Kazakhstan's accession to the WTO threatens to freeze taxes for years

Jun 07 2013 published c earnings

If Ukraine will not achieve the abolition of prohibitive import duties on confectionery to Kazakhstan's accession to WTO, the current situation can be frozen for years to come, the president of the corporation "Biscuit-Chocolate" Alla Kovalenko.

In her opinion, now, when Kazakhstan is interested to resolve any trade disputes before the WTO accession, - the best time, to secure the repeal of the prohibitive duties on confectionery, which have been established in this republic 2011 year.

"If we do not achieve cancellation fees, it will mean, Ukraine agrees, that they are not discriminatory for Ukrainian exports of confectionery products to the Kazakh market. In this case, after the accession to the WTO in the framework of multilateral procedures to achieve their cancellation will be very difficult, and the situation can can in the years ahead, because according to the norms of the WTO Kazakhstan will be able to renew their peace ", – said Alla Kovalenko.

she is convinced, that the revision of tariffs on the eve of Kazakhstan's accession to the WTO there is good reason.

"First of all, they really are discriminatory, instead of a defensive character, because their level is actually a ban on the import of certain products. As a result, the delivery of the products from Ukraine, which imposed duties, virtually stopped. Secondly, Kazakhstan during the special investigation, materials which served as the basis for establishing fees, violated the procedural rules of WTO, in particular, the investigation was of non-public nature ", – said the head of the company.

"So we thought, and we believe, that the government and all structures, negotiating with the Ukrainian side, You must be as persistent and demanding right now, seeking cancellation fees, otherwise the issue may not be resolved for a long time. To export-oriented confectionery industry developed, increase the volume of production, implementation of the budget and increased revenue, you need to constantly maintain its interests in foreign markets, in this case - in the important direction, as Kazakhstan », – Alla Kovalenko stressed.

As known, Government of Kazakhstan in September 2011 for the period of three years imposed customs duties on imports of confectionery products to protect the internal market. Fee of 30% of the customs value, but not less 0,27 euros for 1 kilo imposed on imports lollipop, filled or unfilled, toffi, caramels and other similar sweets, containing no cocoa (It was later revised in connection with the distribution of protective duties on caramel, introduced by the Russian Federation, the entire territory of the Customs Union). In regard to the import of chocolates is provided fee of 49% of the customs value, but not less 0,8 euros per kilogram. For the importation of other sugar confectionery and substitutes, containing cocoa, It provided for a fee of 39% of the customs value, but not less 0,42 euros per kilogram.

The share of Ukrainian candies in total imports in Kazakhstan was at that time about 70%. Generally, Kazakhstan is for Ukrainian confectioners second after the Russian export market. After the introduction of export duties confectionery products from Ukraine to Kazakhstan decreased by approximately 40%.

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