Ukraine signed Singapore Convention
On 7 August 2019 the United Nations Convention on International Settlement Agreements Resulting from Mediation was signed in Singapore. Ukraine is among the signatory countries.
The Convention is intended to make possible and facilitate the enforcement of decisions reached by parties in the assistance of mediation in international commercial disputes. The Convention provides for the introduction of instruments for the recognition and enforcement of decisions resulting from mediation, akin to those provided for in the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
The Convention will apply to international treaties resulting from mediation in commercial disputes between two companies from different states who are parties to the Convention. The Convention provides a uniform framework for recognition of such agreements in a member state and makes it possible to apply to a court for the recognition of such an agreement and its enforcement in another jurisdiction.
The aim of the Singapore Convention is to become an instrument for promoting international trade and promoting mediation as an alternative and effective method of resolving trade disputes.
NBU lifts restrictions on purchase of foreign currency on credit
The National Bank of Ukraine has lifted restrictions on the purchase of foreign currency on loans for business.
This concession will enable companies to more effectively manage liquidity and purchase the necessary amounts of currency to fulfill their own obligations at a time convenient for them.
In addition, foreign exchange supervision over compliance by business with deadlines for settlements on foreign economic operations has been improved. Banks are required to complete supervision of export operations within five business days from receipt of information from the National Bank about a change in the servicing bank in the client’s customs declaration.
It is noted that this will avoid double control of client operations. The NBU also clarified the procedure for supervision of import operations in the event of a change in the servicing bank in the customs declaration.
The next currency concession was approved by the NBU Board Resolution No. 104 of 6 August 2019 On Amending Certain Normative Legal Acts of the National Bank of Ukraine which came into force on 8 August.
Law on organic products now in force in Ukraine
The Law On the Basic Principles and Requirements for Organic Production, Circulation and Labeling of Organic Products came into force on 2 August. The Law introduces six key novelties that are important for business operations and control and registration of organic production operators and accreditation of certification bodies are introduced.
This means that companies intending to work on the Ukrainian market (producers or processors) must be certified in accordance with Ukrainian standards. At the same time, companies that are importers and are already certified abroad should involve these certification bodies in registration in the Ukrainian register.
In addition, appropriate registers (operators, certification bodies, organic seeds and planting material) are being created, to which the Ministry of Agrarian Policy and Food of Ukraine will provide free, round-the-clock access.
The Law also provides that organic producers will undergo annual certification, which is not currently applied.
It is reported that the owners of organic companies will coordinate the labeling of organic products with the certification body (they will be determined by the Ministry of Agrarian Policy and Food of Ukraine), and those products that don’t meet the requirements of legislation on organic production and labeling will be seized in line with the results of the inspection by the State Service of Ukraine for Food Safety and Consumer Protection.
In addition, the process of this production or circulation, and not the organic product itself, will be certified.
New rules for labeling food products introduced
Starting from 6 August Ukraine will gradually change the labels of goods in stores as new rules for labeling food products begin to apply.
It should be noted that on 6 December 2018 the Ukrainian Parliament adopted in the second reading Law No. 8450 On Information for Consumers about Food Products.
The law regulates the duties of food market operators to provide information on food items. It is prohibited to use information that may mislead the consumer, especially in terms of the properties and characteristics of food items and the consequences of consuming them, as well as in terms of attributing medicinal properties to food.
Now, according to the new law, information about a food item should be accurate, reliable and understandable to the consumer and should not be misleading as to the characteristics, properties and composition of food items.