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Monopolization of package waste utilization market is an anti-competitive measure of state authorities

Decree of the Cabinet of Ministers of Ukraine binding the companies – producers of packing and packaged goods and importers of packaged goods –  to enter into contracts with State enterprise “Ukrekomresursy” for provision of paid services for package waste utilization, along with the joint order of the corresponding ministries anticipating dependence of custom clearance of imports on availability of agreements with aforementioned enterprise, is the anti-competitive measure of the state authorities, as stated the attorney of Volkov Koziakov and Partners Law Firm Lesya Kovtun.
That was the way she commented on the statement of the American Chamber of Commerce (ACC) with respect to monopolization in Ukraine of the package waste utilization market that was made public the other day by ACC.
“Such actions are related to anti-competitive measures of state authorities pursuant to part 2 of Article 15 of the Law “On protection against economic competition” and to violation of the laws on economic competition protection in accordance with Article 50 of the same law”, the attorney explained during the interview to Interfax-Ukraine Agency.
She also noted that the relevant decree of the authorities does not relate to a state fee procedure but to an illegal constraint for importers obliging them to conclude contracts for rendering unnecessary agency services on the prepayment conditions; since a new fee for the mentioned company services on package waste utilization speaks solely about conclusion of contracts for organizing collection and utilization of containers and packages, and not about actual performance of such activities by the enterprise.
She explained that the company “Ukrekomresursy” only acts as the agent between an importer and a licensed company whose employees will actually arrive at importer’s warehouse, ship all package wastes, pre-process them at their facilities and transfer them for utilization.
In accordance with the Law “On wastes” an importer can choose a contractor for containers (packages) utilization and the relevant payment conditions, stated the attorney. Thus, it is obvious that the letter of the law is not followed in the specified decision of the authorities and the joint order by the Ministry of Economy of Ukraine, Ministry of Environmental Protection and State Customs’ Service dated 30 July 2009.
In view of that, they may be cancelled as a result of considering a case on violation of economic competition by the Antimonopoly Committee of Ukraine, assumed L. Kovtun. She explained that according to the Law “On protection against economic competition”, the Antimonopoly Committee of Ukraine can at their discretion initiate an investigation with regard to anti-competitive actions of state authorities that may result in termination of such competition violation.
As reported, the American Chamber of Commerce has pointed out to complicacy of importing goods to Ukraine due to introduction by the Ukrainian authorities of a basically new fee for package waste utilization services.
The Cabinet of Ministers of Ukraine incorporated some modifications to its decree “On implementation of waste collection, processing and utilization system, as secondary raw stock” N 915 dated 26 July 2001 with a new decree N 508 dated 20 May 2009, according to which enterprises producing containers and package materials in Ukraine and importing them with goods are obliged to provide for their utilization independently with observance of the legislation regulations or to enter into corresponding agreements with state enterprise “Ukrekomresursy” with payment for rendered services in accordance with the tariffs established in item 2 of the same decree.
It is foreseen in the joint order by the Ministry of Economy of Ukraine, Ministry of Environmental Protection and State Customs’ Service dated 30 July 2009 “On approval of Procedure for custom clearance of imported goods in containers and package materials” that one of the conditions for custom clearance of imported goods shall be indicating a reference number and date of agreement between consignee (importer) and state enterprise “Ukrekomresursy”.
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