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28 August 2012

International Trade News. June-August 2012

I. HOT ISSUES

Ukraine ratified the CIS FTA|1|

On July 30, 2012 the Parliament of Ukraine adopted the Law of Ukraine "On Ratification of Free Trade Agreement with Commonwealth of Independent States". Just to remind: On October 18, 2011 the prime-ministers of the CIS countries signed the new version of the CIS FTA. Contrary to the previous version of the CIS FTA of 1994, the new CIS FTA is adapted to the WTO rules as well as stipulates the exact dispute settlement mechanism to be employed by the contracting parties in case of the violation of the CIS FTA provisions. At the same time, the new CIS FTA still have lots of exemptions from the FTA regime applicable to different products, to name but a few: to oil, gas, sugar, spirits, sunflower seed, ferroalloys, cattle, etc.

Liability for violations of personal data protection legislation

Starting from July 1, 2012 the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine Regarding Violations of Legislation on the Personal Data Protection" No. 3454-VI dated June 2, 2011 entered into force. Just to remind: The said Law sets forth liability for the violation of legislation on personal data protection, to name but a few: for failure to notify or untimely notification of individuals on their rights related to inclusion of their personal data into the personal data base, failure to register the databases, etc. The Law envisages administrative or criminal liability depending on damages caused by the respective violation.

II. UKRAINE & WTO

Yemen on track for WTO entry after Ukraine deal|2|

On July 26, 2012 the WTO spokesman Keith Rockwell stated that Yemen has resolved a months-long spat with Ukraine that had threatened Yemen's joining to the WTO. Ukraine had agreed terms with Yemen, enabling the WTO's working party on Yemen's accession to hold a final meeting in late September. Then WTO Member-states will approve Yemen's membership package and send it back to Yemen for ratification, that would make it the 159th member.

Ukraine's tough demands on Yemen had caused friction at the WTO, where some diplomats saw its stance as going against the grain of a new push to make it easier for poorer countries such as Yemen to join. Ukraine had also earlier held out against Laos' membership, but the two sides reached a deal at the beginning of June.

Russia’s WTO accession|3|

On August 22, 2012 Russia became 156th member of the World Trade Organization. Just to remind: On July 10, 2012 the Duma, the lower house of Parliament, and on July 18, 2012 the Federal Council, the upper house of the Parliament, approved the ratification of the Treaty on Russia’s WTO Accession. On July 23, 2012 Russia officially notified the WTO Secretariat that the ratification process was completed. Russia’s terms of membership, including the Working Party Report for Russia’s Accession, the Protocol of Accession were adopted by the WTO at the eighth Ministerial Conference on 15-17 December 2011.

The food market of  Customs Union isformallyclosed from August 22, 2012
 

Pursuant to the Regulation "On the Unified Procedure of Joint Inspections of Facilities and Sampling of Goods Subject to Veterinary Control", which was adopted by the Commission of Customs Union in Decision No. 834 on October 18, 2011, the key principle used by the CU in order to ensure import safety following Russia’s accession into the WTO, will be through audits of the official foreign surveillance system. However, none of the countries have yet been subject to such audits. Consequently, in the nearest future no third country producers of controlled goods will be able to get access to the CU market on the basis of a successful audit. On its official web-site the Federal Service for Veterinary and Phytosanitary Surveillance of Russia says that “therefore, we propose to implement temporary procedures that will aim to mitigate this situation. These procedures will be in place until most of our trading partners are audited. We and our foreign colleagues understand that this is a long process”.

 

Ukraine to be third party in EU-Argentina dispute

 

Ukraine formally notified the interested parties and the WTO Secretariat of its interest in taking part in the consultations under the Dispute DS438, Argentina — Measures Affecting the Importation of Goods, upon the complaint filed by the EU under GATT, Agreement on Import Licensing Procedures, Agreement on Safeguards, Agreement on Agriculture, Agreement on Trade-Related Investment Measures.

III. TRADE DEFENSE REMEDIES AND ANTI-DISCRIMINATORY MEASURES

 

EU imposed a definitive anti-dumping duty on imports of Ukrainian seamless pipes|4|  

 

On 4 July 2012 the Council of the European Union published its decision to maintain the measures against exporting producers of seamless pipes and tubes in Ukraine and Russia|5|.

The rate of the definitive anti-dumping duty applicable to the net, free-at-Union-frontier price, for the companies below shall be as follows:

  • OJSC Dnepropetrovsk Tube Works – 12,3 %
  • LLC Interpipe Niko Tube and OJSC Interpipe Nizhnedneprovsky Tube Rolling Plant (Interpipe NTRP) – 17,7 %
  • CJSC Nikopol Steel Pipe Plant Yutist – 25,7 %
  • All other companies – 25,7 %.

Anti-dumping investigation on  importinto Ukraine of medical glass packing from Russia

Having considered the complaint of PJSC "Maryanivskyy Glassplant", the Interdepartmental Commission on International Trade initiated anti-dumping investigation on import into Ukraine of medical glass packing of volume up to 0,15 liters originated from Russia. The respective official notification was published in the newspaper "Governmental Courieron June 8, 2012.

Discriminatory actions of Kazakhstan against Ukrainian confectioners|6|

On July 2, 2012 the Interdepartmental Commission on International Trade established the fact of discriminatory and unfriendly actions of the Republic of Kazakhstan in relation to the import of confectionery from Ukraine and recommended the Ministry of Economic Development and Trade of Ukraine to address Kazakhstan with a proposal for consideration and settlement of disputed situation in the manner prescribed by Free Trade Agreement with Commonwealth of Independent States. Just to remind: According to Art. 29 of the Law of Ukraine "On Foreign Economic Activity" if the actions of Kazakhstan are recognized discriminatory and unfriendly and are not eliminated by Kazakhstan voluntarily, Ukraine will be entitled to apply the following anti-discriminatory measures: (a) complete ban (complete embargo) on the trade; (b) partial ban (partial embargo) on the trade; (c) deprivation of MFN treatment or preferential special treatment; (d) application of special import duties; (e) application of licensing and/or quantitative restrictions on foreign economic transactions; (f) application of quotas, etc.

Amendments to the Ukrainian legislation in the field of protection against subsidized import|7|

  

On July 25, 2012 the Ministry of Economic Development and Trade of Ukraine published the Draft Law "On Amending the Law "On Protection of National Manufacturer from Subsidized Import"on its official web-site. The Draft Lawprovides the amendments aimed on harmonization of the relevant Ukrainian legislation with the WTO Agreement on Implementation of Article VI of the GATT 1994.  

 

IV. CUSTOMS RELATED ISSUES

Harmonization of Customs and Tax Codes

The Parliament of Ukraine adopted the Law "On Amendments to the Tax and Customs Codes of Ukraine Concerning the Harmonization of Certain Provisions" No. 4915-VI dated June 07, 2012. It entered into force on July 08, 2012. The major aim of the Law is to bring the provisions of the Tax Code of Ukraine with the new Customs Code of Ukraine. Additionally, the Law amends some provisions of the new Customs Code of Ukraine e.g. provides for the list of cases when the certificate of origin shall be submitted during the import in Ukraine etc.

A number of by-laws are adopted in connection with the entrance into force of the new Customs Code of Ukraine

In connection with the adoption of the new Customs Code of Ukraine, the Ministry of Finance of Ukraine has already adopted a number of the orders, which content is similar to the previously existing and abolished orders of the State Customs Service of Ukraine, to name but a few: the Order "On Approval of Forms of Procedural Documents in Cases of Violation of Customs Regulations" No.652 dated May 31, 2012; the Order "On Approval of the Order of Cooperation between the Customs Departments in the Process of Customs Control and Customs Clearance of Goods Containing Items of Intellectual Property Rights" No. 647 dated May 30, 2012; the Order "On Approval of Payment for Performance of Customs Formalities, the Customs Authorities outside the Location of the Customs Authorities or out of Working Hours Set Forth for Them" No. 610 dated May 28, 2012; The Order "On the Places of Delivery of Goods by Transport Vehicles" No. 646 dated May 30, 2012; the Order "On Approval of the Customs Value Declaration Form and Rules for its Filling" No.599 dated May 24, 2012 (the above Order stipulates some new rules as to the form of the customs value declaration submission); the Order "On Approval of the Procedure of Submission and Reviewing Applications, Submission, Suspension, Annulment of Permits for Opening and Operating a Duty Free Shop and Application Form for Opening and Operating a Duty Free Shop" No. 692 dated June 08, 2012; the Order "On Approval of the Procedure of Acceptance, Recall of Preliminary Decision on the Country of Origin, Approval of the Form of Preliminary Decision on the Country of Origin» No. 737 dated June 19, 2012; the Order "On Approval of Procedure for Filling Customs Declarations in the Form of the Single Administrative Document" No.651 dated May 30, 2012; the Order "On Approval of the Regulations on the Temporary Storage Warehouse" No. 613 dated May 28, 2012, № 613; the Order "On Approval of the Order of Work of Department of Customs Duties, Department of Customs Clearance and the Customs Station during the Classification of Goods Passing across the Customs Border of Ukraine" No. 650 dated May 30, 2012, etc.

Settlement agreements with customs authorities

The Ministry of Finance of Ukraine by its Order No. 607 dated June 18, 2012 approved the Model Settlement Agreement on Termination of Proceedings in the Case on Violation of Customs Regulations by Compromise. In accordance with the terms of the said model settlement agreement the person committed the violation of customs rules shall pay to the state budget an amount equal to the amount of fine set forth by the relevant article of the Customs Code of Ukraine or declare the goods being objects of violation in the customs regime of denial in favor of state. The customs authorities, in their turn, will be required to terminate the proceedings on violation of customs rules and clear the goods under the declared customs regime. The possibility to enter into a settlement agreement is provided for in Article 521 of the Customs Code of Ukraine.

Terms for consideration of foreign economic activity entities’ complaints on the illegal denial in customs clearance

The State Customs Service of Ukraine approved the Order "On Consideration of Complaints on Decisions of the Customs Authority on Denial in Customs Clearance" No. 333 dated June 22, 2012. The Order stipulates that customs authorities shall inspect the arguments set forth in the complaints within a period not exceeding 24 hours starting from receipt thereof.

Application of the general financial guarantee

The Ministry of Finance of Ukraine issued the Order "On Approval of the Regulations on the Cases, Conditions and Procedure for Application of the General Financial Guarantee" No.632 dated May 30, 2012. The Order abolishes the Regulations on Authorization of the Bank as Guarantors on Provision of Financial Guarantees to Customs Offices (Order of the State Customs Service of Ukraine No.608 dated August 19, 2004); Regulations on the Provision of Financial Guarantees by Independent Financial Intermediaries to Customs Authorities during the Customs Clearance of Goods imported by Preliminary Customs Cargo Declaration (The Order of State Customs Service of Ukraine No.447 dated July 29, 1998) and establishes rules for application of general financial guarantee. Just to remind: pursuant to Article 309 of the Customs Code of Ukraine general financial guarantee shall be used to secure the payment of customs duties under customs declarations, or controlling documents on the movement of goods which the declarant intends to clear during the year. The accepted general financial guarantee shall be valid within one year on the whole territory of Ukraine.

The Order will come into force on October 19, 2012.

Commentary to Ukrainian classification of goods of foreign economical activity

The State Customs Service of Ukraine approved the Order "On Amending the Commentary to the Ukrainian Classification of Goods for Foreign Economic Activity, approved by the Order of the State Customs Service of Ukraine No. 1561 dated December 30, 2010" No. 373 dated July 18, 2012.  The Order provides for the amendments related to several codes of UCG FEA, to name but a few: 0710 (vegetables), 2207 (ethanol with a concentration of 80 vol. % or more), 2106 90 98 91(processed cheese), etc.

Accounting of subjects of foreign economic activity

On August 31, 2012 the Order of the Ministry of Finance of Ukraine "On the Establishment of Procedure for Accounting of Entities Involved in Transactions with the Goods" No. 634 dated May 30, 2012 entered into force. The Order approved the procedure for accounting the entities conducting transactions with the goods, and the procedure for completing the graphs of an accounting card of such entity. Record cards of subjects of foreign economic activity, issued before the entry into force of the Order, are valid until December 1, 2012. During this period, subjects may apply to the customs office for the submission of record cards of an entity performing operations with the goods. The customs authorities shall register the entities involved in transactions with the goods, giving them a number, which is valid throughout the customs territory of Ukraine. The Order provides for the procedure and the list of necessary documents for the entities to be registered.

Granting and deprivation of the status of "customs warehouse"

The Ministry of Finance of Ukraine approved the Order "On Approval of the Procedure for Granting  the Status of "Customs Warehouse" to Warehouse Places and the Deprivation of Such Status" No.835 dated July 16, 2012. The Order abolished a number of the Orders of the State Customs Service of Ukraine (The Order No.592 dated December 31, 1996; the Order No.792 dated December 4, 1999; the Order No.510 dated November 5, 1996 and others). The Order provides for that the status of the "customs warehouse" shall be granted by the submission of the information about a business entity into the Register of Customs Warehouses of Ukraine. The customs warehouse is a customs control zone. The warehouse keeper may be a resident who has a license for customs brokerage activity. The Order stipulates the list of documents necessary for opening the customs warehouse and submission of information on it into the Register of Customs Warehouses of Ukraine. Within 10 working days of submission of the application with the documents the warehouse shall be inspected, the documents shall be examined and the act shall be executed. Within 3 working days a permit order shall be issued and procedure of exploitation shall be approved. In addition the Order provides for the requirements for customs warehouses, including technical, to the surveillance system of the customs warehouse.

V. AGRICULTURE

State support of agriculture

The Cabinet of Ministers of Ukraine approved the Resolution "On Amending the Order on the Use of Funds Provided by the State Budget for the Financial Support of the Entities of the Agricultural Sector through the Mechanism of Cheaper Loans and Compensation of Lease Payments" No. 640 dated July 11, 2012. The Resolution introduced, among others, the following amendments: (a) the Order shall also apply to loans for agricultural entities provided by foreign banks as well; (b) compensation for the lease payments in 2012 shall be performed at the total amount of up to 30 million UAH (in 2011 – 100 million UAH); (c) the Ministry of Agriculture and Food of Ukraine is the main administrator of budget funds and responsible for performance of the respective budget program; (d) compensation for loans in foreign currency is available at a rate of 7% (previously – 10%) per annum but not exceeding the rate specified in credit agreements; (e) compensation for the percent is provided for loans, including loans for the construction of vegetable and potato warehouseб etc.

VI. PHARMACEUTICALS

Licensing import of pharmaceuticals

The Parliament of Ukraine adopted the Law of Ukraine "On Amending Certain Laws of Ukraine on Licensing the Import of Pharmaceuticals and the Definition of the Term "Active Pharmaceutical Ingredient" No. 5038-VI dated July 04, 2012. The Law provides for the amendments to the Law of Ukraine "On Medicines" and the Law of Ukraine "On Licensing Some Types of Economic Activity" and introduces a completely new approach to import of pharmaceuticals, particularly, starting from March 01, 2013 import of pharmaceuticals shall be subject to licensing.

Under the Law the import of pharmaceuticals is allowed if the following conditions are met: (a) there is the certificate of quality from the manufacturer; (b) importer (or a person representing a manufacturer in Ukraine) obtained a license for import; (c) expiration date of pharmaceuticals imported into the territory of Ukraine shall not be less than half of the period specified by the manufacturer. If the manufacturer has determined period of less than 1 year, or not less than 6 months, provided that the manufacturer has defined a term exceeding 1 year. The licenses for import of pharmaceuticals may be issued only if there are the material and technical base, qualified personnel and the conditions for quality control of pharmaceuticals to be imported into the territory of Ukraine.

As of today, the Ministry of Healthcare of Ukraine is elaborating the relevant license conditions to be mandatory for importers of pharmaceuticals. Notable, according to the Law licensing import of pharmaceuticals will be introduced from March 01, 2013.

Restrictions for employees of medical and pharmaceutical institutions

On July 4, 2012 the Parliament of Ukraine adopted the Law "On Amending Fundamentals of  Legislation of Ukraine on Health Protection regarding Establishing Restrictions for Employees of Medical and Pharmaceutical Institutions during Their Professional Activities” No. 5036-17 dated July 04, 2012. The Fundamentals of Legislation of Ukraine on Health Protection is supplemented by Art. 78-1 providing for that employees of medical and pharmaceutical institutions are not allowed to: (a) receive wrongful benefit from entities manufacturing and/or selling pharmaceuticals or medical devices; (b) receive samples of pharmaceuticals, medical devices for use in professional activities (except under the relevant contracts during clinical studies of pharmaceuticals or medical devices) from entities manufacturing and/or selling pharmaceuticals or medical devices; (c) advertise pharmaceuticals, medical devices; (d) prescribe the pharmaceuticals on the forms that include advertising; indicate the manufacturers of pharmaceuticals.The employees of pharmaceutical institutions are not allowed to provide false information or not to provide information at all on the availability of pharmaceuticals with the same active substance and dosing; conceal information about such pharmaceuticals with a lower price.

Criminal liability for falsified medicines or involvement in falsified medicines circulation

On July 07, 2012 the Parliament of Ukraine adopted the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine regarding Enhancement of Responsibility for Falsification or Circulation of Falsified Medicines" No. 5065-VI. The Law introduces amendments to Criminal Code of Ukraine concerning criminal liability for production, purchase, transportation, sending and storage in the purpose of selling falsified medicines and the deliberate sale of falsified medicine, particularly: the above crimes shall be punished with imprisonment for a period of 3-5 years with the seizure of the falsified medicine, the raw materials and equipment used for their production. Should the above crimes are committed repeatedly or in collusion with a group of persons, or in large-scale, or are resulted in serious, long-term damage to the health or death of a person, the offenders shall be punished with imprisonment for a period of 5-8 years.

Ratification of the MEDICRIME Co nvention

On July 12, 2012 the President of Ukraine signed the Law of Ukraine "On Ratification of the Convention on the Counterfeiting of Medical Products and Similar Crimes Involving Threats to Public HealthNo. 4908-VI (the so-called MEDICRIME Convention adopted by the Council of Europe). The Convention is the first binding international legal instrument that criminalizes the counterfeiting of medical products and similar dangerous conduct and provides a framework for international co-operation on prevention and victim protection. The counterfeiting of medical products as set out in the Convention should not be confused with the issues of intellectual property rights.

Declaration of prices of pharmaceuticals

The Cabinet of Ministers of Ukraine approved the Resolution "On Declaration of Change of Wholesale Prices of Pharmaceuticals and Medical Devices, Bought at the Expense of State and Local Budgets" No. 794 dated August 13, 2012. According to the Resolution, from September 1, 2012, the changes of the wholesale prices excluding VAT and duty to the following goods shall be declared: a) pharmaceuticals included in the list of pharmaceuticals that can be bought by health care institutions, wholly or partially financed from the budget approved by the Resolution of the Cabinet of Ministers of Ukraine No.1071 dated September 5, 1996, except for narcotic and psychotropic drugs and precursors, the active substances, medical gases and medical forms, which are made in pharmacies on prescription and on order of medical and preventive treatment institutions; (b) medical devices, included in the register of medical equipment and medical devices and purchased wholly or partly at the expense of the budget. The health care institutions, wholly or partially financed from the budget, shall buy pharmaceuticals and medical devices at prices not exceeding the level of declared changes of wholesale prices including duty, VAT and limit supply extra charges, marketing and retail extra charges. The wholesale prices, information on which is submitted before September 1, 2012 in the register, shall be deemed to be declared and are valid during the term of the certificate of registration. The Resolution approved the procedure for declaring changes in wholesale prices.

State registration of medical devices

The Ministry of Healthcare of Ukraine approved the Order "On Approval of the List of Medical Products subject to State Registration (Reregistration) in Ukraine" No.478 dated July 02, 2012. The Order abolished the List of medical products which are subject to state registration approved by the Order of the State Inspection of Medical Products of the Ministry of Health of Ukraine No. 51 dated June 05, 2010. The Order approves a new List consisting of three sections:(a) medical products for the prevention, diagnosis, treatment, monitoring or alleviating the patient with the disease, injury, or as compensation for the lack of organ; examination, replacement or change of the structure of organs, tissues or physiological processes, control of fertilization; (b) active and implanted medical products; (c) medical products for diagnosing in vitro.

The ban on advertising of pharmaceuticals

The Ministry of Healthcare of Ukraine approved the Order "On Certain Issues of Ban on Advertising of Pharmaceuticals" No.422 dated June 06, 2012. The Order establishes the criteria for the determination of pharmaceuticals prohibited for advertising. To name but a few: (a) pharmaceuticals used only by prescription; (b) pharmaceuticals containing narcotic, psychotropic substances and precursors; (c) pharmaceuticals that can cause a syndrome of addiction except of those for external use; (d) pharmaceuticals used exclusively for the treatment of women during pregnancy and lactation; (e) pharmaceuticals used exclusively for the treatment of children under 12 years of age, etc.

The list of goods for the purchase and sale of pharmacies

The Ministry of Healthcare of Ukraine approved the Order "On Approval of the List of Goods that Pharmaceutical Institutions and Their Subdivisions are Entitled to Buy and Sell" No. 498 dated July 06, 2012. The Order abolishes the List of goods approved by the Order of the Ministry of Health of Ukraine No. 577 dated November 26, 2004.

In addition to the types of products previously allowed for sale by pharmacies, the new List includes the following products: devices for control and regulation of microclimate; devices for drinking water purification and removable filters and cartridges; baby care items that are not registered as medical products; books on medical issues, pharmacy and healthy lifestyle; special clothing for medicine and pharmacy workers; products for persons with disabilities.

Procedure for calculating the maximum level of wholesale prices of pharmaceuticals for hypertension

The Ministry of Healthcare of Ukraine approved the Order "On Approval of the Order of Calculation Threshold Level of Wholesale Prices of Pharmaceuticals for the Treatment of Persons with Hypertension and Comparative (Reference) Prices for Such Pharmaceuticals" No. 394 dated May 29, 2012. The Order stipulates that the register of maximum level of wholesale and comparative (reference) prices of such pharmaceuticals is kept in paper form and published on the web-site of the Ministry of Healthcare of Ukraine (www.moz.gov.ua). The Order regulates the methods of calculating the maximum level of wholesale and comparative (reference) prices of these pharmaceuticals.

Inspection  before issuing a license for production of pharmaceuticals

The Ministry of Health of Ukraine approved the Order "On Approval of the Procedure for Inspection  before Issuing a License for Conducting Business Activities on the Production of Pharmaceuticals, Wholesale, Retail Trade of Pharmaceuticals" No. 513 dated July 11, 2012.  The inspection shall be conducted by the State Service on Pharmaceuticals of Ukraine and/or its territorial departments. The inspection shall be carried out no later than the 6th business day from the day of receipt of application. The duration of the inspection shall be no more than 3 business days. The business entity has the right to be present during the inspection; require the non-disclosure of information that is a commercial secret; receive one copy of the inspection act; provide a written explanation, comments or objections to the act; challenge actions and decisions of the State Service on Pharmaceuticals of Ukraine, its territorial departments and officials. The inspection shall concern the material and technical basis, staff qualifications, terms of control over the quality of pharmaceuticals.

The Order provides for the specific requirements to the inspections of business entities carrying out industrial production of pharmaceuticals and production in pharmacies, wholesale, retail trade of pharmaceuticals. If the business entity refuses to take part in inspection the State Service on Pharmaceuticals of Ukraine shall take the decision to leave the application for a license without consideration.

VII. OTHERS

USA – Ukraine working group on removal of obstacles in trade relations

On July 31, 2012 on the fourth meeting of the USA-Ukraine Trade and Investment Council in Washington the representatives of Ukraine and the USA discussed trade issues, the state of and prospects for trade and economic cooperation between Ukraine and the United States, and agreed on the creation of a working group on trade issues. The purpose of activity of this working group will be the removal of obstacles in trade relations between two countries. The representatives of Ukraine stated that in this context it would be important to reach a compromise regarding the termination of anti-dumping measures against the Ukrainian products. 

State registration of foreign investments

On June 14, 2012 the President of Ukraine signed the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine concerning State Registration of Foreign InvestmentsNo.4835-VI dated May 24, 2012 with the effect from December 16, 2012. The Law provides for that foreign investments shall be registered in any time (currently – within 3 working days after actual making of investments) within seven days from the date of submission of the relevant documents for investments registration or its cancellation.

Requirements for the production of motor fuels containing bio-components

The Parliament of Ukraine adopted the Law of Ukraine "On Amending Certain Laws of Ukraine Concerning the Production and Use of Motor Fuels Containing Bio-components" No. 4970-VI dated June 19, 2012. The Law amends the Law "On Alternative Fuels" and provides for gradual increase of a certain percentage of production and use of biofuels, namely:

in 2013 – recommended content of not less than 5% (by volume);

in 2014-2015 – required content of not less than 5% (by volume);

from 2016 – required content of not less than 7% (by volume).

Amendments to import and registration of vehicles

On July 08, 2012 the Law "On Amending the Law of Ukraine "On Certain Issues of Import to the Customs Territory of Ukraine and the Registration of Vehicles" (Concerning Wheeled Vehicles)" No.5177-VI came into force. The Law provides for the gradual implementation of international environmental requirements for wheeled vehicles and defines the procedure for determination of environmental standards, test methods, procedures of maintaining an appropriate environmental level of wheeled vehicles. The amendments relate to truck tractors, buses and cars – codes under UCG FEA 8701 20, 8702 and 8703, as well as trucks and vehicles of special purpose – codes under UCG FEA 8704 and 8705.

The vehicles, both produced in Ukraine and imported into the customs territory of Ukraine, may enter into the customs territory of Ukraine for home use and first registration in Ukraine, subject to compliance with environmental requirements:

a) not below the "Euro-3" – from January 1, 2013, except for vehicles produced in Ukraine or imported into the customs territory of Ukraine before the introduction of environmental standards is below the "Euro-3" as required;

b) not below the "Euro 4" – from January 1, 2014, except for vehicles produced in Ukraine or imported into the customs territory of Ukraine before the introduction of environmental standards is below the "Euro-4" as required;

c) not below the "Euro 5" – from January 1, 2016, except for vehicles produced in Ukraine or imported into the customs territory of Ukraine to December 31, 2015 inclusive;

d) not below the "Euro 6" – from January 1, 2018, except for vehicles produced in Ukraine or imported into the customs territory of Ukraine to December 31, 2017 inclusive".

Control over compliance with legislation on personal data protection

The Ministry of Justice of Ukraine adopted the Order "On Approval of the Procedure of the State Control over Compliance with Legislation on Protection of Personal Data by the State Service of Ukraine for Personal Data Protection" No. 947/5 dated June 22, 2012. The Order regulates the mechanisms of the state control, as well as consideration of results of inspection. Control is performed by means of inspections of individuals, individuals-entrepreneurs, enterprises, institutions and organizations, state authorities, that are the controllers and/or processors of personal data base. The inspections may be scheduled and unscheduled, visiting and remote. The inspection is conducted on the basis of the relevant order of the State Service of Ukraine for Personal Data Protection. The term of the inspection shall not exceed 10 working days. The extension of term may be for no more than 5 working days. The scheduled inspection shall be carried out for no more than once in 5 years. The Order provides for the documents necessary for submission for the inspections and the reasons for conduction of unscheduled inspection.

Technical regulations on food labeling rules

Ministry of Economic Development and Trade of Ukraine approved the Order "On Amending the Order of the State Committee for Technical Regulation and Consumer Policy of Ukraine No.487 dated October 28, 2010" No. 639 dated May 28, 2012. The Order introduced, among others, the following amendments in the technical regulation on food labeling rules: (a) the requirements of the Order shall not be applied to the labeling of alcoholic beverages; (b) it is forbidden not only to specify, but also refer to the product characteristics contributing the prevention, healing and treatment of any disease; (c) the indication of quantity of separate components (class of ingredients) in the labeling is mandatory only in the precisely defined cases e.g. when the name of a product is associated with the name of ingredients; (d) the labeling shall indicate the information on genetically modified organisms in the food product; (e) the Order provides for the requirement on mandatory marking "grown in aquaculture" nearby the name of the fish and seafood grown in vitro, etc.

Business entities are allowed to use previously made packaging materials and labels within 18 months from the date of its entry into force. Previously made products, packaging materials and labels entered into circulation not later than 18 months from the date of entry into force of the Order, shall remain in circulation until the expiration date of the respective products.

 

|1|http://iportal.rada.gov.ua/news/Novyny/Povidomlennya/66083.html

|2|http://www.kyivpost.com/content/ukraine/yemen-on-track-for-wto-entry-after-ukraine-deal.html

|3|http://www.wto.org/english/news_e/pres12_e/pr668_e.htm

|5|http://trade.ec.europa.eu/doclib/docs/2012/july/tradoc_149665.def.and.term.en.L174-2012.pdf

|6|http://economics.unian.net/ukr/detail/133713

|7|http://www.me.gov.ua/control/uk/publish/article?art_id=186476

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