INVESTIGATION PROGRESS

Date Status
02 Jul 2011 Initiation

IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 13 Mar 2013 | Removal date: 11 Oct 2015
Still in force

Safeguard

On July 2nd, 2011, the Ukrainian authorities started a safeguard investigation on imports of motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars with spark-ignition internal combustion engine and crank gear of a cylinder capacity exceeding 1000 cm3 but not exceeding 2200 cm3 (WTO Document, G/SG/N/6/UKR/9, 15.07.2011).
The products subject to investigation are classified under the following HS codes: 8703.2210 (cylinder capacity exceeding 1000 cm3 but not exceeding 1500 cm3) and 8703.1910 (cylinder capacity exceeding 1500 cm3 but not exceeding 2200 cm3).
The investigation was initiated following the application lodged by the Association of the Ukrainian Carmakers "UkrAvtoprom" on behalf of national producers of the subject goods.

According to the UN Comtrade Database, in 2010 the following countries exported goods classified under HS code subheading 8703.22 to Ukraine with a trade value over the GTA threshold of USD 1 million: Germany, Turkey, Japan, Romania, Russia, South Korea, Spain, the United Kingdom of Great Britain and Northern Irelan, Hungary, India, France, Uzbekistan, Italy, Czech Republic, Poland, China and the Netherlands.
No data are available in the UN Comtrade Database for HS code subheading 8703.19 (cylinder capacity exceeding 1500 cm3 but not exceeding 2200 cm3). However, if we consider goods classified under HS code subheading 8703.23 (cylinder capacity exceeding 1500 cm3 but not exceeding 3000 cm3), the following countries might also be affected according to the GTA methodology: the United States of America, Slovakia, Belgium, Mexico, Slovenia and Sweden.

On March 21st, 2013, the Ukrainian authorities notified to the WTO their decision to impose a definitive safeguard duty on imports of motor cars (WTO Documents, G/SG/N/8/UKR/3, G/SG/N/10/UKR/3 and G/SG/N/11/UKR/1, 25.03.2013). The rate of the duty is 6.46% for goods classified under HS code 8703.2210 and 12.95% for goods classified under HS code 8703.2319 (HS code 8703.1910 is no longer mentioned). This measure entered into force 30 days after the publication of the Notice in the 'Uryadovyi Currier', i.e. on April 13th, 2013, and is applicable for a period of three years.

On March 28th, 2014, the Ukrainian authorities notified to the WTO their decision to gradually liberalise the definitive safeguard duty imposed on imports of motor cars (WTO Documents, G/SG/N/8/UKR/3/Suppl.1, G/SG/N/10/UKR/3/Suppl.2 and G/SG/N/11/UKR/1/Suppl.1, 31.03.2014). The rate of the duty is for goods classified under HS code 8703.2210 is decreased to 4.31% after 12 months and to 2.15% after 24 months. The rate of the duty is for goods classified under HS code 8703.2319 is decreased to 8.63% after 12 months and to 4.32% after 24 months. This measure entered into force on March 28th, 2014.

On February 27th, 2015, the Ukrainian authorities notified to the WTO their decision to exclude from the scope of the above-mentioned safeguard measure motor cars with hybrid power system (WTO Documents, G/SG/N/8/UKR/3/Suppl.2, G/SG/N/10/UKR/3/Suppl.3 and G/SG/N/11/UKR/1/Suppl.2, 27.02.2015). Reason for this decision is that the non-application of the measure for those cars will not have any negative impact on the domestic producers and that Ukraine's national interests require the non-application of this measure concerning motor cars with hybrid power system. This modification entered into force on February 14th, 2015.
 
On 30 September 2015, the Ukrainian authorities terminated the above definitive duty. The duty was terminated following the implementation of the recommendations by the Dispute Settlement Body, case "Ukraine - Cars" (DS468).

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc

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