RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/136 
3 March 2006 
 (06-0915) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Additional Questions and Replies  
 
 
 The following submission, dated 27 February 2006,  is being circulated at the request of the 
Delegation of Ukraine.   
_______________ 
  WT/ACC/UKR/136 
 Page i 
 
 
  TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Pricing Policies ............................................................................................................... ...........1  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................5  
- Trading Rights ................................................................................................................. .........5  
A. IMPORT REGULATIONS......................................................................................................5  
- Ordinary cust oms duties ........................................................................................................ ..5 
- Other duties and charges....................................................................................................... ...5 
- Tariff rate quotas, tariff exemptions.......................................................................................6  
- Application of internal taxes on imports...............................................................................14  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............16  
- Customs Valuation.............................................................................................................. ....21  
B. EXPORT REGULATIONS ...................................................................................................22  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................25  
- Sanitary and Phytosanitary Measures ..................................................................................25  
- Agricultural policies.......................................................................................................... ......28  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................30  
- GENERAL........................................................................................................................ .......30  
- Geographical indications, including appellations of origin.................................................30  
 
  WT/ACC/UKR/136 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Pricing Policies Question 1 We note Ukraine's willingness in its response to Question 1 of WT/ACC/UKR/131 to adjust 
Table 3 to accurately reflect the full scope of pr icing regulations concerning sugar production in 
Ukraine.  Table 3 in the revised Working Part y report does not reflect the changes proposed 
within WT/ACC/UKR/131.  We ask that Ukraine adjust the Working Party Report to reflect the following entries: 
In the revised Table 3, Ukraine's entries should be: 
− "Ex 1701.99", for the code; ('ex' is required as  Ukraine only applies this pricing policy 
to a subset of 1701.99 – that being sugar refin ed from sugar beets produced in Ukraine, 
and not all refined sugar). 
− "Domestic refined sugar of beet origin produced within the limits of the A quota", for 
the product description; and 
− "Minimum sale price", for the measure. 
Furthermore, in the revised Table 3, Ukraine's entries should be: 
− 1212.91 for the code (sugar beet); 
− "Domestic sugar beet purchased by sugar pr ocessors within the limits of the A quota"; 
and 
− Minimum purchase price. 
Answer:
  
To avoid misunderstandings, may we point out that  tables numbering has changed due to respective 
amendments and additions to the Draft Report. As a result of it, the table "Goods Prices and Tariffs to 
Which Are Subject to State Regulation" turns out to be Table 4 of the Working Party Draft Report.  In 
this Table, Ukraine accepts entering code 1701.99 followed by 'Ex', making therewith a reference to 
the what exactly this 'Ex' stands for; in the co lumn containing goods description, the wording "Sugar 
produced from sugar beet in Ukraine within the A quota" will be retained, but in the column 
describing measures, Ukrain e insists on the wording "minimum (support) price" to be consistent with 
the terminology in the law (minimum prices) and to  ensure clear understanding of the nature of the 
measure. And will fill out the Table as presented below:  
English version of Table 4 of the Draft Report 
Ex 
17.01.991  Sugar 
produced from 
sugar 
beet in Ukraine 
within 
the A quota Approval 
of minimum 
prices  
(support prices) The 
Cabinet of Ministers 
of Ukraine The Law of Ukraine "On State Regulation of Sugar 
Production and Sale, No. 758-XIV, dated 17 June 1999, and Resolutions of the Cabinet of Ministers of Ukraine 
(hereinafter the "CMU") "O n Certain Issues of State 
Regulation of Sugar Production and Sale," No. 868, dated 2 June 2000 "Certain Issues of State Regulation  of Sugar  
Production and Sale," No. 142, dated 15 February 2002, 
and "On State Regulation of Sugar Production and Sale of," No. 1977, dated  25 December 2002. 
 
Note:  'Ex' means that Ukraine only applies this pricing policy to sugar refined from sugar beets produced in 
Ukraine within the A quota, and not all the refined sugar within 1701.99. WT/ACC/UKR/136 
Page 2  
 
 Ukraine agrees to the proposed changes for the code 1212.91 (sugar beet) except for changing 
minimum prices (support prices)" to "Minimum Purchase Price" for the same reasons stated above. 
12.12.91 Sugar 
beets 
Domestic 
sugar beet 
purchased 
by sugar processors 
within the 
limits of the A 
quota Approval of 
minimum 
prices (support 
prices) The Cabinet 
of Ministers 
of Ukraine The Law of Ukraine "On State Regulation of Sugar 
Production and Sale," No. 758-XIV, dated 
17 June 1999, and Resolutions of the Cabinet of 
Ministers of Ukraine (her einafter the "CMU") "On 
Certain Issues of State Regulation of Sugar 
Production and Sale," No. 868, dated 2 June 2000 "Certain Issues of St ate Regulation of Sugar 
Production and Sale," No. 142, dated 
15 February 2002, and "On State Regulation of Sugar Production and Sale of," No. 1977, dated 
25 December 2002. 
 
Question 2 
We noted Ukraine's explanation that since 2000, it has not provided support by administered 
prices for refined sugar applied through official in terventions.  We appreciate that this has been 
reflected in the latest revision of the Working Party Report.  However, Ukraine also noted in 
paragraph 58 that it retains the right, in la w, to trigger market interventions aimed at 
supporting domestic producers.  As intervention s would entail an additional form of price 
support (which Ukraine has recognised as being di stinct from and unrelated to provisions under 
Article 8 of the Law concerning minimum/maxi mum prices), we recommend Ukraine reflect 
this in Table 3.  This could be done as follows: 
− "1701.99", for the code; 
− "Refined sugar"; for the product description; and 
− "Administered price applied through official intervention", for the measure. 
Answer:   
Beginning from 17 June 1999 and until now, support to domestic sugar producers has been regulated 
by the Law of Ukraine On State Regulation of Sugar Production and Distribution in Ukraine No. 758. 
This Law provides, among other things, for minimu m prices applied to refined beet sugar within a 
quota as means of support to domestic producers of s ugar beets (as per Annex 3 to the Agreement On 
Agriculture). Provisions of the Law of Ukraine "On State Support to Agriculture of Ukraine" 
No. 1 877 entered into effect on 1 January 2005 c oncerning institution of minimum purchase prices in 
the meaning of Article 4 and effectuation of commod ity interventions in the meaning of Article 6 of 
the said Law were not applied in 2005 and have not been applied in the current year for sugar 
produced from sugar beets.  Therefore, the proposed  addition to Table 3 appears to be irrelevant. 
Please see the complete text of the Law of Ukrain e "On State Support to Agriculture of Ukraine" 
No. 1 877-IV which can be obtained through document WT/ACC/UKR/136/Add.1. 
Question 3 
We note recent reports from Ukraine that dome stically-refined sugar from imported raw cane 
sugar appears to be being purchased by St ate Reserves.  We seek confirmation of: 
− whether these purchases relate to domestic refined sugar from imported raw cane origin 
or simply imported raw cane sugar; 
− How the level of imports is determined – at what intervals, and what level of imports go 
to State Reserves as a proportion of total imports?;  WT/ACC/UKR/136 
 Page 3 
 
 
 − How the Government ensures these imports go to State Reserves – does it provide 
exclusive rights to Government authorit ies for the purchase of such sugar; and 
− On what price terms are this sugar bought an d sold – for example, how does the Reserve 
determine the sale price into the domestic market?   
Answer:  
The State Committee of Ukraine on Material Reserv e (the "Derzhcomreserve of Ukraine") does not 
directly import raw cane sugar. There was, how ever, a single instance in 2005, when the State 
Customs Service of Ukraine provided the Derzhcomr eserve of Ukraine with 110.6 thousand tons of 
raw cane sugar.  It was a single instance. 
This raw cane sugar was received by Ukraine under th e Article 246 of the Customs Code of Ukraine. 
According to this Article a rejection in favour of the state is a customs regime under which the owner 
rejects the goods that are under customs control w ithout any conditions in his favour.  Under the 
regime of rejection in favour of the state no taxes or duties are assessed or levied on the goods, neither 
any non-tariff measures are applied. A rejection of th e goods in favour of the st ate is allowed pursuant 
to a permit of the customs body i ssued in accordance with the proce dure established by the Cabinet of 
Ministers of Ukraine. 
Pursuant to the Government decision and to ensure  processing of raw sugar received by the state, the 
Derzhcomreserve of Ukraine has been allowed to sell it in accordance with the limited-participation 
auction procedure pursuant to the Procedure fo r Selling Material Values of the State Reserve 
approved by the Resolution of the Cabinet of Mi nisters of Ukraine No. 1078 dated 25 August 2004, 
through its State Reserve system enterprises.  
This raw cane sugar was refined and sold on the leve l of internal sales price on the domestic market. 
Question 4 
We also note a recent report indicating that th e State Committee for Material reserve had sold 
domestically refined sugar of cane origin at  a set price of UAH 2.8 per kilogram (around 
US$ 0.25c/lb) or double the world price.  Could Uk raine please confirm whether this is the case 
or not?  If so, can Ukraine provide an explan ation as to how the State Reserve has established 
such a price, and whether it is effectively a pplying a minimum domestic sale price to such 
sugar? 
Answer:  
The "report" is inaccurate. The price referred to is for refined sugar produ ced from domestic sugar 
beets and sold by the State Food Reserve. 
Question 5 
We note Ukraine's response to Question 8 of WT/ACC/UKR/131 that no export international 
trade agreements have been reached on sugar since 1996.  In other responses 
(WT/ACC/UKR/126 Question 6) that prices for sugar under the B quota are determined by 
international agreements.  If there have been no  international agreements on sugar since 1996, 
at what prices are Ukraine's refined sugar expo rted at and does this imply that B Quota has 
been non-operational? WT/ACC/UKR/136 
Page 4  
 
 Answer:
 
Responses to Question 6 of WT/ACC/UKR/126 and Question 12 of WT/ACC/UKR/120 indicated 
that pursuant to the Law of Ukraine On State Regulation of Sugar Production and Distribution in Ukraine, prices applied to exports within a B quota are determined subject to international 
agreements.  Ukraine would also like to reconf irm its response to Question 8 of WT/ACC/UKR/131 
to the effect that since 1996, Uk raine has not participated in in ternational agreements for sugar 
exports. Since international agreements weren't si gned, quota B was not instituted and sale prices for 
B quota exports were not determined respectively.  Furthermore, Paragraph 195 of the Draft Report 
(WT/ACC/SPEC/UKR/5/Rev.3) indicates that B and C quotas were never instituted by the 
Government. 
Question 6 We appreciated clarification in paragraph 58 of the WT/ACC/SPEC/UKR/5/Rev.3 that 
minimum and/or maximum purchase prices have not been applied to imports or exports of any 
product pursuant to the provisions of Article 8 of the Law "On State Support to Agriculture in Ukraine".  It remains our expectation that Uk raine will repeal all those provisions relating to 
the application of such prices to imports prior to  the date of accession.  While this is partially 
addressed at the end of paragraph 58, we will n eed to consider stronger commitment language 
to repeal these provisions, even if Ukraine has no t applied them to imported products to date.  
In particular, we would propose the follo wing specific language for this section: 
− Addition of a reference to "Article III:4" in paragraph 57 – which currently 
reads…"could contravene Article III:9 of GATT 1994". 
− Addition of a reference to "Article III:4" in paragraph 59 where the term 
"Article III:9" currently exists; 
− Addition of the following commitment langu age in paragraph 59 – "Ukraine confirmed 
it would repeal provision of Article 8 of the Law "On State Support of Agriculture in Ukraine" providing for the application of minimum prices on imports on a temporary 
basis". 
Answer:
 
Ukraine does not object to the addition of a referen ce to Article III:4 GATT in paragraph 57 and 59 of 
the Report.  However, we would like to note once ag ain that the Law of Ukraine "On State Support to 
Agriculture in Ukraine" does not stipulate the app lication of obligatory minimum purchase prices on 
imports.  
Question 7 
We would appreciate more detailed advice on the provisions of the Law "On State Support to 
Agriculture in Ukraine" that could trigger mark et interventions aimed at supporting domestic 
agricultural producers.  In particular what cond itions constitute a threat to the "competitive 
operation of the market" as defined in paragraph 58 of WT/ACC/SPEC/UKR/5/Rev.3. 
Answer:   
Articles 6.4, 7.4 and 8.1-8.9 of the Law of Ukra ine "On State Support to Agriculture in Ukraine" 
contain provisions with respect to provisional administrative regulation.  
Please see the complete text of the Law of Ukrain e "On State Support to Agriculture of Ukraine" 
No. 1877-IV (please see document WT/ACC/UKR/121).  WT/ACC/UKR/136 
 Page 5 
 
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 8 We support the concerns of Members in par agraph 82 on the size of fees imposed on the 
importation of alcoholic beverages.  We look forward to further information from Ukraine on 
the reform of this measure. 
Answer:
  
The Government prepared and submitted to the Pa rliament a draft Law of Ukraine "On Amendments 
to Certain Legislative Acts of Ukraine" (No.  8373 of 1 November 2005), amending Law No. 481, 
dated 19 December 1995, in order to bring licen sing fees for alcohol beverages and tobacco in 
compliance with Article VIII GATT 1994. (The said dr aft Law provides for a substantial cut of fees 
for licenses for production of and trading in spirits , alcohol beverages and tobacco products to the 
amount of 15 - 20 of citizens' non-taxable minimum incomes, which will approximately be equal to 
€ 60.  Alongside with this, it is proposed to intr oduce an annual fee for alcohol and tobacco addiction 
prophylaxis and treatment measures, the amount of which fee, except for a fee for production of raw 
grape spirit and raw fruit spirit, will be equal to an existing fee for the licence, and for business 
entities that are engaged in retail trading in alc ohol beverages the amount of the above fee will be 
differentiated depending on the numbe r of population determined pursuan t to statistical data for the 
previous year.  In addition, the draft Law amend Article 14 of the Law of Ukraine "On the Taxation 
System", whereby the annual fee for alcohol and tobacco addiction prophylaxis and treatment measures must be included into the list of national mandatory fees and charges). 
A. IMPORT REGULATIONS - Ordinary customs duties Question 9 We note Ukraine's indication in paragraph 92 that it would provide a copy of a concordance 
table for conversion of tariff commitments to HS2002 once the relevant "Law had come into 
force".  We seek clarification as to when this w ill be provided, and note our expectation that we 
would be able to study the concordance table pr ior to the finalisation of the accession process. 
Answer:
  
Ukraine will make these tables available in due course. 
- Other duties and charges 
Question 10 
We support calls for the abolition of a 1 per cent duty on wines and spirits upon accession.  
Irrespective of whether this is applied in confor mity with Article III of GATT 1994, it remains a 
basic accession commitment that all such  ODCs be bound at zero upon accession. WT/ACC/UKR/136 
Page 6  
 
 Answer:
  
Pursuant to Article 1 of the Law of Ukraine "On th e Tax for Development of Viticulture, Horticulture 
and Hop-growing", dated 9 April 1999, No. 587-XI V, payers of this tax are business entities, 
irrespective of their form of ownership and subordi nation, which sell alcoholic beverages and beer in 
a wholesale and retail network.  According to Ar ticle 2 of this Law, proceeds from the sale of 
alcoholic beverages and beer in the whol esale and retail network shall be taxed.  
Proceeds from the sale in the wholesale and retail network of domestically produced and imported 
alcoholic beverages and beer shall be taxed at the rate of 1 per cent.  
This 1 per cent tax is not included into the list of border measures defined by Article 4.2 of the 
Agreement on Agriculture as measures that are re quired to be transformed into usual duties. 
- Tariff rate quotas, tariff exemptions Question 11 We note fundamental concerns with the operation  of Ukraine's proposed allocation mechanism 
for TRQ on raw cane sugar and have provided a s erious of detailed questions below to which we 
seek responses.   In particular, Ukraine's expl anation of its TRQ mechanism is not consistent 
with the draft regulation it has provided.  Once responses are provided to these questions, we 
will provide further suggestions on changes Uk raine will need to make to ensure full WTO 
consistency of its regime. 
Ukraine has provided a copy of a "Regulation on Allocation of TRQ on Raw Cane Sugar 
importation".  The legal status of this regulation is  unclear.  We seek clarification as to its status 
in Ukrainian legislation or regulation.  Furthermo re, the copy provided to us by Ukraine is not 
consistent with the version of the regul ation tabled formally as Annex 10 of 
WT/ACC/UKR/110/Add.1 dated 24 Octo ber 2002.  We seek clarification as to what is the most 
recent version of this regulation and its current legal status in Ukraine. 
Answer:
  
The latest revision of the regulation governing the allocation of a tariff rate quota on raw cane sugar 
importation into Ukraine was a subject of bilate ral discussions during a visit to Geneva of the 
Ukrainian delegation on 24 Nove mber 2005.  Upon negotiations with some Working Party members, 
some minor changes have been made in th e previous wording following the language of 
WT/ACC/UKR/110/Add.1 of 24 October 2002.  The sai d Regulation with amendments according to 
requests and comments of Working Party members will be approved by the Cabinet of Ministers of Ukraine and will enter into effect across the whole of Ukraine upon Ukraine's accession.  
Question 12 There are a number of aspects of the draft Regulation provided by Ukraine that need further 
clarification, and some that do not fully refl ect Ukraine's explanation of its proposed TRQ 
allocation mechanism at recent meetings.  Following  responses to the questions outlined in this 
paper, we will be in a position to discuss ne cessary amendments to Ukraine's regulation to 
ensure its WTO consistency. 
On Point 2.1 of its draft Regulation, Ukraine notes that "during the first year of Ukraine's 
membership of the WTO, the respective tariff ra te quota share of the supplying countries shall 
be determined in proportion of the volumes of supplies during the preceding three years".   WT/ACC/UKR/136 
 Page 7 
 
 
 During discussions on this regulation, Ukraine, however, has referred to so-called "traditional 
suppliers" being entitled to a proportion of overall TRQ upon accession based on its share of 
overall imports in a previous reference period. 
Can Ukraine confirm that "supplying countries" in the first sentence of paragraph 2.1, actually 
means "traditional suppliers" or those count ries which have been granted access to a 
"traditional suppliers" share of the TRQ? 
Answer:  
Ukraine confirms that the supplying countries as used in Paragraph. 2.1 means the countries that have 
already been present on Ukraine's market and have been granted access to a "traditional suppliers" 
share of the quota.  
Question 13 Can Ukraine confirm that the first sentence of paragraph 2.1 actually refers to the fact that 
such "traditional suppliers" will be entitled to a share of the 80 per cent part of the overall TRQ 
– depending on its historical share of imports? 
Answer:
 
The right to an 80 per cent proportion of the ove rall TRQ volume will be granted to supplying 
countries having been present on Ukraine's ma rket as per definition of Paragraph 2.1. 
Question 14 
Can Ukraine explain the definition of a "traditional supplier" and where this is reflected in its 
draft regulation? 
Answer:  
The proposed regulation does not contain the term "t raditional supplier" as it covers the countries that 
have been present on Ukraine's market during the pr eceding three years according to Paragraph 2.1.  
Question 15 
Can Ukraine confirm the reference period that w ill be used as a basis for determining shares of 
the 'traditional suppliers' in the first year of supply following accession?  Point 2.1 suggests this 
would be the "preceding three years" before a ccession.  In our discussions with Ukraine, 
however, it has suggested shares would be based on  the countries' share of imports in an earlier 
reference period (2001-03).   
Answer:  
The base period will be three most re cent years preceding the WTO accession. 
Question 16 
Points 2.1-2.3 of the draft Regulation, Ukraine notes that "20 per cent of the global tariff rate 
quota shall be reserved for new countries interested in supplying  raw cane sugar to Ukraine".  
The reference to a 20 per cent share in Point 2.1 is made only in the context of the "first year of WT/ACC/UKR/136 
Page 8  
 
 Ukraine's membership", while the reference in Po int 2.3 refers to the offer remaining in effect 
until "1 December of the current year".   
In our discussions with Ukraine, however, it indi cated that this 20 per cent share would also be 
reserved for newcomers in the first, and in all foll owing years, the TRQ remained in operation.   
We seek confirmation this is the case, and ask for an indication as to where this is captured in 
the current draft regulation.   
Answer:
 
20 per cent for new suppliers will be reserved each  year according to the point 2.1 of the draft 
Regulation. After supplying raw sugar during the firs t year, new suppliers will be included in the 
"supplying countries" category for following years. 
Question 17 We seek clarification as to how the shares of 'n ewcomers' are determined when they first enter 
the 20 per cent quota set aside for them?  Is this distributed on a FCFS basis or some other method?  
Answer:
 
The 20 per cent share of the quota will be a pportioned in equal sh ares among new supplying 
countries.  After allocation the TQ of each country will be distributed on a FCFS basis. 
Question 18 
Similarly, Ukraine had indicated to us that it proposed to retain a 80 per cent share of TRQ for 
allocation to "traditional suppliers".    
We seek clarification as to where this is reflected in the current draft Regulation.   Answer:
 
Whereas new suppliers account for 20 per cent of  the total TRQ volume (paragraph 2.1), then 
80 per cent respectively cover the supplying countries. 
Question 19 
As a "traditional supplier" within the 80 per cent pool – what happens to an individual 
country's share of the 206,000 in the following year in the event that it fails to supply all of its 
quota?   
Does it continue to receive the quota allocation  it was entitled to in the previous year 
(i.e. unaffected by its inability to fill quota) or does its quota share fall to zero? 
Does it continue to receive the quota allocation from the previous year (i.e. unchanged by its 
inability to supply the entire quota) or does its quot a share decline to the level that it actually 
supplied last year?  WT/ACC/UKR/136 
 Page 9 
 
 
 Answer:  
Whereas new suppliers account for 20 per cent of the total TRQ volume (Paragraph 2.1), then 
80 per cent respectively cover the supplying countries. 
A country's tariff rate quota share in a given year is pro rata to the previous year's volume of supplies 
by that country.    
As such, the supplier country would be determined as a "newcomer" in case an individual country 
fails to supply any of its entitled quota in the previous year. 
If a country fails to supply part of its quota share in the previous then its quota share for the next year 
will be calculated proportionally to the previous year's volumes of supplies. 
Question 20 
Furthermore, as Ukraine has described its propo sed system, "newcomers" entering the market 
would, in the subsequent year, be considered a "traditional suppliers" and would be guaranteed a percentage share of the pool reserved for tr aditional suppliers (i.e. of the 80 per cent or 
208,000 tonnes).  In other words, the newcomer woul d be shifted from the 20 per cent box to the 
80 per cent box.   
We seek clarification from Ukraine that our understanding of its proposed mechanism is 
correct. 
Answer:
 
Yes it is correct. 
Question 21 
If so, can Ukraine indicate where this procedure is reflected in a transparent manner in its draft 
Regulation? 
Answer:  
If a new supplier was supplying during the first year, then it is only logical that next it will no longer 
remain a new supplier.  Accordingly, it will be moved to a category of supplying countries, i.e. 
covered by the 80 per cent share.  Ukraine will amend the Draft Regulation, particularly 
Paragraph 2.2. 
Question 22 
In particular, can Ukraine indicate where it ha s described how the shares of the "traditional 
suppliers" of the 208,000 tonne quota would be  altered to accommodate the inclusion of 
"newcomers" within that 208,000 tonnes in a subsequent year?   
Answer:  
Beginning from the second year of the quota applicati on, 80 per cent of the quota will apportioned in 
proportional shares on the basis of last year's volumes of supplies, among the supplying countries including the ex-new entrants ha ving joined the supplying countries category after the first year of 
supplies. WT/ACC/UKR/136 
Page 10  
 
 Question 23 
Once a "newcomer" enters the "traditional suppli er" category, does it remain in this pool for 
all subsequent years?  For example, if as a "tra ditional supplier" it failed to supply its quota in 
a particular year, would its share fall to zero in  the subsequent year or would it continue to 
receive the same initial share?  If its share were to  fall to zero, how would it be able to re-access 
quota in a future year – via the 80 per cent pool, or via the 20 per cent pool? 
Answer:
 
After a new supplying country has been transferred to  the "traditional supplying countries" category it 
remains to belong there for the entire next year.  A supplying country having declined the supply of 
the proposed quota share as defined in paragraph 2.1 will re-enter the new suppliers category 
(accounting for 20 per cent of the TRQ) for the next year.  
Question 24 
Point 2.2 of the draft Regulation notes that "a supplying country" shall be "granted a 
proportion of the tariff rate quota which shall be not less than the proportion of the quota 
actually used in the preceding year".   
We seek clarification of the meaning of "a supplying country" in this paragraph.  Does this 
refer to countries already in the "traditional su ppliers" component of the TRQ?  Does it also 
refer to "newcomers" that have supplied for the first time in the market in the preceding year 
referred to in 2.2? 
Answer:  
Beginning from the second year of the quota appli cation 80 per cent of the TRQ will apportioned in 
proportional shares on the basis of last year's volumes of supplies, among the supplying countries 
including the ex-new entrants ha ving joined the supplying countries category after the first year of 
supplies. 
Question 25 
Further on Point 2.2, Ukraine has indicated th at "newcomers" will be added to the pool 
available to "traditional suppliers" (i.e. 206,000) in a subsequent year to their trading in the 
20 per cent reserved for "newcomers".   
In order to ensure "newcomers" (from the previo us year) are added to the existing 206,000 pool 
– does this not require the individual quota sha res of all other "traditional members" to be 
reduced in order to accommodate the "newcomer"?   
Answer:  
Yes, this is possible insofar as the number of countries will grow. 
Question 26 
If so, how does Ukraine guarantee its proposed commitment in point 2.2 that "the supplying 
country shall be granted a proportion of the TRQ which shall not be less than the proportion of 
the quota actually used in the preceding year."  How does Ukraine meet this guarantee, given as  WT/ACC/UKR/136 
 Page 11 
 
 
 newcomers are added to the traditional supply pool , both the size/share of traditional suppliers 
would have to fall to accommodate an additional country in the fixed 208,000 pool.   
Answer:  
What is meant here is not ensuring the last year's volume of quota but rather ensuring the 
proportionate share of the quota. 
In this context, proportionate means that the relationship between the shares of the traditional 
suppliers remains unchanged that is, if in the firs t year the quota of traditional supplier A was twice  
the size of the quota of traditional supplier B, then, th e same relationship would hold in year two, after  
inclusion of ex "new suppliers".  The share of both original suppliers in the quota reserved for 
traditional suppliers would of cour se go down and would do so proportionally, thus ensuring that the 
relationship between traditional suppliers remains unchanged.  
Question 27 
Given this system would result in additional 'n ewcomers' being squeezed into the 'traditional 
supplier' share of 208,000 tonnes per year, there is  significant potential for the size of quota 
allocated to licence holders to be  in quantities that are not econo mically or commercially viable 
as required by Article 3.5(i) of the Agreement  on Import Licensing Procedures.  How does 
Ukraine ensure this test is met? 
Answer:  
Article 3.5(i) of the Import Licensing Agreement ta lks about provision of information concerning the 
restrictions imposition procedure upon a request fro m any WTO member.  A tariff rate quota is not a 
restriction but rather a preference.  Ukraine will abide by the said agreement and will fairly allocate 
each share of the quota in order to secure its full utilization, and will put in place an open, fair and 
transparent system of tariff rate quotas allocati on compatible with market economy standards and 
conditions.  
Question 28 
In relation to the proposed 260,000 tonnes set out in point 1.2 of the draft Regulation, Ukraine 
has not indicated that TRQ access provided under any bilateral and regional free trade 
agreements (as well as access to non-WTO me mbers) should not count towards MFN TRQ 
volumes.  We seek clarification of this issue. 
Answer:  
260,000 tonnes worth of the quota will be allocated exclusively among WTO members. 
Question 29 
We also seek clarification as to the role of th e State Reserve in relation to importation of raw 
cane sugar.  Is the reserve involved in the purch ase of imports of Raw Cane Sugar, and would 
such importation count towards fulfilment of the TRQ proposed in its regulation? 
Answer:   
The State Reserve does not import raw cane sugar. WT/ACC/UKR/136 
Page 12  
 
 Question 30 
In point 2.3, Ukraine indicates a proposed me chanism for re-allocating any quota unused by 
"newcomers" within the 20 per cent global quota share.  It notes that the quota remains in 
effect until 1 December of the current year and in the absence of new entrants, the quota shall be distributed within one-month's term.  We note that this would involve re-distribution of 
quota by January of the following year (i.e. at the start of the new year).   
Given redistribution of this quota will not be ac hieved in time for that quota to be utilised 
within the current year, can Ukraine confirm that this unused quota will effectively be added to 
the new starting quotas of individual countries in the next year?   That is the global quota would be 260,000 tonnes plus any of the 52,000 tonnes left unutilised from the previous year?  This is 
not reflected in any aspects of the draft Regulation. 
Answer:
  
The total annual quota volume equals 260 thousand tons. Quota shares unused by supplying countries 
in a quota year cannot be carried over into the following year.  
Question 31 
Within what timeframe would exporting countries be able to utilise this additional quota once it 
has been distributed? 
Answer:   
Exporting countries may only use quota shares allocated to them within the quota year. 
Question 32 
In setting the deadline of 1 December for utilis ation of the 20 per cent of quota reserved for 
'newcomers', does Ukraine take acco unt of the fact that contracts could be signed for delivery of 
sugar cane within the month of December.  In su ch situations, how does this system of quota re-
allocation ensure that such quota can be supp lied rather than automatically redistributed?   
Answer:   
With the purpose to have time to conclude the c ontracts, Ukrainian party would accept changing the 
deadline to October 1 which will enable timely redistribution of the 20 per cent proportion of the 
quota provided that no new suppliers have appeared , and extension of the time needed for entering 
into additional contracts. 
Question 33 
We understand from Ukraine that any quota unutilised within the "traditional supplier" 
category will also be redistributed.  We understan d any unused quota (i.e. of the 208,000) would 
be redistributed on a First-Come-First-Served (F CFS) basis across all participants – newcomers 
and traditional suppliers.  This would be redistrib uted in accordance with their existing shares.  
We seek confirmation from Ukraine that this is  how it plans to redistribute such unused quota?  WT/ACC/UKR/136 
 Page 13 
 
 
 Answer:   
The shares unused by importers as per paragraph 2. 8 will be allocated based on the "first come – first 
served" principle.  
Question 34 
We seek clarification from Ukraine as to where this  aspect of its regime is captured in its draft 
Regulation? 
Answer:   
Please see paragraphs 2.8 – 2.12. 
Question 35 
We seek clarification as to when such redistr ibution would occur, and within what timeframe 
those receiving additional re-dist ributed quota would be able to supply such amounts?  Would 
such volumes be required to be sold before the e nd of the current year, or would it be added to 
allocations in the following year? 
Answer:   
Redistributed additional volumes of the quota must be realized by the end of the quota year. Question 36 If such quota is allocated to countries in th e "newcomers" category – and they are able to 
supply this allocation, how will their share of th e overall quota be calculated in the following 
year?  (i.e. will the redistributed quota they have  utilised be factored into their overall share of 
the TRQ and used as a basis for determining their allocation when they move to the "traditional 
supplier" category in the subsequent year?) 
Answer:
  
Yes, but note that what is meant here is the alloca tion of a proportionate share of the quota rather than 
a share being equivalent to the volume supplied last year. 
Question 37 
We thank Ukraine for its commitments on the bi nding of tariffs at six-digit level for cheese 
(tariff heading HS 0406) and wines (tariff heading 2204), without any indication of its place of 
origin (paragraph 94). 
We thank Ukraine for its compliance with WTO rules by not applying auctioning as a TRQ 
administration method (paragraph 108, second sentence). 
Proposal:  As the only TRQ that Ukraine would use is the one on sugar, we propose to clarify 
this issue with the following language in  the first sentence in paragraph 108:  
108.  The representative of Ukraine said that from the date of accession Ukraine 
would allocate its only  tariff rate quota on sugar  o n l y  i n  c o n f o r m i t y  w i t h  t h e  
WTO Agreement, including Articles I, II, VIII, X, XI and XIII of GATT 1994, WT/ACC/UKR/136 
Page 14  
 
 Article 4 of the Agriculture
 Agreement on Agriculture , the Agreement on Import 
Licensing Procedures and other WTO provisions.  […]. 
Answer:   
Ukraine has no objections to the proposed language, but suggests restating this paragraph as follows: 
108.  The representative of Ukraine said that  from the date of accession Ukraine would 
allocate its only  tariff rate quota on raw cane  sugar only in conformity with the 
WTO Agreement, including Articles I, II, VIII, X, XI and XIII of GATT 1994, Article 4 of the Agriculture
 Agreement on Agriculture , the Agreement on Import 
Licensing Procedures and other WTO provisions.  […]. 
- Application of internal taxes on imports  
 - VAT 
Question 38 The first and second sentences of paragraph 124 s ay: "He added that Article 11.5 of the Law 
"On Value Added Tax" allowed taxpayers to issu e promissory notes for the payment of VAT.  
This provision did not apply to the importation of excisable goods, nor to agricultural goods." 
The use of promissory notes limited only to goods produced locally is inconsistent with 
Article III:4 of GATT 1994, which prescribes that  imported products "…shall be accorded 
treatment no less favourable than that accorded to  like products of national origin in respect of 
all laws, regulations and requirements affecting th eir internal sale, offering for sale, purchase, 
transportation, distribution or use". Accordingly, the above mentioned limitation on the use of a promissory note as a means to comply with  VAT is inconsistent with Article III:4 of 
GATT 1994, because it denies national treatm ent to imported products. Furthermore, the 
amendment of the Law on Value Added T ax by the Law No. 2505 (last sentence in 
paragraph 124) does not give any answer to this inconsistency, since it only appears to allow 
foreign companies to use promissory notes, no t mentioning the treatment of imported goods, 
irrespective of the foreign or local ow nership of the importing enterprise. 
Unless Ukraine clarifies this matter, Article 11. 5 of the Law on Value Added Tax ought to be 
amended, so as to allow payment of VAT on imported goods with promissory notes. 
Answer:
 
Pursuant to Article 11.5 of the Law of Ukraine "O n the Value Added Tax", taxpayers may, at the time 
of importation of goods into Ukraine's customs territo ry, provided that a cust oms declaration has been 
filled out, issue at their discretion to customs contro l authorities a promissory note for the payment of 
VAT with a maturity date falling on the 30th day from the date of delivery of the promissory note to 
the customs control authority.  This provision does not apply to the importation of excisable goods or agricultural products into Ukraine's customs territo ry.  This provision is not inconsistent with 
Article III:4 "National Treatment on Internal Taxation and Regulation".  We suggest restating the first 
sentence in paragraph 124 as follows:  "The represent ative of Ukraine added that Article 11.5 of the 
Law "On Value Added Tax" allows taxpayers to issue promissory notes for the payment of VAT at 
the time of importation of goods into Ukraine's custom s territory.  This provision does not apply to the 
importation of excisable goods or agricultural pr oducts into Ukraine's customs territory".    WT/ACC/UKR/136 
 Page 15 
 
 
 Question 39 
Exemption of VAT in benefit of domestic mi lk and meat: Paragraph 130 indicates that 
domestically produced milk and meat are exempted  from VAT, while there is no indication of a 
similar exemption for imported milk and meat. Thus, such less favourable treatment is inconsistent with Article III:4 of GATT 1994.  
This exemption must be removed, unless it is exte nded in benefit of imported milk and meats. 
Answer:
  
Paragraph 130 in the document WT/ACC/SPEC/UKR/5/Rev.3 does not indicate that domestically 
produced milk and meat are exempted from VAT.  It indicates that agricultural milk and meat producers sold their output to the processors asses sing VAT at a zero rate.  The processors applied 
20 per cent VAT to the sales of the final products, bought all inputs at the prices with 20 per cent 
VAT.  The VAT liability, which would normally be pa yable to the State budget, was transferred, as a 
subsidy (revenue foregone), to milk and meat producers.  
Question 40 
Prohibited subsidies:  Paragraph 130 says th at processors of agricultural products may 
calculate VAT on their inputs, despite that th ese products are either exempted products (milk 
and meat) or their VAT is channelled into "special  accounts".  As noted in paragraph 131, this 
treatment seems not to apply to imported agr icultural goods. Accordingly, it discriminates 
imported inputs.  In consequence it is inconsiste nt, at least with Article 3.1(b) of the Agreement 
on Subsidies and Countervailing Measures and Article III:4 of GATT 1994.  
This measure must be removed.  
Answer:
  
The VAT accumulation mechanism does not in any way discriminate against imported inputs in the 
sense of Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures and Article III:4 of GATT 1994.  The VAT rate (20 per cent) is equal both for imported goods and domestically 
produced goods.  As a matter of fact, the State gr ants an input subsidy fo r agricultural producers of 
input products (rather than to processing enterp rises), in the form of accumulated VAT (revenue 
foregone) instead of making direct transfers out of th e budget.  It is what is indicated in paragraph 
130.  
Question 41 
We look forward to advice of Ukraine's plans to address the concerns of members in 
paragraphs 131 and 134 in relation to discrimina tory application of VAT.  We appreciated 
Ukraine's advice at the most recent Working Pa rty meeting that it was considering draft 
legislation to bring its VAT measures into WTO consistency.  We look forward to further specific information on the reforms Ukraine is prop osing to undertake in this area in relation to 
agricultural products. 
Answer:
  
In Paragraph 132 Ukraine provided explanations me ant to lift the expressed concerns with the VAT 
mechanism application in Ukraine.  The only benefi ciaries of the VAT collection procedure applied in 
meat and dairy sectors are agricultural producers of meat and milk (not manufacturers). Processing WT/ACC/UKR/136 
Page 16  
 
 enterprises act as sheer intermediari es authorized by the government to transfer their VAT payment 
obligations as subsidies to agricultural producers.  Henceforth, the existing mechanism is not more 
advantageous (instrumental) for processing enterpri ses that it is for producers of principal types of 
agricultural produce.  For this reason, this mechan ism meets the criteria specified in Paragraph 7 of 
Annex 3 to the Agreement On Agriculture.  As c oncerns the VAT collection procedure as applicable 
to other types of agricultural produce, a representative  of Ukraine stated that he did not regard VAT 
accumulation to be a distortion as VAT rates (20 per cent) remain the same for both imported and domestic produce.  In essence, the government provides an input subsidy in the form of accumulated 
VAT instead of making direct disbursements from th e state budget.  The mechanisms of subsidizing 
domestic agricultural producers through the VAT co llection (subsidies for meat and milk and 
accumulation of VAT) will also be applied in 2006.  
The institution of a special VAT collection regime governed by the Law of Ukraine On Amendments 
to Certain Laws of Ukraine with Respect to Ta xation of Agricultural Enterprises and Maintaining 
Their Employees' Social Standards discriminati ng against imported agricultural produce in the 
meaning of Article III GATT has been postponed for 1 year until 1 January 2007 (Law of Ukraine On 
Amendments to the Law of Ukraine On Value Adde d Tax with Respect to Agricultural Enterprises)  
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 42 We appreciate the commitment offered in par agraph 144 to repeal of the provision of 
Article 3.11 of the Law "On State Regulation of Production and Sale of Sugar" No. 758-XIV of 17 June 1996.  We seek an update on Ukraine's progress in adopting a draft law to revoke the 
mandatory exportation of raw cane sugar. 
Answer:
  
The draft law is under consideration in the Verkhovna Rada of Ukraine. 
Question 43 
We are aware of reports that Ukraine is enforcing an internal ban on the sale of any sugar 
produced from raw cane sugar.  We seek clar ification of this measure as this would be 
inconsistent with Article III of GATT.  
Answer:  
Ukraine wasn't enforci ng such internal ban. 
Question 44 
We are aware of reports that Ukraine is managi ng the purchase and sale of raw imported sugar 
through a State Reserve.  We would appreciate al l relevant information on the operation of this 
reserve in relation to these imports.  These include information concerning: 
− how decisions are taken on the timing of sales and purchases; 
− how volumes of sales and purchases are determined; 
− on what basis the State Reserve may determine the price of sales or purchases'; and 
− whether this Reserve has been granted special or exclusive rights by the Government in 
relation to its activities – and what they might be.  WT/ACC/UKR/136 
 Page 17 
 
 
 Answer:  
The State Committee of Ukraine on Material Reserv e does not directly import raw cane sugar and it 
doesn't determine the price of sales or purchases' as well. 
Please also see the answer to Question 3. 
Question 45 
We request Ukraine provide the Working Part y with a copy of any specific regulations 
governing the provision of licenses for the im portation of raw cane sugar.  We seek full 
information on the operation of this system a nd its conformity with the Agreement on Import 
Licensing Procedures.  We also pose the following  questions in relation to this system, and its 
description in paragraph 2.7 of Ukraine's draft Regulation on the Allocation of TRQ on Raw 
Cane sugar importation: 
What is an importer required to submit in order to obtain an allocation?  
Answer:  
In accordance with the Import Licensing Regulation a pproved by an annual Order of the Ministry, an 
importer seeking a licence shall file the following documents with the Ministry of Economy: 
− An application requesting issuance of an import licence made out in accordance with the form 
set forth in an Annex to said Regulation; 
− A letter with respect to issuing a licence warran ting payment of the state duty for its issuance; 
− Contract copy, all attachments and specificati ons pertinent thereto certified by a manager of 
the applying business entity; 
− A copy of the state registration certificate si gned and sealed by a manager of the applying 
business entity; and 
− Original copy of an expert examination act to the effect of the good's code determination 
according to Ukrainian Foreign Economic Activity Commodity Classification (UFEACC) by the Chamber of Commerce and Industry of Ukraine or a regional Chamber of Commerce. 
Supplementary to the above list, an applicant is requi red to file a copy of the selling country's foreign 
entity's state registration certificate. 
It should be noted that the licensing regime in Ukra ine is made fully consistent with WTO rules and 
principles (Article 16 of the Law of Uk raine On Foreign Economic Activity).  
Question 46 
Are allocations provided on the basis of an importer providing information based on a 
forthcoming planned contract or series of contracts?  
Answer:
  
The quota is proportionally allocated among countries in accordance with the Regulation. After 
allocating the quota, the importer intending to impor t raw cane sugar within the tariff quota files an 
application in accordance with the established proce dure requesting to be provided with a portion of 
the allocated quota and a set of documents including the concluded contract for supplies and the name 
of the country from which this sugar will be shipped.  WT/ACC/UKR/136 
Page 18  
 
 Question 47 
Do importers need to specify the country or co untries they plan to import sugar from before 
receiving an allocation?   
Answer:
 
Please see the answer to Question 46. Question 48 Do they have to specify particular volumes of sugar they will import from specific countries? 
Answer:
 
Yes, it must be stipulated in a contract. 
Question 49 
In what quantities are licenses issued? Answer:
 
Licenses are issued in one copy only.  
Question 50 
Are quotas fully transferable between  enterprises, given that restrictions on transferability will 
make under-utilisation more likely?   
Answer:  
No, they are not. Please see paragraph 2.8. 
Question 51 
Ukraine notes that an importer failing to meet in full volumes of allocated TRQ will be obliged 
to surrender amounts in question by 1 September.  It notes that before 1 October, the 
Government accepts applications for the issu ance of licenses for unused quota.  We seek 
clarification as to the date when those licenses are issued, and within what period such quota 
can be utilised under the licence conditions. 
Answer:  
Licenses for unused quotas returned prior to 1 Sept ember will be issued on a "first come – first 
served" basis. Countries are required to supply add itional volumes of unused shares of the quotas by 
the end of a quota year. 
Licenses for a quota year will be issued during the quota year. Ukraine will enter appropriate 
amendments to respective clauses of the Regulation. 
Question 52 
What fees may be charged for the application for a licence and what is their cost?  WT/ACC/UKR/136 
 Page 19 
 
 
 Answer:  
According to Resolution of the Cabinet of Ministers of Ukraine No. 362 of 18 May 2005 "On 
Determining the Amount of Fee for Import (Expor t) Licenses Issuance", the state fee in the non-
automatic licensing mode has been set at the level of UAH 780.  
Question 53 
Under point 2.6 of this regulation, Ukraine stat es that "during 75 days following the date of 
publication of the announcement of the TRQ introduction for the next year, the Ministry of Economy and European Integration of Ukraine shall accept applications from importers 
requesting a licence to supply the prospective pr oportion of the quota as established for each 
supplying country".  As the publication of TRQ fo r the following year is made no later than 90 
days prior to 1 January (point 2.4 of the regulation), this means importers only have the right to 
seek licenses for quota up until 15 days befo re the start of the following year.  
Could Ukraine confirm that importers would not have the right to apply for further import 
licenses within the actual supply season (i.e. after 1 January of each year)? 
If this is the case, such a licensing arrangem ent would prevent importers from legitimately 
seeking rights to further quota (that may not be fully utilised) during the actual supply season, 
and hence pose an unnecessary barrier to the im portation of the TRQ volume.  Importers 
should be free to seek licenses for importation not only prior to the trading season, but 
throughout the entire season.  We will requi re a commitment from Ukraine to address this 
concern. 
Answer:
 
Licenses for a quota year will be issued during the quota year. Ukraine will enter appropriate 
amendments to respective clauses of the Regulation. 
Question 54 
Under its licence system, Ukraine requires the su rrender of unused quota in 1 September (for 
"supplying countries") and 1 December for "newcom ers".  In requiring this surrender, does 
Ukraine take full account of the fact that supp liers/importers may have signed binding contracts 
ahead of time for the delivery of sugar to Uk raine in the period September-December.  If 
suppliers have signed such contracts, quota shou ld be considered as having been utilised given 
the existence of demand for such supply in this  period of the year.  How does Ukraine ensure 
that, in such cases, such quota can be supplied rather than automatically redistributed?   
Answer:  
Ukraine does not require surrender of the unused quota  before 1 September. What is required instead 
is that a confirmation of its actual utilization be presented by the end of a quota year. 
Question 55 
We seek an opportunity to review the regulatio n on the procedure of import licensing which 
provides part of the framework for allocation of  sugar TRQs.  Will Ukraine submit this to the 
Working Party for consideration?  WT/ACC/UKR/136 
Page 20  
 
 Answer:
  
Ukraine will make this regula tion available in due course. 
The procedures referred to are detailed in the "Quantitative Restrictions on Imports Including 
Prohibitions, Quotas and Import Licensing" section of the Draft Report. 
Question 56 
In response to Question 28 of WT/ACC/UKR/131, Ukraine indicated that trade under barter 
arrangements was subject to the same fees and charges and internal taxes as other like products 
imported into Ukraine.  We asked that this be captured in the Working Party Report. 
Answer:  
Ukraine does not object to introducing these clarificat ions to the Draft Report of the Working Party. 
Question 57 Ukraine indicated in response to Question 29 of WT/ACC/UKR/131 that references in 
Table 12(b) to precious metals and stones would be changed to "gold and silver" and that the Law on Foreign Economic Activities would be amended accordingly by the date of accession.  We seek clarification as to the justification fo r applying import licensing/approval requirements 
to importation of gold and silver.  What purpose is envisaged underlying such a regulation, how 
would it be applied, and in what manner?   
Answer:
 
Ukraine will make certain amen dments to the Law on Foreign Economic Activity by the date of 
accession and they will be in accordance with GATT Article XX (c). 
Question 58 
We also seek an update on Ukraine's progress in amending its legislation to repeal legal 
provisions relating to the licensing of scrap metal imports. 
Answer:  
Currently, there are no import licensing requirements of scrap metals. 
Question 59 
We seek an update on the review of the activity licensing requirements to engage in importation 
of the products listed in Table 8(a).  We woul d like to see the date on which they will be 
eliminated included in a revised and updated version of Table 8(a). 
Answer:   
The licensing requirements for goods under Table 8(a) as these are necessary to protect, as indicated 
in Table 8(a), intellectual propert y rights, against deceptive practices as well as human health.  All 
measures are justifiable under Article XX of the GATT.  WT/ACC/UKR/136 
 Page 21 
 
 
 Question 60 
We look forward to advice of the outcome of the review of the requirements to engage in 
importation.  We would like to see the date on  which they will be eliminated included in a 
revised and updated version of Table 14(b). 
Answer:  
The licensing requirements for goods under Table 14( b) as these are necessary to protect, as indicated 
in Table 14(b), intellectual property rights, agai nst deceptive practices as well as human, animal and 
plant life and health. All measures are justifiable under Article XX of the GATT. 
Question 61 
We appreciate the commitment offered in par agraph 144 to repeal of the provision of 
Article 3.11 of the Law "On State Regulation of Production and Sale of Sugar" No. 758-XIV of 
17 June 1996.  We seek an update on Ukraine's progress in adopting a draft law to revoke the 
mandatory exportation of raw cane sugar. 
Answer:   
Please see the answer to Question 42 - Customs Valuation Question 62 We note recent reports indicating that the Ukrainian State Customs Service has signed a 
Cooperation Protocol (to come into effect 7 November) with domestic meat  importers.  We understand that under this protocol, agreements of with these importers under the protocol 
may serve  as the basis for determining the customs value of the meat imported by other 
importers.  We understand as similar arrangement exists in relation to fish.  This appears to 
violate GATT Article  VII:2(a).  
Answer:
 
Protocols of Cooperation have been signed betw een the State Customs Service of Ukraine and 
participants of the meat, meat products and dom estic animals imports markets in Ukraine of 
5 November 2005 and took effect on 7 November 2 005.  These Protocols weren't registered in the 
Ministry of Justice like every obligatory legal regulation and are not obligatory directions for determining the customs value of mentioned above products. They are directed on simplification of a 
customs procedure and cooperation. The customs valu e of imported goods is determined pursuant to 
the text of Articles 266 - 273 of the Customs Code of Ukraine, and the customs value of exported 
goods is determined pursuant to Article 274 of the Customs Code of Ukraine. 
Question 63 The second option in paragraph 164 is preferable. 
Answer: 
 
Ukraine proposes to remove the brackets from the following commitment language, except "nor 
would apply duties and taxes": WT/ACC/UKR/136 
Page 22  
 
 The representative of Ukraine confirmed that, as 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 GATT 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 software was based on the 
value of the media.  He stated that Ukraine would not use any form of reference or minimum 
prices or fixed valuation schedules for the valuation of imports nor would apply du
ties 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 VII of GATT 1994.  The Working Party took note of these commitments. 
B. EXPORT REGULATIONS Question 64 We are pleased to note that a Draft Law "On export Duty on Wastes and Scrap Non-Ferrous 
Metals and Alloy Steel" provides for the elimin ation of ban on export of scrap non-ferrous 
metals. 
We would appreciate advice on the passage of this Law. 
Could Ukraine please clarify whether this Law will  also eliminate the prohibitions in the export 
of scrap metals categorised in question 103 of WT/ACC/UKR/130 – i.e. scrap metals generated in military units, military institutions and m ilitary educational establis hments of the Armed 
Forces of Ukraine and in other military formatio ns, and on the export of parts and units of 
machines, ships, vessels, military equipment and machinery, railroad rolling stock in an 
assembled condition written off as scrap metal? 
We would also like to restate our request for an appropriate entry in a revised Table 19 of 
WT/ACC/SPEC/UKR/5/Rev.2 that includes details of these measures and a date of their elimination. 
Answer:
 
The draft Law of Ukraine on the reduction of the export duty for non-ferrous waste and scrap passed 
to the Verkhovna Rada with the following export duty rates: 
HS 96 Description After accession 
7202 99 80 00 Ferro-chromium-nickel 30%, but not less € 0.4 per kg 
720421 Waste and scrap of alloy steel and of stainless steel 30%, but not less € 0.4 per kg 
7204 29 00 00 Other waste and scrap of alloy steel  30%, but not less € 0.4 per kg 
7204 50 10 00 Re-melting scrap ingots of alloy steel 30%, but not less € 0.45 per kg 
7218 10 00 00 Stainless steel in ingots and other primary forms 30%, but not less € 1 per kg 
7401 Copper mattes, cement cooper (precipitated copper) 30%, but not less € 0.7 per kg 
7402 00 00 00 Unrefined copper, copper anodes for electrolytic 
refining 30%, but not less € 1 per kg 
7403 12 00 00 Wire-bars 30%, but not less € 1.2 per kg 
7403 13 00 00 Billets of refined copper 30%, but not less € 1.2 per kg 
7403 19 00 00  Other refined copper 30%, but not less € 1.2 per kg 
7403 21 00 00 Copper-zinc based alloys (brass) 30%, but not less € 1 per kg 
7403 22 00 00 Copper-tin based alloys (bronze) 30%, but not less € 1 per kg 
7403 23 00 00 Copper alloys, copper-nickel based alloys (cupro-
nickel) or copper-zinc based alloys (nickel silver) 30%, but not less € 1.6 per kg  WT/ACC/UKR/136 
 Page 23 
 
 
 HS 96 Description After accession 
7403 29 00 00 Other copper alloys (other than master alloys of 
heading 7405) 30%, but not less € 1 per kg 
7404 00 Copper waste and scrap 30%, but not less € 1 per kg 
7405 00 00 00 Master alloys of copper 30%, but not less € 1 per kg 
7406 Copper powders and flakes 30%, but not less € 1 per kg 
7414 90 00 00 Grills and netting of copper wires  30%, but not less € 1 per kg 
7415 29 00 00 Other articles of copper, not threaded (including 
spring washers) 30%, but not less € 1 per kg 
7415 39 00 00 Other articles of copper, threaded (except for screws 
for wood, other screws, bolts and nuts) 30%, but not less € 1 per kg 
7418 19 00 00 Common articles of copper and parts thereof, other 30%, but not less € 1 per kg 
7419 Other articles of copper 30%, but not less € 1 per kg 
750300 Nickel waste and scrap 30%, but not less € 5.5 per kg 
7602 00 Aluminium waste and scrap 30%, but not less € 0.4 per kg 
7802 00 00 00 Lead waste and scrap 30%, but not less € 0.3 per kg 
7902 00 00 00 Zinc waste and scrap 30%, but not less € 0.32 per kg 
8002 00 00 00 Tin waste and scrap 30%, but not less € 1.6 per kg 
8101 91 90 00 Tungsten waste and scrap 30%, but not less €10 per kg 
8108 10 90 00 Titanium waste and scrap 30%, but not less € 4 per kg 
 
As to the exports of scrap metals generated by  military units, military institutions and military 
educational establishments of the armed forces of Ukraine and other military formations as well as 
exports of assembled components/parts of machines , ships, vessels, military equipment and rolling 
stock of railroads written off as scrap metal, we would like to inform you that in accordance with 
Article 9 of the Law of Ukraine "On Scrap Metal" of 5 May 1999, No. 619-XIV, it is prohibited to 
export scrap metals generated by military units , military institutions and military educational 
establishments of the armed forces of Ukraine and other military formations established in accordance 
with laws of Ukraine, the list of which is approved by the Cabinet of Ministers of Ukraine.  It is 
prohibited to export elements of machines, ships, floating devices, military e quipment, rolling stock of 
railroads not disassembled, written off as scrap metal. 
Question 65 
Ukraine states that the export duty rates curren tly applied to scrap ferrous metals would be 
liberalised gradually.  We request that deta ils be provided on how liberalisation will be 
achieved, and would hope that the final outcome will be the elimination of the export duties.  
Answer:  
The draft Law of Ukraine on the reduction of th e export duty for ferrous scrap passed to the 
Verkhovna Rada with the following export duty rates: 
Code HS 96 Goods description U pon accession 1 year upon accession 
7204  Waste and scrap of ferrous metals, 
except for alloyed; iron and steel 
scrap ingots for re-melting, except 
for alloyed   
7204 10 00 00  - Waste and scrap of cast iron € 25/1 ton  € 18/1 ton  
7204 30 00 00  - Waste and scrap of tinned iron and 
steel € 25/1 ton  € 18/1 ton  
  - Other waste and scrap   WT/ACC/UKR/136 
Page 24  
 
 Code HS 96 Goods description U pon accession 1 year upon accession 
7204 41  -- Turnings, shavings, chips, milling 
waste, sawdust, filings, trimmings and stampings, whether or not in 
bundles   
7204 41 10 00  --- Turnings, shavings, chips, 
milling waste, sawdust and filings € 25/1 ton  
 € 18/1 ton  
  --- Trimmings and stampings   
7204 41 91 00  ---- in bundles € 25/1 ton  € 18/1 ton  
7204 41 99 00  ---- other € 25/1 ton  € 18/1 ton 
7204 49  -- other   
7204 49 10 00  --- fragmentized (shredded) € 25/1 ton  € 18/1 ton  
  --- Other   
7204 49 30 00  ---- in bundles € 25/1 ton  € 18/1 ton  
  ---- other   
7204 49 91 00  ---- in bundles € 25/1 ton  € 18/1 ton  
7204 49 99 00  ---- other € 25/1 ton  € 18/1 ton  
7204 50  - re-melting scrap ingots   
7204 50 90 00  -- other € 25/1 ton  € 18/1 ton  
 
Question 66 
Ukraine noted in its response to Question 40 of WT/ACC/UKR/131 that minimum indicative 
export prices were not enforced and a Presi dential decree of November 1994 was no longer 
valid.  We would welcome a commitment from Ukra ine that it upon accession it would not apply 
such minimum indicative export prices or appro val requirements in relation to export prices 
that do not meet the minimum indicative export price requirements. 
Answer:   
Ukraine takes note  
Question 67 
We appreciate Ukraine's intention to abolish the B and C Quotas for domestic refined sugar, 
and look forward to a positive outcome that can be noted in the Report.  We note that Ukraine 
has indicated in paragraph 272 that B and C quota s had never been set by  the Government.  We 
note a recent media report (November 1) that the Economy Ministry was considering 
establishing an A quota at 1.8 million tones,  and a B quota at 225,000 tons for the next 
marketing year.  Can Ukraine confirm this is th e case and indicate when it will address our 
concerns about restricting the amounts sold intern ally by individual sugar owners to the limits 
of the A quota and ensuring the B quota is supplied by individual owners. 
Answer:   
The issue of the imposition of domestic quotas is w ithin the competence of the Government following 
the submission from the Ministry of Agricultural Policy.  In accordance with the Government 
Resolution, the size of the A Quota imposed for the period from 1 September 2005, to 1 September 2006, is 1,790 thousand tons. No Quot a B was set, as well no decision have been taken 
with regard to the next marketing year.      WT/ACC/UKR/136 
 Page 25 
 
 
 C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Sanitary and Phytosanitary Measures Question 68 Amendments to paragraph 243.  The objective is to put national legislation in conformity with 
the SPS Agreement.  
243.  In pursuance of Presidential Decree No. 797 "On Additional Measures Towards 
Acceleration of Ukraine's WTO Accession" of 5 September 2001, key legislation 
such as the Laws "On Ensuring Sani tary and Epidemic Safety of the 
Population", "On Quality and Safety of Foodstuffs and Food Raw Materials", 
"On Protection of Population from Infectious Diseases", "On Veterinary 
Medicine", "On Responsibility of Enterprises for Violation on the Law on 
Veterinary Medicine", "On Quarantine of the Plants" and "On Amendments to 
the other Laws in Connection to the Adoption of the Law on Quarantine" as well as secondary legislation in this area , were being examined and amended as 
necessary to bring national legislatio n into conformity with international 
requirements and standards  in conformity with rights and obligations under the 
Agreement on Sanitary and Phytosanitary Measures ". 
Answer:  
Ukraine does not object to this proposal. 
Question 69 
Amendments to paragraph 248.  Language  must be consistent with SPS Agreement: 
− Harmonization refers to international standards, not to "terminology". 
− Traceability is not mentioned in the SPS Agreement.  
248.  The new Law on Veterinary Medicine  would address animal health issues.  
Provisions applicable to food products of  animal origin would be included in the 
Law on Safety and Quality of Food Products.  In addition to the explicit inclusion of provisions of the SPS Agreeme nt, the Law on Veterinary Medicine 
would include harmonization with international terminology, the introduction of 
international standards, recommendations and gu idelines in disease control, 
producer responsibility for ensuring the production and circulation of disease-
free animals and products, accreditation and authorization requirements for laboratories involved in the testing of  domestic and imported animals and 
products, monitoring of animals and f eed for residues of harmful substances, 
provisions enabling traceability of non
-edible products of animal origin,  
transparent import procedures, and applicat ion of risk-based border control.  If 
no international standards, guidelin es or recommendations were available, 
veterinary-sanitary measures would be introduced on the basis of a risk 
assessment conducted using the methodology of relevant international organizations.  If scientific evidence need ed to carry out the risk assessment was 
insufficient, veterinary-sanitary measures would be based on available 
information obtained from relevant international organizations, or on the measures used by other WTO Members.  The criteria for accepting equivalence WT/ACC/UKR/136 
Page 26  
 
 would be based on the guidelines contained in the Terrestrial Animal Health 
Code published by the Office of International Epizootics (OIE).  
Answer:
 
Ukraine does not object to this proposal. 
Question 70 
Amendments to paragraph 249.  We agree with the content of the sentence "In addition, the 
quality of food products would be determined according to (voluntary) standards and, as 
appropriate, minimum quality specifications define d in technical regulations".  However, it 
corresponds to the TBT Agreement and sh ould be placed in that section. 
249.  The new Law on Safety and Quality of Food Products would cover all food 
products regardless of content and stage of processing.  The Law would 
introduce major conceptual changes in the production and handling of food products by introducing best international practices encompassing a food-chain approach to safe food, including mandato ry implementation of HACCP systems 
in food producing enterprises.  Thus, the producer would become responsible for 
the suitability (safety and acceptability) of food for human consumption, 
enabling the State to reduce its role to  that of verifying the conditions and 
practices necessary to produce safe food .  In addition, the quality of food 
products would be determined accordin g to (voluntary) standards and, as 
appropriate, minimum qu ality specifications defined in technical regulations.  
The Law on Safety and Quality of Food Products would also include a clear 
delineation of authority between the Veterinary Department and the Sanitary 
Service, minimize the documentation re quirements for imported food products, 
streamline border control procedures based on the risk presented by a 
particular food product, establish requirements for the accreditation of all food control laboratories, and ensure broad acceptance of international standards 
and recommendations, to be adopted by the National Codex Alimentarius 
Commission of Ukraine.  Minor amendments to the Laws "On Ensuring Sanitary and Epidemiological Safety of the Population", "On Protection of the Population from Infectious Diseases", a nd "On Pesticides and Agrochemicals" 
would ensure that the new Law would be the only legislation in Ukraine governing the importation of food products.   
Answer:
 
Ukraine does not object to this proposal. 
Question 71 
Only those sanitary or phytosanitary measures based on the standards of those international 
organization recognized by the Agreement on Sanitary and Phytosanitary Measures –Codex 
Alimentarius, OIE and IPPC- do benefit from the presumption of consistency with this 
Agreement (in Article 3:2 of the SPS Agreement). Thus, basing measures on standards of other 
regional organizations (paragraph 250) or meas ures of other members (paragraph 248) does not 
relieve Ukraine from its obligations to carry out the risk assessment under Article 5 of that Agreement.    WT/ACC/UKR/136 
 Page 27 
 
 
 Add Paragraph 250 bis:   
250 bis The representative of Ukraine agreed that  only those sanitary  and phytosanitary 
measures based on international standard s arising from the Codex Alimentarius 
Commission, the OIE and the IPPC, would benefit from the presumption under paragraph 2 of Article 3 of the SPS Agreement.    
Answer:
 
Ukraine does not object to adding Paragraph 250 bis.   
Question 72 
Amendments to paragraph 253:  (i)  Use "sanitary and phytosanitary meas ures" instead of "sanitary requirements"; 
(ii)  Consistency must not be limited to the SPS and Import Licensing Agreements; 
(iii)  What is a "recognized foreign or international body"? If this sentence is really 
necessary it should apply to "any" of su ch "bodies", without prejudice to the SPS 
Agreement, so as to prevent any discriminatory practices. 
253.  [
The representative of Ukraine stated that from the date of accession to the 
WTO his Government would apply all its sanitary and phytosanitary measures  
requirements  consistently with the requirements of the WTO Agreements on , in 
particular with the Agreements on  Sanitary and Phytosanitary Measures and 
Import Licensing Procedures without recour se to any transitional arrangements.  
He added that [Ukraine would not require additional certification or sanitary registration for products which have been certified as safe for human use and 
consumption by recognized
 any foreign or international bodies, without  prejudice 
to provision in the Agreement on Sanitary and Phytosanitary Measures , and] 
Ukraine would ensure that from the date of accession its criteria for granting prior authorization or securing the required certification for imported products would be published and available to trad ers.  He confirmed that sanitary and 
other certification requirements in Ukraine were administered in a transparent 
and expeditious manner, and that his Government would be willing to consult with WTO Members concerning the effect of these requirements on their trade with a view to resolving specific problems.  The Working Party took note of these commitments.]
 
Answer:  
The abovementioned commitment language for the SPS section was proposed by WTO Members. 
The Ukrainian side didn't agree to the wording "rec ognised foreign or international bodies".  Thus, in 
the last version of the commitment wording "recogni sed foreign or international bodies" was replaced 
by "national competent bodies" to remove the am biguity associated with the term "recognized".  
Other suggestions are acceptable to Ukraine. WT/ACC/UKR/136 
Page 28  
 
 - Agricultural policies 
Question 73 WT/ACC/SPEC/UKR/1/Rev.10: Base period:  Ukraine proposes to take the ba se period 1994-1996 for the determination of the 
AMS. A more updated base period should be taken. 
Answer:
  
Ukraine's position remains unchanged- 1994-1996 should be the base period for the determination of 
AMS.  A number of recently-acceded countries that have a similar past and were transition economies 
had their AMS calculated using a base period that was closer to the commencement of their accession 
negotiations than to the completion of these negotia tions.  Moreover, because of special circumstances 
related to Ukraine's transition to a market econo my, recent levels of support for agriculture do not 
provide an accurate guide to Ukrain e's present and future support needs. 
Question 74 
Table DS:9, erroneous classification of certain programmes as non product specific.  Ukraine 
has classified following programm es as non product specific AMS: 
− Partial reimbursement to producers fro purchases of elite seeds. 
− State programme for selection of state breeding. 
− Benefits from budgetary loan for purchases of agricultural produce, un-repaid in due 
time.  
The first two programmes do not benefit agricul tural producers "in general", but only those 
producing the seeds or using the breeding animals. Accordingly they can not be classified as non 
product specific, as provided for in Article 1 (a ) of the Agreement on Agriculture and should be 
reclassified under product specific programmes, indicating the product which benefit from 
them. If this information is not available (Q uestion 8 in WT/ACC/SPEC/UKR/6/Add.5), some 
kind of approximation could be used to disaggreg ate these subsidies, such area sown or cattle 
stock. In no case lack of information should be used to justify inconsistencies with the 
Agreement. 
The programme of loans on agricultural produce indicates by its name that it is linked to 
agricultural production. If the subsidy has a link to production, then the type of production 
must be known and classified accordingly as product-specific. 
Answer:  
Ukraine will disaggregate two programmes "Partial re imbursement to producers fro purchases of elite 
seeds" and "State programme for selection of stat e breeding" using the value of production of 
products covered by these programmes.  As a resu lt two these programmes will be transported from 
DS:9 to DS:7 as product-specific and the Total AMS will be recalculated taking into account such 
changes.  
As regards the third programme, pursuant to th e Technical Note of the Secretariat, dated 
18 March 1996, WT/ACC/4 "Information to be prov ided on domestic support and export subsidies in 
agriculture", non-product-specific support includes, among others, input subsidies, credit and other 
financial assistance.  In accordance with these pr ovisions and Article 1 (a) of the Agreement on  WT/ACC/UKR/136 
 Page 29 
 
 
 Agriculture, Item 7 "Benefits from budgetary loan for purchases of agricultural produce, un-repaid in 
due time" in Table DS:9 indicates the value of th e benefit for agricultural producers resulting from the 
use of the budgetary loan un-repaid in due time to the State.  The budgetary loans were of a general 
nature and were not liked to specific types of prod ucts.  They were used for purchases of inputs for 
agricultural production.  By themselves the budgetary  loans were in favour of agricultural producers 
in general;  moreover, benefits from the use of the budgetary loans un-repaid in due time were non-
product–specific.  
Question 75 
Recent Law on Agriculture (WT/ACC/UKR/121).  Article 6 of Ukraine's Act on State Support 
of Agriculture, related to the governmental intervention in commodities, it is stated that:  
"In exceptional cases, the Agricultural Fund can ca rry out a commodity intervention if a threat 
emerges during one trading session that the equilib rium price may settle at a level that exceeds 
the maximal purchase price level or when th e Cabinet of Ministers of Ukraine issues a 
regulation in respect of sale of such objects of st ate price regulation, which is not connected with 
state price regulation (including sale from the state reserve.)" 
What are the elements to be taken into account  in order to define a case as exceptional?  
Answer:   
According to the Article 6 (d) of the Law On Stat e Support of Agriculture of Ukraine the Agricultural 
Fund can carry out a commodity intervention when:  
− A threat emerges during one trading session that the equilibrium price may settle at a level 
that exceeds the maximal purchase price level; and 
− The Cabinet of Ministers of Ukraine issues a re gulation in respect of sale of such objects of 
state price regulation, which is not connected with state price regulation (including sale from 
the state reserve). 
Question 76 
Which is the agency that determines so?  
Answer:    
The Agrarian Fund of Ukraine. Question 77 Which is the criterion used to infer that that exceptional condition will lead to an excess in the 
purchase at the maximum price?   
Answer:
   
The exceptional conditions are listed in the answer to th e first part of the question.  They do not lead 
to an excess in the purchase at the maximum price.  WT/ACC/UKR/136 
Page 30  
 
 Question 78 
Annex 1 of document WT/ACC/SPEC/UKR/6/Add. 6 informs on the draft State Budget of 
Ukraine.  Could Ukraine clarify the cu rrency and units of this information? 
Answer:
   
The information provided in Annex 1 of doc ument WT/ACC/SPEC/UKR/6/Add.6 is set out in 
thousands of Ukrainian hryvnias.  The exchange rate for 1 December 2006 was UAH 5.05 for US$ 1.  
Question 79 
Export subsidies and SSG:  We welcome Ukrain e's commitments not to apply these measures. 
Paragraph 310: This paragraph should also expr ess the commitment of Ukraine to comply with 
the Agreement on Agriculture. Fo llowing amendment is proposed:  
310. The representative of Ukraine agreed that, upon Ukraine's accession, his 
country would bind its agricultural export  subsidies at zero in its Schedule of 
Concessions and Commitments for Goods,  and would not maintain or apply 
agricultural export subsidies as defined in paragraphs 1 ( а)-(f) of Article 9 of the 
Agreement on Agriculture.  He also confirmed that Ukraine would not seek 
recourse to the special safeguard provisions (SSGs) of Article 5 of the Agreement 
on Agriculture.  Furthermore he agreed that Ukraine will comply with all other 
provisions of the agreement on agriculture and as well as with other WTO Agreements.  
Answer:
  
Ukraine has no objections to the proposed language, but  suggests restating this paragraph as follows 
in case that the questions in this sec tion deals exactly with agriculture: 
310.  The representative of Ukraine agreed that, upon Ukraine's accession, his country 
would bind its agricultural export subsidies at zero in its Schedule of Concessions and 
Commitments for Goods, and would not ma intain or apply agricultural export 
subsidies as defined in paragraphs 1 ( а)-(f) of Article 9 of the Agreement on 
Agriculture.  He also confirmed that Ukra ine would not seek recourse to the special 
safeguard provisions (SSGs) of Articl e 5 of the Agreement on Agriculture. 
Furthermore he agreed that Ukraine will co mply with all other provisions of the 
agreement on agriculture and as well as with other WTO Agreements . 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME - GENERAL 
- Geographical indications, including appellations of origin 
Question 80 What are the requisite characteristics for an indication of origin to be considered as 
"qualified"?  WT/ACC/UKR/136 
 Page 31 
 
 
 Answer:    
In accordance with the Law of Ukraine "On the Pr otection of Rights to Indication of Origin of 
Goods," a qualified indication of origin of goods m eans the term covering (incorporating) such terms: 
− appellation of origin of goods; and 
− geographical indication of origin of goods. 
Appellation of origin of goods means a geographi cal place name used for marking of goods 
originating from the indicated ge ographical place and having particular properties that are exclusively 
or essentially due to the natural conditions specific fo r that geographical place or to the combination 
of these natural conditions with human factor specific for this geographical place. 
Geographical indication of origin of goods means geographical place name used for marking of goods 
originating from that geographical place and ha ving certain properties, reputation or other 
characteristic features that are essentially due to na tural conditions specific for that geographical place 
or to the human factor or to the combinati on of these natural conditions with human factor. 
The legal protection is provided for appeal of orig in of goods, for which the following conditions are 
performed: 
− it is the name of the geographical place from which goods originate; 
− it is used as a name of goods or as a component part of that name; 
− in the geographical place specified by that name the specific natural conditions or the 
combination of the natural conditions and human factor providing particular properties to the 
goods in comparison with similar goods from the other geographical places exist objectively; 
− the goods marked with that name have resp ective properties that are exclusively, or 
essentially, due to the natural conditions specific for that geographical place or the combination of these conditions and human fact or specific for that geographical place; and 
− production (extraction and processi ng of goods marked with this name are performed within 
the designated geographical place. 
The legal protection is provided for geographical indi cation of origin of goods for which the following 
conditions are performed: 
− it is the name of the geographical place from which that goods originate; 
− it is used as a name of the goods or as a component part of that name; 
− in the geographical place specifi ed by that name there are the specific conditions and/or 
human factor providing the good with the certain properties or other characteristics; 
− the goods marked with that name have certain properties, reputation or other characteristics 
that are mostly due to the natural conditions  and/or human factor specific for that 
geographical place; and 
− at least the main component of the goods marked  with that name is produced and/or processed 
within the boundaries of the designated geographical place. 
Question 81 
Are there two categories of protection, one for "q ualified indications of origin" and another for 
geographical indications? WT/ACC/UKR/136 
Page 32  
 
 Answer:
   
In accordance with the Law of Ukraine "On the Pr otection of Rights to Indication of Origin of 
Goods," the concept of "qualified indication of or igin of goods" includes the term "geographical 
indication." In essence, the concept of "qualified indi cation of origin of goods" and the concept of 
"geographical indication" are identical. Therefore, there is a single regime of legal protection for 
qualified indications of goods origin  and for geographical indications. 
Question 82 
If the answer to previous question is "yes", please specify the difference among those two. 
Answer:    
Please see previous response. Question 83 What requirements the "qualified origin indi cations" shall meet to be registered?  
Answer:
   
In addition to meeting the definition of "qualified indications of goods origin" (set out above), an 
indication must also not fall into any of the categor ies of deniable indications.  Registration may be 
refused for an otherwise eligible qualified origin indication if the indication contradicts the public 
order, principles of humanity and morality; if it is  a generic name of goods; if it accurately indicates a 
geographical place of goods production, but is liable to mislead consumers as to the true place of 
origin; or if it is a name of a kind of plant or  a breed of animal, and thus may mislead consumers 
about the actual origin.  Registration also requires that a complete and proper application package be 
submitted by a party or parties entitled to register the indication.  
Question 84 What are the grounds of cancellation of " qualified origin indications" registration? 
Answer:
   
A qualified indication of origin may be cancelled if  the indication proves not to have qualified for 
registration, or invalidated if the registration is proven to have been perform ed in violation of the 
law's provisions covering eligibility, ineligibilit y, and registration of indications.  Moreover, 
registration may be discontinued with respect to a qualified indication of origin which has lost its 
characteristics which made it eligible for registrati on; where such an indication becomes generic; or 
where an indication associated with a geographical place in a foreign State ceases to be protected in 
that State.  The right to use a qualified indi cation of origin may be discontinued in other 
circumstances, including liquidation of an entity, or death of a person, who holds a registration non-
payment of maintenance fees by a registrant etc.  
Question 85 
Can the third countries protect their geographic indications in Ukraine?  WT/ACC/UKR/136 
 Page 33 
 
 
 Answer:    
In accordance with the Law of Ukraine "On the Pr otection of Rights to Indication of Origin of 
Goods," foreign and Stateless persons shall have e qual rights and obligations with the citizens of 
Ukraine provided by this Law in  accordance with international tr eaties of Ukraine for which the 
approval of being mandatory is issued by the Verkhovna Rada of Ukraine. 
Foreign and Stateless persons in relations with th e central executive authority on legal protection of 
intellectual property exercise their rights through repr esentatives in the matters of intellectual property 
(patent attorney). 
Pursuant to the provisions of the said Law, the lega l protection for the qualified indication of origin of 
goods related to a geographical location in  a foreign State may be provided, if: 
− Ukraine has a relevant treaty with a foreign State on mutual protection of this type of 
indication of origin of goods; and 
− this indication is protected in the relevant foreign State. 
It should be noted that the Ukrainian Party h as developed a draft law of Ukraine on introducing 
changes to laws on intellectual property that ta kes into account the requirements of the Council 
Regulation (EEC) No. 2081/92 of 14 July 1992 on th e protection of geographical indications and 
designations of origin for agricultural products and foodstuffs. Pursuant to this draft law, the above 
rule has the following language:  
"Is not eligible for acquiring rights to the ge ographical indication related to a geographical 
place in a foreign State, if: 
− the rights to this geographical indication are not protected in the relevant foreign 
State; 
− the laws of the foreign State do not a llow for the protection of geographical 
indications of Ukraine." 
Question 86 Paragraph 329:  Additional clarif ications as to "qualified origin indications" are required.  May 
the elements of the marks owned by persons having a right to use such indications be 
unprotected? 
Answer:
   
In accordance with the Law of Ukraine "On the Protection of Rights to Marks for Goods and 
Services," signs shall not be registered as marks if  they are identical or misleadingly similar to 
qualified indications of the origin of goods protected in accordance with the Law of Ukraine "On the 
Protection of Rights to Indication of Origin of Goods."  The said signs may be used only as non-protected elements of the marks of the persons who have the right to use the said indications.  
Question 87 
Paragraph 330:  What would happen if the geogr aphic indication presented for registration is 
identical or similar to an  already registered mark? WT/ACC/UKR/136 
Page 34  
 
 Answer:
   
In accordance with the Law of Ukraine "On the Pr otection of Rights to Indication of Origin of 
Goods," a mark for goods and services registered in Ukraine and comprising only of that indication or 
of the claimed indication as an element, can not be  considered a ground for refu sal in granting of legal 
protection for the claimed appellation of origin or the claimed geographical indication of origin of 
goods. 
Question 88 
Paragraph 330:  Will they co-exist or will th e registration of the mark be cancelled?  
Answer:    
It was noted above that a mark for goods and ser vices registered in Ukraine and comprising only of 
that indication or of the claimed indication as an el ement, can not be considered a ground for refusal 
in granting of legal protection for the claimed ap pellation of origin or the claimed geographical 
indication of origin of goods.  
It should be noted that legislation of Ukraine in the field of the protection of rights to trade marks and 
indications of origin of goods does not stipulate such a ground for invalidation of rights to a trade 
mark as registration of a geographical indication similar or identical to such trade mark. 
However, in accordance with part six of Article 16 of the Law of Ukraine "On the Protection of 
Rights to Marks for Goods and Services," the exclus ive right of the certificate owner to prohibit other 
persons from using the registered mark without his consent does not cover, inter alia , the use of a 
qualified indication of origin of  goods protected in accordance with the Law of Ukraine "On the 
Protection of Rights to Indication of Origin of Goods."   
Question 89 Paragraphs 331-333 - Additional qualifications are required as to: 
− How the national treatment will be applied if the requirements for registration of 
geographic indications are different for Ukra inian applicant and applicant from the 
third countries?  
− Applying MFN Treatment. 
Answer:
   
The indications law's general princi ple, enunciated at Article 5, is that foreigners and individuals 
without citizenship shall have equal rights with Uk rainian entities.  Differences specifically related to 
registration requirements are limited to the requireme nt, at Article 10, that foreign applicants must 
include documentation of protection in the relevant foreign State of the subject indication and of the 
applicant's right to use that indi cation, while a Ukrainian applicant must instead submit evidence that 
it produces goods related to the indication; a conclu sion of an authorized body relating to the goods' 
special characteristics and their connection to speci fied geographical origin; and a conclusion of an 
authorized body concerning boundaries of the relevant geographical place.  
Laws of Ukraine in the field of intellectual property do not contain any restrictions on the application 
of the MFN Treatment. 
__________