Additional import charge

Dentons, Kyiv, Ukraine, 
Thu, Feb 26, 2015

The Law of Ukraine on Measures to stabilize the balance of payments of Ukrainein accordance with Article XII of the General Agreement on Tariffs and Trade1994 №73-VIII was adopted by the Verkhovna Rada of Ukraine on December 28,2014.

The Law provides that it shall take effect upon publication of the decision ofthe Cabinet of Ministers of Ukraine about completed consultations withinternational financial institutions. Appropriate Resolution of the Cabinet ofMinisters of Ukraine "On completion of consultations with internationalfinancial institutions regarding the implementation of temporary measures tostabilize the balance of payments of Ukraine" of February 16, 2015 №119-рwas officially published in Uriadovyi Kurier (the Government's gazette) fromFebruary 25, 2015 No. 35. The Law comes into effect on 25 February 2015.

The Law, in particular, establishes a temporary—for a period of 12months—introduction of an additional import charge to goods imported into thecustoms territory of Ukraine under the customs regime of import, regardless ofcountry of origin of the goods and signed by Ukraine free trade agreements(contracts), at the following rates:

• 10 percent for products classified in product groups 1-24 according to the Ukrainian classification of goods for foreign economic activities (food, live animals, trees and plants, cereals, seeds, fats and oils, alcohol and tobacco, etc.);
• 5 percent for products classified in product groups 25-97 according to the Ukrainian classification of goods for foreign economic activities (goods industry group, non-food raw materials, automobiles, pharmaceuticals, etc.);
• 10 percent for goods imported (sent) by persons subject to tax and import duty under Article 374 of the Customs Code of Ukraine (goods (excluding excise) total invoice value of which exceeds the equivalent of €1,000 imported by persons on the territory of Ukraine in hand baggage and / or accompanied baggage through checkpoints across the state border of Ukraine which are open to air traffic and goods (excluding excise), the total invoice value of which exceeds the equivalent of €500 and total weight exceeding 50 kg imported by persons on the territory of Ukraine in hand and / or accompanied baggage through means other than open to air traffic, checkpoints across the state border of Ukraine, as well as goods the total invoice value of which exceeds the equivalent of €150 transported (sent) to the customs territory of Ukraine to one recipient in a dispatch from one sender in international mail, international express mail, or unaccompanied luggage).

It is envisaged that additional import chargesshall not apply to essential commodities imports such as oil, gas, coal,gasoline and diesel, gratis goods under international agreements and some othergoods.