The Verkhovna Rada Adopted the EU-Integration Draft of the New Customs Code of Ukraine in the First Reading

The Verkhovna Rada of Ukraine supported in the first reading Draft Law No. 15450 – the new Customs Code of Ukraine. The document, developed over nearly two years by the teams of the Ministry of Finance, the State Customs Service, and the Verkhovna Rada Committee on Finance, Tax, and Customs Policy in close cooperation with business, international experts, and the public, received a positive assessment from the European Commission. It creates a legal framework for transitioning to unified customs rules, terminology, and security standards with the European Union, representing a key step toward Ukraine's accession to the EU Customs Union.

"The adoption of the new Customs Code of Ukraine is a necessary condition for Negotiation Chapter 29 'Customs Union' and for bringing Ukraine closer to EU membership. The unified customs rules proposed in the document ensure procedural transparency for businesses, while opening new opportunities for the economy in exports, investment attraction, and integration into European supply chains. At the same time, the adoption of the new Customs Code is one of the conditions for receiving macro-financial assistance (Ukraine Support Loan), which will allow Ukraine to attract EUR 1.5 billion to the state budget to cover key expenditures," emphasized Minister of Finance Sergii Marchenko.

The draft of the new Code is structured according to the logic of European customs legislation and consists of 781 articles. Its entry into force is scheduled for December 1, 2027 – giving business and customs time to adapt, while the transition to new electronic systems will be completed in stages by the end of 2029.

Key Innovations

• EU Terminology and Approaches. A complete transition to European Union customs terminology, the introduction of an authorization system and customs procedures, as well as a European approach to decision-making, declaration, customs debt, guarantees, and duty exemptions.

• Continuity for Business. Existing indefinite authorizations will remain valid, while fixed-term authorizations will remain effective until their expiration date. Companies holding Authorized Economic Operator (AEO) status will retain the benefits of being a trusted customs partner: lower volume of physical and documentary control, priority clearance, and, in the future, mutual recognition of status by customs authorities of other countries.

• "Right to Be Heard." A procedure is introduced allowing businesses to substantiate their customs value before a formal decision is made by customs, which is expected to reduce the number of court disputes.

• Full Digitalization. The Code establishes data exchange between business and customs through an electronic "single window," where permits from other authorities will be submitted automatically. For entrepreneurs, this means less paperwork, fewer personal visits to customs offices, and less room for subjective decisions – thereby reducing corruption risks.

• Transparent Appeals Procedure. A clear procedure for appealing decisions, actions, or omissions of customs authorities is established – initially to a higher-level authority, and, if necessary, to court – aligned with the Law of Ukraine "On Administrative Procedure."

• Preserved Exemptions. The draft fully preserves existing import duty exemptions, particularly for supporting defense capability, energy sector, and humanitarian aid provision. For the period of martial law and one year following its termination, exemption thresholds for goods in personal baggage are also retained (up to EUR 500 / 50 kg via land transport and up to EUR 1,000 / 50 kg via air transport).

• Operational and Investigative Powers of Customs. The Code provides customs authorities with operational and investigative powers – a practice common across 25 EU Member States. These provisions will not enter into force simultaneously with the adoption of the Code: criteria and limits of customs officers' powers will be separately defined through amendments to the Criminal Procedure Code and other laws following consultations with the Prosecutor's Office, business, and experts.

What's Next

The draft law has been adopted as a basis. All proposals from People's Deputies of Ukraine will be processed during its preparation for the second reading.

"Our common goal is to adopt a high-quality Customs Code within the timeframe specified by the terms of macro-financial assistance. In October, we must present the signed law to our international partners. This will allow receiving funds from the European Union to finance priority budget expenditures – salaries for teachers and healthcare workers, pensions, social support, aid for small and medium businesses, as well as the reconstruction of damaged social facilities and critical infrastructure," noted Sergii Marchenko.

According to the Minister, the new Customs Code will help Ukrainian exporters adapt to the EU market faster, optimize logistics, enhance competitiveness, and transform Ukrainian customs into a European-standard border control system.