RESTRICTED
WORLD TRADE WT/L/20
3February 1995
ORGANIZATION
(95-0200)
Original: English
ACCESSION OFUKRAINE
Questions andReplies totheMemorandum on
Foreign Trade Regime (L/7499)
Inacommunication circulated asPC/W/30, theGovernment ofUkraine applied foraccession
totheWorld Trade Organization (WTO) pursuant toArticle XIIoftheAgreement Establishing the
WTO. Atitsmeeting on21December 1994, thePreparatory Committee agreed thattheexisting GATT
1947WorkingPartyexaminetheUkraine'sapplicationforaccessiontotheWTO.Thepresentdocument
setsforththequestions submitted byMembers inconnection withtheUkraine 'sforeign trade régime
andthereplies thereto provided bytheauthorities oftheUkraine. Anupdate ofdevelopments inthe
foreign trade ofUkraine appears onpages 146onwards.
II.Economy andForeign Trade
Question 1.
Please describe theState supports provided tostrategic areas oftheeconomy referred
tointhissection [Economy andForeign Trade -Main Directions]. Please listanyareas other
thanpower engineering, metallurgy, coal, andchemicals thatreceive thistypeofsupport.
Reply 1.
TheStatebudget ofUkraine approved for1994envisaged subsidies granted totheproduction
ofcoalandgas.Inconnection withtheimplementation oftheProgramme ofthePresident, measures
arebeing taken tocutsubsidies toenterprises andtothepopulation (liberalization ofretailandwholesale
prices), thereleased funds being directed tosocial protection ofpeople ofnomeans.
Theprogramme ofState supports forstrategic areas ofthenational economy andof
encouragementfortheexportofdomesticproductsisimplementedbyusingStatemeasuresforsupporting
production andexport rather thanthrough thegranting ofsubsidies. These Statemeasures willinclude
elimination ofcustoms tariffs andvalue-added taxonUkrainian exports; creating aunified currency
exchange rate.Also, setting lower income taxes fortheexport ofhigh-technology andhigh- quality
finished products thanthetaxesontheexport ofrawmaterials andintermediate goods willbeeffected.
Atthesame time, limited State funding isintended forbasic scientific research anddevelopment of
highleveltechnological products. And, inaddition, implementing marketing studies toencourage
theaccess ofUkrainian products inforeign markets.WT/L/20
Page2
Question 2.
Please elaborate onhowtheGovernment ofUkraine specifically intends toreduce the
negative trade balance tonomore than5percent ofGDP. How willthe"substantial cuts" in
non-critical imports beachieved?
Reply 2.
Thereduction ofthenegative trade balance willbefacilitated byliberalization oftheexport
ofgoods andservices andunification ofexchange rates. Theproblem willbeaddressed bythefollowing
twomethods: anoverall encouragement toexport (1994 exports were 1/3thelevelof1991) anda
temporary limitation onnon-essential imports.
Toreduce thenegative tradebalance byaconsiderable reduction innon-essential imports, the
Decree ofthePresident "OnMeasures toImplement anIntegrated StatePolicy ofImport Regulations,"
21September1994,createdaGovernmentalCommissiononproblemsofimportregulation.Theprimary
objectives ofthisCommittee arethepreparation ofproposals, theirimplementation andtheintroduction
ofmeasures related to:
- reduction ofthenegative trade balance andimprovement ofthebalance ofpayments;
- protection oftheinterests ofenterprises ofUkraine against unfair competition,
prevention ofsuchcompetition byenterprises, bothUkrainian andforeign, thatimport
goods andservices intoUkraine;
- reduction ofthevolume ofnon-essential imports, determination ofthelistofessential
imports andcreation offavourable conditions forthem aswell;
- elaboration ofamechanism forputting intopractice theuseofunilateral constraints
onimports incompliance withGATT/WTO Article XIXstandards andprinciples;
- compiling alistofnon-essential imports forparticular sectors ofthenational economy;
- identification ofgoods currently imported which could beproduced inUkraine and
preparation ofproposals onpreferential taxandcredit terms fordomestic producers
ofthese goods;
- developing amethod todefine whether thereisconformity ofprices forimported goods
andservices withthefairmarket priceestablished inthedomestic market; developing
amechanism during thetransition toamarket economy forstarting theuseoftariff
regulation inthecaseofunfair, overvalued prices.
Itwillbenecessary tomake optimum useofcurrency policy. Thisisaccomplished bythe
Decree ofthePresident of22September 1994, "OnPerfection ofCurrency Regulation" andby
implementing thePresidential Decree "OnMeasures toImplement aUnified Policy ofImport
Regulations" of21September 1994. Incompliance withthelatter, inpurchasing technological and
similar equipment tobeincorporated intothecapital ofthestate-owned enterprises andthe
products/services tobeimported attheexpense ofStatebudget, iftheseequipment, products andservices
costoverUS$100,000, thedeals aretoberealized onthebasis ofinternational norms ofcompetitive
bidding.WT/L/20
Page3
Question 3.
Please describe the"lease relations" between theState andother entities referred toin
thissection.
Reply 3.
Lease regulations inUkraine aregoverned bytheLawofUkraine "OnLeasing oftheProperty
ofState-Owned Enterprises andOrganizations" of10April 1992, No.2269-XII, LawofUkraine "On
Leasing oftheProperty ofState-Owned Enterprises andOrganizations" of10April 1992, No.2269-XII.
Incompliance withthislaw,leasing isaprerogative oftheFund oftheStateProperty inthecaseof
integrated property complexes, i.e.thosewithaportion ofownership belonging totheState, enterprises,
organizations andtheir structural branches thatmake uptheStateproperty; thebodies authorized
bytheSupreme Rada oftheRepublic ofCrimea andlocalRadas ofpeoples 'deputies toexercise
control overproperty owned byeither theRepublic ofCrimea orthelocal Radas; andstate-owned
enterprisesandorganizationsinthecaseofintegratedpropertycomplexeswhichcanleasetheirstructural
branches (subsidiaries, workshops).
Anyone canbealeaseholder. Theleaseholders canbeorganizations made upofmembers
ofworkcollectives ofastate-owned enterprise ororganization ortheirstructural branches. Leaseholders
canalsobecitizens andjuridical persons ofUkraine, foreign States andinternational organizations.
31/1/1995
Question 4.
Please elaborate ingreat detail regarding howUkraine willpromote thedevelopment and
international competitiveness ofitsindustries.
WillUkraine relyprimarily ongovernment supports andState aidsdesigned toassist
industry intechnology upgrades andtransfers andR&D, orwillitrelyprimarily onsupports
designed toincrease theprice competitiveness ofUkrainian producers?
WillUkraine 'sapproach varybyindustry orsector and,ifso,how?
How willUkraine 'spolicies toward nascent andestablished industries differ?
Incarrying outitsindustrial development objectives, what other policy toolswillUkraine
employ interms ofresource andcapital allocations?
Reply 4.
Ukraine willdepend, firstofall,upontheprice competitiveness ofUkrainian manufacturers.
Ukraine willsupport theoperation ofenterprises abletocompete intheworld market. Ukraine will
encourage anyactivity ofanyenterprise bymaking useofeconomic methods thatconstitute andprotect
marketeconomyfundamentals,e.g.,economicfreedom,privatepropertyandtheprincipleofcompetition,
andprotection against misuse ofpower, monopolies andunfair competition. Priorities inindustrial
policy oftheStatewillbesubject tothestrategy ofstructurally allocated investments, yet,atdifferent
stages ofeconomic reform, thesolution oftactical problems maynecessitate thesupport ofparticular
industrial sectors, branches orenterprises.
Inimplementing thetasksoftheindustrial development ofUkraine, thedistribution ofmaterial
andfinancial resources willberelated, firstandforemost, toprovide forthenational independenceWT/L/20
Page4
ofUkraine. Here, because oftheinternationalization anddecentralization ofanumber ofbranches
ofeconomic activity andthereduction inthefraction ofStatedemand onthegross domestic product,
theemphasis willbeplaced onenterprises thathavetheopportunity toparticipate andbecompetitive
intheworld market.
Thedevelopment andinternational competitiveness ofUkrainian industries willbepromoted
bycreation ofanexport financial andinsurance system. Theabsence oflow-rate, easily-available
credit creates amajor problem forsupporting exports. Measures aimed atestablishing animproved
system ofState-granted export andinvestment guarantees willbeworked outbytheGovernment.
Itisnecessary tocreate theconditions toovercome thebarriers inforeign countries byincreasing the
quality ofUkrainian goods. Tothisend,asystem ofquality certification andcontrol willbeformed
andcertificates issued forUkrainian products thatmeetworld standards.
TheGovernment plans tocreate anefficient andeasily accessible foreign trade datasystem.
TheGovernment willsupport thedevelopment ofhigh-technology branches ofthemachine
building industry (electronic andelectrotechnical industries, control instrument industry, aircraft and
spacecraft industries, automobile industry, bearing industry, machine toolindustry, electric welding
hardware industry), which isspecified inReply 1.When Ukrainian production inthemachine tool,
electrotechnical andother branches ofindustry reach world standards ofquality, itwillbeeasier for
Ukraine toestablish itsposition intheworld market. Theforeign tradepolicy willbeaimed atincreasing
thepercentageofmachinebuildingproductionwhichgoesintoexport;20percentatpresent,50percent
asagoal.
Established industries inthenational economy, asopposed tonewindustries, willhavetostand
themarket test. There willbeonlyminor State interference, ifany,intheoperation ofthemarkets
forbothtraditional andnascent industries.
IndustrialenterprisescannotcountonStatesubsidiesinthedevelopmentofmoderntechnologies
andmodernization ofproduction. TheGovernment aimstoensure thecompetitiveness ofprices for
theproducts ofthemetallurgical, chemical andwood processing industries andplans toattract foreign
investments andtechnologies inthose industrial branches thatarenotabletocompete intheworld
market.
TheGovernment makes every effort torender every industrial branch acompetitive oneby
implementing integrated R&D conversion programmes comprising 22directions approved bythe
Resolution No.229of25March 1994, "OntheUseoftheR&D andProduction Potential ofMilitary-
Industrial Complex forDevelopment oftheNational Economy". TheR&D work issupported atthe
expense oftheStatebudget andthatoftheenterprises oftheMilitary-Industrial Complex. Commercial
bankcredits areusedtosupport thereorientation oftheproduction oftheex-defence enterprises. Further
on,fundamental research willbesupported byusing therevenues ofenterprises toformaspecial R&D
support fund.
Pricing Policy
Question 5.
Please provide alistofthegoods thataresubject toindicative prices. Howarethese prices
implemented?WT/L/20
Page5
Reply 5.
Indicative prices aresetforgoods ofstable export from Ukraine, thevolume ofwhich have
exchange earnings thatsignificantly affect theeconomic situation oftheState, asthewhole, andon
external payments balance inparticular. Indicative prices aresetinabsolute figures inUS$forgoods,
produced incompliance withcurrent Ukrainian quality standards, forthef.o.b. orDAF (delivered
atfrontier) delivery basis (according toINCOTERMS 90)andLC(letter ofcredit) payment terms.
Indicative prices aresetbased ontheresults ofanalysis ofdataoftheleveloftraditional prices
withadueallowance forweighted average freight fromUkrainian ports, thelevelofprofits obtained
bytraditional international trading firms andwithallowance foraquality index ofdomestic goods
compared togoods ofother manufacturers present inthemarket.
Indicative Prices Recommended foruseinConcluding Foreign Trade Deals
_________________________________________________________________________________
Export Prices
Products Price, $/t TNZED Code
________________________________________________________________________________________
Ferrous Metals
Castiron 116-120 720100000
Ferrous metal wastes 112-120
Chemical Industry Products
Carbamide (inbulk) 136-140 310210000
Dehydrated ammonium 176-180 281410000
Monoammonium phosphate (inbulk) 173-180 283521000
Ammonium sulphate 45-50 283329900
Methanol 350-380 290511000
Agricultural Products
Frozen meatwithnobones 1900-2000 0201-0202
Dried fatless milk 950-1000 040210990
Salt(inbulk) 21-25 250100910
Pea(inbulk) 170-175 110319900
Margarine 610-670 151700000WT/L/20
Page6
Butter 1150-1200 040500100
Ethyl alcohol, 96% 600-630 220710000
Vegetable oil 610-620 151219910
Wheat 130-135 100190000
Casein 2500-2700
Corn 135-140 100590000
Sugar 325-350 170199100
_________________________________________________________________________________
Import Prices
Products Price, $/t TNZED Code
________________________________________________________________________________________
FuelandLubricants (CIS-production)
Gasoline A-93 175-180 27100000
Gasoline A-76 165-170 27100000
Diesel fuel(S-0.3) 155-160 27100000
Black oil(Sulphur content: 3.5%) 62-65 27100000
________________________________________________________________________________________
Question 6.
Which wholesale orretail foodprices areregulated orsubject tosubsidies? Please provide
details ontheir scope andoperation.
Reply 6.
Thewholesale andretail prices forfoodproducts wereregulated byapplication ofmarginal
markups. Themarginal markups were eliminated bytheendof1994.
Privatization
Question 7.
Please explain howParliament 'sJuly1994resolution suspending privatization willimpact
theGovernment 'sprivatization programme. What plans doestheGovernment ofUkraine have
toassist theprivatization effort?WT/L/20
Page7
Reply 7.
TheResolution oftheSupreme Rada of29July1994, "OnPerfection oftheMechanism of
Privatization inUkraine andStrengthening oftheControl Over ItsImplementation" suspended the
concluding ofcontracts forsaleorleasewithredemption toownership oftheobjects ofprivatization.
Thiswasatemporary measure which hasbeentaken untiltheSupreme Radaapproves theListofObjects
NotSubject toPrivatization. However, preparation forprivatization iscontinuing bytheFund ofthe
State Property incompliance withthedirections setupbytheState Privatization Programme.
Toaccelerate privatization, theGovernment isdrawing upanumber ofdrafts ofamendments
andsupplements tothecurrent lawofprivatization. TheState Programme ofPrivatization for1994
specified thefollowing high-priority goals inimplementation ofthepurposes oftheGovernment in
privatization:
- large-scale privatization ofthetrade enterprises;
- initiation ofprivatization ofindustrial enterprises;
- involvementoftheUkrainiancitizensintoprivatizationbymeansofprivatizationdeposit
accounts;
- development ofthemarket infrastructure;
- creation oftheconditions tospeed upprivatization andafter-privatization operation
ofenterprises;
- creation offavourable conditions forforeign investors toparticipate inprivatization.
TheResolution oftheSupreme Rada of29July1994, "OnPerfection oftheMechanism of
PrivatizationandStrengtheningofControloveritsImplementation"suspendedtheconclusionofcontracts
forsaleorleasewithredemption toownership ofStateenterprises sothatthemechanism ofprivatization
canbeperfected. Toimplement thisResolution, theGovernment hasdrawn upthefollowing draft
lawsandresolutions:
- Resolution oftheSupreme Rada "OnAdoption oftheListofEntities notSubject to
Privatization";
- TheLawofUkraine "OnAmendments andSupplements toLegal Regulations with
regard toPrivatization";
- TheLawofUkraine "OnLease oftheProperty ofState-owned Enterprises and
Organizations";
- TheResolution oftheCabinet ofMinisters "OnAmendments toMethods ofEvaluation
oftheCosts ofPrivatization Objects".
Thedecision onnewregulations regarding contracts forthesaleofprivatization objects will
betaken bytheSupreme Rada afteritexamines thelawsandresolutions above.WT/L/20
Page8
Question 8.
Please provide thepercentage ofsmall-and-medium scale enterprises thathave been
privatized. What isthepercentage oflarge state-owned enterprises thathave been privatized?
How many enterprises ineachcategory areexpected tobeprivatized during thenextyear?
Reply 8.
During thefirstninemonths of1994, 43.9percentofsmall scaleand22.8percentofmedium-
andlarge-scale enterprises wereprivatized incompliance withtheprovisions oftheStateProgramme
ofPrivatization tobeimplemented in1994. Newprivatization quotas willnowbesetbytheState
Privatization Programme. Atpresent 10,214 enterprises have been privatized, 6,328 small-scale
enterprises included. In1995itisplanned tocomplete small-scale privatization. Also, large-scale and
medium-scale state-owned enterprises willbeconverted intopublic corporations incompliance with
theDecree ofthePresident "OnCorporatization ofEnterprises".
Question 9.
Please elaborate ontheprivatization offormer Ukrainian agricultural trade organizations.
Which ofthose stilldominate intrade inthemajor agricultural commodity groups? What
percentage ofimports, bycommodity, dotheyprovide?
Reply 9.
Theprivatization ofagricultural andfoodprocessing enterprises willbeeffected incompliance
with theDecree ofthePresident ofUkraine "OnPeculiarities ofPrivatization ofProperty in
Agro-Industrial Complex". Itestablishes thatenterprises thatprocess agricultural products ormaintain
agricultural enterprises beprivatized mainly bytheconversion intopublic corporations, themajor
shareholding being distributed between producers ofagricultural products; thestate-owned agricultural
enterprises beconverted inprivatization intocollective agricultural enterprises. Inthiscasethemembers
ofsuchenterprises willgetcompensation forproperty owned byacollective andconveyed freeof
charge totheState. Itisplanned thatallstate-owned agricultural enterprises willbeprivatized. About
3,757 state-owned trade andpublic catering enterprises havebeenprivatized asof1October 1994.
During thesame period 179state-owned agricultural enterprises wereprivatized which accounted for
13percentoftheirtotalnumber. Ahigher rateofprivatization wasobserved inthefoodindustry.
Thus, inthemilkcanning industry, cigarette, vegetable oilandbeerproduction, approximately half
oftheenterprises havebeenprivatized.
III. Foreign Trade Regime
1. Imports Regulation
Tariff Regulation Development
Question 10.
Please clarify ifUkraine 's1993 tariff schedule andtheprovisions ofResolution 285that
revise thatschedule arethelatest information onUkraine 'stariff rates. Ifthere ismore current
information, please provide itaswellasimport databytariff lineandsupplier country.WT/L/20
Page9
Reply 10.
Thechanges intopreferential orfullratesofimport duties oftheUnified Customs Tariffs of
Ukraine thatcover particular goods were introduced bytheResolutions oftheCabinet ofMinisters
No.575of22August 1994andNo.285of3May1994, (thelatter provides notonlyforanincrease
inimport dutyratesforsome goods butforasignificant decrease inthem foraconsiderable portion
ofthegoods). Also, some goods areexempted fromimport duties bytheUkrainian President 'sDecree
No.502/94 of7September 1994, "OnMeasures toRegulate Prices onParticular Periodicals". The
dataarethelatest information onchanges intherates. Therestoftheschedule remains unchanged.
Anewtariff schedule iscurrently being prepared andshould befinalized inearly 1995. Trade data
atthelevelofdetail currently maintained isattached.
LIST
OfParticular Types ofGoods forwhich Customs Duty
Have Been Changed
(Incompliance withResolution 285)
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
01.02 10000 Livebovine animals (pure-bred) 0 10
01.03 10000 " "
01.04 10100 " "
01.04 20100 " "
02.01 Meat ofbovine animals, fresh orchilled 15 30
02.02 Meat ofbovine animals, frozen 20 50
02.03 Meat ofswine, fresh, chilled orfrozen 20 50
02.04 Meat ofsheep orgoats, fresh, chilled orfrozen 15 30
02.05 Meat ofhorses, asses, mules orhinnies, fresh, chilled
orfrozen 15 30
02.06 Edible offalofbovine animals, swine, sheep, goats,
horses, asses, mules orhinnies, fresh chilled or
frozen 20 50
02.07 Meat ofedible offal, ofthepoultry ofheading
No.0105, fresh, chilled orfrozen 20 50
02.08 Other meatandedible meatoffal, fresh, chilled or
frozen 5 30
02.09 Pigfatfreeofleanmeatandpoultry fat(not
rendered), fresh, chilled, frozen, salted, inbrine,
dried orsmoked 20 50WT/L/20
Page10
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
02.10 Meat andedible meatoffal, salted, inbrine, dried or
smoked; edible flours andmeals ofmeatormeat
offal 20 50
03.02 70000 Caviar andcaviar substitutes (sturgeon roe,salmon
roe,other fishandseaproducts) 20 70
03.03 80000 " "
03.05 20000 " "
16.04 20900 " "
16.04 30100 " "
04.01 Milk andcream, notconcentrated norcontaining
added sugar orother sweetening matter 20 50
04.02 Milk andcream, concentrated orcontaining added
sugar orother sweetening matter 20 50
Except
04.02 10110 Preparations forinfant use,putupforretail sale 0 5
04.02 10990 " "
04.02 21110 " "
04.02 29990 " "
19.01 10000 " "
04.05 Butter andother fatsandoilsderived from milk 40 80
04.06 Cheese andcurd 20 40
04.07 Bird'seggs, inshell, fresh, preserved orcooked 20 50
09.01 Coffee 5 30
09.01 11000 Coffee, notroasted 0 10
09.01 12000 " "
10.01 10100 Wheat andmeslin (seeds) 0 20
10.05 10110 " "
10.05 10130 " "
10.05 10150 " "
12.04 00100 0 5WT/L/20
Page11
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
12.05 00100 " "
12.09 " "
12.14 0 10
12.08 Flours andmeals ofoilseedoroleaginous fruits 0 5
12.11 Plants andparts ofplants, seeds andfruits, ofakind
usedprimarily inpharmacy 0 10
15.12 Sunflowerseed, sunflower orcottonseed oiland
fractions thereof, whether ornotrefined 30 60
15.16 Animal orvegetable fatsandoilsandtheirfractions,
partly orwholly hydrogenated 20 50
15.17 Margarine, other thanedible fatsoroilsortheir
fractions ofheading No.15.16 30 60
15.20 Glycerol (glycerine), including pure, glycerol waters
andlyes 0 20
16.01 00990 Sausages cooked 50 100
17.01 Cane orbeetsugar andchemically puresucrose, in
solid form 30 60
18.01 00000 Cocoa beans, whole orbroken 0 10
18.06 Chocolate andother foodpreparations containing
cocoa 50 100
21.01 10110 Concentrates ofcoffee andpreparations onabasis of
these products (solid) 10 50
22.03 Beer 30 200
22.04 22.05 Wine, champagne 30 200
22.06 Wine ofanactual alcoholic strength byvolume not
lessthan12%anddessert beverages (including
sparkling wine) 30 60
22.07 Ethyl alcohol spirit (without undernatured ethyl
alcohol spirit) 30 350
22.07 20000 Ethyl alcohol andother spirits usedtoprepare
spirituous juices 30 350
22.08 90910 " "
22.08 90990 " "
22.08 Spirits, liqueurs andother spirituous beverages 50 350
Except
22.08 90910WT/L/20
Page12
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
22.08 90990
22.08 Cognac 50 300
24.01 Tobacco 0 50
24.02 Tobacco products 30 200
25.03 Sulphur 60 100
25.10 Natural calcium phosphates 0 5
26.06 Aluminium oresandconcentrates 0 5
27.01 Coal 0 10
27.02 27.03 Coke, peat, lignite 0 5
27.04
27.07 Oilsandother products ofthedistillation ofhigh
temperature coaltar 0 5
27.09 27.10 Petroleum andpetroleum oils 0 0
27.11 Petroleum gases andother gaseous hydrocarbons 0 5
28.04 Helium 0 10
28.06 10000 Hydrogen chloride (hydrochloric acid) 15 30
28.09 20000 Phosphoric acidandpolyphosphoric acids 0 10
28.10 Oxides ofboron; boric acid 0 10
28.11 Other inorganic acids 0 10
28.12 10900 Halides 0 10
28.15 Sodium hydroxide (caustic soda); potassium
hydroxide (caustic potash); peroxides ofsodium and
potassium 0 10
28.25 Hydrazine andhydroxylamine andtheirinorganic
salts 0 10
28.26 90900 Complex flourine salts(flourides) others 0 10
28.27 10000 Ammonium chloride 15 30
28.30 90190 Sulphides; polysulphides others 0 10
28.33 Sulphates; alums; peroxosulphates 0 10
28.35 23000 Phosphate oftrisodium 0 10
28.36 40000 Potassium carbonates 0 10
28.41 60000 Manganites, manganates andpermangantes 0 10WT/L/20
Page13
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
28.42 10000 Double orcomplex silicates 0 10
28.43 10900 Colloidal precious metals others 0 10
28.49 10000 Carbide ofcalcium 0 10
29.10 10900 Acyclic hydrocarbons forother purposes 0 15
29.01 23000 Butene (butylene) andisomers thereof 0 15
29.02 20900 Benzene 0 15
29.02 30900 Toluene 0 15
29.02 41000 Xylenes 0 15
29.02 42000 " "
29.02 43000 " "
29.02 50000 Styrene 0 15
29.03 22000 Trichloroethylene 0 15
29.04 Derivatives ofhydrocarbons 0 15
29.05 13000 Butane 1-ol., 2-Ethylhexan -1-ol 0 15
29.05 16100 " "
29.07 11000 Phenol 0 15
29.14 11000 Acetone 0 15
29.14 22000 Cyclohexanone 0 15
29.15 31000 Ethyl acetate 0 15
29.16 11100 Acrylic andmethacrylic acid 0 15
29.16 11900 " "
29.16 12000 " "
29.16 13000 " "
29.16 14000 " "
29.22 11000 Monoethanolamin 0 15
29.25 19900 " "
29.33 51900 Piperidine 0 15
29.33 71000 6-Hexanelactam (epsilon-caprolactam) 0 15
29.42 Other organic compounds 0 15
31.04 10000 Potassium chloride 0 10
32.08 10100 Varnishes 0 10WT/L/20
Page14
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
32.08 10900 " "
32.08 90990 " "
34.02 Organic surface-active agents, whether ornotputup
forretail sale0 20
34.03 19910 Preparations forlubricating machines, appliances and
vehicles0 20
38.02 Activated carbon 0 10
38.11 Anti-knock preparations 0 10
38.12 Prepared rubber accelerators; compound plasticisers
forrubber orplastics notelsewhere specified or
included; anti-oxidising preparations andother
compound stabilizers forrubber orplastics 0 10
39.01 20000 Polyethylene 0 10
39.02 10000 Polypropylene 0 10
39.03 Polymers ofstyrene, inprimary forms 0 10
39.04 Polymers ofvinyl chloride 0 10
39.07 30000 Polycarbonate, epoxide resins 0 10
39.07 40000 " "
39.09 40000 Phenolic resins 0 10
39.11 10000 Petroleum resins, coumarone, indene or
coumarone-indene resins andpolyterpens0 10
39.12 Cellulose 0 10
39.14 Ion-exchanging resins 0 10
39.19 10510 Filmofpolymers ofvinyl chloride 0 10
39.20 51000 Plastic glass 0 10
40.01 Natural rubber, balata, gutta-percha, guayule, chicle
andsimilar natural gums, inprimary forms orin
plates, sheets orstrips 0 10
40.21 Synthetic rubber andfactice derived from oils,in
primary forms orinplates, sheets orstrip; mixtures
ofanyproducts ofheading No.4001 withany
product ofthisheading, inprimary forms orinplates,
sheets orstrip 0 10
40.09 Rubber tubes, pipes andhoses 0 10
40.10 Conveyor, transmission belts 0 10WT/L/20
Page15
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
41.04-41.09
42.03Leather ofbovine animals, articles ofapparel of
leather5 50
43.01, 43.02
43.03Rawfurskins, articles ofapparel offurskins 20 50
44.01 10000 Wood andarticles ofwood 0 5
44.03 10910 " "
44.03 10990 " "
44.03 91000 " "
44.03 99900 " "
44.07-44.12 " "
47.01-47.07 Mechanical wood pulp, pulps ofother fibrous
material, waste andscrap ofpaper orpaperboard 0 5
48.01, 48.02 Paper, paperboard 0 10
48.04, 48.05 " "
48.10 " "
48.06 10000 Vegetable parchment 0 10
48.06 40100 Glassine papers 0 10
48.08 20000 Sackkraftpaper, creped orcrinkled, whether ornot
embossed orperforated 0 10
48.20 20000 Exercise books 0 5
51.01 Wool 0 5
51.06, 51.07 Wool yarn, cotton yarn 0 5
52.07, 52.05 " "
52.06 " "
51.11, 51.12 Fabrics 0 10
52.08-52.12 " "
54.07, 54.08 " "
55.12-55.16 " "
56.03 " "
52.01 Cotton 0 10
53.03 Jutefibre 0 5WT/L/20
Page16
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
54.01-54.06 Synthetic thread andyarn 0 10
55.01-55.11 " "
57.01-57.05 Carpets andother textile floor coverings, knotted 20 60
69.13 10000 Ceramic articles ofporcelain orchina 5 40
69.14 10000 " "
70.13 21110 Crystal articles gathered byhand 10 50
70.13 21190 " "
70.13 31100 " "
70.13 99100 " "
71.13, 71.14
71.16Articles ofjewellery andparts thereof, including
articles withdiamonds, precious orsemi-precious
stones 50 150
71.13 20000 Kitchenware ofbasemetal cladwithsilver orgold 20 60
71.14 20000 " "
71.15 90900 " "
71.15 10000 Other articles ofprecious metal cladwithprecious
metal0 30
71.15 90100 " "
73.04 20100 Drill pipe 0 20
73.06 20000 Casing andtubing ofakindusedindrilling foroilor
gas 0 20
73.08 Structures (excluding prefabricated buildings of
heading No.9406) andparts ofstructures ofironor
steel; plates, rods, angles, shapes, sections, tubes and
thelike,prepared foruseinstructures, ofironor
steel 0 5
74.01-74.04 Copper, copper waste andscrap 0 5
74.07, 74.09 Copper bars, rodsandprofiles 0 5
75.01-85.03 Nickel, nickel waste andscrap 0 5
75.05, 75.06 Nickel bars, rods, profiles andwire 0 5
76.01 Aluminium 0 5
76.02 Aluminium waste andscrap 0 5
76.04, 76.06 Aluminium bars, rodsandprofiles 0 5
76.08 Aluminium foil 0 5WT/L/20
Page17
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
78.01 Lead 0 5
78.02 Lead waste andscrap 0 5
79.01 Zinc 0 5
79.02 Zincwaste andscrap 0 5
79.04, 79.05 Zincbars, rods, profiles andwire 0 5
80.01-80.04 Tin,tinwaste, tinbars, rods, profiles 0 5
81.01 Tungsten (wolfram) andarticles thereof, including
waste andscrap 0 5
81.02 Molybdenum andarticles thereof, including waste and
scrap 0 5
81.04 Magnesium andarticles thereof, including waste and
scrap 0 5
81.05 Cobalt matters, including waste andscrap 0 5
81.06 Bismuth andarticles thereof, including waste and
scrap 0 5
81.07 Cadmium andarticles thereof, including waste and
scrap 0 10
81.11 Manganese andarticles thereof, including waste and
scrap 0 10
81.12 Gallium andarticles thereof, including waste and
scrap 0 10
84.01 Nuclear reactors; fuelelements (cartridges) non-
irradiated, fornuclear reactors; machinery and
apparatus forisotopic separation 0 10
84.08 Parts suitable foruseinagricultural machines
(excluding positions 87.03, 87.04) 0 10
84.09 91000 " "
84.32 90900 " "
84.33 90000 " "
84.34 90000 " "
84.36 90000 " "
84.09 Parts suitable forusesolely orprincipally withthe
engines 0 10
84.11 Turbo-jets, turbo-propellers andother gasturbines 0 10WT/L/20
Page18
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
84.13 Pumps forliquids, whether ornotfitted witha
measuring device; liquid elevators 0 10
84.18 Refrigerators, freezers andother refrigerating or
freezing equipment, electric orother; heatpumps 5 30
84.19 Machinery, plant orlaboratory equipment whether or
notelectrically heated, forthetreatment ofmaterials
byaprocess involving achange oftemperature 5 30
84.22 Dish-washing machines; machinery forcleaning or
drying containers; machinery forfilling andclosing
bottles 5 30
84.24 Mechanical appliances (whether ornothand-operated)
forspraying liquids orpowders 5 30
84.25 Pulley tackle andhoists other thanskiphoists;
winches andcapstans; jacks 5 30
84.27 Fork-lift trucks; other works trucks fitted withlifting
orhandling equipment 5 30
84.28 Other lifting, handling, loading orunloading
machinery (forexample, lifts,escalators, conveyors) 5 30
84.29 Self-propelled bulldozers, angledozers, graders,
levellers, scrapers, mechanical shovels, excavators,
shovel loaders, tamping machines androadrollers 5 30
84.30 Other moving, grading, levelling, scraping,
excavating, tamping, compacting, extracting orboring
machines5 30
84.30 49000 Drilling, oilandgasequipment, spare parts 0 10
84.31 43000 " "
84.38 90000 Parts 0 10
84.45-84.49 Machines forlightindustry 0 10
84.51-84.53 " "
84.65 Machine-tools forworking wood, cork, bone, hard
rubber, hardplastics orsimilar hardmaterials 5 30
84.67 Tools forworking inthehand, pneumatic orwith
self-contained non-electric motor 5 30
84.68 Machinery andapparatus forwelding other thanthose
ofheading No.85.155 30
84.69 Typewriters 10 40WT/L/20
Page19
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
84.70 Calculating machines; accounting machines, postage-
franking machines, ticket-issuing machines and
similar machines, incorporating acalculating device 10 20
84.71 Automatic data-processing machines andunits thereof;
magnetic oroptical readers 10 40
84.72 Other office machines (hectograph orstencil
duplicating machines, automatic banknote dispensers,
coinsorting machines)10 40
84.81 Taps, cocks, valves andsimilar appliances forpipes,
boiler shells, tanks, vatsorthelike,including
pressure-reducing valves andthermostatically
controlled valves 0 10
85.01 53910 Electric multiphase engines ofanoutput over75kw
butnotexceeding 750kw 0 10
85.07 Electric accumulators, including separators 0 10
85.16 50000 Microwave ovens 10 40
85.17 Electrical apparatus forlinetelephony orline
telegraphy 10 40
85.18 Microphones andstands thereof; loudspeakers 10 40
85.19 Turntables (record-desks), record-players, cassette-
players andother sound reproducing apparatus, not
incorporating asound-recording device 10 40
85.20 Magnetic taperecorders andother sound recording
apparatus 10 40
85.21 Video recording orreproducing apparatus 10 40
85.22 Parts andaccessories ofapparatus ofheading 85.19-
85.21 10 40
85.23 Prepared unrecorded media forsound recording or
similar recording ofother phenomena 10 40
85.44 11100 Insulated wireofcopper, lacquered orenamelled 0 5
86.01 Raillocomotives 0 10
86.02 Other raillocomotives; locomotive tenders 0 10
86.03 Self-propelled railway ortramway coaches 0 10
86.04 Railway ortramway maintenance orservice vehicles 0 10
86.05 Railway ortramway passenger coaches, notself-
propelled; luggage vans, postoffice coaches and
other special purpose railway ortramway coaches,
notself-propelled 0 10WT/L/20
Page20
HSCode Description ofGoods According HS Rates ofDuty
Favourable Full
86.06 Railway ortramway goods vansandwagons notself-
propelled 0 5
86.07 Parts ofrailway ortramway locomotives orrolling-
stocks 0 5
86.08 Railway ortramway tracks fixtures andfittings 0 5
87.02 Motor vehicles forthetransport (trolley buses) 0 30
87.03 Motor carsandother motor vehicles principally
designed forthetransport ofpersons 0 20
87.06
ExceptChassis fitted withengines formotor vehicles 0 20
87.06 00910
87.07
ExceptBodies (including cabs) forthemotor vehicles 0 20
87.07 10100
87.07 10900
87.08 (only
forpositions
87.02, 87.05)Parts andaccessories ofthemotor vehicles 0 20
88.02 Aircraft (aeroplane, helicopters) 0 20
88.05 Aircraft launching gear; deck-arrestors orsimilar
gear; ground flying trainers; parts oftheforegoing
articles 0 20
89.05 20000 Floating andsubmersible drilling orproduction
platforms 0 10
89.08 Vessels andother floating structures forbreaking up 0 10
90.26 Instruments andapparatus formeasuring orchecking
theflow, level, pressure orother variables ofliquids
orgases 0 10
90.23 Instruments, apparatus andmodels, designed for
demonstrational purposes, unsuitable forother uses 0 10
90.27 20100 Chromatographes 0 10
90.30 Oscilloscopes, spectrum analyzers andother
instruments andapparatus formeasuring andchecking
electrical quantities; instruments andapparatus for
measuring ordetecting alpha, beta, gamma, X-ray,
cosmic orother ionizing radiations. 0 10WT/L/20
Page21
Question 11.
Please explain thesudden anddramatic increase incommodity tariffs effective 3
May1994, thatresulted from Resolution 285oftheCabinet ofMinisters ofUkraine. What is
Ukraine 'sphase outplanforthese tariff increases?
Have other resolutions orlegalinstruments beenpromulgated thatfurther affect Ukraine 's
tariff treatment ofimports?
Reply 11.
Incompliance withtheProgramme ofEconomic Reform ofthePresident theGovernment took
onresponsibility toreduce themaximum tariff rateto,generally, 30percentby1March 1995.
TheGeneral Description oftheCustoms Tariff Structure
Question 12.
What isthestatutory basis andadministrative procedure fortheestablishment andreview
ofvarious types ofduties andtaxes including advalorem, seasonal customs taxes, "special duties",
andexcise taxes?
Whichgovernmentagenciesplayaroleinsettingvariousdutiesandtaxes?DoesParliament
have anyjurisdiction overthisissue?
How arechanges induties announced? Isthere anappeals procedure orprovision for
public comment?
Reply 12.
Incompliance withtheLawofUkraine of28January 1994, "OnAmendments totheDecrees
oftheCabinet ofMinisters onCustoms Duties Regulation" thetaxratesprovided forbytheUnified
Customs Tariff ofUkraine maybechanged onlyinrelation tocustoms taxation subjects. Here,
itisestablished thatdraftlawsoncustom dutyandtaxregulations including those covering thesetting
andchanging of,orexempting from, suchtaxesorduties besubmitted forconsideration bytheCabinet
ofMinisters onlyafterconsideration andapproval bytheCustoms Tariff Council. ThisLawestablished
thisprocedure until1January 1995. Since thenanyamendments totariff ratesmustbeapproved by
theSupreme Rada.
TheLaw"OnUnified Customs Tariff" establishes thatanyamendments tothetariffratesshould
beofficially published inaccessible media atleast45daysbefore theseamendments aremade effective.
Theofficial publication ismade inofficial periodicals: "Golos Ukrainy" or"Uryadovy Kurier", the
organs oftheSupreme Rada andtheCabinet ofMinisters, respectively.
TheCustoms Tariff Council wasformed incompliance withArticle 5oftheLawofUkraine
"OntheUnified Customs Tariff" andtheResolution oftheCabinet ofMinisters No.62of
7February 1994, "On theCustoms Tariff Council ofUkraine". TheCustoms Tariff Council is
acollegiate body withtheCabinet ofMinisters. TheResolution oftheCabinet ofMinistersWT/L/20
Page22
No.343-p of16May1994, established thattheSecretariat oftheCustoms Tariff Council beformed
under TheStateCustoms Committee toprovide fororganizational support oftheCouncil operation.
Question 13.
Itisstated inthissection [General Description oftheCustoms Tariff Structure] thatcertain
imported products areassessed aspecific oracombined advalorem/specific rateofduty. However,
neither Ukraine 's1993 Harmonized Tariff Schedule nowResolution 258includes reference to
specific orcombined av/specific rates. Please provide alistinHSformat oftheproducts that
facesuchrates.
Reply 13.
TheLawofUkraine "OntheUnified Customs Tariff" provides forseasonal customs duties
(Clause 10)andspecial kinds ofcustoms duties (Clauses 11through 15).Atpresent these duties do
notexist. Themechanism ofthecollection ofaseasonal customs dutyisbeing developed bytheMinistry
ofAgriculture andFood andthatforcollection ofananti-dumping dutybytheMinistry ofForeign
Economic Relations.
Clause 7oftheLawofUkraine "OntheUnified Customs Tariff" authorises advalorem,
specific andcombined duties. Thespecific andcombined customs duties havenotbeenestablished
sofarinpractice.
Question 14.
Please provide clarification oftheStatement inthissection that"seasonal customs taxes
maybeestablished foraperiod notexceeding fourmonths".
Please provide acomplete listbyHSnumber ofthetariff items thatweresubject toseasonal
taxes in1993 and1994.
How doesUkraine plantophase-out suchactions given itsprospective obligations under
theGATT/WTO?
Reply 14.
Theuseofseasonal duties willbeconformed totheGATT/WTO requirements bythe
Governmental Commission ofImport Regulations. Seasonal duties havenotsofarbeenapplied.
Question 15.
Ukraine states that"special duties" maybeassessed onimports incertain circumstances,
including assafeguards inthetraditional GATT sense, asA/Dmeasures, asCVD measures, and
asnational security measures. Could Ukraine provide anexplanation ofhowitintends toconform
these special duties totherequirements oftheGATT/WTO related safeguards, A/D, CVD, and
national security?WT/L/20
Page23
Please provide acomplete listbyHSnumber ofthetariff items thatcurrently aresubject
to"special" duties.
Are"special" duties established forafixed timeorindefinitely?
Pleasefurtherdescribethetestthatisusedfordetermining"substantialdamagetoproducers
ofsimilar goods" regarding theapplication ofspecial duties. How isthestatus of"similar"
established inthisprocess?
Reply 15.
Incompliance withtheLawofUkraine "OnUnified Customs Tariff", irrespective oftheother
types ofcustoms duties, specific types ofcustoms duties areestablished tobeapplied inparticular
cases when commodities aredelivered intheterritory ofUkraine andmoved therefrom. These specific
customs duties include special duties, anti-dumping duties andcountervailing duties.
These special duties willbeassessed onimports incertain circumstances onlyinthetraditional
GATT/WTO sense andasnational security measures.
Theanti-dumping duties aretobeapplied incompliance withArticle VIGATT andthe
Anti-Dumping Code oftheUruguay Round.
Thecountervailing duties aretobeapplied inthecases provided forbytheAgreement on
Subsidies andCountervailing Measures.
Themechanism ofapplication ofthegiven typesofspecial duties asasafeguard inthetraditional
GATT/WTO sense doesnotexist, thisiswhyitisbeing developed bytheCommission onImport
Regulation andtheCommission onGovernmental Commission onAnti-Dumping Investigations in
Relation totheExport oftheUkrainian-origin Goods.
None ofthese types ofduties hasbeenapplied todate.
Question 16.
Please describe theinstances when Ukraine hasapplied the"special rates" ofdutydescribed
inthissection asaresponse toanother country 'sattempt "toinitiate unfair competition". Has
Ukraine considered thatsuch action should actually behandled under existing orprospective
anti-dumping law?
Reply 16.
There arenosuchinstances.
"Yes" tothesecond halfofthequestion, under ourprospective anti-dumping law.
Question 17.
Itisstated inthissection [General Description oftheCustoms Tariff Structure] that"The
anti-dumping dutyis,asarule, levied upon theimport ofgoods under theconditions stipulatedWT/L/20
Page24
byArticle VIoftheGATT ..."Please elaborate onwhat ismeant by"asarule". Arethere
instances when thedutyisnotassessed inaccordance withtheGATT?
HowdoestheapplicationofUkraine'sCVDlawrelatetoitsfutureGATT/WTOobligations?
WhichgovernmentagencieshavejurisdictionovertheapplicationofUkraine'santi-dumping
laws?
Please describe thepastcases interms ofproduct, supplier, anddutypercentage inwhich
Ukraine hasapplied anti-dumping duties.
Reply 17.
Theexpression "asarule" mustbeconsidered anerroneous oneandshould bereplaced with
"...is levied upon...".
Incompliance withtheLaw"OnUnified Customs Tariff", toestablish thefactsallowing the
special anti-dumping andcountervailing duties tobelevied, investigations aretobeinitiated. The
investigations aretobecarried outbytheMinistry ofForeign Economic Relations onapplication of
theUkrainian orforeign Stateinstitutions, tradeenterprises andorganizations, aswellasontheinitiative
oftheCustoms Tariff Council. Proceeding fromtheresults oftheseinvestigations theabove-specified
duties canbeapplied.
Also, incompliance withthePresidential Decree "OnMeasures toPrevent theExport ofthe
Ukrainian-origin Goods atprices thatcanbeconsidered dumping onesandtosettle trade disputes"
of25August 1994, aGovernmental Commission onAnti-Dumping Investigations inRelation tothe
Export oftheUkrainian-origin Goods, which isentrusted withcarrying outofinvestigations ofthe
dumping cases andapplication ofprotective sanctions provided forbytheLaws ofUkraine proceeding
fromtheresults ofanti-dumping investigations. TheCommission hasalsotodraw upandsubmit for
consideration oftheSupreme Rada thedraftlawsonbringing theLaws ofUkraine intoconformity
withtheGATT regulations concerning anti-dumping procedures.
There havebeentodatenodumping orcountervailing dutycases inUkraine.
Question 18.
Does Ukraine plantopropose anysafeguard measure tocurtail imports?
Reply 18.
Yes.TheGovernmentalCommissiononImportRegulationisdrawingupaDraftLawonImport
Regime tobring itinconformity toArticle XIXofGATT.
Question 19.
TheintroductiontoUkraine's1993HarmonizedTariffSchedulestatesthat"goodsimported
under aformal State contract arenotsubject toduty". Please provide further clarification of
thescope ofimports subject tothisexclusion.WT/L/20
Page25
Reply 19.
Goods imported intoUkraine willbeexempt fromcustoms duty, provided theyaredelivered
underStatecontractsororders,whichisstipulatedbytheDecreeoftheCabinetofMinisters"OnUnified
Customs Tariff" incompliance withtheCabinet Decree "OnLiberalization ofForeign Economic
Activities". Atthesametime,theResolution oftheCabinet ofMinisters No.932of12November 1993,
"OntheFormation andDistribution ofStateContracts andStateOrders in1994" establishes thatthe
goods being imported under Stateorders areexempt fromimport duties. Thelevelofimports covered
bythisprovision forJanuary-August 1994amounted toapproximately US$1 billion. TheStatecontracts
covered bythisprovision areonlyforgovernment procurement.
Question 20.
Theintroduction tothe1993 Harmonized Tariff Schedule states that"therates ofduty
forarticles intended forchildren arereduced by50percent" overthenormal rates ofduty.
Please explain theprocedures fordetermining thatgoods areforchildren. Please provide afull
listofthearticles thatwould begranted the50percentreduction induties.
Reply 20.
Thelistofproducts intended forchildren forwhich theratesofimport duties arereduced
by50percentascompared withthegeneral customs dutyarecontained intheAnnex totheInstructions
"OnTaxability ofGoods Imported intoUkraine" approved bytheResolution oftheState Customs
Duty Committee" No.132of31May1993.
ListofGoods forChildren
Goods TNZED Code
Special milkforinfants 04.0229110
Homogenized tinned meat 16.0210000
Children 'sfoodstuffs forretail trade 19.0110000
Homogenized vegetables 20.0510000
Homogenized jamsandjellies 20.0710000
20.0710900
Homogenized mixes offoodstuffs 21.0410000
21.0420000
Nappies 48.1840910
48.1849990
Children 'swear 61.01-64.14
Children 'sfootwear 64.01-64.03WT/L/20
Page26
Question 21.
Please provide anupdated listofthecountries which benefit from Ukraine 'sspecial
rates ofimport duty.
Reply 21.
Incompliance withtheDecree oftheCabinet ofMinisters "OnUnified Customs Tariff" of
11January 1993, forgoods produced incountries which aremembers together withUkraine ofcustoms
unions orforming withitfree-trade areas, andforgoods produced indeveloping countries, except
forthose included inthecommodity groups 25-97, preferential tariff ratesareapplied. Forgoods
producedincountriesoreconomicunionsenjoyingmost-favoured-nation'sstatus,andforgoodsproduced
indeveloping countries (incommodity groups 25-97), tariff ratescorresponding totheratesofthe
most-favoured-nation 'sregime inthetraditional GATT/WTO sense areapplied. Forthegoods ofother
countries fulltariff ratesareapplied. Atpresent suchcountries areIsrael andtheRepublic ofSouth
Africa.
The number ofthedeveloping countries is145, thatofcountries thatenjoy the
most-favoured-nation regime is30plustheFSUStates.
Question 22.
Please clarify whether thenew, higher rates specified inResolution 285apply toCIS
countries ornot.Aretheexports ofanyother country exempt from thescope ofthisResolution?
Reply 22.
Thenew, higher ratesspecified inResolution 285doapply toCIScountries, inrelation to
which themost-favoured-nation regime hasbeenestablished. Which means thatitapplies toallthe
FSUStates except forBelarus andtheRussian Federation.
Question 23.
Please provide alistofthose products byHStariff lineforwhich exemption from duty
isgranted asdescribed inthissection [General Description oftheCustoms Tariff Structure]?
Does Ukraine grant these exemptions toimports from allnations?
Reply 23.
International agreements providing forexemptions from Customs dutyforallproducts:
1. Agreement between Ukraine andtheRussian Federation onfreetrade (24June1993).
Goods coming from theRussian Federation areexempt from customs duties.
2. Similar agreement withBelarus (17December 1992).
These exemptions arenotgranted toallnations.WT/L/20
Page27
Question 24.
Does Ukraine intend tobind allofitsapplied duty-free tariff rates, particularly those
onfarm products?
Reply 24.
Yes,itdoes. However, intheframework ofUkraine 'saccession toGATT/WTO thisissue
willbeasubject forfuture negotiation.
Question 25.
DoesUkraine rebate thecustoms taxpaidoninputs thatarenotconsumed intheproduction
ofgoods forexport, suchasmachinery andequipment? AreVAT andexcise duties rebated on
suchinputs aswell?
Reply 25.
TheVAT andexcise duties arenotrebated inthese situations.
Question 26.
Given therequirements ofArticle VIIIoftheGATT, Ukraine 'scustoms processing fee
doesnotappear tobeincompliance withGATT provisions requiring thatsuchfeesmust reflect
theactual costofservices rendered foranindividual entry orexport. (SeeGATT panel onUnited
States Customs User Fee.) How doesUkraine plantoconform itscustoms policies toGATT
provisions?
Reply 26.
Collection ofcustoms feesrelated totheexecution bytheCustoms oftheirservices isprovided
forbytheCustoms FeeCode (Articles 76through 80).Theratesofcustoms feesareestablished by
theResolution oftheCabinet ofMinisters No.133of2April 1994, "OnChanging theCustoms Fees".
Incompliance withArticle 77oftheCustoms FeeCode theratesofcustoms feestobe
paidforservices incustoms matters willnotexceed theactual costofthecustoms services.
SeeReply 136.
TheImports Taxation Regime
Question 27.
Please provide anupdated listofthelegal instruments currently ineffect thatpertain to
Ukraine 'simport taxation regime, including excise taxes andvalue-added taxes. What isthe
administrative procedure forreview ofvarious types oftaxes?WT/L/20
Page28
Reply 27.
TheLaw"OnState Budget for1994" No.3898-XII of1February 1994;
TheResolution oftheSupreme Rada"OntheListofGoods (Products) tobeLevied withExcise
Taxes andtheRates ofThese Taxes" No.3951-XII of4February 1994;
TheResolution oftheCabinet ofMinisters No.526of5August 1994, "OnIntroduction of
Changes totheListofGoods tobeLevied withExcise Taxes andtheRates ofThese Taxes";
TheInstruction "OntheProcedure ofEvaluation andPayment oftheVAT and
Excise TaxLevied ontheGoods Imported intoUkraine andExported from it"approved bythe
Resolution oftheState Main Taxation Inspectorate on31May1994, No.44;
TheInstructions "OnProcedure ofApplying theVAT andExcise Duties onImported Goods",
approved bytheResolution bytheState Customs Committee No.202of7July1994.
These Instructions establish thattheVAT iscalculated proceeding fromthecustoms valuation
ofimported goods withdueallowance foractually paidcustoms fees,duties andexcise taxesforgoods
subject toexcise taxation.
Question 28.
Please provide updated information onUkraine 'svalue-added taxstructure. Isthevalue-
added taxapplied onanon-discriminatory basis forbothdomestically produced andimported
goods? Arethere anyexceptions inapplication forpreferential orother trade?
Isthe28percentVAT taxcollected onlyonimports? What level ofVAT iscollected
ondomestic goods? IstheVAT assessed ontheimport price only, orontheduty imposed as
well?
Isthevalue-added taxapplied toallfoodandagricultural products? What isthereason
fortheVAT onfoodimports? When willtheVAT bereduced?
Reply 28.
TheVAT isapplied onanon-discriminatory basistobothdomestically produced andimported
goods.
Also, seeReply 27.
TheVAT isapplied toallfoodandagricultural products.
Incompliance withtheprogramme ofreforms theVAT willbereduced forallproducts (to
20percent) starting from thebeginning of1995. TheVAT isapplied tothecostofthegoods plus
theduty.
Question 29.
Thedescription ofthe17March 1994, Decree onAdditional Measures toStabilize the
Financial Position ofEnterprises exempts from theVAT: imports ofrawmaterials, intermediateWT/L/20
Page29
goods andother goods usedinindustrial oragricultural production. Please confirm fortherecord
thatthisdescription isfully accurate.
Reply 29.
ThisDecree exempts fromtheVAT theimport ofrawmaterials, assembly unitsandpartsof
theequipment imported byresidents fortheir production demands. Itwasmade effective on
1April 1994. Italsoextends toenergy carriers (oil,oilproducts, gas)andmaterial resources for
agricultural product processing.
Thisdescription isfullyaccurate.
Question 30.
Please provide information onUkraine 'sexcise taxstructure, including alistbyHSnumber
andtaxrateapplied totheproducts subject toexcise taxes.
Arethese taxes applied inallinstances inanon-discriminatory fashion onbothdomestically
produced andimported goods? Ifnot,which excise taxes areapplied onlytoimports?
Dotheexcise taxes apply totheimports ofCIScountries orpreferential trading partners?
Reply 30.
Thegoods being imported toUkraine arelevied withexcise dutyatratesapproved bythe
Resolution oftheSupreme RadaofUkraine No.3951/12 of4February 1994, "OntheListoftheGoods
towhich apply Excise Duties andtheirRates". Thislistincludes thesubsequent amendments introduced
thereto bytheResolution oftheCabinet ofMinisters No.526of5August 1994.
Incompliance withthelegalactsabove excise duties havebeenapplied inadiscriminatory
manner toimported goods toprotect theinterests ofdomestic producers.
Allowing fortheGATT/WTO principles andrules andintheframework oftheprogramme
ofreforms coordinated withtheWorld Bank, starting from thebeginning of1995 theexcise duties
willbeequal forbothdomestic andimported goods.
Thegoods subject toexcise duties include:
alcoholic drinks (HSnumbers: 2207, 2208, 2204, 2205, 2203, 2206);
foodessences (2101, 2209);
chocolate (1806);
coffee (0901);
delicaciesofthemeatandseaproducts(16010091,16042010,16042030,16051000,16052000);
sugar (1701);
tobacco products (24022000, 24009000, 24031000);WT/L/20
Page30
video hardware andTVsets(85281011, 85281019, 85281030, 85281090, 85282010,85282071,
85282073, 85282079, 852820900);
car,buses andtrucks (8703);
tyres (401110000);
jewellery (7113);
porcelain (69131000);
cutglass products (70139910, 70133991);
furproducts (4302, 4303, 6506, 9200);
natural leather andtheproducts thereof (41004-4109, 4203);
carpets (5701, 5702, apart from 57021000);
microwave electrical furnaces (851420910);
kitchenware made from metals coated withsilver andgold(8215, 8603, 21000).
Yes,theexcise taxes apply totheimports ofCIScountries andpreferential trading partners.
Question 31.
What indirect domestic taxes other thantheVAT andtheexcise taxareapplied toimports?
Reply 31.
There arenoother suchtaxes.
Question 32.
Please explain Ukraine 'sreasons formaintaining substantial taxes onimported processed
andunprocessed agricultural products. IsUkraine prepared toeliminate these taxes upon GATT
accession orapply them equally todomestic production?
Reply 32.
Suchsubstantial taxes areapplied inorder toprotect domestic producers andreduce theState
budget deficit. Intheframework oftheimplementation oftheprogramme ofeconomic reforms
coordinated withtheIMFandWorld Bank andoftheUkraine 'saccession totheGATT/WTO, during
1995 these taxes willbemade equal forbothdomestic andforeign producers.WT/L/20
Page31
Customs Valuation
Question 33.
Please complete thequestionnaire ontheapplication oftheCustoms Valuation Agreement
containedinVAL/2/Rev.2,"InformationonImplementationandAdministrationoftheAgreement".
What partofUkraine 'scustoms valuation practices donotconform totherequirement ofthe
Customs Valuation Code?
Reply 33.
Customs valuation issubject totherequirements ofArticle 16oftheLaw"OntheUnified
Customs Tariff ".Theorder ofcustoms evaluation conforms totherules ofArticle VIIofGATT.
Atpresent theGovernmental Commission fortheUkraine 'saccession toGATT isdrawing
upadraftlawoncustoms valuation onthebasisoftheCustoms Valuation Agreement oftheUruguay
Round. Answers tothequestionnaire willbeprovided shortly.
Settlements andDuty Payment
Question 34.
Please explain Ukraine 'sreasons forrequiring payment inconvertible currencies by
non-residents. Under what circumstances might sucharequirement topayduties inconvertible
currency benecessary?
Reply 34.
Incompliance withtheResolution oftheCabinet ofMinisters ofUkraine "OnIntroduction
ofChanges toCustoms FeeRates" No.133of2March 1994, customs feesforcustoms services are
setinabsolute units inUS$. Thismeasure wasadopted because ofthehighinflation rateandfast
variation incustoms feesratestocopewiththeinflation rate.After stabilization ofnational currency
thismeasure willbeeliminated.
Incompliance withArticle 3,Clause 1oftheResolution oftheCabinet ofMinisters No.15-93
of19February 1993, "OntheSystem ofCurrency Regulation andCurrency Control", thenational
currency ofUkraine istheonlylegitimate means ofpayment intheterritory ofUkraine. Incompliance
withArticle 17oftheLawofUkraine "OnUnified Customs Tariff" andtheDecree oftheCabinet
ofMinisters No.4-93of11January 1993, thecustoms duties levied bythecustoms should bepaid
inthenational currency ofUkraine.
Question 35.
Please confirm thattheMinistry ofForeign Economic Relations inconjunction withthe
Cabinet ofMinisters ofUkraine hasthesoleauthority fordetermining, maintaining andmodifying
Ukraine 'squota andlicensing regime.
Reply 35.
TheDecree oftheCabinet ofMinisters "OnSetting Quotas forandLicensing ofGoods and
Services" of12January 1993, No.6-93establishes thatthequotas andlicensing regime besetandWT/L/20
Page32
maintained bytheCabinet ofMinisters onpresentation oftheMinistry ofEconomics which should
specify thelistsofparticular goods/services subject toquotas andlicensing andthetermofitsvalidity.
Incompliance withtheResolution oftheCabinet ofMinisters No.734of24October 1994,
"OnLiberalization ofExport Operations", inorder toimplement particular provisions oftheReport
oftheUkrainian President "OnPrimary Directions oftheEconomic andSocial Policy" approved by
theSupreme RadaofUkraine, starting from1November 1994, thefollowing willbesubject toquotas
andlicensing:
grains;
coal;
wastes offerrous metals;
pigcastiron.
Incompliance withtheprogramme ofeconomic reforms, in1995quotas andlicences forexport
ofgoods willbeeliminated. Atpresent thelicences forexport aregranted bytheMinistry ofForeign
Economic Relations.
Non-tariff Measures, Quotas andLicensing Regime
Question 36.
Itisstated inthissection [Non-tariff measures, quotas andlicensing system] that
Resolution 146terminated thelistofgoods subject toimport licences orquotas andthatcurrently
noimports aresubject tolicences orquotas. Isthisunderstanding correct? Ifnot,please provide
acomplete listbyHStariff lineofproducts thatcurrently aresubject toimport quotas orimport
licensing.
Reply 36.
Decision oftheCabinet ofMinisters, No.1046of7December 1993, contained thelistofgoods
subject toexport/import quotas andlicensing in1994. However, thedecision oftheCabinet ofMinisters,
No.146of4March 1994, "OnAmendments totheDecision No.1046 oftheCabinet ofMinisters
dated 17December 1993, cancelled theimplementation ofAnnex 3ofDecision No.1046, which listed
thegoods subject toquotas andlicensing in1994. Atpresent noimport quotas areapplied.
Question 37.
Please explain indetail theprocedures forsetting import quotas andupdate thelistof
legal instruments andauthorities.
How arepresent quotas allocated?
What plans doesUkraine haveforeliminating these quotas andending thepolicy ofusing
quotas toprotect home industry, inasmuch asthisviolates GATT?
Reply 37.
ThePresidential Decree "OntheMeasures toImplement anIntegrated StatePolicy ofImport
Regulation" of21September 1994, established aspecial Governmental Commission toregulate importWT/L/20
Page33
matters. Itisentrusted withthedevelopment andimplementation ofthemechanism ofapplication of
import restrictions inconformity totheGATT/WTO principles andrules. Atpresent, theCommission
isdrawing upadraftlawwhich provides foramechanism allowing fornon-tariff import regulation
tobeeffected incompliance withArticle XIXofGATT.
Atpresent there arenoimport quotas.
Question 38.
Please provide acomplete listbyHSnumber oftheproducts thatcurrently aresubject
toprior import approval requirements. Which products require mandatory import licences?
Reply 38.
SeeReply 36.
Question 39.
DoesUkraineapplyanylicencestoimportsforanyreason?WouldUkrainepleasecomplete
the"Questionnaire onImport Licensing Procedures" contained inL/5640/Rev. 10?
Reply 39.
Incompliance withArticle 18oftheLaw"OnForeign Economic Activities", theimport of
onlythose goods thathavesuchtechnical, pharmaceutical, phytosanitary andecological parameters
which meettherequirements ofUkrainian standards ispermitted. Also, theimport inandtransit through
theUkrainian territory ofsecondary rawmaterials issubject tolicences. Pursuant totheResolution
oftheCabinet ofMinisters No.117ofFebruary 1994, thegranting oftheimport ortransit permit
isentrusted totheMinistry ofNature andEnvironmental Protection.
SeeReply 36.
Thequestionnaire willbeanswered shortly.
Question 40.
Forprocessed goods, twocriteria arelisted inthissection: (1)change oftariff classification
and;(2)50percentormore value-added. Ismeeting oneofthese testsalone sufficient, ormust
bothbemet?
Reply 40.
Oneofthecriteria issufficient.
Question 41.
What ismeant bythestatement "goods safety during their transportation orstorage"?WT/L/20
Page34
Reply 41.
Itmeans suchalevelofprotection which brings about nodamage togoods inbothtransportation
andstorage. Theprotection ofsafety ofgoods willnotbeconsidered assubstantial transformation.
Definition ofCountry ofOrigin ofGoods
Question 42.
Upon accession totheGATT/WTO, Ukraine willhave toadhere totheAgreement on
Rules ofOrigin andapply itsprecepts andguidelines. What steps doesUkraine anticipate will
benecessary totaketoward meeting these obligations?
Reply 42.
TheUkrainian Government, intheframework ofeconomic reforms carried outinUkraine,
willtakeevery measure toimplement alltheagreements oftheUruguay Round intonational legislation
sothattheforeign trade regime could beharmonized withGATT principles andrules.
CurrentlytheGovernmentalCommissionsonImportRegimeRegulationandUkraine'sAccession
toGATT haveinitiated thework onthepreparation ofadraftlawonbringing therulesoforigin into
conformity withtheUruguay Round Agreement onRules ofOrigin.
Standards andCertification
Question 43.
Please describe anyborder measures other thancustom duties thatUkraine maintains
aswellastheproducts covered bythese restrictions.
Reply 43.
Incompliance withtheLaws ofUkraine, products tobeimported andcertified inUkraine
iftheymeetUkrainian standards, shallbeprovided withanobligatory certificate showing compliance
withtherequirements ofthestandards ofUkraine astosafety relating tolife,health, property ofcitizens
andenvironmental protection. Thiscertificate shallbeapproved byanauthorized certification body
ofUkraine designated bytheState Standards Committee foreachbranch ofindustry. "The listof
products required tobecertified inUkraine hasbeensenttotrade representatives andembassies of
Ukraine". Thelistisnotyetcomplete, butcovers metal working machinery, synthetic fibres, toys.
Allstandards arepublished andarepublicly available. Plans fordeveloping standards arecirculated
torelevant ministries andareavailable upon request.
TheLawsofUkraineestablishthatthecertificationisamustforproductsforwhichthestandards
exist applying requirements regarding safety oflife,people 'shealth andtheirproperty aswellas
environmental protection.
Thelistsofproducts subject tocertification inUkraine aretobeapproved bytheState
Standardization Body acting asaNational Certification Body and,then, registered bytheMinistry
ofJustice. Thecertification ofproducts included inthelistsapplies tosimilar import products. The
main certification regulations areasfollows:WT/L/20
Page35
1. Toeffect thecertification oftheproduct intheUkrCEPRO (State Certification System) system,
anapplicant (aforeign oneincluded) mustsubmit anapplication indueformtoanaccredited
body(ifforeign organizations havenorequisites oftheabove certification bodyitmayaddress
theNational Certification Agency).
2. Thecertification body will,nolaterthanonemonth afterthereceipt oftheapplication, let
theapplicant know about itsdecision thatmustspecify thefollowing certification conditions:
2.1. Thename andsignofastandard therequirements ofwhich must bemetbythe
applicant 'sproducts;
2.2. Selection, together withtheapplicant, ofaparticular manner (model) ofcertification;
2.3. Selection ofthetestlabtotestproducts; samples;
2.4. Selection ofanorganization tosupervise theproduction ofcertified goods (ifrequired
to,andif"yes", technical supervision willbecarried outincompliance withtheselected
manner (model).
3. Solely thecertification body hastherighttogrant theconformance certificate.
4. Theconformance certificates issued byforeign organizations canberecognized valid solely
anddirectly bycertification bodies accredited intheUkrCEPRO system.
These foreign conformance certificates canberecognized valid proceeding from theresults
oftestscarried outintestlabsaccredited intheabove system.
TheMEC,ICOstandardsand18900GOSTs(CISInterstatesStandards)areeffectiveinUkraine
now. Approximately 40percentofthem areharmonized withtheinternational standards. Some
60percentofthestandards drawn upandadopted inUkraine areharmonized withinternational
standards.
Products tobecertified intheUkrCEPRO system:
1. Household andsimilar electrical hardware, assembly units andparts.
2. Lighting appliances, assembly units andparts.
3. Manual electromechanical tools andportable worktables.
4. Video, TVanddisplay sets.
5. Household radio electronics.
6. Electrically-driven construction andassembly tools.
7. Food processing equipment.
8. Medical equipment.
9. Toys.WT/L/20
Page36
10. Synthetic detergents.
11. Miniature tractors andpowered equipment.
12. Engines oftractors andagricultural machinery.
13. Metal andwood machining equipment.
14. Electrical welding equipment.
15. Electrical machines.
16. Bicycles, prams.
17. Security andfirealarm systems.
18. Telephone sets.
19. Cinema andphoto equipment.
20. Kitchenware made from ferrous andnon-ferrous metals, faience and
porcelain.
21. Units ofautomation andmechanization ofaccounting operations.
22. Household mechanisms operating onsolid, gaseous andliquid fuel.
23. Road vehicles.
24. Agricultural machinery.
25. Inflammable electrical, equipment intended foritsoperation andrepair.
26. Light sources.
27. Textiles forchildren.
28. Food industry products.
29. Photography chemicals.
30. Petroleum products.
Question 44.
Areanyagricultural products inparticular highly restricted orbanned? Please provide
thejustification forthebanoneachitem.
Reply 44.
Thenational system ofstandards andcertification ofUkraine doesnotprovide forabanor
limitation ontheuseofanyproducts iftheymeetcurrent requirements ofstandards astosafety forWT/L/20
Page37
life,health andenvironmental protection. There arecurrently nohighly restricted orbanned agricultural
products.
Question 45.
CouldUkrainecompletethequestionnaireonstandardspracticescontainedinTBT/16/Rev?
Reply 45.
Answers tothequestionnaire willbeprovided shortly.
Question 46.
Arethestandardsandcertificationrequirementsappliedtoimportedproductsalsorequired
ofdomestic goods?
Reply 46.
Requirements astostandards andcertification ofimports donotdiffer fromtherequirements
fordomestic products.
Question 47.
Which ofthegovernment bodies listed inthissection would serve asacentral point for
thepurposes ofthecollection andnotification tointernational bodies ofstandards andthehandling
ofinquiries? Please describe themechanisms thatexist orareanticipated toenable foreign
participation andcomments onstandards thatareunder development.
Reply 47.
AUkrainian Information Centre ofStandards, Certification andTechnical Barriers toTrade
shallbecreated onthebaseoftheNational Fund ofStandards.
Foreign organizations may, ifagreed upon with theState Committee ofUkraine for
Standardization, Metrology andCertification, takepartinthedevelopment ofthestandards ofUkraine
iftheyaremembers oftechnical committees onstandards. Anyforeign organization maybecome a
memberoftheUkrainianTechnicalCommitteeonStandardization.Todosoitmustsubmitanapplication
totheTechnical Committee forconsideration which will,then, present ittotheState Committee for
Standardization, Metrology andCertification forapproval.
Question 48.
IfUkraine isnotalready amember ofCodex Alimentarius Commission (CODEX) and
theInternational Plant Protection Convention (IPPC), when doesitplantojoin? DoUkraine 's
standards forsanitary andphytosanitary measures differ from international standards established
bythese organizations?
Reply 48.
On3April 1993, Ukraine joined theInternational andMediterranean Plant Protection
Organization. TheUkraine 'sPhytosanitary Measures arebased oninternational recommendations and
standards drawn upintheframework oftheOrganization above. Ukraine usesinternational standardsWT/L/20
Page38
forplants 'quarantine complying withtheFAO Secretariat requirements (Rome, 1994, Glossary of
FAO phytosanitary terms, IPPC for1994). TheLaws ofUkraine regulating phytosanitary measures
aretheLaw"OnPlants 'Quarantine "adopted bytheSupreme Rada on10June1993, No.3348-XII,
andStatuteoftheGovernmentalBodyon"Plants'Quarantine"approvedbytheResolutionoftheCabinet
ofMinisters ofUkraine No.992of29October 1993.
Incompliance withtheLaw"OnProvision ofSanitary andEpidemic Safety ofthePopulation",
of24February 1994, lifeandhealth safety requirements arerequired tobeincorporated instandards
forfinished products, rawmaterials andtechnologies. Drafts ofthese standards aretobesubjected
toexpert examination bytheState Health Protection Bodies tocheck iftheymeettherequirements
ofinternational organizations.
Theimprovement ofsanitary standards iswithin thecompetence oftheMinistry ofHealth
Protection, phytosanitary standards arehandled bythe"Main State Quarantine Inspectorate".
Thelegislative basisoftheStateEpidemic Supervision overimported agricultural commodities
includes thefollowing documents:
theabove-mentioned Law;
theInstructions ontheStateSanitary Supervision overImported Foodstuffs of28April 1994,
No.5.08.12/418;
theMedical andBiological Standards forQuality ofFoodstuffs of1August 1989, No.5061-89;
theSanitary Rules forUseofNutrition Additives of29March 1978, No.1923-78.
TheStateSanitaryandEpidemicServicesoftheHealthMinistry,proceedingfromthedocuments
above implement State supervision andcontrol overimported goods.
TheNational Standards covering these products havebeendrawn upwithconsideration ofthe
international standards andrecommendations ofCODEX, FAO/WHO Commission.
Because ofthecomplicated situation caused bytheconsequences oftheChernobyl disaster,
theLaws ofUkraine provide formore rigidrequirements astosafety offoodproducts, inparticular
forbabies, women inpregnancy, people ofpoorhealth andelders.
Inthecertification ofimported foodstuffs oftheHealth Ministry willusethenational standards
unless otherwise specified byinternational agreements.
Incompliance withtheLawabove, thefoodproducts covered bythestandards astosafety
ofhealth andlifeshould becertified andsubjected totheState Hygienic Examination tobecarried
outbytheauthorized bodies oftheHealth Ministry.
Hygienic certificates forimported products shallbeissued afterconformity tothestandards
ofUkraine havebeendemonstrated. Hygienic certificates should beobtained byanexporter prior to
delivery ofthecommodities intheUkrainian territory. Thetermofvalidity ofthecertificate issubject
totheparticular typeofproducts, theirpurpose andtheconclusion ofthesanitary hygienic examination
body.
Ukraine isnotamember oftheFAO/WHO Commission onStandardization ofFood Products.
However, theHealth Ministry isdeveloping thenational standards tocomply withtheCommissionWT/L/20
Page39
Recommendations. Hereinsome cases there isadivergence fromtheCODE onStandards ISO/MEC
because oftheconsequences oftheChernobyl disaster.
TheHealth Ministry presents thedataonthestandards andimported foodsafety programmes
forthepopulation byregular publication inthemass media.
2. Export Regulation
Question 49.
What percentage andwhich products fallunder theState contract system forexports?
Doexporters under thesystem receive government subsidies forproduction orexport?
Reply 49.
TheResolution oftheCabinet ofMinisters of2April 1994, No.140,"OnProvision ofExport
ofGoods Under theStateContract for1994" specified thevolume ofgoods tobeexported under State
Contract.
Because ofdeficient deliveries ofgoods under StateContract planned forexport, theCabinet
ofMinisters reduced thevolume ofdeliveries offerrous metal products by1,170 tonsduring thefirst
halfofthe1994 year, Resolution No.620of23August 1994. TheState centralized hardcurrency
funds havebeenformed during 1993 to1994 primarily from revenues gained from theexport ofthe
products under State contracts. TheResolution oftheCabinet ofMinisters ofUkraine No.212of
22March 1993, established general regulations withregard toexport tobecarried outunder State
orders, quotas forthisexport in1993, andalistoftheenterprises authorized toexport goods under
State contract. TheResolution oftheCabinet ofMinisters No.421of5June1993, laiddown the
procedure ofpayments forexport carried outunder State contracts. ThisResolution allows the
authorized foreign-trade organizations tobuy,attheexpense oftheStatebudget, theproducts atinternal
market prices andtoexport them. Inthiscase, theauthorized organizations above willbefinanced
every month bytheFinance Ministry sothattheorders forwhich thebudget envisages allocations
canbefulfilled. Intheirturn,theforeign trade organizations direct thehardcurrency returns onthe
Finance Ministry foreign currency account intended forState contracts. Thisisanintegrated source
offinancing foreign policy spending associated withtheUkraine 'sobligations inforeign relations,
payments toInternational Organizations, payments ofcredits earned ontheGovernment 'sguarantee.
TheResolution oftheCabinet ofMinisters No.140of2April 1994, setsforth thelimits of
quotas forexport ofthegoods under theStatecontract for1994. Within these limits themajor share
belongs totheproducts ofmetallurgy shipped viatheUKRZOVNISHPROM foreign tradeassociation.
ThisResolution introduces, also,some amendments tothegeneral procedure oftheexport ofgoods
under Statecontracts, inparticular, those regarding thepriority oftheproduction andshipment ofthe
products tobecarried outunder Statecontracts. Italsoexempts suchgoods fromcompulsory advance
payments forcosts ofrawmaterials, power consumption, andtransportation services.
Allowing foralowefficiency ofexport carried outunder State contracts, negative effects of
theexport operations during 1993-1994 andfaults infinancial policy, theProgramme oftheGovernment
coordinatedwiththeIMFenvisagesarevocationofthecentralizedformationoftheStateforeigncurrency
funds attheexpense oftheexport ofgoods under State contracts. ThisProgramme establishes that
thesefunds willbeformed attheexpense oftheStatebudget inbuying foreign currency intheinter-bank
foreign currency market ofUkraine.WT/L/20
Page40
TheResolution oftheCabinet ofMinisters ofUkraine of2April 1994, No.140,"OnProvision
ofExport oftheGoods under theStateContract for1994" specifies thevolume ofgoods tobeexported
under State contract.
Products Unitof Export State %
measurement volume contract
total
Ferrous metallurgy thous. t 20,674 7,220 39.4
Wastes offerrous metals ditto 405 150 37
Non-ferrous metals ditto 318.37 80 25
Chemical products ditto 3,805.2 2,091 54.9
Chemical products mil.dl 28.7 2.5 8.7
Salt thous. t 3,700 30 0.8
Thisexport mechanism willcease toexistwithprivatization.
Question 50.
What isthepurpose androleoftheUkreneshtorg (foreign trade) Concern established
bytheCouncil ofMinisters inMay1994; andwhat isitsrelationship togovernment ministries?
How willthisnewentity affect theroleplayed bytheformer "special exporters"?
Reply 50.
TheUkzovnishtorg Concern wasterminated bytheDecree ofthePresident ofUkraine
No.412/94 of27July1994, which rescinded Resolution No.292oftheCabinet ofMinisters of
6May1994.
Inaddition, theregulation oftheregime ofexport control overcritical goods/technologies is
effected bytheGovernmental Commission authorized bytheDecree ofthePresident of3January 1993,
theResolution oftheCabinet ofMinisters No.160of4April 1993, andtheLetter oftheCabinet of
Ministers of11February 1994. TheGovernmental Commission isauthorized tolicense andestablish
quotas fordefence products. Aworking body oftheCommission, theExpert Technical Board, has
drawn updraft laws establishing theregime ofcontrol over non-proliferation ofmissile
technologies/enumeration ofdefence goods tobesubjected toexport control, control regulations to
beexercised overexport-import andtransit ofdefence goods andtheStatecontrol regulations toensure
thatthesaiddefence goods areusedasobligated bythedeclaration inthecontrol application. These
draftlawsaretobeapproved bytheCabinet ofMinisters.
Toimplement particular provisions oftheReport ofthePresident onthemain principles of
economic andsocial policy andfurther encouragement ofexport, theCabinet ofMinisters adopted
Resolution No.734of24October 1994, "OnLiberalization ofExport" which preserved quotas and
licences foronlyfouritems:
grains;
steel-making pigiron;
coal;
wastes offerrous, non-ferrous andnoble metals.WT/L/20
Page41
Question 51.
Please describe infurther detail Resolution 212(22March 1993) andResolution 421
(5June 1993) regarding thefinancing ofproducers ofexportable goods andthegoods 'export.
Isthisdone through asystem ofpurchase under government contract? What aretheterms?
Reply 51.
TheResolution oftheCabinet ofMinisters No.421of5May1993, "OnPayments inExports
under StateContract" established theorder ofpayments bytheexporting enterprises andorganizations.
ThisResolution directs theFinance Ministry tocarry outadvance payment fortheproducts purchased
byauthorized organizations from theorganization 'ssuppliers oftheproducts.
Theauthorized organizations export thepurchased products incompliance withtheResolution,
export them andtransfer therevenues obtained from theexport totheState budget less0.5percent
ofcommission. TheFinance Ministry andtheMinistry ofEconomics areentrusted tosupervise the
execution ofthisResolution. Actually, thismakes astimulation mechanism forindustrial branches
operating forexport.
Resolution No.212of22March 1993, applied onlytoState contracts andorders for1993
andnowitisnoteffective.
Question 52.
Forsubsidized agricultural exports overthepasttenyears, please provide thequantity,
procurement andexport prices, andbudgetary outlays. Does Ukraine maintain anycurrent
agricultural export subsidies?
Reply 52.
Atpresent Ukraine doesnotmaintain agricultural export subsidies.
SeeReply 55.
Question 53.
Whatsubsidiesarecurrentlyavailabletoexportersofagriculturalproducts?Pleaseprovide
thetypes, quantities, values andreasons foreach.
Reply 53.
SeeReplies 52,55and129.
Question 54.
What steps doesUkraine plantotaketobring itssubsidies regime intoconformity with
GATT/WTO obligations?WT/L/20
Page42
Reply 54.
SeeReply 52.
Question 55.
Inthissection [Exports Stimulation Measures, including Subsidies], Ukraine provides
information onitsquota related tocertain purchases. Arethese quotas andgovernment contracts
andorders specified solely interms ofquantity soldorexported, e.g.,intermediaries must export
apercentage ofUkraine 'sproduction ofagiven good inagiven yearorfiscal period? Orare
these quotas specified interms oftotalexport revenue/foreign currency received?
Reply 55.
In1994 three Presidential Decrees, three Resolutions oftheCabinet ofMinisters andthe
Resolution oftheSupreme Rada "OnOvercoming theCrisis inAgro-industrial Complex" of
17July1994, introduced changes intothepurchase ofagricultural products andpayments forthem,
financial support toandcredit policy inagricultural production, preferences tobegranted toagricultural
commodity producers, andpricing mechanism.
Inforeign economic activities, theagricultural commodity producers aregranted thefollowing
advantages:
- Theexport ofagricultural products, rawmaterials andthegoods resulting fromtheir
processing arenotsubject toquotas norlicences ifitiseffected under theState
contracts andorders forsupply ofthese products toState resources;
- Agricultural commodity producers areexempt fromacompulsory selling of50percent
offoreign currency (except for10percenttobeobligatorily credited totheNational
Bank) gained from theexport carried outunder State orders andcontracts ofthe
commodities oftheirownproduction. Theyarealsoexempt fromtheexport andimport
duties inbarter operations withthecommodities oftheirownproduction, iftheyimport
oilproducts, fertilizers, plant protection means, agricultural machinery required for
agricultural production;
- Inaddition, incompliance withResolution oftheCabinet ofMinisters "OnState
Contracts andOrders forAgricultural Commodity, RawMaterials andFood Products
for1994", agricultural commodity producers thatfulfilled theirobligations under State
contracts andorders areexempt fromVATinselling thecommodities produced above
thevolume oftheState contract andorder inUkraine andabroad.
Question 56.
Please explain theprogress onprivatization inthefarm economy, particularly onthe
collective andState farms. When doesUkraine plantoprivatize itsentire foodprocurement and
processing system?
Reply 56.
Ownership relations intheagrarian sector arereformed bytransforming theState property
oftheState-owned farms andthecollective property ofthecollective farms intoprivate property,
providing forfreedom forfarmers tomake theirownchoice ofeconomic activities creating onthisWT/L/20
Page43
basis amultitype economy. TheGovernment brings nopressure oncollective andState farms in
reorganizing them. Inacase, when aState farmissuffering losses inrevenues, nocompensations
areprovided for.Property sharing incollective agricultural enterprises istobemainly completed in
1995. Property ofState farms isexpected tobeprivatized during 1995-1997.
Onlythetradeoffruitandvegetable products andpotatoes relates tothesystem oftheMinistry
ofAgricultural Production ofUkraine, which isrepresented by109wholesale andretail fruitand
vegetable integrated enterprises. Together withspecialized fruitandvegetable farms, transport,
procurement, processing andtrade enterprises theyareforming asingle fruitandvegetable complex,
2,500 tonsofvegetables, 1,500 tonsofpotatoes andabout 800,000 tonsoffruits, grapes andgourds
were annually soldthrough thewholesale andretail fruitandvegetable enterprises.
Incompliance withthePresidential Decree alltheshops offruitandvegetable trade were
commercialized in1993, sotheyobtained acorporate status. Asaresult ofthistheintensive process
oftheirdespecialization began. They began tosellalcohols, non-foods andother goods. Thefruitand
vegetable complex hasbecome broken. Thefruitandvegetable integrated enterprises reduced purchases
offruits andvegetables produced andthefarms reduced landunder cultivation forvegetables. The
salesoffruits andvegetables andpotatoes fellthree tofourtimes.
Asthemarket relations develop, firm-organized trade ofagricultural products andproducts
oftheirprocessing becomes more widely used. There already areabout 1,500 suchshops inoperation,
which function mainly asstructural branches andother structural bodies. Thefirm-organized trade
demonstrates itscompetitiveness andsellsatlower prices thanks tolower markups, creates conditions
fortimely arrangements withsuppliers.
Only three ofthetrade enterprises oftheMinistry ofAgricultural Production areprivatized.
Incompliance withtheDecision oftheGovernment, freepricing ofagricultural products was
adopted in1992. Prices aresetbyproducers themselves irrespective oftheformofownership bythe
agreement withbuyers, thesupply anddemand being taken intoaccount. Theso-called guiding
purchasing prices setbytheMinistry ofAgricultural Production andcoordinated withtheMinistry
ofEconomics fortheproducts, which aresoldbytheproducers under Stateorders (grain, sunflower
seedandsugar-beet), areasortofrecommendation onlyandarenotcompulsory forpayments.
Asforwholesale andretail prices, theyarealsoformed allowing forsupply anddemand
conditions. Atthesame time, thegovernmental price control isintroduced forsome types offoods.
Thus, upper limitofprofitability andVAT aresetforflour, bread andbakery products (except higher
quality products). Every change inprices formeatandproducts ofmeatandmilkandmilkproducts
which depends onexternal factors, should bedeclared totheregional executive authorities. The
Presidential Decree setsforthageneral limitofprofitability forindustrial enterprises (upto45percent
ofcostvalue) andofmercantile addition totheprice (upto55percentofproducer price).
Sharing isanimportant pre-condition forfurther farmership development. About 28,000 farms
arealready registered, which obtained 558,000 haofagricultural land. Predominant majority offarms
isactively participating intheformation ofStateresources ofagricultural products andrawmaterials.
Astheexperience ofrecent years hasshown, farmership formation isrestrained byaseries
ofartificial andobjective causes. About 40percentoffarms areprivatized anduseupto10haof
land, which cannot provide efficient farming inthemajority oftheUkrainian regions. Thelevelof
technicalfacilitiesofthefarmsisverylow.Thisiscausedmainlybyhighpricesofagriculturalmachines,
equipment andmaterials, softcrediting stoppage forthese farms, State budget limitations.WT/L/20
Page44
Question 57.
Inaddition torequiring licences forimporters andexporters, what other measures does
theGovernmentofUkraineusetocontroltradeinprocessedandunprocessedagriculturalproducts?
What aretherequirements andcosts ofthese import andexport licences?
Reply 57.
Inconsistence withtheCabinet Decree No.734of24October 1994, "OnLiberalization of
Export Operations" thelistofgoods forwhich export issubject toquotas andlicensing in1994includes
grains only. Agricultural export isexport duty-free. TheCabinet Decree No.285of3May1994, "On
Changes inRates ofImport Duty forSome Types ofGoods" establishes theratesofimport dutyfor
agricultural products toprotect domestic producers. Licences aregranted bytheMinistry ofForeign
Economic Relations forafeeequal to0.1percentofthevalue oftheexports. Licences areissued
onthebasisoftheapplications, theformofwhich isdetermined bytheMinistry ofForeign Economic
Relations ofUkraine. Acopyofthecontract isattached totheapplication andalsothedocument which
evidences thereceipt ofquota from theMinistry ofAgriculture mustbeattached. Thelicence issues
within three daysandthereason foranydenial ofalicence must beclarified inwritten form. This
decision canbeappealed inArbitration Court according totheCivil Procedure Code.
SeeReply 10.
Question 58.
Please describe anyfarm support programmes thatareavailable toUkrainian farmers.
Please provide thetypes, quantities, values andreasons foreach. How andwhen doesUkraine
plantophase outanysuchplans under itsmarket reform efforts?
Reply 58.
Tosocially protect thepopulation intheinflationary conditions theGovernment maysetextra
payments forsome products attheexpense ofbudgetary funds. Such extras forexample, areset
beginning from 1July1994 foratonofmilk, cattle andpoultry soldintheframework ofState
procurement. Their share intheproduct price is15percentto30percent.
SeeReplies 55,56.
Question 59.
Please explain howagricultural commodity producers qualify forgovernment sponsored
credit programmes. Arefunds allocated onestablished credit worthiness standards orareother
criteria used? Please provide thedifference between interest rates andloanterms forgovernment-
sponsored versus commercial loans? What isthedefault rateongovernment-sponsored loans
tocommodity producers?
Reply 59.
Thecredits totheagro-industrial complex enterprises andorganizations aregiven at30percent
interest forthemtoproduce, store, process andsupply agricultural commodities under Statecontracts
andorders and,incompliance withtheLetter oftheNational Bank of5July1994, atapproximately
250percentinterest forimplementation oftheprogrammes other thanthose carried outunder StateWT/L/20
Page45
contracts andorders. Therequirements ofthisLetter astothelower interest donotextend tothose
agreements thatwereconcluded orprolonged before 1July1994. Theterms ofsuchagreements may
bechanged ifagreed upon between thetwosides. Ifabank doesnotconsent tothedecrease inthe
interest tobepaidforthecredit obtained before 1July1994, thentheterms ofthecredit agreement
should beobserved. Enterprises canbeexempt from finestobeimposed duetodefault ofpayment
asenvisaged intheLetter.
Taxation Regime
Question 60.
DoesUkraine 'staxation regime assess rates forforeign-owned establishments higher than
Ukraine-owned firms?
Reply 60.
No.Moreover, foreign investors aregranted preferential taxation terms incompliance with
theLaws ofUkraine (Decree oftheCabinet ofMinisters "OnForeign Investments Regime" of
20May1993, No.55-93, LawofUkraine "OntheState Programme ofPromotion ofForeign
Investments" of19December 1993, Resolution oftheCabinet ofMinisters ofUkraine "OnMeasures
toImplement theLawofUkraine ontheState Programme ofPromotion ofForeign Investments" of
31March 1994, No.203).
Question 61.
Please provide acomplete listbyHSnumber oftheimports thataresubject tothe
10percentexcise tax.Isthesame excise taxapplied todomestically produced equivalent products?
Reply 61.
SeeReply 30.Also, below listed aretheproducts subject to10percentexcise tax.
Ordinary wines (HS2204, 2205):
domestically produced 10%
imported 200%
Filterless andfilter cigarettes, tobacco-pipe
tobacco (24022000, 24029000, 24031000):
domestically produced 10%
imported 150%
B&W andcolour TVsets,forbothcategories 10%.WT/L/20
Page46
IV. Other Policies Related toForeign Trade
Exchange Controls andSystem ofSettlements
Question 62.
Please describe howUkraine complies withtheprovisions ofGATT Article XV.
Reply 62.
TheUkrainian Cabinet Decree "OnCurrency Regulation System andExchange Control" of
19February 1993, (Article 7)establishes thatforeign currency maybeusedasamedium ofpayment
forpayments between residents andnon-residents.
Since on28June1994, Ukraine officially passed totheGATT Secretariat the"Memorandum
onUkrainian Foreign Trade Regime", which isaconstituent partoftheGATT/WTO accession
procedure, Ukraine hasundertaken tofulfiltherequirements ofArticle XVoftheGeneral Agreement
("Exchange Arrangements").
Question 63.
DoanyUkrainian laws orregulations differentiate between exporters andother firms
incurrency exchange rates, availability, orinother manners?
Reply 63.
According tothelegislation inforce, exporters ofanyorganization andlegal forms and
irrespective oftheform ofownership arenotdifferentiated between asfarascurrency exchange rate
isconcerned i.e.theyallenjoy equal economic rights. Astoimporters, theenterprises maybuyhard
currency atanofficial exchange ratetoeffect payments under contracts onsome types ofproducts
(The decision oftheGovernmental Committee onProblems oftheUseofHard Currency). This
mechanism willbeeffective untiltheofficial Ukrainian Karbovanets exchange ratematches (approaches)
themarket one.
Question 64.
What areUkraine 'splans regarding theunification ofofficial andmarket exchange rates
andmandatory exchange requirements?
Reply 64.
According tothePresidential Decree of22August 1994, "OnPerfection ofCurrency
Regulation",agradualconvergenceandunificationoftheofficialandmarketexchangeratesofUkrainian
Karbovanets wasconcluded on1November 1994.
SeeReply 129.WT/L/20
Page47
5. Investment Policies
Question 65.
Arethere anymeasures under current lawsthatareinconsistent withtheUruguay Round
TRIMs Agreement orArticle IIIoftheGATT? Ifso,what areUkraine 'splans tobring them
intocompliance?
Reply 65.
Weconsider thattherearenocontradictions withtheAgreement onTrade-Related Investment
Measures.
Thecurrent lawoninvestment policy inUkraine, inparticular theDecree "OnForeign
Investment Policy" stipulates thatforeign investments, likeanyother economic activity, aregoverned
bytheprovisions oftheNational Investment Policy withsome exceptions specifically provided for
intheDecree "OnForeign Investment Policy" and"other lawsandinternational agreements" ofUkraine.
ThelawofUkraine allows thedesignation ofareas where noforeign investors orenterprises are
allowed or,ifallowed, theiractivities arelimited forreasons ofnational security (Decree "OnForeign
Investment Policy", Clause 7).Nosuchdesignations havebeenmade todate.
Contributions offoreign investments intotheownership fundofanenterprise which hasforeign
investment willbeexempted fromcustoms andimport taxes. (Decree "OnForeign Investment Policy.)
Thecreation ofenterprises which include foreign investors willbegoverned bythesame
regulations thatcover theestablishment ofdomestic enterprises. (Clauses 19through 26.)
Astothetradeintheinternal Ukrainian market, itshould beemphasized thatparticular measures
ofState regulation ofprices forparticular goods willapply onequal terms tobothresidents and
non-residents. There arenominimum required investment levels inorder toobtain national treatment.
Question 66.
WillUkraine commit tomaking consistent withGATT TRIMs provisions anyfuture export
incentives intheform oftaxes andcustoms treatment?
Reply 66.
Yes,assoonaseconomic conditions permit. Currently, theexport ofproducts manufactured
bycompanies withforeign investment arecovered bythestandard provisions oftheLaw"OnForeign
Trade". Theexport ofproducts manufactured byenterprises withforeign investment shallbegranted
acertificate onthisenterprise 'sproduct thatwillexempt itfromeither quota orlicence requirements.
Itshould bepointed outthatUkraine intends tocreate apermanent programme tostimulate
exports byenterprises withforeign investments.
Question 67.
Does theState Programme ofEncouragement ofForeign Investments inUkraine of1993
apply toexisting investment ornewinvestment only?WT/L/20
Page48
Reply 67.
TheLaw"OntheStateProgramme ofProtection ofForeign Investments inUkraine" extends
toallestablished enterprises withforeign investments andthosetobeestablished inthefuture. However,
suchenterprises withforeign investments thatbidforpreferential duties andguarantees provided for
bytheProgramme mustestablish theirparticipation inahigh-priority industry and,otherwise, meet
thecriteria established bytheProgramme.
TheStateProgramme onEncouragement ofForeign Investments inUkraine of1993 applies
toallforeign investments carried outinUkraine prior toandafteradoption ofthisLaw.
TheState Programme ofEncouragement ofForeign Investments States clearly the
following high-priority spheres forforeign investments tobecarried out:
Agro-industrial complex;
lightindustry [fibres, textiles, apparel, footwear];
timber industry;
machine building industry;
medical equipment production;
metallurgy andproduction ofmaterials;
fuelandpower production complex;
transport infrastructure;
communications;
chemical andpetroleum industry;
social infrastructure.
Incompliance withtheProgramme, foreign investors putting capital intotheabove designated
sectors, provided thattheymeetparticular qualifying requirements, willhavetherightto:
faster equipment depreciation standards;
longer income taxdeduction termby1,2,3or5years depending onthelevelofinvestment
(Decree "OnForeign Investment Policy," Clause 31).
Question 68.
Isnational treatment applied toinvestors across theboard inalleconomic sectors? Please
provide alistofallexceptions tonational treatment andthelegal basis forthese exceptions.WT/L/20
Page49
Reply 68.
Incompliance withtheDecree oftheCabinet ofMinisters "OntheRegime ofForeign
Investments," Section II,Clause 7,anational regime ofinvestment andeconomic activities hasbeen
established astoforeign investments andtheforms fortheirimplementation except forcases provided
forbytheDecree. Thenational regime canalsobemodified byinternational agreements, "On
Encouragement andMutual Protection ofInvestments" which canbeconcluded onareciprocal basis
between States regulating theuseofthisregime andexceptions toit.
Such exceptions wereprovided forintheAgreement between Ukraine andtheUnited States
ofAmerica "OnEncouragement andMutual Protection ofInvestments" andtheAgreement between
Ukraine andCanada "OnEncouragement andProtection ofInvestments". Thus, thecontracting parties
enjoy therighttoestablish orpreserve exceptions within thescope ofsome spheres andproblems related
tonational interests andtoreduce these exceptions toaminimum.
Thelegal basis forsuchexceptions isformed bytheState Programme ofPrivatization that
regulates therights ofbothdomestic andforeign enterprises related toprivatization andtheLand Code
thatprohibits foreign citizens from owning land.
Also, theAgreement between theUkrainian andVietnamese Governments "OnEncouragement
andProtection ofInvestments" hasnotestablished thenational regime atall.Investment activities
areregulated bytheUkrainian party subject totheDecree oftheCabinet ofMinisters "OntheRegime
ofForeign Investments" andbytheVietnamese party subject totheirlawsonforeign investments.
Insomecasesforeign investors getbetter thannational treatment under thebilateral agreements.
Question 69.
Which government bodies playaroleinregulating foreign investment? Please describe
theareas overwhich eachhasjurisdiction.
Reply 69.
Amajor body handling theproblem ofinvestment policy istheMinistry ofEconomics that
works outthedirections ofinvestment policy forparticular branches ofthenational economy; supervises
theimplementation ofinvestment programmes required bytherestructuring ofthenational economy;
anddraws uprecommendations onattracting foreign investments intoUkraine, asawhole andfor
particular regions andbranches oftheeconomy. Italsoanalyzes andforecasts theprocess ofinvestment
anditssocial andeconomic effects. Apart from thisMinistry, theMinistry ofForeign Economic
Relations alsotakes partintheformulation andimplementation ofthepolicy onforeign investment.
Itregisters theforeign representatives andderives conclusions based onthedataoftheiractivities.
Inaddition, theFinance Ministry issues certificates toforeign investors granting themtherighttoobtain
thebenefits provided forbytheprogramme ofencouragement offoreign investments.
Question 70.
What recourse doforeign investors haveinthecaseofdisputes withUkrainian partners
thatarealsoState enterprises? What aretheremedies incases where government policies constitute
indirect expropriation?WT/L/20
Page50
Reply 70.
Anydisputes between foreign investors andthegovernment overState regulation offoreign
investments willbetreated bytheUkrainian courts incompliance withtheDecree oftheCabinet of
Ministers "OnForeign Investments." However, ifagreed upon between theparties andifprovided
forbytheinternational agreement onprotection offoreign investments which covers theparticular
investment, thedispute canbeheard inarbitration (commercial) courts including foreign ones. Thus,
theinternational agreements "OnProtection ofInvestments" willregulate thedisputes between an
investor andanother partytothecontract. These agreements designate theprocedures forthesettlement
ofthese disputes.
TheDecree oftheCabinet ofMinisters "OntheRegime ofForeign Investments" (clauses 9
and10)establishes themeasures toprotect theinvestors 'rights inthecaseofanindirect confiscation.
Inthefirstplace, these measures aredesigned toensure against forced takings andunlawful actions
ofgovernmental bodies andtheirofficials, aswellascompensation foranydamage suffered byan
investor. Also, themeasure ofcompensation foranydamage isgoverned byaparticular provision
oftheinternational agreement, "OnEncouragement andMutual Protection ofInvestments."
Question 71.
What role, ifany,doestheAgency forInternational Cooperation andInvestments play
inassisting prospective andcurrent investors ingaining necessary government approvals related
totheir investments? Does ithave aroleindispute mediation?
Reply 71.
Atpresent, theUkrainian government istaking measures todelegate theinvestment activity
functions totheMinistry ofEconomics andtheMinistry ofForeign Economic Relations. Earlier,
thesefunctions werefulfilled bytheAgency ofInternational Cooperation andInvestments. Thisagency
doesnothavearoleindispute mediation.
Question 72.
Please describe anygovernment support, State aids, taxandfiscal incentives, orother
measures designed toencourage investment, foreign orotherwise, inproduction geared foror
dedicated toexport markets.
Reply 72.
SeeReplies 1,4.
6. State Procurement
Question 73.
Please confirm thatinallcases ofState procurement, foreign suppliers enjoy thesame
rights asdomestic suppliers. What arethese rights? Dotheyextend across allsectors ofeconomic
activity?WT/L/20
Page51
Reply 73.
Inthecaseofgovernment procurement, foreign suppliers willbegoverned bythesame laws
asdomestic suppliers. Exceptions extend onlytospecial purchases ofdefense goods, subject tospecial
regulations oftheUkrainian government. Inthecaseofgovernment procurement, theproducts provided
byforeign suppliers must meet Ukrainian standards andquality requirements. There arenoother
constraints onforeign suppliers.
Question 74.
What procedures areinplace toensure thatState procurements aretransparent and
competitive?
Reply 74.
Thestandards related togovernment procurement (TheDecree ofthePresident, Resolution
oftheCabinet ofMinisters "OntheFormation andDistribution ofState Procurement Orders") will
bepublished. These documents provide forcompetitions totakeplace between would becontractors
inwhich anyenterprise canparticipate irrespective oftheirform ofownership.
Question 75.
Does Ukraine intend tobecome amember oftheWTO Agreement onGovernment
Procurement?
Reply 75.
Yes.
Question 76.
How soondoesUkraine expect thatprivatization ofState owned trading enterprises will
becompleted? What portion ofUkraine 'strade, import andexport, isaccounted forbyState-
owned enterprises? What isthisportion ifentities granted exclusive orspecial privileges toengage
intrade areadded?
What percentage ofindustrial imports enter Ukraine through aState trading entity?
Reply 76.
Atpresent,3.7thousandtradeandpubliccateringenterprisesareprivatized(totalvalueamounted
to1,009.2 bln.karb., including 281.3 bln.karb. through privatization certificates. Alarge number
ofthetrade andpublic catering enterprises (upto20percent) havebeenleased withthepossibility
ofredemptiontoownership.YettheResolutionoftheCabinetofMinistersNo.604of31August1994,
"OnPerfection oftheMechanism ofPrivatization inUkraine andStrengthening ofControl Over Its
Implementation" suspended theprivatization ofthetrade enterprises.
Allowing foranincomplete privatization (20percent) carried outin1994 andthefactthat
theprivatization programme for1995 hasnotbeenadopted yet,itisnotpossible topredict thedate
ofcompletion ofprivatization.WT/L/20
Page52
ForJanuary-June 1994 State owned trading enterprises accounted forabout 8.5percentof
totalexports atUS$200 million. Adding trade byentities granted exclusive orspecial privileges to
engage intraderaises thisnumber toabout 12percent. Thepercentage oftotalimports through State
trading entities isnotmore than15percent.
Question 77.
Does Ukraine maintain anyState importing agencies? Ifso,howdodomestic wholesale
prices foragricultural commodities compare with import prices? Assuming State trading
corporations import atworld market prices thensellatlocal prices, howistheprice differential
accounted for?How aretheprofits usedandlosses funded?
Reply 77.
Yes.However, currently there arenosignificant levels ofagricultural imports byState trading
companies. Aswasspecified intheMemorandum ontheForeign Trade Regime ofUkraine, the
regulations concerning theestablishment oftheStateimporting agencies arespelled outintheDecree
oftheCabinet ofMinisters "OnManagement ofOrganizations inStateProperty" of15February 1992
and"OnRegulation ofOperations ofOrganizations Involving State Enterprises Participation" of
31December 1992.
Until recently, theprices foragricultural products were subjected toState regulation. In
conformity withthePresidential Decree "OnMeasures toDecelerate theGrowth ofPrices" No.508
of3November 1993, thefinalselling price must notexceed thesumoftheproduction costplusa
55percentmarketing margin. Pricing offoreign-origin products issubject onlytomarket conditions.
Question 78.
Please giveseveral examples ofState procurement ofgoods forreprocessing andsaleor
resale tothegeneral population. Does thegovernment ortheenterprise settheexport price? On
what basis istheexport price set?Does thegovernment ortheenterprise setexport volumes?
Onwhat basis areexport volumes set?
Reply 78.
From theinstitutional point ofview, theterm"government procurement" wasunderstood
tomean, untilrecently, asystem ofState purchases effected under State contracts andorders. The
procedure ofthegovernmental export contract isthefollowing: theproducer obtains acredit from
theFinance Ministry andsellstheproduced goods attheinternal pricetotheforeign tradeorganization
which isauthorized toexport them forworld price. After deducting itscommission feestheforeign
trade organization transmits theresulting export earnings totheState exim bank. Theobjective of
theexport carried outonStatecontracts istofinance essential imports through convertible currency
earnings from export oftheproducts which could bemarketed relatively easily attheworld market
andcontrolled bytheGovernment.
Theobjective ofexports onStateorders istofulfilgovernmental tradecommitments resulting
from inter-governmental agreements. Inaddition, theenterprises concerned haveaccess toimports
required forexport production. Incompliance withtheprogramme ofeconomic reform coordinated
withtheIMFandWorld Bank, thissystem oftheexport contract andorder willbetransformed, inWT/L/20
Page53
thebeginning of1995, intothePublic Procurement System meeting requirements oftheGovernment
Procurement Agreement.
AlsoseeReply 49.
Question 79.
Please provide theestimated volume ofinter-enterprise trade inindustry andagriculture.
Issuchtrade subject tomarket forces orgovernment regulation? Please elaborate ingood detail
howthistrade affects thetransition tomarket economic structures. Does inter-enterprise trade
provide hidden orimplicit subsidies toindustry oragriculture?
Reply 79.
Thetradebetween enterprises inindustry andagriculture iscarried outonthebasisofdeliveries
atfreemarketpricesandisnotcontrolledbytheGovernment.Itcompletelyconformstomarketeconomy
relations. Thisformexcludes thehiding ofsubsidies. During thistransitional period itisnotpossible
tomake avalid estimate astothelevelofthistrade because ofthelackofdata.
8. Special Economic Zones
Question 80.
Please describe anygovernment support, State aids, taxandfiscal incentives, orother
measures designed toencourage investment andproduction inspecial economic zones (SEZs).
Arethese benefits contingent onexport? Arefirms inSEZs subject toforeign exchange balancing
requirements? Arefirms inSEZs subject toforeign exchange import substitution ordomestic
content requirements? How aredomestic sales from SEZs taxed? What aretheapplicable tax
rates? Aredomestic sales from SEZs subject totaxes thatnon-SEZ domestic sales arenot? If
so,please describe these taxes.
Reply 80.
Actually, atpresent there arenospecial economic zones.
9. Policies Concerning Intellectual Property Rights
Question 81.
HowdoesUkraine'scurrentregulationandenforcementofIPRmatchWTOrequirements?
Reply 81.
SeeReply 83.
Question 82.
What subject matter isexcluded from patentability under Ukrainian law?WT/L/20
Page54
Reply 82.
Incompliance withtheLaw"OnProtection ofRights onInventions andUseful Models"
(Article 3,clause 3)thefollowing subject matters areexcluded from patentability:
Discoveries, scientific theories andmathematical methods;
economy organization andmanagement methods;
plans, conventional signs, schedules, rules;
methods ofmental operation ;
computer programmes;
artistic design results;
layouts ofintegrated circuits;
plant varieties andanimal breeds.
Question 83.
IsUkrainian lawcurrently inconformity withtheTRIPS Agreement? Ifnot,what plans
doesUkraine have tobring itssystem intoconformity, andinwhat timeframe?
Reply 83.
ThecurrentUkrainianpatentlegislationisbasedontheModelPatentLaw,whichwasdeveloped
bytheWorld Intellectual Property Organization. It,asawhole, complies withtheconditions ofTrade-
Related Aspects Agreement. TheLawcontains anarticle oninternational agreements, according to
which iftherules, established byaninternational agreement ofUkraine differ fromtherules, established
byUkrainian legislation, thentheinternationally agreed rules areapplied (Article 3).
Question 84.
Does Ukrainian patent lawprovide alltherights listed inArticle 28ofTRIPS withrespect
toproduct andprocess patents? Ifnot,what rights arenotavailable?
Reply 84.
TheLawprovides granting ofalltherights, which arecitedinArticle 28ofTrade-Related
Aspects Agreement (Article 23).
Question 85.
Arethere anyrestrictions onapatent owner 'srights toassign, transfer, licence rights under
apatent?
Reply 85.
There arenorestrictions onapatent owner 'srighttoassign andtransfer rights.WT/L/20
Page55
Question 86.
Under whatconditions maycompulsory licences, including those forusebythegovernment
orthird parties authorized bythegovernment, begranted? Will modifications beneeded to
implement theprovisions outlined inArticle 31ofTRIPs?
Reply 86.
Apatent owner isobliged togrant anallowance (togrant alicence) foruseofaninvention
(oruseful model) toanowner ofalater-dated patent, iftheinvention (oruseful model) ofthelatter
isdesigned toachieve another purpose orpossesses substantial technological-economic advantages and
cannot beusedwithout infringement ofthefirstowner 'srights. Atthis,granting ofsuchanallowance
maybeconditioned byappropriate allowance fromthelater-dated patent owner 'sside,which isobliged
togrant anallowance, ifhisinvention (useful model) improves theinvention (useful model) ofthe
earlier patent owner orisdesigned toachieve thesame purpose. Theallowance isgranted inthescope
essential foruseoftheinvention (useful model) bythepatent owner, which demanded suchanallowance.
Disputes regarding licences aresettled judicially.
Ukrainian regulations toimplement theprovisions, described inArticle 31ofTrade-Related
Aspects Agreement, neednochanges.
Question 87.
What isthesizeoftheexamining coreinUkraine 'sPatent Office? Howmany applications
aresubmitted annually? What istheaverage pendency period foranapplication?
Reply 87.
Examination ofapplications forgranting apatent inUkraine forinventions anduseful models
isexecuted bythePatent Examination Centre (PEC),consisting of40-staff persons. Patents (patent
deeds) areexecuted andissued bytheRegister Board oftheState Patent Office ofUkraine.
309patent applications werefiledin1992, 10,596 in1993, 12,718 in1994. Actually thePEC
doesnotyetexecute examinations. Application examination isconducted within eightto10months.
*Question 88.
How many patents have been issued todate? Inwhat technological categories?
Reply 88.
Atthistimeabout 7,200 patents forinventions areregistered.
Question 89.
How longhasthepatent office been inoperation?
Reply 89.
TheState Patent Office ofUkraine isinoperation since thebeginning of1992.WT/L/20
Page56
Question 90.
What opportunities existforjudicial review ofadecision torevoke apatent, asrequired
byArticle 32ofTRIPS?
Reply 90.
Opportunities forjudicial review ofpatent revocation arestated inArticles 28and30oftheLaw:
Article 28."Patent revocation".
1. Apatent mayberevoked fullyorpartially inacaseof:
Disparity between patented invention (useful model) andconditions forpatentability, defined
bythisLaw;
presence offeatures ininvention (useful model) claims, which wereabsent intheapplication
filed;
infringement ofclause 2,Article 32ofthisLaw.
2. Anyperson iseligible tosubmit objection against apatent totheAppeal Council during six
months afterpatent grant notice publication date. Itmustbeexamined intheAppeal Council during
sixmonths afterthedateitwasreceived. Apatent owner mustbeacquainted withtheobjection. The
Appeal Council examines theobjection intheframes ofreasons stated init.Theperson, which submitted
anobjection, aswellasthepatent owner mayparticipate initsexamination. TheAppeal Council verdict
maybeappealed judicially.
Ifobjection against patent granting wasnotreceived intheAppeal Council during theterm
stated, thepatent mayberevoked judicially only.
Thepatent oritspart,which arerevoked, areconsidered asvoidfromthepatent grant notice
publication date".
"Article 30.Disputes settled judicially.
1. Thedisputes, related toapplication ofthisLaw, aresettled byacourt, oracourt ofarbitration
asitisestablished byUkrainian legislation.
2. Courts,accordingtotheirjurisdiction,examinethedisputesconcerning:authorshiptoinvention
(useful model); determination ofpatent owner; infringement ofpatent owner 'sproperty rights; entering
andexecution oflicence agreements; rightforprevious use;inventor remuneration; recompenses.
Courts examine alsoother disputes, related toprotection ofrights, given bythisLaw".
Question 91.
Please provide adescription ofUkraine 'slawsoncopyright protection. What works are
covered? What isthetermofprotection? Iscopyright protection afforded onanational treatment
basis, and,ifitisnot,what aretheexceptions?WT/L/20
Page57
Reply 91.
Ukraine 'sLaw "OnCopyright andAssociated Rights" passed bytheSupreme Rada on
23December 1993, wasenforced onthedayofitspublication, 23February 1994, andwonpractical
approval oftheWorld Intellectual Property Organization (WIPO).
Incompliance withArticle 5ofthesaidLaw, protection isprovided forworks ofscience,
literature andarts,including:
1. Written literary works offictional, scientific, technical orpractical nature (books, booklets,
articles, computer programmes etc.);
2. Orations, lectures, speeches, sermons andother oralworks;
3. Musical works withorwithout words;
4. Dramatic andmusical dramatic works, pantomimes, works ofchoreography andother works
created forstage presentation;
5. Audio-visual works;
6. Sculptures, paintings, drawings, engravings andother pictorial works ofart;
7. Architectural works;
8. Photographs;
9. Works ofapplied artiftheyarenotprotected byaspecial lawonindustrial property;
10. Illustrations,maps,plans,sketches,plasticworkspertainingtogeography,geology,topography,
architecture andother branches ofscience;
11. Adaptation forthestage ofworks mentioned inparagraph 1ofthisArticle andreworking of
folklore fortheatrical performance;
12. Translations, adaptations, arrangements andother kinds ofremaking orworks andfolklore
(derivative productions) without detriment totheprotection oforiginal works serving asabasis
forsuchworks;
13. Collections ofworks, collections offolklore adaptations, encyclopedias andanthologies,
collections ofcommon dataincluding thedatabases andother composite works, provided they
aretheresult ofcreative effort aimed atselecting, adjusting orregulating thecontents
without detriment totheprotection ofworks contained therein;
14. Other works.
ThesaidLawprotects bothpublished andunpublished works ofscience, literature andarts,
irrespective oftheirpurpose, genre, quality, sizeandaim(education, information, popularization,
entertainment etc.), andthemethod ofreproduction inoral,written oranyother form.
Incompliance withArticle 24ofthisLaw, copyright protection isensured during thewhole
oftheauthor 'slifeand50years afterhis/her death.WT/L/20
Page58
Copyrightisgrantedonanationalbasis.InkeepingwithArticle8,theauthor'srightisprotected
irrespective ofcitizenship andresidence, ifhis/her works havebeenfirstpublished orunpublished
butarepresent inanobjective form intheterritory ofUkraine.
Question 92.
Does Ukraine plantojointheBerne Convention? What changes inthecopyright law
would have tobemade tomeet therequirements oftheBerne Convention?
Reply 92.
Ukraine isplanning tojointheBerne Convention onProtection ofLiterary andArtistic Works.
Theproblem hadbeendiscussed withtheWIPO which resolved thatUkraine 'sLaw"OnCopyright
andAssociated Rights" wasfullyinlinewiththeBerne Convention requirements. Ukraine 'sState
Agency forCopyright andAssociated Rights (SACAR) hasprepared material forUkraine 'saccession
totheBernConvention; thematerial isbeing studied bytheForeign Ministry andwillthenbesubmitted
forconsideration bythePresident andSupreme Rada.
Question 93.
What changes inUkraine 'scopyright lawswould beneeded tomeet therequirements of
theTRIPS Agreement? What isthestatus ofefforts tobring Ukraine 'slawintocompliance with
TRIPS?
Reply 93.
TheUkraine 'sLaw"OnCopyright andAssociated Rights" meets therequirements stipulated
byChapter I,partII,oftheAgreement onAspects Concerning Trade inIntellectual Property Rights
(ACTIPR).
Question 94.
What system isinplace nowfortheenforcement ofcopyright, inbothcivilandcriminal
law? What istheaverage timeframe forlitigations ofcopyright infringement suits?
Reply 94.
On4February 1994, theSupreme Rada adopted theLaw"OnIntroduction ofChanges inthe
Civil Code oftheUkrainian RSR" which effected thefollowing amendments totheCivil Code:
"Article 472. Ukraine 'sLegislation onCopyright andAssociated Rights.
TheLawofUkraine protects personal (non-property) andproperty rights ofauthors andtheir
legalsuccessors, related tothecreation andutilization oftheworks ofscience, literature andarts
(copyright)andtherightsofperformers,phonogrammanufacturersandbroadcastingagencies(associated
rights).
Relations promoted bythecreation andutilization oftheobjects ofcopyright andassociated
rights areregulated bytheUkraine 'sLaw"OnCopyright andAssociated Rights" andother legislative
actsofUkraine".WT/L/20
Page59
Inview ofthepreparation oftheUkraine 'snewCriminal Code, on20January 1994, the
Ukraine 'sSACAR submitted totheAttorney General ofUkraine aproposal toformulate Article 136
oftheUkraine 'sCriminal Code inforce inthefollowing way:
"Article 136.Violation ofCopyright andAssociated Rights".
Unlawful reproduction ofworks andobjects ofassociated rights (counterfeiting), compulsive
authorship, misappropriation ofauthorship (plagiarism) arepunishable byuptofive-year imprisonment
orafinebetween 100and50,000 salaries established bytheUkraine 'slegislation".
Court proceedings against violation ofcopyright takeupfourtofivemonths ontheaverage,
while consideration ofcases involving additional expertise lastsnearly oneyear.
Question 95.
How aresound recordings, database compilations, andcomputer software protected?
Reply 95.
Incompliance withArticle 34ofthesaidLaw, manufacturers ofphonograms have an
exclusive righttoallow orprohibit theirreproduction, distribution ofcopies bywayoffirstsaleor
other kindofalienation, orbyleasing, hiring out,rental andother means oftransfer, regardless of
firstsale, aswellasalteration andimport ofphonograms.
Article 37oftheLawregulates theuseofphonograms issued forcommercial use.Such
phonograms maybeutilized without theconsent oftheirmanufacturers orperformers recorded therein
butwithdueremuneration incaseof:
1. Public useofphonograms;
2. Broadcast ofphonograms;
3. Transmission ofphonograms bywire.
Thecollection, distribution andpayment ofremuneration areeffected byoneoftheagencies
controlling therights ofprogramme manufacturers andperformers onacollective basis incompliance
withtheagreements between suchagencies.
Theamount ofremuneration andtheterms ofpayment arespecified byanagreement between
theuserofphonograms oranassociation ofsuchusers ontheonehandandtheagencies controlling
therights ofprogramme manufacturers andperformers ontheother hand.
Thesizeofremuneration issetforeachkindofphonogram application.
Incompliance withtheDirective oftheCEC(Council oftheEuropean Communities) onLegal
Protection ofComputer Programmes asof14May1991, Article 5oftheUkraine 'sLaw"OnCopyright
andAssociated Rights" stipulates thatdatabases andcomputer programmes betreated withdueregard
totherequirements ofthesaidCEC Directive.WT/L/20
Page60
Question 96.
How doesUkraine 'slawtreat rental rights? What works aresubject totherequirement
thatauthors andtheir successors intitlemayauthorize orprohibit thecommercial rental of
originals orcopies oftheir works?
Reply 96.
TheUkraine 'sLawcontains nosuchconcept as"leasing rights". Instead, Article 4usesthe
term"hiring out", meaning that"ownership rights" totheoriginal orcopy ofawork orphonogram
maybetransferred foracertain period withtheaimofderiving direct orindirect commercial benefit.
Used inthesameArticle istheterm"person inpossession ofcopyright andassociated rights" implying
"anauthor orperformer intheevent thatproperty rights arepossessed bytheauthor orperformer,
aswellasaphysical orlegalentity towhich property rights havebeentransferred".
Article 27oftheLawspeaks ofthetransfer (cession) ofcopyright: "Property rights maybe
transferred (ceded) bytheauthor oranother person inpossession ofcopyright toanother person.
Theauthor oranother person inpossession ofcopyright (licensor) mayalsogivealicence toanother
person (licensee) fortheuseofthework inaccordance withsuchalicence. Thetransfer (cession) of
copyright andtheissue ofalicence aretobeofficially registered inacopyright agreement".
Question 97.
What isthescope ofcompulsory licensing ofcopyrightable works? Under what conditions
would compulsory licences begranted?
Reply 97.
Article 39oftheUkraine 'sLawmakes aprovision foracollective control ofproperty rights:
"Tosecure property rights authors andpersons mayentrust control oftheirproperty rights ona
collective basistoagencies notauthorized toengage incommercial activities. "Such agencies operate
onthebasisandwithin theframework ofauthority voluntarily delegated tothembyauthors andother
personsinpossessionofcopyrightandassociatedrights".Theactivitiesofagenciesincontrolofproperty
rights onacollective basis arespecified inArticle 40oftheLaw, which, among other things, says
that:"Agencies which control property rights onacollective basismaybeauthorized toissuelicences
tousers ofworks andobjects ofassociated rights".
"Allclaimsofownershipthatmaybelodgedbypersonsinpossessionofcopyrightandassociated
rights against users asregards utilization oflicences aretobeconsidered byagencies which issue
suchlicenses."
Question 98.
What changes inUkrainian lawarenecessary forcompliance with TRIPs trademark
obligations? When willsuchchanges bemade?
Reply 98.
TheLaw"OnTrademark Right Protection". TheLawwasexamined intheWorld Intellectual
Property Organization (WIPO) andasawhole complies withtheTrade-Related Aspects. Amendments
totheLawarenotcurrentlyexpected.Inaddition,theLawincludesanarticleoninternationalagreementsWT/L/20
Page61
(Article 3),according towhich iftherules, established byinternational agreement ofUkraine, differ
from therules, which areprovided bytheUkrainian legislation, therules ofinternational agreement
areused.
Question 99.
Towhat extent dowell-known marks receive protection under theexisting law,andfuture
amendments, ifany? What isthedefinition andscope ofprotection ofawell-known mark?
Reply 99.
Well-known trademarks receive protection according toArticle 6oftheLaw: "Article 6.
Grounds forrefusal inprotection oftherights".
Question 100.
Towhatextent doesawell-known mark notregistered inUkraine receive protection? What
specific rights doestheowner ofanunregistered mark have?
Reply 100.
Amark cannot beregistered asatrademark, ifitisidentical orsimilar totheextent, thatit
maybeconfused, with:
- themarks, registered earlier orsubmitted forregistration inUkraine under another
person 'sname forsimilar goods andservices;
- marks ofother persons, ifthese marks areprotected without registration onthebasis
ofinternational agreements, where Ukraine isaparticipant;
- firm-names, which arewell-known inUkraine andbelong toother persons, which
obtained theirrights before theapplication wassubmitted totheOffice about similar
goods andservices;
- appellation oforigin, except forcases, when theyareincluded intothemark asnon-
protected elements andareregistered byperson 'sname, which havetherighttouse
thisname;
- certificate marks, registered asrequired.
Protection ofworld-known marks notregistered inUkraine isaccomplished according tothe
Ukrainian Law"OnRestriction ofMonopolism andPrevention ofUnfair Competition" (Article 7)
Question 101.
WhatistheroleoftheTrademarkRegistrarininfringementactions?Ishisapproval/opinion
required?
Reply 101.
Anauthorized executive body, being informed bytheState Patent Office ofUkraine about
thesaidinfringements, mayuseactions listed inArticle 164of"Ukrainian Code onAdministrativeWT/L/20
Page62
Infringements", according towhich "illegitimate useofinvention, process patent, industrial design,
trademark, service mark, collective trademark, firm-naming ormarking ofgoods entails afineofup
to50minimum salaries withforfeiture ofthegoods produced, instruments ofproduction andraw
materials orwithout it".According totheUkrainian Cabinet Decree thefineismade 10times higher.
Question 102.
What arethegrounds onwhich theregistrar mayrefuse toregister amark?
Reply 102.
Thegrounds fortherefusal ofmark registration maybedisparity between themark andthe
conditions forrightprotection granting, which areoutlined inArticle 5(Clause 1)aswellasthegrounds,
putforth inArticle 6.
"Article 5.Conditions forgranting rightprotection
1. Right protection isgranted tothemark, which doesnotcontradict public interests, principles
ofhumanityandmoralsandwhichdoesnotfallunderthegroundsforrefusalingrantingrightprotection,
established bythislaw."
"Article 6.Grounds forrefusal ingranting rightprotection
1. According tothisLawthesigns, thatcould notbegranted rightprotection, depict:
State insignias, flagsandemblems;
official names ofStates;
emblems, abbreviated orfullnames ofinternational intergovernmental organizations;
official control, guarantee andassay marks, stamps;
decorations andother distinctions.
Such signs maybeintroduced intothemark asnon-protected elements, ifthere isaconsent
ofproper authority ortheirowners.
2. According tothisLawthesigns which alsocould notbegranted rightprotection, aretheones,
which:
Have nodistinctive ability;
arewidely usedformarking ofgoods andservices ofsome kind;
indicate kind, quality, quantity, properties, purpose, value ofgoods andservices aswellas
place andtimeofgood production orsaleorgiving service;
aredeceptive ormaycause deception regarding goods, service orperson, which produces the
goods andprovides services;
arecommonly usedassymbols andterms.WT/L/20
Page63
Thesigns from paragraphs 2,3,4,6ofthisclause maybeintroduced intoamark as
nonprotected elements, iftheydonotdominate inthemark depiction.
3. Amark cannot beregistered asatrademark, ifitisidentical orsimilar totheextent, thatit
maybeconfused, with:
Marks, which wereregistered earlier orsubmitted forregistration inUkraine under another
person 'sname forsimilar goods andservices;
marks ofotherpersons, ifthesemarks areprotected without registration onbaseofinternational
agreements, where Ukraine isaparticipant;
firm-names, which arewell-known inUkraine andbelong toother persons, which obtained
theirrights before theapplication wassubmitted totheOffice forsimilar goods andservices;
appellation oforigin, except forcases, when theyareincluded intoamark asnon-protected
elements andareregistered under person 'sname, which have right tousethese names;
certificate marks, registered inproper order."
4. Signs which reproduce thefollowing, arenotregistered asmarks:
Industrial designs, rights onwhich belong toother persons inUkraine;
names ofwell-known inUkraine works ofscience, literature andartorquotations andcharacters
from them, works ofartandtheirfragments without consent ofcopyright owners ortheir
subsequent owners;
surnames,names,pseudonymsandderivativesfromthem,portraitsandfacsimileofwell-known
persons inUkraine without theirconsent."
Question 103.
Arethere minimum/maximum limits onpenalties fortrademark infringement?
Reply 103.*
SeeClause 4,Section IIofthisAddenda.
Question 104.
Does registration ofamark satisfy notice oftheexclusive right oftheright holder to
potential infringers? Does aright holder have togiveactual notice toaninfringer before the
infringer isliable? Orisregistration ofthemark sufficient?
Reply 104.
These questions areregulated byArticles 12and15oftheLaw:
"Article 12.Publications about certificate issueWT/L/20
Page64
1. TheOffice publishes initsofficial bulletin notices, defined byit,about certificate issue on
baseofdecision about mark registration andifthere isadocument about payment ofcertificate issue
duties.
Ifthedocument about payment ofcertificate issue duties isnotreceived bytheOffice during
three months after thedateonwhich anapplicant received decision about certificate issue, then
publication isnotimplemented andapplication isconsidered recalled.
2. After notice publication about certificate issue anyperson iseligible tobeacquainted with
application materials inaway, thatisdetermined bytheOffice."
"Article 16.Rights implied bycertificate
3. Certificate gives toitsholder right tobanforother persons touseregistered mark without
hisconsent, except forcases, when according tothisLawusing ofmark isnotconsidered tobe
infringement ofcertificate holder 'srights."
Question 105.
Forwhat period oftimearetrademark registrations valid? Mayregistration berenewed
indefinitely?
Reply 105.
Thisquestion isregulated byArticle 5:
"Article 5.Conditions ofthegranting ofrightprotection
Mark ownership iscertified bycertificate. Duration ofcertificate is10years afterdateof
application submission totheOffice andisextended bytheOffice onholder 'sapplication, submitted
during thelastyearofcertificate duration, every timefor10years. Theprocedure forextension of
certificate termisestablished bytheOffice. Effect ofcertificate isterminated before itstermunder
conditions, listed inArticle 18ofthisLaw."
Question 106.
Does Ukrainian lawcontain auserequirement tomaintain trademark rights?
Reply 106.
Thisquestion isregulated byArticle 17:
"Article 17.Duties implied bycertificate
Certificate holder isobliged tofairly useexclusive right, implied bycertificate. Ifamark
isnotusedorisnotsufficiently usedinUkraine during three years aftercertificate issue notice
publication dateorafterdate, when mark usewasterminated, anyperson mayturntoacourt (court
ofarbitration) withanapplication about termination ofcertificate effect before itsterm.
When examining thisquestion acourt (court ofarbitration) maytakeintoconsideration the
certificate holder 'sproofs, thatthemark wasnotusedowing tocircumstances beyond hiscontrol."WT/L/20
Page65
Question 107.
Does Ukrainian lawallow forregistration ofidentical orsimilar marks forthesame or
related goods todifferent parties?
Reply 107.
No,itdoesnot.These questions areregulated byArticle 6(Clauses 2,3):
"Article 6.Grounds forrefusal ingranting rightprotection. According tothisLawthesigns,
which alsocannot begranted rightprotection aretheones, which:
Have nodistinctive ability;
arewidely usedformarking ofgoods andservices ofsome kind;
indicate kind, quality, quantity, properties, purpose, value ofgoods andservices aswellas
place andtimeofgood production orsaleorgiving service;
aredeceptive ormaycause deception regarding goods, service orperson, which produces the
goods andgives services;
arecommonly usedassymbols andterms.
Thesigns from paragraphs 2,3,4,6ofthisclause maybeintroduced intoamark as
non-protected elements, iftheydonotdominate inthemark depiction.
Amark could notberegistered asatrademark, ifitisidentical orsimilar totheextent, that
itmaybeconfused, with:
marks, which wereregistered earlier orsubmitted forregistration inUkraine under another
person 'sname forsimilar goods andservices;
marks ofotherpersons, ifthesemarks areprotected without registration onbaseofinternational
agreements, where Ukraine isaparticipant;
firm-names, which arewell-known inUkraine andbelong toother persons, which obtained
theirrights before theapplication wassubmitted totheOffice about similar goods andservices;
appellation oforigin, except forcases, when theyareincluded intoamark asnon-protected
elements andareregistered under person 'sname, which havetherighttousethese names;
certificate marks, registered inproper way."
Question 108.
Istherecordation ofanassignment mandatory? Ifso,what aretheramifications ofnot
recording anassignment?WT/L/20
Page66
Reply 108.
Yes,rightassignment recordation ismandatory (Article 16,Clause 6):"Article 16.Rights
implied bythecertificate".
Mark ownership assignment contract andlicence contract areconsidered tobevalid ifthey
arecomposed inwriting andaresigned byparties. Saidcontracts enter intoforce regarding anyother
person aftertheirrecordation intheOffice only.
Question 109.
Towhat extent maydecisions ofthetrademark registrar beappealed inacourt oflaw?
Reply 109.
Decisions maybeappealed according toarticle 19,clause 2:
"Article 19.Certificate revocation
Anyperson maysubmit anobjection against certificate issue totheAppeal Council during
thesixmonths aftercertificate issue notice publication date. Theobjection mustbeexamined bythe
Appeal Council during sixmonths afteritisreceived. Certificate holder mustbeacquainted withthe
objection. TheAppeal Council examines theobjection inframes ofreasons stated init.Theperson,
whosubjected theobjection aswellasacertificate holder mayparticipate initsexamination. TheAppeal
Council decision maybeappealed judicially.
Iftheobjection against certificate issuewasnotreceived bytheAppeal Council during specified
term, thecertificate mayberevoked judicially only.
Revoked certificate oritspartareconsidered voidfrom application filing date.
Question 110.
What form ofprotection doesUkraine provide forindustrial designs? Does itexpect to
make anymodifications toitslawstoimplement theindustrial design provisions ofTRIPs?
Reply 110.
Under theUkrainian Law"OnIndustrial Design Right Protection" theownership ofindustrial
design iscertified bypatent.
Theduration ofanindustrial design patent is10years from thedateofapplication filing to
theOffice andisextended bytheOffice onpatent owner 'sapplication, butfornotmore thanfiveyears
(Article 5,Clause 5).
TheUkrainian Lawwasexamined bytheWorld Intellectual Property Organization (WIPO)
andcomplies asawhole withtheTrade-Related Aspects. Amendments totheLawarenotcurrently
expected.WT/L/20
Page67
Question 111.
Does Ukraine nowprotect layout designs? Arethere anychanges necessary toimplement
TRIPS? (Including obligations oncompulsory licensing, border control androyalties)? Inwhat
form isthisprotection provided?
Reply 111.
Incompliance withtheLaw"OnProtection ofRights onInventions andUseful Models"
(Article 3,clause 3)thefollowing subject matters areexcluded from patentability:
Layout designs.
Thissurely willrequire appropriate amendments inimplementing theTRIPS obligations.
Question 112.
Does Ukraine provide thefullrange ofrelief required byTRIPS, including injunctive
relief, damages, seizure anddestruction ofinfringing goods, provisional relief, border relief and
criminal sanctions? Ineachcase, indicate under whatlawsuchprotection isprovided, andwhether
amendments willberequired tofully implement Articles 41-61 ofTRIPS?
Reply 112.
SeeReplies 86and90.
Question 113.
Does Ukraine protect trade secrets? Ifso,inwhat form? Arechanges necessary to
implement theTRIPS obligations?
Reply 113.
Yesitdoes. Incompliance withtheLawofUkraine "OnCommercial Secrets" andtheLaw
ofUkraine "OnEnterprises inUkraine" of18September 1992(Article 30),theprotection ofcommercial
secrets makes anintegral partofthecomplex ofsecurity measures foraparticular enterprise. A
commercial secret isunderstood tobethedataontrade activities allowing certain preferences. Such
datashould beinpossession ofaprivate person. Exceptions aremade bythedatamaking upastate
secret, aswellassubjects ofintellectual property protected bythepatent andcopyright laws.
Question 114.
Does Ukraine haveanylawsthatwould fallintotheanticompetitive practices provisions
ofArticle 40ofTRIPS? Ifso,please specify?
Reply 114.
Noitdoesnot.WT/L/20
Page68
Question 115.
Arethere anyrestrictions onthelicensing ofintellectual property, oneither domestic or
foreign nationals?
Reply 115.
There arenosuchrestrictions.
V. Institutional Board ofTrade andEconomic Relations
1. Bilateral Agreements
Question 116.
Please provide information ontheagricultural provisions ofthefuture free-trade intent
withtheEU,especially howandwhen itwillbeimplemented andwhat preferences willbegiven
towhich EUproducts?
Reply 116.
TheAgreement onpartnership andcooperation between Ukraine andEUprovides fordiscussion
oftheestablishment ofafree-trade regime in1998orwhen Ukraine becomes amember oftheWTO.
Question 117.
Please provide anupdated listofcountries thatUkraine hasonbilateral ormultilateral
trade agreements. What arethespecific trade provisions granted through these agreements?
Reply 117.
Foreign economic relations withBaltic countries, Moldova, Belarus were based inthefirst
half1994 onthebilateral international basis. According totheacting legislation, exporters ofany
organization andlegalforms andirrespective oftheformofownership arenotdifferentiated between
asfarascurrency exchange rateisconcerned i.e.theyallenjoy equal rights.
Nowmore then93inter-State bilateral agreements andprotocols between Ukraine andregional
countries aresigned, ofthem31withBelarus, 30withMoldova, fourwithLatvia, 20withLithuania,
ninewithEstonia (66ofthem onintergovernmental level: 21,18,4,16,8,respectively).
Agreements ontradeandeconomic cooperation withaddenda onmutual supplies ofbasictypes
ofproducts (goods) for1994aresigned withalltheregional countries, except Estonia. Ofthisquantity
twoagreements andaprotocol were signed withLithuania:
Onfriendship andco-operation;
onencouragement andmutual protection ofinvestments;
ontrade andeconomic cooperation.
Two agreements were signed withEstonia:WT/L/20
Page69
Ontravelling ofdiplomatic passport holders;
oncooperation infields ofeducation, culture, science andtechnologies.
TheUkrainian Ministry ofCommunications andtheBelarus Ministry ofCommunications and
Informaticssignedthefollowingagreements:onproblemsofinterchange,posttransportationandmutual
arrangements forposttransportation andhandling; oncooperation inperiodicals delivery; onbuilding
offibre-optic communication lineGomel-Kiev.
TheNational Bank ofRepublic ofMoldova andtheNational Bank ofUkraine signed an
agreement onorganization ofmutual arrangements inconnection withintroduction ofnational currency
intheRepublic ofMoldova (Lei).
Inaddition, theGovernment formed andconfirmed thecomposition oftheUkrainian partof
bilateral Ukrainian-Moldovian, Ukrainian-Lithuanian andUkrainian-Estonian Intergovernmental
Commissions onTrade andEconomic Cooperation.
Thefree-tradeagreements,whichweresignedearlierwithBelarusandLithuania,arenotratified
bytheUkrainian Supreme Rada. Theproblem ofaccelerating theratification ofthese agreements is
urgent. Theagreement withBelarus isready forratification andwork onagreement withLithuania
isgoing on.
Inparticular, theRules ofOrigin andtheProtocol onExclusion from Free-Trade Regime,
which constitutes anintegral partoftheAgreement between theUkrainian Government andthe
Government ofLithuanian Republic onFreeTrade of4August 1993, weresigned withtheLithuanian
side.
Draft Protocol between theUkrainian Government andtheGovernment oftheLithuanian
Republic onTrade andEconomic Cooperation isworked outandpassed overtotheLithuanian Side.
Amechanism formutual arrangements andnational debtservice isbeing worked outbytheUkrainian
andBelarusian National Banks (theworks onthedebtliquidation project, initiated bytheBelarusian
side,aredirected bytheUkrainian Ministry ofFinance).
Draft agreements onencouragement andmutual protection ofinvestments aredeveloped and
forwarded totheMoldovian, Latvian andEstonian sides, thedraftwillbesenttoBelarus inthenearest
future.
Draft intergovernmental bilateral agreements oncooperation ofbordering Ukrainian and
Belarusian regions and,respectively, administrative-territorial unitsoftheRepublic ofMoldova are
forwarded totheBelarusian andMoldovian sides.
Thedeveloped Draft Agreement between theUkrainian Government andtheGovernment of
theRepublic ofMoldova ontrade andeconomic cooperation isunder examination inappropriate
ministries andoffices. Then, itwillbeforwarded toMoldova.
Thefollowing draft agreements, prepared bysome other ministries andoffices, were also
coordinated:
withBelarus:
Onlabour andsocial security ofexpatriate workers;WT/L/20
Page70
onmilitary-technical cooperation;
onconditions ofnational debtservice asaresult oftradeandeconomic relations in1992-1993;
onnon-commercial payments;
oncooperation inenvironmental protection;
withMoldova:
Oncooperation inthefieldofindustrial property protection;
onguarantee ofrights inthefieldofpensions;
onrights acknowledgement andregulations onownership relations forformer USSR property;
onhail-protective works inbordering regions;
onmutual acknowledgement ofstatelicences toconstruction activities issued bylicence centres
ofUkraine andtheRepublic ofMoldova.
Inaddition, draft agreements onforming ofintergovernmental Ukrainian-Belarusian,
Ukrainian-MoldovianandUkrainian-Latviancommissiononproblemsoftradeandeconomiccooperation
aredeveloped andsenttorelevant sides.
Work onexpansion ofbilateral cooperation inallbranches ofnational economy withregional
countries isgoing on.
Thefollowing factors willfacilitate intensification offoreign trade activities andprimarily
expansion oftrade andeconomic relations:
AccelerationofratificationofmultilateralagreementonfreetradewithinCIS,signedinMoscow
on15April 1994, bygovernments of12countries;
expansion ofmutual relation between Ukrainian banks andregional countries;
development offoreign-trade relations directly between economy subjects ofallownership
types;
further liberalization andsimplification ofexport-import operations between these countries;
stabilization ofcurrency-financial system inbothUkraine andformer USSR countries.
ListofAgreements Signed between Ukraine andSome Foreign States concluded withaDirect
Mediation oftheMinistry ofForeign Economic Relations ofUkraine
State Trade Investment Mixed
agreement agreement commission
Croatia 00.05.94 - -
Hungary 31.05.91 11.10.94 22.05.92
Czechoslovakia 30.07.91 - -WT/L/20
Page71
State Trade Investment Mixed
agreement agreement commission
Poland 04.10.91 12.01.93 12/01/93
Cuba 20/12.91 - -
Greece 15.01.94 31.08.94 31.08.94
Vietnam 23.01.92 - 17.11.93
India 27.03.92 - 04.94
Iran 26.04.92 - -
Turkey 02.05.92 - -
USA 06.05.92 OPIC 05.03.94
05.03.94
Finland 14.05.92 14.05.92 -
Mongolia 18.05.92 05.11.92 05.11.92
Estonia 26.05.92 - 06.07.93
Romania 28.07.92 - 19.04.94
Georgia 06.08.92 - -
China 08.08.92 31.08.92 31.10.92
Bulgaria 05.10.92 - 11.03.93
Denmark 14.06.94 23.10.92 -
Russian 24.05.93
Federation
(Foreign trade)
Great Britain 14.06.94 10.02.93 -
Germany 14.06.94 15.02.93 -
Egypt 24.12.92 24.12.92 24.12.92
Belarus 16.11.92
(Foreign trade)
Moldova 20/03.93 - -
PRC 15.06.93 - 08.06.94
Algeria 01.07.93 - -
Lithuania 04.08.93 08.02.94 -
(Foreign trade)
Slovak
Republic 26.08.93 - -
Austria 31.08.93 - -
Uzbekistan - 20.02.93 -
Kazakhstan 23.12.93 - -
Kirgiziya
Azerbaijan 30.12.93
Turkmenistan 08.02.94
Tunisia 07.12.93
Czech
Republic 17.03.94 17.03.94
Canada 31.03.94
France 14.06.94 03.05.94
Spain 14.06.94
Italy 14.06.94
Portugal 14.06.94
Ireland 14.06.94
Netherlands 14.06.94 14.07.94WT/L/20
Page72
State Trade Investment Mixed
agreement agreement commission
Belgium 14.06.94
Luxembourg 14.06.94
Israel 16.06.94
Armenia 07.10.94 07.10.94
(Foreign trade)
Question 118.
Please provide information onallcurrent orplanned trade agreements withFSUcountries.
Reply 118.
Listofbilateral current andplanned agreements between Ukraine andTranscaucausian and
Central Asian States.
(asof25October 1994)
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
Azerbaijani Republic
1. Agreement between
Government and
Azeri Government on
FreeTrade (draft).Regime: free
trade, No
exclusions.
Noduties,
taxes nor
charges.
2. Agreement between
Ukrainian
Government and
Azeri Government on
trade andeconomic
cooperation for1994.VicePrime
Minister -
Shmarov.30December
1993, Kiev31December 1994 Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according
Add. No.1
andNo.2.
3. Agreement between
Ukrainian
Government and
Azeri Government on
trade andeconomic
cooperation in1995
(draft).Products and
goods supply
defined in
Add. Nos1
and2.
Exemptions
from export
andimport
duties for
supplies
according to
Add. Nos1
and2.WT/L/20
Page73
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
4. Agreement on
interbank settlements
between Ukrainian
andAzeri National
Banks inconnection
withintroduction of
Azeri national
currency.Deputy
Administrative
Head -
Mityukov18March 1994,
KievNotdefined Defines
mechanism
formutual
settlements.
Republic ofGeorgia
1. Agreement between
Ukrainian
Government and
Georgian Government
onFreeTrade (draft).Regime: free
trade, no
exclusions.
Noduties,
taxes nor
charges.WT/L/20
Page74
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
2. Agreement on
development oftrade
andeconomic
cooperation. Between
Ukraine andGeorgian
Government.PMFokin 6August 1992
Tbilisi5years Most
favourable
treatment
3. Protocol to
Agreement on
development oftrade
andeconomic
cooperation between
Ukrainian and
Georgian Government
of6August 1992 on
mutual support of
products andgoods in
1994.Acting Prime
Minister13April 1994,
KievTo
31December 199
4Supplies of
products and
goods
according to
Add. Nos. 1,
2,3and4.
Supplies
according to
AddNos. 3
and4areon
clearing base
andare
exemptions
from export
andimport
duties.
4. Protocol to
Agreement on
development oftrade
andeconomic
cooperation between
Ukrainian and
Georgian Government
of6August 1992 on
mutual supplies of
products andgoods in
1995 draft.Supplies of
products and
goods
according to
Add. Nos. 1
and2are
exempted
from export
andimport
duties, taxes
andcharges.
5. Agreement on
settlement
organization between
Ukrainian and
Georgian National
Banks in1994.National Bank
ofUkraine13January 1994
KievTo
31December 1994Defines
mutual
settlement
mechanism.
Republic ofArmenia
1. Agreement between
Ukrainian
Government and
Armenian
Government onFree
Trade.Prime
Minister -
Masol7October 1994 Notdefined Regime-free
trade, no
exclusions.
Noduties,
taxes nor
charges.WT/L/20
Page75
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
2. Agreement between
Ukrainian
Government and
Armenian
Government ontrade
andeconomic
cooperation in1994.VicePrime
Minister -
Landyk24December
1993
Ashgabat31December 1994 Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
3. Agreement between
Ukrainian
Government and
Armenian
Government ontrade
andeconomic
cooperation in1995.Prime
Minister
Masol7October 1994
Kiev31December 1995 Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
Ukrainian
State
Committee on
Resources and
Armenian
Ministry of
Material
Resources are
responsible
forthe
supplies.
4. Agreement on
settlement
organization between
Ukrainian and
Armenian National
Banks in1994.Deputy
Administrative
Head -
Mityukov23September
1994Notdefined Defines
mutual
settlement
mechanism.
Republic ofKazakhstan
1. Agreement between
Ukrainian
Government and
Kazakhi Government
onFreeTrade.ForUkrainian
Government -
Masol17September
1994
AlmatyNotdefined Regime-free
trade, no
exceptions.
Noduties,
taxes and
charges.WT/L/20
Page76
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
2. Agreement between
Ukrainian
Government and
Kazakhi Government
ontrade and
economic cooperation
in1994.ForUkrainian
Government -
Zvyagilskyi23December
1993,
Ashgabat31December 1994 Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
3. Agreement on
settlement
organization between
Ukrainian and
Kazakhi National
Banks and
Governments in1994.
(draft)Acting Prime
Minister
Zvyagilskyi -
Head of
National Bank
Yushchenko23September
199431December 1994
4. Addendum No.1to
Agreement on
settlement on
organization and
Kazakhi National
Banks and
Governments in1994
of20January 1994.FirstDeputy
Head of
Ukrainian
National Bank
Veselovskyi2September
1994,
Almaty
5. Agreement between
Ukrainian
Government ontrade
andeconomic
cooperation in1995
(draft).Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from import
dutyfor
supplies
according to
Add. No.1
andNo.2.
Kyrgyz Republic
1. Agreement between
Ukrainian
Government and
Kyrgyzi Government
ontrade and
economic cooperation
in1994.Acting Prime
Minister -
Zvyagilskyi24December
1993,
Ashgabat31December 1994 Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.WT/L/20
Page77
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
2. Agreement between
Ukrainian
Government and
Kyrgyzi Government
onFreeTrade.ForUkrainian
Government -
Masol17September
1994,
AlmatyNotdefined Regime-free
trade, no
exceptions.
Noduties,
taxes and
charges.
3. Agreement between
Ukrainian
Government and
Kyrgyzi Government
ontrade and
economic cooperation
in1995 (draft).Products and
goods defined
inAdd. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
Republic ofTadjikistan
1. Agreement between
Ukrainian
Government and
Tadjiki Government
ontrade and
economic cooperation
in1995 (draft).Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
Turkmenistan
1. Agreement between
Ukrainian
Government and
Turkmeni
Government ontrade
andeconomic
cooperation in1994Acting Prime
Minister -
Zvyagilskyi8February 1994,
Kiev31December 1994 Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.WT/L/20
Page78
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
2. Agreement on
interbank settlements
between Ukrainian
andTurkmeni
National Banks in
connection with
introduction of
Turkmeni national
currency.ForUkrainian
National Bank
FirstDeputy
Head -
Veselovskyi29October 1993,
AshgabatNotdefined
3. Agreement between
Ukrainian
Government and
Turkmeni
Government onFree
Trade (draft).Regime-free
trade, no
exceptions.
Norduties,
taxes and
charges.
4. Agreement between
Ukrainian
Government and
Turkmeni
Government ontrade
andeconomic
cooperation in1995
(draft).Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
Republic ofUzbekistan
1. Agreement between
Ukrainian
Government and
Uzbeki Government
ontrade and
economic cooperation
inIVquarter of1994.Head of
Ukrainian
State
Delegation -
Golubchenko6September
1994,
TashkentIVQuarter
1994Products and
goods supply
defined in
Add. No.1,
2,3,4.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1,
2,3and4.
2. Agreement on
settlement
organization between
Ukrainian andUzbeki
National Banks.Head of
Ukrainian
State
Delegation -
Golubchenko
FirstDeputy
Head of
Ukrainan
Bank -
Veselovskyi6September
1994,
TashkentNotdefinedWT/L/20
Page79
No. Name ofdocument Signed by DateandPlace Term Ratification
dateComments
3. Agreement between
Ukrainian
Government and
Uzbeki Government
onFreeTrade (draft).Regime-free
trade, no
exceptions.
Noduties,
taxes and
charges.
4. Agreement between
Ukrainian
Government and
Uzbeki Government
ontrade and
economic cooperation
in1995 (draft).Products and
goods supply
defined in
Add. No.1
andNo.2.
Exemptions
from export
andimport
dutyfor
supplies
according to
Add. No.1
andNo.2.
VI. Laws andLegal Acts
1. Laws Regulating theFunctions oftheCustoms
Question 119.
Art.2 -Jurisdiction oftheLaw
Paragraph 2.Please further describe the"special customs zones" thatexistinUkraine
interms ofgeographic areas involved andannual value oftrade handled.
Reply 119.
There arenospecial customs zones inUkraine.
Question 120.
Art.3-TheSingle Customs Tariff ofUkraine
Paragraph 5.Please provide alistoftheexceptions totheuniform rates referred tointhis
paragraph.
Reply 120.
There arenoexceptions.WT/L/20
Page80
Question 121.
Art.7-Types andRates ofCustoms Duties
Paragraph 1.Please provide alistofgoods onwhich combined advalorem andspecific rates
areapplied andprovide ajustification forthispractice .
Reply 121.
There arenogoods onwhich combined advalorem andspecific ratesareapplied.
Question 122.
Art.11-Special Types ofCustoms Duties
Paragraph 1.Arethere types of"special customs duties" other thanthose described inArticles
12,13,and14?
Reply 122.
There arenosuchspecial types ofcustoms duties.
Question 123.
Art.12-Special Customs Duties
Paragraph 2.Please elaborate onandprovide examples offoreign economic activity thatwould
violate "statewide interests" asreferred tointhisparagraph.
Reply 123.
There arenosuchexamples.
Question 124.
Art.12-Special Customs Duties
Paragraph 4.Please describe ingooddetail theprocess ofestablishing therateofspecial customs
duties referred tointhisparagraph.
Reply 124.
Such aprocess hasnotsofarbeenestablished.
Question 125.
Art.13-Anti-Dumping Customs Duties
Paragraph 1.Does Ukraine 'slawallow fortheimposition ofanti-dumping duties inaddition to
thespecial duties described inArticle 12?WT/L/20
Page81
Reply 125.
Itdoesnot.
Question 126.
Art.13-Anti-Dumping Customs Duties
Paragraph 3.Please describe andgiveexamples ofhowtheexitofexcessively low-priced
commodities would harm thestatewide interests ofUkraine tosuch adegree towarrant the
imposition ofanti-dumping duties onthem.
Reply 126.
Sofarthere were nosuchcases.
Question 127.
Art.15-Procedure forApplying Special, Anti-Dumping, andCompensatory Customs
Duties
Paragraph 1.Please elaborate ingreater detail ontheprocess ofinvestigating anti-dumping claims
andcalculating injury margins.
Reply 127.
Theprocedure ofcalculating injury margins isbeing worked outbytheGovernmental
CommissionfortheProblemsofAnti-dumpingInvestigationswithregardtotheUkrainian-origingoods.
Question 128.
Art.16-TheCustoms Value
Paragraph 2.Please describe howUkraine determines charges intheareas oftransportation,
loading, unloading, reloading andinsurance astheyrelate tothedetermination ofcustoms value.
Does Ukraine apply advalorem rates orflatrates?
Reply 128.
Customs valuation iscalculated onthebasisofthecostdeclared tothecustoms administration
asspecified intheinvoice, aretaken intoconsideration:
costs oftransportation, loading shipment, unloading andinsurance uptothefinaldestination
ofimport inUkraine;
commission andbroker 'sfees;WT/L/20
Page82
value ofintellectual property usedduring theproduction ofgoods, which hastobedirectly
orindirectly paidbytheimporter orexporter asanecessary precondition forimport orexport
ofgoods.
Question 129.
Art.17-Calculation andPayment ofCustoms Duties
Paragraph 3.Istheexchange ratethattheNational Bank ofUkraine usesconsistent withthe
Articles ofAgreement oftheinternational Monetary Fund (whether intheuseofparvalues or
otherwise)?
Reply 129.
Incompliance withthePresidential Decree "OnPerfection ofMonetary Regulation" of
22August 1994, aunified carbovanets toforeign currency exchange ratehasbeenestablished
Theunified official carbovanets todollar exchange rateissetupproceeding fromtheresults
ofsales intheUkrainian interbank currency market. Thecarbovanets-to-other currencies exchange
rateissetupusing thecross-rates oftheFrankfurt Currency Market. Theofficial rateastothecurrencies
oftheFSUStates issetupusing thecross-rate oftheNational Bank ofRussia, while thatrelative to
theother currencies issetupusing thecross-rates published bytheFinancial Times newspaper.
Question 130.
Art.19-Customs Duties Exemptions
(f) Please describe thecategory ofpersons anditems thatreceive customs duties exemptions.
Reply 130.
Tariff exemptions apply tothefollowing items:
transportequipmentusedforregularinternationalshipmentsofgoods,accessoriesandequipment
foroperation thereof, fuel,foodstuffs andother goods usedforconsumption during thetravel
andthestops; thegoods purchased abroad forrepairs andmaintenance oftransport equipment;
goodsforaccessories,fuel,rawmaterialsforindustrialproduction,foodstuffsandotherproducts
transported from Ukraine 'scustoms territory forfishing andfish-processing vessels leased
byUkrainian firms; theproduction ofthese vessels;
Ukrainian and foreign currency andsecurities (forexample, bonds and/or shareholder 's
certificates);
products transferred toUkrainian ownership onthebasis ofUkrainian legislation;
goodsforpersonalconsumptionimportedbyorganizationsaccordingtointernationalagreements
andUkraine 'slawsonfree-tax imports andexports;WT/L/20
Page83
goods ofUkrainian origin re-imported intheterritory without sufficient processing abroad
sothatthese goods could notbeconsidered tobeofforeign origin;
goodsofforeignoriginwhichareexportedfromUkraine'scustomsterritorywithoutprocessing.
Question 131.
Art.21-Customs Duties Levied when Crossing theBorders ofSpecial Customs Zones
Paragraph 2.What arethespecial customs zones referred tointhisarticle, andthroughout the
statute?
Reply 131.
There arenospecial customs zones.
3.) Agency Customs Tariff
Question 132.
Itisstated that"theAgency Customs Tariff ofUkraine... evolves inthedirection of
maximum compliance withuniversally accepted principles andrules ofcustoms practice".
Arethere anypartofthecustoms system which have notyetcomplied withuniversally
accepted principles andrules ofcustoms practice? Ifany,please describe suchparts specifically.
Reply 132.
SeeReply 12
Duties Imposition Regime
Question 133.
Three different types ofspecial duties areindicated onpage15.What istherelationship
between these kinds ofspecial duties andanti-dumping andcountervailing duties asstipulated
intheGATT/WTO agreements?
With respect toeachofthese three types, please explain what kindofduties fallineach
ofthethree categories withsome specific examples?
Specifically, whatismeant bytheterms, suchas"regular hostile actions", "inimical actions
against other States", "counteractions against powers" and"economic groups orcustoms unions
which hinder theforeign trade activity ofUkrainian enterprises".WT/L/20
Page84
Reply 133.
Incompliance withtheLaw"OnUnified Customs Tariff" special duties canbechanged as
asafeguard fordomestic market asstipulated inArticle XIXofGATT 1947.
Also,theLawenvisagesthatspecialdutiescanbeusedasameasurerespondingtodiscriminatory
actions against Ukraine undertaken byseparate countries orunions which limittheimplementation
oftherights andinterests oftheUkrainian enterprises participating inforeign economic activities. This
Lawenvisages theapplication oftheanti-dumping andcountervailing duties inthecases provided for
bytheGATT/WTO regulations andrules. There havebeennocases oftheapplication oftheanti-
dumping andcountervailing duties, hence therethemechanism oftheirapplication isbeing developed
onthebaseofURAD.
Question 134.
Itisstated thatthe"anti-dumping dutyshould exceed thedifference between thegeneral
saleprice ofdumping goods intheexporting country andthedeclared import price". Why should
theADexceed theabove-mentioned difference? Isthisconsistent withthecurrent Uruguay Round
Anti-Dumping Agreement?
Reply 134.
SeeReplies 12and17
Question 135.
There isareference to"customs unions". HasUkraine concluded anyfree-trade agreements
orcustoms unions? Ifso,please provide therelevant information which allows ustolookinto
them inlightoftherelevant GATT Articles? Ifnot,doesUkraine have anyplans toconclude
them? Please describe suchplans. Ifnot,what ismeant bythisreference?
CanUkraine specifically explain what are"agreements onaspecial system ofpreferences
withtheconsideration fortheprovisions ofinternational arrangements"? Inparticular, what
ismeant by"with theconsideration fortheprovisions ofinternational arrangements"? What is
theintention ofUkraine astohowtodealwiththese preferences inmarket access negotiations
inthecontext ofitsaccession totheGATT/WTO? Forexample, doesUkraine intend tointegrate
allpreferential treatments totheMFN binding commitment?
Does Ukraine intend toconclude, orhasitalready concluded, apreferential trade
arrangement withRussia? IsRussia eligible tobeunder Ukraine 'sspecial system ofpreferences?
Itisstated thatimports ofgoods, except HSChapter 25-97, from developing countries
areeligible forpreferential duties, including theexemption from thepayment ofduties. Why
arethegoods inHSChapter 25-97 excluded from thisscheme? What istheobjective ofthispolicy?
What isthescope fordeveloping countries here? Arethecountries intransition included inthis
scope?
Reply 135.
SeeReplies 117,118.WT/L/20
Page85
Question 136.
What istheview ofUkraine ontheconsistency ofthe"customs duty inamount of
0.15percentofcustoms value ofthegoods forexecuting required customs procedures" with
Article VIIIoftheGATT?
Reply 136.
Customs feesrelated toexecutions ofthecustoms obligations including forexecution ofthe
commodities thatcross thecustoms borders havebeenestablished bytheCustoms Code, Article 76.
Thesizeofthesefeesisestablished bytheCabinet ofMinisters. Atpresent thecustoms feesareimposed
established bytheResolution oftheCabinet ofMinisters No.133of2March 1994. Incompliance
withthisResolution thefeeequal to0.15percentisimposed forcustoms services ofthecustoms value
ofthegoods butnotlessthanequivalent ofUS$20, which actually contradicts Article VIIIoftheGATT.
Thiscontradiction willbeeliminated when Ukraine isaccessed toGATT.
Question 137.
Isvalue-added taxonlylevied onimported goods? Istherateof28percentapplied to
anyimported goods, orarethere anyother rates considered asvalue-added tax?
Istheexcise taxlevied onlyonimported goods? Ifnot,please, indicate thescope ofthe
goods subject totheexcise tax?
Itisstated that,"theobject oftaxation inthiscaseisthecustoms value ofimported goods
plusactually paidsums ofallcustoms duties (and excise duty, forgoods subject there to).In
subsequent saleofimported goods theobject oftaxation isthedifference between theselling price
andthecustoms value pluscustoms duties, VAT andexcise duty". Theexplanation hereseems
rather unclear. Could Ukraine explain further what thisscheme is?Does thisscheme correspond
tosomething like"variable levies"?
Reply 137.
SeeReplies 28and30.
Question 138.
What istheview ofUkraine ontheconsistency ofitscustoms valuation scheme with
Article VIIoftheGATT?
Reply 138.
SeeReply 33.
Question 139.
Itisstated that"allcustoms duties, customs taxes andtaxes shall bepaidinUkraine
currency byresidents andinfreely convertible currency bynon-residents". What aretherationales
fordistinguishing thetypes ofcurrency topaycustoms duties, customs taxes andtaxes between
residents andnon-residents? Does Ukraine have theintention toensure thatnon-residents canWT/L/20
Page86
useUkraine currency topaycustoms duties, customs taxes andtaxes? Inwhat ways doesUkraine
ensure national treatment interms ofpayment ofallcustoms duties, customs taxes andtaxes?
Reply 139.
SeeReply 34.
Question 140.
Could Ukraine provide anHSbased line-by-line listofalltheitems which arecurrently
subject toquotas, licensing andother non-tariff measures both onimports andexports with
appropriate GATT justifications?
Reply 140.
SeeReply 38.
Theregime ofthecontrol overexport ofsensitive products andtechnologies iseffected
proceeding from thePresidential Decree No.3/93of1January 1994 andResolution oftheCabinet
ofMinisters No.159ofMarch 1993.
These decisions point outthatallproblems associated withsetting ofquotas andlicensing as
regards theexport ofarmaments, military equipment, appliances, technologies, raw materials
andthose ofdouble purpose areentrusted totheGovernmental Commission forexport control and
itsworking body, atechnical committee ofexperts under theCabinet ofMinisters.
Question 141.
CouldUkraineexplainabouttheactualmanagementofsovkhozes?Whenasovkhozesuffers
lossinprofit, doestheGovernment compensate forit?
Pleaseprovidealistofstate-tradingenterprises,whichwouldfallintothescopeofArticle17
oftheGATT, withindication ofthespecific items andthetrade volume dealt bythose enterprises.
What isthepercentage oftotalimports andexports which areconducted bythese State trading
enterprises? Could Ukraine explain their capacity andrelationship withtheGovernment?
Could Ukraine provide information onthefollowing points:
Themechanism under which wholesale prices andretail prices ofmajor agricultural
commodities, including grains, aredetermined.
Themechanism under which government purchasing prices ofmajor agricultural
commodities, including grains, from theproducers suchassovkhozes andother, aredetermined.
TheGovernment involvement ininternal sale,offering forsale,purchase, transportation,
distribution orusewithregard tomajor agricultural commodities, including grains.WT/L/20
Page87
Reply 141.
TheStateforeigntradeorganizationskeepanindependentbalancesheet,disposeseparatebanking
accountsandarelegallyresponsiblefortheiractivities.Atthebeginningof1994therewerethefollowing
main State foreign trade organizations inUkraine:
Ukrzovinshprom (State Concern)
Intermetbiznes (theMinistry ofIndustry)
Slavutich-Ruda (theMinistry ofIndustry)
Slavutich-Stal (theMinistry ofIndustry)
Urkzovnishhimprom (State Concern)
Ukrtekhmashimpex (State Concern)
Ukrbarimex (State Committee forResources)
Zarubinaftogaz (State Committee forOilandGas)
Ukrexpolis (Ministry ofIndustry)
Ukrpidshipnick (Machine-Building Industry)
Ukrvugilgazbud (State Committee forCoalIndustry)
Ukrzaliznichpostach (Ministry ofTransport)
Ukragrotekhservice (Ministry ofAgriculture)
Ukroboronservice (Ministry ofForeign Economic Relations)
Riznoexport (Ministry ofForeign Economic Relations)
Ukrspirt (State Agro-food Committee)
Ukrsil (State Agro-food Committee)
Share-holding Company "AGUkraina"
Share-holding Company "Ukrimpex".
SeeReplies 55,56.
Question 142.
Please provide more information ontheAgreement onJoining theEconomic Union of
theCIS. Inparticular, what isthescope ofthecommodities subject to"agradual abolishment
ofduties andother charges onimport -export operations." AreVAT andexcise taxlevied on
imports alsotobegradually abolished, together withduties andother charges? What isthetime-
frame ofthis"gradual abolishment?"
Reply 142.
Ukraine didnotsigntheAgreement of24September 1993. On15April 1994, Ukraine acceded
totheeconomic union asanassociated member. Intheframework oftheeconomic union, itisplanned
tocreate afree-trade zone which wasagreed upon on15April 1994. Thisagreement envisages
eliminating allexport-import restrictions inthetrade between theCISStates. However tillnowno
oneofthese States which signed theagreement proved abletoratify thisagreement orcreate the
conditions formaking thisagreement effective. Themechanism ofremoving thetraderestrictions has
beenleftundefined.
Question 143.
Thememorandumstatesthat"furtherformationandenhancementofmarketinfrastructure
(goods andstock exchanges, investment funds, trust andinsurance companies), thedevelopmentWT/L/20
Page88
ofprimaryandsecondarymarketsofsecuritieswillbeprogressing."CouldUkrainepleaseelaborate
onthis? What arethespecific plans andtheschedule fordeveloping thispartofthefinancial
infrastructure?
Reply 143.
Incompliance withtheProgramme ofEconomic Reforms ofthePresident approved bythe
Supreme Rada oneofthetop-priority directions isthedeepening ofreforming ofthebanking system,
promotion ofthetrade mediation activities andwidening ofthemarket infrastructure.
ThePresident should develop acomplex problem intended touptheroleofcommercial banks,
toeliminate thediscriminatory taxation system, toensure alegislative basis forcommercial banks to
takepartintheprivatization process, torehabilitate unprofitable enterprises, toensure themerging
oftheindustrial andfinancial capital forthenational competitive financial capital tobeformed.
During theperiod of1995-1997 specialized bankorganizations should beformed: theNational
LandBank, theNational Pledge Credit Corporation, theUkrainian Dwelling Construction Credit Bank,
theSpecialized Farm, Small-scale Business etc.,Credit Organizations.
Itisplanned toensure afastdevelopment ofthefundmarket: creation ofaspecial Statesecurities
commission toensure theregulation ofrelations intheexchange market, creation ofthefundexchange
securities electronic circulation system.
Question 144.
Thememorandum states thatamain direction ofUkraine 'seconomic policy isa"reduction
ofthenegative trade balance (current balance ofpayments) toalevelofnomore than5percent
ofGDP through making substantial cutsinnon-critical imports andexpanding exports. "How
arethese cutstonon-critical imports tobeimplemented? What import categories would beaffected
bytherestrictions?
Reply 144.
SeeReply 2.
Question 145.
Thememorandum refers tothe"stage-by-stage transition tomarket pricing system in
allspheres ofeconomic activity". However, inthenextsentence there isalsoareference toan
exception forwhat appears tobebasic consumption goods forthelesswelloffsegment ofthe
population. What specific products areinthisgroup ofgoods subject toexceptions? What
percentage ofthepopulation qualifies forthese "consumption" goods? What isthenature ofthe
existing pricing structure fortheproducts excluded from market pricing? Isitplanned thatthis
sector willalsobeconverted tomarket pricing? Ifso,when?
Reply 145.
Toimplement theProgramme ofEconomic Reforms proposed bythePresident Kuchma, the
Cabinet ofMinisters ofUkraine approved theResolution "OnPricing inthePeriod ofReforms" No.733
of21October 1994. Incompliance withthisResolution, considerably cutwerethevolumes ofState-WT/L/20
Page89
regulated prices andtariffs, thusreducing theStateregulation tosome natural andartificial monopolies.
Inthisconnection, theStategoesonregulating theprices forcommunal services, municipal transport,
coalandgasforheating andlighting, electric power supply, bread, flour, baby'sfoodproducts.
Also, compensations areenvisaged forthepopulation fordwelling andcommunal services '
costs andthose fortransportation (municipal transport). Foralltheother commodities andservices
themarket pricing wasinitiated. Acomplete market pricing depends upontheconditions ofeconomic
stabilization expected in1996 -1997 incompliance withtheProgramme ofEconomic Reforms.
TheGovernment willcontinue price liberalization in1995. Forexample, municipal electric
power consumption prices willbeincreased toapproach approximately 40percentofproduction costs.
Also, dwelling prices willincrease significantly aswell.
Question 146.
Thememorandum States that"Forthetimebeing subsidizing prices forallproducts and
goods hasbeen terminated. "Does thisimply thatitmight bebrought back? What ismeant
by"subsidizing prices"? Areprices market determined butsome consumers receive direct subsidies
toreduce theprice theyactually pay.Orareprices fixed toconsumers, andproducers paida
subsidy.
Reply 146.
SeeReply 145.
Question 147.
Itisstated that"Insectors other than State-controlled sector only freeprices are
effective...". What proportion ofGDP isbeing produced bytheState-controlled sector?
Reply 147.
SeeReply 145.
Despite theprivatization anddevelopment ofprivate sector, theState-owned enterprises make
upaconsiderable partoftheUkrainian economy. Also, seeReply 8.
Question 148.
Itisstated that"The number ofState-owned enterprises 'goods andservices whose prices
arenotregulated bytheState". Itappears thatthesentence wasnotcompleted. Could Ukraine
provide thedataand/or details which were apparently omitted?
Reply 148.
Theomitted partreads: Thenumber oftheState-owned enterprises...will becontinuously
increasing.WT/L/20
Page90
Question 149.
Would Ukraine provide details on"bedrock" and"indicative" prices, astheypertain to
allexports, andinparticular agricultural exports? How aretheyset,andhowaretheyused?
Reply 149.
SeeReply 5.
Question 150.
Thememorandum States that"significant inflation rates (about 50percentpermonth)
caused bythedrop inproduction andprogression ofother crisis phenomena compelled the
Government oftheUkraine toundertake aseries ofsteps aimed atstrengthening thedegree of
State influence upon thedynamics ofprices bymeans ofintroduction ofstiffer regulation inthe
spheres ofproduction andcirculation". Thememorandum alsoidentifies examples ofsuchstiffer
regulation: "limitation oftheprofit rateintheproduction andcutoftheamount ofsurcharges
andmarkups inthecirculation spheres, andnotes that"with theviewofanadmission ofexport
from Ukraine atdumping prices, theGovernmental Committee hasdetermined bedrock prices
formany types ofexported products effective asofJanuary 1993". How arethese various
economic factors affecting theregulation ofcompetition intheUkraine?
Reply 150.
Incompliance withtheProgramme ofEconomic Reforms, themainobjective inpricing policy
consists inaconsiderable decrease oftheStateinterference intheprice regulation process. Attheend
ofOctober1994theUkrainianGovernmenteliminatedmostmechanismsoftheStateinfluenceonpricing:
adirect control overprices, apreliminary declaration onthechange inprices including those ofthe
products andservices produced bymonopolists. Inindustry, theStateregulation ofprices willbeleft
onlyforthose products andservices where amonopolism ofproducers isofanatural nature (electric
power production, gas,heating, water supply andsewage systems, public transport andapartments
rent). Intrading enterprises, onlybread prices areregulated bytheState. Also allmarkups were
eliminated forthedomestic origin goods. Forindicative prices seeReply 5.
Question 151.
Thememorandum states thatthepriorities for1994 include the"full-fledged realization
ofprivatization ofsmall-scale state-owned enterprises" andthe"expansion ofprivatization of
medium-scale andlarge-scale state-owned enterprises". Does thismean thatallsmall-sized
State-owned enterprises (SOEs) willbeprivatized bytheendof1994? Arethere anysectors
thatwillnotbeprivatized. Willforeigners beallowed topurchase privatized SOEs, either wholly
orinpart?
Reply 151.
SeeReply 9.WT/L/20
Page91
Question 152.
What agricultural goods doUkraine export ?What aretheprincipal export markets for
these exports?
Reply 152.
Agricultural goods make approximately 10percentofthetotalvolume ofexport.
Agricultural goods exported from Ukraine include:
HSNomenclature
Frozen meatwithnobones 0201-0202
Dried fatless milk 040210990
Salt(inbulk) 250100910
HSNomenclature
Pea(inbulk) 110319900
Margarine 151700000
Butter 040500100
Ethyl alcohol, 96% 220710000
Vegetable oil 151219910
Wheat 100190000
Casein
Corn 100590000
Sugar 170199100
Question 153.
Arethere anymarket access ornational treatment restrictions onthesupply ofservices
byforeigners through anyofthefourmodes ofsupply (i.e., cross-border supply; consumption
abroad; commercial presence orthepresence ofnatural persons)?
Reply 153.
Incompliance withtheLawofUkraine "OnForeign Economic Activities", there areno
restrictions onsupply ofservices byforeigners inthepartoffourabove-mentioned modes ofsupply.WT/L/20
Page92
Question 154.
Arethere anymarket access ornational treatment restrictions ontheforeign supply of
professional services, business services, computer services, environmental services, enhanced
telecommunications services, financial services ortransportation services?
Reply 154.
SeeReply 248.
Question 155.
Thememorandum states that"therates oftheAgency Customs Tariff ofUkraine are
common forallsubjects oftheforeign trade activity except forcases envisaged bylawsofUkraine
andinternational agreements". Would Ukraine please elaborate ontheexceptions?
Reply 155.
SeeReply 23.
Question 156.
Itisstated thatUkraine usesadvalorem duties; specific duties; andcombined duties,
using bothofthetwoother types. What percentages oftariff lines arefound ineachofthese
three categories? What percentages ofcustoms collections areaccounted forbyeachofthem?
What percentages byvalue ofimports fallunder eachofthethree categories?
Reply 156.
SeeReply 13.
Question 157.
TheMemorandumnotedthatanti-dumpingdutiesareleviedundertheconditionsstipulated
byArticle VIoftheGATT. However, theMemorandum alsostates that"theanti-dumping duty
should exceed thedifference between thegeneral saleprice ofdumping goods intheexporting
country andthedeclared import price, orthedifference between thedumping price oftheexported
goodandtheaverage export price ofcompetitive goods ofUkraine origin during acertain period".
Given normal GATT practice, should notthisStatement rather read; "theanti-dumping duty
should notexceed thedifference between thegeneral saleprice andthedeclared import price.."?
Finally, what ismeant by"competitive goods"?
Reply 157.
SeeReplies 15,16,17.WT/L/20
Page93
Question 158.
CouldUkraineprovideabriefdescriptionofananti-dumpingprocedure(includinginquiry)?
Forexample, what aretheinitiation criteria? Arethere causal andmaterial injury tests?
Reply 158.
SeeReplies 15,16,17.
Question 159.
Thememorandum states that"special duties" maybeimposed onimports which could
"inflict substantial damage onproducers ofsimilar goods". Could theauthorities provide an
elaboration ofthecompatibility ofUkraine 'ssafeguard regime withtherequirements ofGATT
Article XIX? Arecausal andmaterial injury testsapplied when determining ifimported goods
"inflict substantial damage toproducers ofsimilar goods"?
Reply 159.
SeeReplies 15,16,17.
Question 160.
TheMemorandum states that"special duties maybelevied asthemeans tocombat regular
hostile actions directed against thegeneral interests ofUkraine". What ismeant by"combat regular
hostile actions" andbythe"general interests ofUkraine"? Doesthisrefer tosomething other than
"material injury" asdefined intheAnti-dumping Code? Does itgobeyond theeconomic interests
ofUkrainian producers/firms/industry, andifso,howarethose interests determinable? What
aretheoperational steps involved inimposing suchaduty? Have anysuchduties beenimposed
todate? Areanti-dumping duties included under thecategory of"special duties"?
Reply 160.
SeeReplies 15,16,17.
Question 161.
TheMemorandum states that"special duties maybelevied asprotective measures against
discriminatory orinimical actions against other States, orascounteractions against powers,
economic groups orcustoms unions which hinder theforeign economic activity ofUkrainian
enterprises". Have anysuchduties beenimposed todate? Areanti-dumping duties included under
thecategory of"special duties"?
Would these duties berestricted toimports thatarerelated toanysuchdispute? Would
there beclear provisions toestablish acausal linkbetween any"inimical actions" andmaterial
injury toanyUkrainian firmorindustry? What steps would beinvolved inorder toputaninquiry
intooperation?WT/L/20
Page94
Reply 161.
SeeReplies 15,16,17.
Question 162.
Hasthe"special duty" been applied toagricultural imports and, ifso,atwhat rates?
Arethere anyspecial duties currently ineffect intheagricultural sector? How doesUkraine
plan toadjust thispolicy inlight ofWTO requirements governing theuseofanti-dumping,
countervail orsafeguard trade remedies?
Reply 162.
SeeReplies 10,15, 16,17.
Question 163.
TheMemorandum states that"theanti-dumping dutycanbelevied onexport ofgoods
from Ukraine iftheirprice isconsiderably lower thentheprice ofthesimilar good exported from
Ukraine. While itislaudatory thatsome ofthese measures aimtomaintain competitive conditions
inUkraine, itisunusual tofindexport control provisions within trade remedy measures. Could
Ukraine please provide anelaboration ofwhyandhowthesystem isusedforexport control?
Reply 163.
Theposition oftheGovernment ontheliberalization offoreign economic activities isbased
ontheconcept consisting inthat,atthepresent stageoftheimplementation oftheeconomic stabilization
programme, under conditions ofthebeginning ofprivatization ofproduction enterprises andforeign
trade enterprises, when domestic prices forrawmaterials andproducts arestilllower thantheworld
onesandthere isnoreliable system ofthecontrol overexport andforeign currency returns, when
there stillexists athreat ofadeficit ofrawmaterials andproducts inthedomestic market, theexport
liberalization should beaderivative element ofthemarket reforming process. Oneofthemosturgent
problems ofthestrengthening ofeconomic bonds withthedeveloped countries oftheworld consists
inapplication oftrade restrictions onUkrainian-origin goods intheworld market. Here, mostwidely
usedarerestrictions involving theapplication ofanti-dumping procedures. Recent initiatives ofthe
Government aimed ateliminating acompulsory exchange offoreign currency atanartificially lowered
rateandelimination ofalltheexport quotas andlicenses (except forlicences forwastes offerrous and
non-ferrous metals, pigiron,coal,grains andthegoods subject tovoluntary restrictions) bring about
apositive effect onthedevelopment ofexport. TheResolution oftheCabinet ofMinisters "On
Liberalization ofExport Operations" of24October 1994 No.734,thePresidential Decrees "Onthe
System ofRegistration ofSome Types ofContracts" of7November 1994 and"OnIndicative Prices
forGoods inForeign Economic Activities" of18November 1994 annulled thenon-tariff regulation
system andformed abasis forareliable preliminary monitoring offoreign economic activities and
theirforecasting, andforcontrol overforeign currency returns from foreign trade operations. This
system hasalready allowed preventing rudeviolations byexporters oftheUkrainian Laws, applying
discriminatoryanti-dumpingmeasuresagainsttheUkrainian-origingoodsandusinganobjectiveanalysis
ofthedevelopment offoreign trade activities.WT/L/20
Page95
Question 164.
HowdoesUkraine define a"subsidy" when levying acountervailing duty? Must asubsidy
befound tobespecific (intheWTO Subsidies Agreement sense) before countervail canbeimposed?
Ifso,howisspecificity defined? What ismeant by"direct" and"indirect" subsidization? Does
theproposedforeigntraderegimeenvisagecountermeasuresotherthancountervailingduties?What
conditions must besatisfied before countervailing duties maybeimposed (e.g., evidence ofa
subsidy, causal linkbetween subsidy andmaterial injury)? What arethecriteria thatdefine the
prevention ofthedevelopment ofproduction inUkraine? How is"competitive goods" defined?
Reply 164.
SeeReplies 15,16,17.
Question 165.
TheMemorandum states thatpreferential rates areapplied togoods "shipped from the
developing countries except forgoods attributed tocommodity groups 25-97 oftheHarmonized
System (HS)". Therefore, preferential rates apply toagricultural imports inChapters 1-24of
theHSfrom developing countries. Which agricultural products havepreferential rates available
forimports from developing countries, andwhich developing countries enjoy suchpreferential
rates?
Reply 165.
SeeReply 21.
Question 166.
Isthe"weighted average dutyrate" of11.9percentbased onimports from allsources?
Isthe"reduced weighted average dutyrate" of6.3percentbased onMFN sources?
Reply 166.
Yestobothquestions.
Question 167.
Itisstated thatUkraine collects "acustoms dutyinamount of0.15percentofcustoms
value ofthegoods forexecuting required customs procedures". Advalorem customs feeshave
beenfound tobeinconsistent withGATT Articles IIandVIIIbyaGATT Panel (United States -
Customs User Fee:Panel Report: 2February 1988). What plans doesUkraine have toconvert
itssystem toonebased ontheactual costofservice perindividual entry?
Reply 167.
SeeReplies 26,34,136.WT/L/20
Page96
Question 168.
Arethevalue-added taxof28percentandtheexcise duties applied equally todomestic
goods andtoimports? Ifthere aredifferences intreatment, please provide details.
Reply 168.
SeeReplies 27,28.
Question 169.
Itisstated thatimported goods which are"supplied asaresult ofbarter operations" are
exempted from value-added tax. What proportion ofUkraine 'simports aretraded within the
framework ofbarter operations?
Reply 169.
Thepreliminary monitoring system formed bythePresidential Decree "OntheSystem
Registration ofSome Types ofForeign Activity Contracts" of7November 1994hasverified theforecast
astotheavalanche barterization prevailing inforeign tradeactivities under conditions ofliberalization
oftheexport regime. Inparticular, inNovember-December 1994 80percentofcontracts, onthe
average, arebarter operations and,insome regions, onehundred percentofcontracts arebarter
operations.
Question 170.
HowdoesUkraine 'ssystem ofcustoms valuation compare withtheinternational Customs
Valuation Code?
Reply 170.
SeeReply 33.
Question 171.
Provision ismade, under specified circumstances, to"determine thecustoms value on
thebasis ofthevalue ofthesimilar iteminthedominant country". What criteria doesUkraine
usetoselect the"dominant" country?
Reply 171.
"Dominant" country means inthecontext oftheMemorandum acountry -aleader intheexport
ofagiven commodity/service.
Question 172.
Itisstated that"The customs taxes arededucted tothebudget ofUkraine". Istheterm
"deducted" intended toread"credited"?WT/L/20
Page97
Reply 172.
Yes.
Question 173.
Itisspecified thatnon-residents must paycustoms duties andtaxes infreely-convertible
currency. Would thisapply toanon-resident being paidinlocal currency? Ortoabusiness
enterprise receiving itsproceeds inlocal currency ?
Reply 173.
SeeReply 34.
Question 174.
Please provide alistofgoods forwhich import quotas andlicences apply. HowdoesUkraine
plantoadjust itspolicy ofquantitative restrictions inlightofWTO requirement ?
Reply 174.
SeeReplies 36,37,38,39.
Question 175.
Would Ukraine please elaborate onwhat ismeant by"vessels ofthegiven country and
vessels leased (freighted byit)"asstated intheMemorandum?
Reply 175.
Thisconcerns thedetermination ofacountry oforigin: "thevessels ofacountry and/or vessels
freighted bythiscountry .
Question 176.
TheMemorandumstatesthat"theprocessingandreprocessingshallbedeemedsufficientif:
Thedeclared goods areclassified fortheir manufacture;
thevalue ofthedeclared goods contains theshare ofthevalue added
constituting atleast50percent."
Reply 176.
SeeReply 40.WT/L/20
Page98
Question 177.
Would Ukraine please clarify whether bothconditions havetobemetorwhether ifagood
doesnotmeetthefirstcondition thesecond standard canbeapplied i.e.,whether thetwoconditions
areconnected byan"and" oran"or".
Reply 177.
SeeReply 40.
Question 178.
With regard tothesecond standard, would Ukraine please confirm that50percentof
the"added value" refers tocostofproduction, andifso,what isthebasis forthecalculation of
costofproduction?
Reply 178.
SeeReply 40.
IncompliancewiththeLaw"OnUnifiedCustomsTariff"acountryoforiginisacountrywherein
aproduct wasfully produced orsubjected toacomplete processing orreprocessing. Asufficient
processing orreprocessing isconsidered assuchwhen adeclared goodcostincludes atleast50percent
addedvalue.Themethodusedforthispurposesallowsforallcostsofprocessingjobsusedinproduction.
Insufficient arethefollowing processing jobs:
Storage ofgoods;
preparation forsaleandtransportation;
simple storehouse jobs;
mixing ofgoods ortheircomponents thatdonotimpart tothefinalproduct theproperties which
considerably differ them from initial components.
Question 179.
TheMemorandum states that"simple assembly" and"mixing" donotnecessarily constitute
sufficient reprocessing. Could Ukraine please elaborate onthese tworequirements inthe
determination ofcountry oforigin?
Reply 179.
SeeReply 178.WT/L/20
Page99
Question 180.
IsUkraine following anactive policy ofadopting international standards andjoining
international standards bodies? Ifso,please provide details.
Reply 180.
SeeReplies 43through 48.
Question 181.
Inprinciple, theapplication toimports ofthe"minimum conditions ofthestandards and
requirements effective inUkraine", asreferred tointhememorandum, isavalid andacceptable
approach infullcompliance withtheAgreement onSanitary andPhytosanitary Measures inthe
Final ActoftheUruguay Round. How doesUkraine ensure readily available andtransparent
disclosure ofthese standards anddomestic control programmes forimports of,inter alia,live
animals, animal semen andanimal embryos?
Reply 181.
Incompliance withtheLaw"OnProvision ofSanitary andEpidemic Safety ofthePopulation",
lifeandhealth safety requirements arerequired tobeincorporated instandards forfinished products,
rawmaterials andtechnologies. Drafts ofthese standards aretobesubjected toexpert examination
bytheState Health Protection Bodies tocheck iftheymeet therequirements ofinternational
organizations.
Intheprocess ofUkraine 'saccession totheGATT/WTO system, Ukraine intends toimplement
theAgreement ofSanitary andPhytosanitary Standards. Inthisconnection theGovernment willtake
acomplex ofmeasures toform required protection standards.
*Question 182.
With reference totheuseof"foreign standards andrequirements effective inleading
countries-exporters", please describe theprocess andcriteria under which health protocols with
Ukraine 'strading partners areestablished. What isthecorrelation between thehealth status of
thecountry oforigin ofmaterials, ortheintegrity oftheveterinary infrastructure andcredibility
ofthediagnostic capability, withthenature ofthehealth protocols established?
Reply 182.
Question 183.
IsUkraine amember oftheCodex Alimentarius Commission under theFAO, the
International Plant Protection Convention, andtheOffice Internationale desEpizooties? Ifso,
doesUkraine apply therelevant standards? Inparticular, isUkraine prepared touseadherence
totheanimal health codeandrecommendations oftheOffice Internationale desEpizooties (O.l.E.)
asthebasisfordevelopmentofscientificallyvalidatedanduniformhealthcertificationrequirements
regarding theinternational movement ofanimals, semen, andembryo?WT/L/20
Page100
Reply 183.
SeeReply 48.
Ukraine joined theInternational andMediterranean Plants 'Protection Convention on
3April 1994. Also, itshould bementioned thattheFSUStates were themembers oftheIPPC and
FAO. Atpresent Ukraine isnottheFAO norCODEX member.
TheUkrainian Government plans tojoinFAO in1995. Theproblems involved arethose of
apurefinancial nature.
Question 184.
What areUkraine 'sintentions tofurther liberalize itsexport regulation scheme?
Reply 184.
SeeReply 163.
Question 185.
What export quotas arecurrently ineffect, inparticular foragricultural products? If
there arenoexport quotas inplace atthepresent timeforagricultural andfoodproducts, are
theysubject totheimposition ofsuchexport quotas?
Reply 185.
SeeReplies 35,36,163.
Question 186.
Please elaborate onthe"system ofgovernment contract" towhich exports havebeensubject
since March 1993. How areexport prices determined? Does thisamount toproviding export
subsidies? Areother export subsidies provided toagricultural products?
Reply 186.
SeeReplies 55,78.
Question 187.
TheMemorandumstatesthat"theexportofgoods(works,services)fromUkraineisexempt
from VAT andexcise duty". Forclarification, doesthismean thatallproduction orprocessing
forexport andallservices involved inpreparing thatproduct forexport would beexempt from
theVAT?WT/L/20
Page101
Reply 187.
No,theydonot.
Question 188.
Does Ukraine have anytechnology programmes, e.g., programmes forthesupport or
promotion ofresearch anddevelopment, orforthecommercialization oftechnology? Ifso,would
itprovide adescription ofthese?
Reply 188.
Seereply 4.
Question 189.
Would Ukraine please describe thedevelopment ofitscompetition policy. Thefollowing
arespecific areas ofinterest:
(a) Howdoesthecompetition policy regime inUkraine fitinwithbroader government
economic policies andprogrammes (e.g.State trading, privatization)?
(b) Although theAnti-Monopoly Committee oftheGovernment oftheUkraine has
been inexistence foronlyashort period oftime, wewould appreciate abrief
summary ofthemake-up oftheCommittee, their experience todate(e.g.legal,
economic, regulatory) andadescription oftheir activities.
(c) Hastheenforced break-up ofState enterprises been effective inpractice?
(d) How hasUkraine implemented competition policy inareas suchas:countering
abuse ofdominance; criminal activity (e.g. conspiracy); andmisleading
advertising?
(e) Could Ukraine provide information onanycurrent orproposed enforcement efforts
related tocompetition policy? Ifso,howeffective have these beeninlocating or
deterring anti-competitive activity inUkraine?
Reply 189.
SeeReplies 1,2,4,7,8,9,49,50,56.
Question 190.
Could Ukraine provide anelaboration ofitsoverall policies andprogrammes which pertain
totheagricultural sector (e.g., subsidy (domestic andexport) programmes)?
Reply 190.
SeeReplies 9,55,56.WT/L/20
Page102
Question 191.
TheMemorandum states thatthe"private sector inagriculture willaccount foralmost
39percentofthegross output". Please elaborate onthebasis forthisStatement. What share
ofgross output does private sector agricultural production now account for? What isthe
programme andtime-frame fortheprivatization oftheagricultural sector? What privatization
hastaken place todate?
Reply 191.
SeeReplies 9,55,56.
Question 192.
While thetrend maybetoward privatization ofindividual farms, towhat extent dothe
distribution channels (processing, wholesale distribution, andretail) usedbyfarmers tomarket
their product operate under freemarket conditions?
Reply 192.
SeeReplies 9,55,56.
Question 193.
Regarding planned production levels for1994, what arethetypical previous production
levels forgrain, sugar beets, sunflower seeds, milk, meat andpoultry?
Reply 193.
Production ofAgricultural Commodities (thousand)
1986-1990 1990 1991 1992 1993
Grains 47,431 51,009 36,764 38,537 45,623
Sugar beets 43,845 44,264 36,168 28,783 33,717
Sunflower seeds 2,602 2,571 2,311 2,127 2,075
Flax(fibres) 110 108 106 105 73
Soya bean 95 99 135 76 61
Potatoes 17,965 16,732 14,550 20,277 21,009
Vegetables 7,449 6,666 5,932 5,310 6,055
Meat 4,309 4,358 4,029 3,401 2,919
Milk (miot) 23.0 24.5 22.4 19.1 18.1
Question 194.
TheMemorandum states that"...it isessential toexpand cooperation withthecountries
thathave more efficient agricultural technologies." Inwhat forms doesUkraine envisage the
implementation ofthiscooperation?WT/L/20
Page103
Reply 194.
Themaindirection incooperation inagricultural production consists intheattraction offoreign
investments inthisproduction forwhich purpose theStateagricultural production support programmes
havebeendrawn up.Forfurther details. Thisprogramme covers thetop-priority branches oftheagro-
industrialcomplex,includingtheproductionofgrains,flax,oilcropsandsugarbeetaswellasprocessing
industry. AlsotheProgramme envisages theirexport orientation.
SeeReply 67.
Question 195.
TheMemorandum states thattheagro-industrial sector receives preferential treatment
through anincome taxrateof11percentversus rates varying from 22percentto75percent
inother sectors. Does thisrateapply tofarms aswellasfarm supply firms?
Reply 195.
Thisrateextends onlytofarms producing agricultural commodities.
Question 196.
TheMemorandum states that"theintroduction ofarulerequiring that50percentof
export receipts inhard currency besoldtotheState haspaved thewaytoagradual transition
tofullinternal convertibility ofthenational currency". How willtheSystemic Transformation
Facility withtheIMF alter thecurrent foreign exchange system? How willthenewcurrency
regulations (decree signed byPresident Kuchma inAugust 1994) which, interalia,provide for
thegradual unification ofofficial andmarket rates based onacoefficient ofdivergence, anda
reduction ofthe50percentsurrender requirement to40percent(30percentatthefixed rate
and10percent atthemarket rate)alterthecurrent foreign exchange system. What isthetimetable
forfullconvertibility ofthenational currency? What aretherequirements toobtain alicence
from theNational Bank ofUkraine toextend credits andloans inhard currency andtoremit
capital inforeign financial market? Will foreign banks bepermitted tocarry outexchange
operations?
Reply 196.
Incompliance withtheAgreement "OnSystematic Transformation Facility 'withtheIMF,
topromote export, theGovernment undertook important measures toreform foreign trade. On
5October 1994, resumed weretheoperations intheInterbank Currency Market. Official rateintended
forcompulsory deduction offoreign currency receipts fortheState budget wasannulled on
26October 1994, theexchange ratewasunified tobenowsetupfrom theresults oftheInterbank
auction. Allcommercial banks possessing alicence oftheNational Bank havetherighttoparticipate
incurrency sales. Inclose perspective, itisplanned toimplement currency reform intheframework
ofwhich thefixedgrivna (anewnational currency toreplace carbovanets) ratewillbeintroduced relative
tooneofthehardcurrencies, anyforeign currency usedasapayment medium willbeprohibited,
acompulsory exchange ofhardcurrency intogrivna willbeintroduced. Thegrivna stabilization fund
willattract theIMFcredits, andthose oftheother foreign investors.
AlsoSeeReplies 63,64.WT/L/20
Page104
Question 197.
TheMemorandum states thattheState Programme ofEncouraging Foreign Investments
inUkraine setsforth priorities forforeign investment inseveral sectors including "power park".
What doesthisterm mean? Isitmeant torefer toinstallations involved inthegeneration of
electricity? What arethe"additional benefits" referred tointhesame paragraph forforeign
investments inpriority sectors oftheeconomy andsocial development?
Reply 197.
Theexpression, usedinanextremely awkward sense, means actually "power generation
facilities".
Forthedetails seeReply 67.
Question 198.
What willbetherelationship between Ukrainian Bank forReconstruction andDevelopment
andtheAgency forInternational Cooperation andInvestments?
Reply 198.
TheAgency forInternational Cooperation andInvestments isresponsible foronlytechnical
assistance toUkraine. TheUkrainian Bank forReconstruction andDevelopment hasnotbeencreated
sofar.
Question 199.
TheMemorandum states thattheUkrainian Bank forReconstruction andDevelopment
willfacilitate theprovision ofguarantees toentities. What willbethenature ofguarantees provided
toforeign investors bytheUkrainian Bank forReconstruction andDevelopment?
Reply 199.
SeeReply 198.
Question 200.
TheMemorandum states thatUkraine 'slegislation "generally" provides national treatment
forforeign investors. What areUkraine 'sexceptions tonational treatment? Isnational treatment
provided toonlyselect sectors identified intherelevant laws? Aretheconditions andrequirements
tobenefit from national treatment outlined inthelaws? Insectors where noadditional benefits
would beprovided, isthere aninvestment threshold applied fornational treatment purposes (i.e.
thenoterefers forexample toa20percentminimum ofatleastUS$50,000 plusequipment or
anintellectual property). Aresuchrequirements clearly spelled out?WT/L/20
Page105
Reply 200.
Incompliance withtheResolution oftheCabinet ofMinisters "OntheForeign Investments
Regime"whichproceedsfromtheobjectivesandprinciplesoftheLawofUkraine"OnForeignEconomic
Activities" and"OnForeign Investments", anational regime forforeign investments andanyother
economic activity hasbeenestablished intheterritory ofUkraine except forthecases provided for
byinternational agreements.
Forforeign investments intop-priority branches andsocial sphere theStateprogrammes can
setforth additional advantages. TheLaws ofUkraine candefine specific territories wherein foreign
investment activities arelimited proceeding from theconsiderations ofnational security.
Question 201.
Would Ukraine please provide summary descriptions ofthelegalactswhich form thebasis
fortheeconomic activities offoreign investors inUkraine asreferred tointhememorandum?
Does Ukraine foresee anychanges toitscurrent foreign investment regime. Ifso,what would
bethenature ofandtimetable foranylegislative changes?
Reply 201.
SeeReplies 65through 70.
Question 202.
TheMemorandum liststheguarantees thatUkraine extends toforeign investors including
an"exemption from nationalization andsequestration"? Arethere any circumstances under
which thisexemption would notapply? How would "foreign investor" bedefined? What does
"sequestration" mean here? Isittobeunderstood inalegalsense of"toseizetemporary possession
of"(such asadebtor 'sestate), ordoesitsimply mean "toconfiscate" or"toappropriate"?
Reply 202.
SeeReplies 65through 70.
Question 203.
TheMemorandumstatesthatUkraineguarantees"compensationforlossordamageincurred
byforeign investors asaresult ofactions ordefault ofpublic bodies andtheir officials". The
Memorandum alsostates that"reimbursing foreign investors forthelossincurred bythem as
aresult ofactsorfailure toactonthepartofpublic bodies" needs toberesolved. What distinction
ismade between these twoapparently conflicting statements?
Reply 203.
SeeReplies 65through 70.WT/L/20
Page106
Question 204.
Doforeign investors have toapply totheAgency forInternational Cooperation and
Investments forapproval offoreign investment projects? Does theAgency have thepower to
disallow foreign investments andifso,what reasons could beusedtoreach suchadecision? Has
sucharefusal everbeen issued?
Reply 204.
Incompliance withtheLawofUkraine "OntheState Programme ofAttraction ofForeign
Investments" of18December 1993, foradditional advantages inmaking investments intop-priorities
spheres, as-defined bythisProgramme, tobeobtained byforeign investors theyhavetheright for
additional privileges.
Fordetails seeReply 65-70.
Foradditional privileges, aninvestor mustsubmit anapplication totheInternational Agency
forCooperation andInvestments.
TheAgency hastherighttodisallow additional privileges envisaged bytheLawabove.
Question 205.
Does Ukraine haveanytrade-related investment measures thatareinconsistent withthe
TRIMS Agreement andrelated GATT Articles IIIandXI.IsUkraine willing tonotify officially
suchinconsistent measures upon entry intotheWTO andtoeliminate them within thetwo-year
timeperiod, asstipulated inArticle 5(2)oftheTRlMS Agreement?
Reply 205.
SeeReplies 65through 70.
Question 206.
TheMemorandum states thatvarious bodies such asministries andregional State
administrations have competence intheareaofinvestment. Would Ukraine please elaborate on
theroles andresponsibilities ofthese various bodies?
Reply 206.
SeeReply 67.
Question 207.
What specific incentives have been offered byUkraine toattract foreign investment?
Reply 207.
SeeReplies 65through 70.WT/L/20
Page107
Question 208.
How aregovernment procurement activities regulated? When would Ukraine envisage
adhering totheGATT/ WTO Government Procurement Code?
Reply 208.
SeeReplies 58,73through 75.
Question 209.
TheMemorandum liststhegoals andobjectives ofstate-owned trade enterprises. Do
state-ownedenterpriseshaveamonopolyontheseactivities?Areforeignfirmspermittedtoprovide
some oftheservices listed (e.g., advertising, freight andshipment services)?
Reply 209.
SeeReplies 76,77.
Question 210.
What proportions ofimports andexports aretraded through these state-owned trade
enterprises? Please provide alistofthecompany names andcommodities traded byeach. Do
these organizations have exclusive orspecial privileges withrespect totheexport and/or import
ofcertain products ordotheycompete withprivate sector alternatives inUkraine?
Reply 210.
SeeReplies 76,77.
Question 211.
TheMemorandum states thatspecial economic zones (SEZs) fallintovarious categories,
including foreign trade, research anddevelopment, tourism andrecreation, banking andinsurance
(off-shore), andcross-border trade. Under what conditions willforeign investors andfirms be
permitted tooperate inthese SEZs? Also, willforeigners beabletooffer these services inareas
thatarenotdesignated asSEZs?
Reply 211.
Asstated intheMemorandum, special economic zones aredefined bytheLawofUkraine
"OnGeneral Principles ofFormation andOperation ofSpecial (Free) Economic Zones" thatestablishes
theprinciples andtheorder oftheformation ofthese zones inUkraine anddescribes theirtypes. At
thesame time, theLawsetsforth thatadecision ontheformation ofevery particular economic zone
must beapproved bytheSupreme Rada. Atpresent there arenoSEZs running which iswhyitis
notpossible toelaborate onwhatever privileges.WT/L/20
Page108
Question 212.
Areimports from theSEZs which enter intothecommerce ofUkraine (i.e.soldinUkraine)
subject totheusual import charges andregulation? Ifthere areexceptions, please provide details.
Reply 212.
Incompliance withtheLawofUkraine "OnUnified Customs Tariff" (Article 21)duty-free
import operations areallowed forproducts carried intothese zones forfinalconsumption andexport
fromthese zones intheUkrainian territory andoutside fromtheterritory above ifthese products have
theorigin ofthese zones. Thesizeoftheprivileges andtheorder oftheirgranting aresetforth by
theSupreme Rada byadopting alawonevery suchzone. Thedetails canhardly bespecified because
oftheabsence ofsuchzones inUkraine.
Question 213.
WhatisUkraine'scurrentlegislationwithregardtocopyrightandrelatedrights,trademark
rights, rights related togeographical indications, rights toindustrial designs, patent rights, rights
related tolayout-designs (topographies) ofintegrated circuits, andrights related totheprotection
ofundisclosed information? Arethere anyplanned legislative changes, andifso,what isthestatus
ofthese?
Reply 213.
SeeReplies 82through 110.
Question 214.
Whatisthebasisonwhichforeignershaveaccesstothefacilitiesofferedbythedomesticregime?
Reply 214.
Thebasis istheLaws "OnForeign Investments", "OnForeign Economic Activities", "On
Investments", "OntheStateProgramme ofEncouragement ofForeign Investments", andthelegislation
thatregulates economic activities inUkraine (TheCivil Code ofUkraine etc.).
*Question 215.
Arethere anyforwhich Ukraine doesnotnowaccord national treatment toforeigners?
Reply 215.
Question 216.
Does Ukraine grant tothenationals ofanycountry anyadvantage, favour, privilege, or
immunity which Ukraine doesnotgrant tonationals ofother foreign countries? Ifso,please
describe andindicate onwhat basis thenationals ofoneormore countries aremore favoured
thanthenationals ofother countries.WT/L/20
Page109
Reply 216.
NoUkraine doesnotgrant anyprivileges tonationals which itdoesnotgrant tonationals of
theother foreign country.
Question 217.
Whatarethecivil,criminalandadministrativeproceduresfortheenforcementofintellectual
property rights?
Reply 217.
SeeReplies 82through 110.
Question 218.
With regard totheenforcement ofintellectual property rights, arethere anyinstances
inwhich Ukraine doesnotnowaccord national treatment toforeign right holders i.e.treatment
nolessfavourable thanUkraine accords toitsownnationals?
Reply 218.
SeeReplies 82through 110.
Question 219.
With regard totheenforcement ofintellectual property rights, arethere instances inwhich
Ukraine accords toforeign right holders from oneormore countries access torights andremedies
denied toforeign right holders from other countries? Ifsuchdifferential treatment exists, please
describe thebasis onwhich thismore-favoured treatment iscurrently offered.
Reply 219.
No,there isnodifferential treatment, seeReplies 82through 110.
Question 220.
Could Ukraine elaborate onthenature ofitspreferential trading arrangements withthe
Russian Federation, Belarus, Lithuania, andtheEconomic Union oftheCIS? Please givedetails
regarding themargins ofpreference andproduct coverage. What percentages ofimports from
thesubject countries receive duty-free treatment? Which trade agreements await ratification?
When isratification ofthese agreements expected?
Reply 220.
Incompliance withtheLaw"OnInternational Agreements ofUkraine" allagreements that
require thechanging oftrade regime should beratified bytheSupreme Rada. Nevertheless, the
agreements onfreetrade withRussia andByelorussia (concluded before adoption ofthisLaw) are
effective, while theagreements withtheCISStates andLithuania arenotratified andarenoteffective.
Only25percentoftheimport fromRussian Federation areduty-free. Mostimportant products importedWT/L/20
Page110
toUkraine (oil,gas,wood, non-ferrous metals) make anexclusion fromthefree-trade regime conditions.
SeeReplies 117,118.
Question 221.
TheMemorandum states thatthe"Organization oftheBlack SeaEconomic Cooperation
isneither apayments union norafreetrade zone, though oneofitsobjectives istheestablishment
ofsuchzones." Please elaborate onthecurrent roleoftheOrganization ofBlack SeaEconomic
Cooperation, andhowitoperates. What istheexpected future roleofthisorganization, including
thepotential forandtime-frame fortheestablishment ofanysuchfreetrade area(s)?
Reply 221.
TheBlack SeaEconomic Cooperation wasformed bytheinitiative ofTurkey onJune251992
proceeding from theDeclaration signed byeleven States oftheBlack Seazone, including Ukraine..
Oneofthemajor objectives ofthisOrganization consists increation oftheconditions forfreemovement
ofthegoods, services andcapitals intheframework ofthisOrganization. Noagreements havebeen
concluded forachievement ofthisgoal. Inconnection withnotable political, economic andother
differences between themember States, Ukraine considers thisOrganization tomake animportant
stabilizing factor intheBlack SeaRegion andisinterested inimplementation ofsome industrial and
investment projects initsframework. InNovember 1993 Ukraine submitted forconsideration ofthis
Organization acostal tradeproject incorporating theelements ofafreetradezone. Sofarthisproject
failed tofindapproval among member States.
Question 222.
CanUkraine giveanindication oftherange ofgoods andservices inthestate-controlled
sector whose prices arestillregulated bytheState?
Reply 222.
SeeReply 150.
Question 223.
Under what circumstances may"seasonal customs taxes" beapplied? Would Ukraine
confirm thatthese customs taxes areinlieuofordinary import duties? Areanyseasonal customs
taxes currently applied? Ifso,please provide thedetails. Howlongbefore theapplication ofsuch
customs taxes isanofficial announcement published toacquaint traders etc.ofthechange?
Reply 223.
SeeReply 12.
Question 224.
Would Ukraine please provide asummary oftariff linessubject tospecific ormixed duties?WT/L/20
Page111
Reply 224.
There arenospecific ormixed duties.
Question 225.
Special duties, additional toimport duties, maybelevied incertain circumstances including
where goods areimported under conditions which caninflict substantial damage toproducers
ofsimilar goods. Could Ukraine please explain ingreater detail howthemarket circumstances
under which these duties would beapplied differ from those fortheapplication ofanti-dumping
andcountervailing duties? What arethe"special laws" which cover theapplication ofspecial
duties? How arethese measures consistent withtheGATT 'svarious safeguard provisions?
Reply 225.
SeeReplies 12,13.
Question 226.
DotheUkrainian lawsgoverning theapplication ofanti-dumping duties takeintoaccount
relevant GATT provisions?
Reply 226.
SeeReply 17.
Question 227.
Howistheadvalorem feeforexecuting required customs procedures consistent withthe
requirement ofGATT Article VIIIthatsuchfeesshallbelimited "inamount" totheapproximate
costofservices rendered?
Reply 227.
SeeReplies 26,34,136.
Question 228.
Would Ukraine please confirm thatthe28percentVAT andtheexcise duties referred
toatpage 17arealsoapplied tolikedomestic products?
Reply 228.
SeeReply 28.WT/L/20
Page112
Question 229.
Import quotas andlicensing applied togoods forcalendar year1994 were terminated in
March 1994. CanUkraine provide asummary ofthegoods subject tothese non-tariff barriers?
Could Ukraine giveanassurance thatimport quotas would notbeusedasfrom accession and
thatimport licensing would beapplied inaccordance withtheAgreement onImport Licensing
Procedures?
Reply 229.
SeeReply 38.
Question 230.
Arethere anyother non-tariff measures placed ontheimportation ofgoods? Ifso,please
provide details.
Reply 230.
No,there arenosuchmeasures.
Question 231.
Does Ukraine consider thatitssanitary andphytosanitary measures would meet the
provisions oftheWTO Agreement onSanitary andPhytosanitary Measures?
Reply 231.
SeeReply 48.
Question 232.
Does Ukraine maintain anyexport subsidies? Ifso,could details beprovided, including
thetime-frame fortheir removal?
Reply 232.
SeeReplies 52,55,186.
Question 233.
The"Special Regime forExports" would appear toactasabarrier toexports anda
deterrent toforeign investment intheresources sector. HowdoestheUkraine Government intend
tobring thisregime intoGATT conformity?
Reply 233.
SeeReply 54.WT/L/20
Page113
Question 234.
Onpages 22-23 reference ismade to"export stimulation measures, including subsidies"
implemented under Resolution 212of22March 1993andResolution 421of5June1993. Would
Ukraineprovidedetailsoftheoperationofthesemeasuresincludingthesectors/industriesbenefiting
from them?
Reply 234.
SeeReply 51.
Question 235.
Areanyother assistance measures provided tocompanies andState-controlled enterprises
involved inforeign trade inorder topromote exports ofgoods?
Reply 235.
SeeReplies 51,52,55.
Question 236.
5.8percentofexpenditure inthe1994budget isallocated tofinancing theintermediaries
thatexport goods purchased from producers. What form doesthisfinancing take?
Reply 236.
SeeReply 51.
Question 237.
Arethemeasures referred tointheprevious questions consistent withGATT Article XVI
andtherelevant provisions oftheWTO Agreement onSubsidies andCountervailing Measures?
Reply 237.
SeeReply 54.WT/L/20
Page114
Question 238.
Could Ukraine please provide adescription ofitsagricultural policies?
Thisshould include:
thenature anddegree ofState control; thetypeandlevelofdomestic support forvarious
sectors; theState pricing andpurchasing systems; limits onfreetrade including import
andexport barriers; and,plans forprivatization andliberalization.
Inaddition tothefollowing specific questions, wemaysubmit further questions inthe
future.
Reply 238.
SeeReply 55,56,58.
Question 239.
What roledoestheUkraine Government playintheproduction andmarketing offood?
Does theUkraine government control theproduction andmarketing offood? Does theUkraine
government subsidize theprice offlour andbread fordomestic consumption?
Reply 239.
SeeReplies 55,56.
Question 240.
Does theUkraine Government subsidize farming input, such asseeds, fertilizer, fuel,
machinery, transport, handling andstorage? What isthetotalcostofthesupport regime forthe
Ukraine wheat andcoarse grains industry?
Towhat extent doUkraine farmers benefit from thisassistance? Who arethemajor
beneficiaries ofthissupport regime?
What doestheUkraine Government intend todotoreduce thissupport inthecontext
ofitsGATT/WTO accession?
Reply 240.
SeeReplies 55,56,59.WT/L/20
Page115
Question 241.
Does theUkraine Government subsidies grain exports?
Page 24notes theUkraine plans toexport 5million tonsofgrain in1994
What istheaverage difference between thedomestic procurement price forwheat and
coarse grains andtheprice atwhich grain exports aremade?
What istheroleof"bedrock" and"indicative" prices indetermining domestic andexport
prices ofgrain?
Isthetrade tobeconducted forcashorwillitinvolve barter and/or credit arrangements?
Reply 241.
SeeReplies 5,55.
Question 242.
Areimports ofwheat andcoarse grains subject toimport quotas andlicensing? How
doestheUkraine Government plantohandle these measures inthecontext ofitsaccession?
Reply 242.
SeeReplies 10,35,36,37.
*Question 243.
Willplanned agricultural exports for1994 include dairy products? Would Ukraine also
provide details onanyexport subsidization arrangements fordairy?
Reply 243.
Question 244.
Would Ukraine please provide up-to-date statistics onUkrainian dairy production,
consumption andtrade?
Reply 244.
SeeReplies 59,78,193.
Annual Consumption ofDairy Products (kg.perhead)
1990 1991 1992 1993
Meat andmeatproducts 68 65 53 46
Milk andmilkproducts 373 346 285 275WT/L/20
Page116
Annual Consumption ofDairy Products (kg.perhead) (cont'd)
1990 1991 1992 1993
Eggs (pcsperhead) 272 256 227 193
Annual SaleofDairy Products (thousand tons)
Meat andmeatproducts 2,384 2,012 1,521 1,113
Milk andmilkproducts 6,416 5,503 3,933 2,552
Eggs (miopcs) 6,883 5,408 4,463 3,146
Question 245.
Wewould alsobeinterested toreceive information onanynon-tariff import barriers to
dairy imports.
Reply 245.
Specialnon-tariffmeasureslimitingtheimportofdiaryproductsdonotexist.Therearetechnical
barriers which consist inacompulsory certification ofthefoodindustry products andsanitary standards.
SeeReply 43and48.
Question 246.
What proportion ofUkraine 'simports aresubject totariff exemptions orreductions as
aconsequence ofUkraine 'strade agreements?
Reply 246.
Atpresent effective aretradeagreements withRussia andByelorussia. Import fromByelorussia
andRussia for10months of1994 made 4.1percentand78percentofthetotalvolume ofimport,
respectively.
Allowing forthefactthatallsupplies ofrawmaterials andenergy carriers from Russian
Federation made 80percentoftheabove figure thatarenotcovered bythefree-trade exemption regime.
Question 247.
AreanyofUkraine 'sservices sectors closed completely toforeign suppliers?
Reply 247.
No,there arenosuchsectors.WT/L/20
Page117
Question 248.
Areanysectors open toforeigners onlyiftheyform ajointventure withUkraine-owned
companies?
Reply 248.
Incompliance withtheLaw"OnEntrepreneurship" theNational Treatment Regime extends
equally toforeigners. TheLawintroduces restrictions onsome types ofeconomic activities irrespective
ofnationality. Inparticular, theproduction ofnarcotics, armaments, explosives, securities andbills
canbecarried outonlybythestate-owned enterprises. Withnolicence issued bytheCabinet ofMinisters
ofbyauthorized bodies noeconomic activity canbecarried outinthefollowing spheres:
prospecting andoperation ofdeposits ofrawmaterials;
repair ofsport, hunting andother arms;
production andsaleofmedical preparations;
production ofalcoholic bothstrong andlightdrinks;
production ofcigarettes;
health protection practice;
veterinary practice;
legalpractice;
running gambling business;
saleofalcoholic drinks;
production, purchase andoperation ofcommunications systems operated intheframework
oftheNational integrated communications system;
domestic andinternational cargo andpassengers transportation services;
topographic surveying;
production ofproduction control instrumentation;
production ofradioactive substances andionization radiation sources;
design, construction andoperation ofnuclear power stations;
mediation ondealings withprivatization certificates.
Tocarry outeconomic activities, thesubjects oftheseactivities should beregistered asrequired
bytheLaws ofUkraine.WT/L/20
Page118
Question 249.
Arethere any service sectors subject torestrictions onmodes ofsupply (cross-border
supply, commercial presence, etc.)?
Reply 249.
There arenosuchsectors.
Question 250
What rules andregulations apply toimports offinancial, telecommunications, health,
education andprofessional services?
Reply 250
SeeReply 248.
*Question 251.
IsUkraine aparty toanyagreements concerning themutual recognition ofqualifications
ofservice supplier?
Reply 251.
Question 252.
What aretherules concerning temporary residence inUkraine byforeigners engaged in
trade inservice?
Reply 252.
According tothelegislation, thefollowing entities could beinvolved inforeign tradeactivities
inUkraine:
-legalentities having thepermanent residence inUkraine andbeing registered onthisterritory;
foreign legalentities, theiraffiliates, departments having thepermanent residence inUkraine;
-physical persons either thecitizens ofUkraine orthepersons without Ukrainian citizenship,
which havethepermanent residence ontheterritory ofUkraine;
-groups ofphysical persons andlegalentities, which havenotlegalstatus inUkraine, buthave
thepermanent residence ontheterritory ofUkraine;
-jointventures.
Allabove mentioned entities, irrespective oftheirformofownership, havetheequivalent rights
forallforeign trade activities, which arenotexpressly forbidden bylaw.Thesame treatment applies
toforeign companies. Thecreation andfunctioning ofenterprises withforeign participation are
determined bytheLaw"OnEconomic Companies". Foreign firms could beestablished either asWT/L/20
Page119
100percentforeign owned firms orjointventures orasaresult ofacquisition byforeign investor
ofapartofapreviously existing firm. These companies areregistered bythegovernmental local
authorities oftheregion orcitywhere thecompany islocated. TheMinistry ofFinance establishes
andupdates theregister ofjointventures.
According totheLawofUkraine "OnForeign Economic Activities" aforeign legal entity
involved ineconomic activities inUkraine andhaving thereitspermanent representation, mustregister
andobtain acertificate from theMinistry ofForeign Economic Relations ofUkraine. Inaddition to
aregistrationfeeofUS$2,500,thefollowingdocuments,officiallycertifiedandlegalisedintheconsulates
oftheEmbassies ofUkraine, arerequested:
- theapplication andtherequest forregistration;
- theletterfromthetraderegister ofthecountry where theforeign entity hastheofficially
registered office;
- bankinformation;
- theauthorization forrepresentative functions.
Furthermore, within onemonth ofstarting itsactivities, theforeign legalentity mustregister
andreceive acertificate fromtheMain Ukrainian TaxInspection aswellasregister withthelocaltax
inspection inthelocation ofitsrepresentation office, regardless ofthefactwhether thefirmissubject
totaxation inUkraine. Thecontrol ofeconomic activities ofthese entities iscarried outbytheTax
Inspection andtheState Customs Committee.
Question 253.
Which ofthebilateral economic, technical cooperation andtrade agreements signed by
Ukraine cover trade inservices?
Reply 253.
SeeReplies 117,118.
Question 254.
Doanyofthese agreements confer preferred orreciprocal supplier status oncompanies
from signatory countries?
Reply 254.
SeeReplies 117,118.
Question 255.
How andwithin what time-frame doestheUkraine propose toimplement itsobligations
under theAgreement onTrade Related Aspects ofIntellectual Property Rights (TRIPs)?WT/L/20
Page120
Reply 255.
SeeReply 90,91,110,111,112.
Question 256.
DoesUkraineconsiderthecurrentdomesticlegalframeworktobesufficientfortheadequate
andeffective protection ofintellectual property rights? How doesUkraine propose tocover any
deficiencies?
Reply 256.
SeeReplies 83,90,91.
Question 257.
What stepswillUkraine takeinregard toobligations under theTRIPS Agreement relating
toenforcement ofintellectual property rights inUkraine?
Reply 257.
SeeRelies 83,90,91.
Question 258.
Asweunderstand thatUkraine isnotaparty totheBerne Convention, wewould be
interested indetails ofcopyright protection afforded bypresent Ukrainian Law.
Reply 258.
SeeReply 92.
Question 259.
Ukraine 'seconomic policy issaidtoinclude State support tostrategic areas oftheeconomy:
power engineering, metallurgy, coalandchemical industries. Please specify howthisState support
isimplemented (through subsidies, price controls, procurement practices orother measures) and
whether plans existforitsphasing out.
Reply 259.
SeeReply 1.
Question 260.
HowdoestheGovernment ofUkraine intend tomake the"substantial cutsinnon-critical
imports inorder toreduce thetrade deficit below 5percentofGDP"?WT/L/20
Page121
Reply 260.
SeeReply 2.
Question 261.
Istheattraction ofprivate investment limited inanyway? Areanysectors excluded from
foreign investment?
Reply 261.
SeeReplies 197,200,244.
Question 262.
Which staple dietproducts arestillsubject tosubsidization attheretail market level?
Reply 262.
SeeReply 145.
Question 263.
Please provide alistofproducts stillsubject toState-pricing andindicate whether there
areanyplans tophase these out.
Reply 263.
SeeReply 145.
Question 264.
What sectors arestill State-controlled? What isthepricing-policy ofstate-owned
enterprises? Towhat extent dotheybenefit from anykindofsubsidies, direct orindirect?
Reply 264.
SeeReplies 145,244.
Question 265.
How doesthesystem ofprior declaration ofprice alterations work andtowhat sectors
doesitapply?
Reply 265.
SeeReply 145.WT/L/20
Page122
Question 266.
Itseems asystem ofadministrative controlling ofprices isbeing setup.Please explain
more specifically howthissystem istobeimplemented, inparticular howthemark-up willbe
limited to55percentofthemanufacturer 'sprice regardless oftheprice ofagood. Please elaborate
ontheinfluence ofprogressive taxation onprices restriction.
Reply 266.
SeeReply 150.
Question 267.
Inorder toprevent theexport from Ukraine ofproducts atdumping prices, bedrock
prices havebeendetermined formajor types ofexported goods. Indicative prices havealsobeen
forgoods subject toquoting andlicensing. Please provide bedrock prices formajor types of
exported products, inparticular steel. Please explain theprocedures used tocalculate and
administer bedrock andindicative prices aswell astheir adjustment.
Reply 267.
SeeReply 5.
Question 268.
Although theattraction offoreign investment isapartofgovernment policy, itappears
thattheprocess ofcorporatisation, initsfirststage, doesnotencourage foreign ownership of
shares. Areanypolicy changes expected toencourage greater foreign participation inthe
privatization process?
Reply 268.
SeeReplies 65through 70,214.
Question 269.
Goods imported intotheUkraine aresubject toimport duties. Please indicate whether
there aremaximum levels ofimport duties authorized bylawandwhoisempowered tomodify
them.
Reply 269.
SeeReplies 10,19,20,55,117,225.
Question 270.
Please provide more details onthefeesrelated tocustoms clearance.WT/L/20
Page123
Reply 270.
SeeReplies 26,34,136.
Question 271.
Please expand onthecircumstances within which a"special duty" may belevied inexcess
ofnormal customs duties. Dotheconditions, which needtobefulfilled, conform totheAgreement
onSafeguards included intheFinal Act? Istheimposition ofaspecial duty asa"protective
measures against discriminatory orinimical action ofother States" compatible with WTO
provisions? What are"regular hostile actions directed against general interests ofUkraine"?
Reply 271.
SeeReply 12.
Question 272.
Please provide acopyofdomestic anti-dumping, countervailing dutyorsafeguard laws,
ifthese havebeenenacted. Ifsuchrelevant lawsdonot(yet)exist, bywhich means doesUkraine
expect toabide byWTO laws? Would theprovisions ofWTO anditsannexed Agreements have
direct effect (i.e.bedirectly applicable) within Ukraine?
Reply 272.
SeeReply 17.
Question 273.
How cananti-dumping duty beimposed ontheexport ofgoods? Canthisbedone
autonomouslyoronlyaftertheinitiationofanti-dumpingproceedingsinanotherimportingcountry?
Issuchadutyimposed onanMFN basis oronlyonexports destined aspecific import market?
Reply 273.
SeeReplies 12,13,15,133.
Question 274.
Please provide more details onthelevying of"seasonal customs taxes". What isthe
economic rationale behind them.
Reply 274.
SeeReply 12,133.
Question 275.
PleaseindicatefullywithwhichRepublicsoftheex-USSRUkrainehaspreferentialrelations,
andwhat theircharacter is(i.e.customs union, free-trade area). What ismeant bytheformationWT/L/20
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of"special customs zones" withUkraine? Would these Agreement comply withtheprovisions
oftheWTO (i.e.Article XXIV GATT 1994, Article VCATS)?
Reply 275.
SeeReplies 117,118.
Question 276.
When acustoms taxremains unpaid penalty sanctions canbetaken without theright to
appeal. Please justify theabsence ofaright toappeal.
Reply 276.
Incompliance withtheLaw"OnUnified Customs Tariff" (Article 25),onehastherightto
appeal astopenalty sanctions. Incasecustoms dutyisnottimely paiditshould bepaidonadecision
oftheCustoms bodies withnorighttoappeal.
Question 277.
Isthevalued-added taxof28percentlevied before orafter imposition ofthecustoms
duty? Isthe28percentVAT levied equally onallproducts regardless oftheir origin, andon
alldomestic products? CantheVAT paidupon importation under allcircumstances bededucted
from VAT tobepaidatlater stages ofprocessing orsale?
Reply 277.
SeeReply 28.
Question 278.
Areexcise duties andother taxes applied inthesame manner andequally onallimported
products regardless oftheir origin andonalldomestic products? Ifthere isanydiscrimination,
what time-table isforeseen foritsphasing out?
Reply 278.
SeeReply 30.
Question 279.
Wewould appreciate provision ofalistindicating theproducts onwhich anexcise duty
islevied andtherates imposed.
Reply 279.
SeeReply 30.WT/L/20
Page125
Question 280.
Please explain whyresidents arefreetopaycustoms taxes inlocalcurrency whereas non-
residents must paysuchtaxes infreely convertible currencies. Isthere atime-frame toendthis
form ofdiscrimination?
Reply 280.
SeeReply 34.
Question 281.
Pleaseconfirmthatnoquotasorlicensingareappliedtogoodssubjecttoimports,asdecided
inDecember 1993.
Reply 281.
SeeReply 38.
Question 282.
Istheterm "considerable processing" thesame asthecriterium ofthe"last substantial
transformation" towhich theFinal Actrefers?
Reply 282.
SeeReply 178.
Question 283.
Acertificate must accompany imported products andconfirm compliance oftheproducts
withtheobligatory requirements oftherespective regulations thatareeffective inUkraine. The
certification agency issues andrecognizes these documents. Please provide more details about
theapplication procedures. Please explain whether theUkrainian system takes account of
international standards.
Reply 283.
SeeReply 43.
Question 284.
Which products aresubject tomandatory certification upon importation inUkraine?
Reply 284.
SeeReply 43.WT/L/20
Page126
Question 285.
Referring tothesecond paragraph, theFinal Actprovides foraprocedure opposite to
thatapplied inUkraine: onlyifinternational standards areinappropriate inaclearly defined
andlimited number ofcases maynational standards apply. Please indicate which initiatives
willbetaken inthenearfuture tofoster theadoption ofinternational standards inUkraine.
Reply 285.
SeeReply 48.
Question 286.
Please indicate thecompatibility ofgroup andindividual quota 'swithGATT/WTO rules,
including withrespect tonon-discrimination (Articles IandXIII).
Reply 286.
Theuseofexport/importquotasisasafeguardmeasuretakeninextremeconditionsincompliance
withArticles XI,XII,XIX, XXofGATT (TheLawonForeign Economic Activities, Article XIX).
Question 287.
Thelistofproducts subject toexport licensing andquota 'sin1994 isextensive. Please
provide atHS6digit level latest listofproducts which areinvolved, andtheapplicable quota
foreachproduct. Isthere atime-table tophase-out these restrictions?
Reply 287.
SeeReply 10.
Question 288.
What proportion oftotalexports from Ukraine issubject toexport licensing?
Reply 288.
SeeReplies 49,50.
Thefollowing products aresubject toexport licensing:
Grains 1001-1008 (except for1008.3.0000);
Coals 2701;
Wastes ofnoble metals ormetals engraved withnoble metals 7112;
Pigiron7201;
Wastes offerrous andnon-ferrous metals 7204, 7404, 7503, 7602, 7802, 7902, 8002.
Thevolume ofexport products subject toquotas andlicences makes 4percentofthetotal
volume ofexport forthefirstsixmonths of1994.WT/L/20
Page127
Question 289.
ThelawontheForeign Economic Activity ofUkraine, inparticular itsArticle 16,includes
provisions which aresubstantially different tothose incorporated intheWTO. Specific mention
canbemade of:
Theconditions under which atrade restrictive measure maybetaken tosafeguard the
Balance ofPayments.
Theconditions under which anexport restrictive measure maybetaken, which Article
XIGATT limits totemporary cases ofcritical shortages offoodstuffs orother products
essential totheexporting contracting party.
Awithdrawal ofconcessions canonly beimplemented after therelevant WTO dispute
settlement procedures have been respected andsuchauthorization isgranted.
When doestheGovernment ofUkraine intend tomodify, where necessary, therelevant
parts ofthelawontheForeign Economic Activity? WillMembers oftheWorking Party
begiven adraft induecourse?
Reply 289.
Allowing fortheUkraine 'saccession toGATT/WTO, animportant factor oftheeconomic
reforms inUkraine, theUkrainian Government isbeing drawn updraftlegislative regulations related
withbringing ofUkrainian Laws intoconformity totheGATT/WTO principles andrules. TheLaw
onForeign Economic Activities wasoneofthefirstlawsadopted inindependent Ukraine. Atpresent,
itissubjected toaconsiderable revision.
Thedraftlawcanbepresented given totheMembers oftheWorking Party afterthework
overitiscompleted.
Question 290.
Willthesystem ofspecial orexclusive trading withrespect tothespecified products be
phased out?Theforeign exchange andtrade balancing requirements contradict WTO rules and
principles. When willthese bephased out?
Reply 290.
Incompliance withtheanti-monopolism measures inForeign Economic Activities, (Article 20
oftheLaw"OnForeign Economic Activities"), onlyspecially authorized organizations areallowed
toeffect export/import ofarmaments, explosives, nuclear materials, noble metals andalloys, precious
stones, narcotic materials, fineartpieces andantique items from themuseum funds. Thepermit for
export/importofthesegoodsfallsintocompetenceoftheCabinetofMinisters,whichdoesnotcontradict
Articles XXandXI.
Incompliance withtheDecrees oftheCabinet ofMinisters "OnSpecial Regime oftheExport
ofSome Goods" No.16-92 of31December 1992and"OnStateRegulation ofProduction, Trade and
Export ofSpirit", aspecial exporters regime hasbeenestablished fortheexport ofcoals, spirits, non-
ferrous metals, rare-earth metals including powders, wastes, noble metals ore,petroleum products,WT/L/20
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electric power which doesnotcontradict Articles XX,XIofGATT. Thisregime iseffective nowas
well. Fortheperiod these Decrees wereeffective, anumber oforganizations irrespective oftheform
ofownership, including foreign andmixed ventures, were authorized toexport theabove-specified
goods.
Question 291.
Does thesystem of"government contracts" apply onlytogoods subject toexport quotas?
Ifso,willthegovernment contracting system beeliminated inparallel toaphasing-out ofexport
restrictive measures?
Reply 291.
SeeReplies 55,58,78.
Question 292.
Aretheintermediaries thesame astheenterprises referred tounder the"Special Regime
forExports"? Ifnot,which arethecriteria onwhich intermediaries aredesignated?
Reply 292.
Yes,theyaretheenterprises referred tothe"Special Regimes forExports".
Question 293.
Pleasespecifymorepreciselywhetheranylegalorotherrestrictionsexistongoodsintransit,
orwhether freedom oftransit isguaranteed. What ismeant bytheterm"under customs control"?
Isthere adifference intreatment between goods originating intheIndependent States which are
intransit andgoods from other third countries? Ifthere isadifferent treatment, please explain
itsfunctioning andeffects.
Reply 293.
Incompliance withtheLaws ofUkraine thefreedom oftransit isguaranteed except forcases
specified inReply 39.Also, notransit ispermitted forthegoods prohibited forexport andimport for
considerations ofnational security.
There isnodifference intreatment between goods originating from CIScountries which are
intransit andgoods from theother thirdcountries.
SeeReplies 117,118.
Question 294.
What internal agricultural support mechanisms existandforwhich products? What direct
orindirect subsidies aregiven foragricultural production? How doesthevalue ofsuchsupport
compare tothetotalvalue ofagricultural production?WT/L/20
Page129
Reply 294.
SeeReply 58.
Question 295.
What export subsidies aregiven forwhich agricultural products? Caneveryone export
witharefund oronlycertain agencies?
Reply 295.
SeeReplies 55,56,58.
Question 296.
Wewouldappreciatethesupplyofalistofalltariffandnon-tariffmeasuresforagricultural
products foreachtariff line.Forwhich products doquotas andlicensing agreements exist? How
arethese administrated?
Reply 296.
SeeReplies 13,38,163.
Question 297.
Wewould appreciate more information ontheapplication of'special duties toagricultural
products.
Reply 297.
SeeReplies 12,13,15,16,17.
Question 298.
Forwhich products does State-trading exist? Please describe extensively what trading
organizations play, andhowtheyoperate.
Reply 298.
ForlistoftheState Trading Enterprises seeReply 141.
TheState External Trade Enterprises areintended forsaleofproducts under State contracts
andorders (seeReply 78).Thevolume ofexport under States contracts approximated to10.2percent
ofthetotalvolume ofexport in1993 andinthefirsthalfof1993 itmade 8.5percent.
AlsoSeeReply 51.WT/L/20
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Question 299.
Companies oftheagro-industrial sector benefit from apreferential 11percentincome
taxrateasagainst anormal 22percentrate. Doforeign companies alsobenefit from this?
Reply 299.
Yes,these conditions extend toforeign companies aswell.
Question 300.
What period oftimeisconsidered necessary fortheUkrainian Government tomaintain
thepresent system ofmultiple exchange rates?
Reply 300.
SeeReplies 64,129,196.
Question 301.
What period oftimedoestheUkrainian Government envisage toneedbefore theunifying
exchange rate,eliminating the50percentsurrender requirement, andestablishing anintegrated
exchange market?
Reply 301.
SeeReplies 64,129,196.
Question 302.
Isthepresent electronic system ofinterbank payments integrated, i.e.canbanks freely
supply eachother withforeign currency andistheexchange rateidentical inallparts ofUkraine?
Reply 302.
Asdescribed bytheMemorandum, thebanking system inUkraine incorporates theNational
Bank ofUkraine andcommercial banks. Thecompetence oftheNational Bank extends toemission,
Statecredit policy, stabilization ofthenational currency andsupervision overthebanking system. The
National Bank isasubordinate totheSupreme Rada andenjoys alaw-making right.
Commercial transactions areeffected bythecommercial banks. Inoperations involving foreign
currency, acommercial bankhastoobtain aspecial permit fromtheNational Bank. Depending upon
aspecific typeofthepermit thebanks cancarry outoperations either inthedomestic currency market
orsetupcorrespondence accounts withforeign banks.
SeeReply 129.
Yestothesecond halfofthequestion.WT/L/20
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Question 303.
When does Ukraine expect tobeinaposition tomove towards Article VIII IMF
Membership, i.e.fullexternal current account convertibility, including theremittance ofprofits?
Reply 303.
Incompliance withPresidential Decree "OnPerfection ofMonetary Regulation", starting from
1November 1994, anofficial carbovanets-to-foreign currency convertibility hasbeen established
including theremittance ofprofits.
AlsoSeeReply 129.
Question 304.
What aretheexact rules oftheNational Bank ofUkraine regarding theremittance abroad
ofprofits offirms? Does adistinction exist between foreign investment covered bytheState
Programme forEncouraging Investment inUkraine andother investment?
Reply 304.
SeeReplies 4,60,65,67,68,69,70,129,200,204,214,303.
Question 305.
Please elaborate onthepresent restrictions withrespect toprivate ownership ofland, both
asregards domestic andforeign natural orlegal persons.
Reply 305.
Therightofprivate ownership oflandforUkrainian citizens isprovided forbytheLand Code
ofUkraine (Article 6):acitizen canbegiven landtoownership forfarming purposes, construction
ofahouse, service facilities, gardening, andforconstruction ofacountry cottage andgarage. The
Presidential Decree "OnMeasures toAccelerate Reforms inAgricultural Production" hasmade up
anewfeature. Thedecree hasestablished theorder ofprivatization oflandusedbyagricultural
enterprises andorganizations.
Afarmer maygeta50ha.landofagricultural landor100ha.ofwhatever landintoprivate
ownership fromthelocalself-government bodies intheorder thatisbeing developed bytheCabinet
ofMinisters.
Inthesame manner thelands canbegiven tothemembers ofthecollective farms, joint-stock
companies thatwould decide togointofarming.
ThisDecree allows theowners ofthelands mayvoluntarily form agricultural enterprises,
joint-stock companies andtheothercollective enterprises, exchange, leaseandselllandetc,butwithout
changing theabove-designated purpose ofthelandandonlytocitizens ofUkraine. Thus, theLaws
ofUkraine donotprovide forprivate ownership oflandforforeign natural andlegalpersons.WT/L/20
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Question 306.
Wewould greatly appreciate more extensive information regarding Government
Procurement inUkraine. Generally, arethese lawsgoverning procurement and,ifso,could these
beprovided? Could thepresent procurement system bedescribed andhowitisexpected toevolve?
Reply 306.
SeeReplies 74and75.
Question 307.
Please provide acomplete listofthepurchasing authorities mentioned andreferred to
as"State bodies ofgovernment aswellaslocalcouncils ofpeople 'sdeputies". Wewould appreciate
provision, inaddition ofalistofthose entities involved inforeign economic activities which on
voluntary basis areauthorized toexecute government contracts. Finally please indicate the
administrative level(central, regional orlocal) associated totheauthorities mentioned above.
Reply 307.
SeeReply 141.
Incompliance withtheResolution No.421of5May1993 "OnPayments forExport ofthe
Products under State Orders"and Resolution No.212of22March 1993, theState contracts with
enterprises thatproduce export products canbeconcluded bythefollowing governmental bodies and
theirsubordinates:
Health Ministry: Ukrmedbioprom (concern)
Ukrphytotherapy (consortium)
Ecosorb (consortium)
Ministry ofIndustry:
enterprises ofUkrexpolis
enterprises ofUkrzovnishprom
enterprises ofSlavutich Ruda
enterprises ofSlavutich Stal
enterprises ofKryvorizhmarket
Ministry ofAgricultural Production:
concern "Ukragrotekhservis"
concern Ukrmyaso
Association Ukragrokhim
Association Ukragrobiovet
Association Ukrplemobyednanie
concern Ukrmolprom
State Committee forResources:
firmUkrbarimpex
firmOdessapromashimportWT/L/20
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Under intergovernmental agreements:
Ukrainian State Departments fortheSupply ofMaterials.
TheState Committee forFood Industry
Ukrzukor
Ukrspirt
Ukrselprom
Ukroilyazhirprom
Ukrkonservmoloko
TheKievCityState Administration:
KievCommercial Centre
Ukoopspilka
Ukrimpex
Ukrmistsevprom
Ukrbud
Here, itshould bementioned thattheResolution No.212wasannulled in1994(thisResolution
defined theauthorized organizations), while Resolution No.421establishing theorder ofpayments
waseffective tilltheendof1994. Intheframework ofeconomic reforms initiated byPresident Kuchma,
theState contracts system should bereplaced withtheGovernment Procurement System. Theorder
ofplacing State orders hasnotbeendecided on.
Question 308.
Please confirm thatpublic purchasing iscarried outinanopen, competitive andnot
discriminatory basis withrespect toforeign suppliers. Please indicate howtheinvitations totender
forapublic contract arecalled andwhat arethecriteria applied toensure such competitive
tendering. Dointerested bidders have access toinformation ontendering procedures, technical
specifications, evaluation criteria andresults ofthetendering process? Isthere anypossibility
tocontest theawarding ofacontract?
Reply 308.
Incompliance withtheResolution oftheCabinet ofMinisters "OnApproval oftheProvisions
onInternational Sales (Tenders) inUkraine" No.871of21December 1993, public imports purchasing
iscarried outinUkraine inanopen, competitive andnotdiscriminatory basis withrespect toforeign
suppliers. Invitations foropensalesarepublished inthenewspapers "Golos Ukrainy" and"Uryadovy
Kurier" atleast45daysbefore theiropening, while inthecaseofclosed sales, atleast45daysbefore
opening theTender Committee must dispatch theinvitations towould-be participants.
Foreign andUkrainian enterprises irrespective oftheform ofownership mayparticipate in
tenders. TheMinistry ofForeign Economic Relations isresponsible fortheconformity ofthetenders '
organization totheeffective laws. Organization oftenders isexecuted byacustomer orentrusted
organization.
Toholdthetenders, atender committee should beformed incorporating therepresentatives
ofMinistries ordepartments andother interested organizations.WT/L/20
Page134
Thedecisions ofthetender committee should betaken bysimple majority.
Question 309.
Isprocurement byutilities subject toanyregulation?
Reply 309.
TheCivil Code ofUkraine regulates thecontractual-basis contracts. Thesupplies under State
contracts carried outduring 1994 wereregulated bythePresidential Decree "OnStateContracts and
Orders for1994" No.489/93 of28October 1993 andanumber ofResolutions aimed toensure
implementation oftheDecree above.
AlsoSeeReplies 51,78,79.
Question 310.
Please givesome information regarding procurement rules andpractices inrelation to
construction works andservices ingeneral. Please include statistical information onthevolume
ofprocurement operated atthecentral, regional, andlocal level withrespect togoods, works
andservices.
Reply 310.
SeeReply 309.
Question 311.
Arestate-owned trade enterprises different tothe"entities involved inforeign economic
activities" thatarementioned above? Could wehaveacomplete listofthose enterprises aswell
asadescription ofitspurchasing regime?
Reply 311.
SeeReplies 51,52,141,311.
Question 312.
Regarding Special (free) Economic Zones whowould betheauthorities responsible of
procurement inthese zones, theMinistries atthecentral level ortheregional administration?
Isthere anyspecific procurement regime applying tothese areas?
Reply 312.
Since there arenofreeeconomic zones inUkraine, thisquestion isleftopen.WT/L/20
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Question 313.
Please provide alistofthose State-trading enterprises which aregranted exclusive orspecial
rights toimport orexport, andtheproduct groups forwhich suchrights areestablished.
Reply 313.
SeeReply 290.
Question 314.
Willtheexecutive orspecial right toimport orexport incertain categories ofproducts
beprogressively liberalized and,ifso,willtheability ofnewfirms toengage insuchtrade be
granted according toobjective andpublished criteria?
Reply 314.
Intheframework ofeconomic reforms, theCabinet ofMinisters isconsidering thepossibility
ofeliminating thespecial exporters regime described inReply 290.
Question 315.
Pleasespecifywhatcustomsandtaxpreferencesaregrantedtofirmsestablishingthemselves
inaspecial economic zone.
Reply 315.
Preferences aredetermined individually forevery particular economic zone. Sofarnofree-
economic zones havebeencreated intheterritory ofUkraine.
Question 316.
Areanytaxorother advantages, granted tofirms investing inthespecial economic zones
made contingent oneither local content requirements oronexport performance?
Reply 316.
SeeReply 315.
Question 317.
Aregoods produced inaspecial economic zone freetobetransported andsoldwithin
Ukraine? Areanycustoms orother dutyapplied onsuchgoods, when theyaretransported out
ofaspecial economic zoneintoUkraine?
Reply 317.
Incompliance withArticle 24oftheUnified Customs Tariff, admissible isaduty-free export
andimport ofgoods which:WT/L/20
Page136
Areimported intospecial economic zones forfinalconsumption therein;
originate andareexported fromspecial economic zones forconsumption outside thecustoms '
territory ofUkraine;
originally areexported from special economic zones intheterritory ofUkraine;
every particular caseshould bedealtwithbytheSupreme Rada. SeeReply 315.
Question 318.
Please setouttheprecise legalcondition withrespect tooffshore banking andinsurance,
aswellascross-border trade.
Reply 318.
Ukraine willanswer thisquestion afterfurther clarification between ourgovernment agencies.
Question 319.
Docurrent rules inUkraine oncompulsory andnon-voluntary licences forpatent comply
withtheprovisions ofArticle 31oftheTRIPS Agreement?
Reply 319.
Yes,theydo.
Question 320.
Does Ukraine protect geographical indications? Under which precise legislative act? Is
thelegislation inaccordance withArticles 22to24oftheTRIPS Agreement?
Reply 320.
Yesitdoesincompliance withtheLawofUkraine "OnCopyright andRelated Rights"
conforming toArticles 22to24oftheTRIPS Agreement.
Question 321.
Isthere anyprotection oflayout-designs (topographies) ofintegrated circuits? Ifso,are
there anyregistration requirements? Which isthebody responsible forthese matters? Which
isthelegislative actruling thelegal protection oftopographies ofintegrated circuits?
Reply 321.
SeeReply 111.WT/L/20
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Question 322.
IstheState Patent Committee ofUkraine responsible notonlyforindustrial property but
alsoforcopyrights andrelated rights? Ifthisisnotthecase, which isthebody responsible for
these rights?
Reply 322.
TheState Committee forCopyright andRelated Rights does.
Question 323.
Istheprotection ofcopyrights andrelated rights inUkraine fullyinlinewiththeArticle 9
to14oftheTRIPS Agreement?
Reply 323.
SeeReplies 90,91,110,111,112.
Question 324.
DoesUkraine copyright legislation provide forrental andlending rights? Whomayenjoy
these rights andtowhat extent?
Reply 324.
SeeReply 96.
Question 325.
Arecomputer programmes protected asliterary works? How aredatabases protected
andtowhat extent?
Reply 325.
Thecomputer programmes arenotprotected asliterary works, noraredatabases.
Question 326.
Arethere anylegislative provisions inUkraine fortheprotection oftrade secrets and
undisclosed information, notably inviewofArticle 39oftheTRIPS Agreement?
Reply 326.
SeeReplies 86through 90.Reply 113.
Question 327.
ArethereanylegislativeprovisionsinUkraineontheprotectionagainstunfaircompetition?WT/L/20
Page138
Reply 327.
Incompliance withtheLaws ofUkraine, unfair competition inforeign economic activities
isunderstood tobe:
Dumping;
illegal application orproduction offalsetrade marks orindustrial designs;
circulation offalseinformation astothegoods;
comparison withanygoods ofcompeting producers inadvertising.
Thedisclosure ofdumping istobemade exclusively judicially onsuitoftheMinistry ofForeign
Economic Relations orenterprises theinterests ofwhich were encroached upon.
Inalltheother cases penalty sanctions canbeapplied incompliance withArticle 38ofthe
Law"OnForeign Economic Activities" (fines, anti-dumping procedures, individual licensing treatment
oftheforeign economic activities, temporary termination offoreign economic activities).
Question 328.
Under III.Imports Regulation, General Description oftheCustoms Tariff Structure,
theMemo states i.e.that"seasonal customs taxes maybeestablished fortheperiod notexceeding
fourmonths". Could theUkrainian delegation please explain insome detail what products are
involved, andunder what circumstances these customs taxes arelevied?
Reply 328.
SeeReply 12,133.
Question 329.
Under thesame heading isalsostated thatspecial duties maybelevied "asthemeans to
combat regular hostile actions directed against general interests ofUkraine, orintheevent of
attempts toinitiate unfair competition". Could theUkraine delegation please elaborate onthis.
What ismeant by"regular hostile actions"?
Reply 329.
SeeReply 12.
Question 330.
Wewould appreciate receiving alistofproducts thataresubject toexcise duty. Certain
products areexempt from VAT inorder toprotect manufacturers. Isthisnotadiscriminatory
practice?
Reply 330.
SeeReply 28,30,137.WT/L/20
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Question 331.
Equally, wewould appreciate receiving listsindicating which products aresubject to
non-tariff measures (licences, import/export prohibition etc.).
Reply 331.
SeeReply 48,50,288.
Question 332.
Concerning rules oforigin wewould liketoknow whether theUkraine intends toadjust
itsregulations tointernational standards.
Reply 332.
SeeReply 42.
Question 333.
How doUkraine 'sSPSregulations comply withinternational regulations?
Reply 333.
SeeReply 48.
Question 334.
From theexplanations under III.Export Regulations, oneisgiven tounderstand that
allexports ofrawmaterials aresubject toquota andlicensing procedures. When doestheUkraine
Government consider thatthese regulations canbeabolished?
Reply 334.
Incompliance withtheprogramme ofreforms these quotas andlicences canbeabolished to
theendof1995, when privatization ofindustry willbecompleted andinternal prices reach theworld
level.
Tillthisperiod, inconformity toArticle XX(i) ofGATT, theGovernment reserves theright
ofapplying restrictions onexport ofrawmaterials.
Question 335.
TheUkraine hasasystem ofexport quotas including licences. Only certain companies
areallowed toexport. Thecountry alsohasaunique wayofhandling fiscal transactions related
toexport (through agovernment account system). Isthisincompliance withGATT?
Reply 335.
SeeReply 36.WT/L/20
Page140
Topromote export andopenUkraine market forforeign trade, theGovernment implemented
drastic measures inforeign trade.
Incompliance withtheprogramme ofreforms, starting from 1November 1994, allexport
quotas andlicences wereeliminated except forquotas forwastes offerrous andnon-ferrous metals,
pigiron, coals, grains andthegoods subject tovoluntary export restrictions.
AlsoseeReply 129.
Question 336.
Resolution ofdisputes withthegovernment orgovernmental representatives:
Incaseofaconflict between aforeign exporter andUkraine government institutions as
totheinterpretation ofcurrent rules andregulations; or
inthecaseofbureaucratic mistakes etc.,what arethelegalprocedures under which such
disputes mayberesolved?
Reply 336.
Protection oftherights andinterests offoreign exporters isguaranteed bytheprovisions of
theCivil Code, Administrative Code, thelaw"OnForeign Economic Activities" andother legislative
acts.Protection oftherights violated iseffected incompliance withtheArbitration Legal Procedure
Code ofUkraine incourts andarbitration courts.
Incompliance withCode above, therightofappeal tothearbitration court isgranted toall
organizations irrespective oftheform ofownership andState theybelong.
Also, seeReplies 17,70.
Question 337.
Along thesame lines, what aretheprocedures forresolving adispute involving aforeign
investor whoforsome reason finds himself inconflict with astate-owned enterprise ora
governmental regulatory body?
Reply 337.
SeeReplies 17,70.
Question 338.
With regard toIV.7, please explain whether publicly-owned enterprises areobliged to
publish annual orsemi-annual accounts, andwhether suchaccounts areestablished inamanner
which allows foraccurate estimates ofproduction oroperating costs?WT/L/20
Page141
Reply 338.
Incompliance withtheLaws ofUkraine, publicly-owned enterprises arenotobliged topublish
annual orsemi-annual accounts asregards accurate estimation ofproduction oroperating costs.
Question 339.
Averylarge number ofstores, kiosks andcatering facilities arecontrolled bytheState.
Does theGovernment encourage private ownership andoperations inthisareaand,ifthatisthe
case, withwhat incentives?
Reply 339.
SeeReply 76.
Question 340.
Wewould liketopoint outthatinthetextconcerning state-owned trade enterprises there
isnoindication ofanyambition tocomply withArticle XVII oftheGATT. Anelaboration on
thiswould beappreciated.
Reply 340.
Incompliancewiththeprogrammeofreformsandintheprocessofprivatization,thestate-owned
enterprises willbebrought intocompliance toArticle XVII ofGATT.
Question 341.
ReIV.9., itisnotclear from thechapter onTRIPS whether Ukraine isasignatory to
theRome orBern Conventions. Ifthisisnotthecase, does theUkraine plan tosignthese
conventions?
Reply 341.
Yes,itdoes.
Question 342.
What arethebasis forintroduction ofseasonal customs taxes?
Inwhich forms arethese taxes applied?
Reply 342.
SeeReplies 12,133.
Question 343.
Request forelaboration ofthesystem ofspecial duties. Poland would welcome clarifications
ofthemeaning andinterpretation ofthefollowing terms: (a)"intheevent ofprotectiveWT/L/20
Page142
reservations" andconditions which "caninflict substantial damage toproducers ofsimilar goods";
(b)"asthemeans tocombat regular hostile actions"; (c)"attempts toinitiate theunfair
competition"; (d)"counteractions against powers, economic groups ..."which hinder theforeign
economic activity ofUkrainian enterprises"; i.e."application orspecial tariffs shall besubject
toprovisions ofspecial laws".
Reply 343.
SeeReplies 12,133.
Question 344.
Request forelaboration ofthesystem ofanti-dumping duties. Poland would welcome
information onthemeaning andinterpretation ofthe"general saleprice ofdumping goods".
Reply 344.
SeeReply 17.
Question 345.
Request forelaboration ofthesystem ofcountervailing duties. Poland would welcome
clarifications onwhich basis Ukrainian authorities consider that"production orexports ofthese
goods wassubsidized directly orindirectly" andthemeaning ofthewording "prevents from the
development ofproduction ofsuchgoods inUkraine".
Reply 345.
SeeReply 17.
Question 346.
Which countries have "special customs zones withUkraine"?
What aretheprovisions ofthese zones?
Reply 346.
SeeReplies 117,118,119.
Question 347.
Poland would liketoknow onwhat basis itwascalculated thatthe"weighted average
dutyrates amount to11.9percentofthecustoms value"?
Reply 347.
SeeReply 166.WT/L/20
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Question 348.
Isthevalue added-tax levied onimported goods (28percent) andan"excise duty" also
applied todomestic goods?
Reply 348.
SeeReplies 28and30.
Question 349.
Request forelaboration orthesentence that"thevalue ofintellectual property employed
during thegoods manufacturing process, andwhich animporter must paydirectly orindirectly
asamandatory precondition forimports orexports shallbeincluded inthecalculation ofcustoms
value?
Reply 349.
Incompliance withtheUnified Customs Tariff ofUkraine, thevalue ofintellectual property
isusedasstated inthequestion andisincluded inthecalculation ofcustoms duty.
Question 350.
Poland requests thelistofproducts subject toimport quotas?
Reply 350.
SeeReply 38.
Question 351.
What isthebasis andprecise modalities ofexport subsidies?
Reply 351.
There arenoexport subsidies inUkraine.
Also, seeReplies 1,49,50,51.
Question 352.
Request forelaboration ofthesystem ofallocation offoreign currency toimporters (p.26).
Poland would liketohaveclarification especially ofthemeaning andinterpretation ofthefollowing
terms:
(a) "residents havetheright topurchase freely convertible currency forthenational
currency ofUkraine, viaTender andattheactual rateofsuchaTender";
(b) "Non-residents mayextend credits andloans inhardcurrency subject totherules
oftheNational Bank ofUkraine andupon procurement oflicense from same".WT/L/20
Page144
Reply 352.
SeeReply 34.
Note: Replies ontheQuestions marked withasterisks willbesubmitted inaddition shortly.
FOREIGN TRADE INUKRAINE INJANUARY-SEPTEMBER 1994
AcrisisphenomenonwascontinuingintheUkrainianeconomy,withrealdeclinesinproduction.
Fortheperiod January toSeptember 1994 compared tothesame period in1993, GDP declined by
18percent, national income -by19.8percent.
Thedevelopment offoreign tradewasachieved under verydifficult conditions. Fortheperiod
January toSeptember 1994 thetotalvolume ofUkrainian foreign trade ingoods andservices was
US$16.7 billion, including export -US$8.5 billion, import -US$8.2 billion, resulting inapositive
balance intheamount ofUS$0.3 billion.
Foreign trade ingoods
Themain partoftheforeign trade turnover (93percent) results from trade ingoods. Itis
necessary tounderline thatinthelastfewyears theexport ofgoods fellbehind imports, andbecause
ofitwehavehadanegative tradebalance, which makes thefinancial stateofthecountry more difficult.
Theabove-mentioned tendency continued in1994. FortheJanuary-September period Ukraine 's
export ofgoods wasUS$7.6 billion, import ofgoods -US$8 billion. Anegative balance wasprimarily
aresult ofthestateoftrade ofCISandBaltic States, which make uptwothirds ofthetotalturnover
intrade ofgoods. Beginning in1992exports toCISandBaltic States fellbehind imports by6.6per
centin,1993 -by29.6percent, forthenine-month period of1994 -by15.6percent.
Thesituation wasintensified bythedelivery ofoilandgasintoUkraine from theRussian
Federation andTurkmenistan, prices which increased year-by-year. These twocountries contribute
about 90percentofimport ofgoods from CISandBaltic States and58.8percentoftotalimports
intoUkraine. In1992energy complex imports compared tototalimports ofgoods fromCISandBaltic
States accounted to42.3 percent, in1993 -98.6 percent, forthenine-month period of
1994 -66.1percent.
Ukrainian exports totheCISandBaltic States consist primarily ofproducts offerrous and
non-ferrous metallurgy, machine-building andmetal processing industry andthefoodindustry, but
theirtotalvalue fellsignificantly behind thevalue ofenergy complex imported products. During the
periodofJanuary-September1994thevalueofenergycompleximportedproductsexceededthecombined
value offerrous andnon-ferrous metallurgy, machine building andmetal processing industry, andthe
foodindustry 'sexported products byUS$1.9 billion.
Thereduction ofphysical volumes oftraditional types ofexported products delivered toCIS
andBalticStatestookplacethroughoutthisperiod.Though,forthenine-monthperiodof1994compared
toehsame period of1993 export offerrous metals decreased on2,225.6 thousand tonsor61.9per
cent, metal tubes -by773.9 thousand tons(61.6 percent), processed pigiron-by275.5 thousand
tons(65percent), trucks -on2.8thousand pieces (32.9 percent), etc.WT/L/20
Page145
Theresult ofthese changes isthattheamount ofUkraine 'snegative balance withtheCISand
Baltic States isnowUS$1.6 billion.
Ukraine 'sforeign trade ingoods withother countries covers 33.7percentofthetotalforeign
trade turnover. Fortheperiod January-September 1994 Ukraine 'strade withthese countries hada
positive balance intheamount ofUS$1.1 billion, which covered 70percentofthenegative balance
intrade withtheCISandBaltic States.
There isapositive trend ofvolumes increasing intheexport ofgoods tothese other countries.
In1992 exports tothese countries exceeded imports by26percent,in1993-by19percent,andfor
thenine-month period of1994 by22percent.
There aresome changes inthegeographical structure oftradeingoods withnon-CIS andBaltic
countries. While in1992 themain export partners ofgoods from Ukraine wereEuropean countries
which accounted formore than70percentoftotalexports, forthenine-month period of1994 they
covered only53.2percent. Exports tothecountries ofAsiacorrespondingly rosefrom 19percent
to35.3percent. Themain partners inexport ofgoods forthenine-month period of1994 -China
(US$415.3 million), Switzerland (US$225.6 million), United States (US$204.7 million).
Among theimporters ofgoods intoUkraine Europe continues tobethemain supplier with
84.9percentofimports, imports from thecountries ofAsiareduced form 14.3percentin1991 to
5.6percentforthenine-month period in1994 andimports increased from 3.1percentto7.3per
cent-from thecountries ofAmerica. Thelargest volumes ofimported goods came from Germany
(US$897 million), Poland (US$134.6 million), United States (US$114.1 million).
During thelastfewyears thestructure offoreign trade haschanged innegative ways. There
wasasubstantial reduction ofenergy complex exports, ifin1991 specific gravity ofthese products
was10.5percent, inthenine-month period of1994, only4percent, machine-building products,
correspondingly, 28.7percentand8percent. Butthere havebeensubstantial increases onthepart
offerrous andnon-ferrous metallurgy products from 39.2percentto62.3percent, chemical and
petroleum industry -from 8.3percentto14.4percent. Only fortheperiod ofJanuary-September
of1994compared withthesameperiod of1993export ofirontoforeign countries increased by9,905.9
thousand tonsortwotimes higher, fertilizers -by11,560.9 thousand tons(twotimes higher), ferrous
metals -by1,607.2 thousand tons(36.9 percent). Though, inUkraine 'sexports rawmaterials take
amajor place.
Andvisaversa there isandincrease intheimports intheenergy complex from 0.6percent
in1991 to8.3percent-forthenine-month period of1994, machine-building andmetal processing
industry, correspondingly, from 55.4percentto61.3percent.
Theanalysis offoreign trade ingoods bymethod ofpayment shows thatonly35.9percent
ofgoods exported from Ukraine were soldforfreely-convertible currency, andtheportion soldby
barter exchange hasincreased. Forthenine-month period of1994specific gravity ofbarter operations
inexport deliveries was40.8percentversus 22percentforthesame period of1993, twothirds of
barter saleswerebetween Ukraine andCISandBaltic States. Theincrease inbarter operations testifies
further tothedecrease inexport effectiveness. Itisaresult ofpoortaxation policy, currency-financial
policy, andaggravation ofpayment andsellcrisis.WT/L/20
Page146
Foreign trade inservices
Forthenine-month period of1994foreign trade turnover inservices asUS$1,139.8 million;
taking intoaccount exports -US$937.5 million, imports -US$202.3 million, apositive balance of
US$735.2 million wasreceived. Inthetotalturnover offoreign trade ingoods andservices, services
volume covers only6.8percent. Butthepositive balance oftrade inservices covered thenegative
balance fortradeingoods, andasaresult ofthebalance intradeofgoods andservices became positive
atUS$271.2 million.
Ukraine mainly conducts trade inservices withnon-CIS andBaltic countries (74.6 percent)
andonlyaquarter ofitsturnover covers CISandBaltic States. Main trade partners among non-CIS
andBaltic countries are-India, Germany, Romania, United States, among CISandBaltic States -
Russian Federation, Belorus, Uzbekistan, Moldova.
Itisnecessary tounderline, thatUkraine doesnotemploy thepotential ofthistypeoftrade
wellenough. Transportation services account forthemajor portion ofexport/import ofservice (74.2
percentofexports, 50percentofimports), including ocean transport (50.5 percentofexports, 41.6
percentofimports). Export ofactive informal services (patents, licences, know-how) covers only
0.1percentwhen Ukraine hassufficient science andintellectual potential (Ukraine contributes one-fifth
ofscientific researches among CISandBaltic States).WT/L/20
Page147
STATISTICAL DATA
(a) Main economic indices
1. Gross Domestic Product (billions ofukr.karb.).
Table No.1
(thousand ukr.karb.)
1992 1993 9-months of
1994
G.D.P. (inactual prices) 5,033 141,477 573,017
perperson 96.5 2,711.4 11,027.7
Rates ofexchange
average 208.36 4,883.86 45,000.00
attheendof1992, 1993,
9-months of1994
(Ukr. karb. toUS$)647.00
(by20.11.1992)12,610.00
(by25.12 1993)104,000.00
(by25.12 1994)
2. Gross National Product andNational Income incomparison withlasttwoyears (inbillion
ofukr.karb. andpercent)
Table No.2
1992 1993 9-months of
1994
Gross National Product (inactual
prices)9434 317,155 1,157,090
in%totheprevious year 89.8 92.1 75.3*
perperson (thousand ukr.karb.) 180.9 6,078.2 22,268.1
in%totheprevious year 89.5 92.1 *
National Income (inactual prices) 3,887 118,237 536,452
in%totheprevious year 82.5 81.2 78.1*)
perperson (thousand ukr.karb.) 74.5 2,266 10,324
in%totheprevious year 82.2 81.1 *
*In%tothenine-months period of1993WT/L/20
Page148
3. Rates ofincreasing (decreasing) oftheagricultural andindustrial production incomparison
withlasttwoyears (inpercent).
Table No.3
1992 1993 9months
1994
Agricultural production 91.7 101.5 83.4
Industrial production 93.6 92.0 72.3
(b) Foreign trade statistics
1. Trade relations withCISandBaltic States inJanuary-September 1994 (inactual prices, US$
million).
Table No.4
Volume Share %
Foreign trade turnover withCISand
Baltic States 10,638.8 63.6%
Export 4,606.0 54.1%
Import 6,032.8 73.3%
Balance -1,426.8
2. Geographical structure ofexport/import withCISandBaltic States in1993 (inactual prices,
billion ukr.krb.).
Table No.5
States Export Import Balance
Total volume 22,965.1 34,683.4 -11,718.3
Azerbaijan 904.7 272.2 +632.5
Belarus 1,708.0 1,407.5 +300.5
Armenia 45.0 25.9 +19.1
Georgia 69.5 63.1 +6.4
Kazakjstan 557.9 399.7 +158.2
Kyrghyzstan 42.3 41.5 +0.8
Latvia 163.7 153.3 +10.4
Lithuania 304.4 816.7 -512.7
Moldova 1,369.1 160.6 +208.5
Russian Federation 17,312.4 24,414.4 -7,102.0
Tadjikistan 27.9 20.7 +7.2
Turkmenistan 950.9 6,539.7 -5,588.8
Uzbekistan 453.9 260.6 +193.3
Estonia 55.8 107.5 -51.7WT/L/20
Page149
3. Geographical structure ofexport/import with CIS and Baltic States in1992 -
January-September 1994 (inpercent).
Table No.6
States 1992 1993 9-months 1994
Export Import Export Import Export Import
Total volume 100.0 100.0 100.0 100.0 100.0 100.0
Azerbaijan 2.7 0.8 3.9 0.8 1.6 0.6
Belarus 9.1 7.6 7.4 4.0 9.9 4.1
Armenia 0.4 0.4 2.4 1.2 0.1 0.02
Georgia 1.1 0.5 0.3 0.2 0.2 0.03
Kazakhstan 4.7 3.0 2.4 1.2 2.2 2.7
Kyrghyzstan 0.5 0.6 0.2 0.1 0.1 0.1
Latvia 1.0 0.6 0.7 0.4 1.9 0.8
Lithuania 1.6 1.2 1.3 2.3 3.7 0.8
Moldova 2.3 1.6 1.6 0.5 9.8 2.0
Russian
Federation 72.1 77.5 75.4 70.4 68.2 78.0
Tadjikistan 0.5 0.2 0.1 0.1 0.1 0.1
Turkmenistan 0.7 4.5 4.2 18.8 0.7 10.0
Uzbekistan 3.0 1.3 2.0 0.8 1.2 0.7
Estonia 0.3 0.2 0.3 0.3 0.3 0.1WT/L/20
Page150
4. Export/import structure with CISandBaltic States, bysectors, in1992 -January-
September 1994 (inpercent).*
Table No.7
BranchExport Import
1992 1993 Jan.-Sept.
19941992 1993 Jan.-Sept.
1994
Total volume including: 100.0 100.0 100.0 100.0 100.0 100.0
Energy complex 2.9 0.9 1.5 42.3 68.6 66.1
Ferrous andnon-
ferrous metallurgy 33.5 26.0 25.9 9.6 5.5 4.5
Machine building and
metal processing25.0 29.5 35.8 13.6 10.3 12.4
Chemical andoil-
chemical industry 7.7 7.6 8.9 8.3 6.0 7.6
Light industry 6.6 8.6 4.8 8.2 1.9 2.5
Agro-industrial
complex7.8 22.6 12.1 2.4 1.1 1.2
Others 17.0 4.8 11.0 15.6 6.6 5.7
*Excluding services
5. Foreign tradeturnover withCISandBaltic States inJanuary-September 1994(incontract prices,
US$million).
Table No.8
Total volume* Goods Services
Foreign trade turnover 16,741.0 15,601.2 1,139.8
Export 8,506.1 7,568.6 937.5
Import 8,234.9 8,032.6 202.3
Balance +271.2 -464.0 +735.2
*Including export/import operations ofjointventuresWT/L/20
Page151
6. Export/import geographical picture anditsstructure inJanuary-September 1994.
Table No.9
Foreign trade vol. Export Import
US$million Share % US$million Share % US$million Share %
Total vol.
including: 15,601.2 100.0 7,568.6 100.0 8,032.6 100.0
CISandBaltic
States 10,347.1 66.3 4,368.2 57.7 5,978.9 74.4
Other States of
theworld 5,254.1 33.7 3,200.4 42.3 2,053.7 25.6
Europe 3,446.2 22.1 1,703.6 22.5 1,742.6 21.7
Asia 1,242.4 8.0 1,228.3 14.9 114.1 1.4
America 406.7 2.6 256.2 3.4 150.5 1.9
Africa 141.0 0.9 27.4 1.3 43.6 0.5
Australia 17.8 0.1 14.9 0.2 2.9 0.1WT/L/20
Page152
7. Main partners ofUkraine from foreign states inforeign trade inJanuary-September 1994
(excluding CISandBaltic States).
Table No.10
Export Import
US$million Share % US$million Share %
Countries Countries
Europe 1,703.6 100.0 Europe 1,742.6 100.0
Switzerland 225.6 13.2 Germany 897.0 51.5
Italy 187.9 11.0 Poland 134.6 7.7
Hungary 170.9 10.0 Czech Rep. 99.0 5.7
Germany 168.4 9.9 Switzerland 76.1 4.4
Austria 136.4 8.0 Italy 61.4 3.5
Asia 1,128.3 100.0 Asia 114.1 100.0
China 415.3 36.8 Japan 20.4 17.9
Turkey 99.9 8.9 India 19.9 17.9
Thailand 85.9 7.6 China 17.3 15.1
Chinese Taipei 82.5 7.3 Cyprus 12.1 10.6
Africa 97.4 100.0 Africa 43.6 100.0
Egypt 49.4 50.7 Liberia 19.9 45.6
Liberia 16.6 17.0 Guinea 15.5 35.6
Tunisia 13.3 13.7 Egypt 7.5 17.2
America 256.0 100.0 America 150.5 100.0
United States 204.7 80.0 United States 114.1 75.8
Canada 21.6 8.4 England (Britain) 15.7 10.4
Canada 11.2 7.5
Australia 14.9 100.0 Australia 2.9 100.0
NewZealand 9.8 65.8
Australia 4.5 30.2 Australia 2.8 98.7WT/L/20
Page153
8. Export/import structure withforeign States, bysectors, in1992 -January-September 1994
(inpercent) (excluding CISandBaltic States) .
Table No.11
BranchesExport Import
1992 1993 Jan.-Sept.
19941992 1993 Jan.-Sept.
1994
Total volume 100.0 100.0 100.0 100.0 100.0 100.0
Energy complex 15.7 5.4 4.1 3.7 6.3 8.3
Ferrous andnon-ferrous
metallurgy 35.3 65.4 62.3 4.2 16.3 3.6
Machine building and
metal processing 12.7 13.3 8.0 45.5 38.9 61.3
Chemical andoil-chemical
industry 27.4 8.4 14.4 7.7 6.8 8.3
Light industry 2.4 2.0 3.9 20.5 5.4 6.5
Agro-industrial complex 3.8 3.4 4.8 9.9 18.7 7.8
Others 2.5 2.1 2.5 8.5 7.6 4.2