In today’s environment, energy security and environmental sustainability are of utmost importance for Ukraine. In particular, biomethane, as an environmentally friendly and renewable energy carrier, is becoming a strategic resource for the development of national economy and ensuring the country’s energy independence.
Ukraine has recently undergone an important update to its customs legislation, which creates new opportunities for biomethane producers. On 20.03.2024, the Verkhovna Rada adopted Law No. 3613-IX amending the Customs Code of Ukraine and other laws concerning customs control and clearance of certain categories of goods. The law aims to simplify biomethane export procedures while ensuring proper control and transparency of the process.
In this article, experts of the Natural Resources and Energy industry group of BDO in Ukraine have reviewed the new legal conditions for biomethane exports, their impact on the producers and the importance of this step for Ukraine in the context of current challenges.
The new law establishes clear rules for customs clearance of biomethane transported by pipeline across the customs border of Ukraine. According to the amendments, customs control and clearance of biomethane are carried out in the same way as for the natural gas. This means that the customs clearance process will be based on information about the volume of biomethane that can be replaced by the corresponding volume of natural gas or a mixture of natural gas and biomethane.
Biomethane customs clearance procedure: requirements and necessary documents
In order to clear biomethane for customs, the declarant must submit a periodic customs declaration containing information on the biomethane producer’s account number in the biomethane register. It is also necessary to submit an additional customs declaration containing information on the guarantee of biomethane origin. This will ensure transparency of the origin of the goods and their compliance with the established standards.
Export of biomethane is possible only if the producer has a certificate of compliance with the biomethane sustainability criteria and proof of biomethane sustainability. These documents confirm that the producer complies with international sustainability standards and are issued by an independent auditor under an international certification scheme. For biomethane accounting, energy units of measurement are used, based on data at the entry and exit points at the customs border of Ukraine.
Opportunities and challenges for Ukrainian biomethane producers
The adoption of the new law creates a number of new opportunities for Ukrainian biomethane producers. Simplified customs clearance procedures will allow for more efficient exports of biomethane, opening up new markets for Ukrainian companies. At the same time, it requires producers to comply with high quality and transparency standards, which increases their competitiveness in the international market.
However, the new requirements for declarations and certificates also pose certain challenges. Producers will have to ensure proper documentation and compliance with international standards, which may require additional resources and efforts.
According to BDO in Ukraine, this step is particularly important in times of war, when ensuring a stable energy supply and maintaining economic stability are becoming the country’s top priorities. The new law amending the Customs Code of Ukraine is an important step in the development of biomethane exports. It creates favorable conditions for Ukrainian producers while ensuring an appropriate level of control and transparency. Compliance with the new requirements will allow Ukrainian companies to enter the international markets more efficiently, increasing their competitiveness and contributing to the development of the biomethane industry in Ukraine.
Contact BDO in Ukraine for more information and professional support. Our experts will help you to adapt to changes and make the most of the new opportunities.
The material was prepared at the request of Liga:Zakon
