Identifier
Created
Classification
Origin
09KYIV497
2009-03-19 15:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kyiv
Cable title:
UKRAINE: GOVERNMENT ANNOUNCES DECREE TO ELIMINATE
how-toVZCZCXRO4099 OO RUEHDBU RUEHLN RUEHSK RUEHVK RUEHYG DE RUEHKV #0497 0781501 ZNR UUUUU ZZH O 191501Z MAR 09 FM AMEMBASSY KYIV TO RUEHC/SECSTATE WASHDC IMMEDIATE 7487 INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC PRIORITY RUEHGV/USMISSION GENEVA PRIORITY 0173 RUCNCIS/CIS COLLECTIVE
UNCLAS KYIV 000497
SIPDIS
SENSITIVE
STATE FOR EUR/UMB, EB/TPP/BTA, EB/TPP/MTA
STATE PLEASE PASS TO USTR FOR CKLEIN, PBURKHEAD, CMORROW
USDOC FOR 4201/DOC/ITA/MAC/BISNIS
USDOC FOR 4231/ITA/OEENIS/NISD/CLUCYK
USDA FOR FAS/ONA AND FAS/OCRA
GENEVA FOR USTR
E.O.: 12958: N/A
TAGS: ETRD EFIN WTRO PGOV UP
SUBJECT: UKRAINE: GOVERNMENT ANNOUNCES DECREE TO ELIMINATE
IMPORT TARIFF SURCHARGE ON MOST PRODUCTS
REFS: A) KYIV 425
B) STATE 17765
C) KYIV 349
UNCLAS KYIV 000497
SIPDIS
SENSITIVE
STATE FOR EUR/UMB, EB/TPP/BTA, EB/TPP/MTA
STATE PLEASE PASS TO USTR FOR CKLEIN, PBURKHEAD, CMORROW
USDOC FOR 4201/DOC/ITA/MAC/BISNIS
USDOC FOR 4231/ITA/OEENIS/NISD/CLUCYK
USDA FOR FAS/ONA AND FAS/OCRA
GENEVA FOR USTR
E.O.: 12958: N/A
TAGS: ETRD EFIN WTRO PGOV UP
SUBJECT: UKRAINE: GOVERNMENT ANNOUNCES DECREE TO ELIMINATE
IMPORT TARIFF SURCHARGE ON MOST PRODUCTS
REFS: A) KYIV 425
B) STATE 17765
C) KYIV 349
1. (SBU) Senior GOU officials announced to the press on
March 18 that the Cabinet of Ministers eliminated the 13
percent import tariff surcharge recently introduced by Law
No. 923-VI (ref C),except for imported refrigerators and
cars. (Note: We assume the exceptions are HS codes 8418
and 8702-8704, although no press reports referred to
specific HS codes. End note.) The move followed
statements to us by several GOU officials that they opposed
the tariff surcharge and were attempting to reverse the
measure (ref A).
2. (U) The Cabinet of Ministers Resolution that was
apparently approved on March 18 has not yet been published,
however. Minister of Economy Bohdan Danylyshyn told the
press that the tariff surcharge would be eliminated 10 days
after publication of the Resolution. Volodymyr Baluta,
head of the Ministry of Economy's WTO Department, told us
on March 19 that he expected the Resolution to be published
within a few days.
3. (SBU) PM Yulia Tymoshenko announced that the GOU would
simultaneously introduce a draft law to the Rada
(parliament) to cancel the tariff surcharge entirely.
(Comment: It is not clear why the GOU would eliminate the
tariff surcharge on some products through a Cabinet of
Ministers Resolution, but on others through a law. End
comment.) In fact, Our Ukraine MP Mykola Katerynchuk
already submitted a draft law (No. 4206) to this effect on
March 16.
Comment: A Caveat
--------------
4. (SBU) Post cautions that, while the Cabinet of Ministers
is apparently attempting to repeal the tariff surcharge, at
least for the majority of goods, the government's legal
authority to do so is not clear. The Constitution clearly
states that only the Rada may alter import tariffs, so it
is possible that an affected Ukrainian producer could seek
a court injunction against the Cabinet of Ministers
Resolution on the grounds that it, and the clause in Law
No. 923-VI that purportedly grants the Cabinet of Ministers
such authority, violate the Constitution. We therefore
intend to encourage Ukrainian officials to support a draft
law that fully and unequivocally repeals the import tariff
surcharge. End comment.
TAYLOR
SIPDIS
SENSITIVE
STATE FOR EUR/UMB, EB/TPP/BTA, EB/TPP/MTA
STATE PLEASE PASS TO USTR FOR CKLEIN, PBURKHEAD, CMORROW
USDOC FOR 4201/DOC/ITA/MAC/BISNIS
USDOC FOR 4231/ITA/OEENIS/NISD/CLUCYK
USDA FOR FAS/ONA AND FAS/OCRA
GENEVA FOR USTR
E.O.: 12958: N/A
TAGS: ETRD EFIN WTRO PGOV UP
SUBJECT: UKRAINE: GOVERNMENT ANNOUNCES DECREE TO ELIMINATE
IMPORT TARIFF SURCHARGE ON MOST PRODUCTS
REFS: A) KYIV 425
B) STATE 17765
C) KYIV 349
1. (SBU) Senior GOU officials announced to the press on
March 18 that the Cabinet of Ministers eliminated the 13
percent import tariff surcharge recently introduced by Law
No. 923-VI (ref C),except for imported refrigerators and
cars. (Note: We assume the exceptions are HS codes 8418
and 8702-8704, although no press reports referred to
specific HS codes. End note.) The move followed
statements to us by several GOU officials that they opposed
the tariff surcharge and were attempting to reverse the
measure (ref A).
2. (U) The Cabinet of Ministers Resolution that was
apparently approved on March 18 has not yet been published,
however. Minister of Economy Bohdan Danylyshyn told the
press that the tariff surcharge would be eliminated 10 days
after publication of the Resolution. Volodymyr Baluta,
head of the Ministry of Economy's WTO Department, told us
on March 19 that he expected the Resolution to be published
within a few days.
3. (SBU) PM Yulia Tymoshenko announced that the GOU would
simultaneously introduce a draft law to the Rada
(parliament) to cancel the tariff surcharge entirely.
(Comment: It is not clear why the GOU would eliminate the
tariff surcharge on some products through a Cabinet of
Ministers Resolution, but on others through a law. End
comment.) In fact, Our Ukraine MP Mykola Katerynchuk
already submitted a draft law (No. 4206) to this effect on
March 16.
Comment: A Caveat
--------------
4. (SBU) Post cautions that, while the Cabinet of Ministers
is apparently attempting to repeal the tariff surcharge, at
least for the majority of goods, the government's legal
authority to do so is not clear. The Constitution clearly
states that only the Rada may alter import tariffs, so it
is possible that an affected Ukrainian producer could seek
a court injunction against the Cabinet of Ministers
Resolution on the grounds that it, and the clause in Law
No. 923-VI that purportedly grants the Cabinet of Ministers
such authority, violate the Constitution. We therefore
intend to encourage Ukrainian officials to support a draft
law that fully and unequivocally repeals the import tariff
surcharge. End comment.
TAYLOR