News (#06 June 2019)


Ukrainian Parliament approved introduction of common transit with EU countries

The Verkhovna Rada upheld Draft Law No. 9532 On Common Transit Treatment in its first reading.

The Ministry of Finance believes that the adoption of the Draft will make it possible:

— to implement European practices of customs clearance of transit cargo and to ensure payment of customs duties;

— to reduce the time spent on transit cargo clearance, to expand the functionality of the risk analysis system;

— to improve the quality of services and competitiveness of carriers;

— to liberalize financial guarantees market and to enable guarantors to enter European markets;

— to simplify transit clearance for those companies that comply with Ukrainian legislation.


Protection of rights of payment cards users to be stepped up

The National Bank intends to step up the protection of rights of payment card users. Pursuant to the relevant Draft Resolution of the Board, it is proposed to establish the following additional requirements in relation to cases when a client appeals against fund transfers not carried out by him/her:

— upon receipt of the corresponding notification from the user, the issuing bank should restore his/her account balance to the state before such transfer but not later than the next business day (except where the bank has grounds to consider the actions of the user to be illegal, which it reports to law-enforcement authorities);

— the user shall bear all the losses related to appealed transfers if the bank proves that the actions or inactions of the user resulted in the loss, illegal use of a PIN code or any other information making a payment transactions possible;

— the issuing bank shall have the right not to return funds in the amount of 20 tax-free minimum incomes (currently about UAH  350) to the user’s account if the appealed transfer has been carried out using a lost/stolen or illegally used payment card and/or its details and if the user has informed the bank about its loss/theft or illegal use of details only after such a transfer has been carried out.

Moreover, the regulator plans to update the procedure for the issue of electronic payment means and transactions involving those pursuant to international payment settlement practices.


Government submitted Draft Law On the Improvement of the Procedure on Licensing of Economic Activities

The Draft Law On Amendments to Certain Legislative Acts of Ukraine on Improvement of the Procedure on Licensing of Economic Activities No. 10309 was registered in Parliament on 17 May.

The document is intended to improve the current legislative environment with the aim of harmonization of public relations in the field of licensing of certain types of economic activity by:

— defining the concept of “material and technical facilities”;

— establishing the obligation of the central executive body implementing the state policy in the field of Treasury Services provision in relation to budget funds to grant licensing authorities access to information on the payment of fees for the issue of licenses by licensees;

— introduction of a new sanction for violations in the field of licensing – suspension of license in full or in part;

— introduction of procedure for renewal of license if it has been suspended by the licensing body;

— introduction of initiation of the appellate procedure by the licensee in relation to the decision of the licensing authority regarding suspension of license;

— settlement of issues related to re-submission of an application for obtaining a license, provided that only those confirmatory documents, which became the reason for adoption of the decision not to consider the application, and given that the previously filed documents of the license file, attached to the application for obtaining the license, are still relevant when they are re-submitted;

— including new grounds for the license’s cancellation (in the event of recognition of the licensee as invalid, partially incapacitated, missing, deceased; availability of the act on the absence of corrective actions taken by the licensee during the period of suspension and related to license violations that became the reason for its suspension);

— exclusion of the grounds for the license’s cancellation in the event of non-payment for the issuance of the license by the licensee;

— clarification of the list of information on licensing to be entered to the United State Register of Legal Entities, Individual Entrepreneurs and Public Organizations;

— establishment of new grounds for non-consideration of the application for obtaining a license — the availability of information on the exercise of control over an economic entity as defined in Article 1 of the Law of Ukraine On Protection of Economic Competition by residents of states conducting armed aggression against Ukraine as defined in Article 1 of the Law of Ukraine On Defense of Ukraine;

— mandatory inclusion of provisions on the availability of locations for conducting economic activities by people with limited access to licensing terms;

— unification of the amount of fines for violating legislation in the field of licensing;

— improvement of the procedure for appellate initiation against the actions of licensing bodies in the Expert Board of Appeal.

The Ukrainian Journal of Business Law

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