RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/MOL/11
23 June 1999
(99-2568)
Working Party on the
Accession of MoldovaOriginal:  English
ACCESSION OF THE REPUBLIC OF MOLDOVA
Additional Questions and Replies
The Ministry of the Economy of the Republic of Moldova has submitted the following
additional questions and replies concerning the Me morandum on the Foreign Trade Regime of Moldova
with the request that they be circulated to Working Party members.
_______________WT/ACC/MOL/11
Page i
CONTENTS
Question
NumberPage
Number
I. INTRODUCTION 1-2 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE31
2. Economic Policies
(a) Main directions of the ongoing economic policies,
tactical and strategical goals of the economic policies,
pricing policy, economic development plans,
privatization plans, sectoral priorities, regionaldevelopment plans, etc4-9 3
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE IN GOODSAND TRADE IN SERVICES10-11 8
3. Division of authority be tween central and sub-central
governments12-17 9
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing 18-26 11
(d) Other duties and charges, specifying any charges for
services rendered27-33 15
(e) Quantitative import restrictions, including prohibitions,
quotas and licensing systems34-37 18
(f) Import licensing procedures (Annex 3 refers) 38-42 19
(h) Customs valuation (WTO Customs Valuation
Agreement (Annex 4 refers), the Brussels Definition of
Value, or any other system) whether used only for
purposes of levying ad valorem rates of duty or for other
purposes43-64 20
(j) Pre-shipment inspection 65 30
(k) Application of internal taxes on imports 66-76 31
(l) Rules of origin 77 34
(m) Anti-dumping regime 80 35
(n) Countervailing duty regime 80 35
(o) Safeguard regime 80 35
2. Export Regulation 81 36
(f) Export financing, subsidy and promotion policies 82 36WT/ACC/MOL/11
Page ii
Question
NumberPage
Number
3. Internal policies affect ing foreign trade in goods
(a) Industrial policy, including subsidy policies 83 37
(b) Technical regulations and standards, including measures
taken at the border with respect to imports (Annex 5
refers)84-102 37
(c) Sanitary and phytosanitary measures, including
measures taken with respect to imports84-102 37
(l) Government procurement practices, including general
legal régime and procedures for tendering, dealing with
tenders and award of contracts103-110 44
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME111-127 46WT/ACC/MOL/11
Page 1
I. INTRODUCTION
Question 1.Is there some reason why WT/ACC/MOL/10 is not listed with the other documentation in
paragraph 3 of the draft Working Party Report?
Answer:
Since the Working Party Report was circulated later, it did not include the reference to
WT/ACC/MOL/10, as well as the updated information included therein. These and other amendments
will be introduced in the revised version of the Working Party Report.
Question 2.
We seek a commitment in the protocol from Mo ldova that, at the latest upon entry into force of
the Protocol of Accession, Moldova would submit all initial notifications required by anyAgreement constituting part of the WTO Agreement.
Answer:
Moldova will take the commitment in its protocol  to submit, at the latest upon entry into force
of the Protocol of Accession, all initial notifications required by any Agreement part of the WTO
Agreement.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic PoliciesQuestion 3.Re Question 2 of WT/ACC/MOL/9, please provide us with an update on progress in macro-
economic stabilization and macro-economic measures to deal with balance of paymentsproblems since November 1998.
Answer:
1998 was a very difficult year for Moldova. By the last quarter of 1998, the combination of
weak public finances, a problematic energy sector, and the fall of the Russian market produced an
acute economic crisis in the country. The crisis was characterized by capital flight, a depreciating
exchange rate, international reserves that fell to critically low levels, rising expenditure arrears and
budget financing coming only through central bank credit. Real GDP fell by 8.6 per cent in 1998 and
stood at MDL (Moldovan Leu) 8,804 million. Both i ndustrial and agricultural output dropped in 1998.
At the same time, final consumption constituted more than 102 per cent of GDP, with the trade deficit
growing from 15.4 per cent of GDP in 1997 to 24 per cent last year. 1998 was the first year since
independence when both export and import volumes registered a reduction, exports by 27 per cent and
imports by 12 per cent as compared with 1997. The pattern of trade has changed, with exports to CIS
countries in the second half of 1998 only one half the levels recorded during the same period of 1997.The crisis in Russia has not only influenced output through the collapse of Moldova's major export
market, but has also put pressure on the Leu causing the annual inflation rate for 1998 to stand at 18.2
per cent, ending the excellent anti-inflation record of the previous years.
Years of easy financing, especially foreign, a nd slow and incomplete structural reforms have
resulted in excessive budget deficits and increased indebtedness of public sector. The figures for theWT/ACC/MOL/11
Page 2
1998 budget proved unrealistic and called for considerable revisions. In the second half of 1998, the
Government had to cut spending in order to ensure the resumption of IMF and to accommodate its
limited financing options. The drastic reduction in spending was also necessitated by the sharper than
expected reduction in real output and therefore of revenue inflows. A large item of payment is the
public debt service, which in 1998 reached MDL 421.2 million including MDL 182.4 million forexternal debt servicing. The share of  public debt service in the consolidated budget expenditure
increased to 13.9 per cent in 1998. Capital investment, by contrast, has remained at a stagnant, low
proportion of public expenditure. Both 1998 and 1999 are considered as years with highest debt-
service payments. In December 1998 Moldova managed to repay the principal of a Merill Lynch
private placement by reducing its foreign currency reserves. However, in 1999 Moldova is to repay
considerable amounts for the Gazprom debt to Russia (about US$44.5 million) and Eurobonds
(US$7.45 million).
In view of this difficult situation the Govern ment and the National Bank of Moldova (NBM)
are seeking to stabilize the economy and avoid an inflationary spiral and further depreciation of the
currency, continue restructuring and therefore resume growth, avoid a default on treasury bill
redemption, renegotiate external debt and external debt arrears, and create a stable and credible policyenvironment to restore confidence and growth. Indeed the 1999 budget that was approved by the
Parliament in December calls for spending cuts in all major areas. It met the IMF’s fiscal austerity
requirements, and opened the way for resuming IMF funding. In January 1999 the IMF released a
US$35 million from a three-year EFF. However, this budget was built on the assumption of one per
cent growth in real output in 1999, and an averag e overvalued exchange rate of MDL 7 : US$1. Both
assumptions may prove to be overly optimistic.
In mid-January the National Bank of Moldova approved a monetary and credit policy for
1999. The target of this policy is to reduce the inflation rate from 18.2 per cent to 13-15 per cent. The
programme envisages that by the end of 1999 the money stock should be increased by 35 per cent andreach the level of MDL 2.29 billion, monetary base by 24 per cent to the level of MDL 1.23 billion,
and the volume of lending that goes directly to the national economy by 18 per cent to the level of
MDL 2.1 billion. In order to implement this it is planned to diminish the bank liquidity ratio from 0.94
to 0.89 and to gradually reduce the obligatory reserves ratio back to 8 per cent from 15 per cent. The
last measure becomes necessary in order to ease the pressure on an already fragile banking system. As
a result of resumed IMF lending, international reserves have risen, and are expected to rise again with
disbursement of US$35 million from the World Bank, but still remain at critically low levels. The lowlevels of reserves will force the NBM to continue its non-intervention policy, and its relative inability
to protect the Leu against further pressure. Since reaching its low point in December 1998, the Leu
has succeeded in remaining relatively stable through January and February 1999. Nevertheless in
March one could observe the cash exchange rate to decline much faster than the official rate, plunging
to MDL 10.3 = US$1. This makes it evident that the Leu remains vulnerable to shocks, either due to
debt crisis in Moldova or to further real depreciation in the currencies of its major trading partners.
Moldova’s external debts reached US$1.35 billion or approximately 140 per cent of GDP and
debt servicing difficulties are severe (in the first quarter of 1999 Moldova has already missed a
principal payment to Gazprom). However, further external financing is essential, and Moldova isseeking alternative sources of financing. The EU has already made EUR 15 million available. The
World Bank will provide up to US$60 million, including US$35 million from a structural adjustment
programme suspended in 1997, and a further US$25 million through the International Development
Association. The Government intends to use some of the privatization receipts from the sale of
Moldtelecom etc. towards debt repayment. Some commercial financing is also under discussion,including a syndicated loan towards the end of the year. Non-payments for energy, waste of energy,
low prices, energy thefts and the chronic build-up of debt to Gazprom can be partly resolved with an
agreed debt-equity swap between Gazprom and Moldovagas.WT/ACC/MOL/11
Page 3
(a) Main directions of the ongoing economic policies, tactical and strategical goals of the
economic policies, pricing policy, economic development plans, privatization plans, sectoral
priorities, regional development plans, etc.
State Ownership and Privatization
Question 4.We request that Moldova prepare a table li sting the number of firms identified for
privatization, listed by sector or industry, and noting the progress of their privatization over the
most recent representative period.
Re Question 3 in WT/ACC/MOL/9, please provide us with an update on your privatization
efforts in 1998, and a schedule for further efforts in 1999 - 2000. Please confirm in this update
that the privatization of those enterprises ma rked in WT/ACC/MOL/9 for total privatization—
namely textiles and garments, electronics, machine building, chemical and furniture products,
leather goods, food-stuff and package prod ucing enterprises and hotels—has begun.
Answer:
The Privatization Programme for 1997-1998 is still in force in parallel with the recently
adopted  Privatization Programme for the period of 1999-2000 due to the fact that a part of it has stillto be implemented. In Annex 1 to the Law on Privatization Programme for 1997-1998 there is a
schedule of enterprises identified for privatization. According to this schedule Moldova prepared
information on the state of the privatization process (see document WT/ACC/MOL/12), where
enterprises identified for privatization are listed by sectors.
The privatization of the enterprises marked in WT/ACC/MOL/9 for total privatization has
began and is at various stages of implementation.
Question 5.
Moldova's responses in WT/ACC/MOL/9 and pr evious indicate that its privatization
programme and other aspects of economic reform are well underway and ongoing. We seek acommitment from Moldova in the Working Party Report to report on its privatization
programme until it is completed and on other aspects of its economic reform and restructuring
programme. We suggest the following language:
"The representative of Moldova confirmed the rea diness of Moldova to ensure the transparency
of its ongoing privatization programme and to keep WTO Members informed of its progress in
the reform of its transforming economic and trade regime. He stated that his Government
would provide annual reports to WTO Members on developments in its programme of
privatization as long as the privatization programme would be in existence along the lines of
that provided to the Working Party. He also stated that his Government would provide annualreports on other issues related to its economic reforms as relevant to its obligations under the
WTO. The Working Party took note of these commitments."
Answer:
Taking into consideration requests from the member countries, Moldova improved its draft
Working Party Report related to the privatization programme. Moldova will take the commitment to
report on its privatization programme until it is completed and on other aspects of its economic reform
and restructuring programme relevant to its obligations as a member of WTO, and in the final
Working Party Report the Republic of Moldova will include the language suggested.WT/ACC/MOL/11
Page 4
Question 6.
Please report on the resolution of the tenders fo r the large enterprises in Telecoms and tobacco.
Answer:
The Law on the reorganization and privatization of "Moldtelecom" has been enacted.
"Moldtelecom" has been reorganized from a state company to a joint-stock company. A governmental
commission has been established to carry out the privatization of "Moldtelecom".
Soon an international tender will be announced to select a bank (consulting company) that
will help the Government with further stages of privatization.
After several attempts to privatize the tobacco industry the Government is still looking for a
formula to privatize both the fermentation plants and Chisinau Tobacco Factory.
The Government plans to privatize several tob acco fermentation plants (from Orhei, Falesti
and Ceadar-Lunga) through international investment tenders. Reiffeisen Investment AG, within the
TACIS Privatization Task Force Project (EU technical assistance programme) is the privatization
intermediary and will assist the Department of Privatization and State Property Administration in
carrying out valuation and due diligence of the companies, preparing Information Memorandums,
drafting documentation, promoting the companies and selling the companies' state shares.
Question 7.
Re Question 4 of WT/ACC/MOL/9, please confirm that the plans for privatizing energy
enterprises/providers has been approved.
Answer:
The privatization plans for energy enterprises has been approved.
Question 8.
Concerning Moldova's statement in the respon se to Question 8 of WT/ACC/MOL/9, we look
forward to the promised additional updates on the status of privatization of the energy sector
and private sector participation in the privatized or new entities.
Answer:
Starting from 1997, the electric energy sector is being decentralized and incorporated. State
Company "Moldenergo" was split, according to the functional principle, in generation, distribution
and transport enterprises. Incorporating sub-units of the former state company "Moldenergo" provides
for establishing new commercial relations between different players in the electroenergetic market,which need adjustment of the legal framework and a regulatory body that would arbitrate these
relations. With regard to the gas sector, it is not decentralization that is needed, but a merger of
existing distribution and transport enterprises into a single joint-stock company. The thermal energy
sector will be transferred into municipal ownership. In 1998, the split of the Joint Stock Company
"Tirex-Petrol" into independent enterprises, as well as their privatization, will be finished. Taking intoaccount the long-run nature of reform of the ener gy sector, the Department of Privatization will
elaborate a government programme of reorganization and technological renovation of this sector for
the period till 2005.
Starting in 1998, there will be privatized eight electric power enterprises: three generating
ones, and five distributing, all created as a result of split of Joint Stock Company "Moldenergo”. ForWT/ACC/MOL/11
Page 5
paying off the debts for gas, a part of the State's shares in the enterprise for gas transportation and
distribution is being transferred to the Russian Joint Stock Company "Gazprom".
At the same time the process of restructuring of the energy sector has already been started and
a number of laws on this issue have been enacted. Since 1997, Moldova has a legal frameworkallowing for long-term development of energy complex .  In this context, there were elaborated about
ten laws and normative acts. The state of implementation of the Privatization Programme for 1997-
1998 was very poor. This was due not only to the financial crisis in the neighbouring countries but
also to a low interest of investors. Long awaited strategic tenders for energy sector did not take place
last year and its privatization is extended in 1999.
The Law on the Concept of privatization of enterprises from the energy sector No. 63-XIV of
25 June 1998 and Law on individual project of privatization of enterprises from energy sector
No. 233-XIV of 23 December 1998, envisaged that distributing companies would be privatized first,
followed by the generating companies. Privatization represents a possibility for quick revitalizing of
the sector and supplying consumers with energy and energy resources in a reliable and efficient way,
at minimal cost.
The strategy of privatization of electroenergetic enterprises is based on objectives that should
be attained and on world experience. Strategic investors will be offered a package from 51 to 100 per
cent of shares having voting rights. Depending on the enterprise' financial and technical standing, the
strategic investors could be offered different proportions of participation in statutory capital.
The Government will need to make good the difference between accounts receivable and
accounts payable of these enterprises, and would approve the mechanism of managing the undertaken
stock of debt. As a main source of financing expenditures for repaying outstanding debts, tariffs for
electricity and gas, which should include a margin for servicing foreign debt, and budget allocationsfinanced from privatization process could be used.
Pricing Policies
Question 9.The response to Question 7 of WT/ACC/MOL/9 states that the foreseen gradual increase to
cost-recovering prices for gas, electricity and heating has not taken place as scheduled in 1997.
New tariffs for gas, electricity and heating were elaborated by the National Energy Regulatory
Agency in early 1998 and for electricity a nd for thermal energy and gas in October and
November 1998. Paragraph 16 of the draft report contradicts this information, however.
Please clarify and update in the draft Working Party Report the information on Moldova's
price controls and state pricing still in place. Are any products other than bread and energy
subject to such controls?
Is there any legal authority for Moldova to ap ply such controls other than Governmental
Decision No. 767 of 11 August 1997?
Moldova should also list its cu rrent price controls in the draft Working Party Report, by HS
line item as appropriate, citing the reasons  for their application and, as appropriate,
incorporate the following in that presentation:
The representative of Moldova confirmed that prices for goods and services in every sector of
Moldova were determined freely by market forces with the exception of those listed in Tables 1
and 2.WT/ACC/MOL/11
Page 6
The representative of Moldova confirmed those prices for goods and services in Moldova other
than for the items listed in Tables 1 and 2 were not subject to State control. He confirmed that
Moldova would apply its current state prices and any other state prices or price controls
applied from the date of accession in a WTO-consistent fashion, and would take account of the
interests of exporting WTO Members as provided for in Article III. 9 of the GATT 1994.Moldova would publish any list of goods and services subject to State pricing or price controls
in the Official Journal, including any change s in existing measures. The Working Party took
note of these commitments.
Answer:
In accordance with Governmental Decision No. 767 of 11 August 1997 National Energy
Regulatory Agency (NERA)  was created, being considered as a main regulatory body of the relations
between energy market players. However this Agency is a non - governmental, independent
regulatory body.
According to paragraph 6 of this decision,  NERA has the following functions:
- issuance of licenses for activities related to producing, transportation, dispatching
services, distribution, supplying, import and export of energy;
- regulation of tariffs for the energy products and services;
- ensuring protection of energy consumers rights;
- promotion of competition in the energy market.
NERA does not have the right to establish new tariffs for gas, electricity and heating, as well
as  price control. Rather it has the right to establish a methodology for calculation of costs and tariffs
of energy by electroenergetic enterprises. The methodology is available for a five year period. Thetariffs for production, transportation, distribution and marketing of energy have to cover the cost of
production, as well as the necessary benefit for continuation of enterprises’ functionality. At the same
time, the NERA limits the profit of electroenergetic enterprises.
At the time Governmental Decision No. 415 of 10 May 1999 was adopted, it ensured the cost
recovering level with recalculation for the previous months for the electricity, thermic energy and
natural gas (fixing the tariffs in MDL) but with the dramatic depreciation of the Moldovan currencythe tariffs established on the internal market for the energy products fell again below the delivery
costs.
Nevertheless, a new draft Govern mental Decision presented to the Government is expected to
bring tariffs for the energy products to the cost-recovering level again, thus being consistent with theabove mentioned methodology.
In addition to Governmental Decision No. 76 7 of 11 August 1997, Governmental Decision
No.547 of 4 August 1998 "On State coordination and regulation of prices and tariffs" establishes legal
authority to apply state control over the pri ces for a number of items listed in table below.WT/ACC/MOL/11
Page 7
Table 1:   Nomenclature of goods and services for
which fixed prices are settled by the Government and local authorities
Description of goods and services Regulating public body
Services supplied by cadastral territorial authorities Government of the Republic of
Moldova
Rent of public network by “Radio-Moldova” Company Government of the Republic of
Moldova
Paid medical services Government of the Republic of
Moldova
Products and services of monopolies Ministry of Economy and Reforms
Coal commercialized by Joint Stock Company “Tirex-petrol” Ministry of Economy and Reforms
Passenger rail transport services Ministry of Economy and Reforms
Telecommunication, wire broadcasting, telegraph, postal
services supplied for population within the Moldova’s territoryMinistry of Economy and Reforms
precious metals Ministry of Finance
Interurban and international road transportation of passenger
and freight (except air transport)Ministry of Transport and
Communication
Freight transportation of rail transport services Ministry of Transport and
Communication
Air transportation of passengers State Agency of Civil Aircraft
Natural gas, electric and thermal energy National Energy Regulatory Agency
Notary services Ministry of Justice & Ministry of
Finance
Aqueduct and sewerage services Local public authorities
Table 2. Nomenclature of goods and services for which there is a limited profitability established
Description of product HS code
1. Milk and dairy products 0401-0405
2. Cheese with fat up to 2 per cent 0406
3. Flour of I and II quality to make bread 1101-1102
4. Bread and bakery products 1905
At the same time, according to Governmental Decision No. 547 of 4 August 1995 there are a
number of goods (table 3), which for social reasons shall be sold with a margin of profit that may not
exceed 20 per cent of the wholesale price (except for pharmaceutical products for which the margin
may not exceed 40 per cent).
Table 3
Description of product HS code
5. Canned meat foodstuff 1602
6. Fruits and vegetables for children 0702, 0704-0709
7. Vegetables oil 1507-1515
8. Butter and dairy products 0405
9. Cheese 0406
10. Sugar 1701
11. Flour 1101-1102
12. Bread and bakery products 1905
13. Footwear for children Part of 64
14. Notebooks for children 482020
15. Household soap 340219
16. Detergents 3402WT/ACC/MOL/11
Page 8
Description of product HS code
17. Toys 9501
18. Pharmaceutical products (approved by the Ministry of Health) 30
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 10.The response to Question 12 of WT/ACC/MOL/9 states that "all decisions of the executive
branch which affect international trade a re subject to independent judicial review."
Would this review be made by the economic courts? Does this include all issues covered by
WTO Agreements, e.g., for TRIPS and GATS as well as customs matters?
Answer:
All issues covered by WTO Agreements are examined in the ordinary courts or economic
court depending on the parties involved. In the case where both parties are juridical persons the issue
will be examined by the economic court, and in the case that one of the parties involved is a natural
person the issue is examined in the ordinary court.
Question 11.
Moldova should describe, for the Working Party Report, how administrative decisions on issues
covered by the WTO can be appealed (a) within the Ministry responsible for the issue, and (b)
to an independent tribunal, describing which of their court systems would he involved.
Answer:
Any administrative decisions on issues covered by the WTO can be appealed:
(i) within the responsible governmental institution according to the Law on Petitioning
No. 190 - XIII of 19 July 1994 with following amendments introduced by the Law
No. 18 - XIII of 14 May 1998.
Article 2 of the Law on Petitioning provides the right of foreigners to address complaints to
the relative governmental institutions or tribunals in case their legitimate rights are affected.
Article 7 (1) of the same Law states that the claims shall be presented to the concerned
institutions in which competence is the question addressed. Paragraph 2 of this Article states that the
claim on an administrative decision or act produced by an authority shall be addressed to the
immediate hierarchically superior body. Paragraph 3 of the same Article states that the claims ondecisions of the organizations without hierarchically superior institution, as well as on decisions of
local authorities and municipalities of the cities under the republican authority shall be addressed to
the tribunals.
Articles 8 and 9 stipulate the timeframe in which the petitions shall be examined. This
timeframe varies from one week to one month. In special cases the examination may take maximum
two months.
Full text of this law in English will be submitted before the next Working Party meeting
together with other laws.WT/ACC/MOL/11
Page 9
(ii) to an independent tribunal
- In the case both parties at the trial are juridical persons the issue will be examined by
the economic courts. There are two economic courts in Moldova. One has the
jurisdiction over the Chisinau municipality and the other over the rest of Moldova.;
- If one of the parties to the trial is a natural person, in this case the issue is brought to
the ordinary court and other superior judicial institutions as described below.
Courts of first instance are based in each admi nistrative unit (former rayons), in total 40.
Despite the creation of new administrative units - judets, that consist of several rayons,  courts of first
instance remain in each former administrative unit,  as well as major cities: Chisinau, Balti, Bender
and Tiraspol that have several such courts based on their internal administrative division.
Higher rank authority tribunals are based in Chisinau, Balti, Bender, Tiraspol and Cahul.There is one Court of Appeal in Chisinau and the Supreme Court of Justice is also based in
Chisinau.
3. Division of authority between central and sub-central governments
Question 12.
Re Question 13 of WT/ACC/MOL/9, please confirm that the fiscal, financial and budgetary
activities performed by local governments will be in compliance with Art III of GATT 1994.
Answer:
Moldova confirms that the fiscal, financial and budgetary activities performed by local
governments will be in compliance with Article III of GATT 1994.
Question 13.
Paragraph 25 of the draft Working Party Report states that the "Gagauz-Yeri region" has
autonomy in the area of economy, but "had no  autonomous authority with respect to foreign
trade, did not issue or implement technical standards, sanitary or phytosanitary standards and
did not subsidize."
Please indicate if the region has the power to  levy its own local taxes on goods, e.g., excise,
stamp, or sales taxes, or any authority to establish requirements for investment, e.g., traderelated investment measures covered by the WTO Agreement on TRIMS.  In case provide this
information for inclusion in the draft Working Party Report.
In order to clarify the status of WTO provi sions within Moldova after accession, we would
appreciate a statement/commitment along the following lines:
The representative of Moldova confirmed that  sub-central entities had no autonomous
authority over issues of subsidies, taxation, tr ade policy or any other measures covered by WTO
provisions. He confirmed that the provisions  of the WTO Agreement, including Moldova's
Protocol, shall be applied uniformly throughout its customs territory and other territoriesunder its control, including in regions engaging in border trade or frontier traffic, special
economic zones, and other areas where special re gimes for tariffs, taxes and regulations are
established. He added that when apprised of a situation where WTO provisions were not being
applied or were applied in a non-uniform manner, central authorities would act to enforce
WTO provisions without requiring affected parties to petition through the courts. The WorkingParty took note of these commitments.WT/ACC/MOL/11
Page 10
Answer:
Based on the Law on Special Judicial Statute of the Gagauz-Yeri No. 344 of
23 December 1994. the autonomy of the "Gagauz-Yeri region" in economic matters refers mostly onits autonomy in administrating its own budget and running economic activity. This region has no
authority regarding the excise, stamp, or sales taxes or any other taxes related to trade, as well as on
establishing requirements for investment, e.g., trade related investment measures covered by the WTO
Agreement on TRIMS. These are under the exclusive authority of the Moldovan Parliament. All legal
acts adopted by the People's Assembly of Gagauz-Yeri region shall not contradict with Moldovan
legislation or international commitments taken by Moldova. All the WTO Agreements and Moldova's
commitments in the WTO will apply uniformly on its customs territory. Moldova agrees to introducethe text suggested above into its Working Party report.
Question 14.
Please confirm that Article 4 of the draft Foreign  Trade Law provides that after ratification of
the WTO protocol package by the Moldovan Pa rliament and Moldova's accession to the WTO,
the provisions of the WTO and Moldova's protocol will supersede any domestic laws found to
contradict them.
Answer:
Hereby, Moldova confirms that after ratification of the WTO protocol package by the
Moldovan Parliament and Moldova's accession to the WTO, the provisions of the WTO and
Moldova's protocol will supersede any domestic laws found to contradict them.
Question 15.
We would appreciate information from Moldova on  the application of WTO provisions in the
Transnistrian region, after Moldova's WTO accession.
We suggest that information on the special trade information facility provided for in the draft
Foreign Trade Law contained in paragraph 29 of the draft Working Party report and anysubsequent information provided by Moldova on this facility not related to the transparency
requirements of specific WTO Agreements covere d elsewhere in the report should be moved to
the "transparency" section of the report.
Answer:
As mentioned earlier in the reply to Question 14 of WT/ACC/MOL/9, legal bases for settling
the conflict represents the Memorandum on the basis for normalization of relations between the
Republic of Moldova and Transnistria, signed in Moscow on 8 May 1997, as well as the Agreement
on the Organizational Basis of Social-Economic Collaboration, signed on 10 November 1997.
Based on this Moldova is making every effort together with other interested countries to
liquidate the consequences of the conflict. The activity displayed so far proved to ensure economic
stability and compliance with Moldova's external obligations. In economic issues related to foreign
trade commitments Moldova succeeded in finding co mmon interest with the Transnistrian authorities.
Already decisive steps have been taken by Moldov an authorities to initiate local experts from the
region in the WTO issues, inviting them to various seminars on WTO issues. Despite the remaining
problems, they tend to lay mostly on political ground.WT/ACC/MOL/11
Page 11
Question 16.
Re Question 14 of WT/ACC/MOL/9, please specify what form of customs cooperation is in place
between Moldova and the Transnitria region.
Answer:
Moldova has signed a special protocol on customs cooperation with the Transnistria region
that foresees mutual elaboration of customs policy, exchange of statistics and facilitation of border
measures.
Question 17.
In addition, please confirm that Moldova is able  to fully apply the transparency requirements of
the GATS, including GATS Article III.
Answer:
Based on the Governmental Decision No. 1104 of 28 November 1997 all laws, governmental
decisions and other legal documents enter into force only after their publication thus ensuring the
compliance with Article III (1) of GATS. The English version of this Decision will be made available
to the member countries together with other laws before next Working Party meeting.
The information centre that will be established at the Ministry of Economy and Reforms
could serve as central GATS inquiry point. Other si milar inquiry points will be established in other
governmental institutions, such as the Ministry of Finance, National Bank, Ministry of Transport and
Communications thus ensuring compliance with paragraphs 3 and 4 of Article III of GATS.
In addition Moldova confirms that it will undertake all necessary measures to ensure full
application of other transparency requirements of the GATS, including GATS Article III.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
Question 18.
Article 7 of the draft Foreign Trade Law states "Both residents and non-residents can be
participants in foreign trade activity in the Republic of Moldova." In line with this, Moldova
states in paragraph 8 of the draft Working Pa rty Report that all fi rms and individuals are
authorized to import and export, with the ex ception that goods requiring import or export
licenses must be traded by firms, not indivi duals. Paragraph 8 also states that there are no
restrictions on the right of foreign and domestic individuals and enterprises to import and
export goods and services incompatible with WTO Agreements."
Answer:
Article 6 of the draft Foreign Trade Law states “the participants of foreign trade activity are
juridical and physical persons registered in the established way and which foreseen in its registered
documents performance of such activity ”.WT/ACC/MOL/11
Page 12
Both firms (juridical persons) and individuals can engage in import or export operations with
any commodities, including those for which a licence is required.
Question 19.
What other requirements or restrictions, wheth er or not in Moldova's view incompatible with
WTO Agreements, are applied to the right to im port and export? Are there special registration
requirements for traders?
Answer:
No other additional requirements exist.
Question 20.
The response to Question 36 in WT/ACC/MOL/9 states that Moldova has established "activity
licensing" requirements for firms performing certain activities. These activities are identified inthe response to Question 38 as firms importin g or wholesaling alcohol beverages or tobacco
products; importing or selling petrol and diesel; and importing or trading in chemical and
biological products and fertilizers for plants. Li censing is also required for trade or storage of
chemical reagents, liquefied gas and toxic chemical substances and with danger of deflagration;
ozone depleting substances; and ionic radiation sources radioactive materials.
We would appreciate more information on th e provisions of Government Decision No. 859 of
13 August 1998 that establishes the system.
Answer:
After the decision of the Constitutional Court the Governmental Decision No. 859 has been
abolished. Currently, the only law establishing a licensing system for some types of activities is the
Law "On Licensing of Certain Types of Activities" mentioned above. Article 18 of Chapter V “Final
Provisions” provides that in two months' term, the Government will adjust its normative acts in
accordance with the present law. Annex 2 of this Law lists the types of activities for which a licence is
required and responsible institutions for issuing such licensing. This list is presented together withthese answers in document WT/ACC/MOL/xx.
The English version of this Law is submitted together with these questions for members'
consideration.
Question 21.
Confirm that the list provided in response to Question 38 is exhaustive. Does the Decision
provide for expansion to other activities, or would that require additional legislation?
Answer:
The list provided in Annex 2 to the Law is exhaustive and its expansion to other activities
would require additional legislation as stipulated in Article 2 (2) of the same Law.
Question 22.
Please describe the requirements that must be met by individuals or firms to acquire a licence,
the criteria used to judge whether a licence woul d be granted, the timetable for receiving the
licence, and the duration of the licence.WT/ACC/MOL/11
Page 13
Answer:
The provisions of the draft Law “on licensing of certain types of activities” state the
following:
According to Article 6 the right to obtain the licence is given to any legal or natural person,
local or foreign, registered as subjects of entrepreneurial activity in the Republic of Moldova.
Article 7 of the same law states that in order to obtain a licence any economic agent has to
submit the following:
- request, where it should be indicated:
- for legal persons - name of enterprise and organizational type, address and
fiscal code;
- for natural person - name and surname, identity card data (number, home
address) and fiscal code;
- types of activity applied for.
- to the licence the following is annexed:
- statute of the company (for legal person) or decision of foundation (for
natural person);
- the act (certificate) of registration by the State Chamber of Registration of the
Ministry of Justice;
- in case of necessity – the authorizatio n of the institution responsible for the
relevant type of activity according to Annex 2 of the Law;
- According to Article 13 (2) the reasons to refuse the issue of a licence are:
- inauthentic or changed data, contained in the submitted documents;
- negative results of the expertise showing non-conformity of the existent
conditions (or lack of such conditions) for performing respective type of
activity (such as technical, technological, sanitary and hygienic conditions,ecological security of technological processes);
- In the case of the precedent for which the licence for the same type of activity
had been withdrawn.
- The provisions of the Article 12 state that the decision to issue or refuse a licence
shall be adopted within 30 days from the date of the presentation of all the documents
mentioned above.
According to Article 5 the licence is issued for a period of at least three years. For some types
of activities the licence is issued for one year.
Question 23.
Please outline the right of appeal for rejected licence applications.
Answer:
According to the Article 13 (4) of the above mentioned law the decision may be appealed in
accordance with existing legislation as specified earlier in the reply to Question 7.WT/ACC/MOL/11
Page 14
Question 24.
The draft Working Party Report states:
The representative of Moldova added that for me dications, drugs and medical equipment prior
authorization to import had to be obtained from  the Ministry of Health before an application
for an import licence could be made to the de partment for Foreign Economic Relations. In
accordance with Annex 3 to Government Deci sion No. 581 of 17 August 1995 the following
documents had to be presented in order to obtain  an authorization from the Ministry of Health
for activities requiring an authorization:
application for the authorization, stating th e type of activity for which the licence was
requested and the time period for which th e licence was needed. For legal persons the
application had to include the following additional information: name and legal status,
address, bank account number and name of bank where the account was held, fiscal
registration number. For individual firms: name and surname, passport details, fiscal
registration papers.
This would appear to be a form of activity licensing for pharmaceutical importing, not simply
an import licence related to a specific product.
Please clarify this point, and indicate to what extent the activity of importing pharmaceuticals is
subject to licensing. Please demonstrate that similar requirements are made of domestic firms
producing or distributing pharmaceuticals.
Answer:
The requirements laid down by Government Decision No. 581 of 17 August 1995 are no
longer valid since this decision has been superseded by Government Decision No. 777 of
13 August 1997.  Currently in the Republic of Moldova there is only one legal document on which the
import licenses are issued.
The detailed procedure for obtaining licenses and documents required have been provided in
previous submissions (WT/ACC/MO L/8/Add.1) with some clarif ications in WT/ACC/MOL/9. The
latest version of the document describing import licensing requirements is presented in document
WT/ACC/MOL/15 together with these answers. It applies in the same manner to domestic and foreign
firms engaging in such activities.
The activity of importing pharmaceuticals is not subject to licensing. There is just an import
licence for specific imports of pharmaceutical products.
Question 25.
Please add "import of pharmaceutical products" to  the table on activity licensing in the draft
working party report and include pharmaceuticals in the description of products covered by
this practice.
Answer:
As indicated in the answer to the previous  question the activity of importing pharmaceutical
products is not subject to licence and should not be specified in the table on activities licensing.WT/ACC/MOL/11
Page 15
Question 26.
We seek a confirmation from Moldova in the Working Party Report and protocol that its
activity licensing regime and other provisions of law do not restrict trading rights, along the
following lines:
The representative of Moldova confirmed that the former state foreign trade monopoly had
been abolished and that no restrictions existed on the right of foreign and domestic individuals
and enterprises to import and export goods wi thin Moldova'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 lic ensing requirements for those activities listed in
Table xx. The importation or exportation of pro ducts covered by activity licenses were subject
only to requirements consistent with the WTO Agreement. The activity licenses enumerated in
Table xx did not restrict foreign participation as they applied equally to foreign and domestic
businesses. Activity licenses were administered fo r the purpose of ensuring product safety and
____________.
The criteria for granting activity licenses were as follows: _________. They were published in
the Official Journal. The criteria for engaging in  import and export trade in the restricted
sectors were consistent with generally applicab le restrictions placed on trade in similar
domestically produced goods. The availability of activity licenses was not restricted nor was the
licensing applied to restrict imports, the produc tion, wholesale or retail trade in any product.
The representative of Moldova confirmed that  from the date of accession Moldova would
ensure that its laws and regulations relating to the right 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: I (a), XI: I and 111:2 and 4 of the GATT 1994 and that it would also implementsuch laws and regulations in full conformity with these obligations. The Working Party took
note of this commitment.
Answer:
Pending.
(d) Other duties and charges, specifying any charges for services rendered
Question 27.
The response to Question 26 of WT/ACC/MOL/9 states that Moldova plans to bind a charge of
0.25 per cent as "other charges" in its tariff schedule.
We oppose the binding of any additional charge s on imports in Moldova's tariff schedule. We
seek a commitment from Moldova in the text of  the Working Party report that confirms that
Moldova would not list any other charges in its Goods Market Access Schedule under ArticleII:l (b) of GATT 1994, binding such charges at "zero".
We would also like the statement recorded that Moldova levies no duties and charges on
imports other than ordinary customs duties and charges for services rendered, and that any
such charges applied to imports after accession  would be in accordance with WTO provisions.
Answer:
Following the results of bilateral negotiations with member countries Moldova has taken the
commitment to bind other charges at "zero" in its Goods Market Access Schedule underWT/ACC/MOL/11
Page 16
Article II:1 (b) of GATT 1994.  Moldova is also taking the commitment that charges applied to
imports after accession will be in accordance with WTO provisions.
Question 28.
Response to Question 33 in WT/ACC/MOL/9 states that Moldova established through Article
17.2 of the Budget Law 1999 a five per cent tariff surcharge on items whose statutory tariff rate
is "zero". With reference to the information on  Moldova's duty free trade for 1997 given in the
response to Question 25:
Does that mean that the five per cent surcharge applies only to  the tariff items that accounted
for about 8.6 per cent in 1997, i.e., not to imports from the CIS or Romania, or to importsexempted from duties for investment purposes or into free trade zones?
Answer:
In the text of the Article 17.2 of the Budget Law 1999 a 5 per cent surcharge applies to all
goods irrespective of their origin (with few except ions (mostly energy products) as indicated in the
answer to Question 33 in WT/ACC/MOL/9)  that means including imports from CIS and Romania and
imports exempted from duties for investment purposes.
Question 29.
Approximately how many tariff lines does this su rcharge apply to? How long will this surcharge
be in place? Does Moldova contemplate eliminating this surcharge prior to its accession to the
WTO? If not, how does Moldova expect to appl y this surcharge consistent with its goods market
access tariff binding commitments?
Answer:
This surcharge applies to approximately 700 tariff lines at four digit level. It will stay in place
until the end of 1999. Moldova applied the surcharge as a remedy for its balance-of-payment
problems in accordance with Understanding on th e Balance-of-Payments Provisions of the GATT
1994 and depending on the situation in future might be forced to use it again. In such cases Moldovawill follow strictly the procedures allowed by the Understanding on the Balance-of-Payments
Provisions of the GATT 1994, as well as Article XII of GATT 1994.
Question 30.
Re Question 27 of WT/ACC/MOL/9, please specify which charges the 2000 Budget would
introduce to customs user fees.
The response to Question 26 of WT/ACC/MOL/9 states that Moldova currently applies a
customs user fee of 0.25 per cent of the value of imported goods from all countries and intendsto replace it with a flat fee for customs clearance "in the year 2000." How will Moldova
determine that this flat fee is related to  the cost of the customs services rendered?
Answer:
The change to a flat fee will be included in the draft Law on Budget 2000 being prepared  by
the Ministry of Finance which supervises the Department of Customs Control. The necessary
calculations concerning average processing costs of  individual entry by groups of similar products are
currently underway. In addition to basic administrative expenses related to the processing of imported
or exported goods other related costs such as statistical services will be taken into consideration, asWT/ACC/MOL/11
Page 17
well as apportionment of the general costs related to improve basic customs infrastructure in order to
facilitate movements of merchandise. No other costs will be included.
Question 31.
Will revenues from this fee be used to fund expo rt processing as well as import processing? Will
there be any exemptions from this fee? When, pr ecisely, in the year 2000 will the flat customs
user fee replace the 0.25 per cent ad valorem  fee?
Answer:
The customs user fee is applied both to import and export operations and will reflect the
approximate costs for the services rendered as described in the answer to the previous question. There
are no exemptions from this fee and none are foreseen for the future.
The customs user fee is adopted through the Budget Law. Hence the flat customs user fee
replacing the previous one will be applied fr om 1 January 2000 when the new Law on Budget 2000
will come into force.
Question 32.
The response to Question 27 of WT/ACC/MOL/9 states that "the Decision of the Constitutional
Court No. l4 of 19 May 1998 and Government Decision No. 716 of 30 June 1998 introduced
certain amendments to the Decision No. 777 that abolished the import licence fee of 0.1 per cent,
as well as licensing fee of MDL 200,000 for import of alcohol or tobacco products."
What is the fee structure for such licenses now?
Answer:
Currently there are none. No fees are paid for any licenses.
Question 33.
We seek a commitment in the protocol along the following lines:
The representative of Moldova confirmed that, from the date of accession, Moldova would not
apply or reintroduce an ad valorem  customs fee. Moldova applied a flat fee for import
processing, which would be applied in conformity with WTO obligations, in particular ArticlesVIII and X of the GATT 1994. The level of the applied fee would not exceed the approximate
cost of the customs processing of imports, revenues from the fee would be used solely for
customs processing of imports and total annual revenue from collection of the fee would not
exceed the approximate cost of customs processing  operations for the items subject to the fees.
He confirmed that revenues from the fee would not be used for customs processing of exports orimports exempted from the fee, should there be  any, or for any other objective. Information
regarding the application and level of the fee, revenues collected and their use, would be
provided to WTO Members upon request. The Working Party took note of these commitments.
Answer:
Pending.WT/ACC/MOL/11
Page 18
(e) Quantitative import restrictions, including  prohibitions, quotas a nd licensing systems
Question 34.
Article 12 of the draft Foreign Trade Law appe ars to authorize, as a rule, the setting
quantitative restrictions, awarding of quotas and issuing of licenses "through holding a tender
or an auction," and that "distribution of quotas and issue of licenses are conducted by an
authorized body of public administration , with preference given to manufacturing
organizations."
Are these provisions still in the draft Law? If so, how can the auctioning of quotas, licenses and
other quantitative restrictions be compatible wi th the provisions of Articles II, XI, and XIII?
Answer:
According to Article 10 of the draft Foreign Trade Law the import and export is without any
quantitative restrictions. The Government of the Republic of Moldova can introduce the quantitativerestrictions on import and export only in the exceptional cases foreseen in the new draft law. These
exceptional cases are stipulated in Article 11 of the Foreign Trade Law and are in compliance with
Articles XX and XXI of GATT 94.
The Governmental Decisions concerning the introduction of quantitative restrictions on
import and export has to be published in the established way at least 30 days before the entry into
force of these restrictions.
In the case of establishment of any quantitative restrictions, the distribution of quotas and the
issue of licenses are effectuated by the authorized body of public administration.
Following the provisions of Article 3 of the draft Law that provides for the supremacy over
that Law of any international agreements to which the Republic of Moldova is part, the consistency
with the WTO Agreements is assured, including as regards Articles IX and XIII of GATT 1994.
Question 35.
How is preferential treatment in the distributi on of licenses compatible with the provisions of
Article III and XI?
Answer:
Article 12 of the draft Foreign Trade Law has been amended to delete all references to
preferences.
Question 36.
Article 14 of the draft Foreign Trade Law states that "The State monopoly on exports and/or
imports of certain types of goods is exercised on the basis of licensing exports and/or imports of
goods. The licenses are issued by an authorized public administrative body."
Does Moldova preserve a state monopoly in the trad e of any product, i.e., those products listed
in the draft Working Party Report as requiring import and export licenses?
Answer:
However, allows the introduction of state monopoly, currently Moldova has no state
monopoly in the trade of any product and the list of products given in the draft Working Party ReportWT/ACC/MOL/11
Page 19
as requiring import licenses does not imply any state monopoly. Moreover, there are no export
licenses at the moment.
Question 37.
Does Moldova intend to notify its state trading monopolies under Article XVII of the GATT,
and if so, how is the quantitative restriction of trade in monopolized commodities compatible
with the provisions of Article XVII and the Understanding on State Trading Enterprises
requiring the use of "commercial consideratio ns" in the sale and purchase of state traded
commodities?
Answer:
In case Moldova were to decide to introduce state trading monopolies, it would notify them
under Article XVII of the GATT 1994 and would make sure that any relevant regulations were in
conformity with WTO provisions, including those of GATT 1994 Article XVII and the Understanding
on State Trading Enterprises requiring the use of "commercial considerations" in the sale andpurchase of state traded commodities.
(f) Import licensing procedures
Product coverage
Question 38.Re Question 41 of WT/ACC/MOL/9, please describe the main features of the new regulation on
imports of alcohol and tobacco products.
Answer:
Currently there are no regulations on imports of alcohol and tobacco products and only the
activity licensing is introduced by the Law on licensing of certain types of activities.
Question 39.
The response to Question 38 of WT/ACC/MOL/9 states that Moldova has established a single
import licensing system in Government De cision No. 777, and that amendments were
introduced later through Governmental Decision 76 of 22 January 1997 and Governmental
Decision 716 of 30 June 1998.
We seek Moldova's revision of its revised response to the questionnaire in Annex 3 of
WT/ACC/1, on Import Licensing Procedures, contained in WT/ACC/MOL/8/Add.l,
incorporating the changes introduced through Governmental Decision 76 of 22 January 1997,
716 of 30 June 1998, and 859 of 13 August 1998.
Answer:
Moldova presents (together with these answers) its revised response to the questionnaire in
Annex 3 of WT/ACC/1 on Import Licensing Pr ocedures, contained in WT/ACC/MOL/8/Add.1,
incorporating the changes.
Question 40.
Re Question 49 of WT/ACC/MOL/9, please specify the time required for obtaining the import
licence.WT/ACC/MOL/11
Page 20
Answer:
Licenses are normally issued within five days from the date of application.
Question 41.
Please include information on current licensing fees  or fees for processing licensing applications,
enquiry points, time frames for response to applications and utilization of import licenses, and
information as to whether these licenses are co nsidered to be automatic or non-automatic.
Answer:
There are no fees related to the issuance or processing of licence applications. Inquiry points
are at the relevant institutions where all the relevant information can be obtained.
A licence is issued within five days after the complete set of documents have been submitted.Import licenses are valid for the period requested by the importer. The applicant can request
that the validity of the licence be extended.
The licenses are automatic.
Question 42.
Please outline Moldova's future pl ans for the use of import and export licenses in light of the
provisions of Articles 12 and 14 of the draft Foreign Trade Law.
Answer:
For the time being, Moldova has no plans to introduce any export licenses in light of the
provisions of Articles 10 and 11 of the latest draft Foreign Trade Law, as well as to expend its current
list of products for which import licence is required, according to information provided in the revised
questionnaire.
(h) Customs valuation
Question 43.
Re Question 53 of WT/ACC/MOL/9, please clarify the present state of the implementation of
the Law on Customs Tariff, and provide any legislation and/or regulations that have been
enacted in order to implement fully the provisions of the Law.
We would also appreciate Moldova's review of questions we submitted after the second
Working Party meeting on the draft Customs Tariff Law concerning customs valuation that
didn't receive response in WT/ACC/MOL/9, and responses as necessary in light of the enacted
law.
Please note that the following comments are made pursuant to our interpretation of the
translated documents. The problems with impl ementation noted in some of our technical
comments may have arisen from the document's translation. Additionally, our comments
concern the draft "Law of the Republic  of Moldova on the Customs Tariff".WT/ACC/MOL/11
Page 21
Answer:
Moldova's General comments:
We highly appreciate the efforts made by experts in reviewing our draft law on customs tariff
and for the useful comments provided.
As previously stated in document WT/ACC/MOL/9, the Law on Customs Tariff has been
enacted on 20 November 1997. Thus the comments to the concerns raised in the paragraphs below are
based on the text of enacted Law that might differ in certain cases from the draft circulated before.
The English version of the enacted Law on Customs Tariff has been submitted to the
members of the Working Party together with the document WT/ACC/MOL/9.
In order to ensure full implementation of the WTO Agreements a programme of legislative
reforms was approved by the President of the Republic of Moldova in February 1999. A draft
amendment to the Law on Customs Tariff and a draft governmental decision introducing theprovisions of the relevant Notes from the WTO Valuation Agreement have already been presented to
the relevant institutions for comments  Both documents are expected to be approved shortly by the
Government and the Parliament. They will be translated into English and submitted to the member
countries for comments.
Question 44.
Article 7: Observance of trade secrets (Article 10 of the WTO Valuation Agreement).  This
Article provides that confidential information is not released "except in cases established by
current legislation of the Republic of Mold ova". Without reviewing Moldova's current
legislation on confidential information, we are unable to provide comments on this provision.
Moldova should provide referen ces to its current legislation on confidential information.
Answer:
Instead of the previous Article 7 of the draft law, cited in the questions the final text of the
Law incorporated a clear provision in its Article 8 (4) (Rights and responsibilities of customsauthority) stipulating that "the information submitte d by declarant while declaring the value of the
imported goods is commercial secret that could be  used by customs authority only for its own purpose
and cannot be transmitted to the third parties. Customs authority is held responsible for any release of
information that constitutes commercial secret".
Question 45.
Article 8: Rights and responsibilities of a declarant (Article 11 of the WTO Valuation
Agreement).  This Article provides the declar ant can lodge a complaint against a decision of
customs "according to procedures established by the Customs Code of the Republic ofMoldova". Additionally, Moldova has establishe d judicial and administrative tribunals or
procedures in the law "On the judicial system" No. 514-XIII of 6 July 1995" and the law "On
arbitration" No. 129-XIII of 31 May 1994. Without reviewing these laws, we are unable to
provide comments on this Article.  As written Article 8 does not fully implement Article 11 of
the WTO Valuation Agreement.
Article 11 (2) and (3) of the WTO Valuation Agreement are missing and it is not clear from
Article 8 whether the importer's right of appe al to Customs is an appeal without penalty.WT/ACC/MOL/11
Page 22
Answer:
The final reading of the Article 7 (Rights and responsibilities of  declarant) of the enacted
Law provides the importers with the right of appeal according to the procedures established by the
Code of Civil Procedure which stipulates in its Chapter II the procedure to be followed while lodginga complaint in the economic courts and ordinary appeal procedure in its Chapter III, providing no
penalty for this. In addition, the Customs Code in its Chapter 16, Article 96 provides the importer the
initial right of appeal without penalty to an au thority within the customs administration or to an
independent body.
Currently, a new draft of the law amending the Law on Customs Tariff in its Article 1 (2)
and (3) introduces expressly the language for the right of appeal without penalty.
In addition the new draft of the Customs Code is in the final stage of coordination. It will
also provide for the right of appeal according to the WTO Valuation Agreement.
Moldova will in due course inform the members on the amendments foreseen and will
submit a copy of this law as soon as it is ready.
Question 46.
Article 11: Methods of calculation of customs value.  This Article provides that "Methods of
substraction and addition can be used in any su ccession". This Article should be clarified to
bring the provision in conformance with Article 4 of the WTO Valuation Agreement and the
General Notes, Sequential Application of Valuat ion Methods in Annex I of the WTO Valuation
Agreement. Namely the provision should reiterate that appraisement should proceed under
deductive value before proceeding to computed value unless the importer elects a reversal of theorder. We note that Moldova has the ability to make a reservation with regard to Article 4 as set
forth in Paragraph 3 in Annex III of the WTO Valuation Agreement.
Answer:
Article 10 (Methods of determination of the customs value of the goods) provides for
sequential application of valuation methods and stipulates that the deductive and computed valuemethods could be applied in a reversal of the order at the request of the importer.
However, Moldova took into consideration these comments and included some provisions in
the draft Governmental Decision "On Regulation on Application of Provisions of the Law on Customs
Tariff", reiterating the provisions of General Note s, Sequential Application of Valuation Methods in
Annex I of the WTO Valuation Agreement.
In addition, Moldova will in due course inform the member countries whether it will make a
reservation to Article 4 as set forth in Paragraph 3 in Annex III of the WTO Valuation Agreement.
Question 47.
Article 12: Method of customs valuation at the price of a transaction with imported goods
(Article 1 and 8 of the WTO Valuation Agreement).  We note that Moldova has not specifically
provided for "the cost of insurance" set forth in Article 8 (2) (c) of the WTO ValuationAgreement in Article 12 (l) (a).  This Article does not implement apportionment of "goods and
services" of Article 8 (1) (b) of the WTO Valuat ion Agreement. Additionally, the Interpretative
Notes to Article 8, Paragraph 1 (b) (ii) in Annex I of the WTO Valuation Agreement are not
fully implemented concerning "goods and services".WT/ACC/MOL/11
Page 23
There is no implementation of Article 8 (4) of the WTO Valuation Agreement concerning no
other additions other than those provided for are to be included in the price actually paid or
payable.
With regard to related parties, Article 12 (2) (d) states that fact that the price did not influence
the parties relationship" … should be confirme d by the declarant ….". This Article does not
conform to Interpretative Note to Article 1, Paragraph 2 (2) in Annex I of the WTO Valuation
Agreement which states that " it is not intended that there should be an examination of the
circumstances in all cases where the buyer and the seller are related. Such examination will only
be required where there are doubt s about the acceptability of th e price.  Where the customs
administration have no doubts about the acceptabili ty of the price, it should be accepted without
requesting further information form the importer …" Moldova should modify Article 12 (2) (d)to conform to the Interpretative Note to Article 1, Paragraph 2 (2) in Annex I of the WTO
Valuation Agreement.
Additionally, Moldova fails to fully implement the related parties provisions of Article 1 (2) (a),
(b) and (c) of the WTO Valuation Agreement and the Interpretative Notes to Article 1,Paragraph 2 and 2 (b) in Annex I of the WTO Valuation Agreement.
Answer:
Article 11 (Method of customs valuation at the price of a transaction with imported goods)
of the enacted Law includes, as well, "the cost of insurance" set forth in Article 8 (2) (c) of the WTO
Valuation Agreement.
Article 11 (c) provides for the apportionment of "goods and services" of Article 8 (1) (b) of
the WTO Valuation Agreement. In addition the new draft of the governmental decision implementing
the Interpretative Notes (including Article 8, Paragraph 1 (b) (ii)) in Annex I of the WTO Valuation
Agreement will shortly be submitted to Government for approval.
With regard to the implementation of Article 8 (4) of the WTO Valuation Agreement
concerning no other additions other than those provided for are to be included in the price actually
paid or payable, the draft law, mentioned above, amending the current Law on Customs Tariff will
implement this issue.
Both drafts mentioned above, draft law on amendments to the current Law on Customs
Tariff and  draft governmental decision have been elaborated to fully implement WTO Valuation
Agreement. The provisions implementing Article 1 (2) (a), (b) and (c), as well as Interpretative Notes
to Article 1, Paragraph 2 and 2 (b) in Annex I of the WTO Valuation Agreement are included in thenew drafts.
Question 48.
Article 13: Method of customs valuation at the price of a transaction with identical goods
(Article 2 of the WTO Valuation Agreement).  We note that Article 13 (3) should read "…
expenses listed in Article 12 (l) (a)  … " not "Article 17."
Answer:
The final text of the Law has such a reference in Article 14 (4), although the provision of
Article 2 of the WTO Customs Valuation Agreement is not totally contained. The new draft law
amending the Law on Customs Tariff will fully implement Article 2 of the WTO Customs Valuation
Agreement.WT/ACC/MOL/11
Page 24
Question 49.
Article 14: Method of customs valuation at the price of a transaction with analogous goods
(Article 3 of the WTO Valuation Agreement).  We note that Article 14 (2) and (3) should read "
… Article 13 … " not "Article 18".
Answer:
The text of the enacted Law contains correct references.
Question 50.
Article 15: Method of customs valuation throug h value substraction (Article 5 of the WTO
Valuation Agreement).  In Article 15 (1), Mold ova provides that this method "…is applied in
cases where the goods identical or analogous to those under valuation … " It is not clear if
Moldova is applying this method to "the im ported goods or identical or similar imported
goods" as set forth in Article 5 of the WTO Valu ation Agreement. Article 15 (1) should conform
to the language in Article 5 (1) (a) of the WTO Valuation Agreement.
With regard to the determination of unit prices, Moldova uses the term "largest consignment"
for "greatest aggregate quantity" as set forth in Article 5 (1) (a) of the WTO Valuation
Agreement. "Largest Consignment" should be defi ned according to the definition of "greatest
aggregate quantity" as set forth in the Interpretative Note to Article 5, Annex I of the WTO
Valuation Agreement.
Additionally, Moldova does not separately provide for the use of this method " at or about the
time of the importation of the goods being va lued" and "at the earliest date after the
importation of the goods being valued but befo re the expiration of ninety days after such
importation". Article 5 (1) (a) and (1) (b) of  the WTO Valuation Agreement. Moldova combine
these two provisions into Article 15 (2) by providi ng for "no later than 90 days after the date of
entrance of the goods to be valued".
With regard to the deductions to be made under deductive value, Article 5 (1) (a) (i) of the WTO
Valuation Agreement is not properly implemented. Article 15 (3) (a) states that " expenses ofpaying commission, and usual rise in profit and overheads …" Moldova fails to provide for the
terms " either … or" in "either the commissions usually paid of agreed to be paid or the
additions usually made for profit and general expenses … (emphasis added)" of Article 5 (1) (a)
(iv) of the WTO Valuation Agreement.
Answer:
With regard to the language in Article 15 of the enacted Law, it is mainly translation
subtleties that changed the meaning of the phrase.  However, Moldovan experts involved in the
elaboration of the new amendments introduced re levant changes to the wording of the Article to
address the precise meaning of the Article 5 (1) (a) of the WTO Customs Valuation Agreement.
The meaning could seem different due to the translation, although the text of Article 15 (2)
of the Law corresponds to the meaning of Article 5 of the WTO Valuation Agreement. Concerning
the implementation of the Interpretative Note to Article 5, Annex I of the WTO Customs ValuationAgreement, as it was mentioned before, a new draft governmental decision addresses this issue.
To fully implement the provisions of Article 5 (1) (a) and (1) (b) of the WTO Customs
Valuation Agreement new draft law and governmental decision included all relevant provisions.WT/ACC/MOL/11
Page 25
With regard to the deductions to be made under deductive value, appropriate amendments
are introduced in the new drafts to fully implement the provisions of Article 5 (1) (a) (i) (iv) of the
WTO Customs Valuation Agreement.
Question 51.
Article 16: Method of customs valuation throug h addition of value (Article 6 of the WTO
Customs Valuation Agreement)
Article 6 (1) of the WTO Customs Valuation Ag reement provides for the addition of " an
amount for profit and general expenses equal to that usually reflected .." Moldova has
separated profit form expenses its provisions. Article 16 (b) and (c). This is incorrect.Interpretative Note to Article 6 (5) in Annex I of the WTO Valuation Agreement states that "
profit and general expenses are to be taken as a whole". Article 16 (b) and (c) should be
modified to reflect the components of comput ed value in Article 6 of the WTO Valuation
Agreement.
The Interpretative Notes to Article 6 in A nnex I of the WTO Valuation Agreement are not
implemented.
Additionally, Article 6 (2) of the WTO Valuation Agreement is not implemented.
Answer:
The text of the Law corresponds to the provisions of Article 6 (1) of the WTO Customs
Valuation Agreement and possible translation er rors modified the meaning of the provisions.
However, Moldova recognizes that additional ame ndments are necessary to ensure full compliance
with the wording of Article 6 and its Interpretativ e Note in Annex I of the WTO Customs Valuation
Agreement. Both issues are incorporated in the new drafts.
Question 52.
Article 17, Reserve method of establishing the customs value (Article 7 of the WTO Valuation
Agreement).  This Article stated “ … the customs value of goods should be established in
accordance  with world practice”. The term “world practice” needs to be defined? How ismerchandise appraised pursuant to this section? To this term consistent :with the language in
Article 7 of the WTO Valuation Agreement which states” … the custom value shall be
determined using reasonable … consistent with the principles and general provisions of this
Agreement: and of Article VII of the GATT 1994 and on the basis of data available in the
country of importation.” The term “world practice ” should be consistent with the principles set
forth in Article 7 of the WTO Valuation Agreement.
Answer:
The language of the enacted Law is different from the language contained in the previous
draft. Article 17 of the Law on Customs Tariff includes the provisions of Article 7 of the WTO
Customs Valuation Agreement. In addition Article 30 of the Law on Customs Tariff states that “in the
case the Republic of Moldova is a Part of international agreement that stipulates another norms that
those provided by the present law, it should apply the norms of the international agreement ”.
The new draft governmental decision included the language of interpretative note to
Article 7 of the WTO Customs Valuation Agreement.WT/ACC/MOL/11
Page 26
Question 53.
Article 7 (3) of the WTO Valuation Agreement concerning informing the importer should be
modified  to reflect that Custom’s response to the importer should be in written form.
Answer:
The final text of the Law implements this requirement in its Article 8 (6).
Question 54.
Moldova does not link all the negative appraise ment methods listed in Article 7 of the WTO
Valuation Agreement. Specifically missing are Article 7 (2) (b), (4) and (f) of the WTO
Valuation Agreement.
Answer:
The Article 17 (3) provides all notions of Article 7(2), including Article 7 (2)(b), (d) and (f).
The item (b) corresponds with 3 (d) of Article 17, (d) corresponds with 3 (e) of the same Article and
item (f) corresponds with 3 (g).
Question 55.
Moldova should be questioned whether it ha s minimum pricing and/or reference in use ?
Answer:
Moldova applies reference prices introduced by Governmental Decision No. 1092 of
29 October 1998.
Question 56.
Currency Conversion (Article 9 of the WTO Valu ation Agreement).  Moldova states that the
conversion to national currency to establish th e customs value of goods in based on the exchange
date established and published by the National Bank of the Republic of Moldova.
WT/ACC/MOL2, 3 and 5 23 September 1996-1997 October 1997. Where or how are these rates
published by the National Bank of the Republic of Moldova?
Does Moldova convert currency at the time of import, or at the time of export? Article 9 (2) of
the WTO Valuation Agreement  provides “the conversion rate to be used shall be that in effect
at the time of exportation or the time of importation, as provided by each Member (emphasis
added)”.
Answer:
Moldova converts currency at the time of import. The National Bank of Moldova is required
to coordinate with the Government and Parliament in respect of monetary and foreign exchange
policy and to provide the Government, Parliament and the public with periodic reports on the
implementation of such policy, including the provision of information in respect of monetary supplycredit expansion, balance of payments and foreign exchange.
The Moldovan Leu is a convertible currency for all current account transactions, under the
criteria of Article 8 of the Articles of Agreement of the International Monetary Found. The National
Bank of the Republic of Moldova sets the daily exchange rate with reference  to an interbank market.WT/ACC/MOL/11
Page 27
This rates are daily reported in news agencies and published in the periodical press, as well
as in Internet (http:  www.bnm.org/) .
Question 57.
Transparency (Article 12 of the WTO Valuation Agreement).  We note that Moldova’s national
laws are published in “Monitorul Oficial”. What other law or regulation are in effect to
implement Article 12 of the WTO Valuation Agreement concerning publication of Moldova’s
regulations, judicial decisions and administrative ruling of general application?
Answer:
Based on the Governmental Decision No. 1104 of 28 November 1997 all laws, governmental
decisions and other legal documents enter into force only after their publication. According to the
legislation of the Republic of Moldova, all normative acts, laws and other, generally application
decisions come into force only after publication in the official newspaper “Monitorul Oficial”. After
this procedure other newspapers can publish these documents.
Question 58.
Article 14 of the WTO Valuation Agreement.  Moldova has failed to implement fully this
Interpretative Notes set forth in Annex 1 of the WTO Valuation Agreement. Specific referenceto various Interpretative Notes are … above. A dditionally, the following Interpretative Notes
are not fully implemented:
- Interpretative Notes, Use of Generally Accepted Accounting Principles;
- Note to Article 1, Price Actually Paid or Payable;
- Note to Article 1, Paragraph 1 (a) (iii);
- Note to Article 1, Paragraph 1 (b);
- Note to Article 8, Paragraph 1 (a) (i);
- Note to Article 8, Paragraph 1 (b) (iv);
- Note to Article 8, Paragraph 1 (c);
- Note to Article 8, Paragraph 3;
- Note to Article 2;
- Note to Article 3;
- Note to Article 5;
- Note to Article 6;
- Note to Article 7; and
- Note to Article 15, Paragraph 4 (e).
Answer:
According the Article 14 of the Agreement on Custom’s Valuation the Republic of Moldova
elaborated the draft Governmental Decision im plementing the Interpretative Notes set forth in
Annex I of the WTO Valuation Agreement.
Question 59.
Article 15 of the WTO Valuation Agreement.  We did not find the definitions of the terms
“produced” and “goods of the same class or kind” as  set forth in Article 15 (1) (c) and (3) of the
WTO Valuation Agreement.WT/ACC/MOL/11
Page 28
Answer:
Both drafts, amending the Law on Customs Tariff and draft Governmental Decision, address
this concern.
Question 60.
Is the Article 15 (5) of the WTO Customs Valuation Agreement concerning sole agent, sole
distributor or sole concessionaire implemented in law or regulation? If so, please state where.
Answer:
The provisions of Article 15 (5) are stipulated  in the present law in the Article 11 (2) (d).
Question 61.
Article 16 of the WTO Valuation Agreement.  We note that Article 9 provides that at the
written request of the declarant, customs must provide a “…written statement explaining the
reasons why the customs value declared by the declarant … be accepted by the customs as a
basis to calculate duties.” This Article does not fully implement Article 16 of the WTO
Valuation Agreement which provides that “upon written request, the importer shall have the
right to an expansion in writing from the custom s administration of the country of importation
as to new customs value of his imported goods was determined (emphasis added).” Moldova
should modify Article 9 to reflect the language  in Article 16 of the WTO Valuation Agreement.
Answer:
The provisions of Article 16 (WTO Customs Valuation Agreement) are provided in Article
8 (5,6) of the current Law.
Question 62.
We have reviewed the Law on the Customs Tariff  provided by Moldova for circulation to the
Working Party.  With respect to Articles 1 through 8 of the WTO Customs ValuationAgreement, the basic provisions appear to be co vered. We have a few comments that may relate
to translation differences, rather than substantiv e conflicts with the Agreement. We will submit
these comments separately in writing for explanation.
We would also appreciate clarification of the right of appeal within the Customs department
and a legal citation on right of appeal to an independent tribunal, e.g., the economic courts.
Answer:
As stated in the reply to Question 7 a general provision on the right of appeal both within the
Customs Department and to an independent tribunal is stipulated by the Law on Petitioning
No. 190 XIII of 19 July 1994 with following amendm ents introduced by the Law No. 18 - XIII of
14 May 1998. The reply to Question 7 also gives clarification as to when appeals are brought to the
courts of first instance or to the economic courts.
The draft amendments to the Law on Customs Tariff stipulates expressly the right of appeal
without penalty, as stipulated in Article 11 of the Customs Valuation Agreement.
Article 1 (2) of the draft amendment provides for right of appeal without penalty to a judicial
authority.WT/ACC/MOL/11
Page 29
Article 1 (3) of the draft amendment containing this provision states "Article 8 of the Law on
Customs Tariff will be changed in the following wa y, after the words "offering him the possibility of
appeal" the words "without penalty" shall be added".
The English version of the amendments will be sent shortly after these answers.In addition, the new draft of Customs Code that has been recently elaborated provides as well
for the right of appeal. General provision for such right is given by Article 388. Article 389 provides
for two ways of appealing: administrative and judi cial. Section 55 (Articles 390 through 398) of the
Code provides the detailed procedure for an ad ministrative appeal and Section 56 (Articles 399 and
400) of the Code provides details on procedures for a judicial appeal. This draft Customs Code is
expected to be enacted before the end of 1999.  The English version of the draft Customs Code will beprovided later.
Question 63.
In its responses to Questions 56-58 of WT/ACC/MOL/9, Moldova stated that "amendments" to
the Customs Tariff Law were under preparation by the Ministry of Finance, which would fully
implement the following provisions of the Customs Valuation Agreement:
- the assists/goods and services of the Interpretive Notes to Article 8;
- the related party provisions in Article I and the Interpretive Notes to Article I,
Paragraph 2 and 2(b);
- Article 8(4) of the Agreement concerning no other additions other than those
provided for are to be included in the price actually paid or payable.
Has Moldova prepared additional amendments to  the Customs Tariff Law to address these
issues. If so, please provide the text. If not, please indicate when this will be done.
Answer:
As stated in the replies to Questions 56- 58 of WT/ACC/MOL/9, Moldova has prepared in
addition to the draft amendments to the Law on Customs Tariff, draft Governmental Decision "On
Implementation of the Law on Customs Tariff" that mo stly implements the interpretative notes of the
Customs Valuation Agreement.
This draft Governmental Decision includes the provisions of Interpretative Notes to Article 8,
as well as related party provisions in Article I and the Interpretative Notes to Article I, Paragraph 2
and 2 (b). In the draft Governmental Decision both issues are part of Note to Article 11 of the Law onCustoms Tariff.
Provisions of Article 8(4) of the Customs Va luation Agreement concerning no other additions
other than those provided for are to be included in the price actually paid or payable, are stipulated in
the draft Law on amendments to the Law on Customs Tariff, as amendments to Article 11 (1) (f) ofthe Law on Customs Tariff.
The English versions of both drafts (draft Law on amendments to the Law on Customs Tariff
and draft Governmental Decision  "On implementation of the Law on Customs Tariff") will be
provided shortly after these answers.
Question 64.
The responses to Questions 63-64 state that Mold ova will address the need to implement Article
15(5) of the Agreement concerning sole agent, sole distributor, or sole concessionaire and theInterpretive Notes in Annex 1 of the Agreement in further amendments to its law andWT/ACC/MOL/11
Page 30
regulations. Article 14 of the Agreement stipulates  that the Interpretive notes of the Agreement
form an integral part of it and that the Articl es of the Agreement are to be read in conjunction
with these Notes.
Has Moldova prepared additional amendments to  the Customs Tariff Law to address these
issues. If so, please provide the text. If not, please indicate when this will be done.
We seek confirmation from Moldova that it also intends to address in these amendments to its
customs valuation law the WTO provisions on the Treatment of Interest Charges in Customs
Value of Imported Goods and for the Valuation of Carrier Media Bearing Software for Data
Processing Equipment. We seek, in accordance with  these latter provisions, that only the cost of
the carrier medium itself would be accounted for in the customs value.
Moldova has stated on several occasions its inte ntion of bringing its customs valuation regime
into line with the WTO Customs Valuation Agreem ent, and we commend its efforts to date in
this regard. In order to conclude our review, we seek comment on these additional points.
We suggest the following confir mation of Moldova's intent:
The representative of Moldova confirmed that, from the date of accession, Moldova would
apply fully the WTO provisions concerning custom s valuation, including in addition to the
Agreement on the Implementation of Article VII of the GATT 1994, the provisions on theTreatment of Interest Charges in Customs Valu e of Imported Goods and for the Valuation of
Carrier Media Bearing Software for Data Proc essing Equipment. In accordance with these
latter provisions, only the cost of the carrier medium itself would be accounted for in the
customs value. He added that, as an internat ional agreement, the provisions of the WTO
Agreement on the Implementation of Article VII of the GATT 1994 would supersede domesticlaw upon accession. The Working Party took note of these commitments.
Answer:
The draft Law on amendments to the Law on Customs Tariff in its Article 4 (c) will
implement the provision of Article 15(5) of the Agreement concerning sole agent, sole distributor, or
sole concessionaire. As stated in the reply to the previous question all interpretative notes, includingthat referring to Article 15 of the Valuation Ag reement, are covered in the draft Governmental
Decision "On implementation of the Law on Customs Tariff".
The WTO provisions on the Treatment of Interest Charges in Customs Value of Imported
Goods and for the Valuation of Carrier Media Bearing Software for Data Processing Equipment are aswell part of the draft Governmental Decision "On implementation of the Law on Customs Tariff".
This draft Governmental Decision provides that only  the cost of the carrier medium itself should be
accounted for in the customs value.
(j) Pre-shipment inspection
Question 65.
Re Question 69 of WT/ACC/MOL/9: Has the Government of Moldova completed the
examination of the possible use of a PSI company ?
Answer:
Currently a draft Governmental Decision providing for the introduction of pre-shipment
inspection is in its final stage of coordination with the relevant governmental institutions. This draftgovernmental decision provides for a tender to select a PSI company and criteria for their evaluation.WT/ACC/MOL/11
Page 31
A copy of this draft governmental decision will be translated and submitted to the member countries'
consideration.
(k) Application of internal taxes on imports
Question 66.
Re Question 70 of WT/ACC/MOL/9, please confirm that excise taxes and VAT taxes have been
brought into full WTO conformity.
Answer:
Moldova confirms that VAT application has been brought into full WTO conformity.
Concerning the application of excise taxes Moldova signed bilateral agreements with Belarus,
Kazakstan, Uzbekistan and Armenia, that provided for the implementation of destination principle for
excise taxes as well. Starting with the Law on Budget 2000 the application of excise taxes will be
brought fully into conformity with WTO provisions with all the countries.
Value Added Tax
Question 67.
The draft Working Party Report states that Moldova exempts the sale of products from crop
farming and animal husbandry in unprocessed form and on a live-weight basis from VAT
taxation.
Does this exemption extend to imports of similar products, as provided for in Article III of the
GATT. If not, will Moldova bring this into line with WTO provisions?
According to the response to a question of WT/ACC/MOL/9, the 1999 draft Budget Law has
completed the work of bringing Moldova’s VAT into conformity with the relevant WTO
provisions.
Answer:
The exemption from VAT of products from crop farming and animal husbandry in
unprocessed form and on a live-weight basis does not extend to imports of similar products.
Unfortunately the final text of the Law on Budget 1999 provides for the same exemption in
Article 26 (e). This practice will be discontinue d with the new Budget Law starting 1 January 2000.
Excise taxes
We have reviewed the List of excisable products from the 1999 Budget Law in the draft
Working Party report. It is encouraging the Mo ldova has unified its rate structure to ensure
that there is no overt discrimination against imports. We note, however, that there are
distinctions in the rates of application of some of  the excise taxes that raise additional questions.
We would appreciate Moldova's assistance in clarifying these issues.
Re Question 73 of WT/ACC/MOL/9, please explain the reasons for the adoption of the
categories you have given in your excise duty table for the following products: wine, other
liqueurs, cigarettes.
Please confirm that the categories you have created do not discriminate against foreign
products under Art III of GATT 1994.WT/ACC/MOL/11
Page 32
Question 68.
The excise tax rate for vodka and liqueurs is 50 per cent higher than the rate applied to other
liquors, including national drinks. Could Moldova indicate which national drinks are taxed at
the lower rate and explain why? Could Moldova indicate why Vodka and liqueurs are taxed at
the higher rate?
Answer:
The final text of the Annex 9 of the Law on Budget 1999 has two different headings: one
includes only vodka (excise tax is MDL 2.00 per bottle of 0.5 litres) and other includes liqueurs,
strong alcoholic beverages, including national drinks (excise tax is MDL 0.75 per bottle of 0.5 litre).
Different excise taxes do not mean to discriminate against imports. There is a large
production of vodka in Moldova as well. Under the heading of liqueurs, national brandies are
included. Following the different technological processes and different production costs for vodka
(lower production costs) and for brandy and taking into consideration the larger consumption ofvodka it was decided for fiscal reasons to fix a higher excise rate for it. Other liqueurs are taxed at the
same rate as national drinks.
Question 69.
The excise tax rate for "natural, carbonated" carbonated grape wines is 50 per cent higher than
the excise rate applied to "traditional" carb onated grape wines. Could Moldova indicate if
"traditional" carbonated grape wines include substantially all domestic production of such
beverages and if "natural, carbonated" carbonat ed grape wines include most imports? Could
Moldova indicate why "traditional" carbonated grape wines are taxed at a lower excise rate
than "natural, carbonated" wines?
Answer:
Annex 9 (List of excisable goods) of the Law on Budget 1999 provides for the 50 per cent
higher rate on "traditional" carbonated grape wines made according to the classic technology than on
"natural, carbonated" carbonated grape wines as indicated in the document WT/ACC/MOL/9. Thetechnological process for the "natural, carbonated" is cheaper and Moldova produces a large quantity
of both types of carbonated grape wines. There is no discrimination built in this excise rate structure
and, unlike the case for vodka, a higher excise tax was established on higher quality carbonated wine
(produced according to traditional method) for the same fiscal reason, this product is being considered
as a luxury product with a higher value added.
Question 70.
Does "Divin" include imported brandies and cognacs made from grapes? Made from other
fruits? If not, where are these beverages classified for the purpose of excise taxation?
Answer:
For the purpose of excise taxation under the heading "Divin" imported cognacs made from
grapes are included. Imported brandies made form grapes and from other fruits are included under theheading of liqueurs, strong alcoholic beverages, including national drinks.
Question 71.
Can Moldova indicate the unit of fluid measure upon which the excise tax of MDL 0.5 is applied
to kegged beer? Can Moldova indicate the unit of fluid measure upon which the excise tax ofWT/ACC/MOL/11
Page 33
MDL 1.0 is applied to bottled or canned beer? On what basis is beer in one form of packaging
taxed at a higher rate than beer sold in another? What portion of Moldova’s beer imports is in
kegs? What portion of its domestic production is sold in kegs? What portion of Moldova’s beer
imports occurs in bottles or cans?
Answer:
The unit of fluid measure of one litre is applied to both kegged, bottled or canned beer.
According to Moldova's statistics the major part of its beer imports come in bottles. Imported beer in
kegs accounts for 45 per cent. At the same time, domestic beer sold in kegs accounts for 18 per cent,
the major part being sold in bottles (82 per cent). The same fiscal reason is applied in fixing the excise
tax higher for higher value.
Question 72.
Why are the excise taxes on filter cigarettes twice to five times the tax rate applied to unfiltered
cigarettes? Why are cigarettes of length greater than 81 mm taxed at more than twice the excise
rate applied to shorter cigarettes? What portion of Moldova's domestic cigarette production is
(a) filtered, (b) unfiltered, (c) of cigarettes of le ngth below 81 mm? What portion of imports of
cigarettes are (a) filtered, (b) unfiltered, (c) of cigarettes of length below 81 mm?
Answer:
The higher value for filtered cigarettes is determined on the basis that a higher excise rate for
them will bring more revenue to the budget. Approximately 30 per cent of Moldova's domestic
production is unfiltered. To avoid discrimination in taxation, a draft of amendment to the Law on
Budget 1999 has been presented to the Government. This new draft includes HS codes that willreplace the current system of discriminating between cigarettes of different lengths.
Over the last few years Moldova faced serious problems with imports of cigarettes that came
almost entirely as contraband (for example the registered imports in 1998 accounts for just
US$263,000).  Therefore the last efforts of the Government have been focused on lowering the tax
burden on cigarettes imports, including lowering of import duty to the extent it will cut smuggling. As
a result there is a lack of reliable statistics on import of cigarettes that makes it impossible to present adetailed split-up of the imported cigarettes.
Question 73.
Why is ground coffee and instant coffee, by weight, taxed at a rate 25 per cent higher than
coffee grains? Does Moldova produce coffee beans?
Answer:
Moldova does not produce or process coffee beans. The only reason for setting a higher rate
for ground coffee and instant coffee is the fact that these items are mostly imported and consumed
that allows increase to the revenue for the budget.
Question 74.
How is "Top class home furniture" distinguis hed from other furniture for the purposes of
excise taxation?WT/ACC/MOL/11
Page 34
Answer:
Government Decision No. 1265 of 24 December 1998 "On the list of goods (office furniture
and top class home furniture) subject to excise taxes and their technical parameters" established the
criteria for distinguishing the excised products.
Question 75.
Please explain the reasons for exempting componen ts used in the manufacture of jewelry which
are imported by the  "Giuvaer y" factory in Chisinau from excise tax. (page 30)
Answer:
This exemption was introduced for the "Giuvaer" factory being the only producer of these
goods. This provision will be taken out from the next Law on Budget.
Question 76.
We believe that, to some extent, Moldova's revised excise tax regime remains inconsistent with
Article III of the GATT, in lin e with recent rulings by WTO dispute settlement panels on
taxation of alcoholic beverages. We would app reciate Moldova's cooperation in clarifying the
issues raised and, as necessary, proposing remedi es that will redress defici encies in the current
system vis-a-vis Article III.
Answer:
As explained in the previous answers Moldova believes that its excise tax regime mostly
corresponds to the provisions of Article III of the GATT 1996. As mentioned above, the Government
has already taken action as regards cigarettes. Moldova appreciates Members support in clarifying as
necessary any remaining issues that may be raised in line with the recent rulings by WTO dispute
settlement and is ready to cooperate to bring its tax regime in line with the WTO provisions.
(l) Rules of origin
Question 77.
Moldova has stated that its rules of origin for preferential trade are included in the Agreements
establishing the preferential arrangement. It also has stated that a valid, official certificate of
origin was considered "proof" of origin.
Does Moldovan law provide for determination of origin through the application of independent
criteria to imports claiming preferential tariff treatment that are not accompanied by such
certificates, i.e., criteria such as substantial transformation indicated by change of tariff
category or origin indicated by some fixed p ercentage of import value created within the
preferential system?
Answer:
The Law on Customs Tariff provides in Chapter V the rules of determining the origin of
goods. Article 21 of the Law sets the criteria for determining the origin by substantial transformation
indicated by change of tariff category or origin indicated by fixed percentage of import value created.WT/ACC/MOL/11
Page 35
Question 78.
Do the rules of origin laid out in the Customs Tariff Law incorporate, for both non-preferential
and preferential rules of origin, the requirements of Article 2(h) and Annex II, paragraph 3(d)
respectively, which require provision upon request of an assessment of the origin of the importand outline the terms under which it will be provided? If not, will Moldova enact such
requirements in regulation or law prior to accession?
We propose that Moldova confirm that following:The representative of Moldova stated that  the Customs Tariff Law of November 1997
established Moldova's rules of origin, and he confirmed that from the date of accessionMoldova’s preferential and non-preferential rule s of origin would comply fully with the WTO
Agreement on Rules of Origin, and that the requirements of Article 2(h) and Annex II,
paragraph 3(d) of the Agreement, which require provision upon request of an assessment of the
origin of the import and outline the terms under which it will be provided, would be established
in Moldova's legal framework prior to accession. The Working Party took note of thiscommitment.
Answer:
The provisions of the Law on Customs Tariff refer to both preferential and non-preferential
rules of origin. The requirements of Article 2(h) and Annex II, paragraph 3(d), which require
provision upon request of an assessment of the origin of the import and outline the terms under which
it will be provided will be introduced by Moldova in its legislation prior to accession.
Moldova agrees to the language suggested to be introduced in its Working Party Report.
(m) Anti-Dumping regime
(n) Countervailing duty regime
(o) Safeguard regime
Question 79.
Re Question 74 of WT/ACC/MOL/9, please confirm that the draft Law on Anti-dumping,
countervailing duties and Safeguard Measures has been approved by the Government and
Parliament.
Answer:
The draft law has been submitted to the Government and is expected to be approved shortly.
Question 80.
The response to Question 34 in WT/ACC/MOL/9 states that no safeguard measures have been
taken under Article 15 of the Law on Foreign Economic Activity, and that a new draft law has
been prepared that addresses antidumping, countervailing duty and safeguard actions.
The provisions of Article 15 are not WTO-consistent. Moldova should eliminate the parallel
provisions on safeguard measures in Article 15 of the Foreign Trade Law prior to its accession
to the WTO.
We seek confirmation in the Working Party Repo rt and protocol of Moldova's intent not to use
such measures prior to establishment of WTO consistent legal provisions, as follows:WT/ACC/MOL/11
Page 36
The representative of Moldova confirmed that Moldova would not apply any anti-dumping,
countervailing or safeguard measure until it had notified and implemented appropriate laws in
conformity with the provisions of the WTO Agree ments on the Implementation of Article VI, on
Subsidies and Countervailing Measures, and on Sa feguards. In this regard, the provisions of
Article 15 of the Foreign Trade Law would not be  applied after Moldova's accession. In the
elaboration of any legislation concerning such  anti-dumping, countervailing and safeguard
measures Moldova would ensure their full conformity with the relevant WTO provisions,
including Article VI and XIX of the GATT 1994 and the Agreements on the Implementation of
Article VI, the Agreement on Subsidies and Countervailing Measures and the Agreement on
Safeguards. After such legislation was implemented, Moldova would also apply any anti-
dumping duties, countervailing duties and safeguard measures in full conformity with the
relevant WTO provisions. The Working Pa rty took note of these commitments.
Answer:
The latest draft of the Law on Foreign Trade Regime does not contain such a provision.
Moldova will submit its draft legislation on anti-dumping, subsidies and countervailing measures andsafeguards prior to accession. Moldova agrees to the suggested language to be included in the
Working Party report.
2. Export Regulation
Question 81.
Please confirm whether Moldova applies an export-processing fee on exports. Please confirm
that there are no export licensing requirements and no export duties, at this time.
If an export processing fee is applied, please describe how it is applied and at what level.
Answer:
Moldova confirms that it does not apply any export-processing fee on exports, export
licensing requirements  or export duties. In the elaboration of any legislation concerning export
regulations Moldova would ensure their full conformity with the relevant WTO provisions of theGATT 1994. After such legislation will be implem ented, Moldova would also apply any measures
regarding export regulations in full conformity with the relevant WTO provisions.
(f) Export financing, subsidy and promotion policies
Question 82.
In light of Moldova's statements on the issue of export subsidies, we propose the following:
The representative of Moldova stated that fr om the date of accession Moldova would not
maintain any subsidies, including export subsidies, which met a definition of a prohibited
subsidy within the meaning of Article 3 of the Agreement on Subsidies and Countervailing
Measures, and would not introduce such prohibited subsidies from the day of accession. The
Working Party took note of this commitment.
Answer:
Moldova agrees to the proposed statement to be included in the Working Party report.WT/ACC/MOL/11
Page 37
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies
Question 83.
Moldova has stated that it does not at pres ent provide any subsidies prohibited by WTO
Agreements.
Can Moldova confirm that any subsidy progr ammes provided by its Government after
accession will be administered in line with  the Agreement on Subsidies and Countervailing
Measures and that all necessary information on noticeable programmes would be notified to theCommittee on Subsidies and Countervailing Measures in accordance with Article 25 of the
Agreement upon entry into force of Moldova's Protocol of Accession?
Answer:
Moldova confirms that any subsidy programmes provided by its Government after accession
will be administered in line with the Agreement on Subsidies and Countervailing Measures and that
all necessary information on noticeable programmes would be notified to the Committee on Subsidies
and Countervailing Measures in accordance with Article 25 of the Agreement upon entry into force of
Moldova's Protocol of Accession.
(b) Technical regulations and standards, including measures taken at the border with respect to
imports (Annex 5 refers)
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 84.
Please provide the Working Party with a detailed schedule outlining the steps which have been
taken with the effect of making Moldovan tech nical standards fully compatible with the TBT
Agreement to date, and the time table for future reforms.
We appreciate Moldova's clearly stated intent to implement both the TBT and SPS agreements.
Moldova is expected, however, to demonstrate the capacity to appropriately implement both
agreements in a timely fashion. Could Moldova describe the steps it has taken since the last
working party to insure a timely implementation of the agreements?
For example, can Moldova describe domestic regulatory activity implemented since March 1998
that shows its conformity with the SPS and TBT Agreements?
Answer:
According to the programme of measures approved by the President of the Republic of
Moldova in order to implement the necessary regula tory reform, Department of Standards, Metrology
and Technical Supervision of the Republic of Moldova elaborated a number of laws introducing the
basic principles of the TBT Agreement.
Since March 1998, in order to comply with WTO provisions, the Government of Moldova has
taken measures to introduce the above mentioned legislation that is currently at different stages of
approval. Newly prepared legislation introduced the fo llowing provisions in or der to comply with the
TBT Agreement:
- concept of technical regulations and transfer of mandatory standards into the category
of technical regulations;WT/ACC/MOL/11
Page 38
- the avoidance of unnecessary obstacles to international trade;
- the non-discrimination and national treatment;
- harmonization and participation in international standardizing bodies;
- equivalence of technical regulations;
- mutual recognition of conformity assessment procedures;
- transparency: statement on the implementation and administration of the Agreement,
inquiry point and notification, the publication used to announce that work is
proceeding on draft technical regulation or standards and procedures for assessment
of conformity or the text of approved documents are published in.
Table: Stage of implementation of Moldova's legislation related to TBT
No. Draft laws and regulationsCirculation of the
final draft for
commentsAt
Government
forapprovalAt
Parliament
for approval
1. Law on Certification on Goods and
ServicesXX X
2. Amendment Law on Standardization X X
3. Amendments to Law on Protection of
Consumers' RightsXX
4. Law on Technical Barriers to Trade X X
5. Law on Accreditation X
6. Law on Industrial Security X
7. Amendments to the Statute of
Phytosanitary InspectorateX
Note: Normally, the expected length of time for presentation of comments on draft legislation or normative
acts with afterwards approval by the Government and adoption by the Parliament is 5 monthsmaximum. Taking into consideration the priority set by the Presidential programme this term isexpected to be shorter.
Draft amendments to the phytosanitary regulation have been elaborated to address the
following issues of WTO Agreement on SPS:
- transparency: notification and access to documentation;
- provision on scientific evidence for regulations governing animal and plant health
and food safety;
- harmonization with the international standards, guidelines and recommendations in
establishing SPS measures;
- non-discrimination;
- establishment of a single inquiry point;
- equivalence: recognition of the SPS measures of other members that achieve the same
level of protection;
- provisions for taking into account regional conditions when preparing SPS measures.
Currently similar amendments are being drafted for the sanitary and veterinary regulations.
These regulations are expected to be passed at the same time.
The first draft of the amendments relating to Phytosanitary regulations are contained within
document WT/ACC/MOL/17.
Question 85.
Re Question 80 (b) [p. 36] of WT/ACC/MOL/9, please confirm  that the draft law on
certification was accepted by the Government  and the Parliament. Please give the date this lawentered into force.WT/ACC/MOL/11
Page 39
Answer:
This draft law has been adopted by the Government and is currently in the Parliament for
approval.
Question 86.
We have reviewed Moldova's Standardization Law, and we note that Moldova's responses to
questions indicate the existence of a draft certification law and amendments to the
Standardization law.
Please provide a copy of the amendments to the Standardization Law and the amendments to
implement the WTO SPS Agreement referred to in the response to Question 96 of
WT/ACC/MOL/9.
Answer:
As said earlier in the response to Question 96 of WT/ACC/MOL/9, concerning the
implementation of the SPS Agreement, Moldova has prepared amendments to the Statute of
Phytosanitary Inspectorate that address the issues referred to in the reply to the previous question.
Together with these answers are submitted (unofficial translation):
- draft Law "Amendments to the Law on Standardization";
- draft Law on Certification of Goods and Services (currently in the Parliament for
approval);
- amendments to the Statute of Phytosanitary Inspectorate;
- list of legislation and translated copies of some of them provided in document
WT/ACC/MOL/22 "Analytic Note  listing Moldovan Legislation, Decrees, Decisions
and Regulations Relevant to the WTO Legal Texts: Status of Draft Legislation and
Draft Amendments".
Question 87.
In the context of Moldova's response to Question 95 of WT/ACC/MOL/9, we have provided a
list of specific requirements of the WTO Agre ements on Technical Barriers to Trade and
Sanitary and Phytosanitary measures (checklists provided separately).
We would appreciate Moldova's efforts to indicate in written response the specific citation in
Moldovan law or regulation and other relevan t information that addresses each requirement
describing the specific measures that Moldova has undertaken to bring its system into
conformity with TBT and SPS obligations.
Answer:
The Republic of Moldova has submitted the checklists for Moldovan compliance with TBT
and SPS Agreements in documents WT/ACC/MOL/19 and WT/ACC/MOL/20, providing the specific
citation in Moldovan law or regulation and other relevant information that addresses each requirementdescribing the specific measures that Moldova has undertaken to bring its system into conformity with
TBT and SPS obligations.WT/ACC/MOL/11
Page 40
Question 88.
Our preliminary review to date indicates that Moldova does not provide for non-discrimination
and national treatment in its TBT and SPS regimes, has not yet established procedures for
publication for prior comment, or to prohibit unnecessary barriers to trade in the formulation
of standards, technical regulations and conformity assessment procedures.
Answer:
As stated in the reply to the Question 80, Moldova introduced relevant provisions in its draft
TBT and SPS legislation addressing non-discrimination and national treatment, procedures for
publication for prior comment, and prohibition of unnecessary barriers to trade in the formulation ofstandards, technical regulations and conformity assessment procedures.
Question 89.
We have the following specific questions and comments:The response to Question 82 in WT/ACC/MOL/9 states that certification requirements for
specific classes of products are spelled out by the Standards Department for each accredited
body. The response to Question 85 states that there are no specific regulations or requirements
for electrical safety, telecommunications equipment, medical devices, etc.
Does this mean that certification requirements for these classes of products are spelled out in
mandatory standards?
Answer:
No, they are not included in the standards. General certification requirements are spelled out
in two documents: General and Specific Procedures of the Certification Bodies (RG 01-05-92 of 1994
and RG 01-06-92 of 1994 respectively). These requirements correspond to the European Standard EN
45011 “General criteria of certification bodies” for certification of products.
Question 90.
The response to Question 86 of WT/ACC/MOL/9 deals with specific certificates. Moldova
indicates that production certification in th e Republic of Moldova is carried out according to
the TBT Agreement conformity requirement.  What does that mean in practice, i.e., please
describe specifically how is it in accordance wi th the Agreement? Are there no certificates of
conformity required for products subject to mandatory certification, except for hygiene
certificates?
Answer:
The MFN and national treatment provisions applied to imported product in the Republic of
Moldova.
The procedures for conformity assessment in accordance with TBT Agreement “in a manner
no less favourable than that accorded to like products of national origin and to like productsoriginating in other countries” are respected by th e National Certification Body (NCB) in the meaning
that imported products are treated equally with respect to any fees charged for certification. The
procedures are not stricter or more time-consuming than are necessary to assess that a product
complies with the domestic laws and regulations of  the Republic of Moldova. The international guides
or recommendations issued by international bodies are used for national procedures of conformityassessment unless they are inappropriate for Moldova concerning such reasons as national securityWT/ACC/MOL/11
Page 41
requirements, prevention of deceptive practices, protection of human health or safety, animal, plant
life or health.
The hygienic certificate is a part of certificate of conformity. The conformity documents are
required for all products subject to mandatory certification. The Governmental Decision No.414,dated 13 June 1994 and the Governmental Decisi on No. 696 dated 9 October 1995 list the products
that are subject to mandatory certification. Currently, new draft amendments are proposed to
Governmental Decision No. 696 and Governmental De cision No. 414 that list a new nomenclature of
products subject to mandatory certification.
Question 91.
What products can be placed on the market solely on the basis of a manufacturer's declaration
of conformity?
Answer:
The manufacturer’s declaration of conformity could be recognized if the manufacturer has the
Quality System and is able to demonstrate th at requirements of European Standard EN 45014
"General criteria for suppliers" declaration of conformity” are respected.
Question 92.
Re Question 16 of WT/ACC/MOL/9, please confirm the creation of an inquiry point, required
by the SPS agreement, under the State Inspection of Phytosanitary Quarantine or within the
Department of Standards.
Answer:
Moldova confirms that the inquiry point required by the SPS Agreement is set within the
Department of Standards.
Question 93.
In the response to Question 91, Moldova states that it has established the required inquiry
points concerning government actions in the areas of standards and technical barriers to trade,
as well as services in August 1998.
Moldova also describes how the inquiry offices will help address the GATT requirements of
Article X for transparency in the application of laws, decrees, etc.  Could Moldova describe the
activities of the inquiry point and its contributions to transparency in the application of laws
and decrees since August 1998?
Answer:
As mentioned in the  reply to the Question 91 of the document WT/ACC/MOL/9, an inquiry
point has been established within the Department of Standards. For the purpose of addressing the
issues of services other inquiry points will be established within the relevant governmental
institutions. The first one will be established within the Ministry of Economy and Reforms. There arealready contacts with private businesses for providing relevant information requested, as well as
compiling the necessary database of legislation, including some translated laws and regulations.WT/ACC/MOL/11
Page 42
Question 94.
Could Moldova describe any proposed rules that it has published, and any public comments it
has received in response to the proposed rules?
Answer:
The draft of the Law on Protection of Consumer s Rights was published on 18 September 1998
in the newspaper “Chisinau Observer” for comment. Some 25 comments were received from
Moldovan consumers, lawyers, ministries and departments and ten of them have been taken into
consideration.
Question 95.
Could Moldova describe any final rules it has published since the last Working Party?
Answer:
No such rules have been published since last Working Party meeting in April 1999.
Question 96.
Moldova should notify the Working Party of the address and other information on how to
contact these offices, e.g., in the manner of WT/ACC/EST/19.
Answer:
The TBT and SPS inquiry point is created within the National Centre for standardization and
certification. The address is:
28, Coca str,
Chisinau city
Republic of Moldova
Tel: (373-2) 75Fax: (373-2) 75-05-81
E-mail: standard @ standart.mldnet.com.
Director: Mr. Keptene Pavel
Question 97.
The response to Question 93 indicates that Moldova intends to present an updated information
to TBT questionnaire.
Please revise the response given to the TBT questionnaire, and provide similar information on
Moldova's compliance with the WTO Agreement  on Sanitary and Phytosanitary Measures.
Answer:
The updated TBT and SPS Questionnaires are submitted together with these answers.
Question 98.
We have the following additional comments on the 1995 Law on Standardization:WT/ACC/MOL/11
Page 43
Concerning Article 4, Moldova states that most standards are mandatory and thus actually
serve as "technical regulations". There are no references, however, to international standards
until Article 18 and 19.
Answer:
The draft Law on TBT (Articles 5, 6  and  8) and the Moldovan Standards  SM 1-0,   SM 1-3,
SM 1-5 provide for consideration of appropriate international standards, guides and recommendations
as a basis for standards.
Question 99.
Article 8 states that any Ministry, department or company can establish a standardization
division. How does Moldova plan to address the means of coordinating ministry or department
activities?
Answer:
The methodological co-ordination of the activity of standardization divisions of ministries,
departments or companies will be organized and monitored by the National Standardization Body –
Department of Standards, Metrology and Technical Supervision of the Republic of Moldova .
Question 100.
Article 9, concerning the elaboration and approval of standards - there is nothing mentioned
about this process being open, transparent, or providing opportunity for comment by interested
parties. How does Moldova intend to provide for this?
Answer:
Fundamental Moldovan standard SM 1-3:1997 paragraphs. 3.8.1 and 3.8.2 provide for the
drafts of standards to be subject to public comment during 60 days. The official publication “Buletinul
standardizarii” publishes the documents drafted by technical committees and informs the public on
time limits for comments.
Question 101.
Article 13 - application of standards and their obligatory character - this Article states "in areas
where no normative standardization documents have been established it is prohibited to ...placeproducts on the market". This seems overly restrictive. Could Moldova clarify how this Article
is administered?
Answer:
The Law on Amendments to the Standardisation Law provides the voluntary application of
standards. In the case there is no standardization document in Moldova related to a certain product it
could be placed on the market after a general certification concerning the medico-biological
requirements and after the presentation of the producer's standard on it.
Question 102.
Article 15 - state control and supervision - this Article addresses standardization documents
concerning the development, production, delivery, trade, use, storage and transport of products.
This seems more like comprehensive technical regulations than standards. Could Moldova
clarify?WT/ACC/MOL/11
Page 44
Our objective is to confirm that Moldova will apply all obligations under the WTO Agreements
on Sanitary and Phytosanitary Measures and Technical Barriers to Trade from the date of
accession. We appreciate the efforts made to da te by Moldova in this regard. We look forward
to reviewing the additional information offered  by Moldova and recently requested to complete
our review and assessment.
Answer:
The Law on Amendments to the Standardization Law addresses this issue by introducing the
principle of voluntary standards. With this change, questions taken by Article 15 will become the
subject, as necessary, to technical regulations.
(l) Government procurement practices
Question 103.
In response to Question 40 of WT/ACC/MOL/8, Moldova indicated its intent to initiate
negotiations for accession to the Government Procurement Agreement upon accession. The
response to Question 102 of WT/ACC/MOL/9, however, appears to withdraw from that
statement. Please clarify Moldova's position on this issue.
We urge Moldova to confirm in the Working Part y report and protocol that, upon accession to
the WTO, Moldova will become an observer to  the Agreement on Government Procurement
and initiate negotiations for membership in the Agreement by tabling an entity offer.
Answer:
Moldova confirms that, upon accession to the WTO, it will become an observer to the
Agreement on Government Procurement and initiate negotiations for membership to the Agreement
by tabling an entity offer immediately after accession.
4.    Policies Affecting Foreign Trade in Agricultural Products
WT/ACC/SPEC/MOL/l/Rev.3.
Moldova has done a good job in preparing these supporting tables on domestic support and
export subsidies. We know how difficult this ta sk is, and provide only a few comments on this
submission.
DS:1 Measures exempt from the reduction commitment
Question 104.
Generally speaking, the measures Moldova includes in the "green box" look on the surface, to
be consistent with Annex 2 criteria. However, Moldova should include more descriptive detail of
how these programmes operate (either in an endnote or next to the measure), including specific
reference to the relevant Annex 2 criteria, so that we can be certain that these measures are
truly consistent with the green box criteria.
Answer:
Moldova has included specific references to the relevant Annex 2 criteria for each measure
from Table DS:1. Additional details on the operation of such programmes will be presented later asgeneral information.WT/ACC/MOL/11
Page 45
DS: 4 Calculation of the Aggregate Measurement of Support
Question 105.
Thank you for supplying value of production data for the de minimis  calculation. Is Moldova
aware that it is not required to include in the total AMS any support that is 5 per cent of less
than the value of production?  If Moldova includes de minimis  support in its base AMS, then
this support will have to be included in each year's current total AMS.
Answer:
Moldova considers that according to Article 1(h) "Total Aggregate Measurement of Support"
and "Total AMS" should "include all domestic support provided in favour of agricultural producers,
calculated as the sum of all aggregate measurements of support for basic agricultural products, all
non-product-specific aggregate measurements of support …".
Question 106.
The total value of non-product specific support appears to be missing from these tables.
Please specify the total non-product specific AMS in column 2.
Answer:
Moldova included non-product-specific support values in column 2 of Table DS: 4 for each
year.
DS:6 Product-Specific Aggregate Measurements of Support: Non-Exempt Direct
Payments
Question 107.
Please verify that the 1995 loan expenditures for livestock improvement expenditures only
reflect the subsidized component of these loans: fo r example, interest rate subsidies or deferrals
in repayment. Please clarify how these loans are subsidized, and how this calculation is made
for the livestock AMS.
Answer:
The relevant calculations to reflect the subs idized component of the loans are currently in
process and will be provided later with the revised tables.
DS:7 Product-Specific Aggregate Measurements of Support: Other Product-Specific
Support and Total Product-Specific AMS
Question 108.
Tax exemptions and privileges are not included in the AMS calculation. These should be
removed from supporting Table DS:7 (milk and livestock).
Answer:
Due to different circumstances, historical debts accumulated during the privatization period,
as well as financial constraints, the mechanisms supporting the agricultural producers used during theprevious years and that continue to be used nowadays mainly took the form of tax exemptions andWT/ACC/MOL/11
Page 46
privileges. This was the reaction to the real needs of the agricultural producers, and demonstrates the
government support during this period, which should be taken into consideration.
Moreover, Moldova considers tax exemptions and privileges of Table DS:7 as revenue
foregone according to Annex 3, paragraph 2 which stipulates that measures under paragraph 1 ofAnnex 3 (market price support, non-exempt direct  payments, or any other subsidy non-exempt from
the reduction commitment ("other non-exempt policies")) shall include both budgetary outlays and
revenue foregone by governments and their agents.
Currently Moldova is preparing its revised tables, where new information on debt relief has
been introduced and included, and VAT exemptions are removed. The revised tables and supporting
information together with other clarifications will be submitted shortly after this paper.
DS:9 Non-product Specific Aggregate Measurement of Support
Question 109.
Please provide more information (description) of the irrigation subsidy. How does this policy
operate? Is the amount reflected a budgetary outlay, or an estimate of revenue forgone? If it is
an estimate, please provide calculation details.
Answer:
"Irrigation" subsidy represents budgetary outlays administrated by "Apele Moldovei"
specialized in water supply. The purpose of this measure is to lower the costs for irrigation of
agricultural enterprises. At the beginning the government covered all expenditures on irrigation to the
agricultural sector. This included electricity and maintenance costs as well as the salaries of theemployees of those services units. Later the Government covered just electricity costs for state-owned
enterprises; this decreased the amount for subsidy.
Question 110.
Again, tax exemptions and privileges are not included in the AMS calculation. These measures
(road and real estate tax exemptions, land tax exemption, VAT exemption) should be removedfrom DS:9.
Answer:
See previous answer
V. TRADE-RELATED  INTELLECTUAL PROPERTY  REGIME
Question 111.
Upon reviewing the materials provided by Mo ldova since the last WP meeting as well as
previous documentation, we have the fo llowing comments on Moldova's IPR regime:
Has Moldova made available to member countries (in English) its detailed programme of
specific legislation and other changes that it de ems necessary to bring it into full compliance
with TRIPS? (Referred to by Moldova in WT/ACC/MOL/9 (20 January 1999), in answer to Q
118).WT/ACC/MOL/11
Page 47
Answer:
Together with these answers Moldova is submitting the document WT/ACC/MOL/22
"Analytic Note listing Moldovan Legislation, Decrees, Decisions and Regulations Relevant to the
WTO Legal Texts: Status of Draft Legislation and Draft Amendments" where all relevant IPRlegislation is listed, as well as pending draft legislation.
Question 112.
What is the status of Customs Code legi slation aimed at bringing Moldovan Customs
procedures into compliance with TRIPS?
Answer:
Although there is no provision in the Customs Code in the field of intellectual property
protection, a draft Governmental Decision on intellectual property rights enforcement and bordermeasures is addressing relevant TRIPS issues. The English version of the draft is submitted together
with these answers.
Question 113.
How has the Moldovan government implemented obligations under the two most recently
ratified WIPO copyright and phonogram treaties (ratified 28 January 1998)?
Answer:
The Parliament of the Republic of Moldova ratified on 20 January 1999, by Decision No.
1452-XIII: the WIPO Agreement concerning the copyrights of 20 December 1996; the WIPO
Agreement concerning interpretation and the phonograms of 20 December 1996; and in 28 November
1999, by Decision No. 206-XIV, the Agreement concerning the collaboration in the Copyright’s and
Neighbouring Rights’ domain, signed in Moscow at 25 September 1993.
Following the provisions of the above-mentioned agreements and Moldovan practice, the
State Agency for Copyright presented draft amendments to Law No. 29-XIV from 28 May 1998.
Question 114.
Re.  Question 133 of WT/ACC/MOL/9, please provide more information in follow-up to your
answer to Question 133 of WT/ACC/MOL/9   about when the law on Patents will be amended to
comply with Article 31 of TRIPS.
Answer:
The following amendments are proposed to the Law on Patents to comply with Article 31 of
TRIPS:
Judicial instances may authorize, without the agreement of the owner, the right to use a
patented invention under the following provisions:
- authorization of such use shall be considered on its individual merits;
- such use may only be permitted if: within a period of three years from the date on
which the patent was granted, the invention was not used or it was insufficiently usedby the owner; prior to such use the proposed user has made efforts to obtainWT/ACC/MOL/11
Page 48
authorization from the right holder in reasonable commercial terms and conditions,
and if such efforts have not been successful within a reasonable period of time. This
provision may be waved in the case of a national emergency or other circumstances
of extreme urgency or in cases of public non-commercial use; in such situations the
right holder shall be notified as soon as reasonably practicable;
- the scope and duration of such use shall be limited to the purpose for which it was
authorized, and in the case of semi-conductor technology shall only be for public
non-commercial use or to remedy a practice determined after judicial or
administrative process to be anti-competitive;
- such use shall be non-exclusive and non-assignable, except with that part of the
enterprise or goodwill which enjoys such use;
- any such use shall be authorized predominantly for the supply of the domestic
market;
- authorization for such use shall be liable,  subject to adequate protection of the
legitimate interests of the persons so authorized, to be terminated if and when the
circumstances which led to it cease to exist and are unlikely to recur. The judicial
instance shall have the authority to review, upon motivated request, the continued
existence of these circumstances;
- the right holder shall be paid adequate remuneration in the circumstances of each
case, taking into account the economic value of the authorization;
- the legal validity of any decision relating to the authorization of such use as well as
any decision relating to the remuneration provided in respect of such use shall be
subject to a  judicial review;
- conditions set forth in subparagraphs b) and e) shall not be applied where such use is
permitted to remedy a practice determined after judicial or administrative process to
be anti-competitive. The need to correct an ti-competitive practices may be taken into
account in determining the amount of remune ration in such cases. Court instances
shall have the authority to refuse termin ation of authorization if and when the
conditions which led to such authorization are likely to recur.
Where  a non-exclusive compulsory licence is granted for the exploitation of a patented
invention (hereinafter "the second patent")  which cannot be exploited without infringing
another patent (hereinafter "the first patent"), the following additional conditions shall apply:
- the invention claimed in the second patent shall involve an important technical
advance of considerable economic significance in relation to the invention claimed in
the first patent;
- the owner of the first patent shall be entitled to a cross-licence on reasonable terms to
use the invention claimed in the second patent;
- the use authorized in respect of the first pate nt shall be non-assignable except with the
assignment of the second patent;
- The Agency shall be informed about the decision concerning the grant of a non-
exclusive compulsory licence; the Agency shall record the decision in the National
Patent Register;WT/ACC/MOL/11
Page 49
- The Agency shall publish in the Official Bulletin data referring to the granted non-
exclusive compulsory licenses, as well as data in respect of modifications occurred in
connection with it within 3 months following the date on which they were entered in
the National Patent Register;
- If the holder of a non-exclusive compulsory licence has not undertaken any
preparation for exploiting the invention within the year following the grant of the
licence, the non-exclusive compulsory licence may be cancelled;
- In any event, a non-exclusive compulsory licence shall terminate if the holder thereof
has not begun exploitation of the inventio n within two years following the date on
which the licence was granted to him.
Question 115.
Re Question 134 of WT/ACC/MOL/9, please clarify your answer to Question 134 of
WT/AC/MOL/9 on patents.
Answer:
In conformity with the provisions of Article 23 (1) a , the importation of the patented product
shall constitute the fact of "working that patent".
Question 116.
Re Question 138 of WT/ACC/MOL/9, please give more information on Question 138 of
WT/AC/MOL/9    on the timing of the legisl ative process for the law under consideration.
Answer:
Deadline of timing of the legislative consideration of the draft governmental decision on
border enforcement measures is August 1999, as is stated by the President of the Republic of
Moldova.
Question 117.
Moldova does not appear to have restored protec tion for works which, at  the coming into force
of the Berne Convention, had not yet had a full term of protection in Moldova and were still
protected in the country of origin, as is requi red by Article 18 of the Bern Convention. The
documentation provided by Moldova to the WTO Working Party on Accession of the Republic
of Moldova does not refer to any proposal for amendment of the copyright law to provide
protection for such pre-existing works.
Does Moldova have any pending legislative or regulatory mechanism to provide copyright
protection or pre-existing works (pre-1994) as required by Bern Article 18, incorporated into
TRIPS Article 9.1?
Answer:
The same draft amendments to the Law No. 29-XIV from 28 May 1998 address this issue.
Question 118.
With regard to the protection of data submitted to obtain marketing approval for
pharmaceuticals and agricultural chemicals:WT/ACC/MOL/11
Page 50
Is it possible for a second applicant to obtain approval for a pharmaceutical or agricultural
chemical that is the bio equivalent of another pharmaceutical or agricultural chemical by
relying on data that was submitted by the first applicant?
Answer:
Since there is no such legislation so far in Moldova, the Government is considering how to
meet its obligations to protect undisclosed information as set in TRIPS Part II Section 7.
Question 119.
Statutory damages provided for intellectual property infringement are stipulated in
terms of minimum salaries.
Can the Government of Moldova estimate what the range of damages would be in
dollars?
Answer:
For the infringement of copyright and neighbouring rights the following penalties have
been established (in dollar equivalent):
- In 1994 at the time of adoption of the Law on Copyright and Neighbouring
Rights the penalties were ranging from US$5 to US$90.000;
- At current exchange rates, the same penalties would range approximately from
US$1.5 to US$30.000.
Question 120.
Also, given the different questions and answers that have addressed this issue over time, would
it be possible for the Moldovan government to provide a comprehensive response that provides
details of available criminal and civil damages for trademark and copyright infringement, as
well as for patent infringement?
Answer:
Copyright infringements are stipulated in the following legal acts:
- Law on Copyright and Neighbouring Rights (Article 38);
- Code on Administrative Infringements (Article 51(2));
- Penal Code (Article 141 (1)).
Also see:
- Law on Patents (Article 34 and 35).
Unlawful hold of authorship, forcing to co-authorship is penalized with the term in prison for
up to two years or with a fine of up to 60 minimum salaries (currently equivalent to approximately
US$95.
For the infringements of the right of patent holder, the person found guilty is obliged to repair
the damages caused, including the foregone profit.WT/ACC/MOL/11
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Law on trademarks and appellations of origin of products in its Article 25 provides that at the
request of the right holder the stock of fraudulent trademarks shall be destroyed even if this action
will lead to destroying the product.
Administrative and penal responsibility is foreseen by Article 152 (2) of the Code on
Administrative Infringements and Articles 141 and 158 of the Penal Code respectively. To conform to
TRIPS further amendments have been prepared to th ese legal acts in order to increase the penalty.
Question 121.
We welcome Moldova's emphasis on the establishment of procedures for provisional relief, and
for civil and criminal damages. We are unclear, however, as to what the actual penalties are.Could Moldova provide more information on this point?
Answer:
Administrative and penal responsibility is foreseen by Article 152 (2) of the Code on
Administrative Infringements and Articles 141 and 158 of the Penal Code respectively. According to
TRIPS further amendments have been prepared to th ese legal acts in order to increase the penalty.
Article 152 (2) of the Code on Administrative Infringements foresees a fine of 15 to 25
minimum salaries (approximately US$20 to US$40) with  or without confiscation of the products that
have been counterfeited or for illicit utilization of a trademark.
The penalties are specified in Article 141 of the Penal Code are given in the previous answers
to Question 116. In addition, the penalties foreseen by Article 158 of the Penal Code for the
counterfeiting of products and illicit utilization of the trade mark are ranging from 500 to 1,000minimum salaries (approximately from US$780 to US$1,600) in the case there is a precedent
penalized administratively.
Further amendments to this Article have introduced the following penalties:- for the production, trade, transportation and stocking of counterfeited alcoholic
beverages, in the case there is already a precedent penalized administratively, thepenalty is a term of up to three years in prison or a fine ranging from 150 to 500
minimum (approximately form US$30 to US$780) salaries with confiscation of the
products;
- for the same infringements in larger proportions and with precedents the penalty is a
term in prison of 3 to 7 years, or a fine ranging from 500 to 2,000 minimum salaries(approximately from US$780 to US$3,200) with confiscation of the products;
- for the same infringements in very large proportions the term in prison is from 7 to 12
years or a fine ranging from 2,000 to 3,000 minimum salaries (approximately from
US$3,200 to US$4,800) with the confiscation of the products.
Question 122.
The response to a number of questions, Moldova indicates that it is preparing legislation to
bring its IPR regime into conformity with the WTO TRIPS Agreement. We are submitting a
chart listing TRIPS provisions and seeking re ference by Moldova for each requirement the
citation in Moldovan law or regulation that addres ses this requirement. We believe that this can
be helpful in monitoring Moldova's progress towards compliance.
Moldova should prepare and submit to the Wor king Party a chart listing the legislation
intended to address deficiencies in current im plementation, the specific requirements of the
TRIPS Agreement this legislation is designed to address, and the time table for implementation.WT/ACC/MOL/11
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We seek Moldova's full compliance with all th e provisions of the Agreement on Trade-Related
Aspects of Intellectual Property Rights from the date of its accession to the WTO, without
recourse to any transitional period.
Answer:
Moldova is ready to fully comply with all the TRIPS provisions form the date of its accession
to WTO.
Together with these answers, a Checklist of TRIPS requirements and compliance by the
Republic of Moldova is provided in document WT /ACC/MOL/21, as well as a chart listing the
existing legislation and the drafts intended to address deficiencies in current implementation.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services (Annex 8A refers)
Question 123.We continue to seek a commitment from Mold ova that it will join the WTO Agreement on
Trade in Civil Aircraft upon accession and elim inate tariffs on imports of civil aircraft and
parts.
Answer:
Moldova confirms that it will join the WTO Agreement on Trade in Civil Aircraft, as soon as
possible after accession and eliminate tariffs on imports of civil aircraft and parts.
Question 124.
Concerning Moldova's trade agreements with Romania and the CIS:
In its response to Question 25 ofWT/ACC/MOL/9, Moldova stated that "the portion of the
imports coming from the countries with whom  Moldova has signed free trade agreements (CIS
and Romania) constitutes 61.5 per cent of total import" in 1997. These agreements greatly affectthe value of Moldova's market access commitmen ts, and additional information on them is
necessary in this context.
We would appreciate the information promised  by Moldova in the response to Question 146,
including information on the scope of the dut y free treatment accorded in each agreement;
exceptions to the elimination of tariffs; and an y special provisions concerning trade in services,
investment, or movement of persons.
Answer:
Currently the information on the free trade agreements signed with CIS countries and
Romania in the format used in Committee on Regional Trade Agreements is in preparation. Due to a
large amount of statistics and recent changes introduced in the CIS free trade agreement these
documents will be submitted later.WT/ACC/MOL/11
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Question 125.
Please provide additional information on Question 25 of WT/ACC/MOL/9 concerning products
which enter Moldova duty free as part of any pref erential trading agreement. Please specify the
products in your response, and the PTA under which they qualify for duty free access.
Answer:
The products entering Moldova duty free in the framework of the free trade agreements
signed with CIS countries and Romania are agricultu ral and industrial products, as well as energy
resources and other raw materials. These products account  for more then 700 items of goods
classification at the four digit level.
Question 126.
Re Question 146 of WT/ACC/MOL/9, please clarify your answer to Question 146 of
WT/ACC/MOL/9 by providing a schedule which clarifies the state of all preferentialagreements presently held by Moldova  with third countries. In this schedule state the name of
the country with which the PTA  is negotiat ed, the goods covered, the percentage of trade
covered by the PTA, and give details about whether the agreement is still in force. Please also
state on the schedule whether each PTA has been made compatible  with the GATT rules.
Also as promised in Moldova's answer to Question 146, we look forward to Moldova's
provision of additional information on its economic integration agreements that include trade
in services and how they are consistent or are being brought into consistency with the
requirements of GATS Article V.
Answer:
Moldova confirms that it will observe the WTO provisions, including those of Article XXIV
of the GATT 1994 and Article V of the GATS in its trade agreements, and will ensure the notification
of the provisions of these agreements to the WTO. The detailed information requested will be
submitted later.
Question 127.
Please confirm any border agreements which have entered into fo rce with neighbouring
countries.  Are there any aspects of customs co-operation in these agreements?
Answer:
There are customs cooperation agreements signed with Ukraine and Romania that foresee
usual customs cooperation concerning the facilitation and harmonization of border control measures.
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