On 5 July 2018, the Ukrainian parliament adopted amendments to the Customs Code of Ukraine which introduce a “single window” mechanism and optimize control procedures at customs (the “Amendments”). The Amendments shall reduce the time needed for goods crossing the Ukrainian border to clear customs, simplify customs clearance procedures and, generally, improve the investment attractiveness of Ukraine./br

The main advantages brought by the Amendments are as follows:

1.       Introduction of a “single window” mechanism at customs to promote a unified platform for the exchange of documents and information among declarants, customs authorities and other state agencies authorized to exercise control over goods crossing the Ukrainian border, including phytosanitary, veterinary, ecology, radiology and other agencies;

2.       Elimination of bureaucratic rules requiring declarants to file with the customs authorities various permits and licenses issued by Ukrainian state agencies in paper form - such permits and licenses should now be issued in electronic form and filed by the respective state agencies through the “single window” mechanism making them available to the customs authorities automatically;

3.       Reduction of time needed for customs clearance to 2 hours, during which time the customs authorities perform all types of control procedures based on a documentary review - the specialists from other regulatory agencies (e.g. phytosanitary, veterinary agencies, etc.) are invited to assist with customs control only if relevant risks are identified;

4.       Introduction of a “silent approval” principle which prescribes that in case if a decision to admit or refuse the admittance of goods into the customs territory of Ukraine is not registered through the “single window” within statutory terms, then the customs clearance should be finished and the goods should be admitted without such decision.

The Amendments are yet to be signed by the President of Ukraine and will enter into force the day following official publication. The state agencies will have a 180-day transition period in order to start full-scale use of the “single window” mechanism.

Authors:

Olexander Martinenko, Senior Partner, olexander.martinenko@cms-cmno.com

Viktoriia Stavchuk, Associate, viktoriia.stavchuk@cms-cmno.com