L&M Finance Group

July changes in legislation for the period of martial law


The Cabinet of Ministers of Ukraine canceled the list of critical import goods

Since the approval of Law No. 2325-IX of 07/01/2022 on the resumption of customs payments (cancellation of benefits), the National Bank has announced the abolition of critical imports, as stated on the official website of the NBU.
At the same time, by Decree of the Cabinet of Ministers of July 7, 2022 No. 761, an amendment was made to Decree No. 153 , as well as a decision to invalidate paragraph 1 of Decree of the Cabinet of Ministers of Ukraine No. 289 (criteria for determining critical imports, a list of goods of critical imports).
From July 9, 2022, there is no longer a list of critical import goods, as stated in paragraph 2 of Decree of Cabinet of Ministers No 761.
In connection with the cancellation of the list of goods by the Decree of the NBU No. 142 dated 07/07/2022 , a number of changes were made to the Decree of the NBU No. 18 . Thus, from July 09, 2022, settlement transactions with non-residents can be carried out for any goods of groups 01–97 of Ukraine classification of foreign economics goods (UKT ZED) in accordance with the Law of Ukraine "On the Customs Tariff of Ukraine", provided that such supply transactions took place after February 23, 2021, from present limitations in the calculations of "critical services".

Licensing for TPEH

Starting from July 1, 2022, the changes introduced by Law No. 1019- IX from 02.12.2 02 0 . Thus, the requirements of Law No. 481 apply to tobacco products for electric heating (TPEH) using an electronically controlled heater , in particular:
·     licensing of this production, wholesale and retail trade (according to art. 2 - 3, art. 15);
·     certification of production for compliance with the requirements, norms and standards established by the current legislation of Ukraine to ensure the life and health of people, environmental protection; full technological cycle of production of tobacco products; control over the operation and technical condition of devices for the production of products; compliance with sanitary, fire, environmental standards and regulations (according to Art. 8);
·     bringing to responsibility for violation of the requirements and norms of the law on production (according to Art. 17).

The government canceled wheat export licenses

On July 8, 2022, Decree No. 759 of the Cabinet of Ministers of Ukraine came into force, which amended Decree No. 1424 of December 29, 2021 regarding the list of licensing goods for export and import.
Thus, according to the decree, such goods as - wheat, a mixture of wheat, rye (UKT ZED product code 1001); oats (product code UKT ZED 1004) are excluded from the list of goods subject to licensing, as well as bans on their export have been lifted.
At the same time, the decree introduced a ban on the export of mineral or chemical, nitrogen fertilizers (UKT ZED code 3102).
The full list of goods whose exports and imports are subject to licensing and quotas for 2022 can be found at the link .

Penalties business for non-compliance with safety rules at the enterprise at the time of the martial law

On July 11, the Verkhovna Rada published draft law No. 7546, the purpose of which is to establish criminal liability for violation of the requirements of legislation in the field of civil protection for the period of martial law.
The bill proposes to establish penalties for enterprises, officials or citizens-subjects of entrepreneurial activity, in cases where such a violation has caused harm to people's health. Such a violation provides for punishment under the guise of fines from one thousand to three thousand non-taxable minimum incomes of citizens, or regular work for up to two years, or restriction of liberty for up to three years, or imprisonment for the same period.
In cases of such a repeated violation, or if it caused the death of people or other grave consequences, punishment is provided in the form of imprisonment for a term of three to eight years, with deprivation of the right to hold certain positions or hold certain positions for up to five years.

The list of economic activities that cannot be carried out on the basis of a declaration at the time of martial law has been updated

From July 13, an expanded list of types of economic activities that cannot be carried out on the basis of declarations on the conduct of economic activities has been in force. According to the Decree of the Cabinet of Ministers No. 314 of 18.03. 20 22 in this list were added the following types of economic activity :
·     import of medicines (except for active pharmaceutical ingredients), wholesale and retail trade in medicines;
·     medical practice activities;
·     activities in the field of electric power industry, in the natural gas market, in centralized water supply and centralized drainage, in the production of thermal energy, transportation of thermal energy through main and local (distribution) heating networks, supply of thermal energy and other activities, the licensing of which is carried out by National Commission for State Regulation in the Spheres of Energy and Utilities (NCSEU), in accordance with by law;
·     activities related to the development, manufacture, supply of special technical means for removing information from communication channels and other technical means of secretly obtaining information;
·     professional activity in the capital markets and organized commodity markets;
·     activities in exclusion zones and unconditional (mandatory) resettlement;
·     import to Ukraine and export outside of its borders of objects of the animal world;
·     import to Ukraine and export outside of its borders of flora objects;
·     import and export of samples of species of wild fauna and flora, traveling exhibitions, re-export and introduction from the sea of these samples, which are objects of regulation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, in terms of sturgeon fish and products made from them.
The types of activities presented above, declarations on the implementation of the types of economic activities of which, included in the updated list by the resolution, will be valid for six months from the date of entry into force of this resolution. During this period, enterprises will be required to obtain permits in the manner and on the terms provided for by the legislation on licensing such types of activities.

Changes to the customs code, simplification of the process of declaring goods

On July 27, the Verkhovna Rada of Ukraine adopted draft law No. 4517 , which introduced changes to the Customs Code of Ukraine regarding the regulation of the process of declaring goods in a simplified form. This means the ability to group goods with similar characteristics under one code and provide their full description in one column of the customs declaration.
Thus, innovations in the code will be supplemented by the following :
- at the request of the declarants, a simplified declaration of a consignment of goods classified in various commodity sub-positions according to the UKT ZED, according to one classification code, is allowed, provided that this code corresponds to the highest duty rate within one commodity item of the UKT ZED;
- this type of declaration simplification will also apply to exports;
- in cases of using this type of simplification, the specific duty rate will be recalculated into an ad valorem rate, a percentage of the value of the taxable object, in order to collect the duty at the highest rate.