Ukraine tries to facilitate tobacco products import to Armenia with WTO’s assistance
Kyiv. July 26, 2010
WTO) and submitted a
consultations with Armenia to WTO Dispute Settlement
Body. According to Ukraine’s
statement published at WTO’s website, Armenia applies
Armenia "On Presumptive
Tax for Tobacco Products" of March 24, 2000 the excise rate is 6,500 drams per
1,000 cigarettes for imported products and 4,750 drams - for domestic products.
Thus, the regime for Ukrainian products is less favorable than for like domestic
paragraphs 1, 2 and 4 of
Article III of the General Agreement on Tariffs and Trade 1994 (GAAT 1994)
envisaging the establishment of national regime of internal taxation and
regulation in relation to imported products.
Moreover, under the Law of
Armenia "On Excise Duty” of July 7, 2000, Armenia imposes excise tax on alcoholic beverages
(Customs commodity codes: 2203, 2204, 2205, 2206, 2207, 2208) in violation of
its commitments before the WTO as it protects national producers via
discrimination of the products imported from Ukraine.
Earlier similar things
with Ukrainian products occurred in the Georgian market. Ukraine
saw discrimination in that excise duty on imported tobacco products was one and
a half times higher than for domestic cigarettes. The Ministry of Economy of
Ukraine conducted nonofficial
consultations to protect interests of Ukrainian producers. As
Parliament decided to set the unified excise rate.
nonofficial consultations were held with Armenian representatives;
unsatisfactory outcome for Ukraine. Hence, this
the reason for Ukraine to request for consultations
within the WTO.
Koziakov and Partners
Ukraine-Georgia consultations pass properly than mutually agreed solution will
be made. Otherwise, if the parties fail to agree within due term set for
consultations than Ukraine could call for a Panel to
settle the dispute.
Ms. Gladshtein added that under Article 4.3 of the WTO
Understanding on Rules and Procedures on Dispute Settlements, Armenia
has to respond to the request not later than 10 days from the moment of its
receipt, unless otherwise provided, and come into consultations not later than
30 days after the receipt of the request for consultations.