RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/125 
7 January 2005 
 (05-0072) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Additional Questions and Replies  
 
 
 The following submission, dated 20 December 2004, is being circulated at the request of the Delegation of Ukraine.   
_______________ 
  WT/ACC/UKR/125 
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 TABLE OF CONTENTS 
 
ECONOMIC POLICIES.............................................................................................................. .........1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................2  
- Investment Regime.............................................................................................................. ......4  
- State Ownership and Privatization .........................................................................................5  
- Pricing Policies ............................................................................................................... ...........9  
- Competition Policy............................................................................................................. .....10  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................10  
POLICIES AFFECTING TRADE IN GOODS ................................................................................13  
- Trading Rights ................................................................................................................. .......13  
A. IMPORT REGULATION......................................................................................................16  
- Ordinary cust oms duties ........................................................................................................ 16 
- Other duties and charges....................................................................................................... .17 
- Tariff rate quotas, tariff exemptions.....................................................................................17  
- Fees and charges for services rendered.................................................................................18  
- Application of internal taxes on imports...............................................................................21  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............26  
- Customs valuation.............................................................................................................. .....31  
- Rules of origin ................................................................................................................ .........34  
- Other customs formalities ...................................................................................................... 39 
- Preshipment inspection ......................................................................................................... .39 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................40  
B. EXPORT REGULATIONS ...................................................................................................41  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes.......................................................................................................................... ................41  
- Export rest rictions ............................................................................................................ ......42  
- Export subsidies ............................................................................................................... .......44  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................45  
- Industrial policy, including subsidies....................................................................................45  
- Technical barriers to trade .................................................................................................... 48 
- Sanitary and phytosanitary measures...................................................................................51  
- Trade-related investment measures ......................................................................................53  
- State-trading entities......................................................................................................... ......54  
- Free zones, special economic areas........................................................................................55  WT/ACC/UKR/125 
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 Government procurement......................................................................................................57  
- Trade in ci vil aircraft........................................................................................................ ......58  
- Transit........................................................................................................................ ..............58  
TRADE-RELATED INTELLECTUAL  PROPERTY REGIME....................................................59  
POLICIES AFFECTING TRADE IN SERVICES...........................................................................62  
Transparency................................................................................................................... .....................63  
Trade Agreements............................................................................................................... .................66   WT/ACC/UKR/125 
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 ECONOMIC POLICIES 
- Monetary and Fiscal Policy  Question 1 Paragraph 11:  Does the list of taxes and fees cov er all the taxes and fees at the state and local 
level?  We would appreciate additional informat ion on their level and possible changes planned. 
Answer: 
 
The list below is the complete list of all taxes and fees at the state level. Please note that in 
comparance with the list from the paragraph 11 WT/ACC/UKR/5/Rev.1 two fees were excluded, particularly a fee to the Fund to mitigate the con sequences of the Chernobyl disaster and for social 
protection of the population and a fee for the State Innovation Fund. 
It should be noted that the taxes and fees (mandato ry payments) listed therein correspond to the list 
indicated in Articles 14 and 15 of the Law of Ukraine "On the System of Taxation".  Taxes and fees (mandatory payments), levying of which is not contemplated by this  Law, shall not be paid.  At 
present, the national taxes are levied at the following tax rates pursuant to effective law: 
- Value added tax (20 per cent);  
- Excisable duty (it is imposed on certain goods sp ecified by law as excisable, and is calculated 
at ad valorem  rates based on sale volumes, at specific rates based on the unit of the sold 
product, and simultaneously at ad valorem  rates based on sale volumes and in specific rates 
based on the unit of the sold product); 
- Corporate profit tax, including dividends paid into the budget by State non-corporatized, 
state-owned or communal enterprises (25 per cent);  
- Personal income tax (as from 1 January 2004 until 31 December 2006  - 13 per cent, and as 
from 1 January 2007 – 15 per cent);  
- Customs duty;  
- State duty (it is collected at rates in sums in the part relating to the citizen non-taxed amount 
and on an ad valorem  basis in respect to the applicable  amount specified in a document (the 
amount of a claim, the value of the property being disposed etc.); 
- Immovable property (real estate) tax (so far it is not legislatively regulated);  
- Payment for land (land tax) (a payment for land is collected in the form of a land tax or a 
lease payment which is determined depending on  the quality and location of a land plot based 
on a Cadastre evaluation);  
- "Rental" payments (rental payments for oil, na tural gas and gas condensate are determined as 
based on volumes of the extracted oil, natu ral gas and gas condensate and on mining and 
geological conditions for their extraction and sale prices); 
- Tax paid by owners of motor vehicles and ot her self-propelled machines and mechanisms (it 
is paid at specific annual rates for 100 cubi c centimetres of the engine cylinder volume, 
1 kilowatt of engine power);  
- Craft tax (it is set in the amount of 10 per cent of the declared value of goods to be sold within 
three calendar days, but not less than the amount of one minimum salary;  
- Fee for geological survey works performed at the cost of the State Budget (it is charged 
separately for each type of mineral resources or a group of directly similar mineral resources);  
- Fee for the special use of natural resources ( it is set separately for each type of natural 
resources, depending on their prevalence, qua lity, reproducibility, availability and other 
factors);  
- Fee for pollution of the environment (it is set on the basis of actual amounts of emissions, 
limits on the discharge of polluting substances in to the environment and placement of waste);  
- Fee for mandatory State pension insurance (it is set as depending on the type of the taxpayer); WT/ACC/UKR/125 
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 - Payment for a trading licence for certain types of entrepreneurial activities (it is set in specific 
amounts as depending on the type of business activity); 
- Agricultural tax (The rate of the fixed agricu ltural tax levied on one hectare of agricultural 
lands is set at ad ad valorem  as based on their monetary evaluation carried as at 1 July 1995);  
- Fee for development of viticulture, horticulture  and hop-growing (the rate of the fee is 
1 per cent);  
- Singe fee that is collected at points of entry through the State border of Ukraine (it is set 
depending on the type, capacity (or total weight) of a motor vehicle loaded with cargo);  
- Fee for the use of the radio frequency resource of Ukraine (it is set by the Cabinet of 
Ministers of Ukraine, depending on the type of radio communications and diapasons of radio 
frequencies); 
- Fees payable to the Fund for the Guaranteeing of Deposits of Physical Persons (the initial fee 
is 1 per cent of a bank's registered charter capital,  a regular fee is paid by a participating bank 
(temporary participant) twice a year in the amount of 0.25 per cent of the total amount of deposits, including interest accrued on the deposits , a special fee payable to the Fund is used 
in the event that current revenues of the Fund ar e insufficient for the Fund to fully perform its 
obligations regarding the servicing and repayment of attracted credits that are directed to 
reimburse funds to bank depositors);  
- Fee in the event of a special-purpose surcharg e to the existing tariff for electric power and 
heat energy (it is set by the National Commission for Regulation of Electricity and may not exceed the amount as is approved by the Law of  Ukraine on the State Budget for a given 
year); and 
- Artistic touring fee (the rate of the artistic tour ing fee is 3 per cent of the amount of revenues 
obtained from sales of tickets for an artistic touring event).   
Pursuant to the Law of Ukraine "On the Value Adde d Tax", it is contemplated that the rate of the 
value added tax will be reduced to 15 per cen t (as from 1 January 2005 until 1 January 2006 – 
17 per cent).  
Local taxes and fees (mandatory payments), collec tion mechanisms and procedures for their payment 
are prescribed by village, township, city Radas pursuant to the list of mentioned in the paragraph 11, 
and within limits of maximum amounts for, rat es as are laid down by the laws of Ukraine. 
- Foreign Exchange and Payments 
Question 2 
Paragraph 15:  We understand that foreign ex change surrender requirements of 50 per cent 
remain in place.  This restriction would not seem  consistent with the statement earlier in the 
paragraph.  What are Ukraine's plans for reducing and eventually eliminating this 
"temporary" restriction? 
Answer:
 
In accordance with Resolution of the National Ba nk of Ukraine No. 349 of 4 September 1998 "On 
Enforcing Compulsory Sale of Receipts in Forei gn Exchange in Favour of Residents" (hereinafter 
referred to as the Resolution), a requirement app lies in Ukraine where-under residents (legal entities 
and natural persons acting as entrep reneurs) are obliged to sell, on a mandatory basis and through the 
mediation of authorized banks (authorized financial institutions, 50 per cent of their foreign exchange 
revenues that meet the criteria of the first group of  the classificatory of foreign exchange and banking 
metals.  The Resolution also outlines the list of entiti es required to perform the mandatory sale of their 
revenues, as well as the types of funds not subject to mandatory sale.  WT/ACC/UKR/125 
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 However, given that there are preferences in the form of exemptions from mandatory sale of foreign 
exchange revenues as set by Ukrainian laws (in pa rticular, the laws on special economic zones, and 
the Resolution of the Board of Directors of the National Bank of Ukraine of 4 September 1998 No. 349 "On Enforcing Compulsory Sale of Receipts in Foreign Exchange in Favor of Residents", it 
is only from 20 to 25 per cent of foreign exchange revenues that remains subject to mandatory sale. 
The low actual amount of the mandatory sale testifi es to the fact that this requirement is not 
encumbering for enterprises and organizati ons receiving foreign exchange revenues. 
The few remaining regulations concerning the use, purchase and sale of foreign exchange referred to 
in the question help prevent foreign exchange linked to current account transactions from being 
misused for speculative purposes.  The objective is to prevent circum vention of Ukraine's remaining 
controls on capital movement that are consistent  with Article XXX of the IMF.  The measures 
monitoring foreign exchange are still necessary as ev idenced by the recent sharp fluctuations of the 
hryvnia on the exchange market.  The Ukrainian moneta ry authorities are, for the time being, not in a 
position to draw up a plan for the elimination of these few remaining measures. 
Question 3 
We seek a commitment for the progressive elimination of this restriction. Answer:
 
The Ukrainian monetary authorities are, for the time being, not in a position to draw up a plan for the 
elimination of these few remaining measures. 
Question 4 
Paragraph 17:  Could Ukraine expand on the ration ale of its current practice in restricting the 
use and purchase of foreign exchange, as well as present a plan for the elimination of the 
restrictions.  
Answer:  
The rules laying down procedures for the use and pur chase of foreign exchange are not restrictions 
per se and are prescribed in order to effectuate c ontrol over the outflow of capital, to accomplish goals 
of monetary and credit policies and macro-economic  equilibrium, and to prevent the laundering of 
dirty money. 
All said rules operate within limits of the require ments as are laid down in Article VIII of the IMF 
Charter. 
Foreign exchange needed for the conduct by [Ukrainian] residents of capital operations is purchased 
on Ukraine's inter-bank currency market only to meet  specific obligations of the residents to non-
residents, including a provision contemplating that  residents acting as guarantors (residents acting as 
sureties) may purchase foreign exchange to liquidate  obligations to a non-resident creditor for the 
benefit of a resident debtor. 
It is not permitted to purchase foreign exchange in  order for residents acting as guarantors (residents 
acting as sureties) to meet obligations in forei gn exchange of a non-resident debtor owed to a non-
resident creditor.  However, a resident may meet such obligations using its own foreign exchange 
funds.  The National Bank of Ukraine was forced to  enact such a rule, taking into account a need to 
prevent the outflow of capital outside of Ukraine, which outflow was carried out through the use by 
residents of shady schemes, whereby guarantees, sureti es were issued to non-resident creditors for the 
benefit of non-resident debtors. WT/ACC/UKR/125 
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 The elimination by Ukraine of such a restriction is possible on condition that the outflow of capital 
from Ukraine is overcome. 
In order to prevent the outflow of capital when residents return foreign investments to foreign 
investors, the National Bank of Ukraine has simp lified for foreign investors procedures for the 
purchase of foreign exchange in the event that fore ign investors return their investments and profits, 
proceeds, other funds obtained as a result of investme nt activities in Ukraine, and has enacted a rule 
whereby such purchase is carried out  from an account of a non-resident investor, i.e., by the foreign 
investor itself. 
- Investment Regime 
Question 5 
Paragraph 20: This paragraph should be amende d to state that the new Law on Automobiles 
does contain local content requirements. 
Answer:
 
We can propose such text: "Local content requirement  had been eliminated in the Law No. 535/97 in 
2001.  However, as described in paragraph 1 52 in WT/ACC/SPEC/UKR/5/Rev.1 the new law 
No. 1624-VI does contain local content requirement." 
Question 6 
Paragraph 22 has been amended with a reference to  Article 71 of the Law on the Sate Budget of 
Ukraine for 2004 which prohibits payments to th e budget in non-monetary  form, including the 
use of promissory notes, for both domestic a nd foreign owned enterprises.  We welcome this 
clarification; however, we have again received cont radictory information on this point, both in 
terms of other  legislation (notably Article 11.5 of the Law on VAT of 2003) and in terms of 
implementation.  We would ask for further clarification, including whether any specific regulations apply in the area of agricultural pr oducts.  We would also like a cross-reference to 
this issue in the section of the draft Work ing Party Report dealing with VAT issues. 
Generally, we seek a clear commitment in th e draft Working Party Report that the regime 
regulating the use of promissory notes will be  the same for both domestic and foreign 
companies. 
Answer: 
 
Pursuant to Article 11.5 of the Law "On the Valu e Added Tax", at the time of importation (sending-
in) of goods into the customs territory of Ukraine, taxpayers may, at their discretion, issue to customs 
control authorities a promissory note for the amount of the tax obligation.  
In addition, pursuant to the first sentence containe d in paragraph 11 of the said Article 11.5, its effect 
does not extend to operations involving the impor tation (sending-in) of excisable goods and goods 
falling within Commodity Groups 1 – 24 of the Ukrainian Classification of Goods in Foreign 
Economic Activities (UCG FEA). In addition, this m easure may not apply to goods that are imported 
(sent) by an enterprise with foreign investments de pending on the form in which, and time when, such 
investments were made. 
In this regard it should be noted that the Law of Ukraine "On Amendments to Certain Laws of 
Ukraine on Issues of Taxation with respect to Grain Crops", dated 23 October 2003, under 
No. 1240- ІV, which excluded from paragraph 11 in Artic le 11.5 of the Law of Ukraine "On the Value  WT/ACC/UKR/125 
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 Added Tax" a rule restricting the applicability of  this Article 11.5 to goods imported (sent) by 
enterprises with foreign investments, irrespective of the form in which, and time when, such 
investments were made, lost its effect as from 1 July  2004 in connection with the lapse of the term of 
effect thereof. 
That is, as from 1 July 2004, enterprises with fo reign investments lost their right to issue tax 
promissory notes for the amount of the VAT at the time of importation of goods into the customs 
territory of Ukraine. 
The relevant draft law "On the Value Added Tax" w as prepared and if it is adopted, the issue relating 
to the use by enterprises with fo reign investments of VAT promissory notes will be legislatively 
regulated in non-discriminatory manner. 
As regards the use of promissory notes from the date of accession, Ukraine will apply a 
non-discriminatory regime in compliance with Article III of the GATT 1994. 
Question 7 
Paragraph 25: According to the information provided, a wide range of activities could be 
prohibited.  For the sake of clarity, it would be desirable to draw up a list describing all 
prohibited investment activities. 
Answer:  
The Law of Ukraine "On Investment Activities" prohi bits investing into objects, whose creation and 
use do not comply with sanitary and hygienic, radia tion, environmental, architectural and other norms 
prescribed by Ukrainian law, and which violates legisl atively protected rights and interests of citizens, 
legal entities and the State, rather th an prohibits investment activities. 
In all WTO members investments that conflict with the national legislations applicable in various 
domains such as health, environment, safety etc. ar e forbidden.  As far as can be ascertained, no WTO 
member has an official exhaustive list describing a ll prohibited investment activities.  Whatever that 
may be, Ukraine for its part is not in a position to draw up such a list on all forbidden investment but 
it will readily respond to queries about permission for defined investments in specific areas. 
- State Ownership and Privatization Question 8 What areas of the Ukraine's economy still cont ain significant state-owned enterprises?   
Answer:
 
Today state enterprises act almost in all spheres of economy.  For the first half of the 2004 the 
consolidated index of the specific share of public sector in the economy of Ukraine was 22.9 per cent. 
Particularly in the spheres of economic activity such as: 
- agriculture, hunting and forestry – 69.9 per cent; 
- transportation and communication – 55.8 per cent; 
- industry – 26.4 per cent; 
- health protection and social assistance – 21.6 per cent; 
- education – 14.7 per cent; and 
- building – 14.0 per cent.    WT/ACC/UKR/125 
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 Question 9 
Please list, and describe the commercial activities of, the major state-owned enterprises not yet 
privatized, particularly those engaged in international trade or in domestic trade that competes with imports or any operating in the agricultura l sector.  Do any of these firms trade on behalf 
of the state?  Indicate whether privatization is  an option for these firms, and if so, on what 
terms and what are the near term prospects? 
Answer:
 
By types of economic activities, the ma jor state-owned enterprises belong to: 
the aircraft industry in the amount of seven en terprises, the largest of which are as follows: 
- Kyiv State-Owned Plant "AVIANT"; and 
- Antonov Design Bureau, which specializes in  the manufacturing of An-148 and An-70 
aircraft. 
The Kharkiv State-Owned Aircraft Manufacturing Enterprise specializes in the serial manufacturing 
of An-140 aircraft.  Over ten months of this year , 3 An-10 aircraft and 1 An-124-100 aircraft have 
been sold. 
Manufacturing and certification testing the first test model of an An-148 aircraft is a prospect for 
development of the aircraft building industry. 
The following 8 enterprises belong to the radi o electronics and radio technical industry: 
- the State-owned enterprise "KHEMS", which is  a factory that manufactures large electric 
machines, with power capacity of up to 20 megawatt, for metallurgic, chemical and electric machinery, alternating-current electric engines,  including explosion-protected engines; low-
watt apparatus (kit electric-drive devices for en terprises of the metallurgic and chemical 
industries and the fuel and energy sector); contactors, switches and power transformers.   
Others include the plant "Generator, the State- Owned Joint Stock Holding Company "TOPAS", the 
State-Owned Scientific and Production Enterprise  "Elektronmash", the State-Owned Enterprise 
"Radioprylad", the Production Association "Monolit", the State-Owned Enterprise 
"Elektronvazhmash", and the State-Owned En terprise "Scientific and Production Company 
"Elektrovozobuduvannia". 
The shipbuilding industry includes the two largest enterprises: - the State-Owned Enterprise "NVKG "Zoria" – "Mashprojekt", which is a specialized 
enterprise that manufactures steam and gas ship turbines; and 
- the State-Owned Enterprise "Ship-Building Plan t named after 61 Komunars", which is an 
enterprise that specializes in the building and repairs of military ships of the "cruiser" and 
"frigate" classes. 
The chemical industry includes five en terprises, the largest of which is: 
- the Odessa State Port Plant (its privatization is planned to commence in 2005). 
Its main areas of business is production and sales of  chemical products (ammonia, carbamide, natrium 
sulfate, carbon dioxide and others), as well as a cceptance, storage and re-loading for exportation of  WT/ACC/UKR/125 
 Page 7 
 
 
 ammonia, carbamide, nitric fertilizers and methan ol from other enterprises in Ukraine and CIS 
countries. 
The metallurgic sector includes five enterprises,  the largest of which are as follows:   
- the State-Owned Scientific and Production Combine and the State Enterprise "Titanium-
Magnesium Combine". 
The material requested is complex and involves concep ts and categories that have not been used so far 
in organizing statistical information, as well as some  information that is not normally in the public 
domain.  Ukraine continues to work on this, and will inform Members on the extent to which it can 
respond to the detail requested.  
Question 10 
What is the relative position of state-owned and state controlled firms in GDP and trade, in 
certain sectors and overall?  E.g., paragraph 27  states that privatized firms accounted for 
54 per cent of Ukraine's industrial output in Oc tober 2002.  Does that mean that 46 per cent of 
industrial output was accounted for by state-owned or state controlled firms in that period?  What is the percentage now?  Are the percentages similar in agriculture? 
Answer: 
 
The material requested is complex and involves concep ts and categories that have not been used so far 
in organizing statistical information, as well as some  information that is not normally in the public 
domain.  Ukraine continues to work on this, and will inform Members on the extent to which it can 
respond to the detail requested.  
Question 11 
What portion of the firms that are considered "privatized" have actually now under private 
ownership, rather than transformed into "collective property" and under the authority and control of regional or local governments?  For e xample, we understand that some of the large 
metallurgical plants in Ukraine have been tran sformed into collective property, not actually 
under private ownership.  Please include the current status and information on the relative 
position of these firms in GDP and trade in their respective sectors?  
Answer:
 
The material requested is complex and involves concep ts and categories that have not been used so far 
in organizing statistical information, as well as some  information that is not normally in the public 
domain. Ukraine continues to work on this, and wi ll inform Members on the extent to which it can 
respond to the detail requested.  
Question 12 Paragraphs 26 and 31:  If the Law "On State Prop erty Privatization" is the legal authority for 
the current and ongoing privatization process in Ukraine, it should be stated so up front.  This, and/or any other relevant legislation should be noted in paragraph 26.  E.g., if, per paragraph 27,  the "Supreme Rada was considering a dra ft State Privatization Programme for 2004-2006," 
were there previous programmes? WT/ACC/UKR/125 
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 Answer:
 
The state property privatization is regulated by the following legislation of Ukraine: - Law of Ukraine "On State Property Privatization"; 
- Law of Ukraine "On State Program of Privatization"; 
- Commercial Code of Ukraine; 
- Civil Code of Ukraine; 
- Law of Ukraine "On Specifics of Privatization in Agricultural Sector"; 
- Law of Ukraine "On the Assessment of Property,  Property Rights and Professional Activity in 
Ukraine"; 
- Law of Ukraine "On the Specifics of Priv atization of the Objects of Unfinished 
Construction"; and 
- Law of Ukraine "On the Rent of State and Municipal Property" and other. 
The privatization process is to a big extent regulated by the State Programs of Privatization (SPP).  
Six Programs were run during the time of the State Property Fund's existence.  The first Program of Privatization was approved by the Resolution of the Verkhovna Rada No. 2545-XII of 7 July 1992. 
The next Program was approved by the Resolution of Verkhovna Rada of Ukraine No. 3876-XII of 
26 January 1994.  In 1997, the Program of Priv atization was approved by the Law of Ukraine 
No. 294/97 of 3 June 1997.  The following Program of Privatization for 1998 was approved by the 
Law of Ukraine No. 124/98 of 12 February 1998.  The Program of Privatization for 1999 was put into action by the Order of the President of Ukraine "On State Program of Privatization" No. 209 of 24 February 1999.  The most recent Program of Privatization was adopted for a period of three years 
and approved by the Law of Ukraine No.1733-III of 18 May 2000. As of today, the Draft State 
Program of Privatization for 2004-2006 is bei ng considered by Verkhovna Rada of Ukraine. 
Question 13 
While we very much appreciate the information already provided, we continue to seek a more 
comprehensive description and a better appreciatio n of the position of state-ownership in 
Ukraine's economy, particularly as it relates to tr ade.   Such additional description will help us 
to conclude discussions in this area. 
We look forward to the additional information promised for paragraph 30. Paragraph 30: Could information be provided on  the proportion of privatized enterprises 
among all the enterprises included in the State Register, as well as information on the importance of state-owned enterprises in Ukraine's foreign trade? 
Paragraph 31 should be elaborated drawing on the information provided by Ukraine in 
response to Question 12 of WT/ACC/UKR/118.  The initial information on agricultural entities "not subject to privatization" should be expande d to name them and to indicate in substantive 
terms what sort of enterprises are included and th eir role in Ukraine's agricultural regime, e.g., 
"grain handling" per the response to Question 12? 
WT/ACC/UKR/118: Will the list of state-owned prop erty not subject to privatization be revised 
and reduced accordingly? 
Answer:
 
Yes, the list of state-owned property not subject  to privatization will be revised and reduced.  WT/ACC/UKR/125 
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 The draft law of Ukraine on the amendments to th e Law of Ukraine "On the List of State Property 
Assets not Subject to Privatization", prepared by the Cabinet of Ministers of Ukraine, is under consideration in the Supreme Rada of Ukraine a nd suggests 274 objects to be excluded from the list. 
Question 14 
Paragraph 28: Noting that the information in Ta ble 1(b) concerns the early part of year 2003 
(April), this information should be completed. 
Answer:
 
Following is the list of Joint-stock enterprises  with State-owned and private capital (per 
1 November 2004): 
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 
 
- Pricing Policies Question 15 We note that the new law on "On State Support of  Agriculture in Ukraine" contains provision 
for minimum prices that will be applied to imported  goods.  While the intent of the legislation is 
to establish agricultural price support, we note th e implications for Article III:9 of the GATT if 
these prices are applied to imports. 
Paragraph 40:  If minimum import prices are be ing applied to imports, we suggest expanding 
the draft commitment to include a pledge to  eliminate this measure prior to accession. 
Answer:
 
Ukraine does not apply minimum import prices for agricultural products and will not apply them in 
future. 
Question 16 
Paragraph 38-39:  On 31 March 2004, the government established a commission on pricing 
issues in the metal industry.  Does this co mmission still exist? What is its mandate? WT/ACC/UKR/125 
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 Answer:
 
The commission on pricing issues in the metal industry ceased its existence on 1 September 2004. 
Question 17 
For the sake of clarity, it would be useful to see a timetable indicating when inconsistent 
practices related to the price and tariff contro l system will be eliminated. We are also 
particularly interested in the tariff control for basic telecommunications. 
Answer:  
Measures mentioned in paragraphs 38 and 39 had be en in effect until 1 September 2004 and are not 
applied at the current moment. 
Tariffs on telecommunication services are set by operators and providers of telecommunications 
services independently, except for those tariffs for nation-wide services that are subject to State 
regulation. 
State regulation in the telecommunications sectors is carried out by the National Commission for 
Regulation of Communications of Ukraine, est ablished pursuant to the Law of Ukraine "On 
Telecommunications", which Commission will disch arge its powers as from the 1 January 2005. 
- Competition Policy Question 18 Paragraphs 42-43: Are all existing natural monopolies listed here?  Does Ukraine have a 
timetable for their dissolution, for example those on centralized supply of heating and 
communications? 
Answer:
 
We have listed the most important ones.  Howeve r, pursuant to the Law of Ukraine "On Natural 
Monopolies", Article 5, such function of the natu ral monopolies as rendering of specialized services 
by transport terminals, ports and airports, coul d be added to the list of natural monopolies. 
For today, "The State Program for Reforming a nd Development of Utilities'  Economy in 2005-2010" 
was approved by the Law of Ukraine No. 1869-IV of 24 June 2004.  This Program envisages: 
Introduction of the efficient system of state regulation of the natural monopolies' activity in the area of 
water supply and heating: 
Further dissolution of monopolized of utilities depart ments, creation of competitive environment in 
the markets of utility services. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 19 
Paragraph 48:   We would like to see a commitment dealing with the issue of subcentral 
authority, its relationship to WTO obligations undertaken by the central government, and uniform application of the WTO in Ukraine, similar to those found in other WTO accession 
Working Party reports.    WT/ACC/UKR/125 
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 We propose the following language: 
xx.        The representative of Ukraine conf irmed 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, shall be applied uniformly throughout  its customs territory and other territories 
under its control, including in regions engaging in border trade or fron tier traffic, special 
economic zones, and other area s 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 mann er, central authorities would act to enforce 
WTO provisions without requiring affected part ies to petition through the courts.  The 
Working Party took note of these commitments. 
Answer:
 
Ukraine agrees with the proposed draft commitment language.  The commitment paragraph would be 
included to the draft Working Party report in [...] accordingly. 
Question 20 
Paragraphs 49 and 52:  Paragraph 49 refers to "administrative courts" that address economic 
issues.  What relationship, if any, do these cour ts have to the commercial courts described in 
paragraph 52, and what is their relevance to WTO-related issues? 
Answer:  
Pursuant to the Law of Ukraine "On the Judi ciary", dated 7 February 2002, under No. 3018- ІІІ, 
commercial and administrative courts fall within the category of specialized courts.  Commercial 
courts adjudicate cases that arise out of commercial relations between business entities.  
Administrative courts adjudicate administrative jurisdiction cases involving relations in the area of 
public administration and local self-government. 
The competence of administrative courts includes the adjudication of cases involving violations of 
procedures for payments in the area of trade and vi olations of laws in the area of government export 
controls, specifically: 
- conduct of negotiations in connection with th e conclusion of foreign economic agreements 
(contracts); 
- failure to provide or to provide in a timely manner reports and require d documents on results 
of conducted negotiations to a specially author ized executive agency for government export 
controls; and 
- willful destruction of documents  relating to the execution or performance of foreign economic 
agreements (contracts). 
Administrative courts are separated by their comp etence from, and are not related to, commercial 
courts. 
Question 21 
Please clarify the assurance in paragraph 52 as to  whether the commercial courts would address 
all appeals from administrative rulings in the areas of trade in goods, services, and intellectual 
property. WT/ACC/UKR/125 
Page 12  
 
 Answer:
 
Commercial courts adjudicate cases that arise out of commercial relations between entities, which 
relations are concerned with trade in goods and ser vices and protection of inte llectual property rights.  
So, starting from March 2003 the specialized court chambers began to function at the Commercial 
Court of Ukraine and in the Commercial Courts of  Appeals. Cases related to the protection of 
intellectual property rights are considered there.  Similar specialized chambers or "collegiums" 
consisting of the commercial courts and commerc ial judges of the Autonomous Republic of the 
Crimea, oblasts and cities of Kyiv and Sevastopol have been created. 
The relevant specialization of judges in the local  commercial courts is la unched. Considering the 
specifics of the mentioned category of cases, the intr oduction of such specialization will lead to equal 
application of norms of the current legislation in the area of intellectual property. 
The created collegiums and chambers consider th e cases connected with disputes as in the area of 
industrial property, so in the area of copyright and related rights. But a significant restriction in activity of such collegiums is the fact that co mmercial courts, within which these collegiums are 
created, consider the cases related to disputable le gal relations arising between the businesses. For the 
current moment, all other IP-related cases are be ing considered by the non-specialized courts. 
Question 22 
Paragraph 54:  We note the commitment language on right of appeal.  We propose a 
commitment along these lines, but expanded as follows: 
xx.   The representative of Ukraine confirmed th at from the date of accession Ukraine's laws 
would provide for the right to appeal admini strative rulings on matters subject to WTO 
provisions to an independent tribunal in conf ormity with WTO obligations including, but not 
limited to, Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment 
Answer:
 
Ukraine takes note. 
Question 23 
Paragraph 54: Please include comm itment language related to th e uniform application of WTO 
provisions: 
"The representative of Ukraine confirmed that the provisions of the WTO Agreement should be 
applied uniformly throughout the Ukrainian cust oms territory, including in regions engaging in 
border trade or frontier traffic, special economi c zones, and other area s where special regimes 
for tariffs, taxes and regulations were established. 
He added that, when informed of a situation where WTO provisions were not being applied or 
were apllied in a non-uniform manner, central au thorities would act to enforce WTO provisions 
wtihout requiring affected parties to petition through the courts." 
Answer:  
Ukraine agrees with the proposed draft commitment language.  The commitment paragraph would be 
included to the draft Working Party report in [...] accordingly.  WT/ACC/UKR/125 
 Page 13 
 
 
 POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 24 Paragraph 56:  We regret that Ukraine does not envisage a gradual reduction of the number of 
goods and services-related activities subject to licensing?  
Answer:
 
Ukraine confirms that licensing of goods and servi ces is currently required to meet only legitimate 
objectives, typical of any other WTO Member count ry.  The currently applied licensing requirements 
for certain goods or services-related activities are ma intained to meet concerns in the field of 
protection of human, animal or plant life and health , the environment, public morals, national security, 
or for prudential regulation of the financial sector which is in compliance with WTO rules. 
Question 25 
We suggest that a general statement be incl uded indicating that all activities licenses for 
importing can be obtained within ten days. 
Paragraph 57:  Please specify within which time frame (how many days) is an activity licence 
issued. In order to improve the reading of this se ction, we suggest that, if the time necessary to 
deliver an activity licence is the same independent ly from the type of activity, it should be 
mentioned at the beginning of this section and only the exceptions for the specific goods should 
be mentioned in the relevant paragraphs. 
Answer:  
There are only four categories of goods for which activity licence is required in order to import: 
Product Description Time period for obtaining the licence 
Laser-readable discs; pol ycabonate for production 
of optical information st orage devices; equipment 
for laser-readable discs Within 10 working days 
Order of Ministry of Economy and European 
Integration of Ukraine from 8 August 2002 No. 244  
Holographic protection elements  Within 10 working days 
Methodical Recommendations of Security Service of 
Ukraine in licensing of hol ographic protection elements 
and Law "On Licensing of Certain Types of Economic Activity" No. 1775-III of 1 June 2000 
Narcotics, psychotropic substances and precursors  Within 9 working days 
Order of Ministry of Health from 16 February 2004 
No. 86 
Cryptosystems and mean s for crypto-graphic 
protection  Within 10 working days  
Law "On Licensing of Certain Types of Economic 
Activity" No. 1775-III of 1 June 2000 
 
Question 26 
Paragraph 58: We note that foreign enterprises are currently not allowed to import or export 
cognac spirits. Could you explain the justification for this measure, and its likely duration?  WT/ACC/UKR/125 
Page 14  
 
 Answer:
 
Please note that licences to import and export cognac spirits may be issued to the specialized cognac 
producing enterprises (residents) specifically approve d by the Cabinet of Ministers, which possess the 
required oak vessels for ripening of cognac alc ohol, the qualified experts and the own production 
facilities for production of cognac alcohol and cognac  
Please also see document WT/ACC/UKR/115 for details. 
Question 27 
Paragraph 58:  Please confirm that for the impo rtation of alcoholic beverages (not including 
ethyl alcohol, cognac and fruit spirits), an acti vity licence is necessary.  Please confirm that no 
additional import licenses are necessary for the importation of  these goods, after acquiring an 
activity licence.  
Answer:  
Ukraine confirms this information.  No  additional import licence is required. 
Question 28 
Would Ukraine clarify the reason for the annual fee of US$ 47,000 for the importation activity 
licence, much higher than that for other goods?  Are domestic producers and traders subject to 
similar fees? 
Answer:  
Alcoholic beverages and tobacco pr oducts are high-profitable products. 
The annual fee of US$ 47,000 for import licence for alcoholic beverages and tobacco products is the 
same as for domestic producers, traders and importers. 
For ethyl alcohol, cognac and fruit spirits, only state- owned, specialized domestic firms designated by 
the Council of Ministers are permitted in international trade. 
Please note that licences to import and export ethyl alcohol, cognac and fruit spirits may be issued 
only to the State-owned or "specialized enterprises"  (residents) specifically approved by the Cabinet 
of Ministers.  
Please also see document WT/ACC/UKR/115 for details. 
Question 29 
Paragraph 58:  this paragraph i ndicates the prescriptions requested to get an activity licence in 
the case of production and trade in alcohol.  As  it relates also to the production and trade in 
tobacco goods a description similar to the one for alcohol should be added for tobacco products. 
Answer:  
Paragraph 58 addresses the specifics connected with tr ade in tobacco products as well.  There are no 
other specifics as regards tobacco products.   WT/ACC/UKR/125 
 Page 15 
 
 
 Question 30 
We thank Ukraine for the additional information provided and the clear indication that for the 
vast majority of its trade, the right to  import and export is unrestricted.   
Paragraphs 60 and 63:  Please confirm that th ere is no activity licence necessary for the 
importation of pharmaceuticals or pest icides and other agro-chemicals.    
Answer:  
Ukraine confirms that no activity licence is required for the importation of pharmaceuticals, pesticides 
and other agro-chemicals. 
Question 31 
Paragraph 60 and answer to Question 36 in WT/ACC/UKR/118:  We appreciate the answer 
given to Question 36, which enumerates the different level of fees for the registration (re-
registration) of pharmaceuticals and indicates th at the same fee is levied for imported and 
domestic pharmaceuticals.  However we would ap preciate to get additional information on the 
rationale to levy much higher fees in the case of registration of medicines (€ 1,000) than in the 
case of medicines in bulk (€ 25).  We are of the view that high registration fees can act as a trade 
barrier. 
Answer:  
We believe that existing registration fees are not acting as a trade barrier. It is demonstrated by 
statistic: 
Pharmaceutical products 
In US$ (million) 2002 2003 2004 (6 month) 
import 427.89 596.83 296.08 
Domestic production 341.4 383.3 187.03 
 
The registration fees charged by Ukraine for pharmaceu ticals products to be allowed to be sold on the 
domestic market are on the whole much lower than t hose of at least several of the more advanced 
industrialized countries.  Finally, Ukraine's relative levels of registration fees as applied to different 
products do not show any protectionist bias whatsoev er that could be objected to in terms of the 
GATT.  
Question 32 
Paragraph 62:  Table 5(a) indicates that only  bodies approved by the Council of Ministers may 
import narcotics.  We understand that the list of  approved importers is very small.  Why are 
these firms not considered state trading enterprises?   
Answer:  
Ukraine would like to correct the entry of Eligibility in Table 5(a) with respect to the import of items 
3001-3006.  It should be replaced with the following:  
"According to the Law "On Turnover of Narcotic s, Psychotropic Substances, Their Analogs and 
Precursors" No. 60/95-VR of 15 February 1995 the ac tivity, connected with the turnover of narcotics, 
psychotropic substances (with exception of some ps ychotropic substances and the precursors defined WT/ACC/UKR/125 
Page 16  
 
 in this Law) is conducted by enterprises of the state and municipal form of property which have 
licenses for certain types of ac tivity such as cultivation, deve lopment, production, storage, 
distribution, transportation, sending, purchase, se lling, 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 fo r 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 pr ecursors is being issued by the Committee on 
Narcotics Control attached to the Ministry of H ealth Protection upon approval with the Security 
Service of Ukraine". 
A. IMPORT REGULATION - Ordinary customs duties Question 33 Paragraph 67:  Please indicate in this paragra ph Ukraine's intentions after accession to the 
WTO. 
Vis-à-vis  tariff treatment for WTO members currentl y subject to the "common" tariff regime. 
When can we expect a concordance for the co nversion of Ukraine's tariff commitments to 
HS2002? 
Answer:
 
In accordance with Part 1 of Article I of the General Agreement on Tariffs and Trade Ukraine will 
apply the privileged rate of customs duty to a ll goods originating in the WTO members after its 
accession to the WTO.  
The nomenclature in Ukraine's Customs Tariff refl ects the Ukrainian Commodity Nomenclature of 
Foreign Economic Activity, which is based on the Harmonized System 1996 and the Combined 
Nomenclature of the European Communities.  Uk raine plans to switch to the 2002 version of the 
Harmonized System after accession to the WTO.  At  the current moment, the law on amendment of 
the Law of Ukraine "On the Customs Tariff of Ukraine" is being drafted. 
Question 34 
Paragraph 67: This paragraph indicates that the common rate of import duty applied to goods 
originating in 81 countries, mostly developing  countries could be up to 2-10 times higher than 
the privileged rate (MFN).  We expect that Ukra ine will at the latest from the date of accession 
will grant full MFN treatment to all WTO Me mbers and thus will levy at the maximum the 
MFN rates on imported goods originating from all WTO Members. 
Language proposed as regards the application of MFN treatment:  The representative of 
Ukraine confirmed that Ukraine would ensure that its customs duties and charges of any kind imposed on or in connection with importation would be in full conformity with WTO obligations under Article I GATT.   WT/ACC/UKR/125 
 Page 17 
 
 
 Answer:  
From the date of accession privileged rates (MFN) of the Customs tariff of Ukraine will be applied to 
all goods which are originated from the member st ates of the WTO in accordance with the Article I 
part 1 of the General Agreement on Tariffs and Trade. 
- Other duties and charges 
Question 35 
Paragraphs 69-70:  The additional fee of € 0.01 kg, which is discriminatorily levied on imported 
petroleum products, is scheduled to be abolishe d by 1 January 2005.  As this fee has already 
been prolonged several times in the past, we would seek confirmation that the abolition will indeed take place. 
Answer: 
 
The Draft Law of Ukraine "On the State Budget of Ukraine for 2005" envisages the following 
amendments to the Customs Code of Ukraine, Se ction XXI "Final Provisions":  "1. The Customs 
Code of Ukraine comes into effect on 1 January 2004, except for a part of Article 71, which comes into effect on 1 January 2006".  In this respect, the fee of € 0.01 per kg shall be  applied to imported oil 
products till 1 January 2006, as set forth by the Resolu tion of the Cabinet of Ministers of Ukraine "On 
Amendment of the Resolution of the Cabinet of Mi nisters of Ukraine "On Customs Duty Rates" of 
27 January 1997". 
A one year extention on the application of the pe troleum fee is not related to the fact that WTO 
accession didn't take place in 2004, as was expected at the end of 2003, at time when the Budget 2004 
including that tax was adopted. The fee will be abolished as soon as the budge tary situation permits, 
but in any case - no later than accession to the WTO. 
- Tariff rate quotas, tariff exemptions 
Question 36 We understand that Ukraine applied a TRQ to im ports of cognac in 2003.  Could this be 
confirmed, the relevant law cited, and an explanation given for this action?    
Answer:
 
No TRQ to import of cognac was applied in 2003.   For the current moment, no TRQ to import of 
cognac is applied.  
Question 37 
If Ukraine intends to continue to use TRQs a fter accession, some sort of commitment will be 
necessary to address their application, as it is  questionable whether the current system for raw 
sugar is WTO consistent, and the use of auctions is highly problematic.  
Answer:  
Upon accession Ukraine plans to change current syst em of TRQ allocation for raw sugar as it was 
described in the document WT/ACC/UKR/110/Add.1.  Ukraine will not use auctions for allocation 
for raw sugar upon accession in the WTO. WT/ACC/UKR/125 
Page 18  
 
 Question 38 
Paragraphs 71 to 75 are not consistent with the latest goods offer 
(WT/ACC/SPEC/UKR/4/Rev.2), where this measure did not appear.  
Besides this issue, we wish to recall that the au ctioning method in TRQs is inconsistent with 
Article 4.2. of the Agreement on Agriculture Arti cle 3.2. of the Agreement on Import Licensing 
Procedures and with provisions in following Articles of GATT 1994: II, III  and VIII. 
Answer: 
 
Upon accession Ukraine plans to change current syst em of TRQ allocation for raw sugar as it was 
described in the document WT/ACC/UKR/110/Add.1.  Ukraine will not use auctions for allocation 
for raw sugar upon accession in the WTO. 
- Fees and charges for services rendered Question 39 Is the unified fee being collected?  How is it operating?   
Answer:
 
Please see the answer to Question 61 WT/ACC/UKR/118. Question 40 In addition, for which reasons is the unified f ee expressed in Euro and the customs clearance fee 
expressed in US dollars ?  
Answer:
 
According to the Decision of the Cabinet of Ministers of Ukraine No.65 of 27 January 1997, the 
customs duty rate is defined in the US dollars, sin ce EURO did not circulate in 1997.  We believe that 
the establishment of rates in different currencies is not discriminative, since both of the currencies are 
freely convertible and generally accepte d in the international calculations. 
Question 41 
Please confirm which of the fees listed in table 3 will be eliminated on 1 January 2005 and which 
will not.  
As the levels of the customs clearance fees me ntioned in table 8a are applicable only up to 
1 January 2005, could Ukraine elaborate on the changes foreseen and provide an updated table 
with the fees applicable from January 2005? 
Answer:  
If we understand it correctly, the questi on is about fees listed in table 8. 
The Draft Law of Ukraine "On the State Budget of Ukraine for 2005" envisages the following 
amendments to the Customs Code of Ukraine, Se ction XXI "Final Provisions":  "1. The Customs 
Code of Ukraine comes into effect on 1 January 20 04, except for a part of Article 71, which comes 
into effect on 1 January 2006".  WT/ACC/UKR/125 
 Page 19 
 
 
 This will postpone till 1 January 2006 the entering in to force of the Resolution by the Cabinet of 
Ministers "On Charging of Fee for the Customs Cl earance of Goods and Vehicles Performed Out of 
the Location of Customs Bodies or Beyond the Hours of Operation Set for Customs Bodies" No. 93 of 18 January 2003 (table 8 (a) in the WT/ACC/SPEC/UKR/5/Rev.1). 
Question 42 
We would like to request  information on the system for setting tariffs for transport of goods by 
rail.  Are different railway tariffs applied for tr ansportation of imported and exported goods 
than those which apply for transportation within  Ukraine? Do the same tariffs apply for goods 
imported from and exported to all trading partn ers, or have preferential rates been agreed with 
certain partners? 
Answer:
 
Ukrainian railway is the natural monopoly and it ope rates pursuant to the current legislation of 
Ukraine. 
Legal, economic and organizational framework for th e state regulation is established by the Law of 
Ukraine "On Natural Monopoly" No. 1682-III of 20 Apr il 2000.  In line with Article 8 of this Law, 
there are prices (tariffs) for goods produced (sold) by subjects of natural monopolies. Along with this, 
the pricing policy is carried out with considerati on of legal, economic and organizational framework 
of the state regulation, determined by the following Laws of Ukraine:  Law of Ukraine "On Prices and 
Price Formation", "On Natural Monopolies", "On the Protection of Economic Competition", the 
Commercial Code of Ukraine and other legislative acts.  
The State tariff regulation of railway services is carried out in accordance w ith the Law of Ukraine 
"On Transport", "On Railway Transport", "On the Ratification of the Agreement on Carrying out a 
Coordinated Policy in Determining the Transport Tariffs" and Resolutions of the Cabinet of Ministers 
of Ukraine No. 1548 of 25 December 1996, No.457 of 6 April 1998 and No.105 of 21 January 2003. 
Regarding the system of application of tariffs fo r freight transported by the railway, the following 
information is available:  beginning from 21 Ja nuary 2003, the Cabinet of Ministers of Ukraine 
adopted the Resolution No. 105 "On Amendment of the Addendum to the Resolution of the Cabinet 
of Ministers of Ukraine No. 1548 of 25 December 1996", which eliminates the powers delegated to 
the Ministry of Transport Communication and the Mini stry of Economy of Ukraine in establishing the 
tariffs for freight transportation. The mechanism of  introduction of the proposals by the Ministry of 
Transport Communication into the Cabinet of Minist ers of Ukraine is developed, but the procedure 
for approval of tariffs is not established yet.  Moreover, the Law of Ukraine "On Prices and Price 
Formation", by its Article 10, provides for the pr ocedure for changing the level of tariff by those 
authorities of the executive power, which are empowered  to establish and regulate the tariffs. And the 
Ministry of Transport Communication, as was notified before, does not have such powers.  
Different tariffs for export, import and internal transportation were applied before 2004 to the 
following freight only: iron ore, coal, carbamide an d ferrous and non-ferrous scrap metal.  In 2004, 
this list was supplemented by cast iron, coke, oil products, fertilizers, grain and foodstuffs. 
Decisions on raising the tariffs for exports and ke eping them at the current level for internal 
transportation of certain freight were taken by the Cabinet of Ministers of Ukraine at the initiative of 
interested Ministries – first of all, the Ministry of  Industrial Policy, the Ministry of Fuel and Energy, 
the Ministry of Agricultural Policy and the Ministry of Finance. 
However, it should also be mentioned that different  tariffs for internal transport have long been 
applied by WTO members including Ukraine's cl ose neighbours such as Poland, Czech Republic, WT/ACC/UKR/125 
Page 20  
 
 Slovakia and other.  Thus, the tariffs for transporta tion of exported and imported of goods in Poland 
exceed the internal tariffs by 1.4 times, in Slovaki a – by 1.36 times, in Czech Republic – by 1.27, by 
1.5 – in Hungary, and in Ukraine, even after th e tariff indexation – just by 1.19.  Anyhow, present 
Ukrainian railway tariffs remain considerably lower th an those applied in the enlarged EU so that any 
possible economic impact on e xports should be negligible. 
The privileged tariffs are applied only for freight tr ansportation of ferrous metal, fertilizers, timber 
and tar of coal in the direction of Reny port, and fo r transportation of ferrous metal in the direction of 
Illichevsk port. 
As regards preferential rates they were not agreed w ith certain partners, particularly were not agreed 
with separate countries – participants of the CIS.   Provisions of the agreements on the railway 
functioning signed bilaterally on the intergovernmental  level with separate c ountries – participants of 
the Commonwealth of Independent States provide that  the Parties shall carry out a coordinated tariff 
policy.  Also, the provisions of separate intergovern mental agreements define the issues, on which the 
special bilateral agreements need to be signed be tween the separate economic operators.  The special 
bilateral agreements regarding the establishment of privileged tariff rates on passenger and freight 
transportation in interstate communication are not defined by the above mentioned intergovernmental 
agreements. 
Question 43 
Paragraph 76 and table 8a:  The fees mentioned in table 8a are not yet totally consistent with 
article VIII GATT as an ad valorem  fee does not correspond to the approximate cost of services 
rendered. For instance, an ad valorem  fee of 0.2 per cent of the customs value of the goods is 
levied for the customs clearance of goods whic h customs value is more than US$ 1,000. From 
US$ 1,001 to US $50,000 the fee levied is increasing even if the same service is rendered.  Above US$ 50,000 the fee is limited to a maximum of US$ 1,000 independently of the value of the 
imported goods. In order for Ukraine to comp ly with GATT Article VIII we request that 
Ukraine transforms all its remaining ad valorem  fees in flat fees independently of the value of 
the imported goods. 
Answer:
 
The representative of Ukraine confirmed that Ukra ine would ensure that any fees and charges for 
services rendered listed in Table 8(a) and 8(b) or in troduced in the future would only be applied in 
conformity with the relevant obligations of the GATT 1994, and from the date of accession any 
application of fees and charges by Ukraine for servi ces rendered on or in connection with importation 
or exportation would be in accordance 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 co llected and their use, would be provided to WTO 
Members upon request. 
Nowadays, the Draft Law of Ukraine "On the State Budget of Ukraine for 2005" envisages the 
following amendments to the Customs Code of Uk raine, Section XXI "Final Provisions":  "1. The 
Customs Code of Ukraine comes into effect on 1 Ja nuary 2004, except for a part of Article 71, which 
comes into effect on 1 January 2006".  In this resp ect, the unified fee of € 0.01 per kg shall be applied 
to imported oil products till 1 January 2006, as set fort h by the Resolution of the Cabinet of Ministers 
of Ukraine "On Amendment of the Resolution of the Cabinet of Ministers of Ukraine "On Customs Duty Rates" of 27 January 1997".  This will also  postpone till 1 January 2006 the adoption of the 
Resolution by the Cabinet of Ministers "On Charging of Fee for the Customs Clearance of Goods and 
Vehicles Performed Out of the Location of Custom s Bodies or Beyond the Hours of Operation Set for 
Customs Bodies" No. 93 of 18 January 2003.  WT/ACC/UKR/125 
 Page 21 
 
 
 - Application of internal taxes on imports 
 Excise Taxes  
Question 44 
Please confirm in the text that Ukraine applies it s excise taxes uniformly on all imports, i.e., on 
the basis of the "destination principle."  Please i ndicate if excise taxes are charged on exports. 
Answer:  
Ukraine applies its excise taxes on imports of ex cisable goods on an equal basis in accordance with 
the "destination" principle.  The list of excisable  goods is provided in Table 9 to the document 
WT/ACC/UKR/5/Rev/1. 
The excise taxes are not imposed on goods that have  been exported by an excise taxpayer outside the 
customs territory of Ukraine.  Goods are regarded  as exported by the taxpayer outside of Ukraine's 
customs territory in the event that the export of su ch goods is attested by a duly issued customs cargo 
declaration. 
Question 45 
Ukraine should eliminate discri minatory excise taxes applied to imports by the date of 
accession.   
In this regard, we suggest selection of a date- certain that corresponds with Ukraine's plans for 
accession and its tax/revenue cycle. 
Answer:  
[The representative of Ukraine confirmed that fro m the date of accession, Ukraine would apply its 
domestic taxes including the excise taxes and the va lue added taxes in [full] compliance with the 
relevant provisions of the WTO including Articles I and III of the GATT 1994, in a non-
discriminatory manner to imports from all WTO Members and to domestically produced goods [with exception from the excise taxes on autom obiles until 1 January 2007 and VAT - until 
1 January 2008.] 
Question 46 
Paragraph 82 and table 9:  For several goods th e excise duties mentioned in table 9 are higher 
for imported goods than for domestic goods.  Me mbers expect that the excise duties of Ukraine 
will be in full compliance with Article III GATT fr om the date of accession and that there will 
not be any discrimination against imported goods. 
Answer: 
 
[The representative of Ukraine confirmed that fro m the date of accession, Ukraine would apply its 
domestic taxes including the excise taxes and the va lue added taxes in [full] compliance with the 
relevant provisions of the WTO including Articles I and III of the GATT 1994, in a non-
discriminatory manner to imports from all WTO Members and to domestically produced goods [with exemption of automobiles on  the excise taxes until 1 January 2007 and VAT until 1 January 2008]. 
The Working Party took note of this commitment.] WT/ACC/UKR/125 
Page 22  
 
 Question 47 
Paragraph 85:  This paragraph states that exci se tax discrimination in favor of domestically-
produced motor vehicles will be phased out by 2007. 
In paragraph 91, however, Ukraine speaks of an exemption until 1 January 2008 for 
automobiles, which can be understood to concern both excise taxes and VAT.  Please clarify the 
situation for excise taxes (2007 or 2008).  Genera lly, we take note of Ukraine's intention to 
maintain the excise tax discrimination until 2007.  We will take a position at the appropriate moment. 
Answer:
 
The excise tax privileges expire in 2007. Since pa ragraph 91 reads about both, the excise taxes and 
VAT (latest expires in 2008), we proposed that varian t of the text.  But we are ready to propose more 
detailed amendments: 
[The representative of Ukraine confirmed that fro m the date of accession, Ukraine would apply its 
domestic taxes including the excise taxes and the va lue added taxes in [full] compliance with the 
relevant provisions of the WTO including Articles I and III of the GATT 1994, in a non-
discriminatory manner to imports from all WTO Members and to domestically produced goods [with 
exemption from the excise taxes on autom obiles until 1 January 2007 and VAT - until 
1 January 2008]. The Working Party took note of this commitment.]. 
The questions raised about the application in Ukrain e of internal taxes and some other measures in the 
automotive sector are dealt with in several parts of  the Draft Working Party Report.  The Table below 
gives an synoptic overview of the present legal situa tion and at the same time may help to understand 
the answers given to several other questi ons raised by Working Party members. 
Measures of Support in the Automotive sector  
Laws: Old law No.535/97 of 
19 September 19971    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 be fore 1 January 2004 No privileges 
Zero rate of VAT for cars 
produced   suspended, except for enterprises that had 
approved investment programs and investments done be fore 1 January 2004 No privileges 
Import duties: components 
exempt Import duties: components exempt Import duties: components exempt2 
land tax suspended, except for enterprises that had 
approved investment programs and investments done be fore 1 January 2004 No privileges 
Corporate income exempted 
from taxation Suspended, except for enterprises that had 
approved investment programs and 
investments done befo re 1 January 2004  Corporate profit exempted from 
taxation Privileges 
Exemption from excise duties 
Law:  On Excise Tax3 
Duration: until 1 January 2007  Exemption from  excise duties 
Law: On Excise Tax4 
Duration: until 1 January 2007 
                                                      
1 Details on page 17 of WT/ACC/UKR/116 
2 Details in paragraph 152 of draft Work ing Party Report WT/ACC/SPEC/UKR/5/Rev.1 
3 Law "On Excise Tax and Import Duty Rates on Ce rtain Motor Vehicles" No. 216/96-VR of 24 May 1996 
4 Law "On Excise Tax and Import Duty Rates on Ce rtain Motor Vehicles" No. 216/96-VR of 24 May 1996  
  WT/ACC/UKR/125 
 Page 23 
 
 
  Coverage:  enterprises producing 
more than 1,000 cars or 
motorcycles/year Coverage: enterprises producing more 
than 1,000 cars or motorcycles/year 
TRIMS: no local content requirement 
(was eliminated by Law of Nov. 2001)  local content requirement  
 
Question 48 
At the beginning of this section, i.e. before paragraph 81 there should be a reference to the 
Decree of Cabinet of Ministers of Ukraine "On Excise Duty" No. 18-92 of 26 December 1992 (as 
amended by the law of Ukraine No. 849-IV of 22 May 2003) and also an indication that Ukraine 
has three types of excise duties ( ad valorem , specific and combined or mixed rates). 
Answer:  
Ukraine takes note of this proposal.  
Question 49 
What will be the impact of the draft law "On Excise Tax" on the types of excise rates? 
Answer:  
The Draft Law of Ukraine on "On Excise Duty" infl uences the types of excise duty rates in such a 
way that after its adoption the unified specific ra tes of excise duty shall be collected on the whole 
territory of Ukraine.  If Ukraine signs an Intern ational agreement stipula ting an application of a 
different rate of excise duty, such rate shall be gr adually introduced during th e period of not less than 
five years after ratification of the relevant agreement by the Verkhovna Rada of Ukraine. 
Question 50 
As table 9 indicates excise duties for alcoholic be verages, ethyl alcohol, tobacco, petroleum, and 
motor vehicles, please indicate if the table 9 co ntains an exhaustive list of excise duties as 
jewellery was listed in the previous draft report (t able 9).  Is an excise duty levied on jewellery? 
Answer:  
No excise duty is levied on jewellery.  The ta ble 9 in the document WT/ACC/SPEC/UKR/5/Rev.1 
contains an exhaustive list of excise duties. 
 Value Added Taxes  
Question 51 
Paragraph 86:  Russia will soon eliminate the pr actice of applying VAT to exports of energy 
products to CIS countries.  Will Ukraine end its discriminatory practice of exempting these 
imports from VAT at that time? 
Paragraph  86: We have received information th at Russia has cancelled the application of VAT 
on energy exports to CIS countries including Ukra ine, with effect from 1 January 2005. What 
are the ramifications for Ukrain e's VAT regime, in particular the exemption for certain energy 
products imported from the Russian Federation?  WT/ACC/UKR/125 
Page 24  
 
 Answer:
 
Article 9 of the Draft Law of Ukraine "On the State Budget of Ukraine for 2005" states that beginning 
on 1 January 2005 all operations of gas importation on the customs territory of Ukraine shall be 
exempt from VAT based on external contracts, signe d to fulfil international agreements of Ukraine 
notwithstanding the country of origin. 
VAT on import of other energy products (incl uding raw oil and condensate of nature gas) will 
constitute 20 per cent notwithstanding the country of origin according to the article 6 of the Law of 
Ukraine "On VAT" No. 168 of 3 March 1997. 
Question 52 
Paragraph 88:  Ukraine states that VAT exemptio ns have been eliminated for imported inputs 
in shipbuilding and the construction of aircra ft, "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." 
How many instances of "signed contracts" are th ere, and how long do these contracts run?  
Answer:  
The total  number of contracts is 150.  The term of contracts varies considerably. 
Question 53 
Paragraph 89:  We understand that the practice of VAT exemptions for domestic agricultural 
goods sold by farmers has been eliminated in f avour of the establishment of a discriminatory tax 
level of 10 per cent on domestic goods and 20 per cent on imports, as provided for in the new law "On Amending Certain Laws of Ukraine on Taxation of Agricultural Enterprises and 
Support of Social Standards of Their Employees."   
If Ukraine intends to implement this practice, we  assume that this part of the report will be 
redrafted. 
Answer:
 
The Law of Ukraine "On Amendment of Certain Laws of Ukraine on Taxation of Agricultural 
Producers and Support of Social Standards fo r their Employees" supplements, as from the 
1 January 2005, the Law "On the Value Added Tax" with a new Article 81 dealing with a new special 
regime for taxation of agricultural producers.  The new special regime for taxation provides for 
taxation at a decreased VAT rate (until 1 January 2007 at a rate of 10 per cent), and for a possibility to 
dispose of calculated VAT funds at the discretion of  agricultural enterprises.  Agricultural enterprises 
are free in applying the special regime.  If an agricu ltural enterprise decides to transfer to the special 
regime, such enterprise needs to be registered as a subject of the special regime, if not – then 
agricultural enterprises return to the general regi me of VAT payment at the rate of 20 per cent. 
The draft Working Party report would be amended accordingly. 
Question 54 
We seek a commitment that this practice will be el iminated by the date of Ukraine's accession to 
the WTO.  WT/ACC/UKR/125 
 Page 25 
 
 
 Answer:  
Ukraine takes note. 
Question 55 
Paragraph 89:  Two special schemes for agricultural products exist.  What is the treatment of 
imported products?  Do they also benefit from  the same zero-rate or exemption?  Will the 
exemption system be prolonged after 2005?  
Answer:  
The same VAT rate is contemplated both for impor ted products and domestic products.  Two special 
mechanisms for the taxation of agricultural products  do not contemplate tax benefits with respect to 
imported or domestic agricultural products, which ar e taxed at the VAT of 20 per cent.  In the event 
that agricultural products are sold (under the first scheme – meat and milk products sold by processing 
enterprises, and under the second scheme – all agricu ltural products that are sold by agricultural 
enterprises), such agricultural products are subject to VAT at the rate of 20 per cent, but this VAT is 
not transferred into the budget, rather it is tran sferred from a current account  into separate (special) 
accounts that are opened by agricultural enterpri ses with commercial banks for purposes of using 
subsidy funds for purchases of material and techni cal resources and inputs.  Tax authorities control 
that the funds are used pursuant to their designated purposes.  
The term of special regimes with respect to the VAT (accumulation of the VAT and zero rates of the 
VAT for milk and meat) for agricultural producers has been prolonged up to 1 January 2005 by Law No. 1352 of Ukraine "On the Prolongation of Certai n Provisions in the Law of Ukraine "On the Value 
Added Tax".  
The Law of Ukraine "On Amendments to Certai n Laws of Ukraine on Taxation of Agricultural 
Producers and Support of Social Standards for their Employees" supplements, as from 1 January 2005, the Law "On the Value Added Tax" with new Article 81 dealing with a new special 
regime for taxation of agricultural producers.  The new special regime for taxation provides for 
taxation at a decreased VAT rate (until 1 January 2007 at a rate of 10 per cent), and for a possibility to 
dispose of calculated VAT funds at the discretion of  agricultural enterprises.  Agricultural enterprises 
are free in applying the special regime.  If an agricu ltural enterprise decides to transfer to the special 
regime, such enterprise needs be registered as a subjec t of the special regime, if not – then agricultural 
enterprises return to the general regime of VAT payment at the rate of 20 per cent. 
Question 56 
Paragraph 91:  We note the commitment language on the application of taxes to imports.  Are 
VAT exemptions for domestically produced auto mobiles the only area where Ukraine is seeking 
a transitional arrangement? 
Answer:
 
Ukraine confirms that tax exemptions for autom obiles is the only area where Ukraine is seeking a 
transitional arrangement (Ukraine notifies of its requ est to the effect that a transitional period with 
respect to projects in automobile-building industry  for the period till the end of 2008 be granted to 
Ukraine). WT/ACC/UKR/125 
Page 26  
 
 Question 57 
Paragraph 91: We take note of Ukraine's request  for an exemption for VAT discrimination for 
automobiles until 2008. We will take a position at the appropriate moment.  
Answer: 
 
Ukraine takes note of this comment. - Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 58 Paragraph 92:  Will this section need amendm ent after the amended law on Foreign Trade 
Activity comes into force? 
Answer:
 
This section will be updated once the amended Law on Foreign Trade Activity comes into force. 
Question 59 
Table 10:  Is this list of imports subject to licensing comprehensive? 
Answer:  
The list of imports subject to licensi ng provided in Table 10 is complete. 
The full version of all import licensing requireme nts, including import approvals, requirements 
regarding activity licence and on the right to impor t is provided in Tables 5-8 of the document  
WT/ACC/UKR/120. 
Question 60 
Table 10:  please update table 10 with the additional information contained in table 5 of 
WT/ACC/UKR/120 (i.e. indication of the entiti es responsible for issuin g the licence and for 
prior approval when requested, indication of th e legal basis and description of the measure as 
well as the WTO justification). 
Answer:  
Table 10 (after paragraph 97) of WT/ACC/SPEC/UKR /5/Rev.1 will be replaced with Table 5 of 
WT/ACC/UKR/120. 
Question 61 Paragraph 97:  WT/ACC/UKR/99/Rev.1 predates the amendment of the current Law on 
Foreign Economic Activity with regard to import licensing (July 2003) and the ongoing effort to further amend that law.   
Please revise WT/ACC/UKR/99/Rev.1 to reflect th e changes in that law that address Ukraine's 
application of import restrictions and its import licensing procedures. 
Please provide citations of all other relevant legislation.  WT/ACC/UKR/125 
 Page 27 
 
 
 Answer:  
WT/ACC/UKR/99/Rev.1 will be revise d and citations of all relevant  legislation will be provided as 
soon as the Draft Law on FEA is approved and comes into force. 
Question 62 
Paragraph 98:  As we noted in the last review,  there is overlap in the application of import 
licensing requirements and import approvals.  Some goods require both permits, others only 
one. 
Please expand Table 10 to include information on import approvals, both for licensed products 
and for those only needing an import approval.  (Note:  import approvals meet the definition of "licensing" in Article I of the Agreement.  End note)  
Answer:
 
Table 10 (after paragraph 97) of WT/ACC/SPEC/UKR /5/Rev.1 will be replaced with Table 5 of 
WT/ACC/UKR/120. 
Question 63 
Paragraph 98: Could you explain why prior appr oval is necessary in addition to import 
licensing for insecticides and herbicides? 
Answer:  
In order for the Ministry of Economy and Eur opean Integration to issue an import licence for 
insecticides and herbicides, prior approval (clearing)  is required from the sectoral state agencies in 
charge of regulation and control of plant and soil protection.  These are the State Inspection for Plant 
Protection of the Ministry of Agrarian Policy of Ukraine and the State Technological Centre for 
protection of Land Fertility of the Ministry of Agricultural Policy of Ukraine.  Prior approval 
(clearing) is required to ensure protection of plan t, soil and environment. This requirement complies 
with GATT and the WTO Agreement on Import Licensing. 
Question 64 
Paragraph 98:  This paragraph indicates that for some products a prior approval was required 
and that it was not automatic.  Please indicate for which products such a prior approval is 
required as well as the time frame to get this a pproval and the level of the fee charged if any. 
Answer:  
See the table below.  
 WT/ACC/UKR/125 
Page 28 Tariff Code Product Description Entity(i es) responsible for Applying the Measure Time frame to get 
the prior approval 
(clearing) Level of fee charged 
Issuance of Licence: Ministry of Economy and 
European Integration Prior Approval (Clearing): The main State Inspection for 
Plant Protection of the Ministry of Agrarian Policy of 
Ukraine for the imports of herbicides (code 3808 10, 3808 20, 3808 30) Within 10 
working days of receipt of the 
required 
documentation  Free of charge  
 
3808 10, 3808 20, 3808 30, 3808 90 (except for individual consignments, 
imported free of charge 
upon permission of the Ministry of Ecologic 
Resources exclusively for 
state testing, academic 
research and 
demonstrative experiments)  Insecticides (except for 
veterinary medicines),   fungicides, herbicides, other 
anti-sprouting products and 
plant-growth regulators, rodenticides (except 
veterinary medicines), as 
well similar remedies  Issuance of Licence: Ministry of Economy and 
European Integration 
Prior Approval (Clearing): The 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) Within 10 
working days of 
receipt of the required 
documentation 
 Free of charge 
 
3907 40 00 00 Optical polycarbonates for 
production of discs for laser 
reading systems   Issuance of Licence: Ministry of Economy and 
European Integration 
Prior Approval (Clearing): The Ministry of Education 
and Science  Within 15 
working days of 
receipt of the 
required documentation Free of charge 
2710 00 98 00, 3004, 
3208, 3209, 3212, 3214, 
3304, 3305, 3306, 3307, 3402, 3403, 3405, 3506 
91 00 00, 3808, 3809, 
3811, 3812, 3814 00, 3820 00 00 00, 3824 90 
70 00, 3824 90 95 00, 
3910 00 00 Products, which may 
contain ozone-depleting 
substances and are imported in aerosol package  Issuance of Licence: Ministry of Economy and 
European Integration 
Prior Approval (Clearing): Ministry of Environmental Protection   
for 3208, 3209, 3212, 3214, 3304, 3305, 3306, 3307, 
3402, 3403, 3405, 3506 91 00 00, 3808, 3809, 3811, 3812, 3814 00, 3820 00 00 00, 3824 90 70 00, 3824 90 
95 00, 3910 00 00 
 Within 15 
working days of 
receipt of the required 
documentation 
 Free of charge 
8415, 8418, 8424 10, 
8476 21 00 00, 8476 81 
00 00, 9304 00 00 00  Products, which may 
contain ozone-depleting 
substances Issuance of Licence: Ministry of Economy and 
European Integration 
Prior Approval (Clearing): Ministry of Environmental 
Protection   Within 15 
working days of 
receipt of the 
required documentation Free of charge  
  WT/ACC/UKR/125
 Page 29Tariff Code Product Description Entity(i es) responsible for Applying the Measure Time frame to get 
the prior approval 
(clearing) Level of fee charged 
2903 14 00 00, 2903 19 
10 00, 2903 30 33 00,  2903 41 00 00, 2903 42 
00 00, 2903 43 00 00, 
2903 44 10 00, 2903 44 10 00, 2903 44 90 00, 
2903 45 10 00, 2903 45 
15 00, 2903 45 25 00. 
2903 45 30 00, 2903 45 
30 00, 2903 45 35 00, 2903 45 40 00, 2903 45 
45 00, 2903 45 50 00,  
2903 45 55 00, 2903 45 90 00, 2903 46 10 00, 
2903 46 20 00, 2903 46 
90 00, 2903 49 10 00,  2903 49 30 00, 3824 71 
00 00, 3824 79 00 00, 
3824 90 95 00,  Ozone-depleting substances Issuance of  Licence: Ministry of Economy and 
European Integration Prior Approval (Clearing): Ministry of Environmental 
Protection   Within 15 
working days of receipt of the 
required 
documentation  Free of charge 
 
 WT/ACC/UKR/125 
Page 30  
 
 Question 65 
Paragraph 99:  This paragraph should specify if  the licenses are automa tic or non automatic. 
Please specify what you  mean by "a licence should  be issued in the shortest term possible"? 
Answer:
 
Article 16 of the Law "On Foreign Economic Activ ities" No. 959-XII of 16 April 1991 stipulates that: 
- In case of automatic licensing, the time period fo r issuance of the licen ce shall not exceed ten 
working days from the date, when the application and other necessary documents complying with the established requirements were received. 
As for non-automatic licence, the time period for consideration of applications shall not exceed 
30 days from the date, when the application was receiv ed, if such applications are considered in the 
order they have been received, and shall not exceed 60 days starting from the date, when the 
announced deadline for acceptance of application was over,  if all applications are considered together. 
Question 66 
The response to Question 93 in WT/ACC/UKR/118 confirms that a "certificate of product 
origin" is required for imports "subject to regulation by measures of regulating foreign 
economic activities."   
Does the phrase "subject to regulation by ... measu res of regulating foreign economic activities" 
include import licensing and import approvals?  
Answer:
 
No.  It does not, except for the import licensing  of ozone-depleting substances from countries 
determined according to the Montreal Protocol. 
Question 67 If so, why is this additional requirement necessary?  Is a fee charged for the generation of the 
certificate?  If so, is the fee ad valorem  or specific? 
Answer:
 
The certificate of origin is obtained from Chambers of  Commerce in the country of exportation.  It is 
subject to other countries' regulations and does not  fall under the jurisdiction of the Government of 
Ukraine. 
Question 68 
We would like to request further information on  Cabinet of Ministers Resolution No. 1191 of 
8 September 2004 "On changes to the Rules of importation of means of transport to the Ukraine's territory". Our understanding is that this Resolution prohibits the import into 
Ukraine of buses and trucks more then five years ol d.  Could you confirm that this measure will 
be phased out by accession?   WT/ACC/UKR/125 
 Page 31 
 
 
 Answer:  
The English text of the Cabinet of Minist ers Resolution No.1191 of 8 September 2004 "On 
Amendment of the Rules of Vehicles Importati on into Ukraine" will be provided to the WTO 
Secretariat.  
Ukraine confirms that from the date of accession it  will cancel the prohibition on imports of used 
buses and trucks more than five years old through an increase in the limitation so that trucks and 
buses that are less than eight years old may be import ed.  A Draft Law to this effect was submitted to 
Cabinet of Ministers of Ukraine for consideration. 
- Customs valuation 
Question 69 
We are reviewing the responses to th e questions tabled on this issue at the last Working Party 
meeting, and we look forward to the new legisl ation that will implement the missing provisions 
we have identified. 
Paragraph 104:   The term "contract price" used in this section is incorrect.   The Agreement on 
Customs Valuation and the document referred to in Paragraph 104 
(WT/ACC/UKR/110/Add.2), which explains the Ukrainian Customs Code, both define the 
principal valuation methods as "the price actu ally paid or payable for goods when sold for 
export to the country of importation."   This is a term of art different from the wording of 
"contract price."  In addition, there is no indication of the relationship of this word to the concept of "invoice price" which is closely associated with the definition used in the WTO Agreement. 
We would appreciate Ukraine's clarification on this point. Answer:
 
It is possible that the above question appeared in th e result of misinterpretation.  Instead of the term 
"the price of contract" the term "transaction value" should be used. 
Question 70 
Paragraphs 105-106: What is the anticipated timing for the draft Law to amend the Customs 
Code to ensure the integration of the Interpretat ive Notes? We look forward to receiving this 
legislation, once available. 
Answer:  
The relevant legislation is being drafted and the internal procedures are underway.  After that, Ukraine 
will provide the English text of this draft legal act. 
Question 71 Paragraph 106:  We note the fee listed in Table 8(a) of US$ 1,500 for firms to be recognized as 
declarants.  This appears to be a disguised tax on importers that chose not to use brokers to bring their goods through customs.  Is this fee slated for elimination with other customs fees? WT/ACC/UKR/125 
Page 32  
 
 Answer:
 
Yes, this fee is slated for elimination. However, the Draft Law of Ukraine "On the St ate Budget of Ukraine for 2005" envisages the 
following amendments to the Customs Code of Ukra ine, Section XXI "Final Provisions":  "1. The 
Customs Code of Ukraine comes into effect on 1 Jan uary 2004, except for a part of Article 71, which 
comes into effect on 1 January 2006".  This w ill postpone till 1 January 2006 the adoption of the 
Resolution by the Cabinet of Ministers "On Charging of Fee for the Customs Clearance of Goods and Vehicles Performed Out of the Location of Custom s Bodies or Beyond the Hours of Operation Set for 
Customs Bodies" No. 93 of 18 January 2003. 
Question 72 
Paragraph 106:  as of which date will decisions of court bodies, in particular in the customs 
valuation area, be available on the internet?  
Answer:
 
We cannot specify the exact date, the St ate Customs Office is working on this. 
Question 73 
Paragraph 107: Concerning the prohibited forms of  valuation, the provision of Article 273 of 
the Customs Code that states that "arbitrary or  not-credible importation may not be used:"  
This phrasing does not appear to directly prohibit the use of "arbitrary or fictitious values" to 
determine customs values.   
Answer:  
To our consideration, the mentioned extract from th e Customs Code of Ukraine does not give reasons 
to doubt the possibility to determine the custom s value of the goods based on the "arbitrary or 
fictitious values". 
It is possible that the question appear ed as a result of misinterpretation.  
Question 74 
Paragraph 107: this paragraph indicates that "confidential business information could be 
disclosed by court order, in connection wi th criminal investigations conducted by law 
enforcement agencies and the tax administration, or if secrecy could endanger the life or health of the population." According to Article 10 of th e Agreement on customs valuation, confidential 
information cannot be disclosed without the speci fic permission of the person concerned except 
in the context of judicial proceedings.  There are no such cases as danger for the life or health of 
the population foreseen by this article.  Could you please give more information on the cases 
where a danger for the life or health of the popul ation allows disclosing confidential information 
according to your legislation?  WT/ACC/UKR/125 
 Page 33 
 
 
 Answer:  
Information could be disclosed without the specifi c permission of the person concerned in case if it 
relates to the threat to life or health of populatio n, particularly - the quality of food products and 
consumer goods. 
Question 75 
Regarding the new law "On State Support of Ag riculture in Ukraine," wouldn't the minimum 
prices applied to imports for agricultural domest ic price support act as substitute customs 
values for these imports?  Does that conflict with Ukraine's approach to the content of 
Article 273?   
We seek clarity on this point, both in the Cust oms Code and in terms of the legal precedence of 
these apparently conflicting pr ovisions in Ukraine's law. 
Answer:  
Provisions of the Law of Ukraine "On State Support of Agriculture in Ukraine" do not provide for 
applying minimum purchase prices on imported goo ds.  The minimum purchase price is only an 
indicator for undertaking financial interventions  and is set to support revenues of domestic 
agricultural producers at such a level as makes th e average statistical unprofitableness in Ukraine 
impossible for a metric unit subject to price regulation.  
Customs value of imported goods is determined in accordance with the provisions of Article 273 of 
the Customs Code of Ukraine.  
The Law provides that minimum and maximum purchase prices in case of export or import of 
products shall be applied only in instances as are sp ecified in Article 8 of "Temporary Administrative 
Regulation of Prices and Temporary Budget Subsidie s" in this Law.  If bodies of the Antimonopoly 
Committee of Ukraine adopts a conclu sion that there are concerned actions on the part of operators on 
the market and/or a decision to protect market co mpetition on the organized agrarian market (i.e., 
during exchange trades pursuant to exchange agre ements and rules of the agrarian exchange). 
Question 76 
Paragraph 108:     We note the commitment language on customs valuation, and suggest the 
following redrafted language: 
108.   The representative of Ukraine confirmed th at, from the date of accession, Ukraine would 
apply the WTO provisions concerning customs valuation, including the Agreement on the Implementation of Article VII of the GA TT 1994 and Annex I (Interpretative 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 price 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 Implementation of Article VI I of the GATT 1994.  The Working Party took 
note of these commitments. 
Answer:
 
Ukraine takes note. WT/ACC/UKR/125 
Page 34  
 
 Question 77 
Paragraph 108: Please add "The Working Party t ook note of these commitments" at the end of 
this paragraph. 
Answer:
 
Ukraine takes note of this proposal. - Rules of origin Question 78 Paragraph 109: We seek an update on the status of the supplementary legislation referred to in 
the paragraph to implement the requirements of Article 2(h) and Annex II, paragraph 3(d) of 
the Agreement on Rules of Origin. 
Answer:
 
The Cabinet of Ministers of Ukraine has adopted  a Resolution "On Supplementing the Procedure for 
Identifying the Country of Origin of a Product Wh ich is Moved Across the Customs Border of 
Ukraine" No. 1443 dated 28 October 2004.  The Reso lution aims at ensuring the implementation of 
the requirements of Article 2(h) and Annex II, para graph 3(d) of the Agreement on Rules of Origin. 
The Resolution establishes that at th e request of the exporter, importer or other interested person, the 
customs authority adopts a preliminary decision about the country of origin of goods just before the goods are put into trade, but not later than 150 da ys from the moment the customs authority receives 
such request.  
A preliminary decision on the country of origin, whic h is obligatory for all customs authorities, is in 
effect during three years from the day of its adoption, if the decision is not recalled or its action is not 
terminated. 
The Customs authority may adopt a decision to terminate or recall the preliminary decision about the 
country of origin, if such a decision is adopted on  the basis of forged documents submitted by the 
applicant or if the documents contain untruthful data. 
Decision on termination of the preliminary decision on the country of origin of goods comes into 
effect from the day of approval of the previous decision. 
An adopted preliminary decision on the country of origin of goods may be recalled in case of: - amendment of the commodity nomenclature CN FEA; 
- establishment of other requirements and conditions  for determining the origin of goods by the 
International treaties, to which Ukraine is a part y, or by Ukrainian legislation on determining 
the country of origin and/or on rules of dete rmining related to the country of origin; and 
- adoption by the State authorities of the executiv e branch of decisions, which establish other 
requirements and conditions for determin ing the country of origin of goods. 
The form and procedure for adoption, termination or recalling the preliminary decision on the country 
of origin of goods are defined by the State Customs Service.  WT/ACC/UKR/125 
 Page 35 
 
 
 Question 79 
Paragraph 109 refers to the Resolution of  the Cabinet of Ministers No. 1864 of 
12 December 2002. In this resolution the terms "certificate of country of origin" and "declaration of country of origin" are used. Could you explain the differences between these 
two documents, and the circumstances in which each document will be required?  Are there any 
other legislative acts which regulate rules of orig in other than the Customs Code and Resolution 
No. 1864?  In which legislative act are preferential rules of origin detailed?  Do they apply to 
any countries other than the CIS countries?  Articles 278 and 279 of the Customs Code state that for particular goods and particular countri es, criteria of sufficient processing shall be 
established. Could you clarify this reference to particular countries. 
Answer:
 
The Declaration of origin of the product is the pr oducer's or exporter's statement (on the invoice or 
other document of title) of the country of origin of the product, certified by them or by the body 
authorized to issue Certificates. 
A certificate on a good's origin must unequivocally attest to the fact that the good in question 
originates from the respect ive country, and must contain the following:  
- An exporter's written statement on the country of the good's origin;  
- A written certificate of a competent authority of the exporting country having issued a 
certificate to attest to the fact that the data contained in the certificate are true; and 
- A certificate of the good's origin shall be su bmitted along with the customs declaration, 
declaration of the customs value. 
Pursuant to the Article 282 of the Customs Code of Ukraine, in case of import of the goods into the 
customs territory of Ukraine a certificate of or igin of goods must be submitted obligatory: 
- for the goods, originating in countries, to wh ich Ukraine applies preferential treatment in 
accordance with the Custom s Tariff of Ukraine; 
- for the goods, import of which from respective countries is subject to regulation by 
quantitative limitations (quotas) or other meas ures of regulating foreign economic activities; 
- if so is provided by international agreements  of Ukraine, concluded in accordance with the 
procedure established by law, and also by Uk rainian legislation on environment and health 
protection; and 
- in cases where documents, that are submitted for customs clearance purposes, do not contain 
information concerning the origin of goods, or if  a customs authority has sufficient reasons to 
believe that the declared information rega rding the origin of goods is incorrect. 
Article 284 of the Customs Code of Ukraine establishes that goods, the country of origin of which has 
not been reliably established, shall be released by a customs authority on condition of payment at full 
rates of the customs duties. 
In line with paragraph 4 of the Resolution of the Cabinet of Ministers of Ukraine "On the Procedure 
for Identifying the Country of Origin of Product which is Moved Across the Customs Border of 
Ukraine" the declarer shall identify the country of  origin of a product, which is moved across the 
customs border of Ukraine, on the basis of the Certif icate of origin of the product or the Declaration 
of origin of the product, which shall be submitte d to the Customs body for the confirmation of the 
data.  WT/ACC/UKR/125 
Page 36  
 
 Thus, in case the certificate of origin of goods is absent, the declarer may confirm the country of 
origin on the basis of the declaration on the origin of goods. 
According to the Article 283 of the Customs Code of  Ukraine, a certificate of origin of goods must 
unambiguously state that the goods in question originate in the respective country, and must specify: 
 1. a written statement of the exporter on the country of origin of goods; and 
 2. a written statement of a competent au thority of the exporting country, which has 
issued the certificate, stating that informa tion reflected in the certificate is correct. 
In addition to the Customs Code of Ukraine and the Resolution of the Cabinet of Ministers of Ukraine 
No. 1864, the following legislative acts regulate the rules of origin: 
- Resolution of the Cabinet of Ministers of Ukraine No. 1861 of 12 December 2002, which 
approves the Procedure for the Verification of Ce rtificates of the Ukrainian Origin of Goods; 
and 
- Resolution of the Cabinet of Ministers of  Ukraine No.2030 of 27 December 2002, which 
approves the Schedule of Production and Technological Processes for Determining the Criterion of Sufficient Processing of Goods, and on the Procedure for the Establishment and 
Application of  the Criterion in Determ ining the Country of Origin of Goods. 
At the current moment, Ukraine has signed bilatera l agreements on free trade with the CIS countries 
and FYROM. 
The country of origin of goods in trade relations w ith CIS countries is determined in compliance with 
the Rules for Determining the Country of Origin of Goods, approved by the Decision of the Council 
of Chairs of CIS Governments of 30 Nove mber 2000 (of the international agreement). 
The noted Rules are applied exclusively to goods or iginating in the CIS countries and circulating in 
mutual trade between these countries. 
Rules of determining the country of origin estab lished by the Free Trade Agreement between Ukraine 
and the Republic of Macedonia are applied in trade with the Republic of Macedonia. 
Rather than establishing detailed rules for determ ining the country of origin of goods entirely 
produced in the country, Article 278 of the Custom s Code of Ukraine sets forth the list of goods 
deemed to be entirely manufactured in a country. 
In accordance with Article 279 of the Customs C ode, insofar as there are two and more countries 
involved in a good's production, the good's origin is determined in accordance with the sufficient 
processing criterion. 
The sufficient processing criterion is determined by: 
- A rule requiring, as a result of the good's pro cessing, modification of a classification code 
according to the Harmonized System of Goods D escription and Coding at the level of any of 
the first four digits; 
- or an ad valorem  proportion rule which implies a change in a good's cost as a result of its 
processing inasmuch as the added value equals at least 50 per cent of the cost of a good 
obtained through its processing, or as long as the share of the used materials from another 
country or from an unidentified source accounts for less than 50 per cent of the cost of the first good obtained as a result of processing.  WT/ACC/UKR/125 
 Page 37 
 
 
 If, with regard to a specific good or a specific country (countries), a sufficient processing criterion 
appears to be not identified, then a rule shall apply where-under a good is deemed to have undergone 
sufficient processing to the extent that its processi ng has led to changes in a classification code 
according to the Harmonized System of Goods Descriptio n and Coding at the level of any of the first 
four digits. 
The sufficient processing criterion refers to non-pref erential origin of goods transferred across the 
customs border of Ukraine. 
Sufficient processing criteria for specific goods and countries are established and applied in meeting 
requirements of the Customs Code of Ukraine. 
For particular goods (according to the codes of CN FEA), the Resolution of the Cabinet of Ministers 
of Ukraine No. 2030 of 27 December 2002 establishes a Schedule of Production and Technological 
Processes for Determining the Criterion of Sufficient Pr ocessing.  It doesn't apply to goods originating 
in countries with which Ukraine has signed internatio nal agreements (interstate or intergovernmental) 
regulating the procedure for determining the country of origin of goods and the criterion of sufficient 
processing. 
When determining the country of origin of goods  imported into the customs territory of Ukraine 
subject to conditions of any preferential customs regime, the schedule of production and technological 
processes for determining the criterion of suffi cient processing approved by the above mentioned 
Resolution shall apply. 
But at the current moment, the national legislation does not provide for the application of preferential 
treatment. 
Question 80 Paragraph 110:  What percentage of value ad ded confers substantial transformation on an 
import from CIS?  Are there residency rules fo r the exporter or any rules against transhipment 
through a third country in order to bene fit from the preferential tariff rate? 
Answer:
 
Imports from the CIS countries is deemed to be subs tantially transformed in the event that an added 
value share exceeds 50 per cent. 
According to the Rules for Determining the Country of Origin of Goods (paragraph 9) approved by 
the Decision of the Council of Chairs of CIS Govern ments of 30 November 2000, the product shall be 
subject to the free trade treatment within customs te rritories of the states parties to the Agreement if it 
complies with the criteria of origin est ablished by the present Rules, and is:  
- exported on the basis of a contract/agreement be tween a resident of one state party to the 
Agreement and a resident of another state part y to the Agreement, and is imported from the 
customs territory of the former state party to the Agreement into the customs territory of the 
latter state party to the Agreement; and 
- imported by a natural person resident of the stat e party to the Agreement from the territory of 
one of the signatories into the customs territory of another state party to the Agreement.  
In such case the goods shall not leave the territory of states parties to the Agreement except for cases 
if such transportation is impossible due to a geogra phical location of the member state or any of its WT/ACC/UKR/125 
Page 38  
 
 territory, as well as cases agreed upon with comp etent authorities of the states parties to the 
Agreement exporting and importing goods. 
Question 81 
Paragraph 111: As regards the refund of custom s duties for imports which have paid the 
"common rate" but which are eligible for the "p rivileged rate", what kind of procedures and 
timetables are in use in Ukraine? Could Ukraine specify the products or product groups subject 
to the mandatory certificate of origin?  What do es the mention in line 7 of this paragraph of 
"other interests vital to Ukraine" mean?  Is it  possible to present a guarantee and thus avoid 
paying higher customs duties?  The rules of orig in are also applied in free zones.  Are these 
specific rules of origin or are they include d in the legislation regulating free zones? 
Answer:
 
Pursuant to the Article 284 of the Customs Code of Ukraine, the goods, the country of origin of which 
has not been reliably established, shall be released  by a customs authority on condition of payment at 
full rates of the customs duties. 
Pursuant to the Article 282 of the Customs Code of Ukraine, in case of import of the goods into the 
customs territory of Ukraine a certificate of or igin of goods must be submitted obligatory: 
- for the goods, originating in countries, to wh ich Ukraine applies preferential treatment in 
accordance with the Custom s Tariff of Ukraine; 
- for the goods, import of which from respective countries is subject to regulation by 
quantitative limitations (quotas) or other meas ures of regulating foreign economic activities; 
- if so is provided by international agreements  of Ukraine, concluded in accordance with the 
procedure established by law, and also by Uk rainian legislation on environment and health 
protection; and 
- in cases where documents, that are submitted for customs clearance purposes, do not contain 
information concerning the origin of goods, or if  a customs authority has sufficient reasons to 
believe that the declared information rega rding the origin of goods is incorrect. 
Other interests being vital for Ukraine imply inte rests ensuing from the Constitution of Ukraine and 
they are of ecological, economic, information safety with the aim to follow to prevent the national 
interests of Ukraine and to preven t internal and external threats 
In compliance with Article 284 of the Customs Code  of Ukraine, goods may be subject to applying 
(restoring) MFN treatment or preferential treatment conditional on obtaining a duly issued certificate 
of their origin. Goods whose origin is not established for certain shall be released by customs 
authorities subject to a full duty rate payment. 
According to part 2 of the Article 285 of the Cust oms Code of Ukraine, the specifics in determining 
the country of origin of goods that are imported from the territories of special (free) economic zones, located in the territory of Ukrain e, shall be established by law. 
The country of origin of goods in special economic  zones is determined in accordance with the 
procedure established by the Article 18 of th e Law of Ukraine "On Singe Customs Tariff" 
No. 2097-XII of 5 February 1992.  WT/ACC/UKR/125 
 Page 39 
 
 
 Question 82 
Paragraph 112:  We note the commitment language on rules of origin, and we suggest language 
for a more detailed commitment paragraph: 
112.     The representative of Ukraine confirme d that from the date of accession Ukraine's 
preferential and non-preferential rules of orig in would comply fully 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 origin of the import and outline the terms under which it will be provided, would be established in Ukraine's legal framework prior to accession.  The Work ing Party took note of this commitment. 
Answer: 
 
We take note of this suggestion, and taking in to account that Ukraine has already adopted the 
legislation regarding requirement s of Article 2(h) and Annex II,  paragraph 3(d), we propose the 
following language: 
[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] 
- Other customs formalities 
Question 83 Paragraph 113-114:  The use of non-governmental facilities to establish classification of imports 
is problematic, in that the normal protections of WTO provisions would not necessarily be observed, nor would the right of appeal to Ukra inian customs authorities and subsequently an 
"independent tribunal" be guaranteed. 
We need more information on how importer s recourse to the Chamber of Commerce is 
required and handled. 
Answer:
 
Involving the Chamber of Commerce in determinati on of the classification of a good being imported 
is not a problem, and takes place only in those instances when a good's classification (or HS 
codification) presents a difficult technical challenge or when a customs official and an importer (declarer) have different opinions con cerning the code of a good in question. 
Any resident or non-resident has the right to a pply to a state authority requesting to address the 
questions, referring to the jurisdiction of such an au thority.  In the event that the applicant is not 
satisfied with the outcomes, they may appeal the re ndered decision in court.  Information pertinent to 
appealing decisions in court is presente d in Paragraph 52 WT/ACC/SPEC/UKR/5/Rev.1 
- Preshipment inspection 
Question 84 Paragraph 116:  We note the commitment lang uage on pre-shipment inspection, and suggest 
that expanded language would be needed.   We propose something more like the following: WT/ACC/UKR/125 
Page 40  
 
 The representative of Ukraine confirmed that if Ukraine employed Pre-shipment inspection 
services in the future, the Government of Ukrain e would comply with the provisions ensure that 
the requirements of the WTO Agreement on Pr eshipment Inspection were fully implemented 
and that the operations of any preshipment insp ection companies retained by Ukraine met the 
requirements of the WTO Agreements, including  the Agreement on the Implementation of 
Article VII and Articles VIII and X of the GATT 1994. The Working Party took note of these 
commitments. 
Answer:
 
Ukraine takes note. Such commitment langua ge is provided in the paragraph 116 of 
WT/ACC/SPEC/UKR/5/Rev.1. 
- Anti-dumping, countervailing duties, safeguard regimes Question 85 Paragraph 121 indicates that the volume and value of imports are monitored through non-
restrictive import licensing in the case of th reat of injury. Please confirm that these are 
automatic import licenses.  
Answer: 
 
Ukraine confirms that paragraph 121 sp eaks about the automatic import licensing. 
Question 86 
Paragraph 122 mentions that some provisions of the Law "On the Application of Safeguard 
Measures Against Imports to Ukraine" are inconsistent with the WTO Agreement on 
safeguards and that the Government has prepared  a draft law to bring its domestic legislation 
in line with WTO requirements.  This is a we lcome development. Could Ukraine provide a 
translation of the draft law to the Working Party ?  
Answer:  
The English text of the draft law was submitted to the Secretariat. 
Question 87 
Paragraph 125:  We note the commitment language  on trade remedies, and suggest that it be 
expanded in the following manner: 
125. The representative of Ukraine confirmed that Ukraine would not apply any anti-
dumping, countervailing or safeguard measu re until it had notified and implemented 
appropriate laws in conformity with th e provisions of the WTO Agreements on the 
Implementation of Article VI, on Subsidies a nd Countervailing Measures, and on Safeguards.  
In the elaboration of any legislation concerning such anti-dumping, countervailing and 
safeguard measures Ukraine would ensure thei r 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 Safeguards.  After such legi slation was implemented, Ukraine would also 
apply any anti-dumping duties, countervailing duties and safeguard measures in full conformity 
with the relevant WTO provisions.  The Working Party took note of these commitments.  WT/ACC/UKR/125 
 Page 41 
 
 
 Answer:  
[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 servi ces rendered, application of internal taxes 
Question 88 Paragraph 96: We understand that Ukraine applies an export tax of € 30 per ton on ferrous 
scrap.  
We would appreciate clarification on Ukraine's in tentions to reduce or eliminate this and other 
export taxes. 
Paragraph 126 ff. Export duties: from the information provided, it seems that Ukraine only 
intends to undertake very limited reductions of export duties even though it acknowledges in 
paragraph 128 that reductions are needed. We urge Ukraine to consider further reductions and 
the eventual phase-out of all export duties. Co uld a commitment paragraph be added to this 
section.  
Answer:
 
From the date of its accession to the WTO, Ukrain e commits to reduce an export duty for ferrous 
waste and scrap (7204 Ferrous waste and scrap; reme lting scrap ingots of iron or steel) from € 30 to 
€ 25 for 1 ton upon accession, and to € 20 for 1 ton – during the next five years (€ 1 annually). 
From the date of its accession to the WTO, Ukrain e undertakes to reduce the export duty on livestock: 
- 0102; 0102900500; 0102902100; 0102902900; 0102904100; 0102904900; 0102905100; 
0102905900; 0102906100; 0102906900; 0102907100; 0102907900; 0102909000 "Live bovine animals" from 75 per cent to 60 per cent; 
- 0104; 0104101000; 0104103000; 0104108000 "Live sheep and goats" from 50 per cent to 
40 per cent; and 
- With further reduction in the course of four years by 5 per cent annually.  
Raw furskins: - 4101 "Whole raw hides and skins or leather of equine animals" from 30 per cent to 20 per 
cent; 
- 4102 "Raw sheep leather or lamb hides" from 30 per cent to 20 per cent; 
- 4103900000 "Others" from 27 per cent to 20 per cent; and 
- With further reduction in the course of five years by 1 per cent annually. 
From the date of its accession to the WTO, Ukra ine commits to reduce a duty rate for export of 
sunflower (1206), flax (1204009000) and only rye (1207999900) from 17 per cent to 15 per cent, 
subject to further reduction in the course of the following five years by 1 per cent annually.  WT/ACC/UKR/125 
Page 42  
 
 Question 89 
This section will need a commitment.  We suggest that the following can be used as a guide: 
131.     The representative of Ukraine confirmed that at present export duties were applied only 
to the goods listed in Table 13.  Ukraine would progressively reduce the export duties listed in 
Table 13 according to the timetable indicated.  After accession to the WTO, Ukraine would 
minimize the application of export duties on ot her products and apply such measures only in 
accordance with the provisions of the WTO Agre ement.  He further confirmed that the current 
duties and any changes in their application woul d be published in the Official Gazette.  The 
Working Party took note of these commitments  
Answer: 
 
Ukraine takes note.  The term "minimize the applic ation" is not very clear and it is doubtfully that 
there are any relevant requirements regarding export duties in the WTO Agreements. 
Question 90 
Paragraph 130:  Please add the reference to the we b site (as indicated in answer to Question 136 
in WT/ACC/UKR/118) where up-to-date informat ion on minimum indicative prices can be 
found as these prices change every month (www.ukrdzi.com.ua) 
Answer:  
The comment has been taken into account in  the revised version of the document 
WT/ACC/SPEC/UKR/5/Rev.1. 
- Export restrictions 
Question 91 
Table 15:  What "precious metals" are subject to export restrictions in HS item numbers 2616 
and 2843?  Are any such restrictions currently in place? 
Answer:  
Item number 2616 of HS includes precious metal ores and concentrates;  Item number 2843 of HS includes colloidal precious metals; inorganic or organic compounds of 
precious metals, whether or not chemically  defined; amalgams of precious metals. 
Export of these products is subject to quantita tive control. Please see Table 10 of document 
WT/ACC/UKR/120 for details. These measures are currently in place. 
Question 92 
Paragraph 133:  Are the HS numbers for goods requiring export licence the same as those for 
imports?  If so, please note this in the text. 
Answer:
 
The HS numbers for goods requiring export licence are the same as those for imports.   WT/ACC/UKR/125 
 Page 43 
 
 
 Question 93 
Paragraph 133:  According to our information, Uk raine has introduced export licensing for iron 
ores and concentrates on 29 April 2004.  We no w understand that this measure may have been 
repealed.  Could you clarify the situation?  If this measure is still in force, please confirm that 
this licensing is automatic and provide a justif ication for the introduction of this measure. 
Answer:  
Pursuant to the Resolution No. 546 of the Cabinet of Ministers of Ukraine "On Amendment of the 
Resolution of the Cabinet of Ministers of Ukraine No. 1996 of  24 December 2003", dated 29 April 2004, the regime of automatic export licensi ng was introduced in Ukrain e for coke, coke coal 
and iron ores.  
The said Resolution was adopted in order to improve the mechanism for state re gulation of operations 
with those types of raw materials, which are st rategic for Ukraine, and to balance the economy. 
In connection with the stabilization of the situation on the national market for coke and coke coal, the 
Cabinet of Ministers of Ukraine adopted the Reso lution No. 883 on 12 July 2004 "On Amendments to 
Annex 15 to the Resolution No. 1996 of the Ca binet of Ministers of Ukraine, dated 
24 December 2003", whereby coke and coke co al was removed from the list of goods whose 
exportation was subject to licensing. 
Question 94 
Paragraph 134: What are the government's intent ions to lift the export ban on non-ferrous 
scrap? 
Ukraine's export prohibition on nonferrous scra p is clearly WTO inconsistent and must be 
addressed prior to the conclusion of the negotiati ons.  The ban on nonferrous scrap has been in 
place for five years.  How much longer does Ukraine understand that this "temporary" measure 
will remain in place? 
Answer:
 
Ukraine commits to eliminate a prohibition on th e exportation of non-ferrous scrap and substitute 
such prohibition with setting of an  export duty rate before accession  to the WTO. The possible value 
of export duty is being estimated. The final value will be provided later. 
Question 95 
Paragraph 137:  Please provide an update of th e revision of your export licence fee system 
aiming at complying with the WTO requirements.  
Answer:  
The Draft Decision of the Cabinet of Ministers of  Ukraine "On Amendment of the Decision of the 
Cabinet of Ministers of Ukraine No. 312 of 5 November 1991", which establishes the fixed size of the state duty for the issuance of export licence in the regime of automatic and non-automatic licensing is 
being prepared and the internal procedures are underway.  
After that, Ukraine will provide the Engl ish text of this draft legal act.  WT/ACC/UKR/125 
Page 44  
 
 Question 96 
Paragraph 139:  We note the co mmitment language on export restrictions, and we suggest the 
following revised text: 
The representative of Ukraine confirmed that fr om the date of accession the export licensing 
requirements and other export restrictions a nd control requirements listed in Table 15 and 
paragraph 133 of this report 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.  The export ban on nonferrous scrap me tal would be eliminated from the date of 
accession.  The Working Party took note of this commitment. 
Answer:
 
Ukraine takes note. 
Question 97 
 Paragraph 139 Please add "The Working Party took  note of these commitments" at the end of 
this paragraph. 
Answer:  
Ukraine takes note of this proposal. 
Question 98 
Paragraph 139: additional language proposed:  He  also confirmed that any existing or future 
export licence fee would be consistent with article VIII GATT. 
Answer:  
Ukraine takes note. - Export subsidies Question 99 Paragraph 141 should be converted to a commitment. 
Answer:
 
[From the date of accession Ukrain e will not maintain subsidies, including export subsidies which 
meet the definition of a prohibited subsidy, with in the meaning of Article 3 of the Agreement on 
Subsidies and Countervailing Measures, [excep t for subsidies to automotive industry until 
31 December 2008] and that it will not introduce such prohibited subsidies in the future, The Working 
Party took note of this commitment.]  WT/ACC/UKR/125 
 Page 45 
 
 
 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies Question 100 Paragraph 144:  As stated in the working do cument, the Law "On Measures of State Support 
for the Ship-Building Industry in Ukraine" provid es deferred tax payments to the shipbuilding 
industry until 1 January 2005.   
Does the Ukraine have plans to continue the support after 1 January 2005?  Will there be 
benefits that continue after this period?  If  so, please provide the details of these subsidy 
benefits. 
Answer:
 
The Law of Ukraine "On State Support to the Shipbuilding Industry of Ukraine" expires on 
31 December 2004. 
Furthermore, a new revision of the Law of Ukrain e "On Value Added Tax" enters into effect on 
1 January 2005.  On the date of its enactment, a moratorium will be established on granting of new 
and on the expansion of the existing preferences. 
Question 101 Could the Ukraine please explain what is meant by the approval being based on the results of 
these enterprises in previous years?  What cri teria must be met to receive the benefits?  
Answer:
 
The List of shipbuilding companies authorized to receive government support was approved by the 
Resolution of the Cabinet of Ministers of Ukraine on 16 July 2000 based on the results of economic 
efficiency (i.e. production volume, sales volume, nu mber of people employed, absence of tax debts) 
for the previous period.  Please note that the La w "On government support for shipbuilding industry" 
will no longer be in force after 31 December 2004. 
Question 102 
Paragraphs 147 and 151:  It is our understanding that the Law "On the State Budget of 
Ukraine for 2004", has suspended VAT privile ges for different sectors (i.e. aircraft and 
automobile) during 2004.  
Could the Ukraine explain if the VAT susp ensions will be extended into 2005?    
Answer:  
The Draft Law of Ukraine "On Value Added Ta x" envisages the exemption from taxation of 
operations involving importation (carrying) into th e customs territory of Ukraine of materials, 
products components and equipment for aircraft-build ing industries covered by Article 2 of the Law 
of Ukraine "On State Support to Aircraft-Building Industry of Ukraine" provided that the contracts had been entered into before this Law came into e ffect and that the total of advance payments exceeds 
30 per cent of the contract price. WT/ACC/UKR/125 
Page 46  
 
 Question 103 
We appreciate Ukraine's commitment to phase- out subsidies contingent upon the use of 
domestic over imported goods by year end 2008.   
We seek a commitment from the Ukraine upon acc ession to eliminate existing subsidies and not 
to develop any new prohibited subsidies under Ar ticle 3.1(a) and 3.1(b) of the SCM Agreement 
and an understanding that all subsidy programs will be subject to the SCM Agreement within 
the WTO disciplines. 
Answer:
 
[From the date of accession Ukrain e will not maintain subsidies, including export subsidies which 
meet the definition of a prohibited subsidy, with in the meaning of Article 3 of the Agreement on 
Subsidies and Countervailing Measures, [excep t for subsidies to automotive industry until 
31 December 2008] and that it will not introduce such prohibited subsidies in the future, The Working 
Party took note of this commitment.] 
Question 104 
Paragraph 151:  As the local content requireme nt was removed from the old Automobile Law, 
we do not understand why Ukraine states that there is a TRIM.  Please clarify further.  
Answer:  
We recognize a TRIM in the new Automobile law.   The paragraphs 151 a nd 152 would be amended 
accordingly. 
Question 105 
Contradictory information is included in par agraph 151, which states that the Law "On the 
State Budget of Ukraine for 2004" suspended the VAT privileges for domestically-produced 
automotive vehicles in 2004.  At the same time, WT/ACC/UKR/119 (page 7) explains that this VAT exemption has not been suspended for en terprises with an investment programme 
approved by the Cabinet of Ministers.  Please amend as appropriate. 
Answer: 
 
Indeed, the Law "On the State Budget of Ukra ine for 2004" suspended the VAT privileges for 
domestically-produced motor vehicles in 2004, except for those enterprises th at had an investment 
programme approved by the Cabinet of Ministers and investments done before 1 January 2004.  
Ukraine presented this information not only in WT/ACC/UKR/119, but also in WT/ACC/UKR/116 (draft notification on industrial subsidies). We are ready to propose the Secretariat the relevant 
corrections to the text of the paragraph 151. 
Question 106 Paragraphs 152-156:  Concerning reference to a th ree year transitional period for the Law "On 
Rates of Excise Duty on Motor Vehicles", we note  that the purpose of the transitional periods 
under Articles 28 and 29 was to provide Members th e opportunity to bring their programs into 
compliance at the time the WTO Subsidies Agr eement originally came into force or shortly 
there after.   It is our belief that prospectiv e members should use the time during the accession  WT/ACC/UKR/125 
 Page 47 
 
 
 process as an opportunity to phase out all pr ohibited subsidies upon accession, and that 
additional transitional periods are not necessary or warranted. 
We request that Ukraine revise its commitment to bring its support of its automotive industry 
into compliance with the WTO provisions.  Specifi cally, we seek confirmation that the Ukraine 
will eliminate, upon accession, any incentives that meet the criteria set forth in Article 3 of the 
SCM Agreement. 
Answer:  
The elimination of preferences to automakers in  the course of Ukraine's accession to WTO will 
seriously damage investors, including foreign on es, that had invested in Ukrainian automobile 
building industry.  This will signify a viola tion of the pledged guarantees with respect to 
unchangeability of investment conditions during th e indicated period (till 31 December 2008) which 
runs counter to international standards of forei gn investors rights protection.  This violation of 
international principles of foreign investment s protection will significantly worsen Ukraine's 
reputation in the eyes of the whole world and w ill bring about foreign investments outflow from 
Ukraine's economy.  Such a development will cause ec onomic decline in Ukraine, which is in no way 
consistent with GATT/WTO principles. 
Question 107 
The commitment paragraph should also address Ukraine's transparency obligations under the 
Agreement. 
Answer:  
We believe that commitments with respect to ensu ring transparency and provision of notifications 
both under this Agreement and under other WTO agre ements are fully covere d in Paragraphs 299 and 
300 of the Working Party Report. 
Question 108 
Paragraph 152: Please clarify whether the exci se tax privileges expire in 2007 or 2008, as 
requested in relation to paragraph 91. 
Answer:  
The excise tax privileges expire in 2007.  As far as in paragraph 91 is dealing with both excise taxes 
and VAT (latest expire in 2008) we proposed that va riant of the text.  But we are ready to propose 
more detailed amendments: 
[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.] WT/ACC/UKR/125 
Page 48  
 
 Question 109 
Paragraph 156:  We take note of Ukraine's inte ntion to request a three year transitional period 
in relation to its discriminatory measures in the field of automobiles under the Agreement on 
Subsidies and Countervailing Measures.  We will take a position at the appropriate moment a priori, however, granting any such period would be difficult. 
Answer: 
 
We take note of this comment. 
Question 110 
The information included in this section does not cover fertilizers. We would appreciate to have 
more detailed information concerning the following legal acts of Ukraine: the Resolution of the 
Cabinet of Ministers "On Approval of the Order (Procedure) for use of the State Budget, that is 
provided for partial compensation of the price of  the domestically produced mineral fertilisers" 
No. 13, dated 14 January 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 (WT/ACC/SPEC/UKR/5/Rev.1, Table 2). 
Can Ukraine confirm that the provisions of the above mentioned legislation are in compliance 
with WTO Agreement on Subsidies and Count ervailing measures and would not nullify or 
impair tariff concessions established under GA TT Article II applicable from the date of 
Ukraine's accession to WTO. 
Answer:
 
The mentioned legal acts were in force during a comparatively short period of time (January – 
July 2004), and both have lapsed.  Because of the interim character of these measures and their very 
short duration they were not included in th e section of the Draft Working Party Report. 
If there is still interest in further details about th ese past measures, Ukraine is  prepared to provide an 
English text of the relevant acts. 
- Technical barriers to trade Question 111 We would be interested in a update on the additi onal legislation contemplated, to ensure that all 
mandatory requirements applied to  imports meet WTO requirements  prior to accession, and to 
see how the concerns we have raised are addressed. 
Answer:
 
[Ukraine commits to be in full conformity with the substantive provisions including procedural and 
transparency requirements of the WTO TB T Agreement from the date of accession. 
Ukraine intends to bring all existing technical regul ations (mandatory requirements) in line with the 
TBT Agreement.  This will be implemented throug h a program to revision of all existing technical 
regulations and elimination of those, which exceeds international requirements and cannot be justified 
under Article 2.4 of the TBT Agreement.  In additi on, technical regulations will be revised to assess  WT/ACC/UKR/125 
 Page 49 
 
 
 whether the circumstances or the objectives giving ri se to their adoption no longer exist or if the 
changed circumstances or objectives can be addressed in a less trade-restrictive manner.  Technical regulations that do not comply with Article 3 of th e TBT Agreement will also be eliminated.  Ukraine 
intends to implement this program over a period of X years.] 
Question 112 
These concerns have included how Ukraine will r ecognize as "equivalent" technical regulations 
of other WTO members, non-discrimination in the process of developing these regulations and 
standards, and transparency, 
Answer: 
 
Effective law, which regulates the development and enforcement of conformity assessment standards, 
technical regulations and procedures, is at present being amended and consolid ated in a draft Law of 
Ukraine "On Conformity Assessment Standards, Technical Regulations and Procedures".  The new 
draft Law will be in full compliance with the requirements of the TBT Agreement, including 
provisions on official recognition of technical re gulations of other WTO members, transparency 
(notification) and non-discrimination in the pro cess of developing the technical regulations and 
standards. 
One area where we will require additional informati on concerns technical regulations imposed by the 
Ministry of Agriculture.  
Question 113 
Ukraine is imposing technical regulations on imported fish products, specifically government-
mandated shelf-life standards.  However, Ukra ine has not previously informed the Working 
Party of such technical regulations or provided the regulations to the Working Party for review.    
Answer:  
There are no technical regulations applying to fish products in Ukraine while products shelf life norms 
are stipulated in the national standards. 
In accordance with Article 16 of the Law of Ukrain e On Quality and Safety of Food Products and 
Food Raw Materials, food products imported into Ukra ine is subject to verification, examination and 
permitting procedures, sanitary and epidemiological st andards, regulations being identical to those 
applying to similar domestically manufactured products. In other words, shelf life must be the same for both imported and domestically manufactured products. 
For the time being, the best-before period as set by a manufacturer is established for imported 
products provided that such terms are confir med by a conclusion of the state sanitary and 
epidemiological examination. 
The State Authorities of the Executive power ar e endeavouring towards harmonization of fish 
products shelf life and best-before peri ods with international requirements. 
Question 114 
We also understand that new restrictions exist on th e port of entry for fish products.  Similarly, 
no regulations have been submitted to the Working Party for review.  WT/ACC/UKR/125 
Page 50  
 
 We request that this section be revised to include a description of these and any other 
restrictions imposed on the import of food and agricultural products.   
What restrictions exist regarding the port of en try for fish products. Are similar restrictions 
imposed on other food and agricultural products.  
Answer:
 
No restrictions have been introduced in regard to  the port of entry of fish products in Ukraine. 
The importation into Ukraine of food and agricultural produce is regulated by Veterinary 
Requirements to Importation into Ukraine of State Veterinary Control and Oversight Objects.  
Question 115 
Please outline and provide a copy of any technical regulations imposed on food and agricultural 
products (i.e., government-mandated shelf-life sta ndards).  Are these measures equally imposed 
on domestic and imported product? 
Answer:  
The best-before period as set by a manufacturer is established for imported products provided that 
such terms are confirmed by a conclusion of the st ate sanitary and epidemiological examination, while 
for domestically manufactured products the best-befor e periods are specified in relevant standards. 
The State Authorities of the Executive power ar e endeavouring towards harmonization of fish 
products shelf life and best-before peri ods with international requirements. 
Question 116 
We seek a commitment from Ukraine that it will be in full conformity with the obligations of the 
WTO TBT Agreement from the date of accession. 
Answer:  
[Ukraine commits to be in full conformity with the substantive provisions including procedural and 
transparency requirements of the WTO TB T Agreement from the date of accession. 
Ukraine intends to bring all existing technical regul ations (mandatory requirements) in line with the 
TBT Agreement.  This will be implemented throug h a program to revision of all existing technical 
regulations and elimination of those, which exceeds international requirements and cannot be justified 
under Article 2.4 of the TBT Agreement.  In additi on, technical regulations will be revised to assess 
whether the circumstances or the objectives giving ri se to their adoption no longer exist or if the 
changed circumstances or objectives can be addressed in a less trade-restrictive manner.  Technical regulations that do not comply with Article 3 of th e TBT Agreement will also be eliminated.  Ukraine 
intends to implement this program over a period of X years.] 
The work program has been prepared and submitted to the Ministries for approval. 
Question 117 
Paragraphs 169 -170:  In paragraph 169, Ukraine st ates that it will ask for a transitional period 
for the implementation of the TBT Agreement to complete alignment of technical regulations  WT/ACC/UKR/125 
 Page 51 
 
 
 and standards. In paragraph 170, however, Ukraine states that it will not need any transitional 
arrangements.  Please clarify.  Please also subm it an Action Plan to achieve full compliance as 
soon as possible.  We will take a position on Ukraine's request once a ll necessary material has 
been received and reviewed. 
Answer:  
Ukraine intends to bring all existing technical regul ations (mandatory requirements) in line with the 
TBT Agreement.  This will be implemented throug h a program to revision of all existing technical 
regulations and elimination of those, which exceeds international requirements and cannot be justified 
under Article 2.4 of the TBT Agreement.  In additi on, technical regulations will be revised to assess 
whether the circumstances or the objectives giving ri se to their adoption no longer exist or if the 
changed circumstances or objectives can be addressed in a less trade-restrictive manner.  Technical 
regulations that do not comply with Article 3 of th e TBT Agreement will also be eliminated.  Ukraine 
intends to implement this program over a period of X years. 
The work program has been prepared and submitted to the Ministries for approval. 
Ukraine commits itself to be in full conformity with all the substantive provisions of the TBT 
Agreement by the time of its accession, except for that part of its work program that may by that time 
not yet be fully implemented, but that  would be  implemented within the agreed period. Ukraine 
observes that paragraph 170 of the Draft Report, wh ich includes a text of commitments, has remained 
with square brackets. 
Question 118 
Paragraph 160: Ukraine intends to revise the list of low-risk goods subject to mandatory 
certification in 2004. Which are the products conc erned? What is the timetable for reducing the 
list of goods subject to certification from now on? 
Answer:  
As of today, the List of Products Subject to Manda tory Certification is being revised, and by the end 
of 2004 it is planned to exclude the following fro m it: three sections (12. Engines of Tractors and 
Agricultural Machines, 15. Electric Machines, 19. Ci ne and Photographic Equipment) and also almost 
20 separate types of products from other sections  with a low level of risk for consumers. 
- Sanitary and phytosanitary measures 
Question 119 We would like additional information on the speci fic aspects of this reform that Ukraine feels 
will require extra time to implement.  
We would prefer a commitment for WTO consistency in this area upon accession. Answer:
 
The work program has been prepared and submitted to the Ministries for approval. 
By the next Working Party meeting Ukraine will submit an Action Plan to achieve full compliance 
with the SPS Agreement.  Ukraine takes note. WT/ACC/UKR/125 
Page 52  
 
 Question 120 
Paragraphs 172, 177,178, 179: these paragraphs  mention the efforts of Ukraine to amend 
several laws in order to bring its SPS provi sions in line with WTO requirements.  Could 
Ukraine provide an English translation of the dra ft laws on veterinary medicine, on safety and 
quality of food products, and on plant quarantine? 
Answer:
 
The Laws are being drafted and the internal pro cedures are underway. After that, Ukraine will provide 
the English texts of these Draft Laws.  
Question 121 
Paragraph 174:  Since hygiene certificates are required upon importation, we would welcome a 
list of the products, which are subject to this requirement.  
Answer:  
Ukraine will provide an English translation of the list by the next Working Party meeting. 
Question 122 
Paragraph 180. We welcome Ukraine's commit ment to establish a single SPS Enquiry and 
Notification Point prior to the date of its accession to the WTO.  We would be interested in more 
detailed information on the preparations and the estimated timing. 
Answer:  
The new legal framework would call for the estab lishment of a single SPS Enquiry and Notification 
Point, to be located at the Ministry of Economy and European Integration.  A draft Cabinet of Ministers Resolution has been prepared to estab lish the SPS Enquiry and Notification Point and the 
internal procedures are underway for submitting it to the CMU. 
Question 123 
Paragraph 181:  Ukraine states that it will seek  transitional arrangements to achieve full 
compliance with the SPS Agreement.  Please submit  an Action Plan to achieve full compliance 
as soon as possible.  We will take a position on  Ukraine's request once all necessary material has 
been received and reviewed. 
Answer:
 
The work program has been prepared and submitted to the Ministries for approval. 
By the next Working Party meeting Ukraine will submit an Action Plan to achieve full compliance 
with the SPS Agreement. 
Question 124 
There is no reason for a delay in the full implem entation of the SPS Agreement by Ukraine.  
Moreover, the fact that:  WT/ACC/UKR/125 
 Page 53 
 
 
 - Ukraine will implement the TBT Agreement  upon accession; 
- developing WTO members –including LDCs- wi th far less resources than Ukraine do 
apply without any exception the SPS Agreement; and  
- that the transition period proposed by  Ukraine could endanger the market access 
concessions negotiated so far, a transition period is not acceptable. 
Furthermore, as regards procedure, a transition  period was not raised by Ukraine before the 
decision was taken by members of the Working Pa rty to agree to start drafting this Report.  
Taken into account all this, and the fact that Uk raine seems to face problems in complying with 
the SPS Agreement, accession should only take pl ace once Ukraine is in a position to fulfil its 
obligations as other members. 
Answer:  
Ukraine commits itself to be in full conformity with all the substantive provisions of the SPS 
Agreement by the time of its accession except for that pa rt of its action program that may by that time 
not yet be fully implemented but that  woul d be implemented within the agreed period. 
The work program has been prepared and submitted to the Ministries for approval. 
By the next Working Party meeting Ukraine will submit an Action Plan to achieve full compliance 
with the SPS Agreement. 
- Trade-related investment measures 
Question 125 We would prefer a commitment for WTO consistency in this area upon accession. 
Answer:
 
[From the date of accession, Ukraine will apply its in vestment 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 
[the exception of automobiles until 31 December  2008.] The Working Party took note of this 
commitment]. 
Question 126 We will take a position on Ukraine's request for a transitional period for TRIMs at the 
appropriate moment; a priori, however, gran ting any such period would be difficult. 
Answer: 
 
We take note of this comment and observe that the deviations by Ukraine from the full application of 
the TRIMs Agreement will be limite d after accession to the provisions of the law of March 2004 and 
therefore, be small in scope and short in duration (2008). 
Question 127 
A commitment paragraph needs to be added to this section. WT/ACC/UKR/125 
Page 54  
 
 Answer:
 
[From the date of accession Ukraine will apply its in vestment 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 WT O Members and to domestically produced goods 
[except for automobiles until 31 December 2008.]  The Working Party took note of this commitment]. 
- State-trading entities Question 128 We would appreciate further information on the activities of Khlib Ukrajiny and the other un-
privatized state-owned enterprises operating in the agricultural sector.  
Answer:
 
Grain and grain products are the basic products that are exported by the Company. 
The SJSC "Khlib Ukrajiny" was established in orde r to satify needs of the population, organizations 
and enterprises of any form of ownership for br ead grain and fodder grain, products resulting from 
their processing, non-grain raw materials, elite an d sort seeds, to render services concerned with 
storage, processing and sale of agricultrual produts,  and to receive profits through engagement into 
entrepreneurial activities.  
 The SJSC "Khlib Ukrajiny" was established in the fo rm of an open joint stock  company pursuant to 
Resolution No. 1000 of the Cabinet of Minist ers of Ukraine, dated 22 August 1996, "On the 
Establishment of the State Joint Stock Company "Khlib Ukrajiny". 
The Charter for the State Joint Stock Company "Khlib Ukrajiny" was approved by Resolution 
No. 1375 of the Cabinet of Ministers of Ukraine, dated 12 November 1996. 
The main activities of enterprises within the SJSC "K hlib Ukrajiny" are concerned with procurement, 
sale (on domestic and external markets), storage and processing of grain.  
If loan-rate (secured) procurements of grain are carri ed out for bank credit funds, the State refunds out 
of the budget the amount of expenses concerned with pa yments of interest for the use of bank credits 
in the amount that is determined by the Gove rnment.  The Company has no other privileges.  
In determining the quantity of imports/exports, th e Company takes into acc ount the supply/price 
situation in the country, the internationa l situation and commercial considerations. 
The SJSC "Khlib Ukrainy" determines its expor t prices with respect to prices existing on other 
markets. 
The Company negotiates on its own the conclusion of long-term contracts.  Here below the brief description of the structure of the market. 
- The grain market in Ukraine
 
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:   WT/ACC/UKR/125 
 Page 55 
 
 
 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 
The main indicators of production and commercial ac tivities of the SJSC "Khlib Ukrajiny" for nine 
months of 2004 
No. Name of the indicator 9 months of 2004 9 months of 2003 
1 Production, thou. 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 
 
Question 129 
We reserve our position on other firms to be identified as state-trading enterprises.  
Paragraph 186:  could updated information be pr ovided on the share of state-owned enterprises 
in the total output of Ukraine? 
Answer:  
For the first half of the 2004, the consolidated index of the specific share of public sector in the 
economy of Ukraine was 22.9 per cent. 
- Free zones, special economic areas 
Question 130 Paragraph 196:   We note that the under Resolution No. 1199 of July 1999 (on investing in a  
Foreign Economic Zone territory or priority de velopment areas), Aan investor could, in the 
course of an investment project, give preferen ce to products (works and services) of Ukraine 
origin.  We also note that the Ukraine states  the provision is a recommendation and has never 
been implemented. Under Article 3.1(b) of the SCM Agreement, subsidies contingent upon the use of domestic over imported goods, are deemed to be prohibited.   
Could we have information on the changes contemplated in Resolution No. 1199?   WT/ACC/UKR/125 
Page 56  
 
 Answer:
 
The language dealing with preferen ce to products of Ukrainian orig in will be eliminated from the 
Standard Contract. 
Question 131 
We request that the Ukraine commit to eliminating, upon accession, any requirement or 
recommendation to use domestic over imported goods under this program. 
Answer:  
Please see the answer immediately above and Ukrain e's draft commitments on Subsidies and TRIMs. 
Question 132 
Can the Ukraine please provide an estimated timeline of when the amendments to bring the 
language of Resolution No. 1199 into complian ce will be submitted for review by the Members? 
Answer:  
The Resolution amending the Standard Contract in SEZ has been drafted. Now, the ministries work 
on it in order to submit it to the CMU for considera tion. After the Resolution is adopted by the CMU, 
its text will be submitted to the WTO Secretariat. 
Question 133 It is our understanding that legislation to a ddress the WTO aspects of incentives for the SEZs 
and Priority Areas is in development.   
Answer:
 
The Draft Law of Ukraine "On Amendment of Some  Laws of Ukraine On Creation and Functioning 
of Special (Free) Economic Zones and Application of  Special Regimes of Inv estment Activity in the 
Territories of Priority Development" includes provi sions that establish the procedure for taxation of 
goods brought from the territory of special economic zone into the customs territory of Ukraine, 
including special economic zones " Аzov", "Donets" and "Zakarpattya". 
In the current moment, Cabinet of Ministers of Ukra ine examines this Draft Law, which, in particular, 
contains a rule, whereby transactions involving impo rts of goods from the territory of a FEZ into the 
customs territory of Ukraine shall be carried out  under an import regime (with imposition of the 
import duty). 
The current legislation of Ukraine provides for exemption from Value Added Tax (VAT) and import 
duty (except for excisable goods and goods of CN FE A Groups 1-24), if not for the whole life of SEZ, 
then for at least five years. 
The Draft Law of Ukraine "On Amendment of Some  Laws of Ukraine On Creation and Functioning 
of Special (Free) Economic Zones and Application of  Special Regimes of Inv estment Activity in the 
Territories of Priority Development" stipulates that aimed at the implementation of investment projects, the operations on bringing in (sending)  and equipping shall be exempt from VAT in the 
course of bringing goods, raw materials, articles, equipment into the customs territory of SEZ from  WT/ACC/UKR/125 
 Page 57 
 
 
 outside the boundaries of the customs territory of Ukra ine, but for no longer than two year (except for 
excisable goods), and from import duty – but for no longer than five years. 
Question 134 
Paragraph 198:  Please clarify when the WTO inconsistencies will be removed.  We would 
appreciate receiving the draft legislation as soon as possible.  
Answer:  
Cabinet of Ministers of Ukraine examines the Draf t Law of Ukraine „On Introduction of Changes to 
Some Laws of Ukraine On Creation and Functi oning of Special (Free) Economic Zones and 
Application of Special Regimes of Investment Acti vity in the Territories of Priority Development", 
which, in particular, contains a rule, whereb y transactions involving imports of goods from the 
territory of a FEZ into the customs territory of Uk raine shall be carried out under an import regime 
(with imposition of the import duty). 
Question 135 
We suggest the following changes to paragraph 202: 
202.    The representative of Ukraine confir med that the free zones or free economic 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 from tariffs and 
certain taxes would be subject to normal customs formalities when entering the rest of Ukraine 
including the application of tariffs and tax es.  The Working Party took note of these 
commitments.] 
Answer:  
Ukraine takes note. 
- Government procurement 
Question 136 We thank Ukraine for its responses and its new information on how Ukraine arranges for 
government procurement.   
We look forward to the earliest possible initiati on of negotiations for Ukraine's membership in 
the Agreement. 
We note the commitment language on joining the Government Procurement. 
Paragraphs 206-209:  We note that Ukraine ha s been making efforts to improve the legal 
framework towards enhancing the transparency  of government procurement, and towards 
harmonizing tender process and procedures in a ccordance with international practices.  We 
encourage Ukraine to continue in its ongoing efforts to make its procurement system more 
transparent and open to competition.  WT/ACC/UKR/125 
Page 58  
 
 Paragraph 212:  We also note with satisfaction  that Ukraine will become observer to the GPA at 
the time of accession to the WTO and will start negotiations on the accession to the GPA.  We can offer our help to improve Ukrain e's understanding of the GPA Agreement. 
Answer:
 
Ukraine takes note and would be thankful for such kind of technical assistance. 
Question 137 As regards your answer to Question 231, we would like to recommend the elaboration of 
Article 6 of the public procurement Law, whic h concerns the regime of support to domestic 
producers by granting price prefer ences vis-à-vis foreign suppliers.  
Answer:
 
In the process of joining to the GPA Ukraine will continue to harmonize tender process and 
procedures in accordance with international practices and provisions of the GPA. 
- Trade in civil aircraft 
Question 138 Ukraine has stated its commitment to join th e Agreement on Trade in Civil Aircraft.  We 
request that, in the appropriate part of the Wo rking Party Report, Ukraine include information 
on their commitment to join the Info rmation Technology Agreement as well. 
Answer: 
 
The Ukrainian party is prepared to insert into the appropriate Section of the Working Party Report its 
commitments with respect to accession to the IT Agreement. 
- Transit 
Question 139 
Paragraph 214: When will the text of Resoluti on of the Cabinet of Ministers No. 938 dated 
12 August 1996 (with changes and amendments) be provided to the Working Party? 
Answer:  
We submitted the text of the abovementi oned Resolution to the WTO Secretariat. 
Question 140 Paragraph 216:  Please reformulate the sentence "He noted… to impose a 'convenient route'". 
We do not agree that a government always knows what is the most convenient route for the 
economic operator in a specific case.  It appears that the economic operator is better placed to 
decide what is most convenient. 
Answer: 
 
Ukraine has designated such routes  for specific types of goods to prevent circumvention of control on 
excisable goods. It does occasionally happen that  economic operators decide what is most  WT/ACC/UKR/125 
 Page 59 
 
 
 "convenient" for them, so as to be in a better position to circumvent the law and obtain illegal 
economic benefits. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 141 We find this part of the report much improved, and incorporating much of the information 
developed from the last meeting.  
We are reviewing the new amending legislation ju st provided to the Secretariat, and we will be 
reviewing areas of Ukraine's basic laws, such as  the Civil Code, that have relevance to TRIPS 
obligations, e.g. the protection of test data.  A fter we have completed this review, we will have 
additional comments. 
In the area of geographical indications/appellations of origin however, the text remains 
problematic. In order that our views are reflected , we have the following additional text for the 
report: 
- at the end of paragraph 238, add the following: 
"One member of the Working Party noted that th e Law of Ukraine does not afford national or 
MFN treatment to foreign GIs, by requiring a bilateral agreement to be concluded between 
Ukraine and the foreign country where the GI is located, for each separate foreign GI for which 
protection is sought in Ukraine, while Ukrainia n GIs benefit from a registration system through 
which they receive protection.  This is in clear violation of Articles 3 and 4 of TRIPS, concerning national treatment and MFN, as well as Article 2 of the Paris Convention." 
Answer: 
 
Pursuant to paragraph 2 of Article 8, the Law of  Ukraine "On Protection of Rights to Indication of 
Origin of Goods", indication relate d to a geographical location in a foreign state would not be granted 
legal protection unless:  a) the indication was protected  in the foreign state concerned; and b) Ukraine 
had concluded a mutual agreement with the foreign state concerning the protection of this particular 
geographical indication.   
For today, the Law of Ukraine "On the Protection of Rights to Trademarks, Geographic Indications 
and Trade Names" is drafted. This Draft Law cont ains a paragraph clarifying the above mentioned 
provision, which reads as follows:  "Geographical indication related to a geographical 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 Ukra ine did not conclude a re levant agreement with a 
foreign state concerning the mutual protection of rights to this type of geographical indication". 
Therefore, the above provision is fully compliant wi th Articles 3 and 4 o the TRIPS, and also – with 
Article 2 of the Paris Convention. 
Question 142 
- at the end of paragraph 247, add the following: 
"One member of the Working Party noted that the Law of Ukraine "On Protection of Rights to 
Indications of Origin of Goods" does not afford national or MFN treatment to foreign GIs.  The 
requirement of the conclusion of separate bila teral agreements concerning each GI for which 
protection is sought is treatment unequal to that  afforded to Ukrainian GIs, which benefit from WT/ACC/UKR/125 
Page 60  
 
 a system of registration set up for their protection in Ukraine.  This is clearly in violation of 
Articles 3 & 4 of TRIPS, as well as Article 2 of the Paris Convention." 
Answer: 
 
Pursuant to paragraph 2 of Article 8, the Law of  Ukraine "On Protection of Rights to Indication of 
Origin of Goods", indication relate d to a geographical location in a foreign state would not be granted 
legal protection unless: a) the indication was protected in the foreign state concerned; and b) Ukraine 
had concluded a mutual agreement with the foreign state concerning the protection of this particular 
geographical indication.   
For today, the Law of Ukraine "On the Protection of Rights to Trademarks, Geographic Indications 
and Trade Names" is drafted. This Draft Law cont ains a paragraph clarifying the above mentioned 
provision, which reads as follows: "Geographical i ndication related to a ge ographical 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 Ukra ine did not conclude a re levant agreement with a 
foreign state concerning the mutual protection of rights to this type of geographical indication". 
Therefore, the above provision is fully compliant wi th Articles 3 and 4 o the TRIPS, and also – with 
Article 2 of the Paris Convention. 
Question 143 
- at the end of paragraph 246, add the following: 
"One member of the Working Party noted that th e Ukrainian law does not afford the rights to 
trademark owners required by Article 16.1 of TR IPS, as the GOU notes 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 use 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  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 likely to lead to confusion (Article 6, item 3 of the Law on 
Marks)."  This would deny the trademark owne r its TRIPS Article 16.1 rights, by forcing the 
earlier trademark to co-exist with a later establis hed 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." 
In paragraph 246 of the draft Working Part y Report, WT/ACC/SPEC/UKR/5/Rev.1, Ukraine 
states that "the exclusive right of a trademark ho lder to prohibit the use by third persons of the 
registered mark without the holder's consent did not extend to the use 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 regis tered 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 likely to lead to confusion 
(Article 6, item 3 of the Law on Marks)."  
How does this ensure the rights of trademark owners conferred under Article 16.1 of TRIPS? 
Must an earlier trademark be forced to co-exist with a later established GI that would be likely 
to cause confusion with the earlier trademark? Would an earlier trademark be invalidated or 
cancelled due to a later in time GI?  WT/ACC/UKR/125 
 Page 61 
 
 
 Answer:  
Legal protections of an applied-for name of a place of origin or an applied-for geographical indication 
of origin may not be refused on grounds that in Uk raine there has been regist ered a trademark, which 
consists only of such indication or contains therein the applied-for indication as an element (point 3 of 
Article 8 of the Law of Ukraine "On Protection of  Rights to Indication of Origin of Goods").  
In addition, pursuant to point 3 of Article 6 of  the Law of Ukraine "On Protection of Rights to 
Trademarks and Services", there cannot be regist ered trademarks which are identical, and hence 
cannot be distinguished from the qualified indicati on of origin of goods (including alcohol and 
alcoholic beverages), which are protected as stipul ated by the Law of Ukraine "On Protection of 
Rights to Indication of Origin of Goods". These indi cations can only be the unprotected elements of 
the trademarks belonging to persons who have th e right to use the above mentioned indications. 
Question 144 
In paragraph 247 of the draft Working Part y Report, WT/ACC/SPEC/UKR/5/Rev.1, Ukraine 
states that "an indication related to a geographical location in a foreign state would not be granted protection unless the indication was prot ected in the foreign state concerned, and 
Ukraine had concluded a mutual agreement with th e foreign state concerning the protection of 
this particular geographical indication." 
How is the requirement of a bilateral agreemen t in order to protect each individual GI 
affording National Treatment and Most-Favoured Nation status to foreign GI owners, as 
required under TRIPS and the GATT 1994, particul arly given the fact that Ukrainian GIs are 
protected under an application system outlined earlier in this report? 
Answer: 
 
Pursuant to paragraph 2 of Article 8, the Law of  Ukraine "On Protection of Rights to Indication of 
Origin of Goods", indication relate d to a geographical location in a foreign state would not be granted 
legal protection unless:  a) the indication was protected  in the foreign state concerned; and b) Ukraine 
had concluded a mutual agreement with the foreign state concerning the protection of this particular 
geographical indication.   
For today, the Law of Ukraine "On the Protection of Rights to Trademarks, Geographic Indications 
and Trade Names" is drafted. This Draft Law cont ains a paragraph clarifying the above mentioned 
provision, which reads as follows: "Geographical i ndication related to a ge ographical 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 Ukra ine did not conclude a re levant agreement with a 
foreign state concerning the mutual protection of rights to this type of geographical indication". 
Therefore, the above provision is fully compliant wi th Articles 3 and 4 o the TRIPS, and also – with 
Article 2 of the Paris Convention. 
Question 145 
According to paragraph 257, on page 85 and following, Article 507 of the Civil Code and the 
Law "On protection Against Unfair Competition"  ensure that test data and other data are 
protected against unfair commercial use.  We woul d like to ask the representative of Ukraine to 
confirm in the report, that Ukraine will, in  compliance with Article 39.3 of the TRIPS 
Agreement, enact specific legislative provi sions, prior to accession, that require the 
pharmaceutical registration authorities to provide a period of protection against unfair commercial use of at least six years for test da ta submitted from the time the first marketing WT/ACC/UKR/125 
Page 62  
 
 authorization is granted for a specific product utilizing 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 approval.  During this 
period any subsequent applicant for market ing approval shall not be granted market 
authorization unless he submits his own data to the same extent as required from the first 
applicant for obtaining the marketing authorizat ion in Ukraine for the particular chemical 
entity.  Furthermore, Ukraine shall guarantee, during this period, the, protection of undisclosed information, including commerci al secrets, except where necessary to protect the public or 
unless steps were taken to ensure that the data are protected against unfair commercial use. The 
Working Party takes note of these commitments. 
Answer:
 
As indicated in the document WT/ACC/SPEC/UKR/5 /Rev.1, data submitted for registration with 
government authorities are to be regarded under Ukrainian law as confidential information and are 
protected under Article 507 of the Civil Code of  Ukraine as a commercial secret in accordance with 
Article 39.3 of the TRIPS Agreement.  The term of pr otection for such data is indicated in Article 508 
of the Civil Code of Ukraine and is restricted by a period, during which the entirety of features of a commercial secret as are defined in Article 505 of this Code exist.  This term of protection for the data 
against disclosure entrenched in Ukrainian law is not inconsistent with th e provisions of the TRIPS 
Agreement. 
Question 146 
Paragraph 260: We would like to know whether the confiscation of equipment is always used as 
a sanction in the case of production of pirated products. 
Answer: 
 
Yes, the confiscation of equipment is always used  as a sanction in the case of production of pirated 
products in addition to the penalty or confinement. 
POLICIES AFFECTING TRADE IN SERVICES Question 147 Paragraph 282:  Will the draft Law allowing forei gn banks to set up branches in Ukraine be re-
submitted to Parliament? 
Answer:
 
Yes, the new Draft Law allowing foreign banks to set up branches in Ukraine is prepared and the 
internal procedures fore submitting this Dr aft Law to the Parliament are underway.  
Question 148 
Paragraphs 285–287: Are there any changes foreseen  on the limitations on foreign equity 
participation in Ukraine?  WT/ACC/UKR/125 
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 Answer:  
The Law of Ukraine "On Specifics of Priva tization of the Open Joint Stock Company 
UKRTELECOM" No.1869-III of 13 July 2000 has can celled the 49 per cent limitation on foreign 
equity participation in telecommunications. No changes on the limitations on foreign equity participation are foreseen in this sector in the future. 
The Law of Ukraine "On Amendment of the Law of  Ukraine "On Information Agencies" No.1379-IV 
of 11 December 2003 has raised the foreign equity pa rticipation from 30 per cent to 35 per cent.  No 
further reduction is envisaged in nearest future. 
Transparency 
Question 149 
We are very impressed with what we have hear d about Ukraine's transparency framework.   
We would like to see additional information on these measures. Paragraph 297:  Where can regulations and other le gal instruments that are not laws be found?  
Was any provision made for publication with sufficient time in advance of enactment to receive comments? 
Answer: 
 
The Decree of the President of Ukraine No. 503 of 10 June 1997, "On the Procedure for Official 
Promulgation of Normative Acts and their Entry into Force" provides that laws of Ukraine, other acts 
of the Supreme Rada of Ukraine, acts of the President of Ukraine and the Cabinet of Ministers of Ukraine shall be subject to promulgation in the state language, in official gazettes, not later than five 
days after their adoption pursuant to prescribed procedures. 
The official gazettes are the following:  "Ofitsiyni y Visnyk Ukrajiny" [Official Herald of Ukraine], 
the "Vidomosti Verkhovnoji Rady Ukrajiny" [Gaze tte of the Supreme Rada of Ukraine], the 
"Presydentskiy Visnyk Ukrajiny" newspaper [Gazet te of the President of Ukraine], the "Uriadoviy 
Visnyk Ukrajiny" [Gazette of the Government of  Ukraine] and the "Holos  Ukrajiny" newspaper  
[Voice of Ukraine]. 
Pursuant to the Decree No. 207 of the President of Ukraine, of 13 December 1996, the Ministry of 
Justice of Ukraine, together with the Chief State Association for Legal Info rmation and Promotion of 
Legal Education within the Ministry of Justice of Ukraine, issues, as from 1997, the information 
bulletin "Ofitsiyniy Visnyk Ukrajiny", in which the laws of Ukraine, orders and directives of the 
President of Ukraine, resolutions and orders of th e Cabinet of Ministers of Ukraine of a normative 
nature, acts of the Constitutional Court of Ukraine,  normative acts of the National Bank of Ukraine, 
international agreements and trea ties of Ukraine, which have ente red into force, normative acts of 
ministries and other central agencies of executive power  registered with the Ministry of Justice of 
Ukraine are published in the state language. 
The normative acts of the Supreme Rada of Ukraine a nd the President of Ukraine enter into force in 
ten days from the date of official promulgation thereof, unless otherwise provided by such acts, but 
not earlier than on the day of promulgation thereof in an official printed publication. 
The normative acts of the Cabinet of Ministers of Uk raine will enter into fo rce as of the date of 
enactment thereof, unless a later date for their entry into force is anticipated therein.  Acts of the WT/ACC/UKR/125 
Page 64  
 
 Cabinet of Ministers of Ukraine, which determine ri ghts and obligations of citizens, shall enter into 
force not earlier than the date of promulgati on thereof in official printed publications. 
If a law of Ukraine or some other act of the Supreme Rada of Ukraine is published in the 
"Presydentskiy Visnyk Ukrajiny" newspaper, the "Uriadoviy Kurier" newspaper or in the "Holos 
Ukrajiny" newspaper, prior to the publication th ereof in the Ofitsiyniy Visnyk Ukrajiny or the 
Vidomosti Verkhovnoji Rady Ukrajiny, it shall enter into force upon promulgation thereof in either 
the said newspapers, in which it was published earlier. 
If a Decree of the President of Ukraine and other normative acts are published in the "Presydentskiy 
Visnyk Ukrajiny" newspaper, the "Uriadoviy Ku rier" newspaper or in the "Holos Ukrajiny" 
newspaper, they shall enter into force upon publica tion thereof in that of the said newspapers, in 
which it was published earlier. 
Acts of the Supreme Rada of Ukraine, the Presid ent of Ukraine and the Cabinet of Ministers of 
Ukraine, which do not have general applicability or a normative nature, may not be published by 
decision of the respective authority.  Such acts and acts, which have restrictive notes, are officially 
published by sending them to government authorit ies and local self-government authorities unless 
some other date for their entry into forc e is prescribed by the issuing authority. 
Acts of the Supreme Rada of Ukra ine and the President of Ukraine on appointments to and dismissals 
from positions pursuant to law will enter into force as of the date of adoption thereof. 
It should be also noted that, in order to ensure uniform principles for identification of normative acts, 
state record-keeping, establishment of a database of  such acts and their maintenance in controlled 
status in Ukraine, and to ensure  accessibility and publicity of lega l information, the Uniform State 
Registry for Normative Acts, an automated system for collection, accumulation and processing of 
legislative acts, (hereinafter referred to as, the "S tate Registry") has been established pursuant to 
Decree No. 468 of the President of Ukraine, dated 27 June 1996, "On the Uniform State Registry for 
Normative Acts".  It is provided that effectiv e, published and not published laws of Ukraine, 
resolutions of the Supreme Rada of Ukraine, decrees and orders of the President of Ukraine, decrees, 
resolutions and orders of the Cabinet of Minister s of Ukraine, normative acts of ministries and other 
central agencies of executive power registered with the Ministry of Justice, normative acts of the 
National Bank of Ukraine, international treaties and agreements of Ukraine (including those with 
restrictive notes) shall be included into the St ate Registry.  Temporary normative acts with an 
effectiveness term of one year and more and with an  effectiveness term of less than one year, if they 
are subsequently prolonged, shall be subject to State registration. 
In order to ensure maintenance of the State Registry , the Ministry of Justice of Ukraine will receive 
full official acts with all addenda, adopted by the Su preme Rada of Ukraine, the President of Ukraine, 
the Cabinet of Ministers of Ukraine, the National Ba nk of Ukraine, ministries, other central agencies 
of executive power and bodies charged with commercial administration and control. 
Resolution No. 376 of the Cabinet of Ministers of Ukraine, dated 23 April 2001, approved Procedures 
for Maintenance of the State Registry fo r Normative Acts and their Enforcement. 
For reference:  Pursuant to Article 9 of the Law of Ukraine "On Pr inciples of State Regulatory Policies in the Area of 
Business Activities" (hereinafter referred to as,  the "Law"), each draft regulatory act shall be 
publicized in order to receive comments and propo sals thereon from natural persons and legal entities 
and their associations.   WT/ACC/UKR/125 
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 Pursuant to Paragraph 2 of Article 13 of the Law,  the notice ohn publication of a draft regulatory act 
in order to receive comments and proposals, the draft regulatory act and a respective analysis of 
regulatory impact shall be publicized through publ ication in printed mass media of a developer of 
such an act and, if there are no such printed ma ss media, in printed mass media designated by the 
developer of such an act, and/or through placement of  the draft regulatory act on the official web-page 
of the developer of the act in the Internet.  
All legislative and implementation normative acts that relate to issues of intellectual property, as well 
as information on measures to be undertaken in this area will be placed on the web-page of the State 
Department of Intellectual Property – www.sdip.gov.ua. 
 Question 150 We are looking for the following: - A commitment that all regulations and other normative acts or measures pertaining to 
or affecting trade in goods, services, or TRI PS are published promptly in a single official 
source, and that no such regulation or oth er normative act or measure becomes effective 
or be enforced prior to such publication; 
- A commitment to establish or designate an official journal or website, published or 
updated on a regular basis and readily ava ilable to WTO members, individuals and 
enterprises, dedicated to the publication of all regulations and other measures 
pertaining to or affecting trade in goo ds, services, and TRIPS prior to enactment; 
- A commitment to provide a reasonable period, i.e., no less than 30 days, for comment to 
the appropriate authorities before such me asures are implemented, except for those 
regulations and other measures involving na tional emergency or security, or for which 
the publication would impede law enforcement; and 
- A commitment 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, identified by appropriate tariff line and classification. 
We propose the following text: xx.  In response, the representative of Ukraine confirmed that from the date of accession all 
laws, regulations, decrees, judicial decisions and administrative rulings of general application 
related to trade would be published promptly in  a manner that fulfils WTO requirements.  As 
such, no law or regulation related to internatio nal trade would become ef fective prior to such 
publication in the Official Journal.  He further stated that all laws which were amended to 
comply with the WTO Agreements contained pr ovisions which require such publication.   
xx.    He further confirmed that upon accession Ukraine would post the contents of current and 
past editions of the Official Journal on the G overnment website and keep them current.  In 
addition, all regulations and other normative acts  or measures pertaining to or affecting trade 
in goods, services, or TRIPS would be published prompt ly in a single official source, and that no 
such regulation or other normative act or measur e would become effective or be enforced prior 
to such publication.   
xx.     He further confirmed that by 1 January 200X, Ukraine would establish or designate an 
official journal or website, published or update d on a regular basis and readily available to 
WTO members, individuals and enterprises, dedica ted to the publication of all regulations and 
other measures pertaining to or affecting trade in goods, services, and TRIPS prior to WT/ACC/UKR/125 
Page 66  
 
 enactment, and that Ukraine would provide a reas onable period, i.e., no less than 30 days, for 
comment to the appropriate authorities before su ch measures are implemented, except for those 
regulations and other measures involving nation al emergency or security, or for which the 
publication would impede law enforcement.  Th e publication of such regulations and other 
measures would, where appropriate or possible, in clude the effective date of these measures and 
list the products and services affected by the partic ular measure, identified by appropriate tariff 
line and classification.   The Working Party took note of these commitments. 
Answer:
 
Ukraine takes note. 
Question 151 
Paragraph 296 or 297 should be amended with addi tional information on the web site providing 
free access to effective normative acts in Uk rainian and English (www.welcometo.kiev.ua). 
Answer:  
Paragraphs 296 and 297 contain comp lete information regarding curre nt situation on the existing web 
sites providing free access to effective nor mative acts in Ukrainian and English. 
Within the framework of the informational activities,  Yaroslav the Wise Institute of legal information 
created and maintains the English langu age database www.welcometo.kiev.ua.  
This site offers English translations of Ukraine' s laws and draft laws on such issues as protection of 
intellectual property, customs procedures, standard ization and certification, export/import regulations, 
taxation peculiarities, foreign economic activity, gran t of investment incentives, trade facilitation, 
anti-dumping procedures, trade in agricultural pr oducts, services, rules governing subsidies on 
industrial products, competition policy, etc. The site  also provides access to summaries of laws and 
draft laws of Ukraine. These summaries set forth the major provisions of each law and draft law. 
The section "News" offers latest English translati ons of laws, draft laws, summaries and news from 
the Ukraine's legislative body pub lished in the bulletin "Parliament's Weekly". This bulletin highlights 
core issues in the work of the Ukraine's parliament. 
The section "Information about Parliament" outlines brief info about Ukraine's parliament, its 
committees and factions. There is available a glo ssary of specific terms and concepts used in 
legislation of Ukraine. All the materials are regularly updated. 
This database is supplied with easy in use intu itive search engine allowing carrying out quick search 
of documents on attributes or subjects. 
Trade Agreements 
Question 152 
Paragraph 301:  Please indicate whether the PC A provides for MFN or preferential treatment.  WT/ACC/UKR/125 
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 Answer:  
Pursuant to Paragraph 1 of Artic le 10 of the Partnership and Coope ration Agreement between Ukraine 
and the EU (the "PCA"), it is provided that "T he Parties shall accord to one another most-favored-
nation treatment according to Article I, paragraph 1 of the GATT". 
Clause 2 in Article 10 of the PCA provides that the provisions of Paragraph 1 of the said Article shall 
not apply to: 
- advantages granted with the aim of creating a customs union or a free-trade area or pursuant 
to the creation of such a union or area; 
- advantages granted to particular countries in accordance with the GATT and with other 
international arrangements in favour  of developing countries; and 
- advantages accorded to adjacent countries in  order to facilitate frontier traffic.  
Question 153 
Paragraph 302:  Further information on the prov isions of Ukraine's FTAs should be provided, 
e.g., extracted from WT/ACC/UKR/65 and WT/ACC/UKR/65/Add.1, covering inter alia , 
whether or not they provided for the elimination of duties and other charges on substantially all 
trade; any exceptions to zero duty on import s; any coverage for services, investment or 
government procurement; any coverage or side agreements or protocols on non-tariff issues, 
e.g., safeguards, technical barriers to trade, cust oms clearance, etc.; rules of origin; and any 
quantitative restrictions applied to the trade. 
Answer:  
Provisions contained in the articles of the free tr ade agreements signed by Ukraine with all CIS 
countries envisage the following: 
The Contracting Parties shall not impose customs du ties, taxes and charges having equivalent effect 
on export and/or import of products originating in the customs territory of either Contracting Party 
and designed for the customs territory of the other Contracting Party. 
At the same time, exemptions from the free trad e regime according to the agreed commodity 
description shall be executed by the separate instru ments (protocols) being the integral parts of the 
Agreements. 
Currently, there are exemptions fro m the free trade regime with the following CIS countries: Republic 
of Belarus, Russian Federation, Republic  of Moldova, Republic of Kazakhstan. 
Along with this, the Agreements state th at the Contracting Parties shall not: 
- directly or indirectly impose internal taxes a nd fees on products, covere d by this Agreement, 
exceeding the relevant taxes or fees levied  on similar domestically produced goods; 
- apply to the warehousing, reshipment, storage, transportation of products originating in the 
other Contracting Party, and to the payments a nd transfer of payments, rules other then those 
applied in similar circumstances with re spect to domestically produced goods; and 
- apply to imports or exports of  products, subject to this Agreement, any discriminatory 
measures, introduce quantitative restricti ons or measures equivalent to them. WT/ACC/UKR/125 
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 The Contracting Parties may impose quantitative or other special restrictions by mutual agreement 
between the Parties, but these restrictions should be  of exceptional nature and may apply only in cases 
provided for by the GATT Agreements. 
As regards the Rules of Determining the Country of Origin of Goods, all CIS countries are governed 
by the Rules of 30 November 2000, signed by all members of the Commonwealth of Independent 
States except for the Republic of Uzbekistan and Turkmenistan.  
In addition to the above, it should be mentioned that  articles of the Free Trade Agreements with the 
above countries contain no provisions regarding servi ces, investment or government procurement. 
Question 154 
Paragraph 303:  This section should be updated to reflect Ukraine's intentions now that Russia 
has indicated that it will soon cease applicatio n of the VAT on energy exports to the CIS. 
Paragraph 303: This paragraph needs to be  updated in light of recent developments. 
Answer:
 
We are going to propose to the Secretariat the am endments related to the following information: 
Article 9 of the Draft Law of Ukraine "On the State Budget of Ukraine for 2005" states that beginning 
on 1 January 2005 all operations of gas importation on the customs territory of Ukraine shall be 
exempt from VAT based on external contracts, signe d to fulfil international agreements of Ukraine 
notwithstanding the country of origin. 
VAT on import of other energy products (includi ng raw oil and condensate of nature gas) will 
constitute 20 per cent notwithstanding the country of origin according to the Article 6 of the Law of 
Ukraine "On VAT" No.168 of 3 March 1997. 
Question 155 Paragraph 304:  We appreciate Ukraine's effort to provide a comprehensive description of its 
preferential trade opportunities outside the b ilateral FTAs with other CIS members.   
Paragraph 306-7:  We request that Ukraine provi de more information on its association with 
Russia, Kazakhstan, and Belarus in the Single Ec onomic Space Agreement, and on its activities 
in this Agreement since sign ing it in September 2003.   
For example, we would appreciate information on any additional agreements or proposals 
developed within its framework, whether or not Ukraine has accepted them, to ensure the 
establishment of a common economic space, and a status report on actions taken to create it. 
Please indicate any actions Ukraine has taken as part of this Agreement to provide for 
preferential access to its market in goods or services, or agreements on trade among the 
members that provide for treatment in any way more favorable than that provided on an MFN 
basis. 
Answer:
 
On 19 September 2003 in the city of Yalta, during the Summit of the leaders of CIS countries the 
presidents of the Republic of Belarus, the Repub lic of Kazakhstan, the Russian Federation and 
Ukraine have signed an Agreement for Forma tion of the Common Economic Space, which was  WT/ACC/UKR/125 
 Page 69 
 
 
 ratified by the Verkhovna Rada of Ukraine pursuant to the Law of Ukraine No. 1683-IV of 
20 April 2004. 
According to the ratified reservations, Ukraine will pa rticipate in the formati on and functioning of the 
Common Economic Space within the framework co mplaint with the Constitution of Ukraine. 
Pursuant to the Statement by the Presidents of th e Republic of Belarus, the Republic of Kazakhstan, 
the Russian Federation and Ukraine of 19 September 2003, in order to implement the tasks set by the 
Agreement for formation of CES, dated by 19 Sept ember 2003, the mandate is extended for the high 
level Group created according to the Statement of the presidents of these countries of 23 February 2003. 
In order to ensure for the formation of the Co mmon Economic Space to be carried out in compliance 
with the arrangements reached w ithin the framework of the high level Group on the formation of CES 
and during the summits of leaders of the parties to the Agreement for formation of CES, dated by 
19 September 2003, 85 documents are to  be drafted till the end of 2004. 
Ukraine is to draft a quarter of the documents sc heduled for drafting in 2004 regarding cancellation of 
quantitative restrictions, trade remedies, export an d import customs duties, application of excise 
duties. 
On 15 September 2004, during the summit of leaders of CIS members - the Republic of Belarus, the 
Republic of Kazakhstan, the Russian Federation and Ukraine – a Statement was made by the 
presidents of the Republic of Belarus, the Repub lic of Kazakhstan, the Russian Federation and 
Ukraine, in which leaders of the countries have positively assessed the work conducted by the high 
level Group on the preparation of drafts of the international legal and other documents on the 
formation of CES.  They also approved the list of  29 international documents to be signed as the 
priority documents and completing the formation of free trade area. 
The high level Group is to prepare a set of docum ents till the end of 2004 on a simplified procedure 
for movement of natural persons across the internal borders of the CES members. 
Leaders of the states have approved a Decision, wh ich ensures a transition till 1 January 2005 to the 
single principles of levying VAT on the basis of the country of destination in a mutual trade in goods 
in full, without exemptions, including natural gas, oil, and including gas condensate.  
At the current moment, according to the arrangement s reached within the framework of the high level 
Group on CES formation and at the summits of leader s of the parties to the Agreement for formation 
of CES, with a view to provide for formation of  the Common Economic Space the parties to the CES 
have drafted the international le gal documents, including the prior ity documents, which are to be 
agreed and signed till 1 July 2005.  Among th em an Agreement on the Uniform Commodity 
Nomenclature in Foreign Economic Activities of the CES, an Agreement on the Cancellation of 
Quantitative Restrictions, an Agreement laying down uniform principles for regulating the activity of natural monopolies, Agreements for Simplificat ion of Procedures for Customs Clearance and 
Customs Control at Internal Borders of the St ate Members of the CES; Agreements on Uniform 
Conditions of Transit through Territories of the State Members of the CES; a Treaty on the 
Establishment of the Commission for Trade and Tari ffs; an Agreement entrenching the main (basic) 
principles for pursuit of competitive policies in th e State Members of the CES; an Agreement on 
Uniform Principles for Collection of Indirect Tax es in Mutual Trade of the State Members of the 
CES; an Agreement on the List of Main Macroec onomic Indicators;  an Agreement on the Mechanism 
of Control over Implementation of Measures aimed to Approximate Macroeconomic Indicators of the 
State Members of the CES; an Agreement on Investment Activities and Free Movement of Capital 
within the Territory of the State Members of the CES. WT/ACC/UKR/125 
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 Question 156 
Paragraph 309:  We note the commitment on cu stoms unions and free trade areas.  We suggest 
an expansion of the text as follows: 
309.      The Representative Ukraine confir med that Ukraine would observe all WTO provisions 
including Article XXIV of GATT 1994 and Article V of the GATS in its participation in 
preferential the trade agreements, and would ensure that the provisions of these WTO 
Agreements for notification, consultation and ot her 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, subm it 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 legislat ion or regulations required to be altered under 
its Trade Agreements would remain consistent wi th 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. 
Answer:
 
Ukraine takes note. 
 
__________