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Inspection in a new way

26/ 01/ 2017

Author: Valentyn Gvozdiy, Managing Partner at GOLAW

Since 1st January 2017 inspection in companies in Ukraine be conducted  with new rules. The law “On basic principles of state control in the sphere of economic activity” (№1726 amended law of 3 November 2016) provides the following innovations:

  • By the end of 2017 the State Regulatory Service (SRS) should create and run automated system of state supervision.
  • All regulatory agencies will be required to make their plans of inspections public as well as their results. In particular, state agencies are required to specify the purpose of the inspection, and verification of the inspected entity.
  • Failure to submit information would result in administrative responsibility.
  • All controllers are required to confirm their plans not quarterly, but once a year without the right to make changes.
  • Unscheduled inspections now require their coordination with the SRS and authorization for their conduct.
  • Now State Regulatory Service has the right to check the complaints of business legitimacy of all regulatory agencies.

These measures allow obscuring and assessing the quality of the regulatory authorities’ work. In addition, any company will be able to know in advance and prepare for the inspection.

Who is affected by the law?

In particular, the scope of the law on state control principles includes:

  • State Fiscal Service of Ukraine (except customs control at the border).
  • Departments of  the State Architectural and Construction Inspection.
  • Labor law compliance supervisors.

Interestingly, that the State Labour Service of Ukraine was the only organization that refused to coordinate their actions with DRS|, as mentioned the head of state regulatory services. On this basis, will be drawn up a protocol.

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