Ukraine news: August/ September 2021
Photo by Tetiana Shevereva on Unsplash (Kyiv, Ukraine)
News in international trade in September at a glance: duty rates on imports from the EU for 2022 were published; new safeguard and anti-dumping measures were established on imports of cement, wires and cables; new safeguard and anti-dumping investigations on imports of PVC profile and PVC windowsill boards, aluminum ladders, seamless cold-drawn and cold-rolled pipes; e-service for submitting an application for AEO authorization.
2022: duty rates on imports from the EU
The Ministry of Economy has traditionally published on the Ministry's website information on Ukraine's import duty rates, which will be applied in 2022 to imports of goods originated from the EU.
Started from 2022, the 0% duty rate will apply to the wider range of goods. For example, the goods of textile (clothes, lingerie and shoes) mostly are imported to Ukraine with a 10% duty rate. In 2022 this rate will be 0%.
A similar situation is with livestock and meat, dried/salted fish (Pacific salmon, tilapia), shellfish and seafood. Also, materials and goods made of stone, cement and gypsum products (HS code headings: 6801-6815) will be imported to Ukraine with 0% duty.
New safeguard and anti-dumping measures were established
On the 14th of September, the Interdepartmental Commission on International Trade established new safeguard and anti-dumping measures:
- final anti-dumping duty regarding the import of incl. clinker cement, and Portland cement, originated from Turkey for 5 years (HS codes: 2523 10 00 00, 2523 21 00 00, 2523 29 00 00). The size of duties varies from 32,64 % to 50,54 % and will come to force in 30 days.
- Safeguard duty regarding the import of wires and cables (HS codes: 8544 49 20 00, 8544 49 91 00, 8544 60 10 10, 8544 60 10 98, 8544 60 90 10, 8544 60 90 90, 8544 70 00 10, 8544 70 00 90) regardless the state of origin. The 23,5% duties are established for 3 years for all importers, except some countries (e.g. EFTA states).
The established measures can be appealed to the court in the course of 30 days after the date of official publication. The company can file such a claim to the administrative court, located in Kyiv.
New safeguard and anti-dumping investigations
At the beginning of September, the Interdepartmental Commission on International Trade opened three new trade investigations:
- Safeguard investigations regarding the import of PVC profile and PVC windowsill boards (HS codes: ех3916 20 00 90 and ех3925 90 80 00) regardless of the state of origin.
- Anti-dumping investigation regarding the import of aluminum ladders (HS code: ex7616 99 90 00) from China, the Slovak Republic, the Republic of Poland, and the Republic of Belarus.
- Anti-dumping investigation regarding the import of seamless cold-drawn and cold-rolled pipes originating from China (HS codes: 7304 31, 7304 51).
The companies, which represent both - national manufacturers and importers - can be registered as an interested party in the investigations till the 30th of September.
The safeguard investigation lasts not longer than 270 days (on specific occasions, it can be extended to 330 days). In turn, the term for anti-dumping investigation is one year (on specific occasions, it can be extended to 18 months). As the result of investigations, safeguard and anti-dumping measures can be established: duties, quotas, etc.
E-service for submitting an application for AEO authorization
The State Customs Service of Ukraine has introduced software that allows companies to submit applications for AEO authorization and self-assessment questionnaires. This opportunity is implemented on the Unified State Information Web Portal "Single Window for International Trade" (https://cabinet.customs.gov.ua). Access to the system is provided after passing the identification of the applicant with a qualified electronic signature.
Additionally, two more companies in Ukraine applied for AEO authorization in September.
Revision of special measures on imports of sulfuric acid and oleum into Ukraine, regardless of the country of origin and export
At the beginning of August, the Interdepartmental Commission on International Trade decided to review the special measures on imports of sulfuric acid and oleum. Such measured were provided for the whole import of such goods into Ukraine, regardless of the country of origin and export.
In July 2018, the Commission applied import quotas that were based on the results of a special investigation. The duration of such measures - till August 2021 (now). The ending of the term for applying such quotas - the purpose for such revision. Moreover, the statistic showed that special measures had a positive impact on the business activity of national producers. However, the damages have not been eliminated yet.
As a result of the revision, the special measures can be extended or terminated. For making the final decision, the Commission will consider the interests of both sides - importers and national producers of these goods.
The first steps to conclude the Agreement on Conformity Assessment and Acceptance of Industrial Goods were done
The Ministry of Economy has developed an Action Plan to reform the system of technical regulations in Ukraine. This Action Plan covers the period till 2025. The document is ready for consideration and adoption by the Government of Ukraine. Adoption of such a Plan is a necessary condition for concluding an Agreement on Conformity Assessment and Acceptance of Industrial Goods (ACAA Agreement).
The Plan provides the procedures and deadlines for:
- adoption of technical regulations for food, medical products, construction industry, transport, household appliances, eco-design, etc;
- changes in legislation that is needed, regarding the state market control of non-food products;
- development of the reference base of national metrology;
- improvement of the national standardization system etc.
Unconstitutionality of the confiscation of goods in the customs zone of simplified control
The Constitutional Court of Ukraine made the decision about the unconstitutionality of the confiscation as a non-alternative sanction for custom’s rules violation. It was connected the confiscation as the punishment for transferring prohibited goods in the customs zone of simplified control.
The unconstitutionality relates to the absence of alternative punishment that can be applied. For example, the punishment provided by the Customs Code for such violation does not consider the severity of the offence.
However, for many violations of customs rules is provided only one kind of punishment, which usually has a fixed amount. For example, the common sanction for customs violation is a fine with a fixed amount.
Such motivation of the court and its decision can cause new cases related to other non-alеrnative sanctions, provided in the Customs Code of Ukraine. Additionally, it will have a positive effect on importers, because non-alternative fixed high fines are currently a burden on businesses.