WORLD TRADE RESTRICTED WT/ACC/SPEC/YEM/5/Rev.5 18 December 2012 ORGANIZATION (12-6969) Working Party on the Accession of Yemen

DRAFT REPORT OF THE WORKING PARTY ON THE ACCESSION OF YEMEN TO THE WORLD TRADE ORGANIZATION

Revision

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TABLE OF CONTENTS

I. INTRODUCTION ...... 1 DOCUMENTATION PROVIDED ...... 1 INTRODUCTORY STATEMENTS ...... 1 II. ECONOMIC POLICIES ...... 2 - Monetary and Fiscal Policy ...... 2 - Foreign Exchange and Payments ...... 4 - Investment Regime...... 5 - State Ownership, Privatization and State-Trading Entities ...... 9 - Pricing Policies ...... 14 - Competition Policy ...... 15 III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES ...... 15 - Powers of Executive, Legislative and Judicial Branches of Government ...... 15 - Authority of Sub-Central Governments ...... 18 IV. POLICIES AFFECTING TRADE IN GOODS ...... 19 - Trading Rights ...... 19 A. IMPORT REGULATIONS ...... 24 - Ordinary customs duties ...... 24 - Other duties and charges ...... 25 - Tariff rate quotas, tariff exemptions ...... 26 - Fees and charges for services rendered ...... 27 - Application of internal taxes to imports ...... 30 - Quantitative import restrictions, including prohibitions, quotas and licensing systems ...... 32 - Customs valuation ...... 38 - Rules of origin ...... 42 - Other customs formalities ...... 44 - Preshipment inspection ...... 45 - Anti-dumping, countervailing duties, safeguard regimes ...... 45 B. EXPORT REGULATIONS ...... 46 - Customs tariffs, fees and charges for services rendered, application of internal taxes to exports ...... 46 - Export restrictions ...... 47 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS ...... 47 - Industrial policy, including subsidies ...... 47 - Technical barriers to trade, standards and certification ...... 51

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- Sanitary and phytosanitary measures ...... 61 - Trade-related investment measures ...... 67 - Free zones, special economic areas ...... 68 - Government procurement ...... 69 - Transit ...... 70 - Agricultural policies...... 70 (a) Imports ...... 70 (b) Exports ...... 71 (c) Internal policies ...... 71 - Textiles regime ...... 72 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME ...... 72 - GENERAL ...... 72 - Industrial property protection ...... 72 - Responsible agencies for policy formulation and implementation ...... 72 - Participation in international intellectual property agreements ...... 73 - Application of national and MFN treatment to foreign nationals ...... 73 - Fees and taxes ...... 74 - SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ...... 74 - Copyright and related rights ...... 74 - Trademarks, including service marks ...... 76 - Geographical indications, including appellations of origin ...... 78 - Industrial designs ...... 79 - Patents ...... 80 - Plant variety protection ...... 82 - Layout designs of integrated circuits ...... 83 - Requirements on undisclosed information, including trade secrets and test data ...... 83 - MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS ...... 84 - ENFORCEMENT ...... 84 - Civil judicial procedures and remedies ...... 84 - Provisional measures ...... 86 - Administrative procedures and remedies ...... 86 - Special border measures ...... 87 - Criminal procedures ...... 87 VI. POLICIES AFFECTING TRADE IN SERVICES ...... 91

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VII. TRANSPARENCY ...... 95 - Publication of information on trade ...... 95 - Notifications ...... 96 VIII. TRADE AGREEMENTS ...... 96 CONCLUSIONS ...... 97 ANNEXES ...... 99

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I. INTRODUCTION

1. The Government of the Republic of Yemen applied for accession to the World Trade Organization (WTO) in April 2000. At its meeting on 17 July 2000, the General Council established a Working Party to examine the application of the Government of Yemen to accede to the World Trade Organization under Article XII of the Marrakesh Agreement establishing the WTO. The terms of reference and the membership of the Working Party are reproduced in document WT/ACC/YEM/2/Rev.13.

2. The Working Party met on 30 November 2004, 3 October 2005, 7 July 2006, 2 November 2007, 24 October 2008, 3 July 2009, 26 January 2010, 21 September 2010, 30 April 2012 and 23 July 2012 under the Chairmanship of Mr. Hartmut Röben (Germany).

DOCUMENTATION PROVIDED

3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the Foreign Trade Regime of Yemen (WT/ACC/YEM/3), the questions submitted by Members on the foreign trade regime of Yemen, together with the replies thereto, and other information provided by the authorities of Yemen (WT/ACC/YEM/4, WT/ACC/YEM/5, WT/ACC/YEM/6, WT/ACC/YEM/7 and WT/ACC/YEM/7/Rev.1, WT/ACC/YEM/8 and Revisions 1 to 3, WT/ACC/YEM/9 and Revisions 1 to 9, WT/ACC/YEM/10, WT/ACC/YEM/11 and WT/ACC/YEM/11/Rev.1, WT/ACC/YEM/12 and WT/ACC/YEM/12/Rev.1, WT/ACC/YEM/13 and Revisions 1 to 3 and Addendum 1, WT/ACC/YEM/14, WT/ACC/YEM/15 and Revisions 1 and 2, WT/ACC/YEM/16, WT/ACC/YEM/17 and Revision 1, WT/ACC/YEM/18, WT/ACC/YEM/19 and Revisions 1 to 3, WT/ACC/YEM/20 and WT/ACC/YEM/20/Add.1, WT/ACC/YEM/21, WT/ACC/YEM/22, WT/ACC/YEM/23, WT/ACC/YEM/24 and Revisions 1 to 3, WT/ACC/YEM/26, WT/ACC/YEM/27 and WT/ACC/YEM/27/Rev.1, WT/ACC/YEM/28, WT/ACC/YEM/29, WT/ACC/YEM/30, WT/ACC/YEM/31 and Revisions 1 and 2, and WT/ACC/YEM/32, WT/ACC/YEM/33, WT/ACC/YEM/34, WT/ACC/YEM/39, WT/ACC/YEM/41), including the legislative texts and other documentation listed in Annex I.

INTRODUCTORY STATEMENTS

4. The representative of Yemen said that his Government was committed to Yemen's integration into the Multilateral Trading System, and its accession to the WTO as soon as possible. Ongoing reforms complemented Yemen's WTO accession process, with trade liberalization a key component of the reforms. Following on from a structural adjustment programme launched in 1995,

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Yemen had begun implementation of a poverty reduction programme with the assistance of the IMF, the World Bank and other development partners. His Government was also a beneficiary of the Enhanced Integrated Framework initiative and looked forward to benefiting from trade-related technical assistance.

5. He added that Yemen, as a least-developed country (LDC), sought to benefit from all the special and differential provisions and the flexibilities granted to LDCs, including the transitional periods and technical assistance foreseen in the WTO Agreements, and the General Council's Decision on Guidelines for LDCs Accession (WT/L/508). Customs valuation, sanitary and phytosanitary measures, technical barriers to trade, and trade-related intellectual property rights were areas in which his Government required particular assistance and transitional periods.

6. Members welcomed Yemen's application to join the WTO and pledged to work constructively with Yemen to advance and conclude its accession on appropriate terms. While appreciating the domestic reforms already undertaken, Members noted that further work was needed to achieve compliance with WTO rules and disciplines. Some Members indicated that they would continue to extend technical assistance to facilitate Yemen's accession to the WTO. Yemen's status as an LDC was recognized, and in keeping with the guidelines on LDC accessions, this would be a relevant factor in establishing Yemen's terms of accession.

7. The Working Party reviewed the economic policies and foreign trade regime of Yemen and the possible terms of a draft Protocol of Accession to the WTO. The views expressed by Members of the Working Party on the various aspects of Yemen's foreign trade regime, and on the terms and conditions of Yemen's accession to the WTO, are summarized below in paragraphs 8 to 285.

II. ECONOMIC POLICIES

- Monetary and Fiscal Policy

8. The representative of Yemen said that the Central Bank of Yemen (CBY) was responsible for formulating and implementing monetary policy. In this regard, the CBY's main objectives were to maintain price stability, to provide sufficient liquidity to the economy, and to establish a stable financial system based on market principles.

9. Law No. 14/2000 "On the Central Bank of Yemen", Law No. 38/1998 "On Banks", Regulation No. 2/1997 "On Provisions and Procedures for Granting Licenses for Banking Activities" and Law No. 21/1996 "On Islamic Banks" regulated banking activities. The CBY was responsible for monitoring and supervising the banking sector, and issuing licenses for banking activities. Currently,

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the banking sector comprised nine Yemeni banks, four branches of foreign banks and four joint venture banks.

10. Reform and development of monetary and credit policies focussed on reducing inflation; containing the growth of money supply; improving the banking system by easing restrictions on banking activities; maintaining macroeconomic stability through low inflation, stability in exchange rates, and by building up foreign exchange reserves; restructuring the public and mixed banking sector to stimulate savings, lending and investment; developing specialized financial institutions for exports, sectoral development, and introducing loans for target groups (women, the poor, etc.); mobilizing domestic savings and increasing loans by banks and financial institutions to the private sector; minimizing the build-up of the Government's foreign debt, particularly from non-concessional sources, and negotiating a new round of debt forgiveness with the Paris Club; developing financial markets through a supportive legislative and institutional environment; improving the functioning of the treasury bills market; and, enhancing the independence of the CBY.

11. Efforts were ongoing to develop the monetary policy and monetary system to maintain exchange rate stability and control inflation. The Yemeni rial (YRl) had depreciated by less than 2 per cent against the US dollar in 2006. The local currency had been relatively stable over the period 2007 and 2009, before depreciating by around 10 per cent against the US dollar in the first quarter of 2010. Inflation had been brought down from more than 57 per cent in 1995 to 8 per cent in 2000. Since then, inflation had fluctuated year-on-year from a low of 4.3 per cent in 2004 to a high of 22.4 per cent in 2005, before dropping to 8.8 per cent in 2009. Interest rates had been relatively stable over the same period with benchmark interest earned on deposits currently pegged at 20 per cent and lending rates hovering around 27 per cent. The growth in broad money supply (M2) had ranged between 14.4 per cent in 2001 and 28.8 per cent in 2006, before dropping to 10.6 per cent in 2009. The confidence in the national currency was rising, reflected in the decline in the level of dollarization of the economy (from 52.5 per cent in 2005 to 42 per cent in 2009).

12. Yemen's fiscal policy aimed at stimulating economic growth. GDP had grown from YRls 1,662 billion in 2001 to YRls 5,374 billion in 2009. The non-oil sector had been expanding steadily during the period, at a pace of 4.5 to 5.5 per cent per year (in constant prices). Government revenue, including aid and grants, had increased from YRls 553.1 billion to YRls 2,109 billion between 2001 and 2008. Expenditure had kept pace with revenue growth and had expanded from YRls 506.7 billion to nearly YRls 2,342 billion over the same period. The budget had been in deficit in all years, except in 2001. The ongoing reforms focussed on controlling the budget deficits by limiting the growth in current expenditure and financing deficits from non-inflationary sources;

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restructuring the budget to increase outlays and investment on infrastructure, education and health; developing and diversifying the Government's revenue sources and tax base; improving tax laws and applying a simplified and transparent tax policy; eliminating discrimination against domestic production and exports in tax administration; and, mobilizing domestic and foreign resources to finance public projects. Information on Government revenue is summarized in Table 1.

Table 1: Government Revenue

(Billions of Yemeni Rials) Items 2003 2004 2005 2006 Tax Revenue 153 187 235 266 of which: Income Taxes 64 73 89 100 Taxes on Goods and Services 43 56 89 112 Custom Duties 42 52 52 36 Other Taxes 4 5 6 17 Non taxes 31 36 31 85 Grants 8 16 14 1 Oil Revenue 480 579 842 1,085 Total Revenue and Grants 672 818 1,122 1,437 Source: Central Bank of Yemen.

- Foreign Exchange and Payments

13. The representative of Yemen said that the Central Bank of Yemen, in consultation with the Government, formulated and implemented Yemen's foreign exchange regime and policies. The CBY was responsible for simplifying payments procedures, working as a financial agent and advisor to the Government, and was the custodian and manager of Yemen's official reserves.

14. The CBY was also responsible for issuing banknotes and coins. The legal tender and national currency was the Yemeni rial (YRl). Following the abolition of a multi-exchange rate system in 1996, Yemen had adopted a floating foreign exchange regime. In April 2010, the prevailing exchange rate was YRls 224 per US$1.

15. Yemen had accepted the obligations of Article VIII of the Articles of Agreement of the International Monetary Fund in December 1996. The CBY did not impose any restrictions on current transactions and guaranteed the remittance of foreigners' earnings resulting from foreign transactions. Yemeni nationals or residents also could engage in capital transactions such as foreign direct investment, trading in securities, foreign borrowing or lending and maintaining deposits abroad.

16. As a result of debt rescheduling with the Paris Club, the foreign debt of Yemen had decreased from US$10.5 billion in 1995 to US$4.9 billion in 2000, before rising to US$6 billion in 2009. This foreign debt rescheduling, coupled with increased petroleum revenue, had relieved pressure on

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the capital account and increased the current account surplus. In 2005, the current account surplus of YRls 122.5 billion had more than offset the capital account deficit of YRls 47.8 billion. Yemen's balance of payments had moved from a deficit of YRls 100.1 billion (2.8 per cent of GDP) in 1998 to a surplus of YRls 113.7 billion (3.9 per cent of GDP) in 2005. The merchandise trade balance had moved from a deficit of YRls 72.7 billion in 1995 to a surplus of nearly YRls 327 billion in 2005. Yemen's current account balance moved back to a deficit of 6.3 per cent of GDP in 2007, and 4.4 per cent in 2008.

17. In response to a query, the representative of Yemen said that a judicial order was required to freeze accounts in local or foreign currency. A judicial order could be appealed and revoked if evidence for the revocation was provided.

- Investment Regime

18. Investment Law No. 15/2010 of 23 August 2010 had replaced Investment Law No. 22/2002 and now served as the regulatory basis for foreign and domestic investment in Yemen. Pursuant to Article 4 of Law No. 15/2010, all sectors were open for investment barring the manufacture of weapons and explosive materials. Investments in certain sectors, namely oil and gas; minerals; banking and finance; import, export, wholesale and retail trade were outside the purview of the Investment Law and governed by separate legislation. In addition, Law No. 22/2002 had excluded activities considered contrary to the Shari'a and banned in Yemen such as investments in casinos, night clubs, swine and pork products, and alcoholic beverages; industries harming the environment or health; investments in the telecom sector governed by the Wired and Wireless Telecommunications Law No. 38/1991; and, investments in free zones covered by the Free Zone Law No. 4/1993.

19. The representative of Yemen considered it impractical to attempt to draw up a definite list of activities considered contrary to Shari'a, but he assured the Working Party that measures taken in accordance with Shari'a principles would be implemented in a non-discriminatory manner. As for investment in natural resources, he noted that exploration and extraction of oil and gas was governed by "Special Agreements" between his Government, represented by the Ministry of Oil and Minerals, and the petroleum companies in accordance with Article 18 of the Constitution. The "Special Agreements" or "Production Sharing Agreements" covered hydrocarbon exploration concessions. These agreements were approved by the Council of Ministers and subsequently forwarded to the House of Representatives (Parliament) for ratification and enactment into law. Yemen applied such measures in a similar fashion to other countries around the world and the agreements did not, in his opinion, raise concerns under any WTO Agreement. The exploration and extraction of minerals was regulated by the Mines and Quarries Law No. 24/2002. Investments in banks, exchange bureaus and

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financial companies were governed by the Law No. 38/1998 "On Banks", Law No. 21/1996 "On Islamic Banks", Law No. 14/2000 "On the Central Bank of Yemen", Law No. 19/1995 "On Financial Exchange", as amended by Law No. 15/1996; while investments in the insurance sector were regulated by Law No. 37/1992 "On Supervision and Monitoring of Insurance Companies and Agents", as amended by Law No. 9/1997. Wholesale and retail trade was regulated by Commercial Law No. 32/1991, as amended by Law No. 6/1998.

20. He added that the General Investment Authority had been established in 1992, serving as a one-stop shop for investment. The Authority provided data requested by investors; streamlined procedures to initiate, expand, develop and register investment projects in accordance with the Investment Law and by-laws; simplified procedures to establish investment companies and their branches; and, simplified procedures to bring in foreign expertise not available in Yemen. The General Investment Authority considered the investment applications together with supporting documentation against criteria such as compliance with applicable technical standards and disciplines; commitments to implement the project as per approved plans; and, ensuring limited or no negative environmental impact. Foreign and domestic investors were subject to the same registration procedures and requirements. Applications were processed within 15 days. He added that 6,700 projects had been registered with the Authority between 1992 and 2010 (Table 2).

Table 2: Investment Projects Registered with the General Investment Authority (1992-2010)

Sector Number of Enterprises Industrial 3,340 Agricultural 663 Fishery 184 Services 1,597 Tourism 916 Total 6,700

21. Concerning the right of appeal of investment decisions, the representative of Yemen said that investors could submit objections in writing to the President of the General Investment Authority within 30 days of the notification of the decision. The appeal should be considered within 20 days of submission. The appeal was considered accepted if no reply had been received by the end of this period, and the relevant decision-making authority was accordingly expected to make the decision consistent with the investor's submission. In case of rejection, the investor was entitled to appeal further to the Prime Minister, who would take a decision within 10 days, or to the Council of Ministers, which would decide on the matter within 30 days. Having exhausted the administrative channels of appeal, the investor could also file an appeal with the courts.

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22. Investment disputes could be referred to arbitration by written agreement between the parties. The arbitrators' decisions had the same power and effect as rulings of Yemeni courts. To settle a dispute with the Yemeni Government or State, an investor could opt for arbitration under Yemeni rules and procedures or invoke the procedures of the Unified Investment Agreement for Arab Capital Investment in Arab countries, the International Convention for the Settlement of Investment Disputes between the State and the nationals of another State, the commercial arbitration rules and procedures of the United Nations' International Law Commission; or any international or bilateral agreement to which Yemen was a signatory. Yemen had concluded bilateral investment treaties with Algeria, Austria, Belarus, Belgium, Bulgaria, China, Croatia, Djibouti, Egypt, Eritrea, Ethiopia, France, Germany, Hungary, India, Indonesia, Iran, Italy, Jordan, People's Democratic Republic of Korea, Kuwait, the Lebanese Republic, Malaysia, Mauritania, Mongolia, Morocco, the Netherlands, Oman, Pakistan, Qatar, Romania, the Russian Federation, South Africa, Sudan, Sweden, Syria, Tunisia, Turkey, Ukraine, United Arab Emirates and the United Kingdom. Yemen was a member of the International Convention for the Settlement of Investment Disputes and the Islamic Corporation Agreement for Investment Guarantee and Export Credit. However, Yemen was not a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

23. Guarantees and other benefits accorded to investment pursuant to the Investment Law included (i) non-discrimination and equality for Yemeni and foreign investors with respect to rights, obligations, rules and procedures (Article 5 of Law No. 15/2010); (ii) guarantees against nationalization of investment projects or confiscation by any decision other than a judicial order; (iii) allowing all investors 100 per cent ownership of an investment project, including any real estate associated with it; (iv) full freedom to manage the projects and export any resulting goods or services without limitations; (v) allowing insurance of investments against non-commercial risks at any international institution of which Yemen was a member; and, (vi) free transfer of foreign currency in cash to or from Yemen, or re-export of the capital invested whether in kind or in cash, in case of liquidation or disposal of the project. In case of expropriation, foreign investors were entitled to the same compensation as that offered to domestic investors. Investors were permitted to employ foreign nationals according to the needs identified in the project's list of requirements. Non-Yemeni personnel could be granted three-year renewable work permits and residence visas upon the recommendation of the General Investment Authority.

24. The Investment Law No. 22/2002 contained provisions for granting tax and import duty exemptions (Articles 18, 20, 21, 23 and 26). All industries covered by the Law could avail of the tax exemptions. The value of the fixed assets of the project should exceed YRls 50 million; except in agriculture and for small projects with at least 10 employees. Incentives for tourist establishments

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and housing projects were contingent upon the hotel having no lower than a three-star rating and the housing project having at least 50 housing units. Applications for exemptions with supporting documents (the project's registration certificate and documents proving commercial registration and the start-up of production) had to be submitted within 90 days of commencing operations. The General Investment Authority verified that the project fulfilled the conditions to benefit from the incentives, and issued a tax exemption certificate within 60 days upon receipt of the application and supporting documentation. The rights of the investor would not be prejudiced in the unlikely event that the issue of the tax exemption certificate was being delayed. Tax and customs duty exemptions were granted for fixed assets included in the investment projects and inputs to fisheries, livestock and agricultural production. A 50 per cent reduction in customs duties was available for inputs used in other sectors or projects. Spare parts accounting for no more than 10 per cent of the fixed assets were exempted from customs duty. Means of transport were duty exempt if they formed an integral part of the investment (e.g. buses for tourism). The duration of exemptions from property taxes and fees, the income tax on dividends, the profit tax, fees and taxes on exports, etc. ranged from 7 to 16 years depending on the location of project, the percentage of Yemeni ownership in joint-stock companies, and local content in the fixed assets. To encourage investment in remote areas an additional two-year tax exemption was granted to projects located outside a 20 - 25 kilometre radius of the cities of Aden, Al-Hudaidah, Mukalla, Sana'a and Taiz. Investments in joint-stock companies were entitled to an extra two-year tax exemption when at least 25 per cent of the equity was owned by Yemenis. An additional two years of tax exemption could also be accorded to investments with a local component of not less than 25 per cent of the total fixed assets (Article 21 (c)). The General Investment Authority could deny applications for duty and tax exemptions if equivalent fixed assets could be sourced locally (Article 18 (f)). Tax exemptions could be carried forward for up to three years for projects incurring losses. The tax exemptions could also be applied proportionally in case of project expansions. Profits from exports were not taxed even after the exemption period had lapsed (Article 26).

25. Some Members noted that Yemen appeared to apply investment incentives discriminating against foreign investors and contingent upon export or the use of local content, reminding Yemen that the Agreement on Subsidies and Countervailing Measures did not exempt LDCs from the prohibition of local content or export performance subsidies. Yemen was urged to abolish such criteria from its investment incentives regime and to equalize the treatment of foreign and domestic investors. In particular, Yemen was requested to consider the elimination of the additional tax exemption granted to investment projects with at least 25 per cent Yemeni equity; to examine alternatives to the use of export subsidies in its investment regime; and, to notify and provide a

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timetable for phasing out prohibited investment incentives contingent upon the use of domestic over imported goods.

26. In reply, the representative of Yemen provided a subsidies notification in document WT/ACC/YEM/29, and an action plan for eliminating subsidies contingent upon the use of domestic over imported goods in documents WT/ACC/YEM/27 and WT/ACC/YEM/27/Rev.1. He said that his Government had reviewed the Investment Law No. 22/2002 for consistency with WTO requirements. He considered the investment incentives provided to be general in nature and not specifically targeted to any industry. In his opinion, these incentives were accorded to local and foreign investors without discrimination and in accordance with the flexibilities allowed for LDCs within the WTO framework. He added that the new Investment Law No. 15/2010 had eliminated the local content based incentives provided for in Investment Law No. 22/2002.

27. Having examined a draft of the new Investment Law, a Member noted that enterprises with investments already in operation would continue receiving all the benefits and investment incentives granted under Law No. 22/2002 till the end of their exemption period (Article 29 (a)). Investment projects in the pipeline, and registered pursuant to Law No. 22/2002, would also be granted tax and duty exemptions if operations started within two years from the date the new Investment Law entered into force (Article 29 (b)). In response, the representative of Yemen acknowledged that investment projects established pursuant to Investment Law No. 22/2002 would continue to benefit from the tax and import duty exemptions already granted until the end of their exemption period. The new Investment Law No. 15/2010 had come into effect upon publication in the Official Gazette. New investments would subsequently operate on the basis of the new legislation.

- State Ownership, Privatization and State-Trading Entities

28. The representative of Yemen said that State-owned enterprises played a minimal role in the national economy. Although data was scarce, he estimated that State-owned enterprises in the industrial sector accounted for approximately 1.2 per cent of the number of firms and around 10 per cent of the output of the sector in 2005. The operation of State-owned enterprises was governed by Law No. 35/1991 "On Public Authorities, Corporations and Companies", as amended by Law No. 7/1997, or by the decrees establishing these enterprises. The degree of State-ownership differed from one enterprise to another, as shown in Table 3.

29. Asked whether the State-owned enterprises faced private sector competition, he said that the majority of them operated on free market principles. However, monopolies had been established for

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fixed-line telephone services (the Public Telecommunication Corporation), international telecommunication services (TeleYemen), electricity production and distribution (the Public Electricity Corporation), and water and sewage (the Public Corporation of Water and Sanitation). Yemen had no plans to break up the existing monopolies, but would allow private sector participation gradually to ensure universal access to essential services. In this regard, public-private partnership had been introduced in the power sector with the private sector generating electricity for sale and distribution by the Public Electricity Corporation.

30. The Decree establishing a State-owned enterprise stipulated the appointment mechanism for the members of the board. As a general rule, the President or the Prime Minister would appoint the entire board for wholly-owned State enterprises. In part-owned enterprises with a majority State holding, the Council of Ministers approved the company's regulations and the President or Prime Minister appointed the chairman and the members representing the Government as owner, while the private sector members were elected by the general assembly of the enterprise. The formation of the Board of Directors and decision making in enterprises with Government ownership of less than 50 per cent was subject to the firm's Articles of Association. These companies operated in a manner similar to private enterprises. Questioned about the corporate governance rules applied to wholly and partly-owned State enterprises - i.e. the type of decisions taken by the Board of Directors, how these decisions were made, whether written minutes were kept of Board meetings and made available to the shareholders or the public, and whether State-owned enterprises issued annual reports available to the public - the representative of Yemen said that the Boards of Directors established the policies and objectives of the institutions; approved investment plans; endorsed administrative and financial regulations; approved the annual financial plan of the entity, the general budget, fiscal accounts and the annual inventory; decided on contracts regarding investments, loans and credits; appointed branch managers; and, approved studies, recommendations, proposals and draft decisions for consideration of the Minister or the Prime Minister. Decisions were taken by majority voting, and minutes of the meetings and annual reports were made available to the shareholder(s). State-owned and State-controlled enterprises were subject to international accounting standards, and an independent audit was required by Yemeni law. The enterprises were also subject to the provisions governing bankruptcy in Articles 570-823 of Commercial Law No. 32/1991.

31. Asked whether State-owned and State-controlled enterprises were subject to Law No. 3/1997 "On Government Bids, Tenders and Warehouses" and how these enterprises made purchases for operational purposes, he said that the Law excluded from the enforcement of its provisions units of the public sector "with productive nature" and units of the "mixed" sector in recognition of the

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commercial nature of their activities, and excluded other legislation governing the establishment and operations of such enterprises.

32. As for privatization, the representative of Yemen said that privatization was carried out within the framework of his Government's economic reform programme, the national poverty reduction strategy, and economic needs. Legislation related to privatization included the Decree No. 150/1994 "On Privatization of Public Institutions"; Decree No. 8/1995 "On Regulatory and Executive Procedures for Privatization"; Republican Decree No. 399/1999; and, Law No. 45/1999 "On Privatization". The legislation had been adopted to regulate and streamline privatization procedures; limit or redefine the role of the State in the management of the economy; reduce the expenditure and increase the efficiency of State-owned enterprises; encourage private investment and ownership; and, enhance the inflow of investment and advanced technology. Local and foreign investors enjoyed equal opportunities to participate in the privatization process. Information on enterprises that have been privatized, liquidated or are undergoing privatization is provided in Table 4. None of these enterprises were bankrupt as defined in Articles 570-823 of the Commercial Law No. 32/1991. Yemen had no fixed timetable for the completion of its privatization process.

33. Privatization was carried out pursuant to Article 5 of Law No. 45/1999 by offering shares for public subscription; partial or complete sale to the employees; sale of assets or components; capital and operational partnerships; management contracts and leases; sale of State-owned shares in the mixed sector, provided this did not contravene laws or create monopolies; and, denationalization or return of State-owned units to the previous owners.

34. All privatizations involving either a partial or full transfer of ownership were subject to the Council of Ministers' approval. The Supreme Committee for Privatization - chaired by the Prime Minister and comprising the Ministers involved in privatization and the Technical Privatization Office (TPO) - had been established to ensure that privatization procedures were standardized, transparent, neutral and non-discriminatory. The TPO provided technical information and inputs (e.g. studies, proposals, design of privatization programmes, tendering procedures and contracts), and was the technical body servicing the Supreme Committee for Privatization.

35. The functions of the Supreme Committee for Privatization included (i) approving studies and proposals to assist decision-making and evaluation of the privatization approach or methods under consideration; (ii) approving executive programmes, documents and contracts drafted in accordance with the privatization procedures or methods specified in Article 5 of Law No. 45/1999. These documents were submitted to the Council of Ministers for final approval; (iii) appointing temporary members to the Executive Board of Directors in enterprises slated for privatization;

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(iv) addressing the financial, administrative and legal aspects of units being privatized; (v) approving proposals for the liquidation, merger or division of units and branches, if this was deemed necessary, and served economic or institutional interests; and, (vi) approving designs of privatization programmes prepared by the TPO, covering all phases of the privatization process from the preparatory phase to the final execution of the project. He added that the tasks and functions of the Supreme Committee for Privatization were being modified in a draft amendment to the Law No. 45/1999.

36. The representative of Yemen said that the TPO published announcements on privatization in "Althowrah" and "14th of October" - two daily newspapers with wide circulation in Yemen - to ensure transparency in the privatization process. The law allowed the publication process to include all mass media, including the Internet. The TPO provided leaflets describing the unit under privatization to potential investors. The TPO also offered potential investors an opportunity to visit and inspect the enterprises to enable the investors to make appropriate bids.

37. The representative of Yemen said that all State-owned enterprises operated on an equal footing with the private sector and on the basis of market forces and principles. In his view, no exclusive rights or privileges within the purview of Article XVII of the GATT 1994 were accorded to any enterprise. Reminded that the obligations of Article XVII of the GATT 1994 applied to all State-owned or controlled enterprises regardless of their privileged trading status, he confirmed Yemen's commitment to Article XVII of the GATT 1994.

38. Responding to specific questions, he added that the Yemen General Corporation for Oil and Gas (GCOG), owned by the Ministry of Oil and Natural Resources, was a State-owned holding company responsible for industry regulation and all imports and exports of crude oil, natural gas and petroleum products. In this respect, the holding company and its affiliates - the Yemen Oil Company, the Yemeni Company for Distribution of Oil Derivatives, the Aden Refinery Company, the Yemen Gas Company and the Yemen Refining Company - held exclusive rights in the exploration, distribution, refining, processing, marketing, importation and exportation of oil, gas and refined petroleum. The holding company was exempt from payment of all customs duties and taxes. Trading in petroleum products was supervised to conserve an exhaustible natural resource and to rationalize its use. Asked how the General Corporation could determine the quantity of imports of crude oil and its derivatives in a transparent, objective and non-discriminatory manner when such goods were competing directly with the products of its affiliates, the representative of Yemen said that the GCOG determined the quantity of crude oil and derivatives required for domestic consumption through market research and in consultation with other institutions and Government bodies.

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Local consumption of petroleum products was forecast annually on the basis of consumption in the previous year, adjusted for the estimated growth (5-10 per cent) in domestic demand. The estimates were forwarded to the Aden Refinery Company, which supplied up to 90 per cent of the petroleum products needed to satisfy domestic demand. The balance was covered by the Marib refinery or through imports. The imported quantity depended on the size of the estimated deficit and available storage capacity. Domestic production was set to expand with two privately-owned refineries in the pipeline. All petrol stations, private or State-owned, purchased petroleum products from the Yemeni Company for Distribution of Oil Derivatives. Importation of petrochemical products was handled by the private sector.

39. Noting that the General Corporation in effect appeared to be controlling the importation of goods competing directly with the output of its affiliates, a Member requested further information on how import needs were determined and the mechanism whereby imports were permitted. This Member suggested that Yemen could consider creating a State-trading enterprise not affiliated with the General Corporation to set import quantities. Yemen was also reminded that a GCOG affiliate, being the sole distributor of derivatives to certain customers, could constitute a State-trading enterprise for the goods involved, in which case Yemen should explain how it ensured imported derivatives equal opportunity to compete with Yemeni derivatives.

40. In reply, the representative of Yemen referred specifically to the importation of diesel and liquefied petroleum gas. The private sector had no incentive to import these petroleum products, as they were sold at prices below world market levels in Yemen. As the two products were subsidized by the Treasury, the Ministry of Oil and Minerals determined the imported quantities in consultation with the Ministry of Finance. The Ministry then assigned the respective GCOG affiliate to purchase and distribute the imports. The decisions on where to source the imports from were based on commercial considerations. The private sector imported non-subsidized petroleum products.

41. Based on the available information, some Members considered the Yemen General Corporation for Oil and Gas a State-trading enterprise in the meaning of Article XVII of the GATT 1994. In response, the representative of Yemen agreed to notify the Yemen General Corporation for Oil and Gas as a State-trading enterprise upon accession.

42. The representative of Yemen confirmed that from the date of accession Yemen would ensure that all State-owned, State-controlled, and other enterprises with special or exclusive privileges would make purchases of goods and services, which were not intended for governmental use, and sales in international trade, based solely on commercial considerations, e.g. price, quality, marketability and availability, and that the enterprises of other WTO Members would have an adequate opportunity in

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accordance with customary practice to compete for such purchases or sales. In addition, Yemen would not influence, directly or indirectly, commercial decisions on the part of State-owned, State-controlled, and other enterprises with special or exclusive privileges, including on the quantity, value or country of origin of any goods purchased or sold, except in a manner consistent with the WTO Agreement. The representative of Yemen confirmed that upon accession Yemen also would notify and provide information on the activities of all State-owned, State-controlled, and other enterprises with special or exclusive privileges in accordance with Article XVII of the GATT 1994 and the Understanding on that Article. The Working Party took note of these commitments.

- Pricing Policies

43. The representative of Yemen said that prices of goods and services supplied by the private sector were governed by market forces and not subject to Government intervention. For goods and services provided by State-owned enterprises, his Government determined the prices of oil derivatives, fixed telephone services and public goods or essential services such as water, sewage and electricity to accommodate the general public and, in particular, the poor and lower-income segments of the population. The legal basis for the price controls on these items was the decree establishing each enterprise. Some products were subsidized, notably oil derivatives, while the prices of other products included a modest profit margin. All consumers paid the same prices for these products.

44. His Government had reviewed the price regulations on petroleum products with a view to further liberalization. The prices of turbine aircraft fuel and fuel oil had been liberalized. By the first quarter of 2010, Yemen had reduced the subsidies and brought the administered prices more in line with international prices, raising the price (per litre) of petrol from YRls 35 to 70; diesel from YRls 17 to 45; kerosene from YRls 16 to 40; and, LPG from YRls 205 to 1,000 per cylinder. All other petroleum products were sold at international market prices. Crude oil had been exported at an average price of US$62.93 per barrel in 2006. Yemen's oil production had declined steadily from 160 million barrels in 2001 to 107 million barrels in 2008. Local consumption of petroleum products had amounted to 5.74 million tonnes in 2008, and exports of oil had totalled 44.45 million barrels.

45. The representative of Yemen confirmed that, from the date of accession, price controls in Yemen would be applied in compliance with Articles III:4 and XI:1 of the GATT 1994 and Article 4 of the Agreement on Agriculture. He also confirmed that Yemen would apply price controls in a WTO-consistent fashion, including by taking into account the interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994. He further confirmed that Yemen would publish the list of goods and services subject to State price control and any changes to this list in its

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Official Gazette and would continue to do so after accession. The Working Party took note of these commitments.

- Competition Policy

46. The representative of Yemen said that Law No. 19/1999 "On Competition Promotion, Monopoly, and Commercial Deception Prevention" provided the legislative basis for promoting competition and preventing monopolistic behaviour and deceptive trade practices in Yemen. The Law excluded from its scope provisional measures taken by the Council of Ministers in emergency or force majeure instances; rights conferred through the protection of intellectual property; the activities of commercial enterprises linked to the Government through valid concession agreements; State monopolies; commercial agencies; and, franchising or licensing agreements with foreign producers.

47. Law No. 19/1999 established a Government authority - the "Anti-Monopoly and Competition Protection Authority" - to define the policies and procedures needed to protect and encourage competition. The Authority could intervene against monopolistic or anti-competitive behaviour in the form of monopolies; cartels; agreements limiting production, trade or competition in various forms; price fixing; collusion etc. Individuals and enterprises could bring complaints against restrictive business practices to the Authority, which would investigate the claims. Having established the merits of a claim, the Authority would approach the Ministry of Industry and Trade to hand over the matter to the general prosecutor for further investigation and action before the court against the perpetrator. He added that a new draft Law "On Monopoly and Anti-Competitive Behaviour" was in preparation.

III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES

- Powers of Executive, Legislative and Judicial Branches of Government

48. The representative of Yemen said that the President was the Head of State in Yemen. The President was elected for seven-year terms. The President, together with the Council of Ministers, exercised executive power in accordance with the provisions of the Constitution. The President endorsed the agreements falling within the jurisdiction of the Council of Ministers. In coordination with the Government, the President set-out State policy and supervised the implementation of the Government's policies.

49. The Council of Ministers was the highest executive and administrative body. Tasks carried out by the Council of Ministers included preparing the Final Accounts Statements, the State Economic

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Plan, the annual public budget, and supervising the implementation of the annual budget. The Council of Ministers was also responsible for drafting laws, decrees, and approving treaties and agreements before submitting them to the House of Representatives or President for ratification and endorsement.

50. The House of Representatives, whose 301 members were elected for six-year terms, was the legislative branch of the State. Pursuant to the Constitution, all laws had to be enacted by the House of Representatives. Members of the House of Representatives approved the Government's economic and social development plans, the annual public budget, the Final Accounts Statements, etc. The President issued the decisions or decrees on treaties and agreements ratified by the House of Representatives. In addition to the House of Representatives, the Shura (Consultative) Council had been established by Presidential Decree and comprised 111 members. Members of the Shura Council were appointed by the President and were neither members of the House of Representatives nor local councils. The Shura Council made recommendations and commissioned studies to assist the Government in drawing up its development strategies.

51. The judiciary was an independent, financially and administratively distinct power. Interference in legal proceedings or any attempt to influence rulings was a criminal offence punishable by law. Judges were nominated by the Minister of Justice, approved by the Supreme Judge Council and appointed by Republican Decree. Judges were required to meet the qualifications stipulated in the Judicial Authority Law No. 1/1990. Courts were responsible for settling all disputes. As set-out in the Judicial Authority Law, courts were divided into Primary Courts, Courts of Appeal and the Supreme Court. Furthermore, Republican Decree No. 378/1999 established Commercial Courts (primary level) and the Departments of Appeal. Commercial Courts were specialized courts handling claims and disputes of a commercial nature while the Civil Courts had general jurisdiction on non-commercial disputes. Judges at the Commercial Courts and the Commercial Department of Appeal were selected on the basis of expertise in commercial law and transactions. Commercial Courts and Appellate Courts were located in Sana'a and in the cities of Aden, Taiz, Mukalla and Al-Hudaidah. The mandate of these courts extended to all the Governorates in Yemen.

52. The Civil Procedure and Enforcement Law No. 40/2002 governed the filing, processing, adjudication, appeal and enforcement of civil and commercial cases. Enforcement of civil cases was carried out through fines, detention, seizure, receivership, etc. Public authorities were obliged to assist in the enforcement of court rulings. Criminal cases were prosecuted in the Primary Courts and appealed in the Courts of Appeal as stipulated in Republican Decree Law No. 13/1994 "On Criminal Procedures". Civil and criminal case rulings could be appealed within 60 days of the court's decision through petitions for reconsideration; and, cassation through appeals in the Supreme Court.

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The rulings of the Supreme Court were final. The time required by a court to reach a final decision depended on the nature of the case; Article 243 of the Civil Procedure and Enforcement Law provided for expedited procedures in urgent cases.

53. Arbitration was conducted in accordance with Republican Decree Law No. 22/1992 "On Commercial Arbitration" and enforced in line with the procedures and provisions of the Civil Procedure and Enforcement Law. The recourse to arbitration could be stipulated in the written contract between the parties or be concluded in a separate written agreement. The agreement to refer a matter to arbitration was binding, and implied that the parties waived their right to resort to the court system. The parties to the dispute chose the members of the arbitration panel, which could hold hearings or seek expert opinions before issuing its decision in writing. Arbitration decisions were binding and enforced by the courts pursuant to Article 58 of Decree Law No. 22/1992. He added that a new Law "On Arbitration" was being considered by the House of Representatives.

54. In accordance with the Constitution, Yemen's accession to international agreements or conventions required the endorsement of the Council of Ministers, approval in the House of Representatives, and Presidential ratification. The President would ratify the agreement and issue a law or decree, which would be published in the Official Gazette. The provisions of international agreements approved by the House of Representatives and ratified and signed by the President were considered part of the domestic law. His Government implemented the ratified international agreements by deploying the same mechanisms and instruments available to implement domestic laws. As outlined in the provisional legislative action plan (document WT/ACC/YEM/9 and its Revisions), domestic ratification of the WTO accession package was expected to take up to six months.

55. In reviewing the action plans, a Member noted that Yemen did not foresee enactment of WTO-consistent legislation in a number of areas until after WTO Membership. Yemen was requested to enact the legislation needed to bring its trade regime in conformity with WTO requirements by the date of accession even if full implementation of certain WTO obligations, and entry into force of legislation was over a transitional period outlined in the relevant action plans. The representative of Yemen replied that Yemen planned to enact WTO-compliant legislation by the date of accession. Implementation would be phased in over transition periods as specified in the relevant action plans.

56. The Ministry of Industry and Trade was responsible for formulating and implementing Yemen's trade policies. Other relevant Ministries and agencies were the Ministry of Planning and Development; the Ministry of Finance; the Customs Authority and Taxation Authority, supervised by the Ministry of Finance; the Central Bank of Yemen; the Ministry of Agriculture and Irrigation; the Ministry of

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Fisheries; the Ministry of Tourism and Environment; the Ministry of Communications; the Ministry of Public Health and Population; the Ministry of Social Affairs and Labour; the Ministry of Culture; and, the Ministry of Transportation and Maritime Affairs.

57. The representative of Yemen confirmed that the current Constitution, laws and regulations provide the necessary institutional base for the prompt administrative and judicial review of the Government's actions. He further confirmed that from the date of accession Yemen's laws would provide for the right to appeal administrative rulings on matters subject to WTO provisions to the courts or other independent tribunals in conformity with WTO obligations, including those set-out in Article X of the GATT 1994, Article 23 of the Agreement on Subsidies and Countervailing Measures, Article 11 of the Agreement on Implementation of Article VII of the GATT 1994, Article 62 of the Agreement on Trade-Related Aspects of Intellectual Property Rights and Article VI of the GATS. The tribunals or procedures would also include actions relating to the implementation of national treatment, conformity assessment, the regulation, control, supply or promotion of a service, including the grant or denial of a licence to provide a service and other matters. The tribunals or procedures responsible for such reviews would be impartial and independent of the agency entrusted with administrative enforcement and would not have any substantial interest in the outcome of the matter. The review procedure would include the opportunity for appeal, without penalty, by individuals or enterprises affected by any administrative action subject to review. Notice of the decision on appeal would be given to the appellant and the reasons for such a decision would be provided in writing. The Working Party took note of these commitments.

- Authority of Sub-Central Governments

58. The representative of Yemen said that the Local Councils Law No. 4/2000 outlined the authority of the central government to draw up general policies; formulate rules and regulations; train, supervise and implement nation-wide projects; and, upon request, to implement projects local councils found difficult to execute. He stated that the central government had full control and powers to implement the requirements of the WTO Agreements. The central government retained the authority to impose taxes, investment regulations, and the granting of benefits, and local authorities had no jurisdiction on these matters. Sub-central authorities did, however, have jurisdiction on land allocation and zoning decisions.

59. The representative of Yemen confirmed that, upon accession, Yemen would apply WTO provisions and Yemen's Protocol of Accession uniformly throughout the entire customs territory, including in special economic zones, and other areas where special regimes for tariffs, taxes and regulations were established. He further confirmed that when appraised or alerted of a situation

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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 Working Party took note of these commitments.

IV. POLICIES AFFECTING TRADE IN GOODS

- Trading Rights

60. The representative of Yemen said that all natural or legal persons wishing to engage in importation were required to register with the General Directorate for Commercial Registration under the Ministry of Industry and Trade. Exporters were also required to obtain a Commercial Registration Permit (Export Category) from the branches of the Ministry of Industry and Trade to engage in export activities. Decision No. 314/1996 outlined the commercial registration requirements for importers and exporters. The registration fee set-out in Decision No. 57/2009 depended on the legal form of the registered entity, i.e. joint-stock company (YRls 50,000); joint liability company (YRls 20,000); limited partnership with shares (YRls 20,000); limited partnership (YRls 15,000); and, agency or branch of a foreign company (YRls 60,000). The fee covered a period of five years and re-registration was automatic upon payment of the same fees. These and other fees in connection with importation are discussed further in the section on "Fees and charges for services rendered" and Table 9.

61. In his view, the registration requirements for importation and exportation were simplified, inexpensive and a convenient regulatory requirement. The registration procedures could be completed within one week. The application and supporting documents were submitted to the General Directorate for Commercial Registration or to the Registration Departments at the Ministry of Industry and Trade's Governorate offices. For individual traders or natural persons, supporting documents included a copy of their Yemeni ID card or passport; proof of fixed premises in Yemen; and, possession of a municipal commercial licence (a business licence not specifically related to importation and exportation). Commercial companies (partnerships, limited liability, joint-stock companies, etc.) were required to submit a copy of their Articles of Association; and, the Memorandum of Association (for joint-stock companies). A Ministerial Decision on the registration of the firm was subsequently issued. The Minister's approval of the establishment of a firm for importation was obtained by submitting an application together with copies of IDs or passports of the company's founders; a bank certificate declaring the capital assets; and, the firm's Articles and Memorandum of Association. He stressed that a trading company registered only once to practice all the activities described in its memorandum of association and articles of association. Renewal of commercial registration was automatic and did not require ministerial approval.

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62. Asked whether every business operating in Yemen needed registration and had its registration approved by a Minister, and whether Yemen had any intention to streamline its commercial registration procedures to make them less burdensome for importers and investors, the representative of Yemen said that the establishment of a joint-stock company required a decree issued by the Prime Minister and, when the underwriting had been completed, a ministerial decree to allow the company to commence operation. Limited liability companies and closed-stock companies also needed to obtain a ministerial decree, while joint liability companies and limited partnerships did not need a ministerial decree for commercial registration.

63. Concerning the right to engage in importation or exportation, the representative of Yemen said that Yemeni nationals had the right to import for commercial use. Although Yemen recognized the distinction between the right to import and the right to distribute goods, a non-resident entity was not permitted to register as an importer of record (Article 11 of Commercial Registrar Law). A foreign company wishing to engage in import operations would need to establish a Yemeni company or appoint an agent based in Yemen. Foreign-owned enterprises established in Yemen had the right to import products related to their activities.

64. Several Members questioned Yemen's policy to reserve importation for Yemeni nationals. In addition, the requirement that an importer be a Yemeni resident went against the fundamental right of the WTO to import goods without investing in a member country. Article III of the GATT 1994 required imported products to have access to the same channels of distribution as domestic like products with no requirements or conditions imposed on such importation unless also applied to like domestic products. Yemeni products appeared to be sold directly to consumers. Article XI of the GATT 1994 conveyed upon natural and legal persons of any WTO Member the right to trade with any natural and legal person of any other WTO Member. The practice of limiting importation and exportation rights to Yemeni natural and legal persons explicitly discriminated against natural and legal persons of other WTO Members, limited the competition in trade in goods, and created a de facto quantitative restriction on trade. The physical presence requirement appeared to be an onerous condition going beyond what was permitted under Article XI of the GATT 1994. Yemen's policy would need to be altered to reflect Articles III and XI of the GATT 1994. Some Members also noted that the registration fees for importation and exportation did not seem to reflect the costs of services rendered. Although the registration requirements were the same for all types of commercial companies, the fees were not identical, being highest for agencies or branches of a foreign company. Yemen was urged to bring its registration fees into conformity with Articles III and VIII of the GATT 1994 and set them to the level reflecting the services rendered regardless of the nationality and legal form of the companies concerned.

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65. The representative of Yemen replied that measures restricting the importation of goods to Yemeni nationals or companies established in Yemen were applied across-the-board to encourage Yemeni nationals and enterprises to engage in economic activities. In his view, physical presence was required to ensure the payment of taxes, compliance with import regulations, consumer protection, and the provision of after-sale services in Yemen. However, his Government was reviewing its trading rights regime and the commitments to be undertaken in this area. In this regard, Article 28 of the Commercial Law had been amended to eliminate the 49 per cent cap on the foreign share in a trading enterprise and thereby allow foreigners to establish a trading company without a Yemeni partner. As for the registration fees, his authorities had revised the fees (Decision No. 57/2009) to ensure conformity with WTO requirements. He said that the fees did not discriminate based on nationality and the higher fees for branches of foreign companies reflected additional costs incurred (e.g. for verifying documents written in foreign languages and for coordinating with the relevant agencies before approval to open a branch could be granted). The representative of Yemen presented an action plan in document WT/ACC/YEM/24 and its revisions and requested a transition period and technical assistance to introduce or amend legislation, enhance the capacity of institutions and develop mechanisms to implement Yemen's commitments on trading rights.

66. A Member requested Yemen to update the action plan to elaborate on (i) the legislation to be adopted or amended; (ii) the specific changes envisaged in the new or amended laws and regulations to bring Yemen's trading rights regime in line with WTO requirements; and, (iii) the status and timeframe for implementing these changes. Legislation restricting the technical clearance and the right to import to Yemeni nationals, prohibiting non-residents from registering as an importer of record, the local presence requirement to import or export, and the Ministerial Decision for the commercial registration of businesses were specifically identified for redress and inclusion in the action plan. Some Members considered the measures needed to bring Yemen's trading rights regime into conformity with the WTO Agreement to be a fundamental obligation to be undertaken without recourse to a three-year implementation period.

67. In reply, the representative of Yemen presented a revised action plan in Table 5 for the period 2010 to 2014. A transition period and technical assistance were requested to study and develop an appropriately designed registration system. Alternatives were being explored to allow non-resident entities to register without local presence. An Importers of Record Registration Code and Product Liability Code would be introduced. The system for registering importers of record would be developed and legislation would be drafted or amended, as necessary. He said that the requirements of physical store or Yemeni nationality stipulated in Article 11 of the Commercial Registrar Law No. 33/1991; Article 15 of Decree No. 10/2002 (implementing Law No. 25/1999 "On Organization

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and Dealing with Plant Pesticides"); and, Article 5 of Decree No. 333/2004 "On the Regulation for Manufacturing and Trading in Drugs and Medical Appliances" had been eliminated. Similar requirements in Article 1 of Decree No. 314/1996 "On Awarding Commercial Registrar" and Article 85 of Decree No. 49/1993 (implementing Law No. 25/1995 "On Journals and Publications") would be removed. He added that the staged implementation of the action plan would equalize the treatment of foreigners and locals with respect to the right to import. Full rights to trade would be granted in a non-discriminatory and non-discretionary manner, and that any registration requirements would be for record-keeping purposes only, and would not constitute a barrier to trade.

68. The representative of Yemen confirmed that by 31 December 2014, in accordance with the Action Plan in Table 5, Yemen would grant any natural or legal person of a WTO Member, regardless of physical presence or investment in Yemen, the right to be the importer of record of any product allowed to be imported into Yemen, including the right to be granted technical clearance as described in paragraph 105. Yemen's laws and regulations relating to all fees, charges and taxes levied in connection with such trade, including fees as described in paragraphs 60 and 106 and in the Action Plan in Table 9, would conform fully with its WTO obligations, including Articles VIII:1(a), XI:1, and III:2 and 4 of the GATT 1994. He also confirmed that, in accordance with Yemen's legislation and in conformity with WTO rules, Yemen would grant the right to import and to export in a non- discriminatory and non-discretionary manner pursuant to the Action Plan set out in Table 5 and no later than 31 December 2014. Any requirements for commercial registration or application for trading rights would be for customs and fiscal purposes only, and would not require investment in Yemen. He also expressed his understanding that the granting of trading rights would not affect the rights of Yemen to adopt regulations consistent with the WTO Agreement, including those relating to import licensing, technical barriers to trade or sanitary and phytosanitary measures. The Working Party took note of these commitments.

Table 5: Action Plan for Implementing the Trading Rights Commitment

Action to be Taken Time-frame Remarks Details Update Search, study and 2012-2013 Technical assistance is Few countries' examine a system required i.e. study systems have been of registration of tours, orientation on identified and are importers of similar systems, being examined for records. exposure to guidance in experiences of other Yemen's case. countries, etc. A draft system is expected to be identified by mid-2013.

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Action to be Taken Time-frame Remarks Details Update Study the impact of 2012-2013 Funds to finance such a system on conducting studies, various issues such bringing in experts in as tax collection, the fields, etc. enforcement of measures related to imports, customer welfare, market stability, etc. Drafting and By the date of Currently the issuing the accession following legislation necessary are identified to be legislation changes amended: to allow for the implementing of the - Law No. 33 of Amend Article has been new system. 1991 "On Article 11 to amended. Commercial eliminate the Registrar"; requirement of stores for the applicant for registration. - Ministerial Decree Amend Article 1 By the date of No. 314 of 1996 to eliminate the accession "On Awarding requirement to Commercial be Yemeni. Registrar"; - Republican Decree Amend By the date of No. 49 of 1993 "On Article 85 to accession the Executive eliminate the Regulation of Law requirement to No. 25 of 1990 'On be Yemeni. Journals and Publications'"; - Ministerial Decree Amend Done (Republican No. 10 of 2002 "On Article 15 to Decree the Executive eliminate the No. 192/2010) Regulation of Law requirement to No. 25 of 1999 'On be Yemeni. the Organization of the Dealing with Plant Pesticides'"; and - Prime Minister's Amend Article 5 Done (Ministerial Decree No. 333 of to eliminate the Decree 2004 "On the requirement to No. 39/2010) Regulation of be Yemeni. Organizing the Manufacturing and Trading of Medical Appliances".

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Action to be Taken Time-frame Remarks Details Update Legislation to be introduced:

- Product liability By the date of Code. accession

- Importers of By the date of Record accession Registration Code. Enhancing the 31 December 2014 Technical assistance is capacity of agencies required to enhance in charge of the capacity of implementation of concerned agencies in such commitments all aspects of i.e. customs importation authority, standard organization and in and metrology particular organizing authority, Ministry the importation of of Industry and record. Trade, etc.

A. IMPORT REGULATIONS

- Ordinary customs duties

69. The representative of Yemen said that Yemen had liberalized trade unilaterally with tariff reduction and simplification a key component of the trade reforms. All tariffs were ad valorem with a weighted average tariff rate of 10.5 per cent. Customs duties were calculated on the c.i.f. import value. In July 2005, Yemen had issued Tariff Law No. 41/2005, reducing the numbers of tariff bands from four to three (5, 10 and 25 per cent). The distribution of tariff items and the share of imports in the bands is presented in Table 6. Yemen applied seasonal tariffs on certain agricultural products, including apples, which were subject to an additional duty of 35 per cent between April and September. Yemen was applying the 2002 version of the Harmonized Commodity Description and Coding System (HS) pursuant to the Tariff Law No. 41/2005.

Table 6: Tariff Rate Distribution

Tariff Rate Number of Items (HS) Percentage of Items Share of Import Value (per cent) (2006) 0 82 1.4 13.2 5 4,417 73.0 67.6 10 1,285 21.2 17.3 25 265 4.4 1.9 Total 6,049 100 100 Source: Customs Authority of Yemen.

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70. The Tariff Council considered proposals to amend the tariff rates and made recommendations to the Cabinet. Proposals approved by the Cabinet would be forwarded to the House of Representatives for ratification and enacted into law by the President. Article 24 of the Investment Law No. 22/2002 allowed tariffs to be imposed or increased to protect domestic production.

71. Some Members stressed that Article 24 of the Investment Law No. 22/2002 providing for tariffs to be imposed or increased on imports competing with domestic production relying on local inputs was WTO incompatible, and urged Yemen to amend or abolish this provision of the Law. In response, the representative of Yemen said that Yemen had never applied this provision thus far. He confirmed that as a WTO Member, any future resort to this provision would be within Yemen's bound rates and its obligations under the relevant WTO rules. He added that the new Investment Law No. 15/2010 contained no such provision and this, in effect, amounted to the annulment of Article 24 of Law No. 22/2002.

- Other duties and charges

72. The representative of Yemen said that the governorates collected YRls 10 per package arriving by land or sea, and YRls 20 per package at airports, to finance economic and social plans and projects. In addition, consignments entering Yemen by air, land or sea were subject to a charge of YRls 1 per package for the benefit of the "Heritage and Cultural Development Fund". Yemen also levied YRls 1 per pack of imported cigarettes to fund the "Illiteracy Eradication and Adult Learning Agency". Pursuant to Law No. 2/2002, YRls 100 was collected for each customs declaration form as a contribution to the "Handicapped Care and Rehabilitation Fund". These charges are listed in Table 7.

73. Asked whether the fees for the "Heritage and Cultural Development Fund" and the "Illiteracy Eradication and Adult Learning Agency" were taxes for fiscal purposes rather than fees and charges connected with importation, he said that the charges listed in Table 7 were levied on imports only and were distinct from the fees collected on both domestic and imported products (Table 11). Collection of certain fees through the taxation authority did not, in his view, denote that the fees were taxes for fiscal purposes, but reflected an administrative arrangement to facilitate collection on behalf of the beneficiaries.

74. Members encouraged Yemen to bind its other duties and charges within the meaning of Article II:1(b) of the GATT 1994 at zero upon accession.

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75. The representative of Yemen confirmed that, from the date of accession and in accordance with its Goods Schedule, Yemen would bind other duties and charges within the meaning of Article II:1(b) of the GATT 1994 at a rate of 0.25 per cent. He further confirmed that no later than four years from the date of accession, the bound rate for these other duties and charges would be zero as provided for in its Goods Schedule. The Working Party took note of these commitments.

- Tariff rate quotas, tariff exemptions

76. The representative of Yemen said that the Qura'an, bank notes, un-circulated coins (except gold coins), traveller's cheques, and serial numbered stocks and bonds were exempt from custom duties. Tariff exemptions were also provided in accordance with the Customs Law No. 14/1990 for (i) donations and contributions to the Government, local councils, NGOs and social charity associations, subject to specific conditions and procedures; (ii) personal effects imported by members of diplomatic missions, in accordance with international agreements; (iii) trade samples; (iv) local and foreign investment projects, in accordance with the Investment Law No. 22/2002; (v) fishery and agricultural inputs, equipment, machinery, and spare parts used in agriculture and fisheries; (vi) machinery, equipment, tools, materials and products imported by the Ministry of Agriculture and Irrigation for use in governmental infrastructure projects and rural development. Customs duty exemptions could be provided for projects related to general agricultural services, subsistence farmers, and agricultural cooperatives; and, (vii) products imported under agreements with international organizations and bilateral donors. The Yemen General Corporation of Oil and Gas was also granted full exemption from custom duties and taxes.

77. A Member sought further detail on the agricultural and fisheries projects exempt from customs duties, how exemptions were applied, and whether they were made contingent in any way on domestic production or exports.

78. The representative of Yemen said that tariff exemptions were provided for machinery, tools, materials, and inputs used by associations and cooperatives supervised by the Ministry of Agriculture and Irrigation and the Ministry of Fisheries, as well as to investment projects in these areas. The exemptions were granted without precondition based on domestic production or exportation and were, in his view, in conformity with WTO Agreements.

79. Some Members noted that Yemen did not apply tariff rate quotas but sought to reserve the right to apply them to sensitive products, and requested more specificity. A Member urged Yemen to reconsider any notion of introducing tariff quotas on accession. In reply, he said that no decision had

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been taken and that Yemen currently had no intention to use tariff-rate quotas. Any future resort to such a system would conform to the relevant WTO provisions.

80. The representative of Yemen confirmed that from the date of accession any tariff rate quotas, if introduced in the future, would be applied and administered in conformity with WTO rules and regulations, including most-favoured nation and national treatment provisions. The Working Party took note of this commitment.

- Fees and charges for services rendered

81. The representative of Yemen provided information on currently applied fees and charges for services rendered on imports (Table 8), notably for (i) customs declarations; (ii) publication fees for customs declaration forms, overtime forms, and forms for the customs processing of vehicles; (iii) overtime fees; (iv) warehousing; (v) quarantine services; (vi) veterinary certificates; (vii) laboratory examinations; (viii) conformity assessment certificates; (ix) import permits for various goods; and, (x) miscellaneous service charges.

82. Some Members noted that many of the fees charged by Yemen were either ad valorem or weight- or quantity-based in a manner that did not reflect the cost of services provided. In particular, Yemen was asked to explain how the ad valorem fees for quarantine services on imported dog and cat food, and drugs, vaccines and antiseptics used in animal feedstock (1 per cent); goods in warehouses (3 per cent); and, the import licence fees for explosives and fireworks, pesticides, drugs and medical appliances, were related to the cost of the services provided. An explanation was also sought for the wide differences in fees to issue assessment certificates for "goods subject to accredited standards" (YRls 10,000-200,000), and why import licenses for cinema films and video films and cassettes cost twice as much as import licenses for publications, stationery, audio tapes and CDs. A Member considered high fees for goods in warehouses and the service fees for handling parcels to be non-tariff barriers, and requested Yemen to consider consolidating or eliminating these fees. Another Member noted that Article 25 of the Investment Law No. 22/2002 indicated that higher fees and charges applied to imported goods comparable to locally-produced goods, than to other goods. This requirement was WTO-incompatible and Yemen was urged to abolish it.

83. The representative of Yemen stated that the fees and charges levied were needed by the responsible entities to finance their activities and carry out the duties assigned to them. The current fees for quarantine services covered the costs of processing applications, port inspection and examination, and the issue of permits and relevant documents. The amount of work required to issue assessment certificates could vary significantly depending on the nature and size of the imported

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consignments. The import permit fees for books and printed materials had been reduced to serve public policy objectives. He said that the fees for goods in warehouses covered customs services, including sorting, inventory, supervision and late payment of due fees; and, the service fees for parcels covered the costs of the services provided in customs yards or warehouses. On the higher fees levied pursuant to the Investment Law, he said that the new Investment Law No. 15/2010 contained no such provision, and that the new legislation, in effect, annulled Article 25 of Law No. 22/2002. He added that Yemen was in the process of revising its import permit fees, quarantine service fees and other fees and charges to approximate the costs of the services rendered and needed a transition period to ensure conformity with WTO requirements.

84. A Member requested further details on the specific steps Yemen was taking to bring its fee structure in line with WTO requirements. Noting Yemen's request for a transition period, this Member sought information on the obligations of Article VIII of the GATT 1994 that Yemen believed it could not implement by the date of accession. A request for a transition period should be accompanied by an action plan outlining the precise steps and time periods needed for staged implementation. Information was sought on the specific legislation to be amended and the dates by which these amendments would take effect for each fee. Yemen was also asked to identify in its action plan, the specific fees that it could not bring in line with WTO requirements by the date of accession. For those fees where legislation had already been amended, or was in the process of being amended, Yemen was requested to bring these fees in line with Article VIII by the date of accession.

85. In reply, the representative of Yemen said that a transition period was requested to review and study appropriate alternatives, put forward proposals to replace some of the existing fees, and amend procedures or enact legislation, where necessary, to bring Yemen's fees and charges in compliance with WTO rules. The charges on goods subject to accredited standards (one per thousand of the consignment value) had been replaced by specific fees to reflect the costs of services rendered (Decree No. 9/2009 "On Regulation of Examination Services and Inspection Fees" and YSMO Regulation "On Inspection Charges Levied on Imported Goods"). Fees for goods in warehouses (3 per cent) would be replaced by specific fees in line with Article VIII of the GATT 1994 by January 2013. The annual warehousing fees would be YRls 500 per square metre of storage space or YRls 20 per kilogram for special warehousing. Storage of duty free goods would be at the annual rate of YRls 6 million. The ad valorem import permit fees for drugs and medical appliances would be substituted by cost based specific fees by January 2013; and, the fees for plant pesticides, explosives and fireworks would be replaced by January 2014. The quarantine services fees on imports of dog and cat food (1 per cent), ornamental fish and birds (2 per cent), and drugs, vaccines and antiseptics (1 per cent) would be replaced by specific fees reflecting the costs of the services rendered by

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January 2013. These fees would amount to YRls 7,000 for each consignment of dog and cat food, and ornamental fish and birds; and, YRls 10,000 for drugs, vaccines and antiseptics.

86. The representative of Yemen confirmed that, consistent with the Action Plan set-out in Table 9, Yemen would bring its fees and charges in connection with importation or exportation into compliance with Articles VIII and X of the GATT 1994, with full compliance occurring no later than the conclusion of the transition period. To this end, laws and regulations during the transition period would not be implemented in a manner that resulted in a lesser degree of consistency with Article VIII of the GATT 1994 than on the date of accession. He further confirmed that, during this transitional period, Yemen would ensure that its laws and regulations concerning fees and charges for services rendered would be applied in a manner consistent with other provisions of the WTO Agreement, including on a non-discriminatory basis consistent with Articles I and III of the GATT 1994. He also confirmed that any new laws and regulations governing fees in connection with importation or exportation established after accession, as well as any revisions made to existing fees after accession, would be in conformity with WTO provisions, including Article VIII, and accordingly would not introduce or reintroduce any fees or charges for services rendered that were applied to imports or exports on an ad valorem basis. The Working Party took note of these commitments.

Table 9: Action Plan for the Implementation of Article VIII.1 of the GATT 1994

Ad valorem Fee to be Replaced New Specific Fee Timeframe Fee for assessment certificate for goods Specific fees applied in accordance with Done subject to accredited standards YSMO Regulation "On Inspection Charges Levied on Imported Goods". Fee for commercial registration of Joint-stock company (YRls 50,000); Done importers and exporters Joint liability company (YRls 20,000); Limited partnership in shares (YRls 20,000); Limited partnership (YRls 15,000); and Branch of a foreign company (YRls 60,000). Fee for goods in warehouses Annually YRls 500 per square metre or January 2013 YRls 20 per kilogram for special warehousing. YRls 6 million annually for duty free warehousing. Import licence fee for analysing and US$200 for batch whose value equals or January 2013 control of imported or locally exceeds US$10,000; and US$100 for every manufactured pharmaceutical and batch less than US$10,000. medical appliances with specific fee US$100 service fee for issuing an import licence for medical appliance for every invoice bill. Import and export licence fee for plant YRls 20,000 per permit. January 2014 pesticides Fee for quarantine services for drugs, YRls 10,000 for each consignment of drugs, January 2013 vaccines, antiseptics, etc.; ornamental vaccines, antiseptics. fish and birds; and dog and cat food YRls 7,000 for each consignment of ornamental fish and birds. YRls 7,000 for each consignment of dog and cat food.

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Ad valorem Fee to be Replaced New Specific Fee Timeframe Import licence fee for explosives and YRls 100,000 per permit for explosives and January 2014 fireworks fireworks.

87. Members asked about fees imposed by Yemen for notarization or consularization of documents. In response, the representative of Yemen stated that the only such fees currently imposed were for the authentication of certificates of origin and of invoices by Yemeni Consulates. This was a general requirement imposed pursuant to the Council of Ministers' Decision No. 253/2003 "On Consular Fees". Yemeni consulates were authorized to charge a fee of US$30 or US$50 per document to authenticate invoices and certificates of origin and for consularization. Fees collected by the Consulates were used as a revenue source by the Consulates. Members noted that the requirement posed difficulties for exporters not operating from areas served by consular offices and duplicated similar reviews conducted by Customs officials in Yemen at the time of importation. They pointed out that revenues from the fees were not related to the cost of the service, and requested that Yemen eliminate the practice. In response, the representative of Yemen stated that Yemen would seek out all available technical assistance to phase-out its requirement that certificates of origin and invoices of imports into Yemen be endorsed or notarized by Yemeni consulates abroad.

88. The representative of Yemen confirmed that the requirement that certificates of origin and invoices of imports into Yemen be endorsed or notarized by Yemeni Consulates abroad will be terminated no later than 1 January 2017. The Working Party took note of this commitment.

- Application of internal taxes to imports

89. The representative of Yemen said that domestically-produced and imported goods and services were subject to the same rate of general sales tax applied pursuant to the Law No. 19/2001 "On the General Sales Tax", as amended by Law No. 42/2005. Most goods and services were taxed at the general rate of 5 per cent with some exceptions and deviations (Table 10). Exported goods and services were zero-rated. Yemen had not established any Value Added Tax (VAT) system.

90. He also provided a list of fees applicable to both imported and locally-produced goods (Table 11). The Customs Authority collected these fees from imported products; while the beneficiaries directly - or through the Taxation Authority - collected these levies from domestically-produced goods. In his view, no discrimination existed between like domestic and imported goods for the purposes of internal taxation.

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Table 10: General Sales Tax

General rate of 5 per cent. Goods and Services subject to other rates: No. Description Tax (per cent) 1. Cigarettes of all types 90* 2. Cigars 90 3. Qat 20* 4. Arms and ammunitions 90 5. Valuable metals of gold and ordinary gold coated metals: (a) half manufactured 2 (b) Jewellery, goldsmithery and other manufactured items 3 6. Mobile telephone services 10 7. International telephone services 10 * Denotes tax as a percentage of consumer sale price.

Goods exempt from General Sales Tax pursuant to Article 40 of the Law: No. Description 1. Wheat and wheat flour 2. Rice 3. Medicines 4. Ore gold 5. Personal effects of travellers coming from abroad 6. Paper money and circulated coins

Services exempted from General Sales Tax pursuant to Article 40 of the Law: No. Description 1. Financial and banking services 2. Insurance services 3. Health services 4. Educational services of all types 5. All not-for-profit services carried out by NGOs, societies and organizations recognized by competent authorities. 6. Internal land transport services, namely: good transport services (except speed carrier services); passenger transport services; and highway maintenance services. 7. Services of renting, operation or exploitation of land and real estate for private housing purposes. 8. Water services (except mineral and bottled water), sewage and electricity. 9. House and street cleaning service; environment services, viz. combating pollution and collection of waste and garbage. 10. Historical monuments reparation services 11. Pilgrims' services (pilgrimage and Omra agencies) 12. One star hotels and below services

91. Asked whether taxes were applied differently on imported products depending on origin, the representative of Yemen said that all products were treated equally irrespective of origin. Goods imported from countries that had bilateral or regional trade agreements with Yemen were subject to the same internal taxes as imports from any other source.

92. The representative of Yemen confirmed that from the date of accession all laws, regulations and other measures relating to internal taxes and charges levied on imports would be in full

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conformity with its WTO obligations, including Article III of the GATT 1994. The Working Party took note of this commitment.

- Quantitative import restrictions, including prohibitions, quotas and licensing systems

93. The representative of Yemen said that imports were prohibited or restricted for environmental, health, national security and religious reasons, i.e. if considered contrary to Shari'a Law. Products subject to import prohibitions are listed in Table 12. In his view, these import prohibitions were consistent with Articles XX and XXI of the GATT 1994. Yemen also prohibited the importation of coffee and mango, and maintained seasonal restrictions on potatoes (other than seed potatoes), tomatoes, lettuce and chicory, oranges, mandarins, lemons, grapes, melons and papayas (Table 13). The seasonal restrictions consisted of periods when importation was prohibited, and "allowed" periods when the goods were subject to an additional duty of 35 per cent over and above the ordinary tariff of 25 per cent. Information on the production seasons, and the domestic production and consumption of these goods was provided in document WT/ACC/YEM/32 (pages 6-7). He confirmed that the import ban on coffee and mango and the seasonal import restrictions on agricultural products (Table 13) would be removed from the date of accession. The Working Party took note of this commitment.

Table 13: Seasonal Import Restrictions

H.S Code Item Prohibition Periods 0701.90 Potato: other than seeds January - September 0702.00 Tomatoes, fresh or chilled January - March, May - November 07.05 Lettuce, etc. March - November 07.06 Carrots, turnip, etc. December - August 0805.10 Oranges October - April 0805.20 Mandarins, etc. October - April 0805.50 Lemons, etc. April - September 08.06 Grapes, fresh or dried May - December 08.07 Melons (including watermelons) January - September and papaws (papayas), fresh

94. Some Members considered the list of import prohibitions (Table 12) to be unduly lengthy and urged Yemen to consider other less restrictive means to achieve the desired objectives. Information was sought on comparable restrictions, if any, on the domestic production and consumption of goods prohibited to import. Noting the import prohibitions affecting certain types of motor vehicles and accessories, Yemen was requested to explain the purpose of these restrictions and provide the legal citation banning the domestic sale of these items.

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95. In response, the representative of Yemen said that local production, use or sale of goods prohibited to import was not permitted. His Government had updated the list of import prohibitions and reduced it to the extent possible. Most of the listed goods in Table 12 were prohibited in accordance with international conventions, i.e. the Vienna Convention on the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer; the Convention on International Trade in Endangered Species of Wild Fauna and Flora; the Stockholm Convention on Persistent Organic Pollutants; the Rotterdam Convention on the Prior Informed Consent Procedure on Certain Hazardous Chemicals and Pesticides in International Trade; and, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. Cars with tinted glass were prohibited to import for safety and security reasons, and the other prohibitions affecting motor vehicles and accessories were road safety and public security measures applied pursuant to Law No. 41/2005 on "Customs Tariff". The domestic sale of vehicles that had already entered the Yemeni market prior to the import ban was allowed.

96. Some Members considered the practice of banning importation but not domestic sale of used, refurbished or re-manufactured machinery with components older than fifteen years to be discriminatory, in breach of Articles III and XI and not justifiable under Article XX of the GATT 1994. Yemen was urged to examine alternatives and consider import licensing to regulate the importation of older machinery with the issue of licenses contingent upon non-discriminatory criteria, enforced equally on sales of similar older machinery within Yemen, e.g. at the point of sale or registration. In reply, the representative of Yemen said that an amendment to Articles 5 and 6 of Law No. 41/2005 on "Customs Tariff" was enacted in June 2012, which had repealed the import ban on used cars, machinery and equipment. A decree setting-out the technical and environmental criteria to be met for the importation of machinery older than 15 years was in preparation. He stated that it would be difficult to apply these criteria to machines already in the country, but Yemen was open to using systems used by other WTO Members to regulate the domestic sale of old machinery. He added that the prohibition on import of special types of cameras and lenses would also be reviewed and could be made subject to licensing requirements.

97. The representative of Yemen said that import licensing had been abolished through Law No. 16/1996 "On Foreign Trade". However, he acknowledged that several Government agencies issued permits and approvals or performed technical clearance in a manner resembling an automatic licensing procedure. Technical clearance required an application in special form(s) or format, clearance was granted within three to seven working days, applications could not be refused for minor documentation or procedural errors, and clearance could be obtained for a product even if it arrived in separate consignments. Existing legislation did not extend an opportunity for other countries to

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comment on new procedures, but Yemen would consider the introduction of such provisions. Information on goods subject to technical clearance is provided in Table 14.

Table 14: Imports Subject to Technical Clearance

Item Responsible Agency Plants and plant products, seeds, seedlings, Ministry of Agriculture and Irrigation fertilizers, pesticides, live animals and animal products, veterinary inputs. Explosives and fireworks. Ministry of Interior Artistic and literary works. Ministry of Culture Magazines and newspapers. Ministry of Information Medicines, medical appliances, narcotic drugs, Supreme Authority for Drugs and Medical psychotropic substances, precursors and chemicals. Equipment (SADME)

98. Notwithstanding the assertion that Law No. 16/1996 had abolished import licensing, some Members noted that the permits, approvals or technical clearances (Table 14) appeared to resemble administrative procedures requiring the submission of an application or other documentation to the relevant administrative body as a prior condition for importation. They considered these (non-automatic licensing) requirements to fall squarely within the purview of the WTO Agreement on Import Licensing Procedures to be maintained only if justified. A Member requested an exhaustive explanation of the legal basis and criteria, including lists of all documents to be submitted and qualification requirements for the applicant/importer, for the technical clearance of seeds and fertilizer, plants, explosives and fireworks, books, newspapers, audio-visual and artistic works, and drugs and medical equipment. Yemen was also asked to explain if it was introducing any provisions to reform its present regulations and to detail how any new provisions would conform to the obligations of the WTO Agreement on Import Licensing Procedures.

99. In response, the representative of Yemen stated that the procedures for issuing import permits were, in his view, consistent with the WTO Agreement on Import Licensing Procedures. He provided information on import licensing procedures in document WT/ACC/YEM/20 and its Addendum 1. According to this information, the import permits for plants and plant products, including seeds, fruits and vegetables were administered pursuant to Law No. 32/1999 "On Plant Quarantine" and implementing Regulation No. 54/2001. The permits were granted by the Ministry of Agriculture and Irrigation (i.e. the General Department for Plant Protection). Permits for accredited plant and seed varieties were granted, upon submission of an application and a supporting document (specifying the type, variety and quantity of plants or seeds), and with the approval of the General Department for Control of Quality of Agricultural Inputs (formerly the General Department for Plant Production). The importation of plant products, including fruits and vegetables subject to seasonal import restrictions (Table 13), required the approval of the General Department for Agricultural Marketing

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and Trade and the General Department for Control of Quality of Agricultural Inputs. Applications, with supporting documents (commercial registration, tax card, and "offer" specifying type, variety and quantity), were accepted during periods when the importation of these seasonally restricted products were allowed. Once approved, the General Department for Plant Protection issued the import permit for plants and plant products, seeds, fruits and vegetables detailing the technical specifications to be met. Import consignments had to be accompanied with documents indicating the terms and specifications (based on international standards and consistent with the terms stipulated in the technical permit), a plant health or seed inspection analysis certificate, certificate of origin, invoices and any other relevant documents issued by specialized international agencies. Permits for plants and plant products, including seeds, fruits and vegetables were valid for three months and could be extended for an additional three months.

100. Permits for imported animals, birds, poultry, animal products and animal health and production appliances were administered pursuant to Law No. 17/2004 "On the Organization and Protection of Livestock" and the implementing Decree No. 1/2006. The permits served to safeguard animal wealth and protect animals and humans from animal-borne diseases and epidemics. The permits were granted by the Ministry of Agriculture and Irrigation (General Department for Animal Health and Veterinary Quarantine) upon submission of an application together with a pro-forma invoice. Import consignments needed to be accompanied by a veterinary certificate, a certificate of origin and a quality conformity certificate from the country of origin. Import permits were valid for 21 days from the date of issue and could be extended, if the need arose, for an additional period of 21 days. Permits could be used for a single shipment only. Asked to explain the short validity period of import permits for animals, birds, poultry, animal products, animal health or production appliances, he said the existing arrangements were deemed appropriate as no complaints had been registered.

101. Import permits for registered fertilizers were granted by the Ministry of Agriculture and Irrigation (General Department for Control of Quality of Agricultural Inputs) pursuant to Law No. 20/1998 "On Seeds and Plant Fertilizers" upon submission of a written request together with an inspection analysis certificate, certificate of origin and invoices. The Ministry of Agriculture and Irrigation (General Department for Plant Protection) undertook the technical clearance of registered pesticides pursuant to Law No. 25/1999 "On Organizing the Circulation of Plant Pesticides" and Decree No. 10/2002. A list of registered fertilizers and pesticides that could be imported was maintained by the General Departments for Control of Quality of Agricultural Inputs and for Plant Protection, respectively. This list would be made available and updated regularly on the website and monthly magazine of the Ministry of Agriculture and Irrigation. Procedures to register fertilizers and

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pesticides were detailed in WT/ACC/YEM/26 (pages 12-13). The volume of imported pesticides was fixed annually to avoid the build-up of stocks and any risk to plant, animal or human health and to the environment caused by waste and the expiry of pesticides. Yemen was asked to explain how the annual amount allowed for import was fixed and to elaborate on any comparable measures in place with respect to domestic products. A Member considered the annual ceiling on the amount allowed to import a quota and urged Yemen to remove this restriction. In reply, the representative of Yemen said that the General Department for Plant Protection set the annual amount of imported pesticides allowed based on the average imported over the last five years, the quantity needed to implement national epidemic and pest control campaigns, and the inventory of imported pesticides remaining in the country. There was no domestic production of pesticides in Yemen. Interested parties could obtain information on the quantity of pesticides permitted for importation within a week. The General Department for Plant Protection would, upon request from importers, also provide quarterly updates of the amount already imported. Permits for fertilizers were valid for three months and could be extended an additional three months, while the permits for pesticides were non-renewable and issued for six months. Asked to explain the limited validity period of permits for pesticides and fertilizers, he said that this was to better administer and utilize the permits issued and to maintain the smooth flow of trade. He stated that eligibility to apply for import permits for pesticides and fertilizers was contingent upon possessing, among other things, a "professional practice permit" available only to Yemeni nationals. Asked to revise the nationality requirement for holding a "professional practice permit" and to consider allowing Yemeni-based persons acquiring the imported fertilizer or pesticide to possess such a permit after importation by a non-Yemeni national, he said that his Government would study the proposal. He added that all persons resident in Yemen - irrespective of nationality - would be required to meet the technical requirements to obtain the "professional practice permit".

102. Clearance to import explosives for development projects and fireworks was granted through the Ministry of Interior to resident natural persons or legal entities pursuant to Law No. 40/1992 "On Regulation of Carrying and Trading of Arms and Ammunitions" and its Regulation No. 1/1994. The import permit served to prevent accidents and safeguard public safety and security. Foreign entities legally established or operating in Yemen could obtain an import permit for explosives through a Decree from the Minister of Interior. Applications were received only from persons with proven experience, physical and mental fitness to deal with explosives, against payment of a permit fee, as well as a medical certificate issued by a Government hospital and a deposit in a Yemeni bank as surety or guarantee to ensure the usage of the explosives and fireworks as prescribed in the permit. Applications could be refused to those having handled explosives previously without a permit. Permits were valid for one year, and renewable. However, Article 40 of Law No. 40/1992 permitted the licensing authority to cancel, amend or suspend granted permits without notice or justification.

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103. Import permits for medicines and medical equipment were regulated by Republican Decree No. 231/1999 "On Reorganizing the Supreme Board for Drugs and Medical Appliances" and the Decree No. 333/2004 "On the Regulation for Manufacturing and Trading in Drugs and Medical Appliances and the Like". Law No. 3/1993 "On Combating Illicit Trade and Use of Narcotic Drugs and Psychotropic Substances" and international conventions (i.e. the Single Convention on Narcotic Drugs; the Convention on Psychotropic Substances; and, the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances) provided the legal basis for import permits on narcotic drugs, psychotropic substances and precursors and chemicals. For the importation of drugs and medical equipment, the importer needed to (i) be registered with the Supreme Board for Drugs and Medical Appliances, which issued the import permit; (ii) be an agent for a drug or medical equipment company; (iii) be a full time pharmacist or hire a full time pharmacist as a technical supervisor; (iv) register with the commercial registrar; and, (v) maintain a store in good condition for the storage of the drugs and medical equipment. Only Government health agencies and Yemeni private entities registered with the Board were granted technical clearance to import pharmaceuticals and medical equipment. He provided details concerning the registration process in document WT/ACC/YEM/10 (page 26). Yemen was invited to consider less trade-restrictive mechanisms to protect the health of its population from improper pharmaceuticals products, for example, by conditioning importation on the requirement that the Yemeni-based person acquiring the imported pharmaceuticals after importation by a non-Yemeni national possess the characteristics (i) through (v) above. In response, he said that his Government would study the proposal.

104. Applications for a permit to import artistic and literary works or magazines and newspapers were submitted to the Ministry of Culture and the Ministry of Information, respectively. In accordance with the Press and Publications Law No. 25/1990, Republican Decree No. 49/1993 (magazines and newspapers) and Republican Decree No. 6/1994 (literary and artistic works), applications were only accepted from Yemeni nationals, and required a copy of the commercial registration, personal ID and address, and a document (i.e. a contract or statement from the publisher) indicating the approval of the publication or distribution company. Foreign individuals residing in Yemen could import publications and artistic works for personal use, but not for commercial purposes. Foreign companies legally established or operating in Yemen, and licensed for importation, could import these items as inputs in their production processes or for commercial sale after obtaining technical clearance. The purpose of the permit was to collect statistical information, prevent forgery or unauthorized use or distribution of creative works, and to ensure that only permitted magazines and newspapers were imported by approved agents. Products violating Islamic values, public order, security and public morals were denied clearance. Permits were valid for one year from the date of issue and could be renewed with an application attached to the original permit.

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105. Some Members noted that only Yemeni nationals could be granted the technical clearance needed to import medicines, medical equipment, fertilizers, pesticides, books, newspapers, audio-visual and other artistic or literary works. They considered this restriction discriminatory and not in conformity with Articles III and XI of the GATT 1994. Yemen was urged to amend its legislation and equalize the treatment of foreign and Yemeni nationals in accordance with WTO requirements. In reply, the representative of Yemen referred to the general requirement to reserve importation for Yemeni nationals or enterprises established in Yemen, and requested a transition period to bring the regime in conformity with WTO requirements (see Section on "Trading Rights"). He added that the treatment of foreign and Yemeni nationals would be equalized as per the timetable set-out in Table 5.

106. The representative of Yemen included information on import permit fees in Table 8. He added that Yemen was revising these fees to ensure conformity with WTO requirements, in particular Article VIII of the GATT 1994, according to the Action Plan set-out in Table 9.

107. The representative of Yemen confirmed that, from the date of accession, Yemen would eliminate and would not introduce, re-introduce or apply quantitative restrictions on imports or other non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements, licensing requirements, and other restrictions having equivalent effect, that cannot be justified under the provisions of the WTO Agreement. He also confirmed that, if balance-of-payments measures were necessary, Yemen would impose them in a manner consistent with the relevant WTO provisions, including Articles XII and XVIII of the GATT 1994 and the Understanding on Balance-of-Payments Provisions of the GATT 1994. He further confirmed that from the date of accession, Yemen would use its legal authority to suspend imports and exports, or to apply licensing requirements that could otherwise restrict the quantity of trade, only in conformity with the requirements of the WTO Agreement. The Working Party took note of these commitments.

- Customs valuation

108. The representative of Yemen said that Yemen's valuation system was based on the Brussels Definition of Value in accordance with the Customs Law No. 14/1990 and its amendments. The existing system allowed importers, upon request, to obtain a detailed written explanation on how the valuation of goods had been undertaken. The Customs Law also provided importers with the right to appeal valuation decisions. Disputes could be resolved by a panel of two experts - one representing the Customs Authority, the other the importer - if so agreed by the parties. However, if the two experts were unable to settle the issue, the dispute would be referred to a three-member committee consisting of a permanent commissioner appointed by the Minister of Finance, one member

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representing the Customs Authority, and one member appointed by the Chamber of Commerce and Industry. The three-member committee's decision was final and binding.

109. Yemen was considering amendments to its customs legislation to ensure conformity with the WTO Agreement on the Implementation of Article VII of the GATT 1994 (Customs Valuation Agreement). Having examined an Explanatory Memorandum of the draft Customs Law and draft amendments to the Customs Law No. 14/1990, a Member pointed out that Yemen's proposed dispute resolution mechanism for customs determinations foresaw referral to a three-member committee comprising of Government-appointed and private members, and that the inclusion of non-governmental representatives in such a committee would violate the WTO requirement to protect confidential information (Article 10 of the Customs Valuation Agreement). Yemen was reminded that Article 11.2 of the Agreement provided importers the right to appeal determinations to an independent judicial authority. It appeared that direct recourse to the judiciary was not provided for and committee determinations could be appealed only when a decision was issued by a majority of its members. Yemen was urged to explain the consistency of the proposed amendments with the requirements of the Customs Valuation Agreement and to limit representation in the committee to Government officials. A Member was also concerned that the timelines laid down in the draft legislation would not provide sufficient time for importers to prepare appeals. In reply, the representative of Yemen said that the amendments to the Customs Law tabled in the House of Representatives would establish a committee consisting of three members, one selected by the trader (importer), one by the Customs Authority, and the third, with a casting vote, chosen by both parties to the dispute. The importer had the right to seek remedy with the judiciary in case of disagreement or at any stage of the appeal. He added that the time available for the preparation of appeals would be increased to 60 days in the new amendments to the Customs Law.

110. Concerning the basis for calculating customs value, a Member noted that the proposed Article 36bis to substitute Article 36 of Yemen's Customs Law was, as currently drafted, too vague and left unlimited discretion to the Prime Minister in determining valuation. The valuation methodologies were not spelt out and it was not clear how the proposed amendments would be consistent with the Customs Valuation Agreement or how it would incorporate the Interpretative Notes in line with Article 14 of the Agreement. Yemen was asked to outline how and when customs legislation and implementing regulations would be enacted to conform to the Customs Valuation Agreement, and was requested to submit any new or additional legislation to the Working Party for review. The representative of Yemen replied that the draft amendments to the Customs Law had been reviewed for consistency with the provisions of the Customs Valuation Agreement and had been

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adopted by the House of Representatives in 2010. Following adoption of these amendments, an implementing Decision on Customs Valuation would be issued by the Prime Minister.

111. Having reviewed a draft of the implementing decree, a Member requested Yemen to update and make specific amendments to the draft to more accurately reflect the Customs Valuation Agreement. Missing elements were identified, including the need for provisions covering Articles 13 through 15 of the Agreement. Yemen's legislation would also need to provide importers with the right to appeal to a judicial authority, receive written notice of any decision on appeal (and the reasons therefore), and be informed of any further appeal rights. Yemen was asked to take steps to reflect these elements and ensure full compliance with the provisions of the Customs Valuation Agreement. In response, the representative of Yemen presented an updated draft to cover the specific comments from Members. He added that Interpretative Notes and definitions, as provided for in Articles 14 and 15 of the Agreement, would be incorporated in the draft Prime Minister's Decision.

112. The representative of Yemen presented an initial action plan in document WT/ACC/YEM/19 and its subsequent Revisions detailing the technical assistance and transitional period requested to fully comply with the Customs Valuation Agreement. Assistance was needed to train officials, install equipment, finalize executive decisions and implementing regulations, and restructure the Customs Authority.

113. While supportive of Yemen's eligibility to seek a transition period for the implementation of the Customs Valuation Agreement, some Members were disappointed with the long time-frame foreseen by Yemen, particularly given the amount of work accomplished and the substantial assistance being made available to Yemen to strengthen its customs valuation framework. A Member noted that other acceding LDCs had been able to implement parts of the Customs Valuation Agreement sooner than others and within the specified transition period, but Yemen appeared to be requesting not to implement any part of the Agreement until the end of the transition period. This Member considered the five year transition period requested by Yemen to implement the Customs Valuation Agreement to be excessive, and recommended that Yemen implement the Agreement no later than 31 December 2013. Yemen was also requested to specify in its action plan those areas that it could implement prior to the end of the transition period and to provide dates certain for the actions to be taken. Members encouraged Yemen to seek out all technical assistance needed and take full advantage of the resources put at Yemen's disposal to implement its accession commitments.

114. Concerns were also expressed on the need to develop a value database during the requested transition period as it could divert scarce resources. A Member reminded Yemen that value databases

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were to be used exclusively as a risk assessment tool and not as a substitute value for imported goods or as a mechanism to establish minimum values. Yemen was asked to clarify what role, if any, the database would play in determination of customs value when the declared invoice value was not accepted. In reply, the representative of Yemen said that the value database would be used in accordance with the provisions of the Customs Valuation Agreement and would serve only as a reference for guidance among other tools to establish import values. It would not be developed explicitly as a list to define prices for valuation purposes.

115. The representative of Yemen reaffirmed his Government's commitment to implement the Customs Valuation Agreement with a transition period and the provision of technical assistance. Noting Yemen's request for technical assistance, some Members stressed that Yemen should not make implementation of the Customs Valuation Agreement contingent on the provision of future technical assistance. The representative of Yemen presented an action plan setting out details of the steps that still remained to be taken to achieve full implementation of the WTO Customs Valuation Agreement and a timetable for each step (Table 15). The representative of Yemen confirmed that during the transition period outlined in Yemen's action plan, Yemen would ensure that its regulations under current legislation in place and additional regulations implemented during the transition concerning customs valuation would be applied on a non-discriminatory basis to all imports. He explained that provisions in the Customs Valuation Agreement relating to currency conversion, the treatment of confidential information, transparency, and the ability for importers to withdraw their goods when the final determination of the customs value was delayed if the importer provided a sufficient guarantee were currently implemented under Yemen's Customs Law, as amended. Any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the Customs Valuation Agreement than existed on the date of accession. Yemen would endeavour to participate in the work of the Committee on Customs Valuation. He added that Yemen would seek out all available technical assistance to ensure that its capacity to fully implement the Agreement upon expiration of the transition period was assured. Amendments to the Customs Law had been adopted in 2010 and the implementing regulation (Decision of the Prime Minister) would be enacted by the date of accession. In line with the Decision of the Prime Minister on Customs Valuation which fully incorporates the obligations of the Customs Valuation Agreement and Annex I of the Agreement which contains the Interpretive Notes to the Agreement, no later than by the date of accession, Yemen would progressively implement the Customs Valuation Agreement in accordance with the Action Plan in Table 15 and that full implementation would accordingly be effective on 31 December 2016. The Working Party took note of these commitments.

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Table 15: Action Plan for the Implementation of the Agreement on Customs Valuation

Objective/Measures/Steps Time-frame Develop amendments/provisions for the Customs Law No. 14/1990 in conformity with Customs Valuation Agreement (CVA)

- Preparation and review of draft Customs Law Done - Adoption by the House of Representatives Done

- Preparation of draft Prime Minister's Decision Done with regard to value for customs purposes - Enactment of Prime Minister's Decision By the date of accession Training on WTO CVA for customs officers 1st to 4th Quarter 2013 Transition from Brussels Definition of Value Adaptation of WTO customs valuation system

Training/Seminars/workshops on WTO CVA for 2012 - 2014 officials, brokers, freight forwarders, customs clearing agents, importers and businesses Articles 1 - 17 of the WTO CVA

Develop implementing regulations once amendments 2012 - 2015 to Customs Law have been issued

Technical training on valuation. Training of Trainers 2012 - 2015 course for selected customs officers Develop an information technology system, including:

- Database for use in risk evaluation 2013

- Reference database on the value of identical or 2012 - 2015 similar goods Training on risk evaluation 2012 - 2015

Training on post-declaration/post-dispatch audits Compliance of importers with customs rules 2012 - 2013 Activation of Distinctive Partners System Full implementation of the WTO Customs Valuation 31 December 2016 Agreement

- Rules of origin

116. The representative of Yemen said that, in accordance with the Customs Law No. 14/1990, the "origin" of goods was the country of production, and the "source" of goods was the country from which the goods had been imported directly. Goods imported from a country other than the country of origin were subject to the tariffs applicable to the country of origin or the country of source, whichever was higher. He added that the applicable tariff rates did not influence or determine the origin of goods. The practice of applying tariffs based on the country of origin or the country of source had been discontinued with amendments to Article 34 of the Customs Law.

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117. As per the Customs Law, the substantial transformation criterion (i.e. change of tariff heading) applied to manufactured goods. The origin of goods manufactured in more than one country was determined on the basis of the value added. In this context, the Minister of Finance Resolution No. 356/1990 established the country of manufacture as the country of origin when the degree of manufacturing or the value of labour and material inputs amounted to not less than 40 per cent of the total cost of production.

118. A certificate of origin and a commercial invoice endorsed by the competent bodies authorized to issue the certificate was required for all products imported into Yemen. However, as established in paragraph 88, the representative of Yemen confirmed that the current requirement for notarization or consularization of certificate of origin and invoices by Yemeni consulates abroad for all imports into Yemen would be terminated no later than 1 January 2017. The certificate of origin, specifying the place of origin of goods, was required for all preferential and non-preferential imports for trade statistics purposes and as a means to verify the origin of the goods. However, this requirement was waived for (i) personal postal packages; (ii) advertising materials and samples of goods of no commercial value; (iii) personal luggage and other belongings brought by tourists or travellers for personal use and within permitted limits; (iv) personal luggage, furniture and home appliances imported by Yemeni expatriates, within permitted limits; (v) books, newspapers, magazines, periodicals and catalogues; (vi) waste from anchored, sunk, or wrecked ships present in Yemeni territorial waters; (vii) grants, donations, presents and assistance received by Yemen; (viii) goods imported by Embassies, High Commissions and Foreign Consulates for official use, and on a reciprocal agreement basis; and, (ix) goods imported by members of the diplomatic corps, or by foreigners working in Yemen for personal use and within permitted limits, on a reciprocal agreement basis. He added that the authority of the Minister of Finance to exempt certain items from the certificate of origin requirements was not discretionary.

119. Yemen had no detailed rules of origin for non-preferential trade. Provisions on preferential rules of origin were contained in Yemen's preferential agreements with the Kingdom of Saudi Arabia and Iraq. Preferential treatment required a minimum of 40 per cent of local value-added in the goods imported under these agreements.

120. Asked to elaborate on Article 35(b) of Yemen's Customs Law regarding the clarifications issued by the League of Arab States, the representative of Yemen said that as Arabic was not an official language of the World Customs Organization (WCO), clarifications issued by the League of Arab States were unofficial translations of documents circulated by the WCO with respect to customs classification and the Harmonized System. Such translations were publicly available. On the

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treatment of the European Union (EU) as one entity for origin purposes, he stated that the EU could be considered as a single entity unless an individual member state had been identified for the origin of the goods.

121. A Member invited Yemen to identify provisions in its legislation providing interested parties a determination of a good's origin prior to importation as required by Article 2(h) and Annex II, paragraph 3(d) of the WTO Agreement on Rules of Origin. Yemen was also asked to clarify provisions in the Customs Law concerning the right to appeal adverse decisions regarding the origin of an imported good. A Member also requested an explanation for a provision in the draft amendments to the Customs Law (Article 28) regarding the tariff treatment of imported goods.

122. The representative of Yemen stressed his Government's commitment to comply with the WTO Agreement on Rules of Origin from the date of accession. On the right of appeal, he pointed to the proposed amendments to the Customs Law allowing disagreements to be referred to a three-member committee or to the judiciary. He said that new rules would be enacted implementing the requirements of Article 2(h) and Annex II, paragraph 3(d) of the Agreement by the date of accession. The Customs Authority would provide, upon request of an exporter, importer or any person with a justifiable cause, an assessment of the origin of the import. The Working Party took note of these commitments.

- Other customs formalities

123. The representative of Yemen said that his Government, in co-operation with the IMF, had facilitated and simplified customs clearance procedures for imports. An electronic automated system (ASYCUDA) had been set up at the Customs Authority Headquarters, Sana'a International Airport, Al-Hudaidah Seaport and Haradh Landport. As a result, time taken for customs clearance had been reduced considerably.

124. Customs declarations were accompanied by a certificate of origin and a commercial invoice, specifying the place of origin of the goods, and endorsed by the Chamber of Commerce or any other body accepted by the Customs Authority. This endorsement verified the origin of the imported good. A Yemeni or Arab Consulate Mission, present in the country or city from which the goods were exported, could endorse such invoices.

125. The representative of Yemen confirmed that by 1 January 2017, Yemen would not require certification or notarization of certificate of origins and invoices by Yemeni consulates in the country

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of export to be provided to Yemeni customs officials at the time of importation into Yemen. The Working Party took note of this commitment.

126. He added that imported goods were released upon examination of accompanying documents and payment of the applicable duties. In case the documents were delayed, an importer could secure release of the goods against payment of the duties proposed by the Customs Authority. The decision would subsequently be verified upon arrival of the documents.

- Preshipment inspection

127. The representative of Yemen said that Yemeni importers could resort to preshipment inspection, but on a private basis and at their own initiative. Concerning inspections by BIVAC and Cotecna on behalf of YSMO (see Section on "Technical barriers to trade, standards and certification"), he clarified that, for those products contained in Table 18, inspections must be conducted by a conformity assessment body (BIVAC and Cotecna) prior to being exported to Yemen. In the case of food products, however, inspections could take place prior to exportation or upon arrival in Yemen. The representative of Yemen further confirmed that such inspections conducted by BIVAC and Cotecna, would fall under the purview of the WTO Agreement on Preshipment Inspection.

128. The representative of Yemen confirmed that Yemen's preshipment inspection requirements were temporary and in conformity with the requirements of the Agreement on Preshipment Inspection and other relevant WTO agreements. Yemen took full responsibility to ensure that preshipment enterprises operating on its behalf comply with the WTO Agreement, including the Agreements on Technical Barriers to Trade, Sanitary and Phytosanitary Measures, Import Licensing Procedures, the Implementation of Article VII of the GATT 1994, Rules of Origin, the Implementation of Article VI (Anti-dumping) of the GATT 1994, Subsidies and Countervailing Measures, Safeguards, and Agriculture. He further confirmed that charges and fees were consistent with Article VIII of the GATT 1994 and that Yemen would ensure that the due process and transparency requirements of the WTO Agreement, including Article X of the GATT 1994, were applied. He also confirmed that decisions by such firms could be appealed by importers in the same way as administrative decisions taken by the Government of Yemen. The Working Party took note of these commitments.

- Anti-dumping, countervailing duties, safeguard regimes

129. The representative of Yemen said that his Government had not resorted to anti-dumping, countervailing, or safeguard measures on imports due to lack of infrastructure and necessary

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mechanisms, including WTO-consistent trade remedy legislation. Although Articles 12 and 13 of the Customs Law No. 14/1990 provided for the introduction of "compensating duties" on subsidized or dumped imports, and authorized his Government to adopt "appropriate measures" against "harmful measures" inimical to the interests of the Yemeni economy, these provisions had never been used. He added that Yemen had introduced a Law "On Protection of Local Production against Unfair Trade Practices" in November 2010. On establishing administrative institutions with appropriately trained staff, he said that a General Department for the Protection of Local Production against Unfair Practices had been set up in the Ministry of Industry and Trade.

130. The representative of Yemen confirmed that, from the date of accession, Yemen would not apply any anti-dumping, countervailing or safeguard measure until it had notified and enacted appropriate laws and implementing regulations in conformity with the provisions of the WTO Agreements on the Implementation of Article VI, on Subsidies and Countervailing Measures, and on Safeguards. He further confirmed that Yemen would ensure the full conformity of such laws and regulations with the WTO Agreement, including Articles VI and XIX of the GATT 1994 and the Agreements on the Implementation of Article VI, Subsidies and Countervailing Measures, and Safeguards. He also confirmed that, after such laws and implementing regulations were enacted, Yemen would apply any anti-dumping duties, countervailing duties and safeguard measures only in full conformity with WTO provisions. The Working Party took note of these commitments.

B. EXPORT REGULATIONS

- Customs tariffs, fees and charges for services rendered, application of internal taxes to exports

131. The representative of Yemen said that Yemen did not levy export duties or taxes. However, as indicated in the list of duties, charges or fees, circulated in document WT/ACC/YEM/11/Rev.1, Yemen applied fees and charges on certain exports, including an ad valorem permit fee of 0.2 per cent on exports of pesticides (Table 16).

132. A Member noted that several export fees were ad valorem or weight- or quantity-based and, in violation of Article VIII of the GATT 1994, did not appear to correspond to the costs of services provided. Yemen was requested to bring all its fees and charges in compliance with WTO rules. In response, he said that Yemen was in the process of revising its fees and charges, including replacing the ad valorem export permit fee on pesticides with a fee of YRls 20,000, as set-out in Table 9. The fees would approximate the cost of services rendered to ensure conformity with WTO requirements, in particular Article VIII of the GATT 1994.

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- Export restrictions

133. The representative of Yemen said that exports were not subject to quantitative restrictions, nor did Yemen apply any voluntary export restrictions, orderly marketing arrangements, or minimum export price requirements. However, an export permit was issued for pesticides and technical clearance was required from the competent authorities for the exportation of (i) fish and marine products; (ii) ingots, coins, gold, silver, platinum, jewels and precious stones inspected by the Yemeni Standardizations and Metrology Organization (YSMO), who issued a certificate of conformity; and, (iii) antiquities and items of historical value (approval of the Ministry of Culture). The technical clearance of exports of fish and marine products aimed at regulating and enforcing safety and inspection measures, and maintaining the reputation of Yemeni fish and marine products in export markets. The technical clearance from the Ministry of Fisheries was granted automatically after the appropriate sanitary certificate had been issued.

134. Yemen was a signatory to the Convention on International Trade in Endangered Species of Wild Fauna and Flora and prohibited the export of endangered plants and animal species. Certain rare birds, flora, fauna and exhaustible materials were also subject to export bans. Export of charcoal was not permitted to prevent desertification and mass felling of trees. Goods subject to export bans are listed in Table 17.

135. The representative of Yemen confirmed that from the date of accession, Yemen would apply its export permit requirements and other export control requirements in conformity with WTO provisions. The Working Party took note of these commitments.

Table 17: Products Subject to Export Ban

Item Reasons for Export Ban Measures Taken to Achieve the Purpose Charcoal Desertification and conservation of Charcoal is not licensed to exit across customs the environment entry points. Rare Birds and Extinction Rare birds and animals are not licensed to exit Animals across customs entry points.

C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS

- Industrial policy, including subsidies

136. The representative of Yemen said that the industrial sector had a potentially important role to play in economic development and generation of employment. Yemen had not developed a full-fledged industrial policy, but had identified some general objectives to encourage and develop the

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industrial sector. These objectives included the development of infrastructure needed for industry; encouraging local and foreign investment in the industrial sector; the development of natural gas reserves for electricity generation; diversifying Yemen's economic and industrial base; establishing industrial projects within and outside free zones, including small and medium-sized enterprises (SMEs); and, establishing industrial zones operating on a build-operate-transfer or other basis.

137. Yemen was also revising its legislation on investment and industrial activities (new Investment Law No. 15/2010 had been adopted replacing Law No. 22/2002); enhancing the investment climate; and, promoting Yemen's SMEs and handicrafts. He added that Yemen was seeking assistance to develop its infrastructure and strengthen the production base in manufacturing, mining and traditional handicraft. His Government was also examining options to promote the industrial sector in conformity with the provisions of the WTO Agreements.

138. The representative of Yemen said that Republican Decree No. 127/1997 had established a Supreme Council for Export Promotion (SCEP) to promote Yemeni exports. A Technical Office (now replaced by a General Directorate for Export in the Ministry of Industry and Trade) serviced and served as the secretariat for the SCEP. The tasks of the SCEP and the General Directorate for Export are detailed in WT/ACC/YEM/23 (pages 10-11). The SCEP studied potential foreign markets, organized trade missions and trade fairs, and provided information to domestic and foreign exporters. Studies on Yemen's neighbouring markets, commissioned by the SCEP, would be an input in his Government's future export policies. Neither the SCEP nor the General Directorate for Export provided any type of financial support to exporters.

139. An import duty drawback scheme had been created through the Customs Law No. 14/1990. Provisions on duty drawback were also included in the amendments of the Customs Law. The duty drawback scheme allowed for partial or complete refund of import duties on raw materials and inputs used in the production of the exported final product. The application of this scheme was based on actual costs and the refund could never exceed the amount of duties actually paid. Requests for duty drawback were evaluated by a technical committee comprising representatives of the Customs Authority, the Ministry of Industry and Trade, the Ministry of Agriculture, or the General Investment Authority. The applicant specified and documented the quantity of raw materials imported throughout the year and the amount of fees and duties paid, and the technical committee conducted field visits to verify the percentage of imported materials used in the exported product. The committee prepared a detailed report, supported by invoices and import records, to ensure that the duty drawback applied only to the imported inputs used in the exported goods. The representative of Yemen stated that, in his opinion, the import duty drawback scheme was operated in a manner

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consistent with the guidelines outlined in Annex II of the Agreement on Subsidies and Countervailing Measures (ASCM).

140. A Member noted that the Investment Law No. 22/2002 included export-contingent and import-substitution or local content subsidies, citing Articles 18, 20, 21 and 26 as some of the provisions that raised concern. Custom duty and tax exemptions were provided under the Law to particular projects for specific periods of time ranging from 7 to 16 years, depending on a variety of factors (e.g., the location of the investment, the level of Yemeni equity participation and the usage of domestic fixed assets). Articles 18(f) and 21(c) of the Law appeared to grant tax and duty exemptions that were contingent upon local content and prohibited pursuant to Article 3.1(b) of the ASCM. Moreover, under Article 26.3, profits from exports were not taxed even after the expiration of the initial eligibility period (i.e. seven to 16 years), provided the foreign currency profits were returned to an authorized bank in Yemen. Yemen was asked to explain how the export contingent incentives granted pursuant to Article 26 of the Law were consistent with Article 3.1(a) of the ASCM. Yemen was also asked to confirm that its duty and tax incentives on fixed assets and production inputs were consistent with Annexes II and III of the ASCM, specifically that the qualifying inputs were consumed in the production of the exported product.

141. In reply, the representative of Yemen stressed that the investment incentives granted pursuant to Investment Law No. 22/2002 were general in nature and did not target any specific industry or enterprise. He, however, acknowledged that subsidies contingent upon exports or the use of domestic over imported goods were "specific" within the meaning of Article 2.3 of the ASCM. He confirmed his Government's intention to notify its subsidy programmes in accordance with Article 25 of the ASCM, and to apply all WTO provisions, including Article 27 of the ASCM. He added that Yemen would be exempt from the obligations of Article 3.1(a) of the ASCM by virtue of the special and differential treatment provisions, including Article 27.2 of the ASCM. He also noted the decisions of the Sixth WTO Ministerial Conference in favour of LDCs.

142. Noting Yemen's reference to the special and differential provisions of the ASCM, the Member nevertheless encouraged Yemen to revise its legislation to eliminate any prohibited subsidies as defined in Article 3 of the Agreement as soon as possible, as Yemen's ability to apply such measures within WTO rules would expire once it was no longer recognized as an LDC. If Yemen could not eliminate such measures from the date of accession, an action plan should be proposed for the gradual elimination of the prohibited subsidies by a date certain. Yemen was asked to identify any subsidies based on local content, and confirm that it would notify to the WTO all specific subsidies, prohibited or otherwise, in accordance with Article 25 of the Agreement, and thus provide data on the

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form, amount, purpose, duration and trade effects of the subsidies. The notification would need to be detailed enough to evaluate all subsidy programmes and guide the discussions for the phasing out of prohibited subsidies. A Member reminded Yemen that the ASCM exempted LDCs from the prohibition of export subsidies, but not from the prohibition of local content subsidies. Yemen was therefore urged not to resort to local content subsidies or should it decide otherwise to specify a transition period to phase-out these subsidies.

143. In reply, the representative of Yemen presented a draft subsidy notification for the period 2002 to 2009 in document WT/ACC/YEM/29. The notification identified some of the tax and duty exemptions provided by Yemen pursuant to the Investment Law No. 22/2002. According to the notification, data concerning the amount of subsidies was unavailable. He also provided an action plan, contained in document WT/ACC/YEM/27 and its Revision 1, for phasing out local content based subsidies (by 2013).

144. A Member noted that the Action Plan did not clearly indicate the specific programmes for which Yemen was seeking a transition period. Moreover, Yemen's subsidy notification (WT/ACC/YEM/29) referred only to the export contingent elements of Investment Law No. 22/2002. Yemen was reminded that Law No. 22/2002 also provided subsidies contingent upon the use of domestic over imported goods that should be notified in accordance with the guidelines contained in Article 25 of the ASCM. Yemen was also requested to provide information regarding the number and nature of companies that were currently receiving benefits under Law No. 22/2002.

145. A Member pointed out that Article 29 of the new Investment Law No. 15/2010 appeared to provide for the continuation of subsidies contingent upon exportation or the use of domestic over imported goods under Law No. 22/2002 for registered investment projects already in operation, or for projects that were in the pipeline and began production within two years of the new Investment Law entering into force. This Member stressed that before any consideration could be given to the request for a transition period, Yemen should clearly identify and fully notify the particular local content subsidies for which it was seeking a transitional arrangement.

146. In reply, the representative of Yemen said that Yemen was no longer requesting a transition period to phase-out its local content subsidies as the new Investment Law No. 15/2010 had eliminated provisions relating to local content based subsidies in Law No. 22/2002. However, investment projects already established pursuant to Law No. 22/2002 would continue to benefit from the tax and duty exemptions granted until the expiration of their original eligibility period under Investment Law No. 22/2002.

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147. A Member asked how Yemen's action plan for phasing out local content subsidies (by no later than 1 January 2013), contained in document WT/ACC/YEM/27 and its Revision 1, was consistent with those local content subsidies established pursuant to Law No. 22/2002 and allowed to continue under Article 29 of Investment Law No. 15/2010. The representative of Yemen stated that none of the local content subsidies established pursuant to Law No. 22/2002 and allowed to continue under Article 29 of Investment Law No. 15/2010 were authorized to continue beyond 2012 according to the original granting provisions for these subsidies under Law No. 22/2002.

148. The representative of Yemen confirmed that by 1 January 2013, consistent with the action plan set-out in WT/ACC/YEM/27/Rev.1, Yemen would cease granting all subsidies contingent upon the use of domestic over imported goods as prohibited by Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures and that the legal basis for providing all such subsidies would expire by 1 January 2013. He further confirmed that no projects registered under Investment Law No. 22/2002 that had not yet begun production at the time of the passage of Investment Law No. 15/2010 would be eligible for such subsidies. The representative of Yemen confirmed that no other provisions in Yemeni law authorized the granting of subsidies contingent upon the use of domestic over imported goods, and that Yemen would not re-introduce such provisions under any other instrument following accession. He further confirmed that, in respect of all other types of subsidies, Yemen would administer its subsidy programmes in full conformity with the WTO Agreement on Subsidies and Countervailing Measures, including Article 27.2 thereof. He also confirmed that, upon accession, Yemen would provide a subsidy notification (including any subsidy benefits provided under Investment Law No. 15/2010 and any specific benefits granted to companies or individuals located in industrial zones and free zones), in accordance with Article 25 of the Agreement, to the Committee on Subsidies and Countervailing Measures. The Working Party took note of these commitments.

- Technical barriers to trade, standards and certification

149. The representative of Yemen said that Yemen was a member of the International Standardization Organization (ISO), the Basel Convention and some regional organizations. International standards, recommendations and guidelines served as a basis for the preparation and application of national standards, technical regulations and conformity assessment procedures. Yemen also used standards issued by the Gulf Standardization Authority as the basis for technical regulations. The Gulf standards adopted by Yemen were based on international standards.

150. Law No. 44/1999 "On Standardization, Metrology and Quality Control", together with its by-laws, had established the procedures for the preparation, adoption and application of standards,

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technical regulations and conformity assessment procedures. In his view, and as highlighted in the TBT checklists (documents WT/ACC/YEM/5 and 22), the principles of the WTO Agreement on Technical Barriers to Trade (TBT Agreement) were covered in the existing legislation. However, full compliance with the TBT Agreement would require technical and financial assistance and an appropriate transition period. He presented an action plan for the implementation of the TBT Agreement in documents WT/ACC/YEM/15 and its Revisions, and elaborated on priorities and specific needs for technical assistance in document WT/ACC/YEM/16.

151. Pursuant to Republican Decree No. 52/2000, the Yemeni Standardization and Metrology Organization (YSMO), a Government body, had been created as a focal point on TBT matters. The YSMO was responsible for the preparation, adoption and application of standards, technical regulations and conformity assessment procedures. The YSMO circulated notifications, responded to enquiries, and provided related documents or information. The YSMO also published newsletters and organized seminars to generate awareness on standards and related activities. The Board of Directors of the YSMO consisted of representatives from the Ministries of Industry and Trade, Finance, Information, Agriculture, Public Works, Higher Education, the Supreme Authority for Medicine, the Federation of Chambers of Commerce and Industry, the General Authority for Environment Protection, and representatives of the YSMO.

152. The YSMO ensured intra-governmental coordination and cooperation in the development of standards, technical regulations and conformity assessment procedures. Standards, as referred to in Yemen's legislation, could be either voluntary or mandatory (technical regulations). The YSMO Board of Directors determined whether a technical regulation or standard or conformity assessment procedure was needed in consultation with the concerned entities, such as the Ministry of Agriculture, the Ministry of Public Works, and the Ministry of Public Health and Population. The process for developing standards, technical regulations and conformity assessment procedures was the same. A decision on whether a particular measure would be a standard or a technical regulation was taken in the implementing development plan. Specialized national committees, sub-divided in main committees, sub-committees and technical committees, had been created to prepare draft standards or technical regulations. The selection of members to sit on the specialized national committees and technical committees was based on the YSMO's Decree No. 6/2008, and these committees comprised of members selected from the YSMO, representatives of the relevant Government entity (ministry, corporation or authority), and a representative of the consumers, the commercial sector, the manufacturing sector, the scientific centres and universities. Requirements for prior notice and comment were also set-out in Decree No. 6/2008. The YSMO circulated draft standards and draft technical regulations to the concerned entities within the Government and to the private sector,

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universities, scientific centres etc. for review and comment. If no comments were received within two months, the drafts were considered acceptable and approved. Entities providing comments were invited to meet with the technical committee and the main committee, where their comments would be duly considered. The revised draft standard was forwarded to the Follow-Up Department (Directorate of Specifications) within the YSMO for finalization. The final draft was submitted to the YSMO's Board of Directors for approval. Concerning comments from foreign interested parties or WTO Members and their consideration while finalizing draft measures, he said that no comments had been received from foreign entities so far, and comments received in the future would be treated in accordance with the TBT Agreement. He added that interested parties could be invited to meet with the relevant committees and have their written comments duly considered on a non-discriminatory basis. The YSMO, through the TBT enquiry point, would notify proposed technical regulations and conformity assessment procedures to the WTO at the same time as it circulates drafts to the concerned Yemeni entities.

153. A Member noted that Decision No. 27/2006 "On By-Law of Granting Yemeni Quality Mark" appeared to be applicable only to domestic enterprises and products. Yemen was asked to clarify whether the Quality Mark was available only to local goods and legal persons established in Yemen or whether imported goods were also eligible to apply for the Mark. In reply, he said that the Yemeni Quality Mark, an optional mark, could be sought by all interested parties, domestic or foreign, and was available to locally produced and imported goods provided the requirements outlined in Decision No. 27/2006 were met. The effect of the mark was to assure the general public that the product had gone through a quality check.

154. Products requiring a certificate of conformity are listed in Table 18. Domestic products, including goods destined for export, required a certificate of conformity issued by the YSMO. The purpose was to ensure the quality of locally-produced and exported products, and to enhance the competitiveness of Yemeni products in foreign markets. The YSMO took samples from the consignment and performed tests to determine whether the product met the applicable standards. The exporter was notified in writing within five days if the sample did not meet the standards, and a compliance certificate could not be issued. Certificates issued by the YSMO were recognized for domestic products only. For goods imported into Yemen, the YSMO had contracted two internationally recognized and IFIA accredited companies, BIVAC and Cotecna, to inspect and issue conformity certificates in the country of origin to accompany each import consignment. These two companies worked with exporting countries and discharged their functions in accordance with international guidelines and practices. The two companies had no role in formulating the underlying technical regulations, standards or conformity assessment procedures as these were

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developed solely by the Government of Yemen. Importers and domestic manufacturers were subject to the same requirements. Importers of the listed food, agricultural, and animal products could choose to have the consignment inspected either prior to shipment or upon arrival. The specific requirements that the products were expected to conform to were those issued by international standard setting organizations adhering to the Code of Good Practice and the TBT Committee's Decision principles; and, Yemeni requirements based on international standards concerning health, consumer safety and the environment. The measure was not trade-restrictive, in his opinion, as the purpose for mandating certification of these products was prevention of deceptive practices and to ensure conformity with internationally accepted technical regulations and standards. He added that the conformity assessment procedures - as described in Table 18 and the relevant Yemeni regulations - varied with the nature of the product and its effect on health, safety and the environment. Concerning the basis for the selection of products subject to conformity assessment, he said that the health or safety risk and the domestic capacity to undertake the necessary inspection procedures determined the product coverage under the "International Conformity Certification Program" (ICCP) operated domestically by YSMO, and by BIVAC and Cotecna for goods imported into Yemen. Lack of adherence to standards or technical regulations also necessitated inspection and conformity assessment of products. His Government had undertaken an analysis to determine the need to regulate each of the groups of products listed in Table 18. The YSMO published the list of products subject to conformity assessment, would notify the WTO and make available, for public comment, any proposed changes to this product list.

155. A Member expressed concern about the issuance of conformity certificates and the accountability of the conformity assessment bodies, BIVAC and Cotecna, in terms of Government oversight and adherence with Yemeni requirements. Yemen was asked whether BIVAC and Cotecna would publish, on their respective websites, their interpretations and related approaches in situations in which these companies had to interpret Yemeni technical regulations, standards, or conformity assessment procedures to discharge their functions under the ICCP. Yemen was also asked to elaborate how complaints arising from operations of these companies would be addressed. Noting that the recognition of an equivalent inspection system for food products should preclude the need for individual establishment inspections and for product certification by an accredited body or third party, this Member suggested that the establishment of product compliance and approval for exporting to Yemen be conducted by the recognized competent authority of the exporting country in question. In reply, the representative of Yemen stated that any complaints or questions arising from BIVAC or Cotecna's operations and procedures could be submitted to YSMO which would review the situation and take corrective action, as necessary, in accordance with the terms agreed with these companies. Information on the applicable standards and procedures for all products covered by the ICCP would be published and made available, in a WTO working language, on the YSMO website and on the websites

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of BIVAC and Cotecna. The YSMO would also notify any specific administrative approaches and processes to the WTO Secretariat. He confirmed that the inspection of foodstuff could be carried out either prior to the shipment of the consignment or upon arrival in Yemen. Yemen would, as appropriate, notify to the WTO Committee on Technical Barriers to Trade of any transition from private firms to a Government conformity assessment programme.

156. In response to specific questions on the certificate of conformity requirements for foodstuff in Table 18 (Group 5, categories 1, 2, 3, 5, 7, 8 and 9), he said that regulations for halal slaughter and labelling in line with Codex Alimentarius guidelines and OIE Terrestrial Animal Health Code were provided for in Yemeni Standard Nos. 794/2004 and 1580/2006. The conformity assessment requirements for categories 1, 2, 3, 8 and 9 were, in his view, consistent with OIE guidelines for Bovine Spongiform Encephalopathy (BSE). For categories 2, 3, 5, 7 and 9, producers were required to maintain technical reports relating to the conformity assessment and food safety of the product at various stages of the production process, as well as inspection records, and periodic reports with production data and consumer feedback. Milk and dairy factories were required to adopt Good Manufacturing Practices (GMP) pursuant to Yemeni Standard No. 1/2001. YSMO periodically inspected these factories and was providing technical advice for implementation of HACCP and ISO 22000 systems.

157. Asked whether Yemen would accept without further testing the product certifications of bodies accredited with the International Laboratory Accreditation Corporation (ILAC) and International Federation of Inspection Agencies (IFIA), the representative of Yemen stressed the principle of mutual recognition and requested technical assistance in the area of accreditation. The conformity assessment system, including the accreditation of laboratories and the implementation of mutual recognition agreements, would be developed further over the period 2007-2014. YSMO intended to recognize the international ISO/IEC17025 standard, i.e. general requirements for the competence of standardization, testing and inspection laboratories. Laboratories based in other countries were eligible for recognition in Yemen if considered technically competent and meeting the required conditions (i.e. ISO/IEC17025). A Member noted that the TBT Agreement did not limit methods of acceptance of conformity assessment results. In addition to mutual recognition agreements, other tools depending on the sector, objective, or potential risks may be utilized. In response, he said that Yemen would consider using other tools as possible alternatives to mutual recognition to facilitate the acceptance of conformity assessment results.

158. He stated that Yemen did not discriminate between domestic and imported products when standards, technical regulations and conformity assessment procedures were developed and applied. There was also no discrimination between imported products from one WTO Member and "like" imported goods from other WTO Members. However, it was noted that Article 6 of Decision

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No. 3/2001 "On Issuance of Conformity Certificate to Metrological Standards By-Law" stipulated conditions for the conformity certificates issued by YSMO, one of which appeared to make the certificates available only to registered enterprises permitted to operate in Arab countries. Yemen was requested to modify this provision, by the date of accession, to allow exporters and producers established in third countries to obtain the certificate. In reply, the representative of Yemen said that there were no discriminatory procedures in Decision No. 3/2001. Conformity certificates were available to registered enterprises permitted to operate in other countries. A draft regulation or by-law amending Decision No. 3/2001 was in preparation and his Government was committed to bringing its certification regime in conformity with WTO requirements upon accession.

159. Decision No. 2/2003 of the Minister of Industry and Trade "On Regulations of Conformity Assessment of Goods and Enterprises to Accredited Standards" and Decree No. 9/2009 "On Regulation of Examination Services and Inspection Fees" with YSMO Regulation "On Inspection Charges Levied on Imported Goods" set the fees for issuing certificates of conformity. These fees were collected by YSMO and varied according to the type, nature or quantity of the product; logistics or materials used; and, the time, effort and staff needed. In his view, the fees set by YSMO, and agreed with BIVAC and Cotecna contracted to issue conformity certificates overseas, reflected the costs of services rendered. Inspection fees levied pursuant to Ministerial Decision No. 11/2004 "On the Regulation of Inspection Fees and Costs for YSMO Laboratories" on domestic and imported products were also non-discriminatory and commensurate to the cost of the services rendered.

160. An Information Centre and website (www.ysmo-ye.org) had been developed by the YSMO for the publication of information on standards, technical regulations and conformity assessment procedures. Draft technical regulations were posted online for a period of 60 days and the website was being improved to make draft conformity assessment procedures available for review and comment. Approved technical regulations and conformity assessment procedures entered into force immediately upon publication of the decision in the official newspapers. Approved measures were subsequently reproduced in the monthly "Specifications" magazine published by the YSMO. In accordance with Articles 2.12 and 5.9 of the TBT Agreement, Yemen would amend its regime to allow for a reasonable interval of time between publication and entry into force of technical regulations and conformity assessment procedures. The framework for making draft standards, technical regulations and conformity assessment procedures available for public review and comment would be strengthened. In this context, the transparency requirements of the Code of Good Practice (Annex 3 of the TBT Agreement) would be covered by replacing By-Law No. 22/2001 with a new By-Law "On Regulation of Standards Preparation Procedures".

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161. The representative of Yemen said that the Information Centre of the YSMO had been established to serve as the National Enquiry Point on TBT matters (Decision No. 5/2009 "On Establishment of the TBT and SPS Enquiry Points" and Decision No. 6/2009 "Organizing Work of the Enquiry Points of TBT and SPS"). Sub-Points were being created in the Ministries of Agriculture, Public Health and Population and in the Customs Authority to coordinate with the National Enquiry Point in the discharge of its functions. A special division within the Enquiry Point would be responsible for TBT notifications. Technical assistance was requested for the National Enquiry Point and Sub-Points to be fully operational. The contact details of the National Enquiry Point were:

Name: Nejat Ahmed Yahya Al-Khayat Address: Yemeni Standardization and Metrology Organization (YSMO) Industrial Complex, Al-Zubairy Street P.O Box 15261 Sana'a, Yemen

Email: [email protected] [email protected] Website: www.ysmo-ye.org Tel: + 967-1-408608/9 Ext: 142 Fax: + 967-1- 472557 / 402636 / 219980

162. A Member asked whether any harmonized rules or principles governed the development of regulations by individual ministries, and whether an executive body would review standards, technical regulations and conformity assessment procedures of the various bodies to ensure these were not duplicative, unnecessary, outdated or otherwise not in line with the principles of good regulatory practice. Noting the role of the YSMO in intra-governmental coordination, Yemen was asked to elaborate on the setting-up of a national mechanism for coordination between relevant agencies and the technical assistance needed for this purpose. In reply, the representative of Yemen said that a national mechanism was required to coordinate and avoid overlap or duplication in the updating and revision of the relevant laws, regulations and procedures. The national coordination mechanism would also serve to liaise with the private sector, civil society, media, science and research centres etc. To establish the mechanism, Yemen requested technical experts, training, awareness generation activities, and building the necessary infrastructure.

163. Although generally not supportive of transition periods for acceding countries to implement the TBT Agreement, a Member nevertheless recognized that Yemen, as an LDC, could seek transition periods. However, this Member found Yemen's request for a lengthy transition period difficult to reconcile as Yemen had already indicated that the principles of the TBT Agreement were covered by existing legislation; had established mechanisms for inter-ministerial coordination in the development of standards, technical regulations and conformity assessment procedures, and to publicize and

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receive comments on drafts; and was in the process of strengthening its enquiry point. This Member reminded Yemen that the development of additional technical regulations and conformity assessment procedures was not a condition of WTO compliance, but such reinforcement of Yemen's infrastructure should be viewed as an ongoing interest and target for additional assistance.

164. In response, the representative of Yemen reaffirmed his Government's commitment to fully implement the TBT Agreement with a transition period. He presented an action plan setting out details of the steps Yemen had taken or would take in order to achieve this objective and a timetable for each step (Table 19). The transition period was necessary for Yemen to review and update the relevant laws, decrees, regulations and procedures; strengthen the enquiry point, with a special division for notifications, and further develop the website created to meet the transparency provisions of the TBT Agreement; set-up a national mechanism for coordination between relevant agencies; continue to implement and develop standards, technical regulations and conformity assessment procedures in line with international standards and guidelines; work on mutual recognition agreements; and, establish a council for the accreditation of laboratories. During this transition period, existing measures would be applied on a non-discriminatory basis, i.e. providing for national treatment and MFN treatment to all imports. Measures in place already consistent with the provisions of the Agreement on Technical Barriers to Trade would not be subject to transitions, and Yemen would ensure that any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the Agreement than existed on the date of accession. Standards, technical regulations and conformity assessment procedures adopted during this period would be developed in conformity with the provisions of the Agreement. Yemen would endeavour to participate in the work of the Committee on Technical Barriers to Trade. He stressed the need for technical assistance for the implementation of the WTO TBT Agreement.

165. The representative of Yemen stated that Yemen would progressively implement the Agreement on Technical Barriers to Trade in accordance with the Action Plan in Table 19 and with the understanding that during this period the scope of implementation of other aspects of the Agreement, as described in paragraph 164 would be applied by Yemen. Full implementation will start from 31 December 2016. The Working Party took note of this commitment.

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Table 19: Action Plan for the Implementation of the Agreement on Technical Barriers to Trade

Provisions of the Current Status/Required Actions/Implementation Requirements Time-frame TBT Agreement Articles 2.9.4, 2.10.3, Implementation of laws/regulations related to the TBT 3.15, 3.3, 5.6.4, Agreement: 5.7.3, 7.1, 7.3 - Law No. 44/1999 "On Standards, Metrology and Quality Control"; - Decision No. 52/2000 "Establishing the YSMO"; and - By-laws related to TBT.

Review, adapt laws and by-laws in line with WTO requirements. 2007 - 2012 Article 10 TBT Enquiry Point: (a) Legal infrastructure:

- Decision No. 5/2009 "On Establishment of TBT and SPS Done Enquiry Points"; and - Decision No. 6/2009 "Organizing Work of the Enquiry Done Points of TBT and SPS".

Completing the preparation of the TBT National Enquiry Point. 2012 - 2013

Completing establishment of Sub-Points in the concerned bodies. 2012 - 2013

Collecting information on activities related to the TBT Agreement 2012 from relevant agencies in order to establish the database for the Enquiry Point. Articles 2, 3, 5, 7, 10, (b) Notification: 15.2, Annex 3, G/TBT/1, 5.7.1, 7.2, Special division within the Enquiry Point for notifications. Done 7.3, 10.7, 10.10 Recruitment of additional staff, training on notification 2012 - 2013 preparation and on how to deal with notifications. Articles 2.9.1, 3.1, (c) Publication and Receiving Comments: 2007 - 2013 5.6.1, 7.1, 10.1.5, Annex 3, Annex 4 - Website created. Draft technical regulations and standards Done (J, K, L, N, O), published on the website for receiving comments through Article 8.1 e-mail or other means; - Technical regulations and standards published in official Done newspapers; - Website to be improved in line with requirements of the Done Agreement; Articles 2.11, 2.12, - Issuing an official bulletin (YSMO Newsletter) concerning 2012 3.1, 5.8, 5.9, 7.1 the publication of drafts, other technical regulations, and receiving comments; and - YSMO allowing for a period to lapse between the issue of a Done technical regulation and its implementation.

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Provisions of the Current Status/Required Actions/Implementation Requirements Time-frame TBT Agreement Articles 2, 3, 5, 6, 7, Technical regulations: 2007 - 2015 2.3, 3.1, 7.1 - Using international standards, evidence and Done recommendations as a basis for developing technical regulations and conformity assessment procedures; - Adopting standards of Gulf Cooperation Council (GCC) and Done implementing YSMO-related laws and regulations; - Taking measures at customs entry points, in conformity with Done measures stipulated in the provisions of the Agreement; - YSMO working on the development and implementation of 2007 - 2015 procedures in line with the international agreements; (continuous) - Setting up a national mechanism for coordination between 2012 - 2013 relevant agencies; and - Separating technical regulations from standards 2012 - 2015 Articles 2.1, 3.1, 5.1, Conformity Assessment: 5.2, 7.1, 10.4, 2, 3, 5, 6, 7, Annex 3 (D, E), - Registering imported and local products to smooth control Done Article 8.1 process. YSMO physically inspecting imported and local products and lab examination, as necessary. Issuing the release of imported goods based on physical inspection and lab examination. Applying system of "Good Manufacturing Practices" (GMP) on local industrial food enterprises. No discrimination between domestic and foreign products; - Reviewing and updating the conformity assessment 2007 - 2014. procedures on products according to international guidelines (continuous) and practices in order to be in line with the Agreement; - Reviewing and updating the systems of granting Yemeni Done Quality Mark and conformity certificates for local products; - Reviewing and updating the control procedures for local 2007 - 2014 products; - Reviewing and updating the control procedures on imported Done and local products and those for export through the implementation of conformity certificate in the country of origin in accordance with international standards and guidelines and in line with the Agreement; - Establishing new YSMO offices and branches in the rest of 2007 - 2014 governorates and customs outlets; - Applying the system of Good Health Practices (GHP) and 2007 - 2014 Hazard Analysis and Critical Control Point (HACCP) on (continuous) industrial food enterprises; - Updating the Risk Management Department in line with the 2007 - 2014 provisions of the Agreement; - Participating in conferences, seminars, regional and (continuous) international workshops on conformity assessment procedures; and - Improving inspection procedures on imported and local (continuous) products. Articles 2.1, 3.1, 5.1, Accreditation of laboratories: 5.2, 7.1 - Establishment of an accreditation department to pave way Done for accreditation council in a few years; - Plan to establish a national accreditation council; 2007 - 2014 - Establishing accreditation council; 2010 - 2015 - Building lab capacity; and 2007 - 2015 - Training for accreditation controllers. 2010 - 2014 (continuous)

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Provisions of the Current Status/Required Actions/Implementation Requirements Time-frame TBT Agreement Articles 2.7, 3.1, 6, Mutual recognition and conformity assessment: 7.1 - Signing some Memorandums of Understanding; Done - Activating these Memorandums of Understanding to reach 2010 - 2014 agreements on mutual recognition; and - Concluding other agreements especially with States that 2010 - 2014 have business relations with Yemen. (continuous) Full implementation of the WTO Agreement on Technical Barriers to Trade 31 December 2016

- Sanitary and phytosanitary measures

166. The representative of Yemen said that Yemen was a member of the Codex Alimentarius Commission, the World Organisation for Animal Health (OIE) and the International Plant Protection Convention (IPPC). Yemeni representatives attended Codex, OIE, and IPPC meetings on a regular basis and would seek funding to participate in the technical committees of the Codex and OIE. Yemen's SPS measures were applied in line with the standards of these international bodies. International standards would be taken into account in developing and introducing new SPS measures in Yemen. Law No. 32/1999 "On Plant Quarantine"; Law No. 17/2004 "On the Organization and Protection of Livestock" (Animal Wealth); Law No. 44/1999 "On Standardization, Metrology and Quality Control" and Law No. 38/1992 "On Control over Food" with its amendments, by-laws and implementing regulations provided the legislative basis for the protection of plant life and health; animal life and health; and food safety, respectively. He added that a new Law "On Plant Quarantine" had been enacted and that Law Nos. 17/2004 and 44/1999 were being reviewed for consistency with international standards and WTO requirements.

167. The Ministry of Agriculture and Irrigation was responsible for overseeing the preparation and implementation of phytosanitary measures in Yemen. The Ministry administered and was responsible for the control, inspection and approval of plant life and health measures. The Ministry also enforced plant quarantine in accordance with the Plant Quarantine Law No. 32/1999. Application forms to receive prior permission to import plant consignments were either obtained from the General Department of Plant Protection, the website of the Ministry of Agriculture and Irrigation (www.mai-yemen.org), or the IPPC website (www.ippc.int). The completed form was submitted with proof of payment of the applicable fees (Table 8) to the General Department of Plant Quarantine which examined the application and, based on a risk analysis, would either grant permission specifying the phytosanitary terms and conditions to be met or deny permission and notify the applicant of the reasons therefore. Sample testing was the usual practice and 100 per cent testing was limited to cases where high potential risks had been identified. The determination of the pest risk was currently governed by the plant health regulations and a plant quarantine list based on a survey

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conducted in 1993. He added that Yemen intended to apply IPPC guidelines and needed assistance to carry out a new survey of plant pests and a Pest Risk Analysis to define a list of quarantine pests in the country.

168. In accordance with Animal Wealth Law No. 17/2004, the Ministry of Agriculture and Irrigation oversaw animal health quarantine, inspection and sanitary health conditions for meat products and eggs production. It was also responsible for issuing the Veterinary Health Permit required prior to importing consignments of unprocessed animal products. He stated that the Ministry intended to issue OIE consistent Veterinary Health Certificates for exports. In response to a specific question on animal quarantine, he said that Article 28 of Law No. 17/2004 regulated cases regarding losses due to negligence on the part of the quarantine administration. Proof of negligence was required to pursue cases for compensation.

169. On food safety, the representative of Yemen said that the YSMO was mandated to ensure the safety of domestic and imported food products and conformity with the applicable regulations. The YSMO issued technical regulations, standards, and technical systems related to food safety, including Good Manufacturing Practice (GMP), registration, import controls, risk management, certificates of conformity, food safety systems for milk and dairy products, tests for animal carcasses, sanitary conditions for slaughtering animals, research, scientific testing, sampling, and development of laboratory capabilities. The YSMO also assessed the conformity of imported food with the applicable requirements through procedural inspection, verification of documents, and product testing, if necessary. He added that the Ministries of Public Works and of Public Health and Population worked with the YSMO in the area of control and circulation of foodstuff. In coordination with the YSMO, the Ministry of Public Works was responsible for regulating the circulation of food in local markets. It served to protect consumers' health from food unfit for human consumption. The Ministry of Public Health and Population was responsible for keeping the competent authorities informed of WHO notifications concerning food or animal consignments that may be harmful to human health.

170. He said that there was coordination between the key regulatory bodies responsible for the preparation, administration, control, inspection and approval of SPS measures (i.e. the Ministry of Agriculture and Irrigation; the Ministry of Public Health and Population; the Ministry of Public Works and YSMO). Yemen would develop and improve this coordination on a continual basis.

171. The representative of Yemen said that his Government was reviewing and updating its legislation to ensure consistency with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and international standards. He presented checklists of

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illustrative SPS issues in documents WT/ACC/YEM/5, WT/ACC/YEM/12 and its Revision 1, an action plan for the implementation of the SPS Agreement in documents WT/ACC/YEM/13 and its Revisions, and a submission on technical assistance requirements in the SPS area based on the questionnaire in G/SPS/W/113 in document WT/ACC/YEM/14. He stated that the Animal Wealth Law No. 17/2004 and its implementing regulations had been updated for conformity with OIE regulations and the SPS Agreement. A new Law "On Plant Quarantine" and its implementing regulations had been adopted.

172. Some Members sought clarification on whether Yemen's legislation would be amended to ensure that SPS measures were applied only to the extent necessary to protect human, animal and plant health; and, to ensure that Yemen's regulations governing plant and animal health and food safety would be based on independent risk assessments and scientific evidence. Yemen was also requested to provide an update of any legislation to take account of equivalence and regional characteristics in existing or new animal or plant health and food safety regulations. In reply, the representative of Yemen said that these issues would be addressed as per Yemen's action plan to implement the SPS Agreement. Yemen had not signed any equivalence agreement or system with neighbouring countries. On the process of determining equivalence, he added that Yemen would comply with Article 4 of the SPS Agreement and accept health measures of other countries if these measures achieved an appropriate level of protection against the risk.

173. On Yemen's position with respect to high/low path avian influenza virus in imported poultry and poultry products and in relation to Bovine Spongiform Encephalopathy (BSE) in beef and live cattle exports, he said that OIE guidelines were followed on high/low path avian influenza. Importation of beef and live cattle were prohibited from BSE infected countries. This ban and the requirements for foodstuff described in Table 18 were, in his view, consistent with OIE guidelines for BSE. He added that Yemen would comply with the tolerance level of hormones for animals permitted in Codex Alimentarius and OIE guidelines, upon accession.

174. A Member noted that the import ban of beef and live cattle was not consistent with OIE recommendations for BSE and contradicted the Health Certificate for the Export of Bovine Meat submitted by Yemen. This Member encouraged Yemen to apply OIE consistent treatment for trade in beef and live cattle. On the tolerance level of hormones, Yemen was encouraged to harmonize its maximum residue limits (MRLs) to Codex, or where there was no provision, to consider using the science and standards of other WTO Members. In response, the representative of Yemen confirmed its intention to comply with Codex and OIE requirements with respect to hormone levels, and to use MRLs of Codex or other international standards, including those based on the science and standards of other

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WTO Members when establishing the MRLs for hormones in Yemen. He added that Yemen intended to comply with OIE recommendations for beef and live cattle but requested assistance as the country currently did not have the technical capabilities to do so. In response to specific queries on the Health Certificate for Export of Bovine Meat, he said that Yemen used this certificate as it was based on a standard form developed by the OIE Regional Office for the Middle East. The certificate was to be issued by the veterinary authorities in the exporting country. Yemen would align the certificate to recognize the OIE risk classification categories and would follow the recommendations of the OIE Terrestrial Animal Health Code.

175. Concerning amending existing or enacting new SPS measures, a Member asked whether draft measures were made available to the public, including non-Yemeni interested parties, whether an opportunity was provided for public comment on the draft measures, and whether the Government would take such comments into account in revising the proposed measures. The representative of Yemen replied that prior publication of draft SPS measures was not presently provided for in any official journal or the newsletter of the Ministry of Agriculture and Irrigation. Food safety measures were, however, made available for public review and comment prior to adoption at the YSMO website (www.ysmo-ye.org). As per the revised SPS checklist, Yemen would take steps to notify draft measures at an early stage, and provide WTO Members 60 days to provide comments. Comments would be taken into consideration while finalizing the proposed measure.

176. The representative of Yemen said that the SPS National Enquiry Point and National Notification Authority had been established in the Ministry of Agriculture and Irrigation. Technical assistance was requested for the National Notification Authority and Enquiry Point to be fully operational by the date of accession. The SPS National Enquiry Point and National Notification Authority could be contacted at:

Address: Ministry of Agriculture and Irrigation Agricultural Services Sector SPS Unit P.O. Box No. 2805 Sana'a, Yemen

Tel: 967-1-560462 Fax: 967-1-560462 Email: [email protected] Website: under construction

177. The representative of Yemen noted that achieving compliance with the requirements of the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) was a complex task. Yemen was accordingly seeking a transition period as outlined in the Action Plan for

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the implementation of the SPS Agreement reproduced in Table 20. The transition period was necessary to permit the adoption of legislation, train staff, ensure that Government officials and stakeholders had good knowledge and understanding of SPS legislative requirements, and to make sure that control inspection and procedures were fully operational. He stressed the necessity for his Government to receive adequate technical and financial assistance to ensure the proper implementation of the SPS Agreement.

178. During the implementation period, existing measures would be applied on a non-discriminatory basis, i.e. providing for national treatment and MFN treatment to all imports. Measures in place at the time of accession and already consistent with provisions of SPS Agreement would not be subject to transitions. Yemen would ensure that any changes made in its laws, regulations, and practice during the transition period would not result in a lesser degree of consistency with the provisions of the SPS Agreement than existed on the date of accession. The Working Party took note of these commitments.

Table 20: Action Plan for the Implementation of the Agreement on the Application of Sanitary and Phytosanitary Measures

Provisions of the SPS Activity Time-frame Agreement Article 2: Review, update and issue the Plant Quarantine Law Done No. 32/1999 and its executive Regulations No. 54/2001 for Article 2.2: Measures consistency with the SPS and the new revised text for IPPC. applied only to the Review and update Animal Wealth Law No. 17/2004 and its 2013 extent necessary to executive regulations for harmonization with respective protect human, animal or international standards of OIE and SPS Agreement. plant life or health is Review and update the Specification Metrology and Quality 2008 - 2013 based on sufficient Control Law No. 44/1999 in order to conform to the SPS scientific evidence Agreement and Codex specifications. Review and update the technical food regulations and food 2008 - 2013 specifications in accordance with the international specifications of the Codex Alimentarius Commission. Conduct sanitary survey for food safety in main cities. 2008 - 2010 Periodic evaluation for the food control system as well as on 2008 - 2010 food inspection activities according to the guides, manuals and Continuous international recommendations. Preparation and issuance of Food Law for the country in 2008 - 2013 coordination and cooperation with relevant ministries and authorities. Article 2.2 Establish the Yemeni Food Committee (Yemeni Codex 2008 - 2013 Committee). Build and equip new plant quarantine stations at entry points. 2008 - 2013 Build veterinary quarantine stations at entry points. 2008 - 2013 Development of phytosanitary and animal health laboratories. 2008 - 2013 Setting a central laboratory for food safety and special food 2008 - 2014 testing laboratories at the entry points. Development of human capacity in the areas of phytosanitary 2008 - 2013 and animal health.

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Provisions of the SPS Activity Time-frame Agreement Article 2.3, Check and ensure the compliance of the above-mentioned 2008 - 2015 Annex C.1(a) and (d): laws and regulations with SPS provisions on Non-discrimination non-discrimination, control, inspection and approval procedures. Updating information on import requirements for plants, plant 2008 - 2009 products, animal and animal products and other related Continuous articles. Article 3: Check and ensure the compliance of the above-mentioned 2008 - 2015 laws and regulations with harmonization obligations. Articles 3.1, 3.3 and 3.4: Participation in SPS major meetings and other related sanitary 2008 - 2010 Harmonization with and phytosanitary agreements meetings and their subsidiary Continuous international standards, organizations. guidance, and Implement the international standards for sanitary and Continuous recommendations phytosanitary measures. Article 4: Equivalence Check and ensure the compliance of the above mentioned laws 2008 - 2016 and regulations with equivalence obligations. Article 5: Update pests' lists according to risk analysis and assessment. 2008 - 2013 Implement specific technical training program in particular: 2008 - 2013 Articles 5.1, 5.2 and 5.3: Risk assessment to - Plant pest risk analysis; ensure that measures are Implementation of HACCP system and related based on science and procedures; and applied only to protect - Animal disease risk analysis. health Articles 5.1, 5.2 and 5.3: Creation of food-born diseases' lists according to risk analysis 2008 - 2013 and assessment. Establishment of risk analysis and assessment management. 2008 - 2013 Article 6 and Initiation to find pest or disease free areas and areas of low 2008 - 2013 Annexes A.6 and A.7: pest or disease prevalence. Declaration of pest or disease free areas and areas of low pest 2008 - 2013 Adaptation to regional or disease prevalence. conditions Article 7 and Annex B: Follow up the process of the establishment and development Done of National Notification Authority and Enquiry Point in the Transparency: Ministry of Agriculture and Irrigation. Establishment and Development of the subsidiary enquiry points in line 2008 - 2013 operation of a single ministries and authorities (Ministry of Health, Yemen enquiry point, Specifications and Metrology Organization). publication of regulations and notification Article 8 and Annex C: Development of the pesticides residue analysis lab. 2008 - 2013 Development of veterinary drugs residue analysis lab. 2008 - 2013 Control and inspection / Development of additives and contaminants analysis lab. 2008 - 2013 approval procedures for additives / tolerance contaminants in food Full implementation of the WTO Agreement on the Application of Sanitary and 31 December 2016 Phytosanitary Measures

179. Some Members highlighted the progress made by Yemen in reviewing its SPS legislation and invited Yemen to continue with its efforts to bring regulations and legislation progressively in compliance with the SPS rules. They took note of Yemen's request for a transition period till

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31 December 2016 for full implementation of the SPS Agreement and encouraged Yemen to take advantage of the technical assistance available in the SPS area.

180. The representative of Yemen confirmed that Yemen would implement progressively the provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures within the timetable provided for in the Action Plan for implementation in Table 20, and would ensure full implementation of the Agreement no later than 31 December 2016, and with the understanding that during this period the scope of implementation of other aspects of the Agreement, as described in paragraph 178 would be applied by Yemen. He further confirmed that Yemen would consult with WTO Members, upon request, if they deemed that any measures applied during the transition period affected their trade negatively. The Working Party took note of these commitments.

- Trade-related investment measures

181. The representative of Yemen said that foreign and domestic investment received equal treatment with no discrimination in respect of rights, obligations, rules and procedures. In his view, the "Production Sharing Agreements" or "Special Agreements", covering hydrocarbon exploration concessions, were not inconsistent with the Agreement on Trade-Related Investment Measures. He reiterated that his Government intended to avail itself of local content and export performance requirements in establishing industrial zones should such measures be considered conducive to Yemen's industrial development. He acknowledged that Yemen provided tax and duty exemptions pursuant to Articles 20 and 21 of the Investment Law No. 22/2002 to promote local content in investment projects, and that these incentives were not fully consistent with the Agreement on Trade-Related Investment Measures (TRIMs). He sought the understanding of Members on these issues in the light of Annex F to the Declaration of the Sixth Ministerial Conference.

182. Some Members requested Yemen to provide an action plan for the implementation of the TRIMs Agreement. The plan should include elimination of all TRIMs in a manner consistent with the TRIMs Agreement and WTO Declarations, also for measures applicable to industrial zones, production sharing agreements, and special agreements. Concerns were raised regarding Yemen's intentions to avail itself of local content requirements to promote investment in industrial zones. A Member stated that in order for Yemen to utilize transitions to maintain its TRIMs, Yemen should identify them for notification, indicate how long within the allowable period Yemen believed it necessary to maintain these measures, and make a commitment to eliminate all measures inconsistent with the Agreement by a certain date, e.g. 31 December 2014. No transition period could be considered without Yemen identifying its possible TRIMs and setting out an action plan to eventually remove all measures inconsistent with the TRIMs Agreement and WTO Declarations.

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183. The representative of Yemen presented a notification, in document WT/ACC/YEM/30, identifying measures in the Investment Law that were not in conformity with the provisions of the TRIMs Agreement. Yemen had initially requested a transition period (till 2015) to phase-out the investment incentives that were contingent upon promoting local content in fixed assets (capital goods). He noted, however, that Yemen was no longer requesting such transition period to phase-out its local content subsidies as the new Investment Law No. 15/2010 had eliminated provisions relating to local content based subsidies in Law No. 22/2002. Investment projects already established pursuant to Law No. 22/2002 would discontinue by no later than 1 January 2013.

184. The representative of Yemen said that Yemen would not maintain any measures inconsistent with the TRIMs Agreement and would apply the TRIMs Agreement from the date of accession without recourse to any transitional period. The Working Party took note of this commitment.

- Free zones, special economic areas

185. The representative of Yemen said that the Law No. 4/1993 "On Free Zones" defined a wide range of economic activities that could be undertaken and were promoted in a free zone. In practice, all industries that could be established in Yemen were permitted to operate in the free zones. Goods imported into a free zone, as well as the products manufactured in and exported from such a zone, were not subject to import and export duties, fees or production taxes. All firms or projects operating in a free zone were exempt from taxes on profits and from corporate income tax for a period of 15 years (Article 12 of Law No. 4/1993). This tax exemption could be extended for a period of up to 10 years upon approval by the Council of Ministers. Establishment in a free zone was the only criterion for receiving these tax exemptions. Salaries, wages and other remuneration of non-Yemeni employees, working on projects within a free zone, were exempt from income tax. No foreign exchange control measures were applied to the free zones, and the transfer of capital, profits and salaries was unrestricted. Yemen's foreign exchange regulations had in any case been liberalized, also for companies located outside the free zones. Goods sold from a free zone to the domestic market would be subject to customs duties, other border taxes and fees, and normal customs procedures pursuant to the Customs Law and the Free Zones Law.

186. The Free Zones Law provided the legislative basis for the establishment of the Aden Free Zone. The benefits available to licensed investment projects in the free zones were not contingent on local content or export performance requirements. All firms or projects in a free zone, including those with 100 per cent foreign ownership, were entitled to the same incentives and guarantees provided for in the Law. He confirmed that free zones would be subject to, and covered by, any future commitments undertaken by Yemen as a Member of the WTO.

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187. A Member reiterated a request that Yemen eliminate any remaining prohibited subsidies within the meaning of Article 3 of the Agreement on Subsides and Countervailing Measures, also in its free zones. The representative of Yemen stated that Yemen would apply all the provisions of the Agreement, including its Article 27.

188. The Representative of Yemen said that free zones established under Law No. 4/1993 "On Free Zones" or any subsequent legislation would be fully subject to the coverage of WTO Agreements and its commitments in its Protocol of Accession to the WTO Agreement and that Yemen would ensure enforcement of its WTO obligations in those zones. In addition, the representative of Yemen confirmed that from the date of accession goods produced in any free trade zones or areas under tax and tariff provisions that exempt imports and imported inputs from tariffs and certain taxes would be subject to normal customs formalities when entering the rest of Yemen, including the application of tariffs and taxes. The Working Party took note of these commitments.

- Government procurement

189. The representative of Yemen said that government procurement was regulated by Law No. 3/1997 "On Government Bids, Tenders and Warehouses". Except for the Ministry of Defence, procurement of ministries and government bodies, at central and local level, was usually carried out by public tender. Although commercially-oriented State-owned enterprises were not subject to Law No. 3/97, as a general rule, wholly State-owned enterprises also used public tendering to purchase goods and services.

190. The High Committee for Tenders and its branches supervised and monitored government procurement. The High Committee was responsible for announcing, receiving, evaluating and awarding tenders. In accordance with the Executive Regulation of Law No. 3/1997, the procurement methods used in Yemen were direct order (for purchases less than YRls 30,000); direct tendering involving at least two bidders (value between YRls 30,000 and YRls 200,000); limited tendering with three or more competing bidders (procurement between YRls 200,000 and YRls 1 million); and, public tenders open to all qualified bidders, and announced in the media, for government procurement of more than YRls 1 million. Technical and administrative committees were established, in the concerned government bodies, to oversee the tendering process, including the preparatory stages and the post-announcement procedures. The Law stipulated equal and fair treatment for all potential suppliers. The right of appeal was provided for in the Law, and appeals could be directed to the courts or to the authority responsible for the procurement.

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191. A Member encouraged Yemen to consider acceding to the Agreement on Government Procurement. In response, the representative of Yemen said that his Government would decide how to deal with this Agreement after accession to the WTO. At present, Yemen had no intention to join the Agreement.

- Transit

192. The representative of Yemen said that transit trade was governed by the provisions of the Customs Law No. 14/1990. The Customs Law provided for the use of international transit documents, unified forms, and security and safety procedures. Goods in transit were not subject to restrictions or prohibitions unless specified otherwise in domestic laws and regulations. In his view, the Customs Law was consistent with Article V of the GATT 1994.

193. Transit trade was supervised by the Customs Authority. The Authority could identify the entry points, the transportation means and the itinerary for the passage of goods, taking into account agreements concluded with other countries. Goods in transit were declared and, if necessary, inspected and sealed. The Customs Authority could request a guarantee to cover the customs duties applicable if the cargo was diverted to the domestic market. The Authority issued permits that could be cancelled in case of violation or misuse.

- Agricultural policies

194. The representative of Yemen said that agriculture was the backbone of Yemen's economy, employing about 52 per cent of the work force and accounting for 13 per cent of Yemen's GDP in 2009. He provided information on the agricultural sector, including tables on domestic support and export subsidies, for the period 2006 to 2008 in document WT/ACC/SPEC/YEM/1/Rev.2.

(a) Imports

195. The representative of Yemen said that imported agricultural goods were subject to customs duties and taxes, as well as technical regulations, standards, quarantine and SPS requirements. Yemen prohibited the importation of coffee and mango, and maintained seasonal restrictions on some fruit and vegetables that were sensitive and important for farmers' livelihoods and in their contribution to the economy. These seasonal restrictions and ban on imported coffee and mango would be lifted upon accession (see "Quantitative Import Restrictions"). Custom duty exemptions could be provided to the Government's agricultural projects. The exemptions were currently limited to machinery, equipment, tools, materials and products imported by the Ministry of Agriculture and Irrigation for

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rural development and for use in infrastructure projects. The Ministry was implementing these projects with international organizations such as the World Bank, IFAD, and the FAO.

(b) Exports

196. The representative of Yemen said that Yemen was a signatory to the CITES Agreement and prohibited the export or trade in endangered plant or animal species. The export of some rare birds, flora and fauna were also discouraged to preserve the environment.

197. No export subsidy, export finance, export credit or guarantee programmes were currently available. His Government reserved the right to introduce measures in full compliance with the rights and obligations of the Agreement on Agriculture, including the special and differential treatment provisions available to LDCs with respect to market access, domestic support and export subsidies. Some Members encouraged Yemen to bind its agricultural export subsidies at zero upon accession. In reply, the representative of Yemen confirmed that Yemen would bind agricultural export subsidies at zero from the date of accession, in accordance with Article 9 of the WTO Agreement on Agriculture. The Working Party took note of this commitment.

(c) Internal policies

198. The representative of Yemen said that his Government was seeking to promote agricultural production as a long term objective in tandem with Yemen's food security and poverty reduction strategy (Third Five Year Development and Poverty Reduction Plan, 2006-2010). Policy instruments to encourage agriculture included rural development projects; agencies providing advisory services to farmers; training and awareness generation on the use of modern agricultural technology and techniques; public works, including infrastructure, water management or minor irrigation projects such as the construction of small dams and tanks to collect rain water in drought-prone areas; efforts to control pests and agricultural diseases; and, the establishment of small plant nurseries in villages. His Government provided credit and funded research to develop and improve agricultural production and the institutional infrastructure needed for the production and marketing of agricultural products. Loans to farmers were generally disbursed through the State-owned Cooperative and Agriculture Credit Bank at market interest rates. However, loans for the purchase of agricultural machinery, equipment and inputs could be disbursed on concessional terms, in which case the interest subsidy would be covered by a special fund backed by the Government or donor programmes. Information on the loan terms, repayment conditions, default fees and penalties, applicants' eligibility and qualifications, repayment and default rates, and the total amount of money disbursed through Yemen's lending programmes was provided in document WT/ACC/YEM/32 (pages 28-29).

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- Textiles regime

199. The representative of Yemen said that textile imports were not subject to quotas or other restrictions.

V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME

- GENERAL

- Industrial property protection

200. The representative of Yemen said that the Intellectual Property Rights Law No. 19/1994 provided the basis for intellectual property protection in Yemen. The Law regulated and protected different forms of intellectual property, including trademarks, copyright, industrial designs and patents. His Government had undertaken a review of the Intellectual Property Rights Law No. 19/1994 and had adopted new laws to ensure compliance with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement).

201. He provided information on the implementation of the TRIPS Agreement in document WT/ACC/YEM/7 and its Revision 1, as well as an action plan (document WT/ACC/YEM/8 and its Revisions), detailing the technical assistance, funding and transitional arrangements required by Yemen to implement the TRIPS Agreement. As indicated in the Action Plan (Table 23), the new Industrial Property Laws had been enacted and implemented, including the Law "On Trademarks and Geographical Indications" adopted on 21 November 2010; the Law "On Industrial Designs" adopted on 26 December 2010; and the Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information" adopted on 12 January 2011. The Law "On the Protection of Copyright and Related Rights" had been approved by Parliament in April 2012. The full implementation of the TRIPS Agreement would be effective by the end of 2016 (except for patent protection of pharmaceuticals covered by the Decision on TRIPS and Public Health (WT/L/641)).

202. The representative of Yemen requested technical assistance to establish, enhance and modernize the IPR Departments; to build human capital and the capacity to enforce IPR legislation; and, to provide training and generate awareness among the authorities, including the judiciary, customs, and the prosecution agencies.

- Responsible agencies for policy formulation and implementation

203. The representative of Yemen said that a General Department for the protection of industrial property rights set up within the Ministry of Industry and Trade was responsible for the regulation and

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protection of industrial property rights. The Ministry of Culture was responsible for policy formulation and protection of copyright and related rights and had established a General Department for the protection of copyright and related rights within the Ministry to fulfil this role.

- Participation in international intellectual property agreements

204. The representative of Yemen said that Yemen had become a member of the World Intellectual Property Organization (WIPO) in 1979, and had acceded to the Paris Convention on 15 November 2006 and to the Berne Convention on 14 April 2008. His Government was not a signatory to any other intellectual property conventions or agreements.

205. A Member requested information on Yemen's plans to accede to intellectual property treaties such as the Brussels Convention Relating to the Distribution of Programme-Carrying Signals Transmitted by Satellite, the International Convention for the Protection of New Varieties of Plants, the Patent Cooperation Treaty, the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty. The representative of Yemen replied that he expected accession to such agreements to lead to financial, institutional and administrative burdens exceeding Yemen's capabilities. Presently, Yemen did not have plans to accede to any other intellectual property treaty. However, Yemen would examine the feasibility of acceding to them, in particular the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty.

- Application of national and MFN treatment to foreign nationals

206. Some Members questioned the consistency of Articles 64, 105 and 120 of the Intellectual Property Rights Law No. 19/1994 with the national treatment obligation of the TRIPS Agreement for patents and industrial designs. The representative of Yemen replied that the Law generally provided national and MFN treatment to foreign natural and legal persons. However, for patents, Article 120 of the Law provided national treatment only to foreigners living outside Yemen, and not explicitly to non-nationals residing in Yemen. He said that Yemen would revise its law to ensure full conformity with Article 3 of the TRIPS Agreement.

207. Concerning copyright and related rights and the protection accorded to works of Yemeni or foreign authors - whether resident in Yemen or living abroad, he said that Article (3)(b) of the draft Law "On the Protection of Copyright and Related Rights" took account of the national treatment principle of the TRIPS Agreement. Protection was given to Yemeni and foreign authors from countries that were signatories to treaties and international agreements on intellectual property to which Yemen was also a party.

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- Fees and taxes

208. The representative of Yemen said that the registration of creative activities (i.e. copyright) was free of charge until the establishment of appropriate fees for registration. Tables 21 and 22 enumerate the registration fees for trademarks, patents and industrial designs set by the Ministry of Industry and Trade.

Table 21: Registration Fees for Trademarks and Patents.

Measure Fee in YRls Trademark application 3,000 Trademark registration 9,000 Replacement for lost certificate 6,000 Protest to trademark registration 6,000 Application for trademark transfer and mortgage 7,500 Application for trademark deletion 3,000 Application for trademark renewal 12,000 Patent application 3,000

Table 22: Registration Fees for Industrial Designs

Measure Fee in YRls Application for deposition of industrial design 20,000 Registration fees 10,000 Application for registration of modifications to data of design owner 10,000 Fees for obtaining a true copy 10,000 Application for obtaining data from registry 10,000 Replacing a lost registration certificate 10,000 Raising a grievance to Grievance Committee 10,000 Application for registering the transfer of property, mortgaging, or 20,000 waiving the industrial design Application for registering a licence to use the design 20,000 Application for deletion 5,000 Application for renewal of industrial design (a) when submitted during the final year of protection 20,000 (b) when submitted within 3 months after expiry of protection 20,000 + fine of 5,000 per month

- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS

- Copyright and related rights

209. The representative of Yemen said that his Government had drafted a Law "On the Protection of Copyright and Related Rights" to replace the general Intellectual Property Rights Law No. 19/1994 as the legislative basis for copyright protection. This new Law had been approved by Parliament on 14 April 2012 and was enacted in July 2012. In his view, the new Law "On the Protection of

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Copyright and Related Rights" was in line with the provisions of the TRIPS Agreement and had replaced and superseded all conflicting provisions concerning copyright and related rights found in Yemen's legislation.

210. The Intellectual Property Rights Law No. 19/1994 granted copyright to creative works in arts, literature, and science regardless of form, purpose, importance, or production process. Copyright protection was accorded to scientific, literary and artistic writings; drawings, paintings, engravings, illustrations, architectural, sculptural and lithography works; speeches, lectures, sermons and other works; theatre, drama and musical works; musical compositions; photographic and cinematographic works; maps, geographical drawings and sketches; audio-visual works for radio or television broadcasting; applied arts, etc. Article 24 of the Intellectual Property Rights Law provided protection of works for the lifetime of the author and for 30 years after his/her death. Article 25 accorded protection to cinematographic and television film producers for a 25 year period. Portrait right holders were protected for a 10-year period. The term of protection for radio and television broadcasts was two and three years, respectively, as per Article 27 of the Law. Article 39 provided permanent copyright protection for rights held by scientific, literary or artistic bodies and institutions.

211. In accordance with the Law "On the Protection of Copyright and Related Rights", computer programs and compilations of data were provided protection in accordance with Article 10 of the TRIPS Agreement. Rental rights for computer programs and cinematographic works, previously protected on the basis of their respective rental contracts, had also been ensured in line with Article 11 of the TRIPS Agreement. Asked about the protection of performers, producers of phonograms and broadcasting organizations, stipulated in Articles 14.1, 14.2 and 14.3 of the TRIPS Agreement, the representative of Yemen said that Articles 3 and 13 of Law No. 19/1994 had protected performance rights and their utilization, and that Yemen would ensure compliance with Article 14 of the TRIPS Agreement in its revised legislation. On the term of protection provided, he said that full compliance with Article 12 and 14.5 of the TRIPS Agreement, and Article 7 of the Berne Convention, had been addressed in the new Law "On the Protection of Copyright and Related Rights".

212. Some Members had requested information on the conformity of the Intellectual Property Rights Law No. 19/1994 with the provisions of the Berne Convention (Articles 5.2, 12, 18), incorporated by reference in Article 9 of the TRIPS Agreement. A Member had noted that Article 16 of that Law had not appeared to refer to quotations, and Article 13, listing authors' exclusive rights, had not included the full right of adaptation of works. In addition, having reviewed an early draft of the new Law "On the Protection of Copyright and Related Rights", a Member noted that Article (40)

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of the draft did not appear to meet the requirements of Article 13 of the TRIPS Agreement. Yemen was asked to confine the exceptions and limitations to exclusive rights to certain special cases that did not conflict with a normal exploitation of the work and did not prejudice the legitimate interests of the right holder. Yemen was also requested to modify the draft Law to fully meet the requirements of Article 18 of the Berne Convention and incorporate all types of works and objects of related rights.

213. In reply, the representative of Yemen said that compliance with Article 9 of the TRIPS Agreement had been addressed in the new Law "On the Protection of Copyright and Related Rights", as approved by Parliament on 14 April 2012. A full right of adaptation, in line with Article 12 of the Berne Convention, had also been taken into account. Article (40) of the early draft of the Law had been redrafted to fully comply with Article 13 of the TRIPS Agreement. Concerning Article 5.2 of the Berne Convention and the mandatory registration procedures in Articles 35-37 of the Intellectual Property Rights Law No. 19/1994, he said that the new Law did not include provisions on mandatory registration procedures. The new Law also addressed the requirements of Article 18 of the Berne Convention, providing for protection of works and objects of related rights that, at the time the Law entered into force, had not fallen into the public domain in the country of origin through the expiry of the term of protection.

- Trademarks, including service marks

214. The representative of Yemen said that the Intellectual Property Rights Law No. 19/1994, the Decision of the Ministry of Industry and Trade No. 353/1995 "On Implementation of Trademark Regulations", and the new Law "On Trademarks and Geographical Indications" of 21 November 2010, provided the legislative basis for the protection of trademarks.

215. The Intellectual Property Rights Law defined a trademark as a mark or symbol to distinguish a product of an industrial, agricultural, or commercial project, an extracting industry, or to indicate the services of an establishment. The Law enabled the protection of all trademarks or service marks except those contrary to public order or morality. The Ministry of Industry and Trade had identified marks ineligible for protection as those involved in or promoting prohibited products or services, including alcoholic drinks, wine, spirits and narcotics; pork products, raising pigs, and the sale of pork meat to the public; night clubs and casinos; and, pornographic material, names, or statements violating the culture or public order.

216. Usage of a registered trademark required the owner's prior approval. Trademarks had to be registered to be accorded protection. This Law did not allow the registration of trademarks identical,

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similar, imitating, completely or partially translating, or associated with a "well-known mark" or a previously registered trademark. Article 14 of the new Law "On Trademarks and Geographical Indications" established opposition procedures against trademark applications. The new Law had been drafted to conform to Article 6bis of the Paris Convention and Article 16.2 of the TRIPS Agreement. Article 6 of the new Law would allow unregistered "well-known marks" to be protected in Yemen.

217. Registration of a trademark did not require prior use, but the mark had to be clearly distinguishable from other marks. Articles 92-95 of the Intellectual Property Rights Law set-out the procedures and steps for registration of trademarks, including the submission of an application, examination, publication, contestations and the issue of a registration certificate.

218. Trademark protection was valid for ten years from the date of filing of the application, and renewable. Renewals were effected in the final year of protection. If no request had been received, the Ministry of Industry and Trade would give a written notice to the owner two months prior to the expiry of the trademark registration, and automatically delete the registration of the mark if the registration had not been renewed within three months of its expiry. The courts also had the right to delete the registration of a trademark if not used for five consecutive years without an acceptable reason.

219. Individuals engaged in commercial services or industrial activity could apply to register a trademark and subsequently be assigned ownership to the registered trademark. Trademark licence agreements required registration with the Yemeni authorities, and a licensee could initiate trademark infringement cases in Yemen.

220. The representative of Yemen said that Article 39 of the new Law "On Trademarks and Geographical Indications" covered the relationship between trademarks and geographical indications and, in his view, met the requirements of Article 24.5 of the TRIPS Agreement. Trademarks bearing a geographical indication would be registered if the mark was acquired, in good faith, prior to the enforcement date of the Law or prior to the date the geographical indication was afforded protection in its country of origin. A Member requested Yemen to provide the grounds for the owner of an earlier protected trademark to prevent the protection of a confusingly similar or later-in-time geographical indication. The right of trademark owners to assert the exclusivity of a mark should be enforceable prior to the date the geographical indication was applied for in Yemen rather than the date the indication was afforded protection in its country of origin or the date of enactment of the new Law. This Member noted that a WTO panel report (WT/DS174) had found that Article 16.1 of the TRIPS Agreement would govern the ongoing relationship between prior trademarks and later applied for geographical indications. Another Member cited the grounds for refusal of protection of a geographical indication as regards prior

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trademarks in its own legislation. Furthermore, this Member noted that its legislation allowed for a trademark applied for, registered, or established by use in good faith to continue to be used notwithstanding the registration of the geographical indication provided that no grounds for its invalidity or revocation existed. Yemen was invited to examine these provisions and incorporate the wording of Article 16.1 of the TRIPS Agreement in the new draft Law. In response, the representative of Yemen said that his Government had examined the suggestion to allow trademark owners the possibility to challenge later-in-time geographical indications in Yemen. He added that Article 16.1 of the TRIPS Agreement had been incorporated in Article 22.2 of the Law "On Trademarks and Geographical Indications" in compliance with the TRIPS Agreement.

- Geographical indications, including appellations of origin

221. The representative of Yemen said that a new Law "On Trademarks and Geographical Indications" had been adopted on 21 November 2010.

222. Some Members sought further information on Yemen's conformity with Articles 22 and 23 of the TRIPS Agreement, specifically with regard to preventing false or misleading use of geographical indications. Yemen was also asked to clarify how these provisions of the TRIPS Agreement would apply to certain prohibited products such as wines, spirits and pork to avoid their illegal use as geographical indications for other purposes or for other products.

223. The representative of Yemen replied that the trademark system currently provided interested parties with the legal means to prevent misleading use of geographical indications. He said that wines and spirits were not registered and protected as trademarks in Yemen. There was no domestic production, importation or consumption of prohibited items in Yemen and no justification, in his opinion, to offer protection for geographical indications connected to these products. He added that geographical indications registered in Yemen for other goods were afforded protection under the new Law "On Trademarks and Geographical Indications".

224. He said that the new Law characterized geographical indications as indications which "identify a good as originating, in a territory or region in Yemen or in a country which is a member to an international agreement to which Yemen is a party, or which treats Yemen on reciprocal basis, when the quality, reputation or other characteristic of these goods which influence its promotion is essentially attributable to its geographical origin". Protection of a geographical indication in Yemen would be contingent upon its protection in the country of origin.

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- Industrial designs

225. The representative of Yemen said that the Intellectual Property Rights Law No. 19/1994 accorded protection to industrial designs. Articles 106-108 of the Law set-out the procedures to register an industrial design. Registered industrial designs could not be used without prior permission of the owner. Registered industrial designs were protected for an initial five-year term from the date of application. The period of protection could be extended for two additional five-year terms. He said that the Law would be revised to take account of Articles 26.1 and 26.3 of the TRIPS Agreement.

226. Asked whether a design could be registered as a trademark in Yemen, he replied that the Law No. 19/1994 distinguished trademarks from industrial designs, each with their distinctive definition and registration process. The Law defined trademarks in Article 85 and industrial designs in Article 103 as "any original form that is characterized by novelty and serves to give a line of industrial production a distinctive ornamental appearance by using a particular composition of lines or colours or selecting a particular form, whether by machine, by hand or chemically".

227. Having reviewed a draft of the new Law "On Industrial Designs", a Member noted that Article (16)(a) of the draft provided for a non-renewable 10 year term of protection from the date of filing the application. Yemen was requested to grant protection of at least 10 years in accordance with Article 26.3 of the TRIPS Agreement. On Article (16)(b) of the draft Law, Yemen was asked to explain whether, in line with Article 26.1 of the TRIPS Agreement, the rights provided therein extended to articles bearing or embodying a design which was substantially a copy of a protected design. Yemen was also asked to clarify the purpose and scope of the exceptions to design owners' rights provided for by Article (17) of the draft Law. The draft Law appeared to provide for exceptions to the protection of industrial designs for scientific research, training or education, and other uses which did not unreasonably conflict with normal use or unreasonably infringe the owner's legitimate interests. This Member considered the proposed exceptions to be too broad and vague, and it was unclear whether coverage was limited to designs used only for non-commercial purposes. Yemen was requested to redraft this provision of the draft Law to clearly define the fair use exceptions for industrial designs. In addition, a Member asked Yemen to justify Article (18) of the draft Law providing for compulsory licenses of industrial designs. Yemen was reminded that the TRIPS Agreement permitted compulsory licenses of patents but there was no such provision for industrial designs. While taking account of the limited exceptions provided for in Article 26.2 of the TRIPS Agreement, this Member noted that Articles (3) and (4)(c) of the draft Law would extend protection to ornamental and aesthetic designs having no functional or technical usage. Yemen was asked to explain how the public interest would justify the involuntary use of protected ornamental and aesthetic designs with no functional or technical

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use. Article (18) of the draft Law could, therefore, significantly undermine the exclusive rights of the right holder.

228. The representative of Yemen replied that Article (16)(a) and (b) of the draft Law had been redrafted in accordance with Article 26.1 and 26.3 of the TRIPS Agreement. He said that exemptions from protection would not be accorded to designs that either directly or indirectly led to use for commercial purposes, and that Article (21) of the new Law would be in conformity with Article 26.2 of the TRIPS Agreement. In response to specific questions on the right of applicants to claim priority registration of a design and the period for priority, he said that Yemen was a signatory of the Paris Convention for the Protection of Industrial Property and that Article (5) of the new Law would address the issue of priority with regard to industrial designs. Concerning compulsory licensing, the representative of Yemen said that application of Article (18) of the draft Law was only envisaged in urgent circumstances or to prevent misuse of exclusive rights by the owner of the design. He added that Yemen would allow compulsory licenses to be issued in the public interest based on a reasoned decision by the relevant minister, and upon payment of equitable compensation.

229. The representative of Yemen added that the new Law "On Industrial Designs" had been adopted on 26 December 2010.

- Patents

230. The representative of Yemen said that Articles 68 to 73 of the Intellectual Property Rights Law No. 19/1994 defined the steps and procedures to register inventions and grant patents. The Ministry of Industry and Trade was responsible for the registration of patents in Yemen. However, due to lack of infrastructure and technical capabilities, no patents had been granted to date. Referring to secret inventions, he said that Article 73.1 of the Law identified such inventions as not being registered in the patent register, but this provision had never been applied. Members offered assistance to improve the patent registration process and suggested that Yemen might benefit from partnering with other intellectual property offices such as those in the GCC.

231. With regard to patentable subject matter, he said that the Intellectual Property Rights Law only considered an invention as novel and patentable if it had not been used before. The novelty and effective utility of an invention was determined in the examination process. Novelty was related to the essence of the invention and not to secondary elements of the subject matter. The Intellectual Property Rights Law did not provide patent protection for biological methods to produce new types of plants and livestock, and prohibited patents for inventions violating Shari'a and contravening public

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order or morality. In his view, the exclusions from patentability provided for in Article 65.1 of the Law were compatible with Article 27.2 of the TRIPS Agreement.

232. Some Members requested further information on the conformity of Yemen's patent legislation with Articles 27, 28.1(a) and (b), 31, 33 and 34 of the TRIPS Agreement. In reply, the representative of Yemen said that Articles 27, 28.1(a) and (b), 31, 33 and 34 of the TRIPS Agreement would be taken into account in revising the Intellectual Property Rights Law and by drafting new legislation. Legislation on compulsory licensing would comply with Article 31 of the TRIPS Agreement as well as the WTO Decision on TRIPS and Public Health (WT/L/641).

233. Having reviewed a draft of the new Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information", a Member noted that the non-patentable subject matter listed in Article (6) of the draft appeared to differ from the exceptions provided for in Article 27.2 and 27.3 of the TRIPS Agreement. Article (6)(e) of the draft indicated that natural living organs, tissues, cells, substances, nucleotides, blood, hormones and genes were not inventions and not patentable. Article (9) of the draft required inventors to provide evidence that any invention containing traditional knowledge, plant or animal material was sourced in a lawful manner. Yemen was asked to elaborate on the evidence required, the process for providing it, and the effect failure to provide evidence could have on the inventor's ability to obtain and enforce a patent. Yemen was reminded that Article 27.1 of the TRIPS Agreement conveyed that products and processes in all fields of technology were patentable subject matter provided the inventions met the requirements of novelty, inventive step, and industrial applicability. In reply, the representative of Yemen said that the non-patentable subject matters defined in Article (6) of the draft had been reviewed and checked for consistency with the exceptions indicated in the TRIPS Agreement. He stated that the substances listed in Article (6)(e) were not human inventions and did not meet the requirements of novelty, inventive step, and industrial applicability. In his view, Article (6) of the draft Law was in conformity with Article 27 of the TRIPS Agreement. The draft law did not specify the evidence required, but the inventor would be expected to indicate that any traditional knowledge, plant or animal material was sourced in a lawful manner by means of an official document issued by the concerned authorities. Evidence could be attached with the patent application or submitted at a later date.

234. In response to specific queries on the procedures and timeframe for completing pre-grant opposition proceedings, he noted that Article (13) of the draft Law provided for a patent opposition process. Yemen would redraft Article (13)(a) so that the written communication required for filing the opposition would state a reasoned basis for doing so. There was no defined time-frame for the process as it was dependant on the individual circumstances of the case. He said that Article (22) of

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the draft Law would establish the grounds for termination of protection of a patent, namely: (i) the expiry of the term of protection; (ii) failure to pay the annual fees for continuation of patent protection; and, (iii) a court ruling to this effect. Requests for termination could be directed to the courts if the patent was registered in violation of the provisions of the new Law.

235. Article (17) of the draft Law granted patent owners the right to exclude others from using the patent without consent. Concerning compulsory licensing, a Member considered Articles (36) through (39) of the draft Law to go beyond the provisions of Article 31 of the TRIPS Agreement on the use of patents without the authorization of the right holder. Specifically, the draft appeared to permit compulsory licensing for the "development of vital national economic sectors". Yemen was reminded that Article 31(b) of the TRIPS Agreement only authorized compulsory licensing in a national emergency, circumstances of extreme urgency, or in cases of public non-commercial use after efforts were made to obtain the permission of the patent holder on reasonable commercial terms and conditions. Article (36)(c) of the draft, however, appeared to indicate that national emergency, circumstances of extreme urgency or cases of public non-commercial use were merely three examples of a broader category of "public interest" grounds for compulsory licensing. A clarification was sought on how Article (36)(c) of the draft, providing for a broad "public interest" basis for a compulsory licence, was consistent with Article 31(b) of the TRIPS Agreement. Yemen was also asked to explain whether the requirements of Article 31(c), (e), (h), (g) and (j) of the TRIPS Agreement were provided for in the draft Law. In reply, the representative of Yemen said that compulsory licensing for the "development of vital national economic sectors" would not prejudice the legitimate rights of the patent holder and would be limited to public non-commercial use and cases of extreme urgency. Article (36)(e) of the draft Law provided the broad "public interest" basis for a compulsory licence which, in his view, would be consistent with the TRIPS Agreement. Article (36)(c) was drafted to meet the notification requirement in Article 31(b) of the TRIPS Agreement. His Government would modify and redraft certain provisions of the draft Law (Article (33)(b) and (c), Article (36)(e), (f), (h) and (i) and Article (37)) to be consistent with the requirements of Article 31(b), (c), (e), (h), (g), (j) and (k) of the TRIPS Agreement.

236. The representative of Yemen added that the new Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information" had been adopted on 12 January 2011.

- Plant variety protection

237. Asked whether Yemen had a sui generis system for the protection of plant varieties in line with Article 27.3 (b) of the TRIPS Agreement, the representative of Yemen said that Chapter Four of

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Law No. 20/1998 "On Agricultural Seeds and Fertilizers" provided the sui generis system and basis for plant variety protection in Yemen.

- Layout designs of integrated circuits

238. The representative of Yemen said that provisions to protect the layout designs of integrated circuits had been included in a new Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information", adopted on 12 January 2011.

- Requirements on undisclosed information, including trade secrets and test data

239. The representative of Yemen said that the Intellectual Property Rights Law No. 19/1994 did not specifically protect undisclosed information, including trade secrets and test data. Protection of undisclosed information had, however, been covered in Chapter Four (Articles (29) to (32)) of the new Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information". The protection of undisclosed information, including trade secrets and test data of the chemicals used in the preparation of pesticides would also be provided for in the implementing Regulation of Law No. 25/1999 "On Handling Pesticides for Plant Pests".

240. Having reviewed a draft of the Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information", a Member noted that Article (34) of the draft appeared to limit the information holders' rights to "preventing third parties from any infringing acts of unfair competition" and asked how Yemen would provide for the rights enumerated in Article 39.2 of the TRIPS Agreement, in particular the possibility of preventing information lawfully within the natural or legal persons control from being disclosed to, acquired by, or used by others without their consent in a manner contrary to honest commercial practices. This Member also noted that Article (33) of the draft Law appeared to authorize the disclosure of undisclosed marketing approval data five years after it was submitted to the competent authority, and requested Yemen to clarify this provision's consistency with the obligations of Article 39.3 of the TRIPS Agreement. In reply, the representative of Yemen said that Article (33) of the draft Law would be redrafted to comply with Article 39.3 of the TRIPS Agreement by according protection of undisclosed information submitted to the competent authorities for the marketing approval of chemical, pharmaceutical or agricultural products. Article (34) would also be redrafted to give the legal holder of undisclosed information the right to prevent information from being disclosed to, acquired by, or used by others without their consent in a manner contrary to honest commercial practices.

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241. The representative of Yemen added that the new Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information" had been adopted on 12 January 2011.

- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS

242. The representative of Yemen said that Article 81 of the Intellectual Property Rights Law and Article 4 of the Law No. 19/1999 "On Competition Promotion, Monopoly, and Commercial Deception Prevention" defined measures to control the abuse of intellectual property rights. Article 4 of the Competition Law was, in his opinion, consistent with the provisions of the TRIPS Agreement. He added that a new Law "On Monopoly and Anti-Competitive Behaviour" was in preparation.

243. In response to a query, he said that abusive and anti-competitive exercise of patent rights would be established pursuant to Article (36)(c) of the draft Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information". He said that a decision by a patent holder to exclude a third party not having the owner's consent from practicing the invention was not, by itself, sufficient grounds to deem the holder to be abusively exercising their rights or exploiting them in an anti-competitive manner (Article (36)(b)). Evidence would need to be provided by the plaintiff with proof that reasonable and sufficient efforts were made to obtain the consent of the patent holder.

- ENFORCEMENT

- Civil judicial procedures and remedies

244. The representative of Yemen said that Articles 114 and 124 of the Intellectual Property Rights Law No. 19/1994 provided specific remedies against infringements of copyright and related rights, trademarks and industrial designs. Civil and judicial procedures were governed by the Civil Procedures and Enforcement Law (Articles 103, 104, 106, 217, 227-229, and 231). Articles 16-25 set-out the litigation procedures. Articles 112 and 120 of the Evidence Law No. 12/1992 were relevant for obtaining evidence from the opposing party, but did not fully meet the requirements of Article 47 of the TRIPS Agreement. He added that in revising and drafting its intellectual property laws, specific remedies had been included to address infringements involving geographic indications, patents, protection of plant varieties, integrated circuits, misuse of confidential information and trade secrets. Information on the existing civil judicial procedures and remedies is provided in document WT/ACC/YEM/7/Rev.1.

245. Injunctive relief was provided in accordance with Article 115 of the Intellectual Property Rights Law, upon request, through (i) the seizure and confiscation of goods, documents and any other marks or objects used for imitation or counterfeiting. Revenue from the sale of such confiscated

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objects could be used for the settlement of damages or fines; (ii) the destruction of such objects, when necessary; (iii) publication of the infringement in newspapers or other media; and, (iv) a court order restraining the offender from future infringements. Article 116 of the Law allowed judicial authorities to seize infringing goods, appoint an expert to assess the profits derived from illicit use, and provided right holders the right to request compensation for damages. Article 304 of the Civil Law No. 14/2002 obliged infringers to compensate any damages caused, without prejudice to any other penalties stipulated in the laws in force, and Article 258 of the Civil Procedures and Enforcement Law No. 40/2002 authorized judges to order infringers to pay costs. Furthermore, Article 64 of the new Law "On the Protection of Copyright and Related Rights" provided for urgent injunctive relief for a right holder to prevent any violation or infringement of his/her rights through the courts. Measures included (i) termination of the infringement of a protected right; (ii) seizure of copies of the infringing work and the materials used to produce those copies; (iii) proof of the public claim for rhythm, acting or presentation, and discontinuation of an existing display or imposition of a ban in the future; (iv) appointment of a judicial guardian of the disputed work who would be entrusted to republish, display, produce or secure copies of the work, the resulting revenue being deposited in the court's treasury; and (v) establishment of an inventory of revenue resulting from publication or presentation by an expert appointed for that purpose, if a lien on revenue was necessary. He added that compensation for damages in intellectual property cases had been included in the new intellectual property right laws: Article 50 of the Law "On Trademarks and Geographical Indications"; Article 37 of the Law "On Industrial Designs"; Article 38 of the Law "On Patents, Utility Models, Integrated Circuits and Undisclosed Information"; and Articles 79 and 80 of the Law "On the Protection of Copyright and Related Rights".

246. The representative of Yemen added that the requirements of Article 45.2 of the TRIPS Agreement, providing for compensation of expenses, including attorney's expenses, were contained in Article 79 of the Law "On the Protection of Copyright and Related Rights". As for Yemen's compliance with the provisions of Article 46 of the TRIPS Agreement, he said that the new Law "On the Protection of Copyright and Related Rights" allowed the courts to authorize the destruction of infringing articles. Article 49 of the Law "On Trademarks and Geographical Indications" gave the courts the authority to dispose of infringing goods and the tools used to produce these goods.

247. In response to a specific question, he said that the provisions of the Laws "On Trademarks and Geographical Indications" and "On Industrial Designs" would only exempt public authorities and officials from liability for actions pertaining to protection or enforcement of intellectual property rights where actions were taken in good faith (Article 48.2 of the TRIPS Agreement).

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- Provisional measures

248. The representative of Yemen said that the Intellectual Property Rights Law No. 19/1994 and Articles 238-252 of the Civil Procedures and Enforcement Law included temporary measures broadly consistent with Article 50 of the TRIPS Agreement. In his view, compliance with the provisions of Article 50 had been fully ensured with the enactment of the new Laws "On the Protection of Copyright and Related Rights", "On Trademarks and Geographical Indications", and "On Industrial Designs", which provided Yemeni courts with the authority to order prompt and effective provisional measures to prevent infringement, preserve related evidence, and adopt provisional measures inaudita altera parte.

249. He added that the Intellectual Property Rights Law No. 19/1994 stipulated that "the owner of a trademark registry certificate or industrial design may request the court to seize products, goods, labels and other items that have a fake trademark or imitated industrial design or model, as a provisional measure until a dispute is settled by the judiciary". A right holder could apply for provisional measures through the court system, by means of an inaudita altera parte (ex parte) procedure. According to the new intellectual property laws, the court could, where appropriate, take any precautionary measures to stop customs from releasing counterfeit goods without notifying the other party, in cases where a delay might result in damage to the right holder. The other party was notified afterwards. Pursuant to the Civil Procedures and Enforcement Law, the holder of a temporary lien had to present the case and prove the veracity of the claim within eight days - otherwise the lien would be considered null and void.

250. The Department of Intellectual Property in the Ministry of Culture was responsible for field inspections to seize infringing or counterfeit copies of literary and artistic works. The level of administrative penalties applicable involving violations of copyright and related rights, trademarks, geographical indications, industrial design, patent and undisclosed information had been specified in the new intellectual property laws. The Law No. 25/1990 "On Press and Publications" contained supplementary penalties and temporary procedures pertaining to forged works.

- Administrative procedures and remedies

251. The representative of Yemen said that the Intellectual Property Rights Law No. 19/1994, the Civil Procedures and Enforcement Law, and the Law "On Press and Publications" provided for administrative procedures and remedies in compliance with Articles 42 through 49 of the TRIPS Agreement. He added that the administrative enforcement of intellectual property rights had been provided for in the new intellectual property laws.

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252. In accordance with Article 41(b) of the Law "On Trademarks and Geographical Indications", administrative staff with the status of judicial authority were entitled to enter and inspect shops and stores that sold, distributed, or produced goods bearing fake trademarks or industrial designs. Staff might initiate a lien and take custody of the materials and means used in committing the violation. The same procedures had been incorporated in Article 85(b) of the new Law "On the Protection of Copyright and Related Rights".

253. The Department of Intellectual Property in the Ministry of Culture was responsible for field inspections to seize counterfeit or fake copies of literary and artistic works, and to issue reports, in cooperation with other relevant agencies in Yemen. Although regulations and procedures in connection with field inspections had not been published, such inspections were initiated on the basis of a complaint filed by the right holder with the Department of Intellectual Property, together with supporting information, data, and material evidence of the infringement. He added that regulations and procedures in connection with field inspections would be published by the date of accession.

254. He added that the law enforcement agencies coordinated closely with the executive and judiciary to ensure the effective enforcement of the Intellectual Property Rights Law. His Government had sought to engage all law enforcement agencies, including the police, general prosecutors, customs authorities, and the relevant Ministries, to coordinate in the protection and enforcement of intellectual property rights. However, technical assistance, funding and capacity building was needed to improve enforcement.

- Special border measures

255. The representative of Yemen said that the new intellectual property laws would replace existing provisions dealing with border measures (Article 115 of the Intellectual Property Rights Law, Articles 104.6, 243, 252 and 339 of the Civil Procedures and Enforcement Law, and Articles 30 and 223 of the Customs Law No. 14/1990). Article 44 of the Law "On Trademarks and Geographical Indications" had provided the procedures enabling the right holder to suspend the release of counterfeit trademark goods. Similarly, the Law "On the Protection of Copyright and Related Rights" included provisions on border measures to meet the requirements of Articles 51 through 60 of the TRIPS Agreement.

- Criminal procedures

256. The representative of Yemen said that intentional acts of infringement covered by Article 124 of the Intellectual Property Rights Law No. 19/1994 were punishable by imprisonment for a period

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not exceeding six months, or a fine of not less than YRls 10,000. These two penalties were mutually exclusive and without prejudice to any stricter sanctions provided for in any other law, or the right to claim damages. In his view, the penalties were in accordance with Article 61 of the TRIPS Agreement, as either of the two punishments constituted a sufficient deterrent, and the penalties were consistent with the level of penalties applied for crimes of corresponding gravity. Beyond fines and imprisonment, the Intellectual Property Rights Law provided for supplementary penalties, such as the seizure, confiscation, and disposal of goods using counterfeited designs or marks, imitations or forgeries. Infringers were also prohibited from any further usage of the infringed intellectual property.

257. Without prejudice to stricter sanctions provided for in any other law, Article 104 of the Press and Publications Law punished violations covered by its provisions with a fine not exceeding YRls 10,000, or by imprisonment for a period not exceeding one year. The fine and imprisonment were mutually exclusive. In his opinion, either of the two punishments was in accordance with Article 61 of the TRIPS Agreement. The Press and Publications Law also contained supplementary punishment and temporary procedures pertaining to forged works, such as the closure of printing shops, publishing houses, or outlets dealing with artistic works, cinematography works and publications; and, the provision of fair compensation for damages. As a complementary punishment, the court could prevent the violator from practising his/her business for a period not exceeding one year.

258. Pursuant to Articles 210 and 211 of the Crimes and Penalties Law No. 12/1994, persons involved in counterfeiting or forging a trademark could face imprisonment up to three years. This punishment applied also to those using the forged trademark. Persons involved in forgery or counterfeiting on a commercial scale could face imprisonment up to five years. Article 103 of the Law gave courts the authority to impound the tools associated with the infringement.

259. A Member noted that the existing legislation and the draft laws in preparation did not appear to provide for criminal procedures and penalties sufficient to act as a deterrent for wilful trademark counterfeiting or copyright piracy on a commercial scale. Yemen would also need to allow for seizure, forfeiture, and the destruction of infringing goods and of any materials or implements used to produce these goods on a commercial scale. Yemen was requested to identify provisions in Yemeni Law that would meet these requirements in accordance with Article 61 of the TRIPS Agreement.

260. In reply, the representative of Yemen said that the new Laws "On the Protection of Copyright and Related Rights" and "On Trademarks and Geographical Indications" allowed, as appropriate, for the seizure, forfeiture, and destruction of infringing goods and of any materials or implements used,

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thereof and provided for imprisonment and deterrent level penalties for wilful trademark counterfeiting and copyright piracy. In his view, these provisions were consistent with Article 61 of the TRIPS Agreement.

261. For the reasons given above, the representative of Yemen requested that the Working Party grant a transitional period to 31 December 2016 to obtain technical assistance and equip the administration to implement fully the obligations of the TRIPS Agreement. The representative of Yemen confirmed that should a transition be granted for the implementation of the WTO Agreement on TRIPS, his government was prepared to undertake the following commitments. During the transition periods in the Action Plan for full implementation of the TRIPS Agreement, Yemen would fully apply Articles 3, 4 and 5 of the Agreement that provide for, inter alia, national treatment and MFN treatment under current legislation in place. Yemen would also ensure that any change made in its laws, regulations and practice during this period will not result in a lesser degree of consistency with the provisions of the TRIPS Agreement that existed on the date of accession.

262. The representative of Yemen further confirmed that, should a transition be granted, his Government would ensure that existing rates of infringement would not significantly increase and that any infringement of intellectual property rights would be addressed immediately in cooperation with the assistance from affected right holders. He further confirmed that during the transition period, the proper authority for obtaining permission to use plant or animal material or traditional knowledge would be specifically identified so that patent applicants could comply with the procedure set-out in Article 9 of Yemen's Patent Law. The representative of Yemen also confirmed that Article 33(b) of the Patent Law was limited to practices determined after judicial or administrative procedures to be anti-competitive, in compliance with Article 31 of the TRIPS Agreement, and that Article 33(b) would continue to be interpreted in this manner. Furthermore, he also committed to delete Article 39 of Law No. 23/2010 "On Trademarks and Geographical Indications", that read "A trademark containing a geographical indication may be registered if the right to such trademark has been acquired in good faith before enforcement date of this Law, or before such a geographical indication had been granted protection in the country of origin". This Article would be deleted at the latest by the end of 2013. In addition, the Yemeni representative addressed four specific points regarding the Copyright Law. First, he confirmed that by December 2014, Yemen will amend its Copyright Law No. 15 of 2012 to provide national treatment expressly for works of foreign nationals from non-Berne member countries whose works are first published in a Berne country, as well as for works of non-Berne member nationals who are domiciled in a Berne country. Second, Yemen committed to further clarify in the implementing regulations to the Copyright Law No. 15 of 2012 that law enforcement officials have the authority to conduct initial searches in order to discover evidence of commercial copyright

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infringement prior to any subsequent judiciary procedure for seizure. Third, the Yemeni representative confirmed that by December 2014 Yemen will clarify in the implementing regulations to Copyright Law No. 15 of 2012 that "small consignments" (referred to in Article 76 on shipments of copyrighted works of a non-commercial nature) are defined as "three or less copies". Finally, the representative said that Yemen will allow WTO Members to review the draft implementing regulations and any draft revisions to Copyright Law No. 15 of 2012 prior to their enactment. He added that Yemen would seek out all available technical assistance to ensure that its capacity to fully enforce its TRIPS-consistent legal regime upon expiration of the transition periods was assured and that Yemen would make available all legislation in promulgated form to WTO Members so that TRIPS-consistency could be confirmed. In response to requests from delegations for more specificity, the representative of Yemen presented an action plan setting-out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 23).

Table 23: Action Plan for the Implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights

Action Time-frame Copyright and Related Rights: - Reviewing Law No. 19/1994 on Intellectual Property (Copyright and Done Related Rights).

Drafting revised Copyright and Related Rights Law. Done

- Consultation on the draft Copyright and Related Rights Law; Done - Review by the Ministry of Legal Affairs; and Done - Endorsement by the Council of Ministers. Done

- Approval of Copyright and Related Rights Law by Parliament. Done - Issuance of Presidential Decree. Done Membership to the Berne Convention for the Protection of Literary and Artistic Done. Member since 14 April 2008. Works (1971). Training of technical personnel in copyright and related rights protection as well Continuous. as customs officials, police, judges and lawyers. Establishment of Copyright and Related Rights Information Centre. 2014 Reorganization and establishment of Copyright and Related Rights Office. 2014 Computerization of Copyright and Related Rights Office. 2014 Developing copyright and related rights regulations and work manuals. 2014 Enhancing public awareness on the protection of copyright and related rights. Continuous. Industrial Property: - Reviewing Law No. 19/1994 on Intellectual Property Done. (Trademarks, Industrial Designs, Patents)

Drafting laws to protect: Done. - Trademarks and Geographical Indications; - Industrial Designs; - Patents; - Undisclosed Information; - Layout - Design of Integrated Circuits; and - Anti-Competitive Practices in Contractual Licenses.

- Consultation on the draft Industrial Property laws; Done. - Review by the Ministry of Legal Affairs; and Done. - Endorsement by the Council of Ministers. Done.

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Action Time-frame

- Approval of the Industrial Property laws by Parliament. Done - Issuance of Presidential Decree: - Trademarks and Geographical Indications; Done - Industrial Designs; Done - Patents, Utility Models, Integrated Circuits and Undisclosed Done Information. Membership to the Paris Convention for the Protection of Industrial Property Done. (1967). Member since 15 November 2006. Training of technical personnel in Industrial Property protection as well as Continuous. customs officials, police, judges and lawyers. Establishment of Industrial Property Information Centre. 2013 Reorganization and establishment of Industrial Property Office. 2013 Computerization of Industrial Property Office. 2013 Developing industrial property regulations and work manuals. 2014 Enhancing public awareness on the protection of industrial property rights. Continuous. Full implementation of the Agreement on Trade-Related Aspects of Intellectual 31 December 2016 Property Rights (except with respect to patents and undisclosed information of pharmaceutical products covered by the Doha Declaration on TRIPS and Public Health).

263. The representative of Yemen confirmed that Yemen would apply the Agreement on Trade-Related Aspects of Intellectual Property Rights no later than 31 December 2016 according to the Action Plan in Table 23 with the understanding that during this period protection for intellectual property rights listed in paragraphs 261 and 262 would be applied in Yemen. The Working Party took note of this commitment.

VI. POLICIES AFFECTING TRADE IN SERVICES

264. The representative of Yemen said that the services sector employed over 32 per cent of the work force and was estimated to account for approximately 36 per cent of GDP in 2008. The main sub-sectors were transportation, communications, storage, wholesale and retail trade, real estate, construction, insurance and financial services. Trade in services was mainly operated by the private sector. However, his Government was the exclusive supplier of television, radio and fixed-line telephone services.

265. Several Government departments and bodies were involved in the regulation of services. The Ministry of Industry and Trade was responsible for insurance and certain professional services; the Central Bank of Yemen supervised banking services; the Ministry of Communications was responsible for telecommunications and postal services; the Ministry of Social Affairs and Labour regulated the movement of natural persons; the Ministry of Education was responsible for educational services; the Ministry of Public Health and Population for health services; the Ministry of Transport and Maritime Affairs for land, air and sea transportation; the Ministry of Public Works and Urban Development was responsible for engineering and construction services; the Ministry of Tourism and Environment regulated tourism and environmental services; and, the Ministry of Oil and Minerals was responsible for

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services related to petroleum products. Other bodies and professional associations playing a role in the regulation of services included the General Authority for Maritime Affairs, the General Authority for Civil Aviation and Meteorology, the Environment Protection Authority, the Syndicate of Medical Doctors and Pharmacists, the Syndicate of Dentists, the Syndicate of Lawyers, the Association of Tourism and Travel Agencies, the Hotels Union and Hotels Association, the Association of Chartered Accountants, the General Federation for Chambers of Commerce and Industry and the Insurance Union.

266. The representative of Yemen said that the Ministry of Social Affairs and Labour issued work permits to foreigners upon request from their employers. Entry visas were subsequently granted in accordance with the issued work permit. A work permit was valid for one year and could be renewed annually for up to five years against a fee of YRls 12,000, stipulated in the Cabinet Decision and Labour Law No. 5/1995. In his opinion, the fee was nominal and did not cover fully the administrative costs incurred. In addition to the work permit fee, YRls 5,000 was collected for a vocational training fund established to train workers in the private sector.

267. The procedures and criteria for foreigners to obtain licenses and provide professional services were governed by various laws, including the Lawyers' Profession Law No. 31/1999, the Medical Professions and Assisting Medical Professions Law No. 26/2002, and the Auditing Accounts Law No. 26/1999. These Laws established standards and regulated the participation or involvement of foreign professionals in the respective professions. The criteria for obtaining professional licenses were the same for Yemeni and foreign professionals. The criteria were published in the Official Gazette. The requirements (documentation, fees, and processing time) to obtain a licence varied with the type of professional service.

268. Regarding legal services, Article 59 of the Lawyers' Profession Law No. 31/1999 stipulated that services related to the submission of claims or pleas before a court of law were limited to lawyers who were Yemeni nationals. Foreign lawyers were not permitted to practice law except through a licensed Yemeni lawyers' office; by permission from the Minister of Justice; and, provided they did not plead in more than two cases per year. Furthermore, Yemen required reciprocal treatment from the home country of the foreign lawyer. Legal consultancy services not involving pleading in Yemeni courts could be provided by foreign lawyers and legal service providers if they operated with Yemeni participation as a joint venture or through a licensed Yemeni office. The representative of Yemen confirmed that, upon accession, all market access and national treatment limitations on legal advisory services in foreign law and international law, other than general Mode 4 limitations, would be removed.

269. Yemeni accounting and auditing firms were granted licenses to practice pursuant to the Auditing Accounts Law No. 26/1999, if certain conditions were met. The company had to be a general

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partnership with its head office in Yemen, all partners had to be chartered accountants with licenses to practice, and the chartered accountant could not practice privately or be a partner of more than one accounting firm. Foreigners (natural or legal persons) had to fulfill certain additional requirements to obtain a licence to provide accounting and auditing services in Yemen. Among the requirements, foreigners were obliged to take one or more Yemeni chartered accountant as partner(s); all partners had to be registered, and the partnership contract had to be submitted to the competent authorities in Arabic; the foreign partner(s) had to be licensed to practice as an auditor or accountant in his/her home country; at least one of the managers had to be a Yemeni partner and at least two thirds of the technical staff working in the firm had to be Yemeni nationals. The Ministry of Industry and Trade issued licenses on the basis of recommendations made by the Chartered Accountants Certification Committee. The registration fee amounted to YRls 10,000, and the licence fee was YRls 25,000. On average, applications were processed and examined within three weeks. The representative of Yemen confirmed that foreign accounting and auditing firms legitimately established in Yemen were not restricted in supporting their services from offices outside of Yemen. This treatment also applied to architecture, engineering, integrated engineering, urban planning and landscape architecture service suppliers.

270. Concerning management consulting and related services, he said that foreign management consulting companies were eligible to set up branches in Yemen in accordance with the provisions of Law No. 23/1997 "On Regulating Foreign Houses and Companies Representation".

271. Regarding telecommunications services, a monopoly venture with Cable and Wireless Limited had expired at the end of 2003 and his Government was currently the exclusive provider of international telecom services (through TeleYemen). The Ministry of Telecommunications and Information Technology had concluded a five-year management contract with France Telecom. The national telecommunication services (PSTN) network was operated exclusively by the Public Telecommunications Corporation. International and national telecommunication services via satellite were provided by TeleYemen and the Public Telecommunications Corporation, respectively. However, mobile telecommunications services, including international mobile personal telecommunications services via satellite (GMPCS), were open to foreign participation. Further, the representative of Yemen confirmed that all market access limitations on telecommunications would be lifted by 1 January 2015 in accordance with Yemen's Services Schedule. Satellite dishes were permitted for receiving signals for radio, television and the Internet. Internet service providers were granted licenses pursuant to Cabinet Decision No. 4/2001 to establish and provide internet services on a competitive basis. The internet service providers were required to rent transmission links from the Public Telecommunications Corporation. He added that Yemen had no legislation regulating

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electronic commerce, and further confirmed that Yemen would not impose market access or national treatment restrictions on the purchase of goods via the Internet.

272. Yemen did not intend to revise its policies regarding the acquisition of land rights by foreign investors. Mode 3 retail services were reserved for Yemeni nationals or Yemeni legal entities, including joint ventures.

273. Banking services were governed by Law No. 14/2000 "On the Central Bank of Yemen", Law No. 38/1998 "On Banks", Law No. 21/1996 "On Islamic Banks", and Regulation No. 2/1997 "On Provisions and Procedures for Granting Licenses for Banking Activities". Foreign equity was limited to 60 per cent in commercial banks. The representative of Yemen stated that under Yemeni corporate law, full management control could be exercised by investors holding 60 per cent of voting shares in a company. The purpose of the equity cap was to encourage the participation and ownership of Yemeni nationals in banking activities.

274. Foreign-owned banks were treated on par with locally-owned banks. No limitations applied in the scope of business operations of foreign banks in either commercial or Islamic banking. A foreign bank could obtain a licence from the CBY to provide banking services by applying to the Governor of the CBY. The application to open a branch or office of the foreign bank was reviewed, and based on technical recommendations and the rating by an international rating agency, a temporary licence was issued. A final licence was approved and issued by the Board of Directors of the CBY provided the minimum designated capital (for both foreign-owned and locally-owned banks) of YRls 6 billion had been transferred. The representative of Yemen stated that other prudential requirements relating to the establishment of foreign-owned banks or branches of foreign banks would be applied on a non-discriminatory basis. The work plan, including budget estimates, should cover the first three years of operation from the proposed date of commencement. The CBY also evaluated the suitability of the proposed office or branch premises of the new bank considering its location, the availability of a fully protected room for the safekeeping of money and documents, as well as the bank's outfitting.

275. Some Members of the Working Party asked whether Yemen planned to authorize the participation of foreigners in security underwriting, commodity brokerage services and currency exchange operations. In response, the representative of Yemen stated that Yemen currently did not regulate securities trading, money broking, asset management or clearance and settlement services, but agreed to permit foreign firms to engage in such businesses, on a non-discriminatory basis, when such businesses were authorized and regulated.

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276. Foreign equity participation in Yemeni insurance and re-insurance companies was limited to 25 per cent in accordance with Law No. 37/1992 "On Supervision and Monitoring of Insurance Companies and Brokers" and Law No. 9/1997. No benefits or privileges were extended to the State-owned insurance companies. Subject to approval of the Minister of Industry and Trade, Yemeni nationals were allowed to purchase insurance offshore when local insurance companies were unable to provide the required coverage. No more than 50 per cent of the total coverage could be purchased overseas. The representative of Yemen confirmed that, upon accession, all market access and national treatment limitations would be removed for reinsurance, retrocession, intermediation and auxiliary insurance services. Furthermore, three years after accession, Yemen would permit branching for direct insurance, and cross border market access for MAT insurance. The representative of Yemen confirmed that Yemen would not impose limitations on national treatment in these areas.

277. As for tourism, the representative of Yemen said that the tourism sector employed more than 40,000 people, and accounted for about 2 per cent of Yemen's GDP. Between 2000 and 2004, annual income and receipts from tourism had amounted to US$105 million. His Government sought to strengthen the forward and backward linkages of tourism with other sectors of the economy; generate employment opportunities; increase foreign exchange inflows; develop new regions or sites as tourist areas; promote ecological and cultural tourism; and, improve the quality of tourism services in Yemen.

278. Asked about privatization in the maritime transportation sector, he said that the Ship Dock Yards Company was the only entity in the process of privatization.

VII. TRANSPARENCY

- Publication of information on trade

279. Some Members requested further information on Yemen's implementation of the transparency requirements prescribed in Article X of the GATT 1994, Article III of the GATS, and other transparency-related provisions in the WTO Agreements, and Yemen's ability to ensure the publication of all relevant legislation or regulations related to the implementation of the WTO Agreements from the date of accession. If Yemen had no law requiring the Government to seek public comment on draft laws and regulations, and the provision of draft laws and regulations to interested parties for comment was not common practice, Yemen was requested to explain how it would implement its obligations under the WTO Agreements.

280. The representative of Yemen replied that all laws were published in the Official Gazette pursuant to the Constitution and Law No. 27/1993. Laws were circulated within two weeks of issue,

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and entered into force 30 days after the date of publication. The Official Gazette was distributed widely and was available to all governmental bodies and authorities at the local and central level. The Official Gazette was also available to the general public through annual subscriptions or direct sales at reasonable prices from bookshops, newsstands, and Government offices. Although his Government was not legally required to give the public an opportunity to review draft laws and regulations, the public was regularly involved in the process of drafting legislation through meetings, seminars and workshops, and their views were taken into account. He stated that Yemen would abide by the transparency-related provisions in the WTO Agreements, and would ensure the publication of all relevant legislation or regulations related to the implementation of the WTO Agreements from the date of accession.

281. The representative of Yemen confirmed that, upon accession, Yemen would fully and promptly implement Article X of the GATT 1994, Article III of the GATS, Article 63 of the TRIPS Agreement, and other transparency provisions in the WTO Agreements requiring notification and or publication. He further confirmed that no law, regulation, judicial decision, administrative rulings, or other measures of general application pertaining to or affecting trade in goods, services and TRIPS would become effective prior to its publication in the Official Gazette. The publication of such laws, regulations and other measures would include the effective date of these measures and list the products and/or services affected by the particular measure. The Working Party took note of these commitments.

- Notifications

282. The representative of Yemen confirmed that, at the latest within six months of the entry into force of the Protocol of Accession, Yemen would submit all initial notifications required by the WTO Agreement. Any laws, regulations, or other measures subsequently enacted by Yemen, and which were required to be notified pursuant to the WTO Agreement, would also be notified in a time and manner consistent with WTO requirements. The Working Party took note of these commitments.

VIII. TRADE AGREEMENTS

283. The representative of Yemen said that his Government had signed a Free Trade Area (FTA) Agreement with Iraq in August 2001. Following the ratification of this FTA in June 2002, all goods originating in Iraq and Yemen should enjoy duty-free treatment in bilateral trade. However, this agreement had not yet been fully implemented in practice. Yemen was also a party to a preferential Economic, Trade, Investment and Technical Cooperation Agreement with the Kingdom of Saudi Arabia, signed in August 1996, and in force since August 2000. Under the terms of this

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Agreement about 85 per cent of Yemen's exports to Saudi Arabia had been exempted from customs duties and non-tariff restrictions in 2001. At present about 6.4 per cent of the tariff lines had been fully liberalized under this Agreement. Yemen has become a Member of the Greater Arab Free Trade Area in 2005.

284. Goods not covered by the FTA with Iraq and the preferential trade agreement with the Kingdom of Saudi Arabia included products prohibited for religious, environmental or security reasons in accordance with the laws and regulations of Yemen, Iraq and the Kingdom of Saudi Arabia. Products originating in the free zones of these countries were also excluded from the preferential arrangements. Iraqi exports to Yemen required a minimum of 40 per cent Iraqi value-added to confer origin status, while the exports of Yemen, as an LDC, required only 20 per cent local value-added to qualify for duty-free treatment under the FTA. Under the preferential agreement with the Kingdom of Saudi Arabia, Yemeni exports required minimum 40 per cent local value-added to qualify for exemptions from custom duties and non-tariff restrictions.

285. Asked about the notification of Yemen's preferential arrangements, the representative of Yemen stated that the existing preferential trade agreements had been concluded with other developing countries in accordance with the Enabling Clause.

CONCLUSIONS

286. The Working Party took note of the explanations and statements of Yemen concerning its foreign trade regime, as reflected in this Report. The Working Party took note of the commitments given by Yemen in relation to certain specific matters which are reproduced in paragraphs 42, 45, 57, 59, 68, 75, 80, 86, 88, 92, 93, 107, 115, 122, 125, 128, 130, 135, 148, 165, 178, 180, 184, 188, 197, 263, 281, 282 of this Report. The Working Party took note that these commitments had been incorporated in paragraph 2 of the Protocol of Accession of Yemen to the WTO.

287. Having carried out the examination of the foreign trade regime of Yemen and in the light of the explanations, commitments and concessions made by the representative of Yemen, the Working Party reached the conclusion that Yemen be invited to accede to the Marrakesh Agreement Establishing the WTO under the provisions of Article XII. For this purpose, the Working Party has prepared the draft Decision and Protocol of Accession reproduced in the Appendix to this Report, and takes note of Yemen's Schedule of Concessions and Commitments on Goods (document WT/ACC/YEM/.../Add.1) and its Schedule of Specific Commitments on Services (document WT/ACC/YEM/.../Add.2) that are annexed to the draft Protocol. It is proposed that these texts be adopted by the General Council when it adopts the Report. When the Decision is adopted,

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the Protocol of Accession would be open for acceptance by Yemen which would become a Member 30 days after it accepts the said Protocol. The Working Party agreed, therefore, that it had completed its work concerning the negotiations for the accession of Yemen to the Marrakesh Agreement Establishing the WTO.

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ANNEXES

Laws, Regulations and Other Information Provided to the Working Party of Yemen

- Law No. 14/2000 "On the Central Bank of Yemen"; - Law No. 38/1998 "On Banks"; - Law No. 21/1996"On Islamic Banks"; - Republican Decree "On Law No. 19/1995 Pertaining to Money Exchange"; - Law No. 22/2002 "On Investment"; - Investment Law No. 15/2010; - Draft Investment Law; - Law No. 24/2002 "On Mines and Quarries"; - Law No. 45/1999 "On Privatization"; - Republican Decree "On Law No. 19/1999 Concerning Competition Promotion, Monopoly, and Commercial Deception Prevention"; - Law No. 4/2000 Concerning the Local Authority; - Ministerial Decision No. 314/1996 "On Granting Commercial Registration, Import Category"; - Republican Decree on Law No. 32/1991 "On Commercial Law"; - Commercial Registrar Law No. 33/1991 (Article 11); - Law No. 22/1997 "On Commercial Companies"; - Law No. 1/2008 "On Amending Article No. 28 of Law No. 23/1991 with Respect to Trade Law"; - Request for an Approval to Import Agricultural Fertilizers; - Law No. 14/1990 "On Customs"; - Draft Amendments "On Some Articles of the Customs Law No. 14/1990"; - Draft Decree of the Prime Minister "Concerning Customs Valuation According to Article VII of the GATT"; - Law No. 19/2001 "On General Sales Tax" and amendments in Law No. 42/2005; - Draft Law "On Safeguards and National Production Protection from Impacts of Harmful International Trade Practices"; - Republican Decree Law No. 127/1997 "On the Forming of the Supreme Council for Exports - Development and its Technical Office"; - Law No. 44/1999 "On Standardization, Metrology and Quality Control"; - Summary of Decision No. 21/2003 "On Regulating By-Law of YSMO and its Branches in the Governorates"; - Decision No. 3/2001 "On Issuance of Conformity Certificate to Metrological Standards By-Law"; - Decision No. 9/2009 with YSMO Regulation "On Inspection Charges Levied on Imported Goods"; - Decision No. 11/2001 "On Approving YSMO Quality Mark for National Products"; - Decision No. 13/2001 "On Regulations of Special Rules and Procedures to Inspection and - Check Processes for Local and Imported Goods and Products"; - Decision No. 2/2003 "On By-Law of Evaluating Conformity of Goods and Enterprises to Accredited Metrological Standards"; - Decision No. 27/2006 "On By-Law of Granting Yemeni Quality Mark"; - Chairman's Decree No. 6/2008 "On the By-Law for the Preparation of the Yemeni Standards"; - Draft Chairman's Decree "On the Regulation to Set Yemeni Standards"; - Conformity Certificate; - Guidelines for the International Conformity Certification Programme; - Law No. 32/1999 "On Plant Quarantine"; - Law No. 17/2004 "On the Organization and Protection of Livestock";

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- Law No. 13/2002 "On Control of Food and its Circulation"; - Republican Decree By-Law No. 38/1992 "On Control of Food and its Circulation"; - Yemeni Standard No.794/2004 "On Requirements for Animal Slaughtering, in Accordance with the Provisions of Islamic Shari'a"; - Health Certificate for Export of Bovine Meat; - Law No. 4/1993 "On Free Zones"; - Law No. 3/1997 "On Government Bids, Tenders and Warehouses"; - Draft Law "On the Protection of Copyright and Related Rights"; - Ministerial Decision No. 353/1995 "On Implementation of Trademarks Regulations"; - Draft Law "On Trademarks and Geographical Indications"; - Draft Law "On Industrial Designs"; - Draft Law "On Patents, Utility Models, Layout-designs of Integrated Circuits and Undisclosed Information"; - Article 304 of the Civil Law No. 14/2002; - Civil Procedure and Enforcement Law No. 40/2002; - Articles 26, 103, 210 and 211 of the Crimes and Penalties Law No. 12/1994; - Republican Decree Law No. 12/1994 "On Crimes and Penalties"; - Republican Decree "On Law No. 5/1995 'On Labour Law'"; - Law No. 26/1999 "On Auditing of Accounts"; - Law No. 31/1999 "On Regulation of Lawyers' Profession"; - Law No. 26/2002 "On Medical and Pharmaceutical Profession"; - Republican Decree "On Law No. 38/1991 Pertaining to Wired and Wireless Telecommunication", as amended; and - Republican Decree "On Law No. 37/1992 'On Supervision and Control of Insurance Companies and Agents'", as amended.

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Table 3: State-owned Enterprises

State Capital Area of Supervising Agency/ Chairman of Enterprise Shareholding (Million Specialization Ownership the Board (per cent) Rial) Public 100 Provision of Ministry of Kamal Telecommunication telecommunication Telecommunication Aljabri Corporation services Public Corporation 100 Water distribution Ministry of Water Ibrahim Al of Water and and sanitation and Environment Mahdi Sanitation Public Electricity 100 Electricity Ministry of Dr. Mustafa Corporation generation and Electricity Bahran distribution Public Cement 100 400 Manufacturing and Ministry of Industry Amin Al Manufacturing and marketing of and Trade Shaibani Marketing cement Corporation Public Textile and 100 200 Manufacturing of Ministry of Industry Mohamed Clothing textile and Trade Hajeb Corporation Yemen Insurance 100 Insurance services Ministry of Finance Ahmed Ali and Re-Insurance Haddash Company Yemen 95 Provision of Ministry of Kamal International international Telecommunication Aljabri Telecommunication telecommunication Company services (TeleYemen) Marib Poultry 68 190 Production of eggs Ministry of Industry Dr. Hassan Company and importation of and Trade. Alfwsail production inputs (e.g. feedstuff, vaccines) Yemen Airways 51 Aviation Ministry of Abdul Khaliq Transportation Al Qadi The Yemen Bank 51 1,250 Banking services Ministry of Finance Abdullah for Construction Salem Al and Development Jefri Yemen Libyan 50 US$50 Investment Yemen Libyan Abdullah Holding Company million Holding Company Mohammed Esshaq Yemeni Kuwaiti 42 276 Real estate Yemeni Kuwaiti Khalid Al Real Estate Real Estate Obaidi Development Development Company Company National Tobacco 41.5 600 Manufacturing of Ministry of Industry Tawfeeq Al and Matches cigarettes and and Trade Ahmer Company matches Marib Insurance 37 100 Insurance The Yemen Bank for Ali Hashim Company Reconstruction and Development Saba Insurance 9 100 Insurance Mohamed Company Mustafa Arab Insurance 4 100 Insurance Adel Company Albanna

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Table 4: Privatization

Enterprise Status I. Projects subject to Privatization Industrial Sector General Corporation for Salt, Aden Evaluated Biscuit and Candy Factory, Aden Privatized, ownership transferred to private sector Automatic Bakery, Aden Privatized, ownership transferred to private sector Dairy Factory, Aden Liquidated Canada Dry Factory, Aden Resituated to original owner National Tanning Factory, Aden Resituated to original owner Tomato Paste Factory, Lahj Liquidation in progress Textile and Spinning Factory, Aden Privatization approved though leasing National Company for Aluminium Manufacturing, Evaluation decision issued for privatization Aden National Company for Sponge and Metal Furniture Privatized and sold to private sector Ltd., Aden Al Thawra Metal Products Privatized, ownership transferred to private sector The Public Bakery Equipment sold land leased for other purposes Public Corporation for Industrial Estate Liquidation in progress Yemen Salt and Gypsum Mining and Marketing Co. Privatized, ownership transferred to its employees Leather Shoe Factory Land and building resituated to original owner and equipment sold Leather Products Cooperative Land and building resituated to original owner and equipment sold Martyrs' Garments Factory Land and building resituated to original owner and equipment sold Vegetable Oil Factory Equipment sold, land leased for 30 years Soap Factory Equipment sold Women's sewing Cooperative Liquidation Emulsion and Paints Company Privatized Agricultural and Irrigation Sector General Company for Potato Seed Production, Evaluation study approved, privatization in progress Dhammar General Company for Vegetable Seed Production, Privatized, ownership transferred to private sector Saiyoun Agricultural Machinery Rental Station, Saiyoun Privatized, ownership transferred to its employees General Corporation for Digging Well Liquidated Dates Packing Unit, Saiyoun Liquidation in progress General Cooperation for Agricultural Services Evaluation study has approved, privatization procedures under progress Dar Sa'ad Poultry Liquidated Transport Sector General Corporation for Land Transport Evaluation privatization is in progress Aden Dockyards Study in progress Airport Ground Handling Services Fishery Sector Central Unit for Maintenance and Services Study in progress Shograh Fish Canning Factory, Abyan Announced publicly for privatization, no offers received negotiation in progress for the sale of factory Port of Nashtonne, Al-Mahra Privatization approved through leasing

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Enterprise Status Trade Sector Consumption Society for State, Public, and Mixed Liquidation Sector Employees General Corporation for Foreign Trade and Grain Liquidation in progress Public Corporation for Building Material Trade/Aden Liquidation in progress Public Corporation for Textile and Electric Liquidation Supplies/Aden Yemen Company for Free Trade (Al-Nasr)/Aden Liquidation in progress Al-Hudaidah Grain Silos Company, Al-Hudaidah Has been privatized and sold to private sector Public Corporation for Building Material Trade in Liquidation in progress Lahej, Abyan, Shabowah, and Hadramout Banking Sector Cooperative & Agricultural Credit Bank Restructuring Industrial Bank Liquidated National Bank of Yemen Evaluation Study concluded Housing Credit Bank Study in progress Oil Sector Aden Refinery Company Tourism Sector Gold Mohuer (Sheraton) Hotel, Aden Sold to private sector Diplomatic Club, Aden Sold to private sector Yemeni Club, Aden Sold to private sector Sailors' Club, Aden Sold to private sector Nashwan Club Sold to private sector Labors' Isle Resort, Aden Sold the site to private sector II. Projects that have been Privatized or Liquidated Aden Hotel (Aden) Privatized 26 September Hotel (Aden ) Privatized Al-Hilal Hotel (Aden ) Privatized Ardh Al-Ganateen Hotel Privatized Thala Hotel Privatized Public Poultry Corporation (Aden) Liquidated Rosaba Farm Privatized Fruits and Vegetables Corporation Liquidated National Shipping Company Privatized Yemen Navigation Lines Company Identified for liquidation Yemen Investment and Finance Company Liquidated

Table 7: Other Duties and Charges on Imports Page 104 WT/ACC/SPEC/YEM/5/Rev.5 HS No. Description Duty/Charge Purpose Legal Reference Code 1. 24.02 Cigarettes YRls 1 per pack - A financial resource to contribute to "Illiteracy - Law No. (28) of 1998 on Illiteracy Eradication and Adult Learning Agency" that Eradication and Adult Learning. aims at, inter alia, eradicating illiteracy and providing opportunities for adult education. 2. - Packages entering by YRls 1 per package - A financial resource to contribute to the - Law No. (11) of 2002 on the land, sea, or air ports "Heritage and Cultural Development Fund" Establishment of Heritage and Cultural which aims at, inter alia, contributing to the Development Fund. cultural development, documenting and maintaining heritage through different programmes, projects and activities.

- Packages entering by YRls 10 per package - A financial resource collected by the - Cabinet Decision No. (283) of 2001 on land- or sea-ports governorates aiming at funding economic and specification of local fees in social plans and projects. implementation of Article (123) of Local Authority Law No. (4) of 2000.

- Packages entering by YRls 20 per package - A financial resource collected by the - Cabinet Decision No. (283) of 2001 on air ports governorates aiming at funding economic and specification of local fees in social plans and projects. implementation of Article (123) of Local Authority Law No. (4) of 2000. 3. - Customs declaration YRls 100 for each - A financial resource contributing to the - Law No. (2) of 2002 regarding form form "Handicapped and Rehabilitation Fund" which Handicapped Care and Rehabilitation aims at, inter alia, funding programmes, Fund. projects and activities in favour of the handicapped.

Table 8: Fees and Charges for Services Rendered on Imports WT/ACC/SPEC/YEM/5/Rev.5 S/N HS Code Description Fee Purpose Legal Reference 1. A. Feedstuff inputs for animal health: Fees for quarantine services Law No. 17/2004 on - Ingredients for feedstuff - YRls 30 per tonne including the collection and Protection and Regulation of (cereals, soya, etc.) transfer of samples to an Animal Resources. - Concentrations and additives of - YRls 50 per tonne accredited laboratory feedstuff Products covered in - Drugs, vaccines, antiseptics, etc. - 1% of the value of the Chapter 02.00 invoice B. Meat of animal and poultry - Chilled meat - YRls 400 per tonne - Frozen meat - YRls 500 per tonne 01.02 01.04 C. Live animals, edible eggs and eggs Products covered in for hatching: chapter - Bovine animals and camels - YRls 120 for each animal 04.07-08 - Sheep and goats - YRls 70 for each animal - Chicken one day old for - YRls 3 for each chicken 01.06.39 breeding 03.01.10 - Chicken one day old for - YRls 5 for each chicken 23.09.10 hatching - Eggs for hatching - YRls 1 per egg - Eggs - YRls 2 per egg - Ornamental fish and birds put - 2% of the value of the up for trading invoice - Dog or cat food - 1% of the value of the invoice 2. Products covered in Plant consignment - YRls 2,000 - Import permit fee - Law No. 32/1999 on Chapter 06.00 Plant Quarantine. - YRls 2,000 - Fees for a form of the - Ministerial Decree procedures related to the No. 29/2002 on plant quarantine of each determining the fees to be consignment charged on plant - YRls 3,000 - Lab examination costs for consignments which are each type or variety of subject to the provisions of consignment of seeds, the Law on Plant tubers, bulbs, rhizomes

Quarantine and the Page 105 seedlings, corms conditions for exemption - YRls 3,000 - Lab examination costs for from such fees. each type or variety of consignment of manufactured organic

S/N HS Code Description Fee Purpose Legal Reference fertilizers or artificial soil. Page 106 WT/ACC/SPEC/YEM/5/Rev.5 - YRls 50 - For each 20 seedlings or suckers - YRls 100 - For each bunch of cuttings (not more than 50 cuttings) 3. 36.01-04 Explosives and Fireworks - 2% of the value of Fees for import permit. Law No. 40/1992 on importation Regulation of Possession of Weapons and Ammunitions and Trading thereof. 4. 38.08 Pesticides - Two per thousand Fees for import permit. Law No. 25/1999 on (2/1000) of the Regulation of Pesticides importation value Circulation. 5. Chapter 31 Fertilizers - YRls 3,000 for each - Fees for import permit Decision of the Minister of permit Agriculture No. 43/2005 on - Fees for lab. exam Fees for Services of - Determined according to Registration and Examination the cost of each item of Seeds and Agricultural Fertilizers. 6. Included in chapter 12 Seeds - YRls 3,000 for each - Fees for import permit Decision of the Minister of permit Agriculture No. 43/2005 on - YRls 3,000 - Fees for lab. exams Fees for Services of Registration and Examination of Seeds and Agricultural Fertilizers. 7. - Included in Artistic and literary works - YRls 5,000 - Fees for import permit for - The Press and Publications chapter 49 publications, stationery, Law No. 25/1990 and its newspapers and magazines regulation.

- Included in - YRls 10,000 - Fees for import permit of - Decision of the Minister chapter 37 cinema films and their of Culture and Tourism distribution No. 76/1994 on the Issue of Permit Fees for - YRls 10,000 - Fees for import permit for Printing and Publishing video films and cassettes Houses, Cinema, and and their distribution Stores of Publications Display. - Included in - YRls 5,000 - Fees for import permit for chapter 85 audio tapes and CDs and their distribution 8. Animal wealth - YRls 1,000 for each - Fees for import permit Law No. 17/2004 on permit Regulation and Protection of Animal Resources.

S/N HS Code Description Fee Purpose Legal Reference

9. Drugs and medical appliances - 1% for each importation - Fees for import permit Republican Decree WT/ACC/SPEC/YEM/5/Rev.5 application No. 44/1971 on the Establishment of the Supreme Board of Drugs and Medical Appliances. 10. Goods in warehouses - 3% of the value of - Fees for warehouse - Customs Law warehoused goods supervision No. 14/1990. - Decision of Vice- Prime Minister, Minister of Finance, No. 399/2002 on Standardization of Supervision fees Specified for Private and Real Warehouses. 11. Goods subject to accredited standards Fees applied in accordance with Fees to issue assessment - Decision of the Minister YSMO Regulation "On certificates of Industry and Trade Inspection Charges Levied on No. 2/2003 on the Imported Goods" replacing the Regulations of fees of one per thousand of the Conformity Assessment value of consignment of Goods and Enterprises (minimum YRls 10,000 - to Accredited Standards. maximum YRls 200,000) - Decree No. 9/2009 "On Regulation of Examination Services and Inspection Fees" with YSMO Regulation "On Inspection Charges Levied on Imported Goods". 12. - Customs declarations (all forms) - YRls 60 for each customs Publication fees - Customs Law declaration No. 14/1990. - Overtime form - YRls 60 for each form - Decision of the Minister - Customs declaration for vehicles - YRls 500 for each of Finance No. 182/1994 customs declaration on Amendment to Decision No. 302/1990 concerning the

determination of the Page 107 value of certain prints related to customs paper process and procedures of their collection.

S/N HS Code Description Fee Purpose Legal Reference

13. A. Parcels placed in warehouses and Service fees - Customs Law Page 108 WT/ACC/SPEC/YEM/5/Rev.5 stores: No. 14/1990. - Parcel weighing 50kg or less - YRls 15 per parcel a week - Decision of the Minister or less than a week of Finance No. 347/1990 - Parcel weighing more than 50kg - YRls 20 per parcel a week on determination of or less than a week services fees on goods B. Parcels placed in yards of customs placed in yards, and free zones as follows: warehouses, stores, and - Parcel weighing 50kg or less - YRls 5 per parcel a week free zones managed by or less than a week the Customs Authority. - Parcel weighing more than 50kg - YRls 10 per tonne or part of tonne a week or less than a week C. Fees of storing, porting, insuring - YRls 100 per parcel a the parcels placed on customs yards week or less than a week and free zone yards per tonne or less than a tonne ** The goods pointed out previously are exempted from fees of storing, porting and insuring for the first week of their arrival. ** These fees are doubled starting from the third week onward provided that the fees do not exceed half the value of the goods when they are released from customs.

D. Fees of wrapping, packing and sealing of parcels as follows: - Lead-sealing a parcel; - YRls 10 per parcel - Lead-sealing pallets; and - YRls 50 per pallet - Lead-sealing a car - YRls 200 per car

S/N HS Code Description Fee Purpose Legal Reference

14. Seaports (upon a request from the party Fees for overtime work - Customs Law WT/ACC/SPEC/YEM/5/Rev.5 concerned) No. 14/1990. - Loading or unloading goods - YRls 100 per tonne - Decision of the Minister onto/off ships outside working of Finance No. 342/1991 hours except for wheat regarding the - Clearing goods after 2:00 pm until - YRls 200 per hour/for determination of 6:00 pm each employee overtime value taken - Clearing goods after 6:00 pm until - YRls 250 per hour/for from the owners of 10:00 pm each employee goods. - Clearing goods after 10:00 pm until - YRls 300 per hour/for 8:00 am each employee - Goods sent out of the dock not - YRls 100 per truck within the working hours

Airports (clearing goods not within working hours upon the request of the party concerned): - 1-300 cartons - YRls 1,500 - 300-400 cartons - YRls 2,000 - 400 cartons or more - YRls 2,500 - Per special flight (charter) - YRls 5,000 - Per cleared common flight - YRls 2,500 (passengers + goods)

Land ports and transportation points (clearing goods not within working hours, upon the request of the party concerned): - Vehicles (trailers) - YRls 2,500 - Heavy trucks - YRls 2,000 - Big trucks - YRls 1,500 - Pick-up trucks - YRls 300 - Trucks loaded with goods of - YRls 100 Government tenders 15. Vehicles temporarily entering the 200 Saudi Arabian Riyals Service fees - Customs Law country belonging to non-residents (SRLS) or equivalent in foreign No. 14/1990.

currency and SRLS 100 for any - Decision of the Minister Page 109 further renewal of Finance No. 19/2000 pertaining to Amendment to Decision No. 92/1999 on Payment of Services Fees on Vehicles.

S/N HS Code Description Fee Purpose Legal Reference

16. Customs Declaration - YRls 2,000 - Fees for each damaged/lost - Customs Law Page 110 WT/ACC/SPEC/YEM/5/Rev.5 customs declaration No. 14/1990. - YRls 1,000 - Fees for each clarification - Decision of the Minister of a customs declaration of Finance No. 111/1996 on Payment of Services Fees for Obtaining customs documents for lost or damaged data (clarification of data for a customs declaration).

Table 11: Fees on Domestic and Imported Products WT/ACC/SPEC/YEM/5/Rev.5 No. HS Code Description Fees Purpose Legal Reference 1. 04.01- 04 - Milk YRls 1 per box or - A financial resource for the "Heritage and - Law No. (11) of 2002 on the Establishment 20.09 - Juices cartons Cultural Development Fund" which aims of Heritage and Cultural Development Fund. 22.01 - Water, soft drinks at, inter alia, contributing to the cultural development, documenting and maintaining heritage through many different programmes, projects and activities. 2. 24.02 - Cigarettes YRls 5 per 10 packs - A financial resource for the "Heritage and - Law No. (11) of 2002 on the Establishment Cultural Development Fund" which aims of Heritage and Cultural Development Fund. at, inter alia, contributing to the cultural development, documenting and maintaining heritage through many different programmes, projects and activities.

YRls 5 per pack - A financial resource to the "Youth Fund" - Law No. (36) of 1999 on the amendment of aiming at, inter alia, supporting sports of Article (11) of law (10) of 1996 regarding the the youth, programmes and activities and Establishment of Youth Fund. contributing to the construction of sports facilities.

YRls 5 per pack - A financial resource to the "Handicapped - Law No. (2) of 2002 on Handicapped Care and Rehabilitation Fund" which aims at, and Rehabilitation Fund. inter alia, funding programmes, projects and activities for rehabilitating and caring about the handicapped.

YRls 5 per 10 packs - Fees for cleaning and maintaining cities. - Cabinet Decision No. (167) of 1999 on the specification of cleaning fees and improvements stated in Article (11) of Law No. (20) of 1999 regarding the establishment City Improvement and Cleaning Fund. Page 111

No. HS Code Description Fees Purpose Legal Reference

3 25.23 - Cement YRls 1 for each - A financial resource to the "Heritage and - Law No. (11) of 2002 on the Establishment Page 112 WT/ACC/SPEC/YEM/5/Rev.5 cement bag Cultural Development Fund" which aims of Heritage and Cultural Development Fund. at, inter alia, contributing to the cultural development, documenting and maintaining heritage through different programmes, projects and activities.

YRls 5 per cement bag - A financial resource to the "Youth Fund" - Law No. (36) of 1999 on the amendment of of 50kg aiming at, inter alia, supporting sports for Article (11) of Law No. (10) of 1996 the young, programmes and activities and regarding the Establishment of Youth Fund. contributing to the construction of sports facilities.

YRls 10 per cement - Fees for Cleaning and Maintaining cities. - Cabinet Decision No. (167) of 1999 on the bag (50kg) specification of cleaning fees and improvements stated in Article (11) of Law No. (20) of 1999 regarding the Establishment City Improvement and Cleaning Fund. 4 - Parcels or cartons YRls 5 per parcel or - Fees for cleaning and maintaining cities. - Cabinet Decision No. (167) of 1999 on the cartons specification of cleaning fees and (Note that collection of improvements stated in Article (11) of Law fees on imports takes No. (20) of 1999 regarding the Establishment place at the time of City Improvement and Cleaning Fund. issuing a letter of credit) 5 10.01 - Basic food YRls 5 per bag - Fees for cleaning and maintaining cities. - Cabinet Decision No. (167) of 1999 on the 10.06 commodities specification of cleaning fees and 11.01 improvements stated in Article (11) of Law No. (20) of 1999 regarding the Establishment City Improvement and Cleaning Fund.

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Table 12: Import Prohibitions

List A - Prohibited Products Justified under Articles XX and XXI of the GATT 1994

Reason of WTO No. HS Code Description Prohibition Justification 1. 01031000 - Pure- Bred breeding animals Religious Article XX 2. 01039100 -- Weighing less than 50 kg Religious Article XX 3. 01039200 -- Weighing 50 kg or more Religious Article XX 4. 02031100 -- Carcasses and half-Carcasses Religious Article XX 5. 02031200 -- Hams, shoulders and cuts thereof, with bone in Religious Article XX 6. 02031900 -- Other Religious Article XX 7. 02032100 -- Carcasses and half-carcasses Religious Article XX 8. 02032200 -- Hams, shoulders and cuts thereof, with bone in Religious Article XX 9. 02032900 -- Other Religious Article XX 10. 02063000 - Of swine, fresh or chilled Religious Article XX 11. 02064100 -- Livers Religious Article XX 12. 02064900 -- Other Religious Article XX 13. 02090010 --- Of pig Religious Article XX 14. 02101100 -- Hams, shoulders and cuts thereof, with bone in Religious Article XX 15. 02101200 -- Bellies (streaky) and cuts thereof Religious Article XX 16. 02101900 -- Other Religious Article XX 17. 02109920 --- of meat and meat offal of swine Religious Article XX 18. 05021000 - Pigs', hogs' or boars' bristles and hair and waste Religious Article XX thereof 19. 12079100 -- Poppy Seeds Religious/health Article XX 20. 15010010 --- of pig Religious Article XX 21. 15030010 --- of pig Religious Article XX 22. 15171010 --- Imitation pig fats containing pig fats Religious Article XX 23. 15179010 --- Imitation pig fats containing pig fats and other Religious Article XX prepared alimentary fats 24. 16010010 --- Sausages and products, preparations of this Religious Article XX heading made of pig 25. 16010020 ----alimentary items made of blood Religious Article XX 26. 16021010 --- of meat and meat offal of pig Religious Article XX 27. 16021020 --- preparations of blood Religious Article XX 28. 16022010 --- of pig Religious Article XX 29. 16024100 -- Hams and cuts thereof Religious Article XX 30. 16024200 -- Shoulders and cuts thereof Religious Article XX 31. 16024900 -- Other, including mixtures Religious Article XX 32. 16029010 ---preparations of pig blood Religious Article XX 33. 16029020 ---preparations of blood Religious Article XX 34. 16030020 ---of pigs Religious Article XX 35. 17041010 --- Chewing gum, whether or not sugar-coated Religious Article XX containing alcohol 36. 17049020 --- Confectionary containing alcohol Religious Article XX 37. 18062010 --- Other preparations in blocks, slabs or bars Religious Article XX weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg containing alcohol 38. 18063110 --- containing alcohol Religious Article XX 39. 18063210 --- containing alcohol Religious Article XX 40. 18069010 ---Chocolate containing alcohol Religious Article XX 41. 19022010 --- Macaroni stuffed with pig meat or meat offal Religious Article XX 42. 19059020 ----alimentary items made of blood Religious Article XX

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Reason of WTO No. HS Code Description Prohibition Justification 43. 20081110 ---prepared or preserved by alcoholic Religious Article XX 44. 20081991 ---- prepared or preserved by alcoholic Religious Article XX 45. 20082010 --- prepared or preserved by alcoholic Religious Article XX 46. 20083010 --- prepared or preserved by alcoholic Religious Article XX 47. 20084010 --- prepared or preserved by alcoholic Religious Article XX 48. 20085010 --- prepared or preserved by alcoholic Religious Article XX 49. 20086010 --- prepared or preserved by alcoholic Religious Article XX 50. 20087010 --- prepared or preserved by alcoholic Religious Article XX 51. 20088010 --- prepared or preserved by alcoholic Religious Article XX 52. 20089110 --- prepared or preserved by alcoholic Religious Article XX 53. 20089210 --- prepared or preserved by alcoholic Religious Article XX 54. 20089910 --- prepared or preserved by alcoholic Religious Article XX 55. 21041011 ---- Of pig meat, bowls and meat offal Religious Article XX 56. 21041013 ----Soups and broths containing blood Religious Article XX 57. 21041021 ---- Of pig meat, bowls and meat offal Religious Article XX 58. 21041023 ---- Soup and broth preparations of Animal blood Religious Article XX 59. 21042010 --- Of pig meat, bowls and meat offal Religious Article XX 60. 22030000 Beer made from malt Religious Article XX 61. 22041000 - Sparkling wine Religious Article XX 62. 22042100 -- In containers holding 2 litres or less Religious Article XX 63. 22042900 -- Other Religious Article XX 64. 22043000 - Other Grape must Religious Article XX 65. 22051000 - In containers holding 2 litres or less Religious Article XX 66. 22059000 - Other Religious Article XX 67. 22060000 Other fermented beverages (for example, cider, Religious Article XX perry, mead); mixtures of fermented beverages and mixtures of fermented beverages and non-Alcoholic beverages, not elsewhere specified or included 68. 22071090 --- Other Religious Article XX 69. 22072090 --- Other Religious Article XX 70. 22082000 - spirits obtained by distilling grape wine or grape Religious Article XX marc 71. 22083000 - Whiskies Religious Article XX 72. 22084000 - Rum and tafia Religious Article XX 73. 22085000 - Gin and Geneva Religious Article XX 74. 22086000 - Vodka Religious Article XX 75. 22087000 - Liqueurs and cordials Religious Article XX 76. 22089000 - Other Religious Article XX 77. 23070010 --- wine lees Religious Article XX 78. ex 284440 Cloramphenicol and its compounds health Article XX ex 294140 ex 300390 ex 300490 79. ex 293219 Nitrofuran Group health Article XX ex 300390 ex 300490 80. 40122000 - used pneumatic tyres Environmental Article XX 81. 41033000 - of swine Religious Article XX 82. 41063100 -- In the wet state (including wet- Blue) Religious Article XX 83. 41063200 -- in the dry state (crust) Religious Article XX 84. 41132000 - of swine Religious Article XX 85. 56081110 --- Fishing nets with holes less than 20mm Environmental Article XX 86. 70071110 --- vehicles shady glass Security Article XXI 87. 70071910 --- vehicles shady glass Security Article XXI

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Reason of WTO No. HS Code Description Prohibition Justification 88. 70072110 --- vehicles shady glass Security Article XXI 89. 70072910 --- vehicles shady glass Security Article XXI 90. 84082010 --- Second Hand Diesel Engines for Passenger Environmental Article XX Vehicles 91. ex 851830 Listening devices Security Article XXI 92. ex 854390 Decoders Security Article XXI 93. ex 8701 The following items in chapter 87 are prohibited: Security and Article XXI ex 8702 - Vehicles manufactured 8 years ago including the Safety ex 8703 year of manufacture. ex 8704 - Right-steering wheel vehicles. ex 8705 - Vehicles with shifted wheels and technically unfit. - Vehicles with tinted glass even if it is tinted by manufacturing except for vehicles entering the country temporarily for visit purpose. 94. More than 15 years old machines (+ the year of Environmental Article XX manufacture) 95. ex 900691 Cameras that show the human body naked Religious Article XX 96. 95049091 ---- Gambling tables, machines and tools Religious Article XX

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List B - Pesticides

No. Common Name CAS No. Formula Type of Pesticide 1. 2,4,5-T and its salts 93-76-5 C8H5Cl3O3 Herbicide 2. 1,3-dichloropropene 542-75-6 C3H4Cl2 Fumigant and Nematicide 3. Acetochlor 34256-82-1 C14H20ClNO2 Herbicide 4. Acifluorfen 62476-59-9 C14H6ClF3NNaO5 Herbicide 5. Acrolein 107-02-8 C3H4O Algicide 6. Acrylonitrile 107-13-1 C3H3N Fumigant and Insecticide 7. Alachlor 15972-60-8 C14H20ClNO2 Herbicide 8. Aldicarb 116-06-3 C7H14N2O2S Insecticide 9. Aldoxycarb 1646-88-4 C7H14N2O4S Insecticide and Nematicide 10. Aldrin (HHDN) 309-00-2 C12H8Cl6 Insecticide 11. Allyl alcohol 107-18-6 C3H6O Herbicide 12. Aminocarb 2032-59-9 C11H16N2O2 Insecticide 13. Amitrole 61-82-5 C2H4N4 Herbicide 14. Aramite 140-57-8 C15H23ClO4S Acaricide 15. Arsenic (acid, pentoxide 12002-03-8, 75-60-5, 1327- Fungicide and arsenate, sodium) 53-3, 7778-39-4, 7778-44-1 and 7784-40-9 16. Arsenous oxide 1327-53-3 As4O6 Rodenticide 17. Azinphos- ethyl 2642-71-9 C12H16N3O3PS2 Insecticide 18. Azinphos methyl 86-50-0 C10H12N3O3PS2 Insecticide 19. Azobenzene 103-33-3 C12H10N2 Acaricide 20. Bendiocarb 22781-23-3 C11H13NO4 Insecticide 21. Benfuracarb 82560-54-1 C20H30N2O5S Insecticide 22. Benomyl 17804-35-2 C14H18N4O3 Fungicide 23. Bifenthrinm 82657-04-3 (Cis) C23H22ClF3O2 Insecticide and 83322-02-5 (Trans) Acaricide 24. Binapacryl 485-31-4 C15H18N2O6 Acaricide and Fungicide 25. Blasticidin-S 2079-00-7 C17H26N8O5 Fungicide 26. Bronopol 52-51-7 C3H6BrNO4 Bactericide 27. Butoxycarboxim 34681-23-7 C7H14N2O4S Insecticide and Acaricide 28. Butylate butachlor 23184-66-9 C11H23NOS Herbicide 29. Cadmium and its 12001-20-6 and 7784-40-9 - Insecticide compounds 30. Calcium arsenate 7778-44-1 As2Ca3O8 Insecticide 31. Calcium cyanide 592-01-8 and 74-90-8 C2CaN2 Insecticide and Fumigation 32. Captafol (Difolatan) 2425-06-1; 2939-80-2 C10H9Cl4NO2S Fungicide 33. Captan 133-06-2 C9H8Cl3NO2S Fungicide 34. Carbaryl 63-25-2 C12H11NO2 Insecticide 35. Carbofuran 1563-66-2 C12H15NO3 Insecticide, Acaricide and Nematicide 36. Carbon tetrachloride 56-23-5 CCl4 Fumigation and Insecticide 37. Carbophenothion 786-19-6 C11H16ClO2PS3 Insecticide 38. Carbosulfan 55285-14-8 C20H32N2O3S Insecticide 39. Chinomethionat 02/01/2439 C10H6N2OS2 Acaricide and Fungicide

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No. Common Name CAS No. Formula Type of Pesticide 40. Chlordane 57-74-9 C10H6Cl8 Insecticide 41. Chlordecone 143-50-0 C10Cl10O Insecticide

42. Chlordimeform 6164-98-3 C10H10ClN2 Acaricide 43. Chlorethoxyfos 54593-83-8 C6H11Cl4O3PS Insecticide 44. Chlorfenvinphos 470-90-6 C12H14Cl3O4P Insecticide 45. Chlormephos 24934-91-6 C5H12ClO2PS2 Insecticide 46. Chlorobenzilate 510-15-6 C16H14Cl2O3 Acaricide 47. Chlorophacinone 3691-35-8 C23H15ClO3 Rodenticide 48. Chlorothalonil 1897-45-6 C8Cl4N2 Fungicide 49. Chlorthiophos 60238-56-4 C11H15Cl2O3PS2 Insecticide 50. Chromium VI compounds Insecticide and Fungicide 51. Cloethocarb 51487-69-5 C11H14ClNO4 Insecticide and Nematicide 52. Coumaphos 56-72-4 C14H16ClO5PS Insecticide 53. Crotoxyphos 7700-17-6 C14H19O6P Insecticide 54. Cyanazine 21725-46-2 C9H13ClN6 Herbicide 55. Cyanophos 2636-26-2 C9H10NO3PS Insecticide 56. Cycloheximide 66-81-9 C15H23NO4 Fungicide 57. Cyhexatin 13121-70-5 C18H34OSn Acaricide 58. Cypermethrin beta- 52315-07-8 C22H19Cl2NO3 Insecticide Cypermethrin 65731-84-2 59. alpha and theta - 71697-59-1 C22H19Cl2NO3 Insecticide Cypermethrin 67375-30-8 60. zeta-cypermethrin 52315-07-8 C22H19Cl2NO3 Insecticide 61. Cyproconazole 94361-06-5 C15H18ClN3O Fungicide 62. Daminozide 1596-84-5 C6H12N2O3 Plant Growth Regulator 63. DDT and metabolite 50-29-3 C14H9Cl5 Insecticide 64. Demephion 682-80-4 C5H13O3PS2 Insecticide 65. Demephion-O and -S 2587-90-8 8065-62-1 C5H13O3PS2 Insecticide and Acaricide 66. Demetonne 8000-97-3 C8H19O3PS2 Insecticide and Herbicide 67. Demetonne-O and -S 298-03-3 126-75-0 C8H19O3PS2 Insecticide and Acaricide 68. Dibromochloro-propane 96-12-8 C3H5Br2Cl Herbicide (DBCP) 69. Dichlorovos (DDVP) 62-737 C4H7Cl2O4P Insecticide 70. Dicofol 115-32-2 C14H9Cl5O Acaricide 71. Dicrotophos 141-66-2 C8H16NO5P Insecticide 72. Dieldrin 60-57-1 C12H8Cl6O Insecticide 73. Dimefox 115-26-4 C4H12FN2OP Insecticide and Acaricide 74. Dimethoate 60-51-5 C5H12NO3PS2 Insecticide 75. Dimetilan 644-64-4 C10H16N4O3 Insecticide 76. Dimetonne-S-methyl 919-86-8 C6H15O3PS2 Insecticide 77. Dimetonne-S- 17040-19-6 C6H15O5PS2 Insecticide methylsulphon 78. Dinoseb and its salts 88-85-7 C10H12N2O5 Herbicide 79. Dinoterb acetate 3204-27-1 C12H14N2O6 Herbicide 80. Dioxathion 78-34-2 C12H26O6P2S4 Herbicide 81. Disulfotonne 298-04-4 C8H19O2PS3 Insecticide and Acaricide

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No. Common Name CAS No. Formula Type of Pesticide 82. DNOC and its salts 534-52-1 C7H6N2O5 Insecticide 83. Edifenphos (EDDP) 17109-49-8 C14H15O2PS2 Fungicide 84. Endosulfan 115-29-7 C9H6Cl6O3S Insecticide 85. Endrin 72-20-8 C12H8Cl6O Insecticide 86. EPN 2104-64-5 C14H14NO4PS Insecticide 87. Epoxiconazole 106325-08-0 C17H13ClFN3O Fungicide 88. Ethiofencarb 29973-13-5 C11H15NO2S Insecticide 89. Ethylene dibromide 106-93-4 C2H4Br2 Fumigationand Herbicide 90. Ethylene dichloride 107-06-2 C2H4Cl2 Fumigation and Insecticide 91. Ethylene oxide 75-21-8 C2H4O Fumigation 92. Etrimfos 38260-54-7 C10H17N2O4PS Insecticide 93. Fenamiphos 22224-92-6 C13H22NO3PS Nematicide and Insecticide 94. Fenthion (MPP) 55-38-9 C10H15O3PS2 Insecticide 95. Fensulfothion 115-90-2 C11H17O4PS2 Nematicide and Insecticide 96. Fenitrothion 122-14-5 C9H12NO5PS Insecticide 97. Fensulfothion 115-90-2 C11H17O4PS2 Nematicide and Insecticide 98. Flucythrinate 70124-77-5 C26H23F2NO4 Insecticide 99. Fluometuron 2164-17-2 C10H11F3N2O Herbicide 100. Fluoroacetamide 640-19-7 C2H4FNO Rodenticide and Insecticide 101. Fluvalinate 69409-94-5 C26H22ClF3N2O3 Insecticide Tau-fluvalinate 102851-06-9 102. Folpet 133-07-3 C9H4Cl3NO2S Fungicide 103. Fonofos 944-22-9 C10H15OPS2 Insecticide 104. Formaldehyde 50-00-0 CH2O Fumigation , Fungicide and Acaricide 105. Formetanate 2259-30-9 C11H15N3O2 Acaricide 106. Fosetyl-Al 39148-24-8 C6H18AlO9P3 Fungicide 9148-2408 107. Fosmethilan 83733-82-8 C13H19ClNO3PS2 Insecticide 108. Furathiocarb 65907-30-4 C18H26N2O5S Insecticide 109. Furmecyclox 60568-05-0 C14H21NO3 Fungicide 110. Haloxyfop-P 72619-32-0 C16H13ClF3NO4 Herbicide 111. Heptachlor epoxide 76-44-8 C10H5Cl7 Insecticide 112. Heptenophos 23560-59-0 C9H12ClO4P Insecticide 113. Hexachlorobenzene 118-74-1 C6Cl6 Fungicide and Insecticide 114. Hexachlorobutadiene 87-68-3 C4Cl6 Fungicide 115. Hexaconazole 79983-71-4 C14H17Cl2N3O Fungicide 116. Isazofos 42509-80-8 C9H17ClN3O3PS Insecticide and Nematicide 117. Isofenphos 25311-71-1 C15H24NO4PS Insecticide 118. Isoprocarb 2631-40-5 C11H15NO2 Insecticide 119. Isothioate 36614-38-7 C7H17O2PS3 Insecticide 120. Isoxathion 18854-01-8 C13H16NO4PS Insecticide 121. Lactofen 77501-63-4 C19H15ClF3NO7 Fungicide 122. Lead arsenate 7784-40-9 AsHO4Pb Insecticide 123. Leptophos 21609-90-5 C13H10BrCl2O2PS Insecticide

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No. Common Name CAS No. Formula Type of Pesticide 124. Lindane, BHC, Beta and 58-89-9, 319-85-7,319-84-6 C6H6Cl6 Insecticide and alpha BHC and HCH and 608-73-1 Rodenticide 125. Malathion 121-75-5 C10H19O6PS2 Insecticide 126. Maneb 12427-38-2 C4H6MnN2S4 Fungicide 127. Mercury and mercury 7439-97-67 Fungicide compounds: - Mercuric oxide 487-94-7 (mercury oxide) - Mercurous chloride 21908-53-2 (calomel) - Other inorganic 7564-30-7 mercury compounds - Alkyl mercury 7784-40 compounds - Alkoxyalkyl and aryl 7487-94-7 mercury compounds 128. Metam sodium and its 137-42-8 C2H4NNaS2 Fungicide dihydrate 6734-80-1 (Vapam) 129. Methamidophos 10265-92-6 C2H8NO2PS Insecticide 130. Methidathion 950-37-8 C6H11N2O4PS3 Insecticide 131. Methiocarb 2032-65-7 C11H15NO2S Insecticide 132. Methomyl 16752-77-5 C5H10N2O2S Insecticide 133. Methoxychlor 72-43-5 C16H15Cl3O2 Insecticide 134. Methyl parathion 298-00-0 C8H10NO5PS Insecticide 135. Methyl bromide 74-83-9 CH3Br Fumigation and Insecticide 136. Methyl isothiocyanate 556-61-6 C2H3NS Insecticide 137. Mevinphos 26718-65-0 C7H13O6P Insecticide 138. Mirex 2385-85-5 C10Cl12 Insecticide 139. Monocrotophos 6923-22-4 C7H14NO5P Insecticide 140. Naled 300-76-5 C4H7Br2Cl2O4P Insecticide 141. Nicotine 54-11-5 C10H14N2 Insecticide 142. Nitrofen 1836-75-5 C12H7Cl2NO3 Herbicide 143. Omethoate 1113-02-6 C5H12NO4PS Insecticide 144. Orthophenylphenol and Na 90-43-7 C12H10O Fungicide salt 132-27-4 C12H9NaO 145. Oxamyl (Thioxamyl) 23135-22-0 C7H13N3O3S Insecticide and Nematicide 146. Oxydemetonne-methyl 301-12-2 C6H15O4PS2 Insecticide 147. Oxydeprofos (ESP) 2674-91-1 C7H17O4PS2 Insecticide 148. Paraquat 4685-14-7 C12H14N2 Herbicide 149. Parathion 56-38-2 C10H14NO5PS Insecticide (Thiophos) 150. Paris green 12002-03-8 C4H6As6Cu4O16 Insecticide 151. Pentachlorophenol 87-86-5 C6HCl5O Insecticide and Fungicide 152. Phenthoate 07/03/2597 C12H17O4PS2 Insecticide 153. Phenylmercury acetate 62-38-4 C8H8HgO2 Fungicide 154. Phenylmercury nitrate 02/05/8003 C12H11Hg2NO4 Fungicide 155. Phorate (Timet) 298-02-2 C7H17O2PS3 Insecticide and Acaricide 156. Phosalone 2310-17-0 C12H15ClNO4PS2 Insecticide 157. Phosfolan 950-10-7 C8H16NO3PS2 Insecticide 158. Phosphamidon 13171-21-6 C10H19ClNO5P Insecticide

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No. Common Name CAS No. Formula Type of Pesticide 159. Phoxim 14816-18-3 C12H15N2O3PS Insecticide 160. Phoxim-methyl 14816-16-1 C10H11N2O3PS Insecticide 161. Pirimicarb 23103-98-2 C11H18N4O2 Insecticide 162. Pirimiphos- ethyl l23505-41-1 C13H24N3O3PS Insecticide 163. Polychloroterpenes 8001-50-1 C10H11Cl7 Insecticide and Acaricide 164. Procymidone 2809-16-8 C13H11Cl2NO2 Insecticide and Acaricide 165. Pronamid(Propyzamide) 23950-58-5 C12H11Cl2NO Herbicide 166. Propaphos 7292-16-2 C13H21O4PS Insecticide 167. Propargite 2312-35-8 C19H26O4S Herbicide 168. Propetamphos 31218-83-4 C10H20NO4PS Insecticide 169. Propoxur 114-26-1 C11H15NO3 Insecticide 170. Prothoate 2275-18-5 C9H20NO3PS2 Insecticide 171. Scilliroside 507-60-8 C32H44O12 Rodenticide 172. Sodium arsenite 7784-46-5 AsNaO2 Insecticide and Herbicide 173. Sodium cyanide 143-33-9 CNNa Insecticide and Fumigation 174. Sodium fluoroacetate 62-74-8 C2H2FNaO2 Rodenticide 175. Sulfallate 95-06-7 C8H14ClNS2 Herbicide 176. Sulfotep 3689-24-5 C8H20O5P2S2 Insecticide 177. Sulprofos 35400-43-2 C12H19O2PS3 Insecticide 178. Tebupirimfos 96182-53-5 C13H23N2O3PS Insecticide 179. Tefluthrin 79538-32-2 C17H14ClF7O2 Insecticide 180. TEPP 107-49-3 C8H20O7P2 Acaricide 181. Terbufos 13071-79-9 C9H21O2PS3 Insecticide and Nematicide 182. Terrazole (Etridiazole) 2593-15-9 C5H5Cl3N2OS Fungicide 183. Thiodicarb 59669-26-0 C10H18N4O4S3 Insecticide 184. Thiofanox 39196-18-4 C9H18N2O2S Insecticide 185. Thiometonne 640-15-3 C6H15O2PS3 Insecticide and Acaricide 186. Thionazin 297-97-2 C8H13N2O3PS Insecticide and Nematicide 187. Thiram 137-26-8 C6H12N2S4 Fungicide 188. Toxaphene (Camphechlor) 8001-35-2 C10H10Cl8 Insecticide 189. Triamiphos 1031-47-6 C12H19N6OP Acaricide, Nematicide and Insecticide 190. Triazophos 24017-47-8 C12H16N3O3PS Insecticide 191. Trichlorfon 52-68-6 C4H8Cl3O4P Insecticide 192. Trichloronate 327-98-0 C10H12Cl3O2PS Insecticide 193. Trimethacarb 12407-86-2 C11H15NO2 Insecticide 194. Triphenyltin hydroxide 76-87-9 C18H16OSn Fungicide 195. Vamidothion 2275-23-2 C8H18NO4PS2 Insecticide

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List C(1) - Ozone-Depleting Substances

HS Chemical Code Chemical No. CAS number Chemical Name Heading Name Short Formula 1. 29.03 * CHFBr2 Fluorodibromomethane 2. ~ 1511-62-2 HBFC-22B1 CHF2Br Difluorobromomethane 3. ~ * CH2FBr Fluorobromomethane 4. ~ * C2HFBr4 Fluorotetrabromoethane 5. ~ * C2HF2Br3 Difluorotribromoethane 6. ~ * C2HF3Br2 Trifluorodibromoethane 7. ~ 124-72-1 * C2HF4Br Tetrafluorobromoethane 8. ~ * C2H2FBr3 Fluorotribromoethane 9. ~ 75-82-31392-1- * C2H2F2Br2 Difluorodibromoethane 968 10. ~ 421-06-7 * C2H2F3Br Trifluorobromoethane 11. ~ 958-97-4 * C2H3FBr2 Fluorodibromoethane 12. ~ * C2H3F2Br Difluorobromoethane 13. ~ 762-49-2 * C2H4FBr Fluorobromoethane 14. ~ 29470-94-8, * C3HFBr6 Fluorohexabromopropane 134273-35-7 15. ~ * C3HF2Br5 Difluoropentabromopropane 16. ~ * C3HF3Br4 Trifluorotetrabromopropane 17. ~ * C3HF4Br3 Tetrafluorotribromopropane 18. ~ * C3HF5Br2 Pentafluorodibromopropane 19. ~ 63905-11-3 * C3HF6Br Hexafluorobromopropane 20. ~ * C3H2FBr5 Fluoropentabromopropane 21. ~ * C3H2F2Br4 Difluorotetrabromopropane 22. ~ * C3H2F3Br3 Trifluorotribromopropane 23. ~ * C3H2F4Br2 Tetrafluorodibromopropane 24. ~ 422-01-5 * C3H2F5Br Pentafluorobromopropane 25. ~ * C3H3FBr4 Fluorotetrabromopropane 26. ~ * C3H3F2Br3 Difluorotribromopropane 27. ~ 431-21-0 * C3H3F3Br2 Trifluorodibromopropane 28. ~ 679-84-5 * C3H3F4Br Tetrafluorobromopropane 29. ~ * C3H4FBr3 Fluorotribromopropane 30. ~ * C3H4F2Br2 Difluorodibromopropane 31. C3H4F3Br Trifluorobromopropane 32. ~ * C3H5FBr2 Fluorodibromopropane 33. ~ * C3H5F2Br Difluorobromopropane 34. ~ 352-91-0 * C3H6FBr Fluorobromopropane 35. CH2BrCl BromochloroMethane

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List C(2) - Systems, Units, Equipment and Products Using or Containing any of the Controlled Substances Under the Montreal Protocol Stated in Annex 1 Below

1. Automobile and truck air conditioning units (whether incorporated in vehicles or not) 2. Refrigerators 3. Freezers 4. Dehumidifiers 5. Water coolers 6. Ice machines 7. Air-conditioning and heat pump units 8. Aerosol products except the medical aerosol 9. Portable fire extinguisher 10. Insulation boards, panels and pipe covers 11. Pre-Polymers 12. Compressors as spare parts for equipment listed from 1-7 above

Annex 1 Substances Subject to Prohibition in Imported Equipment, Tools and Products

No. Chemical Name Chemical Short Formula Chemical Code Name 1. Fluorotrichloromethane CFCl3 CFC-11 2. Diflorodichloromethane CF2Cl2 CFC-12 3. Trichlorotrifluoroethane C2F3Cl3 CFC-113 4. Dichlorotetrafluoroethane C2F4Cl2 CFC-114 5. Chloropentafluoroethane C2F5Cl CFC-115 6. Bromochlorodifluoromethane CF2BrCl Halon-1211 7. Bromotrifluoromethane CF3Br Halon-1301 8. Dibromotetrafluoroethane C2F4Br2 Halon-2402 9. Trifluorochloromethane CF3Cl CFC-13 10. Fluoropentachloroethane C2FCl5 CFC-111 11. Difluorotetrachloroethane C2F2Cl4 CFC-112 12. Fluoroheptachloropropane C3FCl7 CFC-211 13. Difluorohexachloropropane C3F2Cl6 CFC-212 14. Trifluoropentachloropropane C3F3Cl5 CFC-213 15. Tetrafluorotetrachloropropane C3F4Cl4 CFC-214 16. Pentafluorotrichloropropane C3F5Cl3 CFC-215 17. Hexafluorodichloropropane C3F6Cl2 CFC-216 18. Heptafluorochloropropane C3F7Cl CFC-217 19. Carbontetracchloride CCI4 CTC I.I.I trichloroethane (Methyle 20. C H CI CTA Chloroform) 2 3 3 21. 500-R CFC-12/HFC-152a R-500 22. 502-R HCFC-22/CFC151 R-502 Note: Diplomats and passengers' personal luggage are excluded.

WT/ACC/SPEC/YEM/5/Rev.5 Page 123

List D - Wastes According to Basel Convention

Waste Streams 1. Y1 Clinical wastes from medical care in hospitals, medical centers and clinics 2. Y2 Wastes from the production and preparation of pharmaceutical products 3. Y3 Waste pharmaceuticals, drugs and medicines 4. Y4 Wastes from the production, formulation and use of biocides and phytopharmaceuticals 5. Y5 Wastes from the manufacture, formulation and use of wood 6. Y6 Wastes from the production, formulation and use of organic 7. Y7 Wastes from heat treatment and tempering operations containing cyanides 8. Y8 Waste mineral oils unfit for their originally intended use preserving chemicals 9. Y9 Waste oils/water, hydrocarbons/water mixtures, emulsions 10. Y10 Waste substances and Articles containing or contaminated solvents polychlorinated terphenyls (PCTs) and/or polybrominated biphenyls (PBBs) 11. Y11 Waste tarry residues arising from refining, distillation and any pyrolytic treatment 12. Y12 Wastes from production, formulation and use of inks, dyes, pigments, paints, lacquers, varnish 13. Y13 Wastes from production, formulation and use of resins, latex, plasticizers, glues/adhesives 14. Y14 Waste chemical substances arising from research and development or teaching activities which are not identified and/or are new and whose effects on man and/or the environment are not known 15. Y15 Wastes of an explosive nature not subject to other legislation 16. Y16 Wastes from production, formulation and use of photographic chemicals and processing materials 17. Y17 Wastes resulting from surface treatment of metals and plastics 18. Y18 Residues arising from industrial waste disposal operations Wastes having as constituents 1. Y19 Metal carbonyls 2. Y20 Beryllium; beryllium compounds 3. Y21 Hexavalent chromium compounds 4. Y22 Copper compounds 5. Y23 Zinc compounds 6. Y24 Arsenic; arsenic compounds 7. Y25 Selenium; selenium compounds 8. Y26 Cadmium; cadmium compounds 9. Y27 Antimony; antimony compounds 10. Y28 Tellurium; tellurium compounds 11. Y29 Mercury; mercury compounds 12. Y30 Thallium; thallium compounds 13. Y31 Lead; lead compounds 14. Y32 Inorganic fluorine compounds excluding calcium fluoride 15. Y33 Inorganic cyanides 16. Y34 Acidic solutions or acids in solid form 17. Y35 Basic solutions or bases in solid form 18. Y36 Asbestos (dust and fibres) 19. Y37 Organic phosphorus compounds 20. Y38 Organic cyanides 21. Y39 Phenols; phenol compounds including chlorophenols 22. Y40 Ethers 23. Y41 Halogenated organic solvents 23. Y42 Organic solvents excluding halogenated solvents 24. Y43 Any congenor of polychlorinated dibenzo-furan 25. Y44 Any congenor of polychlorinated dibenzo-p-dioxin 26. Y45 Organohalogen compounds other than substances referred to in this Annex (e.g. Y39, Y41, Y42, Y43, Y44) 27. Y46 Wastes collected from households 28. Y47 Residues arising from the incineration of household wastes

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List E - Persistent Organic Pollutants According to Stockholm Convention

No. Name of Chemical CAS.NO 1. Aldrin 309-00-2 2. Chlordan 57-74-9 3. Dieldrin 60-57-1 4. Endrin 72-20-8 5. Hexachlorobenzene 118-74-1 6. Heptachlor 76-44-8 7. Mirex 2385-85-5 8. Toxaphene 8001-35-2 9. DDT (1,1,1-trichloro-2,2bis(p-chlorophényl) éthane) 50-29-3 10. Polychlorinated biphenyls 11. PCDD). POLYCHLORINAT)DIOXINSED DIBEZO -P -DIOXINS 12. PCDF). POLYCHLORINATED)FURAN DIBENZO-FURANS

Table 16: Fees and Charges for Services Rendered on Exports WT/ACC/SPEC/YEM/5/Rev.5 S/N HS Code Description Fee Purpose Legal Reference 1. Products covered in chapters - Tails of rocky lobster - YRls 49 per kg Fees for services of examining Decision of the Minister of 03.00 and 16.00 - Rocky lobster in full, frozen - YRls 20 per kg and controlling the quality of Fishery No. 58/2006 "On - Living lobster Yemen's fish products in order to Determination of Fees for the - Deep water lobster - YRls 39 per kg issue health certificate. Issue of Health Certificates per - Coastal shrimps - YRls 12 per kg Each Shipment of Fish and - Deep water shrimps - YRls 16 per kg Marine Organisms, Subject to the - Squid - YRls 4 per kg Law No. 2/2006 'On the - Fresh fish - YRls 5 per kg Regulation of Fishing, Utilizing - Frozen fish - YRls 4 per kg and Protecting Marine Life'". - Fillets of fresh and frozen - YRls 3 per kg fish - YRls 10 per kg - Fins of shark - Trepang - YRls 59 per kg - Harica and yareeka fish - YRls 59 per kg - Octopus - YRls 5 per kg - Crabs - YRls 5 per kg - Dried fish - YRls 3 per kg - Mince of fish - YRls 2 per kg - YRls 1 per kg 2. 38.08 Plant pesticides Two per thousand (2/1000) of the Fees for export permit. Law No. 25/1999 "On Regulation value of exportation of Plant Pesticides Circulation". 3. Animal wealth YRls 1,000 for each certificate Fees for the issue of veterinary Law No. 17/2004 "On Regulation certificate. and Protection of Animal Resources". 4. Goods subject to accredited YRls 1,000, providing that the Fees for the issuance of Decision of the Minister of standards product must be registered at the conformity certificate. Industry and Trade No. 2/2003 Yemeni Standardization, "On the Regulations of Metrology, and Quality Control Conformity Assessment of Goods Organization (YSMO), and the and Enterprises to Accredited enterprise making such Standards". production should have a certificate to practice good manufacturing Page 125

S/N HS Code Description Fee Purpose Legal Reference 5. Items included in Chapter 06.00 Plant Consignment - YRls 1,500 - Fees for issuing a plant - Law No.32/1999 "On health certificate for Plant Quarantine". Page 126 WT/ACC/SPEC/YEM/5/Rev.5 exported or re-exported - Ministerial Decree plant consignments. No. 29/2002 "On - YRls 3,000 - Lab examination costs for Determining the Fees to each type or variety of be Charged on Plant consignment of seeds, Consignments which tubers, bulbs, rhizomes Are Subject to the seedlings, corms. Provisions of the Law - YRls 3,000 - Lab examination costs for on Plant Quarantine and each type or variety of the Conditions for consignment of Exemption from such manufactured organic Fees". fertilizers or artificial soil. - YRls 50 - For each 20 seedlings or sucker. - YRls 100 - For each bunch of cuttings (not more than 50 cuttings). 6. Chapter 12 - Seeds - YRls 3,000 Lab examination fees. Decree by the Minister of Chapter 31 - Fertilizers - Determined according to the Agriculture No. 43/2005 "On cost of each element Fees for Services of Registration and Examination of Seeds and Agricultural Fertilizers".

Table 18: List of Groups of Products and the Relevant Conformity Assessment Systems Applied on them

WT/ACC/SPEC/YEM/5/Rev.5 No. Item HS Code Conformity Assessment Procedure Group (1): Toys 1. Bicycles and wagons 9501 The manufacturer keeps technical reports and files that proves the product conformity to standards or 2. Dolls 9502 technical regulations. The Certification Body performs inspection, type testing and surveillance on 3. Entertainment toys including 9503 production at random periods. puzzles and assembly toys 4. Toys in the form of animals or 9503.40, 9503.41 creatures 5. Other toys in the form of sets 9503.70 or groups 6. Toys with engine inside 9503.80 Group (2): Electrical and electronic products 1. Cables and electrical wires 8544, 8544.10, 8544.20 2. All types of conductors 8544.49.20, 8544.50, 8544.51, 544.51.10, 8544.40, 8544.41, 8544.41.20 3. Circuit breakers 8536, 8536.20 4. Electrical transformers 8504.21, 8504.22, 8504.31, 8504.32, 8504.33, 850.34 5. Receiving devices (television, 8528.00, 8528.11, The Certification Body performs inspection, type testing on the design and product, surveillance on radio and antenna, telephones, 8528.12, 8528.13, production at random periods, in addition to assessment of quality system that includes design and wireless phones and mobiles) 8527.00, 8527.10, surveillance on it. 8527.12, 8527.13, 8527.19, 8527.20, 8527.21, 8527.29, 8529.10, 8529.10.10 6. Fax and telex machines 8517.21, 8517.22 7. Household freezers 8418.40 The manufacturer keeps a technical file that proves the product conformity to standards and technical regulations. The Certification Body performs inspection, type testing and surveillance on production at random periods. 8. Photocopying machines 9009.11, 9009.12, 9009.21, 9009.22,

900.30 Page 127

No. Item HS Code Conformity Assessment Procedure

9. Lift and elevator systems 8428.10.10, 8431.31 The Certification Body performs inspection, type testing on the design and product at random periods, Page 128 WT/ACC/SPEC/YEM/5/Rev.5 assessment of the quality of the quality system that includes design and surveillance. 10. Personal computers 8471.41 The manufacturer keeps a technical file that proves the product conformity to standards or technical 11. Telephones, wireless phones 8517.10, 8517.11, regulations. The Certification Body performs inspection, type testing and surveillance on production at and mobiles 8517.19, 8517.50, random periods. 8525.20.10 12. Household microwave ovens 8516.50 13. Household vacuum cleaners 8509.10 and water suction appliances 14. TV Display sets (video) 8521.10, 8521.90 15. Household clothes drying 8451.21 machines 16. Air conditioners 8415.10 17. Electrical ovens including 8516.60, 8516.71, cooking surfaces, kettles, grills 8516.72 and toasters Group (3): Vehicles 1. Passenger automobiles, trucks 8701, 8702, 8703, The Certification Body performs inspection, type testing at random periods, assessment of quality system and buses (new) 8704, 8705 and surveillance on it. 2. Passenger automobiles, trucks 8701, 8702, 8703, 100% inspection. and buses (used) 8704, 8705 3. New tyres for passenger 4011.10, 4011.20 The Certification Body performs inspection, type testing at random periods, assessment of quality system automobiles, trucks and buses and surveillance on it. Group (4): Safety personal devices 1. Safety head helmets 6506.10 The Certification Body performs inspection, type testing and surveillance on production at random periods 2. Rubber and plastic safety shoes 6402, 6401 in addition to assessment of quality system relevant to production and surveillance on the quality system. 3. Eye protectors 9004 4. Ears protectors 6506.10 5. Nose and mouth masks 6506.10 6. Safety gloves 6216

No. Item HS Code Conformity Assessment Procedure

Group (5): Foodstuffs with its all types WT/ACC/SPEC/YEM/5/Rev.5 1. Frozen and fresh meats (beef, 2.01, 2.02, 2.03, 2.04, Product Conformity Certification Body will carry out the inspection for the batch pursuant to health and mutton, goat meat, chicken, 2.05, 2.05, 2.06, 2.07, veterinary measures and Yemeni technical regulations. fish and bowels) 2.08, 2.02, 3.03, 3.04, 3.07 Required Procedures by Inspection Body/Required Ratification: - That the exported country of free from animal epidemic diseases stipulated in the International Epidemics Office by-laws (a) and (b); - Regarding cow madness disease (for beef and its products), it will comply with the OIE Terrestrial Animal Health Code; - That butcheries where animals are slaughtered are licensed officially and subject to veterinary official supervision; - Regarding the use of hormones in bovine meat and its products, it should comply with the range specified by CODEX and the OIE; - That meats products were medically (veterinary) examined before or after slaughter; - That meats have been brought to Yemen in accordance with transporting and storing food items conditions; and - That fishing methods are in pursuant to international practices. 2. Meat products (canned meat, 2.10, 3.05, 3.06, 4.07, The manufacturer maintains technical reports and files that prove meat product are in conformity with the packed, smoked, salinity and 4.08, 4.10, 16.01, health measures and technical regulations. The Body will carry out testing, market surveillance, processed meats … etc.) eggs 16.02, 16.04, 16.05 production in accordance with health measures and Yemeni technical regulations or in accordance with the and its products international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses meats conforming with health measures applied in Yemen; and - That heath practices in items produced are in conformity with Yemeni technical regulations. 3. Milk and dairy products 4.01, 4.02, 4.03, 4.04, The manufacturer maintains technical reports and files that prove milk and dairy products are in 4.05, 4.06, 21.05 conformity with the health measures and technical regulations. The Body will carry out testing, market surveillance, production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case the unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That milk used in industry is imported from healthy cows and free from diseases, including cow madness disease; and - That the factory uses milk that is in conformity with health measures of Yemeni technical regulations. Page 129

No. Item HS Code Conformity Assessment Procedure

4. Frozen and fresh fruits and 7.01, 7.02, 7.03, 7.04, Product Conformity Certification Body will carry out batch inspection in accordance with plant health Page 130 WT/ACC/SPEC/YEM/5/Rev.5 vegetables 7.05, 7.06, 7.07, 7.08, measures and Yemeni technical regulations. 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 8.01, 8.02, Required Procedures by Inspection Body/Required Ratification: 8.03, 8.04, 8.05, 8.06, - That the exported country is free from harmful pests and insects to plants in accordance with plant 8.07, 8.08, 8.09, 8.10, health agreement; 8.11, 8.12 - That imported fruits and vegetables do not contain pesticides effects within the limits permitted in the lists issued by the Codex Alimentarius standards; - That fruits and vegetables are valid for human consumption; and - That transport is conforming with transporting and storing food items instructions. 5. Packed and canned plant and 20.01, 20.02, 20.03, The manufacturer maintains technical reports and files that prove canned vegetable products are in vegetable products 20.04, 20.05, 20.06, conformity with health measures and technical regulations. The Body will carry out the inspection for 20.08 testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses vegetables and fruit items that valid for human consumption and used in food industry; and - That manufacturing practices applied in the factory harmonized with Yemeni technical regulations. 6. Dry and dehydrated plant and 8.13, 8.14, 9.01, 9.01, Product Conformity Certification Body will carry out batch inspection in accordance with plant health vegetable products (vegetables, 9.02, 9.03, 9.04, 9.05, measures and Yemeni technical regulations. cereals, fruits and crackers) 9.06, 9.07, 9.08, 9.09, 9.10, 10.01, 10.02, Required Procedures by Inspection Body/Required Ratification: 10.03, 10.04, 10.05, - That the exported country is free from harmful pests and insects to plants in accordance with plant 10.06, 11.01, 11.02, health agreement; 11.03, 11.04, 11.05, - That the product does not contain pesticides effects within the limits permitted in the lists issued by 11.06, 11.07, 11.08, the Codex Alimentarius standards; 11.09, 12.01, 12.02, - That transport means are suitable for transporting food items; 12.03, 12.04, 12.05, - That the factory uses vegetables and fruit items that valid for human consumption and used in food 12.06, 12.07, 12.08, industry; and 12.10, 12.12, 17.01, - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations. 17.02

No. Item HS Code Conformity Assessment Procedure

7. Drinks and Juices 20.09, 21.01, 22.09 The manufacturer maintains technical reports and files that prove drinks and juices are in conformity with WT/ACC/SPEC/YEM/5/Rev.5 health measures and technical regulations. The Body will carry out the inspection for testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses raw materials usable for food items and conforming with Yemeni technical regulations; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; and - That transport of products is in conformity with the conditions of storing and transporting for the materials. 8. Sweets, candies and cocoa 4.09, 17.03, 17.04, The manufacturer maintains technical reports and files that prove candies, sweets and cocoa products are in products 18.01, 18.02, 18.03, conformity with health measures and technical regulations. The Body will carry out the inspection for 18.04, 18.06, 20.07 testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses raw materials usable for food industry and in conformity with Yemeni technical regulations; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; - That the products transport are in conformity with storing and transporting food items conditions; and - In case that the product contained milk items, it should be 9. Baking products (biscuits, 19.01, 19.02, 19.03, The manufacturer maintain technical reports and files that prove baked products (biscuits, cakes, frozen cakes, frozen paste and pasta) 19.04, 19.05, 21.02 pastes and pasta) are in conformity with health measures and technical regulations. The Body will carry out the inspection for testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses raw materials usable for food industry and in conformity with Yemeni technical regulations; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; - That the products transport are in conformity with storing and transporting food items conditions; and

- In case that the product contained milk items, it should be verified that milk is provided from free Page 131 diseases animals, which includes cow madness disease.

No. Item HS Code Conformity Assessment Procedure

10. Babies and infant foods 21.06 The manufacturer maintains technical reports and files that prove infants and baby food are in conformity Page 132 WT/ACC/SPEC/YEM/5/Rev.5 with health measures and technical regulations. The Body will carry out the inspection for testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That milk used in manufacturing is provided from healthy cows and free from diseases, including cow madness diseases; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; and - That the factory uses milk that is conforming with health conditions in accordance with Yemeni technical regulations. 11. Sauces and soups (fluid and 16.03, 21.03, 21.04 The manufacturer maintains technical reports and files that prove dry and fluid sauces and soups are in dry) conformity with health measures and technical regulations. The Body will carry out the inspection for testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses raw materials usable for food industry and in conformity with Yemeni technical regulations; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; - In case that the product contained milk items, it should be verified that milk is provided from free diseases animals, which includes cow madness disease; and - In case, containing the product milk items, it should be verified that milk is provided from free diseases cows, especially cow madness disease.

No. Item HS Code Conformity Assessment Procedure

12. Oils and its products 15.07, 15.08, 15.09, The manufacturer maintains technical reports and files that prove oils and oil products are in conformity WT/ACC/SPEC/YEM/5/Rev.5 15.10, 15.11, 15.12, with health measures and technical regulations. The Body will carry out the inspection for testing, market 15.13, 15.14, 15.15, surveillance and production in accordance with health measures and Yemeni technical regulations or in 15.16, 15.17, 15.18 accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses raw materials usable for food industry and in conformity with Yemeni technical regulations; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; - That the products transport are in conformity with storing and transporting food items conditions; and - That transport means for oils (D) are suitable for food items in accordance with health conditions.

13. Bottled water, mineral and 22.01, 22.02 The manufacturer maintains technical reports and files that prove bottled water, mineral and soda are in soda conformity with health measures and technical regulations. The Body will carry out the inspection for testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the factory uses raw materials usable for food industry and in conformity with Yemeni technical regulations; - That manufacturer practices applied in the factory harmonized with Yemeni technical regulations; and - That the products transport is in conformity with storing and transporting food items conditions. 14. Food additives The manufacturer maintains technical reports and files that prove food additives are in conformity with health measures and technical regulations. The Body will carry out the inspection for testing, market surveillance and production in accordance with health measures and Yemeni technical regulations or in accordance with the international standards in case unavailability of health measures or Yemeni technical regulations.

Required Procedures by Inspection Body/Required Ratification: - That the materials used in manufacturing food additives are valid for human consumption in

accordance with international Alimentarius commission; Page 133 - In case containing food additives an ingredients related to cow origin; and - If the product is related to meats.

No. Item HS Code Conformity Assessment Procedure

Group (6): Steel Bars for the 7208,7209,7210,7211, The manufacturer keeps a technical file that proves the product conformity to standards or technical Page 134 WT/ACC/SPEC/YEM/5/Rev.5 Re-enforcement of Concrete 7212, 7213, 7214,7215 regulations. The Certification Body performs inspection, type testing on the product at random periods, assessment of the quality system that includes design and surveillance. Group (7): Portable Steel Cylinders 7311 The manufacturer keeps a technical file that proves the product conformity to standards or technical for Liquefied Petroleum Gases regulations. The Certification Body performs inspection, type testing on the design and product at random (LPG) periods, assessment of the quality system that includes design and surveillance. Group (8): Timber 4407,4408,4409,4410, The manufacturer keeps a technical file that proves the product conformity to standards or technical 4411,4412,4418,4420, regulations. The Certification Body performs inspection, type testing on the design and product at random 4421 periods, assessment of the quality system that includes design and surveillance.

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[DRAFT DECISION

ACCESSION OF THE REPUBLIC OF YEMEN

Decision of […]

The [Ministerial Conference][General Council],

Having regard to paragraph 2 of Article XII and paragraph 1 of Article IX of the Marrakesh Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed by the General Council (WT/L/93),

[Conducting the functions of the Ministerial Conference in the interval between meetings pursuant to paragraph 2 of Article IV of the WTO Agreement,]

Taking note of the application of the Republic of Yemen for accession to the WTO Agreement dated 14 April 2000,

Noting the results of the negotiations directed toward the establishment of the terms of accession of the Republic of Yemen to the WTO Agreement and having prepared a Protocol on the Accession of the Republic of Yemen,

Decides as follows:

1. The Republic of Yemen may accede to the WTO Agreement on the terms and conditions set out in the Protocol annexed to this Decision.

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WT/ACC/SPEC/YEM/5/Rev.5 Page 136

DRAFT PROTOCOL

ON THE ACCESSION OF THE REPUBLIC OF YEMEN

Preamble

The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval of the [Ministerial Conference] [General Council] of the WTO accorded under Article XII of the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement"), and the Republic of Yemen,

Taking note of the Report of the Working Party on the Accession of the Republic of Yemen to the WTO Agreement reproduced in document WT/ACC/YEM/[…], dated [...] (hereinafter referred to as the "Working Party Report"),

Having regard to the results of the negotiations on the accession of the Republic of Yemen to the WTO Agreement,

Agree as follows:

PART I - GENERAL

1. Upon entry into force of this Protocol pursuant to paragraph 8, the Republic of Yemen accedes to the WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.

2. The WTO Agreement to which the Republic of Yemen accedes shall be the WTO Agreement, including the Explanatory Notes to that Agreement, as rectified, amended or otherwise modified by such legal instruments as may have entered into force before the date of entry into force of this Protocol. This Protocol, which shall include the commitments referred to in paragraph [...] of the Working Party Report, shall be an integral part of the WTO Agreement.

3. Except as otherwise provided for in paragraph [...] of the Working Party Report, those obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be implemented over a period of time starting with the entry into force of that Agreement shall be implemented by the Republic of Yemen as if it had accepted that Agreement on the date of its entry into force.

4. The Republic of Yemen may maintain a measure inconsistent with paragraph 1 of Article II of the GATS provided that such a measure was recorded in the list of Article II Exemptions annexed to this Protocol and meets the conditions of the Annex to the GATS on Article II Exemptions.

PART II - SCHEDULES

5. The Schedules reproduced in Annex I to this Protocol shall become the Schedule of Concessions and Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Republic of Yemen. The staging of the concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the respective Schedules.

WT/ACC/SPEC/YEM/5/Rev.5 Page 137

6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments annexed to this Protocol shall be the date of entry into force of this Protocol.

PART III - FINAL PROVISIONS

7. This Protocol shall be open for acceptance, by signature or otherwise, by the Republic of Yemen until [...] or such later date as may be decided by the [Ministerial Conference][General Council].

8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall have been accepted by the Republic of Yemen.

9. This Protocol shall be deposited with the Director-General of the WTO. The Director-General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by the Republic of Yemen thereto pursuant to paragraph 7 to each Member of the WTO and to the Republic of Yemen.

This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter of the United Nations.

Done at Geneva this [...] day of [...] in a single copy in the English, French and Spanish languages, each text being authentic, except that a Schedule annexed hereto may specify that it is authentic in only one of these languages, and the Working Party Report is authentic in English only.

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WT/ACC/SPEC/YEM/5/Rev.5 Page 138

ANNEX I

SCHEDULE ... - THE REPUBLIC OF YEMEN

Authentic only in the English language.

(Circulated in document WT/ACC/YEM/../Add.1)

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SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES

LIST OF ARTICLE II EXEMPTIONS

Authentic only in the English language.

(Circulated in document WT/ACC/YEM/../Add.2)]

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