notification under paragraph 9 of the understanding
on the balance-of-payments provisions of the
general agreement on tariffs and
trade 1994
Communication from Ukraine
The following communication, dated 20 January 2015, is being circulated
at the request of the Delegation of Ukraine.
_______________
On the basis of Paragraph 9 of the Understanding on the
Balance-of-Payments Provisions of GATT 1994 Ukraine hereby notifies
introduction of import measures taken for the balance‑of‑payments purposes.
Temporary import surcharge is being introduced because of serious
deterioration of the balance of payments of Ukraine, a significant reduction of
its monetary reserves. In view of this critical situation Ukraine adopted
a WTO-consistent price-based temporary measure on an MNF basis.
The objective of this measure is to address quickly the negative balance
of payments of Ukraine,
a significant reduction of monetary reserves of the National Bank and to
restore equilibrium of the balance of payments.
In 2014 balance
of payments of Ukraine was
affected by a combination of extremely adverse factors such as increased
barriers to Ukrainian export to traditional markets, unfavourable market prices
for major export goods, anti-terrorist operation in eastern Ukraine and annexation of Crimea,
dramatic devaluation of the national currency, destabilization of the banking
system and outflow of investments.
Following 11
months of 2014 the balance of payments has been formed as negative at more than
US$11,046 million (while it was positive at US$416 million during the same
period of 2013).The negative result has been formed by two main aggregated
items of balance of payments: current account deficit (US$4,486 million) and
account of capital and financial transactions (US$6,560 million). As of
09.01.2015 the international reserves amounted to US$ 7.34 billion which
provided funding of future imports for 1.4 months (against US$20.4 billion at
the beginning of 2014, or 2.4 months of future imports).
The legal basis for the measure is the Law of Ukraine "On measures
concerning stabilization of the balance of payments of Ukraine in compliance
with Article XII of the General Agreement on Tariffs and Trade 1994" of 28
December 2014 No. 73-VIII (attached) and the Law of Ukraine "On Amending the
Customs Code of Ukraine (concerning stabilization of the balance of
payments)" of 28 December 2014 No. 74-VIII (attached).
Pursuant to these
Laws, Ukraine
introduces temporary
import surcharge of 5% and 10% to the customs value of goods
imported into the customs territory
of Ukraine as follows:
10% for goods classified in groups
1-24 in
the UKTZED (UKTZED- Ukrainian Classification of Goods for Foreign Economic
Activity, based on HS2012);
5 % for goods classified in groups 25-97 in the UKTZED;
10 % for
goods that are charged with import duty in accordance with Article 374 of the
Customs Code of Ukraine (Terms
of import (transfer) by nationals (citizens or private persons) of
goods into the customs territory
of Ukraine).
Import surcharge is levied on goods imported to the customs territory of Ukraine regardless of country of origin, except for
essential goods, as follows:
oil classified in subheading 2709 00 90 00 of the UKTZED;
natural gas classified in subheadings 2711 11 00 00, 2711 21
00 00 of the UKTZED;
non-irradiated fuel elements (FE), classified in subheading 8401 30 00
00 of the UKTZED;
electrical energy, classified in subheading 2716 00 00 00 of the UKTZED;
coal classified in subheadings 2701 11 00 00, 2701 12 10 00, 2701 12 90
00, 2701 19 00 00, 2704 00 19 00,
2704 00 30 00, 2708 20 00 00, 2713 11 00 00, 2713 12 00 00
of the UKTZED;
gasoline, mazout (residual fuel oil) and diesel fuel classified in
subheading 2710 of the UKTZED, except subheadings 2710 91 00 00 and 2710 99 00
00;
goods listed in paragraphs 2-7, 9, 10, 12, 13, 15, 18-20 of the first
part of Article 282 (exemption of duty),
first and forth parts of Article 287 (duties on certain products), and subparagraph 11 of paragraph 4,
paragraph 4 of Chapter XXI of the Customs Code of Ukraine (temporary
exemption from import duty of the goods under the customs regime of import);
medical devices for hemodialysis and
treatment of cancer patients according to the list established by the Cabinet
of Ministers of Ukraine;
goods granted free of charge to Ukraine
by other countries' governments or international organizations under the
international (governmental) agreements ratified by the Verkhovna Rada of Ukraine.
The temporary import surcharge will be effected from the date of
publication of the Decision of the Cabinet of Ministers of Ukraine on
completion of consultations with international financial institutions.
Ukraine is ready to enter
into consultations at the WTO
Committee on Balance-of-Payments Restrictions under Article XII of the GATT 1994
and all applicable provisions and procedures.
_______________
annex 1
LAW OF UKRAINE
On measures concerning
stabilization of the balance of payments of Ukraine
in compliance with Article XII of the General Agreement on Tariffs and Trade
1994
Verkhovna Rada of Ukraine decides:
Article 1. Imposition of import surcharge
Temporarily for the period of 12 months to impose import surcharge in
compliance with Article XII of the General Agreement on Tariffs and Trade
1994 and Understanding on the Balance‑of‑Payments Provisions of the
GATT 1994.
Import surcharge is levied on goods imported to the customs territory of Ukraine
according to the import customs regime regardless of country of origin and
signed agreements (treaties) of Ukraine
on free trade.
Article 2. Objects for levying
Objects for levying of import surcharge are goods defined in the first
and second parts of Article 277 of the Customs Code of Ukraine except essential
products in accordance with Article 5 of this Law.
Article 3. Basis for levying of import
surcharge
1. The basis for levying of import surcharge
is the customs value of goods imported to the customs territory of Ukraine,
determined in accordance with provisions of the Customs Code of Ukraine.
Article 4. Rates of the import surcharge
The rates of the import surcharge are as follows:
10 % for goods classified in groups
1-24 of the Ukrainian Classification of Goods for Foreign Economic Activity
(the UKTZED);
5 % for goods classified in groups 25-97 of the UKTZED;
10 % for goods that are levied with
import duties in accordance with Article 374 of the Customs Code of Ukraine.
Article 5. Essential goods
Essential goods are:
· oil classified in subheading 2709 00
90 00 of the UKTZED;
· natural gas classified in subheading
2711 11 00 00, 2711 21 00 00 of the UKTZED;
· non-irradiated fuel elements (FE),
classified in subheading 8401 30 00 00 of the UKTZED;
· electrical energy, classified in
subheading 2716 00 00 00 of the UKTZED;
· coal classified in subheadings 2701
11 00 00, 2701 12 10 00, 2701 19 00 00, 2701 12 90 00, 2704 00 19 00,
2704 00 30 00, 2708
20 00 00, 2713 11 00 00, 2713 12 00 00 of the UKTZED;
· gasoline,
mazout (residual fuel oil) and
diesel fuel classified in subheading 2710 of the UKTZED, except subheadings
2710 91 00 00 and 2710 99 00 00;
· goods
listed in paragraphs 2-7, 9, 10, 12, 13, 15, 18—20 of the first part of the
Article 282, first and forth parts of the Article 287, subparagraph 11 of
paragraph 4, paragraph 4 of the Chapter XXI of the Customs Code of Ukraine;
· medical devices for hemodialysis and
treatment of cancer patients according to the list established by the Cabinet
of Ministers of Ukraine:
· goods granted free of charge to Ukraine by other countries governments or
international organizations under the international (governmental) agreements
ratified by the Verkhovna Rada of Ukraine.
Article 6. This Law shall enter into force
upon publication of the Decision of the Cabinet of Ministers of Ukraine on
completion of consultations with international financial institutions
President of Ukraine P. POROSHENKO
Kyiv
28
December 2014
No.73-VIII
_______________
annex 2
LAW OF UKRAINE
On amending the Customs Code of
Ukraine
(concerning stabilization of the balance of payments)
Verkhovna Rada of Ukraine decides:
I. To amend the Customs Code of Ukraine
(Vidomosty (Gazette) of the Verkhovna Rada of Ukraine, 2012, No. 44—48, p. 552)
as follows:
in the third part of Article
48 to replace words "countervailing or special" by words "countervailing,
special or import surcharge";
to supplement first part of
Article 270 with the words "particular law on imposition of import
surcharge";
to supplement item 4 of the
second part of Article 271 with the words "import surcharge";
in Article 275:
To supplement the first part with paragraph 4
as follows:
"4) import surcharge";
to exclude the second part;
to supplement first paragraph of the third part
with the words "in accordance with Law of Ukraine "On application of special measures
on import to Ukraine";
to supplement the article by part six as follows:
"6. Import surcharge is imposed by the law
in compliance with Article XII of the General Agreement
on Tariffs and Trade 1994 and Understanding on the Balance-of-Payments Provisions of the GATT 1994 in case of
serious reduction of the balance of payments or decline of monetary reserves or reaching their minimum, in
order to ensure equilibrium in the
balance of payments and the increasing of monetary reserves";
in Article 282:
in second subparagraph of paragraph 19 of the
first part to exclude the word "import";
to add the article after the first part by a new part as follows:
"2. Goods listed in items 6, 10, 19 of the
first part of Article 282,
in the first and the fourth parts of Article 287 of the Customs Code of Ukraine are exempt from
charging with special types of duties".
In this end, the second and third parts should be accordingly
considered as third and fourth parts;
paragraph 1 of the first part of Article 283 after the words "import
duty" to be supplemented by words "import surcharge";
in the first part of Article 288 to replace words "Special duty,
antidumping duty and countervailing duty" by words "Special types of
duty";
in subparagraph 4 of paragraph 4 of Chapter XXI
"Final and Transitional Provisions" the words and numbers "until
1 January 2015" should be replaced by the wording "until
1 January 2018".
II. This Law shall enter into force upon
publication of the Decision of the Cabinet of Ministers of Ukraine on
completion of consultations with international financial institutions
President of Ukraine P.
POROSHENKO
Kyiv
28 December 2014
No.74-VIII
__________