Customs duty
Customs duty ) is a special compulsory type of tax, collected by the custom authorities of a country when goods are brought into or out of its customs territory. This tax is an integral term of such import and export under domestic law. The rate of customs duty is determined by the customs tariff (in Ukraine it is the Law of the consolidated customs tariff), which contains the lists of customable goods. Customs duties are called both to protect the domestic producer, artificially inflating the prime cost of imports, and to act as a source of budgetary funds. In Ukraine the rate of duty is single and unaltered in relation to the entities that carry out the goods transportation across the customs border of Ukraine; it is independent on the kind of deal, except the cases stipulated by the Law of Ukraine and the Customs Code particularly.
In Ukraine the following rates of duty are applied: ad valorem tax (usually is assigned in percentage of the goods value), specific (which is calculated based on the volume, weight or item count, as opposed to value) and combinating (combining both methods). For protective purposes against low-grade goods and unfair competition (and other cases stipulated by the Law) of the country’s economic interest and its domestic market special kinds of customs duty can be provisionally imposed on goods when they are moved across a political boundary: specific, antidumping and combinating. In addition, season duty can be imposed; a full relief from customs clearance charge can be applied for some goods manufactured particularly in the CIS countries provided that all the requirements are met. Duty charge, payment and collection of goods is made on basis of its customs value and/or its actual amount (for combinating and specific customs duties) in compliance with the custom legislation of Ukraine.
Customs regime
Customs regimeis a sum of statutory customs guidelines. As the function of the stated purpose they determine the flow order of goods and vehicles across the customs border of Ukraine as well as the customs formalities volume.
The declarant by himself chooses a customs regime in which the goods will be allocated, according to the purpose of their transition across the customs border of Ukraine, and on the basis of the documentation for the exercising of custom inspection and clearance furnished to the customs authority (article 186, Customs Code of Ukrainean. Alternation of customs regime is allowed provided that all the proper regimes concerning the declared regime have been executed, the legislative requirements concerning the tariff and not-tariff regulation are met, relevant documentary evidence of the declared regime is provided to the custom authority for custom inspection and clearance of goods.
Customs Code of Ukraine stipulates the following customs regimes:
- import;
- export;
- transit;
- temporary admission (export);
- customs warehousing;
- reimport;
- reexport;
- specific customs zone;
- duty-free shop;
- processing in the customs territory of Ukraine;
- processing out of the customs territory of Ukraine;
- destruction or abolition;
- abandonment of goods to the state.
Import
Importis a customs regime under which certain goods are brought into the customs territory of Ukraine for free circulation with no time restrictions for their presence in this territory; the use can be made of them without any customs restrictions. Merchandise imports are regulated by the national legislation, political and legal restraints, customs tariff, licensing system and other not-tariff measures of external economic regulation. Goods bringing into the customs territory of Ukraine under the regime of import covers:
- furnishing the documentation to the customs authorities that certify the grounds and conditions for the import to the customs territory of Ukraine;
- payment of taxes and duties which are imposed on the importation to the customs territory of Ukraine constitutionally;
- observance of statutory requirements, concerning the measures of the not-tariff regulation and other restrictions.
Documentation for get-up of goods and vehicles to the customs regime of import:
- Payment receipt for customs payments.
- Payment receipt authorizing customs terminal service payment.
- Contract, specification, additional agreement.
- Original invoice.
- Certificate of origin (СТ-1, if produced in the CIS countries, A-form etc.)
- Registration card at the customs office.
- The inquiry on declaring of currency values.
- TIR carnet.
- Consignment note CMR (AWB, railway consignment note, bill of lading).
- Country of departure export declaration.
- Permission documentation (quality certificates, sanitary-and-epidemiologic report, registration in the Ministry of health protection, State standard etc.) – if needed.
- Documentary evidence of the goods’ price and commodity code (price lists, catalogues, specification, preceding signing of goods’ cost, commodity codes etc.)
- Payment order for the bill of health, witnessed at the Municipal State Quarantine.
- Contract for commodity declare when involving brokerage firms into customs clearance.
Export
Export - customs regime under which certain goods are brought out of the customs territory without obligation for their import into this territory. Use can be made of them without any customs restrictions. Releasing the goods in the export customs regime they must be brought out of the customs territory in the same condition as they were on the customs declaration date, except the condition change due to natural wear-and-tear and loss under normal conditions of transportation and storage. Exported goods are relieved from taxes (except export duties and excises) or the amount of paid taxis is repayable in accordance with tax legislation. Goods bringing out of the customs territory of Ukraine under the regime of export covers:
- furnishing the documentation to the customs authorities, who certify the grounds and conditions for the export out of the customs territory of Ukraine;
- payment of taxes and duties which are imposed on exportation;
- observance of the statutory requirements by the exporter.
Documentation for get-up of goods and vehicles to the customs regime of export:
- Payment receipt for customs payments.
- Payment receipt authorizing customs terminal service payment.
- Necessary permission documentation (quality certificates, cleaning document, ecological certificate, hemolog expert report etc.).
- Contract, specification, additional agreement.
- Original invoice.
- Certificate of origin (СТ-1, if produced in Ukraine).
- Registration card at the customs office.
- The inquiry on declaring of currency values.
- TIR carnet.
- Consignment note CMR (AWB, railway consignment note, bill of lading).
- Driving license.
- Certificate for the right of international carriage under customs security.
- Vehicle log book.
- Contract for commodity declare when involving brokerage firms into customs clearance.
Customs payments
Customs payments Customs payments are charged by the customs authorities in the established order during the customs clearance of goods and in other statutory cases. Customs payments comprise:
- customs duty;
- value-added tax;
- excise tax;
- customs fees.
Customs payments are repaid directly by the owner of the transported goods or by the organization which exercises the customs clearance on the grounds of the contract and has an appropriate license. Customs payments must be made in the settlement account of the customs authority before or while presenting the Cargo Customs Declaration.
Customs declaration
Customs declaration (or Cargo Customs Declaration - CCD) is a written application in the prescribed form, which is presented to the customs authority and contains necessary data for customs clearance and rebilling about goods and vehicles which are transported across the customs boundary of Ukraine. CCD is used while declaring vehicles and goods which are transported across the customs boundary of Ukraine by juridical or individual entities, as well as while changing the customs regime. The declaration is produced by the goods owner or an authorized person - customs broker. Customs declaration is drawn up for goods, which exceed the customs value of 100 euro, except the statutory cases.
CCD is filled in for a consignment, provided that the single customs regime is applied to all the goods of this consignment. In case when a consignment consists of commodities which have different codes and when commodities with common code have differences (country of origin, features and characteristics which influence the level of taxation etc.), such data is recorded in supplementary pages of the customs declaration.
One CDD with supplementary pages is drawn up for not more than 99 descriptions of goods.
In cases determined by the State Customs Service one CDD can be drawn up for several consignments or several CDD can be drawn in for one consignment.
Foreign-economic activity of enterprises
Foreign-economic activity of enterprisesForeign-economic activity of enterprises
The foreign-economic business entities in Ukraine are:
- individuals – Ukrainian citizens, foreign citizens and stateless individuals that have legal capacity according to the Law of Ukraine and establish domicile within Ukraine;
- legal entities, registered in Ukraine which are located within the territory of Ukraine (enterprises, organizations and associations of any kind);
- associations of legal, individual, both legal and individual entities which are non-juridical entities according to the Law of Ukraine but who are situated within its territory and are lawful to exercise economical activity according to the Civil Law;
- base units of foreign subjects’ economical activity, which are not legal entities according to the Law of Ukraine (branch, department etc.) but who are situated within its territory;
- joint ventures with Ukrainian and foreign business entities participating. These business entities are registered in Ukraine and establish domicile within its territory;
- other statutory business entities.
Ukraine, represented by its authorities, local authorities and government, represented by their external economic organizations which take part in external economic activity, as well as other countries participating in the economical activity within Ukraine, act as legal entities according to the International and Ukrainian Law.
Exercising foreign-economic activity Ukrainian and foreign business entities are guided by the following principles:
Freedom of foreign economic enterprise principle, which consists in:
- right of the subjects of foreign-economic activity for voluntary entering the foreign economic relations;
- right of the subjects of foreign-economic activity to perform it in any lawful forms according to the laws in force of Ukraine;
- liability to observe the order established by the Ukrainian Legislation while exercising the foreign-economic activity;
- exclusive property rights of subjects of foreign-economic activity for the resulting total of their foreign-economic activity.
Principle of legal equality and nondiscrimination, which consists in:
- legal equality of all subjects of foreign-economic activity regardless of their patterns of ownership, including states, while exercising the foreign-economic activity;
- prohibition of any extralegal state actions, which result in curtailment of rights and foreign-economic activity discrimination of subjects and foreign business entities by patterns of ownership, location and other features;
- inadmissibility of any subject restrictive activity except statutory.
Supremacy of law principle, which consists in:
- regulation of foreign-economic activity only by the Ukrainian Legislation;
- ban for application of subordinate acts and local government acts which by any means creates less favorable conditions comparing with the statutory for the subjects of foreign-economic activity.
Principle of subject protection within foreign-economic activity which consists in that Ukraine as a state:
- ensures equal protection of all subjects of foreign-economic activity and foreign business entities in the country’s territory according to the Law of Ukraine;
- ensures equal protection of all subjects of foreign-economic activity of Ukraine out of the country’s territory according to the standards of international law;
- ensures a defense of state interests of Ukraine both in the country’s territory and beyond its borders only according to the Law of Ukraine, the terms of the signed international treaties and the standards of international law;
Interchange equivalence principle, which consists in dumping inadmissibility while importing and exporting.
All subjects of foreign-economic activity are lawful to exercise economical activity according to the Civil Law regardless of their patterns of ownership and other features. Individuals of fixed abode in the territory of Ukraine have the stated right provided that they are registered as entrepreneurs according to the Law of Ukraine. Individuals of no fixed abode in the territory of Ukraine have the stated right provided that they are business entities according to the law of the state where they have a fixed abode or where they are citizens. Legal entities have right to exercise foreign-economic activity in conformity with their statutory documents on the date of their legal status acquisition.
Chamber of Commerce and Industry of Ukraine
In accordance with the Chamber of Commerce and Industry of Ukraine Act, the Chamber of Commerce and Industry of Ukraine is a non-state self-governed nonprofit organization, which unites legal entities and citizens of Ukraine registered as entrepreneurs as well as their associations on a voluntary basis.
The primary task of CCI is the creation of favourable conditions for domestic business, presentation and protection of interests at all levels, higher power levels included, extension of international ties assistance in the fields of economy, science and commerce, investor search and skilled preparation of investment projects, business plans etc.
The CCI of Ukraine carries out its duties independently or through the regional Chambers of Commerce and Industry, operating in the territory of the Autonomous Republic of Crimea, regions, Kyiv and Sevastopol Cities, as well as through its enterprises and other organizations united and coordinated by it.
The CCIs offer a wide range of services in the scope of foreign-economic activity and make expert examination (price examination and examination concerning the statutory commodity codification in particular). The CCIs are also authorized by the Government of Ukraine to confirm the origin of goods, to issue origin certificates, to attest force majeure circumstances, as well as trade and port customs established in Ukraine.
