Classification of Goods on Customs, Transport Visa-Free Regime has been Extended

The Updated Procedure for Classification of Goods on Customs is Entered into Force

On 14 March 2023, the Order of the Ministry of Finance of Ukraine No. 455 dated 23.12.2022 entered into force, which incorporates into the Ukraine legislation the European model whereby the customs authorities issue preliminary decisions on classification of goods and determining the country of origin thereof upon the companies’ request.

The Order approves, inter alia, the procedure for:

  • making decisions on binding information on the classification of goods and determining the country of origin of such goods, including forms of applications and decisions;
  • extension of the validity of such decisions;
  • examination of samples of goods for decision-making by the customs authority.

Decisions on binding information, the validity of which is 3 years (with the possibility of further extension), guarantee business legal certainty and the immutability of the position of customs authorities regarding the classification of goods or the determination of the country of origin of such goods.

According to the statement of the Ministry of Finance, this will contribute to increasing the level of predictability of conducting foreign economic activities, including providing the opportunity for businesses to have information in advance on the level of import duties that will be taxed on imported goods.

In addition to “new” goods that have not yet been imported into Ukraine, an enterprise also has the right to receive a decision on binding information on goods that have already been cleared by customs.

After making such a decision regarding the binding information, it is mandatory for both an enterprise and the customs authority.

In the event that the customs authority cancels the decision on binding information, an enterprise can apply to the customs and obtain the right to use such a decision for a period of up to 6 months. This will allow an enterprise to complete foreign economic operations under the conditions specified in the annulled decision.

The Validity of the Transport Visa-Free Regime has been Extended

According to the statement of the press service of the Ministry of Community Development, Territories and Infrastructure, the Agreement on Liberalization of Freight Traffic between Ukraine and the EU dated 29.06.2022 has been extended until 30 June 2024.

Let us please remind you that this document canceled the need for Ukrainian carriers to obtain appropriate permits for bilateral and transit transportation in EU countries.

In addition, the Agreement also simplifies the procedure for recognizing driver’s licenses. Ukraine and the EU exempted holders of driver’s licenses issued by one of the parties from the requirement to have an international driver’s license.