Duties and Tax Exemption

The Customs Code of Ukraine regulates imports and exports. This Code was adopted in March 2012 and most recently amended in March 2022. The Customs Code outlines procedures for import, exports, re-export, temporary entry and transit of goods for customs clearance, duty, excise and other customs tariffs payments, activity of customs brokers and customs bonded warehouses, etc. In addition to the Customs Code, current Ukrainian legislation on customs includes two Supplements to the Law - On Customs Duty Rates of Ukraine № 584-VII where duty rates are set forth. The main law governing import and export VAT and refund of export VAT is the Tax Code of Ukraine of December 2, 2010, Section V.

According to Ukrainian legislation, both individuals and legal entities can act as importers of record in connection with customs clearance of goods imported to Ukraine, though a business entity must be accredited with its local customs office. The procedure and list of required documents are set forth in the Procedure for Registration of Entities that Carry Out Operations with Goods. State Tax Service of Ukraine.

Prohibited to import into Ukraine:

• drugs, narcotic and psychotropic substances;
• cold, firearms, gas weapons without the permission of the Ministry of Internal Affairs;
• explosive and toxic substances;
• printed and video materials promoting violence, racism and war, pornography;
• food products without a certificate;
• unidentified animals;
• cultural values declared wanted.

Also prohibited: Import into the territory of Ukraine of live pathogens (including bacteria, viruses, fungi, rickettsia, mycoplasma, other pathogenic microbes) and pathological material containing pathogens of animal diseases, with the exception of importation into the territory of Ukraine for the purpose of scientific research or for other permitted purposes.

It is prohibited to import into the territory of Ukraine veterinary drugs, feed additives, premixes and finished feeds that are not registered in accordance with the Law of Ukraine "On Veterinary Medicine."

Import to Ukraine of electric fishing systems (electric guns), monofilament (fishing line) nets, hunting traps, and other means of obtaining objects of the animal world is prohibited by law.

Customs duty must be paid by the importer upon import of the goods into Ukraine. The rates are established by the Customs Tariff. The more relevant info can be found:

8, Lvivska Ploscha, Kyiv 04655 Ukraine
Tel: +38 (044) 2726255, +38 (044) 2722956, +380 44 272-51-59
Fax: +380 44 272-08-41
E-mail: Kabmin_doc@sfs.gov.ua

HQ to insert link to the government contact list. Create the contact list by completing the 'Annex 4.1: Government Contact List' template. Once saved in the appropriate annex section, copy and paste the link here. If the contact list already exists, update it with the contact details required and paste the link directly into this section.

Ensure the file has the correct Customs Authority Focal Point information. Ensure individual focal points for each entry point are identified where possible. 

Emergency Response

[Note: This section contains information that is related and applicable to ‘crisis’ times. These instruments can be applied when an emergency is officially declared by the Government.  When this occurs, there is usually a streamlined process to import goods duty and tax-free.]

On February 24, 2022, in accordance with the Law of Ukraine "On the Legal Regime of Martial Law," martial law was introduced in Ukraine.

On March 07, 2022, the Cabinet of Ministers of Ukraine approved Resolution No. 224 "On Approval of the List of Categories of Goods Recognized as Humanitarian Aid without the Procedure for Recognizing Such Goods as Humanitarian Aid in Each Case for the Period of Martial Law and Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine on Humanitarian Aid" (hereinafter - the list).

Paragraph 1 of the Resolution of the Cabinet of Ministers of Ukraine dated March 01, 2022 No. 174 "Some Issues of Humanitarian Aid Passing through the Customs Border of Ukraine under Martial Law" established that during the period of martial law, humanitarian aid (including humanitarian aid goods such as

• special personal protective equipment (helmets made in accordance with military standards or technical specifications, or their equivalents and components specially designed for them (that is, sub-helmets, shock absorbers), classified in the commodity subcategory according to UKTZED 6506 10 80 00; bulletproof vests classified in the commodity subcategory according to UKTZED 6211 43 90 00), made in accordance with military standards, in particular NATO standards, or military conditions for the needs of law enforcement agencies, the Armed Forces and other military formations formed in accordance with the laws of Ukraine, other entities engaged in the fight against terrorism in accordance with the law;
• threads for the manufacture of body armor, classified in commodity subcategories according to UKTZED 5402 11 00 00 and 5407 10 00 00;
• fabrics (materials) for the manufacture of body armor, classified in commodity subcategories according to UKTZYeD3920 10 89 90. 3921 90 60 00. 5603 14 10 00. 6914 90 00 00)
• unmanned aerial vehicles and their parts for civil purposes and dual use.

from donors (within the meaning of the Law of Ukraine "On Humanitarian Assistance") is carried out at the place of crossing the customs border of Ukraine by submitting in paper or electronic form a declaration filled out by the person transporting the relevant goods in the form according to Appendix 1 without applying measures of non-tariff regulation of foreign economic activity.

Goods are recognized as humanitarian aid on a declarative basis without the appropriate decision of specially authorized state bodies on humanitarian assistance.

In the following table, state which of the following agreements and conventions apply to the country and if there are any other existing ones.

Exemption Regular Regime (Non-Emergency Response): 

Law of Ukraine "On Humanitarian Assistance" defines legal, institutional, and social principles of receiving, documentation, provision, distribution, and control over the proper use of humanitarian aid.

According to the third paragraph of Article 1 of the Law, humanitarian assistance – is the target address of free aid in cash or in kind or in the form of non-repayable financial assistance or donations or assistance in the form of works or services provided by foreign and domestic donors with humanitarian grounds for the recipients in Ukraine or abroad who need it due to social, material insecurity, difficult financial situation, state of emergency, in particular due to natural disasters, accidents, epidemics and epizootics, ecological, technological and other disasters that threaten life and health for population, or serious illness of specific individuals, as well as to prepare for armed defence of the state and its protection in case of aggression or armed conflict.

Humanitarian assistance is a kind of charity and should be sent in accordance with the circumstances, the objective requirements, the consent of the recipients and subject to the requirements of Article 3 of the Law of Ukraine "On charity and charitable organizations."

In accordance with Article 3 of the Law, the basis for the beginning of the procedure of recognition of aid as humanitarian, is the donor's written proposal for the provision.

Goods (items) imported (sent) as humanitarian aid are subject to priority-free simplified declaration to the customs authorities of Ukraine by the relevant institutions and organizations, regardless of the form of ownership, with the obligatory affixing in the shipping documents, cargo customs declarations of the stamp "Humanitarian aid. Sale is prohibited" stamped by customs officer. Institutions and organizations regardless of the form of ownership that carry out the declaration to the customs authorities of Ukraine, in case of refusal to declare goods of humanitarian aid, are deprived of the right to declare customs goods.

The cause for the implementation of humanitarian aid in Ukraine is the written consent of the recipient of humanitarian aid to receive it. The recipient of the humanitarian aid has the same rights to its use as the getter of humanitarian aid.

In accordance with paragraphs 1 and 4 of the Article 287 of the Customs Code of Ukraine, importing (sending) goods to the customs territory of Ukraine determined in accordance with the Law of Ukraine "On Humanitarian Assistance" as humanitarian aid are exempt from import duty tax. Customs clearance is carried out by the customs authorities of Ukraine without paying customs duties.

Organizations/entities/persons which can be recognized as “recipient of humanitarian aid” are listed in the Law of Ukraine dated November 8^th, 2023 No. № 3448-IX.

This Law also contains the definition of “beneficiary” of humanitarian aid - individuals and legal entities in need of assistance and to whom it is directly provided.

In addition, paragraph 197.11 of the Article 197 of the Tax Code of Ukraine established that the import into the customs territory of Ukraine things as international technical assistance provided in accordance with international agreements of Ukraine, consent to be bound by the Verkhovna Rada (Parliament) of Ukraine, as well as the humanitarian aid provided in accordance with the provisions of the Law of Ukraine "On Humanitarian Assistance" shall be exempt from taxation the value-added tax.

The recommended list of documents can be found on the official website of the Ministry of Social Policy of Ukraine (https://www.msp.gov.ua/en/).

Reporting

According to the Article 12 of the Regulation No. 953 dd September 5th, 2023:

“The recipient, except for recipients of medical humanitarian aid, by the 15th day of the month following the month in which the date of entering information on the customs clearance of humanitarian aid under the declaration is indicated, generates and submits a report in the electronic cabinet of the automated system or uploads a copy of the paper report signed by the head or person responsible for accounting, or a copy of the report in electronic form with the qualified electronic signature of the head or person responsible for accounting.

The report shall be submitted by the 15th day of each month following the reporting month, on a cumulative basis, separately for each list of goods recognized as humanitarian aid imported into the customs territory of Ukraine until its full distribution.”

Humanitarian aid goods (items) that cannot be used for their intended purpose may be returned to the donor in accordance with the procedure established by the Cabinet of Ministers of Ukraine at the expense of the donor.

Violation of legislation

Recipients of humanitarian aid who have violated the requirements of the legislation on humanitarian aid shall lose the status of recipient of humanitarian aid in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Related legislation (the list is not exhaustive and is subject to change)

Law of Ukraine "On Humanitarian Aid"

Regulation dated September 5, 2023 No. 953

Law of Ukraine “On Amendments to Certain Laws of Ukraine on Importation, Accounting, Distribution of Humanitarian Aid, Peculiarities of Taxation of Relevant Transactions and Reporting” No. 3448-IX dated November 8^th, 2023

Parliamentary website with legislation related to humanitarian aid Законодавство України (rada.gov.ua)