Policy Progress: The State Fiscal Service of Ukraine Supported Chamber Proposals on Solving Issues with “Grey” Import

The State Fiscal Service of Ukraine (SFS) sent a Letter to the Ministry of Finance of Ukraine along with Draft Law “On Amendments to the Customs Code of Ukraine” with incorporated Chamber proposals regarding solving problems with “grey” import, namely tax free import to Ukraine of consumer goods carried by citizens for sale in Ukraine using the exemption, provided for the goods with the value below EUR 500.

These amendments establish special conditions for preferential (tax free) import into Ukraine of goods with the value below EUR 500 by citizens. These special conditions include (1) entry once per 7 days and (2) absence of the citizen in Ukraine at least 48 hours before such entry. These special conditions do not apply to citizens travelling by air.

The Chamber highly values efficient cooperation with the SFS which resulted in the above mentioned initiative. Adoption of these amendments by the Verkhovna Rada of Ukraine will be the first step in fighting with “grey” import of goods in Ukraine at the border.

We would like to thank Ivan Shynkarenko, Head of the Chamber Working Group on Reforming Liability for Customs Offences, WTS Consulting; Oleksiy Korop, WTS Consulting; Igor Dankov, Chamber Customs Committee Co-Chair, EY; Anton Melnyk, Head of the Chamber Working Group on External Trade, EY and other Chamber Customs Committee Members who were actively involved in this advocacy process.

The Chamber will continue working thereon to make sure that the problem is resolved in a proper manner.