News (#10 October 2018)

Law digest

Customs procedures for business simplified

A business will be able to reduce time expenditures on the registration of goods through a single provision of a unified set of information through a Уsingle windowФ at Customs.

The corresponding Law On Amendments to the Customs Code of Ukraine and Some
other Laws of Ukraine Regarding the Introduction of the Single Window Mechanism and Optimization of the Implementation of Control Procedures for the Movement of Goods Across the Customs Border of Ukraine
Ф (Draft No.7010) was adopted taking into account amendments introduced by the President of Ukraine.

The law improves conditions for conducting foreign trade activities, shortens time for export-import transactions and improves investment attractiveness of Ukraine.

In particular, amendments introduced to the Customs Code are related to the definition of the Уsingle windowФ mechanism and the procedure of its implementation.

Moreover, the project provides for removal of unreasonable obstacles related to export of Ukrainian goods, as well as ensures a reduction in the number of controlling bodies at the border due to:

Ч assignment of responsibilities to verify authorization documents, which are currently verified by the State Environmental Inspection officials, to customsТ officials;

Ч assignment of responsibilities to check the level of radioactive contamination of vehicles and goods imported into the customs territory of Ukraine, which are currently carried out by the State Environmental Inspection, to officials of the State Border Service;

Ч cancellation of the sanitary and epidemiological control of goods transported across the customs border, which is currently actually narrowed down to obtaining a УstatementФ.

Currency exchange regulations amended

The National Bank of Ukraine †has updated the statutory provisions regarding
exercising currency exchange regulation and conducting inspections on compliance with requirements of the currency legislation of Ukraine by banks, other financial institutions, and the national postal operator.

The amendments establish application of sanctions on the basis of inspection reports without drawing up a protocol on violation of the currency legislation, as provided for by the Decree of the Cabinet of Ministers and NBU Resolution No. 49. From now on, inspections will be conducted by authorized NBU employees before drawing up inspection reports regarding materials received from government agencies, which may evidence violation of currency legislation requirements.

The National Bank has the right to adopt a resolution on holding liable for violation of currency legislation and to apply measures of influence to a bank on the basis of primary documents (electronic documents, copies thereof) that were received by authorized employees during the inspection and that evidence violations of currency legislation.

The amendments were approved by NBU Resolution No.97 of 6 September, which entered into force on 8 September.

Parliament voted to abolish moratorium on round timber export

The Verkhovna Rada has adopted Law No. 5495, which provides for increased liability for illegal export of timber and wood products from Ukraine. The Law provides for increase in annual timber harvesting from 20 million cubic meters to 25 million cubic meters.

Members of Parliament excluded from the law the statutory provision, which provided for a ban imposing for a period of 8 years for round timber export. The law will come into force on 1 January 2019.

A reminder that the abolition of the moratorium on round timber export along with implementation of a number of reforms will contribute to Ukraine receiving a new tranche of macro-financial assistance from the EU.

The moratorium on round timber export has been in force in Ukraine since 2015.
In due time, because of the ban on its cancellation, the European Commission refused to provide Ukraine a tranche in the amount of EUR 600 million.

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