. /.   WORLD TRADE  
ORGANIZATION  WT/REG121/7 
26 August 2009 
 
 (09-4031) 
Committee on Regional Trade Agreements Original:  English 
  
 
FREE TRADE AGREEMENT BETWEEN GEORGIA AND UKRAINE 
(GOODS) 
 
Questions and Replies
 
 
 
 The following communication, dated 19 August 2009,  is being circulated at the request of the 
delegations of Georgia and Ukraine.   This document reproduces the questions addressed to the Parties and the responses submitted. 
 
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Questions from the Delegation of Australia
 
 1. In 2004 Ukraine passed a resolution "On tempor ary exclusion of sugar and sugar syrup 
from free trade regime with Georgia and Russia".  Why has sugar been excluded?  When will 
the temporary exclusion expire? 
 The sugar has been excluded in order to support preservation and development of domestic 
production of beet sugar.  This ex clusion is temporary, until conclusion of joint decision with Georgia 
and signing of relevant Protocol. 
 
2. Ukraine applied tariff-rate quotas for the first time in 1999, on two tariff lines 
corresponding to raw cane sugar (HS 1701.11).  Th e in-quota duty rate was set at 2 % in 2009, 
the out-of-tariff quota at 50%.  What is the volume of imports that will qualify for the in-quota duty? 
 In 2009 the volume of TRQ is 263900,0 tons. Please see Ukrainian notification 
G/AG/N/UKR/1 of 26.02.09 for further details. 
 
3. We also seek clarification of the term  ‘sugar products’ and its coverage? 
 As regards “sugar products” in the para 20 it means sugar (UKTZED 1701) and sugar syrups 
(UKTZED 1702 19 00 00, 1702 30 59 00, 1702 30 99 00 (except starch syrup), 1702 40 90 00, 1702 
60 95 00, 1702 90 71 00, 1702 90 79 00, 1702 90 99 90, 2106 90 20 00, 2106 90 59 00 and 2106 90 
98 90) which are excluded by Ukraine from FTA with Georgia. Among them only sugar (1701.11) is subjected to TRQ as presented in G/AG/N/UKR/1.   UKTZED is the Ukrainian Foreign Economic Activity Commodity Classification, based on 
Harmonized System 2002. 
   WT/REG121/7 
Page 2  
 
  Questions from the Delegation of Brazil
 
 4. Are the preferences granted for goods prod uced with materials imported with 
suspension or elimination of duties and taxes? 
 As far as we understood the question, we would like to note the following: 
 
 In case of operations with give-and-take materials the payment of duties and taxes is suspended contingent on the exportation of fina l goods (if they are exported, nothing would be 
charged).  If those materials are already exempted  from duties on their importation, than the payment 
of taxes is suspended contingent on the exportation of final goods.  As regards restoring stocks of 
inputs to goods to be exported, Ukrainian law on operations with give-and- take materials does not 
provide for such restoring.  
5. Are there any plans to implement digital certificates of origin, with digital signature? 
 Current Rules of Establishing the Country of Origin  for Goods, approved by the Resolution of 
the Council of the Heads of the Governments of the Community of Independent State, as of 
September 24, 1993, revised and amended  in November 30, 2000  does not provide for issuing of 
electronic certificates.  
Questions from the Delegation of Chinese Taipei
 
 
Countervailing measures  
 6. As regards countervailing measures, paragraph 33 in page 15 of the 
Factual Presentation interprets Item 8 of Article 3 of this Agreement “restriction of import of 
goods, when the internal price on such a produc t is lower than the world price as a result of 
implementation of governmental assistance programmes” as a countervailing measure. We 
would appreciate further clarification about the following: 
(a) Are these import restrictions allowa ble under the Agreement on Subsidies and 
Countervailing Measures? 
(b) How can the use of “when the internal price on such a product is lower than the 
world price as a result of implem entation of governmental assistance 
programmes” as a prerequisite for counter vailing measures be consistent with 
Articles 11.2 and 15.2 of the Agreement on Subsidies and Countervailing Measures? 
 Ukraine would like to note that in 1995 when the bilateral Agreement was concluded, the 
Parties of this Agreement were not under the co mmitment of the WTO Agreement on Subsidies and 
Countervailing Measures.  In December 1998 Ukrain e adopted national legislation concerning 
countervailing measures based on the principles and provisions of the SCM Agreement (notified by 
Ukraine in May 2008, G/SCM/N/1/UKR/1).  This legislation has not any provisions concerning “restriction of import of goods, when the internal pri ce of such a product is lower than the world price 
as a result of implementation of governmental assist ance programmes”.  Thus Ukraine does not apply 
mentioned above provisions and is  not in position to comment them. 
 
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