No. Objective The measure from the ap

NPD- establishes a limited list of priorities that has an important impact concerning the social and economic development until 2011.

MoET MoERN

2. Complete the establishment of administrative structures and procedures to ensure strategic planning of sustainable development and co-ordination between relevant actors

To consolidate the public administrative capacity is one of the most important conditions for NPD implementation. In order to consolidate the strategic capacities for planification, analysis, monitoring and political evaluation, to tend for program objectives achievement for the country development. The Government decided to create the unities for analysis, monitoring and political evaluation in each unity of the Central Public Administration. At the moment such unities are instituted in 7 ministries and they are working in order to create a unity for analysis, monitoring and political evaluation in Governmental structures.

MoET

3. Take steps to further improve integration of environmental considerations into other policy sectors, particularly industry, energy, transport, regional development and agriculture.

MoERN

4. Longer term objective – Implement the national long-term strategy on sustainable development.

The Strtegy document of NDP and the draft of Action Plan for implementation are in rhe process of finilising and its one be approved at the end of this year. Thus, in 2008, will start the implementation of NDP.

MoET

2.4 Trade-related issues, market and regulatory reform 2.4.1 Movement of Goods Trade Relations

1. Full implementation of PCA commitments in title III, and fulfilment of all obligations linked to WTO membership.

The actions in this regard were directed to the following activities: - adjustment of the national legislation to the requirements of WTO, - monitoring of the fulfilment of the obligations undertaken with international organisations and the WTO countries, - fulfilment of the decisions undertaken under the new rounds of multilateral trade negotiations after the Ministerial Conference at Doha in 2001, - participation at the process of adherence to WTO of other states, in special of the Russian Federation and Ukraine, which are trade partners of the Republic of Moldova. The acceptance for Russian Federation and Ukraine adherence to WTO was signed. At the same time, the additional protocol to the Agreement of 29^th of May 2001 was signed between the Republic of Moldova and the Government of Russian Federation on the levy of indirect taxes in reciprocal trade. Also it is to be mentioned that the draft country report was developed, that describes the trade policy of the Republic of Moldova, to be presented to WTO secretariat.

MoET

2.Successful implementation of the WTO obligations (including the TRIPs agreement) and PCA obligations

The activity regarding the implementation of the obligations undertaken with WTO was from the beginning oriented to the request of extending the terms of implementation of the obligations undertaken with WTO from the moment the Republic of Moldova became a member of WTO. In this context, to the diplomatic mission of the Republic of Moldova to Geneva, was sent a notification by which the Republic of Moldova is reserving the right to modify the obligations undertaken at the moment of signing the WTO Agreement for a period of three years starting 1st of May 2006, implying as base the provisions of the art.XXVIII:5 of GATT – the General Agreement on Tariffs and Trade of 1994. It is to be mentioned that the subjects and obligations agreed with WTO, constitute the direction lines for formulation of trade policies of each country and specifies the modalities of liberalisation of trade as well as the priority activities for negotiation, namely: agriculture, access to market of a non agricultural products; services and measures for trade facilitation.

AGEPI MoET

3. Gradual removal of licensing requirements which are not in conformity with Moldova’s WTO and PCA obligations and transparent management thereof

At the present moment Moldova is applying in a transparent way the system of licensing the external trade transactions. Are subject to licensing the import and export of certain products for the scope of consumer protection and adjustment to the internal standards, as well as for security reasons and health protection.

Camera de Licenţiere MoET

4. Efforts to increase transparency of application of regulatory measures

All the legislative and normative acts that regulate the exterior trade activity are published in the Monitorul Oficial of the Republic of Moldova. The notification related to measures applied in trade area are developed and sent, regularly, to the WTO secretariat.

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Promote Moldova’s exports capacity and diversification of export products

1. Promotion of Sectoral groups of producers for joint action for promotion of Exports on foreign markets, as foreseen in MEPO’s programme

The Strategy for investments attraction and export promotion was developed for 2006 – 2015, based on a complete new vision of socio-economic development of the country, for a coherent policy framework on investment attraction, that have as base the liberal approach and fulfilment of the structural reforms. For the promotion of the local products on the foreign markets and support the undertakings to participate at international exhibitions, during the VI edition of the National Exhibition „Made in Moldova”, on 7th of February 2007, a round table was organised with the topic „New approaches of state investment policies in the context of the Strategy for investment attraction and exports promotion for the years 2006 – 2015”. At the same time, with the objective of promoting local product on foreign markets, with the support of Chamber of Commerce and Industry and Moldovan Investment and Export Promotion Organization (MIEPO), economic agents participated to the following international exhibitions: “Green Week” – Germany, Berlin, 19^th of January 2007- 10 local enterprises participate from the food and wine industries; “Pro Wein” – Germany, Dusseldorf , 15^th March 2007 – 7 local enterprises participated; „Prodexpo“ – Russian Federation, Moscow , on 12^th February 2007 – 14 undertakings participated that presented their products, inclusively wines and alcohol drinks, cafeteria products, fruit cans, meat and other. “FruitLogistica” – Germany, Berlin, 7^th of February 2007 - 5 participants; “Biofach” – Germany, Berlin, 15^th of February 2007- 2 participants; “Modeexpo” – Romania, Bucureşti, 15^th of March 2007. MIEPO regularly organises economic missions and of country image promotion, business bilateral forums, during these events the Moldova’s export potential was promoted, as well as certain products with a high degree of competitiveness: Economic Mission of promoting country’s image „Moldova Presents”, 13-15^th of May 2007, Sofia, Bulgaria; Economic Mission of promoting country’s image „Moldova Presents”, 25^th of June 2007, Hague, Holland; The Moldo-Italian forum „The Agro-industrial sector: Opportunities for Business and Investments”, 18-19^th of April 2007, Chişinău; The Moldo-Chinese business men forum, 20-21 April 2007 la Shanghai, China. Moldo-Slovac forum of business men – 20-21 of June 2007, Slovakia.

OPEM MoET

2. Ensure effective control of the origin of goods in order to be able to fully benefit from the Generalised System of Preferences

Fulfilled For the ensuring of the origin control in order to benefit from the GSP Plus, the following actions were undertaken: There was elaborated Informational System SICOM of electronic evidence of certificates of origin (Form A), which was distributed to the customs offices beginning with 30.06.2006; Beginning with 01.01.2007 started the implementation of the informational system “Specimen” of electronic evidence of all the specimens of signatures and stamps that are used at the validation of the certificates of origin by other states; The Customs Service order no.4-O of 03.01.2007 was issued, on planning of the audit activities of all the enterprises during the year of 2007, that have requested certificates for origin of goods of the form A (inclusively from the transdnistrian region). According to the issued order all the enterprises that requested a certificate of origin were audited according to the action plan, On 23.01.2007 an evaluation and monitoring mission of the EC Commission was organised at the Customs Service of the Republic of Moldova, in the area of certification and control of origin of goods. The objective of the mission to evaluate the capacities of the Customs Service to perform strict and efficient controls of the origin of goods that are exported to EU this constituting an essential premise for granting in 2007 to Moldova the ATPs. On 08.06.2007 during the visit of evaluation and monitoring of the experts of EC Commission to the Customs Service with the objective to evaluate the process of creation of the ATPs for the Republic of Moldova, the European experts stated that the Customs Service advanced in its preparations and is ready from the point of administrative capacities to control the origin of goods and to implement the Autonomous Trade Preferences (ATPs). Was performed the integration of the informational system „SICOM” and „SPECIMEN” into the IS „ASYCUDA World”; With the objective to disseminate the information concerning new system of certification of origin of goods, there were organised a number of round tables with the participation of economic agents (including transnistrian region)

CS

3. Improve institutional framework and procedures on control of origin by reinforcing customs and reviewing the division of responsibilities for the issuing and verification of both preferential and non-preferential certificates of origin with the Chamber of Commerce in order to build a solid basis for possible Autonomous Trade Preferences.

Completed: Undertaken measures: Approval of the Action Plan concerning transfer of competences of certification of origin of goods from the Chamber of Commerce and Industry to the Customs Service (Government Decision nr 909 of 26.08.2006); Adoption of amendments and modifications to the Govenrment Decision nr 547 of 7 June 2005 “Concerning approval of structure and regulation of Customs Service”. There was created Division of Origin of Goods within the central apparatus of Customs Service(Government Decision 482 of 10.05.2006) With the assistance of MFAEI, were sent to the EC Commission, application for requesting assistance through the TAIEX instrument, for organising trainings , during February – January 2007, for the customs officers in the field of inspection logistics of the undertakings that requested certificates of origin in Form A; In cooperation with the EU experts, was accomplished the planning of training of the Customs Service staff on “origin of goods” in the framework of the EC Project “Border Management – Simplification and approximation of the customs procedures in the Republic of Moldova”; In collaboration with the European experts continued the development of internal acts that regulated the procedures of issuing by the Customs Service of EUR.1 certificates of circulation, according to the CEFTA Agreement, signed in Bucuresti on 19^th of December 2006. In collaboration with the experts from the TACIS Project “Border Management – simplification and approximation of the customs procedures in the Republic of Moldova” was organised the planning of the actions for preparing the a study visit to the Customs Department of Leetonia, for 4 officers that are responsible of the certification and control of origin of goods, with the objective of change of experience in the area with the officers from Leetonia; Competences of issuing of certificates of origin EUR.1 were transferred from the Chamber of Trade and Industry to the Customs Service There was launched the procedures of transferring competences of issuing of certificates of origin CT1. In order to ensure the continue training and improvement of administrative capacities of the customs officers, a series of seminars in the field of origin of goods was organised, with the participation of the Romanian Expert M. Figuras, that took place on 25 -29.06.2007, in the Central Apparatus from Customs Service 2 customs offices participated in the seminar “Rules of origin of goods” held in Belgrad (Serbia) on 23-24 July 2007. This seminar was organised under auspices of Directorate General for Enlargment of the EU Commission.

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Customs

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Implementation of customs legislation aligned with international and EU standards

1. Implement provisions of the Customs Code as well as provisions on customs control of precursors, counterfeit and pirated goods, dual use goods, and cultural goods.

Completed: The draft law on amending and complementing the Customs Code and the law on customs tariff (the actual draft has the objective the organisation of the functioning at the Mold-Romania border of duty free shops that will sell autochthon products) was sent to the Parliament for adoption; The draft law on amending and complementing the Customs Code on ratification, amendments and customs declaration cancellation was sent to the line ministries for review; The draft law for amending and complementing the legislation in force, with the objective of adherence of the Republic of Moldova to the Convention on temporary admittance, adopted in Istanbul on 26 June 1990 was sent to the line ministries for review; The draft regulation on the method of custom of cultural values. Due to the nature of complexity of this regulation the draft regulation was sent to the Ministry of Culture and Tourism for review, and later on to evaluate the possibility of common adoption. The draft law on the amendment and complementing the Customs Code on the protection of intellectual property rights was sent to the Government for review and adoption; Continuously, based on the reports of the responsible units for intellectual property rights protection are created and inserted into the IS “Asycuda World” criteria for selectivity that refer to security at the border; Continuously is being updated the electronic register of intellectual property objects at the border by the Customs Service of the Republic of Moldova.

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2. Moldova to adopt and keep up to date the HS in use, with a view to adopting the CN

Starting with 1^st of January 2006, for the Republic of Moldova entered into force International Convention concerning Harmonised System of Description and Codification of Goods (signed on 14^th og June 1983 in Bruxelles). Classified Nomenclator (CN) was elaborated by the Ministry of Economy and Trade and approximated to the amendments made by World Customs Organisation to the International Approximated System of codification and classification of goods. In octomber 2007, CN was sent to the government for approval, its implementation being scheduled for the beginning of 2008.

MET

3. Implement the principle of risk based customs control and set the necessary organisational framework

Completed. Concept concerning the system of riscs management in the Customs Service was adopted by Government Decision nr 1144 of 3.11.2005. It aims at ensuring adequate customs control according to the selectivity principle. By the Customs Service Order no.148-O of 14.04.2006, starting with 17.04.2006 the process of insertion of the risk criteria in the selectivity module of the ASYCUDA WORLD. Starting 25.04.2006 the customs clearing of goods is made on the principle of selectivity control. By the order no.228-O of 22.06.2006, the Instructions on selectivity of cargos was approved and starting 23.06.2006 the Customs Service passed to the process of customs clearing o goods with the use of the selectivity system of cargos, in this way directing the inflow of customs declaration by colours “red”, “yellow” and “green”. The system of analysis and management of the risks is in continuous development, specially regarding the optimisation the per cent rate of the directed customs declaration to the “red” colour; analysis of the unconformities identified as result of hypothetical checks on the “yellow” and “red” colours and establishing the corresponding criteria that would eliminate the respective unconformities. 13 selectivity criteria were created that deal with a significant number of customs declarations of import/export, fact that will allow reducing the hypothetical rate of selection of customs declarations on the “red” colour. 4 criteria that deal with the severing of controls of import/export of coverage goods were created. In collaboration with “Philip Morris Moldova” was developed the draft memoranda of understanding that foresees the cooperation between the NIS countries and the Republic of Moldova on fighting illegal traffic of cigarettes and its counterfeiting. 11 selectivity criteria on intellectual property, drugs and precursory, were created. In order to fight the illegal traffic of goods by the air ways, the Customs Service develops the draft memoranda of understanding that foresees the cooperation between Customs Service and International Airport of Moldova. Identification of the types of goods of coverage is made by inserting the data regarding the goods of vulnerable goods. As a follow up, the respective goods are physically checked for identification of the potential areas of risks that are related to the covering goods.

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Improve functioning of customs service; simplify and modernise customs procedures at borders and inland

1. Strengthen the overall administrative capacity, in particular to ensure effective control of the origin of goods and the correct implementation of customs valuation rules, and provide the customs administration with sufficient internal or external laboratory expertise as well as sufficient operational capacity in the IT area

The cooperation with the EU mission of Assistance at the Ukraine Border (EUBAM) continues, at central as well as at territorial level. By the Customs Service order no.5-O of 05.01.2007 within the Central Apparatus of the Customs Service and working group of officers that collaborate with EUBAM was created. The Customs Service continues to implement the Action plan of the Customs Service of 07.09.2006 on the realisation of the EUBAM recommendations. It was sent to the EUBAM mission the technical specifications of the required equipment for establishing a link between the customs services of the Republic of Moldova and Ukraine, with the purpose of information exchange on goods and transport means that are crossing the Republic of Moldova and Ukraine border. Training courses were organised, in the field of information technologies, in the customs bureaus. Attestation of the customs officers from Cahul customs service on the value of the goods in the customs. Important functional updates for made in order to improve the Information System ASYCUDA, such as: Implementation of the new version of IS Asycuda World; Automatic distribution by the system of the customs declarations to the users; Interconnection of the modules „Asycuda World” and the „Economist”. Three scanning machines were purchased for the physic controls of the goods. At the present moment the machines are being installed at the bureau of Ungheni -1 and International Airport bureau – 2. The minimum prices for reference were modified for the goods classified on the tariff positions of 07 and 08 of the Goods Classifier of the Republic of Moldova. The order no. 68-O of the Customs Service of 27.02.2007 was issued on the implementation of the new modules and development of the informational system ASYCUDA World. The action plan on the adjustment of the national legislation to the provision of the Convention on the common transit regime, as well as operating the amendments in the informational system in order to be adjusted to NCTS. Through the SECI six applications were addressed for assistance in the field of customs for the checks of authenticity of data regarding the value in the customs.

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2. Develop a single window approach for all international trade related documentation and control starting by increased co-operation between customs services and other agencies working at the border (e.g., State Border Guards, Police, and Veterinary Service).

By the Customs Service order no.131-O of 23.04.2007 the concept of the “one shop stop” was approved for the border passing and customs clearance of goods. The principle of “one shop stop” is treated as a component of the integral system of management of the state border. This fact means the reform of the actual services and of the agencies of controls in the border areas, their efficient collaboration and simplification of the passing procedures. The commission formed within the Customs Service will identify and suggest specific measures for the legal and technical implementation of the concept. At the moment the draft Government Decison, on the implementation of the “one shop stop” concept for goods passing through the state border from external economic transactions, is being elaborated. For the improvement of the cooperation between the Customs bodies and other agencies that operate at the border, is intended to launch some activities of amending of the national legislation, in order to adhere to the International Convention regarding the approximation of controls of goods at the border, signed in Geneva at 21^st of October 1982.

CS

3. Set up a Mechanism to ensure regular consultation/ information of the trade community on import and export regulations and procedures.

Actions performed: The Customs is continuously updating the information regarding the customs regime on the web site www.customs.md. Information materials are published in the “Customs Currier” Round tables are being organised together with representatives of the business community for debating and solving specific issues related to customs activities.

CS

4. Adopt and implement a Customs Ethics Policy based on internationally recognised standards (Arusha Declaration).

Completed. Fulfilled in 2005 ( Customs Service order no.334-C of 18th of March 2005, by which the cod of ethics and conduit of customs officers was approved, that is completely compatible with the Arushka Declaration of the World Customs Organisation. The code is published at all the services and bodies in clearly visible spots. The implementation level of the codes is continuously monitored). By the order of the General Director of the Customs Service no.110-O of 02.04.07 the regulation, on the control of the entitled and candidates to public functions in the Customs bodies, was adopted. This regulation is the starting point for improving the procedures and techniques of checks of the staff regarding the obedience to the Code of ethics and conduction. By the order of the General Director of the Customs Service no.755-p from 28.06.2007 the regulation of the Commission of ethics was approved. The objective of this Commission is to monitor, examine, evidence and, by case, to check the correctness of investigations made on the customs staff that committed acts that violated the Code of Ethics. By the order of the General Director of the Customs Service no.754 of 28.06.2007 the regulation on the conditions of the contest for hiring staff in the Customs Service was adopted, that has the objective to organise the hiring process through a contest of the new persons in the Customs Service of the Republic of Moldova. The draft order of the Customs Service of the Republic of Moldova was approved on the adoption of the Regulation on the method of attestation of the staff of the customs services.

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5. Develop EU-Moldova co-operation with regard to risk based customs control, including safety and security of goods imported, exported or in transit.

Project of the EU “reform and modernization of Customs Administration of the Republic of Moldova” (being implemented in the period April - November 2005) as well as the Consulting Company from Great Britain “ Charles Kendall” gave the Customs Service of the RM the benefit of its experience in the field of customs control based on the analyses and riscs management. A close collaboration continues with the EUBAM mission at the Ukraine’s border, especially in the fields of risks analysis and management. A consultant in the field of the risks analysis of EUBAM is permanently deployed in the Customs Service. Monthly 2 special compartments are being done in the common monthly reports about the results of protection of the moldo-ukranian border. It was requested to EUBAM mission to censure the some common meetings with the representatives of the risks management section from the Ukraine, and at the same time to establish direct contacts with the analytical structures from Great Britain and other in the EU in order to ensure mutual efficient assistance on different security problems. In order to establish some flexible ways of determination of potential violations of the customs legislation, on 26.01.2007 a working session with the EUBAM representatives was held together with the section for analysis and management of risks from the Central Apparatus of the Customs Service with the topic “Application of the Analytical Soft – i2”.

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Standards, technical regulations and conformity assessment procedures (EU harmonised areas)

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Move toward EU and international legislative and administrative practices for standards, technical regulations and conformity assessment

1. Jointly identify priority industrial sectors for legislative approximation (with the possibility to be included in an Agreement on Conformity Assessment and the Acceptance of Industrial Products, ACAA, provided that all the required conditions are accepted and fulfilled) including through consultations with producers and exporters. Continue the revision of existing Moldovan standards, removing the mandatory elements and harmonising them with international and European standards.

The priority industrial sectors were identified by the National Competent Authorities and approved by the Government Decisions: Industry Development Strategy until 2015, approved GD no.1149 from 05.10.2006 Agroindustrial Development Strategy 2006-2015, approved GD no.1199 from 17.10.2006 Energy Strategy of the Republic of Moldova until 2020, approved GD no. 958 from 21.08.2007 Also, identify priority industrial sectors for legislative approximation was realized by approbation of Government Decision nr. 873 from 30.07.2004 on approbation of National Programme of Elaboration of Technical regulations, which includes 105 technical regulations, with indication of Directives and EU Regulations in the base of which was or needs to be harmonized.