeign suppliers?
Reply
Yes.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property régime
Question 5.
Please identify anddescribe anylawsthatwould fallintotheanti-competitive practices provisions
ofArticle 40ofTRIPS.WT/ACC/OMN/6
Page2
Reply
Please seeparagraph 159oftheMemorandum ofOman (WT/ACC/OMN/2).
Question 6.
Arethere anyrestrictions onthelicensing ofintellectual property, oneither domestic orforeign
nationals?
Reply
There arenorestrictions onlicensing. There areonlyprocedural requirements. Please see
replies toquestions 280and299oftheQuestions andReplies totheMemorandum ontheForeign Trade
Régime (WT/ACC/OMN/5).
Question 7.
Please identify allmaterials subject tothisprovision.
Reply
Thisprovision oftheCopyright Lawapplies toallcompilations mentioned inparagraph 150
oftheMemorandum ofOman (WT/ACC/OMN/2).
2. Substantive Standards ofProtection
Question 8.
Thisprovision appears toapply onlytomaterials whose rights areheldbyheirs orsuccessors
oftheauthor. May theGovernment alsodecide topublish orreproduce acompilation whose
rights arestillretained bytheauthor?
Reply
Theprovision onlyapplies tomaterials whose rights areheldbyheirs orsuccessors ofthe
author. Itdoesnotapply tomaterials whose rights arestillheldbytheauthor.
Question 9.
Please provide anexample ofwhen itwould beinthepublic interest fortheGovernment todecide
topublish orreproduce acompilation.
Reply
Forexample, abook oncertain aspects ofthehistory orculture oftheSultanate ofOman.
Question 10.
Please describe theprocedures thattheGovernment mustfollow before itcanpublish orreproduce
acompilation.WT/ACC/OMN/6
Page3
Reply
Ifacompilation hasnotbeenpublished bytheheirsorsuccessors oftheauthor andtheMinister
ofCommerce andIndustry considers thatitspublication orreproduction isinthepublic interest, he
willmake anofficial request totheheirs orsuccessors oftheauthor topublish it.Iftheheirs or
successors oftheauthor donotpublish itwithin sixmonths oftheofficial request, thenaftersixmonths
oftherequest, theMinister maypassadecision topublish thecompilation andtofairly compensate
theauthor ’sheirs orsuccessors.
3. Measures toControl Abuse ofIntellectual Property Rights
Question 11.
Please describe theciviljudicial procedures forenforcement ofallforms ofintellectual property
rights.
Reply
Civil judicial procedures arenotelaborated indetail intheintellectual property lawsofOman.
Thenormal legalprocedures apply.
Question 12.
What civilremedies areavailable toanintellectual property holder forinfringement ofhisrights,
forallforms ofintellectual property.
Reply
Therightholder canapproach theAuthority forSettlement ofCommercial Disputes requesting
remedies thathemaywant.
Question 13.
Please describe theprovisional measures available inOman andidentify anyprovisions inOman 's
intellectual property régime thatarenotinconformity withtherequirements ofTRIPS Article 50.
Reply
There areatpresent noprovisions onprovisional measures.
Question 14.
Please describe theadministrative procedures andremedies available under theOmani intellectual
property régime.
Reply
TheMinistry ofCommerce andIndustry makes occasional checks, uponcomplaint, andseizes
counterfeit orpirated goods.WT/ACC/OMN/6
Page4
Question 15.
What procedures areavailable toright holders forthesuspension, bycustoms authorities ofthe
release intocommerce ofcounterfeit trademark orpirated copyrighted goods. Please identify
anyprovisions inOmani lawthatarenotinconformity withtherequirements ofTRIPS Section 4,
relating tospecial border measures.
Reply
Articles 32-34 oftheTrade Marks LawofOman contain provisions andprocedures onborder
measures. Arightholder canapply totheChairman oftheAuthority forSettlement ofCommercial
Disputes toorder suspension ofcustoms clearance ofallegedly counterfeit goods. TheChairman may
soorder, pending theinitiation ofaregular case.
These provisions byandlarge correspond toArticles 51-60 oftheTRIPS Agreement.
Theduration ofsuspension ofcustoms clearance under Omani lawis8daysandnot10as
inArticle 55oftheTRIPS Agreement. Alsothere isnoprovision corresponding toArticle 58ofthe
TRIPS Agreement.
Question 16.
Thesizeofthefinesfortrademark violations (R.O. 500)andforcopyright violations (R.O. 2000)
seem insufficient toserve aseffective deterrents. HasOman considered increasing thesizeof
these fines?
Reply
Thesizeoffinesmaybeconsidered adequate asitiscoupled withimprisonment fortwo/three
years. Copyright Lawprovides fordoubling ofpenalties incases ofrecurrent violations.
Question 17.
Please describe thecriminal procedures applicable toviolations ofintellectual property laws.
Reply
There areprovisions forimprisonment andfines. There arenospecial criminal procedures
forintellectual property cases. Thecriminal procedures under thenormal lawapply.
Question 18.
Please provide asummary ofpatent applications filedandgranted fortheyears 1989 -1995, in
aform similar tothat provided fortrademarks inparagraph 163oftheMemorandum
(WT/ACC/OMN/2).
Reply
There isnopatent office yet.Acombined GCC Patent Office isbeing established inRiyadh.WT/ACC/OMN/6
Page5
4. Enforcement
Question 19.
Could theGovernment ofOman bemore explicit about thecivilandadministrative procedures
andremedies (e.g.injunctions, evidence etc.)thatexistinitslegislation?
Reply
There arenodetailed provisions about civilandadministrative procedures andremedies in
theintellectual property laws. However, thegeneral lawprovisions apply.
Question 20.
Arethere anyprovisions thatdealwith"provisional measures"? Please explain.
Reply
No.
Question 21.
Does thelegislation ofOman contain anyprovisions onborder measures? Please explain.
Reply
Please seereply toquestion 15above.
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 22.
Please describe thepolicy measures affecting trade inservices byproviding aresponse to
WT/ACC/5, including tables andannex, prior tothefirstmeeting oftheWorking party.
Reply
Completed WT/ACC/5 willbesenttotheWTO.
Paragraph 164(WT/ACC/OMN/2)
Question 23.
Could Oman provide forabreakdown ofservices thatitisimporting?
Reply
Thebreakdown willbeprovided later.WT/ACC/OMN/6
Page6
Legal services
Question 24.
There isnomention about legal services intheMemorandum (WT/ACC/OMN/2).
Isthere asystem inOman which allows aforeign lawyer, whose qualification asalawyer isgiven
byaforeign country other thanOman, toconduct legal services inOman? Ifyes,please explain
thefollowing.
- What istherequirement foraforeign lawyer toconduct alegal service?
- What isthecoverage ofalegal service permitted toaforeign lawyer?
- What aretherestrictions ontheactivities ofaforeign lawyer?
Reply
ThelawintheSultanate ofOman doesallow aforeign lawyer toprovide legalservices inOman,
provided heestablishes ajoint-venture company withanOmani lawyer, orjoins anexisting Omani
lawfirm. Thejoint-venture company should obtain alicence from theMinister ofJustice before
commencing legal consultancy business. Theforeign lawyer ’sshare inthecompany islimited to
65percent.
Aforeign lawyer canprovide alltypes oflegalservices, except thathecannot appear inacourt
toplead acase.
Theonlyrestriction isthathecannot appear inacourt.
Banking
Question 25.
Please describe therestrictions thatapply toopening branches offoreign banks inOman. What
istherationale forthese restrictions?
Reply
Please seedetailed reply toquestion 44below. Asdescribed therein, thereisnodiscrimination
against foreign banks andtheprocedure istransparent.
Therationale forthepolicy onopening newbranches (linkage policy) istoinduce banks, local
andforeign, toopenbranches inunbanked towns.
2. Policies Affecting Trade inServices
(a) Government departments, agencies orother bodies withauthority
Paragraph 167(WT/ACC/OMN/2)
Question 26.
Foreign ownership isregulated intheForeign Capital Investment Law. Asmentioned, foreign
ownership atacertain levelneeds tobeapproved bythelocal authorities.WT/ACC/OMN/6
Page7
Arethere more specific setsofcriteria applied forsuchapproval?
Reply
There arenospecific criteria.
Question 27.
Does thisapply toalllegal entities andallspecific sectors oftrade inservices?
Reply
Inbusiness services, foreign equity upto65percentisallowed without anyspecial approval.
Inother sectors, approval isneeded forashare exceeding 49percent.
Question 28.
Areallforeign investors given similar treatment?
Reply
Yes.
Question 29.
What rules andregulations apply toimports offinancial, telecommunications, health, education
andprofessional services? (WT/ACC/OMN/2, paragraphs 167-170, pages 22-23).
Reply
Thelawsandregulations applicable toservices arelisted inparagraph 5(a)ofAnnex 2tothe
Memorandum oftheSultanate ofOman (document WT/ACC/OMN/2).
Question 30.
Arethere anyservice sectors subject torestrictions onmodes ofsupply (cross-border supply,
commercialpresence,etc.)imposedbytheMinistryofCommerceandIndustry?(WT/ACC/OMN/2,
paragraph 167,page 22)?
Reply
Therearenorestrictionsoncross-bordersupplyandconsumptionabroadinrespectofallbusiness
services forwhich theMinistry hasresponsibility. However, there arelimitations oncommercial
presence andonmovement ofnatural persons inrespect ofallbusiness services.
Thelimitation oncommercial presence istotheeffect thatforeign service providers mustenter
intoajointventure withanOmani partner andtheshare ofaforeign service provider islimited to
65percent.Thelimitationonmovementofnaturalpersonslimitsforeignpersonstoacertainpercentage
ofthetotalwork force ofeachcompany. Thepercentage isdifferent fordifferent sectors ofservices
(explained laterinreply toquestions onmovement oflabour).WT/ACC/OMN/6
Page8
Question 31.
Could Oman provide more detail -withparticular regard totransparency andconsistency, market
access, m.f.n. andnational treatment -onitsbusiness licensing/registration arrangements asthey
affect foreign providers inallrelevant service sectors, including financial services?
(WT/ACC/OMN/2, paragraph 168,page 23).
Reply
Therequirement foraservice-providing company togetabusiness licence/registration isto
apply totheMinistry ofCommerce andIndustry intheappropriate formalong withtheMemorandum
andArticles ofAssociation ofthecompany andtheidentification documents ofthepartners orDirectors
oftheCompany. Joint-Stock Companies andcompanies subject totheForeign Capital Investment
Lawshould havecompleted thenecessary procedures under theCompanies Commercial Lawandthe
Foreign Capital Investment Lawrespectively before theyapply forandgetabusiness licence/registration
bywayofgetting registration intheCommercial Register. Once acompany issoregistered itcan
engage inservice activities covered initsMemorandum andArticles ofAssociation.
Financial service companies havetoapply totheCentral Bank ofOman forregistration with
asimilar procedure.
Individual service providers, assoleproprietors, havealsotogetaregistration. Forthem
thecondition isthattheymustbeOmani nationals, notlessthan18years ofage,withtheirplace of
business inOman, should nothavebeenconvicted ofanoffence andshould nothavebeendeclared
asbankrupt.
Transparency andconsistency isprovided bywayofpublication oftherulesrelating tobusiness
licence/registration.
Market access isavailable toforeign service companies which havecompleted therequirements
oftheForeign Capital Investment Law.
Most-favoured-nation treatment isensured bytreating service providers from allcountries,
except GCC countries, onthesame basis. GCC companies aretreated atparwithOmani companies.
There isalimitation onnational treatment asforeign companies havetofulfiltherequirements
oftheForeignCapitalInvestmentLawwhereasOmaniCompaniesdonot.Secondly,foreignindividuals
cannot getalicence/registration, whereas Omani individuals can.
(c) Qualification requirements andprocedures
Paragraph 173(WT/ACC/OMN/2)
Question 32.
TheOman Labour Law, article 19states thattechnical qualifications ofworkers arerequested.
Could theSultanate ofOman authorities provide uswithacopy ofthelaw?
Reply
Acopyofthelawisavailable, inEnglish, intheSecretariat (Accessions Division, Room 1126)
forconsultation.WT/ACC/OMN/6
Page9
Question 33.
Itisstated thatqualifications offoreign service suppliers arerecognised: howdoesOman goabout
recognition?
Reply
While issuing work permits, theMinistry ofSocial Affairs andLabour doesnotaskfor,or
examine, thequalifications offoreign service providers except forservice providers intheeducation
andmedical sectors.
Forservice providers intheeducation andmedical sectors, theMinistry ofEducation andthe
Ministry ofHealth respectively haveequivalence committees which examine thequalifications ofthe
intending service providers.
Asforother sectors, there arenoqualification requirements anditislefttotheemployers to
takecareofthequalifications.
Question 34.
AreallWTO Members 'qualifications recognised onanequal basis?
Reply
Yes.
Question 35.
Does ithave mutual recognition agreements, andifso,withwhom?
Reply
There arenosuchagreements.
Question 36.
Isthere aframework law?
Reply
No.
(d) Monopolies andexclusive service suppliers
Paragraph 174(WT/ACC/OMN/2)
Question 37.
What other activities areexercised bypublic utilities?WT/ACC/OMN/6
Page10
Reply
These include sewage system, refuse disposal, maintenance ofroads andmaintenance ofpublic
parks.
Question 38.
Arethere anyplans tochange thelawonmonopolies inparticular onbasic telecommunications?
Reply
No.
Question 39.
Howandinwhich time-frame willtheprivatization oftelecommunications, highways andpostal
service willtakeplace?
Reply
Itisunder consideration bytheGovernment.
Question 40.
Arethere anyrestrictions forforeign participation inprivatization projects?
Reply
Foreign participation inprivatization isencouraged. Companies established totakeover
privatized projects shallbejoint-stock companies offering atleast40percentoftheirshare capital
forpublic subscription. Foreign equity insuchcompanies shallbelimited to49percent.
Question 41.
Could theSultanate ofOman provide more specific information, including policies andcontrols,
related totheprivatization programmes intheservice sector? (seealsoparagraph 25ofthe
Memorandum (WT/ACC/OMN/2)).
Reply
Please seereplies toquestions 10,11and12oftheQuestions andReplies totheMemorandum
ontheForeign Trade Régime (WT/ACC/OMN/5).
(h) Government procurement
Question 42.
Please describe fully theprice preference scheme.WT/ACC/OMN/6
Page11
Reply
Ifthespecifications offoreign andOmani orGCC contract bidsarecomparable, thebidof
anOmani service supplier would beaccepted ifitishigher bynomore than10percent. Similarly,
ifthebidofGCC suppliers ishigher bynomore than5percentascompared withforeign suppliers,
thatwould beaccepted.
3. Market Access andNational Treatment
(c) Limitations onthetotalnumber ofoperations ortotalquantity ofoutput
Paragraph 183(WT/ACC/OMN/2)
Question 43.
Could Oman listtheservices sectors which arereserved totheState?
Reply
There are:airtransport, television andradios, postal services, basic telecommunications and
public utilities suchaswater, electricity.
Question 44.
What typeofrestrictions doestheCentral Bank ofOman impose onthenumber ofbranches that
aparticular foreign bank canoperate inOman? (WT/ACC/OMN/2, paragraph 183,page24)?
Reply
TheCentral Bank ofOman allows eachbank, whether foreign orOmani, toopenuptofour
branches intheGovernorate ofMuscat (Muscat area) without anyrestriction.
Ifabankwants toopenabranch inexcess offourintheGovernorate ofMuscat, itisallowed
onthecondition thatitshould alsoopenabranch inanunbanked town orinatown where there is
onlyoneexisting bankbranch. Thisrestriction applies bothtoOmani andforeign banks.
Banks wanting toopenabranch intowns other thanMuscat areawhere three ormore bank
branches arealready approved/functioning, arerequired toalsoopenabranch inanunbanked town
orinaone-banked town. Thisrestriction isalsoapplicable tobothOmani andforeign banks.
Banks,foreignandOmani,areallowedcompletefreedomtoestablishbranchofficesinunbanked
towns.
Theabove-mentioned conditions havebeenmade known toallbanks through Central Bank
ofOman Circular BM/748 of8January 1995, which isavailable intheSecretariat forconsultation
(Accessions Division, Room 1126).
Itmaybenoted thatthere isnoannual quota orrestriction onthenumber ofbankbranches.
Theabove-mentioned conditions areapplicable toallbanks, Omani orforeign. Theconditions are
transparent andareapplied impartially.WT/ACC/OMN/6
Page12
Question 45.
Could Oman specify thequantitative restrictions applicable tobranches: isthisafixed number
ordoesitchange onayearly basis andhowistheevaluation being done?
Reply
Please seereply toquestion 44above. Asexplained therein, there isnofixed number nor
isthereayearly quota andthereisnodiscrimination against foreign banks. Theconditions areequally
applicable toOmani banks.
Question 46.
How arethelicences allocated?
Reply
Please seereply toquestion 44above. There isnoallocation oflicences.
Question 47.
Canaforeign insurance company provide direct insurance through agents orrepresentatives in
Oman?
Reply
No.
Question 48.
With respect tolimitations onthetotal number ofoperations ortotal quantity ofoutput,
paragraph 183stipulates that, "theCentral Bank ofOman imposes restrictions onthenumber
ofbranches thataparticular foreign bank canoperate inOman".
How willOman ensure transparency andimpartiality when imposing suchrestrictions?
Reply
Please seereply toquestion 44above.
(d) Limitations onthetotalnumber ofnatural persons employed inparticular sectors
Paragraph 184(WT/ACC/OMN/2)
Question 49.
TheCustom Lawsetsuplimitations forforeigners thatmaybeemployed inseveral services sectors
(certain percentages oftheemployment reserved toOmanis).
Isthere amore specific procedure which applies forthese limitations (different procedure for
different functions)?WT/ACC/OMN/6
Page13
Reply
Allservice companies whether Omani orforeign, arerequired bylawtoemploy acertain
percentage oftheirtotalemployees from Omani nationals. Thepercentages fordifferent sectors are
asfollows:
- Transport (road, airandmarine) 60%
storage andcommunications
- Finance, insurance andrealestate 45%
- Banking 85%
- Restaurants andHotels 30%
- Wholesale andretail trade 20%
- Construction services 15%
These percentages were required tobeachieved byallenterprises, domestic orforeign, by
theendof1996. Thedeadline hasnowbeenextended totheendof1997.
Companies wishing toemploy foreign nationals havetoapply totheMinistry ofSocial Affairs
andLabour toobtain awork permit. TheMinistry willissuethework permit ifthecompany hasmade
satisfactory progress inemploying Omani nationals andinachieving therequired targets.
Thepercentages areoverall percentages forthestaffofacompany. There isnorequirement
forachieving thesepercentages forparticular categories ofstaff. Forexample, thelawdoesnotrequire
thatthepercentage should befulfilled separately formanagerial staffandforlower staff.
Question 50.
How willthis"Omanising" beexercised withregard toforeign service suppliers andtoforeign
workers?
Reply
TheOmanization isexercised withregard toforeign service suppliers (andalsoforlocalservice
suppliers) byrequiring themtosubmit Omanization Plans totheMinistry ofSocial Affairs andLabour
showing thebreak-down ofexisting staffasbetween Omanis andforeigners andhowthecompany
plans toproceed withOmanization. Itisalsoexercised forbothlocalandforeign companies through
theinstrumentality ofwork permits. Ifahotel, forexample, hasatotalstaffof100outofwhich Omani
nationals areonly20,andthehotelapplies forworkpermits toemploy 10foreign workers, theMinistry
ofLabour would notissue work permits unless itissatisfied thatsuitable Omanis withrequisite
qualifications were notavailable.
Question 51.
Arethere anyplans tochange thelaw?WT/ACC/OMN/6
Page14
Reply
There arenoplans atpresent.
Paragraph 185(WT/ACC/OMN/2)
Question 52.
What aretheconditions toobtain awork permit?
Reply
Thecondition isthattheOmanization programme isbeing carried outbytheCompany and
thatasuitable Omani isnotavailable.
Question 53.
How much timeisneeded inaverage?
Reply
Ittakes oneweek onaverage. Ifallthedocuments andrequirements arecomplete, thework
permit maybeissued eveninoneday.
Question 54.
Arethere anyspecific rules related toforeign workers ’temporary residence rights?
Reply
Foreign workers havealsotogetaResidence Permit from theRoyal Oman Police which is
issued aftertheissuance ofwork permit.
Question 55.
Arethefigures setorbeing re-evaluated, andifso,howandwhen?
Reply
Thefigures mentioned inreply toquestion 49above, aresetfortheperiod untiltheendof
1997.
Question 56.
Istheprocedure thesame foralldifferent nationalities?
Reply
Yes,theprocedure isthesame forallnationalities, except GCC countries forwhich there are
norestrictions.WT/ACC/OMN/6
Page15
Question 57.
Arethere different kinds ofwork permits (validity, degree, workers/professional, etc.)?
Reply
No,there isonlyonekindofwork permit.
Question 58.
What aretherules concerning temporary residence inOman byforeigners engaged inlabour,
trade inservices, asestablished bytheMinistry ofSocial Affairs andLabour? (WT/ACC/OMN/2,
paragraph 185,page 24).
Reply
Therulesconcerning temporary residence inOman byforeigners engaged intrade inservices
arelaiddown intheLabour LawofOman, acopyofwhich isavailable, inEnglish, intheSecretariat
(Accessions Division, Room 1126) forconsultation.
Allforeign workers andprofessionals, arerequired toobtain awork permit fromtheMinistry
ofSocial Affairs andLabour. Enterprises employing foreign workers arerequired tofollow thepolicy
ofOmanization. Rules andprocedures concerning work permits andtheOmanization policy are
explained indetail inreplies toquestions 49to57above.
After obtaining awork permit, aforeign worker hasalsotoobtain aResidence Permit from
theRoyal Oman Police.
Business visitors coming onshort visits havetoobtain anentry visafromanOmani embassy
orconsulate abroad. Such visas canbeobtained without difficulty.
(e) Restriction on,orrequirement of,specific types oflegal entities
Paragraph 186(WT/ACC/OMN/2)
Question 59.
Foreign participation issubject tocertain limitations. Could Oman specify ceilings applying to
companies withacapital oflessthanUS$390,000.
Reply
There isnomonetary ceiling oncompanies providing business services. However, foreign
serviceprovidershavetohaveajoint-venturewithOmanipartnersandforeignequityinbusinessservices
islimited to65percent.
Question 60.
Moreover, itappears thatadiscretionary economic needs testapplies toforeign ownership up
to100percentifthecompany ’stotalcapital amounts toUS$1.3million. Could Oman specify
what isunderstood bythedevelopment ofthenational economy?WT/ACC/OMN/6
Page16
Reply
Thedevelopment ofthenational economy isdetermined onthebasis ofthefollowing:
- contribution todiversification oftheeconomy;
- economic development ofOman outside thecapital (Muscat) area;
- application ofnewtechnology.
Question 61.
How much timeisneeded, onaverage, before approval bytheCabinet isobtained?
Reply
Itdepends onacase-by-case basis.
(f) Limitations ontheparticipation offoreign capital
Paragraph 188(WT/ACC/OMN/2)
Question 62.
Could thepossibilities offoreign lawyers bespecified?
Reply
Please seereply toquestion 24above.
Question 63.
What kindoflegal services areforeign lawyers permitted toprovide?
Reply
Please seereply toquestion 24above.
Question 64.
Towhat extent areforeign lawyers permitted topractice Oman lawand/or their home country
lawand/or international law?
Reply
Please seereply toquestion 24above.
Question 65.
With regard toproviding education services, including theestablishment of(private) schools and
capital participation, arethere anyrestrictions forforeigners orforeign firms inthisarea?WT/ACC/OMN/6
Page17
Reply
Foreignindividualsandfirmsareallowedtoprovideeducationalservices,includingestablishment
ofprivate schools. However, therehastobejointventure withanOmani partner; theshare offoreign
partners islimited to49percent. Approval fortheschool hastobeobtained from Ministry of
Education.
Question 66.
Arethere anyother service sectors, apart from accounting andauditing companies, open to
foreigners only ifthey form ajoint venture with Omani companies? (WT/ACC/OMN/2,
paragraph 188,page 25).
Reply
Yes,allother service sectors.
(g) Measures providing forlessthannational treatment
Question 67.
WillOman bealtering itsmeasures providing forlessthannational treatment -inparticular its
restrictions onforeign landownership -tobring itintolinewithArticle XVII oftheGeneral
Agreement onTrade inServices? (WT/ACC/OMN/2, paragraph 189,page 25)?
Reply
Thelawrelating toownership oflandbyforeign companies hasbeenamended. Itnowallows
joint-stock companies with49percentforeign equity toacquire landforbusiness purposes.
Limited Liability Companies mayconclude long-term (50years) usufruct contract witheither
thepublic orprivate sector afterobtaining theapproval oftheMinistry ofCommerce andIndustry.
4. Exceptions toMost-Favoured-Nation Treatment
Paragraph 190(WT/ACC/OMN/2)
Question 68.
Article 8oftheUnified Economic Agreement oftheGCC specifies rules related tofreedom of
movement, work andresidence, right ofownership andfreedom ofexercising economic activities
including service activities.
HowistheSultanate ofOman implementing thisAgreement? Isthere more specific information
available?
Reply
Oman isimplementing itbynotplacing anyrestrictions onthese activities asfarasGCC
countries areconcerned. TheUnified Economic Agreement hasbeenagreed tobytheHeads ofStates
ofallGCC countries. Byvirtue ofthatitautomatically becomes partofOman ’slawandno
implementing regulations arerequired.WT/ACC/OMN/6
Page18
Question 69.
Asmentioned, theSultanate ofOman maintains bilateral trade andeconomic agreements with
many Arab andnon-Arab countries and, thatthese agreements aregeneral goodwill type
agreements based onmost-favoured-nation (m.f.n.) treatment.
Dothese agreements givepreferential treatment tospecific countries, andifso,inwhich service
sector?
Reply
There isnopreferential treatment foranycountry under these agreements.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade in
Services
Question 70.
Which ofthebilateral trade andeconomic agreements signed byOman cover trade inservices?
(WT/ACC/OMN/2, paragraphs 191-194, page 25).
Doanyofthese agreements confer preferred orreciprocal supplier status oncompanies from
signatory countries?
Reply
None ofthebilateral agreements covers trade inservices. None oftheagreements confers
preferred orreciprocal supplier status oncompanies from signatory countries.
Question 71.
WilltheSultanate ofOman adhere totheWTO Agreement onTrade inCivil Aircraft from the
dateofWTO accession?
Reply
No.
2. Economic Integration, Customs Union andFreeTrade Area Agreements
Question 72.
Please describe howOman intends toimplement theGCC Agreement inamanner consistent with
the"substantially alltrade" requirement ofGATT Article XXIV?
Reply
TheUnified Economic Agreement between sixGCC member States hasbeeninexistence since
1982. Webelieve itwasnotified totheGATT byKuwait in1982. Wepresume itmight havebeenWT/ACC/OMN/6
Page19
examined bytheGATT andifnotexamined overthese years, itmight havebeenconsidered tobe
consistent withtheGATT provisions.
ItisanAgreement between sixcountries, fourofwhich arealready Members oftheWTO.
Webelieve thatthisquestion andother questions ontheGCC freetradeareashould more appropriately
beaddressed either totheexisting fourWTO Members orbeaddressed inthecontext ofameeting
oftheWTO Committee onRegional Arrangements.
SincethisquestionandotherquestionsontheGCCfree-tradeareaconcernallsixGCCcountries
andnottheSultanate ofOman alone, wefeelitmaynotbeappropriate onourparttotackle these
questions inisolation.
Question 73.
Please define thecomponents ofanimport thatarecounted toward the40percentGCC value
added necessary toreceive GCC-tariff exemption.
Reply
Please seereply toquestion 72above.
Question 74.
Please identify allproducts, including HStariff numbers, forwhich Oman grants preferential
tariff treatment andallproducts ofwhich Oman receives preferential tariff treatment under the
GCC agreement.
Reply
Please seereply toquestion 72above.
Question 75.
Areanyofthetrade preferences granted orreceived ofanon-tariff nature? Ifso,please describe
them andlisttheitems covered.
Reply
Please seereply toquestion 72above.
Question 76.
What isthestatus oftheestablishment andimplementation oftheuniform GCC external tariff?
Please confirm thattheduties andregulations imposed onnon-GCC imports willbeapplied in
conformity withArticle XXIV.
Reply
Please seereply toquestion 72above.WT/ACC/OMN/6
Page20
Question 77.
Please explain what ismeant bytheestablishment ofa"minimum" external tariff inthecontext
oftheGCC customs union.
Reply
Please seereply toquestion 72above.
Question 78.
Isthere aplanandaschedule fortheformation ofthecustoms union within areasonable time,
asrequired under GATT Article XXIV? Please elaborate onthetimetable fortheplanned regional
freetrade area.
Reply
Please seereply toquestion 72above.
Question 79.
Please describe Oman 'sparticipation inthispreferential system.
Reply
TheSultanate ofOman neither receives norextends trade preferences under thissystem.
Annex 1-Foreign Trade Statistics
Question 80.
What doesOman estimate tobethetotalvalue ofunrecorded imports? What products aremost
commonly unrecorded andfrom which countries aretheyimported?
Reply
Nofigures areavailable. Most ofthese arefrom neighbouring countries; goods brought by
individuals.
Question 81.
Given theimportance ofoilexports inOman 'strade régime, please provide aseparate table
providing thedirection ofallexports, including oilexports.
Reply
Therequired tables arereproduced hereunder.WT/ACC/OMN/6
Page21
Table 1
Value ofDomestic Non-oil Exports*
(InROthousand)
1991 1992 1993 1994 1995
1. Live animals andproducts thereof 21251 20577 28274 30841 35449
2. Vegetable products 5245 8087 9090 9514 12666
3. Animal orvegetable fatsandoil 2249 3181 4401 6277 8291
4. Foodstuffs, beverages, tobacco and
products thereof3063 3623 3279 3577 5030
5. Mineral products 8164 9669 13299 15437 19172
6. Products ofchemical andallied
industries3954 4703 5797 4475 6498
7. Plastics, rubber articles thereof 2081 1565 1804 2094 2194
8. Textiles andarticles thereof 10760 18064 19754 25837 32385
9. Base metals andarticles thereof 18475 19631 26200 33227 41528
10. Other products 3826 7612 10593 14133 18801
Total 79068 96712 122491 145412 182014
*Excluding re-exports
Source: Customs Department
Table 2
Geographical Distribution ofValue ofNon-oil Exports in1995
(inROmillion)
Country Non-oil Exports %ofTotal Non-oil Exports
UAE 218.9 43.5
Hong Kong 46.6 9.2
Iran 48.0 9.5
Saudi Arabia 21.2 4.2
USA 29.3 5.8
Tanzania 22.6 4.5
UK 11.2 2.2
Singapore 6.3 1.3
Zambia 11.2 2.2
Japan 9.9 2.0
Others 78.7 15.6
Total 503.9 100.0
Source: Customs DepartmentWT/ACC/OMN/6
Page22
Table 3
Direction ofOilExports
(inmillion barrels)
Country ofdestination 1991 1992 1993 1994 1995
Japan 100.1 102.0 89.9 115.1 101.0
Singapore 19.3 11.6 16.5 6.7 6.5
China 17.3 21.1 27.9 27.0 31.3
Korea 52.5 70.8 68.2 44.5 53.2
United States 1.3 1.5 10.9 16.0 7.2
Taiwan 18.6 20.0 21.0 19.2 16.1
Thailand 11.1 1 17.5 26.8 41.3
Yemen 5.6 10.5 12.1 4.2 10.9
Others 9.1 1.5 3.4 11.0 16.9
Total 234.9 252.5 267.4 270.5 284.4
Source: Ministry ofPetroleum andMinerals andMinistry ofFinanceWT/ACC/OMN/6
Page23Table 4
Balance ofPayments Estimates
1995 -1986
(inROmillion)
Items 1995
(prov.)1994 1993 1992 1991 1990 1989 1988 1987 1986
1. Trade Balance 648 588 411 636 594 1042 654 385 707 113
1.1 Merchandise Exports &Re-exports (f.o.b.) 2332 2131 2063 2136 1873 2118 1564 1285 1463 1093
1.11 OilExports 1828 1627 1621 1786 1629 1942 1396 1130 1339 981
1.12 Other Exports 182 145 122 97 79 69 67 63 39 27
1.13 Re-exports 322 359 320 253 165 107 101 92 85 85
1.2 Merchandise Imports (c.i.f.) -1684 -1543 -1652 -1500 -1279 -1076 -910 -900 -756 -980
1.21 Recorded (customs) -1634 -1505 -1582 -1449 -1228 -1031 -869 -846 -701 -917
1.22 Unrecorded -50 -38 -70 -51 -51 -45 -41 -54 -55 -63
2. Services andPrivate Transfers -990 -943 -805 -806 -654 -571 -520 -519 -381 -505
2.1 Travel -18 -18 -18 -18 -18 -18 -18 -18 -18 -18
2.2 PortDues 5 5 5 5 5 4 4 5 5 5
2.3 Profit Remittances -182 -195 -197 -205 -156 -149 -131 -135 -134 -174
2.31 PDO Foreign Partners -114 -131 -133 -142 -106 -86 -75 -70 -61 -57
2.32 Contracters, Commercial Banks -68 -64 -64 -63 -50 -63 -56 -65 -73 -117
2.4 Official Interest 9 16 33 29 59 31 14 11 30 32
2.41 Receipts 83 85 100 105 128 123 109 95 103 107
2.42 Payments -74 -69 -67 -76 -69 -92 -95 -84 -73 -75
2.5 Other Official Interest 31 -8 56 17 -1 7 6 -7 89 113
2.6 Commercial Bank'sInterest (net) 11 14 6 4 10 14 15 11 8 7
2.7 Other Services (net) -177 -165 -158 -184 -218 -146 -106 -93 -91 -147
2.8 Other Private Transfers - - - - - - - - -
2.9 Worker 'sRemittances -669 -592 -532 -454 -335 -314 -304 -293 -270 -323
2.91 Inward Remittances 15 15 15 15 15 15 15 15 15 15WT/ACC/OMN/6
Page24Items 1995
(prov.)1994 1993 1992 1991 1990 1989 1988 1987 1986
2.92 Outward Remittances -684 -607 -547 -469 -350 -329 -319 -308 -285 -338
3. Current Account Balance -342 -355 -394 -170 -60 471 134 -134 326 -392
4. Official Capital -21 95 -40 94 86 -173 26 86 -49 211
4.1 Grants 11 10 7 -6 -1 -22 6 16 3 0
4.2 Loans (net) -51 162 -81 40 85 -147 35 72 -52 216
4.21 Short term (net) -59 52 -55 63 0 - - - - -
4.22 Medium andLong term (net) 8 110 -26 -23 85 -147 35 72 -52 216
4.221 Receipts 118 254 137 106 227 57 232 219 123 298
4.222 Amortization -110 -144 -163 -129 -142 -204 -197 -147 -175 -82
4.3 Development Bonds 53 -34 65 65 1 - - - - -
4.4 Other Official Capital (net) 0 -3 -19 -5 1 -4 -15 -2 0 -5
4.5 Contribution toOilFund -34 -40 -12 0 0 0 0 0 0 0
5. OilSector Capital (net) 1 0 66 18 126 -27 18 47 5 110
5.1 Direct Investment 11 23 54 37 49 54 43 34 12 51
5.11 PDO Foreign Partners -2 3 11 10 18 14 -3 -13 -18 22
5.12 Other Companies 13 20 43 27 31 40 46 47 30 29
5.2 OilExport Credit (net) -10 -23 12 -19 77 -81 -25 13 -7 59
6. Commercial Banks Capital (net) 1 0 22 5 1 1 0 1 1 2