This would make it possible to move to the application of uniform standards in customs. Which, in fact, happened - on June 4, 2020, the Verkhovna Rada of Ukraine adopted the Law of Ukraine № 674-IX "On the Customs Tariff of Ukraine", which entered into force today, July 3, 2020.
The new law did not change the rates of import duties, but there were additions, clarifications of codes, descriptive parts of individual goods, notes to product groups.
From now on, the Ukrainian classification of goods of foreign economic activity (hereinafter - UCGFEA) is brought in line with the current version of the Harmonized Commodity Description and Coding System of the World Customs Organization (latest version in 2017). All changes in the modern version of UKTZED are a mirror image (authentic translation) of the changes that occurred during the transition to the Harmonized System of the modern version of 2017.
What will it give to the business and what will it affect?
Prior to the adoption of the new Law, the Customs Tariff of Ukraine was built on the basis of the Harmonized Commodity Description and Coding System (hereinafter - HS) version 2012. Whereas the application of tariff and non-tariff regulation measures in most countries of the world, in particular in the countries of the European Community and the CIS countries, from 01.01.2017 is carried out on the basis of HS-2017.
That is, our customs authorities were guided by outdated standards of description and coding of goods. And the EU countries are guided by GS-2017. As a result of such differences in the classification of goods, Ukrainian business had problems with the classification of new equipment, which the outdated coding system of goods can not recognize.
In addition, differences in the use of product coding systems created problems due to different product codes. For example, one product code is assigned by the exporting country and the other by Ukraine. Therefore, businesses had to go to court to protect their rights and interests.
What are the features of the new customs tariff?
The Customs Tariff of Ukraine is an integral part of the law and contains a list of national tax rates - import duty on goods imported into the customs territory of Ukraine and systematized according to the Ukrainian Classification of Goods for Foreign Economic Activity (UCGFEA), based on the Harmonized Commodity Description and Coding System .
Import duty rates may be set or changed only by laws amending the customs tariff of Ukraine.
At the same time, the Law № 584-VII “On the Customs Tariff of Ukraine” expired. He was replaced by the Law № 674-IX "On the Customs Tariff of Ukraine". The new law provides for the customs clearance of goods in Ukraine with the application of modern international customs law in terms of classification of goods.
Why is there a need for changes in the UCGFEA?
These changes occur periodically in connection with technical progress (new technical products appear), to ensure a clearer presentation of product names, to control and combat the transportation of drugs and weapons (new types of which also appear periodically), for food safety, fighting epidemics, etc.
In total, 233 amendments were made to the latest edition of the Harmonized System in 2017, which, accordingly, should be taken into account in the domestic UCGFEA. For example, a new separate heading 9620 was created, which includes monopods, tripods (tripods), selfie sticks. Instead, two commodity items 2848 (inorganic phosphides) and 8469 (typewriters) were withdrawn due to scant trade. At the same time, due to the increase in trade, new codes have been created for such goods as tangerines and clementines, soft beer, wine in bags (bag-in-box), coenzyme Q10, etc. A number of changes have been made to separate antimalarial products into separate codes. For a better understanding, the wording "infant food" has been replaced by the words "foods suitable for infants and young children".
The State Customs Service assures that the modern UKT FEA will simplify the comparison of customs statistics, simplify the analysis of trade flows at the customs border of Ukraine, speed up customs clearance.
"In fact, UCGFEA in the version of the Customs Tariff of Ukraine is a multifaceted, voluminous and complex document, which sets the codes for a huge number of goods (about 11 thousand 10 significant codes). For the correct classification of goods by the State Customs Service to UCGFEA version of 2017 (these tables are approved by the order of the State Customs Service №234 of July 1, 2020) ", - it is said in the message.
