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Business cannot take advantage of the customs warehouse regime

29/ 01/ 2021
  For more than six years in Ukraine, the customs warehouse regime has not been fully operational due to bureaucratic red tape. This regime will help Ukraine to become a regional transit hub and a convenient platform for trade with neighboring countries, and Ukrainian companies - to import goods into our country, particularly, for further re-export. With the customs warehouse regime, companies can store goods under customs control without paying customs duties and non-tariff regulation measures for up to three years. Although the customs warehousing is enshrined in the Customs Code and its functioning is common international practice, unfortunately, Ukrainian business cannot take advantage of this regime as it does not work. The reason is that the declaration type IM-74 (customs warehouse) is not included in the list of customs declarations types used by banks to complete currency control over the operations of entrepreneurs. This, in turn, significantly complicates the businesss ability to fully use the customs warehouse regime and store goods there for up to three years. For many years, the European Business Association has been emphasizing the need to include the IM-74 type declaration in this list, which would allow customs warehouses to work properly and use Ukraines transit potential. To do this, it is necessary to amend the Instruction approved by the Resolution of the National Bank. Viktoriia Kulykova. EBA Consumer Electronics Committee Manager. The launch of full-fledged operation of customs warehouses will unlock g the international logistics, transit, and trade potential of Ukraine. Besides, it will contribute to the formation of warehouses for the consolidation of goods for resale to EU markets. For multinational companies, this can be an additional incentive to sell goods in the markets of neighboring countries, rather than reorienting trade flows from Ukraine to other countries. The development of transit traffic is an issue of great importance for Ukraine. Therefore, the EBA addressed an official appeal to the leadership of the National Bank, the Ministry of Finance, the State Tax and State Customs Services of Ukraine to resume dialogue on this issue and speed up the necessary changes to legislative regulations and automated accounting systems of customs declarations and exchange of information between regulatory authorities. We hope the government authorities will draw due attention to this issue!   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

For more than six years in Ukraine, the customs warehouse regime has not been fully operational due to bureaucratic red tape. This regime will help Ukraine to become a regional transit hub and a convenient platform for trade with neighboring countries, and Ukrainian companies – to import goods into our country, particularly, for further re-export.

With the customs warehouse regime, companies can store goods under customs control without paying customs duties and non-tariff regulation measures for up to three years. Although the customs warehousing is enshrined in the Customs Code and its functioning is common international practice, unfortunately, Ukrainian business cannot take advantage of this regime as it does not work.

The reason is that the declaration type IM-74 (customs warehouse) is not included in the list of customs declarations types used by banks to complete currency control over the operations of entrepreneurs. This, in turn, significantly complicates the business’s ability to fully use the customs warehouse regime and store goods there for up to three years.

For many years, the European Business Association has been emphasizing the need to include the IM-74 type declaration in this list, which would allow customs warehouses to work properly and use Ukraine’s transit potential. To do this, it is necessary to amend the Instruction approved by the Resolution of the National Bank.

Viktoriia Kulykova EBA Consumer Electronics Committee Manager
The launch of full-fledged operation of customs warehouses will unlock g the international logistics, transit, and trade potential of Ukraine. Besides, it will contribute to the formation of warehouses for the consolidation of goods for resale to EU markets. For multinational companies, this can be an additional incentive to sell goods in the markets of neighboring countries, rather than reorienting trade flows from Ukraine to other countries.

The development of transit traffic is an issue of great importance for Ukraine. Therefore, the EBA addressed an official appeal to the leadership of the National Bank, the Ministry of Finance, the State Tax and State Customs Services of Ukraine to resume dialogue on this issue and speed up the necessary changes to legislative regulations and automated accounting systems of customs declarations and exchange of information between regulatory authorities. We hope the government authorities will draw due attention to this issue!

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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