RESTRICTED
WORLD TRADE WT/ACC/RUS/13
23August 1996
ORGANIZATION(96-3307)
Original: English
ACCESSION OFTHE RUSSIAN FEDERATION
Additional Questions andReplies
ThePermanent Mission oftheRussian Federation hassubmitted replies toquestions raised
afterthemeeting oftheWorking Party heldon30-31 May1996, withtherequest thattheybecirculated
tothemembers oftheWorking Party. Thequestions andreplies arereproduced hereunder.
_______________
Question 1
Re.Question 4(WT/ACC/RUS/9) Since 8February 1996, thegoods andservices subject tofederal
price regulation have included vodka andliquors withastrength ofover28percentproduced
inorimported intoRussia. Does theRussian Federation expect thistobealong-term measure?
Answer
Under current economic conditions, Russia isnotplanning toabolish price regulation inthe
nearfuture withrespect tothespecified products.
Seetheseparate Russian Federation document onagriculture andnon-tariff measures.
Question 2
Re.Question 8(WT/ACC/RUS/9) Could wehavefurther clarification concerning the"maturity
date"? Inother words, what aretheconditions necessary forashare toberegarded ashaving
"reached itsmaturity date" andwhat aretheaverage periods usually necessary inthisrespect?
Answer
Theconditions andtimeframes forpreserving share holdings inState- andmunicipally-owned
companies differ depending onthesectoral affiliations ofsuchcompanies, theirsizes, etc.,andmay
bechanged byadecision oftheGovernment oftheRussian Federation (thebaseperiod forwhich share
holdings areretained infederal ownership isthree years).
Thegeneral principles fortheprivatization ofState-owned enterprises, andtheprocedures,
conditions, andtimeframes forkeeping theirshares infederal ownership areregulated by:
(a) theStateProgramme forthePrivatization ofState- andMunicipally-owned Enterprises inthe
Russian Federation (asapproved byRussian Presidential Decree No.2284, dated
24December 1993, andamended on14March 1996); andWT/ACC/RUS/13
Page2
(b) theBasic Provisions oftheProgramme forthePrivatization ofState- andMunicipally-owned
Enterprises After 1July1994 (asapproved byRussian Presidential Decree No.1535, dated
22July1995).
Question 3
Regarding theanswer 13ofWT/ACC/RUS/9, arethere additional criteria such asamount of
capital other thanthenumber ofemployees orequity share, todefine "small enterprises"?
Itisstated that"should asmall enterprise exceed thestaffing limit, suchenterprise shalllosethose
benefits which arestipulated bylegislation". Could Russia explain theprocedures forcutting
benefits? What arethebenefits granted tosmall enterprises?
Answer
According toFederal LawOnStatesupport forsmall entrepreneurship intheRussian Federation
No.88-FZ of16June1995 (submitted totheWTO Secretariat), Article 3,small entrepreneurships
areunderstood tobephysical persons engaged inentrepreneurial activity without establishing alegal
entity.
Small enterprises thatareengaged inseveral types ofactivity (multi profile) arecategorized
onthebasis ofthetypeofactivity theshare ofwhich isthelargest intheannual turnover orinthe
annual volume ofprofit.
Aseparate paragraph (paragraph 3)ofthatArticle stipulates thatifthesmall enterprise ata
certain point exceeds itssize,itloses thebenefits which thelegislation grants tosmall enterprises.
InaccordancewiththeabovementionedFederalLaw,severalbenefitstosmallentrepreneurships
areproposed, including;
- theintroduction ofasimplified procedure ofregistration, oflicensing ofactivity, ofthe
certification oftheproducts ofthesmall entrepreneurships, andofreporting totheState in
accordance withArticles 4,5oftheLaw(thedecision oftheGovernment oftheRussian
Federation Onthelicensing ofindividual types ofactivity of24December 1994 No.1418
isalsoinforce now);
- support fortheforeign economic activity ofsmall entrepreneurships isaimed atthecreation
offavourable conditions forsmall enterprises andentrepreneurs forthedevelopment offoreign
tiesandcooperation withforeign partners;
Article 15ofthelawdefines ingeneral terms theimplementation ofthemeasures byfederal
executive bodies andbyexecutive bodies ofthesubjects oftheFederation related tothe
participation ofsmall entrepreneurships inforeign economic activity andofreimbursement
forexpenses resulting from suchactivity;
- thearranging oftraining, re-training andadvanced training forpersonnel ofsmall enterprises
means thedevelopment bythefederal executive authorities andtheexecutive bodies ofthe
regional governments oftheRussian Federation, aswellasbylocalauthorities oftheappropriate
systems forproviding suchtraining. Article 18ofthisLawsetsoutthatnorm ingeneral terms;WT/ACC/RUS/13
Page3
- therulesoftaxation, ofproviding taxexemptions forthesubjects ofsmall entrepreneurship,
ofgranting grace periods andarrangements forpaying taxes byinstalments areestablished
inaccordance withtaxlegislation byArticle 9ofthesaidLaw;
- thespecial feature ofArticle 9isthattheArticle enables thesmall entrepreneurships during
thefirstfouryears oftheiractivity, incaseofanincrease inthetaxburden during thatperiod,
toapply thetaxrules which were ineffect atthetimeoftheirregistration withtheState.
Paragraph 2oftheArticle provides fortheestablishment bythelawsoftheRussian Federation
andregional governments oftheRussian Federation offavourable taxation treatment forsmall
enterprises andentrepreneurs thatpromotes thedevelopment ofthelegal system forthe
improvementofthetaxsystemintheRussianFederationwithaviewtocreatingmorefavourable
conditions forsmall entrepreneur ships; and
- inaccordance withArticle 10ofFederal LawNo.88-FZ, small entrepreneurships havethe
righttoaccelerated depreciation ratesforcapital assets, andarighttocharge expenses against
thecostofproduction ataratewhich istwice ashighastheratesthatwould otherwise apply.
Besides theapplication ofthemechanism ofaccelerated depreciation, small entrepreneurships
canadditionally write offasdepreciation upto50percent oftheinitial value ofcapital assets which
haveaservice lifeofoverthree years.
- Inaccordance withArticle 11oftheFederal Law, credit loans tosmall entrepreneurships are
provided onfavourable conditions withthefunding forlowcostloans provided through credit
organization through thegovernment. Theorganizations thatprovide credits tosmall
entrepreneurships onfavourable conditions enjoy benefits pursuant tothelegislation ofthe
Russian Federation andthelegislation ofregional governments.
- Inaccordance withArticle 13oftheFederal law,insurance forsmall entrepreneurships is
provided onfavourable terms. Theinsurance organizations thatprovide insurance forsmall
entrepreneurships enjoy benefits inconformity withthelegislation inforce.
Inaddition, theFederal Programme ofStateSupport forSmall Entrepreneurship intheRussian
Federation fortheperiod from1996to1997which wasapproved bytheDecision oftheGovernment
oftheRussian Federation of18December 1995No.1256provides forfinancing ofsmall enterprises
from thefederal andregional funds forthesupport ofsmall entrepreneurship andthepromotion of
competition.
Question 4
Re.Question21(WT/ACC/RUS/9)Theelementsofthesystemofgovernmentregulationofindustrial
production include incentives toattract investment. What specifically aretheincentive measures
involved?
Answer
Government incentives tostimulate investment activity inRussia include arange ofdifferent
measures andofgrounds fortheirapplication. Abrieflistwould include:
- taxandcustoms benefits (fullorpartial taxexemptions granted either withrespect tospecific
taxes orwithrespect totaxrecipients);WT/ACC/RUS/13
Page4
- government involvement inprivate capital financing (through asystem oftenders, theprovision
ofgovernment guarantees, theacquisition ofownership interests inthecapital ofprivate
companies, etc.);
- preferential credits (through authorized commercial banks);
- government orders tobuild specific facilities andtomanufacture specific products; and
- incentives toencourage keyprojects andinvestment inpriority areasunder special programmes
(thisincludes various combinations oftheabove incentives andbenefits).
Question 5
Re.Question 28(WT/ACC/RUS/9) Does Russia intend itsmechanism ofminimum guaranteed
purchase prices (foragricultural products, rawmaterials andfoodstuffs fortheneeds oftheState)
introduced in1995 tobemaintained overthelongterm?
With respect totheanswer toquestion 28,theminimum guaranteed price issetbytheMinistry
ofEconomy, theMinistry ofAgriculture andtheMinistry ofFinance. Could Russia indicate
which Ministry willmake thefinal decision?
Answer
Theproducers ofagricultural produce thatsellsuchproduce tomeet theneeds oftheState
settheirprices onthebasis ofagreement withthepurchasing agents. TheState guarantees tothem
prices which cannot dropbelow thatlevel. In1995thelevelofguaranteed prices wassetbythedecision
oftheGovernment oftheRussian Federation of10March 1995 No.240Oneconomic conditions of
thefunctioning oftheagro-industrial complex oftheRussian Federation in1995.
In1996, inaccordance withthedecision oftheGovernment oftheRussian Federation of
7February 1996No.135Onmeasures tostabilize theeconomic situation intheagro-industrial complex
oftheRussian Federation in1996 theMinistry ofEconomy ofRussia, theMinistry ofAgriculture
andFoodstuffs ofRussia andtheMinistry ofFinance ofRussia were charged withsetting thelevel
ofguaranteed prices which isrecorded intheprotocol ofagreement. Theprotocol ofagreement of
thethree ministries isthefinaldocument onthematter ofsetting theminimum guaranteed purchase
prices.
Itisplanned toextend theperiod during which theguaranteed purchase prices foragricultural
produce, rawmaterials andfoodstuffs fortheneeds oftheStatewillbeineffect asaformofsupport
fortheagricultural producer during theperiod oftheadaptation oftheagrarian sector tothemarket
economy.
Question 6
Re.Question 38(WT/ACC/RUS/9) Upuntil now, Russia hasnotsubmitted information on
domestic support andexport subsidy onagricultural products. According totheanswer tothe
answer 38ofWT/ACC/RUS/9, Russia hasbegun thework ofcalculating theAggregate
Measurement ofSupport.
Wewould liketodraw yourattention tothetechnical notebytheSecretariat titled Information
tobeProvided onDomestic Support andExport Subsidies inAgriculture (WT/ACC/4). This
notewasproduced tosupplement thenotebytheSecretariat titled Procedures forNegotiationWT/ACC/RUS/13
Page5
under Article 12(WT/ACC/1), especially itsrelevant part oftheOutline Format fora
Memorandum.
Although thisnoteondomestic support andexport subsidies inagriculture wasmade afterRussia
requested toaccede totheWTO, there isnoreason weshould notmake useofthisnote, because
itisveryuseful both foranacceding country andWTO Members. Therefore, wewould like
torequest Russia tosubmit relevant information following theguidance ofthisnote.
Answer
TheRussiandelegationwillprovidetheWTOSecretariatwithadocumentonagriculturalpolicy,
which includes datanormally required bydocument WT/ACC/4.
Question 7
Re.Question 41(WT/ACC/RUS/9) Could wehave further details ontheFederal exports
development programme uptotheyear2005 (content, objectives, specific measures proposed
forensuring thetransparency oftheprovisions)?
Answer
TheFederal Programme forthedevelopment ofexports untiltheyear2005 isaimed at:
- increasing thevalue ofthevolume ofRussian exports; and
- increasing theshare ofexports ofengineering, technological andscience-intensive products.
Toachieve those aims, theprogramme provides for:
- thedevelopment ofthemechanism ofStateinsurance ofexport operations frompolitical risks;
- theestablishment, withtheassistance oftheState, ofasystem ofinsurance related toexport
operations toprotect suchfrom long-term commercial risks;
- thedevelopment ofthemechanism ofState guarantees withtheaimofattracting foreign
investments fortheexpansion ofRussian export-oriented production;
- theproviding ofStatesupport toimprove access forRussian goods toworld markets bymeans
ofproviding assistance inconducting marketing research, dissemination ofinformation ontrade
legislation offoreign countries; providing information onthecurrent international regime for
trade andtheprovisions oftheWTO, etc.;
- theproviding ofStatesupport fortheprevention andsettlement ofinternational tradedisputes;
and
- theexercising ofState support forthetraining andeducation ofpersonnel forthesphere of
foreign economic relations.
Intheopinion oftheRussian delegation suchmeasures areinconformity withtheAgreement
oftheWTO onSubsidies andCountervailing Measures, aswellaswithother agreements andprovisions
oftheWTO.WT/ACC/RUS/13
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Question 8
Re.Question 60(WT/ACC/RUS/9) When doesRussia intend tomake useoftheappropriate
implementation provisions oftheWTO Agreement onSubsidies andCountervailing Measures
(inparticular the"non-actionability" criteria ofArticle 8.2)?
Answer
TheRussian Federation intends torespect theprovisions ofArticle 8.2oftheWTO Agreement
onSubsidies andCountervailing Measures withrespect toconduct byother WTO members fromthe
moment ofheraccession totheWTO. Whether, orforhowlong, theRussian Federation willrequire
atransition period under Article 29ofthatWTO Agreement isstillunder consideration.
Question 9
Re.Question 64(WT/ACC/RUS/9) What arethetypes andthenumber ofenterprises forming
partofthe"limited number ofenterprises which should benotified totheCouncil forTrade in
Goods"?
Answer
ApreliminarylistofsuchenterprisesisprovidedinAnswer12ofWT/ACC/RUS/9.Anupdated
listwillbesubmitted atalaterdateoncealldatahasbeencompiled.
Question 10
Re.Question 67(WT/ACC/RUS/9) According toFederal LawNo.174-FZ, fortheestablishment
ofcommercial organizations with foreign investment involved inconstruction, expansion and
technical renovation projects itismandatory tohavepassed theStateecological expert examination.
Exactly what doesthisexamination involve?
Answer
Articles 11,12,and14oftheFederal LawOnEnvironmental Expert Assessments, dated
19June1995, require Stateenvironmental expert assessments for"materials regarding theestablishment
oforganizations bynationals orlegalentities oftheRussian Federation withtheinvolvement offoreign
nationals orforeign legalentities."
Thedocuments which aretobesubmitted foraState environmental expert assessment tothe
Russian Federation Ministry fortheProtection oftheEnvironment andNatural Resources during the
establishment andregistration ofthose enterprises withtheprovision thereto ofrights toundertake
business andusenatural resources theamount offoreign investment inwhich exceeds $500,000 include:
- written application foranexpert assessment ofmaterials regarding therespective enterprise;
- notarized copies ofitsfoundation documents (thecharter andtheagreement ontheestablishment
ofthejointventure, which must include thechapter "Environmental Protection");
- certificates ofincorporation oftheRussian legalentities andtheirforeign partners which are
founding theenterprise;WT/ACC/RUS/13
Page7
- feasibility studies regarding theestablishment oftheenterprise, which mustinclude thechapter
"Ecological Substantiation";
- letter ofconsent fromtheregional committee fortheprotection oftheenvironment andnatural
resources;
- letter ofconsent from theregional administration;
- letter ofconsent fromtheregional agency oftheStateservice forsupervision oversubsoil uses;
and
- copyofthefounders 'licences tousesubsoil (ifevenoneofthefounders hassuchalicence)
andtoundertake specific activities.
Thelistofdocuments tobesubmitted forStateenvironmental expert assessments totheRussian
FederationMinistryfortheProtectionoftheEnvironmentandNaturalResourcesduringtheestablishment
andregistrationofthoseenterprises,theamountofforeigninvestmentinwhichdoesnotexceed$500,000
issimilar totheabove list,butisestablished byregulatory legalactsoftheRussian Federation 'sregional
governments.
Russian enterprises havetoundergo asimilar procedure forundergoing State environmental
expert assessments. Thelistofrequisite documents isalsodetermined bythetypeoftherespective
enterprise andthenature oftheimpact itsoperations haveontheenvironment.
Question 11
Re.Question 69(WT/ACC/RUS/9) Russia hastaken several measures toprotect foreign investors
from criminals. These include adraft federal lawonthelegalization ofcriminal incomes. What
arethespecific provisions ofthislaw(inparticular asregards money laundering) andwhen does
Russia expect thisnewlawtobefinally adopted? Inaddition, what concrete measures havebeen
taken bytheMinistry oftheInterior toprovide greater protection fornational andforeign
entrepreneurs?
Answer
ThedraftLawOnLiability forLaundering Criminal Income stillhastobefinalized, which
iswhyitisnotpossible toforecast whatwillbethefinalprovisions andwhen itwillbeenacted by
theState Duma oftheRussian Federation.
Question 12
Re.Question 91(WT/ACC/RUS/9) How willthenewLand Code under consideration modify
theprovisions currently inforce?
Answer
TheStateDuma oftheFederal Assembly oftheRussian Federation on22May1996adopted
onthethirdreading, theLand Code oftheRussian Federation. However, theFederation Council has
rejected theLandCode. Toreconcile thedifferences, aconciliatory commission hasbeenformed which
willbeconcerned withenhancing theprotection ofpeasants 'rights tolandshares, promoting land
turnover, andbringing intocompliance withtheConstitution oftheRussian Federation, legalprovisionsWT/ACC/RUS/13
Page8
related tothedivision ofauthority between theRussian Federation anditsterritorial subjects withrespect
toregulation oflandrelations andother issues. SeealsoAnswer 14(WT/ACC/RUS/9).
Question 13
Re.Question 99(WT/ACC/RUS/9) Inthecourse ofafewdays (from 6Mayto12May1995)
theweighted average rateofimport duties onfood products went upfrom 11.46 percentto
15.32 percent. WhydoesRussia mention thisspecific increase when thequestion relates primarily
toanaverage increase andwhat istheexplanation, ingeneral terms, fortheincrease inimport
duties?
Answer
Thetextofquestion 99ofWT/ACC/RUS/9 related onlyandsolely totheincrease ofimport
tariffs foragricultural products. Inthissense, Answer 99presented bytheRussian delegation in
WT/ACC/RUS/9 isfullyinaccordance withtheformulated question.
Thechanging ofimport tariff ratesinRussia, aselsewhere, isinfluenced bymany different
andcompeting factors suchastheneedforgovernment revenue, theprovision oftransparent measures
forthepreservation ofnational industry, aswellastherequirements fortheintegration ofthenational
economy intothesystem ofworld economic relations.
Itshould alsobepointed outthatfrom theintroduction ofnewimport tariffs inRussia
(6May1995) various ratesofduties havebeenreviewed, andinsome cases reduced toreflect the
ongoing structural adjustments insectors oftheRussian economy.
Question 14
Re.Question 111(WT/ACC/RUS/9) Could wehave more information concerning theopening
upofthegovernment procurement market toforeign tenderers?
Answer
There isatpresent, nostatutory general preference ineffect forRussian suppliers which applies
toallsectors.InArticle4ofRussianGovernmentDecisionNo.549,of26June1995OnthePreparation
andConclusion ofStateContracts forthePurchase andDelivery ofProducts forFederal StateNeed,
itisstipulated thatallparticipants inafederal tender forStateneeds aretoparticipate onequal conditions
andtobenefit fromopenness inthetendering process. However, Article 20ofthesame Decision does
provide thatStatecontracts aretoprovide interalia,forthedevelopment ofdomestic production capacity
inlinewithgovernment policy, aswellasthemaintenance ofnational defense capabilities.
There arecurrently ineffect certain preferences forthepurchase ofdomestically produced
farmproducts, rawmaterials andfoodstuffs forgovernment useunder theprovisions oftheLawOn
Purchases andDeliveries ofFarm Products, RawMaterials andFoodstuffs toMeet State Needs of
2December 1994. Likewise, when foreign construction companies wintenders tobuild facilities with
Russian government financing, theRussian Government Decision No.531of8June1993 Onthe
Streamlining intheRussian Federation oftheConstruction ofFacilities attheExpense ofStateForeign
Currency Funds andStateForeign Investment Credits stipulates thatamaximum amount ofequipment
andmaterial produced intheRussian Federation should beemployed bysuchcontractors, andthat
notlessthan30percentoflabour andother service contracts should beawarded toRussian
subcontractors.WT/ACC/RUS/13
Page9
Question 15
Re.Question 120(WT/ACC/RUS/9) Does Russia envisage amending, inthemedium term, its
strict prohibition onforeigners manufacturing narcotics?
Answer
No.Article 5ofChapter 1ofthedraftFederal LawOnNarcotic Drugs andPsychotropic Agents
provides for"theStatemonopoly inthedevelopment, production andmanufacture...of narcotic drugs".
Question 16
Re.Question 123(WT/ACC/RUS/9) Could Russia explain themeaning "applied indirectly"?
When applied indirectly, aretheyRussian standards orharmonized standards?
Could Russia alsointhiscontext provide information onwhat rules itapplies toorintend to
introduce onfoodadditives. HasRussia drawn upalistofallowed orprohibited additives, and
insuchcase, what aretheadditives onthelist?
Answer
Asfarastheapplication ofinternational standards isconcerned, theRussian Federation acts
inaccordance withGuide ISO/JEC 21,"Adoption ofInternational Standards inNational Standards."
ThedirectuseofinternationalstandardsintheRussianFederationmeanstheadoptionasStatestandards,
ofRussian translations oftheauthentic textsofinternational standards, withorwithout theestablishment
ofadditional requirements reflecting thespecific needs ofthedomestic economy.
Dataregarding theuseofaninternational orregional standard asaStatestandard oftheRussian
Federation ispublished inthepreamble onthebackoftherespective standard 'stitlepage.
Theindirect useofinternational standards intheRussian Federation means theincorporation
ofindividual provisions from suchinternational standards during thedrafting ofState standards.
Alloftheabove-mentionednormativedocumentsonstandardsareharmonizedwithinternational
standards.
TheState Committee onSanitary andEpidemiological Supervision (Goskomsanepidnadzor)
hasapproved the"Food Additives" supplement tothe"Medico-biological Requirements andSanitary
Norms fortheQuality ofRawFood Materials andFoodstuffs," which includes aListoffoodadditives
permitted tobeusedinthefoodindustry intheRussian Federation, aListoffoodadditives notcovered
byauthorizations permitting theuseoffoodadditives inthefoodindustry oftheRussian Federation,
andaListoffoodadditives prohibited foruseinthefoodindustry oftheRussian Federation. Upon
accession toWTO, appropriate notification willbemade under theAgreement ontheApplication of
Sanitary andPhytosanitary Measures.
Question 17
Re.Question 125(WT/ACC/RUS/9) When referring to"international regulations" doesRussia
mean theCodex Alimentarius? Ifnot,what other international regulations arereferred to?WT/ACC/RUS/13
Page10
Could Russia provide more detailed information about theLaw ontheQuality andSafety of
Foodstuffs andthetimetable foritsadoption andplanned entry intoforce. Inparticular wewould
liketoknow:
- Does thisdraft lawforesee theremoval ofpre-market third-party certification?
- Willitapply toallfoodstuffs orjustcertain specified product areas?
Answer
The“internationalregulations”weremeanttoincludetheCODEXALIMENTARIUSstandards,
theISOstandards, theCEN standards, andtheUNECE rules.
AdraftLawOntheQuality andSafety ofFoodstuffs isslated tobeexamined bytheGovernment
inthefourth quarter of1996.
ThedraftLawprovides forthecertification offoodstuffs bythebodies andagencies ofState
inspection, aswellasbythebodies oftheGosstandart ofRussia engaged inthecertification ofquality
andsafety. Itisassumed thatthesaidLawwould cover allfoodstuffs, perfumes andcosmetic products.
Thecurrent rulesforthecertification offoodstuffs andunprocessed foodprovide forpre-market
certification, andthisrequirement continues tobeineffect.
Question 18
Re.Question126(WT/ACC/RUS/9)CouldRussia(i)clarifywhatthe"supplement"ofinternational
standards means, (ii)explain how these modified international standards areapplied and,
specifically, towhat sectors theyapply?
Could Russia bemore specific initsanswer anddescribe theextent towhich, andinwhich sectors,
international standards areeither referred toormaybefollowed byproducers inorder toconform
toRussian regulations. CanRussia alsoidentify thesectors inwhich deviations from international
standards exist?
Russia states thatbytheyear2000national standards inconformity withinternational standards
willaccount for50percentofallfederal standards applied inRussia. Could Russia indicate
what sectors willbegiven priority inorder toreach thisgoal?
Answer
Inaccordance withGuide ISO/JEC 21,"supplements" tointernational standards (technical
deviations) areunderstood tomean additional requirements reflecting thespecific needs ofthedomestic
economy.
International andregional standards (once theRussian Federation hasacceded tothem) are
usedonitsterritory asState standards.
They apply toitems subject tostandardization inanysector ofthedomestic economy. Insome
industries (electrical engineering, theaerospace industry, andtheautomotive industry), therateof
harmonization withinternational standards stands ataround 70percent.WT/ACC/RUS/13
Page11
Ifanapplicable international orregional standard refers toanyother international orregional
standards which arenotusedintheRussian Federation andifthere arenoequivalent Statestandards,
then,before suchstandard isenforced, theissueisdecided whether tousethose international orregional
standards towhich itrefers.
Itispermitted tomanufacture andexport Russian products inaccordance withtherequirements
ofinternational andregional standards, thenational standards ofother countries, orthestandards of
foreign firms, asrequested bythespecific foreign consumer (customer), onacontractual basis.
UndercertificationrulesineffectinRussia,conformityassessmentsarecarriedoutinaccordance
withrequirements setbyRussian standards. Thus, ifaninternational standard isusedasaRussian
standard, itmaybeusedbyamanufacturer tocomply withRussian regulations.
Thefollowing areas ofstandardization havebeenchosen aspriorities fortheperiod untilthe
year2000:
- thesafety ofproducts, services, andproduction processes fortheenvironment, public health,
andhuman life;
- labour protection, improvements inworking conditions, andthecultivation ofaconvenient
living environment forthehandicapped;
- information technologies; and
- resource conservation.
These priorities areconsistent withdocuments oftheUNEconomic Commission forEurope.
Question 19
Re.Question 131(WT/ACC/RUS/9) Could Russia provide more detailed information about the
Principles Governing theMutual Recognition ofCertification andinparticular on(i)thetypes
ofconformity results accepted, and(ii)theconditions forrecognition ofthird country bodies and
their conformity assessment?
Answer
Inorder toensure thatconformity certificates andmarks areaccepted abroad, thecertification
rulesandrecommendations ineffect intheRussian Federation correspond tothose international norms
andruleswhich aresetforthintheISOandIECguides, theinternational ISO9000and1000standards,
theEuropean 45000 and29000 standards, anddocuments ofother regional certification organizations.
Foreign conformity assessment bodies 'andtestlaboratories 'accreditation, aswellasforeign
conformity certificates andmarks, arerecognized inRussia (andcomparable Russian accreditation,
certificates, andmarks areaccepted abroad) onthebasis ofmultilateral andbilateral agreements to
which theRussian Federation isaparty.
Question 20
Re.Question 133(WT/ACC/RUS/9/Add.2) Russia 'sanswer covers onlythefirsttwopoints in
question no133. Wewould likeinformation alsoonthelasttwopoints:WT/ACC/RUS/13
Page12
- thetypes ofrisks which thecertification procedure isaddressing;
- thenature oftheconformity assessment procedure (e.g. inspection, production oftest
reports, product type-approval, quality systems certification, orcombinations ofthese).
Could Russia provide uswiththetextofLawNo.2 FZOntheProtection ofConsumers 'Rights
of9January 1996?
Answer
Statutoryrequirementsorstandardsconcerningconsumerandenvironmentalsafetyaimtoprevent
damage toconsumers 'property, aswellasfacilitate consumer safety. Theproducts which aresubject
tosuchrequirements must becertified inaccordance withtheestablished procedure.
Thenature ofcertification schemes andtheirdescriptions aretobefound inthecertification
rulesentitled Procedure forProduct Certification intheRussian Federation (already submitted tothe
WTO Secretariat).
ThetextofRussian LawNo.2-FZ OntheProtection ofConsumers 'Rights hasalsobeen
submitted totheWTO Secretariat.
Question 21
Re.Question 134(WT/ACC/RUS/9) Could Russia provide further details onthescope andtiming
ofthedraft LawonChanges onAdditions totheRussian Federation LawontheCertification
ofProducts andServices?
Answer
ThedraftLawOnChanges andAdditions totheRussian Federation LawOntheCertification
ofProducts andServices istobeexamined bytheGovernment inthefallof1996, afterwhich itwill
beputbefore theStateDuma. After thedraftLawisenacted, thetextofthenewLawwillbesubmitted
totheWTO Secretariat.
Question 22
Re.Question 135(WT/ACC/RUS/9) According toourinformation there exists noRussian law
regulating theresponsibility oftheproducer, anyrules directed towards products assuch. The
Russian Committee onCommerce, exercising control through theState Trade Inspectorate, also
seems tohaveaverylimited responsibility ("issues explanation ...inresponse toqueries"). Could
Russia explain (i)inmore detail howtheState Trade Inspectorate exercises itscontrol function,
(ii)iftheCommittee 'sstatute covers actions directed towards bothproducts andproducers and
(iii)iflegal sanctions areavailable totheCommittee orInspectorate?
Answer
TheRussian Federation doesnothaveaseparate lawonmanufacturers 'liability. Buttheliability
ofmanufacturers isdetermined partly bytheLaws OntheProtection ofConsumers 'Rights andOn
theCertification ofProducts andServices, inother laws, andintheCivil andCriminal Codes.
Atpresent, theFederal LawOntheprotection ofconsumer rights isineffect inRussia. The
Lawregulates therelations among consumers andproducers, executors, andsellers intheprocess ofWT/ACC/RUS/13
Page13
selling goods; itestablishes therights ofconsumers tothepurchasing ofgoods ofproper quality and
safeforthelifeandhealth ofconsumers, thecollection ofinformation ongoods andontheirproducers,
anddetermines theresponsibility ofproducers.
Oneoftheorganizations thatexercises control overtheimplementation ofthisLawistheState
Inspectorate onTrade, Quality ofGoods andtheProtection ofConsumer Rights (Gostorginspektsia)
oftheCommittee oftheRussian Federation onCommerce (Roskomtorg) which, inaccordance with
Article 43ofthesaidLaw, isentitled toimpose finesontheproducer forfailing toimplement orto
implement intimeitsinstructions, aswellasforcausing damage toconsumers bygoods which do
notcorrespond tosafety requirements, forthesaleofgoods, including imports, without certificates
confirming theircompliance withthemandatory requirements.
Gostorginspektsia, inaccordance withtheRegulations approved bytheDecision ofthe
Government oftheRussian Federation of27May1993 No.501exercises control overcompliance
withthenorms andtherulesoftrading, andthequality andthesafety ofconsumer goods. Theobjects
ofcontrol bytheGostorginspektsia aretheenterprises, agencies, organizations irrespective oftheform
ofownership, andcitizens whoareengaged inselling andproducing goods.
Therules forthesaleofindividual types offoodstuffs andnon-foodstuffs shallbeapproved
bytheGovernment oftheRussian Federation.
Theestablished violations oftherulesoftrading, thesaleofgoods ofimproper quality orin
violation ofsanitary andother rules arepunished bythebodies oftheGOSTORGINSPEKTSIA of
theROSKOMTORG inaccordance withtheRSFSR Code OnAdministrative Offences byapplying
measures ofadministrative penalty suchasimposing afineontheguilty persons.
Question 23
Re.Question 136(WT/ACC/RUS/9) Could Russian relate itsanswer thatthe"Russian legislation
does notrecognize mandatory standards" tothepresent situations within, forexample, the
automobile sector, where there isinpractice nochoice between Russian standards andothers?
Answer
State standards areindeed nolonger mandatory inaccordance withRussian legislation (Law
OnStandardization, dated 10June1993).
However, inaccordance withClause 2ofArticle 7ofthisLaw, "those requirements which
areestablishedbyStatestandardstoensurethesafetyofproducts,work,andservicesfortheenvironment
andforthelife,health, andproperty ofconsumers, andalsotoensure thetechnical andinformation
compatibility andinterchangeability ofproducts, theuniformity ofmethods fortheirtesting, andthe
uniformityofmarkings,aswellasotherrequirementsestablishedbylegislationoftheRussianFederation,
shallbeobligatory forgovernmental administrative agencies andeconomic agents."
Theconformity ofproducts andservices tosuchrequirements ofStatestandards isdetermined
inaccordance withtheprocedure established bylegislation oftheRussian Federation ontheobligatory
certification ofproducts andservices.
Other requirements made byStatestandards onproducts, work, andservices mustatalltimes
beobserved byeconomic agents ifthisisdictated byacontract orbythetechnical documentation of
themanufacturer (supplier) oftheproducts, theperformer ofthework, ortheprovider oftheservices.
Theconformity ofproducts andservices totherequirements ofState standards maybedeterminedWT/ACC/RUS/13
Page14
inaccordance withtheprocedure established bylegislation oftheRussian Federation onthevoluntary
certification ofproducts andservices.
Asfarastheautomotive sector isconcerned, theRussian Federation hasacceded to72rules
oftheUNEconomic Commission forEurope Committee onInternal Transport which areapplied in
Russia directly bythecover method inaccordance withGuide 21.Inaddition, theRussian Federation
hasStatestandardsineffectregulatingthecertainspecificrequirements(whicharemostlyduetoRussia's
distinctive natural andclimatic features) formotor vehicle useinthecountry.
Question 24
Itissaidthatageneral review oftariff rates isplanned inthesummer ofthisyear. Itisnot
desirabletochangetariffratesfrequentlyduringthecourseofaccessionnegotiations.Inparticular,
raising tariff rates isnotdesirable. Inthiscontext, could Russia explain itsviews onwhat year
should bedesignated asthebaseyearforthebaserates fortariff negotiations?
Answer
Nogeneral revision ofimport tariffratestookplaceinthesummer ofthecurrent yearinRussia.
However, under thecurrent economic conditions, Russia hadtomake several amendments todifferent
tariff lines, including fullremoval ofexport duties. Astothequestion about thebaseyearforbase
ratesforthenegotiations ontariffs, theanswer tothatquestion willbeformulated inthecourse of
thecorresponding bilateral consultations andnegotiations which Russia intends toembark uponatthe
earliest opportunity.
Question 25
Clarification withregard tothediscrimination ofexcise taxes imposed onalcoholic beverage and
tobacco:
(a) Please explain theoutline oftheexcise taxsystem imposed onalcoholic beverage and
tobacco, bothfordomestically produced onesandimported ones(e.g.regarding eachkind
ofalcoholic beverage andtobacco, what kindoftaxes areimposed withwhat taxrates).
Iftheexcise taxes arenotimposed onlyonalcoholic beverages andtobacco, butoncertain
selected items asindicated inRussia 'sreply inWT/ACC/RUS/9, what arethereasons
forimposing excise taxes ononlycertain selected items? Andwhat aretheadvalorem
equivalent percentages ofspecific taxes levied totheimported items? Please indicate the
HSnumber ofeachitems onwhich excise taxes areimposed.
(b) Weunderstandthattheexcisetaxratesimposedondomesticalcoholicbeverageandtobacco
aredifferent from those imposed onimported onesby"some technical reasons" forthe
collection ofthetaxes. Ifitisso,what arethose "technical reasons".
(c) Itwasexpressed byRussia thatthediscrimination istobecutdown byadjustment of
taxrates. Please explain concretely howtoadjust therates.
Answer
Pursuant tocurrent legislation onexcise taxes, which isalsoapplicable todomestic alcoholic
andtobacco products, advalorem rateshavebeenintroduced (asapercentage ofthecostofthegoods
attheselling price taking intoaccount theexcise). With respect toalcoholic andtobacco products
imported intotheRussian Federation, therehavebeenintroduced specific excise ratesinfixedmonetaryWT/ACC/RUS/13
Page15
units(ECU) fordefined quantities ofgoods. Interms ofaggregate amounts, excise taxes onimported
goods, asarule,donotexceed those onanalogous domestic goods.
Theexistence ofdifferent excise rates(advalorem andspecific) isexplained bythefactthat
theexcisable turnover ofdomestic goods isdetermined onthebasis ofestablished excise ratesand
selling prices which incorporate theamount ofexcise tax,andwithrespect toimported goods, the
excisable basevalue usedforexcise calculation isthecustoms value ofgoods determined without account
ofexcise taxes.
AdraftLawiscurrently being considered bytheState Duma oftheRussian Federation on
excise taxwhich provides forauniform method ofexcise taxcollection andintroduction ofuniform
excise ratesforbothdomestic goods andgoods imported intotheRussian Federation.
Question 26
Arethere policies orpractices followed byState trading enterprises, atcentral orsub-federal
level, withtheaimofencouraging purchase ofdomestically produced goods, oranylimitations
onincorporation ofimported product? Ifso,what arethedetails ofthearrangements andin
which sectors dotheyapply? Arethere anyquantitative restrictions placed onsuchenterprises
ontheimport orexport ofproducts?
Answer
Thisquestion willbeanswered infullupon completion ofthequestionnaire onState-trading
enterprises. Forissues related togovernment procurement seeAnswer 14herein.
Question 27
What aretheprocedures forfixing andchanging theimport duties?
Answer
AnyRussian participant inforeign economic activity hastherighttointroduce proposals on
theestablishment of,orachange in,import dutyrates. Forthat,heshould present hisproposals
accompanied byadetailed feasibility study totheMinistry ofForeign Economic Relations, theMinistry
oftheEconomy, theMinistry ofFinance, StateCustoms Committee ofRussia andtotheministry or
agency ofthecorresponding industry. TheMinistry ofForeign Economic Relations ofRussia would
thereafter prepare acombined resolution andpresent itforconsideration totheCommission ofthe
Government oftheRussian Federation forCustoms andTariff Issues.
Incaseofapositive decision bythatCommission, theMinistry ofForeign Economic Relations
ofRussia would prepare adraftofacorresponding decision oftheGovernment andsubmit ittothe
Government oftheRussian Federation which would takethefinaldecision.
Thisprocedure isdescribed indetail inthedecision oftheGovernment oftheRussian Federation
of28April1995No.436OntheCommissionoftheGovernmentoftheRussianFederationforCustoms
andTariff Issues which wassubmitted totheWTO Secretariat.WT/ACC/RUS/13
Page16
Question 28
Please provide thelegislative procedures which canandwillconsider andpassthelegislations
onAnti-dumping andCountervailing Measures andtheSafeguards Measures. Isitdifferent from
thestandard procedures fordomestic law?
Answer
Theprocedures fortheintroduction ofsafeguard, anti-dumping andcountervailing measures
aresetforthinArticle 18oftheFederal LawOntheState regulation offoreign trade activity andin
theProcedure ofconducting investigation prior totheintroduction ofprotective measures. Both
documents havebeensubmitted totheWTO Secretariat. Theprocedures foradopting these lawsdo
notdiffer from theusual procedures inRussian law.
Question 29
Intheevent thatnewlegislations ontheAD/CVD andSafeguards isinconsistent totheWTO
rules, howdoesthesystem dealwiththeamendment andwhich rules supersede intheevent of
persistent conflict?
Answer
Intheopinion oftheGovernment oftheRussian Federation, Legislative andother normative
actsthatareineffect inthatsphere inRussia arenotinconsistent withtheprovisions ofArticles VI,
XVIandXIXoftheGATT 1994, aswellastotheprovisions ofthecorresponding agreements ofthe
WTO.
Indeveloping further legislation related tothesafeguard, anti-dumping andcountervailing duty
measures, Russia intends tocontinue tobeguided bytheappropriate rulesanddisciplines oftheWTO.
Forinstance, adraftFederal LawOntheprotection oftheeconomic interests oftheRussian Federation
inexercising foreign tradeingoods, thathascompleted itsthirdreading intheStateDuma will,when
enacted, further elaborate thelegalnorms ofthedocuments listed intheabove Answer 28andalso
willnotbetoinconsistent withtherequirements oftheWTO Agreements.
Question 30
Inanswering Questions 234-238 (WT/ACC/RUS/2), theanswer stated thattheLawonCustoms
Tariffs initspresent form cannot bedirectly applied forAD/CVD. What measures areinstalled
tohandle thematter andhowaretheyadministrated, though themeasures have never been
invoked?
Answer
Thelegislative andnormative actsreferred inAnswer 28above wereapplied andimplemented
bytheCommission oftheGovernment oftheRussian Federation onProtective Measures inForeign
Trade in1996during thecourse ofconducting aninvestigation intowhether serious injury wassuffered
bythedomestic industry asaresult ofincreased imports ofspecific categories ofgoods. Documents
onnon-tariff measures, submitted totheFourth Session oftheWorking Party onRussia 'sAccession
totheWTO, contain information ontheresults ofthose investigations.WT/ACC/RUS/13
Page17
Question 31
Toobtain thesanitation certification, imported goods maybesubjected toan"expert study"
undertaken bytheRussian State Sanitation Committee. Please provide details ontheprocedures
ofsuchstudy and,ifany,what aretheoperational framework, particularly withrespect totime
andcost, thatthestudy follows?
Answer
ThecorrectnameofthecertificateissuedbytheagenciesoftheStatesanitaryandepidemiological
service oftheRussian Federation istheCertificate ofHygiene (acopyofwhich hasbeensubmitted
totheWTO Secretariat). Thedetails oftheprocedure ofdrawing upthecertificate ofhygiene areset
forthintheRegulations ontheprocedure related totheissuing ofcertificates ofhygiene forproducts
thatwasapproved bytheDecision oftheStateCommittee onsanitary andepidemiological inspection
ofRussia of05.01.93 No.1(submitted totheWTO Secretariat).
Question 32
With respect totheissuance ofsafety certificates (Questions 341-343 ofWT/ACC/RUS/2), please
clarify theprocedures usedforthepurpose ofcertifying imported goods, particularly withregard
tothechecking andsampling techniques?
Answer
Theprocedures usedduring thecertification ofimported goods aresimilar tothose usedfor
thecertification ofRussian-made products. Adescription ofsuchprocedures istobefound inthe
Procedure forProduct Certification intheRussian Federation. Seeanswer 20above.
Question 33
Isthere anyrequirement onlabelling forgoods andfoodstuff imported forconsumption inthe
Russian Federation? Ifso,isthere anydifference from therequirement forlocal products?
Answer
Thelabelling requirements forgoods andfoodstuffs imported totheRussian Federation are
similar tothose requirements which apply toRussian-made products.
These requirements aredetermined byArticle 10oftheFederal LawOnChanges andAdditions
totheRussian Federation LawOntheProtection ofConsumers 'Rights adopted on9January 1996
andbytheRSFSR Code OnAdministrative Offenses, adopted on20June1984 inaccordance with
which alabelmust contain thefollowing data:
- designations ofstandards towhose requirements theproduct must conform;
- inthecaseoffoodstuffs, dataregarding theircomposition, i.e.thelistofother products and
foodadditivesusedintheirproduction,theirweight,volume,andcalorificvalue,andthecontent
ofnoxious substances compared withtheobligatory requirements ofapplicable standards, as
wellascontraindications forthose suffering from specific diseases;
- rules andconditions foreffective andsafeuse; andWT/ACC/RUS/13
Page18
- application period, anddataregarding thesteps theconsumer must takeupon theexpiry of
suchaperiod, andtheconsequences ofafailure totakesuchsteps iftheproduct inquestion
comes toposeadanger totheconsumer 'shealth, life,andproperty upon theexpiry ofthe
saidperiod orbecomes unfitforuseasdesignated.
Labels must beintheRussian language.
Question 34
Itisunderstood thatthere arethree governmental agencies handling matters related tosanitary
andphytosanitary, i.e.theState Committee onSanitary Epidemiological Surveillance, theDated
Committee forStandardization, Metrology andCertification, andtheVeterinary Department,
Ministry ofAgriculture. How arethese agencies related andisthere anyplantocentralize for
simplicity? Ifsowhat istheplan?
Answer
Inadditiontothelistedagencies,theRussianFederationhasaStatePlantQuarantineInspectorate
(Rosgoskarantin) oftheMinistry ofAgriculture andFood.
Theactivity ofthesaidagencies involved intheinspection (control) ofthefoodstuffs imported
from abroad iscarried outonthebasis ofthelawsoftheRussian Federation (including: No.4979
Onveterinaryof14May1993;No.5151-1Onthecertificationofproductsandservicesof10June1993;
No.2-FZ Onprotection oftherights ofconsumers of9January 1996, aswellasproceeding from
theProvisions onthesaidagencies andservices approved bythedecisions oftheGovernment ofthe
Russian Federation).
Anagreement among thelisted agencies stipulates that:
- TheState Committee onSanitary andEpidemiological Supervision (Goskomsanepidnadzor)
establishes sanitary norms andrules forfoodstuffs andfoodrawmaterials;
- theVeterinary Department oftheMinistry ofAgriculture andFood establishes veterinary and
sanitary requirements forlivestock products;
- Rosgoskarantin establishes alistofquarantine weeds anddiseases; and
- Gosstandard analyses alldocuments required toprepare auniform standard setting forthsafety
andquality requirements forfoodstuffs andfoodrawmaterials.
Question 35
Presently, theSanitary andPhytosanitary certifications aretobecompleted inRussian byforeign
exporters. Isthere anyintention bytheRussian Government tostandardize theforms and
incorporate English aspartofthelanguage inthese forms?
Answer
Atthepresent time, theexporters offoodstuffs mustobtain thecertificate ofhygiene inthe
established formatthestageofsigning thecontract documents related tothedelivery ofproducts from
abroad. Thesaiddocument must befiledintheRussian language.WT/ACC/RUS/13
Page19
Question 36
Re.Question 6(WT/ACC/RUS/4):
(a) Russia hasindicated that“onthewhole ”thepricing ofelectricity forthealuminum
industry isdetermined asdescribed intheresponse. What percentage oftheelectricity
consumed bytheRussian aluminum industry ispriced inanother manner? What
procedures, other thantheoneoutlined intheresponse, areusedtoestablish theprice
ofelectricity forthealuminum industry?
(b) Russia hasindicated initsresponse thatelectricity prices aresetsoastoallow for“...
aprofit forindustrial andsocial development ofpower plants andsystems andpaya
definite dividend onshares ofstock. ”Could Russia please indicate more precisely what
levelofprofit isnormally provided andwhat a“definite dividend ”is?Inaddition, what
ismeant bythe“social development ”ofpower plants?
(c) Whatpercentageofthestockofregionalpower-generatingjointstockcompaniesisprivately
held?
(d) Dotheregionalpower-generatingcompaniesnegotiatetheirelectricitypriceswithaluminum
producers?
(e) Russia hasstated thataluminum plants fallinthecategory ofindustrial consumers with
connected capacity above 750KVA. What aretheother classifications ofindustrial
consumers? How dotheir rates compare withthose foraluminum producers?
(f) How arethemembers oftheRegional Energy Commissions selected?
Answer
According totheFederal LawoftheRussian Federation OnState regulation ofprices for
electrical andthermal energy intheRussian Federation regional energy commissions aresubject to
terms ofreference thatseteconomically justified prices forelectrical andthermal energy provided by
localpower generating organizations, withtheexception ofconsumers thathaveaccess tothefederal
(all-Russia) wholesale market forelectrical energy (power).
Theregulation ofprices forelectrical andthermal energy isdoneafterreview ofpresentations
bytheenergy suppliers ofenergy andpower intheJointEnergy System (JES), ofthelevelofprices
forfuel,andother material resources, andequipment, etc.
Theregulation bytheState ofprices forelectrical andthermal energy isbased onmarket
conditions inorder todevelop asingle approach tothecalculation ofthelevelofprices ontheterritory
oftheRussian Federation. Stateregulation isaimed atpromoting thefunctioning andthedevelopment
oftheenergy supplying organizations. Itarises from theneedforelectrical energy, forreserves of
generating capacities sufficient forsustainable supply ofenergy tothenational economy andthedomestic
population,andtoprovidetoenergysupplyingorganizationsprofitssufficienttoattractcapitalinvestment
totheenergy sector.
Representatives oflocalauthorities, energy supplying organizations andofelectrical andthermal
energy consumers canbecome members ofregional energy commissions.
Regional energy commissions approve prices forelectrical andthermal energy supplied:WT/ACC/RUS/13
Page20
- fromthenetworks ofterritorial jointstock companies ofenergy andelectrification toconsumers
andre-sellers ofthecorresponding region;
- from thenetworks ofre-sellers toconsumers; and
- frombloc-stations tothenetwork oftheregional jointstock company andtooutside consumers.
Atpresent, theFederal Energy Commission oftheRussian Federation, theMinistry ofFuel
andEnergy ofRussia, andtheregional jointstock company "JES ofRussia" areworking onthe
improvement ofthetariffstructure forelectrical energy supplied tothealuminum industry withaview
toestablishing forthealuminum enterprises andother industries botheconomically justified prices
forelectrical energy, andthecreation forthemofanall-Russia wholesale market ofelectrical energy.
Question 37
Re.Question 43(WT/ACC/RUS/4):
(a) How istheforest resource quota setforState-owned forest products industries?
(b) Hasatime-frame beensetforprivatizing theforest products industry? Ifso,please provide
details.
(c) Isthecompensation paidbyprivate companies different from thatpaidbyState-owned
companies? Ifso,please provide details.
(d) What percentage oftheState-owned forest products industry is,byoutput, accounted
forbyRoslesprom?
Answer
Pending
Question 38
Re.Question 179(WT/ACC/RUS/4):
(a) Which sectors ofthemetallurgical industry, byendproduct, wereorarethebeneficiaries
oftheprivileged credits?
(b) Isthere arepayment schedule forthecredits? Willtherecipients becharged interest on
thedeferred payments?
(c) Areanysimilar deferred payments, orother subsidies, being provided tothemetallurgical
industry in1996?
Answer
PreferentialcreditswerenotgrantedthroughtheMinistryofFinancetometallurgicalenterprises.
Inresponses toquestions submitted bytheWorking Party, Russia hasstated thatitdoesnot
apply anyinvestment measures inconsistent withtheWTO Agreement onTrade-Related InvestmentWT/ACC/RUS/13
Page21
Measures (TRIMs) andhasnotoffered anydocumentation thatsuggests thepresence ofTRIMs in
Russia 'scurrent investment regime.
Question 39
Wewould appreciate additional information inthefollowing areas:
(a) HasRussia submitted acopy ofitsFederal Law onProduction Sharing Agreements
(No.225-FZ) intranslation totheWTO Secretariat?
(b) Could youplease clarify theprovisions oftheLawonProduction Sharing Agreements
regarding theuseofRussian-manufactured equipment andtheconditions forexemptions
from VAT, excise tax,andcustoms duties forequipment andservices imported byPSA
operating companies?
(c) Does thislawcontain anymeasures thatwould beconsidered aTRIM according tothe
WTO Agreement onTRIMs, inparticular anyrequirement ofdomestic content ordomestic
content linked toother advantages?
Answer
(a)(c) The text ofFederal Law No.225-FZ OnProduction-sharing Agreements, dated
30December 1995, hasbeensubmitted totheWTO Secretariat.
(b) ThisLawdoesnotcontain anyprovisions making theconclusion ofaproduction-sharing
agreement (PSA) andthegranting ofrelated taxbenefits directly conditional ontheconcessionaire 's
useofanyproportion ofRussian equipment, rawandother materials, andlabour (local content).
Question 40
Russia hasstated thatitwillsubmit acopyofthe"Russian Federation Industrial Policy Guidance
for1995-1997". Inaddition, on22March 1996, theRussian Government hasissued Resolution
No.324,approving aComprehensive PlanofAction thatwillimplement thePresidential Address
tothefederal Assembly andalsotheRussian Government Programme for"Russian Economic
Reform andDevelopment in1995-97.
(a) Isthere anything ineither ofthese documents, i.e.,the"Industrial Policy Guidance" or
inResolution No.324,thataddresses investment incentives, especially those forforeign
investment?
(b) Doprovisions ineither document callfororforesee measures thatrequire domestic content
orexport performance ininvestment, oroffer benefits inexchange forinvestment?
Answer
(a) Inorder toupdate legislation oninvestment policy andeconomic restructuring, theRussian
Government plans tosubmit totheState Duma thefederal draftlawOntheLicensing ofIndividual
Activities andOntheOrganization ofTenders forthePurchase ofGoods, Construction Works, and
Services toMeetStateNeeds. Ashasalready beennoted indocuments earlier provided, Russia applies,
withdueregard foritsnational security interests, theprinciple ofnon-discrimination towards foreign
investors andentrepreneurs, which willcontinue tobeobserved alsoduring theimplementation of
theComprehensive PlanofAction.WT/ACC/RUS/13
Page22
(b) Inprinciple, theGovernment oftheRussian Federation doesnotplantoadopt measures which
would contravene theprovisions oftheTRIMs Agreement.
TheWTO Secretariat willbeprovided withtheabove mentioned documents induecourse.
Question 41
TheWTO TRIMs Agreement prohibits theuseofinvestment measures inconsistent withArticles
IIIandXIoftheGATT of1994.
(a) Arethere anymeasures inplace atthistime, provided foreither infederal orsubfederal
legislation, thatwould engage these provisions oftheTRIMs Agreement?
(b) What istheroleofsubfederal authorities, e.g.,intheautonomous republics andoblasts,
inestablishing TRIMs forinvestment intheir areas?
(c) Ifso,Russia should provide theWorking Party withalistofsuchsubfederal measures,
ofgeneral orspecific application, indicating eachinstance where suchmeasures areapplied,
along withtheir principle features.
(d) Ifsuchmeasures areprovided orandadministered under lawbysubfederal authorities,
willRussia eliminate them soastoconform withtheprovisions oftheTRIMs agreement?
Answer
(a) TheRussian delegation hasalready supplied thefederal legislation andhasexpressed theview
that,initsopinion, itsregime isnotinconsistent withtheTRIMs Agreement. SeealsoAnswers to
questions 74,75,and81ofWT/ACC/RUS/9.
(b) Under theConstitution oftheRussian Federation, federal authorities establish general norms
fortheconduct andregulation ofentrepreneurial activities throughout Russia. Aterritorial subject of
theRussian Federation may, within thelimits ofitsauthority, regulate entrepreneurial activities. For
instance, itmayvarytheratesoflocaltaxesandcharges within itsownshare oftaxreceipts andwithout
anydiscrimination against entrepreneurs from other regions andagainst foreign investors compared
withlocalproducers.
(c) TheRussian Government doesnotcollect dataonsubfederal measures intheareaofTRIMs.
(d) TheRussian Federation willmeet itsWTO obligations under itsProtocol ofAccession in
accordance withArticle XXIV (12)oftheGATT 1994.
Question 42
IfRussia doesnotapply anymeasures notinconformity withtheTRIMs Agreement, wewould
appreciate confirmation ofthatfrom theRussian delegation, andacommitment thatRussia will
notintroduce anysuchmeasures during thenegotiation.
(a) Weseekacommitment from Russia thatitwillnotseekanytransitional arrangements
fortheelimination ofsuchmeasures overaperiod oftimeafter accession totheWTO.
(b) TheUSandRussia haveconcluded aBilateral Investment Treaty. Theprovisions ofthis
agreement include WTO TRIMs obligations regarding localcontent andtrade-balancingWT/ACC/RUS/13
Page23
measures andgobeyond theWTO TRIMs Agreement inprohibiting theuseofexport
performance requirements investment regulations. Wewould expect thatRussia would
notdepart from thisagreement informulating itsinvestment rules.
Answer
Theconditions fortheRussian Federation 'saccession totheWTO andtheduration ofany
transitional period willbethesubject matter ofnegotiations. Therefore, theRussian delegation cannot,
atthisstage, make specific commitments beyond ageneral declaration ofintent toobserve theTRIMs
provisions, aswellasitsinternational obligations under bilateral agreements ontheprotection and
promotion ofcapital investment which haveentered intoforce afterratification bytheStateDuma of
theRussian Federation.
Question 43
Theresponse toquestion 71(WT/ACC/RUS/9) states thatRussia retains theright toapply certain
exemptions tonational treatment “atthestage ofgranting access (entry) toforeign investors ”
toensure national defence, State security, protection ofpublic order, protection oftheinternal
market, andfulfilment ofinternational obligations oftheRussian Federation. With reference
to"protection oftheinternal market andfulfilment ofinternational obligations oftheRussian
Federation", what exemptions tonational treatment areforeseen? With respect tothe"internal
market", what sectors would beaffected? With reference toRussia 's"international obligations",
what legal provisions would berelated totheexceptions which would beneeded?
Answer
Explanations regarding theinterpretation oftheRussian Federation 'sapplication oftheprinciple
ofgranting toforeign investors national treatment withsome exemptions wereprovided intheAnswers
toquestions 67,71,72,and75inWT/ACC/RUS/9. Thepractical experience ofenforcement inthis
connection oftheRSFSR LawOnForeign Investment intheRSFSR, dated 4July1991, aswellas
ofintergovernmental agreements ontheencouragement andmutual protection ofcapital investment,
hasdemonstrated thatitisnecessary toregulate thesubstance andforms ofsuchexemptions, particularly
prohibitions andrestrictions, andtoclarify thescope oftheirapplication.
Theanswers provided earlier (inparticular, theAnswer toquestion 67inWT/ACC/RUS/9)
pointed outthatitisverydifficult atpresent tocompile anexhaustive listofexemptions fromnational
treatment. ThisiswhytheGovernment oftheRussian Federation hasdrafted theFederal LawOna
ListofEconomic Sectors, Production Operations, Activities, andTerritories Where theActivities of
Foreign Investors AreProhibited orLimited.
Prohibitions andrestrictions areexpected tobeimposed onlybyfederal lawsandapplied only
tonewinvestment.Theserestrictionsmaybeoftwotypes,namely:alicencetomakeforeigninvestment,
andtheestablishment ofalimitonforeign equity participation (byoneorseveral foreign investors)
inthecharter capital ofacommercial organization, orontotalforeign equity participation inthe
combined capital ofallRussian economic agents engaging inaspecific activity. Until theadoption
ofthislawbytheState Duma oftheRussian Federation, itisnotpossible toprovide adetailed list
ofthose areas ofinvestment towhich itwillapply.
Question 44
Could Russia please expand ontheso-called “post-investment stage”exceptions forlegalregulation
offoreign investors orenterprises withforeign investment?WT/ACC/RUS/13
Page24
Answer
TheRussian Federation doesnotinprinciple intend tomake anyexceptions from national
treatmentatthepost-investmentstageafterinvestmenthasalreadybeenmadeandcompanieswithforeign
equity participation arealready inoperation, sincethiswould violate therights andinterests offoreign
investors. Todatetheimposition in1993ofa12percentlimitonforeign capital participation inbanking
business hasnotaffected those Russian banks withforeign equity participation andbranches offoreign
banks which werealready inbusiness ontheRussian market, because theirtotalshare didnotexceed
theestablished limit.
Question 44A
Does Russia maintain themeasures described intheillustrative listattached totheTRIMs
Agreement?
Ifso,wewould liketoreceive acomprehensive listofsuch measures. Does Russia have any
intention toabolish suchmeasures? Ifso,when willRussia abolish them completely? Ifnot,
canRussia commit itself nottointroduce themeasures listed intheillustrative listattached to
theTRIMs Agreement?
Answer
SeetheAnswer toquestion 41(a)herein andtheAnswer toquestion 75inWT/ACC/RUS/9.
Question 44B
Weareinterested inwhat types ofconditions foreign anddomestic investors maybeasked to
accept inexchange forbeing allowed toinvest ortocarry ontheir investment activities. For
example:
(a) During thediscussions ornegotiations ofpre-orpost-establishment investment projects,
doRussian authorities require anenterprise, whether partly- orwholly-owned byaforeign
investor orforeign investors, toagree tospecific conditions orconduct, forexample, to
buyacertain amount ofdomestic factors ofproduction ortoattain certain levels ofexports?
Aresuchconditions everapplied todomestic investment projects?
(b) Doforeign investors have tocomply withsuchconditions tobeabletoreceive benefits
inreturn, such astoobtain grants, subsidies, taxreductions, licences, access to
infrastructure facilities ortoother regulatory benefits? Aresuchconditions everapplied
todomestic investors?
(c) Ifsuch conditions apply (toeither foreign ordomestic investors), arethere differences
intheir application withregard to:
- specific sectors;
- sub-federal governments; or,
- preferential trade agreements (eg:withCISStates)?
Answer
(a)(b) Nopermission fromStateagencies isrequired tomake investments. Theinvestor maydecide
toinvest athisownriskandathisowndiscretion without theparticipation oftheState.WT/ACC/RUS/13
Page25
ThesystemofgovernmentalinvolvementininvestmentinRussiaincludestheState'sinvolvement
inthefinancing ofprivate capital investment, provided thattheinvestor fulfils established requirements
(regarding recoupment periods andscope ofinvestment).
TheGovernment oftheRussian Federation hasestablished aprocedure forthedistribution
ofitsbudgetary resources tofinance private investment onRussian territory pursuant toRussian
PresidentialDecreeNo.1928OnPrivateInvestmentintheRussianFederation,dated17September1994,
andRussian Government Resolutions No.744OntheProcedure fortheDistribution ofCentralized
InvestmentResourcesontheBasisofTenders,dated22June1994,andNo.534OnAdditionalIncentives
forPrivate Investment intheRussian Federation, dated 1May1996. Thisprocedure stipulates, in
particular, thatgovernment guarantees maybegiven forprojects when theshare ofexported products
exceeds established criteria.
ForeigninvestorsoperatinginRussiaenjoyequalrightswithRussianinvestorstoreceivebenefits
andincentives provided forintheabove mentioned legislation.
(c) TheRussian system ofincentives andbenefits forinvestors andentrepreneurs isdifferentiated
depending ontheeconomic sector andrecipient. Itshould benoted thatafulldescription ofarrangements
fortheregulation, support, andencouragement ofentrepreneurs andinvestors isnotpossible inasingle
answer. Details ofsucharrangements andtheirassessment withrespect toGATT andTRIMs provisions
wereprovided inanswers (WT/ACC/RUS/4, WT/ACC/RUS/5, WT/ACC/RUS/9), Laws andTreaties
earlier submitted bytheRussian Federation.
Question 45
Re.Question 139(WT/ACC/RUS/9) Does theanswer inparagraphs 2and3mean thatRussia
grants toindividuals andlegal entities ofthecountries which areparties totheinternational
agreements (Paris Convention, Berne Convention) thesame rights asitdoestotheRussian right
holder andtherightholders fromcountries withwhich bilateral agreements onintellectual property
protection have been concluded?
Answer
TheRussian Federation hasobligations, under bilateral agreements, togrant some privileges
(inparticular, retroactive protection forworks which arecovered bycopyright andrelated rights) to
Nationals ofcountries which areparties tothese agreements. Substantially thesame privileges will
beaccordedinRussianlegislationtoallWTOmembercountriesaftertheRussianFederationhasacceded
totheWTO. Inparticular, negotiations ontheterms ofsuchaccession should decide theissue ofthe
datefromwhich thereservation made during Russia 'saccession totheBerne Convention willnotapply
totheWTO member countries.
Ontheother hand, bilateral intergovernmental agreements onIPRprotection havebeensigned
andarebeing fulfilled withanumber ofCIScountries. Such agreements, forinstance, havebeen
concluded between theRussian Federation andtheRepublic ofAzerbaijan, theRepublic ofArmenia,
theRepublic ofBelarus, theRepublic ofKazakhstan, theRepublic ofKyrghyzia, theRepublic of
Moldova, theRepublic ofTadzhikistan, theRepublic ofTurkmenistan, theRepublic ofUzbekistan,
andUkraine. Under these agreements, which entered intoforce before 1January 1995, nationals and
legalentities ofthesignatory countries arepermitted, onthebasisofreciprocity, toobtain andmaintain
patents without theuseofpatent agents asintermediaries. Applicants fromthose countries which have
concluded international agreements withtheRussian Federation onmutual settlements inRussian rubles
paypatent feesinRussian rubles. After theaccession oftheRussian Federation totheWTO, theaboveWT/ACC/RUS/13
Page26
agreements willbenotified totheCouncil forTRIPS inaccordance withparagraph (d)ofArticle 4
oftheTRIPS Agreement.
Question 45B
Itappears from Russia ’sresponse toquestion 139thattheextension ofprotection forpre-1973
workstoright-holdersfromcertaincountries,butnotothers,isinconsistentwithnon-discriminatory
treatment.
What legislative changes arebeing contemplated toaddress thisconcern?
Answer
Seeanswer 45herein.
Question 46
Re.Question 143(WT/ACC/RUS/9) Please provide more detailed information onhowRussia
plans tomake provisional administrative border measures more effective.
With regard toborder measures, howisRussia implementing Articles 51to60oftheTRIPS
Agreement?
Answer
Theonlylegalmeans ofenforcing border measures against counterfeit goods atpresent isthe
adoption ofprovisional measures onthebasis ofarightholder 'slawsuit filedtogether withapetition
forremedies suchas,forinstance, theimpounding ofproperty under customs control.
Such petitions areconsidered bycourts without theservice ofprior notice orsummons to
defendants.
ThismakesRussianlegislationconsistent,inparticular,withArticle51oftheTRIPSAgreement.
Theestablishment ofanadministrative procedure forthispurpose iscurrently being considered inorder
tomake these arrangements more effective.
Question 46A
Theresponse toquestion 140(WT/ACC/RUS/9) addresses thedegree ofprotection ofdataon
pharmaceutical orchemical products against unfair commercial use.
DotheMinistry ofHealth andMedical Industry, Rospatent, theMinistry ofJustice orother State
organizations, either independently orincooperation withoneanother, takemeasures todeny
(orrevoke) registration ofpharmaceutical preparations incases when theapplicant (orregistrant)
markets (orproposes tomarket) such preparations inviolation ofvalid Russian patent rights
already heldbyanother producer? Ifso,please describe these procedures.
Answer
Since theregistration ofpharmaceuticals inRussia requires onlytheirtesting foreffectiveness
andsafety, there isnolegal connection between suchregistration andtheentirely separate analysis
ofprotection from infringement ofpatent rights.WT/ACC/RUS/13
Page27
Question 47
Re.Question 144(WT/ACC/RUS/9). When willtheCriminal Code oftheRussian Federation
become effective?
Upuntil theadoption andimplementation ofthenewCriminal Code, howwillRussia fillthe
gapbetween current criminal procedures andthenewprocedures?
Answer
TheCriminal Code oftheRussian Federation, which wasadopted bytheState Duma in
17June1996, will,inaccordance withtheestablished procedure, enterintoforceasof1January 1997.
TheprovisionsofthenewCriminalCodewhichstipulatecriminalliabilityforinfringementsofcopyright
andrelatedrights,patentrights,andtrademarkrightsprovideformuchstifferpenaltiesforsuchoffenses,
including substantial fines, corrective labour forupfortwoyears, andimprisonment forupto5years.
Question 48
Re.Question 145(WT/ACC/RUS/9) Could Russia clarify itsresponse toQ145 (page 63)inlight
ofitsstated intention tojointheWTO asadeveloped country? Inparticular, could Russia confirm
thatitdoesnotintend tomake useofanytransitional period forimplementation ofTRIPS?
What kindoftechnical cooperation doesRussia need toimplement theTRIPS Agreement?
Answer
Atpresent, weproceed fromtheassumption thatRussia willneedatransitional period inorder
tofulfil certain obligations stipulated intheTRIPS Agreement.
Inouropinion, thisissueshould bediscussed ingreater detail during negotiations ontheterms
ofRussia 'saccession totheWTO.
Thetechnical cooperation needed toimplement theTRIPS Agreement iscurrently under
discussion withWTO Members.
Question 49
Re.Question 147(WT/ACC/RUS/9) Since theRussian Federation realizes thatthereservation
cannot beapplicable toWTO Member countries, doesitintend towithdraw thereservation?
Answer
SeeAnswer 45herein.
Question 50
Re.Question 149,189and190(WT/ACC/RUS/9) Canweunderstand thatRussia wishes toaccede
totheWTO asnation intheprocess oftransition from acentrally planned economy intoa
market-free-enterprise economy?WT/ACC/RUS/13
Page28
Answer
SeeAnswer 48herein.
Question 51
Re.Question 151(WT/ACC/RUS/9) Have anyspecific problems occurred regarding CIScountries
intrying toprotect IPR?
Answer
SeeAnswer 45herein.
Question 52
Re.Question 152(WT/ACC/RUS/9) Does theRussian Federation intend toavail itself
ofArticle 6oftheBerne Convention?
Answer
Russia currently hasnospecific plans toexercise ofrights granted byArticle 6oftheBerne
Convention.
Question 52A
Arethefeesmentioned intheresponse toquestion 155thesame forforeign anddomestic
applicants?
Answer
Since foreign applicants (except those from countries withwhich settlements arepossible in
rubles) andRussian applicants payduties indifferent currencies, dutyratesforforeign applicants are
established separately.
Question 53
Re.Question 157(WT/ACC/RUS/9) With regard totheprotection oftrademarks, ifaconsumer
complains about adecision bytheRussian authorities which approved atrademark, willthe
authorities reconsider thedecision? What aretheprocedures forsuchreconsideration?
IntheArticle 11oftheRussian Patent Lawof1992, there isaprovision thatisnotconsidered
tobeaninfringement ofexclusive rights ofpatent holders. Hasthisprovision been amended?
Ifnot,isthisprovision within thescope ofdiscretion provided forinArticle 30oftheTRIPS
Agreement?
Answer
InaccordancewiththeRussianFederationLawOnTrademarks,ServiceMarks,andAppellations
ofOrigin (Articles 28and29),theregistration ofatrademark maybecontested andinvalidated on
thebasis ofanapplication from anyparty, including aconsumer, provided thatlegalgrounds arein
evidence fortaking suchadecision.WT/ACC/RUS/13
Page29
Theprovisions ofArticle 11oftheRussian Federation Patent Law, providing forexceptions
fromthelistofactions which aredeemed tobeinfringements ofpatentees 'exclusive rights inaccordance
withthisLaw, havenotbeenamended since 1992. Inouropinion, theyarefully consistent with
Article 30oftheTRIPS Agreement, since none ofthem unreasonably conflicts withthenormal
exploitation ofthepatent orunreasonably prejudices thelegitimate interests ofpatent owners.
Question 54
Re.Question 162(WT/ACC/RUS/9) Inrelation toQ162 (page 67),howwilltheprovisions
oftheTRIPS Agreement relating totheprotection ofwell-known trademarks beapplied inRussia?
Does Russia intend toenact legislation relating toanddefining well-known trademarks? Ifso,
when willthatlegislation beenacted?
Answer
Upon theRussian Federation 'saccession totheWTO, theTRIPS Agreement will,inaccordance
withRussian legislation, become partoftheRussian legalsystem, which willmake itpossible toprovide
broader protection forwell-known trademarks.
Russia currently doesnothaveanyspecific plans toadopt special legislation ontheprotection
ofwell-known marks.
Question 55
Re.Question 164(WT/ACC/RUS/9) Does theanswer toQuestion 164mean thattheRussian Law
No.3520-1 fulfils allrequirements ofArticle 23TRIPS?
Answer
Itistheview oftheRussian delegation thatRussian legislation (including theLaws On
Trademarks, Service Marks, andAppellations ofOrigin, OntheProtection ofConsumers 'Rights,
andOnCompetition andtheLimitation ofMonopolistic Activities onCommodity Markets) isconsistent
withtherequirements setforthinTRIPS Article 23withdueregard forexceptions stipulated inTRIPS
Article 24.
Question 56
Re.Question 167(WT/ACC/RUS/9) Willtheapplication forapatent notbeaccepted before the
translations ofthedocuments aresubmitted? Orwillagiven acceptance berevoked iftherequired
translations arenotsubmitted within the30-day period?
Answer
Inaccordance withtheestablished procedure, forthematerials ofanapplication submitted
tothePatent Office toberegistered, theymustinclude apetition foraRussian Federation patent in
theRussian language. Ifsuchmaterials donotinclude translations ofother documents intotheRussian
language, theapplicant isnotified oftheneedtoprovide suchtranslations within twomonths after
thematerials 'submission. Unless suchtranslations areprovided bytheabove deadline, thematerials
oftheapplication aredeemed nottohavebeenfiledandarereturned totheapplicant.WT/ACC/RUS/13
Page30
Question 57
Re.Question170(WT/ACC/RUS/9)IftheprovisionsoftheRussianLawNo.3517-1oncompulsory
licensing are"generally" consistent withArticle 31TRIPS, doesthisinclude therequirement that
theproposed userofapatent hasmade efforts toobtain authorization from theright holder on
reasonable commercial terms andconditions andthatsuchefforts havenotbeensuccessful within
areasonable period oftime. (Article 31(b) TRIPS)?
Answer
ThePatent LawoftheRussian Federation provides forsuchprocedure andconditions asdo
not,onthewhole, contradict therequirements ofTRIPS Article 31forthegranting ofacompulsory
non-exclusive licence toanyperson whoisready andwilling touseapatented invention, whose offer
toconclude alicensing agreement hasbeenrejected bythepatent owner andwhohasapplied forsuch
licence totheHigher Patent Chamber ifitisproved thattherespective patented invention hasnotbeen
usedforfouryears aftergranting apatent. Acompulsory non-exclusive licence mustbegranted by
theHigher Patent Chamber (which hasstilltobeestablished) intheevent ofnon-use orinsufficient
useofapatented assetandmust define thelimits ofuse,theamount oflicence feeswhich maynot
belessthanthemarket price ofthelicence, andtheprocedure andtimeframe foreffecting such
payments. Acompulsory non-exclusive licence willbedenied ifthepatent owner proves thathisnon-use
hasbeenduetovalid reasons. Inorder todoaway withtheambiguity ofthese provisions andmake
them more clearly consistent withtheTRIPS Agreement, itisplanned tomake amendments tothe
existing Patent Law, inparticular, toitsclauses oncompulsory licensing.
Question 58
Re.Question 171(WT/ACC/RUS/9) When isthefederal billontrade secrecy expected toenter
intoforce?
Answer
Itisnotpossible topredict thedateonwhich thisdraftlawwillbeenacted bytheRussian
Parliament northedateonwhich itwillenter intoforce.
Question 59
Re.Question 180(WT/ACC/RUS/9) Could Russia explain about thefollowing:
(a) Towhat degree isRussia examining theprocedures forsuspending therelease ofthose
goods whose importation willinfringe IPR?
(b) What aretheprocedures tosuspend theimportation orexportation ofgoods which will
infringe IPR?
(c) What aretheprocedures tofileacomplaint against action bycustoms officers?
(d) How dotheRussian departments oragencies concerned cooperate witheach other to
suspend therelease?
Answer
(a)(b) SeeAnswer 46.WT/ACC/RUS/13
Page31
(c) Importers maychallenge actions bycustoms officers either withhigher customs agencies or
incourt byfiling aclaim.
(d) Forthepurposes ofsuspending theissuance ofgoods forfreecirculation, theRussian State
CustomsCommitteecloselycooperates,inaccordancewithinterdepartmentaldocuments,withtheInterior
Ministry oftheRussian Federation, theStateTaxService oftheRussian Federation, andtheRussian
Federation State Committee onAntimonopoly Policy andSupport forNew Economic Entities by
conducting jointoperations andexchanging information.
Question 60
Re.Question 181(WT/ACC/RUS/9) Incriminal procedures areremedies available thatinclude
seizure, forfeiture andthedestruction oftheinfringing goods andofanymaterials andimplements
thepredominant useofwhich hasbeen inthecommission oftheoffence (Article 61TRIPS)?
Answer
Article175oftheCodeofCriminalProcedureoftheRussianFederationprovidesfortheseizure
ofproperty aswellasforthedestruction ofproperty usedinthecommission ofacrime oritems
prohibited forcirculation, oralternatively fortheirtransfer toappropriate institutions.
Question 61
Re.Question 392(WT/ACC/RUS/7) Inreply tothisquestion, given alsoaddressed inquestions
145and60,Russia informed that“suchamendments could beadopted upon theentry intoforce
oftheRussian Protocol ofAccession totheWTO ”.However, wefeelthatatleastsome provisions
oftheTRIPS Agreement have tobeenforced atthemoment oftheaccession atthelatest. We
askfurther clarifications whether theRussian authorities willseektoinvoke special provision
ofArticle 65:3oftheTRIPS Agreement providing forthecountry intheprocess oftransformation
thepossibility todelay application oftheprovisions ofthisAgreement other thanArticles 3-5.
Answer
SeeAnswer 48.
Question 62
What kindofsystem, national orinternational, oftheexhaustion ofintellectual property rights
istheRussian Federation using, especially interms ofpatents andtrademarks?
Answer
While Russian legislation doesnotgiveadirect answer tothisquestion, itdoesprovide for
theright toimport goods aspartofanexclusive right, ittherefore appears tobeanational system
ofexhaustion.
Question 63
AlthoughsucharequirementisnotstipulatedintheTRIPSAgreement,doestheRussianFederation
intend tointroduce theinstitution ofsupplementary protection certificate forpharmaceutical
products andagricultural chemical products which isbecoming acommon practice inWestern
Europe?WT/ACC/RUS/13
Page32
Answer
There arenoplans currently inRussia tointroduce supplementary protection certificates for
pharmaceutical andagricultural chemical products.
Question 64
Please inform whether Russia anticipates toaccede tothose international conventions onintellectual
property rights towhich itisnotaparty yet. Ifso,towhich ones? Particularly, doesRussia
intend tobecome aparty totheProtocol totheMadrid Agreement onInternational Registration
ofMarks, Madrid 1989 andtheInternational Convention onProtection ofArtists, Performers,
Producers ofPhonograms andRadio andTVBroadcasters of26October 1961 (socalled Rome
Convention).
Answer
WhilethenecessarydocumentationforRussiaaccessiontotheProtocoltotheMadridAgreement
arecurrently being prepared, afinaldecision onthismatter hasyettobetaken.
Theissue ofRussia 'saccession totheRome Convention isunder active discussion.
Question 65
Werequire clarification inrelation toSection 35inChapter VIIIofthePatent Law, 1992. Does
thissection mean thataperson cannot fileforapatent, forexample, under thePatent Cooperation
Treaty, until three months after apatent application hasbeen filedinRussia?
Answer
Inaccordance withArticle 35ofthePatent Law, thepatenting abroad ofinventions, utility
models, andindustrial designs created intheRussian Federation maynotbecarried outearlier than
three months afterthefiling oftherespective application withtheRussian Patent Office (Rospatent).
Where necessary, forinstance, inorder toobtain apatent foranassetwhich isnotpatentable under
Russian legislation, thePatent Office mayauthorize thepatenting ofsuchasset abroad earlier than
stipulated bythePatent Law.
Asfarasapplications according totheprocedure stipulated bytheAgreement onPatent
Cooperation areconcerned, theymaybefiledwithRospatent. Ifanapplication names Russia asone
ofthepatenting countries, theprior filing ofanational application isnotrequired.
Question 66
DoestheRussian Government intend tomeettheenforcement provisions oftheTRIPS Agreement?
Does theGovernment haveanyplans forpublic education about themeaning andvalue ofIPRS?
Areadditional resources tobeallocated totherelevant agencies which areresponsible forthe
enforcement ofIPRS?
Answer
SeeAnswer 47herein.WT/ACC/RUS/13
Page33
Question 67
Weunderstand thattheDepartment forProtection Against Unfair Competition intheRussian
Anti-Monopoly Committee isresponsible fortheinvestigation andprosecution ofIPRbreaches
throughout Russia. Please explain thestructure andmandate ofthisdepartment. What other
government bodies areresponsible fortheenforcement ofIPRS inRussia?
Answer
Inaccordance withArticle 10oftheLawoftheRSFSR Oncompetition andRestriction of
Monopoly Activity oncommodity Markets dated 22March 1991, unfair competition isnotpermitted,
including thesaleofgoods withtheillegal useoftheresults ofintellectual property assets, aswell
astheobtaining, use,ordisclosure ofscientific, technological, production andcommercial information,
including commercial secrets, without theconsent oftheirowners.
According toArticle 12oftheLawoftheRSFSR Oncompetition andRestriction ofMonopoly
Activity oncommodity Markets dated 22March 1991 thefederal anti-monopoly authority isentitled
todirect persons engaged ineconomic activity tocease violations oftheanti-monopoly legislation and/or
toeliminate theconsequences ofsuchviolations, torestore affected persons totheiroriginal position,
tovoidormodify agreements which conflict withtheanti-monopoly legislation, totransfer tothefederal
treasury revenues received asaresult oftheviolation oftheanti-monopoly legislation, aswellasto
imposepenaltiesoncommercialandnon-commercialorganizationsandtoimposeadministrativesanctions
onpersons orentities which failtocomply withthedirectives oftheStateAnti-Monopoly Committee
ofRussia (SAMC).
ADirectorateforcontrolofunfaircompetitionwascreatedwithintheSAMCon1January1996.
TheDirectorate consists ofthefollowing sections:
- methodology;
- trade ingoods;
- trade inservices; and
- regulation ofadvertising practices.
Theprincipal tasks oftheDirectorate arethesuppression ofunfair competition pursuant to
Article 10ofLawoftheRSFSR Oncompetition andRestriction ofMonopoly Activity oncommodity
Markets dated 22March 1991, control oftheobservance ofthelegislation onadvertising, thedrafting
ofproposals aimed attheimprovement oftheanti-monopoly legislation onthesaidissues.
Inlinewiththeabove, theDirectorate carries outthefollowing functions:
- conducts investigations, institutes proceedings, participates inthehearing ofcases related to
unfair competition, including those dealing withviolations ofexclusive rights within theterms
ofreference oftheanti-monopoly authorities;
- drafts methodological materials related totheconsideration ofapplications withregard tounfair
competition,includingviolationsofrightsunderthejurisdictionoftheanti-monopolyauthorities;
- reviews andcomments onnormative actsofthefederal executive authorities, oftheexecutive
authorities oftheregional governments oftheRussian Federation andoflocalauthorities withWT/ACC/RUS/13
Page34
regard totheprevention, limitation andsuppression ofunfair competition andtheobservance
ofexclusive rights within thejurisdiction oftheanti-monopoly authorities; and
- ensures compliance ofadvertisements withrequirements ofthelegislation, participates inthe
investigation ofcases related toviolations ofthelegislation onadvertising.
Cases dealing withviolations oftheanti-monopoly legislation areinitiated onthebasis ofa
claim being filedwiththeCommittee orontheinitiative oftheSAMC ofRussia itself inaccordance
withtheOrder oftheChairman oftheSAMC No.53of12May1994. Incases ofaviolation, the
Chairman oftheCommittee mayestablish aCommission fortheconsideration ofthespecific case.
Having examined thecasebefore it,theCommission willtakeadecisions andissueaninstruction on
thematter.
TheSAMC, afederal executive body, considers casesrelated toviolations oftheanti-monopoly
legislation intheframework ofadministrative justice. Adecision oraninstruction oftheSAMC of
Russia canbeappealed incourt oracourt ofarbitration fullyorpartially.
Territorial directorates oftheSAMC ofRussia alsoinstitute proceedings related toalleged
violationsofArticle10(unfaircompetition)oftheLaw"Oncompetition..."withinthetermsofreference
granted tothembytheRegulations onterritorial directorates oftheSAMC ofRussia approved bythe
Order oftheChairman oftheSAMC ofRussia of13November 1995.
Rospatent, theMinistry ofJustice, TheStateCustoms Committee ofRussia, theMinistry of
Interiorandotherministriesandagenciesalsoprotectintellectualpropertyundertheirtermsofreference.
Question 68
Weunderstand thatimproved enforcement measures areproposed inrelation tofakeandimitation
products. Does Russia intend toextend these measures tocover trade marks?
Answer
Inaccordance withRussian Federation LawNo.Z20-1OnTrademarks, Service Marks, and
Appellations ofOrigin, dated 23September 1992, therighttointellectual property protection extends
totrademarks.
Question 69
Indocument WT/ACC/RUS/7, atthetopofpage27,itisstated inbrackets thatincourts ofgeneral
jurisdiction, theruleforrequests forprovisional measures tobetaken uponthedaywhen they
arereceived isoften broken because judges areeither absent ortoobusydealing withother cases.
Does thismean that, infact,inthese cases effective provisional measures donotexist?
Answer
Provisional measures exist(Article 133-140 oftheRSFSR Code ofCivil Procedure) andare
applied ifandwhen necessary.
Question 70
IstheGovernment taking steps toimprove thejudiciary ’scapacity todecide oncases involving
intellectual property rights?WT/ACC/RUS/13
Page35
Answer
Yes.Forexample, theGovernment posts educational seminars fortheRussian judiciary on
theenforcement ofintellectual property rights onaregular basis.
Based onRussia ’sgood existing legal framework fortheprotection ofintellectual property
rights, weexpect Russia tofullyimplement theTRIPS agreement upon accession.
Itwould beextremely difficult fortheUStoagree toatransition foranyTRIPS obligation
thatisalsocovered byourbilateral trade agreement. Given theextensive overlap ofcommitments
between ourtradeagreement andTRIPS wedonotbelieve thattherearemany areas where transitions
would befeasible.
Westrongly urgeRussia tousethetimeremaining intheaccession process tobring itsIPR
regime intofullconformity withtheTRIPS obligations.
Question 71
Isthere aparticular agency thatisresponsible forreviewing theTRIPS Agreement 'sobligations
toensure thatRussian lawconforms? Ifnot,howiscoordination ofthereview being handled?
Answer
Coordination iscarried outthrough theInterdepartmental Commission fortheEnforcement
ofIntellectual Property Rights.
Question 72
Although theBerne Conventions came intoforce fortheRussian Federation on13March 1995,
Russia hasnotyetrestored retroactive copyright protection, inaccordance withArticle 18ofthe
Berne Convention, forcopyrighted works thathavenotreceived afulltermofprotection inRussia
andarestillprotected intheir country oforigin.
Arethere plans tocorrect thisinconsistency and,ifso,please describe them.
Answer
SeeAnswer 45.
Question 73
Likewise, Russia hasnotprovided protection forsound recordings created prior tothedateon
which theGeneva Phonograms Convention came intoforce fortheRussian Federation, also
13March 1995. TheTRIPS Agreement applies theobligations under Article 18oftheBerne
Convention tosound recordings, requiring theRussian Federation toprotect allsound recordings
created after 1945 iftheyarestillprotected intheir country oforigin andhave nothadafull
term ofprotection intheRussian Federation.
(a) What steps isRussia taking toaddress thisaspect ofitsprospective TRIPS obligations?
(b) What plans arethere toimplement thisprovision?WT/ACC/RUS/13
Page36
Answer
Atpresent,existinglegislationintheRussianFederationdoesnotpreventthegrantofretroactive
protection foraudio recordings, provided thatthisisstipulated byaninternational agreement.
Retroactive protection foraudio recordings willbeprovided fromadatetobedetermined in
thecourse ofnegotiations onRussia 'saccession totheWTO.
Question 74
Theprotection forwell-known marks under Article 7(1)oftheRussian trademark lawprohibiting
registration ofsigns orindications thatareidentical orconfusingly similar totrademarks ofthird
parties doesnotprotect theowners ofcertain wellknown marks from registration byunauthorized
parties ofconfusingly similar marks and,insome instances, from having thewellknown mark
cancelled.
Webelieve thatthisisinconsistent withArticle 6bisoftheParis Convention fortheProtection
ofIndustrial Property which isincorporated byreference intotheTRIPS Agreement inArticle 2.1.
What plans doesRussia have tostrengthen theprotection forwellknown marks?
Answer
SeeAnswer 54herein.
Question 75
Onthepatent side,Russia 'spatent lawexpressly excludes protection forplant varieties. TheTRIPS
Agreement requires thatwhere suchanexclusion exists, thecountry must provide aneffective
suigeneris system forprotecting plant varieties
Wewould beinterested tolearn ifRussia intends tojointheConvention forProtection ofNew
Varieties ofPlants, andifnot,what form ofalternative protection Russia willprovide forplant
varieties offoreign nationals consistent withtheTRIPS Agreement.
Answer
Russian legislation onselection attainments provides fortheprotection ofplant varieties.
InRussia, patent protection forselection attainments areunderstood tomean newplantvarieties
andanimal breeds.
TheRussian Federation LawNo.5605-1 OnSelection Attainments dated 6August 1993(which
hasbeenmade submitted totheWTO Secretariat) provides forthefiling ofapplications forpatents
forselection attainments.
Apatent foraselection attainment gives itsholder theexclusive righttousetherespective
selection attainment ontheterritory oftheRussian Federation, aswellastheright ofprotection to
theintellectual property inquestion.WT/ACC/RUS/13
Page37
Ifabreeder hasobtained anewplant variety oranimal breed asaresult (inthecourse) ofhis
employment, theapplicant (patentee) istheemployer whoisliable topaycompensation totheauthor
ofsuchvariety orbreed throughout thevalidity period ofthelicence.
TheRussian Federation LawOnSelection Attainments isconsistent withtheprovisions ofthe
International Convention ontheProtection ofNewPlantVarieties andhasbeenexamined andapproved
byameeting oftheInternational Union fortheProtection ofNewPlant Varieties inGeneva.
RussiaiscurrentlyconsideringfilinganapplicationforaccessiontotheInternationalConvention
ontheProtection ofNewPlant Varieties.
Seealsoanswer 21inWT/ACC/RUS/9.
Question 76
Theprotection forundisclosed information under Article 139oftheCivil Code oftheRussian
Federation andunder Article 10ontheLawonCompetition andtheLimitation ofMonopolistic
Activity intheMarketing ofGoods doesnotappear toapply tothird parties whomight acquire
such information anduseitinsituations inwhich theyknew orshould have known thatthe
information wasobtained ordisclosed without theauthorization oftheowner oftheinformation.
(a) Arethere anyplans toenact legislation specifically toprotect undisclosed information
from suchacquisition andusebythird parties?
(b) HowdoesRussia intend tobring itslawsandpractice uptoTRIPS Agreement standards
inthisarea?
Answer
TheLawoftheRSFSRof22March1991OnCompetitionandontheLimitationofMonopolistic
Activities onCommodity Markets intheRSFSR alsocovers those cases where unfair competition
manifests itself inactions bythirdparties whoreceive anduseunpublished information
Question 77
Concerning enforcement ofcopyrights against piracy andtrademarks against counterfeiting, it
appears thatRussia isnotinconformity withTRIPS inseveral areas:
What plans arethere togiveCustoms officials authorization toacttostopimports orpiratical
copies ofcopyrighted works andPhonograms andtostopimports ofcounterfeit trademarked
goods?
Answer
SeeAnswer 46.
Question 78
Thefacttheintellectual property cases canbebrought inthegeneral civilcourts, ifindividuals
areinvolved, orthearbitrage courts, ifjuridical entities areinvolved could create aproblem of
interpretation ofintellectual property lawsinRussia sincethere isnocourt withauthority toreview
decisions from bothcourt systems andresolve differences ofinterpretation.WT/ACC/RUS/13
Page38
Weunderstand thatthought isbeing given tocreating acourt justforIPRcases. Isthisthecase?
Ifso,wewould beinterested tolearn thestatus ofthiseffort andthetimeframe within which
Russia contemplates itsenactment inlaw.
Answer
Thejudicial system oftheRussian Federation doesnotinclude anyspecialized courts forthe
protection ofintellectual property rights noristheirestablishment contemplated inthedraftofthe
Federal LawOntheJudicial System intheRussian Federation.
Question 79
Article 61oftheTRIPS Agreement requires thatcriminal penalties beavailable atleastforcases
ofwilful trademark counterfeiting andcopyright piracy. These penalties, including imprisonment
andmonetary fines, aretobesufficient toactasadeterrent. Currently, thepenalties inRussia 's
Criminal Code areinsufficient todeter therampant piracy andcounterfeiting taking place in
themarketplace.
What steps isRussia willing totaketoaddress thisdeficiency?
Answer
SeeAnswer 47.
Question 80
Weunderstand thataPresidential Decree waspublished aweek agothatbolsters theroleofthe
Ministry ofJustice inoverseeing theimplementation ofState policy where intellectual property
isconcerned.
(a) Please describe theprovisions ofthisdecree with particular attention totheir
correspondence withtheprovisions oftheTRIPS Agreement.
(b) What istheimplementatolsters theroleoftheMinistry ofJustice inoverseeing the
implementation ofState policy where intellectual property isconcerned.
(c) Please describe theprovisions ofthis decree with particular attention totheir
correspondence withtheprovisions oftheTRIPS Agreement.
(d) What istheimplementation status ofthedecree?
(e) What areRussia 'sexpectations intheIPRfieldforenactment ofanewCriminal Code,
andwhen?
Answer
ThePresident oftheRussian Federation on2May1996, issued aDecree OnMeasures to
Develop Justice Agencies oftheRussian Federation, which entrusted theMinistry ofJustice withthe
implement ofState policy ontheprotection ofintellectual property. Inaccordance withthisDecree,
theMinistry iscurrently working outaConceptual PlanfortheDevelopment ofJustice Agencies and
drafting theFederal LawOnJustice Agencies, which willdetail theroleoftheMinistry ofJusticeWT/ACC/RUS/13
Page39
inexercisingsupervisionovertheimplementationofStatepolicywithrespecttothedefenceofintellectual
property rights.
AsfarastheCriminal Code oftheRussian Federation isconcerned, itwas,ashasalready
beenreported, adopted on17June1996, andwillenter intoforce on1January 1997. Itcontains a
number ofadditional legalnorms contributing toabetter protection ofcopyright andamore effective
fightagainst intellectual property piracy.
SeealsoAnswer 47.
Question 81
Under TRIPS Article 27,either apatent system orsuigeneris system must provide IPprotection
forplant varieties. TheRussian system appears tobesome kindofsuigeneris system, butthe
terminology issomewhat unclear. Could Russia provide more details inthisarea?
Answer
SeeAnswer 75.
Question 82
TRIPS Article 27relates topatentable subject matter. Does Russia 'spatent system provide that
thefollowing arepatentable: genes (ofknown function); pharmaceuticals.
Answer
Apharmaceutical preparation oragenemaybepatented inRussia. Asarule,theyarepatented
asasubstance.
Question 83
Article 30oftheAgreement permits some exceptions topatent rights. DoestheRussian Federation
provide foranysuchexceptions?
Answer
ThePatent LawoftheRussian Federation (Article 11)provides forcertain exceptions from
thepatentee 'sexclusive rights which areconsistent withArticle 30oftheTRIPS Agreement. Seealso
Answer 53.
Question 84
Article 31permits some useofpatents without authorization ofthepatent holder. Thedocument
states thatapatent holder mayrequire another patentee toenter intoalicensing agreement with
him,ifheisunable tousehisinvention without infringing theother patentee 'srights. What are
theprovisions andspecific procedures?
AnswerWT/ACC/RUS/13
Page40
Thismatter iscurrently dealt withinfairly general form byArticle 10,paragraph 5ofthe
Russian Patent Law. Theissue ofamending thisclause tospecify theprocedure andconditions for
theenforcement oftherespective provision iscurrently being discussed.
Question 85
Article 50provides forprovisional remedies. With reference toQ.177,could Russia provide
more details onprovisional remedies, including exparte remedies?
Answer
SeeAnswer 46.
Question 86
What arethegrounds tochallenge apatent, onceissued? Aretheyrestricted topatent validity?
Maythere beopposition onthegrounds ofmorality orpublic interest?
Answer
Inaccordance withArticle 29ofthePatent LawoftheRussian Federation, apatent maybe
challenged inkeeping withtheprocedure established inthisArticle andinvalidated (infullorinpart)
onthefollowing grounds:
- failure ofthepatented industrial property assettomeettheconditions ofpatentability (including
correspondence topublic interests andtheprinciples ofhumanity andmorality) established
bythePatent Law(Articles 4(3)and6(2));
- iftheclaims ofapatented invention orutility model orthetotality oftheessential attributes
ofanindustrial design includes features which were absent intheinitial materials ofthe
application; or
- ifthepatent wrongly names theauthor orpatentee.