Rules for export-import transactions approved

The Verkhovna Rada adopted yesterday a revised version of the Customs Code, taking into account amendments by the president and deputies. The document contains rules allowing entrepreneurs to assert their rights in disputes with the State Customs Service, but at the same time restores the previous scheme for importing cars with the help of non-residents. The period for their temporary import of vehicles will be increased to one year, and yachts can be imported tax-free for three years. These customs rules will come into effect in May.

Yesterday, 264 people's deputies voted for a new edition of the Customs Code, finalized in the parliamentary committee on finance, banking, tax and customs policy after the president vetoed the document at the end of 2011. Viktor Yanukovych was then indignant that the norms of the code violate the rights of business entities and international law, complicate customs procedures, and also create risks of tax evasion (Kommersant reported this on January 16). According to the head of the committee, Vitaly Khomutynnik (Party of Regions), the new version of the document takes into account all the president’s comments, edits from deputies (148 introduced, 133 taken into account) and agreed with the government.

The adopted document partially limits the rights of customs authorities to independently determine the customs value and adjust it. The official’s refusal to register goods at the value declared by the declarant and the decisions taken to revise the declared information will have to have clear justifications. At the request of the subject of foreign trade activities, the customs officer will be able to release the goods for free circulation with payment of taxes at the value declared in the declaration. If the controlling body is unable to provide evidence of its correctness, the value indicated by the declarant is automatically considered correct. At the same time, the deputies ignored a number of comments from the head of state and risked leaving some norms in the form in which the president applied his veto power to them.

Mr. Yanukovych pointed to the obligation of the subject to declare the customs value determined or adjusted as a result of “consultations” with the State Customs Service, and not during the “control” proposed in the first edition of the new code. But the parliamentarians decided to leave control rights to customs officers. In addition, the code now contains a vaguely worded provision stating that failure by an enterprise to provide all the information it has may be grounds for revocation of a preliminary decision on the issue of classification or country of origin of a product. “Any business wants to see a clear and final rule that will not allow articles to be interpreted at the discretion of the official,” says German Taslitsky, director of the law firm “Human Rights Ukraine” (works with brokers to resolve customs disputes). Board member of the Association of Customs Brokers Boris Magarychev adds that such vague rules expand the powers of customs officers.

The deputies also did not exclude the provision for the creation of a duty-free shop in Kyiv, where members of diplomatic missions of foreign states and members of their families can be served. But at the same time, they agreed with the president’s proposal to delimit the monetary threshold for duty-free import of goods by individuals - up to 1 thousand euros for air travel, and for other types of transport the limit will be 500 euros (for postal shipments - 300 euros). Currently, this threshold for all types of citizen cargo is 200 euros.

In addition, the activities of customs brokers have been simplified. The need to provide a financial insurance guarantee in the amount of at least 300 thousand euros is eliminated, and the customs clearance agent working with him will not need to confirm his qualifications at the State Customs Service and the level of special knowledge. The code now contains provisions that, according to experts, allow the return of tax-free car import schemes with the help of non-residents. The period for temporary import has been increased from 183 days proposed in the first edition of the code to one year. Deputies introduced a similar rule for yachts - for a period of up to three years.

As noted by the director of the customs control and clearance department of the State Customs Service, Sergei Semka, such deadlines still apply if a non-resident issues a temporary registration of a vehicle (without registration - up to two months). In world practice, a year is used for importing cars, but only in Ukraine this norm is used as a scheme. “A non-resident imports a car, transfers it by power of attorney to a resident, and since the traffic police has no right to demand a power of attorney since August 2011, you can freely use the car for a year,” explains Oleg Nazarenko, general director of the All-Ukrainian Association of Automobile Importers and Dealers.

According to him, Ukrainians will have the opportunity to choose between buying a Lanos for $10 thousand within the country and a Mercedes for 1 thousand euros abroad, “even with a service life of 5-8 years.” Mr. Nazarenko expects that sales of vehicles in the lower price segment will suffer from this scheme. Mr. Semka argues that such schemes are impossible, since a non-resident does not have the right to transfer property to third parties, but at the same time admits that such facts are regularly revealed by customs together with the traffic police.

Deputies rejected the head of state's proposal to postpone the entry into force of the Customs Code to 2013 - this will happen on May 1. The State Customs Service assures that since they expected the new rules to come into force on January 1, 2012, the necessary orders have already been prepared and will now be submitted to the Ministry of Finance. “The business is ready, but there are doubts that customs is ready. Yes, some of the acts have already been prepared, but, for example, since 2010, the mechanism for creating licensed warehouses has not been adopted. As part of deregulation, licenses for opening warehouses were canceled, but a new procedure was not prescribed.” , agrees Boris Magarychev.

Natalya Nepryakhina

Newspaper "Kommersant Ukraine" No. 41 dated March 14, 2012, p. 1

Authors:

Natalya Nepryakhina

The Code has been updated to a new edition