Ukraine’s new Customs Code: how imports, exports and customs valuation will change

What should businesses expect following the adoption of the new version of the Customs Code? How will the rules of the game change for exporters and importers?

On 24 September, we held the webinar “The new Customs Code: from customs regimes to customs procedures. Release for free circulation and exports under the new rules”, bringing together customs regulation specialists and business representatives to discuss the practical implications of the forthcoming transformation of Ukraine’s customs system.

The discussion focused on the new structure of customs procedures, the rules governing the release of goods for free circulation and the return of previously exported goods, updated approaches to export and re-export, and changes to customs valuation and customs value controls.

Ukraine is modernising its customs system and bringing it closer into line with European Union rules. Companies engaged in international trade should therefore assess in advance how the new Customs Code may affect their import and export operations, customs valuation approaches and customs compliance procedures. 

This webinar continued PwC Ukraine series of events on the new Customs Code. At previous sessions, we examined the overall architecture of customs reform and customs representation. This time, we focused on the practical aspects of imports, exports and customs valuation, and discussed the following key topics:

The speakers analysed the transition from a system of customs regimes to three core procedures: release for free circulation, special procedures and export. Particular attention was given to the fact that re-import and re-export will no longer constitute separate regimes: returned goods will be released for free circulation with relief from import duty, while re-export will be completed using either a customs declaration or a re-export notification.

Participants discussed the conditions under which non-Union goods will acquire Ukrainian status, the mechanism for releasing goods against a guarantee, the grounds for granting returned goods relief from import duty, and the documents required to substantiate entitlement to such relief.

The speakers considered the new approach to defining an exporter and the division of functions between the customs office of export and the customs office of exit. They also outlined the rules for confirming the actual exit of goods, the pre-departure notification mechanism, and the differences between a customs declaration and a re-export notification.

The webinar examined changes in the application of the transaction value method, the rules governing royalties, licence fees and goods supplied by the buyer, as well as new authorisations for determining certain components of customs value. Particular attention was paid to the interaction between customs valuation and transfer pricing, and to the need for international groups of companies to align their customs and tax approaches.

Speakers

• Vita Miroshnychenko, Director, Head of Customs and International Trade, PwC Ukraine;

• Yuliia Khomenko, Manager, Customs and International Trade, PwC Ukraine;

• Pavlo Herasymiuk, Manager, Customs and International Trade, PwC Ukraine;

• Aniuta Polishchuk, Senior Associate, Customs and International Trade, PwC Ukraine.

In view of the forthcoming implementation of Ukraine’s new Customs Code and the continued alignment of customs legislation with EU rules, companies engaged in international trade and cross-border business should begin reviewing their import and export processes, customs valuation approaches and customs compliance procedures now. Early preparation will help minimise regulatory risks, ensure that transactions are properly documented and adapt business processes to the new customs rules.

PwC Ukraine’s Customs and International Trade team is ready to help your business prepare for these changes and forthcoming regulatory developments. We support clients in adapting their import and export processes, assessing the impact of the new requirements on customs valuation, managing risks, and developing effective and resilient international business models.