Ukraine is starting the implementation of the European regulations for the transit of goods

As a part of the systemic customs reform, the first step has been made to implement the European regulations for the transit of goods in Ukraine. The decision has been made today at the meeting of the Government following the request of Minister of Finance Oleksandr Danyliuk.

What’s it all about?

The adopted draft law stipulates amendments to the Customs Code of Ukraine adjusting the Ukrainian transit procedures to the European standards as per the Convention on the Unified Transit Procedure and the Convention on Simplification of Formalities in Trade.

Thus, it is planned to use the types of customs declarations similar to those used in the EU for the joint transit procedures in trade between the countries which are the parties of the above Conventions.

It is also planned to use information and telecommunication systems based on European technologies and used at the international level for customs formalities in Ukraine.

Why is it important?

The adoption of the draft law launches the procedure of joining the Convention on the Unified Transit Procedure and the Convention on Simplification of Formalities in Trade.

This will enable Ukraine to apply the common transit procedure of the European Economic Community and the European Free Trade Association.

The implementation of the European transit regulations is also one of the obligations of Ukraine in line with the Association Agreement with the EU.

What’s in it for Ukraine?

The adoption of the draft law enables Ukraine to launch the implementation of the European transit regulations (including the development of ІТ solutions and test operation of the European system) which must result in an official invitation for Ukraine to join the above Conventions.
The participation of Ukraine in the unified transit procedures has a number of advantages: 
- warrants provided by Ukrainian banks will be valid in all countries which are parties of the Conventions;
- it won’t be necessary to declare export goods at the EU border (this will be made in Ukraine, for export consignments);
- information exchange will be established for goods transferred through the common border of Ukraine and EU countries;
- application of the European transit regulations will enable companies to apply a single customs declaration and a single warranty for the movement of goods from their warehouse to the facilities of their partners. This will result in a significantly faster and cheaper transfer of goods, which is of advantage for all participants of the supply chain – exporters, forwarders and importers;
- the Ukrainian customs will also reduce the number of customs formalities for the control of transit goods and will be receiving preliminary information from the customs authorities of other countries prior to the arrival of goods to the Ukrainian border. This will enable the Ukrainian customs to check customs risks before the arrival of goods to Ukraine and to select relevant forms of the customs control without delaying shipments at the border by visual examinations and other control procedures.

Additional information:

To launch the test operation of the new computerized transit system (NCTS) at the national level, the Ministry of Finance has issued the decree today – “On the adoption of amendments to some of the customs information classifications which are used for the release of customs declarations”. This order adjusts the codes of some documents and types of customs declarations to the European classifications.