Currency Regulation and Financial Services

26/ 10/ 2012

The Resolution of the Board of the National Bank of Ukraine On Amendments to the Instruction on the Procedure of Controlling over the Export, Import Transactions No 364 as of 31 August 2012 enabled the withdrawal of foreign economic operations from currency control without the hard copies of the cargo clearance declarations (hereinafter- CCD), but using electronic registry only. Background: EBA members which use electronic form of declarations faced the fact that the absence of paper originals CCDs led to the complication of removing commercial banks’ foreign operations of currency controls, and prevented the purchase of currencies for payments with foreign partners. Despite the fact that with the entry into force of the Customs Code of Ukraine the State Customs Service of Ukraine (hereinafter - SCSU) implemented a procedure of declaration, customs control and clearance of goods using the CCD in electronic form, the banks in Ukraine continued to demand paper copies of returns for exchange control purposes, as it was envisaged by the regulations of the National Bank of Ukraine (hereinafter - the Bank). The Association held a series of meetings with the authorities and sent a number of position papers concerning the need for legislative changes in the electronic declaration sphere. The EBA has always stressed that the lack of possibility to use online form of customs declaration causes additional costs to importers and creates technical barriers to trade. So now we are pleased to announce that the Resolution of the Board of the NBU No 364 as of 31 August 2012 amends the paragraph 3.3 of Chapter 3, Instruction on monitoring the export, import transactions No 136 approved by the Bank on 24 March 1999, according to which starting from 5 October authorized banks are eligible to withdraw the foreign economic transactions from currency control without providing copies of the CCD, but using electronic registry only. However, some of the currency control issues related to the goods processing, faced by the member companies of the Association, their re-exports from customs licensing warehouses still exist. We will continue to work on them to protect the legitimate interests of our members. Therefore, we expect that soon the updated version of the Instruction on the Procedure of Controlling over the Export, Import Transactions will be published with the proposals of business community.

The Resolution of the Board of the National Bank of Ukraine “On Amendments to the Instruction on the Procedure of Controlling over the Export, Import Transactions” No 364 as of 31 August 2012 enabled the withdrawal of foreign economic operations from currency control without the hard copies of the cargo clearance declarations (hereinafter- CCD), but using electronic registry only.

Background: EBA members which use electronic form of declarations faced the fact that the absence of paper originals CCDs led to the complication of removing commercial banks’ foreign operations of currency controls, and prevented the purchase of currencies for payments with foreign partners. Despite the fact that with the entry into force of the Customs Code of Ukraine the State Customs Service of Ukraine (hereinafter – SCSU) implemented a procedure of declaration, customs control and clearance of goods using the CCD in electronic form, the banks in Ukraine continued to demand paper copies of returns for exchange control purposes, as it was envisaged by the regulations of the National Bank of Ukraine (hereinafter – the Bank).

The Association held a series of meetings with the authorities and sent a number of position papers concerning the need for legislative changes in the electronic declaration sphere. The EBA has always stressed that the lack of possibility to use online form of customs declaration causes additional costs to importers and creates technical barriers to trade.

So now we are pleased to announce that the Resolution of the Board of the NBU No 364 as of 31 August 2012 amends the paragraph 3.3 of Chapter 3, “Instruction on monitoring the export, import transactions” No 136 approved by the Bank on 24 March 1999, according to which starting from 5 October authorized banks are eligible to withdraw the foreign economic transactions from currency control without providing copies of the CCD, but using electronic registry only.

However, some of the currency control issues related to the goods processing, faced by the member companies of the Association, their re-exports from customs licensing warehouses still exist. We will continue to work on them to protect the legitimate interests of our members.

Therefore, we expect that soon the updated version of the Instruction on the Procedure of Controlling over the Export, Import Transactions will be published with the proposals of business community.

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