RUSSIA - TARIFF TREATMENT OF CERTAIN AGRICULTURAL AND MANUFACTURING PRODUCTS REQUEST FOR CONSULTATIONS BY THE EUROPEAN UNION
Document: REQUEST FOR CONSULTATIONS BY
Date: 4 November 2014
Document codes: WT/DS485/1; G/L/1080; G/VAL/D/13
Complainant: EU
Respondent: Russia
Third parties: Australia, Brazil, Canada, Chile, China, Colombia, India, Japan, South Korea, Moldova, Norway, Singapore, Ukraine, U.S.
Dispute stage: Panel
Agreements cited: Art. II:1(b), II:1(a)  GATT 1994

RUSSIA - TARIFF TREATMENT OF CERTAIN AGRICULTURAL
AND MANUFACTURING PRODUCTS
REQUEST FOR CONSULTATIONS BY THE EUROPEAN UNION
The following communication, dated 31 October 2014, from the delegation of the European Union
to the Chairperson of the Dispute Settlement Body, is circulated in accordance with Article 4.4 of
the DSU.

My authorities have instructed me to request consultations with the Government of the Russian
Federation ("Russia"), pursuant to Articles 1 an d 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes ("DSU"), Ar ticle XXII of the General Agreement on Tariffs
and Trade 1994 ("GATT 1994"), and Article 19 of th e Agreement on Implementation of Article VII
of the GATT 1994 regarding the tariff treatment Russia accords to certain goods in both
agricultural and manufacturing sectors. These measures adversely affect exports of these goods
from the European Union to Russia.

Russia subjects a number of goods to import duties inconsistent with its Schedule of Concessions
and Commitments annexed to the GATT 1994 ("Schedu le"). In particular, Russia applies duties in
excess of bound rates, in several different ways.

Firstly, for certain goods, including paper and paperboard, the applied ad valorem duty rates – as
provided for in the legal instruments referred to below – exceed the ad valorem bound rates. By
way of example, for five tariff lines (4810 22 900 0, 4810 29 300 0, 4810 92 300 0,
4810 13 800 9 and 4810 19 900 0) the applied duty of 15% or 10% clearly exceeds the bound
rate which is set at 5%.

Secondly, for certain other goods, including palm oil and its fractions, refrigerators and combined
refrigerator - freezers, those instruments provide for a type/structure of duty that varies from the
type/structure of duty recorded in the Schedule. The structure and design of the specific variations
at issue result in duties being levied in excess of those provided for in the Schedule for these
goods in cases where the customs value is below a certain level. This concerns for example the
following tariff lines: 1511 90 190 2, 1511 90 990 2 (palm oil) and 8418108001, 8418102001,
8418211000 (refrigerators and combined refrigerator – freezers).

In addition, it appears that, in relation to certain goods originating in the European Union, Russia's
authorities do not base their valuation for customs purposes on the actual value of imported
merchandise on which duty is assessed.
Russia imposes these measures through, inter alia, the following legal instruments:

- Common Customs Tariff of the Customs Union of the Republic of Belarus, Kazakhstan
and Russian Federation, approved by Decision No. 54 of the Board of the Eurasian
Economic Commission of 16 July 2012 "On the Common Customs Tariff Regulation of
the Customs Union of the Republic of Belarus, Republic of Kazakhstan and the Russian
Federation" (entered into force on 23.08.2012), as amended by subsequent acts,
including by:
WT/DS485/1 • G/L/1080 • G/VAL/D/13

‐ Decision No. 9 of the Board of the Eurasian Economic Commission of 29 January
2014 "On the determination of the import customs duty rates in the Common
Customs Tariff of the Customs Union with regard to certain types of paper and
paperboard";
‐ Decision No. 77 of the Board of the Eurasian Economic Commission of 26 May
2014 amending the Single Commodity Nomenclature of Foreign Economic Activities
of the Customs Union and the Single Customs Tariff of the Customs Union in
respect of certain goods in accordance with the WTO accession commitments of
the Russian Federation and approving the dr aft Decision of the Council of Eurasian
Economic Commission;
‐ Decision No. 52 of the Council of the Eurasian Economic Commission of 16 July
2014 "On the determination of the import customs duty rates in the Common
Customs Tariff of the Customs Union in respect of certain goods in accordance with
the obligations of the Russian Federation in the WTO".
For each of the measures referred to above, this request also covers any amendments,
replacements, extensions, implementing measures or other related measures adopted by the
bodies of the Eurasian Economic Commission and/or by the legislative or executive authorities of
Russia.

These measures appear to be inconsistent with Russia's obligations under the covered agreements
and, in particular:

 - Article II:1 (a) and (b) of the GATT 1994;
 - Article VII of the GATT 1994;
- Agreement on Implementation of Article VII of the GATT 1994, Articles 1 through 7
and Annex I.

These measures appear to nullify or impair the benefits accruing to the European Union directly or
indirectly under the covered agreements.

The European Union reserves the right to address additional measures and claims under other
provisions of the covered agreements regardin g the above matters during the course of the
consultations.

The European Union looks forward to receiving Russia's reply to this request and expresses its
readiness to consider a mutually convenient date and place for the consultations.