Reforming the Regulation of Factoring, the Same with EU Product Classification

The Concept of Reforming the Regulation of Factoring in Ukraine has been Approved

On 23.06.2023, the National Bank of Ukraine finalized and approved the Concept of reforming the regulation of factoring in Ukraine based on the results of public discussion.

The changes envisaged by the Concept have the following main directions:

• delineation of the regulation of trade factoring and operations with financial debt: the activities of service providers for the assignment of a claim under consumer credit agreements will be carried out within the limits of the license, which will establish the right to provide funds on credit and will be incompatible with the provision of trade factoring services;
• implementation of the provisions of the model law of the International Institute for the Unification of Private Law on factoring into the legislation of Ukraine;
• introduction of state registration of the assignment of a claim, which, in particular, will make it possible to reduce the risk of fraud during the implementation of factoring activities and contribute to the transparency of the factoring market.

Based on the Concept, the National Bank plans to develop a draft of amendments to the current legislation of Ukraine with the aim of its further transmission to the subjects of the legislative initiative for consideration.

Changes regarding the Same with EU Application of Product Classification Approaches have been Approved

On 24.06.2023, the Cabinet of Ministers of Ukraine adopted the Resolution with the aim of ensuring the implementation of the provisions of EU legal acts into Ukrainian legislation regarding the consideration of approaches to the classification of goods according to the EU Combined Nomenclature.

As reported by the Ministry of Finance, this will contribute to the uniform application of the rules of classification of goods by all customs authorities when making decisions on the classification of goods in accordance with Ukrainian classification of goods, and decisions on binding information on the classification of goods.