Customs Processing Regime in Ukraine: How to Obtain Authorization and Optimize Production
The customs processing regime within the customs territory is a vital tool for fostering production development and integrating Ukrainian businesses into global supply chains. This regime allows foreign goods to be imported into Ukraine without paying customs duties (or with conditional accrual) for processing and subsequent export of finished products. Authorization for processing is the basis for placing goods under the customs processing regime within the territory.
Conditions for Obtaining Authorization
To obtain authorization, a company must meet several mandatory conditions:
Proper Document Storage and Record Keeping:
The company must ensure proper documentation and maintain records per the Customs Code of Ukraine. This emphasizes the importance of transparency and accountability in all operations involving goods.Guaranteeing Proper Processing Operations:
This includes having appropriate facilities, conditions for accounting and storing goods, and necessary technological equipment. These measures ensure the quality and safety of the production process.
Procedure for Document Submission and Decision-Making
The decision to grant authorization is made by the customs authority based on the company’s application or customs declaration. Along with these documents, the company must submit accompanying materials, including:
Foreign trade contracts outlining the processing of goods.
Technological schemes or a description of the processing process.
This requirement is critical as it must detail all stages of goods transformation, output volumes, specific work scopes, and deadlines. If these details are not included in the foreign trade contract, they must be provided as a separate document.
Additionally, the company must submit documents confirming compliance with storage and record-keeping requirements. Other optional documents, such as expert opinions, standards, or technical specifications, may also be included.
Customs Payments and Goods Identification
A crucial aspect of the customs processing regime is paying customs duties for goods designated by the Cabinet of Ministers of Ukraine. Identification measures are also in place to ensure proper control and prevent unauthorized use of goods under the processing regime. These measures include:
Seals, Stamps, and Holographic Marks: Applied to goods or vehicles.
Marking: Application of numerical, alphabetical, or other markings, identification signs, or stamps.
Documentary Recording: Sampling, descriptions, drawings, photographs, and accompanying documentation.
Additionally, identification can involve applying special seals by authorized companies, including those with authorization for simplifications, such as using special seals under the Convention on a Common Transit Procedure.
Conclusion
The customs processing regime within the customs territory offers significant opportunities for Ukrainian businesses, promoting production growth and enhancing competitiveness. However, its successful application requires a clear understanding and strict compliance with all legal requirements, including adherence to established criteria, proper documentation preparation, payment of customs duties, and goods identification.
PENTADA GROUP LLC offers a wide range of services to help you navigate the path to obtaining authorizations and maximizing the benefits of this regime.