Ukraine introduces European rules of transit of goods

The Cabinet of Ministers of Ukraine has approved a draft bill providing amendments to the Customs code on the harmonization of the transit procedures in line with European standards. The decision was taken at a meeting of the government on the proposal of the Finance Minister Alexander danyluk, reports the press service of the Ministry of Finance.

As noted in the Ministry, thus in the framework of systemic reform of customs made the first step to introduction in Ukraine of European rules of transit of goods.

The essence of the bill. The adopted draft Law provides for amendments to the Customs Code, which will allow transtria procedures to European standards, namely the Convention on common transit and Convention on the simplification of formalities in trade in goods.

In particular, it is planned to use in Ukraine of certain types of customs declarations, similar to those used in the EU for the common transit procedure in trade between the parties.

Also provides for the implementation in Ukraine of customs formalities with the use of information and telecommunication systems, Which are based on European technology and operates at an international level.

The importance of the bill. The bill begins the process of Ukraine’s accession to the Convention on common transit regime and the Convention on simplification of formalities in trade in goods.

It will give Ukraine the possibility to use the common transit procedure of the European economic community and the European free trade Association.

The introduction of European rules of transit of goods is also one of the obligations of Ukraine in accordance with the Association Agreement with the EU.

The value of the bill for Ukraine. The bill will allow Ukraine to begin the process of introduction in Ukraine of the European rules on transit of goods (including the development of it solutions and pilot operation of the European system), which shall culminate in a formal invitation to accede to the Conventions.

Participation of Ukraine in the common transit regime also has a number of advantages:

  • guarantees issued by Ukrainian banks, will be valid on the territory of all parties to the Convention;
  • no need of Declaration of export goods to the EU border (this will be done in Ukraine, for export shipment).
  • the issue of information exchange on goods crossing a common border of Ukraine and countries-members of EU.
  • the use of European transit rules will allow companies to use a single customs Declaration and a single guarantee for the movement of goods from its members in the company. As a consequence, will significantly accelerate and reduce the cost of movement of goods, which should benefit all participants in the supply chain – exporters, carriers, importers.
  • Ukrainian customs, in turn, will also reduce the number of customs formalities necessary for control of transit movements and customs of other countries with advance information on goods prior to their crossing of the Ukrainian border. This allows you to analyze transactions in terms of their risk before arrival of goods to Ukraine, reasonably determine the forms of customs control, thereby delaying cargoes at the border by customs and other control procedures.