RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/RUS/31
10 December 1998
(98-4988)
Working Party on the Accession
of the Russian FederationOriginal:  English
ACCESSION OF THE RUSSIAN FEDERATION
Information Regarding the Development of
Foreign Trade Legislation of the Russian Federation
The Permanent Mission of the Russian Federation has submitted the following information
regarding the development of foreign trade legislation of the Russian Federation since the last meeting
of the Working Party held on 29-30 July 1998.
Development of Foreign Trade Legislation in the Russian Federation
In accordance with the WTO practice with respect to acceding countries, the Russian
delegation informs the Working Party on a regular basis of the development of the Russian Federation
economy and of any changes in the foreign trade regulations.  See the documents L/7410,WT/ACC/RUS/2, WT/ACC/ RUS/9, WT/ACC/RUS/16, WT/ACC/RUS/27, etc.
Given below is a brief review of the key foreign trade laws and regulations adopted in the
Russian Federation between 1 July 1998 and 15 November 1998.  All the documents mentioned
herein have been presented in the list of Russian foreign trade legislation prepared for this meeting of
the Working Party.
1. General Provisions
The Federal Law No. 102-FZ “On Mortgage (Pledge of Real Estate)” dated 16 July 1998 laid
down the basis for a real estate market in Russia.
Another step of fundamental importance was puttin g into effect the first (general) part of the
Tax Code (Federal Law No. 147-FZ of 31 July 1998).
On 22 September 1998, Presidential Decree No. 1142 approved a new structure of the
Russian Government.  In particular, the Russian State Committee for Standards and Metrologyretained its former functions and independence pursuant to this Decree.
Governmental Resolution No. 1221 of 20 October 1998 approved the basic scope of matters
falling within the authority of the Ministry of Trade of the Russian Federation.  In fact, all those
functions and tasks which had previously been the authority of the Ministry of Foreign EconomicRelations of the Russian Federation, including the WTO-related matters, were assigned to the
Ministry of Trade of the Russian Federation.
In accordance with Governmental Resolutions No. 1171, dated 7 October 1998 and 1261
dated 23 October 1998 the Governmental Commission fo r Protective Measures in Foreign Trade and
Customs Tariff Policy and the Commission of the Government of the Russian Federation on the WTO
matters were headed by Yu. Maslyukov, first deputy Prime-Minister of the Russian Federation.WT/ACC/RUS/31
Page 2
2. Market Access
(a) Tariff measures
27 July 1998 was the effective date of Federal Law No. 118-FZ which made certain
amendments to the 1997 Federal Law “On Excise Taxes”.  These amendments reduce excise taxes on
low-alcohol carbonated beverages and introduce a clear differentiation between the taxation of
artificial and natural alcoholic beverages in favour of the latter.
In order to safeguard the country’s balance of payments, the Government of the Russian
Federation imposed by its Resolution No. 791 of 17 July 1998 a 3 per cent import surcharge on all
goods, with effect from 15 August 1998.
This measure is of a forced and temporary nature (it will expire on 31 December 1999) and
complies with the provisions of GATT Article XII.
Taking into account, however, that the sharp de cline in the rouble-to-dollar exchange rate in
August and September 1998 and the crisis events in the Russian banking system significantly
impeded foreign trade operations, the Government revised the application of this surcharge.
Pursuant to Governmental Resolutions No. 1030 of 5 September 1998 and No. 1203 of
15 October 1998, the 3 per cent import surcharge does not apply to basic foodstuffs, medicines andother essential goods of social significance.
Governmental Resolution No. 1235 of 23 October 1998 established a preferential procedure
for the payment of customs charges (i.e. duties and excise taxes) on imported technological
equipment.  Now customs charges on technological equipment imported into Russia may be deferred,without any penalties or fines, for a period up to 2 years against the pledge of such equipment or
guarantees of the authorities of a subject of the Russian Federation.
The list of goods subject to combined import duty rates under the Russian customs tariff has
also been revised (in terms of reducing) - Gove rnmental Resolutions No. 945 of 13 August 1998 and
No. 1045 of 5 September 1998.  The procedure of collecting such duties has been adjusted by virtue
of the Resolution of the Government No. 986 of 21 August 1998.
Finally, on 21 October 1998 Governmental Reso lution No. 1226 reduced the rates of import
customs duties with respect to 92 items of the Russian customs tariff (meat and meat products, butter,
vegetable oil etc.).
(b) Non-tariff measures
By virtue of Federal Law No. 86-FZ “On Medicines” dated 25 September 1998 the foreign
trade activity involving export and import of medicines is subject to licensing as a type of activity.
Such licences, as well as licences for specific export/import transactions in medicines, will be issuedby the Ministry of Trade of the Russian Federation.
The introduction of such licensing system is due to protect human life and health and is
consistent with the provisions of GATT Article XX.
For the purpose of commodity movement monitoring, Governmental Resolution No. 782 of
17 July 1998 imposed automatic (without any quantitative or other restrictions) licensing of raw
sugar, white sugar and treacle imports into the Russian Federation.WT/ACC/RUS/31
Page 3
On 17 August 1998, in accordance with the resolutions of the 10th International Conference
on the Protection of Rare and Endangered Species of Animals and Plants, the Government imposed
by its Resolution No. 968 non-automatic permissive licensing of sturgeon species exports and
imports.  Such licences should be issued by authorized representatives of the Ministry of Trade of the
Russian Federation in Russian regions upon obtaining of a positive inference from the Ministry ofAgriculture and Food or the State Committee for Environmental Protection.
Governmental Resolutions No. 868, dated 31 July 1998, and No. 908, dated 7 August 1998,
significantly simplified and ultimately formalized the procedure of import and use in Russian territory
of a number of high-frequency radioelectronic devices – GSM cellular telephone handsets and
satellite telephone communications systems.  These decisions mean a decisive acceleration of
Russia’s integration into the global telecommunications network.
Governmental Resolutions No. 1267 and No. 1268 dated 31 October 1998, introduced an
automatic licensing (without any quantitative restrictions) of the exportation of oilseeds (sunflower,
soy and rape seeds) and raw hides and skins from Russia.
(c) Trade remedies measures
The Russian Government imposed by its Resolution No. 783 dated 17 July 1998 temporary
special duties on raw sugar and white sugar imports into Russia.  These duties were imposed in
accordance with Article 6 of the Federal Law “On Measures to Protect the Economic Interests of theRussian Federation in Foreign Trade in Goods” (discu ssed at the last meeting of the Working Party)
based on the preliminary findings of an investigation conducted by the Ministry of Trade.
The purpose of such protective measures was to prevent an unavoidable threat of substantial
damage to the Russian sugar industry due to a sharp increase in raw and white sugar imports intoRussia.  Such measures for a period not exceeding 200 days are allowed under Article 6 of the WTO
Agreement on Safeguards.
The concurrent investigation was completed in early December 1998 and showed, in
particular, that the temporary safeguards with respect to sugar could be revoked as from January 1999.
3. State Trading Enterprises (STE)
No changes have occurred in this area of foreig n trade legislation in Russia compared to the
preceding period.
4. Technical Barriers to Trade (TBT)
Federal Law No. 153-FZ dated 31 July 1998 made reasonable amendments and modifications
to Article 11.1 of the Russian Federation Law “On the State Border” which had caused concern of
many WTO Members.  According to the amendments made to that Article, the border fee upon the
crossing of the Russian border is only payabl e by individuals and vehicle owners.  Goods are
absolutely exempt from this fee and its very introduction is postponed to 1999-2000.  The rate of the
fee is less than US$10 for individuals and several tens of dollars for vehicle owners (depending on the
vehicle type).
Federal Law No. 154-FZ, dated 31 July 1998, made important amendments and additions to
the Russian Federation Law “On Certification of Products and Services”.  They, in particular, provide
for a significant expansion of opportunities for the use of the manufacturer/seller/contractor’s
declaration, i.e. self-declaration, to certify confor mity.  Such a form as voluntary declaration ofWT/ACC/RUS/31
Page 4
conformity is also provided for. In addition, an y organizations, irrespective of their ownership and
corporate form, are now admitted to certification activities as third parties.
Therefore, Russia has made an important step in harmonizing its national legislation with the
WTO rules and regulations.
Governmental Resolution No. 638 of 24 June 1998 determined that charges for the transit in
Russian territory of motor vehicles registered in foreign States should only be payable if such foreign
States impose such charges on Russian motor vehicles.
Order No. 63 of the Russian State Committee for Standards, dated 6 October 1998, reduced
(as concerns pipeline fittings) the scope of products subject to mandatory certification.
Finally, on 20 October 1998 Governmental Reso lution No. 1223 made further amendments to
Governmental Resolution No. 601, “On Marking of Goods and Products in the Russian Federation
with Marks of Conformity”, dated 17 May 1998.
Resolution No. 601 is known to have been actively discussed at the sixth and seventh
meetings of the Working Party and was already considerably revised in September 1997 with a view
to meeting the suggestions of WTO Member countries.   According to the latest changes made to it in
October 1998, the effective date of Resolution No. 601 was postponed again to 1 April 1999 and
opportunities to use marks of conformity applied during the manufacture of the product itself werenoticeably expanded.
Therefore, the Russian Federation consistently follows the course of removing technical
barriers to trade.
5. Sanitary and Phytosanitary Measures (SPS)
Governmental Resolution No. 680 of 30 June 1998 approved the Regulations of the State
Sanitary and Epidemiological Service of the Russian Federation, operating within the Ministry of
Health.  The Regulations determine the structure, status, rights and responsibilities of this service and
supersede the regulations issued in 1994.
Order No. 217 of the Ministry of Health, dated 20 July 1998, approved the Regulations on
Hygienic Evaluation of Products, Goods and Op erations.  The document establishes general
requirements for the manner of performing hygienic evaluation (including sanitary and
epidemiological research and examinations) and issu ing a hygienic conclusion and including the latter
in the relevant register.  These Regulations supersede the Gossanepidnadzor’s regulations dated5 January 1993.
Governmental Resolution No. 1143, dated 1 October 1998, made amendments and additions
to the Regulations of the State Plant Quarantine Service providing for higher transparency and
openness of its operations.
6. TRIPS
See WT/ACC/RUS/29.WT/ACC/RUS/31
Page 5
7. Investment Measures (TRIMS)
During the period after the last meeting of the Working Party, the Federal Assembly of the
Russian Federation has made no amendments to the legislation determining the treatment of foreign
investments in Russia, nor it has passed any new laws in this area.
However, the Russian party believes it to be useful to point out the key elements of
Governmental Resolution No. 716, dated 7 July 1998, “On Additional Measures of State Support for
Russian Civil Aviation”.  The substance of the decision is that the privileges, as provided in the
Russian Customs Code (Chapter 72), in the form of a deferral of customs charges (VAT and customs
duties) for the importation of leased foreign-made aircraft may only be granted to those organizations
which guarantee that they will purchase or lease Ru ssian aircraft with a value exceeding that of the
customs privileges they are granted by up to three times.  The provisions of the said Governmental
Resolution were subsequently implemented with respect to OJSC “Aeroflot” by deferring its customs
charges upon the importation of foreign-made aircraft.
Governmental Resolution No. 716 determined clear criteria for the granting of customs
privileges, thus narrowing the opportunities for their obtaining.  In addition, the adoption of this
regulatory act was caused by the most urgent need to support the Russian aircraft industry.  While
understanding the importance of complying with the WTO regulations in this area, the Russian party
assumes that the effective period of Governmental Resolution No. 716 will be limited.
In addition, a Governmental decision has been prepared in order to reduce the customs duties
on civil aircraft that will clearly eliminate the need for the customs privileges described above.
8. Government Procurement
During the period under review, the development of the regulatory framework for these issues
has continued in the Russian Federation.  For instance, on 3 September 1998 the Government adopted
its Resolution No. 1022 which determined a system of measures to provide personnel for
auctions/tenders for the purchase of products for government needs.
9. Services
On 24 July 1998, Federal Law No. 127-FZ “On State Control of International Road Carriage”
was adopted, whereby transportation among locations within the Russian Federation was prohibited
for foreign motor carriers.
3 August 1998 was the effective date of the Federal Law No. 135-FZ “On Appraising
Activities in the Russian Federation”.  It establishes identical requirements for the performance of
such activities by both Russian and foreign persons.
28 September 1998 was the effective date of Federal Law No. 158-FZ “On Licensing of
Certain Activities” that superseded the numerous Governmental decisions and ministerial regulationswhich had governed this field until then.  Now the list of licensable activities may only be amended
by a federal law.  The said Law contains no special restrictions on the obtaining of licences by foreign
legal entities or individuals.
A special role is intended for Governmental Resolution No. 1139 of 1 October 1998 which
approved the guidelines for the development of the national insurance system in the Russian
Federation during 1998-2000.  This programme provides for:
- an active structural policy in the Russian market for insurance services;WT/ACC/RUS/31
Page 6
- development of the relationship between the Russian and international insurance markets; and
- improvement of the regulatory framework for insurance operations, taking into account the
WTO rules and regulations and the international obligations of the Russian Federation.
All of this can result in liberalized conditions for the access of foreign insurers to the Russian
market.
On 1 October 1998, the Government adopted its Resolution No. 1142 in pursuance of the
Federal Law “On the Procedure of Entrance into and Exit from the Russian Federation”.  This
Resolution considerably simplifies the terms and conditions of foreign individuals’ registration with
the Ministry of Foreign Affairs for the purpose of obtaining consular services and the procedure for
executing exit/return certificates and obtaining entrance authorizations for foreign individuals andpersons without citizenship.  In addition, regulations governing assistance to foreigners with respect to
events insured against were introduced.
Instruction No. 365-U of the Bank of Russia, dated 30 September 1998, lifted the previously
applicable prohibition on the payment of contributions to the charter capital of credit organizations inthe Russian Federation in foreign currency.
Finally, Federal Law No. 164-FZ “On Leasing” which governs the performance of leasing
operations in Russia in accordance with the international rules and standards was adopted on
29 October 1998.
Adaptation to the WTO rules and disciplines.Matters related to the improvement of Russian legislation, including in the field of foreign
trade regulation, have been repeatedly discussed at meetings of the Government of the RussianFederation, special hearings of the State Duma and conferences of other governmental bodies devoted
to the problems and prospects of Russia’s accession to the WTO.
In particular, the matter “On amendments and additions to the Russian Federation legislation
in connection with Russia’s accession to the WTO” was discussed at a meeting of the Russian
Federation Government’s Council for the Preparation of Priority Economic Regulations.
Activities aimed to make amendments and additions to current legislation, prepare new draft
laws and improve the regulatory framework are maintained by experts of federal agencies, research
institutes and other interested organizations.  Consulting assistance in this work is provided by foreign
experts, and many draft laws are submitted for expertise to international organizations.
The core activities in this field are concentrated within the Commission of the Government of
the Russian Federation on the WTO matters.  Specific proposals for amendments and additions to
current legislation are prepared by inter-agency working groups of this Commission and are devoted
to specific sector problems and particular WTO Agreements.
In particular, the inter-agency TBT/SPS working group has prepared the Programme of
Actions to be Taken to Ensure Full Compliance with the WTO TBT and SPS Agreements (see more
details about this Programme in WT/ACC/RUS/25 and WT/ACC/SPEC/RUS/8).  A separate section
of that document includes specific arrangements to improve the Russian legal and regulatory
framework in accordance with the key provisions of the said Agreements.
The Gosstandart, the Ministry of Health, the Ministry of Agriculture and other interested
agencies are currently drafting new laws (working titles): “On Conformity Assessment”, “OnWT/ACC/RUS/31
Page 7
Technical Barriers to Trade”, “On Quarantine” etc.  New regulatory documents are also under
preparation (see more details in WT/ACC/RUS/30).
As part of activities to improve the laws governing the protection of intellectual property
rights, the Russian Patent Committee and other agencies involved in the inter-agency TRIPS workinggroup have prepared a package of documents containing amendments and additions to the Patent Law
of the Russian Federation No. 3517-1 dated 23 September 1992, the Russian Federation Law
No. 3520-1 “On Trademarks, Service Marks and A ppellations of Origin” dated 23 September 1992,
and the Russian Federation Law No. 3523-1 “On Legal Protection of Computer Programs and
Databases” dated 23 September 1992 for the purpose of fuller compliance with the provisions of the
TRIPS Agreement as concerns industrial property.
It is also planned to amend the Customs Code of the Russian Federation (with respect to
border measures).  It should be noted that the said draft law has already received a positive evaluation
from the WIPO.  See more details about the TRIPS-related lawmaking activities in WT/ACC/RUS/29.
It remains the consistent policy of the Russian Federation to liberalize foreign trade activities
and to put its national legislation in line with the WTO rules and regulations.
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