Customs duties

Normal rates and notification requirements

Where are normal customs duty rates for your jurisdiction listed? Is there an exemption for low-value shipments, if so, at what level? Is there a binding tariff information system or similar in place? Are there prior notification requirements for imports?

The Ukrainian Classification of Commodities of Foreign Economic Activity is based on the six-digit Commodity Description and Coding System (used for the purpose of accounting for the exports and imports of goods), which is developed on the basis of the Harmonized Commodity Description and Coding System. Under the classification, goods are codified in sections, groups, trade positions and sub-positions, and their names and digital codes are unified and assigned with respective tariff rates. Customs duty rates are listed in Law No. 584-VII on Customs Tariff, 19 September 2013. As a WTO member, Ukraine is subject to the goods schedule indicating bound rates. The information on binding tariffs and applied rates can be accessed at www.wto.org/english/thewto_e/countries_e/ukraine_e.htm. No prior notification is needed for imports under Ukrainian legislation.

Ukrainian laws provide for tariff preferences to e-commerce imports. Since 1 July 2019, amendments to the Tax Code of Ukraine have come into force that decrease the tax-free maximum threshold to a total invoice value of the shipment not exceeding €100 per person and total customs value of the shipment not exceeding €150 per legal entity (article 196.1.17 of the Tax Code Of Ukraine).

Under the Customs Code of Ukraine the import duty-free threshold amounts to an invoice value of €150 (artIcle 374.6 of the Customs Code of Ukraine). Shipments with an invoice value ranging between €150 and €10,000 are subject to a 10 per cent import duty plus VAT (in the amount of 20 per cent) enshrined in the Tax Code of Ukraine (article 374.7 of the Customs Code of Ukraine).

Special rates and preferential treatment

Where are special tariff rates, such as under free trade agreements or preferential tariffs, and countries that are given preference listed?

Unlike the EU, Ukraine has no generalised scheme of preferences, and consequently only those countries having FTAs with Ukraine can benefit from preferential tariffs. At the time of writing, Ukraine has FTAs with the EU, CIS countries (except for Russia since 2016), Macedonia, Georgia, Montenegro, the EFTA states and Canada, and is concluding an FTA with Israel (currently signed, but not yet ratified). Ukraine is also negotiating an with FTA with Turkey.

Import duty is differentiated in respect of the goods originating from countries that are members of customs unions with Ukraine or which form free trade zones with it. In case of the introduction of any special preferential customs procedure in accordance with international treaties ratified by the parliament of Ukraine, the preferential rates of import duty set by the customs tariff of Ukraine shall be applied.

Preferential rates of import duty set by the customs tariff of Ukraine shall be applied for goods originating from Ukraine or member countries of the WTO or the countries with which Ukraine has entered into bilateral or regional agreements under MFN treatment.

How can GSP treatment for a product be obtained or removed?

Ukraine does not grant GSP treatment to any country. Only countries subject to FTAs with Ukraine have preferential tariffs. In order to benefit from the regime, the company concerned must provide the customs authorities with a valid certificate of origin confirming that the product is produced in the territory of the FTA member state. In the case of the Agreement on Free Trade Area of 2011 between Ukraine and other CIS countries, tariff rates on imports are mainly eliminated, and export duties are fixed with a further reduction. Generally, all tariff rates and other trade liberalisation measures are prescribed and fixed in respective trade agreements. For instance, the EU-Ukraine Association Agreement also contains in its annexes the schedules of tariff rates on imports and exports, and other measures subject to implementation and execution with respect to preferential trade regime.

Is there a duty suspension regime in place? How can duty suspension be obtained?

Ukraine has no system where the company concerned can submit a request for a duty suspension regime. A general system of duty exemption is determined, however, by the Customs Code of Ukraine (article 282), where the goods subject to exemption are listed. Among such goods are means of transport for commercial use, raw materials, and oil engaged in scheduled international transportation of goods or passengers (or both), as well as items necessary for their normal operation, Ukrainian currency, foreign currency, securities, goods that are imported within the framework of international technical assistance under international treaties, goods for product-sharing agreements, archival documents, several types of pharmaceutical products, equipment for the purpose of alternative energy, and goods and items paid for at the expense of grants (sub-grants) provided, for example, under the programme of the Global Fund to Fight AIDS, Tuberculosis and Malaria in Ukraine.

In May 2015, the President of Ukraine signed laws providing amendments to the Customs Code and Tax Code of Ukraine prescribing exemption of defence products from import duties. The exemptions apply to components (materials, components, parts, equipment and component parts) that are imported into Ukraine for use in the production of defence products if the customer of such products is the state. At the same time, these products are not exempted from import duty if they originate or are imported from the territory of a country recognised as an occupying state or aggressor in relation to Ukraine under the law.

Besides that, items such as goods imported into the customs territory of Ukraine within the framework of international technical assistance in accordance with international treaties, goods (raw materials, products, machinery and equipment) coming to Ukraine under international technical assistance given on a free and irrevocable basis for further service, preparation for decommissioning, and decommissioning of power-generating units of the Chernobyl nuclear power plant, goods or items paid for at the expense of grants (sub-grants) provided under the programme of the Global Fund to Fight AIDS, Tuberculosis and Malaria in Ukraine, goods treated as humanitarian aid and goods imported into the customs territory of Ukraine to the address of the Red Cross Society of Ukraine are subject to exemption from specific types of duties.

Furthermore, there exists a temporary admission regime (article 103 of the Customs Code of Ukraine). Goods subject to this regime shall be fully or partially exempted from payment of import duties. The list of such goods is prescribed in articles 105 and 189 of the Customs Code of Ukraine and in Annexes В.1-В.9, С and D of the convention on temporary admission.

Challenge

Where can customs decisions be challenged in your jurisdiction? What are the procedures?

The Customs Code of Ukraine No. 4495-VI of 13 March 2012 (the Customs Code), has been in force since 1 June 2012 (last amended 4 April 2018). With regard to challenging the actions of customs authorities, the Customs Code envisages two types of appeal. The first is pre-trial appeal of the decisions, acts and omissions of the customs authorities, and the second (article 29 of the Customs Code) is a judicial procedure, which is regulated by separate law. Article 29 states also that if the decisions, acts or omissions by a state fiscal authority or its officials are appealed both at a supreme authority (superior public official) and in court and the court initiates a legal proceeding, such appeal shall no longer be proceeded by the said supreme authority (superior public official). Article 24 of the Customs Code contains the list of decisions, acts and omissions that may be challenged. Moreover, in comparison to the previous version of the Customs Code, such list includes not only particular decisions of customs authorities on the customs issues that may be challenged, but also the decisions that satisfy or refuse to satisfy the complaints of legal or natural persons.

Decisions, acts and omissions may be appealed to higher authorities and officials. Superior public officials in respect of the officials and other employees of the state fiscal authorities are the chief executives of those authorities. Higher authorities are the following:

  • for customs officials - the heads of the customs authorities;
  • for customs posts - the head of that branch of customs posts;
  • for customs of the specialised customs authorities and customs organisations - the State Fiscal Service; and
  • for the State Fiscal Service - the Ministry of Finance of Ukraine.

Requirements regarding the form and content of the complaints, the terms of their submission, and the procedure and terms for their consideration, as well as liability for illegal actions related to submission and consideration of the complaints, are determined by the Law of Ukraine No. 393/96-BP on Public Appeals. A duly submitted complaint on the decision, act or omission of the customs authority shall be considered for not more than one month (may be urgently or within 15 days), but may be extended to up to 45 days. Moreover, the term of consideration may be even shorter if the citizen duly substantiates the reason. A complaint shall be submitted within one year after the decision is adopted, but not later than one month after notification of the decision. The judicial procedure implies filing the case before the relevant administrative court.