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Agreement between the Government of Ukraine and Government of the Republic of Armenia on free trade

of October 7, 1994

The government of Ukraine and the Government of the Republic of Armenia, hereinafter referred to as "Contracting parties",

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

proceeding from the sovereign right of each state to pursue independent external economic policy,

intending to promote growth of economic activity, ensuring full employment, performance improvement and rational use of resources,

aiming to promote harmonious development and growth of world trade, elimination of barriers on the way of its development,

confirming intentions of Ukraine and the Republic of Armenia to become Contracting Parties of the General Agreement on Tariffs and Trade (GATT), sharing the purposes and the principles of GATT and in view of results of agreements and the agreements reached within the Uruguayan round of multilateral trade negotiations

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. The exception of this trade regime according to the approved nomenclature of goods is drawn up by the documents which are integral part of this agreement if Contracting Parties consider it necessary.

2. For the purposes of this agreement and for its action the goods coming from the territories of Contracting Parties are understood as the goods determined by the Rules of determination of the country of goods' origin of September 24, 1993 approved by the Decision of Council of Heads of Government of the Independent States.

Article 2

Each Contracting Party will not be:

- directly or indirectly to assess the goods getting 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;

- apply to warehousing, overload, storage, transportation of goods by origin from 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

Contracting parties in mutual trade will abstain from application of discriminatory measures, introduction of quantitative restrictions or measures equivalent to them for export and/or commodity import within this agreement.

The parties can set quantitative or other special restrictions unilaterally, but only reasonably and for strictly certain term.

These restrictions shall have exclusive nature and can be applied only in the cases provided by agreements within GATT.

The contracting party applying quantitative restrictions according to this Article shall provide whenever possible beforehand to other Contracting Party the complete information about basic reasons of introduction, forms and expected terms of application of the mentioned restrictions then consultations are appointed.

Article 4

Contracting parties will communicate on regular basis:

- about the laws and other regulations connected with economic activity including concerning trade, investments, the taxation, banking and insurance activity and other financial services, on transport and customs questions, including customs statistics.

Contracting parties without delay report each other about changes in the national legal system which can influence accomplishment of this agreement.

Authorized bodies of Contracting Parties will approve procedure for exchange of such information.

Article 5

Contracting parties recognize incompatible with this agreement purposes unfair business practice and not allow in particular, but is not exclusive, its following methods:

- agreements between the companies, the decisions made by merging of the companies and the common methods of business practice aiming to prevent or limit the competition, or to violate conditions for it in the territories of Contracting Parties;

- actions by means of which one or several companies use the dominant position, limiting the competition on all or on considerable part of the territory of Contracting Parties.

Article 6

When implementing measures of tariff and non-tariff regulation of the bilateral economic relations for exchange of statistical information, carrying out customs procedures Contracting Parties will use the single nine-digit Commodity nomenclature of foreign economic activity (Commodity Nomenclature of Foreign Economic Activity) based on the Harmonized commodity description and coding system and the Combined tariff and statistical nomenclature of the European Economic Community. At the same time for own needs Contracting Parties if necessary perform development of the Commodity nomenclature outside nine signs.

Introduction of reference copy of the Commodity nomenclature is performed on mutually agreed basis through the available representations in relevant international organizations.

Article 7

1. Contracting parties agree that observance of liberty principle of transit is the most important condition of goal achievement of this agreement and essential element of process of their connection to system of the international labor division and cooperation.

In this regard each Contracting Party will provide free transit through its territory of the goods occurring from customs area of other Contracting Party and/or the third countries and intended for customs area of other Contracting Party or any third country and will provide to exporters, importers or carriers all means, available and necessary for ensuring transit, and service on the terms of not the worst, than on what the same means and services are provided to own exporters, importers or carriers of any third state.

2. The procedure and conditions of passing of loads on the territory of the states are regulated according to the international Rules of transportations.

Article 8

This agreement does not interfere with the right of any of Contracting Parties to take the commonly accepted measures in the international practice which she considers necessary for protection of the vital interests or which, certainly, are necessary for accomplishment of international treaties which participant she is or intends to become if these measures concern:

information infringing on interests of national defense;

arms trade, ammunition and military equipment;

the researches or production connected with needs of defense;

the supply of materials and the equipment used in the nuclear industry;

protection of public morals, public order;

protection of industrial or intellectual property;

gold, silver or other precious metals and stones;

protection of human health, animals and plants.

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