 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/RUS/20 
23 May 2001 
 (01-2627) 
Working Party on the 
Accession of the Russian Federation Original:   English 
 
 
ACCESSION OF THE RUSSIAN FEDERATION 
Overview of the Current Trade Policy Regime of the Russian Federation  
Note by the Russian Federation  
 This contribution is intended to provide the basis for focussed discussion between 
interested members of the Working Party and the Russian Delegation on specific elements of Russia's trade policy regime at the next meeting of the Working Party scheduled for 26 and 27 
June 2001. 
__________ 
BACKGROUND  
1. The Government of the Russian Federation applied for accession to the General 
Agreement on Tariffs and Trade (GATT 1947) in June 1993.  At its meeting on 8 July 1993, the GATT Council of Representatives established a Working Party to examine the application of the Government of the Russian Federation to accede to the General Agreement under Article 
XXXIII.  In pursuance of the Ministerial Decision of 14 April 1994 on Acceptance and 
Accession to the Marrakesh Agreement Establishing the World Trade Organization (WTO) and to the decision of 31 May 1994 of the Preparatory Committee for the WTO, the Working Party examined the application of the Government of the Russian Federation for membership in the WTO.  Following the entry into force of the WTO Agreement on 1 January 1995, and in 
pursuance of the decision adopted by the WTO General Council on 31 January 1995, the GATT 
1947 Working Party was transformed into a WTO Accession Working Party under Article XII of the Marrakesh Agreement Establishing the WTO. The Working Party met on 17-19 July 1995, 4-6 December 1995, 30-31 May 1996, 15 October 1996, 15 April 1997, 22-23 July 1997, 9-
11 December 1997, 29 July 1998, 16-17 December 1998, and 25 May 2000 under the 
Chairmanship of H.E. Mr. W. Rossier (Switzerland) and on 18 December 2000 under the Chairmanship of H.E. Mr. K. Bryn (Norway). WT/ACC/SPEC/RUS/20 
Page 2  
 
 Documentation  
2. The Russian Federation presented to the Working Party Members a Memorandum on 
the Foreign Trade Regime of the Russian Federation (L/7410), responded to the questions 
submitted by Members on the foreign trade regime of the Russian Federation, together with the replies thereto (see in particular WT/ACC/RUS/2 and Corr.1, WT/ACC/RUS/4, WT/ACC/RUS/9 and Corr.1, WT/ACC/RUS/13, WT/ACC/RUS/17 and Corr.1 
WT/ACC/RUS/23, WT/ACC/RUS/25, WT/ACC/RUS/30, WT/ACC/RUS/38) and provided other 
information listed in document WT/ACC/RUS/11/Rev.11 (on the legislative texts and other documentation see Reference paper 1
1). Russian Federation had been an observer to the 
GATT 1947 since January 1992 when Russia continued the former USSR observer status and, in this capacity, had witnessed the successful conclusion of the Uruguay Round and followed its 
implementation.  Since its request for accession to the WTO and pursuant to the reform of its 
trade regime, the Russian Federation had progressively adopted laws and regulations consistent with the WTO multilateral rules and disciplines. As a result of the Government’s concerted efforts to encourage free market and entrepreneurial activity and to facilitate foreign 
investment, the economy of the Russian Federation had been heading towards greater economic 
stabilization and growth.  The Government also made substantial efforts to combat inflation and control the budgetary situation of the country.  Membership in the World Trade Organization was therefore one important missing aspect in the Russian Federation’s trade 
policy. WTO membership was one of the priorities of the Governmental program of economic 
reforms. 
ECONOMIC POLICIES  
Monetary and Fiscal Policy  
3. Current economic policies were aimed at achieving fiscal and monetary stability in the 
country.  The budget deficit had been reduced and finally eliminated through expenditures 
restraint and increased revenues.  On the revenue side, a renewed tax base system accompanied by more efficient tax collection instruments, including the introduction of a new Tax Code Part One of 31July 1998 No. 146-FZ (as amended on 30 March, 9 September 1999, 2 January 2000) 
and Part Two of 5 August 2000 No. 117-FZ (as amended on 29 December 2000) which puts 
Russia’s taxation system in compliance with relevant WTO requirements. The current Russian Federation’s monetary policy was aimed at maintaining a degree of monetary stability adequate 
                                                     
 
1 Reference Papers 1 to 14 available in document WT/ACC/SPEC/RUS/21.  WT/ACC/SPEC/RUS/20 
 Page 3 
 
 
 to ensure price stability. This objective was being achieved by controlling money supply, 
consolidating foreign currency reserves and reducing foreign currency restrictions at the same 
time.  
Foreign exchange and payments system 
4. The Russian Federation, as a member of the International Monetary Fund since 1992, 
followed internationally accepted monetary rules.  The national currency - the Rouble (equal to 
100 Kopecks) - was being converted to other currencies at the rates depending on currency 
market rates based on supply and demand.  The Russian Federation had accepted the commitments of Article VIII, sections 2, 3 and 4 of the Articles of Agreement of the International Monetary Fund.  Current payments understood as specified provisions of foreign exchange legislation in the Russian Federation and in accordance with the Articles of 
Agreement of the International Monetary Fund were not restricted. Outward transfers of 
returns and other proceeds from foreign investments were  
not restricted,   but transfers of 
returns and other proceeds from foreign investments into state securities were subject to  
confirmation procedure by the Central Bank.  The Russian Federation implemented measures 
of currency regulation and currency control which in itself did not constitute limitation for 
trade in goods and services,  within the framework of its policies to combat illegal transfer of capital and to maintain the integrity of the financial system of the country. Moreover, procedures connected with implementation of currency regulation and currency control 
measures were not designed as means of avoiding the Russian Federation’s future commitments 
under WTO Agreements. 
5. Export proceeds are subject to repatriation requirements within the framework of 
currency regulation and the currency control system.  There were no subsidies on purchases and sales of foreign exchange.  The fees for transactions of sale and purchase of foreign 
currency  were determined freely by the market., e. g. by commercial banks. The tax for 
purchase of foreign currency amounted to 1 per cent . The interconnection between the 
country’s policies in the field of foreign exchange and the need to stabilise foreign debt servicing. 
Investment Regime   
6. Although the investment policy, per se , was not covered by WTO actual provisions, 
Russia provided the information in the following paragraphs, given the importance of this policy in the shaping of the country’s overall economic policy. WT/ACC/SPEC/RUS/20 
Page 4  
 
 7. The basic texts relating to the activities of foreign investors are set forth in the 
Constitution of the Russian Federation adopted on 12 December 1993, the Civil Code Part One 
30 November 1994 No. 51-FZ and Part Two of 26 January 1996 No. 14-FZ (as amended on 20 
February, 12 August 1996, 24 October 1998, 8 July, 17 December 1999), and a number of other legislative acts such as the Federal Law “On Foreign Investment in the Russian Federation” No. 160-FZ of 9 July 1999, the Federal Law “On Investment Activity in the Russian Federation in 
the form of capital investment” No. 39-FZ of 25 February 1999 (as amended on 2 January 2000) 
and the Federal Law “On Production Sharing Agreement” of 30 December 1997 No. 225-FZ (as amended on 7 January 1997).  
8. The Government of the Russian Federation had entrusted the Ministry of Economic 
Development and Trade with a wide range of responsibilities in the field of foreign investments, 
such as co-ordination role on the corresponding activities of federal and regional bodies, 
organisation of tenders, concession agreements, production sharing agreements and bilateral investment agreements. 
9. A government programme adopted by the Resolution of the Government of the Russian 
Federation “On Complex Programme of Encouraging of the Foreign and Native Investments 
into Economy of the Russian Federation” No. 1016 of 13 October 1995 was in place to encourage investments in the Russian Federation.  Similar programmes are also in place to attract domestic and foreign investments in Russian regions, taking into account local conditions and 
experience. The Russian legislative acts mentioned above provided proper guaranties for 
protection of foreign investors’ rights and interests and advantageous conditions for foreign investors and enterprises with foreign investments within national investment legislation and in conjunction with international treaties signed by the Russian Federation.  
State ownership and privatization  
10. Although privatization policy per se  was not covered by WTO actual provisions, Russia 
believed that for the purpose of transparency it could be interesting to the members of the Working Party to get a more close look on this important part of Russia’s internal economic policy (on the information about privatization processes in the Russian Federation see 
Reference paper 2).  WT/ACC/SPEC/RUS/20 
 Page 5 
 
 
 Pricing Policies 
11. The main goal of the economic policy pursued by the authorities was to introduce the 
principle of free market price formation based on supply and demand.  Therefore, prices in the 
vast majority of sectors in the Russian economy were determined freely by market forces thus balancing between supply and demand.  
12. Pricing in sectors where natural monopolies existed (namely in the sector of natural gas; 
electric and thermal energy; pumping, transhipment and storage of oil, railway transportation, 
services of transport terminals, sea and river ports, airports, services of generally accessible electric and postal communication services); and products purchased exclusively or mainly by the State such as defence products are based on production costs and are established in a way which excludes abuse by the producer/supplier of its monopoly position.. In addition to that, in 
respect of air, road and river transport services sectors involving competing groups of carriers, 
the carriers themselves have the right to set their prices within established profit margins.  Regional governments regulated prices for products and services classified as local natural monopolies. These included gas and solid fuel sold to the population, transportation of 
passengers and luggage by all means of public transport in municipal transport networks, 
communal services to households, water supply and sewerage services. At the regional government level, prices for electrical energy provided by regional electrical power-plants were regulated, as well as prices for all means of commuter passenger transportation (except 
railways), communal services for the population (including rent), and public utilities.  Fixed 
prices were established for such products and services. 
13. Decree of the President of the Russian Federation “On measures to streamline the state 
regulation of prices (tariffs} of 28 February 1995  No. 221 (as amended on 8 July 1995) and Resolution of the Government of the Russian Federation “On measures to streamline the state 
regulation of prices (tariffs)” of 7.March  1995 No. 239 (as amended on 8 February, 15 April, 
31 July 1996, 30 June 1997, 30 July, 28 December 1998, 6 February 2001), established the main principles of the state regulation of prices (tariffs) on the domestic market of the Russian Federation, carried out by the Government of the Russian Federation, federal authorities and 
sub-federal bodies of executive power for the concrete types of goods and services (see also 
Reference paper 3). WT/ACC/SPEC/RUS/20 
Page 6  
 
 Competition Policy  
14. The Government attached great importance to competition policy. Noting that it was not 
fully covered by current WTO provisions., the Russian Federation followed closely the work of 
the WTO Working Group on the interaction between trade and competition policy.  The Federal Government programme entitled “State Program on Demonopolization of the Economy and Development of Competition in Markets of the Russian Federation” adopted by Resolution 
of the Government No. 191 dated 9 March 1994 (as amended on 4 September 1995, 15 May 
1998) was developed to decentralise production and create favourable conditions for enhancing competition.  Similar programmes were also developed at regional level.  The basic goal of competition policy is to promote and maintain healthy inter-company competition in markets, wherever this is viable.  This was being achieved in two main ways: first, anti-competitive 
market structure and enterprise practices that impeded competition could be addressed 
through the application of the Anti-monopoly Law; second, measures maintained by federal or regional executive bodies that posed unnecessary obstacles to economic development and competition should be reduced or eliminated. 
15. Federal laws had been adopted, including the Federal Law “On Competition and 
Restriction of Monopoly Activity on Commodity Markets” No. 948-1 of 22 March 1991 (as amended on 24 June 1992, 25 May 1995 and 2 January 2000), the Federal Law  “On Making Amendments and Supplements to the Federal Law “On Consumers Rights Protection” and the 
Code of the RSFSR On Administrative Offences” No 2-FZ of 9 January 1996 (as amended on 17 
December 1999)  and the Federal Law “On Protection of Competition in the Financial Services Market” No 117-FZ of 29 December 1999, Resolution of the Government No 994 of 7 March 2000 “On Conditions of Anti-monopoly Control on Financial Services Market and Adoption of the Principles of Determination of Transaction and Borders of the Financial Services”. The 
Russian legislation in force contained, therefore, all the basic elements of anti-competitive 
control over cartels (fixing of prices and production etc.), abuse of dominant position (obstruction to market access, excessive pricing etc.), economic concentration (mergers & acquisitions etc.).  Another important element of the Russian anti-monopoly legislation was the 
control over unfair competition.  The Ministry for Anti-monopoly Policy and support of 
entrepreneurship was responsible for state competition policy.   
16. The main functions of the Ministry on Anti-monopoly policy and support of 
entrepreneurship included introducing legislative initiatives in the field of anti-monopoly activity, developing and executing measures on demonopolization of production and  WT/ACC/SPEC/RUS/20 
 Page 7 
 
 
 distribution, monitoring compliance with anti-monopoly requirements in the establishment, 
reorganization and liquidation of economic enterprises and preventing the operation of cartels 
and the abuse of dominant position in specific markets.  The Ministry conducted a preliminary 
review of the establishment and mergers of unions, associations, concerns, groups of enterprises from different industries and regional groups of enterprises.  One of the functions of the Ministry was connected with control over and combating preferences given to one or several 
economic operators and granting them a better position as compared with that of other 
economic operators.  Within the year 2000, the MAP of Russia considered 6,510 claims in connection with respective violations, in 5,077 (78 per cent) of cases МАР  of Russia got proof of 
infringements, in 1,764 cases violations were eliminated or other administrative orders were brought into effect, in  3,441 cases penalties were imposed. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Branches of State Power, Federal Structure and Delimitation of Jurisdiction between Federal 
and Sub-Federal Authorities 
17. In accordance with the Constitution, State power in the Russian Federation was 
exercised by the President of the Russian Federation, the Federal Assembly (the Council of the 
Federation and the State Duma), the Government of the Russian Federation, and the courts of the Russian Federation. 
18. The President of the Russian Federation was the Head of State.  He determined the 
guidelines of domestic and foreign policies of the State. Pending a resolution of the matter by the 
appropriate court,  the President had the right to suspend the operation of acts of the executive power bodies of the “subjects”
2 of the Russian Federation if they were not in compliance with 
the Constitution of the Russian Federation, federal laws and international commitments of the Russian Federation. 
19. The Federal Assembly (the Parliament of the Russian Federation) was the 
representative and legislative authority of the Russian Federation.  It consists of two chambers - the Council of the Federation and the State Duma.  The Council of the Federation included two representatives from each subject of the Russian Federation: one from the legislative and one 
from executive body of state power. Order of formation of the Council of the Federation is also 
                                                     
 
2 Proceeding from Article 5 (1) of the Constitution of the Russian Federation, the term “subjects” of the Russian 
Federation includes republics, regions, oblast, cities of  federal importance, autonomous regions and autonomous 
areas. Article 65 of the Constitution contained the exhaustive list of  “subjects” of the Russian Federation. 
 WT/ACC/SPEC/RUS/20 
Page 8  
 
 determined by the Federal Law “On the Order of Formation of the Council of the Federation of 
the Federal Assembly of the Russian Federation” of 5 August 2000 No. 113-FZ.  The State 
Duma consisted of 450 deputies elected for a term of four years.  Formation of the State Duma 
was determined by the Federal Law “On Election of Deputies to the State Duma of the Russian federation” of 21 June 1999 No. 121-FZ. 
20. Both chambers were involved, inter alia, in the adoption of the federal laws on federal 
budget, federal taxes and dues, financial, currency, credit, customs regulation and monetary 
issues, ratification and denunciation of international treaties and agreements of the Russian Federation. 
21. Executive power in Russia was exercised by the Government of the Russian Federation. 
The Government, inter alia, ensured the implementation in the Russian Federation of a single 
trade, financial, credit and monetary policy, the implementation of foreign policy, the 
implementation of measures required to ensure the rule of law as well as establishing customs tariffs. 
22. The right of legislative initiative was vested with the President of the Russian 
Federation, the Council of the Federation, the Members of the Council of the Federation, the 
Deputies of the State Duma, the Government of the Russian Federation, and the legislative bodies of the subjects of the Russian Federation. The right of legislative initiative was also vested with the Constitutional Court of the Russian Federation, the Supreme Court of the 
Russian Federation, the Supreme Court of Arbitration of the Russian Federation in matters 
under their jurisdiction. 
23. The judicial system of the Russian Federation was instituted by the Constitution of the 
Russian Federation and Federal Constitutional Laws “On Judicial System of the Russian Federation” of 31 December 1996 No. 1-FKZ, “On Constitutional Court of the Russian 
Federation” of 21 February 1994 No. 1-FKZ (as amended on 8 February 2001), “On Arbitration 
Courts in the Russian Federation” of 28 April 1995 No. 1-FKZ.  Judicial power was exercised by means of constitutional, civil, administrative and criminal court proceedings.  Justice in the Russian Federation was exercised by courts only. 
24. The Republics within the Russian Federation had their own constitutions and 
legislation.  The territories, regions, cities of federal importance, autonomous regions
 and 
autonomous areas have their charters and legislation.  Legislation of the subjects of the Russian  WT/ACC/SPEC/RUS/20 
 Page 9 
 
 
 Federation should not contradict the federal legislation adopted within the jurisdiction of the 
Russian Federation and the joint jurisdiction of the Russian Federation and its subjects. 
25. The Constitution provided for the clear jurisdiction of the Russian Federation and the 
joint jurisdiction of the Russian Federation and its subjects. 
26. The jurisdiction of the Russian Federation included inter alia the establishment of the 
principles of federal policy and federal programmes in the sphere of state, economic, ecological, 
social, cultural and national development of the Russian Federation; of legal groups for a single 
market as well as financial, currency, credit, and customs regulation, monetary issues, the principles of pricing policy; federal economic services, including federal banks, federal budget, federal taxes and dues, federal funds of regional development, foreign policy and international relations of the Russian Federation, international treaties and agreements of the Russian 
Federation, issues of war and peace, foreign economic relations of the Russian Federation, 
federal power systems, nuclear power-engineering, fission materials, federal transport, railways, information and communication, outer space activities.  
27. The joint jurisdiction of the Russian Federation and the subjects of the Federation 
included, inter alia, issues relating to the ownership, use, and disposal of land, mineral 
resources, water and other natural resources; delimitation of state property; establishment of general principles of taxation and levying of duties in the Russian Federation;  co-ordination of the international and foreign economic relations of subjects of the Russian Federation, and the 
fulfilment of the Russian Federation’s international treaties. 
28. Generally recognised principles and norms of international law and international 
treaties to which the Russian Federation was party were constituent part of its legal system.  If an international treaty to which the Russian Federation was party provided for other rules than those set forth by Russian Federation domestic law, the rules of the international treaty apply.  
29. According to Article 3 of the Federal Law No. 157-FZ of 13 October 1995 “On State 
Regulation of Foreign Trade Activity” (as amended on 8 July 1997, 10 February 1999) foreign trade activity in the Russian Federation was regulated by the Constitution of the Russian Federation, federal laws and other legal acts of the Russian Federation and by the international 
treaties to which the Russian Federation is a party.  Article 6 of said Law provided for inter alia , 
the jurisdiction of the Russian Federation to form the concept and strategy of the development of foreign trade relations and the basic principles of the foreign trade policy; to ensure the economic security and protection of the economic sovereignty and economic interests of the WT/ACC/SPEC/RUS/20 
Page 10  
 
 Russian Federation, as well as the economic interests of the subjects of the Russian Federation 
and of the Russian persons and to conclude the international treaties of the Russian Federation 
in the field of foreign economic sphere. 
30. Federal Law No. 4-FZ of 2 December 1998 “On Co-ordination of International and 
Foreign Economic Ties of the Subjects of the Russian Federation” provided, inter alia , the 
regions with the right to negotiate and conclude agreements with their partners on international 
and foreign economic ties.  Such agreements could not contradict federal legislation and the 
international commitments of the Russian Federation.  The Law made it compulsory for the subjects to notify the appropriate federal authorities before entering into negotiation and set forth a procedure of a prior approval of the draft agreed text of the agreement by the appropriate federal authorities.  The agreements concluded by the subjects of the Russian 
Federation were not considered international treaties.  
31. As noted above, the right to conclude international treaties falls within the jurisdiction 
of the Russian Federation.  But if an international treaty of the Russian Federation affected issues falling within the jurisdiction of the subjects of the Russian Federation, such treaty 
should be concluded in co-ordination with of state power bodies of interested subjects of the 
Russian Federation. This rule was provided for by Federal Law No. 101 FZ of 15 July 1995 “On international treaties of the Russian Federation”. As regards international treaties of the Russian Federation affecting issues falling within the joint jurisdiction of the Russian 
Federation and the subjects of the Russian Federation, the Law establishes that federal bodies 
of executive power should send the main provisions or the draft of a prospective treaty to the state power bodies of the interested subject of the Federation. Proposals received from the subjects are considered in the course of preparation of the draft of the international treaty. 
32. Any administrative decision on issues covered by the WTO Agreement could be 
appealed. Depending on the issue concerned appeals could be addressed either to the 
Government or its agency which controlled the activity of the body responsible for such decision, or the court of respective jurisdiction.  
POLICIES AFFECTING TRADE IN GOODS Registration Requirements 
33. The elimination of the State monopoly in foreign trade was proclaimed by the Decree of 
the President No. 213 of 15 November 1991 “On Liberalization of Foreign Economic Activity on  WT/ACC/SPEC/RUS/20 
 Page 11 
 
 
 the Territory of the Russian Soviet Federal Socialist Republic” (as amended on 27 October 
1992) under which all enterprises were given the right to carry out foreign economic activities, 
whatever their form of ownership. This principle was further provided by the Civil Code and 
the Constitution of the Russian Federation. The State did not restrict the right of persons or entities to import or to export. 
34. The trading rights in foreign trade on the territory of Russia had been further 
promulgated by the enactment on 13 October 1995 of the Federal Law “On the State Regulation 
of the Foreign Trade Activity” No. 157-FZ. This Law (Article 10 and 2) permitted all registered legal and natural persons within the Russian Federation to undertake foreign economic activity, regardless of the form of their property and without any special permission. 
35. State registration of legal entities and natural persons as individual entrepreneurs was 
performed in accordance with Article 51 of the Civil Code and Presidential Decree “On 
Streamlining of State Registration of Enterprises and Entrepreneurs in the Territory of the Russian Federation” of 8 July 1994 No. 1482. Registration of a legal entity required submission of an application, the charter of the legal entity in question approved by its founders, 
documentary confirmation of payment of no less than 50 per cent of the charter capital of the 
firm, and certificate of payment of state duty in the amount of 252 roubles. Registration of a natural person required application from such person and a document confirming the payment of the registration charge in the amount of 100 roubles. Denial of registration may be appealed 
through a judicial procedure. The registration act permits the enterprise/individual 
enterpreneur to engage in economic activity, including foreign economic activity. 
36. The only exception is the importation and exportation of alcoholic beverages. Pursuant 
to the Federal Law “On State Regulation of Production and Turnover of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products” of 22 November 1995 No. 173-FZ (as amended on 
7 January 1999) natural persons and legal entities wishing to do business in these areas must 
obtain activity licence in the agencies of the Ministry of Tax Collection after their state registration. Conditions and requirements to be fulfilled by the enterprises and entrepreneurs dealing in this sphere were stipulated by Articles 18 – 21 of the said Law. Licensing fees 
provided by the Federal Law No. 5-FZ “On Charges for Issuance of Licenses for Production 
and Turnover of Ethyl Alcohol, Alcohol Containing - Products” of 8 January 1998. Licensing fees were as follows.  
Licensing fees structure for manufacturing, storage, 
 
wholesale, exportation and importation of alcoholic beverages  WT/ACC/SPEC/RUS/20 
Page 12  
 
 Types of Activity Licence fees (in minimum wages) Equivalent in Rubles 
Manufacturing and wholesale of 
alcoholic beverages 500 50,000 
Exportation of alcoholic 
beverages 100 – 500 10,000 – 50,000 
Importation, storage and 
wholesale of alcoholic beverages 1,000 – 15,000 10,000 – 1,500,000 
 
37. Once a company obtained such an activity licence it would eligible for import and 
export licenses each time it might wish to import or export goods subject to licensing. 
38. All concerned federal agencies had amendments agreed to the required the law to 
achieve compliance with WTO rules. 
39. The registration requirement for export contracts was introduced by Resolution of the 
Russian Government of 1 July 1994 No. 758, and was entirely repealed by Resolution of the 
Russian Government of 21 March 1996 No. 300. Registration of import contract has never been practised in Russia. Thus Russia did not maintain any special registry of import or export contracts. 
Customs Regulations and Customs Tariff 
40. Russia had been an active member of the World Customs Organization even before 
gaining full membership on 8 July 1993. Russia had joined the International Convention on the Harmonized Commodity Description and Coding System on 1 January 1997. The Customs Tariff Law and the Customs Code constituted the legal framework for the customs regime of 
Russia. The right of appeal against decisions of Customs was ensured inter alia  in Articles 17 
and 404-419 of the Customs Code. The Customs Code had been applied with minor changes since 1993. The new draft of the Customs Code contained provisions on customs procedures and customs administration system in full conformity with the relevant WTO Agreement. 
Ordinary Customs Duties 
41. The structure of customs tariffs was regulated by the Law “On Customs Tariff”, which 
had entered into force on 1 January 1994 (as amended 7 August, 25 November and 27 December 1995, 5 February 1997, 10 February and 4 May 1999, 27 May 2000). Tariff rates could be changed by government decisions based on proposals of the Governmental 
Commission on Customs and Tariff Policy and Trade Remedies Measures, taking also into 
account of Russia’s international commitments.  WT/ACC/SPEC/RUS/20 
 Page 13 
 
 
 42. The Resolution of the Government № 1560 of 27 December 1996 had introduced a 
commodity description and classification system based on HS 96, replacing as from 1 January 
1997 the HS 92 previously used. A new commodity description and classification system would 
enter into force from 1 January 2002 based on HS 2002. The customs tariff consisted of 11,032 tariff lines. The significant majority of tariff items (were subject to ad valorem  tariffs, but 1,515 
tariff items were subject to compound (mixed) rates ( ad valorem  and specific duties) and 76 
tariff items were subject to specific rates (apples, chocolate, beer and strong alcoholic 
beverages). The ad valorem  rates and ad valorem  equivalents of combined and specific rates 
multiple of 5 and range from 0 to 30 per cent except for strong alcoholic beverages. 
Tariff structure
 
 
Tariff rate (per cent) Number of tariff items 
0 46 
5 3,989 
10 1,890 
15 3,120 
20 1,824 
25 108 
30 5 
above 30 50 
Tabulation of the trade weighted average customs tariff rates  
 
Year Percentage 
1995 16.0 
1996 17.7 
1997 13.3 
1998 12.8 
1999 11.7 
2000 11.4 
2001(estimated) 10.7 
 
43. The tariff rates are established following the basic criteria that (i) tariffs are the major 
trade policy measure applied to protect domestic industrial and agriculture production; (ii) 
tariffs are considered measures of both trade and fiscal policy; (iii) tariffs are a function of economic development, in particular, the technological restructuring of the economy. The most recent version of the Customs Tariff of the Russian Federation was introduced by the Resolution of the Government № 148 of 22 February 2000 (as amended on 27 November 2000) 
which contained MFN rates of import customs duties for all 11,032 tariff lines. The rates of 
customs duties applicable to the products originating from the countries with which Russia did not apply MFN treatment were twice higher then MFN rates. The import customs duties WT/ACC/SPEC/RUS/20 
Page 14  
 
 applicable to products originating from the countries enjoying the Russia’s GSP scheme and 
being the subject of their traditional exports were levied at the level of 75 per cent of the MFN 
rates (except for raw sugar where a tariff rate quota mechanism was used). 
44. The products with the seasonal character of production or consumption could be levied 
by seasonal duties instead of basic import duties. The duration of implementation of such seasonal duty for the specific tariff item during one calendar year could not be more than six 
months. The general nature, structure and rules of application of such seasonal duties were 
same as for the basic import customs duties. 
45. Resolution of the Government No. 886 of 27 November 2000 substantially revised 
downwards and levelled out the customs duties (in approximately 3,500 tariff positions out of 11,032). As a result of this unification, customs tariffs for nearly all goods categories were 
grouped under broader headings (raw materials, semi-finished products, finished products, 
foodstuffs) with duty levels of 5, 10, 15 and 20 per cent, respectively. These changes, which took effect on 1 January 2001, were aimed at liberalization of imports to Russia of modern technologies and machinery, fighting illegal practices at customs and improving the 
effectiveness of customs payment collection. 
Tariff Quotas, Tariff Exemptions 
46. The Law on Customs Tariff provided the legal framework for the establishment of tariff 
rate quotas as a part of free trade agreements and GSP scheme. These tariff quotas could be 
applied for agricultural and industrial goods. In general, tariff rate quotas allowed import at 
zero (or reduced) tariffs. The only tariff rate quota now in place (on raw sugar originating from the countries enjoying the Russia’s GSP scheme) had been opened under Government Resolution № 572 (27 July 2000) and had been allocated under the auction mechanism. 
47. Exemptions from payment of customs duty could be granted only in accordance with the 
provisions of the Law ”On Customs Tariff”. Article 35 of the said Law established the list of 
goods not subject to customs duties such as goods in transit; printed or recorded materials related to culture, science, education, items imported by foreign diplomatic and consular offices in Russia in accordance with their needs and requirements for official purposes; articles for 
personal use when travelling abroad; goods destined for disaster relief and humanitarian 
purposes; industrial and other equipment, related to foreign investment, etc. Exemptions could be also granted under Articles 34, 36 and 37 of the Law (commitments under international agreements) on the basis of tariff rate quotas, tariff preferences, free trade agreement and GSP  WT/ACC/SPEC/RUS/20 
 Page 15 
 
 
 scheme. Tariff exemptions other than those provided for in the context of a free trade 
agreement or GSP scheme were applied on a MFN basis  (see also Reference paper 4). 
Other Duties and Charges 
48. Russia does not apply at present duties and charges on imports other than ordinary 
customs duties and charges for services rendered.  
Fees and Charges for Services Rendered 
49. Fees for the customs services stipulated in accordance with the Article 110 of the 
Customs Code, which contained the list of such fees. These fees and charges were related to the approximate cost of the services rendered. Revenues generated by those fees were remitted to the general revenues in the State budget. 
Fees and charges for customs services rendered related to 
 
importation or exportation  
Description of Service Rendered/Purpose of Fees Rate Applied 
Customs charge for customs clearance 0.1 per cent of the customs value of the goods 
in rubles * 
Additional customs charge for customs clearance 0. 05 per cent of the customs value of goods in 
foreign currency  
Customs charges for storage of  goods in temporary storage 
warehouses, where the goods to be placed before the 
customs clearance**, *** 
- the same in specially designed warehouses 
- in customs warehouses for goods placed under the 
customs warehouse regime  
 
0.02 euro/kg of gross weight for every 24 hrs 
0.03 euro/kg of gross weight for every 24 hrs 
0.04 euro/kg of gross weight and 3 
euro/vehicle per every 24 hrs 
Customs charges for cust oms escort of goods 
a) for each motor and rail way ve hicle utilized either for the 
transportation of goods or which moves under its own 
power to be used as a commodity  
- for the distance up to 50 km - for the distance from 50 to 100 km 
- for the distance from100 to 200 km 
- for the distance over 200 km  
  
 
20 minimum wages (2,000 rubles) 30 minimum wages (3,000 rubles) 
40 minimum wages (4,000 rubles) 
60 minimum wages (6,000 rubles) 
Payment for the information and consultation 0.2-50 US$ depending upon the amount the 
information provided and short notice 
Payment for taking preliminary decision on classification of 
goods according to HS codes 5 minimum wages (500 rubles) 
* The State Customs Committee may reduce custom s charge for customs clearance to zero  
**  For the warehouses established by customs authorities only  
*** The customs authorities may reduce the charges for storage by half of the maximum  
50. The stamp tax (i.e. State fees and charges) applicable for the processing of imports or 
exports by customs and for other purposes related to trade were established in accordance with the Federal law № 226-FZ of 31 December 1995 “On introducing the amendments and additions WT/ACC/SPEC/RUS/20 
Page 16  
 
 to the law of Russian Federation on the state duty” (with amendments and additions of 20 
August 1996; 19 July 1997; 21 July 1998; 13 April 1999), the state duty shall be collected for the 
performance of legally valid actions or for the issue of documents by the bodies or by the official 
persons, authorized for this.  
State Fees and Charges related  to imports and exports
 
 
Service rendered/type of Fees and Charges Rates applied ∗ 
For committing notary actions by the notaries of the 
state notary's offices or by  official persons of the 
executive power bodies, the bodies of local self-
government and of the consular institutions 
authorized for this and also for their compiling the drafts of the documents and issuing the copies and 
duplicates of the documents, the state duty shall be 
levied in the following amounts:  
1. for the attestation of ag reements the subject of 
which is subject to evaluation - 0.5 per cent of the sum for 
- which the obligation is assumed but at least 30 
per cent of the minimal wage 
2. for the attestation of agency agreements -  1.5 per cent of the sum of  the agreement but at 
least 50 per cent of the minimal wage  
3. for the certification of other warrants -  20%  of the minimum wage  
4. for effecting a captain's protest -  a 15-fold minimum wage  
5. for testifying to the correctness of a document's 
translation from one language into another - 10% of the minimum wage per 1 page of  the 
document's translation 
6. for accepting in deposit of moneys and  securities  -  0.5 per cent of accepted monetary sum and the 
value of securities 
7. for testifying to the correctness of the copies of 
other documents and of the extracts from documents - 1%  of the minimum wage per 1 page 
8. for testifying to the authenticity of the signature: 
-  on applications and on other documents  (with 
the exception of the bank cards)  -  on bank cards (from every person and on every 
document)  
- 5% of the minimum wage  
 - 1 minimum wage  
9. for the issue of duplicates of the documents, kept 
in the cases of the state notary's offices, executive 
power bodies and consular institutions - 50%  of the minimum wage  
10. for performing other notary actions  -  50% of the minimum wage  
11. for the performance of the technical work  for the 
making of documents - two per cent of the minimal wage per page 
 
Consular Fees 
51. Consular fees were collected in accordance with the legislation of the Russian 
Federation, Consular Articles provisions, the present Tariff approved on 29 June 1993 and 28 March 1994, as well as international treaties of the Russian Federation. Payment collected by                                                      
 
*The minimum wage is roughly 3.2 USD  WT/ACC/SPEC/RUS/20 
 Page 17 
 
 
 consular offices of the Russian Federation for executing abroad the consular acts or issuance of 
the documents of legal significance to citizens of foreign states, foreign legal entities, stateless 
persons, enterprises with foreign investments, as well as Russian natural persons or legal 
entities constantly or temporarily residing or located in foreign countries shall be added to the income of the state in the form of consular fees. (See Reference paper 5). 
52. No special consular fees connected with export or import of goods or services have been 
instituted. Consular Fees shall be set and provided for, when necessary, by Ministry of Foreign 
Affairs of Russia after reaching corresponding agreement with Ministry of Finance of Russia. Heads of consular offices shall have the power to decrease the consular fees or not to collect them at all from individual persons in view of their applications, if the reasons specified by them are considered to be valid.  
Other fees  
53. As for port fees those fees used in commercial seaports of the Russian Federation were 
approved by Ministry of Transport of the Russian Federation on 21 July 1995. The regulated port-charges include: tonnage, beaconnage, canal dues, wharfage, anchor dues, ecological dues, 
pilotage dues, navigation dues. Port-charges should be collected in commercial seaports of the 
Russian Federation, irrespective of their form of organization, legal status and pattern of ownership, from Russian and foreign vessels and floating facilities ( see Reference paper 6) . 
Import surcharge 
54. Article 15 of the Federal Law “On measures to Protect the Economic Interests of the 
Russian Federation with Respect to Foreign Trade in Goods” of 14 April 1998 № 63-FZ 
provided for legal framework to safeguard country’s balance of payment. This article was in full compliance with the provisions of Article XII of GATT 1994. In accordance with this legislature due to the particular balance of payment difficulties the Resolution of the 
Government of 17 July 1998 № 791 had introduced a special import surcharge at a rate of 3 per 
cent ad valorem  applied to all tariff items. The Resolution of the Government of 27 February 
1999 had eliminated the import surcharge on 1 March 1999. 
                                                                                                                                                                    
 
 WT/ACC/SPEC/RUS/20 
Page 18  
 
 Application of Internal Taxes to Imports 
Excise Taxes 55. Excise taxes on certain products had differentiated between imported and domestically-
produced goods until January 1997. The Federal Law “On Excise Tax” of 10 January 1997 № 
12-FZ unified excise tax rates for imported and domestic products. In pursuance of Chapter 22 of the Tax Code (Federal Law No 117-FZ of 5 August 2000) excise tax rates for imports and 
those for domestic products were identical and brought into conformity with Article III of 
GATT 1994. The products subject to excise taxes and respective tax rates per 2001 were enumerated in table below. 
Excise taxes
 
 
Types of excisable goods Tax rate   
(in per cent or rubles and kopeks per one unit of 
measurement) 
Ethyl raw alcohol made of all types of raw materi als 8 rubles per 1 litre of absolute ethyl alcohol 
Ethyl alcohol made of all types of raw materials 
(except for alcohol raw alcohol) 12 rubles 60 kopeks per 1 litre of absolute ethyl 
Alcohol products of volume 
Fraction of ethyl alcohol over 25 per cent  (except for wines) and alcohol containing products 88 rubles 20 kopeks per one litre of absolute ethyl 
alcohol contained in excisable goods  
Alcohol products of volume 
Fraction of ethyl alcohol from 9 to 25 per cent 
inclusive (except for wines) 65 rubles 10 kopeks per one litre of absolute ethyl 
alcohol contained in excisable goods 
Alcohol products of volume 
Fraction of ethyl alcohol up to 9 per cent inclusive(except for wines) 45 rubles 15 kopeks per 1 litre of absolute ethyl 
alcohol contained in excisable goods 
Wines (except for natural wines): special vine, 
original (fortified), fruit (fortified), vermouth 36 rubles 75 kopeks per 1 litre of absolute ethyl 
alcohol contained in excisable goods 
Champagne and sparkling wines 9 rubles 45 kopeks per 1 litre 
Natural wines  (except for champagne and sparkling wines) 3 rubles 15 kopeks per 1 litre 
Beer with normative (standardized) volume of 
fraction of ethyl alcohol up to 8.6 per cent inclusive 1 ruble per 1 litre 
Beer with normative (standardized) volume of 
fraction of ethyl alcohol over  8.6 per cent 3 rubles 30 kopeks per 1 litre 
Pipe tobacco 405 rubles per one kg 
Smoking tobacco, except for tobacco utilized as raw 
material to produce tobacco articles 166 rubles per one kg 
Cigars 10 rubles per one piece 
Cigarillos, cigarettes with filter longer than 85 mm 75 rubles per 1,000 pieces 
Cigarettes with filter, except for cigarettes longer than 
85 mm and cigarettes of the 1, 2, 3, and 4 classes as per GOST 55 rubles per 1,000 pieces 
Cigarettes with filter of 1, 2, 3  and 4 classes as per 
GOST 35 rubles per 1,000 pieces 
Nonfilter cigarettes, mouthpiece ciga rettes 10 rubles per 1,000 pieces 
Jewellery 5 per cent  WT/ACC/SPEC/RUS/20 
 Page 19 
 
 
 Types of excisable goods Tax rate   
(in per cent or rubles and kopeks per one unit of 
measurement) 
Petroleum and stable gas condensate 66 rubles per 1 ton 
Cars with engine power up to 67.5 kW  (90 hp) inclusive 0 rubles per 0.75 kWt ( 1 hp) 
Cars with engine power up over 67.5 kW  (90 hp) and 
up to 112.5 kW  (150 hp) inclusive 10 roubles per 0.75 kWt ( 1 hp) 
Cars with engine power over 112.5 kW  (150 hp), 
motorcycles with engine power over 112.5 kW (150 hp) 100 rubles per 0.75 kWt ( 1 hp) 
Motor gazoline with octane value up to "80" inclusive 1.350 rubles per 1 ton 
Motor gazoline with other octane values 1.850 rubles per 1 ton 
Diesel fuel 550 rubles per 1 ton 
Oil for diesel and (or) carburettor (injector) engines 1.500 rubles per 1 ton 
Natural gas sold on the territory of the Russian 
Federation 15 per cent 
Natural gas sold to member states of the  
Commonwealth of Independent States 15 per cent 
Natural gas sold from the territory of the Russian 
Federation (except for the CIS member states) 30 per cent 
 
56. Only two categories of products (natural gas and jewellery) were subject to ad valorem  
rates.  The formula for calculating excise tax ensured that the amount of excise levied on imports and that levied on comparable domestic products was the same. The tax base was 
selling price exclusive VAT and for imported goods the tax base on domestic products out of 
these two categories was the sum of their customs value and the payable customs duty.  
57. If excisable goods are placed under customs treatment of transit, bonded warehouse, re-
export, processing under the customs control, free customs area, free warehouse, destruction and refusal in favour of the State the excise tax is not paid. 
58. Excise taxes are applied differently to Russian trade with CIS countries than to trade 
with non-CIS countries.  With respect to non-CIS countries excise taxes were applied upon import from these countries to Russia.  With regard to CIS countries if the rate of excise tax on the product in Russia is higher than that in the CIS country of origin, the difference is levied 
upon import. The Chapter 22 of the Tax Code is based on the general application on the 
principle of destination and will enter into force as from 1 July 2001. 
Value Added Tax 
59. In accordance with chapter 21 of the Tax Code (Federal Law No 117-FZ of 5 August 
2000 and Federal Law “On Introduction of Part Two of the Tax Code” of 5 August 2000 No 
118-FZ VAT is applied in an uniform manner to all domestic and imported products, and that WT/ACC/SPEC/RUS/20 
Page 20  
 
 would also be that case with CIS countries as from 1 July 2001. Thus, the current legislature on 
VAT provides full national treatment. Goods sale (transfer, performance, rendering) of which 
on the territory of Russian Federation shall not be the subject of value added taxation.  
60. The Value Added Tax is levied at a single rate of 20 per cent with some exemptions (see 
Reference paper 7). Also exempt from VAT were the goods placed under the customs treatment of transit customs warehouse, re-export, duty free shop, processing under customs control, free 
customs zone, free warehouse, destruction and refusal in favour of the State. The tax base for 
the imposition of VAT includes excise taxes, if any, and customs duties for imported goods. 
Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing System 
61. The legal framework for the import licensing system was established by Article 19 of the 
Federal Law "On the State Regulation of Foreign Trade Activities" (No. 157-FZ, dated 
13 October 1995).  Articles 12 and 15 of the Law stipulates that procedures for the importation of 
precious stones, precious metals, and nuclear materials were established by Decrees of the President of the Russian Federation, while procedures for the importation of goods affecting Russia's national security interests and for the fulfilment of its international agreements are laid 
down by the Government of the Russian Federation.  
62. On 31 October 1996, the Russian Government, through its Resolution No. 1299 "On 
rules of conduct of auctions and tenders on sale of quotas in cases of introduction of quantitative restrictions and licensing of exported and imported goods, works and services" (as amended on 
27 January 1997, 2 February, 14 March and 29 December 1998), introduced a uniform 
procedure for the licensing of imports, making the Russian practices in this field consistent with the relevant provisions of the GATT 1994 and the Agreement on Import Licensing Procedures. 
List of goods subject to non-automatic import licensing
 
 
Product group HS Code Reason for licensing GATT Reference 
Weapons, ammunition, 
military equipment, kits 
to produce such 
equipment 9301-9307, 8710 National security Art. XXI (b) (ii) 
Explosive substances 2904 20100, 3601-3604 National security Art. XXI (b) (ii) 
 
Nuclear materials, equipment and 
installations to produce 
such materials 2844, 8401 etc. in accordance with the 
internationally agreed list of Tsanger 
committee and London club of nuclear 
suppliers National security Art. XXI (b) (ii)  WT/ACC/SPEC/RUS/20 
 Page 21 
 
 
 Product group HS Code Reason for licensing GATT Reference 
Pharmaceutical 
products 2904-2909, 2912-2942, 3001-3004, 3006 
30, 3006 60 Protection of human, 
animal or plant life or health Art. XX (b)  
Drugs, substances with 
psycotrophic effects; 
poisons; materials to 
produce such substances Internationally agreed list of U.N. 
Convention of 1961 (as amended by 
Vienna Protocol of 1963) Protection of human, 
animal or plant life 
or health Art. XX (b)  
Products for plant 
protection 3808 (only for plant protection) Protection of human, 
animal or plant life 
or health Art. XX (b)  
Precious metals and 
stones objects made thereof, alloys, 
semifabricates, ores, 
concentrates, wastes  2616, 2843, 300640 (only precious 
metals) 7106-7112, 7113 11, 711319, 711411, 
711419, 711510 100, 7115 19 100, 7118 
(only precious metals) 8544 (only with precious metal conductors), 9003 19 100, 
9021 29100, 911110, (only of precious 
metals) 911310 (only of precious metals, 960810300 960839100 Special role of 
precious metals and stones Art. XX (c) 
Hazardous wastes Internationally agreed list of Basel 
Convention Protection of human, 
animal or plant life 
or health Art. XX (b) 
Ozone destroying 
substances and  products Internationally agreed list of Montreal 
Protocol Protection of human, 
animal or plant life or health Art. XX (b) 
Encryption devices 847 (only cipher equipment) 847330 
(only for cipher equipment), 854380900 
(only for cipher equipment), 854390900 (only for cipher equipment) National security Art. XXI (b) (ii) 
Goods of dual purposes 
which could be used for 
production of chemical, biological, nuclear or 
rocket mass destruction  
weapons  Internationally agreed lists National security Art. XXI (b) (ii) 
Sturgeon species of fish 
and products made there 
of including caviar Internationally agreed lists: 
ex.030199190, ex.030269190, 
ex.030270, ex.030379190, ex.030380, 
ex.030410190, ex.030410910, ex.030420190, ex.030490100,  
ex.030520, ex.030530900, 
ex.030549800, ex.030559900, ex.030569900, ex.051191900, 
ex.160419910,ex.160419980, 
ex.160420900 (all-only sturgeon species of fish), 160430100 Protection of animal 
life or health Art. XX (b)  
Equipment for 
unauthorized receipt of 
information ex.851750, ex.851780900, 
ex.852440100, ex.852510900, 
ex.852520900, ex.8527, ex.900651, ex.900652, ex.852530, ex.852540, 
ex.900653100 (all-special devices only) Protection of public 
moral  
Ethyl alcohol 220710000 
220720000 
220890910 220890990 Protection of human 
health or life Art.XX (c) WT/ACC/SPEC/RUS/20 
Page 22  
 
 Product group HS Code Reason for licensing GATT Reference 
Vodka and some other 
strong alcoholic beverages  220860, 220890110, 220890190, 
ex.220890330, ex.220890380, 220890410, 220890450, ex.220890480, 
220890520, ex.220890570, 
ex.220890690, ex.220890710, ex.220890740, ex.220890780 Protection of human 
life and health. Art.XX ( c ) 
Raw sugar 170111 Administration of 
TRQ Agreement on 
Import Licensing 
Procedures, Articles 1 and 3 
 
List of Goods subject to automatic import licensing  
 
Product group HS Code Reason for licensing 
Carpets originating from EU 
countries 5702 20, 5702 39 900 5702 49 900 Monitoring of trade flows 
White sugar  1701 99 100 Monitoring of trade flows 
Glucose syrup 1702 30 990 Monitoring of trade flows 
Tobacco and tobacco items 2401-2 403 Monitoring of trade flows 
 
63. The grounds for import licensing were justified by provisions of articles XX and XXI of 
GATT 1994 and the Agreement on Import Licensing Procedures. In accordance with the said Federal Law licenses are prescribed for the purpose of fulfilling international agreements, 
ensuring state security, the protection of human, animal and plant health and protection of the 
environment, maintenance of public morals and to regulate the trade in precious metals. The licences are issued by the Ministry for Economic Development and Trade and for weapons and ammunitions – by the Ministry of Defence. The licensing regime applies equally to imports from all countries, including imports from CIS. 
64. The purpose for licensing regime was to monitor and to control import of goods which 
for various reasons were classified as sensitive for Russia and international community. Russia has no intention to limit the quantity and value of imports, except as provided for in international conventions such as the Montreal Protocol or Basel Convention. The import 
licenses for white sugar, tobacco, glucose syrup and carpets had been temporary surveillance 
licences, issued to gather trade data. Those licenses are granted automatically. As for import licensing on strong alcoholic beverages the applicant should have an activity licence. 
65. The last Resolution of the Government which enforced import or export licensing had 
been dated as of December 1998 and after that the decisions on goods subject to import or 
export licence regime had been amended on several occasions over the past tree years with a  WT/ACC/SPEC/RUS/20 
 Page 23 
 
 
 view to minimizing their list. The most recent decision adopted on 10 of May 2000 had removed 
import licenses for colour TV sets. 
66. Licence applications were submitted to no more than two administrative bodies. The 
amount and type of information to be submitted was stipulated in the Resolution of the Government № 1299 of 31 October 1996: the application itself, copy of import or export 
contract, copy of the charter of the applicant, copy of the certificate for the state registration 
approval of the federal agency responsible for the specific sensitive goods (for non-automatic 
licence only) and activity licence (for strong alcoholic beverages only). The validity of licence was as a rule no more than 12 month but could be extended upon request of the licence holder. An administrative fee of 3,000 rubles was charged for each import or export licence. Applications could only be rejected if any of the above-mentioned documents would not be 
available, or the information submitted by the applicant was false or the importer or exporter 
did not fulfil the conditions stipulated in international conventions for specific goods. A licence was required to be issued within 25 days after the complete set of documents had been submitted (see also WT/ACC/RUS/10 for further details).  
67. In seeking to fully meet the provisions of WTO Agreement on Import Licensing 
Procedures Russia would simplify the licensing requirements and the new Draft Federal Law “On import and export licensing” would be approved by the Government the summer of 2001. The prohibitions on the importation of ethyl alcohol had been enforced by the Federal Law № 
61-FZ “On Temporary Ban on Ethyl Alcohol Imports” of 31 March 1999 and was valid until 31 
December 2001. This measure was necessary for the enforcement of governmental measures to restrict the quantities of like domestic product for marketing (Article XI: 2 (c) (i) of GATT 1994). There were no any other bans or quantitative restrictions on imports at present.  
68. The Article 13 of the Federal law “On State Regulation of Production and Turnover of 
Ethyl Alcohol, Alcoholic and Alcohol-Containing Products”  of  22 November 1995 ( № 173-FZ 
(as further amended) restricted imports of distilled spirits to no more than 10 per cent of alcohol sales in Russia. Within this quota, not less than 60 per cent of imports must contain 15 per cent of alcohol or less. The provisions of that Article had never been implemented. 
Customs Valuation  
69. The basic provisions relating to customs valuation practices in Russia were contained in 
the Law of the Russian Federation No. 5003-1 of 21 May 1993 “On Customs Tariff” and the Resolution of the Government of the Russian Federation No. 856 of 5 November 1992 “On the WT/ACC/SPEC/RUS/20 
Page 24  
 
 procedure of customs valuation of products imported into the territory of the Russian 
Federation”. The rules for determining customs value were based on the provisions of the 
Agreement on Implementation of Article VII of the GATT 1994. All six methods of customs 
valuation applied in Russia were based on the provisions of Articles 1, 2, 3, 5, 6, 7 and Article 8 of the Agreement on Implementation of Article VII of GATT 1994. 
70. Taking into account the provisions of Article 17 of the Agreement on Implementation of 
Article VII of the GATT 1994, the State Customs Committee (SCC) had been implementing a 
special technique of customs control to prevent gross under-invoicing of customs value such as the use of false documents stating a clearly understated contractual price in the performance of customs formalities. This technique was based on defining the decision making authority of the customs bodies to check the truth and accuracy of the stated value of products.  The relevant 
customs bodies were vested with certain functions to control customs value and those situations 
in which such functions should be performed were specified, thus defining the operational procedure of the customs bodies at the various levels (custom-house, regional customs authority, SCC staff). This technique was not meant to replace the applicable Russian legislation  on 
customs valuation in respect of use of the transaction value as a main method of customs 
valuation.  The technique also might enable the customs authorities more effectively corresponded to provisions of Article 13 of the Agreement on Implementation of Article VII of the GATT 1994 as it simplified the procedures and criteria used to decide whether the stated 
transaction value could have been understated. 
71. Actions of SCC could be appealed in accordance with the procedure established by the 
Customs Code of the Russian Federation.  Article 407 required the initial appeal to be filed with the higher customs administration of the Russian Federation, while Article 416 stipulated that should this appeal be turned down, the importer may further appeal to court. 
Rules of Origin 
72. Russia was following closely the work of the WCO and the WTO regarding the 
harmonisation for non-preferential rules of origin.  In accordance with the provisions of the Federal Law “On Customs Tariff”, the principles for determining the country of origin of goods 
were based on international practices.  The procedures for determining the country of origin of 
goods were established pursuant to the said Law.  The goods originated from a country if they were wholly produced in that country or sufficiently processed in accordance with criteria set forth in the said Law.  The country of origin of goods might also be understood to mean a group  WT/ACC/SPEC/RUS/20 
 Page 25 
 
 
 of countries, customs unions, a region or a part of a country, if this was necessary to identify 
them with a view to determining the origin of goods.  
73. In order to verify the origin of goods from a country, the Russian customs agency might 
request the presentation of a certificate of origin.  This applied, in particular: 
- with respect to goods originating from countries which benefit from the National 
GSP Scheme ; 
- with respect to goods the import of which from a given country was regulated by 
quantitative restrictions (quotas) or by other methods for the regulation of foreign economic activities; 
- if this was envisaged by international agreements, to which Russia was a party, as 
well as by Russian legislation on environmental protection, public health, protection 
for the rights of Russian consumers, public order, state security and other vital 
interests of Russia; and 
- in cases where data about the origin of the goods were absent in the documents 
submitted for customs clearance or the Russian customs agency had reason to 
believe that the declared data about the origin of the goods were not trustworthy. 
74. The certificate of origin of goods should unequivocally certify that such goods originated 
from the specified country, and should contain: 
- written statement by the consignor that goods met the appropriate criteria of origin; 
- written confirmation by the duly authorised agency of the exporting country, which 
had issued such certificate, that the data indicated therein were true. 
75. The certificate of origin of goods should be submitted alongside the customs declaration 
and other documents presented for customs clearance.  Whether doubts existed about the validity of a certificate or the accuracy of the data indicated therein, including the data about 
the country of origin of goods, the Russian customs agency might approach the organisations 
that had issued the certificate or other authorities of the country indicated as the country of origin of goods with a request for supplementary or clarifying data.  Goods would not be regarded as originating from a given country until a duly executed certificate of origin or 
requested data were submitted. 
76. The Russian customs authorities might refuse to clear goods across the Russian customs 
border only if it had sufficient grounds to believe that such goods originate from a country from WT/ACC/SPEC/RUS/20 
Page 26  
 
 which goods could not be cleared under international agreements to which Russia was a party 
and/or Russian legislation.  Failure to submit a duly executed certificate or data about the origin 
of goods would not constitute the grounds for refusal to clear such goods across the customs 
border.  Goods, the origin of which had not been surely established, shall be cleared after the payment of customs duties at the non-MFN rates of the Russian Customs Tariff.   
77. As for rules of origin within GSP scheme, the criteria set forth in the said Law were 
used although additional criteria of direct shipment and direct purchase and special form of 
certificate were required. As for the rules of origin within free trade agreements the additional criteria of direct purchase were used. 
78. The rules of origin for the goods originating from the CIS countries were laid out in the 
"Decision of the Council of the Governments of the Commonwealth of Independent States on 
the Rules for the Determination of a Country of Goods' Origin” of 24 September  1993". 
Other Customs Formalities  
79. Other customs formalities in use in the Russian Federation were applied in accordance 
with the internationally accepted rules and were based on the Kyoto Convention.   
Preshipment Inspection   
80. The Government did not contract or mandate preshipment inspection. 
Anti-Dumping, Countervailing Duties, and Safeguard Regimes   
81. Federal Law “On Measures to protect the Economic interests of the Russian Federation 
in Foreign Trade in Goods” № 63-FZ had been adopted on 14 April 1998.  The Law established 
the rules of procedures for the application, conduct of investigation and the imposition of safeguards, anti-dumping and countervailing measures as well as other regulations of exports and imports provided for in the relevant rules of GATT 1994, including BoPs measures.  Antidumping, safeguards and countervailing measures may be introduced only following an 
investigation showing evidence of substantially increased, dumped or subsidised imports, 
serious or material injury to domestic industry or threat of such injury and causality between these developments.  The measures could be in place for a limited period of time necessary to eliminate the injury.  The Regulations of the Government of Nos. 183, 184 of 16 February 1999 
and 274 of 11 March 1999 established procedures of investigations as well as the procedures for 
determination of injury.    WT/ACC/SPEC/RUS/20 
 Page 27 
 
 
 82. A new draft Federal Law “On Safeguard, Anti-Dumping and Countervailing Measures” 
had been prepared by the Government in full conformity with the relevant WTO provisions and 
would be submitted to the State Duma shortly.  
EXPORT REGULATIONS 
Customs tariffs  
83. Export duties ranging from 5 to 50 per cent had been imposed for fiscal purposes mainly 
and in very rare cases (raw hides and skins, scrap and waste of non-ferrous metals) to ensure 
essential materials to the domestic industry and to prevent shortages in domestic supply (see Reference paper 8 for further details). Export duties were applied on MFN basis except for the goods exported to the CIS countries-members of Customs Union. All changes in export duties were published officially. Exported goods were exempt from VAT. Russia maintained the same 
customs fees on exportation as on importation. 
Export Restrictions  
84. All previous export bans or export quotas had been abolished from 1996. Article 15 of 
the Federal Law “On State Regulation of Foreign Trade Activity” allowed the imposition of 
export quotas in exceptional cases to ensure essential national interests of Russia and 
implementation of international commitments of the Russian Federation. The only goods subject to quantitative export restrictions in Russia were precious metals and raw diamonds (Article XX (c) GATT 1994) and caviar and sturgeon (Article XX (b) of GATT 1994). There 
were no special registration of export contracts or registration or nomination of exporting 
companies (special exporters). According to the Article 19 of the said Federal Law a ban on exports could be introduced by special Federal Law only. 
85. Quotas on exports of sturgeon caviar and products from sturgeon were in force under 
Government Regulation No. 1077 of 1 August 2000.  Diamonds were also subject to export 
quotas.  The quotas were established on a yearly basis by the Government in accordance with 
Decree of the President “On the Order of Importation on the Territory of the Russian Federation and Exportation from the Territory of the Russian Federation of Natural Diamonds and Brilliants and Certain Questions of Functioning of the Internal Market of Raw Natural 
Diamonds” of No.740 of 20 July 1997.  The quotas for export of other precious stones were 
maintained under Government Resolution “On Approval of the Temporary Regulation on the WT/ACC/SPEC/RUS/20 
Page 28  
 
 Order of the issue of the Values of the State Found of Precious Metals and Precious Stones of 
the Russian Federation” No. 46 of 19 January 1998.   
Export licensing 
86. The procedure for export licensing was the same as for import licensing. Some sensitive 
goods were subject to non-automatic licensing. Limited number of products were subject to automatic licensing for statistical purposes.  
Goods subject of non-automatic export licensing
 
 
Product group HS Code Reason for 
licensing GATT Reference 
Weapons, ammunition, 
military equipment, kits 
to produce such 
equipment 9301-9307, 8710 National security Art. XXI (b) (ii) 
Explosive substances 2904 20100, 3601-3604 National security Art. XXI (b) (ii) 
Nuclear materials, 
equipment and installations to produce 
such materials 2844, 8401 etc. In accordance with 
the internationally agreed list of Tsanger committee and London 
club of nuclear suppliers National security Art. XXI (b) (ii) 
Pharmaceutical 
products 2904-2909, 2912-2942, 3001-
3004, 3006 30, 3006 60 Protection of 
human, animal or plant life or health Art. XX (b)  
Drugs, substances with 
psycotrophic effects; 
poisons; materials to produce such substances Internationally agreed list of U.N. 
Convention of 1961 (as amended 
by Vienna protocol of 1963) Protection of 
human, animal or 
plant life or health Art. XX (b)  
Products for plant 
protection 3808 (only for plant protection) Protection of 
human, animal or 
plant life or health Art. XX (b)  
Precious metals and 
stones objects made there of, alloys 
semifabricates, ores, 
concentrates wastes  2616, 2843, 300640 (only precious 
metals) 7106-7112, 7113 11, 711319, 
711411, 711419, 711510 100, 
7115 19 100, 7118 (only precious metals) 8544 (only with precious 
metal conductors), 9003 19 100, 
9021 29100, 911110, (only of precious metals) 911310 (only of 
precious metals, 960810300 
960839100 Special role of 
precious metals and stones Art. XX (c) 
Hazardous wastes Internationally agreed list of Basel 
Convention Protection of 
human, animal or 
plant life or health Art. XX (b) 
Ozone destroying 
substances and  products Internationally agreed list of 
Montreal Protocol Protection of 
human, animal or plant life or health Art. XX (b)  WT/ACC/SPEC/RUS/20 
 Page 29 
 
 
 Product group HS Code Reason for 
licensing GATT Reference 
Encryption devices 847 (only cipher equipment) 
847330 (only for cipher 
equipment), 854380900 (only for 
cipher equipment), 854390900 (only for cipher equipment) National security Art. XXI (b) (ii) 
Goods of dual purposes 
which could be used for 
production of chemical, biological, nuclear or 
rocket mass destruction  
weapons  Internationally agreed lists National security Art. XXI (b) (ii) 
Sturgeon species of fish 
and products made there of including caviar Internationally agreed lists: 
ex.030199190, ex.030269190, ex.030270, ex.030379190, 
ex.030380, ex.030410190, 
ex.030410910, ex.030420190, 
ex.030490100,  ex.030520, 
ex.030530900, ex.030549800, ex.030559900, ex.030569900, 
ex.051191900, 
ex.160419910,ex.160419980, ex.160420900 (all-only sturgeon 
species of fish), 160430100 Protection of 
animal life or health Art. XX (b)  
Equipment for 
unauthorized receipt of 
information ex.851750, ex.851780900, 
ex.852440100, ex.852510900, 
ex.852520900, ex.8527, 
ex.900651, ex.900652, ex.852530, 
ex.852540, ex.900653100 (all-special devices only) Protection of public 
moral Art. XX (a) 
Ethyl alcohol 220710000 
220720000 
220890910 
220890990  Art. XX (b) 
Vodka and some other 
strong alcoholic 
beverages  220860, 220890110, 220890190, 
ex.220890330, ex.220890380, 
220890410, 220890450, 
ex.220890480, 220890520, ex.220890570, ex.220890690, 
ex.220890710, ex.220890740, 
ex.220890780  Art. XX (b) 
Wild animals and wild 
plants 010119900,  010290900, 
010391900, 010392900, 
010410900, 010420900, 
010600910, 010600990 040700900, 0507, 050800000, 
0604, 070951, 070952000, 
071080600, 071230000, 080221000, 080222000, 0810-
0812, 121220000, 1301, 1302 
(except  130219300), 1401-1404, 9601(all-wild animals and wild 
plants only)  Protection of 
human, animal or 
plant life or health Art. XX (b) WT/ACC/SPEC/RUS/20 
Page 30  
 
 Product group HS Code Reason for 
licensing GATT Reference 
Pharmaceutical raw 
materials 020610100, 020622100, 
020629100, 020630100, 
020641100, 020649100, 
020680100, 020690100, 0507, 051000000, 1211, 121220000, 
1302 130219300, 3001, 3002 (all-
pharmaceutical raw materials only) Protection of 
human, animal or 
plant life or health Art. XX (b) 
Rare kinds of fish 0301, 0306, 0307, 051191900 (all- 
rare kinds of fish alive only) Protection of 
human, animal or 
plant life or health Art. XX (b) 
Semi precious stones  970500000, 710310000, 
710399000, 711620110, 711620190  Protection of 
human, animal or plant life or health Art. XX (b) 
 
Goods subject of automatic export licensing  
 
Product group HS Code Reason for licensing 
Soya beans, rape or colza seeds, 
sunflower seeds  1201, 1205, 1206 Monitoring of trade flows 
Raw hides and skins 4101, 4102, 4103 Monitoring of trade flows 
 
INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
Industrial subsidy policies   
87. The Russian legislation did not provide for subsidies conditioned on exportation or for 
import substitution. The Decree of the President of the Russian Federation No. 135 of February 
5, 1998 “On additional measures for increasing investments for the development of the domestic automobile industry” and Resolution of the Government of the Russian Federation No. 413 of April 23, 1998 “On additional measures to attract investments for the development of the domestic automotive industry” provided for customs and other preferences for investments in 
automotive industry higher than an established ceiling.  Resolution of the Government of the 
Russian Federation No. 716 of 7 July 1998 “On further measures of state support for civil aviation of Russia” provide for customs preferences to aircraft leasing companies which buy domestic aircraft.  As regards internal subsidies, the Russian Federation distributed 
information on the subsidies system in 1998 (please see WT\ACC\RUS\11). Information about 
subsidization policies in 1999 would be distributed shortly among the interested members of the Working Party.  WT/ACC/SPEC/RUS/20 
 Page 31 
 
 
 Technical Barriers to Trade  
88. Products imported into the territory of the Russian Federation should meet technical, 
pharmacological, sanitary, veterinary, phytosanitary and ecological standards and requirements 
determined by the Russian Federation.  Imports into the territory of the Russian Federation of the product was restricted if: 
- they did not correspond to the standards and requirements determined by the Russian 
Federation; 
- they did not have a certificate, marking or a corresponding sign in cases envisaged by 
federal laws and other legal acts of the Russian Federation (with no affect during customs procedures but retail sale); 
- they were banned for use as harmful consumer goods; 
- they had defects harmful to consumers. 
89. The Federal authority which was responsible for these matters is the State Committee of 
the Russian Federation for Standardisation, Metrology and Certification (herein “Gosstandart of Russia”). About 35 per cent of ISO and IEC international standards were currently applied by 
the Russian Federation.  Gosstandart of Russia as a national body of the Russian Federation on 
certification was entitled to sign agreements on mutual recognition of certification results (including results of the tests and production control based on standard ISO9000s) with all countries.  To accredit testing laboratories (centres) and to issue them permits for specific types 
of work was also a task for Gosstandart of Russia together with other federal executive bodies 
witch were entitled by virtue of legislative acts of the Russian Federation to organize and carry out mandatory certification.  Rules, procedures and criteria for the accreditation of testing laboratories as well as their requirements were listed in GOST R 51000.3-96 “General requirements to accreditation of testing laboratories”, harmonized with European standards EN 
45001, 45011.  The accreditation of testing laboratories was also valid for another body 
accredited in the GOST R System providing that area of the body in question confirmed with that of the accredited testing laboratory. 
90. The Russian authorities determined the nomenclature of products and services which 
were liable to mandatory certification in the Russian Federation.  The lists of products liable to 
mandatory certification were approved by the Government Resolution No. 1013 of 13 August 1997 (as amended on 24 May 2000) “On the approval of the list of goods that shall be subject to mandatory certification and the list of works and services that shall be subject to mandatory certification ”.  In order to ensure safety of products, the federal body of standardization, WT/ACC/SPEC/RUS/20 
Page 32  
 
 metrology and certification, the federal body of the sanitary and epidemiological inspection and 
other governmental bodies of executive power that supervise quality and safety of products within 
the limits of their jurisdiction determined mandatory requirements for safety of products and 
controlled observance of these requirements. The organization and implementation of mandatory certification were entrusted to Gosstandart of Russia.  In cases envisaged by legislative acts of the Russian Federation with respect to certain types of products, they could be entrusted to other 
governmental bodies of the Russian Federation.  The forms of mandatory certification of products 
were determined by Gosstandart of Russia or other authorized governmental bodies of the Russian Federation with due regard to established international and foreign practice.  The entities involved in mandatory certification were the State Committee for Standards, other governmental bodies of administration of the Russian Federation authorized to carry out jobs dealing with 
mandatory certifications, certification bodies, test laboratories (centres), producers (providers, 
executors). Draft technical norms, standards and procedures of conformity assessment were published in the monthly journal of Gosstandart of Russia entitled “Standards and Quality”.  
91. The enquiry point envisaged by Article 10.1 and 10.3 of the WTO Agreement on 
Technical Barriers to Trade was operative and located within Gosstandart of Russia at the 
following address: 
Russian Federation 
4, Granatniy Pereulok,  103001, Moscow e-mail : ENPOINT@VNIIKI.RU
 
Tel/Fax: (007 095) 230 25 98 
92. The Russian TBT/SPS Enquiry Point had started publishing a specialised Bulletin 
(“Vestnik”). The interministerial network on TBT/SPS issues was also available on the website at www.GOSTR.RU
. Gosstandart of Russia was the  agency dealing with the consultations foreseen 
in Article 14 of the Agreement.  For dispute settlement in the area of certification of products and standards, an appeal commission of Gosstandart was operative.  To ensure the 
conformity of national and sub-national authorities preparing new technical regulations or 
substantial amendments to existing ones, Gosstandart of Russia was concluding agreements with central government bodies which provided that the bodies in question had to inform domestic enterprises and organisations, as well as citizens of the Russian Federation and foreign users of 
information, about new technical rules or significant amendments to current rules.  WT/ACC/SPEC/RUS/20 
 Page 33 
 
 
 Sanitary and phytosanitary measures 
93. The agency responsible for hygienic certification of imported food, certain types of 
industrial products and household items was the Ministry of Health of the Russian Federation 
(Department of Sanitary and Epidemic Surveillance or “Gossanepidnadzor”).  Products imported into Russia must meet the safety requirements in effect in the Russian Federation.  In 1996-1997, this Regulation was substantially revised, taking into account, in particular, the provisions of 
relevant international organisations, i.e.  FAO/WHO Codex Alimentarius Commission.  This 
revised version of this normative document had been prepared and was now under consideration by the Russian Gossanepidnadzor.  The hygienic requirements for the safety of different products were also presented in a set of sanitary rules and hygienic standards, namely “Hygienic Requirements for Video Display Units”, “Personal Computers and Organization of Work”, 
“Hygienic Requirements for Hand Tools and Organizations of Work”, “Sanitary Regulations for 
Distribution of Fishery Products”, “Sanitary Norms of Permissible Levels for Physical Factors During Use of Domestic Articles”.  Order of Gossanepidnadzor of 20 July 1998  “On hygienic assessment of production, delivery, realization of products and goods”  which established rules of 
issuing of hygiene certificates for products had been prepared on the basis of the following laws of 
the Russian Federation: Law “On Sanitary And Epidemiological Well Being of the Population” of 19 April 1991; Law 2-FZ “On the Protection of Consumer’s Rights” of 9 January 1996 (as amended on 17 December 1999); Fundamentals of the Legislation of the Russian Federation 
No. 5487-1 “On Health Protection” of 22 July 1993 (as amended on 2 March 1 998, 20 December 
1999, 02 December 2000); Law No. 5151-1 “On Certification Of Products And Services” of 10 
June 1993 (as amended on 27 December 1995, 2 March 1998, 31 July 1998); and, Law No. 2060-1 “On Protection of the Natural Environment” of 19 December 1991 (as amended on 21 February 1992, 2 June 1993, 27 December 2000).  The hygiene certificate was issued by the Federal and 
regional centres of Gossanepidnadzor for a specific product for a period of one to five years and is 
valid throughout the territory of the Russian Federation.  The labelling requirements for food products were subject to Law 2-FZ “On the Protection of Consumer’s Rights” of 9 January 1996  
(as amended on 17 December 1999), and Government Resolution No. 1575 “On The Procedure 
For Ensuring That Products Imported Into the Russian Federation Contain Labels in the Russian 
Language” of 27 December 1996 (as amended on 14 July 1997). 
94. The agency responsible for the veterinary control of importation of live animals into the 
territory of Russia and of imported products of animal origin is the Ministry of Agriculture (Department of Veterinary Control).  The importation and sale of live animals, raw materials and 
products of animal origin in the territory of the Russian Federation was done on the basis of an WT/ACC/SPEC/RUS/20 
Page 34  
 
 import permit delivered by the Department of Veterinary Control of the Ministry of Agriculture.  
In addition, a hygiene certificate was required for importation and sale of edible products of 
animal origin.  This was established by the Law of the Russian Federation “On Veterinary” No. 
4979-1 of 14 May 1993.  Products of animal origin and live animals must be accompanied by a veterinary certificate of the exporting country, cleared by the Department of Veterinary Control.  The certificate included a list of diseases, micro-organisms and poisonous substances which must 
not be contained in food products or animals.  The elaboration and approval of such certificates, 
as a rule, was the subject of bilateral negotiations between the veterinary services of Russia and the exporting country.  Recommendations of the International Office of Epizootic and the “Medical and Biological Requirements for Quality of Raw Materials and Food in Russia” were taken into account.  In some cases, upon agreement with the exporting country, the Department of 
Veterinary Control sent its experts to the country in question to perform checks on the existing 
veterinary, sanitary and hygienic conditions for production of edible products of animal origin as well as the inspection and storage systems in use.  Products imported on the basis of an agreed certificate and permit of the Department of Veterinary Control were subject to inspection by the 
veterinary service at the border.  In case of any discrepancies with standards, thorough 
laboratory analyses were performed.  After the goods have crossed the border, the veterinary certificate was replaced with a veterinary permit valid in the Russian Federation.  In case of non-compliance with veterinary requirements, the cargo might either be disinfected or denied 
entry into Russia (see Reference papers 9, 10, 11, 13 and 14 for further details on mandatory 
hygienic, veterinary and phytosanitary control, mandatory certification and certification fees). 
Trade-Related Investment Measures (TRIMs)  
95. The Federal law N160FZ “On Foreign Investment in the Russian Federation” adopted 
on 9 July 1999 did not provide for measures inconsistent with provisions of Art. III or XI of the 
GATT 1994 and measures which correspond to the illustrative list of TRIMs according to para 
2 of Art.2 of the TRIMs. The Law provided information on all measures affecting foreign investors should be published. The Law provided the Government and local powers the authority to grant foreign investors more favourable regime taking into consideration general 
economic interest of Russia. As the Law established criteria for such more favourable regime 
the sub-federal authorities could establish such criteria by themselves. Thus sub-federal powers were empowered to apply any measures provided that those measures were within the competence of sub-federal powers and concerned the sub federal budget. The Law “On production sharing” provided for some obligations of foreign investors which took part in 
production sharing schemes in Russia to place some proportion of their orders with Russian or  WT/ACC/SPEC/RUS/20 
 Page 35 
 
 
 foreign companies registered for purposes of collection of tax in Russia although use of locally 
produced goods is not required. 
State-trading enterprises 
96. Information had been already provided to the Working Party notifying pursuant to  
Article XVII of the GATT 1994 (WT/ACC/RUS/18), five State-trading enterprises existing in the Russian Federation. In the view of the Russian Government there were no other enterprises 
in Russia, either state-owned or privately-owned, which had been granted such exclusive or 
special rights, or privileges including statutory or constitutional powers in the exercise of which their purchases or sales might influence the level or direction of imports or exports. The list of these was  limited to the energy (three) and raw natural diamond (two) spheres. 
97. These enterprises, which had been granted exclusive or special rights or privileges in the 
exercise of which they influenced, through their purchase or sales, the level or direction of 
imports or exports, made their purchases and sales on the basis of commercial considerations. 
98. Regarding trade in agricultural products,  by virtue of Government Resolution No. 1224 
of 26 September 1997 the Federal Agency for Food Market Regulation replaced the Federal 
Food Corporation with a modified institutional and legal framework.  The new agency’s mission 
included, inter alia,  the monitoring of agricultural product markets, promotion of competition, 
assisting in commodity purchases in the agricultural market and acting as a state customer (procuring organisation) to maintain the current food reserves of the Russian Government.  
Purchases of products and commodity interventions were to be performed not by the Agency 
but exclusively by business entities selected through public tenders.  Thus the Agency did not impact on export or import trade. 
Free zones, special economic zones 
99. Although Russian legislation provided for the establishment of free-trade zones, such 
zones did not become significant for the Russian Federation’s trade regime.  Actually only one 
Special Economic Zone (SEZ) was under operation in Russia which had been created taking into account specific geographical location of the Kaliningrad region. Administration of the Kaliningrad region is governing authority of this SEZ. Under the Federal Law No. 13-FZ of 22 
January “On The Special Economic Zone in the Kaliningrad Region” (as amended on 27 
December 2000) all goods (excluding goods covered by quantitative restrictions), imported into the Kaliningrad Region were exempted from customs duties and payments (excluding charges).  WT/ACC/SPEC/RUS/20 
Page 36  
 
 However, if such goods were later exported to other regions of the Russian Federation, customs 
import duties were payable in full, with the exception of goods processed or deemed to have 
been processed in the Kaliningrad Region. There was legislation which provided for the 
establishment of SEZ in the Magadan region and in Nakhodka, but those zones are not yet active. 
Transit 
100. At present, transit of commodities through the territory of the Russian Federation was 
free from the levy of fees, customs duties, VAT and excise tax. The Russian Federation granted freedom of transit through its territory as prescribed by Article V of the GATT 1994 as well as on the basis of international treaties it was party to. The only charges levied were those for transportation commensurate with administrative expenses or with the cost of services 
rendered. 
Agricultural policies 
101. The government followed the agricultural policy trying to solve problems faced by the 
Russian agricultural sector taking into account trends in the world agricultural production and 
trade, agricultural policies of WTO Members, especially those of Russia’s main trading 
partners and requirements of the WTO Agreement on Agriculture. 
102. The priority tasks of the policy were as follows: 
- Structural transformation and improvement of financial position of the sector; 
- Undertaking a comprehensive land reform based on the new legislation being prepared; 
- Achieving a substantial increase in production and productivity in agriculture; 
- Ensuring food security; 
- Developing fair competition on domestic agricultural markets, both among national 
agricultural producers and traders, and between domestically-produced and imported 
products; 
- Providing social support to rural population, especially to rural poor, in order to reverse 
unfavourable demographic trends in rural areas; and 
- Introduction of effective food market regulation to avoid excessive price fluctuation. 
103. The implementation of the agricultural policy would require a number of support 
measures, including those falling into the category of AMS under the Agreement on Agriculture, as described in WT/ACC/SPEC/RUS/16.  Debt relief and debt restructuring would involve writing  WT/ACC/SPEC/RUS/20 
 Page 37 
 
 
 off the bad debts and deferral of other debts of agricultural companies and organizations to the 
federal, sub-federal and local budgets, as well as to state non-budgetary funds amounting 
altogether to 170 billion roubles. 
104. Debt relief and debt restructuring measures would consist of: 
- Relief of debts; 
- Deferral of debts; 
- Restructuring of debts owned by agricultural producers to their suppliers. 
105. Development of credit system in agriculture . In the Government intended to compensate 
¼ of the interest rate for short-term loans. Agricultural credit system would provide for long-term loans to cover needs in fixed assets such agricultural equipment and machinery. The government intended to provide these loans through a leasing fund.   
106. Regulation of agricultural markets. For a few agricultural products, the government 
intended to use ad hoc  procurement and commodity interventions on a modest scale in order to 
support revenues of producers in cases of sharp price fluctuations. 
107. Crop insurance scheme . In 2001 the Government’s intended to pay 50 per cent of 
insurance payments. 
108. Input subsidies . These included subsidies for fuel, lubricants, fertilizers and etc.  
109. Investment subsidies . The need for investment subsidies, mainly for work out fixed 
assets of agricultural enterprises, was estimated in 1999 at 177 billion roubles. Additional 
expenditures would also be provided for implementation of “Target” Federal Programs – 35.9 
billion roubles. 
110. Production subsidies . The government intended to use such subsidies as an instrument 
to stimulate increased production of the main agricultural products to ensure food security and support rural population. The subsidies were intended to be calculated as per amount of 
commodity produced. 
111. Export subsidies . Taking into account such factors as the geography of agricultural 
production in Russia, its vast territory, actual state of development of transportation system and infrastructures supporting exports of agricultural products, use of export subsidies by some of 
Russia’s major partners and also the prevailing conditions for competition on world WT/ACC/SPEC/RUS/20 
Page 38  
 
 agricultural markets, the Government came to a conclusion that export subsidies consistent 
with the Agreement on Agriculture could be used. Therefore, Russia intended to reserve its 
right to use export subsidies subject to: (a) agreed reductions with WTO members over a fixed 
period of time;  and (b) possible results of the on-going new WTO negotiations on agriculture on export subsidies. 
112. The information about various aspects of Russia’s agricultural policies was presented 
inter alia  in documents WT/ACC/RUS/SPEC/17 and add 1. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME   
General 
113. The national system of protection of intellectual property rights corresponded to the 
basic international standards in this field including, inter alia, the provisions of the TRIPS 
Agreement.  The general thrust of the Russian Federation’s policy on intellectual property was 
determined by the Constitution of the Russian Federation (Article 44-1) which provided erga 
omnes  the guaranteed freedom of literary, artistic, scientific, technical and other types of 
creative activity, and teaching; and stipulated that the intellectual property shall be protected 
by law.  The whole system of the Russian legislation in force contributed to the realisation of 
this constitutional right.  A vital element of the said system laid in a number of international agreements to which the Russian Federation is a party. 
114. The Russian Federation extended national treatment to the legal entities and individuals 
of those countries which were parties to agreements mandating such treatment (most notably: 
the Paris Convention for the Protection of Industrial Property, the Universal Copyright Convention, and the Bern Convention for the Protection of Literary and Artistic Works) both directly pursuant to such covenants (Clause 4 of Article 15 of the Constitution of the Russian Federation provided for the direct application and prevalence of international agreements) and 
in accordance with relevant provisions of legislative acts of the Russian Federation (in 
particular, Articles 36 and 37 of the Patent Law of the Russian Federation No. 3517-1 FZ of 23 September 1992, Articles 47 and 48 of the Russian Federation Law “On Trademarks, Service Marks, and Appellations of Origin” No. 3520-FZ of 23 September 1992, Article 3, Article 5:1 
and Article 35:4 of the Russian Federation Law “On Copyrights and Related Rights” No.5351-1 
FZ of 9.July 1993, Article 7 of the Russian Federation Law “On the Legal Protection of Computer Programs and Databases” No.3523-1 of 23 September 1992, Articles 13 and 14 of the  WT/ACC/SPEC/RUS/20 
 Page 39 
 
 
 Russian Federation Law ”On the Legal Protection of Layout Designs of Integrated Circuits” 
No.3526-1 23 September 1992). 
115. The application of most-favoured-nation treatment (with exceptions regarding 
advantages granted by Russia in accordance with certain agreements including agreements with CIS countries) on intellectual property was stipulated in the agreements that the Russian Federation had with Switzerland and the European Union. For more information on TRIPS 
regime in Russia see WT/ACC/RUS/41, WT/ACC/RUS/29 and WT/ACC/RUS/29 Rev.1. 
Copyright and related rights 
116. In general, the provisions of the Russian legislation on copyright (including the ones on 
the protection of computer programs and databases) were in conformity with the provisions of the Bern Convention for the Protection of Literary and Artistic Works (including Article 6 bis) 
and the relevant provisions of the TRIPS Agreement.  At the same time, according to the 
declaration made by the Government of the Russian Federation when joining the Bern Convention, the provisions of the latter were not applied to literary and artistic works which were of public domain when the Convention came into force for the Russian Federation.  In 
accordance with Article 28 of the Russian Federation Law “On Copyright and Related Rights” 
No. 3531-1 FZ of 9 July 1993 works for which the term of copyright expired, as well as works to which copyright protection had never been extended within the Russian Federation were of public domain. New amendments to this Law would bring the provisions relating to retroactive 
protection into conformity with the respective requirements of the Bern Convention and TRIPS 
Agreement.  
Trademarks, including service marks 
117. In general, the provisions of the Russian legislation on the protection of trademarks and 
service marks were in conformity with the provisions of the Paris Convention for the Protection 
of Industrial Property and the relevant provisions of the TRIPS Agreement with the exception 
of the TRIPS provisions on additional protection of well-known marks in respect of non-homogeneous goods.  These provisions would be taken into account when amendments to the Russian Federation Law “On Trademarks, Service Marks and Appellations of Origin” would be 
approved. WT/ACC/SPEC/RUS/20 
Page 40  
 
 Geographical indications, including appellations of origin 
118. Prior to 1992 geographical indications in Russia were protected mostly by considering 
any false geographical indications as a form of unfair competition or a violation of consumer 
rights (this was done by antitrust agencies or courts respectively). 
119. In addition to this since 1992 one highly important category of geographical indications - 
appellations of origin - was accorded special protection through their state registration in 
accordance with the procedure set forth in the Russian Federation Law “On Trademarks, 
Service Marks and Appellations of Origin”. 
120. In general, the provisions in accordance to which geographical indications were 
accorded protection were in conformity with the provisions of the Paris Convention for the Protection of Industrial Property and the relevant provisions of the TRIPS Agreement.  New 
amendments to the Law on Trademarks would be taken into account the provisions of the 
TRIPS Agreement on additional protection of geographical indications for vines and spirits were extended only for the appellations of origin which were registered in accordance with the established procedure. 
Inventions and Industrial designs 
121. In general, the provisions of the Patent Law of the Russian Federation on the protection 
of inventions and industrial designs were in conformity with the Paris Convention and the relevant provisions of the TRIPS Agreement.  The draft law on amendments to the Patent Law 
of the Russian Federation took into account the provisions of the TRIPS Agreement on the use 
of inventions without patent holder’s authorisation (“compulsory licensing”).   
Plant variety and animal breed protection (selection attainments) 
122. Plant varieties and animal breeds were protected in accordance with the Russian 
Federation Law “On Selection Attainments” No. 5605-1 FZ of 6 August 1993.  The provisions of 
this Law were in conformity with the TRIPS Agreement and the UPOV Convention.  The 
Russian Federation became a member of the UPOV Convention in 1998. 
Layout designs of integrated circuits 
123. Layout designs of integrated circuits were protected in accordance with the Russian 
Federation Law “On Legal Protection of Layout Designs of Integrated Circuits”.  In general, the  WT/ACC/SPEC/RUS/20 
 Page 41 
 
 
 provisions of this Law were in conformity with the provisions of the Treaty on Intellectual 
Property in Respect of Integrated Circuits (Washington Treaty), notwithstanding the fact that 
Russia was not a party to this Treaty.  Additionally (in respect of the Washington Treaty) the 
relevant requirements of the TRIPS Agreement had been taken into account in a draft law on amendments to the Law on layout designs which was to be submitted to the legislative authorities. 
Requirements on undisclosed information, including trade secrets and test data 
124. Protection of undisclosed information, as in Section 7 of the TRIPS Agreement, was 
ensured in the Russian legislation by virtue of Article 139 of the Civil Code.  In particular, Article 139 stipulated the liability of officials who illegally obtained information which constituted official or commercial secrets.  The obtaining, use, or disclosure of scientific, 
technical, production, or commercial information, including commercial secrets, without the 
owner’s consent were not permitted by virtue of Article 10 of the Federal Law No. 948-1 of 23 March 1991“On Competition and Restriction of Monopoly Activity on Commodity Markets”. 
POLICIES AFFECTING TRADE IN SERVICES 
125. Russian market for services began to develop only in the first part of the 1990s, 
following the domestic process of market reforms and privatization, as well as liberalization of the whole system of the Russian Federation’s economic relations.  The development of services market had led to a substantial increase of its share in national GNP, which reached about 54 
per cent in 1999 (28 per cent in 1991).  Although Russian’s share in world trade in services was 
not yet substantial, the contribution of services to the country’s total trade is not negligible (in 1999 Russia’s share of trade in services in the world’s trade in services comprised over 1 per cent). The balance of foreign trade in services, however, was traditionally negative for the Russian Federation, with exports amounting to US$9,040 billion and imports amounting to 
US$12,829 billion in 1999 (data based on Balance of Payments).  
126. The reform of the Russian economy during the last decade created certain services 
sectors in Russia as well as contributed to the development of existing ones.  At the same time services providers in some sectors operated with insufficient regulatory and institutional 
frameworks and suffered from an unstable market structure.  As “infant industries”, those 
services sectors were liable to positive and negative economic and social variations that could have a serious impact on the economy as a whole.  Should negative variations prevail, the Russian Federation needed to retain recourse to certain temporary measures aimed at the WT/ACC/SPEC/RUS/20 
Page 42  
 
 maintenance of a normal competitive environment, balance and integrity of markets, social 
stability and employment.  The implication of these measures was limited in time until the 
factors triggering their use would be removed.  If multilateral disciplines addressing the 
relevant issues were agreed, the Russian Federation was willing to make corresponding adjustments to the mentioned measures and Russian specific commitments. 
127. The opening of Russia’s services markets had led to substantial increase in the activities 
of foreign services suppliers. The share of foreign suppliers in international road cargo 
transportation services increased between the period of 1991-92 and 1998-99 from 25 to over 75 percent. One auditing company with foreign participation controlled over 38 percent of domestic market of auditing services, and according to available estimations companies with foreign participation control over 60 percent of the market. The market of franchising services 
was almost fully controlled by foreign suppliers. The volume of tourist services provided in 
Russia for foreign tourists amounted in 1998 to US$4.9 billion, and Russian tourists travelling abroad consumed services for US$8 billion. On the whole, foreign competition contributed to the reviving of the activity of Russian suppliers of services and stimulates the development of  
“new” services sectors.  However in some key services sectors (transport, (especially maritime), 
insurance, communication) Russian suppliers suffered as a result of foreign competition.  
128. The economic developments in services were supported by the legislative process. Many 
laws and regulations, necessary to establish a legal framework for provision of services in 
general (such as Civil Code or Law on foreign investments) or in specific sectors (such as Law 
on banks and banking activities),  were adopted. However, the dynamism of services markets was still not adequately reflected by the regulatory system. The Russian banking crisis in August 1998 at least in part, resulted from inadequate approaches to and lack of effective prudential arrangements in established banking activities, following the heavy dependence of 
the internal financial system on the situation in short-term foreign capital markets. In addition, 
development of regulatory systems in some services sectors was linked to the adoption of still politically sensitive basic laws on the status of land for the purpose of ownership and commercial transactions.  On the other hand, laws relevant for trade in other sectors, such as 
professional services, were adopted or were in the process of development. It could be expected 
that regulatory framework of the Russian Federation governing the services sectors would, for some time, be subject to a process of adaptation and improvement in light of experience and progress made in building national capacity to supply of services on a competitive basis. That does not contradict GATS provisions recognizing the right of Members to regulate, and to  WT/ACC/SPEC/RUS/20 
 Page 43 
 
 
 introduce new regulations on supply of services within their territories in order to meet national 
policy objectives. 
129. According to the existing legal framework, some service activities were subject to 
licensing (see Reference paper 12 for further details on the particularities of licensing of certain types of activity).  
130. Russian authorities were aware of ongoing negotiations within the WTO with a view to 
developing multilateral disciplines on services to avoid trade distortive effects of subsidies and 
addressing the appropriateness of countervailing procedures.  Taking into account the fact that the Russian Federation did not take part in the negotiations as a full-fledged participant and thus was not able to secure adequately its particular interests in this respect, the Russian Federation would like to reserve the right, pending the results of these negotiations, to maintain 
subsidies measures according to the national legislation and practice, and upon the completion 
of the negotiations to adjust its specific commitments on services in an appropriate manner. 
131. The Russian Federation exercised its sovereign rights over subsoil and mineral 
resources, underground resources within the territory of the Russian Federation, including 
subsoil domain and mineral resources contained therein, energy and other resources.  Subsoil 
areas could not be subject to purchase, sale, gift, inheritance, deposit, pledge or any other form of alienation.  In this context, the Russian Federation was developing a market environment in this field with a purpose of creating favourable conditions for enterprise operation, capital and 
technology inflow and encouraging access to the subsoil and natural resources on the basis of 
production sharing and concession agreements.    
132. In respect of Most-Favoured-Nation commitments, the Russian Federation had a limited 
number of bilateral agreements related to debt settlements and technical assistance measures resulting from the agreements on legal assistance; measures which define the responsibility for 
the preservation of suitability of aircraft for carrying out the flights (defined by bilateral 
agreements); measures based on agreements on conditions of activity on the territory of Russia of Severniy Investitsionniy Bank (North Investment Bank) and Tchernomorskiy Bank Torgovliy i Rasvitiya (Tchernomorskiy Bank of Trade and Development) which contained some 
preferential provisions within the specific context provided for by the mentioned agreements.  
There was an understanding of the Russian Federation that WTO provisions should not be construed as preventing Russia to implement the mentioned bilateral agreements for the period of their validity. WT/ACC/SPEC/RUS/20 
Page 44  
 
 133. At the beginning of 2001 the revised draft of the Schedule of Specific Commitments of 
the Russian Federation in Services was submitted to the Secretariat of the WTO. This new 
Schedule was based on the understanding that the Russian Federation reserved the right to 
determine its commitments in respect of the state procurement supplied on non-discriminatory basis depending on the future definition of the "services purchased for governmental purposes" and in accordance with multilateral rules, that may be established in the context of Article XIII 
of the GATS.  
134. For the purpose of protection of interests of investors, depositors, policy-holders, 
protection of national currency of the Russian Federation and also for the purpose of ensuring the stability and integrity of the financial system, the Russian Federation did not exclude possibility of application of measures affecting any transaction involving instruments of the 
internal debt of the Russian Federation and raising credits or loans at international financial 
markets by issuance and placement of bonds and other issue-grade securities outside the territory of the Russian Federation. 
FREE TRADE AND CUSTOMS UNION AGREEMENTS 
135. In accordance with Russia’s bilateral agreements on free trade with CIS countries and 
the Federal Republic of Yugoslavia, the importation of goods (including agricultural products) originating from those countries into the customs territory of the Russian Federation was not subject to customs duties.  Such preferences were granted on the basis of a certificate of origin, 
provided that the exporter was a resident of the exporting country. 
136. A number of agreements were signed between the Russian Federation and the Republic 
of Belarus, the Republic of Kazakstan, the Republic of Tajikistan and the Kyrgyz Republic.  These agreements were aimed at a step-by-step formation of a customs union among the signatories. 
137. The formation of this customs union was in its initial stage.  Trade with these countries 
as currently carried out under the terms and conditions of a free trade regime. 
138. The Government would, from the date of accession, observe the provisions of the WTO, 
including Article XXIV of the GATT 1994 in its trade agreements, and would ensure that the 
provisions of these WTO Agreements for notification, consultation and other requirements 
concerning free trade areas and customs unions of which Russia was a member were met .   WT/ACC/SPEC/RUS/20 
 Page 45 
 
 
 Sectorial agreements 
139. Trade agreements in specific sectors which were concluded with several WTO members, 
falling into the definition of “voluntary export restraint agreements” and covered different 
products such as steel and steel products, certain fertilisers, textiles and sport weapons.  All these agreements were concluded following requirements of Russia’s trading partners. It was not the intention of the Russian Federation to continue these agreements which were askew of 
WTO commitments and that the Russian Federation intended to propose to its other parties 
either to bring them into conformity with the WTO or to terminate these agreements from the date of Russia’s accession to the WTO. 
Transparency 
140. Article 15 of the Constitution provided that: “Laws shall be officially published.  
Unpublished laws shall not be used.  Any normative legal acts concerning human rights, 
freedoms and duties of man and citizen may not be used, if they are not officially published for general knowledge.” 
141. The constitutional principle of obligatory publication of legislative acts was developed in 
Federal Constitutional Law No. 2 of 17 December 1997 “On the Government of the Russian 
Federation” (as amended on 31 December 1997), in the Federal Law “On the procedure of publication and entry into force of Federal Constitutional Laws, Federal Laws, statements of chambers of Federal Assembly” No 5-FZ of 14 July 1994 and in the Decree of the President “On 
the procedure of publication and entry in force of statements of the President of the Russian 
Federation, Government of the Russian Federation and legislative acts of the federal executive bodies” of 23 May 1996 No 763.  In accordance with the aforesaid legislation, only officially 
published federal constitutional laws, federal laws, statements of chambers of Federal Assembly were enforced within the territory of the Russian Federation. The “Parlamentskaya Gazeta” 
(Parliament Gazette), “Rossijskaya Gazeta’ (Russian Gazette) or Sobranie Zakonodatelstva 
Rossijskoj Federatsii” (Complete legislation of the Russian Federation) were the official publications of the acts mentioned above. 
__________ 
 