RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/126 
8 February 2005 
 (05-0509) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Additional Questions and Replies  
 
 
 The following submission, dated 1 February 2005, is being circulated at the request of the Delegation of Ukraine.   
_______________ 
  WT/ACC/UKR/126 
 Page i 
 
 
 TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
- Pricing Policies ............................................................................................................... ...........1  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................7  
A. IMPORT REGULATION........................................................................................................7  
- Tariff rate quotas, tariff exemptions.......................................................................................7  
- Customs Tariff ................................................................................................................. .........9  
- Application of Internal Taxes on Imports ..............................................................................9  
- VAT............................................................................................................................ ................9  
- Quantitative import restrictions, incl uding prohibitions, quotas and import 
licensing systems .............................................................................................................. .......10  
B. EXPORT REGULATIONS ...................................................................................................15  
–  Export rest rictions ............................................................................................................ ......15  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................32  
- Technical barriers to trade .................................................................................................... 32 
- Drawback of duty............................................................................................................... .....33  
- Agricultural policies.......................................................................................................... ......33  
 
  WT/ACC/UKR/126 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Foreign Exchange and Payments Question 1 We note that Ukraine has accepted the obligations  of Article VIII of the Agreement of the IMF 
which requires it to maintain an exchange system  free of restrictions on payments and transfers 
of current international transactions.  In light of this commitment, we remain concerned with 
the five-business-day restriction imposed on the tr ansfer of foreign currency and the limitations 
this places on trade.  We seek the inclusion in the draft report of details of how this requirement 
will be eliminated. 
Answer:
 
The rules laying down procedures for the use and purc hase of foreign exchange are not restrictions 
per se and are prescribed in order to effectuate c ontrol over the outflow of capital, to accomplish goals 
of monetary and credit policies and macro-economic  equilibrium, and to prevent the laundering of 
dirty money. 
All said rules operate within limits of the require ments as are laid down in Article VIII of the IMF 
Charter. 
- Pricing Policies 
Question 2 We thank Ukraine for the replies provided to Questions 10-31 of WT/ACC/UKR/120 and 
Table 1 of that document.  We appreciate the efforts made to respond.  However, we seek 
further clarification of this policy area. 
The codes given for sugar beets ("01.11.51.100") and sugar ("15.83.12") in Table 1 of 
WT/ACC/UKR/120 are not Harmonized System (HS)  codes or national tariff lines based on the 
HS.  We observe that, in respect to the reply to Question 14, neither Tables 1 nor 2 provide the 
details sought.  We reiterate our request that Ha rmonized System codes or national tariff lines 
based on the Harmonized System be  incorporated into the table. 
Answer:
 
The codes that were cited for sugar beets and sugar (01.11.51.100 and 15.83.12) in Table 1 of 
WT/ACC/UKR/120 have to be replaced with 17.01.12 (for sugar) and w ith 12.12.91 for sugar beets, 
code 22.08.10100 (liqueurs, bitters scented with the alcohol content of 44.2 – 49.2 per cent has to be 
replaced with code 21.03 90 30 00. 
Question 3 
The nature of price measures for sugar beets and sugar require further clarification.  We 
appreciate that the purpose of these measures is to  provide support for beet producers – directly 
in the case of the measure relating to the beets and indirectly in relation to the measure relating 
to sugar processed from domestic beets.  We al so refer to the replies to Questions 27 and 29 of 
WT/ACC/UKR/120.  We seek confirmation that  WT/ACC/UKR/126 
Page 2  
 
 - the price measure affecting sugar beets is a mandatory minimum purchase price 
applicable to processors of sugar under the A and B Quotas.  If not, please clarify. 
Answer:
 
We confirm that the price measure affecting sugar beets is a mandatory minimum purchase price 
applicable to processors of sugar under the A and B Quotas. 
- that one of the price measures affecting ref ined sugar is a mandatory minimum sale 
price applicable to sugar processed from domestic beets under the A and B Quotas.  If not, please clarify. 
Answer:
 
Please specify which exactly pricing measures are meant and what kind of effects does the question 
imply? 
- that sugar refined from imported raw cane sugar is, or may be, subject to the same 
mandatory minimum sale price applying to sugar  processed from domestic beets.  If not, 
please clarify how such refined sugar can be differentiated in the domestic market in 
such a way that minimum sale prices are not applied. 
Answer:  
When the sugar produced from the imported raw suga r is sold at the domestic market it is sold by 
applying the domestic market price.  The volumes  of domestically sold sugar produced from the 
imported raw sugar are insignificant.  Hence, they cannot possibly affect the sugar's domestic prices. 
- that imported refined sugar, when sold or re- sold internally in Ukraine, is or may be 
subject to the same mandatory minimum sale  price applying to sugar processed from 
domestic beets.  If not, please clarify. 
Answer:  
No. The imported refined sugar is sold domestical ly by applying the domestic market prices. The 
volumes of imported refined sugar fail to exceed 3 pe r cent of the volumes of the domestically offered 
sugar produced from the domestically grown sugar b eets. Such volumes cannot possibly influence the 
levels of domestic market prices.  This is the main reason why the minimal prices for sugar produced 
from domestic raw products determine the levels of sugar prices at the domestic market.  
- that an administered price has been applied to refined sugar by means of official 
intervention in the purchases and sales of sugar  processed from domestic beets.  If not, 
please clarify. 
Answer:  
Since 2000, no administrative prices to refined suga r has been established by means of official 
intervention. It is the minimum price of sugar sal e-purchase in the domestic market within A Quota 
(Article 1 of the Law of Ukraine "On the State Regulation of Sugar Production and Sale" No. 758 of 
17 June 1999) that was established through admini strative procedure. See also an answer to 
Question 27 of WT/ACC/UKR/120.  WT/ACC/UKR/126 
 Page 3 
 
 
 Question 4 
We appreciate the entry in Table 1 of WT/ACC /UKR/120 relating to grains (HS headings 10.01, 
10.02, 10.03, 10.04, 10.0 5, 10.08).  We seek 
- a definition of the term "pledged price", and clarification of the nature and purpose of 
this measure. 
Answer:  
In accordance with the Law of Ukraine "On Gr ain and Grain Market in Ukraine" No. 37 of 
4 July 2002, the pledge price of grain is the price guaranteed by the state and compensating for 
sectoral average standard costs and secures a minimum income sufficient for reproduction. 
As concerns the cause of emergence and purpose of use: 
Price fluctuations at the agricultural produce market , in particular in the grain market ensue from 
fluctuations in gross grains harvests that bring about deviations from prices stability in the grain 
market.  The range of fluctuations of prices to agricultural produce, including prices to grain, is 
levelled up with different mechan isms varying from country to country.  The most common 
mechanisms include commodity and crediting operati ons when goods producers borrow loans against 
the collateral of their produce at loan rates secu ring a minimum income sufficient for reproduction. 
In accordance with the above mentioned Law of Uk raine, the pledge price of grain purchases means 
the state-guaranteed purchase of grain from agricultu ral producers for a certain period of time at 
pledge prices while such producers retain, during a period of time as set in the agreement, the right to withdraw this grain to be able to subsequently sell it at higher market prices. 
- an English translation of Resolution of the CMU "On measures executing pledged 
operations with grain of the 2004 year harvest", No. 625 of 12 March 2004. 
Answer:
  
The English translation of Resolution of the CM U "On measures executing pl edged operations with 
grain of the 2004 year harvest", No. 625 of 12 March 2004 is provided to the Secretariat. 
Question 5 
We note, however, price regulations relating to bovine meat, butter, cheese, grain products 
including groats (HS Chapter 11), flour, pasta,  bread, biscuits, other bakery products, 
sunflower seeds, vegetable oils, boiled sausages, c oal, coke, natural gas and metals have not been 
included in Table 1 of WT/ACC/UKR/120.  We seek: 
- inclusion of details of recent price regulation in relation to these products in the Table 
and transcription of this information to th e corresponding table in the Working Party 
report. 
Answer:  
The price regulation measures in respect to coal, natural gas, and metals are listed in Table 1 of 
WT/ACC/UKR/120 document.  The current legisla tion doesn't provide for any price regulation 
measures in respect to sunflower seeds and coke. WT/ACC/UKR/126 
Page 4  
 
 In order to stabilize the situation with food stuff prices the Cabinet of Ministers of Ukraine issued 
Resolution No. 1150 of 24 July 2003, "On Performance Drawbacks of Certain Bodies of Executive Power in Insuring Food Stuff Safety and On Measur es Aimed at Stabilizing the Market of Main Food 
Products".  This Resolution empowered the Council  of Ministers of the Autonomous Republic of 
Crimea, Oblsats' State Administrations, Kyiv and Sevastopol Cities' State Administrations with the 
authority: 
- To temporarily regulate the prices on "grain, flour , bread, rolls and buns, pasta, groats, sugar, 
beef, boiled sausage, milk, cheese, butter, and sunflower oil"; and 
- To regulate boundary trade mark-ups on "grain , flour, bread, rolls and buns, pasta, groats, 
sugar, beef, boiled sausage, milk, ch eese, butter, and sunflower oil". 
In order to stabilize the situation with meat and meat products' prices the Cabinet of Ministers of 
Ukraine in addition issued R esolution No. 1359 of 15 October 2004, "On Introducing Changes in 
Annex to Cabinet of Ministers of Ukraine Resolution No. 1548 of 25 December 1996".  This Resolution broadened the scope of authority provided  to the Council of Ministers of the Autonomous 
Republic of Crimea, Oblsats' State Administ rations, Kyiv and Sevastopol Cities' State 
Administrations in respect to regulation of prices on beef, pork, and poultry meat.  
Question 6 
We appreciate that the prices of sugar under th e B Quota are determined under international 
agreements (reply to Question 12 of WT/ACC/UKR/120).  We understand that there have been other international agreements under which trade is undertaken on preferential terms, and where exports and imports are traded at negotiated prices.  We request: 
- notification of the details of these prices in the table on price regulation. 
- creation of a separate table for internationa l agreements for the export and import of 
individual products (including sugar and ot her products) for the most recent calendar 
year for which data are available in relation to all products traded under them, listing 
the tariff code, product description, th e agreement, the quantities sold and the 
applicable rates of import duty and/or export duty. 
Answer:
 
The material requested is complex and involves concep ts and categories that have not been used so far 
in organizing statistical information, as well as some  information that is not normally in the public 
domain.  Ukraine continues to work on this, and will inform Members on the extent to which it can 
respond to the detail requested. 
Question 7 We appreciate the reply to Question 23 of WT /ACC/UKR/120 concerning "natural monopolies" 
involved in the purchase or sale of products, and seek details of the "natural monopolies" involved in the purchase or sale of products, th e products they purchase or sell, and the price 
regulations that apply to those products. 
Answer:
 
In accordance with Article 5 of the Law of Uk raine "On Natural Monopo lies", natural monopolies 
cover oil and oil products transportation through pi pelines, natural and oil gas transportation through 
pipelines and its distribution; transportation of ot her substances through pipeline transport means, 
electric power transmission and distribution, use of railroad tracks, traffic control services, railroad  WT/ACC/UKR/126 
 Page 5 
 
 
 terminals and other infrastructure facilities ensuring  the common use railroad transport, air traffic 
control, centralized water supply and sanitation, centralized heating energy supply, specialized 
services of transportation terminals, ports, airports. 
Related markets regulated under this Law are defined in Article 6 and include:  supply of natural gas 
and other substances transported through pipelines; natural gas st orage in quantities exceeding the 
level set by rules and conditions of economic activit y associated with natural gas storage (licensing 
conditions); foreign and domestic ca rriages of passengers and cargos/ freights by railroad, air, river 
and maritime transport; electric energy production in quantities exceeding the level set by rules and conditions of economic activity associated with el ectric energy production (licensing conditions); 
electric energy supply; heating energy production (save for cases when such energy  is used solely for 
meeting enterprise's own production demand) in quantities exceeding the level set by rules and 
conditions of economic activity associated with heating energy production (licensing conditions); 
provision of long-distance and in ternational telephony services.  
Natural monopolies regulation is a responsib ility of the National Commissions for Natural 
Monopolies Regulation being central executive power authorities with a special status. 
Currently, the National Commission for Electric Energy  Sector Regulation has been established with 
a responsibility for regulating prices (tariffs) to  electric energy supplies, oil and natural gas 
transportation through main and distribution pipelines, tariffs to natural gas storage, price of natural 
gas for all categories of consumers. 
The National Commission for Regulation of Natural Monopolies Entities is currently at the formation 
stage. 
Question 8 We refer to the Note to Table 1 on page 37 of WT/ACC/UKR/120, and seek: - inclusion of details of the measures relating to ferro-alloys, fire-clays, iron ores and coke 
in Table 1; and 
- submission of English translations of the two decrees mentioned in this Note to the 
Secretariat for examination in the Working Party.  
Answer:
 
Directives referred to in Note to Table 1 of WT /ACC/UKR/120 (Decree of the Cabinet of Ministers of 
Ukraine "On Creation of the Intergovernmental Commission on State Price Policy in Mining and Smelting Complex", No. 204 and Decree of the CMU "On some issues on stimulating the 
development of internal market of metals productio n" No. 179) have been invalidated in connection 
with their expiration. 
Question 9 
We refer to the minimum price measures applied to bitter aromatic beverages and spirits of 
Heading 2208 notified in Table 1 of WT/ACC/U KR/120 and seek clarification as to whether 
these minimum prices apply to imported like products. WT/ACC/UKR/126 
Page 6  
 
 Answer:
 
Resolution of the Cabinet of Ministers of Ukraine No. 700 of 21 June 2001 On Introduction of 
Minimum Prices to Domestically Produced and Impor ted Alcoholic Beverages approves the levels of 
minimum prices applying to domestic and imported alcoholic beverages.  
Question 10 
We refer to the wholesale price regulations on fertilizers Chapter 31 notified in Table 1 of 
WT/ACC/UKR/120 and seek details of these  measures, their purpose and their WTO 
justification. 
Answer:  
The mentioned legal acts were in force during a comparatively short period of time (January - 
July 2004), and both have lapsed.  Thus, there is no state interference in the process of formation of 
prices to mineral fertilizers, and nor any me asures of this kind are being contemplated. 
Question 11 
We refer to the various price measures on gla ss ware of Chapter 70 notified in Table 1 of 
WT/ACC/UKR/120 and request: 
- details of the nature of each of these meas ures, its purpose and its WTO justification; 
and 
- Information on whether minimum pr ices apply to imported products. 
Answer:  
The Resolution of the Cabinet of Ministers of Ukra ine "On Establishment of Powers of the Executive 
Power Authorities and Executive Authorities of City Councils Regarding Price (Tariff) Regulations" 
No. 1548, dated 25 December 1996 authorizes the Council of Ministers of the Autonomous Republic 
of Crimea, Oblast State Administrations, and Kiev  and Sevastopol City State Administrations to 
regulate the pledge prices to glass packaging purchased  from the public.  Therefore, pledge prices to 
glass packaging do not apply to imported goods. 
Question 12 
We refer to the price approval requirements relat ing to precious metals and precious stones of 
Chapter 71 notified in Table 1 of WT/ACC/UKR/120 and seek clarification of the purposes of price approval requirements and their WTO justification. 
Answer:
 
The state regulation of prices to precious metals a nd precious stones has been abrogated by Resolution 
of the Cabinet of Ministers of Ukraine No. 974 of 18 July 2004 "On Invalidatio n of Paragraph 4 of the 
Annex to Resolution No. 1548 of 25 December 1996".   WT/ACC/UKR/126 
 Page 7 
 
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
A. IMPORT REGULATION - Tariff rate quotas, tariff exemptions Question 13 We welcome Ukraine's intention, stated in the reply to Question 35 of WT/ACC/UKR/120, to 
prepare translations of legal instruments pertaining to the establishment and administration of 
tariff rate quotas.  We would be grateful fo r advice of when they will be made available. 
Answer:
  
The Tariff Quotas will be introduced and administered  in compliance with the provisions of draft Law 
"On Introducing Tariff Quota on Importing Raw Cane Sugar to Ukraine".  Ukraine will provide the 
wording of this draft law after the Ve rkhovna Rada of Ukraine approves it.  
Question 14 
We refer to paragraph 72 of WT/ACC/SPEC/UKR/5/ Rev.1 in relation to preferential imports 
and request an explanation of consistency of  these arrangements with GATT provisions. 
Answer:   
There is no preferential import of agricultural products in Ukraine. 
Question 15 
We welcome Ukraine's indication that the auct ioning of tariff quota was a temporary measure 
and that it does not intend to use auctioning to  allocate tariff rate quo ta for raw cane sugar 
under the WTO (paragraph 74 of WT/ACC/SPEC/UKR/5/Rev.1 refers).  We also note the reference in the reply to Question 50 of WT/ACC /UKR/120 to starting prices for the auctioning 
of tariff quota for raw cane su gar as minimum import prices. 
Answer:
  
Ukraine does not apply the minimum import prices.  The amount of starting price at the auction 
depends on the allocated rate of import duty within  the quota which is being sold and on the domestic 
market price. 
Question 16 We seek the inclusion of the following text in the section of the report on Tariff rate quotas, 
tariff exemptions: 
75A. A Member raised concerns over the use of au ctioning as a method of allocating tariff 
quota.  In the view of this Member, auction prices represented additional imposts on amounts imported under the quota that would be inconsistent with tariff commitments 
established under Article II of GATT 1994 and Article 4 of the Agriculture Agreement 
where the total imposts on those amounts were raised to levels that exceed the in-quota 
bound rate.  As well as being additional impost s on imported amounts, the auction prices 
concerned also represented minimum import prices to purchasers of products that enter WT/ACC/UKR/126 
Page 8  
 
 under the quota where they placed a floor unde r the prices payable by those purchasers 
for imports and accordingly afforded additi onal protection to domestic production, 
inconsistently with Article XI of GATT 1994 and Article 4 of the Agriculture Agreement.  
Moreover, the terms and conditions of import ation of a product subject to auctioning 
could not be fully known in advance and coul d therefore not meet appropriate standards 
of transparency and predictability under Article X of GATT 1994 and Article 4 of the 
Agriculture Agreement.  In addition, where a starting price was used under a normal 
auctioning method, the starting price woul d itself represent a minimum import price and 
accordingly would be inconsistent with Article XI of GATT 1994 and Article 4 of the Agriculture Agreement.  The Member concern ed also raised concerns over any non-
automatic licensing associated with the alloca tion or other administration of tariff quota 
that would have trade-restrictive or -distort ive effects on imports additional to those 
occasioned by the quantity-limited in-quota ra te and the out-of-quota rate, contrary to the 
provisions of the Agreement on Import Licensing Procedures.  The Member called upon Ukraine to allocate tariff quota consistently  with the WTO from the date of accession. 
75B. The representative of Ukraine said that  from the date of accession Ukraine would 
allocate tariff quota only in conformity with the WTO Agreement, including Articles I, II, 
VIII, X, XI and XIII of GATT 1994, Arti cle 4 of the Agriculture Agreement, the 
Agreement on Import Licensing Procedures and other WTO provisions.  Ukraine would 
not maintain, apply or revert to the auctioning of tariff quota for any product.  Allocation 
methods used would not have trade-restrictive or  –distortive effects on imports additional 
to those occasioned by a quantity-limited in -quota rate and an out-of-quota rate and 
would take account of the need to issue any licenses in economic quantities.  Any arrangements applied would be administe red and applied in a uniform, impartial, 
reasonable, transparent, predictable and fair  manner.  Ukraine would introduce a process 
for consultation with trading partners, im porters and exporters prior to the amendment 
of tariff quota regulations, involving public no tification of intended arrangements and the 
provision of adequate opportunity for commen ts to be made before final decisions are 
taken and implemented on such changes.  Tariff quota under the bound tariff rate quota 
for raw cane sugar would be allocated by  the first-come-first-served method.  The 
Working Party took note of these commitments. 
Answer:
  
The above-mentioned information can be reflected in  the report provided the following comments are 
taken into account:  
Comment to paragraph 75 А – the amount of starting bidding pric e depends upon the approved rate of 
import duty within the scope of the quota to be sold, and it is not related to the minimal import price; 
Comment to paragraph 75 В – The Provision about administration of this quota was sent to the WTO 
Secretariat  (WT/ACC/UKR/110/Add.1 from 24 Oc tober 2002, internal number WTO - 02-5866, 
Regulation on Allocation of Tariff Rate Quota on Raw Cane Sugar Importation into Ukraine – 
Annex 10).  The draft of the Provision is in comp liance with WTO Agreement.  This Provision will 
apply the first-come-first-served principle when gran ting licenses with a fixed part of allocated tariff 
quota.  WT/ACC/UKR/126 
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 - Customs Tariff 
Question 17 In relation to Question 32 in WT/ACC/UKR/120, we reiterate our requ est for a more detailed 
explanation as to the criteria used by Ukraine's customs authorities in deciding whether or not 
imported products fall to national tariff lines where the product coverage is based on 
geographical origin. 
Answer:
 
In order to clearly define the description of th e commodities according to  the Customs Tariff of 
Ukraine, which is based on the Combined Nomencla ture of European Union, the criteria are used, 
which are based on the documents submitted by the importe r, in particular – the certificate of origin of 
goods. 
The certificate of origin of goods should unambiguously prove that the noted goods originate in a 
relevant country and should include: 
- written application from the exporter on th e country of origin of goods; and 
- written notice by the competent authority from the exporting country, which is entitled with 
issuing the certificate, proving the truth of the data comprised in the certificate. 
The certificate of origin of goods is submitted togeth er with the customs declaration, the declaration 
of customs value and other documents, which are submitted for the customs clearance purposes. 
In the event of loss of the certificate, its o fficially notarized duplicate shall be accepted. 
- Application of Internal Taxes on Imports 
Question 18 
We are not convinced that Ukraine has met the requirements of GATT Article III in providing 
domestic support to agricultural producers via VAT refunds from agricultural production.  We 
seek a further explanation of how it meets provisions of Article III:2 in particular. 
Answer:  
In compliance with the current special regime on payment of VAT by agricultural producers the paid 
amounts of VAT are not refunded immediately.  Instead they are accumulated on the bank accounts 
opened by agricultural companies in any commerci al bank to be used for purchasing material and 
technical resources.  The tax authority oversee s whether these funds are properly earmarked.  
It is stipulated that the imported products will be charged with the same VAT rate as the domestic 
products.  Two special mechanisms of agricultural products' taxation provide for no tax benefits in 
taxation of either imported or domestic agricultural products.  Hence, for all agricultural products the 
Value Added Tax rate is set at 20 per cent.  The trading transactions with agricultural products are 
charged with a 20 per cent VAT rate as well.  This is true for both taxation mechanisms, namely for 
selling meat and dairy products to refining companies and for selli ng all agricultural products by 
agricultural companies.  
The same mechanism will be applied in the year 2005. WT/ACC/UKR/126 
Page 10  
 
 Question 19 
We welcome Ukraine's commitment in response to  Question 44 to ensure full compliance with 
of internal taxes with relevant provisions of th e WTO Agreements.  We seek further details on 
Ukraine's plans to eliminate these mechan isms in order to ensure compliance. 
Answer:
 
[The representative of Ukraine confirmed that fro m the date of accession, Ukraine would apply its 
domestic taxes including the excise taxes and the va lue added taxes in [full] compliance with the 
relevant provisions of the WTO including Articles I and III of the GATT 1994, in a non-
discriminatory manner to imports from all WTO Members and to domestically produced goods [with exemption of automobiles on  the excise taxes until 1 January 2007 and VAT until 1 January 2008]. 
The Working Party took note of this commitment.] 
- Quantitative import restrictions, including  prohibitions, quotas and import licensing 
systems 
Question 20 Ukraine has noted our requests in its replies to  Questions 46 and 47 of WT/ACC/UKR/120 in 
relation to quantitative restrictions.  We ask th at the substance of these requests be reflected in 
the text of the draft report, and that Ukraine accept the commitment proposed in Question 47. 
Answer:
 
Paragraph 120 of the Draft Working Party Report addr esses the application of quantitative restrictions 
for all sectors.  As such, there is no need to dr aft a specific commitment on quantitative restrictions. 
Question 21 
The "prior-approval" requirements mentioned in the reply to Question 49 of 
WT/ACC/UKR/120 are not automatic in the meanin g of Article 2 of the Agreement on Import 
Licensing Procedures.  The fact that Ministry of Economy and European Integration issues licenses following approval does not make their issuance automatic, given that the issuance of 
such licenses is contingent on prior approvals bein g granted by other agencies.  We reiterate our 
request that Ukraine table this and other case s of non-automatic licensing as requested in 
Question 49. 
Answer:
 
Please see Tables below for list of goods subject to non-automatic licenses.  WT/ACC/UKR/126 
 Page 11 
 
 
 Table – Import Licensing Requirements (non-automatic)  
Tariff Code Product Description Entity(ies) responsible for 
Applying the Measure Time frame to 
get the prior 
approval 
(clearing) Level of 
fee 
charged 
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)  Insecticides (except for veterinary 
medicines),    fungicides, 
herbicides, other anti-sprouting 
products and plant-growth 
regulators, rodenticides (except 
veterinary medicines), as well 
similar remedies  Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): 
The main State Inspection 
for Plant Protection of the 
Ministry of Agrarian Policy 
of Ukraine for the imports of 
herbicides 
(code 3808 10, 3808 20, 
3808 30) 
 Within 10 
working days of 
receipt of the 
required 
documentation 
 Free of 
charge  
 
3907 40 00 00 Optical polycarbonates for 
production of discs for laser 
reading systems   Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): 
The Ministry of Education 
and Science  Within 15 
working days of 
receipt of the 
required 
documentation Free of 
charge 
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 and 
are imported in aerosol package  Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): 
Ministry of Environmental 
Protection   
for 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 Within 15 
working days of 
receipt of the 
required 
documentation 
 Free of 
charge 
8415, 8418, 8419 89 10 00, 8424 10,  
8476 21 00 00, 
8476 81 00 00, 
9304 00 00 00  Products, which may contain 
ozone-depleting substances Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): 
Ministry of Environmental 
Protection   Within 15 
working days of 
receipt of the 
required 
documentation 
  Free of 
charge WT/ACC/UKR/126 
Page 12  
 
 Tariff Code Product Description Entity(ies) responsible for 
Applying the Measure Time frame to 
get the prior 
approval 
(clearing) Level of 
fee 
charged 
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 Ozone-depleting substances Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): Ministry of Environmental 
Protection Within 15 
working days of 
receipt of the 
required documentation 
 Free of 
charge 
3215 11 00 00 
3215 19 00 00  Only printing ink, defined 
according to the methods 
established by the Ministry of 
Finance and the State Customs 
Service, with protective qualities, 
in particular: fluorescence and 
change of colour in the rays of 
ultra-violet light; change of colour 
during the heating or cooling; 
reaction on polar or non-polar 
dissolvents and oxidants; invisible 
in the rays of infra-red light; 
penetrating onto the reverse side 
of the paper accompanied by 
change in colour Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): 
Ministry of Finance Within 15 
working days of 
receipt of the 
required 
documentation 
 Free of 
charge 
4802 52  4802 53  Uncoated paper with water marks 
not containing the fibre obtained 
mechanically, or in which such 
fibres content reaches not more 
than 10% of the gross weight of fibre weighting 40g per 1m2  or 
more Issuance of Licence: 
Ministry of Economy and 
European Integration 
Prior Approval (Clearing): 
Ministry of Finance Within 15 
working days of 
receipt of the 
required 
documentation  Free of 
charge 
 
Question 22 
There are a number of issues arising from Question 50 of WT/ACC/UKR/120 in relation to 
which we seek clarification.  WT/ACC/UKR/126 
 Page 13 
 
 
 It is stated that there are no bans on imports.  We seek clarification that there are no import 
bans to protect human, animal or plant life or health. 
Answer:  
As a whole there are no bans on imports. Import bans to protect human, animal or plat life or  health could be settled in exceptional cases and if 
it is in compliance with Article XX (b). 
Question 23 
It is stated that there are no import quotas,  except safeguard measures and some preferential 
import quotas with FYROM.  Preferential impo rt quotas established under FTAs do not meet 
the requirements of Article XXIV:8(b) of GATT 1994.   We seek clarification as to how will these 
measures be brought into conformity with the WTO by the date of accession. 
Answer:
 
Ukraine will notify its agreement with FYRO M upon accession to the WTO Committee on Regional 
Trade Agreements and will take measures as recommended by the said committee. 
Question 24 
We note that in the reply to Question 50 of WT /ACC/UKR/120 it is stated  that production of 
sugar from imported raw materials is condition al on the exportation of the sugar produced 
from those raw materials.  We seek clarification as to when this provision of Article 3.11 of the Law on State Regulation of Production and Sale  of Sugar No. 758-XIV of 17 June 1996 will be 
repealed. 
Answer:
  
Ukraine will take the commitment on applying the ta riff quota for importation of raw cane sugar after 
its accession to the WTO.  In order to reflect  that commitment Ukraine will amend the above-
mentioned Law, in particular the norms of Article  3.11 will no longer be applied in respect to the 
volumes of quota.  
Question 25 
It is indicated that import prepayments for goods and services of terms exceeding 90 days are 
subject to a requirement to obtain a licence from  the National Bank of Ukraine.  Please reflect 
this important information in the text of the section of the report on Foreign Exchange and Payments, and comment on the rationale for such requirements. 
Answer:
 
Ukraine does not have any objections to reflect in Draft Report. 
This provision is aimed at prevention of illegal flow -out of capital outside Ukraine, inexpedient use of 
foreign currency, and it also restrains the reside nt importers from providing credits to non-resident 
providers for longer than 90 days. Such a restricti on on crediting is considered to be a restriction for 
the transactions of capital nature, and can be alleviat ed according to some types of the agreements or 
eliminated by way of obtaining an individual li cence of the National Bank of Ukraine for the WT/ACC/UKR/126 
Page 14  
 
 extension of the term of payment established by  the law.  The list of the above types of the 
agreements is established by the Law of Ukrain e "On the Procedure for Payments in Foreign 
Currency" and consists of the agreements on the production cooperation, consignment, complex 
construction, operative and financial leasing, deliv ery of complex technical products and goods of 
special designation, i.e. by th e agreements, which may objectivel y require the term exceeding 90 
calendar days for the fulfilment thereof. 
Question 26 
It is indicated that private barter transactions are subject to a requirement to obtain a licence 
from the Ministry of Economy and European In tegration.  We request this information be 
reflected in either in the section of the report on Foreign Exchange and Payments or on 
Government-mandated counter-trade and barter.   Please indicate the rationale and WTO 
justification for such trade licenses. 
Answer:
 
Barter transactions are not subject to licensing as a separate type of transactions. According to Article 16 of the Law of Ukraine "On Foreign Economic Activity", licensing of the 
commodity exchange (barter) transactions is carri ed out only in case if the subjects of these 
transactions are the goods, which export (import) is subject to licensing as is established by the interstate agreements. 
Question 27 
There are several issues arising from Table 6- 7 of WT/ACC/UKR/120, in relation to which we 
seek clarification. 
We are concerned by GATT Article XX(c) justifications provided for import approvals in 
relation to "precious metals and alloys and precious stones".  None of these products are gold or silver.  We seek the elimination of the import approval requirements for all of these products by 
the date of accession. 
Answer:
 
Notwithstanding the fact that the Law of Ukrain e "On Foreign Economic Activity" provides for the 
possibility of import approval in relation to "preci ous metals and alloys and precious stones", in 
practice no import approval for "precious metals and a lloys" is applied to imports of "precious metals 
and alloys and precious stones". 
Question 28 
Also regarding Table 6 of WT/ACC/UKR/120, we are concerned with GATT Article XX(g) 
justifications provided for import approvals for s crap metal.  Scrap metal is not an exhaustible 
natural resource.  We seek the elimination of th e import approval requirements for all of these 
products by the date of accession. 
Answer:  
In fact requirement of import approvals for scrap metal could be justified by Article XX(b), since the 
Ministry of Environmental Protection issues the import approval (clearing) on the basis of  WT/ACC/UKR/126 
 Page 15 
 
 
 correspondence to requirements relative to ecol ogical and radiation safety, contained harmful 
substances, level of the radiation dosage, etc. 
Question 29 
Regarding Table 7 of WT/ACC/UKR/120, we have concerns over activity licensing 
requirements for importation of products listed (other than narco tics, psychotropic substances 
and precursors).  Could Ukraine please elaborate on  the rationale for such activity licensing for 
importation? 
Answer:  
The main reasons are to protect against deceptiv e practices and ensure protection of intellectual 
property rights. 
Question 30 In relation to Question 48, we reiterate our requ est for clarification of the existence of any 
automatic import licensing requirements. 
Answer:
 
The Law of Ukraine "On Foreign Economic Activit y" provides for the system of automatic import 
licensing. 
The list of goods subject to automatic import licensi ng approved by the Resolution of the Cabinet of 
Ministers of Ukraine No. 1722 of 23 Decemb er 2004 and refers the following commodities: 
- postal stamps and analogous goods, un-cancelled, being in turnover or subject to getting into 
turnover in the country of destination, stamp paper (code of CN FEA 4907 00 10, 
4907 00 91 00, 4907 00 99 00); and 
- copper sulphate (code of CN FEA 2833 25 00 00). 
B. EXPORT REGULATIONS  
–  Export restrictions Question 31 We welcome the information provided in response to Question 52 of WT/ACC/UKR/120 and set 
out in Tables 9-18 of that document, but would appreciate its tabulation in one place with the 
proposed six columns and copied to the Working Party report. 
Answer:
 
This request will be forwarded to the WTO Secretariat. 
Question 32 
We refer to the advice in reply to Question 53 stat ing that no export bans have been applied to 
maize and barley recently.  We seek clarification as to whether export restrictions of any kind 
have been applied to maize and barley recently. WT/ACC/UKR/126 
Page 16  
 
 Answer:
 
There haven't been applied any export restrictions.  
Question 33 
We refer to advice in the reply to Question 53 that exports of scrap metals and primary 
metallurgical products of copper are banned if th ey are intended for processing abroad and the 
processed products are intended to be imported.  In other words, the measure also bans the 
importation of products processed from scrap me tals or primary metallurgical products of 
copper exported from Ukraine.  This measur e will need to be eliminated upon accession. 
Answer:  
In accordance with Article 9 of the Law of Ukraine On Scrap Metals, exportati ons of scrap metals are 
prohibited regardless of their intended use. No ba ns on copper ore exports exist in Ukraine. In 
addition to this, the government of Ukraine is planni ng to review the above restriction in the nearest 
future. 
Question 34 
We refer to advice in the reply to Question 53 of WT/ACC/UKR/120 that exports of scrap from 
certain used machinery and transport equipment it ems are banned.  This measure will need to 
be eliminated upon accession.  
Answer:  
The answer to Question 53 has been  construed in a wrong way. According to Article 9 of the Law of 
Ukraine On Scrap Metals, it is di sallowed to export scrap metals ge nerated in military units, military 
institutions and military educational establishments  of the Armed Forces of Ukraine and in other 
military formations. This provision is fully consistent with Article ХХІ of GATT 1994 "Exceptions 
Based on Security Reasons", pa rticularly its subparagraph b( іі). Furthermore, due to security reasons, 
no exports of parts and units of machines, ships, vessels, military equipment and machinery, railroad 
rolling stock in an assembled condition written off as scr ap metal are allowed.  Accordingly, export of 
scrap of the above described parts and units in a di sassembled condition is allowed.  This provision is 
also fully compatible with Article XXI of GATT 1994. 
Question 35 
We refer to advice in the reply to Question 53 of WT/ACC/UKR/120 that owners of sugar are 
obliged to comply with their obligations under th e A and B Quotas before they are allowed to 
export under the C Quota.  The aspect relating to the obligation to supply the A Quota before 
exportation is permitted is an export prohibit ion, inconsistent with Article XI of GATT 1994 
unless an appropriate justification can be found.  The aspect relating to the obligation to supply 
the B Quota is a restriction that stipulates how sugar  must be exported that is inconsistent with 
Article XI of GATT 1994, and given that it would affect the destination of such exports, is also inconsistent with Article I of GATT 1994.  We seek: 
- notification of these measures (with the obligations under A and B Quotas as separate 
measures) in the table on export restrictions; and 
- plans on the elimination of the B Quota by the date of accession.  WT/ACC/UKR/126 
 Page 17 
 
 
 Answer:  
There are no provisions mentioned by this Member  with regard to the queue in implementing the 
obligations on quotas in the Law of Ukraine "On the State Regulation of Sugar Production and Sale" 
No. 758 of 17 June 1999.  It was explained in the answer to the question that owners define on their 
own the amounts of sugar to be exported, taking in to account the implementa tion of obligations under 
A and B Quotas.  It does not mean that the owners of sugar are obliged to implement their 
commitments under A and B Quotas before they will be allowed export under C Quota.  Moreover, B 
and C Quotas have not been established a nd allocated among the market traders. 
Question 36 
We refer to the legal provision (mentioned in the reply to Question 53 of WT/ACC/UKR/120) 
for the imposition of restrictions on the expo rt of ferrous metal scrap by the Cabinet of 
Ministers, depending on the need for ferrous meta l scrap.  This legal provision will need to be 
revoked by the date of accession and from the da te of accession Ukraine will need to refrain 
from the practice of restricting export of ferrous metal scrap. 
Answer:  
There are no restrictions applying to ferrous metals  export in Ukraine, though there is an export duty 
applying at the rate of € 30 per tonne.  Upon accessi on to WTO, Ukraine has committed to reduce this 
duty rate down to € 25 per ton with subsequent, in  a five-year term, reduction down to € 20 per tonne 
(€ 1 off annually). 
Question 37 
Voluntary export restraints are prohibited under Article 11.1(b) of the Safeguards Agreement.  
We seek: 
- an indication as to how the provisions of Article 2(15) will be deleted from the Law on 
Operations of Give-and-Take Raw Materials in Foreign Economic Relations No. 327/95-VR of 15 September 1995 by the date of accession; and 
- a list of the international agreements that contain provisions applied by Ukraine by 
means of voluntary restraints or exports or imports. 
Answer:
 
Currently, operations with raw materials supplie d on a tolling (give-and-take) basis in foreign 
economic relations are governed by the La w of Ukraine No. 2761-III of 4 October 2001 On 
Amendments to the Law of Ukraine On Operations  with Raw Materials Supplied on a Tolling Basis  
in Foreign Economic Relations. 
In compliance with international agreements of Ukraine, voluntary restriction of metal products 
exportation only exists in Ukraine.  No operations  with metal products supplied on a tolling basis are 
carried out.  
At the same time, it should be noted that the voluntar y export restriction referred to above is a forced 
measure dictated by the necessity of meeting Ukrain e's obligations under its international agreements 
initiated actually by Ukraine's trading partners in order to limit Ukrainian products access to 
respective markets. WT/ACC/UKR/126 
Page 18  
 
 On Ukraine's accession to WTO, this issue will be lifted since both Ukraine's voluntary restrictions 
and requirements posed by its trading partners be ing WTO member-states to the effect of such 
restrictions introduction will no longer conform to Article 11.1 (b) of the Agreement On Safeguard 
Measures. Accordingly, respective amendments will be entered in Paragraph 15 of Article 2 of the 
Law of Ukraine No. 2761-III of 4 October 2001 On  Amendments to the Law of Ukraine On 
Operations with Raw Materials Supplied on a Tolling Basis in Foreign Economic Relations. 
Question 38 
We refer to the interpretation of GATT Article XX(c) exceptions put forward in the response to 
Question 54 of WT/ACC/UKR/120 seeking coverage fo r substitutes for gold and silver.  This is 
not relevant to this exception, and our concerns st and.  We request that the measures for which 
this limited exception has been sought be eliminated by the date of accession. 
Answer:
 
According to GATT Article XX (General Exceptions) not hing in this Agreement shall be construed to 
prevent the adoption or enforcement by any contract ing party of measures re lating to the importation 
or exportation of gold and silver ( GATT Article XX (c)).  As far as  precious metals and stones are 
concerned, Ukraine regards these  items as (exhaustible natural resources) substitutes for gold and 
silver and therefore considers GATT Article  XX (c) applicable in the mentioned case. 
Question 39 
Regarding Table 9 of WT/ACC/UKR/120, we are concerned by GATT Article XX(g) 
justifications provided for the ban on exportatio n of non-ferrous metal waste and scrap.  Scrap 
metal is not an exhaustible natu ral resource.  We seek the eliminat ion of the export prohibitions 
on all of these products by the date of accession. 
Answer:  
Prior to the date of its accession to the WTO, Uk raine will eliminate a prohibition on the exportation 
of non-ferrous scrap and s ubstitute such prohibition w ith setting an export duty rate.  Possible value of 
export tax is being estimated.  The final value will be provided later. 
Question 40 Regarding Table 10 of WT/ACC/UKR/120, we are concerned by GATT Article XX(c) 
justifications provided for the prior approval re quirements for the exportation of all products 
listed, with subsequent licensing by the Minist ry of Economy and European Integration.  We 
remain to be convinced that the measures on  gold and silver are significant measures of 
currency control in Ukraine.  We seek the elimin ation of the prior approval requirements for all 
of these products by the date of accession. 
Answer:
 
The export licensing procedure applying to items liste d in Table 10 provides of a prior approval to be 
received from the Ministry of Finance of Ukraine since the question of precious metals turnover 
regulation  refers to the jurisdiction of this institut ion.  It must be also not ed that the Ministry of 
Economy and European Integration of Ukraine has not issued a single licence to gold or silver export 
because none were requested.   WT/ACC/UKR/126 
 Page 19 
 
 
 In addition to that, Ukraine does not consider that  a requirement whereby prior approval is made a 
condition violates WTO rules in the light of a provision contained in the Agreement On Import Licensing Procedures, in particular – in its Article 1(6) which clearly states that "in the events when referrals to more than one administrative authority are required, applicants will have to apply to not 
more than three administrative authorities".  
Question 41 We refer to the export contro l measures notified in Tables 11-14 of WT/ACC/UKR/120 and the 
export licensing measures notified in Table 16.  Please indicate any plans that Ukraine may have to eliminate these measures. 
Answer:
 
In accordance with Resolution No. 17 22 of the Cabinet of Ministers of Ukraine of 23 December 2004 
On Approval of the List of Goods Export and Im port of Which is Subject to Licensing and Falling 
Under Quotas in 2005, the goods listed in Table 16 are no longer subject to export licensing measures. 
Goods listed in Tables 11 – 14 remain  – by necessity  – under export control measures due to the need 
to meet obligations under bilateral international agreements signed by Ukraine with the view of 
prevention from obstructing Ukrainian goods' access to respective market. Said measures will be 
abrogated upon termination of effect of these agreements. 
Question 42 
We note that, in Table 15 of WT/ACC/UKR/120, exports of iron ore and concentrates falling to 
HS heading 26.01 are subject to prior approval and licensing requirements. 
Do these measures apply exclusively to iron o re and concentrates produced in Ukraine?   
Answer:  
Yes, these measures apply exclusively to iron ore and concentrates produced in Ukraine. 
Question 43 
Are these measures made effective in conjunc tion with restrictions on production and 
consumption?  If not, they will all need to be eliminated upon accession. 
Answer:  
No, they are not. Licensing of export of raw material s of iron ore has been introduced with the view of 
improving mechanism of state regulation of operations  with kinds of raw materials being strategically 
important for Ukraine and for the pur pose of economic balance improvement. 
Question 44 
We also note that, in Table 15 of WT/ACC/U KR/120, exports of a number of products of 
copper, aluminium and lead falling to HS Chap ters 74, 76 and 78, and a number of machinery 
parts falling to HS Chapter 84 relating to meta l working are subject to prior approval and 
licensing requirements.  All of these prior approval  and licensing requirements will need to be 
eliminated by the date of accession. WT/ACC/UKR/126 
Page 20  
 
 Answer:
 
The procedure of said items export licensing provides for obtaining prior approvals from the Ministry 
of Economy and European Integration of Ukra ine since the question of these goods turnover 
regulation refers to the jurisd iction of this institution.  
In addition to that, Ukraine does not consider that  a requirement whereby prior approval is made a 
condition violates WTO rules in the light of a provision contained in the Agreement On Import 
Licensing Procedures, in particular – in its Article 1(6) which clearly states that "in the events when referrals to more than one administrative authority are required, applicants will have to apply to not 
more than three administrative authorities". 
Question 45 
We note further that, in Table 15 of WT/ACC /UKR/120, exports of a number of petroleum 
products falling to HS headings  2709 and 2710 are subject to  prior approval and licensing 
requirements (Ukraine claims justification under GATT Article XX(g)).  All of these prior approval and licensing requirements will need to be  eliminated by the date of accession.  We are 
not aware of any restrictions on domestic pro duction and consumption in order to make any 
restrictions applied effective. 
Answer:
 
In accordance with Resolution No. 17 22 of the Cabinet of Ministers of Ukraine of 23 December 2004 
On Approval of the List of Goods Export and Im port of Which is Subject to Licensing and Falling 
Under Quotas in 2005, oil products referring to cat egories HS 2709 and 2710 are no longer subject to 
the effect of export licensing measures. 
Question 46 We note that, in Table 17 of WT/ACC/UKR/120, export approvals are applied to precious 
metals and alloys and precious stones.  However none of the products cited would be covered by 
the GATT Article XX(c) exception.  We seek the elimination of the export approval requirements for all of these products by the date of accession. 
Answer:
 
Please see Answer to Question 40. 
Question 47 
The reply to Question 56 of WT/ACC/UKR/120 see ms to imply that the products subject to 
minimum indicative export prices are also subjec t to export contract registration requirements.  
We seek: 
- clarification as to whether or not this is correct; 
- an explanation of the relationship between mi nimum indicative export prices and export 
contract registration requirements; 
- an indication as to whether all products subj ect to minimum indicative export prices are 
required to be subject to export contract registration requirements; 
- information on what products (if any) subj ect to minimum indicative export prices are 
not subject to export contract  registration requirements; and  WT/ACC/UKR/126 
 Page 21 
 
 
 - information on what products subject to ex port contract registration requirements are 
not subject to minimum indicative export prices. 
Answer:   
Minimal indicative export prices used by Ukraine in January 2005. (-  - measure not applied to th e product indicated; +  - measur e applied to product indicated) 
No. Products Price 
(US$/MT, FOB Ukrainian ports) Export 
duty Registration of 
export contract 
Armature, ASTM standard  (*):   - - 
if supplied to the Middle East except Iraq     
code 7214:     
diameter up to 10 mm  335   
diameter over 10 mm  325   
code 7213 325   
code 7228:     
diameter up to 10 mm  335   
diameter over 10 mm  325   
if supplied to the USA:     1 
codes 7213, 7214, 7228 325   
Armature, other standards (*):   - - 
if supplied to the Middle East:     
code 7214     
diameter up to 10 mm  320   
diameter over 10 mm  315   
code 7213 315   
code 7228:      
diameter up to 10 mm  320   2 
diameter over 10 mm  315   
Rolled wire (*) if supplied to the USA:    - - 
diameter 5,5 mm  385   3 
diameter over 5,5 mm  385   
Billet(*) 280 - - 4 
if supplied to Egypt: 285   
Hot-rolled coil (*)** 400 - + 
if supplied to Mexico, Canada, Argentina, 
India and Egypt  400   
if supplied to the USA  500   
if supplied to China, Turkey, Israel, the 
United Arab Emirates 385    5 
  500   
Hot-rolled sheet, thickness 8 - 50 mm (*)** 475 - + 
if supplied to Latin America and India 485   
if supplied to the USA:    
А–36 607.82   
А–572 655.18   
А–516 660.25   
АРІ–2Н 897.30   
А–283 603.14   
АВС  А/В 611.61   6 
А–515 655.25   
Ferrosilicon–65 500 - + 7 
Ferrosilicon–75 600   
Ferrosilocon manganese   - + 
Р–0.35%  632   
Р–0.50%  584   
Р–0.35% BT*** 646   8 
Р–0.50% BT*** 627   WT/ACC/UKR/126 
Page 22  
 
 No. Products Price 
(US$/MT, FOB Ukrainian ports) Export 
duty Registration of 
export contract 
Р–0.60% BT*** 622   
if supplied to the EU, CIF ****     
С>0.5% € 660   
C<0.5% € 775    
C<0.05% € 835   
9 Carbamide  180 - + 
Ammonia 230 - + 10 
for the second half of January, 2005, 
FOB/DAF) 170   
Live cattle*****   + + 
weight up to 350 kg/head  1,250-1,350   11 
weight over 350 kg/head  1,200-1,300   
Live rams and sheep*****   + + 
weight up to 30 kg/head  1,050-1,200   12 
weight over 30 kg/head  1,000-1,100   
Cattle skins wet-salted and otherwise 
preserved, non-circumscribed, automatic takeoff (**) *****   + + 
1st class  1,550-1,650   
2nd class 1,450-1,550   
3rd class  1,315-1,400   
4th class  1,200-1,300   13 
Weight up to 10 kg, 1st class  2,450-2,850   
Sheep skins, wet-salted (US$/piece.) *****  + + 
1st class  5.0–6.0   
2nd class  4.0–5.0   
3rd class  3.0–4.0   14 
4th class  1.7–3.0   
15 Swine skins wet-salted and otherwise 
preserved, non-circumscribed, automatic 
takeoff: ******   + + 
  1st class  775-850   
  2nd class 725-770   
  3rd class  650-690   
  4th class  600-630   
16 Flax seed, grinded or non-grinded***** 400 + - 
17 Sunflower seed, grinded or non-
grinded***** 315 + - 
18 Red flax seed***** 150 + - 
19 Electric power (US$/kWt/h) if supplied to 
Bulgaria, Moldova, Poland, Romania, 
Slovakia, Czech Republic and 
Hungary****** 0.0205 - - 
 
Note:  
*  unless otherwise specified. 
**  in case of supplies of metal products with a ch emical composition of higher quality the price 
may be higher. 
***  BT – basic ton of non-fractional alloy. ****  FOB price is € 19.5 different to CIF price. *****  on FOB terms – Black Sea ports  or DAF – the Ukrainian border. 
******  on DAF terms – the Ukrainian border.  
(*) Ports of the Azov Sea, Zaporizhya, Dnipropetrovsk - US$ 5/MT discount. (**)  For wet-salted skins, non-circumscribed, manual takeoff, prices according to the class are 
reduced to 10 per cent respectively.  WT/ACC/UKR/126 
 Page 23 
 
 
 In addition, not all goods exporte d on condition of the registration of foreign economic agreements 
(contracts) are subject to indicative prices. Such goods are as follows:  
- silicon carbide; 
- wastes and scrap of ferrous metals; 
- flat-rolled products of iron or non-alloy steel, of  a width of 600 mm or more, clad, plated or 
coated; 
- flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, not clad, plated 
or coated; 
- flat-rolled products of iron or non-alloy steel, of  a width of 600 mm or more, clad, plated or 
coated, painted, varnished or coated with plastics; and 
- stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically 
insulated (for EU and India markets). 
Additionally developed is a Draft Pr esidential Decree that cancels th e requirement to register export 
contracts. Presently the said Draft is agreed upon by all ministries and departments involved, and will 
very soon be forwarded to the President of Ukraine.  
Question 48 We are unable to see the rationale and WTO just ification for export contract registration. 
Please list all products subject to export contract  registration requirements in the list of export 
restrictions that we requested in Question 52 of WT/ACC/UKR/120. 
We request the elimination by the date of accession all export contract registration 
requirements that do not have a valid WTO justif ication indicated in the final column of that 
table. 
We would not see the "need" for minimum indicative export prices as a valid justification for 
any export contract registration requirement. 
Answer:
  
See answer to Question 40. Question 49 The reply to Question 55 of WT/ACC/UKR/120 i ndicates there are products exported under 
"special regimes". 
What are "special regimes"?  What exactly mak es them "special"?  How are they established? 
Answer:
  
A special treatment should be understo od as a treatment other than usual, free or preferential trade. An 
example of such special treatment may be enteri ng into an agreement on suspension of antidumping 
investigation with respect to goods of the Ukra inian origin, whereby Ukraine assumes certain price 
obligations.  An example of such agreement is th e one between the US Depa rtment of Commerce and 
the Government of Ukraine on suspending the anti dumping investigation on certain cut-to-length 
carbon steel plate from Ukraine. WT/ACC/UKR/126 
Page 24  
 
 Question 50 
Please list the "special regimes" applied in th e most recent calendar year, and indicate the 
products exported and imported under them. 
Answer:
  
An example of a "special treatment" applied l ast calendar year, as well as a product exported under 
such treatment is provided in the answer to the previous question.  In addition, the list of products of 
the Ukrainian origin subject to the antidumpi ng procedures includes:  ferro-silicon, ferro-silico-
manganese, carbamide, steel rolled products in co ils, thick-plate rolled products, ammonia, and 
armature. 
Question 51 
Why are minimum indicative export prices a pplied in the case of trade under "special 
regimes"? 
Answer:   
The purpose of introduction of minimal indicative pr ices is ensuring of sale of the Ukrainian products 
for the estimated price effective at the market of destination, which makes it possible to prevent the 
continuation of antidumping investigations or initia tion of new investigations against the Ukrainian 
exporters and preservation of the existing sales mark ets for the national producers.  The measure is 
applied since the Ukrainian producers may not observe  the minimal prices, estab lished in the result of 
an investigation or according to a relevant bilateral agreement. 
Question 52 
The reply to Question 55 of WT/ACC/UKR/120 indica tes that minimum indicative export prices 
are applied to products which are, or may be , subject to anti-dumping measures.  We are 
unable to see the WTO justification for this, partic ularly given that export contract registration 
requirements appear to be associated with th e use of minimum indicative export prices. 
Please explain what such minimum indicative export  prices are intended to achieve in this case. 
Answer:   
The purpose of introduction of minimal indicative pr ices is ensuring of sale of the Ukrainian products 
for the estimated price effective at the market of destination, which makes it possible to prevent the 
continuation of antidumping investigations or initia tion of new investigations against the Ukrainian 
exporters and preservation of the existing sales mark ets for the national producers.  The measure is 
applied since the Ukrainian producers may not observe  the minimal prices, estab lished in the result of 
an investigation or according to a relevant bilateral agreement. 
Question 53 Why can't intending traders find out for themselv es whether or not the goods they buy or sell 
may be subject to anti-dumping action?  WT/ACC/UKR/126 
 Page 25 
 
 
 Answer:   
Traders that intend to sell or purchase certain products may clarify on their own whether such 
products are subject to antidumping investigations. This may result in extension of sanctions or 
initiation of new investigations. 
Question 54 
The reply to Question 55 of WT/ACC/UKR/120 indica tes that minimum indicative export prices 
are applied in the case of "special import procedures". 
Please explain more fully what "special import  procedures" are.  Whose "special import 
procedures" are they?  Ukraine's or the country to which the goods are exported? 
Please explain what such minimum indicative expo rt prices are intended to achieve in the case 
of "special import procedures". 
Answer:   
The Decree of the President of Ukraine No.124/96 "On Measures to Improve the Market and Price 
Policy in the Area of Foreign Economic Activity" of 10 February 1996 introduces indicative prices. 
According to the Decree indicative prices may be intr oduced in particular to products subject to the 
special import procedures as provided for by Article  19 of the Law of Ukraine "On Foreign Economic 
Activity".  In this case the special import procedur es of Ukraine are meant, rather than a country 
whereto a product is exported. According to this article the special import procedures applied in 
Ukraine include the following:  
- application of the procedure of interna tional bid or a similar procedure; and 
- the treatment of preliminary import deposits placed in banks. 
It should be mentioned that the said procedures are in fact not applied in Ukraine, and that the new 
Draft Law "On Foreign Economic Activity" developed by interested ministries and departments does 
not provide for any special import procedures. 
Question 55 
The reply to Question 55 of WT/ACC/UKR/120 indica tes that minimum indicative export prices 
are applied where quantitative restriction or licensing is applied. 
Is this a reference to quantitative restriction or licensing by Ukraine or quantitative restriction 
or licensing by the country importing goods from Ukraine? 
Answer:   
The point here is the establishment of minimal i ndicative prices for products of the Ukrainian origin, 
with respect to which an importing state imposed a quota or licensing treatment. 
Question 56 Please explain what such minimum indicative export  prices are intended to achieve in this case? WT/ACC/UKR/126 
Page 26  
 
 Answer:
  
The purpose of introduction of minimal indicative export prices in this case is ensuring of sale of the 
Ukrainian products for the estimated price effectiv e at the market of destination, which makes it 
possible to prevent the imposition of restrictive tr ade measures against the Ukrainian exporters and 
preservation of the existing sales markets for the nati onal producers.  This measure is applied since 
sellers of sensitive Ukrainian products not always  establish prices that correspond average market 
prices, which, in its turn results in appl ying restrictive measures by the importing side. 
Question 57 
If the quantitative restriction or licensing has a valid WTO justification (e.g., in the case of 
hazardous or dangerous materials), precisely how do minimum indicative export prices enhance 
the measure?  We perceive no connection or an y need for minimum indicative export prices. 
Answer:   
See answer to the previous question. 
Question 58 
The reply to Question 55 of WT/ACC/UKR/120 indica tes that minimum indicative export prices 
are applied in "other instances" of the implemen tation of Ukraine's international commitments. 
Could Ukraine please be more specific about what it means and supply some examples? 
Could Ukraine please list the international co mmitments implemented by means of minimum 
indicative export prices. 
Could Ukraine specify what international commitm ents it has that require it to control the 
prices of products exported from its territory. 
Answer:   
According to the provisions of Section IV. D of the Agreement on suspending the antidumping 
investigation on certain cut-to-length carbon steel pl ate from Ukraine between the US Department of 
Commerce and the Government of Ukraine in 1997, cut-to-length carbon plate products are subject to indicative prices. 
Question 59 The reply to Question 55 of WT/ACC/UKR/120 indicates a number of cases where minimum 
indicative export prices are applied. 
Is this list exhaustive? If this list is not exhaustive, please indicate what is missing. 
Answer:
  
Yes the said list of cases is exhaustive.  WT/ACC/UKR/126 
 Page 27 
 
 
 Question 60 
The reply to Question 58 of WT/ACC/UKR/120 indica tes that minimum indicative export prices 
are required where export duties are applied. 
What is the rationale for this? What is the WTO justification? 
Answer:
  
According to the Laws of Ukraine "On Export Duty  for Livestock and Leather Raw Materials" and 
"On the Rates of Export Duty for Seed of Some Oil Cultures" products mentioned in these laws are 
subject to indicative prices. 
Introduction of indicative prices for the products indi cated in the aforementioned Laws of Ukraine is 
done to prevent a decrease of the customs value while collecting the ad valorem  and combined duty. 
Question 61 
The reply to Question 59 of WT/ACC/UKR/120 states the price of goods on which export duty is 
paid "is set taking into account indicative prices". 
What does Ukraine mean by "taking into account"? 
Answer:   
The word "taking into account" means that export prices for products subject to export duty should 
not be lower than minimal indicative export prices of  such products, on condition of the absence of an 
agreed rationale of an alternative (lower) price. 
Question 62 
Is there are a legally binding requirement on ex porters to take indicative prices into account? 
Answer:   
Yes, according to the Decree of the President of Ukraine "On Measures to Improve the Market and 
Price Policy in the Area of Foreign Economic Activ ity" in cases, specified by the Decree contract 
prices in the sphere of foreign economic activity shall be established by subjects of foreign economic activity of Ukraine in accordance with the indica tive prices established by the Ministry of Economy 
and European Integration of Ukraine. 
Question 63 
Is there are a legally binding requirement on ex porters use indicative prices as their export 
price? 
Answer:
  
No, there is none. WT/ACC/UKR/126 
Page 28  
 
 Question 64 
Or can exporters free to export at whatever expo rt price they want, regardless of the level of the 
minimum indicative export price? 
Answer:
  
They may, only on condition of obtaining an approved expert opinion. According to the Order of the 
Ministry of Foreign Economic Relations and Trad e of Ukraine No. 547-a of 31 August 1998 in the 
event of deviation of the contract price from the i ndicative price an expert opinion is required issued 
by the State Informational and Analytical Centre for Monitoring of External Product Markets, which 
according to the Decree of the President of Ukrain e No. 124/96 of 10 February 1996 is authorized to 
provide expert assistance to enterprises, institutio ns and organizations in their foreign economic 
activity based on additional documents furnished by  the applicant confirming rationale of such 
deviation. 
Question 65 
The reply to Question 60 of WT/ACC/UKR/120 avoids the question. What difference would it make if external prices , instead of minimum indicative export prices 
were applied to products subject to export duti es?  If there is no difference, why are minimum 
indicative export prices applied at all? 
Answer:
  
Introduction of indicative prices for products subject to export duty is done with the purpose of 
prevention of decreasing the customs value at collecting the ad valorem  and combined duty. 
An estimated price difference is impossible to co mpute as price is established by the exporter on its 
own separately in each individual case. In the event of  the absence of minimal indicative export prices 
there would certainly be a difference in some cases. 
Question 66 
Without a minimum indicative export price, would the amount of export duty collected 
normally be less? 
Answer:   
Yes, it would in the event of the exporter's intenti on to reduce the export duty rate through decreasing 
the customs value of the product of high demand outside Ukraine. 
Question 67 
Is an exporter legally able to declare to customs an export price that bears no relationship to the 
applicable minimum indicative export price?  If so, can a different export price then be 
imposed? 
Answer:   
Yes, it does only on condition of obtaining an approve d export opinion. According to the Order of the 
Ministry of Foreign Economic Relations and Trad e of Ukraine No. 547-a of 31 August 1998 in the  WT/ACC/UKR/126 
 Page 29 
 
 
 event of deviation of the contract price from the i ndicative price an expert opinion is required for 
customs proceedings issued by th e State Informational and Analytical Centre for Monitoring of 
External Product Markets, which according to the D ecree of the President of Ukraine No. 124/96 of 
10 February 1996 is authorized to provide expert  assistance to enterprises, institutions and 
organizations in their foreign economic activity based on additional documents furnished by the 
applicant confirming rationale of such deviation. 
Question 68 
The reply to Question 61 of WT/ACC/UKR/120 raises the question as to why it would be 
necessary to consult Ukrainian producers on the se tting of minimum indicative export prices if 
binding requirements in relation to such pri ces did not apply.  We seek clarification. 
Answer:   
From the moment of passing the Decree of the Presi dent of Ukraine No. 124/96 of 10 January 1996 
"On Measures to Improve the Market and Price Polic y in the Area of Foreign Economic Activity" at 
the end of each month, as well as in the event of a ch ange of the situation at the global market during 
a month, relevant information regarding the pr ice level for certain product groups shall be 
immediately submitted for considera tion of the indicative prices council arranged by the Ministry of 
Economy with the participation of leading Ukra inian exporting producers. Leading Ukrainian 
producers shall participate in the said council on a voluntary basis. Such consultations shall be 
arranged with exporters with the purpose of taki ng into account their position and interests, as 
observing the requirements as to the minimal indicative export prices (including the flexibility of deviating from them, as mentioned in the answ er to Question 50) has a mandatory nature. 
Question 69 The reply to Question 62 of WT/ACC/UKR/120 su ggests that, where there are deviations from 
minimum indicative export prices, government ex perts pay the deviating enterprise a visit to 
provide administrative guidance on the price at which the enterprise may export its products. 
Does this characterise the situation correctly?  Please rectify this characterisation if something 
is wrong. 
Answer:
  
No, the said interpretation of the answer to Ques tion 62 is wrong. The answer to Question 62 has no 
reference to "experts of governmental authorities that attend enterprises" or "administrative 
instructions as to the price, for which an enterpri se may export its products". The said answer contains 
a reference only to the expert assistance to produ cers that may be provided (if so wished by 
producers) by the State Informational and Analyti cal Centre for Monitoring of External Product 
Markets.  Such assistance provides for help in prepar ation of the documents related to the rationale of 
deviation from the indicative export price, submitted by  the producer or exporter to the Ministry of 
Economy. 
Question 70 
What happens if the enterprise wants to export neither at the minimum indicative export price 
nor at the price recommended to it by the government experts who pay it a visit? WT/ACC/UKR/126 
Page 30  
 
 Answer:
  
Minimal indicative export prices are not recommended to producers and exporters by experts of 
governmental authorities. Experts do not pay visits to enterprises. In the event an enterprise is 
unwilling to export for the minimal indicative export pr ice and in the absence of additional documents 
confirming the rationale of the deviation, the enterp rise will not be able to export its products for the 
price lower than the established minimal indicative export level. 
Question 71 
What are the enterprise's legal rights in such a situation?  Does it have the right to export 
neither at the minimum indicative export pric e nor at the price recommended to it by the 
government experts?  Does it have the right to continue exporting when it refuses to provide 
"additional documents" to "confirm the validity of such deviation"?  Does it have the right to 
continue exporting when it refuses visits from government experts who come to tell it the price 
at which it should sell its exports?  Does it have the right to refuse visits from government 
experts in relation to the price of its exports, period? 
Answer:   
Ukraine exercises only minimal indicative export pri ces established by an order of the Ministry of 
Economy on a monthly basis.  Experts of governmental authorities are not allowed to recommend or otherwise influence the price-making of private ente rprises, including exporters.  In addition, experts 
of governmental authorities do not attend enterprises, nor  fix the price for an enterprise, for which it is 
obliged to perform its exports. In the event of re fusal to submit additional documents to confirm the 
rationale of a deviation from the minimal indicativ e export price the enterprise will not be able to 
export its products. 
Question 72 
The replies to the questions we have asked on mi nimum indicative export prices clearly indicate 
that Ukraine places the onus on the intending exporter to justify to the government why it 
should sell its products at a price that does not coincide with an applicable minimum indicative 
export price, and that if the government do es not agree those products cannot be exported. 
We want to see this point explicitly acknowledged in the report. It is our expectation that Ukraine's minimum indi cative export price system will be eliminated 
by the date of accession in order to achieve conf ormity with the prohibition on measures of this 
nature under Article XI:1 of GATT 1994.  We ask that Ukraine provide de tails of the steps it 
will take to eliminate this system and to cea se applying minimum "indicative" export prices. 
We request that all minimum indicative export prices be notified to the table of export 
restrictions we have requested in Question 52 of WT/ACC/UKR/120, along with dates for their elimination. 
Answer:
  
Ukraine took notice of this wish.  WT/ACC/UKR/126 
 Page 31 
 
 
 Question 73 
The reply to Question 69 of WT/ACC/UKR/120 indicates that the grant of an exemption from 
export duties to an enterprise is contingent on th e production of the product concerned.  This is 
a TRIM in the meaning of paragraph 2(c) of the Annex to the Agreement on Trade-Related 
Investment Measures. 
Please indicate all products subject to export  duties where the grant of an exemption from 
export duties to an enterprise is contingent on  the enterprise being an agricultural producer. 
We would appreciate advice from Ukraine on whether it will achieve conformity with its future 
obligations under the TRIMS Agreement by the date  of accession through the elimination of all 
such TRIMS or through the elimination of a ll export duties in relation to which such 
exemptions are granted. 
Answer:   
According to the Law of Ukraine No. 180/96-VR of 7 May 1996 "On the Export Duty for Livestock 
and Leather Raw Materials" agricu ltural producers – legal entities are allowed to perform exports of 
the products specified in the Law with no export duty, except for young stock of bovine animals with 
the weight not more than 350 kg and leather ra w materials (codes in the UCP FEA 4101, 4102, 
4103 90 00 00), if such products are of own production. 
Question 74 
Regarding the replies to Questions 70-72 of WT/ACC/UKR/120, we look forward to Ukraine's 
schedule for the elimination of all export duties. 
Answer:   
As from the date of its accession to the WTO,  Ukraine undertakes to reduce the export duty on 
livestock: 
- 0102; 0102900500; 0102902100; 0102902900; 0102904100; 0102904900; 0102905100; 
0102905900; 0102906100; 0102906900; 0102907100; 0102907900; 0102909000 "Live bovine animals"; and 
- 0104; 0104101000; 0104103000; 0104108000 "Live sheep and goats".  
Raw furskins: - 4101 "Whole raw hides and skins or leather of equine animals"; 
- 4102 "Raw sheep leather or lamb hides"; and 
- 4103900000 "Others". 
As from the date of its accession to the WTO, Ukra ine commits to reduce a duty rate for export of 
sunflower (1206), flax (1204009000) and only rye (1207999900).  
As from the date of its accession to the WTO, Ukra ine commits to reduce an export duty for ferrous 
waste and scrap (7204 Ferrous waste and scrap ; re-melting scrap ingots of iron or steel). 
Prior to the date of its accession to the WTO, Uk raine commits to eliminate a prohibition on the 
exportation of non-ferrous scrap and substitute such  prohibition with setting an export duty rate. 
Possible value of export tax is being estimat ed. The final value will be provided later. WT/ACC/UKR/126 
Page 32  
 
 Question 75 
In the reply to Question 140 of WT/ACC/UKR/118, Ukraine agreed to revi se export licence fees 
to reflect the actual cost of services rendered, but  has not stated when this would be completed. 
Please indicate how export licence fees will br ought into conformity with Article VIII of 
GATT 1994 by the date of accession. 
Answer:
  
With the purpose of revision of payments for export licenses to make them reflect actual expenses for 
the services provided, the Ministry of Economy and European Integration developed a Draft 
Resolution of the Cabinet of Ministers of Ukrain e "On Amending the Resolution of the Cabinet of 
Ministers of Ukraine No. 312 of 5 November 1991" with  regard to the establishment of the size of the 
state duty to the state budget for issuing the export licence under the non-automatic licensing 
treatment.  
Presently the said Draft Resolution of the Cabinet of Ministers is signed by the Minister of Economy 
and European Integration of Ukra ine and is being approved of by other ministries. The amendments 
are to be adopted in the near future. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS - Technical barriers to trade Question 76 We refer to an inconsistency between paragra phs 169 and 170 of WT/ACC/SPEC/UKR/5/Rev.1.  
In paragraph 169 is it stated that:  " … The complete alignment of technical regulations and standards with WTO norms could not be complete d by the date of accession.  Ukraine would 
therefore ask for an implementation period and submit a work program spelling out the steps 
remaining to be taken, and the required timefram e, to achieve full conformity.  In paragraph 
170 is it stated that:  "[The representative of Ukraine stated that, upon accession to the WTO, Ukraine would comply with all the provisions of  the Agreement on Technical Barriers to Trade 
without recourse to any transitional arrangements.  The Working Party took note of this 
commitment.]" 
We request that Ukraine apply all provision s of the TBT Agreement upon accession, not seek 
transitional arrangements and accept the proposed commitment. 
Answer:
  
Ukraine could commit to having its legislation in compliance with the substantive provisions of the 
Agreement on Technical Barriers to Trade, including the procedural and transparency requirements, 
from the date of accession.  All existing technical regulations (mandatory requirements) would be 
brought in line with the TBT Agreement.  This will be implemented through a program to revision of all existing technical regulations and elimination of those, which exceeds international requirements 
and cannot be justified under Article  2.4 of the TBT Agreement.  In addition, technical regulations 
will be revised to assess whether the circumstances or the objectives giving rise to their adoption no 
longer exist or if the changed circumstances or obj ectives can be addressed in a less trade-restrictive 
manner.  Technical regulations that do not comply with Article 3 of the TBT Agreement would also 
be eliminated. The complete alignment of technical  regulations and standards with WTO norms could 
not be completed by the date of accession.  Ukrain e would therefore ask for an implementation period  WT/ACC/UKR/126 
 Page 33 
 
 
 and submit a work program spelling out the steps re maining to be taken, and the required timeframe, 
to achieve full conformity. Ukraine intends to im plement this program over a period of X years. 
The work program has been prepared and submitted to the Ministries for approval. 
Ukraine commits itself to be in full conformity with all the substantive provisions of the TBT 
Agreement by the time of its accession, except for that part of its work program that may by that time 
not yet be fully implemented, but that  would be  implemented within the agreed period. Ukraine 
observes that paragraph 170 of the Draft Report, wh ich includes a text of commitments, has remained 
with square brackets. 
- Drawback of duty 
Question 77 
We welcome information Ukraine has provided in response to Question 82 of 
WT/ACC/UKR/120.  We note refe rence to the application of this  duty-drawback (give-and-take 
system) to raw cane sugar under the import tariff quota.  We seek clarification of the following: 
- confirmation there are no limits on the amount  of raw cane sugar that can be imported 
under the give-and-take arrangement, a nd that volume imported does not count 
towards fulfilment of Ukraine's tariff-rate quota while still being undergoing refining 
prior to re-export;  
- confirmation that refined sugar from raw cane sugar imported under this scheme also 
must be re-exported from Ukraine; and 
- duties applied in calculating the amount to be  entered on the promissory note mentioned 
in Ukraine's response to Question 82. 
Answer:   
Give-and-take system isn't applie d under the import tariff quota.  
This is to confirm that the s ugar produced from the raw cane sugar imported under the give-and-take 
scheme must be re-exported in its full volume fro m Ukraine in accordance with the provisions of the 
current legislation of Ukraine.  It seems to us there is certain misunderstanding with the terms or 
notions, in particular drawbacks and mechanisms  we apply to outward processing (give-and-take 
system). Could you please describe us the system  or cases when the duty-drawback is used?  
- Agricultural policies 
Question 78 We reiterate our request that a further revision to the Working Party Report reflect the view of 
some members that Ukraine would need to adop t a recent and representative base period as a 
basis for appropriate commitments as per the requirements of WT/ACC/4. 
Answer:
  
According to the WTO practices countries in the course of negotiation have a certain liberty in 
selecting the "base" period.  The reference to the choice of the "recent representative period" as "base" 
is not stated in writing in the WTO Multilateral Agreement on Agriculture.  Ukraine presumes it is 
inconsistent with the fundamental WTO principle of transparency.  WT/ACC/UKR/126 
Page 34  
 
 Information on the level of support in 2000-2002 was provided upon inquiry of member states as 
monitoring of support programs during the years following the base period. Additionally, in the Position Materials on the Scope of State Support Nece ssary for the Realization of the Strategy of 
Ukraine's Agriculture Development in Annex 11 to the document WT/ACC/UKR/110/Add.1 Ukraine 
provided rationale of its choice of 1994-1996 as base period and clai med unacceptable the change of 
the period to the last according to the calendar.  
We hereby ask Members to take into account the ar guments provided in this document that highlights 
the problems of agriculture in Ukraine, and to support the position of Ukraine as a transition economy 
at the multilateral negotiation on domestic support of agriculture. 
Ukraine also hopes that once the final consensu s is reached at the new round of multilateral 
negotiation on agriculture support the WTO will take  into consideration peculiarities of transition 
economies similar to Ukraine, which is to provide  grounds for invariability of its positions with 
respect to the base period. 
Question 79 
We appreciate the reply provided to the Question 80 of WT/ACC/UKR/120 on special 
agricultural safeguards and ask that the wordin g accepted by Ukraine be transposed to the 
report. 
Answer:
  
Ukraine will transfer the said statement to the Draft Report 
 - Sugar policies 
Question 80 
We note the reply to question 1 of WT/ACC/U KR/120, and would be interested in further 
clarification of the A, B and C Quotas. 
There is a reference to "sugar owners" who are subject to obligations.  What is a "sugar 
owner"?  Is such a "sugar owner" required to  be a processor of sugar?  Please clarify. 
Answer:   
"Sugar owners" are business entities that operate at the sugar market. 
Question 81 
Are sugar owners required to not export sugar under the C Quota unless the A and B Quotas 
are filled?  Or are sugar owners allowed to export  sugar if they are able, even when the A and B 
Quotas are not filled? 
Answer:   
No, there is no such a requirement. Quota C is sugar produced in excess of quotas A and B and is 
destined for sale by its owners exclusively outsi de the country.  Quotas B and C has never been 
established by the government, quota A has never been fulfilled.    WT/ACC/UKR/126 
 Page 35 
 
 
 Question 82 
We note that C Quota sugar is required to be ex ported and that sugar that would otherwise be 
required to be sold in the domestic market or  exported may be exported under the B Quota.  
We note that, consistent with recent WTO juri sprudence, exports of sugar not benefiting 
directly from export subsidies, may nevertheless be  categorised as subsidised exports within the 
meaning of Article 9.1(c) of the Agreement on Agriculture, in circumstances where the sugar in 
question is being exported at or below costs of production.  In light of this jurisprudence, we seek clarification of: 
- prices at which Quota C sugar has been sold  on the market, and how this compares to 
its cost of production; 
Answer:
  
The government has never established Quota C. S ee answer to question 53 of the Document 
WT/ACC/UKR/120.  
- clarification as to how Ukrainian producers are able to finance the ongoing export of 
their sugar at prices below the cost of th e production – in other words, are export 
subsidies provided to enable this export; 
Answer:   
The current legislation does not provide for export subsidies for sugar. 
- if domestic sugar is produced at costs in ex cess of the world market price, is that sugar 
redirected back into the domestic market. 
Answer:   
Ukraine exports sugar produced of raw cane suga r brought into Ukraine through the give-and-take 
scheme.  The minimal price requirement does not apply to  this sugar, thus it is cheaper than that sold 
at the domestic market. 
Question 83 
As for sugar exported under the B Quota, we also seek clarification as to the prices at which this 
sugar is exported and production costs.   
Please indicate the international agreements in existence under which exports of B Quota sugar 
have taken place. 
Please provide details of the exports of B Qu ota sugar which have taken place under those 
agreements, including the quantities and pri ce for each year, and production cost. 
Answer:   
According to the Law of Ukraine "On State Regulati on of Production and Sale of Sugar" the sale of 
sugar under quota B is performed for price determined  by international agreements.  Since the year 
1997 Ukraine did not export  refined sugar under international agreements.  WT/ACC/UKR/126 
Page 36  
 
 Question 84 
We are interested in more information on how th e quotas affect the operations of individual 
sugar processors and beet producers. 
Are sugar processors subject to specific purch ase quotas for sugar beets as well as specific 
production quotas for sugar?  Or are processors f ree to decide the quantity of sugar beets they 
purchase in order to meet their production quotas? 
Answer:
  
Establishment of quotas on production and sale of s ugar is aimed at ensuring cost efficiency of 
domestic sugar beets production.  Sugar refineries are allowed to take decisions as to the volumes of 
purchasing of sugar beet for prices not lowe r than the minimal established level. 
Question 85 Regarding the reply to Question 5 of WT/ACC/UKR/20, what happens when a processor's beet 
purchases exceed the quantity required to meet it s production quota?  Is the processor required 
to pay the mandatory minimum pr ice for beets in this case?  Or does the processor pay a 
negotiated price for beets which may be below th e mandatory minimum price?  If so, is there 
any additional regulation of the prices fo r beets below the manda tory minimum price? 
Answer:
 
There are no additional statutory requirements as to beet prices.  During the period of the law effect 
purchasing volumes of sugar beets by refineries has never exceeded the volumes required for 
fulfilling the sugar production quota, and the mini mal price is effective only within quota A. 
Question 86 
Are production quotas for sugar transferable be tween processors during the processing season?  
If so, please describe how quota is transferred.  Can a processor be required to surrender quota 
in the event that it is clear that it cannot be filled?  
Answer:   
Refineries are not allowed to transfer suga r production quotas to one another on their own. 
Question 87 We are interested in receiving more informatio n on how the quotas affect the sugar processors' 
use and purchases of raw cane sugar. 
Is the purchase of raw cane sugar by a processor prohibited or otherwise restricted (including 
subject to penalties) when beets are available fo r purchase and the processor's production quota 
has not been filled? 
Answer:
  
No, there are none.  WT/ACC/UKR/126 
 Page 37 
 
 
 Question 88 
Is the refining and/or sale of cane origin sugar by a processor prohibited or otherwise restricted 
(including subject to penalties) when beets are available for processing and the processor's 
production quota has not been filled? 
Answer:   
No, there are none. 
Question 89 
We seek clarification of the reply to Questio n 7 of WT/ACC/UKR/120 concerning import quotas 
for raw cane sugar. 
In what sugar years were import quotas used.  In these years, what quantities of raw cane sugar 
were allowed to be imported under the quota? 
When raw cane sugar was imported under these quota s, at what times of the year was the quota 
used? 
On what date did Cabinet Resolution No. 1046 rel ating to the setting of import quotas in 1994 
lose it legal force? 
Please indicate any laws and legal acts under wh ich import quotas may have been used?  Which 
ones are still in force? 
Answer:   
Tariff quotas on importation of raw cane sugar were applied in the following years: 
Years Volumes of Quota Under Relevant 
Provisions of Legislation 
(Thousands of tonnes) Volumes of Actual Importation 
(Thousands of tonnes) 
1998 300 96 
1999 60 217 
2000 260 229 
2001 260 260 
2003 560 380 
2004 125 125 
 
Tariff quotas were applied during those periods when no sugar was refined from domestically 
produced sugar beets. 
Resolution No. 1046 on introducing import quota in 1994 became invalid as of 1 January 1995. Ukrainian government drafted no normative act s regulating introduction of tariff quotas for 
importation of raw cane sugar in 2005.  There is not a single normative act regulating introduction of 
tariff quotas that is valid for 2005. WT/ACC/UKR/126 
Page 38  
 
 Question 90 
The reply to Question 8 of WT/ACC/UKR/120 seems to suggest that import quotas have been 
applied, but not used. 
Is this interpretation correct?  If there is a difference between applying and using import 
quotas, please state what it is. 
Answer:
  
That is correct, the actual volumes of raw sugar imported in some years were smaller than the 
volumes set by legislation. 
Question 91 
We note Ukraine's reply to Question 8 of WT /ACC/UKR/120, indicating that it has never 
applied minimum import prices for raw cane sugar. 
Answer:   
Minimal import prices for raw cane sugar were not applied. 
Question 92 
We would like to see this noted in the report. 
Answer:   
The above mentioned information w ill be reflected in the report. 
Question 93 
Please provide legal citations for provisions go verning the possible use of minimum import 
prices for raw cane sugar at any time from 2000 on wards (even if they have not been actually 
used), and describe those provisions in the report. 
Have minimum import prices for sugar ever been  applied?  Please provide details, including 
relevant legal citations, and include them in the report.  What was the scope of application of this measure?  All sugar of HS heading 17.01?   Or refined sugar of HS subheading 1701.99? 
Bearing in mind the reply to the preceding question, have minimum import prices ever been 
applied to raw cane sugar along with other ca tegories of sugar (as distinct from minimum 
import prices exclusively for raw cane sugar)?  If so, please provide details. 
Answer:
  
Minimal import prices for sugar and raw cane sugar were not applied. 
Question 94 
We refer to Ukraine's response in paragraph 37 of WT/ACC/SPEC/UKR/5/Rev.1 to concerns 
on minimum prices raised in paragraph 36.   Pl ease respond to each of the following issues:  WT/ACC/UKR/126 
 Page 39 
 
 
 The minimum price for sugar appears to apply to refined sugar of cane origin as well as to 
refined sugar of beet origin, and as a consequence cane origin and beet origin sugar are internally purchased and sold on the same terms.   Is this correct?   Please provide the relevant 
the legal citation for this requirement. 
Answer:
  
We appreciate the opportunity to clarify our prev ious response.  Sugar produced from the imported 
raw cane sugar is sold by applying the price that w as formed at the domestic market at the moment of 
sale.  
Question 95 
We note that the cost of production of sugar  domestically refined from raw cane sugar is 
considerably below that of domestic beet origin sugar, largely due to an external price of raw 
cane sugar favourable to refiners.  In the light  of such a cost difference, please explain why 
should a requirement for cane origin sugar to be purchased and sold in the domestic market at 
the same price as beet origin sugar not be co nsidered to afford protection to the domestic 
production of sugar beets? 
Answer:   
The current legislation does not provide legal regulations for such requirement. 
Question 96 
We understand that, despite heavy regulation of the sugar sector including through the 
operation of the quota system, foreign refined su gar is imported into Ukraine, including some 
beet origin sugar. 
Please indicate how many tonnes of refined su gar were imported during the sugar year just 
ended (1 September 2003 to 31 August 2004) in total and by country of origin.  
 WT/ACC/UKR/126 
Page 40 Answer:   
Import of White Sugar to Ukraine over the market year period 1 September 2003, through 31 August 2004  
tonnes 
2003 2004 
Country Sept Oct Nov Dec Jan Feb Marc h April May June July August Market 
Year 
2003/2004 
Georgia  3,100 1,800 3,900 3,363 1,300   2,500     15,963 
Lithuania 
       11,700 3,600 2,900 5,100 2,500  25,800 
Kazakhstan 
  100   1,000  1,500 1,500 300  1,000  5,400 
Poland 
   875 4,573 300 3000 4,500      13,248 
Others 
   7 11         18 
Total 
 3,100 1,900 4,782 7,947 2,600 3000 17,700 7,600 3,200 5,100 3,500 0 60,429  
  WT/ACC/UKR/126 
 Page 41 
 
 
 Question 97 
Please provide the unit import price (c.i.f. basis)  for this sugar for each country of origin. 
Answer:   
The average value of one unit of refined importe d sugar according to the statistical data of  
Derzhkomstat of Ukraine ( с.i.f. basis) in 2003/04 marketing year makes: Georgia - US$ 350 per 
tonne, Kazakhstan – US$ 348 per tonne, Lithuania – US$ 249 per tonne, Poland – US$ 230 per tonne  
(countries imported on the general conditions, it means that importer has paid import duty in the value 
of € 300 per tonne and VAT). 
Question 98 
Are internal purchases and sales of such import ed refined sugar subject to the same minimum 
prices that apply to internal purchases and sales of domestic beet origin sugar and domestically 
refined cane origin sugar? 
Answer:   
The mechanism of minimal domestic prices doesn't cover imported sugar.  The imported refined sugar 
is sold by applying the domestic market prices.  The volumes of imported refined sugar fail to exceed 
3 per cent of the volumes of the domestically o ffered sugar produced from the domestically grown 
sugar beets.  Such volumes cannot possibly influence th e levels of domestic market prices.  This is the 
main reason why the minimal prices (or, in other words, levels of market price support) for sugar 
produced from domestic raw products  determine the levels of sugar prices at the domestic market. 
Question 99 
Are there restrictions of any kind on the internal purchase or sale of imported refined sugar? 
Answer:   
No, there aren't any. 
Question 100 
Are there quotas on the importation of refined sugar?  Do any other restrictions apply (e.g., 
origin, production/consumption balance of the exporting country, price requirements)? 
Answer:   
No, there aren't any. 
Question 101 
Do any of the exporting countries give reciprocal commitments of any kind to Ukraine for any 
product in exchange for the importation into Ukraine of refined sugar originating in their 
territories?  If so, please provide details. 
Answer:   
No, they don't. WT/ACC/UKR/126 
Page 42  
 
 Question 102 
Clearly, given globally-prevalent cost structures, the importation of refined beet origin sugar is 
unlikely to be able to occur on a sustained basi s without domestic support or export subsidies 
being provided by the country of origin. 
When does Ukraine expect to have a system for anti-dumping and countervailing measures in 
place upon accession that will comply  with all applicable WTO rules? 
Answer:
  
After accession to the WTO. 
Question 103 
Would Ukraine be prepared to use anti-dumpi ng or countervailing measures to address sugar 
entering its territory that is produced be low normal cost?  From any possible source? 
Answer:   
Yes, Ukraine is ready. 
Question 104 
Does Ukraine intend to exempt any major trading partner from the application of anti-dumping 
or countervailing measures?  If this is the case, how would it defend itself from importation or 
the threat of importation of dumped (including subsidized) sugar? 
Answer:   
No, Ukraine doesn't have this intention. 
Question 105 
We would be interested to know whether Ukraine has imported or exported beet sugar at any 
time from 2000 onwards.  
Please provide details.  (We understand that sm all amounts of raw beet sugar are traded 
internationally, and would like to know whether Uk raine participates in such trade and if so on 
what scale and on what basis.) 
Answer:   
Ukraine stopped exporting sugar beets since 1997.  As to the imports, that information can be found in 
the Table incorporated to th e response to Questions 96. 
Question 106 
We would be also interested to know whether there is any toll refining of Ukrainian beets in 
neighbouring countries. 
Please provide details.  WT/ACC/UKR/126 
 Page 43 
 
 
 Answer:   
Ukraine has no information about th e existence of any schemes of refining the give-and-take raw 
sugar produced in Ukraine in the neighbouring countries. 
Question 107 
We refer to Ukraine's response in paragraph 184 of WT/ACC/SPEC/UKR/5/Rev.1 to concerns 
on TRIMs in relation to sugar raised in paragr aph 182.  We also note advice provided of the 
pending abolition of the requirement for the ma ndatory exportation of sugar produced from 
imported raw materials. 
Please include details of plans, or steps already taken, to abolish this requirement in a revised 
paragraph 184. 
We ask that it be noted in a revised paragrap h 182 that this measure is inconsistent with 
Article III:4 of GATT 1994 and Article 2.1 of the TRIMs Agreement. 
We reserve our position on other aspects of sugar sector TRIMs pending clarification of factual 
issues elsewhere. 
Answer:  
The domestic sugar production and sale are regulated  according to the provisions of the TRIMs 
Agreement, which is mentioned in Paragraph 184. The requirement of obligatory exportation of sugar 
produced of the imported raw materials contradicts the Article XI:I of GATT 1994.  Ukraine can not 
agree that this measure contradicts the provisions of Article 2.1 of TRIMs. 
 
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