RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/59
6 July 1999
(99-2796)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Questions and Replies
The Governmental Commission on Ukraine's Accession to the WTO has provided the replies
reproduced hereunder to the questions submitted by delegations following the last meeting of the
Working Party.
_______________
TABLE OF CONTENTS
Question Page
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE IN GOODS AND
TRADE IN SERVICES
3. Division of authority between central and sub-central
governments1 - 2 2
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(b) Characteristics of national tariff
-  Unified customs tariff document 3 2
-  National treatment 4 3
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards
-  Electronic and electrical products 13 - 14 6
-  Sanitary measures 15 - 18 7
-  Harmonization with international EMC standards 19 - 20 8-  Specifying standards for factory inspections and sub-contract
agreements with agencies21 - 23 9
-  Standards and certification for automobiles 24 - 28 11
4. Policies Affecting Foreign Trade in Agricultural Products 29 - 38 13
-  Domestic support 39 - 51 16
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 52 - 53 19VI TRADE-RELATED SERVICES REGIME 54 - 55 20
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES56 20WT/ACC/UKR/59
Page 2
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
3. Division of authority between central and sub-central governments
Federal/Sub-federal Measures
Question 1.What measures does the Ukrainian Government ha ve in place to advise the regions of federal
legislation?
Reply:
The Ukrainian government regularly publishes its laws and decrees in mass media
publications.  The following publications regularly contain texts of Ukrainian laws:
- "Vidomosti Verkhovnoi Rady Ukrainy" (collection)
- " Holos Ukrainy" (newspaper)
- "Uriadovy Courier" (newspaper)
Texts of the laws are also commercially available in electronic form, through such news
services as, “Liga.”  English language texts of selected legislation are made available, either by thegovernment of Ukraine or by international organizations through their Ukrainian offices.
Question 2.
How does the Government ensure that Ukraine' s regional authorities implement and enforce
governmental legislation in a transparent manner?
Reply:
Article 19 of the Constitution of Ukraine of 1996 states the legal order in which regional
authorities implement and enforce such legislation.  For example, paragraph 2 states that regional
authorities must act only within the authority envisaged by the Constitution.  All ministries and othergovernment agencies issue regulations and instructions according to which their employees are
supposed to act in the exercise of their respective responsibilities.  Such regulations and instructions
are distributed to all regional and local offices of respective ministries and agencies.  Ministers, heads
of agencies and their deputies are vested with supervisory powers over the activities of the regional
and other local offices.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(b) Characteristics of national tariff
- Unified Customs Tariff Document
Question 3.
We were disappointed to note in Ukraine's Unified Customs Tariff Document (tabled in Geneva
on 5 June 1998) the use of minimum value rates and the increased tariff levels on key
agricultural products.  When does Ukraine plan to remove these measures?
Reply:WT/ACC/UKR/59
Page 3
The Draft Customs Code is being considered in various parliamentary (Rada) committees
before being submitted to the Supreme Rada for its second reading.  This draft code contains
provisions, which comply with GATT, Article VII and the Agreement on the Implementation of
GATT Article VII.  The Draft Customs Code only addresses the minimum customs value.  In the
meantime, customs valuations are made according to the Cabinet of Minister Resolution, No. 1598, of
5 October 1998 (copy of this resolution is submitted by separate document WT/ACC/UKR/59/Add.1).
Concerning tariff rates, these rates appear in the Unified Customs Tariff.  Work is proceeding
in the Cabinet of Ministers and the Ministry of Foreign Economic Relations and Trade on completing
the unified customs tariff rates, thereby fulfilling the goal of the stabilization of all tariff rates.
National Treatment
Question 4.Could the Ukrainian delegation provide more in formation on the application of the Decree of
the Cabinet of Ministers, No.569, dated 27 April 1998 with the clarification of the National
Treatment issue?
Reply:
Resolution of the Cabinet of Ministers, No.569, April 27, 1998 establishes different fee rates
for registration (and re-registration) of import and domestic medicines, which violates the national
treatment requirement of Article III of GATT 1994. Consequently, the Government of Ukraine
introduced a draft legislative act to bring Reso lution No.569 in line with the requirements of
GATT 1994.  This Cabinet of Ministers Resolution, No. 241 of 22 February 1999, amends ResolutionNo. 569 by setting identical fees for the registration of imported and domestic medicines.
3. Internal policies affecting foreign trade in goods
(b) Technical regulations and standardsQuestion 5.Please advise where Ukraine's labelling regu lations are enforced; e.g. at point of sale?
Reply:
Labelling requirements are established according to Article 7 of the Law of Ukraine "On
Quality and Safety of Food Products and Food Raw Materials," No.771/97, of 23 December 1997,
(WT/ACC/UKR/51) at the point of entry.  According to this article, “it is prohibited to sell or use
domestic food products or those imported into Ukraine without labelling being made in the state
language of Ukraine.”  The labelling must include such requirements as the: name, nominal quantity,product composition, date of production, consumption period and expiration date, storage conditions,
producer’s name, address and place of production, percent of artificial additives and any precautions,
such as use of the food product by children. Labelling language shall be subject to compulsory
approval by the Ministry of Health Protection of Ukraine.
The full text of Article 7 has been deposited with the WTO Secretariat (WT/ACC/UKR/51).
Question 6.WT/ACC/UKR/59
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Decree No. 244 specifies in great detail the timetable to be enacted for the legislative program
contained in the Decree. The original question 35 of document WT/ACC/UKR/50 intended to
ascertain how this comprehensive legislative programme is progressing in detail, and we would
therefore appreciate receiving more detailed information on this matter than was given in
Ukraine’s reply.
Reply:
In accordance with the Resolution of the Cabinet of Ministers of Ukraine “On Measures for
Gradual Introduction in Ukraine of the European Union Directives, Sanitary, Ecological, Veterinary
and Phytosanitary Rules, and International and European Standards” No.244 of 19 March 1997
(WT/ACC/UKR/44), the Law of Ukraine “On Quality  and Safety of Food Products and Food Raw
Materials” No. 771/97-VR of 23 Decemb er 1997 (WT/ACC/UKR/51) is in force.
To execute the above Resolution, the following dr aft laws were introduced into the Cabinet of
Ministers of Ukraine: a Draft Law of Ukraine "On the Responsibility of the Supplier for Production
and Sale of Low Quality and Dangerous Products," a Draft Law of Ukraine "On the Procedure of theUtilization and Withdrawal of Dangerous Products,"  and a Draft Law of Ukraine "On Safety of the
Industrial Products" (the last one developed by the State Committee on Supervision and Labor
Protection).
Derzhstandart is currently developing a Draft Law of Ukraine "On Standardization and
Certification" and a Draft Law "On Accreditation."  A Draft Law of Ukraine "On Milk and Dairy
Products" was developed by Derzhstandart and the Ministry of Agro-Industrial Complex together
with experts from AFNOR (French Association for Standardization).
The Ministry of Industrial Policy of Ukraine develops a Draft Law of Ukraine "On the Safety
of Electronic Appliances." The first draft Law of Ukraine "On the Safety of Electric Equipment" has
also been prepared.
Question 7.
In its reply to Question No.43 of document WT/ACC/UKR/50, Ukraine states that after the
enactment of a product liability law, Ukraine will gradually move from pre-market certificationto post market surveillance.
(i) When will the product liability law be implemented?
(ii) What products will be removed from th e list of products covered by mandatory
certification and which will still be covered by mandatory certification?
(iii) Will foodstuffs, electronics and ceramic tiles be removed from the list?"
Reply:
(1) A draft Law of Ukraine "On the Responsibility of the Supplier for the Production and Sale of Low
Quality and Dangerous Products" has been submitted to the relevant state agencies for comment.
(2) A list of products, which will be subject to mandatory certification is currently being prepared.
This review will take into account European and in ternational requirements.   In addition thereto, the
list also will take into account the health and safety of consumers, protection of property and
environmental concerns.
(3) Foodstuffs, electronics and ceramic tiles may be removed from the list.  For example, on the basis
of the above-mentioned draft Law and the Law "On Standards and Certification" in respect of certain
types of products, an applicant will be able to choose between various methods of conformityWT/ACC/UKR/59
Page 5
assessment.  These models are based on EU practice, as provided for by such EU Directives as
Directive 73/23 EEC for low voltage equipment, and Directive 89/106 EEC for construction articles.
Question 8.
We note with satisfaction that Ukraine would be willing to find a practical solution, while at the
same time guaranteeing the safety of its consumers, by positively considering accepting
translations of labels, which correspond to all relevant Codex Alimentarius norms. Could
Ukraine please confirm that its answer to Question 44(c) of document ACC/UKR/50 has this
meaning.
Reply:
Ukraine confirms its answer to Question 44(C) that it intends to find a practical solution,
while at the same time guaranteeing the safety of its consumers, by positively considering accepting
of translations of labels that correspond to al l relevant Codex Alimentarius norms. Additional
information on labeling requirements is set out in Article 7 of the Law of Ukraine "On Quality andSafety of Food Products and Food Raw Ma terials" No.771/97-VR of 23 December 1997,
(WT/ACC/UKR/51).
Question 9.
We welcome the very positive step of Ukrain e joining the 1958 UN-ECE Agreement as indicated
in its reply to Question 48 of document ACC/UKR/50.  Two problems remain however, in view
of the reply made by Ukraine to Questions 48 and 49 of document WT/ACC/UKR/50.
Reply:
See answers to Questions 10 and 11.
Question 10.
The frequent plant visits have been confir med in bilateral meetings with the State
Motortransport Research and Design Institute and are reported by EC industry. Will Ukraineagree to reduce the plant visits to the necessary  minimum in line with international practice?
Reply:
The plants are inspected in order to establish whether the enterprises have conditions for
stable production according to the indices stipulated by the current Ukrainian laws and regulations.
Question 11.
To our knowledge "private importers" equalling "imports made by private persons" do not
require type approval certificates whereas dealers have to provide these. Could Ukraine clarify
if this is correct, and in such case when  it plans to abolish this discrimination?WT/ACC/UKR/59
Page 6
Reply:
No discrimination exists between legal entities and individuals importing vehicles into
Ukraine.  According to the Resolution of the Cabinet of Ministers of Ukraine of September 7, 1998,
No.1388 “On Rules of State Registration and Reco rding of Automobiles, Buses and Vehicles,
Constructed on the Basis of the Chassis of Automobiles, Motorcycles of all Kinds, Marks and
Models, Trunks, Semi-Trunks and Side Cars,” imported vehicles are registered if the conformity
certificate or a certificate of recognition of the foreign certificate is available.
Question 12.
Transparency in standards and certifications is crucial in the interest of foreign investors and
traders. Transparency in this field contributes to  a certain predictability in Ukraine’s technical
regulations and greatly enhances trade.
In this regard, we request Ukraine to provide information in English regarding those laws,
rules, regulations and procedures on the operati on of certifications for these products. Please
provide a copy in English of the following relevant laws and regulations:(As per document
WT/ACC/UKR/23):
- Decree "On Standardization and Certification;"
- Decree "On Ensuring the Uniformity of Measurement;”- Resolution of the Cabinet of Ministers of Ukraine "On the State Supervision of
Adherence to and the Enforcement of Standards and Regulations;"
- Decision of the Cabinet of Ministers of Ukraine "On the Approval of the Procedures of
Customs Clearance of Imported Goods (Products) Subject to Compulsory Certification
in Ukraine."(As per document WT/ACC/UKR/46)
- Law of Ukraine "On Ensuring the Sanitary and Epidemic Safety of the Population;"
- "The Procedure of the State Sanitary and Hygienic Expertise of the
Development, Production and use of Pr oducts, which are Potentially Harmful to
Human Health", Approved with the Order of  the Ministry of Health of Ukraine
of October 20, 1995, No.190.
The English translations submitted to the WTO Secretariat should be made available to the
public from the viewpoint of accelerating Ukraine’s accession process.
Reply:
The above-mentioned Decree “On Ensuring the Uniformity of Measurement,” was repealed
by the Law “On Metrology and Metrological Activity,” No. 133-98, of 11 February 1998.  The
English translation of this law and the remaining above-listed laws are being sent in a separate
document.(WT/ACC/UKR/59/Add.1).
Electronic and Electrical Products
Provision of information regarding standards and certification system :Question 13.
We would like to obtain copies of implementation regulations, procedures and rules of
implementation regarding certification systems in Ukraine, including factory inspections.
Please supply copies of the documents.
Reply:WT/ACC/UKR/59
Page 7
English translations of documents addressing certification are being sent in a separate
document.
Question 14.
We also request that Ukraine will make an English brochure for importers and manufacturers
abroad which explains the standards and certification system in Ukraine.
Reply:
No brochure exists at this time.
Sanitary measures
Question 15.
We do not have detailed information on sa nitary measures for electronic and electrical
products. We request that detailed information (in English) on sanitary standards and
certification procedures for electronic and electrical products be made clear and open.
Reply:
According to the legislation on sanitary measures, all new products that, by virtue of some of
their properties may have a negative impact on human health, are subject to sanitary and hygienic
oversight.  Ukraine views electronic and electrical products have such an impact.
Conformity assessment of electronic and electrical products is carried out in accordance with
methods provided for by the recommendations of international organizations on standardization, such
as ISO and IEC.  As there are no regulations in Ukraine setting out the liability of the suppliers for
production and sale of low quality and dangerous products, introducing such method of conformity
assessment to determine responsibility is proving diff icult.  Such legislative acts are being considered
and once the market is developed and liability issues are settled, conformity assessments as provided
for by the ISO/IEC recommendations will be implemented.
Certification procedures must take into account the current state of Ukrainian economic and
institutional structures.  Adjusting to changes in th ese structures takes much time.  However, efforts
are being made to bring the procedures in line with  international expectations and practices.  Ukraine
is aware of steps that need to be taken, and is working towards the implementation of such steps.Some progress has been made in this area.
Question 16.
No other countries than Russia, Ukraine and Be larus have sanitary certification requirements
for electronic and electrical products as a legal obligation. Therefore, we request that the
requirements for sanitary certification will be eliminated for electronic and electrical products,
or be replaced by a manufacturer’s self-declaration system.WT/ACC/UKR/59
Page 8
Reply:
See answer to Question No.15 to address sanitary certification.
Once the industry is viable, self-declaration (self-regulatory) system will come into effect.
For example, in the electronic sector, significant strides have been made towards the development of a
self-declaration system.
Question 17.
We have heard that the sanitary certification for electronic and electrical products, such as
television and audio products, partly covers requirements for safety and EMC (Electromagnetic
Compatibility) other than restriction of poisonous substances.
Since such products need to have a certification for safety and for EMC separately from a
different authority, there is a possibility that these two kinds of certifications are partly
duplicated in the field of safety and EMC for such products.
We request Ukraine to provide detailed information on sanitary standards as stated in item (1)
above. If that is the case, we request to st reamline such certification systems to avoid the
duplication as early as possible.
Reply:
Ukraine is attempting to streamline its certification system to avoid duplication.  However,
because the authorities involved in sanitary certi fication are still relying on Soviet law, changes
require coordination of several different agencies and the additional implementation of new Ukrainianlegislation, which is being considered.
A draft law has “On State Sanitary Hygienic Expertise” is being reviewed in the Cabinet of
Ministers prior to its presentation to the Supreme Rada.
Question 18.
It is said that the sanitary certification for X-ray and laser emissions is required in Ukraine,
although the requirements for such emissions are usually included in safety standards in
international practices and covered by a safety certification.
We request that the information on the techni cal standards and certification procedures for
these aspects be made clear.
Reply:
Such certification is conducted pursuant to standards and procedures established in the
legislation of the former Soviet Uni on.  New procedures are being developed.
Harmonization with international EMC standards:
Question 19.
It is reported that the requirements in Ukraine’s mandatory EMC standards for television and
radio products are different from those in the current internatio nal standards (CISPR).
For instance, although the latest CISPR 13 (International Electromagnetic Interference
Standard for Radio and TV Receivers) is a 1996 edition, Ukraine’s standard, GOST 22505-83 isWT/ACC/UKR/59
Page 9
still based on the 1975 edition, which may cause a problem that equipment complying with the
current CISPR 13: 1996 does not comply with the GOST 22505-83 (= CISPR: 1975) due to
different measurement instruments (different specif ications in the Line Impedance Stabilization
Network).
Another problem is that Ukraine’s immunity st andard for radio and TV receivers, Norm21-86
is Ukraine’s own standard and not based on any CISPR standards.
We therefore request the following:Notify the national deviations from international standards publicly with an inquiry point being
fully operated.
Harmonize Ukraine’s national standards with international ones as soon as possible.
Reply:
Ukraine is working on the harmonization of its standards and procedures in accordance with
international and European standards.  Currently,  radio receiving and radio-transmitting equipment in
Ukraine requires ranges different from those of other countries.  Due to technical and economic
constraints, Ukraine cannot switch to international and European standards as soon as it would like.
Consequently, electromagnetic compatibility standards remain somewhat different from internationaland European ones.  However, Ukraine is taking steps towards harmonization as contained in the
Resolution of the Cabinet of Ministers of Ukraine, No.244, of 19 March 1997.
Question 20.
Participation in the IECEE-CB scheme by Ukraine is limited only to certain household
electrical appliances which are in the scope of  the IEC60335 category, such  as refrigerators and
washing machines.  Since the IECEE-CB is a very useful scheme in which many countries in the
world participate, we request Ukraine to expand its participation in the category of household
appliances (IEC60335) and newly participate in the categories of household electronic products
(IEC60065) and that of information technology equipment (IEC60950) as soon as possible.
Reply:
Ukraine plans to expand a nomenclature of standards and goods in the CB schemes in the
future.  Because of difficulties in the restructuring of industries and unstable market conditions, once
the directions within the Ukrainian economy are better defined, the participation in the IECEE-CBwill become possible.  Ukraine is moving in this direction.
Specifying standards for factory inspections and sub-contract agreements with agencies
Question 21.It is difficult for us to obtain informatio n on systems and implementation rules regarding
factory inspections. We request that the info rmation on the standards and procedures for
factory inspections be made clear and transparent.WT/ACC/UKR/59
Page 10
Reply:
Requirements to the factory inspection ar e set out in paragraph 6.3. of DSTU 3413-96
"Certification System UkrCEPRO: Procedure for Certification of Products", DSTU 3414-96
"Certification System UkrCEPRO : Attestation of Pr oduction: Procedure for Realization",
DSTU 3419–96 "Certification System UkrCEPRO . Certification of  Quality Systems.
Procedure for Conducting" (attached).
In addition, a draft of DSTU "Certification System UkrCEPRO. Procedure for the Factory
Inspection" is being developed.
Question 22.
Ukraine does not accept the results of factory inspections performed by agencies. In order to
reduce the cost and time it takes for factory in spections, we request that Ukraine accepts the
results of inspections performed by agencies under sub-contract agreements, or the results ofinspections performed by other countries’ a ccredited inspection bodies under the quality
management system standards of the ISO9000s or CENELEC.
Reply:
Ukraine agrees to recognize the results of fa ctory inspection on the basis of equality and
reciprocity. Such activity is to be based on the intergovernmental bilateral agreements on the mutualrecognition of the results of conformity assessments.
Question 23.
The Ministry of Health reportedly requires fa ctory inspections for a sanitary certification
system.  This practice places a great burden on manufacturers because the manufacturers will
have to have both factory inspections for safety and an EMC certification performed by
Derzhstandart, and those for sanitary certification performed by the Ministry of Health.
We request that these inspections performed by both institutions will be consolidated and that
the result of the inspection performed by either of  the institutions will be accepted by the other
institution without duplicate inspections.
In this connection, Russia, which has similar sa nitary certification, does not require factory
inspections for their sanitary certification system.
We would like to request that the information on the standards and procedures for factory
inspections to be performed by the Ministry  of Health be made clear and transparent.
Reply:
Factory inspections for safety certification of foreign products are conducted in accordance
with the order of the State Committee on Standard ization, Metrology, and Certification “On Adopting
the Certification Procedure for Foreign Full-Scale Production Items, No. 633, of 18 August 1998
(English-language copy is being separately submitted).  Further, Derzhstandart is currently developing
a production examination procedure for its certification system.  Inspections on a contractual basis are
carried out based on the intergovernmental bilateral agreements based on the mutual recognition ofthe results of conformity assessments in the particular area .WT/ACC/UKR/59
Page 11
The Law of Ukraine "On Quality and Safety of Food Products and Food Raw Materials"
divides the functions between Derzhstandart and the Ministry of Health in the field of state regulation
of proper quality and safety of food products and food raw materials.  However, the sanitary
inspection requirements of the Ministry of Health are still conducted pursuant to laws and regulations
of the former Soviet Union; thus, safety inspections are presently not coordinated.
Standards and Certification for Automobiles
Question 24.In Ukraine, type approval expires after a de signated period of time (usually one year).
Therefore, manufacturers need to apply for an approval extension for the same type manytimes, usually every year.
We would thus like to request that Ukraine eliminates the designation of an expiration period
regarding type approval, so that once a type appro val has been given, there is no need to obtain
an extension thereof during the period which th e type of vehicles are sold, in line with
international practices.
Reply:
For the first time in Ukraine a conformity certificate (permit) may be obtained for a period
exceeding one year, i.e. from one to three years.  A quality system certificate, for instance, is issued in
the EU for a three year period.  Provided such certificate is available, a relevant Ukrainian certificate
may be issued for the same period of time for products or cars, in particular.
A certificate (permit) is not issued for a model but for a type or design.  For instance,
modernization and review of car constructions are carried out annually in the EU.  According to the
UN-ECE/WP29 rules, it requires new tests to be carried out and new permits to be obtained, while the
design may remain unchanged.
When the conformity certificate becomes invalid, the procedure of its confirmation is possible
without obligatory testing at all stages, provided that the construction is not changed. For the next
term, the plant visits may be replaced by the supplied products control on their conformity to thecertified ones.  This is the same procedure for certified products control as the one used in Europe.
Question 25.
Ukraine’s national standards in the field of automobiles are different from the UN-ECE/ WP29
standard, which is regarded as the international standard in this area. We would thus like to
request that Ukraine participate in the UN-ECE/  WP29 as soon as possible, thereby enhancing
the harmonisation of its national standard with international standards.
What schedule do you envisage for participation in the UN-ECE/ WP29?
Reply:
Ukraine’s position with regard to the adoption of UN-ECE standards is the following:
- Ukraine has not adopted new national standards for car safety for which modern international
standards exist, but recognizes these standards in its territory within the framework of international
agreements, in particular, the Geneva Agreement of 1958.WT/ACC/UKR/59
Page 12
- Introduction of a standard, UN-UCE/WP29 in particular, requires considerable financing, for
both improvement of production and creation of a modern testing base and appropriate infrastructure
for control over the implementation of the adopted standard, and therefore, the introduction of
international standards will be accelerated provided that funds are available.
Question 26
Simplification of certification procedures between Ukraine and other countries which use the
same standards.  Ukraine and Russia, for exam ple, are now adopting the same standard in
areas of exhaust gas restrictions. However, ev en if a company has obtained certification in
compliance with the exhaust gas restriction in Ru ssia, the company has to repeat the testing and
certification procedure to obtain an Ukrainian certification.
We would therefore like to request the procedures to be simplified by proceeding with an
agreement on mutual co-operation among countries, which use the same standards.
Reply:
In accordance with the Agreement on Recognition of Results of Certification of Domestic
Products between Ukraine and the Russian Federation the test results on cars obtained by the
accredited Russian laboratories are accepted in Ukraine and, if they are valid and show positive
results, further tests are not required. Thus, in fact, "application of all Ukrainian procedures" does nottake place.
Question 27.
Re:  Ukraine’s proposal on mutual recognition regarding the results of works on certification.
Clarifications:The draft agreement proposed by Ukraine is only of a general nature and further clarifications
are necessary:
- on the purpose or objective of the agreement  (The draft proposal is aimed at a mutual
recognition of mandatory standards or at a bilateral co-operation between the
standardization agencies.)
- as to how the coverage of items or areas for co-operation is specified.
- by providing us with copies of the bilateral agreements already concluded by other
countries, especially those agreements between the United States, France, Republic ofKorea and other CIS member countries, with Ukraine.
Reply:
A draft intergovernmental agreement, proposed by Ukraine on the basis of Article 6 TBT,
deals with cooperation in the field of mutual recognition of results of conformity approval in the area
regulated by law. This is a framework Agreement that contains intentions of governments to
cooperate in the mentioned area and serves as a basis for cooperation between the product
certification bodies and testing laboratories with regard to certain product groups as agreed upon
between the parties.
Under the agreements concluded with the United States institutes ANSI NIST an exchange of
information and standards takes place, and several seminars were held.  The talks are underway on the
possibility of cooperation regarding the mutual recognition of conformity approval in certain branchesWT/ACC/UKR/59
Page 13
of industry, in particular, telecommunications, medical equipment, equipment for gas and oil
complex.
Under the intergovernmental agreement with France cooperation on harmonization of
standards and testing methods in the field of pesticides, gas industry and electronic sector ismaintained.
As far as cooperation with the Republic of Korea is concerned, the parties determine testing
laboratories for accreditation within the framework of the signed agreement.
Ukraine concluded bilateral agreements with all CIS countries except Tadjikistan.
Question 28.
We will carefully study how the two countries shou ld develop bilateral cooperation on standards
and certifications; however, we do not consider th is matter an indispensable part of the bilateral
negotiations for Ukraine’s accession to the WTO.
We, therefore, do not think it appropriate to take up this matter during the present
negotiations, though may be in a different forum, if necessary.
Reply:
Ukraine takes note of the comment.
4. Policies affecting foreign trade in agricultural products
Question 29.
Can Ukraine confirm that no import quotas have been applied to agricultural produce up till
now?
Reply:
Yes, Ukraine confirms that import quotas are not being applied to agricultural products at this
time.
Question 30.
The State-owned Corporation "Bread of Ukraine"  is said to be doing business in the same
manner as commercial entities and competing with them in grain and grain related products.
Could Ukraine explain in more detail how this corporation functions?
Reply:
The State Joint Stock Company “Bread of Ukraine (Khlib Ukrainy) operates in
accordance with the Cabinet of Ministers Resolution, No. 1375, November 12, "On Adopting
Articles of Association of the State Joint-Stock Company ‘Khlib Ukrainy,’" (attached).Pursuant to the Cabinet of Ministers Re solution, No. 1000 of 22 August 1996 the Bread of
Ukraine was the chief buyer of food and grain for state requirements.
Bread of Ukraine is a state-held joint-st ock company (corporation), currently being
privatized to demonopolize the grain trade in Ukraine.  The company conducts the businessWT/ACC/UKR/59
Page 14
of former state enterprises of grain products a nd owns the majority of grain silos in Ukraine.
The Government of Ukraine appoints the corpor ation’s Board of Directors who according to
the bylaws, act independently.  The privatization plans consist of the sale  of individual of the
corporation to private buyers with some pr ovisions for share distribution to Bread of
Ukraine’s employees.  The remaining shares will be sold for cash commercially at auctions.
Copies of Cabinet of Ministers’ re solutions, No. 1000, 22 August 1996, and No. 1375,
of 12 November 1996 are sub mitted by separate document.
Question 31.
This member's tariff proposals on the agri-food  group of goods were not considered in the last
version of the Ukrainian offer.  The member would like to know whether Ukraine is going to
present a modified offer that takes into consideration these proposals
Reply:
The request by the member regarding tariffs will be included in the final version of the
Unified Customs Tariff after completion of relevant bilateral negotiations.
Question 32.
Certification procedures imposed on agri-food products are bureaucratic, lengthy, complicated
and expensive (cost is usually covered by the exporter).  This procedure is perceived by the
exporters as a technical barrier to trade.  Could the Ukrainian delegation provide information
as to whether certification procedures for the agr i-food sector are going to be simplified in the
future?
Reply:
Ukraine is working to simplify its certification procedures.  For example, such measures are
evident in the Law of Ukraine "On the Quality and Safety of Food Products and Food Raw Materials,"
No. 771/97, of 23 December 1997 (WT/ACC/UKR/51) and in the Resolution of the Cabinet of
Ministers of Ukraine, No.244 of 19 March 1997, "On Measures Concerning the Gradual Introduction
of European Union Directives and Sanitary, Ecological, Veterinary, and Phyto-Sanitary Norms, andInternational and European Standards in Ukraine.”  These laws aim to conform the certification
procedures with international norms.
Question 33.
Lack of stability of regulations related to trade policy creates the environment that can be
considered as a trade barrier in agri-food.  Sin ce the introduction in 1997 of the Law "On State
Regulation of Agricultural Imports" (Official Journal of the Supreme Rada, 1997, No. 44) was
amended at least seven times.  So many amendm ents introduced in a rel atively short period of
time have a disturbing effect on internationa l trade.  Are there any plans to eliminate this
practice?WT/ACC/UKR/59
Page 15
Reply:
The Law of Ukraine “On State Regulation of Imports of Agricultural Products” has been
amended several times (though four, not seven amendments were enacted).  The need for such
amendments is due to extraordinary agricultural emergencies.  Such frequent amendments create trade
difficulties.  However, efforts are being made to st abilize tariffs.  For example, the Resolution of the
Cabinet of Ministers of Ukraine, No.1213, of 3 August 1998, which introduces changes in the importduty rates for goods (except agricultural products for which seasonal duties are established) shall be
adopted by the Cabinet of Ministers of Ukraine no more than once every six months, and from
1 January 2000 onwards - only once a year.
Question 34.
Can Ukraine explain in WTO terms the use of certain measures, e.g. import quotas, in the Law
on State Regulation of Agricultural Imports?
Reply:
The Law of Ukraine “On State Regulation of the Import of Agricultural Products” provides
for the establishment of annual quotas for cattle and meat (Groups 1 and 2 of the Commodity
Nomenclature).  In effect this law has not been applied, because there was no need to do so.  Although
the law provides for an import restriction of up to 10 per cent, actual imports into Ukraine amounted
to only 6 per cent.  The imports did not create any threat to Ukrainian domestic producers.
In view of the above data and taking into consideration WTO requirements concerning
quotas, the Ministry of Agro-Industrial Complex recommended to the Cabinet of Ministers
cancellation of the quotas for 1999.
Question 35.
The preamble to a resolution (late October 1997) adopted by the Cabinet of Ministers to re-
equip the agriculture sector says that "the fund is being created to buy/lease and supply basic
domestic produced equipment for farmers on th e basis of payments in instalments".  The
resolution instructed the Ministry of Finance to set aside funds for this in the 1998 budget.  Hasthis been done?
Reply:
Yes, funds have been set aside.  By Resolution of the Cabinet of Ministers, No.1031, of
18 September 1997 “On Establishing State Leasing Fund for the Technical Re-equipping of the
Agricultural Economy,” the Ministry of Finance was au thorized to include in the draft state budget for
1998 an adequate amount for the partial establishment of the state leasing fund.  The funding was
supposed to come from assets granted to the former Ministry of Agriculture and Foodstuffs and the
former State Food Industry Committee remaining after the return of their budgetary loans and also
from the proceeds of state procurement of agricultural products (1994-97). The initial amount
required for the program was 290 million hryvnias.  In the final state budget of 1998, the authorizationwas given for 70 million hryvnias.  Eventually, 48 million hryvnias were transferred to the state
leasing fund.
The Cabinet of Ministers Resolution “On the Procedure of Using the Funds of the
Governmental Leasing Fund to Purchase Domestic Agricultural Machinery,” No. 25, of15 January 1998 (English translation in document WT/ACC/UKR/59/Add.1) se ts out the procedure
for the awards of such loans and for their repaymen t.  The loans are awarded on a competitive basisWT/ACC/UKR/59
Page 16
pursuant to paragraph 7 of the resolution.  The terms of repayment are set out in paragraph 9 of the
resolution as follows:
“The aforesaid payment shall include an amount by which a portion of the price of
agricultural machinery that is depreciated shall be compensated; and an amount that is paid for theprovided funds for purchase of agricultural machinery under the leasing agreement shall be calculated
in the amount of up to fifty percent of the discount rate of the National Bank of Ukraine as of the date
of entering into the agreement.”
As a result, the discounted rates are lower (e.g. 10 per cent over a five-year period), and such
arrangements do not operate uniformly throughout Ukraine.  However, the funding, as stated above is
limited.
Question 36.
Has this piece of legislation been implemented?
Reply:
Yes, see the answer to Question 35, which refers to the relevant legislation, which has been
implemented.
Question 37.
How will the loans work?
Reply:
See the answer to Question 35, which explains the relevant procedures pursuant to the
Cabinet of Ministers Resolution, No. 25 (1998)
Question 38.
We understand that the farmers and administrators in several regions will receive loans to
buy/lease only Ukrainian equipment at 50 per cen t of the discounted Bank of Ukraine's interest
rate for up to five years.  Is this correct?
Reply:
See the answer to Question 35.
Domestic Support
Question 39.Ukraine's "green box" entries continue to incl ude input subsidies for pedigree stock breeding
and seed purchasing.  Can Ukraine explain how the acquisition of elite seeds meets the
requirements of items 1 and 11 of Annex 2 of the Agreement on Agriculture?WT/ACC/UKR/59
Page 17
Question 40.
What kind of "structural disadvantage" is addressed by the support of selection in stock
breeding?
Replies:
These questions may not be relevant, because Ukraine’s domestic support tables (DS:1-6)
have been revised, and are currently being reviewed by international experts in agriculture.  As soon
as the tables are received from the international experts, which is expected to happen in a matter of
weeks, they will be immediately submitted to the WTO Secretariat.
Question 41.
How does the money set aside for land reform and management get disbursed?
Reply:
The Ministry of Finance sets aside money for the State Land Committee and regional offices
that manage land resources for further distribution.  These offices in turn, distribute such money to
land developers to promote land reform, and cover such expenses associated with this reform, such as
land registration and land-use protection.
Question 42.
What land reform and management is envisaged?
Reply:
Ukraine hopes to: introduce a state land cadastre and comprehensive land registration;
restructure the reorganization of land; restructure collective farm organizations into more productive
entities; protect valuable land resources; and restore degraded lands.
Question 43.
Is there any foreign assistance earmarked for such projects?
Reply:
Currently no foreign assistance is earmarked for such projects.  However technical assistance
has been requested, particularly for pilot projects covering land mortgage and agricultural credit
systems, improvement of the state land cadaster system and establishment of the land registration
system.
Question 44.
Who qualifies for assistance through the land reform and management programme?
Reply:
Anyone who submits a comprehensive business plan, which takes into account the goals of
the program.
Question 45.WT/ACC/UKR/59
Page 18
What criteria is used to determine eligibility?
Reply:
Evidence of prior satisfactory performance in asset utilization and goal achievement.  Also,
the actual condition of the land and the degree of need are taken into account.
Question 46.
We note that Ukraine has moved "support of selection in stock breeding – upgrading of
selection and genetic potential …" from (a) general services to (h) structural adjustmentassistance.  How does this support meet the requi rements of the structural adjustment criteria?
Reply:
See answer provided for questions 39-40, whic h addresses the current preparation of new
tables.
Question 47.
Please list the authorities responsible for administration of support programmes?
Reply:
The Ministry of Finance and the Ministry of Agro-Industrial Complex are responsible for the
implementation of support programs.
Question 48.
Can Ukraine explain what the terms "eligible production", "applied administrative prices",
"external reference prices" and so on mean in the Ukrainian context.
Reply:
Ukraine requests reference to the sources of thes e terms. Were these terms incorporated in the
previous domestic support tables?  If so, then they are irrelevant.
Question 49.
We understand that Ukraine continues to consider "partial reimbursement of agricultural
producers" expenses on payment of interest und er banking loans" as a green box measure.  Can
you explain why this should not be listed as  a non-product specific support under the green
box?
Reply:
Please see answer to questions 39-40 regarding new domestic support tables.WT/ACC/UKR/59
Page 19
Question 50.
Could Ukraine amend its revised document so that the data sources cited throughout relate to
relevant reports of actual expenditures?
Reply:
Yes, Ukraine is amending its revised documents.  See answers to Questions 39-40.
Question 51.
Ukraine's revised agriculture tables now include  the statement that "export subsidies were not
applied in the reporting period."  Does Ukrain e accept that export subsidies will need to be
bound at zero on accession?
Reply:
Ukraine confirms that export subsidies are set at zero.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
Question 52.When does Ukraine intend to join the Rome Convention?
Reply:
The ratification instrument for the accession of Ukraine to the Rome Convention was
submitted to the Supreme Rada in January, 1999.  Joining the Rome Convention is one of Ukraine’s
top priorities, expressly mentioned in the Cabinet of Ministers Action Program on Measures to Ensure
the Fulfillment of the Strategy of Ukraine’s integration into the European Union, of
17 December 1998, issued by the Committee on Science and Education of the Supreme Rada.
Question 53.
Who is an entity of the copyright according to  Ukrainian copyright: the rightholder of the
owner of the copyright?
Reply:
Article 1 of the Law of Ukraine “On Copyright and Related Rights,” No.3792-XII, of
23 December 1993 states:
“This law protects the moral (non-economic) and economic rights of authors and their legal
heirs, which are connected with the creation and use of works of science, literature, and art
(copyright), and the rights of performers, produc ers of phonograms, and broadcasting organizations
(related rights).
According to Article 4 of the above law a “copyright or related right holder” is: “the author or
performer, in cases where economic rights are held by the author or performer, or a natural or juridical
person to whom economic rights are transferred.”
In other words, copyrights may be held by authors, their legal heirs, and natural or juridical
persons to whom the right of copyright ownership is transferred.  The ensuring copyright ownershipWT/ACC/UKR/59
Page 20
situation is the same as in other countries and complies with internationally recognized expectations
concerning copyright ownership.
VI. TRADE-RELATED SERVICES REGIME
Question 54.
The right to provide a telecommunication service is given by a license.  As far as we understand,
the license procedure does not include a granted frequency band.  The request for availability of
free frequency bands is a different step under th e Ukrainian law.  This procedure seems to be
very complicated and as far as we notice, ther e is a serious lack of transparency.  Do the
Ukrainian authorities reflect this issue in order to facilitate the access of the telecommunication
network?
Reply:
Ukraine recognizes the need to facilitate the access of the telecommunications network
through making the decision-making process more transparent.  Consequently, Ukraine is developing
procedures to facilitate and broaden this network
Question 55.
The technical equipment connected to the Ukrain ian network must be certified in compliance
with the law of Ukraine.  Does the certification process include tests regarding the
electromagnetic compatibility of the equipment under examination?  If so, what are the rules
for technical obstacles that could arise during the normal use of the equipment, for example
because of interferences?  Is the responsibility for following measures to resolve the problem
shared between the public and the private service provider?
Reply:
When performing certification examination of the communication equipment intended for the
utilization in the general communication network of Ukraine or for the working on the air, this
equipment must be examined to comply with re quirements of the current normative documents of
Ukraine regarding electromagnetic compatibility.
If it is discovered during examination of telecommunications equipment that some means of
communication do not meet requirements of the normative acts, these means may not receive
permission for their utilization in Ukraine.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
Question 56.Could Ukraine provide a copy of the agreement on industrial cooperation signed with Russia in
April 1998?
Reply:
Translation of the agreement is being submitted in a separate document (WT/ACC/UKR/..)
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