RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/97
17 April 2001
(01-1937)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Access to the Commodity Market of Ukraine:
Non-Tariff Import Regime
The Governmental Commission on Ukraine's Accession has submitted the following
information with the request that it be circulated to members of the Working Party.
_______________
Overview
This note addresses the concern that further progress in the tariff negotiations would remain
difficult until Members had a clearer picture of the non-tariff measures currently in place.
The subject of non-tariff measures has appeared in four recent submissions by Ukraine to the
Working Party.
The "Memorandum on the Import Regime in Ukraine" (WT/ACC/UKR/63 dated
23 July 1999) described the Special Import Procedures that apply to some imported products
(pages 5-8).  As part of that description it was stated that import quotas existed with respect to five
imported products: raw sunflower oil; raw soya oil; palm oil and fractions thereof; sugar cane; and
champagne and cognac raw materials.
Ukraine informs the Working Party that these import quotas have been abolished and that no
import quotas presently exist in Ukraine.
WT/ACC/UKR/63 also described the import licensing regime in Ukraine.  It did not,
however, distinguish between automatic licensing a nd licensing to support the import quotas that were
then in force.
The informal paper "Accession of Ukraine: Information to the Seventh Meeting of the
Working Party" (12 July 2000; Job number 4310) also dealt with non-tariff measures.  It reported onactivities to abolish the authority of the Cabinet of Ministers to apply annual quotas on products of
animal origin. Ukraine informs the Working Party th at no such quotas presently exist.  The draft law
"On the Amendment of the Law on State Regulation of Import of Agricultural Produce" abolishes the
authority of the Cabinet of Ministers to apply annual quotas.  The draft law was submitted to the
Supreme Rada in early 2000.  After initial examination it is being revised for further consideration bythe Supreme Rada.  It is expected to be passed by October 2001.
The informal paper also dealt with import licensing procedures in the year 2000, but did not
indicate clearly that such licensing was automatic, which it was.  Import licensing in 2000 was also
dealt with in the document  "Law Enforcement in High-Priority Areas of Trade-Related Framework"
(WT/ACC/UKR/89 dated 4 December 2000).  This presentation did not clarify sufficiently the factWT/ACC/UKR/97
Page 2
that there were no quotas on imports. (There were none.)  It did not characterize Ukraine’s licensing
regime as being automatic.
Finally, the tariff offer submitted by Ukrain e in April 2000 contained a column with the
heading "Non-tariff Measures".  The measures enum erated in the column are: SPS; minimum prices;
licensing; excise taxes; certification.
With regard to SPS and TBT, Ukraine is working to bring its regimes into full conformity
with the relevant WTO Agreements.  It understands that its progress in this regard will be examined
by the Working Party throughout the process of accession, and has submitted to members of the
Working Party draft legislation in this area.
With regard to minimum prices for customs valuation purposes, Ukraine informs the Working
Party that the system of minimum prices has b een abolished.  The draft Customs Code, which fully
implements the Customs Valuation Agreement, (in particular Article VII) will proscribe by law such asystem.
With regard to excise taxes, the draft Tax Code eliminates all practices that do not conform to
the principle of national treatment.
As may be seen from the above, the only non-tariff measure presently in force in Ukraine is a
system of automatic licensing.  The section below describes that system as applied in 2001.
Ukraine’s system of automatic import licenses
Ukrainian legislation does not stipulate any limitations on importing products, and import
licensing procedures are considered to be only a means of monitoring certain types of imports.
Import licensing is an administrative procedure in Ukraine, which is used to introduce a
monitoring regime for importing certain types of products, and which requires submission of a requestor other documents to the corresponding administrative body, as a preliminary condition for importing
into the customs territory of Ukraine.  The documents mentioned are not required for customs
purposes.
Administrative procedures, undertaken while licensing imported products do not run counter
to the corresponding GATT 1994 provisions, and have no influence on the trade that can emerge dueto improper performance of these procedures.
Rules for submitting requests for licenses, incl uding the right of individuals, companies and
institutions to submit such requests, names of administrative bodies to which requests are to be
submitted, as well as a list of products subject to licensing, are published in the official edition
"Uriadovy Courier" every year, and are also available on the Internet.  Exclusion, denial or change of
the rules of imported products licensing or of the list of products, importation of which is subjected to
licensing, are published in the same way.
According to the existing procedure, no request can be denied due to minor mistakes in
documentation, if they do not change basic data contained in the request.  Approval of a request for
obtaining the license takes place in all cases that correspond to the provisions of paragraph 2(a) of the
Agreement on Import Licensing Procedures.
Taking into account the absence of quantitative limits on imports, and estimating the present
licensing regime, the conclusion can be made that the import licensing regime in Ukraine is
automatic.WT/ACC/UKR/97
Page 3
Licensing procedures in Ukraine are carried out in the way to avoid a limiting influence upon
goods, importing of which is subject to automatic licensing, that is:
- any individual, company or institution, en gaged in importing products has the right to
apply for the license and obtain it;
- requests for licenses can be submitted on any working day before products’ customs
clearance takes place; and
- requests for licenses – if filled in fully and properly – are approved immediately
within administrative capacities on their receipt, and not later than within 10 working
days after receipt.
Resolution No. 1911 of the Cabinet of Ministers of Ukraine dated 28 December 2000
establishes the list of products, exporting and importing of which is subject to quotas and licensing in
2001 by the licensing body, which is the Ministry of Economy.  Resolution No. 1911 did not establishany quotas on imports.
In accordance with Supplement 2 to Resolution No. 1911 of the Cabinet of Ministers of
Ukraine the following items are included in the list of products, importing of which is subject to
licensing in 2001:
1. Plant protection and growth regulation chemicals; insecticides and rodenticides (38.08 – except
for certain lots, imported free of charge by authority of the Ministry of Ecological Resources
exclusively for state testing, scientific research and demo experiments).
- Licenses for importing plant protection and growth regulation chemicals are issued
after approval by the Head of the State Inspection for Plant Protection of the Ministry
of Agricultural Policy; and
- Licenses for insecticides and rodenticides are issued after approval by the Ministry of
Ecological Resources.
2. Cosmetic and hygienic chemicals (33.02 - 34.02, except for aroma substances for food industry
and production of drinks coded 33.02 10000, sauces and flavorings for production of cigarettes
and smoking tobacco coded 33.02 90000, emulsifier coded 34.02 11000 and foam stabilizers,used for production of foamed polyurethane coded 34.02 13000, 34.02 90100).
- Licenses for the above-mentioned products are issued after approval by the Ministry
of Health Protection; and also by the Ministry of Ecological Resources for cosmetic
and hygienic substances in aerosol packing; licenses for surface-active substances,
used in agriculture along with pesticides, are issued also on approval by the Main
State Inspection for Plant Protection of the Ministry of Agricultural Policy; and
- No licenses are required for importing products, coded 34.02 11000 and 34.02 13000,
which imports are undertaken by the Mint and the Banknote Paper Factory of the
National Bank for their own needs.
3. Veterinary chemicals (30.02 31000 - 30.02 90900)
- Licenses are issued after approval by the State Department of Veterinary Medicine.
4. Tariff line (85.24) only as regards matrixes and moulds for phonogram production.
- Licenses are issued after approval by the Ministry of Science and Education.WT/ACC/UKR/97
Page 4
5. Uncancelled stamps, state duty stamps or similar stamps of current or new production in the
country for which they are destined, stamp paper, check-books, banknotes, bonds, and other
similar securities  (49 07 00100, 49 07 00300, 49 07 00910, 49 07 00990)
- Licenses are issued after approval by the National Bank of Ukraine.
Import Licensing Procedure in 2001
Import licensing procedure in 2001 is stipulated by Order No. 39 of the Ministry of Economy
dated 19 February 2001 which establishes the order of licensing of imported products in 2001 in
accordance with article 16 of the Law of Ukraine "On Foreign Economic Activity" and related to
implementation of Resolution No. 1911 of the Cabinet of Ministers of Ukraine dated
28 December 2000 "On Lists of Products, Exporting and Importing of Which is Subject to Quotas and
Licensing in 2001".
Provision on the order of import licensing in 2001 (hereafter the Provision) stipulates a single
order of licensing imported products regardless of the types of foreign economic agreements (sales,
production and technical cooperation and science and technical ties, frontier and near-shore trade,
exchange and consignment agreements, as well as barter operations, etc.).
The power of the provision is extended upon all the subjects of entrepreneur activity of
Ukraine regardless of the form of ownership, and the place of registration.  If an internationalagreement of which Ukraine is a party stipulates rules not foreseen by this Provision, the international
agreement’s rules shall prevail.
Issuing importing licenses to subjects of entrepreneur activity, registered on the Ukrainian
territory regardless of the form of ownership is carried out by the Ministry of Economy of Ukraine, or
– within given authorities – by the Ministry of Economy of the Autonomous Republic of Crimea,corresponding department of the oblast, Kiev  and Sevastopol city state administrations.
Licenses are issued according to the order, foreseen by article 16 of the Law of Ukraine "On
Foreign Economic Activity", and according to the present Provision.
To obtain the license, the following documents shall be submitted:
- properly legalized request for the license (see Supplement 1);
- written address regarding legalization of the license with guaranteed payment of state
fee for the legalization;
- copy of the agreement, all supplements and corresponding specifications, certified by
the manager of the subject of entrepreneur activity;
- copy of the certificate of state registration, certified by the manager of the subject of
entrepreneur activity; and
- act of product examination, issued by the Chamber of Commerce and Trade of
Ukraine or its regional department, with specification of product’s code according to
the norms of foreign economic activity.
Day of request submission is considered to be the day, when it is registered in the Ministry of
Economy, which is confirmed by the corresponding note in the registration book.
License is issued for the term, stipulated by the agreement and is valid for customs clearance
of products during this period, but no later than 31 December 2001.WT/ACC/UKR/97
Page 5
License is issued if the document, certifying the fact of payment of state fee for license
issuing in the amount, determined by the Cabinet of Ministers of Ukraine.
Licenses cannot be handed to other persons, and are issued in one copy.
Decision on issuing (or denial of issuing) of the license is made no later than 15 working days
beginning from the date of registration of the request by the Ministry of Economy of Ukraine, or theMinistry of Economy of the Autonomous Republic  of Crimea, corresponding department of the
oblast, Kiev and Sevastopol city state administration.
Decision on denial to issue the license can be made if:
- there is some non-correspondence in the submitted documents to the current
legislation;
- special sanctions are imposed on the subject of entrepreneur activity or its foreign
contractors as an individual licensing regime, or suspension of foreign economicactivity in compliance with article 37 of the Law of Ukraine “On Foreign Economic
Activity”; and
- the subject of entrepreneur activity or its foreign contractor violated the Ukrainian
legislation related to foreign economic activity.
Decision of the Ministry of Economy of Ukraine can be appealed by the subject of
entrepreneur activity in the court of law.
Thus, import licensing in Ukraine is an administrative procedure, which by the number of
requirements corresponds to the automatic licensing regime, and does not make any technical barriers
in trade.WT/ACC/UKR/97
Page 6
Supplement 1
Request for export/import licensing №____________________
Valid till __.__.__ (including)
1.Requesting organization, location                            Code
Phone                                                Fax
Current account
Current account in foreign currency
2.ID number                                    Registration date
3.Product consumer, location 4.Seller, location
5.FEA Code 6.Meas.
units7.Quantity 8.Value
(thsnd USD)9.Value
   (curren. agr.)10.Additional
item
11.Country of destination12.Country of seller13.Country of origin14.Basis of supply
15.Currency of agreement16.Currency of payment
17.Customs 18.Character of agreement
19.Reason to request the license 20.Aprroved
Full name
Position
Signature
Seal                                    Date
21. Full name of the general manager of the requesting organizationPosition
                     Seal                                         Signature                                 Date
22.Special terms
__________