The Cabinet Has Brought into Force An Additional Fee for 2015 of 5-10% on Import

The Cabinet of Ministers of Ukraine issued the Regulation №19-р dated February 16, 2015, under provisions of which the consultations with international financial organizations on introduction of temporary measures to stabilize the balance of payments Ukraine are over.

The Regulation was issued in execution of the Law of Ukraine ‘On measures to stabilize the balance of payment of Ukraine under Article XII of the General Agreement on Tariffs and Trade 1994’ and the Law of Ukraine ‘On Amendments to the Customs Code of Ukraine concerning the balance of payment’.

It will be recalled, that the Verkhovna Rada had passed and the President signed the Law of Ukraine ‘On measures to stabilize the balance of payment of Ukraine under Article XII of the General Agreement on Tariffs and Trade 1994’ dated December 28, 2014 N 73-VIII, which introduced a temporary import surcharge for a period of 12 months.

Import surcharge is levied on goods imported in the customs territory of Ukraine, regardless of their country of origin and free trade agreements signed by Ukraine.

The items of taxation will be the goods stated in Para.1, 2 Part 1 of Art. 277 of the Customs Code of Ukraine, except for the goods stated in Art. 5 of the Law.

The tax basis of import surcharge is the customs value of goods, which is assigned in accordance with the rules, set forth by the Customs Code of Ukraine.

Import surcharge is collected according to the following tax rates:

• 10 % - goods of goups 1 - 24 UGCFEA [Ukrainian goods classification of foreign economic activity] (food);
• 5 % - goods of groups 25 - 97 UGCFEA (other goods, including pharmaceuticals and medical products);
• 10 % - goods, stated in Art. 374 of the Customs Code of Ukraine (hand luggage).

It should be noted, that Art. 5 of the Law of Ukraine ‘On measures to stabilize the balance of payment of Ukraine under Article XII of the General Agreement on Tariffs and Trade 1994’ defines a list of goods, which are not subject to import surcharge. Such goods include medical products for hemodialysis and the ones for cancer treatment, in accordance with the list, approved by the Cabinet of Ministers of Ukraine. The above list is approved by the Cabinet of Ministers of Ukraine dated February 16, 2015 №63.

One last thing. The Law of Ukraine ‘On measures to stabilize the balance of payment of Ukraine under Article XII of the General Agreement on Tariffs and Trade 1994’ will come into effect and give the green light to import surcharge as soon as the Regulation of the Cabinet of Ministers of Ukraine dated February 16, 2015 is officially published in the ‘Uryadoviy Kurier’ newspaper.