RESTRICTED
WORLD TRADE WT/ACC/RUS/13/Add.1
14October 1996
ORGANIZATION(96-4252)
Original: English
ACCESSION OFTHE RUSSIAN FEDERATION
Additional Questions andReplies
ThePermanent Mission oftheRussian Federation hassubmitted replies toquestions raised
afterthemeeting oftheWorking Party heldon30-31May1996, withtherequest thattheybecirculated
totheMembers oftheWorking Party. Thequestions andreplies arereproduced hereunder.
_______________
TRADE INSERVICES
Question 87
Re.Question 192(WT/ACC/RUS/9) Wehavenoted thereply that“thememorandum onservices
(WT/ACC/RUS/6) cannot betreated asalegal text”.Nonetheless, weareoftheview that
“definitions ”ofasuchterms as“foreign company ”,“State company ”,“non-State company ”
etc.arenecessary tounderstand thecontent ofthedocument. Thus, weasktheRussian authorities
toaddthiselement tothecurrent document.
AstheWorking Party proceeds further withitsexamination ofRussia 'sregime affecting trade
inservices, itwillbeimportant forMembers toreceive details onanypowers being exercised
atsub-federal levels which affect thisareaoftrade. Wewould therefore request thatanyresponses
concerning service sectors should specify whether ornotthisconsideration isrelevant; and, if
so,should include appropriate detailed information.
Answer
Sincelawsandregulationsinforcemaydefinenotionsof“foreigncompany”,“Statecompany",
“non-State company ”,etc.inaspecific waydepending onthefunction oftheparticular law,additional
“informal ”definitions maybemisleading. With thatunderstanding, wemaydescribe themeaning
ofthese notions usually given ingeneral discussions.
"Foreign-ownedcompanies"areusuallyunderstoodtomeanbusinessentitiesestablishedpursuant
tothelawsofforeign jurisdictions, including those which havetheirrepresentative offices orbranches
intheRussian Federation, orbusiness companies dulyregistered asRussian legalentities, buthaving
aforeign founder orshareholder whoowns acontrolling stake intherespective venture (inaccordance
withRussian taxlegislation).
Thenotion of"State-owned companies" anditsmore general equivalent, "public enterprises",
cover boththose legalentities which arewholly-owned bytheState(federal authorities orauthorities
ofaterritorial subject oftheRussian Federation), andprivatized enterprises intheformofjointstockWT/ACC/RUS/13/Add.1
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companies withacontrolling block ofshares heldbytheState(under theCivil Code, andlegislation
onprivatization).
"Non-public enterprises" areusually understood tomean anyRussian business entities which
donotfallunder thedefinition of"public enterprises."
Question 88
Re.Question 196(WT/ACC/RUS/9) Which arethebodies responsible, atregional level, for
establishing thequotas andtheprofessional composition oftheforeign labour force attracted to
theRussian Federation? What arethecriteria usedforthispurpose?
With regard toquotas fortheemployment offoreign nationals, isthere anyplanforRussia to
review thequota system, oreventoabolish quotas asawhole?
Dothese quotas alsoapply inthecasewhere aforeign company establishes abranch ora
subsidiary office inRussia?
Inresponding toquestion 196,itisstated thattheRussian Federal Migration Service approved
quotas fortheemployment offoreign nationals, based onproposals submitted bysub-federal
authorities. Does theRussian Federal Migration Service useanyother information orcriteria
toapprove quota levels? How isinformation onapproved quota levels provided tothepublic?
Candecisions oftheFederal Migration Service beappealed? Arequotas filled onafirst-come,
first-served basis?
Answer
Nooverall quotas arepre-established either forthewhole oftheRussian Federation orfor
anyofitsregional governments asfarasthenumber andprofessional composition offoreign employees
areconcerned.
Inkeeping withtheRegulations ontheHiring andUseofForeign Employees intheRussian
Federation, asapproved byRussian Presidential Decree No.2146, dated 16December 1993, a
prospective employer istosubmit thefollowing documents totheFederal Migration Service:
- anapplication indicating, inparticular, thenumber offoreign employees wanted, bothin
aggregate andbyprofession;
- aproposal (conclusion) from theappropriate executive agency oftheRussian Federation 's
territorial subject where theforeign nationals aretobeemployed, which mustsubstantiate the
advisability oftheemployment anduseofforeign personnel bytherespective employer; and
- drafts ofemployment contracts, orother documents confirming theprior agreement withthe
foreign nationals inquestion orwithforeign partners ontheintent toemploy therespective
foreigners andonconditions oftheiremployment.
When issuing anauthorization toaspecific employer tohireforeign personnel, theFederal
Migration Service (oritsregional branch) may, based onrecommendations from theadministration
ofthecorresponding regional government oftheRussian Federation, setalimitonthenumber offoreign
nationals whomaybeemployed, bothinaggregate andbyprofession.WT/ACC/RUS/13/Add.1
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Applications fromemployers areconsidered ona"firstcome firstserved" basis. Authorizations
toemploy foreigners aregranted, asarule,foraperiod ofuptooneyear.
TheFederal Migration Service isrequired todecide toissue ortorefuse toissue suchan
authorization within 30daysafterthedateonwhich anemployer filedtherequisite documents. Any
decision taken bytheFederal Migration Service maybechallenged incourt.
Question 89
Re.Question 198(WT/ACC/RUS/9) Intheanswer toquestion 198,itisstated thatacertain
payment intheamount ofminimal monthly wages established bythelegislation ischarged from
theemployer fortheextension oftheterm ofthepermit foreachforeign worker. What arethe
levels ofthese feesfortheinitial andadditional terms? Why arethefeesdifferent? Does the
phrase "minimal monthly wages" refer toaflatrateforeachworker, orarepayments setata
percentage ofmonthly wages? Areallworkers assessed payments based onthesame rate?
Theresponse toquestion 198alsostates thatthefeesfortherenewal ofwork permits areintended
tocompensate local administrations fortheusebyforeign employees oflocal infrastructure,
municipal transport, social services andculture which arefinanced fromlocalbudgets. Areforeign
workers required topayanyother typeofspecial feeortaxtooffset thecosts oftheconsumption
ofgovernment services?
Answer
Eachtimeanemployer isgranted anauthorization toemploy foreign nationals orhasitrenewed,
heistopayaone-time feeforeachforeign employee inanamount equal totheminimum monthly
wage established bylegislation oftheRussian Federation. Such aminimum monthly statutory wage
isfixed inRussia forallemployers inrelation toanyandallemployees, andistheabsolute minimum
limitforanyandallwages payable inthecountry. Thisindicator isusedastheunitofaccount during
thecalculation ofsome charges, fines, andother payments. Since theamount oftheminimum monthly
statutory wage overrecent years hasbeenrepeatedly increased, sohastheauthorization fee.
Foreign employees arenotrequired topayanyspecial social welfare duestolocalauthorities.
Question 90
Re.Question 200(WT/ACC/RUS/9) Isemployment offoreign nationals from countries which
arenottheparty totheintergovernmental agreement onreciprocal employment impeded due
tothequota system fortheemployment offoreign nationals?
Answer
No,itisnot(seeAnswer 88herein). Existing legislation doesnotprovide foranyrestrictions
ontheemployment offoreign nationals depending ontheircountry oforigin. Under intergovernmental
agreements, quotas maybesetwhereby employment mustbeprovided toacertain number ofpeople
regardless ofthesituation anddevelopments onthelabour market ofthehostcountry.
Question 91
Re.Questions 200,286,288and375(WT/ACC/RUS/9) WenotethattheRussian Federation
hasinplace anumber ofreciprocal arrangements, including bilateral agreements onthereciprocal
employmentofcitizensofvariouscountries(Q.200,page77),reciprocitymeasuresfortheinsuranceWT/ACC/RUS/13/Add.1
Page4
industry (Q.286, page94),andreciprocity measures forthelicensing offoreign andjointventure
banks (Q.288, page 94). Could theRussian Federation provide details ofanyother reciprocal
arrangements thataremaintained intheservices industries andindicate whether itisprepared
toremove these reciprocity requirements intheaccession negotiations? Inthiscontext, wewould
alsoliketoknow whether anyofthebilateral economic, technical cooperation andtrade agreements
signed byRussia cover trade inservices andwhether anyofthese agreements confer preferred
orreciprocal supplier status oncompanies from signatory countries (Q375)?
Answer
Theanswer tothisquestion willbegiven induecourse intheinitial offer ofaschedule of
exemptions from theMost Favoured Nation obligations inaccordance withArticle IIofGATS and
theAnnex onArticle IIexemptions. SeealsoAnswer 111herein.
Question 92
Re.Questions 204,214,and242(WT/ACC/RUS/9) AstheSwiss delegation raised these questions
attheworking party 'slastmeeting, wewould begrateful iftheRussian delegation would letus
have thecorresponding replies assoonaspossible.
Answer
Answers toquestions 204and214weresubmitted intheThird Working Party inthedocument
(WT/ACC/RUS/9/Add.2). TheAnswer toQuestion 242follows.
Inorder toprovide services intheareaofurban planning andlandscape architecture itis
necessary toobtain alicence inaccordance withtheprocedures determined forallother types of
architectural activity.
Services intheareaofarchitectural activities intheRussian Federation aresubject tolicensing
inaccordance withFederal LawNo.169-FZ “OnArchitectural Activity intheRussian Federation ”
dated 17November 1995, andRegulations oftheGovernment oftheRussian Federation No.929“On
theAdoption oftheProvision onCreative Architectural Activity anditsLicensing intheRussian
Federation ”dated 22November 1993.
Licences areissued toindividuals only. Licensing requirements withrespect toalltypes of
architectural activities arethesame:
- Russian Federation citizenship;
- university degree inarchitecture;
- working experience intheareanolessthan2years;
- knowledge ofrequirements withrespect toconstruction anddesign intheRussian
Federation.
Alegal entity headed byanindividual possessing alicence mayrender services inthearea
ofarchitecture without obtaining anadditional licence, andmayemploy non-citizens.
Question 93
Re.Questions 204,242,248,250,252and254(WT/ACC/RUS/9) WenotethatRussia hasprovided
additional information onlicensing requirements foranumber ofsectors (WT/ACC/RUS/9).
However, there remain anumber ofsectors forwhich licensing requirements have notbeenWT/ACC/RUS/13/Add.1
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specified. These include urban planning andlandscape architecture (Q.242, page86),realestate,
rental andleasing services without operators, advertising services andmining industry services
(Q.248, Q.250, Q.252, Q.254 page87).Wehavealsopreviously submitted questions regarding
thecriteria usedforlicensing suppliers inthecommunications, audiovisual andtransportation
sectors. Wewould alsoliketoknow forwhich sectors numerical quotas exist onthenumber
oflicences issued toforeign companies (Q.204, page 78).
Answer
Asnoted, theanswers toquestions 204,248,250,252,and254were previously submitted
inWT/ACC/RUS/9/Add.2. Regarding theadditional sectors:
1. Oncityplanning andlandscape architecture services, seeanswer 92herein.
2. Onrealty-related services, seeanswers 248and249inWT/ACC/RUS/9/Add.2.
3. Onleasing services, seetheanswer 250inWT/ACC/RUS/9/Add.2.
4. Onadvertising services, thelicensing ofadvertisers stillisregulated asdescribed inanswer 252
inWT/ACC/RUS/9/Add.2.
5. Onmining services, seeanswer 254inWT/ACC/RUS/9/Add.2.
6. Oncommunications services: theprovision ofcommunications services ontheterritory ofthe
Russian Federation isgoverned bytheFederal lawFZ-15 "OnCommunications", dated
22February 1995. Itestablishes thattheactivities ofindividuals andlegalentities which are
related totheprovision ofcommunications services maybeundertaken onthebasisofaproper,
dulyexecuted anddulyobtained licence. Suchlicences toactinthefieldofcommunications
areissued,amended,renewed,andterminatedbytheMinistryofCommunicationsoftheRussian
Federation. Theprincipal legislative andregulatory actswhich theMinistry ofCommunications
isguided byduring theconsideration ofapplications for,andtheissuance of,communications
licences include thefollowing:
- PartIoftheCivil Code oftheRussian Federation, dated 1January 1995;
- Federal LawFZ-15 "OnCommunications," dated 22February 1995;
- Federal LawFZ-129 "OnMailService," dated 9August 1995;
- Russian Government Resolution No642"Regulations ontheLicensing ofActivities
intheField ofCommunications intheRussian Federation," dated 5June1994; and
- Russian Government Resolution No1379"OntheLicensing ofTelevision andRadio
Broadcasting andofActivities intheField ofTelevision andRadio Broadcasting in
theRussian Federation," dated 7December 1995.
Inorder tocreate equal conditions fortheobtaining oflicences byanyparties, regardless of
theirorganizational-legal form andthecountry ofincorporation ornationality, decisions to
issueordenylicences aretaken collectively bymembers ofspecial licensing commissions set
upbytheRussian Ministry ofCommunications forthefollowing types ofactivity:
telecommunications, mailservices; andtelevision andradio broadcasting. Prospective licensees
aretosubmit thefollowing documents:
- licence application according totheestablished form, which must provide essential
dataregarding theapplicant andlistitsprincipal activities;
- corporate foundation documents, andcertificate ofregistration;WT/ACC/RUS/13/Add.1
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- decision, ifrequired, onthepossibility ofusing therequested frequency; and
- technicalproposalsprovidingaclearideaofthecommunicationsservicestobesupplied,
aswellasanswers toanumber ofspecific technical questions.
Theconsideration ofapplications foralicence comprises thefollowing fourphases:
- first,adulyexecuted application isaccepted andapreliminary expert examination of
accompanying documents isconducted inaccordance withapplicable legislation;
- then, adetailed technical expert assessment iscarried outtoseeiftheservices tobe
provided willmeetapplicable norms andstandards andbeinlinewiththeestablished
rules fortheorganization ofcommunications andtheuseoftechnical facilities;
- then, "special terms" areworked out,which willbebinding upon theprospective
licensee during hissubsequent activities, including theconditions ofbeing connected
topublic communications networks; and
- finally, thedecision istaken togrant orrefuse togrant alicence.
Thisdecision istaken onthebasis ofsuchprimary factors andconsiderations as:
- projections fortheimmediate future astothedevelopment ofcommunications inthe
given region;
- theavailability ofthese orother communications services there;
- public interest in,andrequirements for,theservices applied for;and
- thequality andquantity ofsuchproposed services, andthetimeframe during which
theywillbeavailable.
7. OnAudio-visual services: theprovision ofaudio-visual services iscurrently licensed in
accordance withthesame procedure which governs theissuance oflicences forpublic movie
andvideo screening. Rules regarding thelicensing ofpublic movie andvideo showings inmovie
theatres andontelevision aresetforthintheRegulations ontheLicensing ofActivities Related
toPublic Movie andVideo Screening, asapproved byGovernment Resolution No.941,dated
19September 1995, andarebinding foralllegalentities andindividuals engaging inbusiness
andentrepreneurial activities intheRussian Federation. Thiskindoflicensing iscarried out
byexecutive authorities oftheRussian Federation 'sterritorial subjects. Responsibility for
maintaining aconsolidated register oflicensees andforproviding methodological, information,
andadvisory support tolicensed legalentities andindividuals supplying therespective services
isheldbytheRussian Federation State Committee onCinematography. Inorder toobtain a
licence, aprospective licensee filesanapplication foralicence along withthepackage ofother
required documents aslisted intheRegulations. Foreign legalentities andnationals mustbe
registered intheRussian Federation toconduct entrepreneurial activities inaccordance with
applicable legislation. Licences areissued for3to5years, unless ashorter validity period
isrequested intheapplication foralicence. Licences areissued forafeewhose sizedepends
onthecorresponding expenses oftheexecutive agency oftheRussian Federation 'sterritorial
subject which isauthorized togrant suchlicences, andisdetermined inaccordance withthe
rulesforestablishing licence fees,asapproved bytheMinistry ofEconomics andtheMinistry
ofFinanceoftheRussianFederation.Alicenceholdermustactinaccordancewiththeapplicable
legislationoftheRussianFederationandtherulesestablishedintheRegulationsontheLicensing
ofActivities Related toPublic Movie andVideo Screenings. Those executive agencies ofthe
Russian Federation 'sterritorial subjects which areauthorized tolicence saidactivities have
therighttosuspend orcancel licences iflicence holders violate theconditions oftheirlicences.
8. Onservices inradio broadcasting andtelevision, seeWT/ACC/RUS/6.WT/ACC/RUS/13/Add.1
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9. Ontransport, licensing conditions fortransportation service providers aredescribed inAnswer
122and123herein, aswellasinAnswer 316,318,and324ofWT/ACC/RUS/9.
Question 94
Re.Questions 206,207,214,215,216(WT/ACC/RUS/9) Wenotethatcertain questions ingeneral
services section (butwhich alsoaffect trade infinancial services) remain unanswered (e.g. on
international transfers (206, 214), capital transactions (207, 215,216). Wewillbeinterested in
thereplies offered tothese questions.
Answer
Theanswers toQuestions 206,214,215,and216weresubmitted totheThird Working Party
indocument WT/ACC/RUS/9/Add.2.
Theanswer toQuestion 207isasfollows:
There arenoquantitative restrictions ineffect intheRussian Federation ontransactions effected
byresidents involving capital movements.
Question 95
Re.Question 210(WT/ACC/RUS/9) Atwhat stage isthetextonstandardization andcertification
inbanking activities, andwhat areitsprincipal provisions?
Throughout theFinancial Services section, reference ismade toadraft policy document entitled,
"Standardisation andCertification inBanking Activities" (e.g., inquestion 210). What isthe
status/timing/proposed content ofthisdocument?
Answer
Based onprovisions setforth inthefollowing Russian Federation Laws No.5151-1 "Onthe
Certification ofProducts andServices", dated 10June1993; andNo.5154-1 "OnStandardization",
dated 10June1993; andNo.2300-1 "OnConsumer Rights 'Protection", dated 7February 1992, as
amended byLawNo.2-FZ of9January 1996, long-term work hasgone under waytoaddress the
problems ofstandardization, methodological support, andcertification inbanking business.
With thisgoalinmind, aworking party hasbeenestablished, consisting ofrepresentatives
ofinterested agencies, nongovernmental organizations, andbanks.
Banking standardization guidelines, asapproved bythisworking party, provide forthe
standardization ofbanking terminology anddefinitions, thestandardization ofbanking services,
metrological support, thecertification ofbanking technologies andservices, thedevelopment of
information support, andtheupgrading ofbanking professionals 'qualifications.
Attherequest oftheCentral Bank oftheRussian Federation, theState Committee on
Standardization,Metrology,andCertificationhasdraftedanactionprogrammetostandardizeandcertify
information technologies inthebanking business. Overthepastfewyears, thisCommittee hasapproved
anumber ofstandards related tothebanking sphere, including:
- information technology, cryptographic dataprotection, procedures fordigital signature creation
andverification based onasymmetric cryptosystems; andWT/ACC/RUS/13/Add.1
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- rules fortheawarding ofState registration numbers forsecurities identification purposes.
Twomore standards related tobanking havebynowbeenprepared. They are:
- metrological support forbanking transactions, general provisions; and
- recommendations regarding thegeneration ofalistofparameters andfacilities usedinbanking
business andsubject tometrological supervision andcontrol.
These standards arebased ontheISOTechnical Committee 68"Banking andrelated financial
services" guidance.
ThisCommittee andtheCentral Bank oftheRussian Federation havejointly developed and
phased inmore than500standardized document forms related tobanking business. They comprise
documents forcash-issue andbudget transactions, cashcontrol, lending operations, payment orders,
etc.
Question 96
Re.Question 213(WT/ACC/RUS/9) Theanswer tothisquestion defines thelistofsector meant
tobenatural monopolies. Wefeelthatperhaps notthefullgiven sectors fallunder thescope of
thetermnatural monopolies. Wewould liketodraw theRussian authorities attention thatseveral
ongoing negotiations under theWTO guidance cover atleast apartofthementioned sectors.
Itisthecaseofmaritime transport services inwhich portservices arecovered bythemodel schedule
ofcommitments and basic telecommunications services which cover large part ofthe
telecommunications andmail services. Please precise what partoftheenumerated sectors, in
reply 213,fallunder thenotion ofnatural monopolies.
Answer
TheFederal LawFZ-147 "OnNatural Monopolies" dated 17August 1995regulates activities
performed bythelegalentities anditsexecutives operating under thecondition ofanatural monopoly,
rather thansetsoutsmonopoly rights tobeaccorded tospecific suppliers ofgoods andservices.
Foramore precise definition seeArticle 3ofthelaw"OnNatural Monopolies" which has
beenpreviously submitted totheWTO Secretariat. Thepurpose ofthislawwastolimittheopportunity
ofmisuse ofmonopoly status towards competitors andtoconsumers ofgoods andservices. Article 4
ofthislawliststheactivitiesandsphereswheresubjectsofnaturalmonopoliesmayexist.Alargenumber
ofentities, which maynotbethesubject ofnatural monopolies, mayalsobeoperating inthelisted
activities andspheres. Inevery sphere ofsuchactivity, thefederal authorities onnatural monopolies
regulation should determine which entities dealing withproduction (sale) ofgoods andservices are
inthecondition ofanatural monopoly. SeeArticles 3and4oftheabove referenced law.Inaccordance
withArticle 10ofthislaw,suchentities shallbelisted inaregister asthesubject ofnatural monopolies
andtheState regulation andcontrol willbecarried outinrelation tothose entities.
Inaccordance withArticle 9ofthislaw,aFederal service oftheRussian Federation onthe
regulation ofnatural monopolies inthecommunications sector, andaFederal service oftheRussian
Federation ontheregulation ofnatural monopolies inthetransportation sector areintheprocess of
being established.WT/ACC/RUS/13/Add.1
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Question 97
Re.Question 218(WT/ACC/RUS/9) Could Russia provide uswithaschedule ofcommitments
(limitations onmarket access andnational treatment) forallthespecific sectors?
Answer
TheRussian Federation willsubmit aninitial offerofschedule forspecific commitments on
market access andexemptions fromnational treatment withrespect ofallsectors induecourse ofits
accession negotiations.
Question 98
Re.Question 225(WT/ACC/RUS/9) Russia provided information that“Iftheinternational treaty
provides forimplementation ofrules other thanthose provided forbyRussian legislation, the
rules ofthatinternational treaty prevail ”.How theRussian authorities willenforce provisions
setforth intheinternational treaty incaseofserious collision between suchatreaty andpreviously
existing domestic law?
Answer
InaccordancewithClause4ofArticle15oftheConstitutionoftheRussianFederation,generally
recognized norms ofinternational lawandinternational agreements towhich theRussian Federation
isaparty formpartandparcel ofitslegalsystem and,intheevent ofaconflict between rulesstipulated
byaninternational treaty andthose established byinternal legislation oftheRussian Federation, the
rules setforth intheinternational treaty prevail.
PursuanttoArticle5oftheRussianFederationLaw"OnInternationalAgreementsoftheRussian
Federation," ruleswhich havebeenestablished byaninternational agreement andofficially published
inRussia, towhich Russia isaparty, havedirect application throughout theRussian Federation unless
itisrequired thatinternal governmental regulatory legalactsbeissued togovern theirenforcement;
forother rules ofinternational agreements toapply, corresponding legalactsneedtobeadopted (in
keeping withArticle 34andSection 5oftheRussian Federation LawNo.101-FZ "OnInternational
Agreements oftheRussian Federation" dated 15July1995).
Ifrules established byaninternational agreement which doesnotrequire thatanyinternal
governmental legalactbeissued areinconsistent withinternal governmental legalactsoftheRussian
Federation, theinternational agreement prevails directly. Where rules stipulated inaninternational
agreement require thataninternal governmental legalactbeadopted, while theexisting legalactof
theRussian Federation which regulates thelegal relationship inquestion isinconflict withthe
international agreement 'sprovisions, Russian State agencies either amend theapplicable internal
governmental legalactaccordingly oradopt anewinternal governmental legalactwhich isconsistent
withtheinternational agreement.
Reaffirming itscommitment totheprinciple ofvoluntary compliance withinternational
obligations, theGovernment oftheRussian Federation ensures thefulfilment oftheprovisions of
international agreements inthesame wayasitensures compliance withitsdomestic lawsandlegal
acts. AllState agencies work withaview toapplying andenforcing them, andpublic prosecutors
andtheiroffices maintain overall supervision overcompliance.WT/ACC/RUS/13/Add.1
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Question 99
Re.Questions 225and243,246,252,256(WT/ACC/RUS/9) Could theRussian authorities ensure
thattheprocedures ofgranting licences areoperated onanon-discriminatory basis, what means
thatthesame treatment isaccorded toforeign services andservices operators astodomestic ones?
Answer
TheRussian Federation willensure thatitslicensing system isinfullcompliance withthe
requirements oftheGATS including Article 6thereof uponaccession. Seealsoanswer 97herein. For
information about licensing ofservices intheareaof:
1. Onarchitecture seeanswer 92and102herein.
2. Onresearchanddevelopment,therulesoflicensinginthisareaarecurrentlyunderconsideration
bytheRussian Federation.
3. Onadvertising, seeanswer 252inWT/ACC/RUS/9/Add./2.
4. Onequipment repair andmaintenance, seeWT/ACC/RUS/6, page8,paragraph (iii):andalso
answer 257inWT/ACC/RUS/9.
Question 100
Re.Question 226(WT/ACC/RUS/9) Arethere anyrestrictions inemploying Russian lawyers for
foreign lawfirms orforeign lawyers toprovide legal services?
Arethere anyrestrictions forRussian lawfirms orlawyers tomake partnership withforeign
lawfirms orforeign lawyers?
With regard totheanswer given in226,canweinterpret thistomean thatforeign providers of
legal services arepermitted toestablish partnerships orother joint arrangements withRussian
lawyers?
Answer
TheRussian Federation 'sexisting legislation doesnotstipulate anyrestrictions ontheretention
ofRussian lawyers orontheconclusion withRussian lawyers ofcontracts byforeign lawfirms.
Theapplicable legislation oftheRussian Federation doesnotimpose anylimitations regarding
theincorporation oflegalentities ortheconclusion ofjointactivity (partnership) agreements byRussian
lawfirms (Russian lawyers) andforeign lawfirms (foreign lawyers). SeeAnswers 219through 231
inWT/ACC/RUS/9.
Question 101
Re.Question 230(WT/ACC/RUS/9) Does theanswer mean thatforeign lawyers arenotallowed
togivelegal advice oninternational laws?WT/ACC/RUS/13/Add.1
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Answer
Inaccordance withParagraph 2ofClause 3oftheRegulations ontheLicensing ofPaidLegal
Services intheRussian Federation approved byRussian Government Resolution No.344,dated
15April 1995, persons having foreign lawdegrees mayprovide paidlegal services intheform of
consultations regarding thelegislation ofthecountry which awarded suchdegrees. Existing Russian
legislation doesnotpresently regulate theprovision byforeign lawfirms andforeign lawyers oflegal
services intheformofconsultations oninternational lawaspractised inthejurisdiction which awarded
suchdegree.
Question 102
Re.Question 234(WT/ACC/RUS/9) Intheareaofaccounting, auditing andbookkeeping services
theestablishment ofawholly-owned subsidiary ispermitted. What isthesituation asregards
branches offoreign firms?
Answer
Inaccordance withtheProvisional Rules ofAuditing intheRussian Federation, approved by
theDecree ofthePresident No.2263, dated 22December 1993, thefollowing persons havetheright
tocarry outauditing activities: natural persons (auditors), andjuridical persons including foreign firms
andjoint-venture firms established withparticipation ofbothjuridical andnatural persons. Theforeign
auditing firms maycarry outtheiractivities through theiraffiliates. Boththeauditors whohavegone
through certification andwishtowork independently andtheauditing firms maybegin theiractivity
onlyafterState registration assubjects ofbusiness activity, thereceipt oflicences forauditing and
theinclusionintheStateregisterofauditorsandauditfirms.Auditfirmsshallberegisteredasenterprises
setupforthepurpose ofauditing andmayhaveanyorganizational structure andlegalstatus except
forthatofapublic joint-stock company.
Inaddition theResolution oftheGovernment oftheRussian Federation No.482,Onthe
Approval ofNormative Documents Regulating Licensing intheRussian Federation, dated 6May1994
stipulates thatinorder toprovide additional guarantees fortheindependence ofaudit firms intheir
auditing activity, itisnecessary thattheshare ofthecertified auditors andorthelicensed audit firm
compromises notlessthan51percentoftheirauthorized capital.
Inaccordance withtheCivilCode oftheRussian Federation boththebranches andcommercial
representation offices cannotbeajudicial person, sotheycannotapply ontheirownforobtaining
alicence tocarry outauditing andaccounting functions.
Question 103
Re.Question 237(WT/ACC/RUS/9) Intheresponse toquestion 237,itisstated thatforeign
nationals, stateless persons, andforeign legal entities shall engage inarchitectural activities on
anequal footing withnational andlegal entities oftheRussian Federation ifthisisstipulated
byaninternational agreement towhich theRussian Federation isaparty. HasRussia signed
anyinternational agreements permitting foreigners toprovide architectural services? Ifso,which
countries have signed agreements withRussia?
Itisalsostated thatintheabsence ofaninternational agreement, foreigners mayparticipate in
architectural activities intheRussian Federation onlytogether withnationals orlegal entities of
theRussian Federation. Areforeigners restricted inthetypes ofarrangements orpartnerships
thattheycanform withRussian nationals orlegal entities?WT/ACC/RUS/13/Add.1
Page12
Answer
Atthistime, theRussian Federation hasnotsigned anyinternational agreements permitting
foreignerstoindependentlyrenderservicesintheareaofarchitecturewithouttheparticipationofRussian
individuals orlegalentities.
There arenorestrictions onforeigners entering intoagreements andparticipating inpartnerships
together withRussian individuals orlegalentities possessing alicence torender services inthearea
ofarchitecture inaccordance withArticle 10ofNo.169-FZ “OnArchitectural Activity intheRussian
Federation ”dated 17November 1995.
Question 104
Re.Question 244(WT/ACC/RUS/9) Please provide aclarification ofwhat ismeant bytheterm
of“specific types ofactivities ”?
Answer
Inaddition toAnswer 244submitted inWT/ACC/RUS/9 theRussian Federation States that
theGovernment Resolution No.1418 “OnLicensing ofSpecific Types ofActivities ”dated
24December1994,regulatesthegeneralproceduresforlicensinginmosteconomicindustries.However,
thespecific licensing ofservices intheareaofarchitectural activities isdescribed inAnswer 92herein.
Question 105
Re.Question 271(WT/ACC/RUS/9) Theanswer tothisquestion makes reference back tothe
response given toquestion 225-Thisreference raises questions regarding when Russian officials
intend topresent itsdraft schedule ofcommitments. What timing isforeseen?
Answer
Seeanswer 97herein.
Question 106
Re.Question 272(WT/ACC/RUS/9) What istheanticipated timing oftheestablishment ofa
national reinsurance market through theestablishment ofprivate federal reinsurance companies?
Could Russia elaborate onhowforeign companies mayparticipate inthisprocess?
Answer
There are31specialized reinsurance companies, 6ofthem withforeign equity participation,
currently inbusiness intheRussian Federation. Inaccordance withRussian Supreme Soviet Resolution
No.4016-1 "OntheBringing IntoForce oftheRussian Federation Law'OnInsurance '",dated
27November 1992, theshare offoreign investors inthecharter capital ofsuchanorganization may
notexceed inaggregate 49percent.
Specializedreinsurancecompaniesmayengageinreinsuranceactivitiesiftheymeetthefollowing
criteria:
- reinsurance must bethesolebusiness theyhavebeenestablished for;WT/ACC/RUS/13/Add.1
Page13
- theymustberegistered intheRussian Federation inaccordance withtheprocedure stipulated
byRussian legislation; and
- theymustbelicensedtoundertakereinsuranceactivities.Undertheabove-referencedResolution,
theminimum paid-in charter capital ofaprospective insurer applying forsuchalicence must
beatleastRub15million.
TheRussianFederationLawNo.108-FZ"OnJointStockCompanies"dated26December1995,
asamended byLawNo.65-FZ of13June1996, requires, atthesame time, thatthecharter capital
ofanopen jointstock company must beequal toatleast1,000 times theminimum monthly wage
established byfederal lawasofthecompany 'sregistration dateandthatthecharter capital ofaclosed
jointstock company mustbeequal toatleast100times theminimum monthly wage under federal law
asofthecompany 'sStateregistration date.Presently, theminimum monthly wagestands atRub75,200
(SeeAnswer 89herein).
Question 107
Re.Question 273(WT/ACC/RUS/9) What isthecurrent status ofthereview ofthebillwhich
isintended toamend minimum capital requirements forinsurance companies? (i.e., following
thepresidential vetoofbillonDecember 31,1995).
Answer
Adraft oftheFederal Law"OnChanges andAdditions totheLawonInsurance", which
concerns, among other things, minimum capital requirements oninsurance organizations, iscurrently
being considered bytheState Duma 'sCommittee onBudgets, Taxes, andFinances forsubsequent
submission tothelower parliamentary chamber.
Question 108
Re.Question 274(WT/ACC/RUS/9) Canaforeign insurer provide insurance toRussian residents
iftheresident seeks such policy coverage andwhere there hasbeen nosolicitation ofbusiness
onthepartoftheforeign insurer? Ifnot,what istherationale forlimiting provision ofinsurance
services tocommercial presence inRussia?
TheRussian insurance legislation imposes restrictions ontheestablishment ofinsurance joint
ventures intheform ofa49percentlimitontheforeign investors 'ownership interest inthecharter
capital ofsuchacompany. Does Russia intend tomaintain thisrestriction inthemedium term?
Answer
1. Inaccordance withRussian insurance legislation, residents wishing togointothebusiness of
insurance ontheterritory oftheRussian Federation must byallmeans register inaccordance with
thestatutory procedure andobtain aninsurance licence inaccordance withtheprocedure stipulated
bythe"Conditions fortheLicensing ofInsurance Activities ontheTerritory oftheRussian Federation"
(No. 02-02-08, dated 15May1996), asapproved bytheRussian Federal Service forInsurance
Supervision. Non-residents must meetsimilar requirements.
Itisalsonoteworthy thatlegislation oftheRussian Federation doesnotprohibit itsnationals
toinsure their property interests abroad byconcluding aninsurance contract outside theRussian
Federation, inwhich casepayments ofinsurance premiums andpayments ofinsurance indemnity in
theevent ofaninsured accident mustbeeffected bytheRussian insured andtheforeign insurer outside
Russian territory.WT/ACC/RUS/13/Add.1
Page14
2. Theceiling of49percent, established byRussian legislation onforeign equity participation
inaninsurance company inRussia, isstilleffective.
Under thePartnership andCooperation Agreement, signed bytheRussian Federation andEU
countries inMay1994, Russia istoliftquantitative restrictions onforeign involvement inthecharter
capital ofinsurance organizations within 5years afterthesigning ofthisAgreement.
Question 109
Re.Question 278(WT/ACC/RUS/9) Could thereply given inanswer tothisquestion befurther
clarified? Theresponse states thatthere are"currently" nolegal grounds toprohibit insurers
involved inlifeinsurance from offering non-life insurance. Arethere anyplans tomandate such
separation?
Answer
There arecurrently nolegislative requirements distinguishing between insurers providing life
insurance andthose providing other types ofinsurance.
Thedraftlaw"OnChangesandAdditionstotheRussianFederationLawonInsurance"contained
provisions establishing suchdifferentiation, butwasvetoed bytheRussian President andisundergoing
review.
Question 110
Re.Question 279(WT/ACC/RUS/9) Ifthedirect branches offoreign insurance companies are
notallowed tocarry outinsurance business, what aretheyallowed todo?
Answer
Asnoted, branches offoreign insurance companies maynotengage insuchinsurance operations
which require appropriate licences. Branches offoreign insurance companies mayengage inthose
activities which apply toriskassessment, damage assessment, andthelike,andwhich areclassified
under GATS asservices auxiliary toinsurance.
Question 111
Re.Question 283(WT/ACC/RUS/9) Does theRussian Federation envisage multilateralization
oftheliberalising measures agreed initspartnership Agreement withtheEC?
Answer
Theanswer tothisquestion willbegiven induecourse intheinitial offer forschedules of
exemptions from theMost Favoured Nation obligations inaccordance withArticle IIofGATS and
theAnnex onArticle IIexemptions. SeealsoAnswer 91herein.
Question 112
Re.Question 286(WT/ACC/RUS/9) Please identify agreements establishing reciprocity measures
intheinsurance sector.WT/ACC/RUS/13/Add.1
Page15
Wenotethattheresponses given inanswer tomany ofthequestions involve theprinciple of
reciprocity e.g.,inquestions 286and296. WillRussia consider replacing thisnotion withan
MFN approach inregards toRussia 'sschedule ofcommitments inthefinancial services sector?
Answer
Thereciprocity principle wasabasisforPartnership andCooperation Agreement withtheEC.
Theissue ofreciprocity willbeconsidered intheprocess oftheaccession negotiations with
dueconsideration taken ofthecommitments ofWTO members onfinancial services.
Question 113
Re.Question288(WT/ACC/RUS/9)Isthereanypossibilityofthereciprocityprovisionwithrespect
tothelicensing offoreign banks being removed inthecourse ofaccession negotiations?
Answer
Atpresent,Russia’slegislationonmarketaccessinthebankingsectorprovidesforthepossibility
ofreciprocal measures toothercountries. During theaccession negotiations andinbilateral negotiations,
theRussian sidewilltakeintoconsideration thelevelofliberalization ofothercountries 'banking sector.
Question 114
Re.Question 289(WT/ACC/RUS/9) While the12percentceiling onforeign capital participation
inthebanking sector hasnotyetbeen exceeded, would Russian authorities consider astaged
liberalization ofthisceiling overtime?
Answer
TheRussian partydoesnotconsider ittimely todiscuss raising the12percentceiling onforeign
banking capital participation inthebanking sector oftheRussian Federation, since thisceiling has
never beenattained.
Question 115
Re.Question 290(WT/ACC/RUS/9) Russia hasindicated that“thegranting ofalicence toopen
aforeign bank branch orjointventure bank issubject tocase-by-case examination ”.From previous
information supplied totheWorking Party, weassume thatsuchanexamination would takeinto
account theforeign equity ceiling, thereciprocity provisions, theminimum capital requirement
forforeign banks, andthefinancial position andbusiness reputation oftheapplicant interms
ofarating given byanorganisation suchasMoody ’sorStandard andPoor. CanRussia confirm
whether these arethecriteria usedorareother factors alsotaken intoconsideration?
Theresponsegiventothisquestionindicatesthata"case-by-case"examinationisdoneinthecontext
ofthegranting ofalicence toopen aforeign bank branch. Intheinterests oftransparency, can
Russian elaborate astowhether there areadministrative guidelines thatarefollowed, andifso,
what theyare?WT/ACC/RUS/13/Add.1
Page16
Answer
TheBank ofRussia issues licences toestablish banks withforeign equity participation inthe
Russian Federation withdueregard forthefollowing:
- theorder inwhich corresponding applications were filed;
- thenames, financial standings, andbusiness reputations oftheapplicants (preference isgiven
tothose applicants which arebanks according tothelegislation oftheircountry oflocation
andwhich dobrisk business withbanks oftheRussian Federation); and
- thegeographical location oftheapplicants andthenature ofbilateral relations between the
Russian Federation andthecountry where theapplicants arebased.
Theminimum contribution byaforeign founder ofabankwhose charter capital consists more
than50percentofnonresidents 'assets maynotbelessthantheequivalent ofUS$2million atthe
exchange ratequoted bytheBank ofRussia onthedayofpayment.
Minimumchartercapitalrequirementsfornewly-establishedbankswhosechartercapitalconsists
more than50percentofnonresidents 'contributions equal 5million ecus.
Russian branches maybeopened byonlythose nonresident banks which havesturdy financial
positions andunblemished business reputations. Preference isgiven tothose nonresident banks whose
short-term obligations arerated nolower thanprime-1 according totheIBCA, Moody 's,orStandard
andPoorratings.
Abankwithmore than50-percent foreign equity participation isrequired toobtain aseparate
licence from theBank ofRussia eachtimeitopens another branch intheRussian Federation.
Thecapital assigned byanonresident banktoitsbranch opened intheRussian Federation may
notbelessthantheequivalent ofUS$5million attheexchange rateoftheBank ofRussia ontheday
ofpayment. Itisnoteworthy thatpreference isgiven totheestablishment intheRussian Federation
ofsubsidiary banks.
TheBank ofRussia may, byagreement withtheRussian Government, impose restrictions on
banking business bylending institutions withforeign equity participation andbyforeign banks 'branches
ifthecorresponding foreign countries haveimposed restrictions ontheestablishment andoperation
ofbanks withRussian equity participation andRussian banks 'branches.
Question 116
Re.Question 292(WT/ACC/RUS/9) Have thelaws"ontheCentral Bank oftheRussian Federation
(Bank ofRussia)" and"OnBanks andBanking Activity" beenmade available? Could Russian
officials provide brief synopses ofthese?
Answer
Federal LawNo.65-FZ “OnAmending theRSFSR LawOntheCentral Bank oftheRSFSR
(TheBankofRussia)”of26April1995(withamendmentsof31July1995)andFederalLawNo.17-FZ
“OnBanks AndBanking Activity ”of3February 1996, havebeenmade available. Acomplete unofficial
English translation hasbeenprovided totheWTO Secretariat.WT/ACC/RUS/13/Add.1
Page17
Question 117
Re.Question 295(WT/ACC/RUS/9) Itisstated thatitisnecessary foraforeign subsidiary bank
toobtain aseparate licence each timeitwishes toopen anewbranch. Does thisrequirement
alsoapply totheopening ofarepresentative office?
Incertain circumstances, theBank ofRussia mayimpose restrictions onthebanking services
provided bylending institutions withforeign equity participation andforeign bank branches.
What aretheprincipal restrictions envisaged?
Answer
Foreign banks mayonlyopen their representative offices ontheterritory oftheRussian
Federation onthebasis ofanauthorization granted bytheCentral Bank ofRussia.
Federal LawNo.17-FZ "OnBanks andBanking Activity" dated 3February 1996empowers
theCentral Bank toimpose, byagreement withtheGovernment, restrictions onbanking business by
lending institutions withforeign equity participation andbyforeign banks 'branches. Thesubstance
oftherestrictions depends onmeasures being taken intherespective countries towards Russian lending
institutions, onfinancial market conditions, andontheeconomic situation inRussia.
Question 118
Re.question 298(WT/ACC/RUS/9) TheRussian Federation hasadvised that“theBank ofRussia
mayestablish additional prudential requirements, aswellasadditional requirements regarding
procedures forthesubmission ofreports andtheapproval ofgoverning bodies, listsofauthorized
banking transactions, andminimum capitalization requirements fornewly-registered banks and
foreign bank branches ”.Wewould appreciate clarification ofwhat these additional requirements
involve.
Answer
Pursuant totheFederal Law No.17-FZ "On Banks andBanking Activity" dated
3February1996,theBankofRussiaisentitledtoestablishadditionalrequirementsonlendinginstitutions
withforeign equity participation andforeign banks 'branches (i.e.requirements different fromthose
made onwholly Russian-owned lending institutions) withrespect toprudential norms, reporting
procedures andmanagement approval, listsofauthorized banking transactions, andtheminimum size
ofthecharter capital ofnewly-registered lending institutions withforeign equity participation andnewly-
registered branches offoreign banks. SeealsoAnswer 117herein.
Question 119
Re.Question 312(WT/ACC/RUS/9) What typeofspecial tourism-related education isrequired
tomeet thiscriterium forobtaining alicence fortravel agency?
Answer
Russian Government Resolution No.1222, dated 12December 1995, which defines criteria
forlicensing touroperators, requires, among other things, thataprospective licensee should haveat
least onestaffprofessional withspecialized training qualifications inthefield oftourism oran
employment record ofatleastthreeyears withatravel agency. TheResolution doesnotfurther specify
thekindofrequired training. Asanapplication foralicence isconsidered, anytraining certificate,WT/ACC/RUS/13/Add.1
Page18
oranemployment record, istaken intoaccount. Thiscriterion maytakeongreater significance if
theRussian Federation State Committee forPhysical Culture andTourism, which isempowered to
revoke licences, receives acomplaint about atravel agency 'spractices.
Question 120
Re.Question 315(WT/ACC/RUS/9) Intheresponse toquestion 315,Russia hasstated thatit
isanobserver intheNegotiating Group onMaritime Transport Services. Does Russia intend
tocomplete thequestionnaire onmaritime transport services?
Answer
Russia willconsider thisissue aftertheresumption ofthenegotiations onmaritime transport
services under theauspices oftheWTO.
Question 121
Re.Question 316(WT/ACC/RUS/9) Inresponding toquestion 316,Russia hasstated thatthere
isanetwork ofrepair andmaintenance companies fortheoverhaul andservicing ofaircraft,
engines andaccessories. Arethese services provided bythegovernment, orbyprivate companies,
orbyboth? Ifboth, dotheterms under which theyoperate differ? Ifso,how?
Answer
Russia hasanetwork ofenterprises providing repair andmaintenance services foraircraft,
engines, andancillary equipment. These service providers include bothState-owned enterprises and
private companies. Thelarger partofsuchprivate companies currently areinthemaintenance ofaircraft,
engines, andancillaries, while State-owned enterprises aremostly concerned withtheirrepairs. Under
applicable legislation, thebusiness andproduction operations ofcivilaviation andaircraft-building
enterprises, regardless oftheirownership status, aresubject togovernmental regulation, which includes
thecertification ofalllegal entities andindividuals undertaking anytypeofactivity related tothe
manufacture, repair, andmaintenance ofaviation equipment andtoflight safety.
Question 122
Re.Question 318(WT/ACC/RUS/9) Intheanswer toquestion 318,itisstated thatinorder to
obtainalicencetoprovideinlandwaterwaytransportationormaritimetransportation,theapplicant
must have an"approved listofservices supplied tothemarket". How doesanapplicant obtain
anapproved listofservices? Arelicences granted onadiscretionary basis?
Answer
Russian Government Resolution No.840,dated 23August 1993, contains alistofservices
subject tolicensing onthismarket. Thislistisissued toapplicants upon theirfiling ofapplications
foralicence toprovide transportation andforwarding services. After being approved byanapplicant,
thelistisreturned tothelicensing agency. Licences areissued onacase-by-case basis, thebasis for
granting thelicence isfound inRegulation ForLicensing Carriage, Forwarding andOther Activities
connected withTransportation andMaintenance ofTransport Vehicles IntheRussian Federation
(endorsed byDecision oftheGovernment oftheRussian Federation No.118,dated 26February 1992,
asamended) which hasalready beenprovided totheWTO Secretariat.WT/ACC/RUS/13/Add.1
Page19
Question 123
Re.Question 324(WT/ACC/RUS/9) Inparagraph 2onpage 103Russia provides information
ondifferent periods oflicences issued bytheRussian Transport Inspection Service. Weareof
theviewthat3months isnotasufficient period foroffering effective services inthissector. Please
provide more clarity what arecriteria forobtaining longer validity ofalicence inthissector.
Answer
Alicence foraperiod ofthreemonths isissued attherequest ofanapplicant, inorder toobtain
alonger-term licence, therequested period forupto5years istobeindicated intheapplication. The
objective criteria fordenying alicence (inadequate vocational training, submission offalseinformation,
etc.)areindicated inRegulation ForLicensing Carriage, Forwarding andOther Activities connected
withTransportation andMaintenance ofTransport Vehicles IntheRussian Federation (endorsed by
Decision oftheGovernment oftheRussian Federation No.118,dated 26February 1992, asamended)
which hasalready beenprovided totheWTO Secretariat.
Question 124
According toourinformation, several providers ofconstruction andengineering services have
reported complaints onnon-transparent andcumbersome system ofcharges andfeesbeing imposed
onforeign operators inRussia. Several different charges, including value added tax,excise tax,
transportation taxandother local taxes amount altogether toabout 45percentofthevalue of
services offered which undermine competitiveness offoreign service operator. Please clarify the
system ofcharges imposed onforeign construction services operators andparticularly, confirm
thatforeign construction services operators aretreated onnon-discriminatory basis.
Answer
Procedures forthepayment oftaxes, dues, andotherobligatory deductions byforeign nationals
andlegalentities aresetforthinRussian taxlegislation. Foreign nationals andlegalentities undertaking
production andother commercial activities onRussian territory aresubject totaxes, dues, andother
obligatory deductions onaparwithRussian nationals andlegalentities. Legislation provides forno
discriminatory treatment offoreign nationals andlegalentities operating intheconstruction industry.
Question 125
Re.Question347(WT/ACC/RUS/9)InwhichsectorofindustryhastheRussianFederationinitiated
aninvestigation tobeconducted inconformity withtheprovisions ofArticle XIXofGATT 1994
andtheWTO Agreement onSafeguards inorder todetermine whether increased imports are
causing serious injury totheposition ofaspecific industry?
Answer
Since Russian Federation isnotaparty torespective WTO instruments, investigations against
injuriousimportationofproductsandpossibleintroductionofsafeguardmeasuresarebasedonrespective
provisions ofRussia 'sinternational trade agreements anditsinternal legislation. Atpresent such
investigations areconducted inconnection withimportation ofwhite sugar, some alcohol andvodka,
some textiles andelectric lamps.
SeemoredetailedinformationindocumentsWT/ACC/SPEC/RUS/1andWT/ACC/SPEC/RUS/2.WT/ACC/RUS/13/Add.1
Page20
Question 126
Re.Question376(WT/ACC/RUS/9)Canforeignlawfirmsorforeignlawyersprovidelegalservices
onathird country lawother thanRussian andhome country law?
Answer
Paragraph 2ofClause 3oftheRegulations ontheLicensing oftheProvision ofPaidLegal
Services ontheTerritory oftheRussian Federation, approved byRussian Government Resolution
No.344,dated 15April 1995, mandates thatpersons having aforeign country 'scertificate ofhigher
legaleducation maysupply paidlegalservices intheform ofconsultations onthelegislation ofthe
foreign country. Existing Russian legislation doesnotyetregulate conditions fortheprovision byforeign
lawfirms andforeign lawyers oflegalservices intheformofconsultations onthird-country legislation.
SeealsoAnswer 101herein.
Question 127
What arethecriteria ofeconomic testforforeign service providers?
Answer
When issuing toanemployer alicence forforeign employees, theRussian Federal Migration
Service isobliged toconsider therelated conclusion oftheadministration intheregion where the
foreigners willbeemployed. Thisapplies notonlytoservice providers, buttoanyandallforeigners
being hired. When preparing their conclusions, local administrators areguided byavariety of
considerations, which include, asarule,unemployment levels intheirareas (comprising bothoverall
unemployment andunemployment intheeconomic sector concerned), theextent which demand for
suchservices hasbeenmet,theavailability ofsocial services intheregion, andother practical factors.
Thiswasalsodescribed inWT/ACC/RUS/6: Regime ofRegulations ofTrade inServices, page2on
theissuance ofpermits based upon aneconomic needs test. SeealsoAnswer 88herein.
Question 128
Since there isnoexplanation provided ontheconstruction services, doesthismean thattheRussian
Federation does notwant toopen construction services toforeigners? Anddoes theRussian
Federation notwant tobindcommitments inthissector?
Answer
TheRussian Federation willsubmit aninitial offerofaschedule ofspecific commitments for
services induecourse.
Question 129
Please provide information onanyservices provisions contained inRussia 'spreferential trade
agreements.
Answer
Information tothisquestion willbegiven induecourse intheinitial offer ofaschedule of
exemptions from theMost Favoured Nation obligations inaccordance withArticle IIofGATS and
theAnnex onArticle IIexemptions. SeealsoAnswers 91and111herein.WT/ACC/RUS/13/Add.1
Page21
Question 130
Atthelastmeeting oftheWorking Party, indications were given thattheRussian parliament
wasconsidering newrules intheareaofsecurities. Have there been anydevelopments inthis
regard (i.e., have newlaws, regulations orrules governing securities operations been passed?
Ifso,what dotheycover?)
Answer
TheFederalLawFZ-39"OnSecuritiesMarket"waspassedbytheRussianFederationlegislature
inApril 1996. Thislawcovers allaspects ofactivities inthesecurities market including thedefinition
andscope ofprofessional activities, issuance ofsecurities, information anddisclosure, advertising,
regulation andlicensing requirements. Licences issued prior totheadoption ofthislawarevalid for
oneyearafteritsfinaladoption.
Question 131
With which countries hasRussia signed bilateral maritime transport agreements? Could Russia
provide specific information onthetypes ofmaritime services thatarecovered andanypreferential
treatment thatisaccorded toother countries?
Answer
Russiahassignedbilateralseashippingagreementswiththefollowingcountries:Algeria,Angola,
Argentine,Egypt,Belgium,Bulgaria,Brazil,Britain,Hungary,Vietnam,Ghana,GuineaBissau,Greece,
Georgia (theagreement withitstillhastoberatified), Denmark, Zaire, India, Iraq,Spain, Italy, Cyprus,
China, Cuba, Latvia, Libya, Lithuania, Luxembourg, Madagascar, Malaysia, Malta, Morocco, Mexico,
Mozambique, theNetherlands, Norway, Cape Verde Islands, Pakistan, Poland, Portugal, Rumania,
SaoTome ePrincipe, Seychelles, Syria, theUnited States, Tunisia, Turkey, Ukraine, Finland, France,
Germany, Czech Republic, Slovakia, Sweden, SriLanka, Ethiopia, andJamaica. Themerchant shipping
agreements havevirtually identical contents. They regulate shipping policies, shipandcrewtreatment,
andcooperation between thesignatory countries.
Question 132
Nospecificinformationhasbeenprovidedonotherkeyservicessectorssuchasconstructionservices
andenvironmental services. Areforeigners permitted toprovide these services inRussia? If
so,what types oflicensing requirements areinplace? Areforeign firms andnational firms treated
onthesame basis?
Answer
Atpresent, foreign companies mayprovide services inthesphere ofconstruction and
environmental services inaccordance withtheeffective legislation which applies onanon-discriminatory
basis.
Resolution No.351oftheGovernment oftheRussian Federation "OnApproving Regulations
forLicensingConstructionActivities",dated25March1996,establishesproceduresforobtaininglicences
andcomplying withcommon licensing requirements fordomestic andforeign companies. Toreceive
alicence, theapplicant mustsubmit, inaddition toanappropriate application, copies ofhisconstituent
documents andregistration certificate, information onthequalifications ofhisoffice employees andWT/ACC/RUS/13/Add.1
Page22
workers, technical base, quality control procedures, labour protection schemes, environmental and
fireprotection schemes, acertificate ofinsurance against construction risks.
Withregard toenvironmental protection schemes, rulesandprocedures forobtaining licences
have been established incompliance withResolution No.168oftheGovernment oftheRussian
Federation "Regulation onLicensing Specific Types ofActivities intheSphere ofEnvironmental
Protection", dated 26February 1996, andincompliance withOrder No.282oftheMinistry for
Protection ofEnvironment andNatural Resources oftheRussian Federation "OnLicensing Procedures
inRespect ofSpecific Types ofActivities intheSphere ofEnvironmental Protection", dated
18June1996. Thespecified rulesandprocedures forreceipt oflicences apply bothtoindividuals and
legalentities thatareengaged inoperations inthesphere ofenvironmental protection intheterritory
oftheRussian Federation.
Toobtain appropriate licences, theapplicant mustsubmit, inaddition tothecustomary setof
documentsrequiredforlicenceissuance,thefollowingformswhichhavebeenelaboratedbytheMinistry
forProtection ofEnvironment andNatural Resources oftheRussian Federation:
- "Information onthequalifications ofenterprise employees andretained specialists";
- "Information onthecurrent status ofthetechnical base".
Prior tothedecision toissue anappropriate licence, thelicensing agency: performs anexpert
examination ofallsubmitted documents toestablish whether suchmaterials arecomplete andaccurate
andwhether thelicensed activities areperformed incompliance withsuchecological requirements which
havebeenestablished fortheapplicant inthenormative documents; establishes theeffective licence
terms (licence terms); arranges, ifneedbe,additional expert examinations (inclusive ofindependent
examinations) andecological audits.
Question 133
Please explain thecriteria against which requests fortheemployment offoreign workers are
assessed andhowtherequirement oncompanies topaytheequivalent oftheminimum wage to
theauthorities when theyemploy aforeign worker isoperated? Istheamount equal tothe
minimum wage tobepaidforaslongasthatperson isemployed, orisitaone-off payment?
Answer
SeeAnswers 88,89,and90,herein. Inthecourse ofreview ofanemployer ’sapplication,
dueregard isgiven fortheavailability ofcomparable professionals onthegiven territory andtheabsence
ofthepossibility ofredistributing labour resources from other regions andensuring equal pay
arrangements forforeign andRussian employees. Authorizations tohireforeign nationals areissued
toemployers bymigration services uponpresentation ofcopies ofpayment orders confirming payment
oftheauthorization fee.Authorization feesarepayable byemployers onaone-time basis.
Question 134
Howdothestreamlined procedures fortheapproval oftheemployment ofkeypersonnel byforeign
investors operate?
Answer
Theprocedure whereby keypersonnel ofcompanies withforeign equity participation obtain
workpermit confirmations differs fromtheprocedure forobtaining authorizations tohireanduseforeignWT/ACC/RUS/13/Add.1
Page23
employees inthatitdoesnotrequire thesubmission ofanyproposal (conclusion) fromtheexecutive
authority oftheregional government where therespective foreign nationals willbeemployed. Decisions
toissuework permit confirmations aretaken directly bythecorresponding region 'smigration service.
Anemployer granted suchaconfirmation ischarged afeeequal to15times theminimum monthly
wage established bylegislation oftheRussian Federation.
Question 135
Please explain theconcepts ofabank credit organisation andanon-bank credit organisation.
What arethedifferent functions ofeachtypeofinstitution?
Answer
Abankisalendinginstitutionhavingtheexclusiverighttoundertakeallofthefollowingbanking
transactions:
- theattraction ofcashdeposits from individuals andlegalentities;
- theinvestment ofsuchdeposits initsownname andatitsownexpense forafixed term, on
arepayment basis, andforafee;and
- theopening andmaintenance ofbankaccounts forindividuals andlegalentities.
Anon-banklendinginstitutionisalendinginstitutionentitledtoundertaketheindividualbanking
transactions listed inArticle 5oftheFederal LawNo.17-FZ "OnBanks andBanking Activity" dated
3February 1996. Thepermissible combinations ofbanking transactions areestablished bytheBank
ofRussia.
Question 136
What isRussia 'sintention withregard totherequirements inthebanking sector forreciprocity
from other countries? Please state whether ornotsuchrequirements willbemaintained.
Answer
Atpresent,Russia’slegislationonmarketaccessinthebankingsectorprovidesforthepossibility
ofreciprocalmeasurestoothercountries.Duringtheaccessionnegotiationsandinbilateralnegotiations,
theRussian sidewilltakeintoconsideration thelevelofliberalization ofother countries banking sector.
Question 137
Foreign aircarriers operating inthisservices sector currently facecharges forover-flying Russia
inaddition tostandard airtraffic-control charges. Weunderstand thatRussian airlines arenot
subject tothese charges. Please indicate what plans Russia hastointroduce national treatment
inthismatter.
Answer
Thesystem ofcharges foraeronavigational services inplace intheRussian Federation is
consistent withbilateral intergovernmental agreements onairtraffic withforeign countries, andthe
Chicago Convention onInternational Civil Aviation (Article 15).WT/ACC/RUS/13/Add.1
Page24
Suggestions thatforeign users ofRussian airspace aresubject toanyadditional inconsistent
charges areerroneous. Thisinformation isbeing provided forpurposes ofclarification, sincethesubject
ofQuestion 137doesnotpresently appear tofallwithin thescope ofGATS.
Question 138
Please listallcommitments inbilateral orregional agreements thatRussia believes could require
ittotakeMFN exemptions initsGATS Schedule ofcommitments.
Answer
Theanswer tothisquestion willbegiven induecourse intheinitial offer ofaschedule of
exemptions from theMost Favoured Nation obligations inaccordance withArticle IIofGATS and
theAnnex onArticle IIexemptions. SeealsoAnswers 91and111herein.
Question 139
Please provide information onthetypes ofbusiness where suchalicence isrequired, those sectors
where licences willnotbegranted toforeign enterprises ortopartially foreign funded firms.
Answer
Information onthetypes ofbusiness inwhere suchalicence isrequired hasbeengiven inthe
document WT/ACC/RUS/6, page3.Additional information willbegiven induecourse intheinitial
offer ofaschedule ofspecific commitments.
Question 140
Please describe thecriteria applied toobtain abusiness licence insectors thatrequire it.
Answer
Answers tothisquestion havebeenpreviously provided inAnswers 92,93,99,101,102,
106,115,132herein andinAnswers 201,219,223,226,227,232,244,257,312,317,318,and
324inWT/ACC/RUS/9 andinAnswers 248and250inWT/ACC/RUS/9/Add.2.
Question 141
Please describe theroleofsub-federal authorities, e.g.,intheautonomous republics andoblasts,
inpermitting theestablishment orutilization ofservices provided byforeigners, inestablishing
labour restrictions onestablishment oroperation ofaservice firm, incharging labour feeson
theuseofforeign labour, andinlicensing enterprises.
Answer
Sub-federal authorities areresponsible forissuing permits fortheestablishment ofcompanies,
including those withtheparticipation offoreign capital, inmany services sectors except where such
permitsareissuedonlybythefederalauthoritiesortheCentralBank.Insomecases,suchasthelicensing
oflabour migration, permits areissued byfederal authorities onthebasis ofrecommendations by
sub-federal authorities.WT/ACC/RUS/13/Add.1
Page25
Question 142
Please outline howRussia enforces priority useofdomestic labour inenterprises. How isit
established whether there isasufficient labour need, thatworkers canenter tostaffupservices
firms?
Answer
When examining applications from employers forauthorizations tohireforeign employees,
theexecutive authorities oftheregional governments takeintoaccount thelevelofunemployment in
thegiven areas, theavailability ofcomparable domestic employees, thepossibility ofmoving labour
resources overfrom other Russian regions, andother factors, including theeconomic effectiveness
ofemploying foreigners.
TRADE INGOODS
Question 143
Theresponse toQuestion 4(WT/ACC/RUS/9) indicates thatcertain alcoholic beverages have
been added tothelistofgoods subject toprice regulation atthefederal level.
(a) What isthepurpose ofthisprice regulation? How were theprices established?
(b) Aretheminimum prices fordomestic andimported products thesame? Ifnot,please
address thisdifference inlight ofthenational treatment provisions ofArticle IIIoftheGATT
1994.
Answer
(a) Price regulation hasbeenextended toalcoholic products having astrength of25-40 degrees
duetothefactthatbothdistilleries andother enterprises inthefoodindustry havebegun toproduce
these types ofalcoholic products.
Inorder tomake vodka andliquors morecompetitive andincrease budget revenues, theRussian
Governmenthasdecided(ResolutionNo.915"OnChangesandAdditionstoNormsandRulesGoverning
theProduction andTurnover ofEthanol andAlcoholic Products," dated 31July1996) toextend the
listofalcoholic products subject toprice regulation.
(b) Pending
Question 144
Inresponse toquestion 12andquestion 64(WT/ACC/RUS/9), Russia states thatisapplying an
expansive interpretation totheworking definition adopted intheWTO Understanding onthe
Interpretation ofArticle XVII andthatthere maybealimited number ofenterprises which should
benotified. Theresponse alsoindicates thatitiscollecting thenecessary datatocomplete the
questionnaire onState trading enterprises.
Weappreciate Russia 'sefforts toreview andidentify possible State trading enterprises under
thenewWTO Understanding. Thisisagoodfirststep,andwillgreatly assist theWorking Party
incompleting thisaspect ofRussia 'sWTO accession process.WT/ACC/RUS/13/Add.1
Page26
(a) Inthiscontext, please elaborate onthe"expansive" interpretation usedbyRussia ofthe
working definition adopted intheWTO Understanding ontheInterpretation ofArticle
XVII, andonhowthegovernment determines which entities remain/become State trading
companies.
(b) Werequest thatRussia prepare draft notifications forthetenentities listed asState trading
enterprises intheresponse toquestion 12(WT/ACC/RUS/9) forreview bytheWorking
Party.
(c) DoesRussia haveatimeframe inmind forcompletion ofitsreview ofitsremaining entities
todetermine ifthese entities should benotified totheWTO Secretariat under Article XVII?
(d) What special orexclusive rights orprivileges aregranted totheenterprises listinthe
response toquestion 12(WT/ACC/RUS/9) What aspects ofthese enterprises distinguish
their activities from those ofother State-owned firms?
Answer
Answers toquestions about special andexclusive rights listed intheanswer toquestion 12
inWT/ACC/RUS/9willbegivenduringpreparationsfortheWorkingParty'smeetingexpresslydevoted
toissues related toStatetrading enterprises. Russia willcomplete itsanalysis andfinalize thedrafts
ofcorresponding notices prior toitsaccession totheWTO. Theterm"expansive" isamisprint and
should beread"extended".
Question 145
Theresponse toquestion 21(WT/ACC/RUS/9) refers verygenerally tothe"system ofgovernment
regulation ofindustry." Would Russia please provide further information and/or copies of
legislation describing that"system"?
(a) What specific incentives areoffered toinvestors?
(b) What types offederal programmes inindustry areenvisioned?
Answer
(a) Therequested documents have already been provided totheWTO Secretariat. Seethe
consolidated listoflegislative texts, submitted totheWTO Secretariat (WT/ACC/RUS/12). Information
onthespecial incentives forinvestors isdescribed more fully inAnswers 4and7herein
(WT/ACC/RUS/13).
(b) TheRussian Federation LawNo.FZ-128 “OnthelistofFederal goal-oriented programmes
andfederal budgetary expenditures forparticular government agencies in1996 year”dated
23September 1996, approves thelistofthefederal programmes adopted forfulfilment in1996. This
listincludes, inparticular, thefollowing programmes:
1. Defence industry conversion (1995-1997);
2. Space programme ofRussia (upto2000);
3. Fuelandenergy (1996-2000);
4. Electronics development inRussia (1994-2000);
5. Russia ’smerchant marine revival (1993-2000);
6. Russia ’scivilaircraft development (1994-2000);WT/ACC/RUS/13/Add.1
Page27
7. State protection ofmachine-tool construction (1993- 1998);
8. Machine-tool construction fortheagro-industrial complex ofRussia (1993-1997);
9. Russia ’sraw-material basedevelopment (1994-2000);
10. Improvement ofRussia ’ssoilfertility (1996-2000);
11. Protection ofRussia ’sforests; and
12. Competitiveness improvement ofdomestic products.
Question 146
Concerning reply 24(WT/ACC/RUS/9), wewould likemore information onhowdomestic prices
areestablished. Inparticular, weareinterested inhowRussia determines the"mark-up" for
goods withprice controls. By“mark-up ”wearereferring tothedifference between international
prices (relatively low)anddomestic Russian prices (relatively high) forimported goods. When
thedomestic price ishigher thantheinternational price, theimported product willgenerally be
soldatahigher price thantheprice atwhich itisimported. Wenotethatthismaynotbethe
caseinRussia ontheaverage, particularly insituations where domestic prices arelower than
world prices (asnoted inreply 37),butmark-ups mayexistforparticular products orinparticular
markets.
(a) Wewould appreciate some more information onhowthemark-up isdetermined andwho
collects it.
(b) Arethere anygovernmental policies thataffect thismark-up, andwhointheRussian
marketplace receives thismark-up?
Answer
(a) Inkeeping withRussian Presidential Decree No.236"OnPrice Liberalization Measures",
dated 3December 1991, atransition hasbeenunder wayinRussia since2January 1992, tofreemarket
prices torespond totheinfluence ofsupply anddemand, including prices foragricultural products
procured bythegovernment. Asaresult ofthisliberalization, thedomestic market prices inRussia 's
farming sector andcomparable world prices havebeendrawing more closely together. Forexample,
in1995, domestic market prices foragricultural staples, asestimated bytheRussian Ministry for
Agriculture andFood, reached 30-75 percentofimport prices forgrain crops, 89percentofsuch
prices forsunflower, 64percentforpotatoes, and32-68 percentforother vegetables, andneared
thelevelofprices forimported hogs, poultry, andmilk. Inthese conditions, thegovernment doesnot
setanymark-ups ondomestic market prices foragricultural products toeventhem outwithprices
foragricultural imports.
(b) Under applicable legislation, thelimited remaining Stateregulation ofprices andratesiscarried
outinRussia withrespect toproducts ofnatural monopolies suchasthepower generation industry,
thegasdistribution network, thepumping, transfer, andbulktransportation ofoil,railroad freight
shipments, portandice-breaker services, andbasic communications, aswellasproducts purchased
exclusively orpredominantly bytheState. Prices forimported products, withtheexception ofalcoholic
beverages, arenotregulated. Seealsoanswer 147herein.
Question 147
Concerning replies toquestions 27and28(WT/ACC/RUS/9), wenotethatminimum prices are
“obligatory onlyforenterprises andorganizations engaged inpurchases forState reserves ”and
purchases bytheFederal Food Corporation (FFC) goforuseofcertain special consumers.WT/ACC/RUS/13/Add.1
Page28
(a) Could Russia explain therelation between theinformation provided inQuestion 27and
theinformation provided inQuestion 28.
(b) Inparticular, doestheFFCuseminimum prices when making itspurchases? Ifso,could
Russia explain whyitpaidapproximately halftheminimum price established in1996for
purchases in1995 ofmilkandmeat?
(c) Areminimum prices usedforpotatoes andvegetables (products purchased bytheFCC
butnotonthelistofminimum prices for1996)?
(d) Please address theuseofsuchminimum prices forpurchases ofimports inthecontext
oftheprovisions oftheWTO Agreement onCustoms Valuation, i.e.,arethese prices used
asthebasis forcustoms valuation oftheimported goods, andifso,isnotthisinconflict
withtheprovisions oftheAgreement?
Answer
(a) Theanswers provided inresponse toquestions 27,28and37inWT/ACC/RUS/9 areconsistent.
(b) In1995, theFFCpurchased milkandmeatatminimum guaranteed prices established thatyear.
In1996, suchminimum guaranteed prices havebeen, withaccount taken ofinflation, higher thanin
1995.
(c) Suchproducts arebought bytheFFC, buttheyarenotincluded onthelistofproducts covered
byminimum prices for1996.
Potatoes andother vegetables arenotonthislistofproducts acquired bytheFFCatminimum
guaranteed prices. Prices forpotatoes andother vegetables wereliberalized longbefore theissuance
oftheRussian Presidential Decree of3December 1991.
(d) Minimum guaranteed prices donotserve asabasis forthecustoms valuation ofimported
products.
Question 148
CanRussia provide information onthequantity ofproduction eligible toreceive minimum prices?
Answer
Thisinformation wasprovided forthethirdmeeting oftheWorking Party intheanswers to
questions 27,31,39,115,28,43,57,58,114,and119ofWT/ACC/RUS/9.
Question 149
Regarding minimum prices required foralcoholic beverages, thedifferential maintained inthe
prices fixed fordomestic andimported alcohol hasbeen linked tothedifference inexcise taxes
applied toimported goods anddomestic andCISproducts.
What progress hasbeen made inequalizing theminimum price forwestern imported alcoholic
beverages andCISanddomestic products?WT/ACC/RUS/13/Add.1
Page29
Answer
Pending.
Question 150
Theresponse toquestion 40(WT/ACC/RUS/9), pertaining toAQ116(WT/ACC/RUS/4), states
thattheanswer ispending regarding theinconsistent statement thatthedraft budget provides
forsupport onlytothecoalindustry.
Please provide aresponse tothisinconsistency ifoneisnowavailable.
Answer
Seeanswer 40inWT/ACC/RUS/9/Add.2.
Question 151
Inprevious documentation, Russia indicated thatthere wasanewdraft law"onBasic Principles
oftaxation" which redefines thejurisdiction offederal andsub-federal authorities inmatters of
taxation, aswellastheresponsibilities oftaxpayers andtaxadministration bodies.
(a) What isthestatus ofthisdraft law?
(b) Would Russia please outline itsprovisions, withspecial reference toitseffect onexisting
taxprovisions?
(c) Towhat extent willthislawaddress Russia 'stwo-tier excise taxsystem forimports and
domestic products, VAT exemptions onsimilar domestic andimported products, and
regional taxes onimports?
Answer
(a) TheCouncil oftheFederation rejected thedraftlaw"Onentering changes intotheLawof
theRussian Federation "Ontheprinciples oftaxsystem intheRussian Federation" passed bytheState
Duma on12July1995. TheGovernment oftheRussian Federation, then, required theState Duma
toreconsider thedraftlaw.
(b) Thedraftlawpassed bytheState Duma on12July1995 provided forthechange ofthetitle
("Ongeneral principles oftaxes andcharges intheRussian Federation"), thestructure oftheexisting
Law"OnthePrinciples ofTaxSystem intheRussian Federation", andpresented itsnewversion.
Thisdraft lawattempted todefine theessence ofthegeneral principles oftaxation intheRussian
Federation, specified thelistsoftaxes andcharges applicable intheRussian territory (open listsof
regional andlocaltaxesandcharges wereproposed), determined theprocedure forentering amendments
intolegal actsontaxes andcharges, adjusted theeffective procedure ofexercising taxcontrol and
appealing against acts(failure toact)oftaxauthorities, stipulated provisions forsome mitigation of
sanctions fortaxviolations. Taking intoaccount thatthedraftlawhadserious weaknesses, andthat
thework onmodification ofthesaidlawceased tobeimperative inconnection withthedevelopment
ofaregulatory actsystematizing taxlegislation (draft TaxCode oftheRussian Federation) coming
toitsfinalstage; therefore, thework onthepreparation oftheDraft TaxCode wasconsidered asa
priority task.WT/ACC/RUS/13/Add.1
Page30
(c) TheDraft didnotregulate thetaxtreatment withrespect tospecific taxes, because inaccordance
witheffective legislation thismatter istoberegulated byrespective federal lawsandother regulatory
actsontaxes.
Question 151A
Russia 'sresponse toquestion 341(WT/ACC/RUS/9) provides astatus report ofthedraft Tax
Code. Weunderstand thatthedraft General PartoftheTaxCode (Part 1)hasbeen rejected
onafirstreading andresubmitted toacommittee forfurther revision.
What isthepresent status ofthedraft Part1oftheTaxCode, aswellasdrafts ofParts 2,3,
and4?
Answer
Thegeneral partofthedraftTaxCode introduced bytheGovernment oftheRussian Federation
totheState Duma inFebruary 1996 wasaccepted forconsideration bytheState Duma atthefirst
discussion withtheformation oftheCommission forconciliation. ThedraftTaxCode wasnotsubmitted
forthefirstreading intheStateDuma. TheCommission forconciliation having considered inJuly1996
theconceptual issues ofthedraftTaxCode recognized thenecessity ofadopting thedraftTaxCode
toensure consistency ofthetaxregulatory framework anduniform legalprocedures, andalsoregarding
theexpediency ofelaboration ofexhaustive listoffederal, regional andlocal taxes andcharges. A
specialworkinggroupwaschargedwiththedevelopmentofspecificwordingwithrespecttothedecisions
agreed upon bytheCommission.
TheGovernment oftheRussian Federation isalsoconsidering partsII-IVofthedraftTaxCode
oftheRussian Federation which specifically defines itsgeneral partwithrespect tofederal, regional
andlocaltaxes andcharges. Inorder topromote astable andefficient taxsystem which could beused
asoneofkeyinstruments ofgovernment regulation ofeconomic processes, aCommission ofthe
Government oftheRussian Federation fortheimprovement oftaxlegislation hasbeenestablished as
acoordinating body. ThisCommission isintended toensure thedevelopment ofastable legalframework
ofthetaxsystem thatwould include efficient regulation oftherights andobligations ofthesubjects
oftaxrelations, theestablishment ofmechanisms andprocedures fortheirinteraction, creation of
conditions forthepayment oftaxes infullbytaxpayers, division ofcompetence between thebodies
exercising taxcontrol, andalsothepreparation ofcalculations andsocial andeconomic forecasts of
implications oftheproposed changes tothetaxsystem.
Itisintended toconsider, bytheendof1996, partsII-IVofthedraftTaxCode andtointroduce
them early thenextyeartotheState Duma.
Question 152
Theresponse toquestion 53(WT/ACC/RUS/9) citesthenewFederal LawNo.23-FZ “OnExcise
Duties ”of7March 1996, which provides asignificant steptoward amore uniform system of
excise taxassessment withrespect todomestic andimported items, andapplication ofasingle
taxrate. Theresponse toquestion 102states thatanewdraft Federal Law provides forthe
introduction ofthesame excise rates fordomestic andimported goods.
(a) Theresponse toquestion 53isunclear astowhen theunification ofexcise taxes willbe
complete. What isthestatus ofthenewdraft Federal Law? Please outline itsprovisions
astheyrelate toArticle IIIoftheGATT 1994 (national treatment intheapplication of
domestic taxation) andtheWTO Agreement onSubsidies andCountervailing Measures.WT/ACC/RUS/13/Add.1
Page31
(b) Please list,byHStariff linenumber, thegoods subject toexcise taxes under thenewdraft
Federal Law, and
Answer
Federal LawNo.23-FZ "OnExcises", dated 7March 1996, provides forthelevying ofexcises
onthefollowing products: ethanol fromallkinds ofrawmaterials; edible alcohol; winespirit, vodka,
liquors, brandy, sparkling wine, natural wine, andother alcoholic products; beerandtobacco products;
jewellery; motor benzine; cars(other thanmanual-control cars); andindividual categories ofminerals.
Thelistofexcisable products nolonger includes cartires, trucks withacarrying capacity ofunder
1.25tons, furproducts, natural leather garments, cutglass, yachts, launches, hunting rifles, carpets,
andrugs.
Thefulllistofexcisable products andtheirrates, along withtheirHStariff linenumbers, is
found intheLaw"OnExcises", which hasbeensubmitted totheWTO Secretariat.
Excise ratesonRussian-made excisable products donotexceed 85percent(vodka andliquors).
Since thetaxable turnover fordomestic excisable products isdetermined onthebasisoftheapplicable
excise ratesandex-works prices inclusive ofexcises, while thatforimports isdetermined onthebasis
ofthecustoms value oftherespective goods, which isexclusive ofexcises, excise rates forsome
categories ofexcisable imports (alcoholic products, beer, tobacco products, andcars)arehigher than
those applied tosimilar Russian goods. Inpractice, thismeans thattheexcise taxburden onimported
products, asarule,areinaggregate nohigher thanonsimilar Russian goods.
Excisesonalcohol,wine,vodka,beer,andtobaccoproductsimportedintotheRussianFederation
arecurrently charged atspecific rateswhich areexpressed infixedmonetary units(ECUs) perphysical
amount ofthecorresponding goods.
Therateofexcises onRussian-built carsstands at5percentandtheratesofexcises onmotor
vehicles imported intoRussia range between 10-25 percent,depending ontheirengine displacements.
TheStateDuma oftheRussian Federation iscurrently considering adraftlawonchanges and
additions totheFederal Law"OnExcises", which provides forauniform procedure forthelevying
ofexcises onRussian andimported products.
Question 153
Theresponse toquestion 98(WT/ACC/RUS/9) states thatthemaximum rateforimport customs
duties is30percentexcept forluxury items, tobacco products, alcoholic beverages andarms.
Theresponse toquestion 53citesthenewFederal LawNo.23-FZ “OnExcise Duties ”ofMarch
7,1996which envisages thatcarswillbesubject toanexcise taxof5percentandthatfooditems,
except forbeer, alcohol andtobacco willbeexempt from excise tax.
(a) Does the5percentexcise taxrateoncarsapply onlytoimported items? Ifnot,what
istheratefordomestic items? Does the5percentexcise taxapply toallmotor vehicles?
(b) How arearms treated under thenewFederal LawNo.23-FZ?
(c) What aretheenvisaged excise taxrates forbeer, alcohol andtobacco?WT/ACC/RUS/13/Add.1
Page32
Answer
SeeAnswer 152herein.
Question 154
Theresponse toQuestion 51(WT/ACC/RUS/9) indicates thattheVAT is10percent, butinthe
titleofthelawreferenced inthisquestion, itindicates thattheVAT is100percent.
Please confirm thattheVAT inRussia is10percentandthatthe100percentfigure isa
typographical error.
Answer
Thecorrect figure is10percent.
Question 155
Welookforward toreceiving acompleted submission ofDocument WT/ACC/4 outlining Russia ’s
agricultural subsidy policies overthelastthree years. Thisdocument should answer many of
thequestions posed toRussia about support provided toagricultural producers.
WenotethatRussia hasprovided useful information inWT/ACC/RUS 9.Inthisregard, we
appreciate theinformation provided inreplies 34,35,36,etc.Wewillcompare thisinformation
withthemore detailed treatment required forWT/ACC/4 asweevaluate Russia ’sagricultural
system.WealsolookforwardtoreceivinginformationonRussia’sintentionsforfutureagricultural
policies, including thegradual replacement ofproduction subsidies withconsumer subsidies.
Answer
Adocument describing thesystem forsubsidizing agriculture onthebasisofrecommendations
contained inWT/ACC/4 hasbeensubmitted bytheRussian delegation totheWTO Secretariat.
Question 156
Theresponse toquestion 360(WT/ACC/RUS/9) references theresponse toquestion 38which
addresses calculation ofAMS. Thiswould seem tobeanincorrect reference.
Please provide astatement regarding Russia 'sprogress onitslegislative orregulatory approach
tocompatibility withtheWTO Agreement onSubsidies andCountervailing Measures.
Answer
TheRussian Federation, Decree oftheMinistry ofForeign Economic Relations, No.1000
of21December 1995 “OntheTemporary Procedure forConducting anInvestigation Prior to
Introduction ofProtective Measures ”setsouttheprocedures fortheconduct ofacountervailing duty
investigation which aregenerally consistent withtheprinciples oftheWTO Agreement onSubsidies
andCountervailing Measures. AcopyofthisDecree hasalready beenprovided totheWTO Secretariat.
Adraftlaw“OnMeasures toProtect theEconomy orInterests ofRussia During Foreign Trade ”passed
thelegislature butwasrecently vetoed bythePresident oftheRussian Federation duetoconcerns about
itsconsistency withtheobligations oftheWTO Agreements. Itiscurrently being reviewed toaccount
forremarks made bythePresident, andtoinclude alltheprincipal provisions oftheWTO AgreementWT/ACC/RUS/13/Add.1
Page33
onSubsidies andCountervailing Measures. Forinformation onthesystem ofdomestic support for
agriculture intheRussian Federation, seethedocument andthenon-paper onthissubject which have
beencirculated toMembers oftheWorking Party.
Question 157
TheWTOTRIMsAgreementprohibitstheuseofinvestmentmeasuresinconsistentwithArticlesIII
andXIoftheGATT of1994. Wewould appreciate additional information inthefollowing areas:
With regard totheresponse toquestion 65(WT/ACC/RUS/9), could wehaveacopyofResolution
No.324aswell?
Answer
Resolution oftheGovernment oftheRussian Federation No.324“OntheComprehensive Plan
ofAction fortheGovernment oftheRussian Federation fortheImplementation in1996oftheRussian
Presidential Address totheFederal Assembly Entitled “Russia forWhich WeAreResponsible (On
theCurrent Situation intheCountry andMajor Developments inRussian Policy) ”of22March 1996
wassubmitted totheWTO Secretariat.
Question 158
With respect totheresponse toquestion 67(WT/ACC/RUS/9): What isthepurpose oftheban
onforeign investment intheproduction ofalcoholic beverages?
Answer
Russian legislation atpresent doesnotcontain anyprohibitions onforeign investment inthe
production ofalcoholic drinks.
Question 159
Initsresponse toquestion 94(WT/ACC/RUS/9), Russia states thatregional executive bodies are
authorized to,buthave notyetapplied measures that, encourage regional export bygranting
taxprivileges tolocal operators intheform ofpartial orcomplete taxholidays withrespect to
regional orlocal taxes orwithrespect totheshare ofthefederal profit taxwhich istobepaid
tothelocal budget.
(a) InWT/ACC/RUS/5, Russia stated thatArticle 71oftheConstitution gives thecentral
government authority toregulate foreign investment regulations, andthatnoregional
lawcould belawfully implemented contrary tothelawsoftheRussian Federation inthis
area. Doesthatmean thatRussia willensure thatregional measures toencourage exports
thatareinconflict withWTO provisions?
(b) Weneedinformation ontheimplementation ofthese regional measures. When doesRussia
anticipate thatthese measures willbeimplemented bytheregional executive bodies? Do
anyofthese regional proposals include export requirements toqualify forthebenefits?
(c) Arethese measures available toforeign-owned entities aswellastodomestic private and
public enterprises?WT/ACC/RUS/13/Add.1
Page34
(d) Please discuss these measures inthecontext oftheWTO Agreement onSubsidy and
Countervailing Measures (SCM) andArticle XXIV:12 oftheGATT 1994.
Answer
TheRussian Federation shallcontinue tosupport theimplementation ofonlythose measures
undertaken byregional authorities toencourage exports which areconsistent withWTO provisions.
Question 160
Wehave seenpress reports thattheRepublic ofTatarstan hasintroduced measures toregulate
(among other things) theimport andsaleofalcoholic beverages thatappear tobeinconsistent
withWTO provisions, e.g.,quantitative restrictions andspecial import taxes.
CanRussia confirm this? How doesRussia plantobring suchactions ofsub-central authorities
within theRussian Federation intoWTO conformity?
Answer
Regarding themeasures taken bytheRepublic ofTatarstan, theRussian Delegation advises
thatsuchmeasures areexclusively concerned withtheproduction ofalcohol andvodka, andarein
accordance withthenorms established bytheFederal Law"OntheState Regulation ofProduction
andCirculation ofEthyl Alcohol andAlcoholic Products. ”
Question 161
Theresponse toquestion 98(WT/ACC/RUS/9) indicates thatthemaximum tariff rateformost
goods is30percentofthecustoms value.
Could Russia confirm thatthere arenospecific tariff rates onthose products which result inan
effective tariff rateofmore than30percent? Thatistosay,arethere anyimport products where,
ifthespecific tariff rateiscalculated asapercentage ofthevalue oftheproduct, itresults in
atariff value greater than30percent?
Answer
Thecustoms import tariffoftheRussian Federation formostgoods presently doesnotprovide
foranyadvalorem dutyratesinexcess of30percent.Examples oflimited exceptions include alcohol
therateforwhich is100percent, andplaying cards therateforwhich is40percent. Whether any
specific tariffrate,calculated asapercentage ofthevalue oftheproduct results inatariffvalue greater
than30percentwilldepend upon theentered value ofthespecific product. Seethemostup-to-date
unofficial English translation oftheCustoms Tariff oftheRussian Federation.
Question 162
WillRussia please supply theschedule ofitscurrent applied tariffs fortheWorking Party in
electronic media aswellashard copy?
Answer
Thecustoms tariff oftheRussian Federation, including existing rates, hasbeenprovided by
theRussian delegation totheWTO Secretariat bothonhardcopyandondiskette.WT/ACC/RUS/13/Add.1
Page35
Question 163
What isthestatus ofRussia 'sefforts complete thequestionnaire ontheimplementation and
administration oftheCustoms Valuation Agreement?
Answer
Thedocument"InformationontheImplementationandAdministrationoftheCustomsValuation
Agreement," completed onthebasis ofWT/ACC/1, Annex 4,hasbeensubmitted bytheRussian
delegation totheWTO Secretariat.
Question 164
With regard totheresponse toquestion 103,weappreciate Russia providing alistoffoodstuffs
subject tothe10percentvalue-added tax.Isthisliststillcurrent andistherateofthevalue-added
taxstill10percent?
Answer
Thelistoffoodstuffs subject tovalue-added taxattherateof10percent, which hasbeen
approved byRussian Government Resolution No.1120, dated 13November 1995, wasamended in
July1996toextend toseatroutwhich isnowalsosubject toVAT at10percent(Russian Government
Resolution No.849,dated 18July1996).
Question 165
Would Russia please givetheWorking Party:
(a) Abrief summary oftheprovisions?
(b) Acopyofitsproposedlegislationonsafeguard,anti-dumping,andcountervailingmeasures?
(c) What types ofmeasures areenvisioned?
(d) Please provide astatus report onthepassage ofthislegislation.
Answer
Thecorresponding documents willbesubmitted iftheybecome law.
Question 166
Concerning recent indications ofpossible safeguard actions bytheRussian Government toprotect
domestic industries:
(a) Please clarify ifformal safeguard investigations have begun with regard toimported
alcoholic beverages, textiles, cashregisters, lighting products, oranyother imports.
(b) Ifinvestigations have been initiated, please indicate where anotice oftheinitiation of
investigation waspublished. Have interested parties -such asthegovernments ofthe
counties exporting suchproducts, firms, andRussian importers -been notified? Ifso,
when andbywhat means?WT/ACC/RUS/13/Add.1
Page36
(c) Willthefindings andprocedures ofthese investigations bemade available tothepublic,
ortotheinterested parties upon request? Aretheresults ofsuchsafeguard proceedings
subject toappeal inRussian courts? Ifso,please indicate thecourt offirstappeal and
outline theappeal process.
Answer
(a)&(b) Theinvestigations mentioned inthequestion havebeenlaunched officially. Allessential
details about themhavebeenpublished andtheirresults havebeensubmitted totheWTO Secretariat.
Question 166A
Does Russia stillapply export duties totrade? Ifso,towhat extent have such measures been
eliminated ontrade withpreferential trading partners?
Answer
Russia doesnotapply export duties onitsforeign trade.
Question 167
Please explain howimport licensing isusedaspartofRussia ’sSPSregime andadescription of
thedisciplines oftheSPSAgreement (e.g., ascertain WTO Members havesubmitted totheSPS
Committee).
Answer
Theissuance ofanimport licence forreasons ofprotecting thehealth ofthepopulation, flora
andfauna oftheRussian Federation isdescribed intheImport Licensing Questionnaire,
WT/ACC/RUS/10. Inaddition, documents which havebeensubmitted bytheRussian Federation for
thefourth session oftheWorking Party onnon-tariff measures (WT/ACC/SPEC/RUS/1 and
WT/ACC/SPEC/RUS/2) provide acomprehensive listing ofallnon-tariff measures upon imports.
Question 168
Russia hasstated intheresponse toquestion 350thatitdoes notmaintain anyquantitative
restrictions, suchasimport bans orquotas, onimports.
(a) Does Russia usetariff-rate quotas, oranyother policy thatlimits thequantity ofimports
byother means?
(b) CanRussia confirm thatitwillnotintroduce anyquantitative measures torestrict imports
except inlinewiththeprovisions oftheWTO?
Answer
TheRussian Federation hasnotyetapplied tariff-rate quotas. TheRussian Federation does
notplantoemploy anyquantitative import restrictions contradicting WTO provisions. Seealsothe
twoseparate documents onNon-Tariff Measures which havebeensubmitted totheWTO Secretariat.WT/ACC/RUS/13/Add.1
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Question 169
WT/ACC/RUS/10 provides detailed information ontherequirements andprocedures forobtaining
alicence from MFER. However, there isnoinformation regarding therequirements forobtaining
letter ofconsent fortheissuance ofthelicence from thecorresponding ministry (agency). These
requirements areimportant since Russia states insection III.2(d) that“Animporter, thus, needs,
inpractice, toapproach consecutively twoadministrative organs. ”
Please provide detailed information ontherequirements forobtaining consent from these
“corresponding ministries ”.
Answer
Therequested information willbeprovided inthecourse oftheWorking Party'smeeting and
bilateral consultations.
Question 170
Weunderstand thatRussia iscurrently drafting several newlaws tocreate agovernment
procurement system.
Please describe thenewsystem withreference totheprocedural andsubstantive provisions of
theWTO Agreement onGovernment Procurement.
Wecontinue tosupport Russia 'saccession totheAgreement onGovernment Procurement inthe
course ofitsaccession totheWTO.
Intheinterim, weencourage Russia tousetheprovisions andprocedures outlined intheAgreement
asabasis fordeveloping itsprocurement regime.
Answer
MattersrelatedtothecompetitiveplacementofordershavebeenpreviouslyaddressedbyRussian
GovernmentresolutionsdealingwithpurchasesforStateneeds.(SeeWT/ACC/RUS/2,WT/ACC/RUS/4,
andWT/ACC/RUS/9).
AdraftoftheFederalLaw"OntheOrganizationofTendersforthePurchasesofGoods,Building
Works, andServices toMeetStateNeeds" covers those arrangements related tothepurchases ofgoods,
building works, andservices forState needs which remain unregulated inPartIIoftheCivil Code
oftheRussian Federation andinother lawsongovernment purchases.
Although thisisonlyadraft law,ifenacted itwilllaythelegal groundwork facilitating
transparent, free,andcompetitive acquisitions inevery economic sector, based onanobjective and
accountable system. Ifenacted, thelawwillestablish general legal andeconomic principles for
organizing tenders forthepurchase ofgoods, building works, andservices tosatisfy State needs. It
isbased onprinciples recognized throughout theworld, suchastheModel LawoftheU.N. Commission
onInternational Trade Law, andtheGATT Agreement onGovernment Procurement.
While taking Russia 'spresent conditions intoaccount, thedraftlawincorporates many ofthe
above documents 'underlying ideas. These include, among others, thefundamental principle ofopen
competitionduringtendersandproceduresassociatedwithsuchspecificmethodsasbidding,double-phase
bidding, specialized private bidding, etc.WT/ACC/RUS/13/Add.1
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Ifenacted, thelawshould encourage broad-based competition, andguarantee abetter value
forthegovernment 'smoney.
Question 171
With regard totheresponse toquestion 106:
What isthestatus oftheDraft Law "OntheOrganization ofTenders toPurchase Goods,
Construction Works andServices toMeet State Needs"? Please outline theprovisions ofthisdraft
legislation asitnowstands.
Ifthislawhasbeen passed, please provide acopy totheWTO Secretariat.
Answer
SeeAnswer 170herein.
Question 172
Would Russia please provide theWTO Secretariat withcopies ofthedocuments referenced in
itsreply toquestion 26:
"Federal LawNo60-FZ, OnProduct Supplies forFederal Needs, dated 13December 1994" and
"FederalDocumentOnStateProjectionsandProgrammesfortheSocialandEconomicDevelopment
oftheRussian Federation"? (reply 26)
Would Russia alsoplease provide theWorking Party with the"Resolution oftheRussian
Government No.594,OnImplementation oftheFederal Law “OnDeliveries ofProducts for
Federal State Needs ”,of26June 1995", referred toinitsreply toquestion 111?
Answer
These legislative actshavebeenprovided bytheRussian delegation totheWTO Secretariat.
Question 173
Theresponse toquestions 107and109(WT/ACC/RUS/9) indicate thatthecompilation ofa
comprehensive listofimported items furnished through theFederal Budget andrelevant statistics
withregard tothese purchases arepending.
What isthestatus ofcollecting thisinformation? Please provide thisinformation ifitisavailable.
Answer
Theresponses toQuestions 107and109(WT/ACC/RUS/9) donotindicate thatthisinformation
isbeing collected.
Question 174
Theprocurement lawsandprocedures referenced inreplies 26and111(WT/ACC/RUS/9) pertain
toprocurement forState needs.WT/ACC/RUS/13/Add.1
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Dothesame lawsandprovisions govern howRussian ministries andagencies procure goods and
services fortheir ownneeds?
Answer
Atpresent intheRussian Federation there arenouniform rules regulating thepurchases by
Statebodies(ministries,institutions)ofgoodsfortheirownneeds.Thepurchaseproceduresarespecified
forevery particular casethrough application ofmarket mechanisms andmechanisms fortender selection
ofagents oftransactions.
Question 175
Forsituations where aprivate orquasi-private entity (such asatrading house) procures goods
orservices onbehalf oftheState, please describe theprocurement lawsandprocedures thatgovern
these procurement.
Answer
Seereply 174herein.
Question 176
Reply 125indicates thatadraft law“OntheQuality andSafety ofFoodstuffs ”isunder
consideration. What isthestatus ofthatlegislation?
Answer
Draft law“OntheQuality andSafety ofFoodstuffs ”isstillunder consideration.
Question 177
Could Russia please provide acomprehensive statement onitsstandards regime addressing the
provisions oftheWTO Agreement onTechnical Barriers toTrade (TBT) andrelated WTO
obligations?
Answer
Arrangements inplace inRussia withrespect tostandards aresetforth inLawNo.5154-1
"OnStandardization", dated 10June1993, which laysthelegalgroundwork forstandardization and
defines measures ofgovernment protection fortheinterests ofconsumers andtheState bydrawing
upandenforcing regulatory actsonstandardization.
ThetextofthisLawwassubmitted totheWTO Secretariat inMarch 1994(SeeL/7410/Add.1).
Seealsoanswer 178herein.
Question 178
Could Russia please prepare adraft response totheWTO questionnaire ontheimplementation
oftheTBT Agreement, asprovided forinWT/TBT/2, forreview atthenextWorking Party
meeting?WT/ACC/RUS/13/Add.1
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Answer
Since theagenda forthefourth meeting oftheWorking Party onRussia 'saccession totheWTO
hasalready beenapproved, theRussian delegation deems itmost important toprepare background
materials anddocuments fortheagreed upon agenda, andtomore carefully prepare material forthis
subject forthenextWorking Party'smeeting which willdealmore specifically withproblems related
totechnical barriers totrade.
Question 179
Inresponse toquestion 129(WT/ACC/RUS/9), Russia states thatitplans topublish recommended
feestructures formandatory conformity assessment procedures forproducts andservices in1996.
Hasthisdocument been published? Ifso,please provide theWTO Secretariat withacopy for
review bytheWorking Party.
Answer
Thedocument "Payment forWork Done intheCertification ofProducts andServices"
(R50.3.001-960) waspublished andentered intoforce on18March 1996. Ithasbeenprovided to
theWTO Secretariat.
Question 180
Theresponse toquestion 133(WT/ACC/RUS/9) wasnotcomplete. Please provide information
onthetypes ofrisks which thecertification procedure isaddressing andthenature ofthe
conformity assessment procedure (e.g., inspection, production oftestreports, product
type-approval, quality systems certification, orcombinations ofthese).
Answer
Seeanswer 20indocument WT/ACC/RUS/13.
Question 181
Theresponsetoquestion135(WT/ACC/RUS/9)indicatesthattheRussianCommitteeonCommerce
exercises State control through "...pricing order andregulations...".
What doesthephrase “pricing order andregulations ”refer to?
Answer
Thisphrase applies toproducts onthelistapproved byRussian Government Resolution No.239
"OnMeasures toStreamline theState Regulation ofPrices," dated 7March 1995, which hasbeen
submitted totheWTO Secretariat.
Question 182
Weunderstand thatRussia isveryclose toestablishing fullforeign exchange convertibility on
thecurrent account. Wewelcome Russia 'scommitment toaccept Article 8obligations under
theIMF Agreement. Itisalarge stepforward insecuring thebasis foraWTO-compatible
economic andtrade regime, andwillencourage investment andaccelerated economic growth.WT/ACC/RUS/13/Add.1
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Answer
TheRussian delegation takes noteofthese comments.
Question 183
Regarding progress towards newlaws:
(a) Could Russia giveanupdate onthelegislative initiatives referred toinWT/ACC/RUS/9?
Inparticular, please provide additional information onthefollowing:
(b) Weunderstand thatthe“LawonFood Quality andSafety ”wassubmitted totheDuma
bytheRussian Government mid-May. Could Russia make atranslated draft available
totheSecretariat forWPreview?
(c) Thedraft LawonCriminal Penalties forviolations ofintellectual property rights hasbeen
before theDuma forsome time. Could theRussian delegation giveusastatus report?
Answer
(a) Seethedocument "OnLegislation Development" which hasbeensubmitted bytheRussian
delegation totheWTO Secretariat.
(b) Seeanswer 21indocument WT/ACC/RUS/13.
(c) Seeanswer 47indocument WT/ACC/RUS/13.
Question 184
Could weplease have acopy ofRussia ’scurrent tariff schedule inelectronic media?
Answer
Thecustoms tariff oftheRussian Federation, including existing rates, hasbeenprovided by
theRussian delegation totheWTO Secretariat bothonhardcopyandondiskette.