PENTADA GROUP: participation in the annual meeting of the Kyiv CCI members with diplomatic and trade representatives of foreign embassies in Ukraine and international organisations
On 27 February 2025, the traditional annual meeting of the Kyiv Chamber of Commerce and Industry members with diplomatic and trade representatives of foreign embassies in Ukraine and international organisations, business associations and companies involved in promoting entrepreneurship took place at the premises of the Kyiv Chamber of Commerce and Industry.
The event was attended by heads of trade and economic missions: The Delegations of the European Union to Ukraine, Germany, the United Kingdom, Pakistan, Poland, India, Lithuania, Latvia, Estonia, Canada, Israel, Uzbekistan, Brazil, Austria, Spain, Egypt, Argentina, Kazakhstan, Libya, Moldova, the Netherlands, Romania, Turkey, the Czech Republic, Montenegro, Bulgaria, Norway, Vietnam, Slovenia, China, Belgium, Sweden, Finland, Australia, France, Denmark, Italy, Portugal; International organisations, business associations and firms engaged in promoting entrepreneurship: Canadian-Ukrainian Chamber of Commerce, Ukrainian-Arab Business Council, NGO African Council in Ukraine, International Cooperation Platform ‘New Markets’ ICP-33, Australian-Ukrainian Chamber of Commerce AUCC, Foreign Trade Bureau in Kyiv of the Polish Investment and Trade Agency, Polish-Ukrainian Chamber of Commerce, German-Ukrainian Chamber of Industry and Commerce, PJSC Export Credit Agency, State Enterprise ‘Office for Entrepreneurship and Export Development’.
Liliya Sobol, Director of PENTADA GROUP LLC, attended the meeting and delivered a speech on the challenges and opportunities that are important for Ukrainian business in the international arena. She spoke about obtaining the status of an authorised economic operator (AEO). In particular, as an institution of international trade, the Authorised Economic Operator was established to simplify customs procedures and increase security in the movement of goods across borders. The practice of its application has more than 15 years of history in European countries, however, in Ukraine, after coming into force in 2019, this process intensified only in 2021, with only one company obtaining AEO status. Then there was a 2-year lull, and only from the end of 2023 to February 25, 80 Ukrainian companies received this status, including 60% of manufacturers – exporters, 20% of wholesale trade, and about 14% of logistics companies.
She also noted that Ukrainian enterprises are sceptical and distrustful of the efficiency of the procedure for obtaining AEO status. First of all, because
- the procedure is complex and lengthy, and it requires significant investment in the internal processes of the enterprise
- staff needs to be trained, the control system needs to be improved, and various requirements and criteria need to be met
- and finally, businesses do not believe that the benefits of AEO status compensate for the costs of obtaining it.
But, as they say, ‘everything that is complicated is actually very simple’, so here, too, the main reason is lack of awareness. In a nutshell, AEO status means simplified customs procedures, fewer inspections, increased trust from customs authorities, and reduced costs.
Obtaining the status is only 1/3 of the battle, the main thing is to keep it, along with the trust of customs, because with the AEO status comes greater responsibility, as now it is the companies that are responsible for mistakes in customs clearance, and business must work more efficiently in the new environment.
The participation of PENTADA GROUP in this important event was an important step towards improving the business environment in Ukraine, which helps to establish constructive ties between Ukrainian and international businesses. The joint efforts of the meeting participants, including both government and private sector representatives, will contribute to the further development of businesses and economic growth in Ukraine.