RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/118 
27 July 2004 
 (04-3244) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Submission from Ukraine  
 
Additional Questions and Replies 
  
 The following submission, dated 13 July 2004, is being circulated at the request of the 
Delegation of Ukraine. 
 
 
_______________ 
  WT/ACC/UKR/118 
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 TABLE OF CONTENTS 
 
ECONOMIC POLICIES.............................................................................................................. .........1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................5  
- Investment Regime.............................................................................................................. ......8  
- State Ownership and Privatization .........................................................................................9  
- Pricing Policies ............................................................................................................... .........13  
- Competition Policy............................................................................................................. .....16  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................17  
POLICIES AFFECTING TRADE IN GOODS ................................................................................19  
- Trading Rights ................................................................................................................. .......19  
A. IMPORT REGULATION......................................................................................................24  
- Registration requirements for engaging in importing.........................................................24  
- Ordinary cust oms duties ........................................................................................................ 27 
- Tariff rate quotas, tariff exemptions.....................................................................................29  
- Fees and charges for services rendered.................................................................................31  
- Application of internal taxes to imports ...............................................................................35  
- Excise taxes................................................................................................................... ...........35  
- VAT............................................................................................................................ ..............38  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............43  
- Customs valuation.............................................................................................................. .....47  
- Rules of origin ................................................................................................................ .........53  
- Other customs formalities ...................................................................................................... 55 
- Preshipment inspection ......................................................................................................... .56 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................56  
B. EXPORT REGULATIONS ...................................................................................................61  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........61  
- Registration requirements for engaging in exporting..........................................................62  
- Export rest rictions ............................................................................................................ ......65  
- Quantitative export restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............67  
- Export subsidies ............................................................................................................... .......70  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................70  
- Industrial policy, including subsidies....................................................................................70  WT/ACC/UKR/118 
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 -
 Technical barriers to trade, sanita ry and phytosanitary measures ...................................77  
- Sanitary and phytosanitary measures...................................................................................89  
- Trade-related investment measures ......................................................................................93  
- State-trading entities......................................................................................................... ......94  
- Free zones, special economic areas........................................................................................95  
- Government procurement......................................................................................................99  
- Transit........................................................................................................................ ............101  
- Agricultural Policies .......................................................................................................... ...106  
(a) Imports........................................................................................................................ ...........106  
(c) Internal Policies.............................................................................................................. .......106  
TRADE-RELATED INTELLECTUAL  PROPERTY REGIME..................................................107  
2. Substantive Standards of Protection, Including Procedures for the Acquisition 
and Maintenance of Intellectual Property Rights..............................................................110  
(a) Copyright and related rights................................................................................................110  
(b) Trademarks, including  service marks.................................................................................111  
(c) Geographical indications, including appellations of origin...............................................112  
(h) Requirements on undisclosed information, including trade secrets and test data..........113  
3. Measures to Control Abuse of Intellectual Property Rights.............................................116  
POLICIES AFFECTING TRADE IN SERVICES.........................................................................130  
- Transparency ................................................................................................................... .....135  
- Trade Agreements............................................................................................................... ..136  
ANNEX 1 ........................................................................................................................ ....................137  
ANNEX 2 ........................................................................................................................ ....................143  
ANNEX 3 ........................................................................................................................ ....................144  
ANNEX 4 ........................................................................................................................ ....................153   WT/ACC/UKR/118 
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 ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 The additional material on fiscal policy, when provided should not duplicate information on 
current taxes applied to goods, which is addressed later in the report, but rather should focus on 
direct and other forms of taxation and on Ukra ine's goals and techniques for maintaining fiscal 
stability. 
This section needs additional description on ho w the Central Bank operates to execute monetary 
policy and recent results. 
Answer:
 
The main objective of the National Bank of Ukraine has been the stability of the national currency.  
The measures taken to attain this objective contri buted to the minimization of the macroeconomic 
risks with a view to improvement of the investment climate and sustaining high economic growth rates.  The National Bank of Ukraine has applied monetary policy instruments in order to contain 
inflation within one digit rates as well as to support the Hryvnia exchange rate with regard to the US 
dollar.  The interventions in the currency market of Ukraine were the main source through which the 
National Bank has been satisfying the demand of th e economy for money.  Also, the National Bank of 
Ukraine has carried out transactions of refinanci ng of banks, using such mechanisms as short term 
(three times a month) and long term (once a month)  tenders, as well as support of liquidity of banks 
by way of granting loans overnight as well as tran sactions of direct repo.  When necessary, the 
National Bank of Ukraine engages in open market  operations by placing in the market its own 
certificates of deposit and by buying and selling government securities. 
Where necessary the National Bank of Ukraine has b een working at the improvement of the interest 
rate policies.  In particular, the National Bank of  Ukraine has initiated the establishment of various 
levels of interest rates in overnight loans (with or  without a surety) and the establishment of different 
rates for active and passive transactions. 
At present the National Bank of Ukraine is pursuing rather moderate monetary policy course.  Both 
monetary and fiscal leverages are used to contain the monetary mass in circulation. 
The monetary policy introduced by the National Bank of Ukraine in 2003 was directed at the internal 
stability of Hryvnia and increased monetization of the national economy. 
The monetary and credit policy in 2003 has ensured the monetary support of the economic growth and 
structural change aimed at gradual creation of the environment for the transition to the stable 
development rates.  The GDP growth rate is 9. 3 per cent.  The most dynamic development was 
detected in construction, processing industry, trad e and transport. The development and structural 
change in the economy of the country were based  upon the increase both of internal demand, in 
particular investment demand, and external dema nd.  The economic growth was based upon rather 
active loan support of the bank system and adequa te monetary expansion of the National Bank of 
Ukraine. 
In the course of the last year the monetary base grew  by 30.1 per cent and the monetary mass grew by 
46.5 per cent.  The monetization level has grown from 24.45 per cent up to 30.38 per cent of nominal 
GDP.  The higher level of monetiza tion is responsible for nearly 58 per cent of the increase in the 
monetary mass.  Also, approximately 22 per cent of the increase of the monetary mass is due to real WT/ACC/UKR/118 
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 GDP growth.  The rest of the increase of the monetary  mass is due to the price growth.  The inflation 
rate over the year is 8.2. 
Over the last year, the savings of natural persons have increased by 70 per cent, the amount of bank 
loans given to economic agents grew by 60 pe r cent, the long term loans having grown by 
160 per cent.  The share of long term loans in total loans grew from 28 per cent to 45 per cent. 
In the course of the year the leading rating agen cies (in particular, "Mood y's" and "Standard and 
Poor's") have increased the credit rating of Ukraine. 
The basic principles of the economic program of the government for 2004 are fostering innovation 
and investment based development, stimulation of private initiative by way of the decrease of the tax 
burden, reform of the budget system, deepening of the integration into the world economy, 
strengthening the finances of enterprises, the elim ination of the payment crises and the growth of 
income of the population. 
In 2004 the tendencies of development of the econo my and of the monetary and loan market, which 
had formed in the course of the previous years, have  been retained. In the first quarter of 2004 there 
was a substantial widening of the monetary mass (by 6.4 per cent) and substantially less growth of the 
monetary base (by 3.4 per cent versus 1.24 per cent in January th rough March of 2003). 
The monetary multiplier has grown from 2.37 as of th e beginning of 2004 to 2.44 as of the end of the 
first quarter which indicates the improvement of the degree of regulation of the monetary and loan 
market and further improvement of the stat us of the banking sector of the economy. 
At present, in connection with the introduction of the single treasury account for budgets of all levels 
there is an urgent need for improvement of th e mechanism of management of monetary flows. 
That is why the Cabinet of Ministers and the Nati onal Bank of Ukraine have developed draft Order of 
the Cabinet of Ministers of Ukraine and the Na tional Bank of Ukraine "On the Coordination of 
Activities of the Ministry of Finance of Ukraine, the State Treasury of Ukraine and the National Bank 
of Ukraine" with a view to improve the investme nt potential of the economy of Ukraine through the 
introduction into circulation of funds accumulated in  that account and an increase in the degree of 
coordination of monetary and fiscal policies. 
The main purpose of that normative act is to enab le the National Bank of Uk raine to make defensive 
steps to regulate the monetary supply in the nationa l market.  The purpose of such steps is to ensure 
the necessary liquidity of the bank system and as a final result the stability of the national currency 
unit.  These steps will be based upon the mechanis ms of exchange of information between the 
Ministry of Finance, the National Bank of Ukraine and the State Treasury. 
Also, an interministerial consulti ng group will be created with the participation of the National Bank 
of Ukraine, Ministry of Finance of Ukraine, the St ate Treasury of Ukraine, the State Customs Service 
and the State Property Fund of Ukraine, with a view  to ensuring the adequate reaction to external 
factors influencing the monetary and loan market. 
According to the Constitution of Ukraine and to  the Law of Ukraine "On Taxation System" of 
25 June 1991 No. 1251–XII as amended by the Laws  of Ukraine introduction and abolishment of 
taxes and fees (mandatory payments) payable to  the budgets and state purpose funds, as well as tax 
privileges granted to tax payers, shall be carri ed out by the Verkhovna Rada of Ukraine, the 
Verkhovna Rada of the Autonomous Republic of Crimea,  township, village and city/towns Radas, in 
accordance with this Law and other laws of Ukraine on taxation.  WT/ACC/UKR/118 
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 Tax rates, procedures for collecting taxes and fees (mandatory payments) and tax privileges cannot be 
determined by Ukrainian laws other than those in taxation. 
Payers of taxes and fees (mandatory payments) ar e legal entities and natural persons, which shall pay 
taxes and fees (mandatory payments), as prescribed in laws of Ukraine. 
Registration of payers of taxes and duties (mandatory  payments) shall be carried out by bodies of the 
state tax service and other state bodi es in accordance with  legislation. 
Taxation objects include incomes (profits), added va lue of products (services, works); value of 
products (works, services), including customs valu e, or natural properties of products (works, 
services); special use of natural resources; property of natural persons and legal entities; and other 
objects specified in taxation laws of Ukraine. 
The following taxes and fees (mandatory payments ) are collected in the territory of Ukraine: 
− state taxes and fees (mandatory payments); and 
− local taxes and fees (mandatory payments). 
The state taxes and fees (mandatory payments) include: 
− value added tax; 
− excise duty; 
− enterprise profit tax, including dividends paid to the state budget by state non-corporate, 
governmental or communal companies; 
− personal income tax; 
− customs duty; 
− state duty; 
− immovable property (real estate) tax; 
− land tax; 
− rental payments; 
− tax on owners of transport means and othe r self-propelled machines and mechanisms; 
− craft tax; 
− fee for carrying out geological exploration works performed for the state budget funds; 
− fee for special use of natural resources; 
− fee for environmental pollution; 
− fee to the Fund for taking measures to eliminate the consequences of Chornobyl 
catastrophe and for social protection of the population; 
− obligatory state pension insurance fee; 
− fee to the State Innovation Fund; 
− payment for trade patent to carry out cer tain types of entrepreneurial activities; 
− fixed agricultural tax; 
− fee for development of viticulture, gardening and hop-growing; 
− stamp duty (shall apply till 1 January 2000); 
− unified fee collected at entry points of the Ukrainian state border; 
− fee for the use of radio-frequency resources of Ukraine; 
− fee to the Fund for Guaranteeing Deposits of Natural Persons (initial, regular, special); 
− fee in the form of an extra charge to the e ffective tariff for electricity and heating supply; 
and 
− fee for making performance tours. WT/ACC/UKR/118 
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 Local taxes include: 
− advertising tax; and 
− communal tax. 
Local fees (mandatory payments) include: 
− vehicle parking fee; 
− market fee; 
− fee for issuance of authoriza tion to occupy an apartment; 
− resort fee; 
− fee for participation in horse races at hippodrome; 
− fee for winnings through betting at hippodrome races; 
− fee for betting on horse races; 
− fee for permission to use local signs & symbols; 
− fee for permission to shoot motion pictures and TV programs; 
− fee for permission to conduct local au ctions, competitive sales and lotteries; 
− fee for permission to set up trade or service outlets; and 
− fee collected from dog owners. 
The major principles of the taxation system are equality and non-discrimination – ensuring equal 
treatment for subjects of economic activity (legal entities or natural persons, including non residents) 
while determining their tax and fee liabilities (m andatory payments), and stability - ensuring 
invariability of taxes and fees (mandatory payments) and their rates, as well as tax privileges over the 
fiscal year. 
The period of 2002 – 2003 saw the passage of a seri es of laws underlying the taxation system reform, 
in particular as concerns loosening the tax burden with regard to private tax and corporate tax. 
Positive impact is expected to be generated by th e introduction of a 13 per cent individual income tax 
and amendments in the corpora tions taxation system having la id solid foundations for positive 
developments towards transforming taxation from a purely fiscal instrument into an effective lever of the state economic policy. 
These mechanisms however are unable to address all concerns and deficiencies of the taxation laws 
and its effects on implementation of structur al and innovation development challenges. 
Ukraine's tax system is being comprehensively reform ed in accordance with the strategic goals set out 
in President of Ukraine's Message to the Verkhovna Rada of Ukraine "European Choice. Conceptual 
foundations for the strategy of Ukraine's economic and social development for the years 2002-2011", 
and based on provisions established by the Cabinet of  Ministers of Ukraine's Program "Consistency. 
Efficiency.  Responsibility". 
The main objectives of the tax reform are creation of a new system of tax relations in Ukraine, 
determining principles of the system's structure which are to ensure the stability of the tax legislation, 
the lowering the tax burden, prevention of any signs of tax discrimination, and creation of the same 
conditions for taxation of all the taxpayers. 
The tax reform policy must become the basis for economic reforms, for the creation of a socially 
oriented market economy, and the enhancement of economic growth rates, which are a prerequisite 
for the increase in the people's living standard and well-being. 
Further pursuance of comprehensive taxation reform s aimed at reduction and reasonable balance of 
taxation burden, simplification of the taxation sy stem, enhancement of taxation enforcement and  WT/ACC/UKR/118 
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 control over the levels of production costs, minimiza tion of expenditures associated with the taxation 
laws enforcement and administration must become  determinant factors of economic development. 
The total number and amounts of taxes and mandatory  payments must be limited, especially with 
respect to small businesses.  The reduction of cor poration tax rate, modifica tion of the individual 
income taxation and substantial cut in its rate to occur in 2004 are expected to positively affect the 
processes of the economy "de-shadowing". 
The Government and the Verkhovna Rada of Ukraine see as their principal and most urgent task the 
immediate identification of the content and approval,  within the shortest possible timeframes, of a 
series of regulatory acts which would ensure further reformation of the budget system, as well as the adoption of the Tax Code and its transformation from a purely fiscal instrument into an effective tool 
of the government's socio-economic strategy. 
Ukraine's financial system reformation will be  targeted at ensuring the domestic economy's 
integration in the global economic environment and adjustment of Ukrainian taxation laws to meet 
WTO and EC requirements and principles. 
Development of a transparent, clear and fair taxati on system must become a driving force of raising 
enterprises' economic efficiency. 
The following measures are envi saged to the end of Ukrainia n taxation laws improvement: 
− reduction of the corporation tax down to th e level of not higher than 20 per cent; 
− introduction of the individual property tax; possibility of introduction of a single social 
fee; 
− institution of unified standards of tax, fina ncial, statistical and accounting reporting of 
enterprises of all types of ownership; 
− improvement of approaches to tax depreciation; 
− gradual harmonization of accounting and taxa tion bookkeeping and inventory, a stage-by-
stage reduction and further elimination of economically ungrounded benefits; 
− tax administration system improveme nt, prevention from tax evasions; 
− further improvement of the simplified system s of taxation, accounting and reporting of 
small businesses; and 
− implementation of a set of activities to the e nd of Tax Code approval and enforcement. 
- Foreign Exchange and Payments 
Question 2 Paragraph 10:  We would like to have clarification of the mention that "Foreign exchange could 
not be utilized to repay debt owed by non-resi dents".  Is this restriction still applied? 
Answer:
 
Ukrainian law contains no prohibition of the paymen t by a resident of debt obligations of non-
residents.  However, when a resident has provide d a guarantee on the debt of a non-resident, and the 
guarantee is invoked, the resident may not meet its  obligations as guarantor by purchasing foreign 
exchange in Ukraine's inter-bank market.  Rather, the resident must use its own foreign exchange 
funds, or borrow the necessary foreign exchange.  Such  transactions relate solely to the movement of 
capital, and do not affect trade in goods or services. WT/ACC/UKR/118 
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 Question 3 
Para 10:  What is the "appropriate documentat ion" required to obtain foreign exchange for 
payment for imports? 
Answer:
 
Pursuant to Item 2.3 of the Rules on the Conduct of Transactions on the Inter-Bank Foreign Exchange 
Market of Ukraine1, the following documents may be the basi s for a purchase of foreign exchange on 
the inter-bank foreign exchange market of Ukra ine (hereinafter, the "IFE Market"), in case of 
payments to non-residents connected with commercial transactions: 
− a contract with a non-resident or any other document, which, pursuant to Ukrainian law, 
is regarded as contract; 
− a cargo customs declaration, if a product is imported into Ukraine; 
− an act (for delivery-acceptance etc.) or any other document, which evidences the 
rendering of services, the performance of work or the importation of intellectual property 
rights; 
− documents demonstration: the documentary form of payment (a letter of credit, 
collection), the promissory note form of paym ent (a promissory note, by which a resident 
importer has evidenced its debt to a non-resident under a foreign trade contract); and 
− a reference paper from the State tax administration, wherein the resident is registered as a 
taxpayer.  The reference paper indicates th e amount of foreign exchange, which is 
purchased under a foreign trade contract and information on the current bank account in 
foreign currency that is designated by the r esident as the account from which the foreign 
currency funds purchased on the IFE Market will be transferred to meet the resident's 
obligations to non-residents in the same fore ign currency.  The client furnishes this 
statement to the authorized bank in the ev ent of a purchase of foreign exchange for 
Ukrainian hryvnias under a foreign trade cont ract, the value of which contract exceeds 
US$ 10,000 or an equivalent of this amount in any other foreign currency, as well as in 
the event of purchases on the IFE Market of any amounts in foreign currency in order to transfer such funds for the benefit of non-r esidents that are located in off-shore zones. 
Question 4 
We will need further definition of the practi cal difference between current account and capital 
account payments.  The statements in paragr aph 10 don't really demonstrate a functional 
difference. 
Answer:
 
According to the Article XXX of the Agreement of the International Monetary Fund, the payments on 
the current operations are the payments, which ar e done with the purpose, different from to the 
transfer of capital, and which include, without the limitations: 
− all payments, which are subject to payment in connection with foreign trade, another 
current activity, including servi ces, and also in connection w ith the work of usual short 
term bank and credit mechanisms; 
− payments, which are subject to payment in the form of percentages on the loans and in the 
form of the net income from other investments; 
                                                      
 1As approved by Resolution No. 127 of the Governing Board of the National Bank of Ukraine, dated 
18 March 1999, and registered with the Ministry of Justice of Ukraine on 18 March 1999 under No. 171/3464 (as amended).
  WT/ACC/UKR/118 
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 − payments of the restrained sums due to repa yment of loans or due to the amortization of 
direct investments; and 
− the restrained sums of particular transfers into the current expenditures of families from 
abroad. 
Question 5 
The information provided in paragraph 11 is confus ing in that there appear to be requirements 
for foreign exchange but no indication of why these are applied. 
Answer:  
At present, pursuant to Article 3 of the Law of Ukraine, dated 23 September 1994, No. 185/94- ВР 
"On Procedures applicable to Payments in Forei gn Currency", Ukraine has a legislative provision, 
whereby "residents, who purchase foreign exchange through authorized banks for meeting obligations 
to non-residents, shall be obligated to transfer su ch funds within five business days from the date on 
which such funds were credited against the residents' bank accounts in foreign currency." 
This rule is not inconsistent with the requi rements of GATT, because it does not in any manner 
restrict rights of residents in the course of their engagement in foreign economic activities, and does 
not per se have an influence on the terms of paymen t for goods imported by residents.  When making 
payments under import contracts entered into with non-residents, residents have an opportunity to 
comply with payments terms specified in such contracts both by making payment with their own 
foreign exchange funds and with pr eviously purchased foreign exchange. 
The rule mandating that residents must transfer pur chased foreign exchange funds for the benefit of a 
non-resident within a five day term is one of the instruments aimed at encouraging financial discipline 
among business entities, and promotes prevention of i rrational use of foreign exchange and possible 
speculative transactions therewith.  Here, the Nati onal Bank of Ukraine has an additional lever to 
influence the situation on the domestic foreign excha nge market in order to ensure the stability of the 
situation, which, in its turn, is a positive factor fo r residents engaging in fo reign economic activities. 
Question 6 
We would appreciate further elaboration on the scope, nature, effect, and justification for 
restrictions on purchase and retention of foreign exchange, in particular any foreign exchange 
surrender requirements, even those applied on a te mporary basis.  For example, paragraph 145 
of the Draft Working Party Report indicates that one of the benefits granted to firms that located in the FEZs is exemptions from "ma ndatory sale of foreign currency earnings." 
Answer:
 
There are no restrictions on purchase and retention of foreign exchange, but there are some 
requirements concerning licensing of banks operating on currency market.  All procedural matters of 
purchase and retention of foreign exchange are stipulated by the National Bank of Ukraine. 
According to Article 3 of the Law of Ukraine issued on 23 September 1994 No.185/94-VR "On the 
procedure of carrying out payments in currency" th ere is a regulation stating that "residence buying 
foreign currency via representative banks for realiz ing their obligations with non-residents, must 
transfer the stated amounts within five working days from the moment money appear on the currency 
account of the resident". 
According to Article 6 of the Resolution of the National Bank of Ukraine No.502 "On the Instruction 
on the procedure of organization and execution of currency exchange operations on the territory of WT/ACC/UKR/118 
Page 8  
 
 Ukraine" issued on 12 December 2002, operations of currency purchase by persons on the amount 
exceeding € 10,000 must be carried out through bank pay desk. 
As for the introduction by Ukraine's National Bank of  the mandatory sale of foreign currency earnings 
of residents (As approved by Resolution No. 349 of  the Governing Board of the National Bank of 
Ukraine, dated 4 September 1998, "On Mandatory Selling of Proceeds in Foreign Currency for the 
Benefit of Residents"), it was caused by the destabilization of global financial markets in 
September 1997 which was further aggravated by  the global financial crisis that begun in 
August 1998, in particular in Russia.  These even ts provoked a critical situation on Ukraine's domestic 
foreign exchange market.  The mandatory sale of foreign currency earnings is among the instruments 
used to organize the foreign exchange market, and to pursue the tactical objectives of foreign 
exchange policies.  This requirement ensures a minimum guaranteed supply of foreign exchange on 
Ukraine's foreign exchange market, and is aimed at supporting the stability of the exchange rate of the 
Ukrainian hryvnia and to reduce speculative pressures in  the foreign exchange market.  This rule is 
not inconsistent with the requirements of Article VIII of the Articles of Agreement of the IMF, as it 
does not govern the making of payments to ensure r esidents' obligations to non-residents, but rather 
refers to residents' receipt of payments. 
- Investment Regime 
Question 7 Historically, there have been a number of laws providing for investment incentives, some of 
them WTO-inconsistent.  Possibly these are th e ones listed in paragraph 12 without further 
description. We need more transparency  in this section on that issue. 
If laws providing incentives have been repealed or fallen into disuse, it should be noted.  There 
should be, however, a comprehensive listing and a description of the provisions of any such legislation still in effect, and reference to and br ief description of those that have been repealed. 
Answer:
 
Among Laws on state support of the industrial sector's priority branches, it is only the Law "On 
Stimulation of Automobile Manufacture in Ukra ine" No.535/97-VR of 19 September 1997 (as 
amended) that makes the amount of investment a condition for the right to the special tax regime: 
− for the manufacture of cars – not less than US$ 150 million; 
− for the manufacture of trucks and buses– not less than US$ 30 million; and 
− for the manufacture of assembly and spare parts – not less than US$ 10 million. 
The local content requirements were eliminated in 2001. The Law "On Development of Ukraine's Autom obile Industry" No.1624- VI of 18 March 2004 has 
suspended the Law "On Stimulation of Automob ile Manufacture in Ukraine" except for those 
economic entities which have investment programm es approved by the Cabinet of Ministers by 
1 January 2004 and which have investment in the above mentioned amount. These entities are the 
Closed Joint Stock Company "Lviv Automobile Plant" and the Closed Joint Stock Company 
"Zaporizhzhia Automobile Plant", which have alread y received direct investment in monetary form 
and registered their investment programmes. 
Question 8 
Paragraph 14 refers to the use of promissory not es by companies with foreign investment. It is 
our understanding that, unlike domestic compani es, foreign companies have been prevented  WT/ACC/UKR/118 
 Page 9 
 
 
 from using promissory notes for the payment of VAT.  It seems that this practice is currently 
not allowed by the VAT law as modified in Oc tober 2003.  During the informal Working Party 
meeting of 25 March, however, the Ukrainian dele gation informed that there have been further 
legislative changes since October 2003.  Could yo u please confirm this information and provide 
more details. We would also like a cross-reference to this issue in the section of the draft 
Working Party Report dealing with VAT issues. 
Answer:  
Pursuant to provisions of Article 71 of the Law of  Ukraine "On the State Budget of Ukraine for 2004" 
of 27 November 2003 No. 1344-IV prohibition is imposed on payments to the budget in non-monetary form, including through mutual clearings, u se of promissory notes, barter transactions and 
entering onto accounts of financial counter-claims with financial in stitutions, except for operations 
related to the state debt of Ukraine and loans gr anted against state guarantees for acquisitions of 
foreign-made agricultural equipment and machinery, as well as settlements of the Ministry of Defence of Ukraine provided for by Article 98 of this Law,  and operations involving value-added tax payment 
at importation into the customs territory of Ukra ine of goods shipped in for direct production needs 
(not destined for further resale). 
Question 9 
Generally, we seek a clear commitment in the draft Working Party Report that the use of 
promissory notes is possible for both  domestic and foreign companies. 
Answer:
 
Ukraine takes note. Question 10 Paragraph 15-16: We understand that no specific list of prohibited investment activities exists in 
Ukraine.  Could further information on the natu re of prohibited investment nevertheless be 
provided? 
Answer:
 
The Law "On Investment Activity" (Article 4) pr ohibits the investment in objects (facilities) the 
creation and use of which do not meet sanitary and hy gienic, radiation, environmental, architectural 
and other rules established by Ukraine's legislati on, and which violate legally protected rights and 
interests of individuals, bodies corporate and the St ate.  No specific list of prohibited investment 
activities exists in Ukraine. 
- State Ownership and Privatization 
Question 11 
Paragraphs 17-22: With regard to Table 1(a), more information on the fulfilment of the state 
program on Privatization of Enterprises in 2003 should be provided.  Also, noting that the 
information in Table 1(b) concerns the early part of year 2003 (April), this information should 
be completed. WT/ACC/UKR/118 
Page 10  
 
 Answer:
 
The information stated in Paragraphs 18, 19 of th e Draft Working Party Report was provided to give a 
general idea as to the plans of privatization of st ate property of Ukraine.  Based on these plans and the 
procedures of privatization of state property in accordance with the procedure established by the Law 
of Ukraine No. 2163-XI "On Privatization of State Property" of 4 March 1992 privatized shall be a 
certain number of enterprises that change their ownership from the state to a different form. 
At present the Draft of the new revised State Priv atization Program for 2004-2 006 is being considered 
by the Verkhovna Rada of Ukraine.  The said draf t is aimed at further improvement of the processes 
of reforming ownership re lationships, and is to ensure impr ovement and intensification of the 
privatisation processes, to increase openness and tr ansparency of reforming of state property. 
Question 12 Could the list of state-owned enterprises not subj ect to privatization be transmitted, (approved 
by the law "On List of State Property Assets not Subject to Privatization" No 847-XIV of 7 July 
1999) and the criteria and principles upon which the aforementioned list is drawn up be made known. 
Answer:
 
The list of state-owned property not subject to priva tization runs to over 100 pages.  It is presently 
being analyzed and organized in a way that will f acilitate valuation of the economic significance of 
the items in the list.  The results  of this exercise will be submitted to Members of the Working Party 
as soon as it is completed. 
See also the answer to Question 14. 
Criteria and Principles  
According to Article 5 of the Law on Privati zation No. 3163-XII dated 4 May 1992, objects of 
national significance and public enterprises2 are not subject to privatization. The objects of national 
significance comprise property complexes of the ente rprises, their structural units involved into 
production of commodities (services) that have natio nal significance. National significance is attached 
to the following: 
- Objects that facilitate the state in performing its functions, provide de fence capacity of the 
state, and its economical independence; objects of the property right of Ukrainian people; 
property that represents the material basis of the sovereignty of Ukraine, in particular: 
                                                      
 2 Public Enterprises are created in the spheres of economy in which: 
 
- the law allows economic activity only for state owned enterprises; 
- the state consumes more than 50 per cent of the production of such enterprises; 
 no free competition of producers or consumers is possible; and - more then 50 per cent of the production is socially vital and the nature of this business makes this 
Enterprise unprofitable; 
- This Public Enterprises are created by the Cabinet of Ministers and are governed by the relevant 
ministry.  The Public Enterprises only do business in  the sphere(s) attributable to the ministry which 
governs such enterprises.  Public Enterprises are usually created to supply metallurgical, chemical, 
ship and rail building industries. 
  WT/ACC/UKR/118 
 Page 11 
 
 
 − property of the bodies of executive power and local governments; property of the Armed 
Forces of Ukraine (except property for wh ich the Law establishes privatization 
specificity), the Security Service of Ukraine,  the State Border Service of Ukraine, law 
enforcement and customs bodies; 
− subsoil, mineral resources of national significance, water resources and other objects of 
nature that are the objects of the property right of Ukrainian people; 
− property complexes of the enterprises on forest regeneration, forest nurseries, forest 
guards, forest districts and their units; 
− seed production stations, units and other organi zations involved into testing of plant 
species; 
− gold and currency funds and reserves, state material reserves; 
− emission system, property complexes of ente rprises and organizations involved into 
production and storage of banknotes and securities; 
− radio and television transmission centres as well as the objects providing communication 
to the bodies of legislative and executive power; 
− state radio and TV channels; 
− facilities for government and special communication; and 
− other objects of the state property right facilitating the performance of state functions. 
- Objects providing social development, preservation and increase of cultural and scientific 
potential, spiritual values, particularly: 
− objects of the National Space Agency of Ukraine at the Cabinet of Ministers of Ukraine; 
− archives; 
− property complexes of the institutions of the Academy of Sciences of Ukraine on the 
basic research directions; 
− objects of culture, art, architecture, memori al complexes, reserves, parks etc of the 
national significance; and 
− objects of education, physical culture, spor t and science financed from the state budget. 
- Objects which under state control guarantee protection of the population against negative 
consequences of unauthorized production, use or sale of unsafe products, services and unsafe 
productions, in particular: 
− property complexes of the enterprises for prod uction and repair of all types of weapons 
for the Armed Forces of Ukraine, th e Security services of Ukraine; 
− property complexes of the enterprises for production of narcotic, bacteriological, 
biological psychotropic, drastic chemical and poisoning means (except pharmacies); 
− property complexes of the enterprises involved in  the sphere of circulation of weapon and 
radioactive substances; 
− protection constructions of the civil defence; and 
− grounds, constructions, buildings and equipment used for burial of solid industrial and 
domestic wastes, livestock burials. 
- Objects that provide vital capacity of the state on the whole, particularly: 
− structural units of property complexes that provide permanent allocation and storage of 
the state reserves and mobilization of stocks; 
− penitentiary institutions; 
− property complexes of the enterprises of geological, cartographic, hydrometeorological 
services, services for environmental control; 
− objects of the state systems of standardization, metrology and certification of products; WT/ACC/UKR/118 
Page 12  
 
 − property complexes of the enterprises of aviation industry; 
− automobile roads except those owned by the en terprises up to their first ramifying outside 
the territory of the enterprises; 
− property complexes of the enterprises involved into production of the main railway 
machinery (electric locomotives,  diesel locomotives, railcars); 
− property complexes of railway transpor t enterprises and their infrastructure; 
− subway, city electrical transport; 
− property providing integrity of the unified power system of Ukraine and its dispatch 
(operational-technological) control, main  and interstate electric networks; 
− nuclear power stations, hydropower stati ons with dams providing water supply to 
consumers and hydraulic-engineering works, heat and power plants; 
− main oil and gas pipelines, main pipeline tran sport meeting the demands of the state on 
the whole, underground oil and gas storage facilities; 
− transport facilities of special purposes providing implementation of the works related to 
extinguishing fires and liquidation of the consequences of calamities; 
− objects of engineering infrastructure and amenities of cities including networks, 
constructions, equipment for supplying wate r, gas and heat to consumers and for 
discharging and purification of sewage; 
− property complexes of structural units of grain procurement enterprises that provide 
allocation and storage of mobilization reser ves as well as property of grain procurement 
enterprises stock holders of the State Jo int Stock Company "Bread of Ukraine"; 
− property complexes of the enterprises of salt industry; 
− water area of ports, moorages of all categories and purposes, hydrographic constructions, 
moorage embankments, protection structures and signalling systems, port systems of 
engineering infrastructure, automobile road s and railways up to their first ramifying 
outside the port territory, training and hydrographic fleet, property complexes of navigation inspections; 
− water reservoirs and channels of comple x use, joint melioration systems, hydro-
engineering protection facilities; 
− property complexes producing alcohol , vine and other liquors; and 
− crematoria and cemeteries. 
Question 13 
The questions recorded in paragraph 20 must be answered in the text.  We would be 
particularly interested in information on state owned enterprises in the agricultural sector.  There has been discussion of these issue in earli er Working Parties and we are surprised that 
this information is not included in the text. 
Answer:
 
Ukraine is developing the necessary information.  The following deals with agriculture and constitutes 
a partial response to the request. 
As of 1 January 2004, the competence of the Ministry of Agricultural Policy of Ukraine has covered 
over 1.5 thousand state enterprises, institutions a nd organizations including: 149 agribusinesses, 
204 industrial, 17 civil engineering companies,  70 designing and 52 research and development 
institutions and organizations, 138 educational establishments, 177 laboratories and inspections, 
28 standardization centres, 23 training and experime ntal farms and over 500 veterinary medicine 
organizations. 
Of the total number of state enterprises, 465 are incl uded in the List of State Ownership Objects Not 
Subject to Privatization, namely:  WT/ACC/UKR/118 
 Page 13 
 
 
 Regional (oblast) and district (rayon) chemic alixation and plants protection centres  53 
Regional veterinary oversight services (veterinary and sanitary stations, bi o-factories, veterinary 
hospitals) 40 
Linseed stations 8 
Research and developm ent institutions, sta ndardization bodies 33 
Agricultural enterprises (silk-mill farms, stud-farms, wineries) 110 
Food processing enterprises 131 
Enterprises of state JSC "Khlib Ukrayiny" 90 
 
Question 14 
The statement in paragraph 21 is inadequate.  That the list of firms prohibited from 
privatization runs to 100 pages is, in and of itself,  a telling statistic.  Ukraine should indicate the 
types of firms reserved, and discuss the operations of the major ones. 
Answer:  
Please see the Answer to Question 12. 
Question 15 
While we very much appreciate the information pr ovided, we look for additional description to 
help us conclude discussions in this area. 
Answer:  
Ukraine believes that this information will be provide d by the exercise referred  to in the answer to 
Question 12. 
- Pricing Policies Question 16 Paragraph 23 claims that pricing is free except fo r exceptions specified by law. We are aware of 
the following recent examples of increased state int ervention on pricing.  In November 2003, the 
Government of Ukraine signed an agreement with chemical plants according to which 
producers were obliged to sell fertilizers to farmers at lower than market prices.  On 
1 March 2004, the Government signed together with representatives of the biggest metallurgical plants a Memorandum on pricing.  Under th e memorandum the metal producers undertook to 
sell under a lowered price up to 18 per cent of their produce, (a share of the sales to internal 
market in 2003); the remaining 82 per cent could go for export.  On 3 March 2004, a similar document was signed by the Cabinet and plants mining iron ore works, coke and ferroalloys 
and supplies of fire-resistant materials.  These en terprises agreed to reduce prices only for the 
volume of products, necessary for metal pro ducers to satisfy the internal demand.  On 
31 March 2004, the government established a co mmission on pricing issues in the metal 
industry. 
Could you please clarify the state of play for these products, which are not included in table 2 as 
goods subject to state regulation of prices and tariffs. 
Answer:
 
The items mentioned above were not included in  Table 2 because all measures indicated were 
temporary and of short duration (mineral fertiliz ers – for 01.01.2004-01.07.2004; metallurgical, WT/ACC/UKR/118 
Page 14  
 
 mining production – for 01.04.2004-01.09.2004, by decl aring of the change of internal price) for the 
purpose of stabilization of functioning of certain indu stries (mining, metallurgical, mineral fertilizers) 
and directed toward softening of price shocks, caused by the increase in prices on world markets. 
Question 17 
Generally, we seek a clear commitment in the dr aft Working Party Report that Ukraine will 
fully respect WTO provisions upon accession.  For the sake of clarity, it would be useful to see a 
timetable indicating when inconsistent practic es related to the price and tariff control system 
will be eliminated. 
Answer:
 
[The representative of Ukraine confirmed that from the date of accession, the Government of Ukraine 
will apply price control measures in a WTO-consistent  fashion, and take account of the interests of 
exporting WTO Members as provided for in Article III.9 of the GATT 1994 and in Article VIII of the 
General Agreement on Trade in Services (GATS). He  also confirmed that Ukraine published notices 
of the goods and services subject to State price cont rols and would continue to do so after accession.] 
Question 18 
Paragraph 27:  We would appreciate more info rmation on the purpose and application of 
minimum prices to imports. 
Why and how are they applied, and at what point of sale? 
Answer:  
Ukraine does not apply any minimum prices to imports. Minimum prices are applied only to the vodka and li queur-vodka articles, realized on the internal 
consumer market of the Ukraine, and are not applie d in case of importing of such goods into Ukraine.  
These prices are used by the enterp rises of wholesale, retail trade, public nutrition, which have a 
license for the realization of this form of owner's activity, by producer enterprises regardless of the 
forms of property and by the physical persons, who achieve owner's activ ity in the wholesale and 
retail trade of alcoholic beverages.  The purpose of the application of minimum prices of the alcoholic 
articles is intensification of fight  with the illegal production and the tu rnover of alcoholic beverages in 
the territory of Ukraine. 
Question 19 
The list in Table 2 appears to cover a large number of products.  Could a more precise 
description of the coverage be provided, in term s of products and their alcoholic strength?  
Could the description make clear what alcoholic pr oducts are not subject to price control, to 
clarify the issue?  WT/ACC/UKR/118 
 Page 15 
 
 
 Answer:  
List of alcohols subject to minimum prices  
Code Description 
2208 20 - 
2208 90 78 00 Spirits obtained by distilling grape wine or grape marc (Armagnac, Grappa, Cognac, Brandy, others), 
Whiskies:  (Bourbon whiskey, Scotch whisky, Ma lt whisky, Blended whisky, Other), Rum and Taffia 
(Rum with a content of volatile s ubstances other than ethyl and meth yl alcohol equal to or exceeding 
225 grams per hectolitre of pure alcohol (with a 10% tolerance), Gin and Geneva, Vodka (of an 
alcoholic strength by volume of more or less 45.4%  vol), Liqueurs and Cordials, Other (Arrack, Plum, 
pear or cherry spirit, Spirits, (Calvados, Korn, Tequila, Mezcal). 
 
List of alcohols not subject of minimal prices  
Code Description 
2203 Beer made from malt 
2204 Wine of fresh grapes, including fortified wines 
2205 Vermouth and other wine of fresh grapes fla voured with plants or aromatic substances 
2206 Fermented beverages (for exam ple, cider, perry, mead) 
2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and 
other spirits, denatured, of any strength 
 
Minimum wholesale-tempering prices of the domestic and imported alcoholic beverages are 
determined for 1 litre of 100 per cent alcohol, on th e basis of the lowest wholesale price of the 
domestic production, the contract cost of imported goods, taxes and collections, and also taking into 
account the cost of container (glass bottle, souveni r bottle, the artistically designed dishes from the 
glass or the glazed ceramics, etc.). 
Minimum wholesale-tempering and retail prices in the implementation (sale) of domestic and 
imported vodka and liqueur-vodka artic les of different contained alc ohol boxed of different capacity 
are defined as the work of the corresponding affirmed  minimum prices, strength on the volume in the 
percentages and the capacity of contai ner in the litres, divided into 100. 
Example The calculation of the minimum retail price of vodka of domestic manufacture and imported, by 
fortress 40 per cent in the bottle by the capacity of 0.5 litres: 
         27.34 x 40 x 0.5 
 MPR =  __________________  = 5.47 hrivnyas                                100 where: 
− MRP - minimum retail price of one bottl e of concrete alcoholic beverage; 
− 27.34 - affirmed minimum retail price fo r 1 litre of domestic and imported vodka and 
liqueur-vodka articles in the recomputation of 100 per cent alcohol, hrn.; 
− 40 - fortress of vodka (per cent); and 
− 0.5 - capacity of bottle (litres). 
Question 20 
Could it be made clear as to whether these contro ls impact the valuation of these goods for tariff 
and tax purposes? WT/ACC/UKR/118 
Page 16  
 
 Answer:
 
The form of the governmental price control does no t influence application of customs duties, taxes 
and collections, whose payment is provided by  the current legislation of the Ukraine. 
- Competition Policy 
Question 21 
Paragraph 30:  When will the Telecommunication s Law be amended so as to allow for full 
competition in the telecommunications sector? 
Answer:  
In accordance with the Law of Ukraine No. 1280-IV on 18 November 2003 "On 
Telecommunications", telecommunications networks  may be owned, operated and serviced by any 
business entity - natural person (registered business pers on) or body corporate which are resident in 
Ukraine, regardless of ownership type.  Thus, the stated Law has established complete competition in 
the communications industry. 
Question 22 
Per paragraph 31:  As noted in the text, we need  more information on Ukraine's definition of 
"natural monopolies" and on the wo rk of the Antimonopoly Committee. 
Answer:  
Legal, economic and organizationa l foundations of the state regulation of natural monopoly subjects 
in Ukraine are identified in the Law of Ukra ine "On Natural Monopolies" of 20 April 2000 
No. 1682- ІІІ.  This Law is aimed at ensuring effective operation of markets in the state of a natural 
monopoly, based on balancing public interests, natural monopoly subjects and consumers of their 
products. 
In accordance with Article 1 of the Law, a natu ral monopoly is defined as a state of a commodity 
market in which meeting the demand of the mark et is more effective on condition of absence of 
competition due to certain technological specificitie s of production (in connection with economies of 
scale), while goods (services) produced by natural monopolies subjects may not have close 
substitutes. 
Pursuant to Article 5 of the La w of Ukraine "On Natural Monopolies", the following areas of business 
activity are natural monopoly subjects: 
− oil and oil products transportation through pipelines; 
− natural and oil gas transportation through pipelines and its distribution; 
− transportation of other substances through pipelines; 
− electric energy transmission and distribution; 
− use of rail tracks, dispatcher services, railroad terminals and other infrastructural outlets 
supporting railroad traffic; 
− air traffic administration; 
− centralized water supply and collection; and 
− centralized heating energy supply. 
The Antimonopoly Committee of Ukraine is a state authority whose operation is aimed at ensuring 
state protection of competition in business activity.  The Committee is, in the first instance, tasked  WT/ACC/UKR/118 
 Page 17 
 
 
 with participation in the development of comp etition policy and implementation of which, among 
other things, includes the following: 
− performance of state oversight of the observa nce of the law governing the protection of 
economic competition based on the principles of  equality of business entities' before the 
law and the priority of consumers rights and the prevention, detection and termination of 
violations of laws regul ating economic competition; 
− oversight over concentration and coordi nated actions of business entities and over 
regulation of prices (tariffs) of goods produced (distributed) by natural monopoly 
subjects; 
− promotion of fair competition; and 
− methodological support to the application of laws underlying the protection of economic 
competition. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 23 
Paragraph 35 is internally inconsistent.  Clea rly if local governments don't have financial 
independence and the local administration is appointed from Kiev, they couldn't actually 
exercise "extensive powers" of local self government .  We are seeking information in the text on 
what localities can do that might affect trade, e. g., taxes, subsidies, restrictions on goods, etc. 
Answer:  
Indeed, local self-government agencies may not exerci se "extensive powers" to a full extent.  Powers 
delegated to local self-governments are determined by the Law of Ukraine On Local Self-Government 
of 21 May 1997 No. 280/97.  According to the Cons titution of Ukraine, local  self-governments shall, 
within the scope of their competence as defined by the law, make decisions which shall be binding in 
their respective jurisdictions. In addition to th at, local self-governments exercising their powers of 
executive power authorities report to respective s uperior executive power agencies.  In accordance 
with Article 26 of Chapter II "Organizational and Legal Framework of Local Self-Government" of the 
Law of Ukraine On Local Self-Government, local self-government bodies may independently set the 
amounts of local taxes and fees and levels of their ra tes within the limits pres cribed by the law.  The 
list of local taxes and fees is determined by Artic le 15 of the Law of Ukraine On Taxation System of 
25 June 1991 No. 1251- ХІІ.  The mechanism of local taxes and fees collection is implemented 
exclusively within the range of cap limits of rat es as established under applicable laws of Ukraine. 
Local self-government bodies may also make autonom ous decisions with respect to granting, in 
compliance with applicable laws, of local taxes a nd fees benefits (preferen tial conditions for using 
space and premises of shops, studios, laboratories u sed by educational establishments, culture, sport 
and social facilities, etc. are provided).  With respect  to provision of subsidies and setting restrictions 
to certain types of products, please be advised that the raised questions are not outlined in the Law of 
Ukraine On Local Self-government.  Furthermore,  the following responsibilities are referred the 
competence of executive bodies of village, township  and city councils under Article 35 of Chapter II 
of the said Law: 
- inherent (self-government) powers: 
− conclusion and enforcement, according to the due  procedure, of agreements entered into 
with foreign counterparts providing for acquisition and distribution of products, 
performance of works and provision of services; 
− promotion of foreign economic ties of enterp rises, institutions and organizations located 
within respective jurisdictions irrespectiv e of their ownership form by means of WT/ACC/UKR/118 
Page 18  
 
 development of border-adjacent commerce, regional infrastructure, regulatory and 
methodological and information support; and 
− furthering, subject to requirements of applicab le laws, of foundation of joint ventures with 
foreign counterparts engaged in production and social infrastructure, and of other 
facilities, foreign investment attraction and jobs creation; 
- delegated powers: 
− organization and oversi ght of border-adjacent and coastal commerce; 
− creation of conditions for due functioning of  customs agencies, facilitation of their 
operation; and 
− ensuring, within respective ju risdiction and within the sc ope of assigned responsibility, 
implementation of Ukraine's international commitments. 
Question 24 
Paragraph 36: As we noted in October, we seek ad ditional information on the right of appeal as 
it relates to issues covered by the WTO.  Where do appeals from administrative rulings in the 
areas of trade in goods, services, and intellectual property go for judicial review?  Which courts 
are recognized? 
Answer:
 
Under Article 55 of the Constitution of Ukraine, each  and every citizen of Ukraine has the right of 
recourse to court and each citizen has a guaranteed right  to appeal in court any decisions, acts or lack 
of action of state power authorities and local self-governments, or of officials.  Alongside that, in the 
event that a dispute arises between an impor ter (exporter) and an official, appeals against 
administrative decisions applying to trade in go ods and services and to inte llectual property rights 
protection may be lodged to a superior official .  In case of dissatisfaction or disagreement, a 
complaining person may seek remedy from an author ized body regulating the given area of business 
activity.  In case of lack of action on the side of the superior authorized agency, the complaining 
person shall have the right to bring the compla int to the local commercial court which include 
commercial courts of the Autonomous Republic of Crimea, commercial courts of oblasts (provinces), 
cities of Kyiv and Sevastopol (Part 2 of Article 21 of the Law of Ukraine On Judiciary) which shall consider cases arising from commercial legal relations, as well as other cases referred to their jurisdiction by the law of procedure (Part 3 of Article 22 of the Law of Ukraine On Judiciary).  The 
next instance in the commercial courts hierarchy is commercial courts of appeal formed in appellate 
districts in compliance with the Decree of the President of Ukraine (Part 3 of Article 25 of the Law of Ukraine).  The superior specialized court in the commercial courts system is the Higher Commercial 
Court (Part 1 of Article 38 of the Law) whose decisions are final and binding. 
Question 25 
Paragraphs 39 and 40 need attention to address in  a systematic way what a trader must do to 
appeal an administrative ruling in the area of , e.g., customs valuation and classification, TBT, 
SPS, IPR, licensing, fees, services licenses, etc.   The current text is not specific enough. 
Answer:
 
The challenging of the officials' decisions in Ukra ine is taking place in legal form according to 
Article 55 of Constitution of Ukraine.  The appe als in such areas as TBT, SPS, IPR, licensing, 
payments and others are subm itted to the commercial court.  WT/ACC/UKR/118 
 Page 19 
 
 
 Question 26 
Commitment language for this section, on the righ t of appeal, on the relationship of central to 
sub-central authority in the area of trade in goods and services, and on what the central 
government is prepared to do to ensure uniform application of WTO provisions within Ukraine. 
Answer:  
[The representative of Ukraine stated that, fro m the date of accession, Ukraine would implement 
Article X of the GATT 1994 and the other provisions of  the WTO Agreements related to the right of 
appeal.  The Working Party to ok note of these commitments.] 
POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 
Question 27 
Paragraph 41 indicates that the law "On State Registration of Legal Entities and Natural 
Persons engaged in Entrepreneurial Activity  of 15 March 2003 would enter into force on 
1 July 2004.  Please confirm that a translation of this law has been provided to the Working Party.  If not, please provide it. 
Answer:
 
The law "On State Registration of Legal Entities an d Natural Persons engage d in Entrepreneurial 
Activity of 15 March 2003 entered into force on 1 July 2004. 
A translation of this Law has been  submitted to the WTO Secretariat. 
Question 28 
Paragraph 42:  Does Ukraine envisage a gradua l reduction of the number of goods and services-
related activities subject to licensing? 
Answer:  
Currently Ukraine does not envisage reduction of th e number of goods and services-related activities 
subject to licensing.  Activity licenses are for regulatory reasons and do not act as trade barriers restricting access to market.  According to La w No. 1775-III of 2000, activity licensing may not be 
used for the restriction of competition in perform ing economic activity.  Licensing of the goods and 
services-related activities referenced in Paragraph 42 is required to meet a legitimate objectives. 
Activity licensing is required for activities that ma y endanger human, animal, and plant life and safety 
of citizens and may cause damage to the environm ent.  In addition, activity licenses may be also 
required to ensure the soundness of the financia l system, protect public morals, and guarantee 
essential security interests. 
Question 29 Paragraph 42:  As regards the li st of goods-related activities subj ect to licensing, the indication 
of who is responsible for establishing, reviewing and modifying the list of these activities would be useful. WT/ACC/UKR/118 
Page 20  
 
 Answer:
 
Suggestions regarding development, consideration and introduction of changes to the list of types of 
activities, which are subject to licensing, are made by the Cabinet of Ministers of Ukraine. 
Verkhovna Rada of Ukraine approves suggestions of the Cabinet of Ministers by means of passing 
corresponding Laws or introduction of corres ponding amendments and addenda to them. 
Question 30 The last sentence of paragraph 42 says that "incomplete or incorrect applications would be 
refused".   Please indicated if the possibility to complete such an application and to submit it 
again is foreseen? 
Answer:
 
It is possible to resubmit incomplete or incorr ect applications after completion or corrections. 
Question 31 
In the case of minor errors withou t fraudulent intent or gross neg ligence is the incomplete or 
incorrect application also refused?  Please specify the relevant articles of the law and that in such a case of minor errors no penalty greater that necessary to serve merely as a warning is 
imposed consistently with Article 1.7 LIC. 
Answer:
 
In accordance with Article 16 of the Law on Foreign Economic Activities No. 959-XII of 
16 April 1991, minor errors do not form the basis for rejecting license application. No penalty is imposed in case of minor errors. 
Question 32 
Paragraph 43:  Please specify what you mean by "specialized enterprises" in the case of licenses 
granted to import and export ethyl alcohol, cognac and fruit spirits. 
Answer:
 
Import and export of ethyl spirits and fruit spirits, r ectified grape ethyl spirits, rectified fruit ethyl 
spirits, may only be carried out in the presence of licenses only by state enterprises or organizations, 
specially authorized for this by the Cabinet of Ministers of Ukraine, except for wholesale trade in 
ethyl spirits for medical and veterinary purposes,  which may be exercised in the presence of the 
license by health protection institutions and veterina ry supply enterprises regardless of the form of 
ownership. 
The import or export of cognac spirits only is ex ercised in the presence of licenses by specialized 
cognac producing enterprises, possessing required pr ovisions of oak vessels for ripening of cognac 
alcohol, qualified experts and own production fac ilities for production of cognac alcohol and cognac. 
Question 33 
Are they only national enterpri ses or also foreign enterprises?  WT/ACC/UKR/118 
 Page 21 
 
 
 Answer:  
Foreign enterprises are not allowed to import or export cognac spirits. 
Question 34 
Please specify the criteria applied in both  cases when granting an authorization. 
Answer:  
The Ministry of Economy and European Integration is the Executive Body Authorized by the Cabinet 
of Ministers to issue a right to import and export cognac spirits. Licenses are is sued with the consent 
by State Tax Administration of Ukraine. License s for importing and exporting of cognac spirits are 
issued for a term of five years.  The fees for su ch licenses are collected annually and transferred to the 
State Budget of Ukraine:  importing cognac sp irits–UAH 170,000; exporting - cognac spirits 
UAH 85,000. 
According to Article 15 of Law No. 481/95, the licen se shall be issued upon the application of the 
subject of entrepreneurial activity, attached with a copy of the certificate on state registration of the 
subject of entrepreneurial activity, notarized or certified by the body that issued the document's 
original and its copy, that proves special authority given by the Cabinet of Ministers of Ukraine to a 
state enterprise or organization for conducting import, export of Cognac alcohol, signed by the head 
of an enterprise, sealed.  Demanding documents differe nt to those specified above is prohibited.  The 
documents, specified in this Law shall be submitted in one specimen in copies notarized or certified 
by the body that issued the doc ument's original.  The application for obtaining the license and the 
documents, determined by this Law sh all be submitted by the authorized person of the applicant, or 
send by means of the letter of credence.  In case of personal submission of the application for 
obtaining the license and the documents attached ther eto, they shall be accepted according to the list, 
the copy of which shall be provided to the app licant with the mark on the date of accepting the 
application and other documents, a nd the signature of the person that accepted these documents.  The 
license or the decision on denial to issue the license shall be provided to the applicant not later than 
ten calendar days from the day of receiving the afor ementioned documents.  The decision on denial to 
issue the license must contain the reason for the denial. 
Question 35 
What is the rationale to exempt from the expo rt license fee enterprises that sell abroad their 
own production of spirits? 
Answer:  
Today in practice indicated type of privileges is not applied. Question 36  Paragraph 44:  Please explain for which reason the fee for state registration of medicines is two 
times higher than the fee for registration and re- registration of radioactive medicine, diagnostic 
means etc. 
Please explain why the fee for registration of medici ne is 40 times higher (€ 1,000) than for the 
registration of medicine in bulk (€ 25). WT/ACC/UKR/118 
Page 22  
 
 Answer:
 
The amount of payments for state registration (re-regi stration) of pharmaceuticals is established by the 
regulation of Cabinet of Ministers of Ukraine as of 13 September 2000 No. 1422 "On Approval of the 
Procedure of State Registration (Re-registration)  of Pharmaceutical and Size of Duty for State 
Registration (Re-Registration) of Pharmaceutical".   These payments are equal for all subjects of 
entrepreneurial activity (residents and non-residents) and fully directed to the State budget.  Fees are 
applied equally on imported and dom estic pharmaceuticals.  Bulk pharmaceuticals, regardless of 
origin, are charged the same amount. 
For ready-made pharmaceuticals the duty is defined to be the equivalent of € 1,000.  The amount of 
duty for radioactive and diagnosis-m aking pharmaceuticals is defined in  equivalent of € 500.  With 
respect to raw materials (substances, auxiliary subs tance, pharmaceuticals in bulk) the duty for their 
registration is determined in equivalent of € 25. 
The State registration (re-registration) of pharmaceutical is made at the Ministry of Health of Ukraine 
on the basis of expertise of pharmaceuticals at the State Pharmacological Centre of the Ministry of 
Health of Ukraine and the State Service of Phar maceuticals and Products of Medical Designation. The 
aforementioned registration duty does not include the cost of expertise of pharmaceutical in State 
pharmacological centre of Ministry of Health of Uk raine, as well as cost of additional expertise in 
specialized institutions, defined by the Ministry of Health of Ukraine, which payment is made by the 
terms of agreement between the applicant and the specialized expert institution. 
Question 37 
Paragraph 46:  Please indicate the level of the fee for licenses issued for the production, 
wholesale and retail of pesticides and agrochemi cals and the fee for prior registration of these 
products. 
Answer:  
The fee for issuing a license to produce pesticides , or engage in retail and wholesale trade in 
pesticides and agrochemicals equals UAH 255, as de termined by the Resolution of the Cabinet of 
Ministers of Ukraine "On Validity Term of Li cense for Conducting Specific Types of Economic 
Activity, Amount and Procedure for Paying for the License Registration" No. 1755 of 29 November 2000. 
Amount of payments for expertise, state regi stration and re-registration of pesticides and 
agrochemicals is established by Order of the Ministry of Environmental Protection dated 
22 March 2001 No. 116 "On amount of payment for expe rtise, state registration and re-registration of 
pesticides and agrochemicals" (see Table 1).  WT/ACC/UKR/118 
 Page 23 
 
 
 Table 1 - Amount of payment for experti se, state registration and re-registration  
of pesticides and agrochemicals in Ukraine  
Amount of payment in UAH 
for Chemicals of foreign and 
domestic production No. Types of works 
registration expertise 
State registration of pesticides and agrochemicals (except for bio-chemicals and growth regulators)  
- for a period of 5 years  16,500 5,500 
- for a period of 2 years  6,600 5,500 1  
- for a period of 1 year  3,300 5,500 
State registration of chemicals for combating home insects and rodents  
- for a period of 5 years  8,250  2,750  
- for a period of 2 years  3,300  2,750  2  
- for a period of 1 year  1,650  2,750  
State registration of bio-chemic als and growth regulators  
- for a period of 5 years  5,500  2,750  
- for a period of 2 years  2,750  2,750  3  
- for a period of 1 year  1,375  2,750  
Change of period for state registra tion of pesticides and agrochemicals (except for bio-chemicals and growth 
regulators)  
- up to 5 years 13,200  1,650  4  
- for 1 year period 3,300  1,650  
Change of period for state registration of ch emicals for combating home insects and rodents  
- up to 5 years  6,050  1,650  5  
- for 1 year period  1,650  1,650  
Change of period for state registration of bio-chemicals and growth regulators 
- up to 5 years  4,125  1,650  6  
- for 1 year period  1,375  1,650  
State registration of previously registered chemicals  
1. Expansion of sphere of application up to 5 specimen or hazardous objects:  
- for a period of 5 years  2,750 1,650  
- for a period of 2 years  1,650 1,650  
- for a period of 1 year  1,100 1,650  
2. Expansion of sphere of applicatio n of a chemical up to more than fi ve specimen or hazardous objects:  
- for a period of 5 years  5,500  1,650  
- for a period of 2 years  2,750  1,650  
- for a period of 1 year  1,650  1,650  
3. Change of chemical's directions for use:  
- for a period of 5 years  3,300  1,650  
- for a period of 2 years  1,650  1,650  
- for a period of 1 year  1,100  1,650  
4. Change of chemical's expenditure norm:  
- for a period of 5 years  -  1,650  
- for a period of 2 years  -  1,650  
- for a period of 1 year  -  1,650  
5. Minor change in chemical's preparative form:  
- for a period of 5 years  -  1,650  
- for a period of 2 years  -  1,650  7  
- for a period of 1 year  -  1,650  
State re-registration of pesticides and agrochemicals (except for bio-chemicals and growth regulators)  
- for a period of 5 years  8,250  1,650  
- for a period of 2 years  3,300  1,650  8  
- for a period of 1 year  1,650  1,650  
State re-registration of chemicals for combating home insects and rodents 
- for a period of 5 years  4,125  1,650  
- for a period of 2 years  1,650  1,650  9  
- for a period of 1 year  825  1,650  
State re-registration of bio-ch emicals and growth regulators  
- for a period of 5 years  2,750  1,650  
- for a period of 2 years  1,650  1,650  10  
- for a period of 1 year  550  1,650  WT/ACC/UKR/118 
Page 24  
 
  
At the same time, in accord ance with the Law of Ukraine on 18 March 2004 No.1628-IV "On 
Amendments to some laws of Ukraine regarding pesticides and agrochemicals", period of state 
registration and re-registration of pesticides and ag rochemicals extended from five up to ten years. 
A. IMPORT REGULATION 
- Registration requirements for engaging in importing 
Question 38 This text in this section forms a good basis for further work, but we believe that the description 
of Ukraine's activity licensing will need elaboration, particularly in the area of WTO justification for the measures.  We are interest ed primarily in a description of the requirements 
to obtain permission to import and to expo rt in the areas of al cohol, pharmaceuticals, 
agricultural chemicals, narcotics, agro chemicals,  and optical media, and to distinguish these 
requirements from those for distribution of the products in Ukraine. 
Answer:
 
The full and detailed information of the requirement s to obtain permission for the right to import and 
to export in the areas of alcohol , pharmaceuticals, narcotics, agro  chemicals and optical media was 
provided in the Annex 6 of the document WT/ACC/UKR/110/Add.2. 
Question 39 
Paragraph 41:  Does the statement that "Forei gn economic activity was not subject to any 
special registration requirements" mean that im portation and exportation are not explicitly 
listed in the scope of business for registration?  Please clarify. 
Answer:  
In order to import or export, a business must, when registering, explicitly state importation/ 
exportation or trade in the scope of business activities. 
Question 40 
Is it possible for Ukraine to confirm that there are no restrictions on the right of individuals or 
firms to import or export other than those lis ted for the goods needing activity licenses for 
trade? 
Answer:  
Ukraine confirms that there are no restrictions on the right of indivi duals or firms to import or export 
other than those listed for goods needing activity licenses. 
Question 41 
Paragraph 43:  It appears that Ukraine uses its ac tivity licensing for importation of alcohol to 
restrict importation, and to favour domestic pr oducers and distributors in this activity.  This 
would appear to be inconsistent with Article XI.  WT/ACC/UKR/118 
 Page 25 
 
 
 Answer:  
Ukraine believes that its activity licensing for im portation of alcoholic beverages do not restrict 
importation of alcoholic products. 
Ukraine does not apply any restrictions to alcoholic beverages. The right to import and export of alcoholic beverages may be carried out by subjects of 
entrepreneurial activity of any form of  ownership in the presence of a license. 
The right to import and export of ethyl spirits and fruit spirits, rectified grape ethyl spirits, rectified 
fruit ethyl spirits, may only be carried out in th e presence of licenses only by state enterprises or 
organizations, specially authorized for this by the Cabinet of Ministers of Ukraine. 
The right to import or export of cognac spirits only is exercised in the presence of licenses by 
specialized cognac producing enterprises. 
Question 42 
Could Ukraine clarify the specific alcohol and tobacco goods covered by its requirements and 
outline how a license to import or export is obtained for alcoholic beverages and tobacco 
products other than alcoholic spirits? 
Answer:
 
The Law of Ukraine "On State Regulation of Prod uction and Turnover of Ethyl Alcohol, Cognac and 
Fruit Alcohol, Alcoholic Beverages and T obacco Products" No. 481/95 dated 19 December 1995 
defines alcoholic beverages and tobacco products as follows: 
− Alcoholic beverages: products obtained by al coholic fermentation of materials containing 
sugar or produced on the basis of food alcohol with an ethyl alcohol content higher than 1.2 per cent of volumetric units, related to commodity groups of the Harmonized 
Commodity Description and Coding System under codes 2204, 2205, 2206, 2208; and 
− Tobacco products:  cigarettes, cigarettes w ith a cardboard holder, cigars, cigarillos and 
also pipe tobacco, snuff, chewing tobacco  and other products from tobacco or its 
substitutes, which influence the physiolo gy of a person while consuming them. 
The Ministry of Economy and European Integration is the Executive Body Authorized by the Cabinet 
of Ministers to issue a right to import and export alcoholic beverages and tobacco products.  Licenses 
are issued with the consent by State Tax Administra tion of Ukraine.  Licenses for the right to import 
and export alcoholic beverages and tobacco produc ts are issued for a term of five years. 
According to Article 15 of Law No. 481/95, the licen se shall be issued upon the application of the 
subject of entrepreneurial activity, attached with a copy of the certificate on state registration of the 
subject of entrepreneurial activity, notarized or certified by the body that issued the document's 
original.  Demanding documents different to those specified above is prohibited.  The documents, 
specified in this Law shall be submitted in one sp ecimen in copies notarized or certified by the body 
that issued the document's original.  The appli cation for obtaining the license and the documents, 
determined by this Law shall be submitted by the authorized person of the applicant, or send by 
means of the letter of credence.  In case of pers onal submission of the application for obtaining the 
license and the documents attached thereto, they sh all be accepted according to the list, the copy of 
which shall be provided to the applicant with th e mark on the date of accepting the application and 
other documents, and the signature of the person that accepted these documents.  The license or the 
decision on denial to issue the license shall be provi ded to the applicant not later than ten calendar WT/ACC/UKR/118 
Page 26  
 
 days from the day of receiving the aforementioned documents.  The decision on denial to issue the 
license must contain the reason for the denial. 
Decision on refusal to issue the license can be made, if: 
− presented documents do not meet the requiremen ts of acting legislation of Ukraine; and 
− the applicant violates legislation of Ukraine in the sphere of foreign economic activity; 
and consent for issuance of the license is not  given by the State tax administration of 
Ukraine. 
Question 43 
Is the right to be the importer of record for these products conditioned on any requirements for 
domestic investment? 
Answer:
 
Article 15 of Law No. 481/95 states that the right to import and export of alcoholic beverages and 
tobacco products may be carried out by subjects of entrepreneurial activity of any form of ownership 
in the presence of a license.  Thus, there are no requirements for any type of domestic investment. 
Question 44 
What fees are charged for the licences? 
Answer:  
The fees for such licenses are coll ected annually and transferred to the State Budget of Ukraine: 
− importing alcoholic beverages and tobacco products – UAH 250,000; and 
− exporting alcoholic beverages a nd tobacco products – UAH 3,000. 
Question 45 
Please distinguish between alcoholic beverage products and bulk spirits. 
Answer:  
Alcoholic beverage is the type of pre-packed output  (for example in bottles), while the bulk spirits is 
the form of transportation (delivery) of un-prepacked  output (raw stock; for example in cistern, pipe). 
Please see also the answer to Question 32. 
Question 46 
Paragraph 44:  Please clarify the fee structure fo r registering pharmaceuticals.  It is not clear 
what is being charged.  Are these fees applied equally for imported and domestic pharmaceuticals, e.g., there seems to be a discount for domestic bulk pharmaceuticals? 
Answer:
 
Please see the answer to Question 36.  WT/ACC/UKR/118 
 Page 27 
 
 
 Question 47 
Paragraph 46:  Licensing: A new law No.2070 passed 18 March 2004 by the Rada authorizes 
imports into Ukraine of unregistered pestic ides and agricultural chemicals for scientific 
purposes, and also for production of products, which are intended for further export.  The law 
also envisages separation of the competence of organs of the executive branch of government in 
the sphere of handling pesticides and agricultura l chemicals, and seems to address the issue of 
duplication of certification and licensing of pesticides and agricultural chemicals.  The law is also supposed to harmonize legislation in the sphere of pesticides and agricultural chemicals 
with the legislation of the European Union. 
Could Ukraine provide further information on this law? 
Answer:
 
The English translation of the Law of Ukraine "On Amendments to Some Laws of Ukraine regarding 
Pesticides and Agricultural Chemicals" No.1628-IV adopted 18 March 2004 has been submitted to the 
WTO Secretariat. 
- Ordinary customs duties 
Question 48 
Paragraph 49:  We understand that Ukraine intends  to switch to HS 2002 upon finalisation of 
all bilateral deals in the framework of its WT O accession.  Does Ukraine have any specific date 
in mind? 
Answer:  
Ukraine's consolidated tariff offe r was sent to the WTO Secretariat and is based on HS 96.  All 
bilateral negotiations are conducted also on the base of HS 96, according to results of which more 
than 20 bilateral protocols were signed.  Taking into consideration these facts Ukraine intends to 
switch to HS 2002 upon accession to the WTO. 
Question 49 
Paragraph 49:  this paragraph should be completed with information regarding the 
introduction of HS 2002, the use as well as the level of preferential duties (GSP) and a reference 
to the schedule of commitments. 
Answer:  
Ukraine does not operate a GSP.  Please also see the answers to Questions 48, 50 and 53. 
Question 50 
Language proposed as regards the schedule of commitments:  Ukraine undertook bilateral 
market access negotiations on goods with members of the Working Party. The results of these 
negotiations are contained in the Schedule of Concessions and Commitments on Goods. 
Answer:  
Ukraine agrees on this proposition. WT/ACC/UKR/118 
Page 28  
 
 Question 51 
Correction:  The representative of Ukraine said that customs duties were levied on the basis of 
the Law "On the Customs Tariff (not Code) of Ukraine" No. 2371-III of 5 April 2001, as amended. 
Answer:
 
Ukraine confirms this correction. 
Question 52 
Added information:  As of July 2001, tariff rates are covered by the above-mentioned Law 
which consolidates all previous tariff regulation and reserves tariff changes exclusively to the 
Rada. 
Answer:  
Ukraine confirms this information. 
Question 53 
Ukraine should provide additional information fo r this section on any preferential application 
of tariffs, e.g., a GSP system including the legal  citation. We also seek information on any less-
than-MFN treatment, e.g., are higher duties applie d, and a list of WTO me mbers subject to this 
treatment. 
Answer:  
Ukraine does not operate a GSP system. Common (non-preferential) import duty rates of th e Single Customs Tariff of Ukraine which up to 
2-10 times higher than MFN (preferential) rates are applied to goods originating from all countries 
listed below: 
Albania, Angola, Antigua and Barbuda, Bahrain, Kingdom of Bangladesh, Barbados, Belize, Benin, 
Bolivia, Botswana, Brunei Darussalam, Burkina F aso, Burundi, Cameroon, Central African Republic, 
Chad, Colombia, Congo, Costa Rica, Côte d'Ivoire , Democratic Republic of the Congo, Djibouti, 
Dominica, Ecuador, El Salvador, Fiji, Gabon, Th e Gambia, Ghana, Grenad a, Guatemala, Guinea 
Bissau, Guyana, Haiti, Honduras, Iceland, Jamaica, Kenya, Kuwait, Lesotho, Madagascar, Malawi, 
Maldives, Mali, Mauritania, Mauritius, Mozambiqu e, Myanmar, Namibia, Nepal, New Zealand, 
Nicaragua, Niger, Nigeria, Oman, Pakistan, Panama , Papua New Guinea, Paraguay, Peru, Philippines, 
Qatar, Rwanda, Saint Kitts and Nevis, Saint Lucia,  Saint Vincent & the Grenadines, Senegal, Sierra 
Leone, Singapore, Solomon Islands, Suriname, Swaz iland, Tanzania, Thailand, Togo, Trinidad and 
Tobago, Uganda, Uruguay, Venezuela, Zambia, Zimbabwe. 
Countries with which Ukraine has concluded free tr ade agreements providing for the exemption from 
the import duty on goods in accordance with terms and conditions specified by these agreements: Azerbaijan, Armenia, Belarus, Georgia, Kazakhs tan, Moldova, Russia, Tajikistan, Turkmenistan, 
Uzbekistan, Macedonia. 
See also Paragraph 49 of WT/ACC/SPEC/UKR/5.  WT/ACC/UKR/118 
 Page 29 
 
 
 - Tariff rate quotas, tariff exemptions 
Question 54 Paragraph 52:  Information normally provided incl udes a listing of general exemptions, e.g., for 
imports by religious organizations, and inform ation on any tariff exemptions for specific 
industries or enterprises. 
Answer:
 
Please, see Annex 1. 
Question 55 
Paragraphs 53 and 54:  We need answers to these questions. 
Answer:  
The Regulation on Allocation of Tariff Rate Quota on Raw Cane Sugar Importation Into Ukraine was 
sent to the WTO Secretariat (WT/ACC/UKR/110 /Add.1 from 24 October 2002, internal number 
WTO - 02-5866, Annex 10). 
The main principle of allocation:  80 per cent of total amount of quota is given for the traditional 
suppliers and 20 per cent - for new suppliers.  The or der of allocation is transparent and supported by 
the most countries supplying these products to the world markets. 
On 22 May 2003, the Verkhovna Rada of Ukraine passed two Laws about  import of raw cane sugar to 
Ukraine. One Law provides import of raw cane sugar in the amount of 200,000 tons on custom duty € 60 per ton.  Another Law provides 360,000 tons more on custom duty € 6 per ton.  That is the 
general volume of tariff quota on raw cane sugar in 2003 was 560,000 tons. 
The Law of Ukraine "On State Budget For 2004" dete rmines the import to Ukraine of raw cane sugar 
in the amount of 125,000 tons (on tariff quota) on custom duty € 30 per ton till 15 September 2004. 
The mechanism for allocating the quot a is carried out through auctions. 
The following entities are engaged in the application of the regime of tariff quotas in Ukraine for the 
import of raw sugar materials made of sugar cane: 
- Interdepartmental Committee on Organization of  Auction for Realization of Quotas for 
Import Raw Sugar Material Made of Sugar Ca ne in 2003 (the "Committee") consisting of 
Members from relevant ministries and state bodies; 
- Authorized commodity exchanges – where auctions are organized; 
- Minister of Economy and on European integration issues import licenses on the basis of 
application, certificate of winning auction, and reference from State Treasury on full payment of acquired lots; and 
- State Customs Service reports on monthly basis to the Ministry of Economy and on European 
Integration and to the Ministry of Agrarian Po licy on volume of import of raw sugar material 
made of sugar cane by licensed entities. 
The Committee and authorized commo dity exchanges publish seven days ahead of auction in two 
national newspapers the information on the quantity of lots offered for sale, terms for admission of WT/ACC/UKR/118 
Page 30  
 
 applicants, period and place of auction. Applicants , to be considered, should submit, no later three 
days before the date of auction, to the Committee the following documents: 
− Application for particip ation in auction; and 
− Notarized copy of certificate of registra tion as legal entities or natural persons as 
entrepreneurs. 
Applicants should transfer to special account at the State Treasury advance payment no less that the 
minimum price of one lot (€ 50,000).  Applicants in the process of bankruptcy or who have not met 
the aforementioned requirements will not be adm itted to the auction.  The Committee announces one 
day before the auction the list of participants and two hours before the auction the amount of advance 
payment by each participant. Participants must pa y fee for accreditation to the authorized commodity 
exchange.  Participants are also prohibited from co lluding.  The authorized commodity exchange is 
prohibited from disclosing commercial secrets or confidential information; providing favourable 
conditions to certain participant(s); or restricting co mpetition.  It is also obliged to provide reliable 
information to the auction participants. 
At least two participants must participate in order for an auction to be valid.  The auctioneer conducts 
bidding in accordance with the list of lots offered for the auction.  The auction starts by declaration by 
the auctioneer of starting price of the lot, which equals minimum price of a lot.  Bidding is conducted 
by raising identification cards.  Bidding for each lo t ends when no bidder raises identification card for 
next price. 
No applicant is authorized to buy over 50 per cent of the established volume for importation.  Within 
three days after closure of trading session, winners mu st transfer difference in price of purchased lots 
exceeding the advance payment to the State Treasury  special account.  At the end of trading session, 
the Committee issue certificate to the winner for use to apply for import license at the Ministry of 
Economy and European Integration.  Winners of auction bids must also pay to the authorized 
commodity exchange an auction duty in the am ount and within the period established by the 
authorized commodity exchange w ith the approval of the Committee. 
Resale of purchased lots is not allowed. Licenses are valid until 15 September of the relevant year. 
Question 56 
Paragraph 54: Added information:  In the 2004 budget, the government set a quota for raw 
cane sugar imports (with a specific import duty of € 30 per ton) effective until 15 September 2004. Could Ukraine confirm that this is a tari ff rate quota with no quantitative restriction? 
Answer:
 
Yes, this is a tariff rate quota with no quantitative restriction. 
Also see the answer to Question 55. 
Question 57 
We take note that this section is incomple te and look forward to the revised version. 
Please ensure that the revised section includes a full description of the tariff rate quota for raw 
cane sugar and the confirmation that sugar is the only product subject to a tariff rate quota.  WT/ACC/UKR/118 
 Page 31 
 
 
 Answer:  
For today the subjects to a tariff rate quota in Ukraine are: 
− raw cane sugar (code 1701.11). The Law of Ukraine "On State Budget For 2004" 
determines the import to Ukraine of raw cane sugar in the amount of 125,000 tons on custom duty € 30 per ton till 15 September 2004.  Custom duty above the tariff quota is 
50 per cent of the custom value, but  not less that € 300 per ton; and 
− bottles from clear glass (code 7010.91 21 00).  The Law of Ukraine of 20 April 2004 
No. 1691 for the first time determines te mporarily during 2004-2005 years importation 
within zero rate of bottles from clear glass fo r drinks over 0.33 litre but not over 1 litre. 
Custom duty above the tariff quota is 10 per cent of the custom value. 
Both Laws are temporary. The Regulation on Allocation of Tariff Rate Quota on Raw Cane Sugar Importation Into Ukraine was 
sent to the WTO Secretariat (WT/ACC/UKR/110 /Add.1 from 24 October 2002, internal number 
WTO - 02-5866, Annex 10). 
Question 58 
Paragraph 55:  We also seek information on the normal hours of operation and on the scope of 
customs office locations, so that to be able to see if the new unified fee is really usable by traders. 
Answer:
 
Customs examination of goods and transport vehicl es of carriers at points of transition through the 
state border of Ukraine shall be performed round  the clock as prescribed by standard process 
flowsheets for admittance at the state border of Ukraine of motor vehicles, waterway, railway, and air transport facilities of carriers, subject to approval by the Cabinet of Ministers of Ukraine. 
Question 59 
We would appreciate information on legislatio n currently under consideration to establish 
TRQs for poultry imports. 
Answer:
 
In Ukraine the tariff quotas for the poultry products are not used. Currently, the legislative and the 
normative acts regarding the applying of tariff quotas for poultry products are not considered. 
- Fees and charges for services rendered Question 60 Paragraph 56:  When will the legislation to  harmonise port fees enter into force? 
Answer:
 
The Resolution of the Cabinet of Ministers No. 1069 of 17 July 2003 "On Amending the Regulation 
on Port Fees" established a single rate of port fee for vessels regardless of the flag of the vessel. WT/ACC/UKR/118 
Page 32  
 
 Question 61 
We commend Ukraine for the progress recorded  in this area.  Could Ukraine provide 
information on how the unified fee is operating? 
Answer:
 
In order to simplify procedures for customs clearance  of motor vehicles that cross the customs border 
of Ukraine, the Supreme Rada of Ukraine adopted on 12 July 2001 a Law No. 2659-II І, "On 
Amendments to the Law of Ukraine "On the Introduc tion of the Unified Fee charged at Points of 
Entry through the State Border of Ukraine". 
Pursuant to Article 2 of this Law the unified f ee is charged on motor vehicles that cross the State 
border for performance at entry points of cust oms (in case of transit), sanitary, veterinary, 
phytosanitary, radiological and environmental cont rol of cargo and motor vehicles, and for passage by 
motor vehicles of highways. 
In this respect, the fee charged for licensing or manda tory certification is not included into the unified 
fee, and is not to be charged at entry points at th e State border.  The unified fee shall be charged one 
time, depending on a regime of passage (importa tion, transit) under a single payment document. 
Unified fee rates are approved by Article 5 of the said Law of Ukraine in EURO. 
Unified fees are charged at points of entry through the State border of Ukraine in Ukrainian hryvnias 
pursuant to the official exchange rate of the National Bank of Ukraine effective on the date of 
payment of such fees. 
The amount of the unified fee is not differentiated on the basis of the number of types of control that 
are prescribed for a particular type of products.  Th is is due to the fact th at fee rates do not exceed 
average costs for performance of all types of control at the Border. 
Amounts of unified fee rates depend only on the type of motor vehicle that is subject to control, rather 
than on the type of cargo such vehicle carries. T hus, the same amount of the unified fee is applied to 
two identical vehicles with different cargoes. 
Article 2 of Law No. 2659- ІІІ of Ukraine, dated 12 July 2001, sets the following unified fee rates (see 
Table 2): 
Table 2 - Unified fee rates in Ukraine  
Unified fee rate per unit of motor 
vehicle in € 
Type of motor vehicle Capacity or total mass of the motor 
vehicle with cargo for performance 
of control for passage by 
highways for 
each kilometre 
of passage 
From 10 to 30 seats inclusive 2 0.02 1. Buses  
Over 30 seats 5 0.02 
Under 20 tons inclusive 5 0.02 2. Trucks with or without trailers and 
tractors with or without semi-trailers  Over 20 to 40 tons inclusive 10 0.02 
Over 40 to 44 tons inclusive 10 0.1 
Over 44 to 52 tons inclusive 10 0.2 
From 52 to 60 tons 10 0.27 3.  Heavy-weight motor vehicles  
Over 60 tons (for each next 10 
tons) 10 0.78 
Under 5% inclusive - 0.05 4.  Large-size motor vehicles with axial load 
exceeding  Over 5% to 10% inclusive - 0.1  WT/ACC/UKR/118 
 Page 33 
 
 
 Unified fee rate per unit of motor 
vehicle in € 
Type of motor vehicle Capacity or total mass of the motor 
vehicle with cargo for performance 
of control for passage by 
highways for 
each kilometre 
of passage 
Over 10% to 20% inclusive - 0.27  
Over 20% for each next 5% - 0.15 
5.  Large-size motor vehicles with exceeding 
of width, height, length parameters  For each parameter  - 0.03 
6.  Railway car, container   2 - 
 
Examples of Calculation of the Unified Fee collected  by Ukrainian Customs Offices at the Time of 
Shipment of Goods through Entry Points on the Ukrainian State Border (Importation, Transit) is 
provided in answer on Question 242. 
Question 62 
Paragraph 55:  this section should be complete d with an annex giving the fees for customs 
clearance of goods outside the offices of the cu stoms authorities or outside regular working 
hours (rates and categories). 
Answer:  
Please see the Annex 2. 
Question 63 
Paragraph 56:  A chart listing port fees should be provided.  We need to see the structure of the 
fees to assess the information provided. 
There is reference in WT/ACC/UKR/99/Rev.1 to the "state fee" for import licenses. 
Answer:  
This reference means fee for import licenses. 
Question 64 
Are there other State Fees?  If so please list them. 
Answer:  
The Resolution of the Cabinet of Ministers of Ukraine of 12 October 2000 No. 1544 On Port Fees is 
provided in Annex 3. 
Question 65 
Does Ukraine have any ad valorem  fees on imports still in place? For example: 
− Are ad valorem  fees charged for cust oms clearance under the following conditions: 
products for re-export; products brough t into a licensed customs warehouse; goods 
under customs control and goods at customs control zones within territories and in 
premises of enterprises that store such  goods and other items or after regular 
working hours? WT/ACC/UKR/118 
Page 34  
 
 − Are any of the ship fees, berthage fees, canal fees, lighthouse fees, cargo fees and 
other port fees charged ad valorem  in nature? 
Answer:
 
The rates of customs fee are established by the R esolution of the Cabinet of Ministers of Ukraine 
No. 65 of 27 January 1997. 
The rates of customs fees are the following (see Table 3): 
Table 3 - Rates of customs fees in Ukraine  
Customs Fee Type Rate (US dollars) 
1. Customs clearance of goods and ot her items with customs value:  
 - up to $100 Free 
 - $100-1000 5 
 - more than $1000 0.2% of the customs value of 
goods and other items, but no 
more than the equivalent of 
$1000 
2.  Customs clearance of property tempor arily imported to (exported from) Ukraine 
upon a commitment to (re-import) re-export it: 30 
 - for every customs cargo declaration 30 
 - for every additional sheet supplemented thereto 15 
3. Customs clearance of goods in transit:  
 - for every customs cargo declaration 7 
 - for every additional sheet supplemented thereto 3 
4.  Customs clearance of goods brought  to customs license warehouse:  
 - for every customs cargo declaration 30 
 - for every sheet supplemented thereto 15 
5.  Keeping goods and other items under customs control, per day:  
 - first 15 calendar days free 
 - every next calendar day 0.05% of the customs value of 
goods and other items 
6.  Customs clearance of goods and other ite ms in the customs control zones, on 
territories and premises of enterprise s where such goods and other items are 
stored, or during non-working hours (per one hour work of one customs officer):  
 - during working hours 20 
 - during non-working hours, on Saturdays, Sundays 40 
 - holidays 50 
7. Refusal from ordered services provide d in Section 6 hereof, without giving a 
previous notice in writing: 20 
8.  Customs clearance of an individual m eans of transport provided it is used for 
carriage of goods and other items in  amounts subject to  customs duty: 10 
9. Issuing certificates and permits for re gistration (re-registration) of means of 
transport imported to Ukraine, including  brought to Ukraine for temporary use, 
and also numbered aggregates that are subject to registration with the State 
Automotive Inspectorate: 15 
10.Storage of goods and other items at the customs warehouses excluding goods and 
other items specified in the Customs Code of Ukraine, Article 86), per day (for 1 
kg):  
 - first 10 calendar days 0.1 
 - every next calendar day 0.5 
11.Storage of goods and other items subject to compulsory transfer to and keeping 
under the customs and specified in the Cust oms Code of Ukraine, Article 86, per 
day (for 1 kg):  
 - first 10 calendar days 0.1% of the value of goods and 
other items 
 - every next calendar day 0.5% of the value of goods and 
other items 
12.Issuing the certificate recognizing the enterprise as a declarant (for a period up to 
one year): 1,500  WT/ACC/UKR/118 
 Page 35 
 
 
 Customs Fee Type Rate (US dollars) 
13.Prolongation (reregistration) of the cert ificate recognising the enterprise as a 
declarant (annually) 1,000 
14.Issuing the certificate of  confirmation of delivery of goods accepted under export 
control regime of Ukraine 100 
 
According to the Decree of the Cabinet of Minister s No. 93 of 18 January 2003 those rates are applied 
only until 1 January 2005. 
- Application of internal taxes to imports  - Excise taxes Question 66 Paragraph 60:  Could Ukraine indicate how it w ill eliminate the discrimination based on "excise 
stamps", whereby domestic producers are only obliged to affix them at the time of 
commercialisation, whereas importers must a ffix them at the time of importation? 
Answer:
 
Discrimination relative to labelling of the imported alcoholic beverages and tobacco articles does not 
exist because foreign producers mark alcoholic beverages and tobacco articles intended for the 
importation into the Ukraine in the process of  their production, as do domestic producers. 
Question 67 
Paragraphs 60-62:  We are aware of the followi ng products for which the current excise tax 
regime discriminates agains t imported products: 
- Alcoholic beverages (wine etc.):  during the informal Working Party meeting of 25 
March, the Ukrainian representative inform ed that the current regime has been 
prolonged until 2005. 
Answer:  
Excise tax concessions for cognac and brandy manufactu red in Ukraine aged not less than three years 
were established till 1 January 2004.  The Law of Ukraine "On Amendments to the Law of Ukraine 
"On the State Budget of Ukraine for the Year 2003" and certain other Legislative Acts" of 22 May 2003 No. 849-IV has cancelled these concessi ons and establishes temporary increased excise 
duty rates for alcohol products, imported into Ukraine valid until Ukraine joins WTO. 
Question 68 Denatured ethyl alcohol: excise tax discri mination will be phased out by 2006. 
Answer:
 
Preferential excise duty rates for denatured ethyl al cohol were to remain va lid until 1 January 2005 
but the Law "On 2004 State Budget" suspended them for the year 2004. 
Question 69 Domestically-produced motor ve hicles: excise tax discrimination will be phased out by 2007. WT/ACC/UKR/118 
Page 36  
 
 Answer:
 
We confirm that excise tax discrimination for domestically-produced motor vehicles will be phased 
out by 2007. 
Question 70 
Tobacco products:  we understand that draft legi slation has been adopted by Parliament but 
vetoed by the President proposed which would have introduced differential rates for foreign 
brands. 
Answer:  
This is correct.  The proposal to introduce diff erential rates has been vetoed.  There is no 
discrimination in the application of excise taxes to tobacco products. 
Question 71 In paragraph 67, however, Ukraine commits to a pply domestic taxes, including excise taxes, in 
full compliance with WTO provisions from the date  of accession.  Please clarify the situation. 
Answer:
 
[The representative of Ukraine confirmed that fro m the date of accession, Ukraine would apply its 
domestic taxes including the excise taxes and the va lue added taxes in compliance with the relevant 
provisions of the WTO including Articles I and III of the GATT 1994, in a non-discriminatory manner to imports from all WTO Members and to do mestically produced goods with exemption of 
automobiles until 1 January 2008]. 
Question 72 
Paragraph 62:  We would appreciate a status repo rt on Ukraine's efforts to bring its excise 
taxes into conformity with WTO provisions.  We understand that enactment of the legislation to 
accomplish this has been delayed. 
Concerning alcoholic beverages: 
− Does Table 8 reflect the expiration of "tax concessions for wine products and 
brandies manufactured in Ukraine"? 
− Why does Ukraine seek to delay eliminatio n of the discriminatory excise taxes on 
imported alcohol spirits until 2006? 
Answer:
 
Excise tax concessions for cognac and brandy manuf actured in Ukraine with exposure time not less 
than three years were established till 1 January  2004.  According to the Law of Ukraine "On 
Amendments to the Law of Ukraine "On the State Budget of Ukraine for the Year 2003" and certain 
other Legislative Acts" of 22 May 2003 No . 849-IV these concessions are cancelled. 
Article 7 of the Law of Ukraine "On Excise Duty and Import Duty Rates for Ethyl Alcohol and 
Alcoholic Beverages" No. 178/96 of 7 May 1996, establishes temporary incr eased excise duty rates 
for the pre-accession term for alcohol products, imported into Ukraine.   WT/ACC/UKR/118 
 Page 37 
 
 
 Question 73 
Concerning the excise tax on automobiles: 
− How does Ukraine intend to restructure th e tax to meet WTO obligations, e.g., 
through unification of the current rates or elimination of the tax? 
− We note that in addition to preferential treatment of domestic auto production, the 
excise tax on autos is based on cubic capacity of the engine. This method of taxation 
discriminates unfairly against automobiles with larger engine sizes. If Ukraine 
intends to maintain excise taxes on automo biles, a tax that does not differentiate in 
this manner should be used. 
− Why does Ukraine seek to delay elimination of the discriminatory taxes on imported 
automobiles until 2006? 
Answer:  
Reduced excise rates for domestically produ ced vehicles supposed to be phased out by 
1 January 2007.  Ukraine seeks to support its auto mobile industry through such tax exemptions. 
In order to meet WTO obligations the restructuring of the tax is most likely to be done through 
unification of rates. 
See also ANNEX 4. 
Question 74 
Paragraph 62 and table 8:  As table 8 indicates "e xcluded" for the rate of excise tax in the case 
of jewellery, a mention saying that jewellery is not subject to excise duties should be added in 
this section if our interpretation of "excluded" is correct. 
Answer:  
According to the Law of Ukraine "On Rates of Excise Tax and Import Duties On Certain 
Commodities" No. 313/96- ВР of 11 July 1996 (in redaction of the Law "On Introducing Amendments 
to Certain Laws of Ukraine On Taxation, Ma nufacture and Circulation of Excisable Goods" 
No.195-IV of 24 October 2002) excise tax hasn't  levied on jewellery since 1 January 2003. 
Question 75 
In addition, there seems to be a contradiction between paragraph 62 saying that excise tax 
concessions for wine products and brandies manufactured in Ukraine had lapsed on 
1 January 2004 and Table 8 (as of March 2004) th at clearly indicates different excise duties for 
those imported and domest ic manufactured products. 
Answer:  
See the answer to Question 67. 
Question 76 
Please clarify what is meant in document WT /ACC/UKR/114 answer to Question 33:  "the draft 
law provides for establishing a mixed system for excise duty taxation of all excisable products." 
What do you mean by "mixed system"? WT/ACC/UKR/118 
Page 38  
 
 Answer:
 
Decree of Cabinet of Ministers of Ukraine "O n Excise Duty" No. 18-92 of 26 December 1992 (as 
amended by the Law of Ukraine No. 849-IV of 22 May 2003) since 1 January 2004 established three 
types of excise duty rates which are: 
− ad valorem  rate; 
− specific rate; and 
− simultaneously ad valorem  and specific rate (combined or mixed rate) (see also Annex 4). 
- VAT 
Question 77 Paragraph 65: Correction: the draft Tax Code has not entered into force in the beginning of January 2004.  
The so called mini tax code providing for part ial tax reform, approved by the parliament, was 
vetoed by the President. 
Answer:
 
The draft Tax Code did not enter into force in the beginning of January 2004.  The Verkhovna Rada 
of Ukraine in June 2004 approved at its first read ing draft Law No. 5258 "On amendments to the Law 
of Ukraine 'On VAT'", the so called mini tax code providing for partial tax reform. 
Question 78 
Paragraph 65:  please provide an update on th e future changes foreseen by Chapter IV of the 
draft tax code aimed at complying with WTO req uirements in the case of VAT levied on motor 
vehicles. 
Answer:  
The law of Ukraine "On state budget of Ukraine for 2004" came into force on 1 January 2004 and 
provide for suspension of privileges given to  automotive enterprises by the law "on VAT". 
The current status of policies in the field of i ndustry subsidies may be learned from the Notification 
on industrial subsidies submitted to th e WTO Secretariat in April 2004. 
Question 79 
Paragraphs 63- 67:  The following VAT discrimi nations are not compliant with WTO rules: 
Domestically-produced automobiles:  curren t legislation foresees to maintain the VAT 
discrimination until 2008.  The new law on automo bile production, adopted by Parliament in 
March 2004, does not address the VAT discrimination. 
Answer:  
See the reply to Question 168.  WT/ACC/UKR/118 
 Page 39 
 
 
 Question 80 
Domestic agricultural producti on:  application of zero-rates 
Answer:  
Please see the response to Question 157. 
Question 81 
Imports of fuel oils (crude, gas etc.) from th e Russian Federation:  application of zero-rates 
Answer:  
Please see the answer to Question 85. 
Question 82 
In paragraph 67, however, Ukraine commits to apply domestic taxes, including VAT, in full 
compliance with WTO provisions from the date  of accession. Please clarify the situation. 
Answer:  
[The representative of Ukraine confirmed that fro m the date of accession, Ukraine would apply its 
domestic taxes including the excise taxes and the va lue added taxes in compliance with the relevant 
provisions of the WTO including Articles I and III of the GATT 1994, in a non-discriminatory 
manner to imports from all WTO Members and to do mestically produced goods with exemption of 
automobiles until 1 January 2008. ] 
Question 83 
Please also update on the state of play of the pr oposals to cancel benefits enjoyed by shipyards 
and aircraft industry.  Has this legislation meanwhile been adopted by Parliament? 
Answer:  
The law of Ukraine "On state budget of Ukraine fo r 2004" has been enforced on 1 January 2004 and 
provide for suspension of privileges given to ship building and aircraft construction enterprises by the 
law "on VAT". 
The current status of policies in the field of i ndustry subsidies may be learned from the Notification 
on industrial subsidies submitted to th e WTO Secretariat in April 2004. 
Question 84 Paragraph 63:  Please elaborate on the exemption of domestic agricultural production from the 
VAT?  How is this exemption equally applied for the sale of similar imported products? 
Answer:
 
Two different special mechanisms of VAT taxati on of agricultural enterprises exist in Ukraine. 
The first mechanism is a mechanism, under which processing enterprises calculate and pay subsidies 
to agricultural producers of all forms of ownershi p and business, including citizens' private household 
farms, for their sale to the processing enterprises of  milk and meat in live weight, through use of WT/ACC/UKR/118 
Page 40  
 
 assessed VAT that should be paid into the budget by the processing enterprises and is a source of 
financing for such subsidies.  This support measure is  consistent with the WTO rules.  In this case, the 
State refuses from a transfer into the budget of such portion of VAT amounts for the benefit of support for agricultural producers of milk and meat .  This mechanism for subsidizing agricultural 
meat and milk producers, wherein VAT is used as a s ource of financing, is applied for a period of lack 
of sufficient direct budget outlays.  This mechanis m is governed by Article 6 of the WTO Agreement 
on Agriculture and Annex III:2 of this Agreement,  pursuant to which subs idies shall include both 
budgetary outlays and revenue foregone  by the government or its agents  for the benefit of agricultural 
producers.  The similar type of agriculture supp ort, which existed in 1994-1996, is included in 
WT/ACC/SPEC/UKR/Rev.7 and in the Table on AMS Levels for the period of 2000-2002. 
The above referenced subsidizi ng mechanism works as follows:  ag ricultural producers sell milk and 
meat in live weight to processing enterprises of  all ownership forms pursuant to concluded 
agreements, assessing VAT at a zero rate.  At the same time, tax credit, which consists of VAT amounts paid by agricultural producers in connect ion with purchases of goods (works, services) 
whose costs are treated as their own gross productio n (trading) costs and capital assets or intangible 
assets subject to depreciation, is included in a taxpa yer's tax returns for the reporting period, pursuant 
to which payments are made into the budget, with a tax credit reimbursement from the budget under 
such tax returns.  In order to determine the am ounts of subsidies for agricultural producers for milk 
and meat in live weight to be sold by such producers, processing enterprises prepare on an annual 
basis a preliminary estimate of receipt and use of VAT amounts assessed upon volumes of milk, milk product, meat and meat product sales.  Pursuant  to this estimate, each processing enterprise 
determines a VAT amount (VAT rate is equal 20 per cen t) that will be received by such an enterprise 
in the course of milk, milk product, meat and meat  product sales, as well as a VAT amount (VAT rate 
is equal 20 per cent) that will be assessed for (tra nsferred to) suppliers of goods (works, services), the 
cost of such goods (works, services) being treated as gross production costs therefore, and the amount 
of subsidies payable to agricultural producers for th eir sold milk and meat in live weight per one 
hryvnia of such products' cost. 
The second measure of support through a special m echanism of VAT taxation is to accumulate VAT 
for procurement of inputs for production of agricultu ral products.  Pursuant to Article 11.29 of the 
Law of Ukraine "On the Value Added Tax", da ted 3 April 1997, under No. 168, agricultural 
enterprises are exempted till 1 January 2004 from VA T with respect to transactions involving sales of 
goods (works, services) of their own production, including products (except for excisable goods) 
manufactured under tolling arrangements with thei r own agricultural raw materials, except for 
transactions involving sales to processing enterprises of milk and meat in live weight carried out by agricultural producers covered by the first mech anism described above, irrespective of their 
organizational/legal forms and forms of ownership.  These exemptions are introduced for agricultural 
enterprises in order to accumulate VAT amounts for subsidizing the agricultural producers in case of 
lack of sufficient budget outlays for paying out direct subsidies. 
Pursuant to procedures approved by Resolution No. 271 of the Cabinet of Ministers of Ukraine, dated 
26 February 1999 (as restated by Resolution No. 374 of the Cabinet of Ministers of Ukraine, dated 
23 April 2001), remaining tax liabilities pursuant to tax returns on VAT assessed on sold products, 
goods (works, services) of agricultural producers'  own production, including products (except for 
excisable goods) manufactured under tolling arra ngements with agricultural producers' own 
agricultural raw materials, i.e., the differen ce between the VAT amount (VAT rate is equal 
20 per cent) received by agricultural producers fro m buyers and the VAT amount (VAT is equal 
20 per cent) paid by such producers to suppliers shall be transferred by the agricultural producers 
from current bank account into separate bank accounts within time limits, within which VAT amounts 
must be transferred into the budget.  An agri cultural producer must open the said separate account 
during one reporting period.  The balance of tax cred it pursuant to the above referenced tax returns, 
i.e., a negative difference between the VAT am ount received by agricultural producers from buyers  WT/ACC/UKR/118 
 Page 41 
 
 
 and the VAT amount paid by such producers to suppliers is to be credited for the agricultural 
producers against tax liabilities of next reporting periods. 
Funds transferred by agricultural producers into separate bank accounts shall be used by such 
producers for the purchase of production-designated inputs.  If funds are used for non-designated 
purposes, they shall be collected and transferred in to the State budget in an indisputable manner. 
This type of support through a mechanism for accumulation of funds for subsidizing purchases of 
inputs for agricultural production purposes, wherein VAT is used as a source of financing in case of lack of sufficient direct budget outlays, is governed by Article 6 of the WTO Agreement on Agriculture and Annex III:2 of this Agreement.  Pu rsuant to the provisions of the WTO Agreement on 
Agriculture, subsidies shall include  both budgetary outlays and reve nue foregone by the government 
or its agents for the benefit of agricultural prod ucers.  This measure of support for agricultural 
producers is included in WT/ АСС /4 Tables for the period of 2000-2002. 
Question 85 
Is the exemption of VAT on imports of crude oil,  natural gas, and other such products from 
Russia applied, even in theory, to imports of similar products from other sources?  Does 
Ukraine import these products from other sources? 
Answer:
 
In accordance with free trade agreements, goods import ed into Ukraine are not subject to a duty but a 
value-added tax is collected on ge neral conditions in relation to a ll goods.  The exceptions from this 
list include crude oil, natural gas c ondensate, natural gas, as well as non-irradiated fuel elements (fuel 
rods), and rods with capacitors and security a nd management rods (bumabic absorbers) supplied 
under the free trade agreement w ith the Russian Federation. 
The above exemptions are associated with the f act that Russia applies VAT to export of these 
products to Ukraine, because Ukraine does not import these products from other sources. 
Question 86 
Paragraph 64:  Please give a broader description of the VAT exemption "benefits enjoyed by 
shipyards and aircraft industry" and by automo bile manufacturers in Ukraine.  Please report 
the status of legislation to remove the discriminato ry treatment.  Does Uk raine seek to maintain 
this discrimination after accession to the WTO? 
Answer:  
The law of Ukraine "On state budget of Ukraine fo r 2004" has been enforced on 1 January 2004 and 
provide for suspension during 2004 of privileges gi ven to shipbuilding and aircraft construction 
enterprises by the law "on VAT". 
The current status of policies in the field of indu stry subsidies may be found in the Notification on 
industrial subsidies submitted to th e WTO Secretariat in April 2004. 
Please also see the response to Question 157. 
Question 87 
Paragraph 66:  The statements made by Ukrain e in this section have been answered in the 
Working Party, i.e., whether or not Ukrain e considers VAT exemptions for domestic WT/ACC/UKR/118 
Page 42  
 
 agricultural production a form of subsidy to is  agriculture to be addressed in its agricultural 
support tables is irrelevant to the conflict with Article III represented by this measure.  That 
answer should be included in the text, along with confirmation that to the extent that the exemption discriminates against similar imported agricultural products the measure must be 
eliminated. 
Answer:
 
Within two special mechanisms of VAT payment by: 1) meat and milk processing enterprises, 2) 
agricultural enterprises, the 20% VAT is paid not di rect to the budget, but into separate bank accounts. 
Then those accumulated VAT funds are used to subsidize agricultural commodity producers. The 
State Tax Inspection executes the control over the u se of funds in accordance with the law. This is 
compliant with GATT Article III. 
Question 88 
Discriminatory tax exemptions, for whatever  purpose, violate Article III and must be 
eliminated. 
Concerning the diversion of VAT revenues obtained from the sale of agricultural inputs to 
subsidize domestic agricultural production, we seek more information on the program: 
Does this program apply to all domestic purcha ses of agricultural inputs, or only those to 
registered purchasers?  Does this include  the VAT assessed on imported inputs? 
Answer:  
The question is not clear.  For an answer we need clarification of "registered purchasers". 
Question 89 
Whose bank accounts receive the revenues?  Ho w are the subsidies for agricultural equipment 
disbursed?  How large is the subsidy? 
Answer:  
VAT payments are not sent to the budget, but are de posited in special (separate) bank account, which 
agricultural producers open in any commercial bank fo r using this subsidy to acquire inputs (fuel, 
seeds, fertilizer, pesticides and agricultural equipment or machines).  In more detail the mechanism of 
subsidizing is described in paragraph 63 of the Draf t Working Party Report.  The size of the subsidies 
through the accumulation is shown in the table DS:9 of the domestic support WT/ACC/4. 
Question 90 
Is imported agricultural equipment eligible for pu rchase with the subsidy?  How is it verified 
that the subsidized equipment is not subsequently resold or exported? 
Answer:  
Money deposited in this way by agricultural en terprises can be used for the purchase of any 
production inputs (fuel, seeds, fertilizer, pesticides and agricultural equipment or machines), whether 
domestically produced or imported.  This is the pe rsonal choice of agricultural enterprises.  The order 
of subsidizing does not prohibit the sale or export of the equipment, which acquired by these means.  WT/ACC/UKR/118 
 Page 43 
 
 
 Question 91 
Paragraph 66 indicates that exemptions of VAT for domestic agricultural enterprises have been 
exempted from VAT until 1 January 2004 and th at these exemptions have been extended.  
Please specify the duration of this exemption. 
Answer:  
According to the Law of Ukraine No. 849-IV on 22 May 2003 "On Amendments to the Law of 
Ukraine "On the State Budget of Ukraine for the Ye ar 2003" and certain other Legislative Acts" the 
duration of these exemptions has b een extended until 1 January 2005. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 92 
Paragraph 71:  Ukraine states that "for some of the products listed in Table 9 (Automatic 
licensing of goods), the importer is required to receive prior approval from the relevant administrative agency before obtaining the (autom atic) import license."  We would like to ask 
Ukraine to clarify whether licensing with addition al prior approval is deemed to be automatic, 
and whether the prior approval itself is automatic. 
Answer:
 
The prior approval is not automatic.  As such , goods requiring prior approval under Table 9 in 
Paragraph 1 are subject to non-automatic licensing. 
Question 93 
Paragraph 68:  We understand that the Law on Fo reign Economic Activity is in the process of 
amendment. 
We seek information from Ukraine on the na ture of the revision and how we can expect 
improvements from a WTO perspective.  In particular, we are interested in changes that address Ukraine's application of import restrict ions and its import licensing procedures. 
We understand that licensing/quotas are used  as a remedy for antidumping under current 
legislation. Will Ukraine change that legislation to eliminate the authority to use licensing or 
quantitative measures as a remedy for antidumping? 
We understand that an import license must be ob tained from the Ministry of Agriculture to 
import some products, including fish and other seafood.  However, there is no reference to any 
import license regimes operated by the Ministry of  Agriculture outlined in this section of the 
report.  Please revise this section of th e report to fully outline such regimes. 
If we are to forego a separate section on import  licensing procedures, we will need a general 
discussion of the system in place with reference to how it concords with the provisions of the 
Agreement on Import Licensing Procedures.  The text can be drawn from WT/ACC/UKR/99/Rev.1. 
For example, WT/ACC/UKR/99/Rev.1 indicates that importers must have a "certificate of 
goods examination" issued by the Ukraine Cham ber of Commerce and I ndustry or its regional 
department, determining the Commodit y Nomenclature of the importation. WT/ACC/UKR/118 
Page 44  
 
 Why cannot this be done by customs officials? 
It is stated that "there are no significant reasons to refuse the issue of certificate of 
examination."  Can importers appeal? To whom? 
A "certificate of product origin" is required to  import a product under licensing.  Is this true 
for non-licensed products as well?  Who can issue such as certificate? 
Answer:
 
The Law on Protection of Domestic Produ cers from Dumped Imports No. 330-XIV dated 
22 December 1998 is the only law that governs the application of anti-dumping measures in Ukraine. 
The only ant-dumping remedy under this law is anti-dumping duties.  The Law on Protection of 
Domestic Producers from Dumped Imports No. 330-XIV dated 22 December 1998 does not stipulate 
any import quotas or licensing.  Currently there are no government decisions or resolutions amending 
this Law. 
The Law on Foreign Economic Activities No. 959-X II of 16 April 1991 will be brought in full 
conformity with WTO rules on trade remedies. 
Note that the Ministry of Agrarian policy of Uk raine does not issue any import licenses for any goods 
including fish and other seafood products.  Imports of fish and seafood products are not subject to 
licensing in Ukraine. 
Possibilities to appeal against customs decisions are regulated by the provisions of Article 393 
"Appeal of Resolutions in Cases on Violation of  Customs Regulations" of the Customs Code of 
Ukraine No. 92-IV of 11 July 2002. 
Thus, according to the foregoing provisions the decision in a case of violation of customs regulations 
may be appealed by the person, with respect to whom it was rendered, or a representative of such 
person. 
The appeal against the decision of a regional custom s administration may be filed with the relevant 
regional customs or with a local court at the place of the customs office that rendered the decision. 
Decision of the regional customs on the appeal agains t the decision of the customs offices subordinate 
to regional customs may be appealed to the specia lly authorized central body of executive power in 
the sphere of customs regulation, the State Customs Service, or a local court at the place of such 
regional customs. 
Decision of the regional customs, and of customs offices subordinated to central customs may be 
appealed to the specially authorized central bod y of executive power in the sphere of customs 
regulation, the State Customs Service, or to a local court at the place of the relevant regional or other 
customs. 
If in cases mentioned in parts two, three and f our hereof the decision of the customs body is 
simultaneously appealed to the customs body of highe r level and to a court, and the court accepts the 
appeal, the consideration of a similar appeal by the higher customs authority shall be terminated. 
Decision of the specially authorized central body of executive power in the sphere of customs on 
violation of customs regulations, as well as its deci sion on the appeal against the resolution of other 
customs body in such case may be appealed to a lo cal court at the place of the specially authorized 
central body of executive power in the sphere of customs regulation.  WT/ACC/UKR/118 
 Page 45 
 
 
 An appeal against a decision of the customs body sha ll be filed within ten days of the day of delivery 
of a copy of the decision to an in terested party, or a notification on the decision made.  Should this 
term be violated on a good reason, it may be renewe d upon the application by the interested party to 
relevant regional customs, the specially authorized  central body of executive power in the sphere of 
customs regulation or the court. 
The procedure of appeal against a court judg ment on a case involving violation of customs 
regulations, and prosecutor's presentation of the deci sion shall be determined by the Code of Ukraine 
on Administrative Violations and other laws. 
The mandatory requirements for a certificate of orig in on imports are articulated in Article 282 of the 
Customs Code No. 92-IV dated 11 July 2002.  A certificate of origin is required: 
− for the goods, originated from countries which Ukraine treats preferen tially in accordance 
with the Customs Tariff of Ukraine; 
− for the goods, importation of which from respective countries is subject to regulation by 
quantitative limitations (quotas) or other measures of regulating foreign economic 
activities; 
− if so is provided by international agreemen ts of Ukraine, concluded in accordance with 
the procedure established by law, and also by legislation of Ukraine in the area of 
environment protection, health protection, c onsumer rights protection, public order, state 
security and other vital interests of Ukraine; and 
− in cases where documents, that are subm itted for customs clearance purposes, do not 
contain information concerning the origin of the goods, or if a customs authority has sufficient reasons to believe that the declared  information regarding the origin of goods is 
incorrect. 
Furthermore, Article 284 states that customs clearance and release of goods may take place without 
certificate origin on the condition of full payment du ties.  Importers may however claim duty back on 
goods enjoying preferential treatment by submitting th e certificate or origin no later than one year 
after the date of customs of clearance. 
Certificate of origin on imported goods can be issu ed by Chambers of Commerce at the country of 
origin. 
Question 94 
Paragraph 70:  We will want more information on  the "licensing system to shield consumers 
against low quality products."  Unless any requiremen ts or restrictions applied to imports are 
consistent with SPS and TBT Agreements, includin g meeting the test for mandatory technical 
requirements, such a system may violate WTO provisions. 
Answer:
 
The initial reference to licensing system for shie lding consumers against low quality products was 
made in WT/ACC/UKR/99 dated 13 February 2002.  In July 2003, the licensing regime in Ukraine 
was reformed through amending Article 16 of the Law on Foreign Economic Activities No. 959-XII 
of 16 April 1991.  The new licensing system does not envisage licensing requirements to protect against low quality products.  According to Article  16, licensing of imports of goods in Ukraine shall 
be introduced in the event of: 
− drastic deterioration of the state of the paym ent balance and external payments (if other 
measures proved inefficient); 
− sharp decrease or minimal size of gold and currency reserves; WT/ACC/UKR/118 
Page 46  
 
 − necessity to secure protection of the life of human beings, animals or plants, environment, 
public morale, national wealth of art, histori cal or archeological importance, or protection 
of intellectual property rights, as well as to comply with the requirements of national security; 
− imports of precious metals, except for banking metals; 
− necessity to apply measures of protection of the domestic producer (safeguards); 
− necessity to ensure protection of patents, trademarks and copyright; and 
− necessity to ensure the fulfilment of international treaties of Ukraine. 
Ukraine requests that Paragra ph 70 be amended accordingly. 
Question 95 Paragraph 72:  Is the import li censing fee per application? 
Answer:
 
The import licensing fee is per application. 
Question 96 
Paragraph 71 and Table 9 are misleading.  It sh ould be made clear that the permit required 
from the regulating Ministry is the main import  license, not the license obtained automatically 
from the Ministry of Economy, and that its issuance is discretionary, not automatic.  This 
should be made clear in both sections. 
Answer:  
Please see answer to Question 92. Question 97 Paragraphs 73-74:  The discussion is somewhat st range, as Ukraine is not quoted on whether it 
applies any import quotas.  We seek informat ion in the text on these and any other quotas 
Ukraine had applied or still retains authority to a pply.  This authority should be fully described 
in the text of the Working Party report. 
Answer:
 
Currently Ukraine applies import quotas only with in  safeguard measures in accordance with the Law 
on the Application of Safeguard Measures against Imports to Ukraine No.332-XIV dated 22 December 1998. 
The quotas referenced in paragraph 73, restricting li vestock imports, were stipulated in Article 3 of 
the Law on State Regulation of Agricultural Imports  No. 468/97 of 17 July 1997. Article 3 validity 
expired in 2003.  Such quotas do not exist at this point in Ukraine. 
The following safeguard measures have expired and have been eliminated: 
Product Description Code 
Newsprint 4707 90 90 00 
Iron ores:  non-agglomerated, ag glomerated originating in the Russian Federation 2601 11 00 00 
2601 12 00 00 
Synthetic fur and worsted fabric originating in the Republic of Belarus, People's 4304,  WT/ACC/UKR/118 
 Page 47 
 
 
 Product Description Code 
Republic of China (including from Hong  Kong, Siangan, Macao, Aomin), Chinese 
Taipei, the Russian Federation and the Republic of Hungary 6001 
Polyurethane plates, sheets, tape and platters originating in the Russian Federation, 
Republic of Belarus, Lithuania, Poland , Czech Republic, Republic of Hungary 3921 13 
Electric light bulbs originating in the Republic of Belarus, Russian Federation, 
Poland and the Republic of Hungary 8539 10 
8539 22 90 10 
8539 22 90 90 
8539 29 98 00 
 
The following safeguard measures are currently in  effect and were taken by Decision of the 
Interdepartmental Commission for International Tr ade in accordance with the Law on the Application 
of Safeguard Measures against Imports to Ukrain e No.332-XIV of 22 December 1998.  These will be 
in effect for the validity period of the measure: 
Product Description Code Validity Period Intermedia te Measures 
Baking soda originating from the 
Russian Federation 2836 30 00 00 From 10 July 2002 to 10 July 
2006 None 
Needle and non-needle syringes made 
of plastic materials with volume of 2, 
5, 10, 20ml originating from the 
Russian Federation, Slovakia, 
Belgium, Ireland, Poland, Germany 
and Spain. 9018 31 10 00 from 21 June 2001 to 21 June 
2005 3 July 2002 safeguard 
quota were liberalized by 
5%, а 28 August 2003 – 
by another 5% vs. the 
initial quota level  
Portland cement originating from the Russian Federation 2523 29 00 00 from 10 October 2002 to 10 
October 2006 1 October 2003 safeguard 
quota were liberalized by 
5% 
New cars originating from the 
Russian Federation 8703 22 19 00 from 12 December 2002 to 8 
December 2006 17 October 2003 
safeguard quota was 
increased by 10% 
 
Paragraph 74 references the procedures for ad ministering quotas under special licenses in case of 
application of safeguard measures in accordance with Ukraine's Law on the Application of Safeguard 
Measures against Imports to Ukraine No. 332-XIV of 1998. 
Regarding the system of import licensing in the frame work of safeguard measures in Ukraine, licenses 
are issued in accordance with "first in – firs t out" principle following the world practice. 
- Customs valuation 
Question 98 Paragraph 78-79:  Could the Working Party recei ve a copy of the draft Law to amend the 
Customs Code to ensure the integration of the Interpretative Notes in Ukraine's legislation? 
Answer:
 
Ukraine is working on an amendment of the Cust oms Code of Ukraine.  Incorporation of the 
interpretative notes to the Customs Valuation Agr eement into the Code will be included among the 
said changes.  Upon the end of this work Ukraine will provide mentioned draft to the Working Party. 
Question 99 
Paragraph 78:  please indicate the legal basis to appeal to a higher authority within the Customs 
administration.  Which steps did Ukraine undertake to put its practice regarding the WT/ACC/UKR/118 
Page 48  
 
 publication of judicial decisions in line with the requirements of Article 12 of the Customs 
Valuation Agreement? 
Answer:
 
Possibilities to appeal against customs decisions are regulated by the provisions of Article 393 
"Appeal of Resolutions in Cases on Violation of  Customs Regulations" of the Customs Code of 
Ukraine No. 92-IV of 11 July 2002. 
Thus, according to the foregoing provisions the decision in a case of violation of customs regulations 
may be appealed by the person, with respect to whom it was rendered, or a representative of such 
person. 
The appeal against the decision of a regional custom s administration may be filed with the relevant 
regional customs or with a local court at the place of the customs office that rendered the decision. 
Decision of the regional customs on the appeal agains t the decision of the customs offices subordinate 
to regional customs may be appealed to the specia lly authorized central body of executive power in 
the sphere of customs regulation, the State Customs Service, or a local court at the place of such 
regional customs. 
Decision of the regional customs, and of customs offices subordinated to central customs may be 
appealed to the specially authorized central bod y of executive power in the sphere of customs 
regulation, the State Customs Service, or to a local court at the place of the relevant regional or other 
customs. 
If in cases mentioned in parts two, three and f our hereof the decision of the customs body is 
simultaneously appealed to the customs body of highe r level and to a court, and the court accepts the 
appeal, the consideration of a similar appeal by the higher customs authority shall be terminated. 
Decision of the specially authorized central body of executive power in the sphere of customs on 
violation of customs regulations, as well as its deci sion on the appeal against the resolution of other 
customs body in such case may be appealed to a lo cal court at the place of the specially authorized 
central body of executive power in the sphere of customs regulation. 
An appeal against a decision of the customs body sha ll be filed within ten days of the day of delivery 
of a copy of the decision to an in terested party, or a notification on the decision made.  Should this 
term be violated on a good reason, it may be renewe d upon the application by the interested party to 
relevant regional customs, the specially authorized  central body of executive power in the sphere of 
customs regulation or the court. 
The procedure of appeal against a court judg ment on a case involving violation of customs 
regulations, and prosecutor's presentation of the deci sion shall be determined by the Code of Ukraine 
on Administrative Violations and other laws. 
Currently court or administrative decisions on valu ation are published in "The bulletin of commercial 
legal practice". 
Please see also the answer to Question 102. Question 100 Paragraph 79:  please provide the draft legislatio n incorporating the interpretative notes of the 
Customs valuation agreement.  WT/ACC/UKR/118 
 Page 49 
 
 
 Answer:  
Please see the answer to Question 98. 
Question 101 
A Commitment Paragraph needs to be added to this section. 
Answer:  
[The representative of Ukraine indicated that Ukraine will apply the WTO provisions concerning 
customs valuation from the date of accession, particularly the Agreement on the Implementation of Article VII of the GATT 1994]. 
Question 102 
Document WT/ACC/UKR/114, Question 47:  as of which date will decisions of court bodies, in 
particular in the customs valuation area, be available on the internet? 
Answer:
 
The amendments being drafted to the Customs Code  will stipulate mandatory publication of court or 
administrative decisions on valuation (such court or  administrative decisions of general application 
are not yet placed in the Internet but will be placed  on the State Customs Service's official website). 
Currently court or administrative decisions on valu ation are published in "The bulletin of commercial 
legal practice". 
Question 103 
We have reviewed Chapters 46 and 47 of Section XI of the Ukrainian Customs Code and the 
Resolution of the Cabinet Ministers of Ukraine No. 1375 of 28 August 2003, on Approval of the Procedure for Declaring the Customs Value of Goods that Move Across the Customs Border of 
Ukraine.  We have general remarks on the le gislation, and will provide detailed comments 
separately. We also have specific points on the text. 
We understand that these have replaced previous rel evant legislation. If this is not the case, we 
would appreciate information on additional relevant authority. 
Answer:
 
Indeed the new Customs Code No. 92-IV dated 11 Ju ly 2002 and Resolution of the Cabinet Ministers 
of Ukraine No. 1375 of 28 August 2003, which both ca me into force on 1 January 2004, supercede all 
previous legislation governing customs valuati on particularly the following which are currently 
invalid: 
− The Customs Code of Ukraine of 12 December 1991; 
− The Resolution of the Cabinet of Ministers of Ukraine No. 1598 of 5 October 1998 "On 
Approval of the Procedure for Estimation of the Customs Value of Commodities and 
other Articles in the Event of their Moving through the Customs Border of Ukraine"; and 
− The Resolution of the Cabinet of Ministers of Ukraine No. 1537 of 12 October 2000 "On 
Introduction of Amendments a nd Additions to the Procedure for Estimation of the 
Customs Value of Commodities and other Articl es in the Event of their Moving through 
the Customs Border of Ukraine". WT/ACC/UKR/118 
Page 50  
 
 Ukraine kindly requests that paragraph 76 and Anne x 1 (customs regulations ) of the Draft Report 
(WT/ACC/SPEC/UKR/5) be amended accordingly. 
Question 104 
Concerning the legislation:  Interpretative Notes. The most serious deficiency appears to be that 
neither the Code nor the Resolution incorpor ate the provisions of the Valuation Agreement 
Interpretative Notes.  Article 14 of the WTO Customs Valuation Agreement stipulates that the 
Interpretative Notes to the Agreement (contained  in Annex 1) form an integral part of the 
Agreement and the Articles are to be read in  conjunction with the Interpretative Notes. 
Therefore, Ukraine should amend its legislation to include the provisions of the Interpretative 
Notes which form an integral part of the Valuation Agreement. 
Answer:
 
Please see answer to Question 98. 
Question 105 
Transparency.  We were unable to identify legal requirements to provide the transparency 
required by the WTO Agreement, e.g., that judicial  valuation decisions as well as administrative 
rulings be published. 
Please provide the legal citation for such requirem ents or indicate how the current legislation 
will be amended to establish it. 
Answer:  
Please see answer to Question 102. 
Question 106 
Guarantee/Surety Provisions.  Article 264 of th e Ukrainian Code establishes a system that 
allows importers to withdraw its goods from cu stoms, pending the final determination of the 
customs value when the importer provides sufficient guarantee in the form of surety or other deposit covering the ultimate payment of custom s duties.  However, the term of such surety 
agreements is limited to 30 days in duration. 
This is a critical provision of the Agreement.  The timeframe provided in the Code is too limited. 
Provision for extending the timeframe should be added. 
In addition, Article 264 notes that "all additi onal expenses incurred by the declarant in 
connection with the verification of the declared customs value ... are charged to the declarant's 
account." 
A provision authorizing a customs authority to ch arge an importer for the cost for verifying the 
declared value of merchandise is inconsistent with Article 13 of the Valuation Agreement. The 
Article should be amended to eliminate any provision authorizing the customs authority to charge an importer for the cost of verifying the declared value of imported merchandise.  WT/ACC/UKR/118 
 Page 51 
 
 
 Answer:  
Ukraine would like to clarify that the text in Article 264 is simply stating that the costs incurred by the 
importer (not by the Customs Service of Ukraine)  for specifying the customs value and for filing 
additional information with the Customs Service cannot be reimbursed by the Customs Service of 
Ukraine.  Such costs are borne by the importer.  Article 264 does not authorize the Customs Service 
of Ukraine to charge the importer the cost of verifi cation by the Customs Service of the declared value 
of imported merchandise. 
Question 107 
Prohibited Methods of Valuation:  Article 273 of the Code does not include the provision of 
Article 7 of the Valuation Agreement that arbitrary or fictitious values cannot be used to 
determine the customs value.  This should be amended.  The Article also indicates that 
determination of the customs value must be cons istent with principles and provisions of Article 
VII of GATT and Agreement on Application of Article VII of GATT of 1994.  The reference to Article VII of GATT is confusing, and should be deleted. 
Answer:
 
Article 273 of the Customs Code states that arbitrar y or not-credible importation may not be used to 
determine customs values.  Ukraine requests clarif ication as to why a reference to GATT Article VII 
is confusing. 
Question 108 
Currency Conversion:  Is the exchange rate used  for valuation under the Code published, and if 
so, in what publication and how often? 
Article 9 of the WTO Valuation Agreement provides that the conversion rate used shall be that 
at the time of exportation or importation. 
Item 19 of Resolution No. 1375 states that a correc tion of customs value shall be made on the 
basis of the currency exchange rate at the "dat e of acceptance" by customs.  Is the date of 
acceptance the date of import ation under Ukrainian Law? 
Answer:  
The exchange rate at the National Bank of Ukraine is the rate used for valuation purpose.  It is 
available at the website of the National Bank of  Ukraine and updated every working day for hard 
currencies. 
The date of acceptance is not the date of importati on under Ukrainian Law.  Th e date of importation is 
the date the goods clear customs.  The date of accep tance is when customs clearance starts, that is, the 
date on which customs has received the customs decl aration and all documents and data necessary for 
customs control and the clearance of goods. 
Question 109 
Confidential Information:  Although Article 263 of the Ukrainian Code generally ensures 
confidential treatment of business proprietary in formation, it allows disclosure when specified 
by law. WT/ACC/UKR/118 
Page 52  
 
 Under what circumstances could confidential business information be publicly disclosed under 
this exception? 
Answer:
 
In addition to disclosure as requested by court or ders or for criminal investigations by law 
enforcement agencies and the tax administration, c onfidential information could be publicly disclosed 
if keeping of such information in secret could enda nger public health or life (Article 30 of the Law on 
Information). 
Question 110 
Generally Accepted Accounting Principles: Finally,  there is no mention in the Ukrainian Code 
of the use of Generally Accepted Accounting Principles (GAAP).  The use of GAAP should be 
included in Ukraine's legislation, consistent with  the General Note in the Interpretative Notes. 
Answer:  
The requirement to use Generally A ccepted Accounting Principles, as stipulated in the General Note 
of Annex I of the Customs Valuation Agreement, will  be stipulated in the legislative act adopting the 
Interpretative Notes. 
Question 111 There are other issues, including apparent differen ces with the Agreement on the definition of 
transaction value, no provisions for deduction from transaction value, deficiencies in the criteria that can be used for determining when to use tr ansaction value between related parties, lack of 
procedural protections for declarants when th e declared value is rejected, and gaps and 
differences in language concerning valuation of royalties and licensing fees and how and when 
the "fallback method" of valuation will be us ed. We will provide a detailed list of issues 
bilaterally, and to the Secretariat. 
Answer:
 
Ukraine welcomes these comments. 
Question 112 
Comments on the Working Party Text:  Paragraph 76:  We had understood that CM Order 
No. 1598 had been superceded by CM Resoluti on No. 1375 of 28 August 2003, on Approval of 
the Procedure for Declaring the Customs Value of  Goods that Move Across the Customs Border 
of Ukraine. 
Answer:  
This information is correct. Question 113 Paragraph 77-78:  We are not prepared to ag ree that Ukraine's customs valuation regime is 
WTO-consistent.  Paragraph 78 indicates that we have raised this issues before.  We would like to see our concerns noted in more detail in the text, and we await Ukraine's response.  WT/ACC/UKR/118 
 Page 53 
 
 
 Answer:  
Ukraine is working on an amendment of the Cust oms Code of Ukraine. Incorporation of the 
interpretative notes to the Customs Valuation Agr eement into the Code will be included among the 
said changes.  Other comments made by Members w ill be fully taken into account.  When finished 
Ukraine will provide the draft to the Working Party. 
Question 114 Paragraph 79:  We appreciate the assurances in  paragraph 79, and look forward to reviewing 
the new legislation when it is provided. 
Answer:
 
Please see the answer to Question 113. - Rules of origin Question 115 Paragraph 80:  the period of 150 days to obtain origin determination is too long. 
Answer:
 
The 150 days requirement is in line with Article 2(h) of the WTO Agreement on Rules of Origin. 
Question 116 Paragraphs 80-81:  We would like to have additional information of how systematically the 
requirement for the certificate of origin is applie d to imports.  Is the "common" rate of import 
duty always levied on imports without the certificat e of origin (instead of the "privileged" rate)? 
Is it possible to present the certificate of or igin retrospectively?  As regards the refund of 
customs duties, what kind of procedures and timetables are in use in Ukraine? 
Answer:
 
The mandatory requirements for a certificate of orig in on imports are articulated in Article 282 of the 
Customs Code No. 92-IV dated 11 July 2002.  A certificate of origin is required: 
− for the goods, originated from countries which Ukraine treats preferen tially in accordance 
with the Customs Tariff of Ukraine; 
− for the goods, importation of which from respective countries is subject to regulation by 
quantitative limitations (quotas) or other measures of regulating foreign economic 
activities; 
− if so is provided by international agreemen ts of Ukraine, concluded in accordance with 
the procedure established by law, and also by legislation of Ukraine in the area of 
environment protection, health protection, c onsumer rights protection, public order, state 
security and other vital interests of Ukraine; and 
− in cases where documents, that are subm itted for customs clearance purposes, do not 
contain information concerning the origin of the goods, or if a customs authority has 
sufficient reasons to believe that the declared  information regarding the origin of goods is 
incorrect. WT/ACC/UKR/118 
Page 54  
 
 The "common" rate of import duty is always levied on imports without the certificate of origin 
(instead of the "privileged" rate). 
It is possible to present the certificate of origin retr ospectively no later than one year from the date of 
customs clearance. 
Question 117 
Paragaph 80:  We would appreciate a more specific reference to the legal authority for rules of 
origin in Ukraine.  We would like an update on the supplementary legislation referred to in the 
paragraph. 
Answer:
 
The legal authority for non-preferential rules of or igin is provided in Section XII of the 2002 Customs 
Code (Articles 276-285). 
The order of determination of country of origin of a good (actions of offi cials in this area) is set by the 
Resolution of the Cabinet of Ministers of Ukra ine No. 1864 on 12 December 2002 "On approval of 
the Order of determination of country of origin of a good, crossing the customs border of Ukraine" on 
the basis of provisions of the Customs Code of Ukraine. 
Question 118 Paragraph 81:  We seek more detailed descriptio n of the rules of origin used in Ukraine's 
preferential trade agreements. 
Answer:
 
Ukraine currently has bilateral fre e trade agreements with CIS countries.  The free trade arrangement 
with the three Baltic States are no longer in effe ct. Please make necessary amendments to Paragraph 
220 of WT/ACC/UKR/5. 
Preferential Rules of Origin with CIS Countries The Rules of Origin of the CIS Countries, ad opted by the Council of Governments of the 
Commonwealth of Independent Countries on 30 Nove mber 2000 govern preferential trade with CIS 
countries.  In essence, the country where the commodi ty was completely produced or sufficiently 
treated/processed is considered the country of origin of the commodity. Commodities completely 
produced in a country cover the following: 
 (a) mineral resources extracted from the entrails of the earth of the country, its territorial 
sea or from the bottom of this sea; 
 (b) products of plant origin produced and harvested in the country;  (c) living animals born and grown in the country; 
 (d) products produced from the animals grown in the country; 
 (e) products produced from hunting and fishing in the country;  (f) products of sea fishery and other sea trade produced on the vessel owned or rented by 
the country; 
 (g) products produced on board the vessel ow ned by the country exclusively from the 
products indicated in sub-item "f"; 
 (h) products extracted from the sea bottom or sea bowels outside the territorial sea of the 
country on condition that this country has ex clusive rights for exploitation of this sea 
bottom or these sea bowels;  WT/ACC/UKR/118 
 Page 55 
 
 
  (i) wastes and scrap (secondary raw materi als) produced as a result of production or 
other operations, as well as second hand articles collected in the country and fit only for processing as raw material; 
 (j) products of high technologies produced in the open space on the spaceships owned or 
rented by the country; and 
 (k) commodities produced in the country exclusively from the products indicated in sub-
items "а" - "j". 
The country where raw materials we re treated last is considered the country of origin of such 
materials provided these raw materials are confirmed by certificate CT-1.  Otherwise, the criterion of sufficient processing/treatment is applied which may be expressed as change in tariff classification; 
ad valorem rule; or meeting mandatory conditions, pr oduction, and technological operations. The 
criterion of sufficient processing/treatment is also applied when a third country participates in the 
production of the commodity. 
A change of tariff classification at the level of at least one of the first 4 digits in the HS, which has 
occurred as a result of processing of a good, is the main criterion for sufficient processing/treatment. 
This is applied to all commodities except comm odities included into the List of Conditions, 
Production and Technological Operations (0201, 0202, 0206, 0207, 0210, 0402, 0408 ) when the commodity is considered to originate from the country where these conditions, production and technological operations took place. The ad valorem  rule may be included into the List either 
independently or in combination with other cr iteria of sufficient treatment/processing of the 
commodity. 
The following operations are not considered  as meeting the criterion of sufficient 
treatment/procession of the commodity: 
 (a) operations on providing preservation of the commodity under storage or 
transportation; 
 (b) operations of preparation of the comm odity for sale and transportation (splitting of 
the consignment, formation of shipment, sorting, repackaging); 
 (c) simple assembling operations;  (d) mixing of commodities (components), whic h does not result in essential differences 
of the obtained product from the initial components; 
 (e) cattle slaughter; and  (f) combinations of two or mo re above mentioned operations. 
Question 119 Paragraph 82:  We will provide suggested lang uage for a more detailed commitment paragraph 
after we have answers to our questions. 
Answer:
 
Ukraine takes note. - Other customs formalities Question 120 Paragraph 83:  If there were specific complaints  from members, these should be described. WT/ACC/UKR/118 
Page 56  
 
 Answer:
 
Ukraine is not aware of specific complaints from Members. 
- Preshipment inspection 
Question 121 Paragraph 86:  This commitment language is not adequate.  We propose something more like 
the following: 
The representative of Ukraine confirmed that if Ukraine employed Preshipment inspection 
services in the future, the Government of Ukra ine would ensure that the requirements of the 
WTO Agreement on Preshipment Inspection were fully implemented and that the operations of any preshipment inspection companies retained by Ukraine met the requirements of the WTO 
Agreements, including the Agreement on the Impl ementation of Article VII and Articles VIII 
and X of the GATT 1994.  The Working Party took note of these commitments. 
Answer:
 
Ukraine does not object to the proposed language. 
- Anti-dumping, countervailing duties, safeguard regimes 
Question 122 
Paragraphs 88-89:  Is the legislation listed the most recent?  Are there any plans for 
amendment?  Are there any relevant Government resolutions or decrees that elaborate on this 
legislation.  If so, they should be listed and provided for Working Party review. 
Answer:  
The applicable Law of Ukraine "On Protection of Do mestic Producers against Dumped Imports" is in 
effect, as amended by Law of Ukraine No. 1595- ІІІ, dated 23 March 2000, and Law of Ukraine 
No. 860–ІV, dated 22 May 2003 (the amendments made by  the said Laws are of an editorial nature 
related to changes in the name of Ukraine's Ministry of Economy). 
Question 123 
Does the law provide for the use of licensing or quotas as a remedy? 
Answer:  
The Law on Protection of Domestic Produ cers from Dumped Imports No. 330-XIV dated 
22 December 1998 does not provide for any licensi ng of or quotas for imports.  The only anti-
dumping remedy under this law is anti-dumping duties. 
Question 124 
Paragraph 90:  Table 11 lists current safeguard actions and ongoing cases.  Please describe the 
surveillance system and supervisio n measures referred to in the Ta ble.  How is the surveillance 
and supervision conducted?  Are these "remed ies" in themselves or interim measures?  WT/ACC/UKR/118 
 Page 57 
 
 
 Answer:  
Surveillance of imports to Ukraine is applied by  the Law "On Application of Safeguard Measures 
against Imports to Ukraine", provided that the special  investigation has failed to detect any damage to 
the national producer, but there is a threat of such  damage in the future.  Surveillance is not a 
restrictive measure against imports to Ukraine.  It is applied in order to analyze the volumes and value 
of the imports of products subject to it.  Surve illance of the volumes and value of imports is carried 
out in the form of licenses for imports to Ukraine, the volume of licenses to be issued not restricted. 
Question 125 
Paragraph 91 and Table 11:  In table 11 it would be useful to indicate the duration of the 
Safeguard measure for the completed Safeguard in vestigation and also the kind of measure for 
ongoing Safeguard investigation, i.e. what are the supervision measures taken. 
Answer:  
The comment has been taken into  account in the updated version of the Table 4 attached hereto. 
The kind of measures for ongoing Safeguard investigati on are not yet defined as the investigations are 
still going on.  On supervision measures please see the answer to Question 124.  
 WT/ACC/UKR/118 
Page 58 Table 4 - Safeguard measures taken by Ukraine  
Investigation started Investigation 
completed Measures taken Duration of measure 
Country Commodity - 
subject of 
investigation Date and number 
of decision Date of publication 
of decision Date and number 
of decision Date of publication 
of decision Size of annual safeguard quota  
COMPLETED SAFEGUARD INVESTIGATIONS 
Russian Federation, 
Slovak Republic, 
Kingdom of Belgium, 
Ireland, Poland, 
Germany and Kingdom of Spain Syringes with 
or without 
needles of 
plastic 
materials Decision No.SP-
13/2001/52-61 
dated 
1 December 2001 18 January 2001 Decision No.SP-
17/2001/52-44 
dated 8 June 2001 21 June 2001 893464.3 kg From 21 June 2001 
to 21 June 2005 
Russian Federation Baki ng soda Decision No.SP-
24/2001/52-46 
dated 
7 November 2001 14 November2001  Decision No.SP-
44/2002/52-46 
dated 5 July 2002 10 July 2002 2,500 tons From 10 July 2002 
to 10 July 2006 
Russian Federation Portland 
cement Decision No.SP-
25/2001/52-48 
dated 
13 December 2001 19 December 2001 Decision No.SP-
49/2002/52-48 
dated 
7 October 2002 10 October 2002 157,500 tons From 10 October 2002 
to 10 October 2006 
Russian Federation New cars Decision No.SP-
28/2002/52-49 
dated 
8 January 2002 11 January 2002 Decision No.SP-
54/2002/52-49 
dated 
6 December 2002 12 December 2002 20,826 units From 
12 December 2002 
to 12 December 2006 
Irrespective of country of origin Biscuit 
products Decision No.SP-
59/2002/52-54 
dated 
6 December 2002 11 December 2002 Decision No.SP-
85/2003/52-99 30 December 2003 Safeguard measures were 
introduced in the form of a duty 
in the amount of 18.3% of the 
customs value of the 
commodity but not less than 
€0.3 per kilo (for products with 
value not exceeding US$ 1.5 
per kilo) From 
30 December 2003 
to 30 December 2007  
  WT/ACC/UKR/118
 Page 59Investigation started Investigation 
completed Measures taken Duration of measure 
Country Commodity - 
subject of 
investigation Date and number 
of decision Date of publication 
of decision Date and number 
of decision Date of publication 
of decision Size of annual safeguard quota  
ONGOING SAFEGUARD INVESTIGATIONS 
Irrespective of country 
of origin Abrasive 
instrument Decision No.SP – 
95/2004/52 of 
25 March 2004 8 April 2004  
Irrespective of country 
of origin Permanganic 
commodity 
oil  Decision No.SP – 
96/2004/52 of 
25 March 2004 8 April 2004  
Irrespective of country 
of origin Ingots of 
grey and 
super solid 
cast iron for 
the 
production of 
hydraulic 
transmission 
GST-90 Decision No.SP – 
97/2004/52 of 
25 March 2004 8 April 2004  WT/ACC/UKR/118 
Page 60 
 
 
 Question 126 
Paragraph 92:  What is the status of the amending  legislation?  We look forward to the results 
of the review of Ukraine's safeguard measures in relationship to the Agreement on Safeguard 
measures and the revised version of the Law "On the Application of Safeguard measures 
against imports to Ukraine".  The results of the review and the revised law will be essential in 
amending this section of the report. 
Answer:  
The Draft Law on Amendment of the Law "On Appli cation of Safeguard Measures against Imports to 
Ukraine" has been approved by the Verkhovna Ra da's specialized Committee on Economic Policies, 
National Economy Management, Ownership and Inv estment, and is now to be included to the 
Verkhovna Rada's agenda. 
The text of this draft will be submitted under document reference WT/ACC/UKR/98/Add.16. 
Question 127 
Paragraph 92 lists the provisions of the Ukrain ian Law inconsistent with the WTO Agreement 
on safeguards.  The end of paragraph 92 indica tes that a law is under preparation.  Please 
provide an English translation of the text of this draft and indicate when the adoption of the 
draft is foreseen. 
Answer:  
See answer to Question 126. 
Question 128 
Paragraph 93 mentions difficulties with Ukraine' s implementation of Safeguard measures, i.e. 
that late receipt of information, insufficient proof  of import surges, of injury and causal link 
and also the way the quota for imported plates, sheets, films and other articles of polyurethane 
has been set (2.5 times below average imports in the last three representative years).  We join 
these Members requiring the elimination of this inconsistent practice also for future cases. 
Answer:  
Safeguard measures on imports of plates, films, sheets and other polyurethane products to Ukraine 
were cancelled by the decision of the Interd epartmental Commission on International Trade 
No. SP-83/2003/52-49 of 8 October 2003.   The Ministry of Economy of Ukraine has not received, so 
far, any statements that the existing safeguard measures on imports to Ukraine violate WTO rules. 
Question 129 
Paragraph 95 – in this paragraph, a commitmen t as concerns the Safeguards Agreement is 
missing. 
Answer:  
The latest wording of Paragraph 95:  [The represen tative of Ukraine confirmed that from the date of 
accession, Ukraine would comply with provisio ns of the WTO Agreements on Antidumping, 
Safeguards, Subsidies and Countervailing Measures.]  WT/ACC/UKR/118 
 Page 61 
 
 
 Question 130 
We requested Ukraine to confirm that no anti dumping duties would be imposed if the imports 
of a given product will constitute less than 3 per cent from the overall import volume of this 
product. 
Answer:  
Pursuant to the Law of Ukraine "On Protection of  Domestic Producers against Dumping Imports", no 
anti-dumping duty would be applied against goods, whose import to tals less than 3 per cent of the 
total volume of imports. 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 131 Paragraph 96 ff:  The export duty on ferrous metal scrap should be added to the list of the 
export duties levied in Ukraine.  The Law No. 216-IV of 24 October 2002 introduced a € 30 per tonne export duty on ferrous metal scrap 
Answer:
 
Ukraine has included the export duty on ferrous metal scrap into the list of the export duties levied in 
Ukraine, which is reflected in the re-worded Para graph 96 of the Draft Report of the Working Party. 
Question 132 
Export duties:  from the information provided, it seems that Ukraine does not intend to phase 
out its export duties.  However, during the in formal Working Party meeting of 25 March, the 
representative of Ukraine referred to Ukraine's intention to phase out export duties.  Could a 
commitment paragraph be added to this section or paragraph 108 in next section be amended. 
Answer:  
Ukraine will conduct a policy of gradually reducing  the level of export duties. For instance, the 
Customs and Tariff Council of Ukraine has approved the draft law "On Amending Certain Legislative 
Acts of Ukraine (regarding raw hide exports)" wh ich provides for the reduced export rate for group 
4101, from 30 per cent but no less than € 400 a ton, dow n to 10 per cent but no less than € 100.  The 
draft law is under consideration by  the Supreme Rada of Ukraine. 
As for the gradual reduction of the export duty on seeds of oil crops, the Ministry of Agricultural 
Policy has developed the draft law "On Amending Ce rtain Laws of Ukraine" which provides for the 
reduction of the export rate from 17 per cent down to 15 per cent. 
[The representative of Ukraine sai d that on accession Ukraine will ensu re that any export quantitative 
controls or export licensing requirement maintained or introduced are consistent with the relevant 
WTO provisions, including those contained in Articles XI, XVII, XX and XXI of the GATT 1994]. WT/ACC/UKR/118 
Page 62 
 
 
 - Registration requirements for engaging in exporting 
Question 133 Are there no activity licensing requirements for ex portation, e.g., for the products under activity 
licensing? 
Answer:
 
The registration requirements for engaging in exporting are the same as those for importing (see 
paragraph  41 of WT/ACC/SPEC/UKR/5). 
The Table in reply to Question 23 of WT/ACC/ UKR/114 lists the goods, the import and export of 
which require an activity license. 
Question 134 Paragraph 96:  Are these the only laws that provide for export duties?  We understand that 
Ukraine applies an export tax of € 30 per ton on  ferrous scrap.  There is also reference to 
nonferrous scrap duties. 
Answer:
 
As regards ferrous scrap, please see the Table 5.  There are no export duties on non-ferrous scrap. Question 135 Paragraph 96 and table 12:  please provide an up dated and exhaustive list of export duties as 
information is missing in the present table 12. 
Answer:
 
Ukraine provides updated information on export duties in Ukraine (for July 2004), which includes the 
duties on ferrous metal scrap. 
Export duties have been introduced on the basis of the following laws: 
− "On Export Duty on Live Cattle and Hides" No. 180/96- ВР of 7 May 1996; 
− "On Export Duty Rates for Seeds of Some Oil Crops" No. 1033-XIV of 
10 September 1999, as amended by Law No. 2555- ІІІ of 21 June 2001; and 
− "On Export Duty on Ferrous Waste and Scrap No. 216-IV of 24 October 2002. 
Please see Table 5. 
Table 5 - Export duties levied by Ukraine  
Duty rate 
Goods' HS 96 code Goods' HS 96 description in per cent of 
customs value minimum 
(€/ton) 
Live animals: 
01.02.90100 Live cattle: Young cattle weighing 350 kg and less; 
Cattle weighing over 350 kg 75 1,500 
01.02.90310 Heifers (female bovines that  have never calved), cows, 
bulls, bullocks, etc.  55 540 
01.04.10 Live sheep  50 390 
Oilseeds:  WT/ACC/UKR/118 
 Page 63 
 
 
 Duty rate 
Goods' HS 96 code Goods' HS 96 description in per cent of 
customs value minimum 
(€/ton) 
12 04.00900 Flax seeds, shatte red or non-shattered  17 - 
12.06.00900 Sunflower seeds, shattered or non-shattered  17 - 
12.07.99990 False flax seeds only  17 - 
Hides:  
41.01 Cattle hides  30 400 
41.02 Sheep or lamb skin  30 €1/animal 
41.03.90000 Pigskin only  27 170 
Ferrous waste and scrap: 
7204.1000 - Waste and scrap of cast iron - 30 
  - Waste and scrap of alloy steel: - 30 
7204.21 -- Of stainless steel - 30 
7204.2110 - - - Containing by weight 8% or more of nickel (ECSC) - 30 
7204.2190 - - - Other (ECSC) - 30 
7204.2900 - - Other  - 30 
7204.3000 -Waste and scrap of tinned iron or steel (ECSC) - 30 
  - Other waste and scrap: - 30 
7204.41 - - Turnings, shavings, ch ips, milling waste, sawdust, 
filings, trimmings and stampings, whether or not in 
bundles:  - 30 
7204.4110 - - - Turnings, shavings, chips, milling waste, sawdust 
and filings (ECSC) - 30 
  - - - Trimmings and stampings: - 30 
7204.4191 - - - - In bundles (ECSC) - 30 
7204.4199 - - - - Other  - 30 
7204.49 - - Other:  - 30 
7204.4910 - - - Fragmentised (shredded) (ECSC) - 30 
  - - - Other:  - 30 
7204.4930 - - - - In bundles (ECSC) - 30 
  - - - - Other:  - 30 
7204.4991 - - - - - In bundles (ECSC) - 30 
7204.4999 - - - - - Other  - 30 
7204.50 - Remelting scrap ingots: - 30 
7204.5010 - - Of alloy steel (ECSC)  - 30 
7204.5090 - - Other  - 30 
 
Question 136 
Paragraph 100 and table 13:  table 13 (minimum indicative prices) should be added in the 
annexes of the draft report.  Is the information contained in Annex 4 of 
WT/ACC/UKR/110/Add.2 still accurate or have changed occurred to the list of goods subject to 
minimum indicative prices? 
Answer:  
Minimum indicative prices change monthly.  The la test information can be found in Table 6 or on 
www.ukrdzi.com.ua. WT/ACC/UKR/118 
Page 64 
 
 
 Table 6 - Minimum indicative prices applied to exports (for July 2004)  
(USD/t, FOB ports of Ukraine)3 
Products Prices 
1.  Armature, ASTM standard4:   
 if supplied to the Middle East:   
 - code 7214:   
 - diameter up to 10 mm  275 
 - diameter over 10 mm  265 
 - code 7213 265 
 - code 7228:   
 - diameter up to 10 mm  275 
 - diameter over 10 mm  265 
 - if supplied to the USA:   
 - codes 7213, 7214, 7228:  275 
2.  Armature, other standards5:   
 - if supplied to the Middle East:   
 - code 7214:   
 - diameter up to 10 mm  255 
 - diameter over 10 mm  250 
 - code 7213 250 
 - code 7228:   
 - diameter up to 10 mm  255 
 - diameter over 10 mm  250 
3.  Rolled wire5 if supplied to the USA:   
 - diameter 5.5 mm  300 
 - diameter over 5.5 mm  300 
4.  Billet5 235 
 - if supplied to Egypt 245 
5.  Hot-rolled coil 4,5 315 
 - if supplied to Mexico, Canada, Argentina, India and Egypt  320 
 - if supplied to the USA  400 
6.  Hot-rolled sheet, thickness 8 - 50 mm 4,5 350 
 - if supplied to Latin America and India 350 
 - if supplied to the USA:  
 - A36  318.61 
 - A572  343.44 
 - A516  346.09 
 - API-2H  470.35 
 - A283  316.16 
 - ABC A/B  320.60 
 - A515  343.47 
7.  Carbamide  165 
8.  Ammonia  233 
9.  Live cattle6  
 - weight up to 350 kg/head  1,250–1,350 
 - weight over 350 kg/head  1,050–1,150 
10. Live rams and sheep6  
 - weight up to 30 kg/head  1,050–1,200 
 - weight over 30 kg/head  1,000–1,100 
11. Cattle skins wet-salted and otherwise pres erved, non-circumscribe d, automatic takeoff 6,7  
 - 1st class  1,550–1,650 
 - 2nd class 1,450–1,550 
 - 3rd class  1,315–1,400 
                                                      
3 Unless otherwise specified. 
4 In case of supplies of metal products with a chemical composition of higher quality the price may be 
higher. 
5 Ports of the Azov Sea, Zaporizhya, Dnipropetrovsk - US$5/MT discount. 
6 On FOB terms – Black Sea ports or DAF – Ukrainian border. 
7 For wet-salted skins, non-circumscribed, manual takeof f, prices according to the class are reduced to 
10 per cent respectively.  WT/ACC/UKR/118 
 Page 65 
 
 
 Products Prices 
 - 4th class  1,200–1,300 
 - Weight up to 10 kg, 1st class  2,450–2,850 
12.  Sheep skins, wet-salted (US$/piece)6  
 - 1st class  5.0 - 6.0 
 - 2nd class  4.0 - 5.0 
 - 3rd class  3.0 - 4.0 
 - 4th class  1.7 - 3.0 
13.  Swine skins wet-salted and otherwise pres erved, non-circumscribe d, automatic takeoff7  
 - 1st class  775 – 850 
 - 2nd class 725 – 770 
 - 3rd class  650 – 690 
 - 4th class  600 – 630 
14.  Flax seed, grinded or non-grinded6 360 
15.  Sunflower seed, grinded or non-grinded6 290 
16.  Red flax seed6 150 
17.  Electric power (USD/kWt/h) if supplied to Bu lgaria, Moldova, Poland, Ro mania, Slovakia, Czech 
Republic and Hungary.8 0.0205 
 
- Export restrictions 
Question 137 
Paragraphs 102, 103 on export licensing would fi t better in this section than in the previous 
section. 
Answer:  
Ukraine considers that paragraphs 102 and 103 fit better in the previous section rather than this 
section as they concern export licensing which bette r fall under export regulations chapter rather than 
export restrictions chapter. 
Ukraine understands this comment to be directed to the Secretariat. 
Question 138 
Paragraph 107:  Here it is written "ferrous metal scrap" but obviously "non-ferrous metal 
scrap" is meant. 
Answer:  
A technical mistake has been made in this Para graph. The words "ferrous metal scrap" will be 
replaced with the words "non-ferrous metal scrap". 
Question 139 
Paragraph 108 should be amended to include co mmitments to eliminate export duties (see 
above) and other export restrictions. 
Answer:  
[The representative of Ukraine said that on accession Uk raine will ensure that any export controls or 
export licensing requirement maintained or intr oduced are consistent with the relevant WTO 
provisions, including those contained in Articles XI, XVII, XX and XXI of the GATT 1994]. 
                                                      
8 On DAF terms – Ukrainian border. WT/ACC/UKR/118 
Page 66 
 
 
 Question 140 
Paragraph 102 indicates that Ukraine appeared to  apply export license fees not limited to the 
approximate cost of services rendered, thus not in compliance with Article VIII GATT.  Please 
describe the steps being taken to ensure complianc e with Article VIII GATT prior to accession. 
Answer:  
Ukraine will be revising such fee to reflect the ac tual cost of services rendered. Progress in this 
respect will be reported to working party members. 
Question 141 
Paragraph 103: please clarify what is meant by "t he additional fee was set to be eliminated on 
1 January 2005".  Which fee is it and when will it be eliminated? 
Answer:  
Paragraph 103 is referring to the customs cleara nce fee which was set to be 5 times higher when 
exporting scrap metal and ferrous a nd non-ferrous metal scrap. Note th at such additional fee will be 
eliminated as Decision No. 285 dated 7 Marc h 1998 become invalid on 1 January 2005. 
Question 142 
Are these the only laws that provide for export  duties? We understand that Ukraine applies an 
export tax of € 30 per ton on ferrous scrap.  There is also reference to nonferrous scrap duties. 
Could Ukraine update its list of export duties in Table 12 and provide information on other 
relevant laws? 
Answer:  
See the answer to Questions 134 and 135. 
Question 143 
Paragraph 102:  The Working Party report text notes that Ukraine's ad valorem  based fee for 
obtaining an export license that is inconsistent with Article VIII of the GATT. 
Why is this additional fee charged and when is it scheduled to be eliminated?  If it is scheduled 
to be eliminated, can this been done upon the date of accession? 
Answer:  
Please see the answer to Question 140. 
Question 144 
Paragraph 103:  This section appears to describe  either an export fee inconsistent with the 
provisions of Article VIII or a comprehensive export  tax of 0.1 per cent.  How is the level of this 
fee determined?  We would appreciate clarification from Ukraine on how it intends to address 
the issue.  WT/ACC/UKR/118 
 Page 67 
 
 
 Answer:  
Please see the answers to Questions 140 and 141. 
Question 145 
Concerning the "five times higher" export "fee" on ferrous and nonferrous scrap, is this in 
addition to the export duty of € 30 per ton? 
Answer:  
The "five times higher" export "fee" on ferrous and nonf errous scrap is in addition to the export duty 
of € 30 per ton.  Such additional fee will be eliminated as Decision No. 285 dated 7 March 1998 
become invalid on 1 January 2005. 
Question 146 (Statement) High export duties act as export barriers, and need reduction, per statement in 
paragraph 105, "Ukraine principally restricted ex ports through the application of export duties. 
..". 
Answer:
 
As regards mentioned statement in paragraph 105 there is a mistake of translation, it should be read 
as:  "Ukraine primarily regulates export through the application of export duties". 
Ukraine acknowledges that high export duties may act as export barriers, and need reduction. Just in line with this Ukraine is implementing policy of gradual reduction of export duty rates. 
- Quantitative export restrictions, including  prohibitions, quotas and licensing systems 
Question 147 
Paragraph 104:  What "precious metals" are subject to export restrictions?  Are any currently 
in place? 
Answer:
 
The following precious metals are subject to export quotation in Ukraine: 
− ores and concentrates of precious metals (code 2616); 
− colloidal precious metals; inorganic or orga nic compounds of precious metals, whether or 
not chemically defined; amalgams  of precious metals (code 2843); 
− silver (including silver plated with gold or pl atinum), unwrought or in semi manufactured 
forms, or in powder form (exc luding banking metals (code 7106); 
− gold (including gold plated with platinum), unw rought or in semi manufactured forms, or 
in powder form (excluding ba nking metals (code 7108); 
− platinum, unwrought or in semi manufactured  forms, or in powder form (excluding 
banking metals) (code 7110); and 
− waste and scrap of precious metal or of metal clad with precious metal (code 7112). WT/ACC/UKR/118 
Page 68 
 
 
 Question 148 
Paragraphs 105-106:  Ukraine's export proh ibition on nonferrous scrap is clearly WTO 
inconsistent.  We note that Ukraine claims just ification for the measure because it is temporary 
and designed to alleviate a serious short age of products critical to Ukraine. 
Ukraine maintains export restrictions on a num ber of different products. Please explain all 
restrictions and requirements on the export of ferrous and non ferrous scrap. 
Answer:  
In Ukraine ferrous scrap is subject to export duty (30 EURO per ton), and e xport of nonferrous scrap 
is prohibited. 
Question 149 Please clarify what products (including non-f errous metals and non-ferrous metal scrap) are 
subject to an export ban or prohibition, and wh at products (including ferrous scrap) are subject 
to export duties. 
Answer:
 
In Ukraine export of nonferrous scrap is prohibited. The list of export duties is presented in Table 5. 
Question 150 Also, please list what products a re subject to export licenses. 
Answer:
 
Among the goods subject to export licensing in Ukraine are the following: 
− ores and concentrates of precious metals; 
− colloidal precious metals; inorganic or orga nic compounds of precious metals, whether or 
not chemically defined; amal gams of precious metals; 
− silver (including silver plated with gold or pl atinum), unwrought or in semi manufactured 
forms, or in powder form  (excluding ba nking metals; 
− gold (including gold plated with platinum), unw rought or in semi manufactured forms, or 
in powder form (excluding banking metals; 
− platinum, unwrought or in semi manufactured  forms, or in powder form (excluding 
banking metals); 
− waste and scrap of precious metal or of metal clad with precious metal; 
− products, which may contain ozone-depleting substances a nd are imported in aerosol 
package; 
− products which may contain ozone-depleting substances; 
− ozone-depleting substances; 
− optical polycarbonates for production of discs for laser reading systems; 
− categories 2, 2(a), 4, 5, 6, 7, 8, 12, 13, 15 , 26/27, 29, 83, 117 of textile products to EU; 
− categories 435, 442, 444, 448 of textile products to USA; 
− rolled flat metal, alloyed and plain steel to EU; and 
− certain types of rolled flat metal from carbonic steel, hot rolling, without electrolytic or 
other metal covering, not in rolls, more than 150 mm wide to USA.  WT/ACC/UKR/118 
 Page 69 
 
 
 Question 151 
If there are products that are subject to both export licenses and export duties, please stipulate 
what they are. 
Answer:  
There are no products in Ukraine that are subject  to both export duties and export licenses. 
Question 152 
Please explain if licenses for export  are issued on an automatic ba sis, or part of a program to 
control exports. 
Answer:  
Export licensing has no restrictive nature but used in purposes of exports' control. 
Question 153 
Paragraph 107:  There seems to be a confus ion between ferrous and nonferrous scrap 
restrictions. We had understood that only export  duties were applied to ferrous scrap, not 
quantitative restrictions.  We now understand that  licenses for exports of ferrous scrap were 
suspended by the Government of Ukraine in February 2004 (Metal Bulletin, 11 February 2004), 
effectively halting exports of scrap. 
Please comment on this report and explain what  licensing procedures exist for ferrous scrap 
exports.  Please update the report. 
Answer:  
Export operations with ferrous scrap do not require licensing in Ukraine. 
According to the Law of Ukraine "On scrap metal"  export contracts of metal scrap are subject to 
registration according to the procedure determined  by the Cabinet of Ministers of Ukraine. 
In February 2004 registered and ongoing export contr acts of ferrous scrap had been reregistered. 
During this period customs clearance of the scrap  deliveries was carried out on the reregistered 
contracts. 
According to the statistic data ferrous scrap expor t was not suspended.  In January 2004 export of 
scrap metal constituted 151.3 thousand tons, in February – 164.7 thou sand tons, in March – 
132.5 thousand tons, in April – 216.5 thousand tons. 
Question 154 
The ban on nonferrous scrap has been in place for five years.  How much longer does Ukraine 
understand that this "temporary" measure will remain in place? 
Answer:  
Having good understanding of the issue, Ukraine is ma king effort to resolve the issue, i.e. is giving 
due regard to possible approaches and practical steps. WT/ACC/UKR/118 
Page 70 
 
 
 - Export subsidies 
Question 155 This section requires some description, if only to confirm that there are no such measures in 
place. 
Answer:
 
Ukraine confirms that no such measures are in place. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies Question 156 
Paragraph 112:  according to our understandi ng, the VAT and import duty exemptions on 
materials/equipment have not yet been removed (cf our comments on paragraph 67). 
Answer:
 
Currently, the question of removing VAT and import  duty exemptions for materials/equipment is 
being worked on. 
There is the VAT and import duty exemptions on material, equipment and components importation to 
be used for shipbuilding purpose, but mentioned above VAT preferences are currently suspended by 
the Law of Ukraine "On State Budget of Ukraine". 
Moreover they are subject to revision in terms of conformity with the Law "On the State budget" for 
the following year and may be suspended. 
Question 157 
Paragraph 115:  for cars, subsidies in the form  of deferred tax payments until 2008 are foreseen. 
In our view this legislation provides tax exempt ions (rather than deferrals) which are de facto 
discriminatory since they apply to only two pro ducers.  Could you confirm that new legislation 
approved in March 2004 will extend import duty ex emptions to new producers establishing in 
Ukraine, but that exemptions from VAT will re main discriminatory?  Could you also confirm 
that in order to qualify for the import duty exemption, the products must be produced 
according to rules requiring 50 per cent of value to be added in Ukraine? 
Answer:  
Ukraine's regime of support for automobile pr oduction varies according to the date on which 
investment projects in the industry were approved. 
Investment projects approved before 1 January 2004. 
Investment projects approved before 1 January 2004 are governed by the Law of Ukraine "On 
Stimulation of Automobile Production in Ukraine" No .535 of 19 September 1997.  This law originally 
specified that the special privileg es with respect to direct and indirect taxes and customs duties were 
restricted to firms having registered with the Cabinet of Ministers an investment program.  This investment program had to provide for a step-by- step increase of localization of production of  WT/ACC/UKR/118 
 Page 71 
 
 
 automobile components to not less than 70 per cent of its estimated value by the end of the tenth year 
starting from implementation of the investment program. 
This local content requirement was removed by  the Law of Ukraine "On Amending the law "On 
Stimulation of Automobile production in Ukra ine"" No.2779-II, of 15 November 2001, which 
amended the relevant tax laws to remove the require ment of local content. (Note: current data bases 
may contain versions of Law No. 535, "as amende d" that retain-erroneously-the language on local 
content with respect to application of a zero rate of VAT. However, the deletion of local content can 
be confirmed by referring to Article  11.19 of the Law on Value Added). 
The Law of Ukraine "On the State Budget of Ukraine for the Year 2004" No.1344-IV of 
27 November 2003 suspended for 2004 VAT privileges for domestically produced automotive 
vehicles. 
It should also be noted that the Law of Ukraine "On Rates of Excise Duty on Motor Vehicles" 
No.216/96 of 24 May 1996 exempts domestically produced vehicles from the excise tax, provided that the vehicles are the product of firms producing annually more than 1,000 units. 
Thus, Ukraine's present support to automotive invest ment approved before 1 January 2004 does not 
violate Article 3 of the Agreement on Subsidies a nd Countervailing Measures.  However, there is a 
TRIM. 
Investment Projects Approved in 2004-2008. Projects approved in 2004-2008 are governed by  the Law of Ukraine "On Development of the 
Automobile Industry of Ukraine" No.1624-IV of 18 March 2004, which came into effect in 
May 2004. 
This law provides state support to enterprises produc ing automobiles, motorcycles and spare parts. 
Such enterprises are defined as legal entities resident in Ukraine that, along with other automobiles, 
motorcycles and spare parts, produce automobiles, mo torcycles and spare parts originating in Ukraine. 
An automobile, motorcycle or spar e part originates in Ukraine if th e value of inputs originating in 
other countries or of unknown origin is less than 50 per cent of the ex-factory price set by the 
producer. 
The benefits provided to a qualifying producer are th e following:  exemption from payments of import 
duties for goods and component parts used for co nstruction, modernizati on and re-equipment of 
production facilities; corporate profit tax exempti ons for the portion of profits reinvested; and 
exemptions from payment of import duties on inputs used to produce automobiles, motorcycles and 
spare parts originating in Ukraine. 
No exemption from VAT is contained in the Law. According to the Law, these bene fits expire on 31 December 2008. 
The Law of Ukraine "On Rates of Excise Duty on Motor Vehicles" No. 216/96 of 24 May 1996 
exempts domestically produced automobiles and mo torcycles from the excise tax, provided that the 
vehicles are the product of firms producing an nually over 1,000 automobiles or over 1,000 
motorcycles. 
With regard to projects approved in 2002-2008, there is non-compliance with Article 3 of the 
Agreement on Subsidies and Countervailing Measures; there is also a TRIM. WT/ACC/UKR/118 
Page 72 
 
 
 Ukraine refers to Article 5 of the Agreement on Tr ade-Related Investment Measures, and to Articles 
28 and 29 of the Agreement on Subs idies and Countervailing Measures, and informs the Members of 
the Working Party that it is seeking a transition pe riod until end 2008 with respect to the above non-
compliant measures. 
Question 158 As acknowledged in paragraph 111, a lot of work will be necessary  to address Ukraine's 
industrial subsidies.  We appreciate the additi onal information provided in WT/ACC/UKR/116 
and we hope that some of it will find its way into the report. 
Answer:
 
Ukraine takes note and understands that the sec ond comment is directed to the Secretariat. 
Question 159 
Paragraph 118:  According to our understanding, the law of Ukraine "On Performing an 
Experiment in Housing Construction on th e Basis of Kyivmiskbud Holding Company" 
No. 1694-III was postponed as regards the part on  VAT taxation by the 2004 budget law.  Please 
clarify the situation. 
Answer:  
Paragraph 49 of Article 80, the Law "On the Stat e Budget of Ukraine for the Year 2004" No.1344-IV 
of 27 November 2003 has suspended during 2004 3.2.11 of the Law "On Value Added Tax" 
No.168/97-VR of 3 April 1997 which provided that "t he provision by authorized banks of services for 
fiduciary management of bank ma nagement funds in accordance with the Law "On Amending the 
Law "On Performing and Experiment  in Housing Construction on the basis of Kyivmiskbud Holding 
Company" No.3044-III of 7 February 2 002" were not subject to the tax. 
Question 160 
Paragraph 120:  this paragraph needs to  be amended to include commitments. 
Answer:  
[Ukraine would like to take occasion of the three year transitional period granted on the basis of 
Article 28.1(b) of the ASCM to bring domestic re gulation for automotive industry in compliance with 
the WTO provisions.] 
Question 161 
Document WT/ACC/UKR/114:  The answer to Qu estion 67 mentions the draft law "on state 
budget of Ukraine for 2004" introducing amendmen ts for certain provisions of "law on VAT" 
related to subsidies expected to be adopted in early 2004.  Has this law already been adopted 
and are these amendments available in English? 
Answer:  
The law of Ukraine "On state budget of Ukraine fo r 2004" has been effective since 1 January 2004 
and provide for suspension of privileges given to shipbuilding, automotive and aircraft construction 
enterprises by the law "on VAT".  WT/ACC/UKR/118 
 Page 73 
 
 
 The current status of policies in the field of indu stry subsidies may be found in the Notification on 
industrial subsidies submitted to th e WTO Secretariat in April 2004. 
Question 162 
Document WT/ACC/UKR/116:  The tax benefits  described for local automobile producers 
(minimum of 50 per cent local input and certain production stages done locally) appear to 
constitute a local content requirement not comp atible with Article 3 ASCM and Article 3.5 
GATT.  This should be brought into full WTO conformity upon accession. 
Generally, we suggest that Ukraine's draft subsid y notification be annexed to the draft Working 
Party Report. 
Answer:  
Please see the response to Question 157. 
Question 163 
It is our understanding that within the Priori ty Areas, the incentives are based upon "special 
regime investment activity" or investments in "priority economic activities."  Could Ukraine please explain what types of investments or industries qualify for the incentives. 
Answer:
 
Enterprises from any sector may invest in a priority  territory. Special regimes of investment activity 
(incentives) are granted to business entities (investor s) when they implement investment projects in 
the priority types of economic activity, the list of which is (as well as the mi nimum investment project 
cost) determined by a separate Resolutions of the Cabinet of Ministers with respect to each separate 
priority territory.  References about these Resolutions  of the Cabinet of Ministers please see at the 
document UKR116, table on page 4.  See also table below: 
 Investment Project Co st/Economic activities 
Priority Territories in 
Chernihiv Oblast At least: 
 
- US$ 200,000 – in agriculture, food-proce ssing and agricultural produce processing 
industries, light industry, pulp and pape r industry, wood processing, furniture 
production, health protection and education; 
- US$ 300,000 – in construction, tour ist and recreation industry; and 
- US$ 500,000 – in extractive industry, mach ine and equipment building, non-metal 
mineral products, chemical production, transport. 
Volyn Oblast At least US$ 200,000 – in all priority business activities 
The city of Kharkiv At least: 
 
- US$ 3 million – in metallurgy and metal working, machine and equipment building, 
building of electrical, electronic and transport equipment; 
- US$ 1 million – in producing of electricity,  gas, water, coke, other non-metal mineral 
products, in transport, communications, in metal waste and scrap working. 
- US$ 700,000 – in construction, sanitation, s cavenging and waste working, in chemical 
production, furniture, pulp and paper industry, printing industry; and 
- US$ 500,000 - in food-processing and agricu ltural products processing industry, textile 
and clothing industry, tanning and shoe manuf acturing industry, in health protection and 
education, in public assistance and in resear ch and development in natural and technical 
sciences. WT/ACC/UKR/118 
Page 74 
 
 
  Investment Project Co st/Economic activities 
Zhytomyr Oblast At least: 
 
- US$ 200,000 - in agriculture, food-processing industry, textile industry, pulp and paper 
industry, wood processing, furniture productio n, clothes and furs manufacturing, health 
protection and education; 
- US$ 300,000 – in construction; and 
- US$ 500,000 – in extractive industry, m achine and equipment building, mineral 
material products, chemical  production, transport. 
the City of Shostka, 
Sumy Oblast At least: 
 
- US$ 200,000 - in food-processing industry and agricultural products processing, wood 
processing and wood worki ng, health protection; 
- US$ 500,000 – in construction, waste working,  producing electricity by thermoelectric 
power station and in distribution of heat; and 
- US$ 1 million – in machine and equipment building, powder metallurgy and chemical 
production. 
Autonomous Republic of Crimea At least: 
 
- US$ 100,000 – in activity for protection of hist orical and natural re sources, research and 
development in information infrastructure,  culture and sport, consumer services, 
territory cleaning, forestry, production of sport and fancy goods, toys, souvenirs; 
- US$ 200,000 - in health protection and public assistance, in agriculture, fish industry, 
food-processing and agricultural produce proc essing industries, textile industry, wood 
working, furniture production; 
- US$ 500,000 – in activity of health and reso rt centres, hotel and restaurant business, 
transport and communications, in construction,  waste working, tourism services, rest 
and entertainment services; and 
- US$ 1 million – in extractive industry, processing industry, electricity, gas and water 
production. 
Zakarpatska Oblast At least US$ 200,000 – in all priority business activities 
Luhansk Oblast At least: 
 
- US$ 500,000 - in agriculture, food-processing and agricultural produce processing 
industries, health protection; 
- US$ 700,000 – in construction and transport industry; and 
- US$ 1 million - in extractive industry, electrical energy and coke production, chemical 
production and machine building. 
Donetsk Oblast At least: 
 
- US$ 1 million (US$ 250,000 – for small enterprises) - in all priority business activities 
 
Question 164 Could you please explain the notation in Ta bles 14 (a) and (b) for the duration for the 
exemptions within the Special Economic Zones for the following: exemption from income tax, 
exemption from taxation on investments and exemption from payment of VAT. 
Answer:
 
The notation "+" indicates that the benefit in avai lable throughout the life of the investment. The 
notation "-"indicates that the benefit identified in th e column heading is not available.  The notation 
"+ (two years) year three – year five – 50 per cent of existing rate" indicates that the benefit is available in full for the first two years of the invest ment and that the tax in question will be levied at 
one half the usual rate for the following three year s.  Thereafter the normal tax is paid.  The notation 
"rate – 20 per cent" indicates that the profit tax is levied at the rate of 20 per cent.  WT/ACC/UKR/118 
 Page 75 
 
 
 For example: 
Name of FEZ/Form of 
Assistance Special 
Customs 
Zone Regime Exemption 
from income 
tax Exemption 
from taxation 
of investments Exemption 
from Import 
Duty and VAT Exemption from land 
tax 
Port Krym + rate – 20% + - + (5 years) 
 
Question 165 
Could the Ukraine please explain what qua lifies as an "eligible shipbuilder?" 
Answer:  
The Cabinet of Ministers approves the list of ship bu ilding enterprises that receive subsidy.  At that 
the results of enterprises activity for previous years is taken into consideration.  The current approved 
list of enterprises appears in Cabinet of Ministers of Ukraine Resolution of 16 June 2000, No. 978 
(including changes and amendments introduced by th e Cabinet of Ministers of Ukraine Resolutions as 
of 21 August 2001, No. 1106 and as of 27 May 2002, No. 696).  Please see this list in the document 
WT/UKR/110/Add.2, Annex 9. 
Question 166 
It is our understanding that the VAT exemptio n is based on the use of "certain domestic 
inputs."  We would like to remind the Ukraine that import-substitution subsidies in any WTO 
Member States are prohibited under Article 3 of the SCM Agreement. 
Answer:  
Services rendered by Ukrainian d esign and development enterprises to  eligible shipbuilders were 
exempted from VAT. It is our understanding that services are not covered by Article 3 of the SCM 
Agreement. 
Moreover this measure was withdrawn by the Law of Ukraine "On the State Budget of Ukraine for 
2004" as of 27 November 2003, No. 1344-IV excludi ng enterprises that had signed contracts before 
entering into force by the Law No. 1344-IV and ha d received advanced payments by these contracts 
on more than 20 per cent from the contract sum. 
Question 167 
As stated in the working document, the Law "On Measures of State Support for the Ship-
Building Industry in Ukraine" provides deferre d tax payments to the shipbuilding industry 
until 11 January 2005.  Does the Ukraine have plans to continue the support after 11 January 2005?  Will there be benefits that conti nue after this period?  If so, please provide 
the details of these subsidy benefits. 
Answer:
 
The Law "On Measures of State Support for the Ship-B uilding Industry in Ukraine" provides deferred 
tax payments to the shipbuilding industry until 1 January 2005. 
Any changes will be provided to the WTO memb ers and will be added the Draft Notification on 
industrial subsidies. WT/ACC/UKR/118 
Page 76 
 
 
 Question 168 
Does Ukraine have plans to either phase out this program or make it consistent with the SCM 
Agreement?  If so, please explain what steps are being taken. 
Answer:  
[Ukraine would like to take occasion of the transitio nal period granted on the b asis of Article 28.1(b) 
of the ASCM to bring domestic regulation for automotive industry in compliance with the WTO 
provisions.] 
Question 169 
It is our understanding that the Ukraine's au tomotive incentives are based upon the use of 
domestic goods over imported goods.  Could th e Ukraine please explain how this program is 
consistent with Article 3 of the SCM Agreement? 
Does the Ukraine have plans to either phase out th is program or make it consistent with the 
SCM Agreement? If so, please explain what steps are being taken. 
Answer:  
Please see the response to Question 157. Question 170 Under the Law "On Stimulation of Production of Motor Cars in Ukraine" and the Law "On 
State Support of Aircraft Construction Industry in Ukraine," are there any steel related subsidies?  If so, please provide details of those subsidies. 
Answer:
 
In accordance to the Law "On Stimulation of Produc tion of Motor Cars in Ukraine" and the Law "On 
State Support of Aircraft Construction Industry in Uk raine" no subsidies related to steel are provided. 
Question 171 
Does the support for the coal mining industry have an end date?  If so, please provide the 
details.  Does the Ukraine provide any type of pri ce support or intervention for the eligible coal 
mining industries?  In this regard, please di scuss how any below market prices in the coal 
mining sector affect the export performance of this industrial sector. 
Answer:  
The State Program "Ukrainian Coal" (approved by the Cabinet of Ministers of Ukraine Resolution 
No. 1205 on 19 September 2001) has been aimed at  advancement of effectiveness of coal mines 
functioning and attainment the coal volumes extracted  to satisfy the needs of national economy.  The 
duration of the Program has not yet been defined.  It must be kept in mind that this is a very sensitive 
matter of both social and economic importance for Ukraine. 
Question 172 
(Statement) We seek a commitment from Ukraine that from the date of accession it will not 
maintain subsidies, including export subsidies which meet the definition of a prohibited subsidy,  WT/ACC/UKR/118 
 Page 77 
 
 
 within the meaning of Article 3 of the SCM Agreement, and that it will not introduce such 
prohibited subsidies in the future.  In this regar d we ask Ukraine to commit to ensuring that its 
export financing (industrial products) and other export promotion policies will be operated in 
conformity with WTO provisions, including the SCM Agreement. 
Answer:  
Please see the answer to Question 157. 
- Technical barriers to trade, sa nitary and phytosanitary measures 
Question 173 Paragraphs 123-124:  We request from Ukraine the inclusion of more detailed information in 
the Working Party Report concerning the conformity assessment procedures.  More 
specifically, in paragraph 123 in the TBT Chapter the contents referring to the six certification 
schemes should be elaborated and the relation to the modular approach in paragraph 124 explained. 
Answer:
 
At present, general requirements as to procedures for certification of products, processes and services 
in the Certification System "UkrSEPRO" are set out in Ukraine's standard DSTU 3413-96.  The 
scheme (model) for certification of applied-for prod ucts is determined by the certification body as 
agreed with an applicant prior to commencement of certification works.  The choice of the scheme 
depends on the type of products, their quantit y, manufacturing conditions and other data. 
Recommended certification schemes (models) are set forth in table 7. 
In order to expand possibilities for producers to select certification procedures, in 2000 
Derzhspozhyvstandart introduced, pursuant to inte rnational practices, an additional scheme "type 
certification", whereby a conformity certificate for products, which are serially manufactured, is issued on the basis of positive resu lts of an analysis of submitted documents and tests thereof, without 
direct on-site inspections of the producer's plant (manufacturing).  In this respect, the certification 
body carries out technical supervision periodical check tests of product samples that are taken from a 
supplier.  A conformity certificate with a term of  up to one year is issued under this scheme.  
DSTU 3413-96 was accordingly amended for certain types of products that are serially manufactured.  
Here, the term of a conformity certificate has been increased up to two years under the plant (manufacturing) inspection scheme and up to three years under the plant (manufacturing) attestation scheme.  In addition, DSTU 3413-96 and DSTU 3419-96 were am ended to increase the term of 
conformity certificates up to five years under the scheme involving quality system certification.  It 
should be noted in this respect that, if an applicati on for certification is filed after the end of the term 
of the conformity certificate, results of technical  supervision undertaken during the term of the 
previous certificate will be taken into account.  Such practice complies with practices of foreign 
certification bodies, such as TUV-Reiland, API, Ver itas, SGS etc., which ce rtify products for export 
in Ukraine.  
 WT/ACC/UKR/118 
Page 78 Table 7 - Recommended certificati on schemes (models) in Ukraine  
Products to be 
certified Plant 
(Manufacturing) 
Inspection Plant 
(Manufacturing) 
Attestation Certification 
(Assessment) of 
the Quality 
System Tests for Certification Pur poses Technical Supervision Documents that are issued by the 
Product Certification Body 
Conducted Not conducted Not conducted Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body  Conducted in the manner specified 
by the certification body, and 
includes inspections of 
manufacturing and check tests of 
product samples  Conformity certificate with a term 
of up to 2 years, which is 
determined by a licensing 
agreement  
Not conducted conducted Not conducted Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body Conducted in the manner specified 
by the certification body, and 
includes inspections of 
manufacturing and check tests of 
product samples Conformity certificate with a term 
of up to 3 years, which is 
determined by a licensing 
agreement, taking into account the 
term of the manufacturing 
attestation  Products that are 
serially 
manufactured 
Not conducted Not conducted Conducted by 
the authority for 
system quality 
certification  Conducted in the manner specified 
by the certification body Conducted in the manner specified 
by the authority for system quality 
certification Conformity certificate with a term 
of up to 3 years, which is 
determined by a licensing 
agreement, taking into account the 
term of a certificate for the quality 
system  
Single product  Not conducted Not conducted Not conducted Conducted on each article  No t conducted Conformity certificate for e ach 
article  
Shipment of 
products 
(articles) Not conducted Not conducted Not conducte d Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body Not conducted Conformity certificate for a 
shipment of products (articles) with 
indication of the amount of the 
certified shipment 
Products that are 
serially 
manufactured Not conducted Not conducted Not conducte d Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body Conducted through tests of product 
samples with the periodicity, in the 
manner prescribed by the 
certification body. If necessary, an 
inspection of manufacturing is 
conducted Conformity certificate with a term 
that is set by a licensing agreement 
with a term of up to 1 year  WT/ACC/UKR/118 
 Page 79 
 
 
 Question 174 
Paragraphs 124 and 125:  Certificates issued in  the framework of the UkrSEPRO Certification 
system rely on tests performed by independent te sting laboratories.  According to the provisions 
of the UkrSEPRO, tests of imported products must  be carried out by test laboratories (centres) 
accredited in the UkrSEPRO System unless there are agreements on mutual recognition of test 
results concluded. 
The National Accreditation Agency of Ukraine is an affiliate member of the International 
Laboratory Accreditation Cooperation (ILAC).  As such it had to declare its intention to 
operate its accreditation programs in complian ce with the requirements set out in relevant 
standards established by appropriate internatio nal standards writing bodies.  The aim of the 
ILAC cooperation is to increase international acceptance of test results of laboratories 
accredited by ILAC member bodies. 
Can, therefore, foreign labora tories accredited by an ILAC member body, carry out tests 
required for obtaining the UkrSEPRO-certific ate or must foreign laboratories under any 
circumstances be accredited a dditionally in the Ukraine? 
Answer:  
Once the National Accreditation Agency of Ukrain e becomes a Member of ILAC, Ukraine will work 
toward increasing acceptance of test results of laboratories accredited by ILAC member bodies. 
Question 175 
Paragraph 126:  it is said that in case of mandatory certification only a conformity assessment 
would be needed for imported goods and no in spection would be needed.  This must be 
elaborated. 
Answer:  
In case of mandatory certification requirements,  only a conformity certificate is required to 
demonstrate conformity with technical regulations.  Importers can obtain serial conformity certificate 
prior to importing a good subject to mandatory certifi cation.  A serial conformity certificate is valid 
for five years based on selected scheme of certification.  Goods imported under such certificate are 
not tested at the border unless there is clear evid ence that goods were damaged during transportation. 
In case an importer did not seek to have a serial conformity certificate, a Certificate of conformity 
may also be obtained upon importati on of goods.  In such case, testing upon importation is required in 
order to issue certificate of conformity for the specific shipment. 
Question 176 
Producers should be given a choice between diffe rent conformity assessment procedures to meet 
legal requirements depending on the risk to consumers, workers and others.  Options should include manufacturers' declaration for low to medi um risk products.  For higher risk products, 
where third party certification is demonstrably  necessary, ISO 9000 quality certification should 
constitute an alternative to costly and time-consuming plant inspections. WT/ACC/UKR/118 
Page 80  
 
 Answer:
 
Producers currently have the choice from among f our different types of conformity assessment 
schemes: 
− analysis of production documents  and technical supervision; 
− inspection of production; 
− attestation of production; and 
− certification or assessment of compliance with ISO 9000. 
During the process of harmonization of Ukraine st andards and technical re gulations, Ukraine will 
consider recognition of manufacturer's declaration for low risk products. 
Procedures of the UkrSEPRO certification system allow carrying out certification testing at producing 
enterprises with the use of its testing equipmen t and measuring instruments, which meet the 
established requirements in the event the tested pro ducts are of large size or non-transportable, or 
require assembly at the site of use, or re quire the use of unique testing equipment. 
Question 177 More information about the procedures for ma rking of goods would also be welcome. 
Answer:
 
Marking is the responsibility of the producers. Ma rking requirements are specified in the Law on 
Consumers' rights protection, the Law on Quality and Safety of Food and Food Raw Materials, the 
Law of Ukraine on State Regulation of Production and Turnover of Ethyl Alcohol, Cognac and Fruit 
Alcohol, Alcoholic Beverages and Tobacco Products.  It is prohibited to sell or use domestic or 
imported goods which do not comply with the marki ng requirements.  The Department of Consumer 
Protection under Derzhspozhyvsta ndart supervises marking requirements through random inspection 
at retail level. For special dietary food products, pr oducers and importers must obtain the consent of 
the Ministry of Health of Ukraine. 
Question 178 We welcome the measures taken to reduce the list of products subject to compulsory 
certification. More detailed information about his process should be included in the Working Party Report, as well as the intentions of Ukraine to review the list with a view to removing remaining lower risk products (e.g. cocoa be ans, coffee beans, roasted and grind coffee, 
powdered flavours) 
Answer:
 
The List of categories of goods subject to mandatory  certification is continuously being revised to 
reduce the number goods subject to mandatory certifica tion.  The List was last revised in 2002 where 
30 categories of goods, presenting low risk to consumer s, were deleted from different sections of the 
List.  The most recent list was adopted in Order of the State Standards Committee No. 498 of 
30 August 2002 and contains 39 br oad categories (amounting to ar ound 700 line items under various 
digit levels of the tariff nomenclature).  In 2004 , Ukraine plans to eliminate low risk goods under 
various remaining categories.  WT/ACC/UKR/118 
 Page 81 
 
 
 Question 179 
A specific reference should be made in the Working Party report to the maximum period of 
time needed for the conformity assessment procedures, respecting the TBT principle of 
expeditiousness, and to the validity period of th e certificates issues, namely if there is need for 
re-certification after a limited period of time. 
Answer:  
Pursuant to product certification procedures, the dura tion of certification works is agreed between the 
certification body and an applicant, taking into acc ount the certification scheme.  In order to reduce 
the duration of certification works and to lower thei r cost, it is permitted to issue a new certificate for 
serially manufactured products, instead of the certificate that lost effect, on the basis of results of the 
technical supervision carried out during the te rm of the previous conformity certificate. 
The specific certification scheme (model) is determined by the certification body, which must 
obligatorily take into account proposals from an app licant.  In this respect, specifics of manufacturing, 
tests, supply and use of particular products, possi ble expenses of the producer and results of the 
review and analysis of materials submitted by the applicant (taking into acc ount the applicant's wish 
about the choice of the certification scheme), are taken into consideration. 
For details see Table 7. There is need for re-certification after the validity of the certificates is expired. 
Question 180 
We also request that Ukraine provides informatio n about the steps made so that the conformity 
assessment fees are published and proportional to the services rendered in accordance with 
GATT Article VIII and to ensure that all agenci es (such as customs inspection at the border) 
are fully aware of technical regulations for impo rts and carry out verifications of certificates 
and documents expeditiously. 
Answer:
 
Requirements for products to be certified are laid down by national standards for specific types of 
products. 
In order to ensure impartiality, transparency  and accessibility of certification procedures in 
UkrSEPRO, the cost of certification works is calcu lated pursuant to the Rules on Determinations of 
the Cost of Works to certify Products and Servi ce, approved by Order No. 100 of the Committee, 
dated 10 March, as registered with the Mini stry of Justice of Ukraine on 31 March 1999 under 
No. 194/3487. The Rules prescribe maximum norms fo r labour-intensiveness of certification works in 
the State Certification System "UkrSEPRO". There is no list of fees. Fees may be deferent in every 
separate case and should be calculated pursuant to th e Rules on Determinations of the Cost of Works 
to certify Products and Service. The Rules on Determ inations of the Cost of Works to certify Products 
and Service was published in Official Viysnyk of Ukraine No. 14, 1999. 
Question 181 
We request that a specific reference is made in  the Working Party Report to the transparency 
and predictability measures taken in the dra fting of technical regulations and in the 
establishment of conformity assessment procedures. WT/ACC/UKR/118 
Page 82  
 
 Answer:
 
Draft conformity assessment procedures are posted on  the website of the State Committee of Ukraine 
in Technical Regulations and Consumer Policy (D erzhspozhyvstandart).  By the date of accession, 
Ukraine will implement in its national legislati on the Code of Good Practice (Annex 3 of the TBT 
Agreement) as well as commenting requirements under Item 6 of Annex 2 and Ar ticles 2, 3, 5, and 7 
of the TBT agreement; establishing, thus, a form al procedure for ensuring that public comments 
received on proposals are given fair consider ation before a final rule is adopted. 
Question 182 
Paragraph 127: We request Ukraine to report on  a regular basis on pr ogress towards setting up 
a fully functioning "enquiry point", as requested by the TBT (and SPS) Agreement. 
Answer:  
Please see answer to Question 204. 
Question 183 
We request explanation from Ukraine about the n eed for existing multiple testing requirements 
by different public authorities, especially when both sanitary and/or veterinary requirements 
and certification requirements are requested for th e same products, as well as intentions to 
dismantle these requirements. 
Answer:  
With a view of eliminating the duplication of superv isory and controlling functions in central agencies 
of executive power, there was adopted the Law of Ukraine "On Amendments to certain Legislative 
Acts of Ukraine" (dated 20 February 2003, u nder No. 540), which amended the Law of Ukraine "On 
Veterinary Medicine", the Decree of the Cabinet of Ministers of Ukraine "On Standardization and 
Certification" and the Decree of the Cabinet of Ministers of Ukraine "On State Supervision of Compliance with Standards, Norms and Rules, and Sanctions for Violations thereof".  These 
amendments delineated State supervision by require ments for products pursuant to the competence of 
a central agency of executive power, as well as stipulat ed that results of tests carried out by designated 
laboratories (centres) would not require in futu re any confirmation by other accredited testing 
laboratories (centres).  No second tests of such produc ts by specified character istics are to be carried 
out, except for cases when the inauthenticity of test results has been uncovered pursuant to law.   Food 
raw materials and food products of animal origin sh all be certified after veterinary and/or sanitary 
expert examinations have been carried out. 
Question 184 
Finally, we would welcome further information in the Working Party report about the 
intentions regarding accreditation of conformity  assessment bodies, namely about the possibility 
of accrediting private bodies. 
Answer:
 
Ukraine can accredit conformity assessment bodies in cluding private bodies which are residents of 
Ukraine.  WT/ACC/UKR/118 
 Page 83 
 
 
 Question 185 
A commitment paragraph needs to be added to this section. 
Answer:  
Please see the answer to Question 173. 
Question 186 
We thank Ukraine for the information provided, a nd for the strong efforts it has made over the 
past few years to reform its standardization system. 
We would be interested in a update on activity, pa rticularly in the area of ensuring that all 
mandatory requirements applied to imports meet WTO requirements prior to accession. 
Answer:  
The List of categories of goods subject to mandatory  certification is continuously being revised to 
reduce the number goods subject to mandatory certifica tion.  The List was last revised in 2002 where 
30 categories of goods, presenting low risk, were deleted from different sections of the List.  The most recent list was adopted in Order of the State Standards Committee No. 498 of 30 August 2002 and 
contains 39 broad categories (amounting to around 700 line items under various digit levels).  In 
2004, Ukraine plans to eliminate low risk goods under various remaining categories. 
Question 187 
Could Ukraine provide information on the status  of the draft Law On Amendment of the Law 
on Metrology and Metrology Activity and what subs tantive impact it will have on Ukraine's 
ability to comply with the WTO TBT obligations. 
Answer:
 
The draft Law of Ukraine "On making amendmen ts to the Law of Ukraine 'On metrology and 
metrological activity'" was adopted by the Parliament on 16 June 2004.  The Amendments do not contradict the principles of the WTO TBT agreemen t and primarily introduce modern international 
terms and principles in the field of metrology.  Tr anslation of mentioned La w will be made available 
to working party as soon as possible. 
Question 188 We wish to reiterate our concern that statements  in the Working Party report appear to equate 
adoption and/or compliance with EU standards and regulations with compliance with the WTO 
TBT obligations.  While that may be true in some ca ses, it is not true in all.  In areas where EU 
technical regulations have proven to be contrary to WTO provisions, we expect that Ukraine will not adopt them. 
In addition, when we met plurilaterally in Ma rch 2003, some Members stressed that Ukraine's 
adoption of the European Union's standards and technical regulations did not assure them of 
WTO compliance.  Ukraine at that time promis ed to provide further information on how it 
decides whether to develop a mandatory tec hnical regulation and how it ensures such an 
approach does not result in an unnecessary barrier to  trade.  It is unclear from the existing 
documentation as to whether information to this effect has been provided. WT/ACC/UKR/118 
Page 84  
 
 Answer:
 
The Draft Report indicates precisely that "Priority w as given to harmonization with international and 
European standards and, in adopting EC standard s as national standards, preference was given to 
those EC standards that were identical to interna tional standards."  Ukraine has no intention to adopt 
any EC standards/technical regulations th at contradict international standards. 
Ukraine plans to introduce changes and amendmen ts to the Law on Standardization No. 2408-III 
dated 17 May 2001 to fully reflect the requirement s under the TBT Agreement.  As such, technical 
regulations will be adopted in Ukraine in accord ance with Article 2 of the Agreement on TBT. 
Ukraine will fully adhere to Article 2.4 in using international standards as the basis for technical 
regulations except when such sta ndards are ineffective or inappropriate in fulfilling the legitimate 
objectives articulated under TBT Article 2.2 and which have been already incorporated in Article 13 
of Ukraine's Law on Standardization. The amendmen ts to the aforementioned law will also ensure 
that technical regulations shall not be more tr ade-restrictive than necessary to fulfil a legitimate 
objective taking account of the risks non-fulfilment would create. 
Question 189 
Finally, nothing in this section reflects the fact  that technical regulations are imposed by the 
Ministry of Agriculture. 
Answer:  
Indeed, under the Law on standardization No. 240 8-III dated 17 May 2001 Ministry of Agriculture 
can impose technical regulations. 
Question 190 
We have recently become aware that Ukraine imposes technical regulations on imported fish 
products, specifically government-mandated shel f-life standards.  Howe ver, Ukraine has not 
previously informed the Working Party of su ch technical regulations or provided the 
regulations to the Working Party for review. 
Answer:  
There are no new requirements or technical regul ations and no new border measures imposed by 
Ukraine on the import of fish products or agricu ltural products. Interstate  Standard (DSTU) 1168-86 
mandates a use-by-date term from four months to one year for fish products.  Fish products that do not 
comply with the shelf-life requirements under this sta ndard may not be circulated within the territory 
of Ukraine.  This applies equally on  domestic and imported fish products. 
Question 191 
We also understand that new restrictions exist on th e port of entry for fish products.  Similarly, 
no regulations have been submitted to the Working Party for review. 
Answer:  
There are no new border measures imposed by Ukraine on the import of fish products.  WT/ACC/UKR/118 
 Page 85 
 
 
 Question 192 
We request that this section be revised to include a description of these and any other 
restrictions imposed on the import of food and agricultural products. 
Answer:  
There are no new restrictions imposed by Ukraine on the import of food or agricultural products. Question 193 Please outline and provide a copy of any technical regulations imposed on food and agricultural 
products (i.e., government-mandated shelf-life sta ndards).  Are these measures equally imposed 
on domestic and imported product? 
Answer:
 
Please see the answer to Question 190. 
Question 194 
What restrictions exist regarding the port of entr y for fish products.  Are similar restrictions 
imposed on other food and agricultural products. 
Answer:  
There are no new border measures imposed by Ukraine on the import of fish products as well as of 
food and agricultural products. 
Question 195 
Comments on the Working Party report text:  Paragraph 121:  Draft Law, On Amendment of 
the Law on Metrology and Metrology Activity, is in preparation to "provide more precision to 
the application of the relevant laws."  We woul d like to see more information on the substance 
and timing for finalizing this Law. 
Answer:  
Please see the answer to Question 187. 
Question 196 
Concerning WT/ACC/UKR/113:  We appreciate the information provided in which Ukraine 
has analyzed how its three laws (from 17 May 2001) on standardization, conformity assessment 
and accreditation assist it in complying wi th various TBT obligations.  A review of 
WT/ACC/UKR/113 and the individual laws themselves reveal a number of gaps and some points of confusion. 
Among the gaps are the failure to address non-di scrimination in the law on standardization 
(which also covers technical regulations  and potentially a certification mark). 
It is not clear from reading the law, when and how a decision is made to make compliance with 
a standard mandatory or otherwis e develop a technical regulation. WT/ACC/UKR/118 
Page 86  
 
 It is also not clear at what point notice of the availability of a draft is published, nor where it is 
published.  Document WT/ACC/UKR/113 contains no information on how Ukraine will recognize as "equivalent" technical regulations of other WTO members (TBT Article 2.7) yet its own law on standardization (Article 13) indicates that when reference is made to standards in 
technical regulations, the technical regulatio n will specify whether compliance with the 
standard is the only, or just one option, for meeting the requirements. 
It also appears, as was noted at the Plurilat eral meeting in March 2003, that part of the 
conformity assessment law, as proposed, co ntradicts Article 6.4 of the TBT Agreement. 
Does Ukraine have plans for additional  legislation to address these issues? 
Answer:
 
To address all the issues above, Ukraine initiated e ffort toward amending the Law on Standardization 
No. 2408-III dated 17 May 2001 and the Law on Conformity Assessment No. 2406-III dated 
17 May 2001 in order to bring them into full compliance with WTO Agreement on TBT. 
Question 197 
Paragraph 122:  We note continued reference to adoption of European standards.  We reiterate 
that EU standards are not international standard s. Priority should be given to harmonizing 
with international standards as the nation al standards, instead of EU standards. 
Answer:  
Regarding EU standards see reply to Question 188 above. 
Question 198 
Has Ukraine developed its own decision-making criteria to determine whether international 
standards are effective and relevant fo r its own legitimate regulatory needs 
Answer:  
Regarding EU standards see reply to Question 188 above. 
Question 199 
Paragraph 123:  This section indicates the State Committee had drawn up a list of products 
subject to mandatory certification, approved by Ord er No. 498 of 30 August 2002.  It also notes 
ongoing review of products subject to mandatory certification with a move toward voluntary requirements. 
Has this list been provided to the Working Party?  Has it been further revised?  How does the 
State Committee determine whether ma ndatory certification is necessary? 
Answer:
 
This List is continuously being revised to reduce the number of goods subject to mandatory 
certification under each of the 39 categories.  The List  was last revised in 2002 where 30 categories of 
goods, presenting low risk to consumers, were dele ted from different sections of the List.  The 
information about goods subject to mandatory certifi cation under the most recent List was provided to  WT/ACC/UKR/118 
 Page 87 
 
 
 the WTO Secretariat on 16 October 2002 (please see WT/ACC/UKR/105/Rev.1).  In 2004, Ukraine 
plans to eliminate low risk goods under various remaining categories. 
Mandatory certification may be necessary in order to  meet a legitimate objective in accordance with 
Article 13 of the Law on Standardi zation No. 2408-III dated 17 May 2001: 
− protection of life, health or property of persons; 
− protection of animals and plants; 
− environment protection; 
− safety of products, processes or services; 
− preventing deception regarding the intended use and safety of products; and 
− elimination of a threat to the national security. 
Ukraine will not resort to mandatory certification (t echnical regulations) if the legitimate objectives 
can be addressed in a less trade-restrictive ma nner.  Ukraine will be amending the Law on 
standardization No. 2408-III date d 17 May 2001 and Law on Confor mity Assessment No. 2406-III 
dated 17 May 2001 to fully comply with Article 2 of the TBT Agreement. 
Question 200 
Paragraph 124:  We suggest redrafting to clean up the technical terminology (e.g., labelling can 
be a standard, technical regulation or conformi ty assessment procedure).  We also suggest 
rephrasing of the text that implicitly equates Ukraine's compliance with the EU approach (i.e., the "modular approach"-- an EU system adopted by Ukraine –as noted in paragraph 125) with 
WTO compliance.  Is regulatory authority really in the hands of producers?  If so, we would 
like to know more about how this is done. 
Answer:
 
Ukraine does not object to the redrafting suggestions to clean up the technical terminology. Ukraine has introduced a "module approach to conf ormity assessment" based on the provisions of 
international documents ISO/IEC. 
Although Ukraine welcomes manufac turers' declaration of confor mity, it does not substitute for 
conformity certificates issued for goods subject to mandatory certification.  Thus, the first sentence of 
Paragraph 125 should be  amended accordingly. 
Question 201 
Ukraine should have in place at the time of a ccession a system for responsible decision making, 
including the consideration of alternatives, impact assessment, publication of drafts for 
comment, etc.  From this text, it would appear th at the only system now in effect is adopt the EU 
requirements.  Is this the case? 
Answer:
 
Regarding EU standards see reply to question 188 above. Note further that Ukraine will implement in its na tional legislation the Code of Good Practice for the 
preparation, adoption and application of st andards – Annex 3 of the TBT Agreement. WT/ACC/UKR/118 
Page 88  
 
 Question 202 
Paragraph 125:  Articles 10 and 12 of Ukrain e's Law on Conformity Assessment restrict 
conformity assessment to only those bodies that are residents of Ukraine. 
Why is this so? It is possible that bodies ou tside of Ukraine are competent and could be 
evaluated as such upon application to the Ukra ine accreditation authority (particularly when 
they are adopting EU regulations). 
Does Ukraine have plans to accredit conformi ty assessment bodies outside their territory? 
Answer:
 
At this stage Ukraine does not intend to accred it conformity assessment bodies which are residents 
outside Ukraine.  On the other hand, Ukraine will work toward entering into negotiations with WTO 
Members for the conclusion of agreements toward mutual recognition of results conformity 
assessment procedures in accordance with the requirements under Article 6.3 of the TBT Agreement. 
Once the National Accreditation Agency of Ukrain e becomes a Member of ILAC, Ukraine will work 
toward increasing acceptance of test results of la boratories accredited by ILAC member bodies.  Then 
Ukraine will not foresee additional accreditation in Ukraine for laboratories accredited by ILAC 
Member bodies but expect notification of such bodies. 
Please see also the answer to question 184. 
Question 203 
Paragraph 126:  What is meant by the last sentence (i.e., what else would be required other than 
a certificate?).  Please clarify. 
Answer:  
In case of mandatory certification requirements,  only a conformity certificate is required to 
demonstrate conformity with technical regulations. Importers can obtain serial conformity certificate 
prior to importing a good subject to mandatory certifi cation.  A serial conformity certificate is valid 
for five years based on selected scheme of certification.  Goods imported under such certificate are not tested at the border unless there is clear evid ence that goods were damaged during transportation. 
In case an importer did not seek to have a serial conformity certificate, a Certificate of conformity 
may also be obtained upon importati on of goods.  In such case, testing upon importation is required in 
order to issue certificate of conformity for the specific shipment. 
Question 204 
Paragraph 127:  It would be helpful to have more precise information on the publications in 
which notices of draft standards, technical reg ulations and conformity assessment procedures 
appear; and, to explicitly state (if this is the case) that the enquiry point (TBT Article 10.1) and 
notification authority (TBT Article 10.10) are on e and the same.  It would also be helpful to 
have information on any procedures Ukraine has in place to ensure that public comments 
received on proposals are given fair consideration before a final rule is adopted.  WT/ACC/UKR/118 
 Page 89 
 
 
 Answer:  
Draft conformity assessment procedures are publishe d on the website of the State Committee of 
Ukraine in Technical Regulations and Consumer Po licy (Derzhspozhyvstandart).   As for draft product 
standards and technical regulations, they are not published due primarily to technical and funding 
reasons.  By the date of accession, Ukraine will impl ement in its national legi slation the Code of Good 
Practice for the Preparation, Adoption, and Ap plication of Standards (Annex 3 of the TBT 
Agreement) as well as commenting requirements under Item 6 of Annex 2 and Ar ticles 2, 3, 5, and 7 
of the TBT agreement; establishing, thus, a form al procedure for ensuring that public comments 
received on proposals are given fair consider ation before a final rule is adopted. 
Ukraine confirms that there will be one single point for handling both enquiry and notification. 
Specific information will be provided at a later point as legislation is being drafted at this stage in this 
regard.  In the meantime, on a temporar y basis, enquiries can be directed to: 
Phone:  380 44 268-92-73 
Fax.  380 44 268-54-02 Е-mail:  dstu@issi.kiev.ua 
Question 205 Paragraph 128:  There is no response from Ukrain e to the concerns raised in this paragraph. 
We seek response and a commitment from Ukraine th at it will be in full conformity with the 
obligations of the WTO TBT Agreement from the date of accession. 
Answer:
 
Ukraine commits to be in full conformity with th e substantive provisions including procedural and 
transparency requirements of the WTO TB T Agreement from the date of accession. 
Ukraine intends to bring in line with the TBT Agre ement all existing technical regulations (mandatory 
requirements).  This will be implemented thro ugh a program to revise all existing technical 
regulations and eliminate those which exceeds intern ational requirements a nd cannot be justifiable 
under Article 2.4 of the TBT Agreement.  In additi on, technical regulations will be revised to assess 
whether or not the circumstances or objectives giving  rise to their adoption no longer exist or if the 
changed circumstances or objectives can be addressed in a less trade-restrictive manner.  Technical regulations that do not comply with Article 3 of the TBT Agreement will also be eliminated. 
DSTU 1.12-2002 "On the rules for notification of trad e partners of Ukraine" is in conformity with 
provisions under the Article 2.9 Agreement on TBT. 
- Sanitary and phytosanitary measures 
Question 206 
Paragraph 131: Correction: the State Sanitary Epidemiological Service has substituted the 
Department mentioned in the text according to Cabinet of Ministers Resolution No. 1577 of 
10 October 2003 "on the creation of the Stat e Sanitary Epidemiological Service". 
Paragraph 132:  The current resting requirements of imported consignments under the 
veterinary border control regime appear excessive. WT/ACC/UKR/118 
Page 90  
 
 Answer:
 
The information has been taken under advisement. 
Question 207 
Paragraph 133:  We are concerned with Ukrain e's statement that "the establishment of a 
National Notification Authority is not considered a matter of priority at present".  Establishing 
such an authority should be considered one of th e first priorities in order to comply with the 
SPS Agreement and in particular the transparency provisions thereof. 
Answer:  
The information has been taken under advisement. 
Question 208 
In addition, setting up multiple enquiry po ints under several ministries does not appear 
appropriate, as the SPS Agreement (Annex B, paragraph 3) foresees that Members set up one 
enquiry point responsible for answering all reasonable questions concerning SPS matters. 
Answer:  
It is contemplated to set up a single enquiry poin t on SPS matters.  Ukraine will establish such point 
by the date of accession to the WTO. 
Question 209 
A commitment paragraph needs to be added to this section. 
Answer:  
[Ukraine can commit to having its legislation in  compliance with WTO rules by the date of 
accession., and to be in conformity with procedur al and transparency requirements. However, the 
complete alignment of sanitary and phyto-sanitary measures on WTO norms cannot be completed by 
the date of accession Ukraine will ask for an impl ementation period, and will submit a work program 
spelling our the steps that remain to be taken to  achieve full conformity and the time required.] 
Question 210 
While this section may reflect the current status  of Ukraine's SPS regime, it does not reflect the 
extensive exchange that Ukraine and Workin g Party Members have held on Ukraine's SPS 
regime and the necessary steps that need to be ta ken to bring the regime into conformity with 
the WTO SPS Agreement 
We understand that Ukraine's SPS regime is current ly under intense review and modification to 
bring it into conformity with the WTO SPS Agreement, however, the draft Working Party 
report does not accurately refl ect this important process. 
We request that this section be modified to reflect specific legislative changes that are underway 
to bring Ukraine's SPS regime into conformi ty with the requirements of the WTO SPS 
Agreement (transparency, sound science, etc.)  WT/ACC/UKR/118 
 Page 91 
 
 
 This section should also include information and commitments related to the establishment of 
an SPS Enquiry Point. 
Earlier this year, we were told that Ukrain e's SPS regime is currently under intense review and 
modification to bring it into conformity with the WTO SPS Agreement (transparency, sound 
science, etc.).  New frame work legislation and extensive amendments to current legislation were 
planned as part of this review.  Please outline the current status of this process and expected 
legislative changes. 
We would appreciate a status report on this wo rk, and assurances from Ukraine that it will 
work with the Secretariat to revise the text of WT/ACC/SPEC/UKR/5 to reflect, in some detail, 
its plans and objectives in this regard. 
We would also like to see a revised SPS checklist  based on the new legislation, when that 
becomes possible. 
We would like a commitment for WTO cons istency in this area upon accession. 
Answer:  
Ukraine has initiated efforts to bring by the date  of accession Ukraine's SPS legal regime into full 
conformity with the WTO SPS agreement's subs tantive provisions including procedural and 
transparency requirements.  The aim is to submit in 2004 a draft S PS law to the Parliament amending 
a package of SPS related laws: 
− Law on Veterinary Medicine; 
− Law on Quality and Safety of Food and Food Raw Materials (the new title will be Law on 
Safety and Quality of Food Products); 
− Law on Plant Quarantine; 
− Law on Foreign Economic Activity; 
− Law on Ensuring Sanitary and Epidemic Safety of Population; 
− Law on State Regulation of Import of Agricultural Products; 
− Law on the Protection of Populatio n from Infectious Diseases; and 
− Law on Pesticides and Agrochemicals. 
Once the SPS draft is finalized  (expected Summer 2004), an updated WT/ACC/8 (Checklist of 
Illustrative SPS Issues) will be provided to the WTO Secretariat. 
The objectives of such reform are to: 
− consolidate all existing SPS provisions under va rious existing laws into three separate 
framework laws governing respectively each of  the three areas (san itary, phytosanitary, 
and veterinary) of the SPS agreement; 
− bring the existing SPS provisions into conformity with the SPS agreement; and 
− introduce additional provisions to reflect full y the requirements of the SPS agreement and 
international best practice. 
The three framework laws (the Law on Veterinary Medicine, the Law on Safety and Quality of Food 
Products, and the Law on Plant Quarantine) will be the only three laws governing SPS matters.  These 
three laws will take into account provisions of the WTO SPS agreement including: 
− WTO terminology; WT/ACC/UKR/118 
Page 92  
 
 − Harmonization; 
− Equivalence in measures; 
− Risk assessment and appropriate level of protection; 
− Adaptation to regional conditions; 
− Transparency – enquiry and notification points; and 
− Inspection, control and approval procedures. 
The new Law on Veterinary Medicine will address anim al health issues only-provisions in the current 
Law that apply to food products of animal orig in will be included in the comprehensive Law on 
Safety and Quality of Food Products.  Major changes to this Law, in addition to explicit inclusion of 
SPS Agreement provisions, include harmonization w ith international terminology, introduction of 
international recommendations and guidelines in dise ase control, producer responsibility for ensuring 
production and circulation of disease-free animals and products, accreditation and authorization 
requirements for laboratories involved in tes ting domestic and imported animals and products, 
monitoring of animals and feed for residues of ha rmful substances, provisions enabling traceability of 
non-edible products of animal origin, transparent import procedures, and application of risk-based 
border control. 
The new Law on Safety and Quality of Food Product s covers all food products  regardless of content 
and stage of processing.  The Law introduces majo r conceptual changes in the production and 
handling of food products by introducing best international practices encompassing a food-chain approach to safe food, including mandatory implementation of HACCP systems in food producing enterprises.  This means that the producer will be responsible for the suitability (safety and 
acceptability) of food for human consumption, enab ling reduction of the State role to that of 
verification of conditions and practices necessary to  produce safe food.  In addition, the quality of 
food products will be determined according to standa rds (voluntary) and, when appropriate, minimum 
quality specifications defined in technical regulations. 
Other changes in the new Law on Safety and Qualit y of Food Products include clear delineation of 
authorities between the Veterinary Department and the Sanitary Service, minimization of 
documentation requirements for imported food product s, streamlined border control procedures based 
on the risk presented by the particular food product,  requirements for accreditation of all food control 
laboratories, and broad acceptance of internationa l standards and recommendations through adoption 
of such by the newly formed National Codex Alim entarius Commission of Ukraine.  Finally, minor 
amendments to the laws on Ensuring Sanitary and Epidemiological Safety of the Population, 
Protection of the Population from Infectious Diseas es, and Pesticides and Agrochemicals will mean 
that the new Law is the only legislation in Uk raine governing importation of food products. 
The new Law on Plant Quarantine updates Ukrainian phytosanitary legislation to international 
standards by explicitly incorpora ting SPS principles and new advances in the sphere of protection of 
plant health and life.  The new Law on Plant Qu arantine will be the only legislation in Ukraine 
applicable to imported plants, plan t products, and other articles that can carry or transmit plant pests. 
The Law specifies clearly the basis for determining regulated pests and those articles that may be subjected to phytosanitary measures.  Additional f eatures of the new Law include greater transparency 
in the process of granting quarantine permits (im port permission), minimization of documentation for 
importing, and introduction of a risk- and pe rformance-based system of border control. 
The new legal framework will ca ll for the establishment of a single SPS Enquiry and Notification 
Point. Ukraine intends to establish such point at  the Ministry of Economy and European Integration 
before the date of accession to the WTO.  WT/ACC/UKR/118 
 Page 93 
 
 
 Ukraine intends to bring in line with the SPS Ag reement all existing SPS measures.  Those measures 
that exceed relevant international recommenda tions and guidelines under Codex Alimentarius, 
International Plant Protection Convention (IPPC) and Office of International Epizootics (OIE) will be 
assessed to determine whether or not sufficient scienti fic evidence exists to justify such protection or 
results of risk assessment show that a higher le vel of protection is necessary - as stipulated in 
Articles 2.2, 3, and 5 of the SPS Agreement.  Inc onsistent measures with the SPS Agreement will be 
eliminated. 
During July 2004 the three framework laws (the La w on Veterinary Medicine, the Law on Safety and 
Quality of Food Products, and the Law on Plant Quar antine) will be submitted to the relevant state 
bodies to their approval.  As soon as the drafts of above mentioned laws are approved by all relevant 
state bodies the Government of Ukraine will be submitting them to the Parliament. 
- Trade-related investment measures 
Question 211 Paragraph 136:  this paragraph needs to be mo dified since the President signed the new Law 
related to Automobiles into force in March 2004. 
Answer:
 
Please see the response to Question 157. 
Question 212 
Paragraph 137:  According to information av ailable to us, the mentioned law on State 
regulation of sugar production has no requireme nt for mandatory sugar export.  See also our 
comment on paragraph 54 regarding the sugar quota. 
Answer:  
Article 3.11 of the Law "On State Regulation of Sugar Production and Sale" No. 758-XIV of 
17 June 1999 states that sugar may be produced  in Ukraine from imported raw materials on the 
exclusive condition that the whole of the finished products is to be exporte d outside Ukraine within 
time periods specified by Ukraine's legislation.  This provision extends to only sugar produced from 
imported raw materials, not the product as it is .  The Government will develop and submit the 
appropriate amendment to the Law "On State Regul ation of Sugar Production and Sale" in order to 
cancel that rule. 
Question 213 
A commitment paragraph needs to be added to this section. 
Answer:  
See also answer to question 157. 
Question 214 
There should be additional information in this  section on the TRIM on automobiles, and on 
Ukraine's plans for its elimination. WT/ACC/UKR/118 
Page 94  
 
 Answer:
 
See also answer to question 157. 
- State-trading entities 
Question 215 We remain interested in the activities of Kleb Ukrainy and indications of why it should not be 
considered a state trading enterprise.  We would like a more open treatment of state-owned and 
operated enterprises in the agricultural area, either in this section, or in the earlier section on 
state-owned enterprises. 
Answer:
 
During 2001-2003 the company "Khlib Ukrainy" was involved in export and import operations as any 
usual company on the general terms in consideration of market situation.  The company did not enjoy 
any special privileges. 
Should there arise any grounds to believe that the activity of this company may be qualified according 
to the Agreement on Interpretation of Article 17 GA TT, the Ukrainian side will provide answers to 
the questionnaire on the state trading re garding the company "Khlib Ukrainy". 
Information regarding the state owned enterprises in the agricultural sector which do not have any 
specific privileges is provided in section on state ownership and privatization. 
Question 216 
Concerning WT/ACC/UKR/115, There is only refe rence to the export activities of Ukrspirt 
regarding alcohol.  Is Ukrspirt the monopoly expo rter of Ukrainian alcoholic beverages, or are 
its state trading activities confined to only certain products? 
Answer:  
Ukrspirt Corporation has a monopoly for one product namely ethyl alcohol, and no such privilege or 
other exclusive advantage for its two other pr oducts, vodka and liqueurs.  For these products it 
competes in the market with other producers/sellers. 
Question 217 
Reference was made in the Trading Rights section of the draft report that "licenses to import 
and export ethyl alcohol, cognac and fruit spir its, which were issued only to State-owned or 
specialized enterprises specifically approved by the Cabinet of Ministers".  These "state-owned 
or specialized enterprises" have designated tr ading privileges not available to other firms or 
individuals, and therefore meet the criteria as state trading enterprises. Please list them and describe their relationship with the Ukrainian Government. 
Answer:
 
Right to import and export of ethyl alcohol and fruit  alcohols, rectified grape ethyl alcohol, rectified 
fruit ethyl alcohol, may only be carried out in th e presence of licenses only by state enterprises or 
organizations, specially authorized for this by the Cabinet of Ministers of Ukraine.  WT/ACC/UKR/118 
 Page 95 
 
 
 Only Ukrspirt Corporation has a monopoly for one product namely ethyl alcohol, and no such 
privilege or other exclusive advantage for its two other products, vodka and liqueurs. 
Right to import and export of cognac alcohol shall be exercised in the presence of licenses by 
specialized cognac producing enterprises, possessing required provisions of oak vessels for ripening 
of cognac alcohol, qualified expert s and own production facilities fo r production of cognac alcohol 
and cognac regardless of the form of ownership. 
Question 218 
(Statement) We expect that Ukraine will notify  the firms listed in paragraph 142 and all other 
firms identified as state-trading enterprises, and will undertake a commitment to abide by the terms of Article XVII and the Und erstanding in their operations. 
Answer:
 
Ukraine believes that currently onl y "Ukrspirt" Corporation and "Energorynok" enterprise are state-
trading enterprises as defined by Article XVII. 
Those enterprises were notified in the Questionnair es on State-Trading Activity circulated by the 
document WT/ACC/UKR/115. 
[The representative of Ukraine conf irmed that this Government woul d apply its laws and regulations 
governing the trading activities of these enterprises in conformity with the relevant provisions of the 
WTO Agreements, in particular Article XVII of GATT and Understanding on the Interpretation of 
Article XVII of the General Agreement on Tariffs and Trade 1994]. 
- Free zones, special economic areas 
Question 219 
Paragraph 144: Added Information:  Ukraine's free economic zones and priority development 
territories were regulated by Law No. 2673-12 "On general provisions regarding the creation and functioning of special economic zones" of 13 October 1992 (as amended on 15 May 2003) 
Answer:
 
Ukraine confirms this information. Question 220 Correction:  Each zone is regulated not thro ugh a resolution, but through a specific law. 
Answer:
 
Article 92 of the Constitution of Ukraine states that the procedure for the creation and functioning of 
free and other special zones, having an economic regime other than the general one, shall be 
determined by Laws of Ukraine exclusively, i.e. a separate, specific Law is to be adopted with regard 
to every such territory (zone). WT/ACC/UKR/118 
Page 96  
 
 Question 221 
Concerning paragraph 146:  It is noted that the Ukraine has stated there are no benefits linked 
to export performance or local content within th e free economic zones. However, an investor is 
able to "give preference" to products of Ukrain e origin. Could you please explain what is meant 
by "give preference" to products of domestic origin? 
Are there incentives provided to the investor wh ich are tied to this "preference"? If so, please 
explain what types of incentives are provided. 
Please explain how the Ukraine recommends that an  investor uses products of Ukraine origin? 
Is this done through incentives given to the investor? 
Approximately what portion of trade in the FEZs is exported, and what portion is sold to the 
rest of Ukraine? 
Answer:
 
Paragraph 2 of Resolution No. 1199 of July 1999 requ ires that the Ministry of Economy should make 
sure that all contracts for investment projects to be  implemented in priority investment areas or free 
economic zones comply with the typical contract approved by the same resolution.  Section 3, 
subsection 13 of the "Typical Contract for an I nvestment Project Implemetned in a Priority 
Envestment Area of Free Economic Zone" lists among the obligations of the investor under the 
contract the following:  "The investor is obliged  to give preference to goods (works, services) of 
Ukrainian production when prices, time limits for use, and quality and compliance with international 
standards are the same." 
This provision has no commercial significance, and has never been implemented. Investors in priority 
areas and zones are free to choose among imported and Ukrainian products as they wish, without 
prejudice to their investment incentives. 
Ukraine is preparing amendments to resolution No . 1199 to bring the language into compliance with 
WTO norms. 
Question 222 
Paragraph 148:  Ukraine acknowledges that importat ion of goods from the FEZs into the rest of 
Ukraine without reference to replacing the exempt ed customs, VAT, and excise duties is not 
consistent with WTO provisions.  The discussion in paragraphs 150-151, however doesn't appear to indicate that legislation is contemplat ed to address this problem.  Specifically, what is 
Ukraine prepared to do to address this and ot her WTO issues in the current FEZ legislation? 
Answer:
 
At the time of importation to the customs terr itory of Ukraine of goods from the SEZ which have 
status of special custom zone (SCZ) the VAT, exci se duty and the import duty are fully applied. In 
case when goods were manufactured or processed in the SCZ at the time of importation to the custom 
territory of Ukraine the VAT, excise duty a nd import duty are applied except for SEZ "Azov", 
"Donetsk", "Zakarpattia" and "Interport Kovel" as regards import duty only. 
Having good understanding of the issue, Ukraine is maki ng effort to resolve the issue, i.e. is giving 
due regard to possible approaches and practical steps.  WT/ACC/UKR/118 
 Page 97 
 
 
 Question 223 
Paragraph 150:  According to information availa ble to us, the mentioned moratoria were made 
valid for the year 2004 but will expire at the year end.  Please clarify the situation. 
Answer:  
The mentioned moratoria will expire at the end of  the year 2004. Article 9 of the Law "On State 
Budget of Ukraine for Year 2004" contains the rule introducing in 2004 the moratorium on the 
creation of new special (free) economic zones, technological parks, and special regimes for 
investment activities, on the expansion of the existing ones, and also a moratorium on the consideration and approval of new investment a nd innovation projects in these zones. However, on 
17 June 2004 the Law "On amendments to the Law "On State Budget of Ukraine for Year 2004" 
No. 1801-IV was adopted by Verkhovna Rada of Uk raine and came into force on 1 July 2004 and 
eliminating the moratorium on the consideration and approval of new investment and innovation 
projects in existing zones, territories and parks.  T hus, as of today the moratorium is on the creation of 
new special (free) economic zones, technological park s, and special regimes fo r investment activities, 
and on the expansion of the existing zones.  This moratorium is in force till the end of year 2004. 
Question 224 Paragraph 151:  We understand that Resolution No. 146 of the Cabinet of Ministers of 
11 February 2004 restricted the import volumes from the Donetsk FEZ in the first quarter of 2004.  Please update the paragraph accordingly. 
Answer:
 
The Cabinet of Ministers' Resolution No. 146 of 11 February 2004 restricting the import volumes 
from the Donetsk SEZ on Ukrainian customs territory in  the first quarter of 2004 has been cancelled. 
Ukrainian government has no plans to renew this measure. 
Question 225 
Document WT/ACC/UKR/114:  The answer to Question 79 mentions a Draft Law No. 4229 on 
"imposing the moratorium for consideration an d approval of new investments in SEZs" and 
states that the law provides for augmenting of export orientation of production in SEZs 
establishment of sanctions for an investor who does not fulfil the terms of an Agreement. 
This seems to indicate that companies have to expo rt in order to be able to locate in an SEZ. 
Can Ukraine please explain if such "agreemen ts" contain any export requirements and in 
regard to which non fulfilment of obligations of an agreement sanctions will be established? 
Is this Draft Law available in English? 
Answer:  
The draft Law "On Imposing Moratoria on Consider ation and Approval of New Investment Projects 
in Special (Free) Economic Zones and Priority Development Areas" (registration No. 4229) does not 
govern issues regarding the manufacture, sale or exportation of products in/from SEZs. 
Furthermore, the Law "On amendments to the Law "On State Budget of Ukraine for Year 2004" 
No. 1801-IV which was adopted by Verhovna Ra da of Ukraine on 17 June 2004 and enforced on WT/ACC/UKR/118 
Page 98  
 
 1 July 2004 eliminates the ban on the considerati on and approval of new i nvestment and innovation 
projects in existing zones, territories and parks. 
Question 226 
Document WT/ACC/UKR/116:  On pages 8 and 9, several advantages are listed that are 
granted to enterprises with the status of a zone/t erritory subject.  What are the conditions for an 
enterprise to obtain this status?  Are there any (minimum) export or local content requirements 
linked to this status? 
Answer:
 
The status of the entity of zone/a rea and the special regime for investment activities apply to all the 
business entities which are registered in the territo ry of the respective SEZ and which implement in 
that territory investment projects in priority economic activities. 
Laws on issues of SEZs and Priority Development Areas do not contain any requirements as to export 
or local in the territories of SEZs and PDAs. 
Question 227 
On page 8, it is mentioned that a product, in order to be transported duty free to the main 
customs territory, must be of SEZ origin.  Such origin is established when the value added in 
the zone is at least 50 per cent of the declared  value of the final product.  This appears to 
constitute a local content requirement which is  not in conformity with Article 3 ASCM and 
Article 3.5 GATT. 
Answer:  
Please see the answer to Question 222. Question 228 Concerning paragraph 150:  Could the Ukraine pl ease provide a copy of the new draft Law "on 
Imposing the Moratorium for Consideration and Approval of New Investment Projects in 
Special Economic Zones and Territories with Special Regime of Investment Activity"? 
It is our understanding that this new law is ge ared towards the export ation of manufactured 
goods in these zones.  Could you please specify what types of incentives will be provided for 
manufactured goods which are exported within th ese zones?  Do they go beyond those listed in 
Table 14(a) and (b)? 
Answer:
 
Paragraph 150 (as well as answer to the Ques tion 78 in WT/ACC/UKR/114) by mistake contains 
information which does not relate to the Draft Law No. 4229. 
The draft Law "On Imposing Moratoria on Consider ation and Approval of New Investment Projects 
in Special (Free) Economic Zones and Priority  Development Areas" (registration No. 4229 submitted 
to the Rada on 6 October 2003) does not govern any issues regarding the manufacture, sale or exportation of products in/from SEZs.  The dr aft law No. 4229 is simply proposing to impose 
mentioned above moratorium till 2010.  WT/ACC/UKR/118 
 Page 99 
 
 
 Furthermore, taking into account the Law "On ame ndments to the Law "On State Budget of Ukraine 
for Year 2004" No. 1801-IV which was adopted by  Verhovna Rada of Ukraine on 17 June 2004 and 
enforced on 1 July 2004 eliminating the ban on the co nsideration and approval of new investment and 
innovation projects in existing zones, territories and parks, the mentioned Draft Law No. 4229 more likely will not come in force. 
Question 229 As regards long list of changes and amendments to the SEZ regime mentioned in the paragraph 
150 currently there are no any such draft law submitted to the Rada. 
Answer:
 
So far there were several drafts "On changes and amendments to some laws of Ukraine regarding 
establishment and functioning of SEZ and introduction of special regimes of investment activity on 
the territories of priority development" s ubmitted to the Rada consideration namely: 
No.2077 of 20 August 2002 (submitted by  the Cabinet of Ministers) that provides application of 
import duties, excise and VAT to the goods which were manufactured or processed in the SEZ when 
they are imported to the custom territory of Ukrain e.  Such changes were proposed to be made in SEZ 
"Azov", "Donetsk" and "Zakarpattia".   This draft was rejected by the Rada and the Cabinet of 
Ministers is preparing a new one. 
No.2569 of 28 March 2003 (proposed by deputies) that provides for exclusion of the agricultural 
goods (groups 1-24) from the special custom regime; elimination of import dut y benefits (exemptions) 
for agricultural goods within special regimes of inve stment activity; specification of criterions for the 
determination of level of processing.  This dr aft is under consideration of the profile Rada 
Committees. 
No.3162 of 25 February 2003 (submitted by the Cabi net of Ministers) that provides for specification 
of determination of level of processing with regard to the provisions of Custom Code 2002.  The Draft 
Law No.3162 was returned for further work after the first reading on 16 May 2003. 
- Government procurement 
Question 230 
Paragraph 158: We strongly encourage Ukraine to  add a commitment to this paragraph to join 
the GPA by a given date.  ["become observer to the GPA at the time of accession to the WTO 
and start GPA negotiations by requesting membersh ip and tabling an entities offer one year 
after".] In the meantime, procurement must be conducted in a transparent manner and MFN 
treatment applied when tenders are opened to foreign goods and bidders ["Ukraine commits to 
conduct procurement in a transparent manner a nd apply MFN treatment providing all foreign 
suppliers with equal opportunity to participate in that procurement pursuant to the principle of MFN treatment, i.e., if a procurement was open ed to foreign suppliers, all foreign suppliers 
would be provided with equal opportunity to participate in that procurement."]. 
Answer:
 
The Ukrainian party has taken notice of this Member 's wish and re-worded the stated paragraph as 
follows: "the representative of Ukraine confir med that upon WTO accession, Ukraine would start 
negotiations on the accession to the Government Procurement Agreement". WT/ACC/UKR/118 
Page 100  
 
 Question 231 
We would recommend elaboration of this section to provide more useful information on how 
Ukraine arranges for government procurement. 
Answer:
 
Ukraine proposes to add to the Draft Report of the Working Party the following text as an answer for 
this request: 
Paragraph 1:  The Law contains an accurate descr iption of model tender pro cedures and conditions of 
their application.  The Law lays  down the cost limit (being equivalent to € 2,000 for goods and 
services and € 100,000 for works) in excess of which procurements must be effected subject to a 
tender procedure and in compliance with requirements of this Law. 
In accordance with the Law, the national system of government procurements is structured on the 
decentralization principles where-under procurement is carried out directly by an purchasing entity 
managing state funds (state power authorities, lo cal self-government bodies and institutions reporting 
to them, social insurance funds, the Pension Fund of  Ukraine, the National Bank of Ukraine, as well 
as enterprises and organizations receiving funding fro m the state and local budgets) to enter into a 
Procurement Agreement.  A tender committee to be  created by the purchasing entity managing state 
funds from among its officials shall bear organizational responsibility.  Since the monies in question are public funds (taxpayer's money), special importa nce is attached to adherence to universally 
accepted (which is reflected in international prac tice) procedure of government procurement based on 
open tender bidding and seeking to ensure the utmost  effectiveness of the utilization of funds, of a 
competitive environment promotion and furthering confidence in the state across the whole of 
Ukraine.  This is precisely the procedur e which the Law is aimed at instituting. 
Paragraph 2: The bidding concept enshrined in  the Law implies the performance of sequential 
iterations (actions) pertinent to procurements a nd culminating in a Procurement Agreement.  The 
bidding process typically involves invitation to par ticipation in a tender, development of detailed 
tender documentation containing clear , impartial and accurate specification, objective assessment in 
conformance with set criteria and inadmissibility of  negotiations between a customer and a supplier 
with respect to a tender winner determination. 
Article 5 provides for a non-discrimination principle - a fundamental rule underlying the law on 
competitive selection of suppliers in the course of  government procurements irrespective of their 
national status.  The Law maintains that no supp lier may be excluded from the state procurement 
procedure based on their national affiliation.  The transparent and fair bidd ing procedure enables the 
selection of the most economical proposal.  This ar ticle is deemed to constitute an inseverable 
component of the international law regulating go vernment procurements. Given the indispensability 
of harmonizing Ukrainian national laws with intern ational legal standards and requirements, the title 
of Article 5 and its wording have been fully brought  in line with universally acceptable international 
law norms. Alongside that, Article 6 of the Law in troduces a regime of support to domestic producers 
by granting price preferences to them vis-à-vis  foreign suppliers. 
Paragraph 3:  An important aspect of the Law is th e legal determination of a mechanism for pre-trial 
review of contractors' complaints with resp ect to potential breaches alleged during the state 
procurement procedures performance.  These issu es are covered in Chapter VII of the Law – 
"Appealing the Applied Procurements Procedures". 
Based on the review of complaints, insofar as the al leged violations have been proved, a decision is 
made to abrogate the tender, for which reason purch asing entities must be interested in abiding by the  WT/ACC/UKR/118 
 Page 101 
 
 
 legal requirements applying to government procurem ents.  In the event that a complaint has been 
recognized unsatisfied due to the fact that the cu stomer had entered into a procurement agreement 
prior to the time that the complaint was filed while the alleged violations have  been proved, materials 
of the case may be submitted to respective competen t controlling agencies, while in individual cases – 
to law enforcement bodies.  In addition to that, th e receipt of a complaint shall serve as sufficient 
grounds for conducting an inspection by both a comp etent authority and a controlling agency. In the 
event that any of the Parties objects to a decisi on rendered by a competent authority, then such 
decision may be appealed according to applicable law. 
Paragraph 4 – as a possible replacement for Paragra ph 157:  An information and analytical bulletin 
"Visnyk Derzhavnykh Zakupivel" (Gov ernment procurements Newslett er) launched by the Ministry 
of Economy in 1998 is the main tool of informa tion support for participants in the government 
procurements process and a mechanism ensuring due tr ansparency and oversight in this domain.  In 
November 1998, the Ministry of Economy registered a printed media outlet titled "Visnyk Derzhavnykh Zakupivel" (G overnment procurements Newsletter), in order to secure the necessary 
level of openness and transparency in government  procurements, and ensure free access for all 
business entities interested in participation in bidding for the procurement of goods, services and 
works by the state. 
In accordance with the Law, the bulletin publish es all open procurements procedures announcements 
and tenders outcomes. 
In addition to that, data concerni ng government procurement tenders are also posted on the official 
web-site of the Ministry of Economy of Ukra ine (www.me.gov.ua) and Ukrainian Government's 
WEB-portal (www.kmu.gov.ua), as well as on purchasing entities homepages. 
The analysis of dynamics of published announcements and of their content allows indicates a steady 
growth in the degree of government procurement transparency. 
Question 232 
Are there "purchases for state needs" independe nt of the Government's own consumption? 
Answer:
 
Purchases for state needs are rest ricted to the Government is own consumption requirements. 
Question 233 
We seek a commitment from Ukraine to become  an observer to the Agreement on Government 
Procurement and to initiate negotiations for memb ership in the Agreement by tabling an entity 
offer immediately after accession. 
Answer:  
Please see the answer to Question 230. 
- Transit 
Question 234 Answer 85 of document WT/ACC/UKR/114 and pa ragraph 160 Draft Working Party Report:  
Ukraine states that there are no restrictions based  on the flag of vessels, the place of origin ... WT/ACC/UKR/118 
Page 102  
 
 Article V:2, 2nd sentence, speaks of "no distinctions" (instead of restrictions).  We suggest to 
reformulate: "there are no restrictions NOR DI STINCTIONS based on the flag of vessels ...". 
Answer:
 
Ukraine suggests to reformulate: "there are no distinctions based on the flag of vessels ...".. 
Question 235 
Answers 86, 87 of document WT/ACC/UKR/114 and paragraph 161 Draft Working Party 
Report:  the unified fee, which is said to correspo nd to the cost of transit. Articles V:3 and V:4 
only allow reasonable charges fo r transportation or those comm ensurate with administrative 
expenses entailed by transit or with the cost of  services rendered.  What does "cost of transit" 
exactly mean according to Ukraine? 
Answer:  
Please see the answer to Question 241. 
Question 236 
Answer 87 of document WT/ACC/UKR/114 and pa ragraph 160 Draft Working Party Report:  
specific routes can be imposed for the transit of ex cisable goods.  Is this compatible with Article 
V:2, 1st sentence?  Which routes are these? 
Answer:  
Pursuant to Article 201 of the Customs Code of Ukraine, the customs transit of goods through 
Ukrainian territory shall be carried out along routes th at are selected by carriers at their own discretion 
proceeding from considerations of economic expe diency, provided that requirements determined 
pursuant to the Customs Code of Ukraine are complied with. 
For purposes of ensuring delivery of excisable goods  to designated customs offices and eliminating 
causes and conditions that promote criminal manifest ations of corruption, and of fighting against 
smuggling, the Cabinet of Ministers of Ukraine may designate points of entry for importation and exportation of excisable goods.  The recent list of those points which was approved by the Resolution 
of the Cabinet of Ministers No. 938 of 12 Augus t 1996 (with changes and amendments), will be 
provided to the WTO Secretariat. 
Question 237 
Articles V:5 and V:6 mandate "treatment no less  favourable" rather than "equal treatment".  
Is "equal terms" sufficiently broad to prevent si tuations where equal treatment would result in 
less favourable treatment? 
Answer:
 
"Equal terms" is sufficiently broad to prevent situ ations where equal treatment would result in less 
favourable treatment. Goods from any country are carri ed through Ukrainian territory on equal terms. 
No restrictions regarding MFN treatment in transit sh ipments are provided for by Ukrainian law.  It is 
in conformity with the provisions of Article V:5 and 6 of GATT 1994.  WT/ACC/UKR/118 
 Page 103 
 
 
 Question 238 
Paragraph 161 of the Draft Working Party Repor t:  Can the guarantee, the escort and carriage 
by the customs carrier be imposed also on products  other than excisable goods?  If so, on the 
basis of what justification? 
Answer:  
Pursuant to Article 161 of the Customs Code of Ukraine, any one of the following measures may be 
applied to goods that are under customs control an d are carried in transit. These measures aim to 
guarantee delivery of such goods to a designated customs office: 
− furnishing by the owner of the goods (or by a person authorized by the owner) of 
guarantees to customs authorities; 
− protection and escort of goods by customs authorities; 
− carriage of goods by a customs carrier; and 
− carriage on terms and conditions of the Customs Convention on the International 
Transport of Goods with the use of the TIR carnet 1975. 
Pursuant to Article 165 of the Customs Code of Ukraine, the type of measure aimed to guarantee 
delivery of goods that are under cust oms control to a designated custom s office will be selected by the 
owner of the goods or by a person authorized by the owner. 
Resolution No. 700 of the Cabinet of Ministers of  Ukraine, dated 29 June 1996, "On the Regulation 
on the Furnishing to Ukrainian Customs Authorities of Financial Guarantees regarding the Mandatory 
Delivery of Goods to Designated Customs Offices", provides the opportunity for the owner of goods 
(or for a person authorized by the owner) to furnish the following as a guarantee to customs 
authorities: 
− a bond in cash that is depos ited in advance into the deposit account of a designated 
customs office in the amount of taxes a nd charges prescribed by Ukrainian law, which 
taxes and charges would be payable in case of  importation of such goods for purposes of 
their free circulation within Ukraine's customs territory; and 
− a financial guarantee from an independent fina ncial intermediary regarding the mandatory 
delivery of goods to a designated customs office pursuant to the Regulation on the 
Furnishing of Financial Guarantees to Cu stoms Authorities by Independent Financial 
Intermediaries regarding the Mandatory Delivery of Goods to Designated Customs 
Offices, as approved by Resolution No. 1216 of  the Cabinet of Ministers of Ukraine, 
dated 4 October 1996; and 
− Resolution No. 606 of the Cabinet of Ministers of Ukraine, dated 12 May 2004, "On 
Amendments to the Regulation on the Furnis hing to Ukrainian Customs Authorities of 
Financial Guarantees regarding the Mandatory  Delivery of Goods to Designated Customs 
Offices", gives effect to one more type of financial guarantee that is furnished to customs offices — a bank guarantee, for purposes of more effective use of market mechanisms in the area of guarantees of and for delivery of goods to designated customs offices. 
Question 239 A commitment paragraph needs to be added to this section. WT/ACC/UKR/118 
Page 104  
 
 Answer:
 
[The Representative of Ukraine confirmed that  on accession his Government would ensure that 
Ukraine's laws and regulations governing transit operations would be in conformity with the 
provisions of the WTO Agreement, in particular Article V of the GATT 1994.] 
Question 240 
Paragraph 160:  please specify the restrictions fo reseen in the case of transit of excisable goods 
(alcoholic beverages and tobacco products). 
Answer:  
Please see the answer to Question 236. 
Question 241 
Paragraph 161:  indicates that goods in transit ar e exempted from duties, fees and taxes, except 
for the unified fee, which corresponds to the cost  of transit. Please specify what is included in 
the cost of transit (only use of highways?). 
Answer:  
Pursuant to Article 1 of the Law of Uk raine, dated 4 November 1999, No. 1212- ХІV "On the Unified 
Fee that is charged at Customs Points of Entr y through the Ukrainian State Border" (as amended), 
unified fees are charged at customs points of entr y through the Ukrainian state border in accordance 
with Ukrainian law for the performance of custom s control in case of transit of goods and motor 
vehicles, for the performance of sanitary, veteri nary, phytosanitary, radiological, environmental 
control of cargo and motor vehicles; for the fare of motor vehicles down Ukrainian highways, and for 
the fare of auto motor vehicles that exceed the pr escribed amounts of total weight, axle loads, or/and 
overall dimensions. 
For auto motor vehicles and containers that cro ss the Ukrainian border without cargo, the rate of 
uniform fees for the performance of  control specified in this Law is prescribed at 20 per cent of the 
rate set in Article 5 of this Law with respect to gi ven auto motor vehicles and containers. In such case, 
fees for the fare down Ukrainian highways (for ev ery kilometer of passage), including fees for 
exceeding the prescribed amounts of total weight, axle loads, or/and overall dimensions, will be 
collected in full. 
In the event that railway cargo cars without cargo cr oss the Ukrainian border, the uniform fee will not 
be collected. 
The unified fee will not be collected from motor ve hicles in case of transit of cargo that may not be 
permitted entry through the customs border of Ukra ine, which cargo is reloaded to other motor 
vehicles at the customs control zone of the entry point which is simultaneously a point of entry and 
departure of such cargo. 
Article 5 of this Law specifies types of motor vehicles and rates of the unified fee:  WT/ACC/UKR/118 
 Page 105 
 
 
 Unified Rate Fee per motor vehicle, in 
Euro 
Type of Motor Vehicle Seat Capacity or Total Weight of 
Motor Vehicle with Cargo For conducting 
the control For fare down 
highways per 
every km of 
passage 
from 10 to 30 seats inclusive 2 0.02 1. Buses 
Over 30 seats 5 0.02 
Up to 20 tons inclusive 5 0.02 2. Trucks with/or without trailers and 
prime movers with/or without 
semi-trailers  Over 20 up to 40 tons inclusive 10 0.02 
Over 40 up to 44 tons inclusive 10 0.1 
Over 44 up to 52 tons inclusive 10 0.2 
Over 52 up to 60 tons inclusive 10 0.27 3. Heavy weight trucks 
Over 60 tons for every next 10 tons 10 0.78 
Up to 5% overweight inclusive - 0.05 
Over 5% to 10% overweight 
inclusive - 0.1 
Over 10% to 20% overweight 
inclusive - 0.27 4. Heavy weight mo tor vehicles with 
excessive axle loads 
Over 20% for every next 5% 
overweight - 0.15 
5. Heavy weight motor vehicles 
exceeding prescribed breadth, 
height, length dimensions For each parameter - 0.03 
6. Railway cargo car, container  2 - 
 
Examples of Calculation of the Unified Fee collected  by Ukrainian Customs Offices at the Time of 
Shipment of Goods through Entry Points on the Ukrainian State Border (Importation, Transit) 
Example 1:  A truck – with capacity of 30 tons, car go – reams of paper (Commodity Code 4801 00), 
is headed in transit from Slovakia to Russia, the poi nt of entry into Ukraine is Uzhgorod, the point of 
exit from Ukraine is Novgorod-Siverskiy (Chernigov oblast).  The distance is about 1,000 km. 
Pursuant to Resolution No. 1569 of the Cabinet of Ministers of Ukraine, dated 24 October 2002, it is 
subject to customs, phytosanitary and radiological types of control. 
The formula of calculation for this mo tor vehicle is as follows: 10 + 0.02 х L (where, L means the 
length of the route, which in this case totals 1,000 km.). 
Based on the foregoing, the Unified Customs Fee = 10 + 0.02 х 1,000 = € 30. 
Example 2:  A truck – with load capacity of 10 tons, cargo – tomatoes prepared or preserved (product 
code 2002), is headed from the Republic of Moldov a to the Kyiv Regional Customs Office (Kyiv) for 
customs clearance (import), the po int of entry into Ukraine – Izma il (Odessa oblast). The distance is 
about 680 km. 
Pursuant to Resolution No. 1569 of the Cabinet of Ministers of Ukraine, dated 24 October 2002, it is 
subject to customs, sanitary and radiological types of control. 
The calculation formula for this motor vehicle is as follows: 5 + 0.02 х L (where, L means the length 
of the route that totals 680 km. in this case). 
Based on the foregoing, the UCF = 5 + 0.02 х 680 = € 18.6. WT/ACC/UKR/118 
Page 106  
 
 Question 242 
Please outline the fee structu re for transiting Ukraine. 
Answer:
 
Please see the answer to Question 241. 
- Agricultural Policies 
(a) Imports 
Question 243 Paragraph 164:  See our comment on paragraph 54 regarding the sugar quota 
Answer:
 
Currently, there are no quantitative restrictions on im ports of agricultural products in Ukraine. The 
Law "On State Budget of Ukraine for Year 2004" provi des for imports into Ukraine of raw cane sugar 
under the tariff rate quota in the quantity of 125,000 t ons at the import duty rate of € 30 per ton until 
15 September 2004. The customs tariff rate on raw cane sugar outside the tariff quota, equals 
50 per cent of the customs value but no less than €300 per ton. 
Please, see also the answer to Question 55. (c) Internal Policies Question 244 Paragraph 169:  See our comment on paragraph 54 regarding the sugar quota 
Answer:
 
An error has been made in Paragraph 169.  Reso lution No. 1977 of 25 December 2002 introduced a 
quota for the production of sugar from suga r beets for the period 1 September 2003 - 
1 September 2004, not a tariff rate quota on the sale of refined sugar in the domestic market. The 
domestic legislation sets the quota for the production (t he A quota) of refined sugar. This sugar is 
required to be sold in the domestic market and ma y not be exported. However, beside the A quota, the 
current legislation provides for the B quota and the C quota.  The B quota is intended for supplies 
outside Ukraine, under international contracts, and the C quota is the sugar produced in excess of the 
A and B quotas and intended to be sold by its owners  exclusively outside the country.  Therefore, the 
A quota may not be viewed as an import restriction or  an obstacle to imports.  The tariff rate quota for 
raw cane sugar is established for imports, in addition to the above stated quotas. 
Volumes of sugar export sales are determined by ow ners of sugar independent ly, with due account for 
the resources necessary to fulfil obligations under A and B quotas.  Ukraine does not perceive here the 
presence of a prohibited quantitative restriction as defined by Article XI of GATT 1994 and as banned 
by TRIM. 
Question 245 
Paragraph 170:  See our comment on paragraph 137  WT/ACC/UKR/118 
 Page 107 
 
 
 Answer:  
In paragraphs 137 and 170 of th e Working Party Draft Report (WT/ACC/SPEC/UKR/5), the case in 
point is the existence in the Law of Ukraine "On State Regulation of Sugar Production and Sale" of a 
requirement of mandatory exportation of s ugar produced from imported raw materials. 
Article 3.11 of the Law "On State Regulation of Sugar Production and Sale" No. 758-XIV of 
17 June 1999 states that sugar may be produced  in Ukraine from imported raw materials on the 
exclusive condition that the whole of the finished products is to be exporte d outside Ukraine within 
time periods specified by Ukraine's legislation.  This provision extends to only sugar produced from imported raw materials, not the product as it is .  The Government will develop and submit the 
appropriate amendment to the Law "On State Regul ation of Sugar Production and Sale" in order to 
cancel that rule. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 246 Some of our earlier questions (reproduced in document WT/ACC/UKR/114) have not been 
answered in the Working Party Report (even though reference is made to the questions 
themselves).  Please answer them in detail in th e next revision of the Working Party Report. 
In paragraph 174 of the draft Report, the represe ntative of Ukraine stated that Ukraine "had 
provided detailed information on the implementa tion of the TRIPS Agreement in documents 
WT/ACC/UKR/94, WT/ACC/UKR/102 and Rev. 1, WT/ACC/UKR/112 as well as in a 
comparative table of compliance of the nation al legislation with the TRIPS Agreement in 
document WT/ACC/UKR/95."  The newly adopted Civil Book of Ukraine (Book Four) is 
repeatedly mentioned in the revised checklist (WT/ACC/UKR/112) of Ukraine's implementation 
of the TRIPS requirements. 
We would be interested to know which Article of the newly adopted Civil Book fulfils which 
obligation of the TRIPS Agreement and whether decisions and/or specific measures are being 
taken or planned to ensure efficient implemen tation and enforcement of these obligations. 
Answer:
 
Information about compliance of the nation legisl ation of Ukraine with the TRIPS Agreement is 
stated in the renovated document WT/ACC/UKR/112 which was sent to the WTO Secretariat.  This 
document contains, in particular, information on the Ukrainian Civil Code's compliance with the 
TRIPS Agreement's provisions. 
Question 247 
As according to the comparative table of complia nce of the national legislation with the TRIPS 
Agreement (WT/ACC/UKR/95), the Ukrainian Domest ic Legislations did not comply with all 
the requirements of the TRIPS Agreement at the ti me of the establishment of the table in 2001, 
we would be interested to receive an update of WT/ACC/UKR/95. 
Answer:  
Information about compliance of the nation legisl ation of Ukraine with the TRIPS Agreement is 
stated in the renovated document WT/ACC/UKR/112  which was sent to the WTO Secretariat. WT/ACC/UKR/118 
Page 108  
 
 Question 248 
Paragraph 187: According to the Draft Report, th e Law "On Protection of Rights to Indications 
of Origin of Goods", No. 752-XIV of 16 June 1999 and the Law "On Protection of Rights to Marks for Goods and Services", No. 3689-XII of  15 December 1993 provide for the protection 
of geographical indications. 
Could you please specify in the Report which provision of your legislation provides for a 
protection of geographical indications which is unlim ited in time, as required by Part II, Section 
3 of the TRIPS Agreement. 
Answer:
 
Paragraph 2 of Article 6 of the Law "On Protection of Rights to Indications of Origin of Goods" 
No. 752-XIV of 16 June 1999 states that legal protecti on shall be provided to qu alified indications of 
origin of goods on the basis of registration thereo f, taking effect on the registration date and for 
indefinite time. 
Article 15 of the Law "On Protection of Rights to In dications of Origin of Goods" merely establishes 
the validity period for the Certificate of Registration of  the right to the qualified indication of origin of 
goods, which is to be prolonged (rene wed) every ten years.  The qualified indication of origin of 
goods itself is registered as specified in Article  14 of the said Law.  The registration may be 
terminated only the grounds stated in Article 21.1 of the Law.  Thus, this rule of the Law complies 
with the TRIPS Agreement. 
Question 249 
Ukraine has made significant progress in bringi ng its intellectual property rights (IPR) regime 
into compliance with the TRIPS Agreement, enac ting several key pieces of legislation in recent 
years. Ukraine has also provided substantial de tailed information and replies to questions to 
further explain its IPR legislation and institutions. 
We thank the delegation of Ukraine for providing  detailed answers to questions and providing 
additional detailed information on its IPR regime.  The material provided in 
WT/ACC/UKR/117 and Add.1 was extremely helpful. 
While the draft Working Party Report (WT/ACC/SPEC/UKR/5) is much improved, it should 
be expanded in some areas, particularly regarding enforcement, to incorporate new 
information. We have a few outstanding questio ns and specific drafting suggestions for the 
Draft Working Party Report, which we will provide in writing. 
A major substantive issue outstanding is the adop tion of the amendments to the optical disk 
media (ODM) licensing laws. We would appreciat e a report on its current status and Ukraine's 
intentions. 
Answer:  
At this point, the Supreme Rada of Ukraine has received a Draft Law introducing amendments to the 
Law of Ukraine No. 2953- ІІІ of 17 January 2002 "On Specific Features of State Regulation of the 
Activities of Economic Subjects Related to Production, Export, and Import of Discs for Laser-
Readable Systems" scheduled for consideration at the next Rada session.  The text of the Law 
No. 2953- ІІІ of 17 January 2002 and text of the Draft Law has been submitted to the WTO 
Secretariat.  WT/ACC/UKR/118 
 Page 109 
 
 
 The Draft Law takes account of practically all requi rements regarding the improvement of intellectual 
property rights protection in production, export, a nd import of discs.  The draft Law provides for the 
introduction of export (import) licenses for the expor t and import of discs; that is, one-time license 
will be issued for each consignment of goods; fo r the introduction of licensing for the production, 
export, and import of matrices for the manufacturing of discs etc. 
Question 250 We would like to review Ukraine's recent legisl ation amending a number of IPR laws, the Law 
"On Amendments to Legal Acts of Ukraine with Respect to Legal Protection of Intellectual Property Rights", No. 850-IV, passed by the Verkhovna Rada of Ukraine on 22 May 2003; Law "On Amendments to the Law of Ukraine of Prot ection of Rights to Plants Varieties" of 
17 January 2002; and the Law "On Protection Against Unfair Competition" No. 236/960VR, of 
7 June 1996. 
We would also appreciate consolidated texts of  Ukraine's main IPR laws, as amended by the 
Law "On Amendments to Legal Acts of Ukraine with Respect to Legal Protection of Intellectual Property Rights", No. 850-IV, and other new la ws introducing amendments to the existing 
regime. Ukraine has ten laws on IPR, many of wh ich have been amended. Consolidated texts of 
these laws reflecting all amendments made to date are essential for transparency purposes. 
Answer:
 
The Law of Ukraine "On Introducing Amendments a nd Additions to Ukrainian Legislative Acts on 
Legal Protection of Intellectual Property Right s" No. 850-IV of 22 May 2003 has introduced 
amendments to ten normative and legal acts. Out of these, six laws including the Law of Ukraine 
No. 850-IV of 22 May 2003 itself were handed over by Ukraine to the Working Party (see 
WT/ACC/SPEC/UKR/5).  Other normative and lega l acts which were amended by the Law of 
Ukraine "On Introducing Amendments and Additi ons to Ukrainian Legislative Acts on Legal 
Protection of Intellectual Property Rights" No. 850 -IV of 22 May 2003, are very bulky codes (the 
Civil Code of Ukraine, the Economic (Commercial) Procedural Code of Ukraine, the Criminal Code 
of Ukraine, and the Criminal Procedural Code of Ukraine). 
Translations of these codes are accessible in  Ukrainian and English at a free web-site 
www.welcometo.kiev.ua 
Question 251 
Document WT/ACC/UKR/117 confirms that the new copyright law implements Berne 
Convention Article 18 for retroactive protection of  copyrighted works but is silent with regard 
to retroactive protection of sound recordings.  Th at is, there is no entry on the check-list for 
TRIPS Article 14(6), which requires that Berne Article 18 requirements on retroactivity apply to performers and producers of phonograms. We suggest that the checklist be revised to add an entry for TRIPS Article 14(6), with an entry on how Ukraine fulfils this obligation. 
Answer:
 
Re the implementation of Article 14 of the TRIPS Agreement: Paragraph 4 of the Closing Provisions 
in the Law of Ukraine No. 3792- ХІІ of 23 December 1993 "On Copyright and Related Rights" 
(revised on 11 July 2001) stipulates that from the eff ective date of the Law, the periods of copyright 
protection as provided for by Article 28 and Parts On e and Two of Article 44 of this Law shall be 
applied in all cases where the 50-year term of copyrigh t after the author's death or the term of validity 
of related rights has not ended by the date of comi ng into effect of this Law.  Paragraph 5 of the WT/ACC/UKR/118 
Page 110  
 
 Closing Provisions stipulates that this Law shall be applied to performances and phonograms created 
or made public for the first time before the date of coming into effect of this Law where as of this 
date, less than 50 years elapsed since the first recording or publication thereof. 
Paragraph 5 of the Closing Provi sions stipulates that the passage "… upon giving notice that the 
provisions of the indicated Convention do not extend to works that of the date of coming into effect of 
the Convention for Ukraine, have already been public  domain" has been deleted from Article 2 of the 
Law of Ukraine "On Ukraine's Ac cession to the Bern Convention on Protection of Literary and 
Artistic Works" No. 189/95- ВР of 31 May 1995.  Thus, Artic le 18 of the Bern Convention on 
Protection of Literary and Artistic Work retains its full force in the Ukrainian territory, and the 
retroactive effect of protection provisions in relation to performances and phonograms (Article 14 of 
the TRIPS Agreement) is secured. 
Please see also the answer to Question 263. 
Question 252 
WT/ACC/UKR/117/Add.1 mentions three laws enac ted in 2003 (at the bottom of page 2 and top 
of page 3).  We should make sure we get final copies of each of these. We are a bit confused 
about the 1st and 3rd laws, which both have th e title "On Introducing Amendments to Certain 
Legislative Acts of Ukraine on Legal Protection of Intellectual Property".  The first was enacted 
22 May 2003, the other on 3 Februa ry 2004.  If these are indeed two different laws, we need to 
see both. 
Answer:
 
Indeed, those are two different laws.  The Law No. 850-IV of 22 May 2003 and the Law No. 1407-IV 
of 3 February 2004 have been s ubmitted to the WTO Secretariat. 
2. Substantive Standards of Protection, Incl uding Procedures for the Acquisition and 
Maintenance of Intellectual Property Rights 
(a) Copyright and related rights Question 253 
Paragraph 182:  Ukraine's reservation concernin g Article 18(3) of the Berne Convention will 
have to be withdrawn upon accession.  Please am end the paragraph to reflect a reaction from 
Ukraine on this matter. 
Answer:
 
Pursuant to the Law of Ukraine, dated 11 July 2001, "On Amendments to the Law of Ukraine "On 
Copyright and Related Rights", Article 18 of the Be rn Convention for the Protection of Literary and 
Artistic Works is in full effect in Ukraine. No te No. 72/35-612-2189 of the Ministry of Foreign 
Affairs of Ukraine, dated 3 June 20 04, on the removal of the reservati on in regard to Article 18(3) of 
the Bern Convention was provided to the World Intell ectual Property Organization by official letter 
No. 173/018, dated 10 June 2004, from the Uk raine Permanent Representative Office in the 
Department of the UN and other Inte rnational Organizations in Geneva. 
Please see also the answer to Question 251.  WT/ACC/UKR/118 
 Page 111 
 
 
 (b) Trademarks, including service marks 
Question 254 Paragraph 185:  [previous questions: The new La w on Advertising (Article 6) foresees that all 
advertising (including the use of trademarks) must  be in Ukrainian. How will this be applied in 
practice?] 
Answer:
 
Please see the answer to Question 255. 
Question 255 
New information:  The Advertising Law (Article 6) has been amended on 3 February 2004 to be 
in conformity with the Paris Convention. Please update this paragraph accordingly. 
Answer:  
Ukraine confirms this information.  Paragraph 185 could be re-worded as follows: "Responding to 
one of the Working Party Members, who noted that, pursuant to Article 6 of the Law of Ukraine "On 
Advertising", all advertising, including trademarks  in foreign languages, must be presented in the 
Ukrainian language, and further inqui red about the practical application of this measure, the Ukrainian 
representative noted that the said inconsistencies of the Law of Ukraine "On Advertising" with Article 
6quinquies  of the Paris Convention had been removed w ith the adoption on 3 February 2004 of the 
Law of Ukraine "On Amendments to certain Legisl ative Acts of Ukraine regarding Protection of 
Intellectual Property", under No. 1407-IV. 
Question 256 
How does Ukraine provide protection for collect ive marks as required by the Paris Convention? 
There appears to be no mention of  these marks in Ukraine's law. 
Answer:  
In Ukraine, collective marks are granted similar le gal protection to that accorded "individual" marks. 
When an association of persons submits for registra tion a mark they wish to register as a collective 
mark, they must specifically indicate that under the INID code (551) and assign the statute of a 
collective mark. 
Question 257 
Does a well-known mark have to be applied for with the Appellate Chamber and recognized as 
such before an action can be brought to protect it? 
Answer:  
In accordance with Article 25 of the Law of Ukrain e "On Protection of Rights to Marks for Goods and 
Services" No. 3689- ХІІ of 15 January 1993 (as amended on 22 Ma y 2003), protection of rights to a 
well-known mark shall be provided as stipulated by Article 6 bis of the Paris Convention and by this 
Law, based on recognition of the mark as well- known by the Chamber of Appeals or a court. WT/ACC/UKR/118 
Page 112  
 
 Ukrainian law does not require that the recogn ition of a mark as well-known by the Chamber of 
Appeals must precede the institution of  proceedings seeking that in a court of justice.  A mark may be 
recognized as well-known in Ukraine by decisi on of a court considering a case of alleged 
infringement of the rights to such mark. 
Therefore, a person seeking protection for a mark we ll-known in Ukraine, has a choice of three ways 
to do so: submit an application to the State Depart ment's Chamber of Appeals for the recognition of 
the mark concerned as well-known in Ukraine; or where there takes place an alleged infringement of 
rights, go to an economic court requesting protection of his/her violated rights and protected interests 
and the recognition of the mark as well-known; or , finally, go to an economic court requesting 
protection of his/her violated rights to a well-known mark recognized as such by decision of the 
Chamber of Appeals that came into effect and has not been appealed. 
Question 258 
Do trademark licenses first need to be recorded under Article 16 of the trademark law in order 
for the licensee to initiate suit to recover damages for infringement? 
Answer:
 
In accordance with Paragraph 9 of Article 16 of the Law of Ukraine "On Protection of Rights to 
Marks for Goods and Services" No. 3689- ХІІ of 15 January 1993, a license agreement shall be 
deemed valid when executed in written form and signed by the parties to it.  State registration is not a prerequisite for the recognition of an agreement as valid. 
In accordance with Paragraph 3 of Article 20 of th e indicated Law, a person who acquired a license, 
may also request the restoration of infringed rights of the owner of a certificate to a mark, upon the 
latter's consent. 
(c) Geographical indications, including appellations of origin 
Question 259 Is there any requirement that an application for a geographical indication from a foreign 
country must include a government document proving the right of the indication in the country 
of origin? 
Answer:
 
In accordance with Paragraph 2 of Article 8 of the Law of Ukraine "On Protection of Rights to 
Indications of Goods' Origin" No. 752-XIV of 16 June  1999, legal protection shall not be granted to a 
qualified indication of the origin of a good related to a geographic location in a foreign state, if: 
− Ukraine has not entered into a relevant accord  with the foreign state concerned providing 
for mutual protection of this particular cate gory of indication of the origin of a good;  
− The indication concerned is not protected in the foreign state concerned. 
Question 260 
Ukraine has indicated that Article 8, item 3, of  the Law "On Protection of Rights to Indications 
of Goods Origin" provides that "legal protection may not be denied to the name of a place of origin or appellated geographica l indication on the grounds that a sign for goods and services 
registered in Ukraine consists of only such indicati on or contains the appellated indication as an  WT/ACC/UKR/118 
 Page 113 
 
 
 element." Further, the law "On the Amendment of  Certain Legislative Acts of Ukraine on 
Intellectual Property" states, at Article 20(4), that "the following shall not be regarded as violations of rights of the owner of a mark: … (b) use by a person, who is granted a right to use the name of a place of origin or a geographic indication of origin of a good pursuant to law, of the indication that is identical or similar to the mark that consists only of the name of the place 
of origin or the geographic indication of origin of goods." 
Answer:
 
It is incomprehensible what artic le is talking about as long as the ar ticle 20 of the Law of Ukraine "On 
Protection of Rights to Trademarks for goods a nd services" doesn't contain paragraph 4 (b). 
Question 261 
How are Article 8, Item 3, of the law "on Protect ion of Rights to Indication of Goods Origin" 
and Article 20(4)(b) of the amended trademark law consistent with Article 16.1 of TRIPS, which 
requires that trademark owners have exclusive the right to prevent unauthorized use of identical or similar signs for goods or services whic h are identical or similar to those in respect 
of which the trademark is registered where such use would result in a likelihood of confusion? 
Answer:
 
It is unclear which exactly article is meant as Article 20 of the Law of Ukraine "On Protection of 
Rights to Marks for Goods and Services".  It does not contain paragraph 4(b). 
In Accordance with paragraph 5 of Article 16 of the Law of Ukraine "On Protection of Rights to 
Marks for Goods and Services", "a certificate provid es its holder with an exclusive right to prohibit 
other persons from using without his/her consent, un less otherwise specified in  the law, the following: 
− a registered mark with respect to goods  and services entered in the certificate; 
− a registered mark with respect to goods a nd services related to the one entered in the 
certificate inasmuch as such use may be  misleading with respect to the person 
manufacturing goods or providing services; 
− an indication similar to a registered mark w ith respect to the goods and services entered in 
the certificate inasmuch these indications ma y be confused as a result of such use; 
− an indication similar to a registered mark w ith respect to goods and services related to the 
ones entered in the certificate to the extent th at such use may be misleading with respect 
to the person manufacturing goods  or providing service, or that these indications and the 
mark may be confused. 
Further to that, in accordance with paragraph 6 of Article 16 of the Law of Ukraine "On Protection of 
Rights to Marks for Goods and Services", an exclus ive right of a certificate holder to prohibit other 
persons from using without his/her consent the regist ered mark does not apply the use of a qualified 
indication of the good's origin subject to prot ection under the Law of Ukraine "On Protection of 
Rights to Indication of Origin of Goods". 
(h) Requirements on undisclosed information,  including trade secrets and test data 
Question 262 Paragraph 196:  How is Ukraine planning to im plement Art. 39(3) TRIPS?  What period is 
foreseen for data exclusivity? WT/ACC/UKR/118 
Page 114  
 
 Answer:
 
Please see the answer to Question 263. 
Question 263 
Ukraine has stated that test data is protected  against disclosure pursuant to TRIPS Article 39.3, 
but has not explained how it is also protected against unfair commercial use. How does Ukraine 
provide the latter protection? What is the term of protection for test data? 
Does Ukraine allow others to rely on test data  submitted by the originator by granting 
marketing approval to others based on the orig inator's data. If not, for what period? 
Answer:  
In accordance with Article 507 of the Civil Code of Ukraine (came into effect on 1 January 2004), 
state authorities are obliged to provide prot ection from unscrupulous commercial use to any 
information which constitutes commercial secret and the creation of which requires substantial efforts 
and which has been made divulged to them for the purpose of obtaining legal permission for the conduct of activities related to pharmaceutical, agri cultural, and chemical products containing new 
chemical compounds.  Such information shall also be  protected by competent state authorities from 
disclosure, with the exception of cases where such  disclosure is necessary for the purpose of assuring 
protection to population, or no steps have been ta ken to protect such information from unscrupulous 
commercial use. 
In addition, Article 508 of the Code stipulates that  the term of validity of the intellectual property 
right to a commercial secret shall be limited to th e period of existence of the totality of attributes 
proper to a commercial secret. Such attributes include the following: 
− information is not known and is not easily accessible in general or in a certain form; 
− information is of commercial value; and 
− information has been subjected to existing measures commensurate with circumstances, 
which measures are aimed to preserve the secrecy of the information and have been undertaken by the person who legally controls such information. 
In accordance with the Law of Ukraine "On Protec tion from Unfair Competition", illegal collection of 
commercial secrets, compassing the disclosure of commercial secrets, and illegal use of commercial 
secrets shall be deemed unfair competition and shall entail the imposition by the Anti-Monopoly 
Committee of Ukraine of fines prescrib ed by this Law, as well as administrative, civil, and criminal 
liability in cases stipulated by law. 
As regards test data:  Such cases of commercial use of the product exist: 
− if test data is patented in Ukraine as a produc t the person must get the authorization of the 
patentee on the use of identical product by signing of the license contract; and 
− if the person changes, improves the patented pr oduct that contains test data such person 
can patent new product as invention referring idem  test data. At the same time this person 
can use new patented product at his discreti on without the authorization of the owner of 
earlier patented product. 
The period of validity of the patent on invention in  Ukraine amount to 20 years from the date of the 
filing.  The period of validity of the patent on i nvention which object is drug, protectant of animal 
etc., that needs authorization of respective compet ent authority may be extend by solicitation of the  WT/ACC/UKR/118 
 Page 115 
 
 
 patentee on the term that equals to the period from th e date of filing and the date of permitting but no 
more than on five years. 
Validity of the patent is suspended in the case of non payment in schedule date of the annual fee for 
the maintenance of its enforcement. 
Question 264 
Paragraph 196:  According to the Draft Report, Ukraine's Civil Code protects data submitted to 
obtain marketing approval for pharmaceutical, agricultural, or chemical products utilising a 
new chemical entity in conformity with Article 39.3 of the TRIPS Agreement. 
Please describe how the Ukrainian legislation ensures that undisclosed test or other data 
submitted by an applicant to the responsible State agency in the procedure for market 
authorisation of a pharmaceutical or an agric ultural chemical product is protected against 
disclosure by the authority and against unfair commercial use by competitors. 
Please indicate in the Report whether a second applicant is prevented from relying on, or from 
referring to the original data of the first app licant, when applying subsequently for market 
authorisation for a similar product. 
Please indicate whether your legislation sets a specific term of protection for undisclosed test or 
other data of the first applicant and under what  conditions possible exceptions would apply to 
this. 
Answer:  
In accordance with Article 507 of the Civil Code  of Ukraine (effective since 1 January 2004), 
governmental bodies are obliged to protect against unfair commercial use, information which is a 
trade secret, and the generation of which requires sign ificant efforts, and whic h has been provided to 
them in order to obtain legally required perm ission for an activity related to pharmaceutical, 
agricultural, or chemical products containing new ch emical compounds.  This information shall also 
be protected by governmental bodies against disclos ure, except when the disclosure is necessary to 
ensure the protection of the population or when m easures to protect against unfair commercial use 
have not been taken. 
In accordance with the Law "On Protection against Un fair Competition", unlawful collection of trade 
secrets, disclosure of trade secrets, inducement to di sclose trade secrets, unlaw ful use of trade secrets 
are acts of unfair competition, an d punishable by the Antimonopoly Committee of Ukraine with fines 
specified by this Law, and also result in administra tive, civil and criminal liability in case provided by 
legislation.  Articles 16–19 of this Law set forth the meaning of unlawful collection of trade secrets, 
disclosure of trade secrets, inducement to disclo se trade secrets and unlawful use of trade secrets. 
Unlawful collection of trade secrets means gaining in an illegal manner, information comprising trade 
secrets under Ukraine's legislation, provided it has inflicted or could inflict damage on the economic 
entity (business person). 
Disclosure of trade secrets takes place when a pe rson in due manner entrusted with information 
comprising trade secrets under Ukraine's existing le gislation, or a person familiar with this 
information by virtue of office, makes this info rmation known to another person without the consent 
by the person authorized thereto, provided it has inflicted or could inflict damage on the economic 
entity (business person). WT/ACC/UKR/118 
Page 116  
 
 Inducement to disclose trade secrets is inducement of  a person in due manner entrusted or familiarized 
by virtue of office, with information comprising trade secrets under Ukraine's legislation to disclose this information, provided it has inflicted or c ould inflict damage on th e economic entity (business 
person). 
Unlawful use of trade secrets takes place when unlawfully gained information comprising trade 
secrets under Ukraine's legislation, is used in the manufacturing process or taken account of, while 
planning or pursuing business activities, without th e consent by the person authorized thereto. 
Ukraine's Code on Administrative Offences also im poses liability for infringements of rights to trade 
secrets. 
According to Article 164-3 of this Code, receipt, u se or disclosure of trade secrets with the objective 
of inflicting damage on other business person's business reputation or property result in fines to be 
imposed in the range of nine to eight een tax-free minimum personal incomes. 
The Ukrainian Criminal Code contains provision s on the liability for illegal use of, or illegal 
collection of, with the objective to use, informati on comprising trade secrets, and for disclosure of 
trade secrets; 
In accordance with Article 231 [of this Code], wilful acts aiming to obtain information comprising 
trade secrets, with the objective to disclose or othe rwise us this information (commercial espionage), 
as well as illegal use of such information, prov ided it has inflicted substantial damage on the 
economic entity are punishable with a fine ra nging from two hundred to one thousand tax-free 
minimum personal incomes, or with limitation of free dom for up to five years, or with imprisonment 
for up to three years; 
In accordance with Article 232 [of this Code], wilful  disclosure of trade secrets, without the consent 
the proprietor thereof, by a person familiar therew ith in connection with professional or official 
activities, if committed for self-interested or other personal motives, and inflic ting substantial damage 
on the economic entity, are punishable with a fine from 200 to 500 tax-free minimum personal 
incomes along with the ban on holding certain positi ons or pursuing certain activities for up to three 
years, or with correctional labour for up to two years, or with imprisonment for the same term. 
Please also see answer to Questions 263 and 278. 
3. Measures to Control Abuse of Intellectual Property Rights 
Question 265 According to WT/ACC/UKR/112, p.21, amendments  were introduced to the Law of Ukraine 
"On Copyright and Related Rights".  We would be interested to know what specific 
improvements these amendments bring about in the combat against piracy and how they are 
implemented. 
Please indicate what specific decisions or meas ures have been introduced, respectively will be 
introduced, to ensure efficient enforcement of those amendments. 
According to WT/ACC/UKR/112, p.21, fourteen decisions were adopted by the Cabinet of 
Ministers of Ukraine introducing effective me ans for the prevention of the manufacture and 
distribution of counterfeit products.  WT/ACC/UKR/118 
 Page 117 
 
 
 For the purpose of clarification, please explai n in more detail the specific nature of those 
effective means. 
Answer:  
On 11 July 2001, the Law "On Copyrights and Relate d Rights" was re-worded.  In particular, the 
portion on the protection of copyrights was significantly improved, namely, the law specified the 
exhaustive list of acts constituting infringements of co pyrights and related rights (it's important that 
commission of acts threatening to infringe on copyri ghts and related rights; acts to knowingly bypass 
copyright and related rights protection hardware; forgery, change or removal of information, 
particularly in electronic form, on rights management without the consent by the proprietor of copyrights or related rights, or the person mana ging them, were determined as infringements of 
rights).  The Law also specifies in detail on civil remedies.  All the mentioned amendments have 
enabled proprietors of copyrights and related ri ghts to more efficiently protect their rights. 
Below are Resolutions issued by the Cabinet of Mi nisters of Ukraine to reinforce the protection of 
copyrights and related rights, and to combat offences in this sphere: 
1. The Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for 
Circulation of Discs for Laser Reading Systems which were produced or imported prior to the 
entry into force of the Law "On Specifics of State Regulation of Activities of Economic Entities Associated with Production, Export,  and Import of Discs for Laser Reading 
Systems". The Resolution has approved the a bove named Procedure which determines the 
specifics of the circulation, in Ukraine's terr itory, of discs for laser reading systems which 
were produced or imported prior to the entry into force of the Law "On Specifics of State 
Regulation of Activities of Economic Entities Asso ciated with Production, Export, and Import 
of Discs for Laser Reading Systems". The Procedure provides that economic entities, regardless of the ownership type, carrying out ac tivities associated with the export, import, 
retail or wholesale, or hiring out of discs, must  take an inventory of discs possessed by them 
as of 21 April 2002, and submit reports on disc inventories to the [body of the] State 
Committee on Regulatory Policies and Entrepreneurship  at the place of their state registration. 
2. The Resolution of the Cabinet of Minister s of Ukraine "On Amending the Regulation on the 
Procedure for Production, Storage and Sale of Check Stamps and Affixing of Check Stamps 
to Copies of Audiovisual Works and Phonograms" No. 637 of 17 May 2002.  The Resolution has amended the Regulation on the procedure for production, storage and sale of check 
stamps, and affixing thereof to copies of a udiovisual works and phonograms. The Regulation 
was approved by the Resolution of the Cabinet of Ministers of Ukraine No.1555 of 
13 October 2000.  In particular, it has been est ablished that check stamps shall be produced 
and stored, taking account of requirements of the Regulation on the Procedure for holographic 
protection of documents and goods , approved by the Resolution of the Cabinet of Ministers of 
Ukraine No. 171 of 24 February 2001.  Also, th e term "holographic mark" has been replaced 
with the term "holographic protection (anti-forg ery) element". Besides, the Resolution states 
that the samples and technical description of ch eck stamps are to be approved by the State 
Department for Intellectual Property and agreed to by the Ministry of Internal Affairs of 
Ukraine and the Security Service of Ukraine.  The Resolution of the Cabinet of Ministers of 
Ukraine No. 1555 of 13 October 2000 has been a dditionally amended by the Resolution of the 
Cabinet of Ministers of Ukraine No. 369 of  24 March 2004 (the latte r has approved the new 
wording of the former). 
3. The Resolution of the Cabinet of Ministers of Ukraine "On Amending the Resolution of the 
Cabinet of Ministers of Ukraine No. 756 of 4 July 2001" No.638 of 17 May 2002. The Resolution has amended the List of documents to  be submitted along with the application for WT/ACC/UKR/118 
Page 118  
 
 the license for a certain economic activity, whic h (the List) was approved by the Resolution 
of the Cabinet of Ministers of Ukraine No.756 of 4 July 2001. In particular, the said List has been added to with paragra phs 55 – 57, establishing the list of documents submitted along 
with the application for the license to produce (paragraph 55), export or import (paragraph 56) 
discs for laser reading systems, and export or import equipment for manufacturing discs for 
laser reading systems (paragraph 57). 
4. The Resolution of the Cabinet of Ministers of Ukraine "On Amending the List of Licensing 
Bodies" No.639 of 17 May 2002.  The Resolution has named the licensing bodies (the State Department for Intellectual Property – in the area of disc production; the Ministry of Economy and European Integration of Ukraine – in  the area of exports and imports of discs, 
raw materials for disc production and of disc manufacturing equipment).  The amendments 
have been made to the List approved by the Resolution of the Cabinet of Ministers of Ukraine No.1698 of 14 November 2000. 
5. The Resolution of the Cabinet of Ministers of Ukraine "On Repealing the Resolution of the 
Cabinet of Ministers of Ukraine No.1149 of  7 September 2001" No.640 of 17 May 2002.  
This Resolution has repealed The Resolution of  the Cabinet of Ministers of Ukraine "On 
Approving the Procedure for Exercise of, and for Monitoring of Observation, of Intellectual Property Rights in the Process of Manufacture, Export, and Import of Discs for Laser Reading Systems" No.1149 of 7 September 2001 because of the entry into force of the Law "On Specifics of State Regulation of Activities of Economic Entities Associated with Production, 
Export and Import of Discs for Laser Reading Systems". 
6. The Resolution of the Cabinet of Ministers of Ukraine " On Amending the Resolution of the 
Cabinet of Ministers of Ukraine No.1703 of 18 December 2001" No.641 of 17 May 2002. This Resolution has amended the Resolution of th e Cabinet of Ministers of Ukraine "On Lists 
of Goods Which Exports and Im ports Are Subject to Quotas and Licensing in 2002" No. 1703 
of 18 December 2001.  Master discs have been  excluded from, and matrixes included, in the 
List. The body licensing the exports and imports of discs for laser reading systems shall be the 
Ministry of Economy and European Integration of Ukraine. Licenses to be issued should be 
agreed to with the Ministry of Science and E ducation (The State Department for Intellectual 
Property).  The List of goods for which exports and imports are subject to quotas and licensing shall be approved by the Cabinet of Mi nisters of Ukraine every year. The Resolution 
of the Cabinet of Ministers of Ukraine "On Lists of Goods the Exports and Imports of Which 
are Subject to Licensing, and Which are Subject to Quotas in 2004". No. 1996 of 
24 December 2003 is currently in effect. Th e said list includes raw materials for disc 
production, optical polycarbonate. 
7. The Resolution of the Cabinet of Ministers of Ukraine "On Major Components of Specialized 
Equipment for Production of Discs for Laser Read ing Systems, Exports and Imports of Which 
are Subject to Licensing" No.672 of 17 Ma y 2002.  The Resolution determines major 
components of specialized equipment for the production of discs for laser reading systems, the exports and imports of which are subject  to licensing.  Matrixes and molds for 
thermoplastic disc dying machines are named as  major components of specialized equipment 
for the production of discs for laser reading systems. 
8. The Resolution of the Cabinet of Ministers of Ukraine "On Amending the Resolution of the 
Cabinet of Ministers of Ukraine "On Procedure for Assigning of SID-codes to Disc 
Producers, and on Procedure for Importing of Discs equipped with these codes" No. 411 of 
28 April 2001" No. 673 of 17 May 2002. The R esolution has amended the said Procedure 
approved by the Resolution of the Cabinet of Ministers of Ukraine "On Procedure for Assigning of SID-codes to Disc Producers, and on Procedure for Importing of Discs equipped  WT/ACC/UKR/118 
 Page 119 
 
 
 with these codes" No. 411 of 28 April 2001.  The State Department for Intellectual Property, 
the IFPI (International Federation of Phono graphic Industry) and Philips Company have 
signed an Agreement on Cooperation in the area of assignment of Ukraine's SID-codes. Under this Agreement, the State Department fo r Intellectual Property has been supplied with 
a package of SID-codes to be assigned to Uk rainian producers of discs for laser reading 
systems.  This Resolution of the Cabinet of Ministers of Ukraine has been amended. 
Currently, effective is the Resolution of the Ca binet of Ministers of Ukraine "On Approval of 
the Procedure for Assigning SID-codes to Disc s for Laser Reading Systems, for Equipping 
such Discs with such codes,  and for Recognizing SID-codes with Which Imported Discs are 
Equipped" No. 623 of 26 April 2003. 
9. The Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Regulation on 
State Inspectors for Intellectual Property at th e State Department for Intellectual Property" 
No.674 of 17 May 2002.  This Resolution has approved the Regulation on the State Inspectors for Intellectual Property, which (the Regulati on) governs these inspectors' activities, their 
rights and obligations when exercising powers to carry out the systematic governmental 
supervision of economic entities' compliance with  the legislation on Intellectual Property.  
This Resolution has been amended, namely, re -worded by the Resolution of the Cabinet of 
Ministers of Ukraine No. 369 of 24 March 2004. 
10. The Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for the 
Licensing Body taking decisions to subject ec onomic entities to special measures aimed at 
termination of violations of the Law "On Specifics of State Regulation of Activities of 
Economic Entities Associated with Production, Export and Import of Discs for Laser Reading 
Systems" No.675 of 17 May 2002.  The Resolution has approved the procedure for the licensing body to decide on the special measures provided by Article 9 of the Law "On Specifics of State Regulation of Activities of Economic Entities Associated with Production, 
Export and Import of Discs for Laser Reading Systems", and the procedure for the imposition 
of the special measures to economic entities producing, exporting or importing discs, and 
equipment and raw materials for disc production. 
11. The Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for 
Submission, Storage and Disclosure (Hand-out) of Discs" No. 925 of 4 July 2002. The Resolution has approved the procedure for the submission, storage and handing out, of discs for laser reading systems. The State Committee for Regulatory Policies and Entrepreneurship 
shall monitor the timely submission of discs by producers (importers) to the Depository. 
12. The Resolution of the Cabinet of Ministers of Ukraine "On Approval of Lists of Documents 
and Groups of Goods Subject to Holographic El ement Protection" No. 932 of 5 July 2002.  
The Resolution has approved the list of documents and groups of goods subject to holographic element protection [that is, which must be supplied with holographic protection 
elements]. The List includes check stamps to be affixed to copies of audiovisual works and 
phonograms.  The Resolution of the Cabinet of Ministers of Ukraine No. 369 of 24 March 2004 has amended this Resolution, par ticularly, the List has been added in with 
check stamps to be affixed to copies of vide ograms, software applications and data bases. 
The rest of the Resolutions of the Cabinet of  Ministers of Ukraine have been repealed. WT/ACC/UKR/118 
Page 120  
 
 4. Enforcement 
Question 266 Paragraph 199:  It appears that there are proble ms with regard to efficient border control on 
the border with Russia, the border checkpoints being easily circumventable, even for heavy 
trucks.  Please inform the Working Party of an y measures taken or planned to address this 
problem. 
Answer:
 
At present, efficient border control on the border w ith the Russian Federation is complicated due to 
the fact that the Ukrainian-Russi an border remains non-demarcated. Uk raine makes continuous efforts 
to uncover and cut off channels of illegal shipment s through Ukraine's customs border of goods that 
contain intellectual property rights. Thus, in particul ar, there is in effect a Program for Counteraction 
against Smuggling and Protection of the Domestic  Market for the years 2002 - 2005, as approved by 
Resolution No. 1240 of the Cabinet of Mini sters of Ukraine, dated 23 August 2002. 
In addition, Ukraine implements a comprehensive Pr ogram of coordinated actions of law enforcement 
agencies and controlling authorities to fight against the illicit manufacturing, distribution and sale of 
audio and video products, compact disks and other articles covered by intellectual property rights, 
approved by Joint Order No. 310/527/193/240/7/1/2-103 of  the Ministry of Education and Science of 
Ukraine, the Ministry of Internal Affairs of Ukrain e, the Security Service of Ukraine, the State Tax 
Administration of Ukraine, the General Prosecutor' s Office, the Ministry of Culture and Arts of 
Ukraine, the State Committee of Ukraine for Regul atory Policies and Entrepreneurship, and the State 
Customs Service of Ukraine, dated 21 May 2003.  The Program contemplates improvements of the 
regulatory and legal framework in the area of inte llectual property and the continued undertaking of 
joint measures aimed to prevent the illicit manufact uring and distribution of products containing 
intellectual property rights. In order to prevent trespasses of the State border and circumvention of 
border checkpoints down respective routes, the number of personnel of Border Guard units was increased and additional border details were set up; the protection of the State Border was 
strengthened through deployment in 2003 of nine  new border checkpoints, and the same number of 
border checkpoints is planned for deployment in 2004; efforts are taken on a continued basis to bring border posts and adjacent land guarded by Border Guar d units to conditions, in engineering terms, that 
would make it impossible for motor vehicles to ille gally move through the State border outside border 
checkpoints (elimination of roads that run around  border checkpoints and other viable measures). 
Question 267 
Ukraine has provided some detailed statistics about IPR enforcement.  For example, in 
paragraph 198 of the Working Party Report, Ukraine noted that over the period 2001-2003, Ukrainian courts had processed 465 intell ectual property infringement cases. 
Please provide information on the outcome of these cases.  For example, how many cases 
resulted in imprisonment, and for what period of time. 
Answer:
 
The application of sanctions to infringers of intellectual property rights as imposed by a Kiev court 
decision resulted in the imprisonment for 3.5 year s of four persons found guilty of organizing an 
"underground" production and sales of counterfeit vodka aggravated by unauthorized use of a 
trademark.  In the Autonomous Republic of Cr imea, an offender was sentenced to 3.6 years 
imprisonment for similar crime. In Kiev, a citizen was sentenced to three years in prison and payment  WT/ACC/UKR/118 
 Page 121 
 
 
 of damages in the amount of UHR 4,920 (over US $ 900) for the duplication and distribution of 
infringing counterfeit copies of audiovisual works and phonograms, while in Lviv, a citizen who organized "underground" production of infringi ng items (audiovisual works on CD-ROM) was 
sentenced to 1.5 years of corrective labor, a nd duplicating equipment worth UHR 16 thousand was 
impounded. In Donetsk oblast, a private business man was fined UHR 3.4 thousand for selling 
infringing copies of phonograms on CDs. 
Question 268 
Drafting Suggestions for Working Party Repo rt (WT/ACC/SPEC/UKR/5):  The TRIPS section 
of the current draft of the Working Party Report on the Accession of Ukraine to the WTO contains a great deal of information on Ukra ine's IPR regime. Ukraine has recently provided 
further details on its legislation and institutions  that is very helpful in understanding the IPR 
regime in Ukraine. We believe that some of this  important information should be reflected in 
the Working Party Report, and provide the followi ng drafting suggestions (keyed to relevant 
paragraphs of the report): 
Paragraph 178: Add "the 1974 Brussels Convention  Relating to the Distribution of Programme-
Carrying Signals by Satellite," before "the Strasbourg Agreement" in the first line. 
Answer:
 
Ukraine has not signed the Brussels Convention On Distribution of Program-Carrying Signals 
Transmitted by Satellite (1974). Ukraine will ex amine commitments ensuing from the Brussels 
Convention, as well as the possibility of acceding to this Convention 
Question 269 
Paragraph 182:  After the first sentence, add the following: "The representative of Ukraine 
confirmed that the new revision of the Law "On Copyrights and Related Rights" fully satisfies 
the requirements of Article 18 of the Berne Convention and Article 14 of TRIPS.  He further noted that the Berne Convention applied in Uk raine without reservation.  With regard to the 
WIPO Copyright Treaty (WCT) and WIPO Perf ormances and Phonograms Treaty (WPPT), he 
stated that Ukraine had incorporated their provisions in the new revision of the Law "On 
Copyrights and Related Rights", and that Article 9 of the Constitution of Ukraine provides that international agreements and treaties whose binding nature has been approved by the 
Verkhovna Rada of Ukraine shall be incorporated in the national legislation of Ukraine." 
Answer:
 
The following text shall be added after the paragr aph: "In accordance with the Law of Ukraine of 
11 July 2001 "On Amendment of the Law of Ukraine "On Copyright and Relate d Rights"", Article 18 
of the Bern Convention On Protection of Literary  and Artistic Works apply in full scope across the 
whole of the territory of Ukraine. The Note of  the Ministry for Foreign Affairs of Ukraine 
No. 72/35-612-2189 of 3 June 2004 to the effect of lifting reservations concerning Article 18(3) of the 
Bern Convention was communicated to the World Inte llectual Property Organization with an official 
letter No. 173/018 dated 10 June 2004 of the Permanent Representative Mission of Ukraine at the UN 
and other international or ganizations in Geneva. WT/ACC/UKR/118 
Page 122  
 
 Question 270 
Paragraph 183:  At the end of the first senten ce, add: "as amended by the Law of Ukraine "On 
Amendments to Legal Acts of Ukraine with Respect to Legal Protection of Intellectual Property Rights" of 22 May 2003, No. 850-IV." 
At the end of the paragraph, add the following : "The 2003 law amends the 1993 Law of Ukraine 
"On Protection of Rights to Marks for Goods and Services" to, inter alia , ensure protection 
from the use of similar signs, as well as identica l signs; afford third parties a possibility to file 
objections against an application; and provide protection to well-known signs even to the extent that they are not registered." 
Answer:
 
It may be useful to add after the first sente nce: "as amended under the Law of Ukraine On 
Amendments to Certain Legal Acts of Ukraine w ith Respect to Legal Protection to Intellectual 
Property of 22 May 2003 No. 850-IV".  At the end of  paragraph add the following:  "Law of Ukraine 
No. 850-IV On Amendments to Certain Legal Acts of Ukraine with Respect to Legal Protection to 
Intellectual Property of 22 May 20 03 enters amendments and additi ons to the Law of Ukraine On 
Protection of Rights to Marks for Goods and Services of 15 December 1993, No. 3689- ХІІ, including 
but not limited to provision of protection against the use of similar and identical marks, enabling the third party to challenge and object against an app lication, as well as granting protection to well-known 
marks, even if they are not registered." 
Question 271 
Paragraph 185:  This paragraph should be upda ted to reflect the enactment of the Law "On 
Amendment of Certain Legal Acts With Respect to Intellectual Property Rights" and to explain 
how it amends the Law on Advertising to bring it  into conformity with Article 6quinquies of the 
Paris Convention. 
Answer:
 
It is suggested to restate Paragraph 185 as fo llows: "Responding to one of the Working Party 
Members, who noted that, pursuant to Article 6 of the Law of Ukraine "On Advertising", all 
advertising, including trademarks in foreign languages, must be pr esented in the Ukrainian language, 
and further inquired about the practical application of this measure, the Ukrainian representative noted 
that the said inconsistencies of the Law of  Ukraine "On Advertising" with Article 6 quinquies  of the 
Paris Convention had been removed with the adoption on 3 February 2004 of the Law of Ukraine "On 
Amendments to certain Legislative Acts of Ukra ine regarding Protection of Intellectual Property", 
under No. 1407-IV.  Consequently trademarks and ser vice marks are cited in the advertising as they 
are." 
Question 272 
Paragraph 186:  At the end of the paragraph, add the following: "Article 6 of the law provides 
that legal protection shall be granted to qualif ied indication of origin, subject to their 
registration remaining in force, for an indefinite period from the registration date.  Article 3 of 
the Law provides that any person, including foreign nationals, shall have the right to file a lawsuit in court requesting the invalidation or suspension of registration.  Legal tools are 
available to interested parties for the preventi on from the use of geographical indications 
constituting an act of unfair competition under Article 10 bis of the Paris Convention as set by  WT/ACC/UKR/118 
 Page 123 
 
 
 the Civil Code of Ukraine and the Law of Ukra ine "On Protection from Unfair Competition". 
They provide for civil legal, administrative and criminal liability." 
Answer:  
The following language might also be considered: Subject to Clause 3 of Article 6 of the Law of Ukraine On Protection of Rights to Marks [Signs] for 
Goods and Services, no registration as signs may be gran ted to indications that are identical or similar 
to an extent that they may be confused with qualif ied indications of goods origin (including wines and 
spirits) protected under the Law of Ukraine On Protection of Rights to Indication of Goods Origin. Such indications may only be unprotected elements of  signs owned by persons authorized to use said 
indications. 
Question 273 Paragraph 190:  At the end of the first sentence,  add:  "as amended by the Law of Ukraine "On 
Amendments to Legal Acts of Ukraine with Respect to Legal Protection of Intellectual Property Rights" of 22 May 2003, No. 850-IV." 
Answer:
 
Ukraine concurs. 
Question 274 
After the sentence add:  "The term of protection was 20 years from the filing date." "Decree 
No. 298 of the Ministry of Science and Educ ation of Ukraine of 13 May 2002 approves the 
terms, conditions and procedures for extension of  patents on pharmaceuticals, means of animals 
protection, means of plants protection, etc., for an additional period of protection of up to 
five years." 
Answer:  
Ukraine concurs. 
Question 275 
At the end of the paragraph, add the following sentence: "In response to a Member's question, 
the representative of Ukraine confirmed that Ar ticle 29 of the Law of Ukraine "On Protection 
of Rights to Inventions and Utility Models", as  amended, provides for the reversal of the burden 
of proof for process patents in accordance with the requirements of Article 34 of TRIPS." 
Answer:  
Ukraine concurs. 
Question 276 
Paragraph 192:  At the end of the paragraph, add the following: "On 17 January 2002, the 
Verkhovna Rada of Ukraine approved the Law of Ukraine "On Amendments to the Law of 
Ukraine of Protection of Rights to Plants Vari eties" that revised the wording of the law." WT/ACC/UKR/118 
Page 124  
 
 Answer:
 
Ukraine concurs. 
Question 277 
Paragraph 193:  Add ", as modified in Geneva on 10 November 1972 and 23 October 1978" at 
the end of the paragraph. 
Answer:  
Ukraine concurs. 
Question 278 
Paragraph 196:  This paragraph will need to be expanded to explain not only how data is 
protected against disclosure, but also against un fair commercial use.  Specifically, Ukraine 
should explain the term of protection for test da ta, and whether Ukraine allows others to rely on 
that data by granting marketing approval to others based on the originator's data. 
Answer:  
In accordance with Article 507 of the Civil Code  of Ukraine (entered into effect as of 
1 January 2004), state power authorities are require d to provide protection against unfair commercial 
use of information constituting a commercial secret and generated through c onsiderable effort and 
made available to such power authorities with th e view of receiving legally prescribed permits for 
operation related to pharmaceutical, agricultura l chemical products containing new chemical 
compounds.  The information is protected by stat e power authorities against disclosure except for 
instances when such disclosure is required in the in terests of public protection or when no measures 
have been taken by the holder of the information to protect it against unfair commercial use had been 
used.  This Article is fully compatible with prov isions of Article 39 (3) of the TRIPS Agreement. 
In addition to that, Article 508 of the Civil Code also  provides that the term of validity of intellectual 
property rights to a commercial secret is limited by the period of existence of the entirety of characteristics of commercial secrets. 
Subject to the Law of Ukraine On Protection Agai nst Unfair Competition, any unlawful collection of 
commercial secrets, disclosure commercial secrets or persuasion to disclose commercial secrets, an 
unlawful use of commercial secrets constitutes acts of unfair competition and will entail imposition by the Antimonopoly Committee of Ukraine of fines as provided under said Law, as well as administrative, civil and criminal liability in cases c overed by applicable laws. Articles 16 – 19 of the 
said Law contain descriptions of such terms as unlawful collection of commercial secrets, of disclosure commercial secrets or persuasion to disclose commercial secrets, unlawful use of 
commercial secrets. 
Unlawful collection of commercial secrets is de fined as obtaining by unlawful means information 
constituting a commercial secret under the laws of Ukrain e, to the extent that this has or could have 
inflicted damage to a business entity (business person). 
Disclosure of commercial secret is providing another person, without the consent of an authorized 
person, with information constitutin g a commercial secret under the laws of Ukraine by a person to 
who such information was duly entrusted or who b ecame aware of this information in line with  WT/ACC/UKR/118 
 Page 125 
 
 
 performing his/her duties, to the extent that this has or could have inflicted damage to a business 
entity (business person). 
Persuasion to disclose a commercial secret is defined as inducement of a person to whom the 
information constituting a commercial secret under th e laws of Ukraine was duly entrusted or who 
became aware of this information in line with performing his/her duties to disclosing such information 
to the extent that this has or could have inf licted damage to a business entity (business person). 
Unlawful use of a commercial secret is defined as in troduction into production or consideration at the 
planning or operation stage of information constit uting a commercial secret under the laws of Ukraine 
and unlawfully obtained without the consent of a duly authorized person. 
The Code of Administrative Offences of Ukraine also  provides for liability for violation of rights to a 
commercial secret. 
Pursuant to Article 164-3 of this Code, obtaining, using or disclosing a commercial secret with the 
view of inflicting damage to another business person's business reputation or assets shall entail 
imposition of a fine in the amount equal to the sum within the range of nine to eighteen untaxed private incomes. 
The Criminal Code of Ukraine contains provisions st ipulating liability for unlawful collection with the 
view to use, or unlawful use of information constituting a commercial secret under the laws of 
Ukraine, and liability for commercial secret disclosur e: as per Article 231, deliberate actions aimed at 
obtaining information constituting a commercial secret  under the laws of Ukraine, with the view to 
disclosure or other use of such information (c ommercial espionage), and unlawful use of such 
information inasmuch as this brought about substa ntial damage to another business entity shall be 
punishable by a fine in the amount ranging within two hundred to one thousand equivalents of 
untaxed private incomes; or judicial restraint for a term of up to three years; as per Article 232, 
deliberate disclosure of a commercial secret wit hout its holder's consent by a person who became 
aware of this information in line with his/her duty insofar as such disclosure was committed for self-
interest or other personal motives  and inflicted substantial damage  to a business entity – shall be 
punishable by a fine in the amount ranging within tw o hundred to five hundred equivalents of untaxed 
private incomes with a prohibition to  occupy certain offices or engage in certain types of activities for 
a period of up to three years, or correctional works for a period of up to two years, or imprisonment for the same term. 
Please also see the answer to Question 263. 
Question 279 
Paragraph 197:  Please provide information on Ukraine's agreement to amend its Optical 
Media Disk (ODM) licensing laws concerning ma nufacture, export and import of laser-readable 
discs, and an update on the status of the amendments. 
Answer:
 
Please see the answer to Question 249. Question 280 Paragraph 200:  Add to the end of the paragraph the following: "In reply to question about how 
damages are calculated, and whether pre-establis hed damages are available, the representative 
of Ukraine explained that, according to provision s of procedural laws, each party must provide WT/ACC/UKR/118 
Page 126  
 
 evidence of circumstances cited in corroboration of its claims and objections. Current laws do 
not set out methodologies to be applied in calculating damages caused by violations of intellectual property rights  i.e., the person whose rights are infringed upon bears the burden of proving the amount of actually suffered damage. 
The following is meant by damage: 
− losses suffered by a person in consequence of his/her rights violation; 
− expenses that a person has made or has to  make to restore his/her infringed right; 
and 
− potential income that a person could have gained but for the infringement of his/her 
rights. 
The representative of Ukraine also explained that  pursuant to the Order of the High Economic 
Court No. 19, dated 26 July 2001, boards institut ed in economic courts are charged with judging 
cases, in particular, related to: 
− invalidation of legal protection documents; 
− early termination of validity of legal protection documents; 
− determination of true owners of legal protection documents; 
− conclusion and execution of licensing agreements; 
− infringements on property rights of owners of legal protection documents; 
− granting of compulsory licenses; 
− the right of prior use. 
Economic courts also pass judgments on other ca ses related to the protection of rights provided 
by intellectual property laws. 
Decisions adopted by economic courts in ca ses pertaining to intellectual property where the 
applicants' claims are upheld in full or in part, may administer: 
− payment of moral (non-property) damages; 
− payment of damages for incurred losses; 
− recovery of income gained by the offender as a result of the committed infringement; 
− payment of compensation in place of da mages for incurred losses or recovery of 
income; 
− imposition of fine; 
− prohibition to import certain goods into th e customs territory of Ukraine and to take 
certain goods out of it; 
− injunction obliging the culprits to discontinue the violation of rights; 
− injunction obliging the culprit to discl ose in mass media the information on 
committed offence; and 
− the withdrawal or seizure of all goods in r espect to which it was determined that 
such goods were manufactured with rights infringements. 
From 1 March 2003, specialized court chambers of the High Economic Court of Ukraine and of 
economic courts of appeal began operations, ch arged with judging cases related to economic 
disputes pertaining to protection of rights to intellectual property objects.  In addition, the 
appropriate specialization of judges was introdu ced in local economic courts.  He added that 
current Ukrainian legislation does not lay down a procedure for the destruction of counterfeit 
goods.  A decision to destroy counterfeit goods is ta ken by court, and the execution of such court 
decisions is assigned to the State Executors' Service."  WT/ACC/UKR/118 
 Page 127 
 
 
 Answer:  
Ukraine concurs. 
Question 281 
Paragraph 201:  At the end of the paragraph,  add the following: "In response to a Member's 
question, the representative of Ukraine explained that provisional measures may be ordered in 
civil cases.  The Law "On Introducing Amendments  to Certain Legislative Acts of Ukraine on 
Legal Protection of Intellectual Property" of 22 May 2003 introduced the appropriate amendments to the Code of Civil Proceedings of  Ukraine. According to Article 621 of the Code, 
a person who have good reasons to suspect that his/her rights are being infringed upon, or that there is a real threat of such infringement, is granted the right to submit to court a request for 
adequate preventive measures to be taken.  Suc h preventive measures may include inspection of 
premises where activities related to such rights  infringement are taking place, and the 
attachment of property in possession of the person in regard to whom the preventive measures are being taken (Article 622).  The applicant's request of such preventive measures may be secured by a pledge the amount of which is determined by court.  The performance of 
preventive measures is administered by court.  Following the filing by applicant of a claim, 
preventive measures serve as means for securi ng evidence or means of securing the claim 
(Article 623). 
He further explained that provisional measures m ay be requested prior to an action being filed 
for a determination on the merits of the claim.  According to Article 621 of the Code of Civil Proceedings, a person who have good reasons to be lieve that his/her rights have been infringed 
upon, or there is a real threat of such infringeme nt, is granted the right to submit to court a 
request for the performance of preventive meas ures prior to filing a formal claim in court." 
Answer:
 
Ukraine concurs. 
Question 282 
Paragraph 202:  At the end of the paragraph, add the following: 
"In reply to a Member's question regarding th e circumstances in which the administrative 
procedures and legal remedies provided under the Administrative Infringement Code are 
applicable, rather than the civil judicial pro cedures and remedies under the newly adopted Civil 
Code, the representative of Ukraine explained that  administrative procedures envisaged by the 
Code of Administrative Offences for the protectio n of the rights, are applied in the event of 
detection of the offences on the part of execu tive and local self-government body officials and 
other officials.  Protection of the rights is effectuated by way of conducting the administrative procedure of imposing administrative penaltie s provided for in Article 24 of the Code of 
Administrative Offences." 
Answer:
 
Ukraine concurs. 
Question 283 
Paragraph 203:  At the end of the paragraph, add the following: WT/ACC/UKR/118 
Page 128  
 
 "In response to Members' questions, he indicated that, according to information provided by 
the State Customs Service of Ukraine, in the first quarter of 2003, in the process of transfer 
across the customs border of Ukraine, the St ate Customs Service seized a total of 6.888 
thousand CDs for laser- readable systems and 892 units of other audio and video products. In 
the State Customs Service-maintained register of  goods containing intellectual property objects, 
currently there are 23 names of goods produced bo th by domestic and foreign manufacturers. 
As of 1 July 2003, on 15 occasions customs bodies  suspended clearance procedures in respect to 
goods suspected of being counterfeit. Pursuant to paragraph 6 of the Decree "on the regulations 
for the procedure of registration and transporta tion of goods subject to intellectual property 
rights across the customs border of Ukraine", as of 1 July 2003, there are 23 names of goods 
entered in the State Customs Service-maintain ed register of goods containing intellectual 
property objects, and appropriate technical entering procedures are currently under way in respect to 13 more goods. With regard to the amount charged for filing an application to suspend the release of goods, he indicated that the rates of fee for entering goods containing 
intellectual property objects in the State Custom s Service-maintained register were fixed in the 
Decree of the Cabinet of Ministers of Ukraine No. 413 of 28 April 2001 at the following levels: 
− for the one-year registration term: US$ 400 for the first good containing an 
intellectual property object, and US$ 200 for each of the further goods containing the same intellectual property object; 
− for the six-month registration term:  US $ 200 for the first good containing an 
intellectual property object, and US$ 100 for each of the further goods containing the same intellectual property object; 
− for the extension of the registration term by six months or one year:  US$ 100. 
Customs fees are paid in Ukrainian national currency according to the rate of exchange 
established by the National Bank of Ukraine as of the date of payment. 
As of this date, the State Customs Service of Ukraine requires the submission of a letter of 
guarantee (guarantee obligation) without indication of the amount of guarantee. No deposition of cash pledge or guarantee is required.  The purpose of the guarantee is to secure the compensation of costs of storing the goods in respect to which customs clearance procedures 
have been suspended. The rates of fees for the storage of goods at customs warehouses were 
fixed in the Decree of the Cabinet of Ministers of Ukraine No. 65 of 27 January 1997.  An application for entering a good containing intellectual property objects in the State Customs Service-maintained register is submitted by the owner of the right or a representative thereof to 
the central apparatus of the State Customs Servi ce.  The register is maintained in electronic 
form making use of a specially developed info rmation software package of the State Customs 
Service of Ukraine's Integrated Computerized Information System named "Registration of 
Goods Containing Intellectual Property Objects" . The package and the system based on satellite 
communications, allows customs bodies to receive information on goods entered in the register, 
on the date of registration.  The access to the t ool is limited and reserved to specially authorized 
officials of customs bodies.  Clause 25 of the Regulations gives a customs body the right to 
suspend, on its own initiative, the customs clearance of goods containing intellectual property 
objects but only if such goods are currently ente red in the State Customs Service-maintained 
register. As of this date, all suspensions of customs clearance procedur es in respect to goods 
suspected of being counterfeit, were undertaken by customs bodies on the basis of Clause 25 of 
the Regulations. Involved there were goods entered  in the State Customs Service-maintained 
register (not referring to actions ex officio).  As of 1 July 2003, there were 15 instances of 
decisions by customs bodies to suspend custom s clearance procedures in respect to goods 
suspected of being counterfeit. Information on categories of goods and on quantity of goods in 
consignments the customs clearance of which were su spended, is classified.  In addition, customs  WT/ACC/UKR/118 
 Page 129 
 
 
 bodies do not seize such goods but simply suspend the customs clearance procedures.  
According to Ukrainian law, a decision on seizu re may only be taken by court. Where a court 
decreed seizure of goods, such goods subject to confiscation are transferred to the Executors' Service subordinated to the Ministry of Justi ce of Ukraine.  As of 1 July 2003, Ukrainian 
customs bodies have not yet received any court decisions on seizure of counterfeit goods. 
Customs bodies do not adopt decisions on the merit of cases.  All such decisions are taken solely 
by courts." 
Answer:
 
Ukraine concurs. 
Question 284 
Paragraph 203: According to the draft Report , Ukraine's Customs Code (Articles 255 to 258 
and 245) and the Cabinet of Ministers' Regulation "On the Procedure on Registration and Transfer Across Ukraine's Border of Goods Contai ning Intellectual Property Objects" No. 412 
of 28 April 2001 authorize customs authorities, at the request of a right holder, to suspend the release of goods suspected of containing a count erfeit trademark or infringing copyright. 
Please indicate what specific decisions or meas ures have been introduced, respectively will be 
introduced, to ensure efficient enforcement of those amendments. 
Answer:
 
The Customs bodies, at the proprietor's request, are empowered to stop goods from crossing the 
border provided they are suspected of bearing a c ounterfeited trademark or infringing on copyrights. 
These measure are specified in the Ukrainian Cust oms Code (Articles 255 - 258 and 345), and in "the 
Procedure for Registration of, and Transfer across  Ukraine's Customs border of Goods Containing 
Objects of Intellectual Property" approved by the Resolution of the Cabinet of Ministers of Ukraine 
No. 413 of 28 April 2001. According to the State Cu stoms Service of Ukrain e, Customs bodies seized 
34,411 CDs and 13,622 units of other audiovisual work s, in 2003.  Over the first quarter of 2004, 
Customs bodies have seized 17,725 CDs and 236 a udio- and videocassettes; 28,832 CDs and 270 
audio- and video- cassettes over 5 months of 2004.  As of 1 June 2004, the Ukrainian State Customs 
Service-maintained Register of Goods containing Ob jects of Intellectual Property is comprised of 67 
goods (products) rights to which are held by Ukra inian and foreign producers. Since the mechanism 
for protection of intellectual property rights was launched at the Customs border, Customs bodies 
have 19 times ruled to suspend customs clearance of goods suspected of being counterfeited.  The 
Resolution of the Cabinet of Ministers of Ukraine No. 413 of 28 April 2001 has established the 
following fees for the inclusion of goods containi ng objects of intellectual property in the State 
Customs Service-maintained Register: 
− registration for a one year period:  US$ 400 for the first product containing object of 
intellectual property, and US$ 200 for every next product containing objects of intellectual property; 
− registration for a six month period:  US$ 200 for the first product containing objects of 
intellectual property, and US$ 100 for every next product containing objects of 
intellectual property; and 
− for the prolongation of the registration for add itional 6 or 12 months:  US$ 100.  The fee 
is paid in the Ukrainian national currency at the exchange rate set by the National Bank of 
Ukraine on the payment day. WT/ACC/UKR/118 
Page 130  
 
 At present, the State Customs Service of Ukraine re quires that a Letter of Guarantee with no amount 
of guarantee specified, be submitted.  At the sa me time, no cash or guarantee are required to be 
deposited. Such guarantee is deigned to ensure the coverage of costs relate d to the storage of goods, 
customs clearance of which is suspended. Rates of payment for the storage of goods in Customs 
bonded warehouses are specified by the Resolution of the Cabinet of Ministers of Ukraine No. 65 of 
27 January 1997.  The proprietor or their represen tative apply to the Central Office of the State 
Customs Service for goods containing objects of intell ectual property to be included in the Register. 
The latter is maintained in electronic form using th e State Customs Service's integrated computerized 
information system named "Registration of Goods Containing Objects of Intellectual Property". The system is based on satellite communications which enables Customs bodies to obtain information on 
goods included in the Register as of the day of registration thereof.  Access to the system is limited 
and allowed only to specifically authorized Cust oms officers. Paragraph 25 of the Procedure for 
Registration of, and Transfer across Ukraine's Customs border of Goods Containing Objects of 
Intellectual Property, approved by the Resolution of  the Cabinet of Ministers of Ukraine No. 412 of 
28 April 2001 (hereinafter referred to as the Pr ocedure), empowers Customs bodies to suspend, at 
their initiative, customs clearance of goods containi ng objects of intellectual property, provided the 
goods are entered into the State Customs Service' s Register. As of today, Customs bodies always 
suspended customs clearance of goods pursuant to pa ragraph 25 of the Procedure, that is, of goods 
suspected of being counterfeited. Subjected to the suspension were goods entered into the State 
Customs Service's Register (those not related to measures ex officio).  Customs bodies do not 
confiscate these goods, but merely suspend customs cl earance thereof.  Under Ukrainian legislation, 
only courts may rule to have goods confiscated. Go ods subject to confiscation in accordance with a 
court ruling, are handed over to the State Enforc ement (Execution) Service, subordinated to the 
Ministry of Justice of Ukraine. 
POLICIES AFFECTING TRADE IN SERVICES 
Question 285 
We would ask Ukraine to indicate under the s ervices chapter that "measures described in the 
Working Party Report will in no way affect Uk raine's obligations deriving from its specific 
GATS commitments". 
Answer:
 
Ukraine concurs. 
Question 286 
Paragraph 207:  Correction:  Last amendmen t of Law "On Banks and Banking" No. 2121-III 
dates to 5 June 2003. 
Correction:  According to information availabl e to us, a draft allowing foreign banks to 
establish branches in Ukraine was rejected by the Parliament in March 2004.  Please clarify the 
situation. 
Answer:  
The banking sector was regulated by the Law "On Banks and Banking" No. 2121-III of 
7 December 2000, as amended by the Laws of Uk raine (last amendment of Law "On Banks and 
Banking" No. 1294-IV dates to 11 November 2003).  WT/ACC/UKR/118 
 Page 131 
 
 
 The National Bank of Ukraine developed and submitte d to the Supreme Rada for consideration the 
draft law "On Amending the Law "On Banks and Banking" (with regard  to the entitlement of foreign 
banks to set up branches in Ukraine's territory )" No. 3561 which was voted down on 4 March 2004. 
Now, the work is being conducted in order to have the said draft law considered by the Supreme Rada 
once again. 
Question 287 On the following issues, we would wish to see paragraphs included in the Draft Working Party 
Report: 
We ask Ukraine to guarantee transparency of licensing requirements and procedures, 
qualification requirements and procedures as well as of other authorisation requirements, in 
particular with respect to obtaining, extending , renewing, denying and terminating licences and 
other approvals required to provide services in Uk raine's market and appeals of such actions. 
Ukraine's licensing procedures and conditions sh ould not in themselves act as a barrier to 
market access and should not be more trade restrictive than necessary. 
Ukraine should publish:  (1) a list of authorities responsible for authorising, approving or 
regulating those service sectors in which Ukrain e makes specific commitments and (2) Ukraine's 
licensing procedures and conditions. Ukrain e should ensure that these procedures and 
conditions are: 
− pre-established, publicly available, and based on objective criteria; 
− identify activities, terms and conditions; 
− include all critical information for valid completion of applications; 
− include relevant timeframe and critical deadlines (at least indicative ones); and 
− identify the competent authority. 
Answer:
 
The Law "On Licensing of Certain Types of Economic Activity" No. 1775-III of 1 June 2000 
determines the types of economic activity subject to licensing, the procedure for the licensing thereof, 
establishes governmental supervision in the licensing  sphere, and the liability of economic entities and 
licensing bodies for violating the licensing legislation. 
This Law applies to all economic entities. The main principles of State policy in the licensing sphere are: 
− securing of equal rights, and the lawful interests of all economic entities; 
− protection of rights, lawful interests, lives and health of individuals, protection of the 
environment, and ensuring the State's security; 
− establishment of a uniform procedure for the licensing of economic activity in Ukraine's 
territory; and 
− establishment of a single list of types of economic activity subject to licensing. 
Article 3.2 states that licensing may not be used to limit economic competition. The license is a uniform document, which allows th e conduct of a certain type of economic activity 
which, in accordance with legislation, is subject to a limitation. WT/ACC/UKR/118 
Page 132  
 
 The State policy in the licensing sphere is carried out by the Cabinet of Ministers of Ukraine, the 
specifically authorized body for licensing, and also by the Cabinet of Ministers through specified bodies of the executive branch of government, a nd [local] councils' execu tive bodies specifically 
authorized to license certain types of economic activit y.  As required by Law, the list of institutions 
responsible for the issuing of licenses is  published in the Government's press. 
The said Law guarantees the transparency of licensing requirements and procedures, of qualification 
requirements and procedures, and of other procedures, in particular, with regard to receipt, renewal, 
re-receipt, refusal and suspension of licenses and ot her authorizations needed to render services in 
Ukraine's market, and of procedures for cha llenging these actions.  The Ukrainian licensing 
procedures and conditions are not, of themselves, ba rriers for the access to the market or limiting 
more than is necessary to achieve their aims. 
The Ukrainian licensing procedures and conditions: 
− have been established in advance, are av ailable to the public and based on objective 
criteria; 
− determine the activity, time periods and conditions; 
− include all the vital information so  that applications are complete; 
− include appropriate time frames and deadlines (at least indicative ones); and 
− determine competent bodies. 
Question 288 
More specifically, we ask that for those servic es included in Ukraine's Schedule of Specific 
Commitments, Ukraine will ensure that: 
(a) Ukraine's licensing procedures and condi tions will be published prior to becoming 
effective; 
(b) In that publication, Ukraine will specify rea sonable time frames for review and decision 
by all relevant authorities in Ukraine' s licensing procedures and conditions; 
(c) Applicants will be able to request licensing without individual invitation; 
(d) Any fees charged, which are not deemed to include fees determined through auction or a 
tendering process, will be commensurate with the administrative cost of processing an 
application; 
(e) The competent authorities of Ukraine will, after receipt of an application, inform the 
applicant whether the application is consid ered complete under Ukra ine's domestic laws 
and regulations and in the case of incomplete  applications, will identify the additional 
information that is required to complete th e application and provide the opportunity to 
cure deficiencies; 
(f) Decisions will be taken promptly on all applications; (g) If an application is terminated or denied , the applicant will be informed in writing and 
without delay the reasons for such action.  The applicant will have the possibility of 
resubmitting, at its discretion, a new app lication that addressed the reasons for 
termination or denial;  WT/ACC/UKR/118 
 Page 133 
 
 
 (h) Where Ukraine requires an examination to li cence professionals, such examinations will 
be scheduled at reasonable intervals. 
Answer:  
As for services included in the Schedule of Specifi c Obligations, Ukraine guarantees the fulfilment of 
licensing procedures and conditions specified by appropriate legislative acts, namely: 
(a) Ukraine's licensing procedures and conditions will be published prior to becoming effective; 
(b) Ukraine will specify reasonable time fram es for review and decision by all relevant 
authorities in Ukraine's licensing procedures and conditions; 
(c) Applicants will be able to request licensing without individual invitation; (d) Any fees charged, which are not deemed to include fees determined through auction or a 
tendering process, will be commensurate with the administrative cost of processing an 
application; 
(e) The competent authorities of Ukraine will, after receipt of an application, inform the applicant 
whether the application is considered complete  under Ukraine's domestic laws and regulations 
and in the case of incomplete applications, w ill identify the additional information that is 
required to complete the application and provide the opportunity to cure deficiencies; 
(f) Decisions will be taken promptly on all applications; (g) If an application is terminated or denied, th e applicant will be informed in writing and without 
delay the reasons for such action.  The appli cant will have the possibility of resubmitting, at 
its discretion, a new application that addr essed the reasons for termination or denial; 
(h) In case of examination to licence professiona ls, such examinations will be scheduled at 
reasonable intervals. 
Question 289 
Paragraph 203:  According to the draft Report , Ukraine's Customs Code (Articles 255 to 258 
and 245) and the Cabinet of Ministers' Regulation "On the Procedure on Registration and Transfer Across Ukraine's Border of Goods Contai ning Intellectual Property Objects" No. 412 
of 28 April 2001 authorize customs authorities, at the request of a right holder, to suspend the 
release of goods suspected of containing a count erfeit trademark or infringing copyright. 
Please indicate what specific decisions or meas ures have been introduced, respectively will be 
introduced, to ensure efficient enforcement of those amendments. 
Answer:
 
See the answer to Question 283. Question 290 We ask Ukraine to guarantee that that for th ose services that will be included in Ukraine's 
Schedule of Specific Commitments, relevant regul atory authorities will be separate from, and 
not accountable to any service suppliers they regulate. WT/ACC/UKR/118 
Page 134  
 
 Answer:
 
Ukraine guarantees that for those services which w ill be included in the Schedule of Specific 
Commitments, the appropriate regulatory bodies ar e separated from, and not subordinate to, any 
providers of services which are governed by them. 
Question 291 
We ask Ukraine to guarantee that the foreign suppliers remain free to choose their partners. 
Answer:  
Ukraine guarantees that foreign suppliers ha ve the right to choose their partners. 
Question 292 
Paragraph 223:  This paragraph needs to be updated following recent developments related to 
the Single Economic Space. 
Answer:  
On 20 April 2004 the Parliament of Ukraine ratified the Agreement on creation of Single Economic 
Space and in conformity with the reservations made in time of ratification Ukraine will take part in 
forming and functioning of Single Economic Space ( SES) to the extent agreeable to the Constitution 
of Ukraine. 
At the same time Agreement on creation of SES a nd the corresponding Concept to the Agreement, 
which according to the Article 3 of the Agreement is an integral part of the premise, are the 
documents, which determine the ge neral background of cooperation a nd define only intentions of 
participating countries as regards to reforming economic relations. 
In order to develop the Agreement signed as we ll as Complex of main measures on forming SES in 
the future the legislation of SES creation should be elaborated and adopted to regulate the 
participating countries relations in the separ ate spheres and areas of economic cooperation. 
According to the Protocol of the 9th meeting of the High Level Group (HLG) on the 
29 November 2003 and 19 December 2003 the Partie s progressed upon analyzing national legislation 
currently in force and preparing draft technical assignments for realizing the Complex of main 
measures on forming SES. 
According to the Protocol of the 10th meeting of the HLG the work on the Plan of action on realizing 
the technical assignment was carried out.  The cons ultations included discussing terms for agreements 
development and cost of work to be carried out. 
On the 3 April 2004 in Astana, Kazakhstan, the 11th meeting of the HLG on forming SES took place. 
During the meeting the Parties agreed upon consolid ated Plan of action on realizing the technical 
assignment.  According to the Protocol decision of  the mentioned meeting the effort on organizing 
work on preparing draft documents and other materials necessary for creating SES had been taken. 
On the 22 May 2004 in Yalta, Ukraine, the 12t h meeting of the HLG on forming SES took place. 
During the meeting the Provision on expert-managi ng group of SES and Pro cedure of development 
draft international legislative docum ents on forming SES were approved.  WT/ACC/UKR/118 
 Page 135 
 
 
 On the 24 June 2004 in Moscow, Russian Federati on, the 13th meeting of the HLG on forming SES 
took place.  During the meeting the following actions had been taken: 
− documents to regulate organizational, financia l and legal issues of preparing international 
legislative documents on form ing SES were approved; and 
− the list of drafts of international legisl ative documents on forming SES was agreed. 
- Transparency 
Question 293 
We are very impressed with Ukraine's transp arency framework.  We would like to see 
additional information on these measures, an d seek a commitment to consolidate them in 
Ukraine's accession protocol. 
Answer:  
Ukraine considers that the commitment language in paragraph 217 of WT /ACC/SPE/UKR/5 covers 
transparency requirements of the WTO Agreement. 
Question 294 
Do the "effective normative acts" referred to in  paragraph 214 include administrative rulings 
on customs issues such as valuation, licensing, fees, and application of taxes, TBT, SPS, and 
other domestic requirements to imports?  If not, please outline the actual scope of the 
requirement. 
Is provision made in all cases for "draft normative acts," including administrative rule making, 
to be published and provision made fo r receiving comments on the drafts? 
Answer:  
As established by current Ukrainian law, normative and legal acts of Ukraine are: the Constitution of 
Ukraine; the Codes of Ukraine; the Laws of Ukrain e; acts of the President of Ukraine; acts of the 
Verkhovna Rada (Parliament) of Ukraine and of the Cabinet of Ministers of Ukraine; normative and 
legal acts (documents) issued by national executive authorities; decisions of the authorities of the 
Autonomous Republic of Crimea, local state admi nistrations, and local government bodies. Thus, 
administrative decisions on matters of customs clea rance, specifically, customs valuation, licenses, 
fees and charges, imposition of taxes, applicati on of technological standards, and sanitary and 
phytosanitary measures are contained in provisions  of the above-listed normative and legal acts. 
Decisions contained in provisions of the Laws of Ukraine, acts of the President of Ukraine, the Verkhovna Rada of Ukraine, and th e Cabinet of Ministers of Ukrain e are mandatory for execution at 
all levels of authority. Decisions of national ex ecutive authorities, the authorities of the Autonomous 
Republic of Crimea, local state administrations, and local government bodies are binding only within 
the scope of competence of such bodies.  In additio n, within the framework of multilateral accords to 
which Ukraine is a party, certain Decisions may be taken regarding customs clearance, fees and charges, as well as imposition of taxes. Issues raised could also be regulated within the framework of 
bilateral and multilateral international treaties of  Ukraine, which normative and legal acts are not 
subject to publication in periodical editions but are accessible, in Ukrainian, at the web-site 
www.rada.gov.ua.  Effective normative acts are pub lished in serial publications "Uriadoviy Kuryer" 
("Government Courier") and "Golos Ukrayiny" ("Voi ce of Ukraine") and are available in Ukrainian, 
Russian, and English at the fee web-site www.nau.ki ev.ua, or in Ukrainian and English at the free 
web-site www.welcometo.kiev.ua. WT/ACC/UKR/118 
Page 136  
 
 Question 295 
Paragraph 214 indicates that effective normat ive acts were published in Uryadoviy Courier and 
Holos Ukrayiny and posted in Ukrainian,  Russian and English at www.nau.kiev.ua. 
Unfortunately when you use the English version of this web site and click on new arrivals, you then land on a page in Ukrainian, which is not helpful for someone who doesn't understand 
Ukrainian.  When you click on "search of do cuments", you find the documents, but only the 
first part of the first page appears on the screen and it is impossible to print it. 
Please indicate a web site where the full text of effective normative acts is available in English 
(possibility to print and/or download the full text) and free of charge. 
Answer:
 
Re the issue of printing out the texts of current normative and legislative acts of Ukraine in English 
from the web-site www.nau.kiev.ua.: the web-site con cerned is not free. Terms for the use of the site 
may be found only by applying the function "Search of documents", then "Entry".  The electronic versions of the documents are also accessible in Ukrainian and English at a free web-site 
www.welcometo.kiev.ua 
- Trade Agreements Question 296 Paragraph 220:  Selective elimination of taxat ion and fees is not covered by Article XXIV. 
Ukraine's exemption of imports from Russia fr om domestic taxation is in conflict with the 
provisions of Article I.  How does Ukraine in tend to resolve this problem prior to accession? 
Answer:
 
In accordance with free trade agreements, goods impor ted into Ukraine are not subject to a duty but a 
value-added tax is collected on ge neral conditions in relation to all goods. The exceptions from this 
list include crude oil, natural gas c ondensate, natural gas, as well as non-irradiated fuel elements (fuel 
rods), and rods with capacitors and security an d management rods (bumabic absorbers) supplied 
under the free trade agreement w ith the Russian Federation. 
The above exemptions are associated with the f act that Russia applies VAT to export of these 
products to Ukraine. 
Having good understanding of the issue, Ukraine is maki ng effort to resolve the issue, i.e. is giving 
due regard to possible approaches and practical steps.  WT/ACC/UKR/118 
 Page 137 
 
 
 ANNEX 1 
Customs Duty Exemptions and Tariff Privileges and Preferences  
1.  Customs Duty Exemptions  
The following is exempted from payment of customs duty: 
− vehicles performing regular international tran sportation of cargo, ba ggage, and passengers 
as well as material and technical supplies and outfit, fuel, food, and other property 
necessary for their normal operation while they are on the road and at intermediate stops, 
or bought abroad to repair above vehicl es if any accident (breakdown) takes place; 
− material and technical supplies and outfit, fuel, raw materials for industrial processing, 
food, and other property that exits the borders  of the customs territory of Ukraine to 
ensure production activity of Ukrainian ships and ships leased (chartered) by Ukrainian 
enterprises and organizations engaged in sea fishery, as well as the output of the sea 
fishery that enters the cust oms territory of Ukraine; 
− Ukrainian currency, foreign currency, and securities; 
− goods and other items that are subject to c onversion to the ownership of the state in 
instances stipulated by laws of Ukraine; 
− goods and other items that, prior to their p assage across the customs border of Ukraine, 
have become as a result of damage unfit for use as manufacture or materials; 
− items entered into Ukraine for official and private use or exited the border by 
organizations and persons that, in accordance with international agreements of Ukraine 
and laws of Ukraine, enjoy the right of duty-free entry and exit of such items; 
− goods and other items originated on the customs territory of Ukraine if they are entered 
back onto that territory without processing or  reworking, as well as goods and other items 
of foreign origin that exit the border of the customs territory of Ukraine without 
processing or reworking; 
− goods and other items that enter the customs terr itory of Ukraine again, if they have been 
originated in another territory, provided cu stoms duties on these goods were paid in full 
when they entered the customs territory of  Ukraine for the first time, if these goods 
temporarily exited the Ukraine's territory; 
− goods and other items that exit the borders of the customs territory of Ukraine again and 
have been originated in this territory, provi ded customs duties were already paid on these 
goods when they exited the customs territory for the first time and temporarily entered this territory; 
− goods (except for excise goods) imported by Uk raine's nation-wide and international 
associations of citizens who have suffered in  the result of the Chornobyl catastrophe, if 
their statute activities envisage provision of social and medical aids to the victims of the 
Chornobyl catastrophe, enterprises and organizations created by above associations provided that number of such victims is not less than 75% of the total number of members affiliated to the associations who work at su ch enterprises. The list of Ukraine's nation-
wide and international organizations unitin g citizens suffered in the result of the 
Chornobyl catastrophe, their enterprises and organizations, list of their imported goods 
and marginal volumes of such goods allowe d to enter Ukraine are approved by the 
Cabinet of Ministers of Ukraine; 
− during the period 1 January 2000 – 1 January 2005 materials, equipment and component 
parts (hereinafter - goods), entered the custom s territory of Ukraine, utilized in ship 
building by the enterprises of shipbuilding industry stipulated in accordance with the 
Article 1 of the Law of Ukraine "On Measur es on State Support of Ship-Building Industry 
of Ukraine", provided such goods are not produced by enterprises on the Ukraine's WT/ACC/UKR/118 
Page 138  
 
 territory or, if produced, do not meet certifi cated requirements of international classifying 
associations or requirements of the cust omers, who order ships, provided these 
requirements are stipulated by the contract conditions.  The Cabinet of Ministers of Ukraine pursuant to contracts concluded by  such enterprises approves annually the list 
and volumes of such goods (except excise goods).  Should such requirements relating to 
targeted use of the above goods be violated , the taxpayer shall pay import duty according 
to the procedure established by legislation; 
− documents and editions, sent within the frame work of the international exchange to 
educational, scientific or cultural institutions , including to libraries.  The list of these 
institutions shall be approved by the Cabinet of Ministers of Ukraine; 
− goods entered the customs territory of Ukra ine according to the Law of Ukraine "On 
Special Regime of Investment and Inn ovation Activity of Technological Parks"; 
− goods and other material values, including any items, property, produce, equipment, 
outfit, transportation means and other things of property character entered the customs territory of Ukraine in order to fulfil an  agreement on produce distribution, as well as 
produce exited Ukraine by the investor accord ing to the Law of Ukraine "On Production-
Sharing Agreements" and produce distribution agreements; 
− goods (except for excise goods) entered for the purpose of producing ammunitions, their 
elements and special chemical products.  The Cabinet of Ministers of Ukraine determines 
volumes of goods allowed to enter; and 
− for the period from 1 January 2001, until 1 January 2006 entered the customs territory of 
Ukraine materials, outfit, and component pa rts (hereinafter - goods), except for excise 
goods, used to produce armoured combat vehicles and component parts thereto by enterprises of the "Bronetechnika Ukrayiny " concern if these goods are not produced on 
the territory of Ukraine, or the goods produ ced do not meet requirements of customers 
ordering armoured combat vehicles, determined  by contracts' conditions.  List of these 
goods and their volumes are annually determined by the Cabinet of Ministers of Ukraine 
pursuant to contracts concluded by these ente rprises.  Should the requirements relating to 
use of the above funds be violated, the taxpayer shall pay import duty according to procedure and in amount specified by the law; and 
− for the period from 1 January 2004, until 1 January 2009, goods, which are not produced 
in Ukraine and are imported to the customs territory of Ukraine for use in publishing 
activity and activity on manufacturing books in Ukraine, and have the following codes, according to the Ukrainian Classification of Commodity for Foreign Economic Activity 
(UCCFEA): 
Code of Goods Description of Goods 
3211 00 00 Prepared Driers 
3212 90 31 00 
3212 90 39 00 Pigments (including metallic powders and flakes) di spersed in non-aqueous media, in liquid or paste 
form, or thick mass, the kinds, used for production of printing inks (including enamels); except for 
pearl essence and those based on aluminium powder  
3215 11 00 00 Black printing ink 
3215 19 00 00 Printing ink, except black 
3505 10 50 00 3505 10 90 00 Modified starch, used in paper industry 
3701 30 00 00 Only plates (aluminium) with a sensitized ( photo-sensitive) layer and photopolymer plates, suitable 
for production of printing plates in polygraphy, with any side exceeding 255 mm; plates (magnesium) 
with a sensitized (photo-sensitive) layer for produc tion of embossing dyes in polygraphy, with any 
side exceeding 255 mm; flat films (sheet films) fo r production of finals in polygraphy, with any side 
exceeding 255 mm  
3702 42 00 00 Photographic film in rolls for production of fi nals in polygraphy of a width exceeding 610 mm and of 
a length exceeding 200 m 
3702 43 00 10 Photographic film in rolls for production of fi nals in polygraphy of a width exceeding 610 mm and of 
a length not exceeding 200 m  WT/ACC/UKR/118 
 Page 139 
 
 
 Code of Goods Description of Goods 
3702 44 00 90 Photographic film in rolls for production of fi nals in polygraphy of a width exceeding 105 mm but not 
exceeding 610 mm and of a length exceeding 200 m 
3907 50 00 00 Alkyd resins  
4008 21 90 00 Offset rubber plates from non-cellular rubber except for floor covering and floor-mats 
4703 21 00 00 Chemical wood pulp, soda or sulfate, ot her than dissolving grades, unbleached, coniferous 
4703 29 00 00 Chemical wood pulp, soda or sulfate, other than dissolving grades, semi-bleached or bleached, non-
coniferous 
4704 21 00 00 Chemical wood pulp, sulfite, other than disso lving grades, semi-bleached or bleached, coniferous 
4707 90 10 00 Unsorted waste and scrap paper or paperboard 
4707 90 90 00 Sorted waste and scrap paper or paperboard 
5901 10 00 00 Only fabrics for the outer covers of books 
8439 10 00 00 
8439 20 00 00 
8439 30 00 00 Machinery for making pulp of fibrous cellulosic ma terial or for making or finishing paper or 
paperboard 
8440 10 00 00 Bookbinding machinery, including book-sewing machines 
8441 10 00 00 Other machinery for making up paper pulp, pa per or paperboard, including cutting machines of all 
kinds 
8443 11 00 00 8443 19 10 00 
8443 19 31 00 
8443 19 35 00 
8443 19 39 00 
8443 19 90 00 
8443 60 00 00 
8443 90 10 00 
8443 90 80 00 Offset printing machinery and machinery and com ponents thereto, other than those of heading 8443 
90 05 00 
 
− In case of violating requirements related to the purpose use of the above-mentioned 
goods, the taxpayer shall pay import duty according to the procedure set forth by the law. 
− for the period from 1 January 2002, until 1 Ja nuary 2007, materials, component parts and 
equipment (hereinafter - goods) entering the cu stoms territory of Ukraine to be used for 
the needs of aircraft building and designing or  in order to render services to enterprises, 
determined by the Article 3 of the Law of Ukraine "On State Support of the Aircraft 
Construction Industry of Ukraine", if such goods are not manufactured by enterprises 
located in Ukraine, or the goods manufactured  therein fail to comply with international 
classification requirements or requirements of the customers ordering the goods (services) stipulated by the contract conditions.  The list and volumes of such goods (except 
excisable) is approved annually by the Cabi net of Ministers of Ukraine in accordance 
with contracts concluded by these enterprises.  Should the requirements relating to the 
targeted use of the above goods be violat ed, the taxpayer shall pay import duty in 
accordance with the procedure and am ounts stipulated by the Law; 
− archival documents acquired in order to contribute to the National Archival Fund; 
− equipment, outfit, property and materials that are entered/exited by intelligent bodies of 
Ukraine to/from the customs territory of Uk raine, which is designated for own use by 
these bodies; 
− materials, equipment and components (excep t for excisable) brought in by national 
enterprises for processing, gathering on the cu stoms territory of Ukraine for further 
bringing them outside Ukraine for the purpose of implementing investment projects in Turkmenistan pursuant to the Joint Order of the President of Ukraine L.Kuchma and the 
President of Turkmenistan S.Niyazov "On Construction and Financing of Investment 
Projects of National Importance in Turkmenistan" signed on 4 October 2000 if such goods are not produced in Ukraine or do not meet requirements of customers determined 
in contracts (agreements). The Cabinet of Ministers of Ukraine approves the list and 
volumes of such goods in keeping with contracts (agreements) concluded by these enterprises in order to construct investment objects in Turkmenistan. Should requirements WT/ACC/UKR/118 
Page 140  
 
 relating to targeted use of the above goods be violated taxpayer shall pay import duty and 
fine in keeping with the procedure and in amounts established by this Law; 
− necessary for implementation of priority innovation projects, after the Cabinet of 
Ministers of Ukraine passed resolutions on their special importance, raw materials, 
equipment, machinery, component parts and other goods (except for excisable), which are 
imported to Ukraine's customs territory acco rding to the Law of Ukraine "On Innovation 
Activity" (has been suspended for 2004 – acco rding to the Law of Ukraine No. 1344-IV 
of 27 November 2003) 
− for the period from 1 January 2004, until 31 December 2008, materials, component parts 
and equipment (hereinafter referred to as "the goods") according to codes of the 
Ukrainian Classification of Commodities for Foreign Economic Activity 2523 90 90 00, 3824 90 95 00, 3909 10 00 00, 8207 19 90 00, 8414 80 29 00, 8419 50 90 00, 8419 89 98 
00, 8428 20 99 00, 8428 31 00 00, 8430 49 00 00, 8501 52 99 00, 8502 20 99 00, 8705 20 
00 00 and 9027 10 10 90, used for improving safety of works in coal mines, for preventing methane explosions, as well as for decreasing firedamp methane outbursts into 
the environment according to th e list established by the Cabinet of Ministers of Ukraine, 
if such goods are not produced by enterpri ses on the territory of Ukraine. In case of 
violating requirements related to purpose u se of the above-mentioned goods, the taxpayer 
shall pay import duty according to the proce dure and in the amounts determined by the 
law; and 
− pharmaceutical products, compounds used fo r production thereof, which are not 
manufactured in Ukraine and are classified according to the groups 28, 29, 30 of the 
Ukrainian Classification of Commodities for Foreign Economic Activity, the list of which 
shall be approved by the Cabinet of Ministers of Ukraine. 
2.  Reductions in the Level of Levied Customs Duty
 
Duty rates may be reduced when the following goods and other items enter/exit the customs 
territory of Ukraine: 
− repaired and previously entered the customs territory of Ukraine or exited the border of 
that territory; 
− damaged prior to their passage across the cu stoms border of Ukraine but suitable for use 
as goods or materials; 
− in other instances defined by the Cabinet of Ministers of Ukraine. 
3.  Customs Duty Levied When Crossi ng the Borders of Special Customs Zones  
Duty-free entry and exit or privileged levy ing of customs duty is permitted on goods: 
− that enter the special customs zones on the te rritory of Ukraine for final consumption in 
those zones; 
− that exit the special customs zones for c onsumption beyond the customs territory of 
Ukraine and originate in those zones; and 
− that exit special customs zones into the custom s territory of Ukraine and originate in those 
zones. 
The amount of the privileges stipulated by this Article and the procedure for granting them is 
established by the Verkhovna Rada of Ukraine in  accordance with laws of Ukraine on special 
customs zones by way of the adoption of a separate law for each such zone.  WT/ACC/UKR/118 
 Page 141 
 
 
 During the period of functioning of the special  economic zone "Yavor iv" import and export 
duties shall be levied taking into consideration peculiarities established by the Law of Ukraine 
"On the Special Economic Zone "Yavoriv". 
During the period of functioning of special economi c zone of tourist-recr eational type "Health 
Resort System of Truskavets" import duty sha ll be levied taking into account peculiarities 
specified by the Law of Ukraine "On Special Ec onomic Zone of Tourist - Recreational Type 
"Health Resort System of Truskavets". 
During functioning of the special economic zone "Slavutych" import duty is levied taking into 
consideration peculiarities set forth by the Law of Ukraine "On the Special Economic Zone "Slavutych". 
During the period when the special regime of investment activities within priority 
development territories in Luhansk oblast is e ffective, the import duty shall be levied taking 
into account peculiarities set forth by the Law of  Ukraine "On Special Regime of Investment 
Activity on the Priority Development Territories in Luhansk Oblast". 
During the period of functioning of special ec onomic zones "Azov" and "Donetsk" and while 
the special regime of investment activity is in effect within the priority development 
territories in Donetsk oblast, the import and export duties shall be levied taking into 
consideration peculiarities specified by the La w of Ukraine "On Special Economic Zones and 
a Special Regime for Investment Activities in Donetsk Oblast". 
During the period when the special regime of i nvestment activities is in effect in priority 
development territories in Zhitomyr oblast the import duty is levied taking into account 
peculiarities stipulated by the Law of Ukra ine "On the Special Regime of Investment 
Activities in the Priority Development Territories in Zhytomyr Oblast". 
During the effective period of the special econom ic zone "Reni" the import and export duties 
shall be levied taking into consideration peculia rities set forth by the Law of Ukraine "On the 
Special Economic Zone "Reni". 
During the effective period of the special (free)  economic zone "Porto-Franko" created within 
the territory of the Odesa Sea Trade Port, the im port and export duties shall be levied taking 
into account peculiarities specified by the Law of Ukraine "On the Special (Free) Economic 
Zone "Porto-Franko" in the territory of Odesa Trade Seaport". 
During the period the special regime  of investment activities is in effect on the territory of the 
city of Kharkiv the import duty shall be levied taking into consideration peculiarities set forth 
by the Law of Ukraine "On the Special Regime of Investment Activity at the Territory of 
Kharkiv". 
During the period the special regime of invest ment activity is in force on the priority 
development territories and during functioning of  the special economic zone "Port Crimea" in 
the Autonomous Republic of Crime, the import a nd export duties shall be levied taking into 
consideration peculiarities specified by the Law of Ukraine "On Special Regime of 
Investment Activities in Priority Development Territories and on the Special Economic Zone 
"Port Crimea" in the Autonomous Republic of Crimea". 
During the effective period of the special economic zone "Mykolayiv" the import and export 
duties shall be levied taking into account peculia rities set forth by the Law of Ukraine "On the 
Special Economic Zone "Mykolayiv". WT/ACC/UKR/118 
Page 142  
 
 During the effective period of the special regi me of investment activity in the priority 
development territory in Volyn oblast the import duty shall be levied ta king into consideration 
peculiarities specified by the Law of Ukraine "O n the Special Regime for Investment Activity 
in the Priority Development Territory in Volyn Oblast". 
4.  Tariff Preferences
 
Establishment of preferences with regard to rates of the Unified Customs Tariff of Ukraine is 
permitted in the form of exemption from the customs duty, reduction of the rates of the customs duty, or establishment of quotas for pref erential entry with regard to goods and other 
items: 
− originated in states which create together with Ukraine a customs union or a free trade 
zone; and 
− that circulate in border trade.  WT/ACC/UKR/118 
 Page 143 
 
 
 ANNEX 2 
Amount of Fee for the Customs Clearance of Goods and Vehicles Performed  
out of the Location of Customs Bodies or Beyond the Hours of Operation Set for  
Customs Bodies Approved by Resolution of Cabinet of Ministers of Ukraine   
of 18 January 2003, No. 93  
 
- The fee for the customs clearance of goods and vehicles performed out of the location of 
customs bodies or beyond the hours of operation set for customs bodies (hereinafter "fee") shall be levied on persons im porting goods and vehicles across the customs border of Ukraine 
on the basis of their written appeal requesting such manner of customs clearance to be 
applied; 
- The fee shall be charged in national currency in the amount stipulated in paragraph 1 of this 
Resolution, at the official rate of exchange fixed by the National Bank as of the date of 
payment of such fee; 
- The proceeds from the charging of fee shall be received by the State Budget as revenue; and 
- The procedure for the adoption of decision rega rding the performance of customs clearance of 
goods and vehicles out of the location of customs bodies or beyond the hours of operation set for customs bodies, for the assessment of the amount  of fee, and for the payment thereof shall 
be established by the State Customs Service. 
Came into force on 1 January 2005. 
Description of Operation Per One Hour of Work of a Customs Body Official 
during the Customs Clearance of One Consignment of 
Goods or One Vehicle, US$ 
Customs clearance of goods and vehicles performed out of the location of customs bodies:   
During working time 20  
During overtime, night time and on weekends  40  1.  
On holidays and nonworking days  50  
Customs clearance of goods and vehicles performed at the 
location of customs bodies beyond the hours of operation 
set for customs bodies:  
During overtime, night time and on weekends  40  2.  
On holidays and nonworking days  50  WT/ACC/UKR/118 
Page 144  
 
 ANNEX 3 
Port Fees
 
The Cabinet Of Ministers Of Ukraine Resolution Dated 12 October 2000 No. 1544 Kyiv  
On Port Fees As amended by Resolutions of the Cabinet of Ministers of Ukraine  
dated 29 November 2001 No. 1584, dated 29 Marc h 2002 No.391, Order of the Ministry of 
Transportation of Ukraine dated 10 September 2002 No.642  
Pursuant to Article 84 of the Code  of Merchant Shipping of Ukraine, the Cabinet of Ministers of 
Ukraine Resolved: 
1. To approve the Regulation on Port Fees (attached); 
2. To determine that amounts of port fees est ablished by the Regulation, which is approved 
pursuant to Section 1 of this Resolution, are highest possible, and a procedure for applying 
discounts to them shall be determined  by the Ministry of Transportation; 
2.1 To determine that the procedure for taking stock of and using revenues from port fees, other 
than the administrative charge, shall be approved by the Ministry of Transportation subject to 
consent by the ministry of Economy and on Issues of European Integration as well as the 
Ministry of Finance. (the Resolution was supplemented with clause 2.1 pursuant to 
Resolution of the Cabinet of Ministers of Ukraine dated 3 March 2002 No.391); 
3. To recognize the Resolutions of the Cabinet of Ministers of Ukraine specified in the attached 
list as such that have lost effect; and 
4. This resolution shall take effect on 1 January 2001. 
Regulation On Port Fees  
(Pursuant to order of the Ministry of Transporta tion, dated 10 September 2002, No. 642, there has 
been introduced a 50 per cent discount for all types of port fees established by this Regulation up to 
the end of 2002 for vessels that call at the Pivdenniy oil terminal, which is located at the Yuzhniy sea 
commercial port, in order to load technological oil in to the pipeline.  This discount shall not apply to 
vessels that call at the Pivdenniy oil termin al in order to take a load of oil). 
(Pursuant to order of the Ministry of Transporta tion of Ukraine, dated 10 April 2004, No. 283, there 
has been introduced a 50 per cent discount for sh ip, canal, lighthouse, and sanitary port fees 
established by this Regulation for vessels that call in order to take a load of oil at the Pivdenniy oil 
terminal, which is located at the Yuzhniy sea commercial port). 
General Part  
1. Port fees (ship, canal, lighthouse, berth, anc hor, administrative and sanitary) shall be collected 
at sea port from vessels that belong to specified groups and floating vehicles that navigate 
under the State Flag of Ukraine and a foreign flag: 
freight vessels that call at ports for loading operations and floating vehicles A group  
passenger vessels, including high-speed hydrofoils a nd ferries that call at ports to perform cargo-and-
passenger operations, icebreakers that are neither registered in the port nor leased by it B group 
lighters, tugboats, pushing tugboat, pushers, barges (self-propelled and dumb), river self-propelled 
vessels, including mixed river-sea- going vessels owned by shipping comp anies, which are parties to the 
Bratislava Treaty, that call at ports on the Danube rive r, as well as river self-p ropelled vessels that call 
at other ports for further reloading of cargo on sea vessels and vice versa  C group  
dumb vessels (except for barges) D group 
vessels that call at ports due to compelling reasons , for provisions, quarantine needs as well as vessels 
that are bound to Ukrainian shipyards for repairs  E group 
official and military vessels E group  WT/ACC/UKR/118 
 Page 145 
 
 
 training, training and practice vessels when perfo rming voyages in accordance with the curricula of 
educational institutions with at le ast 50 cadets aboard, school vessels  E group 
scientific, research and high-speed hydrofoils that perform regular sc heduled coasting passenger 
voyages (except for pleasure and cruise voyages) E group 
other vessels (vessels of a shipya rd, emergency and rescue vessels, unde rwater and technical, technical, 
hospital, hydrographic vessels, local harbor vessels, icebreakers that are owned and leased by the port, 
sports vessels, private yachts, sailing vessels, vessels  that are undergoing sea trials, and fishing boats 
that call at ports without performing any loading operations) F group 
Notes : 
- The term "compelling reasons" shall be understood as a call at the port due to a threat to the safety of 
the voyage, if continued, life or health of crew members and passengers. 
- Group C (tugboats and barges), E and F vessels that perform commercial cargo voyages shall belong to 
the A group. 
- Group E and F vessels that perform commercial cargo and passenger voyages shall belong to the B 
group 
- The procedure for calculation and collection of feeds extends onto subjects of entrepreneurial activities 
of all types of ownership that perform works and provide services at sea ports at berths of shipyards in 
Ukraine irrespective of subordination of these ports (docks). 
- Vessels that call at the Dnipro-Buzskiy sea port shall pay fees set out by this Regulation to the sea state 
port administration in accordance with the fee calculation conditions. 
 
2. Port fees shall be paid prior to the departur e of a vessel from the port and in case of transit 
through the Kerch-Yenikalskiy canal ("KYC") and the Prorva canal – by means of prepayment or directly at the entrance to the Kerch-Yenikalskiy canal and the Prorva canal, unless stipulated otherwise. 
3. Port fees shall be charged on the conditional to nnage of a vessel, which is calculated in cubic 
meters and is equal to the aggregate of three dimensions (the length of a vessel, width of a 
vessel and height of a vessel's board) specified in a tonnage certificate (main dimensions) or a 
substitute document. 
For sea vessels that carry freight on the upper d eck or have two or more decks, except for 
twin-deck vessels, the height of a board used to calculate the tonnage of a vessel shall be at 
least half the width of a vessel. 
For B group vessels that have two or more decks the height of a board used to calculate the 
tonnage of a vessel shall be half the width of a vessel. 
The conditional tonnage of barge and towi ng warehouses, caravans and other floating 
structures for purposes of charging all types of f ees, except for the sanitary fee, shall be equal 
to the total of tonnages of its separate elements. 
To calculate all types of fees, the conditional tonnage of RO-RO, RO-FLOW, ОBО, LO-RO 
vessels, container vessels, cattle-carriers, lighter-a board ships, and car carriers is used with a 
0.7 quotient provided that vessels are used for their designated purposes.  The type of a vessel and its designated purpose shall be determ ined in accordance with its documents. 
In case fees are charged on a twenty-four-hour basis,  time is rounded to 0.5 of this period.  
Whereby time less than 0.5 of this period shall be  rounded to 0.5 of this period, and 0.5 of this 
period and more – to a full twenty-four-hour period. 
Item 3 is supplemented with pa ragraph six pursuant to Resolution of the Cabinet of Ministers 
of Ukraine, dated 29 March 2002, No. 391. WT/ACC/UKR/118 
Page 146  
 
 4. Lighter-aboard ships that perform cargo operati ons with lighters on the external or internal 
roadstead shall be charged port fees on the basis of  tonnage of lighters that are delivered by a 
lighter-aboard ship when entering the port and taken back when leaving it. 
5. Group A cargo vessels that operate on overseas routes, which are established in the manner 
prescribed, shall be granted a 20 per cent discount on the ship fee. 
6. Main features of overseas routes shall be as follows: 
− establishment of mandatory and optional foreign and Ukrainian ports of call; 
− assignment of types of vessels to operate on the route; 
− establishment of periodicity for assigned vessels to call at Ukrainian ports; and 
− registration of a route by the State Department of Sea and River Transportation upon the 
submission of the port (sea port) administration. 
7. The port may give a 50 per cent discount off all types of port fees to vessels that call at the 
Yuzhniy port for loading and unloading general and bulked cargo. 
The following discounts shall apply at the Yalta port: 
50% off the ship fee for Group A vessels; 
20% off all types of port fees for cruise passenger vessels of overseas routes that belong to the B 
Group (except for those that are performing mixed cargo-passenger voyages). 
 
In the port of Odessa a 10% discount shall apply to all types of port fees for cruise passenger 
vessels of overseas routes that belong to the B Group (except for those that are performing 
mixed cargo-and-passenger voyages). 
8. If a vessel is eligible for discounts on several port fees, there shall apply the discount on the 
highest basic rate only. 
9. Nationality of, and respectively, the status gr anted to, a vessel for purposes of collection of 
port fees shall be determined on the basis of a flag flown by the vessel irrespective of its owner and user. 
10. Port fees shall be paid in accordance with th e Decree of the Cabinet of Ministers of Ukraine 
"On the System of Currency Regulation and Currency Control", dated 19 February 1993, 
No. 15. 
11. Amounts of port fees collected in the Ukrainian currency shall be subject to a value-added tax 
as determined by law. Whereby, if a port pr ovides services to coasting vessels, an amount of 
fees determined pursuant to this Regulation shall be increased by an amount of the value-
added tax and in other cases an amount of the value-added tax due to the budget shall be 
calculated on the basis of an amount of fees ch arged and paid to the port without such an 
increase.  WT/ACC/UKR/118 
 Page 147 
 
 
 Ship Fee  
12. Group A, B and D vessels shall be charged a ship fee on every call at, and departure from, a 
port per cubic meter of the vessel's tonnage at the following rates: 
(in US$) 
Port For foreign-going vessels For coasting vessels 
Bilgorod-Dnistrovskiy  0.095  0.0008  
Berdyansk  0.084  0.0008  
Dnipro-Buzskiy 0.089  0.0042  
Eupatoria  0.100  0.0046  
Izmail  0.087  0.0024  
Illichyvsk  0.110  0.0060  
Buchta Kamyshova  0.100  0.0038  
Kerch  0.108  0.0042  
Mariupol  0.090  0.0024  
Mizhvodne  0.093  0.0032  
Mykolayv  0.089  0.0054  
Odessa  0.110  0.0054  
Oktyabrskiy  0.100  0.0042  
Ochakiv  0.089  0.0051  
Reni  0.083  0.0020  
Sevastopol  0.100  0.0042  
Skadovsk  0.088  0.0054  
Ust-Dunaysk  0.092  0.0078  
Feodosia  0.077  0.0042  
Kherson  0.085  0.0028  
Chornomorsk  0.084  0.0032  
Yuzhniy  0.230  0.0144  
Yalta  0.135  0.0090  
Berth of CJSC "Mykolayvskiy Potasium 
Terminal" 0.089  0.0054  
Other ports (berths)  0.093  0.0043  
Note : 
- Vessels that call at ports to undergo procedures pertaining to the passage though the state border of 
Ukraine without loading operations shall be exempt from the ship fee. 
- Item 12 as amended pursuant to Resolutions of the Cabinet of Ministers of Ukraine, dated 
29 November 2001, No. 1584, dated 17 July 2003, No. 1069. 
 
13. Group E and F vessels shall be exempt from the ship fee. 
For Group A, B and D foreign-going vessels with a conditional tonnage of up to 10,000 cubic 
meters, the rate of ship fee shall be applied with a 0.8 coefficient. 
14. Rate of ship fee for foreign-going vessels shall be applied irrespective of a flag flown by the 
vessel. 
Ship fee rates for coasting vessels shall apply only to vessels that perform coasting voyages 
under the State Flag of Ukraine. 
If the maximum draft of large-capacity vessels sp ecified in the tonnage certificate exceeds the 
permissible depth determined for a specific port that leads to an incomplete loading of a 
vessel, the port may, when calculating an amount of  the ship fee, reduce the height of a board 
by the amount of the unused draft. WT/ACC/UKR/118 
Page 148  
 
 15. In the event that A Group vessels consequent ly call at several Ukrainian ports in a single 
voyage, a ship fee shall be charged: 
− if two ports are called – with a 50 per cent di scount off the basic rate in every port; and 
− if more than two ports are called – with a 50 per cent discount at the first port and 
75 per cent of the basic rate in every subsequent port. 
16. Group B vessels shall be charged a ship fee in every port when entering and leaving a port 
with a 50 per cent off the rate only during the first and second voyages that are performed by 
a vessel during a calendar year.  During the next calls at a port in the same calendar year the ship fee shall not be charged on these vessels. 
17. Group B vessels shall be charged the ship fee for every call at and departure from the port at 
the following rates: 
In overseas voyage: 
− US$ 40.5 - for a vessel, tugboat; and 
− US$ 20.25 – for a unit (barge, lighter). 
In coasting voyage: 
− US$10 - for a vessel, tugboat; and 
− US$5 – for a unit (barge, lighter). 
Canal Fee
 
18. A canal fee shall be charged for every one -way passage through the canal and every passage 
by a vessel in a one-way transit per 1 cubic me ter of the vessel's tonnage at the following 
rates: 
(in US dollars) 
Port For foreign-going 
vessels For coasting vessels 
Bilgorod-Dnistrovskiy  0.063 0.0063 
Berdyansk  0.106 0.0106 
Buchta Kamyshova  0.032 0.0032 
Dnipro-Buzskiy  0.027 + 0.189 0.0026 + 0.018010 
Illichyvsk  0.020 0.0020 
Kerch (including the KYC):    
sea commercial port  0.16 0.0170 
sea fishing port and all other Kerch-based enterprises that 
perform loading-unloading opera tions and service vessels  0.14411 + 0.01612 0.015313 + 0.001714 
                                                      
9 To be paid directly to the State Enterprise "Delta-Lotsman". 
10 The rate designated for the Berth of the "Okean" Plant shall apply only to vessels that pass through 
the Buzsko-Dniprovsko-estuary canal for performing loading operations at berths of this plant. 
11 To be paid to the sea commercial port "Kerch". 
12 To be paid to other Kerch-based enterprises that perform loading-unloading operations and service 
vessels. 
13 For passage through the Buzsko-Dniprovsko-estuar y canal and the Kherson sea canal without calling 
at sea ports (berths) a canal fee shall be paid by vessels  at the specified rates to th e respective state enterprise 
"Delta-Lotsman" and sea commercial ports of Mykolayv and Kherson in amounts set for the ports of Mykolayv (maritime) and Kherson (maritime). 
  WT/ACC/UKR/118 
 Page 149 
 
 
 Port For foreign-going 
vessels For coasting vessels 
the KYC (transit)  0.053 0.0062 
the KYC for vessels in transit that call at (departure from) the 
"Kavkaz" port    
buoy No. 1-41  0.044 - 
buoy No. 41-51  0.013 - 
Mariupol  0.106 0.0106 
Mykolayv (maritime)  0.027 + 0.22710 0.0026 + 0.022610 
Berth of the "Okean" Plant  0.22110 0.022110 
Odessa  0.011 0.0010 
Oktyabrskiy  0.027 + 0.20310 0.0026 + 0.020210 
Ochakiv 0.027 + 0.02710 0.0027 + 0.002710 
Sevastopol  0.032 0.0032 
Skadovsk  0.032 0.0032 
Ust-Dunaysk  0.068 0.0068 
Kherson (maritime)  0.10 + 0.13610 0.010 + 0.013610 
Yuzhniy  0.074 0.0074 
For passage through Prorva canal  0.140 0.0140 
Berth of CJSC "Mykolayvskiy Potasium Terminal" 0.027 + 0.20810 0.0026 + 0.020710 
Notes : 
- For vessels that pass through the acce ss canal to the port of the "Azovs tal" Factory, the canal fee rate 
shall apply with a 0.5 quotient. 
- Item 18 as amended pursuant to Resolution of the Cabinet of Ministers of Ukraine, dated 29 November 
2001, No. 1584. 
 
19. Group B vessels shall be charged the canal f ee in every port when entering and leaving the 
port with a 50 per cent off the rate only in the first and second voyages that are performed by a vessel in a calendar year.  During the next ca lls in the same calendar year these vessels shall 
be exempt from the canal fee. 
20. Group C, E, F vessels as well as Group D vessels (except for barges) that pass through the 
Prorva canal shall be exempt from the canal fee. 
Lighthouse fee
 
21. Group A and B vessels shall be charged a lighthouse fee for every call at the port (factory) or 
for every passage in transit, except for the passage through the Kerch-Yenikalskiy canal in 
transit at the following rates: 
− US$ 0.029 per cubic meter of a vessel's  tonnage – on foreign-going vessels; and 
− US$ 0.0029 per cubic meter of a vessel's tonnage – on coasting vessels. 
The lighthouse fee shall be paid fully to the State Institution "Derzhgydrographia". Item 21 supplemented with a paragraph pursuant to  the resolution of the Cabinet of Ministers 
of Ukraine dated 29 March 2002, No. 391.  
22. Group C, D, E, and F vessels shall be exempt from the lighthouse fee. 
                                                                                                                                                                    
 
14 For vessels that, according to the tonnage certificat e with a full load, has a draft of not more than 
4.5 meters, a canal fee rate shall apply with a 0.38 coefficient, except for the port of Bilgorod-Dnistrovsk, the 
Prorva canal, and the access canal to the port of the "Azovstal" Factory WT/ACC/UKR/118 
Page 150  
 
 Berthage
 
23. A berthage shall be collected from vessels that are moored at berth. 24. To Group A, B, and C vessels (tugboats), Group D, E, and F vessels (sports vessels, private 
yachts, sailing vessels and fishing-boats that ca ll at ports without loading operations) the 
following rates shall apply: 
(in US dollars) 
Purpose of anchorage For foreign-going vessels For coasting vessels 
Loading operations that are perfor med with the use of the port's 
labour and means (cubic meter per call of a vessel)  0.022  0.0022  
Other cases as well as for tugboats , sports vessels, private yachts, 
sailing vessels and fishing-boats th at call at ports without loading 
operations (cubic meters pe r twenty-four-hour period)  0.0072  0.00072  
Note : 
- Group F vessels (except for sports vessels, private yachts, sailing vessels and fishing-boats that call at 
ports without loading operations) shall be exempt from the berthage. 
 
25. Group C vessels (except for tugboats) shall be  charged for he berthage every loaded or 
unloaded ton of cargo at the following rates:  
US$0.12 on foreign-going vessels;  
US$0.012 on coasting vessels.  
 
The berthage shall be paid for every operation. In the event that an operation is performed at 
an unequipped shore or "from vessel to vessel , a 50 per cent discount shall apply to the 
berthage rate. 
26. Vessels that are located broadside with resp ect to another vessel, which is moored at the 
berth, or moored at berth foreside or aftsid e shall pay a 50 per cent of the berthage rate. 
27. Group A and B vessels shall be charged the be rthage for demurrage at the cargo (passenger) 
berth for reasons that depend on the vessel or  its owner as of the completion of loading and 
fastening of cargo per cubic meter of the vessel's tonnage at the following rates:  
US$0.0104 per hour on foreign-going vessels;  
US$0.00104 per hour  on coasting vessels.  
 
28. For anchorage or completion of  servicing of a vessel at the captain's (ship-owner's) request. 
The port must provide the vessel with an u noccupied berth or place for anchorage on the 
roadstead. 
Anchor Fee  
29. Group A and B vessels shall be charged an anc hor fee for anchorage on the internal roadstead 
of the sea port for more than 12 hours at the twenty-four-hour rates per cubic meter of the 
vessel's tonnage for time when th e vessel was actually anchored:  
US$0.0027 on foreign-going vessels;  
US$0.00027 on coasting vessels.   WT/ACC/UKR/118 
 Page 151 
 
 
  
30. Group C, D, and F vessels (sports vessels, private yachts, sailing vessels and fishing-boats 
that call at ports without loading operations) sha ll be charged an anchor fee for 30 days of 
anchorage on the internal road stead at the following rates: 
US$18 on foreign-going vessels;  
US$1.8 on coasting vessels;  
 
For every next day of anchorage on the internal  roadstead in addition to the specified term, 
the anchor fee shall be collected fro m every vessel at the following rates: 
US$2  on foreign-going vessels;  
US$1  on coasting vessels.  
 
31. Group E and f vessels (except for sports vess els, private yachts, sailing vessels and fishing-
boats that call at ports without loading opera tions) shall be exempt from the anchorage fee. 
Administrative Fee  
32. Group A, B, C, and D vessels shall be charged an administrative fee every time they call at a 
port at the following rates: 
US$0.014 per cubic meter of the vessel' s tonnage on foreign-going vessels; 
US$0.0014 per cubic meter of the ve ssel's tonnage on coasting vessels. 
 
Vessels that call at sea ports to undergo procedures pertaining to the passage though the state 
border of Ukraine without loading operations sh all be exempt from the administrative fee. 
Group A, B, C, and D vessels that consequently  call at several Ukrainian ports in a single 
voyage to perform loading operations shall pay the administrative fee only at the first port of 
call. 
Discounts on port fees established by ports and ag reed to by ship-owners shall not extend 
onto the administrative fee. 
33. Group E and F vessels shall be exempt from the administrative fee. 34. Funds received by ports as administrative fees shall be used as determined by law. 
Sanitary fee
 
35. The collection of a sanitary fee shall provide for: 
- mandatory acceptance by the port of all kinds of pollutants (except for ballast waters) 
for the duration of anchorage at the port as well as performance with the use of labour 
and at their expense of operations relate d to the acceptance of wastes (delivery and 
cleaning of floating crafts, provision of c ontainers and other receptacles for collection 
of garbage, reloading operations , hosing, unhosing, etc.); and WT/ACC/UKR/118 
Page 152  
 
 - mandatory discharge by a vessel of all ava ilable pollutants to prevent their discharge 
into sea.  The discharge of pollutants shall be  confirmed by an official receipt issued 
by the port. 
36. Group A vessels shall be charged the sanitary f ee per cubic meter of the vessel's tonnage or a 
self-propelled part of the compound floating structure at the following rates: 
(in US$) 
On foreign-going vessels On coasting vessels 
Port anchorage of up to 
10, 24-hour periods anchorage from  
10 to 30, 24-hour 
periods anchorage of up to 
10, 24-hour periods anchorage from  
10 to 30, 24-hour 
periods 
Bilgorod-Dnistrovskiy  0.014  0.023  0.0014  0.0023  
Berdyansk  0.022  0.040  0.0022  0.0040  
Dnipro-Buzskiy  0.010  0.016  0.0010  0.0016  
Illichyvsk  0.014  0.023  0.0014  0.0023  
Mariupol  0.022  0.040  0.0022  0.0040  
Mykolayv (maritime)  0.014  0.023  0.0014  0.0023  
Odessa  0.014  0.023  0.0014  0.0023  
Sevastopol (maritime commercial, fishing)  0.027  0.040  0.0027  0.0049  
Feodosia  0.027  0.038  0.0027  0.0038  
Kherson (maritime)  0.014  0.023  0.0014  0.0023  
Yuzhniy 0.014  0.023  0.0014  0.0023  
Yalta  0.022  0.040  0.0022  0.0040  
Notes : 
- Group B, C, D, E and F shall be exempt from the sanitary fee. 
- The sanitary fee shall not be charged at ports that do not have facilities to store all wastes. 
 
37. Vessels that are equipped with environmenta lly protective equipment for complete utilization 
of all types of vessel's wastes and polluta nts, and have an international certificate on 
prevention of sea pollution with oil, sewage, and certificate of prevention of pollution with 
(environmentally pure) garbage, shall be gran ted a 50 per cent discount off the sanitary fee. 
38. In the event that the sanitary fee is not collected, payments for contamination shall be 
governed by the Ministry of Transportation.  
  WT/ACC/UKR/118
 Page 153ANNEX 4 
Rates of excise taxes on certain motor vehicles, ethyl alcohol, al coholic beverages, tobacco, etc. in Ukraine (as of July 2004)  
 
Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
ALCOHOLIC BEVERAGES - (for imported – temporary for pre-accession period) 
2203 00 Malt beer  UAH 0.23 per litre 
2204 
except 2204 10, 
2204 30, 
2204 21 100, 2204 29 100 Wine of fresh grapes with sugar cont ent not exceeding 0.3g/100cm3 (dry) and 
fortified vintage wine 
 UAH 3 per litre 
 UAH 0.25 per litre 
 
2204 
except 2204 10, 
2204 30, 
2204 21 100, 
2204 29 100 Wine of fresh grapes with sugar content more than 0.3g/100cm3 (dry) (half-dry, 
semisweet) UAH 0.92 per litre 
 
2204 except 2204 10, 
2204 30, 
2204 21 100, 
2204 29 100 Wine of grape, containing added alcohol  and strong wines (fortified), except for 
vintage fortified wine UAH 0.1 per litre of 100% alcohol 
 
2204 10 
2204 21 100 
2204 29 100 Sparkling wine, champagne: 
Sparkling wines containing in the name the word " Сhampagne" 
Aerated wines (excluding sub-item 2204 10) UAH 5 per litre UAH 1.6 per litre 
2204 З0 Only wine must (includi ng wine materials for cognac and champagne) for production 
of cognac spirit and sparkling wines 
 0 
(UAH 1.0 per litre of wine materials when sold to intermediaries and population, 
produced at primary production facilities) 
2205 Vermouth and other wine of fresh grapes  flavoured with pl ants or aromatic 
substances (with Article 2 of  this Law been considered) UAH 5 per litre UAH 2.6 per litre 
 
2206 
 Fermented drinks of fruits and berries (c ider, perry and other) containing added 
alcohol, mixtures of fermented beverage s and mixtures of fermented beverages and 
non-alcoholic beverages (except for fermente d drinks of fruit and berries (cider, 
perry and other) containing no added alcohol. UAH 5 per litre UAH 0.1 per litre of 100% alcohol 
(temporary till 1 January 2006 - UAH 
0.07 per litre of 100%)  
2206 
 Only fermented drinks of fruits and berries  (cider, perry and other) containing no 
added alcohol UAH 1.2 per litre  
 WT/ACC/UKR/118 
Page 154 Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
2207 Non-denaturated ethyl alcohol of an alc oholic strength by volume of not less than 
80% vol; spirits, liqueurs and other spirituous beverages ethyl alcohol and other 
denaturated alcohols UAH 16 per litre of 100% alcohol 
 UAH 16 per litre of 100% alcohol 
UAH 2.0 per litre of 100% alcohol: 
for use by health establishments and 
institutions in therapy processes and 
laboratory research; 
for use in manufacture of explosives, 
perfumes, nitrocellulose, and half-
finished products;for manufacture of 
alcohol-containing ju ices, fruit drinks, 
extracts intended for industrial 
processing; 
for use by manufacturers of pectin, 
alcohol vinegar, me dicines (including 
blood components and preparations made 
on their basis), with the exception of 
medicinal drugs in th e form of balsam; 
for use by primary wine-making 
enterprises in manufacture of grape, fruit, 
and other wine materials and must 
until 1 January 2005 for manufacture of 
products included in the list approved by 
the CMU; 
for use by National agrarian-industrial 
association "Massandra" within the 
quotas, set by the CMU, for production of 
vintage wines 
(Suspended for 2004 by Law of Ukraine 
"On State budget for 2004") 
2208 except 2208 20 Non-denaturated ethyl alcohol of an alc oholic strength by volume of less than 80% 
vol; spirits, liqueurs and other spirituous beve rages, alcoholic semi-products used in 
the manufacture of beverages (with Article 6 of this Law taken into consideration) UAH 16 per litre of 100% alcohol 
 
2208 20 except 2208 20 1200, 
2208 20 2900 – brandy 
only, 
2208 20 8900 – cognac 
spirit only Spirits obtained by distilling grape wine or grape marc  UAH 16 per litre of 100% alcohol 
 
2208 20 1200 Cognac UAH 16 per litre of 100% alcohol UAH 3 per litre of 100% alcohol 
2208 20 2900 Brandy only UAH 16 per litre of 100% alcohol UAH 3 per litre of 100% alcohol 
2208 20 8900 Cognac spirit only UAH 16 per litre of 100% alcohol  
  WT/ACC/UKR/118
 Page 155Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
TOBACCOS 
2401 Unmanufactured tobacco 
Tobacco refuse 0/0%* 
2402 10 00 00  Cigars (cheroots), cigarillos (cig arettes), containing tobacco UAH 20 per 100/5% 
2402 20 90 10  Cigarettes without filters from tobacco  UAH 5 per 1,000/5% 
2402 20 90 20  Cigaretter with filter from tobacco UAH 11,5 per 1,000/5% 
2403 except 
2403 99 10 00, 
2403 10 Other manufactured tobacco and manufactured tobacco substitutes; "homogenised" or 
"reconstituted" tobacco; tobacco extracts and essences: 0/0% 
2403 10  Smoking tobacco (whether or not containing toba cco substitutes in any proportion) UAH 10 per kg/5% 
2403 99 10 00 Chewing tobacco 
Snuff UAH 10 per kg/5% 
PETROLEUM 
 Light oils and preparations:  
2710 00 110 For undergoing a specific process € 12 per 1,000 kg 
2710 00 150 For undergoing chemical transformation by  a process other than those specified in 
respect of subheading 2710 00 11 € 12 per 1,000 kg 
 Special spirits:  
2710 00 210 White spirit € 12 per 1,000 kg 
2710 00 250 other € 20 per 1,000 kg 
 Motor spirit:  
2710 00 310  Aviation spirit € 20 per 1,000 kg 
2710 00 370  Jet fuel € 20 per 1,000 kg 
2710 00 390  Other light fractions  € 20 per 1,000 kg 
 Medium oils:  
2710 00 410  For undergoing a specific process € 20 per 1,000 kg 
2710 00 450  For undergoing chemical transformation by a process other than those specified in 
respect of subheading 2710 00 410 € 12 per 1,000 kg 
 For other purposes:  
 Kerosene:  
2710 00 510 Jet fuel € 12 per 1,000 kg 
2710 00 590 
2710 00 550 Other € 20 per 1,000 kg 
2710 00 330 
2710 00 350 Only motor spirit (DSTU 320.00149943.015-2000)  containing not less than 5% of 
high-octane oxigen-containing agents (T UU 30183376.001) or ethyl-tret-butyl ether 
(ЕТБЕ ) А-76Ек, А-80Ек. А-92Ек, АІ-93Ек, А-95Ек, А-98Ек € 30 per 1,000 kg 
(€ 60 per 1,000 kg 
from 1 January 2004 until 1 January 2005) 
2710 00 330 2710 00 350 Motor spirit: А-72, А-76, А-80; А-90, А-91, А-92, АІ-93, А-95, А-96, А-98 and 
other type motor spirit € 60 per 1,000 kg 
 
2710 00 350 Motor spirit, containing tetraethyl lead  € 90 per 1,000 kg 
                                                      
* fixed amounts for the unit of products sold / per-cent of turnover у of products sold 
  
 WT/ACC/UKR/118 
Page 156 Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
2710 00 610 
2710 00 650 
2710 00 690 Heavy oils (diesel fuel) € 30 per 1,000 kg 
3811 19 00 00  High octane oxygen-containing additives to gasoline (TUU 30183376.001 - 2000)  0 
MOTOR VEHICLES 
(for domestic manufacturers on condition of annual output of 1,000 automobiles or 1,000 motorcycles until 1 January 2007) 
 Vehicles, with spark-igni tion internal combustion reciprocating piston engine:   
87.0321 100 Of a cylinders capacity not exceed ing 1,000 cm3, new € 0.2 per 1 cc 0 
87.0321 90 Of a cylinders capacity not exceeding 1,000 cm3, used:   
87.0321 901 Up to 5 years inclusive  € 0.4 per 1 cc 0 
87.0321 903 From 1 to 5 years € 0.6 per 1 cc 0 
87.0322 110 
87.0322 190 Of a cylinders capacity exceeding 1,000 cm3 but not exceeding 1,500 cm3, new: 
motor caravans; other € 0.2 per 1 cc 0 
87.0322 90 Of a cylinders capacity exceeding 1,000  cm3 but not exceedi ng 1,500 cm3, used;  
87.0322 901 Up to 5 years inclusive  € 0.4 per 1 cc 0 
87.0322 903 Over 5 years € 0.6 per 1 cc 0 
87.0323 110 
87.0323 190 Of a cylinders capacity exceeding 1,500 cm3 but not exceeding 2,200 cm3 , new: 
motor caravans; other  € 0.3 per 1 cc 0 
87.0323 110 
87.0323 190 Of a cylinders capacity exceeding 2,200 cm3 but not exceeding 3,000 cm3, new: 
motor caravans; other  € 0.6 per 1 cc 0 
87.0323 90 Of a cylinders capacity exceeding 1,500  cm3 but not exceedi ng 2,200 cm3, used;  
87.0323 901 Up to 5 years inclusive € 0.6 per 1 cc 0 
87.0323 903 Over 5 years € 0.9 per 1 cc 0 
87.0323 90 Of a cylinders capacity exceeding 2,200  cm3 but not exceedi ng 3,000 cm3, used:  
87.0323 901 Up to 5 years inclusive € 1.2 per 1 cc 0 
87.0323 903 Over 5 years € 1.8 per 1 cc 0 
87.0324 100 Of a cylinders capacity exceeding 3,300 cm3, new € 1.0 per 1 cc 0 
87.0324 90 Of a cylinders capacity exceeding 3,000 cm3, used  
87.0324 901 Up to 5 years inclusive € 2.0 per 1 cc 0 
87.0324 903 Over 5 years € 3.0 per 1 cc 0 
 Other vehicles, with internal  combustion engine (diesel or  semi-diesel, that work on 
fuel with low-octane number)  0 
87.0331 100 Of a cylinders capacity not exceed ing 1,500 cm3, new € 0.2 per 1 cc 0 
87.0331 90 Of a cylinders capacity not exceeding 1,500 cm3, used:  
87.0331 901 Up to 5 years inclusive € 0.4 per 1 cc 0 
87.0331 903 Over 5 years € 0.6 per 1 cc 0 
87.0332 110 
87.03 32 190 Of a cylinders capacity exceeding 1,500 cm3 but not exceeding 2,500 cm3, new: 
motor caravans; other € 0.3 per 1 cc 0 
87.03 32 90 Of a cylinders capacity exceeding 1, 500 cm3 but not exceedi ng 2,500 cm3, used  
87.0332 901 Up to 5 years inclusive € 0.6 per 1 cc 0 
87.03 32 903 Over 5 years € 0.9 per 1 cc 0 
87.0333 110 
87.0333 190 Of a cylinders capacity exceeding 2,500 cm3, new: motor caravans; other € 0.8 per 1 cc 0 
87.0333 90 Of a cylinders capacity exceeding 2,500 cm3, used   
  WT/ACC/UKR/118
 Page 157Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
87.0333 901 Up to 5 years inclusive € 1.6 per 1 cc 0 
87.0333 903 Over 5 years € 2.4 per 1 cc 0 
87.0390 Other (with electric motors, other) € 100 per unit 0 
87.0310 Vehicles specially designed for travelling on s now; golf cars and similar vehicles € 0.6 per 1 cc 0 
87.1140 000 
87.1150 000 
87.1190 000 Motor-cycles (including mopeds) and cycles fi tted with an auxiliary motor, with or 
without side-cars, with a cylinder cap acity exceeding 500 cm3 but not exceeding 
800 cm3; exceeding 800 cm3; other  € 0.2 per 1 cc 0 
87.1610 990 Trailers and semi-trailers, for housing, exceeding 3,500kg 100 per 1 cc 0 
 
__________