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26 September 2014

International Trade News. June-August 2014

I. WTO NEWS

The WTO composed a Panel in the dispute between Japan and Ukraine over safeguard measures on passenger cars|1|

On 20 June 2014 the WTO Director General Roberto Azevêdo composed a panel in the dispute Ukraine — Definitive Safeguard Measures on Certain Passenger Cars (DS468). Members of the panel are Mr. William Davey (chairperson) who used to be the director of the Legal Affairs Division of the WTO (1995-1999), at present teaching legal courses at the University of Illinois College of Law, Mr. Felipe Hees who served as the member of the Brazil mission to the WTO, Mr. Chang Fa Lo, who served at different posts in the government of Taiwan coordinating trade issues and is a Member of the WTO Permanent Group of Experts.

Just to remind: the WTO dispute settlement procedure was started upon the request of Japan. The EU, India, Korea, Russia and Turkey reserved their third-party rights. Subsequently, Australia and the United States did so as well. The dispute pertains to the safeguard duties imposed by Ukrainian government and levied from passenger cars in the amounts from 4,31% to 8,63% depending on the engine capacity.

The level of duties was liberalized this year according to Article 7.4 of the WTO Agreement on Safeguards, the last revision was made in accordance with the Decision of the Interdepartmental Commission on International Trade “On Liberalization of Safeguard Measures for Importation of Passenger Cars in Ukraine Irrespective of the Country of Origin and Exportation” No.СП-306/2014/4423-06 which entered into force on 28 March 2014 and reduced the duties starting from 14 April 2014. It is expected that the duties will be reduced again next year but will remain in force at least until 14 April 2016.

Yemen became the 160th WTO member|2|

On 26 June 2014, Yemen became the 160th WTO member. This event was prefaced by 13-year negotiation process of its accession. On 27 May 2014, Yemen deposited the Instrument of Acceptance with Director-General Roberto Azevêdo confirming its membership terms. Upon welcoming Yemen as a new WTO member Roberto Azevêdo stated that with Yemen’s accession 97.1% of the global economy now falls under the rules-based multilateral trading system.

Russia – EU confrontation in the WTO

The EU requested establishment of the panel in case Russian Federation — Measures on the Importation of Live Pigs, Pork and Other Pig Products from the European Union (DS 475)The EU authorities claimed that Russia had maintained an EU-wide restriction against imports of live pigs, pork and other pig products since January 2014 due to several cases of African swine fever (ASF) in Lithuania and Poland|3|. In the opinion of the EU this constitutes a violation of Sanitary and Phytosanitary Measures (SPS) Agreement and the General Agreement on Tariffs and Trade (GATT) 1994 due to the fact that there was no scientific reason behind such ban. It was also noted that Russia had itself suffered numerous outbreaks of ASF but it did not apply similar measures in its own territory, thereby discriminating EU products. Furthermore, EU claimed that restrictions imposed upon European products were higher than those imposed upon products imported from certain neighbouring countries that had also reported cases of ASF. Consultations with Russia failed to resolve the matter, hence EU requested establishment of the panel. The Panel in this case wasestablished on 22 July 2014|4|.

The Russian Federation, in turn, requested the establishment of the panel in the case European Union — Cost Adjustment Methodologies and Certain Anti-Dumping Measures on Imports from Russia (DS474). In Russia’s opinion, the measures were contrary to the requirements of certain WTO Agreements.The claims concerned the rejection by the European investigating authorities of cost and price information including the data on energy inputs as part of manufacturing costs. The parties to the dispute held consultations in February and April 2014 but failed to find a mutually agreed solution. At the WTO DSB meeting held on 18 June 2014 Russia requested to establish the panel, which was established on 22 July 2014|5|.

II. TRADE DEFENSE REMEDIES AND TRADE BARRIERS

Antidumping investigation against imports of incandescent electric lamps originating from the Kyrgyz Republic was initiated

According to the Notification of 2 July 2014, the Interdepartmental Commission on International Trade issued a Decision “On the Initiation and Conducting the Antidumping Investigation Related to Import of Incandescent Electric Lamps of General Use Originating from the Kyrgyz Republic into Ukraine” No. АД-311/2014/4421-06, by which the Commission  commenced the antidumping investigation against the import of incandescent electric lamps of general use not exceeding the power of 200 Wt and exceeding the voltage of 100 V (code 8539 22 90 10). The investigation was initiated at the complaint of PJSC “Iskra”.

The review of antidumping measures on imports of float glass originating from Russia, Belarus and Poland was initiated

Pursuant to the Notification of 2 July 2014, the Interdepartmental Commission on International Trade issued a Decision “On the Initiation and Conducting the Interim Review of Antidumping Measures Related to Import of Float Glass Plates (Thermally Polished Glass) Originating from the Russian Federation, the Republic of Poland and the Republic of Belarus” No. АД-312/2014/4421-06, by which the Commission commencedthe interim review of antidumping measures against the float glass plates (1) having the width from 3 mm to 12 mm originating from the Russian Federation, (2) having the width from 3 mm to 4,5 mm originating from the Republic of Poland and (3) having the width from 3,5 mm to 12 mm originating from the Republic of Belarus (codes 7005 29 25 90, 7005 29 35 90 and 7005 29 80 90).

Current antidumping measures in the form of antidumping duties were imposed by the Decision of the Commission No. АД-255/2011/4402-28 (Notification of 28 April 2012).  The duties were set at the level from 1,39% to 104,88% depending on the exporting country, qualities of the glass and the producer. Review was initiated at the request of  PJSC “Lysychansky sklozavod “Proletary” due to 7,8%  increase in  imports and 12,3% reduction of price.

Antidumping investigation against imports of rubber-textile belt track from Russia was terminated without antidumping measures

According to the Notification of 8 July 2014, the Interdepartmental Commission on International Trade issued a Decision “On Termination of the Investigation Related to Import of the Rubber-Textile Belt Track from the Russian Federation into Ukraine” No. АД-313/2014/4421-06, which terminated the respectiveantidumping investigation without antidumping measures. The investigation was started at the request of LLC “Erlite” according to the Decision of the Commission No. АД-304/2013/4423-06 (Notification of 28 November 2013) and related to the rubber-textile belt tracks of 800 to 1200 mm width (code 4010 12 00 10). Later LLC “Erlite” requested the Commission to terminate this investigation.

Antidumping measures against imports of medium density fiberboards from Belarus to Ukraine were continued

According to the Notification of 8 July 2014 the Interdepartmental Commission on International Trade issued a Decision “On Continuation of the Antidumping Measures Related to Import of Medium Density Fiberboards from Belarus to Ukraine” No. АД-314/2014/4421-06, bywhich the antidumping measures related to medium density fiberboards (code 4411 92 10 00)were continued for the following 5 years with the duty set at the level of 68,75%. The review of antidumping measures was initiated at the request of LLC “Uniplyt” due to their expiry and the existence of the dumped imports in the second half of 2012 – first half of 2013. Antidumping measures against the medium density fiberboards originating from the Republic of Belarus were imposed by the Decision of the Commission of 12 July 2002 No. АД-45/2002/52-61and prolonged by the Decision of the Commission of 13 June 2008 No. АД-179/2008/144-44 and of 02 July 2013 No. АД-295/2013/4423-06.

The antidumping measures against imports of ammonium nitrate from Russia to Ukraine were continued

According to the Notification of 8 July 2014 the Interdepartmental Commission on International Trade issued a Decision “On Amendment and Continuation of Antidumping Measures Related to Import of Ammonium Nitrate (Ammonium Saltpeter) Originating from the Russian Federation into Ukraine” No. АД-315/2014/4421-06, by which the antidumping measures against ammonium nitrate (ammonium  saltpeter) (code 3102 30 90 00) were continued for the following 5 years. The antidumping duties were set at the following level: for exporter PJSC “Drogobuzh” – 20,51%, for exporter PJSC “MHK “EuroChem” – 36,03%, for other exporters and for the Russian Federation in general – 36,03%. The review was initiated at the request of Ukrainian producers PJSC “Conzern “Stirol”, PrJSC “Severodonetske obyednannya “Azot”, PJSC “Rivneazot” and PJSC “Azot”. Original antidumping measures were imposed by the Decision of the Commission of 21 May 2008 No. АД-176/2008/143-47, the duties were set at the level of 9,76% for exporter PJSC “Drogobuzh”, 10,78%for exporter PJSC “MHK EuroChem” and 11,91%for other exporters.

The antidumping investigation on the import of stainless pipes from China was continued

According to the Notification of 25 July 2014, the Interdepartmental Commission on International Trade issued a Decision “On Continuation of the Period of Antidumping Investigation Related to Import of Stainless Seamless Pipes Originating from the People’s Republic of China into Ukraine” No. АД-318/2014/4421-06 which continued the period of the respective antidumping investigation up to 16 months. The investigation was initiated at the complaint of the companies’ association “Ukrtrubprom” according to the Decision of the Commission No. АД-300/2013/4423-06(Notification of 27 July 2013) and is conducted in respect of pipes and hollow structural seamless sections from ferrous metals except from cast iron (codes 7304 41 00 90and 7304 41 00 90).

The expiration of certain antidumping measures

On 7 July 2014, the antidumping measures on imports of lactic acid from the People’s Republic of China imposed by the Decision of the Commission of 28 May 2009 No. АД-203/2009/4402-36 and antidumping measures on imports of piled textile fabric (including long-piled fabric) and terrycloth originating from the People’s Republic of China and the Republic of Korea into Ukraine imposed by the Decision of the Commission of 28 May 2009 No. АД-204/2009/4402-35 have expired.

Prohibition on import of certain goods origination from Ukraine into the Russian Federation

From 16 June 2014, according to the Letter of RosSelkhoznadzor|Russian authority responsible for sanitary and phytosanitary control| No. ФС-АС-3/9746, imports of food potato into the territory of Russiafrom Ukraine were restricted|6|. The Russian authorities argue that this step was the result of the repeated detection of potato-root eelworm, which is a quarantine object in the Russian Federation, and of the necessity of guaranteeing phytosanitary security on the territory of the Russian Federation.

Then the Russian Federation prohibited imports of milk products from 28 July 2014|7|. Representatives of Rosselkhoznadzor stated that the reason behind such decision was the repeated violation of Russian sanitary requirements by Ukrainian producers, in particular the presence of antibiotics in Ukrainian goods. Previously similar prohibitions of Ukrainian milk products concerned only several producers, however from 28 July 2014 all milk and so called ‘cheese containing’ products are subject to prohibition.

Furthermore, from 29 July 2014 imports of canned fruit and vegetable products and canned fish|8| into Russia from Ukraine were banned. These restrictive measures were introduced due to the alleged violations of Russian consumer protection legislation by Ukrainian producers. Maize flour, sunflower, soy beans and protein meal|9| are also under prohibition from 1 August 2014. The ban is also expected to cover yellow onion.

Imports of agricultural products and food from certain countries to Russia was banned

According to the Order of the President of the Russian Federation “On Application of Certain Safeguard Economic Measures for Protection of Safety of the Russian Federation”|10| No. 560 of 6 August 2014 Russia imposed a ban on importation into its territory of certain agricultural products, raw materials and food, originating from the countries which had imposed economic sanctions against Russian individuals or legal entities or joined such sanctions.

The list of goods prohibited for importation into the territory of the Russian Federation was adopted by the Regulation of the Government of the Russian Federation “On the measures for realization of the Order of the President of the Russian Federation of 6 August 2014 No. 560 “On Application of Certain Safeguard Economic Measures for Protection of Security of the Russian Federation”|11| No.778 of 7 August 2014. The list of such goods includes meat, milk products, vegetables, roots, fruits, nuts, fish, seafood and sausages from the USA, the EU, Canada, Australia and Norway. The prohibition for importation was introduced for the period of one year and does not extend to baby food and alcoholic beverages.

According to the statements of Russian officials such decision is the forced step in response to the economic sanctions against Russia. At the same time a number of experts agree that the ban on import to the Russian Federation is a violation of its WTO obligations, in particular under GATT Article I and Article III.

Trade confrontation Ukraine – Belarus

Trade relations between Ukraine and Belarus in May – August 2014 were marked with trade confrontation. The Decision of the Cabinet of Ministers of the Republic of Belarus of 18 April 2014 No. 365 imposed temporary licensing for beer imported from members of the CIS Free Trade Agreement, except for the countries of the Customs Union, from 1 May to 31 December 2014|12|. Later this list was extended according to the Decision of the Cabinet of Ministers of the Republic of Belarus of 16 May 2014 No. 469. Thus, licensing procedure was made mandatory from 1 June 2014 for confectionary, macaroni products, flat glass, glassware and cement.

In turn, the Interdepartmental Commission on International Trade adopted two Decisions: “On Imposition of Safeguard Duty for Imports of Goods Originating from the Republic of Belarus to Ukraine in response to Discriminatory and Unfriendly Actions of the Republic of Belarus in respect of Confectionary” No. 316/2014/4421-06 and “On Imposition of Safeguard Duty for Imports of Goods Originating from the Republic of Belarus to Ukraine in response to Discriminatory and Unfriendly Actions of the Republic of Belarus in respect of Malt Beer and Non-Alcoholic Beverages” No. 317/2014/4421-06 (Notifications of 16 July 2014)|13|. The relevant Decisions imposed safeguard duties for confectionary, milk products, electric incandescent lamps and fertilizers originating from the Republic of Belarus in the amount of 55,29%, and for malt beer, rubber tires and refrigerators originating from Belarus in the amount of 60,05%. The Decisions entered into force on 27 July 2014. According to the Decisions the duties had to be levied until 31 December 2016.

However, after joint consultations between Ukraine and Belarus the parties have reached a compromise. According to the Decision of the Cabinet of Minister of the Republic of Belarus of 24 July 2014 No. 719 Belarus cancelled licensing for the imports of cement, glass, beer, certain kinds of macaroni products and confectionary for its partners within the CIS free trade area|14|. In turn, Ukraine suspended the previously imposed duties for Belorussian goods. The relevant Notification was published on 8 August 2014 and entered into force from 19 August 2014. It provides for the aforementioned Decisions of the Interdepartmental Commission on International Trade No. 316/2014/4421-06 and No. 317/2014/4421-06 of 1 July 2014 to be suspended and the duties temporarily not to be levied. However, the legal force of the Decisions may be reinstated in case of discriminatory or unfriendly actions of the Republic of Belarus.

The EU Council imposed restrictions on imports from Crimea

On 25 June 2014, the EU Council Regulation No. 692/2014|15| entered into force. The Regulation provides for the prohibition of imports of goods originating from Crimea and Sevastopol into the territory of the EU. The prohibition also relates to direct or indirect financing of supplies of such goods or insurance services. The contracts concluded before 25 June 2014 did not fall under the prohibition, supplies of goods under such contracts were possible until 26 September 2014. The only way to supply goods from Crimea to EU is the procurement of the Ukrainian certificate of origin from the authorized Ukrainian bodies.

In addition, on 31 July 2014 the new sanctions against Crimea entered into force. In particular, new sanctions provide for the restrictions on credits and investments for European companies into the energy sector, transport, infrastructure, extraction of minerals in Crimea. Furthermore, intermediary services in transactions between the Crimean companies and third (non-EU) countries, transit of goods for such countries and technical cooperation in Crimean projects were also banned. In addition, the list of Crimean goods prohibited for importation was supplemented with 250 new trade positions which include the equipment for extraction of minerals and minerals with hydrocarbons.

III. REGIONAL TRADE LIBERALIZATION

Ukraine and EU have signed the economic part of the Association Agreement

On 27 June 2014, Ukraine and the European Union signed the economic part of the Ukraine – European Union Association Agreement, political part of which had been signed on 21 March 2014. In the same day Association Agreements were signed on the part of the EU with Georgia and Moldova. According to Title IV of the Agreement, EU and Ukraine create the free trade zone and nullify or impair customs duties for certain kinds of goods, while some goods enjoy zero duties within the customs quotas. These measures are expected to make access to the European market for Ukrainian goods easier as well asmutually simplify trade conditions. Furthermore, except from trade matters Agreement provides harmonization obligations in pursue of which Ukraine is obliged to harmonize its legislation with the legislation of the European Union in a large number of spheres, in particular in justice, security, finance, etc.

Association Agreement in details

The process of harmonization of Ukrainian legislation with the EU legislation is going ahead

Upon signature of the Association Agreement, Ukraine started the process of harmonization of Ukrainian legislation with the EU standards, in particular, in the spheres, reformation of which is the key condition to get access for Ukrainian goods to the European market. One of the priorities is the system of safety and quality control over agricultural and food products because Ukraine has a chance to fully realize its export potential only if its goods fully comply with European standards.

On 14 August2014, the Ukrainian Parliament adopted the Law “On Amending Certain Legislative Acts of Ukraine on Identification and Registration of Animals” No.1648-VII|16|. The Law stipulates the introduction of mandatory identification and registration of animals, kept and bred for household consumption. This step will allow detecting and controlling the disease incidence, establishing the owner of an animal and the location of animals, which, in turn, will increase the quality of food. Furthermore, it is stipulated that legal entities will obtain a single identification number. Failure to register an animal will be regarded as an administrative offence under the Ukrainian legislation.

On 22 July 2014, the Ukrainian Parliament adopted in the first reading the Draft Law “On By-products of Animal Origin not Intended for Human Consumption”No.4055а|17|, which was submitted to the Parliament by the Cabinet of Ministers. The Draft Law provides for regulation of the state policy in the sphere of management of by-products of animal origin and defines the main requirements to minimize the risks for human and animal health. This draft Law will harmonize the Ukrainian legislation with the EU standards in the part of animal by-products management, in particular with the Regulation 1069/2009and Regulation 142/2011.

On 3 June 2014, the Ukrainian Parliament adopted in the first reading the Draft Law “On Electronic Commerce” No. 2306а|18|. This Law will govern the conclusion of civil law contracts in electronic form which in fact will be made equal to paper form, and the document in electronic form will be considered as due evidence in the court. Besides, it will govern the rules of sale and purchase in the Internet, such transactions will be made in two steps using the one time user identification code, the procedure which is prescribed by the EU rules of electronic commerce. Buyers and sellers in the Internet will enjoy the relevant rights and obligations provided by the effective legislation, in particular those in the spherethe consumers’ rights protection. This draft Law was developed with the assistance of the European experts and representatives of business communities and is grounded on the provisions of the Directive 2000/31/EUOn Certain Legal Aspects of Information Society Services, in Particular Electronic Commerce, in the Internal Market”. According to the statements of the Internet trade market players, adoption of this Law will promote trade in the Internet and enhance loyalty of users to electronic agreements.

Trade confrontation:Russia against Moldova and Georgia

The Russian Federation imposed import restrictions against Moldova which relate to fruits, canned fruits and vegetables, meat and wine. It is planned to impose duties upon certain other goods|19|. Such decision is explained by the domestic market protection after Moldova signed the Association Agreement with the EU. However, the Russian Federation terminated the earlier trade restrictions|20| and granted the Georgian agricultural products access to the market of Russia from 9 July 2014. However, on 30 July 2014 the Draft Regulation of the Government of the Russian Federation on Termination of the Free Trade Area Between the Russian Federation and Georgia was published.

Russia, Kazakhstan and Belarus signed the Agreement on the Eurasian Union

On 29 May 2014,the Presidents of the Russian Federation, Kazakhstan and Belarus signed the Agreement on the Eurasian Economic Union|21|. It is expected that the document will enter into force on 1 January 2015 and Armenia will join the three countries in the nearest future.

According to the Agreement the countries of the future union guarantee free movement of goods, services, capital and labor force, and will pursue common policy in key economic spheres – energy, industry, agriculture, transport. This will complete formation of the largest single market on the territory of CIS.

Just to remind:the Agreement had been developing since November 2011, when the Presidents of three above countries adopted the Declaration of Eurasian Economic Integration.

IV. PHARMACEUTICALS

Mandatory application of technical regulations for medical devices is postponed until 2015

On 1 July 2014 the Cabinet of Ministers of Ukraine adopted the Regulation “On Amending Certain Regulations of the Cabinet of Ministers of Ukraine” No. 215|22|. According to this Regulation mandatory application of technical regulations for medical devices is postponed until the third quarter of 2015. The ministerial act concerns regulations adopted by the Regulations of the Cabinet of Ministers &l dquo;On Adoption of the Technical Regulation for Medical Devices” No. 753“On Adoption of the Technical Regulation for In Vitro Diagnostics Medical Devices” No. 754“On Adoption of the Technical Regulation for the Active Implantable Medical Devices” No. 755 dated 2 October 2014. Earlier it was expected that these technical regulations will become mandatory from the third quarter of 2014.

Mandatory testing during re-registration of medicinal products was terminated

On 7 July 2014, the Ministry of Health of Ukraine adopted the Order “On Amending the Rules of Expertise of Registration Materials of Medicinal Products Submitted for State Registration (Re?registration) and Expertise of Materials for Amending the Registration Materials During the Term of Registration Certificate”|23| No. 470. According to this order, additional mandatory testing for verification of quality of medicinal products during their re-registration is terminated. This act entered into force from the day of its publication.

V. AGRICULTURE

The Parliament adopted the draft amendments to the Laws on food products

On 22 July 2014 the Ukrainian Parliament adopted the Law “On Amending Certain Legislative Acts of Ukraine on Food Products” No. 1602-VII |24|. Development of the new legislative act in the sphere of safety and quality of food products which would comply with the standards of the European legislation had for a long time been one of the key requirements to improve the quality of goods in Ukraine and give Ukrainian producers access to the European markets. Among drawbacks of the effective legislation the experts named overlapping of functions and powers of state bodies, high level of corruption in the system of control over the quality of food, high corporate compliance expenses, existence of excessive approval procedures and impossibility to trace food products.

The new Law made amendments to certain legal acts in order to create transparent conditions for commercial activity and reduce the level of corruption. Its key achievement is reformation of the system of state control over the safety of food products in line with the principle “from the farm to the fork” based on HACCP procedures. Besides, this Law provides more specific definitions outlines different kinds of offences and punishments, stipulates cancellation of approval documents and procedures absent in EU, introduces traceability of the supply chains and  the European principles of GMO regulation, in particular, in the part of registration of GMO sources instead of products produced from them. According to the new Law the single state body will be created to exercise effective control over the whole supply chain according to the system “from the farm to the fork” as well as control in the spheres of animal health and well-being, veterinary medicine, animals identification and registration, safety of food and feed products, health and protection of plants and by-products of animal origin.

This Law will help to reduce state expenses to maintenance of the control system over the safety of food products as well as corporate expenses for compliance with the administrative requirements, being one of the key Laws in the sphere of harmonization of Ukrainian rules with the EU legislation. Its adoption will promote the quality of Ukrainian food products, help them to receive access to the European markets and grant Ukraine the possibility to use the EU export quotas in full. The Law will enter into force one year after its publication and HACCP system will become mandatory for Ukrainian companies 3 years later.

VI. CUSTOMS RELATED ISSUES

The Parliament adopted the new Law to regulate tax and customs status of Crimea

On 14 August 2014,the Ukrainian Parliament adopted in the second reading and in general the Law “On Tax and Customs Control in the Free Economic Zone of Crimea and Peculiarities of Economic Activity on the Temporarily Occupied Territory of Ukraine” (Draft Law No. 4032a)|25|. According to this Law the free economic zone is created on the territory of the Autonomous Republic of Crimea and the city of Sevastopol for the period of 10 years with special tax and customs regimes. The free economic zone includes the whole territory of Crimea except for the territorial sea, continental shelf and air space.

The free economic zone will be governed by the Managing Company of the free economic zone of Crimea which will belong to state property. No general public taxes and charges will be levied on the territory of Crimea, individuals and legal entities having legal address in Crimea for the tax purposes will be regarded as non?residents. Besides, individuals having tax address in the territory of Ukraine will be obliged to register their dwellings in Crimea with the tax authorities.

The Law prescribes that supply of goods through the administrative border of the Crimean free economic zone shall be made in compliance with all customs procedures in the relevant customs control zones. At the same time, goods produced, transformed or being in free circulation at the temporarily occupied territory of Ukraine before the adoption of the Law of Ukraine “On Guaranteeing the Rights and Freedoms of Citizens and Legal Regime at the Temporarily Occupied Territory of Ukraine” No. 1207-VII of 15.07.2014 are considered to be goods of Ukrainian origin which may be freely transferred to the other territory of Ukraine until 1 January 2015 without application of the of tariff or non-tariff measures. The Cabinet of Ministers will have the right to impose restrictions upon the supply of any goods, works or services from the Crimean territory to the other territory of Ukraine.

In addition, the Law regulates certain issues of banking and payment systems activity, the rules of movement of individuals into the territory of Crimea, the rules of operations with the objects of private, public or municipal property. The Law became effective as of 27 September 2014 (the Law No1636-VII).

Personal protective equipment, medicinal products and medical devices for the anti-terrorist operation have been exempted from the import duty

On 1 July 2014,the Ukrainian Parliament has adopted the Law of Ukraine “On Amending the Customs Code and Certain Laws of Ukraine on Importation of the Personal Protective Equipment and Medicinal Products” No. 1560-VII|26|. According to this Law at the time of anti-terrorist operation and martial law certain categories of goods are exempted from import duties, among them special personal protective equipment manufactured in compliance with military standards (helmets, cap comforters, dampers, bullet-proof vests, threads for manufacturing of bullet-proof vests) which are intended for needs of police units, Military forces of Ukraine and other military units created under the laws of Ukraine as well as other bodies fighting terrorism according to the law.

The import duty will also be not levied on medicinal products and medical products intended for consumption by health protection bodies and participants of the anti-terrorist operation for medical assistance to individuals which in the period of anti-terrorist operation and/or martial law were wounded, contused or hurt in any other way. The simplified approval procedure will be used for importation of such medicinal products and medical products. Besides, medicinal products and medical products without state registration and permissive documents can be imported according to the list and in the amounts fixed by the Cabinet of Ministers of Ukraine.

VII. OTHER

Ukrainian Parliament adopted the new Law “On Standardization”

On 5 June 2014, the Ukrainian Parliament adopted the Law of Ukraine “On Standardization” No. 1315?VII|27| which will enter into force on 3 January 2015.

The Law provides for creation of the single national standardization body which will be governed by state bodies as well as educational bodies, associations of commercial entities, non-governmental organizations and trade unions. Such body will be responsible for organization and coordination of activity in the sphere of standardization, adoption and termination of public standards, termination of activity of technical standardization committees, cooperation with other international and foreign standardization bodies.

Furthermore, the mere procedure of standardization will be changed. The Law stipulates two levels of standardization: national standards adopted by the national standardization body and standards and technical conditions adopted by the manufacturers. Sectoral standardization will be abolished; central executive bodies will have the right to transfer sectoral standards to the national level during 15 years. The Law terminates the procedure of approval of national standards by public bodies as well as state registration of technical conditions. Application of public standards according to the Law will be voluntary except when their mandatory application will be prescribed by legal acts.

Ukrainian Parliament adopted the Law “On sanctions”

On 14 August 2014, the Ukrainian Parliament adopted the Law “On sanctions” No. 1644-VII|28| which provides for more than 25 kinds of restrictions which may be imposed against foreign states, legal entities and individuals conducting terrorist or any other activity which threats Ukrainian sovereignty and territorial integrity.

Sanctions include assets freeze, restrictions on trade, economic and financial transactions, blocking of the transit of resources, ban on export of capital, etc. The suggestion to introduce the sanctions is made by the Ukrainian Parliament, the President of Ukraine, Cabinet of Ministers of Ukraine, the National Bank of Ukraine and the Security Service of Ukraine. The decision as to the introduction of sanctions is made by the National Security and Defense Council of Ukraine. Finally, the decision is enacted by the decision of the President of Ukraine and is subject to approval of the Parliament of Ukraine (in case of sectoral sanctions). In case of personal sanctions, the Security Council’s decision is enacted by the President’s of Ukraine decree, which renders the Council’s decision effective.

The Law “On sanctions” in details

For more details, please contact Nataliya Mykolska.

 

|1|https://docs.wto.org/dol2fe/Pages/FE_Search/DDFDocuments/125417/q/WT/DS/468-6.pdf

|28|http://zakon1.rada.gov.ua/laws/show/1644-vii

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