RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/RUS/22 
21 November 2001 
 (01-5896) 
Working Party on the Accession 
of the Russian Federation    
 
 
 
WORKING PARTY ON THE ACCESSION  
OF THE RUSSIAN FEDERATION 
Checklist of Issues Relating to the Foreign Trade Regime of the Russian Federation  
Note by the Secretariat  
This note has been prepared in response to a re quest by the Working Pa rty at its meeting on 
26-27 June 2001 to present the issues raised by memb ers further to that meeting in a consolidated 
form.  
___________ 
GENERAL 
1. Members expressed appreciation for the work undertaken by the Russian Federation in 
preparing the documentation circulated in WT/A CC/SPEC/RUS/20 and 21. In this regard, it was 
stressed that the comments and issues raised on these documents while intended to facilitate the 
Russian Federation's work of updating and expandi ng the information needed for substantially 
moving the accession process forward could not be rega rded as definitive or exhaustive statements of 
concerns or requests for clarification which might be further required. 
2. As a general remark, it was indicated that members expected to gain a more precise 
understanding of the Russian Federation's intended actions to eliminate trade inhibiting and WTO 
inconsistent measures identified in the course of Working Party proceedings to date, to create WTO 
mandated institutions in the trade re gime (e.g., inquiry points, prior pub lication of trade-related rules, 
right of appeal, transparency in administrative rulings, methods of notification to the WTO, new 
procedures, and protections of traders rights), and, to enact relevant legislation in line with WTO 
requirements.  It was felt that these actions were essential to the development of a viable accession 
package, along with information demonstrating ho w and when conformity with WTO requirements 
would be established 
REMARKS ON THE RUSSIAN FEDERATION’S FOREIGN TRADE REGIME 
ECONOMIC POLICIES 
3. It was noted that the information provided under this chapter purported to describe basic 
economic policies, with special emphasis on price controls, foreign exchange measures, foreign 
investment regime, and privatization, as these i ssues may have an impact on the operation of WTO 
provisions.  In light of this, it was essential th at the information provided should go beyond 
generalities and should focus on issues that impact trade. WT/ACC/SPEC/RUS/22 
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 Monetary and Fiscal Policy  
4. Noting the Russian Federation's statement that the indirect taxation regime was now 
compatible with WTO requirements, including t hose under Article III of GATT 1994, questions were 
raised as to whether this would indicate that all differential treatment in favor of imports from and 
exports to CIS countries had been eliminated. The issue of whether the Russian Federation was still 
levying VAT on any exported goods was also raised.  It was suggested that further information on the 
mechanism to ensure that taxes levied at the sub- national level were applie d in a manner consistent 
with the WTO obligations (e.g. nati onal treatment) would be required. 
Foreign Exchange and Payments  
5. Concern was expressed that existing require ments on foreign exchange acquisition and 
retention might inhibit trade.  Additional info rmation was sought on the status and operation of 
foreign exchange control and regulation measures cu rrently maintained including, but not limited to, 
restrictions on foreign exchange retention, rest rictions on the ability to obtain or retain foreign 
exchange for trade and payments purposes, restricti ons on the right of residents to acquire and hold 
foreign exchange and to have accounts in forei gn banks, pre-payment requi rements for imports, and 
the  acquisition charge of 1 per cent levi ed on the purchase of foreign exchange.   
6. Additional points raised related to the existen ce of any situations under which the government 
provides foreign exchange to traders, and any plan s to eliminate restrictions in light of Russia's 
favorable balance of payments position.  It was also  noted that Russia's present restrictions included, 
inter alia , measures that discriminated against imports from distant countries and would neither meet 
the requirements of MFN treatment under Article I of GATT 1994 nor those relating to the provisions 
of Article XI of GATT 1994 and Article  4 of the Agreement on Agriculture. 
Investment Regime  
7. Additional information was requested on the inv estment provisions of  the amendments to the 
Law on Production Sharing Agreements adopted on  7 January 1999, Government Resolution No. 716 
of 7 July 1998 "On Further Measures for State Support for Civil Aviation", Presidential Decree 
No.135 "On Attracting Additional Investments to Pr omote the Automobile Industry" of 5 February 
1998, and Government Resolution No. 413 "On Add itional Measures to Attract Investments for the 
Development of the Domestic Automotive Industry" of 23 April 1998. 
8. Noting that in the course of the Working Pa rty meeting in December 2000 the Russian 
delegation stated that it was Russia's intentio n to phase out all TRIMS and Subsidies Agreement 
violations prior to accession to the WTO, a descripti on was requested of any plans the Government of 
Russia had undertaken for reforming measures in  these areas as well as an update on specific 
legislative plans and the time frame to achieve this. 
9. A descriptive summary was requested of the provi sions contained in the draft Investment Law 
and the draft Tourism Law, together with an indication of the current status of these provisions in the Russian Federation legislative process and their prospects for enactment. 
State Ownership and Privatization  
10. It was generally felt the information provided by the Russian Federation in 
WT/ACC/SPEC/RUS/20 and WT/ACC/SPEC/RUS/21 was ve ry helpful.  However, more information 
was required on the scope and modalities of Russia's future privatization efforts and on those sectors 
of the economy that would not be privatized.  WT/ACC/SPEC/RUS/22 
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 11. More information was also deemed necessary on the criteria applied by "local government 
authorities" in taking decisions on whether foreign participation in privatization was to be permitted 
and, if so, under what conditions. A clarification on the nature of the relationship between local and 
the national regulatory framework was also sought.  
12. A commitment was sought of Russia to report on de velopments in its program of privatization 
as long as the privatization program was in exis tence and on other issues related to any ongoing 
economic reforms relevant to its  obligations under the WTO.  
Pricing Policies  
13. A clarification was required on the extent to which prices charged by so-called "natural 
monopoly" suppliers of goods and services would differ depending on whether they were sold to a 
domestic or a foreign purchaser or - in the case of services associated with the sale of goods - they 
related to goods destined for export ra ther than for domestic consumption. 
14. Regarding price controls applied at the federa l level, questions were raised on how state 
controlled prices were determined and what their rela tion to international prices was. The provision of 
HS Item numbers for goods subject to price controls listed in Reference Paper 3 of 
WT/ACC/SPEC/RUS/21 was requested.  Additi onal information was sought on Russia’s 
announcement of efforts to unify its domestic and fo reign operating tariffs for railways, as well as a 
status report on developments. 
15. Regarding price controls applied at the sub-centr al level, an inquiry was raised on the scope 
of authority at the sub-central level to apply price controls and on whether these measures were 
actually reviewed by the Federal Authorities.  
16. Concern was raised that Russia’s price controls on energy and the prices at which it was made 
available on a selective basis to certain industri es might have trade implications. The Russian 
Federation was asked to describe the provisions of Order No. 12/1 of the Federal Energy Commission 
of 24 March 1999  "On Granting a 50 Percent Reduc tion of Prices of Gas to Enterprises Which 
Produce Chemical Fertilizers, Chemical Protecti ons for Plants, and Raw Materials for Production 
Thereof, in 1999" (as amended on  4 June1999).  Specific clarification was asked as to whether this 
Order was extended, whether it was still in effect, or whether there were other legal provisions that 
provided for similar price reductions for the fertilizer industry or for other industries. 
17. A commitment was sought that Russia would apply such measures in a WTO-consistent 
manner and would take into account the interest s of exporting WTO Members as provided for in 
Article III.9 of GATT 1994 in the app lication of its price controls.   
18. A confirmation was also sought that Russia would publish notices of the goods and services 
subject to State price controls and would continue to do so after accession. 
Competition  Policy 
19. Further details were requested on the role of the Ministry on Anti-Monopoly Policy and its 
interaction with other federal or sub-federal agen cies with responsibilities in the competition field.  
Clarification was sought on the availability of public  information, on the role and responsibilities of 
the Ministry vis-à-vis Russian and foreign companie s and on specific actions taken by the Ministry 
(e.g. investigations, remedies in the case of anti-competitive practices etc.). 
20. It was noted that the Russian Federation ha d indicated that the Ministry was already 
considering more that 6,500 claims of possible vi olations of anti-competitive practices, finding proof WT/ACC/SPEC/RUS/22 
Page 4  
 
 of violations in 5,077 cases (78 pe r cent).  In 1,764 cases (27 per cent), violations were eliminated or 
"other administrative orders" brought to effect, and in 3,441 cases (53 per cent) "penalties were 
imposed".  In this regard, clarification was requi red on which sectors of the economy were concerned 
by these investigations and what remedies had been imposed.   
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
21. Information was requested on how the Russian Federation government was working with the 
Experts Committee of the Duma to ensure that WTO- inconsistent draft laws would not be enacted and 
that those already in place would be phased out.  More information was also sought on the hierarchy 
of legislative acts in Russia, together with an explicit statement on the status of international 
agreements like the WTO vis-à-vis Russian law (document WT/ACC/SPEC/RUS/20 referred to 
"treaties" but did not clearly state that the WTO was deemed to be a "treaty" for this purpose), and a 
description of how, in legal terms, the protocol  package would be ratified and WTO rules and 
commitments implemented in Russia. Further info rmation was required on whether there were any 
areas relating to matters under WTO provisions wh ere sub-federal entities might have exclusive 
jurisdiction. A clarification was therefore needed on whether the Russian Federation authorities would 
be required to submit the approved protocol packag e to sub-central entities for their approval in the 
ratification process.   
22. Confirmation was sought regarding uniform a pplication of WTO provisions throughout the 
territory of the Russian Federation as well as an unambiguous confirmation of the extent of central authority to enforce WTO requirements vis-à-vis sub-cen tral entities (with legal citations).  It was also 
felt that standard protocol commitment language would be required to clarify the right and the 
willingness of the central Government to take the initiative to overrule any WTO-inconsistent 
measures which might be identified and, as necessary, to  provide the right of appeal to an independent 
tribunal or judicial review. 
23. In addition, a more explicit description was re quired regarding to the right of administrative 
appeal, confirmed in WT/ACC/SPEC/RUS/20, in particular concerning the right of appeal to an 
independent tribunal or judicial review and the pr ocedures applied (e.g. fees, timetables, etc.).  
POLICIES AFFECTING TRADE IN GOODS 
Trading Rights (the right to import and export) 
24. It was noted that in document WT/ACC/SPEC/R US/20 the Russian Federation confirmed the 
elimination of the state trading monopoly and descr ibed the nature of the requirements placed on 
individuals and firms that wish to import and expor t.  More information was nevertheless needed on 
the draft "Laws on Registration of Enterprises and the Regulation of Trading Activity".  In particular, 
an outline describing how these laws would make regi stration requirements for the right to import and 
export transparent and nondiscriminatory was request ed.  Information was requested on whether the 
requirement that import and export contracts be regi stered would be restored.  More information was 
also needed concerning the requirements imposed by  sub-federal entities on le gal or natural persons 
that might affect their right to engage  in importation or exportation of goods. 
25. Concern was expressed at the restrictive con sequences of the current system of activity 
licencing for the sale of alcoholic beverages.  In formation was requested on the Russian Federation 
intention to introduce new legislation in this area.  Noting that the fees charged for the right to trade in 
imported alcoholic beverages greatly exceeded tho se charged for domestic distribution or export, it 
was felt that more detail was also required on  this  and on any other activity licencing fees associated 
with importation.   WT/ACC/SPEC/RUS/22 
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 26. It was further noted that, typically in the accession processes, a commitment was taken that 
laws and regulations relati ng to the right to trade in goods and all fees, charges or taxes levied on such 
rights would be in full conformity with the acced ing government WTO obligations, including Articles 
VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and th at the relevant laws and regulations would be 
applied in full conformity with these obligations.   
1.  Import Regulation Customs Regulations and Customs Tariff 
27. Noting that the "Law on Customs Tariff" pertaini ng to the application of customs duties, was 
being amended and that the Working Party would need to be able to review its provisions, information 
was sought on the relevant parts of the draft Law. 
Tariff Quotas , Tariff Exemptions 
28. A description of the current and prospective legal authority for auctioning licenses and how 
this provision had been used in pr actice was requested.  In this regard, it was felt that such a method 
of allocating quotas or licenses was inconsistent w ith WTO provisions, e.g., Articles II, XI, and XIII 
of GATT 1994 and Article 4 of the Agreement on Ag riculture, and consideration should be given as 
to how this practice should be amended or eliminat ed prior to the Russian Federation's accession to 
the WTO.  It was also noted that, in any case, full details of tariff quota administration measures should be provided in order to assess their WTO conformity. 
Other Duties and Charges  
29. A commitment was sought that the Russian Federation would revise its domestic 
law/regulations in this area so as to eliminate and bi nd at "zero" any such charges that are not tariffs, 
domestic taxes applied to imports, or fees app lied for services rendered in its Schedule upon 
accession. 
Fees and Charges for Services Rendered  
30. It was noted that the information on the Russian  Federation's customs and other fees applied 
to imports provided in WT/ACC/SPEC/RUS/ 20 and WT/ACC/SPEC/RUS/21 was helpful. A 
description on how Russia intended to modify its cu rrent regime was deemed necessary as the Russian 
Federation indicated its intention to  revise its import fee structure and that this was provided for in the 
new draft "Customs Code".   
31. Noting that fees charged for customs clearance were calculated on an ad valorem  basis, the 
question of how they would relate  to the cost of services rendered was raised. The WTO rationale for 
charging fees for consular purposes at a lower rate from certain countries where the service was 
performed (the Baltic countries and CIS countries) w as also questioned.  Clarification was sought on 
any possible discriminatory aspect involved in the a pplication of port user fees between foreign and 
domestic users.  A clarification was also requested regarding the nature of the services rendered by the 
additional customs charge for customs clearance, an d on the precise meaning of statements such as 
"for performing other notary actions" or "for the pe rformance of the technical  work for the making of 
the documents".  
32. A commitment was sought that the Russian Federation would revise its domestic 
law/regulations to ensure that, upon accession, any fees or charges for services rendered related to 
importation or exportation w ould be applied only in conformity w ith Article VIII of the GATT 1994, WT/ACC/SPEC/RUS/22 
Page 6  
 
 and that information regarding the application and level of any such fees, revenues collected and their 
use would be provided to WTO Members upon request.   
33. Concerning fees that were applied only to impor ts for requirements normally applied to both 
imports and domestic products, e.g., for standards ce rtification or vehicle taxes, these did not appear 
to be consistent with Article III, and it was felt that they should be revised or eliminated.  A 
commitment was sought that any such fees would be applied in conformity with WTO provisions 
upon accession. 
Application of internal taxes on imports  
34. The comprehensive listing of excise taxes a nd other information on their application to 
domestic and imported goo ds contained in WT/ACC/SPEC/RUS/20 was noted with appreciation. 
Excise Taxes 
35. Noting that when excise taxes were collect ed on imports from CIS countries there was a 
deduction from the charge for excise taxes applied in  the exporting CIS country, it was stressed that 
this could constitute an apparent vi olation of Article I.  In addition, the differentiation of excise tax 
rates within specific categories of alcoholic bevera ge, e.g., for different types of beer, wine, and 
spirits, might have a de facto  discriminatory effect on imports.  A clarification was requested on the 
definition of cigarettes designated by "cigarettes with filter of 1,2,3 and 4 classes as per GOST" and 
on whether those were imported or domestically produced or both. 
36. Noting further that differential rates of excise  tax were levied on natural gas depending on 
whether it was sold in Russia, for export to other CIS countries (15 per cent), or whether it was for 
export to other countries (30 per cent), it was felt that  this practice should be brought  in conformity 
with the WTO upon accession.  Moreover, a more de tailed clarification was needed on the national 
treatment implications of calculating excise taxes on  imports on the customs value plus the total of 
customs duties and levies payable, while the excise taxes on domestically produced goods were based 
on actual value only.  
Value Added Tax 
37.  A confirmation was sought of the Russian Fede ration's statement that VAT was now applied 
in an uniform manner to all domestic  and imported products and that was also the case with respect to 
CIS countries as from 1 July 2001.  A clarification was also requested on whet her the same principle 
applied to imports and exports of energy products  such as gas and oil. A question was also asked 
concerning the different VAT  treatment of ice-cr eam produced from milk and dairy products (10%) 
and ice-cream produced from fruits and berries (20%).  
38. A confirmation was further sought that in no case VAT exemptions listed in Reference Paper 
7 in WT/ACC/SPEC/RUS/21 were applied in a ma nner more favorable to domestic output than 
imports of similar products. 
39. A commitment was required that, upon accession, Russia’s domestic taxes, including VAT 
and excise taxes, and other taxes applied to goods , would be applied in a non-discriminatory manner 
to imports regardless of country of origin and to  domestically-produced g oods in compliance with 
Articles I and III of the GATT 1994.  WT/ACC/SPEC/RUS/22 
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 Quantitative import restrictions, including prohibitions, quotas and licensing systems  
40. Noting that the Russian Federation, under Fede ral Law No. 61-FZ, had introduced a ban on 
imports of ethyl alcohol as a temporary measure required to combat tax fraud, a clarification was requested on whether the Russian authorities still cons idered this ban temporary and  what was the 
actual status of the ban and deliberations for its termination.  A confirmation was sought that Russia 
would lift the ban prior to its WTO accession. 
41. Regarding Russia's claim that import restricti ons on alcoholic beverages would follow under 
GATT Article XI:2 (c) exceptions for agricultural products, it was felt that any recourse to these 
exceptions should be explained in detail.  Moreover, it was noted that measures such as the ethyl 
alcohol import ban appeared to be prohibited unde r Article 4 of the Agreement on Agriculture.  
42. Regarding Russia's statement that a justifica tion to support the application of non-automatic 
import licenses for alcoholic beverages might be  found under Article XX of GATT 1994, more 
explanation was deemed necessary to understand how the provisions in the chapeau of Article XX 
could be met in this case.   
43. Concern was also expressed regarding how, once the ban had been lifted, imports of ethyl 
alcohol would be affected by Federal Law No. 1199 "On the Approval of Rules for the Issuance of 
Quotas for the Manufacture of Ethyl Alcohol from All Types and Special Permits for Its Delivery".  As the said Law seemed to contemplate placing quot as on deliveries by domestic producers, the issue 
remained as to whether Russia eventually planned to place quotas on imports. 
44. Noting that for alcoholic beverages, import li censes were only issued where the applicant 
already had an activity license, it was felt that furt her explanation was necessary on the rationale for 
this apparent double requirement.  Information wa s also required on the number of licenses issued 
every year and on how many of these were currently in force.   
45. As for the reference to a law, in force but not a pplied, that restricted imports of distilled spirits 
to no more that 10 per cent of the Russian market a nd stipulated that within this quota at least 60 per 
cent of imports must contain 15 per cent of alcohol or less, a clarification was sought as to whether 
the Russian authorities actually intended to repeal this law. 
46. Noting that under this section there was no reference to any other quantitative import 
restriction, prohibition or quota, a clarification w as requested on whether this would imply that the 
Russian Federation did not maintain any other such measures.  A possible quota arrangement in relation to the importation of sugar from Ukrain e was mentioned in this regard.      
Import Licensing systems 
47. It was noted that in the year 2000 the Duma’s  Health Committee had tabled draft amendments 
to the "Law on Medicines"  which would have restricted imports  of pharmaceuticals having domestic 
analogues.  As it was felt that this draft law, if adopted, would have been a violation of GATT Article 
III and XI, a clarification on status of this legislative initiative was requested. 
48. Regarding Government Resolution No. 1539 "On the importation in and the exportation from 
the Russian Federation of Medicaments and Pharma ceutical Substances", it was indicated that  
Paragraph 2 of this resolution appeared to suggest  that foreign manufactures must have offices in the 
Russian Federation in order to obtain an import license.   In this regard, a clarification was needed if 
this would imply that foreign manufacturers of ph armaceuticals should have an office in the Russian 
Federation to obtain a license to import, as such a requirement would be WTO inconsistent. The 
Russian Federation was asked to elaborate on the pur pose of these provisions, particularly in the case WT/ACC/SPEC/RUS/22 
Page 8  
 
 of licensing products such as flavourings and dual use precursor chemicals,  and on whether they 
require the examination of every contract to import. 
49. Noting that pharmaceutical exporters had expr essed concern over certain Russian import 
licensing requirements (for instance, if the molecule unique to the pharmaceutical had not changed, periodic renewal of licenses appeared unnecessary and could be expensiv e and burdensome to 
industry), it was asked whether such requirements we re equally applied or not to similar domestic 
products, as they could constitute a violation of Ar ticle III. Noting further that some pharmaceutical 
exporters had expressed concern that the administration of licenses at MOH and MEDT did not presently meet WTO requirements such as transparen cy, fees for services rendered, processing within 
a reasonable timeframe and forbearance on minor docum entation errors, a clarification was sought on 
the steps that the Russian Federation intended to ta ke to ensure that the administration of import 
licenses would conform to WTO requirements.  
50. Doubts were expressed regarding the explana tion given in WT/ACC/SPEC/RUS/20 that the 
requirements for some of the items listed (e.g., cer tain metals and precious stones, ethyl alcohol, 
vodka, pharmaceuticals, and plant protection chemi cals) were consistent with WTO provisions. In 
addition, it was argued that the prior authorizati ons required for importation of goods subject to 
Hygienic Assessment and Mandatory Certification could act as disguised barriers to trade or might not be applied uniformly to imports and domestic output. 
51. Regarding the information provided by the Russian  Federation in relation to goods subject to 
non-automatic licensing, more detail was required on how the Russian authorities considered that 
each of the requirements of Article 1 and 3 of the Agreement on Import Licencing Procedures had 
been met in relation to non-automatic import licenci ng in the administration of its TRQ for raw sugar 
(HS 1701.11). 
52. A commitment was sought that, upon accession, Russia would apply import licensing 
measures, including those used for standards or sanitary certification, in conformity with WTO Agreements, in particular Articles XI, XII, XIII,  XIX, XX and XXI of the GATT 1994, and the WTO 
Agreements on Agriculture, Sanitary and Phytos anitary Measures, Import Licensing Procedures, 
Safeguards and Technical Barriers to Trade.  To facilitate this understanding, Russia was invited to 
update WT/ACC/RUS/10, the original description of the import licensing regime, and the information 
provided in WT/ACC/SPEC/RUS/1 and WT/ACC/SPEC/RUS/2 and to include information on the specific criteria for the application of the various licensing requirements.   
Customs Valuation  
53. It was reiterated that specific issues of c oncern in this area still included the use of de facto  
fixed import prices for some goods, the need to include more precise provisions for valuation of imports possibly involving related parties, and th e inclusion of the Interpretative Notes to the 
Agreement in legal text.  The use of fixed import pr ices was indicated as a priority issue.  Any use of 
minimum or arbitrary valuation methods, even if intended to address a specific problem, must be 
eliminated prior to accession and replaced with procedures meeting WTO requirements.   
54. Noting that the Russian Authorities had mentione d "a special technique of customs control" 
recently introduced by the State Customs Committe e in order to prevent "gross under-invoicing" of 
customs value, a clarification was requested as to the modalities of applicati on and legal justification 
of this special technique. 
55. It was also noted that currently applied law did not fully appear to implement Article 13 of the 
Agreement on the Implementation of Article VII of GATT 1994 which provided for a guarantee 
system allowing an importer to withdraw goods from customs pending final determination of the  WT/ACC/SPEC/RUS/22 
 Page 9 
 
 
 customs value if he provided sufficient guarantee.  Th is was a critical provision in terms of ensuring 
that customs procedures do not, in themselves, block imports.   
56. A confirmation was sought that relevant Custom s decisions, e.g., Orders and Letters, and the 
decisions of local customs authorities, that traders n eeded to be able to revi ew and understand, would 
be made available for this purpose to traders and ot her interested parties promptly and at reasonable 
cost.  Information was required on how the Russi an State Customs Committee and its sub-central 
affiliates, published and/or made available their rulings and other information for importers and 
exporters. 
57. Further information was needed on the proposed  new legislation in this area prior to 
meaningful discussions on the extent to which furt her adjustments would be required to bring the 
Russian practices in full conformity with WTO re quirements. It was noted that the procedural 
protections in the WTO Agreement that facilitate  importation were important benefits for WTO 
members and should be established in Russia upon accession. 
Pre-Shipment Inspection  
58. Noting that the Russian authorities had stated  that Russia did not require any inspection 
services prior to shipment, a commitment was sought  indicating that if such services should be 
employed in the future, they would conform to WTO provisions in their operations, e.g., in the 
application of fees for services rendered, observance of other WTO requirements in customs processing, and in providing right of appeal to the Government. 
Rules of Origin 
59. Noting that the rules of origin provisions contained in the "Law on Customs Tariff" did not 
appear to fully reflect the requirements of the WT O Agreement, it was felt essential to ensure that 
both the new draft Law on Rules of Origin and dr aft Amendments to the Law on Customs Tariff 
would provide revised rules of origin more consis tent with WTO provisions.  Clarification was also 
required on whether these new laws w ould cover both preferential and n on-preferential rules of origin. 
60. Particular interest was indicated in respect of provisions concerning the right to request an 
origin determination from the Government prior to  shipment, and a commitment requested covering 
these provisions in line with the requirements of Ar ticle 2(h) and Annex II, paragraph 3(d) of the 
Agreement on Rules of Origin. In addition, it was al so indicated that Russia’s preferential rules of 
origin for CIS should fully reflect the interim rules of Annex II of the Agreement.  In this regard, a 
clarification was needed on whether the "Decisi on of the Council of the Governments of the 
Commonwealth of Independent States on the Rules for the Determination of a Country of Goods' 
Origin" of 24 September 1993 would currently me et these requirements and a commitment was 
sought as to their implementation upon accession. 
Anti-Dumping, Countervailing Duties, and Safeguard Regimes  
61. Concerning anti-dumping, it was noted that the description of the current legislation provided 
by the Russian authorities did not appear to be consistent with relevant WTO provisions.  In 
particular, investigations seemed to be limited to injury and causality aspects without requiring a 
proper determination of dumping, while any measures applied would be expected to remain in place 
for "a limited period of time necessary to eliminate in jury", thus not necessarily complying with the 5-
year maximum duration provided for measur es undertaken under the WTO Anti-Dumping 
Agreement. WT/ACC/SPEC/RUS/22 
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 62. Concerning safeguards, it was felt that more  information was required on the measures 
currently in place or under consideration by the Russi an authorities (e.g. on caramels and steel) before 
making any assessment of their WTO compatibility. 
63. Noting that new legislation was being prepared in these areas, including a new Law "On 
Additions and Amendments to the Federal Law On Protection of Economic Interests of the Russian 
Federation in Foreign Trade in Goods", it was felt that the Working Party should be given an early 
opportunity to review the content and coverage  of these new legislative acts as well as any 
implementing regulations.  As it was apparent that the Russian Federation intended to make recourse 
to such measures to regulate trade, the importance of devising an appropriate commitment that should 
confirm the full conformity of the new Law and re gulations and their modalities of application with 
relevant WTO Agreements was stressed. 
2. Export Regulations 
Export Restrictions 
64. It was recalled that export duties acted as indi rect subsidies to domestic down-stream users 
and could thus distort international trade. The comp rehensive listing of export duties, the list of export 
restrictions and the information provided on licensi ng and other prior authorizations presented by the 
Russian authorities was all welcome information.  Noting that Russia was preparing new legislation 
on import and export licensing and on application of standards and the certification of imports, it was 
felt that this information should be updated when th at legislation was in a more advanced form.   
65. In particular, more information was requested  on the procedures followed and fees charged in 
connection with the issuance of export licences.  A confirmation was sought that any fees charged on 
exports did relate to the cost of service rendere d in accordance with WTO provisions.  The Russian 
authorities were asked to inform the Working Party of any legislative changes affecting the general 
customs regulation of exports or any similar proposal s.  All restrictive measures which could not be 
justified under WTO provisions should be elim inated upon accession and should be apply in the 
future only if in conformity with these provisions. 
Export Subsidies  
66. The need to continue efforts to clarify wh ether benefits provided to certain exporting 
industries in Russia would constitute prohibited export  subsidies was stressed.  In particular, more 
information was sought regarding the price and availa bility of natural gas to certain export industries, 
e.g., fertilizer, vis-à-vis the price and availab ility to other commercial entities within Russia. 
67. It was noted that Russia was developing a comprehensive draft law on State Aids that should 
address these issues and that deal comprehensivel y with subsidies, i.e., those provided for as 
"revenues foregone" through tax and tariff exempti ons or special pricing polities, as well as those 
provided for in the budget. For subsidy measures ultima tely identified, the request addressed to Russia 
was to revise its domestic law/regulations to e liminate prohibited industrial export subsidies upon 
accession.   
68. A commitment was also sought that from the date of accession Russia would not maintain 
subsidies, including export subsidies which met th e definition of a prohibited subsidy, within the 
meaning of Article 3 of the Agreement on Subsidi es and Countervailing Measures, that it would not 
introduce such prohibited subsidies in the future, a nd that export financing and other export promotion 
policies would be operated in c onformity with WTO provisions.  WT/ACC/SPEC/RUS/22 
 Page 11 
 
 
 3. Internal Policies Affecting Foreign Trade in Goods 
Industrial Policy, including Subsidies 
69. Noting that WTO rules on subsidies covered stat e benefits given through revenues forgone, as 
well as those financed through budgetary a llocations, it was felt that WT/ACC/SPEC/RUS/20 
appeared to address the issue of prohibited subsidi es but did not address other industrial subsidies that 
should be notified under the SCM Agreement, whether or not they are eliminated. The comprehensive 
draft law on State Aids should address these issues as well.  
70. The Russian Federation was asked to describe its  subsidy system more broadly and confirm 
that any subsidy programs would be administered  in line with the Agreement on Subsidies and 
Countervailing Measures, whether at the national, sub- national, regional or local level, and that all 
necessary information on programs to be notified, if  such exist, would be provided to the Committee 
on Subsidies and Countervailing Measures in acco rdance with Article 25 of the Agreement upon 
accession.  
Technical Barriers to Trade 
71. It was noted that, so far, the Russian author ities had provided a general outline of current 
elements of Russia's system of standards and cer tification, without including information on the 
required institutional arrangements.  Russia’s effort to amend the current system to ensure effective 
and ongoing compliance with TBT obligations also remained to be reviewed.  It was generally 
understood, however, that Russia had new or ame nded laws in development on Standardization, 
Metrology, and Conformity Assessment whose pr ovisions should address a number of the concerns 
expressed by the Working Party with Russia’s current TBT regime, and might go a long way towards 
reforming the present system to prevent unnecessary technical barriers to trade.  
72. More specifically, a description was now require d on how the new legislation would address 
identified concerns such as the need for clarity in  Russia’s TBT legislation; for additional horizontal 
guidance to authorities on their development and app lication of technical regulations; for additional 
transparency and enhanced due process regulations ; and for action to bring fees for conformity 
assessment services into line with WTO provisions. Russia should further describe its intentions to 
clarify and institutionalise, domestically, the respons ibilities of various agencies in implementing the 
WTO Agreement on Technical Barriers to Trade,  including the designation of an authority 
responsible for overall implementa tion and, more generally, the practical arrangements in place to 
ensure compliance of measures covere d with WTO relevant provisions.   
73. A commitment was sought from Russia to implem ent the Agreement on Technical Barriers to 
Trade upon accession. 
Sanitary and Phytosanitary Measures 
74. It was felt that the information provided in WT/ACC/SPEC/RUS/20 and 
WT/ACC/SPEC/RUS/21 was a useful compendium of current practice in the Russian Federation. This information was insufficient to assess  to what extent is this regime was consistent with WTO 
provisions.  Information on currently applied ph ytosanitary measures was also required.   
75. While recognizing that Russia was taking steps to  strengthen its SPS regime and bring it into 
compliance with WTO rules, it was considered that there was still substantial work ahead for Russia 
to develop a predictable, transparent, and science-ba sed regulatory system that would ensure due legal 
process and sustained adherence to international oblig ations.  In practice also, much could be done to 
build confidence through better prio r consultations with importers. WT/ACC/SPEC/RUS/22 
Page 12  
 
 76. It was further stressed that Russia needed to bring its legislative and regulatory procedures 
into compliance, and provide the necessary doc umentation to demonstrate how these current 
deficiencies would be addressed. An update of th e Russian Federation SPS Action Plan would be 
considered  particularly helpful at this stage.  More information was also sought on the inspection 
procedures and associated charges in force in relati on to import of poultry meat and red meat as that 
available indicated that the effect of recently in troduced measures had made the testing procedures in 
the country of export more burdensome and ha d raised the charges levied on imports.  
77. A commitment was sought from the Russian Fe deration to fully apply the SPS Agreement 
upon accession. 
Trade-Related Investment Measures (TRIMS)  
78. It was felt that the information on TRIMS provided in WT/ACC/SPEC/RUS/20 did not fully 
address the issues that had been raised in th e Working Party on the measures in place in the 
Production Sharing Agreements and the investment-p romoting legislation for automotive sector and 
civil aviation. While understanding that these programs might be eliminated, a confirmation was sought from the Russian Federation together with a commitment confirming the elimination of any 
existing TRIMS upon accession. 
State-Trading Enterprises  
79. It was noted that Russia had identified five en terprises as state-trading enterprises that should 
be subject to notification under GATT Article XVII.  One of these enterprises, Rosugol, was 
dissolved in November 1997. 
80. More information was required on the role of  marketing enterprises such as Exportkhleb, 
Prodintorg, and Roskhleboprodukt in  agricultural trade, describing the legislation that had specifically 
ended the special rights and privileges that these or ganizations had traditiona lly received as monopoly 
trade or marketing entities.   
81. Regarding a recent government resolution that imposed licensing requirements on 
procurement, processing, storing, and marketing of gr ain and grain products for state needs, as well as 
on production of most grain products (bread, flour, etc.), a clarification was requested on the purpose 
of these licenses, and on whether both foreign and domestic companies were subject to them. 
82. Concerning reports that 150 bankrupt grain fac ilities (mills, storage fac ilities, etc.) had been 
reverted to state control, a clarification was requested on how this process was being implemented, and what role the government would play in th e operation and management decisions of these 
facilities.  Further information was also deemed ne cessary on the extent to which Russia’s agricultural 
trade was still conducted through inter-governmental agreements between Russia and other countries, 
especially those in the CIS, and on whether any g overnment-to-government barter arrangements were 
still in place. 
83. In addition to listing state trading enterpri ses, a confirmation was sought that upon accession 
Russia’s state-trading enterprises would be administered and operated in conformity with WTO 
provisions, including Article XVII and the Understa nding. A confirmation was also sought that the 
laws and regulations governing the trading activiti es of State-owned enterprises, as well as enterprises 
with special or exclusive privileges (including practi ces such as state orders, purchases for state needs, 
state-designated trading, state goods distribution,  government-to-government agreements for the 
supply/purchase of products, and state mandated c ounter-trade and barter),  would be applied in 
conformity with WTO provisions, including GATT Article XVII, the Understanding on Article XVII 
and the Understanding on Article VIII of the GATS.  WT/ACC/SPEC/RUS/22 
 Page 13 
 
 
 Free Zones, Special Economic Areas 
84. More information was required to assess whether the existing free zone in Kaliningrad, or 
those provided for in additional legislation, might en tail WTO issues.  Issues raised in this connection 
questioned the basis on which goods manufactured in Kaliningrad were deemed to have transformed 
imported inputs sufficiently to eliminate the need  to pay the duties and taxes exempted when the 
inputs were imported, and what other benefits, if a ny, in terms of tax exemptions, were available to 
firms that locate there.  A description of the pr ovisions for firms located  in the Free Zones for 
Magadhan and Nakhodka was also requested.   
85. It was stressed that Russia should revise its dome stic laws and regulations to eliminate any 
measures in place in Russia’s free zones or other sp ecial economic areas that were not in conformity 
with WTO provisions upon accession, in particular  incentives tied to export requirements, other 
subsidies, and TRIMS, so as ensure enforcement of  its WTO obligations in those zones.  Russia was 
asked to consider the customar y commitment to apply normal customs formalities on goods from the 
zones sold elsewhere in Russia,  including the application of tariffs and taxes upon accession. 
Government Procurement 
86. Interest was expressed in a commitment from Ru ssia to become an observer to the GPA and 
to initiate negotiations for accession to the Ag reement on Government Procurement upon accession.  
Russia was also invited to include information on its  government procurement practices in its future 
documentation.  
87. Information was specifically requested on the status  of proposed new legislation in this area. 
In addition, information was also needed on the involvement of the Russian government in barter 
trade, noting the legal basis for this as well. 
Transit 
88. It was indicated a sufficient description of Russian provisions on transit  to confirm whether 
Russia’s policies for trade in transit were in conf ormity with the provisions of the WTO Agreement, 
in particular Article V of the GATT 1994, was still required. 
Agricultural Policies  
89. A comprehensive submission of Russia's agricultural support policies, with emphasis on 
"green box" measures that can achie ve Russia's reform objectives, was required in order to establish a 
detailed description of Russia's agricultural po licies on which appropriate commitments could be 
determined.  
Trade in Civil Aircraft  
90. It was noted that Russia had indicated a willingn ess to join the Agreement on Trade in Civil 
Aircraft Agreement.  A commitment was ther efore sought that this will occur upon accession. 
Trade Related Aspects of Intellectual Property Rights (TRIPS) 
91. It was stressed that this area constituted a ve ry important aspect of Russia’s WTO accession 
process.  The Russian authorities were invited to co ntinue their efforts to fully implement the TRIPS 
Agreement and apply it upon accession.   WT/ACC/SPEC/RUS/22 
Page 14  
 
 92. Noting that the Russian government had prepared  and introduced into the Duma legislation 
amending its copyright, trademark,  patent and other intellectual property laws, including laws for 
enforcement of rights, it was felt that the provision  of a clear timetable for the adoption of this 
legislation would considerably help the Working Pa rty proceedings in this regard.  It was further 
stressed that the Working Party should be kept informed of initiatives taken to reduce current high 
levels of piracy and counterfeiting. 
93. A commitment was sought that Russia would be  in compliance with the TRIPS Agreement 
upon accession, including with respect  to its enforcement provisions. 
POLICIES AFFECTING TRADE IN SERVICES 
94. More information was deemed useful on Ru ssia’s progress towards establishing the required 
inquiry point and other transparency and procedural requirements for GATS. 
TRANSPARENCY 
Publication of Information on Trade 
95. A description of the legal authorization to im plement Article X and the other transparency 
provisions in WTO Agreements was required toge ther with a confirmation that these provisions 
would be applied upon accession.  A clarification was particularly sought to specify where Russia’s 
laws, decrees, resolutions, orders, letters, etc. we re published to fulfill the requirements of Article X 
and the other transparency provisions in WTO Agreements. 
Notification 
96. A commitment was required concerning Russia’s initial notifications for all WTO 
Agreements, ideally upon accession, and that regulati ons subsequently enacted by Russia which gave 
effect to the laws enacted to implement any of  the WTO Agreements would also conform to the 
requirements of that Agreement. 
TRADE AGREEMENTS  
97. It was noted that it was customary to provide a detailed description of the scope, nature, and 
status of all preferential arrangements in the protocol  package.  This was requi red to ensure that the 
value of MFN commitments negotiated in the schedules would be known to all parties.  It was felt that 
the Russian Federation should consider how to im prove the information needed in this regard. 
98. A clarification was sought on how the Russian Federation intended to ensure compliance 
between its process of accession to the WTO and its commitments undertaken in the framework of the 
CIS Customs Union, notably with respect to the establishment of a common external tariff 
considering that a CIS country was already member of the WTO. 
99. A commitment was sought that Russia w ould observe Article XXIV of the GATT and 
Article V of the GATS in its participation in trade agreements, and would ensure that the provisions 
of these WTO Agreements for notification, consu ltation and other requirements concerning free trade 
areas and customs unions were met upon accession, and th at any subsequent legislation or regulations 
enacted or altered under these agreements would remain  consistent with the provisions of the WTO.  
More specifically, Russia should, upon accession, no tify its Free Trade Areas, Customs Union, and 
Economic Union Agreements for review by the Committee on Regional Trade Agreements (CRTA). 
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