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25 October 2002
Ukraine's new Customs Code was adopted on July 11 2002 and will come into force on January 1 2003. The code aims to:
The code regulates some aspects of commercial transactions, such as the transportation of goods through Ukrainian borders.
Depending on the transportation agreement, goods may be transferred as:
New customs institutions are envisaged in the code. A 'customs agent' is a legal entity which acts on behalf of a third party to bring goods through customs. Its activities are subject to licence and must be carried out in accordance with the agency agreement, in which the agent's rights and obligations are specified. Information which the agent receives from the party it represents may be used only for the purpose of customs declaration. The agent is responsible for any unauthorized dissemination of this information.
The customs carrier is the legal entity which transports the goods that are under customs control. It must be a licensed resident company.
In all customs activities Ukraine observes internationally recognized system of goods classification and coding, as well as a unified export and import declaration.
Depending on the reason for transporting the goods through customs, the following customs regimes may be used:
This list of regimes is exclusive; other regimes cannot be used. The declarer must choose independently which regime is appropriate.
The import regime is used when goods are brought into the customs territory of Ukraine for free turnover without limitations on term or use.
The re-import regime is used when Ukrainian goods are exported for non-profitable purposes, but will be re-imported into Ukraine within one year. Under the re-import regime the duty must be returned.
The export regime applies when goods are to be exported outside Ukrainian borders for free use without limitation on their return.
The re-export regime requires prior governmental approval. Under this regime, foreign goods may be imported into Ukraine for up to one year. If the goods are used for non-profitable purposes, they can then be re-exported tax free.
The transit regime applies to goods which are passing through Ukraine. Their use for any purpose other than transit is forbidden. In certain cases the Cabinet of Ministers is authorized to determine routes and itineraries for the transportation of goods through Ukraine.
The temporary import regime requires specific documentation to prove that the goods are for onward export.
Under the customs storage regime, goods may be stored in the territory of Ukraine for up to three years, with some restrictions on certain types of goods (eg, excised goods can only be stored for a maximum of three months).
Under the goods processing regimes goods may be cultivated, developed, assembled or repaired inside or outside Ukraine. As a rule, the duration of processing should not exceed 90 days.
The new Customs Code substantially reforms Ukraine's customs system. Re-import
and re-export are once again permitted. Under the re-import regime, exporters
will be able to return goods which the buyers have rejected. The re-export regime
allows for goods which have been imported into Ukraine goods to be re-exported
without triggering any taxes.
For further information on this topic please contact Sergei Konnov or Anna Tymofyeyeva at Konnov & Sozanovsky by telephone (+380 44 490 5400) or by fax (+380 44 490 5490) or by email (email@example.com).
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Sergei V Konnov