RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/RUS/33
2 November 1999
(99-4722)
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 16-17 December 1998.
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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 foreign trade regulations. See documents Nos. L/7410,
WT/ACC/RUS/2, WT/ACC/RUS/ 9, WT/ACC/RUS/16, WT/ACC/RU S/27WT/ACC/RUS/31/, etc.
Below is a brief review of the key foreign trade laws and regulations adopted in the Russian
Federation between 15 November 1998 and 15 October 1999.
1.         General Provisions
1.1       Taxation
Federal Law No. 192-FZ “On Immediate Measur es Concerning Budget and Tax Policies”
dated 29 December 1998 revised previously existing excise rates by increasing them by 25 per cent on
average. The basic principle of Russian excise legislation, however, remained: excise rates are the
same for Russian-made and foreign goods.
New designs for excise levy tags, the use of which is mandatory for alcoholic products,
tobaccos and tobacco products, were introduced by Resolution No 1008 of the Government of Russia
“On Excise Levy Marks” on 4 September 1999. This Resolution did not make any new changes to the
previous procedure but merely summarized all developments in this sector since 1994.
Federal Law No. 154-FZ “On the Introduction of Amendments and Addenda to the First Part
of the Tax Code of the Russian Federation” took effect on 9 July 1999. This Law specifies and
provides details regarding a considerable number of the provisions of the Tax Code. For instance,
Article 5 of the Law states that all and any changes to tax legislation shall come into force no earlier
than a month after their official publication.WT/ACC/RUS/33
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Federal Law No. 159-FZ “On Putting into Force the Budget Code of the Russian Federation”
came into effect on 9 July 1999. According to this Law the Budget Code of the Russian Federation
shall take effect on 1 January 2000.
These latter two are major achievements in terms of greater stability and transparency of
fiscal and tax legislation of Russia.
1.2       Federal and regional authorities
Particular importance is attached to Federal Law No. 4-FZ “On Coordination of International
and Foreign Economic Relations of the Subjects of the Russian Federation” dated 4 January 1999,which lays down the general procedure for maintaining foreign economic relations for the Russian
Federation regions.
Federal Law No. 119-FZ “On the Principles and the Procedure for the Demarcation of the
Objects of Jurisdiction and of the Powers Between the State Power Bodies of the Russian Federationand the State Power Bodies of the Subjects of the Russian Federation” dated 24 June 1999 details the
mechanics of supremacy of the Constitution of the Russian Federation and federal laws over regional
laws.
Presidential Decree No. 362 dated 18 March 1999 acquires particular significance in this
context. The Decree suspended Resolution No. 645 of  the Head of Administration of the Belgorod
Oblast of 16 December 1998 restricting the export of unprocessed agricultural products from the
Oblast, as it contradicted the Constitution and the Civil Code of the RF. It was suggested that the
Head of the Belgorod Oblast Administration bring his decision into conformity with Russian
legislation.
2.         Market Access
2.1       Tariff Measures
Since December 1998 to date the Government of the Russian Federation adopted about 20
resolutions which adjust 595 import customs tariff rates. The large majority of these adjustments
(580) were reductions (some of them considerable) of import customs tariff rates.
This reduction in rates concerned first and foremost unprocessed agricultural products, the
crops or production of which are insufficient in Russia, and modern technology equipment. Inaddition, for the purposes of more effective customs payments collection, the number of tariff peaks
was cut back dramatically.
It should also be noted that Resolution of the Government of the Russian Federation No. 235
dated 27 February 1999 terminated prematurely as of 1 March 1999 the 3 per cent import surchargewhich had been introduced in July 1998 as a forced measure to safeguard the balance of payments.
In 1999, the Government of the Russian Federation took a series of decisions regarding the
introduction of export tariffs. Export tariffs are a double-edged measure, but a necessity to increase
the revenues of the federal budget of Russia. In view of the above, export duties are restricted to thosegoods, the exporters of which started gaining “super profits” due to the nearly fivefold escalation of
the Ruble rate to the U.S. Dollar.WT/ACC/RUS/33
Page 3
Thus, export duties were imposed in the amount of 5 per cent of the customs value on the
export of certain types of fish and fish products, alcohol, oil and derivatives, a number of organic and
non-organic chemical products, fertilizers, unprocessed leather, coniferous and deciduous timber,
paper, ferrous, non-ferrous and precious metals. In order to satisfy the needs of the national market
increased duty rates were fixed for some very small groups of commodities (precious metals scrap,seeds of oil-yielding plants, valuable varieties of hard-leafed timber). There are no export duties for
finished products.
On the whole the export tariff has a purely fiscal function. According to Federal Law No. 36-
FZ “On the Federal Budget for 1999” the ballpark estimate of the volume of revenues from import
customs duties in 1999 is US$3 billion, and US$1.5 billion from export duties. The estimate for 2000
is US$1.8 billion for import duties and US$1.7 billion for export duties.
Another step towards liberalization of the access of foreign goods to the Russian market is
Federal Law No. 104-FZ “On the Special Economic Zone in Magadan Region” dated 31 May 1999,
according to which foreign goods imported to Magadan are exempted from customs payments.
Differentiated customs treatment is instrumental in the facilitation of market access for
foreign goods (this issue is addressed in Resolution No. 908 of the Government, 8 August 1999).
Order No. 450 dated 17 July 1999 and Order No. 573 of the State Customs Committee of the Russian
Federation “On Amendments and Supplements to Order No. 450 of the State Customs dated
30 August 1999 establish a simplified procedure for customs value control for new automobilesimported by official dealers.
2.2       Non-Tariff Measures
Resolution of the Government of the Russian Federation No. 1539 of 25 December 1998 “On
the Importation into and Exportation from the Russian Federation of Medicaments and
Pharmaceutical Substances”, according to which the import of medicines is performed under licenses
issued by the Ministry of Trade of Russia (which were formerly issued by the Ministry of Health),
whereas export of such goods does not require a license.
Resolution No. 18 of the Government of the Russian Federation “On Additional Measures for
the State Regulation in the Procurement, Realisation and Export of the Wood of Valuable ForestSpecies” dated 5 January 1999 introduced automatic unrestricted licensing for export of valuable
varieties of hard-leafed trees.
Resolution No. 37 of the Government of the Ru ssian Federation “On the Realisation of the
Agreement Between the Russian Federation and the European Community on Trade in TextileGoods” dated 11 January 1999 reduced the number of items subject to licensing for the purposes of
textile exports to the EC and introduced an auto matic licensing procedure in accordance with an
earlier bilateral agreement.
By Resolution No. 609 of the Government of the Russian Federation “On Amending the
Decision of the Government of the Russian Federation No. 1471 dated  7 December 1998” dated
7 June 1999 the Government simplified the procedure for licensing imports of tobacco and tobacco
products, taking into account the recommendations expressed by Russia’s trade partners. According to
this Resolution licensing is not required for samples of tobacco and tobacco products imported for
testing, analysis and certification.
Government Resolution No. 130 “On Supplies of and the Procedure for Distribution of
Agricultural Products and Foodstuffs Provided in 1999 under Agreements with the United States
Government and the European Union (amended and su pplemented as of 18 June, 16 August 1999)” ofWT/ACC/RUS/33
Page 4
5 February 1999 imposed a temporary ban on export fr om Russia of agricultural products included in
the humanitarian aid provided by the EC and the USA. This ban will be maintained throughout the
period of such aid provision. Such was the requirement of the countries providing the humanitarian
aid and is therefore one of Russia’s international obligations.
For the sake of national interests of Russia Federal Law No. 61-FZ “On the Temporary Ban
on the Imports of Ethyl Alcohol” dated 31 March  1999 introduced a ban on import of alcohol derived
from any type of raw materials, from 1 May 1999 till 1 January 2002. Considering how important
revenues from tax payments on strong alcoholic beverages production are for the federal budget of
Russia, and considering also the continuous campaign to prevent illicit production of alcoholic
beverages, the Russian delegation believes that the said Law is entirely consistent with provisions of
Article XX of GATT-94.
In order to prevent the disintegration of the domestic market for oil derivatives of the Russian
Federation (between May and August 1999 prices for gasoline, diesel fuel and fuel oil increased by
2.5 times, and the volume of exports of these products from Russia was equally augmented) and
bearing in mind the strategic importance of fuel supplies for successful harvesting of agriculturalproducts and accommodating the needs of Northern and distant regions of the Russian Federation, the
Government of Russia took Resolution No. 866 “On Ensuring the Deliveries of Certain Types of Oil
Products to Consumers in the Russian Federation” dated 30 July 1999 according to which, as a
temporary measure, export of certain types of oil derivatives can be performed only after the monthly
requirement of their supply to the national market has been fulfilled.
With the above tasks in mind Russia is currently in transition from the mechanism established
by Resolution No. 866 to tariff regulation using increased export duties for oil derivatives.
2.3       Trade Remedies Measures
For the purposes of effective implementation of the provisions of the Federal Law No. 63-FZ
“On the Measures for Protection of the Economic Interests of the Russian Federation in Foreign Trade
in Goods” dated 14 April 1998 provided for special protective measures, antidumping and
compensatory measures, three regulatory documents were developed and approved by the following
Resolutions of the Government of the Russian Federation: (1) No. 183 “On the Special Features of
Definition of Material Injury to a Branch of the Russian Economy as a Result of Dumping Imports”dated 16 February 1999; (2) No. 184 “On the Special Feat ures of Definition of  Material Injury to a
Branch of the Russian Economy when a Foreign State (an Alliance of Foreign States) Subsidises
Goods Imported to the Russian Federation, and Determination of the Amount of the Subsidy” dated
16 February 1999; and (3) No. 274 “On the Regulations for Conducting Investigations Prior to the
Introduction of Special Protective Measures, Antidumping or Compensatory Measures” dated11 March 1999.
The above documents allowed the creation a legal framework for the application of special
protective measures, antidumping and compensatory measures in the Russian Federation which was
earlier unavailable.
Provisional special duties for sugar imposed under the above Law as notified to the last
Working Party were revoked effective 1 January 1999 for raw sugar and effective 15 February 1999
for white sugar.
Based on the preliminary results of a special investigation, the Government of the Russian
Federation has introduced by Resolution No. 902 “On the provisional safe guards for the Protection of
the Russian Manufacturers of Starch Syrup” dated 5 August 1999, provisional 15 per cent special
duties for starch syrup for a term of 180 days. The investigation is still in progress.WT/ACC/RUS/33
Page 5
3.       State Trading Enterprises
No developments have occurred in this section of foreign trade legislation of Russia as
compared with the previous period.
4.         TBT
Government Resolution No. 498 “On Approving the Regulations on the State Committee of
the Russian Federation for Standardization and Metrology” of 7 May 1999 endorsed the Regulations
on the State Committee of the Russian Federation for Standardization and Metrology.
Resolution No. 766 of the Government of the Russian Federation “On the Approval of the
List of Products that may be subject to procedures of conformity declaration, and of the procedure for
the adoption of the conformity declaration and its registration” was adopted on 7 July 1999, to define
a list of low risk goods (over 250 items) in respect of which a declaration of the producer (vendor,
executor) may be sufficient to demonstrate their co nformity to regulatory requirements so that a
conformity certificate would not be necessary. When registered such declaration has equal legal forcewith a conformity certificate.
Thus, producers of different goods acquire the option of either completing the necessary
certification procedures or submitting their own declaration. This decision of the Government serves
to simplify the access of foreign goods to the Russian market.
Resolutions No. 685 dated 24 June 1999 and No. 787 of the Government of the Russian
Federation dated 10 July 1999 made further amendments to Resolution No. 601 of the Government of
the Russian Federation “On the Marking of Goods and Products on the Territory of the Russian
Federation with Forgery Proof Conformity Marks dated 17 May 1997. This resolution has beenaddressed more than once during the Working Party Meetings.
As a result of the amendment, alcoholic products were excluded from the list of goods subject
to mandatory conformity marking, and the coming into effect of Resolution No. 601 was suspended
until 1 October 1999.
5.         SPS
Federal Law No. 52-FZ “On the Sanitary and Epidemiological Welfare of the Population”
dated 30 March 1999 took effect replacing the corresponding 1991 Law. The Federal Law set forth
sanitary requirements in respect of products im ported to the Russian Federation (Article 16) and
defined circumstances under which such products are subject to preliminary registration (Article 43).
Letter No. 13-8-01/400 of the Ministry of Agricu ltural Products of Russia “On the Procedure
of Import and Use of Imported Animal Products” of 8 April 1998 laid down the procedure for import
to the Russian Federation and use of imported animal products (beef and beef sub-products, pork and
pork sub-products, small cattle meat and sub-products, poultry and poultry products, fish and seafood,horse-flesh, game and exotic animals meat).
This document details the procedure for import of the above goods from different countries.
6.         TRIPS
Decree of the President of the Russian Federation No. 651 “On the Structure of the Federal
Bodies of Executive Power (with the amendments  and supplements of 8 June, 28 June, 6 July,
23 July, 9 August 1999)” dated 25 May 1999 abolished the Russian Agency for Patents andWT/ACC/RUS/33
Page 6
Trademarks (Rospatent) and transferred its functions to the Ministry of Justice of Russia. Decree of
The President of the Russian Federation No. 954 “On Issues of the Ministry of Justice of the Russian
Federation” dated 2 August 1999 approved the Regulati ons on the Ministry of Justice of Russia under
which it is authorized to perform, without limitation, legal protection of intellectual property, carry
out the functions of patent department and procure improvement of the legislation with regard tocopyright and related rights.
For more effective prevention against infringements of intellectual property legislation, the
State Customs Committee adopted Order No. 01-14/ 632 “On Enhancing Control over the Movement
of Goods Containing Intellectual Property Obje cts” dated 27 May 1999 to approve the List of
Distinguishing Features of Counterfeit Products.
7.         TRIMs
Federal Law No. 19-FZ “On the Introduction of Amendments and Addenda into the Federal
Law on Production Sharing Agreements” dated 7 January 1999 was adopted. This Law does a lot to
bring the provisions of Russian PSA legislation into conformity with the requirements of foreigninvestors in terms of:
- simplification of the procedure for subsoil allocations (not just by federal laws);
- extension of their nomenclature.
Federal Law No. 32-FZ “On the Introduction to Legal Acts of the Russian Federation of
Amendments and Addenda Arising from the Federal Law on Production Sharing Agreements” was
adopted on February 10, 1999. The following Laws were amended to conform:
- “On Subsoil” which provides enhanced rights for foreign investors
- “On the Continental Shelf”
- “On State Regulation of Foreign Trade Activity” (export of goods under PSAs is not
restricted for quantity)
- “On Foreign Investment in the RSFSR”
- “On Motorways in the Russian Federation”
- “On Customs Tariffs” (goods imported and exported under PSAs are exempted from
customs duties)
- “On Fundamentals of the Tax System in the Russian Federation”
- “On Tax on Property of Enterprises”
- “On Value Added Tax”
- “On Tax on Revenues of Enterprises and Organizations”
- “On Excises” (all goods except motorcars imported and exported under PSAs are
exempted from excise payment)
- “The Customs Code” (goods imported and exported under PSAs are exempted from
customs duties).
Federal Law No. 87-FZ dated 1 May 1999 and Federal Law No. 106-FZ dated 31 May 1999
attribute the Kirinsk long-term block under the “Sakhalin-3” project, and about 30 oil and gas
condensate deposits in Tomsk Oblast to subsoil allocations that can be granted for use under PSAs.
These legislative provisions were further developed in the Resolution of the Government of
the Russian Federation No. 740 dated 3 July 1999 and No. 741 dated 8 July 1999, governing theissues of regulation of the composition and procedure for compensation of costs of the foreign
investor under a PSA and the formation a nd use of the liquidation fund under a PSA.WT/ACC/RUS/33
Page 7
On 25 February 1999 Federal Law No. 39-FZ “On Investment Activity in the Russian
Federation Pursued in the Form of Capital Investments” took effect.
This Law lays down the legal and economic framework of investment activity in the form of
capital investments in the territory of the Russian Federation, and sets forth guarantees of equalprotection of rights, interests and property for all the participants of investment activity in the form of
capital investments, irrespective of the type of ownership (including for foreign investors).
On 9 July 1999 Federal Law No. 160-FZ “On Foreign Investment in the Russian Federation”
took effect much to the improvement of Russia as a favourable investment environment. Thus, for
instance, Article 5 of the above Law provides expressly guaranteed remedies for foreign investments.
Article 9 of the Law for the first time in the Russian legislation contains a “Grandfather Clause” fornon-exacerbation of cumulative tax burden of foreign investors. Articles 15 – 17 detail the benefits
and guarantees available to foreign investors, including in respect of nationalization.
8.         Government Procurements (GP)
In the reviewed period in the Russian Federa tion Federal Law No. 97-FZ “On Tenders for the
Placement of Orders for the Supply of Goods, Performance of Works, Provision of Services for State
Needs” was adopted on 6 May 1999.
This Law regulates the legal relations arisin g between the organizer of a tender (state
customer) and bidders of a tender [suppliers (contractors) ] in the course of tender for contracts for
deliveries of goods, performance of works and rendition of services for state needs. The Law is the
first of its kind in Russia but the consideration of this area goes on.
9.         Services
9.1.      Financial Services
Federal Law No. 178-FZ “On Amending the Federal Law on Licensing Specific Kinds of
Activities” dated 26 November 1998 extended the list of types of activity subject to licensing in the
Russian Federation by including investment funds management.
On 5 March 1999 Federal Law No. 46-FZ “On Prot ection of Rights and Legitimate Interests
of Investors on the Securities Market” took effect. It  provides state and public protection of rights and
lawful interests of investors on the securities market and defines the procedure for and forms of
compensation for damage they incur through illegitimate acts of issuers of securities.
Resolution No. 472 of the Government of the Russian Federation “On the Licensing of
Certain Kinds of Auditing Activities in the Russian Federation” dated 27 April 1999 approved
corresponding Regulations allowing foreign citizen s to participate on a par with Russian citizens in
certain activities.
23 June 1999 was marked by adoption Federal Law No. 117-FZ “On the Protection of
Competition on the Financial Services Market”. This Law regulates legal relations affecting
competition on the market for securities, banking and insurance and other financial services, and
provides for protection of competition. It should be emphasized that its provisions extend to acts and
agreements made by residents of the Russian Federation in or outside of Russia.WT/ACC/RUS/33
Page 8
9.2.      Other Types of Services
Resolution No. 180 of the Government of the Russian Federation “On the Procedure for
Regulating the Admission and Use of Global Mobile Personal Satellite Communication Systems on
the Telecommunications Market of Russia” date d 16 February 1999 approved the procedure for
regulation of access to, and use of global systems of mobile satellite communications on the Russian
telecommunications market. This procedure restricts access to the market to Russian operating
companies.
Resolution of the Government of the Russian Federation No. 698 dated 26 June 1999 states
that licensing of surface TV and radio broadcasting in RF cities populated by over 200 thousand
people must proceed only on a tender basis. This Resolution also approves the Regulations governingsuch tender.
30 April 1999 was marked by a major breakthrough as the Merchant Shipping Code of the
Russian Federation No. 81-FZ entered into force. The 430 Articles of the Code regulate all legal
relations arising out of commercial seafaring including property relations, on the basis of the parity,free will and material independence of the participants.
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