WT/DS463/1, G/L/1034  
G/TRIMS/D/38, G/TBT/D/45  
 
26 July 2013  
(13-4015)  Page: 1/2  
  Original: English  
 
RUSSIAN FEDERATION – RECYCLING FEE ON MOTOR VEHICLES 
REQUEST FOR CONSULTATIONS BY JAPAN 
 The following communication, dated 24 July 2013, from the delegation of Japan to the 
delegation of the Russian Federation and to the Chairperson of the Dispute Settlement Body, is 
circulated in accordance with Article 4.4 of the DSU.  
_______________ 
  
My authorities have instructed me to request consultations with the Government of the 
Russian Federation ("Russia") pursuant to Articles 1 and Article 4 of the  Understanding on Rules 
and Procedures Governing the Settlement of Disputes  ("DSU"), Article XXII:1 of the  General 
Agreement on Tariffs and Trade 1994  ("GATT 1994"),  Article 8 of the Agreement on Trade-Related 
Investment Measures  ("TRIMs Agreement") and Article 14 of the  Agreement on Technical Barriers 
to Trade  ("TBT Agreement") with respect to the Russia's measures relating to a charge, the so 
called "recycling fee", imposed on motor vehicles.  
Through the measures at issue, Russia impose s a recycling fee on each vehicle imported 
into Russia or produced/manufactured on the te rritory of Russia. Russia exempts from the 
recycling fee the vehicles manufactured or produced by companies that have committed to ensure subsequent safe handling of wastes. However, th is exemption is only available to vehicles 
manufactured by companies which are legal entities registered in Russia and which have 
undertaken to produce their vehicles in Russia according to one of the modes involving certain specific manufacturing operations in the territory of Russia, Belarus or Kazakhstan. Therefore, the 
measures at issue, through these conditions, either taken together or separately, discriminate 
between imported vehicles and the like domestic products. In addition, they favour the purchase of parts/components produced in Russia, Belarus or Kazakhstan over parts/components produced 
and imported from other WTO Members, including Japan.  
Furthermore, the measures at issue have inve stment objectives and investment features 
since they encourage the development of local manufacturing by conditioning the benefit of the exemption from the recycling fee on local produc tion requirements and the nationality of the 
producer. 
Through the measures at issue, Russia also exempts from the recycling fee the vehicles 
imported from Belarus and Kazakhstan under certain conditions. This exemption is only granted to 
vehicles imported from Belarus and Kazakhstan and is not accorded immediately and 
unconditionally to the vehicles imported from other countries, including Japan. 
Moreover, the recycling fee is imposed on the vehicles at rates that differ sharply 
depending on whether the vehicles are "new" or  "produced more than 3 years ago", thereby 
treating imported vehicles less favourably than domestically produced vehicles.  
Russia imposes these measures inter alia  through the legal instruments listed below, as 
well as any amendments, revisions, replacement measures, implementing measures and any other 
related measures: WT/DS463/1 • G/L/1034 • G/TRIMS/D/38 • G/TBT/D/45 
 
- 2 - 
 
  - Federal Law No 128-FZ of 28 July 2012 "on Amendments to the Federal Law ‘On 
Production and Consumption Wastes' and Arti cle 51 of the Budget Code of the Russian 
Federation" as published in the Russian Gazette No. 5845 of 30 July 2012;  
- Government Decree No. 870 of 30 August 2012 "on Recycling Fee for Wheeled Transport 
Vehicles" as published in the Russian Gazette No. 5873 of 31 August 2012; 
- Joint Order of 23 June 2005 of the Ministry of Internal Affairs No. 496, the Ministry of 
Economic Development and Trade No. 134 and th e Ministry of Industry and Energy No. 
192 "On approving Regulation on vehicle registration passports and chassis registration 
passports" as amended, including, by Joint Order of 30 August 2012 of the Ministry of 
Internal Affairs No. 828, the Ministry of Industry and Trade No. 1227 and the Federal 
Customs Service No. 1744 "On amendments to Jo int Order of 23 June 2005 of the Ministry 
of Internal Affairs, the Ministry of Econom ic Development and Trade and the Ministry of 
Industry and Energy N 496/192/134" as pu blished in the Russian Gazette No. 203 of 5 
September 2012;  
- Resolution of the Government of the Russian  Federation No. 520 of 20 June 2013 on, inter 
alia, the approval of the rules for granti ng subsidies from the federal budget to 
organizations and individual entrepreneurs to reimburse expenses related to their handling 
of wastes resulting from the loss of consumer good characteristics of wheeled means of 
transport for which the recycling fee was paid as published in the Collection of Laws of the Russian Federation of 1 July 2013, N 26, p. 3342. 
Russia's measures appear to be inconsistent with Russia's obligations under the covered 
agreements and, in particular: 
- Article I:1 of the GATT 1994; 
- Article II:1(a) and (b) of the GATT 1994; 
- Article III:2 of the GATT 1994; 
- Article III:4 of the GATT 1994; 
- Article 2.1 and 2.2 of the TRIMs Agreement alon e or in conjunction with Item 1(a) of the 
Illustrative List annexed to that Agreement; 
- Article 2.1 and 2.2 of the TBT Agreement. 
Japan reserves the rights to raise additional factual claims and legal matters during the 
course of the consultations. 
Japan looks forward to receiving Russia's reply to this request for consultations and to 
agreeing upon a mutually acceptable date for the consultations. 
 
 
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