RESTRICTED
WORLD TRADE WT/ACC/UKR/4
16October 1995
ORGANIZATION(95-3082)
Original: English
ACCESSION OFUKRAINE
Questions andReplies
TheGovernmental Commission onUkraine 'sAccession totheWTO hasprovided thereplies
reproduced hereunder tothequestions submitted byCanada. Theletter "n"afterthenumber denotes
questions submitted aftertheWorking Party meeting heldon27-28 February 1995. TheGovernmental
Commission hasindicated thatquestion numbers below follow thenumbering ofWTO document
WT/L/20.
_______________
TABLE OFCONTENTS
Questions
II. ECONOMY AND FOREIGN TRADE 1nand25n
Pricing Policy 2nand23n-24n
Privatization 3n-4n
III. FOREIGN TRADE REGIME
1. Imports Regulation
Tariff Regulation Development 5n-7n
Customs Tariff 30n
Import Taxation Regime 9n-10n
Anti-Dumping andSafeguards 6n
Customs Valuation 11nand22nand28n
Settlements andDuty Payments 12nand31n-32n
Non-Tariff Measures
Licensing 29n
Quotas 13n-14n
Standards 15n-16n
Agriculture 17n-19n and26n
State Trading 18n
Government Procurement 20n
IV. TRADE AGREEMENTS 8nand21n
SERVICES 27nand34n
Unfair Competition 35n
Statistical Data 33nWT/ACC/UKR/4
Page2
Question 1n
Thereplyhereexpressestheintentiontoimpose"atemporarylimitationon",and"aconsiderable
reduction innon-essential imports", inthecontext ofa"negative tradebalance". However, onpage146
itisnoted thatforgoods andservices together, forthefirstninemonths of1994, Ukraine hadasurplus
ofUS$271 million.
- Inviewofthissurplus, hasthebasisfortheimport reduction programme notchanged?
Does Ukraine plantore-examine itsintention inthisregard?
- Would Ukraine bewilling tohavethispolicy examined inthelightofArticle XIX?
- Whywould thecustoms tariff, along withexcise duties levied oncertain luxury goods,
notbeanadequate setofpolicy toolstodampen demand for"non-essential" goods?
Itisstated thatUkraine intends tostart"theuseoftariff regulation inthecaseofunfair,
overvalued prices". What isthemeaning of"overvalued prices"? Iftheprice ofanimported good
were higher thantheaverage price ofadomestic equivalent, what problem isperceived insucha
situation?
Asimplied above, wearenotconvinced thatUkraine hasdemonstrated theneedforageneral
programme forthereduction ofimports. Nevertheless, werequest thatUkraine keepWorking Party
members fullyinformed regarding anydevelopments inthismatter (eg:product coverage; nature of
measures; timeframe; justification).
Reply 1n
Itshould benoted thatthe$271 million surplus figure wasnotaccurate since itdidnottake
intoaccount energy imports. Hadoilandgasimports beenincluded, thebalance-of-payments figure
would haveshown adeficit.
Nonetheless, Ukraine hasalready re-examined itsimport reduction programme andplans to
regulateimportsonlythroughcustomstariffs(anewscheduleisbeingdrawnupatpresent)andsafeguard
measures. Adraftofthesafeguard legislation isbeing provided fortheworking party.
Theuseoftheexpression “unfair, overvalued prices ”wasamisleading misnomer. Itreferred
togoods imported aspayment forUkrainian goods exported through barter contracts. Since thegoods
imported wereoften“overvalued ”inthattheirworth wasnotsufficient tocover thevalue ofthegoods
exported, andthissituation wasleading toasizeable balance-of-payments deficit, itwashoped that
placingtariffsmightdiscouragethedevelopmentofsuchbartercontracts.However,theabove-described
policy wasnever implemented.
Question 2n
Inregard toreply No.5,whatareTNZED codes? They appear tobeH.S.codes, withthe
exception oftheitemdescribed as"Pea(inbulk)" for1103.19, forwhich theH.S.description is"Groats
andmealofcereals other thanwheat, oats,maize andrice".WT/ACC/UKR/4
Page3
Reply 2n
TNZEDistheUkrainian acronym forH.S.codes, translated literally as“Trade Nomenclature
ofForeign Economic Activity ”.Anyinaccuracies inthetranslation ofitemdescriptions arebeing
corrected inthedraftofthenewtariff schedule.
Question 3n
Inreply 7,itisstated thatanumber ofdraftlawsonprivatization havebeendrawn up,including
theResolution oftheSupreme Rada "OnAdoption oftheListofEntities notSubject toPrivatization".
Once theSupreme Rada hasapproved/amended thisresolution, wewould liketobeprovided with
detailed information astowhich sectors willnotbesubject toprivatization, andifapplicable, which
sectors willnotbeopentoforeigners.
Reply 3n
Upon therequest oftheChairman oftheCommission onEconomic Policy andManagement
oftheNational Economy attheSupreme Rada ofUkraine, dated 14January 1995, No.651/4, the
Ministry ofIndustry sent"TheListofProperty, managed bytheMinistry andwhich mustremain State
Property notSubject toPrivatization According totheDecree oftheCabinet ofMinisters ofUkraine
dated 31December 1992, No.26-92". ThisisaListprimarily ofmilitary anddefence installations.
TheListofEnterprises, which arenotSubject toPrivatization, approved bytheSupreme Rada
ofUkraine on3March 1995 isenclosed.
Theactivities ofStateForeign Trade Enterprises isregulated bytheStatute, approved bythe
Minister ofIndustry ofUkraine. (Statute isenclosed). TheMinistry ofIndustry ofUkraine isnot
responsible forconversion oftheMilitary Industrial Complex.WT/ACC/UKR/4
Page4
ANNEX
1.Objectives andtheSubject ofActivity oftheTrade Enterprises
oftheMinistry ofIndustry
1. Enterprises shallbeestablished toengage inforeign economic activity withthepurpose of
assisting thefounding agencies, with:
- thesupplying oftheMinistry ofIndustry 'senterprises withimported rawmaterials,
equipment andspare parts, financed byexporting theirproducts (labour, services);
- engaging inexports under government contracts andstateorders;
- coordinatingtheactivitiesoftheseenterprisesandagenciesinforeigneconomicrelations.
2. Theenterprises engage inforeign economic activity andinter-economy relations onacontractual
basis, inorder toprovide theenterprises oftheMinistry ofIndustry withimported equipment, spare
parts andrawmaterials byexporting theirproducts (labour, services).
3. Thetrade enterprises oftheMinistry ofIndustry, inaccordance withcurrent legislation of
Ukraine shallengage insome orallofthefollowing:
(a) export, import, re-export andexchange ofgoods (barter) withother enterprises on
acontractual basis;
(b) registration ingovernmental organizations forgeneral andsingle uselicences andquotas
allocations foronexport andimport ofgoods anddistributing them, together withthe
founding agencies, among theparticular enterprises oftheMinistry ofIndustry engaged
inforeign trade activity;
(c) implementing tasks, together withother enterprises andorganizations, andaccording
totheorders ofthefounding agencies, fortheexport oftheproduction oftheMinistry
ofIndustry 'senterprises;
(d) coordinating theimplementation ofgovernment programmes connected withtheexport
ofproducts oftheMinistry ofIndustry upon request ofthefounding organizations;
(e) addressing issues concerned withefficient provisions ofmeans oftransport forcarrying
outshipments onthepartofenterprises engaged inforeign economic activity;
(f) granting protocol-consular services toenterprises engaged ineconomic activity through
theappropriate government bodies;
(g) signing contracts withforeign enterprises engaged ineconomic activity andtheir
representatives inUkraine;
(h) setting uptheirownbranches orrepresentative offices inUkraine andontheterritory
ofother countries inaccordance withthelegislation ofthese countries, participation
ininternational non-governmental economic organizations;
(i) ensuring thatallenterprises oftheMinistry ofIndustry engaged inforeign economic
activityapplycoordinatedpricesuponthesigningofcontractsfortheexportofproduction;WT/ACC/UKR/4
Page5
(j) searching forpartners among foreign enterprises engaged ineconomic activity, with
theaimofestablishing economic relations withthem andwithother enterprises and
organizations;
(k) market research fordeveloping newforms offoreign economic activities andproviding
information services inthisarea;
(l) organizing andparticipating inspecialized exhibitions, fairs, workshops, conferences,
symposiums bothinUkraine andabroad;
(m) meeting withandreceiving representatives offoreign enterprises engaged ineconomic
activity, bothontheirowninitiative andontheother enterprises 'andorganizations '
request;
(n) representing theinterests ofenterprises andorganizations ofthechemical industry upon
theirrequest ingovernment organizations andinrelation withenterprises engaged in
economic activity;
(o) concentrating thefinancial resources ofenterprises engaged ineconomic activity on
avoluntary, mutually beneficial basis forproduction andsocial undertakings, which
require considerable expenditures;
(p) toengage Ukrainian andforeign specialists toimplement theirownforeign economic
activity onacontractual basis;
(q) independently anduponrequest ofthefounding agencies, toengage inother activities,
which donotcontradict active legislation.
2.Economic andSocial Activity ofEnterprises
1. Thebasic general indicator oftheeconomic performance ofanenterprise isprofit.
2. Profit, which isleftafterpayment oftaxes andother payments made thebudget andtothe
centralized funds provided forbyLaw, isnetprofit anditisdirected totheneeds oftheenterprise.
Procedures fortheuseofannual profits byenterprises.
3. Theenterprise, independently, within thebounds oftheactive legislation, shalladopt theform,
system andamount ofsalary andother kinds ofmaterial incentives.
4. Theenterprise shallindependently planitsactivities andplanitsfurther development.
5. Theenterpriseshallsellitsgoodsandservicesaccordingtoprices,whicharesetontheUkrainian
market, taking intoaccount international prices andthelegislation ofUkraine onprices.
6. Theenterprise shall beentitled tousebank credits onacommercial basis andtolendany
available funds onthebasis ofacontract andtocharge interest fortheiruse.
7. Theenterprise shallmaintain records ofitsactivities andshallreport onitseconomic activities
tothestatistics organizations. Theenterprise shall beresponsible forthetruth andaccuracy ofits
information.WT/ACC/UKR/4
Page6
8. TheDirector-General oftheenterprise, theChief Accountant andallworking personnel shall
takeanymeasures necessary toprotect thestateproperty entrusted tothem from theftandabuse by
personnel.
9. Social development issues, including theimprovement ofworking conditions, living conditions
andthehealth ofworkers shallbedecided bytheworking personnel.
3.Liquidation andReorganization oftheEnterprise
1. Theliquidation andreorganization oftheenterprise shallbeimplemented inaccordance with
theLawofUkraine "OnEnterprises ofUkraine" andother legislative acts.
2. Theliquidation andreorganization (merger, association, division, separation, transformation)
ofanenterprise shallbeimplemented onthedecision ofthefounding agency oronthejudgment of
thepeople 'sorarbitral court incases provided forbythelegislation.
3. Upon theliquidation orreorganization ofanenterprise, theworkers made redundant shallbe
guaranteed theprotection oftheirrights andinterests according totheLabour Code ofUkraine.
4. Theliquidation oftheenterprise shallbeimplemented bytheCommission onLiquidation,
established bythefounding agency, andincases ofbankruptcy oftheenterprise, bythecourt orarbitral
court.WT/ACC/UKR/4
Page7
ListofUnits Subordinated totheMinistry ofIndustry
Which maynotbePrivatized
(Approved bytheSupreme Rada ofUkraine
TheDecree of3March 1995)
Territory
(1)Metallurgical industry
(2)Chemical industry
(3)Timber industry
(4)
1.TheCrimean
Autonomous
Republic5762329
TheCrimean Production
Association "Titan"
5761732
TheSakiChemical Plant
2.Vinnytsa oblast 5766379
TheVinnytsa State
Enterprise Production
Association Khimprom
3.Volyn oblast 5393091
TheDnipropetrovsk
Coke-Chemical Plant
5393108
TheNikopol State Pivdennotrubny
Plant
190934
Industrial enterprise
"Krivbasvybukhprom"5633939
TheDniprodzerdjinsk State
Plant ofChemical Research
152135
TheUkranian State Scientific
Research Design
Technological Institute of
Elastic Materials andProducts
(DINTEM)
TheState Scientific Research
Institute forlarge tyres
188311
TheUkranian State Institute of
Metallurgy Plants Design
(Ukrdippromez)
4689369
TheState Institute ofIron-ore
Industry Enterprises Design
(Krivbassproject)
190472
TheUkrainian Scientific Research
Institute ofWork Safety inMining
(NDIBPG)
4689352
Scientific Research andRolling
Institute ofConcentration and
Agglomeration ofMetal Ores
(Mechanoobrobchormet)
5393151
Scientific Research Mining Institute
193677
TheUkranian Scientific Research
Institute ofInformation and
Technical andEconomic Research
inMetallurgyWT/ACC/UKR/4
Page8
Territory
(1)Metallurgical industry
(2)Chemical industry
(3)Timber industry
(4)
5410731
Scientific Research Institute of
Labour Mechanization inthe
Ferrous Metal Industry andRepair
andMechanical Work (NDI
mekhhormet)
194694
TheVilnohorsk State Mining and
Metallurgical Group
5.Donetsk oblast 192318
TheTrust
"Donbaskoksokhimremont"5825716
ThePrydniprovsk State Unit
"Transamiak" (Horlivka)
193714
TheDonetsk Scientific Research
Metal Industry (Donchormet)209355
TheUkranian State Scientific
Research Institute ofPlastics
193720
TheDonetsk Scientific Research
Institute ofMiningTheNikitovsk Mercurial
Group
201514
TheDonetsk Scientific Research
Institute ofNon-Ferrous Metals
(Don IKM)
6.Zakarpatska
oblast +
Zaporozya
oblast194731
TheZaporozya State Group of
Titanium andMagnesium205015
TheBerdyansk Plant ofGlass
Fibre
5454626
TheTavriysk Research Industrial
Concentration Factory
190414
TheUkranian Research Institute of
Special Steel (Ukr NDIspetsstal)
201081
TheUkranian Scientific Research
Design Institute ofTitanium
00196204
Electrool Plant "Specialized
enterprise fortheProduction of
Carbon-and-Carbonaceous
Materials" of"Ukrgrafit"
8.Ivano-Franlivsk
oblast209119
TheState Aluminium
Scientific Research Institute
9.Kiev oblast
10.Kirovohrad
11.Luhansk oblast 206285
TheSeverodonetsk State
Institute "Skloplastproject"
5792891
TheRozdilsk State Mining
Chemical Enterprise "Sirka"WT/ACC/UKR/4
Page9
Territory
(1)Metallurgical industry
(2)Chemical industry
(3)Timber industry
(4)
13.Mykolayevsk
oblast4770114
TheMykolayevsk State
Administration "Transamiak"
14.Odessa oblast 191276
TheDzerzhynsky Odessa Steel-
Rolling Association
15.Poltava oblast
16.Rivno oblast 13975364
TheRivno State Enterprise
"Metaloproject"
17.Sumy oblast 5766358
TheSumy Production
Association "Khimprom"
14005076
TheSumy State Scientific
Research Institute ofMineral
Fertilizers andPigments
05761318
Lease Enterprise
"Svema"
18.Ternopol oblast
19.Kharkiv oblast 4606024
Institute NDPI "Energostal"203341
ThePervomaysk State
Enterprise "Khimprom"
14072049
Enterprise "Energochormet"209740
TheState Scientific Research
Institute ofChemistry
190325
TheState Institute ofLabour and
Social Economic Research (DPI
andSEF)4643605
TheState Special Design
Office "Ukrplastic"
490443
TheUkranian State Scientific
Research Institute ofCoal and
Chemistry (VHIM)
00204783
TheKharkiv Welding Plant
20.Kherson oblast
21.Khmelnytsk
oblast
22.Cherkasy oblast 4643611
TheCherkasy State Scientific
Research Institute ofIonic
Exchange Materials
23.Chernivtsy
oblast
24.Chernihiv
oblastWT/ACC/UKR/4
Page10
Territory
(1)Metallurgical industry
(2)Chemical industry
(3)Timber industry
(4)
25.Kiev oblast 209131
TheKiev State Institute of
Chemical Industry Economics
244127
TheState Certificate Research
Center ofDetergents
4689398
TheState Scientific Research
Institute ofthe
Agrobiochemical, Chemical
andPharmaceutical Industries
26.Sevastopol
Allprivatized companies willbeopentoforeigners, except thatforeign "natural persons" may
notownland. Anycorporation, however, evenif100percentforeign owned, mayownland.
Question 4
Thesecond andthirdpartsofthequestion donotappear tohavebeenanswered. Also, please
provide atime-frame forfurther privatization offarmandfoodprocessing industries.
Reply 4n
According tothedataoftheMinistry ofAgricultural Production, forMay1995 more than
400State agricultural enterprises (20percent) were privatized and18percentofprocessing and
agroservice enterprises. Atthebaseofreformed Soviet farms joint-stock ventures arecreated and
attheprocessing andagroservice enterprises -openjoint-stock ventures. Inthecollective sector (which
isactually alsotheformofStateenterprise) 96percentofthecollective farms arealready transformed
intojoint-stock ventures.
Theprogrammeofmarkettransformationofagriculturewhichenvisagescompletionofprocessing
andconsiderable partofagroservice enterprises andalsoSoviet farms isconfirmed for1995.
Thesystem oftheMinistry ofAgriculture andFood includes thefollowing State trading
organizations:
Ukrtekhagroservis exports -agricultural products
imports -agricultural equipment
-fuelandlubricants70percent
20percent
Ukrprodresursyrovyna exports -dairy andmeatproducts
imports -material andtechnical supplies for
theprocessing industry 30percent
Ukragrokhim exports -agricultural products
imports -herbicides andpesticides 70percentWT/ACC/UKR/4
Page11
91industrial complexes wholesailing andretaining fruitandvegetables:
exports -potatoes
-fruit
-vegetables
imports -fruit
-vegetables5percent
In1995, 18of109fruitandvegetable complexes were privatized. Therestareplanned to
beprivatized by31December 1996.
Theconcern Ukrtekhagroservis andtheassociation Ukragrokhim areplanned tobeprivatized
through auction bytheyear2000.
Agro-industrial complex ofUkraine nowincludes: (a)according tothetypeofownership -
collective agricultural enterprises, Soviet farms -Stateenterprises; (b)agricultural (farmer) farms -
notState-owned enterprises. According tothefunctional intention: processing, construction andother
enterprisesandorganizationswhichserveproducersofthefoodcommodities.Numberofpeopleworking
intheagro-industrial complex exceeds fourmillion. Specific weight oftheStateenterprises amounts
to25percent,non-State -75percent. Thenon-State enterprises engaged 71percentofallagricultural
workers, intheareaoftheagricultural their lands amount to75percent, value ofthecapital
production assets -72percent,volume ofthegross production -70percent. During theperiod from
1991 to1995 number offarmer non-State farms increased from 2,100 to32,000.
AttheState forthebeginning of1995 approximately 10,000 enterprises areremaining
State-owned, volume ofthegross production ofthese enterprises comes to30percent,butaccording
totheprivatization programme allthese enterprises aretobeprivatized untiltheendof1995.
Atpresent, 18fruitandvegetable wholesale andretailindustrial complexes havebeenprivatized
through thecreation ofjoint-stock companies. Theymainly tradeinpotatoes, andfruitandvegetables.
They import 5percentofallgoods.
According tocurrent data,more than400Statefarms andother Stateagricultural enterprises
(onefifth) havebeen privatized andaswellas18percentofprocessing andagricultural service
enterprises. TheStatefarms havebeenreformed toagricultural enterprises andjoint-stock associations,
andprocessing andagricultural services enterprises havebeenchanged topublic corporations.
Approximately 9,000 collective farms, thatis96percent, havebeenreformed through the
process ofdividing theproperty intoshares. Thecollective farms havebeenreformed intocollective
agricultural enterprises, peasants 'associations, cooperative associations, andstock-holding companies.
State organizations oftheagro-industrial complex donotspecialize inimport offood
commodities. Import ofthefoodcommodities iscarried outbythetradeenterprises which werealmost
allprivatized during theperiod ofsmall privatization.
Ninety-one industrial complexes wholesaling andretailing fruitandvegetables now, tosome
extent, specialized inimport ofgoods, inparticular, import potatoes, fruitandvegetables. Nineof
these 91industrial complexes wholesailing andretailing fruitandvegetables hasbeenprivatized to
date. Theabove-mentioned imports compiled 5percentofthetotalvolume ofagricultural productsWT/ACC/UKR/4
Page12
turnover. In1995, 18of109industrial complexes wholesaling andretailing fruitandvegetables were
privatized. Therestofthem willbeprivatized until31December 1996.
Question 5n
Would Ukraine please provide anupdate ofitsplans foranewtariffschedule forearlyin1995
anditsintention withrespect tosetmaximum tariff ratesat30percent?
Reply 5n
Thenewtariff schedule mentioned inreply No.10hasnotbeenprepared yet.Butaccording
tothepolicy ofeconomic reforms oftheGovernment ofUkraine, supported bytheIMFandtheWorld
Bank, theGovernment ofUkraine ismeeting itsobligations onharmonization ofthecustoms tariff,
namely, adheres tothecondition thatthemaximum tariffrateonimports is30percentandthevolume
ofimports withratesover30percentdoesnotexceed 1percentofthetotalimport amount. However,
during thisperiod ofeconomic restructuring, inparticular through thepossibility ofbankruptcy and
thecontinued decrease inproduction, alotofproposals arebeing submitted toincrease theratesof
import tariffs. Some changes intheexisting import tariff werealready made during thefirsthalfof
1995 (Resolution oftheCabinet ofMinisters ofUkraine No.39,209andothers). Taking into
consideration thenecessity tobegin thenegotiating process ontariffconcessions forUkraine 'saccession
toGATT/WTO, theGovernment ofUkraine hasdecided toprepare totransform theimport tariffduring
afive-year period taking intoconsideration proposals oftheministries anddepartments onincreasing
rates, andalsotaking intoconsideration requirements oftheIMF, WBandWTO. Work onthenew
customs tariff isexpected tobecompleted inSeptember 1995.
Question 6n
Itisnoted thatUkraine isintheprocess ofpreparing trade remedy laws (countervail,
anti-dumping, safeguards). WillUkraine supply theWorking Party withthetexts(including regulations)
when theyareready?
Intheevent ofaCanadian anti-dumping investigation against Ukrainian exporters, Canada
willsolicit information directly from theexporter. Inthatregard, what would betheroleofthe
GovernmentalCommissiononAnti-DumpingInvestigationsinRelationtotheExportofUkrainian-Origin
Goods during ananti-dumping investigation byanother government?
Reply 6n
AdraftoftheUkrainiansafeguardlegislationisreadyandincluded.Theanti-dumpinglegislation
isbeing formulated atthistime, while work onthecountervailing lawsisstillattheconceptual level.
TheroleoftheGovernmental Commission onAnti-Dumping Investigations inRelation tothe
Export ofUkrainian-Origin Goods istocomplete thequestionnaire senttotheGovernment ofUkraine
(since mostjurisdictions stillregard Ukraine asaState-trading monopoly), andtoprovide assistance
andguidance tothegenerally inexperienced exporters involved.
Question 7n
Reply No.21isnotclear-areIsrael andSouth Africa currently theonlycountries whose exports
totheUkraine facefulltariff rates? Arethese theratesgiven inthelastcolumn onthelistincluded
aspartofreply No.10,orarethere actually three rates(MFN, favourable andfull)? Specifically,WT/ACC/UKR/4
Page13
which ratesdoesCanada faceforagricultural goods? Please listcountries treated as"developing"
andalsothose which receive MFN rates.
Reply 7n
There arethree rates: full,MFN orreduced rates, andpreferential rates. Atpresent, Israel,
South Africa, Croatia, Slovenia, andTaiwan aretheonlycountries whose exports facefulltariffrates,
although binational agreements haveeither already beensigned orarecurrently being drawn up,that
willaccord MFN status toimports fromIsrael, South Africa, Croatia andSlovenia -probably bythe
endof1995.
Preferential rates, which are0percentforitems inchapter 1-24oftheCustoms Tariff and
thesameasMFN ratesforitems inChapters 25-97 areaccorded toimports fromdeveloping countries,
listed below.
ListofDeveloping Countries
1. Albania 27. Gabon
2. Algeria 28. Haiti
3. Anguilla 29. Guyana
4. Angola 30. Gambia
5. Antigua andBarbuda 31. Ghana
6. Argentina 32. Guatemala
7. Aruba 33. Guinea
8. Afghanistan 34. Guinea Bissau
9. Bahamas Islands 35. Honduras
10. Bangladesh 36. Hong Kong
11. Barbados 37. Grenada
12. Bahrain 38. Djibouti
13. Belize 39. Dominica
14. Benin 40. Dominican Republic
15. Bermuda 41. Ecuador
16. Bolivia 42. Mali
17. Botswana 43. Maldives, Republic of
18. Brazil 44. Malta
19. British Virgin Islands 45. Morocco
20. Brunei Darussalam 46. Mexico
21. Burkina Faso 47. Micronesia
22. Burundi 48. Mozambique
23. Bhutan 49. Mongolia
24. Vanuatu 50. Montserrat
25. Venezuela 51. Myanmar
26. VietNam 52. NamibiaWT/ACC/UKR/4
Page14
53. Nauru 92. Yemen
54. Nepal 93. Jordan
55. Niger 94. Cape Verde
56. Nigeria 95. Caiman Islands
57. Netherlands 'Antilles Islands 96. Kampuchea
58. Nicaragua 97. Cameroon
59. Nide 98. Quatar
60. Saint Helen 99. Kenya
61. Turks andCaicos Islands 100. Cyprus
62. United Arab Emirates 101. Kiribati
63. Oman 102. China
64. Pakistan 103. Republic ofKorea
65. Panama 104. Colombia
66. Papua NewGuinea 105. Comoros Islands
67. Paraguay 106. Congo
68. Peru 107. Korea
69. Rwanda 108. Costa Rica
70. ElSalvador 109. Coted'Ivoire
71. Samoa 110. Cuba
72. Saint Thomas 111. Kuwait
73. Saudi Arabia 112. Cook Islands
74. Swaziland 113. Laos
75. Seychelles 114. Lesotho
76. Senegal 115. Liberia
77. St.Vincent andtheGrenadines 116. Lebanon
78. St.KittsandNevis 117. Libya
79. Saint Lucia 118. Mauritius
80. Singapore 119. Mauritania
81. Syria 120. Madagascar
82. Equatorial Guinea 121. Malawi
83. Ethiopia 122. Malaysia
84. Egypt 123. Tanzania
85. Zaire 124. Togo
86. Zambia 125. Tokelau
87. Zimbabwe 126. Toga
88. India 127. Trinidad andTobago
89. Indonesia 128. Tuvalu
90. Iraq 129. Tunisia
91. Iran 130. TurkeyWT/ACC/UKR/4
Page15
131. Uganda 139. Jamaica
132. Uruguay 140. Solomon Islands
133. Fiji 141. Somalia
134. Philippines 142. Sudan
135. Central African Republic 143. Suriname
136. Chad 144. Sierra Leone
137. Chile 145. Thailand
138. SriLanka 146. Syria
Question 8n
With reference toUkraine 'sFTAs withRussian andBelarus, dotheparties consider thatthe
terms oftheFTAs would beconsistent withGATT Article XXIV? Specifically, whatarethephase-in
periods, ifany? What percentage oftotalbilateral trade is,orwillbe,covered onaduty-free basis?
Areanynewbarriers ordisadvantages created forthetrade ofnon-parties?
Please indicate which agricultural goods areaffected byeachofUkraine 'spreferential trading
agreements, andthemargins ofpreferences forthese goods foreachapplicable agreement.
Reply 8n
Theterms ofUkraine 'sFTAs withRussia andBelarus areinprinciple consistent withGATT
Article XXIV. Nophase-in periods areforeseen. Virtually allbilateral trade, including trade in
agricultural goods, willbeonaduty-free basis. Nonewbarriers ordisadvantages arecreated forthe
trade ofnon-parties.
Question 9n
Thefirstsentence ofthequestion doesnotappear tohavebeenanswered.
Reply 9n
No,Ukraine doesnotrebate thecustoms taxoninputs thatarenotconsumed intheproduction
ofgoods forexport. Machinery andequipment imported byforeign investors comes intoUkraine
duty-free whether intended fordomestic consumption orforexport.
Question 10n
Thequestion asked alsoforexcise dutyrates; these were notgiven intheanswer.
Itisstated that"from thebeginning of1995 theexcise duties willbeequal forbothdomestic
andimported goods". Wasthispolicy infactimplemented on1January 1995?
Reply 10n
Please refertotheResolution oftheSupreme RadaofUkraine No.3951/12 of4February 1994,
"OntheListoftheGoods toWhich Apply Excise Duties andTheir Rates". Resolution oftheCabinet
ofMinisters No.526of5August 1994 andtheDocument L/7855.WT/ACC/UKR/4
Page16
Taking intoaccount principles anddisciplines oftheGATT/WTO concerning excise dutyrates
unification forallgoods irrespective oftheirorigin, there isarecommendation totheCommission
onFinances andBanking oftheSupreme Rada ofUkraine tochange thedraftLaw"OntheListof
Goods under Excise andExcise Duty Rates" substantially. ThisLawshould provide forequal tax
basis andexcise dutyunification.
According toclause 28oftheLawofUkraine "OntheStateBudget ofUkraine for1994" import
excise dutyisapplied according tothecustoms value ofgoods together withother customs feesatthe
timegoods gothrough aUkrainian customs border, butnotattimeoftheirfinalsale. However, excise
dutyforgoods ofUkrainian origin iscalculated according totheirselling price.
Theexcise onimported anddomestic products iscalculated differently inconformity withthe
current legislation ofUkraine. When calculating theamount ofexcise, thetaxed turnover onimported
products isdetermined according tothecustoms value ofproducts, calculated inUkrainian currency
according totheexchange ratesetbytheNational Bank ofUkraine, taking intoaccount thetotalof
taxandcustoms duties. Thetaxed turnover ondomestic products iscalculated onthewholesale price
ofproducts,takingintoconsiderationtheexcise.Thus,whentheexciseonimportedcigarettesis100per
cent,asprovided forbythedraftUkrainian Law"OntheSchedule ofGoods (Products) onwhich Excise
isLevied andtheRates ofExcise" which wasadopted bytheSupreme Rada ofUkraine during the
firstreading on26April 1995, theexcise partofthesaleprice willamount to30percentandon
domestic cigarettes -atanexcise 40percent, theexcise partwillbe27percent.
Takingtheabove-mentionedintoaccounttheamountsoftaxonanalogousdomesticandimported
products areapproximately equal, when current ratesofexcise areapplied.
Question 11n
Wemayhaveadditional comments ontheUkrainian customs valuation system afterreceipt
ofUkraine 'sreplies tothequestions posed inthequestionnaire ontheapplication oftheCustoms
Valuation Agreement, "Information onImplementation andAdministration oftheAgreement". Will
Ukraine make thisdocument available totheWorking Party, onceitiscomplete?
Reply 11n
OurrecordsindicatethatthecompletedquestionnaireontheapplicationoftheCustomsValuation
Agreement hasalready beensenttotheWorking Party.
Question 12n
Paragraphs 1and2intheanswer seem tobecontradictory. Please confirm thatnon-residents
arenolonger required topaycustoms duties inconvertible currency.
Reply 12n
Non-residents arenolonger required topaycustoms duties inconvertible currency.
Question 13n
Please confirm thatgrains aretheonlyagricultural itemsubject toexport quotas, andthatthese
quotas willbeeliminated in1995.WT/ACC/UKR/4
Page17
Reply 13n
Grains aretheonlyagricultural itemsubject toexport quotas; theywillbeeliminated bythe
endof1995.
Question 14n
Inlightoftheinformation given inReply No.36,"atpresent there arenoimport quotas",
compliance withArticle 4.2oftheAgreement onAgriculture willconstrain theUkraine tonotapply
import quotas oranyother non-tariff barriers infuture, unless doneinthecontext oftheexceptions
andconditions tobemetasdescribed inthefootnote toArticle 4.2,e.g.incompliance withArticle XIX
(GATT 1994) orbalance-of-payments provisions (GATT 1994).
Reply 14n
Ukraine doesnotapply anyimport quotas. There existlicensing requirements onimports of
castironwastes, steelandplastic production, pharmaceutical, veterinary materials, fertilizers, cosmetics
andpersonal hygiene products, inorder toprotect human andanimal health andtheenvironment.
Question 15n
Isthere apolicy ofmaking even more Ukrainian standards compatible withinternational
standards?
Isthereaninfrastructureforverificationofqualitysuchasqualityaccreditationandderegistration
programmes? Arethere anyvoluntary standards infrastructures orplans toimplement any(i.e.in
areas where nocompulsory standards areineffect)?
Arethere anyUkrainian lawsforregulating weights andmeasures, labelling andpackaging?
Which lawscontrol thesaleofpharmaceutical products? They donotappear inthelistofproducts
covered bythe"UkrCEPRO" system. Isthere aseparate procedure forapproving pharmaceutical
drugs before placement inthemarket?
Reply 15n
Ukraine isamember oftheInternational Organization forStandardization (ISO) from
1January 1993 andInternational Electronical Commission (IEC) from 14February 1993.
On1January 1995, 22Technical Committees forstandardization ofUkraine areactive members
oftheTechnical Committees andSubcommittees oftheISOandIEC, 77Technical Committees and
Observers inalmost 100Technical Committees oftheISOandIEC. Forthepurpose ofproviding
theharmonization ofthenational standards ofUkraine withinternational standards, in1994Ukrainian
StateCommittee forStandardization, Metrology andCertification hasadopted thefollowing normative
documents:
"TheRules ofApplication ofInternational, Regional andNational Standards ofForeign
Countries intheCapacity ofState Standards ofUkraine",
Harmonization ofUkrainian Standards withInternational, Regional andNational
Standards ofForeign Countries, Procedures, Rules andMethods ofImplementation".WT/ACC/UKR/4
Page18
Thedevelopment ofnational standards ofUkraine, which aretobeharmonized withISO
standards, isbeing stimulated through budget funds.
However, theharmonization ofnational standards ofUkraine withinternational standards is
being performed along withthespecific conditions ofsocial, economic andtechnical development of
Ukraine. Thatiswhysome requirements ofinternational standards, testing procedures andseparate
technological processes failed tobeimplemented today.
Yes,thereis.TheUkrainian StateCommittee forStandardization, Metrology andCertification
functioning asaNational Certification Body, hadalready established anaccredited 105bodies and
240testlaboratories forproduct certification, including fivebodies intended forcertification ofproduct
quality systems.
The procedures ofcertification ofquality systems areregulated byanormative
document"CND50-033-94.UkrCEPROcertificationsystem".Qualitysystemcertificationprocedures,
which havebeenformulated duetoprovisions made byISO/IEC Rule48.
Acomplete listofnormative documents ofUkrCEPRO system, setting upprocedures for
accreditation andregistration oftheobjects, which arebeing certified, areenlisted intheUkrainian
Statement onGATT Implementation andAdministration, which isbeing senttocontracting parties
oftheGATT.
ThenationalstandardsofUkraineincludeobligatoryandvoluntary(recommended)requirements.
Theobligatory requirements are:
- requirements providing safety ofproducts forlife,health andproperty ofhuman beings,
environmental protection andrequirements fortesting theseindices andtherearesome
other requirements, which havenotbeenregulated inlegislative sphere, areconsidered
asrecommended ones.
Thefollowing lawsofUkraine aresetting uprequirements forregulation ofweight, measures,
labelling andpackaging:
1. TheRegulation oftheCabinet ofMinisters ofUkraine "OnProviding Traceability
ofMeasurements" No.40-93 of26April 1994(ratified bySupreme Rada ofUkraine
in1994);
2. TheLawofUkraine "OnProtection ofCustomers 'Rights";
3. TheLawofUkraine "OnCustomers Cooperation";
4. TheLawofUkraine "OnProviding Sanitary andEpidemic Security ofPopulation";
5. TheLawofUkraine "OnFreeEnterprise";
6. TheResolution oftheCabinet ofMinisters ofUkraine "OntheTrade Activities
Procedures andPopulation Trade Servicing" No.108of8February 1995.
TheMinistry ofHealth monitors theimport ofpharmaceuticals through licensing, according
toseparate legislation.WT/ACC/UKR/4
Page19
Question 16n
Arethere regulations withrespect toRadionuclide contamination ofspecific foodproducts,
"because ofthecomplicated situation caused bytheconsequences oftheChernobyl disaster"? Can
anexporter offoodtoUkraine obtain blanket "hygienic certificates" ordoeshehavebeobtain a
certificate foreachshipment?
Reply 16n
Thebasic documents used byagricultural specialists tomonitor production inthearea
contaminated byfallout from theChernobyl disaster are:
Temporary acceptable levels ofcesium andstrontium-90 inproduce anddrinking water set
asaresult oftheChernobyl Power Plant disaster "(TP -91)" andapproved byChief StatePhysician
oftheUkrainian SSRA.I.Kondrusev on22January 1991 (seeAppendix).
BQL/Kg. (Litre)
Product Cs-137 Sr-90
Drinking water 18.5 3.7
Milk andcultured milkproducts, suchassourcream, butter, and
solid cheese 370 37
Condensed milk 1,110 110
Powder milk 1,850 185
Margarine andvegetable andanimal fats 185
Meat (beef, porkandmutton), poultry andfish,eggs(mlange) 740
Potatoes, rootcrops, vegetables, edible greens, fruits andberries,
canned vegetables, fruitandberry products andhoney 600 37
Bread andflour products, grain, wheat andsugar 370 37
Fresh wildberries andmushrooms 480
Dried fruits 2,960
Dried mushrooms, wildberries andtea 7,400
Baby food 185 3.7
Medical plants 7,400
Levels ofCs-137 contamination deemed acceptable byinternational organizations andthe
CIScountries areappended (Appendix 1).
2. Control levels formilkandmeatcontamination shallbeworked outbyevery oblast, shallbe
confirmedbyoblastsanitaryepidemicservice,andapprovedbytheOblastAdministrationonAgriculture
andProduction (appended).WT/ACC/UKR/4
Page20
Control Levels forMilk andMeat
(90percentquintal)
District/Oblast Milk BQL/litre Meat BQL/kg.
Kievoblast
(except Polessky andIvankovsky districts)
Polessky
Ivankovsky74
300
7474
400
140
Zhitomir oblast
Volodar-Volynsky
Yemel 'chinsky
Korostensky
Luhinsky
Malinsky
Narodichsky
Novograd-Volynsky
Ovruchsky
Olevsky
Snitynsky74
300
140
370
74
370
140
370
300
74140
140
400
600
140
600
140
140
400
140
Vinnitsa oblast
Volynska oblast
(Kamin '-Kashirsky, Lubeshovsky, Manevichsky districts)74
370140
140
Ricne oblast 370 400
Chernihiv oblast
Koveletsky
Koriukovsky
Repkinsky
Semionovsky
Chernihovsky74
74
140
140
140140
140
400
400
140WT/ACC/UKR/4
Page21
Appendix 1
Acceptable Levels ofRadioactive Matter inProducts
Product Acceptable levels BQL/litre BQL/kg.
1986
USSR1988
USSR1991
USSR1995
Ukraine1992
Belarus1993
Russia
Summary
beta-activityCs-137
Cs-134Cs-137
Cs-134Cs-137
Cs-134
draftCs-137
Cs-134Cs-137
Cs-134
Irrigation water 1
Drinking water 370 18.5 18.5 4 18.5 18
Milk anddairy products 370 370 370 74 111 370
Powder milk 1,850 740 740 740
Animal fats 370 185 185 185 185
Vegetable oil 7,400 370 185 185 185 185
Meat andmeat products 3,700 1,850 740 74 600 600
Eggs (BQL/unit) 1,850 1,850 740 74 600 600
Fish 3,700 1,850 740 185 600 600
Vegetables, fruit, berries 3,700 740 600 60 370 600
Potatoes 3,700 740 600 60 370 600
Fresh wildberries 1,850 1,480 60 370 600
Bread andbread products 370 370 370 40 370 370
Sugar 1,850 370 370 370 370
Fresh mushrooms 18,500 1,850 1,480 740
Dried mushrooms 11,100 7,400 740 3,700 3,700
Medical plants 18,500 7,400
Baby food 370 185 74 37 185WT/ACC/UKR/4
Page22
Product Acceptable levels BQL/kg. BQL/litre
FAO
Food andAgriculture
OrganizationKEC
Recommendations ofthe
IAEA expertsBaltic countries
Irrigation water
Drinking water 1,000 1,000 18.5
Milk anddairy products 1,000 1,000 250
Powder milk 1,000 1,000 370
Animal fats 1,000 1,250 185
Vegetable oil 1,000 1,250 185
Meat andmeat products 1,000 1,250 370
Eggs (BQL/unit) 1,000 1,250 370
Fish 1,000 1,250 370
Vegetables, fruit, berries 1,000 1,250 250
Potatoes 1,000 1,250 250
Fresh wildberries 1,000 1,250 250
Bread andbread products 250
Sugar 250
Fresh mushrooms 600
Dried mushrooms 3,700
Medical plants 2,850
Baby food 1,000 400 185
Exporters offood toUkraine must obtain separate "hygienic certificates" foreach
shipment.
Question 17n
Itisstated thata"Predominant majority offarms isactively participating intheformation of
Stateresources ofagricultural products andrawmaterials" (paragraph 8oftheanswer). Themeaning
isnotclear; could Ukraine expand onthestatement, inorder toclarify it?
Reply 17n
Abetter translation would be:"The majority ofcollective farms areengaged inagricultural
production ofrawmaterials andagricultural products andareselling them totheState".
Agricultural enterprises contribute toStatereserves offoodbyselling theirproduction toState
wholesaling organizations atprevalent market prices.
However, asdescribed intheReply toquestion 9,thisstatement would nowbeoutdated.
Question 18n
What isthemeaning andscope oftheterm"public catering enterprise"?
Itisstated that"The percentage oftotalimports through State-trading enterprises isnotmore
than15percent". However, Ukraine states inreply147that"Despite theprivatization anddevelopment
ofprivate sector, theState-owned enterprises make upaconsiderable partoftheUkrainian economy".
Ifonetakes intoaccount notonlyState-trading entities, butallentities which areState-owned,WT/ACC/UKR/4
Page23
State-controlled, orgranted "exclusive orspecial privileges" bytheState, what percentage oftotal
imports would beaccounted for?
Reply 18n
Imports inUkraine areprovided bythetradeenterprises, themajority ofwhich areprivatized
andtheirimport pertcompiles 15percent. Duetothefactthatbigindustrial enterprises arestillin
theState property theprivatization ofsuchenterprises goesslowly.
Question 19n
Reply No.77states that"Until recently, theprices foragricultural products were subjected
toState regulation. Pricing forforeign-origin products issubject onlytomarket conditions." How
areagricultural prices determined nowfordomestically produced goods?
Reply 19n
According tocurrent Ukrainian legislation, agricultural producers aretheowners oftheirown
production andmake decisions independently onsetting prices andselling theproducts.
Question 20n
Itisstated thatthe"system oftheexport contract andorder willbetransformed, inthebeginning
of1995, intothePublic Procurement System meeting requirements oftheGovernment Procurement
Agreement". Hasthisnewsystem beenimplemented?
Ifso,aredetails available?
Reply 20n
Atthebeginning of1995 thesystem ofState contracts ororders, asitwasin1994, was
eliminated together withthesystem ofexport ofUkrainian production under theState contract.
According totheDecree ofthePresident ofUkraine "OnStateContracts for1995" central bodies of
executive power, authorized bytheCabinet ofMinisters ofUkraine, cover needs ingoods, works,
services oftheStatemanagement bodies, intheareaofdefence, protection ofthesocial order, health
protection,education,culture,socialprotectionofthepopulation,fulfilmentofthescientificandtechnical
projects,creationanreplenishmentoftheStatereserve.Statecontractsmustbecoveredthroughexpenses
allocated bytheStatebudget ofUkraine envisaged forthese purposes. Thesystem ofStatecontracts
isbased ontheprinciples oftheAgreement onStatePurchase ofGATT 1994 andstipulates thatonly
goods forfinalconsumption maybepurchased fortheState'sneeds.
Asforthespecial export regime described inreply 290thenweshould saythatexistence of
thisregime isconnected withthenecessity toregulate theexport ofsome types ofproduction, the
availability ofwhich inthehome market isconstantly restricted andveryimportant forthestable
functioning oftheeconomy ofUkraine (energy, oilproducts, non-ferrous metals, etc.) Elimination
ofthespecified regime isthecompetence oftheSupreme Rada ofUkraine. Nonetheless, the
Government ofUkraine believes itessential topropose totheSupreme RadaofUkraine thatitconsiders
abolition ofthevalidity oftheDecree oftheCabinet ofMinisters ofUkraine "OnEstablishing Special
Export Regime ontheCertain Types ofGoods" No.16-92 of26December 1992.WT/ACC/UKR/4
Page24
Question 21n
What isthemeaning oftheexpression "thebilateral international basis"?
Dothetrade agreements "addenda onmutual supplies ofbasic types ofproducts" imply the
useofbarter orcountertrade? Ifso,towhatextent?
What percentage oftotalimports, byvalue, weretransacted under barter orcounter-trade over
thelastthreeyears? Areimports under barter subject tonormal customs duties? Ifso,whatvaluation
method isusedtodetermine value forduty?
Reply 21n
"The bilateral international basis" refers tobilateral agreements between twoStates.
Yesthe"addenda" imply theuseofbarter. Lastyearbarter amounted to23percentofimports.
In1995, itisestimated at30percent. Reliable figures arenotavailable for1993. Imports under
barter arenotsubject tonormal customs duties.
Question 22n
Ukraine indicated that"costs oftransportation, loading, shipment, unloading andinsurance
uptothefinaldestination ofimport inUkraine" aretaken intoconsideration when calculating thevalue.
Article 8oftheGATT Valuation Agreement indicated thateachsignatory country candecide whether
ornottoinclude orexclude inland andinternational freight fromthevalue. Theresponse, however,
seems toindicate thatdomestic freight inUkraine (final destination) would bepartofthevalue. As
Article 8doesnotallow this,doesUkraine haveplans tobring itsmethodology intoconformity with
theAgreement?
Reply 22n
Thestatement inreply 128wasmisleading. Customs valuation doesnotinclude transport to
thefinalinland destination.
Question 23n
CouldUkrainepleaserespondfullytothesecondparagraphofthequestion,i.e.:"Pleaseprovide
...theGovernment"?
Reply 23n
1. Mechanism fordetermining wholesale andretail prices
-market forces.
2. Mechanism fordetermining government purchase prices
-market forces.
3. Government involvement ininternal sale,offering forsale,purchase, transportation,
distribution oruseofmajor agricultural commodities -government provides expertise
butnodirect control orfinancial assistance.WT/ACC/UKR/4
Page25
With respect toitems 3and4,above, "indicative prices" areineffect forgrains. However,
thesearerecommended rather thanmandatory prices andtheyarebased oninternational market prices.
Question 24n
Inregard toReply 145,please confirm thatbread, flourandinfant foodproducts aretheonly
agricultural items affected by"natural andartificial monopolies" andthussubject toState-regulated
pricing? Does thismeasure apply tosalesfordomestic human consumption only? How areprices
determined forthese products?
Reply 24n
Theinformation willbeprovided shortly withtheblock ofinformation.
Question 25n
CanUkraine estimate, inpercentage terms, whatthe"considerable" partoftheState-owned
economy amounts to?
Reply 25n
Seereply 20n.
Question 26n
Weasked whatagricultural goods theUkraine exports andwhattheprincipal export markets
areforeach. Reply No.152addresses thefirstpartonly-please provide theinformation onthemarkets
forthese goods, asrequested.
Again there isareference to"Pea(inbulk)" forH.S.1103.19 (reply No.152), which should
designate "Groats andmealofcereals other thanwheat, oats,maize andrice". Isthedescription or
theH.S.Code correct?
Reply 26n
Agricultural goods exported from Ukraine include:
HSNomeclature
Frozen meat withnobones 0201-0202 Russia, Turkmenistan, Uzbekistan, Bulgaria
Dried fatless milk 0402-10990 Russia, Lithuania, Turkmenistan
Salt(inbulk) 0201-00910 Russia, Hungry, Belarus
Pea(inbulk) 1103-99000 Russia, Belarus, Lithuania
Margarine 1517-70000 Russia, Lithuania, Latvia
Butter 0405-00100 Russia, Uzbekistan, Turkmenistan, Azerbaijan
Ethyl alcohol, 96% 2207-10000 Russia, Turkmenistan, Bulgaria, Kazakhstan
Vegetable oil 1512-19910 Turkmenistan, Lihtenstain
Wheat 1001-90000 Turkmenistan, Belarus, Slovakia
Corn 1005-90000 Russia, Poland, Bulgaria
Sugar 1701-99100 Russia, Belarus, UzbekistanWT/ACC/UKR/4
Page26
Question 27n
Wearepleased that,according toinformation provided byUkraine (seereply 153), there are
nomarket access ornational treatment restrictions onthesupply ofservices byforeigners, through
anyofthefourmodes ofsupply. However, wenotethatinreply 248economic activity inanumber
ofsectors, including communications, transportation services andtopographic surveying isrestricted.
These would appear tobemarket access restrictions which would contradict theinformation provided
inreply 153.
Reply 27n
According tothecurrent Ukrainian legislation some types ofservices canbeprovided onthe
basisoflicences, issued bytheauthorized Statebody. Foreign participants receive licences according
totheprocedures approved byUkrainian legislation. These licences aregranted tothemontheequal
withtheUkrainian companies basis.
Types ofservices, which aresubject tolicensing:
- Construction works;
- geological andgeodezical works;
- sport, hunting andother firearms;
- legalpractice;
- wining;
- precious stones andprecious metals extraction, theirprocessing andselling;
- preparation andexport ofsecurities;
- providing international anddomestic passengers andloads services;
- topographical andgeodesic survey works;
- aerophotography;
- measurement devices production;
- beerandspirits production.
Question 28n
Ukraine usestheconcept ofdetermining customs value onthebasis ofthevalue ofsimilar
goods ina"dominant" country. Thisdoesnotappear tobeconsistent withtheGATT Valuation
Agreement; doesUkraine intend toadopt themethods prescribed intheAgreement?WT/ACC/UKR/4
Page27
Reply 28n
Atpresent Ukraine develops anewdraftonCustoms Valuation Tariffs which issupposed to
beinconformity withthemethods prescribed intheAgreement. Thedraftwillbeprovided shortly.
Question 29n
Could Ukraine please answer thefollowing question, originally asked inquestion 196: what
aretherequirements toobtain alicence fromtheNational Bank ofUkraine toextend credits andloans
inhardcurrency andtoremit capital onforeign financial markets? (Inother words, whatcriteria are
usedbytheNational Bank ofUkraine inassessing applications from commercial banks?)
Reply 29n
Therequirements toobtain alicence from theNational Bank ofUkraine arethesame asthe
national participants havetofollow. There arenodiscriminations fortheforeign firms. They have
simply tofollow theorder ofalicence issue determined bytheNational Bank ofUkraine.
Regarding therequests oftheNational Bank ofUkraine astotheprocedure ofregistration
andactivities ofthebanks withtheparticipation offoreign capital, theyaregrounded on"ThePrinciples
ofControl Over theForeign Banks", worked outin1992 bytheBazel Committee onBank Control
(Switzerland) andstipulate thefollowing conditions:
- Fulltransparency offoreign investors -legalandnatural persons, from thepoint of
viewoftheirfinancial reliability, business reputation andprevention oflaundering of
"dirty money" inUkraine;
- availability ofnotification oftheauthority ofacentral bank ofaforeign country or
ofitsauthorized organ about thecarrying outofenough control overtheactivity of
theircommercial banks -founders, promoters oftheUkrainian banks withparticipation
offoreign capital.
Thelimitofparticipation offoreign capital inthebanking system ofUkraine mustnotexceed
15percentfrom thecombined sizeoftheauthorized capitals ofthecommercial banks.
Question 30n
Ukraine indicates thatwhere customs dutyisnotpaidina"timely" manner, there isnoright
ofappeal granted. Thisdoesnotappear tobeconsistent withArticle 11oftheGATT Valuation
Agreement. Does Ukraine plantobring itssystem intoconformity?
Reply 30n
Yes,thedraft ofthenewCustoms Valuation Lawclearly designates allrights toappeal in
conformity withGATT norms andprinciples.
Questions 31nand32n
InQuestions 303and304,Ukraine isasked whether thereareanyrestrictions intheremittance
abroad ofprofits offirms. Theanswers referred toreplies 4,60,65-70, 129,200,204,214and303
butnoneofthesereplies answered thequestion specifically. Could Ukraine provide detailed informationWT/ACC/UKR/4
Page28
onanyrestrictions (including restrictions thatmight apply tobothdomestic andforeign firms) regarding
thetransfer ofcapital?
Reply 31nand32n
There arenorestrictions forremittance abroad ofprofits offirms. Itisprotected bythe
provisions ofthe"Law ofUkraine onProtection ofForeign Investments".
Question 33n
Itdoesnotappear thattherequested statistical information hasbeensupplied.
Reply 33n
TheMinistry ofStatistics doesnotmake suchaclassification ofinformational datathathad
been requested, butithasbeen informed about thenecessity toprovide thementioned kindof
differentiation andatpresent theytakecertain measures tomake itmeetthenorms ofinternational
trade organizations statistics data.
Question 34n
Aswell,inreplying toquestion 318,(which asked Ukraine tosetouttheprecise legalcondition
withrespect tooffshore banking andinsurance, aswellascross-border trade) Ukraine stated thatit
would havetoconsult withother government agencies before answering. Arethereanymarket access
restrictions (thatcould apply tobothforeign anddomestic firms) onthesupply ofservices?
Reply 34n
There isnodiscrimination regime oranyother restrictions inoff-shore zones fortheforeign
companies aswellasforUkrainian companies.
Theterm"off-shore company, which incomes arenotsubject totaxation, allocated onthe
territory ofUkraine" isthenewUkrainian taxlegislation.
SuchmeasuresshouldimprovetheeconomyofUkraine,recreatethebrokenindustryreproduction
cycle andincrease Ukrainian economic potential.
Question 35n
Itisstated thatUkrainian lawconsiders "unfair competition" toinclude "comparison withany
goods ofcompeting producers inadvertising". Iftheinformation inacomparison could besubstantiated
asaccurate andfactual, inwhatwaycould suchinformation beconsidered as"unfair"?
Reply 35n
Ifthisinformation issubstantiated asaccurate andfactual, suchinformation could notbe
considered as"unfair".