RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/50
28 April 1998
(98-1705)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Additional 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 meeting.
_______________
TABLE OF CONTENTS
Page Question
IV POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(b) Characteristics of national tariff 1 1-5
(d) Other duties and charges
-S t a t e  T a x 2 6- VAT and Excise Tax 3 7-23
- Seasonal Tariffs 16 24-25
- Corporate Profit Tax 17 26
(e) Quantitative import regulations 18 27
(f) Import licensing procedure 18 28-30
(h) Customs valuation 19 31(l) Rules of origin 19 32-33
(o) Safeguard regime 21 34
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards 21 35-50
(c) Sanitary and phytosanitary measures 28 51-71(b)(c) Combined 39 72-73(l) Government procurement 40 74-89
4. Policies Affecting Foreign Trade in Agricultural Products
(a) Imports
- Concerning the authorization procedure for imported food
stuffs45 90-93
- New Agricultural Import Law 47 94-98WT/ACC/UKR/50
Page ii
Page Question
(b) Exports
- Export Subsidies 50 99-100
(c) Internal policies
- State Trading 51 101-102
- Domestic Support and Export Subsidies 53 103-109
- Re: Supporting Table DS:1 (Green Box Programmes) 56 110-118- AMS (Supporting Table DS:4) 58 119-123
- Market Price Support (Supporting Table DS:5) 59 124-129
- Non-Product-Specific Support (Supporting Table DS: 9) 60 130- Law on the State Regulation of Agricultural Produce 61 131
- Article I (Tariff Regulations) 61 132-138
- Article II (Seasonal Duties) 64 139-146- Article III (Quotas) 66 147-153
- Article V 68 154
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive Standards of Protection, Including Procedures for the
Acquisition and Maintenance of Intellectual Property Rights
(a) Copyright and related rights 68 155-156
(e) Patents 69 157
(g) Layout designs of integrated circuits 70 158
4. Enforcement
(e) Criminal procedures 70 159
5. Laws, Decrees, Regulations and Other Legal Acts 70 160WT/ACC/UKR/50
Page 1
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(b) Characteristics of national tariff
Question 1.
We refer to Ukraine's plans to review its customs tariff in order to eliminate most of the mixed
tariffs.  When are the mixed tariffs likely to be eliminated?  How will the elimination of mixedtariffs be achieved?
Answer:
Work is continuously progressing on bringing Ukrainian customs tariffs in line with WTO
requirements.
If by "mixed tariffs" you mean "combined rates", they are still used for goods in Groups 1-24
of the Foreign Trade Nomenclature, but the Cabinet of Ministers is considering the draft of new Law
of Ukraine "On Making Changes to the Ukrainian Law "On State Regulation of Imports ofAgricultural Produce" submitted by the Ministry of Foreign Economic Relations and Trade, which
will authorize the customs rates to be altered and simplified in order to comply with Ukraine’s
international obligations.
The Decree of the President of Ukraine No.255/66 of 6 June 1996 approves the Concept
Paper on the Transformation of the Customs Tariff of Ukraine 1996-2005 which establishes an importduty rates limit level and a schedule plan for their transformation to comply with WTO standards.
The customs tariffs on 1 January 1998 presented the following picture:
- 20 per cent of all rates were equal to their limit rate levels;
- 11 per cent of the rates exceeded them;
- 69 per cent of all rates were lower.
On 17 February 1998 the customs tariffs could be classified as follows:
- ad valorem  rates (calculated on a per cent basis of value) 77.6 per cent;
- specific rates (calculated in monetary values per unit) 2.6 per cent;
- combined rates (including ad valorem and specific rates) 19.8 per cent.
Question 2.
Are their plans to convert specific tariffs in the customs tariff to ad valorem  rates?
Answer:
Of course, the intention is to introduce ad valorem  rates.
See the answer to question 1.WT/ACC/UKR/50
Page 2
Question 3.
Could Ukraine continue to provide Working Part y members with up-to-date tariffs in electronic
form?  When will Ukraine formally introduce an up-to-date nomenclature?  Could Ukraine
inform about the evolution of its weighted average tariff?
Answer:
Ukraine shall continue e-mailing information on changes in tariffs to the Working Party
members. Ukraine intends to implement the new nomenclature in 1999. The average import duty rate
has decreased from 5.12 per cent at the end of 1996 to 4.16 per cent at the end of 1997.
Question 4.
We would request a commitment by Ukraine that  such non-tariff barriers as, for example,
minimum prices, quantitative restrictions, seasonal import duties on agricultural produce, that
have been established by the law of Ukraine of wh ich we received the text recently, will be lifted
on Ukraine's accession to the WTO as being inco nsistent with the provisions of the Agreement
on Agriculture and that the customs tariff of Ukraine will remain the only instrument of
protection henceforth.
Answer:
When Ukraine accedes to the WTO, it will end eavour to comply with the requirements of the
Agreement on Agriculture and the Agreement on Safeguards.
Question 5.
Please clarify if Ukraine's commitment to maintain the maximum level of import duties at
30 per cent (with a few possible exceptions) relates to agricultural products too, and whether it
would be binding on Ukraine's accession to the WTO.  If so, this commitment seems not to be
harmonized with the content of the market acces s offer submitted by Ukraine where tariff rates
planned even for 2002 and earlier years exceed the level of 30 per cent.
Answer:
According to the Concept of Transformation of the Customs Tariff for the period from 1996
through 2005 (document WT/ACC/U KR/22/Add.1), the maximum level of tariffs for agricultural
produce does not exceed 70 per cent. This document is an invitation to enter market accessnegotiations. The level of the tariffs that will be applied after Ukraine accedes to the WTO depends on
the outcome of the negotiations.
(d) Other duties and charges
State Tax
Question 6.Concerning the State tax described in WT/ACC/UKR/32:WT/ACC/UKR/50
Page 3
Can Ukraine confirm that this tax is applied equally to imported and domestic goods on a
"national treatment basis" as req uired in Article III of the GATT?
Is the State tax applied on the right of appeal in customs matters?  If so, please describe the
scope and nature of the tax.
Is this tax in any way related to the licensing of business activity?  Is it related to the right to
import or to export?  If so in either case, please describe the scope and nature of the tax.
In what specific instances is the tax applied on an ad valorem   basis?  Why is there a tax on
documents substantiating industrial property rights?  Please describe the scope and nature of
the tax.
Answer:
The State tax is applied on the basis of a national regime in compliance with Article III of the
GATT.
In the right of appeal in customs matters the State tax is not applied. If an appeal in customs
matters is submitted to court, the state tax is applied on a general basis.
VAT and Excise Taxes
Question 7.
WT/ACC/UKR/27/Add.2 contains a schedule of excise rates and customs duties for certain
commodities.
Is this schedule still accurate?  If not, please update it.
Note 4 to the schedule indicates that there is a temporary exemption from payment until the
year 2000 of excise duties for Ukrainian produced television sets, tape recorders, and other
products.  Why are these specific products exem pted from the excise duty payment?  If only
domestically produced products are exempted from the excise tax, it would appear to violateArticle III and it could also constitute a subsidy.
Answer:
We submit in a tabulated form all excise duties in Ukraine to domestic and imported goods.
Increases in excise rates were introduced as a temporary measure in connection with the sharp
increases of imports in certain categories of goods. The imports caused a slow down in domesticproduction which resulted in payment balance difficulties.
List of Goods Subject to Excise Duty
CN numberExcise Duty for
Import GoodsExcise Duty for
Domestic GoodsTerm of
ValidityLegal Basis (Law)
0207 39 130
0207 39 2300.03 ECU/kg 0.03 ECU/kg 23.12.97
No. 767/97-SRWT/ACC/UKR/50
Page 4
CN numberExcise Duty for
Import GoodsExcise Duty for
Domestic GoodsTerm of
ValidityLegal Basis (Law)
0207 41 510 0.03 ECU/kg 0.03 ECU/kg 23.12.97
No. 767/97- SR
0901 0.2 ECU/kg 0 1996- 2000 11.07.96
No. 313/96- SR
1604 30 100 5 ECU/kg 0 1996- 2000 11.07.96
No. 313/96- SR
1604 30 900 3 ECU/kg 0 1996- 2000 11.07.96
No.  313/96- SR
1605 10 000 2 ECU/kg 0 1996- 2000 11.07.96
No.  313/96- SR
1605 20 000 0.5 ECU/kg 0 1996- 2000 11.07.96
No.  313/96- SR
1605 30 000 2.5 ECU/kg 0 1996- 2000 11.07.96
No.  313/96- SR
1605 40 000 1 ECU/kg 0 1996- 2000 11.07.96
No.  313/96- SR
1806 20 0.1 ECU/kg 0.1 ECU/kg 23.12.97
No.7/97- SR
1806 31 0.1 ECU/kg 0.1 ECU/kg 23.12.97
No.7/97- SR
1806 32 0.1 ECU/kg 0.1 ECU/kg 23.12.97
No. 767/97- SR
1806 90 110 -1806 90 3900.3 ECU/kg 0 1996- 2000 23.12.97
No. 767/97- SR
2101 10 110 0.8 ECU/kg 0 1996- 2000 11.07.96
No. 313/96- SR
2203 00 0.04 ECU/l 0.04 ECU/l 11.07.96
No. 313/96- SR
2204(ex 2204 10
ex 2204 30)0.15 ECU/l see 2) 1996- 2000 07.05.96
No. 178/96- SR.18.02.97
No. 74/97- SR.12.06.97
No. 339/97- SR
2204 10 0.3 ECU/l see 2) 1996- 2000 07.05.96
No. 178/96- SR.08.02.97No. 74/97- SR.12.06.97
No. 339/97- SR
2204 30 - see 2) 1996- 2000 07.05.96
No. 178/96- SR.12.06.97
No. 339/97- SR
2205 0.5 ECU/l see 2) 1996- 2000 07.05.96
No. 178/96- SR.12.06.97
No. 339/97- SR.12.06.97
No. 339/97- SR
2206 0.5 ECU/l 0.5 ECU/l 07.05.96
No. 178/96- SR.12.06.97
No. 339/97- SRWT/ACC/UKR/50
Page 5
CN numberExcise Duty for
Import GoodsExcise Duty for
Domestic GoodsTerm of
ValidityLegal Basis (Law)
2207 3 ECU/l/vol % see 3) 1996- 2000 07.05.96
No.178/96- SR.08.02.97No. 74/97- SR.12.06.97No. 339/97- SR
2208 10(ex 2208 10 100)- 07.05.96
No. 178/96- SR
2208 10 100 3 ECU/l/vol % 3 ECU/l/vol % 07.05.96
No. 178/96- SR
2208 20 -
2208 90 1003 ECU/l/vol % see 2) 3) 1996- 2000 07.05.96
No. 178/96- SR.12.06.97No. 339/97- SR
2208 90 310 -2208 90 3903 ECU/l/vol % 3 ECU/l/vol % 07.05.96
No. 178/96- SR
2208 90 510 -2208 90 7903 ECU/l/vol % 3 ECU/l/vol % 07.05.96
No.178/96- SR
2208 90 910 -2208 90 9903 ECU/l/vol % 3 ECU/l/vol % 07.05.96
No.178/96- SR
2401 0 0 06.02.96
No.30/96- SR
2402 10 000 5 ECU/100 pcs 5 ECU/100 pcs 06.02.96
No. 30/96- SR
2402 20 000 2 ECU/1000 pcs 2 ECU/1000 pcs 06.02.96
No. 30/96- SR
2403(ex 2403 10 000ex 2403 99 100)0 06.02.96
No. 30/96- SR
2403 10 000 2 ECU/kg 2 ECU/kg 06.02.96
No. 30/96- SR
2403 99 100 2 ECU/kg 2 ECU/kg No.06.02.96
No. 30/96- SR
2710 00 110 12 ECU/1000 kg 12 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 150 12 ECU/1000 kg 12 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 210 12 ECU/1000 kg 12 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 250 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 310 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 3302710 00 350
A- 72, 76, 80 8 ECU/1000 kg 8 ECU/1000 kg 23.12.97
No. 767/97- SR
A- 90, 91, 92, 93 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97No. 767/97- SRWT/ACC/UKR/50
Page 6
CN numberExcise Duty for
Import GoodsExcise Duty for
Domestic GoodsTerm of
ValidityLegal Basis (Law)
A- 94, 95, 96, 98 40 ECU/1000 kg 40 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 370 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 390 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 410 12 ECU/1000 kg 12 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 450 12 ECU/1000 kg 12 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 510 12 ECU/1000 kg 12 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 550 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 590 20 ECU/1000 kg 20 ECU/1000 kg 23.12.97
No. 767/97- SR
2710 00 6102710 00 650
2710 00 6906 ECU/100 kg 6 ECU/100 kg 11.07.96
No. 313/96- SR
4011 10 000 5 ECU/pcs 5 ECU/pcs 24.05.96
No. 216/96- SR.12.06.97
No. 340/97- SR
4203 10 000 35% 35% 11.07.96
No. 313/96- SR
4303 10 900 30% 0 1996- 2000 11.07.96
No. 313/96- SR
7113 -  7114 35% 35% 11.07.96
No. 313/96- SR
8215 10 10% 10% 11.07.96
No. 313/96- SR
8215 91 000 10% 10% 11.07.96
No. 313/96- SR
8516 50 000 5 ECU/pcs 5 ECU/pcs 11.07.96
No. 313/96- SR
8520 5% 0 1996- 2000 11.07.96
No. 313/96- SR
8521 10 3108521 10 3905% 5% 11.07.96
No. 313/96- SR
8523 Only audiowithout recording0.05 ECU/pcs 0.05 ECU/pcs 11.07.96
No. 313/96- SR
8523 Only videowithout recording0.2 ECU/pcs 0.2 ECU/pcs 11.07.96
No. 313/96- SR
8524 Only audiowith recording0.1 ECU/pcs 0.1 ECU/pcs 11.07.96
No. 313/96- SR
8524 Only video
with recording0.5 ECU/pcs 0.5 ECU/pcs 11.07.96
No. 313/96- SRWT/ACC/UKR/50
Page 7
CN numberExcise Duty for
Import GoodsExcise Duty for
Domestic GoodsTerm of
ValidityLegal Basis (Law)
8524 90 100 0.2 ECU/pcs 0.2 ECU/pcs 11.07.96
No. 313/96- SR
8528 10 0.8 ECU/cm
screen diagonal0 1996- 2000 11.07.96
No. 313/96- SR
8703 10 0.6 ECU/cm3 see 1) 1996- 2007 24.05.96
No. 216/96- SR.12.06.97
No. 340/97- SR
8703 21 0.2 ECU/cm3 see 1) 1996- 2007 24.05.96
No. 216/96- SR.12.06.97
No. 340/97- SR
8703 22 0.2 ECU/cm3 see 1) 1996- 2007 24.05.96
No. 216/96- SR.12.06.97
No. 340/97- SR
8703 23
0.3 ECU/cm3 see 1) 1996- 2007 24.05.96
No. 216/96- SR.12.06.97
No. 340/97-. SR
0.6 ECU/cm3 see 1) 1996- 2007 24.05.96
No. 216/96-SR.12.06.97
No. 340/97-SR
8703 24 1 ECU/cm3 see 1) 1996-2007 24.05.96
No. 216/96-SR.12.06.97
No. 340/97-SR
8703 31 0.2 ECU/cm3 see 1) 1996-2007 24.05.96
No. 216/96-SR.12.06.97
No. 340/97-SR
8703 32 0,3 ECU/cm3 see 1) 1996-2007 24.05.96
No. 216/96-SR.12.06.97
No. 340/97-SR
8703 33 0.8 ECU/cm3 see 1) 1996-2007 24.05.96
No. 216/96-SR.12.06.97
No. 340/97-SR
8703 90 100 ECU/pcs see 1) 1996-2007 24.05.96
No.216/96-SR.12.06.97
No. 340/97-SR
8711 40 000
8711 50 000
8711 90 0000.2 ECU/cm3 0.2 ECU/cm3 24.05.96
No. 216/96-SR
8716 10 990 100 ECU/pcs 100 ECU/pcs 24.05.96
No. 216/96-SR
9303 20 20 ECU/pcs 20 ECU/pcs 11.07.96
No. 313/96-SR
9303 30 20 ECU/pcs 20 ECU/pcs 23.12.97
No. 767/97-SR
9304 00 000 10 ECU/pcs 10 ECU/pcs 23.12.97
No. 767/97-SRWT/ACC/UKR/50
Page 8
CN numberExcise Duty for
Import GoodsExcise Duty for
Domestic GoodsTerm of
ValidityLegal Basis (Law)
9401 5% 0 1996-2000 11.07.96
No. 313/96-SR
9403 10 5% 0 1996-2000 11.07.96
No. 313/96-SR
1. The revenues from sale of passenger and carrier/passenger cars, produced by all Ukrainian
enterprises (regardless of form of ownership) from imported or domestic components will not be
subject to excise until 2007 if the production volume is not less than 1000 units a year.
2. Temporarily, for the period from 1996 till 2000 the following excise rates are established for
domestic goods, produced from domestic raw materials:
grape natural ordinary dry wine - ECU 0.02 for 1 litre
(codes 2204.21290; 2204.29100-2204.29290);
grape natural ordinary fortified
wine -ECU 0.1 for 1 litre
(codes 2204.21390; 2204.29310-2204.29390);
fruit and berry wine - ECU 0.2 for 1 litre
(2206.00930;2206.00990),
Cognac, brandy seasoned for no
less than three years- ECU 0.25 for 1 litre of pure alcohol
(2208.20);
Raw Wine Materials sold to
retailers and consumers- ECU 0.15 for 1 litre
(2204.30);
Vermouth and other wines (natural
or with herbal additives or aromatic
extracts)- ECU 0.15 for 1 litre
(2205).
3. Ethyl alcohol used by domestic producers to manufacture alcoholized juice, fruit juice water,
infusions and perfume - the excise rate established at the level of ECU 0.2 for 1 litre of pure alcohol.
Question 8.
In its responses to questions from the last tw o Working Party meetings, Ukraine has stated that
imports delivered under State contracts of orders are subject to taxation "on general terms".  Itwould be useful if Ukraine could clarify whether they were exempted from VAT and other taxes
and duties, and what, if any relation such pref erences would have with those on goods involved
in production-sharing agreements.
Answer:
We reaffirm that goods, imported under government procurement, are subject to tax,
including VAT and excise.  The procedure for such tax is established by the Law of Ukraine "On the
Value Added Tax" and the Law of Ukraine "On Excise Duty Rates for Certain Goods (Products)".WT/ACC/UKR/50
Page 9
The translated texts of these laws have already been submitted and are listed in WT/ACC/UKR/33
and WT/ACC/UKR/44.
The goods purchased under government procurement are not covered by production-sharing
agreements. In other words such goods are not exempt from taxation.
See also the answer to question 21.
Question 9.
In September 1997 Ukraine amended the VAT la w to exempt coal and electricity. Further,
Ukraine has delayed use of accrual accounting for VAT calculation until 1999.  This would
appear to maintain GATT inconsistent tax t reatment of some trade through at least 1998.
Why has Ukraine taken these measures?
Has Ukraine considered what impact this change could have on its WTO accession?
Are further changes in the law likely?
Answer:
Article 11.6 of the Ukrainian Law "On Value Added Tax" provided for the application of a
zero value added tax on sales until 1 January 1998. The provision applied to:
- coal and products of its enrichment, coal and peat briquettes;
- natural gas;
- electricity.
Transition of Ukraine to a value added tax calculation on accrual basis is postponed until
1 January 1999.  This is an emergency measure caused by a payments crisis in settlements between
government agencies as well as in budget ary allocations to the government agencies.
Question 10.
The use of minimum import values for assessment of both excise duties and VAT would appear
to be inconsistent with the WTO.  These value s are set pursuant to the Cabinet of Ministers
Resolution No. 502 of May 1997 (excise duties) and a draft Presidential Decree (VAT).  Could
Ukraine list the goods subject to these minimum prices?
Answer:
The Resolutions of the Cabinet of Ministers temporarily establishes minimum customs values
for imported goods. The objective is to prevent artificial reduction of the customs value of goods and
thus to safeguard adequate rates of VAT and excise.
The minimum customs value applies to the following goods:
1. Tobacco products.
2. Malt beer.3. Liquor.
4. Coffee (beans and instant)WT/ACC/UKR/50
Page 10
5. Caviare (black and red)
6. Legs (chicken and turkey), frozen
7. Chocolate.
8. Fur clothing.
9. Crabs and lobsters (canned)
10. Natural leather clothing.11. Audio and video cassettes ( blank)
12. Television sets.
13. Cars (new and second hand ), and tyres for them.
14. Pork.
15. Milk and cream, butter, hard cheeses, margarine (artificial butter)
16. Onions.
17. Wheat, barley, maize, buckwheat, millet and canary seeds.18. Cereal groats and pellets.
19. Starches ,inulin.
20. Soya.
21. Rape.
22. Vegetables, fruit, nuts and other edible parts of a plant, prepared or canned in vinegar or
vinegar acid.
23. Tomatoes, prepared or canned in vinegar or vinegar acid.
24. Jams, candied fruit jellies, fruit jelly, puree and paste of fruit and nuts.
25. Fruit and vegetable juices.
26. Yeast and prepared cooking powders.27. Siftings and other sifting waste.
28. Textile products: suits (complete), jackets, dresses, skirts, skirts-trousers, overalls with bibs
and broad straps, britches and knitted shorts for women and girls, underwear for men and
boys, knitted fabric products, including pyjamas, bathing robes, wrappers and like products,
lingerie for women and girls, knitted products, including pyjamas, lady’s dressing gowns(peignoirs), bathing robes and gowns and like products, sleeveless sporting vests, jerseys and
like knitted products, sweaters, pullovers, jumpers, waistcoats and like stockinet products;
sport, ski and bathing suits; overcoats, jackets, coats, windbreaker and stormbreakers, blouses,
shirts, linen, footwear, hats, and other headgear.
Question 11.
Please produce in a table the complete list of Uk rainian excise taxes as they are applied (a)  to
Ukrainian domestic goods, (b)  to imports, and (c)  and exceptions for imports from particular
countries.
Answer:
Excise taxes listed in the answer to question 7 apply to all goods regardless of their origin.
Question 12.
The taxation treatment of cross-border transact ions, and the relationship to the taxation
treatment of domestic transactions, is a key area for the examination of a country's policies
against WTO requirements.  The scope for an exam ination of taxation measures should not be
confined only to ordinary customs duties.
Given that VAT, excises, sales taxes and turnover taxes are, in varying degrees, major elements
of different national taxation systems, inconsiste ncies in the way that such taxes may operate in
a particular national taxation system can give rise to substantial trade distortions.  SuchWT/ACC/UKR/50
Page 11
distortions could create significant and anomalou s differences in the conditions of access to
Ukraine's market that are faced by suppliers from different countries.
The purpose of examining taxation measures  against WTO requirements is essentially to
determine whether or not the taxes concerned are levied at discriminatory rates or are applied
in a discriminatory manner in particular to de termine whether or not, in relation to each
measure, all imported goods are accorded most-favoured-nation (as required under Article I of
the GATT 1994) and national treatment (as required under Article III of the GATT 1994).
In relation to VAT and excise Ukraine, as a future WTO Member, will have the right to decide
the following things:
- the products on which VAT or excise will be imposed;
- the rates of VAT or excise that will be applied on such products;
- the industries, sectors or entities that will be exempt from the payment of VAT or excise
of subject to the payment of VAT or excise at  a concessional rate, whether in relation to
particular products or across the whole range of products that would otherwise be
subject to the full rate of VAT or excise;
- the entities that will have the right to reimbursement of VAT paid on the inputs they
have purchased;
- the product coverage of such reimbursement rights.
However Ukraine, as a future WTO Member, will need to ensure that the following conditions
are completely satisfied in relation to all the products of all WTO Members:
- that VAT or excise imposed on any particular product will be levied at exactly the same
rate and applied in exactly the same manner for all domestic transactions involving such
products, regardless of the product’s country of origin;
- that any exemption from payment of VAT or excise that is provided to a particular
industry, sector or entity in the purchase of any product, will apply to all such purchases
of that product regardless of the product's country of origin;
- that any rights accorded to an entity in re lation to the remittance of VAT paid on the
purchase of any inputs will be accorded to all purchases of the inputs covered by such
rights, regardless of the country of origin of the inputs concerned.
Can Ukraine provide an assurance that, under its current VAT and excise arrangements, in
respect of the rates at which these taxes apply and in the manner of their application including
any rights of remission of VAT already paid on  purchased inputs, all of the conditions listed
above are completely satisfied?
Answer:
Ukraine can assure that its current VAT and excise arrangements and the methods of their
application, including all entitlements for exemptions therefrom as well as levies relating to natural
resources and utilities comply in all respects with the requirements of GATT Articles I and II and in
the light of the provisions of GATT Article XXIV.
Question 13.
If a categorical assurance cannot be given, we would also appreciate complete details of
Ukraine's plans to bring its taxation policies and practices into full conformity with bothWT/ACC/UKR/50
Page 12
Articles I and II of the GATT 1994, in particular, information on when each of the WTO
inconsistent aspects of its policies and practices will be brought into full conformity with WTO
requirements.
Answer:
See the answer to question 12.
Question 14.
In document WT/ACC/UKR/32 it is indicated that excise taxes "shall not be imposed in the case
of excisable goods (products) that are exported for foreign currency".  Are excise taxes rebated
upon export, or simply not collected upon export?  Is there an established procedure to ensure
that any rebates or exemptions of excise taxes do not exceed that amount which could have been
collected or imposed on products consumed in th e production of export goods if such goods had
been sold for domestic consumption?
Answer:
Excise taxes are not payable on goods exported for foreign currency. It is therefore possible to
estimate the production or manufacture cost of such goods.
Question 15.
Please update the status of application of Ukraine's VAT and excise taxes in the context of (a)
national treatment;  (b)  MFN treatment, especi ally vis-a-vis the Russian Federation and other
republics of the former Soviet Union; and (c)  other WTO provisions, e.g., use of minimum
import valuation and quantitative restrictions.  (WT/ACC/UKR/41 questions 15 and 50,
WT/ACC/UKR/48)
Answer:
The application of excise duty by Ukraine in the context of:
(a) the national regime;
(b) most-favoured-nation treatment;
is set out in the answer to question 7.  As for th e application of the excise tax to goods imported from
the Russian Federation and other CIS countries is concerned, it does not contain any exceptions from
the general rule.
The application of VAT by Ukraine is determined by the Law of Ukraine No. 168/97-VR of
3 April 1997 "On Value Added Tax" which was submitte d in a set of documents for the fifth Working
Party meeting on Ukraine's accession to the WTO (WT/ACC/UKR/44).
Imposition of minimum customs value is a temporary measure to prevent artificial lowering
of the customs value on imported goods to ensure the payment of the full amount of VAT and excise
duty.
Question 16.
In the answer to question 1 in document WT/ACC/UKR/41 it is indicated that exports are
exempted from the VAT and that "if a manufacturing company exports its products it is
reimbursed the paid VAT in accordance with th e active procedure irrespective of the type ofWT/ACC/UKR/50
Page 13
operation of acquiring the parts or raw material s".  What procedures are followed to ensure
that the amount of VAT taxes which are refunded upon export do not exceed the amount of
VAT levied on the produce being exported?
Answer:
In accordance with subparagraph 6.2.1 of Article 6 of the Law of Ukraine No. 168/97-VR,
dated 3 April 1997, "On the Value Added Tax", as amended, the rate of value added tax on exportedgoods is zero. Where the value added tax has been paid on such goods, it is refunded.  The exporter
does not receive anything above and beyond the value added tax paid.
In accordance with paragraph 11.6 of Article 11 of the said law, till 1 January 1999, when
goods (works, services) are taken (exported) outside Ukraine’s customs territory under barter(exchange of commodities) operations, the amount of value added tax paid (calculated) in connection
with purchase of goods (works, services), shall no t be attributed to the increase of tax credit but
included in the total expenditures of the taxpayer.
Question 17.We support Ukraine's policy objective of taking steps to provide full national treatment in the
excise taxation of all excisable imported products.
We would appreciate details of where matters cu rrently stand in relation to the implementation
of this policy objective.
In reply to question 2 of document WT/ACC/UKR/41 Ukraine has indicated that such steps
may involve changes to applied rates of customs du ty.  What changes to applied rates of customs
duty have taken place after excise reunification?  Are any further changes planned?  If so, we
would appreciate details of such changes.  Wi ll Ukraine seek to revise its proposed tariff
bindings to take account of such changes?
Answer:
The unification of excise rates is almost comp lete. Different excise rates for domestic and
imported foods have been established on a temporary basis for certain alcoholic products (e.g., grape
wine, cognac, brandy), colour television sets, tape recorders, furniture, food products, clothing
produced from nutria, fox, mink and Arctic fox fur, as well as vehicles (passenger and
carrier/passenger automobiles and motor-cycles ) and tyres for passenger cars.
For additional information on produce subject to excise, see the table in the answer to
question 7.
Question 18.
In reply to question 4 of document WT/ACC/UKR/41, Ukraine has affirmed that national
treatment is provided in the excise taxation of imported cars.  However, Ukraine has not stated
that national treatment is provided in the value-added taxation of imported cars.  Could
Ukraine confirm that this is the case?
Answer:
Zero VAT shall be applied to sale transactions on automobiles produced by non-residents
with the percentage of foreign or domestic invest ments in their assets being no less than US$150WT/ACC/UKR/50
Page 14
million.  To qualify for this exemption the latter have to be in monetary form.  The exemption is
provided for in the Law of Ukraine "On Promoting Production of Automobiles in Ukraine"
No.535/97-VR, of 19 September 1997. When Ukraine accedes to the WTO, it will adhere to the
principle of applying national regime to taxation.
Question 19.
It is not clear that Ukraine's reply to question 6 of WT/ACC/UKR/41 recognizes the crucial
distinction between customs fees and charges which will need to be brought into consistencywith Article VIII of the GATT 1994, and applied customs duties and other duties and charges
which, from the date of accession, will need to be consistent with Articles I and II of theGATT 1994 and the Uruguay Round Understandings on the GATT_1994 and on the
Interpretation of Article II:1(b) of the GATT 1994.
Are the specific duty rates mentioned in Ukraine's reply to question 6 of document
WT/ACC/UKR/41 components of ordinary customs duties or other duties and charges within
the meaning of Articles I and II of the GATT 1994 and the Uruguay Round Understanding on
the Interpretation of Article II:1(b) of the GATT 1994?
If so, all customs fees and charges - including an y such charges that have  been incorporated into
Ukraine's customs duties or other duties and charges - will need to be determined and applied
separately from Ukraine's customs duties and ot her duties and charges in full conformity with
the requirements of Article VIII of the GATT 1994.  What are Ukraine's plans in this area?
Answer:
Customs fees, mentioned in the answer to question 6 of Document WT/ACC/UKR/41 are not
a component part of usual customs tariffs. In accordance with the Resolution of the Cabinet of
Ministers of Ukraine No.65, of 27 January 1997, customs fees are charged for carrying out customsservices, which include customs legalization of goods, holding the goods under customs control, etc.
The fees are set in accordance with the requirem ents of Article VIII of  GATT, and are charged
uniformly regardless of the country of origin of goods. There are no privileges in existence for
domestic importers or producers.
Question 20.How does Ukraine reconcile its reply to question 77 of document WT/ACC/UKR/41 in respect
of the preferential VAT and excise exemption provisions of the Ashkabad Agreement on CIS
Industrial Cooperation with its future WTO obligations.
Answer:
The Ashkabad Agreement applies only to enterprises connected by a single production
process with enterprises in other CIS countries which produce final products. This is why quantity of
production cooperation supplies are insignificant (1.9 per cent of the total trade turnover with CIS
countries). Only semi-products and spares, relevant to the production process, are exempted from
value added tax and excise tax. Final products, sold in the domestic market or exported are fullytaxed.
Ukraine considers the Ashkabad Agreement a minor temporary measure of support for
Ukrainian enterprises until the process of reform in the national economy is completed in the coming
years.WT/ACC/UKR/50
Page 15
Question 21.
In response to question 77 in WT/ACC/UKR/41 regarding the Ashkabad Agreement, it is stated
that Ukraine selectively exempts trade in th e elements of co-production agreements from
"import and export duties, taxes, excises, and quantitative restrictions", and that regulations
will determine the procedure of granting VAT  and excise preferences when conducting
reciprocal shipments of products under production cooperation agreements between countrieswhich are parties to the agreement.
Why should such agreements qualify for tax preferences?
What is the exact nature of preferences which Ukraine may grant under the Agreement and any
regulations?
How is this sort of exemption justifiable within the provisions of Articles I and III of the GATT?
Answer:
According to the Ashkabad Agreement on Gene ral Conditions and Mechanism of Promotion
of the Development of Production Co-operation of En terprises and Industries of the Member States of
the CIS of 23 December 1993 and in accordance with the Regulations on the Procedure of Shipments
and Customs Legalization of Products Under Produc tion Co-operation of Enterprises and Industries of
the Member States of the CIS, confirmed by  Re solution of the Cabinet of  Ministers of Ukraine
No.323 of 23 May 1994, shipments of products intended for cooperative production are carried out onthe basis of commercial contracts concluded by the subjects of entrepreneurial activity in accordance
with the relevant governmental, sectoral or interm inisterial agreements.  Products shipped under such
agreements are exempt from import and export taxes, excise tax and value added tax.
However, to be granted the exemptions from export, taxes, import taxes, excise and value
added taxes, the subjects of the entrepreneurial activity that directly import such products on the basisof the above intergovernmental, sectoral and interministerial production co-operation agreements
must meet certain requirements provided for in the Ukrainian legislation.  The products, imported into
the customs territory of Ukraine pursuant to production co-operation agreements, cannot be
re-exported to third countries without a written consent of the authorized organ of the supplying state.
As the Ashkabad Agreement was concluded within the framework of the CIS among Ukraine
and all other member states of the CIS to promote free trade regime, and is an integral part of
additional bilateral free trade agreements among CIS countries, the import, export, excise and value
added tax exemptions appear to fall within the provisions of GATT Article XXIV.
Question 22.
WT/ACC/UKR/48 states that from May 1997, VAT tax is applied to all goods consumed in the
customs territory of Ukraine regardless of origin.  We understand, however, that Ukraine
recently entered into an agreement with the Ru ssian Federation exempting trade in certain
items from taxation.
Would Ukraine please explain the nature of these exemptions, if they are granted to all trade in
specific categories, or if the exemptions are unique to trade in certain goods with the Russian
Federation?WT/ACC/UKR/50
Page 16
If the latter, how is this consistent with Ukraine's effort to joint the WTO and the MFN
obligation contained in Article I of the GATT?
Are imported coal and coal concentrating products and briquettes exempt from the VAT along
with Ukrainian coal?  Is this one of the pro ducts covered by the Agreement on VAT exemption
with the Russian Federation?
Answer:
Less than seven years ago, when Ukraine and the Russian Federation were integral parts of
the Soviet Union, their economies were inseparable.  After the demise of the Soviet Union and the
emergence of Ukraine and the Russian Federation as two independent countries, both of them
endeavoured to save their economies.  Their production sources theretofore structurally and
economically integrated, became separated and even fragmented. It was desperately important to save
existing industrial and agricultural operations, to prevent unemployment, and to stabilize economy.
Some important help came from Western European and North American countries, but steps had to betaken locally.
In an effort to preserve at least some of the former production structure, Ukraine and the
Russian Federation entered into a General Free Trade Agreement.  It must be remembered in this
context that they remained major business partners in exchange of goods, and Ukraine continued to be
dependent on liberal gas and oil supplies from the Russian Federation.  Within the context of theirgeneral agreement, Ukraine and Russian Federation made a subsidiary agreement for mutual
exclusion of VAT for their respective imports.  Such  exclusion also applies to coal, its concentrated
products, and briquettes.  This agreement, as indeed the main agreement on free trade, is important for
Ukraine.
It is submitted that the VAT exemptions fall within the provisions of GATT Article XXIV,
and it is hoped that it will be recognized as such after a waiver of the prescribed procedural
requirements.
Question 23.
In WT/ACC/UKR/48, Ukraine states that the calculation for excise taxes "takes into
consideration" actually paid duties.  Could Uk raine explain what that means in practice?
Answer:
The following formula is applied in order to calculate the excise duty:
(V+D) x R:100
V is a customs value in Hryvnias,
D is customs duties, fees and charges, andR is the excise duty rate.
Seasonal Tariffs
Question 24.
We refer to Ukraine's intention to apply seasonal tariffs (replies to question 12 of document
WT/ACC/UKR/41 and question 16 of document WT/ACC/UKR/25/Add.1).  Ukraine's July 1997
"Law on the State Regulation of Agricultural Produce" is also relevant.WT/ACC/UKR/50
Page 17
Could Ukraine provide details of the seasonal tariffs that it intends to apply, including a
complete list of the products that will be subject to seasonal tariffs, seasonal details and the rates
that will apply?
Is it Ukraine's intention to apply seasonal tariff s within its tariff bindings for each of these
products?  Or does Ukraine intend to negotiate  separate tariff bindings for each of these
products for each of the seasons?
Answer:
According to Article 2 of the Law of Ukraine No.468/97-VR of 17 July 1997 "On the State
Regulation of Import of Agricultural Produce", as amended by the Law of Ukraine of
16 January 1998" On Amending Law of Ukraine " On  the State Regulation of Import of Agricultural
Produce", seasonal import duties are levied annually.  Such duties are fixed as a double amount of
preferential import duty rates for the following Group categories of the Foreign Trade Nomenclature:
07.01-07.08, 08.06.10,08.07.10, 08.08.10,08.08.20, 08.09.10000, 08.09.20, 10.01-10.05,10.08,12.06-12..08,12.10, 12.12.91,12.12.92, 12.143, 12.14.  They operate only during the period of
harvesting and storage of similar domestic produce. According to Article 6 of the above Law, must
equal or exceed 30 per cent.
The seasonal duty is established for a term not shorter than 60 and no longer than
120 consecutive calendar days. The Cabinet of Ministers establishes the periods of application forseasonal taxes on agricultural produce and publicizes them 45 days prior to implementation.
Ukraine intends to apply seasonal taxes within the limits of its tariff bindings.
Question 25.
If Ukraine intends to apply seasonal tariffs , WTO Members will expect transparency and
predictability.  Will Ukraine commit itself to the following measures:
- the regular publication of all relevant information on the duration of the seasons, the
tariffs that will apply during those seasons and how the seasonal tariffs will operate;
- the publication of all such information allowing no less than 180 days advance notice
before application;
- meeting all other relevant requirements of Article X of the GATT 1994.
Answer:
The Cabinet of Ministers of Ukraine intends to publish information on seasonal duties
45 days before their coming into force. Ukraine will adhere to the requirements of GATT Article XI
(referred to as Article X in the Question, probably in error) and, where necessary, shall take safeguard
measures in compliance with the provisions of the Agreement on Safeguards.
Corporate Profit Tax
Question 26.
Is the corporate tax described in WT/ACC/UKR/32 levied at the same rate for domestic and
foreign entities?  Are foreign entities eligible for the corporate profit tax exemptions described
in this document.  For example, would a foreign construction or design firm be exempted from
the tax if it built one of the types of projects for which tax exemptions are granted?WT/ACC/UKR/50
Page 18
Answer:
This question may have been formulated as a result of a conceptual misunderstanding due to
an inadequate translation of the previous answer. In order to conduct business within Ukraine, a
corporation (or entity) must be registered as a "resident" in Ukraine.  In addition to the acquisition of aUkrainian legal personality, such corporation also becomes subject to Ukrainian corporate profit tax,
and all incidents of and all exemptions from such tax become applicable to it in the same manner and
to the same extent as to domestic corporations.
Foreign corporations are not permitted to work within Ukraine unless they comply with the
appropriate registration procedures.
(e) Quantitative import restrictions
Question 27.Quantitative import restrictions (such as bans, quotas) cannot be applied on a seasonal basis or
any other basis.  Are we correct in assuming that Ukraine will not apply quantitative
restrictions on the import of any product?  (The  "Law on the State Regulation of Agricultural
Produce" appears to introduce quotas contrary to Article XI of the GATT 1994.)
Answer:
After its accession to WTO Ukraine will comply with the requirements of Article XI
GATT 1994 and, if necessary, will introduce safeguard measures in accordance with provisions of the
Agreement on Agriculture and the Agreement on Safeguards.
(f) Import licensing procedures
We would like to thank Ukraine for the clarification of the information previously provided on
the import licensing fee and confirmation that indicative prices do not play a role in the
licensing process.
Question 28.We note from the reply to question 20 of document WT/ACC/UKR/41 that Ukraine has never
fixed indicative prices for the goods listed  (pesticides and herbicides, pharmaceutical
preparations, cosmetic preparations and personal hygiene products, and veterinary
preparations).  We would welcome Ukraine's assura nce that it will not fix indicative prices for
any product subject to import licensing in the future.  Can Ukraine provide such an assurance?
Answer:
Ukraine has never fixed indicative prices for imported goods. Prices are fixed only for exports
from Ukraine to prevent the occurrences of dumping and to avoid anti-dumping charges against
Ukrainian goods.
Question 29.
The intent of question 19 of document WT/ACC/UKR/41 is to clarify the role of the Chambers
of Commerce and Industry in import licensing.  The reply addresses their legal status, and their
role in certifying the Ukrainian origin of good s.  However, the response does not address theWT/ACC/UKR/50
Page 19
role of the Chambers of Commerce and Industry in import licensing.  Could Ukraine provide
this information?
Answer:
We apologize that this and the subsequent question may be the result of inadequate
translations.
The Chamber of Commerce and Trade has nothing to do with licenses.  In addition to purely
promotional or representational functions, it has developed an expertise in the determination of the
proper classifications for goods under the Commodity Nomenclature.  It offers this service to foreign
pharmaceutical and related products which have ten or eleven digit classifications while Ukraine still
retains a nine digit classification system.  The Chamber of Commerce and Trade experts convert the
ten and eleven digit classifications to their nine digit equivalents. They issue certificates which are
valid for all shipments of such products.  The service is voluntary. It helps to promote international
trade.
Question 30.
WT/ACC/UKR/41 reply 18 section 2.6 confirms that  one of the documents needed to obtain an
import licence is a "product examination act issued by the Chamber of Trade and Commerce,
or its regional division, with the product's code specified in accordance with the CN FEA".
Could Ukraine please explain the purpose of the "product examination act"?  Why is this actnecessary for import licensing?  What is the role of the Chambers of Commerce and Industry in
import licensing?
Answer:
See the answer to question 29.
(h) Customs valuation
Question 31.
How would the Ukrainian authorities like to improve the system of the determination of the
customs value?  The category of "minimal customs value", applied with reference to alcoholic
beverages and beer, according to Resolution of the Council of Ministers No. 1433 dated
7 December 1996 is, in our view, inconsistent with Article 7.2(f) of the Agreement onImplementation of Article VII of the GATT 1994.
Answer:
Concerning the desire of the Ukraine customs authorities to improve its customs valuation
system we would like to report the development of a Customs Valuation Procedure, which is an
integral part of the new draft Customs Code of Ukraine. It is based on the WTO Agreement onImplementation of Article VII of the General Agreement on Trade and Tariffs of 1994.
The term "minimal customs value" has nothing to do with customs or tariffs. It represents the
minimal value used for the purposes of calculating value-added and excise taxes.  The word
"customs" is used for lack of an appropriate word to describe the taxable value of the goods subject to
such taxes.  Therefore Article VII of GATT is not affected by this activity.WT/ACC/UKR/50
Page 20
(l) Rules of origin
Question 32.
Please provide information on the system of certif icates of origin of Ukrainian products as well
as the rules of origin applied in the Ukra inian preferential trade with the CIS states.
Answer:
The system of certificates of origin within the trade among the CIS states was agreed upon by
a Decision of the Heads of the CIS States on September 24, 1993. It is set out in the Rules to
Determine the Country of Origin of Goods bearing the same date as the Decision.
According to the rules:
- "a country of origin of goods is the country where the goods are fully produced or where they
undergo sufficient reprocessing;
- "sufficient reprocessing" takes place where the processing of the goods is performed whereby
they acquire their distinct character;
- the following goods are deemed to be fully produced in a country:
(i) minerals, extracted in the territory or terr itorial waters or from the continental shelf or
the bottom of the sea which the country has exclusive right to exploit;
(ii) plant products produced, grown and collected on its territory;
(iii) live animals born and grown in the country;(iv) products obtained from animals grown on its territory;
(v) sea products obtained by hunting or fishing;
(vi) sea products obtained and/or produced in the open ocean by ships owned or chartered
by the country;
(vii) secondary raw materials and waste that have formed as a result of production and
other operations carried out in the particular country;
(viii) high technology products, obtained in th e open space or aboard space ships owned or
leased by the particular country;
(ix) goods produced in the country exclusively from goods described above.
Certificates of origin are issued by the appropriate agencies of the respective countries. Such
certificates must contain full description of the goods, their country of origin, their quantity and
weight, their means and route of shipment, and the particulars of the exporter and importer.  The
Rules also state that they apply only if the transactions, subject to the necessary transit, takes place
between residents of the CIS countries.WT/ACC/UKR/50
Page 21
Question 33.
According to document WT/ACC/UKR/23 dated 6 May 1996 "Processing in the country is
considered sufficient, if:  the declared goods a re classified differently from the materials or
products originated in third countries and used in  their production.  (In practice it means that it
is necessary to change one of the first four figu res in the HS code of the commodity.)".  Could
the Ukrainian delegation explain if the phrase "in practice" means that there is a possibility ofexception to that rule?
Answer:
According to Article 18 of the Law of Ukraine "On the Unified Customs Tariff" processing of
goods in a particular country shall be considered as taking place in the following cases:
- if declared goods are classified in the goods position different from the "materials or products
from other countries" which are used for their production;
- if the percentage of the added value amounts to not less than 50 per cent of the value of the
declared goods.
In the application of the above article there can be situations where the tariff position is not
changed but the added value amounts to not less than 50 per cent of the value of the declared goods.
Processing of goods in the particular country may be considered as taking place in such
circumstances.
(o) Safeguard regime
Question 34.
Concerning the new law "On Procedures for th e Application of Safeguard Measures Pursuant
to the Principles and Disciplines of the General Agreement on Trade and Tariffs (GATT)/World
Trade Organization":
In this law, Ukraine outlines provisions for applying safeguard measures.  It is unclear from the
cover note if agricultural products are covered by this law.  Are agricultural products covered
by this law?
Answer:
The Decree of the President No.478/96 of 27 July 1996 "On the Order of Application of
Goods Import Restriction According to the Rules and Directives of GATT/WTO (referred to in the
Question as the Decree of the President "On Procedures for the Application of Safeguard Measures,
Pursuant to the Principles and Disciplines of the General Agreement on Tariffs and Trade (GATT)/
World Trade Organization (WTO)") does not apply to agricultural produce. It covers manufactured
goods only.
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards
Question 35.
Please describe progress made in the implementation of Decree No. 244 of 17 March 1997.WT/ACC/UKR/50
Page 22
Answer:
A programme for the Development of a Set of Methodological Documents for National
Certification and Accreditation Systems has been introduced and is being implemented in order to
facilitate the execution of the Resolution of the Cabinet of Ministers No.244, of 19 March 1997, "On
Measures for Gradual Introduction in Ukraine of European Union Directives, Sanitary, Ecological,
Veterinary and Phytosanitary Rules and International and European Standards" made pursuant to theLaw of Ukraine "On the Quality and Safety of Food Products and Raw Food Material" The
Resolution came into effect on 24 January 1998. Ukraine has already introduced international
standards ISO 9000 and ISO 14000, and intends to implement European Standards EN 45000 before
the end of 1998.
Question 36.
According to Ukraine's response to question 12 of WT/ACC/UKR/23/Add.1, Ukraine has
endorsed a policy of harmonizing its national standards with international standards and hastaken a leading role in the EuroAsiatic Council on Standardization (EASC) to harmonize old
GOST's with international standards.  However,  it appears that Ukraine has replaced many of
its national standards with regional European standards (CEN and CENELEC) when it passed
a resolution importing EU directives into Ukraine's body of national regulations.
Please explain the objective and purpose of this resolution?Does this resolution replace Ukraine's national standards with CEN and CENELEC?
Please identify the areas (e.g. telecommun ications equipment) where Ukraine's national
standards are based on CEN and CENELEC.  Please identify the areas where Ukraine's
national standards are based on some other standards, and what are those standards?
Answer:
Ukraine will implement only those CEN and CENELEC standards that have been developed
in accordance with international standards.
Question 37.
Does Derzhstandart currently accept test results from foreign test laboratories?
Answer:
Recognition of the protocols of examination of foreign testing laboratories is carried out in
accordance with terms stipulated in specific agreements on cooperation and mutual recognition.
Since that Ukraine is a member of IECEE (CB), verification of protocols of examination of electric
devises must be performed in accordance wi th rules operating within the IECEE system.
See also the answer to question 46.
Question 38.
Under what conditions does or would Derzhstandart accept test results from foreign test
laboratories?  For instance, can a test laboratory  accredited by Derzhstandart in Ukraine enter
into an agency or representative testing arrangement with a foreign test laboratory to conduct
equivalent testing to Ukrainian requirements?WT/ACC/UKR/50
Page 23
Answer:
By signing the Decree No. 942/97 of 9 February 1997, the President of Ukraine established
the National Council on Quality Issues.  He approved  the "Statute of the National Council on Quality
Issues", and appointed the Council's membership.  Organizational support for the Council is provided
by Derzhstandard.
One of the objectives of the National Council on Quality Issues is to analyze and prepare
proposals for the harmonization of national laws with international and European standards.  The
Council reviews proposals concerning improvements in the regulatory and technical foundation of the
quality-control system to ensure quality, safety and competitiveness of Ukrainian products.  It also
takes measures aimed at the development of technical regulations of national standardization systems,
as well as the testing, control, codification and classification of technical, economical and social
information.
Question 39.
In the answer to question 4 of WT/ACC/UKR/23/Add.1, Ukraine indicated that the National
Council on Quality and the National Council on Accreditation are being formed.
Have these two councils been established and what are their respective mandate and scope of
standards development activities?
How do they coordinate standardization activiti es on the international,  national, regional and
local levels?
Answer:
One council has been formed to deal with quality issues, including accreditation. For further
details, see the answer to question 38.
Question 40.
In response to question 12 of document WT/ACC/UKR/23/Add.1 of 21 March 1997, Ukraine
noted that 60 per cent (approximately 965) of  the 1,608 State National Standards, and 4,000 of
the 20,000 former Soviet standards in force in Uk raine had been harmonized with international
standards.
We would be grateful for confirmation as to wh ether Ukraine plans to have all these standards
harmonized with int ernational standards.
If so, we would appreciate greater details of  the planned timetable leading towards complete
harmonization and the final date by which such harmonization should be completed.
Answer:
Implementation of standards harmonized with international and European standards will be
carried out during the period 1998-2000 in accordance with the plan approved by the Resolution of
the Cabinet of Ministers No. 244, dated 19 March 1997.
See also answer to question 35.WT/ACC/UKR/50
Page 24
Question 41.
At the previous Working Party meeting Ukraine said that it would apply the provisions of
Article 6 of the TBT Agreement in relation to recognition of other countries certificates of
conformity.  Where do matters currently stand in relation to this undertaking?  Where such
recognition is not provided we would appreciate details of Ukraine's plans to recognize other
countries certificates of conformity.
Answer:
Mutual recognition of the results of conformity assessments will be carried out in accordance
with Article 6 of the TBT Agreement on the basis of and pursuant to the terms of bilateral cooperation
agreements.  By 1 March 1998, 38 agreements have been signed with 28 countries, and currently
negotiations are being conducted with more than 30 other countries.
Question 42.
It has been stated by Ukraine that one of the reasons for maintaining very stringent and
onerous pre-market certification requirements is the lack of a product liability law and other
auxiliary legislation that allows control bodies to intervene post-market.
When will Ukraine introduce a product liability la w and any other auxiliary legislation that will
permit a systemic change from predominan tly mandatory pre-market certification to
manufacturers' declaration combined with post-market surveillance?
The Government Decree No. 30 of 8 April 1993 and Presidential Decree No. 950/96 of
16 October 1996 seem to give both Derzhstandart and the State Committee for the Protection of
Consumer Rights wide ranging powers to invest igate any economic entity , to intervene at the
stage of manufacturing, importation, storage, transportation or sale, and to impose fines or take
other measures including the closure of the econo mic entity.  It would seem that the necessary
enforcement instruments are available, which would enable a change from pre-market to
post-market control.  Could Ukraine please co mment on if the above-m entioned decree No. 30 is
correct, and if this is the case, why it is not possible to already turn now to post-market
surveillance.
Answer:
A Law "On the Responsibility of Producers and Distributors for the Production and/or
Distribution of Substandard and Hazardous Products"  is being drafted.  It takes into account the
requirements of EU 85/374 IEEC Direc tive.  The result will be as follows:
(i) Upon the above law taking effect Ukraine plans to introduce a modular principle for an
assessment of compliance with its requirements.  This approach will be based on producer/distributordeclarations of conformity which will enable the compulsory pre-market certification procedure to be
replaced by an effectively functioning system of market control.  Standards based on ISO/IEC 22 and
EN 45014 have already been adopted.
(ii) Article 4(2) of the Decree of the Cabinet of Ministers No.30-93 of 8 April 1993 "On
Government Supervision of Compliance with Standards and the Rules for Their Enforcement in the
Event of Non-Compliance" does not authorize post-market control or the taking of any of the
measures at the distribution stage mentioned in the above question.WT/ACC/UKR/50
Page 25
Question 43.
Which practical measures are being taken in Ukraine presently to align with the requirements
of the TBT Agreement, as regards:
- the principle of transparency;  i.e. establishment of the inquiry point, prior notification
procedures and a legislative procedure that allows for consultations with industry and
other concerned parties and for comments to be taken aboard after such consultations?
- securing the principles of non-discrimination and national treatment in product
legislation, standards, conformity assessment procedures (including fee structures and
standard processing times), labelling requirements etc?
- the use and acceptance of international standards?
- the principles of proportionality and least trade restrictiveness;  i.e. by moving from
pre-market certification for products normally not subject to such requirements
(foodstuffs, electronics, ceramic tiles) to manufacturers' declaration combined withpost-market surveillance?
Answer:
Ukraine is taking the following measures to comply with the TBT Agreement:
(a) An inquiry point is being established to comply with Article 10 of the TBT Agreement.  The
current stage of this project, carried out under the auspices of a TACIS programme, involves theacquisition and installation of equipment.  In addition all necessary information about standard and
certification can be obtained at the present time at the National Automated Registry of Standards of
the Standardization and Certification Resear ch Institute (Address: 174 Gorkogo St., Kiev,
Ukraine 252006, tel.: (044) 268-84-66, fax.:(044) 268-70-60);
(b) The normative documents of the state certification system (UkrSEPRO) are based on the
guidelines set by international and European standardization organizations.  They guarantee national
treatment for imported goods as required by Articles 5-9 of the TBT Agreement;
(c) As of 1 February 1998, Ukraine has established 1957 state (national) standards with more
than 60 per cent of them being harmonized with international standards;
(d) The pre-market certification system is intended to be replaced by a system based on producer
declarations  after the enactment of the Law "On the Responsibility of Producers and Distributors for
the Production and/or Distribution of Substandard and Hazardous Products".  The law is being
drafted.
Question 44.
On 1 January 1997 new labelling requirements fo r foodstuffs entered in to force in Ukraine.
These requirements do not correspond enti rely to international requirements (Codex
Alimentarius).
Has Derzhstandart produced the necessary standards or any other documentation (guidelines
etc.) that specifies in detail wh at is required for different produc ers?  If not, when will such
documents be available to the producers?WT/ACC/UKR/50
Page 26
Could Ukraine please provide detailed information on the draft Law "On changes and
amendments to the law on State regulation of production and trade of ethyl, cognac, fruit
spirits, alcohol and tobacco products" and its relation with the labelling regulation?
Could Ukraine consider accepting a translation of an already existing label - based on and
fulfilling all Codex Alimentarius requirements - into Ukrainian and then the product would
automatically be considered as fulfilling the req uirements for entering the Ukrainian market (as
the Russian Federation has done in the same case)?
Answer:
(a) The Decree of the Derzhstandart of Ukraine No.499, of 27 November 1996 as amended and
added by Decree of the Derzhstandart of Ukraine No.268, of 17 May 1997 approves standards for
food products that have to undergo obligatory certification in Ukraine.
(b) The Law of Ukraine "On the State Regulatio n of Import of Production and Trade of Ethyl
Alcohol, Liquors and Tobacco Products" regulates production, use and trade of such goods.  TheArticle 11 of this Law, when first enacted, did not regulate the warning of all ethyl alcohol, liquors
and tobacco products. An amendment of Article II now sets out clear requirements.
(c) Acceptance of translated labels is possible if they contain the relevant information.  On Codex
Alimentarius, see the answer to question 56.
Question 45.
Ukraine operates mandatory pre-market certification for processed foodstuffs.  What measures
have been taken to allow a move from pre-ma rket to post-market control in this area?
Answer:
Upon the enactment of the Law "On Responsibili ty of Producers and Distributors for the
Production and/or Distribution of Substandard and Hazardous Products" a system of post-marketcontrols is planned to replace the present pre-market control system.
See also the answer to question 42.
Question 46.
The present onerous certification requirements for electronics (computer parts etc.) have been
motivated by Ukraine by reference to "natio nal differences and characteristics".  What
"national differences" motivate the use of pre-ma rket certification involving products model
certification as well as individual consignment approval and quality system certification for
products which are normally not subject to such onerous procedures?
Answer:
Ukraine’s specific requirements for the certification of electronic devices are based on the
special conditions of the country’s electric power system which requires interference by electronic
devices to be within established limits.
See also the answer to question 37.WT/ACC/UKR/50
Page 27
Question 47.
What are ceramic tiles subject to mandatory pre-market certification which is contrary to
international practice where manufacturer's declaration suffices?
What health and safety risks are the consumers being protected against?Decree No. 244 also covers building material, so when will ceramic tiles be subject to
requirements which are used in the European Union and internationally?
Answer:
As soon as the Law "On Responsibility of Producers and Distributors for the Production
and/or Distribution of Substandard and Hazardous Pr oducts" is enacted and put into effect, a modular
principle for the assessment of conformity will be introduced, and the list of products subject to
obligatory certification in Ukraine will be revise d to conform with EC Directive No.93/465 taking
into account the necessary link assessment techniques.
See also the answer to question 42.
Question 48.
When will Ukraine join the 1958 UN-ECE Agr eement, and how is work on alignment
proceeding?
Can Ukraine confirm that joining the UN-ECE Agreement means that:
- type-approval certificates will be issued for the whole lifespan of a model and not just
for three years as presently;
- the UN-ECE standards will be introduced and accepted;- it will abolish the mandatory plant visits to  each and every plant occurring several times
a year?
Answer:
The Draft Law "On Ukraine’s Accession to the UN-ECE Agreement of 1958" has been
approved by the Derzhstandard, the Ministry of Transportation, and other interested agencies.  The
Ministry of Foreign Affairs is preparing it for submission to the Supreme Rada.  In addition, the
Ministry of Industrial Policy and the Ministry of Transportation have approved a list of UN-ECE
standards that will become effective in Ukraine in addition to the existing national standards.
The situation concerning the specific issues raised above is as follows:
(a) the period for which certificates of conformity are issued will depend on the certification
scheme. For certification pursuant to the ISO 9000 standard, certificates will be issued for three years
on condition of the annual examination of the effectiveness of operation of the quality control system;
(b) 15 UN-ECE standards are already in effect in Ukraine in the form of national standards. 41
regulatory documents contain references to UN-ECE standards.  The remaining UN-ECE standards
will be introduced after the enactment of the above draft law;
(c) the statement about the frequent visiting of factory sites to perform examinations is
groundless. Over the three years, during which Ukraine has been applying compulsory certification ofWT/ACC/UKR/50
Page 28
transport vehicles, production facilities of almost all major manufacturers of such products (Volvo,
Daimler-Benz, Ford, Opel and others) have been visited only once. Examination of production
facilities is carried out to ensure that the enterprises are capable of maintaining a standard production
processes and an even quality of products that meets the requirements of Ukrainian legislation.
Question 49.
Presently only legal entities require type ap proval certificates.  When will the present
discrimination between legal entities and private importers be abolished.
Answer:
Legal entities include private importers. It is a term used to describe everyone engaged in
entrepreneurial activity.
Question 50.
The State Committee of Ukraine for Standardization submitted a list of measures for the
implementation of international and European  standards on the regional level (the CIS
countries) for consideration of the eleventh session of the IC.  One measure includes the
"development of a programme for the direct im plementation of international and European
standards as interstate for reciprocally shipped products".  The other measure requires
developing a programme on inter-laboratory comparative testing of reciprocally shipped
products subject to compulsory certification proceeding from the generally acceptedinternational practice of carrying out such testing to ensure a high level of reliability of the
testing results and the safety of the products fo r people and the environment.  The law entitled
"Procedures for Recognition of Results of Imported Goods" seems to refer to this type of
treatment.
We are concerned about the concept of "reciproca lly shipped" products.  What exactly does this
mean?  Does this mean that international sta ndards will only be used when products are
reciprocally shipped?  Ukraine should be pr epared on accession to apply international
standards to all imported products, whether or not reciprocally shipped.  (WT/ACC/UKR/47)
Answer:
Ukraine will be ready to apply international standards to all imported goods (imported either
on the reciprocal basis or not) upon its accession to WTO.
(c) Sanitary and phytosanitary measures
Question 51.
In document WT/ACC/UKR/23, Ukraine submitted its reply to the TBT questionnaire, but that
no similar document on SPS issues has been developed.  We would appreciate a similar
document on sanitary and phytosanitary measures, to facilitate evaluation of Ukraine's SPS
regime.
Answer:
We refer you to documents WT/ACC/UKR/45  and WT/ACC/UKR/46.  However, we are
happy to describe the SPS regime of Ukraine again. It is as follows:WT/ACC/UKR/50
Page 29
According to the Resolution of the Cabinet of Ministers No. 244 of 19 March 1997, the
Ministry of Health of Ukraine conducts persistent and zealous work on gradual introduction in
Ukraine of the measures provided for in the European Union Directives on Sanitary, Phytosanitary,
Veterinary and Ecological Rules.
The sanitary and phytosanitary measures are introduced and implemented in Ukraine in
accordance with the Law of Ukraine "On Safeguarding Sanitary and Epidemic Safety of thePopulation".  They apply to all stages of de velopment, implementation, introduction, production,
exporting, importing, transportation, distribution, application and use (making use of and
consumption) of products, as well as, if it is necessary, to their reprocessing, utilization, and
destruction.
The specific sanitary legislation and sanitary rules of Ukraine may be found in, approximately
2000 normative documents, as well as in related instructional and procedural materials. Many of the
measures were developed before the collapse of the former Soviet Union.  At present the mostimportant of them are edited and amended as they are being harmonized with the relevant European
legislation.  They are published by the Ministry of Health of Ukraine as "The Collection of
Significant Official Documents on Sanitary and Anti-Epidemic Issues" (an official edition consisting
of nine volumes).  This collection of documents is public and everyone can have access to it.
We must point out that the harmonization of the sanitary legislation in general and the
detailed measures in particular to achieve full compliance with the WTO phytosanitary and sanitary
requirements need time. The transitional period of adaptation is expected to be completed not later
than the year 2001 and perhaps even earlier.  The need for a transitional period is predicated by the
necessity of taking appropriate measures, including careful scientific and legal drafting work, required
by the "Agreement on Adhering to Sanitary and Phytosanitary Measures".  The specific requirementsinclude:
- setting up authorized missions (representatives) of the Ukrainian Ministry of Health in the
respective international organizations and in the committees  of the Code Alimentarius
Commission, and to participate within the fram ework of the International Plant Protection
Convention (IPPC), etc. The agreements provide for an obligation to enter the Committees ofthe Code Alimentarius on Food Additions, control of certification procedures, export-import
transactions, transportation, the hygiene of food products, methods of analysis of the remains
of pesticides and of veterinary preparations in products, etc.;
- studying the complex accumulation of existing international rules and regulations on sanitary
and phytosanitary measures;
- review and harmonization of domestic sanitary and phytosanitary measures, hygienic rules,
regulations and standards in order to bring them in line with international standards and
requirements, comparing the domestic regime with the regime of foreign countries;
- setting up a prior publication service and the National Inquiry Point at the Medvedev
Ecohygiene and Toxicology Scientific and Research Institute.  The objective will be to make
information available on sanitary measures already taking place in Ukraine, as well as on the
national system of verification and control and on risk estimating procedures. Ukraine plansto do this in 1998;
- increase publishing activity of the Ministry of Health of Ukraine.  The objective is to
publicize the sanitary rules and regulations and other documents of sanitary legislation in all
effort to promote principles of transparency as regards the sanitary and phytosanitary
measures in Ukraine.WT/ACC/UKR/50
Page 30
These and other important steps concerning the sanitary and phytosanitary conditions of
Ukraine’s accession to the WTO are controlled by the Ministry of Health of Ukraine.
The Ministry deems it necessary to inform the trade partners of Ukraine that during the period
of transformation Ukraine will try not to impede trade transactions through sanitary and phytosanitary
measures provided that the trading activities do not present a threat to the sanitary and
epidemiological safety of the people of Ukraine.
All new products undergo an obligatory state sanitary and hygienic expertise. Thereafter, the
expertise body issues its certificate which is entered into the National Register of Food Products. Such
procedure takes up to 21 days.  The validity term of a certificate for a newly imported product issued
by the State Sanitary and Hygienic Expertise is determined in each case separately.  However it may
not exceed five years.
Ukraine uses uniform hygienic standards for the testing and evaluation of the safety of
products.  The Ministry of Health of Ukraine does not require an additional sanitary and hygienicexpertise or examination of products exported by the foreign or international organizations recognized
by Ukraine. It also is prepared to activate bila teral arrangements with world recognized expert bodies
and organizations.
The Ministry guarantees that the criteria for safety of products, used to conduct sanitary and
hygienic expertise, are transparent and available to all trade partners.
A procedure for the evaluation of the adequacy of the procedures, certificates and declarations
of its trading partners has been developed by Ukraine.  Recognition of such procedures, certificates
and declarations is achieved through bilateral negotiations and familiarization with the laws and
enforcement systems of the trading partners, as well as their sanitary safety and quality requirements.
Question 52.
In reviewing Ukraine's replies in document WT/ACC/UKR/25, we note that, as with technical
barriers to trade, Ukraine has not yet implemented a system for prior publication for public
comment or an inquiry point.  These are two fundamental aspects of the SPS Agreement that
should be in place prior to accession.
Has Ukraine made any progress in establishing a system of prior comment for sanitary and
phytosanitary measures?
Has Ukraine designated an inquiry point for SPS i ssues yet?  If so, what is the inquiry point?
Answer:
Ukraine is establishing this year a prior publication service and a national inquiry point at the
Medvedev Ecohygiene and Toxicology Scientific and Research Institute attached to the Ministry ofHealth of Ukraine.  The objective of the point will be to make available to the WTO Member states
information about the implementation of WTO measures  in Ukraine.  It also will provide information
about inspections and controls, as well as about risk estimating procedures, as required by the SPS
agreement.
At the present information on SPS issues may be obtained from the Main Sanitary
Epidemiological Department of the Ministry of Health of Ukraine, 7, Gorkogo Str., 252021, Kyiv.WT/ACC/UKR/50
Page 31
See also the answer to question 51.
Question 53.
In response to question 40 in document WT/ACC/ UKR/41, Ukraine states that "After obtaining
the hygiene conclusion on a type of product, ce rtification or the sanitary and hygiene expertise
of separate consignments of the product shall be conducted and the permission for the sale of
this product in the specific regions shall be i ssued".  This would seem to require that each
shipment must be inspected even aft er a hygiene certificate has been granted.
What is the purpose of having a hygiene certificate valid between one to three years if all
shipments must be inspected in any case?
Does Ukraine have legislation in place which manda tes the use of hygiene certificates, or is this
regulation derived from Ministerial authority conferred by other laws?
If specific legislation exists, we would appreciate an opportunity to review it.  We would also
like an explanation of how the hygiene certific ation differs from the regular sanitary and
phytosanitary certification.
Answer:
According to the Law of Ukraine "On the Quality and Safety of Food Products and Raw Food
Materials", where a new product undergoes the state sanitary and hygiene expertise, separate
shipments of that product are not required to undergo separate expertise
The issue of state sanitary and hygienic expert ise is provided for in the Law of Ukraine "On
Providing Sanitary and Epidemic Safety of the Population", the Law of Ukraine "On the Quality and
Safety of Food Products and Raw Food Materials", and the Law of Ukraine "On the State Regulation
of the Import of Agricultural Produce". Within the scope of these laws more detailed regulations are
issued by the Ministry of Health of Ukraine.
English translations of the Law of Ukraine "On the State Regulation of the Import of
Agricultural Produce" and the Law of Ukraine "On Providing Sanitary and Epidemic Safety of the
Population" were made available in November 1997 (see WT/ACC/UKR/44/Add.1).  Text of the Law
of Ukraine "On the Quality and Safety of Food Products and Raw Food Materials" in English
translation is submitted together with this document (See WT/ACC/UKR/51)
Question 54.
We are puzzled as to why hygienic certificates  are required given that additional inspections
also are necessary.  This would appear to be an additional step in the certification process and it
is unclear if they provide any more assurance than a regular sanitary permit.  We believe that
this process can be streamlined.
The response to question 2 in document WT/ACC/ UKR/41 states that a procedure to recognize
its trading partners' conformity assessment procedures, sanitary or phytosanitary certifications
and declarations or conformance is implemented through bilateral negotiations.
What is the status of these negotiations?WT/ACC/UKR/50
Page 32
This implies that SPS certificates are only recogn ized from countries where there is a bilateral
agreement.  This does not respect the concept of equivalence set forth in the SPS Agreement.Can Ukraine give a commitment that it will accept these certificates from all WTO Member
countries - not just those in which a bilateral agreement has been signed - when Ukraine accedes
to the WTO?
Will Ukraine commit in its protocol text, that upon accession, it will recognize conformity
assessment procedures, sanitary or phytosanitary certifications and declarations of
conformance of other WTO Members?
Answer:
Please be advised that the State Veterinary Medicine Department of the Ukrainian Ministry of
Agro-industrial Complex is ready to consider within its competence the issue of veterinary certificaterecognition of all WTO Members, and not only of those with whom bilateral agreements on
cooperation in the field of veterinary medicine were signed.  It can be done, if the epizootic situationin a producer's country is satisfactory and veterinary requirements of Ukraine are fulfilled.
Phytosanitary Service of Ukraine carries out inspections and phytosanitary certification in
accordance with the standards of International Plant Protection Convention (IPPC) whoserepresentative in Europe is the European and Mediterranean Plant Protection Organization.  In cases
not covered by IPPC, Ukraine solves the issue by entering into bilateral agreements.
Therefore, Ukraine has recognized in the past  and continues to recognize today phytosanitary
certificates and relevant inspection procedures of other countries.
Question 55.
We note Ukraine's response to question 2 in document WT/ACC/UKR/41 that it was reviewing
regulations regarding procedures to recognize trading partners' conformity assessmentprocedures, sanitary or phytosanitary certificatio ns, or declarations of conformance.  Has this
review been completed?  What arrangements does Ukraine intend to put in place for the
recognition of the conformity assessment procedures, sanitary or phytosanitary certifications,
or declarations of conformance of its trading partners?
The revision of the rules dealing with the procedure for recognition of the conformity
assessment procedures of trading partners, their sanitary of phytosanitary certifications, and theirdeclarations of conformance is not completed yet.  However such procedures, certifications and
declarations are recognized in the international practice where they conform with internationalstandards.
Question 56.
With regard to questions 47 and 48 of document WT/ACC/UKR/41, can Ukraine clarify the
present status of its membership of the international bodies which are recognized under the SPSAgreement, notable the Codex Alimentarius Commis sion, the International Office of Epizootics,
and the International Plant Protection Convention?
Answer:
Ukraine intends to become a member of the Codex Alimentarius Commission in 1998. The
Resolution of the Cabinet of Ministers of Ukraine establishes a National Committee on Food Products
Description relating to Codex Alimentarius.  The committee includes the representatives of theWT/ACC/UKR/50
Page 33
Ministry of Agro-industrial Complex, Derzhstandard and the Ministry of Health of Ukraine. The
committee’s mission is to promote Ukraine’s responsibilities as a member of the Codex Alimentarius
Commission.
Question 57.
In response to question 48 in document WT/ACC/UKR/41, Ukraine states that it has developed
rules on importing, testing, transportation, preser vation, sales and application of herbicides and
pesticides which are based on the basic provisions of the convention on Plant Protection.
However, we are still unclear whether Ukrain e intends to ratify the International Plant
Protection Convention.  Does Ukraine intend to ratify the International Plant Protection
Convention?
Answer:
See the answer to question 56. 
Question 58.
With regard to the SPS standards which Uk raine is harmonizing with CIS countries
(WT/ACC/UKR/42 refers) and European Community members (WT/ACC/UKR/47 refers), we
would appreciate advice from Ukraine on the extent to which international, as distinct from
regional standards, are taken into account in th is harmonization process.  In this regard we
draw Ukraine's attention to Article 3 of the SPS Agreement.
Answer:
In the development of new sanitation standards Ukraine takes into account the relevant
international standards. If the national sanitary standards are different in any manner from the
international standards, the WTO Member States are notified.
Question 59.
We note that the list of agreements entered into  by Ukraine with a number of countries in the
field of standardization, metrology and certification (WT/ACC/UKR/42).  Can Ukraine confirm
that the arrangements under these agreements do not contain provisions which discriminate
against importers from third countries, or which would be inconsistent with the requirements of
the SPS Agreement?
Answer:
Ukraine reaffirms that bilateral agreements concluded with a number of countries on sanitary
measures do not discriminate against importers from third states.
Question 60.
Document WT/ACC/UKR/42 lists the different bilateral SPS agreements Ukraine has reached
with other countries.
We are unclear what purpose the bilateral agreements on SPS serve.  Please explain.
Ukraine's policy implies that SPS certificates are only recognized from countries where there is
a bilateral agreement.  This does not respect th e concept of equivalence set forth in the SPSWT/ACC/UKR/50
Page 34
Agreement.  We need assurance that Ukraine w ill respect certificates from all WTO Member
countries.
Answer:
The State Veterinary Medicine Department of  the Ukrainian Ministry of Agro-industrial
Complex represents Ukraine in International Office of Epizootics since 1993 and observes the
requirements of the Zoosanitary Code.  Since 1 March 1994, Ukraine is a party to the European andMediterranean Plant Protection Organization Convention of 1951, as supplemented in 1955, 1962,
1973 and 1982, which is the regional organization of the International Plant Protection Organization.
All regulating documents of the European and Mediterranean Plant Protection Organization applied
by Ukraine are based on FAO standards.
The phytosanitary certification is conducted in accordance with the International Plant
Protection Convention.
Subject to their meeting the safety standards to protect human health and life Ukraine
recognizes the sanitary certificates of all WTO Member States, where issues arise that are not settled
by the international organizations or institutions, Ukraine reaches appropriate bilateral arrangements.
Question 61.
Among the imports subject to quarantine, Ukraine quarantines agricultural machinery, soil
cultivation implements, and vehicles coming from foreign countries and regions of Ukraine witha special quarantine regime.  The legislation entitled "Special Types of Border Control:
Veterinary, Quarantine and Ecological" does not mention quarantine for anything other than
plant and animal products.  Can Ukraine co nfirm that the quarantine requirements for
machinery refer only to products that have been  used and that this practice does not refer to
new, never-used equipment imported into Ukraine. (WT/ACC/UKR/46)
Answer:
Phytosanitary Service of Ukraine confirms the necessity to undertake phytosanitary
inspection for agricultural machinery that was in use.
Quarantine requirements are not applicable to new equipment that was never used before its import
into Ukraine.
Question 62.
Under point 6 Ukraine states that "new (food) products", "food produced from new
untraditional types of products" and "food products produced with the use of principally new
types of plants or animals" which are imported require obligatory consideration by the State
Sanitary Services.  How are the "new" domestic products treated?  As a member of the WTO,Ukraine must apply the same standards to imported and domestic products.  We seek a
commitment from Ukraine that it will apply the same certification requirements to both
domestic and imported products.  (WT/ACC/UKR/46)
Answer:
All new products, imported into Ukraine for the first time, must undergo obligatory state
sanitary and hygiene expertise. Upon the conclusion of the expertise the state sanitary and hygiene
expertise body issues its certificate. The latter is entered into the National Register of Food Products.WT/ACC/UKR/50
Page 35
The sanitary standards for imported goods are practically the same as those applied to
domestic products.
Question 63.
Under point 8, Ukraine notes that "substances used in industry or agriculture which are new,
not used in the production process before, raw materials which have direct contact with peopleor product components that may effect people's health" which are imported require obligatory
consideration by the State Sanitary Service.  Do es this include the packaging in which processed
products come (i.e. cans, boxes, plastic)?  (WT/ACC/UKR/46)
Answer:
Yes, the requirements of obligatory sanitary and hygiene expertise apply to all products that
may either directly or indirectly affect human health.  This includes all accompanying materials,
including packaging, raw materials, and food additives.
Question 64.
We welcome the explanation of the arrangements which are in place for developing hygiene and
safety standards in Ukraine (WT/ACC/UKR/46).  Can Ukraine explain the criteria used for
evaluating the suitability of existing international standards?
Answer:
All Ukrainian standards of hygiene and safety are based on criteria of health safety which
have a foundation in hygienic science.
Ukraine is working on the harmonisation of national hygiene and safety standards with the
international standards.  The purpose of the work is to eliminate excessive impediments in trade and
to provide for sanitary and epidemiological safety of the citizens.  The same criteria are used to
evaluate the applicability of international standards in Ukraine.
Ukraine reaffirms that after it accedes to the WTO, the provisions of the SPS Agreement will
be adhered to including the recognition of the sanitary certificates of Ukraine’s trading partners.
Question 65.
In this regard, we note that Ukraine does not use "sanitary certificates" as official documents.
Could Ukraine confirm that upon accession to the WTO processes will be put in place torecognize the sanitary certificates of its trading partners and that arrangements will be in place
for members to demonstrate, where appropriat e, the equivalence of specified sanitary or
phytosanitary measures in accordance with Article 4 of the SPS Agreement.
Answer:
See the answer to question 64.
Question 66.
We have heard of problems with the recognition of trading partners certification by veterinary
officials despite the certification being deemed  sufficient under Ukrainian legislation.  IsWT/ACC/UKR/50
Page 36
Ukraine prepared to take the necessary steps to  address the apparent inconsistency between its
laws and the manner in which they are being applied by veterinary officials?
Answer:
Veterinary certificates issued by trading partners are recognized provided they meet the
veterinary requirements of Ukraine and are in confor mity with epizootical safety requirements of the
producer country.
Question 67.
We would appreciate it if Ukraine could prov ide more information on the issue of plant
quarantine for imports.  Please provide a copy of the relevant laws, the list of plant quarantine
pests and diseases as well as an explanation of the rules and regulations regarding plant
quarantine for imports in Ukraine.
Answer:
The General State Inspection on Plant Quarantine of Ukraine submits as separate documents
(see WT/ACC/UKR/51):
-  Law of Ukraine "On Plant Quarantine"
-  a list of pests and diseases of plants and weeds that are quarantinable in Ukraine.
State quarantine control is conducted at border checkpoints. All imported or exported seeds
and plant products undergo such control according to the Law of Ukraine of 30 June 1993, "On PlantQuarantine" and the Resolution of the Cabinet of Ministers No.892 of 28 October 1993, "On the
Status of the State Plant Quarantine Service of Ukraine".
Article 7 of the Law provides that, as a rule, two kinds of bodies conduct such control. These
are the oblast plant quarantine inspection stations and the border checkpoints.
The sphere of their competence includes:
(a) issue of certificates for imported seeds, plants and plant products, and also for those exported
from special quarantine regime zones;
(b) quarantine inspection and laboratory expertise of imported quarantinable materials and
objects (including those that are contained in luggage, handbags or mail packages);
(c) the organization of sanitation and disinfection measures for imported quarantinable materials,
objects and vehicles;
(d) control of the activity of introductional quarantine hotbeds, state sorting divisions, hothouses
that conduct quarantine inspections of imported seeds, plants and plant materials;
(e) State control of production, storage, reprocessing, utilization and realization of seeds, plants
and plant products.
According to Article 11 of the above Law all the quarantinable materials and objects that
cross the border of Ukraine are subject to phytosanitary control.WT/ACC/UKR/50
Page 37
Quarantinable materials can be imported to Ukraine if:
- there is a phytosanitary certificate, issued by the state quarantine and plant protection
bodies of the exporter’s state;
-  there is a quarantine import permission, issued by the General Plant Quarantine State
Inspection.
The customs legalization of shipments takes place only after phytosanitary control is
concluded.
Persons violating quarantine requirements are fined. This is done by means of court
proceedings upon the submission of the appropriate findings by state phytosanitary inspectors.
Question 68.
In the "Rules of Issues of Veterinary Document s for Freight Subject to Compulsory Veterinary
Control" some exceptions to the general rules are reported.  Could Ukraine please explain the
special relationships between Crimea and Ukraine, and between Ukraine and the oblast and thecities of Kiev an Sebastopol.
Answer:
The answer to the previous question on this matter may not have been clear.  The "Rules of
Issues of Veterinary Documents for Freight Su bject to Compulsory Veterinary Control" apply
throughout Ukraine, including Crimea.  They must be observed by all veterinary medicineinstitutions, organizations and enterprises of the country without any regional distinctions or
exceptions.
Question 69.
In "Resolution 244 of 19 March 1997 on Measu res for Gradual Introduction in Ukraine of
European Union Directives, Sanitary Ecological, Veterinary and Phytosanitary Rules, andInternational and European Standards" it is stated that Ukraine intends to introduce the
European Union directives on SPS rules.  Please provide an update of the status regarding this
issue.  Has Ukraine incorporated the European Union directives in its laws yet?  Will Ukraine
incorporate all the veterinary and sanitary directives?  Does Ukraine have the intention of
incorporating European Commission Decision 97/ 534/EC of 30 July 1997 on the prohibition of
the use of material presenting risks as regards  transmissible spongiform encephalopathies?  If
this is the case, could Ukraine please provide assurance that an exemption for tallow processed
for splitting into fatty acids will be adopted.
Answer:
The Ministry of Health is introducing a Programme of Developing a Complex of Sanitary,
Sanitary-Chemical, Toxicolo-Hygienic, Phytosanitary and Veterinary Rules which complies with the
relevant EU directives. The Programme is being developed in accordance with the Resolution of the
Cabinet of Ministers of Ukraine No.244 of 19 March 1997.
Current veterinary requirements on the import of animals, meat, meat and dairy products, raw
materials of animal origin, animal feed, and biological materials comply with the requirements of the
International Zoosanitary Code. The European Comm ission Decision 97/534/EC is also taken into
consideration.WT/ACC/UKR/50
Page 38
Question 70.
Reference "Part III:  Veterinary Requirements to Importing Meat, Meat and Dairy Products
and Edible Products".  This document reports, in the last paragraph under section "3.1:
Veterinary Requirements to Importing Meat and Meat Products" that "the buyer of meat
preserves the right to involve his veterinary exp erts into selective pre-slaughtering examination
of the animals and veterinary and sanitary ex pertise of the carcasses and intestines at the
exporter's enterprises".  Does that clause apply to all countries exporting to Ukraine?  Doe
Ukraine currently recognize certain countries as h aving an equivalent sanitary system to its
own?  If not, does Ukraine have the intention in the future of recognizing certain countries as
having an equivalent sanitary system to its own?  If yes, could Ukraine provide a list of
countries it recognizes as equivalent?
Answer:
As to the last paragraph of section 3.1 of Part III of the "Veterinary Requirements to
Importing Meat and Dairy Products, and Edible Products", the requirement applies to all countries
exporting to Ukraine.
Question 71.
Reference "Part III:  Veterinary Requirements to Importing Meat, Meat and Dairy Products
and Edible Products".  In the second paragraph under section 3.3 "Veterinary Requirements toImporting Poultry Meat and Edible Eggs", Ukraine states that "it is not permitted to import
poultry, meat ... which received natural hormon al medicine, antibiotics ... during growing,
feeding or before slaughtering".  Could Ukraine please explain what the scientific basis for such
a ban is?  Does Ukraine have established maximum residue limits (MRL's) for antibiotics in
poultry (if so, please provide MRL levels)?  Could Ukraine also confirm that it does not permitthe use of antibiotics on its own territory during growth of poultry.  The veterinary
requirements for importing meat in Ukraine state that the presence of salmonella on the surface
of poultry is not permitted in imports.  What is Ukraine's tolerance level for salmonella in
meat?  Please indicate levels of tolerances for most meat types.
Answer:
The requirement imposed by the "Veterinary Requirements for Importing Poultry Meat and
Edible Eggs" prohibits the import of the meat of poultry which has received natural hormonal
treatment and antibiotics during growing, feeding or before slaughtering.
Note that pursuant to the Law of Ukraine "On Veterinary Medicine", in order to expedite the
growth of animal and poultry productivity, the use of biological stimulators, antibiotics, hormonal andother medicine which decrease internal secretion glands functions, and particularly which have
teriostatic and endrogenic influence, is prohibited. These preparations can be applied only for medical
purposes.
Medical and biological standards and the sanitary rule for raw food and food products require
that the permissible levels (in milligrams per kilo) for fresh, cooled and frozen meat and poultry shall
not exceed:
- 0.01 unit per gram for antibiotics of tetracycline group;
- 0.5 unit per gram for grisein.
Concerning hormonal preparations:WT/ACC/UKR/50
Page 39
- diethylbestrol not allowed;
- 0.0005 milligram per kilo of estradiol - 17;
- 0.015 milligram per kilo of testosterone;
Salmonella: 25 grams in frozen meat not allowed.
(b) and (c)  Technical Regulations and Stan dards /Sanitary and Phytosanitary Measures
Question 72.We recognize that after accession Ukraine will have the right to apply standards, technical
regulations and conformity assessment procedures for legitimate reasons such as the protection
of the protection of human, animal and plant life and health, and the prevention of deceptive
practices.  We appreciate that Ukraine understands that all such measures will need to be
applied in a manner that is consistent with the SPS and TBT Agreements.
However, every effort should be made to alig n Ukraine's standards as closely as possible with
international standards and to apply the fundamental principle of equivalence under the SPSand TBT Agreements in the recognition of oth er members standards, technical regulations and
conformity assessment procedures.
Ukraine will also need to ensure that after accession:
- no measures covered under the SPS or TBT Agreements will discriminate, or be applied
in a manner that discriminates between importers from different countries or in favourof domestically produced goods over imported goods;
- no SPS/TBT measure will be more trade restrictive than necessary to achieve its
legitimate objective;
- no SPS measure will be applied without sound scientific justification;
- no change in any SPS/TBT measure will be introduced without adequate notice being
given or without adequate opportunities for comment being provided to interested
parties;  and
- Ukraine will abide by its notification obligations under the SPS and TBT Agreements.
Answer:
Ukraine intends to abide by the SPS and TBT requirements and avoid discrimination in doing
so.
Question 73.
We note that in column seven of the tabulated applied tariff and tariff offer information
supplied in WT/ACC/UKR/40 of 24 September 1997, Ukraine indicated that SPS or certification
measures (or both) applied to a large number of products.
We would appreciate full details of each of the SPS/certification measures.
Do these SPS/certification measures relate specifically to information contained in other WTO
documents that have been circulated recently?WT/ACC/UKR/50
Page 40
Answer:
Yes, the documents do contain the information on sanitary and phytosanitary certification
measures.
(l) Government procurement
Question 74.
Does Ukraine plan to join the WTO Government Procurement Agreement upon its accession to
the WTO.  If not, please explain the reasons.
Answer:
Harmonization of the government procedures is taking place at the present time. As soon as
this process is completed, Ukraine will begin to take steps to join the WTO Government Procurement
Agreement.
Question 75.
We welcome Ukraine's efforts to reform its government procurement system and appreciate
that this effort has been undertaken with WTO disciplines and the UNCITRAL model in mind.
As you are aware, it is our position that  Ukraine should join the WTO Agreement on
Government Procurement on accession to the WTO.
Answer:
See the answer to question 74.
Question 76.
Does Ukraine have plans to introduce publication of tenders by electronic tendering systems?  If
so, please provide information on the types of systems being considered and when such systems
are scheduled to be operating.  If not, will Ukra ine consider establishing an electronic tendering
system in the future?
Answer:
Upon Ukraine's accession to WTO these issues, most likely, will be resolved.
Question 77.
Please provide a list of the government-owned  utilities in the telecommunications, power
generation and transportation sectors.  Please provide details of any plans to privatize these
sectors?
Answer:
The Law of Ukraine No.124/98-VR of 12 February 1998 "On the State Programme of
Privatisation for 1998" established the programme of privatization that contains a comprehensive list
of state-owned enterprises that are being privatized in Ukraine.WT/ACC/UKR/50
Page 41
The requested list will require a long time to prepare.  We ask you kindly to reconsider your
request.  We will endeavour to prepare it, if you request it again.
Question 78.
Please provide information on the size and structure of Ukraine's government procurement
market for a recent reference period (e.g. value of purchases and product categories by
government department or agency etc.).
Answer:
Monitoring of the government procurement market does not exist in Ukraine.
Question 79.
Does Ukraine provide MFN treatment to all foreign suppliers for government procurement?  If
not, please describe any preferential treatmen t, including methods for determining origin of
supplies, goods and services.
Resolution No. 694 of 28 June 1997 "On Organization and Conducting Auctions (Tenders) for
State Procurement of Goods (Works, Services)
Answer:
Ukraine provides most-favoured-nation treatment to all foreign suppliers of goods (works,
services) for government procurement.
Question 80.
We have had the opportunity to review quickly Resolution No._694 and would like to take this
opportunity to offer some preliminary comments:
(a) technical specifications:  we are concern ed about the way in which Resolution_No._694
addresses this issue.  The resolution fail s to stress the use of performance over design
criteria as called for in the Government Pr ocurement Agreement.  In addition, the
resolution fails to specify that references to trademarks, brand names, specific suppliers,
and the like should not normally be made in tender documentation;
(b) offsets:  Resolution No._694 (item_41) allows bids to be evaluated on some criteria which
may be considered prohibited offsets under Article_XVI of the Government
Procurement Agreement, such as internal investment and technology transfer.  TheGovernment Procurement Agreement makes cl ear that such requirements may in some
circumstances be used to determine qualifi cation to participate in the procurement
process, but not as criteria for awarding contracts;
(c) 15 per cent preference for Ukrainian suppliers:  the 15 per cent preferential price
adjustment permitted under item 41 of Resolution No. 694 raises serious MFN concerns;
(d) appeals:  Resolution No. 694 suggests that  Ukraine is working towards developing a
WTO-consistent appeals process.  However, the resolution lacks specificity in key area,
including whether participants in th e appeals process can be represented or
accompanied to hearings and whether opinions and decisions are given in writing.WT/ACC/UKR/50
Page 42
We look forward to the opportunity to provide additional comments and to discuss these issues
in more detail, perhaps in a fu ture Working Party when government procurement is on the
agenda.
Answer:
(a) Technical specifications: Yes, we are aware that the resolution does not contain such
provisions.
(b) The offsets: In the evaluation and selection of bids, a contracting authority may use any of the
criteria listed in Article 29 (4) of the Resolution No. 694 in accordance with the procedure set out
therein.
It is the contracting authority that determines whether it should use this or that criteria and
also the way the bids should be evaluated. But it does so only on the condition that the relevant bid is
economical and effective.
All the criteria are specified in the legal documents according to a prescribed procedure.  This
is done in case of open sales, sales with preliminary qualifications, and in competitive negotiations.
(c) A price preference of 15 per cent in favour of Ukrainian suppliers: The criteria requiring the
contracting authority to accept the best bid are spec ified in the tender documents.  According to the
prescribed procedure, the contracting authority provides all bidders, including foreign bidders, with
the relevant tender documents.  The procedure is set out in an invitation to tender.
If a contracting authority so wishes, a price preference can be included into the list of criteria.
It cannot exceed an amount of 15 per cent in favour of domestic goods ( works, services).
In accordance with the Resolution of the Cabinet of Ministers No.1058 of
24 September 1997, there can be no price preference in tender purchases involving sums from
UAH 10,000 to UAH 70,000.
See also the answer to question 85
(d) Appeals: Any supplier, regardless of the character or form of ownership of assets, may appeal
the decision of the contracting authority if th e amount of the purchase equals or exceeds US$100,000.
The procedure for purchases involving the sums that are less than US$100,000 is simplified
and does not provide for any appeal procedure. That is why the Resolution of the Cabinet of MinistersNo.1058 of 24 September 1997, does not contain any rules and provisions for appeals.
But, regardless of the quantity or value of procured goods, and the way the procurement is
conducted, Resolution No.1058 of 24 September 1997, specifies that where the expected value of
procurement ranges from UAH 10,000 to UAH 70,000 the contracting authority is allowed to acquire
the goods (services, works) by way of price requests. The establishment of a contractual relationbetween the contracting authority and a supplier as well as the conclusion thereof and the procedures
for dispute settlement are regulated by legislation.
Question 81.
Is Ukraine a party to an international or bilateral agreement respecting procurement
(Resolution No. 694, Section 1:5 and 1:6)?  Please provide details.WT/ACC/UKR/50
Page 43
Answer:
Currently Ukraine is not a party to any multilateral or bilateral international agreements on
government procurement.
Question 82.
How does Resolution No. 1058 of 24 September 1997 ("Establishing a Unified System for
Purchasing Goods (Works, Services) at the Expense of the State Budget and Foreign CreditsReceived Under the Guarantees of the Cabinet of Ministers of Ukraine" -  referenced in
WT/ACC/UKR/44/Add.1) affect the procedures and regulations pursuant to Resolution
No. 694?
Answer:
Resolution of the Cabinet of Ministers of Ukraine No. 1058 of 24 September 1997, expands
the application of tender procedures (such as open tenders, tenders requiring preliminary
qualifications competitive negotiations) to procurements within the domestic market. It alsoestablishes a tender procedure for procurement of goods in the domestic and foreign markets valued
from UAH 10,000 to the equivalent of US$100,000.
Question 83.
With regard to Section 1:4(c) of Resolution No. 694, please provide examples of "other special
cases" exclusions from the application of the regulations.
Answer:
Natural disasters and emergency situations.
Question 84.
In Section III:26 (Resolution No. 694), reference is made to publication of tenders by radio or
television, in addition to domestic and foreign newspapers and technical magazines.  Pleaseprovide further details about which tenders are published in each medium.  For example, are all
tenders which are open to foreign bidders, published in foreign newspapers?
Answer:
Pursuant to paragraph 26 of Resolution No.694 "On the Procedure for Organizing and
Carrying out of Auctions (Tenders) in the Field of State Procurements of Goods (Works, Services)"invitations to tender must be published by a contracting authority in the newspapers "Holos Ukrainy"
("Voice of Ukraine") or "Uriadovyi Courier" ("Government Courier"), and in relevant foreign media.
Question 85.
Section III.41(b) of Resolution No. 694 refers to  a price preference of 15 per cent in favour of
Ukraine suppliers.  Is this always applied in procurements open to foreign suppliers?  Is thiscriterium specified in invitations to tender and/or in tender documentation?  Does Resolution
No. 1058 provide price preferences in favour of Ukraine suppliers?WT/ACC/UKR/50
Page 44
Answer:
Criteria applied by the contracting authority, when evaluating the best tender bid, must be
included in the tender documentation.  Contracting authority must provide all suppliers, including
foreign suppliers, with tender documentation pursuant to the procedures mentioned in the invitation to
a tender.
A price preference of 15 per cent in favour of Ukrainian producers of goods (works, services)
can be included as a tender criteria by the contracting authority.  Price preferences are not applicable
to purchases from UAH 10 000 to UAH 70 000, concluded competitively, as prescribed by the
Resolution of the Cabinet of Ministers No.1058, of 24 September 1997, because the price constitutes
the primary criteria in such transactions.
Question 86.
The regulations approved by Resolution No. 694 (and Resolution No. 1058, if applicable) cover
procedures on tendering for procurement of goods, works and services of foreign origin.  Whatare the relevant procedures for domestic origin procurement?  What are the principal
differences (including preferences accorded to domestic suppliers) between foreign and
domestic origin procurement?
Answer:
The Resolution of the Cabinet of Ministers of Ukraine No. 694 of 28 June 1997, as amended
by the Resolution of the Cabinet of Ministers of Ukraine No. 1058 of 24 September 1997, should be
considered as a unified document governing procurement of goods (works, services) paid from funds
provided by the state budget.  An identical procedure applies to all procurements irrespective of the
origin of goods.  In other words, the same procedure applies to domestic and foreign origin
procurements.
Question 87.
Other possible criteria for evaluating bids, found in Section III:41(b) of Resolution No. 694,
appear to imply that foreign suppliers must provide for local investment, local employment,
local subcontracting, and transfer of technology, among others.  Are these criteria always
applied in procurements open to foreign suppliers ?  Are these criteria specified in invitations to
tender and/or in tender documentation?  Are th ese criteria affected by Resolution No. 1058?
Answer:
Pursuant to the procedure in Resolution No.694 any criteria listed therein may be applied to
determine the successful tender.
All criteria must be applied to ensure the economic benefit and efficiency of a purchase.Purchasing by means of open tenders, tenders with preliminary qualifications, and
competitive negotiations must specify the applicable criteria.  The Resolution of the Cabinet of
Ministers No.1058 of 24 September 1997, allows purchases from UAH 10,000 to UAH 70,000 to be
concluded by the means of bid/ask price requests.  The price closest to the expectations of the
contracting authority is the only criteria in such circumstances.
See also the answer to question 79.WT/ACC/UKR/50
Page 45
Question 88.
Please confirm that appeal procedures containe d in Section VII:6373 of Resolution No. 694 are
available to foreign suppliers.  Does Resolution No. 1058 contain appeal procedures;  please
explain these appeal procedures.
Answer:
An appeal is available to any supplier in the case of a purchase of US$100,000 and above.  Purchases
for less than US$100,000 are conducted by means of simpler methods and do not require appeal
procedures.  In all cases, irrespective of the purchase amount, contractual terms are fully enforceable.
Question 89.
Please provide a list of government departments and agencies to which the regulations under
Resolution No. 694 apply.  Please provide a list of government departments and agencies to
which the regulations under Resolution No. 1058 apply.
Answer:
Resolutions No. 694 and 1058 of the Cabinet of Ministers of Ukraine apply to enterprises,
organizations and institutions regardless of their ownership, if they carry out purchases of goods
(works, services) using state budget funds or foreign loans raised with guarantees provided by the
Cabinet of Ministers of Ukraine.  In other words, the above resolutions apply to all government
departments and agencies.
4. Policies Affecting Foreign Trade in Agricultural Products
(a) Imports
Concerning the authorization procedure for imported food stuffs:
Question 90.
We would appreciate Ukraine's explanation of the authorization procedure for imported food
stuffs.  Is this for health and safety reasons?
Answer:
Procedures for importation of food products, raw food and accessory products into Ukraine
and the enforcement of compliance with such procedures are set out in Articles 16 and 17 of the Law
of Ukraine "On the Quality and Safety of Food Products and Raw Food Materials" and the Resolutionof the Cabinet of Ministers of Ukraine No.1211.  In accordance with Article 4 of the above Law, the
list of food additives permitted for use in food products must be approved by the Cabinet of Ministers
of Ukraine.  The Derzhstandard has prepared a draft resolution on this matter which is currently under
review by the Cabinet of Ministers.
The Law of Ukraine "On Amending the Resolution of the Cabinet of Ministers of Ukraine
"On Standardisation and Certification No.333/97 of 11 July 1997" determines that the adequacy of a
product,imported  and sold on the territory of Ukraine has to be certified. The relevant certificate
(either certificate of adequacy or a certificate of recognition of a foreign certificate)is either issued or
recognized, as the case may be, by one of two bodies. These are the Derzhstandard or any body
accredited by it.WT/ACC/UKR/50
Page 46
The Derzhstandard enters the certified products into the Unified Register of Products
Certified in Ukraine.
The customs control bodies legalise the entry of goods on the basis of the Unified Register.
The Derzhstandart controls the availability of certificates for goods, sold by legal entities or
natural persons in the customs territory of Ukraine.
The authorization of the Products is conducted with a view to health protection and
epidemiological safety of the population.
Question 91.
Does Ukraine prohibit the use of specific food ad ditives?  In other words, does Ukraine have a
list of permitted additives?  If so, where can this list be obtained?  How are food additives
regulated?
Answer:
According to the Law of Ukraine "On the Quality and Safety of Food Products and Raw Food
Materials" and the Law of Ukraine "On State Regula tion of Import of Agricultural Produce", it is the
Cabinet of Ministers that approves the list of food additives allowed or prohibited to be used in
Ukraine. The conditions for use of food additives are provided for in the Sanitary Rules on Use of
Food Additives, which establish the procedure of state  registration of additives and their maximum
content level in specific food products as well as the rules for safe use of food additives in productionof food products.
We submit a list of food additives, which are allowed or prohibited in Ukraine. (See
WT/ACC/UKR/51)
Question 92.
Are products shipped in bulk subject to the same labelling requirement specified in the Cabinet
Ministers No. 1372 of 9 November 1996 "On E nhancing Quality Control and Safety of Food
Products"?
Answer:
The product marking requirements are determined by the Law of Ukraine "On the Quality and
Safety of Food Products and Raw Food Materials".
The product marking requirements,specified in the Resolution of the Cabinet of Ministers
No.1372 of 6 November 1996 "On the Improvement of Quality of Control Measures and Safety of
Food Products" are applied to all food products, including bulk shipments. The marking of the
products is also determined by Article 7 of the Law of Ukraine "On the Quality and Safety of Food
Products and Raw Food Materials". An English language translation of the law is submitted as aseparate document. (See WT/ACC/UKR/51.)
The general requirements also apply to products brought into Ukraine for reprocessing or
packaging because such products fall within the definition of raw food materials in Article 1 of the
Law of Ukraine "On the Quality and Safety of Food Products and Raw Food Materials".WT/ACC/UKR/50
Page 47
Question 93.
Are products shipped for further processing or repackaging in Ukraine subject to the same
labelling requirement?  Please explain?
Answer:
See the answer to question 92.
New Agricultural Import Law
Question 94.
The new Law on the State Regulation of Import of Agricultural Produce contains provisions
concerning certification and control over imports of agricultural produce.  We assume these
measures coincide with the non-tariff measures "SPS" and "certification" as mentioned in the
"Unified Customs Tariff currently in force with  applied non-tariff measures and with the
customs tariff restructuring offer according to WT/ACC/UKR/22".  Could Ukraine elaborate
on the procedures to follow for traders exporting agricultural products to Ukraine.
Answer:
The Procedure for Imports of Food Products, Raw Food Materials and Related Products into
Ukraine and control over its implementation are set forth in articles 16 and 17 of the Law of Ukraine
"On the Quality and Safety of Food Products and Raw Food Materials" and the Resolution of the
Cabinet of Ministers of Ukraine No. 1211 of 11 November 1997 "On the Approval of the Procedure
for Customs Clearance for Goods (Products) Subject to Obligatory Certification in Ukraine". The text
of the Procedure. It is as follows:
Procedure of Customs Clearance for Imported Goods
(Products) Subject to Obligatory Certification in Ukraine
1. This Procedure determines the mechanism of Customs clearance for imported goods
(products), subject to obligatory certification in Ukraine that are brought into the Customs territory of
Ukraine by subjects of entrepreneurial activity to be sold or traded.
2. The procedure shall not apply to imported goods (products) brought to Ukraine:
- as gifts;
- temporarily;- as a humanitarian or technical relief;
- a part of authorised capital of incorporated juridical persons;
- on the basis of joint investment activity contracts;
- for exhibition purposes;
It also shall not apply to:- goods (products) re-imported into the Customs territory of Ukraine;
- goods intended for storage in licensed customs warehouses;
- goods imported in the regime of import with the aim of further re-export in the order,
approved by the State Customs Service.WT/ACC/UKR/50
Page 48
3. The legal basis for clearance of goods (products) so that they may be unrestrictedly used in
the Customs territory of Ukraine are:
- conformity certificate of goods (products) or its copy, issued by Derzhstandart or a
duly authorised certification body;
- certificate of recognition of a foreign conformity certificate, issued by Derzhstandart
or a duly authorised certification body;
- description of the goods included into the Unified Register of Products Certified in
Ukraine.
The specified conformity certificate (certificate of recognition) or its copy applies to:
- goods (products) arriving at the address of a single recipient with a single shipping
document (invoice, bill of lading, etc.);
- goods (products), arriving at the destination point simultaneously in one shipment,
destined for a single receiver, sent from a single shipper, loaded at a single departurepoint;
- goods (products), supplied through a pipeline on the basis of a single act of
acceptance during the term, necessary to transfer the goods (products) of a volume,
specified in the act.
4. The number and the date of issue of a conformity certificate of goods (products) or a
certificate of recognition of a foreign certificate are specified in the customs declaration. The Customs
Authority that has conducted the Customs clearance of goods for unrestricted use shall retain
photo-copies of the specified documents.
5. The basis for Customs clearance of goods (products), brought into Ukraine in disassembled
form (complex objects) or a part of any other goods (products), that require installation are:
- a contract on performing certification works of a good (product) between the
proprietor (owner) of the good, held in the Customs control and the certification
body;
- a document issued by a certification body, certifying the conclusion of such contract,
containing the number of a contract and the date of its signature.
6. In case samples of products held in the Customs control are required to conduct certification
of the goods (products), the proprietor (owner) must address the Customs Authority in writing for
such samples, based upon a contract between a proprietor (owner) of goods (products) and the
certification body rendering certification services, or with a written confirmation of such contracts by
the certification body, containing the number of th e contract, the date of signature, the period of
carrying out the work, and the necessary number of samples.  If the certification requires testing
resulting in a loss of the goods, the owner (proprietor) submits a proper written notice to the Customs
Authority and submits an act of sample destruction, issued by the certification authority.  The value of
the samples is included in the value of goods (services) in the Customs declaration.
7. If the proprietor (owner) of goods (products) does not receive a conformity certificate for
goods (products) or a certificate of recognition of a foreign certificate, the goods (products) have to be
placed in a licensed Customs warehouse or removed from the Customs territory of Ukraine.WT/ACC/UKR/50
Page 49
Question 95.
Concerning the new agricultural import law the "Sta te Regulation of the Import of Agricultural
Products", we understand that it was signed by President Kuchma on 3 October 1997 and will
become effective on 17 November 1997.  We have  raised our concern on the new agricultural
import law with various Ukraine government officials.  We recently received information from
our embassy in Ukraine trying to clarify some of these concerns.  Unfortunately, we still havesome questions on this new law.
One Ukraine official told us that  although the law had been passed, it would not be implemented
due to some internal problems.  However, one of our exporters has already experienced delays
and problems associated with this law.  Our exporter noted that all imports had been suspended
by customs officials and were now only allowed on an arbitrary basis.  What is the status of the
implementation of this law?  How will Ukraine work to avoid the problems associated with this
law at the border?
Answer:
Kindly inform us about the details of the suspension of import that the particular importer
experienced. What was the actual reason for the refusal by the Customs Authority? For example, the
importer could have failed to present the certificate of adequacy or a document necessary for customs
legalisation of a product, or any other document necessary for the legalisation procedure.
As concerns the effect of the Laws of Ukraine "On the State Regulation of Import of
Agricultural Produce" on the imports of goods, the s ituation is as follows. The Law has almost had no
effect on the volume of imports of goods to this Law applies, and it is premature to form any
conclusions about its cause-and-effect consequences. Article 3, dealing with the import of animals, is
not applied, and the tariffs in Article 6 for agricultural produce have been reduced by the Law ofUkraine No.32/98-VR, of 16 January 1998.
Question 96.
If our understanding is correct only duties of 30 per cent or higher will be subject to seasonal
duties, then it appears that the minimum season al duty will be 60 per cent.  The maximum duty
could be much higher.  If this is true, then we  have some potentially serious concerns associated
without market access negotiations.  Although th is law reduces the tariff to zero on a few
products, it substantially raises the tariff on pr oducts in HS chapters 7-12.  Increasing tariffs at
this stage of your accession negotiations will  not be welcomed by most member countries.
Answer:
According to the Law of Ukraine "On State Regu lation of Import of Agricultural Produce" (as
amended by Law of Ukraine No.32/98-VR of 16 Ja nuary 1998), the seasonal import duties are levied
every year at the level of full rates of import duty rates for agricultural produce listed in Groups 7 -12
of the Commodity Nomenclature of Foreign Economic Activity during the period of harvesting and
storage of similar domestic produce. However, according to Article 6 of the Law, such agricultural
produce is subject to the regular rate, if it equals or exceeds the 30 per cent rate. In other words,
seasonal rates replace the Article 6 regular rates only during the prescribed periods and only if the
regular rates are less than 30 per cent
Since, as a result of the above Law, the maximum level of a seasonal rate may not exceed 50
per cent, it does not contradict the Concept of Transformation of the Customs Tariff for the periodWT/ACC/UKR/50
Page 50
from 1996 through 2005 (documents WT/ACC/UKR/22 and WT/ACC/UKR/Add.1) which forms a
basis for market access negotiations. The Concept establishes a maximum level of tariffs of up to
70 per cent for agricultural produce.
See also Answer to question 32.
Question 97.
We also understand that this new law establishes import quotas, not tariff rate quotas.  All
quantitative restrictions on agricultural products, including import quotas, are prohibited in the
Uruguay Round Agreement on Agriculture.  Does Ukraine understand that application of such
measures is inconsistent with the WTO and that this law must be brought into conformity prior
to Ukraine's accession.
Answer:
The requirements of the Agreement on Agriculture and the Agreement on Safeguards will be
altered to when Ukraine accedes to the WTO.
Question 98.
We are still confused on what is meant by "mutua l recognition".  Does this mean that a bilateral
agreement must first be negotiated before Ukraine will recognize certificates from other
countries?  If this is the case, we also have concerns about this aspect of the new agricultural
law.
We expect that once Ukraine is a Member of the WTO it will follow the SPS Agreement and
recognize certificates of all WTO Member countries, not just those where bilateral agreements
have been negotiated.
Answer:
Foreign certificates for agricultural produce are taken into account only in cases of mutual
recognition of such certificates as envisaged by relevant international agreements. In other words the
agreements must include provision on the mutual re cognition of certificates. For information on the
sanitary and phytosanitary requirements, see the answer to question 51.
(b) Exports
Export SubsidiesQuestion 99.
In questions 73 and 74 of document WT/ACC/UKR/25/Add.1, Ukraine was asked for further
clarification regarding the following statements:  "Ukraine is currently developing legislation
which will eliminate subsidies to export", and "b eginning with 1995, export subsidies no longer
exist".  Could Ukraine indicate if the legislation which will eliminate export subsidies has beenprepared (if so, please provide us a copy)?  Could Ukraine explain its answer to question 187 of
document WT/ACC/UKR/25 which states that "the Government is developing a Decree which
could stipulate export subsidies, in which case  Members would be informed"?  What is the
status of the Government's "Export Potential Development Programme"?  Has it been
approved by the Supreme Rada?WT/ACC/UKR/50
Page 51
Answer:
Ukraine does not have any legislation establishing export subsidies. A draft "Programme for
the Development of the Export Potential" in Ukraine has been discussed, but it has not been approved
at the government level.
Question 100.
Our expectation is that export subsidy commitm ents should be based on a recent three year
period (in this case 19941996) and if there was not use of export subsidies during that period
then export subsidy commitments should be bound at zero.  We are please to see in document
WT/ACC/SPEC/UKR/1/Rev.1/Corr.1 that Ukraine accepts the commitment that export subsidy
commitments be bound at zero.
Answer:
Yes, Ukraine confirms that during the latest relevant three year period (1994-1996) export
subsidies were bound at zero.
(c) Internal policies
State Trading
Question 101.
Please describe the role of the new State-owned procurement corporation "Bread of Ukraine"
which took over the grain procurement activities of the Central Grain Products Department ofthe Ministry of Agriculture.
Answer:
The State owned corporation "Bread of Ukraine" performs the function of grain acquisition
for consumption. The corporation uses market methods in its acquisition activities  and conducts
business in the same manner as commercial entities. It  competes with such commercial entities in all
activities pertaining to the acquisition of grain including processing and the acquisition of related
products. "Bread of Ukraine" performs its services for state, regional and other consumption
requirements.
Question 102.
Please provide the following information on  Ukraine's State-owned trading enterprises
(including any trade organization which receive s federal or sub-federal government funds,
preferential credits or legislative privileges for the import and/or export of products):
- what are the products or groups of products for which these State-owned enterprises are
maintained, or for which an enterprise has exclusive or special privileges in Ukraine;
- what is the reason and purpose for introducing and maintaining these enterprises;- what is the function of each of these ente rprises, in particular, are they involved in
exports and/or imports;  what are the crit eria used to determine the quantities to be
processed domestically (including inter-region movements) exported and/or imported;
how are export prices for these entities determined;  how do export prices and resale
prices of imports compare with domestic prices in 1994, 1995 and 1996 figures;  and are
long-term contracts negotiated by these enterprises.WT/ACC/UKR/50
Page 52
Answer:
Enterprises with different forms of asset or capital ownership structures conduct foreign trade
in goods and services in Ukraine.
Within the most recent eight month period in 1997, the Ukrainian export-import trade in
goods was as follows:
The number of goods Exports Imports
The goods’
value under
the FOB
conditionsThe share in
the total
amountThe
number of
goodsThe goods’
value under
the FOB
conditionsThe share in
the total
amount
All in all 13437 9045.6 100.0 21184 11136.3 100.0
including: according to the forms of ownership of their assets:
Private 2247 273.7 3.0 3205 481.3 4.3
collective 9937 7087.6 78.3 15576 8664.8 77.8
public 988 1492.4 16.5 1602 1450.6 13.0
the latter including:
government 931 1406.6 15.6 1317 1387.3 12.4
communal 57 85.8 0.9 285 63.3 0.6
property ofother states2 0.0 0.0 2 10.7 0.1
the property of
international
organizationsand legal
Entities of other
states227 177.6 2.0 721 521.0 4.6
other 36 14.3 0.2 78 16.9 0.2
The export share of the 988 public enterprises constitutes as little as 16.5 per cent of the total
exports of goods. The 1602 enterprises with the same form of ownership conduct 13.0 per cent of the
total imports of goods. The largest exporter of goods is the "Kryvorizhstal" integrated works (4 per
cent of the total amount of the imports). The impor ts of the largest state owned importers  do not
exceed 3 per cent of the total.
Enterprises, conducting foreign trade in services (as of the end of the first half of 1997) can be
classified according to the values of the services as follows:
Exports ImportsThe number of
subjects
Value in Thousandsof US$Value in Thousands
of US$export import
- All in all 2292203.27 411929.65 2783 1423
- Including according to form of ownership:
- private 5956.89 14627.09 147 101WT/ACC/UKR/50
Page 53
Exports ImportsThe number of
subjects
Value in Thousandsof US$Value in Thousands
of US$export import
- collective 1590356.50 166674.76 1870  1036
- public 649135.25 188026.98 624 218
the latter including:
- government 639222.57 187388.12 530 209
 - communal 9912.68 638.86 94 9
- property of other states 7527.51 11841.24 1 1
- organizations 39227.12 30659.58 141 67
The share of State owned enterprises in the total amount of exports of services constitutes
28.3 per cent, including those of government enterprises (29.7 per cent) and communal enterprises
(0.4 per cent). The share of such enterprises in the total imports of services constitute, respectively,45.6 per cent, 45.5 per cent , 0.1 per cent.
The imports of services by largest state owned enterprises do not exceed 3 per cent. The
largest importers of services are:  "Ukrza liznytsya" (Lviv), (10.9 per cent), "Ukrtelekom"
(8.7 per cent) and "The Southern Ukrainian Atomic Station" (3.5 per cent).
Domestic Support and Export Subsidies (WT/ACC/SPEC/UKR/1/Rev.1 and Rev.2)
Question 103.
Ukraine mentions in document WT/ACC/UKR/41 (reply to question 61) a draft of a State
Programme on Development of Export Potential in order to create appropriate conditions for
increasing exports of goods.  What kind of support mechanisms are foreseen in this draft?
Answer:
The Programme envisages the following mechanisms of development:
- the establishment of government services of general nature (scientific research, staff
training, information distribution, consulting, inspection services, marketing services,
infrastructure development services(except subsidising infrastructure objects within
separate enterprises);
- financial participation of the government in programmes on the security and
insurance of income;
- promotion of readjustment programmes for redundant industries;
- promotion of structural changes through resource management programmes;
- promotion of structural changes through investment stimulation programmes;
-  environmental protection programme support;
- regional aid programme support.WT/ACC/UKR/50
Page 54
Question 104.
The revised agricultural supporting tables in document WT/ACC/SPEC/UKR/1/Rev.2 contain
three measures under the category "Structural adjustment assistance provided through
investment aid".  Does Ukraine agree that partial reimbursement payments to agricultural
producers for elite seeds purchased should be included as AMS (input subsidies)?  Could
Ukraine explain in more detail about the "payment s for a part of banking interest on loans?
Answer:
Ukraine does not agree that partial reimbursement payments to agricultural producers for the
acquisition of elite seeds purchased should be considered AMS (input subsidies). Such payments meet
the criteria of items 1 and 11 of Addendum 2 of Agreement on Agricultural. Also, such payments
refer to measures, exempt from reduction commitments. They are made from specially budgeted
funds, earmarked for the improvement of production and efficiency of production.
Document WT/ACC/SPEC/UKR/1/Rev.2 lists the laws of Ukraine that regulate partial
payments of interests on bank loans.
Question 105.
As regards the revised agricultural supporting tables in document
WT/ACC/SPEC/UKR/1/Rev.2 could Ukraine explain the aim and functioning of the regime(s)
with administered prices, in particular:
- what is the aim of the regime with procurement prices;  to ensure availability for State
needs or ensure farmers income;
- which criteria are used for fixing admini stered prices and who fixes these prices;
- are the administered prices identical all over Ukraine;
- when are these administered prices fixed, and where are they published;- are Ukrainian authorities obliged to buy all products offered by farmers or are
quantitative limits applicable;
- are farmers obliged to sell products to governmental agencies, or can they sell the whole
harvest on the open market;
- what is the source of information for the external prices used;- how do eligible production levels in supporting table DS:5 relate to total production of
products involved?
Answer:
At the present time prices of agricultural produce are not fixed by the state.. That is why there
is no government criteria or agencies to prescribe or control prices. Ukrainian farmers are not requiredto sell their produce to state agencies and ma y trade all of their crops in the open market.
The commodity exchange prices for a particular product are based on market information and
are used for that purpose, and the prices quoted on international exchange determine the price in
foreign trade (the foreign trade price for each particular product is determined on the basis of prices
used at a relevant commodity exchange that is leading for the product.WT/ACC/UKR/50
Page 55
The acceptable production levels, mentioned in Table DS:5, coincide with output of a
particular product.
Question 106.
Please provide additional information and details for each domestic support policy measure
reported in the revised information on domestic support in agriculture provided in
WT/ACC/SPEC/UKR/1/Rev.2 of July 1997.
Answer:
Updated information may be found in a separate document accompanying this document.
(See WT/ACC/SPEC/UKR/1/Rev.3.)
Question 107.
We thank Ukraine for providing information on domestic support and export subsidy
commitments for the 19941996 reporting p eriod in WT/ACC/SPEC/UKR/1/Rev.2 of
16 July 1997.  We have concerns that it falls short of what would be acceptable to WTOMembers.  We seek confirmation that Ukraine intends to use the 1994-1996 reporting period as
the basis for its domestic support and export subsidy comments.
Answer:
We reaffirm that the period from 1994 through 1996 remains the basis for the calculation of
domestic support.
Question 108.
Please provide the level of supports using one currency (i.e. US$. ECU, or SIR) in the
Supporting Table, in nominal terms.  For example in WT/ACC/SPEC/UKR/1/Rev.2 Supporting
Table DS:1 reports expenditures in Karbovanets and Hryvnia, while Supporting Table DS:5
reports amounts in US$.  In WT/ACC/SPEC /UKR/1/Rev.1 the expenditures are shown in
ECU's.  We would appreciate if all the levels of support could be provided in the same currency
to provide consistency.
Answer:
The levels of supports expressed in the US$ value are given in the latest version of
Table DS:1.
Question 109.
Ukraine stated in its explanatory notes to WT/ACC/SPEC/UKR/1/Rev.1 that "measures on
non-product-specific support and direct payments under production-limiting programmes (blue
box) are not applied".  Could Ukraine please reflect this fact by submitting, in a revised or
addendum to document WT/ACC/SPEC/UKR/1/Rev.2, a blank copy of Supporting Table DS:3and Supporting Table DS:9.WT/ACC/UKR/50
Page 56
Answer:
The tables given do not include Table DS:3, i.e. we consider it to be "blank". They include
Table DS:9.
Re:  Supporting Table DS:1 (Green Box Programmes)
Question 110.
Please provide supporting information and analysis that demonstrates that the measures
Ukraine identifies as "green" have no, or at most  minimal, trade-distorting effects of effects on
production, and are provided through a pub licly-funded government programme.  Please
provide for each type of measure in place in  the most recent three years (i.e. 1994-1996) a
complete description of these measures (how they are applied/administered and by whom;
reference to Laws or decrees;  eligibility etc.) wi th a reference to the criteria in Annex 2 of the
Agreement on Agriculture (measures which could fit the scope of either (a)  research,  (b)  pest
and disease control,  (c)  training services, (d)  extension and advisory services, (e)  inspection
services, (f)  marketing and promotion services, and (g)  infrastructural services).
Answer:
All the necessary information is given in the u pdated information referred to in the answer to
question 106.
Question 111.
Under general services, Ukraine states that pest and disease control concerns measures on the
struggle with especially dangerous pests and diseases of agricultural plants and animals.  Please
provide a list of those pests and diseases, and describe the measures envisaged under the Action
Plan of the Cabinet of Ministers?  Also, could Ukraine provide the laws, rules and regulations
for plant quarantine of imports?
Answer:
The list of pests and diseases of plants is submitted in connection with the answer to
question 67. The list of dangerous diseases of ag ricultural animals meets the requirements of the
International Zoosanitary Code. As member of the International Office of Epizootics, Ukraine adheres
to this code.
Question 112.
Under general services, under the programme "Payments for fundamental improvement of
land", Ukraine states that it consists of "liming of sour soils and gypsuming of saline soils".
Please specify where in paragraph 2 of Annex 2 this programme falls, and how it meets the
appropriate criteria.
Answer:
Paragraph 2 of Addendum 2 states that the progra mmes referred to in the previous answer are
not confined to the criteria thereof and that they may satisfy general criteria defined in Paragraph 1.
The programme, mentioned in the question, meets the requirement.WT/ACC/UKR/50
Page 57
Question 113.
Under "structural adjustment assistance provided through investment aids", Ukraine includes
the measures "Support of selection in stockbreeding, upgrading of selection and genetic
potential, improvement of cattle and poultry strain, and use of improved seed".  Please provide
further detail on this measure.  For example, why and how does "partial reimbursement or
expenditures on improved seed" qualify as an investment aid.  Could Ukraine also pleaseprovide more information on the "structural disadvantage" that is addressed through these
schemes?
Answer:
All the necessary information is given in Table DS:1.  We do not have more detailed
information.
Question 114.
We note that Ukraine has provided the monetary  value of measures for 1994 and 1995 in billion
karbovanets (KRB) and changed in 1996 to million hryvnias (HRV).  We understand that HRV,
which is equal to 100,000 KRB, was introduced on 2 September 1996.  We would appreciate if
Ukraine could provide consistency in presenting the monetary values in the green box tables.
Answer:
As the national currency rate was frequently altered during the period mentioned in this
question, and a conversion coefficient does not exist, we are not able to present the monetary values in
their dollar equivalents. This is unfortunate, but it is a fact which creates a gap in the statistical record.
Question 115.
Ukraine has moved "support of selection in stockbreeding - upgrading of selection and genetic
potential, improvement of cattle and poultry stra in" from (a) General services to (h)  Structural
adjustment assistance provided through investment aids - 1".  We would be interested in
further details of this support and how Ukraine considers it meets the criteria of structural
adjustment as opposed to general services.
Answer:
Unfortunately, we do not have the required information.
Question 116.
We note that Ukraine no longer appears to be claiming that it has support for "public
stockholding for food security purposes".  We  also note that Ukraine has indicated "not
applied" for "payments for relief from natural disasters" where previously it had indicated
"reimbursement for damages caused by a natural disaster".
Answer:
No funds have been made available to the Ministry of Agro-industrial Complex to offer relief
for damages caused by natural disaster.WT/ACC/UKR/50
Page 58
Question 117.
Ukraine has moved "(1)  Other - partial reimbursement of agricultural producers' expenses on
payment of interest under banking loans" to "(h)  Structural adjustment - 3".  We seek details
from Ukraine on how they consider that this  meets the criteria of Annex 2 of the WTO
Agreement on Agriculture.  We consider that this  would be more appropriately included in the
amber box as non-product-specific support.
Answer:
We are grateful for the suggestion, but in present circumstances we are not in a position to
agree or disagree.
Question 118.
It is helpful that Ukraine has indicated the law to which each support programme is related to.
It would also be useful if Ukraine could indica te the authorities responsible for administration
of the measures.
Answer:
Listing of support programmes and the authorities required to administer them is not possible
at this time because no actual distribution of funds has taken place. We expect the relevant
information to become available in the near future.
AMS (Supporting Table DS:4)
Question 119.
We note that Ukraine has only provided a figure of total AMS.  This table should be expanded
to provide full details of product-specific support and total support for each year of the
reporting period and an average of the three years.
Answer:
Such figures are not available. See the answer to question 100.
Question 120.
Please confirm that Ukraine is basing its base total AMS on the period 1994-1996.
Answer:
See the answer to question 107.
Question 121.
In order to conform with document WT/ACC/4 which describes how this Supporting Table
should be presented, please provide th e product-specific AMS for each commodity.WT/ACC/UKR/50
Page 59
Answer:
AMS on goods are supplied in Table DS:5.
Question 122.
The current total AMS reported in WT/ACC/SPEC/UKR/1/Rev.2 is US$2,380.3 million.
Converted into ECU this total would be 2,084.8 million.  In WT/ACC/SPEC/UKR/1/Rev.1
Ukraine reported a current total AMS of 1,917.6 million ECU, while inW/ACC/SPEC/UKR/1/Rev.1 it reported 4,490.2 million ECU.  Please explain these differences.
Answer:
The correct amount is US$2,380.3 million.
Question 123.
We note that Ukraine has changed its fi gure from 1,917.6 million ECU to US$2,380.0 million.
We would be grateful if Ukraine could provide the exchange rate used for this conversion.  We
note that Ukraine provided the exchange rate of ECU1 = US$1.235 in its previous tables.  Has
Ukraine used the same rate in  its conversion for this table.
Answer:
A different exchange rate was used from  ECU 1=US$ 1.235.
Market Price Support (Supporting Table DS:5)
Question 124.We welcome the provision of details by Ukraine on market price support for the 1994-1996
reporting period.  We note that Ukraine has changed the currency from ECU's to US$.  We
would be grateful for confirmation that the ex change rate is the same as previously used.
Answer:
We reaffirm that the same exchange rate is being used.
Question 125.
We note that the eligible production for th e particular products in the 1986-1990 reporting
period (WT/ACC/SPEC/UKR/1/Rev.1) is the same as the eligible production for the 1994-1996
reporting period (WT/ACC/SPEC/UKR/1/Rev.2).  We seek up-to-date details of the eligible
production for market price support for each year of the reporting period and the average ofthe reporting period.
Answer:
We do not have any specific information arranged by years.WT/ACC/UKR/50
Page 60
Question 126.
Ukraine has previously provided details of the total production for beef, pork, bird's meat,
granulated sugar, butter, sunflower oil and clean wool in thousand tons.  We seek details of the
value of production for all the products for which Ukraine is claiming product-specific support
to assist in determining whether Ukraine has de minimis levels of support.
Answer:
No, there is no support
Question 127.
Price parity:  In its response to question 59 of document WT/ACC/UKR/25/Add.1, Ukraine
states that "price parity in Ukraine is defined by way of comparison of growth rates of prices
for industrial produce and services, consumed by the agriculture, with the growth rates of
prices for agricultural produce".  Using an example, please explain how price parity for
agricultural products is determined?
Answer:
Unfortunately, no actual examples are available. The price parity is a model.
Question 128.
State intervention/procurement:  In questions 63, 64 and 67 of document
WT/ACC/UKR/25/Add.1, Ukraine was requested to provide a comprehensive list of agriculturalcommodities falling into the category of essential commodities (HS 6-digit basis) which would be
purchased by an intervention agency at an announced minimum support price, as well as
information about the role of this agency.  Ukraine responded that the State Intervention
Provision Fund to buy into strategic commodities was not yet established and that such
information was thus not available.  Could Ukraine please provide updated information on thestatus of this Fund?    Which agricultural products will be eligible/affected/purchased at these
announced minimum prices?  What will the State Intervention Provision Fund or the National
Intervention Foodstuffs Fund operating budget be?  What will the level of minimum support
prices be relative to world prices and domestic prices (please provide reference of relevant
decrees or laws)?
Answer:
Actually, the State Corporation "Khlib Ukrayiny" (Bread of Ukraine) has established a state
investment fund for the stabilisation of the grain market at 600,000 tons in 1998.
Question 129.
We would appreciate if Ukraine could provide detailed explanations of "eligible production",
"external reference prices", "applied administer ed prices", and the exchange rates used in
Supporting Table DS:5.  It should be explained in further detail what these elements are, how
they were derived, etc.  with relevant sources of information.WT/ACC/UKR/50
Page 61
Answer:
No information other than included in Table DS:5 is available.
Non-product-specific support (Supporting Table DS:9)
Question 130.
We note that Ukraine has previously indicated that it does not provide any non-product-specific
support.  However, we consider that "Partial reimbursement of agricultural producers'expenses on payment of interest under banking loans" should be included as
non-product-specific support and not as a green box measure.
Answer:
Ukraine submits that the particular measures fall within the "green box" category.
Law on the State Regulation of Agricultural Produce
Question 131.
We have some concerns with the law:- it puts in place applied tariffs at levels higher than its proposed bindings;
- it introduces import quotas contrary to Article XI of the GATT 1994 (although we are
not sure if tariff quotas may be intended);
- it does not abide by the standstill expect ation on new trade-restrictive measures;
- it provides for auctioning of quotas in breach of tariff bindings under Article II of the
GATT 1994.
Answer:
Import duties in most cases do not exceed the limit levels established in the Concept of
Transformation of the Customs Tariff for the Period from 1996 through 2005 (see documents
WT/ACC/UKR/22 and WT/ACC/UKR/22/Add.1). The concept is an invitation to market accessnegotiations. Moreover amendments to the Law of Ukraine No.644/97-VR of 19 November 1997
reduce import duty rates. The average current tariff rate is reduced to little as 0.29 per cent.
- Article I (Tariff regulation)
Question 132.
We assume that the reference in this law to "pre ferential rates" of import duty and excise are
Ukraine's most-favoured-nation rates of import duty and excise.  Is this assumption correct?
Answer:
Yes, this assumption is correct. The import duty rates are privileged (not preferential), within
the context of the most favourable regime. However, this Law does not set excise rates.WT/ACC/UKR/50
Page 62
Question 133.
If this is correct, what term would describe the preferential rates of import duty that would
provide CIS countries or any of Ukraine's free-trade are partners with preferential (for
example, duty free access) to its domestic market, for example, under the provisions of the
Ashkabad Agreement of 1993 or any agreement to establish a free-trade area, to which Ukraine
may be a party?
Answer:
The import duty rates applicable to free trade and CIS partners are set at zero level.  They
have no specific terms or names.
Question 134.
Which natural persons or legal entities enjoy privileges in relation to the payment of import
duty in Ukraine?  How do they qualify for these privileges?
Answer:
The following goods are exempt from customs duty:
(a) vehicles that carry out regular international tr ansportation of loads, luggage and passengers as
well as logistical materials and equipment, fuel, food products and other assets necessary for
their proper use during the period of being on the road, at interim stop points, or vehicles,
purchased abroad to replace vehicles damaged in accidents;
(b) logistical materials and equipment, fuel, raw materials for industrial reprocessing, food stuffs
and other assets, exported from the customs territory of Ukraine to provide for the production
activity of Ukrainian and chartered ships that conduct sea fishery, as well as the products of
the fishery, imported into the customs territory of Ukraine;
(c) the currency of Ukraine, foreign currency, and securities;(d) goods and other objects acquired by Ukraine in accordance with its laws;
(e) goods and other objects that had been damaged before passing through the customs border of
Ukraine and as a result have become unusable as products or materials;
(f) objects brought into Ukraine for official or personal use or brought out of the customs
territory of Ukraine by organisations  and persons that according to international agreementsand Laws of Ukraine enjoy the right of duty free export and import of such objects;
(g) goods and other objects, originating from the customs territory of Ukraine and reimported
into its territory without any processing or repr ocessing, as well as goods and other objects of
foreign origin that are reexported from the customs territory of Ukraine without processing or
reprocessing;
(h) goods and other objects re-imported into the customs territory of Ukraine and originating
from another territory the customs duty for which has been paid when being imported to
Ukraine for the first time but having been temporarily brought out of the customs territory of
Ukraine;WT/ACC/UKR/50
Page 63
(i) goods and other objects that are reexported from the customs territory of Ukraine and
originating in its territory and being brought temporarily into the customs territory of Ukraine,
if the duty for these goods has been paid when they were brought out of the customs territory
of Ukraine for the first time;
(j) goods (except for excisable items), imported by national and international associations of
citizens who have suffered as a result of Chernobyl disaster. The rules applies only toassociations the statute of which envisages offering social and medical relief to persons that
have suffered from the Chernobyl Disaster and to enterprises that are founded by such
associations, if persons that have suffered as a result of a Chernobyl disaster comprise at least
75 per cent of members of such associations and of people working at such enterprises. The
list of national and international associations of citizens that have suffered as a result of
Chernobyl disaster, their enterprises and organisations, the list of the goods, imported by them
and the limit of the amount of relevant imports are approved by the Cabinet of Ministers;
(k) other goods and other objects exempted by the Cabinet of Ministers of Ukraine.
If imported goods fall within the list of product covered by Article 6 of the Law of Ukraine
"On State Regulation of Import of Agricultural Produce" the relevant natural persons or legal entities
with customs duty privileges according to other legal acts of Ukraine are not exempt from import
duty.
Question 135.
Does the ability of any person or entity to qualify for such privileges depend in any way on:
- the origin of the goods or services they import;
- the destination of the goods or services they export;
- the nationality of the person or the entity;- the existence of any agreement to which Ukraine is a party that has provisions which
relate to the activities of that person or entity?
Answer:
See the answer to question 134.
Question 136.
On what grounds can these privileges be revoked?
Answer:
The privileges can be withdrawn according to changes in legislation.
Question 137.
Do these privileges entail any particular legal obligation?Answer:
No, they do not.WT/ACC/UKR/50
Page 64
Question 138.
What products/services do these privileges cover?
Answer:
See the answer to question 134.
- Article II (Seasonal duties)
Question 139.
Why has it been necessary to define the coverage  of products that may be subject to seasonal
tariffs in such an all-encompa ssing manner, instead of defining product coverage in a more
targeted way, for instance, in terms of the HS 96 product nomenclature at six-digit level.
Answer:
Problems subject to seasonal duty are located within Groups 7 through 12 of the Harmonized
System. Designation on a four digit level is used where the whole group is subject to seasonal duty. A
nine-digit level definition is used where the seasonal duty is applied to specific goods only.
Question 140.
We would appreciate full details of the domestic harvesting and storage periods for all of the
products for which a seasonal duty provision is being made.
Answer:
The harvesting and storage period for potato and vegetable cultures are as follows:
The name of the produce The harvesting period The storage period Notes Potatoes
Potatoes 01.07 - 01.11 01.10 - 01.06*
Tomatoes 20.06 - 10.10 01.08 - 20.10 harvesting, storage
and reprocessing.
Onions 01.08 - 20.09 10.08 - 15.05*
Cabbage 15.06 - 01.11 01.10 - 01.06*
Roots (carrots, beet). 01.09 - 01.11 01.10 - 01.06*
*The storage period lasts until the next year.
Question 141.
As the first paragraph of this article has already established the principles for determining the
duration of the period for applying seasonal duties, we do not understand why it is necessary in
the fourth paragraph to arbitrarily impose a st atutory minimum period of sixty days.  What is
the reason for this?WT/ACC/UKR/50
Page 65
Answer:
The purpose of this measure is to provide for more transparency and certainty.The period of
seasonal duties is fixed by laws. As to the minimum validity period of seasonal duties, data given in
the table in the answer to question 140 shows the mi nimum harvesting and storage term to be 60 days.
Question 142.
As the first paragraph has already established the principles for determining the duration of the
period for applying seasonal duties, we do not understand why it is necessary in the third
paragraph to make the period of the application subject to the discretion of the Cabinet.  What
is the reason for this?  Why is it not possible  for their duration to be objectively determined
with reference to the principles set out in the first paragraph?
Answer:
The term of seasonal rates depends on the period of harvesting and storage of similar
Ukrainian produce. This, in turn, can be predicte d only after the growing cycle begins. Thus the
Cabinet of Ministers of Ukraine annually establishes the effective period of the seasonal rates for
agricultural produce and publishes the decision 45 days before its implementation.
Question 143.
We wish to clarify the meaning of the second paragraph.  Does this paragraph mean that the
seasonal duty applied during the designated ha rvesting and storage period will override all
margins of preference accorded  to Ukraine's partners in agreements to establish free-trade
areas, customs union, production cooperation agreements and other international agreements?
In other words, is it the case that all seasonal  duties will be applied on a most-favoured-nation
basis?
Answer:
Seasonal duties replace import duty rates, established in Article 6 of the Law during their
period of operation. This means that all seasonal rates are applied on the general basis of the most
favoured nation regime.
Question 144.
If this is correct, how will Ukraine reconcile this very wide coverage of exemptions to these
agreements and the increase in customs dutie s that will result with the following
GATT Article XXIV requirements:
- that the duty free products under free-trade areas and customs unions cover
substantially all trade;
- that customs duties and other restrictive regulations of commerce not be made more
trade restrictive as a result of the formation of a free-trade are or customs union?
Answer:
Seasonal rates are established for goods in the following group categories of the Commodity
Nomenclature of  the Foreign Activity: 07.01 - 07.08, 08.0610, 08.07.10, 08.08.10, 08.08.20,
08.09.10000, 08.09.20, 10.01-10.05, 10.08, 12.06- 12.08, 12.10, 112.12.91, 12.12.92, 12.13, 12.14.
They are calculated at preferential rates if they equal or exceed the 30 per cent rate.WT/ACC/UKR/50
Page 66
See also the answers to questions No.24, 25, 96.
Question 145.
Forty-five days for changing the period of validity of seasonal duties and the product coverage
of seasonal duties will not be sufficient to me et the transparency requirements of Article X of
the GATT 1994 and provide certainty for traders.  Th is is particularly so given that the period
of validity will depend on the period of harvesting and storage - something that will already beanticipated at the start of the cropping cycle.  A considerably longer period should be proposed.
Given the issues involved, 180 days would not be unreasonable.  We ask Ukraine to review this
provision.
Answer:
We believe that Ukraine applies the transparency requirements of GATT Article X by
requiring 45 days prior notification.  However, Ukraine will review the possibility of a longer period
of prior notification.
Question 146.
Regarding the fifth paragraph, Ukraine's seasonal du ties will need to be consistent with its tariff
binding commitments that are currently being negotiated.  Depending on the outcome of the
negotiations for different products, we anticipate  that the rate of 30 per cent would probably
exceed many of Ukraine's tariff bindings.  These is sues will need to be addressed in the bilateral
market access negotiations, and full details of seasonal duties will be needed for progress to be
made in the market access negotiations.  Also, Ukraine can expect to en counter resistance in the
Working Party to the broad coverage of seasonal tariffs it will be seeking, as well as requests for
objective information on the duration of the periods of harvesting and storage for all of the
products that are covered.
Will seasonal duties be set at levels that are within Ukraine's schedule of tariff binding
commitments or will Ukraine be seeking to incorp orate seasonal tariffs into its tariff bindings?
Answer:
Ukraine intends to apply seasonal tariffs within its tariff bindings.
See also the answers to questions 24, 25, 96, 140 and 141.
- Article III (Quotas)
Question 147.
This Article appears to result in the imposition of import quotas rather than tariff quotas.  Can
Ukraine confirm that this is their intention?
Answer:
Article 3 of the Law "Non-tariff Regulation of  Animal Industry Products", which envisages
the implementation of import quotas, is scarcely applied at present. Thus, Ukraine does not apply any
trade restrictions and does not violate GATT Articles II and XI.WT/ACC/UKR/50
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Question 148.
In order to accede to the WTO, Ukraine will be  required to remove all of these quantitative
restrictions, including its quotas on agricultura l products.  This article of Ukraine's law is
unacceptable, and will need to be deleted in order to achieve consistency with Article XI:1 of the
GATT 1994 and Article 4 of the Agriculture Agreement.
Answer:
See the answer to question 147.
Question 149.
In its accession, Ukraine has no right of access to Uruguay Round methodologies such as
tariffication of non-tariff measures.
Answer:
Will you kindly explain why Ukraine has no such right.
Question 150.
Ukraine's introduction of quotas in this law also represents a serious breach of the standstill on
new trade-restrictive measures that is expect ed of countries negotiating their accession.
Answer:
See the answer to question 147.
Question 151.
We seek clarification of the meaning of the four th paragraph.  Does this paragraph mean that
quotas will override all provisions relating to the products covered by them under Ukraine's
agreements to establish free-trade areas, customs union, production cooperation agreements
and other international agreements?
Answer:
Yes, the quotas form an exception (that is they have an "overriding force") to preferential or
privilege regimes, including free trade areas, customs union production cooperation agreements, and
other international agreements where the exceptions are recognised in such agreements.
See also the answer to question 147.
Question 152.
Can Ukraine explain how it sees auctioning of quotas as consistent with its future obligations
under Article II of the GATT 1994, given that th e tender premiums will impair Ukraine's tariff
bindings?
Ukraine considers that auctioning of quotas is consistent with its future obligations under
Article II of the GATT 1994.  Tender premiums will not impair tariff bindings of Ukraine because thepayments will be insignificant and will correspond to the auction expenses.WT/ACC/UKR/50
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Question 153.
For each of the products concerned, what is the quantity of access that Ukraine proposes to
make available for imports under quotas?
According to Law quotas may be set by the Cabinet of Ministers of no less than 10 per cent of
the Ukrainian production in the preceding year. They are authorised to be imposed on animal
products.  In reality, no quotas have been set.
- Article V
Question 154.
The translation of the paragraphs under this article is unclear.  In particular, we are unsure
whether the first paragraph is intended to en able some form of domestic price control.
Answer:
The article prohibits any restrictions on the distribution of agricultural products in Ukraine. It
also prohibits any prescription on the reprocessing or sale of agricultural produce, and it prohibitsminimum prices for such products.
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive Standards of Protection, Including Procedures for the Acquisition and
Maintenance of Intellectual Property Rights
(a) Copyright and related rights
Question 155.
In its answer to question 65 (WT/ACC/UKR/41) the Government of Ukraine gives details of a
new Article 136 of the Criminal Code which is meant to amend criminal sanctions in cases of
infringement of copyright and related rights.  In its answer to question 68, sanctions with
respect to infringements of industrial property are specified.  Please clarify whether remediesare foreseen which shall not only include the se izure but also the forfeiture and destruction of
the infringing goods (in cases of wilful trademark counterfeiting and copyright piracy) and of
any materials an impediments the predominant us  of which has been in the commission of the
defense.
Answer:
The draft Law of Ukraine "On Introduction of Changes and Additions to the Law of Ukraine
"On Copyright and Related Rights", which has already been approved by the relevant ministries and
agencies, and will be submitted to the Supreme Rada in 1998, provides for several remedies,
including seizure, forfeiture, and destruction of illegally produced works, phonograms and other
subject matters of copyright and related rights.
In particular, Clause 1, Part 2 of Article 43 of the above Law entitled "Methods of Judicial
Procedures in Cases Concerning Infringement upon Copyright and Related Rights" provides that:
"A court or a judge may also order a seizure or forfeiture of all copies of original works and
phonograms suspected of being counterfeit, as well as of materials and equipment intended
for production thereof".WT/ACC/UKR/50
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Clause 5 of Article 44 entitled "Methods of Protection of Copyright and Related Rights"
provides that:
"A court may order the forfeiture of counterfeit copies of original works and phonograms, as
well as of materials and equipment used for reproduction thereof.
At the request of a person holding a copyright or related rights, counterfeit copies of an
original work or phonogram may be turned over to such person. Counterfeit copies of originalworks and phonograms, as well as of materials and equipment used for reproduction thereof,
transfer of which has not been requested by a person holding a copyright or related rights,
shall be subject to destruction under a relevant court resolution".
Ukraine has drafted appropriate provisions for amending civil, administrative and customs
legislation with respect to the enforcement of rights for industrial property and related interests
(commercial secrets, integral chips topography, plant stocks) to ensure conformity with the
requirements of Articles 41-61 of the TRIPS Agreement.
Changes and amendments to the Laws of Ukraine "On Enforcement of Rights for Inventions
and Utility Models", "On Enforcement of Rights  for Industrial Designs",and "On Enforcement of
Rights for Trademarks for Goods and Services" have been drafted. They also include articles of direct
enforcement, which provide for such measures as arrest, confiscation, and destruction of goods
produced contrary to intellectual property rights.
Question 156.
Does the Government of Ukraine intend to amend its legislation on copyright and related rights
in order to grant full retroactive protection of  works (presently limited to works which were
released since 1 January 1973) and phonograms (no retroactive protection at all) as foreseen by
that TRIPS Agreement (in Articles 9 and 14.6 in conjunction with Article 18 of the BernConvention)?  Please also specify the po ssible timetable for such an amendment.
Answer:
The Government of Ukraine intends to amend its legislation on copyright and related rights in
order to grant full retroactive protection. However, an interim period of time will be required for the
enactment and implementation of the legislation. For example, Article 58 of the Constitution ofUkraine provides that laws and other normative acts shall not be applied retroactively. Therefore, the
national legislation of Ukraine on copyrights and related rights does not provide for retroactive
protection. However, Ukraine, being a member of the Bern Convention for the Protection of Literary
and Artistic Works, must observe provisions of Article 18 of the Convention. Ukraine’s willingness to
accede to WTO will require it to observe Articles 9 and 14.6 of the TRIPS Agreement.
Introduction of appropriate amendments to Ukrainian legislation is planned to take place
in 1999.
(e) Patents
Question 157.
Could the Government of Ukraine explain when the intended changes and amendments to bring
the patent legislation into conformity with the TRIPS Agreement, in particular Articles 31 and
2.1 in conjunction with Article 5.4 of the Paris Convention, enter into force.WT/ACC/UKR/50
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Answer:
Draft laws of Ukraine are being developed to change and amend the laws of Ukraine "On
Enforcement of Rights for Inventions and Useful Models", "On Enforcement of Rights for Industrial
Models", "On Enforcement Of Rights for Tradem arks for Goods and Services". These amendments
will satisfy requirements of Articles 15-21, 25, 26, 27-34 of the TRIPS Agreement, and in particular
provisions of the Articles 2.1, 31 of the TRIPS Agreement and Article 5.4 of the Paris Convention.
(g) Layout designs of integrated circuits
Question 158.
When will the draft law on "The Protection of Rights in Topologies of Integrated Chips" enter
into force?
Answer:
The Law of Ukraine "On Enforcement of Rights for Topologies of Integral Chips", adopted
by the Supreme Rada of Ukraine on 5 November 1997 came into force on 11 December 1997.
4. Enforcement
(e) Criminal Procedures
Question 159.
Could the Government of Ukraine provide information about criminal penalties that are
actually applied?
Answer:
Article 136 of the Criminal Code of Ukraine entitled "Infringement of Copyright" provides
that: "Production under own or another name by means of illegal appropriation of authorship of works
of science, literature or art held by other persons shall be punished by corrective labour for a term of
up to one year or a penalty of up to 500 UAH".
As is explained in the answer to question 160, the draft amendment to Article 136 of the
Criminal Code of Ukraine will establish complete compliance with Article 61 of the TRIPS
Agreement.
Criminal Code of Ukraine also includes:
- Article 137 which provides criminal punishment for illegal appropriation of copyrights, in
particular rights for inventions, useful models, industrial models, or for disclosure without
consent from the author of the content of the in vention, useful model, industrial model before
they were officially published;
- Articles 1486, 1487, which provide criminal punishment for the illegal use with the purpose
of further utilization, of information classified as commercial secrets, and the disclosure ofcommercial secrets.
There are no instances of criminal prosecution for the above crimes in recent years.WT/ACC/UKR/50
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5. Laws, Decrees, Regulations and Other Legal Acts Relating to the Above
Question 160.
In answer to question 69 (WT/ACC/UKR/41) as well as in answer to question 73, Ukraine lists
several draft laws which are actually under cons ideration.  Could the Government of Ukraine
please explain the main elements of each of the draft laws and specify their objectives in relation
to the TRIPS Agreement, i.e. what amendments are introduced to fulfil which obligation underthe TRIPS Agreement.  Please also provide a timetable for the completion of the respective
legislative processes and explain the steps which need to be taken before these processes are
concluded.
Answer:
The draft Law of Ukraine "On Introduction of Changes and Additions to the Law of Ukraine
"On Copyright and Related Rights", which will be submitted to the Supreme Rada in 1998, provides
for the following:
- in pursuance of Article 10 of the TRIPS Agreement "Computer Programs and Compilations
of Data" - two articles are added: Article 5.1 "Copyright for Computer Programs" and Article
5.2 "Copyright for Databases";
- in pursuance of Articles 42-50 and 61 of the TRIPS Agreement - additional civil law and
administrative procedures and measures to deal with infringements, provisional measures, andcriminal procedures are included in Article 43 entitled "Methods of Judicial Procedures in
Cases Concerning Infringement upon Copyright and Related Rights" and in Article 44
entitled "Methods of Protection of Copyright and Related Rights".
The draft Law of Ukraine "On Introduction of Changes and Additions to the Criminal Code
of Ukraine and the Administrative Code of Ukraine", approved by the relevant ministries anddepartments, under current consideration by the Cabinet of Ministers of Ukraine and expected to be
submitted to the Supreme Rada in 1998, incorporates the requirements of Articles 42-50 and 61 of the
TRIPS Agreement. In particular, it proposes amendment of Article 136 of the Criminal Code of
Ukraine to provide criminal responsibility (imprisonment for a term of up to three years) for illegal
use of works and subject matters of related rights. It also includes a new Article 164-9 entitled "IllegalUse of Works and Subject Matters of Related Rights" in the Administrative Code of Ukraine to
provide financial penalties (up to US$1,300) along w ith forfeiture of illegal copies of works and
phonograms, and of equipment for production thereof.
The drafting of the Law of Ukraine "On Legal Protection of Computer Programs" is already
taking place. The draft establishes a comprehensive approach for the protection of computerprograms. It incorporates the provisions of Article 10 of the TRIPS Agreement. Subsequent to the
approval of the draft by all relevant ministries and departments, it will be submitted to the Supreme
Rada in 1998.
The Supreme Rada of Ukraine is already considering draft laws of Ukraine "On Enforcement
of Rights for Indication of the Geographical Origin of Goods" and "On Changes and Amendments to
the Law of Ukraine "On Enforcement of Rights for Plant Stocks"". With respect to the Law of
Ukraine "On Enforcement of the Rights for Indication of the Geographical Origin of Goods", it isworth mentioning that currently there is no enforcement of rights for geographical indications in
Ukraine as it is required by the Articles 22-24 of the TRIPS Agreement. The above draft law takes
into account the requirements of Articles 22-24 and also includes provisions for direct enforcement in
order to comply with Article 50 of the TRIPS Agreement. It further includes articles creatingWT/ACC/UKR/50
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administrative, civil and criminal sanctions or remedies for breaching the rights in geographical
indications as is stated in Chapter III of the TRIPS Agreement.
Draft Law of Ukraine "On Changes and Amendments to the Law of Ukraine "On
Enforcement of the Rights for Varieties of Plants" has been amended in order to conform with the
provisions of the UPOV Convention (1991), which Ukraine intends to join. It also includes articles on
direct enforcement of the rights to plant stocks as required by Chapter III of the TRIPS Agreement.
These draft laws have passed the first reading, and are expected to be adopted by the Supreme
Rada of Ukraine in 1998.
Information about the compliance of Ukraine with the requirements of the TRIPS Agreement
is presented in the form of two tables included as separate documents with this document.
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