Law Digest (#12 December 2014)

Carrying currency across the administrative border with the Crimea free economic zone

According to the On Creation of the Crimea Free Economic Zone and Features of Economic Activity in the Temporarily Occupied Territory of Ukraine Act of Ukraine of 12 August 2014, No.1636-VII and the Resolution of the National Bank of Ukraine On Special Rules of the Currency Legislation during the Temporary Regime of Occupation in the Territory of the Crimea Free Economic Zone of 3 November 2014, No.699, new rules have been implemented as to the carrying of currency cash across the administrative border of the Crimea free economic zone. It is forbidden to carry Russian rubles across the administrative border, except for individuals in the amounts not exceeding the equivalent of UAH 10,000, provided the money is reported to a customs officer. Carrying currencies of other categories is subject to the general rules set by the NBU. Thus, individuals may bring to the free economic zone Crimea or take to other territories of Ukraine the cash amounts not exceeding the equivalent of EUR 10,000, without a written declaration to the customs authority. Individuals residing in other territories of Ukraine may carry cash in the amount exceeding the equivalent of EUR 10,000 subject to a written declaration to the customs authority in full and the documents confirming withdrawal of the cash from bank accounts (financial institutions), specifically for the amounts exceeding the equivalent of EUR 10,000. Individuals, who are residents of the Crimea free economic zone may: carry to other territories of Ukraine the cash amounts exceeding the equivalent of EUR 10,000 (subject to the limitations set for the currency of the invading country) upon presentation of a written declaration to the customs authority in full; carry from other territories of Ukraine the cash amounts exceeding the equivalent of EUR 10,000 (subject to the limitations set for the currency of the invading country) if the cash amount that is taken out of the country does not exceed the amount of cash declared in writing by that person when coming to Ukraine. In that case, the cash may be carried out of the country if it is declared in writing to the customs authority in full.

 

Stabilization of foreign exchange market in Ukraine

On 30 October 2014 the NBU issued its Resolution No.685 to amend the NBU Resolution of 29 August 2014, No.540, under which the National Bank lifted the ban on the following transactions: settlements under import transactions without bringing goods to the territory of Ukraine; payments under import contracts, where products have been imported to the territory of Ukraine and cleared by the customs under the import customs declarations older than 180 days. In addition, it amended NBU Resolution of  the NBU of 30 December 2003, No.597 in respect of the cost of services (works, intellectual property rights), for payment of which it is required to provide a price examination by the State Information and Analytical Centre for Monitoring of External Commodity Markets. The relevant amount was reduced from EUR 100,000 to EUR 50,000.

 

Control of goods transported across administrative border of Crimea free economic zone

On 28 October 2014 the State Fiscal Service of Ukraine provided its explanations as to the veterinary and phyto-sanitary control of goods that are transported across the administrative border of the Crimea free economic zone. Starting from 13 Octo- ber 2014, it is forbidden to import from the Crimea free economic zone all goods that are subject to veterinary and sanitary control. For the goods that are transported from the territory of Ukraine to the Crimea free economic zone, the appropriate veterinary and sanitary control should be confirmed by the veterinary certificate of forms F-1 or F-2. The phyto-sanitary control of the goods that are transported across the administrative border does not need to be confirmed by stamps on the bills of lading. A bill of health is a document that confirms the phyto-sanitary control of the goods that are transported from the territory of Ukraine to the territory of the Crimea free economic zone. The phyto-sanitary procedures for goods that are transported from the territory of the Crimea free economic zone to other territories of Ukraine are carried out at the customs offices at the destination of goods. A bill of health is issued based on phyto-sanitary control.

 

Promoting debt restructuring

The Resolution of the National Bank of Ukraine On Changes to the Resolution of the NBU of 29 August 2014, No.540 of 12 November 2014, No.722 reads as follows:

1) Sub-clause 1, Clause 1 shall be supplemented with the new paragraphs: ”Requirements of this sub-clause shall not apply to early repayments of credits, loans that have been taken by authorized banks under terms of a subordinated debt, on condition that the early repayment of the subordinated debt is made for the purpose of increasing the authorized capital of the borrowing bank and subject to an appropriate permit from the NBU; at the cost of the funds that are attracted by a resident borrower under other credit agreement (loan agreement) with a non-resident, if such agreement provides for a later fulfillment of the borrower’s obligations (in full or in part) compared with the terms of the previous credit agreement (loan agreement)”;

2) the Resolution shall be supplemented with a new clause following clause 2: ”3. For the term of this Resolution, the penalties for violation of Clause 15, Section I of the NBU’s Regulation On the Procedure and Terms of the Foreign Exchange Trade of 10 August 2005, No.281 (as amended) shall not apply to the authorized banks. The Resolution has come into effect.

 

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