RESTRICTED
WORLD TRADE WT/ACC/UKR/24/Add.1
21March 1997
ORGANIZATION(97-1173)
Original: English
ACCESSION OFUKRAINE
Additional Questions andReplies
Addendum
TheGovernmental Commission onUkraine 'sAccession totheWTO hasprovided thereplies
reproducedhereundertothequestionssubmittedbydelegationsconcerningdocumentWT/ACC/UKR/24.
_______________
TABLE OFCONTENTS
Section Question Number Page Number
LIST OFSERVICES
General Provisions -Horizontal Part 1-9 2
SPECIFIC COMMITMENTS SECTOR
Professional Services 10-24 7
Professional Services -Taxes 25-26 11
Communication Services 27-38 12
Construction Services 39-40 14
Financial Services -Insurance 41-42 15
Financial Services -Banking 43-56 15
Transport Services 57-63 18WT/ACC/UKR/24/Add.1
Page2
LIST OFSERVICES
General Provisions -Horizontal Part
Question 1
Thelistindocument WT/ACC/UKR/24 ofareas inwhich licenses andpermits arerequired
isuseful. However, thecriteria fortheissue oflicenses stillrequires clarification sothatit
canbedetermined that these donotconstitute market access restrictions. Could such
information beprovided?
Answer:
Generally, thisisaformal procedure. Insome (sensitive) sectors (banking andinsurance
activity), there isaseparate, non-discriminatory procedure forobtaining alicense.
Question 2
Could Ukraine confirm what effect thelicensing ofoperations bytheUkrainian authorities of
itscitizens 'activities might have onconsumption abroad (mode 2)?
Answer:
Ukrainian citizens donothavetoreceive alicense forconsumption ofservices abroad.
Question 3
Isthere anyservice regime inUkraine thatisnotconsistent withGATS Article 2regarding MFN?
Answer:
Seethetableofexemption from theMFN Regime.
Question 4
Do"foreign citizens" receive national treatment intheissuance ofpermits andlicenses? Arethere
other aspects thathave adiscriminatory effect upon foreigners?
Answer:
Yes,foreign citizens receive national treatment inobtaining licenses.
Question 5
What isthebasis forissuing permits? Arepermits issued onadiscretionary basis? e.g.,with
respect totheprovision ofenvironmental services suchasthose relating to"surveying, andgeodesic
works, cartographic works andcadastre, andaerial photography ',arepermits issued ona
non-discriminatory basis bytheMain Department ofGeodesy (etc.)?
Answer:
Theprocedure forobtaining licenses toconduct surveying, geodesic works, cartographic works
andcadastre, andaerial photography isprovided inthelistoflegislative andnormative acts.WT/ACC/UKR/24/Add.1
Page3
OnConfirmingRegulationonTerms,ConditionsandRulesforAerophotography,TopographyGeodesy,
Cartography, Cadastre Survey Performed bytheAgents ofEntrepreneurial Activity, onTerms,
Conditions andRules forLicense Granting Procedure andControl oftheirObservance. (KHTA -
2.07-01-93)
Order oftheMain Department ofGeodesy, Cartography andCadastre attheCabinet ofMinisters of
Ukraine ofMay19,1993 No.24Registered intheMinistry ofJustice ofUkraine ofJuly22,1993
No.93
According totheResolution oftheCabinet ofMinisters ofUkraine of13.01.93 No.18“On
Making Changes andAmendments totheResolution oftheCouncil ofMinisters oftheUkrainian Soviet
Socialist Republic ”ofApril 151992No.99 which gives theMain Department ofGeodesy, Cartography
andCadastre therighttogrant licenses Iorder:
1. Toconfirm theRegulation onTerms, Conditions andRules forAerophotography, Topography
Geodesy,Cartography,CadastreSurveyPerformedbytheAgentsofEntrepreneurialActivity;onTerms,
Conditions andRules forLicense Granting Procedure andControl oftheirObservance which willbe
enclosed.
2. Toadopt theabove indicated Regulation bytheInspection ofDerzchgeonagliad.
3. Toauthorize P.O.Romanishen theFirstDeputy totheHead oftheMain Department tocontrol
thefulfilment oftheOrder.
Confirmed bytheorder ofthe
Ukrgeodezcartography of19.05.93 No.24
Regulation onTerms, Conditions andRules forAerophotography, Topography Geodesy, Cartography,
Cadastre Survey Performed bytheAgents ofEntrepreneurial Activity, onTerms, Conditions andRules
forLicense Granting Procedure andControl oftheirObservance. (KHTA -2.07-01-93)
Agreed withDerzchcompidpriemnichtvo
Regulation provides general andspecific conditions andrulesforaerophotography, topography
geodesy,cartography,cadastresurvey,grantinglicenses(permits)totheagentsofentrepreneurialactivity
forcarryingoutactivitywhicharesupposedtobelicensedaccordingtothecurrentlegislationofUkraine.
Regulation alsoprovides control overtheobservance ofthese rules anddetermines theprocedure of
considering andexecuting documents bytheMain Department ofGeodesy, Cartography andCadastre
attached totheCabinet ofMinisters ofUkraine.
Regulation provides conditions, under which licenses oftheagents ofentrepreneurial activity
canbecancelled, suspended orprolonged.
Taking intoaccount specific conditions ofperforming indicated activity Resolution determines
thelistandformat ofdocuments submitted forthelicense granting purposes.
1. General provisions
1.1 Regulation wasdeveloped onthebasis oftheLawofUkraine “OnEntrepreneurial Activity ”
of07.02.1991 taking intoaccount changes andamendments tothisLawof15.10.1992 according to
theResolution oftheCouncil ofMinisters oftheUkrainian Soviet Socialist Republic of15.04.1991WT/ACC/UKR/24/Add.1
Page4
No.99“OntheProcedureofGrantingAgentsofEntrepreneurialActivitySpecialPermissions(Licenses)
forCarrying outCertain Types ofActivity andontheAmount ofCharges fortheStateRegistration
oftheAgents ofEntrepreneurial Activity ”withchanges andamendments introduced bytheResolution
ofthecabinet ofMinisters ofUkraine of13.01.1993 No.18.
1.2 Licensing isperformed forthepurposes ofstatecontrol overthetypes ofactivity indicated
inthisRegulation, overthefulfilment ofworks according totherequirements ofnormative andtechnical
actsoftheMain Department ofGeodesy, Cartography andCadastre attached totheCabinet ofMinisters
ofUkraine; forthepurposes ofproviding established procedure forregistering, keeping andutilizing
materials andinformation onthefulfilled works forstatecartography, preventing duplication ofworks,
protection ofthestateandconsumers fromnon-qualitative topography geodesic, engineering geodesic
andcartographic products.
1.3 Licensegivestherighttotheagentsofentrepreneurialactivitytoexercisewithoutanyrestrictions
alltypes ofactivity indicated initattheterritory ofUkraine.
1.4 Special permits (licenses) totheagents ofentrepreneurial activity fortopography geodesy,
cartography works, cadastre surveys andaerophotography aregranted bytheMain Department of
Geodesy, Cartography andCadastre attheCabinet ofMinisters ofUkraine inperson oftheHead of
theMain Department anditsDeputies.
1.5 Inspection oftheStateGeodesic Supervision isresponsible forconsidering license applications
oftheagents ofentrepreneurial activity.
1.6 Regulation iscompulsory forallagents ofentrepreneurial activity andalsoforforeign legal
andnatural persons which areperforming aerophotography, topography geodesy, cartography works,
cadastre surveys intheterritory ofUkraine.
2. License granting procedure
2.1 Toreceive alicense agents ofentrepreneurial activity shallsubmit totheInspection oftheState
Geodesic Supervision documents thelistofwhich isdetermined bytheresolution oftheCouncil of
Ministers oftheUkrainian Soviet Socialist Republic ofApril 15,1991 No.99andalsobythis
Regulation.
2.2 Application forreceiving alicense canbesubmitted foralltypes ofactivity provided bythe
resolution ofthecabinet ofMinisters ofUkraine ofJanuary 13,1993 No.18.
2.3 ApplicationandotherdocumentsareconsideredbytheofficersoftheStateGeodesicSupervision
which analyze abilities oftheapplicator forcarrying outworks observing current requirements ofthe
normative andtechnical acts.
2.4 Estimation criteria which determine thepossibility ofgranting alicense, itssuspension or
cancellation arebased onthenormative andtechnical actsoftheMain Department ofGeodesy,
Cartography andCadastre attheCabinet ofMinisters ofUkraine.
2.5 Ifthepositive decision ismade Main Department ofGeodesy, Cartography andCadastre at
theCabinet ofMinisters ofUkraine grant alicense foraperiod notlessthan3years (Annex 1).WT/ACC/UKR/24/Add.1
Page5
3. License registration procedure
3.1 Toreceive alicense thefollowing documents shallbesubmitted totheInspection oftheState
Geodesic Supervision:
bythelegalperson:
- application (Annex 2);
- copies ofthedocuments ofassociation;
- staffreference (Annex 3);
- reference ontechnical provision ofworks (Annex 4).
bythecitizen:
- application (Annex 2);
- copyofthedocument certifying thelevelofeducation;
- copyofthelabor book.
3.2 When granting alicense totheagents ofentrepreneurial activity there arenorestrictions on
territorial location ofthepotential works.
3.3 Main Department ofGeodesy, Cartography andCadastre attheCabinet ofMinisters ofUkraine
shallconsider documents during theperiod notlonger than30daysafterwhich applicator iseither
granted alicense orgiven areasonable refusal.
3.4 Payment forthelicense ismade bytheagent ofentrepreneurial activity when adecision on
granting alicense ismade.
3.5 Inspection oftheState Geodesic Supervision ofUkraine shallregister granted licenses.
4. Specific terms, conditions andrules forthefulfilment ofworks
4.1 Aerophotography, topography geodesy, cartography andcadastre surveys intheterritory of
Ukraine areperformed bytheagents ofentrepreneurial activity whohadundergone stateregistration
intheexecutive committees oftheRadas ofPeople ’sDeputies attheplace oftheiractivity andhad
received alicense.
Agents ofentrepreneurial activity shallobserve following terms, conditions andrulesintheir
activity:
- tohave aspecial education oftheengineer (technician) andland-surveyor, astronomer
land-surveyor, aerophotography land-surveyor, mine-surveyor, cartographer, topographer and
certain experience intheprofessional work; citizen musthavelength ofservice asanengineer
fortheperiod notlessthan3years, asatechnician -5years;
- tohaveaspecial equipment andmachinery which would allow himtoapply different methods:
from remote-controlling (space andaerospace) todirect location measurement toproduce
cartographic materials ofadifferent scalewhich canbepresented ingraphic anddigital form
(Annex 4);
- tohaveameteorologicalequipmentandmachinerywhichareusedbytheentrepreneuraccording
totheprocedure determined bythecurrent legislation;
- nottoviolate requirements ofallcurrent normative andtechnical actsoftheMain Department
ofGeodesy, Cartography andCadastre attheCabinet ofMinisters ofUkraine;
- toregister thebeginning oftheworks, tosubmit report documents tothebody which has
registered works, tosubmit information onthefulfilled works fortheexamination tothe
Inspection oftheState Geodesic Supervision ofUkraine.WT/ACC/UKR/24/Add.1
Page6
5. Control overobservance ofthespecific terms, conditions andrules oftheactivity
5.1 Whencarryingoutactivityunderthelicense,duringthelicensevalidityperiod,MainDepartment
ofGeodesy, Cartography andCadastre attheCabinet ofMinisters ofUkraine controls observance
oftherequirements ofnormative andtechnical actsinthisfield, andalsoterms, conditions andrules
provided bythisRegulation.
5.2 According totheresults ofentrepreneur ’sexamination theactwiththelistofexamined works,
theircorrespondence tothegranted license, current normative actsandtechnical description, andalso
conclusion withtheestimation ofthefulfilled works quality isdrawn up.
Actisexecuted induplicate andsigned bytheexaminer andtheentrepreneur (Head ofthe
enterprise)
5.3 Ifagents ofentrepreneurial activity have violated specific terms, conditions andrules of
Aerophotography, Topography Geodesy, Cartography, Cadastre Survey Main Department ofGeodesy,
Cartography andCadastre attheCabinet ofMinisters ofUkraine onthebasisoftheactgives written
instruction onelimination ofthedetermined violations orsuspends thelicense fortheestablished period
oruntilthemoment when thisviolations areeliminated.
5.4 Prolongation ofthelicense isperformed bytheMain Department ofGeodesy, Cartography
andCadastreattheCabinetofMinistersofUkraineaccordingtotheestablishedprocedureofitsgranting.
Question 6
Arethere quantitative restrictions, either discriminatory ornon-discriminatory, affecting the
issuanceofpermitsandlicenses?Arethereeconomicneedstestsorpublicconvenienceandnecessity
teststhatmust bemetbefore apermit orlicense canbeissued foraparticular service, e.g.the
provision oftransportation services tothegeneral public?
Answer:
Generally, obtaining alicense isaformal procedure. Insome (sensitive) sectors (banking and
insurance activity), there isaseparate, non-discriminatory procedure forobtaining alicense. This
procedure isnotdiscriminatory. There arenoquantitative restrictions ordiscriminatory provisions,
which could influence theissuance ofpermissions andlicenses. There isnotestforeconomic necessity
orpublic comfort andneed, which would berequired toissueapermission oralicense foraseparate
service, except noted inthelistofexemptions fromRNB schedule ofUkraine onservices. Transport
services arerendered tothepublic onanon-discriminatory basis.
Question 7
Paragraph 3(c)atpage 3oftheSchedule states that:"Anemployment permit isnotrequired
for:directors ofjoint ventures andforeign agents ofeconomic activity operating inUkraine".
Canada requests that thisbeclarified oramended, asappropriate, toensure itcovers
intra-corporate transferees (managers, specialists andexecutives) andbusiness visitors. There
should benorequirement foranemployment permit forthose inthiscategory.
Answer:
Thegeneral regime astothekeypersonnel willbeprovided inthehorizontal partofthedraft
oftheUkrainian services schedule, where theabove mentioned regime isforeseen.WT/ACC/UKR/24/Add.1
Page7
Question 8
What isthecurrent level ofthefeeandwhat arethe"expenditures related tothisprocedure"
thatareusedtosettheamount ofthefee? Aresuchfeespublished?
Answer:
Forthepreparation ofeachpermit onemployment andextension ofthistermafeeintheamount
ofoneminimum permonth wageischarged. Thissumgoestothereimbursement ofexpenses, connected
withconduct ofthis(chancery) work. Thepayment isconducted bytheemployee inUkrainian hryvnias
orFCC according totheofficial exchange rate.
Question 9
Thecurrent visaregime appears tomake itdifficult toobtain temporary entry forbusiness and
professional people unless theyhaveawork permit. HowwillUkraine liberalise temporary entry
requirements forprofessional andbusiness people?
Answer:
Thegeneral procedure ofentry offoreigners intotheterritory ofUkraine andtheirdeparture
isprovided bythepoints 11,12and24oftheRules ofEntry intotheTerritory ofUkraine for
Foreigners, theirDeparture fromUkraine andTransit Movement ontheTerritory, confirmed bythe
Regulation oftheCabinet ofMinisters ofUkraine No.1074 of29December 1996. Itwasdescribed
inthehorizontal partoftheDocument WT/ACC/UKR/24. There arenorestrictions for“keypersonnel ”
atthecurrent moment, asmentioned inthedraftofUkrainian services schedule.
Specific Commitments Sector
Professional Services
Question 10
Does Ukraine alsointend tocover important professional services, such asbookkeeping,
architectural, engineering, veterinary services, inanyfuture offer?
Answer:
Yes.
Question 11
Citizenship requirements appear tobeextensive withrespect tolegalandauditing services. These
arerestrictions wind) effectively exclude foreign service suppliers from establishing inUkraine.
Would Ukraine consider replacing thenationality requirement byamore limited sectoral coverage
ofUkraine 'scommitments, forexample byoffering more limited commitments ongiving legal
advice inhome country lawandinternational law,thereby opening upatleastsome ofthemarket?
Answer:
Inaccordance withtheArticle 5oftheUkrainian Law"OnAudit Activity" acitizen ofUkraine
whohasaqualification certificate toconduct auditactivity inUkraine canbeanauditor. Anauditing
company isdetermined asanorganization which hasalicense toconduct audit activity inUkrainian
territory. Anauditor istheHead ofthiscompany.WT/ACC/UKR/24/Add.1
Page8
Thetotalsizeoffounders 'share (participants, shareholders) intheauthorized capital ofauditing
company cannotexceed 30%iftheyarenotauditors.
TheArticle 6ofthisLawalsoestablishes thatauditing companies canbecreated onthebasis
ofanyforms ofownership.
Fortimebeing, theMinistry ofJustice ofUkraine hasnoinformation onpossible changes
intheLawofUkraine "OnAudit Activity".
SeealsoResponse toQuestion No.12.
Question 12
Canforeign lawyers provide legal services?
Answer:
InaccordancewithArticles3and4oftheUkrainianLaw“OnEntrepreneurship”bothUkrainian
citizens andcitizens ofother countries canbeasagents ofentrepreneurial activity. Citizens offoreign
countries havetherighttooffer legal services inUkraine afterreceiving ofspecial permit /license/
intheMinistry ofJustice ofUkraine toconduct legalpractice.
Entrepreneurs whohavetheabove-mentioned license canofferconsultations andexplanations
onlegalissues, compose applications, claims andotherdocuments oflegalcharacter. Theycanrepresent
interests ofcitizens, enterprises andorganizations pertheirprocurationem intheCourt, localauthorities
andother statebodies forcivilandeconomic cases andcases onadministrative infringements. They
alsocanconduct legalservice ofenterprises, organizations andinstitutions andlegalservice oftheir
foreign economic activity, etc.
Toreceive alicense toprovide legal services thedocuments thatconfirm appropriate legal
education, registration ofacitizen asanagent ofentrepreneurial activity andpayment forissuance
ofalicense shallbesubmitted totheMinistry ofJustice ofUkraine
Inaccordance withtheArticle 2oftheUkrainian Law"OntheBar"onlyacitizen ofUkraine
whohashigher legaleducation, length ofservice aslawyer orassistant tolawyer notlessthantwo
years, haspassed aqualification examination, hasreceived acertificate withtherighttoconduct legal
activity andhassworn "The OathoftheUkrainian Lawyer" canbeasalawyer inUkraine.
Inaddition tooffering theabove-mentioned legalservices, protection ofcitizens incriminal
cases isanexclusive competence oflawyers.
Also, according totheArticle 3ofUkrainian Law"OnNotary" onlycitizens ofUkraine who
havehigher legaleducation (University, Academy orInstitute), havespent six-months internship in
anotary 'soffice orwithanotary whoisengaged inaprivate notarial practice, havepassed qualification
examination, andhavereceived acertificate withtheright toconduct notarial activity canbeasa
notary.
Firstofall,itisnecessary tohaveperfect knowledge ofalmost allfields ofUkrainian legislation
andpractice tomake notarial actions. Such requirements arestipulated foranotary 'squalification.
Toconduct intermediary activity withprivatization securities intheUkraine itisnecessary
toreceive aspecial permit (license) according totheArticle 4oftheUkrainian Law "On
Entrepreneurship".WT/ACC/UKR/24/Add.1
Page9
Article 17oftheUkrainian Law"Oncitizenship" determines requirements related toacceptance
oftheUkrainian citizenship.
Question 13
Ifso,what aretheyallowed todo?
Answer:
SeeResponse toQuestion No.12.
Question 14
What aretherequirements forforeign lawyers inorder topractice legal activities?
Answer:
SeeResponse toQuestion No.12
Question 15
What aretheprocedures forforeign lawyers tobeabletoobtain thequalification toprovide legal
services?
Answer:
SeeResponse toQuestion No.12.
Question 16
With respect toissuing permission oralicense, canUkraine ensure theobligations under GATS
Articles 2(MFN), and6(reasonable, objective andimpartial administration ofmeasures?
Answer:
SeeResponse toQuestion No.12.
Question 17
Could Ukraine explain thescope ofactivities thatareallowed, aswellastherequirements, with
regard to:
a) general legal activity;
b) attorney activity;
c) notarial activity; and
d) agency?
Answer:
Seethelistofthementioned services inthedraftoftheUkrainian services schedule andresponse
toQuestion No.12.
Question 18
Itisstated that"only aUkrainian citizen maybeanattorney". What aretherequirements to
become acitizen? Arethere anyexceptional measures thatallow anon-Ukrainian citizen tobecome
anattorney?WT/ACC/UKR/24/Add.1
Page10
Answer:
Requirements tobecome acitizen ofUkraine arestipulated byarticle 17oftheLawofUkraine
“OnCitizenship ”.
Article 17.“OnAdmission toBecome aCitizen ofUkraine ”.
Foreign citizens andstateless persons can,upon theirrequest, become citizens ofUkraine.
Theterms andconditions tobecome citizens ofUkraine shallbeasfollows:
1) renunciation offoreign citizenship;
Thisruleshallnotcover thepersons thathavearrived inUkraine forpermanent residence and
aredesirous tobecome thecitizens ofUkraine oncondition theyhadbeenbornortheyproved that
atleastonoftheirparents, either agrandfather oragrandmother, hadbeenbornonitsterritory, and
donothaveforeign citizenship.
(thisitemhasbeenmodified inconsistence withtheLawNo.2949 of01.28.93)
2) permanent residence intheUkraine ’sterritory during thefiveprevious years.
(item 2part2article 17isprovided inedition ofLawNo.2949)
3) knowledge oftheUkrainian language toanextent sufficient forverbal communication;
4) available legalsources ofexistence;
5) acknowledgement andimplementation ofUkrainian Constitution.
Therequirements above maynotbeconsidered onlyunder exceptional circumstances pursuant
tothePresidential decision withregard tocertain persons thathavegranted great services tothe
Ukrainian state.
Thesimplified procedure ofgranting thecitizenship ofUkraine canbeapplied towomen that
havegotmarried tothecitizens ofUkraine, upontheirrequest, provided thattheyrenounce theirforeign
citizenship.
Thefollowing persons shallnotbeadmitted tobecome citizens ofUkraine:
1) those whocommitted acrime against themankind orwere exercising genocide, committed
actsofviolence against thenational sovereignty ofUkraine;
2) sentenced toimprisonment forgrave crime.
Question 19
Inthe1stmode, itisstated "through commercial representation". Could Ukraine explain about
it?
Answer:
Thelegislation ofUkraine doesnotdetermine “Commercial representation ”asawayofoffering
accounting services.
Question 20
What isthelegal nature oftheterm “firm”?WT/ACC/UKR/24/Add.1
Page11
Answer:
TheArticle 2oftheUkrainian Law “OnEnterprises inUkraine ”determines kinds of
entrepreneurship duetoownership forms established bytheUkrainian Law“Onownership ”.That
islegislation doesnotdetermine conception of“firm”.
Question 21
Itisstated thatthe“total number ofafirm'sauditors must beatleast 30%”.With regard to
other members ofafirm, arethere anyrestrictions?
Answer:
SeeResponse toQuestion No.11.
Question 22
Therequirement thatonlyUkrainian citizens maybeauditors doesnotseem tobeappropriate.
Arethere anyother requirements?
Answer:
SeeResponse toQuestion No.11.
Question 23
Weareinterested indetermining what specific commitments Ukraine isprepared tomake with
respect toforeign legal consultants (advisory services onforeign andpublic international law).
Answer:
Currently Ukraine doesnothaveaspecial normative actwhich regulates activity offoreign
advisers. Astotheobligations, seetheDraft schedule ofUkraine onspecific commitments intheservices
sector.
Inaccordance withinstruction oftheCabinet ofMinisters ofUkraine dated 16February 1995
No.83-p; theconclusion ofagreements oninvitation offoreign advisers isconducted onlyinconcord
withGolovderzhsluzhba (theMain State Service ).
Question 24
WenotethatonlyUkrainian citizens arepermitted toprovide certain types oflegalandauditing
services. Does Ukraine intend toliberalise access byextending recognition tosuppliers of
professional services? Isso,when would thishappen?
Answer:
SeeResponse toQuestion No.11.
Professional Services-Taxes
Question 25
Does theUkraine have plans tointroduce regulation inthisfield?WT/ACC/UKR/24/Add.1
Page12
Answer:
According totheArticle 3oftheUkrainian Law"OnEntrepreneurship" entrepreneurs have
therighttomake decisions without limitations andconduct anyactivity independently ifitdoesnot
contradict legislation. Thelegislation ofUkraine determines peculiarities ofregulation forsome types
ofEntrepreneurship.
TheSupreme Rada ofUkraine, withpresentation oftheCabinet ofMinisters ofUkraine,
determines thelistofactivities which areunder licensing andthelistofactivities where entrepreneurship
arenotapplied because ofincreased requirements towork safely andthenecessity tocentralize
management functions.
Atpresent, direct licensing inthefieldoftaxservices isnotprovided, butservices onapplication
oftaxlegislation (calculation procedure, taxpayment, rights andobligations oftaxpayers, etc.)can
beconducted asservices referred toinlegal practice which islicensed duetotheArticle 4ofthe
above-mentioned Law.
Question 26
Weunderstand thatthere arenorestrictions affecting thissector asithasnotyetbeenregulated.
Would thisimply thatoncethissector isregulated, there could berestrictions? Ifso,wewould
appreciate information onwhen thissector willberegulated asitwillnotbepossible toobtain
aclear picture ofUkraine 'sservices regime andofanypossible concessions until thattime.
Answer:
Initsdraftoftheservices schedule Ukraine undertakes obligations nottoapply restrictions
inthenoted sector.
Communication Services
Question 27
Inthecontext oftelecommunications services, could Ukraine explain what ismeant bythephrase
"Bypass ofpublic network isnotpermitted" under mode I,cross-border supply? Isthisintended
tomean thatcall-back services areprohibited, orareother services covered?
Answer:
Because oftheState monopoly ontheprimary network itisimpossible toconduct services
inthisway.
Question 28
Asitisnotpermitted tobypass the"public network", doesthismean that, aslongasthelines
areleased from themonopoly, supply ofallpublic voice telephony services ispermitted?
Answer:
Connected withtheState monopoly ontheprimary network, supply ofallpublic telephony
services tothesupplies isnotpermitted.
Question 29
Inthecontext ofmobile communications, what ismeant bythe"establishment ofassociations
orjoint ventures"?WT/ACC/UKR/24/Add.1
Page13
Answer:
Inthecontext ofmobile communications, “establishment ofassociations orjointventures ”ispossible
provided theformofproperty (thecontrol packet ofshares) oftheexisting mainenterprise ispreserved.
Question 30
Inthecolumn oflimitations onmarket access andinthe1stmode, itisstated "bypass ofpublic
network isnotpermitted". Could Ukraine explain about it?
Answer:
Thisisexplained bytheimpossibility ofprivate companies toowntheprimary networks in
Ukraine.
Question 31
Inthesector ofprivate-leased circuit services andinthe3rdmode, itisstated "exclusive monopoly
ofstate communication enterprises". Dosuchenterprises provide onlyspecial circuit services?
What isthescope oftheservices provided bythisenterprise?
Answer:
Thewhole complex ofservices forlease ofprimary channels canbeconducted bytheState
enterprise only. Non-state owned enterprises canparticipate inthelocalprimary network withcertain
restrictions.
Question 32
Intheelectronic mailservices sector andinthe1stmode, itisstated "bypass ofnational network
isnotpermitted". What actually isthe"national network"? Isthere adifference between this
andthe"public network" mentioned above?
Answer:
No,itisthesame.
Question 33
Weunderstand thatwithregard tosectors i)ton),legislation hasnotbeen completed. Could
Ukraine explain about thecurrent situation anditsprospect forcompletion?
Answer:
TheDraft Laws “OnOperators ”and“OnFrequency Regulation ”arebeing developed.
Question 34
Itisnotclear what themarket access restriction "only general network maybeused" means.
Answer:
Itisanerror. Onlythegeneral network ofpostmaynotbeused. There arenoother restrictions.
Question 35
What scope isthere forgeneral liberalisation inthissector? DoesUkraine intend tocommit itself
totheregulatory principles setoutinthereference paper developed within theNegotiating Group
onBasic Telecommunications?WT/ACC/UKR/24/Add.1
Page14
Answer:
Connected withthefact,thatUkraine doesnotparticipate intheNegotiating Group onBasic
Telecommunications, noconclusions canbemade atthecurrent stage.
Question 36
Clarification oftheexact scope oftherestrictions inthisareawould beappreciated
Answer:
General commitments inthetelecommunications sector seetheDraft schedule ofUkraine on
specific commitments intheservices sector.
Question 37
Itwould appear thattheState’sexclusive rights onthefixed network inbasic telecommunications
prevents companies from engaging inresale. Could Ukraine confirm ifthisisthecase?
Answer:
TheState’sexclusive rights onthefixed network inbasic telecommunications donotprevent
companies from engaging intheresale.
Question 38
Astheaimofarticle 24oftheCommunications Actistofacilitate demonopolisation of
communications, hasatimetable been setfortheremoval oftheState’sexclusive rights onthe
primary network (except local) andsatellite telephone service?
Answer:
No.
Construction Services
Question 39
Could Ukraine clarify theterms under which jointventures areremitted inthissector? Isthere
anyceiling onthepercentage offoreign ownership -andifthere isnotalimit arethere any
restrictions ontheestablishment ofsubsidiaries byforeign companies?
Answer:
Activity ofjointventures inUkraine isregulated bytheLaws ofUkraine “OnProperty ”,“On
Business ”,“OnEnterprises inUkraine ”,“OnRegime ofForeign Investments ”andother legaland
legislative acts.
TheaboveLawsofUkrainestipulateforjointactivityinthesphereofconstruction,allconditions
provided forother branches ofeconomy, andthere arenopeculiarities foractivity inthesphere of
construction.
Inaccordance withtheLawofUkraine “OnRegime ofForeign Investments ”,there isno
restriction ontheupper limitforforeign-owned shares inthesphere ofconstruction, andthere isno
restriction onforeign companies establishing branches.WT/ACC/UKR/24/Add.1
Page15
Question 40
Weseekanexplanation oftheterm"unlimited construction" forcross-border supply inthegeneral
building construction subsector.
Answer:
Theterm“unlimited construction ”forcross-border supply inthegeneral building construction
does notexist. Astothegeneral commitments, seetheDraft schedule ofUkraine onspecific
commitments intheservices sector.
Financial Services-Insurance
Question 41
With respect toinsurance, weappreciate Ukraine 'sintention toundertake broad national treatment
guarantees. However, market access intheform ofestablishment ofacommercial presence is
fairly limited through minority participation inlocal firms. Moreover, activities ofbrokers are
restricted tonational insurers. IsUkraine willing toconsider granting better market access
commitments, allowing for100%foreign ownership, aswellasdirect branching?
Answer:
Notinthenearest future.
Question 42
Wenotethatinsurance activity inUkraine mayonlybeconducted byUkrainian insurers and
thatforeign participation intheinsurance industry islimited to20% ofshares inUkrainian
insurance companies. When andhowwillUkraine improve market access forforeign suppliers
inthissector?
Answer:
Since 1January 1997, theforeign participation maybeupto49%.
Financial Services -Banking
Question 43
Minimum capital requirement imposed onbanks withforeign participation arediscriminatory.
Does Ukraine have anyplans toreduce these discriminatory capital requirements?
Answer:
Therequirements onminimal capital established forthebanks withforeign capital arenot
discriminative. Ukraine would liketoinvite toitsterritory onlystrong foreign banks andbanks with
foreign capital. Atthesametime, asystem ofmeasures onincreasing ofcharter funds isbeing developed
andownership ofcapital ofthenational bank system with thepurpose ofstrengthening ofits
competitiveness withthebanksystem ofdeveloped countries isunder way.WT/ACC/UKR/24/Add.1
Page16
Question 44
Could Ukraine clarify themeaning ofitsmarket access commitment fordeposit taking: doesthe
limitation to"subsidiaries which areresidents ofUkraine" exclude foreign participation, oris
itsimply meant toindicate thatlocal incorporation isrequired (and thus toexclude direct
branching, asitisindicated inUkraine 'sreplies toadditional question, dated 1May1996)? In
thatcontext clarification would alsobeuseful ofthenational treatment limitation.
Answer:
Forexecution oftheprovisions mentioned inthequestion oftheEC,legalisation offoreign
agentsofafinancialsphereisnecessarywiththepurposeofadjustmentoftheiractivitywithrequirements
ofthecurrent legislation ofUkraine. Theformofpresence offoreign financial andbanking companies
shallbedetermined bythenational legislation ofUkraine thatdoesnotprovide forthepossibility of
branches establishing forfinancial andbanking companies.
Question 45
With respect toloans, regulation No329of23December 1996 islisted asanational treatment
limitation. CanUkraine explain thediscriminatory nature ofthisregulation?
Answer:
ThisDecree isnotdiscriminative. It’smain content isdirected totheprotection offoreign
creditors from possible losses. Atthesame time, theproposals oftheNational Bank ofUkraine on
simplification oftheprocedure ofgranting credits bynon-residents totheresidents ofUkraine have
beensubmitted totheGovernment.
Question 46
Payment andmoney transmission services canonly"beperformed bybanks whoareUkrainian
residents". Read together with(thecorresponding national treatment limitation, thisseems to
completely exclude activities offoreign service suppliers. Isthisindeed thecase?
Answer:
Foreign service companies cangrant proper services through correspondent accounts ofbanks
resident ofUkraine, andalsothrough correspondent accounts ofthebanks non-resident inthebanks
resident ofUkraine.
Question 47
Theprovision ofguarantees andcommitments seem tobeexclusively reserved totheUkrainian
State, oratleast toresidents ofUkraine (seethenational treatment limitation). Isthere any
intention toextend these provisions?
Answer:
Ukraine grants Governmental Guarantees exclusively under theStatePrograms. Thefinancial
andbanking establishments havetheright togrant loanguarantees within theircompetence. There
arenoprohibitions ongranting guarantees toresidents ofUkraine bynon-residents ofUkraine without
physical presence attheterritory ofUkraine.WT/ACC/UKR/24/Add.1
Page17
Question 48
Trading forownaccount orforaccount ofcustomers islargely excluded fornon-residents. Does
thisalsoexclude theestablishment ofsubsidiaries withforeign participation ?
Answer:
There arenorestrictions onthismatter.
Question 49
Access tomoney broking isscheduled as"notpermitted" but,under national treatment, Ukraine
indicates ways ofpossible participation offoreign capital insuchactivities. Could thisbeclarified?
Answer:
Thismatter isnotregulated bytheUkrainian legislation.
Question 50
Asregards assetmanagement, doesUkraine intend toextend anyform ofmarket access toforeign
service suppliers, whoarecurrently excluded entirely from thissector?
Answer:
Yes.
Question 51
Compared withUkraine 'sreplies toadditional questions, dated IMay1996, certain restrictions
appear tobeapplied, buthavenotbeenscheduled inthelatest document Could Ukraine indicate
whether itintends tomaintain suchrestrictive measures, inparticular the15%limit onforeign
capital inUkraine 'sbanking sector, andthe35%limitation onforeign share holding inbank
subsidiaries?
Answer:
Inthenearest future -yes.
Question 52
What isthecriteria concerning the"first ratebank"?
Answer:
Atpresent, under preparation ofregulatory acts,theNational Bank ofUkraine andcentral
banks ofother countries donotusetheconcept “first-class bank”,anduseinstead generally accepted
world rating systems.
Question 53
Itisstated that"availability ofagreements onthesupervision ofbanking activity between the
National Bank ofUkraine andthecentral banks ofother countries". Could Ukraine explain about
the"agreements"?WT/ACC/UKR/24/Add.1
Page18
Answer:
Normally, theagreements between theNational Bank ofUkraine andthecentral banks ofother
countries provide cooperation inconducting ofpayments andsubscribe totheBasel Convention on
transparency ofthebanking systems andlaundering of“dirtymoney ”.
Question 54
With respect tothe49%limit ontheparticipation intheregistered fundofaUkrainian insurer,
wewishtoascertain whether Ukraine willbeliberalising inthisarea. Welookforward toreceiving
from theUkraine information onbanking andfinancial services inlight ofthe10April 1996
changes toprocedures forlicensing banking activity andregistering banks (footnote 6,page13).
Answer:
Nofurther liberalization isforeseen ininsurance activity inthenearest future (participation
offoreign partisrestricted to49%onlysince 1January 1997, before thistimethisshare constituted
20%).
Instruction onlicensing banking activity willbesubmitted inthecomplete setoflegislative
andnormative acts.
Question 55
Wenotethatforeign banks arenotpermitted tosetupbranch networks andthatforeign ownership
ofsubsidiaries islimited to35%. WillUkraine remove therestrictions onbranch establishment
andraise theforeign equity limitofsubsidiaries toalevelabove 50%? When doesUkraine intend
toliberalise thissector?
Answer:
Thecurrent legislation ofUkraine doesnotprovide arevocation oftheprovisions onprohibition
toestablish branches fortheforeign banks andshares oftheforeign companies inbranches. Amendments
tothelegislation arepossible under condition ofstrengthening theNational Bank sector. However,
thisdepends onthetendency ofmacro-economical development ofthecountry.
Question 56
Wenotethattheparticipation offoreign capital inthebanking system ofUkraine cannot bemore
than 15percentoftheaggregate value ofstatutory funds ofcommercial banks registered in
Ukraine? IsUkraine prepared toprovide national treatment inthisarea?
Answer:
Ukraine isready toprovide national treatment inthissphere.
Transport Services
Question 57
Could Ukraine clarify thesystem forcharting portfeesinUkrainian ports? Arefeescharged
onanon-discriminatory basis between Ukrainian vessels andvessels flagged inthird countries?
Answer:
Inaccordance withArticle 84oftheCommercial Navigation Code ofUkraine, theresolution
oftheCabinet ofMinisters ofUkraine of18April 96No.442approved theProvision onPortDuesWT/ACC/UKR/24/Add.1
Page19
(ship’s,channel, light, berth, anchor andsanitary dues) established forvessels (sailing structures) that
sailunder theState Ukrainian Flagaswellasunder foreign flags. Theamount offeesshalldepend
onthevessel ’ssizethatiscalculated incubic meters andequals asumofthree values, indicated in
acertificate ofmeasurement oradocument thatreplaces it:thebiggest length ofavessel, thehighest
board ofavessel.
Feesarecharged onanon-discriminatory basisbetween Ukrainian vessels andvessels flagged
inthirdcountries .
Question 58
Could Ukraine clarify theconditions forestablishment intheroad haulage sector -for
straightforward road haulage andmulti-modal operations?
Answer:
Road transport inatwo-way connection andbytransit intothirdcountries shallbeprovided
inaccordance withbilateral intergovernmental Agreements onInternational Road Transportation of
Passengers andCargo.
Question 59
DoesUkraine intend tocontinue applying thediscriminatory 15%charge onforeign airlines where
aUkrainian carrier doesnotoperate onthesame route?
Answer:
Charging statefeesfromforeign aircompanies foroperation ofairlines onanon-parity basis
isaworld-wide practice. Thus, “Ukrainian Airlines ”stateaircompany, carrying outaone-way
operation oftheKiev-Delhi airlines, paidacompensation totheIndian sideintheamount of40USD
pereachcarried passenger.
ThecompensationprocedureoftheabovementionedintheResolutionoftheCabinetofMinisters
ofUkraine of28September 1993No.819“OnCreation oftheStateSpecialised Fund ForFinancing
National Expenditures onAircraft Activity andUkraine ’sParticipation inInternational Organisations ”
doesnotcontradicttheICAOdocument(DOC8632-C/968)“ICAO’sPolicyonTaxationinInternational
AirTransport ”.Intheexplanation oftheresolution oftheICAO Board of14December 1993onTaxes
Related ToSaleorUseofInternational AirTransport, itisstated initem2.5that:“Butalltaxes and
feesthataredirectly orindirectly allocated forfinancing thecostsofaircraft facilities, shallbeconsidered
reasonable andshallnotbeasubject ofthisresolution ”.
Taking intoaccount theabove mentioned, a15%feecannot beconsidered asdiscriminatory.
Question 60
Could Ukraine givemore information about theMFN limitation concerning Ukraine andtheEU
countries? Could Ukraine alsoprovide thetextofthisarrangement?
Answer:
ThetextofAgreement onPartnership andCo-operation withEUwassubmitted totheWTO
Secretariat.WT/ACC/UKR/24/Add.1
Page20
Question 61
Insector a)passenger andcargo transportation andinthe3rdmode, itisstated that"commercial
presence isprohibited". What isthepurpose ofthisrestriction?
Answer:
Restrictions arejustified bythepolicy oftheUkrainian Government inRailTransport that
isanexclusive property ofthestate. Ukrainian lawdoesnotprovide forprivatisation andcreation
ofacompetitive environment inthefieldofrailtransport.
Question 62
What isthepurpose ofthelimitations listed onpage 23withregard toa)passenger transportation,
andb)cargo transportation?
Answer:
SeeResponse toQuestion No.61.
Question 63
Wenotethatroad haulage companies arelimited to49%foreign ownership. What isUkraine
planning todotoliberalise foreign equity opportunities intheroad transport services sector?
Answer:
Restrictions of49%foreign property incompanies, including transport companies, arearesult
oftheneedtoensure stateinterests andprotect domestic carrier during thetransitional economic period.