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6 March 2013

International Trade News. January-February 2013

I. UKRAINE & WTO

EU Council instructed European Commission to start negotiations with Ukraine re re-negotiation of Ukraine’s tariff obligations|1|

At the meeting of the EU Council on Economic and Financial Affairs in Brussels on 12 February 2013 the EU Council has instructed the European Commission to start the talks with Kyiv in connection with Ukraine's application to the WTO for the revision of its tariff obligations.

The Decision states that "the Council adopted a decision authorizing the Commission to start negotiations with Ukraine, under Article XVIII of the 1994 General Agreement on Tariffs and Trade, to obtain full compensation for any modification of tariff concessions by Ukraine".

Just to remind: On 14 September 2012, Ukraine sent a document marked "secret" to members of the WTO stating that it intends to raise the limit on the tariffs on 371 goods. Ukrainian initiative is based under Article XXVIII of the GATT.

II. TRADE DEFENSE REMEDIES

Extension of anti-dumping investigation related to import into Ukraine of citric acid from China

On 4 January 2013 the Notification of the Interdepartmental Commission on International Trade “On Extension of Anti-dumping Investigation related to Import into Ukraine of Citric Acid (Monohytrate) Originating from the People's Republic of China was published in the newspaper "Yryadovyy Kuryer" No.2. According to the Notification, the above anti-dumping investigation shall be extended for 3 months, i.e. till the end of April 2013.

III. CUSTOMS RELATED ISSUES

Licensing of foreign economic activity and certain customs issues

On 18 January 2013 the Draft Law “On Amendments to Certain Laws of Ukraine on Implementation of the State Policy in Licensing the Foreign Economic Activity and Certain Issues of Customs Clearance of Export and Import of Certain Goods” was published on the official website of the Ministry of Economic Development and Trade of Ukraine|2|.

The Draft Law provides for amendments to certain Laws of Ukraine. In particular, Article 16 of the Law “On Foreign Economic Activity” No. 959-XII dated 16 April 1991 shall be supplemented by the provision that license for foreign economic activity shall be reissued in case of changes to the foreign economic contract that was the basis for its issuance.

Article 9 of the Law of Ukraine "On Metal Scrap" No.619-XIV dated 5 May 1999 shall be supplemented by provisions that customs clearance of export of metal scrap shall be conducted only if the corresponding card of registration of foreign economic contract is issued by the Ministry of Economic Development and Trade of Ukraine.

The Law of Ukraine “On State Regulation of Production and Turnover of Ethyl, Cognac and Fruit Alcohol, Alcoholic Beverages and Tobacco Products” No. 481/95-BP dated 19 December 1995 shall be supplemented by provisions that customs clearance of export (import) of ethyl, cognac and fruit alcohol, rectified fruit ethyl alcohol, crude alcohol grape alcohol, raw fruit shall be conducted with the appropriate license.

IV. AGRICULTURE

Ukrainian poultry is officially allowed on the EU market|3|

On 20 February 2013 the Ukrainian manufacturers acquired the right to supply poultry meat, poultry, eggs and egg products to the EU. Positive decision regarding the import of poultry products of Ukrainian origin to the EU market, the biggest market in the world for such products, became possible after the entry into force of EC Regulation No. 88/2013.

Just to remind: On 4 December 2012 the Standing Committee on the Food Chain and Animal Health of the European Commission decided to include Ukraine in the list of countries which manufacturers, complying with the relevant requirements of the EU, will be entitled to supply the products of poultry meat,meat of wild birds, eggs and egg products to the European market. The relevant Regulation No.88/2013 amending Regulation EC 798/2008/ES was published in the Official Journal of the European Union on 31 January 2013.

Unified register of agricultural equipment|4|

On 21 January 2013 the Ministry of Agricultural Policy and Food of Ukraine adopted the Order “On Approval of the Unified Register for Conducting Automated Accounting of Tractors, Self-propelled Chassis, Self-propelled Agricultural, Road Construction and Ameliorative Equipment, Agricultural Machinery and Other Mechanisms” No.29 dated 22 January 2013. The Order provides that the collection, storage and processing of data in the Register shall be conducted pursuant to the Law of Ukraine "On Personal Data Protection" No. 2297-VI dated 1 June 2010. The Register is kept by the State Inspection of Agriculture of Ukraine. The Order defines the list of information to be included in the Register about the equipment, the owner of the equipment; procedures of inclusion of relevant information in the Register, etc.

State control of wheat export|5|

On 5 February 2013 the Ministry of Agricultural Policy and Food of Ukraine reported that only companies that bought wheat at a trading session, held on the Agrarian Fund on 22 January 2013, have the right to export wheat from Ukraine. The Ministry said that at present, corn is the main crop that is exported from Ukraine among grain crops.

V. PHARMACEUTICALS

Licensing conditions for the import of pharmaceutical products|6|

On 20 February 2013 the Ministry of Healthcare of Ukraine adopted the Order "On Approval of the Licensing Conditions of Conducting the Economic Activity related to Import of Pharmaceutical Products". The Order came into force on 1 March 2013. The Order provides for the procedure for obtaining a license to import pharmaceutical products and requirements to be followed by the licensee. In particular, to obtain a license, an entity shall submit an application form which is attached as Annex 1 to the Order. The application shall be accompanied by the documents specified in Article 10 of the Law of Ukraine "On Licensing the Certain Types of Activities". In addition, the Order provides that the State Service on Pharmaceutical Products shall adopt the decisions on issuance of license within 10 working days starting from the date of submission of application.

VI. PRODUCT SAFETY

Regulation of usage of synthetic detergents and household chemicals

On 27 February 2013 the Ministry of Economic Development and Trade of Ukraine published on its official web-site the Draft Law “On Peculiarities of State Regulation of Synthetic Detergents and Household Chemicals”|7|. The Draft Law provides for the procedures of state regulation and control of usage of synthetic detergents and household chemicals. In particular, the Draft Law prohibits the manufacture, import and sale in Ukraine of the synthetic detergents and household chemicals, which include mass fraction of phosphates in terms of P2O5 more than: a) 17% – from 1 January 2014; b) 10% – from 1 January 2016; c) 5% – from 1 January 2019; d) 0.7% – from 1 January 2021.

Requirements to food products and some other materials

On 9 January 2013 the Ministry of Healthcare of Ukraine registered in the Ministry of Justice of Ukraine three Orders dated 29 December 2012 that define requirements to food products and some other materials:

1. The Order “On Approval of the State Sanitary Norms and Rules “Medical Requirements to Quality and Safety of Food Products and Raw Materials” No. 1140;

2. The Order "On Approval of the State Sanitary Norms and Rules “Materials and Textile, Leather and Fur Items. Basic Hygiene Requirements” No. 1138;

3. The Order "On Approval of the State Sanitary Norms and Rules "Polymer and Polymer Containing Materials, Products and Structures Used in Construction and Furniture Manufacturing. Hygienic Requirements” No. 1139.

The Order No. 1140 stipulates general requirements to food products; to food labeling, safety and nutritional value. The Order No. 1138 includes hygienic requirements to raw materials, sanitary requirements to textile, leather and fur materials and items; hygienic requirements to children products, requirements to packaging, storage, transport, monitoring of compliance with sanitary norms and rules. The Order No. 1139 provides for hygiene requirements to polymer and polymer containing materials; hygienic evaluation of polymeric and polymer containing materials and technical standards etc.

VII. OTHERS

Corporate Code of Conduct on Cross-Border Transfer of Personal Data|8|

The State Service of Ukraine on Personal Data Protection developed the Corporate Code of Conduct on Cross-Border Transfer of Personal Data including the agreements on personal data transfer to the countries which have not acceded to the Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data and the Additional Protocol to the Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data regarding supervisory authorities and transborder data flows between Controller and Controller/Controller and Processor.

In its official letter, the State Service on Personal Data Protection recommended application of agreements as a part of the Corporate Code of Conduct for the protection of personal data. The State Service believes that the use of the abovementioned agreements will allow the Controller of personal databases to ensure compliance with the legislation of Ukraine on personal data protection regarding the cross-border transfer of personal data.


|2|http://www.me.gov.ua/control/uk/publish/article?art_id=196458&cat_id=32862

|3|http://ukraine-eu.mfa.gov.ua/ua/press-center/news/10347-shlyah-ukrajinsykoji-produkciji-ptahivnictva-do-rinku-jes-oficijno-vidkrito

|4|http://zakon4.rada.gov.ua/laws/show/z0243-13

|5|http://minagro.gov.ua/uk/node/4235

|6|http://zakon4.rada.gov.ua/laws/show/z0307-13

|7|http://www.me.gov.ua/control/uk/publish/article?art_id=198500&cat_id=32862

|8|http://chamber.ua/files/documents/updoc/32/Corporate_Code.pdf

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