The Ukrainian government at a meeting on Wednesday approved the procedure for applying safeguard measures regarding imports of passenger cars to Ukraine (tariff heading 8703) from the European Union (EU) meeting the provisions of Article 44 of the Ukraine-EU Association Agreement. The procedure was proposed by the Economic Development and Trade Ministry.

An Interfax-Ukraine correspondent has reported that the draft resolution was passed without discussion.

The Economic Development and Trade Ministry earlier said that the duty can be imposed if imports of passenger cars from the EU for the last 12 month period reaches 45,000, and their share of the Ukrainian car market exceeds 20% (for the second year after the date of entry into force of the Agreement with gradual increase to 25%).

The condition for imposing the duty is imports of passenger cars from the EU exceeding all primary registrations of passenger cars for the last 12 month period and causing serious injury to the domestic industry.

The ministry said that in 2015 imports of passenger cars from the EU to Ukraine totaled 38,900 cars and in January-September 2016 – 30,600 cars.

"Thus, if in September 2017, for example, the number of imported passenger cars to Ukraine reaches 45,000 and other conditions are met, after consultations with the EU Ukraine would have a chance to increase imports duty to 10% for the period until the end of 2017," the ministry said.

According to the Association schedule, the imports duty rate on passenger cars from EU (new with engines of more than 1,500 cubic centimeters and no more than 2,200 cubic centimeters) in 2017 would be 8.2%, the safeguard duty cannot exceed 1.8% respectively.