G/SCM/N/315/UKR  
 
6 July  2017 
(17-3624) Page: 1/11 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF  
THE GATT 1994 AND AR TICLE 25 OF THE AGRE EMENT ON  
SUBSIDIES AND COUNTE RVAILING MEASURES  
UKRAINE  
The following notification, dated 30 June 2017, is being circulated at the request of the Delega tion 
of Ukraine . 
 
_______________  G/SCM/N/315/UKR  
 
- 2 - 
 
  TABLE OF CONTENTS  
 
Page 
INTRODUCTION  ................................ ................................ ................................ ...............  3 
PART I. HORIZONTAL P ROGRAMMES  ................................ ................................ ................  4 
1. Special Economic Zones and Priority Territories  ................................ ..............................  4 
2. Technological Parks  ................................ ................................ ................................ .... 4 
PART II. SECTO RAL PROGRAMMES  ................................ ................................ ...................  7 
1. Shipbuilding  ................................ ................................ ................................ ..............  7 
2. Aircraft  ................................ ................................ ................................ .....................  8 
 G/SCM/N/315/UKR  
 
- 3 - 
 
  INTRODUCTION  
 This notification was prepared pursuant to Article XVI:1 of the GATT 1994 and Article 25 of 
the Agreement on Subsidies and Countervailing Measures.  
 
This notification relates to subsidies granted in 2015 and 2016, and provides statistical 
information for respective years.  
 
 In prepari ng this notification, Ukraine has taken into account applicable "General Rules " 
listed in G/SCM/6/Rev.1.  G/SCM/N/315/UKR  
 
- 4 - 
 
  PART I. HORIZONTAL P ROGRAMMES  
1. Special Economic Zones and Priority Territories  
In reporting period, the investment projects in SEZ and Priority Territo ries are implemented under 
the regular tax regime.  
During reporting period there were not any changes in respect to policy/objective, background and 
authority, form of the subsidy, to whom and how the subsidy is provided, in comparison with 
information gi ven in G/SCM/N/155/UKR of 26 May 2008, G/SCM/N/186/UKR of 3 July 2009 , 
G/SCM/N/220/UKR of 7 July 2011,  G/SCM/N/253/UKR of 11 July 2013 and G/SCM/N/284/UKR 
of 20 July 2015.  
2. Technological Parks  
Policy objective and/or purpose  
Encourage investment, promotion of research and development of new technologies.  
Background and authority  
The basic legislative acts providing for the establishment and functioning of the technological parks 
are contained in:  
- Law of Ukraine "On Special Regime of Innovation Activity of the Technological Parks " of 
16 July 1999 No . 991-XIV (with changes and amendments);  
- Law of Ukraine "On Changes to the Law of Ukraine "On Special Regime of Innovation 
Activity of the Technological Parks " and other laws of Ukraine " of 12 January 2006 
No. 3333-IV (with changes and amendments);  
- Law of Ukraine "On innovation activity " of 4 July 2002 No . 40-VI (with changes and 
amendments);  
- Law of Ukraine "On priority directions of the science and technology development " 
of 11 July 2001 No . 2623-III (with changes  and amendments);  
- Law of Ukraine "On state target programs " of 18 March 2004 No . 1621-IV (with changes 
and amendments);  
- Law of Ukraine "On priorities of the Innovation Activity in Ukraine " of 8 September 2011 
No. 3715-VI (with changes and amendments);  
- Decree of the Cabinet of Ministers of Ukraine of 17 December 1999 No . 2311 
(with changes and amendments) approving the Procedure of Consideration and Approval 
of the Priority Directions of Activity of the Technological Park, the Procedure of 
Consideration, Exa mination and Registration of Technological Park 's Projects;  
- Decree of the Cabinet of Ministers of Ukraine of 2 February 2011 No . 118 approving the 
procedure of accumulation of corporate income tax amounts on special account of 
technological park, use and c ontrol of such amounts;  
- Decree of the Cabinet of Ministers of Ukraine of 21 March 2007 No . 517 approving the 
procedure of control and monitoring of the technological parks projects implementation;  
- Decree of the Cabinet of Ministers of Ukraine of 29 Novembe r 2006 No . 1657 approving 
procedure for state registration of technological parks and its projects.  G/SCM/N/315/UKR  
 
- 5 - 
 
  The relevant laws with regards to tax and import duty incentives are:  
- Law of Ukraine of 28 December 2014 No . 80-VIII "On State Budget of Ukraine for 2015 " 
(with changes and amendments);  
- Law of Ukraine of 28 February 2016 No . 928-VIIІ "On State Budget of Ukraine for 2016 " 
(with changes and amendments);  
- Law of Ukraine "On Customs Tariff of Ukraine " of 19 September 2013 No . 584-VIІ. 
Form 
 Accumulation of import duty and credit support.  
Explanation of Benefits  
Accumulation of import duty  
Amount of import duties, which accrued during the import of new materials, equipment, 
components used to implement technological parks projects and are not produced in Ukraine, 
transferred to a special account and used solely for the purpose of scientific and technological 
activities, the development of scientific technical and scientific research base of the parks.  
Credit support  
For implementation of technological park 's project s each year the State Budget of Ukraine should 
foresee certain budget for:  
Full or partial (up to 50 per cent) loans with zero interest (with inflation indexation) for park 's 
projects;  
Full or partial compensation of interest paid by park 's project implem entation authority to 
commercial banks and other finance institutions for loans for park 's projects.  
However, in 201 5 and 201 6 there have not been foreseen any funds in the State Budget for loan 
support.  
Beneficiaries  
Beneficiaries of the favorable regime are technological parks, their participants and joint 
enterprises implementing projects in priority areas.  
Technological park – is a legal person or association of legal persons which are implementing 
innovative projects, implication of high technology dev elopments.  
Priority directions for each technology park are developed according to the Law of Ukraine 
"On Priority Directions of Science and Technology Development " of 11 July 2001 No.  2623-III, Law 
of Ukraine "On Priorities of Innovative Activity in Ukrai ne" of 16 January 2003 No.  433-IV, 
considered by the Presidium of the National Academy of Science and approved by the central 
government authority responsible for science issues.  G/SCM/N/315/UKR  
 
- 6 - 
 
  Amount  
 2015, 
million UAH  2016, 
million UAH  
Usage of sums of import duty tha t are accumulated on a 
special accounts of parks and projects  0 0 
Credit support (Full or partial compensation of interest 
paid by park's project implementation authority to 
commercial banks and other finance institutions for loans)  0 0 
Full or partial l oans with zero interest  0 0 
Duration  
The favorable regime for technological parks established for the period of 15 years and is acting 
during the implementation of technology park projects.  
Trade effects  
It is not possible to evaluate trade effects.  G/SCM/N/315/UKR  
 
- 7 - 
 
  PART  II. SECTORAL PROGRAM MES 
The legislative bases for Ukraine 's sectoral programs are found in:   
- Enabling legislation specific to the sector itself (shipbuilding, aircraft) cited below for 
each Sector  
- Law on state budget for respective year, such as:   
- Law of Ukraine of 28 December 2014 No. 80 -VIII "On State Budget of Ukraine for 
2015" (with changes and amendments)  
- Law of Ukraine of 28 February 2016 No. 928 -VIIІ "On State Budget of Ukraine for 
2016" (with changes and amendments)  
- Customs Code of Ukraine (Law of Ukraine of 13.03.2012 No. 4495 -VI) 
- Tax Code of Ukraine (Law of Ukraine of 02.12.2010 № 2755 -VI) 
- Law of Ukraine "On Customs Tariff of Ukraine " of 19 September 2013 No . 584-VIІ. 
The Sector specific enabling legislation is identified under each of the support ed sectors listed 
below.  
 
1. Shipbuilding  
Policy objective and/or purpose  
 
The overall objectives for providing assistance to the shipbuilding industry are to:   
 
- Promote better use of the industry's existing production and Research and 
Development facilities;  and  
- Encourage new investment in the industry to achieve greater efficiency and 
competitiveness.   
 
Background and authority  
 
Law of Ukraine of 06.09.2012 No. 5209 -VI "On conducting an economic experiment on state 
support for the shipbuilding industry "  
Customs Code of Ukraine (Law of Ukraine of 13.03.2012 No. 4495 -VI) 
Tax Code of Ukraine  (Law of Ukraine of 02.12.2010 No.  2755-VI) 
Form 
Exemption from import duties  
In accordance with paragraph 4 (6) of the transitional provisions of the Customs Code of Ukrai ne 
temporarily, until 1 January  2016, from import duty for importation into the customs territory of 
Ukraine and placing into the import customs regime are exempted  equipment and components 
that are not produced in Ukraine and imported to the customs terri tory of Ukraine by domestic 
enterprises of shipbuilding industry for use in their economic activities. The list of these goods with 
indication of tariff codes is approved by the Cabinet of Ministers of Ukraine . 
The Resolution of the Cabinet of Ministers of  Ukraine of May 28, 2012 No. 466 "On approval of the 
list of equipment and components that are not produced in Ukraine and imported to the customs 
territory of Ukraine by domestic enterprises of shipbuilding industry for use in economic activities, 
that ar e temporarily exempt from import duty when imported into the customs territory of Ukraine 
and the placed into the customs regime of import ". 
VAT payment deferral  
Pursuant to section 3 of the Tax Code, the importation by shipbuilding enterprises under the 
customs regime into the customs territory of Ukraine of equipment and components that are not 
produced in Ukraine for use in economic activities, provided that customs declaration is completed, G/SCM/N/315/UKR  
 
- 8 - 
 
  may present on their own customs authority (a customs authority  shall accept) tax bill in the 
amount of tax liability on the value added tax, determined in such a customs declaration. List of 
equipment and components that are imported by domestic enterprises of shipbuilding industries 
and are not produced in Ukraine, is approved by the Cabinet of Ministers of Ukraine . 
Beneficiaries  
The Cabinet of Ministers of Ukraine approves the procedures for the inclusion of shipbuilding 
enterprises in the list of enterprises for which measures of state support could be introduced 
according to the order determined in the Decree of Cabinet of Ministers of Ukraine of 12 July 2005, 
No. 555.  
The list of eligible shipbuilding enterprises appears in the Resolution of the Cabinet of Ministers of 
Ukraine of 21  December 2005, No. 1256 (last changes – by Decree of Cabinet of Ministers of 
Ukraine of 10 June 2009 No. 574).   
Amount  
 2015, thousand UAH  2016, thousand UAH  
Exemption from import duties  0 0 
Deferment of VAT  Not available  Not available  
Duration  
Until 1 January  2016 on exemption fro m import duties.  
Statistics for evaluation of trade effect  
Amount of production*  2015, thousand UAH  2016, thousand UAH  
Seagoing crafts and other floating means  Not available  Not available  
* Total production, including producti on of enterprises -beneficiar ies. 
2. Aircraft  
Policy objective and/or purpose  
The overall objective for providing aid to the aircraft construction industry is to promote an 
efficient use of existing production, research and development facilities and to encourage 
investment to provide fo r modernization of the industry.   
Background and authority  
The Law of Ukraine of 12.07.07 No. 2660 -III "On aircraft industry development " (with changes and 
amendments).  
The Law of Ukraine of 05.06.12 No. 4884 -VI "On amendments to the Law of Ukraine on the 
development of the aircraft industry " concerning state supports for domestic sales of aviation 
equipment production  through the mechanism of credit support.  
The Decree of the Cabinet of Ministries of Ukraine of 21.07.10 No. 680 "On import on the customs 
territory of Ukraine of goods by aircraft enterprises " (with changes and amendments) clarifies 
requirements concerning eligible import volumes and ensuring of it 's proper end use.  
Customs Code of Ukraine (Law of Ukraine of 13.03.2012 No. 4495 -VI) 
Tax Code of  Ukraine  (Law of Ukraine of 02.12.2010 No.  2755-VI) G/SCM/N/315/UKR  
 
- 9 - 
 
  Form 
Exemption from import duty  
In accordance with paragraph 4 of subsection 2 of section XX "Transitional Provisions " of the Tax 
Code of Ukraine (the Law of Ukraine of 02.12.2010 No. 2755 -VI), subparagra ph 2 of paragraph 4 
of Section XXI "Transitional Provisions " of the Customs Code Ukraine (Law of Ukraine Act of 
Ukraine of 13.03.2012 No. 4495 -VI) temporarily until 1 January 2016 are exempted goods, 
imported by aircraft enterprises eligible by the Art. 2 of the Law "On aircraft industry 
development ", by such HS (UKTZED) codes:  
2707 20 90 00, 2707 30 10 00, 2707 99 80 00, 2710 11 21 00, 2710 19 81 00, 2710 19 99 00, 
2712 20 90 00, 2805 30 90 00, 2818 10 90 00, 2827, 2835, 3204 90 00 00, 3207 40 30 00, 3208,  
3209, 3211 00 00, 3214 10 10 10, 3603 00, 3604 90 00 00, 3703 10 00 00, 3703 90 10 00, 3824 
10 00 90, 3824 90 35 00, 3824 90 40 00, 3824 90 50, 3824 90 65 00, 3901, 3909, 3911, 3917, 
3919, 3920, 3921, 4002, 4005, 4006 90 00, 4008, 4009, 4011 30 00 30, 401 6, 4017 00, 7003, 
7007, 7019, 7202, 7205 10 00 00, 7205 29 00 00, 7207, 7208, 7209, 7211, 7212, 7213, 7214, 
7215, 7217, 7218, 7219, 7220, 7221 00 10 00, 7223 00, 7224 90 18 00, 7225, 7226, 7227, 7228, 
7229, 7304, 7311 00 10 00, 7312, 7315, 7318, 7326, 7407 , 7409, 7411, 7413 00, 7419, 7502, 
7504 00 00 00, 7505, 7506, 7507, 7508, 7601, 7603, 7604, 7605, 7606, 7607 11 90 00, 7607 19 
99 00, 7607 20 91 00, 7608, 7609 00 00 00, 7616, 8101, 8102, 8104, 8105, 8108, 8111 00 90 
00, 8112, 8307, 8409 10 00 00, 8411 11 00 00, 8411 12, 8411 21 00 00, 8411 22 20 00, 8411 22 
80 00, 8411 81 00 00, 8411 82, 8411 91 00 00, 8411 99 00 00, 8412 10 00 10, 8412 21 80 10, 
8412 29 89 10, 8412 31 00 91, 8412 39 00 10, 8412 80 80 10, 8412 90 20 10, 8412 90 80 10, 
8413 19 00 00, 8413 2 0 00 00, 8413 30 20 00, 8413 30 80 00, 8413 50 40 00, 8413 50 69 00, 
8413 50 80 00, 8413 60 39 00, 8413 60 69 00, 8413 60 70 00, 8413 60 80 00, 8413 70 21 00, 
8413 70 29 00, 8413 81 00 00, 8413 91 00 90, 8414 10 89 10, 8414 20 80 10, 8414 30 20 10, 
8414 30  81 10, 8414 30 89 10, 8414 51 00 10, 8414 59 20 91, 8414 59 40 10, 8414 59 80 10, 
8414 80 11 10, 8414 80 19 10, 8414 80 22 91, 8414 80 28 10, 8414 80 73 91, 8414 90 00 00, 
8415 81 00 30, 8415 82 00 30, 8415 83 00 10, 8415 90 00 00, 8419 50 00 00, 8419 81 20 10, 
8419 81 80 10, 8419 90 85 00, 8421 19 70 10, 8421 21 00 00, 8421 23 00 30, 8421 29 00 00, 
8421 31 00 00, 8421 39 20 00, 8424, 8425 11 00 00, 8425 19 80 00, 8425 31 00 00, 8425 39 30 
00, 8425 39 90 00, 8425 42 00 00, 8425 49 00 00, 8443 32 10 00, 845 6, 8457, 8458, 8459, 
8460, 8461, 8462, 8463, 8466, 8471 30 00 00, 8471 41 00 00, 8471 49 00 00, 8471 50 00 00, 
8471 60 60 00, 8471 60 70 00, 8471 70, 8473 30, 8479 89 97 90, 8481, 8482, 8483, 8501 20 00 
10, 8501 31 00 10, 8501 32 20 10, 8501 32 80 10, 8501  33 00 10, 8501 34 92 10, 8501 34 98 
10, 8501 40 20 10, 8501 40 80 10, 8501 51 00 10, 8501 52 20 10, 8501 52 30 10, 8501 52 90 
10, 8501 53 81 00, 8501 61 20 10, 8501 61 80 10, 8501 62 00 10, 8501 63 00 10, 8502 11 20 
10, 8502 11 80 10, 8502 12 00 10, 8502 13 20 10, 8502 13 40 10, 8502 13 80 10, 8502 20 20 
10, 8502 20 40 10, 8502 20 60 10, 8502 20 80 10, 8502 39 20 10, 8502 39 80 10, 8502 40 00 
10, 8504 10 20 10, 8504 10 80 10, 8504 31 80 00, 8504 32 20 10, 8504 32 80 10, 8504 33 00 
10, 8504 40 90 00, 8504 5 0 20 10, 8504 50 95 10, 8505, 8506, 8507 10 41 10, 8507 10 49 10, 
8507 10 92 10, 8507 10 98 10, 8507 20 41 10, 8507 20 49 10, 8507 20 92 10, 8507 20 98 10, 
8507 30 89 00, 8507 40 00 00, 8507 80 80 00, 8507 90 90 00, 8511 10 00 10, 8511 20 00 10, 
8511 30 00  10, 8511 40 00 10, 8511 50 00 10, 8511 80 00 10, 8515, 8517 70 11 00, 8517 70 19 
10, 8525 50 00 10, 8525 60 00 00, 8526 10 00 10, 8526 91 20, 8526 91 80, 8526 92 00 10, 8528 
41 00 00, 8528 51 00 00, 8528 59 90 00, 8528 61 00 00, 8529 10 69 10, 8529 10 80 10, 8529 10 
95 10, 8529 90 97 10, 8531 10 95 10, 8531 20 20 10, 8531 20 40 10, 8531 20 95 10, 8531 80 20 
10, 8531 80 95 10, 8532, 8533, 8535, 8536, 8537, 8538 10 00 00, 8538 90 99 00, 8541, 8542, 
8543, 8544, 8545, 8546, 9014 10 00 10, 9014 20 20 10, 9014 2 0 20 90, 9014 20 80 10, 9014 20 
80 90, 9014 90 00 90, 9017 20, 9017 30, 9017 80, 9020 00 00 00, 9023 00, 9024, 9025 11 80 
10, 9025 19 20 10, 9025 19 80 98, 9025 80 20 10, 9025 80 40 10, 9025 90 00 95, 9026 10, 9026 
20, 9026 80, 9026 90 00 00, 9027, 9029 10  00 10, 9029 20 38 10, 9030 10 00 00, 9030 20 10 
00, 9030 20 30 00, 9030 20 91 00, 9030 31 00 00, 9030 32 00 00, 9030 33, 9030 39 00 00, 9030 
40 00 00, 9030 84 00 00, 9030 89 30 00, 9030 90 85 00, 9031 80 34 00, 9031 90 85 00, 9032 
10, 9032 20 00 00, 9032 81 00 00, 9032 89 00 00, 9033 00 00 00.  
The Cabinet of Ministers approves the volume and procedure for import of such goods (Decree of 
the Cabinet of Ministries of 21.07.10 No. 680 (with changes and amendments).  G/SCM/N/315/UKR  
 
- 10 - 
 
  Exemption from VAT  
In accordance with parag raph 4 of subsection 2 of section XX "Transitional Provisions " of the Tax 
Code of Ukraine (the Law of Ukraine of 02.12.2010 No. 2755 -VI) the aircraft enterprises eligible by 
the Art. 2 of the Law "On aircraft industry development " temporarily until 1 Janua ry 2016 are 
exempted from VAT on such operations:  
Importation in the customs territory of Ukraine in the import (reimport) regime of goods (except 
excise goods) that used for aircraft industry needs, if such goods are exempted from import duty 
in accordan ce with subparagraph 2 of paragraph 4 of Section XXI "Transitional Provisions " of the 
Customs Code of Ukraine (the Law of Ukraine Act of Ukraine of 13.03.2012 No. 4495 -VI); 
Supply in the customs territory of Ukraine of results of research and development a ctivities that 
conducted for aircraft industry needs.  
If legal requirements were violated, then to the aircraft enterprises apply provisions of the 
section  II of the Tax Code of Ukraine (the Law of Ukraine of 02.12.2010 No. 2755 -VI). 
Credit support  
From 1  January 2013 till 1 January 2017 is implemented state support of aviation equipment of 
domestic production through the mechanism of partial compensation of the interest paid to 
commercial banks for the provided credits. Every year a certain budget allocat ion should be 
foreseen by the Law of Ukraine "On State Budget " for providing such a support.   
The procedure of use of such allocations from the State Budget is annually determined by the 
Cabinet of Ministers of Ukraine.   
Making payments in foreign currency  
In accordance with the Law of Ukraine of 23.09.94 No. 185/94 -VR "On making payments in foreign 
currency " the final payments for export and import transactions of eligible aircraft enterprises are 
carried out not later than 500 calendar days after the tran sfer of down payments for development, 
production, conversion, repair, modification, technical service of aircrafts and engines.  
Beneficiaries  
Legal entities – residents of Ukraine that carry out activity in aircraft industry and have respective 
licenses and certificates granting the rights for development or production, or repair, or 
conversion, or modification or technical service of aircrafts and aircraft engines, and meet at least 
two of the following criteria:  
Develop aircrafts and aircraft engines, p roduce aircrafts and aircraft engines, repair aircrafts and 
aircraft engines;  
Fulfill state or military order on development of aircrafts and aircraft engines, production of 
aircrafts and aircraft engines, repair of aircrafts and aircraft engines;  
Ensure i mplementation of international obligations of Ukraine by international contracts on 
development of aircrafts and aircraft engines, supply of aircrafts and aircraft engines, production 
of aircrafts and aircraft engines, repair of aircrafts and aircraft engi nes. 
List of eligible aircraft entities approved by the Decrees of the Cabinet of Ministers of 09.06.10 
No. 405 and of 12.02.2014 No.  56. G/SCM/N/315/UKR  
 
- 11 - 
 
  Amount  
 2015, thousand UAH  2016, thousand UAH  
Exemption from import duty  7353,5  0 
Exemption from VAT on import of goods  345233,0  0 
Exemption from VAT on supply of research results 
(valid till 31.12.2015)  13822, 2 0 
Credit support  Not available  Not available  
Duration  
Until 1 January2016 (on credit support – until 1 January 2017).  
Statistics for estimation of trade effects  
Production by industry*  2015, thousand UAH  2016, thousand UAH  
 Not available  Not available  
* Total production, including production of enterprises -beneficiaries . 
 
__________