RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/UKR/5/Rev.2 
2 March 2005 
 (05-0899) 
Working Party on the 
Accession of Ukraine  
 
 
  
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF UKRAINE 
TO THE WORLD TRADE ORGANIZATION 
 
Revision
  WT/ACC/SPEC/UKR/5/Rev.2 
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TABLE OF CONTENTS  
  
I.
 INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................2  
II. ECONOMIC POLICIES..........................................................................................................3  
- Monetary and Fiscal Policy..................................................................................................... .3 
- Foreign Exchange and Payments ............................................................................................5  
- Investment Regime.............................................................................................................. ......7  
- State Ownership and Privatization .........................................................................................9  
- Pricing Policies ............................................................................................................... .........13  
- Competition Policy............................................................................................................. .....16  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................18  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................22  
- Trading Rights ................................................................................................................. .......22  
A. IMPORT REGULATION......................................................................................................27  
- Ordinary cust oms duties ........................................................................................................ 27 
- Other duties and charges levied on imports but not on domestic production...................28  
- Tariff rate quotas, tariff exemptions.....................................................................................28  
- Fees and charges for services rendered.................................................................................32  
- Application of Internal Taxes on Imports ............................................................................35  
-  Excise Taxes.................................................................................................................. ..........35  
- VAT............................................................................................................................ ..............37  
- Quantitative import restrictions, incl uding prohibitions, quotas and import 
licensing systems .............................................................................................................. .......40  
- Customs valuation.............................................................................................................. .....45  
- Rules of origin ................................................................................................................ .........47  
- Other customs formalities ...................................................................................................... 50 
- Preshipment inspection ......................................................................................................... .51 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................51  
B. EXPORT REGULATIONS ...................................................................................................54  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........54  
- Export rest rictions ............................................................................................................ ......59  
- Export subsidies ............................................................................................................... .......63  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................64  
- Industrial policy, including subsidies....................................................................................64  WT/ACC/SPEC/UKR/5/Rev.2 
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-
 Technical barriers to trade, sanita ry and phytosanitary measures ...................................68  
- Sanitary and Phytosanitary Measures ..................................................................................74  
- Trade-related investment measures ......................................................................................77  
- State-trading entities......................................................................................................... ......79  
- Free zones, special economic areas........................................................................................81  
- Government-mandated counter-trade and barter...............................................................86  
- Government procurement......................................................................................................87  
- Trade in ci vil aircraft........................................................................................................ ......89  
- Transit........................................................................................................................ ..............90  
- Agricultural policies.......................................................................................................... ......92  
(a) Imports........................................................................................................................ .............92  
(b)  Exports........................................................................................................................ .............92  
(c) Internal policies.............................................................................................................. .........92  
- Textiles regime ................................................................................................................ ........97  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................98  
- General........................................................................................................................ .............98  
(a) Industrial property protection...............................................................................................98  
(b) Responsible agencies for policy formulation and implementation .....................................99  
(c) Participation in international intellectual property agreements ........................................99  
(d) Application of national and MFN treatment to foreign nationals....................................100  
(e) Fees and taxes................................................................................................................. .......101  
2. Substantive Standards of Protection, Including Procedures for the Acquisition 
and Maintenance of Intellectual Property Rights..............................................................101  
(a) Copyright and related rights................................................................................................101  
(b) Trademarks, including  service marks.................................................................................102  
(c) Geographical indications, including appellations of origin...............................................103  
(d) Industrial designs............................................................................................................. .....105  
(e) Patents........................................................................................................................ ............105  
(f) Plant variety protection....................................................................................................... .106 
(g) Layout designs of integrated circuits ..................................................................................107  
(h) Requirements on undisclosed information, including trade secrets and test data..........107  
3. Measures to Control Abuse of Intellectual Property Rights.............................................108  
4. Enforcement .................................................................................................................... ......108  
(a)  General........................................................................................................................ ...........108  
(b) Civil judicial procedures and remedies...............................................................................110  
(c) Provisional measures ........................................................................................................... .111 
(d) Administrative procedures and remedies...........................................................................112   WT/ACC/SPEC/UKR/5/Rev.2 
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(e) Special border measures.......................................................................................................1 12 
(f) Criminal procedures............................................................................................................ .114 
- Policies affecting trade in services .......................................................................................115  
- Transparency ................................................................................................................... .....120  
- Publication of information on trade....................................................................................120  
- Notifications.................................................................................................................. .........122  
- Trade Agreements............................................................................................................... ..122  
- CONCLUSIONS ...................................................................................................................1 26 
ANNEX 1 ........................................................................................................................ ....................128  
 
  WT/ACC/SPEC/UKR/5/Rev.2 
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 I. INTRODUCTION 
1. The Government of Ukraine applied for accessi on to the General Agreement on Tariffs and 
Trade (GATT 1947) on 30 November 1993.  At  its meeting on 17 December 1993, the GATT 1947 
Council of Representatives established a Working Party to examine the application of the Government 
of Ukraine to accede to the General Agreement under Article XXXIII of the General Agreement.  In a 
communication dated 20 December 1994 (PC/W/30) , the Government of Ukraine applied for 
accession to the Agreement Establishing the World Trade Organization (WTO) pursuant to 
Article XII of the WTO Agreement.  Following Uk raine's application and having regard to the 
Decision adopted by the WTO General Council on 31 January 1995 (WT/GC/M/1), the Working 
Party on the Accession of Ukraine to the GATT 1947 was transformed into a WTO Accession 
Working Party.  The terms of reference and memb ership of the Working Party are reproduced in 
document WT/ACC/UKR/20/[Rev.23]. 
2. The Working Party met on 27-28 February and 11-12 December 1995; 24-25 June 1996; 
6-7 May and 24-25 November 1997; and 10 June 1998 under the Chairmanship of Mr. A. L. Stoler (United States), and 12 July 2000; 13-14 June 2001; 25-26 June 2002; 25 February 2003 and 
27 October 2003; 26-27 April and 20 Septembe r 2004 and [...] under the Chairmanship of 
H.E. Mr. Sergio Marchi (Canada).  In addition,  the Working Party held several informal sessions 
between the formal meetings to clarify positions [and work on the Draft Report of the Working Party]. 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Ukraine (document L/7499), questions and comments submitted by 
Members on the foreign trade regime of Ukrain e together with the responses thereto and other 
information provided by the Ukrainian author ities (documents WT/ACC/UKR/1, WT/ACC/UKR/3 
to 7, WT/ACC/UKR/16, WT/ACC/UKR/22 to 25, WT/ACC/UKR/41, WT/ACC/UKR/50, 
WT/ACC/UKR/53, WT/ACC/UKR/59, WT/ACC/UKR/ 91, WT/ACC/UKR/110 and Addenda 1 to 4 
and Corrigenda 1 and 2, WT/ACC/UKR/110/Add. 1/Corr.1, WT/ACC/UKR/114, WT/ACC/UKR/116, 
WT/ACC/UKR/117 and Add.1, WT/ACC/UKR/ 118, WT/ACC/UKR/119, WT/ACC/UKR/120, 
WT/ACC/UKR/125, WT/ACC/UKR/126 and [...]).  Enacted  laws and draft legislation relevant to 
Ukraine's accession to the WTO have been enumer ated in documents WT/ACC/UKR/111/Add.1 and 
Rev.1, WT/ACC/UKR/106/Rev.1 and WT/ACC/UKR/ 93/Rev.4.  Legislation submitted to the 
Working Party by Ukraine during the accession process is listed in Annex 1. WT/ACC/SPEC/UKR/5/Rev.2 
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 INTRODUCTORY STATEMENTS 
4. The representative of Ukraine said that accession to  the WTO was an integral part of overall 
domestic economic reform and a major component of  Ukraine's economic policy.  Implementation of 
the WTO Agreements would make Ukraine a reliable,  predictable partner for the entire international 
community.  The President of Ukraine had instructed  his Government to speed up all technical work 
related to the accession negotiations, and Ukra ine was committed to harmonizing its national 
legislation with the rules and requirements of th e WTO.  He noted that Ukraine had enacted a 
Customs Code and a Land Code, established an eff ective regime for the protection of intellectual 
property, and advanced significantly the harmonizati on of standardization and certification systems, 
sanitary and phytosanitary requirements, and government procurement in accordance with WTO 
principles and rules.  His Government attached prio rity to building and maintaining a broad consensus 
to support continued economic reform and market liberalization, instrumental in raising living 
standards and the development of Ukraine's unique industrial, agricultural, scientific, technological, 
intellectual and cultural capacity and potential. 
5. The Ukrainian economy had performed well recen tly and was expected to improve further 
through a combination of accelerated investment, small and medium sized enterprise development, 
and capital shifting from the informal to the formal sectors of the economy.  A tax reform, involving lower tax rates and abolition of privileges and subsid ies, would be undertaken to support this trend.  
Private consumption was expanding due to increas ing personal income.  On 15 August 2001, the 
President of Ukraine had ratified Decree No. 637, approving a Strategy for Overcoming Poverty, and 
the strategy was implemented through an integrated  program involving elements such as job creation 
in the private sector, reductions in wage arrears, and higher pensions.   
6. Members of the WTO welcomed Ukraine's application for accession to the WTO, noting this 
as a very important step for the economic devel opment of Ukraine and its integration into the 
multilateral trading system.  Ukraine's ambitious trade reform program, improvements in the legal 
structure and the broad-based push for economic refo rms were encouraging first steps.  However, 
WTO Membership would require substa ntial reforms and efforts to bring the foreign trade regime into 
full conformity with the rules and requirement s of the WTO.  Members pledged to work 
constructively with Ukraine to complete th e accession negotiations on appropriate terms and 
conditions at the earliest possible date.   
7. The Working Party reviewed the economic policie s and the foreign trade regime of Ukraine 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by the Members of the Working Party on the various aspects  of the foreign trade regime of Ukraine, and on  WT/ACC/SPEC/UKR/5/Rev.2 
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 the terms and conditions of Ukraine's accession to the WTO are summarized hereunder in paragraphs 
8 to [366]. 
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 
8. The representative of Ukraine said that the Na tional Bank of Ukraine fulfilled the functions 
assigned to it under Article 99 of the Constitution and the Law "On the National Bank of Ukraine" 
No. XIV of 20 May 1999.  The principal objective of the National Bank was to ensure monetary 
stability, thereby minimizing macroeconomic risk to promote investment and sustainable growth in 
external debt.  While monitoring the monetary base indicators closely, the performance of monetary 
and credit policy was also evaluated against m ovements in domestic price indices and currency 
exchange rates.  The National Bank met the demand  for cash through interventions in the foreign 
exchange market and increased refinancing of ba nks, using measures such as weekly short and 
medium-term tenders, extension of overnight credit to banks and establishing the National Bank as the 
lender of last resort.  The National Bank had e xpanded the list of assets accepted as collateral to 
secure the Bank's loans, but banks were also able to obtain credit without presenting collateral.  The 
money supply had also expanded as the National Bank had lowered its  discount rate and decreased the 
reserve requirements of banks.  The level of m onetization of the Ukrainian economy was increasing, 
and a steady rise in the money multiplier was seen as a sign of the improved functioning of the money 
and credit markets in Ukraine.  In 2003, Ukraine' s [real] GDP had increased by 9.3 per cent while the 
annual rate of inflation had been  contained at 8.2 per cent.   
9. His Government's economic programme for 2004 aimed at fostering innovation and 
investment-led growth.  The programme envisaged tax cuts to stimulate the private sector, budget 
reform, closer integration with the world economy, financially stronger enterprises, the elimination of 
payment crises, and income growth for the popul ation.  Ukraine was introducing a single treasury 
account for budgets at all levels.  The Cabinet of  Ministers and the National Bank had developed a 
draft Order "On the Coordination of Activities of the Ministry of Finance of Ukraine, the State Treasury of Ukraine and the National Bank of Ukrain e" to improve the coordi nation of monetary and 
fiscal policies, and allow the National Bank to regul ate the monetary supply by ensuring the necessary 
liquidity of the banking system and, as a final result, stabilize the national currency.  The Ministry of 
Finance, the National Bank, and the State Treasury pl anned to set up a mechanism for the exchange of 
information and, assisted by an inter-ministerial consultative group including the State Customs Service and the State Property Fund of Ukraine, to  respond appropriately to the impact of external 
factors on Ukraine's money and credit markets. WT/ACC/SPEC/UKR/5/Rev.2 
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 10. The Supreme Rada, the Supreme Rada of the Au tonomous Republic of Crimea, and Radas at 
the level of townships, villages and cities/towns decided on the intr oduction and abolition of taxes and 
mandatory payments (i.e. fees and duties) as well  as the granting of tax privileges pursuant to 
Ukraine's Constitution and the Law "On Taxation System" No. 1251–XII of 25 June 1991, as 
amended, and other Ukrainian laws in the area of ta xation.  The tax laws established the tax rates, as 
well as the procedures for the collection of taxes a nd fees and any privileges granted.  Natural and 
legal persons registered with the State tax service and other State bodies in accordance with 
established legislation for the purpose of paying taxes and other dues.   
11. State taxes and fees (mandatory payments) levi ed in Ukraine included (i) value added tax, 
levied at a rate of 20 per cent (reductions to 17 per cent in 2005 and to 15 per cent in 2006 under 
consideration); (ii) excise duty – imposed on a list of taxable goods – and established on the basis of 
volume and/or units of the good sold; (iii) enterprise profit tax – including dividends paid to the State 
budget by non-corporate State, governmental or communal companies – levied at 25 per cent; (iv) personal income tax of 13 per cent, effective begi nning in 2004 and rising to 15 per cent in 2007; (v) 
customs duty; (vi) State duty; (vii) real estate tax; (viii) land tax; (ix) rental payments; (x) a tax on 
owners of motor vehicles and other self-propelled m achines and mechanisms; (xi) a craft tax; (xii) a 
fee on geological exploration works; (xiii) special use of natural resources fee; (xiv) environmental 
pollution fee; (xv) obligatory State pension insurance; (xvi) activity licence payments; (xvii) agricultural tax; (xviii) a fee for the development of viticulture, gardening and hop-growing; (xix) the 
unified fee for customs clearance; (xx) a fee for th e use of radio-frequencies; (xxi) a fee for the Fund 
for Guaranteeing Deposits of Natural Persons; (xxii) an extra charge on electricity and heating; and 
(xxiii) a fee on performances.  In addition to a comm unal tax, a tax on advertising was levied at the 
local level.  Various fees had also been establis hed at the local level including fees on resorts; 
gambling (horse racing); permissions to conduct local  auctions, competitive sales and lotteries, the 
establishment of trade or service outlets, the use of local signs and symbols, and permissions to shoot 
motion pictures and TV programs; a market fee; and fees on housing, parking and dog ownership.  
The representative of Ukraine confirmed that this was the definitive list of taxes and fees levied at the 
State and local levels.       
12. The tax system was based on the principles of equality, non-discrimination, stability and 
predictability.  Several laws had been passed in  2002 and 2003 to reform the system and reduce the 
tax burden, notably by introducing lower rates of personal income tax, as well as corporate tax 
amendments.  The taxation regime was gradually switching from being a purely fiscal instrument to 
become an effective lever of State economic policy.   The strategic objectives of the tax reform were 
set out in a message from the President to the Supr eme Rada entitled "European Choice.  Conceptual  WT/ACC/SPEC/UKR/5/Rev.2 
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 foundations for the strategy of Ukraine's economic and social development for the years 2002-2011", 
based on a programme established by the Cabinet of  Ministers.  Further reforms would focus on tax 
reduction and balancing of the tax burden, si mplification of the tax system, and improved 
administration, enforcement and control.  The inci dence of taxes and mandatory payments should be 
limited, particularly for small businesses.  Additio nal measures, including tax cuts and simplifications, 
would be taken in 2004 to reduce the size of the "black" economy.   
13. Eventually, he expected Ukraine' s tax system to include features such as (i) corporate tax no 
higher than 20 per cent; (ii) an individual property tax, and possibly a single social fee; (iii) unified 
standards for the reporting of financial, statistic al and accounting information for all enterprises 
irrespective of ownership; (iv) improved deprecia tion rules; (v) gradual harmonization of accounting 
and taxation bookkeeping and inventory, stage-by -stage reduction and fu rther elimination of 
economically unjustifiable benefits; and (vi) simp lified systems of taxation, accounting and reporting 
rules for small businesses.   
- Foreign Exchange and Payments 
14. The representative of Ukraine said that his au thorities had introduced the national currency 
hryvnia (UAH) - replacing the karbovanets at a ra te of 100,000:1 - in September 1996.  The hryvnia, 
which had initially been pegged informally to the U.S. dollar, had subsequently been allowed to 
fluctuate within established bands.  Ukraine had move d to a floating rate regime in February 2000.  
The National Bank aimed at exchange rate stability , and would intervene in the foreign exchange 
market to smooth short-term fluctuations in the va lue of the hryvnia.  The foreign currency reserves of 
the National Bank as of 1 January 2004 equalled a pproximately 2.6 months of imports of goods and 
services.   
15. He added that Ukraine had accepted the oblig ations of Article VIII of the Articles of 
Agreement of the International Monetary Fund on 24 September 1996, and thus maintained an 
exchange system free of restrictions on payments and transfers for current international transactions, 
as defined in Article XXX of the Agreement of the IM F.  In response to the global financial crisis in 
1997 and 1998, the Governing Board of the Na tional Bank had approved Resolution No. 349 "On 
Mandatory Selling of Proceeds in Foreign Currency for the Benefit of Residents" on 
4 September 1998.  The surrender requirement had b een imposed to ensure a minimum guaranteed 
supply of foreign exchange in support of the hryv nia, and to ease speculative pressures on the national 
currency.   WT/ACC/SPEC/UKR/5/Rev.2 
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 16. A Member expressed concerns about the consistency of such a restriction in view of Ukraine's 
obligations ensuing from the acceptance of Article  VIII of the IMF Articles of Agreement and 
enquired whether there had been any plans to eliminat e it.  In response, the representative of Ukraine 
stated that the surrender requirement remained a valuable and legitimate tool for dealing with 
speculative attacks on the national currency – in  his view consistent with Ukraine's IMF 
commitments – and added that there were no immediate plans to eliminate this measure.     
17. Foreign exchange could be purchased in the dom estic inter-bank market and, if used in 
payment of imports, appropriate doc uments proving the legality of the transaction for which foreign 
exchange was to be purchased should be filed with an authorized bank.  Appropriate documentation in 
this respect meant a copy of the contract with th e non-resident or any other document considered a 
contract pursuant to Ukrainian law; a cargo customs declaration for goods imported into Ukraine; an 
act or any other document proving the rendering of services, performance of work, or importation of 
intellectual property rights; the letter of credit,  promissory note or other documentation of the 
payment; and – for purchases exceeding the equivale nt of US$10,000 – a reference paper (statement) 
from the State tax administration, indicating that the resident was a registered taxpayer, the amount of 
foreign exchange purchased, as well as the bank account  into which the purchased funds were to be 
transferred.  Pursuant to Article 2 of the Law "On Procedure of Payments in Foreign Currency" 
No. 185 of 22 September 1994, importe rs were required to obtain an individual licence from the 
National Bank for import prepayments for goods (w orks, services) of delivery terms exceeding 90 
days.  This provision was aimed at preventing the illegal outflow of capital, while imposing a degree 
of financial discipline on resident importers. 
18. Purchases of foreign exchange for capital account operations were only allowed to cover 
specific commitments of residents towards non-reside nts.  Thus, a resident guaranteeing for the debt 
of a non-resident towards another non-resident would not be able to purchase foreign exchange in the 
inter-bank market should the guarant ee be invoked.  In this case, the resident would need to use 
his/her own foreign exchange resources, or borro w the necessary foreign exchange.  A resident 
guarantor could nevertheless purchase foreign excha nge to repay debt owed by non-residents to 
residents.  These procedures had been introduced in order to exercise effective control over capital 
outflows, thus maintaining macroeconomic stability and tackling the problem of money laundering.  
Once the capital outflows issue had been resolved effectively, these measures would eventually be 
removed.  Permanent representative offices of non-resi dent legal entities partially engaged in business 
activities in Ukraine had the right to use thei r current accounts in hryvnia to purchase foreign 
exchange and transfer the funds to the legal entity  whose interests they represented in Ukraine.  
Natural persons were required to use authorized  banks for purchases of foreign exchange exceeding  WT/ACC/SPEC/UKR/5/Rev.2 
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 the equivalent of €10,000 according to Article 6 of Resolution No. 502 of the National Bank "On the 
Instruction on the Procedure of Organization and Ex ecution of Currency Exchange Operations on the 
Territory of Ukraine" of 12 December 2002.   
19. He noted that Article 3 of the Law "On Pr ocedure of Payments in Foreign Currency" 
No. 185/94 of 23 September 1994 (as amended) stipulat ed that residents purchasing foreign exchange 
in pursuance of obligations towards non-residents were required to remit the amount within five 
business days from the date of entry of the purch ase in the resident's foreign currency account.  A 
Member considered this provision contrary to Ar ticle III:4 of the GATT 1994, as well as Article VIII 
of the IMF Articles of Agreement, and sought details  on how this requirement would be eliminated.  
In reply, the representative of Ukraine said that  this provision imposed financial discipline on 
economic agents, prevented irrational use of forei gn exchange, and reduced the scope for destabilizing 
currency speculation.  In his opinion, this provision did not restrict the right of residents to make 
payments to non-residents within the terms set forth in their contracts, and thus did not impose less 
favourable terms for payments of imports than for payments of domestically-produced goods.   
- Investment Regime 
20. The representative of Ukraine said that regula tion of investment was founded on the Law "On 
Investment Activities" No. 1560-XII of 18 January  1991 and the Law "On the Regime of Foreign 
Investment" No. 93/96-BP of 19 March 1996.  Specia lized legislation regulated investment in areas 
such as mineral resources (Law "On Producti on-Sharing Agreements" No. 1039-XIV of 
14 September 1999) and infrastructure (Law "On Concessions for Construc tion and Operation of 
Motorways" No. 1286-XIV of 14 December 1999).  Uk raine had amended its legislation to improve 
the conditions for foreign investment, notabl y through the Law "On removal of taxation 
discrimination against business entities formed on the basis of property and funds of domestic origin" 
No. 1457-III of 17 February 2000, Presidential Decree No. 748/98 "On certain issues of foreign 
investment" of 7 July 1998 (acquisition of State debentures), and the Law "On amendment of certain 
Laws of Ukraine with objective to stimulate i nvestment activities" No. 977-XIV of 15 July 1999 
amending the Law "On value-added tax".  The La w "On ownership of property" No. 697-XII of 
7 February 1991 allowed foreign investors to own property, and State and municipal property could 
be leased for periods up to 50 years under the Law "On Concessions" No. 997-XIV of 16 July 1999.   
21. Concerning investment incentives, he added that only the Law "On Stimulation of 
Automobile Manufacture in Ukraine" No. 535/97-VR  of 19 September 1997 (as amended) had linked 
tax benefits to minimum levels of  investment.  Local content require ments had been eliminated from 
this Law in 2001.  This Law, moreover, had been suspended with the entry into force of the Law "On WT/ACC/SPEC/UKR/5/Rev.2 
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 Development of Ukraine's Automobile Industry" No . 1624-VI of 18 March 2004, except for benefits 
provided to the Closed Joint Stock Companies "Lviv Automobile Plant" and "Zaporizhzhia 
Automobile Plant" as the Cabinet of Ministers ha d already approved the investment programmes of 
these enterprises and the investments had been eff ected prior to 1 January 2004.  The new Law 
contained local content requirements.   
22. The Law "On Investment Activities" stipulated  equal rights and conditions for domestic and 
foreign investors.  The Law "On the Regime of Foreign Investment" addressed specific features of 
foreign investment, including the repatriation of funds  in case of termination (Article 11), remittance 
of income and profits (Article 12) , and the protection of investors' rights.  Foreign investors were non-
resident natural persons or legal entities, which c ould establish wholly-owned companies in Ukraine, 
branch offices, or form joint ventures with Ukrain ian corporations or natural persons.  A company 
with foreign investment was defined as a legal st ructure set up under Ukraine's legislation with 
minimum 10 per cent foreign participation in its stat utory fund. According to Article 19 of the Law, 
companies with foreign investment determined th e conditions under which th eir products were sold 
independently.  The Law "On the Regime of Fore ign Investment" protected foreign investment 
against nationalization.  The Supreme Rada ha d ratified the Convention on the procedure for 
resolution of disputes between States and foreig n persons in March 2000, and Ukraine had signed 
agreements on the encouragement and mutual protec tion of investment with more than 50 countries. 
23. The Law "On the Regime of Foreign Investme nt" (Articles 18 and 24) provided for import 
duty exemptions for contributions to the statutor y fund of companies with foreign investment and 
joint ventures.  The payment of import duty on e quipment imported as foreign investment could be 
deferred for up to 30 calendar days against a promissory note issued by the company, and would not be collected if the property was recorded on the co mpany's balance-sheet within the deferred payment 
period.  Asked about the possibility for foreign comp anies to use promissory notes for the payment of 
VAT, he said that Article 11.5 of the Law "On Value Added Tax" allowed taxpayers to issue 
promissory notes to customs for the amount of the tax obligation.  However this right did not extend 
to the importation of excisable goods nor to agricultu ral goods.  In addition, th e measure did not apply 
to goods imported by enterprises with foreign inv estment.  He added that Article 71 of the Law "On 
the State Budget of Ukraine for 2004" No. 1344-IV of 27 November 2003, as well as Article 62 of the 
Law "On the State Budget of Ukraine for 2005" No . 2285 of 23 December 2004, contained provisions 
prohibiting payments to the budget in non-monetary form – including the use of promissory notes – for both domestic and foreign-owned enterprises.  He  nevertheless stated that, as of the date of 
accession, the regime regulating the use of promissory notes would be non-discriminatory and in 
compliance with Article III of GATT 1994.    WT/ACC/SPEC/UKR/5/Rev.2 
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 24. In order to qualify for the benefits and gua rantees provided by Ukraine's laws, foreign 
investment required registration in accordance with  the procedures laid down in the Cabinet of 
Ministers' Resolution No. 928 on "the Regulation on the procedure for the state registration of foreign 
investment" of 7 August 1996.  Foreign investment could be registered with the Government of the 
Autonomous Republic of Crimea, Oblast state administrations, or the Kiev City and Sevastopol City state administrations within three working days.  The authorities could only refuse registration if the 
documentation was incomplete or if the investment would be contrary to Ukraine's legislation.  
Refusals were communicated in writing and could be appealed to a court.   
25. Noting that foreign investment could be made in any object, except those prohibited by law, 
and that registration of investment could be refused on similar grounds, some Members requested 
Ukraine to describe the nature of prohibited investme nts in more detail and to submit a negative list of 
forbidden investment activities, if such a list existed, to the Working Party.   
26. The representative of Ukraine replied that the Law "On Investment Activities" included a 
general provision (Article 4) prohibiting investment c ontrary to the norms of national legislation such 
as environmental, sanitary and hygienic, radiation, architectural and other rules, or violating the 
interests and rights of citizens, enterprises or the State.  A specific list of prohibited investment 
activities did not exist.  He added that the gene ral provision of the Law "On Investment Activities" 
applied equally to both foreign and domestic investors and confirmed that there was no list of 
prohibited objects/activities that only applied to foreign investors.  Asked for more detailed 
information, he replied that Ukraine would readil y respond to queries regard ing specific investment 
projects.  
- State Ownership and Privatization 
27. The representative of Ukraine said that the regul ation of the privatization process in Ukraine 
was principally founded on the Law "On State Propert y Privatization" No. 2163-XII of 4 March 1992,  
the Law "On State Program of Privatization", th e Commercial Code, the Civil Code, the Law  "On 
Specifics of Privatization in Agricultural Sector", the Law "On the Assessment of Property, Property Rights and Professional Activity in Ukraine", the Law "On the Specifics of Privatization of the 
Objects of Unfinished Construction" and the Law "On the Rent of State and Municipal Property".  
The privatization process had been regulated by su ccessive rounds of State Privatization Programmes 
(SPP), the first Programme being approved by R esolution of the Supreme Rada No. 2545-XII of 
7 July 1992.   The most recent SPP had been adopted for a period of three years by Law No. 1733-III on 18 May 2000.  The Supreme Rada was consider ing a draft State Privatization Programme for 
2004-2006. WT/ACC/SPEC/UKR/5/Rev.2 
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 28. He noted that by early 2003 some 84,000 entiti es had changed ownership since privatization 
begun in Ukraine.  Among them, around 61,000 entiti es had been under collective ownership, while 
more than 22,000 entities had been State-owned.  More than 68,000 entiti es had been privatized 
during 1992-2002, including 11,500 medium and large scale enterprises and 179 large State-owned 
enterprises.  Large enterprises had in many instances been split and s pun off in smaller independent 
units.  A number of hotels and resorts, sanatoriums and other recreational facilities had been 
privatized.   
29. In terms of number of privatized enterprises,  the process had mainly affected wholesale and 
retail trade, including motor vehicle repair and sales  outlets (33,500); personal, collective and public 
services (14,000); and industrial enterprises (8,100).  He added that the industrial enterprises having 
undergone transformations in ownership had account ed for approximately 54 per cent of Ukraine's 
industrial output on 1 October 2002 according to data provided by the State Statistics Committee.  As 
for ongoing programmes, he provided information on privatizations planned in 2003, reproduced in 
Table 1(a).     
Table 1(a):  Privatization of Enterprises in 2003
 
Economic sector Number of enterprises 
with a controlling or 
blocking interest to be 
auctioned or sold in the 
stock market Balance sheet value of 
capital assets 
(UAH  million) Number of employees 
Oil and gas  4 45.94 29,675 
Energy   3 167.10 10,985 
Agriculture  32 329.76 6,662 
Metallurgy  9 3,373.11 70,255 
Machine building and metal-working  49 154,139 96,601 
Aircraft industry  1 20.84 854 
Shipbuilding  2 6.22 6,167 
Communications equipment  4 392.54 4,213 
Chemicals 6 1,947.94 11,510 
Petrochemicals 3 73.86 6,002 
Transportation  27 203.86 6,015 
Total 140 160,700.17 248,939 
 
30. The representative of Ukraine noted that near ly 24,000 privately owned enterprises had been 
established during the years of privatization.  In addition, more than 8,000 enterprises operated as 
joint-stock companies with mixed State and private capital.  Detailed information on these enterprises 
is provided in Table 1(b).    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 11 
 
 
 Table 1(b): Joint-stock enterprises with State- owned and private capital (per 1 November 2004)  
Percentage of private ownership in total capital Industry Total up to 25% 25-50 50-75 75-100 
Power engineering  36 1    
Fuels 18   2  
Ferrous metallurgy 106 3 3 1 7 
Chemicals and petrochemicals 122 8 3 3 7 
Machine building and metal processing 1,414  53 32 61 60 
Woodwork, and pulp and paper industry 224 1  4 4 
Light industry  360 6 5 6 8 
Food industry  975 5 4 32 67 
Transportation  838 15 2 94 45 
Construction  1,187  9 11 23 32 
Other industries  3,469  125 45 249 255 
Total:  8,749  226 105 475  485 
 
31. Some Members requested more information on the areas of economic activity in which State-
owned enterprises still played a significant role, on the relative position of St ate-owned enterprises in 
GDP and trade, as well as on the proportion of privatized enterprises among all the enterprises included in the State Register.  Ukraine was also asked to indicate whether any of these enterprises 
traded on behalf of the State.  Information was also sought on the relative importance and specific 
activities of State-owned enterprises engaged in intern ational trade or competing with exports, notably 
operating in the areas of agriculture and banking.   Ukraine was also asked to provide more 
information on the enterprises to remain under State ownership, indicating whether any plans existed 
for their future privatization.  A Member expressed  concerns that some "privatized" enterprises had 
been transformed into "collective property" unde r the control of regional and local governments and 
requested more information on the latest status of these firms.           
32. In reply, the representative of Ukraine said th at State-owned enterprises were currently active 
in all areas of the economy.  The share of the public  sector in the economy had been estimated at 22.9 
per cent for the first half of 2004, notably in (i) agri culture, hunting and forestry (69.9 per cent); (ii) 
transportation and communication (55.8 per cent); (iii)  industry (26.4 per cent); (iv) health protection 
and social assistance (21.6 per cent); (v) educati on (14.7 per cent); and (vi)  construction (14.0 per 
cent).  A list of major State-owned ente rprises is provided in Table 2.     
 
 
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 12  
 
 Table 2:  Major State-owned en terprises by type of activity
 
Type of industry Number of enterprises Major enterprises 
Aircraft 7 Kyiv State- Owned Plant "AVIANT"; 
Antonov Design Bureau 
Radio electronics and radio technical 8 "KHEMS" (large electrical machinery) 
Shipbuilding 2 "NVKG "Zoria" – "Mas hprojekt" (steam and gas ship 
turbines); 
"Ship-Building Plant named after 61 Komunars" 
(building and repairs of military ships) 
Chemicals 5 Odessa State Port Plant (production, sale, and export 
storage of chemical products – privatization planned to 
begin in 2005) 
Metallurgy 5 [Scientific and Production Combine]; 
"Titanium-Magnesium Combine" 
 
33. He added that more than 1,500 agricultural St ate enterprises, institutions and organizations 
had been privatized by 1 January 2004, including  149 agribusinesses, 204 industrial entities, 17 civil 
engineering companies, 70 design and 52 research and development institutio ns and organizations, 
138 educational establishments, 177 laboratories a nd inspections, 28 standardization centres, 23 
training and experimental farms, and over 500 vete rinary medicine establishments.  [Information on 
other sectors is in preparation and will be submitted at a later stage.] 
34. Objects of national importance would not be s ubject to privatization according to the Law 
"On State Property Privatization" No. 2163-XII of 4 March 1992.  Article 5 of the Law defined the 
objects of national importance in general terms, i. e. property and assets essential for the maintenance 
of Ukraine's sovereignty and the performance of ba sic State functions, defence and national security, 
health and the environment, public utilities, or  objects considered important for the social 
development of Ukraine.  Lists of specific Stat e-owned property not subject to privatization were 
approved by the Supreme Rada upon a proposal of the Cabinet of Ministers.  The Supreme Rada had 
accordingly promulgated the Law "On the List of State Property Assets not Subject to Privatization" 
No. 847-XIV of 7 July 1999.  The list of such ente rprises, organized by oblast, comprised more than 
100 pages of text and included 465 agricultural en tities, notably 131 food processing enterprises, 110 
agricultural enterprises, and 90 units of the join t stock company "Khlib Ukrayiny".  A draft Law 
amending the Law "On the List of State Property Assets not Subject to Privatization" was under 
consideration in the Supreme Rada.  The list of St ate-owned enterprises not subject to privatization 
would accordingly be revised and reduced. 
35. [The representative of Ukraine confirmed that to ensure full transparency and to keep WTO 
members informed of its progress in the reform of its transforming economic and trade regime, 
Ukraine would provide periodic reports to WTO Members on developments in its program of  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 13 
 
 
 privatization along the lines of the information provi ded to the Working Party, and on the other issues 
related to its economic reforms as relevant to its obligations under the WTO Agreement.  The 
Working Party took note of this commitment.]   
- Pricing Policies 
36. The representative of Ukraine said that the Economic (Commercial) Code of Ukraine 
No. 436-IV of 16 January 2003 stipulated that econo mic agents sold their products freely in the 
domestic market at prices determin ed independently or on a contractual basis, and price controls 
would only be applied in cases specified by legislative acts.  Price controls effected by the State had 
been established through the Law "On Prices and Pricing" No. 507-XII of 5 December 1990, and 
Resolutions of the Cabinet of Ministers "On Es tablishment of Powers of the Executive Power 
Authorities and Executive Authorities of City Co uncils Regarding Price (Tariff) Regulations" 
No. 1548 of 25 December 1996, and "On Rules on Stat e Price (Tariff) Regulations for the Products of 
Production and Technical Designation, Consumer 's Goods, Works and Services of Monopolistic 
Formations" No. 135 of 22 February 1995.  The Cabi net of Ministers determined the lists of goods 
and services subject to State regulation of prices a nd tariffs.  The lists are reproduced in Tables 3 
(goods) and 4 (services).   
37. The Cabinet of Ministers had entrusted the price control functions to Derzhtsininspectsia (the 
State Inspectorate on Price Control) pursuant to its  Resolution No. 1819 of 13 December 2000.  The 
State Inspectorate had established local offices in the Autonomous Republic of Crimea, the oblasts, 
Kyiv and in Sevastopol.  The State Inspectorate moni tored the prices and tariffs of goods and services 
in the retail market as well as the prices and tariffs set by central and local authorities, the Council of 
Ministers of the Autonomous Republic of Crimea, and other institutions and organizations.  The 
Cabinet of Ministers had approved the list of goods and services subject to control at the sub-central 
level through Resolution No. 1548 "On the Determina tion of Price Regulation Powers of Agencies of 
Executive Power and Executive Bodies of City Counc ils" of 25 December 1996.  Price regulation 
affected in particular natural resources important  in the determination of prices of other products, 
goods and services of significant social importance a nd thus affecting the livelihood of the low-paid 
and poor, and prices set in monopolistic markets.  Price controls took the form of either prices (tariffs) 
fixed by the State, maximum prices, or limits on the mark-up of the supplier.   
38. Specifically concerning the determination of prices for industrial users of electricity, he said 
that these were established by energy distribution co mpanies in accordance with the "Terms and Rules 
for Effectuation of Entrepreneurial Activity on Dist ribution of Electricity under the Regulated Tariff" 
approved by the National Commission for Regula tion of Electricity, Resolution No. 15/1 of WT/ACC/SPEC/UKR/5/Rev.2 
Page 14  
 
 13 June 1996.  Tariffs were unified for all cons umers, according to voltage class and corrected for 
power losses during transmission, within the territory  of the energy supplier.  Additional detail on the 
method used and an example of the tariff computation is provided in Table 5.   
39. Some Members noted that some of the goods listed in Table 3 were subject to minimum 
prices and sought confirmation whether this require ment was also applied to imported goods.  A 
Member stated that minimum prices for impor ted vodka and other alcohol ic products violated 
Article XI of the GATT 1994.  In addition, the minimum price regulation on domestic beet and 
refined sugar, maintained in parallel with rest rictions on imported raw cane sugar, constituted a 
subsidy to the domestic production of beet sugar a nd refining of local beet sugar in Ukraine, and 
contravened Article III:4 of the GATT 1994 by accord ing considerably less favourable treatment to 
imported raw sugar relative to  its domestic equivalent (beet sugar).   This Member also sought specific 
information on Ukraine's sugar pricing arrangements,  negotiated on preferential terms in the context 
of international agreements.  This Member  requested Ukraine to acknowledge the WTO 
inconsistencies of its minimum price regulations in  relation to sugar and agree to remove them.  A 
Member also noted that the new Law "On State Support of Agriculture in Ukraine" contained 
minimum price provisions that could contravene Article III:9 of GATT 1994 if applied to imports. 
40. The representative of Ukraine replied that mi nimum prices and related procedures had been 
established for vodka and other spirits sold in Ukraine under the Law "On State Regulation of 
Production and Circulation of Ethyl, Cognac and Fruit Alcohol, Alcoholic and Tobacco Products" 
No. 481/95-VR of 19 December 1995, Resolution No. 700 "On Introduction of Minimum Prices for 
Domestic and Imported Vodka and Alcoholic Produc ts" of 21 June 2001, and Order No. 371/168/239 
"On Approval of Procedures for Setting and Applica tion of Prices for Domestic and Imported Vodka 
and Alcoholic Products" of the Ministry of Finance,  the Ministry of Economy and the Ministry of 
Agrarian Policy, of 8 August 2001.  In his view , the minimum prices regime did not contravene the 
provisions of Article XI of the GATT 1994 in this in stance as the minimum prices were applied at the 
wholesale and retail level irrespective of the origin of the products, whether domestically-produced or 
imported.  The purpose of this measure was to  fight illegal production and trade in alcoholic 
beverages in Ukraine.  Minimum prices were not  applied on alcoholic beverages falling within HS 
categories 2203-2207, i.e. beer, wines, fermented beverages or undenatured ethyl alcohol (alcoholic 
strength of 80 per cent or more) or denatured ethyl alcohol and other spirits.   
41. Concerning the internal regulation of the s ugar market, he noted that minimum price 
regulations for sugar beet and refined sugar (s upport prices) had been introduced in 1999 by Law 
No. 758 "On State Regulation of Sugar Production and Sale" of 17 June 1999.  Regarding sugar beet,  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 15 
 
 
 the mandatory minimum purchase price was defined by the minimum price established at the time that 
sale/purchase agreements for sugar beet were si gned, in fulfilment of processors' production quotas 
for refined sugar – A quota for the domestic mark et exclusively; and B quota for exports under 
international contracts.  Concerning refined sugar, the mandatory minimum purchase price was defined by the minimum price established at the ti me that sale/purchase agreements for refined sugar 
were signed in fulfilment of the A quota.  Importe d refined sugar, as well as refined sugar produced 
domestically from imported raw (cane) sugar, were sold domestically at prices determined by the 
market.  The volumes of imported refined sugar and domestically-refined im ported raw sugar were 
insignificant relative to domestic production, and therefore could not influence the domestic market 
price level.  Thus, the domestic market price fo r sugar was effectively determined by the minimum 
price level.  There were no import restrictions or restrictions of any kind on the internal purchase/sale 
of imported refined sugar.  Tabl e 25 contains information on the vol umes of refined sugar imports in 
2003-2004.  Information (data series) on actual pri ces for refined sugar and sugar beet could be 
obtained, against payment, from www.ukrsugar.ki ev.ua and www.agroperspectiva.com.  He added 
that he did not recognize any incons istency with Article III:4 nor with  Article III:5 of the GATT 1994.  
He acknowledged that the minimum pricing of sugar increased the profitability of domestic sugar beet 
production, but held the opinion that the system complied with the provisions on domestic support under Article 21.1, Article 6 and Annex 3 of the Agreement on Agriculture.  He recognized that, as 
for most governmental policy measures applicable  to domestic and imported goods, such domestic 
policy measures – to the extent that these affected prices – could have an impact on the total amount 
of charges levied at the border.  However, he str essed that, as minimum prices were not applied to 
imported raw cane sugar, these had no direct effect on charges levied at the border.  Concerning the 
provisions of the Law "On State Support of Agricultu re in Ukraine", he stated that Ukraine did not 
apply minimum import prices to agricultural products  and would not do so in the future.  Asked 
specifically about minimum import prices for raw cane  sugar, he confirmed that Ukraine had never 
maintained any such regime.   
42. Some Members  cited several recent examples of what  they considered increased State 
intervention in pricing.  Thus, in November 2003, the Government of Ukraine had signed an 
agreement with chemical plants obliging the pro ducers to sell fertilizer to farmers below market 
prices.  On 1 March 2004, the Government and repr esentatives of the largest metallurgical plants had 
signed a Memorandum whereby the metal producers would sell up to 18 per cent of their production 
at a reduced price in the domestic market, allowi ng the remaining 82 per cent to be exported.  The 
Cabinet of Ministers had signed a similar documen t with plants mining iron ore works, coke and 
ferroalloys and supplies of fire-resistant mate rials on 3 March 2004, whereby the enterprises had 
agreed to reduce prices, but only for the volumes ne cessary for metal producers to satisfy the internal WT/ACC/SPEC/UKR/5/Rev.2 
Page 16  
 
 demand.  On 31 March 2004, the Government ha d established a commission on pricing issues in the 
metal industry.  As these price measures had not b een included in Table 3, the representative of 
Ukraine was invited to update the Working Party on th e state of play for these products.  In addition, a 
Member enquired about some of the price measures enumerated in Table 3 – namely concerning glass, and precious metals and stones.  Ukraine was requested to respect fully all WTO provisions related to price controls upon accession, and provide, as necessary, a timetable for the elimination of 
inconsistent practices in the controls of prices and tariffs.   
43. The representative of Ukraine replied that the c ited measures had not been included in Table 3 
as these were short-term measures designed to protect  the domestic market against external shocks 
caused by rising prices in world markets.  The fer tilizer agreement had been applied for the first six 
months of 2004, and measures affecting the mining and metallurgical industries had been in effect 
from 1 April to 1 September 2004.  The commission on pricing issues in the metal industry had been 
dissolved on 1 September 2004 and the pricing a rrangements were no longer in effect.  Concerning 
the price measures affecting glass, he said that the pledged prices for glass pack aging did not apply to 
imported products.  As for precious metals and stones, he noted that the State regulation of prices had 
been revoked by Resolution of the Cabinet of Ministers No. 974 of 18 July 2004.  
44. Asked about price (tariff) controls in the b asic telecommunications sector, the representative 
of Ukraine stated that tariffs on telecommunicati on services were set independently by operators and 
providers, except for tariffs on nation-wide services,  which were subject to State regulation carried 
out by the National Commission for Regulation of Communications.  The Commission had 
discharged its powers on 1 January 2005. 
45. [The representative of Ukraine confirmed that from the date of accession, the Government of 
Ukraine would apply price control measures in a WT O-consistent fashion, and take account of the 
interests of exporting WTO Members as provided for in Article III:9 of the GATT 1994 and in 
Article VIII of the General Agreement on Trade in Se rvices (GATS).  He also confirmed that Ukraine 
published notices of the goods and services subject to St ate price controls and would continue to do so 
after accession.  The Working Party took note of these commitments.]   
- Competition Policy 
46. The representative of Ukraine said that the principle that the State should encourage 
competition, prevent the abuse of monopoly positions , and combat illegal restrictions on competition 
and unfair competition had been laid down in th e 1996 Constitution as well as the Law "On the  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 17 
 
 
 Protection of Economic Competition" No. 2210-III  of 11 December 2001, and the Law "On the 
Protection from Unfair Competition" No. 236/96 of 7 June 1996.   
47. An Antimonopoly Committee had been establis hed to implement Ukraine's competition 
legislation, while the regulation of natural monopolies was the responsibility of the National 
Commission for Regulation of Natural Monopoli es Entities.  The monopolization of markets and 
potential abuse of dominant positions had been addr essed in Ukraine's privatization programmes, and 
many large enterprises had been reorganized, restructur ed, and split up prior to privatization.  Central 
and local authorities monitored, in particular, the formation of prices, unauthorized tax concessions and other privileges granted, and restrictions on the movement of goods within Ukraine.  Natural 
monopolies within energy and communications were  subject to State regulation.  The Law "On 
Telecommunications" No. 1280-IV of 18 November 2003 provided the possibility for any natural and 
legal person resident in Ukraine to operate, service or own telecommunications networks.   
48. Some Members requested more information on the definition of natural monopolies in 
Ukraine and the activities of the Antimonopoly Committ ee.  In reply, the representative of Ukraine 
said that Article 1 of the Law "On Natural Monopolies" No. 1682- ІІІ of 20 April 2000 defined a 
natural monopoly as a market characterized by the absence of competition due to proprietary 
technology and/or economies of scale in the producti on of a good or service with no close substitutes.  
In addition, Article 5 of the Law specified as natu ral monopoly activity pipeline transportation of oil 
and oil products, natural gas and petroleum gases, a nd other substances; the distribution of natural gas 
and petroleum gases; the transmission and distributi on of electric energy; railway services; air traffic 
control; centralized supply of heating, water and th e drainage system; and the rendering of specialized 
services by transport terminals, ports and airports.   
49. Asked about the existence of a timetable fo r the dissolution of natural monopolies, the 
representative of Ukraine replied that "The St ate Program for Reforming and Development of 
Utilities' Economy in 2005-2010" ha d been approved by Law No. 1869 -IV on 24 June 2004.  The 
Program foresaw the introduction of an efficient syst em of State regulation of the activities of natural 
monopolies in the area of water supply and heating,  as well as further dissolution of monopolies 
operating in the utilities sector through the creation of a competitive environment in the market for 
utility services. 
50. The Antimonopoly Committee contributed to the formulation and implementation of 
Ukraine's competition policy, including the monito ring of compliance with competition legislation 
based on equality of legal rights among business entities and protection of the interests of consumers; WT/ACC/SPEC/UKR/5/Rev.2 
Page 18  
 
 monitoring of market concentration, co-operati on among enterprises and the pricing of goods and 
services produced or distributed by natural monopolies; as well as the promotion of fair competition.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
51. The representative of Ukraine said that the Repub lic of Ukraine was a unitary State and the 
Autonomous Republic of Crimea thus  formed an integral part of Ukraine.  The Constitution of 
28 June 1996 proclaimed Ukraine a democratic Stat e, with State power divided among the legislative, 
executive and judicial branches of government (Article 6).   
52. Legislative power was vested in Ukraine's Pa rliament, the Supreme Rada, made up of 450 
deputies elected for four-year terms.  Article 85 of  the Constitution established the principal functions 
of the Supreme Rada, notably to promulgate legisla tion, approve the State budget, determine the main 
directions of foreign and domes tic policy, approve economic polic y programmes and lists of State 
property not subject to privatization, and to establish the basic rules for nationalization of property.  
The Supreme Rada had exclusive powers to determine the basic rules for the e xploitation of Ukraine's 
natural resources, its exclusive economic zone, con tinental shelf and outer space; the organization and 
use of Ukraine's energy, transportation and communi cations systems; the protection of property and 
entrepreneurship; and policies in the areas of an timonopoly and competition,  foreign relations and 
foreign economic activities, and customs.  In add ition to promulgating the State budget, the Supreme 
Rada established the budgeting procedure, the taxa tion system, the rules for Ukraine's financial and 
money markets, Ukraine's national debt in fore ign and domestic currency, and the issue and 
circulation of State securities.   
53. Article 113 of the Constitution stipulated th at the highest body of  executive government 
would be the Cabinet of Ministers headed by the Prime Minister, appointed by the President with the consent of more than half the constitutional numbe r of members of the Supreme Rada.  The Cabinet 
of Ministers - comprising the Prime Minister, the First Vice Prime Minister, three Vice Prime 
Ministers, and Ministers - directed and coordinate d the activities of 17 Ministries and more than 40 
central bodies of executive government, established in accordance with the Decree of the President 
"On Changes in the Structure of Central Government  Authorities" No. 1573/99 of 15 December 1999.  
The Cabinet of Ministers was responsible fo r the development of draft budget laws and 
implementation of the State budget; finance and taxati on policy; investment; pricing policy; as well as 
the management of public property.  The Cabine t of Ministers also supervised foreign economic 
activities and Ukraine's Customs.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 19 
 
 
 54. Section XI of the Constitution and the Law "On Local Self-Government" No. 280/97 of 
21 May 1997 delegated extensive executive functions to local self-government institutions, and local 
State administrations had been established in each  rayon, oblast, and in the cities of Kiev and 
Sevastopol.  The Heads of local administrations were  appointed by the Cabinet of Ministers with the 
approval of the President pursuant to Article 118 of  the Constitution, and were responsible towards 
the superior executive authorities.  Only the Pr esident could dismiss the heads of local State 
administrations.  These administrations were charge d with the implementation of State and regional 
social, economic, environmental and cultural development programmes, as well as the preparation and 
implementation of their local budgets.  However, local governments were financially dependent on 
the executive authorities as budget revenue largely cons isted of national taxes collected within their 
territories and subsidies from the national budget.  Th e determination and collection of local taxes and 
fees was implemented within ceiling rates set by la w.  The Law "On Local Self-Government" did not 
specifically address the issue of subsidies or r estrictions on the movements of goods.  Local 
authorities had been delegated powers with respect to the administration and supervision of border 
trade and coastal commerce, the functioning and opera tion of customs agencies within their territories, 
and, in accordance with assigned responsibilities,  ensuring the implementation of Ukraine's 
international commitments.   
55. [The representative of Ukraine confirmed that sub-central entities had no autonomous 
authority over issues of subsidies, taxation, tr ade policy or any other measures covered by WTO 
provisions.  He confirmed that the provisions of the WTO Agreement, including Ukraine's Protocol of 
Accession, shall be applied uniformly throughout it s customs territory and other territories under its 
control, including in regions engaging in border trad e or frontier traffic, special economic zones, and 
other areas where special regimes for tariffs, taxes and regulations are established.  He added that 
when apprized of a situation where WTO provisions were not being applied or  were applied in a non-
uniform manner, central authorities would act to enforce WTO provisions without requiring affected 
parties to petition through the c ourts.  The Working Party took note of these commitments.] 
[The representative of Ukraine confirmed that the provisions of the WTO Agreement should be 
applied uniformly throughout the Ukrainian customs territory, including in regions engaging in border 
trade or frontier traffic, special economic zones,  and other areas where special regimes for tariffs, 
taxes and regulations were established.  He adde d that, when informed of a situation where WTO 
provisions were not being applied or were applie d in a non-uniform manner, central authorities would 
act to enforce WTO provisions without requiring a ffected parties to petition through the courts.] WT/ACC/SPEC/UKR/5/Rev.2 
Page 20  
 
 56. The judiciary comprised the Constitutional Court a nd courts of general jurisdiction, i.e. local 
courts, appellate courts, higher speci alized courts, and the Supreme Court of Ukraine.  Local general 
courts - established at the level of districts, city di stricts, cities and united city and district courts, as 
well as the military courts of garrisons - tr ied criminal and civil cases as well as (minor) 
administrative offence cases pursuant to paragraph 2 of Article 22 of the Law "On Judiciary in Ukraine" No. 3018-III of 7 February 2002.  Local  economic courts - the economic courts of the 
Autonomous Republic of Crimea, oblasts, Kiev and Sevastopol - tried cases arising from economic 
legal relations and other cases assigned to their juri sdiction by procedural law.  Local administrative 
courts were specialized courts, established at the level of regions (okrug), which tried administrative 
cases connected with legal relations in public (s tate) and local governance (cases of administrative 
jurisdiction), except for cases of  administrative jurisdiction related to military governance, which 
were tried by the military courts.  As far as WT O-related matters were concerned, administrative 
courts dealt with violations of  trade-related payments procedures and violations in the area of 
government export controls.  Appella te courts, which included the appe llate courts of oblasts, Kiev, 
Sevastopol, the Autonomous Republic of Crimea's appe llate court, the appellate courts of military 
regions, the appellate court of Uk raine's Navy, and the Appellate C ourt of Ukraine reviewed appeals 
in accordance with procedural law and tried cases, speci fied by law, as courts of first instance.  The 
higher specialized courts (including the Higher Econom ic Court and the Higher Administrative Court) 
reviewed, by cassation, cases of the appropriate juri sdiction and other cases as provided by procedural 
law.  The Supreme Court of Ukraine, the high est judicial body among the courts of overall 
jurisdiction, reviewed (by cassation) the judgments  of the general courts in cases assigned to its 
jurisdiction by procedural law.   
57. A system of arbitration had been established pur suant to the Law "On the Arbitration Court" 
No. 1142-XII of 4 June 1991.  However, the 1991 Law had been ineffective since 1 June 2002 in 
accordance with Chapter VII (Final and Transiti onal Provisions) of the Law "On Judiciary in 
Ukraine" No. 3018-III of 7 February 2002.   
58. Concerning the status of international trea ties, including the WTO Agreements, in the 
hierarchy of domestic legislation, the representative of  Ukraine said that international treaties in force 
were part of the national legislation of Ukraine pur suant to Article 9 of the Constitution.  Moreover, 
Article 17 of the Law "On International Treaties of  Ukraine" provided that international treaties 
concluded and duly ratified in the form of a law we re part of Ukraine's legislation and would be 
applied pursuant to the procedures specified for provisions of national legislation.  The WTO 
Agreements would accordingly become part of th e domestic legislation upon Ukraine's accession to 
the WTO.  Should an international treaty ratified by  Ukraine and concluded in  the form of a law set  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 21 
 
 
 out rules other than the rules estab lished by Ukrainian law, then the rules of the international treaty 
would prevail.   
59. As for the right of appeal, the representativ e of Ukraine said that Article 55 of the 
Constitution guaranteed citizens the right to challenge in court the decisions, actions or omissions of 
any body of State power or local self-government, its  officials and officers.  Complaints against 
decisions of agencies and officials could be addr essed to higher-level bodies, regulating agencies or 
superior officials with the administration.  Shou ld the outcome be unsatisfactory, the complainant 
could lodge a case with the local commercial court,  i.e. the commercial courts of the Autonomous 
Republic of Crimea, the provincial (oblast) commerci al courts, or the city courts in Kyiv and 
Sevastopol pursuant to the Law "On Judiciary in Ukraine", Articles 21 (Part 2) and 22 (Part 3).  
Commercial courts were specialized courts, functio nally distinct from administrative courts, that 
heard cases arising from commercial legal disputes between business entities in the areas of trade in 
goods, services and the protection of intellectual prope rty rights.  Since March 2003, specialized court 
chambers (collegiums), operating within the commerc ial courts framework, were being set up to hear 
cases related to the protection of intellectual prope rty rights – namely industr ial property, copyright 
and related rights.  However, as with all cases that were heard in commercial courts, the specialized 
chambers on intellectual property had the authorit y to try cases arising solely as a result of legal 
disputes between business entities.  Decisions of th e local commercial courts could be challenged 
before the commercial court of appeal in the respecti ve appellate district and eventually in the Higher 
Commercial Court, whose decisions were final an d binding.  Having exhaus ted all domestic legal 
remedies, appeals could also be brought before in ternational judicial institutions or bodies having 
Ukraine as a member or participant.  He confirmed that administrative decisions related to areas such 
as TBT, SPS, intellectual property rights, licensing, the payment of fees, etc. could be appealed to the 
commercial courts.   
60. The Code on Administrative Violations provide d the right of appeal to the person against 
whom the decision had been taken, or to an inju red party.  Pursuant to Article 288 of the Code, 
(i) decisions of an administrative commission coul d be appealed to the executive committee of the 
competent Rada, or to the rayon, municipal district , city or inter-district court, whose decision would 
be final; (ii) decisions of the executive committee of a village, town or city Rada could be appealed to 
the applicable Rada or to the rayon, municipal dist rict, city or inter-district court, whose decision 
would be final; and (iii) administ rative sanctions imposed by other governmental authorities (and their  
officers) could be appealed to the higher governmental authority (or high-ranking officer) or to the rayon, municipal district, city or inter-district c ourt.  Court decisions in cases involving administrative 
violations were final and could not be appealed except as otherwise provided by the laws.  Appeals WT/ACC/SPEC/UKR/5/Rev.2 
Page 22  
 
 were lodged with the officer or authority having take n the decision, and these were obliged to transfer 
the complaint, together with the case records, to the authority (or officer) empowered to hear it within 
three days.  The resolution in a case involving an ad ministrative violation could also be protested by 
the prosecutor according to Article 290 of the Code.  Fees for the filing of lawsuits, appeals, cassation 
pleas, petitions and the like had been established pursuant to Decree No. 7-93 of the Cabinet of Ministers "On State Duties" of 21 January 1993.  
61. [The representative of Ukraine stated that , from the date of accession, Ukraine would 
implement Article X of the GATT 1994 and the other provisions of the WTO Agreements related to 
the right of appeal.  The Working Pa rty took note of these commitments.] 
[The representative of Ukraine confirmed that from the date of accession Ukraine's laws would 
provide for the right to appeal administrative ru lings on matters subject to WTO provisions to an 
independent tribunal in conformity with WTO obliga tions including, but not limited to, Article X:3(b) 
of the GATT 1994.  The Working Party took note of this commitment.] 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 62. The representative of Ukraine said that the La w "On State Registration of Legal Entities and 
Natural Persons Engaged in Entrep reneurial Activity" of 15 May 20 03 provided for registration of 
business entities with the State Registrar, an offici al located at the executiv e committee of the city 
council or with the district authorities.  The Law ha d entered into force on 1 July 2004.  Legal entities 
and natural persons engaged in en trepreneurial activities were record ed in the Registry of Legal 
Entities and Natural Persons Entrepreneurs.  The la w required the registration of legal entities to be 
effected within three working days of the receipt of the documents requesting State registration.  For 
natural persons the deadline was two working days, and a registration certificate would be issued no 
later than on the following working day.  Foreig n economic activity was not subject to any special 
registration requirements.  Thus, an applicant wish ing to import, export and/or trade should specify 
the intended activity in the scope of business to be registered.   
63. In addition to the registration requirements, Uk raine applied a system of activity licensing  
(Table 6(a)) and a system of licensing on the right to  import (Table 6(b)).  Activity licensing applied 
for nearly 60 goods- and services-related activities ba sed on the Law "On Licensing of Certain Types 
of Economic Activity" No. 1775-III of 1 June 2000, as amended.  Accord ing to Article 2 of this Law, 
activities not specifically enumerated in its Article 9 were not subject to licensing.  The manufacturing  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 23 
 
 
 and sale of ethyl spirit, cognac and fruit alcoho lic drinks and tobacco goods was regulated under 
separate legislation.  The representative of Ukraine did not envisage any reduction in the number of 
goods or services-related activities subject to licensing, as he considered activity licensing a 
regulatory measure maintained to attain legitimate objectives such as the protection of human, animal 
or plant life and health, the environment, public mo rals, national security, or  for prudential regulation 
of the financial sector.  Detaile d information on the scope and ope ration of the activity licensing 
system was provided in document WT/ACC/UKR/110/Add.2, Annex 6. 
64. The Supreme Rada determined the general di rection Ukraine's policy with respect to 
licensing, and approved amendments to the list of  activities subject to licensing based on proposals 
from the Cabinet of Ministers.  The Cabinet of  Ministers and designated licensing authorities (see 
Cabinet of Ministers Resolution No. 1698 "On the Approval of the List of Licensing Authorities" of 
14 November 2000) were responsible  for the implementation and further development of the licensing 
regime.  Economic agents approached the licensing authority with duly completed application forms 
and other required documentation.  An indica tive list of the documen tation and information 
requirements is reproduced in Table 6(d).  Licen ces, issued against payment of UAH 340 (US$64), 
were normally valid for three years or more.  Incomp lete or incorrect applications would be refused.  
However, such applications could be resubmitted after correction or completion, and minor errors 
would in any case not cause the applica tion to be rejected or lead to the imposition of penalties.  The 
reasons for denial of a licence were communicated to  the applicant in writing.  Generally, all activity 
licences for importation could be obtained within ten days. 
65. The legal basis for the regulation of productio n and trade in alcohol and tobacco goods 
included the Law "On State Regulation of the Pr oduction and Trade in Ethyl, Cognac and Fruit 
Spirits, Alcoholic Beverages and Tobacco Goods" No. 481 of 19 December 1995, with changes and 
amendments, and Resolution No. 493 of the Cabi net of Ministers "On Provisional Procedure for 
Issuance of Licenses to Import and Export Ethyl,  Cognac and Fruit Spirits, Alcoholic Beverages and 
Tobacco Goods" of 13 May 1996.  The Ministry of  Economy and European Integration, acting upon 
the consent of the tax authorities, issued separat e licenses for importing and exporting operations.  
The right to be the importer of record was not linked to domestic investment.  Licences (for the 
production and trade in alcohol and tobacco produc ts) were generally available to all economic 
agents, except for licences to import and export et hyl alcohol, cognac and fruit spirits, which were 
issued only to State-owned enterprises or to "speci alized enterprises" (residents) specifically approved 
by the Cabinet of Ministers.  In the case of c ognac spirits, "specialized enterprises" referred to 
enterprises possessing the necessary facilities, equipm ent and expertise for the making of cognac 
spirits.  Foreign enterprises would not be allowed to  import or export cognac spirits.  Licences, issued WT/ACC/SPEC/UKR/5/Rev.2 
Page 24  
 
 by the Ministry of Economy and European Integra tion within ten days of receipt of the required 
documentation (stipulated in Article 15 of the La w No. 481/95), were valid for five years against 
payment of an annual fee of UAH 250,000 (US$47,000) for the importa tion of alcoholic beverages 
and tobacco products; UAH 170,000 (US$32,000) for the importation of cognac spirits; UAH 85,000 
(US$16,000) for the exportation of cognac spirits ; and UAH 3,000 (US$560) for the exportation of 
other alcoholic beverages and tobacco products.  He considered the relatively high annual fee of UAH 
250,000 (US$47,000) for the importa tion of alcoholic beverages and tobacco products to be 
justifiable, as these products had a high profit  margin and the licences were imposed on a non-
discriminatory basis to both domestic and foreign producers and traders.  An enterprise holding a 
licence to manufacture, sell (wholesale) and export ethyl alcohol, cognac and fruit spirits would be exempt from the export licence fee for its own production of spirits sold abroad, but this provision 
was not applied at present as the fee was levied on such exporters.   
66. Some Members stated that Ukraine appeared to be using its activity licensing system to 
restrict the importation of alcohol in favour of domestic producers and distributors, which would be 
inconsistent with Article XI of the GATT 1994.  A Member noted that foreign enterprises were not 
allowed to import or export cognac spirits and asked the representative of Ukraine to provide 
additional justification regarding this issue.  Th e representative of Ukraine replied that Ukraine did 
not apply restrictions on alcoholic beverages, incl uding on the importation of alcoholic products.  In 
particular, no additional import licence, other th an an activity licence, was necessary for the 
importation of alcoholic beverages (not includi ng ethyl alcohol, cognac and fruit spirits).   
67. Concerning importation and exportation of optical media equipment and discs, he noted that 
the Ministry of Economy and European Integratio n had established a procedure for the issuance of 
activity licences pursuant to its Order No. 244 of 8 August 2002, registered with the Ministry of 
Justice of Ukraine, Order No. 704/6992, of 23 Augu st 2002.  Access to the special identification 
codes (SID-codes) was a necessary requirement to obtain a licence, and the licence holder was also 
required to notify the Ministry of ev ery consignment imported or exported. 
68. A Member asked the representative of Ukraine to elaborate on the rationale for activity 
licensing requirements for the importation of the above-mentioned optical media equipment and discs, 
as well as for the importation of holographic protect ion elements, and cryptosystems and means for 
cryptographic protection (Table 6(a)).  The represen tative of Ukraine replied that activity licensing for 
the importation of the cited produc ts was required to ensure protection against deceptive practices and 
for the protection of intellectual property rights.   WT/ACC/SPEC/UKR/5/Rev.2 
 Page 25 
 
 
 69. Importation of narcotics was governed by the Law "On Turnover of Narcotics, Psychotropic 
Substances, Their Analogs and Precursors" No. 60/ 95-VR of 15 February 1995 and the Resolution of 
the Cabinet of Ministers "On the Approval of the Pr ocedure for Issuance of Certificates to Import into 
Ukraine and to Export from Ukraine of Narco tics, Psychotropic Substances and Precursors" of 
3 February 1997.  A certificate (separate permit) to import or export these items was issued by the 
Committee on Control Over Narcotics, attached to th e Ministry of Health Protection, in agreement 
with the Security Service of Ukraine.   
70. The representative of Ukraine said that licence a pplications for the production of medicines, 
and wholesale and retail trade in medicines were submitted to the State Service of Medicines and Articles of Medical Purpose.  Licence holders were required to observe the provisions of the Economic (Commercial) Code of Uk raine and the Law "On Ensuring of  Sanitary and Epidemiological 
Well-being of Population", as well as qualification a nd other special requirements stipulated in the 
licence.  Only medicines registered in Ukraine, and carrying a quality certificate issued by the manufacturer, were allowed in wholesale and retail trad e.  The registration of a medicine was valid for 
five years, subsequent use required re-registra tion.  Registration fees for medicines had been 
established by the Cabinet of Ministers through its Resolution No. 1422 "On the Approval of the 
Procedure for State Registration (Re-registration) of Medicines and Fees for State Registration (Re-registration) of a Medicine" of September 2000, as changed and amended by Resolution No. 678 of 
21 June 2001.  Registration fees amounted to €1,000 for each medical form, €100 for each next dose 
and €100 for each next package of a medicine; and 50 per cent of the mentioned fees for re-
registration.  For registration and re-registration of radioactive medicine, diagnostic means and simple 
or complex (halenic) preparations of plant medi cal raw materials the fees were half of those 
mentioned above.  Fees for registration and re-regi stration of medicine supplied in bulk, including 
medicine packed in Ukraine from bulk supply, am ounted to €25 for each medical form and €25 for 
each next package of a medicine; and for substan ces (active and auxiliary matters) the fee amounted 
to €25 for each item.  In addition to the activity  licensing, wholesale and retail trade outlets were 
subject to State accreditation, and individuals di rectly engaged in produc tion, wholesale and retail 
trade were required to possess the necessary prof essional qualifications.  No additional activity 
licence was required for the importation of medicines. 
71. Asked to detail the reasons for the differentia tion of registration fees for medicines, the 
representative of Ukraine added that the registrati on fees did not include the cost of pharmacological 
or additional expertise, which was a financial matter between th e applicant and the specialized 
institution performing the service.  In his view, the relatively high level of the registration fee for WT/ACC/SPEC/UKR/5/Rev.2 
Page 26  
 
 medicines did not act as a trade barrier, as evidenced  by the steady increase of imports over the years 
2002-2004. 
72. Licensing of activities related to the productio n of pesticides and agro-chemicals, and 
wholesale and retail trade in such products, w as based on the Law "On Pesticides and Agro-
Chemicals" No. 86-95/VR of 2 March 1995, a joint Order of the State Comm ittee for the Issues of 
Regulatory Policy and Entrepreneurship and the Mini stry of Industry "On the Approval of Licensing 
Terms and Conditions for Carrying out Business Activities on Production of Pesticides and Agro-
Chemicals, Wholesale and Retail Trade in P esticides and Agro-Chemicals" No. 40/70 of 
22 February 2001, and the Law "On Amendments to Some Laws of Ukraine regarding Pesticides and 
Agricultural Chemicals" No. 1628-IV of 18 March 2004 .  The Ministry of Indu stry issued licences for 
the production, wholesale and retail trade in pesticid es and agro-chemicals against a fee of UAH 255.  
In addition, importation, manufacturing and marketi ng of pesticides and agro-chemicals required prior 
registration - valid for up to ten years - of the produc ts in Ukraine.  The fees for State registration and 
re-registration of pesticides and agrochemicals are enumerated in Table 7.  In exceptional 
circumstances, the State Interdepartmental Commis sion on the Issues of Testing and Registration of 
Plant Protection Means and Growth Regulators could issue an import and usage permit for 
unregistered pesticides and agro-chemicals, provided documentation could testify to their use in the 
country of origin.  No additional activity licence was required for the importation of pesticides and 
agro-chemicals. 
73. The representative of Ukraine confirmed that no restrictions existed on the right of individuals 
or firms to import and export goods, other than the requirements applicable to goods subject to 
activity licensing.   
74. [The representative of Ukraine said that from the date of accession the Government of 
Ukraine would ensure that its laws  and regulations relating to the ri ght to trade in goods and all fees, 
charges or taxes levied on such rights would be in full conformity with WTO obligations, including 
Articles VIII:I(a), XI:1, and III:2 and 4 of the GA TT 1994 and that it would implement such laws and 
regulations in full conformity with these obligat ions.  The Working Party took note of these 
commitments.]   
 
  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 27 
 
 
 A. IMPORT REGULATION 
- Ordinary customs duties  
75. The representative of Ukraine said that import du ties were levied on the basis of the Law "On 
the Customs Tariff of Ukraine" No. 2371-III of 5 April 2001, as amended.  The Law, which 
consolidated all previous tariff regulations and reser ved the right to make tariff changes exclusively 
for the Supreme Rada, had covered a ll tariffs applied since July 2001.  Imports from trading partners 
holding MFN status were assessed at the "privileged"  rate of import duty, while imports from other 
non-preferential sources were assessed at the "com mon" rate of import duty.  The common rate of 
import duty, which could be up to 2-10 times highe r than the privileged rate, was applied to goods 
originating in 81 countries, mostly developing countries.  Ukraine had no Generalized System of Preferences (GSP) scheme.  Upon accession, Ukraine would apply the "privileged" (MFN) rate of 
import duty to all goods originating from WTO Me mbers, in accordance with Article I of GATT 
1994.  The nomenclature in Ukraine's Customs Ta riff reflected the Ukrainian Foreign Economic 
Activity Classification of Goods, which was based  on the 1996 version of the Harmonized System 
(HS) nomenclature and the Combined Nomenclature  of the European Communities.  Ukraine planned 
to switch to the 2002 version of the Harmonize d System upon accession to the WTO.  Asked about 
providing a concordance table for the conversion of  Ukraine's tariff commitments to HS 2002, the 
representative of Ukraine replied that the Law amen ding the Law "On the Customs Tariff of Ukraine" 
was being drafted. 
76. The current Customs Tariff comprised approxima tely 11,000 tariff lines.  Most tariffs were 
levied at ad valorem  rates, but 1,765 tariff line items were subj ect to specific rates of duty.  Further 
details on the current applied tariffs are presented in Table 8.   
Table 8:  Import duties (privileged rates) levied on goods 
 
and other items imported into Ukraine's territory  
Ukrainian applied customs tariff 
Import duty rate (%) 0 0-5 5-10 10-15 15-20 20-25 more 
than 25 specific 
rate Total 
number of tariff lines 1, 795 3,871 1,804 658 359 434 292 1,765 10,978 
total number of lines 
(%) 16.35 35.26 16.43 5.99 3. 27 3.95 2.66 16.08 100 
The maximum of the import duty rate is: 
for items of groups 1-24: 50 % (of which 0.4% are higher than the 25 % rate  
for items of groups 25-97: 50 % (of whic h 0.11% are higher than the 25 % rate) 
average arithmetic rate of the applied custom tariff  (%) 10.49     
average weighted rate of the applied custom tariff (%) 5.64     
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 28  
 
 77. A Member was concerned about the discrimin atory potential of product descriptions in 
Ukraine's tariff nomenclature based on geographical or igin.  This Member ask ed Ukraine to describe 
in detail the criteria used by Ukraine's customs authorities in deciding whether or not imported 
products fell to national tariff lines where the produc t coverage of the tariff lines was based on 
geographical origin.  Ukraine was also asked to pr ovide import statistics for tariff lines that included 
details on country of origin.  In response, th e representative of Ukraine replied that customs 
authorities relied on the documents submitted by the importer, namely the certificate of origin of 
goods.  He stated that the determination of country  of origin was based on criteria established by the 
Customs Code in accordance with international practice. 
78. Ukraine undertook bilateral market access ne gotiations on goods with members of the 
Working Party.  The results of these negotiations are contained in the Schedule of Concessions and 
Commitments on Goods (document WT/ACC/UK R/.../Add.1 [to be completed]).   
- Other duties and charges levied on im ports but not on domestic production 
79. The representative of Ukraine said that imported petroleum products were subjected to a fee 
of €0.01 per kg, earmarked for the Pension Fund.  Th e fee was levied at the time of customs clearance 
in accordance with Resolution No. 1460 of the Cabi net of Ministers of 18 September 1998 and Law 
No. 1344 of 27 November 2003.  According to Reso lution No. 1995 of the Cabinet of Ministers of 
24 December 2003 the fee had been scheduled to be abolished from 1 January 2005.  However, 
pursuant to the Law of Ukraine "On the State Budge t of Ukraine for 2005" No. 2285 of 23 December 
2004, a one year extension – until 1 January 2006 – had been adopted to address budgetary concerns.  
The representative of Ukraine stated  that the fee would be abolishe d as soon as the budgetary situation 
would allow to do so, but in any case no later than the date of Ukraine's accession to the WTO.   
80. The representative of Ukraine stated that the a pplication of "other duties and charges", other 
than the ordinary customs duties and fees and char ges for services rendered, would be in accordance 
with WTO provisions from the date of accession.  He  further confirmed that Ukraine would not list 
any "other duties and charges" in its Schedul e of Concessions and Commitments on Goods under 
Article II:(b) of the GATT 1994, binding such ch arges at "zero" from the date of accession.  The 
Working Party took note of this commitment.   
- Tariff rate quotas, tariff exemptions 
81. The representative of Ukraine said that the La w "On the Single Customs Tariff" provided for 
exemptions from duties, duty rate reductions, or the establishment of tariff rate quotas for the  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 29 
 
 
 importation of goods and other items.  In addition, the Customs Tariff also specified tariff preferences 
for goods originating in countries which had formed a customs union or free trade area with Ukraine, 
as well as for border trade.  Detailed informati on specifying some 24 categories of duty exempt 
imports was provided in document WT/ACC/UK R/118, Annex 1 and included re-exports and 
temporary exports; damaged goods; cu rrency and securities; items for official and private use of 
organizations and officials enjoying duty-free priv ileges in accordance with in ternational agreements 
and Ukrainian law; goods imported for disaster relief; imports for priority innovation projects; 
specific imports in connection with production-sh aring contracts; goods for the production of 
ammunition and certain armoured combat vehicles and parts; materials for the publishing industry; 
materials, equipment and components for the constr uction of aircraft as well as for the shipbuilding 
industry; safety equipment and components for the coal mining industry; and pharmaceutical products 
and compounds not manufactured in Ukraine.   
82. A Member requested a detailed explanation from Ukraine concerning the provision to 
establish quotas for preferential importation of goods  and other items and, in particular, its 
consistency with GATT provisions in cluding those contained in Articles I, III, VIII, XI, XIII, and 
Article 4 of the Agreement on Agriculture. 
83. A Member noted that Ukraine had applied a tariff rate quota on one  product – sugar – in 
2003, and requested a detailed description of the tariff rate quota regime applied by Ukraine.   
84. In reply, the representative of Ukraine said th at Ukraine had opened a tariff rate quota for 
imports of raw cane sugar (HS Code 1701.11) of  125,000 tons until 15 September 2004 with a 
specific import duty of €30 per ton pursuant to the Law "On State Budget For 2004".  This was a tariff rate quota with no quantitative restriction.  Out- of-quota imports were subject to 50 per cent import 
duty, minimum €300 per ton.  There were no norma tive acts introducing tariff rate quotas for imports 
of raw cane sugar in 2005.  In addition, Law No. 1691 of 20 April 2004 authorized a tariff rate quota 
for clear glass bottles size 0.33-1.00 litre (HS Code 7010.91 21 00) fo r 2004-2005.  In-quota imports 
were subject to zero duty, while 10 per cent import duty was levied on above-quota imports.  The laws authorizing tariff rate quotas for raw cane su gar and glass bottles were temporary.  Further 
details on the application of tariff rate quotas for raw cane sugar are provided in Table 9. 
 
Table 9: Tariff rate quotas for the import of raw cane sugar in Ukraine (1998 – 2004)
 
Year Established quota (tons) Actual imports (tons) 
1998 300,000 96,000 WT/ACC/SPEC/UKR/5/Rev.2 
Page 30  
 
 1999 60,000 217,000 
2000 260,000 229,000 
2001 260,000 260,000 
2003 560,000 380,000 
2004 125,000 125,000 
 
85. The tariff rate quota for raw cane sugar was auct ioned.  The auctions were organized by 
authorized commodity exchanges under the superv ision of an Interdepartmental Committee.  The 
Minister of Economy and European Integration i ssued import licenses valid until 15 September of the 
current year to the successful bidders, and the St ate Customs Service reported the volume of licensed 
imports monthly to the Ministry of Economy and European Integration and to the Ministry of 
Agrarian Policy.  The Committee and the authori zed commodity exchanges published the quantity 
offered for sale, the terms of admission, and the place and date of the auction in two national newspapers seven days before the auction.  The Committee should receive the applications, 
accompanied by a notarized copy of the registration certificate of the legal entity or entrepreneur, no 
later than three days before the auction date.  The Committee would announce the list of participants 
the day before the auction, and minimum two particip ants were needed for the auction to be valid.  
Participants were required to pay an accreditatio n fee and an auction duty to the authorized 
commodity exchange, and transfer in advance the es tablished minimum price of one lot to a special 
account at the State Treasury.  In 2003, the starting price had been set at €600,000 per lot (10,000 
tons).  Successful bidders settled the difference betw een the price of the acquired lots and the advance 
payment with the State Treasury within three days after the closure of the trading session.  Purchased 
lots could not be resold.  No applicant was aut horized to buy more than 50 per cent of the import 
volume, and 20 per cent of the tariff rate quota was reserved for new entrants.  In 2003, the Supreme 
Rada had authorized tariff rate quotas totalling 560, 000 tons of raw cane sugar - 200,000 tons with a 
specific import duty of €60 per ton, and an a dditional 360,000 tons at €6 import duty per ton.  
86. Some Members stated that the current allocati on system for tariff rate quotas – in particular 
the auctioning method, including its starting price provisions – was inconsistent with WTO rules.  A 
Member also noted that this measure had not been reflected in Ukraine's latest goods offer.  Ukraine 
was also requested to provide the legal instrument s pertaining to the establishment and administration 
of tariff rate quotas. 
87.   In reply, the representative of Ukraine said that upon accession to the WTO Ukraine would 
modify the system of tariff rate quota alloca tion for raw sugar, as described in document 
WT/ACC/UKR/110/Add.1.  In addition, he stated that Ukraine would not use auctioning for the 
allocation of raw sugar from the date of accession.  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 31 
 
 
 88. Responding to a specific question, he stated th at Ukraine was not considering legislation to 
introduce a tariff rate quota on poultry products.  In r esponse to specific concerns raised by a Member, 
he also stated that Ukraine was not currently applying tariff rate  quotas on imports of cognac and had 
not applied such quotas in 2003. 
89. [A Member raised concerns over the use of auctioning as a method of allocating tariff quota.  
In the view of this Member, auction prices re presented additional impos ts on amounts imported under 
the quota that would be inconsistent with tari ff commitments established under Article II of GATT 
1994 and Article 4 of the Agriculture Agreemen t where the total imposts on those amounts were 
raised to levels that exceed the in-quota bound ra te.  As well as being a dditional imposts on imported 
amounts, the auction prices concerned also represented minimum import prices to purchasers of products that enter under the quota where they placed a floor under the prices payable by those 
purchasers for imports and accordingly afforded additional protection to domestic production, 
inconsistently with Article XI of GATT 1994 and Artic le 4 of the Agriculture Agreement.  Moreover, 
the terms and conditions of importation of a product s ubject to auctioning could not be fully known in 
advance and could therefore not meet appropriate standards of transparency and predictability under 
Article X of GATT 1994 and Article 4 of the Agricu lture Agreement.  In addition, where a starting 
price was used under a normal auctioning method, the starting price would 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 concerne d also raised concerns over any non-automatic 
licensing associated with the allocation or other ad ministration of tariff quota that would have trade-
restrictive or -distortive effects on imports additi onal to those occasioned by the quantity-limited in-
quota rate 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.  
90. The representative of Ukraine said that from th e 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, Article 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 o ccasioned by a quantity-limited in-quota rate and an 
out-of-quota rate and would take ac count of the need to issue any licenses in economic quantities.  
Any arrangements applied would be administered a nd applied in a uniform, impartial, reasonable, 
transparent, predictable and fair manner.  Ukra ine would introduce a process for consultation with 
trading partners, importers and e xporters prior to the amendment of tariff quota regulations, involving WT/ACC/SPEC/UKR/5/Rev.2 
Page 32  
 
 public notification of intended arrangements and the provision of adequate opportunity for comments 
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 no te of these commitments.] 
- Fees and charges for services rendered 
91. The representative of Ukraine said that the Custom s Code (Articles 47, 76, 77, 85, 86 and 87) 
and Cabinet of Ministers' Resolution No. 65 "O n Customs Duty Rates" of 27 January 1997 had 
established fees for customs-related services such as customs clearance, temporary imports or exports, 
storage, warehousing, issue of certificates, registrati on, etc.  The list of such fees is reproduced in 
Table 10(a).  However, in order to simplify th e clearance through Customs of motor vehicles and 
cargo, the Supreme Rada had approved the Law "O n Amendments to the Law of Ukraine "On the 
Introduction of the Unified Fee charged at Points of Entry through the State Border of Ukraine"" 
No. 2659-II І on 12 July 2001.  The Law provided for a one -time unified fee levied at the border and 
covering customs inspection; sanitary, veterinary , phytosanitary, radiological and environmental 
controls; as well as the use of Ukraine's highways fro m the border to the point of destination.  The 
unified fee did not include import licence fees or ch arges for mandatory certifi cation, which were not 
levied at the border entry points.  The unified f ee entered into force on 1 January 2004.  Unlike the 
customs clearance fee, which was expressed in US dollars, the unified fee was stipulated in Euro 
(Table 10(b)), but payable in hryvnia at the offici al exchange rate.  In his view, this apparent 
discrepancy was not discriminative since both curr encies were freely convertible.  The distinction 
existed solely because the Euro ha d not been in circulation in 19 97 when the customs clearance fee 
had been defined by Cabinet of Ministers' Reso lution No. 65 "On Customs Duty Rates".  Beyond the 
unified fee, the new Customs Code of Ukraine No. 92-I У of 11 July 2002 envisaged only fees for 
customs clearance of goods outside the offices of th e customs authorities or outside regular working 
hours (Article 71), to be applied from 1 January 20 06.  Customs operations were effected round the 
clock.  Supplementary charges for off-location or overtime customs clearance  had been established by 
Resolution of the Cabinet of Ministers No. 93 of 18 January 2003, and ranged from US$20 to 
US$50 per hour worked (Table 10(a)).  Ships arrivi ng in Ukraine were charged port fees pursuant to 
Resolution No. 1544 of the Cabinet of Minister s "On Port Fees" of 12 October 2000 (detailed 
information is provided in documents WT/ACC/ UKR/110/Add.2, Annex 7, and WT/ACC/UKR/118, 
Annex 3).  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 33 
 
 
 Table 10(b):  Unified fee for customs and other inspection, and for usage of Ukraine's highways  
Unified fee in € 
Type of motor vehicle Capacity or weight of charged 
motor vehicle For performance of 
border control, per 
motor vehicle Supplement for use of 
Ukrainian highway to 
final destination, per 
kilometre 
From 10 to 30 seats inclusive  2 0.02 1. Buses  
Over 30 seats 5 0.02 
Under 20 tons inclusive 5 0.02 2. Trucks with or without 
trailers and tractors with 
or without semi-trailers  Over 20 to 40 tons inclusive 10 0.02 
Over 40 to 44 tons inclusive 10 0.1 
Over 44 to 52 tons inclusive 10 0.2 
From 52 to 60 tons 10 0.27 3. Heavy-weight motor 
vehicles  
Over 60 tons (per additional 10 ton) 10 0.78 
Under 5% inclusive - 0.05 
Over 5% to 10% inclusive - 0.1 
Over 10% to 20% inclusive - 0.27 4. Large-size motor 
vehicles with axial load 
exceeding  
Over 20% for each next 5% - 0.15 
5. Large-size motor 
vehicles with exceeding 
of width, height, length 
parameters  For each parameter  - 0.03 
6. Railway car, container   2 - 
 
92. A Member noted that Ukraine charged port fees at differentiated rates – regular and reduced 
rate – according to the flag of the vessel, and requested that the two-fee system be removed upon 
accession to achieve consistency with Articles I, II and VIII of the GATT 1994.  In reply, the 
representative of Ukraine said that the Cabinet of  Ministers had adopted Resolution No. 1069 "On 
amendments to the Regulation on port fees" on 17 July 2003.  The Resolution had equalized the 
regular and reduced-rate port fees for foreign owned vessels and removed completely the last 
restriction in the maritime transport services market.   
93. Some Members sought updated information re garding the elimination of fees listed in 
Table 10(a).  They also sought confirmation that an ad valorem  component of the former customs 
clearance fee for goods valued at more than US $1,000 had been eliminated on 1 January 2004.  
Specifically, the representative of Ukraine was requ ested to confirm whether Ukraine continued to 
levy ad valorem  charges for the customs clearance of goo ds for re-export; products brought into a 
licensed customs warehouse; goods under customs cont rol and goods at customs control zones within 
territories and in premises of enterprises that were storing such goods and other items, or after regular 
working hours, and whether any of the ship fees, be rthage fees, canal fees, lighthouse fees, cargo fees 
and other port fees were ad valorem  in nature.  These Members also not ed that the unified fee, while 
equal for domestic and foreign ope rators, depended on the type of ve hicle and not the cargo carried by WT/ACC/SPEC/UKR/5/Rev.2 
Page 34  
 
 it, and therefore asked Ukraine to clarify how the unified fee could correspond to the approximate cost 
of the services rendered.  Members also sought in formation on the collection of the unified fee. 
94. In reply, the representative of Ukraine referre d to the customs-related fees enumerated in 
Table 10(a) and applicable until 1 January 2005.  Pursuant to the Law "On the State Budget of 
Ukraine for 2005", while the Customs Code had come  into effect on 1 January 2004, the entry into 
force of a part of Article 71 of the Customs Code  would be postponed until 1 January 2006.  Thus, the 
supplementary charges for off-location or overtim e customs clearance, established by Resolution 
No. 93 of 18 January 2003, would not come into effect until 1 January 2006.  The ship, lighthouse, 
canal, berthage, anchor, administrative and sanitary  fees for vessels were generally stipulated in 
specific amounts per cubic metre, as detailed in document WT/ACC/UKR/118, Annex 3.  He stated 
that the unified fee implied a major simplification of  border crossing procedures, and that the level of 
the fee corresponded to the average cost of all types of control performed at the border.   
95. Asked to provide information on Ukraine's system  for setting tariffs (prices) for transportation 
of goods by rail, the representative of Ukraine re plied that the Ukrainian railway was a natural 
monopoly, and as such, operated within the regulat ory framework that governed the activities of 
natural monopolies (including pricing policy).  Tariff regulation of railway services, in particular, was 
carried out in accordance with the Laws "On Transport", "On Railway Transport", "On the 
Ratification of the Agreement on Carrying out a C oordinated Policy in Dete rmining the Transport 
Tariffs", as well as Resolutions of the Cabinet of Ministers No. 1548 of 25 December 1996, No. 457 
of 6 April 1998 and No. 105 of 21 January 2003.  The Ministry of Transport Communication and the 
Ministry of Economy no longer had the authority to  establish the tariffs for goods transportation by 
rail (pursuant to Resolution No. 105 "On Amendmen t of the Addendum to the Resolution of the 
Cabinet of Ministers of Ukraine No. 1548 of 25 December 1996").  A mechanism for introducing proposals by the Ministry of Transport Communication to the Cabinet of Ministers was being 
developed, but the procedure for the approval of tariffs had not yet been established. 
96. He added that differential tari ffs were applied for the trans portation of certain products, 
notably iron ore, coal, carbamide, ferrous and n on-ferrous scrap metal, as well as (since 2004) cast 
iron, coke, oil products, fertilizers, grain and fo odstuffs.  The decision for allowing the differential 
pricing had been adopted by the Cabinet of Ministers at the initiative of several interested Ministries.  
In his view, the difference between tariffs applied fo r the transportation of exports/imports and tariffs 
applied domestically was relatively modest (1.19 times higher for transportation of imports/exports) 
and of negligible economic impact as far as exports were concerned.   Differential tariff rates were 
applied only for freight transportation of ferrous me tal, fertilizers, timber and tar of coal in the  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 35 
 
 
 direction of Reny port and the transportation of fe rrous metal in the direction of Illichevsk port.  
Regarding differential tariff rates accorded to certa in trading partners, he said that Ukraine had signed 
international agreements with CIS member-States that aimed at coordinating tariff policies in the 
railway sector.  These international agreements de fined the areas under which individual economic 
operators were to sign special bilateral agreements , rather than detailing the preferential rates.  
97. [The representative of Ukraine confirmed th at Ukraine would ensure that any fees and 
charges for services rendered listed in Tables 10(a) a nd 10(b) or introduced in the future would only 
be applied in conformity with the relevant ob ligations of the GATT 1994, and from the date of 
accession any application of fees and charges by Ukraine for services rendered on or in connection 
with importation or exportation would be in acco rdance with the relevant provisions of the WTO 
Agreements, in particular Articles I, V, VIII, X and XI of the GATT 1994.  After accession, 
information regarding the application and level of any such fees, revenues collected and their use, 
would be provided to WTO Members upon request .  The Working Party took note of these 
commitments.]   
- Application of Internal Taxes on Imports  -  Excise Taxes 
98. The representative of Ukraine sai d that the entities that were liable to pay excise taxes were 
defined in Article 2 of the Decree of the Cabi net of Ministers "On Excise Duty" No. 18-92 of 26 
December 1992 (as amended by Law No. 849-IV of 22 May 2003).  He also noted that excise duties 
were stipulated in ad valorem , specific and combined or mixed rates. 
99. Some Members noted that Ukraine's excise dut y regime differentiate d between imported and 
domestically-produced goods, providing for lower rates for domestically-produced wines, non-filter 
cigarettes, and certain motor vehicles, as well as reduced rates for ethyl alcohol used in research, 
laboratories or by health care institutions, and for the manufacture of certain goods.  Concerning 
alcoholic beverages, some Members also noted that  Ukraine required "excise stamps" to be fixed on 
each bottle prior to importation, whereas domestic producers were only required to affix the stamps 
before commercialization.  Ukra ine was requested to acknowledge the WTO inconsistencies in its 
present excise tax regime, and commit that Artic le III of the GATT 1994 would be observed fully 
from the date of accession.   
100. The representative of Ukraine said that excise taxe s were levied on alcoholic beverages, ethyl 
alcohol, tobacco, petroleum products and motor vehicl es on the basis of the Laws "On Rates of Excise WT/ACC/SPEC/UKR/5/Rev.2 
Page 36  
 
 Tax and Import Duties on Tobacco" No. 30/96- ВР of 6 February 1996, "On Rates of Excise Tax and 
Import Duties on Ethyl Alcohol and Alcoholic Beverages" No. 178/96- ВР of 7 May 1996, "On Rates 
of Excise Tax and Import Duties on Certain Categories of Vehicles" No. 216/96- ВР of 24 May 1996, 
and "On Rates of Excise Tax and Import Duties On Certain Commodities" No. 313/96- ВР of 
11 July 1996; as amended by the Laws "On Introduc ing Amendments to Certain Laws of Ukraine On 
Taxation, Manufacture and Circulation of Excisab le Goods" No. 195-IV of 24 October 2002 and "On 
Introducing Amendments to Certain Laws of Ukra ine On Taxation of Excisable and Certain Other 
Commodities" No. 347- ІV of 24 December 2002, and "On Amendments to the Law of Ukraine 'On 
the State Budget of Ukraine for the Year 2003' and certain other Legislative Acts".  He said that 
Ukraine applied excises taxes uniformly on all imports  on the basis of the "destination principle" and 
confirmed that excise taxes were not imposed on goods  destined for exportation – i.e. goods for which 
a customs cargo declaration had been issued.  Th e excise tax rates in force in July 2004 and the 
products affected are enumerated in Table 11.  In response to a specific quest ion, he confirmed that 
this list was exhaustive and that no excise duty was le vied on jewellery.  As for the affixing of "excise 
stamps", he did not consider this an element of discrimination as foreign producers marked the 
alcoholic products and tobacco products destined for the Ukrain e market in the course of the 
production process, and so did Ukrainian manufacturers.   
101. He added that the Supreme Rada was considering a draft Law "On the Excise Duty" 
(Registration No. 3017), which would consolidate a ll laws currently governing matters related to 
excise taxation and would introduce unified rates of excise duty that would be collected throughout 
the territory of Ukraine.  He stressed that the pr eferential tax rates applied to domestically-produced 
goods were temporary measures that would be phased  out.  While finalizing the draft Law "On Excise 
Tax" (registration No. 3017) prior to consideration by the Supreme Rada, his Government intended to 
submit proposals to cancel the excise tax preferences on domestically-produced cars, pickup 
automobiles and motorcycles as well as component s used in the production of the motor vehicles, 
established by virtue of Articles 4 and 5 of the La w "On Excise Tax and Import Duty Rates on Certain 
Motor Vehicles" No. 216/96-VR of 24 May 1996.  The Law "On Excise Tax Rates on Ethyl Spirit and Alcoholic Beverages" imposed higher tax rat es on imported alcoholic beverages, but only until 
the date of Ukraine's accession to the WTO (Artic le 7).  His Government was developing and would 
shortly submit to the Supreme Rada for consider ation a draft Law "On Amending Certain Laws on 
Issues of Excise Taxation" which would accelerate the elimination of these higher taxes.  The mechanisms for the administration of excise taxes,  the monitoring of production procedures, and the 
circulation and designated use of ethyl spirit would be significantly improved.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 37 
 
 
 102. Some Members noted that, in addition to the pr eferential excise treatment of domestic auto 
production, the excise tax was based on the cubic capacity of the engine, which discriminated unfairly 
against automobiles with larger-siz e engines.  In their view, Ukraine should use a tax that did not 
differentiate in this manner if Ukraine intende d to maintain excise taxes on automobiles.   
103. The representative of Ukraine replied that Uk raine was supporting its automobile industry 
through excise tax exemptions.  The reduced exci se rates for domestically-produced vehicles were 
intended to be phased out by 1 January 2007, most likely by unifying the rates applied to 
domestically-produced and imported motor vehicles.  A synoptic overview of measures affecting the 
automotive sector, including the application of internal taxes, is provided in Table 19. 
104. [The representative of Ukraine confirmed that  from the date of accession, Ukraine would 
apply its domestic taxes including the excise taxes an d the value 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 from the excise taxes on automobil es until 1 January 2007 and VAT - until 1 January 
2008]. The Working Party took note of this commitment.] 
 -  VAT 
105. The representative of Ukraine said that Value Added Tax was applied pursuant to the Law 
"On Value Added Tax" No. 168/97-SR of 3 Apr il 1997, entering into force on 1 July 1997 and 
replacing the Cabinet of Ministers' Decree No. 14- 92 "On Value Added Tax" of 26 December 1992.  
VAT was levied at the general rate of 20 per cent (reductions to 17 per cent in 2005 and to 15 per cent 
in 2006 were under consideration) , but numerous goods and services we re exempt or zero-rated.  
Thus, the Law had zero-rated coal, coal products and electricity provided to households until 
1 January 2000, and zero rate VAT was also applied to  meat and milk products in Ukraine.  The zero 
rate VAT for milk and meat products would be in force until 1 January 2006.  As of 1 January 2005, 
all gas imports would be exempt from VAT, while the import of other energy  products (including raw 
oil and natural gas condensate) would be subject to 20 per cent VAT.  This new regime would be 
applied in a non-discriminatory manner, irrespective  of the country of origin.  Exports were zero-
rated.   
106. He added that Article 11.5 of the Law "On Va lue Added Tax" allowed taxpayers to issue 
promissory notes for the payment of VAT.  However this provision did not apply to the importation of 
excisable goods, nor to agricultural goods.  In additi on, this measure did not apply to goods imported WT/ACC/SPEC/UKR/5/Rev.2 
Page 38  
 
 by enterprises with foreign investment.  He stated that, as of the day of accession, this regime would 
be in conformity with Article III of GATT 1994 (see also section on "Investment Regime"). 
107. Some Members noted that sales of domestic  automobiles were exempt from VAT until 
1 January 2008, and that many other sectors - fro m shipbuilding to aircraft and spacecraft - enjoyed 
similar treatment.  A Member noted that Ukraine provided several forms of VAT exemptions to its agricultural producers that were inconsistent with  Article III of the GATT 1994, irrespective of 
whether these measures constituted a form of domestic support to local producers, and requested 
Ukraine to repeal these policies.   
108. The representative of Ukraine replied that VAT exemptions for domestically-produced motor 
vehicles, components and spare parts, and on inputs used in the production by the manufacturers, were being addressed in amendments to the La w "On Stimulation of Automobile Production in 
Ukraine".  Moreover, the draft Tax Code of Ukraine,  expected to enter into force on 1 January 2005, 
aimed at the harmonization of provisions in its Chap ter IV Value Added Tax with the requirements of 
the WTO.  He noted that the Law "On the State Bu dget of Ukraine for 2004" had suspended the VAT 
privileges for domestically-produced automotive vehi cles during 2004, except for enterprises with an 
investment programme approved by the Cabinet of Mi nisters prior to 1 January 2004.  He added that 
the Law "On Value Added Tax" exempted medici nes registered in Ukraine from VAT, but that 
imported medicines were also VAT exempt.  Th e Law "On the State Budget for the Year 2004" 
No. 1344-IV had suspended this provision during 2004 for both domestic and imported medicines.  
Provisions of the Law "On Value Added Tax" had al so been withdrawn for 2004 with regard to the 
VAT exemption on imports of materials, equi pment and components for shipbuilding and the 
construction of aircraft, except for companies which had signed contracts prior to the entry into force 
of the Law "On the State Budget for the Year 2004" and provided the advance payments received exceeded 20 per cent of the contract price.  In total 150 such contracts, whose terms could vary 
considerably, had been signed.  He provided upda ted information on the status of VAT exemptions 
granted to legal entities in document WT/ACC/UKR/119. 
109. Concerning the VAT treatment of domestic ag ricultural production, he noted that two 
mechanisms were in place in this sector.  One regi me applied to the producti on of milk and meat; the 
other allowed other agricultura l producers to deposit and use the assessed VAT for purchases of 
agricultural inputs.  Milk and meat (live wei ght) producers sold their output to the processors 
assessing VAT at a zero rate.  The processors app lied 20 per cent VAT to the sales of the final 
products, deducting 20 per cent VAT on all inputs, even though no VAT was collected on the milk and meat in live weight purchased from agricultura l producers.  For agricultural products other than  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 39 
 
 
 milk and meat, the Law "On Value Added Tax" ha d exempted agricultural enterprises from VAT until 
1 January 2004 with respect to transactions involvi ng sales of goods (works, services) of their own 
production, including products manuf actured under tolling arrangements , except for excisable goods.  
These exemptions had been extended until 1 January  2005 through the Law "On Amendments to the 
Law "On the State Budget of Ukraine for the Year  2003" and certain other Legislative Acts" No. 849-
IV of 22 May 2003 and the Law "On the Prolongati on of Effect of Certain Provisions in the Law of 
Ukraine "On Value Added Tax"" No. 1352-IV of 28 November 2003.  The Law "On Amendments to 
Certain Laws on Taxation of Agricultural Enterp rises" No. 2287 of 23 December 2004 had extended 
these exemptions further until 1 January 2006.  He st ressed that agricultural producers were required 
to pay 20 per cent VAT on their inputs, and the agro-industry calculated 20 per cent VAT on agricultural commodities they purch ased from agricultural producers.  However, these payments were 
not channelled into the State budget, but transferred to special accounts the agricultural producers held 
in commercial banks.  The agricultural producers could use the funds accumulated in these accounts 
to purchase agricultural inputs – fuel, seeds, fertil izer, pesticides and agricultural equipment or 
machinery – whether domestically-produced or im ported.  He emphasized that both VAT regimes – 
the one governing the taxation of milk and meat pr oducts sold by processing enterprises, and the one 
governing the taxation of all other agricultural products – provided for the non-discriminatory 
application of a 20 per cent VAT rate on all agricu ltural products sold, whether or not these products 
were imported or domestically-produced.  He c onsidered these measures to be compliant with 
Article III of the GATT 1994, gene rating a subsidy tantamount to  "revenue foregone" by his 
Government and thus to be examined under the provisions of the Agreement on Agriculture.   
110. Since 1 January 2005, the Law "On Amendments to Certain Laws of Ukraine on Taxation of 
Agricultural Producers and Support of Social St andards for their Employees" (Article 81) had 
introduced a new special regime for the taxation of  agricultural products, thus supplementing the Law 
"On the Value Added Tax".  The new special regime provided for the application of a lower rate of 
VAT – 10 per cent – and allowed agricultural enterp rises to dispose of the accumulated value-added 
tax at their own discretion.  The lower VAT ra te was applicable until 1 January 2007, but its 
application had been suspende d until 1 January 2006 pursuant to  the Law "On Amendments to 
Certain Laws on Taxation of Agricultural Enterprises " No. 2287 of 23 December 2004.  Agricultural 
enterprises were free to switch to the new special regime  but had to register in order to do so.  They 
could also continue to operate under the general VAT regime, which provided for 20 per cent VAT on 
agricultural products. 
111. A Member asked whether plans existed to ex tend the above-mentioned exemption system for 
agricultural products beyond 1 January  2005.  As far as the new special regime was concerned, some WT/ACC/SPEC/UKR/5/Rev.2 
Page 40  
 
 Members stated that it discriminated against importe d agricultural goods, inconsistent with Article III 
of GATT 1994, and sought a commitment from Ukrain e to eliminate this practice by the date of 
Ukraine's accession to the WTO.  Some Members reiterated their view that discriminatory tax 
exemptions, irrespective of purpose, violated Ar ticle III of the GATT 1994 and therefore had to be 
eliminated.   
112. The representative of Ukraine re plied that the regime governin g the taxation of agricultural 
products would also be applied in 2005.   Concerning the new special regime, he said that Ukraine 
would amend the Law "On Amendments to Certai n Laws of Ukraine on Taxation of Agricultural 
Producers and Support of Social Standards for their Employees" prior to WTO accession. 
113. [The representative of Ukraine confirmed that  from the date of accession, Ukraine would 
apply its domestic taxes including the excise taxes an d the value 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 WT O Members and to domestically produced goods 
[with exemption of automobiles until 1 January 2008].  The Working Party took note of this 
commitment.]  
[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 
[except for automobiles for whic h compliance with regard to ex cise taxes will be reached on 
1 January 2007 and with regard to VAT on 1 January  2008].  The Working Party took note of this 
commitment.] 
- Quantitative import restrictions, including  prohibitions, quotas and import licensing 
systems 
114. The representative of Ukraine said that the La w "On Foreign Economic Activity" No. 959-XII 
of 16 April 1991 allowed quantitative import restric tions to be introduced (i) in the event of a 
significant deterioration in Ukraine's balance of pa yments, or reserves of gold and foreign currency; 
(ii) to protect human, animal or plant life or health; public morals; the environment; national treasures 
of artistic, historic or archaeological value; or na tional security; (iii) on imports of precious metals, 
except for banking metals; (iv) for the protecti on of intellectual property, including patents, 
trademarks and copyright; (v) to fu lfil Ukraine's obligations under intern ational treaties; or (vi) in the  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 41 
 
 
 implementation of safeguard measures.  In his view, these provisions were in accord with the 
situations foreseen in Articles XII, XIX, XX and XXI of the GATT 1994.   
115. Importation (and exportation) of arms, amm unition, military equipment and products 
containing information constituting State secrets, wa s governed by the Law "On State Control over 
International Transfers of Products of Milita ry Designation and Dual Use" No. 549-IV of 
20 February 2003.  Those engaged in such trade requi red authorization from the Cabinet of Ministers, 
and the control procedures had been laid down in seve ral Resolutions of the Cabinet of Ministers, i.e. 
Resolution No. 384 "On Approval of the Regulati on on Procedures for Control over Exports, Imports 
and Transit of Products that may be used in the Manufacturing of Chemical, Bacteriological 
(Biological) and Toxic Weapons" of 22 April 19 97; Resolution No. 563 "On Approval of the 
Regulation on Procedures for Control over Exports, Im ports and Transit of Missile Devices, as well as 
Equipment, Materials and Technologies used in the Manufacturing of Missile Weaponry" of 
27 July 1995; Resolution No. 302 "On Approval of  the Regulation on Procedures for Control over 
Exports, Imports and Transit of Products that rela te to Nuclear Activities and may be used in the 
Manufacturing of Nuclear Weapons" of 12 March 19 96; and Resolution No. 1005 "On Procedures for 
Control over Exports, Imports and Transit of Cert ain Types of Devices, Equipment, Materials, 
Software and Technologies that may be used in th e Manufacturing of Armaments, Military or Special 
Equipment" of 22 August 1996.   
116. Asked specifically about the existe nce of bans on imports, he stat ed that import bans could be 
imposed in exceptional cases to protect human, animal  or plant life or health, in compliance with 
Article XX (b) of GATT 1994.  No import bans were imposed at present. 
117. A Member noted that Ukraine had prohibited th e import of buses and trucks that were more 
than five years old under the Cabinet of Minist ers Resolution No. 1191 of 8 September 2004 "On 
changes to the Rules of importation of means of tran sport to the Ukraine's te rritory".  This Member 
sought confirmation from Ukraine that this measure  would be phased out by the date of accession. 
118. The representative of Ukraine replied that from the date of accession Ukraine would not apply 
import restrictions related to the ag e of vehicles imported into Ukraine. 
119. Some Members noted that Ukraine had restri cted livestock imports through annual quotas 
from 1997 to 2003 under the Law "On State Regulation of Agricultural Imports" No. 468/97 
of July 1997, subsequently amended by Law No . 32/98 of January 1998, and sought a commitment 
from Ukraine not to maintain, introduce or reve rt to any such quotas or any other quantitative 
restrictions – including in relation to the im portation of livestock – that have no valid WTO WT/ACC/SPEC/UKR/5/Rev.2 
Page 42  
 
 justification after accession.  These Members also noted  that Ukraine would have  to conform with the 
provisions of Article XI:1 of the GATT 1994 and Ar ticle 4 of the Agreement on Agriculture.  In 
addition, a Member asked Ukraine to provide in formation on previously existing import quotas on 
raw cane sugar, as well as restrictions on electrical li ght bulbs and synthetic fur.  This Member also 
expressed concerns regarding a requirement to e xport the entire output of domestically-produced 
refined sugar derived from imported raw sugar, and sought clarification as to when this provision 
would be repealed. 
120. The representative of Ukraine replied that the validity of Article 3 of the Law "On State 
Regulation of Agricultural Impor ts" had expired in 2003, and livestock imports were no longer 
subject to quotas.  Import quotas were only applied in connection with safeguard measures (Table 14) 
and as preferential import tariff quotas on some food products established under the free trade 
agreement with FYROM.  Ukraine's anti-dumping le gislation provided for the use of anti-dumping 
duties, but not for import quotas nor for licensing.  Concerning the import quota on raw cane sugar, he said that an import quota had been established in 19 94 pursuant to Resolution No. 1046 of the Cabinet 
of Ministers of 17 December 1993.  This Resolu tion had been invalidated as of 1 January 1995.  
Thereafter no import quotas on raw cane sugar had b een used.  He emphasized that even though 
import quotas had been applied, they had not been  used, as actual volumes of imported raw sugar in 
some years were smaller than the volumes set by legislation.  He added that safeguard measures in the form of import quotas on electric light bulbs and synt hetic fur had been terminated on 22 May 2003.  
Regarding the mandatory export requirement for suga r refined domestically from imported raw sugar, 
he said that Ukraine would amend its legislation in order to cancel this rule (see sections on "Trade-
Related Investment Measures" and "Agricultural Policies").  
121. A Member was concerned about the consistenc y of Ukraine's preferential import quotas with 
the provisions of Article XXIV:8(b) of GATT 1994.  The representative of Ukraine replied that upon 
accession Ukraine would notify its free trade ag reement with FYROM to the WTO Committee on 
Regional Trade Agreements and would comply with its recommendations. 
122. A Member noted a statement by Ukraine that import quotas allocated to individual importers 
"may not exceed 35 per cent of the size of the quota period or such other period envisaged by the 
relevant decision of the Commission" and questio ned the consistency of this requirement with 
Article 3:5(h) of the Agreement on Import Licensi ng Procedures.  The representative of Ukraine 
replied that this provision stemmed from the anti monopoly legislation of Ukraine.  However, an 
importer having exhausted his 35 per cent share of  a quota could apply again for another licence 
within the same quota period.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 43 
 
 
 123. On the subject of licensing, the representative of Ukraine said that Ukraine had implemented 
a licensing system to shield consumers against lo w quality products, and to protect the environment 
from ozone depleting substances.  Licensing require ments directed at low-quality imports were no 
longer in force as Article 16 of the Law "On Foreign Economic Activity" had been amended in July 2003.  A completed Questionnaire on Impor t Licensing Procedures was provided in document 
WT/ACC/UKR/99, subsequently re vised and updated in document WT/ACC/UKR/99/Rev.1.  The list 
of goods covered by the licensing regime and the li cence terms were decided annually by the Cabinet 
of Ministers upon a proposal from the Ministry of Economy and European Integration.  A comprehensive list of goods subject to licensing in 2005 is provided in Table 12 (a, b, c).  Import licences applied in connection with safeguard measur es were issued on a first-in first-out basis.  
124. He added that, for some of these products, the importer was also required to receive prior 
approval from the relevant administrative agency before obtaining the import licence.  The prior 
approval was not automatic.  Thus, for importation of herbicides permission was granted by the Main 
State Inspection on Plant Protection at the Ministry  of Agricultural Policy while for agrochemicals the 
relevant agency was the State Technological Center for protection of Land Fertility of the Ministry of 
Agricultural Policy (in these cases, prior appr oval was necessary to ensure plant, soil and 
environmental protection).  The Ministry of Sc ience and Education approved the importation of 
optical polycarbonate for production of discs and laser reading systems, and the Ministry of Environmental Protection issued permits for oz one-depleting substances a nd products containing 
ozone-depleting substances.  A list of goods subject  to prior approval (non-automatic licensing) is 
provided in Table 12 (a) and 12 (b). 
125. A Member was concerned about Ukraine's jus tifications – provided in the framework of 
GATT 1994 – regarding import approva ls in relation to "precious me tals and alloys", "precious 
stones", as well as "scrap metal" (Table 12(b)) an d sought the elimination of the import approval 
requirements by the date of accession.  The representative of Ukraine replied that, in practice, no 
import approval was applied to imports of "precious  metals and alloys".  As for scrap metal, he 
considered the provisions justifiable under Artic le XX(b) of GATT 1994 as the issuance of import 
approvals addressed concerns related to ecological and radiation safety. 
126. Asked about the existence of automatic impor t licensing, the representative of Ukraine said 
that a list of goods subject to automatic licensing ha d been approved by Resolution of the Cabinet of 
Ministers No. 1722 of 23 December 2004.  The list is reproduced in Table 12(c). 
127. Licence applications were processed by the Mini stry of Economy and European Integration 
or, by delegation of authority, by the Ministry of  Economy of the Autonomous  Republic of Crimea, or WT/ACC/SPEC/UKR/5/Rev.2 
Page 44  
 
 the relevant division of oblast, Kiev and Sevastopol city State administrations.  The import licence fee 
amounted to UAH 255 (about US$45) per application.   No deposit or advance payment was required 
and licence applications could be filed at any time during the year.  Automatic licenses were issued 
within 10 days, whereas non-automatic licenses were i ssued either within 30 days (if applications 
were considered on a first-in first-out basis) or with in 60 days (if all applications were considered at 
the same time).  The applicant could appeal a deci sion to refuse an import licence in a judicial order 
according to the provisions of the Civil Procedur al Code and the Commercial Procedural Code.  
Licences were not transferable between importers.  An import licence was valid until the end of the 
calendar year, but would still be effective for cust oms processing until 1 March of the following year.  
No penalties were imposed for pa rtial or non-utilization of an import licence.  Asked about the 
requirement to produce a certificate of origin for products subject to import licensing, the 
representative of Ukraine replied that this provi sion applied only to import licensing of ozone-
depleting substances form countries determined accord ing to the Montreal Protocol (information on 
certificates of origin is provided in the section on "Rules of origin"). 
128. Some Members understood that the Law "O n Foreign Economic Activity" was being 
amended and sought further detail on the nature of the changes, in particular regarding Ukraine's 
application of import restrictions and its import lic ensing procedures.  Ukraine was also requested to 
provide information on import licenses issued by the Ministry of Agrarian Policy to import certain products, including fish and other seafood.   
129. The representative of Ukraine replied that the Law "On Foreign Economic Activity" was 
being revised to ensure full conformity with WTO ru les on trade remedies.  The Ministry of Agrarian 
policy did not issue import licenses for any product, including fish and other seafood, and imports of 
fish and seafood products were not subject to licensing in Ukraine.   
130. [The representative of Ukraine confirmed th at, from the date of accession, Ukraine would 
eliminate and would not introduce, re-introduce or ap ply quantitative restrictions on imports or other 
non-tariff measures such as licensing, quotas, bans , permits, prior authorization requirements, 
licensing requirements, and other restrictions having  equivalent effect, that cannot be justified under 
the provisions of the WTO Agreement.  He furt her confirmed that the legal authority of the 
Government of Ukraine to suspend imports and expor ts or to apply licensing requirements that could 
be used to suspend, ban, or otherwise restrict th e quantity of trade would be applied from the date of 
accession in conformity with the requirements of the WTO, in particular Articles XI, XII, XIX, XX, and XXI of the GATT 1994, and the Multilateral Tr ade Agreements on Agriculture, Sanitary and  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 45 
 
 
 Phytosanitary Measures, Import Licensing Procedures,  Safeguards and Technical Barriers to Trade.  
The Working Party took note  of these commitments.]   
- Customs valuation 
131. The representative of Ukraine said that Section XI, Chapters 46 and 47, of the new Customs 
Code No. 92-IV of 11 July 2002 and the Cabinet of  Ministers' Resolution No. 1375 "On Approval of 
the Procedure for Declaring the Customs Value of Goods that Move Across the Customs Border of 
Ukraine" of 28 August 2003, both of which had ente red into force on 1 January 2004, had replaced 
the previous valuation rules based on the Custom s Code of Ukraine of 12 December 1991.  He 
confirmed that the Cabinet of Ministers' Reso lution No. 1598 of 5 October 1998 had remained in 
force and effect until 1 January 2004.  An Englis h translation of the new Customs Code could be 
consulted at www.welcometo.kiev.ua. 
132. The new valuation regime was governed by Articles 259-273 of the Customs Code of 
Ukraine, establishing the transaction value for the import of goods as the principal valuation method (Article 267) and the sequence for the applicati on of valuation methods in accordance with the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 
(the Customs Valuation Agreement ) in Articles 266 to  273.  A detailed examination of the provisions 
of the Customs Valuation Agreement and the corr esponding provisions of the new Customs Code was 
provided in document WT/ACC/UKR/110/Add.2, pag es 30-34.  The valuation provisions in the new 
Customs Code were, in his opinion, in full complian ce with the WTO Customs Valuation Agreement.   
133. Some Members stressed that the Interpretativ e Notes to the Customs Valuation Agreement 
were an integral part of the Agreement, and needed to be incorporated in full in national legislation.  
Moreover, Ukraine's legislation did not seem to pr ovide the right of appeal to a higher authority 
within the Customs administration as an option to ta king a matter to the courts, and Ukraine's practice 
regarding the publication of administrative rulings and judicial decisions did not appear to be in line 
with the requirements of Article 12 of the Customs Valuation Agreement.  Ukraine was also reminded 
that Article 7 of the Customs Valuation Agreement pr ohibited the use of arbitrary or fictitious values 
to determine the customs value; and that the Ag reement contained critical provisions concerning the 
withdrawal of goods against surety with the fi nal determination of customs value pending, the 
application of exchange rates, and protecting the c onfidentiality of information.  Moreover, Ukraine's 
Customs Code appeared not to contain any refere nce to the use of Generally Accepted Accounting 
Principles (GAAP), and its provisions appeared to di ffer from the text of the Agreement with respect 
to the definition of transactions value, lack of provisions for deduction from transaction value, 
deficiencies in the criteria for the use of transaction value between related parties, lack of procedural WT/ACC/SPEC/UKR/5/Rev.2 
Page 46  
 
 protection for declarants when the declared valu e was rejected, gaps and differences concerning the 
valuation of royalties and licensing fees, as well as inconsistencies regarding the circumstances for 
using the "fallback method" of valuation.  [Other  discrepancies between the provisions of the WTO 
Agreement and the Customs Code with regard to  valuation methods might be due to incorrect 
translation.] 
134. In reply, the representative of Ukraine said th at the State Customs Service was preparing a 
draft Law to amend the Customs Code to ensure the integration of the Interpretative Notes in 
Ukraine's legislation.  The right to appeal deci sions of the Customs authority was provided under 
Article 393 of the Customs Code.  Decisions of cu stoms offices subordinate to the regional customs 
administrations could be appealed to the regional customs administration, whose decisions could be 
brought before the State Customs Service.  Simulta neously, the appellant could also file a complaint 
with the local court at the place where the valuati on decision had been rendered.  In this case, the 
higher customs authority would terminate its consid eration of the complaint should the court accept 
the appeal.  The procedure for appeal against the court's decision was determined by the Code of 
Administrative Violations and other laws.  Admini strative decisions on valuation were at present 
published in the periodicals "Customs Affair",  "Customs Broker", "Customs Newspaper" and 
"Customs Parallel".  Court decisi ons were published in the periodical  "Court Practice of the Supreme 
Court of Ukraine in Commercial Cases".  The Cu stoms Code would be amended to stipulate 
mandatory publication of administrative and court d ecisions on valuation.  Decisions of the courts - 
particularly in the area of customs valuation - wo uld be placed on the Internet site of the State 
Customs Service. [As far as Internet availability of  court decisions was concerned, the precise date 
was not yet known.]   
135. He added that Article 273 of th e Customs Code stated that "a rbitrary and non-credible values" 
could not be used to determine customs values.  Article 264 of the Code did not authorize the 
Customs Service to charge the importer the cost of  verification of the declared value, but simply 
stated that the Customs Service would not reim burse the importer for any additional expenses 
incurred by him or her for having to file supplemen tary information with the Customs Service.  The 
exchange rates used by the Customs Service were the rates established by the National Bank for the 
day of commencement of customs clearance.  Confid ential business information could be disclosed by 
court order, in connection with criminal inves tigations conducted by law enforcement agencies and 
the tax administration, or if secrecy could endanger the life or health of the population – e.g. due to 
the poor quality of food products and consumer goods  (Article 30 of the Law On Information).  The 
requirement to use the Generally Accepted Acc ounting Principles would be stipulated in the 
legislative act adopting the Interp retative Notes.  Article 271 of the Customs Code included provisions  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 47 
 
 
 for deductions from the transaction value which, in his opinion were in line with the requirements of 
Article 5 of the Customs Valuation Agreement.  [T he English translation of new Customs Code would 
be redone to eliminate inaccuracies caused by translation.]   
136. A Member noted that minimum price provisions in the new Law "On State Support of 
Agriculture in Ukraine" No. 1877-IV of 24 June  2004 might be incompatible with the customs 
valuation method, as outlined in Article 273 of th e Customs Code.  This Member also sought the 
elimination of a US$1,500 fee for firms to be recognized as declarants, listed in Table 10(a). 
137. The representative of Ukraine replied that th e Law "On State Support of Agriculture in 
Ukraine" did not provide for the application of minimum purchase prices on imported goods.  
Minimum purchase prices were used as an indicator for triggering market intervention aimed at supporting domestic agricultural producers.  Mini mum and maximum purchase prices could only be 
applied to imports/exports temporarily if the Antimonopoly Committee concluded that the 
competitive operation of the market was threatened  and the Cabinet of Ministers endorsed this 
finding.  As for the US$1,500 fee listed in Table 10( a), he confirmed that this fee was slated for 
elimination along with other customs fees.   
138. [The representative of Ukraine indicated that Ukraine will apply the WTO provisions 
concerning customs valuation from the date of  accession, particularly the Agreement on the 
Implementation of Article VII of the GATT 1994.   The Working Party took note of these 
commitments]. 
[The representative of Ukraine confirmed that, fro m the date of accession, Ukraine would apply the 
WTO provisions concerning customs valuation, in cluding the Agreement on the Implementation of 
Article VII of the GATT 1994 and Annex I (Interpre tative Note) and paragraph 2 of the Decision on 
Valuation of Carrier Media Bearing Software for Data Processing Equipment (Decision 4.1), 
providing that valuation of the software was based on the value of the media.  He stated that Ukraine 
would not use any form of reference or minimum pr ice or fixed valuation schedule for the valuation 
of imports or to apply duties and taxes, and that all methods of valuation used were in conformity with 
those provided for in the WTO Agreement on the Im plementation of Article VII of the GATT 1994.  
The Working Party took no te of these commitments.] 
- Rules of origin  
139. The representative of Ukraine said that Ukra ine's non-preferential rules of origin were 
governed by Section XII of the 2002 Customs Code , Articles 276 to 285.  The Code established the WT/ACC/SPEC/UKR/5/Rev.2 
Page 48  
 
 main criteria for determining the country of origin  for goods, while the Resolution of the Cabinet of 
Ministers "On Approval of the Order of determinati on of Country of Origin of a Good, Crossing the 
Customs Border of Ukraine" No. 1864 of 12 December  2002 laid down detailed rules.  Other relevant 
legislative acts included the Resolution of the Cabinet of Ministers No. 1861 of 12 December 2002, 
which approved the Procedure for the Verification of  Certificates of the Ukrainian Origin of Goods, 
and the Resolution of the Cabinet of Ministers No. 2030 of 27 December 2002, which approved the 
Schedule of Production and Technological Processes for Determining the Criterion of Sufficient 
Processing of Goods, and the Procedure for the Esta blishment and Application of the Criterion in 
Determining the Country of Origin of Goods.  The implementation of the prov isions of Article 2(h) 
and Annex II, paragraph 3(d) of the Agreement on Rules of Origin (i.e. the right of an importer, 
exporter or any person with a justifiable cause to seek an origin determination prior to shipment, 
delivered within 150 days and valid for three year s, providing the facts and conditions underlying the 
assessment remain comparable) had been ensured, in his view, through the adoption of the Cabinet of 
Ministers' Resolution "On Supplementing the Procedure for Identifying the Country of Origin of a Product Which is Moved Across the Customs Border  of Ukraine" No. 1443 of 28 October 2004. 
140. As to preferential rules of origin, these we re governed by international treaties and 
agreements concluded by Ukraine.  At present, theses included the rules of origin of the CIS 
countries, adopted by the Council of Governments of the Commonwealth of Independent Countries on 30 November 2000, and the rules of origin of the Free Trade Agreement between Ukraine and 
FYROM.  The rules of origin of CIS countries were based on the wholly-obtained or minimal 
processing criterion as well as, for processed goods, the substantial transformation criterion involving change of tariff heading (at the four-digit level of the Harmonized System) and/or ad valorem 
percentage requirements.  Impor ts from a CIS country covered by the wholly-obtained criterion 
included mineral resources, products of plant orig in, animals and animal products, fish and fish 
products, products extracted from the sea bed, wast e and scrap, high technology products made in 
open space or on board spaceships owned or rented from the CIS country; or products manufactured exclusively from the materials indicated above.  Si mple assembly operations; the preparation of goods 
for sale or transportation; preservation during stor age or transport; mixing operations which did not 
result in an essentially different product; and the slaughter of cattle did not constitute sufficient 
transformation or processing.  Imports from a CIS country were deem ed to have undergone 
substantial transformation if the value added propor tion exceeded 50 per cent.  As for residency rules, 
a product qualified for free trade treatment if it was tr aded on the basis of a contract/agreement signed 
between residents of CIS member-States or if it was imported from the territory of a CIS member-
State by a natural person resident in another CIS me mber-State.  To be eligible for this treatment, 
goods could not leave the territory of member-Stat es, unless direct transportation was impossible due  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 49 
 
 
 to the geographical location of member-States, or in  cases agreed upon with th e competent authorities.  
The rules included a provision on the right to request  prior assessment of origin.  The rules had been 
published in official gazettes and were also acces sible on the Internet.  The Customs Code included 
additional provisions concerning the confidentiality of information, the right of appeal against 
decisions of the Customs authorities in court, and th e absence of retroactivity,  in accordance with the 
Constitution of Ukraine.   
141. Asked to clarify a reference to "particular countries" found in Articles 278 and 279 of the 
Customs Code, the representative of Ukraine said th at the sufficient processing criterion for a specific 
good or a specific country (countries) was applie d in accordance with the requirements of the 
Customs Code and Resolution of the Cabinet of Ministers No. 2030 of 27 December 2002.  According to this Resolution, goods origina ting in countries with which Ukraine had signed 
international agreements regulating the procedure for determining the country of origin of goods, the 
sufficient processing criterion was applied in accord ance with the provisions of these agreements.  
Whenever the sufficient processing criterion had not been identified in the international agreement, 
the provisions of Articles 279 and 280 of the Customs Code applied. 
142. Asked about a mandatory requirement for certain imports to be accompanied by certificates of 
origin, the representative of Ukraine added that Ar ticle 282 of the Customs Code stipulated that 
certificates of origin were required for imports s ubject to preferential treatment by Ukraine; goods 
originating in countries which under the circumstan ces were subject to quantitative restrictions or 
other regulatory measures; stipulated in internationa l agreements or in Ukrainian legislation pertaining 
to the protection of public health, the environmen t, the rights of consumers, public order, State 
security, or other vital interests as outlined in the Constitution, including the ecological, economic and 
informational safety of Ukraine; or when the doc uments submitted for customs clearance did not 
contain any indication of origin, or the customs authorities had good reason to believe the declared 
origin to be incorrect.  Certificates of origin in cluded an exporter's declaration (written statement) 
attesting the country of origin, as well as a statement by the Chambers of Commerce (or other competent authority) in the exporting country, confirming the validity of the information contained in the certificate.  In case the certificate of origin was not available, imports could be accompanied by a 
declaration of origin.  Article 284 of the Code stated that customs clearance and the release of goods, 
whose country of origin could not be determined reliably, could be effected without a certificate 
origin against payment of full duties.  The "common" rate of import duty was always levied on imports not accompanied by certificates of origin.  However, importers could reclaim duty on goods 
enjoying preferential treatment by presenting the certifi cate of origin retrospectively within one year 
from the date of customs clearance.  As for free zones, rules of origin of goods imported from WT/ACC/SPEC/UKR/5/Rev.2 
Page 50  
 
 [manufactured or sufficiently transformed in] speci al economic zones were determined in accordance 
with the procedure established by Article 18 of the Law "On Single customs Tariff" No. 2097-XII of 
5 February 1992. 
143. [The representative of Ukraine confirmed th at, from the date of accession, Ukraine would 
comply with the provisions of the WTO Agreement on Rules of Origin.  The Working Party took note of this commitment.]  
[The representative of Ukraine confirmed that fro m the date of accession Ukraine's preferential and 
non-preferential rules of origin would comply full y with the WTO Agreement on Rules of Origin. The 
Working Party took note of this commitment.] 
[The representative of Ukraine confirmed that fro m the date of accession Ukraine's preferential and 
non-preferential rules of origin would comply full y with the WTO Agreement on Rules of Origin, and 
that the requirements of Article 2(h) and Annex II,  paragraph 3(d) of the Agreement, which require 
provision upon request of an assessment of the or igin of the import and outline the terms under which 
it will be provided, woul d be established in Ukraine's legal framework prior to accession.  The 
Working Party took note of this commitment.] 
- Other customs formalities 
144. Some Members stated that Ukraine's custom s clearance procedures were cumbersome and 
encouraged Ukraine to make further progress in the simplification and reform of its customs regime.  
A Member noted that importers were required to present a "certificate of goods examination" issued 
by the Ukraine Chamber of Commerce and Industry  or its regional department, determining the 
commodity nomenclature of the importation, and wo ndered why this task could not be performed by 
customs officials.   
145. In reply, the representative of Ukraine said that  the new Customs Code aimed at simplifying 
customs procedures.  He also pointed to the unified  fee for customs inspection and road usage that had 
entered into force on 1 January 2004 as one of the actions Ukraine was taking to streamline clearance 
of vehicles and cargo at the border.  The State Customs Administration determined the commodity classification of goods.  In cases where the classification was a complex technical matter or the customs official and the importer (declarant) held differing views on the appropriate code, the 
declarant could address the Chamber of Trade and Commerce or its regional divisions in writing to 
obtain additional information or their interpretati on.  The Chamber of Trade and Commerce and its 
regional divisions identified the appropriate HS C ode pursuant to the Law "On Chambers of Trade  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 51 
 
 
 and Commerce in Ukraine" No. 671 of 2 December 1997 .  He added that the right of appeal to the 
Ukrainian customs authorities, or to any state au thority, was guaranteed in accordance with standard 
procedures. 
- Preshipment inspection 
146. Noting that Ukraine did not require mandatory pre-shipment inspection of goods, some 
Members stated that Ukraine, in the event that pr e-shipment inspection services would be employed in 
the future, would need to ensure  that such services would be carried out in observance of WTO 
provisions, e.g. in the application of fees and ch arges for services rendered, other WTO requirements 
in customs processing, and in providing a right of ap peal to the Government of the decisions of pre-
shipment inspection entities.   
147. The representative of Ukraine confirmed that if Ukraine employed preshipment inspection 
services in the future, the Government of Ukraine w ould comply with the provisions [ensure that the 
requirements] of the WTO Agreement on Preshipment Inspection were fully implemented and that the 
operations of any preshipment inspection companies retained by Ukraine met the requirements of the 
WTO Agreements, including the Agreement on the Im plementation of Article VII and Articles VIII 
and X of the GATT 1994.  The Working Party took note of these commitments.] 
- Anti-dumping, countervailing duties, safeguard regimes 
148. The representative of Ukraine said that the Law "On Single Customs tariff" No. 2097-XII of 
5 February 1992 included general provisions for th e application of anti-dumping, countervailing and 
safeguard measures.   
149. Detailed provisions to implement the anti-dumpi ng regime were laid down in the Law "On 
Protection of National Producer From Dumped Imports" No. 330-XIV of 22 December 1998, as amended by Law No. 1595-III of 23 March 2000 and Law No. 860-IV of 22 May 2003.  The 
amendments were of editorial nature.  Anti- dumping procedures were initiated by a domestic 
producer, or its labour or trade union, filing a comp laint on behalf of the dom estic industry with the 
Ministry of Economy and European Integration.  The complaint should include evidence of dumping and injury, and establish a causal link between the dumped imports and the injury to the domestic 
industry.  The Ministry reviewed the complaint and decided whether to conduct an investigation.  
Anti-dumping investigations were carried out by th e Ministry in cooperation with the State Customs 
Service and the Interdepartmental Commission on International Trade.  Decisions to apply anti-
dumping duty, which was the only remedy provide d for by law, were promulgated by the WT/ACC/SPEC/UKR/5/Rev.2 
Page 52  
 
 Interdepartmental Commission on International Trad e.  Current anti-dumping measures in force and 
ongoing investigations are described in further detail in Table 13.   
150. He added that Ukraine's anti-dumping legi slation was based on the Agreement on 
Implementation of Article VI of  the General Agreement on Tari ffs and Trade 1994 and, in his 
opinion, in compliance with the Agreement.  He stated that Ukraine had never been accused of 
violating WTO norms and requirements in the app lication of anti-dumping measures.  However, the 
de minimis  thresholds with respect to the volume of dum ped imports were higher in current legislation 
than the thresholds stipulated in  the Agreement as these thresholds were based on the percentage of 
volume of consumption.  The implementa tion of several provisions related to de minimis in the Law 
was linked to Ukraine's entry into the WTO, notably  its Article 16, Part 4; and Article 12, Part 9 
(paragraph 2) and Part 7.  In response to a query  from a Member whether Ukraine had not established 
a practice to inform the authorities in the exporti ng country of the initiation of an anti-dumping 
investigation, and only intended to do so upon accession to the WT O, the representative of Ukraine 
replied that the Law provided for mandatory notifica tion to the authorities in the country of export of 
the initiation of an anti-dumping investigation.  In practice, the Ministry of Foreign Affairs provided 
such notification by informing the relevant author ities in foreign countries.  He confirmed that no 
anti-dumping duty would be imposed if the imports of  a given product constituted less than 3 per cent 
of the total import volume of this product.   
151. The Law "On Safeguards of National Industry Ag ainst Subsidized Imports" No. 331-XIV of 
22 December 1998 established detailed provisions for the application of countervailing measures.  
The Law was based on the Agreement on Subsidi es and Countervailing Measures and was, in the 
opinion of the representative of Ukra ine, consistent with the requirements of the Agreement.  As with 
anti-dumping actions, investigati ons were conducted by the Ministry of Economy and European 
Integration in cooperation with the State Custom s Service and the Interdepartmental Commission on 
International Trade.   
152. The representative of Ukraine said that the La w "On the Application of Safeguard Measures 
Against Imports to Ukraine" No. 332-XIV of 22 December 1998 laid down detailed provisions for the 
application of safeguard measures.  Safeguard  measures were applied by decision of the 
Interdepartmental Commission on International Trad e following investigations conducted by the 
Ministry of Economy and European Integration.  Completed and ongoing safegua rd investigations are 
enumerated in Table 14.  Imports could be made s ubject to surveillance if the safeguard investigation 
failed to detect any injury to the domestic producer, but the threat of injury was deemed to persist.  In  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 53 
 
 
 such cases, the volume and value of imports would be monitored through non-restrictive automatic 
import licensing.   
153. His authorities had reviewed the consistency of the Law with the requirements of the 
Agreement on Safeguards and had found most of the provisions to be in compliance with the 
Agreement.  However, some of the provisions of the Law were inconsistent, notably its Article 10, 
paragraph 3 which recognized that factors other than  increased imports could cause injury but did not 
require that injury from these other causes not be attributed to increased imports, as required in 
Article 4.2 of the Agreement on Safeguards; a nd Chapter IV, which provided for a "Surveillance 
Measure" if the Ministry established a threat of se rious injury in the course of the investigation - by 
necessity prior to a final determination - a measure which had no counterpart in the Agreement.  The 
provisions of Article 16 did not comply fully with the provisions of Article 5.1 of the Agreement on 
Safeguards.  Moreover, in applying definitive measures, Article 16.3 required the Commission to 
specify the countries, which was not consistent with  Article 2.2 of the Agreement, although Article 21 
exempted developing WTO members from this provi sion.  Articles 18 and 19 of the Law would also 
need to be revised to make the terms and pro cedures for review and liberalization of safeguard 
measures consistent with Article 7 of the Agreem ent.  In this connection, his Government had 
prepared a draft law to bring domestic legislation in line with WTO requirements.  The draft law had been submitted to the Supreme Rada  (Parliament) for consideration. 
154. Some Members highlighted a number of difficulti es experienced in connection with Ukraine's 
implementation of safeguard measures.  Concer ning safeguards taken in 2000 on imported plates, 
sheets, films and other Articles of polyurethane, Members noted late receipt of information which in addition had been insufficient to prove a surge in impor ts, the injury to industry, and the causal link.  
Moreover, the protective quotas had been set at appr oximately 2.5 times below the average of imports 
in the last three representative years, which was not consistent with Article 5 of the Safeguards 
Agreement.  These Members requested that this and other safeguard measures, and practice not 
corresponding to WTO rules, be eliminated as soon as possible. 
155. In reply, the representative of Ukraine not ed that imports of polyurethane had caused 
considerable injury to domestic producers and, sp ecifically, resulted in a 33 per cent decline in 
domestic production of polyurethane.  Th is effect had been established by a special investigation.  He 
noted that the application of special measures to imports of polyurethane had been terminated on 
3 October 2003 (Decision No. SP-83/2003/52-49 of the Interdepartmental Commission on International Trade).  At present, Ukraine applied saf eguard measures to imports of five items, four of WT/ACC/SPEC/UKR/5/Rev.2 
Page 54  
 
 them were subject to quotas and one item to an add itional duty.  More than 92 per cent of the imports, 
prior to the introduction of safeguards, originated in non-WTO Members.   
156. [The representative of Ukraine confirmed th at, from the date of accession, Ukraine would 
comply with the provisions of the WTO Agreemen ts on Anti-Dumping, Subsidies and Countervailing 
Measures, and Safeguards.  The Working Party took note of these commitments.]  
[The representative of Ukraine confirmed th at Ukraine would not apply any anti-dumping, 
countervailing or safeguard measure until it had no tified and implemented appropriate laws in 
conformity with the provisions of the WTO Agr eements on the Implementation of Article VI, on 
Subsidies and Countervailing Measures, and on Safegua rds.  In the elaboration of any legislation 
concerning such anti-dumping, countervailing and sa feguard measures Ukraine would ensure their 
full conformity with the relevant WTO provisions , including Article VI and XIX of the GATT 1994 
and the Agreements on the Implementation of Article VI, the Agreement on Subsidies and 
Countervailing Measures and the Agreement on Safeguard s.  After such legislation was implemented, 
Ukraine would also apply any anti-dumping duties,  countervailing duties and safeguard measures in 
full conformity with the relevant WTO provisi ons.  The Working Party took note of these 
commitments.] 
[The representative of Ukraine confirmed that fro m the date of accession Ukraine would apply any 
anti-dumping, countervailing or safeguard measure in full conformity with the relevant WTO 
provisions, particularly with the provisions of  the WTO Agreements on the Implementation of 
Article VI, on Subsidies and Countervailing Measur es, and on Safeguards.  The Working Party took 
note of these commitments.] 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
157. The representative of Ukraine said that export du ties had been introduced on the basis of the 
Laws "On Export Duty on Live Cattle and Hides" No. 180/96- ВР of 7 May 1996; "On Export Duty 
Rates for Seeds of Some Oil Crops" No. 1033- XIV of 10 September 1999, as amended by Law 
No. 2555- ІІІ of 21 June 2001, and "On Export Duty on  Ferrous Waste and Scrap" No. 216-IV of 
24 October 2002.  He noted that the export duty on oilseeds, originally set at 21 per cent, had been 
reduced to 17 per cent in 2001.  The products covered and the corr esponding rates of duty at present  
are listed in Table 15.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 55 
 
 
 Table 15:  Export duties levied by Ukraine   
Tariff code Product description Duty rate  Legislative basis Date of elimination 
01.02.90100 Live cattle: Young cattle 
weighing 350 kg and less; 
Cattle weighing over 350 kg €75 but not less 
than €1,500 per 
ton  Law "On Export Duty on 
Live Cattle and Hides" 
No. 180/96- ВР of 
7 May 1996 Ukraine will conduct a 
policy of gradually 
reducing the level of 
export duties.  Some 
duties may be 
eliminated. Ukraine is 
not planning to bind 
export duties at "Zero". 
01.02.90310 Heifers (female bovines that 
have never calved), cows, 
bulls, bullocks, etc.  €55 but not less 
than €540 per ton "" "" 
01.04.10 Live sheep  €50 but not less 
than €390 per ton "" "" 
41.01 Cattle hides  €30 but not less 
than €400 per ton "" "" 
41.02 Sheep or lamb skin  €30 but not less 
than €1 per animal "" "" 
41.03.90000 Pigskin only  €27 but not less 
than €170 per ton "" "" 
12 04.00900 Flax seeds, shattered or non-
shattered  Law "On Export Duty 
Rates for Seeds of Some 
Oil Crops" No. 1033-XIV 
dated 10 September 1999, 
as amended by Law 
No. 2555- ІІІ of 
21 June 2001 "" 
12.06.00900 Sunflower seeds, shattered 
or non-shattered  "" "" 
12.07.99990 False flax seeds only  17 per cent 
"" "" 
7204.1000 - Waste and scrap of cast 
iron Law "On Export Duty on 
Ferrous Waste and Scrap 
No. 216-IV of 24 October 
2002. "" 
  - Waste and scrap of alloy 
steel: "" "" 
7204.21 -- Of stainless steel "" "" 
7204.2110 - - - Containing by weight 
8% or more of nickel 
(ECSC) "" "" 
7204.2190 - - - Other (ECSC) "" "" 
7204.2900 - - Other  "" "" 
7204.3000 -Waste and scrap of tinned 
iron or steel (ECSC) "" "" 
  - Other waste and scrap: "" "" 
7204.41 - - Turnings, shavings, chips, 
milling waste, sawdust, 
filings, trimmings and 
stampings, whether or not in 
bundles:  "" "" 
7204.4110 - - - Turnings, shavings, 
chips, milling waste, sawdust 
and filings (ECSC) "" "" 
  - - - Trimmings and 
stampings: "" "" 
7204.4191 - - - - In bundles (ECSC) "" "" 
7204.4199 - - - - Other  "" "" 
7204.49 - - Other:  €30 per ton 
 
"" "" WT/ACC/SPEC/UKR/5/Rev.2 
Page 56  
 
 Tariff code Product description Duty rate  Legislative basis Date of elimination 
7204.4910 - - - Fragmentised (shredded) 
(ECSC) "" "" 
  - - - Other:  "" "" 
7204.4930 - - - - In bundles (ECSC) "" "" 
  - - - - Other:  "" "" 
7204.4991 - - - - - In bundles (ECSC) "" "" 
7204.4999 - - - - - Other  "" "" 
7204.50 - Remelting sc rap ingots: "" "" 
7204.5010 - - Of alloy steel (ECSC)  "" "" 
7204.5090 - - Other  €30 per ton 
 
"" "" 
 
158. Some Members stated that Ukraine's export duties were very high, with a strong trade-
distorting impact, and in some cases prohibitive for tr ade.  A Member raised pa rticular concerns about 
the export tax on ferrous scrap.  Another Member noted  that Ukraine appeared to apply a TRIM in the 
meaning of paragraph 2(c) of the Annex to the Agreement on Trade-Related Investment Measures by 
granting an exemption from export duties to agricultural producers, contingent on the production of certain agricultural products.  This Member stated that Ukraine was expected to achieve conformity 
with its future obligations under the TRIMs Agreem ent.  Ukraine was also requested to continue 
phasing out its export duties, so that these would be eliminated by the date of Ukraine's accession to 
the WTO, and thereby allowing Ukraine to commit not to apply export duties as a Member of the WTO.   
159. In reply, the representative of Uk raine stated that export duties per se were consistent with the 
WTO Agreements, but he acknowledge d that high export duties could act as export barriers and hence 
needed reduction.  The export duty on oilseeds ha d resulted in increased capacity utilization among 
seed processors and higher domestic output of oil, ma rgarine, special fats and mayonnaise.  As for 
live animals and hides and skins, he noted that the consumption of meat and meat products had 
declined substantially in Ukraine in the 1990s to the detriment of domestic producers.  The 
introduction of export duty on hides had resulted in a substantial improvement in the structure of 
Ukraine's exports of hides.  However, Ukraine recognized the negative impact the export duties had 
on investment and bilateral trade, but a proposal to repeal the export duties on live cattle and hides 
had been defeated in the Supreme Rada in 2000, an d the Cabinet of Ministers had rejected a similar 
proposal in 2002.  With regard to the TRIM-relate d concern raised by a Member, he stressed that 
agricultural producers which were legal entities in  any case were allowed to export live cattle (as 
specified in Law No. 180/96-VR of 7 May 1996) , except young cattle weighing 350 kg or less and 
hides from their own production, without payment of export duty.  The Customs and Tariff Council 
had recently approved a draft law which would re duce the export duty on cattle hides to 10 per cent 
(minimum €100 per ton).  The proposal was currently before the Supreme Rada. The Ministry of  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 57 
 
 
 Agrarian Policy had prepared a draft law which would reduce the export duty on oilseeds from 17 to 
15 per cent, followed by a further one per cent annua l reduction over a period of five years.  Ukraine 
had also committed to reduce the €30 per ton export duty on ferrous metal waste and scrap to €25 per 
ton upon accession, and then to €20 over a five year  period (€1 annual reduction).  The export duty on 
livestock would also be brought down upon accession –  including reductions from 75 per cent to 60 
per cent on "live bovine animals", and 50 per cent to 40 per cent on "live sheep and goats" – thereafter 
followed by a further five per cent annual reduction over a period of four years.  Export duties on raw 
furskins would be reduced to 20 per cent by th e date of accession, followed by a further reduction 
over the course of five years by one per cent annually. 
160. Some Members noted that Ukraine had also established minimum "indicative" export prices 
for a wide range of goods, and requested Ukra ine to explain why this measure should not be 
considered an export restriction, or related to e xport restrictions.  A Member noted that products 
subject to minimum indicative prices also seemed  be subject to export contract registration 
requirements and questioned the rationale for such a measure. 
161. The representative of Ukraine replied that  the Commercial Code No. 436-IV of 
16 January 2003, which had entered into force on 1 January 2004, in its Article 189, clause 4, had 
maintained the legal basis to stipulate indicative pr ices.  In his view, Article XI:I did not apply to 
restrictions applied temporarily to prevent a serious  shortage of products of critical importance to an 
exporting country.  The Ministry of Economy and European Integration established the indicative 
prices based on analytical input from the State In formation and Analytical Centre for External 
Commodity Markets Monitoring (Derzhzovnishinfo rm), upon consultation with leading exporters.  
The prices were binding on business entities enteri ng into sales/purchase contracts.  The minimum 
indicative prices in force in January 2005 are listed in Table 16.  He added that the minimum indicative prices were reviewed monthly, and up dated information could be found on the website 
www.ukrdzi.com.ua.  With regard to export contract registration, he said that not all goods requiring 
such registration were subject to indicative prices.   A draft Presidential Decree, which would cancel 
this registration requirement, was being prepared. 
162. Minimum indicative prices were established fo r Ukrainian exports subject to (i) quotas or 
licensing in an importing country – to ensure that Uk rainian exports were sold at the estimated market 
price prevailing in the foreign market and to avoid the imposition of restrictive measures; (ii) "special 
regimes", i.e price undertakings by Ukraine to allow the suspension of anti-dumping proceedings 
affecting Ukrainian exports; (iii) special import pro cedures effective in Ukraine, i.e. international 
bidding or other similar procedures and advance impo rt deposits in banks, as stipulated in Article 19 WT/ACC/SPEC/UKR/5/Rev.2 
Page 58  
 
 of the Law "On Foreign Economic Activity"; (iv) sp ecial procedures according to Article 20 of the 
Law "On Foreign Economic Activity"; (v) anti-dumping action in foreign markets – to ensure that 
Ukrainian producers set prices at a level consistent with the estimated price effective in the export 
market; (vi) requirements ensuing from Ukraine' s international commitments – for instance the 
Agreement on Suspending the Anti-dumping Inves tigation on Certain Cut-to-length Carbon Steel 
Plate.  He added that special import procedures, as d escribed in item (iii) above, were not applied in 
Ukraine and noted that the new draft law "On Foreign Economic Activity" did not provide for any 
such special import procedures.  He confirmed th at the list of cases governing the application of 
minimum indicative prices, as listed in this paragraph, was exhaustive.  
163. In summary, the indicative prices on ferrosilic ium, ferrochrome silicon, ferromagnesium 
silicon, carbamide, rolled steel, heavy sheet rolled me tal, ammonia and ferro-concrete reinforcements 
were due to anti-dumping measures taken by foreign trading partners, while for agricultural products 
the indicative prices had been introduced to prev ent a decrease of customs value and to ensure 
effective implementation of Ukraine's export duties.    Producers, wholesalers and processors were free 
to sell their products to exporters at any price, in cluding at prices lower than the indicative price.  
Exporters, on the other hand, were legally bound to set their prices at least at the level of the minimum 
indicative export price, since in the absence of i ndicative prices there would most likely be a reduction 
in the customs value and in the corresponding duty  collected.  However, pursuant to Order No. 547-a 
of the Ministry of Foreign Economic Relations and Trade of 31 August 1998, business entities were 
allowed to deviate from the indicative prices if th ey obtained an approved expert opinion from the 
Analytical Centre for Monitoring of External Product Markets, by providing supporting documentation that would justify a deviation from the s tipulated price in their contracts.  Enterprises 
would not be able to export their products at a pric e lower than the indicativ e price established by the 
Ministry of Economy and European Integration if they failed to produce the documents required for 
justifying the deviation.  The Analytical Centre could also offer business entities expert assistance on 
preparing the supporting documentation.   
164. A Member noted that the system of minimum indicative export prices placed the onus on the 
exporter to justify why products should be sold at a price that did not coincide with the applicable 
indicative price.  Thus, products could not be expo rted if the government did not agree with the 
exporter's justification.  Some Members stated that Ukraine should eliminate its minimum export 
prices by the date of accession, and commit not to a pply or revert to minimum export prices after 
accession, thereby ensuring conformity with Ar ticle 4 of the Agreement on Agriculture and 
Article XI:I of the GATT 1994.  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 59 
 
 
 165. [The representative of Ukraine confirmed that  at present export duties were applied only to 
the goods listed in Table [15].  Ukraine would reduce progressively th e export duties listed in Table 
[15] according to the timetable indicated.  After accession to the WTO, Ukraine would minimize the 
application of export duties on other products and apply such measures only in accordance with the 
provisions of the WTO Agreement.  He further conf irmed that the current duties and any changes in 
their application would be published in the Official  Gazette.  The Working Party took note of these 
commitments.] 
- Export restrictions  
166. The representative of Ukraine said that the La w "On Foreign Economic Activity" No. 959-XII 
of 16 April 1991 allowed quantitative export restricti ons to be introduced (i) in the event of a 
considerable imbalance in the internal market, pa rticularly of agricultural goods, fish and fish 
products, foodstuff and priority industrial goods, as well as other goods of vital importance to 
Ukraine; (ii) to protect human, animal or plant lif e or health; public morals; the environment; national 
treasures of artistic, historic or archaeological value;  or national security; (iii) on exports of precious 
metals, except for banking metals (Table 17(b)); (iv) for the protection of intellectual property, 
including patents, trademarks and copyright; (v) to fulfil Ukraine's obligations under international 
treaties; or (vi) in the implementation of safeguard  measures.  In his view, these provisions were in 
accord with the situations foreseen in Articl es XI, XIX, XX and XXI of the GATT 1994 and the 
TRIPS Agreement.   
167. He added that Ukraine primarily regulated expor ts through the application of export duties on 
some products, as noted above.  In addition, Ukra ine prohibited exports of  scrap non-ferrous metal 
pursuant to the Law "On Scrap Metal" No. 619-XIV of 5 May 1999 (Table 17(a)).  He reiterated that 
Article XI:1 of the GATT 1994 did not apply to bans  or restrictions on exports that were applied 
temporarily in order to prevent a serious shortage  of products of critical importance to an exporting 
country.  Exports of scrap metals generated by Ukraine's military, as well as exports of assembled 
parts/units of machines, ships, vessels, military equi pment and railway rolling stock, were not allowed 
for security reasons.  Parts/units in a disassembled state could, however, be exported as scrap.  There was no provision banning the export of scrap meta ls intended for processing abroad, followed by 
subsequent importation .  He held the opinion that these provisi ons were fully compatible with Article 
XXI of GATT 1994.  He added that voluntary export restraints affecting the exportation of metal 
products were currently in place, in compliance with signed international agreements.  These 
measures would be removed upon accession and the rele vant laws would be amended to meet the 
requirements of Article 11.1(b) of the Agreement on Safeguards.  WT/ACC/SPEC/UKR/5/Rev.2 
Page 60  
 
 168. Asked specifically about Ukraine's quota regime governing the export of sugar,  he said that 
the A quota determined the production of refined s ugar for sale on the domestic market, while the B 
quota was intended for supplies outside Ukraine under international contracts.  After fulfilling their 
obligations under the A and B quotas, sugar owners (business entities operating in the sugar market) 
were free to determine the volume of sugar intended for exports (C quota).  Owners were not obliged 
to supply the A and B quotas before they were allowe d to export under the C quota.  He added that B 
and C quotas had never been established by the govern ment (see section on "Agricultural Policies").  
169. The registration requirements for engaging in  exportation, as well as the HS numbers for 
goods requiring an export licence, were the same as those for importation.  An activity licence was 
needed to export alcoholic beverages; ethyl al cohol, cognac and fruit spirits; tobacco products; 
narcotics, psychotropic substances and precursor s; laser-readable discs and equipment for laser-
readable discs, and polycarbonate  for the production of optical  information storage devices; 
cryptosystems and means for cryptographic protecti on; and holographic protection elements (Table 
6(a, b)).  Goods subject to export licensing included (i ) precious metals; (ii) certain types of rolled flat 
metal from carbonic steel, hot rolled, without electrolytic or other metal covering, not in rolls, and 
more than 150 mm width, exported to the United Stat es; (iii) textile products  in categories 435, 442, 
444, 448 exported to the United States; (iv) rolled fl at metal, alloyed and plain steel exported to the 
EU; (v) certain types of rolled flat metal exported to the Russian Federation; as well as (vi) optical 
polycarbonates for the production of discs for laser reading systems; (vii) products, which might 
contain ozone-depleting substances and imported in aerosol pa ckaging; (viii) products which might 
contain ozone-depleting substances;  (ix) ozone-depleting substances; (x) iron ores and concentrates; 
(xi) certain copper products falling to HS Chapter 74; (xii) certain aluminium products falling to HS 
Chapter 76; (xiii) unwrought lead; (xiv) specific m achinery or machinery parts, relating to metal 
working, falling to Chapter 84 of the Harmonized System; (xv) certain petroleum oils and oils 
obtained from bituminous minerals; and (xvi) textile produc ts in categories 2, 2(a), 4, 5, 6, 7, 8, 12, 
13, 15, 26/27, 29, 83, and 117 exported to the EU.  For some of these products the exporter was also required to receive prior approval from the relevant administrative agency.  In addition, depending on 
the needs for ferrous scrap metal, the Cabinet of Ministers could impose restrictions on its exports.  
The export licences were issued to control exports, bu t were not restrictive in nature.  He confirmed 
that no products were subject to export duty as well as licensing.  Quantitative export restrictions and 
export licensing requirements are listed in Tables 17 and 18, while the list of goods subject to export 
approval is provided in Table 18(c).  
170. A Member asked the representative of Ukraine to  provide further details about some of the 
measures listed in the preceding paragraph.  In response, the representative of Ukraine noted that  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 61 
 
 
 precious metals were regarded as exhaustible natu ral resources, which were substitutes for gold and 
silver, and therefore fell under the provisions of Ar ticle XX(c) of GATT 1994.  He added that so far 
no licence for the export of gold and silver had been issued since none had been requested.  He further 
noted that the export control measures, listed in items  (ii) to (v), had been imposed in compliance with 
Ukraine's international agreements negotiated w ith trading partners.  These measures would be 
repealed upon the agreements' termination.  He al so confirmed that the licensing measure affecting 
exports of iron ore and concentrates was automatic and applied exclusively to domestically-produced 
goods; he stressed that this measure had been introduced in view of strengthening the State's regulatory role in strategic sectors of the economy  through trade monitoring.  He acknowledged that 
products listed in items (xi) to (xiv) were subject to  both prior approvals and export licensing, but held 
the view that these requirements were compatible with the provisions of Article 1(6) of the Agreement 
on Import Licensing Procedures.  He noted that the export licensing measures listed in items (xv) and 
(xvi) were no longer in effect. 
171. Some Members requested full information i ndicating the basis on which Ukraine would 
assess that a serious shortage of products of crucial importance to Ukraine continue to exist.  Ukraine 
should also detail the measures applied to domestic producers (to justify measures under 
Article XX(g)) and any government stabilizati on plans in place (to justify measures under 
Article XX(i)).  Unless such justifications could be provided, Ukraine's export restrictions on non-
ferrous metals and scrap metal would need to be eliminated by the date of accession.  Some Members 
noted that the export ban on non-ferrous scrap had be en in place for five years, and considered the ban 
clearly non-WTO consistent.  Moreover, the Governme nt of Ukraine appeared to have suspended the 
issuance of licences for fe rrous scrap in February 2004, effectiv ely halting the exportation of scrap.   
A Member enquired specifically about the existence of  any recent export bans or other restrictions on 
maize and barley.    
172. The representative of Ukraine replied that non-fe rrous metal scrap, which constituted a raw 
material for Ukraine's metallurgy industry, was in  critically short supply.  Ukraine had no other 
domestic source of raw material for most non-ferrous  metals.  He added that all contracts for the 
exportation of metal scrap were subject to regist ration pursuant to the Law "On Scrap Metal".  
Ukrainian exports of ferrous scrap had not been su spended, but re-registration had been required for 
all registered and ongoing export contracts for fe rrous scrap in February 2004.  There were no 
restrictions applying to the export of ferrous scrap , other than the export duty of €30 per ton.  He 
stated that Ukraine committed to  eliminate the export ban on non-ferrous scrap and intended to 
substitute it by an export duty by the date of accession , the value of which remained to be determined.  
Exports of scrap metal from Ukraine had averaged 2,450,000 tons in 2004.  As for maize and barley, WT/ACC/SPEC/UKR/5/Rev.2 
Page 62  
 
 he said that no export restrictions or export bans , had been applied to the exportation of these 
products.  
173. Some Members noted that Ukraine appeared  to apply export licence fees derived in 
proportion to individual income in Ukraine or as a percentage of the transaction value, whereas 
Article VIII of the GATT 1994 stated that all fe es and charges related to importing or exporting 
should be limited to the approximate cost of the services rendered.  Ukraine was invited to describe 
the steps it was taking to ensure the consistency of its fees and charges with the provisions of 
Article VIII of the GATT 1994 prior to accession.   
174. The representative of Ukraine said that export licences were issued against a fee equal to 
0.1 per cent of the value of the export contract.  He added that, pursuant to Cabinet of Ministers' 
Resolution No. 285 of 7 March 1998, customs cleara nce of scrap metal and ferrous and non-ferrous 
metal scrap was subject to a fee five times higher than the ordinary customs clearance fee for such 
transactions, except for business entities exporting su ch products pursuant to a State program for 
utilization of metals in common types of ammuniti on not suitable for further use and storage.  The 
additional fee for customs clearance of metal scrap  was set to be eliminated on 1 January 2005 
pursuant to Law No. 1344 of 27 November 2003 and Cabinet of Ministers' Resolution No. 1995 of 
24 December 2003.  Ukraine was in the process of re vising its export licence fee to reflect the actual 
cost of the services rendered.   
175. Some Members requested that Ukraine remove, by the date of accession, the WTO-
inconsistent policies in relation to exports of live animals, hides and skins, non-ferrous metal scrap 
and sunflower seeds and commit not to introduce or revert to any such export restrictions after 
accession in order to maintain conformity with Ar ticle XI:1 of GATT 1994 and, in view of the 
discriminatory effect such restrictions may have on  imported products, to comply with Article III:4 of 
GATT 1994 and Article 4 of the Agreement on Agriculture.  
176. A Member requested Ukraine to revoke – prior to accession – the provision for imposing 
restrictions on the export of ferrous metal scrap by  the Cabinet of Ministers, depending on the need 
for ferrous scrap.  This Member also noted that the B quota for sugar amounted to a restriction that 
stipulated how sugar must be exported, while also af fecting the destination of exports.  Since this was 
inconsistent with both Article XI  and Article I of GATT 1994, Ukraine was asked to eliminate the B 
quota by the date of accession.  With regard to th e restrictions on precious metals, alloys and stones, 
this Member had not been convinced of the releva nce of the justification provided by Ukraine in 
relation to Article XX(c) of GATT 1994.  Ukraine was, therefore, request ed to eliminate prior 
approval and subsequent licensing requirements a pplied on the export of these products (listed in  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 63 
 
 
 Table 17(b)).  Finally, this Member noted that prior approval and licensing requirements imposed on 
certain exports listed in Table 18(a) – namely products of iron ore and concentrates, copper, 
aluminium and lead falling to HS Heading 26.01 and HS Chapters 74, 76, 78, as well as a number of 
machinery parts falling to HS Chapter 84 – had to be eliminated by the date of accession.  
177. [The representative of Ukraine said that on accession Ukraine will ensu re that any export 
quantitative controls or export licensing requirement maintained or introduced are consistent with the 
relevant WTO provisions, including those contai ned in Articles XI, XVII, XX and XXI of the 
GATT 1994.  He added that f rom the date of accession th e nonferrous scrap metal export 
regime would be applied in conformity with  the GATT 1994 provisions including Articles I, 
III, VIII and XI.  [The Working Party took note of this commitment.]]. 
[The representative of Ukraine confirmed that from the date of accession the export licensing 
requirements and other export restrictions and co ntrol requirements listed in Table [17(b)] and 
paragraphs [167 and 169] of this re port or any introduced in the future  would be applied in conformity 
with WTO provisions, including those contained in Articles XI, XVII, XX and XXI of the 
GATT 1994.  [He also confirmed that any existing or  future export licence fee would be consistent 
with article VIII GATT.] The export ban on nonferrous scrap metal would be eliminated from the date 
of accession.  The Working Party took note of this commitment.] 
- Export subsidies 
178. The representative of Ukraine stated that Ukra ine had no export subsidy measures in place.   
179. Some Members sought a commitment from Ukrain e that from the date of accession it will not 
maintain subsidies, including export subsidies which met the definition of a prohibited subsidy, within 
the meaning of Article 3 of the Agreement on S ubsidies and Countervailing Measures and that it will 
not introduce such prohibited subsidies in the fu ture, and that export financing and other export 
promotion policies will be operated in conformity with WTO provisions.   
180. [The representative of Ukraine confirmed that  from the date of accession Ukraine will not 
maintain subsidies, including export subsidies wh ich meet the definition of a prohibited subsidy, 
within the meaning of Article 3 of the Agreemen t on Subsidies and Countervailing Measures, [except 
for subsidies to automotive industry until 31 Dece mber 2008] and that it will not introduce such 
prohibited subsidies in the future.  The Wo rking Party took note of this commitment.] WT/ACC/SPEC/UKR/5/Rev.2 
Page 64  
 
 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 181. Some Members requested that Ukraine provide  information on its non-agricultural subsidy 
programmes in the format applicable to WT O Members under the Agreement on Subsidies and 
Countervailing Measures (ASCM). 
182. In reply, the representative of Ukraine provided a draft notification of industrial subsidies, 
circulated in document WT/ACC/UKR/116.  The document covered programmes for the special 
economic zones and priority territories, technological  parks, as well as secto r-specific programmes for 
fisheries, shipbuilding, the automotive sector, aircra ft construction, the space industry, coal mining, 
and publishing (of books).  On a general note, he  observed that tax arrears had been written off for 
insolvent enterprises in 2001.  This was a one-tim e write-off based on the Law "On Procedures for the 
Repayment by Taxpayers of Arrears to B udgets and State Target Funds" No. 2181 of 
21 December 2000.   
183. The Law "On Measures of State Support for the Ship-Building Industry in Ukraine" 
No. 1242-XIV of 18 November 1999, as amended, established the legal basis for support to the 
shipbuilding industry and was set to expire on 1 January 2005.  Support for the shipbuilding industry 
had been extended until 1 January 2012 pursuant to  the Law "On Amendments to Some Laws of 
Ukraine on State Support for the Ship-Building Indust ry of Ukraine" No. 1766-IV of 15 June 2004.  
Subsidies were provided in the form of deferred tax payments, notably for advances received from 
clients, which would only be booked and subject to pr ofit tax at the time of a ship's delivery; VAT and 
customs duty exemptions on imported materials, equipment and assembled parts provided goods of 
similar specifications were not manufactured in Uk raine; exemption from payment of land tax; zero 
rated VAT on the final products; a nd a reduced price of credit for shipbuilding.  The new revision of 
the Law "On Value Added Tax" would enter into fo rce on 1 January 2005, establishing a moratorium 
on the granting of new subsidies and the expansion of existing preferences.   The Cabinet of Ministers 
approved the list of shipyards eligible for support, as well as an annual list of products covered by the 
VAT and customs duty exemptions.  The approval was based on the economic results of these enterprises – production and sales volume, number of empl oyees, tax arrears – in previous years.  The 
list of currently approved shipyards, coveri ng 43 enterprises, is reproduced in document 
WT/ACC/UKR/110/Add.2, Annex 9.  The land ta x exemption had been withdrawn with the 
promulgation of the State budget for 2004.  In a ddition, the budget law suspended the VAT exemption 
on imported and certain domestic inputs (servic es rendered by Ukrainian design and development 
enterprises) as well as the zero rated VAT applied on  domestic sales, except for enterprises which had  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 65 
 
 
 signed contracts and received advance payments exceed ing 20 per cent of the contract value prior to 
the entry into force of the Law "On the Stat e Budget of Ukraine for 2004" No. 1344-IV of 
27 November 2003.  Suspension of VAT exemptions  for 2005 would be determined in accordance 
with the revision of the Law "On the State budget for 2005". 
184. As for support to coalmining, the representative of Ukraine said that subsidies were governed 
by the policies laid down in the Mining Law and a restructuring programme "Ukrainian Coal", 
approved by Cabinet of Ministers' Resolution No . 1205 of 19 September 2001.  The purpose of the 
subsidies was to modernize the mining industry an d thereby reduce production costs.  According to 
Cabinet of Ministers Order No. 182- р of 31 March 2003, the overall level of support was not to 
exceed 5 per cent of the cost of production.   Di rect subsidy payments we re provided pursuant to 
Cabinet of Ministers' Resolution No. 1311 "On Procedures for Provision and Identification of 
Amounts of State Support to Coal Mining Enterpri ses for Partial Coverage of Production Cost and 
Construction and Technical Re-equipment of Ente rprises producing Coal, Lignite (Brown Coal) and 
Peat" of 21 August 2003.  Previously, subsidies ha d been provided pursuant to Cabinet of Ministers' 
Resolutions No. 1733 of 27 December 2001 and No. 26 of 6 January 1999.  The Ministry of Fuel and 
Energy approved the payments, which were allocated  by its Industry Commission within the limits set 
by the budget.  The Commission assessed the effici ency of the subsidies on a monthly basis, and 
would make a proposal to the Ministry on adjustment in support levels for the next budgetary period.  
No end date had been set for the subsidy programme for the coal mining industry. 
185. The Ministry estimated the annual production of  various types of coal, and would target 
support toward those types of coal where production would fall short of domestic demand.  Eligible 
for support were enterprises which satisfied all of  four criteria, i.e. (i) possessing considerable 
reserves of quality coal; (ii) inability to support viable modernization from own funding; (iii) reporting an operating loss for the last acc ounting year; and (iv) provision of adequate 
documentation on the enterprise's financial situa tion.  Support was allocated to State-owned and 
privately owned enterprises alike.  Asked to prov ide data on coal production,  exports and level of 
support, he added that during the first nine months  of 2003 total production of coal had amounted to 
44.6 million tons, of which 1.1 million tons had been  exported.  Two third of the exported coal was 
produced by mines which did not receive St ate support, while the support accounted for 
approximately 9 per cent of the cost of production for the subsidized enterprises exporting coal.   
186. The Law "On State Support of Aircraft Constr uction Industry in Ukraine" No. 2660-III of 
12 July 2001 provided for deferred tax payments to the aircraft industry from 1 January 2002 until 
1 January 2007.  Tax benefits included a delay in the booking to income of advance and preliminary WT/ACC/SPEC/UKR/5/Rev.2 
Page 66  
 
 payments from clients until delivery of the aircra ft or final product; exemption from land tax; and 
VAT and tariff exemption on imported materials, equipment and components provided such goods 
were not manufactured in Ukraine.  The Cabinet of Ministers approved an annual list of products 
covered by the VAT and customs duty exemptions.  The VAT privileges for the aircraft industry had 
been suspended for 2004 pursuant to the Law "On the State Budget of Ukraine for 2004", except for 
enterprises which had signed contracts and receive d advance payments exceeding 20 per cent of the 
contract value prior to the entry into force of th e Law.  Asked to confirm whether the suspension of 
VAT privileges would be extended into 2005, the representative of Ukraine said that the Law "On 
State Budget for 2005" had not extended the suspen sion of VAT exemptions for the automotive, 
shipbuilding and aircraft construction industries.  However, he anticipated that this Law would 
subsequently be revised to include prov isions for suspending VAT exemptions.  
187. The Law "On State Support of Space Activity" No. 1559-III of 16 March 2000 provided tax 
benefits to the space industry until 1 January 2009.   The industry was exempted from the land tax, 
imported inputs were exempt from import duty and VAT, and VAT was zero rated for sales of final 
products in the domestic market.  The Cabinet of  Ministers approved the list of products, import 
volumes and related procedures for VAT exempt imported inputs.   
188. Tax benefits to the construction industry were based on the Law "On Amending Some 
Legislative Acts of Ukraine due to Adoption of th e Law of Ukraine 'On Performing an Experiment in 
Housing Construction on the Basis of Kyivmiskbud Holding Company'" No. 1694-III of 
20 April 2000.  The benefits were  related to housing savings account s held by individuals and banks' 
reserves for long-term savings deposits.  The pr ogramme would be in place until 1 January 2006.  
However, a VAT exemption for the fiduciary management services of authorized banks had been suspended for 2004 according to the Law "On the State Budget of Ukraine for the Year 2004".   
189. Subsidies to the steel industry had been provided from 1 July 1999 to 1 January 2002 
pursuant to the Law "On the Conduct of the Economi c Experiment at Enterprises of the Mining and 
Smelting Sector in Ukraine" No. 934-XIV of 14 July 1999.  The programme had expired and no 
subsidies were provided during 2003.  The chemical  industry had been grante d investment incentives 
until 1 January 2003 in accordance with the Law "On Taxation of Enterprise Profit".  
190. Legislation governing industrial policy on fertili zers had been in force temporarily during the 
first six months of 2004.  Information on the legal acts regulating the application of these measures is 
provided in Table 3.  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 67 
 
 
 191. The representative of Ukraine said that the suppor t regime applicable to the automotive sector 
depended on the date of approval of the invest ments.  Investment projects approved before 
1 January 2004 were governed by the Law "On Stim ulation of Automobile Production in Ukraine" 
No. 535/97-VR of 19 September 1997.  The Law, as amended, provided subsidies in the form of 
deferred tax payments to the motor vehicle industr y, i.e. manufacturers of automobiles, buses and 
spare parts.  Eligibility was linked to the le vel of investment; for passenger cars minimum 
US$150 million, trucks and buses at least US$30 million, and minimum US$10 million for the 
production of components and spare parts.  Exemptions  from land tax were also linked to the level of 
investment.  The Law originally specified that privile ges with respect to direct and indirect taxes and 
customs duties were limited to firms having registered their investment programmes with the Cabinet of Ministers.  The programmes had to provide for step-by-step increase of local sourcing of 
automobile components to not less than 70 per cent by the end of the tenth year from the start-up of 
the investment programme.  Howeve r, the local content requirement had been eliminated through the 
Law "On Amending the Law "On Stimulation of Au tomobile production in Ukraine"" No. 2779-II of 
15 November 2001.  He also noted that the Law "O n the State Budget of Ukraine for 2004" suspended 
the VAT privileges for domestically-produced automotive vehicles during 2004, except for 
enterprises with an investment programme approved by the Cabinet of Ministers prior to 1 January 2004.  The Law "On Rates of Excise Duty on Motor Vehicles" No. 216/96 of 24 May 1996, which exempted domestically-produced vehicles from excise  tax, provided the manufacturers produced more 
than 1,000 units annually, remained in force; excise  tax exemptions were intended to be phased out by 
1 January 2007.  In his opinion, Ukraine's suppor t to automotive investment approved before 
1 January 2004 did not violate Article 3 of the Ag reement on Subsidies and Countervailing Measures.   
192. As for enterprises producing automobiles, mo torcycles and spare parts under investment 
projects approved during 2004 to 2008, these projects were governed by the Law "On Development of 
the Automobile Industry of Ukraine" No. 1624-IV of 18 March 2004, which had entered into force in 
May 2004.  The benefits provided to a qualifying producer included import duty exemption on goods 
and components used in the construction, modern ization and refitting of the production facilities; 
exemption from corporate profit tax for reinvested profits; and exemptions from the payment of 
import duties on inputs used to produce automobiles, motorcycles and spare parts originating in 
Ukraine.  Automobiles, motorcycles or spare parts we re considered to be of Ukrainian origin provided 
the value of inputs originating elsewhere amounted to  less than 50 per cent of the ex-factory price set 
by the producer.  The representative of Ukraine ack nowledged the existence of a TRIM in the new 
(2004) Law.  Whereas the 2004 Law no longer provided for VAT exemptions, the excise tax 
exemption provided according to the Law "On Rates of Excise Duty on Motor Vehicles" No. 216/96 WT/ACC/SPEC/UKR/5/Rev.2 
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 of 24 May 1996 would remain effective until 1 Janua ry 2007 and would also apply to newly approved 
projects.  The benefits accorded through the 2004 Law were set to expire on 31 December 2008.   
193. The representative of Ukraine acknowledged non-co mpliance with Article 3 of the Agreement 
on Subsidies and Countervailing Measures, as well  as the existence of a TRIM, for automotive 
projects approved during 2004 to 2008.  However, referring to Article 5 of the Agreement on Trade-
Related Investment Measures and Articles 28 and 29 of the Agreement on Subsidies and 
Countervailing Measures, Ukraine would seek a tran sition period until the end of 2008 for the non-
compliant measures.  He stressed that if prefer ences were to be eliminated prior to this date, 
confidence in the government's ability to maintain a credible investment policy would be eroded and 
investors' interests would be hurt.  Table 19 provides details on measures supporting the automotive 
sector. 
194. Some Members considered the tax privileges ac corded to the Ukrainia n automotive industry 
de facto discriminatory as they applied only to two producers.  Eligibility linked to minimum 50 per 
cent local input and certain production stages to be performed locally appeared  to constitute a local 
content requirement inconsistent with Article 3 of the Agreement on Subsidies and Countervailing 
Measures and Article III:5 of the GATT 1994.  In th eir view, these measures should be brought into 
full WTO conformity upon accession.   
195. Some Members sought a commitment from Ukra ine that from the date of accession it would 
not maintain subsidies, including export subsidies which met the definition of a prohibited subsidy, 
within the meaning of Article 3 of the Agreemen t on Subsidies and Countervailing Measures and that 
it would not introduce such prohibited subsidies in the future, and that export financing and other 
export promotion policies would be operated in conformity with WTO provisions.  A Member stated 
that the commitment should also address Ukraine's transparency obligations  under the Agreement. 
196.  [The representative of Ukraine confirmed th at from the date of accession Ukraine will not 
maintain subsidies, including export subsidies wh ich meet the definition of a prohibited subsidy, 
within the meaning of Article 3 of the Agreemen t on Subsidies and Countervailing Measures, [except 
for subsidies to automotive industry until 31 Dece mber 2008] and that it will not introduce such 
prohibited subsidies in the future, The Work ing Party took note of this commitment.] 
- Technical barriers to trade, sa nitary and phytosanitary measures 
197. The representative of Ukraine said that the principal laws governing standards, technical 
regulations and conformity assessment were th e Laws "On Standardization" No. 2408-III of  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 69 
 
 
 17 May 2001, "On Conformity Assessment" No. 2 406-III of 17 May 2001, "On Accreditation of 
Conformity Assessment Bodies" No. 2407-III of 17  May 2001, and "On Me trology and Metrology 
Activity" No. 113/98 of 11 February 1998; and for mandatory product certification the Laws "On 
Protection of Consumer Rights", "On State Regula tion of Imports of Agricultural Products", "On 
Labour Protection", "On Quality and Safety of Foodstuffs and Raw Food", "On Communications", 
"On Highway Traffic", "On Transport", "On Permissible Activity in the Area of Nuclear Energy Use", 
and "On Tourism".  He provided a detailed comparis on between Ukraine's basic legislation in this 
area and the provisions of the TBT Agreement in document WT/ACC/UKR/113, adding that the Supreme Rada had adopted the Law "On making ame ndments to the Law of Ukraine "On metrology 
and metrological activity"" No. 1765-IV on 16 June 2004.  The Amendments did not contradict the principles of the WTO TBT Agreement and primaril y introduced modern inte rnational terminology 
and principles in the area of metrology.   
198. Producers were responsible for the marking of  their products, and imported goods which did 
not comply with marking requirements could not be so ld in Ukraine.  Requirements were specified in 
the Laws "On Protection of Consumer Rights", "On Quality and Safety of Foodstuffs and Raw Food" 
and "On State Regulation of Production and Turn over of Ethyl Alcohol, Cognac and Fruit Alcohol, 
Alcoholic Beverages and Tobacco Products".  The Department of Consumer Protection within the 
State Committee of Ukraine for Technical Regul ation and Consumer Polic y (Derzhspozhyvstandart) 
supervised the compliance with marking requirement s through random inspections at the retail level.  
Producers and importers of special dietary food product s had to obtain the consent of the Ministry of 
Health.   
199. The State Committee of Ukraine for Technical Regulation and Consumer Policy 
(Derzhspozhyvstandart) was the central body of execu tive power in the area of standardization and 
technical regulation as well as a specially authorized  central body of executive power in the area of 
conformity assessment.  The Committee developed and implemented the policy of Ukraine in these 
areas.  In the area of standardization, priority w as given to harmonization with international standards 
and, in adopting regional standards as national st andards, preference was given to those regional 
standards that were identical to international sta ndards.  He noted that approximately 80 per cent of 
the 1,314 national standards adopted during 2001-2003 we re identical to international standards.  In 
all, some 1,500 harmonized standards were in effect  in early 2004, and he estimated that around 8,000 
standards would need to be implemented in Ukraine.   
200. Concerning technical regulations and conformity  assessment, he noted that Ukraine operated 
a State certification system (UkrSEPRO) based on six certification schemes, i.e. certification of either WT/ACC/SPEC/UKR/5/Rev.2 
Page 70  
 
 (i) single products; (ii) groups of products or articles; (iii) serially manufactured products; 
(iv) products with examination/inspection of producti on; (v) products with attestation of production; 
or (vi) products with assessment of a quality system or certification of a quality system.  The State 
Committee had drawn up a list of the products subject  to mandatory certification, approved by Order 
No. 498 of Derzhspozhyvstandart of  30 August 2002.  However, the coverage of the mandatory 
certification system was diminishing gradually as Uk raine was reviewing its regulations to conform 
with basic international practice, i.e. compliance wi th standards which - by definition - was voluntary, 
or mandatory requirements to be pr omulgated in technical regulations.  Thirty categories of low-risk 
goods had been removed from the list in 2002, and Uk raine was in the process of revising the list to 
eliminate additional low-risk goods – notably the sections listing tractor engines and agricultural 
machinery; electric machines; cine- and photographic equipment; as well as about 20 individual types 
of products included in other secti ons – from mandatory certification by the end of 2004.  He stated 
that Ukraine would not resort to mandatory certification if the legitimate objectives could be met in a less trade-restrictive manner.  The Laws "On Standardization" and "On Conformity Assessment" would be amended to ensure full compliance with Article 2 of the TBT Agreement.   
201. Some Members noted that the Ministry of Ag riculture imposed technical regulations and 
requested Ukraine to provide information about such  technical regulations, in particular government-
mandated shelf-life standards applicable to imported fish products.  Ukraine appeared also to have 
introduced new restrictions on the port of entry for fish products.  Ukraine was encouraged to 
continue reviewing the list of products subject to mandatory certification with a view to removing 
lower risk products such as cocoa beans, coffee beans, roasted and ground coffee, and powdered 
flavours. 
202. The representative of Ukraine confirmed that the Ministry of Agriculture could impose 
technical regulations pursuant to the Law "On Stan dardization" No. 2408-III of 17 May 2001.  Fish 
products were subject to technical regulations thro ugh mandatory application of Interstate Standard 
(DSTU) 1168-86, which mandated a use-by-date term from four months to one year for fish products.  
Fish products which did not comply with the shelf-life requirements under this standard could not be circulated within the territory of Ukraine.  He st ated that the requirement applied equally to domestic 
and imported fish products.  He added that for impo rted products the use-by-date term set by the 
manufacturer would be accepted, provided that a St ate sanitary and epidemiological examination had 
reached the same conclusions.  The State Authoriti es were aiming to harmonize shelf-life and use-by-
date terms for fish products in line with interna tional requirements.  He denied that Ukraine had 
introduced new requirements or border measures on the importation of food, agricultural or fish 
products.  He added that importation of animals, animal products and foodstuffs was regulated by  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 71 
 
 
 Veterinary Requirements Regarding Products Imported into Ukraine that  Fall under the Control of the 
State Veterinary Medicine Service.  Asked about the existence of multiple testing requirements by 
different public authorities, he added that importe d food raw materials and f ood products of animal 
origin were subject to veterinary and/or sanita ry examination and certification.  The Law "On 
Veterinary Medicine" and the Cabinet of Minister s' Decrees "On Standardization and Certification" 
and "On State Supervision of Compliance with St andards, Norms and Rules, and Sanctions for 
Violations thereof" had been am ended in February 2003 to elimin ate duplication of supervisory and 
controlling functions in central agencies of executive power.   
203. Some Members welcomed the steps that Ukraine was taking to make technical regulations, 
standards, and conformity assessment procedures compatible with WTO obligations, including the 
"modular approach" to conformity assessment based on ISO/IEC provisions, although Ukraine was 
also reminded that the adoption of regional standa rds, regulations or systems would not necessarily 
constitute compliance with WTO TBT requirements.  Some Members suggested that producers should 
be allowed to choose between different conformity  assessment procedures depending on the level of 
risk to consumers, workers and others, including th e choice of a manufacturers' declaration for low to 
medium risk products and, for higher risk produc ts, third party certification such as ISO 9000 should 
constitute an alternative to cos tly and time-consuming plant inspections.  Ukraine was requested to 
indicate the maximum period of time needed for the conformity assessment procedures, as well as the establishment and publication of conformity assessmen t fees proportional to the services rendered.  
Some Members also noted that Articles 10 and 12 of the Law "On Conformity Assessment" restricted 
the accreditation of conformity assessment bodi es to those resident in Ukraine.   
204. In reply, the representative of Ukraine said that producers could opt between conformity 
assessment schemes based on the analysis of pr oduction documents and t echnical supervision, 
inspection of production, attestation of production, and certification or assessment of compliance with 
ISO 9000.  The Law "On Conformity Assessment" (Articles 9 to 11) allowed manufacturers' 
declaration of conformity, although such declarations  could not substitute for conformity certificates 
required for goods subject to mandatory certification.   He added that 11 technical regulations had 
been adopted covering the conformity assessment modul es used in technical regulations and rules for 
the granting and use of marks of conformity; the safety of low-voltage equipment; electric household 
refrigerating devices; electromagnetic compatibility ; non-automatic weighing devices; and the safety 
of gas appliances; boilers; simple pressurized v essels; equipment operating under pressure; lifts; and 
toys.  An overview of the recommended certification schemes (models) in Ukraine is presented in Table 20.  The duration of the works depended on the certification scheme chosen.  A list of fees did 
not exist; these were calculated case-by-case pursuant to the "Rules on Determinations of the Cost of WT/ACC/SPEC/UKR/5/Rev.2 
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 Works to certify Products and Service", registered with the Ministry of Justice and published in the 
Official Viysnyk of Ukraine No. 14/1999. 
205. Ukraine allowed the accreditation of privat e conformity assessment bodies, but had no 
intention to permit accreditation of non-resident  conformity assessment bodies at this stage.  
However, Ukraine intended to negotiate agreemen ts for the mutual recognition of the results of 
conformity assessment procedures in accordance with  Article 6.3 of the TBT Agreement.  Once 
Ukraine's National Accreditation Agency would b ecome a member of ILAC, Ukraine would work 
towards increasing the acceptance of test results of  laboratories accredited with and notified by ILAC 
member bodies.   
206. He added that Order No. 633 of Derzhs tandart "On Approval of Procedures for 
Accomplishment of Works concerned with Certific ation of Foreign Seria lly Manufactured Products" 
of 18 August 1998 had been repealed by Derzhs tandart Order No. 514 of 25 September 2002, and 
thereby been brought into compliance with Article  5 of the TBT Agreement.  Imported goods were 
certified under the procedures and rules applicable  to domestically-manufactured products.  The 
introduction of technical regulations  on conformity assessment would give manufacturers the right to 
choose the conformity assessment procedure for their products.  Importers could obtain serial 
conformity certificates, valid for five years based on the selected scheme of certification, prior to the 
importation of a good subject to manda tory certification.  Goods importe d with serial certificates were 
not tested at the border unless it was evident that the goods had been damaged during transportation.  
In the absence of a serial conformity certificate, testing would be performed  upon importation to issue 
a certificate of conformity for the specific shipment.   
207. Regarding establishment of a TBT Enquiry Poin t, the representative of Ukraine said that 
Cabinet of Ministers' Resolution No. 84 of 1 Fe bruary 1995 had establishe d a National Information 
Centre of the International Information Netw ork (ISONET), allowing Derzhspozhyvstandart to 
provide regular information (notifications) on the development and adoption of technical regulations, 
products subject to mandatory certification, standa rdization programmes, as well responses to queries 
of WTO members.  Draft conformity assessment procedures were published on the website of the 
Derzhspozhyvstandart.  Draft produc t standards and technical regul ations were not published, 
primarily for technical and financial reasons.  He confirmed that Ukraine would implement the Code 
of Good Practice for the Preparation, Adoption, a nd Application of Standa rds (Annex 3 of the TBT 
Agreement) as well as the requirements for comments under Item 6 of Annex 2 and Articles 2, 3, 5, and 7 of the TBT Agreement in its national legisl ation by the date of accession.  Ukraine would 
accordingly establish a formal procedure to give fa ir consideration to public comments prior to the  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 73 
 
 
 adoption of final rules.  He also confirmed that  Ukraine would establish a single point for enquiry and 
notification.  [Specific information to follow; for the time being queries can be directed to 
dstu@issi.kiev.ua or by dialling 380 44 268-92 -73 (telephone) or 380 44 268-54-02 (fax).] 
208. Having examined document WT/ACC/UKR/113, a Member remained concerned that 
Ukrainian legislation did not appear to reflect fully the provisions of the TBT Agreement, notably that technical regulations should not be maintained if  their objectives could be addressed in a less trade-
restrictive manner, and the recognition of other Memb ers' regulations as "equivalent" rather than the 
principle of "adoption" of the regulations of othe rs.  Moreover, the Law "On Standardization" failed 
to address the issue of non-discrimination, and its text did not specify how decisions were taken 
regarding mandatory compliance and/or the developmen t of a technical regulation.  Parts of the Law 
"On Conformity Assessment" also appeared to contra dict Article 6.4 of the TBT Agreement.  Ukraine 
was also requested to clarify how it would meet th e requirements of the TBT Agreement with respect 
to the preparation, adoption and application of t echnical regulations by local government bodies and 
non-governmental bodies, and whether Standard  DSTU 1.13-2002 "On Rules of providing 
notifications to trade partners of Ukraine" met th e requirements of Article 2.9 of the Agreement.   
209. The representative of Ukraine replied that Ukrain e 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 requir ements, from the date of accession.  The Laws "On 
Standardization" and "On Conformity Assessment" would be amended to ensure full compliance with 
the TBT Agreement.  A draft Law "On Standards, Technical Regulations and Conformity Assessment 
Procedures", was currently being amended and cons olidated.  All existing technical regulations 
(mandatory standards) would be brought in line w ith the TBT Agreement as the technical regulations 
would be reviewed and, as necessary, revised to  eliminate all provisions exceeding international 
requirements and not justifiable under Article 2.4 of the TBT Agreement.  In addition, the technical 
regulations would be revised to assess whether or  not the circumstances or objectives giving rise to 
their adoption continued to exist, or whether the changed circumstances or objectives could be 
addressed in a less trade-restrictive manner.  Appr opriate amendments would be introduced to bring 
existing legislation in compliance with Article 2. 7 of the TBT Agreement and address the issue of 
accepting other Members' regulations as equivalent.  Technical regulations that did not comply with 
Article 3 of the TBT Agreement would also be el iminated.  The complete alignment of technical 
regulations and standards with WT O norms could not be completed by the date of accession.  Ukraine 
would therefore ask for an implementation period and submit a work program to the Working Party spelling out the steps remaining to be taken, and the required timeframe, to achieve full conformity.  
He considered DSTU 1.13-2002 "On the rules for notifi cation of trade partners of Ukraine" to be in WT/ACC/SPEC/UKR/5/Rev.2 
Page 74  
 
 conformity with Article 2.9 of the TBT Agreement.  This Standard had been  developed to meet the 
requirements of documents G/TBT/W/2/Rev.1 and G/TBT/9, as well as the notification requirements 
of the TBT Agreement and the provisions of the "C ode of good practice for the Preparation, Adoption 
and Application of Standards".  
210. [The representative of Ukraine stated th at, 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 Worki ng Party took note of this commitment.] 
[Ukraine commits to be in full conformity with the substantive provisions including procedural and 
transparency requirements of the WTO TBT Agreem ent from the date of accession.  Ukraine intends 
to bring all existing technical regul ations (mandatory standards) into  line with the TBT Agreement.  
This will be implemented through a program of revision of all existing technical regulations 
(mandatory standards) and elimination of those,  which exceed international requirements and cannot 
be justified under Article 2.4 of th e TBT Agreement.  In addition, re maining technical regulations will 
be reviewed 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 will also be 
eliminated.  Ukraine intends to implement this program over a period of X years.]   
- Sanitary and Phytosanitary Measures   
211. The representative of Ukraine said that his authorities had embarked on a programme of 
reform to bring Ukraine's regulation of sanitary  and phytosanitary measures in line with WTO 
requirements.  He provided deta iled information on ongoing and pla nned efforts in the form of a 
Sanitary and Phytosanitary Measures (SPS) Co mpletion Report (document WT/ACC/UKR/110/Add.3 
and Add.4), and an "Action Plan for Resolution of Pr oblem Issues, particularly at the State Border", 
reproduced in Annex 8 of document WT/ACC/UKR/110/Add.1.   
212. In pursuance of Presidential Decree No. 797 "On Additional Measures Towards Acceleration 
of Ukraine's WTO Accession" of 5 September 2001,  key legislation such as the Laws "On Ensuring 
Sanitary and Epidemic Safety of the Population" , "On Quality and Safety of Foodstuffs and Food 
Raw Materials", "On Protection of Population from In fectious Diseases", "On Veterinary Medicine", 
"On Responsibility of Enterprises for Violation on th e Law on Veterinary Medicine", "On Quarantine 
of the Plants" and "On Amendments to the other La ws in Connection to the Adoption of the Law on 
Quarantine" as well as secondary legislation in th is area, were being examined and amended as 
necessary to bring national legislation into conform ity with international requirements and standards.  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 75 
 
 
 213. At present, however, Ukraine's legislative system concerning SPS measures remained 
complex and fragmented, as illustrated by the "Pr ovisional List of Legislation Relevant to SPS 
Issues", reproduced in Annex B to document WT/ACC/UKR/110/Add.3, and by the fact that the 
administration of SPS measures fell within the scope of several institutions, including the Ministries 
of Health; Economy and European Integration; Envi ronment; and Agrarian Policy; the Department of 
Veterinary Service, the State Sanitary Epidemiological Servi ce, the State Service for Plant 
Quarantine, the State Customs Service, and th e Medved Institute of Ecological Hygiene and 
Toxicology.  Thus, for example, imported food of an imal origin was subject to certification by the 
Ministry of Health and authorization by the State Committee on Standardization, the certificate was checked at the Health Border Point and the pr oduct, including collection of a sample, at the 
Veterinary Border Point, followe d by surveillance in the market by the Epidemiological Unit, the 
Veterinary Service and the Associ ation of Consumers' Rights.   
214. A project funded by TACIS had also concluded that Ukraine's system of Border Inspection 
Points would need to be reviewed.  All consi gnments of imported food of  animal origin were 
subjected to elaborate laboratory tests with part of the costs covered by the owner of the goods.  Meat 
and poultry were, for example, tested for toxic elements (lead, cadmium, arsenic, copper, zinc, 
mercury), ten different pesticides, micotoxine, micr obiological parameters and radionuclide, at a cost 
of approximately US$120 per consignment.  Moreover, these costs were likely to increase in the future as the State would no longer support this activ ity.  In this connection, the representative of 
Ukraine noted that the Ministry of Health (Ord er No. 247 of 9 October 2000) had confirmed a new 
procedure for issuing medical hygiene certificates, and that the Cabinet of Ministers' Resolution 
No. 1569 "On the Procedure for Collecting the Unified Fee at Points of Crossing the State Border of 
Ukraine" of 24 October 2002 included a list of the products subject to sanitary and phytosanitary control at the border, determined pursuant to UCC FEA.   
215. Some Members noted the ongoing work in Ukra ine to improve the legal framework and 
related practices in the application of sanitary and phytosanitary measures, and stated their 
expectation that Ukraine would be in full conformi ty with all provisions of the SPS Agreement upon 
accession.  A Member stated that current testi ng requirements of importe d consignments under the 
veterinary border regime appeared to be excessive.   
216. In reply, the representative of Ukraine added that efforts were under way to submit to the 
Supreme Rada in 2004 a draft law amending SPS-re lated provisions contained in the Laws "On 
Veterinary Medicine", "On Quality and Safety of Food and Food Raw Materials", "On Plant 
Quarantine", "On Foreign Economic Activity", "On Ensuring Sanitary and Epidemic Safety of WT/ACC/SPEC/UKR/5/Rev.2 
Page 76  
 
 Population", "On State Regulation of Import of Agricultural Products", "On the Protection of 
Population from Infectious Diseases", and "On Pes ticides and Agrochemicals".  Ukraine intended to 
consolidate all existing SPS provisions into three sep arate framework laws, i.e. a Law on Veterinary 
Medicine, a Law on Safety and Quality of Food  Products, and a Law on Plant Quarantine, which 
would be the only laws governin g SPS matters.  The framework laws would incorporate the 
provisions of the WTO SPS Agreement related to  terminology; harmonization; equivalence in 
measures; risk assessment and appr opriate level of protection; ad aptation to regional conditions; 
transparency (enquiry and notification points); and inspection, control and approval procedures.   
217. The new Law on Veterinary Medicine would address animal health issues.  Provisions 
applicable to food products of animal origin woul d be included in the Law on Safety and Quality of 
Food Products.  In addition to the explicit inclus ion of provisions of the SPS Agreement, the Law on 
Veterinary Medicine would include  harmonization with international terminology, the introduction of 
international recommendations and guidelines in dise ase control, producer responsibility for ensuring 
the production and circulation of disease-free an imals and products, accreditation and authorization 
requirements for laboratories involved in the tes ting of domestic and imported animals and products, 
monitoring of animals and feed for residues of ha rmful substances, provisions enabling traceability of 
non-edible products of animal origin, transparent import procedures, and application of risk-based 
border control.   
218. The new Law on Safety and Quality of Food  Products would cove r all food products 
regardless of content and stage of processing.  Th e Law would introduce major conceptual changes in 
the production and handling of food products by  introducing best international practices 
encompassing a food-chain approach to safe food, including mandatory implementation of HACCP systems in food producing enterprises.  Thus, the producer would become responsible for the 
suitability (safety and acceptability) of food for huma n consumption, enabling the State to reduce its 
role to that of verifying the conditions and prac tices necessary to produce safe food.  In addition, the 
quality of food products would be  determined according to (voluntar y) standards and, as appropriate, 
minimum quality specifications defined in technical regulations.  The Law on Safety and Quality of 
Food Products would also include a clear delineation of authority between the Veterinary Department 
and the Sanitary Service, minimize the documen tation requirements fo r imported food products, 
streamline border control procedures based on the risk presented by a particular food product, 
establish requirements for the accreditation of a ll food control laboratories, and ensure broad 
acceptance of international standards and recomme ndations, to be adopted by the National Codex 
Alimentarius Commission of Ukraine.  Minor amen dments to the Laws "On Ensuring Sanitary and 
Epidemiological Safety of the Population", "O n Protection of the Population from Infectious  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 77 
 
 
 Diseases", and "On Pesticides and Agrochemicals" w ould ensure that the new Law would be the only 
legislation in Ukraine governing the importation of food products.   
219. The new Law on Plant Quarantine would update Ukrainian phytosanitary legislation to 
international standards by explicitly incorporating SPS principles and advances in the protection of 
plant health and life.  The new Law would be the on ly legislation in Ukraine applicable to imported 
plants, plant products, and other Articles capable of  carrying or transmitting plant pests.  The Law 
would specify clearly the basis for the determination of regulated pests, and the Articles that could be 
subjected to phytosanitary measures.  Additiona l features of the new Law included enhanced 
transparency in the process of granting quarantine permits (import permission), minimization of documentation for importing, and the introduction of a risk- and performance-based system of border 
control.   
220. The new legal framework would call for the establishment of a single SPS Enquiry and 
Notification Point, to be located at the Ministry of Economy and European Integration.  A draft Resolution was ready to be submitted to the Cabinet of Ministers.  He expected the enquiry point to be 
set up prior to the date of Ukraine's accession to  the WTO.  All existing SPS measures would be 
brought in line with the SPS Agreement.  Measure s exceeding relevant international recommendations 
and guidelines under the Codex Alimentarius, the In ternational Plant Protection Convention (IPPC) 
and the Office of International Epizootics (OIE) would be assessed to determine whether or not sufficient scientific evidence existe d to justify such protection, or whether the results of risk 
assessment would show that a higher level of protection was necessary - as stipulated in Articles 2.2, 
3, and 5 of the SPS Agreement.  Measures inconsistent  with the SPS Agreement would be eliminated.   
221. [The representative of Ukraine stated that Uk raine can commit to having its legislation in 
compliance with all the substantive provisions of th e SPS Agreement by the date of accession, and to 
be in conformity with procedural and transparency  requirements.  However, the complete alignment 
of sanitary and phytosanitary measures on WTO norm s cannot be completed by the date of accession.  
Ukraine will ask for an implementation period, and will present a work program (currently submitted 
to Ministries for approval) spelling out the steps that remain to be taken to ach ieve full conformity and 
the time required.]   
- Trade-related investment measures 
222. Some Members noted that the Law "On Stimula tion of Production of Motor Cars in Ukraine" 
of 19 September 1997 contained certain  trade-related provisions includi ng local content requirements.  
These Members requested Ukraine to remove these el ements.  A Member also noted that Ukraine's WT/ACC/SPEC/UKR/5/Rev.2 
Page 78  
 
 regulation of the sugar market appeared to infri nge several provisions of the Agreement on Trade-
Related Investment Measures.  In  particular, Ukraine's policy of mandatory exportation of sugar, 
refined domestically from raw suga r of foreign origin, violated Article III:4 of the GATT 1994 and 
Article 2.1 of the TRIMs Agreement in that it require d an enterprise to use domestic goods in terms of 
the value and volume of local production and limited an  enterprise's purchases or use of imported raw 
sugar to the volume of local products exported.  This Member also considered that Ukraine's 
minimum price policies constituted a prohibited TRIM in the meaning of Annex 1(a) as the purchase 
or use by an enterprise of domestic products was required to obtain an advantage on the sale of refined sugar.  Finally, Ukraine's internal production quota for sugar, under which producers were 
required to sell a fixed quantity of refined sugar on the domestic market, limited the sale for export 
and thereby represented a prohibited TRIM in the m eaning of Annex 2(c) of the TRIMs Agreement.  
This member requested Ukraine to abolish these requirements and restrictions, and to remove 
minimum internal prices on sugar. 
223. The representative of Ukraine replied that the Law "On Stimulation of Production of Motor 
Cars in Ukraine" had been amended on 15 N ovember 2001 to eliminate the local content 
requirements.  Other measures such as exemptions from VAT and excise taxes on sales of new 
vehicles produced by the benefiting enterprises ha d not been removed, although the Law "On the 
State Budget of Ukraine for 2004" had suspended the VAT privileges for 2004.  He confirmed, 
however, that the Law "On Development of the Au tomobile Industry of Ukraine" No. 1624-IV of 
18 March 2004, which had entered into force in  May 2004, linked State support to enterprises 
producing automobiles, motorcycles and spare parts to the value of inputs (minimum 50 per cent of 
the ex-factory price) originating in Ukraine.    
224. As for sugar, his Government would ame nd the Law "On State Regulation of Sugar 
Production and Sale" No. 758-XIV of 17 June 1999  and abolish the requirement of mandatory 
exportation of sugar produced from imported raw mate rials.  This requirement was not in compliance 
with Article XI:1 of the GATT 1994.  He considered the other existi ng regulations in compliance with 
the provisions of the TRIMs Agreement.  In his vi ew, the application of minimum prices to sugar 
complied with Article 6 of the Agreement on Agricu lture and did not constitute a prohibited TRIM in 
the meaning of Article 1(a) of the TRIMs Agreemen t.  With regard to Ukraine's production quota on 
refined sugar, under which producer s were required to sell a fixed quantity of refined sugar on the 
domestic market, he explained that Ukraine's legisl ation provided for two other quota systems, one for 
the supply of sugar outside Ukraine in accordance wi th international agreements (quota B) and one for 
sugar produced in excess of the first two quotas an d intended for sale exclusively outside Ukraine  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 79 
 
 
 (quota C).  He was therefore of the opinion that th e quota on the production of refined sugar (quota A) 
did not restrict exports. 
225. Referring to Article 5 of the Agreement on Trade-Related Investment Measures, the 
representative of Ukraine informed the Working Pa rty that Ukraine was seeking a transition period 
until the end of 2008 with respect to non-comp liant measures in the automotive sector.   
226. [The representative of Ukraine confirmed that  from the date of accession, Ukraine will apply 
its investment regime in compliance with the relevant provisions of the WTO, including the 
Agreement on Trade-Related Investment Measures,  and  in a non-discriminatory manner - to imports from all WTO Members and to domestically produced  goods [with the exception of automobiles until 
31 December 2008.] The Working Party took note of this commitment]. 
- State-trading entities 
227. The representative of Ukraine provided general information on the role of State-owned 
enterprises in Ukraine's economy and foreign trad e in document WT/ACC/UKR/67 and Addendum 1.  
Referring to enterprises owned by the State - thus excluding those owned by local authorities - he noted that the share of State-owned enterprises in  the total output of Ukraine had declined from 
40 per cent in 1996 to 30 per cent in early 1999.  The number of State-owned enterprises engaged in 
exports had fallen from 1,500 in 1996 to 600 by ear ly 1999.  However, as Ukraine's exports had 
declined significantly during this period, the Stat e-owned enterprises' share in exports had actually 
increased slightly during the second half of the 1990s, to  reach 19 per cent in the first three months of 
1999.  The share of the public sector in the economy  had been estimated at 22.9 per cent for the first 
half of 2004. 
228. In response to requests for detailed informati on on the State trading enterprises and evidence 
that these were operating in accordance with Artic le XVII of the GATT 1994, he provided a list of 
13 State-owned enterprises in document WT/ACC/ UKR/110 (item No. 62).  He stated that the 
activities of these enterprises were in conform ity with Article XVII of the GATT 1994.   
229. Some Members reiterated their request for de tailed information on the operation and purpose 
of each enterprise, stating why these should be cons idered State trading enterprises, and documenting 
that their actions were in conformity with the re quirements of Article XVII.  Ukraine was asked to 
confirm that it had enumerated all enterprises enjoyi ng exclusive or special privileges in relation to 
purchases or sales involving export or imports.  In connection with activity licensing, it had been noted that only State-owned or specialized ente rprises were granted licences to import and export WT/ACC/SPEC/UKR/5/Rev.2 
Page 80  
 
 ethyl alcohol, cognac and fruit spirits.  Thus, these enterprises had been designated trade privileges 
not available to other firms and individuals, and accordingly met the criteria for State trading 
enterprises.  A Member requested additional info rmation on "Khlib Ukrainy", which had not been 
included in the list of 13 enterprises.   
230. The representative of Ukraine replied that the State Joint Stock Company "Khlib Ukrainy" 
had been established in 1996.  The company had 81 wholly-owned production subsidiaries located in 
all oblasts of Ukraine, and controlled 18 to 20 per cent of Ukraine's grain storage and flour, cereal, 
and mixed fodder production capacities.  Its activiti es also included domestic and foreign trade in 
grain.  The basic exports of the company comprised of grain and grain products .  "Khlib Ukrainy" had 
engaged in export and import opera tions during 2001-2003, but the tr ansactions had been carried out 
according to normal commercial considerations.  As for special privileges enjoyed by the company, 
he said that for loan-rate (secured) grain procuremen t financed by bank credits the State would refund 
the interest payments due on the credits.  The company did not, in his opinion, enjoy any other 
privileges.  He added that "Khlib Ukraniy" ne gotiated long-term contr acts independently.  The 
enterprise was now undergoing restructuring pursuant to Resolution No. 604-p of 25 October 2002.  A 
brief description of the activity of SJSC " Khlib Ukrainy" is provided in Table 21. 
231. Activity licences issued to "specialized en terprises" referred to enterprises possessing the 
necessary facilities, equipment and expertise for the making of cognac spirits.  Although not listed 
among the 13 State-owned enterprises, he subsequent ly completed State Trading Questionnaires for 
"Ukrspirt" - a corporation licensed to produce and export ethyl alcohol, vodka and liqueurs - and the 
electric energy wholesale operator "Energorynok".  "Ukrspirt" held a monopoly on the exportation of ethyl alcohol, but not on vodka and liqueurs, whic h "Ukrspirt" manufactured and sold in competition 
with other producers and traders.  The questionnaires are reproduced in document 
WT/ACC/UKR/115.  He added that the 13 enterprises enumerated in document WT/ACC/UKR/110 
had been either privatized or liquidated during 2000-2002 pursuant to the Law "On State Program of 
Privatization" No. 1723-III of 18 May 2000.   
232. [The representative of Ukraine confirmed that  his Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges and would otherwise act in full conformity with the provisions of the 
WTO Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that 
Article and Article VIII of the GATS, and Article III and XI of the GATT 1994.  The Working Party 
took note of this commitment.]   WT/ACC/SPEC/UKR/5/Rev.2 
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 - Free zones, special economic areas 
233. The representative of Ukraine said that free ec onomic zones and priority development areas 
had been established to encourage investment in regions characterized by structural unemployment 
(mining regions and military areas) or undergoing structural changes following technical or environmental disasters, such as the Chernobyl accident.  The Crimea special investment regime aimed at promoting industrial production and investment in the public health and tourism sectors.  In 
addition, technological parks had been set up to  encourage investment, promote research, and 
encourage the development of new technologies.  He submitted detailed in formation on free economic 
zones and Territories of Priority Development with Special Regime of Investment Activity in Ukraine 
in Annex 9 of document WT/ACC/UKR/110/Add.1.  Additional information on free economic zones, 
priority development areas and technological parks is provided in document WT/ACC/UKR/116.   
234. Technological parks had been established for a period of 15 years starting on 1 January 2000 
pursuant to the Law "On Special Regime of Invest ment and Innovation Activity of Technology Parks" 
No. 991-XIV of 16 July 1999 and Cabinet of Ministers' Decree No. 2311 of 17 December 1999.  Benefits granted included import duty and internal  tax exemptions.  Materials, equipment and 
component parts used as inputs in investment proj ects could be imported duty free provided they were 
not produced locally or local products did not meet the technical requirements.  Any legal person or 
association of legal persons implementing investme nt and innovation projects aiming at developing 
high technology in priority areas were eligible fo r benefits.  Priority areas had been established 
pursuant to the Law "On Priority Directions  of Science and Technology" No. 2623-III of 
11 July 2001. 
235. Ukraine's free economic zones and priority development territories were regulated by the Law 
"On General Provisions Regarding the Creation and Functioning of Special Economic Zones" 
No. 2673-12 of 13 October 1992, as amended on 15 May 2003.  Each free zone or other special zone, 
having an economic regime other than the genera l economic regime applicable in Ukraine, was 
regulated though a specific Law as stipulated in Article 92 of the Constitution.   
236. Benefits granted under free economic zones ( FEZ) and priority development areas could 
include exemptions from profit, investment, and la nd tax, VAT and import duties, mandatory sale of 
foreign currency earnings (imposed temporar ily between September 1998 and March 1999), and 
certain fees (Tables 22(a) and 22(b)).  FEZ benefits were not limited to specific industrial sectors.  In the case of priority development ar eas, benefits were awarded to investments in priority economic 
activities, the list of which was determined by Reso lution of the Cabinet of Ministers.  Incentives 
were granted to duly approved investment projects implemented by any legal person registered in a WT/ACC/SPEC/UKR/5/Rev.2 
Page 82  
 
 FEZ territory or priority development area and upon payment of a registration fee in accordance with 
Resolution No. 1199 of 5 July 1999.  Investment pr ojects were approved by a management body after 
examination of the project's compatibility with th e objectives and economic priorities of the zone, its 
financial sustainability and contribution to economic, scientific, technological and social 
development, and upon justification of the amount and list of equipment, hardware and parts to be 
imported into the zone.  Minimum levels of invest ment were required in priority development areas 
and in some free economic zones (Tables 23(a) and 23(b)).   
Table 23(a):  Minimum investment leve ls in priority economic activities
 
 Investment Project Co st/Economic activities 
Priority Territories in 
Chernihiv Oblast At least: 
 
- US$200,000 – in agriculture, food-processing and agricultural produce processing 
industries, light industry, pulp and paper i ndustry, wood processing, furniture production, 
health protection and education; 
- US$300,000 – in construction, tour ist and recreation industry; and 
- US$500,000 – in extractive industry, machine and equipment building, non-metal mineral 
products, chemical production, transport. 
Volyn Oblast At least US$200,000 – in all priority business activities 
The city of Kharkiv At least: 
 
- US$3 million – in metallurgy and metal working, machine and equipment building, 
building of electrical, electronic and transport equipment; 
- US$1 million – in producing of electricity, gas, water, coke, other non-metal mineral 
products, in transport, communications, in metal waste and scrap working. 
- US$700,000 – in construction, sanitation, scavenging and wa ste working, in chemical 
production, furniture, pulp and paper industry, printing industry; and 
- US$500,000 - in food-processing and agricultur al products processing industry, textile and 
clothing industry, tanning and shoe manufact uring industry, in health protection and 
education, in public assistance and in resear ch and development in natural and technical 
sciences. 
Zhytomyr Oblast At least: 
 
- US$200,000 - in agriculture, food-processing in dustry, textile industry, pulp and paper 
industry, wood processing, furniture producti on, clothes and furs manufacturing, health 
protection and education; 
- US$300,000 – in construction; and 
- US$500,000 – in extractive industry, machine and equipment building,  mineral material 
products, chemical production, transport. 
the City of Shostka, 
Sumy Oblast At least: 
 
- US$200,000 - in food-processing industry an d agricultural products processing, wood 
processing and wood worki ng, health protection; 
- US$500,000 – in construction, waste working,  producing electricity by thermoelectric 
power station and in distribution of heat; and 
- US$1 million – in machine and equipment building, powder metallurgy and chemical 
production.  WT/ACC/SPEC/UKR/5/Rev.2 
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  Investment Project Co st/Economic activities 
Autonomous Republic 
of Crimea At least: 
 
- US$100,000 – in activity for protection of hist orical and natural resources, research and 
development in information infrastructure, cultu re and sport, consumer services, territory 
cleaning, forestry, production of s port and fancy goods, toys, souvenirs; 
- US$200,000 - in health protection and public a ssistance, in agriculture, fish industry, 
food-processing and agricultural produce pr ocessing industries, textile industry, wood 
working, furniture production; 
- US$500,000 – in activity of health and resort  centres, hotel and restaurant business, 
transport and communications, in  construction, waste working,  tourism services, rest and 
entertainment services; and 
- US$1 million – in extractive industry, pro cessing industry, electricity, gas and water 
production. 
Zakarpatska Oblast At least US$200,000 – in all priority business activities 
Luhansk Oblast At least: 
 
- US$500,000 - in agriculture, food-processing and agricultural produce processing 
industries, health protection; 
- US$700,000 – in construction and transport industry; and 
- US$1 million - in extractive industry, electrical energy and coke production, chemical 
production and machine building. 
Donetsk Oblast At least: 
 
- US$1 million (US$250,000 – for small enterprises) - in all priority business activities 
 
Table 23(b):  Minimum investment  levels in free economic zones  
FEZ Investment Project Cost 
Reni At least US$200,000 
Porto-franco at Odessa Commercial Sea Port At least US$1 million 
Slavutych At least US$200,000 
Port Crimea At least US$100,000 
Mykolayiv At least: 
 
US$500,000 – in food processing and agricultural produce processing 
industries; 
US$700,000 – in construction, en ergy and transportation; 
US$1 million – in machine building and instrument building; 
US$3 million – for shipbuilding industries.  
Yavoriv At least US$500,000 (except pr ojects involving technological park) 
 
237. In response to specific questions, he said that be nefits were not linked to export performance 
or local content.  He added that, pursuant to Resolution No. 1199 of 5 July 1999, an investor could, in the course of an investment project, give preference  to products (works and services) of Ukrainian 
origin in the event of similar price, term of completion, quality and compliance with international 
standards (section 3, sub-section 13).  However,  this provision was only a recommendation and had 
never been implemented.  In pr actice, investors in free economic zones and priority development 
areas were free to choose among imported and Ukrainia n products without prejudice to their right to 
benefit from incentives.  He added that his Gove rnment had prepared amendments to bring the 
language of Resolution No. 1199 into compliance with  WTO rules, thus eliminating the reference to 
preferences accorded to produc ts of Ukrainian origin.  WT/ACC/SPEC/UKR/5/Rev.2 
Page 84  
 
 238. A Member sought clarification about the extent to which goods manufactured in free zones 
were deemed to have transforme d imported inputs sufficiently to be exempted from customs duties 
and taxes.  The representative of Ukraine replied that, pursuant to Article 18 of the Law "On the 
Single Customs Tariff", sufficiently transformed goods included (i) finished goods, such as natural 
resources extracted within the special economic zone territory; plantation products grown on its soil; 
live animals bred in the zone; animal products pro duced within the zone; hunting, fishery and seafood 
products produced within the z one; seafood products extracted or produced in the world ocean by 
vessels of the given country, as well as by vessels leased or freighted by it; secondary raw materials and wastes generated through produc tion and other processes complete d within the zone; and goods 
manufactured in the zone exclusively with the pr oducts referred to above ; and (ii) adequately 
processed goods, i.e. goods classified in a tariff position other than the position of imported materials 
and products used for their produc tion and goods with an added value of at least 50 per cent.  Goods 
safety operations for transportation or storage, preparation for sale and transportation, simple 
assembling operations, and limited transformation opera tions were not considered sufficient working 
or processing. 
239. A Member noted that the provision according to which a product, in order to be transported 
duty free to the customs territory of Ukraine, had to be of FEZ origin, e.g. with a value added of at least 50 per cent, constituted a local content require ment and violated Article 3 of the Agreement on 
Subsidies and Countervailing Measures and Article  3.5 of the GATT 1994.  In response, the 
representative of Ukraine explained that goods im ported from free economic zones into the customs 
territory of Ukraine were subject to internal tax es as indicated in Table 24, but exempt from customs 
duties.  He acknowledged that this measure did not  conform to WTO rules.  His Government was 
considering alternative approaches.  
Table 24:  Importation of goods from free economic zones into the customs territory of Ukraine
 
Name of free 
economic zone Goods previously imported from outside of the customs 
territory of Ukraine Manufactured goods, including 
finished or sufficiently processed 
goods 
"Donetsk" All taxes and duties payable as applied to goods being imported VAT and ex cise duty are collected  
"Azov" All taxes and duties payable as applied to goods  being imported VAT and ex cise duty are collected  
"Zakarpattia" All taxes and duties payable as applied to goods being im ported VAT and excise duty are collected  
"Yavoriv" (auto-
port Krakovets) All taxes and duties payable as applied to goods being imported Import duty, VAT and excise duty 
are collected 
"Interport Kovel" All taxes and duties pa yable as applied to goods being importe d VAT and excise duty are collected  
"Mykolayiv" All taxes and duties payable as applied to  goods being imported Import duty, VAT and excise duty 
are collected 
"Porto-franco" All taxes and duties payable as applied to  goods being imported Import duty, VAT and excise duty 
are collected 
"Port Crimea" All taxes and duties paya ble as applied to goods being imported Import duty, VAT and excise duty 
are collected  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 85 
 
 
 Name of free 
economic zone Goods previously imported from outside of the customs 
territory of Ukraine Manufactured goods, including 
finished or sufficiently processed 
goods 
"Reni" All taxes and duties payable as applied to goods being imported Import duty, VAT and excise duty 
are collected 
"Slavutych" Special customs zone regime non-applicable 
"Kurortopolis 
Truskavets" Special customs zone regime non-applicable 
 
240. Some Members asked Ukraine to ensure that its domestic legislation on free economic zones 
and priority development areas would comply full y with WTO obligations upon accession, i.e. that 
normal taxes, tariffs, customs charges and other regulations would be a pplied to goods from those 
zones sold in the rest of Ukrain e, that the provision of benefits would not be contingent on export 
performance, trade balancing, or local content crite ria, and that the provisions of the WTO Agreement 
on Subsidies and Countervailing Measures, and of  the TRIMs and TRIPS Agreements would be 
observed.   
241. The representative of Ukraine replied that sev eral draft laws amending the current FEZ 
regime were under preparation.  They included (i ) a draft Law "On Amendment of Some Laws of 
Ukraine On Creation and Functioning of Special (F ree) Economic Zones and Application of Special 
Regimes of Investment Activity in the Territories of  Priority Development", which would modify the 
customs regime of the "Azov", "Donetsk", and "Zak arpattia" special economic zones.  A first draft 
had been rejected by the Rada.  The Cabinet of Ministers was currently examining a new draft Law, 
which ensured that the normal import regime – fu ll imposition of import duties, VAT and excise taxes 
– would be applied to goods from those zones.  According to the draft Law, goods, raw materials, 
articles and equipment would be granted certain exemptions when imported into special economic 
zones from outside the customs territory of Ukrain e for the implementation of investment projects – 
namely a VAT exemption for a maximum of two y ears (except for excisable goods) and an exemption 
from the payment of import duty for a maximum of fi ve years; (ii) draft Law No. 2569 of 28 March 
2003, which would cancel privileges applicable to agricultural goods of Chapters 1 to 24, annul 
import duty benefits for agricultural goods within th e special regimes of investment activity, and 
specify criteria for determining the level of processing – the draft was being discussed in the Rada 
Committees; and (iii) draft Law No. 3162 of 25 Fe bruary 2003 determining the level of processing – 
the draft had been returned to the Cabinet of Minist ers for further work after the first reading in May 
2003.  He added that a new draft Law "On Imposi ng the Moratorium for Consideration and Approval 
of New Investment Projects in Special Economic  Zones and Territories with Special Regime of 
Investment Activity" (No. 4229) had been submi tted to the Supreme Rada for consideration on 
6 October 2003.  The draft Law imposed a morato rium on the establishment of new special economic WT/ACC/SPEC/UKR/5/Rev.2 
Page 86  
 
 zones until 1 January 2010 - this moratorium had been integrated  in the Law "On the State Budget for 
2004" (Article 9) and would expire at the end of 2004.  As for the moratorium on the approval of new 
investment projects, which had been introduced pursu ant to Article 9 of the Law "On the State Budget 
for 2004", it had been lifted following the entry in to force of the Law No. 1801-IV "On Amendments 
to the Law on the State Budget for 2004" on 1 July 2004.  Consequently, draft Law No. 4229 was 
unlikely to come into force. 
242. Other recently adopted legislation include d Resolution No. 704 of 15 May 2003, which 
modified the Sample Agreement (Contract) for the implementation of investment projects in special 
economic zones and priority development areas;  Resolution No. 1435 of 10 September 2003, which 
established maximum volumes of imports into the cu stoms territory of Ukraine for certain meat 
products fully or sufficiently processed within the "Donetsk" zone; and Resolution No. 1368 of 
27 August 2003, which provided for mandatory expert examinations of changes made to investment 
projects to be carried out by central agencies of the executive power.  The Resolution prohibited 
volume increases of imported goods under Chapters 1 to 24 of the Ukrainian nomenclature and made 
the approval of investment projects subject to the con sent of all central agencies involved in the expert 
examination.  It also offered guarantees to special economic zone operators in the event of changes to 
the priority types list.  He noted that Resoluti on No. 146 of 11 February 2004, which restricted the 
import volumes from the Donetsk FEZ, had been can celled.  There were no plans to renew it. 
243. [The representative of Ukraine confirmed that the free zones or free economic zones would be 
administered in compliance with WTO provisions and that goods produced in these zones under tax 
and tariff provisions that exempt imports and imported inputs from tari ffs and certain taxes would be 
subject to normal customs formalities when entering the rest of Ukraine including the application of 
tariffs and taxes.  The Working Party took note of these commitments.] 
[The representative of Ukraine confirmed that the free zones or free ec onomic zones would be 
administered in compliance with WTO provisions, including the Agreements on TRIPS, TRIMS, and 
Subsidies and Countervailing Measures, and that goods produced in these zones under tax and tariff 
provisions that exempt imports and imported inputs fr om tariffs and certain taxes would be subject to 
normal customs formalities when entering the rest of Ukraine including the application of tariffs and 
taxes.  The Working Party took note of these commitments.] 
- Government-mandated counter-trade and barter 
244. A Member was concerned about the incidence of ba rter in Ukraine's foreign trade.  While the 
overall prevalence of barter had been reduced, bart er was still applied on a significant scale in Ukraine  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 87 
 
 
 and could affect up to 20 per cent of transactions occurring between Ukrainian parties in the sugar 
sector, particularly between beet producers and pro cessors/refiners.  This Member accordingly sought 
information on the steps Ukraine was taking to eliminat e barter practices in internal and international 
trade, and when such practices were expected to be completely eliminated.  Questions were also 
raised concerning the application of VAT or other internal taxes to barter transactions, and whether 
such measures conformed with the provisions of Arti cles I:1 and III:2 of the GATT 1994.  In addition, 
a Member sought information about the licensing requirements affecting barter transactions. 
245. The representative of Ukraine replied that ba rter trade was regulated by the Law "On 
Regulation of Goods Exchange (Barter) Transacti ons in Foreign Economic Area" No. 351-XVI of 
23 December 1998.  The incidence of barter in fo reign trade transactions had declined rapidly in 
recent years and represented no more than 0.1 per cen t of Ukraine's imports and exports in 2002.  In 
manufacturing, where barter operations had accounted  for more than 40 per cent of the transaction 
settlements in 1998, the share of barter had falle n to 2.2 per cent in early 2003.  Specifically 
concerning the sugar sector, the share of barter tr ansactions had amounted to 5 per cent in sales of 
sugar beet in 2002, and less than 10 per cent fo r sugar sold by agricultural enterprises.   
246. Ukraine had applied a special procedure in the determination of tax credit and tax liability to 
discourage barter operations.  However, this pro cedure had been abolished according to the Law "On 
Amendments to the Law of Ukraine "On Value Added Tax"" No. 469-IV of 16 January 2003, and 
barter was now treated on par with other commerc ial transactions.  The Law "On the 2003 National 
Budget of Ukraine" (Article 7) stipulated th at for goods, works and services exported from the 
customs territory of Ukraine as part of a barter tran saction, VAT paid (calculated) in connection with 
the purchase of goods (or works or services) would not gi ve rise to an increase of the tax credit, and 
would be included in the total gross production (turnove r) costs of the taxpayer.  This rule had been 
extended by the Law "On the State Budget of Ukraine for the Year 2004".   
247. The representative of Ukraine confirmed that ba rter transactions as such were not subject 
licensing.  Licensing, including the licensing of barter transactions, was applicable only to goods, which were subject to licensing. 
- Government procurement 
248. The representative of Ukraine said that the ag ency responsible for the implementation of 
Ukraine's government procurement policy was the Department for Coordination of Government 
Procurement and Government Orders  of the Ministry of Economy established in 1998.  In recent 
years, efforts had focused on developing and impr oving government procurement legislation, training WT/ACC/SPEC/UKR/5/Rev.2 
Page 88  
 
 personnel, and disseminating information.  He submitted a Memorandum on the purchase of goods, 
works, and services in document WT/ACC/UKR/74.  Ho wever, the system had been modified in 2000 
with the adoption of the Law "On Procurement of Goods, Works, and Services" No. 1490-III of 
22 February 2000.  The Law was based on the UNC ITRAL model law on government procurement 
and incorporated provisions of the WTO Agreem ent on Government Procurement and European 
Union Directives.  It provided for a single government procurement system.  The Law regulated 
tendering procedures to be applied in public proc urements financed by the State budget and local-
government budgets, as well as expenses of non-budget fu nds and credits secured by the Cabinet of 
Ministers.  The Law established thresholds (equi valent to €2,000 for goods and services and €100,000 
for works) for procurements to be effected by tender in compliance with the procedures and requirements of the Law.  Purchases for State needs were limited to the Government's own 
consumption.   
249. Ukraine operated a decentralized government pr ocurement system whereby procurement was 
carried out directly by the purchasing entity, i.e. the State power authorities, local self-government bodies and institutions reporting to them, social insurance funds, the Pension Fund, the National 
Bank, as well as enterprises and organizations fund ed by State and local budgets.  The purchasing 
entity established a tender committee, responsible fo r ensuring optimal utilization of public funds by 
organizing open tenders in a competitive environmen t.  The Law stipulated the conduct of sequential 
steps such as (i) the invitation to participate in  a tender; (ii) the ela boration of detailed tender 
documents containing clear, impartial and accurate  specifications; (iii) objective evaluation of the 
conformity with the established criteria; (iv) the inadmissibility of negotiations between the procuring 
entity and the successful bidder; and (v) the c onclusion of a Procurement Agreement.   
250. Article 5 of the Law, which stipulated the pr inciple of non-discrimination, had been aligned 
with universally acceptable international norms and practice.  The Law accordingly maintained that 
no supplier could be excluded from a State procurem ent procedure based on national affiliation, and 
transparent and fair bidding procedures enabled th e selection of the most economical proposal.  In 
addition, Article 6 of the Law introduced price pr eferences for domestic producers relative to foreign 
suppliers.   
251. The Law also included provisions concerning the review of complaints.  These matters were 
addressed in Chapter VII of the Law – "Appealin g the Applied Procurements Procedures".  The 
receipt of a complaint served as sufficient ground s for an inspection conducted by a competent 
authority as well as controlling agency.  A decision would be taken to abrogate the tender if the alleged violations were proved.  Should a substantiated complaint be recognized as unsatisfied  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 89 
 
 
 because the procuring entity had entered into a pr ocurement agreement prior to the filing of the 
complaint, then the materials of the case could be submitted to the competent controlling agencies 
and, in individual cases, to the law enforcement bodi es.  Any party objecting to a decision rendered by 
a competent authority could appeal the d ecision according to applicable law.   
252. The Ministry of Economy had launched an in formation and analytical bulletin "Visnyk 
Derzhavnykh Zakupivel" (Governme nt Procurements Newsletter) in  November 1998.  The bulletin 
provided relevant information to those participa ting in government procurement processes, and could 
be accessed by all business entities interested in  submitting bids for the procurement of goods, 
services and works by the State.  In accordance wi th the Law, the bulletin published all open tender 
invitations as well as the outcome of the tende rs.  In addition, data concerning government 
procurement tenders were posted on the offici al web-site of the Ministry of Economy 
(www.me.gov.ua) and on the Government's web-por tal (www.kmu.gov.ua), as well as on the home 
pages of the purchasing entities.   
253. Some Members urged Ukraine to initiate negotia tions to join the Agreement on Government 
Procurement after accession.  In the interim, pr ocurement should be conducted in a transparent 
manner and MFN treatment should be applied when  tenders were opened to foreign goods and 
bidders.   
254. The representative of Ukraine confirmed th at upon WTO accession, Ukraine would start 
negotiations on the accession to the Government Proc urement Agreement.  [Ukraine would become 
observer to the GPA at the time of accession to th e WTO and start GPA negotiations by requesting 
membership and tabling an entities o ffer [one year after][immediately after accession].  He confirmed 
that Ukraine would conduct procurement in a tran sparent manner and apply MFN treatment providing 
all foreign suppliers with equal opportunity to participate in that  procurement pursuant to the principle 
of MFN treatment, i.e., if a proc urement was opened to foreign supp liers, all foreign suppliers would 
be provided with equal opportunity to participate in  that procurement.  The Working Party took note 
of these commitments.]   
- Trade in civil aircraft 
255. A Member sought a commitment from Ukraine to  join the Agreement on Trade in Civil 
Aircraft upon accession to the WTO.  The representa tive of Ukraine replied that his Government 
intended to join the Agreement on Trade in Civil Aircraft in 2010. WT/ACC/SPEC/UKR/5/Rev.2 
Page 90  
 
 - Transit 
256. The representative of Ukraine said that transit of  goods through the territory of Ukraine was 
regulated by the Law "On Cargoes in Transit" No. 1172-XIV of 20 October 1999.  In his view, the 
Law fully complied with Article V of the GATT 1994.   "Cargoes in transit" were understood as 
shipments by transport means in transit subject to  customs control through the Ukrainian territory 
between two points of entry or within one point − temporary storage of goods in warehouses, customs 
terminals, etc.  The Law guaranteed the freedom of transit and did not include any restrictions nor 
distinctions based on the flag of vessels, the place of origin, shipping, entry, de parture, or destination, 
or on any circumstances that related to the ownershi p of goods, ships, or other means of transport, in 
conformity with Article V:2 of the GATT 1994.  The Law provided for MFN treatment of goods in 
transit.  Pursuant to Article 157 of the new Cust oms Code, goods in transit could be moved along the 
routes determined freely by the carriers.  However, the Cabinet of Ministers could set restrictions on 
the displacement of excisable goods in transit (alcoholic beverages and tobacco products) along 
specific routes and through designated points of entr y at the customs border, as well as deadlines for 
transit of such goods by motorway or railway (Resolutions No. 484 of 6 May 1996 and No. 938 of 
12 August 1996).   
257. Some Members noted that the Ukrainian au thorities could impose specific routes for the 
transit of excisable goods, and questioned whether th is provision was compatible with Article V:2 
(first sentence) of the GATT 1994.  It was argued th at the government would not always be aware of 
what the most convenient route for a given economic  operator might be.  Moreover, Articles V:3 and 
V:4 allowed only reasonable charges for transporta tion or those commensurate with administrative 
expenses entailed by transit or with the cost of the services rendered.  In addition, Articles V:5 and 
V:6 mandated "treatment no less favourable" rather th an "equal treatment" to be accorded to traffic in 
transit.   
258. The representative of Ukraine replied that Artic le 201 of the Customs Code stipulated that 
carriers chose the most economical transit routes pr ovided that requirements determined pursuant to 
the Customs Code were complied with.  The Cabinet of Ministers' Resolution No. 938 of 
12 August 1996 (with changes and amendments) speci fied the designated border crossing points for 
the importation and exportation of excisable goods.  He  noted that Article V:2 of the GATT stipulated 
freedom of transit via the routes most convenient for international transit which, in his opinion, confirmed the right of WTO Members to impose a "convenient route".  Ukraine had designated such 
routes for specific types of goods to prevent circumvention of controls on excisable goods.  He confirmed that goods in transit were exempt from du ties, fees, and taxes, except for the unified fee  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 91 
 
 
 (Table 10(b)), which in his opinion corresponded to the cost of transit.  The unified fee was not 
collected on empty railway cargo cars crossing the territory of Ukraine.  Motor vehicles and 
containers crossing the Ukrainian border without cargo were subject to one fifth of the fee stipulated 
according to Article 5 of the Law "On the Unified F ee that is charged at Customs Points of Entry 
through the Ukrainian State Border".  The fee for u sage of Ukrainian highways was collected in full.  
Goods from any country were carried through Ukrain ian territory on equal te rms, and Ukrainian law 
did not provide for limitations regarding the MFN tr eatment of transit shipments.  He considered 
Ukraine to be in full compliance with the provisi ons of Articles V:5 and V:6 of the GATT 1994.   
259. Transit cargoes were subject to simplified and express control procedures (Article 9 of the 
Law).  Controls could not be interrupted and - in  the event of agreements with neighbouring states - 
they were performed jointly.  The delivery of goods could be subject to security measures including a 
guarantee issued by the owner of the goods and vehicles or an authorized person to the customs 
authority; escort by the customs authority; ca rriage of the goods by the customs carrier; or 
transportation of the goods under the conditions of  the 1975 Convention of TIR (Article 161 of the 
Customs Code).  These guarantee measures were co mpulsory (Article 165 of the Customs Code) for 
excisable goods.  Asked whether the security meas ures could be imposed on products other than 
excisable goods and for what justification, the representative of Ukraine said that the security 
measures aimed at guaranteeing the arrival of such g oods at a designated customs office, and that the 
type of guarantee to be provided was chosen by th e owner or the goods or his representative pursuant 
to Article 165 of the Customs Code and Cabinet of  Ministers' Resolution No. 700 "On the Regulation 
on the Furnishing to Ukrainian Customs Authorities of Financial Guarantees regarding the Mandatory 
Delivery of Goods to Designated Customs Offices" of 29 June 1996.   
260. The time limit for the shipment of goods to the destination customs authority was established 
by the entry customs authority in  accordance with Ukrainian standard s for cargo transportation and on 
the basis of the itinerary, transport means, distance and other shipment conditions.  The time limit did 
not include the period of storage in warehouses due  to the reloading of the goods into another 
transport means, nor the time period required fo r other cargo handling operations allowed by the 
customs authorities.  In his view, these provision s provided for a reasonable deadline for transit as 
stipulated in Article V:4 of the GATT 1994.  He added that the Law did not include any specific 
requirements for aircraft in transit.  Goods in ai r transit and cargoes were subject to normal customs 
controls and clearance (Chapter 33 of the new Customs Code). 
261. In response to a specific question, he noted th at pursuant to Article 200 of the Customs Code, 
Ukraine's transit customs regime covered both vehicl es and cargo in transit.  Therefore, an empty WT/ACC/SPEC/UKR/5/Rev.2 
Page 92  
 
 truck transiting through the territory of Ukraine woul d be subject to transit customs procedures, but no 
cargo customs declaration would be issued. 
262. [The representative of Ukraine confirmed that on accession his Government would ensure 
that Ukraine's laws and regulations governing tran sit operations would be in  conformity with the 
provisions of the WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this commitment.] 
- Agricultural policies 
(a) Imports 
263. The representative of Ukraine said that agricultura l products were subject to ordinary customs 
duties.  Quantitative restrictions were no longer applied on any agricultural products.  The Supreme 
Rada had authorized tariff rate quotas for the impor tation of raw cane sugar to talling 560,000 tons in 
2003, and a tariff rate quota of 125,000  tons had been opened for 2004, as indicated in Table 9.  No 
normative acts had been prepared for the introd uction of tariff rate quotas in 2005 (see the section 
"Tariff rate quotas, tariff exemptions").  
(b)  Exports 
264. The representative of Ukraine said that live cattle  and sheep, oilseeds, and certain hides and 
skins, were subject to export duty (see th e section "Export regulations" for details).  
(c) Internal policies 
[Ukraine has submitted data on domes tic support and export subsidies in agriculture for the period 
1994-1996 in documents WT/ACC/SPEC/UKR/1 and its Revisions 2, 3, 4, 7 and 8, for the period 
1997-1999 in documents WT/ACC/SPEC/UKR/1/Rev.5 and 6, and for the period 2000-2002 in Annex 10 of document WT/ACC/UKR/110/Add.2.  Revised information, covering both 1994-96 as well as 2002-2002 has been provided in document WT/ACC/S PEC/UKR/1/Rev.9.  Information "on the need 
for annual State support ("Amber box measures")" has been presented in Annex 11 of document 
WT/ACC/UKR/110/Add.1.]   
265. The representative of Ukraine said that importa nt measures had been undertaken over the past 
few years to create a more favourable economic envi ronment and raise the efficiency of agricultural 
enterprises.  A new land Code had been adopted in 2001, which recognized the legal right to own land 
and thereby facilitated the privatiza tion of land for agricultural purposes.  At the end of 2001, some  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 93 
 
 
 37,600 private farmers owned 2 millio n hectares of agricultural land − and 20.7 million hectares were 
leased − and about 7,000 agro-industrial enterprises (State farms, processing enterprises, agrarian 
service and construction enterprises) had been priva tized.  Mandatory insurance of agricultural crops 
and plantations had been introduced in 2001 and the infrastructure related to agricultural markets had 
been improved.  Institutions had been developed to provide consultancy and advisory services and 
education to farmers.  He provided a list of la ws and regulations relate d to Ukraine's domestic 
agricultural policies in document WT/ACC/UKR/110 /Add.2, Item 164, and presented information on 
reforms in the agrarian sector in document WT/ACC/UKR/96/Rev.1.   
266. A new Law "On State Support to Agriculture in Ukraine" No. 1877-IV had been adopted on 
24 June 2004.  The Law contained provisions on state support for agriculture, including animal (husbandry) products and beet sugar production.  Provisions of other normative and legal acts 
remained in effect, insofar as these did not c ontradict the provisions of the new Law.  
267. Some Members raised concerns regarding the new Law "On State Support to Agriculture in 
Ukraine", noting that some of its provisions governing inter alia  the imposition of import quotas 
(Article 8.6(d)), as well as the use of minimum impo rt prices (Article 8.8.1(a)), were not consistent 
with WTO requirements.  The representative of Ukra ine replied that Ukraine would amend this Law 
prior to WTO accession.  He added that according to the new Law, minimum import purchase prices 
were used as an indicator for triggering market  intervention aimed at supporting domestic agricultural 
producers.  As such, these measures could only be applied to imports temporarily if the Antimonopoly 
Committee concluded that the competitive operation of  the market was threatened and the Cabinet of 
Ministers endorsed that finding. 
268. Domestic support in addition to "green box me asures" was mainly provided in the form of 
support prices for specific agricultural products, such  as sugar beet, cattle, sugar, poultry, pigs, sheep 
and goats, and milk.  Ukraine also provided some non-product-specific support in the form of partial 
reimbursement of the cost of complex agricultura l equipment and subsidized credit from commercial 
banks, support to individual fa rmers, maintenance of young or chards, reduction in the fixed 
agricultural tax, write-off of loan advances and tax arrears, and accumulation of VAT for purchases of inputs.  In response to a specific question, he confirmed that his Government did not maintain any 
internal quantitative restrictions on the pu rchase and sale of agricultural products. 
269. Some Members noted that, considering that Ukraine's accession negotiations had extended 
over a number of years, a recent and representative b ase period would need to be adopted as a basis 
for appropriate commitments.  The representative of Ukraine said that Ukraine had provided a 
rationale for its choice of base period in Annex 11 of document WT/ACC/UKR/110/Add.1.  He asked WT/ACC/SPEC/UKR/5/Rev.2 
Page 94  
 
 Members to take into account the arguments prese nted therein, while showing consideration for 
Ukraine's situation in the context of its transition to a market economy, as well as the particular 
difficulties facing its agricultural sector.  
270. Priority areas in agrarian reform in the co ming years included administrative reforms to 
improve the State management and regulation of agro-industrial enterprises and to support private 
initiative; land reform to promote the developmen t of a land market and improve land and property 
regulation; the provision of medium and long-term low interest credit to ag ricultural enterprises and 
development of the legal basis for insurance of agricultural activities; the development of 
entrepreneurship and markets through the prom otion of investment, innovation and technologies 
available to agricultural producers due to a favourab le tax and investment environment, to promote 
agricultural advisory services and support land owner associations, and the development of 
advertising and other marketing services; the social  development of rural areas, the establishment of 
social protection for the rural population, and job and skills enhancement programmes; and the 
development of measures to support exports of agricultural products and harmonize domestic trade 
laws with WTO requirements. 
271. A Member expressed deep concerns with regard to  Ukraine's sugar policies.  In particular, the 
establishment of a tariff rate quota for the supply of  refined sugar onto the domestic market for a 
period from 1 September 2003 to 1 September 2004, pursuant to Resolution No. 1977 of 25 December 2002, appeared to constitute a prohibite d quantitative restriction under Article XI of the 
GATT 1994 and a prohibited TRIM.  This Member not ed that Ukraine had not implemented tariff-
rate quotas on sugar previously, thus the introduc tion of such a measure violated the standstill 
expectation.  In addition, Ukraine's mandatory expo rtation requirement for sugar refined domestically 
from raw sugar of foreign origin seemed inconsis tent with the provisions of Article 4 of the 
Agreement on Agriculture and Article XI:4 of the GATT 1994.  Finally, the use of minimum internal 
prices for refined sugar, set at a level almost twi ce as high as the average world price and maintained 
by means of registration requirements, inspecti on and penalties for non-compliance, combined with 
the mandatory export requirement for refined sugar,  afforded support to sugar processors contingent 
on local content and therefore constituted a prohibited subsidy in the meaning of Article 3.1(b) of the 
Agreement on Subsidies and Countervailing Measures.  By according less favourable treatment to 
imported raw sugar vis-à-vis its competitor (beet suga r), this measure violated Article III:4 of the 
GATT 1994.  This Member asked Ukraine to justif y the attestation, registration and inspection 
requirements applied to sugar refini ng plants and to explain in detail the functioning of the internal 
quota on sugar.  Ukraine was requested to elimin ate the internal quota, the mandatory exportation 
requirement, and internal minimum prices on sugar.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 95 
 
 
 272. The representative of Ukraine replied that R esolution No. 1977 of 25 December 2002 had 
introduced a production quota for refined sugar from 1 September 2003 to 1 September 2004, not a 
tariff rate quota for the sale of refined sugar in the domestic market.  Domestic  legislation determined 
the production quota (A quota) for refined sugar to be sold in the domestic market and not to be 
exported.  In addition, a B quota was stipulated  for supplies outside Ukraine under international 
contracts, on price terms determined by these contracts.  A third quota – the C quota – amounted to 
sugar produced in excess of the A and B quotas, and thus  to be sold exclusively outside Ukraine.  In 
his opinion, the A quota could not be viewed as an import restriction nor as an obstacle to importation.  He also noted that 1997 Ukraine had not exported refined sugar under international 
agreements (B quota) since 1997.  Sugar owners  (business entities operating in the sugar market) 
determined the volumes of sugar export sales in dependently (C quota), taking due account of the 
resources needed to fulfil their obligations under the A and B quotas.  Owners were not obliged to 
supply the A and B quotas before they were allowed to  export under the C quota.  He added that the B 
and C quotas had never been set by the government.  The production quotas for the sale of sugar were 
established with the aim to ensure that domestic sugar beet production re mained cost efficient.  Sugar 
processors were allowed to decide the quantity of sugar beet they purchased, as long as their 
purchases were made at prices which were not below the established minimum.  Since the relevant legislation had been in effect, however, the quan tity of sugar beet purchased by processors had never 
exceeded the volume required for fulfilling their s ugar production quotas.  Thus, processors had paid 
the mandatory minimum price for their purchases of  sugar beet, effective within the A quota.  
Processors could purchase raw cane sugar, and refine and/or sell sugar of cane origin, even while beet 
was available for purchase and the processors' produc tion quota (A quota) had not been filled.  
Processors could not transfer production quotas between themselves at their own discretion.  Ukraine 
did not consider the production quota a prohibited quan titative restriction, as defined by Article XI of 
the GATT 1994 and banned according to the Agreemen t on Trade-Related Investment Measures (see 
also the section on "Trade-Related Investment Measures"). 
273. He added that imported refine d sugar, as well as refined s ugar produced domestically from 
imported raw (cane) sugar, were sold on the intern al market at market prices.  However, as the 
volumes of imported refined suga r and domestically-refined importe d raw sugar were very small 
relative to domestic production, im ports could not influence the domestic market price level.  Thus, 
the domestic market price for sugar was effectively de termined by the minimum price.  There were no 
import restrictions or restrictions of any kind on th e internal purchase/sale of imported refined sugar.  
He also confirmed that minimum import prices for ra w cane sugar had never been  applied.  He did not 
consider the use of internal minimum prices on s ugar to be inconsistent with Article 4 of the 
Agreement on Agriculture, Articles III:4 and XI:4 of  the GATT 1994, nor with Article 3.1(b) of the WT/ACC/SPEC/UKR/5/Rev.2 
Page 96  
 
 Agreement on Subsidies and Countervailing Measures.  Table 25 contains information on Ukrainian 
imports of refined sugar for 2003-2004 (see also the section on "Pricing Policies").  
Table 25: Imports of white sugar during the period 1 September 2003 – 31 August 2004
 
2003 2004 
Country Sept Oct Nov Dec Jan Feb March 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 
Note: Average unit import price for refined sugar ( с.i.f. basis) for the 2003/04 marketing ye ar: Georgia – US$350 per ton; Kazakhstan – 
US$348 per ton; Lithuania – US$249 per ton; Po land – US$230 per ton  (general conditions applied, i.e. importers paid an import  
duty of €300 per ton and VAT).    Source: Derzhkomstat. 
 
274. He noted that the Resolution "On Measures to En sure that the Domestic Market is Supplied 
with Domestic Sugar and is Protected Against Un authorized Imports" No. 494-p of 29 August 2002 
provided for registration of sugar producers, a llocated sugar quantities and established permanent 
control over wholesale prices for sugar.  State regist ration had been effectively introduced pursuant to 
Order No. 335 of 17 October 2002.  State Registra tion Certificates for sugar refining plants were 
delivered after inspection and attestation by the Co mmission for Attestation and State Registration of 
Sugar Refining Plants.  Attestations were valid for one year.  The Commission was composed of 
representatives of the Chief Departments for Agricu lture and Food, the State Technical Supervision 
Inspectorates of the Oblast State Administrations , the oblast Sugar Industry Associations, the State 
Sanitary and Epidemiological Service, and, dependi ng on the location of the sugar refining plants, of 
other specialists and advisors (upon their consent).  State registration opened the right to participate in 
tenders for the allocation of sugar production wi thin the A and B quotas.  He confirmed that 
participants in tenders were re quired to undergo comprehensive inspections every five years.  
Inspections included an analysis of the producti on process (cultivation, collection, acceptance and 
storage of sugar beet, modernization, energy cons umption and thermal indicators, water balance and 
use of water, degree of production automation, orga nization of labour, and environmental indicators) 
and the formulation of proposals by the inspectors to improve and develop the production.  He added 
that these measures aimed at raising the efficiency of beet production and processing.  In his view, 
they could not be regarded as restrictions on th e importation of raw cane sugar and exportation of 
refined sugar.   
275. He acknowledged that Article 3.11 of the Law "On State Regulation of Sugar Production and 
Sale" No. 758-XIV of 17 June 1999 stated that sugar could be produced in Ukraine from imported 
raw materials on the exclusive condition that the en tire output of the finished products be exported  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 97 
 
 
 within time periods specified by Ukraine's legisla tion.  The provision extended only to sugar produced 
from imported raw materials, not to the product as su ch.  His Government intended to amend the Law 
"On State Regulation of Sugar Producti on and Sale" in order to cancel th is rule (see also section on 
"Trade-Related Investment Measures").     
276. He added that under the "give-and-take" raw ma terials system, once the finished product had 
been re-exported, import duties were no longe r due on the initial import of raw materials.   Since the 
minimum price requirement did not apply to this system, sugar produced through the "give-and-take" 
arrangement was exported at a price which was lower than the domestic price.  In reply to a specific 
question, he said that the "give-and-take system" was not applied under the import tariff quota regime.  
He also confirmed that Ukraine had no informa tion about the existence of any arrangements for 
refining "give-and-take" raw sugar of  Ukra inian origin in neighbouring countries. 
277. In response to specific questions he acknow ledged that upon accession, Ukraine intended to 
have in place a WTO-compliant system for an ti-dumping and countervailing measures.  Ukraine 
would be prepared to use this system against im ports of refined sugar pr oduced below normal cost, 
that may originate from any trading partner.  He al so confirmed that Ukraine did not benefit from any 
reciprocal commitments from countries in exchange  for the importation of refined sugar originating 
from their territories.  He finally noted that Ukraine had stopped exporting sugar beets in 1997. 
278. The representative of Ukraine agreed that, upon Ukraine's accession, his country would bind 
its agricultural export subsidies at zero in its Sc hedule of Concessions a nd Commitments for Goods, 
and would not maintain or apply agricultural e xport subsidies as defined in paragraphs 1 ( а)-(f) of 
Article 9 of the Agreement on Agriculture.  He al so confirmed that Ukraine would not seek recourse 
to the special safeguard provisions (SSGs) of  Article 5 of the Agreement on Agriculture.  
- Textiles regime  
279. The representative of Ukraine said that export li cences were issued for textile products falling 
within categories 435, 442, 444 and 448 exported to the United States.  Pursuant to Resolution 
No. 1722 of the Cabinet of Ministers of 23 Decemb er 2004 "On Approval of th e List of Goods Export 
and Import of which is Subject to Licensing and Falling under Quotas in 2005", export licences were 
no longer issued for textile products falling within cate gories 2, 2(a), 4, 5, 6, 7, 8, 12, 13, 15, 26/27, 
29, 83, and 117 exported to the EU. WT/ACC/SPEC/UKR/5/Rev.2 
Page 98  
 
 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- General 
(a) Industrial property protection 
280. The representative of Ukraine said that his Gove rnment paid considerable attention to the 
effective protection of intellectual property.  Ten sp ecific laws regulated intellectual property rights in 
Ukraine, and Ukraine participated in 18 multilateral tr eaties regulating the area.  In total, nearly 100 
bylaws and regulations regulated in tellectual property rights in Ukraine.  Important efforts had been 
made over the past years to bring Ukraine's legisl ation on intellectual property rights closer to the 
standards set by the WTO.  In 2001-2002, a new Cr iminal Code had been adopted and the Code on 
Administrative Violations had been amended to re inforce criminal and administrative liability for 
violation of intellectual property rights.  New Civil, Commercial and Customs Codes had been 
approved during 2002-2003.  During this period, the Cabinet of Ministers had also adopted 14 
resolutions for the prevention of manufacturing a nd distribution of counte rfeited goods, and six laws 
pertaining to intellectual property had been approve d.  The Supreme Rada was presently considering 
several draft laws which would amend legislation on audiovisual works and phonograms, copyright 
and related rights, and licensing a nd supervision of imports and expor ts of discs for laser-readable 
systems.   
281. He considered that with these legislative ad justments, in particular the adoption on 
22 May 2003 of the Law "On Amendments to Cert ain Laws with Respect to Legal Protection of 
Intellectual Property Rights", Ukraine's legislation on intellectual property rights had been brought 
into compliance with the TRIPS Ag reement.  He added that effort s would be made to improve the 
legislative and institutional framework furthe r.  He provided detailed information on the 
implementation of the TRIPS Agreement in documents WT/ACC/UKR/ 94, WT/ACC/UKR/102 and 
Rev.1, WT/ACC/UKR/112 and WT/ACC/UKR/117, a nd a comparative table of compliance of the 
national legislation with the TRIPS Agreement in documents WT/ACC/UKR/95 and 
WT/ACC/UKR/123.  Asked about the newly adopted Ci vil Code of Ukraine (Book Four) and its role 
in Ukraine's implementation of the requirements of the TRIPS Agreement, the representative of 
Ukraine referred to the information c ontained in documents WT/ACC/UKR/112 and 
WT/ACC/UKR/117.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 99 
 
 
 (b) Responsible agencies for policy formulation and implementation 
282. The representative of Ukraine said that the St ate Department for Intellectual Property was 
responsible for the formulation and implementation of Ukraine's intellectual property policy.  In 2002, 
his Government had established the "Intelzakhyst", an  office in charge of issuing control stamps for 
audio and audiovisual products and maintaining Ukraine's Integrated Register of Control Stamps Recipients.  A special subdivision of the Departme nt, composed of State inspectors, had also been 
created to combat manufacturing and distribution of  counterfeit goods, in particular discs for laser-
readable systems.  The State inspectors could dr aw up reports of administrative offences.  They 
worked in close cooperation with the Ministry of In ternal Affairs, the State Tax Administration, and 
the State Customs Service.  His Government w as now considering the establishment of a research 
institution within the Ministry of Justice for the t echnical examination of intellectual property objects. 
283. Measures had also been taken to strengthen the judicial institutional framework for the 
enforcement of intellectual property rights and establis h a specialized Patents Court, as provided for in 
the Law "On the Judiciary of Ukraine".  In 2002, speci al boards of justice had been created within the 
Supreme Commercial Court of Ukraine, the commerc ial courts of Kiev and Sevastopol, the oblasts, 
and the Republic of Crimea, and within commercial courts of appeal to deal specifically with 
intellectual property cases.  Subsequently, specia lized chambers within the Supreme Commercial 
Court and the commercial courts of appeal  had been established in March 2003.   
(c) Participation in international intellectual property agreements 
284. The representative of Ukraine said that Ukraine was a founder member of the World 
Intellectual Property Organisation (WIPO) and ha d adhered without reservations to the Berne 
Convention for the Protection of Literary and Artistic Works; the 1952 World Copyright Convention; the Geneva Convention for the Protection of Pr oducers of Phonograms Against Unauthorized 
Duplication of Their Phonograms; the Rome Conve ntion for the Protection of Rights of Phonograms 
Performers, Producers and Broadcasting Organizations; the WIPO Treaties on Copyright and 
Performances and Phonograms; the Paris Conventi on for the Protection of Industrial Property of 
20 March 1883; the Madrid Agreement Concerning the International Registration of Marks and its 
Protocol of 28 June 1989; the Nice Agreement On International Classification of Goods and Services 
for the purposes of Marks Registration; the Tr ademark Law Treaty; the Nairobi Treaty on the 
Protection of the Olympic Symbol; the Patent Cooperation Treaty; the Budapest Treaty on the International Recognition of the Deposit of Microorga nisms for the Purposes of Patent Procedure; the 
Patent Law Treaty; The Hague Agreement On Inte rnational Registration of Industrial Designs; and 
the International Agreement on the Protection of New Plant Varieties.  In addition, his Government WT/ACC/SPEC/UKR/5/Rev.2 
Page 100  
 
 cooperated with a number of regional and intern ational organizations de aling with intellectual 
property protection, such as the NIS Interstate Intellectual Property Protection Council; the European 
Patent Organization; the International Industrial Pr operty Protection Association; the International 
Federation of Patent Attorneys; the Licensing Unio n; the International Association of Trade Marks 
Owners; the International Federation of Phonogram  Producers; and the International Federation of 
Authors and Composers Partnerships. 
285. He added that his Government planned to ratify the Strasbourg Agreement Concerning the 
International Patent Classification, the Locar no Agreement Establishing an International 
Classification for Industrial Designs, and the Vie nna Agreement Establishing an International 
Classification of the Figurative Elements of Marks,  and intended to join most of the agreements 
administered by WIPO and UNESCO.  Ukraine ha d not signed the Brussels Convention Relating to 
the Distribution of Programme-Carrying Signals by Satellite, but would examine the commitments 
ensuing from the Brussels Convention as well as the possibility of acceding to this Convention.   
(d) Application of national and MF N treatment to foreign nationals 
286. The representative of Ukraine said that national and MFN treatm ent was granted under 
Article 423 of the Civil Procedure Code, Article 5 of the Law "On inventions and utility models" 
No. 3687-XII of 15 December 1993, Article 4 of th e Law "On industrial designs" No. 3688-XII of 
15 December 1993, Article 4 of the Law "On trademarks" No. 3689-XII of 15 December 1993, 
Article 6 of the Law "On copyrights and related ri ghts" No. 2627-III of 11 July 2001, Article 5 of the 
Law "On origin of goods" No. 752-XIV of 16 June 1999, and Article 3 of the Law "On integrated 
circuits" No. 621/97 of 5 November 1997. 
287. A Member noted that the Ukraine's legislation did not afford national or MFN treatment to 
foreign geographical indications, by requiring a bila teral agreement to be c oncluded between Ukraine 
and the foreign country where the GI was located, for each separate foreign GI for which protection 
was sought in Ukraine, while Ukrainian GIs benef ited from a registration system through which they 
received protection.  This was in clear violation of Articles 3 and 4 of TRIPS, concerning national 
treatment and MFN, as well as Article 2 of the Paris Convention. 
288. In response, the representative of Ukraine said that the Law "On the Protection of Rights to 
Trademarks, Geographic Indications and Trade Names"  was in preparation.  The draft Law contained 
a paragraph stating that "[g]eogra phical indication related to a geogra phical location in a foreign state 
shall not be recognized in Ukraine if: the right to this geographical indication is not protected in a 
foreign state concerned and/or Ukraine did not conc lude a relevant agreement with a foreign state  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 101 
 
 
 concerning the mutual protection of rights to this type of geographical indication".  In his opinion 
such a provision would be in full compliance with Articles 3 and 4 of TRIPS, as well as Article 2 of 
the Paris Convention.  
(e) Fees and taxes 
[to be completed] 
2. Substantive Standards of Protection, Incl uding Procedures for the Acquisition and 
Maintenance of Intellectual Property Rights 
(a) Copyright and related rights 
289. The representative of Ukraine said that copyright  protection was regulated by Ukraine's Civil 
Code and the Law "On Copyright and Related Rights" No. 3792-XII of 23 December 1993, as 
amended.  The Law provided for the administra tion of copyright through collective management 
organizations.  As of early 2004, there were eight  collective management organizations responsible 
for the collection, distribution and payment of royalties for the use of copyright and/or related rights, in particular rights of authors of musical works, a udiovisual works, and works of applied or fine arts, 
and rights of manufacturers of phonograms and videograms.  
290. In his view, the Civil Code and the Law "O n Copyright and Related Rights" were fully 
compliant with Articles 1 to 21 of the Berne C onvention.  The rights of performers and phonograms 
and videogram producers subsisted for 50 years from th e date of first disclosure of the performance, 
or fixation.  In the case of broadcasting organiza tions, protection was valid for 50 years following the 
first broadcast.  The Law "On Copyright and Rela ted Rights" and the Law "On Ukraine's Accession to 
the Bern Convention on Protection of Literary an d Artistic Works" had been amended to provide 
retroactive protection for performers and producers of phonograms in compliance with Article 18 of 
the Berne Convention and Article 14(6) of the TRIPS Agreement. 
291. A Member noted that Ukraine had put a reservation concerning Article 18(3) of the Berne 
Convention and requested Ukraine to withdraw  it upon accession.  The representative of Ukraine 
replied that the Law "On Amendments to the Law of Ukraine 'On Copyright and Related Rights'" of 
11 July 2001 had ensured that Article 18 of the Bern e Convention was fully effective in Ukraine.  The 
World Intellectual Property Organization had been fo rmally notified of Ukraine's withdrawal of the 
reservation with respect to Article 18(3) of the Berne Convention on 10 June 2004.  [The 
representative of Ukraine confirmed that the new revision of the Law "On Copyright and Related 
Rights" satisfied fully the requirements of Article 18 of the Berne Convention and Article 14 of the WT/ACC/SPEC/UKR/5/Rev.2 
Page 102  
 
 TRIPS Agreement.  He further noted that th e Berne Convention applied in Ukraine without 
reservation.  With regard to the WIPO C opyright Treaty (WCT) and WIPO Performances and 
Phonograms Treaty (WPPT), he stated that Ukraine had incorporated their provisions in the new 
revision of the Law "On Copyright and Related Right s", and that Article 9 of the Constitution of 
Ukraine provided that international agreements a nd treaties whose binding nature had been approved 
by the Supreme Rada were incorporated in the national legislation of Ukraine.] 
(b) Trademarks, including service marks 
292. The representative of Ukraine said that trademar ks, including service marks, were protected 
under Ukraine's Civil Code and the Law "On Protec tion of Rights to Marks for Goods and Services" 
No. 3689-XII of 15 December 1993, as amended by th e Law "On Amendments to Certain Legal Acts 
of Ukraine with Respect to Legal Protection to Intellectual Property" No. 850-IV of 22 May 2003.  
Pursuant to Article 6 of the Law, names could not  be registered as trademarks when they were 
identical or similar to (i) marks previously register ed or whose application for registration had already 
been submitted; (ii) marks protected under an intern ational treaty or agreement to which Ukraine was 
a party, including marks recognized as well-known under Article 6 bis of the Paris Convention; 
(iii) protected firm names; (iv) indications of  origin of goods protected under Ukraine's law − such 
indications could only be included as non-protected el ements of a trademark; and (v) duly registered 
certification marks.  The 2003 law amended the Law "On Protection of Rights to Marks for Goods 
and Services" inter alia  to ensure protection against the use of similar and identical marks, to enable a 
third party to challenge and object to an appli cation, as well as to grant protection to well-known 
marks even to the extent that they were not regi stered.  Collective marks were granted similar legal 
protection to that accorded to "individual" mark s.  An association seeking the registration of a 
collective mark should indicate this under the INID c ode (551) on the registration form.  As of early 
2003, more than eight million marks ha d been registered in Ukraine. 
293. Trademarks were protected for an initial peri od of ten years from the date of filing of the 
application.  The term of validity could be rene wed for a further ten years upon request (filed during 
the last year of the present term).  State registration was not a prerequisite for the recognition of trademark licensing agreements; a licensing agreement in writing signed by the parties to it would be 
considered valid.  Well-known marks were protected in accordance with Article 6 bis of the Paris 
Convention pursuant to Article 25 of the Law "O n Protection of Rights to Marks for Goods and 
Services."  Marks were recognized as well-known by th e Appellate Chamber or the court.  Ukrainian 
law did not require the Appellate Chamber to recognize a mark as well-known before legal action 
could be taken to protect it.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 103 
 
 
 294. In response to some Members, who noted that pursuant to Article 6 of the Law "On 
Advertising", all advertising, including trademarks in foreign languages, had to be presented in the 
Ukrainian language, and further inquired about th e practical application of this measure, the 
representative of Ukraine said that the inconsis tencies of the Law "On Advertising" with 
Article 6 quinquies  of the Paris Convention had been removed with the adoption of the Law "On 
Amendments to certain Legislative Acts of Ukra ine regarding Protection of Intellectual Property" 
No. 1407-IV of 3 February 2004.   
(c) Geographical indications, including appellations of origin 
295. The representative of Ukraine said that the Law "On Protection of Rights to Indications of 
Origin of Goods" No. 752-XIV of 16 June 1999 an d the Law "On Protection of Rights to Marks for 
Goods and Services" No. 3689-XII of 15 December 199 3 provided for the protection of geographical 
indications.  Pursuant to Article 1 of the Law "On Protection of Rights to Indications of Origin of 
Goods", geographical indications could be "simple indi cations of the origin of goods", i.e. any verbal 
or graphical indication, which directly or indirec tly pointed to the geographical origin of goods, or 
"qualified indications of the origin of goods", i.e. the name of the place of origin or the geographical 
indication of the origin of goods.  Legal protection was provided to qualified indications of origin on 
the basis of registration (Article 6, paragraph 2).  Registration certificates providing the right to the 
qualified indication of origin were valid for ten years and could be extended an unlimited number of 
times (Article 15).  Registrations c ould only be terminated for the reasons stated in Article 21.1 of the 
Law.  [Article 6 of the law provides that legal pr otection shall be granted to qualified indication of 
origin, subject to their registration remaining in fo rce, for an indefinite period from the registration 
date.  Article 3 of the Law provides that any person, including foreign nationals, shall have the right to 
file a lawsuit in court requesting the invalidation or suspension of registration.  Legal tools are 
available to interested parties for the prevention from the use of geographical indications constituting 
an act of unfair competition under Article 10 bis of the Paris Convention as set by the Civil Code of 
Ukraine and the Law of Ukraine "On Protection from  Unfair Competition".  They provide for civil 
legal, administrative and criminal liability.][Subject to Clause 3 of Article 6 of the Law of Ukraine On Protection of Rights to Marks [Signs] for Goods and Services, no registration as signs may be granted 
to indications that are identical or similar to an extent that they may be confused with qualified 
indications of goods origin (including wines and spirits) protected under the Law of Ukraine On 
Protection of Rights to Indication of Goods Orig in.  Such indications may only be unprotected 
elements of signs owned by persons au thorized to use said indications.] WT/ACC/SPEC/UKR/5/Rev.2 
Page 104  
 
 296. Pursuant to Article 16, item 6 of the Law on Ma rks, the exclusive right of a trademark holder 
to prohibit the use by third persons of the register ed mark without the holder's consent did not extend 
to the use of protected qualified indications of orig in.  Protection of a qualified indication of origin 
could not be denied on the grounds that a mark regi stered in Ukraine consisted in or contained a 
geographical indication (Article 8, item 3 of the Law "On Indication of Goods Origin"), but 
registration of a mark would be rejected if the mark  was identical or similar to a "qualified indication 
of origin", including spirits and liquors, and thereby lik ely to lead to confusion (Article 6, item 3 of 
the Law on Marks).  Qualified indications of orig in could only be non-protected elements of marks 
owned by the persons entitled to use such indications.   
297. A Member noted that Ukraine's legislation di d not afford the rights to trademark owners 
required by Article 16.1 of the TRIPS Agreement, as the representative of Ukraine had noted that, 
"the exclusive right of a trademark holder to prohibit the use by third persons of the registered mark 
without the holder's consent did not extend to the u se of protected qualified indications of origin", and 
further that, "[p]rotection of a qualified indication of origin could not be denied on the grounds that a mark registered in Ukraine consisted in or containe d a geographical indication (Article 8, item 3 of the 
Law "On Indication of Goods Origin"), but registrati on of a mark would be rejected if the mark was 
identical or similar to a "qualified indication of origin", including spirits and liquors, and thereby 
likely to lead to confusion (Article 6, item 3 of the Law on Marks)."  This would deny the trademark 
owner its rights pursuant to Article 16.1 of the TR IPS Agreement, by forcing the earlier trademark to 
co-exist with a later established GI that would be likely to cause confusion with the earlier trademark, 
or worse yet, would call for an earlier trademark to be invalidated or cancelled due to a later-in-time 
GI. 
298. Asked whether an application for a geographical indication from a foreign country should 
include a government document proving the right to the indication in the country of origin, the 
representative of Ukraine said that pursuant to th e Law "On Protection of Rights to Indications of 
Origin of Goods", an indication related to a geogr aphical location in a foreign state would not be 
granted protection unless the indication was protected in the foreign state concerned, and Ukraine had 
concluded a mutual agreement with the foreign st ate concerning the protection of this particular 
geographical indication.   
299. A Member noted that the Law "On Protection of Rights to Indications of Origin of Goods" 
did not afford national or MFN treatment to fore ign GIs.  The requirement of the conclusion of 
separate bilateral agreements concerning each GI fo r which protection was sought cnstituted treatment 
unequal to that afforded to Ukrainian GIs, which benefited from a system of registration set up for  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 105 
 
 
 their protection in Ukraine.  This was clearly in violation of Articles 3 and 4 of TRIPS, as well as 
Article 2 of the Paris Convention. 
300. In response, the representative of Ukraine said that the Law "On the Protection of Rights to 
Trademarks, Geographic Indications and Trade Names"  was in preparation.  The draft Law contained 
a paragraph stating that "[g]eogra phical indication related to a geogra phical location in a foreign state 
shall not be recognized in Ukraine if: the right to this geographical indication is not protected in a 
foreign state concerned and/or Ukraine did not conc lude a relevant agreement with a foreign state 
concerning the mutual protection of rights to this type  of geographical indication".  In his opinion, this 
new text was in full compliance with Articles 3 an d 4 of TRIPS, as well as Article 2 of the Paris 
Convention. 
(d) Industrial designs  
301. The representative of Ukraine said that industr ial designs were protected under Ukraine's 
Civil Code and the Law "On Protection of Rights to Industrial Designs."  Pursuant to Articles 5 and 6 
of the Law, only new industrial designs, which di d not contradict public or der, humanity or moral 
principles, could be registered.  The term of prot ection for an industrial design was ten years from the 
date of filing of the application.  The term of  protection could be extended, upon request, for a 
maximum of five years. 
302. Applications for registration were checked agains t the requirements of Article 11 of the Law.  
In the event of incompatibility with patentability requi rements, protection could be invalidated in full 
or in part in accordance with Article 25 of the La w.  The industrial design "Tires Protector" had been 
invalidated in October 2003 on such grounds. 
(e) Patents 
303. The representative of Ukraine said that inve ntions representing new products or processes, 
involving an inventive step and capable of industria l application were eligible for patent protection 
under Ukraine's Civil Code and the Law "On Protec tion of Rights to Inven tions and Utility Models" 
No. 3687-XII of 15 December 1993, as amended by the Law "On Amendments to Legal Acts of 
Ukraine with Respect to Legal Protection of  Intellectual Property Rights" No. 850-IV of 
22 May 2003.  Patents could not be issued for invent ions contrary to public order, humanity and moral 
principles; plant varieties and animal breeds; biol ogical methods for breeding plants and animals, 
other than microbiological methods; integrated circuits  of layout designs; and artistic design products.  
The term of protection was 20 years from the filing da te.  Decree No. 298 of the Ministry of Science WT/ACC/SPEC/UKR/5/Rev.2 
Page 106  
 
 and Education of 13 May 2002 approv ed the terms, conditions and pr ocedures for the extension of 
patents on pharmaceuticals, means of animal protecti on, etc. for an additional period of protection of 
up to five years.  Ukraine's legislation provided for judicial review of decisions of nullification of a 
patent or loss of rights.  In the event of violation of a holder's rights, the burden of proof rested with 
the defendant.  In response to a specific question,  he confirmed that Article 29 of the Law "On 
Protection of Rights to Inventions  and Utility Models", as amended, provided for the reversal of the 
burden of proof for process patents in accordance w ith the requirements of Article 34 of the TRIPS 
Agreement.   
304. Compulsory licenses could be delivered by the Cabinet of Ministers for public health or 
environmental safety reasons or for other public inte rests with a view to pr edominantly supplying the 
domestic market or by the court following three y ears of non-use or insufficient use of a patent 
without valid reason or refusal of a patent holder to grant a licence, including in the event where an 
invention presenting different objectives or features  from a patented invention could not be used 
without violating the patent holder's rights.  When granting a compulsory licence, the court or Cabinet of Ministers determined the extent of use of the i nvention, the period of effect of the licence, and the 
amount and procedure of payment of royalties to the patent holder so as to ensure adequate 
compensation.  Patent holders retained their right to deliver licenses.  Com pulsory licence holders did 
not have the exclusive right to use an invention, nor  did they have the right to issue sublicenses.  In 
the case of compulsory licenses issued by the Cabi net of Ministers, licenses were granted following 
the filing of a petition to the competent authority, which should specify the motivation for the use of 
the patented invention and include a feasibility stud y describing the conditions of use of the invention 
and the amount of royalties payable to the patent holder.  Petitions were examined by the competent authority and, if admissible, transmitted to the Ca binet of Ministers for decision in accordance with 
Article 30 of the Law "On Protection of Rights to  Inventions and Utility Models".  Licenses were 
nullified when the circumstances under which they had been granted ceased to exist.  Decisions of the 
Cabinet of Ministers could be appealed.  The pr ocedures concerning the filing and examination of 
petitions were described in the Cabinet of Minister s' Resolution No. 8 of 14 January 2004.  Similar 
provisions were contained in the Law "On Protectio n of Rights to Integrated Circuits Design".   
(f) Plant variety protection 
305. The representative of Ukraine said that plant va rieties were protected under the Civil Code 
and the Law "On Protection of Rights to Plants Va rieties" No. 3116-XII of 21 April 1993.  Protection 
was provided for 35 years for arboreal and shrubby cultures and vines, and 30 years for all other plant  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 107 
 
 
 varieties.  On 17 January 2002, the Supreme Rada  had approved the Law "On Amendments to the 
Law of Ukraine on Protection of Rights to Plant Varieties", which revised the wording of the Law.   
306. He added that the draft Law "On Amendments to Certain Laws", which was being discussed 
in the Supreme Rada, provided for Ukraine's ac cession to the 1961 International Convention on 
Protection of New Plants Varieties, as m odified in Geneva on 10 November 1972 and 
23 October 1978.   
(g) Layout designs of integrated circuits 
307. The representative of Ukraine said that protection of layout designs of integrated circuits was 
provided under the Civil Code and the Law "On Prot ection of Rights to Integrated Circuits Design" 
No. 621/97 of 5 November 1997.  The term of protect ion was ten years from the date of application or 
date of first commercial exploitation.  The Law in cluded provisions concerning compulsory licensing. 
(h) Requirements on undisclosed information,  including trade secrets and test data 
308. The representative of Ukraine said that Ukraine' s Criminal, Civil, and Commercial Codes, the 
Law "On Information" No. 2657-XII of 2 October 1992, and the Law "On Protection Against Unfair 
Competition" No. 236/96-VR of 7 June 1996 provide d protection for undisclosed information that 
was secret (not generally known or readily ascertain able), had a commercial value because of its 
secrecy, and had been subject to reasonable steps to keep it secret.   
309. Some Members asked how Ukrainian legislation ensured the protection against disclosure of 
undisclosed test or other data submitted by an applicant to a responsible State agency to obtain 
marketing approval for pharmaceutical  or agricultural chemical products , and how such test and other 
data was protected against unfair commercial use by competitors.  Ukraine was also requested to 
indicate whether a second applicant could rely on or re fer to the original data of the first applicant 
when applying for market authorization for a sim ilar product, and whether Ukraine's legislation set a 
specific term of protection for undisclosed test or other data of the first applicant, and under what 
conditions possible exceptions would apply to such a provision.   
310. The representative of Ukraine replied that Ukrain e's Civil Code protected test data submitted 
to obtain marketing approval for pharmaceutical, ag ricultural, or chemical products utilising a new 
chemical entity in conformity with Article 39.3 of the TRIPS Agreement.  Article 508 of the Code 
provided that the term of validity of intellectual property rights to a commercial secret was limited by 
the period of existence of the entirety of character istics of commercial secrets (as defined in Article 
505 of the Code).  Article 507 of the Civil C ode and the Law "On Protection Against Unfair WT/ACC/SPEC/UKR/5/Rev.2 
Page 108  
 
 Competition" ensured that test and other data w as protected against unfair commercial use.  He 
emphasized that the terms of protection against unfa ir commercial use of test data were not, in his 
view, inconsistent with the provisions of the TRI PS Agreement.  Illegal acquisition of trade secrets, 
the disclosure of trade secrets, and illegal use of trade secrets constituted acts of unfair competition which were punishable by fines imposed by the Antimonopoly Committee as well as giving rise to administrative, civil and criminal liability purs uant to the Code on Administrative Offences 
(Article 164-3) and Articles 231 and 232 of the Criminal Code.   
311. A Member asked the representative of Ukraine to  confirm [that Ukraine will, in compliance 
with Article 39.3 of the TRIPS Agreement, enact specific legislative provisions, prior to accession, 
that require the pharmaceutical registration authoriti es to provide a period of protection against unfair 
commercial use of at least six years for test data submitted from the time the first marketing 
authorization is granted for a specific product utilizin g a new chemical entity in Ukraine.  During this 
six-year period no person or entity other than the person or entity who submitted such data shall be 
entitled, without the explicit consent of the person or entity who submitted the data, to rely on such 
data in support of an application for product appr oval.  During this period any subsequent applicant 
for marketing approval shall not be granted market au thorization unless he submits his own data to the 
same extent as required from the first applicant fo r obtaining the marketing authorization in Ukraine 
for the particular chemical entity.  Furthermore, Ukraine shall guarantee, during this period, the, 
protection of undisclosed information, including commercial secrets, except where necessary to 
protect the public or unless steps were taken to en sure that the data are protected against unfair 
commercial use. The Working Party takes note of these commitments.] 
3. Measures to Control Abuse of Intellectual Property Rights 
[to be completed] 
4. Enforcement (a)  General 
312. The representative of Ukraine said that the most  wide-spread offences of intellectual property 
rights were the manufacturing and distribution of  counterfeit products and copies of audiovisual 
works and phonograms; the duplication and distribu tion of unlicensed computer software; and the 
manufacturing, exportation and importation of discs for laser-readable systems.  Various measures 
had been undertaken over the past few years to re inforce the fight against violation of intellectual 
property rights.  The Law "On C opyright and Related Rights" had been amended in July 2001 to  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 109 
 
 
 include an exhaustive list of acts constituting infring ements of copyright and related rights as well as 
detailed civil remedies, providing the right holders  more effective protection of their rights.  
Moreover, the Cabinet of Ministers had issued 12 R esolutions to reinforce the protection of copyright 
and related rights and fight against piracy (det ailed in document WT/ACC/UKR/118, pages 117-119). 
313. In addition, Ukraine had signed a joint pr ogramme of action "On Combating Illegal 
Production of Optical Carriers of Information" with the United States in May 2000 and a joint 
Agreement "On Cooperation in the Field of Assigning  SID Codes" involving the State Department of 
Intellectual Property, the International Federa tion of Phonogram Industry (IFPI), and Philips 
International B.V.  In 2002, the Cabinet of Mi nisters had approved a Concept for Legitimizing 
Software and Combating Illicit Use of Software an d a new mechanism had been introduced to better 
monitor the transfer of goods across Ukraine's borde rs.  A Law "On Specifics of State Regulation of 
the Activities of Business Entities Associated with Production, Export, and Import of Discs for Laser-
Readable Systems" had also been adopted to addr ess the problem of piracy of copyright, and the 
Supreme Rada was currently considering amendments to this Law.  Under this Law, the production, 
exportation and importation of laser discs was subjec t to special licensing.  The amendments would 
introduce licensing for each consignment of imported or exported discs, as well as licensing for the 
production, export and import of matrices for the ma nufacturing of discs.  Finally, steps had been 
taken to improve the coordination of agencies invol ved in the fight against the illegal production and 
distribution of audio and audiovisual products .  A coordination programme had been adopted 
in May 2003.  Its implementation was supervised by a Coordination Council headed by the Chair of 
the State Department for Intellectual Property.   
314. Controls over intellectual property rights had b een reinforced during 2001-2003.  In 2002, the 
Ministry of Internal Affairs had conducted over 12,000 inspections of commercial entities operating 
in the area of intellectual property; 4,000 violati ons of intellectual property rights were uncovered, 
and the value of seized counterfeited products amou nted to UAH  7 million (US $1.3 million).  Over 
the period 2001-2003, Ukrainian c ourts had processed 465 intellectual property infringement cases.  
In several instances, the cases had resulted in impris onment, fines, the payment of damages, as well as 
the confiscation of equipment.  Notwithstanding the application of any other penalties, confiscation of 
equipment was always imposed as a sanction in  the case of production of pirated products.  
315. A Member noted that effective control of the bo rder with the Russian Federation appeared to 
be a problem, the border checkpoints being easy to ci rcumvent, even for heavy trucks.  This Member 
asked Ukraine to inform the Working Party of any measures taken or planned to address this problem. WT/ACC/SPEC/UKR/5/Rev.2 
Page 110  
 
 316. The representative of Ukraine replied that e ffective border control was complicated as the 
border remained non-demarcated.  The Cabinet of Ministers had approved an anti-smuggling 
programme for 2002-2005, and Ukraine was implem enting a comprehensive program to coordinate 
the actions of its law enforcement agencies and control authorities to combat illicit manufacturing, distribution and sale of audio and video products , compact discs and other Articles covered by 
intellectual property rights.  In addition, the Border  Guard units had been reinforced, nine new border 
checkpoints had been opened in 2003, and an additio nal nine new checkpoints would be established in 
2004.  Impediments were being installed to make it increasingly difficult for motor vehicles to circumvent the border checkpoints.   
(b) Civil judicial procedures and remedies 
317. The representative of Ukraine said that provisions  on civil judicial procedures and remedies 
were included in Ukraine's Civil Procedural Code , the Economic (Commercial) Procedural Code, the 
Criminal Code, the Criminal Procedural Code, the Code on Administrative Offences, and the Law 
"On Protection Against Unfair Competiti on" No. 236/96-VR of 7 June 1996.   
318. Asked how damages were calculated and whethe r pre-established damages were available, 
the representative of Ukraine said that, according to the provisions of procedural laws, each party was 
required to provide evidence of the circumstance s cited in corroboration of his/her claims and 
objections.  Existing legislation did not determine any methodology for calculating damages caused 
by violations of intellectual property rights.  Thus, the person whose rights had been infringed upon 
carried the burden of proving the amount of dama ge actually suffered, i.e. the losses suffered in 
consequence of the violation of his/her rights; ex penses incurred or due for the restoration of the 
infringed rights, and the potential income the person  could have gained but for the infringement of 
his/her rights.   
319. He added that that pursuant to Order No. 19 of  the High Economic Court of 26 July 2001, the 
boards instituted in economic courts were charged with judging cases, in  particular, related to (i) the 
invalidation of legal protection doc uments; (ii) the early termination of validity of legal protection 
documents; (iii) the determination of true owners of legal protec tion documents; (iv) the conclusion 
and execution of licensing agreemen ts; (v) infringements of the property rights of owners of legal 
protection documents; (v) the granting of compulsory licenses; and (vii) the right of prior use.  The 
economic courts also passed judgments on other cases related to the protection of rights provided by 
intellectual property laws.  In cases pertaining to in tellectual property where the applicants' claims 
were upheld in full or in part, the decisions adopt ed by the economic courts could administer the 
payment of moral (non-property) damages and damage s for incurred losses; th e recovery of income  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 111 
 
 
 gained by the offender as a result of the comm itted infringement; compensation instead of damages 
for incurred losses or the recovery of income; impose a fine; prohibit the importation of certain goods 
into Ukraine or the exit of such goods; issue injunctions obliging the culprits to discontinue the 
violation of rights and/or obliging the culprit to disclose information on the committed offence in the 
mass media; and withdraw or seize all goods determ ined to have been manufactured with rights 
infringements. 
320. Specialized court chambers of the High Economic Court and of the economic  courts of appeal 
had been in operation since 1 March 2003.  The sp ecialized chambers were charged with judging 
cases related to economic disputes pertaining to the protection of rights to objects of intellectual 
property.  In addition, appropriate specialization of  judges had been introduced in the local economic 
courts.  He added that current Ukrainian legislati on did not lay down any procedure for the destruction 
of counterfeit goods.  The execution of a court orde r to destroy counterfeit goods was assigned to the 
State Executors' Service.   
(c) Provisional measures 
321. The representative of Ukraine said that the Civil Code (Article 432), the Civil Procedure Code 
(Chapter 4-A), and the Commercia l Code included provisions enabli ng the application of provisional 
measures to prevent an infringement and preserve  relevant evidence.  Applicable provisional 
measures could include inspection of the premises  where infringing activities were believed to be 
taking place, and seizure of assets.   
322. In response to specific questions, he added that  provisional measures could be ordered in civil 
cases.  The Law "On Introducing Amendments to Ce rtain Legislative Acts of Ukraine on Legal 
Protection of Intellectual Property" of 22 May 2003  had introduced appropria te amendments to the 
Code of Civil Proceedings.  According to Article  62¹ of the Code, a person having good reasons to 
suspect that his/her rights were being infringed upon or that a real threat of such infringement existed, 
was granted the right to submit to the court a request  for adequate preventive measures to be taken.  
Such preventive measures might include inspection of  premises where activities related to such rights 
infringement were taking place, and the attachment of property in possession of the person in regard 
to whom the preventive measures were being taken (A rticle 62²).  The applicant's request for such 
preventive measures could be secured by a pledge, the amount of which was determined by the court.  
The court administered the performance of preventi ve measures.  Following the filing of a claim by 
the applicant, the preventive me asures served as means for securing evidence or as means for securing 
the claim (Article 62³).   WT/ACC/SPEC/UKR/5/Rev.2 
Page 112  
 
 323. Provisional measures could be requested prior to  an action being filed for a determination on 
the merits of the claim.  According to Article 62¹ of the Code of Civil Proceedings, a person having 
good reasons to believe that his/her rights had been infringed upon, or that a real threat of such 
infringement existed, was granted the right to s ubmit to the court a request for the performance of 
preventive measures prior to the filin g of a formal claim in court. 
(d) Administrative procedures and remedies 
324. The representative of Ukraine said that administrative procedures and remedies were provided 
for under the Civil Procedural Code, the Economic (C ommercial) Procedural Code and the Criminal 
Procedural Code, the Code on Administrative Offe nces, and the Law "On Protection Against Unfair 
Competition" No. 236/96-VR of 7 June 1996.  Authorities responsible for the administrative 
protection of intellectual property rights included th e State Department for Intellectual Property, the 
Antimonopoly Committee, the Ministry of Internal Affairs, the Secur ity Service, the State Customs 
Service, the State Tax Administration, and th e State Committee for Technical Regulation and 
Consumer Policy.  Ukraine's legislation provided for the possibility to appeal administrative decisions related to intellectual property rights to the Appellate Chamber of the State Department for 
Intellectual Property.   
325. Asked to explain when the administrative procedures and legal remedies provided under the 
Administrative Infringement Code would be applicable , rather than the civil judicial procedures and 
remedies under the newly adopted Civil Code, the representative of Ukraine said that administrative 
procedures envisaged in the Code of Administrativ e Offences for the protection of the rights were 
applied when offences were detected by executive and local self-government body officials and other 
officials.  The rights were protected by conducting the administrative procedure for the imposition of 
administrative penalties provided for in Article 24 of the Code of Administrative Offences. 
(e) Special border measures 
326. The representative of Ukraine said that customs authorities were authorized, at the request of 
a rights holder, to suspend the release of goods su spected of containing a counterfeit trademark or 
infringing on copyright.  Such measures were provi ded for in Ukraine's Customs Code (Articles 255 
to 258 and 345) and the Cabinet of Ministers' Resolution "On the Procedure on Registration and 
Transfer Across Ukraine's Border of Goods Cont aining Intellectual Property Objects" No. 412 of 
28 April 2001.    WT/ACC/SPEC/UKR/5/Rev.2 
 Page 113 
 
 
 327. Responding to specific questions, he indicated that the State Customs Service had seized 
34,411 compact discs for laser-readab le systems and 13,622 units of other audiovisual works in 2003, 
and an additional 28,832 compact discs and 270 audio and video cassettes during the first five months 
of 2004.  Paragraph 25 of the Pr ocedures approved by the Cabinet of Ministers' Resolution No. 412 of 
28 April 2001 gave a customs body the right to su spend, on its own initiative, the customs clearance 
of goods containing intellectual property objects, but onl y if such goods had been entered in a register 
maintained by the State Customs Service.  As of 1 June 2004, the customs bodies had suspended the 
clearance procedures for goods suspected of  being counterfeit in 19 instances.   
328. The register of goods containing intellectual property objects maintained by the State 
Customs Service pursuant to paragraph 6 of the Decree "On the Regulations for the Procedure of 
Registration and Transportation of Goods subject to Intellectual Property Rights across the Customs 
Border of Ukraine" comprised 67 goods (products) rights held by Ukrainian and foreign producers as 
per 1 June 2004.  The right owner or his representa tive applied to the central administration of the 
State Customs Service to have a good containing inte llectual property objects entered in the register.  
The register was maintained in el ectronic form using specially developed software for the integrated 
computerized information system of the State Cu stoms Service, and satellite communications allowed 
the customs bodies to retrieve information on goods  entered in the register as from the date of 
registration.  Access to the tool was limited and reserved for specially authorized officials of the 
customs bodies.  The fees for registration of goods  containing intellectual property objects with the 
State Customs Service were stipulated in the R esolution of the Cabinet of Ministers No. 413 of 
28 April 2001.  The fee for one-year registration amounted to US$400 for the first good containing an intellectual property object, and US$200 for each additional good containing the same intellectual 
property object.  Six-month registration amounted to US$200 for the first good containing an intellectual property object, and US$100 for each additional good containing the same intellectual 
property object.  The registration could be extended fo r six months or one year at a cost of US$100.  
The fees were payable in hryvnia at the rate of ex change established by the National Bank on the date 
of payment.   
329. Concerning the amount charged for filing an app lication to suspend the release of goods, he 
said that the State Customs Service required a lett er of guarantee (guarantee obligation) without 
indication of the amount of guarantee.  A deposition of cash pledge or guarantee was not required.  
The guarantee served to compensate for the costs of  storing goods whose customs clearance had been 
suspended.  The storage fees for goods at customs warehouses had been fixed in the Resolution of the 
Cabinet of Ministers No. 65 of 27 January 1997.   WT/ACC/SPEC/UKR/5/Rev.2 
Page 114  
 
 330. All suspensions of customs clearance procedur es had so far been undertaken by the customs 
bodies on the basis of Paragraph 25 of the Procedures, i.e. in respect of goods suspected of being 
counterfeit.  Information regarding the quantiti es and categories of goods subject to suspended 
customs clearance was classified.  He stressed that the custom s bodies did not seize the goods but 
simply suspended the customs clearance procedures.  According to Ukrainian law, only courts could 
decree the seizure of goods, in which case the matter would be handed over to the State Enforcement 
(Execution) Service subordinated to the Ministry of  Justice.  The customs bodies had not received any 
court decisions on the seizure of counterfeit goods as of 1 July 2003.  The customs bodies did not adopt decisions on the merit of cases, all such decisions were taken solely by the courts. 
(f) Criminal procedures 
331. The representative of Ukraine sai d that the Criminal Code provided for criminal liability for 
infringement of copyright, trademarks, qualified indi cations of origin, industrial designs, patents, 
plant variety, and layout designs of integrated circuits (Articles 176, 177 and 229); unlawful use or disclosure of information constituting a commercia l secret (Articles 231 and 232); violation of 
provisions governing the production, exportation an d importation of discs for laser reading systems 
and the exportation/importation of materials for their production (Article 203-1); and unlawful 
production, counterfeiting or distribution of contro l stamps for copies of audiovisual works and 
phonograms, computer programs and databases (Ar ticle 216).  Criminal infringement cases were 
punishable with fines, correctional works or imprisonm ent.  In the event of violation of intellectual 
property legislation concerning laser discs, pe nalties included fines varying from US$10,000 to 
US$15,000 and imprisonment for up to five years pursuant to the Law "On Specifics of State Regulation of the Activities of Business Entities As sociated with Production, Export and Import of 
Discs for Laser Reading Systems".  Fines were doubled for second offences.   
332. Article 176 of the Criminal Code, as amended, made illegal use of an intellectual property  
right object, the appropriation of authorship or  any other intentional violation punishable by 
imprisonment, correctional labour or a fine, prov ided the actions caused "significant material 
damage". The amendment defined significant material  damage as a value equal to or higher than two 
hundred minimum untaxed personal incomes (curre ntly UAH 17x200=UAH 3,400).  In criminal cases 
of this nature, courts would normally order the destruction of counterfeit goods, as well as the 
implements and raw materials used in the manufacture of such goods.  He also noted that the Law "On Introducing Amendments to Certain Legisl ative Acts of Ukraine on Legal Protection of 
Intellectual Property" had introduced  amendments to the Criminal Code which increased the sanctions 
applicable to offenders.  Thus, violations of copy right and related rights inflicting large-scale material  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 115 
 
 
 damage were currently punishable by a fine  (200 to 1,000 tax-free minimum untaxed personal 
incomes, i.e approximately US$640 to US$3,000), corrective labor, or imprisonment of up to two 
years as well as the confiscation of all counterfe it goods and implements and raw materials used in 
manufacture of such goods.  Penalties were incre ased for repeat offenses, offences committed by a 
group of persons, or offences causing particularly significant damage, i.e. a fine amounting to 2,000 
tax-free minimum personal incomes (approximately  US$6,400), and five-year imprisonment (or 
corrective labor).  Appropriate penalties were also  being envisaged for infringements of rights to 
objects of industrial property (inventions, utility models, industrial pattern s, integral circuit 
topographies, trademarks, indications of the origin of goods).   
333. He added that during the first quarter of 2003, un its of the Ministry of Internal Affairs had 
conducted more than seven thousand inspections of economic entities active in the area of intellectual 
property uncovering 180 offences related to inte llectual property right violations of which 147 
violations of copyright; instigated administrativ e proceedings against 1,500 persons, including 948 
charged with illicit distribution of copies of audi ovisual works and phonograms; and shut down 35 
"underground" production facilities involved in the manufacturing of various counterfeit products.  
Some 283,000 units of counterfeit audiovisual produ cts (valued at UAH3.3 million) and adulterated 
products using trademarks illegally  (estimated value UAH1.3 million)  had been seized from offenders 
during the first quarter of 2003.  
334. [The representative of Ukraine stated that Ukraine would apply the provisions of the 
Agreement on Trade-Related Aspects of Intellectual Property Rights no later than the date of its 
accession to the WTO, without recourse to any transi tional periods.  The Working Party took note of 
this commitment.] 
- Policies affecting trade in services 
335. The representative of Ukraine submitted information on services in documents 
WT/ACC/UKR/13, WT/ACC/UKR/19, WT/ACC/UKR/24, WT/ACC/UKR/36 and 
WT/ACC/UKR/37 and Rev.1.  Information on ser vices legislation was provided in documents 
WT/ACC/UKR/81 and Rev.1, WT/ACC/UKR/87 and Rev.1, WT/ACC/UKR/93 and Rev.1 - 4, and 
WT/ACC/UKR/111 and Add.1, Rev.1.  He added that a number of draft laws amending legislation on 
insurance, banking activities, auditing, legal ser vices, television and radio broadcasting, and 
information agencies had been or would soon be s ubmitted to the Supreme Rada for examination.  A 
list of services-related activities subject to ac tivity licensing is presented in Table 6(c).   WT/ACC/SPEC/UKR/5/Rev.2 
Page 116  
 
 336. The banking sector was regulated by the Law "On Banks and Banking" No. 2121-III of 
7 December 2000, as amended (the most recent am endment had been made on 11 November 2003).  
The Law set identical levels of authorized funds fo r domestic and foreign e quity banks.  Amendments 
to the Law, which would allow foreign banks to set up branches in Ukraine, had been drafted and 
submitted to the Supreme Rada (draft Law No. 3561).  The Supreme Rada had rejected this proposal 
in March 2004, but a new draft Law had been pr epared and would be re-submitted to the Supreme 
Rada.   
337. The insurance sector was regulated by the Law "On Insurance" No. 85/96 of 7 March 1996, as 
amended by the Law No. 980-IV(980-15) of 19 June 2003 and the Law No. 1414-IV(1414-15) of 
3 February 2004.  The registration and licensing of insurance activity was regulated by Article 38 of 
the Law "On Insurance" and was effected by Derz hfinposlug in accordance with the provisions of 
Article 34 of the Law "On Financial Services and St ate Regulation of Financial Services Markets" 
(2664-14) and the requirements of paragraph 8 of  Clause 4 of the Bylaw "On State Commission for 
Regulation of Financial Services Markets of Uk raine" approved by Presidential Decree No. 292 
(292/2003) of 4 April 2003.  The procedure and the rules for mandatory insurance would be 
established by the Cabinet of Ministers.   
338. As regards professional services, Ukraine's legisl ation did not include any restrictions, except 
for the provision of legal and auditing services, which were subject to nationality requirements.  
However, draft Laws "On Auditing" and "On Bar" , which would remove the nationality requirement, 
had been submitted to the Supreme Rada.  R esponding to a Member who enquired about the 
nationality restriction in legal services in the event of criminal cases and whether qualification 
requirements for criminal lawyers were different from the requirements for other lawyers, the representative of Ukraine said that amendments to Article 44 of the Criminal Procedure Code of 
Ukraine had been adopted on 21 June 2001 (L aw No. 2533-III) to eliminate the obligation for 
criminally prosecuted persons to be re presented only by a Ukrainian attorney. 
339. Access to Ukraine's transportation services had been broadened and there were no limitations 
on foreign equity participation.  As for telecommunication services, the Law "On Specifics of Privatization of Open Joint Stock Company UKRTETCOM" No. 1869-III of 13 July 2000 had 
abolished the 49 per cent limitation on foreign ow nership in the telecommunications sector.  No 
further changes in the limitations on foreign equity participation were foreseen in this sector.  The 
Law "On Telecommunications" No. 1280-IV of 18 November 2003 provide d the general legal 
framework for telecommunications, defined the power s of the State in managing and regulating the 
activity, as well as the rights, obligations, and lia bility principles for physical persons and legal  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 117 
 
 
 entities taking part in the activities or making use of telecommunication services; established the 
licensing procedure for telecommunications, and define d the activities subject to such licensing.  One 
of the key provisions of the Law was the allocati on of regulation and manage ment functions, and the 
establishment of the National Commission for Matters of Communication Regulation (NCCR).   
340. Television and radio broadcasting was regulated by the Law No. 3759-XII of 
21 December 1993.  The Supreme Rada was curre ntly considering new draft laws on introducing 
amendments to Article 13 of the Law "On Tele vision and Radio Broadcasting" Nos. 3505 and 3651 
regarding an increase in the share of foreign cap ital in the charter funds of television and radio 
broadcasting companies from 30 to 35 per cent; and No. 1157 regarding an increase in the share of 
foreign capital in the charter funds of television a nd radio broadcasting companies to 49 per cent.   
341. Legislative changes had been introduced with re gard to information agencies.  The Law "On 
Introducing Amendments to the Law of Ukrain e "On Information Agencies"" No. 1379-IV of 
11 December 2003 had increased the permitted shar e of foreign capital in the charter funds of 
information agencies from 30 to 35 per cent.  No furt her changes in the limitations on foreign equity 
participation were foreseen in this sector. 
342. Some Members requested information on the in dependence of the regulatory authorities from 
services suppliers.  The representative of Ukraine said that bank regulation and supervision was 
entrusted to the National Bank.  The Bank was re sponsible before the President and the Supreme 
Rada.  It was not accountable to other banks' li abilities and was therefore independent from banking 
services suppliers.  A National Committee fo r Communication Regulation (NCCR) had been 
established pursuant to the Law "On Telecommunica tions" No. 1280-IV of 18 November 2003 and 
would become the regulating authority in the ar ea of telecommunications.  The competence of the 
NCCR included matters related to licensing and re gistration of telecommunication services suppliers, 
tariff regulation and organizationa l and legal support to general acces s telecommunication services.  
The NCCR's powers would be exercised by the State Committee for Communications and 
Informatization until 1 January 2005.  The Stat e Committee was accountable to the Cabinet of 
Ministers and independent from telecommunications services suppliers.  
343. As for transportation, the regulatory authority was the Ministry of Transport as provided for 
in Decree No. 304/2002 of 27 March 2002.  The Mi nistry acted as a coordinating body within the 
system of central executive authorities administering and implementing State policies in the area of transportation and use of air space, and provided na vigational and hydrographical  backup to seafaring.  
The Ministry issued activity licences where provide d for by law.  The regulatory activities of the WT/ACC/SPEC/UKR/5/Rev.2 
Page 118  
 
 Ministry were financed exclusively from the State budget and did not depend on sponsorship or 
donations.  The Ministry was therefore independent from the services suppliers.   
344. A Member requested Ukraine to guarantee the tr ansparency of its licensing requirements and 
procedures, qualification requirements and procedures, as well as other authorization requirements, in 
particular with respect to obtaining, extending, renewing, denying and terminating licences and other 
approvals required to provide services in Ukraine's ma rket and the appeals of such actions.  Ukraine's 
licensing procedures and conditions should not in th emselves act as a barrier to market access and 
should not be more trade restrictive than necessary.  Ukraine should publish (i) a list of authorities 
responsible for authorizing, approving or regula ting the service sectors in which Ukraine was making 
specific commitments and (ii) Ukraine's licensing procedures and conditions.  Ukraine should ensure 
that these procedures and conditions were pre-establishe d, publicly available, and based on objective 
criteria; identified the activities, terms and conditio ns; included all critical information for the valid 
completion of applications; included the relevant timeframe and critical deadlines (at least indicative 
ones); and identified the competent authority. 
345. In reply, the representative of Ukraine said that  the Law "On Licensing of Certain Types of 
Economic Activity" No. 1775-III of 1 June 2000, whic h applied to all economic entities, determined 
the types of economic activity subject to li censing and the licensing procedure, established 
governmental supervision, and stipulated the lia bility of economic entities and licensing bodies in 
case of violation of Ukraine's licensing legislation.  His Government's policy in the area of licensing 
was based on the principle of securing equal rights a nd the lawful interests of all economic entities; 
the protection of rights, lawful interests, lives and h ealth of individuals, protection of the environment, 
and ensuring the State's security; the establishmen t of a uniform procedure for the licensing of 
economic activity in Ukraine; and the establishmen t of a single list of types of economic activity 
subject to licensing.  Article 3.2 of the Law stated  that licensing could not be used to limit economic 
competition.  The licence was a uniform document, wh ich allowed the conduct of a certain type of 
economic activity which, in accordance with legislati on, was subject to a limitation.  Ukraine's policy 
with respect to licensing was carried out by the Cabi net of Ministers, specifically authorized licensing 
bodies, by the Cabinet of Ministers through specified bodies of the executive branch of government, 
and by local councils' executive bodies specifically authorized to licence certain types of economic 
activity.  As required by Law, the list of institu tions responsible for the issuing of licenses was 
published in the Government's press.   
346. The Law guaranteed the transparency of licensing requirements and procedures, qualification 
requirements and procedures, and other procedures, in particular, with regard to the receipt, renewal,  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 119 
 
 
 re-receipt, refusal and suspension of licenses and ot her authorizations needed to render services in 
Ukraine's market, and the procedures for challengi ng these actions.  Ukraine's licensing procedures 
and conditions were not in themselves barriers to ma rket access or more restri ctive than necessary to 
achieve their objectives.  He stressed that the li censing procedures and conditions were established in 
advance, available to the public and based on object ive criteria; determined the activity, time periods 
and conditions; included all essential information requi red to complete the applications; stipulated 
appropriate time frames and deadlines (at least indica tive ones); and determined the competent bodies.   
347. Responding to specific requests of a Member, th e representative of Ukraine confirmed that 
for the services included in the Ukraine's Sche dule of Specific Commitments Ukraine would 
guarantee the fulfilment of licensing procedures and conditions specified by appropriate legislative 
acts, in particular that (i) Ukraine's licensing pr ocedures and conditions would be published prior to 
becoming effective; (ii) Ukraine would specify reasonable time frames for the review and decision by 
all relevant authorities in Ukraine's licensing proced ures and conditions; (iii) applicants would be able 
to request licensing without individual invitation; (i v) any fees charged, which were not deemed to 
include fees determined through auction or a te ndering process, would be commensurate with the 
administrative cost of processing an application; (v ) the competent authorities of Ukraine would, after 
the receipt of an application, inform the applican t whether the application was considered complete 
under Ukraine's domestic laws and regulations a nd in the case of incomplete applications, would 
identify the additional information required to comple te the application and provide an opportunity to 
rectify deficiencies; (vi) decisions would be taken pr omptly on all applications; (vii) if an application 
was terminated or denied, the applicant would be in formed in writing and without delay of the reasons 
for such action.  The applicant would have the pos sibility to resubmit, at his/her discretion, a new 
application addressing the reasons for termination or denial; and (viii) in case examinations were held 
for the licensing of professionals, such examinations  would be scheduled at reasonable intervals. 
348. The representative of Ukraine confirmed that the measures described in this Report will in no 
way affect Ukraine's obligations deriving from it s specific GATS commitments.  He guaranteed that, 
for the services included in the Schedule of Specifi c Commitments, the appropriate regulatory bodies 
would be separated from, and not subordinated to, any of the services providers governed by them.  
He also guaranteed that foreign suppliers woul d have the right to choose their partners.   
349. [Ukraine's Schedule of Specific Commitments on Se rvices is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this Report (see paragraph [368] below).  This Schedule of 
Specific Commitments on Services contains the legally binding market-access commitments of 
Ukraine in respect of services.] WT/ACC/SPEC/UKR/5/Rev.2 
Page 120  
 
 - Transparency 
- Publication of information on trade 350. Concerning the transparency requirements pr escribed in Article X of the GATT 1994, 
Article III of the GATS and other WTO Agreements, the representative of Ukraine said that Laws, 
other normative acts of the Supreme Rada, as well as acts of the President and the Cabinet of Ministers, had to be published in official gazettes no  later than five days after their adoption, and in 
any case prior to  their entry into force.  These Laws and normative acts – as well as the acts of the 
Constitutional Court, the National Bank, Ministries and other central agenci es – were published in 
Ukrainian in Ofitsiyniy Visnyk Ukrajiny.  Interna tional agreements and treaties, which had entered 
into force, were also published in Ofitsiyniy Vi snyk Ukrajiny.  Other official gazettes included 
Vidomosti Verkhovnoji Rady Ukrajiny and Presydentsk iy Visnyk Ukrajiny.  Effective normative acts 
were also published in Uryadoviy Courier and Holo s Ukrayiny.  Normative acts, published in any of 
the official gazettes, entered into force on the earliest date of publication in either of the gazettes.  
Normative acts of the Supreme Rada and the Preside nt entered into force ten days after publication, 
unless otherwise provided in the acts, but in any case not  prior to the date of publication.  Normative 
acts of the Cabinet of Ministers entered into force as of the date of their publication, unless otherwise 
provided in the acts.  Draft normative acts were  published in Halitski Contracty and Visnyk, a 
periodical of the National Bank, and made  available for discussion on the internet 
(www.zakon.com.ua
).  Ministries were also increasingly placi ng draft legal acts on their official web-
sites to make them available for public discussion.   He confirmed that administrative rulings on 
customs issues were considered normative acts.   
351. He added that a Uniform State Registry for No rmative Acts – an automated system for the 
collection, accumulation and processing of legislative acts (State Registry) – had been established, pursuant to Decree No. 468 of the President "On th e Uniform State Registry for Normative Acts" of 
27 June 1996.  All of the above-m entioned laws, normative acts and international treaties, including 
temporary normative acts, would be included in the St ate Registry.  Resolution No. 376 of the Cabinet 
of Ministers, dated 23 April 2001, approved the Procedures for Maintenance of the State Registry for Normative Acts and their Enforcement. 
352. Pursuant to the Law "On Foreign Economic Ac tivity," any interested person could obtain 
information on foreign trade regulation, except for State or commercial secrets.  Moreover, draft 
regulatory acts were published for comments and proposals, pursuant to the Law "On Principles of State Regulatory Policies in the Ar ea of Business Activities".  Time ly access to all normative acts was 
guaranteed.  Legislative texts could be obtained in Ukrainian (all documen ts) and English (some 120  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 121 
 
 
 documents) free of charge at www.rada.kiev.ua .  They could also be obtained against payment at 
www.welcometo.kiev.ua  (an up-to-date database, which covered a wide range of trade-related topics 
and contained translations of Ukrainian laws and draft laws in English, including summaries), 
www.liga.kiev.ua  and www.nau.kiev.ua .  Normative acts and informa tion relating to intellectual 
property issues in particular, were available from www.sdip.go.ua .  Upon request, copies of legal texts 
could also be delivered against payment by any State authority. 
353. He added that the State Committee on Statis tics was responsible for collecting factual 
information on foreign economic activity.  The data  was published annually and made available to 
any interested person.  The Ministry of Finance w as responsible for the collection of information on 
foreign trade balance and payments, forei gn debt, and gold and currency reserves. 
354. A Member sought a commitment from Ukraine to publish promptly in a single official source 
all regulations and other normative acts or measures pertaining to or a ffecting trade in goods, services, 
or TRIPS, ensuring that no such regulation or ot her normative act or measure became effective or 
enforced prior to such publication; to establish or d esignate an official journa l or website, published or 
updated on a regular basis and readily available to WTO members, individuals and enterprises, 
dedicated to the publication of all regulations and other measures pertaining to or affecting trade in 
goods, services, and TRIPS prior to enactment; to pr ovide a reasonable period, i.e., no less than 30 
days, for comment to the appropriate authorities be fore such measures were implemented, except for 
those regulations and other measures involving na tional emergency or security, or for which the 
publication would impede law enforcement; and to ensu re that the publication of such regulations and 
other measures would include the effective date of these measures and list the products and services 
affected by the particular measure, identifie d by appropriate tariff line and classification. 
355. [The representative of Ukraine confirmed that from the date of accession all laws, regulations, 
decrees, judicial decisions and administrative rulings  of general application re lated to trade would be 
published promptly in a manner that fulfils WTO requ irements.  As such, no law or regulation related 
to international trade would become  effective prior to such publication in the Official Journal.  He 
further stated that all laws which were amende d to comply with the WTO Agreements contained 
provisions which require such publication.  He  further confirmed that upon accession Ukraine would 
post the contents of current and past editions of the Official Journal on the Government website and 
keep them current.  In addition, all regulations a nd other normative acts or measures pertaining to or 
affecting trade in goods, services, or TRIPS would be  published promptly in a single official source, 
and that no such regulation or other normative act or  measure would become effective or be enforced 
prior to such publication.  He further confirmed that by 1 January 200X, Ukraine would establish or WT/ACC/SPEC/UKR/5/Rev.2 
Page 122  
 
 designate an official journal or  website, published or upda ted on a regular basis and readily available 
to WTO members, individuals and enterprises, dedi cated to the publication of all regulations and 
other measures pertaining to or affecting trade in goods, services, and TRIPS prior to enactment, and 
that Ukraine would provide a reasonable period, i.e., no less than 30 days, for comment to the 
appropriate authorities before such measures are im plemented, except for those regulations and other 
measures involving national emergency or security , or for which the publication would impede law 
enforcement.  The publication of such regulations  and other measures would, where appropriate or 
possible, include the effective date  of these measures and list the produc ts and services affected by the 
particular measure, identified by appropriate tariff line and classification.   The Working Party took 
note of these commitments.] 
[The representative of Ukraine stated that, from th e date of accession, Ukraine would implement fully 
Article X of the GATT 1994, and Article III of the GATS and the other transparency requirements of 
the WTO Agreements requiring notification and publi cation.  The Working Party took note of these 
commitments.]   
- Notifications 
356. [The representative of Ukraine said that upon en try into force of the Protocol of Accession, 
Ukraine would submit all the initial notifications re quired by any Agreement constituting part of the 
WTO Agreement.  Any regulations subsequently enact ed by Ukraine which gave effect to the laws 
enacted to implement any Agreement constituting part  of the WTO Agreement would also conform to 
the requirements of that Agreement.  The Work ing Party took note of these commitments.]  
- Trade Agreements 
357. The representative of Ukraine said that Ukrain e had concluded bilateral trade and economic 
agreements establishing most-favoured  nation treatment with Algeria, Argentina, Australia, Austria, 
Belgium, Brazil, Bulgaria, Canada, China, Croa tia, Cuba, the Czech Republic, Denmark, Egypt, 
Estonia, Finland, the Former Yugoslav Republic of Macedonia, France, Germany, Great Britain, 
Guinea, Greece, Hungary, India, Indonesia, Iran, Ire land, Israel, Italy, Japan, the Republic of Korea, 
the Democratic Republic of Korea, the Kyrgyz Re public, Lebanon, Libya, Luxembourg, Montenegro, 
Moldova, Mongolia, the Netherlands, Norway, Pola nd, Portugal, Romania, the Slovak Republic, 
Slovenia, Spain, Sweden, Switzerland, Tunisia, Tu rkey, the United Arab Emirates, the United States, 
and Viet Nam.  Ukraine had also concluded a Partnership and Co-opera tion Agreement with the 
European Union, which provided for the applicatio n of MFN treatment between the parties to the 
Agreement, except for advantages gr anted in the context of the creation of a customs union or a free- WT/ACC/SPEC/UKR/5/Rev.2 
 Page 123 
 
 
 trade area; advantages granted to developing countr ies; and advantages accorded to adjacent countries 
in order to facilitate frontier traffic. 
358. He added that his Government had concluded bilateral free tr ade agreements providing for 
exemption of customs duties, taxes and charges ha ving the equivalent effect on exports/imports, with 
the Republic of Azerbaijan, Armenia, Belarus, Ge orgia, Kazakhstan, the Kyrgyz Republic, Moldova, 
the Russian Federation, Tajikistan, Turkmenistan, the Republic of Uzbekistan, as well as with the 
Former Yugoslav Republic of Macedonia.  The nationa l treatment rule was effective in the provisions 
governing the application of internal taxes a nd fees, as well as in the provisions governing 
warehousing, reshipment, storage, transportation, pa yments and transfer of payments.  Discriminatory 
measures, quantitative restrictions or other equiva lent measures, were not allowed, except on an 
exceptional basis in mutually-agreed cases recognized in the provisions of the GATT 1994.  Rules of 
origin were governed by the Rules adopted on 30 November 2000 by all CIS countries, with the 
exception of Uzbekistan and Turkmenistan.  The bilateral free trade agreements contained no 
provisions with regard to services, investment or government procurement.  He acknowledged that 
some exemptions from the free trade regime applie d to trade relations with Belarus, the Russian 
Federation, Moldova and Kazakhstan.  In his view, the trade preferences granted by Ukraine to CIS 
countries were not in contradiction with WTO rules.   Detailed information on Ukraine's relations with 
CIS countries was provided in documents WT/ACC/UKR/65 and Add.1. 
359. A Member noted that the exemption from do mestic taxation of imports from the Russian 
Federation violated Article I of the GATT 1994 and enquired about Ukraine's plans to address this 
issue prior to accession.  The representative of Ukrain e replied that the exemption had applied only to  
value-added tax and only for crude oil, natural gas condensate, natural gas, non-irradiated fuel 
elements (fuel rods), rods with capacitors, and security and manage ment rods (bumatic absorbers) 
imported from the Russian Federation.  As of 1 January 2005, however, all gas imports would be 
exempt from VAT, while other imported energy products (including raw oil and natural gas 
condensate) would be subject to a 20 per cent VAT ra te.  This new regime would be applied in a non-
discriminatory manner, irrespective of the country of origin, thus eliminating previously-existing 
discriminatory practices in this sector.  
360. Concerning the CIS free trade zone and economic  union, he said that Ukraine had not yet 
acceded to the CIS economic and customs unions, nor to the agreements provi ding for their gradual 
implementation, such as the Agreement on Single Agricultural Market, signed on 6 March 1998 to 
promote the liberalization of agricultural trad e, the coordination of pricing policies and the 
harmonization of SPS systems.  Ukraine had joined  the Economic Union as an associated Member WT/ACC/SPEC/UKR/5/Rev.2 
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 only.  Ukraine's status in the Union would be de termined in a separate ag reement.  The Union, 
established on 24 September 1993 by Azerbaijan, Belarus, Kazakhstan, Moldova, the Russian 
Federation, Tajikistan and Uzbekistan, foresaw th e gradual liberalization of movements of goods, 
services, capital and individuals.  As for the CIS free trade zone, Ukraine was a signatory to the 
15 April 1994 Agreement providing for the creation of  the free trade zone.  Ukraine had applied the 
Agreement temporarily until the adoption of the new Constitution in 1996, which made the entry into 
force of international agreements  conditional upon ratification by the Supreme Rada.  So far, the 
Agreement had been ratified by Azerbaijan, Kaza khstan, the Kyrgyz Republic, Moldova, Uzbekistan, 
and Tajikistan.  The Agreement aimed at creati ng a free trade area, coordinating economic policy, 
promoting inter- and intra-sectoral co-operation and scientific and technical development, and 
harmonizing legislation and regulati ons, in particular with regard to customs duties and procedures, 
and technical regulations to trade.   
361. Ukraine was a party to the Production Co-opera tion Agreement signed by all CIS countries on 
23 December 1993 in Ashkhabad.  The Agreemen t aimed at promoting industrial cooperation 
between enterprises and industries of CIS countries.  It provided for preferences to certain enterprises 
located in CIS countries in the form of exempti on from quantitative restrictions and customs duties 
and taxes on raw materials, spare parts and othe r intermediate products, engineering and repair 
services, technical maintenance, and technological oper ations.  Finished products were not covered by 
the Agreement and therefore subject to VAT and excise taxes if eventually sold in Ukraine.  He added 
that importers of products subject to exempti ons under the Agreement might pay duties by submitting 
credit documents upon importation, pursuant to th e Cabinet of Ministers' Resolution No. 1303 of 
24 November 1997.  According to the State Committee on Statistics, imports and exports falling within the scope of the Agreement amounted to US$ 36.1 million, i.e. 0.44 per cent of Ukraine's trade 
with other CIS countries.  
362. In response to specific questions concerning recen t developments in the formation of a Single 
Economic Space (SES), the representative of Ukraine said that the Agreement on the Formation of the 
Single Economic Space had been signed by the Presi dents of Belarus, Kazakhstan, Ukraine and the 
Russian Federation on 19 September 2003.  The Agreement foresaw the establishment of an 
Organization for Regional Integration.  The Agreem ent aimed at promoting trade, investment, and 
social and economic progress on the basis of genera lly recognized international law principles, 
including WTO rules, and provided for the possib ility of differentiated integration within the 
Organization.  Ukraine had agreed to participate in the Agreement to the extent that it would not 
contradict its course towards European and Euro -Atlantic integration and would facilitate its  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 125 
 
 
 accession to the WTO.  For his Government, the main objective of the SES should be the 
establishment of a free trade zone without any restrictions. 
363. The Supreme Rada had ratified the Agreemen t on the Formation of the Single Economic 
Space on 20 April 2004.  In accordance with the reservati ons made at the time of ratification, Ukraine 
intended to participate in the establishment and func tioning of the SES to the extent this would be in 
compliance with the Constitution of Ukraine.  The Parties to the Agreement held regular High Level 
Group meetings to analyze existing national legislati on and prepare plans, tasks and proposals of legal 
and technical nature, including the preparation of international legislative documents, to ensure the 
establishment of the Single Economic Space.  A Decision to levy value-added tax on the basis of the country of destination principle as of 1 January  2005 had been adopted.  The High Level Group had 
also been mandated to develop documents by th e end of 2004 on a procedure to facilitate the 
movement of natural persons across th e borders of SES member-States.   
364. The priority international legislative documents  necessary for completing the formation of the 
SES had already been drafted and would have to be signed by 1 July 2005.  These legislative 
documents included an Agreement on the Uniform Commodity Nomenclature in Foreign Economic 
Activities of the SES; an Agreement on the Cancella tion of Quantitative Restrictions; an Agreement 
laying down uniform principles for regulating the activity of natural monopolies; Agreements for 
Simplification of Procedures for Customs Clearance and Customs Control at Internal Borders of the 
State Members of the SES; Agreements on Uniform Conditions of Transit through Territories of the 
State Members of the SES; a Treaty on the Establis hment of the Commission for Trade and Tariffs; an 
Agreement entrenching the main (basic) principl es for pursuit of competitive policies in the State 
Members of the SES; an Agreement on Uniform Princi ples for Collection of Indirect Taxes in Mutual 
Trade of the State Members of the SES; an Ag reement on the List of Main Macroeconomic 
Indicators;  an Agreement on the Mechanism of Control over Implementation of Measures aimed to 
Approximate Macroeconomic Indicators of the St ate Members of the SES; and an Agreement on 
Investment Activities and Free Movement of Capital w ithin the Territory of the State Members of the 
SES. 
365. Some Members requested Ukraine to provide clear and detailed information on each of its 
trade arrangements providing for non-MFN trade in g oods, including the coverage of products subject 
to preferential trade and the precise nature of the pr eferential access.  In particular, information was 
sought on preferential trade arrangements, signed since 2002, that had involved the opening of an import or export quota for a particular product.  A Member also enquired about the conditions under WT/ACC/SPEC/UKR/5/Rev.2 
Page 126  
 
 which Ukraine had purchased wheat from the Russ ian Federation and Kazakhs tan in 2003, and in 
particular whether any official or po litical intervention had been involved. 
366. [The representative of Ukraine confirmed th at Ukraine would observe all WTO provisions, 
including those of Article XXIV of the GATT 1994 and Article V of the GATS in the trade agreements, and would ensure that the provisi ons of these WTO Agreements for notification, 
consultation and other requirements concerning free trade areas and customs unions of which Ukraine 
was a Member were met from the date of accessi on.  The Working Party took note of this 
commitment.] 
[The Representative Ukraine confirmed that Ukra ine would observe all WTO provisions including 
Article XXIV of GATT 1994 and Article V of the GA TS in its participation in preferential the trade 
agreements, and would ensure that the provisi ons of these WTO Agreements for notification, 
consultation and other requirements concerning free trade areas and customs unions of which Ukraine 
was a member were met from the date of accession. He confirmed that Ukraine would, upon accession, submit notifications and copies of its Free  Trade Areas and Custom Union Agreements to 
the Committee on Regional Trade Agreements (CRTA). He further confirmed that any legislation or 
regulations required to be altered under its Trade Agreements would remain  consistent with the 
provision of the WTO and would, in any case, be notified to the CRTA during its examination of the 
same.  The Working Party took note of these commitments.] 
- CONCLUSIONS 
367. The Working Party took note of the explanati ons and statements of Ukraine concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the assurances and 
commitments given by Ukraine in relation to cer tain specific matters which are reproduced in 
paragraphs [...] and [...] of this Report.  The Working Party took note that these commitments had 
been incorporated in paragraph 2 of the Prot ocol of Accession of Ukraine to the WTO.   
368. Having carried out the examination of the foreign trade regime of Ukraine and in the light of 
the explanations, commitments and concessions made  by the representative of Ukraine, the Working 
Party reached the conclusion that Ukraine be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Ukraine's Schedule of Con cessions and Commitments on Goods (document 
WT/ACC/UKR/.../Add.1) and its Schedule of Specific Commitments on Services (document WT/ACC/UKR/.../Add.2) that are annexed to the draft Protocol.  It is proposed that these texts be  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 127 
 
 
 adopted by the General Council when it adopts th e Report.  When the Decision is adopted, the 
Protocol of Accession would be open for accepta nce by Ukraine which would become a Member 
thirty days after it accepts the said Protocol.  Th e Working Party agreed, therefore, that it had 
completed its work concerning the negotiations for the accession of Ukraine to the Marrakesh 
Agreement Establishing the WTO.   
_______________ WT/ACC/SPEC/UKR/5/Rev.2 
Page 128  
 
 ANNEX 1 
Laws, Regulations and Other Information Pr ovided to the Working Party by Ukraine
 
Economic Policies 
− Resolution of the Supreme Rada No. 251/95-IIB on the Draft Law of Ukraine "On the 
Foreign Investment Regime" of 12 May 1995; 
− Law of Ukraine on the Foreign Investme nt Regime No. 93/96-SR of 19 March 1996 
− Law of Ukraine No 1540a-XII on Protection of Foreign Investment In Ukraine of 
10 September 1991; 
− Law of Ukraine on Revocation of the Decree of the Cabinet of Ministers of Ukraine "On the 
Payment of Dividends (a Part of Profits) by Agents of Economic  Activity, Established 
through State Enterprises and Organizations" Kiev, No. 480/95-SR of 15 December 1995; 
− The Law of Ukraine "On Licensing of Certai n Types of Economic Activity" No. 1775-III of 
1 June 2000; 
− The Law of Ukraine "On Publishing" No. 318/97-VR of 5 June 1997; 
− Decree of the President of Ukraine on Measures to Provide Currency and Export Control 
No. 504/94 of 7 September 1994; 
− Decree of the President on Measures Regarding the Improvement of Price Policy 
Configuration in Foreign Economic Activ ity No. 124/96 of 10 February 1996; 
− Extract of the Decree of the Cabinet of Mini sters of Ukraine No. 15-93 on the System of 
Currency Regulation and Currency Co ntrol of 19 February 1993; 
− Decree of the President on Improvement of Currency Regulation No. 457/94 of 
22 August 1994; 
− Resolution of the Cabinet of Ministers about th e Procedure of Providing Financial Support of 
Enterprises and the Regulations Governing th e Issue of Providing Budgetary Financial 
Support to the State-Owned and other Enterprises in whose Property the State Share Exceeds 50 per cent No. 645 of 19 September 1994; 
− Decree of the President of Ukraine "On Urgent Measures Aimed to Regulate Activities of 
State-Owned (National) Joint Stock and Holding Companies" No. 1049/2001 of 7 November 2001; 
− Decree of the President No. 412, on Liquidatio n of External Economic Association "Concern 
Ukrzovnishtorg" of 2 December 1994; 
− The Law of Ukraine "On State Registration of Legal Entities and Natural Persons as 
Entrepreneurs"
 No. 755-IV of 15 May 2003; 
− Resolution of the Cabinet of Ministers "On th e Approval of the Procedures for Provision and 
Identification of Amounts of State Support to Coal Mining Enterprises for Partial Coverage of 
Production Costs and Construction and Techni cal Re-equipment of Enterprises producing 
Coal, Lignite (Brown Coal) and Peat" No. 1311 of 21 August 2003; 
− The Law of Ukraine "On Experiments in Residential Construction On the Basis of the 
Holding Company 'Kyivmiskbud'" No. 1674-III of 20 April 2000; 
− Draft Law On Amendment of Some Legislative Ac ts of Ukraine on Regulation of Car Market 
in Ukraine of 13 July 2000; 
− The Draft Law of Ukraine "On State Registration of Right to Real Property" No. 2580 of 
26 December 2002; and 
− Investment Climate in Ukraine in Connection with the Adoption of the Law of Ukraine "On 
the Foreign Investment Regime". 
  WT/ACC/SPEC/UKR/5/Rev.2 
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 Taxation 
− Law of Ukraine on Taxation of Profits of En terprises of 28 December 1994, No 334/94-SR; 
− Law No. 283/97-VR on Amendments and Additions  to the Law On Enterprise Profit Tax of 
22 May 1997; 
− Law No. 77/97-SR on Amending the Law On the Tax System of 18 February 1997; 
− Law No. 168/97-SR on Value Added Tax of 3 April 1997; 
− The Law of Ukraine on Excise Duty and Import Duty Rates for Certain Goods (Products) 
No. 313/96 of 11 July 1996; 
− Decree of the President of Ukraine No. 609/95 on Brands of the excise Duty on Alcoholic 
Drinks and Tobacco Products of 12 July 1995; 
− Resolution of the Supreme Rada on Procedur es for Implementing the Law of Ukraine "On 
Excise Duty on Alcoholic Drinks and Tobacco Products" of 15 September 1995 
No. 330/95-SR; 
− Resolution of the Supreme Rada on Enforcing the Law of Ukraine "On the Excise Tax and 
Import Duty Rates on Tobacco Products" of 06 February 1996 No 31/96-SR; 
− Resolution of the Supreme Rada of Ukraine on Procedures for Implementing the Law of 
Ukraine "On Certain Issues Concerning the Taxa tion of Goods Subject to Excise Duty", Kiev 
No. 433/95-SR of 16 November 1995; 
− Resolution of the Cabinet of Ministers on Approval of the Procedures for Collection of Value 
Added and Excise Tax on Goods Imported to  Ukraine of 27 January 1997 No 66; 
− The Draft Tax Code of Ukraine; 
− Information on the State of Unification of Excise Duties of 1997; and 
− List of Products not Subject to Privileges Provided by Article 1 of the Decree of the President 
of Ukraine of 30 June 1995, No. 499 "O n the Collection of Value-Added-tax". 
 
Customs Regulations 
− The Customs Code of Ukraine No. 92-IV of 11 July 2002; 
− Law No. 3893-XII, On making Amendments to the Decrees of the Cabinet of Ministers on 
Customs Regulation of 28 January 1994; 
− Decree of the Cabinet of Ministers of Ukrain e on Single Customs Tariff of 11 January 1993, 
No. 4-93; 
− Law of Ukraine On the Introduction of Changes a nd Additions to the Decree of the Cabinet of 
Ministers of Ukraine No. 4-93 "On the Uniform Customs Tariff of Ukraine" of 
11 January 1993; 
− Law of Ukraine On Amendment of the Law of Ukraine No. 1212-XIV "On the Introduction 
of the Unified Fee Collected upon Crossing of  Ukrainian State Border", No 2659-III of 
12 July 2001; 
− Law of Ukraine On Amendments to the Law of Ukraine No. 1212-XIV "On the Introduction 
of the Unified Fee Collected at Entry Points  on the Ukrainian State Border", No 387-IV, 
26 December 2002; 
− Resolution of the Cabinet of Ministers of Ukra ine "On Certain Matters Pertaining to Customs 
Clearance of Goods" No. 1985 of 25 December 2002; 
− Resolution of the Cabinet of Ministers of Uk raine "On Approval of the List of Checkpoints 
on the Customs Border of Ukraine through wh ich Narcotics, Psychotropic Substances and 
Precursors are Permitted to be Move d" No. 1950 of 25 December 2002; 
− Resolution of the Cabinet of Ministers of Uk raine "On Approval of the List of Industrial-
Purpose Goods which May not be Exported from the Customs Territory of Ukraine by Ukrainian Nationals, Foreigners or Statel ess Persons" No. 1911 of 13 December 2002; WT/ACC/SPEC/UKR/5/Rev.2 
Page 130  
 
 − Resolution of the Cabinet of Ministers of Ukraine "On Establishment of Deadlines for 
Customs Transit of Goods" No. 1908 of 13 December 2002; 
− Resolution of the Cabinet of Ministers of Uk raine "On Permission for Goods to be Moved 
Across the Customs Border of Ukraine thr ough Airports having no Customs Offices" 
No. 1884 of 12 December 2003; 
− Resolution of the Cabinet of Ministers of Ukraine "On Re-importing the Goods Across the 
Customs Border of Ukraine" No. 1881 of 12 December 2002; 
− Resolution of the Cabinet of Ministers of Ukraine "On Certain Issues of Application of the 
Customs Warehouse Regime" No. 1867 of 12 December 2002; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedures for 
Sampling of Goods, Conduct of Research (Tests , Expert Examination) for Purposes of 
Customs Clearance of Goods, and of Disposal of the Samples" No. 1862 of 12 December 2002; 
− Resolution of the Cabinet of Ministers of Uk raine "On Permission for Goods to be Moved 
Across Ukraine’s Customs Border, under the Temporary Import (Export) Regime" No. 1855 
of 12 December 2002; 
− Resolution of the Cabinet of Ministers of Ukrain e "On Approval of the List of Paid Services 
that May be Rendered by Customs B odies" No. 1952 of 25 December 2002; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approving the Procedure for the 
Certification of Certificates of the Ukrainian Origin of Goods" No. 1861 of 12 December 2002; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for 
Identifying the Country of Origin of a Product which is Moved Across the Customs Border of 
Ukraine" No. 1864 of 12 December 2002; 
− Resolution of the Cabinet of Ministers of  Ukraine "On the Schedule of Production and 
Technological Processes for Determining the Criterion of Sufficient Processing of a Good, and on the Procedure for the Establishment and Application of the Criterion in Determining 
the Country of Origin of a Goods" No. 2030 of 27 December 2002; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approval of the List of Crossing 
Points for Automobile Traffic Across the State Border of Ukraine with Purpose of Bringing 
Across by Citizens of Vehicles and of Chassis and Bodies for Vehicles" No. 1987 of 
25 December 2002; 
− Resolution of the Cabinet of Ministers of Uk raine "On Procedure for Customs Inspection, 
Clearance, and Admission Across the Customs Border  of Ukraine for Goods in Respect to the 
Transfer of Which Restrictions have b een Introduced" No. 1986 of 25 December 2002; 
− Resolution of the Cabinet of Ministers of Uk raine "On Entry into Force of the Certain 
Enactments of the Cabinet of Ministers of Ukraine" No. 92 of 18 January 2003; 
− Resolution of the Cabinet of Ministers of Uk raine "On Charging of Fee for the Customs 
Clearance of Goods and Vehicles Performed out of the Location of Customs Bodies of 
Beyond the Hours of Operation Set for Customs Bodies" No. 93 of 18 January 2003; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for 
Customs Clearance of Military Equipment and Military Vehicles Crossing the Customs Border of Ukraine" No. 63 of 13 January 2003; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approving the Procedure for the 
Extension of the Time Period Granted for the Submission to a Customs Authority and for the 
Prolongation of the Term Granted for the Declaring to a Customs Authority, of Goods and 
Vehicles Transferred Across the Ukrainian Customs Border" No. 377 of 26 March 2003; 
−
 Decree of the President of Ukraine No. 255/96 of 6 April 1996 on The Concept of the 
Transformation of the Customs Tariff of  Ukraine 1996-2005 according GATT/WTO; 
− Resolution of the Cabinet of Ministers on Customs Duty Rates No. 65 of 27 January 1997;  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 131 
 
 
 − Resolution of the Cabinet of Ministers of Ukraine "On Port Fees" No. 1544 of 
12 October 2000;  
− Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for 
Declaring the Customs Value of Goods that M ove Through the Customs Border of Ukraine" 
No. 1375 of 28 August 2003; 
− 1993 Harmonized Tariff Schedule; 
− Unified Custom Tariff of 1997; 
− Unified Custom Tariff currently in force in Uk raine with applied non-tariff measures and with 
customs tariff restructuring offer according to WT/ACC/UKR/22 of 1997; 
− Customs Tariff of March 1998; 
− Replies to the questionnaire on Customs Valuation; 
− Methods of Determining the Customs Value of  Goods. Part XI: Customs Value of Goods. 
Chapter 49: General Provisions; 
− Section XII.  Customs Value of Goods.  Met hods of Determining Cu stoms Value of Goods; 
− Explanatory Notes on the Concept of Reorganizing the Tariff System of Ukraine for 1996-
2005 in Conformity with GATT/WTO Requirements; and 
− The Concept Paper on the Transformation of the Customs Tariff of Ukraine 1996-2005. 
 
Import/Export regulations 
− Law of Ukraine On Foreign Economic Activity No. 959-XII of 16 April 1991; 
− The Law of Ukraine No. 1315-IV "On Amendments to Article 16 of the Law of Ukraine 'On 
Foreign Economic Activitie s'" of 20 November 2003; 
− Decree of the President of Ukraine on Regist ration of Certain Types of Foreign Economic 
Agreements (Contracts) in Ukraine of 7 November 1994 No 659/94; 
− Resolution of the Cabinet of Ministers on the St ate Duty for Issuance of Import Licenses of 
2 August 1996 No 893; 
− Resolution of the Cabinet of Ministers of Ukraine No. 938 "On Further Strengthening of 
Control over Importation, Exportation and Trans it through Ukraine's Territory of excisable 
Alcohol Beverages and Tobacco Products"; 
− Resolution of the Cabinet of Ministers of Uk raine No. 1191 "On Amendment of the Rules of 
Vehicles Importation into Ukraine" dated 8 September 2004; 
− Decree of the President on the Procedure for Application of Restrictions on Import in 
Accordance with Rules and Principles of GATT/WTO of 27 June 1996 No 478/96; 
− The Responses of Ukraine to the Questionnaire Concerning Import Licensing Procedures; 
− List of Goods Subject to Import Licensing 1997; and 
− List of Minimum Levels of the Indicative Prices for Certain Products Exported from Ukraine 
in April 1997. 
 
Trade remedies 
− Law of Ukraine No. 331-XIV On Protection of  the National Industry Against Subsidized 
Imports of 22 December 1998; 
− Law of Ukraine No. 330-XIV on Safeguards of the National Industry Against Dumped 
Imports of 22 December 1998; (Analysis); 
− Draft Law of Ukraine "On Amendments to the Law of Ukraine 'On Application of Safeguards 
with respect to Imports into Ukraine"; 
− Explanatory Notes to the Draft Law of Ukra ine "On Subsidies and Countervailing Measures"; 
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 132  
 
 Standards, certification, technical regulations 
− The Law of Ukraine No. 2406-III "On Conformity Assessment" of 17 May 2001; 
− The Law of Ukraine No. 2407-III "On Accreditation of Conformity Assessment Bodies" of 
17 May 2001; 
− The Law of Ukraine No. 2408-III "On Standardization" of 17 May 2001; 
− Law on Metrology and Metrological activit y No. 113/98-SR of 11 February 1998; 
− Decree of the Cabinet of Ministers on Standard ization and Certification No. 46-93 Amended 
by the Law No. 333/97 of 27 June 1997; 
− Decree of the Cabinet of Ministers on State Supervision Over the Observance of Standards, 
Norms and Rules and Responsibility for their Violation No. 30-93 of 8 April 1993; 
− Resolution of the Cabinet of Ministers on the Approval of the Procedure for Customs 
Clearance of Imported Goods Subject to Manda tory Certification in Ukraine No. 1211 of 
4 November 1997; 
− Agreement on Cooperation Between the State Committee of Ukraine on Standardization, 
Metrology and Certification and U.S. Nationa l Institute of Standards and Technologies of 
28 May 1994; 
− Agreement on Cooperation in the Sphere of St andardization, Metrology and Certification 
between the Cabinet of Ministers of Ukra ine and Government of Turkmenistan of 
7 April 1998; 
− Agreement on Cooperation between the Sphe re of Standardization, Metrology and 
Certification between the Government of Uk raine and the Government of the Russian 
Federation of 12 April 1994; 
− Agreement on Co-operation between the State Committee of Ukraine on Standardization, 
Metrology and Certification and the Fren ch Association on Standardization of 
9 January 1997; 
− Agreement on Co-operation in the field of standardization, certification, quality and 
metrology between the Cabinet of Ministers of  Ukraine and the Government of France of 
24 April 1997; 
− Agreement between the State Committee of Uk raine on Standardization and the National 
Institute of Technology and Quality of the Republic of Korea of 2 June 1997; 
− Rules of Compulsory Certification for Ro ad Vehicles, Their Components and Tools 
(Approved by Order No. 23 of the Ukrainian De rzhsrandard (State Standards Committee) of 
17 January 1997; 
− Rules for Obligatory Certification of Build ing Materials, Products and Constructions 
(Approved by Decision No. 192 of  State Co mmittee of Ukraine for Standardization, 
Metrology and Certification) of 11 April 1997; 
− DSTU 3413-96 Certification System UkrCEPRO Pr ocedure for Certification of Products of 
31 December 1996; 
− Procedure For Recognition of Results of Imported Goods Certification (UkrCEPRO 
Certification System); 
− DSTU 3414-96 Certification System of 31 December 1996; 
− DSTU 3419-96 Certification System UkrCEPR O Certification of Quality Systems of 
31 December 1996; 
− The State Standard of Ukraine of the National System of Standardization on "Rules for the 
Provision of Information to the Trade Partners of Ukraine". 
− Notifications concerning Agreements Reach ed by a Member with Another Country or 
Countries on Issues Related to Technical Regula tions, Standards or Conformity Assessment 
Procedures; and 
− UkrCEPRO Certification System. 
  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 133 
 
 
 SPS measures 
− The Law of Ukraine No. 771/97-VR "On Quality  and Safety of Food Products and Raw Food 
Materials" of 23 December 1997; 
− The Law of Ukraine "On Plant Quarantine" No. 3348-XII of 30 June 1993; 
− Law of Ukraine on Ensuring Sanitary and Epidem ic Safety of the Population No. 4004-XII of 
24 February 1994; 
− The Law of Ukraine No. 3037-III "On Amendm ent of the Law of Ukraine on Ensuring 
Sanitary and Epidemic Safety of th e Population" of 7 February 2002; 
− The Law of Ukraine No. 2775-III "On Amendments  to the Law of Ukraine "On Veterinary 
Medicine" of 15 November 2001; 
− Resolution of the Supreme Rada of Ukraine No. 567/96-SR on Procedure of Enforcement of 
the Law On Introduction of Amendments to  the Law "On Veterinary Medicine" of 
5 December 1996; 
− Resolution of the Supreme Rada of Ukraine No. 569/96-SR on Coming Into Force of the Law 
"On Responsibility of Enterprises, Institutions a nd Organizations for Violation of Veterinary 
Medicine Legislation" of 5 December 1996; 
− Order of the Ministry of Health Protection of Ukraine No. 247 "On Approval of the 
Temporary Procedure for State Sanitary and Hygienic Expertise" of 9 October 2000; 
− Rules of Issue of Veterinary Documents for Freight Subject to Compulsory Veterinary 
Control (with Annexes), approved by order of Ch ief State Inspector of Veterinary Medicine 
of Ukraine of 7 August 1997 No. 27; 
− Veterinary Requirements to Importing Pedigree Cattle, Horses, Poultry, Fish, Fur Animals 
and Bees to Ukraine, approved by order of Chie f State Inspector of Veterinary Medicine of 
Ukraine of 20 October 1999 No. 39; 
− The List of Food Additives Permitted for Use in Ukraine, approved by Resolution of the 
Cabinet of Ministers No. 12 of 4 January 1999; 
− Order of the State Department for Veterinary  Medicine "On Amendments to Veterinary 
Requirements for Imports into Ukraine of Cargo es subject to Control by the Service of State 
Veterinary Medicine" No . 52 of 27 September 2002; 
− Draft Law On Amendment of the Law of Ukraine On Quality and Safety of Food and Food 
Products No. 6292 of 14 December 2000; 
− Special Types of Border Control:  Veterinary, Quarantine and Ecological; and 
− Summary List Of Pests, Plant Diseases and W eeds that are Subject to Plant Quarantine in 
Ukraine. 
 
Agriculture 
− Land Code of Ukraine (New Editi on) No 2768-III, 25 October 2001; 
− The Law of Ukraine "On State Regulation of Production and Trade in Ethyl Alcohol, Cognac 
and Fruit Spirits, Alcoholic Drinks and Tob acco Products" No. 481/95 of 19 December 1995; 
− The Law of Ukraine On Export Duty for Live Cattle and Leather Raw Materials No. 180/96 
of 7 May 1996. Resolution of the Supreme Rada of Ukraine No. 181/96 of 17 May 1996; 
− Law of Ukraine On state Regulation of Sugar Production and Sale No. 758-XIV of 
17 June 1999; 
− The Law of Ukraine "On Stimulation of Agricultural Development for the Period of 2001-
2004" No. 2238-III of 18 January 2001; 
− Law "On State Support of Agriculture in Ukraine" No. 1877-IV of 24 June 2004; 
− Resolution of the Cabinet of Ministers of Ukra ine on Live Cattle Export Regulation No. 71 of 
15 January 1996; WT/ACC/SPEC/UKR/5/Rev.2 
Page 134  
 
 − Resolution of the Cabinet of Ministers on Establishment of SJSC Khlib Ukrainy No. 1000 of 
22 August 1996; 
− Resolution of the Cabinet of Ministers of Ukraine No. 625 "On Measures Regarding Pledge 
Operations with Grain Harvested in 2004" dated 12 May 2004; 
− Order of the Cabinet of Ministers of Ukraine "On Restructuring of SJSC 'Khlib Ukrainy'" 
No. 604-r of 25 October 2002; 
− The Resolution of the Cabinet of Ministers of Ukraine "On Establishment of the State-Owned 
Enterprise 'Agency for Restructuring of Enterp rises in the Agro-Industrial Complex'" No. 690 
of 15 May 2003; 
− Resolution of Cabinet of Ministers of Ukrain e No. 868 on Certain Issues of State Regulation 
of Sugar Production and Sale of 2 June 2000; 
− The Resolution of the Cabinet of Ministers of Ukraine "On Measures Aimed to Stabilize and 
Develop Livestock Husbandry and Poultry Fa rming for 2001-2004" No. 799 of 11 July 2001; 
− The Law of Ukraine " On Amendments to certain  Ukrainian Laws dealing with Pesticides and 
Agricultural Chemicals" No. 1628-IV of 18 March 2004 
− Draft Law On Amendment of the Law of Uk raine On State Regulation of Import of 
Agricultural Produce of 18 April 2000; 
− Data on Export of Live Cattle in 1995 and the First Quarter of 1996; 
− Calculation of Export Duty rates for Live  Cattle and Leather Raw Materials; and 
− Explanatory Note on the Calculation of Expor t Duty Rates and Leather Raw Materials. 
 
Government Procurement 
− The Law of Ukraine On the Supply of Production for State Needs No. 493/95 of 
22 December 1995; 
− Resolution of the Cabinet of Ministers of Uk raine on Procedures for the Formulation and 
Placing of State Orders for the Supply of Production for State Purposes and Review of their Implementation, Kiev No. 266 of 26 February 1996; and 
− Draft Law of Ukraine "On Procurement of Goods , Works and Services for National Needs" of 
1998. 
 
Intellectual Property protection 
− Law No. 3792-XII, on Copyright and Related Rights of 23 December 1993; 
− Law of the Ukraine on Protection of Rights to Trademarks and Service Marks No. 3689-XII 
of 15 December 1993; 
− Final Version of Ukraine's Law on Trademarks and Service Marks; 
− Ukrainian Law No. 3687-XII on Protection of Righ ts for Inventions and Utility Models of 
15 December 1993; 
− Resolution of the Supreme Rada of Ukraine of 23 December 1993 No. 3770- ХІІ on the 
Enactment of the Law of Ukraine on the Protection of Rights for Industrial Designs; 
− Resolution of the Verkhovna Rada of Ukraine, No. 3117-XII of 21 April 1993 on the 
Enactment of the Law of Ukraine On Protecti on of Rights for Sorts of Plants (Summary); 
− Resolution of the Verkhovna Rada of Ukrain e, No. 3771-XII of 23 December 1993 on the 
Enactment of the The Law of Ukraine On Protection of Right s for Products and Services 
(Summary); 
− Resolution of the Verkhovna Rada of Ukrain e, No. 3769-XII of 15 December 1993 on the 
Enactment of the Law of Ukraine On Protection of Rights for Inventions and Useful Models 
(Summary); 
− Law of Ukraine of the Protection of Plant Variety Rights of 21 April 1993 No 3116-XII;  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 135 
 
 
 − The Law of Ukraine No. 1771-III of 1 June 2000 On Amendment of the Law of Ukraine 
No. 3687-XII On Protection of Rights to Inventions and Utility Models; 
− Law of Ukraine On Protection of Rights to Indication of Origin of Goods No. 752-XIV of 
16 June 1999; 
− The Law of Ukraine On Protection of Rights for Industrial Design No. 3688-XII of 
15 December 1993 (Summary); 
− Law of Ukraine On Protection of Rights to Integrated Circuit Designs No. 621/97 of 
5 November 1997; 
− Law of Ukraine On Amendment of Certain Legislative Acts of Ukraine on Increasing the 
Liability for Violations of Intellectual Property Rights No. 2362-III of 5 April 2001; 
− Law of Ukraine On Joining the Agreement of the World Intellectual Property Organization on 
Performance and Phonograms No . 2732-III of 20 September 2001; 
− Law of Ukraine On joining the Agreement of the World Intellectual Property Organization on 
Protection of Interests of Performers, Phono gram Producers and Broadcasting Organizations 
No. 2730-III of 20 September 2001; 
− Law of Ukraine On Joining the Agreement of the World Intellectual Property Organization on 
Copyright No. 2733-III of 20 September 2001; 
− The Law of Ukraine "On Evaluation of Property and Property Rights and Professional 
Evaluation Activity in Ukraine" No. 2658-III of 12 July 2001; 
− The Law of Ukraine "On Amendments to Cert ain Legislative Acts of Ukraine on Legal 
Protection of Intellectual Property" No. 850-IV of 22 May 2003; 
− Decree of the President of Ukraine No. 491/ 98 "On the Regulation of Trade in Certain 
Excisable Goods Connected with Utilization of Audiovisual Works and Services" of 
20 May 1998; 
− Resolution of the Cabinet of Ministers of Ukraine No. 611 on Information that does not 
Constitute Commercial Secr et of 9 August 1993; 
− The Law of Ukraine "On Distribution of Copies of Audiovisual Works, Phonograms, 
Videograms, Computer Software, Da tabases" No. 1587-III of 23 March 2000; 
− The Law of Ukraine "On Amendments of Cert ain Legislative Acts of Ukraine regarding 
Protection of Intellectual Property" No. 1404-IV of 03 February 2004; 
− Draft Law On the Specifics of Governmental Regulation of Business Activity in the Sphere of 
Production, Export and Import of Laser-Readable Discs No. 6251-1 of 22 December 2000; 
− Draft Law On Amendments to the Law of Ukraine "On Copyright and Related Rights" 
No. 1106 of 28 May 1998; 
− Draft Law (version 5 December 2000) On Amendment of the Arbitration Procedural Code of 
Ukraine No. 4233 of 22 December 1999; 
− Table from the State Patent Agency of Ukraine on Compliance of Ukrainian Legislation with 
Requirements of the Agreement on TRIPS in the Field of Intellectual Property Protection; and 
− Table from the State Agency on Copyright and Related Rights on the Compliance of 
Ukrainian Legislation with Requirements of  the Agreement on TRIPS in the Field of 
Copyrights and Related Rights. 
 
Services regulations 
− Maritime Code of 23 May 1995 No. 176/95- ВР; 
− The Law of Ukraine "On Insurance" No. 85/96-VR of 7 March 1996; 
− Law on Ukraine on Banks and Banking Ac tivity, No. 2121-III of 7 December 2000; 
− The Law of Ukraine "On Auditing Activity" No. 3125-XII of 22 April 1993; 
− The Law of Ukraine "On Postal Service" No. 2759-III of 4 October 2001; 
− The Law of Ukraine "On Telecommunicati ons" No. 1280-IV of 18 November 2003; WT/ACC/SPEC/UKR/5/Rev.2 
Page 136  
 
 − Order of the Ministry of Foreign Economic Re lations and Trade of Ukraine on Approval of 
Regulations on the Procedure of Registration of Foreign Agents of Economic Activity 
Representative Offices in Ukraine No. 30.  Register ed in the Ministry of Justice of Ukraine, 
No 34/1059 of 18 January 1996; 
− Resolution of the Cabinet of Ministers of Ukraine "On Approving the Procedure of State 
Accreditation of Health Care Institutions as amended and added unde r Resolution of the 
Cabinet of Ministers of Ukraine No. 678 dated 21 June 2001" No. 765 of 15 July 1997; 
− Licensing Conditions of Conducting Business Activ ity Related to Health Care Practice, 
approved by Order of the State Committee of Ukraine for Regulatory Policy and Entrepreneurship and the Ministry of Health  Protection of Ukraine of 16 February 2001 
No. 38/63. 
− Draft Law On Amendment of the Law of  Ukraine On Insurance No. 2021-D; 
− Draft Law On Amendment of the Law of Uk raine On Television and Radio Broadcasting 
No. 3505; 
− The Draft Law of Ukraine "On Amendment of the Law of Ukraine 'On Auditing'" No. 1282-I 
of 18 September 2002; 
− The Draft Law of Ukraine "On Mortgages" No. 2555-d of 13 February 2002; 
− Current Status of the Banking System of Ukraine; 
− Volume of Services Provided to Ukraine's Population; 
− Volume of Household Services According to Type; and 
− Questionnaire on Basic Telecommunications. 
 
Trade agreements 
− Interim Agreement on Trade and Related Matte rs between the European Community and 
Ukraine; 
− Partnership and Co-operation Agreement between the Eur opean Communities and their 
Member States, and Ukraine, with Protocol on Mutual Assistance between Administrative 
Authorities on Customs Matters, including Exch ange of Letters and Declarations of 
14 June 1994; 
− Two trade agreements with FSU countries a nd three legal texts in Ukrainian language; 
− Agreement on General Conditions and Mechan ism of Support of the Development of 
Industrial Cooperation of Enterprises and Branches of Member States of the Commonwealth of Independent States of 23 December 1993; 
− Protocol A Concerning the Definition of Origin ating Products and Methods of Administrative 
Cooperation to the Agreement between Uk raine and the Republic of Latvia of 
21 November 1995; 
− Agreement between the Government of Ukrain e and the Government of the Republic of 
Armenia on Free Trade of 7 October 1994; 
− Agreement between Ukraine and the Republic of  Azerbaijan on Free Trade of 28 July 1995; 
− Agreement between the Government of Ukrain e and the Government of the Republic of 
Belarus on Free Trade of 17 December 1992; 
− Protocol to the Agreement between the Govern ment of Ukraine and the Government of the 
Republic of Belarus on Free Trade Regarding Exclusions from the Free Trade Regime of 
17 December 1992, of 13 February 1995; 
− Agreement between Ukraine and the Republic of Estonia on Free Trade of 24 May 1995; 
− Protocol A Concerning the Definition of Origin ating Products and Methods of Administrative 
Cooperation to the Agreement between Ukraine a nd the Republic of Estonia of 24 May 1995; 
− Agreement between Ukraine and the Republic of  Georgia on Free Trade of 9 January 1995; 
− Agreement between Ukraine and the Re public of Kazakhstan on Free Trade of 
17 September 1994;  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 137 
 
 
 − Agreement between Ukraine and the Kyrgyz Republic on Free Trade of 26 May 1995; 
− Agreement between Ukraine and the Republic of  Latvia on Free Trade of 21 November 1995; 
− Protocol A Concerning the Definition of Origin ating Products and Methods of Administrative 
Cooperation to the Agreement between Uk raine and the Republic of Latvia of 
21 November 1995; 
− Protocol B Concerning the Agreement on Trad e in Agricultural Products Between Ukraine 
and the Republic of Latvia of 21 November 1995; 
− Memorandum of Understanding Re lating to the Free Trade Agreement Between Ukraine and 
the Republic of Lithuania of 4 August 1993; 
− Agreement between Ukraine and the Republic of  Lithuania on Free Trade of 4 August 1993; 
− Protocol to the Agreement between Ukraine and the Republic of Lithuania on Free Trade 
Regarding Exclusions from the Free Trade Regime of 14 October 1994; 
− Agreement between the Government of Ukrain e and the Government of the Republic of 
Moldova on Free Trade of 29 August 1995; 
− Protocol to the Agreement between the Govern ment of Ukraine and the Government of the 
Republic of Moldova on Rules for Determining the Country of Origin of 29 August 1995; 
− Protocol to the Agreement between the Govern ment of Ukraine and the Government of the 
Republic of Moldova on Re-export of Goods a nd the Procedure for Issuing a Licence for 
Re-export of 29 August 1995; 
− Agreement between the Government of Ukra ine and the Government of the Russian 
Federation on Free Trade of 24 June 1993; 
− Protocol to the Agreement between the Govern ment of Ukraine and the Government of the 
Russian Federation on Free Trade of 24 June 1993; 
− Protocol to the Agreement between the Govern ment of Ukraine and the Government of the 
Russian Federation on Free Trade of 14 November 1997; 
− Agreement between the Government of Ukrain e and the Government of Turkmenistan on 
Free Trade of 5 November 1994; 
− Agreement between the Government of Ukra ine and the Government of the Republic 
Uzbekistan on Free Trade of 29 December 1994; 
− Protocol to the Agreement between the Govern ment of Ukraine and the Government of the 
Republic of Uzbekistan on Free Trade Regardi ng Exclusions from the Free Trade Regime of 
18 April 1997; and 
− Agreement between the Cabinet of Ministers of  Ukraine and the Government of the Russian 
Federation on Production Coope ration of 24 April 1998. 
 
Miscellaneous 
− Import-export data for eleven months of 1994; 
− Foreign Trade Data on Goods and services for 1994 (28 tables); 
− Statistical information (tables) concerning the foreign trade turnover of Ukraine in 1996; 
− Ukraine's WTO Accession Process:  Brief History.  May 1998; and 
− Three Laws and Decrees in Ukrainian Language. 
Legislation provided by Ukraine which is no longer in effect 
− The Law of Ukraine on State Programme for th e Encouragement of Foreign Investment in 
Ukraine 3744-XII of 17 December 1993; 
− Resolution of the Cabinet of Ministers of Ukraine No. 203 on Measures to Execute the Law 
of Ukraine "On the State Programme for Promo tion of Foreign Investments in Ukraine" of 
31 March 1994; WT/ACC/SPEC/UKR/5/Rev.2 
Page 138  
 
 − Decree of the Cabinet of Ministers of Ukra ine No 55-93 on the Procedure of Foreign 
Investment of 20 May 1993; 
− Draft Translation of the Decree of the Cabinet of Ministers of Ukraine on Regime of Foreign 
Investment No. 55-93 of 20 May 1993; 
− Law of Ukraine on Containing Monopolism, Pr eventing Unfair Competition No. 2132-XII of 
18 February 1992; 
− Extract of the Law of Ukraine on the State Budget of Ukraine for 1994 of 2 February 1994; 
− Decree of the President of Ukraine on State Support of Periodicals in 1996, Kiev No. 148/96 
of 24 February 1996; 
− Resolution of the Supreme Rada No. 149/94-SR, on the Improvement of the Privatization 
Mechanism in Ukraine and the Strengthening of Control for its Implementation of 29 July 1994; 
− Decree of the Cabinet of Ministers of Ukraine on Specific Features of Privatization of 
Property in Agroindustrial Complex, No. 51-93 of 17 May 1993; 
− Decree of the President of Ukraine on Accelerati on of Process of Privatization of Property in 
Agroindustrial Sector, Kiev No. 66/95 of 19 January 1995; 
− Resolution of the Supreme Council of Ukraine on Perfection of the Privatization Mechanism 
in Ukraine and Effective Supervision of It s Implementation No. 149/94 of 29 July 1994; 
− Resolution of the Supreme Council of Ukraine on the List of Products the Excise Duty on 
which is Established and on the Rates of  This of 4 February 1994 No. 3951-XII; 
− Resolution of the Cabinet of Ministers of Uk raine on Amending the List of Goods (Products) 
the Excise Duty on which has been Imposed and on  the Rate of this Duty of 5 August 1994 
No. 526; 
− Resolution of the Cabinet of Ministers of Ukra ine on Approval of Conventional Fixed Rates 
of Excise Duty, No. 969 of 1 December 1995; 
− Customs Code of Ukraine of 12 December 1991 No 1970-XII; 
− Draft Customs Code of Ukraine; 
− Law No. 3892-XII, on Making Amendments to Certain Legislative Acts on Customs of 
28 January 1994; 
− Order of the State Customs Committee of Ukra ine on the Procedure for Customs Clearance of 
Goods Imported in Ukraine by Economic Agen ts who are Entitled to Tax Concessions No. 1 
of 3 January 1996; 
− Resolution of the Cabinet of Ministers No. 577, about changes of import duty rates for 
particular kinds of goods of 22 August 1994; 
− Resolution of the Cabinet of Ministers No. 285, on Changes of Import Duty Rates for Goods 
of 3 May 1994; 
− Resolution of the Cabinet of Ministers of Uk raine No. 622 of 10 August 1995 on Introducing 
Changes to Import Duty Rates for Particular Types of Goods and to the Resolution of the 
Cabinet of Ministers of Ukraine No. 285 of 3 May 1994; 
− Resolution of the Cabinet of Ministers On Making Changes to Import Duty Rates for Certain 
Goods not Produced in Ukraine (and amendm ent), No. 192 of 12 February 1996; 
− Resolution of the Cabinet of Ministers on Making Changes to Import Duty Rates for Certain 
Goods and to Certain Decisions of the G overnment of Ukraine, Kiev No. 360 of 
27 March 1996; 
− Resolution of the Cabinet of Ministers on Introduction of Changes to Import Duty Rates for 
Certain Types of Goods of 21 January 1997 No 43 
− Resolution of the Cabinet of Ministers of Ukraine No. 133 on Changes of the Rates of 
Customs Duties of 2 March 1994; 
− Resolution of the Cabinet of Ministers of Ukraine on Procedures for Applying a Numbered 
Transit Band, the Amount of Payment and Pr ocedures for Making Payments for Marking  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 139 
 
 
 Goods, subject to Excise, in Transit through the Territory of Ukraine No. 952 of 
29 November 1995; 
− Resolution of the Cabinet of Ministers on the Procedures for the Mandatory Payments when 
Importing Certain Types of Goods of 23 January 1997 No. 52; 
− Resolution of the Cabinet of Ministers on Modifi cations to the Import Duty Rates for Certain 
Types of Goods of 27 January 1997 No. 64; 
− Resolution of the Cabinet of Ministers on Minimum Customs Value of Imported Tobacco, of 
27 January 1997 No. 63; 
− Resolution of the Cabinet of Ministers on A dopting the Procedure for Determining Customs 
Value of Goods and Other Items Crossing the Customs Border of Ukraine, No. 1598 of 5 October 1998; 
− Order of the Cabinet of Ministers of Ukraine No. 343-P, on the Activities of the Customs-
Tariffs Council of Ukraine of 16 May 1994; 
− Resolution of the Cabinet of Ministers No. 104 6, on Nomenclature of Export and Import 
Commodities Subject to Quota Allocations and Licensing in 1994 of 17 December 1993; 
− Resolution of the Cabinet of Ministers of Ukraine No. 146 on Modifications to the Cabinet of 
Ministers Decree No. 1046 (adopted on 17 December 1993) of 4 March 1994; 
− Resolution of the Cabinet of Ministers No. 249, on Changes to the Resolution No. 1046, 
(dated 17 December 1993) of 27 April 1994; 
− Resolution of the Cabinet of Ministers No. 35, on the List of Goods the Export and Import of 
which are Subject to Quotas and Licensing in 1995 of 18 January 1995; 
− Decree of the Cabinet of Ministers No. 6-93 , on Regulations Governing the Procedure of 
Granting Quotas and Issuing Licences fo r the Export of Commodities in 1993 of 
12 January 1993; 
− Nomenclature of Export Commodities Subject to Quota Allocation and Licensing in 1993 
(Approved by the Decree of the Cabinet of Ministers of Ukraine No. 6-93) of 12 January 1993; 
− Resolution of the Cabinet of Ministers of Ukraine No. 734 on Liberalization of Export 
Operations of 24 October 1994; 
− Resolution of the Cabinet of Ministers of Ukraine No. 222 on Introducing Changes to 
Particular Decisions of the Ukrain ian Government of 31 March 1995; 
− Resolution of the Cabinet of Ministers of Uk raine No. 7 "On the List of Export and Import 
Goods which are under Quotas and Licen sing in 1998" of 5 January 1998; 
− Resolution of the Cabinet of Ministers No. 310 "on the List of Goods, Export and Import 
which is Subject to Quotas and Li censes in 1997" of 4 April 1997; 
− Order of the Ministry of Foreign Economic Re lations and Trade of Ukraine on the Approval 
of the Provision on Export Licensing Procedure in 1996 and Provision on Import Licensing Procedure in 1996, Kiev No. 134-a, Registered with the Ministry of Justice of Ukraine, 
No. 115/1140 of 26 February 1996; 
− The Order of the Ministry of Economy and Eur opean Integration of Ukraine "On Approval of 
the List of Minimal Indicative Price for Some  Products, Exported from Ukraine in May 2003" 
No. 112 of 30 April 2003; 
− Decree of the President of Ukraine on Indica tive Prices for Goods During Export and Import 
Operations by Subjects of Foreign Economic  Activity of Ukraine of 18 November 1994 
No. 691/94; 
−
 Order of the Ministry of Foreign Economic Relations and Trade on Measures of the MFERT 
on the Implementation of the Order of the President of Ukraine No. 1140/95 "On Export 
Regime of Ferrosilicon Manganese, Originati ng form Ukraine, to the Countries of the 
European Community" of 17 January 1996 No 25; 
− Decree No. 84/95, of the President of Ukraine on Regulation of Barter (Commodity 
Exchange) Operations in Foreign Ec onomic Activity of 27 January 1995; WT/ACC/SPEC/UKR/5/Rev.2 
Page 140  
 
 − Decree of the President on Introduction of 19 December 1995 No. 1163/95 on Changes into 
the Order No. 84 of the President of Ukraine da ted 27 January 1995 "On Regulation of Barter 
(Goods Exchange) Operations in the Fi eld of Foreign Economic Activity".  
− Decree of the President of Ukraine No. 660/95 on Additional Measures on the Regulation of 
Barter (Counter Trade) Operations on th e Area of Foreign Economic Activity of 
26 July 1995; 
− Decree of President of Ukraine on Measures in Respect to Prevention Export of Goods which 
Originate from Ukraine at Prices that can be Considered as the Dumping ones and to Settle 
Trade Disputes of 25 August 1994 No. 475/94; 
− Decree of the President of 27 June 1996 No.  478/96 on Procedures for the Application of 
Safeguard Measures Pursuant to the Principl es and Disciplines of the General Agreement on 
Tariffs and Trade GATT/World Trade Organization (WTO); 
− Draft Decree of the President of Ukraine on Procedures for the Application of Safeguard 
Measures Pursuant to the Principles and Discip lines of the General Agreement on Tariffs and 
Trade (GATT)/World Trade Organization (Provisions included); 
− Resolution of the Cabinet of Ministers No. 244 on Measures for Gradual Introduction in 
Ukraine of European Union Directives, Sanita ry, Ecological, Veterinary and Phytosanitary 
Rules, and International and Europ ean Standards of 19 March 1997; 
− Order of the State Committee of Ukraine on Standardization, No. 633 of 18 August 1998; 
− Draft Law On Conformity Assessment No. 6013 of 4 August 2000; 
− Draft Law On Accreditation of Conformity Assessment Bodies No. 6014 of 4 August 2000; 
− Draft Law On Standardization No. 6130 of 5 October 2000; 
− The Procedure for the State Sanitary and Hygien ic Expertise of the Development, Production 
and Use of Products potentially Harmful to Hu man Health approved by the Order of the 
Ministry of Health Protection of Ukraine No. 190 of 20 October 1995; 
− Draft Law On Amendment of the Law of Ukraine On Providing Sanitary and Epidemic 
Safety of the Population; 
− Draft Law On Amendment of Some Legislative Acts of Ukraine on Veterinary Medicine; 
− Law of Ukraine On Imports into Ukraine of Raw Cane Sugar in 2001 No. 2462-III of 
29 May 2001; 
− Decree of President No. 51/95 on Government Contract for Agricultural Products for 1995 of 
16 January 1995; 
− Decree of the President of Ukraine No. 63/ 95 on Reform Measures in Agriculture of 
18 January 1995; 
− Decree of the President of Ukraine on Immediate Measures to Accelerate Land Reform in the 
Sphere of Agricultural Production of 10 November 1994 No  666/94; 
− Resolution of the Cabinet of Ministers of Uk raine on Procedures for Exporting Selected an 
Hybrid seeds of oil seed cultures from Ukraine No. 920 of 21 November 1995; 
− Resolution of the Cabinet of Ministers No. 1375 on Approval of Statute of SJSC Khlib 
Ukrainy" of 12 November 1996; 
− 
Resolution of the Cabinet of Ministers on the Procedure for Using the Funds of the 
Governmental Leasing Fund to Purchase Dome stic Agricultural Machinery No. 25 of 
15 January 1998; 
− The Decree of the President of Ukraine "On M easures Aimed to Stabilize the Situation on the 
Consumer Market and Develop Livestock Husbandry in 2001-2002" No. 100/2001 of 
17 February 2001; 
− Resolution of the Cabinet of Ministers No 932 of 12 November 1993, on the Procedure of 
Formation and Placement of State and Government Order in 1994; 
− Decree of the President of Ukraine on the State Contract and State Order for 1994 No. 489/93 
of 28 October 1993;  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 141 
 
 
 − Resolution No. 140, On securing the Export of Products Governed by State Contracts in 1994 
of 2 March 1994; 
− Decree of the President of Ukraine No. 62/95 on Government Contracts in 1995 of 
19 January 1995; 
− Order of the Ministry of Economy of Ukraine No. 102 on Confirmation of the Regulation of 
the Procedure of Organizing Purchases under the State Contract for the State Needs on the 
Competitive Basis (Provisions Included) of 3 July 1995; 
− Resolution of the Cabinet of Ministers No . 694 Regulations on C onducting International 
Tenders for State Procurement of 28 June 1997; 
− Resolution of the Cabinet of Ministers of Ukraine No. 657 "On Amending and Supplementing 
Several Resolutions of the Cabinet of Minist ers of Ukraine Concerning the Creation of a 
Uniform System of Government Procurement of Goods (Works, Services)" of 7 May 1998; 
− Draft Regulation on Organizing and Holding International Tenders in the Field of 
Government Procurement Concerning the Impor t of Goods/Works, Services in Ukraine; 
− Draft Decree of the President on Organizing and Holding International Tenders in the Field of 
Government Procurement Concerning the Impor t of Goods/Works, Services in Ukraine; 
− Explanatory Notes on the Draft Order of the President on Organizing and Holding 
International Tenders in the Field of Gove rnment Procurement Concerning the Import of 
Goods/Works, Services in Ukraine; 
− Explanatory Note to the Resolution of the Cabinet of Ministers on Organization and 
Conducting of International Auctions (Tenders ) for State Procurement of Goods (Works, 
Services) of Foreign Origin, and the Regula tions on the Procedure of Organization and 
Fulfilment of International Tenders for State Procurements of Goods (Service) of Foreign 
Origin in Ukraine of 28 June 1997; 
− Law No. 3942-XII, on Making Changes to the Civil Code of Ukraine of 4 February 1994; 
− Annex to the Resolution of the Cabinet of Mini sters No. 806 List of Plant Genera and Species 
for the Varieties of Which Patents are Granted of 28 September 1993; 
− Draft Law On Amending Certain Legislative Ac ts of Ukraine on Increasing the Liability for 
Violations of the Rights to Objects of the Right of Intellectual Property No. 5213 of 23 March 2000; 
− Draft law of Ukraine on the Amendment of Certain Legislative Acts of Ukraine on 
Intellectual Property; 
− Law of Ukraine on Communication, No. 160/95-VR of 16 May 1995; 
− Resolution of the Cabinet of Ministers on the Approval of Priority Measures for 1996 
concerning Ukraine's Accession to the General Agreement of Tariffs and Trade (GATT) and 
Joining the World Trade Organization No. 329 of 18 March 1996; and 
− Decree of the President of Ukraine on the Inte rdepartmental Committee for Ukraine's joining 
the General Agreement on Tariffs and Trade a nd Accession to the World Trade Organization, 
Kiev No. 135/96 of 19 February 1996. 
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 142 Table 3:  Goods subject to State regulation of prices and tariffs  
Codes of Goods Description of goods prices (tariffs) 
which are subject to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative Acts/ period of application (if applicable) 
12.12.91 Sugar beets A pproval of minimum 
prices (support prices) The Cabinet of Ministers of 
Ukraine The Law of Ukraine "On State Regulation of Sugar Production and 
Sale," No. 758-XIV, dated 17 J une 1999, and Resolutions of the 
Cabinet of Ministers of Ukraine (hereinafter the "CMU") "On Certain 
Issues of State Regulation of S ugar Production and Sale," No. 868, 
dated 2 June 2000 "Certain Issues of State Regulation of Sugar 
Production and Sale," No. 142, dated 15 February 2002, and "On 
State Regulation of Sugar Production and Sale of," No. 1977, dated 
25 December 2002. 
0402.29 11 Profitability caps and trade mark-
ups for preparations of infant 
nutrition Establishment of 
profitability caps and 
trade mark-ups The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and Sevastopol City State 
Administrations The Resolution of the CMU "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, and normative documents of local authorities 
  Trade mark-ups for medicines and 
produce of medical purposes 
mentioned in the list of domestic 
and imported medicines and 
produce for medical purpose, prices 
of which are subject to state 
regulation Establishment of trade 
mark-ups The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "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, and normative documents of local authorities 
1001, 1002, 1003, 1004, 1005, 1008  Common wheat; rye; barley; oats; 
maize (corn); buckwheat Pledged price
1 The Cabinet of Ministers of 
Ukraine The Resolution of the CMU "On measures on executing pledged 
operations with grain of the 2004 year harvest", No. 625, dated 12 
March 2004. 
17.01.12  Sugar Approval of minimum 
prices  
(support prices) The Cabinet of Ministers of 
Ukraine The Law of Ukraine "On State Regulation of Sugar Production and 
Sale," No. 758-XIV, dated 17 J une 1999, and Resolutions of the 
Cabinet of Ministers of Ukraine (hereinafter the "CMU") "On Certain 
Issues of State Regulation of S ugar Production and Sale," No. 868, 
dated 2 June 2000 "Certain Issues of State Regulation of Sugar 
Production and Sale," No. 142, dated 15 February 2002, and "On 
State Regulation of Sugar Production and Sale of," No. 1977, dated 
25 December 2002. 
                                                      
1 Price guaranteed by the State for the purc hase of grain from agricultural producers for a certain period of time, as set in an  agreement, at pledged prices.  During the 
agreed period, the producers retain the right to withdraw the grai n in order to be able to sell it later at higher market price s.  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 143Codes of Goods Description of goods prices (tariffs) 
which are subject to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative Acts/ period of application (if applicable) 
21.03 90 30 00 Bitter aromatic beverages with 
content of spirits in volume from 
44.2 to 49.2% Approval of minimum 
prices The Cabinet of Ministers of 
Ukraine The Law of Ukraine "On State Regulation of Production and 
Turnover of Ethyl, Cognac and Fru it Spirits, Alcoholic Beverages and 
Tobacco Goods," No. 481/95-VR, dated 19 December 1995, and the 
Resolution of the CMU "On Introduction of Minimum Prices on 
Domestic and Imported Vodka and Distillery Goods," No. 700, dated 
21 June 2001. 
22.08 20 –  2208 90 78 00 Spirits obtained by distilling grape 
wine or grape marc (Armagnac, 
Grappa, Cognac, Brandy, others), 
Whiskies:  (Bourbon whiskey, 
Scotch whisky, Malt whisky, 
Blended whisky, Other), Rum and 
Taffia (Rum with a content of 
volatile substances other than ethyl 
and methyl alcohol equal to or 
exceeding 225 grams per hectolitre 
of pure alcohol (with a 10% 
tolerance), Gin and Geneva, Vodka 
(of an alcoholic strength by volume 
of more or less 45.4% vol), 
Liqueurs and Cordials, Other 
(Arrack, Plum, pear or cherry spirit, 
Spirits, (Calvados, Korn, Tequila, 
Mezcal). Approval of minimum 
prices The Cabinet of Ministers of 
Ukraine The Law of Ukraine "On State Regulation of Production and 
Turnover of Ethyl, Cognac and Fru it Spirits, Alcoholic Beverages and 
Tobacco Goods," No. 481/95-VR, dated 19 December 1995, and the 
Resolution of the CMU "On Introduction of Minimum Prices on 
Domestic and Imported Vodka and Distillery Goods," No. 700, dated 
21 June 2001. 
  
2701-2710 Prices on fuel-energy resources 
(coal, coal briquettes, common 
stove fuel, burning kerosene, fuel 
peat, firewood, peat briquettes and 
compressed gas) supplied to 
population for domestic (home) 
needs Establishment of prices 
and profitability caps or 
declaration The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "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, and normative documents of local authorities 
2711 Wholesale price caps of enterprises 
for natural gas used for needs of 
population and budget 
organizations Establishment of 
wholesale price caps The National Commission for 
Regulation of Electricity The Resolution of the CMU "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, and the Resolution of the NCRE "On the 
Approval of Wholesale Price Caps on the Natural Gas Used for Needs 
of Population, and Tariffs on Se rvices on Transportation and 
Distribution of the Natural Gas to  Consumers of Ukraine," No. 337, 
dated 18 March 1999.  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 144 Codes of Goods Description of goods prices (tariffs) 
which are subject to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative Acts/ period of application (if applicable) 
 Retail prices of natural gas used for 
needs of population Establishment of retail 
prices The National Commission for 
Regulation of Electricity The Resolution of the CMU "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, and the Resolution of the NCRE "On Retail 
Prices on the Natural Gas Used by  Population for Communal-General 
Needs," No. 310, dated 10 March 1999. 
2716 Tariffs on electricity supplied to the 
population for domestic (home) 
needs Establishment of retail 
tariffs The National Commission for 
Regulation of Electricity The Resolution of the CMU "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, and the Resolution of the National Commission 
for Regulation of Electricity (hereinafter the "NCRE") "On Tariffs on 
Electricity Supplied to Populati on and Populated Areas," No. 309, 
dated 10 March 1999. 
31 Fertilisers Wholesale price The Cabinet of Ministers of 
Ukraine The Resolution of the CMU "On Approval of the Order (Procedure) 
for use of the State Budget, that is provided for partial compensation 
of the price of the domestically pr oduced mineral fertilisers No. 13, 
dated 14 January 2004 (is in force from the 16 April 2004 – 1 August 
2004 and the Order of Ministry of Industrial Policy of Ukraine "On 
regulations of the boundary level of the whole sale prices on domestically produced mineral fertilisers for the partial cost 
compensation of which the money is being provided by the State 
Budget, No. 18, dated 20 January 2004 (is in force from the 1 January 
2004 – 1 July 2004) 
4901-4911 Norm of production profitability (in 
the amount of 15%) in case of 
issuance of printed material at the 
expense of the state budget and 
delivery of such material to 
consumers (norm of profitability in 
the amount of 5%) Establishment of 
profitability norms  It is established by the Ministry 
of Education and Science of 
Ukraine, Derzhkomteleradio 
(State Committee for Television 
and Radio of Ukraine) and 
other central authorities of the 
executive power, which place 
state order on issuance of 
printed produce The Resolution of the CMU "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. 
70.10 
ex 
7010.1000 
7010.2000 Deposit prices on glass tare Establishment of the fixed 
and minimum prices or 
deposit price caps The Council of Ministers of the 
Autonomous Republic of 
Crimea, oblast, the Kyiv and 
Sevastopol City State 
Administrations The Resolution of the CMU "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, and normative documents of local authorities.  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 145Codes of Goods Description of goods prices (tariffs) 
which are subject to state regulation Form or nature of price 
regulation Authorities of the executive 
power which effectuate 
regulation Normative Acts/ period of application (if applicable) 
7101-7118 Prices of precious metals in 
Articles and scrap and precious 
stones purchased from population Establishment (approval) 
of prices The Ministry of Finance of 
Ukraine in agreement with the 
Ministry of Economy of 
Ukraine and National Bank of 
Ukraine The Resolution of the CMU "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 (abrogated by Resolution of the Cabinet of 
Ministers No. 974 of 18 July 2004 "On Invalidation of Paragraph 4 of 
the Annex to Resolution No. 1548 of 25 December 1996), the Order 
of the Ministry of Finance of Ukraine "On Approval of Prices on 
Precious Metals Purchased from P opulation in Articles and Scrap," 
No. 999, dated 26 November 2002, and the Order of the Ministry of 
Finance of Ukraine "On Approval of Prices on Precious Metals and 
Precious Stones Purchased from  Population," No. 228, dated 
6 November 1998. 
9021 Prices on prosthetic and orthopedic 
appliances and technical means for 
preventive measures as to 
disablement and rehabilitation Establishment of price The Ministry of Labour of 
Ukraine The Resolution of the CMU "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. 
  Prices on products of hunting, 
including wild fowl supplied for 
export Establishment of pric e Derzhkomlisgosp (State 
Committee for Forestry of 
Ukraine) in agreement with the Ministry of Economy of 
Ukraine for all users of hunting 
grounds The Resolution of the CMU "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. 
  Prices on hunting trophies obtained 
by foreign citizens Establishment of price 
caps Derzhkomlisgosp in agreement 
with the Ministry of Economy 
of Ukraine The Resolution of the CMU "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, and the Order of State Committee for Forestry of 
Ukraine "On the Approval of Price Caps on Hunting Trophies 
Obtained by Foreign Citizens and Tariff Caps on Services Provided to 
such Citizens," No. 26, dated 28 February 2002. 
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 146 Example : 
Minimum retail price (MRP) fo r one 0.5 litre bottle of vodka (40 per cent vol. alcohol): 
   UAH 27.34 x 40 x 0.5 
 MRP =  __________________  = UAH 5.47  
                               100 where: 
− 27.34 – the affirmed minimum retail price in  hryvnia for domestic and impor ted vodka and liqueur-vodka articles, per litre of p ure (100 per cent) alcohol; 
− 40 – alcoholic strength (in per cent); and 
− 0.5 - bottle size ( in litre). 
Note
s:   
− Price regulation regarding ferro-alloys, fire -clays, iron ores, coke provided by the D ecree of the CMU "On Creation of the Inte rgovernmental Commission on State Price Policy in 
Mining and Smelting Complex", No. 204 on 1 September 2004 in accordance  with the Decree of the CMU "On some issues on stimulati ng the development of internal market of 
metals production" No. 179 26 March 2004 thus these items were not included in this tabl e.  These Decrees had expired and were no longer valid. 
− In order to stabilize the situa tion 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 M easures Aimed at Stabilizing th e Market of Main Food Products".   This Resolution empowered the Council of 
Ministers of the Autonomous Republic of Cr imea, Oblsats' State Administrations, Kyiv  and Sevastopol Cities ' State Administratio ns with the authority: 
− To temporarily regulate the prices on "grain, flour, bread, roll s and buns, pasta, groats, sugar,  beef, boiled sausage, milk, c heese, butter, and sunflower oil"; and 
− To regulate boundary trade mark-ups on "grain, flour, bread, roll s and buns, pasta, groats, sugar,  beef, boiled sausage, milk, cheese, butter, and sunflower oil". 
− In order to stabilize the situat ion with meat and meat products' prices the Cabinet of Ministers of Ukraine in addition issued Resolution No. 1359 of 15 October 2004, "On Introducing 
Changes in Annex to Cabinet of Ministers of Ukraine Resolutio n No. 1548 of 25 December 1996".  This Resolution broadened the sc ope of authority provided to the Council of 
Ministers of the Autonomous Republic of Cr imea, Oblsats' State Administrations, Kyiv  and Sevastopol Cities ' State Administratio ns in respect to regulation of prices on beef, pork, 
and poultry meat. 
  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 147Table 4:  Services Subject to State Regulation of Prices or Tariffs  
Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of 
price regulation Authorities of the executive power 
which effectuate regulation Normative Acts 
Tariffs on transportation of cargo 
by railway transport within 
Ukraine and services related 
thereto Establishment of 
tariffs The Ministry of Transport of Ukraine 
in agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of 
Transport of Ukraine "On the Approval of Tariffs on Transportation of Cargo by Railway 
Transport of Ukraine and Coefficients A pplied to such Tariffs," No. 551, dated 
15 November 1999. 
Tariffs for work related to 
processing of foreign commercial 
and transit cargo in sea and river 
ports (berths), and charges and 
fees on services provided to foreign shipping in sea and river 
ports of Ukraine Establishment of 
tariffs The Ministry of Transport of Ukraine 
in agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of 
Transport of Ukraine "On the Approval of Tariffs on Works and Services Provided to Cargo 
Owners in Sea Ports of Ukraine," No. 392, dated 31 October 1995. 
Tariffs on transportation of passengers, luggage and cargo by 
railway transport in international 
and domestic communication 
(excluding suburban services) Establishment of 
tariffs The Ministry of Transport of Ukraine 
in agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, the Order of the Ministry of Transport of 
Ukraine "On the Approval of Tariffs on Tran sportation of Passengers, Luggage and Cargo 
by Railway Transport in International Communication East - West," No. 853, dated 
2 December 2002, and the Order of the Ministry of Transport of Ukraine "On the Approval 
of Tariffs on Transportation of Passengers, L uggage and Cargo by Railway Transport in 
Domestic Communication," No. 103, dated 19 February 2001. 
Tariffs on transportation of 
passengers and luggage by buses 
on inter-city and inter-oblast routes Establishment of 
tariff caps The Ministry of Transport of Ukraine 
in agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of Transport of Ukraine "On the Approval of Ta riffs on Transportation of Passengers and 
Luggage by Buses of Inter-City and Inter-Obl ast Routs," No. 380, dated 22 July 1999. 
Air-navigation fees for air-
navigation services to aircraft in 
the airspace of Ukraine Approval of fee 
rates The Ministry of Transport of Ukraine 
in agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of 
Transport of Ukraine "On the Approval of Fee Rates on Air-Navigation Se rvices of Aircraft 
in the Airspace of Ukraine," No. 145, dated 22 April 1997. 
Airport fees for servicing aircraft 
and passengers in airports of 
Ukraine (landing and take-off of 
an aircraft, servicing of passengers in an airport, stay of an aircraft 
over the designated time and 
ensuring aviation security) Approval of fee 
rates The Ministry of Transport of Ukraine 
in agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 19 96, and 18 orders of the Ministry of 
Transport of Ukraine (as to each airport separately).  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 148 Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of 
price regulation Authorities of the executive power 
which effectuate regulation Normative Acts 
Tariffs for basic services of 
telecommunications provided in 
the territory of Ukraine, and 
services of international 
communication Establishment of 
tariff caps Derzhkomzvyazok (State Committee 
for Communications of Ukraine) in 
agreement with the Ministry of 
Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of State Committee for 
Communications of Ukraine "On the Approval of Tariff Caps on the Basic Services of 
Telecommunication and Tariffs on  Payment of State Pensions and Pecuniary Aid," No. 120, 
dated 7 June 2002. 
Tariffs for universal services of mail communication Establishment of 
tariffs Derzhkomzvyazok in agreement with 
the Ministry of Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of State Committee for 
Communications of Ukraine "On the Approval of  Tariffs on Universal Services of Mail 
Communication," No. 166, dated 18 October 2001. 
Tariffs for acceptance and 
delivery of domestic periodicals 
under the subscription Establishment of 
tariffs Derzhkomzvyazok in agreement with 
the Ministry of Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of State Committee for 
Communications of Ukraine "On the Approval of Tariffs on Subscription and Delivery of 
Periodicals," No. 142, dated 21 September 2001. 
Tariffs for services related to payment and delivery of pensions 
and pecuniary aid to population, 
which are paid from the funds of 
the Pension Fund of Ukraine Establishment of 
tariffs Derzhkomzvyazok in agreement with 
the Ministry of Economy of Ukraine 
and the Pension Fund of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of State Committee for 
Communications of Ukraine "On the Approval of  Tariffs Caps on the Basic Services of 
Telecommunication and Tariffs on  Payment of State Pensions and Pecuniary Aid," No. 120, 
dated 7 June 2002. 
Tariffs for water delivery provided 
by Production Association 
"Ukrpromvodchormet" an 
Enterprise 
"Kryvbaspromvodpostachannya" Agreeing on the 
limit level of tariffs The Ministry of Industrial Policy of 
Ukraine in agreement with the Kyiv 
and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of 
Industrial Policy of Ukraine "On Improvement of Tariff Regulations on Services on Water 
Delivery," No. 225, dated 29 June 1999. 
Payment cap for residence in student hostels Establishment of 
payment cap The Ministry of Education and 
Science of Ukraine, the Ministry of 
Health Protection of Ukraine and 
other ministries and central 
authorities of the executive power 
under competence of which there are 
teaching and educational institutions, 
in agreement with the Ministry of 
Finance of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of 
Education and Science of Ukraine, the Minist ry of Health Protection of Ukraine and the 
Ministry of Finance of Ukraine "On Estab lishment of Payment Cap for Residence in 
[Student] Hostels," No. 453/362/260, dated 21 December 1998. 
Payment caps for residence in hostels of the system of the 
Ministry of Interior of Ukraine Establishment of 
payment cap The Ministry of Interior of Ukraine in 
agreement with the Ministry of 
Finance of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996.  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 149Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of 
price regulation Authorities of the executive power 
which effectuate regulation Normative Acts 
Tariffs for transportation of 
natural gas, oil, oil products, 
ammonia and ethylene substances 
supplied to consumers of Ukraine 
by trunk pipelines Establishment of 
tariffs The National Commission for 
Regulation of Electricity The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996,  and Resolutions of the NCRE "On Tariffs 
on Transportation of Oil by Trunk Pipelines through the Territory of Ukraine," No. 1092, 
dated 26 August 1999, "On the Approval of Tari ffs on Transportation and Supply of the 
Natural Gas," No. 73, dated 29 January 2001, "On Tariff on Transportation of Ammonia of 
the Russian Origin through the Territory of Ukraine by a Trunk Pipeline," No. 1285, dated 
28 December 2000, "On Tariff on Transit and Transportation of Liquid Ammonia by a Trunk Ammonia Pipeline," No. 252, dated 23 January 2001, and "On Tariffs on 
Transportation of Liquid Ammonia by Trunk Pipelines," No. 1067, dated 
27 September 2002. 
Tariffs for storage of natural gas Establishment of 
tariffs The National Commission for 
Regulation of Electricity The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Resolution of the NCRE "On 
Tariffs on Storing, Pumping-in and Extracting of  the Natural Gas by Subsidiary Enterprise 
"Ukrtransgas," No. 447, dated 27 April 2000. 
Tariffs for transportation of 
natural gas by distributive 
networks and supply of natural gas Establishment of 
tariffs The National Commission for 
Regulation of Electricity The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and Resolutions of the NCRE on the approval of tariffs on transportation of the natu ral gas by distributive pipelines for regional 
enterprises. 
Tariffs for services provided to 
foreign citizens who are users of 
hunting grounds Establishment of 
tariff caps Derzhkomlisgosp in agreement with 
the Ministry of Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of State Committee for 
Forestry of Ukraine "On the Approval of Pr ice Caps on Hunting Tr ophies Obtained by 
Foreign Citizens and Tariff Caps on Services  Provided to such Citizens," No. 26, dated 
28 February 2002. 
Prices of licenses for hunting wild 
hoofed hunting animals and bear Establishment of 
prices Derzhkomlisgosp in agreement with 
the Ministry of Economy of Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and the Order of the Ministry of Forestry 
of Ukraine "On the Approval of Price of Hun ting Licenses for Hunting in Hunting Grounds 
of Ukraine for Citizens of Ukraine and Foreign Citizens," No. 85, dated 8 August 1996. 
Amount of payment for services 
provided to drunk persons by 
medical departments of sobriety 
attached to interior authorities Establishment of the 
amount of payment, 
price caps or 
profitability caps The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for services provided by 
the state-owned and communal 
medical and preventive 
institutions of health protection Establishment of 
prices and 
profitability cap or 
declaration The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 150 Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of 
price regulation Authorities of the executive power 
which effectuate regulation Normative Acts 
Tariffs on inventory of real estate, 
legalization of ownership rights to 
real estate objects and registration 
of such rights Establishment of 
tariffs, tariff caps 
and profitability cap 
or declaration The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for ritual services required for burial Approval of tariffs 
and profitability cap 
or declaration The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Prices (Tariffs) 
Regulation," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for transportation of 
passengers and price of tickets in 
city passenger vehicles, i.e. the 
underground, bus, tram and trolley 
bus (which works in an ordinary 
regime of traffic) Approval of tariffs 
and tariff caps or 
profitability cap The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations, executive 
authorities of the L'viv and Kryviy 
Rig City Councils The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for transportation of passengers and luggage by 
passenger electric transport 
(trolley bus) in inter-city and 
suburban communication Establishment of 
tariff caps The Council of Ministers of the 
Autonomous Republic of Crimea The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of the Council 
of Ministers of the Autonomous Republic of Crimea 
Tariffs for transportation of passengers and luggage by railway 
transport in suburban 
communication  Approval of tariff 
caps Departments of railways in agreement 
with the Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996. 
Tariffs for transportation of passengers and luggage by motor 
transport (which works in an 
ordinary regime of traffic) in 
inter-city, within oblast and 
suburban communication Approval of tariff 
caps The Ministry of Transport of Ukraine 
in agreement with the Council of 
Ministers of the Autonomous 
Republic of Crimea, oblast, the Kyiv 
and Sevastopol City State 
Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, the Order of the Ministry of Transport of 
Ukraine "On the Approval of the Standard Fo rms of Tickets for Trip of Passengers and 
Transportation of Luggage by Motor Transpor t and Tariffs Zones of Transportation of 
Passengers by Motor Transport in Suburban Routs," No. 278, dated 31 May 2000, and the 
Order of the Kyiv City Territorial-Production Association of Motor Transport "On the 
Approval of Tariff Caps on Transportation of Pa ssengers and Luggage in Inter-city within 
Oblast Routs," No. 75, dated 11 July 2001. 
Tariffs for transportation of cargo 
by railway spurs, on loading-
unloading works and other 
services provided by enterprises of 
the industrial railway transport Approval of tariffs Ukrpromzaliztrans The Resolution of th e CMU "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, the Order of the Ukrainian Association of 
the State-owned Inter-branch Enterprise s of the Industrial Railway Transport 
"Ukrpromzaliztrans" of the Ministry of Trans port of Ukraine "On the Approval of Tariffs on 
Transportation of Cargo by Railway Spur s, on Loading-Unloading Works and other 
Services Provided by Enterprises of the I ndustrial Railway Transport," No. 194, dated 
5 November 2002.  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 151Description of goods or services 
prices (tariffs) which are subject 
to state regulation Form or nature of 
price regulation Authorities of the executive power 
which effectuate regulation Normative Acts 
Tariffs for services related to 
water supply and drainage systems 
provided by agents of 
entrepreneurial activity regardless 
of ownership types for all 
consumers, and complex of works 
related to supply of water to such 
agents and purification of the said water Establishment of 
tariffs, tariff caps 
and profitability cap 
or declaration The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for production of heat 
energy, as well as services related 
to heat supply provided by agents 
of entrepreneurial activity 
regardless of owne rship types for 
all consumers Establishment of 
tariffs, tariff caps 
and profitability cap 
or declaration The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for services on cleaning, 
removing and destroying of hard 
domestic wastes and liquid 
sewage provided by agents of entrepreneurial activity regardless 
of ownership types for all 
consumers Approval of tariffs 
or profitability cap The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
The limit amounts of payment for 
residence in hostels of individuals, 
foreigners and stateless persons 
who stay in Ukraine on legal 
grounds  Approval of 
amounts of payment 
and payment caps or  
profitability cap The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
Tariffs for services of cable television Establishment of 
tariffs and tariff 
caps or profitability cap The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City State Administrations in agreement 
with the Ministry of Economy of 
Ukraine The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local authorities 
Payment caps for services 
provided by market places 
housing sellers of food and non-
food goods. Establishment of 
payment or payment 
caps The Council of Ministers of the 
Autonomous Republic of Crimea, 
oblast, the Kyiv and Sevastopol City 
State Administrations The Resolution of the CMU "On Establishm ent of Powers of the Executive Power 
Authorities and Executive Authorities of City Councils Regarding Price (Tariff) 
Regulations," No. 1548, dated 25 December 1996, and normative documents of local 
authorities 
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 152  
 
 Table 5:  Calculation of Tariffs for the Supply of Electric Energy
 
1.  Calculations of expected average purchasing price for the electric energy for the month in 
question for which the retail tariff is established are made in four stages, as below. 
1.1  Actual average purchasing price for the electric  energy determined within the month prior to 
the last month in question is calcula ted, subsidy corrections included: 
Цр-2ОРфакт * Ер-2ОРфакт +Цр-2Н* Ер-2Нфакт +∑Др 2 
---------------------------------------------------------------------- Цр-
2С3факт = Ер-2ОРфакт +Ер-2Нфакт  (UAH/Megawatt 
per year 
  
Цр-2Орфакт  is a price paid by the licensee purchasing the electric energy for Wholesale Electric 
Energy Market in the month prior to the last mont h in question (according to the electric energy sales 
act), (UAH/Megawatt per year). 
Цр-2Н is the price for which the licensee has purchased  the electric energy according to an agreement 
directly from the producing company or the tariff for the electric energy supplied by an electric power 
station owned by the licensee in the month prior to the last month in question (UAH/Megawatt per year). 
Др-2 is the total sum of subsidies granted for th e licensee and adopted by the National Committee for 
Regulation of Electric Energy Industry licensee in the month prior to the last month in question, 
UAH. 
Ер-2Орфакт  is the actual amount of the electric ener gy purchased by the licensee for Wholesale 
Electric Energy Market in the month prior to the last month in question (according to the electric energy sales act), (UAH/Megawatt per year). 
Ер-2Нфакт  is the actual amount of the electric energy purchased by the licensee directly from the 
producing company or the electric energy received by an electric power station owned by the licensee 
in the month prior to the last month in question (UAH/Megawatt per year). 
1.2  Expected average purchasing price for the el ectric energy for the month prior to the last 
month in question is calculated, subsidy corrections not included: 
Цр-2ОР* Ер-2ОР+Цр-2Н* Ер-2Н 
---------------------------------------------------------------------- Цр-2С3= 
Ер-2ОР+Ер2Н (UAH/Megawatt 
per year) 
  
Цр-2ОP is an expected wholesale market price in th e month prior to the last month in question 
(confirmed by National Committee for Regulation of  Electric Energy Industry), (UAH/Megawatt per 
year). 
Цр-2Н is the price for which the licensee has purchased  the electric energy according to an agreement 
directly from the producing company or the tariff for the electric energy supplied by an electric power 
station owned by the licensee in the month prior to the last month in question (UAH/Megawatt per year).  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 153 
 
 
 Ер-2ОP is the expected amount of the electric energy purchased by the licensee for Wholesale 
Electric Energy Market in the month prior to the l ast month in question, Megawatt per year (according 
to expected balance of the electric energy adopted by the Ministry of Fuel and Electric Energy and 
technical/business indices calculated as based upon this balance for the month concerned). 
Ер-2Н is the expected amount of the electric energy  purchases by the licensee directly from the 
producing company or the expected amount of the electric energy received by an electric power 
station owned by the licensee in the month prior to the last month in question, UAH/Megawatt per 
year (according to expected balance of the electri c energy adopted by the Ministry of Fuel and 
Electric Energy and technical/bus iness indices calculated as based upon this balance for the month 
concerned). 
1.3   Deviation of the payment amount for the electric energy purchased is determined, i.e. 
Ср-2=(Цр-2С3факт -Цр2С3)*(Ер-2Орфакт +Ер2Нфакт )+Ср-2кор (UAH), 
Цр-2С3факт  is the actual average purchase price for the el ectric power determined in the month prior 
to the last month in question is calculated, subs idy corrections included (calculated by the licensee), 
UAH/Megawatt per year. 
Цр-2С3 is the expected average purchasing price for the electric energy for the month prior to the last 
month in question, corrections for payment amount  deviations not included (calculated by the 
licensee), UAH/Megawatt per year. 
Ер-2ОP факт  is the actual amount of the electric energy purchased by the licensee for Wholesale 
Electric Energy Market in the month prior to the l ast month in question, Megawatt per year (according 
to the electric energy sales agreement). 
Ер-2Нфакт  is the actual amount of the electric energy purchases by the licensee directly from the 
producing company or the electric energy received by the licensee from the electric power station 
owned by him in the month prior to the last month in question, UAH/Megawatt per year (according to 
the electric energy sales agreement). 
Ср-2кор – cost of the corrections made for the sta ndard technology expenses of the electric energy 
determined in compliance with the "Temporary Enactment for Procedures of Submission, Determination and Adoption of Economic Rates Of Standard Technologic Expenses of Electric 
Energy for Licensees Transferring Electric Energy by Local Electric Power Networks" adopted by the 
decree of the National Committee for Regula tion of Electric Energy Industry dated 
30 November 2001, No 1179. 
No DCp-2 кор is calculated for the licensees, for which the tariffs for transfer of the electric energy 
and the retail tariffs are calculated according to the Decree issued by the National Committee for 
Regulation of Electric Energy Industry dated 10.042001 No 348 concerning definition of the expected 
purchasing price for the electric energy for a month in question coming next after that reported. 
1.4  The expected average purchasing price for th e electric energy for a month in question for 
which the retail tariffs are established shall be calculated, i.e. 
Цр-ОР* Ер-ОР+ЦрН * ЕрН +Ср-2 
---------------------------------------------------------------------- ЦрС 3= 
ЕрОР +ЕрН  (UAH/Megawatt 
per year) 
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 154  
 
 ЦрО P is an expected wholesale market price in a month in question (confirmed by the National 
Committee for Regulation of Electric Energy Industry), (UAH/Megawatt per year). 
ЦрН  is the price for which the licensee has purchased  the electric energy according to an agreement 
directly from the producing company or the tariff for the electric energy supplied by an electric power 
station of the licensee in the month in question (UAH/Megawatt per year). 
ЕрОP is the expected amount of the electric ener gy purchases by the licensee at the Wholesale 
Electric Energy Market in the month in question, Megawatt per year (according to expected balance 
of the electric energy adopted by the Ministry of  Fuel and Electric Energy and technical/business 
indices calculated as based upon this balance for the month concerned). 
ЕрН is the expected amount of the electric ener gy purchases by the licensee directly from the 
producing company or the expected amount of the electric energy received by an electric power 
station owned by the licensee in the month in question, UAH/Megawatt per year (according to 
expected balance of the electric energy adopted by the Ministry of Fuel and Electric Energy and 
technical/business indices calculated as based upon this balance for the month concerned). 
DCP-2 are deviations of the amount paid off for the electric energy purchased, UAH (calculated by 
the licensee). 
2.  Calculation of the retail tariff for the elect ric energy consumed is to be made using the 
formulae: 
Црс3 
------------------------------- Tij = 
П (1-kl) (=) + TjM + Ti П 
  
i = a group of a user in compliance with standa rd procedures (methods) adopted by the National 
Committee for Regulation of Electric Energy Industry; 
j = a class of a user in compliance with standa rd procedures (methods) adopted by the National 
Committee for Regulation of Electric Energy Industry; 
l = classes of voltages in the networks that tran sferred the electric energy up to the end user; 
Црс3 = expected average purchasing price for the el ectric energy for a month in question (p) for 
which the retail tariffs for the electric energy are established, UAH/Megawatt per year (to be calculated by the licensee as based upon the methods described in the paragraph 1). 
 kl = economic coefficient of the standard technolog ic spending of the electric energy at the first class 
of voltage.  To be determined as a ratio of the sta ndard technologic spending of the electric energy at 
corresponding classes of the voltage to the electric energy amounts transferred to the local power 
networks with the correspondent class of voltage for tr ansfer for the users at the territory of licensed 
activities within a period concerned. 
TjM = the tariff for the electric energy transfer  by the local power supply networks, UAH/Megawatt 
per year (confirmed by the National Committee for Regulation of Electric Energy Industry; 
TiП = the tariff for the electric energy supply, UAH/Megawatt per year, to ensure coverage of the 
licensee expenses for delivery of the electric energy to the users.  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 155 
 
 
 Example of calculation of retail tariff for electric energy. 
Data Unit July August 
Expected wholesale market price UAH/Megawatt per year 99.5 100.0 
Actual price of electric power 
purchases at wholesale power market UAH/Megawatt per year 78.15  
Subsidy amount UAH 3,514,647 4,271,296 
Amounts of electric energy 
purchases at wholesale power market Megawatt per year 216,180 - 
(expected) 
217,292 - (actual) 246,990 - 
(expected) 
Tariff for electric energy supplied by 
electric power station directly to 
licensee delivering electric energy 
under regulated tariffs UAH/Megawatt per year 24.7 24.7 
Amounts of electric energy 
purchases from electric power 
station Megawatt per year 690 - (expected) 
720 - (actual) 594 - (expected) 
Economic coefficient of standard 
technology spending of electric 
power     
1st class % 7.41 7.19 
2nd class % 13.02 12.85 
Tariff for electric energy tran sfer by local power networks 
1st class UAH/Megawatt per year 5.55 5.55 
2nd class UAH/Megawatt per year 29.06 29.06 
Tariff for supply of electric power 
1st group UAH/Megawatt per year 2.15 2.15 
  
The example of the calculation was given on the assumption that the licensee was not concerned with 
licence fees of the users. 
Calculation of actual average purchasing price fo r July corrected with regard to subsidies. 
78.15x217292+24.7x720+3514647 
------------------------------------------------------------ Цр-2С3факт  
= 217292+720 UAH 94.09/ 
Megawatt per year 
  
Calculation of expected average purchasing price for July not corrected with regard to amount of 
payment deviation. 
99.5x216180+24.7x690 
------------------------------------------------------------ Цр-2С3 = 
216180+690 UAH 99.26/ 
Megawatt per year 
  
Calculation of payment deviation in July. 
∆Cp-2=(94.09-99.26)x(217,2 92+720)=-UAH 1,127,122.04 WT/ACC/SPEC/UKR/5/Rev.2 
Page 156  
 
 Calculation of average purchase price for August. 
100x246990+24.7x594-1127122.04 
------------------------------------------------------------ Цр-С3 = 
246990+594 UAH 95.27/ 
Megawatt per year 
  
Calculation of retail tariffs for August. 
Tariff for users of the 1st class, 1st group. T11 = 95.27 + 5.55+2.15=UAH 110.4/Megawatt per year 1-0.0719 Tariff for users of the 2nd class, 1st group. T12 = 95.27 + 29.06+2.15=UAH 149.0/Megawa tt per year (1-0.0719)x(1-0.1285)  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 157 
 
 
 Table 6:  Goods-related Activity Licensing in Ukraine  
Table 6(a):  Goods, the import or export of which requires an activity licence  
HS Product Licensing Body Eligibility Timeframe for 
Obtaining 
Licence/ Cost of 
Licence Measure 
Description/WTO 
Justification 
Within 10 
working days 3907 40 00 00, 8523, 
8524 
 Laser-readable discs; 
polycarbonate
2 for 
production of optical 
information storage 
devices; equipment for 
laser-readable discs Ministry of 
Economy and 
European 
Integration  All agents of 
economic 
activity  
UAH 340 GATT Article 
XX (d) 
Within 10 
working days  List approved by Resolution of 
the Cabinet of 
Ministers 
No. 932 of 
5 July 2002  Holographic 
protection elements  Security Service of 
Ukraine  All agents of 
economic 
activity  
UAH 340 GATT Article 
XX (d) 
Within 9 working days  3001-3006 Narcotics, 
psychotropic 
substances and 
precursors  State Department 
for Supervision 
over Quality, 
Safety and 
Production of 
Medicines and 
Articles for 
medical Use  Note3  
UAH 340 GATT Article 
XX (b) 
Within 10 
working days  Note4 Cryptosystems and 
means for crypto-
graphic protection  Security Service of 
Ukraine  All agents of 
economic 
activity UAH 340 GATT Article 
XX (d) 
                                                      
2 For polycarbonate, an import licence which does not restrict the volume of imports, is also required. 
3 According to the Law "On Turnover of Narcotics, Psychotropic Substances, Their Analogs and 
Precursors" No. 60/95-VR of 15 February 1995 the activity, connected with the turnover of narcotics, 
psychotropic substances (with exception of some psychotropic substances and the precursors defined in this Law) is conducted by enterprises of the state and municipal form of property which have licenses for certain 
types of activity such as cultivation, development, production, storage, distribution, transportation, sending, 
purchase, selling, import, export, use and destruction of  narcotics, psychotropic substances, their analogs and 
precursors. 
It is indeed the case, when the state and municipal enterprises are eligible to apply for activity licence 
(Article 6 Law No. 60/95-VR) and certificate for import or export of narcotics, psychotropic substances and 
precursors (art. 12 Law No. 60/95- VR).  A certificate (separate permit ) to import or export narcotics, 
psychotropic substances and precursors is being issued by the Committee on Narcotics Control attached to the Ministry of Health Protection upon approval with the Security Service of Ukraine. 
4 Development of hardware, hardware and software means for cryptographic protection of information 
and cryptosystems.  Development of software means for cryptographic protection of information and cryptosystems. 
Production of hardware, hardware and software mean s for cryptographic protection of information and 
cryptosystems.  Production of software means for cryptographic protection of information and cryptosystems.  
 Production and operation of means for cryptographic protection of information and cryptosystems.  
 Certification tests and exert examination of cryptosystems and means for crypto-graphic protection of information. 
 Thematic research of means for cryptographic protection of information and cryptosystems. 
 Provision of services in the area of cryptographic protection of information. 
 Importation and exportation of means for cryptographic protection of information and cryptosystems.  
 Trading in means for cryptographic prot ection of information and cryptosystems. WT/ACC/SPEC/UKR/5/Rev.2 
Page 158  
 
 Other goods-related activities subject to licensing accor ding to Article 9 of the Law "On Licensing of 
Certain Types of Economic Activity" No. 1775-III of 1 June 2000, as amended: 
1) minerals exploration activity; 
2) production and service of arms and ammunition ther eto, cold steel arms, pneumatic arms of 
caliber exceeding 4.5 millimeters and bullet ai rspeed over 100 meters  per second, sales of 
arms and ammunition thereto, cold arms, pneum atic arms of caliber over 4.5 millimeters and 
bullet airspeed over 100 meters per second; 
3) production of explosives (under the list, establishe d by the Cabinet of Ministers of Ukraine); 
4) production of extra-dangerous chemical agents (according to the list, established by the 
Cabinet of Ministers of Ukraine); 
5) uranium ore mining; 
6) extraction of precious metals and stones, organogenic jewels and semiprecious stones; 
7) production of precious metals and stones, or ganogenic jewels and semiprecious stones; 
8) manufacture of products of precious metals and precious stones, organogenic jewels and 
semiprecious stones and trade in precious metals and stones, or ganogenic jewels and 
semiprecious stones; 
9) production of medicines, wholesale a nd retail trade in medical products; 
10) production of veterinary medications, wholesale and retail trade in veterinary medications; 
11) production of pesticides and agricultural chemic als, wholesale and retail trade in pesticides 
and agricultural chemicals; 
12) production of special-purpose devices, loaded w ith lachrymatory and irritating substances, 
devices of individual protection or offensive defensive; 
13) designing and production of special-purpose tec hnical appliances for taking information from 
communication channels, other devices for a private obtaining of information, trade in special-purpose technical appliances for taki ng information from communication channels 
and other devices for a private obtaining of information; 
14) development, production, utiliza tion, operation, certification testing, subject research, 
expertise, importation and exportation of cr yptosystems and means of cryptographic 
protection of information, providing services in  the sphere of cryptographic protection of 
information, trade in cryptosystems and means of cryptographic protection of information; 
15) designing, production, introduction, certificati on testing, importation and exportation of 
holographic protection of elements; 
16) manufacture of forms of securities and documents of obligatory accounting; 
17) transportation of oil and petroleum products by a trunk pipeline, transportation of natural gas 
and oil gas by trunk pipelines and its distribution; 
18) development, production, preparation, storage,  transportation, purchase, carriage, importation, 
exportation and liquidation of drugs and psychotropics and their precursors; 
19) cultivation and utilization of plants, cont aining drugs, for the industrial purposes; 
20) storing, processing, and metallurgical treatment  of scrap ferrous and non-ferrous metals; 
21) collection, primary processing of wastes and scr ap of non-ferrous metals and precious stones, 
organogenic jewels and semiprecious stones; 
22) collection and storage of certain kinds of wast es as secondary raw materials (under the lists, 
established by the Cabinet of Ministers of Ukraine); 
23) production of discs for laser reading systems; 
24) exports and imports of e quipment and discs for laser reading systems; and 
25) production of perfumes and cosmetics with the use of ethyl alcohol.  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 159 
 
 
 Table 6(b):  Goods, the import or export of which requires a licence on the right to import  
HS Product Licensing 
Body Eligibility Cost of 
Licence Measure 
Description/WTO 
Justification 
2207, 
2208 202900, 
2208 208900 Ethyl alcohol, cognac, fruit 
spirits  Ministry of 
Economy and 
European 
Integration  Only designated 
state enterprises  UAH 170,000 GATT Article 
XX (b and d) 
2204, 
2205, 
2206, 
2208 Alcoholic beverages: Products 
obtained by alcoholic 
fermentation of materials 
containing sugar or produced on the basis of food alcohol 
with an ethyl alcohol content 
higher than 1.2 per cent of 
volumetric units.   Ministry of 
Economy and 
European 
Integration  All agents of 
economic 
activity UAH 250,000 GATT Article 
XX (b and d) 
2402, 2403  Tobacco products: Cigarettes, 
cigarettes with a cardboard 
holder, cigars, cigarillos and 
also pipe tobacco, snuff, 
chewing tobacco and other 
products from tobacco or its 
substitutes, which influence the 
physiology of a person while 
consuming them.   Ministry of 
Economy and 
European 
Integration  All agents of 
economic 
activity  UAH 250,000 GATT Article 
XX (b and d) WT/ACC/SPEC/UKR/5/Rev.2 
Page 160  
 
  Table 6(c):  Licensing in Ukraine (Services-related Activities)
 
1) Design, production, introduction,  servicing and research of efficiency of systems and devices 
of technical protection of information, providing services in the sphere of technical protection of information; 
2) Supply of natural gas at contro lled and non-controlled tariffs; 
3) Storage of natural gas in the amounts, exceedi ng the rate, specified by terms of licensing; 
4) Centralized water supply and draining; 
5) Design, testing, production, operation of carri er rockets, space vehicles and their component 
parts, earth space infrastructure and its component s, equipment, which is a constituent part of 
a space segment of satellite systems; 
6) Disinfection, disinsection and deratization works; 
7) Medical practice; 
8) Treatment of donor blood and its com ponents, making medications thereof; 
9) Veterinary practice; 
10) Organization and maintenance of totalizators,  gambling houses, issuance and arranging of 
lotteries; 
11) Building activity (exploration and projecting wo rks for the purpose of construction, erection 
of bearing and filler structures, construction and assemblage of engineering and transport 
networks); 
12) Providing services in conveyance of passengers and cargoes by air transport; 
13) Providing services in conveyance of passengers and cargoes by river and sea transport; 
14) Providing services in conveyance of passengers a nd cargoes by motor transport of public use 
(except services in conveyance of passengers and their luggage by taxi); 
15) Providing services in conveyance of passengers and their luggage by taxi; 
16) Providing services in conveyance of passengers and cargoes by railway transport; 
17) Operations in the area of treatment of dangerous waste products; 
18) Design, assemblage, technical maintenance of means of fire protection and heating systems, 
evaluation of fire-prevention situation within the objects; 
19) Testing of fire safety of substances, materials, building structures, wares and equipment, as 
well as assessment of conformity of fire engi neering, fire-engineering equipment and fire-
protection products with the established norms; 
20) Providing services in guarding of state a nd other property, guarding of citizens; 
21) Performing topography-and-geodesic and cartographic works; 
22) Execution of aviation and chemical works; 
23) Sending of postal orders, non-registered and re gistered letters, post cards, postal packages and 
parcels under 30 kilograms; 
24) Providing services in the sphere of radio communication (with the use of radio frequencies); 
25) Providing services in telecommunication (except departmental objects); 
26)
 Technical servicing of television, radio and wi re broadcasting networks within the framework 
of industrial operation; 
27) Arrangement of foreign, home and intern ational tourism; arranging of excursions; 
28) Recreational and sports activity; 
29) arranging and conducting of trainings of  sports professionals and amateurs; 
30) training of sportsmen for participation in co mpetitions in various sports, recognized in 
Ukraine; 
31) Activities of arbitration directors (adminis trators of property, sanitation managers, 
liquidators); 
32) Mediation in employment abroad; 
33) Professional activity in the equity market; 
34) Fulfilment of land planning and land appraisal works;  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 161 
 
 
 35) Design, construction of new and reconstructi on of the existing reclamation systems and 
individual objects of engineering infrastructure; 
36) Activity related to the industrial fishing at industrial areas of water bodies of fish industries, 
except inner water bodies (ponds) of fish industries; and 
37) mediation activity of a customs broker and customs carrier. 
Source: Article 9 of the Law "On Licensing of Certain Types of Economic Activity" No. 1775-III of 
1 June 2000, as amended. WT/ACC/SPEC/UKR/5/Rev.2 
Page 162  
 
 Table 6(d):  Documentation requirements for obtaining an activity licence
 
The application must contain the following information: 
- name; 
- location; 
- banking details and identifica tion code – for a legal entity; 
- surname, name, patronymic and passport details ( series, number, issuing authority, date of 
issuance and residence), and identification number of a physical person who is the payer of taxes and other mandatory  payments – for  a physical person; 
- type of business activity for which an a pplicant intends to obtain a licence; and 
- copy of the certificate of state registration of the agent of entrepreneurial activity or copy 
of the certificate on its inclusion into the Unified State Register of Enterprises and Organizations of Ukraine certified by a notary or by the authority which issued the original document. 
Documentation required to obtain a licence to impo rt and export alcoholic beverages and tobacco 
products: 
- an application form to obtain a licence to import and export ethyl, cognac and fruit spirits, 
distilled grape ethyl spirits, distilled fruit et hyl spirits, alcoholic beverages and tobacco 
goods; 
- a copy of the certificate on state registration of the agent of entrepreneurial activity, 
certified by a notary or by the authority which issued the original document; and 
- a copy of the document which confirms the sp ecial authorities granted by the Cabinet of 
Ministers of Ukraine to the state-owned ente rprise or organization to carry out import and 
export of ethyl, cognac and fruit spirits, distille d grape ethyl spirits and distilled fruit ethyl 
spirits, certified by the head's signature a nd stamped with a company's seal (in case of 
submission of the documents for receipt of a licence to carry out the given operations). 
Information required for an activity licence to import and export optical media equipment and discs: 
Application including the following information: 
- name of the legal entity with all its s ubsidiaries and branches, and its location; 
- surname, name, patronymic and passport details ( series, number, issuing authority, date of 
issuance and residence) – for a physical person; 
- contact telephone number; 
- organizational and legal form; 
- identification code for a legal entity (ide ntification number for a physical person); 
- banking details; 
- type of activity (export or import, optical media equipment or discs); 
- location of effectuation of the activity; and 
- obligations concerning the fulfilmen t of licensing terms and conditions. 
Required documentation attached  to the application form: 
- copy of the certificate on state registration of the agent of entrepreneurial activity or copy 
of the certificate on its inclusion into the Unified State Register of Enterprises and  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 163 
 
 
 Organizations of Ukraine certified by a notary or by the authority which issued the 
original document; 
- list of the management of an agent of entrep reneurial activity (its head, deputy heads and 
chief accountant), including their surnames, names and patronymics, positions and office 
telephone numbers signed by the head and duly stamped, as well as the reference 
concerning owners, signed by the head of a company and duly stamped; 
- duly certified copies of the founding documents (for a legal entity); 
- duly certified copies of the documents which c onfirm ownership rights or lease of storage 
facilities; 
- duly certified copies of the documents which confirm the information on the premises 
where wholesale and/or retail trade in opti cal media discs (for a licence to import discs) 
shall take place; 
- information on availability of optical media disc remainders as of 21 April 2002 (for 
export and import of optical media discs) – in case of such availability; and 
- list of main components for specialized equipment for production of optical media 
systems, export or import of which are subject to licensing pursuant to laws (for licenses 
on export and import of equipment).   
Requirements for obtaining a licence for the produc tion, wholesale and retail trade in pesticides and 
agro-chemicals:   
Application containing the following: 
- name of the legal entity with all its s ubsidiaries and branches, and its location; 
- surname, name, patronymic and passport details ( series, number, issuing authority, date of 
issuance and residence) – for a physical person; 
- identification code for a legal entity (ide ntification number for a physical person); 
- type of activity; 
- location of effectuation of the activity; 
- obligations concerning the fulfilment of licensing terms and conditions; and 
- a copy of the certificate of state registrati on of the agent of entrepreneurial activity or 
copy of the certificate of its inclusion into the Unified State Register of Enterprises and 
Organizations of Ukraine certified by a notary or by the authority which issued the 
original must be attached to the application form.   
In order to produce pesticides and agro-che micals, business agent must posses the following 
documentation: 
- normative documents of standardization (GOST [State Standards of the former Soviet 
Union, which still apply in Ukraine], TU [T echnical Terms and Cond itions], DSTU [State 
Standards of Ukraine]) for production of goods of the given quality; 
- technological regulations; 
- positive conclusions of sanitary and epidemiological service; 
- permit to commence work; 
- permit to produce testing groups of domes tic pesticides and agro-chemicals; and 
- rules, drafted and approved by business agent on the basis of the approved technological 
regulations. WT/ACC/SPEC/UKR/5/Rev.2 
Page 164  
 
 In order to carry out business activities on wholesale and retail trade in pesticides and agro-chemicals, 
a business agent must posses the following: 
- storing facilities for storage of pesticides and agro-chemicals.  Such storing facilities must 
meet sanitary and hygienic requirements and safety engineering rules, as well as to have sanitary passports; 
- quality certificates for pesticides and agro-chemicals; 
- regulations to carry out trade operations; 
- rules on labour protection, production sanitation and fire safety; 
- duties regulation; and 
- positive conclusions of sanitary and epidemiological service. 
A business agent must sell pesticides and agro-c hemicals to the population in a small-packed form 
with mandatory instructions printed in Ukrainian concerning the safe use of such pesticides and agro-
chemicals.  Employees of business agents whose ac tivities relate to wholesale and retail trade in 
pesticides and agro-chemicals must have special e ducation and training, undergo retraining once per 
three years and medical examination, as well as have  a permit to work with the said pesticides and 
agro-chemicals, certificate and medical book. 
Documentation required to obtain a certificate to import/export narcotics, psychotropic substances and 
precursors:  
- application on a company's letterhead addressed to the Head of the Committee, containing 
the following information: 
- purpose of importation; 
- complete names, exact addresses and telephone (telexes) numbers of the importer 
(consignee) and exporter; 
- international non-proprietary name of the impor ted produce, if such name is available, 
and/or the first name under which the said  produce was issued, and/or the name under 
which it is manufactured in importing or exporting countries; 
- amount of narcotics, psychotropic substan ces and precursors subject to importation; 
- medical form of a narcotic, psyc hotropic substance and precursor; 
- name and amount of narcotics, psychotr opic substances and precursors which are 
imported under a contract and included to the List of narcotics, psychotropic substances, 
their analogs and precursors that are subject to  the special control pursuant to applicable 
laws of Ukraine (hereinafter "those includ ed to the list of controlled substances"); 
- name of the producer; 
- number of the contract for supply; 
- price (sum) of the contract for supply; 
- name and number of tare items – for narcoti cs, psychotropic substances and precursors in 
the form of substance used for production of medicines; 
- type of transport for supply; 
- delivery term for supply; 
- name of the crossing point at state border of Ukraine through which importation shall be 
made; 
- invoice, cargo declaration, cargo, customs and transportation documents which contain 
the information on the amount of narcoti cs, psychotropic substances and precursors; 
- a company's Charter certified by a notary; 
- a copy of the contract, according to whic h importation of narcotics, psychotropic 
substances and precursors into Ukraine is  effectuated, certified by a notary; 
- certificate of Medicines Registration Bureau of the Ministry of Health Protection of 
Ukraine on registration of medicines that are imported into Ukraine;  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 165 
 
 
 - quality certificate of a narcotic or psycho tropic substance with indication of its 
serviceable life (quality passport of the producer is attached as to precursors); 
- obligations of the company on use of narco tics, psychotropic substances and precursors 
only for the declared purposes (import); and 
- a licensed copy for carrying out the given activity in the field of turnover of narcotics, 
psychotropic substances and precursors, certified by a notary. 
Information required to obtain a licence for produc tion, wholesale and retail trade in medicines:  
- name of the legal entity with all its s ubsidiaries and branches, and its location; 
- surname, name, patronymic and passport details ( series, number, issuing authority, date of 
issuance and residence) – for a physical person; 
- identification code for a legal entity (ide ntification number for a physical person); 
- type of activity; 
- location of effectuation of the activity;  
- obligations concerning the fulfilment of licensing terms and conditions; and 
- a copy of the certificate of state registrati on of the agent of entrepreneurial activity or 
copy of the certificate of its inclusion into the Unified State Register of Enterprises and 
Organizations of Ukraine certified by a notary or by the authority which issued the original to be attached to the application form. 
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 166  
 
 Table 7:  Required payment for expertise,  State registration and re-registration 
 
of pesticides and agrochemicals in Ukraine  
Amount of payment in UAH 
for Chemicals of foreign and 
domestic production No. Types of works 
registration expertise 
State registration of pesticides and agrochemicals (except for bio-chemicals and growth regulators)  
- for a period of 5 years  16,500 5,500 
- for a period of 2 years  6,600 5,500 1  
- for a period of 1 year  3,300 5,500 
State registration of chemicals for combating home insects and rodents  
- for a period of 5 years  8,250  2,750  
- for a period of 2 years  3,300  2,750  2  
- for a period of 1 year  1,650  2,750  
State registration of bio-chemic als and growth regulators  
- for a period of 5 years  5,500  2,750  
- for a period of 2 years  2,750  2,750  3  
- for a period of 1 year  1,375  2,750  
Change of period for state registra tion of pesticides and agrochemicals (except for bio-chemicals and growth 
regulators)  
- up to 5 years 13,200  1,650  4  
- for 1 year period 3,300  1,650  
Change of period for state registration of ch emicals for combating home insects and rodents  
- up to 5 years  6,050  1,650  5  
- for 1 year period  1,650  1,650  
Change of period for state registration of bio-chemicals and growth regulators 
- up to 5 years  4,125  1,650  6  
- for 1 year period  1,375  1,650  
State registration of previously registered chemicals  
1. Expansion of sphere of application up to 5 specimen or hazardous objects:  
- for a period of 5 years  2,750 1,650  
- for a period of 2 years  1,650 1,650  
- for a period of 1 year  1,100 1,650  
2. Expansion of sphere of applicatio n of a chemical up to more than fi ve specimen or hazardous objects:  
- for a period of 5 years  5,500  1,650  
- for a period of 2 years  2,750  1,650  
- for a period of 1 year  1,650  1,650  
3. Change of chemical's directions for use:  
- for a period of 5 years  3,300  1,650  
- for a period of 2 years  1,650  1,650  
- for a period of 1 year  1,100  1,650  
4. Change of chemical's expenditure norm:  
- for a period of 5 years  -  1,650  
- for a period of 2 years  -  1,650  
- for a period of 1 year  -  1,650  
5. Minor change in chemical's preparative form:  
- for a period of 5 years  -  1,650  
- for a period of 2 years  -  1,650  7  
- for a period of 1 year  -  1,650  
State re-registration of pesticides and agrochemicals (except for bio-chemicals and growth regulators)  
- for a period of 5 years  8,250  1,650  
- for a period of 2 years  3,300  1,650  8  
- for a period of 1 year  1,650  1,650  
State re-registration of chemicals for combating home insects and rodents 
- for a period of 5 years  4,125  1,650  
- for a period of 2 years  1,650  1,650  9  
- for a period of 1 year  825  1,650   WT/ACC/SPEC/UKR/5/Rev.2 
 Page 167 
 
 
 Amount of payment in UAH 
for Chemicals of foreign and 
domestic production No. Types of works 
registration expertise 
State re-registration of bio-ch emicals and growth regulators  
- for a period of 5 years  2,750  1,650  
- for a period of 2 years  1,650  1,650  10  
- for a period of 1 year  550  1,650  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 168  
 
 Table 10(a):  Customs clearance fees in Ukraine
 
Customs Fee Type Rate (US dollars) 
1. Customs clearance of goods and ot her items with customs value:  
 - up to $100 Free 
 - $100-1000 5 
 - more than $1000 0.2% of the customs 
value of goods and 
other items, but no 
more than the 
equivalent of $1000 
2.  Customs clearance of property temporar ily imported to (exported from) Ukraine upon a 
commitment to (re-import) re-export it: 30 
 - for every customs cargo declaration 30 
 - for every additional sheet supplemented thereto 15 
3. Customs clearance of goods in transit:  
 - for every customs cargo declaration 7 
 - for every additional sheet supplemented thereto 3 
4.  Customs clearance of goods brought  to customs licence warehouse:  
 - for every customs cargo declaration 30 
 - for every sheet supplemented thereto 15 
5.  Keeping goods and other items under customs control, per day:  
 - first 15 calendar days free 
 - every next calendar day 0.05% of the customs 
value of goods and 
other items 
6.  Customs clearance of goods and other items in  the customs control zones, on territories and 
premises of enterprises where such goods and other items are stored, or during non-working 
hours (per one hour work of one customs officer):  
 - during working hours 20 
 - during non-working hours, on Saturdays, Sundays 40 
 - holidays 50 
7. Refusal from ordered services provided in S ection 6 hereof, without giving a previous notice 
in writing: 20 
8.  Customs clearance of an individual means of transport provided it is used for carriage of 
goods and other items in amount s subject to customs duty: 10 
9. Issuing certificates and permits for regist ration (re-registration) of means of transport 
imported to Ukraine, including brought to Uk raine for temporary use, and also numbered 
aggregates that are subject to registratio n with the State Automotive Inspectorate: 15 
10.Storage of goods and other items at the cu stoms warehouses excluding goods and other items 
specified in the Customs Code of Ukra ine, Article 86), per day (for 1 kg):  
 - first 10 calendar days 0.1 
 - every next calendar day 0.5 
11.Storage of goods and other items subject to compulsory transfer to and keeping under the 
customs and specified in the Customs Code of Ukraine, Article 86, per day (for 1 kg):  
 - first 10 calendar days 0.1% of the value of 
goods and other items 
 - every next calendar day 0.5% of the value of 
goods and other items 
12.Issuing the certificate recognizing the enterprise as  a declarant (for a period up to one year): 1,500 
13.Prolongation (reregistration) of the certificat e recognising the enterprise as a declarant 
(annually) 1,000 
14.Issuing the certificate of confirmation of delivery of goods accepted under export control 
regime of Ukraine 100 
  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 169 
 
 
 Overtime and off-location customs cleara nce fees, applicable from 1 January 2005:  
Description of Operation Per One Hour of Work of a Customs Body Official 
during the Customs Clearance of One Consignment of 
Goods or One Vehicle, US$ 
Customs clearance of goods and vehicles performed out of the location of customs bodies:   
During working time 20  
During overtime, night time and on weekends  40  1.  
On holidays and nonworking days  50  
Customs clearance of goods and vehicles performed at the 
location of customs bodies beyond the hours of operation 
set for customs bodies:  
During overtime, night time and on weekends  40  2.  
On holidays and nonworking days  50  
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 170 Table 11:  Rates of excise tax on alcoholic beverages, ethyl alc ohol, tobacco, certain motor vehicles, etc. in Ukraine (as of J uly 2004)  
Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
ALCOHOLIC BEVERAGES - (for imported – temporary for pre-accession period) 
2203 00 Malt beer  UAH 0.23 per litre 
2204 
except 2204 10, 
2204 30, 
2204 21 100, 
2204 29 100 Wine of fresh grapes with sugar cont ent not exceeding 0.3g/100cm3 (dry) and 
fortified vintage wine 
 UAH 3 per litre 
 UAH 0.25 per litre 
 
2204 except 2204 10, 
2204 30, 
2204 21 100, 
2204 29 100 Wine of fresh grapes with sugar conten t more than 0.3g/100cm3 (dry) (half-dry, 
semisweet) UAH 0.92 per litre 
 
2204 
except 2204 10, 
2204 30, 
2204 21 100, 
2204 29 100 Wine of grape, containing added alcohol  and strong wines (fortified), except for 
vintage fortified wine UAH 0.1 per litre of 100% alcohol 
 
2204 10 2204 21 100 
2204 29 100 Sparkling wine, champagne: 
Sparkling wines containing in the name the word " Сhampagne" 
Aerated wines (excluding sub-item 2204 10) UAH 5 per litre UAH 1.6 per litre 
2204 З0 Only wine must (includi ng wine materials for cognac and champagne) for production 
of cognac spirit and sparkling wines 
 0 
(UAH 1.0 per litre of wine materials when sold to intermediaries and population, 
produced at primary production facilities) 
2205 Vermouth and other wine of fresh grapes  flavoured with pl ants or aromatic 
substances (with Article 2 of  this Law been considered) UAH 5 per litre UAH 2.6 per litre 
 
2206  Fermented drinks of fruits and berries (c ider, perry and other) containing added 
alcohol, mixtures of fermen ted beverages and mixtures of fermented beverages and 
non-alcoholic beverages (except for fermented drinks of fruit and berries (cider, perry 
and other) containing no added alcohol. UAH 5 per litre UAH 0.1 per litre of 100% alcohol 
(temporary till 1 January 2006 - UAH 
0.07 per litre of 100%)  
2206  Only fermented drinks of fruits and berri es (cider, perry and other) containing no 
added alcohol UAH 1.2 per litre  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 171Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
2207 Non-denaturated ethyl alcohol of an alc oholic strength by volume of not less than 
80% vol; spirits, liqueurs and other spirit uous beverages ethyl alcohol and other 
denaturated alcohols UAH 16 per litre of 100% alcohol 
 UAH 16 per litre of 100% alcohol 
UAH 2.0 per litre of 100% alcohol: 
for use by health establishments and 
institutions in therapy processes and 
laboratory research; 
for use in manufacture of explosives, 
perfumes, nitrocellulose, and half-
finished products; for manufacture of 
alcohol-containing juices, fruit 
drinks, extracts intended for 
industrial processing; 
for use by manufacturers of pectin, 
alcohol vinegar, medicines (including 
blood components and preparations 
made on their basis), with the 
exception of medicinal drugs in the 
form of balsam; 
for use by primary wine-making 
enterprises in manufacture of grape, 
fruit, and other wine materials and 
must 
until 1 January 2005 for manufacture 
of products included in the list 
approved by the CMU; 
for use by National agrarian-
industrial association "Massandra" 
within the quotas, set by the CMU, 
for production of vintage wines 
(Suspended for 2004 by Law of 
Ukraine "On State budget for 2004") 
2208 except 2208 20 Non-denaturated ethyl alcohol of an alcoho lic strength by volume of less than 80% 
vol; spirits, liqueurs and other spirituous be verages, alcoholic se mi-products used in 
the manufacture of beverages (with Article 6 of this Law taken into consideration) UAH 16 per litre of 100% alcohol 
 
2208 20 except 2208 20 1200, 
2208 20 2900 – brandy 
only, 
2208 20 8900 – cognac 
spirit only Spirits obtained by distilling grape wine or grape marc  UAH 16 per litre of 100% alcohol 
 
2208 20 1200 Cognac UAH 16 per litre of 100% alcohol UAH 3 per litre of 100% alcohol 
2208 20 2900 Brandy only UAH 16 per litre of 100% alcohol UAH 3 per litre of 100% alcohol 
2208 20 8900 Cognac spirit only UAH 16 per litre of 100% alcohol  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 172 Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
TOBACCOS 
2401 Unmanufactured tobacco 
Tobacco refuse 0/0%5 
2402 10 00 00  Cigars (cheroots), cigarillos (cig arettes), containing tobacco UAH 20 per 100/5% 
2402 20 90 10  Cigarettes without filters from tobacco  UAH 5 per 1,000/5% 
2402 20 90 20  Cigaretter with filter from tobacco UAH 11,5 per 1,000/5% 
2403 except 
2403 99 10 00, 
2403 10 Other manufactured tobacco and manufactured tobacco substitutes; "homogenised" 
or "reconstituted" tobacco; t obacco extracts and essences: 0/0% 
2403 10  Smoking tobacco (whether or not containing toba cco substitutes in any proportion) UAH 10 per kg/5% 
2403 99 10 00 Chewing tobacco 
Snuff UAH 10 per kg/5% 
PETROLEUM 
 Light oils and preparations:  
2710 00 110 For undergoing a specific process €12 per 1,000 kg 
2710 00 150 For undergoing chemical transformation by  a process other than those specified in 
respect of subheading 2710 00 11 €12 per 1,000 kg 
 Special spirits:  
2710 00 210 White spirit €12 per 1,000 kg 
2710 00 250 other €20 per 1,000 kg 
 Motor spirit:  
2710 00 310  Aviation spirit €20 per 1,000 kg 
2710 00 370  Jet fuel €20 per 1,000 kg 
2710 00 390  Other light fractions  €20 per 1,000 kg 
 Medium oils:  
2710 00 410  For undergoing a specific process €20 per 1,000 kg 
2710 00 450  For undergoing chemical transformation by a process other than those specified in 
respect of subheading 2710 00 410 €12 per 1,000 kg 
 For other purposes:  
 Kerosene:  
2710 00 510 Jet fuel €12 per 1,000 kg 
2710 00 590 
2710 00 550 Other €20 per 1,000 kg 
2710 00 330 
2710 00 350 Only motor spirit (DSTU 320.00149943.015-2000)  containing not less than 5% of 
high-octane oxigen-containing agents (T UU 30183376.001) or ethyl-tret-butyl ether 
(ЕТБЕ ) А-76Ек, А-80Ек. А-92Ек, АІ-93Ек, А-95Ек, А-98Ек €30 per 1,000 kg 
(€60 per 1,000 kg 
from 1 January 2004 until 1 January 2005) 
2710 00 330 2710 00 350 Motor spirit: А-72, А-76, А-80; А-90, А-91, А-92, АІ-93, А-95, А-96, А-98 and 
other type motor spirit €60 per 1,000 kg 
 
2710 00 350 Motor spirit, containing tetraethyl lead  €90 per 1,000 kg 
2710 00 610 
2710 00 650 
2710 00 690 Heavy oils (diesel fuel) €30 per 1,000 kg 
                                                      
5 fixed amounts for the unit of products sold / per-cent of turnover у of products sold.  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 173Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
3811 19 00 00  High octane oxygen-containing additives to gasoline (TUU 30183376.001 - 2000)  0 
MOTOR VEHICLES 
(for domestic manufacturers on condition of annual output of 1,000 automobiles or 1,000 motorcycles until 1 January 2007) 
 Vehicles, with spark-igni tion internal combustion reciprocating piston engine:   
87.0321 100 Of a cylinders capacity not exc eeding 1,000 cm3, new €0.2 per 1 cc 0 
87.0321 90 Of a cylinders capacity not exceeding 1,000 cm3, used:   
87.0321 901 Up to 5 years inclusive  €0.4 per 1 cc 0 
87.0321 903 From 1 to 5 years €0.6 per 1 cc 0 
87.0322 110 
87.0322 190 Of a cylinders capacity exceeding 1,000 cm3 but not exceeding 1,500 cm3, new: 
motor caravans; other €0.2 per 1 cc 0 
87.0322 90 Of a cylinders capacity exceeding 1,000  cm3 but not exceedi ng 1,500 cm3, used;  
87.0322 901 Up to 5 years inclusive  €0.4 per 1 cc 0 
87.0322 903 Over 5 years €0.6 per 1 cc 0 
87.0323 110 
87.0323 190 Of a cylinders capacity exceeding 1,500 cm3 but not exceeding 2,200 cm3 , new: 
motor caravans; other  €0.3 per 1 cc 0 
87.0323 110 
87.0323 190 Of a cylinders capacity exceeding 2,200 cm3 but not exceeding 3,000 cm3, new: 
motor caravans; other  €0.6 per 1 cc 0 
87.0323 90 Of a cylinders capacity exceeding 1,500  cm3 but not exceedi ng 2,200 cm3, used;  
87.0323 901 Up to 5 years inclusive €0.6 per 1 cc 0 
87.0323 903 Over 5 years €0.9 per 1 cc 0 
87.0323 90 Of a cylinders capacity exceeding 2,200  cm3 but not exceedi ng 3,000 cm3, used:  
87.0323 901 Up to 5 years inclusive €1.2 per 1 cc 0 
87.0323 903 Over 5 years €1.8 per 1 cc 0 
87.0324 100 Of a cylinders capacity exceeding 3,300 cm3, new €1.0 per 1 cc 0 
87.0324 90 Of a cylinders capacity exceeding 3,000 cm3, used  
87.0324 901 Up to 5 years inclusive €2.0 per 1 cc 0 
87.0324 903 Over 5 years €3.0 per 1 cc 0 
 Other vehicles, with internal  combustion engine (diesel or semi-diesel, that work on 
fuel with low-octane number)  0 
87.0331 100 Of a cylinders capacity not exc eeding 1,500 cm3, new €0.2 per 1 cc 0 
87.0331 90 Of a cylinders capacity not exceeding 1,500 cm3, used:  
87.0331 901 Up to 5 years inclusive €0.4 per 1 cc 0 
87.0331 903 Over 5 years €0.6 per 1 cc 0 
87.0332 110 
87.03 32 190 Of a cylinders capacity exceeding 1,500 cm3 but not exceeding 2,500 cm3, new: 
motor caravans; other €0.3 per 1 cc 0 
87.03 32 90 Of a cylinders capacity exceeding 1, 500 cm3 but not exceedi ng 2,500 cm3, used  
87.0332 901 Up to 5 years inclusive €0.6 per 1 cc 0 
87.03 32 903 Over 5 years €0.9 per 1 cc 0 
87.0333 110 
87.0333 190 Of a cylinders capacity exceeding 2,500 cm3,  new: motor caravans; other €0.8 per 1 cc 0 
87.0333 90 Of a cylinders capacity exceeding 2,500 cm3, used  
87.0333 901 Up to 5 years inclusive €1.6 per 1 cc 0 
87.0333 903 Over 5 years €2.4 per 1 cc 0 
87.0390 Other (with electric motors, other) €100 per unit 0  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 174 Rates of Excise Tax per Unit HS Code Description of Commodity 
according to HS Imported For Domestic Manufacturers 
87.0310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles €0.6 per 1 cc 0 
87.1140 000 
87.1150 000 
87.1190 000 Motor-cycles (including mopeds) and cycles fitted with an auxiliary motor, with or 
without side-cars, with a cylinder capacity exceeding 500 cm3 but not exceeding 
800 cm3; exceeding 800 cm3; other  €0.2 per 1 cc 0 
87.1610 990 Trailers and semi-trailers, for housing, exceeding 3,500kg 100 per 1 cc 0 
 
  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 175 Table 12: Goods subject to import licensing in Ukraine  
Table 12(a):  Goods subject to import licensing upon prior approval  
Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure 
Description/  
WTO Justification  Timeframe for 
Prior Approval/ 
Fee for Prior 
Approval  
Issuance of Licence: Ministry of Economy 
and European Integration 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  Prior Approval: 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) 
Prior Approval: The State Technological 
Center for protection of Land Fertility of 
the Ministry of Agricultural Policy of 
Ukraine for the Imports of agrochemicals 
(plant growth regulators – code 3808 90) Resolution of the Cabinet of 
Ministers No. 1722 of 23 
December 2004 "On the List 
of Goods, Export and Import 
of which is Subject to 
Licensing, and Which Fall 
under the Quota Regime in 
2005 Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (b) Within 10 
working days of 
receipt of the 
required 
documentation 
 
Free of charge 
Issuance of Licence: Ministry of Economy and European Integration 3907 40 00 00 Optical polycarbonates for production of 
discs for laser reading systems   
Prior Approval: The Ministry of 
Education and Science   "" Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (d) Within 15 
working days of 
receipt of the 
required 
documentation  
Free of charge 
Issuance of Licence: Ministry of Economy 
and European Integration 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  Prior Approval: 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 "" Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (b) Within 15 
working days of 
receipt of the 
required 
documentation 
 
Free of charge 
Issuance of Licence: Ministry of Economy and European Integration 8415, 8418, 8424 10,  8476 21 00 00, 
8476 81 00 00,  
9304 00 00 00  Products, which may contain ozone-
depleting substances 
Prior Approval: Ministry of 
Environmental Protection   "" Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (b) Within 15 
working days of 
receipt of the 
required 
documentation 
 
Free of charge  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 176 Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure 
Description/  
WTO Justification  Timeframe for 
Prior Approval/ 
Fee for Prior 
Approval  
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 90 00, 
2903 45 10 00, 2903 45 15 00, 
2903 45 25 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: Ministry of 
Environmental Protection   
 "" Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (b) Within 15 
working days of 
receipt of the 
required 
documentation 
 
Free of charge 
Issuance of Licence: Ministry of Economy 
and European Integration 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 Prior Approval (Clearing): Ministry of 
Finance "" Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (d) Within 15 
working days of 
receipt of the 
required 
documentation  
Free of charge 
Issuance of Licence: Ministry of Economy and European Integration 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 Prior Approval (Clearing): Ministry of 
Finance "" Import Licensing, 
without quantitative 
restriction. GATT 
Article XX (d) Within 15 
working days of 
receipt of the 
required 
documentation 
 
Free of charge 
  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 177Table 12(b): Goods subject to import approval  
Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or the Date of 
Elimination 
9303-9306 arms, ammunition, defence military 
equipment and special components for 
production thereof Cabinet of Ministers of Ukraine after agreement 
with respective committees of the Verkhovna 
Rada of Ukraine (Parliament) Law on Foreign Economic 
Activities No. 959-XII dated 16 
April 1991 GATT Article XXI (b) 
3602 explosive substances "" "" GATT Article XXI (b) 
2844 50 
8401 nuclear materials (i ncluding materials 
in the form of heat-radiating 
assemblages), technologies, equipment, 
mounts, special non-nuclear materials 
and connected thereto services, sources 
of ionizing radiation "" "" GATT Article XXI (b) 
 other types of products, technologies 
and services, which now are used to 
develop arms and military equipment 
or present state secret of Ukraine that is 
determined by the laws of Ukraine "" "" GATT Article XXI (b) 
2616 
2843 precious metals and alloys  "" "" GATT Article XX (c ) 
7018 
7103 
7104 
7105 precious stones "" "" GATT Article XX (c ) 
 narcotic and psychotropic means "" "" GATT Article XX (b) 
7112 
7204 
7404 00 
7503 00 
7602 00 
7802 00 
7902 0000 
8002 0000 Scrap Metal State Administra tions on Ecology and Natural 
Resources in regions of Ukraine, Kiev and 
Sevastopol cities, th e Committee on Ecology 
and Natural Resources of Autonomous republic 
of Crimea governed by the Ministry of 
Environmental Protection Law on Scrap Metal No. 619-
XIV dated 5 May 1999 
 GATT Article XX (g)  
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 178  
Table 12(c)  Goods subject to import licensi ng, for which no prior approval is necessary  
Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description/  
WTO justification  
2833 25 00 00 Copper sulphate Issuance of Licence: Ministry of Economy 
and European Integration Resolution of the Cabinet of 
Ministers No. 1722 of 23 December 
2004 "On the List of Goods, Export 
and Import of which is Subject to 
Licensing, and Which Fall under 
the Quota Regime in 2005 Import Licensing, without 
quantitative restriction. GATT 
Article XX(g) 
4907 00 10 00,  4907 00 91 00,  
4907 00 99 00 Unused postage, excise  labels and similar 
products being in circulation or have to be in 
circulation in the country of destination; 
stamp-impressed paper   Issuance of Licence: Ministry of Economy 
and European Integration "" Import Licensing, without 
quantitative restriction. GATT 
Article XX(d)  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 179Table 13:  Anti-dumping measures taken by Ukraine  
Commodity that is subject to the Anti-
dumping Investigation Country of Origin of the 
Commodity Results of Investigation and Measures Taken 
COMPLETED ANTI-DUMPING INVESTIGATIONS 
- Artificial fur and Articles thereof  
(HS code – 4304 00 00) 
- Pile fabrics and terry fabrics  
(HS code - 6001) Republic of Belarus On 23 February 2001, by Decision No. AD-15/ 2001/52-54 of the Interdepartmental Commission on International 
Trade, final anti-dumping meas ures, in the form of an anti-dumping duty for artificial fur – 179.70%; pile fabrics – 
53.29% (of the customs value of the commodity, we re introduced for a period of five years. 
Electric filament lamps  
(HS code – 8539 22 90 00) Russian Federation On 7 December 2000, by Decision No. AD-11/2000/52-39 А of the Interdepartmental Commission on International 
Trade, final anti-dumping measures in the form of a an ti-dumping duty in the amount 97.50% of the customs value 
of the commodity, were introduced for a period of five years. 
Fiberboard of wood  
(HS code- 4411 11 00 00) Republic of Belarus On 12 July 2002, Deci sion No. AD-45/2002/52-61 of the Interdepartmen tal Commission on International Trade, 
final anti-dumping measures , in the form of an anti-dumping duty in th e amount of 68.75% of the customs value of 
the commodity, were introduced for a period of five years.  
Crossing pieces  (HS code - 8608 00 10 00) Russian Federation On 5 July 2002, by De cision No. AD-43/2002/52-63 of the Interdepar tmental Commission on International Trade,  
final anti-dumping measures , in the form of an anti-dumping duty in th e amount of 59.4% of the customs value of 
the commodity, were introduced for a period of five years.  
Ruberoid  
(HS code- 6807 10 1000 Republic of Belarus On 12 July 2002, by Decision No. AD-47/2002/52- 62 of the Interdepartmental Co mmission on International Trad e, 
final anti-dumping measures , in the form of an anti-dumping duty in the amount of 75% of the customs value of the 
commodity, were introduced for a period of five years.  
Electric lamps 
(HS code – 8539 22 90 10) Kyrgyz Republic  On 27 December 2002, by Decision No. AD-62/2002/52-65 of the Interdepartmental Commission on International 
Trade, final anti-dumping meas ures, in the form of an anti-dumping dut y in the amount of 38,31% of the customs 
value of the commodity, were introduced for a period of five years. 
Matches (HS code – 3605 00 00 00) Russian Federation 
Republic of Belarus On 12 September 2003, by Decision No. AD-81/2003/52-123 of  the Interdepartmental Commission on International 
Trade anti-dumping measures were taken in the form of an anti-dumping duty in the amount: 
for commodities originating from the Russian Federation:  
production of Private JSC "Plitsichprom" (Balabanovo) – 0%; 
other producers – 8.8%; 
for commodities originating from the Republic of Belarus: 
production of Private JSC "Pinskdrev" (Pinsk)- 31.8%; 
production of Public JSC "Borisovdrev" (Borisov) – 68.7%; 
other producers – 95.7%. 
The term of anti-dumping measures  expires in five years.    
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 180 Commodity that is subject to the Anti-
dumping Investigation Country of Origin of the 
Commodity Results of Investigation and Measures Taken 
ONGOING ANTI-DUMPING INVESTIGATIONS 
Fiber sheets 
(HS code – 4411 19 00 00) Poland On 20 August 2003, by Decision No.  AD-76/2003/52- 122 of the Interdepartmental Commission on International 
Trade, preliminary anti-dumping measur es were introduced in the form of an anti-dumping duty in the amount of 
20.31% of the customs value of the commodity. The term of preliminary anti-dumping measures expires in one 
hundred and twenty days. 
Sewer pipes of cast-iron 
(HS code – 7303 00 90 00) Russian Federation Investigation instituted by Decision No.AD-74/2003/52-126 of 6 May 2003. 
Investigation is going on. 
Citric acid 
(HS code – 2918 14 00 00) People’s Republic of China On 10 October 2003, by Decision No. AD-82/2003/52-125 of th e Interdepartmental Commission on Interna tional 
Trade, preliminary anti-dumping measur es were introduced in the form of an anti-dumping duty in the amount of 
130% of the customs value of the commodity. The term of preliminary anti-dumping measures expires in one 
hundred and twenty days.. 
  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 181Table 14:  Safeguard measures taken by Ukraine  
Investigation started Investigation 
completed Measures taken Duration of measure 
Country Commodity - 
subject of 
investigation Date and number 
of decision Date of publication 
of decision Date and number 
of decision Date of publication 
of decision Size of annual safeguard quota  
COMPLETED SAFEGUARD INVESTIGATIONS 
Russian Federation, 
Slovak Republic, 
Kingdom of Belgium, 
Ireland, Poland, 
Germany and 
Kingdom of Spain Syringes with 
or without 
needles of 
plastic 
materials Decision No.SP-
13/2001/52-61 
dated 
1 December 2001 18 January 2001 Decision No.SP-
17/2001/52-44 
dated 8 June 2001 21 June 2001 893464.3 kg From 21 June 2001 
to 21 June 2005 
Russian Federation Baki ng soda Decision No.SP-
24/2001/52-46 
dated 
7 November 2001 14 November2001  Decision No.SP-
44/2002/52-46 
dated 5 July 2002 10 July 2002 2,500 tons From 10 July 2002 
to 10 July 2006 
Russian Federation Portland 
cement Decision No.SP-
25/2001/52-48 
dated 
13 December 2001 19 December 2001 Decision No.SP-
49/2002/52-48 
dated 
7 October 2002 10 October 2002 157,500 tons From 10 October 2002 
to 10 October 2006 
Russian Federation New cars Decision No.SP-
28/2002/52-49 
dated 
8 January 2002 11 January 2002 Decision No.SP-
54/2002/52-49 
dated 
6 December 2002 12 December 2002 20,826 units From 
12 December 2002 
to 12 December 2006 
Irrespective of country of origin Biscuit 
products  Decision No.SP-
59/2002/52-54 
dated 
6 December 2002 11 December 2002 Decision No.SP-
85/2003/52-99 30 December 2003 Safeguard measures were 
introduced in the form of a duty 
in the amount of 18.3% of the 
customs value of the commodity but not less than 
€0.3 per kilo (for products with 
value not exceeding US$ 1.5 
per kilo) From 
30 December 2003 
to 30 December 2007  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 182 Investigation started Investigation 
completed Measures taken Duration of measure 
Country Commodity - 
subject of 
investigation Date and number 
of decision Date of publication 
of decision Date and number 
of decision Date of publication 
of decision Size of annual safeguard quota  
ONGOING SAFEGUARD INVESTIGATIONS 
Irrespective of country 
of origin Abrasive 
instrument Decision No.SP – 
95/2004/52 of 
25 March 2004 8 April 2004  
Irrespective of country 
of origin Permanganic 
commodity 
oil  Decision No.SP – 
96/2004/52 of 
25 March 2004 8 April 2004  
Irrespective of country 
of origin Ingots of 
grey and 
super solid 
cast iron for 
the 
production of 
hydraulic 
transmission 
GST-90 Decision No.SP – 
97/2004/52 of 
25 March 2004 8 April 2004  
  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 183 
 
 
 Table 16:  Minimum indicative prices applied to exports (January 2005)  
 "-":   measure not applied to product indicated 
  "+": measure applie d 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   
Р–0.50% BT*** 627   
Р–0.60% BT*** 622   
if supplied to the EU, CIF ****     
С>0.5% €660   
C<0.5% €775   8 
C<0.05% €835   
9 Carbamide  180 - + 
10 Ammonia 230 - + WT/ACC/SPEC/UKR/5/Rev.2 
Page 184  
 
 No. Products Price 
(US$/MT, FOB Ukrainian ports) Export 
duty Registration of 
export contract 
 for the second half of January, 2005, 
FOB/DAF) 170   
Live cattle*****   + + 
weight up to 350 kg/head  1,250-1,350   11 
weight over 350 kg/head  1,200-1,300   
Live rams and sheep*****   + + 
weight up to 30 kg/head  1,050-1,200   12 
weight over 30 kg/head  1,000-1,100   
Cattle skins wet-salted and otherwise 
preserved, non-circumscribed, automatic 
takeoff (**) *****   + + 
1st class  1,550-1,650   
2nd class 1,450-1,550   
3rd class  1,315-1,400   
4th class  1,200-1,300   13 
Weight up to 10 kg, 1st class  2,450-2,850   
Sheep skins, wet-salted (US$/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/SPEC/UKR/5/Rev.2
 Page 185 
Table 17: Quantitative export restrictions in Ukraine  
Table 17(a): Export prohibitions  
Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description / 
WTO Justification or Date of 
Elimination 
7404.00 7503.00 
7602.00 
7802.0000 
7902.0000 
8002.0000 Waste and scrap of non-ferrous metals n. a.  Law on Scrap Metal No. 619-XIV dated 5 
May 1999 Prohibition of export. 
GATT Article XX (g)  
Prohibition is valid till 1 January 
2010 
 
Table 17(b): Quantitative export restrictions (precious metals)  
Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description / 
WTO Justification or Date 
of Elimination 
2530 90 95 00  Amber 
 Ministry of Economy and European Integration 
Prior Approval: Ministry of Finance Resolution of the Cabinet of Ministers 
No. 1996 of 24 December 2003 On the List 
of Goods, Export and Import of Which is 
Subject to Licensing, and which Fall under 
the Quota Regime in 2004 GATT Article XX (c) 
2616  Precious metal ores and conc entrates: "" "" GATT Article XX (c) 
 
2843  Colloidal precious metals; inorganic or organic 
compounds of precious metals, whether or not 
chemically defined; amalga ms of precious metals: "" "" GATT Article XX (c) 
 
7102  Diamonds, whether or not worked, but not 
mounted or set:6 "" "" GATT Article XX (c) 
 
7103  Precious stones (other than diamonds) and semi-
precious stones, whether or not worked or graded 
but not strung, mounted or set; ungraded precious 
stones (other than diamonds) and semi-precious 
stones, temporarily strung for convenience of transport: "" "" GATT Article XX (c) 
                                                      
6 Diamonds that have a symmetric or artisti cally defined form of a polyhedron with qualitatively polished edges shall be conside red as such.  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 186 Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description / 
WTO Justification or Date 
of Elimination 
 
7106  Silver (including silver plated with gold or 
platinum), unwrought or in semi manufactured
forms, or in powder form: "" "" GATT Article XX (c) 
 
7108  Gold (including gold plated with platinum), 
unwrought or in semi-manufactured
forms, or in powder form: "" "" GATT Article XX (c) 
 
7110  Platinum, unwrought or in semi-manufactured 
forms, or in powder form: "" "" GATT Article XX (c) 
 
7112  Base metals, silver or gol d, clad with platinum, 
not further worked than
semi-manufactured "" "" GATT Article XX (c) 
 
Table 17(c): Quantitative export controls (certain steel commodities)  
Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7208 4010 00 
7208 51, 7208 52  
7208 53 10 00  
7208 53 90 00 
7208 90  
7210 70 39 00  
7210 70 90 00  
7210 90 38 00  
7210 90 90 00  
7211 13 00 00  
7211 14, 7211 90 
7212 40 91 00 
7212 40 93 00 
7212 40 98 00 
7212 50 51 00 
7212 50 58 00 
7212 50 99 00 Specific types of flat-rolled products 
of carbon steel, hot-rolled, not clad, 
electrolytically or metallic coated, not 
in coils, of a thickness of 150mm 
 "" "" This measure only applies to implement an 
Agreement with the USA on halting anti-
dumping dated 24 October 1997. 
  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 187Table 17(d): Quantitative Export Controls on Goods (certain  textiles) destined to the United States of America  
Category Product Description Entity Responsible for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
435 Outer clothing for women and girls  Ministry of Economy and European Integration Resolution of the Cabinet of 
Ministers of Ukraine No. 1996 of 
24 December 2003 On the List 
of Goods, Export and Import of 
Which is Subject to Licensing, 
and Which Fall under the Quota 
Regime in 2004 To administer quota applied by US on 
Ukrainian textiles  in accordance with 
Agreement with the USA 
442 Skirts for women and girls  "" "" "" 
444 Suits for women and girls  "" "" "" 
448 Trousers, breeches and shorts for 
women and girls  "" "" "" 
 
Table 17(e): Quantitative export controls  on goods (certain steel products) d estined to European Union countries  
Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7208 10 00 00  
7208 25 00 00  
7208 26 00 00  
7208 27 00 00  
7208 36 00 00  
7208 37 10 00  
7208 37 90 00  7208 38 10 00  
7208 38 90 00  
7208 39 10 00  
7208 39 90 00  
7211 14 10 00  
7211 19 20 00  
7219 11 00 00  
7219 12 10 00  
7219 12 90 00  
7219 13 10 00  
7219 13 90 00  
7219 14 10 00  
7219 14 90 00  
7225 20 20 00  
7225 30 00 00  Flat-rolled products in coils Ministry of Economy an d European Integration Resolution of the Cabinet of 
Ministers of Ukraine No. 1996 of 
24 December 2003 On the List 
of Goods, Export and Import of 
Which is Subject to Licensing, 
and Which Fall under the Quota 
Regime in 2004 To administer quota applied  in accordance 
with Agreement between European 
Community and Ukraine on Trade of Certain 
Steel products dated 17 June 2003 and 
Council Decision of 15 December 2003 on 
Trade of Certain Steel products  
(2003/893/EC)  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 188 Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7208 40 10 00  
7208 51 10 00  
7208 51 30 00  
7208 51 50 00  
7208 51 91 00  
7208 51 99 00  
7208 52 10 00  
7208 52 91 00  
7208 52 99 00 7208 53 10 00  
7211 13 00 00  
7225 40 20 00  
7225 40 50 00  
7225 99 10 00  Flat-rolled products not in coils "" "" "" 
7208 40 90 00  
7208 53 90 00  
7208 54 10 00  
7208 54 90 00  
7208 90 10 00  
7209 15 00 00  
7209 16 10 00  
7209 16 90 00  
7209 17 10 00  
7209 17 90 00  
7209 18 10 00  
7209 18 91 00  
7209 18 99 00  
7209 25 00 00  
7209 26 10 00  
7209 26 90 00  
7209 27 10 00  7209 27 90 00  
7209 28 10 00  
7209 28 90 00  
7209 90 10 00  
7210 11 10 00  
7210 12 11 00  
7210 12 19 00  
7210 20 10 00  
7210 30 10 00  
7210 41 10 00  
7210 49 10 00  
7210 50 10 00  
7210 61 10 00  
7210 69 10 00  Flat-rolled products 
 "" "" ""  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 189Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7210 70 31 00  
7210 70 39 00  
7210 90 31 00  
7210 90 33 00  
7210 90 38 00  
7211 14 90 00  
7211 19 90 00 
7211 23 10 00  
7211 23 51 00  7211 29 20 00  
7211 90 11 00  
7212 10 10 00  
7212 10 91 00  
7212 20 11 00  
7212 30 11 00  
7212 40 10 00  
7212 40 91 00  
7212 50 31 00  
7212 50 51 00  
7212 50 51 00  
7212 50 51 00  
7212 50 51 00  
7212 50 51 00  
7212 50 51 00  
7212 60 11 00  
7212 60 91 00  
7219 21 10 00  
7219 21 90 00  
7219 22 10 00  
7219 22 90 00  
7219 23 00 00  
7219 24 00 00  
7219 31 00 00  
7219 32 10 00  
7219 32 90 00  
7219 33 10 00  
7219 33 90 00  
7219 34 10 00  
7219 34 90 00  
7219 35 10 00  
7219 35 90 00  
7225 40 80 00   
 Other flat-rolled products "" "" "" 
7207 19 31 00  7207 20 71 00  Semi-finished products and files "" "" ""  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 190 Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7216 31 11 00  
7216 31 19 00  
7216 31 91 00  
7216 31 99 00 
7216 32 11 00  
7216 32 19 00  
7216 32 91 00  
7216 32 99 00  
7216 33 10 00  7216 33 90 00  
7213 10 00 00  
7213 20 00 00  
7213 91 10 00  
7213 91 20 00  
7213 91 41 00  
7213 91 49 00  
7213 91 70 00  
7213 91 90 00  
7213 99 10 00  
7213 99 90 00  
7221 00 10 00  
7221 00 90 00  
7227 10 00 00  
7227 20 00 00  
7227 90 10 00  
7227 90 50 00  
7227 90 95 00  Bars and rods, hot-rolled, in irregularly 
wound coils 
 "" "" "" 
7207 19 11 00  
7207 19 14 00  
7207 19 16 00  
7207 20 51 00  
7207 20 55 00  
7207 20 57 00  
7214 20 00 00  
7214 30 00 00  
7214 91 10 00  
7214 91 90 00  
7214 99 10 00  
7214 99 31 00  
7214 99 39 00  
7214 99 50 00  
7214 99 61 00  
7214 99 69 00  
7214 99 80 00  
7214 99 90 00  Semi-finished products, bars and rods, 
files, hollow bars and rods, Sheet piling 
 "" "" ""  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 191Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7214 99 90 00 
7214 99 90 00  
7215 90 10 00  
7216 10 00 00  
7216 21 00 00  
7216 22 00 00  
7216 40 10 00  
7216 40 90 00  
7216 50 10 00  7216 50 91 00  
7216 50 99 00  
7216 99 10 00  
7218 99 20 00  
7222 11 11 00  
7222 11 19 00  
7222 11 21 00  
7222 11 29 00  
7222 11 91 00  
7222 11 99 00  
7222 19 10 00  
7222 19 90 00  
7222 30 10 00  
7222 40 10 00  
7222 40 30 00  
7224 90 31 00  
7224 90 39 00  
7224 90 39 00  
7228 10 10 00  
7228 10 30 00  
7228 20 11 00  
7228 20 19 00  
7228 20 30 00  
7228 20 30 00  
7228 30 20 00  
7228 30 41 00  
7228 30 49 00  
7228 30 61 00  
7228 30 69 00  
7228 30 70 00  
7228 30 89 00  
7228 60 10 00  
7228 60 10 00  
7228 70 10 00  
7228 70 31 00 7228 80 10 00   
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 192 Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7228 80 90 00  
7301 10 00 00  
 
Table 17(f): Quantitative export controls on goods (cer tain steel) destined to the Russian Federation  
Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
7210 49 10 00  
7210 49 90 00  7210 61 10 00  
7210 61 90 00  
7212 30 11 00  
7212 30 19 00  
7212 30 90 00  
7225 92 10 00  
7225 92 90 00  
7226 94 20 00  
7226 94 80 00  Flat-rolled products plaited or coated 
with zinc Ministry of Economy and European Integration Resolution of the Cabinet of 
Ministers of Ukraine No. 1996 of 24 December 2003 On the List 
of Goods, Export and Import of 
Which is Subject to Licensing, 
and Which Fall under the Quota 
Regime in 2004 In accordance with an agreement between 
the Ministry of Economy and European Integration of Ukraine and the Ministry of 
Economic Development and Trade of the 
Russian Federation 
  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 193Table 18: Goods subject to export licensing in Ukraine  
Table 18(a): Goods subject to export licensing, upon prior approval   
Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
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: The Ministry of Education 
and Science   Resolution of the Cabinet of 
Ministers of Ukraine No. 1996 of 24 
December 2003 On the List of 
Goods, Export and Import of Which 
is Subject to Licensing, and Which 
Fall under the Quota Regime in 2004  GATT Article XX (d) 
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: 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 
 "" GATT Article XX (b) 
8415, 8418, 
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: Ministry of 
Environmental Protection   "" GATT Article XX (b)  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 194 Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
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: Ministry of 
Environmental Protection   
 "" GATT Article XX (b) 
2601  Iron ores and concentrates, including roasted 
iron pyrites: Issuance of Licence: Ministry of Economy 
and European Integration 
Prior Approval: Ministry of Industrial 
Policy of Ukraine "" GATT Article XX(g) 
 - Iron ores and concentrates, other than roasted 
iron pyrites: "" "" "" 
2601 11 00 00  -- Non-agglomerated "" "" "" 
2601 12 00 00  -- agglomerated "" "" "" 
2601 20 00 00  - Roasted iron pyrites "" "" "" 
7401  - Copper mattes; cement copper (precipitated 
copper): "" "" "" 
7402 00 00 00  Unrefined copper; copper anodes for 
electrolytic refining. "" "" "" 
7403  Refined copper and copper alloys, unwrought: "" "" "" 
7405 00 00 00  Master alloys of copper "" "" "" 
7406  Copper powders and flakes: "" "" ""  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 195Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
7407  Copper bars, rods and profiles "" "" "" 
7415  Nails, tacks, drawing pi ns, staples (other than 
those of heading ¹ 83.05) and similar articles, 
of copper or of iron or steel with heads of 
copper; screws, bolts, nuts, screw hooks, 
rivets, cotters, cotter-pins, washers (including 
spring washers) and similar wares of copper "" "" "" 
7416 00 00 00  Copper springs "" "" "" 
7419  articles of copper: "" "" "" 
7601 Unwrought aluminium: "" "" "" 
7603  Aluminium powders and flakes: "" "" "" 
7604  Aluminium bars, rods and profiles: "" "" "" 
7610  Aluminium structures (excluding prefabricated 
buildings of heading ¹ 94.06) and parts of 
structures (for example, bridges and bridge-
sections, towers, lattice masts, roofs, roofing 
frameworks, doors and windows and their 
frames and thresholds for doors, balustrade, 
poles and columns); aluminium sheets, bars, files, tubes etc, intended for application while 
construction building "" "" "" 
7616  Articles of aluminium "" "" "" 
7801  Unwrought lead: "" "" "" 
8454 20 00 00  - Ingot moulds and ladles "" "" "" 
8454 90 00  Parts of converters, ladles and Ingot moulds, 
and casting machines,  
used in metallurgy or in metal foundries  "" ""  
8455 90 00 00  Parts of metal-rolling mills and rolls therefore: "" "" "" 
8474 90 90  Parts of machinery for  sorting, screening, 
separating, washing, crushing, grinding, 
mixing or kneading earth, stone, ores or other 
mineral  substances, in solid (including 
powder or paste) form; machinery for 
agglomerating, shaping or moulding solid 
mineral fuels, ceramic pastes, non-solidified 
cement, gypsum or other mineral substances in 
the form of powder or paste; shaping 
machinery for the production of sand 
moulding forms  "" "" "" 
8480  - Moulding boxes for metal foundry; mould 
bases; moulding patter ns; moulds for metal 
(other than ingot moul ds), metal carbides, 
glass, mineral materials, rubber or plastics: "" "" ""  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 196 Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
 Petroleum Oils or raw oil products obtained 
from bituminous minerals  Issuance of Licence: Ministry of Economy 
and European Integration 
Prior Approval: Ministry of Fuel and 
Energy of Ukraine "" GATT Article XX(g) 
2709 00 90 00  other "" "" "" 
 - Petroleum oils and oils obtained from 
bituminous minerals (other than crude) and 
preparations not elsewhere specified or included, containing by weight 70 % or more 
of petroleum oils or of oils obtained from 
bituminous minerals, these oils being the basic 
component parts: 
- Light oils and preparations: 
for other purposes: 
other: 
---- Motor spirit: 
----- Other, with lead content 
------ Not exceeding 0.013g per litre 
------- With an octane number (RON) of less 
than 95 
-------- With an octane number to 80 inclusive "" "" "" 
2710 00 27 11  --------- containing not less than 5% of high-
octane oxygen-containing agents "" "" "" 
2710 00 27 19 other "" "" "" 
 -------- with an octane number to 93 inclusive "" "" "" 
2710 00 27 31 --------- containing not less than 5% of high-
octane oxygen-containing agents "" "" "" 
2710 00 27 39 other "" "" "" 
2710 00 27 90  other "" "" "" 
 ------- with an octane number of 98 or more "" "" "" 
 ------- with an octane number of 95 or more, 
but not more than 98 "" "" "" 
2710 00 29 01 -------- Containing not less than 5% of high-
octane oxygen-containing agents "" "" "" 
2710 00 29 09 other "" "" "" 
2710 00 32 01 -------- Containing not less than 5% of high-
octane oxygen-containing agents "" "" "" 
2710 00 32 09 other "" "" "" 
 ------ exceeding 0,013 g per litre "" "" "" 
 ------- with an octane number of less than 98 "" "" "" 
 ------- with an octane number to 80 inclusive "" "" "" 
2710 00 34 11 --------- containing not less than 5% of high-
octane oxygen-containing agents "" "" ""  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 197Tariff Code Product Description Entity Responsible for Applying the 
Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
2710 00 34 19 other "" "" "" 
 ------- with an octane number to 93 inclusive "" "" "" 
2710 00 34 31 ---------- containing not less than 5% of high-
octane oxygen-containing agents "" "" "" 
2710 00 34 39 ---------  other "" "" "" 
2710 00 34 90 ---------  other "" "" "" 
 ------- with an octane number of 98 or more "" "" "" 
2710 00 36 01 --------- containing not less than 5% of high-
octane oxygen-containing agents "" "" "" 
2710 00 36 09 other "" "" "" 
 -  Heavy oils: "" "" "" 
 -- gas-oils "" "" "" 
2710 00 61 00 --- For undergoing a specific process "" "" "" 
2710 00 65 00 --- For undergoing chemical transformation by 
a process other than thos e specified in respect 
of subheading 2710006100 "" "" "" 
2710 00 69 00 --- For other purposes "" "" "" 
 - - Fuel oils: "" "" "" 
2710 00 71 00 - - - For undergoing a specific process  "" "" "" 
2710 00 72 00  - - - For undergoing chemical transformation 
by a process other than those specified 
in respect of subheading 2710 00 71 "" "" "" 
 - - - For other purposes: "" "" "" 
2710 00 74 00  - - - - With a sulphur content  
not exceeding 1 % by weight "" "" "" 
2710 00 76 00  - - - - With a sulphur content exceeding 1 % by 
weight but not exceeding 2 % by 
weight "" "" "" 
2710 00 77 00  - - - - With a sulphur content exceeding 2 % by 
weight but not exceeding 2,8 % by 
weight "" "" "" 
2710 00 78 00  - - - - With a sulphur content  
exceeding 2,8 % by weight "" "" "" 
Note:  Export licensing for 7601 10 00 00 is required only when produced using scrap-metal.   
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 198 Table 18(b): Exports licensing (certain textil es) destined to European Union countries  
Category Product Description Entity Responsible for 
Applying the Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
2 Fabrics woven of cotton, except for gauze, double fabrics, for tulle and 
other reticulated fabrics  Ministry of Economy and 
European Integration Resolution of the Cabinet of 
Ministers of Ukraine No. 1996 of 24 
December 2003 On the List of 
Goods, Export and Import of Which 
is Subject to Licensing, and Which 
Fall under the Quota Regime in 2004 To fulfil provision of Ukraine-EU 
Agreement on trade in textile 
products.  This agreement commits 
Ukraine to issue export licenses 
with the purpose to implement the 
double checking system. 
2(a) including other except for non-blenched or blenched  "" "" "" 
4 Shirts, sport shirts, light jumpers a nd thin pullovers with a soft or high 
collar (other than of wool or of th in animal hairs), underwear or similar 
wares, knitted wear of machine or hand knitting  "" "" "" 
5 Sweaters, pullovers, woman's jackets, vests, cardigans, night jackets, 
jerseys, except for jackets and blazers, warm jackets, light jackets, short 
jackets and similar wares, knitted wear of machine or hand knitting "" "" "" 
6 Fabric breeches, shorts, except for swimming trunks and trousers 
including slacks for men and boys "" "" "" 
 trousers and slacks of wool, cotton or chemical fibres for women and 
girls;  "" "" "" 
 lower parts of sport suits with lini ng, except for indicated in 16 and 29 
categories, of wool or  chemical fibres  "" "" "" 
7 Blouses, shirts and slim line shirts for women and girls, both knitted of 
machine or hand knitting, and non-knitted, of wool, cotton or chemical 
fibres;  "" "" "" 
8 Shirts for men or boys, except fo r knitted wear of machine or hand 
knitting of wool, cotton or chemical fibres;  "" "" "" 
12 Panty hoses, stockings, leggings, socks, footsteps and the like knitted 
wear of machine or hand knitting, except for wares for infants, including 
stockings for sick with varicose vein s, except for products of 70 category "" "" "" 
13 Underpants and pants for men and bo ys, pants and briefs for women and 
girls, knitted of machine or hand knitting of wool, cotton and chemical 
threads   "" "" "" 
15 Coats, rain coats, mantelets for wo men and girls made of fabric; jackets 
and blazers  made of wool, cotton and chemical textile fibres (except for 
parkas of 21 category) "" "" "" 
26/27 Dresses for women and girls made of wool, cotton or chemical fibres. 
Skirts for women and girls,  including skirts - trousers "" "" "" 
29 Suits and sets for women and girls, except for knitted wares of machine 
and hand knitting of wool, cotton or  chemical fibres, except for skiing 
suits; sport suits for women and girls w ith lining, with an outside galloon 
of the same fabric, of cotton or chemical fibres;  "" "" ""  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 199Category Product Description Entity Responsible for 
Applying the Measure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of 
Elimination 
83 Coats, jackets, blazers and other clothes, including skiing suits, knitted 
wares of machine or hand knitting, exce pt for 4, 5, 7, 13, 24, 26, 27, 28, 
68, 69, 72, 73, 74, 75 categories clothes "" "" "" 
117 Fibres of flax or of fibres of frame  "" "" "" 
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 200 Table 18(c): Goods subject to export approvals  
Tariff Code Product Description Entity Responsible  for Applying the Meas ure Legislative Basis Measure Description and Purpose 
WTO Justification or Date of Elimination 
9303-9306 arms, ammunition, defence military 
equipment and special components for production thereof Cabinet of Ministers of Ukraine after 
agreement with respective committees of the Verkhovna Rada of Ukraine (Parliament) Law on Foreign Economic 
Activities No. 959-XII dated 16 April 1991 GATT Article XXI (b) 
3602 explosive substances "" "" GATT Article XXI (b) 
2844 50 
8401 nuclear materials (i ncluding materials 
in the form of heat-radiating 
assemblages), technologies, equipment, 
mounts, special non-nuclear materials 
and connected thereto services, sources 
of ionizing radiation "" "" GATT Article XXI (b) 
 other types of products, technologies 
and services, which now are used to 
develop arms and military equipment 
or present state secret of Ukraine that is 
determined by the laws of Ukraine "" "" GATT Article XXI (b) 
2616 
2843 precious metals and alloys  "" "" GATT Article XX (c) 
 
7018 
7103-7105 precious stones "" "" GATT Article XX (c)  
 
 narcotic and psychotropic means "" "" GATT Article XX (b) 
9701-9706 masterpieces of arts and antique items 
from museum funds of Ukraine "" "" GATT Article XX (f)        WT/ACC/SPEC/UKR/5/Rev.2 
 Page 201 
 
 
 Table 19: Support measures in the automotive sector  
Laws: Old law No. 535/97 of 
19 September 19977    Law on the State Budget 2004             New Law No. 1624 of 18 March 2004 
Duration: Until 1 January 2008   Whole year 2004  Until 31 December 2008 
Coverage Cars/buses/trucks/spare parts 
Investments before 1 January 2004 
(minimum investment levels)  Cars/motorcycles/spare parts       
 
VAT exemption for imported inputs  suspended, except for enterprises that had 
approved investment programs and 
investments done before 1 January 2004 No privileges 
Zero rate of VAT for cars 
produced   suspended, except for enterprises that had 
approved investment programs and 
investments done before 1 January 2004 No privileges 
Import duties: components 
exempt Import duties: components exempt Import duties: components exempt8 
Land tax suspended, except for enterprises that had 
approved investment programs and 
investments done before 1 January 2004 No privileges 
Corporate income exempted from 
taxation Suspended, except for enterprises that had 
approved investment programs and 
investments done before 1 January 2004 Corporate profit exempted from 
taxation Privileges 
Exemption from excise duties 
Law:  
On Excise Tax9 
Duration: until 1 January 2007 
Coverage:  enterprises producing 
more than 1,000 cars or 
motorcycles/year  Exemption from  excise duties 
Law: On Excise Tax10 
Duration: until 1 January 2007 Coverage: enterprises producing more 
than 1,000 cars or motorcycles/year 
TRIMS: No local content requirement (was 
eliminated by Law of 
November 2001)  Local content requirement  
                                                      
7 For details see page 17 of WT/ACC/UKR/116. 
8 For details see the relevant paragraph of the section on "Industrial polic y, including subsidies" . 
9 Law "On Excise Tax and Import Duty Rates on Ce rtain Motor Vehicles" No. 216/96-VR of 24 May 1996 
10 Law "On Excise Tax and Import Duty Rates on Ce rtain Motor Vehicles" No. 216/96-VR of 24 May 1996  
  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 202 Table 20:  Recommended certification schemes (models) in Ukraine  
Products to be 
certified Plant 
(Manufacturing) 
Inspection Plant 
(Manufacturing) 
Attestation Certification 
(Assessment) of 
the Quality 
System Tests for Certification Pur poses Technical Supervision Documents that are issued by the 
Product Certification Body 
Conducted Not conducted Not conducted Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body  Conducted in the manner specified 
by the certification body, and 
includes inspections of 
manufacturing and check tests of 
product samples  Conformity certificate with a term 
of up to 2 years, which is 
determined by a licensing 
agreement  
Not conducted conducted Not conducted Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body Conducted in the manner specified 
by the certification body, and 
includes inspections of 
manufacturing and check tests of 
product samples Conformity certificate with a term 
of up to 3 years, which is 
determined by a licensing 
agreement, taking into account the 
term of the manufacturing attestation  Products that are 
serially 
manufactured 
Not conducted Not conducted Conducted by 
the authority for 
system quality 
certification  Conducted in the manner specified 
by the certification body Conducted in the manner specified 
by the authority for system quality 
certification Conformity certificate with a term 
of up to 3 years, which is 
determined by a licensing 
agreement, taking into account the 
term of a certificate for the quality 
system  
Single product  Not conducted Not conducted Not conducted Conducted on each Article  No t conducted Conformity certificate for e ach 
Article  
Shipment of products 
(articles) Not conducted Not conducted Not conducte d Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body Not conducted Conformity certificate for a 
shipment of products (articles) with 
indication of the amount of the 
certified shipment 
Products that are 
serially 
manufactured Not conducted Not conducted Not conducte d Conducted on product samples that 
are taken in the manner and 
quantities prescribed by the 
certification body Conducted through tests of product 
samples with the periodicity, in the 
manner prescribed by the 
certification body. If necessary, an 
inspection of manufacturing is 
conducted Conformity certificate with a term 
that is set by a licensing agreement 
with a term of up to 1 year  WT/ACC/SPEC/UKR/5/Rev.2 
 Page 203 
 
 
 Table 21: Commercial activity of SJSC "Khlib Ukrainy"  
The Company sells grain to private companies on the domestic market. 
The structure of the clients who are sold gr ain by the Company on the external market:  
100 per cent privately owned enterprises, including: - "Alfred C. Topfer International Ltd" - 47.1 per cent; 
- "Mark Man Grains" - 18.3 per cent; 
- "Agrotechnologia" - 10.6 per cent; 
- "Luis Dreyfus Negos S.A." - 9.6 per cent; 
- "Yumekos" - 7.6 per cent; 
- "Nidera" - 2.0 per cent; 
- "Glencorn" - 1.1 per cent; and 
- Others - 3.7 per cent 
 
Main indicators of production and commercia l activities of the SJSC "Khlib Ukrainy" 
 
for nine months of 2004  
No. Name of the indicator 9 months of 2004 9 months of 2003 
1 Production, in thousand tons,  
Including 
- flour 
- groats 
- mixed fodder  
 
225 
16 
57  
 
201 
16 
65 
2 Total amount of received revenues, in million UAH, 
including net revenues (proceeds) from sales of products without VAT, in million UAH  646 
537 236 
199 
3 Prime costs of sold products, in million UAH 503 179 
4 Gross profits, in million UAH 34 19 
5 Payments transferred into the budget, in million UAH 29 31 
6 Average number of employed persons, men  9,878 11,091  
 WT/ACC/SPEC/UKR/5/Rev.2 
Page 204 Table 22(a):  Main privileges granted to investors in Special (Free) Economic Zones (SEZ/FEZ)  
Name of FEZ/Form of 
Assistance Special Customs Zone 
Regime Exemption from income tax Exemption from taxation of 
investments Exemption from Import Duty 
and VAT Exemption from land tax 
Azov + rate – 20% + - + (for duration of site 
preparation) 
Donetsk + rate – 20% + - + (for duration of site 
preparation) 
Zakarpattia + rate – 20% - - - 
Yavoriv, including Krakovets Autoport + (only for Krakovets 
Autoport) 
 + (5 years), next -50% 
 - 
 + (5 years) 
 + (3 years), next -50% of 
existing rate 
Slavutych  - 
 + (3 years), from Year 4 to 
year 6  -50% of existing rate + + (5 years) + (3 years), Year 4 to Year 6 
-50% of existing rate 
Kurotopolis Truskavets  - 
 + (3 years), from Year 4 to 
Year 6 -50% of existing rate + 
 + 
 + (for duration of site 
preparation), next 10 years - 
50% of existing rate 
Porto-Franco 
 + 
 +(3 years), from Year 4 to 
Year 6 - 50% of existing rate + 
 - 
 - 
 
Reni + rate – 20% + - - 
Port Krym + rate – 20% + - + (5 years) 
Interport Kovel + rate – 20% - - + (5 years) 
Mykolaiv 
 + (ship-building dock 
territory only) + (3 years), from Year 4 to 
Year 6 - 50% of the existing 
rate, from Year 4 to 10 years 
-reinvestment + 
 + (5 years) 
 + (5 years) 
 
Note: "+" means that the benefit is available throughout the period of investment.   
 "-" means that the benefit is not available. 
 "+ (two years) year three to year five – 50 per cent of ex isting rate" means that the benefit is fully available for the first  two years of investment.  During the following 
three years, the tax is levied at fifty per cent of its normal rate.  The normal tax rate applies thereafter.   
 "rate – 20 per cent" means that the applied tax rate is 20 per cent.  
  WT/ACC/SPEC/UKR/5/Rev.2
 Page 205Table 22(b):  Main privileges granted to investors on Te rritories with a Special Regime of Investment Activity  
Name of territory Exemption from income tax Exemption from taxation 
of investments Exemption from payment 
of import duty and VAT Exemption from payment 
for land 
Donetsk Oblast + (3 years) Year 4 to Year 6  - 50% of existing rate + + (5 years) - 
Luhansk Oblast + (3 years) Year 4 to Year 6 - 50% of existing rate + + (5 years) + (5 years) 
Zakarpatska Oblast + (2 years) Year 3 to Year 5 - 50% of existing rate + + (5 years) - 
Autonomous Republic of Crimea + (3 years)  Year 4 to Year 6  - 50% of existing rate + + (5 years) + (5 years) 
City of Shostka, Sumy Oblast + (3 years) Year 4 to Ye ar 6 - 50% of existing rate + + (5 years) + (5 years) 
Zhytomyr Oblast + (3 years) Year 4 to Year 6  - 50% of existing rate + + (5 years) + (5 years) 
Kharkiv City + (3 years) Year 4 to Year 6  - 50% of existing rate + + (5 years) + (5 years) 
Chernihiv Oblast + (3 years) Year 4 to Year 6 - 50% of existing rate + + (5 years) + (5 years) 
Volyn Oblast + (3 years) Year 4 to Year 6 - 50% of existing rate + + (5 years) - 
 
__________