11/ 05/ 2012

New edition of the Customs Code of Ukraine, which will enter into force on 1 June 2012, allows companies to get partial tax relief for the goods imported in a temporary admission regime.

The previous version of the Customs Code was not fully harmonised with the Convention on Temporary Admission implemented by Ukraine on 24 March 2004 in terms of goods taxation in the regime of temporary admission.

In particular, the previous Customs Code envisaged the list of goods, which were allowed to be temporary imported into Ukraine with a tentative full tax relief. In the absence of other rules and guidelines set, the temporary import of goods that were not listed in the Article 206 was taxed similar to that for goods that were imported for free use in import regime. Such situation caused considerable inconveniences in terms of taxation for businesspeople.

In this regard, the EBA called for the necessity to fix statutory possibility to get partial tax relief for the goods temporary imported into Ukraine which are not fully relieved from taxation. The existence of such procedure would allow paying only the fixed part of taxes used for certain period of temporary import.

Currently, the new edition of the Customs Code contains clear provision concerning the abovementioned problem, namely the article 106 “Goods, which can be placed to temporary import customs regime with partial tax relief from customs duties”. From now on, this provision establishes the conditions of partial exemption from customs payments, i.e. customs duties rates, mechanism of their estimation and calculation as well as the terms of its paying off.

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