21 Apr 2022 15:49

Ukrainian Rada deputy proposes repealing simplified customs clearance procedure for humanitarian aid

KYIV. April 21 (Interfax-Ukraine) - Ukraine should consider repealing a simplified customs clearance procedure for humanitarian aid coming to the country, as it damages domestic producers, Danylo Hetmantsev, head of the Ukrainian Verkhovna Rada Finance, Tax, and Customs Policy Committee, said in an interview.

"I have some doubts as to how reasonable it is to grant benefits to goods imported to the Ukrainian customs territory. I believe we should repeal this decision, as it hits our manufacturers," Hetmantsev said in an interview published in Ekonomichna Pravda (Economic Truth).

Hetmantsev admitted that the decision played a positive role at some point, as it facilitated the bringing of some essential goods to Ukraine to avoid their shortage.

"However, it should be repealed now, as its harm outweighs its benefits. We also had the decision exempting [entities] from paying excises and value added tax. I also view this as a mistake. We should not have deprived the state of very large revenues," he said.

Ukrainians have had over 10,000 cars cleared without paying customs duties, he said.

As reported earlier, Ukraine introduced a simplified customs clearance procedure for humanitarian aid on March 1, 2022 and then announced other adjustments further easing it.

In addition, legislation on eased imports that took effect on April 6, 2022 exempted goods imported to Ukraine from import duties and VAT for grade 1 to 3 unified tax payers who pay a 2% sales tax. Ukraine has also simplified the customs clearance procedures themselves.