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Accepted by the Decision of Council of Heads of Government of the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation and the Republic of Tajikistan of February 17, 2000, No. 72

The protocol on the mechanism of application of special protective, anti-dumping and countervailing measures in trade of the State Parties of the Customs union

(Protocol as amended of October 28, 2003)

The government of the Republic of Belarus, the Government of the Republic of Kazakhstan, the Government of the Kyrgyz Republic, the Government of the Russian Federation and the Government of the Republic of Tajikistan which are hereinafter referred to as with the Parties

being guided by agreements on the Customs union and bilateral agreements on free trade of the State Parties of the Customs union, and also considering provisions of the Agreement on the Customs union and the Common economic space of February 26, 1999,

for the purpose of the approved application of special protective, anti-dumping and countervailing measures concerning commodity import in mutual trade and in trade with the third countries,

wishing to provide protection of national production, creation of the conditions promoting development of the competition between national and foreign producers, and also increase in competitiveness of national products

aiming to minimize losses of the State Parties of the Customs union (further in the text - the State Parties) from the applied measures for protection of the domestic market and national producers of products,

being guided by the commonly accepted regulations and the principles of international law,

agreed as follows.

Article 1

For the purposes of the this Protocol the following basic concepts are used:

essential (material, serious) damage of industry of national economy - the considerable general deterioration of the situation of industry of national economy confirmed with proofs which occurred owing to the increased import to customs area of the State Party of the similar or directly competing goods, either dumped imports of such goods, or the commodity import subsidized by the respective State Party or the third countries and is expressed, in particular, in production reduction of such goods, reducing its domestic sale of the State Party, decrease in profitability of production of such goods, delay of development of industry of national economy of the State Party, negative impact on trade inventories, employment of the population, the salary level, general investment activity and other indicators;

material damage of industry deterioration of the situation of industry of national economy which occurred owing to dumping or subsidized commodity import and is expressed to national ekonomikipodtverzhdennoa by proofs, in particular, in production reduction of similar goods in the State Party and amount of its domestic sale of the State Party, decrease in profitability of production of such goods, negative impact on trade inventories, employment, the salary level, level of investments into this industry of national economy;

serious damage of industry of national economy - essential deterioration in production, trade and financial position of industry of national economy which occurred owing to the increased commodity import and is expressed in general deterioration in situation in production of directly competing goods in the State Party;

threat of causing essential (material, serious) damage of industry of national economy - the obvious inevitability of causing confirmed with proofs essential (material, serious) damage of industry of national economy;

industry of national economy - producers of the similar or directly competing goods in any industries of economy of the State Party;

the similar or directly competing goods - goods which are classified by the same code of the Commodity nomenclature of foreign economic activity of the Commonwealth of Independent States and are completely identical to other goods or are comparable to it on the functional purpose, application, quality and technical characteristics and on other main properties in such a way that the buyer replaces or are ready to replace with such goods other goods in the course of consumption;

special protective measures - measures for restriction of commodity importation for customs area of one of the State Parties for free circulation in its domestic market which are applied by the Party by means of introduction of quantitative restrictions of import or the special duty, including the temporary special duty;

the special duty - duty which is applied in case of introduction of special protective measures and is levied by authorized body of the State Party over base rate of import customs duty;

anti-dumping measures - measures for restriction of dumped imports of goods which are applied by the Party by means of introduction of anti-dumping duty, including temporary anti-dumping duty, or adoption of price obligations;

anti-dumping duty - duty which is applied in case of introduction of anti-dumping measures and is levied by authorized body of the State Party over base rate of import customs duty;

dumped imports - commodity import on export price are lower than its normal cost;

countervailing measures - measures for restriction of the commodity import subsidized by one of the State Parties or the third countries which are applied by the Party by means of introduction of the compensatory duty, including the temporary compensatory duty, or adoption of price obligations;

the compensatory duty - duty which is applied in case of introduction of countervailing measures and is levied by authorized body of the State Party over base rate of import customs duty.

Article 2

Determine that:

special protective measures can be entered in the form of quantitative restrictions of commodity import or in the form of the special duties;

anti-dumping measures can be entered in the form of anti-dumping duties or adoption of price obligations;

countervailing measures can be entered in the form of the compensatory duties or adoption of price obligations, for the term necessary for elimination essential (material, serious) damage or threat of causing essential (material, serious) damage according to provisions of the this Protocol and (or) the national legal system of the State Parties.

Article 3

In case commodity import on the territory of the state of one of the Parties is performed in such quantities and on such conditions which cause essential (material, serious) damage or create threat of causing essential (material, serious) damage of industry of national economy, this Party can apply after the investigation made according to the national legal system special protective, anti-dumping or countervailing measures to this commodity import.

For the purpose of ensuring protection of the domestic markets of the State Parties the Commission on protection of the domestic markets under Integration Committee is created (further - the Commission).

Article 4

If one of the Parties intends to apply special protective, anti-dumping or countervailing measures to commodity import from the third countries, then this Party shall beforehand, but not later than 30 days before the planned introduction of measure, to inform on it other Parties and to offer carrying out consultations.

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