WORLD TRADE ORGANIZATION

Transcription

1 WORLD TRADE ORGANIZATION Working Party on the Accession of Montenegro RESTRICTED WT/ACC/CGR/3/Add.1 8 March 2005 ( ) Original: English ACCESSION OF MONTENEGRO Memorandum on the Foreign Trade Regime Addendum The following submission is being circulated at the request of the Delegation of the Republic of Montenegro.

2

3 Page i TABLE OF CONTENTS ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX ANNEX

4

5 Page 1 ANNEX 1 Statistics and Publications 1. Foreign Trade Statistics for Goods and Services: Responsible Agencies The key government agency responsible for foreign trade statistics for goods and services is the Republic Bureau of Statistics. Information regarding trade in goods may also be obtained from the Republic Customs Administration. In addition, information regarding trade in services may be obtained from the Ministry for International Economic Relations and European Integrations. The Central Bank of Montenegro produces macroeconomic and fiscal indicators as well as balance of payment data. 2. Publications Related to Statistics The Republic Bureau of Statistics publishes publications related to statistics. These include: - Statistical Yearbook; - Statistical Month book; and - Press conference 15th of every month. In addition, the Central Bank of Montenegro produces an annual Bulletin and Economic Review. 3. Statistical Data Main Economic Indicators Table A1.1 GDP ( Million), ,245 1,250 1,375 Table A1.2 GDP Per Capita ( ), ,213 1,981 2,231 Table A1.3 - Consumer price index (price in DM until December 2001 and from January 2002) 2000=100 Annual change in % Food, tobacco and beverages annual changes Goods less food, tobacco and beverages annual changes Services annual changes

6 WT/ACC/CGR/2/Add.1 Page 2 Table A1.4 - Indicators on the Montenegrin labour market ( ) Number of persons employed Number of person unemployed Unemployment rate Short term unemployment rate Long term unemployment rate ,762 54, ,242 57, ,617 57, ,471 62, ,156 61, Table A1.5 - Employment by sectors (per cent of total) Agriculture Industry Services Public services Other services /6/ Table A1.6 - Annual change in the number of employed persons (in per cent) Agriculture Industry Services Public services Other services /6/

7 Table A1.7 - Balance of Payments (thousands US$) Jan-June 2003 Jan-June 2004 Change in 2004 (%) compared to the same period of 2003 GOODS Total Exports 305, , , , Export of goods excluding aluminium and trade with 51,075 77,780 28,923 54, Serbia and Kosovo Export of aluminium 157, ,672 65, , Export to Serbia and Kosovo 96, ,432 47,019 69, Total Imports 706, , , , Import of goods excluding electricity and trade with 390, , , , Serbia and Kosovo Import of oil and gas 100,259 56,686 20,125 28, Import of electricity 46,159 52,920 24,006 25,617 7 Import from Serbia and Kosovo 169, ,737 98, , Goods trade balance -401, , , , SERVICES Total Transportation Revenues 30,297 39,753 16,004 25, Total Transportation Expenditures 20,830 29,485 12,228 16, Transportation services balance 9,467 10,268 3,776 8, Total Revenues from Tourism 117, ,161 29,735 36, Total Expenditures to Tourism 7,573 11,496 4,833 3, Tourism balance 109, ,665 24,902 32, Revenues from Financial Services 2,540 3,21 1,555 1, Expenditures to Financial Services 3,151 7,623 4,112 3, Financial services balance ,404-2,557-1, Revenues from other Services 12,061 20,002 6,911 12, Expenditures to other Services 37,003 41,947 17,550 33, Balance of other services -24,942-21,945-10,639-21, Revenues from services 162, ,135 54,205 75, Expenditures to services 68,557 90,551 38,723 57, Balance of services 93, ,584 15,482 18, Total balance of goods and services -307, , , , Income Income revenues 95, ,738 67,267 80, Income expenditures 24,283 28,913 14,095 32, WT/ACC/CGR/3/Add.1 Page 3

8 Jan-June 2003 Jan-June 2004 Change in 2004 (%) compared to the same period of 2003 Balance of income 70, ,825 53,173 47, Current transfers Revenues 91,973 65,511 9,904 19, Transfers to Montenegro from abroad 5,189 3,657 1,046 5, Foreign assistance 39,784 27,663 8,858 14, ,000 34,191 Expenditures 9,655 10,397 4,452 6, Transfers from Montenegro to abroad 9,655 10,397 4,452 6, Balance of current transfers 82,318 55,114 5,452 13, Total revenues 654, , , , Total expenses 809, , , , Total balance of current account -154, ,033-92, , Capital and Financial Account Capital account Financial account 67, ,852 65, , Direct investment 84,329 44,913 8,022 37, Portfolio investment-net , Other investments 16,424 41,321 15,868 46, Net errors and omissions -86,582 5,819-26,918 4, WT/ACC/CGR/3/Add.1 Page 4

9 Page 5 Table A.1 - Consolidated Government Budget, (mill ) A Total revenue and grants (1+2) 233, , ,103 1 Total revenue (1.a+1.b) 221, , ,519 1.a Current revenue(1.a.1+1.a.2) 221, , ,519 1.a.1 Tax revenue (1.a a a a a.1.5) 187, , ,918 1.a.1.1 Personal income 56,654 57,889 63,961 1.a.1.2 Turnover (retail sales)tax 58,488 56, ,222 1.a.1.3 Excises 35,664 50,786 58,197 1.a.1.4 Taxes on international trade and transaction 27,274 26,376 36,845 Custom tariffs 13,894 12,605 35,078 Custom transit fees 13,380 13,771 1,776 1.a.1.5 Other taxes 9,920 17,342 16,694 1.a.2 Non-tax revenues 33,221 20,916 24,601 1.b Capital revenue 2 Grants 11,920 26,958 12,584 B Total expenditure and net lending (1+2) 259, , ,090 1 Total expenditure (1.a+1.b) 252, , ,924 1.a Current expenditure 233, , ,235 1.a.1 Interest 0,622 12,880 14,136 1.a.2 Non-interest 232, , ,099 (1.a a a a a a.2.6) 1.a.2.1 Wages and salaries 108, , ,262 1.a.2.2 Goods and services 55,351 41,817 37,858 1.a.2.3 Social insurance and social security transfers 45,327 35, ,795 1.a.2.4 Subsidies to enterprises 12,249 18,169 14,631 1.a.2.5 Reserve 6,461 14,819 8,388 1.a.2.6 Other non-interest expenditure 4,813 3,010 3,165 1.b Capital expenditure 19,298 10,820 13,688 2 Net lending 6,723 19,254 22,167 Lending 13,974 19,490 22,590 Repayment 7,250 0,236 0,423 Overall budget balance excluding grants (cash) -38,089-36,925-43,571 Overall budget balance (cash) -26,169-9,967-30,987 C Financing (1+2) 26,129 38,254 18,395 1 Domestic and foreign financing 17,007 0,568 6,234 Borrowing 76,436 40,445 48,246 Repayment 59,430 39,877 42,012 2 Privatization receipts 9,122 37,686 12,161 Table A1.8 Average Annual Exchange Rates, Average US$ GBP AUD CAD

10 Page 6 Table A1.9 Exchange Rate, Year Period US$ 2001 Average Average Month I II III IV V VI VII VIII IX X XI XII Average Month I II III IV V VI VII VIII IX X XI Average Foreign trade statistics Table A1.10 Foreign Trade, 2004 HS Chapter Description Exports Imports % Of Total % Of Total (1,000 ) (1,000 ) Exports Imports 01 Live animals 90,372 1,906, Meat and edible meat offal 1,142,012 18,353, Fish and crustaceans, molluscs and other 568,752 2,052, aquatic invertebrates 04 Dairy produce; birds' eggs; natural 37,090 19,165, honey; edible products of animal origin, not elsewhere specified or included 05 Products of animal origin, not elsewhere 20, , specified or included 06 Live trees and other plants; bulbs, roots 17, , and the like; cut flowers and ornamental foliage 07 Edible vegetables and certain roots and 978,916 2,065, tubers 08 Edible fruit and nuts; peel of citrus fruit or melons 1,227,914 4,176,

11 Page 7 HS Chapter Description Exports Imports % Of Total % Of Total (1,000 ) (1,000 ) Exports Imports 09 Coffee, tea, mate and spices 272,820 11,607, Cereals 582,559 9,440, Products of the milling industry; malt; starches; inulin; wheat gluten 237,748 9,022, Oil seeds and oleaginous fruits; 217, , miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder 13 Lac; gums, resins and other vegetable , saps and extracts 14 Vegetable plaiting materials; vegetable 9 44, products not elsewhere specified or included 15 Animal or vegetable fats and oils; and 197,598 1,340, their cleavage products; prepared edible fats; animal or vegetable waxes 16 Preparations of meat, of fish or of 595,220 12,934, crustaceans, molluscs; or other aquatic invertebrates 17 Sugars and sugar confectionery 1,236,272 10,739, Cocoa and cocoa preparations 288,371 7,180, Preparations of cereals, flour, starch or 1,406,092 14,536, milk; pastry cooks' products 20 Preparations of vegetables, fruit, nuts or 282,517 11,670, other parts of plants 21 Miscellaneous edible preparations 3,995,007 11,061, Beverages, spirits and vinegar 16,469,335 30,178, Residues and waste from the food industries; prepared animal fodder 730,732 3,963, Tobacco and manufactured tobacco 12,662,908 6,556, substitutes 25 Salt; sulphur; earths and stone; plastering 3,266,909 12,729, materials, lime and cement 26 Ores, slag and ash 1,119, , Mineral fuels, mineral oils and products 3,044,188 59,629, of their distillation; bituminous substances; mineral waxes 28 Inorganic chemicals; organic or inorganic 3,823,108 3,338, compounds of precious metals, of rareearth metals, of radioactive elements or of isotopes 29 Organic chemicals 81,330 2,003, Pharmaceutical products 5,364,593 24,200, Fertilizers 0 1,418, Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and 950,879 7,014, other colouring matter; paints and varnishes; putty and other mastics; inks 33 Essential oils and resinoids; perfumery cosmetic or toilet preparations 4,055,729 9,868,

12 Page 8 HS Chapter Description 34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, "dental waxes" and dental preparations with a basis 35 Albuminoidal substances; modified starches; glues; enzymes 36 Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations Exports Imports % Of Total % Of Total (1,000 ) (1,000 ) Exports Imports 3,083,647 9,485, ,996 1,190, ,217,760 1,028, Photographic or cinematographic goods 47,267 1,038, Miscellaneous chemical products 462,789 5,101, Plastics and articles thereof 2,180,017 19,493, Rubber and articles thereof 989,593 5,692, Raw hides and skins (other than fur skins) and leather 42 Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut) 2,582,963 93, ,491 1,640, Fur skins and artificial fur, manufactures 0 1, thereof 44 Wood and articles of wood; wood 16,635,682 7,793, charcoal 45 Cork and articles of cork 10, , Manufactures of straw, of esparto or of other plaiting materials; basket-ware and wickerwork 274, , Pulp of wood or of other fibrous cellulose material; recovered (waste and scrap) paper or paperboard 48 Paper and paperboard; articles of paper pulp, of paper or of paperboard 49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans 454,482 1, ,348,553 16,416, ,089,016 7,081, Silk 5,140 15, Wool, fine and coarse animal hair; 354,211 88, horsehair yarn and woven fabric 52 Cotton 296, , Other vegetable textile fibre; paper yarn 14 17, and woven fabrics of paper yarn 54 Man-made filaments 14, , Man-made staple fibres 15, , Wadding, felt and non-woven; special yarns; twine, cordage, ropes and cables and articles thereof 182, , Carpets and other textile floor-coverings 40,653 1,938, Special woven fabrics; tufted textile 26, , fabrics; lace; tapestries; trimmings; embroidery 59 Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use 2, ,

13 Page 9 HS Chapter Description Exports Imports % Of Total % Of Total (1,000 ) (1,000 ) Exports Imports 60 Knitted or crocheted fabrics 33,721 37, Articles of apparel and clothing 249,211 2,110, accessories, knitted or crocheted 62 Articles of apparel and clothing 784,019 6,586, accessories, not knitted or crocheted 63 Other made up textile articles; sets; worn 45,960 2,242, clothing and worn textile articles; rags 64 Footwear, gaiters and the like; parts of 135,376 7,753, such articles 65 Headgear and parts thereof 3, , Umbrellas, sun umbrellas, walkingsticks, 43, , seat-sticks, whips, riding-crops and parts thereof 67 Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair 10,200 64, Articles of stone, plaster, cement, 165,749 4,583, asbestos, mica or similar materials 69 Ceramic products 308,527 12,306, Glass and glassware 242,629 6,410, Natural or cultured pearls, precious or , semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coin 72 Iron and steel 13,221,712 17,101, Articles of iron or steel 3,226,178 17,006, Copper and articles thereof 685, , Nickel and articles thereof 2, , Aluminium and articles thereof 146, ,850, Lead and articles thereof 63,394 75, Zinc and articles thereof 2, , Tin and articles thereof 14 6, Other base metals; cermets; articles 18,188 43, thereof 82 Tools, implements, cutlery, spoons, forks 519,936 10,729, or base metal; parts thereof of base metal 83 Miscellaneous articles of base metal 1,533,677 2,948, Nuclear reactors, boilers, machinery and 33,230,407 70,970, mechanical appliances; parts thereof 85 Electrical machinery and equipment and 2,347,474 45,024, parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 86 Railway or tramway locomotives, 54,579 2,383, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds 87 Vehicles other than railway or tramway 1,141,336 69,929, rolling-stock, and parts and accessories thereof 88 Aircraft, spacecraft, and parts thereof 74, , Ships, boats and floating structures 981,781 25,871,

14 Page 10 HS Chapter Description 90 Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof Exports Imports % Of Total % Of Total (1,000 ) (1,000 ) Exports Imports 131,049 8,864, Clocks and watches and parts thereof 52, , Musical instruments; parts and , accessories of such articles 93 Arms and ammunition; parts and , accessories thereof 94 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates 1,385,238 20,799, and the like; prefabricated buildings 95 Toys, games and sports requisites; parts 337,352 3,367, and accessories thereof 96 Miscellaneous manufactured articles 679,319 7,115, Work of art, collectors' pieces and 162,329 63, antiques Total 311,222, ,029, Table A1.11 Exports of Montenegro (million ) Exports 263,8 261,9 311,2 Table A1.12 Main Export Items in 2004 by Value (Million ) Goods Exports % Of Total Total Aluminium, not alloyed Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Wood and articles of wood; wood charcoal Beverages, spirits and vinegar Iron and steel Tobacco and manufactured tobacco substitutes Pharmaceutical products Printed books, newspapers, pictures and other Miscellaneous edible preparations

15 Page 11 Table A1.13 Main Export Partners in 2004 (Million ) Country 2004 Serbia &Montenegro Italy 91.9 Greece 36.8 Bosnia & Herzegovina 12.5 Spain 5.9 Croatia 3.8 Switzerland 1.8 Germany 1.7 Albania 1.7 Slovenia 1.5 Table A1.14 Imports of Montenegro (Million ) Imports Table A1.15 Main Import Partners in 2004 (Million ) Country 2004 Serbia Slovenia 63.6 Italy 60.9 Greece 42.2 Germany 38.6 Croatia 33.1 Austria 32.3 Bosnia and Herzegovina 24.1 France 14.8 Hungary 13.7 Great Britain 5.8 Table A1.16 Main Import Items by Value in 2004 Goods Imports (Million ) % Of Total Imports Total 758, Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof Ships, boats and floating structures Pharmaceutical products Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting f ittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings Plastics and articles thereof

16 Page 12 Goods Imports (Million ) % Of Total Imports Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included Meat and edible meat offal Iron and steel Articles of iron or steel Paper and paperboard; articles of paper pulp, of paper or of paperboard Table A1.17 Trade with Europe in 2004 Turnover (1,000 ) Share (% Of total trade) Exports (1,000 ) Imports (1,000 ) Europe 1,002, , , Serbia and Montenegro 413, , , Italy 152, , , Greece 79, , , Slovenia 65, , , Germany 40, , , Croatia 36, , , Bosnia and 36, , , Herzegovina Austria 32, , Switzerland 19, , , Hungary 17, , , France 15, , Great Britain 10, , , Spain 10, , , Czech Republic 9, , Netherlands 9, , FYR Macedonia 7, , Romania 7, , Cyprus 6, , Sweden 6, , Bulgaria 6, , Belgium 4, , Albania 3, , , Poland 3, , Ukraine 2, , Denmark 1, , Slovakia 1, , Russia 1, Ireland Norway Finland

17 Page 13 Table A1.18 Trade with the Americas in 2004 Turnover (1,000 ) Share (% Of total trade) Exports (1,000 ) Imports (1,000 ) America 19587, , ,00 USA 12781, , ,51 British Virgin Islands 4281, , ,75 Panama 892, ,00 892,31 Brazil 867, ,00 867,66 Canada 474, ,12 410,05 Bahamas 223, ,00 223,65 Argentina 65, ,00 65,97 Table A1.19 Trade with Africa in 2004 Turnover (1,000 ) Share (% Of total trade) Exports (1,000 ) Imports (1,000 ) Africa 1, , Egypt Liberia Algeria Libya Table A1.20 Trade with Asia in 2004 Turnover (1,000 ) Share (% Of total trade) Exports (1,000 ) Imports (1,000 ) Asia 41, , Japan 30, , Turkey 4, , China 4, , Israel India South Korea Singapore Table A1.21 Trade with Australia in 2004 Turnover Share Exports Imports (1,000 ) (% Of total trade) (1,000 ) (1,000 ) Australia Table A1.22 Trade with other countries in 2004 Turnover Share Exports Imports (1,000 ) (% Of total trade) (1,000 ) (1,000 ) Other countries 4, , ,326.96

18 Page 14 Table A1.23 Trade-Weighted Average Import Tariff Rates HS Chapter Description Average Tariff Rate 01 Live animals Meat and edible meat offal Fish and crustaceans, molluscs and other aquatic invertebrates Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included 05 Products of animal origin, not elsewhere specified or included Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage 07 Edible vegetables and certain roots and tubers Edible fruit and nuts; peel of citrus fruit or melons Coffee, tea, mate and spices Cereals Products of the milling industry; malt; starches; inulin; wheat gluten Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or 7.52 medicinal plants; straw and fodder 13 Lac; gums, resins and other vegetable saps and extracts Vegetable plaiting materials; vegetable products not elsewhere specified or 1.54 included 15 Animal or vegetable fats and oils; and their cleavage products; prepared edible fats; 4.04 animal or vegetable waxes 16 Preparations of meat, of fish or of crustaceans, molluscs; or other aquatic invertebrates 17 Sugars and sugar confectionery Cocoa and cocoa preparations Preparations of cereals, flour, starch or milk; pastry cooks' products Preparations of vegetables, fruit, nuts or other parts of plants Miscellaneous edible preparations Beverages, spirits and vinegar Residues and waste from the food industries; prepared animal fodder Tobacco and manufactured tobacco substitutes Salt; sulphur; earths and stone; plastering materials, lime and cement Ores, slag and ash Mineral fuels, mineral oils and products of their distillation; bituminous substances; 1.98 mineral waxes 28 Inorganic chemicals; organic or inorganic compounds of precious metals, of rareearth 3.26 metals, of radioactive elements or of isotopes 29 Organic chemicals Pharmaceutical products Fertilisers Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other 2.49 colouring matter; paints and varnishes; putty and other mastics; inks 33 Essential oils and resinoids; perfumery cosmetic or toilet preparations Soap, organic surface-active agents, washing preparations, lubricating preparations, 6.06 artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, "dental waxes" and dental preparations with a basis 35 Albuminoidal substances; modified starches; glues; enzymes Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible 7.09 preparations 37 Photographic or cinematographic goods Miscellaneous chemical products Plastics and articles thereof Rubber and articles thereof 5.51

19 Page 15 HS Chapter Description Average Tariff Rate 41 Raw hides and skins (other than furskins) and leather Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut) 43 Fur skins and artificial fur, manufactures thereof Wood and articles of wood; wood charcoal Cork and articles of cork Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork 47 Pulp of wood or of other fibrous cellulose material; recovered (waste and scrap) 1.00 paper or paperboard 48 Paper and paperboard; articles of paper pulp, of paper or of paperboard Printed books, newspapers, pictures and other products of the printing industry; 6.50 manuscripts, typescripts and plans 50 Silk Wool, fine and coarse animal hair; horsehair yarn and woven fabric Cotton Other vegetable textile fibre; paper yarn and woven fabrics of paper yarn Man-made filaments Man-made staple fibres Wadding, felt and non-woven; special yarns; twine, cordage, ropes and cables and 7.54 articles thereof 57 Carpets and other textile floor-coverings Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind 6.14 suitable for industrial use 60 Knitted or crocheted fabrics Articles of apparel and clothing accessories, knitted or crocheted Articles of apparel and clothing accessories, not knitted or crocheted Other made up textile articles; sets; worn clothing and worn textile articles; rags Footwear, gaiters and the like; parts of such articles Headgear and parts thereof Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts 5.00 thereof 67 Prepared feathers and down and articles made of feathers or of down; artificial 7.50 flowers; articles of human hair 68 Articles of stone, plaster, cement, asbestos, mica or similar materials Ceramic products Glass and glassware Natural or cultured pearls, precious or semi-precious stones, precious metals, metals 9.55 clad with precious metal and articles thereof; imitation jewelry; coin 72 Iron and steel Articles of iron or steel Copper and articles thereof Nickel and articles thereof Aluminium and articles thereof Lead and articles thereof Zinc and articles thereof Tin and articles thereof Other base metals; cermets; articles thereof Tools, implements, cutlery, spoons, forks or base metal; parts thereof of base metal Miscellaneous articles of base metal Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 2.06

20 Page 16 HS Chapter Description 86 Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electromechanical) traffic signalling equipment of all kinds 87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof Average Tariff Rate Aircraft, spacecraft, and parts thereof Ships, boats and floating structures Optical, photographic, cinematographic, measuring, checking, precision, medical or 1.76 surgical instruments and apparatus; parts and accessories thereof 91 Clocks and watches and parts thereof Musical instruments; parts and accessories of such articles Arms and ammunition; parts and accessories thereof Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings 95 Toys, games and sports requisites; parts and accessories thereof Miscellaneous manufactured articles Work of art, collectors' pieces and antiques 5.00 Total Montenegro Export Import data Import GDP % Import of % Export of Opening Export GDP GDP degree % % % % Jan-Sep % Import growth rate Export growth rate % Export of Import Deficit of goods (mil ) Increase/ decrease trade deficit (%) Deficit of goods in GDP (%) (295.3) (384.6) (0.0) (330.6) (0.7) 34.9 (488.7) Jan-Sep (446.8)

21 Page EU import mil % share in % share in export mil total import total export England 50,277, , Italy 35,370, ,036, Germany 17,325, ,050, France 4,110, , Portugal Spain 1,520, Austria 16,622, , Belgian 1,397, , Denmark 978, Finland 36, Ireland 849, Luxemburg 105, , Sweden 7,951, , Holland 5,825, , Greece 9,901, , Total EU 152,273, ,144, % share EU 32.44% 8.70% 2001 England 25,238, , Italy 54,403, ,548, Germany 26,866, , France 3,512, , Portugal 84, Spain 4,998, , Austria 28,192, , Belgian 3,295, , Denmark 2,379, Finland 6, Ireland 986, , Luxemburg 7, , Sweden 10,434, , Holland 4,064, , Greece 14,120, ,205, Total EU 178,588, ,208, % share EU 30,04% 8,20% 2002 England 47,905, , Italy 65,357, ,828, Germany 34,791, , France 4,507, , Portugal 94, Spain 5,255, Austria 26,065, , Belgian 2,738, , Denmark 1,553, Finland 16, Ireland 870, Luxemburg 4, Sweden 6,805, , Holland 10,231, , Greece 41,484, , Total EU 247,682, ,781, % share EU 41.67% 6.74%

22 Page EU import mil % share in % share in export mil total import total import England 15,523, , Italy 60,363, ,041, Germany 32,394, ,669, France 7,207, , Portugal Spain 3,168, , Austria 27,329, , Belgian 2,047, , Denmark 1,201, , Finland 6, Ireland 367, , Luxemburg 185, Sweden 4,897, , Holland 4,481, ,256, Greece 54,751, ,169, Total EU 213,923, ,893, % share EU 28.50% 8.36% Jan-Sep 2004 England 5,801,577, ,066,423, Italy 60,919,334, ,897,774, Germany 38,584,012, ,743,139, France 14,864,934, ,740, Portugal Spain 4,399,065, ,937,472, Austria 32,310,342, ,158, Belgian 2,987,270, ,031, Denmark 1,563,852, ,336, Finland ,758, Ireland 870,564, ,000, Luxemburg 421,421, ,608, Sweden 6,917,166, ,720, Holland 8,945,404, ,435, Greece 15,862,571, ,844,300, Total EU 194,447, ,127,898, % share EU 25,65% 45,67%

23 Page 19 ANNEX 2 List of Laws and Legal Acts 1. Laws and Legal Acts Regulating the Activity of Customs Authorities: responsible agencies The main laws that govern the activity of the customs authorities are the Customs Law (RM OG No. 7/02, 38/02, 72/02, 21/03, 31/03) dated 30 January 2002, the Law on Customs Service (RM OG No. 7/02), Decree on Implementation of the Customs Law (RM OG No. 15/03), the Decree on Customs Tariffs (RM OG NO. 47/03) dated 11 August 2003 and the Free Zones Law (RM OG No. 42/04) dated 16 June The responsible agency for the implementation of all these legal acts is the Customs Administration of Montenegro. 2. Laws and Legal Acts Relating to Non-Tariff Regulation of Imports, Exports and Trade in Transit, Rules of Origin: responsible agencies The main legal acts governing the foreign trade are the Foreign Trade Law (RM OG No. 28/04), the Decree for the Implementation of the Foreign Trade Law (RM OG No. 52/04) and the Decision on the Control List for Export and Import of Goods (RM OG No. 44/04). The responsible agency for the implementation of these legal acts is the Ministry for International Economic Relations and European Integration along with the Customs Administration. Laws and Legal Acts FRY Legal Acts Decision on the Level and Method of Paying Fees Covering Costs of Quality Control of Agriculture and Food Products and Products Made Thereof Destined for Export or Import (FRY OG No. 62/97, 55/98) The Law on Standardization (FRY OG No. 30/96, 59/98, 70/2001, 8/2003) The Law on Health of Foodstuffs and Items of General Use (SFRY OG No. 53/91; FRY OG No. 24/94, 28/96, 37/02) The Law on Plant Protection (FRY OG No. 24/98 26/98) The Law on Protection from Ionizing Radiation (FRY OG No. 46/96) The Law on Transport of Dangerous Substances (SFRY OG No. 27/90, 45/90; FRY OG 24/94, 28/96, 21/99, 44/99, 68/02) The Regulations on Health Inspection of Plant Shipments Crossing the State Border (FRY OG No. 69/99) The Law on Production and Circulation of Poisonous Substances (FRY OG No. 15/95, 28/96, 37/02) Law on Production and Circulation of Narcotics (FRY OG No. 46/96, 37/02) Order on Prohibiting Import and Transit of Specific Types of Plants and Determining Quarantine Surveillance over Specific Types of Plants that are Imported for Variety (FRY OG No. 8/99) RM Legal Acts Decree on Special Charge on Importation of Agricultural and Food Products (RM OG No. 61/03, 63/03) Decree on Amount and Procedure of Charging of Fees for Services Rendered by the Customs Authorities (RM OG No. 20/03) Responsible Agencies The Customs Administration, the Ministry of Economy The State Union Bureau for Standardization The Ministry of Health, the Ministry of Agriculture The Ministry of Agriculture The Ministry of Environmental Protection and Physical planning The Ministry of Environmental Protection and Physical Planning, the Ministry of Health The Ministry of Agriculture The Ministry of Health The Ministry of Health The Ministry of Agriculture The Customs Administration The Customs Administration

24 Page 20 Laws and Legal Acts The Decree on Procedure for Realization of Rights on Customs Duty Exemption (RM OG No. 22/03) Decision on Seasonal Customs Rates for Import of Specific Agricultural Products (RM OG No 38/00) The Decree on Fees for Use of Roads for Transit of Goods across the Territory of Montenegro (RM OG No. 33/03) The Tobacco Law (RM OG No. 80/04) The Law on Medicines (RM OG No. 80/04) Decision on Keeping Foreign Currencies with a Commercial Bank (RM OG No. 8/01) The Customs Administration The Customs Administration The Ministry of Transport and Navigation, the Customs Administration The Ministry of Agriculture, Forestry and Water Supply The Ministry of Health The Central Bank of Montenegro 3. Laws and Regulations Relating to Foreign Investment: responsible agencies The Republic of the Montenegro has the Law on Foreign Investment (RM OG No. 52/00) dated 1 November The RM Agency for Foreign Investment is responsible for the enforcement of the Law. Also, the Montenegrin Foreign Investment Promotion Agency has been established by the Decision on Establishment of the Montenegrin Foreign Investment Promotion Agency (RM OG No. 33/04). 4. Other Laws and Legal Acts Dealing with Economic Issues that Affect Trade: responsible agencies Laws and Legal Acts FRY/SCG Legal Acts The Antimonopoly Law (FRY OG No. 29/96) The Patent Law (SCG OG No. 32/04) The Law on Models and Designs (FRY OG No. 15/95, 28/96) The Trademark Law (FRY OG No. 15/95, 28/96) The Law on Copyright and Related Rights (FRY OG No. 24/98) The Law on Ratification of the Agreement on Implementation of Article VII of GATT and the Protocol Associated with it (FRY OG No. 1/82 international agreements) RM Legal Acts The Law on Social Price Control (SRM OG No. 45/90) The Law on Ownership and Management Transformation (RM OG No. 2/92, 17/92, 59/92, 4/93,27/94, 23/96) The Law on Companies Established and Operating under Special Conditions in Montenegro (RM OG No. 23/96, 34/02, 62/02) The Law on Business Entities (RM OG No. 6/02) The Law on Assets of Republic Montenegro (RM OG No. 44/99) The Law on Privatization of the Economy (RM OG No. 23/96, 6/99, 59/00) Decision on Establishment and Structure of the Privatization Council (RM OG No. 33/98, 24/99, 38/01) Decree on Sale of Shares and Company Assets by Public Auction (RM OG No. 25/99, 42/99, 18/00) Responsible Agencies Intellectual Property Office Intellectual Property Office Intellectual Property Office Intellectual Property Office Intellectual Property Office Intellectual Property Office The Ministry of Economy The Government of Montenegro The Government of Montenegro The Ministry of Justice The Ministry of Finance The Government of RM, Agency for Restructuring of Economy and for Foreign Investment, Privatization Council The Government of Montenegro The Government of RM, Agency for Restructuring of Economy and for Foreign Investment, Privatization Council and Auction Commission

25 Page 21 Laws and Legal Acts Decree on Sale of Shares and Company Assets by Public Tender (RM OG No. 8/99, 31/00) Decree on Privatization Funds and Specialized Private Management Companies (RM OG No. 8/99, 18/00) Decree on Publishing, Acquiring and Use of Privatization Vouchers (RM OG No. 17/01, 37/01) Decree on Dematerialization of Securities and Privatization Vouchers (RM OG No. 8/99, 26/00) Decree on the Mode of Implementing the Employee's Right to Free Shares (RM OG No.24/99) Decree on Acquiring Shares Using Frozen Foreign Currency Savings (RM OG No. 30/99) The Law on Employment (RM OG No. 5/02) The Public Procurement Law (RM OG No. 40/01) The Law on Public Information (RM OG No. 4/98) The Excise Tax Law (RM OG No. 65/01, 12/02) The Law on Value Added Tax (RM OG No. 65/01, 12/02, 38/02, 72/02, 21/03) The Law on Administrative Fees (RM OG No. 55/03) The Law on Legal Entities Profit Tax (RM OG No. 65/01, 12/02) The Law on Legal Entities Profit Tax (RM OG No. 65/01, 12/02) The Real Estate Law ( RM OG No. 65/01, 69/03) The Law on Property Tax (RM OG No. 3/92,30/93,3/94,42/94, 11/95, 20/95, 45/98, 65/01, 69/03) The Law on Courts (RM OG No. 5/02, 49/04) The Law on Enforcement( RM OG No. 23/04) The Criminal Law (RM OG No. 70/03) The Law on Citizenship (RM OG No.41/99) Responsible Agencies The Agency for Restructuring of Economy and for Foreign Investment, Privatization Council and Tender Commission The Ministry of Finance, Privatization Council The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Labour and Social Welfare The Government of Montenegro The Ministry of Culture The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Finance The Ministry of Justice The Ministry of Justice The Ministry of Justice The Ministry of Interior Affairs 5. Laws and Legal Acts Dealing with Services A. Existing Laws, Regulations or Administrative Guidelines - Laws - FRY/SCG Laws - The Law on Legal Practice (FRY OG No. 24/98, 26/98, 69/2000); - The Law on Records of Scientific, Technical, Technological, Cultural and Educational Cooperation with Foreign Countries (FRY OG No. 12/98); - The Law on Basic Property Relations (SFRY OG No. 6/80, 36/90; FRY OG No. 29/96); - The Law on Postal, Telegraph and Telephone Services (FRY OG No. 2/86, 26/90); - The Law on Personal and Property Insurance (FRY OG No. 30/96, 57/98, 21/99, 44/99, 53/99, 55/99); - The Law on Contracts and Torts (SFRY OG No. 29/78 FRY OG No. 31/93, 22/99, 44/99); - The Law on Banks and Other Financial Organizations (FRY OG No. 32/93, 24/94, 5/95, 6/95, 28/96, 16/99, 44/99, 36/02, 37/02); - The Law on Maritime and Internal Shipping (FRY OG No. 12/98, 44/99, 74/99, 73/00); - The Law on Air Traffic (FRY OG No.12/98, 5/99,38/99, 44/99, 73/00, 70/01); - The Law on Contracts and Torts and Basic Property Relations in Air Traffic (FRY OG No. 12/98, 15/98);

26 Page 22 - The Law on International Road Transport (FRY OG No. 60/98, 5/99, 44/99, 74/99, 4/00); and - The Law on Contracts and Torts in Road Transport (FRY OG No. 26/95). - RM Laws - The Law on Private Sector Participation in Supply of Public Services (RM OG No. 30/02); - The Law on Accounting and Auditing (RM OG No. 6/02); - The Law on Construction (RM OG No. 55/00); - The Law on Zoning (RM OG No. 16/95, 22/95, 10/00); - The Law on Veterinary Measures (RM OG No. 11/04); - The Law on Scientific Activities (RM OG No.37/92, 27/94); - The Law on Hunting (RM OG No. 47/99); - The Law on Forests (RM OG No. 55/00); - The Law on Maritime Fishing (RM OG No. 55/03); - The Law of Mining (RM OG No. 28/93, 27/94); - The Law on Geological Research (RM OG No. 28/93, 27/94, 42/94); - The Law on Energy (RM OG No. 39/03); - The Law on Publishing (RM OG No. 20/95, 22/95, 64/02); - The Law on Telecommunications (RM OG No. 59/00); - The Law on Cinematography (RM OG No. 45/93, 27/94); - The Law on Broadcasting (RM OG No. 51/02, 62/02); - The Law on Space and Urban Planning (RM OG No. 16/95, 22/95, 10/00); - The Law on Elementary Education (RM OG No. 64/02); - The Law on Professional Education (RM OG No. 64/02); - The Law on Grammar School (RM OG No. 64/02); - The Law on Higher Education (RM OG No. 60/03); - The Law on Adult Education (RM OG No. 64/02); - The Law on Preschool Education ( RM OG No. 64/02); - The Law on Utility Services (RM OG No. 12/95); - The Law on Banks (RM OG No. 52/00, 53/00, 47/01, 32/02, 55/03); - The Law on Central Bank of Montenegro (RM OG No. 52/00, 53/00, 47/01); - The Law on Deposit Protection (RM OG No. 40/03); - The Law on Securities (RM OG No. 59/00, 10/01); - The Law on Health Care (RM OG No. 39/04); - The Law on Health Insurance (RM OG No. 39/04); - The Law on Social and Children Protection (RM OG No. 45/93, 27/94, 16/95, 44/01, 43/03); - The Law on Tourism (RM OG No. 32/02, 41/02, 45/02, 38/03); - The Law on Theatre Activity (RM OG No. 60/01); - The Law on Media (RM OG No. 51/02, 62/02); - The Law on Library Activity (RM OG No. 16/77, 2/89,29/89, 39/89, 27/94); - The Law on Archives Activity (RM OG No. 25/92, 6/94); - The Law on Sport (RM OG No. 13/94, 27/94); - The Law on Maritime and Internal Shipping (SRM OG No. 13/78, 8/79, 19/87, 36/89, 13/91); - The Law on Railway (RM OG No. 48/91, 17/92, 27/94); and - The Law on Road Transport (SRM OG No. 21/91, 24/91, RM OG No. 48/91, 17/92, 56/92, 27/94, 48/99). - Other legal acts - FRY/SCG - General Conditions for the Provision of Postal Services (FRY OG No. 15/98); - Naval Customary Rules (FNRY OG No. 2/51);

27 Page 23 - Regulation on Qualification Requirements for Insurance Company Managers (FRY OG No. 39/96); - Decree on Acquisition of an Actuary's Licence (FRY OG No. 24/97, 17/98); - Decision on Overtaking of National Bank of Yugoslavia Certain Competences In Order to Protect Economic Interests of RM (RM OG No. 41/99, 43/99, 5/00, 22/00); - Decision on Overtaking of National Bank of Yugoslavia Certain Competences In Order to Protect Economic Interests of RM (RM OG No. 41/99, 43/99, 5/00, 22/00); and - Statute of "Montenegroberza" - Mixed Financial Exchange Podgorica (FRY OG No. 7/98). - RM - Tariff on Fees and Compensation of Costs for Performance of Attorney's Activities (RM OG No. 18/02); - Decree on Personal and Property Insurance (RM OG No. 42/00); - Rules on Exchange Operating Licence Issuance (RM OG No. 16/01, 45/01); and - Decision on Overtaking of National Bank of Yugoslavia Certain Competences In Order to Protect Economic Interests of RM (RM OG No. 41/99, 43/99, 5/00, 22/00). B. Publications or sources of information, concerning measures of general application, of relevance to the GATS All legal acts (laws, decrees, regulations, orders, decisions etc.) are published in the Official Gazette of the Republic of Montenegro. C. Enquiry points, if any, as foreseen in Article III of GATS The Republic of Montenegro will appoint person who will serve as a Enquiry Point for GATS before the first Working Party meeting.

28 Page 24 ANNEX 3 Information on Import Licensing Procedures Excerpt from the Foreign Trade Law (RM OG No. 28/04) related to licenses 2. LICENSES Article 19 General Rule The Government may, in accordance with the provisions of this Law, require licenses for the Import, Export, or Transit of certain goods, which shall be based on objective and rational criteria, conditions and procedures. Article 20 Allowable Criteria for Import and Transit Licenses The Government may require Import or Transit licenses only when it is necessary to: 1. protect human, animal or plant life or health; 2. protect national security; 3. protect environment or exhaustible natural resources; 4. protect public morals; 5. protect intellectual property rights; or 6. enforce any special rules related to gold and silver. Article 21 Criteria for Export Licenses The Government may require Export licenses only when it is necessary to: 1. protect national treasures of artistic, cultural, historic or archaeological value; 2. protect endangered species or plants; 3. protect national security; 4. protect environment or exhaustible natural resources; 5. protect intellectual property rights; or 6. enforce any special rules for trade in gold and silver. Article 22 Authority to Grant Licenses 1. The competent authority shall be the sole authority competent to decide upon applications for Import, Transit or Export licenses. 2. When deciding upon applications referred to paragraph 1 of this Article, the competent authority may consult other relevant state bodies if necessary. 3. Exceptionally to the provision of paragraph 1 of this Article: 1. The State Authority competent for cultural matters shall decide upon applications for licenses for the Export of artefacts of artistic, cultural, historical and archaeological value;

29 Page The State Authority competent for the protection of animal and plant health shall decide on applications for licenses for the Import of animals, plant and animal products and other goods that may carry or transmit pests, animal disease or zoonozes to plants, animals and humans; 3. The State Authority competent for environmental protection shall decide on applications for licenses for the Import, Transit or Export of hazardous waste, as well and rare plant and animal species; 4. The State Authority competent for health protection shall decide on applications for licenses for the Import medicines, medical devices and other goods that may be used for medicinal purposes. Article 23 Time Limits to Decide on Licence Applications 1. The period for processing applications for Import, Transit, or Export licenses shall not exceed 15 days as of the day of application if applications are considered as and when received, i.e. on a first-come first-served basis. 2. Such period shall not exceed 30 days if all applications are considered simultaneously, where such period shall begin to run on the day following the closing date of the announced application period. Article 24 Conditions for Licenses 1. Licenses issued shall specify conditions to be fulfilled by the licensee and the rationale. 2. Detailed conditions for issuance of import, export or transit of certain goods shall be specified by the Government. 3. Licenses may be issued for one or more types of goods. 4. Exceptionally to the provision of paragraph 3 of this Article: 1. in the case of agricultural goods and other goods that may carry a pest or disease that can cause significant harm to the health or life of plants or animals in the Republic, the licence shall be issued for a single type of goods; or 2. in the case of artistic, cultural, historical and archaeological artefacts the licence shall be issued for each particular article or a single licence for more articles if they constitute one consignment. Article 25 Procedural Errors 1. An application for issuance of a licence shall not be refused for procedural documentation errors that do not alter the basic data contained therein. 2. A decision to refuse issuance of a licence must be provided to the applicant in writing with the rationale for such decision.