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Safeguard measures on passenger cars



 

1. Ukraine may apply a safeguard measure in the form of a higher import duty on passenger cars originating4 from the EU Party under tariff heading 8703 (hereinafter referred to as the "product"), as defined in Article 45 [of this Agreement], consistent with the provisions of this Section, if each of the following conditions is met:

 

(a) if as a result of the reduction or elimination of a customs duty under this Agreement, the product is being imported into the territory of Ukraine in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause serious injury to a domestic industry producing a like product;

 

(b) if the aggregate volume (in units)5 of imports of the product in any year exceeds the trigger level set out in its Schedule included in Annex II [to this Agreement]; and

 

3 For the purposes of this Article, the determination of developing country shall take into consideration the lists issued by international organisations such as the World Bank, the Organisation for Economic Co-operation and Development (hereinafter referred to as the "OECD") or the International Monetary Fund (hereinafter referred to as the "IMF), etc.

4 According to the definition of origin laid down in the Protocol 1of this Agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation.

5 As evidenced by Ukraine statistics on imports of passenger cars originating in the EU Party (in units) under the tariff heading 8703. Ukraine will substantiate these statistics by making available the


 

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(c) if the aggregate volume of imports of the product into Ukraine (in units)6 for the last 12-month period ending not earlier than the penultimate month before Ukraine invites the EU Party for consultations in line with paragraph 5 [of this Article] below exceeds the trigger percentage set out in the Schedule of Ukraine in Annex II of all new registrations7 of passenger cars in Ukraine for the same period.

 

2. The duty under paragraph 1 [of this Article] shall not exceed the lesser of the prevailing MFN applied rate, or the MFN applied rate of duty in effect on the day immediately preceding the date this Agreement enters into force, or the tariff rate set out in the Schedule of Ukraine in Annex II [to this Agreement]. The duty can only be applied for the remainder of that year as defined in Annex II [to this Agreement].

 

3. Without prejudice to paragraph 2 [of this Article], the duties Ukraine applies under paragraph 1 [of this Article] shall be set according to the Schedule of Ukraine in Annex II [to this Agreement].



 

4. Any supplies of the product in question which were en route on the basis of a contract entered into before the additional duty is imposed under paragraphs 1 to 3 [of this Article] shall be exempt from any such additional duty. However, such supplies will be counted in the volume of imports of the product in question during the following year for the purpose of meeting the conditions set out in paragraph 1 [of this Article] for that year.

 

5. Ukraine shall apply any safeguard measure in a transparent manner. To this end, Ukraine shall, as soon as possible, provide written notification to the EU Party of its intention to apply such a measure and provide all the pertinent information, including the volume (in units) of imports of the product, the total volume (in units) of imports of passenger cars of any source and the new registrations of passenger cars in Ukraine for the period referred to in paragraph 1 [of this Article]. Ukraine shall invite the EU Party for consultations as far in advance of taking such measure as practicable in order to discuss this information. No measure shall be adopted for 30 days following the invitation for consultations.

 

6. Ukraine may apply a safeguard measure only following an investigation by its competent authorities in accordance with Articles 3 and 4(2)(c) of the Agreement on Safeguards and to this end, Articles 3 and 4(2)(c) of the Agreement on Safeguards are incorporated into and made part of this Agreement, mutatis mutandis. Such investigation must prove that as a result of the reduction or elimination of a customs duty under this Agreement, the product is being imported into the territory of Ukraine in such increased quantities, in absolute terms or relative to domestic

 

 

movement certificates EUR.1 or invoice declarations issued according to the procedure laid down in Title V of the Protocol 1concerning the definition of the concept of "originating products" and methods of administrative cooperation.

 

6 As evidenced by Ukraine statistics on imports of passenger cars originating in the EU Party (in units) under the tariff heading 8703. Ukraine will substantiate these statistics by making available the certificates EUR.1 or invoice declarations issued according to the procedure laid down in Title V of the Protocol 1concerning the definition of the concept of "originating products" and methods of administrative cooperation.

7 Official statistics on "First registration" in Ukraine of all passenger cars provided by State Automobile Inspection of Ukraine.


 

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production, and under such conditions as to cause serious injury to a domestic industry producing a like product.

 

7. Ukraine shall immediately notify the EU Party in writing of the initiation of an investigation described in paragraph 6 [of this Article].

 

8. During the investigation Ukraine shall comply with the requirements of Article 4.2(a) and (b) of the Agreement on Safeguards and to this end, Article 4.2(a) and (b) of the Agreement on Safeguards is incorporated into and made part of this Agreement, mutatis mutandis.

 

9. The relevant factors related to the injury determination in Article 4.2(a) of the Agreement on Safeguards shall be evaluated for at least three consecutive periods of 12 months, i.e. a minimum of three years in total.

 

10. The investigation shall also evaluate all known factors, other than increased preferential imports under this Agreement, that may be causing injury at the same time to the domestic industry. Increased imports of a product originating in the EU Party shall not be considered to be the result of the elimination or the reduction of a customs duty, if imports of the same product from other sources have increased to a comparable extent.

 

11. Ukraine shall inform the EU Party and all interested parties in writing of the findings and reasoned conclusions of the investigation well in advance of the consultations referred to in paragraph 5 [of this Article] with a view to reviewing the information arising from the investigation and exchanging views on the proposed measures during the consultations.

 

12. Ukraine shall ensure that the statistics on passenger cars that are used as evidence for such measures are reliable, adequate and publicly accessible in a timely manner. Ukraine shall provide without delay monthly statistics on the volume (in units) of imports of the product, the total volume (in units) of imports of passenger cars of any source and the new registrations of passenger cars in Ukraine

 

13. Notwithstanding paragraph 1 [of this Article] during the transition period, the provisions of paragraphs 1(a) and 6 to 11 [of this Article] shall not apply.

 

14. Ukraine shall not apply a safeguard measure under this Section during year one. Ukraine shall not apply or maintain any safeguard measure under this Section or continue any investigation to that effect after year 15.

 

15. The implementation and operation of this Article may be the subject of discussion and review in the Trade Committee.

 

 

Article 45

 

Definitions

 

For the purposes of this Section and Annex II [to this Agreement]:


 

 

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1. "the product" means only passenger cars originating in the EU Party and falling under tariff heading 8703 in accordance with the rules of origin established in Protocol 1 [to this Agreement] concerning the definition of the concept of ‘originating products’ and methods of administrativ e cooperation;

 

2. “serious injury” shall be understood in accordan ce with Article 4.1(a) of the Agreement on Safeguards. To this end, Article 4.1(a) is incorporated into and made a part of this Agreement, mutatis mutandis;

 

3. "like product" shall be understood to mean a product which is identical, i.e. alike in all respects to the product under consideration, or in the absence of such a product, another product which although not alike in all respects, has characteristics closely resembling those of the product under consideration;

 

4. “transition period” means a 10-year period begin ning on the date this Agreement enters into force. The transition period will be extended for three more years, if before the end of the year 10 Ukraine has presented a reasoned request to the Trade Committee referred to in Article 465 of this Agreement and the Trade Committee has discussed it;

 

5. "year one" means the 12 month period beginning on the date this Agreement enters into force;

 

6. "year two" means the 12 month period beginning on the first anniversary of the entry into force of this Agreement;

 

7. "year three" means the 12 month period beginning on the second anniversary of the entry into force of this Agreement;

 

8. "year four" means the 12 month period beginning on the third anniversary of the entry into force of this Agreement;

 

9. "year five" means the 12 month period beginning on the fourth anniversary of the entry into force of this Agreement;

 

10. "year six" means the 12 month period beginning on the fifth anniversary of the entry into force of this Agreement;

 

11. "year seven" means the 12 month period beginning on the sixth anniversary of the entry into force of this Agreement;

 

12. "year eight" means the 12 month period beginning on the seventh anniversary of the entry into force of this Agreement;

 

13. "year nine" means the 12 month period beginning on the eighth anniversary of the entry into force of this Agreement;

 

14. "year ten" means the 12 month period beginning on the ninth anniversary of the entry into force of this Agreement;

 

15. "year eleven" means the 12 month period beginning on the tenth anniversary of the entry into force of this Agreement;


 

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16. "year twelve" means the 12 month period beginning on the eleventh anniversary of the entry into force of this Agreement;

 

17. "year thirteen" means the 12 month period beginning on the twelfth anniversary of the entry into force of this Agreement;

 

18. "year fourteen" means the 12 month period beginning on the thirteenth anniversary of the entry into force of this Agreement;

 

19. "year fifteen" means the 12 month period beginning on the fourteenth anniversary of the entry into force of this Agreement.

 

Section 3

 

 

Article 45 bis

 

Non Cumulation

 

Neither Party may apply, with respect to the same product, at the same time:

 

(a) a safeguard measure in accordance with Section 2 (Safeguard Measures on Passenger Cars) of this Chapter; and

 

(b) a measure under Article XIX of GATT 1994 and the Agreement on Safeguards.

 

Section 4

 





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