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Agreement:
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Year:
To
Dispute number:

Russian federation — Recycling Fee on Motor Vehicles

 

Current status

Panel established, but not yet composed

Key facts

Short title: Russia — Motor Vehicles
Complainant: European Union
Respondent: Russian Federation
Third Parties: Brazil; China; India; Japan; Korea Republic of; Norway; Turkey; Ukraine; United States
Agreements cited:
(as cited in request for consultations)
GATT 1994 Art. I1, II1(a), II1(b), III2, III4Trade-Related Investment Measures (TRIMs) Art. 2.1, 2.2
Request for Consultations received: 9 July 2013
Panel Report circulated:
Appellate Body Report circulated:

Summary of the dispute to date 

The summary below was up-to-date at 12 December 2013

Consultations

Complaint by the European Union. (See also DS463)

On 9 July 2013, the European Union requested consultations with the Russian Federation regarding Russia's measures relating to a charge, the so‑called “recycling fee”, imposed on motor vehicles.

The legal instruments cited by the European Union include:

  • Federal Law No. 89-FZ on production and consumption wastes, as amended by Federal Law No. 128-FZ; and,
     
  • Resolution of the Government of the Russian Federation No. 870 of 30 August 2012 on recycling fee for wheeled transport vehicles.

According to the European Union, the Russian Federation imposes the recycling fee only on imported motor vehicles. Under certain conditions, domestic vehicles, as well as vehicles imported from Belarus and Kazakhstan, are exempted from the fee. In contrast, there is no exemption from the fee for vehicles imported from the European Union.

The European Union also argues that the structure of the recycling fee has a detrimental impact on imported vehicles as compared with relevant domestic vehicles, because the fee is progressive and differentiates between “new vehicles” and “vehicles produced more than 3 years ago”.

The European Union claims that the measures appear to be inconsistent with:

  • Articles I:1, II:1(a), II:1(b), III:2 and III:4 of the GATT 1994; and
     
  • Article 2.1 and 2.2 of the TRIMs Agreement.

On 18 July 2013, the United States requested to join the consultations. On 19 July 2013, China and Japan requested to join the consultations. On 22 July 2013, Turkey and Ukraine requested to join the consultations.  Subsequently, the Russian Federation informed the DSB that it had accepted the requests of China, Japan, Turkey, Ukraine and the United States to join the consultations.

On 11 October 2013, the European Union requested the establishment of a panel.  At its meeting on 22 October 2013, the DSB deferred the establishment of a panel.

 

Panel and Appellate Body proceedings

At its meeting on 25 November 2013, the DSB established a panel. China, India, Japan, Korea, Norway, Turkey, Ukraine and the United States reserved their third-party rights.  Subsequently, Brazil reserved its third-party rights.