Import of equipment to Ukraine: how to organize the import of consignments of equipment?
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You are a Ukrainian manufacturer who is planning to start a business in Ukraine, to upgrade an existing one or, for example, to open new production lines. Like many other producers, at this point you may lack necessary equipment in Ukraine and need to order it abroad. For example, to import into Ukraine a boiler room, dryers, equipment for agriculture and other activities.
So, there is an obvious question: How to properly import this equipment into Ukraine, without problems, penalties, and with the most optimized taxes?
What if the import of equipment will be in parts, as well as in stages? And if its production requires time, but you are required to make all payments and all the arrangements at once?
Today, we will provide legal advice on how to organize the import of equipment for Ukraine.
Please remember this is not a one-size fits-all approach – every case requires analysis and its algorithm of actions, depending on the type of equipment, the conditions of the contract of its purchase, your business and the rules at the customs office at the time of importation. However, you may find useful tips for solving your own problems.
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Import of the foreign equipment into Ukraine in parts
There are several options for importing equipment under the equipment code in Ukraine. The simplest option is when your equipment is simple, small, produced or delivered to Ukraine within the time limits set by the National Bank for the return of currency values and transported by one truck. Then the entrepreneur simply submits a customs declaration in the usual manner, without additional licenses, permits and conclusions.
However, when the equipment is made on the request of the Ukrainian manufacturer and requires time for this, and then sent to Ukraine in parts, there are many nuances about which the entrepreneur should know in advance.
Firstly, in the case of a long manufacturing process of the equipment you need to take care of the extension of the FX settlement period. Please read more about this here.
Secondly, when the equipment is transported to Ukraine by more than one truck, the entrepreneur has three options for customs clearance.
The first option: Clearance by parts.
It is the longest and somewhat irrational procedure, but it occurs in practice. This means that the entrepreneur has to clear everything all parts that arrive under the codes of the individual parts.
The problem is that usually the equipment in Ukraine is subject to a zero rate of duty, while the parts are subject to 10% duty on average. And in addition, the more codes specified in the declaration – the greater the possibility to make a mistake in the classification and create unnecessary problems.
In such a situation, you will not be able to declare all the codes of the equipment, because the customs i can not check the following supplies to form the equipment, as at the time of the declaration you present only separate parts.
The second option: Holding one truck in the customs area.
Or you may unload it at the warehouse and submit for declaration all parts of the equipment upon their arrival in Ukraine. Then the entrepreneur submits for declaration the equipment under the equipment code in disassembled condition and declares that all disassembled parts are integral parts of the equipment and were disassembled for the purpose of transportation.
However, this option is not always possible, since the entrepreneur is limited in the period of storage of goods in a temporary storage warehouse of three months with the possibility of extending the period for another 30 days. That is, this option is possible if you are sure about assembling all the parts of the equipment in Ukraine within four months.
The third option: Getting permission from the customs to import a complete object.
If the delivery time of all the component parts is more than 4 months, or there is no possibility for temporary storage of the components in the warehouse, if you want to clear the goods exactly under the code of the equipment, then there is a third option. This is a permit for the import of a complete object.
It will allow each subsequent shipment of equipment to customs clearance immediately from the wheels, without waiting for the rest of the equipment under the code. However, you should be prepared for this in advance, because customs understands the Customs Code so that the authorization for a complete object must be made before crossing the state border of Ukraine for the first batch of equipment.
The process of obtaining a permit is not simple, because it is necessary to show all the components of the equipment to be imported at the customs, as well as their net weight and price in terms of spare parts, and provide all the contracts and drawings.
These permits are widespread among large manufacturers, whose production of equipment requires a significant amount of time and obtaining both the conclusions on the extension of the deadline calculation, and permits for the import of complete objects.
Please note! In our practice there was a case of obtaining a permit for import of a complete object after crossing the border with the first component parts. This issue was resolved by the court. In our Client’s situation, the first parts of the custom-made boiler plant worth 1 million Euro were already in Ukraine. And the possibility to clear the boiler room under the code of the boiler room allowed the Client to save several thousand euros.
However, there isn’t much chance for it, so it is better to act in advance, pre-organizing the entire process of import and customs clearance of equipment in Ukraine.
Our company provides comprehensive assistance in organizing import and export of goods to Ukraine. We assist from the moment of conclusion of contracts for purchase of foreign goods and up to successful customs clearance in Ukraine.
If you want to avoid customs overpayments and risks at customs, don’t hesitate to contact us!