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U.S. Lifts All 100% Duty Rates on Ukrainian Imports Imposed Due to IPR Violations, Etc.

The Office of the U.S. Trade Representative (USTR) has issued a press release announcing that the U.S. is lifting the 100% retaliatory duty rates that have been imposed since 2002 on imports of certain fuel oils, fertilizers, pigments, footwear, diamonds, etc. from the Ukraine.

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The USTR states that it is lifting these retaliatory duty rates in recognition of the efforts that the Ukrainian government has made to improve its legislative framework to protect intellectual property rights (IPR).

USTR to Also Reconsider 2001 Suspension of Ukraine's GSP Benefits, Etc.

The USTR has also announced that it will be conducting a Special 301 out-of-cycle review to focus on Ukraine's IPR enforcement and consider Ukraine's eligibility for Generalized System of Preferences (GSP) benefits and its status as a Priority Foreign Country.

(In August 2001, the USTR suspended Ukraine's GSP benefits. In March 2001, the USTR designated Ukraine as a Priority Foreign Country in the Special 301 process and initiated a Section 301 investigation (which eventually led to the imposition of these 100% retaliatory duty rates on certain Ukraine exports). See ITT's Online Archives or 08/10/01 news, 01081015, for BP summary.)

List of Ukraine Products That Are No Longer Subject to 100% Duty Rates

According the USTR press release and USTR sources, as a result of its decision to lift its retaliation, Ukrainian products classified under the following tariff numbers are no longer subject to 100% duty rates, effective for goods entered, or withdrawn from warehouse, for consumption on or after August 30, 20051:

HTS Number2Product Description (for Informational Purposes Only)
2710.19.05Distillate and residual fuel oils (including blended fuel oils) testing under 25 degrees A.P.I.
2710.19.10Distillate and residual fuel oils (including blended fuel oils) testing 25 degrees A.P.I. or more
2710.99.05Wastes of distillate and residual fuel oils (whether or not blended) testing under 25 degrees A.P.I.
2710.99.10Wastes of distillate and residual fuel oils (whether or not blended) testing 25 degrees A.P.I. or more
2804.29.00Rare gases, other than argon
2825.60.00Germanium oxides and zirconium dioxide
2849.20.10Carbides of silicon, crude
2849.20.20Carbides of silicon, in grains, or ground, pulverized, or refined
3105.51.00Other mineral or chemical fertilizers, containing nitrates/phosphates
3206.11.00Pigments and preparations based on titanium dioxide containing 80% or more by weight of titanium dioxide calculated on the dry matter
3206.19.00Pigments and preparations based on titanium dioxide containing less than 80% by weight of titanium dioxide calculated on the dry matter
4804.51.00Other uncoated, unbleached kraft paper and paperboard, in rolls or sheets, weighing 225g/m2 or more
6403.99.60Other footwear with outer soles of rubber, plastics, or composition leather and uppers of leather, for men, youths, and boys
6403.99.75Other footwear with outer soles of rubber, plastics, or composition leather and uppers of leather, for persons (other than men, youths, or boys), valued not over $2.50/pair
6403.99.90Other footwear with outer soles of rubber, plastics, or composition leather and uppers of leather, for persons (other than men, youths, or boys), valued over $2.50/pair
6404.19.35Other footwear with outer soles of rubber or plastics and uppers of textile materials, with open toes or open heels, or of the slip-on type
7102.10.00Diamonds, unsorted
7102.31.00Diamonds, nonindustrial, unworked or simply sawn, cleaved, or bruted
7102.39.00Diamonds, nonindustrial, worked, but not mounted or set
7115.10.00Catalysts in the form or wire cloth or grill, of platinum
7402.00.00Unrefined copper; copper anodes for electrolytic refining
7601.20.90Other unwrought aluminum alloys
8418.69.00Other refrigerating or freezing equipment; heat pumps, other than the air-conditioning machines of HTS 8415

1According to USTR sources, notice of the lifting of these retaliatory duties effective August 30, 2005 as described above, will soon be published in the Federal Register.

2Although these are 2002 HTS numbers, they appear to be unchanged in the 2005 HTS at the 8-digit level. Ukraine products subject to the 100% duty rates were also required to be identified by HTS Chapter 99 tariff numbers 9903.27.01 - 9903.27.15.

3The USTR has previously stated that the above product descriptions are for informational purposes only; the descriptions are not intended to delimit in any way the scope of the products covered. Instead, the scope is governed by the tariff numbers listed.

(The U.S. had imposed 100% retaliatory duties, effective for goods entered, or withdrawn from warehouse, for consumption on or after January 23, 2002, due to Ukraine's failure to enact legislation to curtail its piracy of sound recording and optical media (e.g., CDs, CD-ROMs, DVDs), including unauthorized licensing and production. (See ITT's Online Archives or 12/26/01news, 01122615, for BP summary.)

USTR press release (dated 08/31/05) available at http://www.ustr.gov/Document_Library/Press_Releases/2005/August/USTR_Lifts_Tariff_Sanctions_Against_Ukraine,_Announces_Out-of-Cycle_Review.html.