Ukraine-EU Customs Agreement Comes into Effect

KYIV, Ukraine, June 26, 2012 /PRNewswire/ --

Ukraine and the EU begin cooperation in information exchange and risk management as the joint framework cooperation strategy regarding customs comes into force. The First Vice Prime Minister of Ukraine Valeriy Khoroshkovskyi informed about the initiative to create the bilateral working group to implement the agreement.

The new plan of EU-Ukraine cooperation - Strategic Framework for Customs Cooperation - will contribute to the quality of bilateral trade relations, as well as help protect the citizens of both parties against customs fraud. The strategy features four components: reform of customs control, preparation of the expansion of the transit system, institutional development, and customs information exchange.

In May of 2012, the EU and Ukraine reached political agreement over the document. The draft of the document was first submitted to the EU in July of 2011.

Customs cooperation of the EU and Ukraine for 2011-2013 includes three priorities. The first priority is the creation of safe and smooth conditions for trade. Namely, the sides aim to speed up all customs proceedings, integrate border control, and improve border infrastructure.

The second priority of Ukraine-EU customs cooperation is the introduction of the effective analysis system of customs violations. This is to be done through information exchange between the parties. The third priority is the modernization of Ukraine's customs service, including fight against corruption, simplification of procedures, and introduction of up-to-date standards in the customs service.

Recently, in an effort to improve customs system, Ukraine introduced a more elaborate and transparent VAT return system, as well as simplified its customs procedures. As part of Ukraine's efforts to implement international standards, including European, into its customs legislation, in March of 2012 the Ukrainian parliament adopted a new Customs Code of Ukraine.

The EU customs and logistics experts participated in the preparation of the code. Among the most valuable innovations, introduced by the document, is the right of entities of foreign economic activity to be subjected to customs processing at any customs body.

The code regulates the enforcement of time limit in customs control procedure performance, prohibits customs authorities to confiscate goods and vehicles, as well as strips customs authorities of the right to execute court rulings independently. The new code features the exhaustive list of documents one is required to submit at customs.

SOURCE Worldwide News Ukraine