RUSSIAN FEDERATION – RECYCLING FEE ON MOTOR VEHICLES REQUEST FOR CONSULTATIONS BY JAPAN
Document: REQUEST FOR CONSULTATIONS BY
Date: 26 July 2013
Document codes: WT/DS463/1; G/L/1034; G/TRIMS/D/38; G/TBT/D/45
Complainant: Japan
Respondent: Russia
Dispute stage: Consultation
Agreements cited: Art. I:1, III:2, III:4  GATT 1994Art. 2.1, 2.2  Trade-Related Investment Measures (TRIMs)Art. 2.1, 2.2  Technical Barriers to Trade (TBT)

RUSSIAN FEDERATION – RECYCLING FEE ON MOTOR VEHICLES
REQUEST FOR CONSULTATIONS BY JAPAN
 The following communication, dated 24 July 2013, from the delegation of Japan to the
delegation of the Russian Federation and 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 and Article 4 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes ("DSU"), Article XXII:1 of the General
Agreement on Tariffs and Trade 1994 ("GATT 1994"), Article 8 of the Agreement on Trade-Related
Investment Measures ("TRIMs Agreement") and Article 14 of the Agreement on Technical Barriers
to Trade ("TBT Agreement") with respect to the Russia's measures relating to a charge, the so
called "recycling fee", imposed on motor vehicles.
Through the measures at issue, Russia impose s a recycling fee on each vehicle imported
into Russia or produced/manufactured on the te rritory of Russia. Russia exempts from the
recycling fee the vehicles manufactured or produced by companies that have committed to ensure
subsequent safe handling of wastes. However, th is exemption is only available to vehicles
manufactured by companies which are legal entities registered in Russia and which have
undertaken to produce their vehicles in Russia according to one of the modes involving certain
specific manufacturing operations in the territory of Russia, Belarus or Kazakhstan. Therefore, the
measures at issue, through these conditions, either taken together or separately, discriminate
between imported vehicles and the like domestic products. In addition, they favour the purchase of
parts/components produced in Russia, Belarus or Kazakhstan over parts/components produced
and imported from other WTO Members, including Japan.
Furthermore, the measures at issue have inve stment objectives and investment features
since they encourage the development of local manufacturing by conditioning the benefit of the
exemption from the recycling fee on local produc tion requirements and the nationality of the
producer.
Through the measures at issue, Russia also exempts from the recycling fee the vehicles
imported from Belarus and Kazakhstan under certain conditions. This exemption is only granted to
vehicles imported from Belarus and Kazakhstan and is not accorded immediately and
unconditionally to the vehicles imported from other countries, including Japan.
Moreover, the recycling fee is imposed on the vehicles at rates that differ sharply
depending on whether the vehicles are "new" or "produced more than 3 years ago", thereby
treating imported vehicles less favourably than domestically produced vehicles.
Russia imposes these measures inter alia through the legal instruments listed below, as
well as any amendments, revisions, replacement measures, implementing measures and any other
related measures:
WT/DS463/1 • G/L/1034 • G/TRIMS/D/38 • G/TBT/D/45

- Federal Law No 128-FZ of 28 July 2012 "on Amendments to the Federal Law ‘On
Production and Consumption Wastes' and Arti cle 51 of the Budget Code of the Russian
Federation" as published in the Russian Gazette No. 5845 of 30 July 2012;
- Government Decree No. 870 of 30 August 2012 "on Recycling Fee for Wheeled Transport
Vehicles" as published in the Russian Gazette No. 5873 of 31 August 2012;
- Joint Order of 23 June 2005 of the Ministry of Internal Affairs No. 496, the Ministry of
Economic Development and Trade No. 134 and th e Ministry of Industry and Energy No.
192 "On approving Regulation on vehicle registration passports and chassis registration
passports" as amended, including, by Joint Order of 30 August 2012 of the Ministry of
Internal Affairs No. 828, the Ministry of Industry and Trade No. 1227 and the Federal
Customs Service No. 1744 "On amendments to Joint Order of 23 June 2005 of the Ministry
of Internal Affairs, the Ministry of Econom ic Development and Trade and the Ministry of
Industry and Energy N 496/192/134" as pu blished in the Russian Gazette No. 203 of 5
September 2012;
- Resolution of the Government of the Russian Federation No. 520 of 20 June 2013 on, inter
alia, the approval of the rules for granti ng subsidies from the federal budget to
organizations and individual entrepreneurs to reimburse expenses related to their handling
of wastes resulting from the loss of consumer good characteristics of wheeled means of
transport for which the recycling fee was paid as published in the Collection of Laws of the
Russian Federation of 1 July 2013, N 26, p. 3342.
Russia's measures appear to be inconsistent with Russia's obligations under the covered
agreements and, in particular:
- Article I:1 of the GATT 1994;
- Article II:1(a) and (b) of the GATT 1994;
- Article III:2 of the GATT 1994;
- Article III:4 of the GATT 1994;
- Article 2.1 and 2.2 of the TRIMs Agreement alon e or in conjunction with Item 1(a) of the
Illustrative List annexed to that Agreement;
- Article 2.1 and 2.2 of the TBT Agreement.
Japan reserves the rights to raise additional factual claims and legal matters during the
course of the consultations.
Japan looks forward to receiving Russia's reply to this request for consultations and to
agreeing upon a mutually acceptable date for the consultations.