International Trade. Ukraine

An Expert's View about Trade Policy and Regulations in Ukraine

Posted on: 19 Mar 2012

ITF presents major research findings that address the challenges facing the international trade and capital market sectors

For public distribution International Trade. Ukraine Investment and Trade Foundation in cooperation with Cai & Lenard Law fi rm, Ukraine 2010 1 International Trade. Ukraine ACKNOWLEDGMENTS This paper has been produced under the Investment and Trade Foundation?s Programme on International Trade De- velopment in cooperation with Cai & Lenard Law fi rm. ITF presents major research fi ndings that address the chal- lenges facing the international trade and capital market sectors. For more information about ITF?s researches, visit our website at For more information about Cai & Lenard Law Firm, visit the Firm?s website at ITF welcomes feedback and comments on this document. These can be forwarded to the ITF Expert Committee at expert [at] Copyright © ITF, 2010. Readers are encouraged to quote and reproduce this material for educational, non-profi t purposes, provided the source is acknowledged. The views expressed in this publication are those of the author(s) and do not necessarily refl ect the views of ITF or the funding institutions. 2 International Trade. Ukraine TABLE OF CONTENTS ABOUT THE INVESTMENT Export Taxes AND TRADE FOUNDATION a. Export Duties INTERNATIONAL TRADE b. Value Added Tax Ukrainian Defi nition Exports Restrictions and Controls Licensing Requirements. Overview OTHER CUSTOMS REGIMES FOREIGN TRADE CONTRACT Transit Applicable Law Temporary Import (Export) Payment Instruments Toll Manufacturing Foreign-Exchange Controls Customs Licensed Warehouse CUSTOMS REGULATIONS TRADE DEFENSE REMEDIES General Issues Overview Documentation and Procedures a. Legislation Intellectual Property Rights in Foreign Trade b. Competent Authorities c. Participation of Interested Parties IMPORT d. Terms Overview e. Judicial Review Import Requirements and Documentation a. Registration of Importers ANTI-DUMPING b. Documentation a. Anti-Dumping Investigation c. Declaration of Customs Value b. Stages of the Procedure c. Anti-Dumping Measures Prohibited and Restricted Imports Labeling and Marking Requirements COUNTERVAILING MEASURES Standards and Certifi cation a. Initiation of the Investigation a. Standards Organizations b. Investigation Procedure b. Conformity Assessment c. Accreditation SAFEGUARD a. Initiation of the Investigation CUSTOMER SUPPORT b. Investigation Procedure Import Taxes c. Safeguard Measures a. Value-Added Tax b. Customs Duties Anti-Discrimination Investigations c. Excise Duties Free Trade Agreements and Trade Defense Remedies d. Corporate Profi t Tax e. Customs Processing Fees DISPUTE RESOLUTION f. Payments Litigation in Ukrainian Public Courts International Commercial Arbitration EXPORT Enforcement of Awards of Foreign Arbitration Tribunals and Registration of Exporters Foreign Courts www www.c- International Trade. Ukraine ABOUT THE INVESTMENT AND TRADE FOUNDATION The Investment and Trade Foundation (ITF) is a non-governmental research organization. ITF develops and implements research projects that respond to the needs of society for an independent viewpoint on key issues of international trade and fl ow of capital. ITF conducts research at the request of government agencies, businesses, and foreign donors that employs legal and economic knowledge to resolve strategic issues of business management, as well as the evaluation of government regulations from the viewpoint of their effect on business and investment decisions. This paper presents an analysis of the current legal environment for foreign trade in Ukraine and assists to improve understanding of the regulation of foreign trade in Ukraine, and facilitates the adoption of more coherent decisions. 4 International Trade. Ukraine INTERNATIONAL TRADE Long live equality! Protectionism, or the Three Aldermen by Frédéric Bastiat UKRAINIAN DEFINITION As a rule, any activity contemplating foreign participation is classifi ed as ?foreign economic activity,? 1 and is therefore subject to a specifi c legislative regime . According to the 1991 Law of Ukraine ?On Foreign Economic Activities? this activity includes the import and export of goods, works, services and capital; ser- vicing of foreign businesses; scientifi c activity and training of personnel; international fi nancial operations and securities trading; credit and fi nancial operations and the creation of corresponding institutions; joint entrepreneurial activity; wholesale, retail and consignment trading of foreign currency; leasing operations; currency trade and sale through currency auctions, currency exchanges and inter-bank currency markets; contracts between Ukrainian citizens and foreign legal entities; employment of foreigners in Ukraine, etc. The above mentioned Law declares that no additional permissions or registrations of foreign contracts are usually required by the state administrative authorities, unless specifi cally provided otherwise by Ukrai- 2 nian legislation or unless licensing is required in the specifi c import-export transaction . Several exceptions exist, however, including barter and counter-trade contracts with foreign parties, almost all contractual arrangements with Ukrainian state-owned enterprises (which are subject to review and approval by such enterprises? higher-standing organization, such as its Ministry), certain transactions in foreign currency (which require special permission from the National Bank) and, recently, joint investment agreements with foreign entities. LICENSING REQUIREMENTS. OVERVIEW In 2003 certain amendments to the Law of Ukraine ?On Foreign Economic Activity? regarding the licensing of certain foreign economic operations were introduces. Those amendments deal with the licens- ing of the export/import of goods into Ukraine under either an ?automatic? or a ?non-automatic? licensing procedure in respective cases. Only one type of license may be issued for each type of product. The licensing requirements also apply to barter operations with goods falling under a licensing regime and to the export or import of disks for laser reading systems, matrixes, raw materials and equipment for their production. However, the licensing requirements do not apply to the export of goods received by an investor on the basis of production sharing agreements, unless otherwise provided by the production shar- ing agreement itself. They also do not apply to certain goods related to military production, nuclear energy and state secrets of Ukraine. Automatic licensing grants permission to subjects of foreign economic activity for the export or import of goods within a specifi ed period provided that such goods are not subject to a quota. Conversely, non-automatic licensing grants permission to subjects of foreign economic activity within a specifi ed period for the export or import of goods, which are subject to quotas (quantitative or otherwise limited), that may be applied by the Cabinet of Ministers of at the request of the Ministry of Economy of Ukraine or other authorized body. The licenses themselves are issued by the Ministry of Economy or other authorized body on the basis of respective applications. In some cases, the granting authority may also request to review any documents 1 In this paper we use the terms ?international trade? or ?foreign trade? since their use is more common. In those cases where the citation of the Ukrainian law is necessary we use ?foreign economic activity? with the only aim to give the correct citation. 2 Please read about registration of importers and exporters in the respective chapters. www International Trade. Ukraine and information necessary to confi rm the data in an application, as well as the foreign trade contract itself. In the case of automatic licensing, the application for a license and the other necessary documents may be submitted on any working day before the customs clearance of goods. The term for issuing a license should not exceed ten (10) working days from the date of receipt of the application and respective docu- ments. In the case of non-automatic licensing the term for considering an application should not exceed 30 days from the date of receipt of the application if it is considered in the order of their receipt, but not more than 60 days commencing from the date of the expiration of the announced term for acceptance of the ap- plications if it is considered simultaneously. A non-automatic license shall be issued on the basis of an application within the limits of a quota with an indication of the validity term of the license. In case established quotas are exhausted at the moment of submission of an application (in case of the application of procedures of consideration pursuant to the order of receipt), such application shall not be considered. A subject of foreign economic activity, which submit- ted a respective application, shall be informed in writing of the fact of the exhaustion of quotas within seven (7) working days from the date of its receipt. A decision on the issuance of a license shall be taken, taking into account information on earlier re- ceived licenses provided that the applicant observes the requirements of the legislation on the protection of economic competition. Upon payment of the issuance fee and acceptance of the application, a license will be issued to the subject of foreign economic activity. The customs clearance of goods may only take place upon the presentation of an original license. A copy of the license has to be attached to the cargo customs declaration and will serve as one of the grounds for the admission of the goods across the customs border of Ukraine. Each month the regional customs bodies receive information on the issuance of licenses for the export or import of goods falling under a licensing regime. For its part, the regional customs bodies inform the central body responsible for issues of economic policy on the volume of the export or import of goods. Finally, the list of goods, the export or import of which fall under a regime of licensing, the validity term of licenses and any amendments to such information, as well as the procedure for the submission and consideration of license applications is published in the offi cial publications of Ukraine with a notice to the corresponding committee of the World Trade Organization (WTO) within 60 days from the day of the publication and the presentation of copies of such publications. If a quota is allocated amongst countries-suppliers, information on such allocation is published with a notice about the allocation to other countries interested in the supply of certain goods in Ukraine. The of- fi cial publication must take place 21 days before the date of the introduction of a licensing regime, but no later than such date. 6 International Trade. Ukraine FOREIGN TRADE CONTRACT Long live freedom! Protectionism, or the Three Aldermen by Frédéric Bastiat APPLICABLE LAW It is widely used practice when foreign companies apply their standard agreements to Ukrainian trans- actions without foreseeing the risks involved. That may cause problems in case the provisions of the con- tract are in contrary with mandatory rules of Ukrainian law. Under the general rule, the law applicable to the contract regarding the form and essence thereof may be chosen by the parties. However, in some cases, applicable law must be chosen according to the collision rules specifi ed in the Law of Ukraine ?On International Private Law?. If the parties fail to insert a choice of law into a foreign trade contract (?foreign economic contract? in terms of Ukrainian legislation), the Law of Ukraine ?On International Private Law? provides that the law with the closest connection to the transaction will be applied. Unless otherwise provided, the transaction is most closely connected with the law of the country (place of residence or place of location) of the party, which must perform or will have the decisive signifi cance for the contents of the transaction. In this case, the parties are as follows: (I) the Seller in case of a sale-purchase contract; (II) the Service Provider under an agreement on the provision of services; (III) the Cargo Carrier under a shipping contract; (IV) the Agent under a commission agreement; (V) the Legal Owner under an agreement on commercial concession, etc. The form of foreign trade contracts is determined by the place of execution thereof, unless the parties provide otherwise. Accordingly, a contract entered into in a foreign country cannot be invalidated by Ukrai- nian laws for reasons of non-compliance with Ukrainian standard forms. However, such foreign trade con- tract must adhere to substantive Ukrainian laws. With no regard to applicable law and place of execution, the foreign commercial contract must be made in a written form if one of the parties thereto is a Ukrainian individual or legal entity. International contracts must be concluded in Ukrainian with translation into a foreign language. Under Ukrainian law, either a foreign contract or some of its provisions may be declared invalid or void by a court if it does not comply with the requirements of Ukrainian law or international agreements of 3 Ukraine . An agreement is void under Ukrainian law from the moment of its execution. A foreign trade contract must correspond in form and substance with the Laws of Ukraine ?On Interna- tional Private Law? and ?On Foreign Economic Activities? and Order No. 201 of the Ministry of Economy and European Integration Issues ?On Approving the Regulations on the Form of Foreign Economic Agree- ments (Contracts)?, dated September 6, 2001 (hereinafter the ?Regulations?). The Regulations provides for a list of elements essential for a contract, and if a contract is devoid of them it may be deemed invalid on the ground of inappropriate form. This Regulation is applicable, unless an express provision to the contrary is stipulated by the parties to the contract. The above is subject to the condition that the contract is not deprived of the essential terms and the parties have reached the agreement as to all the terms they consider essential. According to the provisions of the Regulations, the contract must contain the following elements: 3 Though we mentioned that the foreign trade contract has to be in Ukrainian language, the courts usually do not treat the noncompliance with that rule as a ground for invalidation of the contract. www u www.c-n-l.e International Trade. Ukraine ? Name, number, date and place of signing; ? Preamble containing complete names of the contracting parties. It is recommended to include: - the full names of the parties to the foreign trade contract (as duly registered in their countries of origin); - the names of countries; - an abbreviated identifi cation of the counterparts (e.g., ?Seller,? ?Buyer,? etc.); - the name of the person on behalf of which the foreign trade contract is being concluded; - titles of the documents governing the counterparts during the conclusion of the contract (e.g., charter documents, etc.); ? Scope of the contract. This section must determine the goods (services or works) that one party undertakes to provide to or perform for the other, including accurate titles, brands, grades, sorts or the fi nal result of any services provided. The goods or services that require description in detail may be described 4 in annexes, which will become an integral part of the contract . An annex to a contract for the processing of a customer?s goods must state the corresponding technological scheme of such processing, which must refl ect the following: a) all of the principal processing stages for the materials and the process of transforming the materials into a fi nished product; b) quantitative indicators of the materials at each stage of processing, which must include substantiated technological losses of materials; and c) the losses of the processing performer at each stage of processing; ? Quantity and quality of goods (or the scope of works, services). The parties must state, the mea- surement unit accepted for the type of goods in question (e.g., ton, kilogram, units, etc.), its total quantity and the qualitative characteristics. In case of a contract for the rendering services, the parties must state in the text the specifi c scope of the services and the deadline for their performance; ? Basic terms of supply. The parties must state the type of transportation and the basic terms of supply which determine the counterparts? duties regarding delivery of the goods and which establish the moment when the relevant risks transfer from one party to the other. According to the Decree of the President of Ukraine ?On Application of International Rules of Interpretation of Commercial Terms?, dated October 4, 1994, Ukrainian entities must use the effective edition of INCOTERMS upon concluding any foreign trade contract; ? Price and total amount of the contract. The parties must specify the price for the units of the goods and the total value of the goods or provided services delivered (performed) under the contract (except when the price of the goods (services) is calculated according to a specifi c formula), as well as the currency of the contract. If the price of the contract is determined according to a formula, then the parties must state the esti- mated value of the contract as of the date of its conclusion. If the parties deliver goods of various quality and assortment under the contract, the price must be determined separately for the unit of goods of each sort. The total value of such contract must be set out in a separate provision. In this case, the pricing indica- tors may be set out in annexes with the relevant references thereto in the contract. In case of a contract for the processing of a customer?s materials, the parties must state the collateral value of the materials, the price and total value of the fi nished products and the total cost of processing; ? Payment conditions. The parties must determine the currency of payment, method of payment, or- der (procedure) and deadlines for settlements, as well as the parties? security for the performance of their mutual payment obligations. The parties must include the following into the contract: a) the terms of the bank transfer prior to (advance payment) and/or following the dispatch (shipment) of 4 Respective provision to this effect must be set out in the text of the contract as well. 8 International Trade. Ukraine 5 goods or the terms and conditions of the documentary letter of credit or cash collection with a guarantee ; and b) the terms and conditions of the guarantee, if any, and if necessary the type of guarantee (demand guarantee, conditional guarantee, etc.), the effective term of the guarantee and the possibility to change the terms and conditions of the contract without changing the provisions of the guarantee. The terms and conditions of payment are vital in that they determine what will happen if a purchaser fails to make timely payment or complete payment, including the amount of penalty for such violations. These terms and conditions also should indicate which party and in which volume taxes, customs fees and other mandatory payments will be paid. According to the provisions of Ukrainian laws regarding currency transactions, and namely the Resolution of Board of the National Bank of Ukraine No. 597 ?On Transfer of Funds in National and Foreign Currency in favor of Non-residents under Certain Transactions?, settle- ment of payments in foreign currencies in relation with foreign counterparts under foreign trade contracts can be performed through banks. Banks, therefore, request details of such contracts in order to perform the corresponding payments in foreign currencies; ? Acceptance provisions. The parties must specify the dates and place for the actual turning over of the goods (or fi nal performance of services) and the list of title documents to such goods. Goods are ac- cepted according to the title documents as far as the quantity is concerned. As far as quality is concerned, goods or services are accepted according to the documents that certify their quality; ? Packaging and labeling. The parties must specify the packaging of the goods (boxes, sacks, contain- ers, etc.), proper markings placed thereon (name of both the seller and the buyer, number of the contract, place of destination, dimensions, specifi c storage and transportation terms and conditions, etc.) and, if nec- essary, the terms for returning the goods; ? Force majeure provisions. The parties must describe the force majeure events that would allow them to dispense with the terms and conditions of their contract (e.g., acts of God, hostilities, embargo, intrusion by governmental authorities). Under such circumstances, the parties are typically relieved of their duty to comply with the terms and conditions of the contract for the specifi c duration of the circumstances, or they may decline to perform the contract in part or in full without responsibility. It is common practice that the parties specify in the contract that they must receive confi rmation of the existence and duration of force majeure circumstances from the respective chamber of commerce and industry of the country where such circumstances occur; ? Provisions on sanctions and claims. The parties have to establish the procedure for applying pen- alties, recovering damages and lodging claims in connection with the failure to perform or the improper performance of the counterparty?s respective obligations. The parties have to determine the size of the penalties (in percentage of the value of non-delivered goods or services or non-paid amounts), the terms of penalty payments (i.e., when the penalty starts to apply and how long it remains applicable), or any limita- tions on penalty amounts. The parties must also set forth the terms during which claims may be lodged, the parties? rights and duties in such cases and the methods of settling claims; ? Dispute resolution provision. The parties must set out the procedure for resolution of disputes that may arise out of the validity, interpretation, failure to perform or improper performance of the contract. This section must also expressly state the forum and/or the express criteria for determining the forum by any of the parties depending on the subject matter and nature of the dispute, as well as the parties? selection of the substantive and procedural law that will be applied by the forum and the rules of procedure. The parties may agree about arbitration of potential disputes as well as to refer to alternative dispute resolution methods (mediation, conciliation etc.); 5 Their form is determined by Resolution of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine, No. 444, dated June 21, 1995. www www 9.i International Trade. Ukraine ? Residence of parties and payment details. This section must contain the information about the place of the parties? location (residence), mailing and their banking requisites (account number, name and location of the bank, etc.). This information is important for any notices and claims that may be sent under the conditions of the contract. Upon the agreement of the parties, the conditions additional to the scope of those mentioned above may be stipulated (insurance, quality guarantees, agents, freight forwarders etc.). When drafting a foreign trade contract, the parties may use recognized international customs and rec- ommendations of international bodies and organizations, unless such use is directly and expressly prohib- ited by the Laws of Ukraine. Notably, if Ukraine is a party to international treaties, which provide different terms and conditions than contained in Laws of Ukraine, then the provisions of such international treaties 6 will prevail . Thus, the scope of international agreements and general international conventions in particu- lar, should be taken into account (for instance, the 1980 Vienna Convention). Besides, bilateral agreements between the parties? home jurisdictions, particularly conventions related to tax and investment matters, provide for special rules of doing business in the respective countries. PAYMENT INSTRUMENTS Ukraine adheres to international legal instruments pertaining to international payments via checks, bills of exchange, letters of credit (L/C) and collection arrangements. All types of L/Cs (revocable, irrevocable, transferable, ?Red clause?, revolving, stand-by) are served by Ukrainian banks. The recommended method of receiving payment for foreign exports is through an irrevocable letter of credit (L/C). Transfer of pay- ment orders in foreign currencies are made either through a cover at the foreign partner-bank. To carry out hard currency transactions, a bank has to be authorized by the National Bank of Ukraine. Authorized Ukrai- nian commercial banks are members of SWIFT. FOREIGN-EXCHANGE CONTROLS Foreign currency operations are regulated by the Decree of the Cabinet of Ministers ?On the System of Currency Regulation and Currency Control? of 1993, as well as a number of implementing rules issued by the National Bank of Ukraine. The key issues regarding Ukraine?s current exchange control regulations related to the foreign trade are: ? Payments under foreign trade contracts between a resident and a non-resident entity should be in foreign currency only. ? Proceeds from export must be credited to the exporter?s Ukrainian bank account within 180 days from the date of customs clearance (for goods) or date of services delivery. Similarly, prepaid goods must be imported and cleared through customs within 180 days of payment. Failure to do so results in a fi ne of 0.3% of the amount due or paid for each day of delay. ? The purchase of foreign currency in 2010 is subject to a 0.5% Pension Fund charge, which is with- held by the bank. ? Payments by Ukrainian business entities for services rendered by non-residents for amounts exceed- ing EUR 100,000 (annually) require confi rmation from the Ukrainian National Research and Information Center for Monitoring of Commodity Markets (NRIC ?Derzhzovnishinform?) that the fee for the services does not exceed market prices. Provided relevant documentation is in place, this should not delay payments. 6 There are exceptions, however, such as in the case with the UN Convention on contracts on the international sale-purchase of goods (1980 Vienna Convention). Ukraine has made a reservation to the provisions which permit the parties to an international sale-purchase agreement to conclude oral contracts or conclude written contracts by use of telegraph or teletype. Thus, Ukrainian law only recognizes international sale-purchase agreements which are concluded in written form and signed in original by the parties. 10 International Trade. Ukraine However, the process cannot be taken lightly. If NRIC ?Derzhzovnishinform? rejects an application, no payment will be permitted. Ukrainian companies (and individuals) are required to obtain a license from the National Bank of Ukraine for a number of transactions, including the opening bank accounts abroad. In a typical import transaction a Ukrainian entity may convert the Ukrainian Hryvnia into any foreign convertible currency. The contractually agreed-upon amount may then be wired to the seller as payment under a foreign trade contract. Ukrainian legislation requires that proceeds received by Ukrainian residents in foreign currency must be transferred to their currency accounts in authorized banks within the term set forth in the relevant con- tracts, but no later than 180 calendar days from the date of the customs clearance of export goods. In case of the export of works, services or intellectual property rights, payment must be received by Ukrainian residents within 180 calendar days from the date of the signing of the document certifying the performance of works, services or the export of intellectual property rights. The above 180-day term may be extended upon receipt of a special conclusion or certifi cate from the Ministry of economy. In case a Ukrainian resident carries out import operations, which are subject to deferred delivery condi- tions exceeding 180 calendar days from the date of making an advance payment or providing a promissory note in favor of the supplier of import goods, works or services, a special conclusion or certifi cate from the Ministry of economy is required. If settlements for a Ukrainian resident?s import operations are in the form of documentary letters of credit, the 180-day term will start running from the date the authorized bank makes payment in favor of the non-resident party. The Cabinet of Ministers of Ukraine and the National Bank of Ukraine have established a special procedure, terms and conditions for the conclusion of import operations without the actual importation of goods onto the territory of Ukraine. If a Ukrainian resident is in violation of the above 180-day terms, it may be subject to a fi ne for each day of delay in the amount of 0.3% of the amount of the outstanding proceeds or the value of undelivered goods in foreign currency. This amount will be calculated in Ukrainian currency at the exchange rate of the National Bank of Ukraine on the day the indebtedness arises. The total amount of the imposed fi ne may not exceed the amount of the outstanding payment or the value of undelivered goods. www www 11.inve-tr International Trade. Ukraine CUSTOMS REGULATIONS Down with restriction! Protectionism, or the Three Aldermen by Frédéric Bastiat GENERAL ISSUES The general principles of customs procedures in Ukraine are defi ned by the Customs Code of Ukraine, adopted on July 1, 2002. This Code also regulates the movement of goods across the customs border of Ukraine and customs control procedures and other related issues. The Customs Code provides that goods may be moved across the customs borders of Ukraine for the purposes of: ? import; ? export; ? re-import; ? re-export; ? transit through the territory of Ukraine; ? temporary import into the territory of Ukraine; ? temporary export out of the territory of Ukraine; ? customs warehousing; ? special customs zone; ? duty free stores; ? processing goods on the customs territory of Ukraine; ? processing goods outside the customs territory of Ukraine; ? destroying goods; ? abandoning goods for the benefi t of the state. Ukraine is a signatory to major international customs conventions, including the Kyoto Convention on Simplifi cations and Harmonisation of Customs Procedures, the International Convention on the Harmon- ised Commodity Description and Coding System, the Istanbul Convention on Temporary Admission. DOCUMENTATION AND PROCEDURES All goods crossing the border are subject to customs control, which includes specifi c procedures aimed at ensuring compliance with customs rules. The customs authorities may conduct post-entry audits to verify compliance with customs and tax legislation. In addition to customs control, other types of border control including sanitary, veterinary, phytosanitary, radiological, ecological controls and control over cross-border movement of art may be conducted. Although the legal framework has developed in line with international norms, many administrative practices remain unchanged. The customs authorities are entitled to conduct postentry audits and these have become more common in practice in recent years. There are fi eld and desk audits. During fi eld audits the customs authorities may analyse customs, fi nancial, accounting and warehousing documentation. As a rule, audits cover a 3-year period and focus on customs valuation, classifi cation issues and eligibility for exemp- tions. Although Ukrainian law allows customs authorities to conduct post-entry audits to verify compliance with customs and tax legislation, in practice the authorities still exercise almost all customs control during the initial clearance of goods. Qualifying entities may benefi t from simplifi ed customs procedures; how- ever, strict criteria prevent these benefi ts from being available to a wider range of entities. 12 International Trade. Ukraine Since 2008 Ukraine has introduced the option of electronic fi ling of cargo customs declarations. But, at the moment, electronic fi ling is only used to make preliminary notifi cations. There are currently 210 Customs checkpoints on the territory of Ukraine including 109 vehicle check- points, 38 railway checkpoints, 30 marine checkpoints, 3 pedestrian checkpoints, 18 air checkpoints, 3 fer- ryboat checkpoints, and 9 river checkpoints. Every checkpoint covers a particular geographical area. INTELLECTUAL PROPERTY RIGHTS IN FOREIGN TRADE Owners of intellectual property rights may request that Ukrainian customs authorities register goods containing intellectual property in order to prevent the illegal import or export of pirated or counterfeited goods. In this case, customs authorities may delay customs clearance of such goods until it can be proven that no breach of intellectual property rights has taken place. If the importer or exporter does not submit suffi cient evidence, the customs offi ce may seize the goods and impose penalties. www International Trade. Ukraine IMPORT Long live low prices! Protectionism, or the Three Aldermen by Frédéric Bastiat OVERVIEW Importers continue to face troublesome customs, licensing, and certifi cation procedures, though these procedures are improving thanks to WTO accession and continuing efforts to harmonize with EU standards. Ukraine continues to maintain barriers to imports, including specifi c fees and certifi cation regimes. Non-tariff barriers include non-transparent standards, cumbersome procedures for phytosanitary certifi ca- 7 tion, and import licenses. Import data 2008 2009 2010 7 Cost to import (US$ per container) 1245 1430 1430 Documents to import (number) 10 10 10 Time to import (days) 39 36 36 IMPORT REQUIREMENTS AND DOCUMENTATION Despite some procedural improvements made by the Ukraine?s State Customs Service, fi rms importing goods into Ukraine should expect a slow working bureaucracy and a large volume of paperwork. a. Registration of Importers Any business entity (including representative offi ces of non-residents) that is engaged in import operations is required to register with the customs offi ce that serves the area in which the company is located. Customs clearance of goods in another customs offi ce requires permission from the customs offi ce where the entity is registered. b. Documentation Goods crossing Ukraine?s border should be declared to the customs authorities, either by the importer or a licensed customs broker on behalf of the importer. Use of licensed customs brokers to navigate the of- ten non-transparent and seemingly inconsistent customs regulations is recommended, as constantly chang- ing regulations and, in many cases, the mood of the customs offi cer can hinder the successful import of a product. The importation of goods must be supported by complete documentation. The following import documents are required for all shipments to Ukraine: ? Cargo customs declaration with the description and value of goods, term of payment (i.e., cash, bank transfer, barter, etc.), and terms of shipment. If payment is made by bank transfer, the name of the bank, address, and account number should be included; 7 Cost includes the fees levied on a 20 -foot container in U.S. dollars. All the fees associated with completing the procedures to import the goods are included, such as costs for documents, admin- istrative fees for customs clearance and technical control, terminal handling charges and inland transport. The cost measure does not include tariffs or duties. 14 International Trade. Ukraine ? Signed contract, invoices and waybills; ? Import license, if required; ? Copy of the packing list; ? Copy of the certifi cate of origin; ? Copy of the accreditation card or customs registration certifi cate; ? If importing weapons, ammunition, explosives, or poisonous substances, written permission from the Ministry of Internal Affairs; ? If importing electronic radio and equipment and high-frequency devices, written permission from the State Telecommunications Committee; and ? If importing drugs, medical preparations, and sources of ionizing radiation, written permission from the Ministry of Health. ? Evidence of payment of customs duties and taxes. ? Any other documents that may be requested by Customs. Because the list of the documents to be presented to customs authorities changes frequently, businesses should contact a local customs expert for the most up-to-date list. Missing or defi cient documents are likely to cause delays during customs clearance. Import of goods is subject to licensing in case of (i) certain fi scal problems; (ii) a decrease in goldcur- rency reserves; (iii) necessity to protect the population, animals, plants, the environment, public morale, national wealth, intellectual property or state security; (iv) importinig precious metals (except bank met- als); (v) protecting national production of goods and patents, trademarks and copyrights; and (vi) fulfi lling international agreements of Ukraine. The list of goods covered by the licensing regime and the license terms are decided annually by the Cabinet of Ministers, and they change from year-to-year. Most import licenses are granted through the Ministry of Economy. Other import licenses are issued by: ? Ministry of Internal Affairs (sporting weapons and self-defense articles) ? Ministry of Agriculture, the State Chemical Commission (agricultural chemicals), and Ministry of Environmental Protection (if such substances are supplied in sprays); ? Ministry of Agriculture (seeds); ? Ministry of Health (pharmaceutical products, cosmetics, and hygiene products) and Ministry of Environmental Protection (if such substances are supplied in sprays); ? Ministry of Agriculture, Department of Veterinary Medicine (veterinary medicines); ? Ministry of Education and Science (matrix forms used in the manufacturing of audio production); and ? Ministry of Environmental Protection (ozone-depleting chemical substances including propellants for spray-paints and enamels, perfume, body lotions, etc., paint-solvents, fi re extinguishers and refi lls, oil- sprays, air-conditioners and refrigerating equipment, and refrigerated vending machines). c. Declaration of Customs Value Customs value is declared by fi ling a declaration of customs value, including reference to the valuation method used. The importer must also provide relevant documents to demonstrate the customs value. If these documents are not available, or if the customs offi ce has well-grounded doubts about the data provided by the importer, the customs offi ce may determine the customs value based on the information available. This may include information available to the authorities on prices for identical or similar goods. When the customs value requires review, or when the importer does not agree with the customs value determined by the customs offi ce, the importer may request that the customs offi ce release the goods for free circulation against payment of import taxes. The importer may then appeal the determination of the customs value by the customs authorities to a higher customs offi ce, or to the courts. www .eu www.c-n-l International Trade. Ukraine PROHIBITED AND RESTRICTED IMPORTS The Ukrainian government strictly controls and restricts the import of weapons, narcotics, chemical and hazardous substances, and certain pharmaceutical and communications products. Foreign companies wishing to import these goods should contact the relevant Ukrainian government ministry responsible for issuing licenses. LABELING AND MARKING REQUIREMENTS All imported food products should carry labels in the Ukrainian language. The labels should include information about the manufacturer, product ingredients, and expiration dates. In addition, some labels/ markings have to be adhered to specifi c products, including labels for hazardous materials, labels indicating the contents and expiration date of foodstuffs, and markings indicating the voltage and frequency of electri- cal appliances. In December 2009 Ukraine introduced mandatory requirement that goods containing Ge- netically Modifi ed Organisms (GMOs) and GMO-free goods must be labeled accordingly, with importers facing a liability for incorrect information. Detailed information on labeling requirements can be obtained from a relevant Ukrainian Ministries and agencies. STANDARDS AND CERTIFICATION Ukraine has passed several new laws and governmental decrees in recent years aimed at bringing Ukrainian practices in this area into line with the WTO Agreement on Technical Barriers to Trade (TBT), but signifi cant problems remain. Based on the old Soviet system, the Ukrainian technical regulations sys- tem is characterized by burdensome, ex ante control and widespread compulsory standards, and it differs markedly from systems in Europe and OECD countries. a. Standards Organizations The State Committee for Technical Regulation and Consumer Policy (DerzhSpozhyvStandard - http://, the standardization and certifi cation body in Ukraine, is simultaneously responsible for developing and approving standards, issuing certifi cates, conducting inspections of producers, and ensuring market surveillance and protection of consumer rights. These overlapping functions combine a commercial certifi cation role with supervisory authority as an arm of the state. Combined with the fact that DerzhSpo- zhyvStandard both provides certifi cation services and appoints other certifi cation bodies, this creates nu- merous confl icts of interest and excessive discretionary power. Moreover, many of these functions overlap in some areas with other government authorities, such as the Sanitary and Epidemiological Service and the State Committee for Veterinary Medicine. Appropriate resources, such as modern analytical equipment and reactants, are not available in most DerzhSpozhyvStandard laboratories. Depending on the type of product, testing, and applicable certifi cation scheme, the certifi cation process can take from 3 days to 1 month. b. Conformity Assessment Although Ukraine belongs to several international standardization bodies, such as the International Or- ganization for Standardization (ISO), it generally has not recognized foreign product certifi cates, even if they are issued in line with international standards, unless recognition is mandated through an international treaty signed by Ukraine. At the same time, the Presidential Decree No. 817/98 ?On Certain Measures for the De- regulation of Entrepreneurial Activity,? dated July 23, 1998, exempts products (except food products) whose quality is confi rmed by certifi cate issued outside of Ukraine in accordance with the international standard ISO or other international standards, from having to repeat the certifi cation for such goods in Ukraine. Ukraine is still not a member of the European Co-operation for Accreditation (?EA?), therefore the ac- creditation of goods in a Ukrainian laboratory for their subsequent export is not accepted by most member 16 International Trade. Ukraine states of the EA (i.e., the goods must be examined in a European laboratory). Likewise, goods imported into Ukraine must go through the accreditation process in a Ukrainian labo- ratory if Ukrainian accreditation is not accepted in the country of origin. Again, this affects the price for which goods will be sold on the market. Contrary to accepted international practice, standardization in Ukraine is not a voluntary procedure through which manufacturers can ensure specifi c properties of a process or product, but rather a part of the state regulatory system. Standards are compulsory for virtually all goods, and many services. Mandatory certifi cation is required in Ukraine for over 400 types of goods and services and remains applicable de facto for an even larger number of goods and services. Mandatory certifi cation is often required without regard to the products? actual level of risk to the public, or to other types of regulation already applicable, for ex- ample, for food products, which are already regulated by the Sanitary and Veterinary Services. Mandatory certifi cation in Ukraine is applicable both to domestic products and to imported goods in most cases, gener- ally irrespective of whether they already have proof of conformity with applicable international technical regulations. In addition, mandatory certifi cation applies to produced goods rather than to the production process, thus forcing manufacturers to complete certifi cation procedures repeatedly or to submit proof of conformity assessment for each batch of products. Most current standards were created under the Soviet Union, do not correspond to international stan- dards, and are typically far more restrictive and prescriptive than necessary. The International Finance Cor- poration estimates that over 12,000 of Ukraine?s standards still need to be harmonized with international standards. c. Product Certifi cation Several categories of import products are subject to special licenses or ?certifi cations? such as phar- maceutical, agro-chemical and food products, cigarettes and alcohol. All imported food products undergo a ?certifi cation? process, during which the required labels containing various information (in the Ukrainian language) must be affi xed onto the product. The required information includes the product?s name, volume, chemicals and additives, expiration date, and calorie content, among others. The certifi cation is provided by the Ukrainian certifi cation authorities in respect of a wide range of imported goods by issuing a Ukrainian Compliance Certifi cate. In the absence of such a document, goods cannot be imported into Ukraine. On May 14, 2008, the Cabinet of Ministers of Ukraine with its Resolution No. 446 approved the Pro- cedure of the Customs Clearance of Imported Goods (Products) Which Are Subject to Mandatory Certifi ca- tion in Ukraine. The practical implementation of the otherwise reasonable certifi cation requirements con- tinues to cause great anxiety amongst importers. While product certifi cation is designed to ensure consumer safety and quality standards, it can also become a good tool to protect domestic producers from importers. Importers can apply for three types of technical standard certifi cates: ? A certifi cate for a single batch of goods; ? A certifi cate for one year, which is valid for all imported goods during that year with one or two additional selective tests (this type of certifi cation is the most common in Ukraine, covering 70% of issued certifi cates); and ? A certifi cate for 5 years, for which mandates inspection of production facilities. In addition, Ukraine applies a range of sanitary and phytosanitary (SPS) measures, many of which do not appear to be consistent with an international, science-based approach to regulation. The certifi cation and approval process is lengthy, duplicative, and expensive, with politics and corrup- tion still often behind arbitrary application of regulations. Amendments to the Laws of Ukraine ?On Quality and Safety of Food Products and Food Raw Materials,? ?On Veterinary Medicine,? ?On Plant Quarantine,? and others, to bring Ukrainian legislation in compliance with requirements of the WTO Agreement On Sanitary and Phytosanitary Measures, passed in 2005 and 2006. www International Trade. Ukraine To apply for certifi cation, the following documents issued outside Ukraine confi rming a product?s con- formity to specifi c requirements are to be submitted to the DerzhSpozhyvStandard: ? An application stating that the company wishes to certify imported products; ? A certifi cate of conformity; ? Standards (technical conditions) of production and the procedures for certifi cation; ? A certifi cate of accreditation from the testing laboratory; ? A protocol/summary of test results; ? A certifi cate of quality control; and ? A certifi cate of origin (manufacturing). Because the list of documents issued outside Ukraine confi rming a product?s conformity to specifi c requirements changes frequently, businesses should contact DerzhSpozhyvStandard for the most up-to-date list. DerzhSpozhyvStandard has adopted ISO-9000 for production systems certifi cation. Based on these standards, Ukrainian certifi cation bodies can evaluate the quality of a production system rather than the quality of a single product. The procedure for issuing ISO certifi cates requires a visit from Ukrainian stan- dards specialists to the importer?s production facilities to inspect the system?s quality. Adoption of the ISO- 9000 series should facilitate the process of certifying goods as system quality certifi cates are issued for a three-year period. According to DerzhSpozhyvStandard, the ISO-9000 standard certifi cate doesn?t prevent the importer from certifying individual products. An April 2008 amendment to the law ?On Standards, Technical Regulations, and Conformity Assessment Procedures? helped to ensure that Ukraine?s authorities will accept the results of alternative methods of conformity assessment, including those performed in the United States. During WTO accession negotiations, Ukraine pledged to continually review the list of products sub- ject to mandatory certifi cation and to reduce the number of products on this list if the legitimate objectives could be met in a less trade-restrictive manner. In 2009 DerzhSpozhyvStandard failed to reduce the list, but instead added two new items to it and took steps to add fruits and vegetables to the list as well, though this expansion attempt was subsequently aborted and the notifi cation to the WTO was withdrawn. ACCREDITATION On August 1, 2002, a National Accreditation Body was established to ensure the use of standards and procedures consistent with the European Cooperation for Accreditation policy. Ukraine?s National Ac- creditation Agency is affi liated member of the International Laboratory Accreditation Cooperation (ILAC), and in 2009 it made a fi rst step on the way to the full membership ? signing an Agreement with European Cooperation for Accreditation (EA) about personnel accreditation. After becoming ILAC member, Ukraine should signifi cantly increase the acceptance of test results of laboratories accredited with, and notifi ed by, ILAC member bodies. CUSTOMER SUPPORT In February 1999, the Cabinet of Ministers adopted a decree on after-sale service and maintenance of household appliances. According to this legislation, all products have to carry certifi cation of origin, price, after-sale obligations of the manufacturer, rules of use, the manufacturer?s address, and information on certifi cation in Ukraine. IMPORT TAXES Certain import taxes and duties are payable by the importer when goods are imported into Ukraine. 18 International Trade. Ukraine a. Value-Added Tax Ever since April 3, 1997, when the Parliament passed the Law ?On Value Added Tax? (as lastly amend- ed on June 29, 2010), the legislation governing the value added tax (?VAT?) has changed frequently. The VAT rate under the Ukrainian law is 20% on most goods. As the list of goods exempted from VAT changes frequently, businesses should contact a local tax expert for the most up-to-date list. The taxable base of import VAT is either the contractual or customs value of the goods, whichever is higher, plus the amount of any import duties and excise duties (if any). This import VAT is due and payable at the same time customs duties are being assessed (with a potential thirty-day extension made at the discretion of the customs offi ce). b. Customs Duties Ukraine?s import duty schedule provides for three rates of import duty: full rates, most favored nation rates, and preferential rates. The full rate of import duty can be from 2 times to 10 times higher than the most favored nation rate. Upon becoming a WTO Member on May 16, 2008, Ukraine applied new, lower most favored nation rates to all goods originating from WTO Members, in accordance with Article I of the GATT 1994. Preferential rates, lower than the most favored nation rates, are applied to imports from coun- tries with which Ukraine has a Free Trade Agreement or other preferential trade agreement, mostly from the CIS. Most customs tariffs are levied at ad valorem rates, and only 1.5 percent of tariff line items are subject to specifi c or combined rates of duty. There are seasonal, special, anti-dumping and countervailing duties. The average applied tariff rate fell to 4.95 percent after WTO accession and increased slightly 5.4 per- cent in 2009. The specifi c rates for various products may be found in various laws. The Ukrainian Classifi cation of Foreign Economic Activities (UC FEA), which is based on the Harmonised Commodity Description and Coding System (2002), is the effective customs classifi cation document in use in Ukraine. UC FEA serves as the basis for Ukraine?s Customs Tariff. Ukraine is a member of the International Convention on Harmon- ised Commodity Description and Coding System, so this system is consistent with international standards. Ukrainian customs valuation rules comply with the Agreement on Implementation of Article VII of the GATT 1994. The contract value is generally used as the basis for determining dutiable value. The customs value should be determined in accordance with one of the six WTO valuation methods, which apply in sequential order. The customs authorities are entitled to assess duties at a higher value in certain circum- stances. As a rule, all imports are subject to payment of customs duty. The only exception applies to foreign investors who contribute qualifi ed foreign investment into a Ukrainian resident company?s chartered capital in exchange for the corporate rights in such company. The foreign investment laws expressly provide that in-kind investment imported into Ukraine as a foreign partner?s contribution to the authorized capital of any Ukrainian company, such as a joint venture or a 100% foreign-owned subsidiary, is exempt from customs duty, but is subject to value added tax. If, however, the above foreign investor?s property is alienated within three years from the date it is credited to the Ukrainian company?s balance, the Ukrainian company has to pay customs duty thereon. c. Excise Duties Excise duties apply to certain goods (cars, alcoholic beverages, tobacco products, beer, petrol, and die- 8 sel fuel). Rates of excise duty are specifi c to each item . A list of selected rates is presented below. 8 It is worth mentioning that according to the Decree of the President of Ukraine No. 609/95 ?On Excise Stamps on Alcoholic Beverages and Tobacco Products?, Dated July 12, 1995 importers are required to purchase special customs stamps and place them on each bottle of alcohol and every individual cigarette pack. Without such stamps, no alcohol or tobacco products could henceforth enter or be sold in Ukraine and, if found in Ukraine, they are subject to confi scation. www International Trade. Ukraine Product Excise duty rate (effective since July 1, 2010 Beer UAH 0.74 per 1 litre Wine base of grapes UAH 0.01 per 1 litre Fortifi ed wine UAH 0.50 per 1 litre Wine, sparkling wine, vermouth UAH 2.50 ? UAH 2.60 per litre Fermented fruit beverages with added alcohol UAH 34 per litre of 100% alcohol Fermented fruit beverages without added alcohol UAH 0.34 per litre Ethyl alcohol and other spirits, liqueurs and other UAH 34 per litre of 100% alcohol spirituous beverages UAH 14 per litre of 100% alcohol (starting from 1 January Spirit distillates and other spirit beverages from grape wine 2011 - UAH 20 per litre of 100% alcohol) Tobacco raw materials 0 Cigars, cigarillos UAH 140 per kilogram UAH 40,25 per 1000 sticks and 20% of sale Cigarettes without fi lter turnover (but not less than UAH 57,5 totally) UAH 90 per 1000 sticks and 25% of sale Cigarettes with fi lter turnover (but not less than UAH 150 totally) Tobacco for smoking UAH 50-70 per kilogram Chewing tobacco or snuff UAH 20 per kilogram New cars EUR 0.03 ? EUR 1 per cubic centimetre Used cars EUR 1 ? EUR 3.50 per cubic centimetre Motorcycles, motor bikes EUR 0.20 per cubic centimetre Petrol and diesel EUR 12 ? EUR 132 per 1000 kilograms d. Corporate Profi t Tax There is no direct connection of import operations to the Ukrainian corporate profi t tax (?CPT?). The CPT Law generally allows all reasonable business expenses, such as lease payments, payroll-related pay- ments, acquisition of business-related goods, work and services, and so on, as deductions, with the excep- tion of those explicitly disallowed or restricted by the Law. In this section it is necessary to mention that CPT does not allow to include to the tax payer?s gross expenses more than 85% of the payments to non- residents that are deemed to have «off-shore» status. e. Customs Processing Fees A customs processing fee is applied for overtime and offl ocation customs clearance of goods at an hourly rate ranging from USD 20 to USD 50 for the work of one customs inspector. f. Payments Import duties and taxes are payable by an importer in Ukrainian Hryvva (though some of them are declared in Euro) before or upon customs clearance. In certain cases, customs payments must be deposited with customs before the goods cross the Ukrainian border. Payment should be made in Ukrainian currency at the Ukrainian National Bank exchange rate effective on the day of payment. Excise duty on imported cigarettes is payable prior to customs clearance during purchase of excise stamps. 20 International Trade. Ukraine EXPORT Long live high prices! Protectionism, or the Three Aldermen by Frédéric Bastiat Though the algorithm of export operations is more or less simple, the procedure of customs clearance is still burdensome for exporters. Below is presented the average estimation of costs and time that may be spent, 9 as well as the number of documents needed to export goods. Export data 2008 2009 2010 9 Cost to export (US$ per container) 1045 1230 1230 Documents to export (number) 6 6 6 Time to export (days) 31 31 31 REGISTRATION OF EXPORTERS Any business entity that is engaged in export operations is required to register with the customs offi ce that serves the area in which the company is located. Customs clearance of goods through another customs offi ce requires specifi c permission from the customs offi ce where the entity is registered. EXPORT TAXES a. Export Duties Ukraine has limited export duties on scrap metal, natural gas, livestock, raw hides and certain oil seeds. b. Value Added Tax The export of goods and the supply of services that are ancillary to the export of goods are zero-rated. Zero-rating also applies to the supply of international transport services and toll manufacturing services (if fi nished goods are then exported from Ukraine). EXPORTS RESTRICTIONS AND CONTROLS Export is subject to licensing in Ukraine if there is a disbalance of certain vitally important goods on the internal market or to protect the population, animals, plants, the environment, public morale, national wealth, intellectual property or state security. A limited number of exports are subject to licensing and/or quotas. Examples include silver and gold, certain metal products exported to the EU and Russia, and oil or gas of Ukrainian origin. Ukraine has strict limitations for the export of antiques and other goods and artifacts deemed to be of particularly important historical or cultural value. This includes any items produced before 1950. Certainly there are specifi c restrictions related to the cross-border move of military and dual-use items. 10 The State Export Control Service is the primary licensing agency for dual use exports (commercial items 9 Cost includes the fees levied on a 20 -foot container in U.S. dollars. All the fees associated with completing the procedures to export the goods are included, such as costs for documents, admin- istrative fees for customs clearance and technical control, terminal handling charges and inland transport. The cost measure does not include tariffs or duties. 10 See www www 21.inve-t International Trade. Ukraine which could have military applications). If an exporter or foreign buyer violates the conditions governing the export of items indicated in the license, or if circumstances arise that may be harmful to Ukraine?s national security interests or violate its international obligations, the State Export Control Service may temporarily suspend or cancel a license. The Criminal Code covers infractions of export control rules (article 333). 22 International Trade. Ukraine OTHER CUSTOMS REGIMES Down with competition! Protectionism, or the Three Aldermen by Frédéric Bastiat TRANSIT Upon crossing an international border, goods may be declared as transit. If marked as transit, the con- tainer or vehicles will be sealed by Customs agents and cleared at the fi nal destination. Vehicles transport- ing goods marked for transit and subject to excise tax have to be provided with a numbered band assigned by Customs and designated on the declaration. Various goods in transit through Ukrainian territory may be placed in customs licensed warehouses if they are to be reloaded from one type of transport onto another. TEMPORARY IMPORT (EXPORT) Permission for temporary import/export with full conditional exemption from import taxes may be is- sued in a number of specifi c cases; including: ? goods intended for display or use during exhibitions, fairs, conferences, and similar events; ? equipment used by the media or fi lm-making crews; ? containers, pallets, packaging, or any other goods imported in connection with a commercial trans- action; ? samples of goods and advertising fi lms for non-commercial use, provided that they remain in the ownership of a person established outside Ukraine; ? transport vehicles used for moving passengers and goods across the Ukrainian border; ? sea vessels and aircraft imported for repair; ? goods imported for educational, scientifi c, or cultural purposes; ? personal items of passengers and goods imported for sport purposes; ? materials for tourism and advertising. Import of goods after repair abroad may be exempt from customs duty. A duty exemption applies to im- port of goods for repair, installation, assembly, mounting and adjustment on the condition that the repaired goods or fi nished products are exported from Ukraine within 90 days of import. Representative offi ces of foreign companies may import goods for offi cial use and which are not in- tended for resale under the temporary import procedures. Exemption from customs duty and taxes is not available, so the exemption has no practical advantage. Ukraine is a member of the Convention on Temporary Admission (Istanbul, 26 June 1990) allowing tax-free temporary import of a limited number of goods into Ukraine. Temporary importation is allowed to a maximum of one year and can be extended further by the customs authorities. Temporarily imported goods can remain in Ukraine for one year from the date a cargo customs declara- tion is submitted. If warranted, this term can be extended by local customs authorities for the duration of an economic, scientifi c, humanitarian, or other event in which the temporarily imported goods are required. The set term of temporarily imported goods should be refl ected in the cargo customs declaration. Samples may be shipped out of the country after usage via any customs point. Prior to their cargo customs declara- tion expiration, temporarily imported goods should be: ? Returned outside the Ukrainian customs border; ? Declared at customs for further use; www
Posted: 19 March 2012

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