Business news from Ukraine

Business news from Ukraine

State Customs Service notes increase in number of companies with status of authorized economic operator

4 July , 2024  

The State Customs Service of Ukraine has granted the status of an authorized economic operator (AEO) with the right to apply simplified procedures to 46 companies, with 50 authorizations issued.

“A year ago, only one company in Ukraine had the AEO status, and now we are pleased to announce 50 authorizations received by 46 companies in total,” the agency said in a post on its Telegram channel.

The State Customs Service clarified that two of these companies received both types of authorizations at the same time: “on granting the right to apply simplifications” (AEO-C) and “on confirmation of safety and reliability” (AEO-B), which brings Ukraine closer to the possibility of concluding a mutual recognition agreement with other countries where the AEO program operates.

The agency emphasized that the list of roles that authorized companies play in the international supply chain has significantly expanded: 31 manufacturers (exporters), 10 importers, three warehouse holders and four companies that are carriers, forwarders and customs representatives have been granted AEO status.

According to the SCS website, the list has been updated with the following companies: Zaporizhzhia Non-Ferrous Alloys Plant (Ivano-Frankivsk), Firm Kaskad LLC (Dnipro), Ukrainian Kaolin Society (Hlukhivtsi, Vinnytsia region), Kliningspor (Velyki Mosty, Lviv region), and Oriflame Ukraine (Kyiv).

The AEO status was also granted to Popilnyansky Feed Mill (Kyiv), Tarkett Vinisin (Kalush, Ivano-Frankivsk region), and Agrosem (Kyiv).

The State Customs Service clarified that 28 applications for AEO authorization are currently under consideration. The agency believes that this figure indicates a consistently high interest of Ukrainian business entities in obtaining the relevant status.

In addition, the agency reminded companies planning to apply for AEO authorization or for the application of simplifications, transit simplifications, of the need to conduct a thorough self-assessment and fill out the relevant questionnaire, as this approach will allow companies to successfully pass the assessment of compliance with the criteria and/or conditions for granting authorization and, in particular, reduce the time for obtaining it.

“For its part, the State Customs Service, together with the Ministry of Finance, is developing initiatives that will expand the list of opportunities and benefits for businesses that have AEO authorization,” the service summarized.

As reported, the provisions of the Customs Code of Ukraine regarding the possibility of customs clearance of goods without presenting them to the customs authorities will cease to be effective on November 7, 2023. In order to continue to use the possibility of clearing goods at the facilities of enterprises, the State Customs Service recommended that businesses obtain the status of an authorized economic operator.

Having AEO authorization will allow the company to take advantage of all the benefits of AEO and facilitate access to the simplifications provided for by the Customs Code and the Convention on the Common Transit Procedure. In particular, the simplifications include reducing the level of risk in relation to the goods being transported, prioritizing customs formalities and releasing goods at the company’s location. Earlier, roundtables were devoted to customs reform, where the event’s organizer and moderator Maksim Urakin stated that the State Customs Service provides 35-40% of state budget revenues, and these figures have remained stable in recent years. That is why customs reforms are so important for the country.

,