Support in Obtaining Permits for Foreign Economic Activity

The main legislative act regulating foreign economic activity in our country is the Law of Ukraine “On Foreign Economic Activity”. Under the Law of Ukraine “On Licensing Certain Types of Economic Activities” (paragraph 25 of Article 7), it is established that the licensing of foreign economic activity is included among the types of business activity subject to licensing.

Therefore, before carrying out foreign economic activity (FEA), it is important to ascertain whether a particular operation (export or import of certain goods, a transaction) is subject to licensing or quotas in accordance with the requirements of the Law of Ukraine “On Foreign Economic Activity”.

Licensing of FEA is defined as a set of administrative measures by the Ministry of Economy of Ukraine (the Ministry of Economy) to grant a foreign economic entity permission to export (import) goods.

Quota setting, generally, refers to restrictions (quantitative or otherwise) imposed by state bodies, in line with national legislation and international treaties, on the production of goods, export-import deliveries, etc.

Introducing licensing procedures for foreign economic operations and establishing quotas can be employed as reciprocal measures in response to discriminatory and/or unfriendly actions by other states, customs unions, or economic groupings.

Moreover, according to Ukrainian legislation, each year a corresponding Resolution of the Cabinet of Ministers of Ukraine, based on the Ministry of Economy’s proposal, determines a list of goods whose export and import are subject to licensing, and also sets quotas for importing or exporting the relevant goods. Typically, export licensing requirements apply to goods of significant importance to life in Ukraine (agricultural products, food products, essential consumer goods, and so on).

As a general rule, to carry out foreign economic operations involving the export of goods abroad (for example, to EU countries), one needs to have a foreign economic contract and a set of supporting documents for the goods, depending on the type of goods being exported (see Support for Export Operations to European Union Countries). Among these documents, for instance, is a certificate of origin.

The most common forms of certificates of origin include:

• General Certificate of Origin, which is issued for all goods of Ukrainian origin in accordance with Ukraine’s national legislation when exporting to countries not bound by rules for determining the country of origin, and is also issued when the goods do not have preferential access to the importing country’s market or in cases when privileges for Ukrainian goods are absent or temporarily suspended.

The tasks of determining the country of origin of goods/services, as well as preparing and certifying certificates of origin for goods/services, are performed by the Ukrainian Chamber of Commerce and Industry and its regional branches in accordance with the Law of Ukraine “On Chambers of Commerce and Industry in Ukraine”.

• Movement/Origin Certificate EUR.1, which is issued for preferential access to the EU market within the framework of free trade agreements with the EU, Montenegro, and EFTA.

Such a document is provided when it needs to be presented upon entry into the customs territory of EU and EFTA member states and Montenegro as proof that the Ukrainian-origin goods fulfill the requirements of preferential origin rules for applying preferential import duty rates. The certificate is issued upon the written request of the exporter or its authorized representative by an official of the State Fiscal Service’s customs office while exporting the goods at the location of their customs clearance, or after the goods’ export at the location of their customs clearance, or at the exporter’s place of state registration. The procedures for issuance are regulated by the Order of the Ministry of Finance of Ukraine No. 139 dated March 2, 2021, “On Approving the Procedure for Completion and Issuance by Customs of the Certificate of Movement (Origin) of Goods EUR.1 or EUR-MED”.

Hence, to engage in foreign economic activity involving the import/export of goods, one must pay close attention to all details, in particular, obtaining the permits that accompany the relevant goods, since this determines successful customs clearance and the successful conduct of foreign economic activity by the respective foreign economic entity.

The specialists of the “First Legal” Law Firm are happy to assist residents and/or non-residents in resolving any issues related to foreign economic activity, including obtaining licenses and other permits.