L/1014/Add.28. December 1960 GENERAL AGREEMENT ON TARIFFS AND TRADE. (a) Tobacco, unmanufactured and manufactured (under the authority of the.

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1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED L/1014/Add.28 1 December 1960 Limited Distribution Original: French STATE-TRADINGENTERPRISE Notifications Received Pursuant to Article XVII:4(a) of the General Agreement in Reply to the New Questionnaire Contained in Document L/1014 I T A L Y I. Enumeration of State-trading enterprises 1.Bananamonopoly (Azienda Monopolio Banana) (The banana monopoly has been in existence since 1 January Royal Legislature Decree No of 2 December 1935 and amendment.) 2. wheat and wheatenflour (Compulsory collection of wheat) 3. Fiscal monopolies (a) Tobacco, unmanufactured and manufactured (under the authority of the Autonomous Administration of State Monopolies). (b) Cigarette paper (under the authority of the Autonomous Adminitration of State Monopolies) (c) Lighters and lighter flints (flints come under the Autonomous Administration of State Monopolies; lighters come under the Consortium of the Match Industry). (d) Matches (come under the Consortium of the Match Industry). 4.Monopolies established for social, and in part for fiscal, reasons (a) Salt (under the authority of the Administration of State Monopolies). (b) Quinine (under the authority of the Administration of State Monopolies). For the alphabetical list of the notifications received from governments, Appendix to this document. see

2 Page 2: II Reason for and enterprises 1. Bananas purpose of introducing and maintainingstate-trading The object of maintaining this monopoly is to protect the producers in Somalia. 2. Wheat and wheaten flour The compulsary collection, the purpose of which was to influeencethe price level, has been appreciably reduced during the past few years: to be excact, to 12 million quintals, which amounts to one eighth of the average total production. The price is fixed by the Inter- Ministerial Price Committee at a level which declines from year to year, the object being to reduce the wheat-growingarea and to bring the price more into line with that ruling on the world market. The price varies according to the area of production and is higher in the southern and island areas where productivity is lower and social problems more acute. For further details, see document COM.II/43, pages II Fiscal monopolies The following monopolies: (a) (b) (c) (d) tobacco, cigarette paper, lighters and lighter flints, matches are maintained solely for fiscal reasons. 4. Monopolies established for social. and in part fiscal. reasons (a) (b) Salt The salt monopoly was established for fiscal and social reasons. Its purpose is to guarantee the quality of the product and to ensure uniformity of prices in the territory of the State, in spite of the disparity in transport costs. Qunine The quinine monopoly, is exclusively social in character. It was instituted for reasons of public health in connexion with the campaign against malaria.

3 Page 3 III. Functioning of the State-trading enterprises 1. Bananas The banana monopoly affects imports only. Private dealers are not authorized to import bananas. The volume of imports is determined by the demand in the domestic market. The domestic wholesale trade is carried on by private concessionaires. No restrictions are placed on retail trade. Wholesale, retail and consumer prices are fixed by the State by means of ministerial decrees (Ministries of Finance and Industry and Commerce). Prices may be lower, depending on the condition of the goods and the state of the domestic market. 2. Wheat and wheaten flour For a description of the functioning of State trading in wheat see Section II above. 3. Fiscal monopolies (a) Tobacco, unmanufactured and manufactured. The monopoly of unmanufactured and manufactured tobacco is governed by Act No. 907 of 17 July The monopoly is concerned with the following: (a) Tobacco growing - tobacco is grown by private concessionaires. (b) Manufacture of tobacco - this is handled directly by the Autonomous Administration of State Monopolies. (c) Distribution of tobacco-base products - the wholesale trade is carried on directly by the Administration or by private concessionaires. The retail trade is carried on by private dealers, who are licensed and supervised by the Administration. (Re-sale of monopoly goods). (d) imports and exports - tobacco, unmanufactured and manufactured. is imported exclusively by the Administration. Exports are handled by the Administration or by authorized private concessionaires, Manufactured tobacco is exported exclusively by the Administration. In order to avoid discrimination against home-produced tobacco, the selling prices of imported manufactured tobacco are computed, pursuant to Act No of 19 February 1958 and Presidential Decree No.167 of 18 April 1959, by dividing the price into four parts: one part for the supplier, one for the Monopolies administration to cover distribution and sales costs, one for the retailer and one for the State as a revenue tax. On this basis, the foreign supplier can calculate in advance the re-sale prices of his product.

4 Page 4 The foreign (manufactured) product is also subject to Customs duty. The Monopolies Administration does not negotiate long-term contracts for the import or export of unmanufactured or manufactured tobacco. (b) Cigarette paper. The cigarette paper monopoly is governed by Act No. 70 of 13 January The paper is manufactured by a company of licensed manufacturers, and sales are handled by the Monopolies Administration. Imports and exports of cigarette paper come under the Monopolies Administration. Private persons coming from abroad may not import more than 2,000 units of cigarette paper. Exports by private dealers are subject to a licence granted by the Monopolies Administration. Consumer prices are fixed on the same basis as manufactured tobacco. in the case of (c) Lighters and lighter flints. The lighter and lighter flint monopolies are governed by Act No. 105 of 26 February That of lighter flints comes under the Autonomous Administration of State Monopolies and that of lighters under the Consortium of the Match Industry. These monopolies are concerned solely with the commercial aspect and are fiscal in character. At present there is no production of lighter flints in Italy. The production of lighters is carried out exclusively by the Consortium of the Match Industry. Lighters operated by substances other than lighter flints may be manufactured by private films licensed by the Monopolies Administration. Lighter flints are sold exclusively through re-sales of monopoly goods; the sale of lighters is unrestricted. Imports and exports of lighters operated by lighter flints (which are a substitute for matches) come under the Consortium of the Match Industry. Imports of lighter flints come under the Monopolies Administration. The import and export of lighters which are not operated by lighter flints are subject to a licence granted by the Monopolies Administration.

5 L/1014/Add.28 Page 5 (d) Matches. The match monopoly is a delegated monopoly of a fiscal character. It is governed by Ministerial Decree No. 560 of 11 March The manufacture and sale of matches throughout the national territory are carried on by the said Consortium. The import trade is reserved to the Monopolies Administration. The export trade is in the hands of the Consortium of the Match Industry. 4. Monopolies established for social, and in part fiscal, reasons (a) Salt. The salt monopoly is governed by Act No. 907 of 17 July For historical, economic and social reasons, Sicily, Sardinia, Livigno and Campione d'italia are not included in the monopoly., The purpose is to guarantee the quality of the product and to ensure uniformity of prices in the territory of the State in spite of the disparity in transport costs. is carried out directly by the Autonomous Administration of State Monopolies, or by private producers in exceptional cases where special salts or salts intended for industrial uses are involved. Sales: The wholesale trade is carried on directly by the Monopolies Administration or by private concessionaires. The retail trade is carried on by means of re-sales organized by private dealers under the supervision of the monopoly. The import and export trade in salt for human consumption is carried on by the Monopolies Administration. Private dealers licensed by the Administration may import common salt for industrial needs from Sicily and Sardinia. In that case, monopoly dues, fixed by Presidential decree are charged. Licensed private dealers may export, an annual charge. Selling prices are fixed on the same basis to manufactured tobacco. subject to the payment of as that applicable

6 Page 6 IV. (b) Quinine. The quinine monopoly is governed by legislative Decree No.736 of 8 March 1934 and by Act No of 14 June By means of this monopoly, the State seeks to ensure the purity of quinine and to guarantee consumer prices which all social classes can afford. is carried out directly by the Monopolies Administration in the case of products for medical use and by private industry in the case of products intended for other uses. Sales are made by pharmacies or through re-sales of monopoly goods. Imports of cinchona bark, quinine salts and cinchona alkaloids are handled by the Monopolies Administration or by licensed private dealers upon payment of a special charge. A bill has been submitted in the Italian Parliament which provides for the abolition of the quinine monopoly. Statistical information See Annex. V. Reasons why no foreign trade has taken palce(if this is the case)in the products affected VI. Does not apply. Additional information None.

7 L/1014/Add.28 Page 7 ANMEX Statistical data 1. Bananas Imports No domestic production. 2. Wheat and wheaten flour quintals 421, , ,950 Year Imports Exports Quantities available for consumption as a percentage of the quantity available for consumption Grain (in thousands of quintals) ,510 7,090 2,170 80, ,829 2,588 75, ,000 7, , ,000 6, , ,000 5,338 6,312 85, ,000 1,741 4,342 95, Of which 9 to 10 million quintals are used for seed. 3. Fiscal monopolies (a) 'Tobaccos UNMANUFACTURED TOBACCO (in quintals) Imports Exports , , , , , , , , ,610

8 Page 8 MANUFACTURED TOBACCO (in quintals) Imports Exports 1956/57 520,314 8,302 2, /58 532,967 8,259 3, ,667 8,370 2,387 (b) Cigarette paper 1956/ /58 (in quintals) 1958/59 Imports Exports 1,884,424 1,817,794 1,701,233 (c) Lighters and lighter flints 1956/ /58 Imports (lighter flints) - (357(2.8 x 5) ( 50(2 x 5.5) ( 47(2.4 x 5) Exports Monopolies established for social, and in part fiscal, reasons (in kg.) 1958/59 (a) Salt 1956/ /58 (in quintals) 1958/59 Imports Exports 5,121,816 9,995 8,867 4,065, ,460 2,204 5,319, 523 1,300,393 2,295 Excluding tobacco derivatives. Made by private dealers.

9 Page 9 (b) Imports Exports Quinine 1956/ / (in quintals) 53.28

10 Page 10 APENDIX STATE-TRADING ENTERPRISES Notifications received from governments and reproduced in addenda to document L/1014: Australia... Austria... Belgium Brazil.... Cambodia... Canada... Ceylon... Czechoslovakia... Denmark... Finland... Germany, Fed. Rep. of.. Ghana... Greece... India... Add /Rev.l /Rev Israel... Italy... Japan.,... Luxemburg... Malaya, Federation of... Netherlands... New Zealand... Norway.. Rhodesia and Nyasaland, Federation of... Sweden... Turkey Union of South Africa United Kingdom... United States... Add & Corr