On 28 April 2012, the Interdepartmental Commission on International Trade of Ukraine (the “Commission”) adopted a decision to impose a special duty on vehicles imported into Ukraine, which becomes effective on 13 April 2013.
The Commission argues that importing foreign vehicles has a significant adverse effect on local producers. The special duty imposed by the Commission applies regardless of the currently effective import duty. In particular, the Commission introduced special duties on vehicles with engine volumes of 1,000-1,500 cubic centimeters at a rate of 6.46% of their cost, and for 1,500-2,200 cubic centimeters at a rate of 12.95% of their cost.
This special duty was proposed as a result of a special investigation into the import of vehicles, which was initiated by the Commission and carried out by the Ministry of Economic Development and Trade of Ukraine.
The Сommission anticipates that the duty will positively facilitate the renovation of Ukraine's domestic auto output and expand the number of jobs.
However, the imposition of the special duty may be viewed as incompliant with Ukraine’s obligations to the World Trade Organization. Although it is possible under the WTO rules to suspend certain obligations, other WTO members are still entitled to challenge the legitimacy of such suspension and/or introduce counter measures.