 
  WORLD TRADE  
ORGANIZATION  G/STR/N/10 
17 February 2004 
 (04-0657) 
Working Party on 
State Trading Enterprises  
 
 
 
STATE TRADING 
 
Notifications Pursuant to Article XVII:4(a) of the GATT 1994 and  
Paragraph 1 of the Understanding on the Interpretation of Article XVII  
 
 1. Pursuant to Article XVII:4(a) of the GA TT 1994 and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, Me mbers shall notify their state trading enterprises to the Council for 
Trade in Goods in accordance with the following working definition of such enterprises: 
 
 "Governmental and non-governmental enterp rises, including marketing boards, which 
have been granted exclusive or special ri ghts or privileges. including statutory or 
constitutional powers, in the ex ercise of which they infl uence through their purchases 
or sales the level or direc tion of imports or exports." 
 
2. In accordance with the recommendati on adopted by the Working Party on 
11 November 2003
1 Members are required to submit new and full notifications on state trading every 
second year.  Members are therefore invited to submit for 2004 new and full responses to the questionnaire on state trading (G/STR/3) repr oduced in the Annex to this document.  
 
3. The deadline for submission of the 2004 new and full notifications is 30 June 2004 . 
 4. Responses to the above request will be issued, as received, in the G/STR/N/10 series under the respective country codes.   
 
                                                     
 
1 The Council for Trade in Goods approved this recommendation on 26 November 2003, and agreed to 
implement it as of the year 2004. G/STR/N/10 
Page 2  
 
 ANNEX 
 
QUESTIONNAIRE
2 ON STATE TRADING 
 
Name of Member  
 
 I. Enumeration of State Trading Enterprises  
 A. Identification of state trading enterprises. 
 B. Description of products affected (inc luding tariff item number(s) encompassed in 
product description).  
 
II. Reason and Purpose   A. Reason or purpose for establishing and/or maintaining state trading enterprise.    B. Summary of legal basis for granting the relevant exclusive or special rights or 
privileges, including legal provisions and summary of statutory or constitutional 
powers.  
 III. Description of the Functioning of the State Trading Enterprise 
 
 A. Summary statement providing overview of operations of the state trading enterprise. 
 B. Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise.  
 C. Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation. 
 D. How import/export levels are established by the state trading enterprise.  E. How export prices are determined.  F. How the resale prices of imported products are determined.  G. Whether long-term contracts are negotiated by the state trading enterprise.  Whether 
the state trading enterprise is used to fulfil contractual obligations entered into by the 
government. 
 H. Brief description of market structure.  
 
IV. Statistical Information ( see attached Tables I - III)  
 
V. Reason why no foreign trade has taken place ( as appropriate)  
 VI. Additional Information ( as appropriate)  
  
 
                                                     
 
2This questionnaire is to be filled out according  to the Guidelines contained on pages 5-7.   
  G/STR/N/10
 Page 3 
TABLE I  
 
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE 
 
STATISTICAL INFORMATION, IMPORTS  
 
Description of product(s) 
(including HS number(s)) Total quantity imported3 Quantity imported by 
state trading enterprise1 Average import price Av erage  representative 
domestic sales price Mark-up4 National production 
1 2 3 4 5 6 7 
       
       
 
 
 
                                                      
3In cases where no imports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
4Members may report either under columns 4 and 5 or under column 6.   
 G/STR/N/10 
Page 4  
TABLE II  
 
 
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE 
 
STATISTICAL INFORMATION, EXPORTS  
 
Description of product(s) 
(including HS number(s)) Total quantity exported5 Quantity exported by 
state trading enterprise1 Average procurement 
price6 Average  representative 
domestic sales price Average export price National production 
1 2 3 4 5 6 7 
       
       
 
 
 
  
                                                     
 
5In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
6In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.   
  G/STR/N/10
 Page 5 
 
TABLE III  
 
STATE TRADING:  NAME OF STATE TRADING ENTERPRISE 
 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise National production Domestic sales by 
state trading enterprise National consumption 
1 2 3 4 5 
 
 
 G/STR/N/10 
Page 6  
 
 GUIDELINES FOR COMPLETING THE QUESTIONNAIRE
 
    The following information should be provided se parately for each state trading enterprise 
notified. 
 SECTION I
 - to be submitted in full every three years and updated annually. 
 Objective:  Identify state trading enterprises at national and sub-nation al levels and the scope of products 
covered. 
 A. Identification of state trading enterprise
:  Name of the entity granted exclusive or special rights 
or privileges.7 
 
B. Description of product(s ):  Products for which each identifi ed state trading enterprise has 
exclusive or special rights or privileges.  Include  HS tariff number(s), at appropriate level of 
specificity, corresponding to the products under th e authority of the stat e trading enterprise 
concerned. 
 
SECTION II  - to be submitted in full ever y three years and updated annually. 
 
Objective:  State reason or purpose  for establishing and/ or maintaining the state trading enterprise.  
Identify and summarize legal provisions.  A. Reason or purpose
:  Explanation of reason for granting excl usive or special righ ts or privileges 
to the state trading enterprise. 
 B. Legal authority
:  Identify and briefly summarize author ity which grants exclusive or special 
rights or privileges.  Cite constitutional, legislative, and/or regulatory provisions, if any. 
 SECTION III
 - to be submitted in full every three years and updated annually. 
 
Objective:  Describe functioning of the state trading enterprise. 
 A. Summary overview of operations of the state trading enterprise.  Include, where possible, 
references to the illustrative list of activities of state trading enterprises. 
 
B. Specify all exclusive or special rights or pr ivileges granted to the STE as well as any other 
support or assistance provided by the gove rnment.  Comment should include, but not 
necessarily be restricted to, descriptions of the following:  (i) monopoly importer;  (ii) single 
desk seller; (iii) statutory power to control imports or exports even if not exercised;  
(iv) responsibility for issuing import/export licence s;  (v) responsibility fo r administering tariff 
rate quotas;  (vi) recipient of special financi ng (including commercial or  concessional credit or 
credit guarantees);  (vii) recipient of tax advantages ;  (viii) recipient of subsidies;  (ix) recipient 
of off-budget support or other s upport provided by the government or its instrumentalities;   
(x) preferential access to foreign exchange. 
 
  The descriptions should include, where possi ble, references to the illustrative list of 
relationships betw een governments and state trading enterprises. 
 
                                                     
 
7A "state trading enterprise" is defined according to  Article XVII of GATT 1994 and the Interpretative 
Notes thereto, and the Understanding on the Interpretation of Article XVII of GATT 1994.   G/STR/N/10 
 Page 7 
 
 
 C. Indication of other types of entities that participate in the same activities as the state trading 
enterprise, such as private traders that import/ export commodities also imported/exported by the 
state trading enterprise.  Description of conditio ns under which they are allowed to engage in 
activities in competition with state trading enterp rises - e.g., (i) equal terms for all trade, (ii) 
equal terms for specified quantity, (iii) participa tion subject to special restrictions/guidelines. 
 
D. Specify criteria/consi derations taken into account by the stat e trading enterprise  in determining 
the quantity of imports or expor ts it will undertake - e.g., (i) minimum purchase commitments, 
(ii) tariff rate quota admini stration procedures, (iii) dome stic supply/price situation, 
(iv) international price situation, (v) export pe rformance requirements, (vi) export restrictions, 
(vii) commercial considerations (e.g., marginal price relative to marginal cost, market demand).  
Include a description of any  direct or indire ct government involvement in the determination. 
 E. How the state trading en terprise determines its export price - e.g., (i)  in relation to prices in 
other markets, (ii) through tendering.  Include  information on the use of revenue generated. 
 
F. When the state trading enterprise imports, how  it determines the price at which it sells products 
to domestic wholesalers, retail ers, or end-users.  Include information on service fees and 
mark-ups, as well as on us e of revenue generated. 
 G. Whether and how long-term contracts are negotiated by the state trading enterprise.  Include 
information on any long-term co ntracts negotiated during the re porting period.  Whether and 
how the state trading enterprise is used to fu lfil contractual obligations entered into by the 
government. 
 H. Brief description of market structure - e.g., do mestic market structure, nature of competition, 
relation to international market, type of import protection, etc. 
 SECTION IV
 - to be submitted annually on a calendar, fiscal or marketing year basis.  Tables should 
cover the most recent three years for which data is  available.  Price data required for standardized 
products only.  Where price data e xpressed in other than US$, indi cate applicable exchange rate. 
 
Table I  - Objective:  Provide impor t information, by product. 
 1. Description of product(s)
:  Product description (e.g, wheat/flour) including HS number. 
 2. Total imports
:  Total quantity of imports of the product. 
 
3. Quantity imported by state trading enterprise :  Quantity of imports of the product by state 
trading enterprise. 
 4. Average import price
:  Total cost of imports by the state tr ading enterprise (c.i.f. basis) divided 
by the total quantity imported by the state trading enterprise. 
 
5. Average representative domestic sales price :  Average domestic wholesale market price during 
the year in question. 
 6. Mark-up
:  Average differ ence between the import price and re sale price.  Members may choose 
to report the average mark-up instead of the average import price and the average representative 
domestic price under columns 4 and 5. 
 7. National Production
:  Quantity of national production at th e appropriate level of specificity. 
 
 G/STR/N/10 
Page 8  
 
 Table II  - Objective:  Provide expor t information, by product. 
 1. Description of product(s)
:  Product description (e.g, wheat/flour) including HS number. 
 2. Total quantity exported
:  Total quantity of exports of the product. 
 
3. Quantity exported by state trading enterprise :  Quantity of exports of the product by the state 
trading enterprise. 
 4. Average procurement price
:  Average price paid by state trading enterprise to procure the 
product.  In cases where the in itial procurement pric e is subsequently augmented by other 
payments, such as pool returns or government su bsidies, those additional payments should also 
be reported. 
 5. Average representative domestic sales price
:  Average domestic wholesale market price during 
the year in question. 
 6. Average export price
:  Average sales price of exports (f.o.b. basis) by the state trading enterprise 
(total value divided by total quantity). 
 7. National Production
:  Quantity of national production at th e appropriate level of specificity. 
 
Table III  - Objective:  Provide information on domest ic commercial activities where products are 
internationally traded by the state trading enterprise.   
 1. Description of product(s)
:  Product description (e.g, wheat/flour) including HS number 
 
2. Domestic purchases by  state trading enterprise :  Quantity purchased by the state trading 
enterprise from domestic production. 
 3. National Production
:  Quantity of national production at th e appropriate level of specificity. 
 
4. Domestic sales by state trading enterprise :  Quantity sold by the state trading enterprise to 
domestic users. 
 5. National Consumption:
  Quantity of national consumption at the appropriate level of specificity. 
 
 
SECTION V  - Objective:  Explanation of why no trade has taken place. 
  In the event no trade has taken place for a product covered by the authority of a state trading enterprise, explain why.  
SECTION VI
 - Objective:  Provision of additional information. 
  Countries may provide any additional in formation that may be appropriate. 
 
__________ 
 
 