The saturated market of Ukraine and its geographical location make our country an attractive market for foreign goods. However, importing goods to Ukraine is a complex process that requires knowledge of legislation, international relations, and customs clearance procedures. These and other issues were discussed by the founder of the Club of Experts Maxim Urakin and the President of the Ukrainian Exporters Club Yevheniia Lytvynova in a new video on the YouTube channel “Club of Experts”.
According to Maksym Urakin, before starting to import goods, it is necessary to conduct a detailed analysis of the market and legislation of Ukraine and the exporting country, as well as calculate all costs associated with delivery, customs clearance and taxes.
“This will help you draw up a clear action plan and avoid unpleasant situations during the import process,” the expert emphasized.
Yevheniia Lytvynova, President of the Ukrainian Exporters Club, also emphasizes the need to research the market and check the reputation of potential suppliers.
“Market research and checking the reputation of potential partners can help you find a reliable supplier,” she said.
According to Yevheniia Lytvynova, successful import of goods requires a thorough analysis of all aspects of the importer’s future business strategy.
“Before you start importing goods, you need to conduct a detailed analysis of the market, legal requirements and your capabilities, as well as calculate all the costs associated with delivery, customs clearance and taxes. This will help you draw up a clear plan of action and avoid unpleasant situations during the import process,” emphasized Lytvynova.
Regarding the documents to be prepared for importing goods, Lytvynova noted that the contract between the importer and exporter, invoice, transportation document (e.g., waybill or bill of lading), quality certificate and certificate of origin should be put in the forefront.
“In addition to these basic documents, additional documents may be required depending on the characteristics of the goods and the requirements of Ukrainian legislation. In particular, licenses, certificates of conformity, permits and other documents confirming compliance with safety, hygiene, environmental requirements, etc. may be required,” she explained.
Maksym Urakin also emphasized that studying local legislation and choosing a reliable supplier are also very important steps in the import process. According to the experts, in order to successfully sell goods in Ukraine, it is also necessary to take into account the difficulties that may arise after their delivery.
“Even if the goods are of high quality and interesting, they still need to be sold. But here in Ukraine, even after obtaining certificates and relevant permits, sales can be restricted due to various customs barriers, which leads to breach of contract. Therefore, we advise our companies to conduct a detailed analysis of the market and legal requirements. This will allow them to prepare the right documentation and comply with all requirements,” said Yevgeniya Lytvynova.
To increase export sales, experts recommend improving product quality and providing buyers with more information about their goods.
“Nowadays, many buyers check the quality of goods and their compliance with standards. If your products don’t meet the requirements, they simply won’t buy them,” emphasized Maksym Urakin.
In this regard, experts advise to focus on developing the quality of goods and their competitiveness. In addition, according to Maxim Urakin, it is important to participate in international exhibitions and forums where you can find new partners and establish contacts with potential suppliers.
Thus, according to the experts, it is very important to comply with all the requirements and norms set by law when importing goods, conduct a detailed market analysis and check the reputation of suppliers. It is also important to ensure the quality of goods and timely delivery, while considering all possible risks and costs. Importing goods can be a very profitable business if you organize it properly. Experienced experts advise to study the market and determine your capabilities to avoid unpleasant situations and ensure successful business development.
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Port of Reni for the first time since the independence of Ukraine has attracted a new cargo flow – citrus fruits from Egypt, which in peacetime went through the larger ports of “Big Odessa”, the Administration of Sea Ports of Ukraine (AMPU) reported on Facebook.
“Last week a refrigerated vessel “ZEINAB”, equipped with enhanced ventilation and refrigeration units for the transportation of perishable goods, arrived at the port of Reni,” AMPU said in a statement.
In particular, 519.9 tons of fruit were delivered from Egypt: 150.3 tons of oranges, 169.4 tons of pomegranates, 31.05 tons of lemons and 169 tons of tangerines.
AMPU specified that citrus fruits were traditionally transshipped by Chornomorsk and Odessa ports.
The leader among them was the port “Chernomorsk”, which transshipped 253 thousand tons of citrus in the last five years: in 2018 – 83.6 thousand tons, in 2019 – 74.1 thousand tons, in 2020 – 43 thousand tons, in 2021 – 35.5 thousand tons and in 2022 – 16.8 thousand tons.
Port “Odessa” during the same period transshipped 134.2 thousand tons of citrus: in 2018 – 45.4 thousand tons, in 2019 – 40.4 thousand tons, in 2020 – 26.5 thousand tons, in 2021 – 14.3 thousand tons and in 2022 – 7.6 thousand tons.
AMPU reminded that now the ports of Greater Odessa work only within the framework of the “grain initiative”, so the cargo owners are forced to seek other ways to deliver citrus to consumers.
Earlier analytical project “Club of Experts” analyzed in detail the trade and economic cooperation between Ukraine and Egypt, see in detail in the video:
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In the next video YouTube-channel of the analytical center “Club of experts” the prospects of trade and economic relations between Ukraine and Egypt were considered.
As the founder of the Club of Experts Maxim Urakin emphasized, before the war Egypt was the most favorable trade partner for Ukraine, the trade surplus with which amounted to almost 2 billion U.S. dollars. Grain and metallurgical products were the main Ukrainian goods at the Egyptian market.
At the same time, in the first months of the war, the Russian blockade of maritime communications in the Black Sea limited Ukrainian exports to Africa and, above all, to Egypt. The grain agreement improved the situation, but only with regard to agricultural exports. In order not to lose the Egyptian market, the Ukrainian companies have to adapt to the current situation now in order not to make additional efforts after the war.
According to the President of the Ukrainian Exporters Club Eugenia Litvinova, the Ukrainian producers should pay attention to the Egyptian market of dairy products in the first place. In this case, it is necessary to take into account the separation of Egyptian groups of goods for wholesale and retail trade while creating favorable conditions for imports. Also, according to her, the demand in Egypt is for canned and dried fruits, confectionery, chocolate, oils, fats, mineral water, as well as crockery, various cutlery, baths, showers, sinks, building materials and other goods for the retail trade.
“I want to draw attention to the fact that all Ukrainian exporters who want to trade with Egypt, must be registered in the general administration to control exports and imports. After that it is possible to establish logistics through rail and road ways, taking into account the temporary inaccessibility of the port of Odessa”, – she explained.
Besides, Yevgeniya Litvinova noticed that since March of the last year, Egypt obliged Ukraine to use the letter of credit for many groups of goods that leads to rise in price of transactions from 0,2 to 0,5%. This factor, according to the expert, will also directly affect trade and its final results.
“If we talk about advice to our small and medium-sized businesses when entering the Egyptian market, first you need to understand what exports are, if you have not previously been involved in this process. Then you should analyze in which cases it is profitable to open a Ukrainian enterprise in Egypt to work, and in which cases you do not always need to do it and not always profitable. Finally, the third tip – go through the registration. At least look at how to pass authorization, registration through a single window in Egypt. I draw your attention to the fact that your brand should be registered at least in Ukraine before you start to pass this registration in Egypt, “- summed up Eugenia.
In turn, the head of the Egyptian diaspora in Ukraine, Dr. Atia Walid noticed that in recent years Egyptian-Ukrainian trade relations have been intensively developed and our country has been invited to participate in major infrastructure projects, which are now being implemented by the Egyptian authorities.
“Back in 2021 Egypt discussed with the Ukrainian government investment in the special economic zone of the Suez Canal. That is, the Egyptian economic policy is primarily aimed at encouraging investment in the country’s economy. Egypt, of course, is interested in cooperation with Ukrainian companies from the point of view of opening joint ventures on its territory, which can well be realized today, despite the war. I think it is quite realistic for Ukrainian companies to open branches there, if they are interested in the sales market. Egypt is ready to facilitate this,” stressed the representative of Egypt.
In his opinion, our suppliers should work more actively both with the Egyptian embassy in Kiev and the Ukrainian embassy in Cairo. This will facilitate the passage of bureaucratic procedures and reduce the likelihood of becoming victims of fraud.
“Ukrainian businessmen should check with the Egyptian embassy or the Chamber of Commerce the authenticity of the documents of those organizations with which they cooperate. And only after that, conclude a contract according to all international rules. You should not believe the promises and pretty eyes, and do not forget the basics of doing business in the field of export-import. I wish all businessmen in Egypt and in Ukraine only success,” said Dr. Atia Walid.
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The Club of Experts YouTube channel has released a new video dedicated to the prospects for the development of the volunteer movement in Ukraine after the start of the war and solving the main problems that our citizens may face when bringing humanitarian aid to Ukraine.
According to Maxim Urakin, the founder of the Club of Experts, the humanitarian situation that arose in Ukraine after the outbreak of hostilities forced tens of thousands of people to volunteer.
“At the same time, many people faced with the incomprehensibility of the processes of crossing the border and importing certain goods into the country,” the expert emphasized.
In his commentary, the head of the International Technology Transfer Association (ITTA), Artem Goncharenko, noted that when organizing volunteer assistance, one should understand what needs the recipients of volunteer assistance have. At the same time, in his opinion, individual and general requests of both military and ordinary citizens should be distributed.
“It is important to understand that we cannot offer a single universal solution. Need a personal approach (…). At the same time, different volunteer organizations should unite to improve the coordination of work,” he said.
In turn, Evgenia Litvinova, Chair of the Ukrainian Exporters’ Club, analyzed the latest legislative changes that have greatly simplified the delivery of international humanitarian aid to Ukraine.
In their presentation, the experts provided a detailed explanation on the following problematic issues:
– Who has the right to bring humanitarian aid to Ukraine?
– On the basis of what documents can humanitarian aid be imported?
– What changes have been introduced when filling out customs declarations?
– What shipping documents do you need to have when crossing the border?
For more details, see the video on the YouTube channel “Expert Club” at the link:
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Ukraine’s accession to the European Convention on a Common Transit Procedure is expected at the end of the second quarter of 2022, already in the third quarter Ukrainian enterprises will be able to go in transit through 35 countries on the principle of one vehicle – one transit declaration – one guarantor’s undertaking, Director of the Department for the Implementation of the International Transit System of the State Customs Service Serhiy Demchenko has said.
During a roundtable entitled “Implementation of customs procedures in accordance with EU practice: what changes may Ukrainian business expect? Practical aspects” held at Interfax-Ukraine, he said that these are all EU countries, the European Free Trade Association (EFTA) countries, Turkey, Serbia, North Macedonia and the U.K.
The expert recalled that joining the Convention is stipulated by the Ukraine-EU Association Agreement and shall intensify international trade due to the establishment of joint transit procedures by Ukraine with the countries-members of the Convention and their use of a single technology – the New Computerised Transit System (NCTS) system. This system allows the member countries to exchange customs data in real time and monitor goods at every stage of transportation.
“The common transit system provides for four main special transit simplifications for enterprises: the authorized consignor, the authorized consignee, special sealing and a guarantee,” Demchenko said. He added that new approaches are being applied to the standard guarantee amount, which will reduce the amount when it is used by 50%, 70% or 100%.
To obtain simplifications in NCTS, the legislation provides for a special procedure. The guarantee can be provided by companies that have received the financial guarantor status. To submit a transit declaration to NCTS, a company needs to register on the Trader’s Portal in the “personal account” on the “Single Window for International Trade” portal.
“Ukrainian legislation on common transit has already been generally shaped and is in line with the best European practices,” International Key Expert on Customs reform of the EU4PFM Programme to improve Public Financial Management (PFM) in Ukraine, former Deputy Chairman of the Lithuanian Customs Service Vytenis Ališauskas said during the roundtable.
To date, more than 3,000 customs officials are registered in the system, more than 180 companies have access to the Trader’s Portal, about 300 T1UA declarations have been submitted, three companies have received the financial guarantor status, and the Helpdesk operates.
As reported, NCTS is still used in Ukraine on a national scale. However, as a representative of the State Customs Service said, “enterprises that use NCTS (have submitted 50 or more declarations) can submit documents to the State Customs Service for simplifications, which will be valid even after Ukraine joins the Convention, that is, with the international application of the system.”
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Ukraine is carrying out customs reform, one of the directions of which is the introduction of principles and instruments used in the EU countries. The EU, in turn, assists Ukraine in the development and implementation of such customs instruments. This was emphasized by the participants in the round table “Implementation of customs procedures in accordance with European practice: what changes should Ukrainian business expect? Practical aspects,” which took place at the press center of the Interfax-Ukraine news agency on September 21, 2021.
The event was attended by President of the Exporters’ Club of Ukraine Yevhenia Litvinova, President of the Ukrainian Chamber of Commerce and Industry Hennadiy Chizhikov, representatives of business associations, Director of the Customs Policy Department of the Finance Ministry of Ukraine Oleksandr Moskalenko, Director of the International Transit System Implementation Department of the State Customs Service of Ukraine Serhiy Demchenko, Director of the Department for Customs Audit and Registration of Persons of the State Customs Service Svitlana Anischenko, Head of the AEO Support Department of the Customs Control and Customs Clearance Organization Department of the State Customs Service Andriy Teply, the EU4PFM international expert on customs issues, ex-deputy head of customs of the Republic of Lithuania Vytenis Alisauskas.
Organizer and moderator of the round table Maksim Urakin noted that now the State Customs Service provides 35-40% of revenues to the state budget, and these figures have remained stable over the past years.
“In general, in January-August 2021, the State Customs Service fulfilled the revenue plan by 107% and transferred UAH 291 billion to the state budget (against the planned figure of UAH 272 billion). At the same time, in the eight months of this year, compared to the same period last year, receipts from customs payments increased by UAH 76 billion, or 36%,” Urakin emphasized.
In addition, the organizer noted that, based on the monitoring of data of Ukraine’s foreign economic activity in 2021, conducted by the Experts Club analytical center, the state budget revenues will continue to grow, as the country continues to increase the volume of international trade.
“Thus, exports to the EU countries in the first half of 2021 grew by 43.9% compared to the same period last year, imports – by 26.3%. The total volume of trade with the EU countries for the six months amounted to almost $ 25 billion, with China – about $ 9 billion. These data indicate that the stimulation of foreign trade through the harmonization of customs legislation is a key factor in the financial stability of the state, ensures budget replenishment and economic growth,” the speaker said.
The speakers provided an overview of the principles laid down in the EU Customs Code and the instruments used by EU countries to implement these principles; what of them should be expected in Ukraine (including thanks to the support of European partners), and which of these customs instruments are already being introduced or are close to being introduced in Ukraine – in particular, the common transit regime (NCTS), the Authorized Economic Operator Program (AEO) and customs audit.
Of particular interest to business representatives was the system of customs simplifications, which is used in the EU countries and is now being implemented in Ukraine – in particular, as part of implementation of the Association Agreement between Ukraine and the EU.
Yevhenia Litvinova, the President of the Exporters Club of Ukraine, in turn, emphasized that it is important for business to know what changes await us.
“Do opportunities or additional costs await us? The round table will give an impetus to better understand the expected changes, to prepare for them, so that our exports after 2022 are painless, efficient and active,” she stressed.
“We want everything to be good at once, but the customs reform is not an easy process. But what we see now gives a large share of positive. And above all, we are moving towards the EU, including mentally,” Hennadiy Chizhikov, the President of the Ukrainian Chamber of Commerce and Industry, said.
According to Vytenis Alisauskas, the EU4PFM international expert on customs issues, the ex-deputy head of the customs of the Republic of Lithuania, the changes to the EU Customs Code fixed the new mission of the European customs. If earlier the customs had to protect the local market and collect customs duties, now it is becoming part of the international trade chain. And the competitiveness of local exporters depends on how it works.
The international expert focused on the tasks that must be solved with the help of the EU Customs Code – so that it would be profitable for an entrepreneur to be honest, so that a conscientious business could save his time and money, so that some of the processes that are (as a rule) performed at customs could be carried out by such a business on its own.
“An authorized economic operator (AEO) is a symbol of a conscientious entrepreneur who is trusted by customs and who has significant advantages in customs clearance,” he said.
Alisauskas highlighted the key tools used by European customs to save time for fair business – in addition to the simplification system (the AEO program and simplification in the general transit regime), this is a customs audit system (post-audit) and a customs risk management system.
International partners help create and implement these principles and tools in Ukraine.
Oleksandr Moskalenko, the Director of the Customs Policy Department of the Finance Ministry of Ukraine, stressed that the country is now working in the vector defined by the Constitution – European integration. Europe is our largest trading partner, and therefore, it is important to approximate, introduce the best European practices – so that European and Ukrainian customs work according to the same rules.
“We have completed a large layer of legislative changes. Now both the customs and the business must deploy all this. We need training, enlightenment, promotion. Therefore, I would like international partners to help us also conduct business training. So that all participants in the process not only have the rights, but also know how to use them,” he said.
In his opinion, the acceleration of customs clearance should be achieved not at the expense of a command to customs officers to “work quickly,” but at the expense of an efficiently built system.
“We are moving towards building partnerships between business and customs. It will take some time,” he concluded.
Serhiy Demchenko, the Director of the Department for the Implementation of the International Transit System of the State Customs Service, said that in the second quarter of 2022 Ukraine is expected to join the Convention on the Common Transit Procedure, and already in the third quarter of 2022 – the stage of Ukraine’s international application of the NCTS system.
“In a year, Ukrainian enterprises will be able to transit with 35 countries (including all EU countries, EFTA, Turkey, Great Britain) on the principle of “one vehicle – one transit declaration, one financial guarantee”,” Demchenko said.
He also informed about the main four special transit simplifications that the general transit system provides: an authorized consignor, an authorized consignee, self-sealing of a special type, a common financial guarantee. Regarding the guarantee, the Customs Service representative emphasized that new approaches are being applied that make it possible to reduce the amount of security for the base amount of the guarantee when it is used – by 50%, 70%, or 100%.
“As you know, now NCTS is used on a national scale, however, enterprises using this system (having issued 50 declarations or more) can apply for simplifications, which will also be valid for the international application of the system. Currently, the system has registered more than 3,000 officials of customs authorities, more than 180 companies gained access to the Trader Portal, about 300 T1UA declarations were submitted, three companies received the status of a financial guarantor, Helpdesk works, seven seminars were held with subjects of foreign economic activity,” the expert summed up.
According to Andriy Teply, the head of the AEO support department of Customs Control and Customs Clearance Organization at the State Customs Service, the full implementation of the functioning of the Authorized Economic Operator (AEO) Program is a priority of the State Customs Service for the next 2-3 years. Among the main challenges, he named the transformation of customs-business relations: such relations today are built on the distrust of business in customs, but should be open and partnership.
As you know, the Authorized Economic Operator Program has been operating in Ukraine since August 2020. Its implementation is stipulated by the Association Agreement between Ukraine and the EU. It provides a number of simplifications and advantages in customs clearance. To obtain the status, it is necessary to go through a rather difficult and lengthy authorization procedure.
“As of September 2021, the State Customs Service received five applications for authorization of the AEO. Of these, one enterprise was granted authorization as the AEO, two were denied an assessment, while two applications are under preliminary consideration,” the expert said.
Svitlana Anischenko, the Director of the Department for Customs Audit and Personnel Registration of the State Customs Service, stressed that customs audit in Europe is more focused on foreign economic activity and acts as a system that allows speeding up the process of customs clearance.
“We feel the need to create a high-quality IT tool – with the support of European partners, the first version of the Customs Audit information system was created, in August-September it is tested by customs. A month ago, an agreement was reached with European partners to support the creation of the second version. Also, the development of a risk management system for the selection of enterprises for customs audit has begun,” she said.
The event record can be viewed here: https://www.youtube.com/watch?v=4VBpReShdr8.
The organizers of the event are the European Union Project EU4PFM “Public Finance Management Support Program in Ukraine,” the Ukrainian Chamber of Commerce and Industry, the Exporters’ Club of Ukraine, and the Interfax-Ukraine news agency.
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