RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/114 
17 March 2004 
 (04-1178) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Additional Questions and Replies  
  
 
 The Governmental Commission on Ukraine' s Accession has submitted the following 
responses to additional questions from members of the Working Party with the request that it be 
circulated.  
_______________ 
 
   WT/ACC/UKR/114 
 Page i 
 
 
TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......1  
- State Ownership and Privatization .........................................................................................2  
- Pricing Policies ............................................................................................................... ...........3  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ......................................8  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................10  
- Trading Rights ................................................................................................................. .......10  
A. IMPORT REGULATION......................................................................................................11  
- Customs Tariff ................................................................................................................. .......11  
- Other duties and charges levied on imports but not on domestic production...................12  
- Tariff rate quotas, tariff exemptions.....................................................................................19  
- Fees and charges for services rendered.................................................................................20  
- Application of internal taxes to imports ...............................................................................22  
- VAT............................................................................................................................ ..............25  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............26  
- Customs valuation.............................................................................................................. .....31  
- Other customs formalities ...................................................................................................... 32 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................33  
B. EXPORT REGULATIONS ...................................................................................................39  
- Export rest rictions ............................................................................................................ ......40  
- Export Licensing Procedures.................................................................................................44  
- Export subsidies ............................................................................................................... .......45  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................45  
- Industrial policy, including subsidies....................................................................................45  
- Technical barriers to trade, sanita ry and phytosanitary measures ...................................49  
- Sanitary and phytosanitary measures...................................................................................52  
- Trade-related investment measures ......................................................................................52  
- State-trading entities......................................................................................................... ......53  
- Free zones, special economic areas........................................................................................54  
- Government procurement......................................................................................................56  
- Transit........................................................................................................................ ..............56  
- Agricultural policies.......................................................................................................... ......59  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................65  WT/ACC/UKR/114 
Page ii  
 
POLICIES AFFECTING TRADE IN SERVICES...........................................................................65
 
- Trade Agreements............................................................................................................... ....66  
ANNEX 1 ........................................................................................................................ ......................82   WT/ACC/UKR/114 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Foreign Exchange and Payments Question 1 We note a reference to Article 3 of the Law of Ukraine on the Procedure of Payments in Foreign 
Currency.  In particular, Ukraine requires that purchased foreign currency must be remitted 
by a resident in pursuance of its obligations to a non-resident within five business days following 
the date of such amount entering into the cu rrency account of the resident. This regulation 
accords imported goods less favourable treatment than goods produced domestically and hence 
violates Article III:4 of GATT.   
We request that Ukraine abolish this requirement. 
Answer:
 
Article 3 of the Law of Ukraine "On the Procedure of Payments in Foreign Currency", which requires 
that purchased foreign currency must be remitted by a resident in pursuance of its obligations to a 
non-resident within five business days following th e date of such amount entering into the currency 
account of the resident, does not impose less favour able treatment for residents paying for imported 
goods as compared with payments for domestically produced goods, since it does not restrict the 
residents' right to make payments with non-residents in terms set forth in contracts. 
Residents can buy necessary foreign currency with na tional currency, and within the term set by the 
agreement transfer this money to the foreign s upplier of the goods, including the day of its purchase, 
but not later than 5 days after the date of purchase. 
In addition, we inform that during numerous missi ons of the International Monetary Fund, the most 
recent of which took place on 16-20 December 2003, the above mentioned provision of the Law of 
Ukraine "On the Procedure of Payments in Foreig n Currency" did not give rise to questions from 
experts from the IMF. 
- Investment Regime 
Question 2 
We seek clarification of several aspects of Uk raine's investment regime, and how they might 
impact on its ability to schedule commitments in the services sector. In paragraph 15, it is noted 
that foreign investment "may be made in any object, except those prohibited by the Laws of Ukraine".  We request a detailed list of prohibited activities under Ukrainian Law. 
Further in paragraph 15 it stated that registratio n of foreign investment may be ‘refused only 
when the investment would contradict Ukraine's le gislation'. We seek clarification of cases when 
investment would ‘contradict' Ukraine' s legislation and how they are assessed. 
Answer:
 
According to the Law of Ukraine "On Invest ment Activity" No. 1560-XII of 18 January 1991 
investment is forbidden into objects, establishmen t and utilization of which contradicts to sanitary, 
hygienic, radiological, ecological, architectural and other norms of national legislation, violates rights 
and interests of citizens, business entities and state pr otected by the law.  There is no specific list of 
enterprises forbidden for in vestment in Ukraine.  WT/ACC/UKR/114 
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 - State Ownership and Privatization 
Question 3 We kindly ask representatives of Ukrainian delegation to specify the meaning of an enterprise, 
which is transferred into collective form of ownership.  
Paragraph 16 does not mention the share of pri vatized enterprises among all the enterprises 
registered within State Register. Please provide us with that information regarding 
abovementioned share of privatized enterprises, and also with the information regarding the share of capital, following the example of  Table 2 regarding industrial enterprises. 
Answer:
  
The revised version of paragraphs 16 and 17 should read as follows: 
16. In response to questions concerning Ukra ine's privatization programme, the portion of 
enterprises privatized, in the process of priva tization, and still state-owned and the future 
plans including the on nature and size of those parts of the economy that would not be privatized, the representative of Ukraine said th at during the years of privatization, as of 
1 January 2003, 83,953 entities changed the form of ownership, including 61,293 of 
communal entities and 22,660 of state entities.  Almost 24,000 private enterprises had been 
formed.  
By types of economic activity, the privatization process had covered principally wholesale 
and retail trading businesses, including businesses engaged in sales of motor vehicles and motor vehicle repair services (33,453); rendering of collective, public and personal services 
(14,040); industrial (8,126) sectors.  
One hundred and seventy nine large state-owne d enterprises with capital assets valued at 
more than UAH 170 million have been privati zed over the past ten years. Not less than 
40 per cent of the shares in 132 companies had b een sold.  As of the beginning of 2003, more 
than 11.5 thousand medium- and large-size enterpri ses were privatized with depth of not less 
than 70 per cent, among which almost 47 per cent constitute industrial enterprises.  
Table 1
 
Plans for the Future - Privatization of Enterprises in 2003  
Sectors of the economy Number of 
enterprises whose 
controlling or 
blocking packages of 
shares are planned for 
sale on the stock 
market and at 
auctions Balance sheet value 
of capital assets, 
million UAH Number of employees, 
persons 
Oil and gas complex  4 45.94 29,675 
Energy sector  3 167.10 10,985 
Agriculture  32 329.76 6,662 
Metallurgy  9 3,373.11 70,255 
Machine building and metal-
working  49 154,139 96,601 
Aircraft industry  1 20.84 854 
Shipbuilding industry 2 6.22 6,167  WT/ACC/UKR/114 
 Page 3 
 
 
 Sectors of the economy Number of 
enterprises whose 
controlling or 
blocking packages of 
shares are planned for 
sale on the stock 
market and at 
auctions Balance sheet value 
of capital assets, 
million UAH Number of employees, 
persons 
Sector of communications devices  4 392.54 4,213 
Chemical industry 6 1,947.94 11,510 
Petrochemical industry 3 73.86 6,002 
Transport  27 203.86 6,015 
  
17. The representative of Ukraine said that acco rding to the data of the State Statistics 
Committee of Ukraine the output of industrial en terprises that changed their ownership form 
was UAH 66.6 million as of 1 October 2002, which is 53.9 per cent of the total output.  The 
number of joint-stock companies set up on the basis of state enterprises and the share of 
private capital in total capital may be seen in the following table. 
Table 2  
Number of enterprises (as of 1 April 2003)  
Percentage of private capital in total capital Industry Total up to 25% 25% to 50% 50% to 75% 75% to 100% 
Power engineering  34 8 10 7 9 
Fuel industry 13 4 1 2 6 
Ferrous metallurgy 96 8 5 7 76 
Chemical and petrochemical 108 14 7 9 78 
Machine building and metal 
processing 1,254 91 61 114 988 
Woodwork, and pulp and 
paper industry 171 9 2 5 155 
Light industry  221  13 3 9 196 
Food industry  842 65 6 46 725 
Transport  909 57 5 128 719 
Construction  78 7     71 
Other industries  4,526 377 67 420 3,662 
Total:  8,252 653 167  747  6,685  
  
- Pricing Policies 
Question 4 
We kindly ask Ukraine to reduce the extent of pricing control and to abolish market forces' 
limiting provisions, that are provided in Working Party's Draft Report, Annex 4, and to minimize the influence of state in the regulation of market. 
We ask to reduce the pricing regulation and to en sure pricing policies to be in accordance with 
Article 9, III of General Agreement on Tariffs and Trade, 1994 (GATT 1994). WT/ACC/UKR/114 
Page 4  
 
 Answer
:  
Ukraine will ensure the compliance of pricing polic ies with Article 9, III of General Agreement on 
Tariffs and Trade, 1994 (GATT 1994) 
Question 5 
Minimum prices on imported or local goods – the attached table (Annex 1) does not make clear 
whether price regulations are a pplied to local goods, imported goods or both.  We request 
Ukraine clarify the scope of application of its price control measures. 
Answer:  
State regulation of prices applies to goods that are sold  in the territory of Ukra ine, irrespective of their 
origin. 
Question 6 Minimum prices for imported vodka and alcoholic products – the application of minimum 
prices on imported products violates Articles XI of GATT 1994. We request that Ukraine abolish these requirements. 
Answer:
 
Ukraine does not regard the application of minimum prices to imported products as a violation of the 
provisions of Article XI GATT 1994.  Ukraine un derstands its commitments as a Member of the 
WTO.  Ukraine will continue to act in strict compliance with the commitments it assumes in the 
course of preparing the Report of the Working Party. 
Question 7 
Minimum price regulations on domestic beet and ref ined sugar.  In particular, we wish to note 
that minimum internal prices for refined sugar and beet sugar are employed by Ukraine as a 
means of providing a subsidy to domestic beet su gar production and refining of local beet sugar 
in Ukraine.  The use of such minimum prices in  parallel with the restrictions applied to imports 
of raw cane sugar (i.e., requirement that sugar  produced from imported raw cane sugar be 
exported) violate GATT Article III:4 by accord ing considerably less favourable treatment to 
imported raw sugar vis-à-vis its domestic competitor – sugar of beet origin.)  Furthermore, 
under Ukraine's minimum price policies (as a mean s of delivering a subsidy to sugar producers) 
support is provided to sugar processors contingent on the use of local input (beet sugar).  This 
appears to constitute a prohibited subsidy in th e meaning of Article 3.1(b) of the Agreement on 
Subsidies and Countervailing Measures, as well as a prohibited TRIM in the meaning of Article 1(a). We request that Ukraine acknowledge the WTO inconsistencies of its minimum 
price regulations in relation to sugar and agree to remove them. 
Answer:
  
Ukraine cannot acknowledge any inconsistencies in inte rnal regulations of the sugar market relating to 
the setting of minimum prices for sugar with the provisions of Article III:4 GATT, as is asserted by this Member.  
Raw can sugar is imported into Ukraine for furt her processing (refining) and production of processed 
(refined) sugar, i.e., it is not a finished product, but  a raw material which is not supplied directly for 
sale to retail and wholesale stores as it is the case with sugar.  In such a situation, internal regulations  WT/ACC/UKR/114 
 Page 5 
 
 
 of the sugar market must comply with Article I ІІ.5 GATT 1947:   "No contracting party shall establish 
or maintain any internal quantitative regulation rel ating to the mixture, processing or use of products 
in specified amounts or proportions which requires, directly or indirectly, that any specified amount 
or proportion of any product which is the subject of the regulation must be supplied from domestic 
sources".  Ukraine believes that internal regulations of  the sugar market fully comply with this 
Article of GATT.  
Pursuant to the Law of Ukraine "On State Re gulation of Sugar Production and Sale", dated 
17 June 1999, under No. 758-XIV, the minimum price for sugar is the lower level of the price at the time of conclusion of sale-purchase agreements on Uk raine's domestic market within the limit of the 
A Quota, whereas the quota of sugar supply onto the domestic market (the "A Quota") means a 
maximum quantity of sugar to be supplied onto the domestic market as from the 1 September of the 
current year till the 1 September of next year, in or der to satisfy domestic needs.  Ukraine's setting of 
minimum prices for sugar is in compliance with Article 6 and Annex 3:8 of the WTO Agreement on Agriculture.  The minimum prices for sugar have an  impact on an increase of profitability of sugar 
beet production in Ukraine.  Ukraine does not see in  this measure any discriminatory conditions with 
respect to the internal sale and purchase of raw cane sugar and, on the contrary, these minimum prices 
for sugar, which are set at a level that is two tim es higher than the value of 1 ton of imported raw 
sugar, create a highly favourable situation for ra w cane sugar imports on the domestic sugar market, 
even if a 50 per cent import duty, which was agreed  during negotiations, is paid on imports in excess 
of the tariff quota.  
Besides, minimum prices, which are set to support producers of refined sugar, exist in other WTO 
Members, for example in the EU, through a mechan ism of intervention prices, and in the USA – for 
cane sugar through a mechanism of loan rates.  
As regards the existence in Ukraine of the prohib ited TRIMs measure in the meaning of Article 1(a), 
as is believed by this Member, through the setting of  minimum prices for sugar contingent on the use 
of local input (beet sugar), Ukraine would like to note that effective domest ic law in Ukraine that 
regulates the sugar market does not require "the pu rchase or use by an enterprise of products of 
domestic origin or from any domestic source, whether specified in terms of particular products, in 
terms of volume or value of produc ts, or in terms of a proportion of volume or value of its local 
production", as is indicated in paragraph 1( а) of the Annex to the TRIMs Agreement, which contains 
references to commitments with respect to nati onal treatment as is contemplated in Article Ш:4 
GATT 1994. 
As regards the prohibited subsidy in the meaning of  Article 3.1(b) of the Agreement on Subsidies and 
Countervailing Measures, Ukraine notifies that all matters relating to internal regulations of 
production of agricultural products (namely, setti ng of quotas for sugar production, setting of support 
prices, provision of domestic support/subsidies) are governed by the Articles of the Agreement on 
Agriculture.  The minimum prices for sugar in Ukra ine are set irrespective of which raw sugar such 
sugar is refined from – sugar beets or raw cane s ugar, but they have a direct impact upon Ukrainian 
domestic producers of sugar beets rather than upon producers of sugar cane, as sugar cane is not 
grown in the country.  If the nature and climate conditions allowed the Ukrainian producers to grow 
sugar cane instead of sugar beets, then effectiv e Ukrainian law would provide an economic benefit 
(subsidy) specifically to sugar cane rather than to sugar beets.  
At the same time, the liberal regime of regula tion of raw cane sugar imports through setting a tariff 
quota, as suggested by Ukraine, is in full compliance with the requirements set out in Article 4 of the 
Agreement on Agriculture.   
Ukraine sees the only (but indirect) inconsistency between the requirement of Ukrainian law and the 
WTO requirements concerning the requirement to ex port sugar refined from imported raw materials.  
Pursuant to Article 3.11 of the Law of Ukraine "On State Regulation of Sugar Production and Sale", WT/ACC/UKR/114 
Page 6  
 
 dated 17 June 1999, under No. 758-XIV, production of  sugar in Ukraine from imported raw materials 
is permitted exclusively on condition that finished products will be exported in full out of Ukraine 
within time periods specified by Ukrainian law.  Article XI:1 of GATT 1994 "General Elimination of 
Quantitative Restrictions" and Article 4 of the Ag reement on Agriculture "Market access" point out 
that: "No prohibitions or restrictions other than dutie s, taxes or other charges, whether made effective 
through quotas, import or export licenses or other measu res, shall be instituted or maintained by any 
contracting party on the importation of any product of  the territory of any other contracting party or 
on the exportation or sale for export of any product d estined for the territory of any other contracting 
party".  The government will prepare and offer co rresponding amendments to the Law of Ukraine "On 
State Regulation of Sugar Production and Sale" rega rding the abolishment of this requirement.  
Question 8 Ukraine should indicate whether the customs val ue of exported products subject to such 
"indicative prices" are based on such prices. 
Answer:
  
Pursuant to Article 274 of the Customs Code of Uk raine, dated 11 July 2002, under No. 92-IV, which 
entered info force as from 1 January 2004, in the even t that price restrictions are set for exportation of 
certain products (indicative prices, maximum levels of prices, prices set as a result of antidumping investigations etc.), the customs value of such pr oducts is determined – in case of their exportation 
from Ukraine – by the provisions setting forth procedures for applying the said restrictions. 
Question 9 
Ukraine should indicate any linkage of customs f ees and charges, licence fees, activity licensing 
requirements, internal taxes or other taxes or other trade-related fees, formalities or 
requirements, to the observance or non-observance of such indicative prices. 
Answer:
  
In accordance with the Regulation on the Methodolog y for Formation and Application of Indicative 
Prices, approved by Order No. 506 of the Ministry  of Foreign Economic Relations and Trade of 
Ukraine, dated 8 August 1996, under No. 506, there are no restrictions connected with application of 
indicative prices, except for inspections of: 
− compliance of prices for products if foreign economic agreements for such products are 
subject to registration or require a licence from the Ministry of Economy Ukraine  with indicative prices by specialists from the Ministry of Economy; and 
− compliance of prices for products if foreign economic agreements for such products are 
not subject to registration and do not requi re a licence from the Ministry of Economy 
Ukraine with indicative prices by specialis ts from customs authorities of Ukraine. 
Question 10 
If export prices are subject to any such requirements, bracketed paragraph 21 should include a 
legal reference to conformity with GATT Articles VIII and XI and any other relevant WTO provisions.  WT/ACC/UKR/114 
 Page 7 
 
 
 Answer:   
Ukraine understands its commitments as a Member of th e WTO.  Ukraine will continue to act in strict 
compliance with the commitments it assumes in the course of preparing the Report of the Working 
Party. 
Question 11 
There appear to be plans, and there may be meas ures in place, pursuant to the Agreement on 
Single Agricultural Market (SAM), to "coordinate .. pricing policies" in relation to agricultural 
products in the CIS area (paragraph 150).  
− Ukraine should include in this section deta ils of:  the provisions of the Agreement on 
Single Agricultural Market relating to pricing policies; the provisions of any agreements, protocols, understandings, la ws and regulations pursuant to this 
Agreement; and any measures, in force or planned, resulting there-from; and 
− Ukraine should also provide a full explanation the nature and purpose of 
coordinating pricing policies in the CIS.  Why were these provisions agreed, and what does Ukraine expect such coordination  of pricing policy to achieve?  Are the 
policies affected those relating to external pr ices or internal prices, or both?  Are the 
pricing measures applicable to trade invol ving parties to the Agreement, or trade 
with third countries as well?  Which products have been or will be affected?  How 
are the provisions reflected in Ukrain e's policies towards these products?  For 
example, are they reflected in any mandatory minimum internal prices, or price support policies, or "indicative export pr ices", or customs valuation measures, or 
anything else, and if so how?  If Uk raine has not been participating in the 
coordination of pricing policies because th e coordination process has been dormant, 
is it expecting to do so in the future in the event of these provisions being activated?  
Is Ukraine bound by the treaty or oth er instruments to participate in the 
coordination of pricing policy in the CIS area, or can it opt out while remaining under the treaty?  
Answer:
  
The Agreement on the Common Agrarian Market of the Commonwealth of Independent States 
(hereinafter referred to, as the "Agreement") was si gned on 6 March 1998.  The date of its entry into 
force for Ukraine is 29 January 2001.  The Agreemen t is intended to establish in a stage-by-stage 
manner the Common agrarian market of the State Members of the Commonwealth of Independent 
States, which will ensure the fre e movements of agricultural produc ts, foodstuffs, Research and 
Development products, technologies,  means of production and services  of domestic origin for the 
agricultural sector. 
The Common agrarian market shall be establishe d by the Parties on the basis of voluntarily assumed 
obligations and equality of rights.  Article 6 of  the Agreement provides that in the course of 
establishing the Common agrarian market the Parties sh all coordinate price policies and, at the stage 
of establishing the common customs territory, shall tran sfer to a conciliatory system for the regulation 
of prices for products and services pursuant to ma rket principles.  Howe ver, according to the 
reservation made by Ukraine at the time the Agreement was signed, the provisions of Article 6 regarding the establishment of the common cust oms territory shall not apply to Ukraine. WT/ACC/UKR/114 
Page 8  
 
 III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 12 This section would benefit from greater detail on the degree to wh ich WTO agreements will 
take precedence over national laws, and where administrative appeals in relation to 
implementation of those agreements can be hear d in Ukraine's legal/administrative system. We 
request that Ukraine provide this additional information.  
Answer:
 
- Regarding the matter of precedence of  the WTO Agreements over national laws  
Pursuant to Article 9 of the Ukrain ian Constitution, international treaties that are in force, and that are 
agreed to be binding by the Verkhovna Rada of Uk raine, are part of the national legislation of 
Ukraine. Article 17 of the Law of Ukraine "On In ternational Treaties of Ukraine" provides that 
international treaties concluded and duly ratified in  the form of a law shall be part of Ukraine's 
national legislation and shall be applied pursuant to procedures specified for provisions of national 
legislation. In the event that an international treat y of Ukraine, which has been concluded in the form 
of a law, sets out rules other than rules established by Ukrainian law, the ru les of the international 
treaty of Ukraine shall apply. 
Thus, the Agreements of the World Trade Organiza tion will become part of the national legislation 
upon Ukraine's accession to this Organization.  
- Regarding hearings of administrative appeals  
Pursuant to Article 55 of the Ukrainian Constitu tion, human and citizens' rights and freedoms are 
protected by the court.  Everyone is guaranteed the right to challenge in court the decisions, actions or 
omission of bodies of state power, bodies of local self-government, officials and officers.  After exhausting all domestic legal remedies,  everyone has the right to appeal for the protection of his or 
her rights and freedoms to the relevant international judicial institutions or to the relevant bodies of 
international organizations of which Uk raine is a member or participant.  
Pursuant to Article 287 of the Ukrainian Code on Ad ministrative Violations (hereinafter referred to 
as, the "Code"), a resolution in a case involving an administrative violation may be appealed by a person, against whom such resolution has been adopted, or an injured party.  
The resolution of a rayon, municipal district, city or inter-district court (judge), whereby an 
administrative sanction has been imposed, is fi nal and may not be appealed under procedures 
applicable to proceedings in cases involving admini strative violations, except as otherwise provided 
by laws of Ukraine.  
Pursuant to Article 288 of the of the Code, a reso lution in a case involving an administrative violation 
may be appealed:  
− a resolution of an administrative commission can be appealed to the executive committee 
of the competent Rada or with the rayon, municipal district, city or inter-district court whose decision is final;  
− a decision of the executive committee of a village , town or city Rada can be appealed to 
the applicable Rada or with the rayon, munici pal district, city or inter-district court whose 
decision is final; and  WT/ACC/UKR/114 
 Page 9 
 
 
 − a resolution of another government authority (officer) to impose an administrative 
sanction can be appealed to higher government authority (high-ranking officer) or with the rayon, municipal district, city or inter-district court whose decision is final.  
An appeal is to be filed with the authority (offi cer), who has adopted a resolution in a case involving 
an administrative violation, unless otherwise provided by Ukrainian law.  The appeal that was filed 
must be transferred within three days, together with the case records, to  the authority (officer) 
empowered to hear it pursuant to this  Article (Article 289 of the Code). 
The resolution in a case involving an administrative violation may be protested by the prosecutor 
(Article 290 of the Code).  
Question 13 
Paragraph 24 states that according to Constitu tion, Ukrainian parliament (Supreme Rada) has 
a right to approve the list of "state property not subject to privatization". Has such a list 
already been approved? Which property has the Pa rliament declared to be "not subject to 
privatization"? What are the reasons considered for such a decision?  
Answer
:  
In accordance with the Law of Ukraine "On St ate Property Privatization" No. 2163-XII of 
17 September 2003  the following objects shall not be subject to privatization: 
− objects of national importance, as well as the State property. Objects of national 
importance include property complexes of the enterprises, their structural sub-divisions, the main function of which is the manufacture of goods (works, services) of national importance. 
Of national importance are: 
− objects, which provide for fulfilment by the St ate of its functions, provide for protective 
ability of the State, its economic independence, and objects which belong to the Ukrainian 
people, property constituting the valu e basis of Ukrainian independence; 
− objects, functioning of which provides for social development, preservation and 
escalation of cultural, scientific potential, cultural wealth; 
− objects, which if controlled by the State, guarantee for the protection of citizens from 
being influenced by consequence of non-c ontrolled production, use or sale of hazardous 
products, services and dangerous production. 
Pursuant to the above Law the list of state-owne d objects not subject to privatization shall be 
approved by the Verkhovna Rada upon proposal of the Cabinet of Ministers of Ukraine.  
To implement this norm of the Law of Ukraine "On Privatization of Public Property" the Verkhovna 
Rada of Ukraine passed the Law of Ukraine "On List of State Property Assets not Subject to 
Privatization" No. 847-XIV of 7 July 1999, which determines a specific list of enterprises not subject 
to privatization.  This list runs to over 100 pag es containing the names of the firms organized by 
oblast.  The list can be made available to members of the Working party if requested. WT/ACC/UKR/114 
Page 10  
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 14 We welcome Ukraine's provision of a complete Questionnaire on Import Licensing Procedures 
(WT/ACC/UKR/99/Rev.1).  We note on page 11 of that paper that importers seeking special 
licenses (i.e., under ‘special licensing systems wi th quotas of imports on goods') "may not exceed 
35 per cent of the size of the quota period or such other period envisaged by the relevant decision of the Commission".   
We seek clarification of what is meant by " 35 per cent of the quota period".  Does Ukraine 
intend to limit volumes under the licence to individual importers to 35 per cent of the quota 
available in a particular period?   
If there is limited import demand (e.g., only 1 or 2 importers) in a particular period, this 
35 per cent requirement could artificially restrict tr ade and lead to non-utilization of the quota.  
A truly First-Come-First-Served method of quota allocation would not place such restrictions 
on the volumes of individual importers, but would seek to ensure full utilization of the quota by 
redistributing any quota unutilized by importers.   
We question the consistency of this requirement wi th Article 3:5(h) of the Agreement on Import 
Licensing Procedures.  
Answer:
  
The norm on establishing the 35 per cent volume of the quota period comes from the antimonopoly 
legislation of Ukraine. 
With the purpose of ensuring fair distribution between importers of import quota volumes and 
avoiding "monopoly" in their use the 35 per cent r estriction has been established for quota receiving 
within the determined total volume of import quota for any single application. 
However, an importer that has applied and been granted 35 per cent of the initial quota period may, 
once it has utilized its 35 per cent, apply again fo r a licence within the same quota period.  If quota 
remains, its application will be satisfied. In a like ma nner, further applications of the importer will be 
satisfied so long as quota remains available. 
Question 15 
Please either include or refer to a more concrete lis t of activities subject to activity licensing. 
Answer:   
The list of all types of economic activity subject to licensing in Ukraine is provided for by Law of 
Ukraine No. 1775-III of 1 June 2000 "On Licensing of  Certain Types of Economic Activity" (with 
changes and amendments). The list of more than 60 activities subject to licensing may be found in Articles 2 and 9 of the said Law, which was submitted the secretariat (See document WT/ACC/UKR/98/Add.9).  Types of economic activity, except for cases provided by Articles 2 and 9 of the said Law are not subject to licensing.   WT/ACC/UKR/114 
 Page 11 
 
 
 Question 16 
The different rules applying to activity licensing as opposed to licensing related to import/export 
operations should be made clearer. 
Answer:   
The system of licensing of types of economic activit ies is aimed at certifying the right of a business 
entity to perform the activities, indicated in its licence.  Law of Ukraine No. 1775-III of 1 June 2000 
"On Licensing of Certain Types of Economic Activity" establishes the list of activities subject to licensing, the procedure for filing and considering licence applications (see the above).The terms of 
licensing of each individual type of activity are s tipulated by relevant Laws, Resolutions of the 
Cabinet of Minister of Ukraine, normative acts of ministries and departments. 
The Law "On Foreign Economic Activity" No.959-X II of 16 April 1991, as amended, specifies as 
follows the circumstances in which qua ntitative restrictions may be imposed: 
Imports licensing is introduced in the event of: 
− drastic deterioration of the state of the paym ent balance and external payments (if other 
measures proved inefficient);  
− sharp decrease or minimal size of gold and currency reserves;  
− necessity to secure protection of the life of human beings, animals or plants, environment, 
public morale, national wealth of art, histori cal or archeological importance, or protection 
of intellectual property rights, as well as to comply with the requirements of national security;  
− imports of precious metals, except for banking metals;  
− necessity to apply measures of protection of the domestic producer;  
− necessity to ensure protection of patents, trademarks and copyright; and 
− necessity to ensure the fulfilment of international treaties of Ukraine.  
Exports licensing is introduced in the event of:  
− considerable imbalance with respect to certa in goods on the internal market, particularly 
agricultural goods, goods of fishery, foodstu ffs and common industrial goods of first 
priority, as well as other goods of vital importance to life in Ukraine;  
− necessity to secure protection of the life of human beings, animals or plants, environment, 
public morale, national wealth of art, histori cal or archeological importance, or protection 
of intellectual property rights, as well as to comply with the requirements of national security;  
− exports of precious metals, except for banking metals;  
− necessity apply measures of protection of the domestic producer;  
− necessity to ensure protection of patents, trademarks and copyright; and 
− necessity to ensure the fulfilment of international treaties of Ukraine. 
A. IMPORT REGULATION 
 - Customs Tariff 
Question 17 In paragraph 38, Ukraine notes that Articl e III of the Law of Ukraine No. 2097-XII of 
5 February 1992 provides for a non-regular duty  and special duty.  We would appreciate WT/ACC/UKR/114 
Page 12  
 
 clarification of the nature of these duties a nd their relationship to appropriate GATT 
disciplines. 
Answer:
 
Article 11 of the Law of Ukraine "On the Single Customs Tariff," No. 2097, dated 5 February 1992, 
provides for collection of special types of duty, namely: 
− antidumping (the Law of Ukraine "On Protection of the National Producer from Dumping 
Import," No. 330-XIX, dated 22 December 1998) pursuant to the requirements of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and 
Trade 1994; 
− countervailing (the Law of Ukraine "On Pr otection of the National Producer from 
Subsidized Import," No. 331-XIX, dated 22 December 1998) pursuant to the requirements of the Agreement on Subsidies and Countervailing Measures; and 
− special (the Law of Ukraine "On Applica tion of Special Measures as to Import into 
Ukraine," No. 332, dated 22 December 1998) pursuant to the requirements of the Agreement on Safeguards. 
Question 18 
The section should indicate the legislativ e basis for the customs tariff and the tariff 
nomenclature, and the version of the HS used an d any other nomenclature systems on which the 
tariff nomenclature is based. We request that this be included. 
Answer:
  
Customs Tariff of Ukraine is approved by the Law of Ukraine "On Customs Code of Ukraine" of 
5 April 2001 No. 2371-III.  Tariff nomenclature of  the Customs Tariff is based on the Ukrainian 
Foreign Economic Activity Classification of Goods, build on the Harmonized system of description 
and codification of goods 1996 (HS 1996) and Combined Nomenclature of the European 
Communities.  
- Other duties and charges levied on im ports but not on domestic production 
Question 19 We note the last sentence of this paragraph.  Article II:1(b) of GATT 1994 does not provide any 
flexibility in relation to commitments on ODCs. We would appreciate advice on what Ukraine is 
intending to propose in relation to ODCs. 
Answer:
 
The representative of Ukraine stated that all other duties and charges covered by ArticleII:1(b) of the 
GATT 1994 would be bound at the level of zero.  Th e Working Party took note of this commitment. 
Question 20 
Paragraph 29.  The list of activities subject to activity licensing includes "operations on the 
import and export of spirits, alcoholic bever ages and tobacco goods, and others". We ask that 
what is covered by "and others" be fully enumerated.  WT/ACC/UKR/114 
 Page 13 
 
 
 Answer:   
The phrase "operations on the export of spirits, al coholic beverages and tobacco goods, and others" 
means that licensing is requirement for such ty pes of activities as production, import, export,  
wholesale and retail trade in spirits, alcoholic bevera ges and tobacco goods.  Thus, the word "other" in 
the context of "import, export of spirits, alc oholic beverages and tobacco goods" means not other 
goods, but other types of activities licensed in Ukra ine according to Law of Ukraine No. 1775-III of 
1 June 2000 "Licensing of Certain Types of Economi c Activity".  This Law contains the list of all 
types of economic activity subj ect to licensing in Ukraine. 
The list of activities does not include any activity licensing requirements for the production of 
agricultural products as defined at Anne x 1 of the Agreement on Agriculture. 
Question 21 Could Ukraine include in the list any activity li censing requirements which may exist in relation 
to the production and internal and external sale/purchase of such agricultural products? 
Answer:
  
The requirements for obtaining a licence to engage  production, import, export, wholesale and retail 
trade in spirits, alcoholic beverages and tobacco goods as a type of activity  are described in the answer 
to question 34. 
Question 22 
At the end of paragraph 29, a reference to a list of goods requiring licenses should be made. 
Answer:   
In addition to question 29 we hereby inform th at import operations with the following goods are 
subject to licensing in 2004: 
Description HS Code 
Insecticides (except for veterinary medicines),   
fungicides, herbicides, other anti-sprouting 
products and plant-growth regulators, rodenticides 
(except veterinary medicines), as well similar remedies  3808 10, 3808 20, 3808 30, 3808 90 (except for 
individual consignments, imported free of charge upon 
permission of the Ministry of Ecologic Resources 
exclusively for state testing, academic research and demonstrative experiments)  
Unused postage, excise labels and similar 
products being in circulation or have to be in 
circulation in the country of destination; stamp-impressed paper   4907 00 10 00, 4907 00 91 00, 4907 00 99 00 
Optical polycarbonates for production of discs for 
laser reading systems   3907 40 00 00 
Copper sulphate 2833 25 00 00 
Products, which may contain ozone-depleting 
substances and are importe d in aerosol package  2710 00 98 00, 3004, 3208, 3209, 3212, 3214, 3304, 
3305, 3306, 3307, 3402, 3403, 3405, 3506 91 00 00, 
3808, 3809, 3811, 3812, 3814 00, 3820 00 00 00, 3824 90 70 00, 3824 90 95 00, 3910 00 00, 
Products, which may contain ozone-depleting 
substances 8415, 8418, 8424 10, 8476 21 00 00, 8476 81 00 00, 
9304 00 00 00  WT/ACC/UKR/114 
Page 14  
 
 Description HS Code 
Ozone-depleting substances 2903 14 00 00, 2903 19 10 00, 2903 30 33 00,  
2903 41 00 00, 2903 42 00 00, 2903 43 00 00, 2903 44 10 00, 2903 44 10 00, 2903 44 90 00, 
2903 45 10 00, 2903 45 15 00, 2903 45 25 00. 
2903 45 30 00, 2903 45 30 00, 2903 45 35 00, 
2903 45 40 00, 2903 45 45 00, 2903 45 50 00,  
2903 45 55 00, 2903 45 90 00, 2903 46 10 00, 2903 46 20 00, 2903 46 90 00, 2903 49 10 00,  
2903 49 30 00, 3824 71 00 00, 3824 79 00 00, 
3824 90 95 00, 2903 14 00 00 
 
Question 23 Generally, please clarify which fees, if any, apply to which type of licensing. 
Answer:
  
The following lists goods, the import or export of which require an activity licence. Except for 
polycarbonates, no import licence is  required and there is no restricti on on the volume of imports. In the 
case of polycarbonate, an import licen ce, which does not restrict the vol ume of imports, is also required. 
Product HS Licensing 
Body Eligibility Cost of licence 
Laser-readable 
discs; polycarbonate 
for production of optical information 
storage devices; 
equipment for laser-readable discs 3907 40 00 00, 8523, 8524 
 Ministry 
of 
Economy and 
European 
Integration  All agents of 
economic 
activity  UAH 340 
Holographic 
protection elements  The list of documents and 
goods, holographic elements 
of which are subject to protection, is approved by 
Resolution of the Cabinet of 
Ministers of Ukraine No. 932  of 5 July 2002  Security 
Service of 
Ukraine  All agents of 
economic 
activity  UAH 340 
Narcotics, 
psychotropic 
substances and 
precursors  3001-3006 State 
Department 
for 
Supervision 
over Quality, Safety and 
Production of 
Medicines and Articles 
for medical 
Use  Only a body 
authorized by 
the Cabinet of 
Ministers  UAH 340 
Cryptosystems and 
means for crypto-
graphic protection  Note1 Security 
Service of 
Ukraine  All agents of 
economic 
activity UAH 340 
                                                      
1. Development of hardware, hardware and software means for cryptographic pr otection of information 
and cryptosystems. 
Development of software means for cryptographic protection of information and cryptosystems.  WT/ACC/UKR/114 
 Page 15 
 
 
 Product HS Licensing 
Body Eligibility Cost of licence 
Ethyl alcohol, 
cognac, fruit spirits  2207, 2208 202900, 
2208 208900 Ministry of 
Economy and 
European 
Integration  Only 
designated 
state 
enterprises  UAH 170,000  
Alcoholic 
beverages 
 2204, 2205, 2206, 2208 Ministry of 
Economy and 
European Integration  All agents of 
economic 
activity  UAH 250,000 
Tobacco products  2402, 2403  Ministry of 
Economy and 
European Integration  All agents of 
economic 
activity  UAH 250,000 
 
The following goods are subject to licensing in s upport of Safeguard acti ons establishing quantitative 
restraints on imports from certain sources. License s are issued by the Ministry of Economy and 
European Integration.  The licence fee is UAH 255.  
Goods HS Originating in Date applied 
Baking soda  2836 30 00 00  Russian Federation  10 July 2002 
Needle and non-needle 
syringes made of plastic 
materials with volume of 2, 
5, 10, 20ml  901831 1000  Russian Federation, Slovakia, 
the Kingdom of Belgium, 
Ireland, Poland, the Federal 
Republic of Germany and the Kingdom of Spain  21 June 2001 
New cars  870322 19 00 Russian Federation 12 December 2002 
Portland cement 2523 29 0000 Russian Federation 10 October 2003 
                                                                                                                                                                     
Production of hardware, hardware and software mean s for cryptographic protection of information and 
cryptosystems. 
Production of software means for cryptographic protection of information and cryptosystems.  
Production and operation of means for cryptographic protection of information and cryptosystems.  
Certification tests and exert examination of crypto systems and means for cryp to-graphic protection of 
information. 
Thematic research of means fo r cryptographic protection of information and cryptosystems. 
Provision of services in the area of cr yptographic protection of information. 
Importation and exportation of means for cryptographic protection of information and cryptosystems.  
Trading in means for cryptographic protec tion of information and cryptosystems. 
  
 WT/ACC/UKR/114 
Page 16 The following table lists goods subject to mandatory licensi ng in 2004 without quantitative limitations.  All licenses are issu ed by the Ministry of Economy and 
European Integration, except for unused posta ge, excise labels and similar products being in circulation or have to be in circu lation in the country of destination; 
stamp-impressed paper which are issued by the Na tional Bank of Ukraine.  The licence fee is UAH 255. 
Product HS Prior approval from: 
Insecticides, rodenticides, fungicides, herbicides  3808 10,380 820,380830  The main State Inspection for Plant Protection of th e 
Ministry of Agrarian Policy of Ukraine  
Anti-sprouting products and plant-growth regulators  3808 90  The State Technological Centre for Protection of 
Fertility of Soil of the Ministry of Agrarian Policy of 
Ukraine  
Unused postage, excise labels and similar products being 
in circulation or have to be in circulation in the country of 
destination; stamp-impressed paper  4907 00 10 00, 4907 00 91 00, 4907 00 99 00  The licence is issued by the National Bank of Ukraine 
without any prior approval  
Optical polycarbonates for production of discs for laser reading systems   3907 40 00 00 Ministry of Education and Science of Ukraine  
Copper sulphate 2833 25 00 00 No prior approval  
Products, which may contain ozone-depleting substances 
and are imported in aerosol package  2710 00 98 00, 3004, 3208, 3209, 3212, 3214, 
3304, 3305, 3306, 3307, 3402, 3403, 3405, 3506 
91 00 00, 3808, 3809, 3811, 3812, 3814 00,  
3820 00 00 00, 3824 90 70 00, 3824 90 95 00,  3910 00 00 The State Ecological Inspec tion of the Ministry of 
Ecology and Natural Resources  
Products which may contain ozone-depleting substances  8415, 8418, 8424 10, 8476 21 00 00,  
8476 81 00 00, 9304 00 00 00  The State Ecological Inspec tion of the Ministry of 
Ecology and Natural Resources  
Ozone-depleting substances  2903 14 00 00, 2903 19 10 00, 2903 30 33 00, 
2903 41 00 00, 2903 42 00 00, 2903 43 00 00, 2903 44 10 00, 2903 44 10 00, 2903 44 90 00, 
2903 45 10 00, 2903 45 15 00, 2903 45 25 00. 
2903 45 30 00, 2903 45 30 00, 2903 45 35 00, 2903 45 40 00, 2903 45 45 00, 2903 45 50 00, 
2903 45 55 00, 2903 45 90 00, 2903 46 10 00, 
2903 46 20 00, 2903 46 90 00, 2903 49 10 00,  
2903 49 30 00, 3824 71 00 00, 3824 79 00 00, 
3824 90 95 00, 2903 14 00 00   
  WT/ACC/UKR/114 
 Page 17 
 
 
 Question 24 
In paragraph 34, please clarify what criteria are applied by the Cabinet of Ministers of Ukraine 
when granting authorisation to organisations ot her than state-owned enterprises to import or 
export alcoholic products. 
Answer:   
Import, export of ethyl alcohol, cognac and fruit spirits  and alcoholic beverages is a type of activity 
subject to licensing.  Import, export of ethyl alcoho l and fruit spirits is carried out only by public 
enterprises with an import (export) activity licence.  Import, export of cognac spirit is carried out only 
by specialized cognac enterprises with an import (exp ort) activity licence.  Import, export of alcoholic 
beverages and tobacco products may be carried out by any business entity in the presence of an 
individual licence for each type of activity (individual for import and individual for export, individual 
for alcohol and individual for tobacco products). 
Question 25 
Paragraph 36 seems to overlap with paragraph 33  to some extent, and some streamlining would 
be useful. In paragraph 36, please specify the length of validity of state registration for 
medicines. 
Answer:   
The revised version of paragraph 33 should read as follows: 
The representative of Ukraine said that the pr oduction of medicines, wholesale and retail trade 
in medicines shall be effectuated on the basis of  a licence for the given activity.  Applications 
for licenses to carry out these activities shall be submitted to the State Department for Control 
over Quality, Safety and Production of Medicines and Articles of Medical Purpose. In order 
to obtain a licence, a business agent shall submit an  application in the established form to the 
State Department for Control over Quality, Sa fety and Production of Medicines and Articles 
of Medical Purpose.  The application must contain the following information: 
− name of the legal entity with all its s ubsidiaries and branches, and its location; 
− surname, name, patronymic and passport deta ils (series, number, issuing authority, 
date of issuance and residence) – for a physical person; 
− identification code for a legal entity (ide ntification number for a physical person); 
− type of activity; 
− location of effectuation of the activity; and 
− obligations concerning the fulfilmen t of licensing terms and conditions. 
At the same time, a copy of the certificate of state registration of the agent of entrepreneurial 
activity or copy of the certificate of its inclusi on into the Unified State Register of Enterprises 
and Organizations of Ukraine certified by a notary or by the authority which issued the original must be attached to the application form.  
The term of a licence for carrying out the a bove business activity shall be three years. The 
following shall be the grounds for refusal of a licence: 
− false information submitted by an applicant; and 
− discrepancy between the submitted documents and Licensing Terms and Conditions 
established for the given business activity. WT/ACC/UKR/114 
Page 18  
 
 In case of refusal of a licence on the basis of discovered false information in the submitted 
documents, a new application shall be accepted not earlier that three months from the date of 
making decision on refusal in a licence issuance.  An agent of business activity, while carrying 
out activities on production of medicines, wholesale and retail trade in such medicines, must ensure observance of consumer rights and eff ectuate its activities in accordance with the Law 
of Ukraine "On Enterprises in Ukraine" and "O n Ensuring of Sanitary and Epidemiological 
Well-being of Population."  Business agen ts may carry out production of medicines, 
wholesale and retail trade in medicines on the basi s of a licence on the given activity, if they 
meet qualifying, organizational and other sp ecial requirements as established by licensing 
terms and conditions.  Medicines may be produced  after their registration.  Only medicines 
registered in Ukraine shall be allowed in w holesale and retail trade.  These medicines must 
also have a quality certificate issued by the producer.   
According to Article 9 of the Law of Ukraine "On Medicines," the Cabinet of Ministers of 
Ukraine shall determine the procedure for state registration of medicines.  The Resolution of 
the Cabinet of Ministers of Ukraine "On the Approval of the Procedure for State Registration 
(Re-registration) of Medicines and Fees for State Registration (Re-registration) of a 
Medicine," No. 1422, dated September 2000, as changed and amended by the Resolution of 
the Cabinet of Ministers of Ukraine, No. 678,  dated 21 June 2001, established the following 
fees for state registration (re-registration) of a medicine.  The applicant shall pay a fee for 
state registration (re-registration) of a medicine to the State budget of Ukraine.  A fee for state 
registration (re-registration) of a medicine shall be paid in Hryvnias or in a foreign currency. 
Conversion into Hryvnias shall be effectuated pursu ant to the official exchange rate of the 
National Bank of Ukraine as of the date of state registration (re-registration) of a medicine.   
A fee for state registration (re-registration) of a medicine shall be charged in Hryvnias in the 
following amounts: 
for state registration: 
− of a medicine (except for radioactive me dicines, diagnostic means and simple or 
complex (halenic) preparations of plant me dical raw materials) – in the amount equal 
to € 1,000 for each medical form, € 100 for each next dose and € 100 for each next package of a medicine; and 
− of a radioactive medicine, diagnostic me ans and simple or complex (halenic) 
preparations of plant medical raw material s – in the amount equal to € 500 for each 
medical form, € 50 for each next dose and € 50 for each next package of a medicine. 
for re-registration: 
− of a medicine (except for radioactive me dicines, diagnostic means and simple or 
complex (halenic) preparations of plant me dical raw materials) – in the amount equal 
to € 500 for each medical form, € 50 for each next dose and € 50 for each next package of a medicine; and 
− of a radioactive medicine, diagnostic me ans and simple or complex (halenic) 
preparations of plant medical raw materials – in the amount equal to € 250 for each medical form, € 25 for each next dose and € 25 for each next package of a medicine. 
for state registration (re-registration): 
− of a medicine supplied in bulk, as well as of medicine packed up in Ukraine from in 
bulk supply – in the amount equal to € 25 for each medical form and € 25 for each next package of a medicine; and  WT/ACC/UKR/114 
 Page 19 
 
 
 − of substances (active and auxiliary matter s) – in the amount equal to € 25 for each 
item. 
Medicines may be used during five years from the date of their registration in Ukraine.  After 
five years period will be over the using of me dicines shall be allowed only after their re-
registration. Trade in medicines shall be carried out only through chemist's shops and 
pharmaceutical centres (warehouses) which must pass state accreditation within a year from 
the date of a licence issuance. The production of  medicines shall be carried out following 
technical and technological regulations for produc tion of medicines, and analytical normative 
documentation (pharmacopoeia Ar ticle and technical terms a nd conditions) worked out in 
accordance with normative documents and standa rds applied in medical and microbiological 
industry.  Wholesale trade in medicines shall be effectuated only through pharmaceutical 
centres (warehouses).  It is mandatory for a pharm aceutical centre (warehouse) to have a valid 
State Pharmacopoeia, normative and technical  and normative and legal documents, and 
special reference literature on the issues of do se, control over quality, storage, and procedure 
for distribution (shipment) of medicines.  Retail trade in medicines shall be effectuated only through chemist's shops and their structural units (pharmaceutical points and pharmaceutical 
stands).  Chemist's shop fronts or their sep arate structural unit fronts should have the 
appropriate signboard, indicating the name of business agent and its owner or the owner's 
authorized body.  Individuals who are directly  engaged in production, wholesale and retail 
trade must have the relevant education and m eet the unified qualifying requirements.  Such 
individuals must posses the following documents: 
− diploma of state standard on pharmaceutical education; and 
− certificate on awarding (acknowledgement) of  pharmacist rank of general type (for 
specialists graduated from academies (universities) after 1992).  
Specialists who passed special training in educati onal institutions of foreign countries shall be 
allowed to carry out professional activities af ter examination of their qualification.  
Specialists who do not work within three years on a specialty indicated in their diplomas and 
certificates shall be allowed to carry out activities on production of medicines, wholesale and retail trade in medicine only after passing th rough retraining.  The term of a licence for 
carrying out the above business activity shall be three years. 
- Tariff rate quotas, tariff exemptions 
Question 26 There is no section on tariff quotas.  In such a section, there should be at least a brief reference 
to tariff quotas which have been applied and wh ich currently apply.  Where the tariff quotas 
are in relation to agricultural products (such as  for raw cane sugar), there should be a reference 
to the paragraphs/section where they are discussed in detail.  Any others which may exist should 
be elaborated in detail under the new section. 
Answer:
  
In the opinion of the Ukrainian party, there is no need to elaborate "tariff quotas" in detail in a 
separate section due to the fact that there is a tariff quota only for one product position "raw cane 
sugar" in Ukraine. WT/ACC/UKR/114 
Page 20  
 
 - Fees and charges for services rendered 
Question 27 Please confirm that the ad valorem  component for customs clearance fees for goods with a value 
of more than US$ 1,000 will no longer be applie d as of 1 January 2004 (following entry into 
force of Customs Code), as stated in section 41 of the Report.  
We welcome the information provided on the Un ified Fee [point 41 (3)].  We understand that 
fees are the same for domestic and foreign op erators but would welcome confirmation.  We 
further note that the amount of the fee depends on  the type of vehicle and not the type of cargo 
carried by the respective vehicle, even th ough the fee includes sanitary, veterinary, 
phytosanitary, radiological and environmental cont rols.  Please clarify how this corresponds to 
the cost of the service rendered, as it appears th at the types of control would differ depending 
on the type of goods to be controlled. 
With reference to point 43, for the Working Party Report, we wo uld expect a clear commitment 
by Ukraine to bring all fees in line wi th WTO rules by the time of accession. 
Answer:
  
The new Customs Code of Ukraine adopted by the Supreme Rada of Ukraine on 11 July 2002, 
No. 92-ІУ (Article 71) envisages only "fees for custom s clearance of goods beyond the location of 
customs authorities or out of working time" as of 1 January 2005.  
Pursuant to the Law of Ukraine "On the Introduction of the Unified Fee Collected at Entry Points on 
the Ukrainian State Border" No. 2659- ІП of 12 July 2001, the unified fee is charged at the state border 
crossing points of Ukraine and is applied to motor vehicles of national and fo reign owners.  This fee 
consists of the fees for performing the customs c ontrol in accordance with legislation of Ukraine for 
transit freight and means of transportation, as well as sanitary, veterinary, phytosanitary, radiological 
and ecological control, and payments for passing of  means of transportation, and other automobiles 
and mechanisms on the automobile roads of Ukraine.  The amount of fee does not depend on the type 
of control performed for a given product due to the fact that the rates of unified fee do not exceed the 
average cost for conducting all types of control at the state border. 
The above-mentioned procedure significantly simplifies the process of crossing of the customs border. 
The system of the unified fee is applied in a number of countries, i.e. Poland, Hungary and Romania. 
Question 28 
In paragraph 41, Ukraine notes that its Law "O n the Single Customs Tariff" allows for the 
establishment of quotas for preferential importatio n of goods and other items.  We seek full 
clarity in relation to this provision – in particular, its consistency with relevant GATT 
provisions including those contained in Articles I, III, VIII, XI, XIII, and Article 4 of the 
Agreement on Agriculture. 
We note that Table 5 makes reference to several cu stoms charges levied on an ad valorem basis, 
inconsistent with Article VIII of GATT 1994. We request that Ukraine acknowledge these 
inconsistencies and make a commitment to remove them.  WT/ACC/UKR/114 
 Page 21 
 
 
 Answer:  
Ukraine will do its best to meet the requirements of  Article VIII of GATT 1994.  Pursuant to the Law 
of Ukraine No. 1344 of 27 November 2003 and the Resolution of the Cabinet of Ministers of Ukraine No. 1995 of 24 December 2003 the customs fees in  question shall be abolished starting from 
1 January 2005. 
Question 29 We note in paragraph 41, on page 23, that the customs clearance fees applied to metal scrap 
exports are applied at the rate of five times the rate applicable to other similar products.  How 
does Ukraine justify this, as the fees clearly do not approximate the cost of providing the service 
as required by GATT Article VIII?  
Answer:
  
Pursuant to the Resolution of the Cabinet of Mi nisters of Ukraine No. 285 of 3 March 1998, during 
the customs clearance of exported scrap metal a nd wastes of ferrous a nd non-ferrous metals the 
customs fees for customs clearance, staying under cu stoms control and calling for the customs officer 
are paid by subjects of entrepreneurial activity in the amount five times exceeding the established 
customs fee rates of this kind, except for subject s of entrepreneurial activity who export these goods 
pursuant to the State Program of Utilization of the Common Types Ammunition not Suitable for Further Use and Storage. 
The above Resolution was adopted in order to regulat e the entrepreneurial activity related to exports 
of scrap metal and wastes of fe rrous and non-ferrous metals. 
Pursuant to the Law of Ukraine No. 1344 of 27 November 2003 and the Resolution of the cabinet of 
Ministers of Ukraine No. 1995 of 24 December 2003 the above fees shall be eliminated starting from 
1 January 2005. 
Question 30 
In relation to Resolution No. 1460 referred to in paragraph 41, we seek clarification of the 
"additional customs fee" applied to imported  oil products and its consistency with GATT 
Articles III, VIII and XI.  We seek commitment language to remove this requirement, as 
Ukraine has indicated it would do in its response to Item 37 of WT/ACC/UKR/110/Add.2. 
Answer:
 
The Resolution of the Cabinet of Ministers of Ukraine No. 1460 of 18 September 1998 establishes a 
new customs fee for the customs clearance of oil products, which are imported into the customs territory of Ukraine and are subject to excise in  the amount of European Currency Unit (ECU) 0.01 
per 1 kilogram, with accrual to the State Budget a nd with the purpose of transferring to the Pension 
Fund. This Resolution does not apply to oil products manufactured and sold in Ukraine. 
Additional customs fee for customs clearance of oil products charged in pursuance to the Law of 
Ukraine No. 1344 of 27 November 2003 and the Resolu tion of the Cabinet of Ministers of Ukraine 
No. 1995 of 24 December 2003 shall be abolished starting from 1 January 2005. WT/ACC/UKR/114 
Page 22  
 
 Question 31 
We note that the application of a ECU 0.01 p er kilo excise duty to imported goods does not 
appear to be applied to domestic production, in vi olation of Article III. We request that this be 
removed. 
Answer:
 
Additional customs fee for customs clearance of oil products charged in pursuance to the Law of 
Ukraine No. 1344 of 27 November 2003 and the Resolu tion of the Cabinet of Ministers of Ukraine 
No. 1995 of 24 December 2003 shall be abolished starting from 1 January 2005. 
Question 32 
Ukraine notes that vessels from countries with  which Ukraine has entered into international 
treaties and agreements are charged preferential ra tes on port fees.  We request that Ukraine 
remove its two-fee system (i.e., ordinary and pr ivileged) upon accession, to achieve consistency 
with Articles I, II and VIII of GATT 1994. 
Answer:   
With the aim to settle the issue of two-fee system Cabinet of Ministers of Ukraine adopted Resolution 
No. 1069 of 17 July 2003, "On amendments to  the Regulation on port fees".  The Resolution 
envisages establishment of the same amount of ship fee for foreign vessels not depending on the flag 
of vessel. 
- Application of internal taxes to imports 
 - Excise Taxes Question 33 
In paragraphs 44-45, Ukraine acknowledges WTO in consistencies in its excise laws, and advises 
that legislation changes are being made to address this.  Can Ukraine provide an update, 
including a commitment that GATT Article III will be fully observed from the date of 
accession? 
Answer:
  
The Law of Ukraine, dated 22 May 2003, under No . 849-IV, "On Amendments to the Law of Ukraine 
"On the State Budget of Ukraine for the Year 2003"  and certain other Legislative Acts" introduces 
three types of excise duty rates for tobacco products:  ad valorem  rates (in per cents to a base of 
taxation), specific rates (in fixed amounts per one un it of weight, volume, quantity or other natural 
value), mixed rates (concurrently in per cents to the base of taxation and in fixed amounts).  The Law 
has repealed temporary privileges for wine produc ts made in Ukraine, improved a system of 
exemptions from excise duty payments in the ev ent of sale for export of excisable products.  
In accordance with of the Law of Ukraine "On the State Budget of Ukraine for the Year 2004", dated 
27 November 2003, under No. 1344-IV, the effect of Pa rts 1 – 4 in Article 3 of the Law of Ukraine 
"On Excise Duty Rates for Ethyl Spirit and Alcohol Beverages", dated 7 May 1996, under 
No. 178/96-VR, is suspended (with respect to the priv ileged excise duty rate for ethyl spirit that is 
used by health care institutions and organizations to ensure the performance  of the treatment and 
diagnosis process and laboratory research, and by manufacturers, which are business entities, to  WT/ACC/UKR/114 
 Page 23 
 
 
 produce explosive substances, perfumes, nitrocellu lose, spirit vinegar, medicines (including blood 
components and preparations made there-from), except for medicines in the form of balsams; for ethyl 
spirit that is used by the National Production and Agrarian Association "Massandra" within limits of 
quotas set by the Cabinet of Ministers of Ukraine, to  produce vintage grape wines, as well as for ethyl 
spirit denatured (technical spirit), which is used to ma ke products pursuant to a list that is approved by 
the Cabinet of Ministers of Ukraine). 
The draft Law of Ukraine "On Amendments to certai n Legislative Acts of Ukraine in connection with 
the Adoption of the Law of Ukraine "On the State Budget of Ukraine for the Year 2004" (Registration 
No. 4000-1), adopted in the first r eading, provides for the setting of differentiated excise duty rates for 
ethyl spirit that is used: 
− by health care institutions and organizations to ensure the performance of the treatment 
and diagnosis process and laboratory research, as well as by business entities to produce medicines (including blood components and preparations made therefrom), except for 
medicines in the form of balsams within limits of quotas set by the Cabinet of Ministers of Ukraine, - an excise duty rate in the amount of UAH 2.0 for 1 litre of 100 per cent spirit; 
− by enterprises engaged in secondary wine-maki ng to produce grape, fruit and other wines, 
- an excise duty rate in the amount of UAH 16 for 1 litre of 100 per cent spirit; 
− by business entities to produce spirit vinega r, explosive substances, perfumes and 
nitrocellulose within the quotas set by the Cabi net of Ministers of Ukraine, - an excise 
duty rate in the amount of UAH 3.0 for 1 litre of 100 per cent spirit; 
− temporarily, until the 1 of January 2006, for et hyl spirit denatured (technical spirit), which 
is used to make products pursuant to the lis t approved by the Cabinet of Ministers of 
Ukraine within limits of the quotas set by the Ca binet of Ministers of Ukraine, - an excise 
duty rate in the amount of 3.0 for 1 litre of 100 per cent spirit. 
Also, the draft Law contemplates repealing Article 7 of the Law, which temporarily sets – until 
Ukraine has acceded to the World Trade Organi zation – raised excise duty rates for alcoholic 
beverages that are imported into Ukraine. 
The draft Law provides for establishing a mixed system for excise duty taxation of all excisable 
products. 
The draft Law provides that privileges applicable to payments of excise duties shall not apply to 
operations concerned with importa tion of excisable products into territories of Special Economic 
Zones, as well as under the special regime of inv estment activity within Priority Development 
Territories. 
In addition, there was adopted in the first read ing a draft Law of Ukraine "On the Excise Duty" 
(Registration No. 3017), which consolidates in itsel f provisions of all effective laws that govern 
matters of excise duty taxation, including with resp ect to a list of excisable products and excise duty 
rates, and which should become a separate chapter in the Tax Code. 
Question 34 
Please confirm that the discriminatory excise tax rates for certain domestically produced wine 
products and brandies will indeed be terminated  on 1 January 2004.  Which legislation foresees 
this?  In this context, does Ukraine also plan  to abolish the "excise stamps" which are required 
to be placed on each bottle before importatio n into Ukraine, whereas domestic producers only 
have to issue it before commercialisation,  thereby benefiting from a longer period for 
commercialisation? WT/ACC/UKR/114 
Page 24  
 
 We welcome the draft legislation on automobiles,  which, inter alia, eliminates the privileges for 
domestic enterprises. When will the new legislat ion be adopted and enter into force? We note 
that the issue of automobiles is also treate d in various parts of the document, and would 
welcome some streamlining. 
Will the new Tax Code enter into force in January 2004 as planned? 
With reference to point 49, we reserve our right to ask for additional detailed language at a 
later stage of the drafting process. 
Answer:
  
The Law of Ukraine, dated 22 May 2003, under No . 849-IV, "On Amendments to the Law of Ukraine 
"On the State Budget of Ukraine for the Year 2003"  and certain other Legislative Acts" introduces 
three types of excise duty rates for tobacco products: ad valorem  rates (in per cents to a base of 
taxation), specific rates (in fixed amounts per one un it of weight, volume, quantity or other natural 
value), mixed rates (concurrently in per cents to the base of taxation and in fixed amounts). The Law 
has repealed temporary privileges for wine produc ts made in Ukraine, improved a system of 
exemptions from excise duty payments in the ev ent of sale for export of excisable products.  
In accordance with of the Law of Ukraine "On the State Budget of Ukraine for the Year 2004", dated 
27 November 2003, under No. 1344-IV, the effect of Pa rts 1 – 4 in Article 3 of the Law of Ukraine 
"On Excise Duty Rates for Ethyl Spirit and Alcohol Beverages", dated 7 May 1996, under 
No. 178/96-VR, is suspended (with respect to the priv ileged excise duty rate for ethyl spirit that is 
used by health care institutions and organizations to ensure the performance  of the treatment and 
diagnosis process and laboratory research, and by manufacturers, which are business entities, to 
produce explosive substances, perfumes, nitrocellu lose, spirit vinegar, medicines (including blood 
components and preparations made therefrom), except for medicines in the form of balsams; for ethyl 
spirit that is used by the National Production and Agrarian Association "Massandra" within limits of 
quotas set by the Cabinet of Ministers of Ukraine, to  produce vintage grape wines, as well as for ethyl 
spirit denatured (technical spirit), which is used to ma ke products pursuant to a list that is approved by 
the Cabinet of Ministers of Ukraine). 
The draft Law of Ukraine "On Amendments to certai n Legislative Acts of Ukraine in connection with 
the Adoption of the Law of Ukraine "On the State Budget of Ukraine for the Year 2004" (Registration 
No. 4000-1), adopted in the first r eading, provides for the setting of differentiated excise duty rates for 
ethyl spirit that is used: 
− by health care institutions and organizations to ensure the performance of the treatment 
and diagnosis process and laboratory research, as well as by business entities to produce 
medicines (including blood components and pr eparations made there-from), except for 
medicines in the form of balsams within limits of quotas set by the Cabinet of Ministers of Ukraine, an excise duty rate in the amount of UAH 2.0 for 1 litre of 100 per cent spirit; 
− by enterprises engaged in secondary wine-maki ng to produce grape, fruit and other wines, 
an excise duty rate in the amount of UAH 16 for 1 litre of 100 per cent spirit; 
− by business entities to produce spirit vinega r, explosive substances, perfumes and 
nitrocellulose within the quotas set by the Cabi net of Ministers of Ukraine, - an excise 
duty rate in the amount of UAH 3.0 for 1 litre of 100 per cent spirit; and 
− temporarily, until the 1 January 2006, for ethyl spirit denatured (technical spirit), which is 
used to make products pursuant to the list approved by the Cabinet of Ministers of 
Ukraine within limits of the quotas set by the Ca binet of Ministers of Ukraine, an excise 
duty rate in the amount of 3.0 for 1 litre of 100 per cent spirit.  WT/ACC/UKR/114 
 Page 25 
 
 
 Also, the draft Law contemplates repealing Article 7 of the Law, which temporarily sets – until 
Ukraine has acceded to the World Trade Organi zation – raised excise duty rates for alcoholic 
beverages that are imported into Ukraine. The draft Law provides for establishing a mixed system for excise duty taxation of all excisable products. 
The draft Law provides that privileges applicable to payments of excise duties shall not apply to 
operations concerned with importa tion of excisable products into territories of Special Economic 
Zones, as well as under the special regime of inv estment activity within Priority Development 
Territories. 
In addition, there was adopted in the first read ing a draft Law of Ukraine "On the Excise Duty" 
(Registration No. 3017), which consolidates in itsel f provisions of all effective laws that govern 
matters of excise duty taxation, including with resp ect to a list of excisable products and excise duty 
rates, and which should become a separate chapter in the Tax Code. 
 - VAT 
Question 35 We seek clarification of the statement that "in the event of selling agricultural products 
(services) of own production by the subject of entrepreneurial activity to registered VAT 
payers, the charge shall be established in the size of 6 per cent for agriculture, and 4 per cent for products of forestry or fishing from the selling pric e, instead of the VAT zero rate".  What is the 
level of VAT applied to imported goods of an identical nature?  
Answer:
 
This statement related the provision in the draft Law "On the State Budget of Ukraine for the Year 
2004".  This provision was not included in the Law of Ukraine "On the State Budget of Ukraine for 
the Year 2004", dated 27 November 2003, under No. 134 4-IV, as adopted by the Supreme Rada of 
Ukraine. Special mechanisms of VAT payment by Ukrainian agricultural enterprises remain without 
changes go per the Law of Ukraine "On the Prolongation of Effect of certain Provisions in the Law of Ukraine "On the Value Added Tax", dated 28 No vember 2003, under No. 1352-IV, which entered 
into force as from the 1 January 2004.  Pursuant to this Law, the term, within which the special 
mechanisms of VAT payment by Ukrainian agricultural  enterprises will be in effect, shall be extended 
up to the 1 January 2005.  
Question 36 
In paragraph 48, Ukraine describes several form s of VAT exemption to agricultural producers 
that are inconsistent with Article III of GA TT 1994, irrespective of whether they constitute a 
form of domestic support to local producers.  We request that this be noted in the next draft, as 
well as the need for Ukraine to repeal these policies. 
Answer
:  
Special mechanisms of VAT payment by agricult ural enterprises are applied in Ukraine, which 
mechanisms are not per se exemptions from payment of VAT.  VAT is assessed on all agricultural 
products that are sold agricultural enterprises, and is  also paid by agricultu ral enterprises when they 
purchase inputs.  That is, agricultural products go  onto the domestic market with VAT.  The 
difference between the amount of the value added tax received by agricultural enterprises from buyers 
and the amount of the value added tax paid by them  to suppliers is transferred by the agricultural 
enterprises from the current account into a separate a ccount within time periods specified for transfers WT/ACC/UKR/114 
Page 26  
 
 of VAT amounts into the budget for payment of grants.  This type of support through the mechanism 
of accumulation of funds to pay out subsidies for purchases of inputs for agricultural production, wherein the VAT is a source of financing due to th e lack of direct disbursements out of the State 
budget that are sufficient therefore, is governed by  Article 6 of the WTO Agreement on Agriculture 
and Annex 3:2 to this Agreement.  Pursuant to these provisions of the WTO Agreement on 
Agriculture, subsidies shall include both budgetary outlays and revenue foregone by governments or 
their agents for the benefit of agricultural producers. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 37 Understanding the necessity of licensing for prod ucts and services, we ask Ukraine to undertake 
the application of an automatic licensing procedure (in the meaning of Article 2 of WTO 
Agreement on Import Licensing Procedures) and to define occasions, which are specified in 
Paragraph 29, as exemptions from automatic li censing. We ask to reduce gradually the number 
of such exemptions. 
We kindly ask representatives of Ukrainian dele gation to specify what are the conditions for 
import licensing for agricultural products? 
Answer:
  
Paragraph 29 deals with activity licensing, and not with import licensing. Ukraine applies non-
automatic import licensing only in support of safegua rd actions, as allowed by WTO rules.  Such 
actions are described in Table 14. All other import licenses are automatic in the sense of Article 2 of 
the WTO Agreement on Import Licensing Procedures. ' Ukraine does not apply import licensing to 
agricultural produce. 
Question 38 
We note reference under paragraph 50 the righ ts under Ukraine's Law "On Foreign Economic 
Activity" to introduce licensing and "quotas" ap plicable to exports and imports.  We request 
the inclusion of full information on the conditi ons under which "quotas" can be introduced, and 
how these provisions meet relevant GATT provisions.    We understand Ukraine is applying 
quotas as a GATT Article XIX measure as part of its Safeguard regime, but we require clarification that quotas (prohibited under Ar ticle XI of GATT 1994) cannot be introduced 
more generally under Ukraine's legislation. 
Answer:
  
A decision to apply a quota regime is made by the Cabinet of Ministers of Ukraine. In the event of 
application of antidumping, countervailing or sp ecial measures – a decision on introduction of the 
quota regime is made by the Interdepartmental Commission for International Trade. 
The Law of Ukraine "On Foreign Economic Activ ity" No.959-XII of 16 April 1991, as amended, 
specifies that:  
- the quota regime with respect to export of goods  is introduced in Ukraine in the event of:  
− considerable imbalance with respect to certa in goods on the internal market, particularly 
agricultural goods, goods of fishery, foods tuffs and common industrial goods of first  WT/ACC/UKR/114 
 Page 27 
 
 
 priority, as well as other goods of vital importanc e of the life activity in Ukraine, which is 
in accord of the provisions of Article ХІ of GATT;  
− necessity to secure protection of the life of human beings, animals or plants, environment, 
public morale, national wealth of art, histori cal or archeological importance, or protection 
of intellectual property rights, as well as to comply with the requirements of national 
security, which is in accord with items (b), (f) of Article ХХ of GATT, TRIPS Agreement 
and Article  ХХІ of GATT; 
− exports of precious metals, except for banki ng metals, which is in accord with the 
provision of item ( с) of Article ХХ of GATT; 
− necessity of application of measures of protection of the domestic producer, which is in 
accord with the provisions of Article ХІХ of GATT; 
− necessity to ensure protection of patents, tr ademarks and copyrights, which is in accord 
with the provision of item (d) of Article ХХ of GATT; and 
− necessity to ensure fulfilment of in ternational treaties of Ukraine.  
- the quota regime with respect to imports of goods is introduced in Ukraine the event of: 
− drastic deterioration of the state of the paym ent balance and external payments (if other 
measures proved inefficient), which is in  accord with the provisions of Article ХІІ of 
GATT; 
− sharp decrease or minimal size of gold and currency reserves, which is in accord with 
Article ХII of GATT; 
− necessity to secure protection of the life of human beings, animals or plants, environment, 
public morale, national wealth of art, histori cal or archeological importance, or protection 
of intellectual property rights, as well as to comply with the requirements of national 
security, which is in accord with the provisions of items (b), (f) of Article ХХ of GATT, 
TRIPS Agreement and Article ХХІ of GATT. 
− imports of precious metals, except for banki ng metals, which is in accord with the 
provision of item ( с) of Article ХХ of GATT; 
− necessity of application of measures of protection of the domestic producer, which is in 
accord with the provisions of Article ХІХ of GATT; 
− necessity to ensure protection of patents, tr ademarks and copyrights, which is in accord 
with the provision of item (d) of Article ХХ of GATT; and 
− necessity to ensure fulfilment of in ternational treaties of Ukraine. 
Question 39 
Ukraine notes in paragraph 103 that under the Law No. 468/97 of July 1997 "On State 
Regulation of Agricultural Imports", subsequent ly amended by Law No. 32/98 of January 1998, 
livestock imports were restricted  through annual quotas from 1997-2003.  In recent responses to 
questions raised by Members (Page 96 of WT/ACC/UKR/110/Add.2), Ukraine notes that 
"Article 3 of the Law of Ukraine "On State Re gulation of Agricultural Product Import", 
whereby quotas on the importation of products we re introduced till 1 January 2003, has lost its 
effect."  We seek a commitment from Ukraine th at it will not maintain, introduce or revert to 
any such quotas or any other quantitative restrictions that have no valid WTO justification after accession and that it will conform with the provisions of Article XI:1 of GATT 1994 and 
Article 4 of the Agriculture Agreement.  
We note some inconsistencies be tween information provided in this section on goods subject to 
quantitative limitations vis-à-vis  material on page 31 of the document and Ukraine's 
Questionnaire on Import Licensing Procedures  (WT/ACC/UKR/99/Rev.1).  In particular: WT/ACC/UKR/114 
Page 28  
 
 − Restrictions on newsprint (Table 9), iron ores (Table 9), electrical light bulbs and 
synthetic fur, are not reflected in Ukraine' s Questionnaire on Import Licensing (i.e., 
page 8 covering "special licensing system").   
− Limitations contained under Table 10 on chemical means for plant protection, and 
agricultural chemicals are also not reflected in the relevant section of the Questionnaire (page 2). 
We seek clarification for the differences in th e information provided in the two documents. 
Answer:
  
No quantitative restrictions or licensing requirement s exist for newsprint, or iron ores.  Safeguard 
quotas on electric light bulbs and synthetic fur were terminated on 22 May 2003.  
− Imports of chemicals of crop protection and agrochemicals do not fall under the system of 
licensing with quantitative restrictions (safeguard licensing), but under the system of import licensing of goods, the list of which is annually established by the Cabinet of 
Ministers of Ukraine (page 1, 2 of the Questionnaire), import of which is subject to 
licensing with no quantitative restrictions, i. e. application is approved in all cases on 
condition of observation by the applicant of the legal requirements of Ukraine, which is in 
compliance with Article 2 of the Agreement on Import Licensing Procedures. 
The peculiarity of licensing of import of chemical crop protection products and agrochemicals lies the 
need to obtain a prior approval from the relevant  administrative authority, which is necessary for 
securing the licence for import of the said products.  
Question 40 
Paragraph 51 states that only activity licenses are required to export and import alcohol and 
alcoholic beverages, whereas paragraph 34 does not specify which type of licence is required. 
Please ensure coherence in the information provided.  
Answer:
  
Import, export of ethyl alcohol, cognac and fruit sp irits and alcoholic beverages is subject only to 
activity licensing. Licenses to engage in import and e xport as a type of activity are issued individually 
for each type of activity, i.e. – individua lly for export, and individually for import. 
Question 41 
We note that non-automatic import licensing is still applied for a number of products (for 
example, crop protection products, personal hygien e products in aerosol form), where the same 
products are also subject to registration and certification.  We find these procedures unnecessarily cumbersome and would, with reference to point 56, seek further clarification as to 
their justification.  
Answer:
  
Import of chemical crop protection products and ag rochemicals, ozone-depleting substances, products 
that may contain ozone-depleting substances and are imported in aerosol package is subject to the 
system of automatic licensing of products, import of which is subject to licensing with no quantitative 
restrictions, i.e. approval of the licence application is given in all cases to any applicant on condition 
of compliance with the legal requirements being in place in Ukraine.  The peculiarity of licensing of  WT/ACC/UKR/114 
 Page 29 
 
 
 import of chemical crop protection products and agrochemicals lies in the need to obtain the prior 
approval of a relevant administ rative authority, which is necessar y for securing the licence for import 
of the said products.  
Question 42 
In paragraph 54, please specify if there are any exceptions where natural persons may not 
obtain import licenses (see our comment on paragraph 34). 
Answer:   
Any natural person (with no exceptions) that has un dertaken arrangements required for carrying out 
business activities in Ukraine may obtain the import licence.  
Question 43 
This section of the report should indicate whic h products, if any, are subject to automatic 
licensing.  This section also lacks any reference to  non-automatic import licensing applicable to 
agricultural products other than tobacco, to bacco products, ethyl alcohol and alcoholic 
beverages.  Other sections of the report seem to imply that non-automatic import licensing 
might be used to maintain restrictions on  the importation of live stock products 
(paragraphs 103, 107) and sugar (paragraph 104).  Full details of any such licensing 
requirements should be included. 
Answer:   
According to Resolution of the Cabinet of Mini sters of Ukraine No. 1996 of 24 December 2003 "On 
the List of Goods, Export and Import of Which is  Subject to Licensing, and Which Fall under the 
Quota Regime in 2004", the following goods are s ubject to automatic import licensing in 2004:  
Description HS Code 
Insecticides (except for veterinary medicines),   
fungicides, herbicides, other anti-sprouting products and plant-growth regulators, rodenticides 
(except veterinary medicines), as well similar 
remedies  3808 10, 3808 20, 3808 30, 3808 90 (except for 
individual consignments, imported free of charge upon permission of the Ministry of Ecologic Resources 
exclusively for state testing, academic research and 
demonstrative experiments)  
Unused postage, excise labels and similar products being in circulation or have to be in 
circulation in the country of destination; stamp-
impressed paper  4907 00 10 00, 4907 00 91 00, 4907 00 99 00 
Optical polycarbonates for production of discs for 
laser reading systems   3907 40 00 00 
Copper sulphate 2833 25 00 00 
Products, which may contain ozone-depleting 
substances and are importe d in aerosol package  2710 00 98 00, 3004, 3208, 3209, 3212, 3214, 3304, 
3305, 3306, 3307, 3402, 3403, 3405, 3506 91 00 00, 
3808, 3809, 3811, 3812, 3814 00, 3820 00 00 00, 3824 
90 70 00, 3824 90 95 00, 3910 00 00, 
Products, which may contain ozone-depleting 
substances 8415, 8418, 8424 10, 8476 21 00 00, 8476 81 00 00, 
9304 00 00 00  
Ozone-depleting substances 2903 14 00 00, 2903 19 10 00, 2903 30 33 00,  
2903 41 00 00, 2903 42 00 00, 2903 43 00 00, 
2903 44 10 00, 2903 44 10 00, 2903 44 90 00, 
2903 45 10 00, 2903 45 15 00, 2903 45 25 00. 2903 45 30 00, 2903 45 30 00, 2903 45 35 00, 
2903 45 40 00, 2903 45 45 00, 2903 45 50 00,  WT/ACC/UKR/114 
Page 30  
 
 Description HS Code 
2903 45 55 00, 2903 45 90 00, 2903 46 10 00, 
2903 46 20 00, 2903 46 90 00, 2903 49 10 00,  2903 49 30 00, 3824 71 00 00, 3824 79 00 00, 
3824 90 95 00, 2903 14 00 00 
[Note: the Resolution does not establish any import quotas.] 
In order to obtain a licence to import the above listed products, the importer should first receive a 
permit of the relevant administrative agency. Expert  conclusions are issued depending on the type of 
product by the following institutions: 
The Main State Inspection on  Plant Protection of the 
Ministry of Agricultural Policy of Ukraine Imports of herbicides  
(code 3808 10, 3808 20, 3808 30) 
The State Technological Ce nter for protection of 
Land Fertility of the Ministry of Agricultural Policy of Ukraine Imports of agrochemicals (p lant growth regulators – 
code 3808 90)  
Ministry of Science and Education Imports of optical polycarbonate for production of 
discs and laser reading systems (code 3907 40 00 00) 
Ministry of Environmental Protection   
  Import of ozone-depleting substances and products, 
which may contain ozone-depleting substances, and 
are packed in aerosol p ackaging (code 2106, 3208, 
3209, 3210 00, 3212, 3214, 3304, 3305, 3306, 3307, 3402, 3403, 3405, 3506 91 00 00, 3808, 3809, 3811, 
3812, 3813 00 00 00, 3814 00, 3820 00 00 00,  
3824 90 70 00 - 3824 90 95 00, 3910 00 00; 8415, 8418, 8424 10, 8476 21 00 00, 8476 81 00 00,  
9304 00 00 00) 
 
Processing of applications is carried out by the Mi nistry of Economy and European Integration of 
Ukraine or, within their competen cies, by the Ministry of Economy of the Autonomous Republic of 
Crimea, relevant division of oblast, Kiev and Sevastopol city state administrations that issue licenses for import/export of goods by business entities register ed in relevant regions , and the accounting value 
of which under agreements (contracts) does not exceed US$ 300,000. 
The state duty in the size of UAH 255 (approximately US$ 45) is established for issuing of the import 
licence. 
Ukraine does not apply licensing of imports of ag ricultural products except for spirit, alcoholic 
beverage, and tobacco goods. 
Question 44 
Table 9 in paragraph 50 lists a number of produc ts on which quantitative restrictions are in 
place.  Please provide further details, including  anticipated lengths of the measures, and plans 
for their elimination.  WT/ACC/UKR/114 
 Page 31 
 
 
 Answer:  
Commodity subject to 
investigation HS Legal basis for the 
application of 
measures Expected length Measures taken 
Baking soda originating 
from the Russian 
Federation 2836 30 00 00 Protective measures 
taken in accordance 
with the decision of 
the Interdepartmental 
Commission for 
International Trade from 10 July 2002 to 
10 July 2006 No liberalization was 
performed  
Needle and non-needle 
syringes made of plastic 
materials with volume of 
2, 5, 10, 20ml originating 
from the Russian 
Federation, Slovakia, 
Belgium, Ireland, Poland, 
Germany and Spain. 9018 31 10 00 Protective measures 
taken in accordance 
with the decision of 
the Interdepartmental 
Commission for 
International Trade from 21 June 2001 to 
21 June 2005 3 July 2002 protection 
measures were 
liberalised by 5%, 
28 August 2003 – by 
another 5% vs. the 
initial quota level  
Portland cement originating from the 
Russian Federation 2523 29 00 00 Protective measures 
taken in accordance 
with the decision of 
the Interdepartmental 
Commission for 
International Trade from 10 October 2002 
to 10 October 2006 1 October 2003 
protection measures 
were liberalized by 5% 
New cars originating from the Russian Federation 8703 22 19 00 Protective measures 
taken in accordance 
with the decision of 
the Interdepartmental 
Commission for 
International Trade from 
12 December 2002 to 
8 December 2006 17 October 2003 
safeguard quota was 
increased by 10% 
 
- Customs valuation 
Question 45 Interpretative Notes: the Interpretative Not es to the WTO Agreement form part of the 
Agreement and should be included in national legislation. Ukraine say they will only include 
these Notes as part of a Commentary to their Customs Code (see paragraph 58). This is not a 
satisfactory approach. 
Answer:
 
Currently, the issue of including the Interpretativ e Notes to the WTO Agreement on Application of 
GATT Article VII into the national legislation of Ukra ine is being worked on.  With this purpose, the 
State Customs Service prepares the Draft Law of  Ukraine on amendment of the Section of the 
Customs Code of Ukraine regulating the issue of customs value. 
Question 46 
Article 11 of the WTO Agreement provides for an init ial right of appeal to an authority within 
the customs administration.  However, this seems to be not available in Ukraine.  (Paragraph 59 
refers only to a right of appeal in Ukraine in th e context of an action in commercial courts). WT/ACC/UKR/114 
Page 32  
 
 Answer:
 
The right to appeal the decision of the customs au thority is stipulated by the Customs Code of 
Ukraine. 
In accordance with part 5 of Article 264 of the Cust oms Code of Ukraine, the final decision made by a 
higher customs authority or a court to the effect of applying the customs valuation as performed by 
the Declarant, the customs authority in question mu st reimburse to the Declarant the amount equal to 
the excess of taxes and charges payment. 
In accordance with part 4 of Article 265 of the Cu stoms Code of Ukraine, a customs authority's 
decision to the effect of the goods customs value determination may be appealed against following the 
procedure set by applicable laws. 
The procedure for consideration of disputes on the above decisions is established by the Commercial-
Procedural Code of Ukraine. 
Question 47 
Publication of rules, decisions etc:  it seems th at judicial decisions are not published at present 
(paragraph 58).  This practice is not in line with Article 12 of the WTO Agreement. 
Answer:  
Decisions of the court bodies on the tried cases, in particular – in customs valuation area, shall be 
placed on the Internet site of the State Customs Service of Ukraine. 
Question 48 
Application of the methods of customs value: the provisions of the WTO Agreement relating to 
certain valuation methods seem to be not fully co rrect.  However, this may be due to linguistic 
factors and may be resolved when the actual text of the customs Code is received. 
Answer:  
The full text of the Customs Code of Ukraine wa s submitted to the WTO Secretariat (see document 
WT/ACC/UKR/98/Add.10).  But for the evident inaccuracies in the tr anslation, the current Customs 
Code of Ukraine shall be translated again. 
- Other customs formalities Question 49 We note the reference in paragraph 65 to a licen ce to import.  The nature and purpose of this 
licence is unclear.  In particular, it is unclear whether this is a reference to: 
− a general licence to import – applied to all importers and irrespective of the goods 
imported; 
− a specific import licence applied in relation to the importation of a particular 
product (i.e. covered under the section on "registration requirements" for 
importation.  WT/ACC/UKR/114 
 Page 33 
 
 
 We seek full details of the purpose and applicatio n of this licence, and the relationship of these 
licences to other forms of import licences. 
Answer:   
The passage should read "licence to import, if th e good in question is subject to licensing". 
- Anti-dumping, countervailing duties, safeguard regimes 
Question 50 
We would seek a commitment in the Working Pa rty Report that all existing trade defence 
measures will be reviewed with regard to their WTO compliance upon accession. 
With reference to paragraph 69, we also reserv e our right to ask for additional detailed 
language at a later stage of the drafting process. 
Answer:   
Ukraine expects to deal fully with  the questions of its commitments in the context of preparation of 
the draft Report of the Working Party. 
Question 51 
Ukraine has expressed its desire to bring its safeguards regime into conformity with WTO 
requirements on accession. What is the timetabl e for the implementation of such domestic 
legislation? 
Answer:   
In order to bring the Law of Ukraine "On Appli cation of Safeguard Measures as to Imports into 
Ukraine," into conformity with the General Ag reement on Tariffs and Trade and Agreement on 
Safeguards, the draft Law aimed at improvement of regulation of legal relati onships in the field of 
carrying out special investigations has been drafted. 
The draft provides for bringing applicable Law of Ukraine "On Application of Safeguard Measures to 
Imports into Ukraine" into conformity with the international standards, in particular: 
− bringing the preamble and the first part of Ar ticle 2 of the said Law into conformity with 
the requirements of the second part of Artic le 2 of the Agreement on Safeguards, i.e., 
determination of the field of application of  the Law only to import into Ukraine of any 
goods, irrespective of their country of origin and export; 
− bringing the second part of Article 13 of the said Law into conformity with the provisions 
of the second part of Article 4 of the Agre ement on Safeguards, i. e., determination of 
inclusion to the factors reviewed during the evaluation of the national producer's status 
such factors as labour productivity, use of the fixed assets and amount of losses; 
− bringing the sixth part of Article 16 of the said Law into conformity with the provisions 
of the first part of Article 5 of the Agreem ent on Safeguards, i.e., determination of the 
amount of safeguard quota as a number that can not be lower than average value of 
imports of goods, which is not subject to safegua rd investigation, during last three years.  
Current wording of the Law indicates that the amount of safeguard quota can not be higher; and WT/ACC/UKR/114 
Page 34  
 
 − bringing the first and fourth parts of Article 18 and the first part of Article 19 of the said 
Law into conformity with the provisions of Article 7 of the Agreement on Safeguards in the part of terms and procedures for review  and liberalization of safeguard measures. 
The draft Law also suggested to make certain amendments in order to eliminate internal 
discrepancies.  Currently, the said draft Law is under consideration of the Verkhovna Rada of 
Ukraine. 
Question 52 
We note that Ukraine intends to address the i ssue of commitments in the framework of the 
drafting of the actual Working Party Report.  We  thus reserve our right to come back to these 
points at a later stage and to contribute to the drafting of commitments as appropriate. 
Answer:
  
Ukraine expects to deal fully with  the questions of its commitments in the context of preparation of 
the draft Report of the Working Party. 
Question 53 
We derive from paragraph 68 of the elements of  a draft Report that Ukraine has not established 
the practice to inform the authorities of th e exporting countries of the initiation of an 
antidumping investigation and will do this only a fter the accession to the WTO.  We note also 
that Tables 13 and 14 of the Report list virtually  only those investigations, which have been 
concluded with positive determinations and where measures have been applied.  Therefore, we 
would like to ask the representative of Ukraine, whether there have been other initiations of proceedings (special investigations and antidumping ) than those listed in tables, i.e., proceedings 
currently underway, proceedings which have ended with negative determinations or decision 
not to apply measures.  If there have been or  are such kind of investigations, please kindly 
provide the Members with a list of them, containi ng names of the exporting countries, products 
concerned, initiation dates and explanation of  reasons for negative determinations or non-
application of measures. 
We kindly ask representatives of Ukrainian dele gation to explain in more detail, what is 
understood under "special investigations" in paragraph 68 of the elements of a Report?  How 
do they differ from "antidumping investigations"? 
Answer:
  
According to Article 12 paragraph 13 of the Law of Ukraine "On Protection of National Producer 
from Dumped Import" the Ministry of Economy informs exporters, impor ters, well-known unions 
(associations) of importers or exporters, competen t relevant authorities of the country of export as 
well as declarants of the initiation of the anti-dumping investigation". 
Safeguard investigation – investigation of the fact s of increase of imports to Ukraine, which cause 
serious injury or threat to cause serious injury to  the domestic industry, that produces like or directly 
competitive products. 
Antidumping investigation – investigation conducted w ith the purpose of determination of the fact of 
products imported at dumped prices, which causes or threatens to cause serious injury or materially  WT/ACC/UKR/114 
 Page 35 
 
 
 retards the establishment or growth of a domes tic production of a like or directly competitive 
products. 
Table 13  
Commodity that is subject to the 
Antidumping 
Investigation Country of Origin of the 
Commodity Results of Investigation and Measures Taken 
Completed Anti-dumping Investigations 
- Artificial fur and articles 
thereof (HS code – 4304 00 
00) 
- Pile fabrics and terry fabrics 
(HS code - 6001) Republic of Belarus On 23 February  2001, by Decision No. AD-15/2001/52-
54 of the Interdepartmental Commission on International 
Trade, final anti-dumping measures, in the form of an 
anti-dumping duty for artificial fur – 179.70%; pile 
fabrics – 53.29% (of the customs value of the 
commodity, were introduced for a period of five years. 
Electric filament lamps  
(HS code – 8539 22 90 00) Russian Federation On 7 December 2000, by Decision No. AD-11/2000/52-
39А of the Interdepartmental Commission on 
International Trade, final anti-dumping measures in the 
form of a anti-dumping duty in the amount 97.50% of 
the customs value of the commodity, were introduced for 
a period of five years. 
Fibreboard of wood  (HS code- 4411 11 00 00) 
 Republic of Belarus On 12 July 2002, Decision No. AD-45/2002/52-61 of the 
Interdepartmental Commission on International Trade, 
final anti-dumping measures, in the form of an anti-
dumping duty in the amount of 68.75% of the customs 
value of the commodity, were introduced for a period of 
five years.  
Crossing pieces  
(HS code - 8608 00 10 00) Russian Federation On 5 July 2002, by Decision No. AD-43/2002/52-63 of 
the Interdepartmental Commission on International 
Trade, final anti-dumping measures, in the form of an 
anti-dumping duty in the amount of 59.4% of the 
customs value of the commodity, were introduced for a period of five years.  
Ruberoid  
(HS code- 6807 10 1000 Republic of Belarus On 12 July 2002, by Decision No. AD-47/2002/52-62 of 
the Interdepartmental Commission on International 
Trade, final anti-dumping measures, in the form of an 
anti-dumping duty in the amount of 75% of the customs 
value of the commodity, were introduced for a period of 
five years.  
Electric lamps 
(HS code – 8539 22 90 10) Kyrgyz Republic  On 27 December 2002, by Decision 
No. AD-62/2002/52-65 of the Interdepartmental 
Commission on International Trade, final anti-dumping 
measures, in the form of an anti-dumping duty in the 
amount of 38.31% of the customs value of the 
commodity, were introduced for a period of five years. 
Matches 
(HS code – 3605 00 00 00) Russian Federation 
Republic of Belarus On 12 September 2003, by Decision 
No. AD-81/2003/52-123 of the Interdepartmental 
Commission on International Trade anti-dumping 
measures were taken in the form of an anti-dumping 
duty in the amount: 
 
for commodities originating from the Russian 
Federation:  
 
- production of Private JSC "Plitsichprom" 
(Balabanovo) – 0%; 
- other producers – 8.8%; 
 
for commodities originating from the Republic of 
Belarus: 
 
- production of Private JSC "Pinskdrev" (Pinsk)- 
31.8%; WT/ACC/UKR/114 
Page 36  
 
 Commodity that is subject to the 
Antidumping 
Investigation Country of Origin of the 
Commodity Results of Investigation and Measures Taken 
- production of Public JSC "Borisovdrev" 
(Borisov) – 68.7%; 
- other producers – 95.7%. 
 
The term of antidumpi ng measures expires in five years.  
Ongoing Anti-dumping Investigations 
Fibre sheets 
(HS code – 4411 19 00 00) Poland On 20 August 2003, by Decision No. AD-76/2003/52-
122 of the Interdepartmental Commission on 
International Trade, prelim inary anti-dumping measures 
were introduced in the form of an anti-dumping duty in 
the amount of 20.31% of the customs value of the 
commodity. The term of preliminary antidumping 
measures expires in one hundred and twenty days. 
Sewer pipes of cast-iron 
(HS code – 7303 00 90 00) Russian Federation Investigation in stituted by Decision No.AD-74/2003/52-
126 of 6 May 2003.  Investigation is going on. 
Citric acid 
(HS code – 2918 14 00 00) People's Republic of 
China On 10 October 2003, by Decision No. AD-82/2003/52-
125 of the Interdepartmental Commission on 
International Trade, prelim inary anti-dumping measures 
were introduced in the form of an anti-dumping duty in 
the amount of 130% of the customs value of the 
commodity.  The term of  preliminary antidumping 
measures expires in one hundred and twenty days.. 
  
  WT/ACC/UKR/114
 Page 37Table 14  
Country Commodity - subject of investigation Investig ation started Investigation completed Measures taken 
1 2 3 4 5 6 7 
  Date and number of 
decision Date of publication of 
decision Date and number of 
decision Date of publication of 
decision Size of annual safeguard 
quota 
Completed Safeguard Investigations 
Russian Federation, Slovak Republic, 
Kingdom of Belgium, 
Ireland, Poland, 
Germany and Kingdom 
of Spain Syringes with or without 
needles of plastic 
materials Decision No.SP-
13/2001/52-61 dated 
12 January 2001 18 January 2001 Decision No.SP-
17/2001/52-44 dated 
8 June 2001 21 June 2001 893464.3 kg 
Russian Federation Baking soda Decision No.SP-
24/2001/52-46 dated 
7 November 2001 14 November 2001 Decision No.SP-
44/2002/52-46 dated 
5 July 2002 10 July 2002 2,500 tons 
Russian Federation Portland cement Decision No.SP-
25/2001/52-48 dated 
13 December 2001 19 December 2001 Decision No.SP-
49/2002/52-48 dated 
7 October 2002 10 October 2002 157,500 tons 
Russian Federation New cars Decision No.SP-
28/2002/52-49 dated 
8 January 2002 11 January 2002 Decision No.SP-
54/2002/52-49 dated 
6 December 2002 12 December 2002 15,777 units 
Irrespective of country 
of origin Biscuit products Decision No.SP-
59/2002/52-54 dated 
6 December 2002 11 December 2002 Decision No.SP-
85/2003/52-99 30 December 2003 Safeguard measures 
were introduced in the 
form of a duty in the 
amount of 18.3% of the 
customs value of the 
commodity but not less 
than € 0.3 per kilo (for 
products with value not 
exceeding US$ 1.5 per 
kilo) 
Republic of Belarus, 
Russian Federation, 
Hungary, People's 
Republic of China 
(including Hong Kong 
(Siangan), Macao 
(Aomin), Taiwan) Artificial fur 
Pile fabrics Decision No.2/99 dated 
14 May 1999 20 May 1999 Decision No.SP-
67/2003/52-48 dated 
6 May 2003 (published 
on 14 May 2003) Protection measures have been terminated due to the 
expiry of their term 
Republic of Belarus, 
Poland, Russian 
Federation, Hungary Electric lamps Decision No.3 /99 20 May 1999 Decision No.SP-
70/2003/52-47 dated 
6 May 2003 (published 
on 14 May 2003) Protection measures have been terminated due to the 
expiry of their term  
 WT/ACC/UKR/114 
Page 38 Country Commodity - subject of investigation Investig ation started Investigation completed Measures taken 
1 2 3 4 5 6 7 
  Date and number of 
decision Date of publication of 
decision Date and number of 
decision Date of publication of 
decision Size of annual safeguard 
quota 
Russian Federation, 
Slovak Republic, 
Germany Magnesia fire refractory 
products Decision No.SP-
7/2000/52-47 dated 
7 September 2000 20 September 2000 Decision No.SP-
16/2001/52-43 dated 
5 June 2001 (published 
on 15 August 2001) Investigation has been completed without protection 
measures due to lack of evidence of causing damage 
to the national producer by import of the said 
commodity 
Republic of Estonia, 
Republic of Lithuania, 
Republic of Latvia, Russian Federation, 
Republic of Belarus, 
Poland, Czech Republic, 
Hungary Polyurethane sheets, 
tape, plates (foam-
rubber) Decision No.SP-9/1999 
dated 
27 September 1999 2 October 1999 Decision No.SP-
83/2003/52-49 dated 
8 October 2003 (published on 
15 October 2003) Protection measures have been terminated due to the 
expiry of their term 
Irrespective of country 
of origin Instant coffee Decision No.SP-
51/2002/52-52 dated 
7 October 2002 16 October 2002 Decision No.SP-
75/2003/52-97 dated 
6 May 2003 (published 
on 16 May 2003) Investigation has been completed without protection 
measures due to lack of evidence of causing damage 
to the national producer by import of the said 
commodity 
Ongoing Safeguard Investigations 
Irrespective of country of origin Caustic soda  Decision SP-
51/2002/52-52 dated 
7 October 2002 16 October 2002 Supervision measures 
taken according to 
Decision No.SP-
72/2003/52-96 dated 
6 May 2003 14 May 2003 Surveillance system 
Irrespective of country 
of origin Packing technical cloths Decision No.SP-
56/2002/52-53 dated 
6 December 2002 11 December 2002 Investigation is going on 
Irrespective of country 
of origin Ammonium nitrate Decision No.SP-
60/2002/52-55 dated 
10 December 2002 20 December 2002 Supervision measures 
taken according to 
Decision No.SP-
68/2003/52-100 dated 
6 May 2003 16 May 2002 Supervision measures 
taken 
Irrespective of country of origin Phosphorous-content 
mineral fertilizers Decision No.SP-
63/2002/52-56 dated 
27 December 2002 17 January 2003 Supervision measures 
taken according to 
Decision No.SP-
69/2003/52-101 dated 
6 May 2003 29 May 2003 Supervision measures 
taken 
Irrespective of country 
of origin Pipe billet of alloyed 
steel Decision No.SP-
64/2002/52-57 dated 
27 December 1002 17 January 2003 Investigation is going on 
  WT/ACC/UKR/114 
 Page 39 
 
 
 B. EXPORT REGULATIONS 
Question 54 We welcome the detailed information provided on the various export duties charged by Ukraine 
and other restrictions imposed.  However, we note  that there continues to be a number of export 
duties and other restrictions in place.  
We would ask Ukraine to further phase out the expo rt duties, which are high for some products 
and, in some case, prohibitive for trade.  Plea se keep the Working Party informed of any plans 
to reduce and eliminate the various duties and other measures. 
Answer:
  
The export duty does not have a strong distorting impact on trade, because the Law of Ukraine "On 
Import (Export) Duty on Live Animals and Raw Hid es Materials" allows the agricultural producers, 
who are legal entities, to export live cattle (except for young cattle weighing 35 0 kg and less) and raw 
hides of their own production without payment of the export duty. 
Ukraine's policy shall be to gradually reduce th e export duty rate. Thus, the Customs Council of 
Ukraine approved the Draft Law "On Amendment of Some Legislative acts of Ukraine (on Export of 
Raw Hides)", which envisages the reduction of duty rate for commodity group 4101 from 30 per cent, 
but not less than € 400 per ton, to 10 per cent, but not less than € 100 per ton. The Draft is being 
considered by the Verkhovna Rada. 
Question 55 
Table 15 contains customs tariffs on cattle hides, sheep or lambs skin and pigskin.  We ask to 
abolish export tariffs (e.g. on hides and skins, metal scrap, etc.) 
Answer:   
Domestic consumption of meat and meat products is still a problem to be solved in Ukraine, because 
average per capita meat consumption had dropped fro m 68 kg to 30 kg in the last decade, and in 
industrial regions to 23-26 kg (the  minimum approved by the Ministry of Health in its Order No. 272 
from 18 November 1999 is 60 kg).  The introduction of an export duty on hides has resulted in a substantial improvement of the structure of hides e xport.  While in 1995 (prior to the introduction of 
the duty) the export consisted of US$ 85.5 million worth of hides and only US$ 19.1 million worth of 
semi-finished goods and finished leather, in  2001 these numbers were US$ 26.8 million and 
US$ 82.0 million, respectively.  Therefore, while hide resources have gene rally diminished, revenue 
had increased due to the rise in the export of pro cessed goods, improving the situation in the leather 
and shoe industry.  The utilisation of leather factories' capacity had increased from 15-20 per cent to 60-70 per cent. Ukraine still exports some hides on preferential terms to countries with which it has 
Free Trade Agreements, which means that Ukraine h as reoriented its export towards the CIS and the 
Baltic nations.  In 2001, domestic cattle and hide prices approached world prices, so producers can 
now profitably sell their goods in Ukraine. Cattle  export went down from 16,700 heads in 2000 to 
only 3,300 heads in 2001, and hide exports decr eased from 23,800 tons in 2000 to 15,900 tons in 
2001.  Finally, the law currently in force allows ag ricultural producers that are legal entities to export 
cattle (with the exception of young cattle weighing 35 0 kg and less) and hides of their own production 
without export duty. 
Article XI:1 of GATT 1994 does not apply to bans or restrictions on exports that are temporarily 
applied in order to prevent a serious shortage of  products that are of critical importance for an WT/ACC/UKR/114 
Page 40  
 
 exporting country.  According to GATT 1994 Article XX,(d), (g), and (i), Ukraine applied export 
restrictions with regard to non -ferrous metal (export duty), and prohi bited the export of scrap ferrous 
metal. Licensing was not applied. Ukraine believed that  at this time it would be premature to consider 
the elimination of export duties on oilseeds cu ltures. Export duties on sunflower seeds were 
introduced by Law No. 1033, dated 10 Septembe r 1999, as a temporary measure till 1 July 2002. 
Pursuant to the Law of Ukraine No. 2555, dated 21 June 2001, the level of rates of export duties on 
sunflower seeds was reduced to 17 per cent; however, th e term of effect of such export duties is not 
currently restricted.  The Government would prepar e amendments to Law No. 1033, to specify a term 
of effect for export duties, in order to reinstate the temporary nature of such duties. 
Question 56 
We note that Ukraine's very high export duti es on live animals and hides and skins provide a 
subsidy to Ukraine's processing industry, and that they have a strong trade-distorting impact on 
the market within Ukraine and on Ukraine's exports pf processed products, as well as a 
detrimental impact on the importation of meat  and other products.  We request that these 
export duties be eliminated by the date of accessi on and that Ukraine commit not to apply such 
export duties after accession. 
Answer:
  
The export duty does not have a strong distorting impact on trade, because the Law of Ukraine "On 
Import (Export) Duty on Live Animals and Raw Hid es Materials" allows the agricultural producers, 
who are legal entities, to export live cattle (excep t for young cattle weighing 350 kg and less) and raw 
hides of their own production without payment of the export duty. 
Ukraine's policy shall be to gradually reduce th e export duty rate. Thus, the Customs Council of 
Ukraine approved the Draft Law "On Amendment of Some Legislative acts of Ukraine (on Export of 
Raw Hides)", which envisages the reduction of duty rate for commodity group 4101 from 30 per cent, 
but not less than € 400 per ton, to 10 per cent, but not less than € 100 per ton. The Draft is being 
considered by the Verkhovna Rada. 
- Export restrictions 
Question 57 In paragraph 74, Ukraine notes that Article XI:1 of GATT 1994 does not apply to bans or 
restrictions on exports that are temporarily app lied in order to prevent a serious shortage of 
products of crucial importance for an expo rting country.  We request full information 
indicating the basis on which Ukraine has assessed that a serious shortage of products of crucial 
importance to the exporting country still exists. 
Answer:
 
Currently, Ukraine has a critical shortage of scrap fe rrous metals, which is a raw material base for the 
needs of Ukrainian metallurgy.  A permanent d ecline in scrap ferrous metal is observed on the 
Ukrainian market (from 9.9 million tons in 2001 to 8. 9 million tons in 2002, and 7.7 million tons - in 
2003).  This accounts for the shortage situation, an d the scope of meeting the needs of metallurgy 
enterprises declined.  Along with this, the needs of domestic metallurgy grow due to an increase in 
steel smelting output.  This shortage poses a threat  to the stable work of Ukrainian industry.   
As of 2003, the output of scrap storage  by scrap-storage enterprises in Ukraine decreased by 
13.9 per cent and constituted 7,711.2 thousand tons, which is  1,241.6 thousand tons less compared to  WT/ACC/UKR/114 
 Page 41 
 
 
 2002 (from 9,053.3 thousand tons to 7,711.2 thousand tons ).  It should be mentioned that the year 
2001 showed a tendency of the average annual 10 pe r cent decline in scrap metal storage:  2001 – 
9,912 thousand tons, 2002 – 8,953.3 thousand tons, 2003 – 7,711.2 thousand tons. 
To prevent the negative factors in ensuring the n eeds of metallurgy enterprises in scrap metal the 
Cabinet of Ministers and Verkhovna Rada of Ukrain e adopted the Law of Ukraine "On Export Duty 
for Waste and Scrap Ferrous Metal" No.216-IV of 24 October. 
Enactment of the Law of Ukraine No. 216-IV of 24 October "On Export Duty for Waste and Scrap 
Ferrous Metal" on 1 January 2003 made it possibl e to increase the supply of scrap metal into the 
domestic market, and by the end of 2003 this figure reached 5,906.4 thousand tons.  This allowed to 
meet the production needs of metallurgy enterprises by  91.2 per cent (the total need for scrap metal 
imported into Ukraine in 2003, according to the norms established by the Ministry, was 
6,475.4 thousand tons with the actual st eel output of 36,992 million tons).   
Judging by the offer of metallurgy enterprises, the total steel output in 2004 may reach 38,637 tons, 
which is to require 14,139 tons of scrap metal, in cluding 6,333 tons of the domestic and 7,806 tons of 
imported scrap-metal. 
In order to further liberalize the export of scrap meta l, to prevent the impedime nts associated with the 
WTO accession, and to satisfy the needs of domestic enterprises in scrap metal, the Cabinet of Ministers of Ukraine drafted Law of Ukraine "O n Amendment of the Law of Ukraine "On Export 
Duty for Waste and Scrap of Ferrous Metal", whic h provides for gradual increase in export duty rate 
for waste and scrap ferrous metal. 
Amendments to the current legislation concerning the reduction of the import duty for the said 
products, upon proposal by the Ministry of Industria l Policy, are to be considered in February 2004 
following the review of performance of the metallurgy complex enterprises in 2003.  
Question 58 
Further in paragraph 74, Ukraine indicates that export restrictions on non-ferrous metals are 
justified by GATT Article XX, (d), (g), and (i).    We see no justification under these articles for 
the measures applied by Ukraine. 
We request information on measures that are a pplied to domestic production (required to 
justify measures under Article XX(g)) and on th e government stabilisation plans that are in 
place (required to justify measures under Arti cle XX(i)).  Otherwise, Ukraine's export 
restrictions in relation to non-ferrous metals and scrap metal need to be eliminated by the date 
of accession. 
Answer:
  
According to Article 9 of Law of Ukraine No. 619-XIV of 5 May 1999 "On Scrap Metal" (in the 
wording of Law of Ukraine No.359-IV of 25 December 2002) export of scrap non-ferrous metal from Ukraine is prohibited.  Aluminium and copper alloys by  60-70 per cent, soft lead and its alloys almost 
by 95 per cent are produced of scrap metal in Uk raine.  Judging from the above, scrap and wastes 
containing copper, aluminium, lead and nickel shoul d be regarded as the strategic raw materials, the 
balance in production and consumpti on of which ensures the independence of the state as regards the 
raw materials. 
Ukraine does not have its own raw material base for the production of  pure aluminium and partially – 
for the production of virgin alloys, and the need in bauxites is met exclusively at the account of WT/ACC/UKR/114 
Page 42  
 
 imports. Another source of raw materials is the scrap metal, which satisfies the needs of cast alloy and 
deoxidizer producers by 90 per cent. 
It should be noted that the shortage of scrap me tal and non-ferrous metals explains the use of a 
considerable amount of give-and-ta ke raw materials in the non-ferrous metallurgy, where its volume 
in 2001 accounted for 44.8 per cent of the output. 
For the time being, Article 9 of the foregoing Law of Ukraine cannot be amended due to the several 
reasons: 
− scrap and wastes of non-ferrous metals are the strategic raw materials, the balanced 
production/consumption of which ensures the independence of Ukraine as regards the raw materials, since there are no ore raw material s to support the by key groups of non-ferrous 
metals.  The ban on export of scrap non-ferrous  metal is justified by the economic safety 
of the state; and 
− Ukraine has a sufficient number of speciali zed metallurgy enterprises, which use scrap 
non-ferrous metals as technologically  determined  raw materials. 
Regarding the status of the Draft Law on liberaliza tion of export of non-ferrous metal. The Cabinet of 
Ministers of Ukraine drafted the Law of Ukraine "O n Amendment of Article 9 of the Law of Ukraine 
"On Scrap Metal".  The Draft Law provides that ex port of non-ferrous scrap metal, as well as import 
of scrap non-ferrous metals outside the customs territo ry of Ukraine as give-and-take raw materials is 
prohibited for the period up to 1 January 2010.  It is taken into account that Ukraine has almost no own raw material base for production of most of non -ferrous metals, so the only internal source of 
their replenishment is scrap and wastes. 
On 3 December 2003 the Governmental Commi ttee for Economic Development and European 
Integration made a decision to consider the said  Draft Law upon its additional revision with the 
purpose of identification of a reasonable term of the ban on export of non-ferrous scrap metal, and its 
important outside the customs territory of  Ukraine as give-and-take raw materials. 
Question 59 
We seek inclusion of material in the Draft Report  in relation to internal production quotas set 
by Ukraine in relation to dom estically refined sugar.  In particular, Ukraine's Quota A 
establishes shares for producers to produce refined sugar required to be sold on the domestic 
market and not exported.  The measure is intend ed to restrict the export of sugar and ensure 
national needs for refined sugar are met from domestic production.  As this measure serves to restrict exports as well as discourage imports (th rough displacement in the local market), it 
constitutes a prohibited restriction under Article XI of GATT 1994.  It also constitutes a 
prohibited TRIMs in the meaning of Annex 2 (c) of the TRIMS Agreement which restricts the 
sale for export of products, whether specified in terms of particular products, in terms of 
volume or value of products, or in terms of a proportion of volume or value of its local 
production. We seek inclusion of material in th is section that identifies this issue, and request 
the abolition of this prohibited restriction. 
Answer:
  
Domestic law sets a quota on production (the "A Quot a") of processed (refined) sugar from sugar 
beets, which sugar must be sold, pursuant to requi rements, on the domestic market and must not be 
exported.  In addition to the A Quota, however , there exist the B Quota and the C Quota under 
effective law.  The B Quota relates to suppli es of sugar outside Ukraine in accordance with 
international treaties, and the C Quota concerns th e sugar that has been pr oduced in excess of the А  WT/ACC/UKR/114 
 Page 43 
 
 
 Quota and the B Quota and is intended for sale by its  owners exclusively outside the country.  Due to 
this, the A Quota may not be regarded as a restri ction on exports and a hindrance to imports.  In 
addition to the above referenced Quotas, the tariff quota for raw cane sugar is also allocated.   
Question 60 
Minimum "indicative" export prices are enumerated towards the end of paragraph 20 and 
listed at Annex 4. Ukraine needs to supply suffici ent information to clarify why these should not 
be considered export restrictions, or  related to export restrictions. 
Answer:   
Clause 4 in Article 189 of the Commercial Code of Ukraine, dated 16 January 2003, under No. 436-
IV, which entered into force as from 1 January 2004, provides that in payments under export and 
import transactions with foreign pa rtners shall be applied contract (foreign trade) prices that are 
formed pursuant to prices and conditions on the world market and indicative prices. 
Pursuant to the Decree of the Ukrainian Preside nt, dated 10 February 1996, under No. 124/96, "On 
Measures aimed to improve Market and Price Poli cies in the Area of Foreign Activities", contract 
prices in the area of foreign economic activities ar e determined by Ukrainian subjects engaged in 
foreign economic activities [business entities and persons  engaged in foreign trade] on a contractual 
basis, taking account of supply and demand and othe r factors existing on applicable markets at the 
time of entry into foreign economic agreements (cont racts) and, in cases specified by this Decree, 
pursuant to indicative prices.  The said indicative prices are set by the Ministry of Economy and on Issues of European Integration of Ukraine. 
Indicative prices mean prices for products that co rrespond to prices, which have developed or are 
developing for a specific product on an export or im port market at the time an export (import) 
transaction is accomplished, taking account of deliv ery terms and payment conditions specified by 
Ukrainian law. 
Indicative prices are binding on business entities [subject s of entrepreneurial activity] when they enter 
into sale-purchase contracts. 
While setting the indicative prices, the Ministry tak es account of product quality standards in effect in 
Ukraine, delivery and payment terms that are rec ognized in world practice and provided by Ukrainian 
law, the situation on external and internal markets,  information on prices (average prices that have 
developed on a given geographic market and forecasts on possible price fluctuations), contractual practices with respect to a specific product and ot her situation- and pri ce-related information. 
Indicative prices are set for the following products:  
− in relation to exports of which products  there have been prescribed anti-dumping 
measures or there have been commenced an ti-dumping investigations or procedures 
within or without Ukraine;   
− in relation to which products there are a pplied special import procedures pursuant to 
Article 19 of the Law of Ukraine "On Foreign Economic Activities";  
− in relation to exports of which products th ere has been imposed a regime of quotas, 
licensing;  
− in relation to exports of which products th ere have been imposed special regimes;  
− products that are exported pursuant to proce dures specified in Article 20 of the Law of 
Ukraine "On Foreign Economic Activities"; and 
− in other instances in implementation of Ukraine's international commitments.  WT/ACC/UKR/114 
Page 44  
 
 In accordance with effective law, the indi cative prices are set for the following products: 
− for live cattle and leather raw materials (Law of Ukraine No. 180/96-VR, dated 
7 May 1996, "On the Export Duty for Live  Cattle and Leather Raw Materials"; and 
− for sunflower seeds, flax and rye (Law of Ukraine No. 1033-XIV, dated 
10 September 1999, "On Export Duty Rates for Seeds of Some Oil Crops".  
In accordance with Section IV.D of the Agreem ent suspending the antidumping investigation on 
products from cut carbon rolled steel from Ukraine entered into between the US Department of 
Commerce and Ukraine in 1997, indicative prices shall be set for products from cut carbon sheets. 
The list of products originating from Ukraine, which fall under anti-dumping procedures, include: 
ferrosilicium, ferrochrome silicon, ferromagnesium silicon, carbamide, rolled steel, heavy sheet rolled 
metal, ammonia and ferroc oncrete reinforcements. 
Contract prices for all other products in the area  of foreign economic activities are determined by 
Ukrainian subjects engaged into foreign economic activities [business entities and persons engaged in 
foreign trade] on a contractual basis and taking account of supply and demand and other factors 
existing on applicable markets at the time of en try into foreign economic agreements (contracts).  
Question 61 
Ukraine should outline all consequences that m ay follow from failure to export these products 
at these prices, and whether such failure would le ad to prohibition of export, any other border 
restriction applicable to exports (including, e.g ., a voluntary export restraint), or any internal 
measure on the exporter. 
Answer:
  
In accordance with Order No. 547- а of the Ministry of Foreign Ec onomic Relations and Trade, dated 
31 August 1998, in the event that the price of an  agreement deviates from an indicative price for 
products, which deviation may result from factors that have a direct impact upon the price (the type of 
agreement, product delivery terms, deviation of product quality indi cators from a Ukrainian standard, 
other factors that have an essential impact upon cond itions under which transactions are carried out), 
for purposes of customs clearance of such products it is necessary to provide an expert conclusion of 
the State Informational and Analytical Centre for Monitoring of External Commodity Markets 
(Derzhzovnishform), which is authorized, pursuant to the Decree of the Ukrainian President, dated 
10 February 1996, under No . 124/96, to provide expert assistan ce to enterprises, institutions and 
organizations in the course of their engagement  into foreign economic activities on the basis of 
additional documents furnished by an applicant,  which documents confirm the validity of such 
deviation. 
Hence, products, for which indicative prices are se t, may be exported from Ukraine at prices that 
differ from indicative prices. 
 - Export Licensing Procedures 
Question 62 We support the request for Ukraine to remove, by the date of accession, WTO-inconsistent 
policies in relation to exports of live animals,  hides and skins, non-ferrous metal scrap and 
sunflower seeds and commit not to introduce or revert to any such export restrictions after 
accession.    WT/ACC/UKR/114 
 Page 45 
 
 
 Answer:   
Ukraine understands its commitments as a Member of th e WTO.  Ukraine will continue to act in strict 
compliance with the commitments it assumes in the course of preparing the Report of the Working 
Party. 
Question 63 Like other WTO Members, we would like to st ress our interest regarding the abolition of 
Ukrainian export licensing on live animals, hides and skins, and non-ferrous metal scrap 
(Paragraph 76) 
Answer:
  
Export of live cattle, hides and scrap non-ferrous metals are not subject to  licensing in Ukraine.  In the 
context of paragraphs (g), (i) of GATT Article XX , export on scrap non-ferrous metals is prohibited in 
Ukraine. 
- Export subsidies 
Question 64 We welcome the commitment by Ukraine to bind export subsidies at zero upon accession.  This 
undertaking by Ukraine relates to agricultural products, and should be reflected under the 
heading "Policies affecting Foreign Trade in Agricu ltural Products', rather than in this section. 
We propose it be moved to the correct Section of the Report. 
Answer:
  
These comments will be taken into account in the c ourse of preparing the final version of the Report 
of the Working Party. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies Question 65 A lot of information is already contained in the text in various sections. With reference to 
paragraph 47, we would, however, request that  like other countries in the accession process, 
Ukraine provides a subsidy notification according to Article 25 ASCM. 
Answer:
  
Ukraine is developing a draft notification on th e existing subsidies in compliance with the 
requirements of Article 25.1 of the Agreement on Subsidies and Countervailing Measures, which will 
be provided to the WTO Secretariat. 
Question 66 With regard to paragraph 80, we will seek clear commitments from Ukraine.  WT/ACC/UKR/114 
Page 46  
 
 Answer:
  
Ukraine expects to deal fully with  the questions of its commitments in the context of preparation of 
the draft Report of the Working Party. 
Question 67 
Joining to the request expressed by other WTO Members, we ask Ukraine to undertake 
commitments not to apply subsidies (including  also export subsidies), which are regarded 
prohibited in the meaning of Article 3 of WTO Agreement on Subsidies and Countervailing Measures. 
Taking into account the interest of Latvian en trepreneurs that operate in the field of ship 
building and repairing, only subsidies that are designed to environment protection, research, 
restructuring or regional development, in the me aning of Article 8 of Agreement on Subsidies 
and Countervailing Measures, in this field are to be supported. 
Answer
:  
Ukraine is fully aware of the oblig ations resulting from its membership in the WTO and stands ready 
to come to an agreement about the size of obligations  in the process of preparation of the final draft of 
the Working Party Report. 
Taking in to account the interest of Latvian entrepre neurs, who operate in the area ship-building, we 
would like to inform of the following. Draft Law of Ukraine "On State Budget of Ukraine for 2004" envisages introduction of amendments to certain pr ovisions of the Law of Ukraine "On Value Added 
Tax", related with subsidization of Ukrainian indust ry. In particular, the provision will be abolished 
which foresees VAT exemption for transactions of im portation (shipment) into the Customs Territory 
of Ukraine of materials, equipment and assembling parts (hereinafter – goods), used for purposes of 
ship building (except for excisable  goods), in case such goods are not produced by enterprises within 
the territory of Ukraine or in case such produced  goods do not comply with the Certification 
requirements of the International classification partners hips or do not comply with the requirements of 
the Clients and with the identified Contract provisions .  The draft law is expected to be adopted in 
early 2004. 
Question 68 
Subsidies to the Coal Mining Enterprises:  In paragraph 78 (on page 53) Ukraine states that the 
Resolution of the Cabinet of Ministers of Ukraine No. 1733 of 27 December 2001 "On approval of procedure for identification and provision of the State support to the Coal Mining Enterprises" will provide state support to coal mining enterprises with substantial production 
reserves of quality coal but which are unable to support production with their own funding. 
Can Ukraine provide information of how such assessments are made?  Can Ukraine confirm 
whether subsidies are paid to enterprises that wo uld normally not be commercially viable or all 
enterprises are eligible for assistance? 
Answer:
 
Resolution No. 1311 of the Cabinet of Minister s of Ukraine, dated 21 August 2003, approved 
Procedures for Provision and Identification of Amo unts of State Support to Coal Mining Enterprises 
for Partial Coverage of Production Cost and Constr uction and Technical  Re-equipment of Enterprises 
producing Coal, Lignite (Brown Coal) and Peat.  This  Resolution suspended the effect of Cabinet of  WT/ACC/UKR/114 
 Page 47 
 
 
 Ministers of Ukraine Resolution No. 1733, dated 27 December 2001, whose provisions caused 
questions from this Member.  
Amounts of State support are determined on the b asis of assessment of enterprises' performance 
pursuant to economic indicators and production potential, as well as according to programs of 
enterprises' operations for a given year. 
The main economic indicators used to determine amounts of State support are volumes of coal 
products and expenses associated with their production. 
Volumes of marketable coal products are determ ined for coal mining enterprises based on planned 
range of products and approved qu ality indicators, as well as from maximum levels of prices that 
developed on the coal market in the previous year. 
Expenses related to costs of production of marketab le coal products shall be determined for coal 
producing enterprises pursuant to specific percen tages of expenses relating to material-technical 
resources and human resources and production-relate d services, which expenses are to be calculated 
for the past year, as well as prices for these resources and services in the domestic market. 
Amounts of State support shall be allocated, within the allowed limits of relevant budget lines, by the 
Industry Commission established by the Ministry of Fuel and Energy. Decisions of the Commission 
must be approved by the Ministry of Fuel and Energy.  
On the basis of reported indicators for the enterp rises' production and financial operations, at least 
once a month the said Commission sh all assess the efficiency with which funds are used, and shall 
furnish to the Ministry of Fuel and Energy proposals on adjustments to the amounts of State support for the next period. 
State support for partial coverage of expenses relate d to the cost of production of coal products is 
provided to coal mining enterprises (except for coal  mining enterprises that must be prepared for 
liquidation), irrespective of their forms of owne rship, whose coal products are included onto a 
demand balance sheet and a forecast on domestic coal that is prepared by the Ministry of Fuel and 
Energy, and which enterprises are obligated to ensure an increase of efficiency in coal mining if such 
support is provided, in particular to reduce productio n expenditures and to improve work productivity.  
State support is provided on a condition that the volum e of marketable coal products in forecast sale 
prices does not cover production expenditures. 
Question 69 
Ukraine also states that subsidies will be provi ded directly to enterprises reimbursing them for 
production costs and expenses related to ca pital investments. What is the level of 
reimbursement and what are the elig ibility criteria for such subsidies? 
Answer:
 
State support to mining enterprises is provided according to State policies in the area of mineral 
mining regulation and principles of State policies for th e mineral mining industry  that are governed by 
the Mining Law of Ukraine. 
Pursuant to the above referenced indicators, an av erage level of actual c overage of production costs 
with State support for all eligible enterprises tota lled 10 per cent according to the results for nine 
months of 2003. WT/ACC/UKR/114 
Page 48  
 
 Pursuant to the Concept for Restructuring of the System of State Subsidies for Industries of the 
National Economy, as approved by Order No. 182- р of the Cabinet of Ministers of Ukraine, dated 
31 March 2003, the total amount of subsidies must not exceed 5 per cent of the cost of products. 
Due to a policy undertaken to stabilize and stru cturally reorganize the coal industry, where 
re-organization commenced in 2002-2003, there is a possibility to achieve a full financial balance 
both in the entire industry and with respect to  each state-owned coal mining enterprise on the 
condition of implementation and rea lization in full of the program "Ukrainian Coal", approved by 
Resolution No. 1205 of the Cabinet of Ministers of  Ukraine, dated 19 Septem ber 2001.  All measures 
must lead thereafter to a decrease in the coverage of costs of production of coal products through State 
support. 
Pursuant to the Regulation, as approved by Reso lution No. 1311 of the Cabinet of Ministers of 
Ukraine, dated 21 August 2003, eligibility to receive  State support is determined by the Industry 
Commission  subject to the condition that: 
− The enterprise has considerable production reserves of quality coal; 
− The enterprise is unable to support production with its own funding, if the modernization 
of such production is advisable; 
− The enterprise posts losses as a result of its operations during the last reporting year; and 
− The enterprise has provided objective informa tion on its financial and economic position. 
In order to ensure transparency in the course of determination of eligibilit y to and amounts of State 
support, specialists from the Ministry of Fuel and Energy have been preparing a mechanism, whereby 
State support will be provided to coal mining enterprises. 
Question 70 
The Ministry of Fuel and Energy identifies the planned cost of production and the scope of 
expenditures for capital investment, including on the basis of targets for production of coal 
products.  Can Ukraine elaborate on the basis fo r the identification of target amounts for the 
production of coal products, and how much of the production assisted by the subsidies is 
exported? 
Answer:
 
Proceeding from a production balance sheet and an allo cation by main directions of the use of coal 
products from resources of enterprises of the Ministry  for each year, the Ministry of Fuel and Energy 
identifies deficit types of coal each year.  State support for construction and technical re-equipment is 
provided to cover the deficit through an increase of production of such types of coal. 
According to the results for nine months of the year 2003, actual production of ready coal totalled 
44.6 million tons, out of which 1.1 million tons  was exported, which totals approximately 
2.5 per cent.  Sixty-seven per cent of energy coal  exported from Ukraine was exported by mines that 
do not receive State support to cover expenses relatin g to costs of production of coal products or that 
received such support for a short period of time at  the beginning of 2003.  Thirty-three per cent 
(363.5 thousand tons) of coal was exported by mine s that received State support, which support costs 
at the level of 9 per cent.  In this respect, according to the results for nine months, 77 per cent of total 
costs were covered by enterprises' own revenues,  9 per cent were covered by state support and 
14 per cent were not covered (losses).  WT/ACC/UKR/114 
 Page 49 
 
 
 - Technical barriers to trade, sa nitary and phytosanitary measures 
Question 71 We welcome the additional information provide d by Ukraine in relation to its TBT regime 
(WT/ACC/UKR/113).  We note that accordin g to WT/ACC/UKR/113, Ukrainian legislation 
does not appear to reflect fully the TBT provisions.  In particular: 
(i)   Article 2.3 on the procedure of application of technical regulations 
The principle that technical regulations shall not be maintained if their objectives can be 
addressed in a less trade-restrictive manner does not appear to be reflected in Ukrainian 
legislation. Can Ukraine indicate other relevant provisions of regulations that may embody this 
principle? 
Answer:
 
Depending on an area of application of technical regulations on conformity assessment, the provisions 
of Article 2.3 of the TBT Agreem ent are taken account of in specific technical regulations if it is 
provided by an applicable EU directive.  
In particular, Clause 8.6 of the Technical Regulation on Conformity Assessment for Lifts provides:  
"Not later than the 30 June 2008, following consul tations with central agen cies of executive power 
and on the basis of reports from authorized agenci es, the State Committee of Ukraine for Technical 
Regulation and Consumer Policy must revise the pr ocedures prescribed by this Technical Regulation 
and, if need be, must formulate propo sals regarding the necessary amendments". 
At present, the process of improving the system of technical regulation is underway in Ukraine taking 
into account international practice, in particular  a transition from mandatory standards to voluntary 
standards, adoption of regulations (technical regulations on conformity assessment), wherein  
mandatory requirements for certain types of products are prescribed.  
Currently, the first 11 technical regulations on c onformity assessment prepared on the basis of the 
European Union Directives of the New Approach  are only being implemented into Ukraine's 
legislation (one of them was approved by Resolution No. 1585 of the Cabinet of Ministers of Ukraine, 
dated 7 October 2003, and the remaining 10 technical  regulations, including the technical regulation 
on lifts, were approved by Orders of the State Committee of Ukraine for Technical Regulation and 
Consumer Policy, dated 31 December 2003, in accordance with Resolution No. 2022 of the Cabinet 
of Ministers of Ukraine, dated 26 December 2003, whereby the State Committee of Ukraine for Technical Regulation and Consumer Policy was de legated relevant powers).  The said documents 
undergo preparation to be submitte d to the Justice Ministry of Ukraine for State registration. 
Following the acquisition of some experience as to  how technical regulations work, there will be 
additionally prepared a procedure for revising th e said documents in accordance with the provisions 
of Article 2.3 of the TBT Agreement.  
We would be grateful for information on such procedures in the Members of the Working Party 
considering Ukraine's application for accession to the WTO.  WT/ACC/UKR/114 
Page 50  
 
 (ii)   Article 2.7 
Ukraine indicates adoption of technical regulatio ns of other WTO members is considered at the 
bilateral basis and through participation in in ternational (regional) certification systems.  
Article 2.7 addresses recognition of other Memb er's regulations as ‘equivalent' rather than 
‘adoption' of regulations of others.  Ukraine refers to Article 6 of its Law "On Conformity 
Assessment" and scope under it to conclude  international agreements on conformity 
assessment.  It does not indicate whether this provides scope for recognition of equivalence of 
another Member's technical regulation(s). Can Ukraine indicate relevant provisions which 
provide for the recognition of regulations of other members? 
Answer:
 
Article 2.7 of the TBT Agreement specifically provides for a possibility to recognize other WTO 
Members' regulations as equivalent rather than ad opt them. Ukrainian law provides for recognition of 
other countries' technical regulations as equivalent, in first place, of internationally recognized ones 
(Article 5 of the Law of Ukraine "On C onformity Assessment", paragraphs 4, 6). 
Pursuant to the TBT Agreement, technical regulatio ns, which are being drafted in Ukraine, lay down 
requirements that must be obligatorily complied with (paragraph 15 in Article 1 of the Law of 
Ukraine "On Conformity Assessment" and paragra ph 1 in Article 13 of the Law of Ukraine "On 
Standardization". 
It is possible for technical regulations to contain references to standards, th e voluntary application of 
which may be regarded as proof of conformity of products with the technical regulations. 
Articles 6 and 21 of the Law of Ukraine "On Confor mity Assessment" deal with the conclusion of 
international agreements (treaties) in the area of  conformity assessment for the recognition of results 
of conformity assessment work, whose basis may be constituted by the requirements of applicable 
technical regulations. 
(iii)   Article 2.9 
We note reference in this section to Standard DSTU 1.12-2002 on "Rules of providing 
notifications to trade partners of Ukraine". Can Ukraine indicate whether this regulation 
captures the requirements of Article 2.9.1.-2.9.4 of the TBT Agreement? 
Answer:  
Yes, this standard captures the requirements of  Article 2.9.1-2.9.4 of the TBT Agreement. 
This standard lays down the basic provisions dea ling with the processing of notifications to trade 
partners of Ukraine regarding technical regul ations and standards or conformity assessment 
procedures, which are in effect or are developed in  Ukraine and which may aff ect trade relations with 
other countries. 
(iv)   Article 3.1-3.5 
Ukraine's response and legislative references do not indicate how Ukraine meets its 
requirements under these provisions in relation  to local government and non-government 
bodies within their territories. We seek greater explanation of how these provisions are reflected 
in Ukrainian law or regulations.  WT/ACC/UKR/114 
 Page 51 
 
 
 Answer:   
The Law of Ukraine "On Standardization" provides that  a technical regulation shall mean a rule that is 
enacted by a government authority.  
Pursuant to the Law of Ukraine "On Conformity Assessment", technical regulations on conformity 
assessment shall be prepared by central agencies of executive power. Lists of central agencies of 
executive power that are charged with functions of technical regulation in designated areas and 
functions of drafting of technical regulations are approved by Resolution No. 288 of the Cabinet of 
Ministers of Ukraine, dated 13 March 2002. 
Pursuant to Ukrainian law, local government and n on-government bodies are not authorized to adopt 
technical regulations, which may affect foreign trade.  
Question 72 Ukraine notes in paragraph 85 that "with transition period… prior to the introduction of 
technical regulations, the UkrSEPRO certification system shall operate".  We seek clarification 
of the transition periods referred to and note  that Ukraine will be expected to meet the 
provisions of the TBT Agreement upon accession without transition periods. 
Answer:
 
Pursuant to the Law of Ukraine "On Conformity Assessment", conformity of products must be 
assessed in accordance with technical regulations on  conformity assessment that are developed on the 
basis of international standards.  Here, proce dures for assessing the conformity of imported products 
are applied on conditions that are not less favourable  than those that are provided for suppliers of 
similar products of domestic origin, which complies w ith clauses 2.1; 2.2 in Article 2 and clause 5.1.1 
in Article 5 of the Agreement on Technical Barriers to Trade. 
The UkrSEPRO certification system, which operates in Ukraine pursuant to the requirements of 
Decree No. 46-93 of the Cabinet of Ministers of Ukraine, dated 10 May 1993, "On Standardization 
and Certification" (in the part relating to provisions  dealing with certification) prior to the introduction 
of technical regulations, is also directed at  complying with the basic provisions of the 
TBT Agreement, in particular at ensuring nationa l treatment and most favoured nation treatment for 
products that are imported. 
Question 73 
We note that Ukraine intends to address the i ssue of commitments in the framework of the 
drafting of the actual Working Party Report.  We  thus reserve our right to come back to these 
points at a later stage and to contribute to the drafting of commitments as appropriate. 
Answer:   
Ukraine expects to deal fully with  the questions of its commitments in the context of preparation of 
the draft Report of the Working Party. WT/ACC/UKR/114 
Page 52  
 
 - Sanitary and phytosanitary measures 
Question 74 We note that Ukraine intends to address the i ssue of commitments in the framework of the 
drafting of the actual Working Party Report. We thus reserve our right to come back to these 
points at a later stage and to contribute to the drafting of commitments as appropriate. 
Answer:
  
Ukraine expects to deal fully with  the questions of its commitments in the context of preparation of 
the draft Report of the Working Party. 
- Trade-related investment measures 
Question 75 
We seek the reflection of additional prohibited  TRIMS applied by Ukraine in relation to its 
sugar market regulation.  These include: 
− Ukraine's policy of mandatory exportation of sugar refined domestically from raw 
sugar of foreign origin (as confirmed by Ukraine on page 98 of WT/ACC/UKR/110/Add.2 of 20 June 2003).   This constitutes a violation of 
Article 2.1 of the TRIMs Agreement in that it:  (i) requires the use by an enterprise 
of goods of domestic origin in terms of the value or volume of local production; and 
(ii) limits an enterprise's purchases or use of imported raw sugar to the volume of local products exported. We note the need  for Ukraine to abolish this requirement 
upon accession. 
− Ukraine's minimum price policies (as a means of delivering a subsidy to sugar 
producers), which constitute a prohibited TRIMs in the meaning of Annex 1(a) in that the purchase or use by an enterprise of products of domestic origin (e.g. beet) is 
required to obtain an advantage on the sa le of refined sugar.  We seek the removal 
of minimum internal prices on sugar. 
Answer:
  
Minimum prices for sugar in Ukraine are set irresp ective of which raw sugar such sugar is refined 
from – sugar beets or raw cane sugar, but they have a direct impact upon Ukrainian domestic 
producers of sugar beets rather than upon producers of sugar cane, as this agricultural crop just is not 
grown in the country.  The application of minimum prices for support of agricultural products is in 
compliance with Article 6 of the Agreement on Agriculture and, therefore, Ukraine does not 
understand a request from this Member to abo lish minimum prices for refined sugar.  
Minimum prices, which are set to support producers of refined sugar, exist in other WTO Members, 
for example in the European Union, through a mech anism of intervention prices, and in the United 
States of America – for cane sugar through a mechanis m of loan rates.  Ukraine, similarly to this 
Member, believes that such a mechanism of loan rates and intervention prices, like the Ukrainian 
minimum prices for sugar, are trade-distorting measures that hinder imports (by way of ousting 
thereof from the domestic market with domestic pr oducts), but Ukraine understands, in contrast to 
Australia, that these regulations have a right to exist and comply with the requirements of the WTO 
Agreements and, in particular, the WTO Ag reement on Agriculture.  Hence, Ukraine sees no  WT/ACC/UKR/114 
 Page 53 
 
 
 prohibited TRIMs measure in the meaning of Article 1(a) (paragraph 1 а) in the setting of the 
minimum prices for refined sugar.   
Question 76 
Ukraine's internal production quota for sugar  under which producers are required to sell a 
fixed quantity of refined sugar on the domestic market.  The measure was intended to restrict 
the export of sugar and ensure national need s for refined sugar were met from domestic 
production.  As this measure serves to restrict exports as well as discourage imports (through 
displacement in the local market), it consti tutes a prohibited TRIMs in the meaning of 
Annex 2 (c) of the TRIMs Agreement in that it re stricts the sale for export of products, whether 
specified in terms of particular products, in term s of volume or value of products, or in terms of 
a proportion of volume or value of its local production.  We seek inclusion of this issue in this 
section and request the abolition of this prohibited restriction. 
Answer:   
Domestic law sets a quota on production (the "A Quot a") of processed (refined) sugar from sugar 
beets, which sugar must be sold, pursuant to requi rements, on the domestic market and must not be 
exported.  In addition to the A Quota, however , there exist the B Quota and the C Quota under 
effective law.  The B Quota relates to suppli es of sugar outside Ukraine in accordance with 
international treaties, and the C Quota concerns th e sugar that has been pr oduced in excess of the А 
Quota and the B Quota and is intended for sale by its  owners exclusively outside the country.  Due to 
this, the A Quota may not be regarded as a restri ction on exports and a hindrance to imports.  In 
addition to the above referenced Quotas, the ta riff quota for raw cane sugar is also allocated.  
Consequently, the request of Australia is groundless.  
- State-trading entities 
Question 77 We kindly ask representatives of Ukrainian delegatio n to specify the areas of national economy, 
where enterprises mentioned in paragraph 95 opera te, we also request to characterize shortly 
fields of their activity. 
Answer:
  
With respect to the enterprises mentioned in para graph 95 it should be stated that though the above-
mentioned enterprises contain the wording "state ente rprise", they actually do not enjoy any exclusive 
or special privileges in the meaning of Article XVII GATT 1994.  The Draft Report will contain information on the following enterprises.  
Question 78 We look forward to receiving further info rmation, as stated in paragraph 97. 
Answer:
  
The appropriate information mentioned in the para graph 97 has been provided to the Secretariat for 
dissemination among the Working Party Members. WT/ACC/UKR/114 
Page 54  
 
 - Free zones, special economic areas 
Question 79 We attach great importance to the commitments  as phrased in paragraph 117. Ukraine must 
ensure that Special Economic Zones and Priority  Development areas are fully subject to WTO 
obligations.  In particular:  
− applying normal taxes, tariffs, customs ch arges and other regulations to imports of 
goods from those zones into the rest of Ukrainian territory;  
− not making the right to establish and op erate in these areas dependent on their 
export performance, trade balancin g, or local content criteria; and 
− and observing the provisions of the WTO Agreement on Subsidies and 
Countervailing Measures (e.g. in providing incentives for establishment of firms in 
the free zones) as well as the provisions of the TRIMs and TRIPS agreements. 
Answer:
  
Draft Law of Ukraine "On Imposing the Moratorium  for Consideration and Approval (Confirmation) 
of New Investment Projects in Special (Free) Econom ic Zones and Territories with Special Regime of 
Investment Activity" No. 4229 was submitted by th e Cabinet of Ministers of Ukraine to Verkhovna 
Rada for consideration on 6 October 2003.  The draft Law provides for: 
− elimination of practices whereby the subjects ope rating within the special territories try to 
obtain the increase in the scope of benefits by way of changing the  projects that are being implemented.  It is proposed to define in the draft Law the conditions and procedures for 
making changes to an approved investment pr oject and an executed agreement (contract) 
for its implementation; 
− augmenting of export orienta tion of production in Special Economic Zones.  It is 
proposed to make changes to the customs re gime established in the SEZ "Azov", the SEZ 
"Donetsk" and the SEZ "Zakarpattia", in order to orient the production of goods therein 
for export; 
− improvement of regulation of the privilege d regime of taxation within the special 
territories.  It is proposed in the draft Law to  include an additional rule specifying a term, 
within which the benefits are effective in th e course of implementation of the investment 
projects in the special territories: with the beginning being when an agreement (contract) 
for implementation of the project is entered into, and the end being when the amount of 
benefits granted reaches the amount of invest ments; and to provide that the privileged 
regime for corporate profit taxation begins to operate as from the date, on which the 
minimum amount of an investment pursuant to law is made; 
− discontinuance of grants of tax benefits re lating to the imports of goods with a high 
taxation level.  It is proposed to cancel a ll privileges that are applicable to imports 
(exports) of goods and other articles for exci sable goods and products in Groups 1-24 of 
the Ukrainian Classification of Goods for Fore ign Economic Activity within the Special 
Economic Zones with the special custom s zone regime (the SEZ "Azov", the SEZ 
"Donetsk", the SEZ "Reni", the SEZ "Porto-Franco", the SEZ "Krakovets", the SEZ "Zakarpattia", the SEZ "Port Krim"), as well as to cancel the import duty benefits for raw 
materials and value added tax benefits a pplicable to the imports of machinery 
(equipment) and component parts thereto; 
− establishment of sanctions for an investor for a failure to fulfil the terms and conditions of 
an agreement (contract) in the course of impl ementation of an investment project in the 
special territories.  For this purpose, the scope of liability of the investor is determined in  WT/ACC/UKR/114 
 Page 55 
 
 
 the event of the investor's failure to fulf il obligations as are set out in the agreement 
(contract) for implementation of the investment project; and 
− prevention of importation of outdated equipmen t under the privileged regime.  For this 
purpose, it is proposed to introduce a rule th at no tax benefits a nd customs regulation 
shall apply to the importation into Ukraine's customs territory of machinery, equipment 
and component parts thereto manufactured three years ago. 
In addition, the Draft Law envisages that un til the 1 January 2010 there shall be introduced a 
moratorium upon the establishment of new Specia l (Free) Economic Zones and upon the introduction 
of the special regime for investment activities within  new territories.  Also, th ere has been prepared a 
Draft Law "On the Approval of Moratoria upon Re views and Approvals (Ratification) of New 
Investment Projects in Special (Free) Economic Zones and Priority Development Areas", whereby 
reviews and approvals (ratification) of new invest ment projects in the Special Economic Zones and 
Priority Development areas shall be suspended until the 1 January 2010.  
For purposes of ensuring that conditions for the functioning of the Special Economic Zones and 
Priority Development areas are optimized, the following Resolutions of the Cabinet of Ministers of 
Ukraine have been adopted:  
− "On Amendments to the Sample Agreement (Cont ract) for Implementation of an Investment 
Project within a Priority Development Area or  in a Special (Free) Economic Zone", dated 
15 May 2003, under No.704; 
− "On Amendments to certain Resolutions of th e Cabinet of Ministers of Ukraine", dated 
27 August 2003, under No. 1368, laying down the rules providing: 
− that mandatory expert examinations of all changes to the projects must be carried out 
by central agencies of executive power.  In this respect, changes should not relate to 
an increase of volumes of imports of goods  and products under Groups 1-24 of the 
Ukrainian Classification of Goods for Foreign Economic Activity; 
− that decisions approving (ratifying) investme nt projects may be adopted exclusively 
in the event that there are conclusions ther efore from all central agencies of executive 
power that are involved into the performance of  expert examinations of such projects; 
and 
− the guarantees for subjects operating in th e Special Economic Zones and Priority 
Development areas with respect to settlement of disputes that arise in the course of 
implementation of the approved investment projects in the event that the list of 
priority types has been changed. 
− "On Restrictions on Imports of Certain Types of Goods from the Territory of the Special 
Economic Zone "Donetsk" into the Custom s Territory of Ukraine in 2003", dated 
10 September 2003, under No. 1435, which est ablishes maximum volumes of imports of 
certain types of meat products fully produced or  sufficiently worked over or processed within 
the SEZ "Donetsk" into the customs territory of Ukraine." 
Article 9 of the Law of Ukraine "On the State Budget of Ukraine for 2004" introduces a moratorium 
upon establishment of new, and expansion of existing,  special (free) economic zones, special regimes 
of investment activities in new territories and t echnological parks, and a moratorium upon reviews 
and approvals (ratification) of new investment and innovation projects in special (free) economic 
zones and within the territories with special regi me and investment activities, and new investment 
projects in technological parks.  WT/ACC/UKR/114 
Page 56  
 
 Question 80 
In paragraph 116, Ukraine states that an investor  may "in the course of an investment project 
implementation, attribute preference to products (works, services) of Ukrainian origin on equal 
conditions applying to price, terms of competit ion, quality, and compliance with international 
standards".  This statement was in response to our earlier question as to whether tax benefits 
and preference to entities in free zones were continge nt on local content or export performance.  
While Ukraine notes it does not link the provision of  such benefits to export performance, it has 
not provided a sufficiently clear response in relation to  local content.  We seek clarification as to 
whether eligibility for tax preferences or incentives for firms within free zones is made dependent on their purchase or use of products of domestic origin. 
Answer:
  
The legislative provision to the effect that "an inv estor may in the course of an investment project 
implementation, attribute preference to products  (works, services) of Ukrainian origin on equal 
conditions applying to price, terms of completion, qua lity, compliance with international standards" is 
of a recommendatory nature.  Business entities with in territories of special (free) economic zones, 
which use products of foreign origin in the course  of investment project implementation are also 
granted all available tax exemptions and incentive measures without application of any discriminatory 
measures.  Thus, rights to privileges or incentiv e measures for firms operating within free zones do 
not depend on their acquisition or use of goods of national origin. 
- Government procurement 
Question 81 
We note that Ukraine intends to address the i ssue of commitments in the framework of the 
drafting of the actual Working Party Report. We thus reserve our right to come back to these 
points at a later stage and to contribute to the drafting of commitments as appropriate. 
Answer:   
Ukraine expects to deal fully with  the questions of its commitments in the context of preparation of 
the draft Report of the Working Party. 
- Transit 
Question 82 With regard to the compliance of Ukraine's tran sit regime with Article V GATT, we would like 
to seek the following further clarifications at this stage: 
Article V:1:  The Ukrainian law refers to "trans port vehicles of cargoes". Is this in any way 
limited in respect of transport means, as Article V:1 encompasses all means of transport?  
Answer:
  
Ukrainian side informs that the Law has the term  "transport means", which has the following meaning 
under the Customs Code of Ukraine:  WT/ACC/UKR/114 
 Page 57 
 
 
 − transport means – any means of air, water, railroad or automobile transport, used 
exclusively for transportation of passengers and cargos through the customs territory of 
Ukraine 
Question 83 
Please clarify further the notion of "transit through one point of entry" – is this related to 
storage of goods in transit on Ukrainian territory?  
Answer:   
The term "transit through one point of entry" as is  used in the Law means the goods in transit placed 
in the warehouses for temporary storage, in customs te rminals, etc., when it is caused by such factors 
as forming of a goods consignment, reloading, chan ge of a vehicle, etc., and then these goods are 
exported into another country through this very point of entry.  
Question 84 What is the definition of "shipment" – does it mean "good"? Article V:1 also includes transit 
without goods, e.g. if an empty lorry dr ives back. Would this also be covered? 
Answer:
  
According to the Resolution of the Cabinet of  Ministers of Ukraine No. 574 of 9 June 1997 
"shipment" means: 
− the goods moved to the address of one consi gnee under one shipment document (waybill, 
bill of lading, etc.); and 
− goods belonging to legal entities or natural persons (business entities) and are moved as 
hand luggage by one natural person in a passenger cabin (saloon) of a vehicle, on board of which such person is going. 
Pursuant to the Procedure of Carrying out Cust oms Control and Customs Clearance of Goods and 
Other Items with Customs Declaration, approved by the Order of the State Customs Service of 
Ukraine No. 561 of 14 October 2002, "shipment of goods" means: 
− goods and other items, which are sent to the address of a recipient with one shipping 
document (invoice, bill of lading etc.) or forw arded with one bill of parcels or moved as 
hand luggage by one person crossing th e customs border of Ukraine; and 
− goods and other items, arriving at destination point at the same time as one dispatch to the 
address of recipient from one sende r and one point of dispatch. 
In the case indicated by the European Union delega tion an empty lorry that transits through the 
customs territory of Ukraine is deemed to be m oving under the transit customs regime, but the cargo 
customs declaration is not issued in this case. 
According to Article 200 of the Customs Code of Uk raine "Transit" is the customs regime when the 
goods and vehicles under the customs control are transferred from one customs authority to another (or within the activity zone of the same customs au thority) without any use of such goods and vehicles 
within the customs border of Ukraine. WT/ACC/UKR/114 
Page 58  
 
 Question 85 
Article V:2:  Ukrainian law does not appear to place any restrictions based on the flags of 
"ships".  Is this as broad as the term "vessels" used in Article V:2? 
Answer:
  
Yes, we hereby confirm that Ukrainian law does not place any restrictions based on the flags of 
"ships", but draw your attention that in the give n context the term "vessels" should be used, as it is 
used in Article V:2 GATT.  Pursuant to Article 3 of the Law of Ukraine "On Cargo Transit" freedom 
of transit is guaranteed by means of abse nce of any discrimination of participants. 
Question 86 
Article V:3, 4:  The reference to Article 157 of the new Customs Code and the carriage along the 
routes most convenient falls under Article V:2 but not V:3, 4 GATT. The latter rather provides 
for customs formalities, such as for instan ce no unnecessary delays or restrictions. Is this 
regulated in Ukrainian law?  
Answer:   
In pursuance to Article 9 of the Law of Ukraine "O n Cargo Transit", the control of transit cargoes and 
processing of their accompanying documentation is pe rformed according to the technological schemes 
for admission of the relevant transport means for crossing the state border of Ukraine, which stipulate the terms of such admission and regulate actions of  officers of specially authorized governmental 
executive bodies. The requirements for control of transit cargo are as follows:  
− clear regulation of the control procedure and actions of officers of specially authorized 
governmental executive bodies exclusively by legal acts;  
− competent officers of specially authorized  governmental executive bodies are financed 
exclusively from the state budget;  
− availability of necessary certified means of control;  
− simplified and express control procedure; and 
− complex, simultaneous and uninterruptible pr ocedure of all types of control; once there 
are agreements with the relevant bodies of th e neighbouring states - control is performed 
jointly.  
Pursuant to Article 3 of the Law of Ukraine ‘On Ca rgo Transit' freedom of transit is guaranteed by 
means of absence of unjustified delays and restricti ons, including those relating to the means of transit 
and exemption from any other charges, except for the unified fee charged at the state border crossing 
points of Ukraine. 
Question 87 
Please provide further information on the limitation for excisable goods.  
Answer:
  
According to Article 161 of the Customs Code of  Ukraine, one of the following guarantees may be 
applied to delivery to the destination customs au thority of goods and vehicles under customs control 
and transferred between the customs authorities:  WT/ACC/UKR/114 
 Page 59 
 
 
 − the owner of goods and vehicles or an authorized person issues a guarantee to the customs 
authority; 
− the customs authority ensures security and escorts the goods; 
− carriage of goods by the customs carrier; 
− transportation of goods under conditions of  the Customs Convention on TIR under TIR 
carnet 1975 (1975 Convention on TIR). 
In addition, the Cabinet of Ministers of Ukraine established the following limitations on the transit of 
excisable goods: 
− transportation of excisable goods (alcoholic beverag es and tobacco products) shall be 
performed only via the roads and in directions of transit through the territory of Ukraine 
and through the established checkpoints at  the customs border as determined by 
Resolutions of the Cabinet of Ministers of  Ukraine No. 484 of 6 May 1996 and No. 938 
of 12 August 1996; and 
− Resolution of the Cabinet of Ministers of Ukraine No. 484 of 6 June 1996 on the transit of 
excisable goods by automobile and railroad transport through the territory of Ukraine 
establishes the limit terms of transit. 
Transit shall not be charged with du ties, taxes and fees with the excep tion of the unified fee consistent 
with the costs associated with transit. Pursuant  to Article 165 of the Customs Code of Ukraine 
measures of guaranteeing the delivery of goods are compulsory for excisable goods. 
Question 88 
Are the deadline for the transit "reasonable" under Article V:4? 
Answer:   
Yes they are.  According to Article 158 of the Cu stoms Code of Ukraine, the time period for the 
shipment of goods to the corresponding customs aut hority of destination shall be established by the 
dispatching customs authority in accordance with the effectiv e Ukrainian standards for cargo 
transportation based on the type of transport, the iti nerary, the distance to the final destination point 
and other shipment conditions.  This time period sh all not include the storage time at the warehouses 
in case of reloading from one type of transport fac ility into another, nor the time period required for 
other cargo handling operations allowed by the customs authorities.  
Question 89 
Article V:5, 6:  Please clarify further the notion of "equal terms". 
Answer:   
"Equal terms" – means application of identical  customs procedures and conditions of customs 
clearance to goods in transit originating in different countries.  
- Agricultural policies 
Question 90 We note the discussion of Ukraine's regulatory po licies in relation to sugar in paragraph 104 
does not reflect our full concerns in relation to their consistency with GATT disciplines.  We 
request that the following issues be reflected in the text of the report:  WT/ACC/UKR/114 
Page 60  
 
 − Mandatory exportation of sugar refined do mestically from raw sugar of foreign 
origin 
− Ukraine's requirement that sugar refined loca lly from raw sugar of foreign origin be 
exported (as confirmed by Ukraine on page 98 of WT/ACC/UKR/110/Add.2 of June 2003) sets a condition on the use of raw sugar of imported origin which confers more favourable treatment to domestic beet sugar (a competitor), and therefore is in 
violation of GATT Article III:4.  
− It also constitutes a violation of Article 2.1 of the TRIMS Agreement in that it: 
(i) requires the use by an enterprise of goods of domestic origin in terms of the value or volume of local production; and (ii) limits an enterprise's purchases or use of imported raw sugar to the volume of local products exported. 
− We note the need for Ukraine to abolish this requirement upon accession. 
Answer:
 
Pursuant to Article 3.11 of the Law of Ukraine "On State Regulation of S ugar Production and Sale", 
dated 17 June 1999, under No. 758-XIV, production of sugar in Ukraine from imported raw materials 
is permitted exclusively on condition that finished products will be exported in full out of Ukraine 
within time periods specified by Ukrainian law.  Article XI:1 of GATT 1994 "General Elimination of 
Quantitative Restrictions" and Article 4 of the Ag reement on Agriculture "Market access" point out 
that:  "No prohibitions or restricti ons other than duties, taxes or other charges, whether made effective 
through quotas, import or export licenses or other measu res, shall be instituted or maintained by any 
contracting party on the importation of any product of the territory of any other contracting party or 
on the exportation or sale for export of any product d estined for the territory of any other contracting 
party".  The government will prepare and propose co rresponding amendments to the Law of Ukraine 
"On State Regulation of Sugar Production and Sale" regarding the abolishment of this requirement. 
Question 91 We note that in 2001 (and beyond) Ukraine impl emented an exception to this restriction (i.e., 
mandatory exportation) – providing for 260,000 tonnes of raw sugar (under a TRQ arrangement) to be sold on th e domestic market to cover the "deficit of sugar in the home 
market".  We seek further information on the price at which raw sugar can be sold on the 
domestic market. A requirement to sell such sugar  at a minimum price would be contrary to 
Article III of GATT 1994 in that it affords protection to domestic production.  
Answer:
  
Pursuant to effective law, minimum prices (prices fo r support) are set for refined sugar rather than for 
raw cane sugar.   
Question 92 
Ukraine employs minimum internal prices for refined sugar and beet sugar as a means of 
providing a subsidy to domestic beet sugar pr oduction and refining of local beet sugar in 
Ukraine (Ukraine has argued in its recent repli es to questions that this is consistent with 
Article 6 of the Agreement on Agriculture).  However, the use of such minimum prices in parallel with the restrictions applied to import s of raw cane sugar (i.e., the export requirement 
mentioned above), violates GATT Article III: 4 by according considerably less favourable 
treatment to imported raw sugar vis-à-vis its competitor – sugar of beet origin.  Furthermore, 
Ukraine's minimum price policies (as a means of delivering a subsidy to sugar producers) affords support to sugar processors contingent on  the use of local input (beet sugar).  This 
constitutes a prohibited subsidy in the meaning of Article 3.1(b) of the Agreement on Subsidies  WT/ACC/UKR/114 
 Page 61 
 
 
 and Countervailing  Measures, as well as a prohibited TRIMs in the meaning of Annex 1(a). We 
seek the removal of minimum internal prices on sugar. 
Answer:   
Ukraine sees no inconsistency of minimum domestic prices for refined sugar and sugar beets with the 
provisions of Article 4 of the Agreement on Agricu lture, Article III:4, XI:4 GATT and Article 3.1(b) 
of the Agreement on Subsidies and Countervailing Measu res, as well as with paragraph 1(a) of the 
TRIMs Annex (see the explanation above). 
Question 93 
Domestic Quota on Consumption:  As we have  noted under paragraph 74, irrespective of how 
Ukraine implements this domestic quota, it acts  to restrict the level of domestic refined sugar 
exported and hence discourages the importat ion of refined sugar.  The quota therefore 
constitutes a prohibited Quantitative Restriction under Article XI of GATT 1994 and a prohibited TRIM.  We request the elimination of this internal quota. 
Answer:
  
Pursuant to effective law, there is no quota on c onsumption.  Domestic law sets a quota on production 
(the "A Quota") of processed (refined) sugar from s ugar beets, which sugar must be sold, pursuant to 
requirements, on the domestic market and must not be  exported.  In addition to the A Quota, however, 
there exist the B Quota and the C Quota under effectiv e law.  The B Quota relates to supplies of sugar 
outside Ukraine in accordance with international treaties, and the C Quota concerns the sugar that has 
been produced in excess of the А Quota and the B Quota and is intended for sale by its owners 
exclusively outside the country.  Due to this, th e A Quota may not be regarded as a restriction on 
exports and a hindrance to imports.  In addition to  the above referenced Quotas, the tariff quota for 
raw cane sugar is also allocated.  Hence, this Member's request to eliminate the internal quota on 
consumption is groundless.  
Question 94 
Paragraph 104:  This paragraph lacks appropri ate factual information on the sugar regime. 
− We request the inclusion of factual inform ation indicating that a tariff-rate quota 
based policy regime had not existed until re cently.  This information should:  
(1) acknowledge that import quota restrictio ns had been applied; (2) indicate when 
the import quotas were eliminated and what  they were replaced with; (3) provide 
details of the quota volumes that had been applied during the years up until the elimination of such import quotas; (4) fully enumerate the laws and regulations 
under which such quotas had been maintained; (5) indicate that the provisions of the 
relevant laws and regulations underpinning  the quota regime are no longer used; 
and (6) state whether or not the relevant provisions of those laws and regulations exist any longer. 
− We also seek the inclusion of details of the two tariff-rate quota arrangements for 
raw cane sugar in existence during the sugar year commencing 1 September 2002, 
including quantities, in-quota and out-of- quota rates, allocation methods, other 
administration aspects, and the entry into  force and duration of, and the legal basis 
for, the arrangements.  Similar details of  all subsequent arrangements should be 
included. 
In the context of this requested information we also request the inclusion of: WT/ACC/UKR/114 
Page 62  
 
 − The observation by this Member that the regulation of the market through import 
quotas had been an important means by which Ukraine had sought to implement the objective of maintaining minimum internal prices of sugar refined from beets and thereby provide support for beet producers. 
− And a statement by this Member that it welcomed the abandonment of such means 
for maintaining minimum int ernal prices of sugar refined from beets, which are 
inconsistent with GATT Articles III:4 and XI:4 and Article 4 of the Agriculture 
Agreement. 
Answer:
  
Ukraine sees no inconsistency of minimum domestic prices for refined sugar and sugar beets with the 
provisions of Article 4 of th e Agreement on Agriculture, Article III:4 and XI:4 GATT (see the 
explanation above). 
Question 95 The additional observation by this Member that Ukraine had sought, and continues to seek, to 
apply mandatory minimum prices for the sale of domestic sugar refined from beets maintained 
by means of registration requirements for sugar refiners, an inspection regime and penalties 
applied for non-compliance with the mandatory minimum prices. 
Answer:
 
Pursuant to Resolution No. 494- р of the Cabinet of Ministers of Ukraine, dated 29 August 2002, "On 
Measures aimed to ensure that the Domestic Market is supplied with Domestic Sugar and is protected 
against Unauthorized Imports", there are specified , among other measures, measures "to ensure that 
producers and allocated sugar quantities are regist ered, and to ensure permanent control over 
wholesale prices for sugar".  Pursuant to Order No. 335 of the Ukrainian Ministry of Agrarian Policy, 
dated 17 October 2002, "On Amendmen ts to Order No. 186 of the Ukrainian Ministry of Agrarian 
Policy of Ukraine" of 20 September 2000 ("On Measur es aimed to ensure that the Domestic Market is 
supplied with Domestic Sugar and is protected agai nst Unauthorized Imports"), State registration of 
sugar producers was introduced.  Pursuant to this act, sugar refining plants , which have undergone 
State registration and obtained State Registration Cer tificates for Sugar Refining Plants within the A 
and B Quotas on the basis of comprehensive inspec tion findings and attestation, are eligible to 
participate in a tender involving allocations of sugar production within the A and B Quotas.   
Contenders shall be subject to comprehensive insp ections once every five years.  Elements of a 
comprehensive inspection must contain:   
− an analysis of the production process (gro wing, gathering, acceptance and storage of 
sugar beets, improvement of technological  processes, an energy balance and thermal 
indicators of the processes, a water balance and use of water, a degree of production 
automation, organization of labour, en vironmental purity of production); and 
− proposals of inspectors as to improvements and development of production (a system for 
growing of sugar beets, a sugar beet accep tance and storage scheme, a technological 
schema of production, a heat and water u sage scheme, a comprehensive automation 
scheme, a labour organization system, techni cal solutions that ensure environmental 
purity of production).  
Contenders are certified on an annual basis by th e Commission for Attestation and State Registration 
of Sugar Refining Plants – Producers within the A and B Quotas (hereinafter referred to as, the 
"Attestation Commission"), which Commission may in clude  representatives from Chief Departments  WT/ACC/UKR/114 
 Page 63 
 
 
 for Agriculture and Food, State Technical Supervis ion Inspectorates of Oblast State Administrations, 
oblast Sugar Industry Associations, the State Sanitary  and Epidemiological Service and, if necessary, 
other specialists, advisors and experts (per their consent), depending on the territorial location of 
sugar refining plants. 
Ukraine believes that these measur es are aimed, in the first place, at improving sugar production 
technologies and sugar beet processing in Ukraine, a nd they cannot be regarded as restrictions on the 
importation of raw cane sugar (for the production of  specific quantities of refined sugar) and on the 
exportation of refined sugar. 
Question 96 
And a statement that this Member expected the elimination of such mandatory minimum prices 
and the system for maintaining them upon ac cession, given their inconsistency with GATT 
Article III:4. 
Answer:   
The application of minimum prices for support of agricultural products is in compliance with the 
provisions of Article 6 of the Agreement on Agricu lture and, therefore, Ukraine does not understand 
this Member's expectation regarding the elimina tion of minimum prices for refined sugar and the 
system for their support.  
Question 97 
Paragraph 105:  We cannot support Ukraine' s claim that 1994-1996 represents the future 
conditions of the functioning of the agriculture sector in Ukraine given the significant improvement in the macroeconomic position in the early 2000s, significant structural reform 
and change since 1994-1996 and exchange rate st ability.  We also note Ukraine has provided 
initial information on agricultural domest ic support programs for 2000-2002 in WT/ACC/4 
format.  We request use of the 2000-2002 peri od as this would be consistent with WTO 
requirements and WTO accession guidelines. 
Answer:
  
In selecting a period as the base period Ukraine was guided by guidelines set out in the technical note 
of the Secretariat in the document WT/ACC/4, which note indicates that information on support programs is normally provided for each of the last  three years.  Having commenced negotiations on 
agriculture within the framework of the Working Party dealing with Ukraine's accession to the WTO 
in 1997, and since four years had passed after the co untry filed an application for its accession to the 
WTO, the years 1994 - 1996 were specifically the l ast years and were thus the basis on which the 
information on the level of agricultural support was prepared.  
As regards comments whether it was appropriate to  use the 2000-2002 period as a base period, as this 
would be consistent with WTO requirements a nd WTO guidelines, and comments on updating the 
period in the event that the WTO accession process is  extended for several years, it should be noted 
that the Uruguay Round negotiations had lasted from August 1986 and ended in April 1994, but the 
period adopted for commitments to reduce agri cultural support for countries that signed the 
Marrakech Agreement – the 1986-1988 period – was not  revised, although the negotiations had lasted 
for eight years.  In addition, the WTO Agreemen t on Agriculture does not contain clear guidelines as 
to which time period should be adopted as a "base" period. WT/ACC/UKR/114 
Page 64  
 
 Appropriate state support is needed for purposes of stabilization and further development of Ukraine's 
agrarian sector.  This need results from objective pa rticularities in the functioning of agriculture that 
are common both for Ukraine and developed countries,  from deficiencies of domestic agriculture in 
comparison with that of the developed countries in  terms of technological le vels of production, and 
rationalization of the use of natural resources, as we ll as from a need to resolve problems specific for 
the Ukrainian agrarian sector that have accumulated over the years of crisis-ridden development.  Last 
years' experience shows that the agrarian sector is not able to resolve these problems without an 
increase of State support. 
It is important for Ukraine to obtain a right to provide "amber" support above the de minimis level, 
especially for certain products, which, in turn, will ensure the achievement of strategic domestic goals 
in the agrarian sector and the economy in general.  Thus, the State's funding of loan-rate procurements 
of grain (pursuant to the Law of Ukraine "On Stim ulation of Agricultural De velopment for the Years 
2001-2004", dated 18 January 2001, under No. 2238-III, whereby su pport for and of producers' 
revenues through the introduction of loan rates for agricultural products was entrenched), will exceed 
5 per cent of grain production costs (i.e., the de minim іs level of support), and will be equal 
approximately to 10-12 per cent of the grain production costs for certain grain crops.   
As regards "hyper-inflation", which took place in 1993 and 1994, Ukraine used an annual average 
exchange rate of Ukrainian currency against the US dollar in order to calculate the AMS level for the 
base period of 1994 -1996.  This annual average exchange rate was correlative with the average 
exchange rate that existed during the period when payments for products procured by the State were 
due, and State payments under other support measur es were equal during the year.  Therefore, 
applying the annual average exchange rate of th e Ukrainian currency against the US dollar for 
measuring the AMS level during the base years is ac ceptable.  The annual average exchange rate of 
the Ukrainian Karbovanets (1994-1995)  and the Ukrainian hryvnia (1996) against the US dollar set by 
the National Bank of Ukraine (annual average) w as used for the calculati ons.  This methodical 
approach is compatible with the procedures specifi ed in the Agreement on Agriculture and with WTO 
practices.   
Growth in gross production of agricultural products in  all categories of farms in 2001 and 2002 is, in 
the first place, the result of favourable weather conditions, due to which the gross yield of grain 
increased in 2001-2002.  However, a significant decrease in the yield of grain crops took place in 2003, especially of bread wheat.  Secondly, the priv ileged taxation regime for agricultural enterprises 
(introduction of the fixed agricultural tax) and write -off of tax debts for reformed enterprises in the 
sector in 2000-2002 encouraged, to a certain exte nt, a flow of investments into agricultural 
production, which also promoted an increase of gr oss production of agricultural products.  However, 
positive achievements in increasing production, in partic ular of grain and products of animal origin, 
did not, unfortunately, bring about the expected fina ncial results.  Thus, production of grain, bovine 
meat, milk and eggs suffered a material fall in the level of profitability as a result of a drop of sale prices for agricultural products sold by agricultural enterprises.  In 2 002, 54.0 per cent of enterprises 
posted losses in their activities (in 2001 – 43.9 per cen t).  Net results of all agricultural enterprises' 
activities totalled UAH 294.6 million in losses for 2002 (in 2001 – UAH 834.1 million in profits), and the level of profitability in general totalled minus 1.9 per cent as compared with 5.0 per cent in 2001. 
As regards land reform, a large number of efforts to  reform land relations we re accomplished in 2001, 
as a result whereof changes in these relations beca me irreversible.  However, the final goal – 
economically efficient and environmentally safe use of lands in Ukraine, has not been achieved.  
Positive achievements in the accomplishment of la nd reform have not yet led to the radical and 
efficient renewal of agricultural production, reinvigoration of investment processes in other 
production industries as well as the raising of public welfare.  There is thus a need for a comprehensive approach towards resolving a problem  of land reform on a market basis, in close  WT/ACC/UKR/114 
 Page 65 
 
 
 junction with economic reforms implemented in the country in general and changes in policies of 
agriculture support. 
Question 98 
Quantitative restrictions on the internal purcha se and sale of agricultural products:  Ukraine 
should enumerate the agricultural products that are subject to internal quantitative restrictions 
on purchase and sale, provide details of those re strictions, and explain why those products are 
subject to those restrictions. Details should be  included in the Report, including how do those 
restrictions affect the internal purchase and sale of imported products?  How do they affect the 
export of domestically produced products? 
Answer:  
No internal quantitative restrictions  exist in Ukraine on the purchase and sale of agricultural products.  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 99 Paragraph 118: Have any reservations been made with regard to the listed Conventions? 
Paragraph 125: It appears that there are proble ms with regard to efficient border control on 
the border with Russia, the border checkpoints being easily circumventable, even for heavy 
trucks. Please inform the Working Party of any measures taken or planned to address this problem. 
Paragraph 128: Ukraine's reservation concerning Article 18(3) of the Berne Convention will 
have to be withdrawn upon accession. 
Paragraph 129: The new Law on Advertising (Artic le 6) foresees that all advertising (including 
the use of trademarks) must be in Ukrainia n. How will this be applied in practice? 
Paragraph 135: How is Ukraine planning to im plement Art. 39(3) TRIPS? What period is 
foreseen for data exclusivity? 
With reference to paragraph 141, we reserve our ri ght to ask for additional  detailed language at 
a later stage of the drafting process. 
Answer:
  
Draft Report of the Working Party on Ukraine's Ac cession to WTO to be prepared and circulated in 
the near future will address all of the above-mentioned issues. 
POLICIES AFFECTING TRADE IN SERVICES 
Question 100 Paragraph 143 – Professional services  
Ukraine applies the following restriction in legal services: only Ukrainian nationals may 
represent clients in criminal cases. WT/ACC/UKR/114 
Page 66  
 
 Ukraine's commitment distinguishes between crimi nal and other fields of law. Could Ukraine 
please explain whether there are different qualif ications for criminal lawyers and for other 
lawyers?  
We reserve our right to come back to other para graphs in the services section of the document 
at a later stage. 
Answer:
  
Limitations on market access, which are established in the sector of legal advisory and representation 
services concerning criminal law ( СРС 86111), require further work thereon, because not only 
advocate [attorneys] have the right to supply the i ndicated services, as has been repeatedly notified. 
Thus, pursuant to Decision No. 13- рп/2000 of the Constitutional Court of Ukraine, dated 
16 November 2000, it was recognized that the provisi ons of Part 1 in Article 44 of the Code of 
Criminal Procedure of Ukraine and Part 1 in Article  268 of the Code on Administrative Violations did 
not comply with the Constitution of Ukraine, as such  provisions limited the right of a person, who is 
criminally prosecuted or subjected to administrative sanctions, to freely choose a specialist (other than 
an advocat [attorney]) in the area of law, who is authorized by law to provide legal assistance 
personally or according to a power of attorney from a legal entity, to protect such person's rights. 
Thus, the limitation, whereby the rights of pe rsons criminally prosecuted or subjected to 
administrative sanctions could be protected only by  an advocate [attorney], i.e. by a citizen of 
Ukraine, has been removed. 
The Law of Ukraine "On Amendments to the Code  of Criminal Procedure of Ukraine", dated 
21 June 2001, under No. 2533- ІІІ, introduced amendments to Article  44 of the above reference Code, 
and Part 2 in this Article, as restated, provided that  persons, who are authorized to engage in advocate 
[attorney] practice in Ukraine, and other specialists in the area of law, who are authorized by law to 
provide legal assistance personally or according to  a power of attorney from a legal entity, are 
permitted to act as legal representatives.  When and as provided by this Code, close relatives of an 
accused person, a defendant, a convicted person or an  acquitted person, and his guardians or curators 
are permitted to act as legal representatives. 
Relevant changes will be made to the Schedule of  Specific Commitments in the Services Sector – 
under modes of supply 1) and 3) the co mmitment will be included as "None". 
- Trade Agreements 
Question 101 We request that information in this section clea rly indicate each of the arrangements for goods 
trade on a non-MFN basis, and include, for each such arrangement, details of the nature of the 
departure from MFN including: 
− the coverage of products subject to pref erential access (imported into and exported 
from Ukraine); and 
− the precise nature of the preferential a ccess provided for imports and exports (full 
or partial elimination of customs duties;  full or partial elimination of quantitative 
restrictions; whether the full or partial elimination of customs duties or quantitative 
restrictions is unconditional or conditiona l, and if conditional the nature of the 
conditionality;  details of any special arra ngements or procedures for the import or 
export of particular products, including, e.g., tariff quotas, pricing policies).    WT/ACC/UKR/114 
 Page 67 
 
 
 We understand that, under applicable free-trad e area agreements, trade in wheat between 
Ukraine and other CIS countries is not subject to duties or quantitative restrictions of any kind.  Is this correct?  Is the unrestricted trade in wheat unconditional? 
We seek the inclusion in this section of the repo rt clarification by Ukraine of the arrangements 
under which it purchased and was sold whea t from Russia and Kazakhstan during the second 
half of 2003.  In particular, we would like to  know whether such purchases/sales were normal 
commercial transactions between non-official buy ers and sellers.  We seek details of any official 
or political intervention involved in these purch ases, and of the nature of and basis for such 
intervention.  Under the circumstances in which they had taken place, could have such purchases by Ukraine or sales by Russia or Kaza khstan taken place in the amounts and on the 
terms that applied without official or political intervention?  If not, why not? 
Answer:
  
Trade (trade and economic) agreements between th e Government of Ukraine and Governments of 
other countries, which have approved the most favour ed nation status and, accordingly, extend, on a 
reciprocal basis, MFN rates of import duty for goods originating from these countries, do not provide 
for exceptions of individual goods from this status, that is the MFN extends to the whole range of 
goods. Products from countries that have not signed trade agreements with Ukraine do not enjoy MFN 
rates, but pay duties at a higher rate. 
Ukraine has effective bilateral free trade agreements with CI S countries (Azerbaijan, Belarus, 
Armenia, Georgia, Kazakhstan, Kyrgyzstan, Mol dova, Tajikistan, Turkmenistan and Uzbekistan), 
Baltic states (Latvia, Lithuania and Estonia. The Ba ltic States have formally notified Ukraine of their 
intention to revoke their free trade agreements w ith Ukraine on 1 May 2004) and the Republic of 
Macedonia. These agreements provide that goods orig inating from these countries, on a reciprocal 
basis, are unconditionally subject to import duty at zero rate, and that export restrictions will not be 
imposed.  Both parties to the ag reements may agree to exceptions from the free trade regime. Then 
such goods are subject to the MFN rate or export restrictions. 
In general, export of goods from Ukraine is rest riction-free, except for individual goods which are 
subject to export duty or export of which is prohi bited (for example, ferrous alloy metal scrap, non-
ferrous metal scrap, products of in itial metal processing – ingots, pig metal, plates and other semi-
finished products from non-refined (raw) copper, me tal scrap originating from military formations: 
(Law of Ukraine "On Metal scrap" of 5 May 1999).  Contractual parties of free trade agreements have ag reed not to use quantitative restrictions except the 
cases stipulated by the GATT.  
Detail regarding exemptions from this general rule may be found below. 
A number of free trade agreements (with Belaru s, Kazakhstan, Latvia, Lithuania, Macedonia, 
Moldova, Russia and Uzbekistan) contain lists of goods exempted from the free trade regime, or 
establish a separate import procedure. Agreemen ts with other countries (Azerbaijan, Armenia, 
Georgia, Estonia, Kyrgyzstan, Tajikistan and Tu rkmenistan) do not contain such exceptions. The 
exceptions are listed below. 
- The Republic of Belarus
 
In accordance with Article 1 of the Free Trad e Agreement between Ukraine's Government and 
Belarus' Government of 17 December 1992, "the Par ties shall not apply duties, taxes or fees having 
the equivalent effect on export and/ or import of goods originating from th e territory of one of the state 
and bound to the other state's customs territory". WT/ACC/UKR/114 
Page 68  
 
 Exceptions from the free trade regime are as follows: 
In accordance with Article 1 of Free trade regime  exceptions Protocol between the Government of 
Ukraine and the Government of the Republic of  Belarus (effective since 28 April 1999), the 
Contracting States have exempted from the free tr ade regime the goods to which Ukraine's Law "On 
export duty for live animals and raw leather materi als" of 7 May 1996 No.180/96-BP (VR) applies.  
Range of goods, which are exempted from free trad e regime governing exports when exported from 
Ukraine to Belarus: 
Code in the Classification of 
goods for foreign economic 
activities Description 
01.02.90100   young bovine animals  
01.02.90310   heifers  
01.02.90330   cows   
01.02.90350   bulls   
01.02.90370   oxen   
01.02.90900   and other  
01.04.10   live sheep   
41.01   hide of bovine animals  
41.02   hide of sheep or lambs  
41.03.90000   only hide of swine 
 
Cabinet of Ministers of Ukraine's Resolution No.1304 of 10 October 2001 "On temporary exception 
of sugar from free trade regime with the Republic of  Belarus" as amended by Cabinet of Ministers of 
Ukraine's Resolution No. 1081 of 26 July 2002, ha s temporarily removed sugar (according to the 
Ukrainian Classification of Goods for Foreign Ec onomic Activities, codes 1701 and 1702) from the 
free trade regime with the Republic of Belarus until Ukraine and Belarus take a joint decision. 
- The Republic of Kazakhstan  
In accordance with Article 1 of 17 September 1994 Agreement between the Government of Ukraine 
and the Government of the Republic of Kazakhstan on  free trade, "the Parti es shall not apply duty, 
taxes or fees having the equivalent effect on e xport and/or import of goods originating from the 
territory of one of the Parties and bound to the ot her Party's customs territory.  Exceptions from this 
trade regime concerning an agreed range of goods ma y be stated in a separate Protocol, provided the 
Parties find it necessary". 
Exceptions from the free trade regime: The Free trade regime exceptions Protocol to 17 September 1994 Ag reement between the 
Government of Ukraine and the Government of th e Republic of Kazakhstan on free trade contains the 
following list of goods which when exported from Ukra ine to the Republic of Kazakhstan, are subject 
to exceptions from the free trade regime. 
Range of goods, which are exempted from free trad e regime governing exports when exported from 
Ukraine to the Republic of Kazakhstan: 
Description Code in the Classification of goods for foreign 
economic activities 
Live bovine animals:  (young bovine animals)  01.02.90100  
Heifers, cows, bulls, oxen and other  01.02.90310 - 01.02.90900    WT/ACC/UKR/114 
 Page 69 
 
 
 Live sheep    01.04.10   
Hide (skins):      
 
List of goods subject to exception by Kazakhsta n from the free trade regime when imported from 
Ukraine: 
Description Code in 1993 Classification of goods for foreign 
economic activities 
Alcoholic and non-alcoholic beverages group 22. (except for 22.01, 22.02 and 22.09)  
Tobacco and manufactured tob acco substitutes  group 24.  
 
- The Republic of Moldova  
In accordance with Article 2 of 29 August 1995 Ag reement between the Government of Ukraine and 
the Government of the Republic of Moldova on free trade, "the Contracting States shall not apply 
duties, taxes or fees having the equivalent eff ect on export and/or import of goods originating from 
the territory of one of the Contracting States and bound to the other Contracting State's customs territory". 
Exceptions from the free trade regime: Cabinet of Ministers of Ukraine's Resolution No . 344 of 14 March 2002 "On temporary exception of 
sugar from free trade regime with the Republic of Moldova" as amended by Cabinet of Ministers of 
Ukraine's Resolution No. 1081 of 26 July 2002, has temporarily exempted sugar (according to the 
Ukrainian Classification of Goods for Foreign Ec onomic Activities, codes 1701 and 1702) from the 
free trade regime with the Republic of Moldova unt il Ukraine and Moldova take a joint decision. 
- The Russian Federation
 
In accordance with Article 1 of 24 June 1993 Agreem ent between the Government of Ukraine and the 
Government of the Russian Federation on free trade,  "the Contracting States shall not apply duty, 
taxes or fees having the equivalent effect on e xport and/or import of goods originating from the 
territory of one of the Contracting States and bound to the other Contracting State's customs territory". 
Exceptions from the free trade regime: In accordance with Article 1 of the Protocol to 24  June 1993 Agreement between the Government of 
Ukraine and the Government of the Russian Fede ration on free trade, exceptions under Article 1 of 
the Agreement extend to goods which are subject to the Ukrainian legislation on export tariff, and to 
goods export licensing and legislation on import and export quotas effective on the moment of the 
customs clearance of goods being exported from Ukraine to the Russian Federation. As of today these 
goods are listed in Cabinet of Ministers' Resolu tion No. 1996 of 24 December 2003 "On the List of 
goods whose export and import are subject to licensing and quotas in 2004". Beside these goods, 
exceptions apply to the following: 
The list of goods which are imported from Ukraine in to the Russian Federation's customs territory and 
to which exceptions from the free trade regime apply: 
Code in CIS 
Classification of goods 
for foreign economic 
activities Description 
1701 99 100 0  White sugar  WT/ACC/UKR/114 
Page 70  
 
 2207 10 0000  Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or 
higher; 
2207 20 0000  Ethyl alcohol and denatured spirituous beverages of any strength  
 Undenatured ethyl alcohol of alcoholic strength by volume of 80% vol or higher 
in containers holding 
2208 90 910  - 2 litres or less  
2208 90 990  - over 2 litres  
2402  Cigars, cheroots, cigarillos and ciga rs, of tobacco or of tobacco substitutes 
 
Range of goods to which, when imported from th e Russian Federation to Ukraine, the free trade 
regime does not apply: 
Code in CIS 
Classification of goods 
for foreign economic 
activities Description 
1701 991000  White sugar  
   Sugar confectionery (including white chocolate), not containing cocoa 
1704 903000  - white chocolate;  
1704 907100  - Boiled sweets, whether or not filled;  
1704 907500  - toffee, car amels and analogous sweets  
1704 908100  - the same in the form of compressed tablets  
   Chocolate and other food products containing cocoa:  
1806 31000  - filled;  
1806 32900  - not filled  
1905 301900  Sweet biscuits, waffles  
2402   Cigars, cheroots, cigarillos and ci gars, of tobacco or of tobacco substitutes 
 
- The Republic of Uzbekistan  
In accordance with Article 1 of 29 December 1994 Agreement between the Government of Ukraine 
and the Government of the Republic of Uzbekistan on free trade, "the Contracting States shall not 
apply quantitative restrictions, or duties, taxes or fees having the e quivalent effect on export and/or 
import of goods originating from the territory of one of the Contracting States and bound to the other Contracting State's customs territory. Exceptions from the mentioned trade regime for an agreed range 
of goods shall be stated in documents whic h are integral parts of this Agreement". 
Exceptions from the free trade regime: Range of goods subject to exceptions by Ukraine from free trade when imported from or exported to 
the Republic of Uzbekistan: 
Description Code in the Classification of goods for foreign 
economic activities 
Grain crops  10.01 – 10.08(except for 10.08 30000) 
Precious and semiprecious stones, precious metals, metals clad with precious metals, their products  25.30 90000 (amber), 71.02 - 71.04, 71.05 
(only from natural diamonds) 71.06, 71.08 - 
71.11, 71.13 - 71.16, 71.18 (only from precious metals), 82.07 (only from natural diamonds), 
82.15, 91.11 10000, 91.13 10100, 97.02, 97.05 
Waste and scrap of precious metals and of metals clad with 
precious metals  71.12 
Ferrous and non-ferrous metal scrap and waste  72.04, 74.04, 75.03, 76.02, 78.02, 79.02, 80.02  WT/ACC/UKR/114 
 Page 71 
 
 
 Description Code in the Classification of goods for foreign 
economic activities 
Granulated slag, slag, dross, scalings and other waste from the manufacture of cast iron or steel, ash and other residues 
containing metals or their compounds 26.18 – 26.20 (except for 26.20 40000), 39.15 
 Medicines, poisons, narcotics and psychotropic substances  13.02, 29.38.29.41,30.06, 38.22 90 
 Chemicals for plant protection  38.08 
 Precious metals, alloys, their articles (products from them), 
ores, concentrates (only from precious metals, scrap and 
waste of precious metals), precious natural stones and their articles, waste, powders and recuperator of precious natural 
stones, pearls and their articles, amber and its articles  26.16, 28.43, 30.06 40 71.06 - 71.15 71.18 
(only from precious metals) 90.03 19100,90.21 
29100, 91.01,91.11 10000, 91.13 10000,96.08 39100, 97.05 (only coins of precious metals) 
25.30 90000 (only amber). 71.01 - 71.03, 71.05 
(only form precious natural stones), 71.16 (only form pearls and precious natural stones). 
96.02 (only worked amber and its articles)  
 Meat and edible offal   02 
Cattle, poultry (except for decorative)  01 
 Flour, meal  10, 11.01 - 11.04 
 Butter  04.05 
 Sugar  17.01, 17.02 
 Raw tea, tea  09.02 
 Defatted milk powder  04.02 10 
Ethyl alcohol  22.07 
Goods exempted by Ukraine from free trade  when exported to the Republic of Uzbekistan:   
Live bovine animals: young bovine animals   01.02.90100  
Heifers, cows, bulls, oxen and other   01.02.90210-01.02.90900  
Live sheep   01.04.10  
Hides and skins:    
of bovine animals   41.01  
of sheep or lambs   41.02  
of pigs only   41.03.90000  
Precious metal ores and concentrates, colloidal precious 
metals, organic and inorganic compounds of precious 
metals   26.16, 28.43  
Precious stones, precious metals, whether or not worked   25.30.90000 (amber), 71.02, 71.03, 71.06, 
71.08, 71.10, 71.18 
Waste and scrap of precious metals and of metals clad with 
precious metals   71.12  
 
Range of goods subject to exceptions by the Repub lic of Uzbekistan from free trade when imported 
from or exported to Ukraine 
Description Code in the Classification of goods for foreign 
economic activities 
Mixed fodder (including schrott)  23.02 - 23.06, 23.08, 23.09, 12.08 
Vegetable oil 15.07 - 15.15, 15.16 20 (except for its fractions) 
Non-ferrous metal ores, concentrates  26.02 - 26.17, 26.20 
Non-ferrous metals, rolled products from non-ferrous metals, scrap and waste of non-ferrous metals  28.05, 74.01 - 74.11, 75.01 - 75.06, 76.01 - 76.13, 
76.15, 78.01 - 78.04, 79.01 - 79.05, 80.01 - 80.05,
  81.01 - 81.12 
Crude oil, gas condensate, petroleum oils, semi-products and waste of oil refining and of petrochemical manufacture, including components  27.09, 27.10, 27.12 10, 27.12 90, 27.13, 27.14,   
29.20 10, 38.23 20, 38.23 90 
Natural gas, solid paraffin  27.11 29, 27.12 20, 27.11 11, 27.11 21, WT/ACC/UKR/114 
Page 72  
 
 Description Code in the Classification of goods for foreign 
economic activities 
Cotton fibres, cotton waste, cotton seeds   52.01 - 52.03, 14.04 20 000, 12.07 20 
Ferrous metal rolled products, scrap and waste of ferrous metals  26.19 00 910,  26.19 00 950, 26.19 00 990, 72.04, 
72.08 - 72.29, 73.01 - 73.06 
Cables and conductors  74.13, 76.14, 85.44, 90.01 10 
Hides, skins, leather  41 (except for non-standard)  
Mineral fertilizers, synthetic ammonia  31.02, 31.03, 31.05, 28.14 
Electrical ener gy  27.16 
Precious and semi-precious stones, their powder and 
dust, precious metals  71.02 - 71.16 
Alcohol, spirits  22.07, 22.08 
Goods exempted from free tr ade by Uzbekistan when 
exported to Ukraine    
1. Non-ferrous metals, non-ferrous rolled products, 
scrap and waste of non-ferrous metals  28.05, 74.01-74.11,  74.13, 75.01-75.06, 76.01-
76.15, 78.01-78.04, 79.01-79.05, 80.01-80.05, 81.03-81.12 
2. Crude oil, gas condensate, petrol, gas-oils (Diesel 
fuel ) 27.09, 27.10.00250, 27.10.00390, 27.10.00510 
27.10.00590 
3. Cotton fibres, cotton linters   52.01, 52.03, 14.04.20000 
4. Precious metals, their alloys, articles, ores, 
concentrates, scrap and waste of precious metals, 
precious natural stones and their articles, waste, powder and recuperator of precious natural stones, 
pearls and their articles, amber and its articles 28.43, 30.06.40 (only from precious metals), 
71.06-71.15, 71.18 (only from precious metals), 
90.03.19.100, 90.21.29.100, 91.01, 91.11.10.000, 91.13.10.000, 96.08.10.300, 96.08.39.100, 97.05 
(only coins of precious metals), 71.16 (only from 
pearls and precious natural stones), 96.02 (only worked amber and its articles)  
Goods exempted from free tr ade by Uzbekistan when 
imported from Ukraine    
5. Medicines, poisons, narcotics, psychotropic 
substances, chemicals for plant protection   29.38,  29.41, 30.03, 30.02, 30.04, 30.06.60, 38.08 
 
- The Republic of Latvia  
Exemption from duties is carried out in accordance with Articles 7 and 8 of 21 November 1995 Free 
Trade Agreement between Ukraine and the Latvia: "Import or export duties or fees having the 
equivalent effect, must not be applied in trade between the Parties". 
Exceptions from the free trade regime: List of agricultural products originating from Uk raine which, when arriving in the Latvia, are 
exempted from free trade between the countries. 
Code, CN. 1998 Description 
0203  Meat of swine, chilled or frozen  
 Meat and edible offal of poultry, stated in heading 0105, fresh, chilled or frozen:  
 - Carcasses of fowls Gallus domesticus:  
020711  - Not cut in pieces, fresh or chilled  
020712  - Not cut in pieces, frozen  
020713  - Cuts and offal, fresh or chilled  
020714  - Cuts and offal, frozen  
0401  Milk and cream, unconcentrated and  without added sugar or other sweetening matter 
0402  Milk and cream, concentrated or cont aining added sugar or other sweetening matter 
0405  Butter and other fats and oils derived from milk; dairy spreads 
0406  Curd and cheese   WT/ACC/UKR/114 
 Page 73 
 
 
 Code, CN. 1998 Description 
   Birds' eggs, in shell, fresh, preserved or boiled:  
   - Of poultry:  
0407 00 300  - Other   
0407 00 900  - Other   
   Potatoes, fresh or chilled 
0701 90  - Other  
   Tomatoes, fresh or chilled:  
0702 00 003  - from 1 June till 30 July  
0702 00 004  -  from 1 July till 30 August  
0702 00 005  -  from 1 September till 31 October  
   Cabbages, cauliflowers, kohlrabi, kale and other edible brassicas, fresh or chilled:  
0704 90  - Other   
0706 10 000  - Carrots and turnips  
   - Cucumbers:  
0707 00 053  - from 1 may till 30 June  
0707 00 054  - from 1 July till 30 September  
   Wheat and meslin:  
1001 90  - Other  
1002 00 000  Rye  
1003 00  Barley  
1004 00 000  Oat  
   - Other grain crops:  
1008 90 900  - Other  
   - Wheat flour:  
1101 00 150  - of common wheat and spelt  
1101 00 900  - Meslin flour  
   Cereal flour other than of wheat and meslin:  
1102 10 000  - Rye flour  
1102 90  - Other   
   - Meals:  
1103 11  - of wheat  
1103 12 000  - of oats  
1103 19  - of other cereals  
   - Pellets:  
1103 21 000  - of wheat  
1103 29  - of other cereals  
   -Rolled or flaked cereals:  
1104 11  - barley  
1104 12  - oats  
   - Other cereals:  
1104 19 100  - of wheat   
1104 19 300  - of rye  
   - Other worked grains (for example, hulled, kibbled):  
1104 21  - of barley  
1104 22  - of oats  
1104 29  - of other cereals  
1104 30  - Germ of cereals, whole, rolled, flaked or ground  
1601 00  Sausages and similar products, of meat, meat offal or blood; food preparations based on 
these products  
1602  Other prepared or preserved meat, meat offal or blood  
1701  Cane or beet sugar and chemically pure sucrose, in solid form:  
1704 90 750  - Toffee, caramels and similar sweets  
   Chocolate and other food preparations containing cocoa:  WT/ACC/UKR/114 
Page 74  
 
 Code, CN. 1998 Description 
   - Other, in bars, plates or slabs:  
1806 31 000  - filled  
1806 32  - not filled  
1806 90  - Other   
1905  Bread and other bakers' wares, whether or not containing cocoa; communion wafers, 
empty cachets of a kind suitable for pharmaceu tical use, waffles, wafers, rice paper and 
similar products   
2203 00  Beer made from malt  
2204 10 110  - Champagne wine  
2204 10 190  - Other  
2207  Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; 
ethyl alcohol and other spirits, denatured, of any strength: 
2208 60  -Vodka  
2208 90  - Other  
 Preparations of a kind used in animal feeding:  
2309 90  - Other   
 
List of agricultural products originating from the Latvia which, when arriving in Ukraine, are 
exempted from free trade between the countries and subject to import duty 
 
TN VED, 1994 
(Classification of 
goods for foreign 
economic 
activities, 1994) Description 
   Meat and edible offal, poultry stat ed in heading 0105, fresh or frozen:  
   - Parts of carc asses, offal of poultry (including liver), fresh or chilled: 
0207 39 130  - - - Halves or quarters  
0207 39 230  - - - Legs or cuts thereof   
   - - - Parts of carcasses, offal of poultry (except for liver), fresh or chilled 
0207 41 110  - - - Halves or quarters  
0207 41 510  - - - Legs or cuts thereof  
0405 00  Butter and other dairy fats  
0901  Coffee, whether or not  roasted or decaffeinated; co ffee husks and skins; coffee 
substitutes containing coffee in any proportion:  
1604  Prepared or preserved fish; black cavi ar and caviar substitutes made from berries  
Crustaceans, molluscs and other aquatic in vertebrates, prepared or preserved 
1605 10 000  - Crabs   
1605 20 000  - Shrimps  
1605 30 000  - Lobsters  
1605 40 000  - Other crustaceans  
   Chocolate and other food preparations containing cocoa:  
   - Other:  
   - Chocolate and chocolate products:  
   - Chocolate filled or not filled:  
1806 90 110  - Containing alcohol  
1806 90 190  - Other  
1806 90 310  - - filled  
1806 90 390  - - not filled  
Ex 2101 10 110  - Instant coffee  
2203 00  Beer made from malt  
2204  Wine of fresh grapes, including fortified wines; grape must other than that of heading ¹ 
2009:  
2205  Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances   WT/ACC/UKR/114 
 Page 75 
 
 
 2206  Other fermented beverages (for example, cider, perry, mead); mixtures of fermented 
beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included  
2207  Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; 
ethyl alcohol and other spirits, denatured, of any strength  
2208  Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.; 
spirits, liqueurs and other spirituous beverages 
2402  Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes  
2403 10 000  - Smoking tobacco, whether or  not containing tobacco substitutes in any 
proportion 
2403 99 100  - Chewing tobacco and snuff  
 
List of goods originating from Ukraine which, when  exported to the Latvian Republic, are subject to 
export duty  
 
Code in the 
Classification of 
goods for foreign 
economic 
activities, 1994 Description 
0102 90  Other live bovine animals  
0104 10  Live sheep  
 
- The Republic of Lithuania  
In accordance with Article 2 of 4 August 1993 Fr ee Trade Agreement between the Government of 
Ukraine and the Government of the Lithuania, "the Contracting States shall not  apply duties, taxes or 
fees having the equivalent effect on export and/ or import of goods originating from the customs 
territory of one of the States and bound to the other State's customs territory". 
Exceptions from the free trade regime: 
Article 1 of Free Trade Exceptions Protocol to 4 August 1993 Free Trade Agreement between the 
Government of Ukraine and the Government of th e Lithuania excepts, from free trade, the range of 
goods as stated below. 
Range of goods to which, when imported from the L ithuania to Ukraine, the free trade regime shall 
not apply 
Code in the Classification of 
goods for foreign economic 
activities Description 
0201 - 02050  Meat of bovine animals, of swine, of sheep, other meat: fresh or frozen  
02071011 - 02072390 
02073911 - 02073925 
02073931 - 02073947 
02073953 - 02073983 02074110 - 02074171 
02074210 - 02074271 
02074311 - 02074381  Poultry meat  
03053011 - 03053019   Fish fillet dry-cured, salted or in brine (exclus. smoked)  
03054930 - 03054990   Fish dry-cured, salted or in brine  
03055930   Fish, cold or hot smoked  
0401 - 04022199 
04022915 - 0404  Milk and dairy products  WT/ACC/UKR/114 
Page 76  
 
 Code in the Classification of 
goods for foreign economic 
activities Description 
0406  
0405   Butter and other dairy fats  
0407 - 0408   Eggs  
0409   Natural honey  
0410   Edible products of animal origin, not elsewhere specified or included  
0701   Potatoes   
07020090   Tomatoes (15 May – 31 October)  
07070019   Cucumbers  (16 May – 31 October)  
08081010, 08081091   Apples  
08094011   Plums  
08101010   Strawberries (1 May  - 31 July)  
100190 - 1008  
except 1005  Cereals (except for maize)  
1101 - 1102   flour   
1107   Malt  
1501 - 1503   Pig fat, fats, stearin  
1601 - 1602   Sausages and similar meat products, preserved meat  
1701   Sugar  
1704   Sugar confectioneries not containing cocoa 
180620 - 180690   Chocolate and similar products containing cocoa  
190510 - 19059020,  
19059040 - 19059090   Pastries not containing cocoa  
2001 - 2104, 2106   Prepared vegetables, fruit, nuts or edible parts of plants  
2201 - 2202   Non-alcoholic beverages  
2203   Beer made from malt  
22041011 - 22042110,  
22042910   Champagne wine, sparkling wine, pressurized wine  
2207 - 2208   Undenatured ethyl alcohol, denatured ethyl alcohol, vodka, liqueur and other 
alcoholic  
2402   Cigars, cigarettes with tobacco or its substitutes  
 
Range of goods to which, when imported from Ukrain e to the Lithuania, the free trade regime shall 
not apply 
Code in the Classification of 
goods for foreign economic 
activities Description 
0201-02050 Meat of bovine animals, of swine, of sheep, other meat: fresh and frozen  
02071011-02072390 
02073911-02073925 
02073931-02073947 02073953-02073983 
02074110-02074171 
02074210-02074271 02074311-02074381 Poultry meat  
03053011-03053019 
03053090-030542 
03054930-03054990 03055930 
03055990-030562 
03055690 Fish, dry-cured, salted, smoked  
0401-04022199 Milk and dairy products   WT/ACC/UKR/114 
 Page 77 
 
 
 Code in the Classification of 
goods for foreign economic 
activities Description 
04022915-0404 
0406, 0408, 0410 
0405 Butter and other dairy products  
0407 Eggs   
0409 Natural honey  
0701, except for 070110 Potatoes except for seed potatoes  
07020090 Tomatoes (15 May – 31 October) 
07070019 Cucumbers  (16 May – 31 October) 
08081010 Apples for pro duction of cider (16 Se ptember – 15 December) 
08081091 Apples  (1 August – 31 December) 
08094011 Plums  (1 July  – 30 September) 
08101010 Strawberries (1 May  – 31 July)  
100190-1004 Cereals  
1101-110210 Flour 
110710 Malt  
1601-1602 Sausages and similar prepared and preserved meat  
160411-160420 Preserved fish  
1701 Sugar   
17041011-17049051 
17049061-17049099 Sugar confectioneries not containing cocoa  
180620-180690 Chocolate and other similar products containing cocoa  
190510-190520 
19059040-19059090 Pastries  
2001-2005, 2007, except for 
200791,20079920, 
20079951, 2009, except for 200911, 200920, 200940, 
200950, 200960, 200980, 
210320, 21033090, 2106 Products from vegetables, fruit, nuts or parts of other plants; various foodstuffs 
2201-2202 Non-alcoholic beverages  
2203 Beer made from malt  
22041011-22042110 
22042910 Champagne wine, sparkling wine, wine  
2207-2208 Undenatured ethyl alcohol, denatured ethyl alcohol, vodka, liqueur and other 
alcoholic beverages  
2402 Cigars, cigarettes with tobacco or its substitutes  
 
Range of goods originating from Ukraine to which, when exported from Ukraine to the Lithuania, the 
free trade regime shall not apply  
Code in the 
Ukrainian 
classification 
of goods for 
foreign 
economic 
activities  
Description Volumes of 
exported goods 
exempted from 
duty (in 
thousands of 
tons per year) 
 4101  Raw hides and skins of bovine animal s (fresh, or salted, dried, limed, 
pickled or otherwise preserved, but not tanned, parchment-dressed or 
further prepared), whether or not dehaired   
2.5  WT/ACC/UKR/114 
Page 78  
 
 Code in the 
Ukrainian 
classification 
of goods for 
foreign 
economic 
activities  
Description Volumes of 
exported goods 
exempted from 
duty (in 
thousands of 
tons per year) 
 4102  Raw skins of sheep or lambs (fresh, or salted, dried, limed, treated with 
ash, nickeled or otherwise preserved, but not tanned, parchment-dressed or further prepared), whether or not with wool on   
410390000  Only skins of swine   
204  Ferrous metal waste and scrap; iron or steel waste in form of ingots for 
re-melting (re-melting ingots)  1.5  
 
- The Republic of Macedonia  
The Agreement between the Republic of Macedonia and Ukraine on free trade applies only to goods, 
which are included in Chapters 25-97 of the Harm onized System for the description and coding of 
goods except for products as follows: 
 
Code Short description 
2905 43  Mannitol  
2905 44  D-glucitol (sorbitol)  
3302 10 29  Other mixtures of odoriferous substances and of mixtures  
3501 10  Casein  
3501 10 10   For manufacture or inferior textile fibres  
3501 10 50  For industrial uses other than the manufacture of foodstuffs or fodder  
3501 90 90  Other   
3501 90  Other  
3501 10 90  Other   
3502  Albumins (including concentrates of two or more whey proteins, containing by weight more 
than 80% whey proteins, calc ulated on the dry matter), albuminates and other albumin 
derivatives 
3505  Dextrins and other modified starches, glues based on starches. 
3809  Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other 
products and preparations  
4501  Natural cork, raw or simply prepared; waste cork; crushed, granulated or ground 
cork 
5201 00  Cotton, not carded or combed  
5301  Flax, raw or processed but not spun; flax tow and waste (including yarn waste and 
garnetted stock) 
5302  True hemp (Cannabis sativa L.), raw or processed but not spun; tow and waste of 
true hemp (including yarn waste and garnetted stock) 
 
As for agricultural products and food industry pro ducts, the free trade regi me between Ukraine and 
the Republic of Macedonia applies only to individu al headings and their import volumes as stated 
below. 
 
Products enjoying preferences (no duty to be paid) when imported from Ukraine to the Republic of 
Macedonia    WT/ACC/UKR/114 
 Page 79 
 
 
 Tariff code/Ukr ainian customs 
tariff Tariff code/Macedonian customs 
tariff Tariff quota 
0201  0201  1,000 tons  
0202  0202   
0203 21  0203 21  300 tons  
0203 22  0203 22   
0203 29  0203 29   
0402  0402  400 tons  
1003 00  1003 00 00 30  5,000 tons  
1005 90 000  1005 90 00 10  20,000 tons 
1512  1512 11 00 00  10,000,000 litres  
1701 12  1701 12 00 00  15,000 tons  
1704  1704  100 tons  
1806  1806  100 tons  
1905 30 000  1905 30 00 00  50 tons  
2007  2007  100 tons 
2201  2201  100,000 litres  
2209  2209  100,000 litres 
 
Products enjoying preferences (no duty to be paid) when imported from the Republic of Macedonia to 
Ukraine 
 
Tariff code/Ukr ainian customs 
tariff Tariff code/Macedonian customs 
tariff Tariff quota 
0204  0204  500 tons  
0709 60  0709 60  5,000 tons 
0712  0712  500 tons  
0813  0813  200 tons 
0904  0904  500 tons 
1211 90  1211 90  500 tons 
1704  1704  500 tons 
1806  1806  500 tons  
1904  1904  500 tons  
1905 30 000  1905 30 00 00  100 tons 
2001  2001  6,000 tons 
2002  2002  4,000 tons  
2005  2005  3,000 tons  
2007  2007  100 tons  
2008  2008  500 tons  
2009  2009  3,000,000 litres  
2103  2103  3,000 tons  
2204  2204  40,000,000 litres  
2208 20  2208 20 00 00  100,000 litres  
2208 90  2208 90  100,000 litres  
2209  2209  100,000 litres  
2401 10  2401 10  10,000 tons  
 
In Ukraine, pricing is carried out on market principles. But there are some groups of goods to which 
indicative prices apply.  For instance, in accordance with Article 2 of Law of Ukraine "On export duty 
rates for seeds of some oil crops", the Cabinet of Ministers of Ukraine should, every month, establish 
indicative prices for seeds of those oil crops, which are stated in this Law, taking account of the sale 
price levels in the world market.  The seeds being exported from Ukraine's customs territory, are sold 
at prices which may not be lower than indicative pri ces set by the Cabinet of Ministers of Ukraine.  WT/ACC/UKR/114 
Page 80  
 
 The Law of Ukraine "On export duty rates for live b ovine animals and raw skin s" establishes that the 
export prices on bovine animals, sheep and raw skin s may not be lower than indicative prices set by 
the Cabinet of Minister of Ukraine.  This appli es fully to all exports including those with which 
Ukraine has Free Trade Agreements. 
Ukraine's representative has inform ed that currently, there are 11 free trade agreements in force 
between Ukraine and CIS countries.  All these agreements apply to grain trade, though with 
exceptions. For example, this comm odity is excepted from free trade w ith the Republic of Uzbekistan. 
However, all the agreements on free trade contain rules saying that in case unfavourable conditions 
take place in the trade in any product or co mmodity, the Parties may except, under a joint 
arrangement, from free trade such product or comm odity, including wheat. Accordingly, the Parties 
agree on such exceptions in Protocols. 
The trade between Ukraine and CIS countries do es not enjoy any other preferential conditions 
(arrangements).  As far as trade in grain in the second half of 2003 is concerned, we state that Ukraine 
did not sign a single formal agreement with Russia or Kazakhstan. There were only oral arrangements that the stated purchases may take place. 
In order to stabilize the grain market, 23 October 2003 Law of Ukraine "On amending some laws of 
Ukraine on issues of taxation in relation with grai n crops" has been adopted".  The Law provides for 
zero rates of import duty for wheat and rye regardless of country of origin.  The Law shall be effective till 1 July 2004. 
Grain imports were caused by low harvests of grain crops in 2003 resulting from difficult weather 
conditions and absence of stabilization stocks of grain able to regulate (balance) the demand and 
supply in the market.  Companies of any ownershi p type imported grain on equal terms.  Please see 
Annex 1 below. 
Question 102 
This section needs to be updated, for example as concerns recent developments on the Common 
Economic Space etc. 
Answer:
  
The declaration on the formation of the Common Economic Space (hereinaft er, the "CES") was made 
by the President of the Republic of Belarus, th e President of the Republic of Kazakhstan, the 
President of the Russian Federation and the Preside nt of Ukraine on 23 February 2003 in Moscow.  
Pursuant to the declaration, the final goal of c ooperation in the area of CES formation is to establish 
an Organization for Regional Integration.  
The Agreement on the Formation of the Common Econom ic Space was signed by the President of the 
Republic of Belarus, the President of the Republic  of Kazakhstan, the President of the Russian 
Federation and the President of Ukraine on the 19 September 2003 in the city of Jalta during the 
Summit of the Heads of the CIS Member States.   Ukraine signed the said Agreement with the 
following reservation: "Ukraine shall participate in the formation and functioning of the Common 
Economic Space within limits that comply with the Constitution of Ukraine". 
The signed Agreement on the Formation of the C ES provides that the obligations assumed by the 
Parties to the Agreement are intended to ensure c onditions for stable and effective development of 
their economies, strengthening of the integration processes, and to promote social and economic 
progress of the peoples of the Member States of the CES.  The Agreement also stipulates a possibility  WT/ACC/UKR/114 
 Page 81 
 
 
 for Member States to move ahead in different format s and with different pace towards integration into 
this Organization for Regional Integration. 
Article 1 of the Agreement provides that development of trade and investments between the Parties, 
which will ensure the stable development of the Part ies' economies, shall be promoted on the basis of 
generally recognized principles and rules of international law, as well as pursuant to the rules and 
principles of the WTO. 
It should be noted in this respect that the Agreem ent on the Formation of the CES and the Concept for 
the Formation of the Common Economic Space, which pursuant to Article 3 of the Agreement is an 
inseparable part thereof, are documents that la y down a general structur e of cooperation and only 
outline the intentions of the Member States, which are involved into the CES formation project, with 
respect to the reform of economic relations. 
In expansion of the signed Agreement, and pursu ant to the Complex of the Main Measures on 
Formation of the Common Economic Space, a regul atory and legal framework for CES formation 
should be prepared and adopted, which will govern the relations between the Member States of the 
CES in certain areas and spheres of economic cooperation. 
The position of Ukraine regarding the formation of the CES between Belarus, Kazakhstan, the 
Russian Federation and Ukraine, which is de fined, among others, in the 17 September 2003 
Declaration of the Supreme Rada of Ukraine, is that  the CES has to be created in forms and within the 
limits that are not inconsistent with Ukraine' s course towards the European and Euro-Atlantic 
integration, and has to promote Ukraine's soonest a ccession to the WTO.  Ukraine has stressed in this 
respect that the main goal of CES formation that corresponds to Ukraine's national interests should be 
the establishment of a free trade zone without ex ceptions and restrictions, and that the executed 
Agreement on the Formation of the CES must comply  with the Constitution, laws and international 
commitments of Ukraine. 
Question 103 
List of legislation:  An up-to-date list of legislation submitted to the Working Party needs to be 
attached to the report.  Can this be included? 
Answer:   
The up-to-date list of legislation and draft legisla tion relating to Ukraine's accession to the WTO has 
been provided to the Secretariat for dissemina tion among the Members of the Working Party.  
 WT/ACC/UKR/114 
Page 82 ANNEX 1 
 
Agreements signed by Ukraine, and establishing the most favoured nation treatment or free trade regime 
 
No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
1 Australia 036-AUS 6 July 1999 Agreement between the 
Government of Ukraine and the 
Government of Australia on trade and economic cooperation   Art. 3. Most favoured nation treatment 
(MFN) with exceptions for border 
trade, free trade zones (FTZ), customs unions (Art. 4). 
2 Austria 040-AUT 1 November  1995 Agreement between 
Ukraine and the Austrian Republic on 
bilateral trade and economic relations  Art. 2. MFN with exceptions for border 
trade, preferential trade, customs union 
and FTZ, and also as part of multilateral agreements with third 
countries. 
3 Azerbaijan 031-AZE  28 July 1995 Agreement between the 
Government of Ukraine and the Government of the  Azerbaijani Republic 
on free trade Exceptions are established by Articles 
3 and 4. 
4 Algeria  012-DZA 1 July 1993 Agreement between the 
Government of Ukraine and the 
Government of the Algerian People's 
Democratic Republic   MFN is established by Art. 7. 
5 Argentina 032-ARG 27 October 1995 Agreement between the 
Government of Ukraine and the 
Government of the Argentine Republic on 
economic cooperation  Exceptions from MFN are set out in 
Art. 3 
6 Belgium 056-BEL 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
7 Belarus 112-BLR  17 Decem ber 1992 Agreement between 
the Government of Ukraine and the 
Government of the Republic of Belarus 
on free trade Exceptions are established by Art.3  
  WT/ACC/UKR/114
 Page 83No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
8. Bulgaria 100-BGR 20 November 1995 Agreement between 
the Government of Ukraine and the Government of the Republic of Bulgaria 
on trade and economic cooperation   MFN in Art. 1.2, exceptions in Art. 1.3 
9   Brazil 076-BRA 25 October 1995 Agreement between the 
Government of Ukraine and the Government of the Federal Republic of 
Brazil on trade and economic cooperation   MFN is to be given to one another 
upon Ukraine's accession to the WTO (Art. 2) with exceptions (Art. 3) 
10 Vietnam 704-VNM 23 January 1992 Agreement between the 
Government of Ukraine and the Government of the Socialist Republic of 
Vietnam on trade and economic relations  Art. 5. Unconditional  MFN with 
exceptions for bo rder trade and 
integrationist formations  
11 Great Britain 826-GBR 14 June 1994 Agreement between 
Ukraine and the European Community and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs unions, FTZ in Art. 10.2 
12 Armenia 051-ARM  7 October 1994 Agreement between the 
Government of Ukraine and the 
Government of the Republic of Armenia 
on free trade The Parties may unilaterally establish 
quantity restrictions or other special 
restrictions but these restrictions may 
be applied only in cases provided for by agreements as part of the GATT 
(Art. 3). 
13 Guinea  324-GIN 4 November 1994 Agreement between the 
Government of Ukraine and the Government of the Republic of Guinea on 
trade and economic, science and 
technology, and cultural cooperation  MFN is established by Art. 2. 
14 Honk-Kong 344-HKG 8 August 1992 Agreement between the 
Government of Ukraine and the 
Government of the People's Republic of 
China on trade and economic cooperation  MFN is applied, except for border 
trade, customs unions and free 
economic zones (Art. 2) 
15 Greece 300-GRC 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2  
 WT/ACC/UKR/114 
Page 84 No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
16 Georgia 268-GEO  9 January 1995 Agreement between the 
Government of Ukraine and the Government of the Republic of Georgia 
on free trade The Parties may unilaterally establish 
quantity restrictions or other special restrictions but these restrictions may 
be applied only in cases provided for 
by agreements as part of the GATT (Art. 3). 
17 Denmark 208-DNK 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
18 the Dominican 
Republic 214-DOM 25 September 2002 Agreement between 
the Government of Ukraine and the 
Government of the Dominican Republic on trade and economic cooperation  the Parties give one another MFN (Art. 
2) except for customs union, FTZ and 
border trade 
19 Estonia 233-EST  24 May 1995 Agreement between 
Ukraine and the Estonian Republic on 
free trade Free trade is established by Articles 5, 
6, 7, and general exceptions are 
established by Art. 8. On 1 May 2004 the Agreement becomes ineffective 
because of Estonia's accession to the 
EU. 
20 Egypt 818-EGY 22 Decembe r 1992 Agreement between 
the Government of Ukraine and the 
Government of the Arab Republic of Egypt on trade  Art. 2 – MFN and exceptions from it 
(customs union, FTZ, border trade, 
other bilateral agreements). 
21 Israel 376-ISR 11 July 1995 Agreement between the 
Government of Ukraine and the 
Government of the State of Israel   MFN and exceptions from it in Art. 2 
22 India 356-IND 27 March 1992 Agreement between the 
Government of Ukraine and the 
Government of the Republic of India on 
trade and economic cooperation  MFN is established by Art. 2, and 
exceptions from it – by Art. 3. 
23 Indonesia  360-IDN 11 April 1994 Agreement between the 
Government of Ukraine and the 
Government of the Republic of Indonesia 
on trade  MFN (Art. 2), exceptions from MFN 
(Art. 3) – border trade, customs unions, 
FTZ. 
  
  WT/ACC/UKR/114
 Page 85No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
24  Iraq  368-IRQ 9 October 2000 Agreement between the 
Government of Ukraine and the Government of the Republic of Iraq on 
trade, economic, scie nce and technology 
cooperation  The Parties give one another MFN with 
exceptions (Art. 2) 
25 Iran 364-IRN 6 February 2001 Agreement between the 
Government of Ukraine and the 
Government of the Islamic Republic of 
Iran on trade  MFN and exceptions from it are 
established  by Art.5. 
26 Ireland 372-IRL 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
27 Spain 724-ESP 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
28 Italy 380-ITA 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
29 Jordan 400-JOR 23 April 2002 Agreement between the 
Government of Ukraine and the 
Government of the Kingdom of Jordan on trade and economic cooperation  The Parties apply duties and other fees 
for export and import of goods, not less 
favourable than those established for any other country in accordance with 
WTO principles (Art. 2). 
30 Kazakhstan 398-KAZ  17 Sept ember 1994 Agreement between 
the Government of Ukraine and the Government of the Republic of 
Kazakhstan on free trade Exceptions from free trade regime are 
established by Art. 3. 
31  Canada 124-CAN 31 March 1994 Agreement between the 
Government of Ukraine and the Government of Canada on trade and 
commercial relations  MFN and exceptions within the GATT 
are established by Art. 3.  
 WT/ACC/UKR/114 
Page 86 No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
32 Cyprus 196-CYP 21 February 2000 Trade Agreement 
between the Government of Ukraine and the Government of the  Republic of 
Cyprus   The Parties shall give one another 
MFN (Art. 2), except for border trade, customs union or FTZ  (Art. 3). 
33 Kyrgyzstan  417-KGZ  26 May 1995 Agreement between the 
Government of Ukraine and the Government of the Kyrgyz Republic on 
free trade The  Parties may unilaterally impose 
quantity restrictions and other special restrictions (exceptions of Art. 3). 
34 China 156-CHN 8 August 1992 Agreement between the 
Government of Ukraine and the Government of the People's Republic of 
China on trade and economic cooperation  MFN is applied except for border 
trade, customs unions, free economic zones (Art. 2). 
35 North Korea 408-PRK 15 June 1992 Agreement between the 
Government of Ukraine and the Government of the Korean People 
Democratic Republic on trade and 
economic cooperation  MFN is applied except for border 
trade, customs unions, free economic zones (Art. 2). 
36 South Korea 410-KOR 30 November 1995 Agreement between 
the Government of Ukraine and the 
Government of the Republic of Korea on trade  MFN shall not extend to border trade, 
customs unions or FTZ, or privileges 
given to developing countries (Art.2). 
37 Cuba 192-CUB 20 Decembe r 1991 Agreement between 
Ukraine and the Republic of Cuba on 
trade and cooperation   MFN (Art.2) shall not extend to border 
trade, customs unions or FTZ, or 
privileges to be given to developing countries and former Soviet Union 
countries (Art. 3). 
38  Latvia  428-LVA  21 November 1995 Agreement between 
Ukraine and the Latvian Republic on free trade Cancellation of duties and quantity 
restrictions is established by Articles 7, 8, 9, and general exceptions established 
by Art. 10. On 1 May 2004 the 
Agreement becomes ineffective because of Latvia's accession to the 
EU. 
39 Lebanon 422-LBN 25 March 1995 Agreement between the 
Government of Ukraine and the Government of the Lebanese Republic on 
trade and economic cooperation   MFN (Art. 2) shall not extend to border 
trade, integrationist unions or privileges given to members of the 
League of Arab States (Art. 3).  
  WT/ACC/UKR/114
 Page 87No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
40 Libya 434-LBY 18 January 19995 Agreement between the 
Government of Ukraine and the Great Socialist People's Libyan Arab 
Dzhamakhiria (Republic) on trade and 
economic cooperation  MFN (Art. 3) shall not be applied to 
border trade, customs unions, FTZ or privileges which may be given to 
countries of the Uni on of Arab Magrib 
in future (Art. 4). 
41 Liechtenstein 438-LIE 20 July 1995 Agreement between Ukraine 
and the Swiss Confederation on trade and 
economic cooperation  The Agreement shall extend to the 
Principality of Liechtenstein until the 
customs union agr eement (Art.20) 
between this country and the Swiss Confederation is in force. 
42  Lithuania 440-LTU  20 July 1995 Agreement between the 
Government of the Lithuanian Republic 
and the Government of Ukraine on free trade Exceptions from the free trade regime 
are stated in Art. 4.  On 1 May 2004 the 
agreement becomes ineffective because of Lithuania's accession to the EU. 
43 Luxembourg  442-LUX 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
44 Macedonia 807-MKD 3 June 1997 Agreement between the 
Government of Ukraine and the Government of Macedonia on trade and 
economic cooperation 18 January 2001 Ag reement between 
Ukraine and the Republic of Macedonia on free trade The Contracting States will gradually 
create the free trade zone for the transition period which is not to exceed 
10 years starting on the moment that 
this Agreement comes into force, in accordance with th is Agreement's 
regulations and with definitions set out 
in Article XXIV of the GATT of 1994 
45 Morocco 504-MAR 24 Decembe r 2001 Agreement between 
the Government of Ukraine and the 
Government of the Kingdom of Morocco 
on trade  The Parties must give one another the 
most favoured nation treatment as to 
customs duties, taxes and other 
assessments (Art. 1). However, MFN shall not be applied as far as border 
trade, customs union or free trade zone, 
bilateral or multilateral agreements are concerned. (Art. 2).  
 WT/ACC/UKR/114 
Page 88 No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
46 Moldova 498-MDA  29 August 1995 Agreement between the 
Government of Ukraine and the Government of the Republic of Moldova 
on free trade The Most favoured nation treatment is 
provided by Art. 1. Possible prohibitions or restrictions must be of 
non-discriminatory nature, strictly 
substantiated and within necessary measures as to both volumes and time 
periods (Art. 4). 
47 Mongolia 496-MNG 19 May 1992 Agreement between the 
Government of Ukraine and the Government of Mongolia  According to Art. 2, the Contracting 
States give one another MFN. Exceptions are border trade, customs 
unions, free trade zones (Art. 3).  
48 the Netherlands 528-NDL 14 June 1994 Agreement between 
Ukraine and the European Community and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs unions, FTZ in Art. 10.2 
49 Germany 276-DEU 14 June 1994 Agreement between 
Ukraine and the European Community and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs unions, FTZ in Art. 10.2 
50 Norway 578-NOR 27 January 1998 Agreement between the 
Government of Ukraine and the 
Government of the Kingdom of Norway 
on trade relations and economic cooperation  The Parties give MFN in trade and 
economic cooperation on a mutual 
basis, in accordance with Art. 1, 
paragraph 1, GATT of 1994. 
51 the United Arab 
Emirates  784-ARE 22 January 2003 Agreement between the 
Government of Ukraine and the 
Government of the United Arab Emirates on economic, trade and technology 
cooperation  MFN is established. 
52 the Republic of 
South Africa 710-ZAF 23 November 1998 Agreement between 
the Government of Ukraine and the Government of the Republic of South 
Africa on trade  Each Party shall guarantee the other the 
MFN in accordance with principles contained in the WTO Agreement (Art. 
2). Exceptions are governed by Art. 3. 
53 Poland 616-POL 4 October 1991 Agreement between the 
Government of Ukraine and the Government of the Republic of Poland  The Contracting States shall give one 
another MFN. It shall not extend to border trade or integrationist groupings 
(Art. 3).  
  WT/ACC/UKR/114
 Page 89No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
54 Portugal 620-PRT 14 June 1994 Agreement between 
Ukraine and the European Community and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs unions, FTZ in Art. 10.2 
55 Russia 643-RUS  24 June 1993 Agreement between the 
Government of Ukraine and the Government of the Russian Federation on 
free trade General exceptions are set out in Art. 
3. 
56 Romania 642-ROM 28 July 1992 Agreement between the 
Government of Ukraine and the Government of Romania on trade and 
economic, science and technology 
cooperation  MFN shall not extend to border trade, 
customs unions or free economic zones (Art. 3). 
57 Syria  760-SYR 22 April 2002 Agreement between the 
Government of Ukraine and the 
Government of the Syrian Arab Republic 
on trade, economic and technology cooperation  The Parties give one another MFN 
(Art. 3), except for border trade, 
customs union, free trade zones, 
agreements with developing countries, or privileges which have been or may 
be given by the Syrian Arab Republic 
to any of Arab states in future (Art. 2). 
58 Slovakia 703-SVK 25 May 1992 Amendments to the 
Agreement between the Government of 
the Ukrainian Soviet Socialist Republic and the Government of the Czech and 
Slovak Federal Republic on trade and 
economic relations, science and technology cooperation of 30 July 1991  The Contracting States agree to give 
one another unconditional MFN in all 
the issues related to trade in goods (Art. 1). MFN shall not extend to 
border trade, customs unions or free 
trade zones (Art. 2). 
59 Slovenia 705-SVN 28 August 1996 Agreement between the 
Government of Ukraine and the 
Government of the Republic of Slovenia on trade and economic cooperation  The Contracting Parties shall give one 
another MFN as to goods and services 
with exceptions (Art. 2). 
60 the USA 840-USA 6 May 1992  Agreement between Ukraine 
and the United States of America on trade 
relations  According to Art. 1, the countries give 
one another unconditional MFN with 
exceptions as to customs unions, FTZ, border trade or privileges to developing 
countries.  
 WT/ACC/UKR/114 
Page 90 No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
61 Tadjikistan  762-TJK  6 July 2001 Agreement between the 
Cabinet of Ministers of Ukraine and the Government of the Republic of 
Tadjikistan on free trade The Parties may establish exceptions 
from the free trade regime for the agreed range of goods/services (Art. 1). 
62 Taiwan (as part 
of China)  158-TWN 8 August 1992 Agreement between the 
Government of Ukraine and the Government of the People's Republic of 
China on trade and economic cooperation  MFN is applied except for border 
trade, customs unions, free economic zones (Art. 2). 
63 Tunisia 788-TUN 7 December 1993 Agreement between the 
Government of Ukraine and the Government of the Tunisian Republic on 
trade and economic cooperation   The Contracting States shall give one 
another the MFN (Art. 2). MFN shall not extend to border trade, customs 
unions or free trade zones (Art. 3). 
64 Turkey 792-TUR 4 May 1992 Agreement between the 
Government of Ukraine and the Government of the Turkish Republic on 
trade and economic cooperation  The Contracting States shall give one 
another the MFN. It shall not extend to border trade, customs unions, free trade 
zones or agreements signed with 
developing countries (Art. 2). 
65 Turkmenistan 795-TKM  5 November 1994 Agreement between the 
Government of Ukraine and the 
Government of Turkmenistan on free trade  The Parties may establish quantity 
restrictions or other restrictions which 
are of exceptional nature and used in cases provided for by the GATT. 
66  Hungary 348-HUN 22 May 1991 Agreement between the 
Government of the Ukrainian Soviet 
Socialist Republic and the Government of the Hungarian Republic on trade and 
economic relations, and science and 
technology cooperation  The Parties shall ensure favourable 
economic and legal conditions for 
economic, including commercial, activities, and shall not apply, in 
mutual economic relations, any 
measures discriminatory toward the other Party (Art. 2).  
67 Uzbekistan 860-UZB  29 D ecember 1994 Agreement between 
the Government of Ukraine and the 
Government of the Republic of Uzbekistan on free trade The Parties give one another the free 
trade regime (Art. 1). The countries 
may establish restrictions provided by agreements as part of the GATT/WTO 
(Art. 3).  
  WT/ACC/UKR/114
 Page 91No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
68 Finland 246-FIN 14 May 1992 Agreement between the 
Government of Ukraine and the Government of the Finnish Republic on 
trade and economic cooperation  The Parties shall give one another the 
MFN. It shall not extend to agreements with developing countries, customs 
unions, free trade zones or border trade 
(Art. 3). 
69 France  250-FRA 14 June 1994 Agreement between 
Ukraine and the European Community 
and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs 
unions, FTZ in Art. 10.2 
70 Croatia 191-HRV 20 May 1991 Agreement between the 
Government of the Ukrainian Soviet 
Socialist Republic and the Government of 
the Republic of Croatia on trade and economic relations, and science and 
technology cooperation  Participants of the activities work in all 
the spheres of trade and economic 
relations in accordance with principles 
which are applied in the world trade and financial practice (Art. 1). 
71 the Czech 
Republic 203-CZE 17 March 1993 Agreement between the 
Government of Ukraine and the Government of the Czech Republic on 
trade and economic relations, and science 
and technology cooperation  The Contracting States shall give one 
another the MFN (Art. 1) which shall not extend to customs unions, free 
trade zones, border trade or 
interregional trade (Art. 2). 
72 Chile 152-CHL 3 May 1999 Agreement between the 
Government of Ukraine and the 
Government of the Republic of Chile on trade and economic cooperation  According to Art. 3, the Parties agree 
to give one another the MFN. 
Exceptions from MFN are established by Art. 4. 
73 Switzerland 756-CHE 20 July 1995 Agreement between Ukraine 
and the Swiss Confederation on trade and 
economic cooperation  The Parties shall give one another the 
MFN with exceptions as to customs 
union or free trade zone, border trade or privileges to developing countries 
(Art. 3 ). 
74 Sweden 752-SWE 14 June 1994 Agreement between 
Ukraine and the European Community and its member states on partnership and 
cooperation  MFN is established by Art. 10.1 with 
exceptions as to border trade, customs unions, FTZ in Art. 10.2  
 WT/ACC/UKR/114 
Page 92 No. Country Country 
classifier Agreement establishing the most favoured 
nation treatment Free trade agreement Notes 
75 Sri-Lanka 144-LKA 10 August 1999 Agreement between the 
Government of Ukraine and the Government of the Democratic Socialist 
Republic of Sri-Lanka on trade and 
economic, and techno logy cooperation  The Contracting Parties give MFN on a 
mutual basis in accord ance with Art. 1, 
paragraph 1 of GATT-94. Exceptions 
apply to free trade zones, customs 
unions, border trade and developing countries' prefer ences (Art. 2). 
76 Yugoslavia 891-YUG 1 August 1995 Agreement between the 
Government of Ukraine and the Union 
Government of the Union Republic of Yugoslavia on trade and economic 
cooperation  In accordance with GATT/WTO the 
Parties shall give one another the MFN 
which shall not extend to border trade, agreements on customs union or free 
trade zone, or agreements with 
developing countries (Art. 2). 
77 Japan 392-JPN 6 December 1957 Trade Agreement 
between the Union of the Soviet Socialist 
Republics and Japan   The Parties give one another the most 
favoured nation treatment (Art. 2). 
 
 
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