Ukraine transitions to EU customs rules: Council supports new Customs Code

The Verkhovna Rada of Ukraine supported in the first reading the draft law No. 15450 on the new Customs Code. The document should bring the Ukrainian customs system closer to the rules of the European Union and become one of the key steps on the path of Ukraine’s integration into the EU customs union.

The project has already received a positive assessment from the European Commission. In addition to its European integration significance, its adoption is associated with Ukraine receiving macro-financial assistance — the Ukraine Support Loan of 1.5 billion euros.

781 articles and transition to EU rules

The new Customs Code is built according to the logic of the customs legislation of the European Union and consists of 781 articles.

The document provides for the transition to EU customs terminology, European approaches to declaration, authorizations, customs procedures, determination of customs debt, guarantees and exemption from payment of customs duties.

For Ukrainian business, this should mean more understandable and predictable rules of operation, close to those already applied in the European market.

What will happen to existing business permits

A sudden cancellation of authorizations already obtained by businesses is not expected.

Indefinite authorizations will continue to be valid, while temporary authorizations will remain valid until the end of the established period.

Companies with the status of an authorized economic operator (AEO) will also retain their advantages. Among them are fewer physical and documentary checks and priority customs clearance.

In the future, mutual recognition of such status by customs authorities of other countries is expected.

Businesses will receive the “right to be heard”

One of the important innovations will be the introduction of the so-called “right to be heard”.

Before the customs authority makes a formal decision, the company will be able to provide additional arguments and prove the validity of the declared customs value.

It is expected that such a mechanism will allow resolving some disputes at the administrative stage and reduce the number of lawsuits between businesses and customs authorities.

Customs is being transferred to the “digital”

The Code provides for further digitalization of customs procedures.

Information exchange between business and customs should take place through an electronic “single window”. Permit documents from other state bodies will be received into the system automatically.

For entrepreneurs, this should reduce the number of paper documents and the need for personal visits to customs. At the same time, automation of procedures should reduce the impact of the human factor and corruption risks.

How to appeal customs decisions

The document establishes a clearer mechanism for appealing decisions, actions or inaction of customs authorities.

Initially, businesses will be able to appeal to a higher-level customs authority, and if the issue cannot be resolved, to the court.

The procedure is planned to be harmonized with the Law of Ukraine “On Administrative Procedure”.

What will happen to customs privileges

The draft law proposes to preserve the current privileges for paying import duties. In particular, these include benefits related to Ukraine’s defense capability, energy, and humanitarian aid.

The current thresholds for duty-free import of goods in citizens’ luggage should remain in place during martial law and for a year after its end.

For land transport, these include goods worth up to 500 euros and weighing up to 50 kg, for air transport – up to 1,000 euros and 50 kg.

Customs officers may receive new powers

A separate block of the reform concerns the fight against customs offenses.

The Code provides for the possibility of granting customs authorities operational-search and investigative powers. A similar practice, as noted by the Ministry of Finance, operates in 25 EU countries.

At the same time, these norms will not automatically come into effect together with the new Code. The limits and criteria for the powers of customs officers should be separately determined by amendments to the Criminal Procedure Code and other laws after consultations with the prosecutor’s office, business, and experts.

When will the new Customs Code come into force?

The new Code is expected to enter into force on December 1, 2027.

The transition period should give businesses and customs authorities time to adapt to the new rules. The implementation of electronic systems will be phased in and should be completed by the end of 2029.

The adoption of the document is also one of the conditions for Ukraine to receive 1.5 billion euros in macro-financial assistance, which is planned to be used to cover key state budget expenditures.