RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/130 
15 June 2005 
 (05-2504) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Additional Questions and Replies  
 
 
 The following submission, dated 10 June 2005, is  being circulated at the request of the 
Delegation of Ukraine.   
_______________ 
  WT/ACC/UKR/130 
 Page i 
 
 
 TABLE OF CONTENTS 
 
 
II.  ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......2  
- State Ownership and Privatization .........................................................................................5  
- Pricing Policies ............................................................................................................... ...........8  
- Competition Policy............................................................................................................. .....17  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................17  
IV.  POLICIES AFFECTING TRADE IN GOODS ...................................................................18  
- Trading Rights ................................................................................................................. .......18  
A.  IMPORT REGULATIONS....................................................................................................20  
- Ordinary cust oms duties ........................................................................................................ 20 
- Other duties and charges....................................................................................................... .20 
- Fees and charges for services rendered.................................................................................21  
- Application of internal taxes to imports ...............................................................................23  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............27  
- Customs valuation.............................................................................................................. .....34  
- Rules of origin ................................................................................................................ .........35  
- Other customs formalities ...................................................................................................... 35 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................36  
B. EXPORT REGULATIONS ...................................................................................................38  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........38  
- Export rest rictions ............................................................................................................ ......39  
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................44  
- Industrial policy, including subsidies....................................................................................44  
- Technical barriers to trade, standards and certification.....................................................47  
- Sanitary and phytosanitary measures...................................................................................49  
- Trade-related investment measures ......................................................................................53  
- State-trading entities......................................................................................................... ......53  
- Free zones, special economic areas........................................................................................53  
- Government-mandated counter-trade and barter...............................................................54  
- Agricultural policies.......................................................................................................... ......54  
- Trade in ci vil aircraft........................................................................................................ ......57  WT/ACC/UKR/130 
Page ii  
 
 V.
 TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................57  
VIII.  TRADE AGREEMENTS .......................................................................................................59  
 
  WT/ACC/UKR/130 
 Page 1 
 
 
 II.  ECONOMIC POLICIES 
- Foreign Exchange and Payments Question 1 We thank Ukraine for its reply to Question 1 of document WT/ACC/UKR/126 and 
paragraph 19 of WT/ACC/SPEC/UKR/5/Rev.2.  We  would note that Ukraine has accepted the 
obligations of Article VIII of the Agreement of the IMF which requires it to maintain an 
exchange system free of restrictions on p ayments and transfers of current international 
transactions.  In light of this commitment, we remain concerned with the five-business-day 
restriction imposed on the transfer of foreign curren cy and the limitations this places on trade.  
The goals of monetary and credit policies, macro -economic equilibrium and the prevention of 
money laundering can be furthered through means other than through onerous restrictions that 
impact largely on the financing of current international transactions. 
We reiterate our request for the inclusion in the Draft Report of details of how this requirement 
will be eliminated by the date of accession. 
Answer:
 
This provision does not run counter to GATT requirements as it does not in any way restrict rights of 
residents engaged in foreign econom ic activity and does not affect an ability to meet timeframes for 
payments for goods as set under foreign economic Agre ements and contracts.  The rules of foreign 
exchange purchase at the domestic currency mark et established by the National Bank of Ukraine 
make it possible for each and any business entity to purchase, without any impediments, foreign exchange within five days prior to the date of  payment which underlies equal opportunities of access 
to purchasing foreign exchange. 
Thus, the above provision in one of the mechanisms aimed solely at stimulation of financial discipline 
of business entities and at prevention from misuse of  foreign exchange purchased at the interbank 
currency market of Ukraine and potential speculative operations with it that may lead to unreasonable 
pressure on hryvnia's exchange rates vis-à-vis  foreign currencies. 
Question 2 Document WT/ACC/UKR/5/Rev.2 states that Uk raine intends to retain the current foreign 
exchange surrender requirement of 50 per cent and other requirements on payments, e.g., an individual licence for import prepayments with delivery terms exceeding 90 days, and short time limits on payments to non-residents, that  could have a negative impact on importers. 
However, we are encouraged by press reports th at the Cabinet of Ministers has asked the NBU 
to do away with the surrender requirement.  Please provide additional clarity on Ukraine's 
plans for reducing and eventually elimin ating these "temporary" restrictions, and a 
commitment for the progressive elimination of this restriction. 
Answer:
 
NBU Resolution No. 101 dated 31 March 2005 eliminated the foreign exchange surrender 
requirement of 50 per cent. 
Article 6 of the Law of Ukraine "On the Proce dure for Conducting Payments in Foreign Currency" 
sets out a list of the types of contracts, which ma y objectively require for the fulfilment thereof the WT/ACC/UKR/130 
Page 2  
 
 implementation terms exceeding 90 calendar days.  The possibility of weakening or eliminating the 
noted restriction by way of obtaining the individual licence of the National Bank of Ukraine to extend the legally established term of payments is also envisaged. Besides that, if the terms extension was 
caused by the force-major circumstances, the action of  the above mentioned terms shall be terminated 
for a period of action of the force-major, and sha ll be renewed from the day following the date of 
termination of such circumstances. 
Question 3 
The NBU's Resolution No. 482 of October 2004 requires foreign investors to open two bank 
accounts in Ukraine, first depositing investme nt funds in a foreign currency account, then 
converting the funds into a Hryvnia and depositi ng them in a second account.  Only then can 
the Hryvnia be transferred to the target of the investment.  The same process must be followed 
in the reverse to repatriate investment earnings.  This process seems to disadvantage foreign 
investors because it is burdensome and it incurs transaction fees. 
Please describe Ukraine's plans and timing fo r the elimination of this cumbersome and 
discriminatory procedure. 
Answer:
 
Pursuant to the Resolution of the Board of the National Bank No. 154 of 29 April 2005, the 
Resolution of the National Bank  No. 482 lost eff ect.  Thus, the above mentioned procedure was 
eliminated. 
- Investment Regime 
Question 4 
Paragraph 21:  Please outline the local content provisions of the March 2004 Law "On 
development of Ukraine's Automobile Industry."  What firms are currently enjoying benefits 
under this law? 
Answer:   
The Law of Ukraine "On Amendment of the Law of Ukraine "On the State Budget for 2005" and 
Some Other legislative Acts" No. 2505-IV of 25 March 2005 eliminated the tax privileges for 
automobile producers and established the equal exci se duty rates for the domestic and imported motor 
vehicles in line with the national treatment regime .  Connected with the elimination of the above 
mentioned privileges, provisions of Article 4 of the Law of Ukraine "On Stimulation of Automobile 
Manufacture in Ukraine", which were the basis for granting the above mentioned privileges, regarding 
the determination of the country of origin of automobiles, do not actually apply currently.  Along with 
this, in order to legislatively harmonize the pr ovisions of this Law with WTO requirements, the 
Government has approved on 26 May 2005 the Draf t Law "On Amendment of the Law of Ukraine 
'On Stimulation of Automobile Manufacture in Ukraine' " as to the elimination of Article 4.  The Draft was introduced into the Verkhovna Rada of Uk raine.  Ukraine will additionally inform on the 
adoption of this Draft. 
Question 5 Please indicate the legal authority to continue benefits under the 1997 Law, since suspended, for 
the closed joint stock companies "Lviv Automo bile Plant" and "Zaporishshia Automobile 
Plant."  WT/ACC/UKR/130 
 Page 3 
 
 
 Answer:           
The Law "On Introduction of Amendments to the Law of Ukraine on State Budget of Ukraine for 
2005 and Some Other Legislative Acts of Ukraine"  dated 25 March 2005 eliminated the tax privileges 
for car producers and fixed the equal rates of excise duty for domestic and imported vehicles in 
accordance with national treatment principle. 
Question 6 Paragraph 23:  Please clarify how Ukraine will bring its current provisions concerning the use 
of promissory notes to pay the VAT into conformity with GATT Article III. 
Answer:
 
Provisions of Article 11.5 of the Law "On Valu e Added Tax" of 3 April 1997 No. 168-97  which 
prohibited the possibility for foreign companies to  use promissory notes for the payment of VAT, 
were cancelled according to the Law of Ukraine "On the amendments to the Law of Ukraine "On the 
State budget of Ukraine on 2005 year" and some other laws and regula tions" of 25 March 2005 
No. 2505-IV.  Thus, the discrimination of foreign companies on the use of promissory notes for the 
payment of VAT is eliminated.  
Question 7 Paragraph 20:  Could the Ukrainian authorities elaborate on the scope of the Law "On 
Ownership of Property"?  In particular, does it al so allow foreign investors to own land, and if 
yes, under what conditions, if any? 
Answer:
 
According to Articles 81 and 82 of the Land Code No . 2768-III of 25 October 2001, foreign investors 
can acquire the right of ownership for land pl ots (of non-agricultural designation only) under a 
contract of purchase-and-sale, gift, exchange, or ot her civil-law Agreements, in case of registering the 
land plot by its owners into the statutory fund, i nheritance, appearance of other bases provided for by 
the legislation.  The non-agricultural land plots may be sold to foreign legal entities in case of 
purchase of immovable property and construction of  sites for carrying out the business activity in 
Ukraine. 
Question 8 
Paragraph 21 suggests that local content requirem ents had been eliminated from the Law "On 
Stimulation of Automobile Manufacture in Ukrain e" in 2001.  At the same time, the end of 
paragraph 21 suggests that the "new law"  contained local content requirements.  
Why have the local content requirements been rei ntroduced with the entry into force of the Law 
"On Development of Ukraine's Automobile industry"? 
Are there any plans to eliminate perman ently these local content requirements?  
Could the authorities also elaborate further on the extent of the present local content 
requirements?  
Does it affect only the automotive sector? WT/ACC/UKR/130 
Page 4  
 
 Answer:
  
The Law of Ukraine No. 2505-IV of 25 March 2005 eliminated the tax privileges for automobile 
producers and established the equal excise duty rates fo r the domestic and imported motor vehicles in 
line with the national treatment regime. Connected  with the elimination of the above mentioned 
privileges, provisions of Article 4 of the Law of Ukraine "On Stimulation of Automobile Manufacture 
in Ukraine", which were the basis for granting the above mentioned privileges, regarding the 
determination of the country of origin of autom obiles, do not actually apply currently.  Along with 
this, in order to legislatively harmonize the pr ovisions of this Law with WTO requirements, the 
Government has approved on 26 May 2005 the Draf t Law "On Amendment of the Law of Ukraine 
'On Stimulation of Automobile Manufacture in Ukrain e'" as to the elimination of Article 4.  The Draft 
was introduced into the Verkhovna Ra da of Ukraine. Ukraine will a dditionally inform on the adoption 
of this Draft. 
Question 9 
Paragraph 22:  What is the precise legal rel ationship between the Law "On the Regime of 
Foreign Investment" and the provisions of BITs concluded by Ukraine relating to investment 
protection? 
Answer:   
Pursuant to Article 6 of the Law of Ukraine "On the Regime of Foreign Investment" No. 93/96 of 
19 March 1996, relations appearing in connection with the foreign investment in Ukraine are 
regulated by this Law, other legislative acts and In ternational treaties of Ukraine.  If the International 
treaty of Ukraine establishes the ru les other than those envisaged by  the Ukrainian legislation on 
foreign investment, the rules of international treaty will apply. 
Question 10 
Paragraph 23:  The second sentence suggests that  the payment of import duty on equipment 
imported as foreign investment could be deferr ed up to 30 calendar days against a promissory 
note issued by the company and would not be collected if the property was recorded on the 
company's balance sheet within the deferred p ayment period.  Paragraph 23 also suggests that 
the measure did not apply to goods imported  by enterprises with foreign investment.  
Could the authorities explain the apparent cont radiction between those two statements and 
indicate why discrimination is presently made against companies with foreign investment?  
Are the authorities ready to commit themselves on a precise timetable for the elimination of this 
discrimination? 
Answer:  
The above mentioned issue is regulated by the Law of Ukraine "On Amendment of the Law of 
Ukraine "On the State Budget for 2005" and So me Other Legislative Acts" No. 2505-IV of 
25 March 2005, which establishes the equal rules for all business agents (national and foreign) 
regarding the importation of goods into the territory of Ukraine. 
Question 11 More generally, could the authorities elaborate on the respective competence of the national and 
sub-national authorities with respect to the investment regime?  WT/ACC/UKR/130 
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 In particular, if the national authorities were to further liberalize the investment regime, would 
its implementation become compulso ry for sub-national entities?  
Would there be any exceptions? 
Answer:  
According to the Constitution of Ukraine, any decisions of the local self-government bodies 
normative and legal acts of the Verkhovna Rada of th e Republic of the Crimea and Decisions of the 
Council of Ministers of the republic of the Crimea can not contradict the Constitution of Ukraine. 
In case a decision is taken regarding the liberalization,  it is obligatory for fulfilment by authorities at 
all levels of the government. 
Question 12 
Paragraph 25:  To avoid legal uncertainty with regard to prohibited sectors for foreign 
investments we would also appreciate a negati ve list containing the forbidden investment 
activities. 
Answer:  
According to Article 4 of the Law of Ukraine "On Investment" No. 1560-XII of 18 September 1991, 
any property may be the objects of investment activity, including the following: key assets and 
circulating assets in all areas and sectors of the economy, securities, purpose savings, science and 
technology products, intellectual values, other object s of property, and also – property rights.  
However, investments are prohibited into objects,  the creation and use of which does not correspond 
to the requirements of sanitary and hygienic, ra diation, ecological, architectural and other norms, 
established by the legislation of Ukraine, and also - violates the legally protected rights and interests 
of citizens, legal entities and the State.  There is no list containing such objects. 
Question 13 
Paragraph 26:  we welcome the equal applicat ion of Article 4 of the Law "On Investment 
Activities" to both foreign and domestic in vestors (National Treatment).  However, the 
provision (Article 4) contains an open wording (... interests and rights of citizens ...) that leaves 
much room of legal uncertainty.  Please specify the meaning of interests and rights of citizens.  
Answer:  
"Interests and rights of citizens", mentioned in Article 4 of the Law "On Investment" mean those 
interests and rights of citizens, adherence to whic h is guaranteed by the legislation of Ukraine (for 
instance, the rights to intellectual property, private property, etc.). 
- State Ownership and Privatization 
Question 14 
We appreciate the additional information provided in this section on the state-owned sector in 
Ukraine.   
We still lack information on the trading activi ties of the major state-owned enterprises which 
have not yet privatized, and the extent to which any of these firms trade on behalf of the state. WT/ACC/UKR/130 
Page 6  
 
 Answer:
 
Major State-owned enterprises of Ukraine (as of May 2005)  
Major State Enterprises Import/Export of Goods Trade on Behalf of the 
State (Yes/No) 
State concern "Ukrspyrt"  Export of ethyl spirits.    No 
State Corporation 
"Energorynok" Export/import of el ectric energy. Yes 
National joint-stock 
company "Naftogas of 
Ukraine" Export/import of oil and gas products and 
transportation services. Yes 
State joint-stock company 
"Khlib Ukrajyny" Acts as an agent and as a seller at grain market 
including state reserve of grain. Yes 
National joint-stock  
company 
"Ukragroleasing" Organization and control over leasing operations in 
agro-industrial complex that are performed pursuant 
to the Agreements, concluded by the directorate of 
the state leasing fund, including, with regard to funds reimbursement to this fund. 
Organization of authorized servicing of agricultural   
machinery, tractors, auto mobiles and equipment. 
Organization of trade for carrying out settlements for 
supplied agricultural machinery, tractors, 
automobiles, equipment and spare parts. Yes 
Public corporation 
"Ukrtransnafta" Subsidiary of "Naftogas of Ukraine" No 
Public corporation 
"Ukrnafta" Subsidiary of "Naftogas of Ukraine" No 
Subsidiary company 
"Ukrgasvydobuvannya" of  
joint-stock company 
"Naftogas of Ukraine" Subsidiary of "Naftogas of Ukraine" No 
Subsidiary company 
"Ukrtransgas" of  joint-
stock company "Naftogas of 
Ukraine" Subsidiary of "Naftogas of Ukraine" No 
Subsidiary company "Gas 
of Ukraine" of  joint-stock 
company "Naftogas of 
Ukraine" Main tasks of the state company (SC), Gas of 
Ukraine" are: selling natural and liquefied gas to 
population, communal-general utilities, budgetary 
organizations, as well as industrial consumers, power generating companies of the Ministry of Fuel and 
Energy, entrepreneurial entities of the country; 
providing for gas settlements; operation and development of gas distribution networks, facilities 
and equipment. Yes 
State company "National 
Energy Company "Ukrenergo" Management of state power stations.  No trading 
activities. No 
State company "National 
Atom Energy generating 
company "Energoatom" Import and export of nuclear materials. Yes 
Ukrainian State Center of 
specialized carriages 
exploitation "Ukrspetzvagon" The subsidiary of the State owned company 
"Ukrzaliznytsia". 
Rendering of transport-dispatch services in course of transportation of export, import, transit and other 
consignments.  No 
Urkzaliznytsia Transport services. No trading activities. No  WT/ACC/UKR/130 
 Page 7 
 
 
 Major State Enterprises Import/Export of Goods Trade on Behalf of the 
State (Yes/No) 
State territorial Branch Company "South-Western 
Railways" Subsidiary of Ukrzaliznytsia. No trading activities. No 
Lviv State Railway Subsidiary of Ukr zaliznytsia. No trading activities. No 
Odessa Railway Subsidiary of Ukrza liznytsia. No trading activities. No 
South Railway Subsidiary of Ukrza liznytsia. No trading activities. No 
State Company 
"Pridniprovska Railway" Subsidiary of Ukrzaliznytsia. No trading activities. No 
State Company 
"Donetzkaya Railway" Subsidiary of Ukrzaliznytsia. No trading activities. No 
Concern of radio, radio 
connection and television Broadcasting on televisions and radio programs. No 
trading activities    No 
Ukrainian State Company 
of Post "Ukrposhta" Postal connection.  No trading activities. No 
National joint-stock 
company " Coal of Ukraine" Export/import of coal products. Yes 
State company 
"Ukrekokomresursy" Collection and utilization of packing and garbage. 
No trading activities. No 
Ukrainian State Corporation 
"Ukrzakordonnaftogazbud" Export/import of gas, oil and oil products. Yes 
Leasing company 
"Ukrtransleasing" Leasing services 
No trading activities No 
State company 
"Ukrspetzexport" Export and import of products and services, intended 
for military and special purposes. Yes 
State company 
"Ukrinterenergo" Export/import of goods and services in energy 
sector:  full sets of energy equipment; energy carriers 
and electricity. Yes 
National joint stock 
company "Nadra Ukraine" Geological exploration. 
No trading activities. No 
 
According to official statistics, the export of goods from the following 30 major state companies accounted for 2 per cent of total export and 14 per cent of total import in 2004. 
Question 15 
Please provide more information on the Agricultural Fund.  Is it a firm or an arm of the 
Ukrainian government?  Does it have the exclusiv e right to purchase or to sell grain?  What 
sorts of services are provided by the 465 state- owned agricultural entities not subject to 
privatization?  The initial information on agricultural entities "not subject to privatization" provided in the response to Question 12 in WT/ACC/UKR/118 should be expanded to identify 
them and to indicate in substantive terms what so rt of enterprises are included and their role in 
Ukraine's agricultural regime, e.g., "grain handling" per the response to Question 12. 
Answer:
 
The Agricultural Fund is a specialized state instituti on.  It has the exclusive right to purchase and sell 
for the purpose of state reserves the following: WT/ACC/UKR/130 
Page 8  
 
 Goods Subject to State Price Regulations
 
Ukrainian Foreign Economic 
Activity Commodity 
Classification (UFEACC) Code Commodity 
1001  Wheat and mixture of wheat and rye (meslin) 
1002 00 00 00  Rye 
1003 00  Barley 
1004 00 00 00  Oats 
1005  Corn 
1101 00  Wheat flour or flour made of wheat-and-rye mixture (meslin) 
1201 00  Soybeans, un-milled only 
1204 00  Linseeds, un-milled only 
1205 00  Rapeseeds, un-milled only 
1206 00  Sunflower seeds, un-milled only 
1210  Hop cones, fresh or dried, milled or un-milled 
1701 12  Sugar made of sugar beets 
 
- Pricing Policies 
Question 16 Paragraph 37:  Given the rather extensive use of price controls in Ukraine, are there any plans 
to reduce the scope of these price controls in near  future, notably in the utilities sectors as well 
as in the areas of consumer goods and services where they are applicable? 
Answer:
 
Currently, there exists 18 categories of goods, which are subject to price control, as was indicated in 
Table 3 of WT/ACC/SPEC/UKR/5/Rev.2.  The price control in utilities services area (that is, where 
the natural monopolies exist) is subject to regulation by the State. 
Question 17 
Paragraph 41:  If minimum import prices are no t being applied to imports, and will not be in 
the future, please confirm that Ukraine intends to  repeal such provisions in the new law on "On 
State Support of Agriculture in Ukraine," whic h appears to contain a provision for minimum 
prices that will be applied to imported goods.   
We seek that the commitment in this section incl udes confirmation of the information provided 
in paragraph 41. 
Answer:   
Ukraine confirms the obligations designated in paragraph 41.  
Question 18 
We thank Ukraine for the replies provided to Questions 2-12 of WT/ACC/UKR/126 and for the 
information provided in paragr aphs 36-44 and Table 3 of WT/ACC/SPEC/UKR/5/Rev.2.  We 
appreciate the clarifications and additional information provided.  Considerable progress has 
been made.  However, we would app reciate some further clarifications.  WT/ACC/UKR/130 
 Page 9 
 
 
 Ukraine's support prices for sugar apply to intern al sales of refined (or "white") sugar of HS 
subheading 1701.99.  However, the support prices are notified incorrectly in Table 3 on page 142 as applying to raw b eet sugar of subheading 1701.12. 
This entry needs to be amended to be based on the correct HS code, of subheading 1701.99. 
Answer:
  
By indicating code 1701.12 in Table 3 on page 142, Ukraine wanted to underline that minimum prices 
(or support prices) apply to sugar produced from suga r beets rather to the whole of white sugar.  
These prices were introduced with the goal of protec tion of domestic sugar beets producers.  In case 
that the code is changed for 1701. 99, the reality will be distorted.  
Question 19 
We refer to Ukraine's statement in its reply to tiret 5 of Question 3 of WT/ACC/UKR/126  that, 
since 2000, no administrative prices for refined sugar have been applied by means of official 
intervention. 
We would appreciate clarification of the consistency of this statement with Ukraine's 
notification of a total of US$ 465.3 million of support for sugar beets in 2001 and 2002 through 
the application of administrative prices for refi ned sugar (Supporting Table DS:5 on page 44 of 
WT/ACC/SPEC/UKR/1/Rev.9 refers).  We would note that in the context of its domestic support notification for 2000-2002, Ukraine indica tes that the applied administered prices for 
refined sugar were US$ 441 per ton in 2001 and US$ 445 per ton in 2002, and would ask how Ukraine would reconcile this information with its statement in its reply to tiret 5 of Question 3 
of WT/ACC/UKR/126. 
Answer:
  
Support Table DS:5 reflects market price support to sugar beets that is provided through the 
mechanism of setting administrative prices to s ugar. Even without official interventions 
(procurements), the set level of administrative pri ces affects the market situation and supports the 
market price. As a resu lt, the domestic market price was US$ 140 higher than the external reference 
price in 2001 and US$ 163 higher in 2002. The e ligible production covers the total sugar output 
produced from sugar beets.     Minimum prices (or support prices) to sugar and s ugar beets were introduced in 1999 by the Law of 
Ukraine On State Regulation of Sugar Productio n and Distribution, No. 758 of 17 June 1999. 
Question 20 
Have administrative prices for refined sugar been applied by means of official intervention since 
2000? 
Answer:
  
Following 2000, administrative prices were being set as the lower cap of prices at the market that 
apply to entering into sale-purchase agreements at th e domestic market and are used to ensure the 
profitable production of sugar beets. No offi cial interventions have been exercised. WT/ACC/UKR/130 
Page 10  
 
 Question 21 
If administrative prices for refined sugar since 2000 have not been applied by means of official 
intervention, exactly how were they applied over this period? 
Answer:
  
Administrative prices for refined sugar notified by  Ukraine were applied by means of establishing 
minimum support prices since 2000.  The minimum pr ices of refined suga r within quota A were 
US$ 441 per tonne on 2001 and US$ 445 per tonne in 2002.  There was no official intervention since 2000.  The world experience and practice suggest that th e mechanism of setting minimum process of support 
to a producer does not inevitably bring about official interventions.  
Question 22 
We thank Ukraine for its statement, in its rep ly to tiret 4 of Question 3 of WT/ACC/UKR/126, 
that minimum prices for domestic sugar produ ced from domestic beets determine the overall 
level of sugar prices in Ukraine.  We would appreciate more information on how mandatory 
minimum prices for domestic sugar produced from  domestic beets are applied, in particular 
are: 
- sugar producers prohibited from selling sugar  at below the mandatory minimum price? 
- other sugar owners prohibited from selling sugar at below the mandatory minimum 
price? 
- intending purchasers of sugar prohibited from purchasing such sugar at below the 
mandatory minimum price? 
- the applicable requirements legally enforceable?   If so, we would appreciate information 
on how are they enforced and on the body or bodies that enforce them. 
- the applicable requirements enforced in all Ukrainian territory?  Or are they enforced 
only in some parts of Ukraine?  If  the latter, please provide details. 
Answer:
  
Selling sugar at below the minimum price is not pr ohibited. Nevertheless, pursuant to Law No. 758, 
producers selling (supplying) sugar to the domestic ma rket at below the minimum price are subject to 
a fine.  
No, they are not prohibited from selling sugar at below the minimum price. No, intending purchasers of sugar are not prohib ited from purchasing such sugar at below the 
minimum price. 
The minimum price is not of restrictive or prohib itive nature – it has been set with the view of 
supporting (insuring profitable ope ration) of domestic agricultural producers of sugar beets through 
the mechanism of setting minimum prices to beet sugar and minimum support prices to sugar beets. 
In accordance with the law, in case that sugar is sold at prices below the set minimum price, a 
business entity shall be subject to a fine in the amount  of the double cost of sugar. The said fine shall 
be directed to a local budget within the jurisdicti on in which the defaulting business entity in question 
is registered. A decision on collecting fines is made by courts on a motion of authorities charged by the Cabinet of Ministers of Ukraine with  a responsibility of enforcing this Law.  WT/ACC/UKR/130 
 Page 11 
 
 
 These requirements are enforced in all Ukrainian territory.  
Question 23 
In paragraph 41 of WT/ACC/SPEC/UKR/5/Rev .2, Ukraine states that "The volumes of 
imported refined sugar and the domestically-r efined imported raw sugar were insignificant 
relative to domestic production, and therefore could not influence the domestic market price 
level". 
We request that Ukraine provide most recent three year statistics comparing volumes of 
imported refined sugar and the domestically-r efined imported raw sugar with domestic 
production of sugar. 
Answer:   
Statistics of Sugar Production and Import During the Period of 2002 – 2004   
Thousand tons, Calendar years 
Indicators 2002 2003 2004 
Beet sugar production 1,430 1,452 1,792 
White sugar import 59 79 65 
Sugar refined from imported cane for internal consumption, 
Volumes consumed in Ukraine, thousand tons - 365 120 
 
Question 24 
We would appreciate more information on the categories of refined sugar subject to the 
prohibition on the internal sale (and/or purch ase) of sugar at below the mandatory minimum 
price, in particular: 
Does the prohibition on the internal sale (and/ or purchase) of sugar at below the mandatory 
minimum price apply exclusively to sugar produced under the A Quota? 
Answer:    
The internal sale (purchase) of sugar produced unde r the A Quota at below th e minimum price is not 
prohibited. 
However, in the event of sugar supplies to the in ternal market in quantities exceeding the set quota or 
in case of its sale at prices below the minimum price, a business entity shall be subject to a fine in the 
amount of the double cost of sugar sold in violation of the established procedure. 
Question 25 Or does the prohibition on the internal sale (a nd/or purchase) of sugar at below the mandatory 
minimum price apply to any sugar not produced under the A Quota?  And what sugar does it apply to?  Does it apply to the internal sale of sugar refined in Ukraine from imported raw sugar?  Does it apply to the internal sale (a nd/or purchase of imported refined sugar)?  
Answer:
  
No, the prohibition does not apply. WT/ACC/UKR/130 
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 Question 26 
We would appreciate a specific indication of whether or not sugar refined in Ukraine from 
imported raw sugar is required, under legislation, to be subject to the sa me internal mandatory 
minimum price requirements that apply to domestic sugar produced under the A Quota. 
Answer:
   
Sugar refined from imported raw sugar is not subject to minimum prices.  
Question 27 
We request that details of price regulations relat ing to the products mentioned in Question 5 of 
WT/ACC/UKR/126 and in the reply provided that  are not already notified to Table 3 of 
WT/ACC/SPEC/UKR/5/Rev.2 now be included in a revised and updated version of Table 3. 
Answer:    
Ukraine will insert certain amendments to  Table 3 of WT/ACC/SPEC/UKR/5/Rev 2. 
Question 28 
We refer to price measures introduced "to stabil ize the situation with meat and meat products' 
prices" through the Cabinet of Ministers Resolution No. 1359 of 15 October 2004, "On 
Introducing Changes in Annex to Cabinet of Ministers of Ukraine Resolution No. 1548 of 
25 December 1996" (reply to Question 5 of WT/A CC/UKR/126).  This Resolution broadened the 
scope of authority provided to the Council of Mi nisters of the Autonomous Republic of Crimea, 
Oblsats' State Administrations, Kyiv and Sevasto pol Cities' State Administrations in respect to 
regulation of prices on beef, pork, and poultry meat. 
We would be grateful for further details of the price regulations introduced, and the inclusion of 
specific entries in a revised and updated version of Table 3. 
Answer:   
The regulation of cap limits of w holesale and retail prices and cap limits of profitability of production 
of beef, pork and poultry is a temporary measure in troduced by the government of Ukraine with the 
view of stabilizing the situation with meat and meat products. Updates and additional details will be 
introduced to Revised Table 3. 
Question 29 
We appreciate the effort that would need to be made to reply to Question 6 of 
WT/ACC/UKR/126.  We look forward to tabulated information setting out details of export and 
import prices under international Agreements wh ere trade is undertaken on preferential terms, 
and where exports and imports are traded at ne gotiated prices.  We would note that our 
principal interest in relation to these matters  is trade in sugar under such arrangements. 
Answer:    
Ukraine recently excluded sugar (1701) from free trade regime with the following CIS countries: 
the Russian Federation, Belarus, Georgia, a nd Moldova.  There were no export international 
trade Agreements on sugar since 1996.  WT/ACC/UKR/130 
 Page 13 
 
 
 Question 30 
In the reply to Question 7 of WT/ACC/UKR/126,  Ukraine states that th e National Commission 
for Natural Monopolies Regulation (NCNMR) is  responsible for the regulation of "natural 
monopolies" and that it is currently at the formation stage. 
We request that Ukraine provide details on the structure and function of this Commission, 
particularly the scope of its authority on the regulation of prices of "natural monopolies".  
When will the establishment of the NCNMR be co mpleted and how does it relate to the National 
Commission of Electric Energy Sector Regulation? 
Answer:  
According to the Law of Ukraine "On Natural Mo nopolies" dated 15 May 2003 the activities of the 
subjects of Natural Monopolies is regulated by  National Commissions for Natural Monopolies 
Regulation, executive power bodies and institutions of local governing.  
There is no special "National Commission for Na tural Monopolies Regulation" (NCNMR).  In the 
reply to Question 7 of WT/ACC/UKR/126 did not inform about "National Commission for Natural 
Monopolies Regulation".  
Currently has been established The National El ectricity Regulatory Commission (NERC), The 
National Commission for Regulation of Communica tions and State Committee of Ukraine on the 
housing and communal services questions.  In the ne arest future the formation of the Commission for 
transport sphere will be finished. According to th e Law, the main task of the Commissions on the 
regulation of prices is to form a price policy in the relevant area of natural monopolies. 
According to the Law, the Commissions shall cons ist of the Head of Commission and not less than 
two Commission Members who are appointed and ouste d by the President of Ukraine on proposals of 
the Prime Minister of Ukraine.  The Heads and the Commission Members shall be appointed for six 
years, ensuring periodic rotary of the Commission's composition.  The procedure of the rotary of the Heads and the Commission Members shall be establi shed by the Regulations on Commission.  The 
person shall not be a Commission member more than two terms successively.  
Question 31 We appreciate the reply to Question 8 of WT/ ACC/UKR/126, and seek confirmation that there 
are now no internal or external price regulations  that apply to ferro-alloys, fire-clays, iron ores 
and coke. 
Answer:
  
Ukraine confirms that there is no in ternal or external price regulations  that apply to ferro-alloys, fire-
clays, iron ores and coke. 
Question 32 
We appreciate the clarification provided by Ukraine in the reply to Question 9 of 
WT/ACC/UKR/126 that the minimum price measures  applied to bitter aromatic beverages and 
spirits apply to imported like products. We re quest the inclusion of the following commitment 
language in this section in relation to these minimum prices: WT/ACC/UKR/130 
Page 14  
 
 […]  A member of the Working Party noted however that WTO jurisprudence 
had established that a regulation requiring that domestic and imported products 
adhere to a minimum-price requirement is not consistent with Article III of GATT 1994 on the grounds that the import ed product would be prevented from 
being sold at a price below that of the domestic product.  This member asked 
how the minimum price requirements for bitter aromatic beverages and spirits 
will be brought into conformity with Arti cle III by the date of accession.  The 
representative of Ukraine replied […]. 
Answer:
 
Until the time of Ukraine's accession to WTO, the pricing policy applying to bitters will be fully 
consistent with GATT's Article III.  Resolution No . 407 of the Cabinet of Ministers of Ukraine of 
28 May 2005 "On Invalidation of Certain Resolutions of the Cabinet of Ministers of Ukraine" annuls 
minimum prices to domestically produced and imported spirits. 
Question 33 
Table 3 of WT/ACC/SPEC/UKR/5/Rev.2 will need to  be revised and updated to reflect replies to 
Questions 10 and 12 of WT/ACC/UKR/126.  Howev er, we would like to see the elimination of 
those price regulations and the absence of any rem aining price regulations in relation to these 
products noted in the report. 
Answer:  
As mentioned in the Questions 10 and 12, goods  would be eliminated from the Table 3.  
Question 34 
We appreciate the reply to Question 11 of WT /ACC/UKR/126 on the various price measures on 
glass ware of Chapter 70.  We would like to see the information provided that the minimum prices do not apply to imported products noted in the report. 
Answer:
 
Pledge prices to glass packaging do not apply to imported goods. 
Question 35 It would be useful if Ukraine could amend a number of descriptions provided in Table 3 of 
WT/ACC/SPEC/UKR/5/Rev.2 to more clearly indica te the nature of price regulation (entries in 
Column 3). 
The price regulation applied to sugar beets of subheading 1212.91 is described as "Approval of 
minimum prices (support prices)".  Our understa nding is that the measure is a "Minimum 
purchase price applicable to sugar processors within  the limits of the A and B Quotas".  If our 
understanding is correct, then this is what should be stated in column 3. 
Answer:
 
The minimum price is only set to the A Quota sugar.  WT/ACC/UKR/130 
 Page 15 
 
 
 Question 36 
The price regulation applied to refined sugar  of subheading 1701.99 (presumably mistakenly 
referred to as subheading 1701.12) is also described as "Approval of minimum prices (support prices)".  While we are remain unsure of th e precise nature of this measure, the product 
coverage and the types of transactions it app lies to, the column 3 entry should indicate:  
(a) whether the price regulation is a "minimum purchase price", a "minimum sale price" or a 
"minimum purchase/sale price", depending on wh ether the buyer or seller (or both) is legally 
required to observe the minimum price; (b) wheth er it covers "domestic refined sugar of beet 
origin produced within the limits of the A Quota", or a larger coverage of refined sugar sold in Ukraine; and (c) whether it applies to "all refin ed sugar sale transactions", or something less 
(e.g., "the first sale of domestic refined sugar of beet origin produced within the limits of the A 
Quota"). 
Answer:
 
Table 3 on page 142 contains the code whic h is used for raw sugar produced from beets 
(HS subheading 1701.12).  This is sugar produced by  domestic producers from sugar beets (within the 
A Quota).  
Question 37 
The price regulation applied to bitter aromatic beverages of tariff line 2103.9030 and spirits of 
subheading 2208.20 to tariff line 2208.907800 is described as "Approval of minimum prices".  
We would be grateful if the descriptions in  column 3 could be am ended to provide more 
information on how the measures apply (at the wholesale/retail stage). 
Answer:  
Resolution No. 407 of the Cabinet of Ministers of  Ukraine of 28 May 2005 "On Invalidation of 
Certain Resolutions of the Cabinet of Ministers of  Ukraine" annuls minimum prices to domestically 
produced and imported spirits. 
Question 38 
We have concerns with the statement at para graph 137 of WT/ACC/SP EC/UKR/5/Rev.2 that 
minimum and maximum purchase price requirements could be applied to imports or exports in 
the event of a finding by the Antimonopoly Co mmittee that the market was threatened and of 
the endorsement of such a finding by the Cabinet of Ministers. 
We ask that Ukraine provide advice of all provis ions of all laws and legal acts which provide 
framework for the application of such minimu m and maximum purchase price requirements to 
imports or exports. 
Answer:  
In compliance with Article 8 of the Law of Ukra ine On State Support to Ag riculture in Ukraine, 
minimum and maximum purchase prices may be applied to import and export on a provisional basis for the period of effect of any temporary admini strative price regulation measures. Temporary price 
regulation includes any measures aimed at prevention from or termination of speculative or collusive 
practice of setting prices by sellers and/or buyers of price regulation objects at an organized agricultural market which may not be rectified by m eans of standard state intervention procedures. It 
would be fair to argue that these are extraordinar y, emergency circumstances while application of WT/ACC/UKR/130 
Page 16  
 
 administrative prices to import and export is a provi sional measure necessitated by such extraordinary 
circumstances. Pursuant to the laws currently in effect in Ukraine, the customs value of imported 
goods, including agricultural produce is regulated in observance of section XI of the Customs Code of 
Ukraine.  
Question 39 
It is our expectation that Ukraine will repeal all of those provisions prior to the date of 
accession, notify the completion of the process of repeal prior to the adoption of its report by the 
Working Party, refrain from applying those pr ovisions prior to repeal, commit to not re-enact 
those provisions through any law or legal act be fore or after accession, and commit to not seek 
recourse to measures of this kind after accession. 
Answer:
  
Ukraine took note of this comment. 
Question 40 
We refer to the statement in paragraph 137 of WT/ACC/SPEC/UKR/5/Rev.2 that minimum 
purchase prices applied pursuant to the provisions of the Law "On State Support of Agriculture 
in Ukraine" could trigger market interventi on aimed at supporting domestic agricultural 
producers. 
The purpose of such a policy is unclear.  Is its purpose to stabilize prices  or to provide support 
to domestic agricultural producers? 
Answer:  
The minimum purchase price policy in the Law on State Support of Agriculture in Ukraine is 
designed to provide state support to domestic ag ricultural producers by ensuring minimum level of 
purchase which guarantees certain level of profitability for producers. 
Question 41 
We would also appreciate information on how su ch intervention would operate and the nature 
of the price measure. 
Answer:  
In accordance with the Law of Uk raine On State Support to Agriculture of Ukraine, a minimum 
purchase price is an indicator for making a decision on financial interventions, and is set to sustain revenues of domestic agricultural producers at a le vel that would prevent from average statistical 
losses associated with production of a metric unit of the price regulation subject.  
Question 42 
The nature of the price measure is unclear.  Would it be correct to say that the minimum 
purchase prices would not be ma ndatory minimum purchase prices?   Would it be correct to 
say, there would be no obligation on any buyer or seller to buy or sell at the minimum price, and that the sole means of influencing the price would be intervention purchases and sales?  If 
not, we would be grateful for clarification.  WT/ACC/UKR/130 
 Page 17 
 
 
 Answer:  
The understanding of Ukraine's response is correct.  
Question 43 
We have seen reports suggesting that "indicative import prices" meat may have been 
introduced for meat. 
We seek clarification as to whether these reports a re correct.  If they have been introduced, we 
would appreciate details of the measures, including the affected products by tariff line, the type 
of measures and their duration. 
Answer:  
No indicative prices to meat have been introduced.   - Competition Policy Question 44 Paragraphs 46-50:  The present Ukrainian legi slation on competition still appears to be 
somewhat patchy.  
Do the authorities have any intention to introduce a full-fledged legislation that would also 
include notably merger controls, prohibition of cartels and monitoring of the compliance of 
administered prices with the competition legislation?  
If yes, what would be the timeframe considered? 
Answer:
 
The Law of Ukraine "On the Protection of Econom ic Competition" No. 2210- III of 11 January 2001 
regulates the competition relations in Ukraine.  The provisions of the Law sufficiently cover the issues 
of mergers of enterprises, prohibition of cartels  and monitoring of administered prices.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 45 Paragraph 55:   We support the first commitment text. Paragraph 61:  We support the second commitment text. 
Answer:
 
Ukraine agrees with first commitment under paragraph 55 and second commitment under 
paragraph 61. WT/ACC/UKR/130 
Page 18  
 
 IV.  POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 46 We appreciate the additional information provide d and the clear indication that for the vast 
majority of its trade, the right to import and export is unrestricted.   
We remain interested in knowing the reaso n for the annual fee of US$ 47,000 for the 
importation activity licence for alcohol, which is  much higher than that for other goods.  Are 
domestic producers and traders subject to similar fees? 
Answer:
 
As was already mentioned in Paragraph 28 of th e document WT/ACC/UKR/125, alcoholic beverages 
are the high profit type of products.  The annual fee in the amount of US$ 47,000 for import licence 
for the above mentioned products is equal for the national producers, traders and importers. 
Question 47 
For ethyl alcohol, cognac and fruit spirits, only state-owned, specialized domestic firms 
designated by the Council of Ministers are permitted in international trade.  Please confirm 
whether an activity licence is required for the im portation of pharmaceuticals or pesticides and 
other agro-chemicals.    
Answer:  
Ukraine confirms that no activity licence is requi red to import the pharmaceuticals or pesticides and 
other agrochemicals. 
Question 48 
Table 5(a) indicates that only bodies appr oved by the Council of Ministers may import 
narcotics.  We understand that the list of approve d importers is very small.  Please explain why 
Ukraine does not consider these firms to  be state trading enterprises.   
Answer:  
Activity connected with the importation into the territory of Ukraine and/or exportation from its 
territory of narcotic substances, psychotropic subs tances and precursors is carried out by the State 
enterprises or municipal property enterprises, provide d they have a licence allowing to carry out the 
relevant types of activity and possess a certificate for each separate transaction. The certificates are issued by the Drugs Control Committee, and w ith the approval of the Security Service. 
The above mentioned enterprises do not relate to the category of State trading enterprises, since they 
do not enjoy the exceptional or special privileg es, as provided for by the GATT Article XVII, 
including the government measures, which influence the level or direction of imports or exports. 
Question 49 
Paragraph 66:  We note the commitment language on trading rights.  WT/ACC/UKR/130 
 Page 19 
 
 
 Answer:  
Paragraph 66 does not contain any co mmitment language on trading rights.  
Question 50 
Paragraph 64 mentions that Table 6(d) contains an indicative list of the documentation and 
information requirements to get an activity licence.  
We kindly request that Ukraine provides an exhaustive list of the documentation and 
information requirements as it is essential that  persons who want to engage in an activity 
subject to licence knows exactly which are the requirements and because incomplete 
applications are rejected. 
Answer:  
The list of requirements, documentation and inform ation required for obtaining an activity licence, 
provided in Table 6(d), is exhaustive. 
Question 51 
Paragraphs 70 and 71:  Some Members are still of the view that the relatively high registration 
fee for medical forms compared to medici ne in bulk can act as a restriction.  
If the registration fee does not include the cost of  pharmacological or additional expertise and is 
a matter between the applicant and the specialized  institution performing the service, how do 
you ensure that the registration fee correspon ds to the approximate cost of the service 
rendered?  
Answer:  
The amount of fee for registration of medical forms in Ukraine is lower than that in some other 
countries of the world. Besides th at, the statistics regarding the im ports of medicines into Ukraine 
prove the dynamics of its growth.  Ukraine, in  conditions of the developing infrastructure, 
introduction of the newest laboratory equipment and the relevant technical support, shall consider 
reviewing these expenditures on the subject of reduction thereof.  
Question 52 
Who is the specialized institution? Answer:
  
If it is required to check the correspondence of the pr e-clinic study and/or th e clinic expertise of a 
medical preparation to the established requirements, to  get the experimental or clinical checking of the 
acquired results, approbation of methods of analysis of the medical preparation, the Centre submits 
the materials required for the State registration of a medical preparation for an additional expertise. 
The additional expertise of a medical preparation is carried out by the duly authorized by the Ministry 
of Health institutions after the payment for the e xpertise is executed, as established by the contract 
between the applicant and the authorized expert in stitution. Such institutions being the State Service 
for Medical Preparations and Products of Medical  Designation and the Pharmacopoeia Centre, which 
are entitled with conducting the above  mentioned checking and analyses. WT/ACC/UKR/130 
Page 20  
 
 A.  IMPORT REGULATIONS 
- Ordinary customs duties Question 53 We refer to the advice provided in paragraph 75 of WT/ACC/SPEC/UKR/5/Rev.2 that the law 
amending the law "on the Customs Tariff of Ukra ine" was being drafted.  Could Ukraine give 
some indication when this law will be enacted so  that a concordance table for the conversion of 
Ukraine's tariff commitments to HS 2002  could be made available to members? 
Answer:
 
The Law of Ukraine On Amendments  to the Law of Ukraine On Cust oms Tariff of Ukraine providing 
for harmonization of the current nomenclature of  the Customs Code of Ukraine with the 2002 
Harmonized System will enter into effect as at 1 January 2006 following which members will receive 
an agreed tabulated description of Ukraine' s commitments harmonized with the HS 2002. 
Question 54 
We welcome the advice provided by Ukraine in the meeting of the Working Party held in 
March 2005 that tariffs in its Schedule of Concessions and Commitments on Goods would be 
bound at six-digit level where the product nome nclature for national tariff lines might have 
been based on geographical names or have been op en to an interpretation that the concession in 
relation to the line would be accorded exclusiv ely in relation to products originating the 
territory of a particular member.  We wo uld like to see this noted in the report. 
Answer:  
In order to avoid geographical indications to certain  headings, Ukraine herewith confirms that tariff 
offers to cheeses 0406 (0406 10, 04 06 20, 0406 30, 04 06 40, 0406 90) and wines 2204 (2204 10, 
2204 21, 2204 29, 2204 30) will be bound at a 6-digit level. 
Question 55 
According to the comprehensive tariff offer of 29 April 2002 containing Ukraine's commitments 
on goods, the reduction of the bound base rate of duties is staged.  We would appreciate if 
Ukraine could confirm that the reductions agreed w ill be effective at the date indicated in the 
comprehensive tariff offer independently from the date of accession to the WTO as indicated by 
Ukraine. 
Answer:   
Yes, we confirm that Ukraine committed not to ch ange the transition period. The calendar years are 
indicated in the consolidated offer. 
- Other duties and charges Question 56 Paragraphs 79-80:  We note that Ukraine has ODCs in place on petroleum products, and the 
commitment language on ODCs.  WT/ACC/UKR/130 
 Page 21 
 
 
 Answer:  
The issue mentioned in Paragraph 79 is regulated by the Resolution of the Cabinet of Ministers of 
Ukraine "On the Elimination of Extra Duty for the Customs Clearance of Oil Products" No. 355 of 
18 May 2005.  Ukraine confirms its co mmitments listed in Paragraph 80. 
- Fees and charges for services rendered 
Question 57 
Please confirm which of the fees listed in Tables 3 and 4 and 10(a) and 10(b) are in place and not 
slated for elimination. 
Answer:  
On 1 April 2005 the Cabinet of Ministers of Ukra ine adopted the Order No. 91-r "On Indexation of 
Tariffs for Transportation of Cargos by Railway Tr ansport and Related Servic es", which provides for 
an equal level of tariffs for internal railway tran sportation, and exports/imports, except for the tariffs 
on the transportation of the iron ore raw materials, cast iron, rolled ferrous metal mineral fertilizers 
and oil products by the railway transport. The tari ffs for these products will be unified by the end of 
the third quarter of the year 2005. 
All fees in the first part of Table 10(a) will be valid until 1 January 2006; except item 3 is currently 
invalid.  Overtime and off-location customs clearanc e fees tabulated in the second part of Table 10(a) 
are in effect.  They are fees for services rendere d and reflect the approximate cost of services 
rendered.  All fees listed under 10(b) will come into effect as of 1 January 2006. 
The ad valorem  fee for export licence fee has been elimin ated.  Cabinet of Ministers' Resolution 
No. 362 of 18 May 2005 sets the fees for issuing impor t and export licenses which reflect the cost of 
services rendered. 
Question 58 
Paragraph 91 and Table 10(a):  The fees mentioned in Table 10(a) are not yet totally consistent 
with Article VIII GATT as an ad valorem  fee does not correspond to the approximate cost of 
services rendered.  For instance, an ad valorem  fee of 0.2 per cent of the customs value of the 
goods is levied for the customs clearance of goods which customs value is more than US$ 1,000.  
From US$ 1,001 to US$ 50,000 the fee levied is in creasing even if the sa me service is rendered.  
Above US$ 50,000 the fee is limited to a maximu m of US$ 1,000 independently of the value of 
the imported goods.  
In order for Ukraine to comply with Article VIII  GATT we request that Ukraine transforms all 
its remaining ad valorem fees in flat fees independently of  the value of the imported goods. 
Although Ukraine says in answer to Question 43 (document WT/ACC/UKR/125) that it will 
ensure that any fees and charges for services rende red would only be applied in conformity with 
the relevant obligations of the GATT 1994 and that from the date of accession these fees and charges would be in accordance with the relevan t provisions of the WTO, we haven't seen any 
changes regarding the ad valorem  fees.  As this issue is not properly answered in the revised 
Working Party Report as well and as we have ma de this request for several years now, we urge 
Ukraine to provide a satisfactory answer as soon as possible, i.e. remove the ad valorem  fees at 
the latest from the date of accession. WT/ACC/UKR/130 
Page 22  
 
 As the levels of the customs clearance fees mentioned in Table 10(a) were applicable only up to 
1 January 2005, could Ukraine specify if the app lication of the fees listed in Table 10(a) have 
been extended and in any case to provide an up to date and exhaustive list of the fees applicable 
from 1 January 2005? 
Answer:
 
All fees in the first part of Table 10(a) will be valid until 1 January 2006; except item 3 is currently 
invalid.  Overtime and off-location customs clearanc e fees tabulated in the second part of Table 10(a) 
are in effect.  They are fees for services rendere d and reflect the approximate cost of services 
rendered.  All fees listed under 10(b) will come into effect as of 1 January 2006.  
Question 59 
We note in paragraph 96 of document WT/ACC /SPEC/UKR/5/Rev.2, that differential railway 
tariffs were applied for the transportation of  certain products, notably iron ore, coal, 
carbamide, ferrous and non-ferrous scrap metal, and since 2004, cast iron, coke, oil products, 
fertilisers, grain and foodstuffs.  We encourage  Ukraine to accept the commitment for railway 
tariffs to be applied in conformity with WTO obligations. 
Answer:  
On 1 April 2005 the Cabinet of Ministers of Ukra ine adopted the Order No. 91-r "On Indexation of 
Tariffs for Transportation of Cargos by Railway Tr ansport and Related Servic es", which provides for 
an equal level of tariffs for internal railway tran sportation, and exports/imports, except for the tariffs 
on the transportation of the iron ore raw materials, cast iron, rolled ferrous metal mineral fertilizers 
and oil products by the railway transport.  The ta riffs for these products will be unified by the end of 
the third quarter of the year 2005. 
Question 60 
Paragraph 97:  We note the commitment langu age on fees and charges for services rendered.  
We are unsure, however, how the commitment rela tes to differential pricing for domestic and 
imported goods on its railroads.  We seek a specif ic commitment to equalize these rates prior to 
accession. 
Answer:  
The Cabinet of Ministers adopted an Order "On th e Approval of Directives of the Delegation of 
Ukraine at the Negotiations on Ukraine's Acce ssion to the World Trade Organization", which 
confirms the commitments of Ukraine in the cour se of multilateral negotiations.  Point 4 of the 
commitments envisages that from the day of accession to  the WTO Ukraine will ensure that all fees 
and charges for services rendered or to be rendere d in connection with importation or exportation 
shall correspond to the requirements of Articles I, V,  VIII, X and XI of GATT 1994, and also – to all 
other WTO documents regulating the fees and charges.  From the moment of accession to the WTO, Ukraine will provide the WTO members, at their request, with data on the application, amount of payments, level of income thereof and their use.  WT/ACC/UKR/130 
 Page 23 
 
 
 - Application of internal taxes to imports 
Question 61 Paragraph 101:  please provide information of the status of adoption of the draft law on excise 
duty.  Will preferential tax rates applied to do mestically produced goods be phased out before 
the accession? 
Answer:
 
The Law of Ukraine "On Amendment of the Law of Ukraine "On the State Budget for 2005" and 
Some Other legislative Acts" No.2505-IV of 25 Ma rch 2005 eliminated the exemptions from excise 
duty on turnover of cars, freight and passenger ve hicles and motorcycles produced by the Ukrainian 
enterprises, and also – the components for manufac turing these motor vehicles.  The Law of Ukraine 
"On Excide Duty Rates for Ethyl Spirit and Alcoho lic Beverages" establishes higher rates of excise 
duty on alcoholic beverages imported into Ukraine be fore Ukraine's accession to the WTO (Article 7).  
Question 62 
In recognition of the fact that Ukraine has been reviewing its policies relating to excise rates and 
exemptions and VAT rates, refunds and exempt ions, we would appreciate an update on the 
policies that now apply in this area and on Ukra ine's intentions in relation to these matters upon 
accession.  To facilitate this, we would appreci ate detailed information highlighting differences 
(if any) in the rates, refunds and exemptions th at currently apply or will apply to domestic and 
foreign products or services, and all conditions and benefits attaching to particular rates, 
refunds or exemptions.  As part of this, we wo uld request a revision and update of Table 11 of 
WT/ACC/SPEC/UKR/5/Rev.2 on excise rates and the preparation of similar tables on VAT 
rates and VAT exemptions.  We will reserve our deta iled comments on issues in relation to this 
section of the report until we have had an op portunity to review the situation in detail. 
Answer:   
Revised Table 11 of WT/ACC/SPEC/UKR/5/Rev.2 will contain information on excise rates, VAT 
rates and VAT exemptions. 
Question 63 We would however also seek clarif ication of the following points: 
We would appreciate a report on steps taken to allow taxpayers to issue promissory notes for 
payment of VAT on imported excisable goods and agricultural products and on goods imported by enterprises with foreign investment (paragraph 106 of WT/ACC/SPEC/UKR/5/Rev.2). 
Answer:
 
Provisions of Article 11.5 of the Law "On Value Added Tax" of 3 April 1997 No. 168-97 which 
prohibited the possibility for foreign companies to  use promissory notes for the payment of VAT, 
were cancelled according to the Law of Ukraine "On the amendments to the Law of Ukraine "On the 
State budget of Ukraine on 2005 year" and some  other laws and regul ations" from 25 March 2005 
No. 2505-IV. WT/ACC/UKR/130 
Page 24  
 
 Question 64 
We would note that the VAT measures applying to milk and meat described in paragraph 109 
of WT/ACC/SPEC/UKR/5/Rev.2 appear to benefit processors rather than producers of basic 
agricultural products, and therefore would not sati sfy the criterion in paragraph 7 of Annex 3 
of the Agriculture Agreement for inclusion in the AMS.  The VAT measures would appear to 
apply solely in relation to the use of dom estic goods by processors, and would thus confer 
benefits upon processors inconsistently with the provisions of Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures.  We ask Uk raine to indicate how it will eliminate these 
measures by the date of accession. 
Answer:
 
We consider that the existing mechanism of s upporting meat and dairy products producers through 
redirection of VAT amounts which would have othe rwise been payable by processing enterprises to 
the state budget may not be deemed to be more a dvantageous to processing industries rather than to 
producers of basic agricultural produce (in this case – milk and meat) since this mechanism provides 
for the following: 
- Producers of milk and meat sell their products in live weight to processing enterprises which 
is taxable at a zero rate; and 
- At the time of sale of these products, their producers receive from processing enterprises, in 
addition to their cost, a subsidy which is calcu lated as the total of the processing enterprise's 
VAT liabilities payable to the state budget. 
In other words, in order to pay a subsidy to milk  and meat producers, the processing enterprises must 
in advance calculate the total of VAT liabilities (a  difference between VAT received from buyers and 
VAT paid by a supplier) which will arise in the futu re after the sale of finished products manufactures 
from milk and meat purchased from producers and wh ich would have been payable to the state 
budget. However, these VAT funds are not transferred by processing companies to the state budget but are instead paid to agricultural produce produ cers in the form of subsidies at the time of 
purchasing milk and meat in live weight. 
Therefore, the existing procedure is beneficial ex clusively to basic agricu ltural produce producers and 
the producer benefits from it at the time of the initia l sale of a respective basic product (milk, meat).  
As concerns processing companies, it should be noted that under the conditions of the above 
described mode of support to agricultural goods produ cers, they act solely as agents empowered by 
the state to transfer to transfer to agricultura l goods producers the VAT monies which are payable by 
processing enterprises to the state budget. 
Question 65 
We seek the inclusion in the report of a commitment to eliminate VAT measures in relation to 
agricultural products other than milk and me at on 1 January 2006 described in paragraph 109 
of WT/ACC/SPEC/UKR/5/Rev.2.  The description indicates that VAT refunds on purchased 
inputs that would otherwise be payable dir ectly to producers and processors of basic 
agricultural products and be freely at their disposal are instead channelled into a fund, which may be used only for specified purchases.  The es sence of this measure would thus appear to be 
to restrict producers' discretion over the uses to  which the accumulated VAT refunds (which 
belong to them) may be put.  We are unable to  see how such restrictions on the use of VAT 
refunds by agricultural producers, which would otherwise be freely at their disposal, could be 
construed as providing the basis for support in their favour, or how the use of funds  WT/ACC/UKR/130 
 Page 25 
 
 
 accumulated on this basis could count toward s the AMS.  The return of revenue to which 
producers would be entitled through another cha nnel could not, on the face of it, constitute 
revenue foregone, as the refund of such reve nue is a generally available entitlement under 
Ukraine's VAT system, and the accumulated f unds are already owned by the producers.  
However, the requirement that the accumulation of  such refunds must be spent on "fuel, seeds, 
fertilizer, pesticides and agricultural machinery or  equipment" would appear to be an internal 
quantitative regulation applicable to purch ases undertaken by producers.  Under this 
regulation, to the extent that purchases of the required nature would not be undertaken, right of 
access to accumulated refunds would be denied ; thus investment in agriculture would be 
induced, in effect, by threat of confiscation of the financial asset that would fund it rather than 
by the prospect of a benefit.  We will reserve ou r position on whether or not this would violate 
any WTO provision, but would note the distortion involved. 
 Answer:  
Ukraine does not perceive VAT accumulation as a distortion as it is referred to.  There is no 
discrimination in taxation of domes tic versus imported products as VAT  is calculated and payable at 
the same rate – 20 per cent which applies to both transactions involving sale of domestically 
manufactured agricultural produce and transactions i nvolving importation of similar foreign-origin 
goods.  
Accumulated VAT (at a 20 per cent rate) is not pa yable to the budget, an agricultural producer is 
exempted from payments to the budget.  This is a measure whereby the state turns down revenues in 
favour of agricultural producers (revenue foregone) wh ile that latter use the accumulated VAT for the 
purposes of acquisition of material and technical i nputs which in essence is about an input subsidy. 
However, this subsidy is provided not by means of direct disbursements from the state budget but 
rather on the form of an accumulated value added tax which would have otherwise been payable to 
the state budget of Ukraine and then forwarded for specific types of support to agribusinesses.  
Question 66 
We would appreciate confirmation that the chan ges introduced on 1 January 2005 eliminated 
the requirement that the accumulation of such refunds must be spent on "fuel, seeds, fertilizer, pesticides and agricultural machinery or equipmen t" and did not involve the imposition of any 
other restriction, or the re-imposition of any existing restriction, on the use of these funds. 
Answer:
 
No, Paragraph 109 of WT/ACC/SPEC/UKR/5/Rev.2 indi cated that as per the Law of Ukraine "On 
Amendment of Certain Laws of Ukraine 'On Taxation of Agricultural Enterprises'" of 
23 December 2004, No. 2287, the effect of the VAT accumulation mechanism was extended until 
1 January 2006. 
Question 67 
We would appreciate advice of how Ukraine wi ll equalize the VAT rates for domestic and 
imported agricultural products to achieve conformity with the provisions of Article III:2 of 
GATT 1994 by the date of accession. 
Answer:  
Data concerning Ukraine's plans in this regard  has been provided (See Paragraphs 112 – 113 of 
WT/ACC/SPEC/UKR/5/Rev.2) WT/ACC/UKR/130 
Page 26  
 
 Question 68 
Paragraph 104:  Ukraine should eliminate discri minatory excise taxes a nd VAT rates applied to 
imports of automobiles by the date of accession.   
Answer:
 
The Law on "Introduction of Amendments to the Law of Ukraine on State Budget of Ukraine for 
2005 (the "2005 Budget Law") and Some Other Legi slative Acts of Ukraine" dated 25 March 2005 
established that excise tax and VAT for importe d and domestic cars are paid on equal terms. 
Question 69 
Paragraph 105:  please indicate which is currentl y the general rate of the VAT and if there are 
any plans to reduce it further in the future? 
To which rate of VAT will milk and milk products be subject to after 1 January 2006? Answer:
 
Currently, the general rate of VAT is 20 per cent.  The issue of reducing the rate is being considered. 
The VAT rate for milk and dairy products is 20 per cent. 
Question 70 
Paragraph 108:  This paragraph mentions th at the exemption from VAT for medicines 
registered in Ukraine as well as imported medi cines has been suspended during 2004 for both 
domestic and imported medicines.  
Could Ukraine indicate if the exemption has been  restored for 2005 or if the suspension of the 
exemption has been maintain ed and for which reasons? 
Answer:  
The suspension of exemption from VAT for medi cines was applied only in 2004.  The Law of 
Ukraine "On Amendment of the Law of Ukraine "On the State Budget for 2005" and Some Other 
legislative Acts" No. 2505-IV of 25 March 2005 exem pts the imported medicines and medicines of 
domestic production from VAT. 
Question 71 
Ukraine states that VAT exemptio ns have been eliminated for imported inputs in shipbuilding 
and the construction of aircraft, "except for comp anies which had signed contracts prior to the 
entry into force of the Law "On the State Budget for the Year 2004" and provided the advance payments received exceeded 20 per cent of the contract price." 
How many instances of "signed contracts" are th ere, and how long do these contracts run?  
Answer:
 
According to the Law of Ukraine "On the amendmen ts to the Law of Ukraine "On the State budget of 
Ukraine on 2005 year" and some other laws and regulations" from 25 March 2005 No. 2505-IV the 
VAT privileges for shipbuilding and aircra ft enterprises have been eliminated.  WT/ACC/UKR/130 
 Page 27 
 
 
 Question 72 
We understand that the practice of VAT exemptio ns for domestic agricultural goods sold by 
farmers has been eliminated, in favour of th e establishment of a discriminatory tax level of 
10 per cent on domestic goods and 20 per cent on imports, as provided for in the new law "On Amending Certain Laws of Ukraine on Taxati on of Agricultural Enterprises and Support of 
Social Standards of Their Employees."   
- If Ukraine intends to implement this practice, we assume that this part of the report will 
be redrafted. 
- We seek a commitment that this practice will be eliminated by the date of Ukraine's 
accession to the WTO.   
- We seek commitment language that these high er taxes on imported alcoholic beverages 
will be eliminated. 
Answer:
  
The Law of Ukraine "On Amendment of Some Laws of Ukraine on Taxation of Agricultural 
Enterprises" has suspended the special regime of taxation of agricultural producers till 
1 January 2006.  Currently, the VAT rate of 20 pe r cent apply to the domestic producers and imported 
products.  Moreover, Ukraine, by the end of  2005 plans to eliminate the provision on the 
discriminatory VAT rates (10 per cent for the domes tic producers and 20 per cent - for the importers, 
which shall come into force on 1 January 2006 in line with the Article 8.1. of the Law of Ukraine "On 
Added Value"). 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 73 
Is this list of imports subject to licensing comprehensive? 
Answer:  
The list of goods, imports of which is subject to  licensing, provided in Table 12(a) and (c) of 
document WT/ACC/SPEC/UKR/5/Rev.2, is comprehensive. 
Question 74 Paragraph 102:  We note the commitment lang uage on quantitative restrictions and import 
licensing. 
Answer:
 
Paragraph 102 does not contain any commitment language on quantitative restrictions and import 
licensing.  
Question 75 Paragraph 128:  Please provide information ab out the foreseen amendments to the law on 
foreign economic activities in particul ar which will be the main changes. WT/ACC/UKR/130 
Page 28  
 
 Answer:
 
The changes and amendments to the Law of Uk raine "On Foreign Economic Activity" envisage the 
following: 
- exclusion of the terms not agreeable with the requirements of WTO standards; 
- changing of some notions with a view to harmonizing them with the GATT/WTO system 
requirements; 
- supplementing with new definitions; 
- reflecting in the Law of the principles for app lication of the national treatment regime and 
most-favoured nation treatment in relation to the foreign economic agents. 
Moreover, it is proposed to include the new Article on principles of application of technical norms, 
regulations and standards in fore ign economic activity, supply of products for the state needs and 
purchase of goods, works and services at the expense of  the State budget, International transit, which 
are also harmonized with the standards of the GATT/WTO system.  A new Article is suggested on trade in services in foreign economic area, on pr eshipment inspection, and - a provision on the 
creation and activity of the national enquiry point.  
Question 76 We note Ukraine's reply to Question 20 of WT/ACC/UKR/126.  To accommodate our request 
for commitment language in relation to measures al ready eliminated or to be eliminated by the 
date of accession, we seek the addition to  the first sentence of paragraph 130 of 
WT/ACC/SPEC/UKR/5/Rev.2 the following words, "including measures referred to in paragraphs […]", and ask that the paragraphs  concerned include the one referring to the 
elimination of quantitative restrictions on liv estock.  (Some reorganization of text may be 
needed to separate measures requiring adjustment or elimination from those that do not.)  This 
way the commitment language would simultan eously apply generally and be linked by 
paragraph references to the specific concerns raised by Members and reforms for accession. 
Answer:
 
Ukraine takes note of this proposal and will examin e different options for amending the wording of 
Paragraph 130 to accommodate the language suggested by the Secr etariat. At the same time, we 
consider that a reference to respective GATT Artic le in Paragraph 130 is ad equately exhaustive for 
such commitments. 
Question 77 
We appreciate the timeframes and absence of  charges in the table under the reply to 
Question 21 of WT/ACC/UKR/126 and Ukraine's acceptance that the issuance of licenses 
subject to approval makes them non-automatic.  We note the transposition of this information to Table 12(a) of WT/ACC/SPEC/UKR/5/Rev.2. 
We would consider the inclusion of references to  the TBT Agreement alongside the references to 
GATT Article XX(b) in Table 6(a) and Table 12(a) of WT/ACC/SPEC/UKR/5/Rev.2 to be 
appropriate. 
Regarding Ukraine's reply to Question 22 of WT/ACC/UKR/126 that "As a whole there are no 
bans on imports" to protect human, animal or plant life or health, we would appreciate clarification of any bans or other restrictions on imports applied to protect human, animal or 
plant life or health, and would ask that this info rmation be included in the consolidated table of  WT/ACC/UKR/130 
 Page 29 
 
 
 non-tariff measures that we have requested.  As Ukraine indicates that such measures may be 
used in exceptional cases, we would presume  any which currently apply would be few in 
number and not be difficult to notify through an  entry in such a table.  The justification 
provided for any such measures would need to be in relation to the SPS Agreement, not only 
GATT Article XX(b). 
Answer:   
This question is under the review now.  The Wo rking Party members will be informed about the 
decision of this review 
Question 78 
We appreciate Ukraine's undertaking to notify  its FTA with FYROM upon accession for review 
in the CRTA (reply to Question 23 of WT/ACC/U KR/126).  However, import quotas are subject 
to the same WTO disciplines regardless of whet her they are used in preferential trade 
arrangements or apply to MFN trade.  Measures of this kind are prohibited under Article XI:1 
of GATT 1994 and, in the case of agric ultural products, under Article 4 of the 
Agriculture Agreement, unless all relevant WTO pr ovisions for the limited and tightly-defined 
cases where they may be used are observed (e.g., in  the case of safeguard measures).  The act of 
entering into a preferential trade Agreement do es not create a waiver from the WTO's rules. 
We request the notification of all import quota s other than safeguard measures in the table on 
non-tariff measures that we have requested, and the inclusion of information on how they will 
be eliminated by the date of accession. 
Answer:  
Information about import quotas applied in Ukra ine is presented in Table 4 of WT/ACC/UKR/120. 
Question 79 
We refer to Ukraine's reply to  Question 24 of WT/ACC/UKR/126.  We would consider that, 
regardless of the form of Ukraine's sugar regime,  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 making the 
production of sugar from imported raw materials conditional on the exportation of the sugar 
produced from those raw materials would violate national treatment provisions under 
Article III of GATT 1994 and the TRIMs Agreement. 
We seek clarification as to when this provision  of the Law will be repealed.  We would expect 
that it will be repealed by the date of accession. 
Answer:  
The Government of Ukraine has drawn up and forw arded to the Verkhovna Rada of Ukraine a draft 
law that will revoke mandatory exportation of raw cane sugar. Ukraine will enter appropriate 
corrections to the Law prior to its accession to WTO. 
Question 80 
We refer to Ukraine's reply to Question 26 of  WT/ACC/UKR/126.  We would appreciate details 
of licensing requirements relating to import or export of goods under barter transactions 
established through the provisions of interstate Agreements. WT/ACC/UKR/130 
Page 30  
 
 Answer:
 
Activities in question are regulated by the Law of Ukraine of 23 December 1998 No. 351- ХІV 
"On Regulation of Goods Excha nge (Barter) Operations in Foreign Economic Activity; by 
Resolutions of the Cabinet of Ministers of Ukraine of 13 August 1999,  No. 1489 'On Procedure of Issue of One-time Individual Permits Authoriz ing Excess of Timeframes for Importation of Goods 
(Performance of Works, Provision of Services) Im ported Under Barter Agre ements; of 29 April 1999' 
No. 756 'On Specific Issues Pertaining to Regulation of Goods Exchange (Barter) Operations in Foreign Trade, by Decree No. 188 of the Ministry of Economy of Ukraine of 9 June 2000' 'On Commission for Issue of One-time Individual Permits Authorizing Excess of Timeframes for Importation of Goods (Performance of Works, Provision of Services) Imported Under 
Barter Agreements; by Decree No. 831 of the Minist ry of Foreign economic Relations of Ukraine of 
1 November 1999' 'On Approval of Form of One- time Individual Permits Authorizing Excess of 
Timeframes for Importation of Goods (Performance of Works, Provision of Services) Imported Under 
barter Agreements'". 
Pursuant to the procedure, an applicant seeking i ssue of a one-time individual permit must file the 
following documents to the Ministry of Economy and for European Integration of Ukraine: 
- An application requesting the issue of a one -time individual permit substantiating grounds 
and necessity to extend the a llowed deadlines for entering into  the customs territory of 
Ukraine of goods (performance of works, provision of services) imported under barter Agreements; 
- An application requesting a one-time individual permit filled out in observance with the form 
as set by the Ministry; 
- A conclusion of the Ministry or another central  executive power authority whereby a barter 
contract under which goods are be ing imported (works are perform ed, services are provided) 
is referred to those providing for production c ooperation, consignment, complex construction, 
supply of sophisticated technical items, sp ecial purpose goods, determining the period of 
possible excess of set timeframes for entering into the customs territory of Ukraine of goods 
(performance of works, provision of services) is sued pursuant to the Procedure as determined 
by Resolution No. 756 of the Cabinet of Ministers of Ukraine of 29 April 1999 On Specific Issues Pertaining to Regulation of Goods Excha nge (Barter) Operations in Foreign Trade; 
- A duly certified copy of a barter contract; 
- Duly certified copies of customs declarations accompanying import and export of goods 
(performance of works, provision of services) under respective barter contracts; and 
- A duly certified copy of a certificate of state registration of a business entity involved in 
foreign economic activity. 
The above package of documents must be filed no later than on the 15
th calendar date following 
expiration of the term for entering into the cust oms territory of Ukraine of goods (performance of 
works, provision of services) as established by the Law of Ukraine of 23 December 1998 
No. 351-ХІV On Regulation of Goods Exchange (Barte r) Operations in Foreign Economic Activity, 
i.e. 90 calendar days following the date of custom s clearance (customs declaration issue date) of 
goods imported under barter contracts. 
In the event that the said package of  documents is filed in violation of deadlines set for its submission, 
an applicant may be denied the issue of the requ ested permit and this matter may re-considered only 
as long as a full set of documents is filed.  WT/ACC/UKR/130 
 Page 31 
 
 
 Question 81 
Regarding the reply to Question 27 of WT/ACC/UKR/126 and relevant entries in Table 12(b) of 
WT/ACC/SPEC/UKR/5/Rev.2, we remain concer ned by the import approval requirements in 
relation to precious metals and alloys and precious stones and the GATT Article XX(c) justifications provided for import approvals. 
We seek the elimination of the import approval  requirements for all of these products by the 
date of accession.  Please replace the references to Article XX(c) in Table 12(b) with a date for 
the elimination of these measures. 
Answer:
 
The approval requirements in relation to "precious  metals and alloys and precious stones" do not 
apply. 
Question 82 
Regarding the reply to Question 28 of WT/ACC/UKR/126 and the relevant entry in Table 12(b) 
of WT/ACC/SPEC/UKR/5/Rev.2, we remain concerned by the GATT Article XX(g) justifications provided for import approvals for s crap metal.  Scrap metal is not an exhaustible 
natural resource.  The suggested alternative Articl e XX(b) justification is also without merit. 
We seek the elimination of the import approval  requirements for all of these products by the 
date of accession.  Please replace the reference to  Article XX(g) in Table 12(b) with a date for 
the elimination of this measure. 
Answer:
 
This question is under the review now.  The Wo rking Party members will be informed about the 
decision of this review. 
Question 83 
Regarding the reply to Question 29 of WT/ACC/U KR/126, we would consider activity licensing 
requirements for importation of products listed in Table 6(a)  of WT/ACC/SPEC/UKR/5/Rev.2 
(other than narcotics, psychotropic substances an d precursors) to not be an appropriate basis 
for measures for protecting consumers against d eceptive practices and ensuring protection of 
intellectual property rights. 
We seek the elimination of the activity li censing requirements for these products (except 
narcotics, psychotropic substances and precursors) by the date of accession.  Please replace the 
references to Article XX(d) in Table 6(a) with  dates for the elimination of these measures. 
Answer:  
This question is under the review now.  The Wo rking Party members will be informed about the 
decision of this review. 
Question 84 
We refer to the information provided on the right to import in order engage in importation or 
exportation of the products listed in Ta ble 6(b) of WT/ACC/SPEC/UKR/5/Rev.2. WT/ACC/UKR/130 
Page 32  
 
 We seek the elimination of all of these requireme nts by the date of accession.  Please replace the 
references to Article XX(b and d) in Table 6(b) with dates for the elimination of these measures. 
Answer:
 
This question is under the review now.  The Wo rking Party members will be informed about the 
decision of this review. 
Question 85 We appreciate the reply to Question 30 of WT/ ACC/UKR/126 and note the inclusion of details 
of these measures to in Table 12(c) of WT/ACC/SPEC/UKR/5/Rev.2. 
We would appreciate advice as to whether or not these import licensing requirements are 
automatic within the meaning of Articles 1 and 2 of the Agreement on Import Licensing 
Procedures – that is are: 
- all legal and natural persons seeking to import  those products equally eligible to apply 
for and obtain such licenses? 
- licence applications able to be submitted on any working day prior to the customs 
clearance of the goods? 
- appropriately completed applications a pproved in all cases and in a period not 
exceeding ten working days? 
- there no reasons for refusing a licence and no circumstances under which a licence is 
able to be refused? 
Answer:
 
All business entities in Ukraine, irrespective of their ownership form, enjoy equal rights in respect to 
filing an application requesting an issue of a licence to import a good in question (Article 2, 
paragraph 2a(i) of the Agreement On Import Licensing Procedure). 
Pursuant to the Law of Ukraine On Foreign econo mic Activity of 16 April 1991, an application 
requesting the licence, as well as other documents may be filed on any working day preceding goods 
customs clearance (Article 2, paragraph 2a(ii) of the Agreement). 
A licence shall be issued inasmuch as the applicati on complete with other documents is executed in 
observance of requirements set by the law. The ti meframe for the licence issuance may not exceed ten 
business days following receipt of the application complete with necessary accompanying documents 
(Article 2, paragraph 2a(iii) of the Agreement). 
An application requesting the licence to goods impor t shall be accepted in all cases save for gross 
violations of the documents execution rules. Th e following circumstances may serve grounds for 
denying a licence: 
- Incompliance of the filed documents with requi rements of applicable laws of Ukraine; 
- in case that an applying business entity has viol ated provisions of the Law of Ukraine On 
Foreign Economic Activity of 16 April 1991 No. 959-XII; 
- in case that special sanctions were applied to  the applying business entity or its foreign 
counterpart in the form of an individual licensing regime or foreign economic activity 
termination pursuant to Article 37 of the Law of Ukraine On Foreign Economic Activity; and 
- in case that the applying business entity or its  foreign counterpart have breached laws 
governing foreign economic activity.  WT/ACC/UKR/130 
 Page 33 
 
 
 An application may not be rejected on the ground of minor errors made in documents supporting the 
request for the licence issuance to th e extent that these errors do not alter principal data contained in 
the application. The data covered by terms and c onditions of the foreign economic contract shall be 
deemed principal (Article 1.7 of the Agreement). 
Question 86 
If all of the above criteria are met, we would ask Ukraine to indicate in column 5 of Table 12(c) 
the rationale for the automatic licensing require ment (e.g., to monitor trade flows) and the 
relevant WTO provision (Articles 1 and 2 of the Agreement on Import Licensing Procedures).  Could Ukraine also comment separately on the ci rcumstances leading to the imposition of the 
requirement? 
Answer:
 
The described above licensing procedure is used to monitor commercial flows.  It should be noted in 
this connection that goods in question are not s ubject to any other administrative procedures in 
Ukraine (Article 2.2.b of the Agreement).  
Question 87 
If there are reasons or circumstances under wh ich a licence could be refused, we would ask 
Ukraine to transfer the relevant entries to Table 12(a) or 12(b), and provide appropriate details. 
Answer:  
The above mentioned grounds for denying a licence appl y on a general basis irrespective of a type of 
goods involved. 
Question 88 
If there are no reasons for refusing a licence a nd no circumstances under which a licence is able 
to be refused but any of the criteria of Article 1 or 2 of the Agreement on Import Licensing Procedures are not met, we would ask that Ukrain e provide details of the steps it will take to 
bring the licensing requirement concerned into conformity with the relevant provision of 
the Agreement by the date of accession. 
Answer:
 
Ukraine will apply automatic licensing as long as the effect of factors necessitating its introduction 
will continue, and will remain in place until the tim e when administrative goals underlying this form 
of licensing may be achieved in a more appropriate way as envisaged by Article 2.2.b of the Agreement. 
Question 89 
We would appreciate undertakings that Ukraine will refrain from the introduction of import 
quotas for meat both prior to and after accession  to the WTO, and that it will abide by the 
prohibition on seeking recourse to such me asures under Article XI:1 of GATT 1994 and 
Article 4 of the Agriculture Agreement. WT/ACC/UKR/130 
Page 34  
 
 Answer:
 
This question is under the review now.  The Wo rking Party members will be informed about the 
decision of this review. 
- Customs valuation 
Question 90 
The concerns and questions raised in our previous comments appear  to be adequately reflected 
in the draft Working Party report.  Ukraine has st ated that it would be amending its legislation 
to comply with the WTO Valuation Agreement, and we look forward to the new legislation that 
will implement the missing provisions that have been identified. 
Answer:  
The first draft of Amendments to the Customs Code and the first Draft of Customs Order on 
Interpretative Notes have been prep ared.  They are expected to be finalized by the end of June 2005 
and adopted during the second half of 2005. 
Question 91 
Paragraph 134:  Has the draft law amending the Customs Code and incorporating the 
Interpretative Notes of the Customs Valuation Agr eement been drafted yet?  What is the status 
of adoption of this draft? 
Answer:  
The interpretative notes on the Agreement on Applica tion of Article VII of the General Agreement on 
Tariffs and Trade of 1994 will be adopted in the Orde r of the State Customs Service of Ukraine.  The 
first Draft of the Customs Order on Interpretative No tes has been prepared.  It is expected to be 
finalized by the end of June 2005 and ad opted during the second half of 2005.   
Question 92 
Paragraph 135:  This paragraph indicates th at "confidential business information could be 
disclosed by court order, in connection wi th criminal investigations conducted by law 
enforcement agencies and the tax administration, or if secrecy could endanger the life or health 
of the population." According to Article 10 of th e Agreement on customs valuation, confidential 
information cannot be disclosed without the speci fic permission of the person concerned except 
in the context of judicial proceedings.  There are no such cases as danger for the life or health of 
the population foreseen by this article.  
Although we understand the need and right to pr otect life and health of the population, has 
Ukraine envisaged alternatives to protect at the same time the health and life of the population 
and the confidential business information? 
Answer:  
The provision referred to in Paragraph 135 is a general provision of the Law of Ukraine "On 
Information" No. 2657-XII of 2 October 1992.  Th e Article 263 of the Customs Code of Ukraine 
stipulates that Information provided by a Declarant and identified as containing commercial secret or 
being confidential may be used by a customs au thority exclusively for customs purposes and may  WT/ACC/UKR/130 
 Page 35 
 
 
 under no circumstances be disclosed, passed to th ird parties including other power bodies without a 
Declarant's special permission. 
- Rules of origin 
Question 93 Has Ukraine provided to the Working Party the supplementary legislation referred to in the 
paragraph to implement the requirements of Ar ticle 2(h) and Annex II, paragraph 3(d) of 
the Agreement on Rules of Origin? 
Paragraph 146 provides the basis for a commitment in this area.   
Answer:
 
The requirements of Article 2(h) and Annex II, Para graph 3(d) have been implemented in Amendment 
No. 1443 dated 28 October 2004 to Cabinet of Ministers Resolution No. 1864 dated 
12 December 2002. 
- Other customs formalities 
Question 94 The use of non-governmental facilities to establish classification of imports is problematic, in 
that the normal protections of WTO provisions would not necessarily be observed, nor would 
the right of appeal to Ukrainian customs au thorities and subsequently an "independent 
tribunal" be guaranteed. 
Please provide additional information on how importers recourse to the Chamber of Commerce 
is required and handled, and the reasons why Uk raine's customs service is not responsible for 
these services.  When will the customs serv ice resume classification of imports? 
Answer:
 
The Customs Service of Ukraine is the main body r esponsible for classification of imports.  In case of 
any disputes regarding classification, importers have the right to immediately appeal to higher organ 
within the Customs Service or court. 
There is no obligation on importers to approach the Chamber of Trade and Commerce.  It is the 
decision of importers whether or not to approach the Chamber of Trade Commerce for consultation or 
expert opinion regarding classification.  
According to Article 11(2) of the Law on Chambers of Trade and Commerce No. 671 of 
2 December 1997, methodological and expert documen ts issued by the Chambers of Trade and 
Commerce within their competence have mandatory a pplication on the whole territory of Ukraine.   
Competence of Chambers of Commerce, inter alia , include attestation and issuance of certificates of 
origin of goods, certificates of determining the products of own production of enterprises with foreign 
investment, and other documents related to carryin g out foreign economic activities.  As such, an 
expert opinion by the Chambers of Trade and Co mmerce on classification of imports should be taken 
into account by the Customs Service. 
However, according to the 2002 Customs Code part 2 of Article 313 state that decisions of customs 
organs relating to classification of goods for customs purposes are mandato ry for companies and WT/ACC/UKR/130 
Page 36  
 
 citizens. Give that the Customs Code is a specific law and is a more recent law, the provisions of the 
Customs Code prevail. A such, th e Customs Service is the authority in charge of classification of 
goods. 
- Anti-dumping, countervailing duties, safeguard regimes 
Question 95 
Paragraphs 148-150:  Does Ukraine apply th e principle of the lesser duty rule in its 
antidumping investigations in order to minimize the cost and burden of these investigations for 
foreign exporters?  Could the authorities provide a full list of the antidumping measures imposed in the last five years? 
Answer:
 
Ukraine applies the principle of the lesser duty in its antidumping investigations in accordance with 
Article 16 of the Law on Protection of the Natio nal Producer against Dumped Imports.  Draft 
amendments to the said law further strengt hen the application of this principle. 
Table 1 – Anti-Dumping Measures Imposed during Period 2000-2005  
Commodity that is subject to 
the Anti-dumping 
Investigation Country of 
Origin of the 
Commodity Results of Investigation and Measures Taken 
ANTI-DUMPING INVESTIGATIONS 
Artificial fur and 
Articles thereof  
(HS code – 4304 00 00) 
Pile fabrics and terry fabrics  (HS code - 6001) Republic of 
Belarus On 23 February 2001, by Decision No. AD-15/2001/52-54 
of the Interdepartmental Commission on International 
Trade, final anti-dumping measures, in the form of an anti-
dumping duty for artificial fur – 179.70%; pile fabrics – 53.29% (of the customs value of the commodity, were 
introduced for a peri od of 5 years. 
Electric filament lamps  
(HS code – 8539 22 90 00) Russian 
Federation On 7 December 2000, by De cision No. AD-11/2000/52-
39А of the Interdepartmental Commission on International 
Trade, final anti-dumping measures in the form of a anti-
dumping duty in the amount 97.50% of the customs value of the commodity, were introduced for a period of 5 years. 
Fiberboard of wood  
(HS code- 4411 11 00 00) Republic of 
Belarus On 12 July 2002, Decision No. AD-45/2002/52-61 of the 
Interdepartmental Commission on International Trade, 
final anti-dumping measures, in the form of an anti-dumping duty in the amount of 68.75% of the customs 
value of the commodity, were introduced for a period of 5 
years.  
Crossing pieces  (HS code - 8608 00 10 00) Russian 
Federation On 5 July 2002, by Decision No. AD-43/2002/52-63 of the 
Interdepartmental Commission on International Trade, 
final anti-dumping measures, in the form of an anti-
dumping duty in the amount of 59.4% of the customs value of the commodity, were introduced for a period of 5 
years.  
Ruberoid  
(HS code- 6807 10 1000 Republic of 
Belarus On 12 July 2002, by Decision No. AD-47/2002/52-62 of 
the Interdepartmental Commission on International Trade, final anti-dumping measures, in the form of an anti-
dumping duty in the amount of 75% of the customs value 
of the commodity, were introduced for a period of 5 years.  WT/ACC/UKR/130 
 Page 37 
 
 
 Commodity that is subject to 
the Anti-dumping 
Investigation Country of 
Origin of the 
Commodity Results of Investigation and Measures Taken 
Electric lamps 
(HS code – 8539 22 90 10) Kyrgyz 
Republic  On 27 December 2002, by Decision No. AD-62/2002/52-
65 of the Interdepartmental Commission on International 
Trade, final anti-dumping measures, in the form of an anti-
dumping duty in the amount of 38.31% of the customs 
value of the commodity, were introduced for a period of 5 years. 
Matches 
(HS code – 3605 00 00 00) Russian 
Federation 
Republic of Belarus On 12 September 2003, by Decision No. AD-81/2003/52-
123 of the Interdepartmental Commission on International 
Trade anti-dumping measures were taken in the form of an anti-dumping duty in the amount: 
 
1. for commodities originating from the 
Russian Federation:  
 
 - production of Private JSC "Plitsichprom"   - (Balabanovo) – 0%; and 
 - other producers – 8.8%. 
 2. for commodities originating from the 
Republic of Belarus: 
  - production of Private JSC "Pinskdrev" (Pinsk)- 
31.8%; 
 - production of Public JSC "Borisovdrev" 
(Borisov) – 68.7%; and 
 - other producers – 95.7%.  
The term of anti-dumping measures expires in 5 years.   
Fiber sheets 
(HS code – 4411 19 00 00) Poland On 25 March 2004, by Decision No.  АD-90/2004/52-111 
of the Interdepartmental Commission on International Trade, final anti-dumping measures were introduced in the 
form of an anti-dumping duty in the amount of 20.31% of 
the customs value of the commodity.  Individual anti-dumping duty for Ekoplyta S.A. Czarnkow, Polska, 
Przemyslowa 2 in amount of 17.9%. 
The term of anti-dumping measures expires in 5 years. 
Wood shaving sheets (HS - 4410 19 50 00)  Poland, Slovak 
Republic On 15 February 2005, by Decision No. AD 109/2005/52-
85 of the Interdepartmental Commission on International 
Trade, final anti-dumping measures were introduced in the 
form of an anti-dumping duty for Poland – 25.1%, Slovak Republic – 15.4% in the amount of the customs 
value of the commodity. Individual anti-dumping duty for 
production of "Kronospan Slovakia" – 11.7%.  The term of anti-dumping measures expires in 5 years. 
Citric acid (HS code – 2918 14 00 00) People's 
Republic of China On 25 March 2004, by Decision No. AD- 92/2004/52-113 
of the Interdepartmental Commission on International Trade, final anti-dumping measures were introduced in the 
form of an anti-dumping duty in the amount of margin 
between minimal import price (US$ 977 per ton) and the customs value of the commodity. The term of anti-
dumping measures expires in 5 years. WT/ACC/UKR/130 
Page 38  
 
 Commodity that is subject to 
the Anti-dumping 
Investigation Country of 
Origin of the 
Commodity Results of Investigation and Measures Taken 
Screw Compressor  Systems  
(HS 8414 80 71 00, 8414 40 
10 00, 8414 40 90 00) Belarus, 
Belgium, Italy, 
Finland     On 28 February 2005, by Decision No. АD-110/2005/52-
116 of the Interdepartmental Commission on International 
Trade, preliminary anti-dumping measures were 
introduced in the form of an anti-dumping duty for Belarus 
– 17.8%, Belgium – 58.6%, Italy – 43.2%, Finland – 49.5% in the amount of the customs value of the 
commodity.  The term of preliminary anti-dumping 
measures expires in one hundred and twenty days. 
 
Question 96 
Paragraph 154ff:  We understand that Ukraine is developing amendments to its trade remedies 
legislation that will address identified deficien cies.  The Working Party should review Ukraine's 
new legislation on these issues.  Has the legislat ion been provided to the Secretariat for review 
by the Working Party? 
Answer:  
Draft Amendments to the Law on the Applicat ion of Safeguard Measures No. 332-XIV dated 
22 December 1998 has been submitted to the Parlia ment and is registered as Draft 7127.  Draft 
Amendments to the Law on Protection of Domes tic Producer from Dumped Imports No. 330-XIV of 
22 December 1998 has been also submitted to Pa rliament and is registered as Draft No. 7117. 
English copies of both drafts will be submitted to the WTO Secretariat.  
Question 97 
Paragraph 156:  Ukraine indicated that it wo uld not apply any antidumping, countervailing or 
safeguard measure until it had notified and impl emented appropriate laws in conformity with 
the relevant provisions of the WTO Agreements on the Implementation of Article VI of GATT, 
on Subsidies and Countervailing Measures, and on Safeguards. From what precise point in time 
would this commitment become effective? 
Answer:  
From the date of WTO Accession. 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 98 We seek the elimination of the export tax of € 30 per ton on ferrous scrap and would welcome a 
clarification on Ukraine's intentions to eliminate this tax. 
Answer:
 
As Ukraine stated in document WT/ACC/UKR/ 125, from the date of accession it commits to reduce 
the export duty on scrap metals (7204 - Ferrous w aste and scrap; re-melting scrap ingots of iron or  WT/ACC/UKR/130 
 Page 39 
 
 
 steel) during the first year from € 30 to € 25 per ton, and during the second year – from € 25 to 
€ 18 per ton. 
Question 99 
In addition, Ukraine's minimum export prices ra ise serious questions of whether they act to 
create artificially low internal prices for export able goods.  We would appreciate information on 
Ukraine's plans for eliminating this measure.  
Answer:  
The minimum indicative export prices were not applied with the aim of creation of low internal prices 
on exports.  These prices regulate the sale price of Ukrainian goods at the foreign markets and do not 
relate to trade on the domestic market.  
The minimum indicative export prices in this case were applied with the goal to guarantee the sale of 
Ukrainian products at the estimated cost, which was set  at the destination market.  It provides for the 
opportunity to avoid the application of trade restrictive measures against Ukrainian exporters and to preserve the current outlets for the national producers.   This measure is applied, since the sellers of 
Ukrainian sensitive products do not always estab lish prices corresponding to the average market 
prices, which, in its turn, results in th e restrictive measures taken by the importer.  
- Export restrictions 
Question 100 We seek Ukraine's Agreement to eliminate its export bans applied for economic reasons, in 
particular the ban on nonferrous scrap, and to revi se its export licensing fee to relate it to the 
cost of the licensing program, not the value of the export.  This should be reflected in the Draft 
Report. 
In this regard, we also support the sec ond commitment text in paragraph 177. 
Answer:
  
Ukraine prepared the draft Law "On Export Duty on  Wastes and Scrap of Non-Ferrous Metals and 
Steel Alloys" regarding the replacement of prohibiti on on exports of scrap non-ferrous metals with 
introduction of the export duty for the said products, which will shortly be s ubmitted for consideration 
to the Verkhovna Rada of Ukraine. 
Besides that, in order to change the system of paym ents for export licenses, so that they reflected the 
actual expenditures for the rendered services, the Cabinet of Ministers of Ukraine adopted a Resolution "On the Amount of the State Fee for Issuing Export (Import) Licenses" No. 362 of 18 May 2005, which envisages a fixed amount of the State fee for issuance of an export licence 
instead of paying in ad valorem  equivalent to the contract value. 
Question 101 
In Question 33 of document WT/ACC/UKR/126,  we referred to advice in the reply to 
Question 53 of document WT/ACC/UKR/120 that exports of scrap metals and primary metallurgical products of copper are banned if th ey are intended for processing abroad and the 
processed products are intended to be imported.  In reply, Ukraine stated that in accordance WT/ACC/UKR/130 
Page 40  
 
 with Article 9 of the Law "On Scrap Metals", exportations of scrap metals are prohibited 
regardless of their intended use. 
Are there provisions of any law or legal act which ban exports of scrap metals if they are 
intended for processing abroad and the proces sed products are intended to be imported? 
Answer: 
 
Yes. According to Article 9 of the Law of Ukraine "On Scrap Metal", it is prohibited to export outside 
the customs territory of Ukraine the raw material s of scrap alloy ferrous metals, scrap non-ferrous 
metals, primary metallurgical products in the form of ingots, blocks, slices and other semi-processed 
products of crude cooper (including anodes). 
Question 102 
In Question 33 of WT/ACC/UKR/126, we sought th e elimination of the ban on exports of scrap 
metals and copper ores.  Ukraine replied that th ere was no ban on the export of copper ores, 
and that the government was planning to review the ban on exports of scrap metals. 
We seek the elimination of all remaining bans on  the exportation of these products by the date 
of accession, regardless of whether or not they  are intended for processing abroad and the 
processed products are intended to be imported.  Accordingly we request the replacement of the 
WTO justification (which we do not consider to be relevant to these products) in Table 17(a) of 
WT/ACC/SPEC/UKR/5/Rev.2 with a date for the elimination of the export prohibitions on 
waste and scrap of non-ferrous metals. 
Answer:  
The Cabinet of Ministers of Ukraine adopted a Draft Law "On Export Duty on Wastes and Scrap 
Non-Ferrous Metals and Alloy Steel" on 26 May 2005 .  The Draft provides for the elimination of the 
ban on export of scrap non-ferrous metals, and will be introduced into  the Verkhovna Rada of Ukraine 
in the nearest future. 
Question 103 
We are unable to agree with Ukraine's st atement, in the reply to Question 34 of 
WT/ACC/UKR/126, that the prohibitions on the export of scrap metals generated in military 
units, military institutions and military educ ational establishments of the Armed Forces of 
Ukraine and in other military formations, and on  the export of parts and units of machines, 
ships, vessels, military equipment and machin ery, railroad rolling stock in an assembled 
condition written off as scrap metal, are cove red by the national security exceptions of 
Article XXI of GATT 1994.  There is no national security issue involved.   
We seek the elimination of the bans on the ex portation of these products by the date of 
accession.  Accordingly we request an appropriate entry in a revised Table 17 of WT/ACC/SPEC/UKR/5/Rev.2 that includes details  of these measures and a date for their 
elimination. 
Answer
:  
Please see the answer to the previous Question.  WT/ACC/UKR/130 
 Page 41 
 
 
 Question 104 
We would interpret Ukraine's reply to Questio n 35 of WT/ACC/UKR/126 to mean that, because 
the A quota for sugar has never been filled in aggregate and because B quotas for sugar have 
never been required to be filled, the questions of restricting the amounts sold internally by 
individual sugar owners to the limits of the A quota  and of ensuring the B quota is supplied by 
individual sugar owners have never arisen.  Accordingly, Ukraine's sugar quota system to date, 
has neither led to prohibitions being specifica lly applied to the exports of individual sugar 
owners that would be inconsistent with Arti cle XI of GATT 1994, nor to requirements for 
individual sugar owners to export to particul ar markets that would be inconsistent with 
Article I of GATT 1994. 
If this interpretation is not correct, we would appreciate further clarification. Answer:
 
The understanding of Ukraine's comments is correct.  
Question 105 
We would presume, however, that, in the event of the A quota not being filled in aggregate, 
there would still be a general prohibition on the export of sugar that would be inconsistent with 
Article XI of GATT 1994 and, in the event of the B quota being required to be filled, Ukraine's 
sugar system would still require the application of  measures to divert the export of sugar to 
particular markets, inconsistently with Article I of GATT 1994. 
We would accordingly expect entries for these expo rt restrictions to be included in Table 17 of 
WT/ACC/SPEC/UKR/5/Rev.2, and would expect the elimination of these measures by the date 
of accession. 
Accordingly, we would expect the Law of Ukraine "On the State Regulation of Sugar 
Production and Sale" No. 758 of  17 June 1999 to be repealed by the date of accession. 
Answer:  
The government of Ukraine has developed a draft la w with respect to abolition of B and C quotas and 
requirements posed to mandatory exportation of ra w cane sugar. Currently, this draft law is being 
reviewed by the respective speci al committee of the Parliament. 
Question 106 
In the light of the reply to Question 36 of WT /ACC/UKR/126, we would be grateful for an 
indication of whether the legal provision (mentioned in the reply to Question 53 of WT/ACC/UKR/120) authorizing the imposition of restrictions on the export of ferrous metal 
scrap by the Cabinet of Ministers, depending on the need for ferrous metal scrap, is still in 
force. 
If this legal provision is still in force, we woul d expect it to be eliminated by the date of 
accession. 
Answer
:  WT/ACC/UKR/130 
Page 42  
 
 There are no restrictions on export of scrap ferrous me tals in Ukraine.  The noted group of goods is 
subject to the application export duty.  The expor t duty rates for scrap ferrous metals shall be 
liberalized gradually. 
Question 107 
We welcome Ukraine's reply to Question 37 of WT/ACC/UKR/126 concerning voluntary export 
restraints. 
Accordingly, we would ask Ukraine to indicate in Tables 17(c), 17(d) and 17(e) of 
WT/ACC/SPEC/UKR/5/Rev.2 that the date of elimin ation of the measures in those tables will be 
the date of its accession to the WTO, and to indi cate in Table 17(f) that the date of elimination 
of the measures in that table will be the date of  the Russian Federation's accession to the WTO. 
We appreciate Ukraine's undertaking to ame nd Paragraph 15 of Article 2 of the Law of 
Ukraine No. 2761-III of 4 October 2001 "On Amendments to the Law of Ukraine 'On Operations with Raw Materials Supplied on a Tolling Basis in Foreign Economic Relations'".     
Answer:
   
Ukraine does not object to  the proposed amendments. 
Question 108 We would expect the elimination of all quantit ative export restrictions in Table 17(b) of 
WT/ACC/SPEC/UKR/5/Rev.2 and of all export approval requirements relating to products 
falling to HS headings 2616, 2843,  7018, 7103, 7104 and 7105 in Table 18(c) no later than the 
date of accession.  These measures are either not appropriate to the coverage of exceptions under GATT Article XX(c) or not relevant to the purpose of those exceptions (or both), and 
would not conform to the requirements of the chapeau of GATT Article XX.  We remain 
unconvinced that the measures on gold and silver are significant measures of currency control in Ukraine.  We would expect all references to GATT Article XX(c) to be replaced by dates of 
elimination. 
Answer:
  
Ukraine took note of this comment. 
Question 109 
We would expect the elimination by the date of  accession of export licensing and prior approval 
requirements for export applicable to  all products in Table 18(a) of 
WT/ACC/SPEC/UKR/5/Rev.2 for which a justific ation was provided under Article XX(d) or (g) 
of GATT 1994.  We would also expect all referen ces to GATT Article XX(d) and (g) be replaced 
by dates of elimination.  We note Ukrain e's admission in the reply to Question 43 of 
WT/ACC/UKR/126 that measures applicable to  a number of these products are not made 
effective in conjunction with restrictions on production and consumption – a requirement that 
must be met for an exception under GATT Article (g) to apply. 
Answer:   
Ukraine took note of this comment.  WT/ACC/UKR/130 
 Page 43 
 
 
 Question 110 
We appreciate the information provided by Ukraine in response to Questions 47-72 of 
WT/ACC/UKR/126 concerning minimum indicative export prices, including their nature, product coverage and linkages to export contract registration re quirements, "special regimes", 
"special import procedures" (no long er applied) and the application of ad valorem  export 
duties.  
Ukraine's responses indicate that:  the minimum i ndicative export prices are in fact mandatory 
export approval requirements contingent on non-observance of a minimum export price and 
they are intended to maintain arbitrary cust oms values for the exports to which they are 
applied.  We would request that the substance of our comment in Question 72 of 
WT/ACC/UKR/126 be reflected in the report, incl uding our expectation and request.  We also 
seek a response from Ukraine. 
Answer
:  
Ukraine does not object to reflecting the releva nt comment in the text of the Draft Report. 
Question 111 
We are pleased to note in Ukraine's reply to Question 47 of WT/ACC/UKR/126 that it is 
introducing a Presidential Decree to cancels th e requirement to register export contracts. 
When will the Presidential Decr ee likely to come into force? 
Answer:   
The Cabinet of Ministers of Ukraine approved on 26 May 2005 the Draft Order of the President "On 
Considering Invalid Some Orders of the President of Ukraine", which was drafted with the goal of 
liberalizing the export of goods from Ukraine.  Th e implementation of the Draft Order will provide 
for the simplification of the procedure for export of goods from the customs territory of Ukraine, since 
the necessity to register the foreign economic (export)  contracts shall be eliminated.  The above Draft 
Order is to be signed by the President in the n earest future, which shall be notified by Ukraine. 
Question 112 
We seek direct responses from Ukraine to the concerns raised in Question 73 of 
WT/ACC/UKR/126, and the reflection of those co ncerns and Ukraine's responses in the report. 
Answer:   
Ukraine has nothing to add to its answer pr ovided to Question 73 of document WT/ACC/UKR/126, 
especially with regard to the Law of Ukraine "On Export Duty for Livestock and Leather Raw 
Materials" No. 180/96 of 7 May 1996.  The Law a llows the agricultural producers, who are legal 
entities, to export the goods mentioned in the Law w ithout paying an export duty.  This provision does 
not apply, however, to the producers if they ex port young cattle weighting not more than 350kg and 
leather raw materials (the relevant UCC FEA co des:  4101, 4102, 4103 90 00 00) of their own 
production. Ukrainian legislation does not provide for other exemptions as regards the export duty 
payment.  WT/ACC/UKR/130 
Page 44  
 
 Question 113 
Further to Question 74 of WT/ACC/UKR/126, we  continue to look forward to Ukraine's 
schedule for the elimination of all export duties. 
Answer:
 
Ukraine does not plan to do the schedule for the elim ination of all export duties.  Along with that, the 
Laws of Ukraine were drafted on the reduction of export duties for scrap ferrous metals, livestock, 
certain oil seeds, in order to eliminate the prohi bition of export of scrap non-ferrous metals.  The 
Drafts shall be introduced into the Verkhovna Rada of Ukraine in the nearest  future. Ukraine will 
additionally notify of the adoption thereof. 
Question 114 
Regarding the reply to Question 75 of WT/ACC/U KR/126, we would appreciate an update on 
the foreshadowed revision of export licence fees to  reflect the actual cost of services rendered. 
Answer:  
In order to amend the system of payment for export licenses so that they refl ected the actual expenses 
for the rendered services, the Government adopted th e Resolution "On the Amount of the State Duty 
for Issuing Export (Import) Licenses" No. 362 of 18 May 2005 regarding the imposition of a fixed 
amount of the State fee to the State budget for issu ing an export licence in the regime of automatic 
and non-automatic licensing, rather than fee in ad valorem  equivalent to the value of contract.  
Question 115 
We seek clarification as to whether Ukraine is proposing the application of export quotas for 
grain.  If this is the case, we seek details of the proposals Ukraine is considering and how these 
will be implemented. 
Answer:   
Ukraine does not envisage applying the export quotas for grain. 
C.  INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies  
Question 116 
Paragraphs 179, 180 and 190-196:  We reiterate that within document 
WT/ACC/SPEC/UKR/5/Rev.2, Ukraine has ackno wledged non-compliance with Article 3 of 
the Agreement on Subsidies and Countervailing Measures for the Law "On Rates of Excise 
Duty on Motor Vehicles" and referring to transitional periods under Articles 28 and 29 of the SCM Agreement.   
Ukraine must revise its commitment to bring it s support of the automotive industry into 
compliance with the WTO provisions.  Moreover, we would like to confirm that Ukraine will 
eliminate, upon accession, all incentives which meet  the criteria set forth in Article 3.1(a) and 
3.1(b) of the SCM Agreement.  WT/ACC/UKR/130 
 Page 45 
 
 
 Answer:  
The Law of Ukraine No. 2505-IV of 25 March 2005 eliminated the tax privileges for automobile 
producers and established the equal excise duty and VAT rates for the domestic and imported motor 
vehicles in line with the national treatment regime .  Connected with the elimination of the above 
mentioned privileges, provisions of Article 4 of the Law of Ukraine "On Stimulation of Automobile 
Production in Ukraine" on the determination of the co untry of origin of automobiles (rendered by the 
US party as the local content requirement), which were the basis for granting the above mentioned 
privileges, do not actually apply.  Along with this, in order to legislatively harmonize the provisions 
of this Law with WTO requirements, the Govern ment has approved on 26 May 2005 the Draft Law 
"On Amendment of the Law of Ukra ine "On Stimulation of Automobile Production in Ukraine" as to 
the elimination of Article 4.  The Draft was introdu ced into the Verkhovna Rada of Ukraine.  Ukraine 
will additionally inform on the adoption of this Draft Law. 
Question 117 
Paragraph 183:  We note that the Law "On State budget for 2004," suspends the VAT 
exemption for "certain domestic inputs (s ervices rendered by Ukrainian design and 
development enterprises)," except for enterprise s which signed contracts before the Law came 
into force.   Could Ukraine please provide exampl es of exactly what types of "certain domestic 
inputs" receive the VAT exemption?  Under what circumstances can the suspension be lifted?  
While we appreciate Ukraine's suspension of th e VAT exemption for "certain domestic inputs", 
it is our understanding that the exemption is co ntingent upon the use of domestic over imported 
goods.  Article 3.1(b) of the SCM Agreement prohibits subsidies contingent upon the use of 
domestic over imported goods. We  seek confirmation that Ukraine will permanently eliminate 
or revise the VAT exemption, ensuring that it s policies will be operated in conformity with 
WTO provisions upon accession.   
Answer:  
Please see the answer to the previous question regarding paragraphs 179, 180 and 190-196. 
Question 118 Paragraph 186:  It is noted that the suspensi on of VAT privileges for the aircraft construction, 
automotive, shipbuilding and aircraft construction  industries has not been extended under the 
Law "On State Budget for 2005."  However, Uk raine states this Law would be revised to 
include the suspension.  
Please provide a time line for when the revised Law will come into effect?   
Will Ukraine commit to the law comi ng into effect upon accession?   
Under what circumstances can the suspension be lifted?   Are the VAT exemptions under the Law "On State Budget for 2005" similar to the VAT 
exemptions under the Law "On State Budget for 2004"?   
Are these VAT exemptions contingent upon the use of domestic over imported goods? WT/ACC/UKR/130 
Page 46  
 
 Answer:
 
All VAT privileges in automobile and aircraft co nstruction and in ship building were eliminated 
pursuant to the Draft Law of Ukraine "On Amendment of the Law of Ukraine "On the State Budget for 2005" and Some Other Legislative Acts" No. 2505-IV of 25 March 2005.  
Question 119 
Paragraph 191:  Please confirm that the lo cal content requirement under the Law "On 
Stimulation of Automobile Production in Ukraine, " has been eliminated.  If it has not, please 
confirm that Ukraine, upon accession, will br ing its law "On Stimulation of Automobile 
Production in Ukraine" into conformity with the WTO provisions, including Article 3.1(a) and 3.1(b) of the SCM Agreement. 
We note that under the Law "On the State Budg et for 2004" suspends the VAT privileges for 
"domestically-produced" vehicles during 2004.  We would like to remind Ukraine, that under Article 3.1(b) of the SCM Agreement, subsidies contingent upon the use of domestic over imported goods, are deemed prohibited.  
We ask that Ukraine commit to revising the Law "On State Budget for 2004/2005" upon 
accession, such that Ukraine's policies are in co nformity with the WTO provisions, including 
Article 3.1(a) and 3.1(b) of the SCM Agreement.  Future budget legislation should not contain measures establishing prohibited subsidies. 
Answer:
 
Please see the answer to questions rega rding Paragraphs 179, 180 and 190-196. 
Question 120 
In paragraph 196, Ukraine indicated that, from the date of accession it would not maintain 
subsidies, including export subsidies, which meet the definition of a prohibited subsidy within the meaning of Article 3 of the SCM Agreement.  
Given the wide range of existing subsidies in  a large number of sectors, do the authorities 
already have a clear timetable in mind for the e limination of these subsidies to ensure adequate 
implementation? 
Answer:
 
The norms of the Law of Ukraine "On Amendment of the Law of Ukraine "On the State Budget for 
2005" and Some Other legislative Acts" No. 2505- IV of 25 March 2005 regulate the problematic 
issues of taxation, improve the principles of administering the taxes, eliminate the sectoral privileges and privileges for the businesses registered in specia l economic zones, at the territories of priority 
development and technological parks, on paying th e land tax, tax on corporate profit, import duty and 
VAT on imports.  The privileges are also eliminated/r educed in the sector of automobile construction, 
aircraft building, ship building and space industry.  WT/ACC/UKR/130 
 Page 47 
 
 
 - Technical barriers to trade, standards and certification 
Question 121 We appreciate the information provided and for the strong efforts Ukraine has made over the 
past few years to reform its sta ndardization system.  We would be interested in an update on the 
additional legislation contemplated, to ensu re that all mandatory requirements applied to 
imports meet WTO requirements prior to accession. 
Answer:
 
The finalized Draft Law on Standards, Technical Re gulations and Conformity Assessment Procedures 
amending the Law on Conformity Assessment No. 2406-III of 17 May 2001 and the Law on 
Standardization No. 2408-III of 17 May 2001 has been  submitted to Parliament for consideration. 
Question 122 Paragraph 199:  Ukraine has noted that approximately 80 per cent of its national standards are 
identical to international standards.  We r ecognize that bringing other legislation into 
conformity with international standards and norms is underway, however, but we do not have clarification on where Ukraine is in this process and exactly which standards are under 
revision.  We believe the action plan will aid our understanding of this process.   
Answer:
 
First sentence needs clarification. Ukraine has stated that since 200 1 it was ensured that in most 
sectors there were passed national standards identical to or harmonized with international standards in 
accordance with internationally accepted rules. The harmonization rate for the passed standards 
exceeded 80 per cent.  
Please see the action plan for harmonization of national standards and technical regulations. 
Question 123 
Paragraph 201:  We continue to have concerns about Ukraine's shelf-life standards.  Please 
submit the national standards for Working Party members to review. 
With regard to shelf-life standards imposed on imported fish products, Ukraine notes that 
manufacturer-determined shelf life is acceptable as confirmed by an official.  This does not 
reflect the actual situation at the port of entry and we remain concerned that these measures contradict the internationally accepted norms.  
We request clarity on Ukraine's efforts to bring these standards into conformity with 
international standards.   
Answer:
 
An English copy of Interstate Standard (DSTU) No. 1168-86 will be submitted to the WTO 
Secretariat. 
When consignment with imported fi sh arrives to the border of Ukraine, the Veterinarian Inspector 
verifies such consignment and shelf life (or expiratio n date).  If shelf-life exceeds the requirements in 
Ukrainian standards, the Veterinarian Inspector stam ps shelf-life stipulated in Ukrainian standards. WT/ACC/UKR/130 
Page 48  
 
 Ukraine is working on bringing its shelf-life sta ndards on imported fish products in accordance with 
international standards. 
Question 124 
Paragraph 202:  With regard to the Law "O n Standardization", we understand that the 
Ministry of Agriculture can impose technical reg ulations, for example the technical regulations 
on shelf life for fish.  However, we seek clar ity on if Ukraine intends to impose technical 
regulations on additional products.  If so, w ill this information be provided to the Working 
Party?  
Answer:
 
There are currently no intentions to impose any ne w technical regulations.  In case of imposition prior 
to accession, information will be provided to the Wo rking Party.  After accession, notifications will 
take place in accordance with the TBT Agreement. 
Question 125 
We would like to further note that technical regulations should not be maintained if the 
objective can be addressed in a less trade-rest rictive manner and encourage Ukraine have its 
legislation in compliance with the provisions of the TBT Agreement.   
Answer:  
The requirement that technical regulations should be maintained if the objective can be addressed in a 
less trade-restrictive manner is stipulated in the Draft Law on Standards, Technical Regulations and Conformity Assessment Procedures amending th e Law on Conformity Assessment No. 2406-III of 
17 May 2001 and the Law on Standardization No . 2408-III of 17 May 2001. Ukraine will ensure 
compliance with this requirement. 
Question 126 
We seek a commitment from Ukraine that it will be in full conformity with the obligations of the 
WTO TBT Agreement from the date of accession. 
Answer:
 
Ukraine commits to be in full conformity with the obligations of the WTO TBT Agreement from the 
date of accession provided adequate technical assistance from WTO Members.  Action Plan to achieve full harmonization of standards and t echnical regulations during period 2005-2011 is 
submitted. 
Question 127 
We remain concerned that Ukraine appears to be seeking a transition period (of unspecified 
duration) in which to bring its TBT regime in to conformity with the TBT Agreement.   Ukraine 
notes in paragraph 209 of document WT/ACC/SP EC/UKR/5/Rev.2 that it would ask for an 
implementation period and submit a work progr am spelling out the steps to be taken and the 
required timeframe.  We would hope to see Ukraine accept the commitment language in 
paragraph 210 to bring its regime into conformi ty with the TBT Agreement from the date of 
accession.  WT/ACC/UKR/130 
 Page 49 
 
 
 Answer:  
Ukraine will not apply any nationa l provisions upon accession that run counter to the TBT Agreement 
mandatory requirements.  State Committee for Tec hnical Regulation and Consumer Policy prepared 
Action Plan to achieve full harmonization of st andards and technical regulations during period 
2005-2011.  Please see the Action Plan. 
Question 128 We would be interested in further information on how work is progressing in relation to the 
draft Law "On Standards, Technical Regulati ons and Conformity Assessment Procedures", 
and in relation to amendments to bring exis ting legislation into compliance with the 
TBT Agreement. 
Answer:
 
The finalized Draft Law on Standards, Technical Re gulations and Conformity Assessment Procedures 
has been submitted to Parliament for consideration. 
- Sanitary and phytosanitary measures 
Question 129 
The section is much improved, and we look forwar d to reviewing the new laws, institutions, and 
procedures, and to understand how they will impr ove one of the most difficult areas in the 
accession.  We are most grateful that Ukraine ha s made the decision to bring the regime into 
conformity with the WTO SPS Agreement  
We would like additional information on the speci fic aspects of this reform that Ukraine feels 
will require extra time to implement.  
We would prefer a commitment for WTO consistency in this area upon accession. 
However, we still do not have a clear understandi ng of Ukraine's efforts to bring its SPS regime 
into compliance with the WTO SPS Agreement.  For example, Ukraine has committed to 
provide a revised action plan and English versions of draft legislation affecting trade in agricultural products before this Working Party meetin g.   It is imperative that we review this 
information in order to bring clarity to where we are in the accession process.   
Answer:
 
Ukraine is prepared to fully implement the SPS Agreement upon accession provided adequate 
technical assistance from WTO Members to modernize t esting laboratories, border inspection, control 
methods, and sampling procedures and to train rele vant personnel.  Ukraine has already drafted 
amendments to bring relevant SPS Laws into fu ll conformity with the SPS Agreement including 
substantive provisions, procedural and transparency  aspects.  Draft laws have been submitted to 
Parliament for consideration. 
Document WT/ACC/8 conformity charts were submitted to the WTO Secretariat and circulated as 
document WT/ACC/UKR/124 on 16 December 2004.  An  SPS harmonization plan is available in 
document WT/ACC/UKR/128. WT/ACC/UKR/130 
Page 50  
 
 Question 130 
Paragraph 213:  While some of the section has been modified to reflect specific legislative 
changes that are underway, many aspects to br ing Ukraine's SPS regime into conformity with 
the requirements of the SPS Agreement are not reflected. We would ask Ukraine to update. 
Answer:
 
Please see the reply to the previous question. 
Question 131 
Paragraph 216:  Has Ukraine submitted to the Supreme Rada the draft laws amending SPS-
related provisions contained in the Laws "On Vete rinary Medicine," "On Quality and Safety of 
Food Raw Material," and others? 
We further note that these Laws need to be WT O-consistent and based upon sound science.  For 
example, current legislation exists that prohibit s the importation of meat and meat products 
from animals treated with hormones. 
Recognizing the status of the WTO case against similar requirements in the European Union, 
we expect such legislation to be corrected a nd reflected in the aforementioned SPS provisions. 
Please provide a full description of efforts und erway to bring the SPS regime into conformity 
with WTO requirements, including which pieces of legislation are under review and the result 
expected for any pending changes (i.e., removal of the requirement that imported meat must be 
sourced from animals not treated with hormones). 
Answer:  
Draft laws have been submitted to Parliament and are to be adopted before end of 2005. 
For efforts to bring SPS regime into confor mity with WTO requirements, please see the SPS 
Harmonization Plan in document WT/ACC/UKR/128. 
Question 132 
Paragraph 220:  This section should further include commitments related to the establishment 
of an SPS Enquiry Point.   
Answer:  
The Resolution establishing Enquiry and Notification Point (including SPS matters) has been 
approved by the Cabinet of Ministers on 31 May 2005 No. 408.  
Question 133 
Paragraph 221:  We believe that all legislatio n including sub-legislation that outlines detailed 
requirements for agricultural and food products is  very much a part of Ukraine's legal regime 
and is governed by both the SPS and TBT Agre ements.  Therefore, Ukraine's legal regime 
cannot be considered WTO compliant until the sub-legislation is compliant.  WT/ACC/UKR/130 
 Page 51 
 
 
 We seek a commitment from Ukraine that it will be in full conformity with the obligations of the 
WTO SPS Agreement from the date of accession. 
Answer:  
Ukraine will fully implement the SPS Agre ement upon accession provided adequate technical 
assistance from WTO Members to modernize testing la boratories, border inspection, control methods, 
and sampling procedures and to train relevant pe rsonnel.  SPS Harmonization Plan is available in 
document WT/ACC/UKR/128.  
Question 134 
We are concerned that Ukraine appears to be seeking a transition period (of unspecified 
duration) in which to bring its SPS regime into conformity with the SPS Agreement.  In 
paragraph 221 of document WT/ACC/SPEC/UKR/5/ Rev.2, Ukraine only commits to having its 
legislation in compliance with the substantive provisions of the SPS Agreement.  We would hope 
to see Ukraine accept a commitment to brin g its regime into conformity with the 
SPS Agreement from the date of accession. 
Answer:  
Ukraine is prepared to fully implement the SPS Agreement upon accession provided adequate 
technical assistance from WTO Members to modernize t esting laboratories, border inspection, control 
methods, and sampling procedures and to train rele vant personnel.  Ukraine has already drafted 
amendments to bring relevant SPS Laws into fu ll conformity with the SPS Agreement including 
substantive provisions, procedural and transp arency aspects (see document WT/ACC/UKR/128). 
Question 135 
We note that in document WT/ACC/UKR/124 of  16 December 2004, Ukraine has provided an 
updated SPS check-list, but only on those commitments  it will make by the time of accession.  In 
paragraph 221 of the report, Ukraine notes that it will ask for an implementation period and 
will present a work program spelling out the steps to be taken to achieve full conformity and the 
time taken. 
Answer:  
Please see reply to previous question. 
Question 136 
Under item 9 of the check-list (WT/ACC/UKR/124), on regional conditions, we would note that 
the draft Ukrainian legislation cited does not s eem to cover the purpose of Article 6 of the 
SPS Agreement, which is to recognise that there ca n be different pest and disease prevalence in 
different regions within national borders.  We wo uld prefer that the language of Article 6 be 
reflected in the Ukrainian legislation. 
Answer:  
Under item 9 of the checklist (WT/ACC/UKR/124) on regional conditions, it is stated that the 
veterinary-sanitary status of Ukraine relative to th at of an exporting country will be taken into account 
when preparing, reviewing, revising, and adop ting veterinary-sanitary measures applicable to 
imported commodities . The term "veterinary-sanitary status" is defined in the law as "the status of a WT/ACC/UKR/130 
Page 52  
 
 country or a territory (facility) with respect to animal disease, determined according to the criteria 
specified by the relevant international organizations".  Note that the definition specifically refers to a 
territory and even to a facility. This means that th e veterinary-sanitary status of a facility such as a 
farm or animal breeding centre will be considered  when preparing, reviewing, revising and adopting 
veterinary-sanitary measures. 
In addition to the above provisions , we now understand that it would ha ve been appropriate to include 
in WT/ACC/UKR/124 relevant provisions of tw o additional articles. These articles establish 
principles for applying veterinary-sanitary measures to imported commodities. The first Article establishes requirements for consignments of commodities presented for import or transit. The 
relevant text is in ite m 4) of paragraph (1): 
(1) Import consignments of commodities shall: 
 1. Be free of notifiable diseases in compliance with the requirements established by the 
World Animal Health Organisation; 
 2. Be accompanied by an original internat ional veterinary certificate signed by a state 
inspector of veterinary medicine of the count ry of origin when so required by current 
veterinary-sanitary measures; 
 3. Be accompanied by an import permit when so required by current veterinary-sanitary 
measures; and 
 4. In the case of live animal imports, have originated from countries or zones free from 
notifiable diseases or, when recommended by  the World Animal Health Organisation, 
zones of low prevalence of notifiable diseas es within the country of origin, and not 
have transited through an area that is unde r restriction, as confirmed by a relevant 
international organisation or by the Veterina ry Administration of the country of origin 
or transit, for control of a notifiable di sease to which the live an imals are susceptible. 
Item 4) clearly permits importation of commodities from disease-free zones or zones of low 
prevalence of animal diseases w ithin the country of origin of  the commodities. Also, in the 
Article entitled "Permit for Import of Comm odities", the following provisions apply: 
(1) When specified in relevant veterinary-sanita ry measures, the import of commodities shall be 
subject to a permit issued by the Department. 
(2) The procedure for submission of the applica tion for obtaining the permit for import, as well as 
the format and content of the application shall be established by the Department.  Under no 
circumstances shall the decision on whether or not to issue an import permit take more than 
30 calendar days. 
(3) An import permit shall be issued if the following conditions are met: 
 1. Import of the commodities is not prohibite d due to the veterinary-sanitary status in 
the country of origin; and 
 2. The risk associated with import or trans it of the commodities is acceptable in relation 
to the appropriate level of an imal and related human health. 
(4) Factors to be considered that determine th e risk associated with importation of a commodity 
include: 
 1. The intended use of the commodity; 
 2. The geographic and other characteristics of Ukraine, the country of origin, and, when 
applicable, countries of transit that affect the ability of notifiable diseases to survive, 
establish, and spread;  WT/ACC/UKR/130 
 Page 53 
 
 
  3. The existence of state control programm es of animal diseases in Ukraine, the country 
of origin, and transit countries; and 
 4. The existence of zones free of notifiabl e disease or of low prevalence of notifiable 
disease in the country of origin, from which risks of transmission of such notifiable 
disease may be nil or minimal; 
The relevant provisions here are item 2) of paragrap h (3) and item 4) of paragraph (4).  We believe 
that these provisions are sufficient to fully cover the purpose of Article 6 of the SPS Agreement. 
- Trade-related investment measures 
Question 137 We would prefer a commitment for WTO consistency in this area upon accession, e.g., the 
commitment text in paragraph 226. 
Answer:
 
Ukraine agrees to the commitment text in paragraph 226. 
- State-trading entities 
Question 138 
Please provide further information on the activities of Kleb Ukrainy and the other unprivatized 
state-owned enterprises operating in the agricultu ral sector, particularly in light of the new 
Agricultural support law.  In addition, plea se provide information on the relative share of 
imports, exports, and economic ac tivity accounted for by state-owned and state trading firms in 
the agricultural sector.  
We reserve our position on other firms to be identified as state-trading enterprises.   
We appreciate Ukraine's commitmen t on state-trading enterprises. 
Answer:  
Ukraine will provide a conclusive report on state trading enterprises in July 2005. 
Ukraine accepts the commitment under paragraph 232. 
- Free zones, special economic areas 
Question 139 
We request that the Ukraine commit to eliminating, upon accession, any requirement or 
recommendation to use domestic over imported g oods under this program.  In this regard, we 
note the programs identified in paragraphs 234, 237, and 239. 
Please provide an estimated timeline of when the amendments to bring the language of 
Resolution No. 1199 into compliance will be  submitted for review by the Members. WT/ACC/UKR/130 
Page 54  
 
 Answer:
 
Government of Ukraine has adopted the Resolution of 30 May 2005 "On Amendment of the 
paragraph 3 of Model Agreement (Contract) for the Implementation of the Investment Project at the 
Territory of Priority Development, in Special  (Free) Economic Zone", which provides for the 
elimination of the WTO non-compliant provision stip ulating the privileges for goods (works, services) 
of Ukrainian production used in the course of im plementation of the investment project on equal 
terms with regard to the price, validity term, quality, etc. 
Question 140 
We support a commitment along the lines of  those contained in paragraph 243, and the 
understanding that Ukraine will eliminate, fr om the date of accession, benefits and 
requirements applied in the zones that violat e WTO provisions, and that duties and taxes 
foregone when goods or inputs are imported, will be  applied to exports from the zones into the 
rest of Ukraine. 
Answer:  
The Law of Ukraine No. 2505 "On Amendment of the Law of Ukraine "On the State Budget of 
Ukraine for 2005 and Some Other Legal Acts" of  25 March 2005 cancels the privileges for business 
entities registered in special econo mic zones, territories of priority development and technological 
parks without changing the principles of the effe ctive taxation mechanism, and without increasing a 
tax burden on goods manufacturers. In particular , the Law cancels the exemption from land tax, 
corporate income tax, import dut y and value-added tax on imports. 
- Government-mandated counter-trade and barter 
Question 141 
Are barter imports subject to normal import requi rements, tariffs, and taxes?  If so, this should 
be reflected in the text. 
Answer:  
Barter imports are subject to normal import requireme nts, tariffs, and taxes.  Ukraine does not object 
to include such information in the text of the report. 
- Agricultural policies 
Question 142 Progress in the domestic support aspects of th e section of the report on agricultural policies 
awaits finalization of the necessary technical wo rk on agricultural domestic support and export 
subsidy tables in the context of the plurilateral pr ocess on agriculture.  To enable this essential 
technical work to move forward, we look forwar d to the early adoption by Ukraine of a recent 
representative base period as a basis for approp riate commitments, as per the requirements of 
WT/ACC/4 – that is to say, a base period that would more accurately reflect: 
- current agricultural policies; 
- how those agricultural policies are currently applied; 
- the context in which those policies are currently applied; 
- on average, the level and composition of support currently provided; and  WT/ACC/UKR/130 
 Page 55 
 
 
 - on average, the level and composition of current agricultural production. 
Answer:   
Ukraine will prepare analytical mate rials with respect to a probabilit y of base period alteration in the 
context of current state policy on agriculture.  The definitive decision on amending the base period 
will be approved on the next Agriculture Plurilateral Meeting. 
Question 143 We believe the base period Ukraine wishes to us e is too distant to be representative and would 
hope Ukraine would commit to using the more  recent period of 2000-2002, and we would 
encourage the provision of revised tables for this  period or a more recent three year period if 
preferred. 
Answer:
  
Ukraine has prepared and circulated among the Working Party members its monitoring tables 
covering the 2000-2003 marketing period.  The fina l decision on amending the base period will be 
approved at the next plurilateral meeting on agriculture. 
Question 144 
We welcome Ukraine's commitments, reflected in paragraph 278 of the report, to bind 
agricultural export subsidies at zero and to no t seek recourse to special safeguard provisions 
under the Agreement on Agriculture, which is reflected in paragraph 278 of the report. 
In paragraph 267, Ukraine noted that it would amend the Law "On State Support to 
Agriculture in Ukraine" prior to WTO accession  to address concerns that some provisions were 
not consistent with WTO requireme nts.  We would be grateful if further information could be 
provided concerning proposed amendments to the Law. 
Answer:   
A respective draft law has been developed and at  present this bill is undergoing approvals of 
competent central power authorities.  
Question 145 
Technical comments on tables for 2000-2002 in  WT/ACC/SPEC/UKR/1/Rev.9 of 23 April 2004. 
We thank Ukraine for the technical changes in the tables provided in WT/ACC/SPEC/UKR/1/Rev.9 on 23 April 2004. 
We note that the commitments continue to be pr esented in US dollars, and request that Ukraine 
undertakes the commitments in local currency. 
Answer:
 
This appears impossible in relation to the 1994-1996 period and Ukraine's reasoning for that has been 
communicated by Ukraine to the Working Party members on numerous occasions.  WT/ACC/UKR/130 
Page 56  
 
 Question 146 
Ukraine has removed the entry under (a) Ge neral services, (2) rural infrastructure 
development, and has now footnoted the entry, sa ying they were not applied.  The removal of 
this entry appears to be in response to comment s made by WTO members about what needs to 
be scheduled and what is not required to be scheduled. 
We are pleased to see that the negative values have been removed from the tables. 
We note that the external reference prices in co lumn 5 of Table DS:5 have been recalculated 
and seem to have taken into account commen ts from WTO members on how the external 
reference prices should be calculated. 
We see that column 6 is now headed eligible purchased production (rather than eligible 
production).  The figures remain unchanged on eligible production.  We continue to request 
that Ukraine include figures on total production. 
Answer:
 
Paragraph 8 of Annex 3 to the Agreement On Agricu lture contains a definition of "the quantity of 
production eligible to receive the applied administ ered price" rather than the "total production". 
Therefore, the choice of the amount of production procured by the state in case of Ukraine over the 
period of 1994 – 1996 as eligible production appears to be correct.  Explanations of specific features characterizing this mechanism pertinent to a transition economy were on numerous occasions provided by Ukraine. 
 - Sugar policies
 
Question 147 
Ukraine has provided a considerable amount of u seful factual information on its sugar policies 
in the replies to Questions 80 to 106 of WT/ACC/UKR/126.  Before proceeding to discuss redrafting text for the report, we would like Ukra ine to reconsider the continuation of its sugar 
quota system.  As we have pointed out, this  system gives rise to concerns over Ukraine's 
conformity with its future WTO obligations on export restrictions and export subsidies, and 
possibly others.  The elimination of this system  would not affect its right to provide price 
support to beet producers within the lim its of its domestic support commitments. 
Answer:
   
Please see the Answer to Question 105. 
Question 148 
One further issue we would like to clarify at this  stage is whether or not internal purchases and 
sales of imported refined sugar are subject to  the same mandatory minimum price requirements 
that apply to internal purchases and sales of domestic beet origin sugar and domestically 
refined cane origin sugar.  Ukraine's reply to  Question 94 of WT/ACC/UKR/126 appears to say 
that the price of imported refined sugar is aff ected by prices on domestic market, but does not 
clarify whether the imported refined sugar is subject to mandatory minimum price 
requirements applicable to domestic sugar. 
We would appreciate clarification of this point.  WT/ACC/UKR/130 
 Page 57 
 
 
 Answer:  
No, the imported refined sugar is not subject to ma ndatory minimum price requirements applicable to 
domestic sugar. Pursuant to appli cable laws, "the minimum price to sugar is the lower limit of price 
applying to sale-purchase Agreements at Ukraine' s domestic market within the A Quota.  The A 
Quota is an internal quota for supplying domestically -produced sugar to the internal market.  Refined 
imported sugar is not produced in Uk raine within this quota and is not s ubject to the effect of the cited 
minimum price definition. 
Question 149 
Regarding Ukraine's reply to Question 107 of WT/ACC/SPEC/UKR/5/Rev.2 to concerns on 
TRIMS in relation to sugar, we again seek details of plans, or steps already taken, to abolish this 
requirement and ask that this information be reflected in the report. 
Answer:  
The domestic regulation of the sugar market contains  no provisions being inconsistent with TRIMs.  
 - Drawback of duty  
Question 150 
Concerning the reply to Question 77 of WT/ACC/UKR/126, we would still consider a duty 
drawback scheme in relation to sugar to be an  option worth considering, even though Ukraine 
will no longer be seeking recourse to a tariff quota  for raw cane sugar.  We would be pleased to 
discuss this further. 
Answer:  
Ukraine looks forward to further discussions on this subject. - Trade in civil aircraft Question 151 Ukraine has stated its commitment to join the Agreement on Trade in Civil Aircraft.  We 
request that, in the appropriate part of the Wo rking Party Report, Ukraine include information 
on its commitment to join the Inform ation Technology Agreement, as well. 
Answer:
 
Ukraine does not object to this request. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 152 This part of the draft report is much improve d, and incorporates much of the information 
developed from the last Working Party meeting.  
We are reviewing the new amending legislation ju st provided to the Secretariat, and we will be 
reviewing areas of Ukraine's basic laws, such as  the Civil Code, that have relevance to TRIPS WT/ACC/UKR/130 
Page 58  
 
 obligations, e.g. the protection of test data.  A fter we have completed this review, we will have 
additional comments. 
The chief deficiency in the intellectual prop erty regime is in the area of enforcement. 
Passage of Bill No. 7032, amending the law on optical disks, should be a positive step. 
We also look forward to more information from Ukraine concerning the protection of 
undisclosed information in patent applications.  
Answer:
 
We inform you, that the Law of Ukraine "On Amendment of Some Laws of Ukraine (on the 
implementation of legislation in line with th e requirements of the WTO TRIPS Agreement)", 
registration No. 7032 was rejected by the Verkhovna  Rada of Ukraine at the plenary session of 
31 May 2005.  Taking into account that there is another Draft Law registered at the Verkhovna Rada 
of Ukraine for today – "On Amendment of Some Legislative Acts of Ukraine (on regulation of transactions related to the productio n, export and import of disks for laser-readable systems or the raw 
materials for the production thereof)" No. 7232 of  22 March 2005, which fully reflects the comments 
by the International Federation for Photographic I ndustry, there is a possibility that it will be 
considered in the nearest future.  
 - Requirements on undisclosed information, including trade secret and test data
 
Question 153 
We propose the following text for the commit ment paragraph relating to the protection of 
undisclosed information.  
The representative of Ukraine confirms, that Ukraine will, in compliance with 
Article 39.3 of the TRIPS Agreement, enact specific legislative provisions, prior 
to accession, that require the registratio n authorities for pharmaceutical and 
agricultural products to provide a period of protection of at least six years for 
test data submitted from the time the first marketing authorization is granted for a specific product utilizing a new ch emical entity in Ukraine against unfair 
commercial use.  During this six-year p eriod no person or entity other than the 
person or entity who submitted such data shall be entitled, without the explicit 
consent of the person or entity who submi tted the data, to rely on such data in 
support of an application for product approval.  During this period, any subsequent applicant for marketing a pproval shall not be granted a market 
authorization, unless he submits his own data to the same extent as required 
from the first applicant for obtaining th e marketing authorization in Ukraine for 
the particular chemical entity.  Furthermore, Ukraine shall guarantee, during this period, the protection of undisclosed information, including commercial secrets, except where necessary to protect the public or unless steps were taken 
to ensure that the data are protected against unfair commercial use.  The 
Working Party takes note of these commitments. 
Answer:
 
Ukraine suggests to put the above mentione d paragraph in the following wording:  WT/ACC/UKR/130 
 Page 59 
 
 
 "The Representative of Ukraine stated that  the requirements regarding the protection 
of undisclosed information, stipulated by the Part 3 of Article 39 of the TRIPS Agreement, are fulfilled by Ukraine in full.  
According to Part 1 of Article 507 of the Ci vil Code of Ukraine, the State authorities 
are obliged to protect from unfair comme rcial use the information, which is a 
commercial secret and the creation of which requires considerable efforts, and which 
is provided to them with a view of obtai ning the legislatively stipulated permit for 
conducting the activity related to pharmaceu tical, agricultural, chemical products 
containing the new chemical formulas.  This  information is also protected by the 
State authorities against disclosure in case th e disclosure is necessary for ensuring the 
protection of the population, or no measur es were taken to protect he information 
from unfair commercial use. 
According to Article 506 of the Civil Code of Ukraine, the exclusive right to allow 
the use of commercial secret and the ex clusive right to prevent the unlawful 
disclosure, gathering or use of commercia l secret belongs to the person, who has 
legally defined the information as constituti ng a commercial secret, if other is not 
stipulated by the Agreement. 
Article 431 of the Civil Code of Ukraine provides that violation of intellectual 
property rights, including the recognition or non-recognition of rights or encroachment of rights entails a liabilit y established by this Code, other Law 
or Agreement. 
Any legal entity or natural person in posses sion of intellectual property rights, shall 
have their rights protected in an administ rative or judicial procedure, by way of 
addressing the relevant authorities of the executive branch or the court. 
Such authorities of the executive branch of  the government are: the State Department 
of Intellectual Property, the Anti-Monopoly Committee of Ukraine, the Ministry of 
Internal Affairs of Ukraine, the State Cu stoms Service of Ukraine, the State Tax 
Administration of Ukraine, the State Committee of Ukraine on Technical Regulation and the Consumption Policy". 
VIII. TRADE AGREEMENTS 
Question 154 We appreciate the additional information pr ovided by Ukraine on its association with 
the Russian Federation, Kazakhstan, and Belarus in the Single Economic Space Agreement, and 
on its activities in this Agreement since signing it in September 2003.   
We note the bracketed commitment language in  paragraph 365, and urge adoption of the 
second text. 
Answer:
 
Paragraph 365 does not contain any commitment language. 
 
__________