Ukraine reintroduces a concept of Authorised Economic Operator for customs purposes with new law coming into force

On 7 November 2019, law No. 141-IX which amends the Customs Code of Ukraine, and reintroduces an authorised economic operator (AEO) concept, came into force. The adoption of the law is part of Ukraine's commitment to its Association Agreement with the European Union.

Whilst, for a long period of time, the Customs Code of Ukraine had provided for the same status, its relevant provisions were not able to be applied in practice. The new rules will allow businesses to benefit from similar AEO status as granted in the EU.

The law provides for two types of AEO authorisation:

  • granting the right to apply special simplifications (AEO-C); and
  • confirming safety and reliability (AEO-S).

AEO-C authorisation provides for the following special simplifications and benefits:

  • general financial guarantee;
  • self-placement of seals of a special type;
  • simplified customs declaration procedure;
  • local clearance procedure;
  • priority completion of customs formalities;
  • a lower risk score to be applied by the automated customs clearance system in order to expedite customs formalities;
  • granting of permission for commercial vehicles to use a special traffic lane  for border crossing; and
  • use of the national AEO logo.

AEO-S authorisation provides for the following special simplifications and benefits:

  • self-placement of seals of a special type;
  • prior notification given when goods and commercial vehicles are selected for a customs inspection at the Ukrainian border checkpoint;
  • priority completion of customs formalities;
  • a lower risk score to be applied by the automated customs clearance system in order to expedite customs formalities;
  • granting of permission for commercial vehicles to use a special traffic lane for border crossing; and
  • use of the national AEO logo.

The following requirements will be required to be met by companies applying for AEO authorisation:

  • compliance with customs and tax legislation of Ukraine and absence of criminal records;
  • proper accounting, commercial and transport documentation;
  • stable financial position;
  • ensuring proper standards of competence or professional qualification of the responsible official of the company; and
  • compliance with safety and reliability standards.

AEO-C authorisation will be granted to companies that comply with the criteria specified in points 1 to 4.

AEO-S authorisation will be granted to companies that comply with the criteria specified in points 1 to 3 and 5.

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