Import and export quotas in 2023
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Each country has its own peculiarities for carrying out foreign economic activities. In some countries FEA is allowed only to companies that have obtained special permits. In Ukraine all have the same rights to carry out foreign economic activity, but the state has established certain restrictions, among which there are licensing and quotas for certain groups of goods. This means that the movement of goods across the customs border is possible after obtaining a license for such actions.
On December 29, 2021 the Cabinet of Ministers of Ukraine adopted the Resolution No.1424 “On approval of the list of goods, export and import of which are subject to licensing and quotas for the year 2022”.
There are 2 mechanisms:
- The first is to obtain an Import or Export License with no limit on the quantity of goods.
The procedure for obtaining these licenses is dynamically changing in Ukraine, therefore one should check the specific actions to be taken in order to obtain a license at the desired moment. Licensing of goods export is carried out in automatic (for goods for which there are no established quotas) and in non-automatic mode (for goods for which export quotas are established). To obtain a license, the following documents are required:
- A letter of application for an Export License with a guarantee of payment of the state fee for its issuance;
- An application for an Export License;
- A copy of the foreign trade agreement (contract), with all attachments and specifications;
- Expert conclusion (original) with determination of country of origin and goods code according to Ukrainian Classification of Foreign Economic activity, which is issued by Ukrainian Chamber of Commerce or regional Chamber of Commerce and Industry;
- Other documents, at the discretion of the applicant.
Currently (for the period of martial law) there is no state fee for issuing a license. If an automatic licensing regime is introduced, the term for issuing a license shall not exceed 10 business days from the date of receipt of the application and other necessary documents that meet the established requirements.
- The second is export and import quotas.
Under such conditions of implementation of foreign economic activity, the legislator gives an opportunity to export a certain quantity of goods per year. Therefore, the export of goods subject to quotas should be negotiated at the beginning of the year - so there is a greater opportunity to fall within certain quotas.
Quotas and licenses for export of goods during the war in Ukraine
On February 24 2022 Russia started a full-fledged act of war against Ukraine, which clearly had a negative impact on the economy of the state, and in turn led to a number of changes in the specified Resolution. New goods, the export of which requires an additional license or vice versa, do not need a license, are constantly being added.
To avoid hunger in the state now it is forbidden to export rye, oats, buckwheat and salt from Ukraine. The volume of quota for these goods is set at 0 tons. It is also forbidden to export phosphorus and potash fertilizers. However, a quota of 210 thousand tons of nitrogen fertilizers has been set.
In addition, the same Resolution establishes a list of goods, the export of which is subject to licensing without any quotas. That is, it is necessary to obtain a license in any case, but the client is not limited in the volume of export. Such goods include only anthracites (2701 11 00 00) as of the date of adoption of the Resolution. So far this list still includes wheat and a mixture of wheat and rye, millet, sugar, meat of chickens and cattle, edible meat offal, eggs.
It should also be noted that since the beginning of a full-scale war in Ukraine, the said Resolution has already been amended seven times, and most likely these changes will be made in the future, due to the state of the economy in Ukraine. Therefore, before carrying out operations in foreign economic activity it is strongly recommended to check the current version of the Resolution.
As for the import of goods, the quotas are set only on the import of certain types of goods from Macedonia.
Our specialists are constantly monitoring the work of customs, the Ukrainian state authorities, which allows us to respond on time to any changes, and provide the import support services in Ukraine.
If you want to organize imports of products into Ukraine – don’t hesitate to contact us.