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Business welcomes the adaptation of certain provisions of the Customs Code of Ukraine to the EU norms

23/ 08/ 2024
  On August 22, the Verkhovna Rada passed the Draft Law of Ukraine On Amendments to the Customs Code of Ukraine Regarding the Implementation of Certain Provisions of the European Union Customs Code (No. 10411) in its entirety. It is worth noting that the European Business Associations business community welcomes this document, as the adopted changes allow domestic businesses to adapt to the updated rules in the field of foreign economic activity and ensure a smooth transition from the current to the new Customs Code of Ukraine. The next significant change in Ukraines customs legislation will be the adoption of a new Customs Code of Ukraine, which will be fully based on the EU Customs Code. Moreover, the adopted changes bring Ukraine closer to the full application of European Union customs legislation and effectively complete the implementation of the main part of EU customs law (EU acquis) into Ukrainian legislation. So, what does the draft law specifically provide for? The provisions include: Introducing the concept of customs representation, similar to what operates in EU countries, with a distinction between direct and indirect representation, and the division of responsibilities and liabilities between the foreign economic activity entity and its customs representative. A gradual transition for businesses engaged in foreign economic activities to an authorization system, similar to the one in the EU, within 18 months: establishing a unified system of criteria and conditions for customs brokers, customs warehouse operators, temporary storage warehouses, and others for all customs authorizations. Implementing the European model of customs warehouse types and expanding the range of services. Expanding opportunities for AEOs (Authorized Economic Operators) to confirm the adequacy of their financial status. Introducing the European approach to the application of customs regimes. Aligning the provisions of the Customs Code of Ukraine with EU regulations regarding the delivery, presentation of goods, and their storage under customs control. Abolishing the need to call a customs officer for the movement of goods between different authorized facilities of a company (for example, between a customs warehouse and an authorized consignor or consignee within the same company premises). Developing post-clearance control and combining it with customs audit measures. Improving provisions related to the protection of intellectual property rights during the movement of goods across Ukraines customs border. Additionally, to enhance the anti-corruption component in customs authorities, the following measures are being introduced: Publishing anonymized decisions on the official website of the State Customs Service within three days of their adoption following the review of appeals. Granting customs authorities the right to exchange information on the customs value of goods in electronic form according to international standards with customs authorities of foreign countries. During the preparation of the draft law for the second reading, several initiatives and clarifications were added in consultation with businesses and the public, including: Granting priority to companies with AEO status in terms of first arrival and border crossing, including through the use of electronic queue information systems. Separating the responsibilities of the declarant, customs regime holder, and the person responsible for paying customs duties. Introducing the European concept of storage requirements for goods under customs control: replacing the provision on the permanent customs control zone in customs warehouses with a requirement for financial guarantees for their preservation. Clarifying the list of permitted operations with goods under customs control. Clarifying provisions on the use of equivalent goods. Regulating provisions on the possibility of relinquishing goods with Ukrainian status in favor of the state. Improving provisions regarding the payment of customs clearance fees outside the location of the customs authority or outside its working hours. The proposed changes are expected to come into force six months after the official publication of the law. During this time, the Cabinet of Ministers of Ukraine and the Ministry of Finance must approve all necessary regulations. However, certain provisions, such as AEO benefits in terms of priority arrival and border crossing, as well as the exemption of all businesses from delivery deadlines to the border during the electronic queue waiting period, will take effect the day after the laws publication. The European Business Association is grateful to all the involved structures for their tremendous work and contribution to the development and adoption of this draft law!

On August 22, the Verkhovna Rada passed the Draft Law of Ukraine “On Amendments to the Customs Code of Ukraine Regarding the Implementation of Certain Provisions of the European Union Customs Code” (No. 10411) in its entirety.

It is worth noting that the European Business Association’s business community welcomes this document, as the adopted changes allow domestic businesses to adapt to the updated rules in the field of foreign economic activity and ensure a “smooth” transition from the current to the new Customs Code of Ukraine. The next significant change in Ukraine’s customs legislation will be the adoption of a new Customs Code of Ukraine, which will be fully based on the EU Customs Code.

Moreover, the adopted changes bring Ukraine closer to the full application of European Union customs legislation and effectively complete the implementation of the main part of EU customs law (EU acquis) into Ukrainian legislation.

So, what does the draft law specifically provide for? The provisions include:

  • Introducing the concept of customs representation, similar to what operates in EU countries, with a distinction between direct and indirect representation, and the division of responsibilities and liabilities between the foreign economic activity entity and its customs representative.
  • A gradual transition for businesses engaged in foreign economic activities to an authorization system, similar to the one in the EU, within 18 months: establishing a unified system of criteria and conditions for customs brokers, customs warehouse operators, temporary storage warehouses, and others for all customs authorizations.
  • Implementing the European model of customs warehouse types and expanding the range of services.
  • Expanding opportunities for AEOs (Authorized Economic Operators) to confirm the adequacy of their financial status.
  • Introducing the European approach to the application of customs regimes.
  • Aligning the provisions of the Customs Code of Ukraine with EU regulations regarding the delivery, presentation of goods, and their storage under customs control.
  • Abolishing the need to call a customs officer for the movement of goods between different authorized facilities of a company (for example, between a customs warehouse and an authorized consignor or consignee within the same company premises).
  • Developing post-clearance control and combining it with customs audit measures.
  • Improving provisions related to the protection of intellectual property rights during the movement of goods across Ukraine’s customs border.

Additionally, to enhance the anti-corruption component in customs authorities, the following measures are being introduced:

  • Publishing anonymized decisions on the official website of the State Customs Service within three days of their adoption following the review of appeals.
  • Granting customs authorities the right to exchange information on the customs value of goods in electronic form according to international standards with customs authorities of foreign countries.

During the preparation of the draft law for the second reading, several initiatives and clarifications were added in consultation with businesses and the public, including:

  • Granting priority to companies with AEO status in terms of first arrival and border crossing, including through the use of electronic queue information systems.
  • Separating the responsibilities of the declarant, customs regime holder, and the person responsible for paying customs duties.
  • Introducing the European concept of storage requirements for goods under customs control: replacing the provision on the permanent customs control zone in customs warehouses with a requirement for financial guarantees for their preservation.
  • Clarifying the list of permitted operations with goods under customs control.
  • Clarifying provisions on the use of equivalent goods.
  • Regulating provisions on the possibility of relinquishing goods with Ukrainian status in favor of the state.
  • Improving provisions regarding the payment of customs clearance fees outside the location of the customs authority or outside its working hours.

The proposed changes are expected to come into force six months after the official publication of the law. During this time, the Cabinet of Ministers of Ukraine and the Ministry of Finance must approve all necessary regulations.

However, certain provisions, such as AEO benefits in terms of priority arrival and border crossing, as well as the exemption of all businesses from delivery deadlines to the border during the electronic queue waiting period, will take effect the day after the law’s publication.

The European Business Association is grateful to all the involved structures for their tremendous work and contribution to the development and adoption of this draft law!

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