FEDERATION TO THE WORLD TRADE ORGANIZATION 24 страница

665. The representative of the Russian Federation explained that work was on-going to bring national and CU export licensing provisions into conformity with WTO disciplines. Federal Law No. 157-FZ "On the State Regulation of Foreign Trade Activity" had been replaced by Federal Law No. 164-FZ of 8 December 2003 "On the Fundamentals of State Regulation of Foreign Trade Activity". This Federal Law, which had been adopted on 8 December 2003, came into force on 15 June 2004. Corresponding amendments would be made to Government Resolution No. 364 of 9 June 2005 "On the Approval of Regulations about the Order of Licensing in the Sphere of Foreign Trade in Goods and about the Order of Formation and Conducting Federal Bank of the Given Licences in the Sphere of Foreign Trade". Further work was required on, inter alia, the Agreement on Non-Tariff Regulation and the Regulations on Precious Stones and Metals.

666. He further noted that work was also being conducted to bring the export licensing regime for precious stones and metals of the Russian Federation in accordance with WTO disciplines. Specifically, Presidential Decree No. 742 of 21 June 2001 "On the Procedure of Importation into and Exportation from the Russian Federation of Precious Metals and Precious Stones" and Presidential Decree No. 1373 of 30 November 2002 "On Regulations on Importation to the Russian Federation and Exportation from the Russian Federation of Natural Diamonds and Cut Diamonds" had been amended, taking due account of other international commitments, relevant for trade in natural and cut diamonds. In this regard, the Russian Federation had replaced the licensing restrictions on exports of precious stones, diamonds, and metals with an automatic licensing regime. These amendments reduced the number of licensed goods and removed bans and other quantitative restrictions on the export of certain types of goods, as well as providing for future liberalization of international trade involving this category of goods. The representative of the Russian Federation also noted, that documents required for the issuance of a licence included: (i) for exports of precious stones and metals, a certificate of special registration in the State Assay Chamber of the Ministry of Finance (Federal Law No. 41-FZ of 26 March 1998 "On Precious Metals and Precious Stones") and for crediting organizations, an authorization of the Central Bank or of a credit institution, licensed by the Central Bank to perform operations with precious metals (Federal Law No. 395-1 of 2 December 1990 "On Banks and Banking Activities", as amended on 27 July 2010); and (ii) for exports of ores of non-ferrous metals containing precious metals, a decision of the Ministry of Finance and the Ministry of Industry and Energy regarding the practicability and feasibility of commercial recovery of precious metals (Presidential Decree No. 742 of 21 June 2001 "On the Procedure of Importation into and Exportation from the Russian Federation of Precious Metals and Precious Stones"). Concerning queries by Members of the Working Party on export licensing of medicines and pharmaceuticals, the representative of the Russian Federation explained that, previously, under Federal Law No. 86-FZ of 22 June 1998 "On Medicines" (as amended on 18 December 2006), pharmaceuticals, which included raw materials for the manufacture of pharmaceuticals, could be exported only by legal persons having a licence for the production or wholesale trade of these goods, and pursuant to Government Resolution No. 854 of 6 November 1992 (as amended on 27 November 2006), exports of raw materials for the manufacturing of medicines had been subject to an export licence issued by the MIT, in coordination with the Federal Service for Supervision in the Sphere of Healthcare and Social Development of the Russian Federation. Under the CU Agreement on Non-Tariff Regulation, export licensing was permitted, in accordance with national legislation, for only those pharmaceuticals listed in section 2.12 of Table 28. Raw materials for manufacturing pharmaceuticals were not included in the list, and thus, export licensing of these materials was not provided for. He further explained, that under Federal Law No. 61-FZ of 12 April 2010 "On Circulation of Medicines", no restrictions were placed on the export of pharmaceuticals from the Russian Federation. Finally, Government Resolution No. 854 continued to apply only to the extent that it did not conflict with CU Decisions, and thus, did not provide a basis for restricting the exports of raw materials for the manufacture of medicines.

667. In response to questions regarding licensing requirements in the field of energy, the representative of the Russian Federation clarified that Federal Law No. 117-FZ of 18 July 2006 "On Export of Gas" applied to the gas (Commodity Classification of Foreign Economic Activity of the Russian Federation codes: 2711210000 and 2711110000) produced at all types of fields of hydrocarbon raw materials and transported in the gaseous or liquefied state. Federal Law No. 117-FZ established that the exclusive right to export gas (and respective licenses) would be granted to the organization being the owner of the unified gas supply system or to its 100 per cent subsidiary. The MIT was responsible for issuing the licence for the export of gas.

668. The representative of the Russian Federation confirmed, that, from the date of accession, quantitative restrictions on exports or restrictions on the sale for export of goods, such as quotas, bans, permits, prior authorization requirements, licensing requirements (including the requirements listed in Table 33), domestic market supply requirements or measures having equivalent effect that could not be justified under the provisions of the WTO Agreement, would be eliminated and not introduced, re-introduced or applied, whether by the Russian Federation or the competent bodies of the CU. He further confirmed that discretionary authority to temporarily ban exports or otherwise restrict exports, including under provisions of the Agreement on Licensing, the Precious Stones and Metals Regulations, or Federal Law No. 164-FZ of 8 December 2003 "On the Fundamentals of State Regulation of Foreign Trade Activity" whether exercised by the Russian Federation or the competent bodies of the CU, would be applied from the date of accession in conformity with the provisions of the WTO Agreement. He also confirmed that, if the Russian Federation took recourse to Article XX (i) of the GATT 1994, with respect to any measures, whether applied by the Russian Federation or the competent bodies of the CU, restricting exports of domestic materials necessary to ensure essential quantities of such materials to a domestic or CU processing industry, such measures would not operate to increase the exports of or the protection of such industry. The Working Party took note of these commitments.

669. The representative of the Russian Federation explained that the conditions that had led to the need to protect its exchange position had significantly improved and that the IMF arrangements had terminated. In light of these developments, the Russian Federation would ensure, from the date of accession, that the export licensing regime for precious stones and metals, semi-precious stones, objects made thereof, certain alloys, semi-fabricates, ores, concentrates and wastes, whether adopted and applied by the Russian Federation or the competent CU body, was consistent with WTO requirements. The Working Party took note of this commitment.

Other Customs Export Formalities

670. Members of the Working Party expressed concern about the practice of the Russian Federation of maintaining only a very limited number of customs checkpoints designated for declaration and exportation of certain products, for example, timber products such as logs, and metal scrap, and also the practice to close promptly certain customs checkpoints, thus creating serious impediments to trade. Some Members requested further clarification on the State Customs Committee (SCC) Order No. 1002 of 19 October 2001 "On Appointing Exportation Checkpoints" which stipulated the customs clearance checkpoints (now referred to as "customs checkpoints for declaration") that might be used for exportation of certain timber products by rail or road. A Member noted that this Order had been provisionally amended on 14 January 2002 to include customs checkpoints for declaration at its country borders with the Russian Federation and asked whether the Russian Federation intended to make a definitive amendment to SCC Order No. 1002, so as to avoid possible trade distorting effects. Another Member asked for information on the sorts of timber products covered by measures of the Russian Federation and a clarification on whether the restricted use of customs checkpoints for declaration of exports would also cover additional products. Members also raised concerns about SCC Order No. 1219 of 27 December 2000 "On Defining Places for the Customs Formalization and Export of Ferrous and Non-Ferrous Metals Scrap and Wastes", which provided that non-ferrous and ferrous metal scrap could be declared and exported only through the seaports of the Russian Federation. These Members were concerned that, in addition to creating potential delays and bottlenecks and adding to shipment costs, such restrictions could also act as de facto trade barriers. They asked the Russian Federation to provide additional information on these and other restrictions on which customs checkpoints could be used to declare and to export these products, to update the Working Party on steps being taken to increase the number of customs checkpoints authorised for the declaration and export of specific products such as metal scrap and timber products, and to ensure that these and other measures related to exportation would be brought in full conformity with WTO provisions upon accession.

671. One Member expressed concern about the limitation of customs checkpoints for exit and for declaration of certain products, specifically for wood. This Member asked about the implementation of Federal Customs Service (FCS) Order No. 1327 of 10 December 2002 "On Import Duty Rates". This Member noted that those measures must be based on justifiable reasoning and impede rightful trade flows as little as possible by ensuring a sufficient number of designated customs checkpoints relative to the importance of the trade flows, taking into account the geographic situation.

672. The representative of the Russian Federation explained that the policy of his Government was to base identification of designated customs checkpoints on the provisions of the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention, 1999), in particular, its Specific Annex A, Chapter 1. He further stated that, pursuant to Article 190 of the CU Customs Code, Articles 10.4 and 205 of Federal Law No. 311-FZ of 27 November 2010 "On Customs Regulation", the FCS was authorised to designate specific customs checkpoints for the declaration of specific types of goods for export for the purpose of ensuring the effectiveness of control over the implementation of customs legislation. The grounds for establishing such points were the same as those for imports, which were specified in paragraph 553 of the Section "Other Customs Formalities for Imports". He also noted that a comprehensive list of categories of goods currently subject to measures requiring declaration at designated customs checkpoints was reflected in Table 13 and Table 14.

673. In response to the specific concerns expressed by some Members, the representative of the Russian Federation said that the selection of designated customs checkpoints for the declaration of wood for export, listed in FCS Order No. 1327 of 10 December 2002 "On Import Duty Rates", was based on the following criteria: (i) availability of equipment necessary for customs control in respect of specified goods; (ii) conditions of transport infrastructure; and (iii) existing flows of trade in specified goods. He added that the said Order had been amended by FCS Order No. 362 of 2 April 2008, and the list of designated customs checkpoints for export declaration had been extended, based on the same criteria, up to 139 checkpoints. He further stated that the FCS Order No. 1327 was superseded by the FCS Order No. 801 of 20 April 2010 "On Checkpoints for Declaration of Certain Types of Goods", which also envisaged the list of 139 authorised checkpoints for declaration of wood for export.

674. He added that SCC Order No. 1002 of 19 October 2001 "On Appointing Exportation Checkpoints" for certain types of timber products (Codes of Commodity Nomenclature of Foreign Economic Activity of Russia: from 4401 10 0000 fuel wood in the form of logs and lumber; 4403; from 4404 chopped wood, piles and spiles, sharpened but not length sawed; 4406; 4407; 4409) had been invalidated by Order of the Ministry of Economic Development (MED) No. 105 of 25 May 2005 "On the Invalidation of some Legal Acts of the State Customs Committee of Russia". In addition, SCC Order No. 1219 of 27 December 2000 "On Defining Places for the Customs Formalization and Export of Ferrous and Non-Ferrous Metals Scrap and Wastes" had been invalidated by SCC Order No. 98 of 28 January 2004.

675. Pursuant to Law of the Russian Federation No. 4730-1 of 1 April 1993 "On the State Border of the Russian Federation" (as last amended on 31 January 2010), State border checkpoints were established by international agreements of the Russian Federation or by the Government, upon proposal of Federal executive bodies; or upon proposal of the subjects of the Russian Federation, as approved by the border guard agencies and frontier troops and the other Federal executive bodies concerned, taking into account the interests of adjacent and other foreign states. According to Article 162 of the CU Customs Code and Article 195 of Federal Law No. 311-FZ, goods and vehicles could depart from the territory of the Russian Federation at State border checkpoints or at other places established in compliance with the legislation on the State border of the Russian Federation during the customs bodies' working hours. The provisions of Article 162 of the CU Customs Code, however, did not extend to goods carried by sea (river) vessels and aircraft crossing the CU customs territory without stopping at a port or an airport located in the CU customs territory, as well as to the goods transported by pipeline and power lines/electricity transmission lines. Each exit checkpoint from the territory of the Russian Federation had a customs office responsible for accepting notifications of departure of goods and means of transport (such as vessels, lorries, or railway cars) from the CU customs territory, formalizing the completion of customs transit procedure, accepting customs declarations, and performing customs operations necessary for the departure of goods and means of transport and other customs operations.

676. With regard to the designated customs exit checkpoints, the representative of the Russian Federation added that, according to Article 195 of Federal Law No. 311-FZ, the Government of the Russian Federation had the right to designate customs exit checkpoints for certain categories of goods and could establish certain places for exit at the border in compliance with the legislation of the Russian Federation regarding the State border.

677. The representative of the Russian Federation confirmed that Table 13 and Table 14 were comprehensive lists of the categories of goods currently subject to measures requiring their declaration and/or exit at designated customs checkpoints. He further confirmed that, if any such measures were contrary to the WTO Agreement, they would be eliminated as of the date of accession of the Russian Federation to the WTO and that future measures concerning the declaration and/or exit of specific categories of goods at designated customs checkpoints, whether introduced, re-introduced or applied pursuant to national legislation, or CU Agreements or other CU Legal Acts, would be consistent with the WTO Agreement. Furthermore, he confirmed that from the date of accession all laws, regulations, decrees, decisions, judicial decisions and administrative rulings of general application connected with the exportation of goods, including those related to statistical control, customs clearance, documentation, and any changes to these laws, regulations, decrees, decisions, judicial decisions and administrative rulings of general application, whether introduced, re-introduced or applied by the Russian Federation or the competent bodies of the CU, would be published promptly and posted on the official websites of the responsible governmental bodies in such a manner as to enable governments and traders to become acquainted with them and that the Russian Federation would also publish the names of the governmental bodies responsible for administering them. Further, he confirmed that the Russian Federation would administer these laws, regulations, decrees, decisions, judicial decisions and administrative rulings of general application in a uniform, impartial and reasonable manner throughout its territory as required by the WTO Agreement. The Working Party took note of these commitments.

3. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS

Industrial policy, including subsidy policies

678. The representative of the Russian Federation stated that the provision of subsidies in the Russian Federation was regulated by budget, tax, customs, and anti-monopoly (competition) legislation. Under the relevant legislation, the following types of State support (financial contributions) were available to a recipient: (i) direct transfers of budgetary funds, including those under Federal-targeted and investment programmes; (ii) budgetary loans, credits, and guarantees; and (iii) postponements of payments of or exemptions from taxes and customs duties. Subsidies were being provided both at the Federal and Sub-Federal levels. In response to questions from Members, the representative of the Russian Federation stated, that, except as otherwise stated in the Working Party Report, his authorities had not identified any subsidies prohibited under Article 3 of the WTO Agreement on Subsidies and Countervailing Measures provided at any level of government in the Russian Federation. The Russian Federation had submitted a "Notification on Industrial Subsidies Granted from the Federal Budget of the Russian Federation" and a "Notification of Industrial Subsidies Allocated from the Budgets of the Subjects of the Russian Federation" for the year 2002 circulated to Members of the Working Party in WT/ACC/RUS/52 of 25 May 2005 and WT/ACC/RUS/51 of 23 May 2005, respectively, and additional information in documents WT/ACC/SPEC/RUS/31 of 20 February 2003, and WT/ACC/RUS/57 of 27 June 2008.

679. State support to the industrial sector of the Russian economy was mainly provided under Federal-targeted programmes. Direct transfers from the Federal budget or a regional budget to industries were also available. For details, he referred to Notifications on Industrial Subsidies Granted within the Territory of the Russian Federation, provided to Members in documents WT/ACC/SPEC/RUS/31 and WT/ACC/RUS/57. In response to questions of some Members about support to the coal industry, the representative of the Russian Federation explained that under the Resolution of the Government of the Russian Federation No. 1523 of 3 December 1997 "On State Financing of Restructuring of the Coal Industry" there were RUB 595.6 million (US 20 million USD) provided in the years 2001 to 2005. This Governmental Order was replaced by the Resolution of the Government of the Russian Federation No. 840 of 24 December 2004 (as amended on 22 October 2007) "On the List of Measures for the Coal Industry Restructuring". Under this Governmental Resolution, State support to the coal industry had been provided mainly to enhance social security of employees, secure safe work conditions in coal mining and liquidate major loss-making mines. No prohibited subsidies of any kind within the definition of Article 3 of the WTO Agreement on Subsidies and Countervailing Measures were available to the coal industry.

680. He added that the principles and mechanisms for granting export credits and export credit guarantees were foreseen in the Concept of Development of Financial Support (Guarantees) of Export of Industrial Products in the Russian Federation, adopted under Order of the Government of the Russian Federation No. 1493-r of 14 October 2003. The Concept envisaged procedures for granting:

- state guarantees against political and commercial risks arising during implementation of export contracts with foreign importers. State guarantees could only be provided if the Government of the foreign importer had provided counter-guarantees, or the contract was concluded with a sovereign buyer or the bank-creditor had provided credit to the foreign country. Under certain circumstances, counter-guarantees were not obligatory, e.g., if the foreign buyer had an investment-grade rating and was a resident of a country with an investment-grade sovereign rating;

- export credits including supplier credit; and

- partial compensation of interest rates of export credits including supplier credits.

681. Funding of export credits, guarantees, and partial compensation of credit stakes were envisaged in the Federal Budget. The total sum of the State export guarantees issued in 2005 to 2009 was 990 million USD, of which 282 million USD was issued in 2009. Also in 2009, export credits were provided in the total amount of RUB 55 billion (1.8 billion USD) and partial compensation of credit stakes for the total amount of 300 million USD. A mechanism for granting credits and guarantees compliant with the rules and norms of the WTO Agreement on Subsidies and Countervailing Measures, which incorporates by reference the OECD Arrangement on Officially Supported Export Credits, was being elaborated in furtherance of the Concept.

682. A Member asked about more recent developments with respect to this mechanism. This Member also inquired how premiums were determined and if there was mechanism to ensure that the premiums were sufficient to cover long term operating costs and losses of the programme.

683. In response, the representative of the Russian Federation noted that "Eximbank of Russia" (Joint-Stock Company) had been designated as an agent for the Government of the Russian Federation in providing State financial (guarantee) support for industrial exports, and the terms of its functioning were stipulated in the Agreement between the Ministry of Finance and Eximbank of Russia No. 01-01-06/04-28 on Performing the Functions of an Agent of State financial (guarantee) Support for Industrial Exports of 22 April 2006, which was replaced by the Agreement No. 01-01-06/04-102 of 28 May 2009. The possibility of issuing State guarantees was examined by the Committee of Directors of JSC "Eximbank of Russia" based on the ability of the exporter to meet repayment commitments, financial performance and sufficiency of the loan coverage. Positive findings of the bank in respect of exporters were not directed by the authorities of the Russian Federation. Commission rates for bank guarantees were estimated on the basis of an agreement between JSC "Eximbank of Russia" and a principal. In accordance with the tariff of commission rates of the Bank, the minimum level of commission rate for bank guarantees was set at the level of 0.15 per cent of the guarantee amount, but the actual rate, which was charged, depended on a risk assessment that was carried out for each recipient.

684. In response to requests from some Members for information on prohibited subsidies, both at the Federal and Sub-Federal levels of governments, the representative of the Russian Federation replied that, according to the Budget Code of the Russian Federation, budget funds were provided to recipients with the purpose specified in the drafts of both Federal and regional budgets, which were also examined and approved by Federal authorities. The Federal Service for Financial and Budget Surveillance and Federal Treasury, subordinated to the Ministry of Finance, ensured that budget funds were properly allocated. Provision of State aid within the entire territory of the Russian Federation was regulated by Federal Law No. 135-FZ of 26 July 2006 "On Protection of Competition" (as amended on 5 April 2010). According to this Federal Law, funds could be granted in accordance with a relevant Federal law; a relevant regional law establishing the regional budget for the corresponding financial year; or a local law of the same kind. Funds also could be granted from a reserve fund (federal, regional, or local) in case of emergency situations, armed conflicts, or execution of anti-terrorist operations. In all other cases, State aid could only be granted upon a preliminary written permission of the anti-monopoly authority, for the following goals, as provided by the Federal Law:

- support of activities of people living in the Far North and similar territories;

- carrying out of fundamental scientific research;

- protection of the environment;

- development of culture and preservation of the cultural inheritance;

- agricultural production;

- support of small enterprises engaged in high-priority activities;

- social services provided for the population; and

- social support of jobless citizens.

685. The Sub-Federal Governments of the Russian Federation generally provided the same forms of State support to industrial production sectors as did the Federal Government. Such support was mostly aimed at the financial rehabilitation of enterprises, resolution of social problems, and reimbursement of losses. For details, he referred to the Notifications on Industrial Subsidies Granted within the Territory of the Russian Federation, circulated to Members in documents WT/ACC/RUS/52, WT/ACC/RUS/51, WT/ACC/SPEC/RUS/31 and WT/ACC/RUS/57.

686. The representative of the Russian Federation stressed that in accordance with the principles established by the budget and anti-monopoly legislation of the Russian Federation, including those related to the respective responsibilities of the Federal and Regional Authorities, the Ministry of Finance and the Federal Antimonopoly Service ensured that the subsidies provided both on Federal and Sub-Federal levels were consistent with the national legislation and international commitments of the Russian Federation. He added that, according to Order of the Government of the Russian Federation No. 1505-r of 19 October 1998 (as amended of 23 July 2001), the executive authorities of the subjects of the Russian Federation reported on a regular basis (quarterly) the forms and amounts of industrial and agricultural subsidies, granted from the regional budgets, specifying its purposes, to the Ministry of Economic Development of the Russian Federation, the Ministry of Finance of the Russian Federation and the Ministry of Agriculture of the Russian Federation. This allowed the Federal Authorities to control the conformity of the subsidies, granted by the regional governments, with all Federal legislation and the obligations under international treaties of the Russian Federation.

687. Some Members of the Working Party asked to what extent loans at below market interest rates provided under Government Resolution No. 538 of 15 May 1999 "On Providing Budgetary Loans to Finance the Implementation of High-Return Contracts for Production and Supply of Products, Including Export Supplies" were contingent upon export performance, and requested clarification whether that Resolution had been repealed. Some Members of the Working Party also noted that certain subsidy programmes, such as production sharing agreements and other programmes for the automotive, farm equipment, and civil aircraft industry appeared to provide subsidies, which constituted prohibited subsidies pursuant to Article 3.1 (b) of the WTO Agreement on Subsidies and Countervailing Measures. In addition, aspects of certain rail freight tariffs, as well as programmes for the consumer goods industry and textile industry also appeared to conflict with Article 3.1 (a) of that Agreement. Members of the Working Party requested that the Russian Federation eliminate all such programmes from the date of accession.

688. The representative of the Russian Federation replied that pursuant to Government Resolution No. 538 of 15 May 1999 "On Providing Budgetary Loans to Finance the Implementation of High-Return Contracts for Production and Supply of Products, Including Export Supplies" loans equal to RUB 50.0 million had been granted from the Federal Budget to OAO "Rostselmash" in 1999. Since 2000, that Resolution had not been applied and no funds had been granted from the Federal Budget. He further stated that production-sharing agreements and the automotive programmes established under Presidential Decree No. 135 of 5 February 1998 "On Additional Measures to Attract Investments for Development of Domestic Car Making", and Government Resolution No. 413 of 23 April 1998 "On Additional Measures to Attract Investments for Development of Domestic Car Making" and the Resolution of the Government of the Russian Federation No. 166 of 29 March 2005 "On Introduction of Amendments to the Customs Tariff of the Russian Federation with Respect to the Spare Parts Imported with Aim of Industrial Assembling", Joint Order No. 73/81/58n of the Ministry of Economic Development, the Ministry of Industry and Energy of the Russian Federation and the Ministry of Finance of the Russian Federation of 15 April 2005 "On Approval of the Order, Defining the Term "Industrial Assembling" (as amended on 24 December 2010 by Joint Order No. 678/1289/184n) and Establishing Conditions for Its Application to Imports to the Territory of the Russian Federation of Car Parts for Motor Vehicles (Tariff Positions 8701 - 8705) and Their Components" were discussed in the Section "Trade-Related Investment Measures" of this Report. Regarding civil aircraft programmes, he referred to the information in the Section "Trade in Civil Aircraft" of this Report. As to the issue of certain rail freight tariffs, the representative of the Russian Federation stated that this issue, from his view, was not connected with a violation of any provision of the WTO Agreement on Subsidies and Countervailing Measures. He added that railway tariffs were addressed in the Section "Pricing Policies" of this Report.