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The agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on movement of goods within cooperation in development of space and creation and operation space-rocket and rocketry

of February 11, 2001

The Cabinet of Ministers of Ukraine and the Government of the Russian Federation which are hereinafter referred to as by the Parties

aiming to create favorable conditions for development of scientific and technical and production cooperation between the organizations and the companies of space-rocket and rocket industries of both countries for the benefit of cooperation in different areas of research and use of space and joint activities in the field of defense and conversion programs,

in view of the Agreement between the Government of Ukraine and the Government of the Russian Federation on cooperation in the field of creation and operation space-rocket and rocketry of February 8, 1995 (further - the Agreement of February 8, 1995),

in view of the Agreement between the Government of Ukraine and the Government of the Russian Federation on cooperation in the field of research and use of space in the peace purposes of August 27, 1996 (further - the Agreement of August 27, 1996),

noting that the cooperation between Ukraine and the Russian Federation which is subject of the agreements stated above and other arrangements concluded in execution of their provisions assumes broad mutual exchange of goods,

wishing to promote the conclusion of mutually advantageous agreements and achievement of arrangements for the purpose of assistance to mutual exchange of goods in the field of development of space and creation and operation space-rocket and rocketry,

agreed as follows:

Article 1. Coverage

The cooperation within this agreement is performed according to the legislation of the states of the Parties, with observance of regulations and the principles of international law and without prejudice to accomplishment of obligations by the Parties according to other international treaties and arrangements which participants are their states.

Article 2. Determinations

For the purposes of this agreement:

the term "goods" means spacecrafts and carrier rockets, their elements, rocketry, the corresponding components and spare parts, and also any subject, natural or artificial substance or the material delivered or the made product necessary for start implementation, including the control and test equipment, technologies in the type of information and data fixed on material carriers which are necessary for their creation, production or application. This term designates also other information and data in any material form, including:

- computer software and databases;

- inventions;

- developmental and technical developments;

- know-how, including the manufacturing documentation and technical characteristics;

- data on research, experimental, developmental and engineering and design project developments;

the term "transit" means movement on the conditions provided by this agreement, goods from the territory of the state of one Party through the territory of the state of other Party for their subsequent import in the third countries or their movement from the territory of the third countries through the territory of the state of one Party on the territory of the state of other Party.

Article 3. Purposes of coordinated policy

1. This agreement is signed with the providing purpose on the basis of reciprocity of favorable conditions on which movement of goods for the benefit of cooperation between the Russian Federation and Ukraine in research and use of space, creation and operation space-rocket and rocketry within the Agreement of February 8, 1995 and the Agreement of August 27, 1996, and also the agreements and arrangements concluded in execution of their provisions will be performed.

2. Goods, held for use within cooperation in the areas specified in Item 1 of this Article in case of their import and/or their export are not subject to taxation by duties and taxes which collection is within the competence of customs authorities of the Russian Federation and Ukraine except as specified, in relation to which other is provided in this agreement.

Article 4. Priority scope of privileges

Priority scope of the privileges provided by this agreement are the joint activities performed within budget programs and projects of the Russian Federation and Ukraine.

Article 5. Other scopes of privileges

1. The privileges on payment of duties and taxes provided by this agreement are applied also to the goods imported and/or exported within:

- non-paid deliveries, in particular, for the purposes of determination of the possible new directions of cooperation in the different fields of development of space and application space-rocket and rocketry;

- the joint innovative activities connected, in particular, with conversion use of the missile and space equipment and industrial application of the collateral technological results received during the research and use of space, and assuming, among other things, carrying out special researches, preparation of feasibility statements, implementation of pilot projects and pilot developments.

2. Application of the privileges provided by this agreement does not cause damage to practice of the conclusion of contracts in connection with provision of services on commercial space starts and application in appropriate cases of the market principles regarding the prices and conditions of such services for the benefit of the international customers as it can follow from agreements and arrangements which participants are the states of the Parties.

Article 6. Transit

For the purpose of ensuring transit of the goods moved on the terms and conditions of this agreement the Parties agreed that:

- transit of goods delivered within this agreement by rail is performed on conditions which are applied to domestic transports;

- rates for transit of goods any kind of transport, including rates for handling works, and also customs duties for customs escort of goods shall be economically reasonable;

- crossing by goods in transit and vehicles of borders of the states of the Parties transporting them is made in the places determined by customs authorities of each of the states of the Parties in coordination with the relevant departments;

- customs authorities of the states of the Parties exchange lists of places of crossing by goods in transit and vehicles of borders of their states;

- customs authorities of the states of the Parties exchange samples of means of identification, and also the documents necessary for control of goods in transit and vehicles.

Article 7. Excise taxes

The privileges on customs payment provided by this agreement do not extend to the goods which are subject to taxation by the excise taxes.

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