Harmonization of the Customs Tariff, Procedure for Submitting Data on UBOs Simplified, Prozorro changed the rules

Harmonization of the Customs Tariff: Law entered into force

On 01.01.2023, Law of Ukraine No. 2697-IX “On the Customs Tariff of Ukraine” entered into force.

Let us please remind that according to the Law, the Customs Tariff of Ukraine was harmonized with the global classification of goods, in particular, in the part of the product nomenclature; forms of foreign trade documentation.

The Law does not change import duty rates.

Procedure for Submitting Data on UBOs Simplified: Law entered into force

On 29.12.2022, Law of Ukraine No. 2571-IX “On Amendments to Certain Laws of Ukraine on Improving the Regulation of Ultimate Beneficial Ownership and Ownership Structure of Legal Entities” entered into force.

In particular, the Law:

  • establishes that the verification of information about the UBO is carried out during registration actions (except for registration of termination), but only in the event that a legal entity submits such information;
  • obliges legal entities to keep information about UBO up-to-date and to submit documents on changes within 30 working days from the date of its occurrence;
  • terminates the requirement to notarize copies of the UBOs’ identification documents,
  • permits to file the documents in electronic form using a qualified electronic signature,
  • excludes the obligation of legal entities to annually confirm information about the UBO;
  • increases responsibility for non-submission and/or incorrect submission of information on the UBO by a legal entity: for the commission of such offenses is provided a fine from 17 000 to 340 000 UAH.

The Law provides that the Unified State Web Portal of Electronic Services will automatically verify data provided electronically.

Let us please remind that according to the Letter of the Ministry of Justice of Ukraine No. 60780/8.4.3/32-22 dated 26.07.2022 the obligations established by Law of Ukraine No. 361 on updating of information on the UBO are subject to the provisions of Law No. 2115, which defines the peculiarities of reporting during the period of martial law. Therefore, legal entities have the opportunity to submit information about the UBO within three months after the termination or cancellation of martial law for the entire period of non-submission of such reports or the obligation to submit documents without incurring any legal liability.

New Procedure on Organization and Maintaining Military Records

30.12.2022 The Cabinet of Ministers of Ukraine adopted Resolution No. 1487, which approved the new Procedure on Organization and Maintaining Military Records of Conscripts, Liable for Military Service and Reservists.

Among the main innovations:

  • Military registration is carried out on the basis of the previously created the Unified State Register of conscripts, liable for military service and reservists (the Register) by place of registration of such persons. If the persons change their place of registration, residence and/or other registration data, they have to report this within 7 days. Conscripts / liable for military service / reservists shall be able to update data about their place of registration in the Diya Portal without visiting military recruiting centers.
  • Registration data of conscripts, liable for military service and reservists shall be verified at least once a year. Every year by 25 January, heads of government bodies, enterprises, institutions and organizations shall approve lists of personal military records. Persons who are responsible for keeping military records shall arrive at the military recruiting centers to reconcile and approve the lists.
  • Employment or enrollment for studying of conscripts, liable for military service and reservists shall be carried out only after checking their military registration documents (military registration certificate, military ID). Within a period of 7 days from the moment of hiring / enrollment for studying or firing / dismissal, the employer/educational institution informs military recruiting centers about it.
  • Employers / educational institutions shall notify conscripts, liable for military service and reservists about the obligation to report to military recruiting centers; also serves summonses.
  • Persons who are responsible for keeping military records have to meet the qualification requirements defined for the inspector of military records (according to the classifier of professions). If such persons are appointed from the company’s staff, a 50% supplement to the official salary is established for them. Also, they have to undergo certification training every five years.
  • Diplomatic institutions of Ukraine shall facilitate the return of conscripts, liable for military service and reservists in a special period. The military recruiting centers shall inform about such persons who are in consular circulation abroad.

Currently, the official publication of the Resolution is expected. It is entering into force from the following day after publication.

The Government’s Decision on Temporarily Canceling of Auctions on Prozorro

On 03.01.2023 Resolution No. 1495 of the Cabinet of Ministers of Ukraine dated 30.12.2022 entered into force, providing for the temporary cancelation of electronic auctions in the Prozorro system.

The changes will be in force within six months from the date of official publication of the Resolution and may be revised in case of stabilization of the energy system of Ukraine.

According to the statement of the Ministry of Economy of Ukraine, due to constant shelling by the russian federation of energy infrastructure facilities, not all bidders in the Prozorro electronic procurement system have the opportunity to participate in electronic auctions, which is why the Government decided to temporarily change the rules of electronic bidding.

In addition, the Minister of Economy of Ukraine Yuliya Svyridenko emphasizes that the Government has not canceled the bidding on Prozorro. The Resolution only changed the rules of electronic bidding: from now on, the winner will be the one who gives the lowest price during the first offer.