DECISION OF ECONOMIC COUNCIL OF COMMONWEALTH OF INDEPENDENT STATES

of March 13, 2009

About the Overview of trade policy of Ukraine

The economic council of the Commonwealth of Independent States solved:

1. Take into consideration the Overview of trade policy of Ukraine (is attached).

2. Send the specified Overview to the governments of gosudarstvuchastnik of the CIS for informing the interested ministries and departments.

3. Charge to Executive committee of the CIS to place in a month the specified Overview on the website of Executive committee of the CIS on the Internet.

 

Overview of trade policy of Ukraine

The overview of trade policy of Ukraine is constituted according to the Procedure for carrying out reviews of trade policy of the State Parties of the CIS approved by the Decision of Economic council of the Commonwealth of Independent States of March 15, 2002.

The overview is prepared by Executive committee of the CIS on the basis of the report provided by the Ministry of Foreign Affairs of Ukraine based on the materials prepared by the Ministry of Economics of Ukraine and information on the matter which is available for Executive committee of the CIS.

The purpose of reviews of trade policy is achievement by the State Parties of the CIS of transparency of trade policy, assistance to observance of the rules, regulations and obligations fixed in international treaties and documents concerning forming and effective functioning of the free trade area and also regular carrying out objective assessment of the main indicators of trade policy and practice of the State Parties of the CIS, their influence on development of mutual trade.

I. Mode of trade policy

1.1. Institutional framework

Foreign trade of Ukraine is regulated by the modes set legislative and regulations, two - both multilateral interstate and intergovernmental agreements of Ukraine, and also obligations undertaken in case of the accession to the World Trade Organization (WTO). Besides, the special regulation regulating foreign trade of Ukraine is the Law of Ukraine "About foreign economic activity" of April 16, 1991.

1.2. Principles of foreign economic activity

Business entities of Ukraine and foreign business entities when implementing foreign economic activity are guided by the following principles:

The principle of sovereignty of the people of Ukraine in implementation of foreign economic activity which consists:

- in exclusive right of the people of Ukraine independently and independently to perform foreign economic activity, being guided by the laws which act on the territory of Ukraine;

- need of steady accomplishment by Ukraine of all agreements and obligations of Ukraine in the field of the international economic relations.

Liberty principle of the external economic entrepreneurship which consists:

- from the right of subjects of foreign economic activity to enter voluntarily foreign economic relations;

- the rights of subjects of foreign economic activity to perform it in any forms which are directly not prohibited by current laws of Ukraine;

- observance obligations when implementing foreign economic activity of the procedure established by the laws of Ukraine;

- exclusive right of ownership of subjects of foreign economic activity for all results of foreign economic activity received by them.

The principle of legal equality and nondiscrimination which consists:

- from equality before the law of all subjects of foreign economic activity, irrespective of patterns of ownership, including the state, when implementing foreign economic activity;

- prohibition of any, except the provided laws of Ukraine, actions of the state of which restriction of the rights and discrimination of subjects of foreign economic activity, and also foreign business entities behind patterns of ownership, location and other signs is result;

- inadmissibility of restrictive activities from any her subjects, except the cases provided by this law.

The principle of rule of law which consists:

- from regulation of foreign economic activity only the laws of Ukraine;

- prohibition of application of bylaws and acts of local self-government which create for subjects of foreign economic activity conditions less favorable, than established by the laws of Ukraine.

The principle of protection of interests of subjects of foreign economic activity which consists that Ukraine as the state:

- provides equal protection of interests of all subjects of foreign economic activity and foreign business entities in its territory according to the laws of Ukraine;

- performs equal protection of all subjects of foreign economic activity of Ukraine outside Ukraine according to rules of international law;

- performs protection of state interests of Ukraine, both in the territory, and beyond its limits only according to the laws of Ukraine, conditions of the international treaties signed by it and rules of international law.

The principle of equivalence of exchange, inadmissibility of dumping during the importing and commodity exportation.

1.3. Types of foreign economic activity

Treat types of foreign economic activity which are performed by subjects in Ukraine:

- export and commodity import, capitals and labor power;

- provision by subjects of foreign economic activity of Ukraine of services to foreign business entities, including: production, forwarding, insurance, consulting, marketing, export, intermediary, broker, agency, consignment, managerial, accounting, auditor, legal, tourist, etc. which directly and only are not prohibited by the laws of Ukraine; provision of the specified services by foreign business entities to subjects of foreign economic activity of Ukraine;

- scientific, scientific and technical, research and production, production, educational and other cooperation with foreign business entities; education and training of specialists at commercial basis;

- the international financial transactions and transactions with securities in the cases provided by the laws of Ukraine;

- credit and settlement operations between subjects of foreign economic activity and foreign business entities; creation by subjects of foreign economic activity of bank, credit and insurance institutions outside Ukraine; creation by foreign business entities of the specified organizations in the territory of Ukraine in the cases provided by the laws of Ukraine;

- joint business activity between subjects of foreign economic activity and foreign business entities which includes creation of joint businesses of different types and forms, carrying out general economic activities and general ownership of property, both in the territory of Ukraine, and beyond its limits;

- the business activity in the territory of Ukraine connected with provision of licenses, patents, know-how, trademarks and other non-material objects of property from foreign business entities;

- similar activities of subjects of foreign economic activity outside Ukraine;

- the organization and implementation of activities in the field of holding exhibitions, auctions, the biddings, conferences, symposiums, seminars and other similar actions which are performed on commercial basis, with participation of subjects of foreign economic activity; the organization and implementation of wholesale, consignment and retail trade in the territory of Ukraine for foreign currency in the cases provided by the laws of Ukraine;

- goods exchange (barter) transactions and other activities constructed on forms of mutual trade between subjects of foreign economic activity and foreign business entities;

- rent, including leasing transactions between subjects of foreign economic activity and foreign business entities;

- transactions on acquisition, sale and currency exchange at currency auctions, the currency exchanges and the interbank foreign exchange market;

- works on contractual basis of physical persons of Ukraine with foreign business entities, both in the territory of Ukraine, and beyond its limits; works of foreign physical persons on contractual oplatny basis with subjects of foreign economic activity, both in the territory of Ukraine, and beyond its limits;

- other types of foreign economic activity which are not prohibited directly and in exclusive form by the laws of Ukraine.

Intermediary transactions when which implementing the property right to goods does not pass to the intermediary (based on commission, agency agreements, agreements of the order, etc.) are performed without restrictions.

1.4. Purposes of trade policy

The purposes of foreign trade policy of Ukraine are:

- liberalization of foreign trade, simplification of the mechanism of export and import, and also tariff and non-tariff regulation;

- protection of interests of producers, assistance to increase in export of domestic production, assistance to development of external commercial relations;

- assistance to purposeful actions for quality assurance of the imported products for consumer protection;

- assistance to prevention of illegal promotion through customs border of drugs, arms, objects of historical, ethnographic and cultural value, and also rare plants and animals.

1.5. Regulatory framework

It is possible to carry the following documents to the basic international treaties of Ukraine signed with the State Parties of the CIS which regulate conditions and procedure for trade and economic cooperation. Multilateral agreements:

- The agreement on general terms and the mechanism of support of development of production cooperation of the companies and industries of gosudarstvuchastnik of the Commonwealth of Independent States of December 23, 1993;

- The agreement on creation of the free trade area of April 15, 1994; - The protocol on modification and amendments in the Agreement of April 15, 1994 about creation of the free trade area of April 2, 1999;

- Rules of determination of the country of goods' origin of November 30, 2000;

- The agreement on creation of the free trade area between the State Parties of GUUAM of July 20, 2002.

Bilateral agreements:

- The agreement between the Government of Ukraine and the Government of the Republic of Belarus on free trade of December 17, 1992;

- The agreement between the Government of Ukraine and the Government of the Russian Federation on free trade of June 24, 1993;

- The agreement between the Government of Ukraine and the Government of the Republic of Kazakhstan on free trade of September 17, 1994;

- The agreement between the Government of Ukraine and the Government of the Republic of Armenia on free trade of October 7, 1994;

- The agreement between the Government of Ukraine and the Government of the Republic Turkmenistan on free trade of November 5, 1994;

- The agreement between the Government of Ukraine and the Government of the Republic of Uzbekistan on free trade of December 29, 1994;

- The agreement between the Government of Ukraine and the Government of the Republic Georgia on free trade of January 9, 1995;

- The agreement between the Government of Ukraine and the Government of the Russian Federation on realization of free trade regime of February 8, 1995;

- The agreement between the Government of Ukraine and the Government of the Kyrgyz Republic on free trade of May 26, 1995;

- The agreement between the Government of Ukraine and the Government of the Azerbaijan Republic on free trade of July 28, 1995;

- The agreement between the Government of Ukraine and the Government of the Republic of Moldova on free trade of August 29, 1995;

- The agreement between the Cabinet of Ministers of Ukraine and the Government of the Republic of Tajikistan on free trade of July 6, 2001;

- The free-trade agreement between the Cabinet of Ministers of Ukraine and the Government of the Republic of Moldova of November 13, 2003;

- The agreement between the Ministry of Economics of Ukraine and the Ministry of Economic Development and Trade of the Russian Federation on regulation of deliveries of flat-rolled holodnokatany products by origin from Ukraine on customs area of the Russian Federation of June 21, 2007;

- The agreement between the Ministry of Economics of Ukraine and the Ministry of Economic Development and Trade of the Russian Federation on regulation of deliveries of rods for reinforcing of steel concrete designs origin from Ukraine on customs area of the Russian Federation of August 13, 2007.

Codes:

- The customs code of Ukraine of July 11, 2002 N 92-IV;

- The civil code of Ukraine of January 16, 2003 N 435-IV;

- The economic code of Ukraine of January 16, 2003 N 436-IV.

Laws of Ukraine:

- "About foreign economic activity" of April 16, 1991 N 959-HP;

- "About the Common customs tariff" of April 5, 1992 N 2097-XII;

- "About general provisions of creation and functioning of special (free) economic zones" of October 13, 1992 N 2673-XII;

- "About procedure for performing payments in foreign currency" of September 23, 1994 N 185/94-BC;

- "About transactions with raw materials supplied by the customer in the external economic relations" of September 15, 1995 N 327/95-BC;

- "About state regulation of production and turnover of alcohol ethyl, cognac and fruit, alcoholic beverages and tobacco products" of December 19, 1995 N 481/95-BC;

- "About export (export) duty for the live cattle and leather raw materials" of May 7, 1996 N 180/96-BC;

- "About excise duty rates on some vehicles and bodies to them" of May 24, 1996 N 216/96-BC;

- "About rates of the duty and import duty for some goods (products)" of July 11, 1996 N 313/96-BC;

- "About rates of export (export) duty for seeds of some types of oil-bearing crops" of September 10, 1996 N 1033/96-XIV;

- "About state regulation of agricultural import" of July 17, 1997 N 468/97-BC;

- "About safety and quality of foodstuff" of December 23, 1997 N 771/97-BC;

- "About protection of national producer against dumped imports" of December 22, 1998 N 330/97-XIV;

- "About protection of national producer against the subsidized import" of December 22, 1998 N 331/97-XIV;

- "About application of special measures concerning import to Ukraine" of December 22, 1998 N 332/97-XIV;

- "On regulation of goods exchange (barter) transactions in the field of foreign economic activity" of December 23, 1998 N 351/97-XIV;

- "About scrap metal" of May 5, 1999 N 619-XIV;

- "About single collection which copes at check points through frontier of Ukraine" of November 4, 1999 N 1212-XIV;

- "About distribution of copies of audiovisual works, soundtracks, videograms, computer programs, databases" of March 23, 2000 N 1587-III;

- "About customs tariff of Ukraine" of April 5, 2001 N 2371-III;

- "About features of state regulation of the activities of subjects of managing connected with production, export by import of disks for laser systems of reading, matrixes" of January 17, 2002 N 2953-III;

- "About export (export) duty for waste and scrap of ferrous metals" of October 24, 2002 N 216-IV.

Decrees of the Cabinet of Ministers of Ukraine:

- "About the excise duty" of December 26, 1992 N 18-92;

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