First Chair Legal: News in international trade

Some major news in international trade you need to know about Ukraine (as of July 01):

EU candidate status for Ukraine.

European leaders granted Ukraine EU candidate status on 23rd June 2022. To maintain the status of the candidate, Ukraine shall implement seven blocks of reforms (including reform of the Constitutional Court; continuing judicial reform, etc.).

Ukraine – EU: ‘Visa-free transport regime’

Ukraine signed the ‘Visa-free transport regime’ with the EU in late June. It provides no need to obtain a permit for bilateral and transit transportation by Ukrainian carriers. This Agreement is extremely important during wartime as it seriously accelerates logistics processes between the EU and Ukraine.

Ukraine is close to becoming a party to the Convention on a Common Transit Procedure.

Ukraine is waiting for a positive response from EU assessment mission to Ukraine's preparation to join the Convention on a Common Transit Procedure (NCTS). The Convention provides a simplified transit mode, so the transit procedures started in Ukraine may end in other states-parties of the Convention and on the contrary.

Grain Lane.

The European Commission (together with V_labs and Rail Cargo Group) creates a grain trading platform. It calls Grain Lane. The platform simplifies the process of export deliveries, as it places trade and transport requests from European and Ukrainian partners at once.

Export prohibitions.

The Government of Ukraine added new items to the list of goods prohibited for export during the martial law period. Zero quotas were set for the following goods:

• liquid fuel (fuel oil);
• coal, anthracite, briquettes, pellets, and similar solid fuels derived from coal (excluding cooking coal);
• natural gas of Ukrainian origin.

Abolition of duty-free import.

The Parliament of Ukraine passed a bill to abolish the duty-free import of goods into Ukraine. The law resumes the payment of duties, excise tax, and VAT for the import of goods. The changes have come into force since the 1st of June.

EU: suspension of import duties on Ukrainian goods.

The decision on suspension of import duties on Ukrainian goods came into force on the 4th of June 2022. The trade-liberalization measures mean the suspension of:

• import duties;
• entry price system for fruit and vegetables;
• tariff-rate quotas;
• anti-dumping duties on imports originating in Ukraine.

The suspension will last until 5th June 2023.

Ukraine - UK: abolition of import duties in trade.

The Verkhovna Rada ratified the Agreement on the abolition of import duties and tariff quotas in trade between Ukraine and the United Kingdom. From now on, the ratification law must be signed by the President. For starting to apply the provisions of the Agreement, the UK Parliament should ratify it too.

Ukraine - Poland: memorandum on trade facilitation.

Ukraine and Poland signed a memorandum on the development of trade facilitation instruments. The memorandum provides mechanisms of insurance for goods and cargo imported into Ukraine. This necessity arose due to the need to protect the goods from the constant threats of the aggressor.

Infringements of customs formalities.

New rules of bringing to administrative responsibility for violation of the order of customs declaration of goods came into force. Previously, certain provisions of Article 471 of the Customs Code of Ukraine were recognized as unconstitutional in July 2021.

From now on, the Customs Code provides new sanctions for the following acts:

• non-declaration of currency values, which exceeds the amount allowed by the legislation of Ukraine;
• non-declaration of goods (except for restricted and/or prohibited movement across the customs border of Ukraine, as well as currency values);
• non-declaration of goods restricted and/or prohibited for movement across the customs border of Ukraine.

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