Cabinet of Ministers approves draft law on common transit mode

1/30/19

The Cabinet of Ministers has approved the draft law “On Common Transit Mode” prepared by the Ministry of Finance.

The draft law is aimed to adjust the Ukrainian customs legislation to the relevant EU regulations through the implementation of the Convention on a Common Transit Procedure and the Convention on the Simplification of Formalities in Trade in Goods.

The draft law has the below key regulations:

• Key principles of the organization and implementation of the common transit mode for goods passing the customs territory of Ukraine;

• Procedure and conditions for goods passing the customs territory of Ukraine in the common transit mode, customs formalities, application of the mechanism to guarantee due customs payments, application of special provisions simplifying the transit of goods.

“This draft law is important for Ukraine, since it allows to apply the European transit regulations, thus enabling companies to issue a single customs declaration and a single guarantee for the transfer of goods from their warehouse to the one of their partner. This will significantly speed up goods delivery and make it cheaper, which would be beneficial for all players, including exporters, forwarders and importers,” Deputy Minister of Finance Serhiy Verlanov said.

The adoption of this draft law would allow to reduce the number of customs formalities required to control the transit of goods. The Ukrainian customs would receive information about transit goods from the customs authorities of other countries prior to the crossing of the Ukrainian border and thus would be able to analyze all possible risks prior to the arrival of these goods to Ukraine. Also, this would allow to determine appropriate forms of customs control without delaying the movement of goods through the border with customs checks and other control procedures.

The draft law also stipulates amendments to the Law of Ukraine “On the Transit of Goods” related to the implementation of the common transit mode in Ukraine concerning the paperwork to be submitted for transit goods by the parties of the transit procedures.

For information

The Draft Law of Ukraine “On the Common Transit Mode” has been prepared in line with articles 76 and 84 of the Association Agreement between Ukraine and the EU and Annex XV to this Convention concerning the further participation of Ukraine in the common transit system according to the Convention on the Common Transit Procedure of May 20, 1987.

The task to prepare the draft law was set in the priority action plan of the Government of Ukraine for 2019 and in the Memorandum of Understanding between Ukraine as the Loan-Taker and the European Union as the Creditor (ratified according to the Law of Ukraine No. 2613-VIII of November 8, 2018).

You can mark the parts of text you like, which will be available at the link in the address bar of your browser

You can mark the parts of text you like, which will be available at the link in the address bar of your browser