Rada approved new Customs Code on first reading to transition to EU rules
Kyiv • UNN
The Verkhovna Rada supported Draft Law No. 15450 on first reading. The Code is to enter into force on December 1, 2027, and pave the way for €1.5 billion in aid.
The Verkhovna Rada adopted the European integration draft of the new Customs Code of Ukraine in the first reading, the Finance Ministry reported on Wednesday, noting that "in October we have to show our international partners the signed law," UNN writes.
Details
"The Verkhovna Rada of Ukraine supported in the first reading Draft Law No. 15450 – the new Customs Code of Ukraine," the Finance Ministry reported, adding that work on it had lasted "about two years" and that it had "received a positive assessment from the European Commission."
The document, it is reported, "creates the legal basis for transitioning to customs rules, terminology and security standards unified with those of the European Union and is a key step on the way to Ukraine's accession to the EU Customs Union."
"The adoption of the new Customs Code of Ukraine is a necessary condition for negotiating Chapter 29, ‘Customs Union,’ and bringing Ukraine closer to EU membership. The unified customs rules proposed in the document provide transparency of procedures for businesses, while for the economy they open up new opportunities for exports, attracting investment and integration into European supply chains. At the same time, the adoption of the new Customs Code is one of the conditions for receiving macro-financial assistance (Ukraine Support Loan), which will make it possible to attract EUR 1.5 billion to the state budget to cover key expenditures," Finance Minister Serhii Marchenko emphasized.
The draft new Code, it is reported, is built according to the logic of European customs legislation and contains 781 articles. It is scheduled to enter into force on December 1, 2027 – "businesses and customs authorities will have time to adapt, while the transition to new electronic systems will be completed in stages by the end of 2029."
Main innovations
- EU terminology and approaches. A complete transition to the customs terminology of the European Union, the introduction of a system of authorizations and customs procedures, as well as the European approach to decision-making, declarations, customs debt, guarantees and exemptions from customs duties.
- EU terminology and approaches. A complete transition to the customs terminology of the European Union, the introduction of a system of authorizations and customs procedures, as well as the European approach to decision-making, declarations, customs debt, guarantees and exemptions from customs duties.
- Continuity for businesses. Existing indefinite authorizations will remain valid, while fixed-term authorizations will remain valid until their expiry. Companies with authorized economic operator (AEO) status will retain the benefits of being a trusted partner of customs: less physical and documentary control, priority clearance and, in the future, mutual recognition of their status by the customs authorities of other countries.
- “The right to be heard.” A procedure is being introduced under which businesses will be able to prove the validity of their declared customs value before customs makes a formal decision, which should reduce the number of court disputes.
- Full digitalization. The Code establishes data exchange between businesses and customs through an electronic “single window,” into which permit documents from other authorities will be submitted automatically. For entrepreneurs, this means less paperwork, fewer personal visits to customs and less room for subjective decisions – and therefore lower corruption risks.
- Transparent appeals against decisions. A clear procedure is established for appealing decisions, actions or inaction by customs authorities – first to a higher-level authority and, if necessary, to a court — aligned with the Law of Ukraine “On Administrative Procedure.”
- Preserved benefits. The draft fully preserves the existing exemptions from import duty taxation, in particular to support defense capabilities, the energy sector and the provision of humanitarian assistance. For the period of martial law and one year after its end, the duty-free thresholds for goods in citizens’ luggage will also remain in place (up to EUR 500/50 kg by land transport and up to EUR 1,000/50 kg by air transport).
- Customs operational and investigative powers. The Code provides for granting customs authorities operational and investigative powers—a practice common in 25 EU member states. These provisions will not enter into force simultaneously with the adoption of the Code: the criteria and limits of customs officials’ powers will be separately defined in amendments to the Code of Criminal Procedure and other laws following consultations with the prosecutor’s office, business representatives, and experts.
What’s next
The bill has been adopted as a basis. All proposals submitted by the Members of Parliament of Ukraine will be considered while preparing it for the second reading.
Our common goal is to adopt a high-quality Customs Code within the time limits set by the terms of macro-financial assistance. In October, we must present our international partners with a signed law. This will make it possible to receive funds from the European Union to finance priority budget expenditures—salaries for teachers and medical workers, pensions, support for the population and small and medium-sized businesses, as well as the reconstruction of damaged social facilities and critical infrastructure
According to the minister, "the new Customs Code will help Ukrainian exporters adapt more quickly to the EU market, optimize logistics, increase competitiveness, and transform Ukrainian customs into a European-standard border service."
More information about the draft new Customs Code of Ukraine is available in the special section on the Ministry of Finance website.