RESTRICTED
WORLD TRADE WT/ACC/UKR/23/Add.1
21March 1997
ORGANIZATION(97-1182)
Original: English
ACCESSION OFUKRAINE
Additional Questions andReplies
Addendum
TheGovernmental Commission onUkraine 'sAccession totheWTO hasprovided thereplies
reproducedhereundertothequestionssubmittedbydelegationsconcerningdocumentWT/ACC/UKR/23.
_______________
TABLE OFCONTENTS
Sector Question Number Page Number
Technical Barriers toTrade
General Issues 1-10 2
Standards 11-17 4
Testing andCertification 18-25 9
Import Licensing 26-31 11
Customs Valuation 32-33 14
Rules ofOrigin 34-36 14WT/ACC/UKR/23/Add.1
Page2
Technical Barriers toTrade
General issues
Question 1
Please provide anin-depth description ofthelaws mentioned indoc. UKR/23 andthe
rational behind thelaws.
Answer:
Thelegislative baseofmandatory certification system is:
- LawofUkraine "OnForeign Economic Activity" of16April 1996 No.959-XII.
- LawofUkraine "OnProtection ofConsumers ‘Rights" of15December 1993 No.3682-XII
(Articles 16,18);
- LawofUkraine "OnProviding ofSanitary andEpidemical Well-being ofPopulation" of24
February 1994 No.4004-XII (Articles 14,17);
- LawofUkraine "OnLabor Protection" of14October 1992No.2695-II (Articles 24,33,34);
- LawofUkraine"OnEnergy-saving"of01July1994No.74/94-SR(SectionIII,Articles18,19);
- LawofUkraine "OnTraffic" of28January 1993 (Section V,Articles 29,30,31);
- LawofUkraine "OnPesticides andAgrochemicals" of02March 1995No.86/95-SR (Section
II,Articles 4-8);
- LawofUkraine "OnFireSafety" of17December 1993 No.3745-sU (Articles 10,11);
- LawofUkraine "OnProtection ofInformation inAutomatized Systems" of05July1994No.
80/94-SR (Section III,Articles 10,12);
- LawofUkraine "OnPipe-lining Transport" (Article 13);
- LawofUkraine "OnUseofNuclear Energy andRadiation Safety" (Article 28);
- Decree oftheCabinet ofMinisters ofUkraine "OnStandardization andCertification"of 10
May1993 No.46-93 (Section IV).
Requirements related toobligatory certification ofproducts withtheaimofpreventing from
useandsaleofproducts dangerous forlife,health andcitizens 'property andenvironment areincluded
intotheabove-mentioned articles.
Question 2
Please provide alistofalllawsregulating products inUkraine? What istherational behind the
(growing number of)lawsregulating products inUkraine?
Answer:
There isnolawinUkraine which would regulate turnover ofgoods inUkraine. Thatiswhy
thisindex isnotplanned neither bytheGovernment norbytheselfgoverning bodies. Itneither goes
totheeconomic agents, involved intrade activity, nordotheyform itindependently.
Question 3
Please explain howacoherent anduniform interpretation andimplementation ofthese lawsand
regulations isguaranteed, since thelawsseem tohaveaverygeneral content andmuch legislative
work isbeing lefttodifferent authorities.
Answer:
SeeResponse toQuestion No.2.WT/ACC/UKR/23/Add.1
Page3
Question 4
Please provide more information ontheInterdepartmental Council onStandardization, Metrology
andCertification, particularly details onhowit"coordinates work ontheState, regional andlocal
levels.....to ensure conformity anduniformity ofeach region 'saction", andonitsother
responsibilities. CantheInterdepartmental Council review oldstandards orisitconfined towork
onnewstandards?
Answer:
TheInterdepartmentalCouncildoesnotfunction.Basedoninternationalexperience,theNational
Council onQuality andtheNational Council onAccreditation arebeing formed forthispurpose.
Question 5
According toourinformation, anorganization called theUkrainian Consumers Association, has
theright toinspect goods atthepoint ofsale,including theright toseize "non-conform" goods.
What istheroleofthisorganization?
Answer:
According toarticle 25oftheLawofUkraine “:OnProtection ofConsumers ’Rights ”,citizens,
withaviewtoprotect their legitimate rights andfreedoms, shallhavetherighttouniteonavoluntary
basisinthepublic organisations ofconsumers (consumers ’unions). Ukrainian Consumers Association
isoneofsuchorganisations.
Question 6
Under what laws/regulations isitoperating?
Answer:
PublicorganisationsshalloperateinaccordancewiththeLawofUkraine“OnCitizens’Unions”.
Inaddition, Ukrainian Consumers Association operates under theLawofUkraine “OnProtection of
Consumers ’Rights ”.
Question 7
What rights andobligations doesithave, specifically what areitsrights asregards theseizure
of"non-conform" goods andother trade related measures?
Answer:
Article 26oftheLawofUkraine “OnProtection ofConsumers ’Rights ”stipulates therights
ofpublic organisations ofconsumers. Itshallinclude: conducting anexpertise andtesting ofgoods
(works andservice); submission tothestateauthorities andeconomic agents oftheproposal onthe
temporal interruption ofproduction andsaleofgoods (works, services) thatdonotmeettherequirements
determined forquality, ontheinterruption ofproduction, withdrawal ofgoods (works, services) from
thedistribution andsalethatarenotsafeforlife,health, andproperty ofthecitizens etc.
Atthesame timewenotify thatanissueofproviding control overquality andsafety ofgoods
(works andservice), withdrawal ofsubstandard andnon-safe goods fromthesaleshallbe,inaccordance
withtheLawofUkraine “OnProtection ofConsumers ’Rights ”(article 5),within theterms ofreference
ofStatespozhivzakhyst (State Organization onConsumers Protection) anditsbodies.WT/ACC/UKR/23/Add.1
Page4
Question 8
Towhich body cancomplaints beaddressed?
Answer:
Complaints against thedecisions ofthestateexecutive bodies thatprovide protection ofthe
rights ofconsumers andtheirofficers aswellastheactsofsuchpersons, shallbereviewed intheorder
established bythelegislation.
Article40ofchapter11oftheConstitutionofUkraine,adoptedonthe5thsessionoftheSupreme
Rada ofUkraine on28June1996, stipulates: “Anyone hasarighttosubmit individual orcollective
written applications, oraddress personally bodies ofstatepower orlocalself-governing bodies, and
theirofficers andofficials, thatareauthorized toconsider applications andprovide substantiated answers
within thetermestablished bylaw”.
Question 9
Who cancomplain?
Answer:
SeeReply toQuestion No.8.
Question 10
What isthehighest instance ofappeal?
Answer:
SeeReply toQuestion No.8.
Standards
Question 11
Please provide more information on“thegeneral procedure fordeveloping standards, negotiating
them, approving, publishing andtheimplementation ofstandards ”mentioned indocument
WT/ACC/UKR/23, page 2.
Answer:
NationalstandardsoftheStateSystemforstandardizationofUkrainewhichestablishrequirements
related totheorganization ofworks onstandardization, requirements ontheprocedure fordevelopment,
coordination, approval, publication andimplementation ofstandards andtechnical terms havebeen
harmonized withrequirements ofISOandIEC.Inparticular, procedures fordeveloping state(national)
standards aresetintheState Standard ofUkraine DSTU 1.2"State System forStandardization of
Ukraine. Procedure fordeveloping statestandards", which onthewhole iterates Directives ofISO/IEC.
Part1.Procedures onTechnical Work. Main provisions.
TechnicalCommittees(hereinafterrefereedtoasTCs)onstandardizationandotherorganizations
which haverequired scientific andtechnical potential inappropriate fieldareconducted developing
andsystematic revision ofstate(national) standards ofUkraine.
During thepreliminary stage, i.e.stageoforganization fordeveloping standard, TCsconsider
grounded orders andproposals ondeveloping standards.WT/ACC/UKR/23/Add.1
Page5
Onthebasisofconsideration TCsmake decision atitsmeeting onanewworking topic. After
acceptance oftheproposal atopic isincluded intotheTCorthesub-Committee works program as
anewproject andsubmitted tostateplanofstandardization ofUkraine. Thisplanisformed bythe
StateCommitteeofUkraineonStandardization,MetrologyandCertification(DerzhstandardofUkraine).
Theplanofstatestandardization provides control periods ofeachwork'sstageunder theproject:
- developing thefirstedition (wording) oftheproject;
- distribution ofthefirstedition forquestioning;
- distribution ofthefinaledition ofthestandard 'sproject;
- presentation ofthestandard forapproval.
After inclusion ofaproposal ondeveloping standards intotheplanofstatestandardization
theTCappoints aHead oftheproject whoprepares technical taskfordeveloping standards andis
responsible fortheproject development inthefuture. TheHead oftheTCapproves thetechnical task.
Asarule,theworking group iscreated fordirect work under theTCstandard 'sproject. Theworking
group actsunder guidance oftheHead oftheproject.
Theworking group prepares theworking project (thefirstedition) ofthestandard. Distribution
ofthefirstedition ofthestandard forapproval bytheTC‘smembers, other interested parties (including
aconsumer ofproduct andbodies ofstateinspection) isanindication oftheendinpreparatory stage
fordeveloping standard (developing thefirstedition ofthestandard).
Thenextstage indeveloping standards duetotheUkrainian system ofstandardization isthe
stageoffinalediting orthestandard ’sproject. Thisstageincludes astageoftheCommittee andastage
ofquestioning duetoDirectives ofISO/IEC, Part1.Inthecourse ofthisstagefulfilment, organizations
receive theproject ofastandard, prepare aresponse toit,andsendtheirresponse totheTCnotlater
thanonemonth fromthedateofreceiving thestandard ’sproject. TheTCdevelops received responses
andmakes thesummary ofthem. Onthebasis ofremarks andproposals included inthesummary,
theworkinggroupcompletestheprojectofthestandard.TheTCdistributestoallinterestedorganizations
andtheTC‘smembers completed edition ofthestandard ’sproject together withthesummary ofthe
responses.
Members oftheTCandorganizations received thecompleted project ofthestandard submit
theirconclusion during theperiod oftimethatdonotexceed onemonth from thedateofreceiving
thestandard ’sproject. Ifthere areremarks totheproject theTCorganizes theirconsideration and
correction.
TheTCconsiderstheprojectofastandardandmakesadecisiononitssubmissionforratification
aftercorrection ofallremarks andapproval ofthestandard 'sproject. Adecision isregistered through
theprotocol withreference tovoting results foreachmember oftheTC.Thestage isfinished when
thestandard issubmitted toDerzhstandard forapproval.
Derzhstandardorganizesastateexaminationofastandards'project.Famousscientists,specialists,
TCs, scientific andresearch organizations areinvited tothisprocess. Derzhstandard makes adecision
onapproval orreturn ofthestandard 'sproject forcompletion onthebasis ofexamination.
Derzhstandard approves thestandard through theDecree. Thedatewhen thestandard enters
intoforce isdetermined inthetimeofthestandard 'sapproval while taking intoaccount thetimeperiod
required forfulfilment ofpreparatory measures onitsimplementation (analogically torequirements
ofparagraph 2.12, Article 2oftheAgreement onTechnical Barriers toTrade ofGATT/WTO). This
timeperiod is60daysaccording toAnnex 3oftheAgreement onTechnical Barriers toTrade of
GATT/WTO.WT/ACC/UKR/23/Add.1
Page6
Asarule,standards areapproved without limitation ofvalidity period. Anapproved standard
issubject ofstateregistration inDerzhstandard. Information onthework program ispublished every
sixmonths. Approved andregistered standards arepublished inofficial publications ofDerzhstandard
monthly.
ThepublishinghouseofDerzhstandard’sstandardsconductsprintingofthestandardinUkrainian
andappropriate offices ofDerzhstandard (specialized shops ofstandards) distribute them.
Control ofstandards isconducted atleastonceperfiveyears. TheTCorsub-Committee
responsible fordeveloping standards control thestandard. Stages ofthestandard 'srevision arethe
same asstages ofdeveloping anewstandard.
Published national standards canbechanged through publication ofchanges, inparticular to
thestandard developed onthebasisofinternational standards orstandards ofanother country. Changes
arecertainly developed inacaseofchange ofappropriate international ornational standard.
Question 12
Please giveanoverview ofhowwork onharmonization ofnational (basically Russian GOST)
standard withinternational standards isprogressing? Howmany ofthetotally applied standards
inUkraine areinconformity withinternational standards? What sectors have priority inthis
work? What timetable isforeseen?
Answer:
TheRussian standards (GOST R)arenotvalid inUkraine. Thetotalnumber ofstandards
harmonized withinternational standards isabout 5000 andtheyareinforce forUkraine.
1608 ofstate(national) standards DSTU (60% areharmonized withinternational standards)
andabout 20000 oftheformer Soviet Union standards (GOST) (4000 ofthem areharmonized with
international standards) areinforce forUkraine asfor01January 1996.
DevelopmentandimprovementoftheUkrainiannormativebaseinthedirectionofharmonization
withinternational standards requirements areconducted through thefollowing steps:
i. direct implementation ofinternational standards through theUkrainian national standards;
ii. development ofnewUkrainian national standards harmonized withinternational standards to
replaceGOSToftheformerSovietUnionisconductedinaccordancewithplansoftheUkrainian
statestandardization. Derzhstandard forms andprepares these plans duetoproposals ofTC,
industry’sministriesanddepartmentstakingintoaccounttaskswhichUkrainefacesinconnection
withentering theWTO;
iii. implementation ofnewinterstate standards oftheCISMembers (tochange oldGOSTs ofthe
USSR) harmonized with international standards isconducted bytheEuro-Asiatic Council on
Standardization (EASC). ISOhasrecognized thisCouncil asaregional organization on
standardization for12countries oftheCIS.11ofthem havesubmitted application forms on
entering WTO. Thisimplementation isconducted duetoplans ofinterstate standardization
ondeveloping standards. They willfunction ontheterritory oftheCIS(EASC adopted 429
interstate standards in1996. 122ofthem weredeveloped byUkraine). Themajority ofthem
were harmonized withinternational standards.
Inthecourse ofworks planing ondevelopment oftheUkrainian national normative basepriority
isgiven todeveloping andimplementing standards which include requirements tooperational
characteristics ofproducts instead ofconstruction andtostandards onquality systems.WT/ACC/UKR/23/Add.1
Page7
Question 13
Please explain therational behind using standards instead ofregulations asthemain regulatory
instrument? HowwillUkraine work tochange from mandatory standards tovoluntary standards,
inorder tocomply withinternational practices? Have relevant authorities begun thelegislative
change-over from mandatory standards toregulations? What timetable isforeseen?
Answer:
There arenoobligatory standards inUkraine according totheArticle 4oftheAgreement on
Technical Barriers toTrade ofWTO. Standards which areinforce inUkraine include obligatory and
recommended requirements asprovided bylegislation. Forthetimebeing Ukraine hastaken adecision
toharmonize thelegislation (during 1996 and1997) inapartthatregulates protection oflife,health,
citizens 'property andsafety ofenvironment inaccordance withdirectives anddecision oftheEuropean
Union (according totheArticle 51oftheAgreement onPartnership andCooperation between Ukraine
andEU).
Question 14
Please provide information onhowwork onthesetting upoftheWTO required facilities (i.e.
inquiry points) isprogressing. What timetable isforeseen?
Answer:
Currently technical possibilities oftheNational Informative Center onStandardization and
Certification ofInternational Informative Net(NIC ISONET) allow input anduseofinformation on
thefollowing:
- bibliographical database ofnational normative documents ofUkraine inthefield of
standardization, metrology andcertification, classified duetoDK004-95 "Classifier of
Normative Documents" andharmonized withInternational Classification ofStandards (ICS);
- electronic (inUkrainian) bibliographical catalogue ofinternational andnational standards of
other countries;
- automatized database oncertification (inUkrainian).
Question 15
When willUkraine beabletofulfil alltheconditions intheCode ofGood practice forthe
preparation, adoption andapplication ofstandards? What preparatory work isbeing done in
Ukraine inorder tobeabletofulfil these requirements?
Answer:
Ukraine meets allrequirement setintheCode ofGood Practice. Inparticular, ittakesanactive
partindeveloping international standards within international organizations onstandardization ISO
andIEC,andtakespartinInternational Informative NetISONET through thefirsttypeofparticipation,
etc.
Question 16
Indocument WT/ACC/UKR/23 Ukraine states that“Registered standards arelisted intheState
register ”What authority isresponsible forthisregister? How doesitoperate? Who hasaccess
totheinformation contained therein? Hasaneconomic operator theright toaccess? Arethere
anyfeesconnected withrequests forextracts from theregister?WT/ACC/UKR/23/Add.1
Page8
Answer:
TheDecree oftheCabinet ofMinisters ofUkraine "OnStandardization andCertification" has
putthefunction ofstateregistration forUkrainian national standards, industry 'sstandards, engineering,
scientific andtechnical associations under responsibility ofDerzhstandard.
Information onnormative documents registered byDerzhstandard ispublished every month
inofficial publication ofDerzhstandard "Standards. Informative Index" (ISSN 0205.5600) andevery
year(asforJanuary thefirstofcurrent year) inofficial Catalogue ofnormative documents ofthe
Ukrainian Derzhstandard (ISSN 0208.1539).
Informationontechnicalconditionsisgiveninthedirectory"Productsturnedoutduetotechnical
conditions ofUkraine". Thisdirectory ispublished 4times ayear.
Theabove-mentioned publications aredistributed through pre-payment, arefreely soldthrough
shops ofstandards andareavailable foranyenterprise, organization andcommon entrepreneur.
Specific charges arenotprovided forreceiving ofinformation onnormative documents passed
through stateregistration.
Question 17
Ukraine states indocument WT/ACC/UKR/23 that"specific standards documents may be
purchased"fromDerzhstandart.Whatistheadministrativeprocedureconnectedwiththispurchase
andwhat feesareapplied?
Answer:
National standards ofUkraine, official publications ofDerzhstandard andother publications
inthefield ofstandardization, metrology andcertification aredistributed byorganizations of
Derzhstandard. They areasfollows:
- shopofstandards:
Ukraine, Kyiv, 252073, Kyiv-73, Frunze Street 152
Tel.(044) 435-42-70
- shopofstandards:
Ukraine, Kharkiv, 310164, Kharkiv-164, Lenin Avenue 66
Tel.(0572) 33-35-00
- Ukrainian scientific andresearch institute ofstandardization, certification and
information:
Ukraine, Kyiv, 252006, Gorkogo Street 174
Tel.(fax) (044) 268-70-60
Normativedocumentationisdistributedthroughorderformswhichperiodically(oncepermonth)
arepublished byDerzhstandard ofUkraine andisavailable forsale.
CostoftheUkrainian national standards publications andother publications ofDerzhstandard
iscalculated while taking intoaccount thesizeofpublications (number ofpages) andisthesame for
Ukrainian andforeign customers (excluding realcostofdelivery). Atthesame timeadditional charges
arenotlevied. Thispractice meets paragraph PofAnnex 3oftheAgreement onTrade Barriers to
Trade ofGATT/WTO.WT/ACC/UKR/23/Add.1
Page9
Testing andCertification
Question 18
Please provide atable overapplied certification procedures, theproducts these procedures apply
toandthereasons forapplying them.
Answer:
Products certification procedures areexecuted byathird party onthebasis ofrules and
regulations fixedbyinternational andEuropean standards withdueregard totherequirements ofArticle
5oftheWTO Agreement onTechnical Barriers inTrade. Thelistofproduce subject tocompulsory
certificationinUkrainecomprises32groups.Thebasicreasonforapplicationofcertificationprocedures
aretherequirements oftheeffective lawaimed attheprevention ofsalesofproduce which isdangerous
forindividuals ’life,health andproperty, andthenatural environment. Incompliance withthePreamble
andArticle 2oftheGATT/WTO Agreement onTechnical Barriers inTrade, thisrightisvested in
eachcountry membering GATT/WTO.
Question 19
Pleasecommentonhowthefollowingelementsofthepracticalimplementation,asreceivedbyWestern
economic operators, ofitscertification procedure comply withtherequirements ofi.a.MFN and
national treatment intheTBT Agreement:
- lackofclarity asinwhich aretheauthorized certification centers
- lackofclarity onthevalidity ofcertificates
- lackofclarity ofthecosts ofcertification
- lackofclarity astothetimeneeded forcertification
- lackofclarity ofthegrounds fortesting (i.a.unclear "ecological testing")
- differentiated treatment ofdomestic producers andforeign producers, withmore stringent
demands formandatory certification andcompliance withmandatory standards puton
foreign producers.
Answer:
Thenational regime, incompliance withtherequirements ofArticle 5oftheWTO Agreement
onTechnical Barriers, isprovided through:
- authorization ofcertification bodies through accreditation within theUkrSEPRO system for
acertain nomenclature ofproduce;
- fixing oftheperiod ofvalidity ofcertificates onthebasistheresults ofcertification procedures
depending upon themethod chosen;
- fixing ofcostandlabor-intensiveness ofcertification procedures incompliance withtheRules
forDetermination ofCostofCertification Services;
- fixing oftherequirement thatproduce mustcomply withtheprovisions ofeffective normative
documents ofUkraine asregards safety forUkrainian individuals ’lifeandhealth;
- thesingle approach tonational andforeign producers, unity ofrequirements andrules of
certification ofproduce fornational andforeign producers.
Question 20
Please provide information onanywork being done tocreate anational accreditation system
harmonized withinternational systems. What system isforeseen andwhat timetable willapply?WT/ACC/UKR/23/Add.1
Page10
Answer:
Incompliance withtheOrder ofthePresident ofUkraine No.375/96 of24May1996, where
theRegulations ontheState Committee forStandardization areapproved, theNational Council for
Accreditation shallbecreated, anditwilldetermine policies inthissphere. TheCouncil willcomprise
representative ofallconcerned ministries, bodies andpublic organizations. Accreditation requirements
areharmonized withtheinternational ones.
Question 21
Under thecurrent law, accreditation, certification andmarket surveillance allareunder
Derzhstandart 'sresponsibility. According tointernational rules aseparation ofthese functions
isrequired. What measures arebeing taken tocomply withthisrequirement?
Answer:
Supervision overthemarket inUkraine isexercised bybodies oftheState Committee for
Protection ofConsumers ’Rights. Thecreation oftheNational Council forAccreditation willprovide
fordistribution ofaccreditation andcertification functions. TheStateCommittee forStandardization
doesnotexercise certification itself, itisdonebyaccredited certification bodies.
Question 22
What work isbeing done withtheaimofreducing theexcessive scope ofmandatory certification
andenforcing theuseofvoluntary certification?
Answer:
Theformation ofthelistofproduce subject tocompulsory certification iscarried onin
compliance withArticles 2oftheGATT/WTO Agreement onTechnical Barriers, andinconformity
withtheeffectivelaw.Thenationalcertificationsystem,UkrSEPRO,providesforvoluntarycertification,
which ismade atrequest ofanapplicant byaccredited certification bodies.
Question 23
What work isbeing done withtheaimofintroducing aquality assurance system? Isasolution
sought totheproblem ofthedefacto requirement ofcertification ofeachseparate consignment,
which isaresult ofthelackofaquality assurance system?
Answer:
DSTUs forquality control systems onthebasis ofinternational standards ISO,series 9000
and10000, were developed andintroduced. Procedures forcertification ofserial quality control
equipment, including examination andattestation ofmanufacturing facilities, certification ofquality
systems andtechnical supervision, areforeseen. Fourbodies forcertification ofquality control systems
havebeenaccredited andareoperating. Certification procedure isdetermined withdueregard toan
applicant ’swish.
Question 24
IsUkraine planning toremove there-certification requirement foranymodification ofaproduct,
even ifthemodification doesnotaffect compliance withstandards? Ifnot,please provide an
explanation ofthereasons forthemaintenance ofthisrequirement?WT/ACC/UKR/23/Add.1
Page11
Answer:
Ifitisproved thatamodification willnotinfluence thequality, therepeated certification is
notrequired. Inaddition, incompliance withArticle 6oftheGATT/WTO Agreement onTechnical
Barriers inTrade, Ukraine hasproposed tomore than40countries oftheworld, including theEU
countries,toenterintobilateralagreementsonmutualrecognitionoftheresultsofcomplianceassessment
procedures, which willconsiderably simplify certification procedures andeliminate thenecessity of
repeated certification.
Question 25
Could Ukraine explain thereason fortherapid introduction ofmandatory certification without
adequate timetocomplete thecertification process (in1996mandatory certification wasintroduced
forfertilizer withimmediate effect eventhough thenormal procedure takes fiveyears), which
inpractice leads toatemporary exclusion from themarket forthatproduct? Istheintroduction
ofmandatory certification foreseen inanyother sectors/for other products?
Answer:
Nomandatory certification forfertilizers hasbeenintroduced inUkraine. Wedonotknow
what document saysthattheprocess ofimplementation ofmandatory certification should takefive
years. Incompliance withClause 5.6oftheGATT/WTO Agreement onTechnical Barriers, information
about introduction ofcompulsory notification inUkraine ispublished assoonasitisavailable, and
through theMinistry ofForeign Economic Relations andTrade itiscommunicated toother countries.
TheState Committee forStandardization gives information onchanges andamendments totheList
tonational accreditation bodies ofthose countries, withwhich, incompliance withArticle 6ofthe
GATT/WTO Agreement, agreements onmutual recognition ofcertification results havebeensigned.
Further expansion ofthelistofproduce willbemade incompliance withtherequirements
oftheeffectivelaw.During1996-1997itisplannedtointroducechangesandamendmentstotheeffective
law,which willcover protection oflife,health andproperty ofindividuals, aswellasenvironmental
protection, forthepurpose ofharmonizing theeffective lawwithinstructions andresolutions ofthe
European Union.
Import Licensing
Question 26
Wewelcome thestatement made byUkraine thatitwillconform withtheWTO Agreement on
Import Licensing. Please assess whether, andifsowhat, changes toExisting legislation willbe
requiredtomeetthiscommitment.Howmuchtimewillberequiredtomakeanynecessarychanges?
Answer:
SeeReplies toQuestions No.29,30,31
Question 27
Alicense canberefused onthegrounds thatagoodisimported 'athigher prices thanworld prices '
(Article 2.1oftheResolution 134-a "OnApproval oftheRegulation ontheProcedure forImport
Licensing in1996 of26February 1996). Please justify thisbasis forrefusal ofalicense inthe
lightofUkraine 'sstatement inWT/ACC/UKR/23 thatlicensing exists forthesolepurposes "of
ensuring thattechnical, pharmacological, sanitary, phytosanitary, veterinary andecological
regulations ...areadhered to".When doesUkraine intend toeliminate thisprovision?WT/ACC/UKR/23/Add.1
Page12
Answer:
Yes,licensing isimplemented withthepurpose ofensuring thattechnical, pharmacological,
sanitary,phytosanitary,veterinaryandecologicalregulationsareadheredto.Accordingtotheprocedures
ofissuing alicense, prices shallbeexamined aswell. According tothemethodology ofestablishing
andusage ofindicative prices, approved bytheResolution oftheMFERT ofUkraine No.506 of
8August 1996, deviations ofcontract prices compared totheindicative prices arepossible andcan
becaused byspecific features ofcontract, payment terms andconditions, different quality standards,
other factors having material influence ontheterms offulfilment thecontract.
Order ofthePresident ofUkraine of10February 1996No.124/96 “OnMeasures onImproving
Pricing Policy inForeign Trade ”implies, thatMFERT ofUkraine canestablish indicative prices for
thefollowing categories ofgoods:
- exports ofwhich aresubject toanti-dumping measures oranti-dumping investigations or
procedures inUkraine orabroad;
- goods subject tospecial import procedures according totheArticle 19oftheLawofUkraine
"OnForeign Economic Activity";
- exports ofwhich aresubject tolicenses orquotas;
- which areexported according totheprocedures provided forintheArticle 20oftheLawof
Ukraine "OnForeign Economic Activity";
- inother cases, subject tointernational obligations ofUkraine.
Question 28
Resolution 134-a stipulates thatlicense applications arechecked bythefollowing departments
intheMinistry ofForeign Economic Relations andTrade ofUkraine:
- "Prices Department" (tocheck thecorrespondence ofprices tothegeneral current price
level);
- "Contracts Department" (tocheck ifimport contracts arcproperly made);
- "Export-Import Control Department" (tocheck whether nosanctions arcinplace against
theforeign exporter);
- "Exchange andCredit Department" (tocheck thepayment terms).
Please explain whyallthese controls arenecessary inthelightofUkraine 'sstatement thatlicensing
exists forthesolepurposes "ofensuring thattechnical, pharmacological, sanitary, phytosanitary,
veterinary andecological regulations ...areadhered to".
Answer:
Procedures forconsideration ofapplications intheMFERT ofUkraine, provided forinthe
Regulations onimports licensing procedures in1996 andapproved bytheResolution ofMFERT of
Ukraine of26February 1996No.134-a isaninternal ministerial procedure forissuing imports licenses
anddoesnotcontradict totheItem5(e)Article 3oftheAgreement onImport Licensing Procedures
oftheUruguay Round.
Question 29
Itisnoted thatthegovernment charges forgranting theimport license is0.1percent ofthecontract
price (response toquestion 9).Thisdoesnotseem toreflect theprinciple ofcostrecovery, and
therefore seems toruncounter toArticle VIIIoftheGATT 1994. Please indicate thetimetable
forremedying thissituation.
Answer:
InordertoadjustthelegislationofUkraineonimportlicensingtotheGATT/WTOrequirements,
theResolution oftheCabinet ofMinisters ofUkraine of2August 1996 No.893 “OntheAmount ofWT/ACC/UKR/23/Add.1
Page13
StateFeeforIssuing Import Licenses ”provides forthestatefeeforissuing import licenses attheamount
of15untaxable minimal personal income.
Question 30
What aretheprocedures inUkraine toapply forandobtain animport license? (Question 1,page 6).
Answer:
ImportlicensinginUkraineisdefinedasanadministrativeprocedure,whichisusedtoimplement
thesystem ofimport licensing, provides forfiling ofapplications andother necessary documents to
theappropriate stateauthority asaprecondition forimports ofgoods tothecustoms territory ofimporter,
which doesnotcontradict totheArticle 1oftheAgreement onImport Licensing Procedures ofthe
Uruguay Round.
According totheLawofUkraine “OnForeign Economic Activity ”,theResolution ofMFERT
ofUkraine of26February 1996 No.134-a “OntheApproval ofRegulations ontheProcedures for
Export Licensing in1996 andRegulations ontheProcedures forImport Licensing in1996”licenses
areissued onthebasisofapplications ofbusiness entities, completed according totheform, approved
andpublished bytheMFERT ofUkraine.
Thefollowing documents areattached totheapplication:
- anapplication letter forissuing alicense withguarantees regarding payment ofthestate
registration fee;
- aduplicate ofthecontract withspecifications, dulycertified byofficials ofthebusiness entity;
- aduplicate ofthecertificate ofstateregistration, dulycertified byofficials oftheenterprise;
- anapproval oftheappropriate stateauthorities according totheAnnex 2oftheResolution
oftheCabinet ofMinisters ofUkraine of10January 1996No.41 “TheListofGoods, Exports
andImports ofwhich areSubject toQuotas andLicenses in1996”;
- agoods expertise act,issued bytheChamber ofTrade andCommerce oritsregional affiliate,
withgoods CNFEAcode.
Theapplication dayisthedayofregistration ofapplication intheMFERT ofUkraine orin
theinstitutions, authorized byit,which isapproved byanappropriate record inaregistration book.
Documents, concerning issuing alicense, areconsidered bytheMFERT ofUkraine orbythe
other authorized body within 15daysfrom thedateofapplication registration.
Question 31
(Question 6(IX) -page9).Theresponse, which refers toReply 1,which provides abriefdescription
ofeach licensing system, doesnotindicate iflicenses areissued automatically. Could Ukraine
state whether licenses areissued automatically?
Import licensing inUkraine doesnothavequantitative restrictions, thusitisnotsubject toquotas,
isnotautomatic, which doesnotcontradict totheArticle 3oftheAgreement onImport Licensing
Procedure oftheUruguay Round, because itdoesnotapply anyquantitative restrictions toany
country oftheworld. Thus, licenses areissued automatically.
Answer:
Import licensing inUkraine isconducted according tothelistapproved bytheResolution of
theCabinet ofMinisters ofUkraine of26February 1996 No.41, which confirms statecontrol oftheWT/ACC/UKR/23/Add.1
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standards oftheAgreement onApplication ofSanitary andPhytosanitary Measures oftheUruguay
Round, andalsooftheArticle 11oftheGeneral Agreement onTariffs andTrade -Balance-of-Payments
Restrictions- (Article 1-in“order tosupport itsforeign economic status andtostabilize itsbalance
ofpayments hastheopportunity tolimitthevolume orvalue ofthegoods, allowed forimports ”..,
andwhich corresponds tothelegislation ofUkraine (theLawofUkraine “OnForeign Economic
Activity ”)andtaking intoconsideration thefactthatUkraine currently receives financial assistance
from international organizations.
Customs Valuation
Question 32
(Questions 2to4).Theanswers refer tothefirstreply, which indicates thattheLawshall be
developed in1996. Have thevarious provisions asrequested inquestions 2to4beenimplemented?
Ifnot,when willtheybeimplemented?
Answer:
Astothequestion onCustoms Valuation wenotify thefollowing: regulation oftheAgreement
onCustoms Valuation isputintothebasis oftheChapter “Customs Value oftheGoods ”.Methods
ofdefinition oftheCustoms Value oftheGoods oftheCustoms Code ofUkraine.
Question 33
(Questions 11and12).Itappears thatArticle 13and16oftheCustoms Valuation Agreement
willnotbemetunder current Ukraine law. Could Ukraine provide more information onits
intentions.
Answer:
-
Rules ofOrigin
Question 34
Thesecond paragraph ofthepaper "Rules ofOrigin ofUkraine" (WT/ACC/UKR/23) which
indicates when processing inthecountry ofexport isconsidered tobesufficient toconfer origin
totheexported good issomewhat confusing. Specifically, thesecond itemstates: "thepercentage
ofadded value inthecostofthegoodshallnotexceed 50percent". Isthisanerror intranslation?
Normally, onewould assume thattheprocessing ofimported materials should exceed 50percent
inorder forthegood tooriginate inthecountry where theprocessing tookplace (i.e., should
"not" bedeleted from thetext?).
Answer:
Indeed, itisamistake oftranslation. Thecorrect variant is“added value amounts notlessthan
50%ofthegoods ’value”
Question 35
Assuming thatthevalue added tobeincurred inthecountry ofexport is50percent, howisthis
costcalculated? Isitbased onthedifference ofthecustoms value oftheimported material and
thecustoms value ofthefinished exported good? Or,isitbased onmanufacturing costs?WT/ACC/UKR/23/Add.1
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Answer:
Calculation oftheadded value isbased ontheproduction costs.
Question 36
Thepaper alsonotes that,forimports under theprivileged tariffs (MFN), nocertificate oforigin
isrequired andthecountry oforigin isbased onshipping documents andmarking. Does this
mean thatUkraine requires allimports tobemarked withtheir country oforigin? What are
thespecific details ofUkraine 'smarking regime?
Answer:
Forthepurposes ofthepreferential tariff import country oforigin isdetermined bythe
transportation documents, markings ifrules ofpurchase anddirect shipment areobserved. Ifthe
certificate isnotavailable andthecountry oforigin cannotbedetermined (markings, transportation
documents arenotavailable) thefulldutyrateisapplied.
AsforthemarkinginUkraine,accordingtotheResolutionoftheCabinetofMinistersofUkraine
of29May1996 starting from 1January 1997 goods produced orsoldinUkraine aretobemarked
bytheeconomic agents withFANstroke codes according totheProvisions onStroke Coding ofGoods.