Ukraine is Introducing EU Norms into its Customs Code

The comprehensive law, spanning about 150 pages, marks a significant step towards the full application of EU customs norms in Ukraine.

Key Points

• Adoption of Draft Law No. 10411:

  • The law is aimed at aligning Ukraine's customs legislation with that of the European Union (EU).
  • It completes the implementation of the main part of EU customs law (EU acquis) into Ukrainian legislation.

• Upcoming Changes:

  • The next major change will be the adoption of a new Customs Code of Ukraine, fully based on the EU Customs Code.
  • This will allow domestic businesses to adapt to updated foreign economic activity rules and smoothly transition to the new Customs Code.

Main Changes Proposed by the Draft Law

1. Customs Representation:

   • Introduction of customs representation, similar to the EU, dividing representation into direct and indirect forms.
   • Clarification of duties and responsibilities between foreign economic activity subjects and their customs representatives.

2. Transition to EU-Aligned Systems:

   • Gradual transition (within 18 months) to a system of authorizations similar to the EU.
   • Introduction of a unified system of criteria and conditions for customs brokers, warehouse keepers, and other customs-related entities.

3. European Model of Customs Warehouses:

   • Expansion of the types of customs warehouses and the list of permitted operations.

4. Opportunities for Authorized Economic Operators (AEOs):

   • Expansion of opportunities for AEOs to confirm their financial stability, even with negative net assets.

5. European Customs Regimes:

   • Introduction of a European approach to the application of customs regimes.

6. Compliance with EU Regulations:

   • Alignment of Ukraine's customs provisions with EU regulations on the delivery, presentation, and storage of goods under customs control.

7. Simplification of Goods Movement:

   • Elimination of the need for customs officer presence during the movement of goods between enterprise facilities with different authorizations.

8. Post-Customs Control and Audit:

   • Development of post-customs control and its integration with customs audit activities.

Additional Clarifications and Initiatives

1. Priority for AEOs:

   • AEOs will receive priority in state border crossing and arrival, with the use of electronic queue information systems.

2. Separation of Duties:

   • Clear separation of duties for the declarant, customs regime holder, and persons responsible for customs payments, aligned with the Tax Code of Ukraine.

3. Customs Control of Goods:

   • Replacement of the permanent customs control zone requirement with a financial guarantee for goods preservation in customs warehouses.

4. Improved Authorization Provisions:

   • Enhancements to the provisions on granting authorizations for customs regimes and related processes.

Implementation Timeline

• General Provisions:

  • The changes will take effect 6 months after the official publication of the law.
  • The Cabinet of Ministers and the Ministry of Finance are tasked with approving necessary by-laws within this period.

• Immediate Provisions:

  • Certain aspects, such as AEO priority in border crossing and exceptions from delivery terms when using electronic queues, will be effective the day after the law's publication.