RESTRICTED
WORLD TRADE WT/ACC/RUS/16/Rev.1
8April 1997
ORGANIZATION(97-1439)
Original: English
ACCESSION OFTHE RUSSIAN FEDERATION
Information Regarding theDevelopment of
Foreign Economic Legislation ofTheRussian Federation
Revision
ThePermanent Mission oftheRussian Federation hassubmitted thefollowing information
regarding thedevelopment ofRussian Federation legislation onforeign economic relations since the
lastmeeting oftheWorking Party heldon15-16 October 1996, withtherequest thatitbecirculated
totheMembers oftheWorking Party.
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Inaccordance withtheWTO practice foracceding countries, theRussian delegation haskept
theWorking Party regularly informed ofthedevelopment oftheRussian economy, regulation offoreign
economic activities andrelated matters. Seedocuments L/7410, WT/ACC/RUS/2, WT/ACC/RUS/4,
WT/ACC/RUS/9, WT/ACC/RUS/16, andother documents.
Thissubmission briefly reviews major Russian legislative andregulatory actsadopted inthe
areaofforeigneconomicrelationsbetween15August1996and15March1997,sincethelastsubmission
containinginformationregardingthedevelopmentofRussianFederationlegislation,WT/ACC/RUS/16.
Alldocuments mentioned below havebeensubmitted totheWTO Secretariat intheEnglish language
andareincludedontheup-datedlistofRussia'slegislativeactssubmittedforthismeetingoftheWorking
Party (WT/ACC/RUS/19/Rev.1).
Inaccordance withRussian Presidential Decree No.1216, dated 18August 1996, Russian
customsadministrationssince1October1996,havechargedVATongoodsoriginatingfromthecustoms
territory ofUkraine andimported intotheRussian Federation. Taxarrangements inRussian-Ukrainian
tradehavethusbeenbrought intoconformity withthose applied toRussia 'sforeign tradewithcountries
other thanCISmembers. Since Ukrainian authorities refund VAT toexporters during theexport of
goods from Ukraine toRussia, thetaxation regime implemented since 1October 1996, isalsofully
consistent withtherules generally accepted inworld trade, whereby VAT iscollected inthecountry
ofdestination (consumption) ofaproduct rather thaninitscountry oforigin.
Under Russian Presidential Decree No.1209, dated 1November 1996, andGovernment
Resolution No.1300, dated 31October 1996, barter transactions inforeign trade havebeensubject
togovernmental regulation. Theprincipal purpose ofsuchregulation istoprevent theuseofbarter
deals asachannel fortaxavoidance andillegal foreign currency drain from Russia. ARussian
participant inforeign economic activities whoisapartytoabarter transaction inforeign tradeisrequired
toobtain apassport forthistransaction fromanyMinistry ofForeign Economic Relations authorized
regional representative. Forthispurpose, theparty tothetransaction mustlisttheexports andimports
involved inthedealandguarantee thattheyareofequal value. Inaddition, heisobliged tocommence
import deliveries notlaterthan180daysafterthebeginning ofexport shipments. Thispackage ofWT/ACC/RUS/16/Rev.1
Page2
measures isprimarily atoolforillegal currency control, anditisnotaquantitative orother barrier
inthewayofproduct flows toandfrom thecustoms territory oftheRussian Federation.
On31October 1996, theRussian Government through itsResolution No.1299 approved a
uniform procedure fortheallocation ofexport andimport quotas should suchquotas beintroduced.
While theRussian Government doesnotplantoimpose quantitative restrictions onexports orimports
other thanthose notified, ifitbecomes necessary toimpose suchrestrictions (quotas) inaccordance
withprocedures recognized inArticles XI,XII,XIX, XXandXXIofGATT 1994, theyareallocated
inaccordance withtheabove Government Resolution through tenders andauctions which may, ifan
opentender procedure isselected, beheldpublicly, onanon-discriminatory basis andinconformity
withnational-treatment rules.
ThesameGovernmentResolutionNo.1299of31October1996approvedanup-datedProcedure
fortheLicensing ofExports andImports, making therespective Russian formalities consistent with
therequirements andprovisions oftheWTO Agreement onImport Licensing.
Aspartofthisgeneral procedure forexport andimport licensing, Russian Government
Resolutions No.1590, dated 30December 1996, andNo.77,dated 28January 1997, haveintroduced
licensing forethanol andvodka imports from1997. Thelicensing procedure doesnotprovide forany
quantitative restrictions, andsimply involves obtaining aconsent fromtheMinistry oftheEconomy
andalicence from theMinistry ofForeign Economic Relations inaccordance withtheprocedure
described inWT/ACC/RUS/10.
On7December 1996, theRussian Government through Resolution No.1461established new
rules forthecustoms valuation ofexported goods. These rules conform withtheprovisions and
requirements ofArticle VIIofGATT 1994 andthecorresponding interpreting WTO Agreement as
closely aspossible.
Inorder toprevent foodstuffs withinadequate consumer protection from repeatedly getting
intotheRussian market, theRussian Government inaccordance withtheprovisions ofArticle XX
ofGATT 1994 hasadopted Resolution No.1575 of27December 1996, which provides thatasof
1May1997, allimported food products offered forsaleinRussia must beaccompanied byan
information labeldescribing theircharacteristics intheRussian language. Thisrequirement willbe
appliedconsistentwiththeprovisionsofArticleIIIofGATT1994andtheWTOAgreementonTechnical
Barriers toTrade.
Russian Government Resolution No.1560, dated 27December 1996, hasintroduced anew
commodity classification entitled “Harmonized System 1996", asof1January 1997, toreplace the
earlier usedHarmonized System 1988. Thismarked animportant steptowards harmonizing Russian
foreign trade rules andprocedures withtheapplicable provisions oftheworld trade regime as
recommended bytheCustoms Cooperation Council (WCO). Resolution No.1560contains Russia 's
current anddetailed import customs tariff, withthelisting ofratesforallHS1996items andincorporates
allchanges andadditions made toitsince itsadoption on1July1995.
ThenewFederal Law"OnExcises" entered intoforce inRussia on10January 1997. Under
thisLaw, allexcise taxratesforimports andthose fordomestic products arenowcompletely identical
andasignificant number oftherateshavebeensubstantially lowered. Thevastmajority ofthenew
excises arelevied atspecific rates, withonlythree categories ofproducts (jewellery, gasoline, and
motor vehicles) subject toadvalorem rates. Even inthelatter case, theformula forcalculating excise
taxissuchthattheamount ofexcise levied onimports andthatlevied oncomparable domestic products
isthesame. ThenewLaw"OnExcises" tookimmediate effect, superseding allactspreviously inforce
inthisarea.WT/ACC/RUS/16/Rev.1
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Itisalsonecessary tonotethemore significant regulations which wereabolished during the
period under review.
RussianGovernmentResolutionNo.1125,dated19September1996,whichimposedquantitative
restrictions onethanol andvodka imports totheRussian Federation, wasabolished attheendof1996.
Theinstructions oftheRussian State TaxService, whereby VAT refunding during exports
wascarried outonthebasisofaforeign customs administration 'snoteonthearrival oftherespective
cargo tothecountry ofdestination rather thanonthebasisofaRussian customs administration 'snote
ontheexportation ofthecorresponding goods from thecustoms territory oftheRussian Federation,
were invalidated inFebruary 1997. While designed toprevent fictitious exports, these instructions
nonetheless posed formidable technical barriers torealtrade.
TheGovernment oftheRussian Federation intends tocontinue itspolicy ofliberalizing foreign
trade andmaking itsnational legislation consistent withWTO rules andprovisions.