Ucraina - The features of the application of the customs regime when moving goods across

the border
In addition to direct export and import operations of subjects of foreign trade activities with the
change of ownership from the moment of customs clearance, foreign economic activity involves
the operation of temporary import and export outside the customs territory of Ukraine of objects
of property. That is, the operations are reversed and occur without change of ownership with the
obligatory subsequent export or import of goods.
Under the temporary importation (exportation) understand the customs regime under which
goods may be imported into the customs territory of Ukraine or be exported outside the customs
territory of Ukraine with the obligatory subsequent return of these goods without any changes
besides natural wear or loss under normal transportation conditions.
Under natural wear understand the physical aging, depreciation — facilities for temporary
importation (exportation) in the process of their use. Physical deterioration is characterized by
the wear of the materials of which are created, plant and equipment — temporary import
(export), the loss of their original qualities, the gradual destruction of structures. Accordingly,
under natural loss understand the complete physical loss of the original qualities of fixed assets
— facilities for temporary importation (exportation) in the process of their use.
The application of the customs regime "Temporary import (export)" has a number of
advantages in comparison with other customs regimes, especially for operations with goods, and
property. This property is considered any floating objects belonging to subjects of foreign
economic activity and not intended for sale or exchange (transfer fee).
Thus, the use of this customs regime can significantly minimize costs for obtaining businesses
the necessary equipment. It is not only the savings due to the minimization of customs payments
(import duty on equipment is usually not less than 10 % of the customs value of the goods), but
also the effective use of financial resources through the deferral of payments received and, most
importantly, functioning equipment.
The use of the customs regime "temporary import (export)" has advantages not only for specific
entities, but for the nation as a whole. The experience of many countries shows that the optimal
organization and regulation of the regime of temporary importation of goods and items can be a
very significant channel of replenishment of a profitable part of State budget.
An example of this is the use of the system of customs taxation temporary importation of items
into the customs territory of Russia. So, according to article 72 of the Customs code of the
Russian Federation it is established that the cases of complete exemption from customs duties
and taxes in respect of goods temporarily imported is determined by the Government of the
Russian Federation. In other cases, and the failure of the person transporting the goods across the
customs border of Russia, the conditions for full exemption from the implementation of relevant
fees, may apply for partial exemption, which is determined by the State customs Committee in
coordination with the Ministry of Finance of Russia.
In case of partial exemption from customs duties, taxes for each complete and incomplete
month shall be paid three percent of the amount that would be payable if the goods were released
for free circulation. The total amount of customs duties and taxes levied at temporary import
with partial exemption from customs duties and taxes shall not exceed the amount of customs
duties and taxes that would have been payable at the time of importation, if the goods were
released for free circulation. But if these amounts are equal to each other, then the goods are
considered released for free circulation.
 According to the Convention on the temporary importation of goods and other items
temporarily imported (Istanbul, 1990), the exemption from import taxes and duties provided:
• for items intended for display or use at fairs, exhibitions, conferences or similar events,
provided that the amount imported of each type of product should not exceed the need for them
with regard to their purpose;
• for professional equipment, spare parts and auxiliary devices thereto, provided that these
items are owned and imported by a person who is located or resident outside the territory of
temporary import and is used only by the person who goes to the territory of temporary
importation or under its direct control;
• for packages provided that the packages must be re-exported only by the user of the right of
temporary importation (may not even be used temporarily for domestic flights);
• for containers provided that they are properly marking (and before export containers can be
used in internal traffic only once when delivering direct route to the place or perhaps closer to
where they need to load export goods or where they must be transported empty);
• for pallets;
• for samples and advertising films, provided that they should belong to the person who is
located or resident outside the territory of temporary admission, and be imported only for the
purpose of showing that in the territory of temporary import in search of orders for goods which
will be imported on the same territory. Samples and advertising films during the stay in the
territory of temporary importation may not be sold and shall not, except for the display, used for
their normal purpose or used by the lease or reward;
• for items that are imported and used during the research, tests, experiments or demonstrations,
provided that the use of objects is not aimed at income generation, and import them by itself is
not a commercial operation;
• captured and developed motion picture films, positive and other recorded media images,
designed to show before commercial use, the import of which in itself is not a commercial
operation;
• for films, tapes and other carriers of sound or image, intended for dubbing, duplication or
playback, the import of which in itself is not a commercial operation;
• for recorded media, sent free of charge and is intended for automatic data processing,
provided that the import of such media in itself is not a commercial operation;
• for products (including vehicles) which, by its nature, can only be used to advertise a specific
product or promotion with the appropriate purpose, provided that import of such items in itself is
not a commercial operation;
• for items that are imported for scientific or educational purposes, provided that such items
shall belong to the person who is located or resident outside the territory of temporary
importation, and imported by the authorised enterprises in moderation, taking into account their
purpose. They should not be used for commercial purposes.
In the legal provisions of the International Convention on the simplification and harmonization
of customs procedures (Kyoto Convention, 1973, Annex E. 5) indicated that the customs regime
that stipulates conditional (that is, under certain conditions) exemption from duties and taxes on
imports in respect of goods imported for a specific purpose and intended for re-export to the
same country, is a regime of temporary use. In respect of goods intended for temporary use for
that purpose, as production, work projects or internal transport, of the Convention, it is
recommended to set the regime of temporary use with partial conditional exemption from
customs duties and taxes on imports. Moreover, national legislation may provide for a provision
under which the amount of the duty and taxes charged for these products is determined
depending on the length of their stay in the customs territory, of the depreciation of such goods
resulting from the use of or the amount paid for their hire.
Thus, the analysis of international legislation gives grounds to conclude that international
standards provides for the levying of import taxes in respect of items that are temporarily
imported into the customs territory of the respective country for commercial use (i.e. generating
income) and change their status in the area. In our opinion, in Ukraine it would be advisable to
use a system of customs duties for the temporary importation with the mandatory criteria of
duration of stay of subjects in Ukraine, their depreciation as a result of use or the amount paid for
their hire.
The procedure of passage of items in Ukraine with the aim of temporary import or temporary
export is regulated by article 204 and 211 of the Customs code of Ukraine. Under the pass
consists of the resolution of the customs for the use of the goods and other items into the customs
territory of Ukraine or outside this territory for the purpose stated by the customs. The
mechanism of action of the customs regime of temporary import or temporary export is shown in
Fig. 10.3.
Movement of goods under the temporary importation (exportation) provides: the submission to
the customs authority of documents for such goods with justification of the grounds for their
temporary import to the customs territory of Ukraine (export of Ukraine); providing the customs
authority conducting customs clearance of goods that are temporarily imported (exported), of the
obligation of their return export (import) in time, determined by the purpose of the temporary
importation (exportation), but do not exceed the limits laid down by law; the submission to the
customs authority conducting customs clearance of goods that are temporarily imported
(exported), the approval of the competent authority for temporary import (export) of goods, if
such permission is stipulated by the legislation.

The permission for temporary import into the customs territory of Ukraine (temporary
export outside the customs territory of Ukraine) under the obligation of re-export is
allowed for:
• goods intended for display or use at exhibitions, fairs, conferences or other similar
events
• professional equipment necessary for persons who arrive in Ukraine (leave Ukraine), for the
preparation of reports, implementation records or broadcasts to the media or movie making;
• containers, pallets, packaging, and any other goods imported (exported) in connection with
any commercial operation, but the import of which does not in itself constitute a commercial
operation;
• samples of goods and objects and advertising films, provided that they remain the property of
the person who is located or resident outside the territory of temporary import and their use in
Ukraine has no commercial character;
• goods imported for educational, scientific or cultural purposes, that is a scientific and
educational equipment, equipment for improving the leisure time of the seafarers, and any other
goods imported within the framework of educational, scientific or cultural activities;
• the passengers ' personal belongings and goods imported for sport purposes;
• materials for advertisement and tourism;
• vehicles used exclusively for carriage of passengers and goods across the customs border of
Ukraine.
 The decision of approval of the goods movement across the customs border of Ukraine under
the temporary importation (exportation) is accepted by the customs authority in accordance with
the procedure determined by the Cabinet of Ministers of Ukraine. In this case the customs
authorities do not allow the goods to move to a regime of temporary importation (exportation) if
it is not possible to establish the reliability of their identification, and in the absence of
guarantees of their return.
In the case of temporary importation (exportation) of certain goods, which are determined by
the Cabinet of Ministers of Ukraine, customs clearance of goods under the temporary
importation (exportation) of the customs authorities subject to the guarantee in accordance with
the law compliance with the regime of temporary import (export).
Mandatory condition for the movement of property in this customs regime is the accreditation
of the owner to customs in General
proceedings by filing of statutory documents and other necessary information. View licenses in
cases where items are subject to quotas and licensing is not required.
The Declaration of assets is performed by companies that import to Ukraine or export from the
territory of the property independently or on a contractual basis through an organization
recognized by the customs as customs brokers. The property the value of which exceeds $ 100 is
declared at the customs through the submission of information in the customs Declaration. If the
value of the property is less than $ 100. USA, a customs Declaration is not filled. Declaring that
such property is carried out by providing information about it in the accompanying and other
documents.
In some cases, if the items subject to control from other agencies for customs clearance of the
property, in addition to the cargo customs Declaration and the documents (TTN, TSN, contract),
you must present an authorization data from national authorities. For example, on permission of
the Ministry of culture are exported (sent) publications which have a reference: encyclopedias,
reference books (except for school), a multi-volume dictionaries, language dictionary that was
published after 1923, and works of applied and decorative arts, including contemporary authors.
For the temporary importation or temporary exportation from Ukraine leased property for a
period of up to one year in customs Declaration shall indicate the number and date of the lease.
But property which is imported into the customs territory of Ukraine and exported abroad subject
to long-term rent (leasing) more than one year, subject to customs clearance as the goods and,
accordingly, falls under the system of customs taxation.
If the foreign investor imports a property that is classified as a contribution of foreign investor
to the Charter Fund of enterprises with foreign investments (except goods for sale or own
consumption), then the property is exempt from duty under the following conditions:
1) the company has the status of an enterprise with foreign investment, i.e. foreign investment
in the Charter Fund constitutes not less than 10 %;
2) in the prescribed manner the information message on the state registration of foreign
investments, which comes to Ukraine as contribution of foreign investor to the Charter Fund of
enterprises with foreign investment.
Customs authorities shall pass such property on the territory of Ukraine on the basis of issued
the company a promissory note in the amount of the fee with a deferred payment of not more
than 30 calendar days from the date of registration of customs Declaration.
The promissory note is redeemed and import duty is not charged if in the period for which it is
given a deferred payment, the assets credited to the balance sheet and the tax Inspectorate at the
location of the enterprise made a corresponding notation on the copy of bill. The procedure of
issuance, recording and payment of bills by the Cabinet of Ministers of Ukraine.
If within three years from the time of admission of foreign investment on balance of the
enterprise with foreign investments the property, which was imported into Ukraine as
contribution of foreign investor in the authorized capital of the specified enterprise, is alienated,
including in connection with the termination of activity of this enterprise (except export foreign
investment abroad), the enterprise with foreign investments pay import duty calculated on the
basis of the customs valuethose of the property listed in the currency of Ukraine at the official
exchange rate of Ukraine, established by the National Bank of Ukraine on the day that the
alienation of property.
The subjects intended for official (office) use of representatives of foreign States and
international, intergovernmental organizations, which enjoy customs privileges, and also
representations of foreign companies are subject to Declaration by the customs bodies of the
cargo customs Declaration. The items of official use of representatives of foreign States and
international intergovernmental organizations are exempt from paying duties and customs fees.
These items allow Ukraine under the obligation about return exporting abroad. However, with
the consent of the customs authority, the period of importation of such items may exceed one
year, but the alienation in Ukraine, they should not be subject to. That is, they must be taken
abroad on a specified obligation period. In the case of export of such items according to the
current customs legislation reregistered as a commodity.
Items intended for expenditure in connection with the activities of representative offices of
foreign companies, including construction materials, and is intended for representational
purposes food, alcoholic beverages, beer, tobacco products are passed to Ukraine after payment
of duty. Are exempt from paying fees advertising materials and Souvenirs designed to promote
the activities of the representative office of a foreign company.
It should be noted that there is quite a substantial the classification criterion for applying this
customs regime, namely, the period of its use, which is limited to one year. That is, everything
that is imported or exported in the customs regime may be only one year, and in excess of this
period automatically goes to another customs regime with the appropriate consequences. But
given the purpose of importation (exportation) of the goods and other circumstances, the period
may be extended by the relevant customs authority.
Before the end of terms of temporary import (export) the person who provided the obligation
about return export (import) of goods under the temporary importation (exportation), or should
export (import) of these commodities in accordance with a commitment provided to the customs
authority, or to report a change of customs regime that allowed for the goods in compliance with
the requirements of the legislation of Ukraine.
If the property was imported into the territory of Ukraine in customs regime "temporary import
(export)" after the end of the mandatory period of the removal and failure of this action, its
import would be classified as import of goods with appropriate customs procedures, taxation,
customs control and clearance. At the same time it should be noted that the customs authority in
the area of the organization is using in Ukraine customs privileges, may extend the period
specified in the undertaking, but the subject of foreign economic activity must submit to the
territorial customs office the following documents:
1. The reasoned statement (containing the list of all attached documents) about the extension of
the import (export) may be made by the chief customs or his Deputy for operations in the
customs authority, which sanctioned the omission of the property through the customs border of
Ukraine. Nezavisiamaya treatment of the Territorial customs Department will not be accepted.
2. A copy of the cargo customs Declaration for temporary import (export) of property referred
to in the letter.
3. Other documents specified in column 44 of the cargo customs Declaration (copies of
contracts, copies of contracts for testing of technical equipment, motivated telegrams and appeals
of foreign firms in favor of extending these deadlines, and the like), which are taken into
consideration by customs authorities in making appropriate decisions.
According to the Customs code of Ukraine the term of temporary import (export) limited of one
year from the date of crossing the customs border of Ukraine. This deadline is usually set by the
chief customs or his Deputy subject representative of the subject of foreign trade activities and
practical need.
Temporary import or temporary export of goods and other items is carried out under the
obligation about return export (import). That is, the goods and other items are passed through
customs border of Ukraine, in these cases must be returned to the customs territory of Ukraine or
exported abroad without any changes except natural.
Goods and other items temporarily imported into the customs territory of Ukraine before the
expiry of the period specified in the undertaking must be:
• exported outside this territory;
• or is declared to customs for the purpose of free circulation;
• or given to customs in order to transfer the property to the state;
• or given to customs for storage;
• or destroyed under customs control, if such goods and other items may not be used as a
product or material.
Goods and other items temporarily exported outside the customs territory of Ukraine before the
end of the period specified in the undertaking must be:
• imported into the customs territory of Ukraine;
• or is declared to customs for the purpose of free circulation outside this territory;
• or is declared to customs as such, disappeared or destroyed outside the customs territory of
Ukraine, if the fact of loss or destruction is confirmed in the procedure established by the
Cabinet of Ministers of Ukraine.
The customs regime of temporary import (export) is completed after the expiry of established
by the customs body of time. With proper execution of the procedures, indicating the termination
of the regime, a person who temporarily imported (exported) goods shall be exempt from the
obligations imposed on it. Otherwise, the person is liable for violation of the rules of granting
and use of the customs regime.
1. Prior to the expiration of the temporary importation period, the goods must be:
— exported outside the customs territory of Ukraine allowed the export of goods in several
batches);
— the stated customs for free circulation;
— refusal in favor of the state (article 246 HS);
— transmitted to and stored by customs;
— destroyed under the customs control, if such goods cannot be used as products or materials
(articles 243-245 HS).
2. Prior to the expiration of the temporary export goods must be:
 — imported into the customs territory of Ukraine (to permit the importation of goods in several
batches);
declared to customs in accordance with customs regime of export;
declared the custom as those that died or were destroyed outside of the customs territory of
Ukraine, if the fact of death or destruction is confirmed in the procedure established by the
current legislation.
Documents (certificates, statements, etc.) on the death or destruction of temporarily exported
goods and other items outside the customs territory of Ukraine shall prepare and make sure
exclusively on the territory of the country of location of the goods and other items in accordance
with the requirements of the legislation of this country. These documents must be legalized by
consular institution of Ukraine abroad, after which they acquire legal force in Ukraine, if
otherwise is not stipulated by international treaties of Ukraine.
Ukraine has agreements on legal assistance with several countries, which includes the waiver of
legalization. Documents drawn up or certified by competent agencies of these countries (customs
authorities, chamber of Commerce and the like) are taken to consideration by the customs
authorities without legalisation in consular offices of Ukraine.
Consular legalization is to establish and authenticate the signatures on documents. Consul
legalizes documents and acts, drawn up with the participation of the authorities of consular
district or coming from these authorities. In case of absence in the country of origin documents
the consular institutions of Ukraine the documents can be certified at the nearest consular
establishment of Ukraine, whose powers are officially distributed on the territory of the country
of origin of the documents.
When a consular institution of Ukraine, which represents the interests of Ukraine in the country
of origin of the documents is missing, and it is impossible to legalize the documents referred to
in the preceding paragraph, the documents authenticated by the consular office of their country
of origin in the country where there consular institution of Ukraine. Only after that the
documents can be legalized by consular institution of Ukraine, after which they acquire legal
force in Ukraine.
In exceptional cases, if it is impossible for objective reasons to legalize documents in one of the
consular offices of Ukraine abroad, documents can be legalized at the Consular Department of
the MFA of Ukraine under condition of their certification by the Ministry of foreign Affairs of
the country of origin of the documents (or other authorised body) and the Consulate of this
country in Ukraine. The presence of such companies in Ukraine is mandatory.
Under article 348 of the Customs code of Ukraine the export of articles imported into the
customs territory of Ukraine under the obligation to re-export or return to the customs territory of
Ukraine of objects taken abroad under the obligation to re-export within the time established by
these obligations shall entail imposing a fine on citizens in the amount of up to one officially
applicable on the date of committing violation of customs regulations and minimum wages with
confiscation of these items.
In case of impossibility of confiscation of objects which are direct objects of violation of
customs regulations persons who committed such violation shall be recovered the cost of these
items. The costs of the customs authority for the storage of items in respect of which made the
confiscation order shall be reimbursed by the person who committed violation of customs
regulations (article 326 HS). If the violation of customs regulations committed by a legal person,
liable officials— the leaders of these companies (article 320 HS).
The most common property of temporary import (export) are:
 • vehicles moving through the customs border of Ukraine;
• items exported (imported) for the purpose of holding exhibitions;
• humanitarian and technical assistance.
If the vehicles moved through customs border of the temporarily imported (exported) property,
he shall be declared under the obligation to re-export (import) by filling in a separate customs
Declaration.
In the case of temporary importation of vehicle permit on the right of its alienation is the new
cargo customs Declaration.
decorated on the import (the import for permanent use) of the vehicle, in which in the column
47 must be provided information about payment of fees and customs fees. In other cases,
permission on the right of alienation is a mark of customs in the graph D of the cargo customs
Declaration filled when importing this vehicle on the lifting of customs restrictions, certified by
the personal numbered stamp of the customs officer and the official stamp of the customs.
Vehicles moved through the customs border of Ukraine by subjects of foreign trade activities,
under customs control. In this vehicle, imported for temporary use prior to the expiration of the
terms specified in the customs Declaration or in an automobile of the Declaration, must either be
exported outside the territory, or to apply for another customs regime.
One of the most common examples of temporary importation is the holding of international
exhibitions as a form of foreign economic activity. Exhibition property, with the exception of
items that are not subject to permit, it is forbidden to import-export or transit skips outside
Ukraine or to Ukraine, subject to completion of such requirements:
• mandatory Declaration of assets in accordance with the UAD (Uniform administrative
document) customs Declaration of the MD-2, MD-3 under the obligation of re-importation or
exportation;
• provision of specifications, invoices, packing lists, invoices;
• contract with other public agencies if the property is subject to the control of these bodies;
• application in the established order of customs payments.
Exhibition property shall be issued at the customs office in whose service area is a subject of
foreign economic activity. Customs imposes a duty property, conducts its accounting and
monitoring its return import in Ukraine according to the specified in the customs Declaration
obligation.
Exhibition cargo it is recommended to declare and pack according to the following criteria:
• low-cost assets: the exhibits and the stand equipment;
• expendable property: promotional materials and representative property (gifts, etc.).
In the case when the exhibition property that is temporarily exported from Ukraine, remains
outside with the purpose of free circulation, excluding goods subject to licensing or restriction, it
shall be re-declared at the customs office that issued their export, by submitting a new cargo
Declaration and other documents, which entails the need for payment of fees and customs duties.
Operations with humanitarian assistance, clearly defines the Essentials, which are transferred
on a gratuitous basis in accordance with the shipping documents. These include:
• food;
• medicines and medical equipment;
• vehicle medical appointments (confirmation of regional tax inspections);
• shoes, clothes, underwear, bedding;
• items of sanitation and hygiene.
 • printed products are transferred on a gratuitous basis state budget to libraries and scientific
institutions and public organizations and is not intended for alienation on a fee basis.
Can't relate to the items that come in the form of humanitarian assistance to excisable goods.
Humanitarian assistance is declared without filling the cargo customs Declaration, without the
payment of customs duties, value added tax and duties.
The relief items that are not included in the above list are exempt from customs duties upon
recommendation of the Commission on coordination of receiving, transporting, protection and
distribution of humanitarian aid received from foreign countries under the Cabinet of Ministers
of Ukraine.