New Customs Code passed first reading: businesses to be switched to EU rules
On August 19, the Verkhovna Rada supported in first reading the draft of the new Customs Code of Ukraine No. 15450. The document is to restructure customs operations according to the European Union model and change a number of procedures for Ukrainian importers and exporters.
Ukrinform reports the adoption of the draft as a basis. It concerns the government draft of the Customs Code No. 15450, registered in the Verkhovna Rada at the end of July.
The document is one of the key draft laws within the negotiations on Ukraine's accession to the European Union under Chapter 29 "Customs Union". The new code is to bring Ukrainian customs rules as close as possible to the EU Customs Code and related European legislation.
What changes for business
The draft provides for a full transition to EU customs terminology and restructuring of the customs procedures system. In particular, European approach is to be applied to rules for customs decisions, goods declaration, determination and repayment of customs debt, provision of guarantees, and exemption from customs duties.
The system of authorizations used by enterprises to obtain customs simplifications is also changing. The authors have provided for a transition period so that companies do not have to re-register already obtained permits all at once.
As the Ministry of Finance explains, existing authorizations are to continue operating after the transition to the new code. Indefinite permits will retain their validity, and fixed-term ones – until the end of the established period or relevant operations.
Similarly, uninterrupted operation of the "Single Window for International Trade" mechanism is planned for business. This should allow companies to switch to the new regulatory framework without stopping familiar customs processes.
The reform also provides for further development of electronic customs systems – for import, export, international transit, advance information, and centralized customs clearance. According to the government's design, Ukrainian systems are to integrate increasingly closely with the EU's digital customs infrastructure.
The code will be changed before the second reading
The document adopted on August 19 is still only a first reading version. Therefore, the new rules do not take effect immediately, and the draft itself still has to undergo preparation and voting in the second reading.
Head of the parliamentary Committee on Finance, Tax and Customs Policy Danylo Hetmantsev earlier reported that during the preparation of the draft, the committee separately identified a number of provisions that need to be reviewed.
In particular, the discussion concerns granting customs additional law enforcement and operational-search powers. Hetmantsev opposed their introduction until the reform of the State Customs Service is completed and business trust in customs authorities increases.
The committee also supported the need to refine the mechanism for selecting the head of the State Customs Service – the competition is proposed to be held with the participation of international experts. In addition, the introduction of an annual independent external audit of the performance of customs authorities is being discussed.
Why Ukraine needs a completely new code
The new Customs Code consists of hundreds of articles and is effectively to replace the current regulatory basis for customs operations, not just make individual amendments to it.
Its structure is built according to the logic of European customs legislation: the main sections correspond to the structure of the EU Customs Code, certain parts implement European regulations, and transitional provisions determine the procedure for the system's operation until Ukraine's accession to the European Union.
For companies engaged in foreign economic activity, the reform should mean gradual convergence of Ukrainian and European procedures. This is especially important for exporters and importers who simultaneously work with customs systems of Ukraine and EU countries.
At the same time, the final model will become clear only after the second reading, as a significant number of amendments may be introduced to the document. After the final adoption, a transition period for adaptation of business and customs authorities is also envisaged.
Kurs Ukraine previously wrote that the preparation and adoption of the new Customs Code is included in the list of reforms related to Ukraine's fulfillment of obligations to the European Union and receipt of European funding.
Based on materials from: Ukrinform, Danylo Hetmantsev, Ministry of Finance of Ukraine
