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Agreement between the Government of the Russian Federation and Government of Ukraine on free trade

of June 24, 1993

(as amended on on October 4, 2001)

The government of the Russian Federation and the Government of Ukraine which are hereinafter referred to as - Contracting parties,

considering the multilateral agreement about coordination of works on questions of export control of raw materials, materials, the equipment, technologies and services which can be used for creation of weapons of mass destruction and rocket means of its delivery of July 26, 1992,

aiming at development of trade and economic cooperation between the Russian Federation and Ukraine on the basis of equality and mutual advantage,

proceeding from the sovereign right of each state to pursue independent external economic policy and to provide accomplishment of the corresponding international obligations and realization of the proclaimed intentions,

intending to promote creation of single commodity market, services, the capitals and labor power,

agreed as follows:

Article 1

1. Contracting parties do not apply the customs duties, taxes and fees having equivalent action for export and/or commodity import, one of Contracting Parties coming from customs area and intended for customs area of other Contracting Party. Withdrawals from this trade regime according to the approved nomenclature of goods are drawn up by the separate documents which are integral part of this agreement. At the same time Contracting Parties will approve step-by-step reducing the withdrawals provided by the specified documents.

2. For the purposes of this agreement and for its action the goods coming from the territory of Contracting Parties are understood as goods:

and / completely made in the territory of Contracting Parties

and/or

/ undergone to processing in the territory of Contracting Parties with use of raw materials, materials and components origin from the third countries, and changed with respect thereto accessory on classification of the Commodity nomenclature of foreign economic activity / Commodity Nomenclature of Foreign Economic Activity/, the tariff and statistical nomenclature of the European Economic Community based on the Harmonized Commodity description and coding system and Combined, proceeding from the four first signs

and/or

in / made with use specified in the Item of raw materials, materials and components provided that their aggregate value does not exceed the fixed share of export price of implementable goods.

Detailed rules of goods origin will be drawn up by Contracting Parties the separate document which will be integral part of this agreement.

Article 2

Contracting parties will not be:

directly or indirectly to assess the goods falling under action of this agreement, the internal taxes or charges exceeding the corresponding taxes or charges which assess the similar goods of internal production or goods coming from the third countries;

enter concerning the import or commodity export falling under action of this agreement, any special restrictions or requirements which in similar situation are not applied to similar goods of internal production or goods by origin from the third countries;

apply to warehousing, overload, storage, transportation of goods by origin of their other Contracting Party, and also payments and payment transfer of the rule others, than those which are applied in similar cases to own goods or goods by origin from the third countries.

Article 3

1. Contracting parties will abstain from application of quantitative restrictions or measures equivalent to them for export and/or commodity import within this agreement.

2. The quantitative restrictions mentioned in Item 1 of this Article can be established unilaterally reasonably and for strictly certain term only in cases:

acute shortage of these goods in the domestic market - before stabilization of the situation in the market;

acute shortage of paying balance - before stabilization of the situation with paying balance;

if any goods are imported on the territory of one of Contracting Parties in such increased quantities or on such conditions which cause or threaten to cause damage to domestic manufacturers of the similar or directly competing goods;

for the purpose of implementation of measures, stipulated in Article 4 this agreements.

3. The quantitative restrictions mentioned in Item 1 of this Article can be also established according to the mutual arrangement of the Parties, and join in the annual Protocols mentioned in Item 1 of Article 1 of this agreement.

4. The contracting party applying quantitative restrictions according to Item 2 of this Article before introduction of the specified quantitative restrictions provides necessary information on the introduction reasons, forms and possible terms of application of the mentioned restrictions, and also the additional information at the request of other Contracting Party.

5. Contracting parties will aim to resolve all issues arising in connection with application of the quantitative restrictions specified in Item 2 of this Article by consultations.

6. In case of the choice of measures according to this Article Contracting Parties will give priority to those from them which exert the smallest negative impact on goal achievement of this agreement.

Article 4

Each Contracting Party will not allow re-export of goods to which export other Contracting Party from which territory there are these goods applies measures of tariff and/or non-tariff regulation. Contracting parties will establish the inventory which re-export is forbidden, will also exchange lists of goods which re-export is forbidden, will also exchange lists of goods to which measures of tariff and non-tariff regulation are applied.

Re-export of such goods to the third countries can be performed only from written consent and on the conditions determined by authorized body of the state which is country of source of these goods. In case of failure to carry out of this provision the Contracting Party which interests are violated has the right to enter unilaterally measures for regulation of commodity exportation on the territory of the Contracting Party which allowed unauthorized re-export after the prior notice of intention to enter such measures and carrying out mutual consultations. At the same time the currency earnings from such re-export returns to country of source of the corresponding goods.

For the purposes of this Article re-export is understood as commodity exportation, coming from customs area of one Contracting Party, other Contracting Party out of limits of customs area of the last, for the purpose of export to the third country.

Article 5

Contracting parties will communicate on regular basis on customs questions, including the available customs statistics. Authorized bodies of Contracting Parties will draw up the relevant document procedure for exchange of such information.

Article 6

Contracting parties will undertake measures to rapprochement of levels of rates of the customs duties applied in trade with the third countries and will hold for this purpose regular consultations.

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