fbpx
Size of letters 1x
Site color
Image
Additionally
Line height
Letter spacing
Font
Embedded items (videos, maps, etc.)
 

Business needs a single official system for all information on customs updates

11/ 04/ 2022
  The European Business Association informed the leadership of the Ministry of Finance of Ukraine about the necessity to establish a single portal on customs updates on April 11 during a meeting of the EBA Customs Committee. As the central office of the State Customs Service fully resumed its work only on April 11, the EBA took the opportunity to address all current issues and problems related to the work of customs to the Ministry of Finance. However, we hope to resume dialogue online with the leadership and specialists of the State Customs Service directly. The biggest problem for businesses now is the lack of a centralized official source for prompt notifications of all changes in the customs sphere. Unfortunately, regional customs may interpret the new rules differently and require different packages of documents, which is why companies do not understand how to conduct customs clearance. Resolutions №236 and №330 and the proposed rules of simplified customs clearance raise many questions. The situation is also complicated by the fact that some specialists of companies and specialists of the State Customs Service are in evacuation and they have to process cargo registration and communicate with each other remotely. Also, there is no unified approach and clear information in open sources on how to apply simplifications, how to fill in declarations, etc. The Ministry of Finance stressed that Resolution №330 has not yet entered into force, so it is necessary to follow the provisions of Resolution №236. Last week, the relevant clarification of the central office of the State Customs Service was provided to all regional customs. Besides, on April 5, Law №2142-IX came into force that provides benefits to companies using the simplified taxation system. Another important issue discussed was the list of critical imports. The approved list of critical imports, which has not been updated since March 28, is a major obstacle to foreign trade. Current restrictions on critical imports are effectively paralyzing foreign economic activity. We understand that this was a forced emergency step aimed at preventing the outflow of foreign currency abroad. However, we hope that the time has come to significantly ease these restrictions. We are grateful to the Ministry of Finance for its willingness to support business in the dialogue with the Ministry of Economy and the National Bank on the liberalization of currency restrictions. Sometimes companies cannot know in advance what imported parts will fail to sustain production processes. Besides, international companies can import not only goods but also services, such as repairing equipment or machinery. In addition, the availability of such a list makes foreign trade operations more time-consuming due to additional control actions by banks. In addition, it is necessary to provide clear explanations to banks that if there is a 4-digit UKT FEA code in the list, then all goods imported under such a code are subject to currency restrictions. The issue of non-tariff regulation was also raised as it is described differently in Resolutions №236 and №330. Thus, under the provisions of Regulation №330, non-tariff regulation remains for those companies that will switch to a simplified system of customs clearance that implies also tax simplifications. Meanwhile, non-tariff regulation is not provided for those with the standard method of customs clearance. According to the business community, this approach is unfair to companies that for one reason or another will not be able to move to a simplified system of customs clearance. Therefore, business proposes to abolish non-tariff regulation for the period of martial law for all goods, regardless of which method of customs clearance they choose - standard or simplified. Business also has problematic cases with goods that were imported before February 24, for which there was a delay in payments, and which are now not included in the list of critical imports. However, they also cannot be cleared through the old procedure, as the issuance of licenses and other permits has been suspended. Business understands that at that time the changes have been adopted hastily so they are not ideal and can cause such collisions. Therefore, there is hope that the problems of individual companies and industries will be resolved at the level of the Resolution of the Cabinet of Ministers, as the Government currently has such an opportunity to quickly change the rules of non-tariff regulation. We also discussed the legal consolidation of the ban on imports from the russian federation by Resolution 426 of April 9, 2022. In fact, trade with russia has been suspended since 2014, but there was no legal ban. Currently, the Resolution prohibits the import of goods from the russian federation into the customs territory of Ukraine under the customs regime. Accordingly, business has concerns about whether such a ban would mean the need to provide a certificate of origin for all goods imported into Ukraine. Therefore, there are questions about the interpretation of this prohibition and the peculiarities of the implementation of this Resolution. We hope that the Ministry of Finance will assist in obtaining the relevant clarification from the Ministry of Economy, which will be extremely relevant for business, customs authorities, and banks, in order to prevent ambiguity in this interpretation. The Ministry of Finance promised to help businesses establish effective communication with the State Customs Service. All updates and clarifications can be united in a special section on the website of the State Customs Services. In this way, businesses can refer to such a source when filling out a declaration or communicating with regional customs. The EBA will also send a list of problematic issues that need to be resolved. We are glad that the Ministry of Finance is extremely interested in resuming business, listens carefully, and considers all comments from companies. We will be sure to pass on our proposals and problem cases and look forward to further fruitful communication in the working mode to resolve them. Many thanks to Denys Uliutyn, Yuri Draganchuk, and especially Alexander Moskalenko for their time and attention to the problems and issues that arise in business as a result of russian aggression.

The European Business Association informed the leadership of the Ministry of Finance of Ukraine about the necessity to establish a single portal on customs updates on April 11 during a meeting of the EBA Customs Committee.

As the central office of the State Customs Service fully resumed its work only on April 11, the EBA took the opportunity to address all current issues and problems related to the work of customs to the Ministry of Finance. However, we hope to resume dialogue online with the leadership and specialists of the State Customs Service directly.

The biggest problem for businesses now is the lack of a centralized official source for prompt notifications of all changes in the customs sphere. Unfortunately, regional customs may interpret the new rules differently and require different packages of documents, which is why companies do not understand how to conduct customs clearance. Resolutions №236 and №330 and the proposed rules of simplified customs clearance raise many questions.

The situation is also complicated by the fact that some specialists of companies and specialists of the State Customs Service are in evacuation and they have to process cargo registration and communicate with each other remotely. Also, there is no unified approach and clear information in open sources on how to apply simplifications, how to fill in declarations, etc.

The Ministry of Finance stressed that Resolution №330 has not yet entered into force, so it is necessary to follow the provisions of Resolution №236. Last week, the relevant clarification of the central office of the State Customs Service was provided to all regional customs. Besides, on April 5, Law №2142-IX came into force that provides benefits to companies using the simplified taxation system.

Another important issue discussed was the list of critical imports. The approved list of critical imports, which has not been updated since March 28, is a major obstacle to foreign trade. Current restrictions on critical imports are effectively paralyzing foreign economic activity. We understand that this was a forced emergency step aimed at preventing the outflow of foreign currency abroad. However, we hope that the time has come to significantly ease these restrictions. We are grateful to the Ministry of Finance for its willingness to support business in the dialogue with the Ministry of Economy and the National Bank on the liberalization of currency restrictions. Sometimes companies cannot know in advance what imported parts will fail to sustain production processes. Besides, international companies can import not only goods but also services, such as repairing equipment or machinery. In addition, the availability of such a list makes foreign trade operations more time-consuming due to additional control actions by banks. In addition, it is necessary to provide clear explanations to banks that if there is a 4-digit UKT FEA code in the list, then all goods imported under such a code are subject to currency restrictions.

The issue of non-tariff regulation was also raised as it is described differently in Resolutions №236 and №330. Thus, under the provisions of Regulation №330, non-tariff regulation remains for those companies that will switch to a simplified system of customs clearance that implies also tax simplifications. Meanwhile, non-tariff regulation is not provided for those with the standard method of customs clearance. According to the business community, this approach is unfair to companies that for one reason or another will not be able to move to a simplified system of customs clearance. Therefore, business proposes to abolish non-tariff regulation for the period of martial law for all goods, regardless of which method of customs clearance they choose – standard or simplified. Business also has problematic cases with goods that were imported before February 24, for which there was a delay in payments, and which are now not included in the list of critical imports. However, they also cannot be cleared through the old procedure, as the issuance of licenses and other permits has been suspended.

Business understands that at that time the changes have been adopted hastily so they are not ideal and can cause such collisions. Therefore, there is hope that the problems of individual companies and industries will be resolved at the level of the Resolution of the Cabinet of Ministers, as the Government currently has such an opportunity to quickly change the rules of non-tariff regulation.

We also discussed the legal consolidation of the ban on imports from the russian federation by Resolution 426 of April 9, 2022. In fact, trade with russia has been suspended since 2014, but there was no legal ban. Currently, the Resolution prohibits the import of goods from the russian federation into the customs territory of Ukraine under the customs regime. Accordingly, business has concerns about whether such a ban would mean the need to provide a certificate of origin for all goods imported into Ukraine. Therefore, there are questions about the interpretation of this prohibition and the peculiarities of the implementation of this Resolution. We hope that the Ministry of Finance will assist in obtaining the relevant clarification from the Ministry of Economy, which will be extremely relevant for business, customs authorities, and banks, in order to prevent ambiguity in this interpretation.

The Ministry of Finance promised to help businesses establish effective communication with the State Customs Service. All updates and clarifications can be united in a special section on the website of the State Customs Services. In this way, businesses can refer to such a source when filling out a declaration or communicating with regional customs. The EBA will also send a list of problematic issues that need to be resolved.

We are glad that the Ministry of Finance is extremely interested in resuming business, listens carefully, and considers all comments from companies. We will be sure to pass on our proposals and problem cases and look forward to further fruitful communication in the working mode to resolve them. Many thanks to Denys Uliutyn, Yuri Draganchuk, and especially Alexander Moskalenko for their time and attention to the problems and issues that arise in business as a result of russian aggression.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Start
in the Telegram bot
Read articles. Share in social networks

Spelling error report

The following text will be sent to our editors: