Starting from November, the import and export declaration regime will change in the country
From November 7, 2023, by the Plan for harmonizing Ukraine’s customs legislation with EU customs legislation, significant changes will take place in the conditions of customs control and clearance for both import and export goods. In particular, companies that did not manage to obtain the simplifications and benefits provided by the Ukrainian Customs Code or the Convention on Common Transit (AEO – Authorized Economic Operator status) before November 7, 2023, will be required to present their goods to customs. This means that goods will need to be delivered to the customs control zone of the respective customs offices where customs clearance is conducted. Import declarations of the EA type, which allowed customs clearance to be completed without delivering goods to customs, will be canceled! Additionally, provisions that allowed export goods to be exempt from customs presentation will be removed from the Customs Code.
At the same time, it should be noted that the number of companies receiving simplifications is growing very slowly. Many companies, especially those affected by the war and destruction, struggle to meet the criteria required to obtain this status (including financial requirements, the need to change accounting systems, which is a costly procedure, etc.).
This situation could imply that the majority of goods will undergo full inspections. However, it seems that the customs service and terminals are not fully prepared for such a volume of inspections simultaneously, both due to infrastructure limitations and human resources constraints. Therefore, the country may face significant queues at the borders.
Taking into account the clear unpreparedness of the existing customs terminal infrastructure, which is not designed to handle a significant increase in the number of trucks simultaneously in the customs control zones, as well as the significant cost of services provided by commercial customs terminals (for storage), experts from the EBA have repeatedly emphasized the need to establish additional customs control zones in each region on state-owned territories to ensure free customs control.
At the same time, the business community has been working on changes to the Procedure for obtaining simplifications provided for in the Resolution of the Cabinet of Ministers of Ukraine No. 1092, “Certain Issues of Implementing the Provisions of the Customs Code of Ukraine on Authorizations.” Therefore, we hope that the adoption of these changes (which simplify the procedure for obtaining AEO status) will significantly increase the number of companies that can benefit from these simplifications. Therefore, on behalf of the European Business Association, we call on the Government to adopt these changes to Resolution No. 1092 of the Cabinet of Ministers as soon as possible. Association experts have been advocating for several years for simplifying the requirements related to the financial stability criteria of the applicant company and the requirements for information retention.
In addition, we thank the State Customs Service for inviting us to the upcoming seminar as part of the dialogue on the practical implementation of legislation related to granting enterprises the AEO status, authorizations for applying simplifications provided in the Customs Code of Ukraine, and transit simplifications. This seminar is scheduled for September 20, 2023. We hope that by that date, the changes to Resolution 1092 will be adopted, and the Association’s proposals for creating additional state customs control zones in each region will be supported. Furthermore, we sincerely invite the leadership of the State Customs Service to a meeting with the business community and look forward to continuing the dialogue.