RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/110/Add.2 
20 June 2003 
 (03-3338) 
Working Party on the 
Accession of Ukraine Original:   English 
 
  
ACCESSION OF UKRAINE 
 
Check-list of Issues
 
 
Addendum  
 
 
 The Governmental Commission on Ukraine's Accession to the WTO has submitted the 
following revised Check-list of Issu es with the request that it be circulated to members of the 
Working Party.  
_______________  WT/ACC/UKR/110/Add.2 
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 TABLE OF CONTENTS 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................3 
2. Economic Policies........................................................................................................... ...........3 
(a) Main directions of the ongoing economic policies..................................................................3 
(b) Monetary and fiscal policies............................................................................................... ....10 
(c) Foreign exchange and payments system ...............................................................................11 (d) Foreign and domestic investment policies ............................................................................12 
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................15 1. Import Regulation........................................................................................................... ........15 
(a) Registration requirements for engaging in importing.........................................................15 (b) Characteristics of national tariff ......................................................................................... ..17 
(d) Other duties and charges................................................................................................... .....18 
(e) Quantitative import restrictions........................................................................................... .24 
(f) Import licensing procedures ................................................................................................ ..26 
(h) Customs valuation.......................................................................................................... .........30 
(i) Other customs formalities .................................................................................................. ....37 
(j) Pre-shipment inspect ion .................................................................................................... .....37 
(l) Rules of origin ............................................................................................................ .............38 
(k) Application of internal taxes on imports...............................................................................40 
(m) Anti-dumping regime........................................................................................................ ......52 
(n) Countervailing duty regime ................................................................................................. ..52 
(o) Safeguard regime ........................................................................................................... .........52 
2. Export Regulation........................................................................................................... ........54 
(c) Quantitative export restrictions........................................................................................... ..55 
(d) Export licensing procedures................................................................................................ ...56 
(e) Export financing, subsidy and promotion policies...............................................................57 
3. Internal policies affecting foreign trade in goods.................................................................58 (a) Industrial policy, including subsidy policies........... ...................... ...................... ..................58 
(b) Technical regulations and standards ....................................................................................71 
(c) Sanitary and phytosanitary measures...................................................................................84 
(e) State-trading practices.................................................................................................... ........87 
(f) Free zones ................................................................................................................. ...............89 
(g) Free economic zones ........................................................................................................ .......89 
(l) Government procurement practices......................................................................................94 
(m) Regulation of trade in transit............................................................................................. ....94 WT/ACC/UKR/110/Add.2 
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 4. Policies affecting foreign trade in agricultural pr oducts.....................................................96 
(a) Imports.................................................................................................................... .................96 
(e) Internal policies.......................................................................................................... ...........102 
5. Policies affecting foreign trade in other sectors .................................................................105 
(b) Policies affecting foreign trade in other major sectors......................................................105 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME.....................................106 1. General..................................................................................................................... ..............106 
ANNEX 1 ........................................................................................................................ ....................109 
The List of Goods, the Prices (Tariffs) of which are Subject to State Regulation .......................109 
ANNEX 2 ........................................................................................................................ ....................113 
The List of Services, Prices (Tariffs) of which ar e Subject to State Regulation...........................113 
ANNEX 3 ........................................................................................................................ ....................120 
Methods to Calculate Retail Tariffs for Electric Energy Deliveries..............................................120 
ANNEX 4 ........................................................................................................................ ....................125 
Minimal Indicative Prices ...................................................................................................... ...........125 
ANNEX 5 ........................................................................................................................ ....................128 
Ukraine's Investment Regime.................................................................................................... .......128 
ANNEX 6 ........................................................................................................................ ....................133 
Activity Licenses and Licenses to Engage in the Import and Export of Certain Products.........133 
ANNEX 7 ........................................................................................................................ ....................143 
Port Fees ...................................................................................................................... .......................143 
ANNEX 8 ........................................................................................................................ ....................154 
Excise Taxes................................................................................................................... .....................154 
ANNEX 9 ........................................................................................................................ ....................160 
List of The Ship Building Enterprises Re ceiving the Benefit of The State Support 
Measures for the Ship Building Industry ...........................................................................160 
ANNEX 10 ....................................................................................................................... ...................162 
Domestic Support:  Ukraine Reporting Period:  Calendar years of 2000-2002 ...........................162 
ANNEX 11 ....................................................................................................................... ...................179 
Memorandum on the Protection of Intellectual Property Rights in Ukraine ..............................179 
ANNEX 12 ....................................................................................................................... ...................184 
The Application of the Free Trade Agreements..............................................................................184 
  WT/ACC/UKR/110/Add.2 
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 - Comments 
No. 1 
We are seeking clarification and confirmation of the factual basis of Ukraine's trade regime in 
the areas covered by WTO provision. In addition, we want to ensure that our concerns are 
accurately reflected, and to be advised as precisely as possible of Ukraine's actions to: 
- eliminate trade inhibiting and WTO-inconsistent measures identified in the course 
of these discussions to date; 
- create WTO -mandated institutions in the trade regime, e.g., enquiry points, prior 
publication of trade-related ru les, right of appeal, transparency in administrative 
rulings, methods of notification to the WTO, new procedures, and protections of 
traders rights; and 
- enact legislation establishing WTO rules as the point of reference for Ukraine's 
trade policy. 
Ukraine has already taken steps to address these points, in WT/ACC/UKR/110 and 
UKR/110/Add.1.  With this additional review an d clarification, and with the development of a 
consolidated text reflecting these elements, we can begin to focus on outstanding issues and 
move towards developing a draft Working Party report. 
Non-tariff measures also have a major impact on  the viability of market access commitments. It 
is therefore important in the context of developi ng Ukraine's market access schedules as well as 
protocol commitments that non-tariff measures inconsistent with the WTO be identified and 
removed. 
We reserve the right to raise additional issues, as developments in Ukraine's trade regime, and 
consequently the text of the draft report, evolve. 
No. 2 The response to items No. 1-3 refers to the authority of the State Customs Committee to waive 
non-tariff regulations or other restrictions for qu alifying business entities. This would appear to 
invite discriminatory application of trade regula tions. We would appreciate further explanation 
of why this authority has been granted, and e xamples of what non-tariff regulations would be 
waived. 
No. 3 
We support the accession of Ukraine to the WTO on the basis of appropriate commitments on 
market access and conformity with all WTO rules. 
We welcome and support the decision of the Working Party in February 2003 that elements of a 
draft Working Party Report be prepared. 
We welcome and support the program of intensified work for Ukraine's accession adopted in 
February 2003, including: 
- the holding of plurilateral sessions on SPS and TBT in March and April 2003; WT/ACC/UKR/110/Add.2 
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 - the preparations that will be undertaken for subsequent plurilateral sessions on the 
basis of an agenda agreed by Members and materials required by Members; 
- the holding of plurilateral sessions on agr iculture, TRIPS and other issues in the 
margins of the next meeting of the Working Party; 
- the preparation by Ukraine, well in advance of the next meeting of the Working 
Party, of an updated checklist of issues responding to Members comments, requests 
and questions, and of a comprehensive legislative action plan which will also 
describe all relevant legislation in place; and 
- the Chair's intention to consult with M embers on materials provided by Ukraine 
and on arrangements for the next meeting of the Working Party and for plurilateral 
sessions to take place the margins of that meeting. 
No. 4 We also look forward to the preparation by Ukraine of the following materials: 
- revised and updated SPS and TBT checklists in advance of the planned plurilateral 
sessions, incorporating recent legislative developments and plans in these areas; 
- responses in writing to the comments, que stions and requests of Members on SPS 
and TBT to be circulated to the membership in advance of the planned plurilateral 
sessions; 
- a revised and updated import licensing questionnaire to be circulated to the 
membership well in advance of the ne xt meeting of the Working Party; 
- agriculture domestic suppor t data in WT/ACC/4 format for the years 2000-2002 and 
information on support policies in advan ce of the next meeting of the Working 
Party, so that these new materials can be reviewed in detail in the plurilateral 
session on agriculture to be held in th e margins of the Working Party meeting; 
- electronic versions of English tran slations of enacted legislation. 
Answer:  
 Per a request from Members of the Working Party, Ukraine has prepared agricultural 
domestic support data for the period of 2000-2002 for information of the Working Group but Ukraine 
continues to negotiate for determining Ukraine's commitments regarding the level of agricultural 
support based on the period of 1994-1996 as a base period during the following plurilateral meeting of 
the Working Party on Agriculture.  
Appropriate state support is needed for purposes of stabilization and further development of 
Ukraine's agrarian sector.  This need results fr om objective particularities in the functioning of 
Ukrainian agriculture, lagging of domestic agricult ure in terms of technological levels of production, 
from a need to resolve problems specific for the Ukra inian agrarian sector that have accumulated over 
the years of crisis-ridden development.  Last years' experience shows that the agrarian sector is not 
able to resolve these problems without an increase of State support. 
In addition, results of market transformation in  the entire country depend, to a large extent, on 
the efficiency of agrarian reform, as 32 per cent of the Ukrainian population is concentrated in  WT/ACC/UKR/110/Add.2 
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 Ukraine's rural localities, 23 per cent  of the entire labour force is engaged in agriculture, 66 per cent 
of all lands in Ukraine are lands of agricultural en terprises and citizens, and the percentage share of 
agriculture in Gross Domestic Product constitutes 14 per cent (2001 р.).  In this respect, the level of 
support (AMS – 1994-1996) totals US$275 as calculated per one person employed in Ukraine's 
agriculture, while it is about US$1,000 in some c ountries that are WTO Members, the level of support 
per 1 ha of agricultural land in Ukraine totals onl y US$33, which is 5-6 times lower than in these 
countries. 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 2. Economic Policies (a) Main directions of the ongoing economic policies 
Item 1 
These sections address basic economic policies , with special emphasis on state ownership and 
privatization, price controls, foreign exchange measures, and foreign investment regime, as 
these issues may have an impact on Ukrain e's implementation of WTO provisions. The 
information provided should be concise a nd focus on issues that impact trade. 
Answer:
 
Ukraine has made every effort to meet these criteria. 
Item 2 
Ukraine has provided new information in relation to types of products and services subject to 
price regulation, but not a comple te description of the nature of such price regulations. We 
request Ukraine provide this information, setti ng out the following details in table form: 
- the tariff codes of the products subject to such regulation; 
- a description of the products; 
- information on the form of price regula tion applied, e.g., price caps, minimum 
prices, mark-up regulations, etc., including whether such regulation is internal or 
applies to only imported products; 
- the purpose of such price regulation; and 
- and the Ukrainian legal instruments used to apply such regulations. 
Answer:  
Pursuant to Article 23 of the Law of Ukraine "On Enterprises in Ukraine," No. 887-XII, dated 
23 March 1991, business agents shall sell their products and property on the domestic market 
according to prices and tariffs which they determine independently or on a contractual basis, and, in 
cases provided by legislative acts of Ukraine, acco rding to prices and tariffs subject to regulation. 
 The Law of Ukraine "On Prices and Pric ing," No. 507-XII, dated 5 December 1990, 
Resolutions of the Cabinet of Ministers of Ukrain e "On Establishment of Powers of the Executive 
Power Authorities and Executive Auth orities of City Councils Regarding Price (Tariff) Regulations," WT/ACC/UKR/110/Add.2 
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 No. 1548, dated 25 December 1996, and "On Rules on State Price (Tariff) Regulations for the 
Products of Production and Technical Designation, Consumer's Goods, Works and Services of 
Monopolistic Formations," No. 135, dated 22 Februa ry 1995, are the basis for state price regulations. 
 Pursuant to Article 9 of the Law of Ukraine "On Prices and Pricing," state fixed and regulated 
prices and tariffs shall be established on the following: 
- resources, which significantly influence the general level and dynamics of prices; 
- goods and services, which have significant social importance; and 
- products, goods and services, production of which is concentrated at enterprises that have 
monopolistic status on the market. 
 Price regulations are aimed at ensuring a balanc ed market for means of production, goods and 
services, creating necessary economic guarantees for producers, observing price parity between 
branches and types of business activity and counteracting monopolistic trends of producers of 
products, goods and services, as well as ensuring social guarantees, first of all, for low-paid and poor 
people. 
 Pursuant to the Constitution of Ukraine, author ity for state price policy lies within the Cabinet 
of Ministers of Ukraine. According to the Law of Ukraine "On Prices and Pricing," the Cabinet of 
Ministers of Ukraine shall determine the list of pro ducts, goods and services for which state fixed and 
regulated prices are established.  The Cabinet of Ministers of Ukraine shall also determine the powers 
of state authorities in the field of establishment and application of pr ices, as well as in relation to 
control over prices. 
 State regulation of prices and tariffs shall be effectuated in the following ways: 
- establishment of state fixed prices (tariffs); and 
- establishment of limit levels of price (tariff)  caps or limit deviation caps from state fixed 
prices and tariffs. 
 The Cabinet of Ministers of Ukraine (pursuant to its Resolution No. 1819, dated 
13 December 2000) entrusted the State Inspectorate on  Prices Control with functions regarding state 
control over prices.  The main tasks of Derzhtsinins pectsia (State Inspectorate on Prices Control) are 
the following: organizing and conducting control and surveillance functions as  regards observance of 
the requirements regarding formation,  establishment and application of the regulated prices and tariffs 
by central and local authorities of the executive power, Council of Minist ers of the Autonomous 
Republic of Crimea, enterprises, institutions an d organizations, as well as monitoring prices and 
tariffs of goods and services in consumer markets,  generalizing the results of such monitoring and 
preparing suggestions regarding application of measures for stabilization of price situation. 
 See Annex 1.  The List of Goods, the Prices (Tariffs) of which are Subject to State Regulation 
 See Annex 2. The List of Services, Prices (Tariffs) of which are Subject to State Regulation 
Item 3 
So far as certain internal price regulations are concerned, it is our expectation that Ukraine will 
commit to abide by the provisions of Article III:9 and X of GATT 1994 from the date of accession.  WT/ACC/UKR/110/Add.2 
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 Answer:  
Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 4 So far as any regulations applicable to the prices of imported or exported products are 
concerned, it is our expectation that all such regulations will be elimin ated by the date of 
accession and that Ukraine will commit to abide by  the provisions of Article XI:1 of GATT 1994 
and Article 4 of the Agriculture Agreement from the date of accession and to not revert to such 
measures after accession. 
Furthermore, there is no reference in the ta ble to the minimum internal prices that are 
maintained by Ukraine in the sugar sector, in part icular for refined sugar and sugar beets. It is 
our expectation that Ukraine will provide full transparency in relation to all internal price regulation of in the sugar sector, and amend th e table accordingly. Such minimum prices and 
the measures used to maintain them are internal regulations that  discriminate against imports 
of raw cane sugar and provide protection to domestic products, and are inconsistent with 
Article III:4 of GATT 1994. 
Answer:
 
Ukraine expects to deal fully with the questio ns of its commitments related to regulations 
applicable to the prices of imported or exported products in the context of preparation of the draft 
Report of the Working Party. 
Additionally, see Annex 1 and the Answer to Item 159. 
Item 5 Accordingly, it is our expectation that all mini mum prices maintained in the sugar sector and 
the measures used to maintain them will be el iminated by the date of accession, and that 
Ukraine will commit to abide by the provisions of Article III:4 of GATT 1994 and to not revert 
to such minimum price regulations after acce ssion. We request Ukraine to give such a 
commitment. 
Answer:
 
Ukraine is cognizant of the obligations of WTO me mbership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
- State Ownership and Privatization Item 6 
The chart in item No. 6 indicates that output of enterprises with a share of state ownership in 
2001 was 73.1 billion UAH, about half of which is  accounted for by extractive and processing 
industries, production of electricity, gas, and wat er.  The response to item No. 8 states that the 
industrial output of privatized firms in 2002  was 20.3 billion UAH, about 52 per cent of total 
production.  It goes on to state that privatized firms account for about half of the output of the 
food industry, processing of agricultural produc ts, textile and clothes production, chemical and 
electrical and electronic equipment industries. WT/ACC/UKR/110/Add.2 
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 For the factual summary, we would appreciate a clearer sense of what part of these sectors 
remain partially or wholly state-owned, and what portion of Ukraine's output and trade 
accounted for by such enterprises. 
Answer:
 
According to the data of the State Statistics Co mmittee of Ukraine the output of industrial 
enterprises that changed their ownership form wa s UAH66.6 million as of 1 October 2002, which is 
53.9 per cent of the total output. 
The number of joint-stock companies set up on the basis of state enterprises and the share of 
private capital in total capital may be seen in the following table. 
Table 1  
Number of enterprises (as of 1 April 2003) 
Percentage of private capital in total capital Industry Total 
up to 25% 25% to 50% 50% to 75% 75% to 100%
Power engineering  34 8 10 7 9 
Fuel industry 13 4 1 2 6 
Ferrous metallurgy 96 8 5 7 76 
Chemical and petrochemical 108 14 7 9 78 
Machine building and metal 
processing 1,254 91 61 114 988 
Woodwork, and pulp and paper 
industry 171 9 2 5 155 
Light industry  221  13 3 9 196 
Food industry  842 65 6 46 725 
Transport  909 57 5 128 719 
Construction  78 7   71 
Other industries  4,526 377 67 420 3,662 
Total:  8,252 653 167  747  6,685  
 
Item 7 Typically, information is provided for this sectio n on progress of privatization by sectors since 
initiation of privatization program, indicating  the portion of enterprises privatized, in the 
process of privatization,  and still state-owned. 
We also seek information on the scope and future of Ukraine's privatization efforts and more 
information on nature and size of those parts of the economy that will not be privatized. 
Answer:
 
More than 85,000 enterprises have been privatized  over the years of privatization.  More than 
61,000 entities have been transferred into the collec tive form of ownership, and almost 24,000 private 
enterprises have been formed.  WT/ACC/UKR/110/Add.2 
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  By types of economic activity, the privatization process has covered principally wholesale 
and retail trading businesses, including businesses engaged in sales of motor vehicles and motor 
vehicle repair services; rendering of collective, public and personal services; industrial sectors. 
Altogether, more than 68,000 entities were privatized during 1992-2002, in particular: 
integrated property complexe s of state-owned and leasing enterprises and structural  divisions of  
enterprises spun off into independent enterprises, as well as hotels, sanatorium and resort facilities and 
recreation homes etc. 
Privatizations of 179 large state-owned enterpri ses with capital assets valued at more than 
UAH 170 million have begun over the past ten years.  Not less than 40 per cent of the shares in 132 
companies have been sold. 
As of the beginning of 2003, more than 11.5 thousand medium- and large-size enterprises were 
privatized with depth of not less than 70 per cent, among which almost 47 per cent constitute 
industrial enterprises. 
In the industrial sector, enterprises, which changed their form of ownership, produced 
UAH66.6 billion worth of output as 1 October 2002, which constitutes 53.9 per cent of the total 
volume of output. 
Table 2  
Plans for the Future - Privatization of Enterprises in 2003  
Sectors of the economy  Number of enterprises 
whose controlling or 
blocking packages of 
shares are planned for 
sale on the stock market 
and at auctions  Balance sheet value of 
capital assets, million 
UAH Number of employees, 
persons  
Oil and gas complex  4 45.94 29,675 
Energy sector  3 167.10 10,985 
Agriculture  32 329.76 6,662 
Metallurgy  9 3,373.11 70,255 
Machine building and metal-working  49 154,139 96,601 
Aircraft industry  1 20.84 854 
Shipbuilding industry 2 6.22 6,167 
Sector of communications devices  4 392.54 4,213 
Chemical industry 6 1,947.94 11,510 
Petrochemical industry 3 73.86 6,002 
Transport  27 203.86 6,015 
 
Item 8 
For the protocol package, we seek a commitment to report on developments in its program of 
privatization as long as the privatization progra m would be in existence and provide reports on 
other issues related to its economic reforms as relevant to its obligations under the WTO while 
Ukraine is still in the process of reforming its economy. WT/ACC/UKR/110/Add.2 
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 Answer:
 
Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
- Pricing Policies  
Item 9 
We appreciate the information provided in response to item No.7. It reports on the legal basis 
and scope of state price controls applied at the federal level: 
Is the chart comprehensive? For example, are there any sort of price controls on alcoholic or 
tobacco products? 
Answer:  
See the answer to Item 2 and Annex 1. 
 The Law of Ukraine, dated 19 December 19 95, under No. 481/95-VR, "On State Regulation 
of Production and Circulation of Ethyl, Cognac and Fruit Alcohol, Alcoholic and Tobacco Products" 
and Resolution No. 700, dated 21 June 2001, "On Introduction of Minimum Prices for Domestic and 
Imported Vodka and Alcoholic Products" approved  amounts of minimum prices for domestic and 
imported vodka and alcoholic products that are sold  in Ukraine by wholesale and retail enterprises, 
public catering establishments, producers, irresp ective of their ownership forms, and by natural 
persons who are registered as entrepreneurs. 
 Procedures for setting of minimum prices for domestic and imported vodka and alcoholic 
products are governed by Order No. 371/168/239 of the Ministry of Finances, the Ministry of 
Economy and the Ministry of Agrarian Policy, dated 8 August 2001, "On Approval of Procedures for 
Setting and Application of Prices for Domestic and Imported Vodka and Alcoholic Products". 
Item 10 
Please clarify whether in settin g "tariffs for international and domestic railway transportation" 
Ukraine sets different tariffs for domestic and foreign trade? 
Answer:  
 Effective tariffs are equal for carriage of domestic and foreign trade cargoes.  They apply to 
all lines of the general railway netw ork in Ukraine for all cargo forwarders and recipients.  Tariff rates 
depend on distance, type of carriage, cargo weight and a type of railway car. 
Item 11 Are any price controls applied at the sub-central level? 
Answer:
 
The list of products, goods and services, prices for which are subject to control at the sub-
central level is approved by Resolution No. 1548 of the Cabinet of Ministers of Ukraine, dated 
25 December 1996, "On the Determ ination of Price Regulation Powers of Agencies of Executive 
Power and Executive Bodies of City Councils" (See the response to Item 2).  WT/ACC/UKR/110/Add.2 
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 Territorial offices of the State Price Control Insp ectorate – State Price Control Inspectorates in 
the Autonomous Crimean Republic, oblasts, Kyiv  and Sevastopol – control compliance with 
procedures for formation, setting and applic ation of state fixed and regulated prices  in regions. 
Item 12 Concerning Ukraine's price controls on energy and energy distribution: 
Do any of these controls provide for different prices applied to specific domestic consumers, e.g., 
specific industries or firms, or for sales abro ad in comparison with domestic consumption? 
Answer:
 
 Energy distribution companies shall determine retail prices on electricity for consumers 
(except for the general population) in accordance with the Terms and Rules for Effectuation of Entrepreneurial Activity on Distribution of Electricity under the Regulated Tariff, approved by the Resolution of the National Commission for Regula tion of Electricity of Ukraine, No. 15/1, dated 
13 June 1996.  These tariffs are unified for all consumers of the appropriate class of voltage within the 
territory of the relevant energy distribution company.   It depends on the level of the wholesale price of 
energy sold to the Wholesale Market of Energy of Ukraine, as well as costs of energy distributors for 
transportation of energy to consumers. 
 Formation of wholesale tariffs for electric energy is realized in the wholesale market of 
electric energy of Ukraine on a contractual basis.  Consumer prices for electric energy are set by 
suppliers of electric power accord ing to conditions and rules of accomplishment of entrepreneur 
activity on supplies of electric power  which are established by the NCPI. 
Apart from this, the NCPI defines the market procedure for computing the retail tariff for 
electric power, the level of which is determined on the basis of the average predicted purchasing price 
of electric power for the settlement month, corrected  by the coefficient of technological losses of 
electric power and tariffs for transmitting and supplying of electric power.  In addition, the average 
predicted purchase price is determined by each operator of the electric power market (licensee) on the 
basis of actual and predicted prices for previous periods of time.  This allows to operatively react to 
changes in market prices.  The coefficient of technological losses of electric power takes into account 
normative technological expenses, and tariffs fo r supplies and transmitting of electric power are 
established according to actually incurred expenses by the operator of the electric power market of 
Ukraine (licensee). 
Thus, the state, with the purpose of preventing monopolization and unwarranted 
overestimation of prices in the market of electric  power, regulates operation of the electric power 
market using market mechanisms to attain it. 
 The method and an example of the retail tariff computation is given in Annex 3. 
Concerning state regulation of the power industry, please see the Answer to Item 2. 
Item 13 
In earlier documentation, Ukraine indicated that reference prices had been "set on 
3 March 2000 for the following products: tubes,  armature, ferrosilicium, ammonia, cattle, wet 
salted leather, sunflower seeds, flax seeds, certain other products".  These are not listed in the 
chart in item No. 7 of WT/ACC/UKR/110 . Are these controls  still in effect? WT/ACC/UKR/110/Add.2 
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 Answer:
 
 For the time being, indicative prices for the export of the following products are being set on 
a monthly basis: reinforcement rods, square billets, hot roll, stitch-free pipe s of non-ferrous metals, 
ferrosilicon manganese, carbamide, ammonia, live ca ttle, live rams and sheep, skins and hides of 
cattle wet-salted and otherwise conserved, sheep's skins wet-salted, linseeds,  sunflower seeds, seeds 
of red flax, and electric power. 
 The indicative prices are set by the Ministry of Economics and for European Integration of 
Ukraine upon the submission of the State Information and Analytical Center for External Commodity 
Markets Monitoring (Derzhzovnishinf orm) based on the results of re view of information received 
from customs, financial, statistical state authoritie s, banking, information and other institutions of 
Ukraine and from other sources (global commodity ex changes data).  Indicative prices for the Month 
of May 2003 are presented in Annex 4. 
 Indicative prices serve as benchmarks for business entities entering in sale-purchase 
agreements wherefore they were not included in Item 7. 
Item 14 
We seek a commitment that in the application of its price controls Ukraine will apply such 
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. 
We also seek confirmation that Ukraine publishe s notices of the goods and services subject to 
state price controls and will continue to do so after accession. 
Answer:  
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
 (b) Monetary and fiscal policies  
Item 15 This section should outline the guiding principles of Ukraine's monetary policy and Central 
Bank operations. 
Answer:
 
The main efforts of the National Bank of Ukra ine are centered on the fulfillment of the 
principal mission assigned to it under the Constitutio n of Ukraine (Article 99)  and the Law of Ukraine 
On the National Bank of Ukraine No.XIV of 20 May 1999 requiring the Bank to ensure domestic 
currency stability. A stable monetary unit minimizes  macroeconomic risk and promotes the growth of 
external lending and of investment activity.  It thus provides a basis for sustainable economic growth and improvement in the quality of life which is fu lly commensurate with the key objectives of 
economic and social policy pursued by the Government of Ukraine. 
As a manifestation of Ukraine's commitment to  openness and transparency of its economy, 
the criteria for the assessment of  national monetary and credit polic y are provided by domestic price 
indices and currency exchange rates, whereas the cr iterion for operational objectives is the monetary 
base indicator.  WT/ACC/UKR/110/Add.2 
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 The demand for cash is met by expanding the money supply by conducting operations in the 
currency market and increasing bank refinancing, and through creation of preconditions for money 
multiplication through monetary measures (decr easing reserve requirements and lowering of the 
discount rate). 
New bank refinancing instruments have been introduced to include weekly short-term and 
medium-term tenders of various sorts, daily extension of overnight credits to banks via continuously 
operating refinancing line which has enabled banks to address the National Bank of Ukraine as the 
lender of last resort to sustain their liquidity.  The banks currently are able to obtain credits without 
collateral in unlimited amount. Seeking to stimulat e lending to the economy's productive sector, the 
National Bank has expanded the list of types of colla teral accepted for the security of the National 
Bank's loans which allows bank to choose the most appropriate options for ensuring effective 
management of their assets. 
Measures used by the National Bank to support economic growth are aimed at: 
- Increasing the banks' resource base; 
- Improving the structure of ba nks' assets and liabilities; 
- Increasing lending amounts; 
- Promoting banks' investment commitments; 
- Lowering the cost of credit; and 
- Promoting the development of the stock market. 
Policy priorities in the foreign exchange segment of the market include the retention of the 
nominal exchange rate within the limits of its  gradual devaluation and suppression of large 
fluctuations with adequate response to an expected global economy recession. 
Effective as of February of 2000, a floating rate regime has been put in place in Ukraine. 
Against this background exchange rate stability is sustained due to interventions of the National Bank 
of Ukraine and purchases of the surplus supply of foreign currency which allows to concurrently 
enlarge the National Bank's  international reserves.. 
In the past three years, the currency and exchan ge rate policy has had positive macroeconomic 
effects that have had a stabilizing impact on mo netary and credit markets and promoted the nation's 
economic development due to the following factors: 
- stability of the nominal exchange rate: the nominal devaluation of the hryvnia against the 
US dollar: equaled 2.2 per cent; 
- positive dynamics of the real effective ex change rate, the decline of which was 
4.1 per cent; 
- increase in the amounts of international currency reserves of the National Bank of 
Ukraine which grew fourfold over the last three years reaching a level enabling goods and 
services import financing for a period of 2.5 months. 
(c) Foreign exchange and payments system  
Item 16 Ukraine should outline its restriction on fore ign exchange acquisition and retention, and any 
measures, such as fees or required deposits, that are applied to obtain foreign exchange.  Please 
include any information on whether these measures are approved by the International 
Monetary Fund. WT/ACC/UKR/110/Add.2 
Page 12  
 
 Answer:
 
On 24 September 1996, Ukraine announced the assumption of commitments under Article VIII 
of the IMF Charter that implied introduction of hr yvnia convertibility for current account operations 
and non-application of restrictions to payments an d money transfers under current account operations. 
Presently, currency regulation standards and provi sions meet requirements of Article VIII of 
the IMF Charter which is confirmed by the Fund experts. 
Residents of Ukraine  have the right to purchase foreign exchange for hryvnias at the 
interbank currency market. For purchasing a Group 1 currency as per Classificator of the National 
Bank and its transfer abroad for the purposes of pa yment of imports, residents of Ukraine are required 
to file relevant foreign economic contracts with an  authorized bank. Under Article 3 of the Law of 
Ukraine On Procedure of Payments in Foreign Currency No. 185/94 of 23 September 1994 (as 
amended), the purchased foreign currency must be  remitted by a resident in pursuance of its 
obligations to a non-resident within five business days following the date of such amount entering into 
the currency account of the resident in question. 
All permanent representative office s of non-resident legal entities  partially engaged in 
business activities in Ukraine, have the right for the unimpeded purchase at the interbank currency 
market of Ukraine of foreign exchange from th eir own hryvnia current accounts for the purposes of 
said foreign exchange transfer to  accounts of the legal entity wh ose interests such organizations 
represent in Ukraine. 
Resident natural persons  may purchase foreign exchange in cash and enter same onto their 
accounts without any restrictions. 
Non-resident natural persons may purchase foreign exchange in cash to the extent that the 
amount of such purchased currency does not exceed  the amount previously imported into the country 
and declared at the time of such importation. In  addition to that, non-resi dent natural persons may 
purchase foreign exchange for hryvnias from thei r current accounts for the purposes of transfers 
abroad against the presentation of documents attesting to the origin of the hryvnias in question. 
The purchase of foreign exchange for the performance by residents of capital account 
operations  is allowed at the interbank currency market of Ukraine exclusively against specific 
commitments residents have to non-residents. 
 Foreign exchange may not be purchased for the purpose of repaying debts owed by non-
residents. Repayment by a resident of a non-resident s' debt may be effected through the resident's own 
foreign exchange balances. The payment by a resident of such obligations is allowed at the expense of own funds in foreign currency. 
(d) Foreign and domestic investment policies Item 17 There is no information in the checklist on in vestment, but Ukraine has previously provided 
description in other documentation.  In the fact ual summary, Ukraine's investment regime, with 
legal citations, should be described, with reference to any trade-related provisions or broad limitations on foreign investment.  WT/ACC/UKR/110/Add.2 
 Page 13 
 
 
 Answer:  
 The investment regime is described in detail in Annex 5. 
Item 18 
In its response to No. 13, Ukraine lists a number of charges related to customs clearance 
(expressed as a percentage of the value of good s) that are inconsistent with Article VIII of 
GATT 1994.  In addition, the fee of US$1,000 for customs clearance would appear to be excessive compared to the likely cost of providing such a service. We seek information on the 
steps Ukraine will take to make these fees fully WTO consistent prior to the date of accession. 
Answer:
 
 Pursuant to the new Customs Code adopted by the Supreme Rada of Ukraine on 11 July 2002, 
which will enter into force as of 1 January 2004, char ging of customs fees is not anticipated, except 
for fees charged for customs clearance if such clearance is carried out outside of customs authorities' 
premises or after working hours set for customs au thorities.   Please see the answer to Item 41. 
Item 19 Can Ukraine confirm that port fees apply to exported goods, and that the fees applied to 
imported goods are charged at levels that a re no higher than those imposed on exports? 
Answer:
 
The following special-purpose fees are charged at Ukrainian sea ports: ship fees, berthage fees, 
anchor fees, canal fees, lighthouse fees, cargo fees, administrative fees and sanitary fees. 
Pursuant to Resolution No. 1544 of the Cabinet of Ministers of Ukraine dated 12 October 2000, 
"On Port Fees", ship fees have two rates: ordinary and privileged. 
Ship fees under privileged rates are charged u pon vessels that carry flags of those countries 
with which Ukraine has entered into internationa l treaties and agreements for the grant of Most 
Favored and National Treatment to their vessels.  The fees do not depend on whether the cargo being 
carried is imports or exports. Please see Annex 7. 
Item 20 
Ukraine also notes a fee for customs clearance of goods in case of their transit. We seek a more 
detailed explanation of the actual services rendered in the case of goods in transit in order to 
assess compliance with Article V:3 of GATT 1994.  This paragraph states that traffic in transit 
shall be exempt from all transit duties or othe r changes except those relating to transportation 
or those commensurate with administrative expens es entailed by transit or with the cost of 
services rendered. 
It is our expectation that all customs fees an d charges will be applied by Ukraine in full 
conformity with the provisions of Articles I, V, VIII, X and XI of GATT 1994 after accession 
and all relevant provisions in other WTO agreements relating to fees and charges. WT/ACC/UKR/110/Add.2 
Page 14  
 
 Answer:
 
 Ukraine is cognizant of the obligations of WTO membership. It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
 See the response to Item 21. 
Item 21 
We welcome Ukraine's statement that the term "u nified fee" does not imply the same level of 
fee in every case.  However, the table provided in Ukraine's answer to Item 14 (page 32) does 
not support this statement.  In particular, it prov ides a list of Unified Rate Fees based on type of 
motor vehicle. It appears to indicate a fixed fee for "performance of control" based only on 
vehicle capacity, and does not differentiate the si ze of the fee according to the types of control 
measures required.  We seek further informa tion from Ukraine on how these fees differ 
according to types of control measures applied. 
Answer:  
The unified fee is charged on motor vehicles that  cross the State border for performance at entry 
points of customs (in case of transit), sanitary, veterinary, phytosanitary, radiological and 
environmental control of cargo and motor vehicles, and for passage by motor vehicles of highways. 
The amount of the fee is not differentiated on the basis of the number of types of control that are 
applied to a particular type of products. Fee amounts depend only on the type of motor vehicle that is 
subject to control rather than on the type of cargo such vehicle carries. 
Fee rates for performance of control are rather  insignificant and range from EURO 2 to 10. 
Two-three types of control are applied to the most  part of goods at the time such goods cross 
through Ukraine's customs border.  In this respect, rates of the unified fee do not exceed average costs 
concerned with the performance of two types of contro l.  Such an approach to determining the level of 
the unified fee simplifies the border crossing procedure. 
Application of the unified fee has resulted in a decrease by one half of fee amounts that have 
been charged in the course of performance of control procedures at the border 
Item 22 Ukraine also applies the so-called "unified fee"  to goods in transit. In order to assess the 
appropriateness of this policy, we seek further information from Ukraine on what services or 
administrative expenses are entailed in handling tr ansit goods.  In particular, are the full range 
of controls (customs, sanitary, phytosanitary et al) applied to goods destined for Ukraine's 
market also applied equally to goods in transit through Ukraine? 
Answer:
 
 The same range of controls, regardless of whet her goods are destined for the customs territory 
of Ukraine or are in transit, shall apply to identi cal goods.  The fee amount shall correspond to the 
cost of services rendered.  For details on the unified fee please see the Answer to Item 21 and 
WT/ACC/UKR/100.  WT/ACC/UKR/110/Add.2 
 Page 15 
 
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
1. Import Regulation 
(a) Registration requirements for engaging in importing Item 23 
We appreciate the information provided in respon se to item No. 9, but we think that the 
information in this section of the factual summary should focus on registration requirements for trade as well as activity licensing. 
Answer:
 
 Requirements for licensing of business activ ity types are set out in Addenda 1 and 2 of 
document WT/ACC/UKR/110/Add 1. 
 Requirements for licensing of certain types of bu siness activity related to trade are set out in 
Annex 6. 
 See also the response to Items 26. 
Item 24 
WT/ACC/UKR/91 states that Ukraine's registration  system may be simplified, e.g., by enacting 
a single state registration for economic ac tivity. Has that been done? Are there special 
requirements to register to conduct international trade? 
Answer:  
 On 15 May 2003, the Supreme Rada of Ukraine passed the Law of Ukraine On State 
Registration of Legal Entities and Natural Persons Engaged in Entrepreneurial Activity now pending 
the signature of the President of Ukraine.  Th is Law, which is being submitted to the WTO 
Secretariat, provides for the state registration of business entities exclusively by the State Registrar – 
an official responsible for the registration of  legal entities and natura l persons engaged in 
entrepreneurship exclusively at the executive committ ee of the city council or with district authorities 
having jurisdiction over the location of the natura l person-entrepreneur.  Registration is accompanied 
by entering the due record of registration into  the Single Registry of Legal Entities and Natural 
Persons Entrepreneurs. 
 In accordance with the law, legal entity regist ration must be effected within three working 
days (for a natural person-entrepreneur – two days) from the date of receipt of documents requesting 
the state registration of a legal entity.  A certif icate of state registration of a natural person-
entrepreneur must be issued not later than on the working day following the state registration date. 
 The above mentioned law shall enter into effect as of 1 July 2004.  No special conditions for registration of a subject of foreign economic activity apply in 
Ukraine. 
Item 25 
Must firms or individuals invest in Ukraine to be the importer or exporter of record? WT/ACC/UKR/110/Add.2 
Page 16  
 
 Answer:
 
 There is no requirement in Ukraine that a firm or individual should have invested in order to 
be the importer or exporter of record. 
Item 26 Information on activity licensing should focus on  licenses required to import or to export, or 
that include provisions for those activities, e.g. , optical media disks, trade in precious metals and 
stones and scrap thereof, trade in medicines and narcotics, trade in tobacco and alcoholic 
beverages, and trade in pesticides and fertilizers. For each such product, please describe the 
steps that must be taken to import and to export. 
For any such activities identified, information sh ould be provided on pr ocedures for obtaining a 
license and any subsequent requirements. 
Special attention should be given to how the fee structure for registration for an import license 
relates to GATT Articles VIII, XI and XIII. 
One area of special interest is trade in pharmac euticals. The response to item No. 10 states that 
the registration fee for imported and domestic pharmaceuticals is "determined with regard to 
the type of product and its origin." 
How is the origin of the product relevant to its registration? 
Answer:
 
For a detailed answer to the question please see Annex 6. 
Item 27 Please explain precisely how Ukraine will change it s current system of tariffs for operations in 
the pharmaceutical market to bring it into conformity with Article VIII. 
Answer:
 
 In accordance with Article 9 of the Law of Ukraine "On Medical Products", the procedure for 
state registration of medical products shall be esta blished by the Cabinet of Ministers of Ukraine. 
The Resolution of the Cabinet of Ministers of Ukraine dated 13 September 2000 No. 1422 
"On Approval of the Procedure for State Registratio n (Re-Registration) of Medical Products and of 
the Rates of Fee for State Registration (Re-Registrati on) of a Medical Product" fixed uniform fees for 
state registration (re-registration) of medical do mestic and foreign medical products. The amount of 
fee depends on the type of product and irrespective of the country of origin. 
In accordance with the indicated Resolution of the Cabinet of Ministers of Ukraine, the Order 
of the Ministry of Health of Ukraine of 19 Se ptember 2000 No. 220 "On Approval of the Procedure 
for the Conduct of Expert Assessment of Material s Submitted for State Regist ration (Re-Registration) 
of Medical Products", as well as Materials Submitt ed for Introduction of Changes in Registration 
Documents during the Term of Validity of Registratio n Certificates registered with the Ministry of 
Justice of Ukraine on 5 October 2000 and attributed No. 685/4906, determines a uniform procedure 
for the conduct of expert assessment of registration materials for medical products and for registration 
thereof irrespective of the country of origin.  WT/ACC/UKR/110/Add.2 
 Page 17 
 
 
 As regards ceiling tariffs for the conduct of specialized and expert assessment of materials 
submitted for state registration (re-registration) of me dical products fixed in th e Order of the Ministry 
of Health of Ukraine of 17 March 2000 No. 55, such  tariffs are uniform, as well, for all entities in the 
market of pharmaceuticals. These tariffs have been adjusted in conformity with the requirements of 
Article V ІІІ of GATT and approved by the Order of the Ministry of Health of 14 June 2001 No. 228 
"On Amendments and Additions to Ceiling Tariff s for the Conduct of Specialized and Expert 
Assessment of Materials Submitted for State Regist ration (Re-Registration) of  Medical Products" at 
the State Scientific Expertise Center  of Medical Products of the Minist ry of Health registered with the 
Ministry of Justice of Ukraine on 21 June 2001 and attributed No. 4-28-1671. The amount of such 
tariffs depends on the type of product subject to registration irrespective of the country of origin. 
Item 28 Typically, a commitment is taken that laws and regulations relating to the right to trade in 
goods and all fees, charges or taxes levied on such rights would be in full conformity with its 
WTO obligations, including Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that 
the relevant laws and regulations would be applied in full conformity with these obligations. 
Answer:
 
 Ukraine is cognizant of the obligations of WTO membership. It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
(b) Characteristics of national tariff 
Item 29 
Item No. 11 describes Ukraine's system of state du ties. We seek information on any of these that 
are applied to international trade operations. 
For example, point 2 lists state duties applied for the filing of lawsuits with economic 
(commercial jurisdiction) courts. Does this includ e appeals from administrative decisions, e.g., 
as provided for in Article X of the GATT and various other Agreements on Goods? Some of the 
state duties appear to be applied on an ad valorem  basis. 
Answer:  
 State duties do not apply to foreign economic operations. 
 Pursuant to Item 2 in Article 2 of Decree No. 7-93 of the Cabinet of Ministers of Ukraine, 
dated 21 January 1993, "On State Duties", state duties  applied for the filing with commercial courts of 
lawsuits and creditors' claims in bankruptcy are proceedings, the filing of appeals and pleas of 
cassation against, and for the filing of petitions for the review of decisions and orders under newly 
discovered circumstances. 
 Pursuant to Sub-item d), Item 2 in Article 3 of the above referenced Decree, state duties shall 
be charged for the filing of appeals and pleas of cassation against decisions and orders, and for the 
filing of petitions for the review of such decision s and orders under newly discovered circumstances 
in the amount of 50 per cent of a rate that is to be paid if a lawsuit is filed with a court of first instance 
(UAH 42.5), and with respect to disputes involving property – 50 per cent of the rate calculated 
proceeding from the amount in dispute (0.5 per cent of the price of a claim, but not less than 
UAH 25.5 and not more than UAH 850). WT/ACC/UKR/110/Add.2 
Page 18  
 
 Item 30 
Point 6 (w) describes state duties applied for the issuance of documents (patents and certificates) 
for intellectual property, where the duty ap plied varies between domestic and foreign 
individuals and firms. How is this consistent with the national treatment requirement in the 
TRIPS Agreement? 
Answer:
 
 Existing inconsistencies with the provisions of  the TRIPS Agreement will be eliminated by 
way of appropriate amendments to the laws. 
Item 31 Item No. 12 discusses import surcharges. Antidum ping and CVD applications are authorized by 
the Law on Single Customs Tariff, and subject to specific laws.  The special duties, however, are 
not explained.  Are these seasonal duties, safe guards, or for balance of payments purposes? 
The nature of these duties should be explained and assurances given as to their application in 
conformity with WTO provisions. 
Answer:
 
 Application of safeguard measures (in the Ukra inian language "special measures") is provided 
for in Article 12 of the Law of Ukraine "On Single  Customs Tariff" No. 2097-XII of 5 February 1992 
(with changes and amendments) and Article 29 of the Law of Ukraine "On Foreign Economic 
Activity" No. 959-XII of 16 April 1991.  The safe guard measure shall be applied as a means of 
protection, particularly in the event products are imported into the customs territory of Ukraine in 
volumes and/or under the conditions  that cause considerable damage or pose the threat of causing 
considerable damage to the national producer. 
 The procedure of application of the safeguard  measure shall be determined by the Law of 
Ukraine "On Application of Special Measures to Imports in Ukraine" No. 332-XIV of 
22 December 1998.  This Law regulates fundament als and the procedure of initiating and conducting 
special investigations of facts of growing imports into Ukraine from other states, customs unions or economic groups, which cause considerable damage or pose a threat of considerable damage to the national producer, by the results of wh ich safeguard measures may be applied. 
(d) Other duties and charges  
Item 32 
"Other duties and charges" not related to the cost of a specific customs or other service are 
governed by the provisions of Article II:1(b) of the GATT and the Understanding.  We seek 
Ukraine's commitment that it will eliminate upon ac cession that any such charges, i.e., any that 
are not tariffs, domestic taxes applied to imports, or fees applied for services rendered, will be 
eliminated prior to accession and that they will be bound at "zero" in the tariff schedule. 
Answer:
 
Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party.  WT/ACC/UKR/110/Add.2 
 Page 19 
 
 
 Item 33 
Point 13:  We note that there is an ad valorem component for customs clearance fees for goods 
with a value of more than US$1,000 and welc ome Ukraine's explanation during the Working 
Party meeting that WTO compliance will be achi eved once the new Customs Code has entered 
into force.  Confirmation would be appreciated. 
Answer:  
Please see the Answer to Item 41. 
Item 34 
Point 16: The information provided so far is no t sufficient to establish the WTO compliance of 
the single customs fee, and our concerns re main.  We welcome Ukraine's intentions, as 
expressed during the Working Party meeting, to provide further explanation and justification. 
Answer:  
Please see the Answers to Items 21, 39 and 41. 
- Fees and charges for services rendered 
Item 35 Item No. 13 addresses customs fees, consular fees, port fees, etc., i.e., those applied to pay for a 
specific services. The extensive description of customs fees is confusing, as it appears that such 
fees are no longer applied to imports unless clearance takes place off-location or after regular 
hours. 
Please confirm or clarify the conditions under wh ich the customs fees covered by Cabinet of 
Ministers Resolution No. 65 of 27 January 1997 would be applied after 1 January 2003. 
Answer:
 
Please see the Answer to Item 41. 
Item 36 
Concerning consular fees, are any of these fees charged for the authentication of import or 
export documents? Are any charged in the context of trade in goods? 
Answer:  
 Pursuant to the Regulation "On Consular Fees  in Ukraine", as approved by Order No. 217of 
the Ministry of Foreign Affairs, dated 15 December  1999, a consular fee is a monetary fee that is 
charged of natural persons and le gal entities by Ukrainian diploma tic representative offices and 
consulates abroad, the Consular Department of the Ministry of Foreign Affairs of Ukraine and 
representative officers of the Ministry of Foreign Affairs of Ukraine within Ukrainian territory for 
accomplishment of consular actions. 
 Pursuant to Article 54 of the Consular Charter of Ukraine, approved by Decree No. 127/94 of 
the President of Ukraine, dated 2 April 1994, the Consul shall legalize documents and instruments WT/ACC/UKR/110/Add.2 
Page 20  
 
 drawn up with participation of or issued by consul ar circuit authorities. Consular legalization shall 
mean the determination and certif ication of genuineness of signatures on such documents and 
instruments and their compliance with th e laws of the given foreign country. 
 Export and import documents are not subject to consular legalization. Hence, there are no 
consular fees that are charged for the authentication of import or export documents, nor are there any 
consular fees in the context of trade in goods. 
Item 37 
Item No. 14 extensively describes the application of customs fees that, to some extent appear to 
have been abolished and item No. 16 provides fu rther clarification on the application of the 
"unified fee". Item No. 17 addresses fee for customs clearance on importation of oil products. 
Answer:
 
 Ukraine continues to charge the unified fee described in Item No. 14.  An additional customs 
fee charged for customs clearance of oil products wi ll be automatically abolished upon the entry into 
force of the new Customs Code on 1 January 2004.  Please also see the Answer to Item 41. 
Item 38 
Please clarify the status of the fees described in item No. 14 in light of the provisions of the new 
customs code and the July 2001 amendments to the Law on the Unified Fee. 
Answer:  
Please see the Answer to Item 41. 
Item 39 Please confirm or clarify that the Unified Fee can vary depending on the cargo being carried by 
the vehicles subject to the tax, i.e., if they contain goods subject to import licensing or 
mandatory certification, other fees will apply. Pr ovide an example of two identical vehicles with 
different cargoes and the way the fee would be applied. 
Answer:
 
 The unified fee is charged on motor vehicles that cross the State border for performance at 
entry points of customs (in case of transit), san itary, veterinary, phytosanitary, radiological and 
environmental control of cargo and motor vehicles, and for passage by motor vehicles of highways. 
 In this respect, the fee charged for licensing or mandatory certification is not included into the 
unified fee, and is not to be charged at entry points at the State border. 
 The amount of the unified fee is not differen tiated on the basis of the number of types of 
control that are prescribed for a particular type of pr oducts. This is due to the fact that 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 vehi cle carries. Thus, the same amount of the unified fee 
is applied to two identical vehi cles with different cargoes.  WT/ACC/UKR/110/Add.2 
 Page 21 
 
 
 Item 40 
Please confirm the current status of th e .01 ECU per kilo duty on oil imports. 
Answer:  
 Pursuant to Resolution No. 1460 of the Cabinet of Ministers of Ukraine, dated 
18 September 1998, oil imports into Ukraine are subject to the .01 ECU per kilo customs duty that is transferred into the State Budget. 
 The Customs Code of Ukraine, which enters into force 1 January 2004, provides for 
cancellation of the said duty. 
Item 41 
Please provide a current comprehensive list of  all/all duties, fees, and charges applied to 
imports, whether or not for services rendered (not including domestic taxes applied to imports) and their level of application. 
Answer:
 
Currently, the following duties, fees, and charges are applied to imports pursuant to effective 
Ukrainian law: 
 - Import Duty  
 Import duties are imposed on all goods imported into Ukraine at the time such goods cross a 
customs border (in case of customs clearance at the border) or in the course of customs clearance by 
internal customs offices located at the address of an importer. Conditions under which import duties 
are calculated and charged are set out in the Law of Ukraine, dated 5 February 1992, under 
No. 2097-XII, "On the Single Customs Tariff". Import duties are calculated on the basis of customs 
value of goods or as a flat charge per unit. Import duties are paid by payers prior to/or on the date of 
customs clearance in Ukrainian hryvnias. 
 Import duties are differentiated: 
- preferential import duty rates ar e applied to goods that come from countries that are part 
of customs unions together with Ukraine or ha ve with Ukraine special customs zones, and 
in the event that any special preferential cu stoms regime is established pursuant to 
international treaties and agreements  to which Ukraine is a party; 
- privileged import duty rates apply to goods that  come from countries or economic unions 
that enjoy MFN treatment in Ukraine; and 
- full (common) import duty rate s apply to all other goods. 
 Pursuant to the Law "On the Single Customs Ta riff", it is permitted to  set preferences with 
respect to import duty rates in Ukraine in the form of exemption from import duties, reduction of import duty rates or establishmen t of quotas for preferential importation of goods and other items. 
 Import duty rates are set by th e Law of Ukraine, dated 5 April 2001, No. 2371-III "On the 
Customs Tariff of Ukraine". WT/ACC/UKR/110/Add.2 
Page 22  
 
  - Customs Fees
 
 Pursuant to Articles 76 and 77 of the effectiv e Customs Code of Ukraine, customs fees are 
charged for customs clearance and customs control of motor vehicles, goods and other items that 
cross the customs border of Ukraine. 
 In accordance with Article 77 of the effectiv e Customs Code of Ukraine, customs authorities 
charge customs fees for customs clearance of goods and other items at customs control zones within 
territories and in premises of enterprises that store such goods and other items, or after regular 
working hours prescribed for customs offices, and for storage of goods and other items under 
responsibility of customs offices in cases when a transfer of such goods and other items into storage is 
not mandatory under Article 85 of the Code. Rates of customs fees are approved by Resolution No. 65 
of the Cabinet of Ministers of Ukraine, dated 27 January 1997, "On Rates of Customs Fees".  
Customs fees indicated below will be charged until 1 January 2004.  (See the Table below) 
Table 3  
No. Name of the transaction  Amount of the fee  
Customs clearance of goods and other items if their customs value:  
is under US$100  not charged  
ranges from US$100 to US$1,000  US$5  1. 
is over US$1,000  0.2% of customs value of 
goods, but not more than 
US$1,000  
Customs clearance of temporally imported (exported) property, subject 
to an obligation to export (import) same back:  
for each cargo customs declaration  US$30  2. 
for each additional sheet thereto  US$15  
Customs clearance of goods if brought into a licensed customs 
warehouse:  
for each cargo customs declaration US$30  3. 
for each additional sheet thereto US$15  
Stay of goods and other items under customs control, for each day of 
stay:  
for the first fifteen calendar days  is not charged  4. 
for each next calendar day  0.05% of total customs value of 
goods 
Customs clearance of goods at customs control zones within territories 
and in premises of enterprises that store such goods and other items, or after regular working hours prescribed for customs offices (for 1 hour 
of work of one customs officer):  
during working hours  US$20  
during non-working hours, Saturdays, Sundays  US$40  5. 
holidays  US$50  
 
In addition, pursuant to Resolution No. 285 of  the Cabinet of Ministers of Ukraine, dated 
7 March 1998, in the event of customs clearance of  scrap metal and ferrous and non-ferrous metal 
scrap exports, rates of customs fees for customs clearance of such products, stay thereof under customs control and a summons of a customs insp ector are paid by business entities five times 
customs fee rates of such type, except for business entities that export such products pursuant to a 
State program for utilization metals in common type s of ammunition not suitable for further use and 
storage.  WT/ACC/UKR/110/Add.2 
 Page 23 
 
 
  Resolution No. 1460 of the Cabinet of Minist ers of Ukraine, dated 18 September 1998, 
approved an additional cust oms fee for customs clearance of oil pr oducts that are imported into the 
customs territory of Ukraine and are subject to the .01 ECU per kilo excise duty that is transferred into 
the State Budget and specially directed into the Pension Fund. This Resolution does not apply to oil 
products that are produced and sold in Ukraine.  Customs fees indicated above will be charged unt6il 
1 January 2004. 
 The new Customs Code of Ukraine adopted by the Supreme Rada of Ukraine on 
11 July 2002, No. 92- ІУ (Article 71), upon entry into force (1 January 2004), will introduce such 
terms as "fees for customs clearance of goods, if such clearance takes place off-location or after 
regular working hours prescribed for customs authorit ies". Amounts of such fees as set by Resolution 
No. 93 of the Cabinet of Ministers of Ukraine, dated 18 January 2003, are as follows: 
Table 4  
 Name of the transaction  For 1 hour of work during customs 
clearance of one shipment of goods or 
one motor vehicle,  
in US$ 
Customs clearance of goods a nd motor vehicles off-location 
by customs authorities:   
during working time  20  
during extra hours, night time and on weekend days  40  1. 
on holidays and non-working days  50  
Customs clearance of goods and motor vehicles on location by 
customs authorities after regular working hours prescribed for customs authorities:   
during extra hours, night time and on weekend days  40  2. 
on holidays and non-working days  50  
 
 - Unified Fee (See also the response to Item 21)  
 In order to simplify procedures for customs clea rance of motor vehicles that cross the customs 
border of Ukraine, the Supreme Rada of Ukraine adopted on 12 July 2001 a Law of Ukraine, under 
No. 2659-II І, "On Amendments to the Law of Ukraine "On the Introduction of the Unified Fee 
charged at Points of Entry through the State Border of Ukraine". 
 Pursuant to this Law, the unified fee is pres cribed that will be charged at points of entry 
through the state border of Ukraine upon national and foreign owners of motor vehicles. This fee 
consists of fees for customs control of cargoes and motor vehicles in transit and for sanitary, 
veterinary, phytosanitary, radiological and environm ental control, and of fees for passage by motor 
vehicles, other self-propelled machines and mechanisms by highways in Ukraine. 
 Pursuant to Article 2 of the Law of Ukra ine, dated 12 July 2001, under No. 2659- ІІІ, the 
unified fee shall be charged one time, depending on a regime of passage (importation, transit) under a 
single payment document. 
 Unified fee rates are approv ed by Article 5 of the said Law of Ukraine in EURO. 
 Unified fees are charged at po ints 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. WT/ACC/UKR/110/Add.2 
Page 24  
 
  Article 2 of Law No. 2659- ІІІ of Ukraine, dated 12 July 2001, sets the following unified fee 
rates: 
Table 5
 
Unified fee rate per unit of motor 
vehicle in EURO  
Type of motor vehicle  Capacity or total mass of the motor 
vehicle with cargo  For performance 
of control  For passage by 
highways for each 
kilometer 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 
Over 5% to 10% inclusive - 0.1 
Over 10% to 20% inclusive - 0.27 4. Large-size motor vehicles with 
axial load exceeding  
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 - 
 
 Concerning fees are charged at Ukrainian ports see also the response to Item 19. 
Item 42 
We seek a commitment from Ukraine that upon accession any fees or charges for services 
rendered related to importation or exportation would be applied only in conformity with 
Article VIII of the GATT 1994, and that information regarding the application and level of any such fees, revenues collected and their use wo uld be provided to WTO Members upon request. 
Answer:
 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of pr eparation of the draft Report of the Working Party.  
(e) Quantitative import restrictions 
Item 43 
The chart in item No. 18 indicates that quantitative restrictions are applied as trade remedies on 
a number of products as authorized by the La w "On the Application of Special Measures to 
Imports into Ukraine of 22 December 1998.  WT/ACC/UKR/110/Add.2 
 Page 25 
 
 
 To the extent that they are applied to WTO members, how does Ukraine intend to proceed at 
the time of its accession to ensure that their application is consistent with WTO provisions. 
(Note: We do not assume that Ukraine's cur rent legislation is WTO consistent. End note) 
Answer:  
We understand that some provisions of the Law "On the Application of Special Measures to 
Imports into Ukraine", dated 22 December 1998, are no t fully consistent with the provisions of Article 
5.1 of the Safeguards Agreement in the part deali ng with the determination of quota amounts if trade 
remedies are applied. 
Currently, a draft law is under preparation that  will introduce the necessary amendments to 
the Law "On the Application of Spec ial Measures to Imports into Ukra ine", in order to bring the same 
into conformity with the WTO rules. 
Item 44 
Please list any additional imports by HS number,  subject to any type of quantitative import 
restrictions, the nature of the restriction (e.g., quota or ban) and the WTO justification for these 
measures, e.g., does Ukraine apply any sort of quantitative limitation on the importation of 
alcoholic beverages? 
Answer:  
 The table provides information regarding all quan titative limitations, applied by Ukraine as to 
imports of products, and substantiation of  such limitations by the WTO norms: 
Table 6  
HS Code Name of product Country of origin Grounds and conformity to 
the WTO norms 
8703 22 19 00 Motor cars Russian Federation Articles 2-5 of the WTO 
Agreement on Safeguard 
Measures 
2836 30 00 00 Baking soda Russian Federation Articles 2-5 of the WTO 
Agreement on Safeguard 
Measures 
2523 29 00 00 Concrete Russian Federation Articles 2-5 of the WTO 
Agreement on Safeguard Measures 
3921 13 Slabs, sheets, film and plates 
of polyurethane  Belarus, Russian Federation, 
Lithuania, Poland, Czech 
Republic, Hungary Articles 2-5 of the WTO 
Agreement on Safeguard 
Measures 
9018 31 10 00 Syringes with and without 
needles of plastic materials 
with the volume of 2, 5, 10, 
20 ml Russian Federation, Slovakia, 
Belgium, Poland, Germany, SpainArticles 2-5 of the WTO 
Agreement on Safeguard 
Measures 
 
 Ukraine does not apply quantitative limitations on the importation of alcoholic beverages. WT/ACC/UKR/110/Add.2 
Page 26  
 
 (f) Import licensing procedures 
Item 45 
The response to Item No. 19 is not fully responsive.  Is the information on import licensing 
procedures in WT/ACC/UKR/99 still current?  What  is the status of licensing arrangements for 
imports of ethyl alcohol, alcoholic beverages, and tobacco? 
Answer:
 
 According to Ukrainian legislation the right to perform operations with ethyl alcohol and 
alcoholic beverages (exportation, importation, produc tion, internal wholesale trade) is granted on the 
basis of an activity license.  No import license is required. 
 Information on the license necessary to engage in the activity of importing alcohol and 
alcoholic beverages was included in WT/ACC/UKR/99 in the interests of transparency.  Imports of 
tobacco and tobacco products are undertaken by firms having a license to engage in such activity. For 
these firms no further license is required. WT/ACC/UKR/99 is being revised and updated. 
Item 46 Item 8 lists "import operations subject to mandatory licensing. 
In the case of plant protection chemicals, optical media materials, and special papers, are these 
requirements activity licensing, import licensing, or both? 
Answer:
 
 Chemicals (insecticides, rodenticides, fungic ides, herbicides, other chemicals preventing 
germination of sprouts and regulators of plant growth, codes under the UCP FEA – 3808 10, 3808 20, 
3808 30, 3808 90), certain types of special papers (p ostal, excise marks, stamp paper, codes under the 
UCP FEA – 4907 00 10, 4907 00 91, 4907 00 99) are considered categories subject to import 
licensing without quantitative limitations. 
 Importation of optical polycarbonate (code 3907  40 0000), discs for laser reading systems and 
master discs designed for the production of discs fo r laser reading systems is allowed only by firms 
having a license to engage in such import activitie s.  For those firms no further license is required. 
Information on this licensing procedure was included in WT/ACC/UKR/99 in the interests of 
transparency. 
Item 47 Does Ukraine observe the provisions of the Agreement on Import Licensing Procedures in the 
licensing requirements listed in the chart? If not, what steps are being taken to amend the 
procedures? 
Answer:
 
 Licensing requirements applicable to imports of goods into Ukraine comply with the 
provisions of the Agreement on Import Licensing Procedures  WT/ACC/UKR/110/Add.2 
 Page 27 
 
 
 Item 48 
Are there any other products, e.g., automobiles, armaments, narcotics, nuclear materials, etc., 
subject to import licensing other than those listed in item No. 18? Why was import licensing for 
alcohol and tobacco omi tted from the chart? 
Answer:  
 In addition to the chart (Item No. 18 in WT/ACC/UKR/110), quantitative restrictions on the 
importation of new automobiles from the Russian Fe deration (code 8703 22 19 00) effective as from 
12 December 2002 up to 9 December 2006 were introduced by Decision No. SP-54/2002/52-49 of the 
Interdepartmental Commission on Foreign Trade, dated 6 December 2002, as protective measures, in 
accordance with Articles 2 - 5 of the WTO Agreement on Safeguards. 
As regards the regime applicable to importation of armaments, such importation is governed 
by the Law of Ukraine "On State Control over In ternational Transfers of Products of Military 
Designation and Dual Use", dated 20 February 2003  under No. 549-IV.  Pursuant to the said Law 
(Article 9), lists of names and descriptions of goods , international transfers of which are subject to 
State expert-performed control, are prepared and approved by Resolution No. 1358 of the Cabinet of 
Ministers of Ukraine, dated 8 December 1997, "O n Approval of the Regulation on Procedures for 
State Control over International Transfer s of Products of Military Designation". 
 Procedures, under which State control is performed, are defined by the following Resolutions 
of the Cabinet of Ministers of Ukraine: 
- Resolution No. 384, dated 22 April 1997, "On Approval of the Regulation on Procedures 
for Control over Exports, Imports and Transit of Products that may be used in the Manufacturing of Chemical, Bacteriological (Biological) and Toxic Weapons"; 
- Resolution No. 563, dated 27 July 1995, "On Approval of the Regulation on Procedures 
for Control over Exports, Imports and Transit of Missile Devices, as well as Equipment, 
Materials and Technologies used in the Manufacturing of Missile Weaponry"; 
- Resolution No. 302, dated 12 March 1996, "O n Approval of the Regulation on Procedures 
for Control over Exports, Imports and Transit of Products that rela te to Nuclear Activities 
and may be used in the Manufacturing of Nuclear Weapons"; 
- Resolution No. 1005, dated 22 August 1996, "On Procedures for Control over Exports, 
Imports and Transit of Certain Types of Devices, Equipment, Materials, Software and 
Technologies that may be used in the Manu facturing of Armaments, Military or Special 
Equipment". 
 At the same time, exportation and importat ion of products of military designation and 
products, which contain information constituting St ate secrets, are governed by Article 13 of the 
above referenced Law, whereby subjects enga ged in foreign economic activities must obtain 
corresponding authorizations from the Cabinet of Ministers of Ukraine. 
 As regards the regime applicable to importation of narcotics, such importation is governed by 
the Law of Ukraine "On Circula tion in Ukraine of Narcotics, Psychotropic Substances, their 
Analogues and Precursors", dated 15 February 1995, under No. 60/95- В.  The Law provides that 
narcotics shall be imported (brought into) or exported by a body authorized by the Cabinet of 
Ministers of Ukraine pursuant to a certificate (separate permit) issued by the Narcotics Control 
Committee within the Ministry of Health Care of Ukraine. The certificate is issued subject to a 
confirmation from the Security Service of Ukraine. WT/ACC/UKR/110/Add.2 
Page 28  
 
  As regards inclusion into the chart (Item No . 18 in WT/ACC/UKR/110) of the requirement 
for import licensing for alcohol and alcoholic beverage s, it should be noted that no import license is 
required. See the answer to Item 45. 
Item 49 It is stated that the Ministry of Economy a nd European Integration issues licenses. Are there 
other agencies that must be approached and all required documentation? 
Answer:
 
 Licenses are issued by the Ministry of Economy and European Integration of Ukraine.  It 
assigned the right issuing licenses for importation, exportation of products by subjects of 
entrepreneurial activity, registered in relevant re gions, and whose accounting value under agreements 
(contracts) does not exceed US$300,000 to oblast, city state administrations and the Ministry of Economy of the Autonomous Republic of Crimea. 
Licenses for importation of insecticides, rodent icides, fungicides, herbicides, other chemicals 
preventing germination of sprouts and regulators of  plant growth (except neocidole (3808 10 40 00) 
and larinate (3808 90 10 00)) are issued upon ap proval from the State technical center for protection 
of fertility of soil at the Ministry of Agrarian Policy of Ukraine. 
 Licenses for importation of ozone destructive substances, exportation and importation of 
which is subject to licensing in 2003, are issued upon approval from the Ministry of Ecology and 
Natural Resources. 
 Licenses for importation of products that may contain ozone destructive substances, and 
exportation and importation of which is subject to  licensing in 2003, are also issued upon approval 
from the Ministry of Ecology and Natural Resources. 
 Licenses are issued according to the procedure envisaged by Article 16 of the Law of Ukraine 
"On Foreign Economic Activity" and the Order of th e Ministry of Economy and European Integration 
of Ukraine No. 36 of 18 February 2003. 
The following documents are furnished to obtain the license: 
- license application; 
- letter of application as to issuing the licens e with the guarantee of fee payment for its 
issuing; 
- copy of a contract, all supplements and specificat ions thereto, certified by the director of 
the subject of entrepreneurial activity; 
- copy of the state registration certificate, certified by the director of the subject of 
entrepreneurial activity; 
- approval of a relevant authorized institution (d ata on requirements as to the approval are 
specified above) according to the Resolution  of the Cabinet of Ministers of Ukraine 
No. 1939 of 25 December 2002 "On the List of Products, Exportation and Importation of 
Which is Subject to Quoting and Licensing in 2003"; and 
- expert examination act of the product, issued  by the Chamber of Commerce and Industry 
of Ukraine or a regional chamber of commerce and industry, with specification of the 
product code.  WT/ACC/UKR/110/Add.2 
 Page 29 
 
 
 Item 50 
WT/ACC/UKR/91 stated that import licenses for cer tain products can only be issued to legal 
entities and not natural persons. Why and what are the products? 
Answer:  
 Any natural person who has taken the steps necessary to engage in business in Ukraine has 
the right to obtain an import license. 
Item 51 WT/ACC/UKR/99 states that "age nts of entrepreneurial activity  registered in Ukraine" may 
apply for a license.  In previous documentation, Ukraine has indicated that, as a prerequisite to 
getting an import license, importers must have a contract registration card.  To get this registration card importers are required to provide at least six documents. 
Please clarify if a contract registration card remains necessary to acquire import licenses. What 
is its purpose? Are domestic and foreign entities required to submit to the same procedures? 
Answer:
 
 Contract registration cards no longer exist, and there is no requirement for an importer to have 
a contract registration card in order to obtain an import license. The documents required to obtain an import license are fully describe d in the Answer to Item 49. 
Item 52 
We ask that Ukraine confirm that its licence fee, which is applied uniformly across each 
commodity, relates directly to the cost of providing the service. 
Answer:
 
 According to the cost estimate for issuing the license for importation of products into Ukraine 
the license fee is UAH255 or 15 minimum non-taxable personal incomes (minimum non-taxable 
personal income is an established internal conditional unit). This is s tipulated by the Resolution of the 
Cabinet of Ministers of Ukraine No. 893 of 2 August 1996 "On the Size of State Duty for Issuing 
Import Licenses". 
Item 53 
In the related document WT/ACC/UKR/99 on impo rt licensing procedures, Ukraine notes that 
it employs non-automatic licensing procedures as a means to protect domest ic industry (i.e., in 
violation of GATT Article III and the Agreement on Import Licensing). We seek clarification as 
to steps Ukraine will take to ensure WTO consistency of these practices. 
Answer:  
 The information in WT/ACC/UKR/99 is no longer valid.  Updated information has been sent 
to the Working Party in WT/ACC/UKR/99/Rev.1. WT/ACC/UKR/110/Add.2 
Page 30  
 
 (h) Customs valuation  
Item 54 
In previous discussions in the Working Party, delegations have outlined in some detail where 
they believe Ukraine's current customs valuation regime does not meet WTO norms.  These 
concerns should be summarized and included in the factual summary. 
Please confirm that Ukraine's new Customs Code has been implemented.  Has a true copy been 
provided to the Working Party in translation? 
Answer:
 
The new Customs Code of Ukraine will enter into force on 1 January 2004.  The English 
version has been submitted to the Working Party. 
The customs valuation regime is governed by Articles 259-273 of the Customs Code of 
Ukraine. 
 Thus, pursuant to Article 259 of the Code, customs value of goods is the value of goods 
transferred through the customs border of Ukraine, wh ich value is stated by a declarant or determined 
by a customs authority and which is calculated at the moment goods cross through the customs border of Ukraine. 
 Pursuant to Article 261 of the Code, customs value of goods is used for assessment of taxes 
and fees, maintenance of customs statistics and, as ap plicable, for calculations in case of application 
of penalties, other sanctions and fines provided by the laws of Ukraine. 
 Pursuant to Article 262 of the Code, customs value of goods is determined by a declarant in 
accordance with the provisions of the Code, and the customs authority, which carries out customs 
clearance of goods, controls the correctness of the customs value determination for the goods. 
 The applicable provisions of the Agreement on Implementation of Article VII of GATT 1994 
underlie customs valuation methods contemplated by the Code (See the Table). 
Table 7
 
Compliance of Articles of the Code with  the Agreement on Implementation of  
Article VII of GATT 1994  
Articles of the Code Articles of the Agreement on 
Implementation of Article VII of 
GATT 1994  
263. Observance of Information Confidentiality  10 
264. Rights and Obligations of the Declarant who declares the Customs Value of Goods   
§ 2 17 
§ 4-5 13 
265. Rights and Obligations of a Customs Authority in Controlling 
Customs Valuation of Goods  
§ 3  16 
266. Methods of Determination of Customs Value of Goods that are 
Imported into Ukraine General Comments, 4 
267. Valuation Method based on the Transaction Value of Imported   WT/ACC/UKR/110/Add.2 
 Page 31 
 
 
 Articles of the Code Articles of the Agreement on 
Implementation of Article VII of 
GATT 1994  
Goods 
§ 2. Inclusion of costs   
1).а)-c) 8.2 
2).а)-c) 8.1.(a) 
3).а)-d) 8.1.(b) 
4) 8.1.(c) 
5) 8.1.(d) 
§ 3. Conditions for Application of Valuation Methods   
1).а)-c) 1.1.(a) 
2).а)-c) 1.1.(b) 
4) 1.1.(c) 
5).а)-g) 1.1.(d), 15.4 
6) 15.5 
7).а)-c) 1.1.(b), 1.2.(a) 
§ 4. 1.1.(b) 
268. Method of Valuation based on the Transaction Value of Identical 
Goods  2, 15.2.(a) 
269. Method of Valuation based on the Transaction Value of Similar 
Goods 3, 15.2.(b) 
270. Admonition in Application of Methods for Determination of the 
Customs Value of Goods according to the Transaction Value of Similar 
Goods  15.2.(c)-(e) 
271. Methods of Valuation based on the Deductive Value 5 
272. Method of Valuation based on Computed Value 6 
273. Reserve Method 7 
 
 - Valuation Method specified in Article 1 of the WTO Agreement  
 The Code (Article 267) provides that the customs value of imported goods shall be the 
transaction value, which is a price actually paid or payable for the goods imported into Ukraine at the 
moment of their crossing the customs border of Ukraine. 
- In addition, this Article of the Code defines: 
- conditions for application of the evaluation method; and 
- rules for adjustment of the transaction valu e for determination of the customs value of 
goods, if they have not included therein before. 
 The Code reflects all major provisions of the Agreement on Implementation of Article VII of 
GATT 1994 that relate to this method of evaluation (see  the Table 7). 
 - Valuation Method specified in Article 2 of the WTO Agreement  
 The Code (Article 268) provides that in applying the method of valuation based on the 
transaction value of identical goods (the second method), the transaction value of identical goods will 
be used for purposes of determining the customs value of goods, provided that requirements specified in the above Article are met.  Identical goods are considered to be goods which are the same in all 
respects with the goods being valu ed. In this respect, the term "identical goods", as defined in 
Article 268 of the Code, corresponds to the definition in Item 2.(a) in Article 15 of the Agreement on 
Implementation of Article VII of GATT 1994. WT/ACC/UKR/110/Add.2 
Page 32  
 
  In addition, this Article  of the Code defines: 
- conditions for application of the evaluation method; and 
- rules for adjustment of the transaction valu e for determination of the customs value of 
goods, if they have not included therein before. 
 The Code reflects all major provisions of the Agreement on Implementation of Article VII of 
GATT 1994 that relate to this method of evaluation (see  the Table 7). 
 - Valuation Method specified in Article 3 of the WTO Agreement  
 The Code (Article 269) provides that in applying the method of valuation based on the 
transaction value of similar goods (the third method), customs value shall be the transaction value of 
similar goods imported in accordance with the provisions determined by this Article, for purposes of 
determining the customs value of imported goods.  "Similar goods" mean goods which, although not alike in all respects, have like characteristics a nd like component materials which enable them to 
perform the same functions in comparison with goods being valued, and are commercially 
interchangeable. In this respect, the term "simila r goods", as defined in Article 269 of the Code, 
complies with the definition in Item 2.(b) ) in Article 15 of the Agreement on Implementation of 
Article VII of GATT 1994. 
 In addition, this Article  of the Code defines: 
- conditions for application of the evaluation method; and 
- rules for adjustment of the transaction valu e for determination of the customs value of 
goods, if they have not included therein before. 
 The Code reflects all major provisions of the Agreement on Implementation of Article VII of 
GATT 1994 that relate to this method of evaluation (see  the Table). 
 - Valuation Method specified in Article 5 of the WTO Agreement  
 The Code (Article 271) provides that the customs value of goods will be determined on the 
basis of the method of valuation based on the deductive value (the fourth method) in the event that 
goods being valued or identical or similar imported goods are sold in the customs territory of Ukraine 
in the condition as imported, the customs value of the goods.  In applying this valuation method the customs value of goods will be based on the unit price at which the goods being valued or identical or 
similar goods are sold in the greatest aggregate quantity on the territory of Ukraine, at or about the 
same time of the importation of goods being valued, but not later than 90 days from the date of 
importation of the goods to the unrelated buyer . 
 In addition, this Article  of the Code defines: 
- conditions for application of the evaluation method; and 
- rules for adjustment of the transaction valu e for determination of the customs value of 
goods, if they have not included therein before. 
 The Code reflects all major provisions of the Agreement on Implementation of Article VII of 
GATT 1994 that relate to this method of evaluation (see  the Table).  WT/ACC/UKR/110/Add.2 
 Page 33 
 
 
  - Valuation Method specified in Article 6 of the WTO Agreement  
 The Code (Article 272) provides  that in determining the value of imported goods by applying 
the method of valuation based on the computed value (the fifth method), the price of goods that is 
computed by way of adding of costs of production, delivery, sale and profits that the exporter usually 
receives as a result of delivery of such goods, will be used as a basis for determination purposes.  The 
Code reflects all major provisions of the Agreement on Implementation of Article VII of GATT 1994 
that relate to this method of evaluation (see  the Table). 
 - Valuation Method specified in Article 7 of the WTO Agreement  
 The Code (Article 273) provides that the reserve method (the sixth method) will be applied if 
the customs value may not be determined by the d eclarant by way of subsequent application of the 
first five methods, or if a customs authority has reasons to believe that these methods of determining 
the customs value can not be applied. 
 In such case, customs value of goods will be determined through the reserve method on the 
basis of Ukrainian legislation, and must be consistent  with principles and provisions of Article VII of 
General Agreement Tariffs and Trade (GATT) and Agreement on Implementation of Article VII of 
GATT 1994. 
 The Code reflects all major provisions of the Agreement on Implementation of Article VII of 
GATT 1994 that relate to this method of evaluation (see the Table 7). 
 Among important provisions of the Agreement on Implementation of Article VII of GATT 
1994, which have found their reflection in the Code, the following provisions should be noted: 
- provisions of Article 10 of the Agreement as  to observance of information confidentiality 
(See Article 263 of the Code); 
- provisions of Article 13 of the Agreement, which state that in the event that a declarant 
does not agree with the determination of customs value by a customs authority, the 
declarant may request to withdraw goods being declared from  customs into free 
circulation, if such a declarant provides bank guarantees, and in such case the customs 
authority is obligated to release such goods in to free circulation (See paragraphs 4-5 of 
Article 264 of the Code); 
- provisions of Article 16 of the Agreement rega rding the right to an explanation in writing 
from the customs administration as to how the customs value of the importer's goods was 
determined (See paragraph 3 of Article 265 of the Code); and 
- provisions of Article 17 of the Agreement regarding the rights of the customs 
administration to satisfy itself as to the truth or accuracy of any data and documents (See paragraph 2 of Article 264 of the Code). 
 The Code has translated the main objective of the Agreement on Implementation of 
Article VII, specifically pr otection of interests of bona fide traders by demanding from customs 
authorities to accept a price actually paid by an impo rter under a contract as a basis for assessment of 
customs fees and duties.  It concerns contracts both with unrelated and related parties.  The 
Agreement provides that prices of different import ers for the same good may differ.  The only fact 
that the price for goods of a separate importer is lower than prices, under which other importers 
import such goods, may not be used as a ground for refusing to use transaction value.  Customs 
authorities are permitted not to use transaction value only in those cases when there are reasons to 
doubt as to whether the declared price for imported  goods is true or correct.  Even in such cases 
customs authorities must ensure for an importer an opportunity to justify its price and, if such WT/ACC/UKR/110/Add.2 
Page 34  
 
 justification is not accepted, provide an explanatio n for their refusal from transaction value, and for 
application of other cu stoms evaluation methods. 
 In addition to rights of import ers to consultations at all stages  of customs valu e determination, 
the provisions on customs evaluation  of goods grant to the importers: 
- a right to withdraw goods from customs if a delay in the determination of customs value 
is apparent, on condition that a sufficient guarantee in the form of a surety or a deposit, covering the ultimate payment of customs duties for which the goods may be liable is 
provided; 
- a right to expect that any information which is by nature confidential that is provided on a 
confidential basis to customs authoritie s will be treated as confidential; and 
- a right to appeal to a customs administration or judicial authorities regarding decisions of 
customs authorities. 
 Thus, the provisions of the new Customs Code of Ukraine regarding determination of 
customs value of goods comply with the Agreement on Implementation of Article VII of GATT 1994. 
Item 55 
Will additional regulations be necessary to impl ement the customs valuation provisions of the 
Code? What is the relevance of the new Tax Co de to Customs Valuation, as implied in the 
response to item No. 21?  What additional legislative provisions exist outside the text of the 
Code that address WTO requirements in the ar ea of Customs Valuation, e.g., right of 
administrative and judicial appeal, transparency, etc? 
Answer:  
 Such necessity will exist, as currently matters  of customs evaluation are governed by Order 
No. 1598 of the Cabinet of Ministers of Ukraine, dated 5 October 1998, "On Approval of Procedures 
for Determination of Customs Valu es of Goods and Articles transfer red through the Customs Border 
of Ukraine", as amended by Resolution No. 1537 of the Cabinet of Ministers of Ukraine, dated 
12 October 2000, which Order contains a number of provisions that do not comply with provisions of 
the Ukraine's Customs Code and, consequently, should be brought into conformity with these norms 
prior to the entry into force of the Code (1 January 2004). Upon drafting and enactment of these 
regulatory acts, they will be additionally translated and provided. 
 In the response to item No. 21 in documen t WT/ACC/UKR/110, the draft Tax Code is 
mentioned in connection with a question as to the status of improvement of Decree No. 104 adopted 
by the President of Ukraine, whereby a list of priority draft laws is identified.  The Tax Code does not contain any customs valuation procedures. 
 Pursuant to Article 265 of the Customs Co de, decisions of customs authorities regarding 
determination of customs values of goods may be appealed under the procedure established by law. 
 Procedures for resolution of disputes aris ing between a customs authority and an entity 
engaged in foreign economic activities are governed by the Code of Commercial Procedure of Ukraine. Pursuant to Article 1 of the Code of Commercial Procedure of Ukraine, enterprises, organizations, other legal entities (including foreig n legal entities), citizens, who are engaged in 
entrepreneurial activities without establishment of a legal entity and have acquired the status of agent 
of entrepreneurial activity (hereina fter referred to as, the "Enterprises and Organizations"), shall be 
entitled to bring action in commercial courts, in order to protect their violated or disputed rights and  WT/ACC/UKR/110/Add.2 
 Page 35 
 
 
 legislatively protected interest. This Code desc ribes procedural rules fo r challenging decisions 
adopted by customs authorities. 
 Pursuant to Article 116 of the Code of Commercial Procedure of Ukraine, a decision of a 
commercial court shall be enforced on the basis of a writ issued by such a court, which writ shall be 
an enforcement document.  The writ shall be issued to a recovering party or shall be sent to such party 
upon entry into legal force of the court decision.  The writ of the commercial court must specify: 
- name of the commercial court, the case number, the date of decision adoption, the date of 
issuance of the writ, and the term of its effect; 
- operative part of the decision; and 
- name of the recovering party and the debtor , their addresses, names and bank account 
numbers. 
 The writ shall be signed by the judge and attested with a stamp of the commercial court.  Pursuant to Article 115 of the Code of Commer cial Procedure of Ukraine, decisions, decrees, 
resolutions, writs of commercial courts, which have entered into legal force, shall be binding within 
all Ukrainian territory, and shall be enforced throug h court enforcement officers. Prosecutor's offices 
shall supervise such enforcement proceedings. 
Item 56 
In the factual summary, Ukraine should indicate how the following conformity issues have been 
addressed in the new Code: 
- Where are the Interpretative Note s to be found in Ukrainian law? 
- Are importers now notified when tr ansaction value will be disallowed? 
- What judicial decisions regarding customs valuation are published? Under what 
conditions can the use of transaction value be disallowed? 
Answer:  
 Currently, there are no Interpretative Notes in Ukrainian law.  Their provisions are planned to 
be incorporated into the Commentary to the Cust oms Code of Ukraine, which is currently being 
prepared by the Customs Service. 
 Notice is provided. Pursuant to Article 265 of the new Customs Code , which will enter info 
force on 1 January 2004, a customs authority, upon a written request of the declarant, is required, 
within a month, to provide the Declarant with written explanations regarding the reasons for the non-
acceptance of the customs value of goods declared by the declarant to the customs authority for 
assessing the customs fees and duties. 
 Currently, judicial decisions regarding cust oms valuation are not published. The Customs 
Service places decisions of general application on its official site in the Internet. 
 Pursuant to Article 264 of the Code, if the customs value of goods declared by a declarant 
needs to be supported, the declarant may be requ ired, upon the request of a customs authority, to 
provide necessary informat ion to this authority. WT/ACC/UKR/110/Add.2 
Page 36  
 
  If the necessary information does not comply with the prescribed requirements or is 
insufficient for acceptance of transaction value as a basis for determining customs value, the customs 
authority may adopt a decision regarding an impossi bility to apply the valuation method based on the 
transaction value of imported goods. 
 In this case, the declarant may request to th e customs authority to release goods to such a 
declarant into use, ensuring the full payment of taxes and fees by providing a bank guarantee or 
paying taxes and fees based on customs valuation.  Also, the declarant has an opportunity to provide 
documents confirming the customs value for purposes  of review of a decision adopted by a customs 
authority. 
Item 57 
In related party transactions, what tests are appl ied to allow the use of transaction value, i.e., 
where does the burden of proof lie?  Does the ne w Code allow the use of sales of identical or 
similar merchandise at different commercial leve ls and quantities?  Are the use of minimum 
and alternative values strictly prohibited, as required by Article 7.2 of the WTO Valuation 
Agreement? 
Answer:
 
 A customs authority considers a price to be acce ptable in the event that relatedness of parties 
to a transaction has not influenced the value of impo rted goods, i.e., the price is close to transaction 
value under which the given goods are sold in Ukraine to other buyers who are not related with the 
seller – the party to the transaction.  Respective explanations are prepared as commentary to the 
Customs Code (See the answer to Item 56). 
 Article 273 of the Customs Code contains  seven prohibited customs evaluation methods, 
including minimum values and the higher of two alternative values. 
Item 58 
Outline the provisions of the guar antee/surety provisions of the Code that allow importers to 
withdraw goods from customs pending the final determination of the customs value. 
We believe that focused review of the provisi ons of Ukraine's new Customs Code could be 
helpful in addressing Members' concerns and he lp move Working Party deliberations forward 
in this area. Such focused discussion should occur when experts would be available. 
In addition, we would appreciate confirmation  as to whether the Order of the Cabinet of 
Ministers of Ukraine No. 1537, dated 12 October 2000, dealing with Customs Valuation issues, 
is still in force and if so if the Working Pa rty can be provided with a copy for review. 
The protocol package should contain a strong commitment to bring Ukraine's customs 
valuation regime into line with WTO, including sp ecific reference to the issues we have raised. 
Answer:  
 Pursuant to Article 264 "Rights and duties of a Declarant who declares the Customs Value of 
Goods" of the Code, an importer has a right to re quest a customs authority to release to such an 
importer goods being declared for free circulation under a guarantee from an authorized bank, or a 
promissory note issued by the importer to the cust oms authority and avaled by the bank, or a deposit 
at the bank.  WT/ACC/UKR/110/Add.2 
 Page 37 
 
 
  If the declarant has provided a guarantee from the authorized bank, the customs authority 
must release the goods into free circulation. 
 Focused review of the provisions of the new Customs Code regarding customs evaluation 
issues is set out in the answer to Item 54 of th is document. The Ukrainian party will carry out focused 
discussions highlighting issues of conformity of Ukraine's new Customs Code with the WTO 
Agreements. 
 Presently, Order No.1537 of the Cabinet of Ministers of Ukraine, dated 12 October 2000, 
remains in force and effect until 1 January 2004.  Thereafter it will be amended in connection with the 
entry into force of the new Customs Code. Since this Order introduces clarifications to Order 
No. 1598 of the Cabinet of Ministers of Ukraine, dated 5 October 1998, "On Approval of Procedures 
for Determination of Customs Valu es of Goods and Articles transfer red through the Customs Border 
of Ukraine" and separately does not contain the te xt setting forth the said procedures, we provide to 
the Working Party a translation of Order No.1598 of the Cabinet of Ministers of Ukraine, dated 
5 October 1998 (with indication of amendments made  by Order No.1537 of the Cabinet of Ministers 
of Ukraine, dated 12 October 2000). 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 59 Ukraine notes in its response to No. 23 that th e decisions of customs authorities regarding 
determination of customs values of goods may be  appealed under the procedure established by 
law. It is not clear, however, under which law th e detailed procedures a re established, and the 
exact nature of those procedures. We seek clarification from Ukraine as to the legislation or 
sub-legislative acts/norms that underpinning this procedure. 
Answer:
 
 Please see the Answer to Item 55. 
(i) Other customs formalities 
Item 60 We welcome the clarifications brought on customs clearance procedures.  However, for the 
moment, these procedures continue to pres ent real problems for business and further 
simplification is necessary.  We understand that  the new Customs Code and its implementing 
legislation will remove these problems and look fo rward to receiving copies of the implementing 
legislation, once available. 
Answer:
 
 Ukraine takes note of this request. 
(j) Pre-shipment inspection  
Item 61 
If Ukraine does not require any inspection services  prior to shipment, this should be made clear 
in the text of the factual summary. WT/ACC/UKR/110/Add.2 
Page 38  
 
 We seek a commitment indicating that if such services should be employed in the future, they 
will observe 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. 
Answer:
 
 Ukraine does not require inspection services prior to shipment.  Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
(l) Rules of origin  
Item 62 
Does the new Customs Code cover Rules of Orig in, both preferential and non-preferential? 
Does it contain provisions concerning the right to request an origin determination from the 
Government prior to shipment, and a commitment covering these provisions, i.e., the 
requirements of Article 2(h) a nd Annex II, paragraph 3(d), i.e. , that for non-preferential and 
preferential rules of origin, respectively, its customs authority will provi de upon the request of 
an exporter, importer or any person with a just ifiable cause an assessment of the origin of the 
import and outline the terms und er which it will be provided? 
Answer:
 
 The Customs Code governs non-preferential Rule s of Origin. Preferential Rules of Origin are 
governed by international treaties and agreements of Ukraine, for instance by the Rules for the 
Determination of a Country of Goods' Origin, whic h complies with the provisions of Article XXIV of 
GATT 1994. 
 The Code lays down the main criteria for determining a country of origin for goods, and 
provides that procedures on the basis of the Code shall be prescribed by the Cabinet of Ministers of 
Ukraine, which procedures will contain a rule, wher eby an assessment of origin of a good shall be 
provided by a competent governmental authority upon the request from an exporter or importer within the shortest period of time, but in no  even later than within 150 days. 
Item 63 Do Ukraine's preferential rules of origin for CIS reflect the interim rules of the WTO 
Agreement in Annex II of the Agreement? 
Answer:
 
 Ukraine applies Rules of Origin for CIS countri es that were adopted by a decision of the 
Council of Governments of the Commonwealth of Independent Countries on 30 November 2000. The said preferential Rules of Origin , which are applied by Ukraine to  goods originating from the CIS 
countries, comply with the provis ions of Paragraph 3 in Annex II of the Agreement on Rules of 
Origin. In particular: 
- Pursuant to Item 4 of the Rules, a change of tariff classification at the level of at least one 
of the first 4 digits in the HS, which change has occurred as a result of processing of a 
good, is named as the main criterion. This is a general rule that is applied to all goods that  WT/ACC/UKR/110/Add.2 
 Page 39 
 
 
 are described in the HS. The List  of Goods (which is an inseparable part of these Rules) is 
an exception, and the production and technological transaction rule or the ad valorem rule 
is applied to such goods. In this respect, goods specified in this List are enumerated on the 
basis of clear tariff classification that is co nsistent with the HS. That is, provisions of 
Sub-item і)(а) of Paragraph 3 in Annex II of the Agreement on Rules of Origin are 
complied with. 
- One of the criteria set forth in these Rules is  an ad valorem criterion that complies with 
the provisions of Sub-item іі) (а) of Paragraph 3 in Annex II of the Agreement on Rules 
of Origin, as the methodology of its calculation further is clearly defined in Item 4, in 
particular: 
- for imported materials – on the basis of customs values of such materials at the time 
such materials are brought into the country, wherein the final products are 
manufactured, or, if the origin of imported  materials is not known, on the basis of 
documentarily confirmed prices of their first sale within the territory of the country, 
wherein the final products are manufactured; 
- for final products – on the basi s of prices EXW of the seller. 
- The List of goods, to which the production and technological transaction rule and the 
ad valorem  rule are applied as mentioned above, fully complies with provisions of Sub-
item ііі)(а) of Paragraph 3 in Annex II of the Agreement on Rules of Origin, as criteria for 
transactions, under which preferential origin is granted, are clearly defined therein. 
- Sub-item (b) of Paragraph 3 in Annex II of the Agreement on Rules of Origin is also 
written down in Item 5 of the Rules, as the Item provides for a negative criterion 
(negative standard), i.e., the list of transac tions that do not comply with the criterion of 
sufficient processing of goods is provided. 
- Transparency in the publication of these Rules, which is specified in Sub-item ( с) of 
Paragraph 3 in Annex II of the Agreement on  Rules of Origin, has also been complied 
with, as these Rules were published in official gazettes and currently may be viewed in the Internet. 
- Also, the provisions of Sub-item (d) of Paragraph 3 in Annex II of the Agreement on 
Rules of Origin regarding rules for assessment of preferential origin upon a request from 
entities engaged in foreign trade are complied wi th. Such assessment is carried out either 
prior to or upon sale of a good by as spec ially designated authority (the Chamber of 
Commerce and Industry of Ukraine), whereupon a certificate of origin is issued that will 
be effective for three years. 
- Sub-items (e - g) of Paragraph 3 in Annex II of the Agreement on Rules of Origin are not 
expressly written down in the Ru les; however, these provisions have been reflected in the 
effective Customs Code and the new Customs Code of Ukraine (as to confidentiality of 
information, the right of appeal against d ecisions of customs authorities in court, and 
absence of retroactive force for rules that ma ke changes thereto (provisions are found in 
the Constitution of Ukraine)). 
Item 64 Does the "Decision of the Council of the Gove rnments of the Commonwealth of Independent 
States on the Rules for the Det ermination of a Country of Goods'  Origin" of 24 September 1993 
to meet the requirements of the WTO Agreement on Rules of Origin, including those in 
Annex II? WT/ACC/UKR/110/Add.2 
Page 40  
 
 Answer:
 
 The Decision 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 lost its force 
as from 30 November 2000.  
(k) Application of internal taxes on imports 
Item 65 Ukraine's response highlights a number of incons istencies in its excise taxation system with 
WTO requirements.  In particular, domestic production is afforded protection through reduced 
rates of excise tax compared to those applied to imports. We seek clarification as to the steps 
Ukraine is taking to remove this inco nsistency with Article III of GATT 1994. 
Answer:
 
Discrimination of goods of foreign origin as regards the levying of excise tax is actually 
provided for in current legislation and is of a temporary character. 
Application of preferential rates of excise tax in respect of wine products and brandies 
manufactured in Ukraine shall be valid until 1 January 2004. 
The Ministry of Economy and European Integr ation of Ukraine in concurrence with other 
ministries, has been drafting laws and/or amen dments to the Tax Code of Ukraine aimed at 
eliminating preferences for domestic automobile ma nufacturers that currently include the following: 
tax exemption from payment of excise tax on sales of automobiles. 
 Furthermore, the draft Tax Code of Ukraine as  approved 11.09.2001 in second reading by the 
Supreme Rada of Ukraine, provides, inter alia, for the harmonization of provisions in Chapter IV 
Value Added Tax and in Chapter V Excise Tax with the requirements of WTO Agreements.  The 
Ministry of Finance of Ukraine in concurrence with the State Tax Administration of Ukraine, 
conducts follow-up monitoring of the deliberations on  the draft Tax Code for the third reading at the 
Supreme Rada of Ukraine.  It is expected that th e Tax Code will be finally adopted in 2003 and will 
go into force on 1 January 2004. 
 - Excise Taxes  
Item 66 
We appreciate Ukraine's listing of excise taxes and other information on their application to 
domestic and imported goods in UKR/110 and UK R/110/Add.1.  Is this list comprehensive? 
Answer:  
 In Annex 8 we provide the comprehensive list of excise taxes as amended by the Law of 
Ukraine of 24 October 2002 No.195- ІV "On Introducing Amendments to Certain Laws of Ukraine on 
Taxation, Manufacture, and Circulation of Excisable Goods" and by the Law of Ukraine of 24 
December 2002 No.347- ІV "On Introducing Amendments to Certain Laws of Ukraine on Matters of 
Levying Tax on Excisable and Some Other Goods", and information on the application thereof to 
domestic and imported products.   WT/ACC/UKR/110/Add.2 
 Page 41 
 
 
 Item 67 
Are the rates listed applied to both domestic a nd imported goods? The response to item No. 26 
indicates that there are privileged rates of excise taxes applied. What are they? Please amend 
Annex 6 to indicate explicitly the rates a pplied both to domestic and imported goods. 
Answer:  
 Please see Answer to Item 66 and Annex 8. 
Item 68 Item No. 27 indicates that Ukraine recently exte nded discriminatory excise taxes on automobiles 
to 1 January 2007.  Is this correct? 
Answer:
 
 The Law of Ukraine of 24 May 1996 No. 216/96 "On Rates of Excise Tax and Import Duties 
on Certain Vehicles" provided for temporary ( until 1 January 2007) exemption from payment of 
excise duty on revenues from sales of passenge r and dual-purpose automobiles and motorcycles 
manufactured by Ukrainian enterprises of all form s of ownership.  Such exemptions extend to 
revenues from sales of vehicles manufactured  at Ukrainian enterprises from imported and 
domestically manufactured components, provided the annual output is no less than 1,000 automobiles or 1,000 motorcycles. 
 See also the answer to Item 69. Item 69 What is the status of the repeal of the tax and tariff privileges for domestic auto makers? 
Answer:
 
 In order to harmonize Ukrainian legislation on support for the automobile industry with the 
provisions of Partnership and Cooperation Agreem ent between Ukraine and the EU (PCA) and with 
the requirements of the World Trade Organization (W TO) a Draft Law is being prepared to introduce 
amendments to the Law of Ukraine "On Stimulation of Automobile Production in Ukraine". The draft 
law provides for: 
- determination of new criteria for providing privileges to the enterprises in the car 
industry; 
- elimination of privileges for the domestic en terprises with investment in car production, 
production of components and spare parts, in particular privileges in the form of: 
- exemption from VAT on imports (mailing) of goods used in the construction and 
manufacturing activity of the enterprise s with investment in car production, 
production of components and spare parts; 
- exemption from VAT and excise duty on sales of cars for enterprises with investment 
in car production, production of components and spare parts; 
- exemption from tax on land for enterpri ses with investment in car production, 
production of components and spare parts; WT/ACC/UKR/110/Add.2 
Page 42  
 
 - granting the following privileges to the enterprises producing car, components and/or 
spare parts thereto, according to the criteria set forth in Draft Law, for a period of five 
years form the moment of approval of their investment programs by the Cabinet of 
Ministers of Ukraine, but not later than 31 December 2008: 
- Exemption from income tax and on that part of income, that is re-invested into 
production; 
- Exemption from import duty on goods used in the construction, re-construction, 
technical re-equipment and modernization of production. 
Item 70 
Concerning efforts to amend the Excise Tax law to institute a uniform excise tax on alcoholic 
beverages, we do not understand the additional co mplex efforts to establish a promissory note 
and penalties. Please explain. In addition, plea se indicate the timeframe for the implementation 
of the amendments. 
Answer:  
 The Law of Ukraine, dated 24 December 2002, under No. 195- ІУ "On Amendments to 
Certain Laws of Ukraine on Taxation, Production and Circulation of Excisable Goods", which entered 
into force on 1 January 2003, sets a uniform privileged rate of excise tax in the amount of UAH 2 per 
1 liter of 100 per cent alcohol for et hyl alcohol (domestic and imported), which is used by health care 
organizations and institutions for purposes of the treatment and diagnostic process and 
accomplishment of laboratory tests as well as by pr oduction business entities, and temporarily, until 
1 January 2005 – for denaturated et hyl alcohol (technical alcohol), which is used by business entities. 
 In order to control that the alcohol mentioned in the above paragraph is used pursuant to 
designated purposes, the Law provid es for bank-avaled promissory notes, which are issued, prior to 
receipt of ethyl alcohol, by business entities for a period of 90 days for an amount calculated on the 
basis of the volume of alcohol purchased and the di fference between the full excise tax rate for ethyl 
alcohol and the privileged rate.  The tax promissory  note is considered repaid upon presentation of 
documentary confirmation that the ethyl alcohol  has been used for the designated purpose. 
 In the event that ethyl alcohol or denaturated ethyl alcohol (technical alcohol) is not used 
pursuant to designated purposes, such  business entities will be subject to a penalty in the amount that 
is calculated proceeding from amounts of ethyl alcohol or denaturated ethyl alcohol (technical 
alcohol) used for purposes other than those designate d and the excise tax rate specified in Article 1 of 
this Law (UAH 17.4 per litre of 100 pe r cent alcohol) as increased by 1.5. 
 - VAT  
Item 71 Item No. 30 indicates that sales of domestic automobiles are exempted from the VAT through 
1 January 2008, and that numerous other sectors,  from shipbuilding to aircraft to spacecraft, 
enjoy similar treatment. 
Ukraine should prepare draft notifications fo r these subsidies for Working Party review.  WT/ACC/UKR/110/Add.2 
 Page 43 
 
 
 Answer:  
 For more details on additional benefits in such  industries as motor car building, shipbuilding, 
aircraft construction and space ac tivity see answers 69, 96 and 105. 
 Ukraine is preparing a draft of notification on the existing subsidies according to the 
requirements of Article 25.1 of the Agreement on Subsidies and Compensation Measures, and expects 
it to be available very soon to the members of the Working Party. 
 See also the answer to Item 74. 
Item 72 
Item No. 31 lists additional VAT exemptions. Are these exemptions e.g., for medicines, provided 
for domestic and imported goods? 
Answer:  
 According to item 5.1.7. of the Law of Ukraine "On Value-Added Tax" No. 168/97 of 
3 April 1997 (with changes and amendments) medici nes registered in Ukraine in a law-established 
procedure shall be tax exempted. According to Article 9 of the Law of Ukraine "On Medicines" 
No.123/96 of April 4, 1996 (with changes and amendm ents) medicines (irrespective of the country of 
origin) shall be admitted for use in Ukraine upon their registration. 
 Item 5.5 of the Law of Ukraine "On Value-Added Tax" determines that exemption from 
taxation shall also apply to importing into the customs territory of Ukraine of the said products. 
 Thus, these tax benefits shall be applicable to medicines of both home origin and imported. Item 73 Item No. 32 describes numerous VAT exemptions fo r agricultural production.  The description, 
however, is very difficult to understand. It is im portant that these subsidies be reviewed, and we 
request Ukraine's assistance in clarifying the nature of the tax exemption mechanisms. 
Answer:
 
 Please see below responses to Items 74, 75, and 114. 
Item 74 
Ukraine's responses highlight a number of in stances where domestic goods are afforded 
protection through exemption from VAT not a pplied to like imported products. We seek 
clarification from Ukraine as to steps it will ta ke to ensure application of VAT will be fully 
consistent with the provisions of Article III:2 of GATT 1994. 
Answer:  
 The Draft Law "On Incorporating Amendments  to the Law of Ukraine "On Value-Added 
Tax" (registration No.1277-1) is included in the agenda of the third session of the fourth Verkhovna 
Rada of Ukraine.  The Draft has passed the first reading and is presently prepared for the second. WT/ACC/UKR/110/Add.2 
Page 44  
 
  Prepared legislative proposal s provide for canceling benefits, including those by industry 
attribute, in particular in shipbuilding, aircraft construction, as well as restricting exemption from 
taxation of sales of medicines and medical products  through establishing the list of vital medicines 
and medical products, to which benefits shall be applied. 
 In addition, it is proposed to cancel preferential tax treatment in agriculture, and introduce 
restricted collection treatment in the area of agricult ure and forestry or fishing. In the event of selling 
agricultural products (services) of own producti on by the subject of entrepreneurial activity to 
registered VAT payers the charge shall be establishe d in the size of 6 per cent – for agriculture, and 
4 per cent – for products (services) of forestry or fishing from the selling price, instead of the VAT 
zero rate. 
 The amendments contained in Draft Law No.1277-1 include: 
 - Medicines
 
 The Draft Law proposes to restrict exemption from taxation of sales of medicines and medical 
products.  The list of sales of vital medicines and medical products registered in Ukraine in duly 
established procedure that will be exempted from the value-added tax shall be approved of by the 
Cabinet of Ministers of Ukraine. 
 - Agriculture  
 The draft law proposes to cancel: 
- the norm providing for the value-added tax with  the zero rate for sales of live weight milk 
and meat to processing companies with regard  to producers of all forms of ownership and 
economic activity; 
- the norm providing for the value-added tax - subject to payment to the budget by 
agricultural enterprises of all forms of owne rship for sold milk, cattle, poultry, wool, as 
well as dairy and meat products, produced at own processing facilities - being kept for 
disposal of such agricultural enterprises and allocated for support of own production of 
cattle-breeding and poultry products; 
- the norm providing for the value-added tax - with regard to sales of products (works, 
services) of own production, including products (except for excisable) produced on the give-and-take basis from own agricultural raw materials, with the exception of sales of 
live weight milk and meat to processing enterp rises, carried out by agricultural producers 
irrespective of their organizational and legal form and ownership form - being kept at the 
disposal of agricultural producers and used by them for purchasing material and technical 
resources of production destination. 
 - Automobile industry
 
 The draft law proposes to ca ncel the value-added tax with  the zero rate for sales of 
automobiles, buses and component parts thereto of residents' own production that carry out their 
activities according to the Law of Ukraine "On Stim ulation of Automobile Production in Ukraine". 
 - Shipbuilding industry  
 The draft law proposes to cancel the VAT exemption for importation (forwarding) into the 
customs territory of Ukraine of materials, equipment and component assemblies (hereinafter referred 
to as products), used for building vessels (except for excisable products);  WT/ACC/UKR/110/Add.2 
 Page 45 
 
 
  It also cancels the VAT with the zero rate for sales of products produced by the specified 
shipbuilding enterprises at the expense of the State Budget of Ukraine. 
 - Aircraft construction industry  
 The draft law proposes to cancel the VAT exemption for importation (forwarding) into the 
customs territory of Ukraine of materials, componen t products and equipment (hereinafter referred to 
as products), except for excisable products, used fo r the needs of development, production of aviation 
machinery and providing services. 
 It also cancels the VAT exemption with the zero rate for sales of products (services), 
produced by the specified enterprises of aircraft construction industry at the expense of the State 
Budget of Ukraine. 
Item 75 
We seek clarification as to whether VAT is applied in full to all agricultural imports. If this is 
so, the VAT exemption made available to Ukrainia n producers of milk, livestock, poultry, wool, 
dairy and meat products, is also in violation of Article III:2 of GATT 1994.  We would 
appreciate details of Ukraine's timetable for eliminating these exemptions. 
Answer:  
 Two different special mechanisms of VAT ta xation of agricultural enterprises exist in 
Ukraine. T he first mechanism is a mechanism, un der which processing enterprises calculate and pay 
subsidies to agricultural producers of all forms of  ownership and business, including citizens' private 
household farms, for their sale to the processing en terprises of milk and meat in live weight, through 
use of 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 m eat.  This mechanism for subsidizing agricultural 
meat and milk producers, wherein VAT is used as a sour ce of financing, is applied for a period of lack 
of sufficient direct budget outlays.  This mechan ism is governed by Article 6 of the WTO Agreement 
on Agriculture and Annex III:2 of this Agreement,  pursuant to which subsidies shall include both 
budgetary outlays and revenue foregone by the governme nt or its agents for the benefit of agricultural 
producers.  The similar type of agriculture support, 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 subsidizing mechanism wo rks as follows: agricultural producers sell 
milk and meat in live weight to processing enterp rises of all ownership forms pursuant to concluded 
agreements, assessing VAT at a zero rate.  At th e same time, tax credit, which consists of VAT 
amounts paid by agricultural producers in conn ection with purchases of goods (works, services) 
whose costs are treated as their own gross production (trading) costs and capital assets or intangible 
assets subject to depreciation, is included in a ta xpayer'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 amou nts of subsidies for agricultural producers for milk 
a nd  m ea t  i n  li v e  wei g h t  t o  b e  so l d  b y s u ch  p ro d u cers, 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 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 that will be assessed for (transferred 
to) suppliers of goods (works, services), the cost  of such goods (works, services) being treated as 
gross production costs therefor, and the amount of subsidies payable to agricultural producers for their WT/ACC/UKR/110/Add.2 
Page 46  
 
 sold milk and meat in live weight per one hryvnia of such products' cost.  Processing enterprises 
confirm such estimates with applicable Agri cultural Departments of rayon (oblast) State 
Administrations, applicable instrumentalities in the Autonomous Crimean Republic; and enterprises 
that are part of the Ukrainian Cooperative Associa tion system confirm such estimates with consumer 
societies (associations of  consumer societies). 
The second measure of support through a special mechanism of VAT taxation is to 
accumulate VAT for procurement of material and te chnical resources for production of agricultural 
products. Pursuant to Article 11.29 of the Law of Ukraine "On the Value Added Tax", dated 
3 April 1997, under No. 168, agricultural enterprise s are exempted till 1 January 2004 from VAT with 
respect to transactions involving sales of goods (w orks, services) of their own production, including 
products (except for excisable goods) manufac tured under tolling arrangements with their 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 mechanism 
described above, irrespective of their organizational/legal forms and forms of ownership.  These 
exemptions are introduced for agricultural ente rprises 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 Re solution No. 374 of the Cabinet of Ministers of 
Ukraine, dated 23 April 2001), remaining tax liabilit ies 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 arrangements with agricultural producers' 
own agricultural raw materials, i.e., the difference between the VAT amount received by agricultural 
producers from buyers and the VAT amount paid by such producers to suppliers shall be transferred 
by the agricultural producers from current bank acc ount into separate bank accounts within time 
limits, within which VAT amounts must be transferred into the budget. An agricultural producer must open the said separate account during one reporting period. The balance of tax credit pursuant to the above referenced tax returns, i.e., a negative difference between the VAT amount received by 
agricultural producers from buyers 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 material-technical resources.  If funds are used 
for non-designated purposes, they shall be collected and transferred into the State budget in an indisputable manner. 
 This type of support through a mechanism for accumulation of funds for subsidizing 
purchases of material-technical resources for agri cultural production purposes, wherein VAT is used 
as a source of financing in case of lack of sufficie nt direct budget outlays, is governed by Article 6 of 
the WTO Agreement on Agriculture and Annex III:2 of  this Agreement. Pursuant to the provisions of 
the WTO Agreement on Agriculture, subsidies shall include both budgetary outlays and revenue 
foregone by the government or its agents for the benefit of agricultural producers.  This measure of 
support for agricultural producers is included in АСС /4 Tables for the period of 2000-2002. 
Item 76 
Furthermore, we are unable to see how VAT or other internal taxes (e.g., excise) could apply 
barter transactions, including barter transactions  between Ukrainian parties, and how in the 
presence of barter internal taxation measure co uld conform with the provisions of Articles I:1 
and III:2 of GATT 1994.  We understand that ba rter is still applied on a significant scale in 
Ukraine and, while the overall prevalence of barter has been reduced, it might affect up to  WT/ACC/UKR/110/Add.2 
 Page 47 
 
 
 20 per cent of transactions occurring between Uk rainian parties in the sugar sector, particularly 
between beet producers and proces sors/refiners.  (This is not taking into account toll refining 
activities.)  We would appreciate information on the steps Ukraine is taking to eliminate barter 
practices in internal and international trade, and when such steps are expected to be completely 
eliminated. 
Answer:  
 Pursuant to official statistical data (a bulletin of the Ukrainian Statistical Committee entitled 
"Sales of Products by Agricultural Enterprises in 2002"), the share of barter transactions in the overall 
volume of sugar beet sales in 2002 totaled 5 per ce nt, and the share of barter transactions in the 
overall volume of sugar sale s specifically by agricultural enterprises did not exceed 10 per cent in 
2002.  The Ukrainian Government has been taking pers istent measures to reduce barter transactions in 
sales of agricultural products.  The percentage of barter transactions in the sales of agricultural 
products has been significantly reduced over the past three years. 
 In accordance with Para. 7.1 of Article 7 of the Law of Ukraine "On Corporate Income Tax" 
the valuation of receipts and expenses associated with barter operations shall be determined based on 
the contractual price of such operations being ho wever not lower than the regular price; while in 
accordance with Para. 4.2 of Article 4 of the Law of  Ukraine "On Value Added Tax", in case of sale 
of goods (works, services) free of charge or on a ba sis of partial cash payment in the framework of a 
barter transaction, the taxation base shall be dete rmined based on the factual transaction price being 
however not lower than regular prices. 
 With the view of reducing barter transactions in Ukraine's commercial turnover, a special 
procedure of determination of tax liabilities and ta x credits being applied whereunder taxpayers' tax 
liabilities would arise as of the date of the first transaction whereas the right to a tax credit would arise 
as of the date of the balancing operation. Th e Law of Ukraine "On Amendments to the Law of 
Ukraine "On Value Added Tax"" of 16 January 2003 No.469-IV abolished this procedure and the 
dates of emergence of tax liab ilities and tax credit are determined  subject to general conditions. 
 The procedure governing completion of foreign economic transactions in case of payment 
subject to a barter arrangement is governed by  the Law of Ukraine No.351-XVI "On Regulation of 
Goods Exchange (Barter) Transactions in Foreign Economic Area" dated 23 December 1998. 
 The Law of Ukraine On the 2003 National Budget of Ukraine (Article 7) establishes that in 
case of goods (works, services) exported outside of th e customs territory of Ukraine as part of barter 
transaction, the total of the value added tax paid ( calculated) in connection with the purchase of goods 
(works, services) shall not give rise to an increase of tax credit and shall be included in the total of 
gross production (turnover) costs of the taxpayer. 
 As per official statistics (Compilation of the State Committee for Statistics Distribution of 
Produce by Agricultural Enterprises in 2002), the shar e of barter transactions in the overall volume of 
sugar beet distribution in 2002 was 5 per cent, distribution of sugar by agricultural enterprises on a 
barter basis accounted for 10 per cent in the total. 
 During the years 2000 – 2002 in economics there was observed the stable positive tendency to 
reduction of barter operation application in econo mic turnover of Ukraine.  Thus, if in 2000 the 
average share of barter operation application in industry totaled 18 per cent, in 2002 the share dropped 
sharply almost by four and a half times to negligib le sizes and amounted to 4.2 per cent.  During the 
first quarter of 2003 the share of industrial products  shipped on barter terms re duced almost to a half 
comparing to 2002 and reached the level of 2.2 per cent (Diagram 1). WT/ACC/UKR/110/Add.2 
Page 48  
 
  Diagram1 - Dynamics of barter operations in  Ukrainian industry during 1997 - 1 quarter of 
2003: 
42.5
32.7
17.118.3 19.235.739.242.4
4141.7
41.4
34.834.6
33.4
19.8
9.38.7 8.1 7.9
4.44.5 4.2 4.1
2.2
051015202530354045
ІІ quarter 1997 
ІІІ quarter 1997 
ІV quarter 1997 
І quarter 1998
ІI quarter 1998
III quarter 1998
IV quarter 1998
І quarter 1999
ІI quarter 1999
III quarter 1999
ІV quarter 1999
І quarter 2000
ІI quarter 2000
III quarter 2000
IV quarter 2000
І quarter 2001
ІI quarter 2001
III quarter 2001
IV quarter 2001
І quarter 2002
ІI quarter 2002
III quarter 2002
IV quarter 2002
І quarter 2003
 From the point of view of individual branches of industry, in 2002 the biggest share of barter 
scheme application fell on mining industry, 7.5 per cent, however, in the first quarter of 2003 it 
dropped by 1.9 per cent points, to 5.6 per cent.  In manufacturing industry the biggest share of barter 
operation application in 2002 was in production of other non-met allic mineral goods (building 
materials, glasswork) – 12.7 per cent, however, in  the first quarter of 2003 there was observed it's 
decrease almost by one and a half times, to 8.5 per cent.  The share of barter scheme application in machine building dropped almost by half, from 6.2 per cent in 2002 to 3.8 per cent in the first quarter 
of 2003. 
 Moreover, the main export-oriented sectors of  Ukrainian industry, namely, metallurgical and 
chemical sectors are characterized by the low share of application of barter schemes in settlements.  
Thus, the share of barter scheme application in  metallurgy and metal working decreased from 
1.7 per cent in 2002 to 0.6 per cent in the first quarter of 2003 or by almost three times, the share of 
barter scheme application in chemical and petroc hemical industries dropped from 4.9 per cent to 
2.7 per cent correspondingly, or by about two times (Table 8). 
Table 8
 
The share of application of barter schemes in settlements on basic industrial activities  
Share of application of barter schemes 
in settlements, 
% Branch of industry 
2002  1 quarter of 2003 
Mining 7.5 5.6 
Manufacturing, including: 3.8 2.2 
Food industry and farm product processing  3.2 1.6 
Light industry 7.5 4.1 
Forestry and woodwork 4.3 1.6 
Pulp and paper industry, polygraphic industry, publishing 1.1 1.1  WT/ACC/UKR/110/Add.2 
 Page 49 
 
 
 Share of application of barter schemes 
in settlements, 
% Branch of industry 
2002  1 quarter of 2003 
Chemical and petrochemical industries 4.9 2.7 
Metallurgy and metal working 1.7 0.6 
Machine building  6.2 3.8 
Production and distribution of electric energy, gas and water 3.3 1.1 
Total for industry  4.1 2.2 
 
- Application of barter and other compensati on schemes of settlements in external economic 
activities  
 During 2002 there was reduction of share of barter and compensation scheme application 
when carrying out of export-import operations.  At the same time, the share, which accounted for 
barter (compensation) operations of the all turnover for last years, constituted the tenth percent share. 
Thus, in 2002 the barter share in total volume of export and import of goods reduced by three 
times comparing to 2001 and amounted to 0.1 per cent. 
 The biggest in 2002 was the share of barter scheme application in import of metals and 
articles of metal and wood, and of pulp and pa per products, 0.6 per cent and 0.5 per cent 
correspondingly, however, at that, the unit weight of each mentioned branch of industry did not 
exceed 5 per cent of total import. 
 Moreover, in import of fuel and energy produc ts, which reached 37.4 per cent of total import, 
barter operations were almost not applied.  Expor t of metals and articles of metal in 2002, which 
constituted 39.7 per cent of total export, was also carried out without barter operation application, in 
export of machines and equipment (the unit weight in  total export is 14.7 per cent) the share of barter 
operation application was 0.1 per cent (Table 9). 
Table 9  
Share of barter settlement application in export-import operations  
Unit weight, % Share of barter 
operations in 2002, % Branch of industry with indication of product groups 
according to Ukrainian Classification of Goods of 
External-Economics Activity In total 
import In total 
export In total 
import In total 
export 
27 Fuel and energy products 37.4 9.1 0.0 0.0 
1-24 Foodstuffs and agricultural products 6.8 13.3 0.0 0.0 
25-26 Mineral products 2.4 3.3 0.1 0.1 
28-40 Products of chemical industry 12.9 9.3 0.4 0.4 
41-43 Hides, fur and wares  0.4 0.9 0.0 0.0 
44-49 Wood, pulp and paper products 4.7 3.2 0.5 0.5 
50-67 Textiles, textile goods, footwear 4.4 4.1 0.1 0.1 
68-70 Articles of stone, glass, ceramics 1.2 0.8 0.3 0.2 
72-83 Metals and articles of them 4.9 39.7 0.6 0.0 
84-90 Machines, equipment and transport 23.3 14.7 0.0 0.1 
91-97 Other goods 1.5 1.6  0.0 
Total 100 100 0.1 0.1 WT/ACC/UKR/110/Add.2 
Page 50  
 
  As for other compensation schemes of settlement s, it should be mentioned that the share of 
export of goods made on commission in total export reduced in 2002 comparing to 2001 by nine times 
and totaled only 0.1 per cent. 
 Over the first two months of 2003 there was obs erved the increase of export share of goods 
made on commission in total export, however, this i ndex stays at insignificant level of 0.3 per cent.  
At the same time, over a period of January-February of 2003 the unit weight of import of finished 
articles manufactured of goods made on commission in total volume of import reduced to 0.1 per cent 
comparing to 0.2 per cent for the same period of 2002. Volume of import of goods made on 
commission to Ukraine over two months of 2003 re duced comparing to a corresponding period of 
2002 by 7 per cent points from 7.7 per cent to 7.0 per cent. 
Item 77 It is our expectation that all VAT exemptions which have been granted to producers of milk, 
livestock, poultry, wool, dairy and meat produc ts, all differences in the rates and manner of 
application of VAT, excise and any other intern al taxes, and all barter trading practices, 
whether internal or cross-border, will be elimin ated before the date of accession, that Ukraine 
will commit to not revert to such measures or a llow such practices to re- emerge after accession, 
and that Ukraine will commit to apply all internal  taxes in full conformity with provisions of 
Articles I:1 and III:2 of GATT 1994 from the date of accession. 
Answer:
 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 78 
We note that Ukraine has started to address the problems created by the discriminatory 
measures affecting foreign investment.  We  understand that the new Tax Code will help 
eliminate the remaining problems and would unde rline the need for this legislation to be 
adopted and enacted as soon as possible. 
Answer:  
 Ukraine takes note of this concern.  Please also see the Answer to Item 80. 
- MFN application of VAT and excise taxes  
Item 79 
Has Ukraine altered its laws to ensure that all imports from all countries , i.e., including the CIS, 
are subject to VAT and excise tax equally?  If not, please specify which imports from which 
countries are exempted from VAT application upon  importation and indicate when this will be 
changed to meet the requirements of Article I.  
Answer:  
 The Cabinet of Ministers of Ukraine Resolution No. 745 of 27 June 2001 "On introducing 
amendments to Item 1 of the Cabinet of Minister s of Ukraine Resolution No. 13 of 5 January 1998 
cancelled the preferential value added tax on goods from the Customs Territory of the Russian 
Federation (starting from 1 July 2001), except as regards unprocessed oil, natural gas condensate and  WT/ACC/UKR/110/Add.2 
 Page 51 
 
 
 natural gas during importation into Ukraine. The Ca binet of Ministers of Ukraine Resolution No. 842 
of 13 July 2001 – added the following items to the list of goods subject to the preferential regime: fuel 
elements (cartridges), non-irradiated (Euratom  (code UCC FEA 8401300000) and rods with the 
capacitors and security and management rods (code UCC FEA 8401409000). 
This means that goods imported from the Russian Federation from 1 July 2001 onward are 
subject to VAT in accordance with the generall y applied procedure except the goods subject to 
continuation of preferential taxation regime. 
 Within the framework of the Agreement on general conditions for support and development 
mechanisms for industrial cooperatio n among enterprises and within industries by the CIS member 
States – signed in Azhgabad on 23 December 1993 (Azhgabad Agreement) – the parties shall not 
apply taxes and excise taxes with respect to the goods delivered in accordance with the cooperation 
arrangements involving temporary importation for processing. But the readymade goods produced in 
Ukraine through processing arrangements and sold within the territory of Ukraine shall be subject to 
taxation in accordance with th e generally applied procedure. 
Item 80 
Ukraine has indicated that the draft Tax Code of Ukraine in the Rada will harmonize VAT and 
Excise provisions with WTO norms. 
It is important for Ukraine to provide informat ion on the specific provisions that are in the 
draft Law and to work with delegations to identi fy and address outstanding issues. What is the 
status of the draft Law? 
Answer:  
 Reforming the tax system is an important component of Ukraine's economic reform.  The 
strategic purpose of tax reform is the creation in Ukraine of such a tax system that would promote 
production growth in the country, the increase in  consumption, the reduc tion in the scale of the 
shadow economy, adequate revenue flow to all levels  of budget, and the integration of Ukraine in the 
global world economy. 
 Proceeding from this, one of the key tasks of  the government and the parliamentary majority 
is the speedy adoption, within the first half of 2003, of the Tax Code of Ukraine that would provide 
for reforming the tax system, for transforming thereof from a purely fiscal instrument into an effective 
tool for social-economic strategies of the state. 
 The stipulations of the draft Tax Code of Ukraine shall provide for: 
- Step-by-step reduction of preferences and exemptions from general taxation granted on 
the basis of sector and professional characteristics; 
- Reduction of VAT rate to 15 per cent, and of income tax, to 25 per cent; 
- Reforming the system of taxation of incomes of  natural persons (reduction of tax levies, 
introduction, for the transition period, of a si ngle uniform tax rate of 13 per cent etc.); 
- Improvement of procedures for assessment and compensation of VA T, streamlining the 
procedure for tax payment administration, pu tting in due order the taxpayers registration 
procedures in order to prevent th e creation of fictitious companies; 
- Simplification of tax payment administration procedures, improvement of tax reporting; 
- Streamlining the tax assessment mechanisms  and reporting procedures for small-scale 
businesses; and WT/ACC/UKR/110/Add.2 
Page 52  
 
 - Adherence to the principle of non-discrimination in taxation of commodities of domestic 
and foreign origin. 
 The Government will take a set of measures to  provide for the enactment of the Tax Code on 
1 January 2004, upon the approval of the Supreme Rada, and for the reformation of the state tax 
service. 
Item 81 
We seek a commitment that from the date of accession, Ukraine's domestic taxes, including 
VAT and excise taxes, and other taxes applied to  goods, would be applied in compliance with 
Articles I and III of the GATT 1994, in a non-discriminatory manner to imports regardless of 
country of origin and to domestically-produced goods. 
Answer:  
 Ukraine is cognizant of the oblig ations of membership.  It expect s to deal with questions of its 
commitments in the context of preparation of the draft report of the Working Party.  
(m) Anti-dumping regime (n) Countervailing duty regime 
(o) Safeguard regime Item 82 
Item No. 34 addresses Ukraine's use of safeguard measures, based on the Law on Application of 
Special Measures Regarding Imports into Ukraine. 
The law does not appear to be WTO consistent , but is defended Ukraine. The Working Party 
should review the content and coverage of Ukraine's law as well as any implementing 
regulations. 
As it is clear that Ukraine intends to use su ch measures to regulate trade, we and other 
delegations will place great importance on devising an appropriate record in the protocol 
package that (a) addresses the conformity of  the Law and regulations with relevant WTO 
Agreements,(b) describes how Ukraine will apply th ese provisions in practice, and (c) provides a 
commitment that they will be applied in conformity with the WTO Agreements. 
Answer:
 
 Application of safeguard (special) measures is  a generally accepted mechanism of protection 
of internal market from mass imports.  These measures are used in International practice, and are a 
constituent part of the WTO Agreements, in  particular – the Ag reement on Safeguards. 
 The Law of Ukraine "On Application of the Measures of Safeguard against Imports to 
Ukraine" was drafted on the basis of the WTO Ag reement on Safeguards. However, the Law of 
Ukraine does not fully comply with the above mentioned WTO Agreement. 
 The review of the Ukraine Safeguards law shows that:  WT/ACC/UKR/110/Add.2 
 Page 53 
 
 
  Most of the provisions are not inconsistent and follow the WTO Safeguard Agreement. The 
general approach, time limits, notification, confidentiality, transparency, etc. conform. 
 But a few items are not consistent: 
- Although the Ukraine Law, Article 10, paragr aph 3 recognizes that factors other than 
increased imports may cause injury it does not re quire that injury from these other causes 
not be attributed to increased imports, as required in the Safeguards Agreement Article 
4.2.b; 
- Chapter IV that establishes a "Surveillance Meas ure" if the Ministry establishes a threat 
of serious injury during the course of the i nvestigation, which by necessity is before a 
final determination. No such measure is contained in the Safeguards Agreement; and 
- Article 16.3 requires the Commission to na me the countries of origin to which the 
definitive measure is applied. This is not consistent with the Article 2.2 of the WTO 
Agreement, which requires application to a prod uct irrespective of its source. (Article 9 of 
the SGA and Article 21 of Ukraine law do exempt developing WTO members from 
application). 
 Safeguard measures are applied by decision of the Interagency Commission on International 
Trade after the investigations conducted by the Ministry of Economy. Currently, Ukraine applies 
safeguard measures to imports of five commod ity items.  The acting safeguard measures were 
established in the form of quotas on imports of these goods into Ukraine.  More than 92 per cent of 
these imports, before the safeguards measures were applied thereto, were imported into Ukraine from 
countries which are not WTO members. 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
 Please see also the Answer to Items 83 and 84. Item 83 The reply to No. 34 states that Article 16 of the Law of Ukraine "On Application of Special 
Measures Regarding Imports into Ukraine" has certain differences from Article 5 of the WTO 
Agreement on Safeguards. Article 16 of the law st ates that the "boundary level of quotas shall 
not be higher than the average arithmetic value of imports under investigation, which have been 
carried out within the last three years." 
Answer:
 
 It is true, Article 16 of the Law of Ukraine "On Application of the Measures of Safeguard 
against Imports to Ukraine" provides that the "the top level of a quota shall not be higher than the average arithmetic value of imports to Ukraine under investigations, which have been carried out 
within the last three years".   
 That is, the level of quota can be defined as a normal volume of imports during the last three 
years, which is actually applied in practice. 
Item 84 Can Ukraine confirm that this provision is WTO compliant, as Article 5.1 of the WTO 
Agreement on Safeguards requires that the period "shall be the average of imports in the last WT/ACC/UKR/110/Add.2 
Page 54  
 
 three representative years for which statistics are available, unless clear justification is given 
that a different level is necessary to prevent or remedy serious injury"? 
Answer:
 
 The mentioned provisions of Article 16 of the Law of Ukraine "On Application of the 
Measures of Safeguard against Imports to Ukraine" do not fully comply with the provisions of Article 
5.1. of the WTO Agreement on Safeguards.  At the current moment a relevant law is being drafted in 
order to bring the provisions of the Law "On Application of the Measures of Safeguard against 
Imports to Ukraine" in line with the WTO requiremen ts.  However, in practice, the level of quota is 
defined as the average volume of imports during th e last three years, as stipulated by the WTO 
Agreement on Safeguards. 
Item 85 
We note from the reply to No. 35 in WT/ACC/UK R/110 that "the level of allocated protective 
quotas" in one instance was "approximately 2.5 ti mes below the average of imports in the last 
three representative years." How is that prac tice consistent with Article 5.1 of the WTO 
Agreement on Safeguards? 
Answer:  
 Point 5.1 of the WTO Agreement on Safeguards provides, that in case of clear justification a 
different level of quota may be applied that the average of imports in the last three years.  In the 
context of this provision the establishment by Ukraine of quota below the level of the average imports 
of the recent three years does not contradict the rules of WTO Agreement on Safeguards. 
 At the same time, it is worth mentioning that the level of quota is established on the basis of 
data provided by the State Customs Service of Ukra ine, which in some instances may differ from data 
of the exporting countries. 
 Along with this, a review is underway with re gard to safeguard measures applied to imports 
from WTO members (in particular, referring the impor t into Ukraine of goods made of polyurethane, 
decision of the Interagency Commission on International Trade No.SP-70/2003/52-49 of 31 March 2003) in order to bring them into compliance with the WTO Agreement on Safeguards. 
2. Export Regulation Item 86 Ukraine's very high export duties on live animals and hides and skins clearly have a trade-
distorting impact on the market within Ukraine, and a detrimental impact on the importation of 
meat and other products.  We request that thes e export duties be eliminated by the date of 
accession and that Ukraine commit not to a pply such export duties after accession. 
Answer:
 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party.  WT/ACC/UKR/110/Add.2 
 Page 55 
 
 
 Item 87 
In its response to No. 37, Ukraine did not address the part of the question on minimum export 
prices. Is it true, as it is claimed, that Ukraine imposes minimum export prices, as well as export 
duties, on exports of live animals, hides and sk ins?  It is our expectation that any minimum 
export prices will be eliminated by the date of  accession, and that Ukraine will commit to not 
apply or revert to minimum export prices after accession, and thereby ensure conformity with 
Article 4 of the Agriculture Agreement and Article XI:1 of GATT. 
Answer:  
 The term "minimum export prices" is not used  in Ukraine's effective legislation. The terms 
"minimum level of indicative pric es" or "indicative prices" are used. 
 Currently, indicative prices are set for the following list of agricultural products: bovine 
animals live, sheep live, bovine leather wet-salted and otherwise preserved (Group 4101 pursuant to 
the UCG FEA), sheep skins wet-salted, flax seeds ground or non-ground, sunflower seeds ground or 
non-ground, red flax seeds. 
 Currently, indicative prices for agricultural products are set by the Ministry of Economy and 
on Issues of European Integration of Ukraine only for those products, for which export duties are 
prescribed. Indicative prices are introduced in order to ensure that rates of export duties are effective. 
The above listed products that are brought out of Ukra ine's customs territory are to be sold at prices 
not lower than the indicative prices. 
 In setting the indicative prices, the Ministry takes into account product quality standards 
effective in Ukraine, delivery and payment terms as are recognized in international practices and specified by Ukrainian law, conditions of the fo reign and domestic market structure, pricing 
information (average levels of prices that exist in a given geographic market, and forecasts as to 
possible price fluctuations), contract practices with respect to a give product, and other information on 
market structure and price matters. 
 Contract prices for all other products in th e area of foreign economic activity are set by 
Ukrainian entities engaged in foreign economic activ ities on a contractual ba sis, taking into account 
demand and supply, as well as factors that exist on applicable markets at the time contracts are entered into.  
 Article XI:1 of GATT 1994 does not apply to bans or restrictions on exports that are 
temporarily applied in order to prevent a serious sh ortage of products that are of critical importance 
for an exporting country. 
(c) Quantitative export restrictions Item 88 
We agree with the checklist points that Ukraine' s export restrictions and duties on nonferrous 
scrap and sunflower seeds appear to engage WTO provisions. 
Does Ukraine still maintain licensing restrictions on ferrous and nonferrous waste and scrap? WT/ACC/UKR/110/Add.2 
Page 56  
 
 Answer:
 
 According to Points (d), (g), (i) of GATT Ar ticle XX, Ukraine applies export restrictions with 
regard to non-ferrous metal (export duty), and prohibi ts the export of scrap ferrous metal. Licensing is 
not applied. 
 Ukraine believes that at this time it is prematur e to consider an issue of elimination of export 
duties on seeds of oily cultures. Export duties on sunflower seeds were introduced by Law of Ukraine No. 1033, dated 10 September 1999, as a temporar y measure till 1 July 2002. Pursuant to Law of 
Ukraine No. 2555, dated 21 June 2001, the level of  rates of export duties on sunflower seeds was 
reduced to 17 per cent ; however, the term of effect  of such export duties is not currently restricted. 
The Government will prepare amendments to Law of  Ukraine No. 1033, dated 10 September 1999, to 
specify a term of effect for export duties, in orde r to reinstate the temporary nature of such duties. 
Item 89 
We seek elimination of restrictive measures that cannot be justified under WTO, and the 
traditional commitment to apply such measures in  the future in conformity with the GATT and 
WTO. 
Answer:
 
 Ukraine is cognizant of the obligations of WTO membership. It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
(d) Export licensing procedures Item 90 In relation to fees for issuing licences, Ukraine states a number of fees derived as a proportion 
of individual income in Ukraine or as a share of transaction value. Article VIII of GATT 1994 
states that all fees or charges relating to impo rting (including in relation to licensing) shall be 
limited in amount to the approximate cost of services rendered. Can Ukraine explain how its 
license fee structure meets this criterion? What step s is Ukraine taking to ensure consistency of 
these fees with the provisions of Article VIII of GATT 1994 before accession? 
Answer:
 
 The amount of a fee for issuing a product import license totals UAH 255, which corresponds 
to costs associated with the issuance of the license (see the response to Item 52). 
 As regards the amount of a fee for issuing an export license, such amount is equal to 0.1 per 
cent of the value of the export contract. 
Ukraine is cognizant of the obligations of WTO membership. It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 91 In relation to fees associated with exportation, Ukraine also states a number of fees derived as a 
share of transaction value. Article VIII of GATT 1994 states that all fees or charges relating to 
exporting (including in relation to customs cl earance) shall be limited in amount to the 
approximate cost of services rendered. Can Ukraine explain how its license fee structure meets  WT/ACC/UKR/110/Add.2 
 Page 57 
 
 
 this criterion?  What steps is Ukraine taking to ensure consistency of these fees with the 
provisions of Article VIII of GATT 1994 before accession? 
Answer:  
 As regards the amount of a fee for issuing an export license, such amount is equal to 
0.1 per cent of the value of the export contract. 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 92 
Ukraine has not indicated the nature of the action  it will take to address its WTO-inconsistent 
policies in relation to exports of live animals,  hides and skins, non-ferrous metal scrap and 
sunflower seeds.  We request that Ukraine rem ove these export restrictions by the date of 
accession and that it commit not to introduce or revert to any such export restrictions after 
accession in order to maintain conformity with Article XI:1 of GATT 1994 and, in view of the 
discriminatory effect such restrictions may ha ve on imported products, with Article III:4 of 
GATT 1994 and Article of the Agriculture Agreement. 
Answer:  
 Please see reply to Item 88 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
(e) Export financing, subsidy and promotion policies  
Item 93 
Ukraine has not provided any tables on export subs idies.  Does this mean that Ukraine does not 
use export subsidies?  Is Ukraine ready to undertake a commitment to not use export subsidies 
upon accession? 
Answer:  
See answer to Item 94. 
Within the framework of the negotiation process for purposes of WTO accession Ukraine has 
announced that it is ready to undertake a commitment upon accession not to use export subsidies for 
agricultural exports. 
Item 94 We seek a commitment from Ukraine that from the date of accession it will not maintain 
subsidies, including export subsidies which met the definition of a prohibited subsidy, within the meaning of Article 3 of the Agreement on Subsi dies and Countervailing Measures and that it 
will not introduce such prohibited subsidies in the future, and that export financing and other 
export promotion policies will be operated  in conformity with WTO provisions. WT/ACC/UKR/110/Add.2 
Page 58  
 
 Answer:
 
Ukraine has already been supplying very full information on its subsidies as part of its 
massive documentation that supports its accession ap plication and that it will, after accession, notify 
its subsidies as all WTO Members are expected to. 
3. Internal policies affecting foreign trade in goods 
(a) Industrial policy, including subsidy policies Item 95 
We support the statements in item No. 42 conc erning Ukraine's subsidies.  We have clarifying 
questions, and a suggestion, that Ukraine prepared draft notifications of the identified 
programs as a way of informing the Working Party on this issue. 
Answer:
 
 Please see the answer to Item 94. 
- Subsidies for shipbuilding, mining, and energy:  
Item 96 
Please describe the industrial subsidies Ukrain e introduced in 1999 fo r the shipbuilding and 
mining industries.  Do these subsidies apply to all sectors of the mining industry, including iron 
ore and coal? 
Answer:  
- Subsidies for the ship-building industry  
Subsidies for the ship building industry are prov ided in compliance with the Law of Ukraine 
"On Measures of State Support for the Ship-Building Industry in Ukraine" as of 18 November 1999, No. 1242-XIV (including changes and amendments  introduced in accordance with the Law of 
Ukraine as of 13 December 2001, No. 2892-III). The objective for providing subsidies to the ship 
building industry is an efficient use of the prod uction, research and development (scientific and 
technical) potential of domestic ship building and the upgrading of competitiveness, as well as 
facilitating the attraction of investme nts including foreign investments, scaling down the cost of ship 
building and increasing the level of the turnover fu nds of the ship building enterprises.  The time 
period of state support measures starts on 1 January 2000 and ends on 1 January 2005. 
 Subsidies are provided in the following forms: 
- Deferred tax payments, in particular, 
- amounts of advance payments for the ship building industry obtained from the clients 
ordering ships may be allocated to separate accounts of such enterprises and shall not 
be subject to the withholding procedure without consent and shall be used only for 
purposes of targeted use in compliance with the Contract obligations of the above-
specified enterprises. Such amounts shall be included as a part of gross revenues of 
such enterprises for purposes of profit cal culation subject to taxation in accordance 
with the Law of Ukraine "On Corporate Income Tax" at the moment of transferring  WT/ACC/UKR/110/Add.2 
 Page 59 
 
 
 the ship to the client and expenditures of th e ship building enterprises. The enterprises 
own expenditure in accordance with the target allocation – shall be included in gross 
expenses for purposes of income calculati on subject to taxation in the tax period 
when the gross revenues are increased by the amounts of the respective payments. 
- Exemption from payment of customs duty during importation into the Customs Territory 
of Ukraine of the materials, equipment and assembling parts (hereinafter – goods), used 
for purposes of ship building in case such goods are not produced by the enterprises 
within the territory of Ukraine or in case such produced goods do not comply with the 
Certification requirements of the Internat ional classification partnerships or do not 
comply with the requirements of the Clients and with the identified Contract provisions. The Cabinet of Ministers of Ukraine shall approve on an annual basis lists of such goods 
(except for excisable goods). 
- Exemption from payments of the land tax. 
- VAT exemption for transactions of importatio n (shipment) into the Customs Territory of 
Ukraine of materials, equipment and assembling parts (hereinafter – goods), used for purposes of ship building (except for excisable goods), in case such goods are not produced by enterprises within the territory of Ukraine or in case such produced goods do 
not comply with the Certification require ments of the International classification 
partnerships or do not comply with the requi rements of the Clients and with the identified 
Contract provisions. The Cabinet of Ministers of Ukraine shall approve on an annual 
basis lists of such goods (except for excisable goods). 
- Zero rates of value added tax regarding the ta xation of transactions on sales of products 
produced by the specified ship  building enterprises, at the expense of funds of the State 
Budget of Ukraine. 
- VAT exemption for the design and development works performed by the domestic 
designers (developers) in accordance with the Contracts of the specified ship building 
industrial enterprises for purposes of ship building. 
- The Cabinet of Ministers of Ukraine, bearing in mind the results of the operations of the 
ship building enterprises, shall approve th e list of ship building enterprises regarding 
application of the above-mentioned measures, ex cept as regards enterprises registered in 
(free) economic zones. The foll owing is the list of enterprise s adopted in accordance with 
the Cabinet of Ministers of Ukraine Resolution of 16 June 2000, No. 978 (including changes and amendments introduced by the Cabi net of Ministers of Ukraine Orders as of 
21 August 2001, No. 1106 and as of 27 May 2002, No. 696) (see the Table). 
 Please see Annex 9 for the list of the ship building enterprises receiving the benefit of the 
state support measures. 
- Subsidies to the Coal Mining Enterprises
 
Beginning on 1 January 2002 State Support to Coal Mining Enterprises is provided in 
accordance with the new procedure approved by the Re solution of the Cabinet of Minister of Ukraine 
No. 1733 of 27 December 2001 "On approval of pr ocedure for identification and provision of the 
State support to the Coal Mining Enterprises". (Resolution of the Cabinet of Ministers of Ukraine 
No. 26 of 6 January 1999, in accordance with which State Support was provided to the Coal Mining Enterprises for the period up to 1 January 2002 has been cancelled). 
 In accordance with the new procedure, State Support at the expense of the State Budget is 
provided to Coal Mining Enterprises (hereinafter – Enterprises) with substant ial production reserves 
of quality coal but unable to support production with their own funding (in case reconstruction of such 
enterprises is economically viable). WT/ACC/UKR/110/Add.2 
Page 60  
 
  This procedure shall not apply to enterprises ma king profits from opera tions or to enterprises 
being prepared for liquidation. 
 The scope of State Support of enterprises and the respective target use of such support is 
governed by the Law on State Budget of Ukraine for the corresponding year.  In the year 2002 such 
expenditures were specified in the budget in the amount of UAH 850,000 and for the year 2003 – 
UAH 830,000. 
 State Support shall be provided directly to enterprises for purposes of reimbursing expenses 
related to the cost of production of coal pr oducts and related to capital investments. 
 The Ministry of Fuel and Energy shall identify the planned cost of production of the coal 
products and the scope of expenditures for the cap ital investment on the basis of materials provided 
by the State Holding Companies, Production Uni ons and enterprises regarding the elements and 
directions for application of industry norms (approved production capacities, norms of the work load 
with respect to the preparation of  mines, work load norms, material and power resources and so on) 
and taking into account the need for measures to improve work productivity and reduce production 
expenditures. 
 The planned cost of production of coal products , and the extent that expenses are covered by 
income, shall be identified for each enterprise on the basis of target s for production of coal products 
introduced by the Ministry of Fuel and Energy and Meeting the target ensures the maximum 
economic efficiency. 
 The Ministry of Fuel and Energy approves on an annual basis the coal quality indicators for 
purposes of identification of production amounts. 
The Industry Commission established by Ministry of Fuel and Energy pe rforms assessment of 
the results of activity of enterprises. 
The assessment is performed on the basis of: 
- the economic indicators; 
- the production potential; 
- financial plans of enterprises; and 
- results of business plan competitions wi th regard to capital investments. 
As a result of such assessment the Industry Commission annually distributes enterprises into 
three groups: 
- Group 1 – enterprises able to obtain profits sufficient to continue production activities. 
- Group 2 – enterprises possessing substantial quality coal reserves but unable to continue 
production activities independently and the re construction of which is not economically 
viable. 
- Group 3 – enterprises to be prepared for liquidation in connection with the depletion of 
their coal reserves and enterprises with rese rves of quality coal the reconstruction of 
which is not economically viable. 
State support for enterprises of the second group takes the form of compensation, the amount 
of which is calculated on the basis of planned sales. 
State support is only granted on the basis of business plans as well as in accordance with state 
programs for the capital constr uction and approved projects.  WT/ACC/UKR/110/Add.2 
 Page 61 
 
 
 Item 97 
Concerning the mining and electricity industries,  please explain whether these industries are 
fully or in part publicly held. Please explain the pricing structure of electricity and oil in 
Ukraine. 
Answer:  
 The share of state-owned mining industries of Ukraine is presented in the Table below: 
Table 10  
Founders  
Ministry for Industrial Policy of Ukraine and the State Property Fund of Ukraine  
Stucture of the State Joint Stock Company "Ukrrudprom"  
No. Industry Sector Open Joint Stoc k Companies Share of State Ownership 
Iron-ore complex OJSC "Kryvbaszalizoprom" 100 % 
 OJSC "PVP Kryvbasvybukhprom" 100 % 
 OJSC "Sukha Balka" 25.1 % 
 OJSC "Pivdennyi GSK" 25.78 % 
 OJSC "Pivnichnyi GSK" 50 % + 1 share  
 OJSC "Tsentralnyi GSK" 50 % + 1 share 
 OJSC "Inhuletsky ГЗК" 50 % + 1 share 1. 
 OJSC "Kryvbaszalizoprom" 100 % 
Flux and limestone 
processing complex OJSC "Balaklava RU named after 
O. Horky" 100 % 
 OJSC "Dokuchayivsky FDK" 100 % 2. 
 OJSC "Novotroyitsky RU" 100 % 
 
Table 11  
Number of joint stock companies founded in the energy sector on the  
premises of state-owned companies by extent of private ownership  
(as of 1 April 2003)  
Share of private capital in total capital 
Industry sector Total under 25 
% from 25 % to 
50 % from 50 % to 75 % from 75 % to 100 
% 
Energy 34 8 10 7 9 
 
Table 12  
Energy sector companies privatization plans for 2003  
Industry Sector Number of companies 
whose majority or 
blocking blocks of shares 
are intended for tender 
sale at the stock exchangeBalance sheet value of 
fixed assets , mn. 
Hryvnias Number of employees 
Energy  3 167.10 10,985 WT/ACC/UKR/110/Add.2 
Page 62  
 
 With regard to pricing in electric energy, please see the Answer to Item 12. 
With regard to prices in oil refining we note that they are not regulated by the State, but are 
being formed on a market basis. 
Item 98 Natural gas prices in Ukraine are about one-th ird the world market price. In addition, we 
understand that the Government of Ukraine is considering supplying nitrogen fertilizer producers at even lower prices to both reduce f ertilizer production costs and to supply fertilizer 
to agriculture at lower prices. Please explain th e nature of these subsidies in terms of Ukraine's 
overall natural gas pricing strategy. 
Answer:
 
 State purchase orders for chemical fertilizers based on envisaged energy price reductions (gas, 
electricity, transportation etc.) were abolished as  of 2000 by the Resolution of the Cabinet of 
Ministers of Ukraine of 12 October 1998 No.1 953 On Provision of Material and Financial Resources 
to Agricultural Producers in 1999. 
- Steel  
Item 99 
Please provide a full list of the types of subsidies the steel sector benefits from (both publicly and 
privately held companies). 
Answer:  
 Subsidies were provided as part of an econom ic experiment at enterprises of the mining and 
smelting sector from 1 July 1999 till 1 January 2002.  Due to the expiry of the experiment's term and 
the expiration of effect of the Law of Ukraine, dated 14 July 1999, No. 934-XIV, "On the Conduct of 
the Economic Experiment at Enterprises of the Mini ng and Smelting Sector in Ukraine", subsidies are 
not provided in 2003. 
Item 100 
Regarding publicly-held steel companies, please explain what plans, if any, Ukraine has to 
privatize those companies.  What kind of plans or  initiatives does Ukraine have with regards to 
privately held steel companies? 
Answer:  
 Only one steel company, State Steel Company "Kryvorizhstal'", is publicly-owned. Currently, 
the issue of privatization of this  Company is not being considered. 
Item 101 
In general, are there any plans to reduce capacity in the steel industry?  WT/ACC/UKR/110/Add.2 
 Page 63 
 
 
 Answer:  
 A National Program for Development and Refo rmation of the Mining and Smelting Sector in 
Ukraine by the year 2010 has been developed and is pending consideration in the Supreme Rada of 
Ukraine. Simultaneously with the modernization and renewal of capital assents, the Program provides 
for reducing excessive capacity. 
Item 102 
Concerning the steel industry, please provide a full list of the types of subsidies the steel sector 
benefits from (both publicly a nd privately help companies). 
Answer:  
 See the response to Item 99. 
- Indirect Subsidies  
Item 103 How many credits from extra-budgetary funds  has the Ukrainian government issued to 
enterprises?  What were these credits for?  What criteria do enterprises need to meet in order to 
receive these credits? 
Answer:
 
 There are at present no extra-budgetary funds granting credits to enterprises. Item 104 To what extent has the Ukrainian government provided coal as reserves for thermal power 
plants?  On what terms was coal supplied to this  particular industry?  Were they market terms? 
Answer:
 
 In 2002, energy-generating companies did not obtain coal as reserves from the Government of 
Ukraine.  Coal stocks for the autumn-winter pe riod of maximum loads was accumulated by thermal 
power plants through purchases of coal with their own funds and loans from banks. 
Item 105 
In recent years what industries have received pref erential tax treatment?  Why is preferential 
tax treatment given to these industries?  What were the criteria for industries to receive such a 
special tax treatment? 
Answer:  
 The preferred tax treatment wa s granted to enterprises of certain industries (motor car 
construction, shipbuilding, aircraft building, space industry), and to those operating in special 
economic zones. 
 As to the preferred tax treatment in shipbuilding, see the answer to Item 96. WT/ACC/UKR/110/Add.2 
Page 64  
 
  The preferred tax treatment in motor car cons truction introduced by the Law of Ukraine "On 
Stimulation of Production of Motor Cars in Ukraine" No. 535/97-VR of 19 September 1997 (with 
changes and amendments) with the purpose of securing  conditions for attraction of investments in the 
domestic motor car construction. For the period to  1 January 2008 the following benefits shall be 
granted to enterprises pr oducing motor cars, buses and component parts on the basis of registered 
investments (including foreign) exclusively in a monetary form, in the amount of at least 
US$150 million – in production of passenger cars; at  least US$30 mln. – in production of trucks and 
buses; at least US$10 million – in production of component parts to motor cars and buses: 
- exemption from import duty while importing into the customs territory of Ukraine 
according to the Law of Ukraine "On Stimulation of Production of Motor Cars in Ukraine" of products (including car assemb lies) with identificatio n of codes under the 
Ukrainian classification of products of foreign economic activity; the procedure and 
volumes of importing of such products shall be determined by the Cabinet of Ministers of 
Ukraine, unless such products are produced within the territory of Ukraine; 
- exemption from the land tax. The land area exempted from taxation, shall be determined 
based on the amount of a monetary investment to the authorized fund of such enterprises. 
One hectare of land shall be exempted for each US$400 thousand of investment exchange 
rate, established by the National Bank of Ukraine on the day of making such an 
investment (including foreign); 
- exempted from the value-added tax shall be transactions on bringing in (forwarding) into 
the customs territory of Ukra ine according to the Law of Ukraine "On Stimulation of 
Production of Motor Cars in Ukraine" of products (including car assemblies), used for construction and production activity of such enterprises. The list of products (including 
car assemblies) with identification of codes un der the Ukrainian classification of products 
of foreign economic activity, as well as the procedure and volumes of importing of such 
products shall be established by the Cabinet of  Ministers of Ukraine, unless such products 
are produced within the te rritory of Ukraine; and 
- transactions on sales of motor cars, buses and component parts of residents' own 
production that operate under the Law of Ukraine "On Stimulation of Production of 
Motor Cars in Ukraine" shall be charged w ith the value-added tax at a zero rate. Such 
resident producers shall be under the obligati on to have an investment program approved 
of by the Cabinet of Ministers of Ukraine. 
 The preferred tax treatment in aircraft cons truction introduced by the Law of Ukraine "On 
State Support of Aircraft Construction Industry in Ukraine" No. 2660-III of 12 July 2001 with the 
purpose of securing favorable conditions for effe ctive use of production, science and research 
potential domestic aircraft construction, modernization of aircraft enterprises, promoting investment 
activity, including foreign investment activity, and increasing the competitivene ss of home aircraft, 
engines and aviation equipment. The following tax be nefits shall be granted to aircraft industry 
enterprises for the period from 1 January 2002 to 1 January 2007: 
- delay in tax payment, particularly: amounts of advance and preliminary payments under 
the contracts of aircraft industry enterpri ses, received from product (service) customers 
shall be added to separate accounts of these en terprises, and be used only under the target 
destination according to the contractual obliga tions of the said enterprises. These monies 
shall be included in gross incomes of enterpri ses with the purpose of identifying the profit 
subject to taxation in accordance with the law of Ukraine "On Taxation of Enterprise 
Profit" at the moment of delivery of products (services) to the customer, and expenses of 
aircraft construction enterprises, made against advance and preliminary payments 
according to their target destination, shall be  included in the total costs with the purpose 
of identification of the profit subject to taxa tion in the tax period, on which falls the date 
of an increase of the gross income by the amount of the said payments.  WT/ACC/UKR/110/Add.2 
 Page 65 
 
 
 - exemption from the customs tariff while importin g into the customs territory of Ukraine 
of materials, component products and equipment (hereinafter referred to as products) used 
for the needs of development, production of aviation machinery and providing services by 
enterprises, unless such products are also pr oduced within the terr itory of Ukraine, or 
those produced do not meet international clas sification requirements or requirements of 
customers of products (services), stipulated by terms of contracts. The list and volumes of 
such products (except for excisable) shall be annually approved by the Cabinet of 
Ministers of Ukraine. 
- exemption from the land tax; and 
- exemption from the value-added tax for import ing (forwarding) into the customs territory 
of Ukraine of materials, component products and equipment (hereinafter referred to as products), except for excisable products, used  for the needs of development, production of 
aviation machinery and providing services, un less such products are also produced by 
enterprises within the territory of Ukraine, or those produced do not meet international 
classification requirements or requirements of  customers of products (services), stipulated 
by terms of contracts. The list of volumes of such products shall be annually approved by 
the Cabinet of Ministers. 
 The preferred tax treatment of subjects of space activity shall be granted according to the Law 
of Ukraine "On State Support of Space Activity" No . 1559-III of 16 March 2000 with the purpose of 
preserving and effective use of the existing scientific and research, production potential of the space 
industry as a priority component of the high technology sector of the economy in order to secure national interests.  The following tr eatment shall be applied to such en terprises during the period up to 
1 January 2009: 
- import duty shall not be charged while importing into the customs territory of Ukraine of 
products, used for production of space machinery (including units, systems and their 
components for space complexes, space carrier rockets, space vehicles and land segments of space systems), unless such products are also produced within Ukraine. The list of these products, except for excisable products, as well as the procedure and volumes of 
their importing shall be determined by the Cabinet of Ministers of Ukraine. 
- exemption from the land tax; 
- sales of space complexes, space carrier rockets, space vehicles, land segments of space 
systems and their units, systems and components, produced by subjects of space activity shall be exempted from the value-added tax; and 
- imports by subjects of space activity into th e customs territory of Ukraine of products, 
used for production of space machinery (including vehicles, systems and their 
components for space complexes, space carrier rockets, space vehicles and land segments 
of space systems), shall be exempted from the value-added tax, unless such products were 
produced within Ukraine. 
 The preferred treatment to enterprises in sp ecial economic zones is described in document 
WT/ACC/UKR/110/Add.1, Annex 9. 
Item 106 Which industries are exempt from paying compulsory payments to the budget, such as the 
Pension Fund and Social Insurance Fund?  Why were these industries al lowed to be exempt? 
What criteria was involved in determining whic h industries were to be  exempt from these 
payments? WT/ACC/UKR/110/Add.2 
Page 66  
 
 Answer:
 
 Please see the answer to Item 105.  The laws that provide for state support to priority 
industries do not envisage exemption from payments to the Pension Fund and the Social Insurance 
Fund. 
Item 107 
Which private and state industrie s, in recent years, have und ergone debt-restr ucturing or 
received write offs from the Ukrainian government? 
Answer:  
 In accordance with the Law of Ukraine "On Procedures for the Repayment by Taxpayers of 
Arrears to Budgets and State Target Funds" da ted 21 December 2000 No. 2181, tax arrears were 
written off for all insolvent debtor enterprises.  The measures was a on ce-only action in 2001 
undertaken in connection with the accumulation of ba d debts that had adverse affect on the financial 
status of taxpayers and the enforcement of which could hardly be expected to be possible. 
 In accordance with the Law of Ukraine "On Writing off and Restructuring Outstanding Tax 
Debts of Taxpayers that Are Enterprises in Tr actor and Combine Harvester Production Sector" 
No. 1698 – ІІІ of 20 April 2000, the following was done: 
- Amounts of fines and other penalties and financ ial sanctions not paid to budgets and state 
target funds, assessed as of the date of enactment of this Law on tax arrears (VAT, 
enterprise profit tax, personal income tax, land tax, allocations for the Chernobyl 
Consequences Liquidation and Population Social Protection Fund, and charges and duties 
for the construction, maintenance and repair of general purpose automobile roads) were 
written off; 
- Tax arrears were restructured for 60 months beginning from 1 January 2003, of the 
following enterprises: 
- OJSC Kharkiv Ordzhonikidze Tractor Works; 
- OJSC Kharkiv Tractor Engines Factory; 
- OJSC Serp I Molot (Kharkiv); 
- OJSC Kupyansk Foundry; 
- OJSC Lozivka Mechanical Forging Factory; 
- OJSC Chuhuyiv FuelDevices; 
- OJSC Derhachiv Turbo-compressor Factory; 
- OJSC Kharkiv Factory of Self-Propelled Tractor Tool-Carriers; 
- OJSC Vinnytsia Tractor Assembly Factory; 
- OJSC Khmilnyksilmash (Khmilnyk); 
- OJSC Kovelsilmash; 
- OJSC Rozhyshchesilmash; 
- KVP Dnipropetrovsk Combine Harvester Factory; 
- State Enterprise Southern Machine-Building Works; 
- OJSC Novohrad-Volynsksilmash; 
- OJSC Olevsk Tractor Plant Standards Factory; 
- OJSC Vibroseparator (Zhitomyr); 
- OJSC Guliaypolesilmash (Guliaypole); 
- OJSC Orsilmash (Orikhiv); 
- OJSC First of May Factory of Agricultural Machinery (Berdiansk); 
- OJSC Design Bureau Berdiansksilmash;  WT/ACC/UKR/110/Add.2 
 Page 67 
 
 
 - OJSC Melytopol Tractor Hydro-Assembly Factory; 
- OJSC Melytopol factory Avtohidroagregat; 
- OJSC Kolomiyasilmash; 
- OJSC Agromash (Ivano-Frankivsk); 
- CP Kiyivtraktorodetal; 
- OJSC Bilotserkivsilmash; 
- OJSC Boreks (Horodianka); 
- OJSC Red Star (Kirovohrad); 
- OJSC Vira-Servis (Oleksandriya); 
- Concern Lan (Oleksandriya); 
- CJSC Avtoshtamp (Oleksandriya); 
- CJSC Luhansk Crankshaft Factory; 
- OJSC Factory Lvivsilmash; 
- OJSC Fregat (Mykolayiv); 
- OJSC Kamyaniy Most Factory of Agricultural Machines; 
- OJSC Odesa Factory of Agricultural Machines; 
- OJSC Galeshynmashzavod (Town of Nova Galeshyna); 
- OJSC Rivne Tractor Assemblies Factory; 
- OJSC Rivnesilmash (Town of Vasyliv); 
- OJSC Okhtyrsilmash; 
- OJSC Sumy Agricultural Machine Building Factory; 
- OJSC Ternopil Combine Harvester Works; 
- OJSC Avtramat (Kharkiv); 
- OJSC Kherson Combine Harvesters; 
- OJSC ADVIS (Khmelnitskiy); 
- OJSC Kamyanets-Podilsksilmash; 
- OJSC Shepetivka Cultivator Factory; 
- OJSC Umanfermmash; 
- OJSC Tsybulivsilmash; 
- OJSC Nizhyn Agricultural Machine Building Factory; 
- OJSC Prylukyzhyvmash; and 
- OJSC Chernivtsi Agricultural Machine Building Factory. 
 In accordance with the Law of Ukraine "O n Writing off and Restructuring Tax and Duty 
Arrears (Mandatory Payments) of Taxpayers in Co nnection with Reforming Agricultural Enterprises" 
No. 565-ІІІ of 16 March 2000 the following was done: 
- Amounts of tax and duty arrears (mandatory payments) to budgets at all levels, including 
amounts of fines (with the exception of fine amounts levied for late settlement of foreign 
exchange balances associated with extern al commercial transactions), penalties and 
financial sanctions imposed according to law,  as of 1 May 2000, were written off in 
respect of collective and other agricultural enterprises of all ownership and operation 
forms, including: 
- Sugar beet seed-growing facilities and sugar -refineries; chicory-drying facilities; state 
pedigree breeding farms and stations; state stud farms; state seed farms; enterprises for processing flax, hemp, and hops; mixed fo dder factories; service and maintenance 
enterprises (transport and agricultural mach inery maintenance, agrochemical services, 
logistics facilities), inter-farm construction facilities, veterinary facilities, research 
institutions of the Ukrainian Academy of Agrarian Sciences and its experimental 
facilities, agricultural educa tional establishments and tr aining-experimental facilities 
thereof, hybrid selection centers and variety testing stations, fish-breeding and fishing 
farms, as well as collective and other agri cultural enterprises transformed into private WT/ACC/UKR/110/Add.2 
Page 68  
 
 enterprises, private farms, associations of farmers, agricultural cooperatives, and other 
economic subjects (hereinafter "private formations"), and became assignees of such 
enterprises, or where a liquidation order has be en issued in respect of such enterprises. 
- Amounts of tax arrears to the State Budget of Ukraine, including fines imposed as of 
1 May 2000, of produce purchasing, processing, and service enterprises, when those 
enterprises have granted loans to agricultural producers in accordance with the relevant 
Government decisions in the period between 1996 and 1999, with the purpose of 
financing the acquisition of material an d technical resources,  were written off. 
- Debts to State Reserve of sugar beet sector enterprises for loans under the relevant 
Government decisions in 1994 through 1999 used to pay for material and technical 
resources, were rescheduled, to be repaid in equal installments during a period of 60 
months beginning from 1 October 2004. 
 In accordance with the Law of Ukraine On In troducing Amendments to  Article 2 of the Law 
of Ukraine On Writing off the Debts of the Op en-type Joint Stock Company AvtoZAZ No. 2318- ІІІ 
of 22 March 2001, bills payable we re written off as a bad debt of the Open-type Joint Stock company 
AvtoZAZ  in respect of credit guaranteed by the Cabinet of Ministers of Ukraine and paid out by 
Ukreximbank from a German credit line, complete with  interest on this credit and fines imposed for 
non-payment. 
 In accordance with the Resolution of the Cabinet of Ministers of Ukraine On Additional 
Measures Regarding the Restructuring of the Remainin g Debt of the Kiev State Factory Burevisnik in 
Respect of Financial Assistance Given in Accordance  with the Resolution of the Cabinet of Ministers 
of Ukraine of 10 August 1995 No. 626 of 26 September 2001 No. 1233, the remaining debt of the 
Kiev State Factory Burevisnik in the amount of UA H 820 thousand in respect of refundable financial 
assistance given in accordance with the Resolu tion of the Cabinet of Ministers of Ukraine of 
10 August 1995 No. 626, was rescheduled until 2005.  In addition, amounts charged as payment for 
moratorium interest were written off, and the resche duled debt shall not be subject to indexation and 
interest assessment. 
 The Resolution of the Cabinet of Ministers of Ukraine On Measures to Redeem the Arrears of 
Reformed Agricultural Enterprises in Payments fo r Consumed Electricity of 28 July 2000 No. 1179 
recommended the Ministry of Fuel and Energy, jointly with the Council of Ministers of the 
Autonomous republic of Crimea, oblast state Administrations, and energy-supplying enterprises, to 
take an inventory of outstanding debts of reformed  agricultural enterprises for consumed electricity 
and to take the necessary organizational steps to effectuate the rescheduling of the debts in question 
for a period of five years, providing for the beginning of repayment, in cash form, on 1 January 2001, 
in equal semi-annual installments, conditional on timely payment of current electricity bills. 
- General  
Item 108 
To what extent has the Ukrainian government financed measures aimed  at price regulation? 
Answer:  
 The list of goods and services, the prices of wh ich are subject to regula tions, is given in the 
answer to Item 2 and in Annexes 1 and 2. Ukraine is examining the question of whether governmental 
financial measures are associated with any of thos e price regulations, and will inform members of the 
Working Party of the results of this examination.  WT/ACC/UKR/110/Add.2 
 Page 69 
 
 
 Item 109 
To what extent and to what industries has the Ukrainian government given budgetary credit 
support to capital investments?  And from thos e budgetary credits given, how many were given 
to enterprises facing temporary difficulties? 
Answer:  
 According to the Ukrainian Laws on State Budget in 2000 – 2003, the following amounts 
were allocated for state investments: 
Table 13  
UAH million 
Years 
Target 2000 2001 2002 2003 
State investments in the 
implementation of the Chernobyl construction program  41,253.0  58,600.0 54,780.0  24,780.0  
State centralized investments 33,6576.0  360,920.1 490,000.0 175,000.0 
 
 The procedures for the funding of capital development at the expense of State Budget, as well 
as the list of objects to be financed out of State Budget, are established by the Resolutions of the Cabinet of Ministers of Ukraine of 27 December 2001 No. 1764 On Approval of the Procedure for 
State Funding of Capital Development and of 25 November 1999 No. 2145 On Procedure for the 
Competitive Assessment and Selection of Investment  Projects Involving the Allocation of Funds from 
the State Budget. It is not allowed to allocate  budget funds to commercial operators declared 
bankrupt, or in respect of  which bankruptcy proceeds have been in stituted, or which are in the process 
of liquidation, or have suspe nded their economic activities. 
Item 110 
Has the Ukrainian government given credit support for the purchase of agricultural products? Answer:
 
 State credits/loans for procurement of agricu ltural products are not extended. In order to 
encourage commercial credit for agricultural enterprises, beginning in 2000 the Government 
introduced, at the expense of State Budget funds, a scheme of partial compensation of interest rates 
for credits from commercial banks extended to agricultural enterprises.  The state budget for 2003 
foresees the expenditure of UAH 145 million for the reduction of interest rates on commercial bank 
loans to enterprises in the agro-industry complex. 
Item 111 
Please describe any separate budgetary funds set up by the Ukrainian government to finance 
certain sectors of the economy? 
Answer:  
 Currently, the Government of Ukraine has not set up any budgetary funds to finance any 
sectors of the national economy. WT/ACC/UKR/110/Add.2 
Page 70  
 
 Item 112 
It is our understanding that Ukraine's government assistance programs, such as the Economic 
Experiment, aim to aid steel and mining companies.   It is also our understanding that Ukraine's 
industrial sectors are supported by variou s government programs. For example, our 
information indicates that the steel and iron ore industries rely on low-interest rate loan 
programs and tax incentives. 
Please explain whether Ukraine has any plans to phase-out these types of assistance programs 
for the steel and mining industries. 
Answer:
 
See the response to Item 99 (regarding mining and smelting enterprises) and the response to 
Item 96 (regarding coal-mining enterprises). 
As regards government assistance programs, Order No. 182- р of the Cabinet of Ministers of 
Ukraine, dated 31 March 2003, approved a Concept for restructuring the system of government 
subsidies granted to sectors of the national economy.  The Concept provides for bringing the existing 
system of government subsidies, which are granted to sectors of the economy, into conformity with 
the norms and rules of the WTO Agreements, an d for preparing a draft law of Ukraine on 
Government Assistance. 
Item 113 Does the Ukraine government plan on opening up the steel and mining sectors to private 
investment? If yes, what procedures  are being taken prior to accession? 
Answer:
 
 The steel industry is open to private investment. At this point, all metallurgical enterprises 
with the exception of the Kryviy Rih State Mining  and Ore Processing Enterprise Kryvorizhstal are 
privately-owned. 
Item 114 
We understand that tax exemptions exist in the chemicals, pharmaceuticals, construction and 
agricultural sectors of Ukraine. Please describe the nature of these exemptions. 
Answer:  
 The description of special mechanism of VAT taxation in agriculture is provided in the 
response to Item 75. 
 As to benefits in chemical industry, according to the Law of Ukraine "On Taxation of 
Enterprise Profit" chemical industry enterprise s with fixed assets put into operation before 
1 January 1993 and used for carrying out econo mic activity, were entitled up to 1 January 2003 to 
attribute to gross costs of the reporting (tax) period the costs of modification of such fixed assets in an 
amount not exceeding 9 per cent of the asset value of the category of such fixed assets before the 
beginning of the reporting (tax) year. 
 As to tax benefits in construction, accord ing to the Law of Ukraine "On Amending Some 
Legislative Acts of Ukraine due to Adoption of th e Law of Ukraine "On Perf orming an Experiment in  WT/ACC/UKR/110/Add.2 
 Page 71 
 
 
 Housing Construction on the Basis of Kyivmiskbud Holding Company" (item 22.25 of Article 22 of 
the Law of Ukraine "On Taxation of Enterprise Profit") No. 1694-III of 20 April 2000, for the period 
up to 1 January 2006: 
- costs, attributed by business entities to housing savings accounts of individuals as a result 
of contractual relations with such individuals,  shall be included in the total costs of the 
taxpayer in an amount not exceeding 10 pe r cent of its total income for the reporting 
period; and 
- deposits directed by authorized banks to the special reserve for long-term savings deposits 
shall be added to the total costs of such banks. 
 As to tax benefits related to pharmaceutic al products, according to the Law of Ukraine 
No. 168/97 of 3 April 1997 (with changes and amendments) "On Value-Added Tax" (subitem 5.1.7 of 
item 5.1, and item 5.5) sale s transactions, as well as importing into  the customs territory of Ukraine of 
medicines and medical products registered in Ukrain e under the due procedure shall be tax exempted.  
Item 115 
Does Ukraine maintain any subsidie s for other industrial sectors? 
Answer:  
 See  Answers to Items 95, 96, 99, 105, and 107. 
Item 116 
We would like to see a description of Ukraine's subsidy system in the factual summary, and 
Ukraine's confirmation that any subsidy progra ms would be administered in line with the 
Agreement on Subsidies and Countervailing Measur es and that all necessary information on 
programs to be notified, if such exist, woul d be provided to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the Agreement upon accession. 
Ukraine should prepare notifications for thes e subsidies, and provide them to the Working 
Party for review. 
Answer:  
 See response to Item 94. 
 Ukraine is cognizant of the obligations of WTO membership. It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
(b) Technical regulations and standards  
Item 117 
The information provided in item Nos. 45-55 is encouraging, but we remain concerned that 
requirements and restrictions remain in the ar ea of conformity assessment and the mandatory 
standards/technical regulations that Ukraine has inherited. 
Specifically, how does conformity assessment work  for goods imported from countries that do 
not have an MRA with Ukraine. Can their laboratories qualify for testing? WT/ACC/UKR/110/Add.2 
Page 72  
 
 Answer:
 
 Pursuant to the Law of Ukraine "On Conformity Assessment", dated 17 May 2001, under 
No. 2406- ІІІ, conformity shall be confirmed by accredited certification organizations of any form of 
ownership, which are authorized to engage in su ch activity in the legislatively regulated sphere. 
Ukrainian residents only may act as au thorized certification organizations. 
Subject to confirmation with the specially authoriz ed agency of executive power in the area of 
conformity assessment, authorized certification orga nizations are entitled to enter into agreements for 
mutual recognition of conformity assessment wo rk with authorized organizations from other 
countries. 
As of 1 May 2003, in the area of standardization, metrology and certification there are in 
effect 34 bilateral agreements with  26 countries, out of which 15 have been concluded at an inter-
government level. For instance, the Ukrainian Ce nter for Testing and Certification of Electric 
Equipment (UkrTEST) has entered into agreements fo r mutual recognition of conformity assessment 
work in the area of electrical equipment in  Germany, Poland and the Czech Republic. 
Item 118 
What steps is Ukraine taking to review mandatory  standards and technical regulations in place 
or WTO consistency?  What does the response to item No. 49 mean?  How long will it take to 
fully review these existing mandatory requirements? 
Answer:  
Mandatory certification of products is prescribed by the Law of Ukraine "On Protection of 
Consumer Rights", the Law of Ukraine "On State Regula tion of Imports of Agricultural Products", the 
Law of Ukraine "On Labor Protection", the Law of Uk raine "On Quality and Safety of Foodstuffs and 
Raw Food", the Law of Ukraine "On Communications ", the Law of Ukraine "On Highway Traffic", 
the Law of Ukraine "On Transport", the Law of Uk raine "On Permissible Activity in the Area of 
Nuclear Energy Use", the Law of Ukraine "On Tourism" etc. 
The List of Products subject to Mandatory Ce rtification in Ukraine, approved by Order 
No. 498 of Derzhspozhivstandart, dated 30 August 2002, has been drawn up on the basis of these Laws. 
Pursuant to the Law of Ukraine "On Standardization", upon introduction of mandatory 
technical regulations on conformity assessment, sta ndards that fall under the effect of such regulations 
shall become voluntary. 
Article 5 of the Law of Ukraine "On Standardi zation" names priorities in the implementation 
of international and regional standards in Ukraine as  one of the principles of State policies in the area 
of standardization. Approximately 80 per cent of the national standards adopted during the years 
2001-2002 are identical to interna tional standards.  In the event of adoption of EC standards as 
national standards, preference shall be granted to EC standards that are identical to international 
standards.  As of 1 May 2003, Ukraine has in effect 1,090 national standards harmonized with international standards, out of which 293 had been adopted by 2000, 457 – during 2001 and 340 – in 2002.  It is planned to harmonize 500 standards during 2003.  In general, more than 8,000 standards 
need to be implemented. 
 In order to ensure compliance with the basic principles of conformity assessment that are used 
in international practices, in particular applic ation of product conformity assessment modules  WT/ACC/UKR/110/Add.2 
 Page 73 
 
 
 depending on potential risks for human and animal life and health, as well as for property and 
environmental protection, there have been prepared 11 draft technical regulations on standardization 
and conformity assessment for specifi c types of products, in particular: 
- on conformity assessment modules that are used in technical regulations, and rules for 
granting, use of and marking with conformity marks; 
- for the safety of toys; 
- for electric household refrigerating devices; 
- for the safety of low-voltage equipment; 
- for electromagnetic compatibility; 
- for non-automated weighing devices; 
- for the safety of gas appliances; 
- for the safety of boilers operating on liquid fuel; 
- for the safety of simple vessels operating under pressure; 
- for the safety of equipment operating under pressure; and 
- for the safety of lifts. 
 Upon adoption of technical regulations and standards that fall under their effect, the List of 
Products subject to Mandator y Certification in Ukraine will be gradually reduced. 
 In order to further harmonize product certific ation procedures in Ukraine with international 
procedures, to bring Ukraine's regulatory acts into c onformity with the requirements of the Agreement 
on Technical Barriers to Trade, Order No. 633 of Derzhstandart, dated 18 August 1998 No. 633, "On 
Approval of Procedures for Accomplishment of Works concerned with Certification of Foreign 
Serially Manufactured Products" has been repealed. From now on, certification organizations will 
carry out works concerned with certification of foreign products that are manufactured serially 
pursuant to rules for mandatory certifi cation of particular types of products. 
 As regards the response to Item No. 49, we clarify that no inspection of imported goods is 
applied. A conformity certificate is  required in the event of importation of goods that are subject to 
mandatory certification. 
Item 119 
We agree with the points in item No. 50, and we urge a specific response, point by point, from 
Ukraine. 
Answer:  
− Ukraine implement the action plan to gradually make technical regulations, 
standards, certification procedures a nd labelling requirements compatible with 
WTO obligations by the time of accession; 
Concerning fulfillment of action plan aimed at gradual bringing of the procedures for 
technical regulation, standardizati on, certification and marking requir ements into compliance with the 
WTO obligations prior to Ukraine's accession to the WTO, please see answers to paragraphs (b)-(j), 
as well as other answers on these subjects. 
− Producers should be given a choice be tween different conformity assessment 
procedures to meet legal re quirements depending on the ri sk to consumers, workers 
and others. Options should include manufacturers' declaration for low to medium 
risk products. For higher risk products, where third party certification is WT/ACC/UKR/110/Add.2 
Page 74  
 
 demonstrably necessary, ISO 9000 quality certification should constitute an 
alternative to costly and time-consuming plant inspections; 
 Pursuant to Articles 9 through 11 of the Law of Ukraine "On Conformity Assessment", 
conformity assessment shall be legally possible acco rding to two schemes, which take into account a 
degree of risk.  These schemes are the following: 
- declaration on conformity; or 
- certificate of conformity. 
Within transition period, prior to intr oduction of technical regulations, the UkrSEPRO certification 
system shall operate. This syst em shall establish six certification schemes, in particular: 
- certification of a single article; 
- certification of a group of (products) articles; 
- certification of products manufactured seri ally (without examination/inspection of 
production; 
- certification of products with examination/inspection of production; 
- certification of products with attestation of production; and 
- certification of products with assessment of a quality system or certification of a quality 
system. 
 An applicant shall have the right to choose th e specific scheme of certification, depending on 
its possibilities. And the certification authority shall determine the final scheme.  In such situation, 
peculiarities of production, testing, supply and us e of specific products, potential expenses of the 
applicant, as well as the results of review and analysis of the a pplicant's submitted materials (with 
consideration of the applicant's requests concerni ng the certification scheme) shall be taken into 
account. 
 Certification of conformity under a module approach shall provide for, among others, the 
availability of certified system of quality, which meets ISO 9000 standards. 
− Ukraine's recently confirmed commitment to introduce the "modular approach" 
along is welcome. Members expected the new law "on confirmation of conformity" 
to reflect these commitments. The determination of the modules applicable to each 
product category should reflect risk levels ; 
The Law of Ukraine "On Conformity Assessment" contains the main principles of state 
policy.  A principle of harmonization of the natio nal normative and legislative acts on conformity of 
conformation with the international ones is among the said principles. A "module approach" is 
reflected in Article 10 of the said Law as a possib ility to declare conformity.  A "module approach" is 
also reflected in other normative and legislative act,  in particular: the draft technical regulations on 
modules of the procedure for assessment of confor mity and principles of marking with the national 
sign of conformity which have to apply in technical  regulations on conformity.  The said draft has 
passed the internal examination.  It shall be a pproved by the Government's decision in the nearest 
future. 
Depending on the level of risk, it is provided for application of the relevant module of the 
procedures for conformity assessment. Thus, for prod ucts with low level of risk, it is provided for 
application of module A, i.e., declaration of conformity in accordance with the results of domestic 
control of production.  WT/ACC/UKR/110/Add.2 
 Page 75 
 
 
 − Members also urged Ukraine to amend the draft law on supplier's liability in order 
to ensure its full compatibility with WTO obligations; 
Taking into account that significant changes in  applicable laws of Ukraine have taken place 
since the time of submission and approval as  the basis of the draft Law of Ukraine "On 
Responsibilities of Suppliers for Low-Quality an d Dangerous Products," the Supreme Rada of 
Ukraine on 16 January 2003 (Resolution No.461-IV) decided to cancel its previous decision on approval as the basis of th e draft law of Ukraine on responsibilit y of suppliers for production and sale 
of low-quality and dangerous products. In this regard , the Cabinet of Ministers of Ukraine is preparing 
for submission to the Supreme Rada of Ukraine of  draft Laws of Ukraine on responsibilities for 
defective products and general safety of products. 
− In addition, Ukraine should take steps with  a view to developing effective market 
surveillance arrangements, which members viewed as the best way to ensure the protection of the health and safety of consumers; 
The draft Laws of Ukraine "On Responsibility  for Defective Products" and "On General 
Safety of Products" are worked out in order to ensure transition to the mechanism of market 
observation and surveillance. 
- Members also welcomed the first moves to reduce the list of products subject to 
compulsory certification, but urged Ukraine to review the list with a view to removing remaining lower risk products. They reques ted that Ukraine indicate what, if any, 
requirements apply to products taken off the list. In order to increase transparency, and 
also requested Ukraine to provide detailed lists of the products that are no longer 
subject to mandatory certification and of those that remain subject to it; 
 As of 23 May 2003, the List of Products which are subject to Mandatory Certification in 
Ukraine, approved by the Order of Derzhspoz hyvstandard (State Committee for Consumer's 
Standards of Ukraine), No. 498, dated 30 August 2002,  is in effect. At the same time, the Law of 
Ukraine "On State Regulation of Import of Agricultura l Products" (Article 4) sh all require a certificate 
of conformity for products of 1-24 groups of the Harmonized System. 
Currently, activities in relation to revision of the List of Products which are subject to 
Mandatory Certification in Ukraine are actively unde rtaken in order to exclude those products that 
have low degree of risk. The said revision  is planned to be carried out annually. 
− Ukraine should make sure that fees corresponded to the costs of services in 
accordance with GATT article VIII and ensure that all agencies (such as customs 
inspection at the border) were fully aware of technical regulations for imports and 
carry out verifications of certificates and documents expeditiously; 
 Rules for determination of costs of works on conformity assessment (Resolution of the 
Cabinet of Ministers of Ukraine, No. 485, dated 11 April 2002) shall provide for calculation of such 
costs in through the index of labor required.  The said Rules provide for the same expenses in relation 
to the same goods regardless of their country of origin, as well as correspondence of the payment for 
works on assessment of conformity to costs of se rvices rendered.  This meets Article VIII of GATT 
1994 and Article 5 of the TBT Agreement. 
 All controlling authorities, including Derzhmytsluzhba ( State Customs Service of Ukraine ), 
shall have access to the Register of UkrSEPRO state certification system. WT/ACC/UKR/110/Add.2 
Page 76  
 
  In order to ensure fulfillment of obligations on inspection of certificates and other documents 
without delays by customs authorities, the Procedure for Customs Clearing of Goods which are 
Subject to Mandatory Certification determined by  the Resolution of the Cabinet of Ministers of 
Ukraine, No. 1211, dated 4 November 1997 (with subsequent changes and amendments), shall apply. 
− Members requested Ukraine to consult interes ted parties on draft legislation and to 
give industry sufficient advance notice to comply with new rules to avoid trade disruption. To this end, Ukraine shou ld ensure that forthcoming technical 
regulations, standards etc. were published well in advance of entry into force, as well 
as fee schedules and standard processing times for conformity assessment 
procedures, as foreseen by the WTO TBT Agreement; 
Applicable laws shall require that the rule s and procedures for development, approval, 
revision, change and termination of national standards established by the central authority of the executive power in the field of standard ization must provide for the following: 
- criteria for taking into account or refusal of suggestions in relation to development of the 
national standards; 
- criteria for determination of develo pers of the national standards; 
- priority to the application of in ternational (regional) standards; 
- mechanism for appeal; 
- informing interested parties of the status of works in the field of national standardization. 
The period for consideration of the draft na tional standard and submission of opinions 
shall not be less than 60 days from the date of its publication; and 
- giving access to drafts of national standards to all interested parties on equal terms and 
conditions. 
 The Information Center of GATT/WTO attached  to Derzhspozhyvstandard of Ukraine shall 
ensure transparency in development and approval of standards and technical regulations that is 
mandatory requirement for fulfillment the TBT Agreem ent.  The said Information Center shall reply 
to requests and notifications of trade partners pursuant to the rule s of DSTU (State Standard of 
Ukraine) 1.13-2002 "The Rules for Provision of Trade Partners of Ukraine with Notifications." 
 Draft technical regulation can be found at Derzhstandard web-site www.dstu.gov.ua . 
 A technical program on standardization shall be  published twice a year. It can be found at 
Derzhstandard web-site www.dstu.gov.ua .  It is published in Bulletins of informative materials on 
standardization, metrology and certificatio n issued by Derzhstandard of Ukraine. 
 Such an approach complies with the requ irement of the Code of Good Practice on 
development, approval and application of standard s (clauses J, L and M) and Article 10 of the TBT 
Agreement. 
− Members requested Ukraine to report on a regular basis on progress towards setting 
up a fully functioning "enquiry point"; as requested by the Agreement; 
 Providing for transparency in the development and adoption of standards and technical 
regulations is the obligatory condition for implemen tation of the TBT Agreement, and is being carried 
out by the Information Center GATT/WTO under the Derzhspozhyvstandart of Ukraine, that provides 
answers to questions and notifications of trade part ners with regard to the rules of DSTU 1.13-2002 
"Rules for the Provision of Information to the Trade Partners of Ukraine".  WT/ACC/UKR/110/Add.2 
 Page 77 
 
 
  There is the Derzhspozhyvstandart's web-page in Internet ( www.dstu.gov.ua ), where you can 
find the Laws of Ukraine "On Conformity Assessment", "On Standardization", "On Accreditation of 
the Conformity Assessment Bodies" (in Ukrainian,  Russian and English languages), the List of 
Products (Services), which are Subject to Obligato ry Certification in Ukraine, the adopted normative-
legislative acts on implementation of the new la ws, the draft technical regulations on conformity 
assessment as they are drafted, the technical program of works on standardization in Ukraine. 
− Ukraine should also take steps to avoid th e creation of multiple testing requirements 
by different public author ities (e.g. by establishing a one-stop shop). 
 18 March 2003 the Law of Ukraine "On Amendment of Some Legislative Acts of Ukraine" 
No. 540-IV of 20 February 2003 came into effect. It  is aimed at the elimination of duplication of the 
controlling functions of the central bodies of the executive power and introduction of the procedure for conformity assessment (declaring the conformity and certification) of products according to the 
International practice.  The Law amends the Law of Ukraine "On Veterinary Medicine", the Decree of 
the Cabinet of Ministers "On State Supervision ov er Adherence to Standards, Norms and Rules and 
Liability for the Violation Thereof" and to the Ca binet of Ministers Decree "On Standardization and 
Certification".  The Law is drafted in order to implement the Presidential Decree No. 797 of 
5 September 2001 "On  Additional Measures on Acceleration of the Accession of Ukraine to the 
World Trade Organization". 
Item 120 
What is Ukraine's system  for developing and applying standards and technical regulation, with 
a focus on describing its system for ensuring compliance with the provisions of the Agreement? 
Answer:
 
 The system for developing and applying standards and technical regulations is defined by the 
provisions of the Law of Ukraine "On Standardiz ation" and the Law of Ukraine "On Conformity 
Assessment". A detailed analysis of the consis tency of the said Laws  of Ukraine with the 
requirements of the TBT Agreement will be pr ovided to members of the Working Party. 
 Please see also the Answer to Item 119. 
Item 121 
We need more information on the harmonizatio n of national standards with international 
standards. 
Answer:  
 With regard to approval of national standards within years 2001 and 2002, about 80 per cent 
of them are identical to international standards.   While approving European standards as national 
ones, priority is given to those European standard s which are identical to international ones.  For 
example, this is the case with regard to low-volt age equipment (IEC standards), toys, quality of air, 
soils, waters and environment protection (ISO standards). 
Item 122 
We note again, that while adoption of EC no rms in the area of standardization may be an 
improvement, but it is no guarantee of WTO consistency.  We will oppose adoption of 
manifestly WTO inconsistent measures. WT/ACC/UKR/110/Add.2 
Page 78  
 
 Answer:
 
Article 5 of the Law of Ukraine "On Stan dardization" identifies priorities in the 
implementation of international and regional standa rds in Ukraine as one of the principles of State 
policies in the area of standardization.  Approximately 80 per cent of the national standards adopted 
during the years 2001-2002 are identical to international standards. In the event of adoption of EC 
standards as national standards, preference shall be  granted to EC standards that are identical to 
international standards. 
Legislative requirements for the drafting and appl ication of standards are set out in Section III 
of the Law of Ukraine "On Standardization", in part icular in Articles 11 and 12, which is consistent 
with the provisions of Article 4 and Addendum З of the TBT Agreement. National standard DSTU 
1.7 - 2001 "Rules and methods for adoption and application of international and regional standards" is 
used. 
Drafting of regulatory acts (technical regulati ons) on conformity assessment is governed by 
Article 6 of the Law of Ukraine "On Conformity Asse ssment".  In the course of development of draft 
technical regulations for conformity assessment, the Ukrainian party is guided by recommendations of 
the Working Party on Standardization under the UN  EEC, which has adopted a model for drafting 
technical regulations on the basis of applicable interna tional standards. 
Item 123 We do not agree with the implication in the respons e to item No. 54 that it is justifiable to limit 
approval of certification bodies to Ukrainian residents. This should be changed to fully 
implement Article 6 of the TBT Agreement. 
Answer:
 
 Pursuant to applicable laws, authorities for assessment of conformation located in the WTO 
Members will be able to participate in the proc edures for assessment of conformity on terms and 
conditions which are not less favorable than for th e relevant Ukrainian authorities.  The said access 
shall be provided on the basis of bilateral agreem ents.  Thus, for example, the Ukrainian Center on 
Tests and Certification of Electrical Equipment (U krTEST) has entered into agreements on mutual 
recognition of the results of works on assessment of  conformity with the authorities on certification in 
the field of electrical equipment of Germany, Po land and the Czech Republic.  Within the said 
agreements, the results of tests shall be recognize d for issuance of the national certificate of 
conformity.  In such situation, authorities on assessment of conformity of other countries may not be 
residents of Ukraine. 
 Therefore, observance of Article 6.4 of the TBT Agreement shall be ensured. 
Item 124 We welcome the information provided on approval of rules for defining the cost of works on 
conformity assessment.  We seek explanation of  the meaning of "proportionality" provided for 
by the PCA and GATT.  How do Ukraine's regula tions specifically comply with provisions of 
Article VIII of GATT 1994 and Article 5 of the TBT Agreement? 
Answer:
 
 The rules for the determination of the cost of  work to assess conformity (Resolution of the 
CBU of 11 April 2002 No. 485) requires the calculat ion of such cost to be performed on the basis of  WT/ACC/UKR/110/Add.2 
 Page 79 
 
 
 the equivalence to the expenditures made via the rate  of labour input.  "Proportionality" means that 
such rules imply equal inputs is respect to similar co mmodities irrespective of the country of origin, as 
well as the correspondence of payments for the work to assess conformance with the cost of services 
rendered, in accordance with Article VI II of 1994 GATT and Article 5 of the TB Т Agreement. 
Item 125 
We seek clarification of the statement that "t he applicant is given the right to choose the 
certification scheme".  What types of cert ification schemes are available to applicants? 
Answer:  
The UkrSEPRO system of certification pr ovides for 6 certification schemes: 
- certification of a single product; 
- certification of a shipment  of products (goods); 
- certification of products that are serially ma nufactured without examination/inspection of 
the manufacturing process; 
- certification of products with examination /inspection of the manufacturing process; 
- certification of products with attesta tion of the manufacturing process; and 
- certification of products with assessment of a quality system or certification of a quality 
system. 
At the time of filing of an application for cer tification of products, an applicant has the right 
to choose a particular certification scheme (model), depending on its possibilities, and finally such 
scheme shall be determined by a certification authority. In this respect, specifics of the manufacturing 
process, testing, supply and use of particular produc ts, possible expenses of the applicant, as well as 
findings resulting from the review and analysis of ma terials provided by the applicant (subject to the 
applicant's wishes as to the certification scheme) are taken into account. 
Item 126 
We would be grateful if Ukraine could provide a more detailed explanation of the precise steps 
it proposes to take to change its system of conformity assessment, and the proposed timetable 
for these. 
Answer:  
In the near future the Cabinet of Ministers of Ukraine plans to approve a draft technical 
regulation for modules of conformity assessment procedures and principles governing marking with 
national conformity marks, which must be used in  technical regulations for conformity confirmation 
(developed on the basis of EU Council Resolution 93/465), and ten technical regulations for 
conformity assessment will be further improved on this basis and approved by the end of 2003. 
 The List of Products subject to Mandatory Cer tification in Ukraine will be further reduced to 
the extent that technical regulations are developed that provide for schemes of conformity assessment 
for particular types of products dependi ng on risks such products may present. 
Item 127 
In its response to No. 54, Ukraine restates th e provision of its Law on Conformity Assessment 
that is inconsistent with Article 6 of the TB T Agreement.  We seek information on when and 
how Ukraine will bring this provision into line with WTO rules. WT/ACC/UKR/110/Add.2 
Page 80  
 
 Answer:
 
 The sanitary and phyto-sanitary control system is being reformed as part of a package of 
measures aimed at Ukraine's WTO accession and, in particular, in pursuance of Decree No. 797 of the 
President of Ukraine of 5 September 2001 "O n Additional Measures To wards Acceleration of 
Ukraine's WTO Accession". 
The measures accomplished to date include: 
- the Law of Ukraine On Amendments to the La w of Ukraine On Ensuring Public Sanitary 
and Epidemiological Welfare has been approv ed providing for equal requirements posed 
to domestic and foreign goods with respect to  their safety for human life and health, as 
well as in regard to procedures of control and expert examinations, issue of permits, 
adoption of sanitary and epidemiological standards and regulation; 
- a list of products determined pursuant to UKT ZED subject to sanitary and phyto-sanitary 
control at the border has been prepared. The above mentioned list of goods is included as 
an attachment to Resolution No. 1569 of the Cabinet of Ministers of Ukraine On 
Procedure of Single Fee Collection at Points  of Crossing State Border of Ukraine of 
24 October 2002; 
- in compliance with requirements of the Internat ional Veterinary Code of the International 
Epizootic Bureau, amendments have been ente red into the Veterinary Requirements to 
Import into Ukraine of Cargos and Freights Subject to Control by the State Veterinary 
Service; 
- the Cabinet of Ministers of Ukraine has approved Regulation On State Sanitary and 
Epidemiological Service of Ukraine (Resolution No. 1218 of the Cabinet of Ministers of 
Ukraine of 19 August 2002), Regulation on State Sanitary and Epidemiological Oversight 
in Ukraine (Resolution No. 1218 of the Cabinet of Ministers of Ukraine of 
19 August 2002); and 
- the information center on sanitary measures applied in Ukraine has been opened at the 
official website of the Ministry of Health of Ukraine. 
 Resolution No. 1419 of the Cabinet of Minist ers of Ukraine On Certain Measures Towards 
Medical Preparations Quality Improvement identifie s the State Department for Control of Quality, 
Safety and Production of medical preparations and Medical Purpose Products as a national authority 
charged with certification of medi cal preparations production confor mity with due production practice 
requirements. In pursuance of this Resolution, the Ministry of Health of Ukraine has passed Decree 
No. 369 of 14 October 2002 approving the following: 
- activities with respect to creation of the na tional medical preparations standardization 
system harmonized with international standardization system requirements; 
- activities to the end of accession to the Pharma ceutical Inspections Cooperation System to 
ensure involvement in activities of European and international organizations related to 
pharmaceuticals quality management; 
- lists of legal and regulatory acts governing certification of pharmaceuticals production 
and standardization system. 
 Seeking to ensure further harmonization of  Ukrainian laws regu lating pharmaceuticals 
distribution with international standards and requi rements, the Draft Law of Ukraine On Amendments 
to the Law of Ukraine On Pharmaceuticals has been prepared and approved in the first reading by the 
Verkhovna Rada of Ukraine. The Draft Law provides for the introduction of globally recognized 
quality assurance system and determines require ments to due practices: manufacturing (GMP), 
laboratory (GLP), clinical (GCP), distribution (GDP).  WT/ACC/UKR/110/Add.2 
 Page 81 
 
 
  Please see the Answer to Item 123. 
Item 128 Ukraine's response provides an insufficient expl anation of how provisions of its laws ensure 
technical regulations are the least-trade restri ctive measures to achieve the various policy 
priorities mentioned under Article 13.  Can Ukraine provide clarification? 
Answer:
 
 Article 1 of the Law of Ukraine "On Conformity Assessment" No. 2406- ІІІ of 17 May 2001 
determines that technical regulations for the as sessment of conformity are legal-normative acts 
approved by the Cabinet of Ministers of Ukraine setting forth descriptions of the varieties of products subject to mandatory verification of  conformity; establishing requiremen ts in respect to safety for life 
and wellbeing of humans, animals, and plants, as well as for property and for the environment; setting 
procedures for the assessment of conformity with  such requirements; and setting rules for marking 
and for putting products into circulation. 
 Article 9 of the Law of Ukraine "On Conformity Assessment"  stipulates that  the procedure for 
the assessment of conformity in the legally regulated field for particular varieties of products that may 
be potentially dangerous for the life and wellbeing of humans, animals, and plants, as well as for 
property and for the environment, shall be establis hed by technical regulations for the assessment of 
conformity. 
 Article 13 of the Law of Ukraine "On Standardization" No. 2408- ІІІ of 17 May 2001 
determines that technical regulations and other le gal-normative acts establish mandatory requirements 
regarding: 
- Protection of life, wellbeing, and property of people, 
- Protection of animals and plants, 
- Protection of the environment, 
- Safety of products, processes, and services, 
- Prevention of deceit regarding the purpose and safety of products, 
- Removal of any threat to national security. 
 Article 5 of the Law of Ukraine "On Verify ing the Conformance" stipulates among the 
principles of state policies in the field, the following principles: 
- Fairness, transparency, and accessibility of conformance assessment procedures; 
- Application in line with current internatio nal practices, of conformance assessment 
methods depending on potential risks; 
- Uniformity of conforma nce assessment procedures as applied to products of domestic and 
foreign origin; and 
- Harmonization of national legal-normative act s regulating assessment  of conformance, 
with the international norms. 
 Thus, current Ukrainian legislation determines that technical regulations shall be applied to 
performance of tasks similar to those stipulated in Article 2.2 of the TB Т Agreement.  At that, the 
potential risks shall be assessed, with due respect for current international practice.  In accordance 
with Article 2.5 of the TB Т Agreement, this means that such technical regulations do not create 
ungrounded obstacles to international trade. WT/ACC/UKR/110/Add.2 
Page 82  
 
 Item 129 
In addition to these three horizontal laws, we understand that Ukraine is also working on 
additional horizontal legislation, for example in the metrology field.  Could Ukraine please 
confirm and provide further information?  Concerning the law on Accreditation of Conformity 
Assessment Bodies, it would be useful if Uk raine could provide more information on the 
monitoring of performance and impartiality of accreditation bodies established in the Ukraine. 
Answer:
 
In order to fulfill final provisions of the Laws of Ukraine "On Standardization," "On 
Accreditation of Authorities on Assessment of C onformity/" and "On Confir mation of Conformity," 
the draft Law of Ukraine "On Amendment of th e Law of Ukraine 'On Metrology and Metrology 
Activity'" was worked out. The said draft was subm itted to the Cabinet of Ministers of Ukraine for 
consideration. 
 The main changes provided by the said draft shall be the following; 
- provisions related to accreditation for the right to carry out metrology works shall be 
excluded; 
- provisions in relation to authorization in St ate metrology system to carry out metrology 
works shall be included (provisions which de termine authorization authorities, procedure 
for conducting of authorization and res ponsibility of authorization authorities); 
- sphere of the law's application shall be dete rmine more precisely (the Law shall apply to 
physical persons); 
- state register of methodologies of tests effect uation applied in the field of state metrology 
surveillance shall be introduced; and 
- sphere of state metrology surveillance sha ll be determined more  precisely (state 
metrology surveillance shall cover works relate d to control of quality of medicines and 
works on ensuring of technical protection of information). 
 In relation to monitoring of activities and object ivity of accreditation authorities established in 
Ukraine, please note that pursuant to Article 7 of the Law of Ukraine "On Accreditation of Authorities 
on Assessment Conformity", the Council on Accredit ation was created.  This Council is a consultative 
and supervisory body of the national authority on a ccreditation. Carrying out the said monitoring is 
among the main functions of the said Council. 
Item 130 We do not agree with the concerns expressed here.   It is perfectly legitimate to follow the 
European approach.  European standards are based, wherever possible, on international 
standards.  Also, it should be clear that the answer to the question refers to both technical 
regulations and standards. 
Answer:
 
 Ukraine takes note of this statement. 
Item 131 Could further information be provided on the measures implemented so far?  WT/ACC/UKR/110/Add.2 
 Page 83 
 
 
 Answer:  
 The development of regulatory acts, that ensure conformity with the rules and principles of 
the TBT Agreement, is governed in particular by  Decree No. 797 of the President of Ukraine "On 
Additional Measures aimed to acce lerate Ukraine's Accession to the World Trade Organization", 
dated 5 September 2001, and Decree No. 104 of the President of Ukraine "On the Program for 
Measures aimed to complete Ukraine's Accession to the World Trade", dated 5 February 2002. 
 Development of regulatory acts (technical regulat ions for conformity assessment) is governed 
by Article 6 of the Law of Ukra ine "On Conformity Assessment". 
 In the course of development of draft techni cal regulations for conformity assessment, the 
Ukrainian party is guided by recommendations of the Working Group for Standardization within the 
UN EEC, which has adopted a model for developing technical regulations on the basis of respective 
international standards. 
 The selection of technical regulations to be  developed on a priority basis is based on: 
- international standards that ar e based on principles of safety of products, processes or 
services; 
- studies of international experience of developed countries in the area of introduction of 
analogous documents; and 
- taking into consideration of national differences for purposes of implementation of 
international standards, norms and rule s in the area of technical regulation. 
 The analysis of the said factors shows a need  for development of priority regulatory acts. 
 Currently, 11 draft technical regulations have been developed on the basis of the European 
Union's "New Approach" Directives. 
 The basic draft technical regulation for modules of conformity assessment procedures and 
principles governing marking with national confor mity marks, which must be used in technical 
regulations for conformity assessment , is undergoing the final stage of  consideration at the Cabinet of 
Ministers of Ukraine, and will soon  be approved by the Government. 
 The draft technical regulations in Ukrainian (two of them have English language translations) 
are placed on the Web-page of Derzhspozhyvstandart of Ukraine ( http://www.dstu.gov.ua/ ). 
Item 132 
The answer provided is not sufficiently clear.  Is there no compulsory inspection at the moment 
of import? 
Answer:  
 Ukraine does not have a list of goods for whic h a requirement of compulsory inspection of 
import in the field of technical regulation shall apply. 
Item 133 Concerning the choice of conformity assessment procedures referred to here, could Ukraine 
please provide an update on the status of the technical regulation on modules? WT/ACC/UKR/110/Add.2 
Page 84  
 
 Answer:
 
The draft technical regulations on modules of the procedures for assessment of conformity 
and marking with the national sign of conformity which have to apply in technical regulations on 
confirmation of conformity has passed and shall be approved by the Government  in the nearest future. 
Item 134 
What are Ukraine's plans to eliminate mandatory certification to rationalise certification 
requirements?  When will draf t legislation be adopted? 
Answer:  
 The new draft Law of Ukraine "On State Regulati on of Import of Agricultural Products" was 
worked out which again provides for exclusions of products for processing from the List of Mandatory Certification. 
 At the same time, current activities in relation to  revision of the List of Products which are 
subject to Mandatory Certification in Ukraine are actively undertaken in order to exclude those 
products that have a low degree of risk.  The said  revision is planned to be carried out annually. 
Item 135 
The problem referred to in the question persists . What are Ukraine's intentions to remedy the 
situation? 
Answer:
 
 Ukraine is examining in detail the issues raised  by this question and will provide an answer in 
the immediate future. 
(c) Sanitary and phytosanitary measures 
Item 136 Ukraine makes reference to a TACIS report on sanitary measures.  Can this report be made 
available to the Working Party?  While Ukraine claims compliance with Article 7 and Appendix 
B of the SPS Agreement, it is our expectation th at Ukraine will be in full conformity with all 
provisions of the SPS Ag reement upon accession. 
Answer:
 
 Ukraine submitted the report on sanitary measures requested which has been circulated in 
document WT/ACC/UKR/110/Add.3.  Ukraine is cognizant of the obligations of WTO membership.  
It expects to deal fully with the questions of its co mmitments in the context of preparation of the draft 
Report of the Working Party. 
Item 137 
Ukraine has not provided information on reas ons for requiring veterinary or sanitary 
verification upon import or transit and the fee structure involved.  We ask that such 
information be provided.  WT/ACC/UKR/110/Add.2 
 Page 85 
 
 
 Answer:  
A customs official determines the types of c ontrol at the customs border checking point of 
Ukraine.  Officers of the relevant control services are included in the process of control. 
The veterinary control is conducted in order to prevent imports into the territory of Ukraine of 
cargoes unsafe in epizootic terms. 
When cargoes are imported or transited through th e territory of Ukraine, only the review of 
accompanying documents is made at the state border on the subject of correspondence thereof to the 
requirements of International Veterinary Code of the International Epizootic  Bureau (IEB).  This 
procedure takes 15-20 minutes. 
For more detail on payments charged at the customs border of Ukraine see also Answer to 
Item 41. 
Item 138 We welcome the information provide d in the Action Plan for Reso lution of Problem Issues of 
SPS inspection in Ukraine (Annex 8). Many of the initiatives were to have been undertaken 
throughout 2002.  We seek clarification as to which aspects of the plan have been completed, 
and those still under progress. 
Answer:
 
 The sanitary and phyto-sanitary control system is being reformed as part of a package of 
measures aimed at Ukraine's WTO accession and, in particular, in pursuance of Decree No. 797 of the 
President of Ukraine of 5 September 2001 "O n Additional Measures To wards Acceleration of 
Ukraine's WTO Accession". 
 The measures accomplished to date include: 
- the Law of Ukraine "On Amendments to the Law of Ukraine "On Ensuring Public 
Sanitary and Epidemiological Welfare"" has been approved providing for equal 
requirements posed to domestic and foreign goods with respect to their safety for human 
life and health, as well as in regard to procedures of control and expert examinations, issue of permits, adoption of sanitary and epidemiological standards and regulation; 
- a list of products determined pursuant to U CC FEA subject to sanitary and phyto-sanitary 
control at the border has been prepared. The above mentioned list of goods is included as an attachment to Resolution No. 1569 of the Cabinet of Ministers of Ukraine "On the 
Procedure for Collecting the Unified Fee at Points of Crossing the State Border of 
Ukraine" of 24 October 2002; 
- in compliance with requirements of the Internat ional Veterinary Code of the International 
Epizootic Bureau, amendments have been ente red into the Veterinary Requirements to 
Import into Ukraine of Cargos and Freights Subject to Control by the State Veterinary 
Service; 
- the Cabinet of Ministers of Ukraine has approved the Regulation "On State Sanitary and 
Epidemiological Service of Ukraine" (Resolution No. 1218 of the Cabinet of Ministers of Ukraine of 19 August 2002), Regulation "On State Sanitary and Epidemiological 
Supervision in Ukraine" (Resolution No. 1218 of the Cabinet of Ministers of Ukraine of 
19 August 2002); 
- the information center on sanitary measures applied in Ukraine has been opened at the 
official website of the Ministry of Health of Ukraine. WT/ACC/UKR/110/Add.2 
Page 86  
 
  Resolution No. 1419 of the Cabinet of Ministers of Ukraine "On Certain Measures Towards 
Medical Preparations Quality Improvement" identifies the State Department for Control of Quality, 
Safety and Production of Medical Preparations and Medical Purpose Products as a national authority 
charged with certification of medi cal preparations production confor mity with due production practice 
requirements. In pursuance of this Resolution, the Ministry of Health of Ukraine has passed Decree 
No. 369 of 14 October 2002 approving the following: 
- activities with respect to creation of the na tional medical preparations standardization 
system harmonized with international standardization system requirements; 
- activities to the end of accession to the Pharma ceutical Inspections Cooperation System to 
ensure involvement in activities of European and international organizations related to 
pharmaceuticals quality management; and 
- lists of legal and regulatory acts governing certification of pharmaceuticals production 
and standardization system. 
 Seeking to ensure further harmonization of  Ukrainian laws regu lating pharmaceuticals 
distribution with international standards and requ irements, the Draft Law of Ukraine "On Amendment 
of the Law of Ukraine "On Pharmaceuticals"" has been  prepared and approved in the first reading by 
the Supreme Rada of Ukraine. The Draft Law prov ides for the introduction of globally recognized 
quality assurance system and determines the requ irements to due practices: manufacturing (GMP), 
laboratory (GLP), clinical (GCP), distribution (GDP). 
Item 139 
Ukraine notes in its response that "in order to reduce the duplication of the functions of the 
state sanitary-hygiene offices by higher superv ising bodies…. changes to the Law "On changes 
in the Law of Ukraine On sanitary and Epidem ic Welfare of the Population" specifies that 
control and supervision over compliance with the requirements to safety of human life and 
health is a complete responsibility of the medical professionals". We seek clarification as to how 
this results in less duplication of functions. 
Answer:  
One of the main functions of the State Sanita ry Epidemiologic Service of Ukraine is the 
supervision over adherence of the sanitary legisla tion requirements.  Sanitary legislation establishes 
medical (sanitary-epidemiological) requirements to the safety of environmental factors affecting 
human life and health. Requirements of safety for health and life of the population are mandated by 
the State standards and other normative-technical documents for products, raw materials, technologies 
and other factors affecting the human environment. 
When the relevant types of control are conduc ted by different organizations and bodies, in 
particular - Derzhspozhyvstandart, ec ological inspection and veterinary service, the control is carried 
out on adherence to the requirements of stat e standards and other normative-legal documents, 
including the requirements of safety of products fo r human life and health, which lead to duplication 
of functions of the State Sanitary Epidemiological service by these bodies. 
In order to eliminate duplication of functions of  the State Sanitary Epidemiological Service by 
other controlling bodies, the Law of Ukraine "On Sa nitary and Epidemic Safety of the Population" 
was supplemented with the following: 
- Article 1 of the Law establishes that "control and supervision over adherence to medical 
requirements on safety for human health and life lie solely within the competence of the 
medical profession";  WT/ACC/UKR/110/Add.2 
 Page 87 
 
 
 - Article 14 of the Law determines that "supervi sion over adherence to sanitary norms in 
the standards and other normative-technical doc uments, conformity of products with the 
requirements of safety for health and life of  the population are undertaken by the bodies, 
institutions and establishments of the State sanitary epidemiologic service. 
Item 140 
It is not apparent from Ukraine's response that Article 16 of the Law of Ukraine "On Sanitary 
and Epidemiological Well-Being of the population"  ensures that the use of sanitary measures 
for protectionist purposes is impossible. We seek  clarification as to how this is ensured. 
Answer:  
 Article 16 of Law "On Sanitary and Epidemic  Safety of the Population" No. 4004-XII, of 
24 February 1994, says that the same life and safety requirements apply to products, procedures of inspections, assessment, issue of permissions, establishment of sanitary and epidemic norms and 
regulations both to imported and do mestic goods and raw materials. 
 Besides, Article 51 of the same law says th at if an international agreement that Ukraine 
participates in establishes rules di fferent from those envisa ged in the sanitary legislation of Ukraine, 
the rules of the internatio nal agreement shall apply. 
Item 141 
Can Ukraine confirm that it will fully comply  with the SPS Agreement upon accession?  We 
would also appreciate more information on ho w other WTO members will be made aware of 
changes in Ukrainian SPS measures. 
Answer:
 
 Ukraine will reply to this question in the immediate future. 
(e) State-trading practices  
Item 142 
The last documentation that we have seen on  state trading was presented in WT/ACC/UKR/67 
and Add.1. 
The list in item No. 62 identifies entities as state trading enterprises in the context of GATT 
Article XVII and the Understanding on Article XVII, but without information, we cannot 
accept Ukraine's assertion that they operate in conformity with WTO provisions. 
In particular, what happened to Khlib Ukrainy?   What is its current role in grain marketing 
and trade. 
Answer:  
 The State Joint Stock Company "Khlib Ukrainy" (SJSC "Khlib Ukrainy") was established in 
August 1996.  The structure of the Company includes 81 production subsidiaries established as 
wholly-owned enterprises (their charter funds are no t divided into shares/partic ipation interests).  The 
subsidiaries are located almost in all oblasts of Ukraine, have 17,000 employees, and control 
18-20 per cent of the country's grain storage and fl our, cereal and mixed fodder production capacities. WT/ACC/UKR/110/Add.2 
Page 88  
 
  Also, see hereinafter the response to Item 143. 
Item 143 Please provide copies of the legislation concerning Khlib Ukrainy referred to in 
WT/ACC/UKR/96. 
Answer:
 
 Document "UKR/96" refers to the Decree of the Ukrainian President "On Urgent Measures 
aimed to regulate Activities of State-Owned (Nat ional) Joint Stock and Holding Companies", dated 
7 November 2001, under No. 104.  Pursuant to this Decree, as regards SJSC "Khlib Ukrainy" an issue 
is considered as to this Company's reorgani zation along lines of change of the Company's 
organizational structure. Ukraine w ill provide a copy of this document. 
 In implementation of the Decree of the Ukrainian President, Resolution No. 604- р of the 
Cabinet of Ministers of Ukraine, dated 25 Octobe r 2002, was adopted, which Resolution approved 
directions of a SJSC "Khlib Ukrainy" restructuring plan.  The SJSC "Khlib Ukrainy" restructuring 
plan includes 12 stages, and contemplates that a report on implementation of this plan shall be 
submitted by 1 October 2003.  Efforts continue to be taken to realize these directions. Ukraine will 
also provide a copy of this document. 
 The State Enterprise "Agency for Restructuring of Debts of Enterprises in the Agro-Industrial 
Complex" was established in implementation of the Plan for Restructuring of the State Joint Stock 
Company "Khlib Ukrainy" (Resolution No. 690 of the Cabinet of Ministers of Ukraine, dated 
15 May 2003). 
Item 144 
Ukraine has acknowledged that the state regula tion of production and trade in alcohol and 
tobacco, which selects companies entitled to en gage in export and import transactions, may 
constitute state trading. 
Please provide an update on this regime, and indicate how Ukraine intends to address these 
issues in the context of WTO accession. 
Answer:  
 Please see Annex 6. Item 145 Ukraine should update the information provided as responses to the questionnaire on state 
trading. 
In addition to listing state tr ading enterprises, the protocol package should contain clear 
confirmation that from date of accession th at Ukraine's state-trading enterprises will be 
administered and operated in conformity with  WTO provisions, including Article XVII and the 
Understanding. 
We also seek confirmation that the laws and regulations governing the trading activities of 
State-owned enterprises as well as enterprises wi th special or exclusive privileges (including 
practices such as state orders, purchases for state needs, state-designated trading, state goods  WT/ACC/UKR/110/Add.2 
 Page 89 
 
 
 distribution, government -to-government agreements for the supply/purchase of products, and 
state mandated counter-trade and barter) will 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. 
Answer:  
 Ukraine is undertaking such an update and will provide that update to Members as soon as 
possible. 
Item 146 
Ukraine states that the activities of state tradin g enterprises are in conformity with Article XVII 
of GATT 1994.  We request detailed informatio n on the operation and purpose of each body, 
why they qualify as STEs, and a demonstration of how their actions are in conformity with the 
requirements of Article XVII of GATT 1994.  Have all enterprises which enjoy exclusive or special privileges in relation to purchases or sales involving exports or imports been listed? Do 
all such enterprises allow the enterprises of  all WTO Members adequate opportunity to 
compete for participation in their purchases and sales? 
Answer:
 
 Ukraine has taken note of this request and is preparing the necessary information, which will 
be made available to Members of the Working Party as soon as possible 
(f) Free zones (g) Free economic zones Item 147 
Please explain whether privileges under the Free Economic Zones are limited to certain 
industrial sectors and, if so, which sectors. 
Answer:
 
 Benefits granted within FEZ are not legally li mited to specific industry sectors.  Typically 
such benefits are associated with implementation of investment projects approved by FEZ 
management bodies in compliance with applicable laws. 
 For more details on the investment projects  approval procedure please see response to 
Item 148. 
Item 148 In general, what are the eligibility criteria for entry into FEZs? 
Answer:
 
 The status of being a FEZ firm is granted to business entities that ate legal persons, located 
within the FEZ territory and duly registered as F EZ subjects.  A decision on an investment project 
approval shall constitute sufficient grounds for ente ring into an agreement (contract) with respect to WT/ACC/UKR/110/Add.2 
Page 90  
 
 terms and condition of the investment project implementation and registration by an economic 
development and management body of a business entity as an FEZ subject. 
 In some FEZs, business activity is permitted without forming a legal entity through 
subsidiaries, branches or divested units (FEZ "Donetsk", "Azov", "Yavoriv"). 
 Some FEZs impose a requirement of a minimum level of an investment (see Table 14 below). 
Table 14
 
FEZ Investment Project Cost  
Reni At least US$200,000 
Porto-franco at Odes sa Commercial Sea 
Port At least US$1 million 
Slavutych At least US$200,000 
Port Crimea At least US$100,000 
Mykolayiv At least: 
 
US$500,000 – in food processing and agricultural produce 
processing industries; US$700,000 – in construction, energy and transportation; 
US$1 million – in machine building and instrument building; 
US$3 million - for shipbuilding industries.  
Yavoriv At least US$500,000 (except projects involving technological park) 
 
 In addition to that, a contract must be drawn up in line with the Model Agreement (Contract) 
for Investment Project Implementation in a Priority Development Area in a Special (Free) Economic Zone, as approved by Resolution No. 1199 of the Cabinet of Ministers of Ukraine of 5 July 1999, and 
the due registration fee paid. 
 The review and approval of investment projects to be implemented within an FEZ shall be 
governed by laws of Ukraine regulating activities of respective FEZ (see WT/ACC/UKR/110/Add.1, 
Annex 9) and by applicable regulations issued by the Cabinet of Ministers of Ukraine. As a rule, 
while reviewing the feasibility of an investment project implementation, an FEZ management body is 
guided by the assessment of such project's compatibility with goals and purposes of the foundation of 
the FEZ in question, with socio-economic development programs or priorities of economic activity 
within such FEZ (see, in particular, data on Mykolayiv  FEZ below), as well by the justification of lists 
and amounts of importation of equipment, hardware and parts into such zones (insofar as it is 
provided by the project and applicable laws).  Fu rthermore, the investment project shall undergo an 
expert examination to assess capacities for preventi on of negative effects of its implementation, in 
particular with respect to the fulfillment of stat e economic, scientific and technological and social 
development projects, amounts of budget revenues and identification of sources for potential losses 
recovery. 
 Below is the list of business activities in Mykolayiv FEZ in accord ance with Resolution 
No. 1175 of the Cabinet of Ministers of Ukraine On Certain Matters Pertaining to Investment Activity 
in Priority Development Areas and Spec ial Economic Zones of 26 July 2000: 
- Wood and timber processing an d wood products manufacturing 
- Industrial gases production 
- Plastics reprocessing 
- Production of glass and glass products  WT/ACC/UKR/110/Add.2 
 Page 91 
 
 
 - Production of mechanical equipment 
- Production of other general purpose goods 
- Production of agricultural machinery 
- Production of processing machines 
- Production of machines for mining and construction 
- Production of machines for agricultural produce processing 
- Production of other special purpose machines 
- Production of electric and electronic equipment 
- Production of equipment for automobiles 
- Ship building 
- Production of furniture 
- Waste processing and treatment 
- Production and distribution of gaseous fuels 
- Heat generation and distribution 
- Water collection, treatment and distribution 
- Construction 
- Communication 
- Activities in the field of information technologies for shipbuilding 
- Research and development in natu ral sciences and technologies 
- Vocational education and training 
- Sanitation, cleaning and waste treatment 
 The list of acts issued by the Cabinet of Ministers of Ukraine and governing the procedure of 
FEZ-related investment projects revi ew and approval is presented below: 
- Directive No. 212-r of 23 May 2001 On Approval of the Drafts Procedure of Review and 
Approval of Investment Projects Implemented in  Priority Types of Business Activity in 
Priority Development Areas and in Special Economic Zones "Port of Crimea" in the 
Autonomous Republic of Crimea and the List of Priority Types of Business Activity in Priority Development Areas of the Autonomous Republic of Crimea for Which Special 
Investment Regime has been Established 
- Resolution No. 1175 On Certain Matters Pertaining to Investment Activity in Priority 
Development Areas and Special Economic Zones of 26 July 2000 
- Resolution No. 982 On Procedure of Approval and Registration of Investment Projects 
Implemented within Special Economic  Zone "Yavoriv" of 7 June 1999 
- Resolution No. 1860 On Procedure of Approval and Registration of Investment Projects 
Implemented within Special Economic Zone "Slavutych" of 7 October 1999 
- Resolution No. 1065 On Procedure of Approval and Registration of Investment Projects 
Implemented within Special Economic Zones and Priority Development Areas of 
Donetsk Region of 18 June 1999 
- Resolution No. 1507 On Procedure of Approval and Registration of Investment Projects 
Implemented within a Tourism and Recreation Special Economic Zone "Kurortopolis 
Truskavets" of 4 October 2000 
- Resolution No. 1344 On Special Economic Zone Reni of 27 August 2000 
- Resolution No. 1199 On Approval of a Model Agreement (Contract) for Investment 
Project Implementation in Priority Developmen t Area, in a Special (Free) Economic Zone 
of 5 July 1999 
- Resolution No. 796 On Special Economic Zone "Interport Kovel" of 15 May 2000. 
Item 149 On what basis are goods manufactured in the Free  Zones deemed to have transformed imported 
inputs sufficiently to eliminate the need to pa y the duties and taxes exempted when the inputs WT/ACC/UKR/110/Add.2 
Page 92  
 
 were imported?  What other benefits, if any, in terms of tax exemptions, are available to firms 
that locate there? 
Answer:
 
 Goods are deemed finished or adequately proces sed or reprocesses in a special economic zone 
insofar as they meet criteria set forth in Article 18 of the Law of Ukraine On The Single Customs 
Tariff. More specifically, the following goods sha ll be considered finished in the given country: 
- natural resources extracted within th e special economic zone territory; 
- plantation products grown on its soil; 
- live animals bred in the zone; 
- products produced of such animals within the zone; 
- hunting, fishery and seafood products produced within the zone; 
- seafood products extracted or produced in  the World Ocean by vessels of the given 
country, as well as by vessels leased or freighted by its; 
- secondary raw materials and wastes genera ted through production and other processes 
completed within this country; and 
- goods manufactured in this country exclusively of the products referred to in paragraphs 
"a" through "g" of this Article. 
 Goods processing or reprocessing is deemed sufficient as long as: 
- The declared goods are classified in a tariff position other than materials and products 
originating in third countries and having been used for their production; 
- The value added to the cost of the declared goods is at least 50 per cent. 
 The following technological operations may not be  deemed as a sufficient goods processing: 
- Operations with respect to g oods safety at the time of th eir transportation or storage; 
- Goods preparation for sale and transporta tion (batches fragmentation, shipments 
formation and repackaging); 
- Simple assembly operations; and 
- Goods (components) mixing without attributi ng to the finished product of features 
substantially distinguishing it from its components. 
 The exhaustive list of benefits granted to FEZ subjects is presented in document 
WT/ACC/UKR/110/Add.1, Annex 9. 
Item 150 
Ukraine should revise its domestic laws and regulations to eliminate upon accession any 
measures in place in Ukraine's free zones or other special economic areas that are not in 
conformity with WTO provisions, in particular incentives tied to export requirements, other 
subsidies, and TRIMS, ensure enforcement of its WTO obligations in those zones. 
We ask Ukraine to consider the customary commitment to apply, from the date of accession, 
normal customs formalities on goods from the zones sold elsewhere in Ukraine, including the application of tariffs and taxes.  WT/ACC/UKR/110/Add.2 
 Page 93 
 
 
 Answer:  
 Ukraine is cognizant of the obligations of WTO membership. It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 151 Ukraine has not addressed the substance of the request by Members to ensure free economic 
zones are consistent with WTO rules.  We request that Ukraine review its response. 
Answer:
 
 The table below presents information concerning  the application of re gular taxation rates to 
goods import from FEZ to the territory of Ukraine: 
Table 15  
Importation of goods and other items from FEZ into the customs territory 
of Ukraine FEZ Previously imported from outside of 
the customs territory of Ukraine  Manufactured including finished or 
sufficiently processed 
"Donetsk" All taxes and duties payable as 
applied to goods being imported VAT and excise duty are collected  
"Azov" All taxes and duties payable as 
applied to goods being imported VAT and excise duty are collected  
"Zakarpattia" All taxes and duties payable as 
applied to goods being imported VAT and excise duty are collected  
"Yavoriv" (auto-port Krakovets) All taxes and duties payable as 
applied to goods being imported Taxable 
"Interport Kovel" All taxes and duties payable as 
applied to goods being imported VAT and excise duty are collected  
"Mykolayiv" All taxes and duties payable as 
applied to goods being imported Taxable 
"Porto-franco" All taxes and duties payable as 
applied to goods being imported Taxable 
"Port Crimea" All taxes and duties payable as 
applied to goods being imported Taxable 
"Reni" All taxes and duties payable as 
applied to goods being imported Taxable 
"Slavutych" Special customs zone regime non-applicable 
"Kurortopolis Truskavets" Special customs zone regime non-applicable 
 
 Customs clearance of goods and other articles, as well as their storage under customs control 
within special economic zo nes shall be subject to collection of customs fees in accordance with 
applicable laws of Ukraine. 
 Import duty shall not be collected at importati on into the customs territory of Ukraine from 
FEZ of goods and other articles produced there, including finished or sufficiently processed ones. 
 Therefore, non-collection of import duty appears to be the only problematic issue. 
 The law of Ukraine does not link the right to an FEZ establishment any condition of export 
performance or balance of trade indices. WT/ACC/UKR/110/Add.2 
Page 94  
 
  As concerns the content of raw and other materi als of national origin, in compliance with the 
Model Agreement (contract) for the Implementation of Investment Projects in Priority Development 
Area and a Special (Free) Economic Zone as approved by Resolution No. 1199 of the Cabinet of 
Ministers of Ukraine of 5 July 1999 (Paragraph 2.4), an investor may, in the course of an investment 
project implementation, attribute preference to pr oducts (works, services) of Ukrainian origin on 
equal conditions applying to price, terms of co mpletion, quality, compliance with international 
standards. 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 152 
Can Ukraine please confirm whether any exis ting or planned payments, tax breaks and 
incentives to entities in free zones outlin ed in Annex 9 of WT/ACC/UKR/110/Add.1 are 
contingent on local content or export performance? 
Answer:
 
 See response to Item 151. 
Item 153 
Can Ukraine confirm that all its free economi c zones will fully comply with WTO rules upon 
accession? 
Answer:  
 Ukraine will reply to this question in the immediate future. 
(l) Government procurement practices  
Item 154 
We believe that Ukraine's membership in the Government Procurement Agreement would 
benefit its trade.  We urge Ukraine to initiate negotiations to join the Agreement after accession. 
Answer:  
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
(m) Regulation of trade in transit Item 155 There should be sufficient description of Ukra inian provisions on transit in the factual 
summary to confirm whether Ukraine's policies for trade in transit are in conformity with the 
provisions of the WTO Agreement, in pa rticular Article V of the GATT 1994.  WT/ACC/UKR/110/Add.2 
 Page 95 
 
 
 Answer:  
 Policies of the Ukrainian Government concerned with trade in transit are in conformity with 
the WTO Agreements, in particular with the provisi ons of Article V of GATT 1994. To confirm this, 
we provide a description of applicable Ukrainian law. 
 Law of Ukraine No. 1172-XIV dated 20 October 1999, "On Cargoes in Transit" provides that 
cargoes in transit  mean shipments by transport vehicles of cargoes in transit subject to customs control 
through Ukrainian territory between two points of entry or within one point of entry through a State 
border of Ukraine. 
 It is in conformity with the prov isions of Article V:1 of GATT 1994. 
 Ukrainian law does not provide for any restrictions on freedom of transit that would be based 
on flags of ships, places of origin, shipping, entry,  departure or destination or any circumstances that 
relate to ownership of goods, a ship or other transport vehicles. 
 It is in conformity with the prov isions of Article V:2 of GATT 1994. 
 Article 157 of the new Customs Code provides th at trade in transit through Ukrainian territory 
shall be carried out along routes that are determined by carriers at their discretion, proceeding from 
considerations of economic expediency. 
 It is in conformity with the provis ions of Article V:3 and 4 of GATT 1994. 
 At the same time, the Cabinet of Ministers of Ukraine may set restrictions on excisable goods 
in transit: 
- excisable goods (alcoholic be verages and tobacco products) shall be carried along routes 
and areas of transit through Ukrainian territory and through designated points of entry at a 
customs border as are specified by Resolution No. 484 of the Cabinet of Ministers of 
Ukraine, dated 6 May 1996, and Resolution No. 938 of the Cabinet of Ministers of 
Ukraine, dated 12 August 1996; and 
- deadlines for transit of excisable goods as are carried by motor and railway transport 
through Ukrainian territory are prescribed by Resolution No. 484 of the Cabinet of Ministers of Ukraine, dated 6 May 1996. 
Transit carriage is not subject to duties, taxe s and fees, except for the unified fee (see the 
response to Item 39), which corres ponds to the cost of transit. 
 Goods from any country are carried through Ukrainian territory on equal terms. No 
restrictions regarding MFN treatment in trans it shipments are provided for by Ukrainian law. 
 It is in conformity with the provis ions of Article V:5 and 6 of GATT 1994. 
 Ukrainian law does not provide for any special re quirements for aircraft in transit.  Goods and 
cargo are subject to control and clearance under regular procedures (see Chapter 33 of the new 
Customs Code). 
 It is in conformity with the prov isions of Article V:7 of GATT 1994. WT/ACC/UKR/110/Add.2 
Page 96  
 
 4. Policies affecting foreign trade in agricultural products  
(a) Imports 
Item 156 What is the status of the draft law "On Changes to the Law of Ukraine on State Regulation of 
Agricultural Product Import"? 
Answer:
 
 The draft law "On Changes to the Law of Ukraine on State Regulation of Agricultural 
Product Import" was intended to repeal Article 3 entitled "Non-tariff Regulation of Import of 
Livestock Products" of the Law of Ukraine "On St ate Regulation of Agricultural Product Import".  
However, since Article 3 became ineffective as of 1 January 2003 pursuant to Article 7 "Final Provisions" of the said Law, the above referenced draft law lost its actuality and necessity for enactment. 
Item 157 
Has Ukraine provided a copy of the draft law to the Working Party for review?  If not, please 
do so. 
Answer:
 
 Currently, the said draft law has lost its actu ality, as Article 3 became ineffective as of 
1 January 2003 pursuant to Article 7 "Final Provis ions" of the Law of Ukraine "On State Regulation 
of Agricultural Product Import". 
 Presently, no quota on the importation of livestock products exists in Ukraine. 
Item 158 
We seek an update on the Ukraine's efforts to abolish quotas on the importation of livestock 
products.  It is our expectation that Ukraine w ill commit that it will not maintain, introduce or 
revert to any such quotas or any other quanti tative restrictions that have no valid WTO 
justification after accession and th at it will conform with the provisions of Article XI:1 of GATT 
1994 and Article 4 of the Agriculture Agreement. 
Answer:  
 Article 3 of the Law of Ukraine "On Stat e Regulation of Agricu ltural Product Import", 
whereby quotas on the importation of livestock products were introduced till 1 January 2003, has lost 
its effect. 
 Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
Item 159 This Member is not prepared to accept Ukraine' s proposals on tariff rate quotas for sugar.  
Ukraine is well aware of our concerns, which have been discussed bilaterally for some time 
without resolution, and we request revised prop osals that take these concerns into account.  WT/ACC/UKR/110/Add.2 
 Page 97 
 
 
 In addition, we have four further questions on other aspects of Ukraine's sugar policies:  
The concerns outlined in relation to the mini mum internal prices for sugar and the measures 
used to maintain them stated in our comments  under Question 7.  We would add that this 
appears to be a very significant problem, whic h has been exacerbated by the introduction of 
new trade-distorting measures in violation of th e standstill expectation.  Our understanding is 
that not only the impact, but also the stated purpo se of such a policy, is to discriminate against 
imports of raw cane sugar.  We have seen recent media reports that Ukraine has set minimum 
prices for refined sugar of 44 c (US) per kg for 2003-04 (almost double the average world price 
of sugar of 22.8c per kg in the 2002 calendar year ) which, in conjunction with restrictions on the 
importation of raw cane sugar, are designed to provide protection for domestic producers. We ask Ukraine to address these concerns.  We h ave also seen reports that there are minimum 
prices in the sugar sector other than for refin ed sugar, and we seek full details of these; 
Pursuant to the Law of Ukraine "On State Regu lation of Sugar Production and Sale", dated 
17 June 1999, under No. 758-XIV, the minimum price for sugar is the lower level of the price at 
the time of conclusion of sale-purchase agreements on Ukraine's domestic market within the limit of the A Quota, whereas the quota of su gar supply onto the domestic market (the "A 
Quota") means a maximum quantity of sugar to be supplied onto the domestic market as from 
the 1
st of September of the current year till the 1 September of next year, in order to satisfy 
domestic needs. Resolution No. 1977 of the Cabinet of Ministers of Ukraine "On State 
Regulation of Sugar Production and Sale",  dated 25 December 2002, was adopted in 
implementation of this Law. 
The Resolution sets a quota for supplies of sugar from sugar beet onto the domestic market for 
a period from 1 September 2003 till 1 September 2004 in the amount of 1,800 thousand tons (the 
volume of sugar production from sugar beets within the limit of the said quota is allocated 
among sugar refineries), and approves a price for sugar beets that will be supplied beginning as 
from 1 September 2003 for sugar production with in the limit of the quotas for sugar supplies 
onto the domestic market, and a minimum pric e sugar within limit of the quotas for sugar 
supplies onto the domestic market.  The minimum price for sugar is set for the year 2003 
(wholesale) in the amount of UAH 2,370 for a ton or US$445 per ton (pursuant to the official 
exchange rate of the National Bank of Ukraine as at 9 May 2003 (US$100-UAH 532.7). 
Minimum prices for sugar and sugar beets are se t at a level that ensures the profitability of 
production of the given types of products. Ukrain e's setting of minimum prices for sugar is in 
compliance with Article 6 and Annex 3:8 of the WTO Agreement on Agriculture.  The 
minimum prices for sugar are set in order to support market prices both for sugar and sugar 
beets.  The minimum prices for sugar have a posi tive impact on an inc rease of profitability of 
sugar beet production in Ukraine.  Ukraine does not see in this measure any discriminatory 
conditions as to cane sugar; sugar cane for su gar production is not grown in Ukraine.  
Minimum prices, which are set to support the producers of refined sugar, exist in other WTO Members, for example in the EU, through a mech anism of intervention prices, and in the US$– 
for cane sugar through a mechanism of loan rates. 
The concerns outlined in relation to non-discrimina tion in VAT and excise taxation, as stated in 
our comments under Items 30-32. These concerns  cover the discriminatory implications of 
sectoral exemptions that do not extend to im ported products, including imported competing 
products, and of barter. We request Ukraine to remove this restriction; 
We have seen media reports that Ukraine ha s maintained a requirement that sugar refined 
from imported raw cane sugar is required to be  exported and cannot be sold in the domestic 
market. Is this true? We seek a full clarification of all measures, that are used to maintain such WT/ACC/UKR/110/Add.2 
Page 98  
 
 a requirement, and details of their basis in  Ukrainian law. Such a requirement and the 
measures to maintain it would appear to be inco nsistent with the provisions of Article 4 of the 
Agriculture Agreement and Article XI:1 of GATT 1994 
Answer:
 
 Indeed, pursuant to Article 3.11 of the Law of Ukraine "On State Regulation of Sugar 
Production and Sale", dated 17 June 1999, under No. 758-XIV, production of sugar in Ukraine from imported raw materials is permitted exclusively on condition that finished products will be exported 
in full out of Ukraine within time periods specified by Ukrainian law. Article XI:1 of GATT 1994 
"General Elimination of Quantitative Restrictions " and Article 4 of the Agreement on Agriculture 
"Market access" point out that: "No prohibitions or restrictions other than duties, taxes or other 
charges, whether made effective through quotas, import or export licenses or other measures, shall be 
instituted or maintained by any contracting party on the importation of any product of the territory of 
any other contracting party or on the exportation or sale for export of any product destined for the 
territory of any other contracting party". Ukra ine sees no direct inconsistency between the 
requirement of Ukrainian la w and the WTO requirements. 
Furthermore, media reports indicate that refinin g plants engaged in production of refined sugar 
are obliged to satisfy:  (i) attestation requirement s; and (ii) registration requirements; and (iii) 
undergo inspection every five years.  We ask that Ukraine reflect details of these restrictions in 
its responses to the checklist and explain their full WTO justification. We ask Ukraine to 
explain why these measures should not be consid ered unjustifiable restrictions on importation 
of raw sugar (used to produce some refined sugar ) and on the exportation of refined sugar. 
Answer:
 
 Pursuant to Resolution No.494- р of the Cabinet of Ministers of Ukraine, dated 29 August 
2002, "On Measures aimed to ensure that the Dome stic Market is supplied with Domestic Sugar and 
is protected against Unauthorized Imports", there are specified, among other measures, measures "to 
ensure that producers and allocat ed sugar quantities are registered, and to ensure permanent control 
over wholesale prices for sugar".  Pursuant to Orde r No. 335 of the Ukrainian Ministry of Agrarian 
Policy, dated 17 October 2002, "On Amendments to Order No. 186 of the Ukrainian Ministry of 
Agrarian Policy of Ukraine" of 20 September 2000 ("On Measures aimed to ensure that the Domestic 
Market is supplied with Domestic Sugar and is protected against Unauthorized Imports"), State 
registration of sugar producers was in troduced.  Pursuant to this act, sugar refining plants, which have 
undergone State registration and obtained State Regist ration Certificates for Sugar Refining Plants 
within the A and B Quotas on the basis of comprehensive inspection findings and attestation, are 
eligible to participate in a tender involving allocati ons of sugar production within the A and B Quotas. 
 Contenders shall be subject to comprehensive inspections once every five years. Materials of 
a comprehensive inspection must contain: 
- an analysis of the production process (growing, gathering, acceptance and storage of 
sugar beets, improvement of technological processes, an energy balance and thermal 
indicators of the processes, a water balance and use of water, a degree of production 
automation, organization of labour, environmental purity of production); and 
- proposals of inspectors as to improvements and development of production (a system for 
growing of sugar beets, a sugar beet acceptance and storage scheme, a technological 
schema of production, a heat and water usage scheme, a comprehensive automation 
scheme, a labour organization system, technical solutions that ensure environmental 
purity of production).  WT/ACC/UKR/110/Add.2 
 Page 99 
 
 
  Contenders are attested on an annual basis by the Commission for Attestation and State 
Registration of Sugar Refining Plants – Producers with in the A and B Quotas (hereinafter referred to 
as, the "Attestation Commission").  Representati ves from Chief Departments for Agriculture and 
Food, State Technical Supervision Inspectorates of Oblast State Administrations, oblast Sugar 
Industry Associations, the State Sanitary and Ep idemiological Service and, if necessary, other 
specialists, advisors and experts (per their consent) , depending on the territorial location of sugar 
refining plants, may sit on the Attestation Commission. 
 Ukraine believes that these measures are aimed, in first place, to improve sugar production 
technologies and sugar beet processi ng in Ukraine, and they cannot be regarded as restrictions on the 
importation of raw cane sugar (for production of speci fic quantities of refined sugar) and export of 
refined sugar. 
Item 160 
In its response Ukraine claims that 1997-99 cann ot be considered a representative period upon 
which to base AMS commitments given macroeco nomic conditions prevailing at the time. We 
are very concerned and very disappointed by Ukraine's attempt to revert to a distant and 
unrepresentative base period. We offer the followi ng information to illustrate why this is an 
inappropriate step:  In a recent presentation , the IMF's representative office in Ukraine 
categorised Ukraine's transition in the following manner: 
- 1991-1994: the period of "hyperstagflation" (a period of economic decline in the 
aftermath of the inception of transition); 
- 1995-1999: the period of "Stagnation and Stabilisation" - a period of serious 
stabilisation and lacklustre structural refo rm, during which out put stagnated (1995-
1999); and 
- 2000-current: the recovery (a period of market-based economic growth). 
Answer:  
 Indeed, in its response to Item 67 of WT/ACC/UKR/110 Ukraine stated that the period of 
1997-1999 may not be regarded as a representative period upon which to base AMS commitments, given macroeconomic conditions prevailing at the time .  The main arguments cited by Ukraine both in 
its response to Item 67 and in the document en titled "Position Material regarding Volumes of State 
Support necessary to implement the Strategy for Agricultural Development in Ukraine" (Addendum 
11 to WT/ACC/UKR/110/Add.1), were as follows: 
- An essential change in the level of AMS for 1997-1999 in comparison with 1994-1996 is 
explained by the fact that the years of 1 997-1999 were characterized by a decrease in 
funding for this sector due to a number of reasons of the macroeconomic nature:  a deficit 
of the State Budget, existence of non-transparent schemes of funding, suspension of state procurements of grain, reduction of suppor t aimed at specific types of agricultural 
products, etc. 
- Appropriate state support is needed for purposes of stabilization and further development 
of Ukraine's agrarian sector.  This need results from objective particularities in the 
functioning of Ukrainian agriculture, laggi ng of domestic agriculture in terms of 
technological levels of production, from a need to resolve problems specific for the 
Ukrainian agrarian sector that have amassed over the years of crisis-ridden development. 
Last years' experience shows that the agrarian sector is not able to resolve these problems 
without an increase of state support in the near future. WT/ACC/UKR/110/Add.2 
Page 100  
 
 - It is important for Ukraine to obtain a righ t to provide "yellow box" support above the 
de minimis level, especially for certain products , which, in its turn, will ensure the 
achievement of strategic internal goals in the agrarian sector and the economy in general. 
Thus, the State's funding of loan-rate procurements of grain (pursuant to the Law of 
Ukraine "On Stimulation of Agricultural Development for the Years 2001-2004", dated 
18 January 2001, under No. 2238-III, whereby support for and of producers' revenues 
through the introduction of loan rates for ag ricultural products was entrenched), will 
exceed 5 per cent of value of grain production (i.e., the de minimіs level of support), and 
will be equal approximately to 10-12 per cent of the value of grain production for certain 
grain crops. By quantitative measurements of AMS for the sector, the period of 1997-1999 places Ukraine in the " de minimis " situation, whereas the base period of 1994-1996 
grants more financial possibilities for resolvi ng agricultural problems listed in detail in 
the document entitled "Position Material regard ing Volumes of State Support necessary to 
implement the Strategy for Agricultural Development in Ukraine" (Annex 11 to 
WT/ACC/UKR/110/Add.1). 
 As regards "hyper-inflation", which took place in 1993 and 1994, Ukraine used an annual 
average exchange rate of Ukrainian currency against the US dollar in order to calculate the AMS level 
for the base period of 1994 -1996.  This annual  average exchange rate was correlative with the 
average exchange rate that existed during the period when payments for products procured by the 
State were due, and State payments under other support measures were equal during the year.  
Therefore, applying the annual average exchange rate of Ukrainian currency against the US dollar for measuring the AMS level during the base years is acceptable.  The annual average exchange rate of the Ukrainian Karbovanets (1994-1995) and the Ukrainian hryvnia (1996) against the US dollar set by 
the National Bank of Ukraine (annual average) was used for the calculations. This methodical 
approach is compatible with procedures speci fied in the Agreement on Agriculture and WTO 
practices. 
Item 161 
From 2000-2002, Ukraine has experienced signif icant economic growth (around six per cent on 
average, and as much as nine per cent), and a mo deration in inflation (to around ten per cent). 
In agriculture itself, growth of 6-10 per cent wa s recorded.  This compares with falls in GDP of 
around – eight per cent on average in 1995-97, hyperinflation (i.e., over 100 per cent), and 
financial instability requiring annual IMF Stand-By programs. 
The IMF's characterisation of the recent recovery  period was substantially the same as that 
provided by Ukraine's Minister for the Economy and European Integration in his Statement to 
the Formal Meeting of the Working Party on the Accession of Ukraine held on 
25 February 2003. 
In view of the improvement in macroeconomic stability, and the legislative and policy 
environment supporting agriculture (e.g., includi ng passage of land re form legislation), does 
Ukraine still consider that the period of "stagnation and stabilisation" best represents the 
future conditions for the functioning of agriculture in Ukraine? 
Answer:
 
 Growth in gross production of agricultural prod ucts in all categories of farms in 2001 and 
2002 is, in first place, a result of  favorable weather conditions, due to which the gross yield of grain 
essentially increased in 2001-2002.  On the contrary, a significant decrease in the yield of grain crops 
is expected in 2003. Secondly, the privileged taxati on regime for agricultural enterprises (introduction 
of the fixed agricultural tax) and write-off of tax de bts for reformed enterprises in the sector in 2000- WT/ACC/UKR/110/Add.2 
 Page 101 
 
 
 2002 encouraged, to a certain extent, a flow of investments into agricultural production, which also 
promoted an increase of gross production of agricu ltural products.  However, positive achievements in 
the increasing of production, in particular of grain and products of animal origin, did not, 
unfortunately, bring about expected financial results.  Thus, production of grain, bovine meat, milk 
and eggs suffered a material fall in the level of pr ofitability as a result of a drop of sale prices for 
agricultural products sold by agricultural enterprises.  In 2002, 54.0 per cent of enterprises posted 
losses in their activities (in 2001 – 43.9 per cent).  Ne t results of all agricultural enterprises' activities 
totaled UAH 294.6 million in losses for 2002 (in 2001 – UAH 834.1 million in profits), and the level 
of profitability in general totaled minus 1.9 per cent as compared with 5.0 per cent in 2001. 
 As regards land reform, a large number of efforts to reform land relations were accomplished 
in 2001, as a result whereof changes in these relati ons became of the irreversible nature.  However, 
the final goal – economically efficient and environmen tally safe use of lands in Ukraine, has not been 
achieved.  Positive achievements in  the accomplishment of land reform  have not yet led to the radical 
and efficient renewal of agricultural production, reinvigoration of investment processes in other 
production industries as well as raising of public welfare.  It results in a need for a comprehensive 
approach towards resolving a problem of land re form on a market basis, in close junction with 
economic reforms implemented in the country in general and changes in policies of agriculture 
support. 
 As regards the conduct of annual IMF Stand-By programs during the period of 1995-1997, 
which is linked in the question by the Working Part y Members with the financial instability of this 
period, during the period of 2000-2002 Ukraine resolved a matter of foreign debt repayment with the use of other instruments, including through restructuring of foreign debt.  A new stage in the 
negotiation process between the Ukrainian Govern ment and the IMF regarding a matter relating to 
renewal of Stand-By programs commenced in 2003. 
Item 162 
We request that Ukraine provide agricultural domestic support data and details of programs 
from the more representative and recent period of 2000-2002.  Use of such a period would be consistent with WTO requirements and WTO accession guidelines. 
It is our expectation that Ukraine will commit to  bind agricultural export subsidies at zero. 
Answer:
 
 Per an inquiry from Members of the Working Party, Ukraine has prepared agricultural 
domestic support data for the period of 2000-2002 (see the Annex 10), for information of the Working Party, but Ukraine continues to negotiate for dete rmining Ukraine's commitments regarding the level 
of agricultural support based on the period of 1994-1996 as a base period during the following 
multilateral meeting of the Working Party on Agriculture.  
 The WTO Agreement on Agriculture does not contain express guidelines as to which period 
of time should be accepted as "base".  Howe ver, the technical note of the WTO Secretariat 
(WTO/ACC/4 of 12 March 1996) indicates that inform ation on domestic support must be provided, as 
a rule, using an average figure for the past three years preceding the commencement of negotiations. 
Negotiations on agriculture within the Working Pa rty dealing with Ukraine's Accession to the WTO 
commenced in 1997.  Thus, in selecting the base period (1994-199) Ukraine was guided by WTO 
practices and recommendations of the WTO Secretariat. 
 See also responses to Items 160 and 161 and to Item 93. WT/ACC/UKR/110/Add.2 
Page 102  
 
 (e) Internal policies 
Item 163 
We appreciate the information that Ukraine has provided to us concerning its domestic support 
programs for agriculture, and we again note the very positive commitment Ukraine has made to 
bind export subsidies at zero and to not seek recourse to the special agriculture safeguard. 
With respect to domestic support programs, we note that Ukraine references legislation that 
sets out the types of agricultural policies Ukrain e intends to use through 2004. Specifically, these 
include: 
- Law of Ukraine "On Stimulation of the Development of Agriculture for the Period 
2001-2004," No. 2238-III, dated 18 January 2001; 
- Presidential Decree of 17 February 2001 No. 100 "On the measures of stabilization 
of the situation at the consumers' market and the development of livestock 
husbandry in 2001-02"; and 
- Resolution of Cabinet of Ministers of Ukraine of 11 July 2001 No. 799 (untitled). 
Has Ukraine submitted this legislation to the Wo rking Party for review? If not, please do so. 
Answer:  
 Ukraine will submit copies of this legislation to the Working Party. 
Item 164 Are there other laws, decrees, or resolutions that  have been introduced (or will be introduced) 
that are relevant to Ukraine's domestic agricultural policies? 
Answer:
 
 Effective laws in the area of agri cultural support policies in Ukraine: 
- "On the State Budget of Ukraine for the year 2003", dated 26 December 2002, 
No. 380-IV; 
- "On the Value Added Tax", dated 3 April 1997, No. 168/97-VR; 
- "On Stimulation of Agricultural Developm ent for 2001-2004", No. 2238-III, dated 
18 January 2001; 
- "On Grain and the Grain Market in Ukraine ", dated 4 July 2002, No. 37-IV; 
- "On State Regulation of Sugar Production and Sale", dated 17 June 1999, No. 758-XIV; 
- "On Breeding in Livestock Husbandry" , dated 15 December 1993, No. 3691-XII; 
- "On Seeds and Planting Materials", dated 26 December 2002, No. 411-IV; 
- "On the Fixed Agricultural Tax", dated 17 December 1998, No. 320; 
- "On (Peasant) Farms", dated 20 December 1991, No. 2009; and 
- "On Settlement of Debts outstanding on Budget Loans extended to State-Owned and 
other Agricultural Enterprises of all Owne rship Forms and Forms of Business through 
Service, Procurement and Processing Enterprises, and Restructuring of Tax and 
Mandatory Payment Debts of Processing Enterprises in the Agro-industrial Sector", dated 
18 January 2001, No. 2237.  WT/ACC/UKR/110/Add.2 
 Page 103 
 
 
  Effective Resolutions of the Cabinet of Minist ers of Ukraine in the area of agricultural 
support: 
- "On the Main Areas of Technical Support for the Agro-Industrial Complex", dated 
18 September 1997, No. 1030; 
- "On Use of Funds of State Support for (Peasant) Farms", dated 13 April 2001, No. 357: 
- "On Procedures for Calculation, Payment and Use of Funds designated for Payment of 
Subsidies to Agricultural Producers for Milk and Meat in Live Weight sold by them to 
Processing Enterprises", dated 12 May 1999, No. 805; 
- "On Procedures for Accumulation and Use of Funds payable by Agricultural Producers – 
VAT Payers with Respect to Tr ansactions involving Sales of  Goods (Works, Services) of 
their own Production, including Products (except for Excisable Goods) manufactured 
under Tolling Arrangements with their own Agricultural Raw Materials", dated 
26 February 1999, No. 271; 
- "On State Regulation of Sugar Production and Sale", dated 25 December 2002, No. 1977; 
- "On Provision of Assistance to Agricultural Producers that have suffered from 
Unfavourable Weather Conditions during the Wi ntering of Winter Grain Crops in 2003", 
dated 31 March 2003, No. 410; 
- "On Measures for Development and State Support of Sheep Breeding in 2003-2010", 
dated 16 November 2002, No. 1760; 
- "On the Conduct of Grain Pledge Transactio ns", dated 7 February 2003, No. 164; and 
- "On Approval of the Comprehensive Program for Development of the Agrarian Market 
for 2003-2004", dated 1 March 2003, No. 271. 
 Orders of the Ministry of Agrarian Policy of Ukraine: 
- "On Funding of the Hop-Growing Sector", dated 18 February 2003, No. 36; 
- "On Implementation in 2003 of the Budget Program "Financial Support for Production of 
Animal Husbandry and Plant Cultivation Products", dated 31 January 2003, No. 26; 
- "On Assurance of Implementation of the Program for Development of, and State Support 
for, Sheep Breeding for the years 2003 – 2010", dated 11 December 2002, No. 387; 
- "On Amendments to Order No. 26/67 of the Mi nistry of Agrarian Policy and the Ministry 
of Finances of Ukraine, dated 31 Janu ary 2002 (On Approval of Procedures for 
Calculation and Payment of State Budgetary Funds appropriated for making Additional 
Payments to Agricultural Producers of all Organizational-Legal Forms of Business and 
Natural Persons for Young Cattle with Incr eased Weight Conditions sold by them for 
Slaughter to Processing Enterprises and Proc urement (Purchase) Organizations)", dated 
20 November 2002, No. 359/980; and 
- "On Approval of Procedures for Use of Budge t Funds for paying out State Subsidies to 
Agricultural Producers of all Ownership Forms for Ecologically Pure Milk sold by them 
to Milk Processing Enterprises for Purposes of Production of Special Baby Food Products 
in 2002", dated 11 March 2002, No. 78/168. 
 As regards a list of laws on agri cultural support that must be enacted: 
- "On Support of Production and Development of  the Market for Agricultural Products"; 
- "On State Support of Gardening and Viticulture"; 
- "On Prices and Price Setting for Agricultural Products"; 
- "On Milk and Milk Products"; 
- "On Meat and Meat Products"; 
- "On Amendments to Article 9 of the Law of  Ukraine "On the Fixed Agricultural Tax" 
(with respect to extending the term of e ffect of the fixed agricultural tax up to 
1 January 2010"; WT/ACC/UKR/110/Add.2 
Page 104  
 
 - "On Amendments to Certain Legislative Acts  of Ukraine dealing with Regulation of 
Activities in the Agrarian Sector of the Economy"; and 
- "On Amendments to the Law of Ukraine "O n the Value Added Tax" (with respect to 
extending the payment of subsidies for milk and meat through the use and accumulation 
of VAT amounts in order to acquire materi al-technical resources for production of 
agricultural products up to the end of 2009). 
Item 165 
The data presented in table attached to Annex 11 of WT/ACC/UKR/110/Add.1 is not clear to us. 
We need to better understand the types of measures that Ukraine is presenting in this table and 
would offer the following  questions/comments: 
- Please provide all data in UAH; 
- How were the annual average costs of program utilization calculated?; and 
- Ukraine should also provide data on the value of production, for each commodity 
and total value of agricultural production. 
Answer:  
 In the Table attached to Annex 11 of WT /ACC/UKR/110/Add.1, annual average costs of 
program utilization are expressed in  UAH (column 2 in Table 1 of Annex 11) and, thereafter, re-
calculated in US dollars (column 3), which was done to compare the costs of domestic support 
programs planned for implementation in Ukraine to resolve current problems existing in the sector, 
with the de minimis  level of support on the basis of the worst period by the level of production and the 
level of support for the sector – the period of 1997-1999.  Information on the cost of each of the types of goods and the total cost of agricultural products for each of 1994-2002 is provided by Ukraine in the Working Tables under No. 1 in the documents: /ACC/SPEC/UKR/Rev.7 (1994-1996),  
WT/ACC/SPEC/UKR/Rev.6 (1997-1999), and a docum ent containing domestic support calculations 
for the period of 2000-2002. 
 The annual average costs of program utilizati on were calculated proceeding from the actual 
cost of funding for support measures that are alre ady implemented pursuant to applicable law and a 
cost estimate for those that need to be implemented in order to resolve problems of Ukrainian 
agriculture. 
Item 166 In terms of next steps, we would propose the following approach: 
- If Ukraine has not already submitted th e legislation cited above, and any other 
legislation relevant to Ukraine's domesti c agricultural policies, to the WTO 
Secretariat, it should do so well in adva nce of the next Working Party meeting; 
- If Ukraine has prepared responses to Members' questions/comments on 
WT/ACC/SPEC/UKR/Rev.6 and Rev.7, these responses should be circulated well in 
advance of the next meeting; 
- Ukraine should also endeavour to prepare responses to Members' 
questions/comments on Annex 11 of WT/ACC/UKR/110/Add.1, including questions 
concerning the table attached to the Annex;  WT/ACC/UKR/110/Add.2 
 Page 105 
 
 
 - Once Members have had a chance to review and reflect on these materials, an 
agriculture plurilateral meeting should be scheduled, ideally on the margins of the 
next Working Party, to discuss these materi als, with a view towards identifying an 
appropriate base period for Ukraine's supporting tables; 
- We continue to believe that 1997-99 or  some other recent base period is more 
appropriate than 1994-96, but we are willing to reflect further on this issue once we 
have a better understanding of Ukraine's current policy environment; and 
- However, Ukraine must recognize that whatever base period is decided, the 
supporting tables must be technically correct and reflect actual policies and 
expenditures during that period.  
Answer:  
 Ukraine has prepared agricultural domestic support data for the period of 2000-2002 (see 
Annex 10), but Ukraine would wish to procee d with negotiations for determining Ukraine's 
commitments regarding the level of agricultural support based on the period of 1994-1996 as a base 
period during the following multilateral meeting of the Working Party on Agriculture.  
 Partially, Ukraine's responses to questions and comments from the Working Party Members 
are contained in WT/ACC/SPEC/UKR/Rev.7 as comments to the AMS Tables.  In addition, with 
respect to the main questions about the calcula tion methodology raised by the Working Party 
Members at 9 and 10 meetings of the Working Pa rty considering Ukraine's application Ukraine 
provided written responses in Annex 2 to WT /ACC/SPEC/UKR/Rev.6 (Annex 2.  Agricultural 
Support/AMS Tables.  Ukraine's answers to the questions from "Ukraine's consolidated list of 
questions" document ACC/SPEC/UKR/Rev.4), and in Annex 11 to WT/ACC/UKR/110/Add.1. 
 Additionally, Ukraine will provide answers to  other questions and comments from Working 
Party Members as an annex to the amended WT/ACC/SPEC/UKR/Rev.7. 
 On the eve of a multilateral meeting on agricu lture during the eighth session (June 2001), 
Ukraine held consultations with the Agricultural Di vision of the WTO Secretariat as to whether the 
АСС /4 Tables had been drawn up technically correctly. In the course of the above referenced 
consultations it was determined that the Tables had been drawn up technically correctly.  Ukraine took into account only legislatively prescribed s upport measures in the course of drawing up the 
Tables. 
5. Policies affecting foreign trade in other sectors 
(b) Policies affecting foreign trade in other major sectors 
- Trade in Civil Aircraft
 
Item 167 
Ukraine has indicated in bilateral exchanges a willingness to join the Agreement on Trade in 
Civil Aircraft Agreement.  We would like a commit ment in the protocol package that this will 
occur upon WTO membership. 
Answer:  
 Ukraine takes note. WT/ACC/UKR/110/Add.2 
Page 106  
 
 - Automobiles
 
Item 168 We welcome the progress made to address the important problems in this area and hope that 
the draft legislation will be adopted and enacted as soon as possible. 
Answer:
 
 Ukraine takes note. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
1. General 
Item 169 This is a very important aspect of Ukraine's WTO accession process. 
The Ukrainian government has enacted legisl ation amending its IPR laws, and we are 
encouraged that Ukraine has realized the importance of bringing its regime into conformity 
with the Agreement on TRIPS. Additional legisl ation addressing remaining issues and improved 
enforcement, as well as correcting the deficiencies  in the optical disc media licensing regime, 
would considerably help the Working Party proceedings in this regard. 
Ukrainian authorities are invited to continue their efforts to fully implement the TRIPS 
Agreement, with respect to both substance and enforcement in the area of copyright and apply 
it upon accession. 
The Working Party should be kept informed of in itiatives taken to reduce current high levels of 
piracy, due to, in part, lack of proper Custom s procedures and enforcement of IPR at the 
border which results in making Ukraine a majo r transshipment point for pirated material in 
the region. 
We would appreciate information on the specif ic steps Ukraine is taking to improve its 
enforcement of intellectual property rights prot ection, e.g., new laws, new methods to enforce, 
and any recent specific actions taken. 
Answer:
 
 On 22 May, the Supreme Rada adopted at its  second and final reading the Draft Law "On 
Introducing Amendments to Certain Legislative Ac ts of Ukraine on Intellectual Property (No.1238, 
18 June 2002).  Other recent developments in intellectual property protection are described in 
Annex 11. 
Item 170 
We seek that Ukraine will be in compliance with  the TRIPS Agreement by the date of accession, 
including the enforcement provisions, and that a commitment to that effe ct will be included in 
the protocol package.  WT/ACC/UKR/110/Add.2 
 Page 107 
 
 
 Answer:  
 Ukraine is fully cognizant of the obligations of WTO membership. It expects to deal fully 
with questions of its commitments in the context of preparation of the draft Report of the Working 
Party. 
Item 171 
We note that some important steps, in particular  legislative, have been taken during the last 
year.  We encourage Ukraine to continue on this path, as in some areas, legislation is not yet in 
line with the standards required by TRIPS.  Please continue to keep the Working Party 
informed about new legi slative developments. 
We remain concerned, however, with the level of enforcement and would appreciate to be kept 
updated by Ukraine on measures taken in this area. 
Answer:  
 See the answer to Item 169. - Transparency
 
 - Notification  
Item 172 The protocol package should contain a commitment concerning Ukraine's initial notifications 
for all WTO Agreements, ideally at the time of accession, and that regulations subsequently 
enacted by Ukraine which gave effect to the laws enacted to implement any of the WTO 
Agreements would also conform to the requirements of that Agreement. 
Answer:
 
 Ukraine is fully cognizant of the obligations of WTO membership.  It expects to deal fully 
with questions of its commitments in the context of preparation of the draft Report of the Working 
Party. 
- Trade Agreements  
Item 173 
It is customary to provide in the protocol pack age a clear description of the scope, nature, and 
status of all preferential arrangements.  This is  to ensure that the value of MFN commitments 
negotiated in the schedules is known to all parties. 
The information to date falls far short of this  goal, and we look to Ukraine consider how to 
improve it. 
The protocol package should contain a commi tment from Ukraine that it will observe 
Article XXIV of the GATT and Article V of the GA TS in its participatio n in trade agreements, 
and will ensure that the provisions of these WTO Agreements for notification, consultation and 
other requirements concerning free trade areas and customs unions are met from the date of WT/ACC/UKR/110/Add.2 
Page 108  
 
 accession, and that any subsequent legislation or regulations enacted or altered under these 
agreements would remain consistent with the provisions of the WTO. 
Ukraine should, upon accession, notify its Free  Trade Areas, Customs Union, and Economic 
Union Agreements for review by the Committ ee on Regional Trade Agreements (CRTA). 
Answer:
 
 Ukraine has entered into bilateral free trad e agreements with the following countries: 
Azerbaijan, Armenia, Georgia, L ithuania, Latvia, Estonia, Russian Federation, Belarus, Moldova, 
Tajikistan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan and Macedonia.  These agreements 
provide for non-application of customs duties, and fe es to exports and imports between the parties to 
the agreements for substantially all the trade.  Th e regime applied at the border for indirect taxes 
varies depending on the agreements. 
 For the information on the application of the free trade agreements please see Annex 12.  Ukraine is cognizant of the obligations of WTO membership.  It expects to deal fully with the 
questions of its commitments in the context of prep aration of the draft Report of the Working Party. 
 
_______________ 
  
  WT/ACC/UKR/110/Add.2
 Page 109ANNEX 1 
(with reference to Items 2 and Answer 4) 
 
The List of Goods, the Prices (Tariffs) of which are Subject to State Regulation  
Codes of Goods Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative acts 
01.11.51.100 Sugar beets Approval of minimum prices  The Cabinet of Ministers of 
Ukraine 
15.83.12  Sugar Approval of minimum prices  The Cabinet of Ministers of 
Ukraine The Law of Ukraine "On State Regulation of 
Sugar Production and Sale," No. 758-XIV, dated 
17 June  1999, and Resolutions of the Cabinet of 
Ministers of Ukraine (hereinafter the "CMU") 
"On Certain Issues of State Regulation of Sugar Production and Sale," No. 868, dated 2 June 2000 
"Certain Issues of State Regulation of Sugar 
Production and Sale," No. 142, dated 15 February 2002, and "On State Regulation of 
Sugar Production and Sale of," No. 1977, dated 
25 December 2002. 
22.08 30 -  22.08 90190 Whiskey, rum and tafia, gin and 
yalivtseva nastoyka (liqueur), 
other Approval of minimum prices  The Cabinet of Ministers of 
Ukraine 
22.08 10100 Bitter aromatic beverages with 
content of spirits in volume from 
44,2 to 49,2% Approval of minimum prices  The Cabinet of Ministers of 
Ukraine 
22.08 20 Spirits (including cognac and 
brandy) obtained by distilling 
grape wine or grape mark Approval of minimum prices  The Cabinet of Ministers of 
Ukraine 
22.08 90310 - 
22.08 90390 Vodka; plum, pear or cherry 
nastoyka (excluding liqueurs) Approval of minimum prices  The Cabinet of Ministers of 
Ukraine 
22.08 90510 - 
22.08 90790 Other spirits beverages, liqueurs 
and other alcoholic beverages Approval of minimum prices  The Cabinet of Ministers of 
Ukraine The Law of Ukraine "On State Regulation of 
Production and Turnover of Ethyl, Cognac and 
Fruit Spirits, Alcoholic Beverages and Tobacco 
Goods," No.481/95-VR, dated 19 December 1995, and the Resolution of the 
CMU "On Introduction of Minimum Prices on 
Domestic and Imported Vodka and Distillery Goods," No. 700, dated 21 June 2001. 
70.10 ex 
7010.1000 
7010.2000 Deposit prices on glass tare Establishment of the fixed and 
minimum prices or deposit price 
caps The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding 
Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and normative documents of local authorities  
 WT/ACC/UKR/110/Add.2 
Page 110 Codes of Goods Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative acts 
7101-7118 Prices of precious metals in 
articles and scrap and precious 
stones purchased from population Establishment (approval) of 
prices The Ministry of Finance of 
Ukraine in agreement with the 
Ministry of Economy of Ukraine and National Bank of Ukraine The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, the Order of the Ministry of 
Finance of Ukraine "On Approval of Prices on Precious Metals Purchased from Population in 
Articles and Scrap," No. 999, dated 
26 November 2002, and the Order of the Ministry 
of Finance of Ukraine "On Approval of Prices on Precious Metals and Precious Stones Purchased 
from Population," No. 228, dated 
6 November 1998. 
4901-4911 Norm of production profitability 
(in the amount of 15%) in case 
of issuance of printed material at the expense of the state budget and delivery of such material to consumers (norm of profitability 
in the amount of 5%) Establishment of profitability 
norms  It is established by the Ministry 
of Education and Science of 
Ukraine, Derzhkomteleradio (State Committee for Television and Radio of Ukraine) and other central authorities of the 
executive power, which place 
state order on issuance of printed produce The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996. 
2716 Tariffs on electricity supplied to 
the population for domestic (home) needs Establishment of retail tariffs The National Commission for 
Regulation of Electricity The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and Executive Authorities of City Councils Regarding 
Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and the Resolution of the 
National Commission for Regulation of 
Electricity (hereinafter the "NCRE") "On Tariffs 
on Electricity Supplied to Population and 
Populated Areas," No. 309, dated 10 March 1999. 
  WT/ACC/UKR/110/Add.2
 Page 111Codes of Goods Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative acts 
2711 Wholesale price caps of 
enterprises for natural gas used 
for needs of population and budget organizations Establishment of wholesale 
price caps The National Commission for 
Regulation of Electricity The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and the Resolution of the 
NCRE "On the Approval of Wholesale Price Caps on the Natural Gas Used for Needs of Population, 
and Tariffs on Services on Transportation and 
Distribution of the Natural Gas to Consumers of 
Ukraine," No. 337, dated 18 March 1999. 
2711 Retail prices of natural gas used 
for needs of population Establishment of retail prices The National Commission for 
Regulation of Electricity The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and the Resolution of the 
NCRE "On Retail Prices on the Natural Gas Used 
by Population for Communal-General Needs," No. 310, dated 10 March 1999. 
9021 Prices on prosthetic and 
orthopedic appliances and 
technical means for preventive measures as to disablement and 
rehabilitation Establishment of price The Ministry of Labor of 
Ukraine The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No.1548, dated 
December 25, 1996. 
  Prices on products of hunting, 
including wild fowl supplied for export Establishment of price Derzhkomlisgosp (State 
Committee for Forestry of Ukraine) in agreement with the 
Ministry of Economy of Ukraine 
for all users of hunting grounds The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and Executive Authorities of City Councils Regarding 
Price (Tariff) Regulations," No. 1548, dated 
25 December 1996. 
 Prices on hunting trophies 
obtained by foreign citizens Establishment of price caps Derzhkomlisgosp in agreement 
with the Ministry of Economy of 
Ukraine The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding 
Price (Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of State 
Committee for Forestry of Ukraine "On the 
Approval of Price Caps on Hunting Trophies Obtained by Foreign Citizens and Tariff Caps on 
Services Provided to such Citizens," No. 26, dated 
28 February 2002.  
 WT/ACC/UKR/110/Add.2 
Page 112 Codes of Goods Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative acts 
2701-2710 Prices on fuel-energy resources 
(coal, coal briquettes, common 
stove fuel, burning kerosene, fuel peat, firewood, peat 
briquettes and compressed gas) 
supplied to population for domestic (home) needs Establishment of prices and 
profitability caps or declaration The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and normative documents of 
local authorities 
0402.29 11 Profitability caps and trade 
mark-ups for preparations of 
infant nutrition Establishment of profitability 
caps and trade mark-ups The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and 
Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and normative documents of 
local authorities 
 Trade mark-ups for medicines 
and produce of medical purposes mentioned in the list of domestic 
and imported medicines and 
produce for medical purpose, prices of which are subject to 
state regulation Establishment of trade mark-ups The Council of Ministers of the 
Autonomous Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of 
Powers of the Executive Power Authorities and Executive Authorities of City Councils Regarding 
Price (Tariff) Regulations," No. 1548, dated 
25 December 1996, and normative documents of local authorities 
  
  WT/ACC/UKR/110/Add.2
 Page 113ANNEX 2 
(with reference to Item 2) 
 
The List of Services, Prices (Tariffs) of which are Subject to State Regulation  
Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Tariffs on transportation of cargo by 
railway transport within Ukraine and 
services related thereto Establishment of tariffs The Ministry of Transpor t 
of Ukraine in agreement 
with the Ministry o f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the 
Ministry of Transport of Ukraine "On the Approval of Tariffs on Transportation 
of Cargo by Railway Transport of Ukraine and Coefficients Applied to such Tariffs," No. 551, dated 15 November 1999. 
Tariffs for work rela ted to processing 
of foreign commercial and transit cargo in sea and river ports (berths), 
and charges and fees on services 
provided to foreign shipping in sea and 
river ports of Ukraine Establishment of tariffs The Ministry of Transpor t 
of Ukraine in agreement with the Ministry o
f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the 
Ministry of Transport of Ukraine "On the Approval of Tariffs on Works and 
Services Provided to Cargo Owners in Sea Ports of Ukraine," No. 392, dated 31 October 1995. 
Tariffs on transportation of passengers, 
luggage and cargo by railway transport 
in international and domestic communication (excluding suburban 
services) Establishment of tariffs The Ministry of Transpor
t 
of Ukraine in agreement 
with the Ministry o f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, the Order of the Ministry of Transport of Ukraine "On the Approval of Tariffs on Transportation 
of Passengers, Luggage and Cargo by Railway Transport in International 
Communication East – West," No. 853, dated 2 December 2002, and the Orde
r 
of the Ministry of Transport of Ukraine "On the Approval of Tariffs on 
Transportation of Passengers, Luggage and Cargo by Railway Transport in 
Domestic Communication," No. 103, dated 19 February 2001. 
Tariffs on transportation of passengers and luggage by buses on inter-city and inter-oblast routes Establishment of tariff caps The Ministry of Transpor
t 
of Ukraine in agreement with the Ministry o
f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the 
Ministry of Transport of Ukraine "On the Approval of Tariffs on Transportation 
of Passengers and Luggage by Buses of Inter-City and Inter-Oblast Routs," 
No. 380, dated 22 July 1999. 
Air-navigation fees for air-navigation 
services to aircraft in the airspace o f 
Ukraine Approval of fee rates The Ministry of Transpor t 
of Ukraine in agreement 
with the Ministry o f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of Transport of Ukraine "On the Approval of Fee Rates on Air-
Navigation Services of Aircraft in the Airspace of Ukraine," No. 145, dated 
22 April 1997.  
 WT/ACC/UKR/110/Add.2 
Page 114 Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Airport fees for servicing aircraft and 
passengers in airports of Ukraine 
(landing and take-off of an aircraft, servicing of passengers in an airport, 
stay of an aircraft  over the designated 
time and ensuring aviation security) Approval of fee rates The Ministry of Transpor
t 
of Ukraine in agreement 
with the Ministry o f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and 18 orders of the Ministry of Transport of Ukraine (as to each airp ort separately). 
Tariffs for basic services o f 
telecommunications provided in the 
territory of Ukrain e, and services o f 
international communication Establishment of tariff caps Derzhkomzvyazok (State 
Committee fo r 
Communications o f 
Ukraine) in agreemen t 
with the Ministry o f 
Economy of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order o f 
State Committee for Communications of Ukraine "On the Approval of Tarif f 
Caps on the Basic Services of Telecommunication and Tariffs on Payment o f 
State Pensions and Pecuniary Aid," No. 120, dated 7 June 2002. 
Tariffs for universal services of mail communication Establishment of tariffs Derzhkomzvyazok in 
agreement with the 
Ministry of Economy o
f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order o f 
State Committee for Communications of Ukraine "On the Approval of Tariffs 
on Universal Services of Mail Communication," No. 166, dated 
18 October 2001. 
Tariffs for acceptance and delivery o f 
domestic periodicals under the 
subscription Establishment of tariffs Derzhkomzvyazok in 
agreement with the 
Ministry of Economy o f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order o f 
State Committee for Communications of Ukraine "On the Approval of Tariffs on Subscription and Delivery of Periodicals," No. 142, dated 
21 September 2001. 
Tariffs for services related to payment and delivery of pensions and pecuniary 
aid to population, which are paid from 
the funds of the Pension Fund o
f 
Ukraine Establishment of tariffs Derzhkomzvyazok in 
agreement with the 
Ministry of Economy o f 
Ukraine and the Pension 
Fund of Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order o f 
State Committee for Communications of Ukraine "On the Approval of Tariffs 
Caps on the Basic Services of Telecommunication and Tariffs on Payment o f 
State Pensions and Pecuniary Aid," No. 120, dated 7 June 2002. 
Tariffs for water de livery provided by 
Production Association 
"Ukrpromvodchormet" an Enterprise "Kryvbaspromvodpostachannya" Agreeing on the limit level
of tariffs The Ministry of Industrial 
Policy of Ukraine in 
agreement with the Kyiv and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of Industrial Policy of Ukraine "On Improvement of Tariff Regulations 
on Services on Water Delivery," No. 225, dated 29 June 1999.  
  WT/ACC/UKR/110/Add.2
 Page 115Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Payment cap for residence in student 
hostels Establishment of payment
cap The Ministry of Education 
and Science of Ukraine, 
the Ministry of Health Protection of Ukraine and 
other ministries and 
central authorities of the executive power unde
r 
competence of which 
there are teaching and 
educational institutions, in agreement with the 
Ministry of Finance o
f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of Education and Science of Ukraine, the Ministry of Health Protection 
of Ukraine and the Ministry of Finance of Ukraine "On Establishment o
f 
Payment Cap for Residence in [Student] Hostels," No. 453/362/260, dated 21 December 1998. 
Payment caps for residence in hostels 
of the system of the Ministry o f 
Interior of Ukraine Establishment of payment 
cap The Ministry of Interior o f 
Ukraine in agreement with 
the Ministry of Finance o f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996. 
Tariffs for transportation of natural gas, oil, oil products, ammonia and 
ethylene substances supplied to 
consumers of Ukraine by trun
k 
pipelines Establishment of tariffs The National Commission 
for Regulation o f 
Electricity The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and Resolutions o f 
the NCRE "On Tariffs on Transportation of Oil by Trunk Pipelines through the Territory of Ukraine," No. 1092, dated 26 August 1999, "On the Approval o
f 
Tariffs on Transportation and Supply of the Natural Gas," No. 73, dated 
29 January 2001, "On Tariff on Transportation of Ammonia of the Russian Origin through the Territory of Ukraine by a Trunk Pipeline," No. 1285, dated 
28 December 2000, "On Tariff on Transit and Transportation of Liquid 
Ammonia by a Trunk Ammonia Pipeline," No. 252, dated 23 January 2001, and "On Tariffs on Transportation of Liquid Ammonia by Trunk Pipelines," 
No. 1067, dated 27 September 2002. 
Tariffs for storage of natural gas Establishment of tariffs The National Commission 
for Regulation o f 
Electricity The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996, and the Resolution o
f 
the NCRE "On Tariffs on Storing, Pumping-in and Extracting of the Natural 
Gas by Subsidiary Enterprise "Ukrtransgas," No. 447, dated 27 April 2000. 
Tariffs for transportation of natural gas 
by distributive networks and supply o f 
natural gas Establishment of tariffs The National Commission 
for Regulation o f 
Electricity The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and Resolutions o f 
the NCRE on the approval of tariffs on transportation of the natural gas by distributive pipelines for regional enterprises.  
 WT/ACC/UKR/110/Add.2 
Page 116 Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Tariffs for services provided to foreign 
citizens who are users of hunting 
grounds Establishment of tariff caps Derzhkomlisgosp in 
agreement with the 
Ministry of Economy o f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order o f 
State Committee for Forestry of Ukraine "On the Approval of Price Caps on 
Hunting Trophies Obtained by Foreign Citizens and Tariff Caps on Services 
Provided to such Citizens," No. 26, dated 28 February 2002. 
Prices of licenses for hunting wild hoofed hunting animals and bear Establishment of prices Derzhkomlisgosp in 
agreement with the 
Ministry of Economy o
f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and the Order of the 
Ministry of Forestry of Ukraine "On the Approval of Price of Hunting Licenses for Hunting in Hunting Grounds of Ukraine for Citizens of Ukraine and Foreign 
Citizens," No. 85, dated 8 August 1996. 
Amount of payment for services 
provided to drunk persons by medical 
departments of sobriety attached to interior authorities Establishment of the amoun
t
of payment, price caps o r
profitability caps The Council of Ministers 
of the Autonomous 
Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative documents of local authorities 
Tariffs for services  provided by the 
state-owned and communal medical 
and preventive institutions of health 
protection Establishment of prices and
profitability cap o r
declaration The Council of Ministers 
of the Autonomous 
Republic of Crimea, 
oblast, the Kyiv and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative 
documents of local authorities 
Tariffs on inventory of real estate, 
legalization of ownership rights to real 
estate objects and registration of such 
rights Establishment of tariffs,
tariff caps and profitability
cap or declaration The Council of Ministers 
of the Autonomous 
Republic of Crimea, 
oblast, the Kyiv and 
Sevastopol City State Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative 
documents of local authorities 
Tariffs for ritual services required fo r 
burial Approval of tariffs and
profitability cap o r
declaration The Council of Ministers 
of the Autonomous 
Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Prices 
(Tariffs) Regulation," No. 1548, dated 25 December 1996, and normative documents of local authorities  
  WT/ACC/UKR/110/Add.2
 Page 117Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Tariffs for transportation of passengers 
and price of tickets in city passenge r 
vehicles, i.e. the underground, bus, tram and trolley bus (which works in 
an ordinary regime of traffic) Approval of tariffs and tarif
f
caps or profitability cap The Council of Ministers 
of the Autonomous 
Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations, executive authorities o
f 
the L’viv and Kryviy Rig 
City Councils The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative documents of local authorities 
Tariffs for transportation of passengers and luggage by passenger electric 
transport (trolley bus) in inter-city and 
suburban communication Establishment of tariff caps The Council of Ministers 
of the Autonomous 
Republic of Crimea The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative 
documents of the Council of Ministers of the Autonomous Republic of Crimea 
Tariffs for transportation of passengers and luggage by railway transport in suburban communication  Approval of tariff caps Departments of railways 
in agreement with the Council of Ministers o
f 
the Autonomous Republic 
of Crimea, oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996. 
Tariffs for transportation of passengers and luggage by motor transport (which works in an ordinary regime of traffic) 
in inter-city, within oblast and 
suburban communication Approval of tariff caps The Ministry of Transpor
t 
of Ukraine in agreement with the Council o
f 
Ministers of the 
Autonomous Republic o f 
Crimea, oblast, the Kyiv 
and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996, the Order of the 
Ministry of Transport of Ukraine "On the Approval of the Standard Forms o
f 
Tickets for Trip of Passengers and Transportation of Luggage by Moto r 
Transport and Tariffs Zones of Transpor tation of Passengers by Motor Transport 
in Suburban Routs," No. 278, dated 31 May 2000, and the Order of the Kyiv 
City Territorial-Production Association of Motor Transport "On the Approval o f 
Tariff Caps on Transportation of Passengers and Luggage in Inter-city within 
Oblast Routs," No. 75, dated 11 July 2001. 
Tariffs for transportation of cargo by 
railway spurs, on loading-unloading works and other services provided by 
enterprises of the industrial railway 
transport Approval of tariffs Ukrpromzaliztrans The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996, the Order of the 
Ukrainian Association of the State-owned Inter-
branch Enterprises of the 
Industrial Railway Transport "Ukrpromzaliztrans" of the Ministry of Transport of Ukraine "On the Approval of Tariffs on Transportation of Cargo by Railway 
Spurs, on Loading-Unloading Works and other Services Provided by Enterprises 
of the Industrial Railway Transport," No. 194, dated 5 November 2002.  
 WT/ACC/UKR/110/Add.2 
Page 118 Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Tariffs for services related to wate r 
supply and drainage systems provided 
by agents of entrepreneurial activity 
regardless of ownership types for all 
consumers, and complex of works 
related to supply of water to such agents and purification of the said 
water Establishment of tariffs,
tariff caps and profitability
cap or declaration The Council of Ministers 
of the Autonomous 
Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative documents of local authorities 
Tariffs for production of heat energy, as well as services related to heat supply provided by agents o
f 
entrepreneurial activity regardless o f 
ownership types for all consumers Establishment of tariffs,
tariff caps and profitabilitycap or declaration The Council of Ministers 
of the Autonomous Republic of Crimea, 
oblast, the Kyiv and 
Sevastopol City State Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations," No. 1548, dated 25 December 1996, and normative 
documents of local authorities 
Tariffs for services on cleaning, 
removing and destroying of hard 
domestic wastes and liquid sewage 
provided by agents of entrepreneurial 
activity regardless of ownership types 
for all consumers Approval of tariffs o r
profitability cap The Council of Ministers 
of the Autonomous 
Republic of Crimea, 
oblast, the Kyiv and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative 
documents of local authorities 
The limit amounts of payment fo r 
residence in hostels of individuals, foreigners and stateless persons who 
stay in Ukraine on legal grounds  Approval of amounts o
f
payment and payment caps
or  profitability cap The Council of Ministers 
of the Autonomous Republic of Crimea, 
oblast, the Kyiv and 
Sevastopol City State Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative 
documents of local authorities 
Tariffs for services of cable television Establishment of tariffs and
tariff caps or profitability
cap The Council of Ministers 
of the Autonomous 
Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations in agreement with the 
Ministry of Economy o
f 
Ukraine The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative documents of local authorities  
  WT/ACC/UKR/110/Add.2
 Page 119Description of goods or services prices 
(tariffs) which are subject to state 
regulation Form or nature of price 
regulation Authorities of the 
executive power which 
effectuate regulation Normative acts 
Payment caps for services provided by 
market places housing sellers of food 
and nonfood goods. Establishment of payment o r
payment caps The Council of Ministers 
of the Autonomous 
Republic of Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price 
(Tariff) Regulations," No. 1548, dated 25 December 1996, and normative documents of local authorities 
 WT/ACC/UKR/110/Add.2 
Page 120  
 
 ANNEX 3 
(with reference to Item 12) 
Methods to Calculate Retail Tariffs  for Electric Energy Deliveries
 
 1. Calculations of expected average purchasing price for the electric energy for the month in 
question for which the retail tariff is establis hed are made in four stages, as below. 
 1.1 Actual average purchasing price for the elec tric energy determined within the month prior 
to the last month in question is calc ulated, subsidy corrections included: 
Цр-2ОРфакт * Ер-2ОРфакт +Цр-2Н* Ер-2Нфакт +∑Др 2 
----------------------------------------------------------------------  
Цр-2С3факт = 
Ер-2ОРфакт +Ер-2Нфакт   
(UAH/Megawa
tt per year 
 
 Цр-2Орфакт  is a price paid by the licensee purchasing the electric energy for WHOLESALE 
ELECTRIC ENERGY MARKET in the month prior to the last month in question (according to the 
electric energy sales act) , (UAH/Megawatt per year). 
 Цр-2Н is the price for which the licensee has purchased the electric energy according to an 
agreement directly from the producing company or th e tariff for the electric energy supplied by an 
electric power station owned by the licensee in the month prior to the last month in question 
(UAH/Megawatt per year). 
 Др-2 is the total sum of subsidies granted for the licensee and adopted by the National 
Committee for Regulation of Electric En ergy Industry licensee in the mo nth prior to the last month in 
question, UAH. 
 Ер-2Орфакт  is the actual amount of the electric energy purchased by the licensee for 
WHOLESALE ELECTRIC ENERGY MARKET in the m onth prior to the last month in question 
(according to the electric energy sales act), (UAH/Megawatt per year). 
 Ер-2Нфакт  is the actual amount of the electric energy purchased by the licensee directly from 
the producing company or the electric energy received by an electric power station owned by the licensee in the month prior to the last month in question (UAH/Megawatt per year). 
 1.2 Expected average purchasing price for the electric energy for the month prior to the last 
month in question is calculated, subsidy corrections not included: 
Цр-2ОР* Ер-2ОР+Цр-2Н* Ер
-2Н 
----------------------------------------------------------------------  
Цр-2С3= 
Ер-2ОР+Ер2Н  
(UAH/Megawa
tt per year 
 
 Цр-2ОP is an expected wholesale market price in the month prior to the last month in 
question (confirmed by National Committee for Regulation of Electric Energy Industry), 
(UAH/Megawatt per year). 
 Цр-2Н is the price for which the licensee has purchased the electric energy according to an 
agreement directly from the producing company or th e tariff for the electric energy supplied by an 
electric power station owned by the licensee in the month prior to the last month in question 
(UAH/Megawatt per year).  WT/ACC/UKR/110/Add.2 
 Page 121 
 
 
  Ер-2ОP is the expected amount of the electric energy purchased by the licensee for 
WHOLESALE ELECTRIC ENERGY MARKET in the mo nth prior to the last month in question, 
Megawatt per year (according to expected balance of the electric energy adopted by the Ministry of 
Fuel and Electric Energy and tech nical/business indices calculated as  based upon this balance for the 
month concerned). 
 Ер-2Н is the expected amount of the electric en ergy purchases by the licensee directly from 
the producing company or the expected amount of the electric energy received by an electric power 
station owned by the licensee in the month prior to the last month in question, UAH/Megawatt per 
year (according to expected balance of the electric energy adopted by the Ministry of Fuel and 
Electric Energy and technical/business indices cal culated as based upon this balance for the month 
concerned). 
 1.3 Deviation of the payment amount for the el ectric energy purchased is determined, i.e. 
 Ср-2=(Цр-2С3факт -Цр2С3)*(Ер-2Орфакт +Ер2Нфакт )+Ср-2кор (UAH), 
 Цр-2С3факт  is the actual average purchase price for the electric power determined in the 
month prior to the last month in question is calcula ted, subsidy corrections included (calculated by the 
licensee), UAH/Megawatt per year. 
 Цр-2С3 is the expected average purchasing price for the electric energy for the month prior to 
the last month in question, corrections for payment amount deviations not included (calculated by the 
licensee), UAH/Megawatt per year. 
 Ер-2ОP факт  is the actual amount of the electric energy purchased by the licensee for 
Wholesale Electric Energy Market in the month prior to the last month in question, Megawatt per year (according to the electric energy sales agreement). 
 Ер-2Нфакт  is the actual amount of the electric energy purchases by the licensee directly from 
the producing company or the electric energy receiv ed by the licensee from the electric power station 
owned by him in the month prior to the last month in question, UAH/Megawatt per year (according to 
the electric energy sales agreement). 
 Ср-2кор – cost of the corrections made for the standard technology expenses of the electric 
energy determined in compliance with the "Tempo rary Enactment for Procedures of Submission, 
Determination and Adoption of Economic Rates Of Standard Technologic Expenses of Electric 
Energy for Licensees Transferring Electric Energy by Local Electric Power Networks" adopted by the 
decree of the National Committee for Regula tion of Electric Energy Industry dated 
30 November 2001, No 1179. 
 No DCp-2 кор is calculated for the licensees, for which the tariffs for transfer of the electric 
energy and the retail tariffs are calculated accord ing to the Decree issued  by the National Committee 
for Regulation of Electric Energy Industry dated 10.042001 No 348 concerning definition of the expected purchasing price for the electric energy for a month in question coming next after that 
reported. 
 1.4 The expected average purchasing price for the electric energy for a month in question for 
which the retail tariffs are estab lished shall be calculated, i.e. 
Цр-ОР* Ер-ОР+ЦрН * ЕрН+Ср-2 
----------------------------------------------------------------------  
ЦрС 3= 
ЕрОР +ЕрН  
(UAH/Megawa
tt per year 
 WT/ACC/UKR/110/Add.2 
Page 122  
 
  ЦрО P is an expected wholesale market price in a month in question (confirmed by the 
National Committee for Regulation of Electric Energy Industry), (UAH/Megawatt per year). 
 ЦрН  is the price for which the licensee has purchased the electric energy according to an 
agreement directly from the producing company or th e tariff for the electric energy supplied by an 
electric power station of the licensee in the month in question (UAH/Megawatt per year). 
 ЕрОP is the expected amount of the electric energy purchases by the licensee at the wholesale 
electric energy market in the month in question, Megawatt per year (according to expected balance of 
the electric energy adopted by the Ministry of Fu el and Electric Energy and technical/business indices 
calculated as based upon this balance for the month concerned). 
 ЕрН is the expected amount of the electric energy purchases by the licensee directly from the 
producing company or the expected amount of the electric energy received by an electric power 
station owned by the licensee in the month in question, UAH/Megawatt per year (according to 
expected balance of the electric energy adopted by the Ministry of Fuel and Electric Energy and 
technical/business indices calculated as base d upon this balance for the month concerned). 
 DCP-2 are deviations of the amount paid off for the electric energy purchased, UAH 
(calculated by the licensee). 
 2. Calculation of the retail tariff for the el ectric energy consumed is to be made using the 
formulae: 
 Црс3  
T
ij = ------------------------------- + TjM + Ti П 
 П (1-kl) (=)  
 
 i = a group of a user in compliance with standard procedures (methods) adopted by the 
National Committee for Regulation of Electric Energy Industry; 
 j = a class of a user in compliance with standard procedures (methods) adopted by the 
National Committee for Regulation of Electric Energy Industry; 
 l = classes of voltages in the networks that tr ansferred the electric energy up to the end user; 
 Црс3 = expected average purchasing price for the electric energy for a month in question (p) 
for which the retail tariffs for the electric energy  are established, UAH/Megawatt per year (to be 
calculated by the licensee as based upon th e methods described in the paragraph 1). 
 kl = economic coefficient of the standard technologic spending of the electric energy at the 1st 
class of voltage. To be determined as a ratio of the standard technologic spending of the electric 
energy at corresponding classes of the voltage to the electric energy amounts transferred to the local 
power networks with the correspondent class of voltage for transfer for the users at the territory of 
licensed activities within a period concerned. 
 TjM = the tariff for the electric energy transfer by the local power supply networks, 
UAH/Megawatt per year (confirmed by the the Nati onal Committee for Regulation of Electric Energy 
Industry; 
 Ti П = the tariff for the electric energy supply, UAH/Megawatt per year, to ensure coverage of 
the licensee expenses for delivery of the electric energy to the users.  WT/ACC/UKR/110/Add.2 
 Page 123 
 
 
  Example of calculation of retail tariff for electric energy. 
Data Unit July August 
Expected wholesale market price UAH/Megawatt per 
year 99.5 100.0
Actual price of electric power 
purchases at wholesale power market UAH/Megawatt per 
year 78.15 
Subsidy amount UAH 3,514,647 4,271,296
Amounts of electric energy purchases 
at wholesale power market Megawatt per year 216,180 
(expected) 
217,292 
(actual) 246,990
(expected)
Tariff for electric energy supplied by electric power station directly to 
licensee delivering electric energy 
under regulated tariffs UAH/Megawatt per 
year 24.7 24.7
Amounts of electric energy purchases 
from electric power station Megawatt per year 690 
(expected) 
720 
(actual) 594
(expected)
Economic coefficient of standard technology spending of electric 
power   
1st class % 7.41 7.19
2nd class % 13.02 12.85
Tariff for electric energy transfer by local power networks 
1st class UAH/Megawatt per 
year 5.55 5.55
2nd class UAH/Megawatt per 
year 29.06 29.06
Tariff for supply of electric power 
1st group UAH/Megawatt per 
year 2.15 2.15
 
 The example of the calculation was given on the assumption that the licensee was not 
concerned with license fees of the users. 
 Calculation of actual average purchasing price fo r July corrected with regard to subsidies. 
 78.15x217292+24.7x720+3514647 
Цр-2С3факт  = ------------------------------------------------------------ 
 217292+720  
94.09 UAH/ 
Megawatt per year 
 
 Calculation of expected average purchasing price for July not corrected with regard to amount 
of payment deviation. 
 99.5x216180+24.7x690 
Цр-2С3 = ------------------------------------------------------------ 
 216180+690  
99.26 UAH/ 
Megawatt per year 
 
 Calculation of payment deviation in July.  ∆Cp-2=(94.09-99.26)x(217292+720)=-UAH 1127122.04 WT/ACC/UKR/110/Add.2 
Page 124  
 
  Calculation of average purchase price for August. 
 100x246990+24.7x594-1127122.04 
Цр-С3 = ------------------------------------------------------------ 
 246990+594  
95.27 UAH/ 
Megawatt per year 
 
 Calculation of retail tariffs for August.  Tariff for users of the 1
st class, 1st group. 
 T11 = 95.27 + 5.55+2.15=110.4 UAH/Megawatt per year  1-0.0719  Tariff for users of the 2nd class, 1
st group. 
 T12 = 95.27 + 29.06+2.15=149.0 UAH/Megawatt per year  (1-0.0719)x(1-0.1285)  WT/ACC/UKR/110/Add.2 
 Page 125 
 
 
 ANNEX 4 
(with reference to Item 13) 
Minimal Indicative Prices  
The Ministry of Economy and European Integration of Ukraine Order No.112 Of 
30 April 2003 "On Approval of the List of Mini mal Indicative Price for Some Products, Exported 
from Ukraine in May 2003" 
To implement Decrees of the President of Ukraine "On Measures to Improve Market and 
Pricing Policy in Foreign Economic Activity" No. 124/96 of 10 February 1996 and "On Changes in 
the Structure of Central Executive Authorities" No. 1573/99 of 15 December 1999, I hereby order to:  
Approve of the list of minimal levels of indicat ive prices for some type of products, exported 
from Ukraine in May 2003 (attached). 
Grounds:  minutes of market meetings in the Ministry of Economy and European Integration 
of Ukraine No. 4 of 24 April 2003, No. 9 of 22 April 2003, No. 5 of 22 April 2003, No. 27 of 
24 April 2003.  
Minister   V. Khoroshkovsky  
 
APPROVED by 
the Order of the Ministry of Economy 
and European Integration of Ukraine 
No. 112 of 30 April 2003  
 
The List of minimal levels of indicative pri ces for some types of products, exported from 
Ukraine in May 2003  
(USD/t, FOB ports of Ukraine)1 
Products Prices 
1. Armature2:     
if supplied to the Middle East:     
product position 7214 according to the UCP FEA:     
diameter up to 10 mm  225  
diameter over 10 mm  215  
product position 7213 according to the UCP FEA:  217  
code 7228 20 19 00 according to the UCP FEA:     
diameter up to 10 mm  225  
diameter over 10 mm  215  
if supplied to the USA:     
product positions 7213, 7214, 7228 according to the UCP FEA:  225  
2. Rolled wire2 if supplied to the USA:     
                                                      
1 Unless otherwise specified 
2 Ports of the Azov Sea, Zaporizhya, Dnipropetrovsk -  US$5/MT discount. WT/ACC/UKR/110/Add.2 
Page 126  
 
 Products Prices 
diameter 5.5 mm  235  
diameter over 5.5 mm  235  
3. Billet2 190  
if supplied to Egypt:  200  
4. Hot-rolled coil (1- З кп, сп, пс, 08 кп, пс) 2 and  3 215  
if supplied to Mexico, Canada, Argentina, India and Egypt  225  
if supplied to the USA  240  
5. Hot-rolled sheet, thickness 8 - 50 mm (3 сп/пс, А36)2  and 3  210  
if supplied to Latin America and India 220  
if supplied to the USA:     
A36  280.49  
A572  302.35  
A516  304.69  
API-2H  414.08  
A283  278.34  
ABC A/B  282.24  
A515  302.38  
6. Seamless pipes of ferrous metals (except foundry iron) if supplied to EU countries:  
for oil and gas pipelines, external diameter up to 168,3 mm  
(code 7304 10 10 00 according to the UCP FEA)  278  
for oil and gas pipelines, external diameter over 168,3 mm, but not exceeding 406,4 
mm (code 7304 10 30 00 according to the UCP FEA)  296  
other circular pipes of iron and plain steel, external diameter up to 168,3 mm  
(code 7304 39 91 00 according to the UCP FEA)  296  
other circular pipes of iron and plain steel, external diameter over 168,3 mm, but not 
exceeding 406,4 mm (code 7304 39 93 00 according to the UCP FEA)  282  
7. Ferrosilicon-65  345  
Ferrosilicon-75  430  
8. Ferromanganese silicon     
P – 0.35 %  385  
P – 0.50 %  375  
P – 0.35 % BT4 355  
P – 0.50 % BT4 335  
P – 0.60 % BT4 330  
if supplied to EU countries, CIF5    
C > 0.5 %  EURO492  
C < 0.5 %  EURO630  
C < 0.05 %  EURO750  
9. Carbamide  108 - 114  
10. Ammonia  140 - 150  
if supplied to the USA:  145 - 155  
11. Live cattle6    
weight up to 350 kg/head  1,200 – 1,300  
weight over 350 kg/head  1,000 – 1,100  
12. Live rams and sheep6    
weight up to 30 kg/head  1,050 – 1,200  
weight over 30 kg/head  1,000 – 1,100  
13. Cattle skins wet-salted and otherwise preserved (group 4101 according to the UCP 
FEA), non-circumscribed, automatic takeoff 6 and 7    
                                                      
3 In case of supplies of metal products with a chem ical composition of higher quality the price may be 
higher. 
4 BT – basic ton of ungraded alloy. 
5 FOB price is EUR19.5 different to CIF price. 
6 On FOB terms – Black Sea ports or DAF – Ukrainian border.  WT/ACC/UKR/110/Add.2 
 Page 127 
 
 
 Products Prices 
1st class  1,450 – 1,650  
2nd class 1,300 – 1,500  
3rd class  1,200 – 1,350  
4th class  1,100 – 1,250  
Weight up to 10 kg, 1st class  2,350 – 2,850  
14. 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  
15. Flax seed, grinded or non-grinded6 270  
16. Sunflower seed, grinded or non-grinded6 258  
17. Red flax seed6 150  
18. Electric power (USD/kWt/h) if supplied to Bulgaria, Moldova, Poland, Romania, 
Slovakia, Czech Republic and Hungary.8  0.02 - 0.021  
 
Chair of Foreign Economic 
Policy Administration   S. Kutsenko   
 
                                                                                                                                                                     
7 For wet-salted skins, non-circumscribed, manual takeoff, prices according to the class are reduced to 
10% respectively 
8 On DAF terms – Ukrainian border WT/ACC/UKR/110/Add.2 
Page 128  
 
 ANNEX 5 
(with reference to the Item 17) 
Ukraine's Investment Regime
 
 Law of Ukraine No.1560-XII of 18 January 1991 "On Investment Activities" is the 
fundamental legislative act governing investment ac tivities in the territory of Ukraine.  The Law 
determines general legal, economic and social conditi ons for investment activities in the territory of 
Ukraine, and aims at ensuring th e protection of rights, interests and property of investing entities 
irrespective of types of property ownership or th e nationality. The Law sets the same rules for both 
national and foreign investors. 
Specific features of the foreign investment regime  
 Specific features of the foreign investment regime are determined by Law of Ukraine  
No. 93/96-BP of 19 March 1996 "On the regime of foreign investment". 
 In accordance with the Law, foreign invest ors carrying out investment activities in the 
territory of Ukraine, are: 
- corporate bodies set up under legislatio n other than Ukraine's legislation; 
- natural persons - foreigners who do not have permanent residence in the territory of 
Ukraine and who have full legal capability; 
- foreign states, inter-governmental organiza tions and non-governmental organizations; and 
- other foreign investing entities which are defi ned as such in accord ance with Ukraine's 
legislation.  
 The company (enterprise) with foreign investment is a company of any legal structure set up 
under Ukraine's legislation with foreign participation in  its statutory fund of not less than 10 per cent.  
The company obtains the status of a company with foreign investment on the day that the foreign 
investment is recorded in its balance-sheet. 
 Foreign investment is investment by foreig n investors in objects of investment activities 
under Ukraine's legislation with the objective to obta in a profit or achieve a social effect.  Foreign 
investment may be made in any object, exce pt those prohibited by Laws of Ukraine. 
 Foreign investment may be made in the form of: 
- foreign currency which is determined as convertible by the National Bank of Ukraine; 
- Ukrainian currency - when reinvesting into the initial object of investment or any other 
object of investment under Ukraine's legisl ation provided that th e profit tax is paid; 
- any movable or immovable (real) property and related property rights; 
- shares, bonds, other securities, and also interest holder rights with regard to a corporate 
body set up under the legislation of Ukraine or  under the legislation of other countries, in 
hard currency terms; 
- monetary claims and rights to demand the payment of contractual obligations (obligee's 
rights) which (rights) are guaranteed by first-ra te banks and valued in hard currency and 
confirmed in accordance with la ws of the investor's country or with international trade 
practice; 
- any intellectual property rights the hard cu rrency value of which is confirmed in 
accordance with laws of the investor's coun try or international trade practice and also 
confirmed by an expert appraisal in Ukraine,  including copyrights, rights to inventions,  WT/ACC/UKR/110/Add.2 
 Page 129 
 
 
 utility models, designs, service and trade mark s, know-how and so on, legalized in the 
territory of Ukraine; 
- rights to carry out business activities, including rights to use mineral and other natural 
resources granted in accordance with legislat ion or contracts, the hard currency value of 
which is confirmed in accordance with laws of the investor's country or international 
trade practice; and 
- other valuables in accordance with Ukraine's legislation. 
 Foreign investment may be made in the following ways: 
- holding an interest in companies which are se t up jointly with Ukrainian corporate bodies 
and natural persons, or acquiring an  interest in existing companies; 
- formation of companies wholly owned by fore ign investors, of branch offices and other 
separate divisions of foreign corporate bodies, or complete acquisition of existing 
companies; 
- acquisition of personal or real property not prohibited in Ukraine, including houses, 
apartments, premises, equipment, transport vehicles and other property through immediate possession of property  and property complexes or in the form of shares, bonds 
other securities; 
- independently, or jointly with Ukrainian corporate bodies or natural persons, acquisition 
of rights to use land and natural reso urces in the territory of Ukraine; 
- acquisition of other property rights; 
- carrying out business activities according to production sharing agreements; and 
- in other manners not prohibited by Laws of Ukraine, including on the basis of contracts 
with Ukraine's business entities w ithout setting up a corporate body.  
 According to Article 19 of the Law, comp anies with foreign inve stment independently 
determine conditions for the sale of their products. 
 Law of Ukraine No. 1457-III of 17 February 2000 "On removal of taxation discrimination 
against business entities formed on the basis of property and funds of domestic origin" provides that in the territory of Ukraine, business entities or ot her corporate bodies, their branch offices, separate 
divisions, including non-residents' permanent establishments, formed with use of foreign investment, irrespective of the form of invest ment and of when the investment was made, shall be subject to the 
same national regime of currency regulation and of  levying taxes, and other mandatory payments as 
set by Laws of Ukraine with regard to co mpanies formed without foreign investment. 
 Ukraine's Presidential Decree No. 748/98 of 7 July 1998 "On certain issues of foreign 
investment" regulates issues of making foreign inve stment in the form of acquiring state debentures. 
 Law of Ukraine No. 977-XIV of 15 July 1999 "On amendment of certain Laws of Ukraine 
with objective to stimulate investment activities"  has made amendments to Law of Ukraine "On 
value-added tax", under which amendments the value- added tax shall not be levied on transfers of 
fixed assets as contributions to a corporate body's statutory fund in order to form its integral property 
complex in exchange for interest holder's rights issued by it, including during the importation of fixed 
assets into the customs territory of  Ukraine (except for goods subject to excises) or their exportation 
from the customs territory of Ukraine.  If in the process of foreign investment, there appear disputes 
between foreign investors and the state, with regard  to issues of the state regulation of foreign 
investment and operations of compan ies with foreign investment, such di sputes shall be tried in courts 
of Ukraine, unless otherwise provided by Ukraine's in ternational treaties.  All the other disputes shall 
be tried in Ukraine's general and/or commercial juri sdiction courts, or, as agreed by the parties, in 
arbitration courts, including abroad. WT/ACC/UKR/110/Add.2 
Page 130  
 
  In accordance with Article 3 of Law of Ukraine No. 697-XII of 7 February 1991 "On 
ownership of property", foreign investors shall be entitled to own houses, structures, facilities and 
other property of social and cultural, and production designation. 
 In order to protect competition and create a favourable investment climate, Law of Ukraine 
No. 1457-III of 17 February 2000 "On removal of taxation discrimi nation against business entities 
formed on the basis of property and funds of domestic origin" has implemented the single national 
regime of currency and tax regulation for compan ies with 100 per cent Ukrainian capital and those 
with foreign investment. 
 Ukraine has signed agreements on encouragemen t and mutual protection of investment with 
more than 50 countries. 
Guaranties to foreign investors
 
 Law of Ukraine No. 93/96 of 19 March 1996 "On the Regime of Foreign Investment" 
provides that foreign investment shall not be nationalized.  The governmental bodies shall not have 
the right to comandeer foreign investment except  when taking rescue measures during natural 
disasters, catastrophes, epidemics and epizootics.  Under such circumstances, the foreign investor 
shall be guaranteed adequate and effective compen sation.  Foreign investors shall be entitled to 
damages, including for lost profits and moral da mages, inflicted on them as a result of actions 
omissions or improper performance by Ukraine's governmental bodies or officials of their duties 
provided by legislation, with regard to foreign investors. 
 When activities are terminated, the foreign investor is guaranteed the duty-free return of his 
investment in kind or in the curren cy of investment in the amount of the actual contribution (allowing 
for the possible decrease in the size of the statutory fund), and also of income from the investment in 
monetary form or in the form of products at the ac tual market value on the moment of the termination 
of investment activities (Article 11 of the Law).  Article 12 provides guaran ties of remitting profits, 
incomes, and other funds generated by foreign invest ment, in particular, of unhindered and immediate 
remittance of profits, income and other funds in foreign currency lawfully generated by foreign 
investment. 
 In case the guaranties of foreign investment protection provided by Ukraine's legislation are 
changed, foreign investment protection guaranties provided by Law of Ukraine No. 93/96 of 
19 March 1996 "On the Regime of Foreign Investment ", shall apply at the foreign investor's demand, 
within ten years of the effectiv e date of such legislation.  
 Laws impose on foreign investors in Ukraine the national regime of investment and of other 
economic activities, and conditions equal to those fo r domestic investors.  The state registration of 
foreign investment is done by the Government of the Autonomous Republic of Crimea, Oblast state 
administrations, Kiev City and Sevastopol City stat e administrations within three working days after it 
is made in accordance with the procedure.  Unregi stered foreign investment shall not grant privileges 
or guaranties provided by this Law. 
 In order to protect foreign investment, Ukraine signed on 3 April 1998 the Convention on the 
procedure for resolution of disputes between states and foreign persons.  The Verkhovna Rada of 
Ukraine ratified the Convention on 16 March 2000. 
State registration of foreign investment  
 Ukraine's Cabinet of Ministers' Resolution No. 928 of 7 August 1996 has approved "the 
Regulation on the procedure for the state registration of foreign investment". In order to obtain state  WT/ACC/UKR/110/Add.2 
 Page 131 
 
 
 registration, the foreign investor or the person duly authorized by him (hereinafter – the Applicant) 
shall submit to the state registration bodies documents as follows: 
- notice, in triplicate, of the foreign investment, bearing the confirmation by the state tax 
inspectorate at the place of investment, that the investment was made in fact; 
- documents confirming the form of foreign investment (company formation documents, 
agreements (contracts) on production cooperati on, joint production, other types of joint 
investment activities, concession agreements and so on); 
- documents confirming the value of the foreign investment; 
- confirmation that the regist ration fee (UAH340) is paid. 
 The state registration of foreign investment is done through assigning a registration number to 
the notice that the foreign investment has been made. 
 State registration of foreign investment may be refused only when the investment would 
contradict Ukraine's legislation, or when the stated documents do not meet the Regulation's 
requirements.  Refusal on the grounds of foreign inve stment's inexpedience (uselessness) not allowed. 
Refusal in the state registration sh all be in writing, shall state th e grounds, and may be appealed 
against in court. 
Permission to move tangible foreign investment across the border  
 Articles 18 and 24 of Law of Ukraine No. 93/96 of 19 March 1996 "On the Regime of 
Foreign Investment" provide that the foreign investor's contribution into the statutory fund of 
companies with foreign investment and also under ag reements on joint investment activities shall be 
exempted from the customs duty.  Property being im ported into the territory of Ukraine as foreign 
investment shall be allowed in on the basis of th e promissory note issued by the company to the 
amount of the duty with payment deferred for not more than 30 calendar days from the day on which 
the import customs declaration is processed.  In case the stated property is actually recorded on the 
company's balance-sheet within the period for which the payment is deferred (which is confirmed by 
the state tax inspectorate at the company's location) the promissory note shall be extinguished and the 
import duty shall not be levied.  
 If within three years of the moment that foreig n investment is recorded on the balance-sheet 
of the company with foreign investment, the property imported into Ukraine as the foreign investor's 
contribution to the company's statutory fund, is sold , including in connection with termination of this 
company's activities (except for exportation of fore ign investment abroad) the company with foreign 
investment shall pay the import duty calculated on the basis of the property's customs value converted 
into Ukraine's currency at the official exchange rate set by the National Bank of Ukraine on the day of 
the sale of the property. 
Other forms of foreign investment  
 Law of Ukraine No. 997-XIV of 16 July 1999 "On Concessions" gives domestic and foreign 
investors significant opportunities to take and use state and municipal properties on a concession basis 
for a period of up to 50 years. 
 Law of Ukraine No. 1286-XIV of 14 December 1999 "On Concessions for Construction and 
Operation of Motorways" has create d conditions for the attraction of investment in the field of 
constructing motorways and motorway infrastructure facilities.  The issuance of concessions for the 
construction of motorways, first of all along in ternational transport corr idors, and of E Class 
motorways. WT/ACC/UKR/110/Add.2 
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  Ukraine's Cabinet of Ministers' Resolutions have approved: 
- the procedure for determination of objects of concession and for conducting a concession 
tender (Ukraine's Cabinet of Ministers' Resolution No. 1521 of 4 October 2000); 
- the procedure for the setting of the fee for use of roads constructed on a concession basis 
(Ukraine's Cabinet of Ministers' Resolution No. 1299 of 22 August 2000); 
- the granting of privileges, subsidies and compensations to investors (Ukraine's Cabinet of 
Ministers' Resolution No. 1065 of 6 July 2000); and 
- the standard concession contract for the construction and operation of a motorway 
(Ukraine's Cabinet of Ministers' Resolution No. 1519 of 4 October 2000). 
 Production sharing agreements to be signe d in accordance with Law of Ukraine 
No. 1039-XIV of 14 September 1999 "On Production -Sharing Agreements", are another opportunity 
for foreign investment.  The Law is designed to cr eate favorable conditions for investment into the 
search, survey and extraction of mineral resources wi thin the territory of Ukraine, its continental shelf 
and exclusive (sea) economic zone. 
 Article 25 of the Law sets the procedure for paying taxes, duties and insurance premiums 
during the performance of the production sharing agreement.  In particular, within the effective period 
of the production sharing agreement an d within limits of the activity related to the performance of this 
agreement, state and local taxes and duties (mandatory payments) provided by the legislation (except 
for the value-added tax; company pr ofit tax; duty on the geological & survey works done at the state 
budget's cost; contributions to the mandatory state social insurance of Ukrainian employees and 
foreign citizens hired to work in Ukraine; contribu tions to the mandatory state pension insurance of 
Ukrainian employees and foreign citizens hired to work in Ukraine; payments for use of mineral 
resources) are not levied on the investor but are replaced with the division of products between the 
state and the investor in accordance with such an agreement. 
 The company profit tax is paid by the investor at rates set by the law but with the 
modifications as follows: 
- tax on profits generated during the performa nce of the production sharing agreement may 
be paid in monetary form or, provided it is stipulated by the agreement, in kind; 
- the basis for taxation of profits generated during the performance of the production 
sharing agreement is the investor's profit calc ulated on the basis of profit on products 
which are to be owned by the investor in accordance with the agreement; and 
- tax on repatriation of the foreign investor's incomes generated during the performance of 
the production sharing agreemen t, shall not be withheld. 
 The sale, in the customs territory of Ukraine,  of products acquired by the investor as his 
property as a result of their division, shall be subjected to the value-added tax under the general 
procedure set by the legislation ef fective on the day of the conclusion of the agreement.  The value-
added tax payable by the investor in case of the sale of the products in the customs territory of 
Ukraine, may be paid, if it is provided by the production sharing agreement, in kind, with products to 
be owned by the investor, in volumes equivalent to the sum of the tax. 
 Customs payments or the value-added tax shall not be levied on the goods (works, services) 
and other valuables being imported into the cust oms territory of Ukraine and designed for the 
performance of the production sharing agreement. 
 Customs payments, excise duty, or other taxes or mandatory payments shall not be levied, and 
the value-added tax shall be levied at zero rate, on products owned by the investor under such an 
agreement and being exported from the customs territory of Ukraine.  WT/ACC/UKR/110/Add.2 
 Page 133 
 
 
 ANNEX 6 
(with reference to Items 23 and 26) 
Activity Licenses and Licenses to Engage in the  
Import and Export of Certain Products  
 Ukraine has both the system of activities licensing and the system of licensing import and 
export operations. 
 The system of activities licensing shall confirm the right of a business agent to carry out 
activities indicated in its license.  For example, the following activities shall be subject to licensing: 
- exploration of minerals; 
- production of explosives and explosive materials (according to the List established by the 
Cabinet of Ministers of Ukraine); 
- production of specifically da ngerous chemical substances; 
- extraction and production of precious metals and stones, precious stones of organic 
formation and semiprecious stones; production of articles thereof; 
- production of medicines, and wholesale and retail trade in medicines; 
- production of veterinary medicines and prep arations, and wholesale and retail trade in 
veterinary medicines and preparations; 
- production of pesticides and agro-chemicals, and wholesale and retail trade in such 
pesticides and agro-chemicals; 
- designing and production of special technical devices for recording of information from 
communication channels, and other devices of a se cret receipt of information, and trade in 
special technical devices for recording of in formation from communication channels and 
other devices of a secret receipt of information; 
- designing, production, implementation, mainte nance and research of effectiveness of the 
systems and devices for technical protection of information, and rendering of services in 
the field of technical protection of information; 
- development, production, storage, transportation, purchase, conveyance, importation, 
exportation, sale and destruction of narcotic s, psychotropic substances and precursors; 
- production of securities forms and the registered documents forms; 
- medical practice; 
- veterinary practice; 
- services on transportation of passengers and cargo by aircraft; 
- services on transportation of passengers and cargo by river and sea transport; 
- services on transportation of passengers and cargo by motor transport; 
- services on transportation of passengers and cargo by railway transport; 
- purchase, processing and metallurgical proce ssing of non-ferrous and ferrous metals 
scrap; and 
- operations on import and export of spirits , alcoholic beverages and tobacco goods, and 
others. 
 In order to obtain the said licenses, an agen t of entrepreneurial activity shall apply to the 
licensing authority with an application of the establis hed form with the request to issue a license.  The 
said application must contain the following information: 
- name; 
- location; 
- banking details and identification code – for a legal entity; WT/ACC/UKR/110/Add.2 
Page 134  
 
 - surname, name, patronymic and passport details (series, number, issuing authority, date of 
issuance and residence), and identification number of a physical person who is the payer 
of taxes and other mandatory  payments – for  a physical person; 
- type of business activity for which an applicant intends to obtain a license; and 
- copy of the certificate of state registration of  the agent of entrepreneurial activity or copy 
of the certificate on its inclusion into the Unified State Register of Enterprises and 
Organizations of Ukraine certified by a not ary or by the authority which issued the 
original document. 
 Upon submission of the especially authorized body on licensing issues, the Cabinet of 
Ministers of Ukraine shall establish the validity te rm of a license to carry out the certain type of 
business activity.  The said validity te rm shall not be less than three years. 
 The Ministry of Economy and European Integration of Ukraine or its authorized regional 
authority shall establish the regime of individual licenses for export and import operations.  A license 
for effectuation of export and import operations is the basis for passing of goods subject to licensing 
regime through the customs border. 
 Concerning export and import of optical media equipment and discs, such operations are 
among activities subject to licensing.  The Cabinet of  Ministers of Ukraine (its Resolution "On the 
Approval of the List of Licensing Authorities," No. 1698, dated 14 November 2000) designated the 
Ministry of Economy and European Integration of Ukraine as the aut hority which effectuates 
licensing the activities of exporting and impo rting optical media equipment and discs. 
 The Order of the Ministry of Economy and on the Issues of European Integration of Ukraine, 
No. 244, dated 8 August 2002, registered with the Ministry of Justice of Ukraine, Order 
No. 704/6992, dated 23 August 2002, approved the procedure for issuance of a license for the above 
activities. 
 In order to obtain the said license, it is necessa ry to submit an application of the established 
form. The said application must contain the following information: 
- name of the legal entity with all its subs idiaries and branches, and its location; 
- surname, name, patronymic and passport details (series, number, issuing authority, date of 
issuance and residence) – for a physical person; 
- contact telephone number; 
- organizational and legal form; 
- identification code for a legal entity (iden tification number for a physical person); 
- banking details; 
- type of activity (export or import, optical media equipment or discs); 
- location of effectuation of the activity; and 
- obligations concerning the fulfillment of licensing terms and conditions. 
 At the same time, the following documentati on must be attached to the application form: 
- copy of the certificate on state registration of the agent of entrepreneurial activity or copy 
of the certificate on its inclusion into the Unified State Register of Enterprises and 
Organizations of Ukraine certified by a not ary or by the authority which issued the 
original document; 
- list of the management of an agent of entrep reneurial activity (its head, deputy heads and 
chief accountant), including their surnames, names and patronymics, positions and office 
telephone numbers signed by the head and duly stamped, as well as the reference 
concerning owners, signed by the head of a company and duly stamped; 
- duly certified copies of the founding documents (for a legal entity);  WT/ACC/UKR/110/Add.2 
 Page 135 
 
 
 - duly certified copies of the documents which confirm ownership rights or lease of storage 
facilities; 
- duly certified copies of the documents wh ich confirm the information on the premises 
where wholesale and/or retail trade in optical media discs (for a license to import discs) 
shall take place; 
- information on availability of optical media disc remainders as of 21 April 2002 (for 
export and import of optical media discs)  – in case of such availability; and 
- list of main components for specialized equipment for production of optical media 
systems, export or import of which are subjec t to licensing pursuant to laws (for licenses 
on export and import of equipment). 
 A license for activities of exporting and importin g of optical media discs shall give the right 
to carry out export and import of discs only upon availability of the special identification codes (CID-
codes) on such discs.  An agent of entrepreneurial activity shall be obliged to export and import only 
those discs produced with the observanc e of intellectual property rights.  At the same time, an agent of 
entrepreneurial activity, which obtained a license, sh all be obliged to notify the Ministry of Economy 
and European Integration of Ukraine on each allotm ent of optical media discs and/or submit the list of 
equipment for production of optical media discs exported and/or imported.  Such notification shall be 
effectuated by a letter which shall also contain th e list of copyright and related rights objects (if 
applicable), number of cargo customs declaration a nd copy of cargo customs declaration for the given 
allotment, duly certified.  The said letter must  be submitted within 15 days from the date of 
effectuation of export/import operation. 
 The following shall be the grounds for refusal to issue a license: 
- false information submitted by an applicant; and 
- discrepancy between the submitted docume nts and Licensing Terms and Conditions 
established for the given business activity. 
 In case of refusal to issue a license on the basis of discovered false information in the 
submitted documents, the new applica tion shall be accepted not earlie r that three months from the 
date of making decision to refuse a license. 
 Licenses shall be issued for three years. A fee in the amount of 340 Hryvnias shall be 
charged.  This corresponds to expenses  for processing of the said license. 
 Concerning import of precious metals and precious stones into Ukraine,  such operations are 
not subject to licensing. 
 The activity of exporting the following precious metals and precious stones from Ukraine 
shall be subject to licensing: 
- colloidal precious metals; inorganic or organic compounds of precious metals, whether or 
not chemically defined; amalgams of precious metals (code 2843); 
- diamonds, whether or not worked, but not mounted or set (code 7102); 
- precious stones (other than diamonds) and semi-precious stones, whether or not worked 
or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) 
and semi-precious stones, temporarily strung for convenience of transport (code 7103); 
- silver (including silver plated with gold or platinum), unwrought or in semi manufactured 
forms, or in powder form (excluding banking metals (code 7106); 
- gold (including gold plated with platinum), unwrought or in semi manufactured forms, or 
in powder form (excluding banking metals (code 7108); 
- platinum, unwrought or in semi manufacture d forms, or in powder form (excluding 
banking metals) (code 7110); and WT/ACC/UKR/110/Add.2 
Page 136  
 
 - waste and scrap of precious metal or of me tal clad with precious metal (code 7112). 
 The term of a license for carrying out the above business activity shall be three years.  Fee in 
the amount of 340 Hryvnias shall be charged for the said license. 
 Please see the answer to Item 47 concerning the procedure for licensing. 
 Concerning the regime of import of narcotics, it is governed by the Law of Ukraine "On 
Turnover of Narcotics, Psychotropic Substances, Their Analogs and Precursors," No. 60/95-VR, dated 15 February 1995, taking into account international obligations of Ukraine.  The said Law provides 
that import or export of narcotics shall be carried out by the authorized body of the Cabinet of 
Ministers of Ukraine according to a certificate (a separate permit) issued by the Committee on Control 
Over Narcotics attached to the Ministry of Health Protection of Ukraine.  Issuance of the certificate 
shall be effectuated in agreement with the Security Service of Ukraine (please see the answer to Item 
46).  The Resolution of the Cabinet of Ministers of Ukraine "On the Approval of the Procedure for 
Issuance of Certificates to Import into Ukraine an d to Export from Ukraine of Narcotics, Psychotropic 
Substances and Precursors," dated 3 February 1997, shall determine the procedure for issuance of the 
certificate and its sample. 
 In order to obtain the certificate to export/i mport narcotics, psychotropic substances and 
precursors, a company shall submit the follo wing documents to the said Committee: 
- application on a company's lette rhead addressed to the Head of the Committee.  The said 
application must contain the following information: 
- purpose of importation; 
- complete names, exact addresses and telephone (telexes) numbers of the importer 
(consignee) and exporter; 
- international nonproprietary name of the imported produce, if such name is available, 
and (or) the first name under which the said produce was issued, and (or) the name 
under which it is manufactured in importing or exporting countries; 
- amount of narcotics, psychotropic substan ces and precursors subject to importation; 
- medical form of a narcotic, psychotropic substance and precursor; 
- name and amount of narcotics, psychotropic substances and precursors which are 
imported under a contract and included to the List of narcotics, psychotropic 
substances, their analogs and precursors that are subject to the special control 
pursuant to applicable laws of Ukraine (her einafter "those included to the list of 
controlled substances"); 
- name of the producer; 
- number of the contract for supply; 
- price (sum) of the contract for supply; 
- name and number of tare items – for na rcotics, psychotropic substances and 
precursors in the form of substance used for production of medicines; 
- type of transport for supply; 
- delivery term for supply; and 
- name of the crossing point at state border of Ukraine through which importation shall 
be made. 
- invoice, cargo declaration, cargo, customs and transportation documents which contain 
the information on the amount of narcotics, psychotropic substances and precursors; 
- a company's Charter certified by a notary; 
- a copy of the contract, according to which importation of narcotics, psychotropic 
substances and precursors into Ukraine is effectuated, certified by a notary;  WT/ACC/UKR/110/Add.2 
 Page 137 
 
 
 - certificate of Medicines Registration Bureau of the Ministry of Health Protection of 
Ukraine on registration of medicines that are imported into Ukraine; 
- quality certificate of a narcotic or psycho tropic substance with indication of its 
serviceable life (quality passport of the producer is attached as to precursors); 
- obligations of the company on use of narcotics, psychotropic substances and precursors 
only for the declared purposes (import); and 
- a license's copy for carrying out the given activ ity in the field of turnover of narcotics, 
psychotropic substances and prec ursors, certified by a notary. 
 The term of a license for carrying out the above business activity shall be three years.  Fee in 
the amount of 340 Hryvnias shall be charged for the said license issuance. 
 Production of medicines, wholesal e and retail trade in medicines  is an activity that is subject 
to licensing according to the Law of Ukra ine "On Licensing Certain Business Activities," 
No. 1775-III, dated 1 June 2000.  The founding documents of an agent of business activity must 
indicate activities that are subject to licensing. 
 Production of medicines, wholes ale and retail trade in medicines shall be effectuated on the 
basis of a license for the given activity. 
 Documents for receipt of licenses on carrying out the given activities shall be submitted to the 
State Department for Control over Quality, Safety  and Production of Medicines and Articles of 
Medical Purpose. 
 In order to obtain a license, a business agen t shall submit an applica tion of the established 
form to the State Department for Control over Quality, Safety and Production of Medicines and 
Articles of Medical Purpose.  The said applic ation must contain the following information: 
- name of the legal entity with all its subs idiaries and branches, and its location; 
- surname, name, patronymic and passport details (series, number, issuing authority, date of 
issuance and residence) – for a physical person; 
- identification code for a legal entity (iden tification number for a physical person); 
- type of activity; 
- location of effectuation of the activity; and 
- obligations concerning the fulfillment of licensing terms and conditions. 
 At the same time, a copy of the certificate of state registration of the agent of entrepreneurial 
activity or copy of the certificate of its inclusion into the Unified State Register of Enterprises and 
Organizations of Ukraine certified by a notary or by  the authority which issued the original must be 
attached to the application form. 
 The following shall be the grounds for refusal of a license: 
- false information submitted by an applicant; and 
- discrepancy between the submitted docume nts and Licensing Terms and Conditions 
established for the given business activity. 
 In case of refusal of a license on the basis of discovered false information in the submitted 
documents, a new application shall be accepted not earlier that three months from the date of making 
decision on refusal in a license issuance. 
 An agent of business activity, while carryi ng out activities on production of medicines, 
wholesale and retail trade in such medicines, must ensure observance of consumer rights and WT/ACC/UKR/110/Add.2 
Page 138  
 
 effectuate its activities in accordance with the La w of Ukraine "On Enterpri ses in Ukraine" and "On 
Ensuring of Sanitary and Epidemio logical Well-being of Population." 
 Business agents may carry out production of medicines, wholesale and retail trade in 
medicines on the basis of a license on the given activity, if they meet qualifying, organizational and 
other special requirements as establis hed by licensing terms and conditions. 
 Medicines may be produced after their registration.  Only medicines registered in Ukraine 
shall be allowed in wholesale and retail trade. These medicines must also have a quality certificate 
issued by the producer.  Trade in medicines shall be carried out only through chemist's shops and 
pharmaceutical centers (warehouses) which must pass state accreditation within a year from the date 
of a license issuance. 
 Production of medicines shall be carried out fo llowing technical and technological regulations 
for production of medicines, and analytical nor mative documentation (pharmacopoeia article and 
technical terms and conditions) worked out in ac cordance with normative documents and standards 
applied in medical and microbiological industry. 
 Wholesale trade in medicines shall be effectuated only through pharmaceutical centers 
(warehouses).  It is mandatory for a pharmaceu tical center (warehouse) to have a valid State 
Pharmacopoeia, normative and technical and norma tive and legal documents, and special reference 
literature on the issues of dose, c ontrol over quality, storage, and pr ocedure for distribution (shipment) 
of medicines. 
 Retail trade in medicines shall be effectuated on ly through chemist's shops and their structural 
units (pharmaceutical points and pharmaceutical st ands).  Chemist's shop fronts or their separate 
structural unit fronts should have the appropriate signboard, indicating the name of business agent and 
its owner or the owner's authorized body. 
 Individuals who are directly engaged in production, wholesale and retail trade must have the 
relevant education and meet the unified qualifying requirements.  Such individuals must posses the 
following documents: 
- diploma of state standard on pharmaceutical education; and 
- certificate on awarding (acknowledgement) of pharmacist rank of general type (for 
specialists graduated from academ ies (universities) after 1992).  
 Specialists who passed special training in educat ional institutions of foreign countries shall be 
allowed to carry out professional ac tivities after examination of their qualification.  Specialists who do 
not work within three years on a specialty indicated in their diplomas and certificates shall be allowed 
to carry out activities on production of medicines, wholesale and retail trade in medicine only after 
passing through retraining. 
 The term of a license for carrying out the above business activity shall be three years. 
 The Law of Ukraine "On State Regulation of the Production and Trade in Ethyl, Cognac and 
Fruit Spirits, Alcoholic Beverages and Tobacco G oods (with changes and amendments)," No. 493, 
dated 19 December 1995, and the Resolution of the Cabinet of Ministers of Ukraine "On Provisional Procedure for Issuance of Licenses to Import and Export Ethyl, Cognac and Fruit Spirits, Alcoholic 
Beverages and Tobacco Goods," No. 493, dated 13 May 1996, shall govern licensing to import and 
export spirits, alcoholic beverages and tobacco goods. 
 Licenses to import and export ethyl and fruit spirits, distilled grape ethyl spirits and distilled 
fruit ethyl spirits shall be issued only to the st ate-owned enterprises and organizations specifically  WT/ACC/UKR/110/Add.2 
 Page 139 
 
 
 authorized for such purposes by the Cabinet of Ministers of Ukraine.  Licenses to import and export 
cognac spirits shall be issued only to the specialized cognac enterprises.  The Cabinet of Ministers of 
Ukraine shall approve the list of the said specialized enterprises. 
 The Ministry of Economy and European Integration of Ukraine upon consent of State 
Department on the Issues of Excise Duty Admi nistration and Control over Production and turnover 
Excise Goods of the State Tax Administration of Uk raine shall issue the said licenses separately for 
importing and exporting. 
 In case the Cabinet of Ministers of Ukraine sh all entrust the enterprises which produce ethyl, 
cognac and fruit spirits, distilled grape ethyl spirit s and distilled fruit ethyl spirits with powers to 
export such spirits or sell such spirits through wholesale trade to Ukrainian consumers, the said 
enterprises shall be exempted from a fee on the licen se to export such spirits within the amounts of 
their own production. 
 In order to obtain a license, the following documents must be submitted: 
- an application form to obtain a license to import and export ethyl, cognac and fruit spirits, 
distilled grape ethyl spirits, distilled fruit et hyl spirits, alcoholic beverages and tobacco 
goods; 
- copy of the certificate on state registration of the agent of entrepreneurial activity, 
certified by a notary or by the authority which issued the original document; and 
- copy of the document which confirms the sp ecial authorities granted by the Cabinet of 
Ministers of Ukraine to the state-owned enterprise or organization to carry out import and 
export of ethyl, cognac and fruit spirits, dis tilled grape ethyl spirits and distilled fruit ethyl 
spirits, certified by the head's signature and stamped with a company's seal (in case of 
submission of the documents for receipt of a license to carry out the given operations). 
 Processing and issuance of a license shall be effectuated on the basis of a copy of the payment 
order (with the bank's mark) submitte d by an applicant which confirms transfer of the annual fee for a 
license to the State budget of Ukraine, as well as on  the basis of a reference of the relevant financial 
authority regarding actual receipt of the funds by the State budget of Ukraine.  Issuance of a license 
shall be effectuated upon availability of the duly ma de power of attorney for receipt of such license 
and a document which identifies the person. 
 Decision to refuse a license will be made when: 
- discrepancy between the submitted documents  and applicable laws of Ukraine; 
- applicant's violation of Ukrainian laws in  the field of foreign economic activity; and 
- non-receipt of consent on issuance of a license from State Department on the Issues of 
Excise Duty Administration and Control over Production and turnover Excise Goods of 
the State Tax Administration of Ukraine. 
 In case of refusal to issue a license, the period for review of the documents shall suspend until 
the applicant submits the reviewed and improved documents or the appropriate substantiation. 
 Licenses shall be issued for five years.  A license fee shall be charged annually.  The amount 
of a license fee shall be 170,000 Hryvnias.  In case of late payment of the regular fee, a license shall 
be suspended. 
 Business activities related to production of pesticides and agro-chemicals, wholesale and 
retail trade in such products is activities subject to licensing.  The Law of Ukraine "On Pesticides and 
Agro-Chemicals," No. 86-95/VR, dated 2 March 1995, and the joint Order of State Committee of Ukraine for the Issues of Regulator Policy and Entrepreneurship and Ministry of the Industrial Policy WT/ACC/UKR/110/Add.2 
Page 140  
 
 of Ukraine "On the Approval of Licensing Terms and Conditions for Carrying out Business Activities 
on Production of Pesticides and Agro-Chemicals, Wh olesale and Retail Trade in Pesticides and Agro-
Chemicals," No. 40/70, dated 22 February 2001, sha ll govern licensing terms and conditions of the 
said activities. 
 Pesticides and agro-chemicals of domestic prod uction, as well as foreign ones, imported for 
use into Ukraine must meet the following requirements: 
- high biological effectiveness as to designated purposes; 
- safety for human health and the environment of regulations for their use are observed; and 
- conformity to state standards, sanitary norms and other normative documents. 
 It is prohibited to import into the customs terr itory of Ukraine, produce, sell, use and advertise 
pesticides and agro-chemicals prior to their state registration.  State Interd epartmental Commission of 
Ukraine on the Issues of Testing and Registration of Plant Protection Means and Growth Regulators 
shall issue a permit to import and use unregistered pesticides and agro-chemicals, if such pesticides 
and agro-chemicals meet the following requirements: 
- they are considered as customs cargo and are under customs control; 
- they are used for scientif ic and research purposes; 
- they are imported during rise of a threat of mass seats for reproduction of dangerous 
organisms; 
- they are designated for combatting plant microorganisms within the closed areas or 
pipeline systems on enterprises and institutions  of mining, nuclear and medical industries; 
and 
- they are imported together w ith seeds which were treated with protective and stimulant 
substances that pursuant to their chemic al content and action methods meet analogs 
registered in Ukraine. 
 In order to import and use pesticides and agro-chemicals, unregistered in Ukraine, for the 
above purposes, it is mandatory to present documentary confirmation of  their use in the country where 
they are produced. 
 Entrepreneurial activity in the field of producti on, wholesale and retail trade in pesticides and 
agro-chemicals shall be carried out on the basis of  a license.  The Ministry of Industry of Ukraine 
shall issue a license for production, wholesale and retail trade in pesticides and agro-chemicals. 
 In order to obtain a license, a business agen t shall submit an applica tion of the established 
form.  The said application must contain the following information: 
- name of the legal entity with all its subs idiaries and branches, and its location; 
- surname, name, patronymic and passport details (series, number, issuing authority, date of 
issuance and residence) – for a physical person; 
- identification code for a legal entity (iden tification number for a physical person); 
- type of activity; 
- location of effectuation of the activity; and 
- obligations concerning the fulfillment of licensing terms and conditions. 
 At the same time, a copy of the certificate of state registration of the agent of entrepreneurial 
activity or copy of the certificate of its inclusion into the Unified State Register of Enterprises and 
Organizations of Ukraine certified by a notary or by  the authority which issued the original must be 
attached to the application form.  WT/ACC/UKR/110/Add.2 
 Page 141 
 
 
  The following shall be the grounds for refusal to issue a license: 
- false information submitted by an applicant; and 
- discrepancy between the submitted docume nts and Licensing Terms and Conditions 
established for the given business activity. 
 In case of refusal of a license on the basis of discovered false information in the submitted 
documents, the new application shall be accepted not  earlier that three months from the date of 
making the decision on refusal of the license. 
 In order to carry out business activities on production of pesticides and agro-chemicals, a 
business agent must ensure mandatory observance of the requirements of technological regulations 
and rules.  In order to produce pesticides and agro-chemicals, business agent must posses the 
following documentation: 
- normative documents of standardization (GOST [State Standards of the former Soviet 
Union, which still apply in Ukraine], TU [T echnical Terms and Conditions], DSTU [State 
Standards of Ukraine]) for production of goods of the given quality; 
- technological regulations; 
- positive conclusions of sanitary and epidemiological service; 
- permit to commence work; 
- permit to produce testing groups of domestic pesticides and agro-chemicals; and 
- rules, drafted and approved by business agent on the basis of the approved technological 
regulations. 
 In order to carry out business activities on whol esale and retail trade in pesticides and agro-
chemicals, a business agent must posses the following: 
- storing facilities for storage of pesticides a nd agro-chemicals.  Such storing facilities must 
meet sanitary and hygienic requirements and sa fety engineering rules, as well as to have 
sanitary passports; 
- quality certificates for pesticides and agro-chemicals; 
- regulations to carry out trade operations; 
- rules on labor protection, production sanitation and fire safety; 
- duties regulation; and 
- positive conclusions of sanitary  and epidemiological service. 
 A business agent must sell pesticides and agro -chemicals to the population in a small-packed 
form with mandatory instructions printed in Ukrainian concerning the safe use of such pesticides and agro-chemicals. 
 Employees of business agents whose activitie s relate to wholesal e and retail trade in 
pesticides and agro-chemicals must have special e ducation and training, undergo retraining once per 
three years and medical examination, as well as ha ve a permit to work with the said pesticides and 
agro-chemicals, certificate and medical book. 
 A term of a license for carrying out the above business activity shall be three years.  A license 
fee shall be charged in the amount of 340 Hryvnias 
 Pursuant to Article 9 of the law of Ukrain e "On Medicines," the Cabinet of Ministers of 
Ukraine shall determine the procedure for state regi stration of medicines.   The Resolution of the 
Cabinet of Ministers of Ukraine "On the Approv al of the Procedure for State Registration 
(Re-registration) of Medicines and Fees for Stat e Registration (Re-registra tion) of a Medicine," 
No. 1422, dated September 2000, as changed and amended by the Resolution of the Cabinet of WT/ACC/UKR/110/Add.2 
Page 142  
 
 Ministers of Ukraine, No. 678, dated 21 June 2001, established the following fees for state registration 
(re-registration) of a medicine. 
 The applicant shall pay a fee for state registration (re-registration) of a medicine to the State 
budget of Ukraine. 
 A fee for state registration (re-registration) of a medicine shall be paid in Hryvnias or in a 
foreign currency.  Conversion into Hryvnias shall be  effectuated pursuant to the official exchange rate 
of the National Bank of Ukraine as of the date of state registration (re-registration) of a medicine. 
 A fee for state registration (re-registration) of a medicine shall be charged in Hryvnias in the 
following amounts: 
- for state registration: 
- of a medicine (except for radioactive me dicines, diagnostic means and simple or 
complex ( halenic ) preparations of plant medical raw materials) – in the amount equal 
to 1,000 EURO for each medical form, 100 EURO for each next dose and 100 EURO 
for each next package of a medicine; and 
- of a radioactive medicine, diagnostic means and simple or complex ( halenic ) 
preparations of plant medical raw materials – in the amount equal to five hundred 
500 EURO for each medical form, 50 EURO for each next dose and 50 EURO for 
each next package of a medicine. 
- for re-registration: 
- of a medicine (except for radioactive medicines, diagnostic means and simple or 
complex ( halenic ) preparations of plant medical raw materials) – in the amount equal 
to 500 EURO for each medical form, 50 EURO for each next dose and 50 EURO for each next package of a medicine; and 
- of a radioactive medicine, diagnostic means and simple or complex ( halenic ) 
preparations of plant medical raw materials – in the amount equal to 250 EURO for 
each medical form, 25 EURO for each next dose and 25 EURO for each next package 
of a medicine. 
- for state registration (re-registration): 
- of a medicine supplied in bulk, as well as of medicine packed up in Ukraine from in 
bulk supply – in the amount equal to 25 EURO for each medical form and 25 EURO 
for each next package of a medicine; and 
- of substances (activ e and auxiliary matters) – in the amount equal to 25 EURO for 
each item.  WT/ACC/UKR/110/Add.2 
 Page 143 
 
 
 ANNEX 7 
(with reference to Item 41) 
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 da ted 29 November 2001 
No. 1584,  dated 29 March 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 established 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 ta king 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 Cabi net 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. 
 
Prime-Minister of Ukraine  V. YUSHCHENKO  
 
APPROVED BY  Resolution of the Cabinet of Ministers of Ukraine  
dated 12 October 2000 No. 1544 
 WT/ACC/UKR/110/Add.2 
Page 144  
 
 Regulation On Port Fees
 
(Pursuant to Order of the Ministry of Transportation, 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 term inal in order to take a load of oil) 
General Part  
1. Port fees (ship, canal, lighthouse, berth, anchor, 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 and 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 
companies, which are parties to the Bratislava Treaty, that call at ports on the Danube river, as well as river self-propelled 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 
training, training and practice vessels when performing voyages in accordance with the 
curricula of educational institutions with at least 50 cadets aboard, school vessels  E group 
scientific, research and high-speed hydrofoils that perform regular scheduled coasting 
passenger voyages (except for pleasure and cruise voyages) E group 
other vessels (vessels of a shipyard, emergency and rescue vessels, underwater 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: 
1. 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.  
2. Group C (tugboats and barges), E and F vessels that perform commercial ca rgo voyages shall belong to the 
A group. 
3. Group E and F vessels that perform commercial cargo and passenger voyages shall belong to the B group 
4. 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). 
5. 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 departure 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.   WT/ACC/UKR/110/Add.2 
 Page 145 
 
 
 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 di mensions (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 deck or have two or more decks, except for 
twin-deck vessels, the height of a board used to calcula te 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 towing warehouses, caravans and other floating 
structures for purposes of charging all types of fees, 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-c arriers, lighter-aboard 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 determined 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 paragraph six pursuant to Resolution of the Cabinet of Ministers 
of Ukraine, dated 29 March 2002, No. 391. 
4. Lighter-aboard ships that perform cargo operations 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 overs eas 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). 
 WT/ACC/UKR/110/Add.2 
Page 146  
 
 In the port of Odessa a 10 per cent discount sh all 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 seve ral port fees, there shall apply the discount on the 
highest basic rate only.  
9. Nationality of, and respectively, the status granted 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 the 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 sh all be increased by an amount of the value-
added tax and in other cases an amount of th e value-added tax due to the budget shall be 
calculated on the basis of an amount of fees charged and paid to the port without such an 
increase.  
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$) 
For foreign-going vessels Port regular rate reduced rate For coasting 
vessels 
Bilgorod-Dnistrovskiy  0.157  0.076  0.0008  
Berdyansk  0.308  0.069  0.0008  
Dnipro-Buzskiy 0.277  0.085  0.0042  
Eupatoria  0.184  0.063  0.0046  
Izmail  0.194  0.065  0.0024  
Illichyvsk  0.297  0.095  0.0060  
Buchta Kamyshova  0.182  0.077  0.0038  
Kerch  0.277  0.089  0.0042  
Mariupol  0.254  0.087  0.0024  
Mizhvodne  0.184  0.063  0.0032  
Mykolayv  0.277  0.071  0.0054  
Odessa  0.313  0.094  0.0054  
Oktyabrskiy  0.277  0.085  0.0042  
Ochakiv  0.265  0.081  0.0051  
Reni  0.194  0.062  0.0020  
Sevastopol  0.182  0.077  0.0042  
Skadovsk  0.277  0.085  0.0054  
Ust-Dunaysk  0.100  0.086  0.0078  
Feodosia  0.187  0.065  0.0042  
Kherson  0.194  0.068  0.0028  
Chornomorsk  0.184  0.063  0.0032  
Yuzhniy  0.383  0.187  0.0144  
Yalta  0.331  0.097  0.0090  
Berth of CJSC "Mykolayvskiy Potasium Terminal" 0.277 0.071 0.0054  WT/ACC/UKR/110/Add.2 
 Page 147 
 
 
 For foreign-going vessels Port regular rate reduced rate For coasting 
vessels 
Other ports (berths)  0.182  0.062  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 Resolution  of the Cabinet of Ministers of Ukraine, dated 
29 November 2001, No. 1584. 
13. Group E and F vessels shall be exempt from the ship fee.  
14.  Vessels flying the State Flag of Ukraine an d vessels flying flags of countries with which 
Ukraine entered into international agreements on granting the most favorable or national 
regime to vessels shall be charged the ship fee at a reduced rate.  
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 specified 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.  
15.  In the event that A Group vessels consequently 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 discount off the basic rate in every port; 
- 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 f ee 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). WT/ACC/UKR/110/Add.2 
Page 148  
 
 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 + 0.01801
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 
operations and service vessels  0.14410 + 0.01611 0.01532 + 0.00173 
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 + 0.2271  0.0026 + 0.02261
Berth of the "Okean" Plant  0.2211  0.02211
Odessa  0.011  0.0010
Oktyabrskiy  0.027 + 0.2031  0.0026 + 0.02021
Ochakiv 0.027 + 0.0271  0.0027 + 0.00271
Sevastopol  0.032 0.0032
Skadovsk  0.032 0.0032
Ust-Dunaysk  0.068 0.0068
Kherson (maritime)  0.10 + 0.1361 0.010 + 0.01361
Yuzhniy  0.074 0.0074
For passage through Prorva canal  0.140 0.0140
Berth of CJSC "Mykolayvskiy Potasium 
Terminal" 0.027 + 0.2081 0.0026 + 0.02071
 
Notes:  
1. 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. 
2. For passage through the Buzsko-Dniprovsko-estuary 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 the 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). 
3. For vessels that, according to the tonnage certificate 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. 
                                                      
9 To be paid directly to the State Enterprise "Delta-Lotsman". 
10 To be paid to the sea commercial port "Kerch". 
11 To be paid to other Kerch-based enterprises that perform loading-unloading operations and service 
vessels.  WT/ACC/UKR/110/Add.2 
 Page 149 
 
 
 4. For vessels that pass through the access canal to the port of the "Azovstal" 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 fe e 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 calls 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 light house 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.  
Berthage  
23.  A berthage shall be collected from vessels that are moored at berth.  
24.  To Group A, B, and C vessels (tugboats), Gr oup D, E, and F vessels (sports vessels, private 
yachts, sailing vessels and fishing-boats that call 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 performed 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 that 
call at ports without loading operations (cubic meters per 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:  WT/ACC/UKR/110/Add.2 
Page 150  
 
 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 respect to another vessel, which is moored at the berth, 
or moored at berth foreside or aftside shall pay a 50 per cent of the berthage rate.  
27.  Group A and B vessels shall be charged the berthage 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 unoccupied berth or place for anchorage on the 
roadstead.  
Anchor Fee  
29.  Group A and B vessels shall be charged an anchor 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 the vessel was actually anchored:  
US$0.0027 on foreign-going vessels;  
US$0.00027 on coasting vessels.  
 
30.  Group C, D, and F vessels (sports vessels, private yachts, sailing vessels and fishing-boats 
that call at ports without loading operations) shall be charged an anchor fee for 30 days of 
anchorage on the internal roadstead 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 from 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 vessels, private yachts, sailing vessels and fishing-
boats that call at ports without loading operat ions) shall be exempt from the anchorage fee. 
Administrative Fee   WT/ACC/UKR/110/Add.2 
 Page 151 
 
 
 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 vessel'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 shall be exempt from the administrative fee. 
Group A, B, C, and D vessels that consequen tly 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 agreed 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 labor and at their expense of operations related to the acc eptance of wastes (delivery and cleaning of 
floating crafts, provision of containers and other receptacles for collection of garbage, 
reloading operations, hosing, unhosing, etc.);  
- mandatory discharge by a vessel of all available 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  fee per cubic meter of the vessel's tonnage or a 
self-propelled part of the compound floa ting structure at the following rates:  
(in US$)  
On foreign-going vessels On coasting vessels 
Port anchorage of up 
to 10 twenty-
four-hour 
periods anchorage from 
10 to 30 twenty-
four-hour 
periods anchorage of up 
to 10 twenty-
four-hour 
periods anchorage from 
10 to 30 twenty-
four-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  WT/ACC/UKR/110/Add.2 
Page 152  
 
 On foreign-going vessels On coasting vessels 
Port anchorage of up 
to 10 twenty-
four-hour 
periods anchorage from 
10 to 30 twenty-
four-hour 
periods anchorage of up 
to 10 twenty-
four-hour 
periods anchorage from 
10 to 30 twenty-
four-hour 
periods 
Yalta  0.022  0.040  0.0022  0.0040  
 
Notes:  
1. Group B, C, D, E and F shall be exempt from the sanitary fee. 
2. The sanitary fee shall not be charged at ports that do not have facilities to store all wastes. 
37.  Vessels that are equipped with environmen tally protective equipment for complete utilization 
of all types of vessel's wastes and pollutants , and have an internat ional certificate on 
prevention of sea pollution with oil, sewage, a nd certificate of prevention of pollution with 
(environmentally pure) garbage, shall be granted a 50 percent discount off the sanitary fee.  
38.  In the event that the sanitary fee is no t collected, payments for contamination shall be 
governed by the Ministry of Transportation. 
APPROVED BY  
Resolution of the Cabinet of Ministers of Ukraine 
Dated 12 October 2000, No. 1544   WT/ACC/UKR/110/Add.2 
 Page 153 
 
 
 The List of Resolutions of the Cabinet of Ministers of Ukraine that became ineffective  
1. Resolution of the Cabinet of Ministers of Ukrain e, dated 18 April 1996, No. 442 "On Approval of 
the Regulation on Port Fees" (ZP of Ukraine 1996, No. 10, p. 302). 
2. Resolution of the Cabinet of Ministers of Ukraine, dated 8 September 1997 No. 989 "On 
Introduction of Amendments to the Regulation on Port Fees approved by Resolution of the 
Cabinet of Ministers of Ukraine dated 18 April 1996, No. 442" (The Official Bulletin of Ukraine 
1997, issue 37, p. 14). 
3. Resolution of the Cabinet of Ministers of Ukraine, dated 8 December 1997 No. 1364 "On 
Amending the Regulation on Port Fees" (T he Official Bulletin of Ukraine 1997 р., issue 50, 
p. 90). 
4. Resolution of the Cabinet of Ministers of Ukrain e, dated 10 June 1998, No. 847 "On Introduction 
of Amendments to Resolutions of the Cabinet of Ministers of Ukraine on Issues of Port Fees" 
(The Official Bulletin of Ukraine 1998 р., No. 23, p. 846). 
5. Resolution of the Cabinet of Ministers of Ukraine, dated 24 March 1999, No. 445 "On 
Introduction of Amendments and Additions to the Regulation On Port Fees" (The Official 
Bulletin of Ukraine 1999 р., No. 12, p. 481). 
6. Resolution of the Cabinet of Ministers of Ukraine, dated 19 October 1999, No. 1929 "On 
Amending the Regulation on Port Fees" (The Offici al Bulletin of Ukraine 1999, No. 42, p. 2104). 
7. Resolution of the Cabinet of Ministers of Ukraine, dated 25 April 2000 No. 700 " On Introduction 
of Amendments and Additions to the Regulation On Port Fees" (The Offic ial Bulletin of Ukraine 
2000 р., No. 17, p. 716).  
 WT/ACC/UKR/110/Add.2 
Page 154 ANNEX 8 
 (with reference to Item 66) 
Excise Taxes  
 Rates of Excise Tax and Import Duties on Certain Categories of Vehicles, Ethyl Alcohol, Alcoholic  Beverages, Tobacco and Certa in Commodities 
(Products) 
 1. In accordance with the Law of Ukraine of 24 May 1996 No. 216/96- ВР On Rates of Excise Tax and Import Duties on Certain Categories of Vehicles, 
the following rates of  excise ta x have been fixed for vehicles: 
Rates of Excise Tax per Unit HS Commodity Code Description of Commodity according to HS Global For Domestic Manufacturers 
 Vehicles, with spark-ignition internal combustion 
reciprocating piston engine:  Domestic Manufacturer on condition of annual output o f 
1,000 automobiles or 1,000 motorcycles Until 1 January 2007 
87.0321 100 Of a cylinders capacity not exceeding 1,000 cm3, new Euro  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  Euro  0.4 per 1 cc 0 
87.0321 903 From 1 to 5 years Euro  0.6 per 1 cc 0 
87.0322 110 
87.0322 190 Of a cylinders capacity exceeding 1,000 cm3but not 
exceeding 1,500 cm3, new: motor caravans; other Euro  0.2 per 1 cc 0 
87.0322 90 Of a cylinders capacity exceeding 1,000 cm3 but not 
exceeding 1,500 cm3, used;   
87.0322 901 Up to 5 years inclusive  Euro  0.4 per 1 cc 0 
87.0322 903 Over 5 years Euro  0.6 per 1 cc 0 
87.0323 110 
87.0323 190 Of a cylinders capacity exceeding 1,500 cm3but not 
exceeding 2,200 cm3 , new: motor caravans; other  Euro  0.3 per 1 cc 0 
87.0323 110 
87.0323 190 Of a cylinders capacity exceeding 2,200 cm3but not 
exceeding 3,000 cm3, new: motor caravans; other   Euro  0.6 per 1 cc 0 
87.0323 90 Of a cylinders capacity exceeding 1,500 cm3but not 
exceeding  2,200 cm3, used;   
87.0323 901 Up to 5 years inclusive Euro  0.6 per 1 cc 0 
87.0323 903 Over 5 years Euro 0.9 per 1 cc 0 
87.0323 90 Of a cylinders capacity exceeding 2,200 cm3but not 
exceeding 3,000 cm3, used:   
87.0323 901 Up to 5 years inclusive Euro 1.2 per 1 cc 0 
87.0323 903 Over 5 years Euro 1.8 per 1 cc 0 
87.0324 100 Of a cylinders capacity exceeding 3,300 cm3, new Euro 1.0 per 1 cc 0  
  WT/ACC/UKR/110/Add.2
 Page 155Rates of Excise Tax per Unit HS Commodity Code Description of Commodity according to HS Global For Domestic Manufacturers 
87.0324 90 Of a cylinders capacity exceeding 3,000 cm3, used   
87.0324 901 Up to 5 years inclusive Euro 2.0 per 1 cc 0 
87.0324 903 Over 5 years Euro 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 exceeding 1,500 cm3, new Euro 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 Euro 0.4 per 1 cc 0 
87.0331 903 Over 5 years Euro 0.6 per 1 cc 0 
87.0332 110 
87.03 32 190 Of a cylinders capacity exceeding 1,500 cm3but not 
exceeding 2,500 cm3, new: motor caravans; other Euro 0.3 per 1 cc 0 
87.03 32 90 Of a cylinders capacity exceeding 1,500 cm3but not 
exceeding 2,500 cm3, used   
87.0332 901 Up to 5 years inclusive Euro 0.6 per 1 cc 0 
87.03 32 903 Over 5 years Euro 0.9 per 1 cc 0 
87.0333 110 
87.0333 190 Of a cylinders capacity exceeding 2,500 cm3, new: motor 
caravans; other Euro 0.8 per 1 cc 0 
87.0333 90 Of a cylinders capacity exceeding 2,500 cm3, used   
87.0333 901 Up to 5 years inclusive Euro 1.6 per 1 cc 0 
87.0333 903 Over 5 years Euro 2.4 per 1 cc 0 
87.0390 Other (with electric motors, other) Euro 100 per unit 0 
87.0310 Vehicles specially designed for traveling on snow; golf cars 
and similar vehicles Euro 0.6 per 1 cc 0 
87.1140 000 
87.1150 000 
87.1190 000 Motor-cycles (including mopeds) and cycles fitted with an 
auxiliary motor, with or without side-cars, with a cylinder 
capacity exceeding 500 cm3 but not exceeding 800 cm3; 
exceeding 800cm3; other  Euro 0.2 per 1 cc 0 
87.1610 990 Trailers and semi-trailers, for housing,  exceeding 3,500kg 100 per 1 cc 0 
  
 WT/ACC/UKR/110/Add.2 
Page 156  2. In accordance with the Law of Ukraine of 7 May 1996 No. 178/96- ВР On Rates of Excise Tax and Import Duties on Ethyl Alcohol and  Alcoholic 
Beverages as amended by the Law of Ukraine of 24 October 2002 No. 195- ІV On Introducing Amendments to Certain Laws of Ukraine On Taxation 
,Manufacture and Circulation of Excisable Goods, the following ex cise tax rates have been established for Ethyl Alcohol and  Al coholic Beverages:     
Rates of Excise Tax per Unit HS Commodity Code Description of Commodity 
according to HS Global For Domestic Manufacturers 
2204  
(except 2204 10,  
2204 30,  
2204 21 100,  2204 29 100) Wine of fresh grapes, including 
fortified wines  
 
 UAH 0.8 per litre 
 UAH 0.25 per litre 
(codes 2204 21 210 – 2204 21290, 2204 29 210 –
2204 29 290) from 1 January 2003 until 1 January 
2004 (applies to those manufactured from domestic raw materials)  
2204 10 Sparkling wine, champagne: UAH 1.6 per litre UAH 1.6 per litre 
 Sparkling wines containing in the 
name the word " Сhampagne"  UAH 1.6 per litre UAH 1.6 per litre 
2204 21 100 
2204 29 100 Aerated wines (excluding sub-item 
2204 10) UAH 1.6 per litre UAH 1.6 per litre 
2204 З0 Other wine must (including  wine 
materials for cognac and 
champagne)  
 0 UAH 1.0 per litre of wine materials when sold to 
intermediaries and population, produced at primary 
production facilities  
until  01.01.2004 
2205 Vermouth and other wine of fresh 
grapes flavoured with plants or 
aromatic substances  (with Article 2 
of this Law been considered)  UAH 2.6 per litre 
 UAH 1.0 per litre 
from 1 January 2003 until  1 January 2004  
(applies to those manufactured from domestic raw 
materials) 
2206  
2206 00 930, 2206 00 990 Other fermented beverages (for 
example, cider, perry, mead)  
  UAH 2.6 per litre 
 UAH 1.0 per litre 
from 1 January 2003 until 1 January 2004  
(applies to fruit wines manufactured from domestic raw materials)  
  WT/ACC/UKR/110/Add.2
 Page 157Rates of Excise Tax per Unit HS Commodity Code Description of Commodity 
according to HS Global For Domestic Manufacturers 
2207 Undenatured ethyl alcohol of an 
alcoholic strength by volume of less than 80% vol; spirits, liqueurs and 
other spirituous beverages  UAH 17.4 per litre of 100 percent alcohol  
 UAH 2.0 per litre of 100 percent 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 juices, fruit 
drinks, extracts intended for industrial processing; 
 -  for use by manufacturers of pectin, alcohol 
vinegar, medicines (including   blood components 
and preparations made on their basis), with the 
exception of medicinal drugs in the 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  UAH 17.4 per litre of 100 percent alcohol  
 UAH 2.0 per litre of 100 percent 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 juices, fruit 
drinks, extracts intended for industrial processing; 
 -  for use by manufacturers of pectin, alcohol 
vinegar, medicines (including blood components 
and preparations made on their basis), with the 
exception of medicinal drugs in the form o
f 
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 
2208 (except 2208 10 900 only cognac alcohol) Undenatured ethyl alcohol of an 
alcoholic strength by volume of less than 80% vol; spirits, liqueurs and 
other spirituous beverages, alcoholic 
semi-products used in the manufacture of beverages (with 
Article 6 of this Law taken into 
consideration)  UAH 17.4 per litre of 100 percent alcohol  
 UAH 17.4 per litre of 100% alcohol 
2208 10900  Only cognac alcohol (with Article 4 
of this Law taken into consideration)0 0 
  
 WT/ACC/UKR/110/Add.2 
Page 158  3. In accordance with the Law of Ukraine of 6 February 1996 No. 30/96- ВР "On Rates of Excise Tax and Import Duties on Tobacco" , the following 
excise tax rates have been established for tobacco products: 
Rates of Excise Tax per Unit HS Commodity Code Description of Commodity 
according to HS Global For Domestic Manufacturers 
2402 10 000 Cigars (cheroots), cigarillos 
(cigarettes), other  UAH 20 per 100 UAH 20 per 100 
2402 20 001 Cigarettes without filters from 
tobacco  UAH 20 per 1,000 UAH 5 per 1,000 
2402 20 002 Cigaretter with filter from tobacco UAH 10 per 1,000 UAH 10 per 1,000 
2403 10 000 Smoking tobacco (whether or not 
containing tobacco substitutes in any 
proportion) UAH 10 per kg UAH 10 per kg 
2403 99 100 Chewing tobacco 
Snuff UAH 10 per kg UAH 10 per kg 
2401 Unmanufactured tobacco 
Tobacco refuse 0 0 
2403  
(except 2403 
99 100,2403 10 000) Other manufactured tobacco and 
manufactured tobacco substitutes 0 0 
 
 4 . In  accordan ce with  the Law o f Ukraine o f 11 Ju ly 1 996  No. 31 3/96 - ВР "On Rates of Excise Tax and Import  Duties 'On Certain Commodities as 
amended by the Law of Ukraine of 24 October 2002 No. 195- ІV On Introducing Amendments to Certain Laws of Ukraine On Taxation ,Manufacture and 
Circulation of Excisable Goods by the Law of Ukraine of 24 December 2002 No. 347- ІV On Introducing Amendments to Certain Laws of Ukraine On Taxation 
of Excisable and Certain Other Commodities'", the following exci se tax rates have been established for the commodities (product s) listed below: 
Rates of Excise Tax per Unit HS Commodity Code Description of Commodity 
according to HS Global For Domestic Manufacturers 
2203 00 Malt beer  UAH 0.23 per litre UAH .23 per litre 
 Light  oils and preparations:   
2710 00 110 For undergoing a specific process Euro 12 per 1,000 kg Euro 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 Euro 12 per 1,000 kg Euro 12 per 1,000 kg 
 Spesial spirits:   
2710 00 210 White spirit Euro 12 per 1,000 kg Euro 12 per 1,000 kg 
2710 00 250 other Euro 20 per 1,000 kg Euro 20 per 1,000 kg 
 Motor spirit:    
  WT/ACC/UKR/110/Add.2
 Page 159Rates of Excise Tax per Unit HS Commodity Code Description of Commodity 
according to HS Global For Domestic Manufacturers 
2710 00 310      Aviation spirit Euro 20 per 1,000 kg Euro 20 per 1,000 kg 
2710 00 370      Jet fuel Euro 20 per 1,000 kg Euro 20 per 1,000 kg 
2710 00 390      Other light fractions  Euro 20 per 1,000 kg Euro 20 per 1,000 kg 
 Medium oils:   
2710 00 410      For undergoing a specific process Euro 20 per 1,000 kg Euro 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 Euro 12 per 1,000 kg Euro 12 per 1,000 kg 
 For other purposes:   
 Kerosene:   
2710 00 510 Jet fuel Euro 12 per 1,000 kg Euro 12 per 1,000 kg 
2710 00 590 
2710 00 550 Other Euro 20 per 1,000 kg Euro 20 per 1,000 kg 
2710 00 330 
2710 00 350 Only motor spirit containing not less 
than 5% of high-octane oxigen-containing agents  А-76Ек, А-80Ек. 
А-92Ек, АІ-93Ек, А-95Ек, А-98Ек 0 Euro 30 per 1,000 kg 
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 Euro 60 per 1,000 kg Euro 60 per 1,000 kg 
2710 00 610 
2710 00 650 
2710 00 690 Heavy oils (diesel fuel) Euro 30 per 1,000 kg Euro 20 per 1,000 kg 
7113 
7114 Jewelry Excluded Excluded 
 WT/ACC/UKR/110/Add.2 
Page 160  
 
 ANNEX 9 
(with reference to Item 96) 
 
List of The Ship Building Enterprises Receiving the Benefit of The State Support Measures for the 
Ship Building Industry  
Name of the enterprise 
Autonomous Republic of Crimea 
Open Stock Holding Partnership (OSHP) "Shipbuilding Plant "Zaliv", Kerch City 
Branch Enterprise OSHP "Shipbuilding Plant "Zaliv" – "Sudnoservice", Kerch City 
OSHP "Feodosiya Shipbuilding Company "More" 
State Enterprise "Skloplastyc", Feodosiya City 
State Enterprise "Designers and Technological Bureau "Sudnocomposit", Feodosiya City 
State Enterprise "Prymorets", Feodosiya City 
OSHP "Fiolent Plant", Simferopil City 
Mykolayiv Oblast 
State Stock Holding Company "Chornomorsky Ship Building Plant", Mykolayiv City 
OSHP "Shipbuilding Docks (shipyard) "Meridian", Mykolayiv City 
OSHP "Chornomorsky Machine Building Plant", Mykolayiv City 
OSHP "Painting and Isolation Enterprise "Raiduga", Mykolayiv City 
State Enterprise "Ship Building Plant under the name of 61 Communars", Mykolayiv City 
OSHP "Damen Shipyard Ocean", Mykolayiv City 
OSHP "Mykolayiv Malotonn azshna Docks (shipyard)" 
OSHP Ship Building Plant "Liman", Mykolayiv City 
State Enterprise "Research and Production Complex Gas Turbo Construction "Zorya" – "Mashproekt", 
Mykolayiv City 
OSHP "Mykolayiv Enterprise ERA", Mykolayiv City 
OSHP "Equator" Plant", Mykolayiv City 
State Research and Design Ship Building Center of Ukraine, Mykolayiv City 
OSHP "Research and Development Institute of the Automated Systems and IT in the Ship Building", Mykolayiv City 
Odessa Oblast 
Kiliysky Ship Building & Ship Repairs Plant 
Kherson Oblast 
Kherson Ship Building Plant 
Kherson State Plant "Palada" 
Kherson State Plant for Ship Equipment  
OSHP "Dniprovske Enterpri se "ERA", Kherson City 
Central Designers Bureau "Izumrud", Kherson City 
Kyiv City 
OSHP "Leninska Kuznya" Plant" 
Branch Enterprise OSHP "Len inska Kuznya" Plant" – "Lenin ska Kuznya" Docks (Shipyard)" 
Closed Stock Holding Partnership "Kyiv Ship Building & Ship Repair Plant" 
Branch Enterprise of the OSHP "Dniprovske Enterprise "ERA" – "Kyivska "ERA" 
Kyiv State Plant "Burevisnyk" 
OSHP "Kyiv Petrovsky Plant of Automatic Tools"  
Kyiv State Research & Production Complex "Slavutych" 
Research & Development Institute "Kvant-Navigation" 
OSHP "Central Designers Bureau "Shkhuna"  
Sevastopol City 
OSHP "Sevastopol Sea Plant" 
Partnership "Sevmorsudnoremont" 
Partnership "Ship Building & Ship Repair Plant "Lazarevske Admiralteistvo" 
Partnership "Sevmorverf"  WT/ACC/UKR/110/Add.2 
 Page 161 
 
 
 Name of the enterprise 
Partnership "Sevmormash" 
Partnership "Korabel" 
OSHP "Sevastopol Enterprise "ERA" 
State Enterprise "Central Designers Bureau "Chornomorets"  
 WT/ACC/UKR/110/Add.2 
Page 162 ANNEX 10 
(with reference to Items 162 and 166) 
 
Supporting table DS:1 
DOMESTIC SUPPORT:  UKRAINE 
 REPORTING PERIOD:  Calendar years of 2000-2002  
 Measures exempt from the reducti on commitment - "Green Box"  
 
Measure type Name and description of measure 
with reference to criteria in Annex 2 of the Agreement on Agriculture  Monetary value of measure   
 in the relevant year  Data 
Sources 
1 2 3 4 
  
2000 mln 
UAH 2000   
US$   mln 
eq. 2001 mln 
UAH 2001   
US$ mln 
eq. 2002 mln 
UAH 2002   
US$ mln 
eq.   00-02     
Total  
US$ mln 
eq.  00-02     
average   
US$ mln 
eq.  
 UAH/US$ Exchange rate12  5.4402  5.3721  5.3266    
a)  general services 1. General research and development 
and product-specific research 
programs Annex 2, para. 2 (a)13 74.1 13.6        73.1 13.6       112.5 21.1        48.3        16.1 Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Minstry of Agricultural Policy and in Ukrainian Academy o
f 
Agrarian Sciences  
 2. Rural infrastr ucture development: 
water pipelines, sewerage systems 
& facilities, gas & power supply networks, roads, territorial planning Annex 2, para. 2(g),(e)
14 103.7 19.1       232.7 43.3       250.2 47.0       109.3        36.4  Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Ministry of Agricultural Policy, State Committee on Land, State Committee for Water Management; and 
Report on special revenues and their use 
Form No. 4-1 in State Committee on 
Land  
                                                      
12 The calculations are based on the official exchange rate of the hryvnia to the US Dollar as set by the National Bank of Ukrain e (annual average for 2000-2002).  The 
data has been provided by the Currency Regulation Department of the National Bank of Ukraine.  This data is also listed on the NBU's site ( www.bank.gov.ua ). 
13 General research and development, and product-specific research programmes (Annex 2, paragraph 2 (a)) include budgetary alloca tions for the funding of research 
and practical development of exploratory an d applied projects, of state, inter-sectorial and sectorial programmes scientific co mponents of fundamental research by scientific 
institutions of both general nature and specific-product-related nature. 
14 Rural infrastructure development (Annex 2, paragraph 2 (g)) includes the funding of major capital expenditures to construct wa ter pipelines, sewerage systems and 
facilities, gas and power supply networks, personal service facilities, and territorial planning, State Budget's funding of inf rastructure works related to environment protection 
programmes (creation and maintenance of inter-company state irrigation systems, creation of anti-erosion hydro-technical facili ties and re-cultivation of damaged soils).  
  WT/ACC/UKR/110/Add.2
 Page 163Measure type Name and description of measure 
with reference to criteria in Annex 2 of the Agreement on Agriculture  Monetary value of measure   
 in the relevant year  Data 
Sources 
1 2 3 4 
  
2000 mln 
UAH 2000   
US$   mln 
eq. 2001 mln 
UAH 2001   
US$ mln 
eq. 2002 mln 
UAH 2002   
US$ mln 
eq.   00-02     
Total  
US$ mln 
eq.  00-02     
average   
US$ mln 
eq.  
 3.  Agricultural plant pest & animal 
disease control Annex 2, para. 
2(b)15 41 7.5        39.5 7.4        37.2 7.0        21.9          7.3 Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Ministry of Agricultural Policy  
 4. Experience dissemination & 
advisory services, including 
provision of means to facilitate 
transfer of information and research results to producers and consumers Annex 2, para. 2 (d)
16 8 1.5        10.2 1.9        17.4 3.3          6.6          2.2 
        Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Ministry of Agricultural 
Policy 
 5. General inspection & specific 
product inspection services for 
purposes of health care, safety, 
grading or standardization Annex 
2, para. 2(e)17 65.3 12.0        85.6 15.9       175.6 33.0        60.9        20.3 Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Ministry of Agricultural 
Policy, in State Department for 
Veterenary Medicine  
 6. Training, re-training and advanced 
training of experts and workers in 
production and social spheres of 
rural areas Annex 2, para. 2(e)18 138.2 25.4       178.9 33.3       214.5 40.3        99.0        33.0 Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Ministry of Agricultural 
Policy and Ukrainian Academy o f 
Agrarian Sciences  
 7. Land reform: land market 
development, new legislation, land registry, cadastral survey, land titling, land quality mapping, 
extension
19 18.5 3.4        25.3 4.7          3.5 0.7          8.8          2.9 Report on perfomance of institution 
expenditure statement Form No. 2 for relevant year and Report on obtained subventions from other budgets Form 
No. 4-5 in State Committee on Land  
                                                      
15 Pest and disease control (Annex 2, paragraph 2 (b)) includes an ti-epzootic measures and measures to control agricultural plant  pests and diseases. 
16 Experience dissemination and advisory services (Annex 2, paragraph 2 (d)) include maintenance of labour stations, plant protec tion stations providing advisory 
services to producers and disseminating information and also maintenance of advisory offices at local budget's cost. 
17 General inspection and specific product inspection services for purposes of health care, safety, grading or standardisation (A nnex 2, paragraph 2 (e)) include measures 
to maintain state veterinary medical institutions, State inspectorates for seeds, state variety-testing stations and state brea d inspectorates. 
18 Training, re-training and advanced training of experts and workers for production and social spheres of rural areas (Annex 2, paragraph 2 (c)) include maintenance of 
higher educational institutions of grade 1 and grade 2 accredit ation, educational institutions of grade 3 and grade 4 accredita tion, institutions of continuing (postgraduate) 
education of grade 3-4 accreditation (academies, institutes and centres for advanced training, re-training and professional dev elopment) and other educational institutions. 
19 Land reform meets criteria of Annex 2, paragraph 2 "General Services", and includes the providing of services related to land reform implementation:  development of 
new legislation related land issues, land registry, cadastral survey and land quality mapping.  
 WT/ACC/UKR/110/Add.2 
Page 164 Measure type Name and description of measure 
with reference to criteria in Annex 2 of the Agreement on Agriculture  Monetary value of measure   
 in the relevant year  Data 
Sources 
1 2 3 4 
  
2000 mln 
UAH 2000   
US$   mln 
eq. 2001 mln 
UAH 2001   
US$ mln 
eq. 2002 mln 
UAH 2002   
US$ mln 
eq.   00-02     
Total  
US$ mln 
eq.  00-02     
average   
US$ mln 
eq.  
b) public stock- building for 
food security purposes Information not disclosed - - - - -    
c) domestic food aid  not applied 0 0 0 0 0 0 0 0  
d) decoupled income 
support  not applied 0 0 0 0 0 0 0 0  
e) income insurance 
programs not applied 0 0 0 0 0 0 0 0  
f)  payments for relief from 
natural disasters not applied 0 0 0 0 0 0 0 0  
g) structural adjustment 
assistance provided 
through producer 
retirement programs not applied 0 0 0 0 0 0 0 0  
h)  structural adjustment 
assistance provided 
through resource 
retirement programs not applied 0 0 0 0 0 0 0 0  
i)  structural adjustment  
assistance by the 
encouraging of  
investment  not applied 0 0 0 0 0 0 0 0   
  WT/ACC/UKR/110/Add.2
 Page 165Measure type Name and description of measure 
with reference to criteria in Annex 2 of the Agreement on Agriculture  Monetary value of measure   
 in the relevant year  Data 
Sources 
1 2 3 4 
  
2000 mln 
UAH 2000   
US$   mln 
eq. 2001 mln 
UAH 2001   
US$ mln 
eq. 2002 mln 
UAH 2002   
US$ mln 
eq.   00-02     
Total  
US$ mln 
eq.  00-02     
average   
US$ mln 
eq.  
j)  environmental 
programs20   54.1 9.9        52.9 9.8        16.5 3.1        22.9          7.6 
k)  regional assistance 
programs not applied 2 0.4          1.1 0.2          0.5 0.1          0.7          0.2 Report on perfomance of institution 
expenditure statement Form No. 2 for 
relevant year in Ministry of Agricultural Policy, Ministry of Forestry and State Committee for Water Management  
Total "Green Box" 504.90 92.81 699.30 130.17 827.90 155.43 378.41 125.91  
 
                                                      
20 This measure meets criteria listed in Annex 2, paragraph 12 of the WTO Agreement on Agricultures.  The right to such payments is given under clearly determined 
governmental programmes for environment protection and depend on meeting specific conditions under the governmental programmes.   The cost of the measure is estimated 
within expenses stated in the State Budget, in the section entitled "Environmental Protection".  Expenses in "Environmental Pro tection" of the State Budget are calculated on the 
basis of measures provided for by environmental programmes a pproved under the existing procedure (in due course):  "Protection and rational use of water resources", 
"Protection and rational use of soils", "Setting up of protective tree plantations and windbelts", "Preservation of nature rese rves".  Payments under Article "Protection and rational 
use of water resources" were used for protection against harmful effects by waters from agricultural lands and for anti-floodin g measures.  The setting up of protective tree 
plantations and windbelts is governed by Ukraine's Forestry Code No. 3852-XII dated 21 April 1994 and by Ukraine's law No. 1264 -XII dated 25 May 1991 "On Protection of 
the Environment".  Major regulatory documents governing the activities of the nature reserve-related institutions are Ukraine's  law "On Nature Reserves of Ukraine" and the 
program for prospective development of nature reserve-related activities in Ukraine, approved by the Supreme Rada of Ukraine's (resolution) No. 177/94-BP dated 
29 September 1994.  Payments as to protection and rational use of soils include the funding for fundamental improvement of agri cultural companies' soils.  Soils fundamental 
improvement funds are used to lime acid soils and gypsum medium and supersalt soils and also individual salt parcels on salt-fr ee soil fields.  The state budget funds of this 
designation are directly allocated to agricultural companies on the basis of selection (competition) committees' decisions.  
 WT/ACC/UKR/110/Add.2 
Page 166 Supporting Table DS:4 
DOMESTIC SUPPORT: UKRAINE 
REPORTING PERIOD: calendar years of 2000-2002 (on average) 
 
Calculation of the Total Aggregate Measurement of Support (AMS) 
 
Description of 
Basic Products Value of 
Production 
(Av. 2000-02) 
(m USD) Maximum level 
de minimis 
support 
(1c = 1b x 0.05) 
(m USD) Product-Specific 
AMS (from 
supporting tables 
DS:5 to DS:7) 
(m USD) Product-Specific 
Measurements 
of Support 
(from supporting 
table DS:8) 
(m USD) Non-Product- 
Specific AMS 
(from Supporting 
Table DS:9) 
(m USD) Current 
Total AMS 
(aggregate) 
(5=2+3+4, 
if (2+3+4)>1c; 
otherwise 5=0.0) 
(m USD) Comments 
(Col. 5 formulas 
apply to rows 1 to 15, 
row 19 only) 
1a 1b 1c 2 3 4 5  
1. Wheat 1,214.2 60.71 2.0 0.0  0.0  
2.  Barley 578.6 28.93 0.7 0.0  0.0  
3.  Rye 88.0 4.40 0.1 0.0  0.0  
4.  Maize 292.5 14.62 1.0 0.0  0.0  
5.  Oats 57.0 2.85 0.03 0.0  0.0  
6.  Buckwheat 41.0 2.05 0.04 0.0  0.0  
7.  Pulses 73.7 3.69 0.05 0.0  0.0  
8.  Sugar beets 347.6 17.38 204.1 0.0  204.1  
9.  Cattle 725.0 36.25 38.8 0.0  38.8  
10.  Pigs 879.8 43.99 10.0 0.0  0.0  
11.  Poultry 318.0 15.90 6.2 0.0  0.0  
12.  Sheep and goats 18.5 0.92 0.5 0.0  0.0  
13.  Milk 1,427.1 71.35 60.5 0.0  0.0  
14.  Hops 1.7 0.08 2.3 0.0  2.3  
15. Flax 2.6 0.13 0.7 0.0  0.7  
16. Total, 15 products 6,841.0     242.9 In col. 5, row 16 = sum 
(rows 1 to 15) 
17. Other agricultural 
products 4,551.8       
18. All agricultural 
products 11,392.8 569.64   840.0 840.0  
19.  Current Total AMS (aggregate)     1,082.9 In col.5, row 19 = row 
16 + row 18  
  
  WT/ACC/UKR/110/Add.2
 Page 167Supporting Table DS:5 
DOMESTIC SUPPORT: UKRAINE 
REPORTING PERIOD: calendar years of 2000-2002 
 
Product-Specific Aggregate Measurements  of Support: Mar ket Price Support 
 
Description of 
Basic 
Products Calendar year Measure type: 
minimum 
prices for 
sugar   Applied 
admin. price 
(national 
currency per 
ton) Applied 
admin. price 
(USD/t) External 
reference 
price (USD/t)Eligible 
production 
(thousand t) Assoc. levies  
(m USD) Total market 
price support 
8=((4а-5)*6)-
7 (m USD) Data Sources 
1 2 3 4 4 а 5 6 7 8 9 
2000  2,000 368 273 1552  146.9 Column 4: Minimum prices for sugar are set by: Ukrainian 
Cabinet of Ministers' Resolution No. 868 of 2 June 2000 
"On some issues of state regulation of sugar production and 
sales"; Ukrainian Cabinet of Ministers' Resolution No. 201 of 1 March 2001 "Some issues of state regulation o
f 
production and sales of sugare made from 2001 harvest 
sugar beets"; Ukrainian Cabinet of Ministers' Resolution 
No. 142 of 15 February 2002 "Some issues of state 
regulation of sugar production and sales"  
2001  2,370 441 301 1657  232.3 Column 5: External reference price is calculated based on 
the export price of 1 ton of white sugar according to data in White sugar, Paris Contract No .5, fob, European ports, 
London Monthly price for refined sugar (LIFFE), 
FAS/USDAReport: Sugar/World Markets and Trade   
2002  2,370 445 282 1430  233.0 Column 6: Production of sugar produced from sugarbeets, 
Ukrainian Statistical Yearbook's data for relevant years  Sugar beets 
av. 2000-2002  417.9 285.3 1546.3  204.0  
 
Note:  
 
External reference price is calculated based on the export price of 1 tonne of white sugar according to data in White sugar, Pa ris Contract No.5, fob, European ports, London 
Montly price for refined sugar (LIFFE),  (F AS/USDAReport: Sugar/World Markets and Trad e ) adjusted to include transportation co sts (freight) US$28/tonne and handling costs  
US$25/tonne. Annual price of sugar is the simple average of 12 monthly prices  
 WT/ACC/UKR/110/Add.2 
Page 168 Supporting Table DS:6 
 
DOMESTIC SUPPORT: UKRAINE   
REPORTING PERIOD:  calendar years 2000-2002 
 
Product-Specific Aggregate Meas urements of Support:  Non-Exempt Direct Payments 
 
Description 
of Basic 
Products Calendar 
year Measure type Applied admin. 
price External 
reference 
price  Eligible 
production Total price-related 
direct payments  Other non-
exempt direct 
payments     
(m US$)21 Associated 
duties or 
taxes      
(m US$) Total 
direct 
payments 
(10=7+8)  
m  US$   Data sources 
1 2 3 4 5 6 7 8 8 а 9 10 11 
2000 Subsidies for products sold to processing companies, using the VAT22 127.1 23.4  23.4 
2001 Subsidies for large-weight grades + subsidies for products sold to processing companies, 
using the VAT23 40.4  40.4 
2002 Subsidies for large-weight grades + subsidies for products sold to processing companies, 
using the VAT11 50.2  50.2 
av. 00-02      203.9 38.0  38.0 
2000        23.4 
2001        40.4 
2002        50.2 Cattle 
av. 00-02 Total cattle 
       38.0 Report on purchases of livestock, 
poultry Form #11-ZAG of Ukraine's 
State Statistics Committee for 
relevant year, and Report on 
performance of institution 
expenditure statement Form No. 2 
for relevant year in Ministry o f 
Agricultural Policy  
2000 Subsidies for products sold to processing companies (using the VAT) 9.9 1.8  1.8 
2001      19 3.5  3.5 
2002      57.0 10.7  10.7 
av. 00-02      28.6 5.4  5.4 
2000        1.8 
2001        3.5 
2002        10.7 Poultry 
av. 00-02 Total poultry 
       5.4 Report on purchases of livestock, 
poultry  Form No. 11-ZAG o f 
Ukraine's State Statistics Committee 
for relevant year 
                                                      
21 The calculations are based on the official exchange rate of the Hryvnia to the US Dollar (2000-2002) as set by the National Ba nk of Ukraine (national average).  The 
data has been provided by the Currency Regulation Department of the National Bank of Ukraine.  This data is also listed on the NBU's site ( www.bank.gov.ua ). 
22 According to Article 11.21 of Ukraine's Law No. 168 dated 3 April 1997 "On Value Added Tax", the whole sum of the VAT payable to the budget by processing 
companies of any legal structure for meat and meat products sold by them, shall be used exclusively to pay subsidies to agricul tural producers for meat in live weight sold by 
them to processing companies. 
23 Extra payment for large-weight cattle grades is the extra paymen t due to agricultural producers of any legal structure, and to  natural persons for cattle of larger weight 
grades sold by them to processing companies and procurement organi zations for slaughter.  These extra sums have been paid as fo llows:  45 kopeks for each kilogram of young 
cattle of dairy and combined breeds; 89 kopeks for each kilogram  accepted live weight of young cattle of meat breeds and types.   According to Article 11.21 of Ukraine's Law 
No. 168 dated 3 April 1997 "On Value Added Tax", the whole sum of the VAT payable to the budget by processing companies of any legal structure for meat and meat products 
sold by them, shall be used exclusively to pay subsidies to agricultural producers for meat in live weight sold by them to proc essing companies.  
  WT/ACC/UKR/110/Add.2
 Page 169Description 
of Basic 
Products Calendar 
year Measure type Applied admin. 
price External 
reference 
price  Eligible 
production Total price-related 
direct payments  Other non-
exempt direct 
payments     
(m US$)21 Associated 
duties or 
taxes      
(m US$) Total 
direct 
payments 
(10=7+8)  
m  US$   Data sources 
1 2 3 4 5 6 7 8 8 а 9 10 11 
2000 Subsidies for products sold to processing companies (using the VAT) 11 36 6.6  6.6 
2001      47.7 8.9  8.9 
2002      57.0 10.7  10.7 
av. 00-02      46.9 8.7  8.7 
2000        6.6 
2001        8.9 
2002        10.7 Pigs 
av. 00-02 Total pigs 
       8.7 Report on purchases of livestock, 
poultry  Form No. 11-ZAG o f 
Ukraine's State Statistics Committee 
for relevant year 
2000 Subsidies for products sold to processing companies (using VAT) 11 0.1 0.02  0.0 
2001      2.45 0.46  0.5 
2002      0.2 0.04  0.0 Sheep & 
goats 
av. 00-02      0.9 0.17  0.2 Report on purchases of livestock, 
poultry  Form No. 11-ZAG o f 
Ukraine's State Statistics Committee 
for relevant year 
2000 Subsidies for mil sold to processing  companies (using VAT), and subsidies for 
environmentally safe milk24 41.7  41.7 
2001      381.25 71.0  71.0 
2002      337.5 63.4  63.4 Milk 
av. 00-02      315.1 58.7  58.7 Report on purchases of milk and 
dairy products Form No. 13-ZAG o f 
Ukraine's State Statistics Committee, and Report on 
performance of institution 
expenditure statement Form No. 2 
for relevant year in Ministry o f 
Agricultural Policy  
       UAH/$ 5.4402    
       UAH $ 5.3721    
       UAH/$ 5.3266    
 
                                                      
24 According to Article 11.21 of Ukraine's Law No. 168 dated 3 April 1997 "On Value Added Tax", the whole sum of the VAT payable to the budget by processing 
companies of any legal structure for meat and meat products sold by them, shall be used exclusively to pay subsidies to agricul tural producers for meat in live weight sold by 
them to processing companies.  Subsidies for environmentally safe  milk.  The sum of these subsidies payable to agricultural pro ducers, shall be set based on the volume of 
products purchased by mile processing companies producing  special products for baby nutrition (baby milk) and on the subsidy f ixed at UAH240 per ton of environmentally safe 
milk.  
 WT/ACC/UKR/110/Add.2 
Page 170 Supporting Table  DS:7 
 
DOMESTIC SUPPORT: UKRAINE 
REPORTING PERIOD: calendar years of 2000-2002 
 
Product-Specific Aggregate Measurements of Support:  Other Product-Specific Support and Total Product-Specific AMS  
 
Description Calendar 
year Measure type Other 
product-
specific 
budgetary 
outlays      
(m UAH) Other 
product-
specific 
budgetary 
outlays      
(m US$)25 Other 
product-
specific 
support   (m 
US$) Associated 
fees/levies 
(m US$) Total other 
product-
specific 
support 
(8=5+6-7) (m 
US$) Market price 
support 
(supporting 
table DS:5) 
(m US$) Non-exempt 
direct 
payments 
(supporting 
table      
DS:6)       
(m US$) Associated 
fees/levies 
(m US$) Total 
product-
specific 
AMS 
(12=8+9+10) 
(m US$) 
1 2 3 4 5 6 7 8 9 10 11 12 
Exchange rates 2000 5.4402 2001 5.3721 2002 5.3266  
2000 9.80 1.80   1.80    1.80 
2001 19.00 3.54   3.54  3.54 
2002 3.10 0.58   0.58  0.58 1. Wheat 
av. 00-02 State Program for Plant-Breeding 
(partial reimbursement for price of 
seeds) (Report on performance of 
institution expenditure statement 
Form No. 2 in Ukraine's Ministry of Agricultural Policy) for columns 4 and 5
26 10.63 1.97   1.97  1.97 
2000 4.40 0.81   0.81  0.81 
2001 5.00 0.93   0.93  0.93 
2002 1.20 0.23   0.23  0.23 2. Barley 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
3.53 0.65   0.65  0.65 
2000 0.70 0.13   0.13  0.13 
2001 0.70 0.13   0.13  0.13 
2002 0.10 0.02   0.02  0.02 3. Rye 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
0.50 0.09   0.09  0.09 
2000 2.70 0.50   0.50  0.50 
2001 6.40 1.19   1.19  1.19 
2002 6.40 1.20   1.20  1.20 4. Maize 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
5.17 0.96   0.96  0.96 
2000 0.20 0.04  0.04  0.04 
2001 0.20 0.04   0.04  0.04 
2002 0.10 0.02   0.02  0.02 5. Oats 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
0.17 0.03   0.03  0.03 
                                                      
25 The calculations are based on the official exchange rate of the Hryvnia to the US dollar (2000-2002) as set by the National Ba nk of Ukraine (annual average).  This 
data has been provided by the Currency Regulation Department of the National Bank of Ukraine.  This data is also listed on the NBU's site ( www.bank.gov.ua ). 
26 Under the budget-funded State Program for Plant-Breeding, agricu ltural producers are partly reimbursed for variety surcharges in elite seeds bought by the producers.  
The funding is carried out in accordance with Ukraine's Law No. 3690 dated 15 December 1993 "On Seeds".  
  WT/ACC/UKR/110/Add.2
 Page 171Description Calendar 
year Measure type Other 
product-
specific 
budgetary 
outlays      
(m UAH) Other 
product-
specific 
budgetary 
outlays      
(m US$)25 Other 
product-
specific 
support   (m 
US$) Associated 
fees/levies 
(m US$) Total other 
product-
specific 
support 
(8=5+6-7) (m 
US$) Market price 
support 
(supporting 
table DS:5) 
(m US$) Non-exempt 
direct 
payments 
(supporting 
table      
DS:6)       
(m US$) Associated 
fees/levies 
(m US$) Total 
product-
specific 
AMS 
(12=8+9+10) 
(m US$) 
1 2 3 4 5 6 7 8 9 10 11 12 
2000 0.30 0.06  0.06 0.06 
2001 0.30 0.06   0.06  0.06 
2002 0.10 0.02   0.02  0.02 6. Buckwheat 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
0.23 0.04   0.04  0.04 
2000 0.20 0.04  0.04  0.04 
2001 0.20 0.04   0.04  0.04 
2002 0.40 0.08   0.08  0.08 7. Pulses 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
0.27 0.05   0.05  0.05 
2000 0.00 0.00  0.00 0.67  0.67 
2001 0.80 0.15   0.15 57.85  58.00 
2002 0.30 0.06   0.06 115.28  115.34 8. Sugar beets 
av. 00-02 State Program for Plant-Breeding 
(for columns 4 and 5) 
0.37 0.07   0.07 204.04  204.11 
2000 2.60 0.48   0.48 23.36 23.84 
2001 5.10 0.95   0.95 40.42 41.37 
2002 4.70 0.88   0.88 50.22 51.11 9. Cattle in live  
weight 
av. 00-02 State Program for Livestock-
Breeding (Report on performance of institution expenditure 
statement Form No. 2 in Ukraine's 
Ministry of Agricultural Policy) (for Column 4)
27 4.13 0.77   0.77 38.00 38.77 
2000 4.50 0.83   0.83 6.62 7.44 
2001 9.70 1.81   1.81 8.88 10.68 
2002 6.80 1.28   1.28 10.70 11.98 10. Pigs 
in live weight 
av. 00-02 State Program for Livestock-
Breeding (for columns 4 and 5) 
7.00 1.30   1.30 8.73 10.04 
2000 3.30 0.61   0.61 1.82 2.43 
2001 6.70 1.25   1.25 3.54 4.78 
2002 3.90 0.73   0.73 10.70 11.43 11. Poultry in live 
weight 
av. 00-02 State Program for Livestock-
Breeding (for columns 4 and 5) 
4.63 0.86   0.86 5.35 6.21 
2000 1.20 0.22  0.22 0.02 0.24 
2001 2.20 0.41   0.41 0.46 0.87 
2002 1.80 0.34   0.34 0.04 0.38 12. Sheep and 
goats 
av. 00-02 State Program for Livestock-
Breeding (for columns 4 and 5) 
1.73 0.32   0.32 0.17 0.49 
2000 7.30 1.34  1.34 41.65 42.99 
2001 11.90 2.22   2.22 70.97 73.18 13. Milk 
2002 State Program for Livestock-
Breeding (for columns 4 and 5) 
10.70 2.01   2.01 63.36 65.37 
                                                      
27 The funding is carried out under the Program No. 3691 dated 15 December 1993 "On Pedigree Livestock Breeding".  Budgetary fund s are used to partly reimburse 
expenses for the strengthening of the genetic potential of livestock and poultry, for the creation of one's own pedigree base, for biotechnological methods of herd and for 
purchases of sperm products.  
 WT/ACC/UKR/110/Add.2 
Page 172 
Description Calendar 
year Measure type Other 
product-
specific 
budgetary 
outlays      
(m UAH) Other 
product-
specific 
budgetary 
outlays      
(m US$)25 Other 
product-
specific 
support   (m 
US$) Associated 
fees/levies 
(m US$) Total other 
product-
specific 
support 
(8=5+6-7) (m 
US$) Market price 
support 
(supporting 
table DS:5) 
(m US$) Non-exempt 
direct 
payments 
(supporting 
table      
DS:6)       
(m US$) Associated 
fees/levies 
(m US$) Total 
product-
specific 
AMS 
(12=8+9+10) 
(m US$) 
1 2 3 4 5 6 7 8 9 10 11 12 
 av. 00-02  9.97 1.86   1.86 58.66 60.52 
2000 7.59 1.40  1.40  1.40 
2001 11.35 2.11   2.11  2.11 
2002 17.73 3.33   3.33  3.33 14. Hops 
av. 00-02 State support of hops products 
production. (Report on 
performance of institution 
expenditure statement Form No. 2 
in Ukraine's Ministry of 
Agricultural Policy)28 12.22 2.28   2.28  2.28 
2000 2.77 0.51   0.51 0.51 
2001 6.80 1.27   1.27  1.27 
2002 2.25 0.42   0.42  0.42 15. Flax 
av. 00-02 State Program for Support of flax 
products production  (Report on 
performance of institution 
expenditure statement Form No. 2 
in Ukraine's Ministry of 
Agricultural Policy)29 3.94 0.73   0.73  0.73 
 
                                                      
28 The sum of funds used to support farms producing hop products is set based on calculated cost per 1ha of hop-gardens, but not more than UAH1,200 per 1ha of young 
and fruit-bearing hop plants, depending on hop plants' productivity .  Assigned funds are used to buy suspension material and pe st control means needed to produce hop products. 
29 Funds assigned under State Program for support of production of hop products are used to supply flax-growing farms with materi al and technical resources (seeds, 
plant production means, mineral fertilizers, equipment and other resources necessary for flax production, implementation of adv anced production technologies in the flax sector).  
  WT/ACC/UKR/110/Add.2
 Page 173Supporting Table DS:9 
 
DOMESTIC SUPPORT: UKRAINE 
REPORTING PERIOD:  calend ar years of 2000-2002 
 
Non-Product-Specific AMS  
 
Measure 
type Calendar 
year Non-product-
specific  
budgetary 
outlays (in 
UAH) Non-product-
specific  
budgetary 
outlays (in 
US$) Other non-
product-
specific 
support (in 
UAH) Other non-
product-
specific 
support (in 
US$) Associated 
fees/taxes (in 
US$) Total non-
product-
specific 
support (in 
US$) Data sources  
(6=3b+4b-5) 
1 2 3a 3b 4a 4b 5 6 7 
2000 0.0 0.0  0.0   
2001 0.0 0.0  0.0   
2002 15.8 3.0  0.0   1. Partial reimbursement 
of price of complex 
domestic agricultural 
equipment30 av. 00-02 5.3 1.0  0.0  1.0 Report on performance of institution expenditure 
statement Form No. 2 for relevant year in Ministry o f 
Agricultural Policy and Report on revenues and use 
of other revenues from the special fund Form #4-3 for 
relevant year in Ukraine's Ministry of Agricultural 
Policy  
2000 49.9 9.2  0.0   
2001 157.1 29.2  0.0   
2002 119.4 22.4  0.0   2.  Partial reimbursement 
of loan interest rates from commercial banks with regard to 
privileged loans
31 av. 00-02 108.8 20.3  0.0  20.3 Report on performance of  institution expenditure 
statement Form No. 2 for relevant year in Ukraine's Ministry of Agricultural Policy  
                                                      
30 Partial reimbursement of the price of the equipment is set at 30 per cent of the price for combine harvesters and tractors in accordance with the list and prices 
determined by Ukraine's Ministry of Agricultural Policy and agreed by the Inter-Departmental Expert Council on the determinatio n of priorities in the manufacture of new 
equipment and hardware for agricultural producers, according to Ukraine's Cabinet of Ministers' Resolution No. 1030 dated 18 Au gust 1997 "On Guidelines for Provision of the 
Agroindustrial Complex with Equipment". 
31 Since 2000, budgetary funds have been used to financially support agroindustrial companies through the mechanism of cheaper lo ans from commercial banks by 
setting partial reimbursement of the rate on commercial banks' loans (reimbursement).  For agricultural companies, funds are us ed to credit their own current production costs 
exclusively connected with purchases of seeds, feed, mineral fertilizers, plant protection means (pesticides), fuel and lubrica nts, spare parts for repairs of agricultural hardware 
and equipment, and also purchases of tractors, combine harvesters of all types and other agricultural hardware domestically pro duced (except for use of obtained loans to pay 
rents for the hardware received under financial leasing agreements).  In 2000, the size of the reimbursement was 50 per cent of  NBU discount rate on the day of signature of the 
loan agreement (but not less 17.5 per cent per annum).  In 2001, the size of the reimbursement to agricultural producers was 70  per cent of NBU discount rate on the day of 
signature of the loan agreement, in accordance with Ukraine's Cabinet Ministers Resolution No. 59 dated 27 January 2001 "On Par tial Reimbursement of the Rate on Commercial 
Banks' Loans Extended to Agricultural Producers".  In 2002, the size of reimbursement to agricultural producers was up 70 per c ent of the discount rate set by the National Bank 
of Ukraine, on the day of signature of the loan agreement (but not less than 10 per cent per annum), for loans in the Ukrainian  national currency (the Hryvnia) and up to 5 per cent 
for foreign currency loans.  
 WT/ACC/UKR/110/Add.2 
Page 174 Measure 
type Calendar 
year Non-product-
specific  
budgetary 
outlays (in 
UAH) Non-product-
specific  
budgetary 
outlays (in 
US$) Other non-
product-
specific 
support (in 
UAH) Other non-
product-
specific 
support (in 
US$) Associated 
fees/taxes (in 
US$) Total non-
product-
specific 
support (in 
US$) Data sources  
(6=3b+4b-5) 
1 2 3a 3b 4a 4b 5 6 7 
2000 3.0 0.6  0.0   
2001 9.2 1.7  0.0   
2002 4.2 0.8  0.0   3.  Support to individual 
farmers32 
av. 00-02 5.5 1.0  0.0  1.0 Report on performance of  institution expenditure 
statement Form No. 2 for relevant year in Ministry o f 
Agricultural Policy and Report on revenues and use 
of other revenues from the special fund Form #4-3 for 
relevant year in Ukraine's Ministry of Agricultural 
Policy  
2000 94.1 17.3  0.0   
2001 90.2 16.8  0.0   
2002 117.9 22.1  0.0   4.  Maintenance of young 
orchards33 
av. 00-02 100.7 18.7  0.0  18.7 Report on revenues and use of the State budget's 
special fund Form No. 4-6 for 2000-2001 and Report 
on revenues and use of other revenues from the special fund Form No. 4-3 for relevant year in Ukraine's Ministry of Agricultural Policy  
2000  0.0 1,494.0 274.6   
2001  0.0 1,426.0 265.4   
2002  0.0 1,365.0 256.3   5. Benefits of 
implementation of 
fixed agricultural tax 
(thanks to decreased 
tax burden)34 av. 00-02  0.0 1,428.3 265.4  265.4 Calculated on the basis of data from the State Tax 
Administration of Ukraine's preliminary reporting and 
annual accounting reports of Ukrainian agricultural 
companies  
2000  0.0 0.0 0.0   
2001  0.0 0.0 0.0   
2002  0.0 129.0 24.2   6.  Writing off budgetary 
loan advances during 
1994-9935 
av. 00-02  0.0 43.0 8.1  8.1 Cabinet of Ministers of Ukraine's Order No. 186- p 
dated 3 April 2002  
                                                      
32 Support to individual farms is provided in accordance with Ukraine's Law No. 2009 dated 20 December 1991 "On the Individual Fa rm" and Ukraine's Cabinet of 
Ministers Resolution No. 357 dated 13 April 2001 "On Use of Funds Assigned for the State Support of Individual Farms", and in o rder to ensure the implementation of the state 
policy of supporting individual farms and crea tion of stable financial conditions for th eir formation.  The source of the finan cial support is the funds in the relevant years state 
budget assigned for the financial support of individual farms.  Recipients of the budgetary funds are the Ukrainian State Fund for Support of Individual Farms and its divisions 
(branches) in the Autonomous Republic of Crimea and Oblasts (regions) which (divisions) distribute and transfer appropriate fun ds to individual farms. 
33 "Funding of starting and maintaining young orchards" budgetary program is funded by the special fund within the state budget ( 2000-2002). 
34 Under Ukraine's Law No. 320 dated 17 December 1998 "On Fixed Agricultural Tax", agricultural companies are entitled to the fix ed agricultural tax which has 
replaced 12 taxes and duties (fees) effective prior to the implementation of the tax.  When calculating (the size of) the benef it of the fixed agricultural tax for agricultural 
producers, sums of the fixed tax calculated in the relevant year (2000-2002) were compared to 1997 sum of calculated taxes and tax payments which were incorporated into the 
fixed tax.  The year of 1997 is used as the basis for compar ison when calculating the benefit of implementation of the fixed ag ricultural tax. 
35 According to Ukraine's Law No. 2237 dated 18 January 2001 "On Settlement of Debt for Budgetary Loans Extended to State-Owned a nd Other Agricultural 
Enterprises of all types of Ownership and of Economic Activity Through Servicing, Purchasing and Processing Agroindustrial Comp anies, and on Restructuring of Agroindustrial 
Processing Companies' Arrears in Taxes and Duties (Mandatory Payments)", sums owed by agricultural enterprises of all types of ownership and of economic activity as of 
1 January 2000 for 1994-1999 budgetary loans, grain from the state resources and state reserves, used to purchase inputs for ag ricultural production, shall be decreased by 
UAH129 million.  
  WT/ACC/UKR/110/Add.2
 Page 175Measure 
type Calendar 
year Non-product-
specific  
budgetary 
outlays (in 
UAH) Non-product-
specific  
budgetary 
outlays (in 
US$) Other non-
product-
specific 
support (in 
UAH) Other non-
product-
specific 
support (in 
US$) Associated 
fees/taxes (in 
US$) Total non-
product-
specific 
support (in 
US$) Data sources  
(6=3b+4b-5) 
1 2 3a 3b 4a 4b 5 6 7 
2000  0.0 5,555.5 1,021.2   
2001  0.0 774.3 144.1   
2002  0.0 104.6 19.6   7. Writing off tax arrears
36  
av. 00-02  0.0 2,144.8 395.0  395.0 Certificate on written off tax arrears according to the 
State Tax Administration of Ukraine's preliminary 
data (records of tax payers' personal accounts) and 
according to the Pension Fund's day-to-day records  
2000  0.0 117.1 21.5   
2001  0.0 582.4 108.4   
2002  0.0 1,393.3 261.6   8. Accumulation of VAT 
for purchases of inputs 
for agricultural 
production37 av. 00-02  0.0 697.6 130.5  130.5 The State Tax Administration of Ukraine's Report 
No. 1-п o n  a c t u a l  s u m s  o f  t a xes, duties (mandatory 
payments) paid to the budgets and other special-
purpose funds (as reference only)   
Total, all types of support сер. 00-02      840.0  
     2000 UAH/$ 5.4402  
     2001 UAH/$ 5.3721  
     2002 UAH/$ 5.3266  
                                                      
36 In 2000, agricultural producers' tax arrears were written off in accordance with Article 1 of Ukraine's Law No. 1565 dated 16 March 2000 "On Writing Off Tax 
Payers' Arrears in Taxes and Duties (Mandatory Payments) in Conn ection with the Reforming of Agricultural Companies".  Written off were arrears in taxes and duties 
(mandatory payments) to budgets of all levels, including arrears in penalties, fines and financial sanctions calculated and imp osed under legislation existing as of 1 May 2000.  In 
2001, tax arrears were written off in accordance with Article 1 of Ukraine's Law No. 2239 dated 18 January 2001 "On Amendments to Ukraine's Law 'On Writing off Tax Payers' 
Arrears in Taxes and Duties (Mandatory Payments) in Connection with the Reforming of Agricultural Companies'".  In 2002, tax ar rears were written off in accordance with 
Article 18 of Ukraine's Law No. 2181 dated 21 December 2000 "On Procedure for Tax Payers' Discharge from Obligations to Budgets  and State Special-Purpose Funds".  In 200, 
agricultural producers' arrears in contributions to the Pension Fund were written off in accordance with Article 1 of Ukraine's  Law No. 1565 dated 16 March 2000, in 2001 – 
according to Article 18 of Ukraine's Law No. 2181 dated 21 December 2000.  In 2000, agricultural producers' arrears in contribu tions to the Fund of Social Insurance against 
temporary disability were written off according to Article 1 of Ukraine's Law No. 1565 dated 16 March 2000, in 2001-2002 – acco rding to Articles 18-19 of Ukraine's Law No. 
2181 dated 21 December 2000. 
37 The VAT is accumulated in accordance with Article 11.29 of Ukraine's Law No. 168 dated 3 April 1997 "On Value Added Tax".  Und er Article 11.29, agricultural 
companies are exempt until 1 January 2004, from the VAT on sales of products (work, services) of their own production, includin g products (except for products subject to excise 
duty) produced from their own agricultural raw materials under give-and-take arrangements, except for sales of milk and meat in  live weight to processing companies of 
agricultural producers irrespective of legal structure and ownership type, in which the sum obtained from the sale of agricultu ral products of own productions and processed 
products for the previous reporting (fiscal) year, is not less than 50 per cent of the enterprises total gross income.  Under t he procedure approved by Ukraine's Cabinet of 
Ministers Resolution No. 271 dated 28 February 1999 (as worded in Ukraine's Cabinet of Ministers Resolution No. 374 dated 23 Ap ril 2001), the rest (balance) of tax obligations 
according to the return (declaration) on the VAT as to sold products (work, services) of own production, including products (ex cept for products subject to excise duty) produced 
from their own agricultural raw materials under give-and-take arrangements, that is the difference between  the VAT sum obtaine d by agricultural producers from buyers, and the 
VAT sum paid by them to suppliers, shall be transferred by agricu ltural producers from the current account into a separate acco unt with the time-period set for the transfer of the 
VAT sum to the budget.  The stated separate account must be opened by the agricultural producer within one reporting period.  T he rest (balance) of the tax credit according to 
the mentioned declaration, that is the negative difference between the VAT sum obtained by agricultural producers from buyers a nd the VAT sum paid by them to suppliers, shall 
be allocated to agricultural producers in order for the next re porting periods' tax obligations to be decreased.  Funds transfe rred by agricultural producers into the separate account 
shall be used by them to purchase inputs for agricultural production.  The funds shall be recovered by the state budget under t he mandatory (un-contestable) procedure in case of 
their non-targeted use.  
 WT/ACC/UKR/110/Add.2 
Page 176  
Working Table 1 
VALUE OF UKRAINIAN AGRICULTURAL PRODUCTION IN  2000-2002 
 
Product description Year Production 
thousand ton Price 
UAH/ton Price 
US$/ton Value 
in US$38 
(3x5)/1000 Comments 
139 240 341 442 5 6 7 
Exchange rates (UAH/US$) 2000 5. 4402 2001 5.3721  2002 5.3266 
2000 10,197 487 89.5 912.8  
2001 21,348.4 386 71.9 1,533.9  
2002 20,555.6 309.9 58.2 1,195.9  1. Wheat 
av. 00-02 17,367  73.2 1,214.2  
2000 6872 374.2 68.8 472.7  
2001 10,185.7 354.1 65.9 671.4  
2002 10,363.8 304.2 57.1 591.9  2. Barley 
av. 00-02 9141  63.9 578.6  
2000 968.3 468.8 86.2 83.4  
2001 1,822.5 342 63.7 116.0  
2002 1,511.2 227.7 42.7 64.6  3. Rye 
av. 00-02 1434  64.2 88.0  
2000 426.1 349.9 64.3 27.4  
2001 266.5 305.9 56.9 15.2  
2002 111.5 273.7 51.4 5.7  4. Millets 
av. 00-02 268  57.5 16.1  
2000 3848 386.4 71.0 273.3  
2001 3,640.7 454.4 84.6 307.9  
2002 4,180 377.4 70.9 296.2  5. Maize 
av. 00-02 3,890  75.5 292.5  
2000 881.4 345.6 63.5 56.0  
2001 1,115.7 326.9 60.9 67.9  
2002 943 266.8 50.1 47.2  6. Oats 
av. 00-02 980  58.2 57.0  
                                                      
38 The calculations are based on the official exchange rate of the Ukrainian Hrynia to the US dollar (2000-2002) as set by the Na tional Bank of Ukraine (annual average).  
This data has been provided by the Currency Regulation Department of the National Bank of Ukraine.  This data is also listed on  the NBU's site ( www.bank.gov.ua ). 
39 Ukraine's Statistical yearbook for 2000-2002, "Harvested areas, Yield, Gross quantities of crops harvested" "Livestock product ion" -  statistical annual reports of the 
State Statistics Committee of Ukraine 
40 Prices for agricultural products sold by producers, according to the State Statistics Committee of Ukraine 
41 Calculation 
42 Calculation  
  WT/ACC/UKR/110/Add.2
 Page 177Product description Year Production 
thousand ton Price 
UAH/ton Price 
US$/ton Value 
in US$38 
(3x5)/1000 Comments 
139 240 341 442 5 6 7 
2000 480.6 748 137.5 66.1  
2001 387.6 532.5 99.1 38.4  
2002 209.4 470.2 88.3 18.5  7. Buckwheat 
av. 00-02 359  108.3 41.0  
2000 89.7 706.6 129.9 11.7  
2001 68.9 653.7 121.7 8.4  
2002 75.4 775.8 145.6 11.0  8. Rice 
av. 00-02 78  132.4 10.3  
2000 652 575 105.7 68.9  
2001 827.3 529.6 98.6 81.6  
2002 809.5 465.2 87.3 70.7  9. Pulses 
av. 00-02 763  97.2 73.7  
2000 3457 522.6 96.1 332.1  
2001 2,250.6 783.2 145.8 328.1  
2002 3,270.5 843.7 158.4 518.0  10. Sunflower seeds 
av. 00-02 2,993  133.4 392.7  
2000 13,199 121.5 22.3 294.8  
2001 15,574.5 139.1 25.9 403.3  
2002 14,452.5 127.1 23.9 344.9  11. Sugar beets 
av. 00-02 14,409  24.0 347.6  
2000 1,316 2,949.3 542.1 713.4  
2001 1,102.5 3,940.29 733.5 808.7  
2002 1,191.3 2,918.8 548.0 652.8  12. Cattle in live weight 
av. 00-02 1,203.2  607.9 725.0  
2000 947.8 4,580.85 842.0 798.1  
2001 820.2 6,805.97 1,266.9 1,039.1  
2002 834.8 5,119.3 961.1 802.3  13. Pigs in live weight 
av. 00-02 867.6  1,023.3 879.8  
2000 262.7 5,739.84 1,055.1 277.2  
2001 326.1 5,577.39 1,038.2 338.6  
2002 401 4493.4 843.6 338.3  
av. 00-02 329.9  979.0 318.0  14. Poultry in live weight 
      
2000 38.8 1,769.7 325.3 12.6  
2001 34.6 2,986.2 555.9 19.2  
2002 37.3 3,372.8 633.2 23.6  
av. 00-02 37  504.8 18.5  15. Sheep and goats 
       
 WT/ACC/UKR/110/Add.2 
Page 178 Product description Year Production 
thousand ton Price 
UAH/ton Price 
US$/ton Value 
in US$38 
(3x5)/1000 Comments 
139 240 341 442 5 6 7 
2000 12,657.9 562.33 103.4 1,308.4  
2001 13,444.2 613.94 114.3 1,536.4  
2002 14,142 541 101.6 1,436.3  
av. 00-02 13,415  106.4 1,427.1  16. Milk 
      
2000 8,808.6 195.8 36.0 317.0  
2001 9,668.2 215.56 40.1 387.9  
2002 11,309 168.1 31.6 356.9  17. Eggs,  pieces 
av. 00-02 9,929  35.9 354.0  
2000 3.4 3,711 682.1 2.3  
2001 3.266 5,123 953.6 3.1  
2002 3.392 3,053 573.2 1.9  18. Wool (as pure fibres) 
av. 00-02 3  736.3 2.5  
2000 0.7 15,697.4 2,885.4 2.0  
2001 0.7 14,469.2 2,693.4 1.9  
2002 0.5 12,500 2,346.7 1.2  19. Hops 
av. 00-02 1  2,641.9 1.7  
2000 8.3 1,205.5 221.6 1.8  
2001 12.3 1,394.8 259.6 3.2  
2002 11.0 1325 248.8 2.7  20. Flax 
av. 00-02 11  243.3 2.6  
 2000    6,032.1  
 2001    7,710.3  
 2002    6,780.7  
Total, main products  av. 00-02    6,841.0  
Other agricultural products 2000    3,941.6  
 2001    4,407.9  
 2002    5,305.9  
 av. 00-02    4,551.8  
Total agricultural products 2000   54,259.0 9,973.7  
 2001   65,100.0 12,118.2  
 2002   64,380.0 12,086.5  
 av. 00-02   61,246.3 11,392.8  
 
 
  WT/ACC/UKR/110/Add.2 
 Page 179 
 
 
 ANNEX 11 
(with reference to Item 169) 
Memorandum on the Protection of Intellectual Property Rights in Ukraine  
(as of  30 April 2003) 
As of this date, Ukraine has put in place the essentials required to assure the safeguarding of 
rights to protection of intellectual property, and mora l and material interests arising in connection with 
various types of intellectual activities: a modern -day normative and legal framework has been 
developed in the field of intellectual property; an d a functional infrastructure has been created 
providing for the implementation of state policies in the field. 
- Improvements to the Normative and Legal Framework       
Legal relations in the field of intellectual property in Ukraine are regulated by certain 
provisions of the Ukrainian Constitution, the norms of  the Civil Code of Ukraine, the Criminal Code 
of Ukraine, the Commercial Procedural Code of Ukraine, the Customs Code of Ukraine, the Code of 
Ukraine on Administrative Violations, the procedur al codes, and norms of certain individual laws. 
Altogether, ten special laws on intellectual prope rty are currently in force in Ukraine.  Our 
country is party to 18 current multilateral internationa l accords in the field.  Legal relations pertaining 
to the protection of intellectual property rights are also regulated by about a hundred normative by-
laws.    
The national normative and legal framework has been undergoing steady development and 
improvement.  The introduction of changes to curren t legislation is required in connection with the 
need for Ukraine to discharge its obligations aris ing from the international agreements to which 
Ukraine is already a party or to which it intends to accede.  These days, Ukraine does its best to make 
possible its accession to WTO and integration into the European Union.  The process implies the need 
to fully harmonize the national legisl ation with TRIPS requirements, and to  introduce effective 
enforcement measures for intellectual property rights protection.     
The last two years were a period of particular ly intensive improvement of the normative and 
legal framework.  During 2001 – 2002, the Criminal Code of Ukraine was adopted, and amendments were introduced to the Code of Ukraine on Administrative Violations.  Norms were added to the two 
Codes specifically intended to reinforce criminal and administrative liability for violations of 
intellectual property rights.  During 2002 – 2003, the Supreme Rada of Ukraine approved the Civil 
Code of Ukraine containing a  separate Book en titled "Intellectual Property Law", as well as the 
Commercial and Customs Codes of Ukraine.  The norm s of  these codes relate d to legal protection of 
intellectual property are fully in comp liance with international standards. 
To deal with the issue of "piracy" in the fiel d of copyright and related rights, the Law of 
Ukraine "On the Specifics of State Regulation of th e Activities of Economic Subjects Related to the 
Production, Export and Import of Discs Intended for Laser-Readable Systems" was adopted in 2002; 
amendments were introduced to the Law of Ukra ine "On Copyright and Related Rights"; fourteen 
resolutions were adopted by the Cabinet of Ministers of Ukraine introducing effective means for prevention of manufacture and distribution of counterfeit products.     
On the whole, during the last two years Ukraine has made significant steps forward in 
improving its national legislation on intellectual prope rty.  During the period, six laws pertaining to 
intellectual property were approved, as well as five laws on accession to essential international WT/ACC/UKR/110/Add.2 
Page 180  
 
 accords in the field and several dozens of by-laws.  In April 2001, the President of Ukraine issued the 
decree "On Measures to Protect Intellectual Property in Ukraine".  In June 2002, the Cabinet of 
Ministers of Ukraine approved the "Concept for the Development of the National System of 
Intellectual Property Protection".  
As of today, five important draft laws on matte rs of intellectual property protection are under 
consideration at the Supreme Rada of Ukraine, namely: 
- "On Introducing Amendments to Certain Legislative Acts of Ukraine on Legal Protection 
of Intellectual Property" (to attain comp liance with the provisions of TRIPS) of 
18 June 2002 No. 1238, approved in first reading on 28 November 2002 and 
recommended for approval in second reading and as a whole by the Supreme Rada of 
Ukraine's Committee for Science and Education; 
- "On Introducing Amendments to the Law of Ukraine "On Distribution of Audiovisual 
Works and Phonogram Samples"" of 3 July 2002 No. 1297, approved in first reading on 
6 February 2003; 
- "On Introducing Amendments to Certain Legislative Acts of Ukraine on Intellectual 
Property" (pertaining to copyright and related rights) of 3 July 2002 No. 1296; 
- "On Introducing Amendments to the Law of Ukraine "On Property" of 26 July 2002 
No. 2030, approved in first reading on 6 March 2003;  
- "On Introducing Amendments to Certain Legislative Acts of Ukraine" (pertaining to 
licensing and supervision over the export and import of discs intended for laser-readable 
systems) of 24 February 2003 No. 3155. 
Upon the adoption by the Supreme Rada of Ukraine of the draft Law "On Introducing 
Amendments to Certain Legislative Acts of Ukrain e on Legal Protection of Intellectual Property" the 
national legislation in the field of intellectual pr operty will be brought in complete compliance with 
TRIPS norms. 
- The Implementation of Organizational and Lega l Mechanisms Intended for the Protection of 
Intellectual Property Rights  
During the last two years, our country implem ented effective measures aimed at assuring 
protection of intellectual property rights fully in line with the internat ional requirements and 
standards.  This is particularly true in respect to fighting violations in the field of copyright and 
related rights.  Following the signing in May 20 00 of the Ukrainian-American Joint Program of 
Action on Combatting Illegal Production of Optical Carriers of Information, combatting piracy 
assumed all characteristics of state policy.  The speedy adoption of the relevant Ukrainian laws, the 
Cabinet of Ministers Resolutions, and other normativ e and legal acts permitted the creation of the 
necessary legal environment and the introduction of effective mechanisms for the implementation of 
legal norms imposing tougher penalties for violations  of intellectual property rights and providing for 
the prevention of manufacture and distribution of counterfeit products. 
One of the significant organizational mechanisms  for the implementation of such legal norms 
is the assurance of supervision over the compliance  with legal norms in the field of intellectual 
property covering the entire Ukrainian territory.   
To achieve this, a joint "Agreement on Cooperation in the Field of Assigning SID Codes of 
Ukraine" has been signed by the State Department  of Intellectual Property, the International 
Federation of Phonogram Industry (IFPI), and Philips company, in accordance to which the State 
Department received a package of SID codes for assignment to Ukrainian manufacturers of discs for 
laser-readable systems.  In 2002, the state control of illicit production and sale of counterfeit products 
in Ukrainian territory was intensified as evidence d by active check-ups of the activities of economic  WT/ACC/UKR/110/Add.2 
 Page 181 
 
 
 subjects in the field of intellectual property, the institution of criminal proceedings, and the 
withdrawal of illicit audio cassettes and discs for laser-readable systems.   
In order to assure systematic state supervision over the compliance of economic subjects with 
the requirements of legislation on intellectual proper ty, a special subdivision of state inspectors for 
matters of intellectual property has been formed with in the State Department of Intellectual Property.  
State inspectors undertake measures to prevent the manufacture and distribution in the Ukrainian 
territory of counterfeit products, primarily of discs fo r laser-readable systems.  They function in all 
Ukrainian regions undertaking both routine and surprise inspections.  Based on the results of an 
inspection, a state inspector may draw up a report of administrative offence.  The work of state 
inspectors for matters of intellectual property is  closely concerted with the activities of law-
enforcement and supervisory bodies: the Ministry of  Internal Affairs, the State Tax Administration, 
and the State Customs Service.        
In 2002, the State Department closely attended to the build-up of the enforcement  
infrastructure.  A state enterprise, the "Intelzakhyst", was created  charged with performing the 
activities related to the improvement of protection provided for the rights to audiovisual works and 
phonograms in accordance with the Laws of Ukra ine "On Copyright and Related Rights" and "On 
Distribution of Audiovisual Works and Phonogram Samples".  The main purpose of the state 
enterprise "Intelzakhyst" has been to back up the pr ocess of issuing control marks and to maintain the 
Integrated Register of control mark recipients.  Albeit the function is not new for the system as a 
whole, the advancement of specializ ation in the field has already yielded tangible results: radically 
new control marks have been introduced, and mark re cipients are being registered.  As of this day, 
over eight million marks have been issued.    
Assuring effective judicial protection of intellect ual property rights is a major issue.  In 
accordance with the President of Ukraine's decree, work has been going on to institute in Ukraine a 
specialized Patents Court.   The Ukrainian Constitution and the La w of Ukraine "On the Judiciary of 
Ukraine" provide the legal framework fo r the existence of such a court.   
The first important step along this path, in our opinion, was the establishment in 2002 of a 
special board of justices of the Supreme Commercial Court of Ukraine charged with considering cases 
on protection of intellectual property rights, and of similar boards within commercial courts of the 
Autonomous Republic of Crimea, of oblasts, and of the cities of Kiev  and Sevastopol, as well as of 
commercial courts of appeal.  Time is ripe for the next step: to create specialized chambers for matters 
of intellectual property at the Supreme Commercial  Court of Ukraine and the Commercial Courts of 
Appeal.   
In addition, the State Department is currently working actively on preparing the ground for 
the creation of a scientific-research institution to  carry out forensic examination of intellectual 
property objects, to be attached to the Ministry of Justice of Ukraine.   
Accounting for the political, economic, and soci al significance of assuring the compliance 
with current legislation in the field of copyright a nd related rights as applie d to software, the Cabinet 
of Ministers of Ukraine approved by its order of  May 2002 a Concept for Legitimizing Software and 
for Combating Illicit Use of Software. 
The Concept provides for: 
- Legalization of software; 
- Combating illegal use of software; and 
- Developing the national software industry.  WT/ACC/UKR/110/Add.2 
Page 182  
 
 Active measures are being taken at present to  implement the provisions of the Concept. 
In compliance with the norms of the Customs Code of Ukraine and in execution of the 
Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Regulations on the Procedure 
for the Registration and Transition across the Cu stoms Border of Ukraine of Goods Containing 
Intellectual Property Objects", an  efficient mechanism was introduced in 2002 for monitoring the 
transition across the customs border of Ukraine of such goods as are covered by intellectual property 
rights.  Such check-ups are carried out in response to a right holder's submission, in conformance with 
TRIPS requirements. 
In accordance with the provisions of the Law of Ukraine "On Protection Against Unfair 
Competition", the administrative protection of inte llectual property rights is provided by the 
Antimonopoly Committee of Ukraine which possesses an extensive network of regional 
representative offices. 
Today, any legal entity or physical person in  Ukraine which is a holder of intellectual 
property rights, is able to receive effective protect ion of those rights, either through administrative or 
in judicial procedures, upon addressing an appeal to the appropriate administrative bodies or to court.  
 Such competent bodies are:   
- The State Department of Intellectual Property; 
- The Antimonopoly Committee of Ukraine; 
- The Ministry of Internal Affairs of Ukraine; 
- The State Customs Service of Ukraine; 
- The State Tax Administration of Ukraine; 
- The State Committee of Ukraine for Matters  of Technical Regulation and Consumer 
Policies; and 
- Courts of general jurisdiction. 
- Statistical Information on Co mbating Offences in the Field of Intellectual Property  
The most wide-spread offences in the fiel d of copyright and related rights are: 
- Manufacture and distribution of counterfeit pr oducts and copies of audiovisual works and 
phonograms; 
- Duplication and distribution of unlicensed computer software; and 
- Manufacture, export, and import of discs for laser-readable systems.   
In the realm of industrial property, the most common offences are manufacture and 
distribution of counterfeit products involving illegal use of marks for goods and services and 
commercial (company) names of well-know n national and foreign producers.  
During 2000 – 2002, the Ministry of Internal  Affairs of Ukraine uncovered the following 
number of violations in the field of intellectual property: 
- In 2000: 4,600; 
- In 2001: 4,500; and 
- In 2002: 4,003.  WT/ACC/UKR/110/Add.2 
 Page 183 
 
 
 Number of prosecutions: 
- In 2000: 190; 
- In 2001: 305; and 
- In 2002: 421. 
Counterfeit products impounded for a total amount of:  
- In 2000: UHR 4.2 million; 
- In 2001: UHR 10 million; and 
- In 2002: UHR 7 million. 
During 2002, the Ministry of Internal Affairs' units carried out inspections at over 12,000 
commercial entities operating in the field of intellect ual property.  Operation was terminated of 111 
"underground" production facilities engaged in manuf acture of counterfeit products, of which 81 
manufactured counterfeit products ag gravated by illegal use of trade marks of known producers.  One 
such "underground" entity duplicated counterfeit CDs with computer software for subsequent 
distribution via an extensive illegal distributor network.  The law-enforcers impounded seven 
computers, 66 information-recording devices, 28 thousand blank CDs, and seven thousand counterfeit 
CDs worth over UHR 350,000.  A criminal case was commenced citing violation of Article 176 of the 
Criminal Code of Ukraine. 
Legal proceedings have been in stituted and investigation is underway in connection with the 
organization of an "undergr ound" facility bottling counterfeit mineral water "Truskavetska". 
Customs bodies impounded the following numbers of discs for laser-readable systems: 
- In 2000: 16,500 units 
- In 2001: 36,000 units 
- In 2002: about 50,000 units. 
Special operations were conducted ("Compact-disc", "Kordon" (Border), "Kanal" (Channel), 
"Kiltse" (Ring), "Potyah" (Train), "Lazerni y Dysk" (Laser disc), and "Intellekt"). 
As of today, a normative-legal framework has been established in Ukraine compliant with 
international standards in the field of intellectua l property, and implementation has been assured of 
mechanisms for the enforcement of legal norms on protection of intellectual property rights, on a par 
with the economically advanced countries. 
A right holder is guaranteed full capability to  exercise his/her right to administrative or 
judicial protection, by means of appealing to the appropriate state executive bodies or to court.    
Ukraine is making every effort to achieve furthe r improvement of relevant legislation and of 
mechanisms for implementation thereof, and to steadily introduce further measures aimed at 
intensifying the fight against violations of intellectual property rights.      WT/ACC/UKR/110/Add.2 
Page 184  
 
 ANNEX 12 
(with reference to Item 173) 
 
The Application of the Free Trade Agreements
 
No. Country Date of coming into 
effect of the 
agreement Exception from the free trade regime (Commodity Coding of the 
Foreign Economic Activity) 
1 Azerbaijan 26 December 1996  
2  Belarus 17 December 1992 Export duty applies to: 
Young live cattle (0102 90100) Heifers (0102 90310) 
Cows (0102 90330) 
Bulls (0102 90350) Oxen (0102 90370) Others (0102 90370) 
Live sheep (0104 10) 
Hides of cattle (4101) 
Hides of sheep (4102) 
Hides of pigs (4103 90000) 
Export and import duty applies to white sugar. 
3 Armenia 18 December 1996  
4 Georgia 6 June 1996  
5 Kazakhstan 19 October 1998 Export duty applies to  
Live cattle (0102 90100) 
Heifers, cows, bulls, oxen and others  
(0102 90310 – 0102 90900) 
Live sheep (0104 10) 
6 Kyrgyzstan 31 December 1997  
7 Moldova 27 May 1996 White sugar (1701 and 1702) 
8 Russian Federation 29 March 1994 Export duty applies to: 
Live cattle, raw hides, sunflowe r seeds and scrap of non-ferrous 
metals. Goods subject to the import duty: 
1701 99 1000, 1704 90 3000, 1704 90 7100, 1704 90 7500, 1704 90 
8100, 1806 31 000, 1806 32 900, 1905 30 1900; Cigars, cigarillos and cigarettes made of tobacco and its substitutes (2402) 
9 Tajikistan 11 July 2002  
10 Turkmenistan 18 December 1996  
11 Uzbekistan 1 January 1996  
12 Estonia 14 March 1996  
13 Latvia 15 January 1997 Goods of commodity groups 1-24 of the Ukrainian Commodity 
Coding of the Foreign Economic Activity. 
14 Lithuania 21 November 1995 0201-02050; 0207 1011-02072390; 02 073911-020 73925; 
02073931-02073947; 02073953-02073983;  
02074110-02074171; 02074210-02074271;  
02074311-02074381; 03053011-03053019; 
03054930-03054990; 03055930; 0401-04022199; 
04022915-0404; 0406; 0405; 0407-0408; 0409; 0410; 0701; 07020090; 07070019; 08081010; 08081091; 08094011; 08101010; 100190-1008 ( крім  1005);  1101-1102; 1107; 1501-1503; 1601-
1602; 1701; 1704; 180620-180690; 190510-19059020; 19059040-
19059090; 2001-2104; 2106; 2201-2202; 2203; 22041011-
22042110; 22042910; 2207-2208; 2402 
15 Former Yugoslav 
Republic of 
Macedonia 18 January 2001 Goods of commodity groups 1-24. The gradual reduction of customs 
tariffs applies to the following tariffs: 
57, 61, 62, 63, 85.28 20710, 85.28 20730, 85.28 20790, 85.28 
20910, 85.28 20990 
 
__________