Basic information
Outline of the system
Special licensing system using quotas for imported goods is established by the Law of Ukraine No. 332-XIV "On the application of special measures regarding imports to Ukraine" of 22 December 1998 (as amended) and the Law of Ukraine No. 959 XII "On foreign economic activity" of 16 April 1991 (as amended). Quantitative restrictions on imports are applied to goods with respect to which Interdepartmental Commission on International Trade (further – Commission) has adopted a decision to apply safeguard measures. Importation of goods specified by a decision of the Commission is carried out on the basis of special licenses.
Product coverage
Special licensing system using quotas for imported goods (established under separate decisions of the Commission) covers the licensing of imports of sulfuric acid and oleum (UKTZED code 2807.00.00.00).
Information on Decision of the Commission No. SP-391/2018/4411-05 on application of safeguard measures on imports into Ukraine of sulfuric acid and oleum regardless of country of origin and export has also been notified to the WTO by documents G/SG/N/8/UKR/6; G/SG/N/10/UKR/6; G/SG/N/11/UKR/4; G/SG/N/8/UKR/6/Suppl.1; G/SG/N/10/UKR/6/Suppl.1; G/SG/N/11/UKR/4/Supp.1; G/SG/N/8/UKR/6/Suppl.2; G/SG/N/10/UKR/6/Suppl.2; G/SG/N/8/UKR/6/Suppl.3; and G/SG/N/10/UKR/6/Suppl.3
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Non-Automatic licensing: special licensing system using quotas for imported goods
Products under restriction as to the quantity or value of imports
The special licensing system is intended to restrict the quantity of imports of the determined goods. The purpose of licensing is to protect the interests of national producers of goods from growing imports of such goods.
Questions for products under restriction as to the quantity or value of imports
See Answers 6.1-6.11
The system applies to products originating from which country?
Special licensing system applies on import of the sulfuric acid and oleum regardless of country of origin and export.
Expected duration of licensing procedure
Valid until 31 August 2024
Legal requirements
Is the licensing statutorily required?
The system of special licensing is established by the Law of Ukraine No. 332-XIV "On the application of special measures regarding Imports to Ukraine" of 22 December 1998 and the Law of Ukraine No. 959-XII "On foreign economic activity" of 16 April 1991 with relevant changes and amendments as well as Order of the Ministry of Economy and European Integration of Ukraine No. 232 of 1 August 2002 "On procedures of licensing of import to Ukraine of goods subject to special measures"(as amended). The Order sets forth a procedure for consideration of applications for issuance of special licenses, a procedure for issuance of special licenses, special license form and procedure its completion, an application form for obtaining a special license and its completion. Quantitative restrictions of imports under special licensing system are established according to the Decisions of the Commission, in particular No. SP 391/2018/4411-05 of 2 July 2018 "On application of safeguard measures on imports into Ukraine of sulfuric acid and oleum regardless of country of origin and export", No. SP 500/2021/4411-03 of 27 August 2021 "On extension of safeguard measures on imports into Ukraine of sulfuric acid and oleum regardless of country of origin and export"
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The Decision of the Commission determines the products subject to licensing.
Is it possible for the government to abolish the system without legislative approval?
The special licensing system cannot be abolished without a legislative approval.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Legal entities or individual entrepreneurs are eligible to apply for special import licences.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Ministry of Economy of Ukraine, Department for Foreign Economic Activity and Trade Protection
Address
01008, Kyiv, Grushevskogo str., 12/2
Telephone
+380 (044) 200 4461
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Ministry of Economy of Ukraine, Department for Foreign Economic Activity and Trade Protection
Documentation requirements
What information is required in applications?
An application for a special license must contain the following information: full name of the importer, its location, phone, fax, EDRPOU Code (DRFO number), number of the current account in national currency, bank name, MFO, bank location, number of the current account in foreign currency, bank name, MFO, bank location, consumer/seller of the product and its location, commodity code under UKTZED, unit of measurement, quantity and value of the good, value (in the contract currency), additional name of the commodity, country of destination/seller, country of origin, basic conditions for delivery of the commodity imported by Incoterms, contract currency code, customs code, nature of the agreement, basis for requesting a special license, special conditions.
What documents is the importer required to supply with the application?
The following documents, along with the application, are submitted in order to obtain a special license:
- a request letter regarding the issue of a license, with guarantee of the payment of the official fee for the issue of such license;
- a copy of the contract, all annexes and specification thereto certified by the manager of the entity;
- a copy of state registration certificate certified by the manager of the entity;
- a copy of the certificate for attributing an identification number of a taxpayer;
- the original a certificate of origin of foreign goods issued by the authorized body of foreign country of export and its copy; and
- a certificate of goods examination issued by the Chamber of Commerce and Industry of Ukraine or its regional department, with determination of the code of goods.
The applicant, upon submission of the documents, is notified that it may be granted an import quota in the amount specified in application for the special license.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Not applicable.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Not applicable.
Issuing the license
Can a licence be granted immediately on request?
Not applicable.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Not applicable.
Which administrative body is responsible for approving application of licences?
Not applicable.
Must the applications be passed on to other organs for visa, note or approval?
Not applicable.
Are there any other conditions attached to the issue of a licence?
Other conditions accompanying issuance of licenses are:
- submission of a document verifying payment of the fee for a license; and
- submission of a power of attorney, or of a copy of a power of attorney authorizing receipt of a license, and submission of a document identifying the person receiving the license if the license is issued to the authorized representative of the entity.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Yes
What is the amount of the fee or charge?
A fee for licence is 780 UAH.
According to the Resolution of the Cabinet of Ministers of Ukraine No. 241 of 10 March 2022 "On amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 362 of 18 May 2005 'On setting the fee for issuing export (import) licences'" the fee for issuing a license for export (import) of goods is not charged until termination or cancellation of the martial law in Ukraine.
Is there any deposit or advance payment required associated with the issue of licences?
No deposit or an advance payment to be issued a special import license.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
A special license application is accepted in all cases, unless the application is inconsistent with the terms of the contract and/or an improperly submitted application and/or an incomplete set of required documents is submitted.
Are the reasons for any refusal given to applicants?
The reason to refuse to issue a special license is also include exhaustion of quota. A decision to refuse to issue a license is be provided to the applicant in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
A decision to refuse the issue of a license may be appealed to the district administrative court in conformity with provisions of the Code of Administrative Proceedings of Ukraine.
If so, to what bodies and under what procedures?
A decision to refuse the issue of a license may be appealed to the district administrative court in conformity with provisions of the Code of Administrative Proceedings of Ukraine.
Importation
Are there any limitations as to the period of year during which importation may be made?
Not applicable.
What documents are required upon actual importation?
At the time of actual importation the following documents are required:
- special license original;
- certificate of origin of goods; and
- cargo (shipment) customs declaration.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Importers are to obtain the permission for the right to import (export) or for the right to transit of narcotic drugs, psychotropic substances and their precursors issued by the State Service of Ukraine on Medicines and Drugs Control
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
The period of validity of a special license is 90 days, except for cases of expiry of relevant quota period. If an entity under the granted special license fails to import the specified quantity of goods within the period specified in the license, based on the verification by the customs body of the actual volume of the import of these goods and their remaining quantity under the special license, the Ministry of Economy of Ukraine will issue a new license for the remaining goods. In such case the importer is required to complete an application for the new license for the remaining goods.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
No penalties are imposed for a failure to use a license or part of a license.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are not transferable between importers.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Is foreign exchange always available to cover licences issued?
What formalities must be fulfilled for obtaining the foreign exchange?
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
According to the special import licensing system, which envisages quota allocation, the lists of products are determined by the decisions of the Commission. The Commission's decisions regarding the application of special measures on imports of certain goods with allocation of aggregate level of quotas and allocation of quotas by countries of origin/export are published in the official publication "Uriadovyi Courier" and are available on the Internet sites of the Cabinet of Ministers of Ukraine https://www.kmu.gov.ua/ua and of the Ministry of Economy of Ukraine http://www.me.gov.ua.
The Ministry of Foreign Affairs of Ukraine notifies governmental bodies of exporting countries.
In case of allocation of quotas between the exporting countries, such allocation may be agreed with such countries. If no such agreement has been reached, the quotas will be allocated between the exporting countries depending on their shares of imports to Ukraine subject to special investigation during the previous representative period.
To prevent monopolization of the market the total number of applications from the same importer to obtain special licenses within the established quotas may not exceed 35 per cent of the volume of the quota period or such other period if envisaged by the relevant decision of the Commission.
Any exceptions or deviations from the requirements of special licensing are not allowed without amendments of legislative acts.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
The size of the special quota is determined for a quota period and may not exceed the amount specified by the relevant decision of the Commission. The quota period and allocation of quotas during the quota period shall be set by the relevant decision of the Commission. The total amount of import under special licenses may not exceed the established quota.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Licensing procedures apply to all importers of goods subject to special measures under the decisions of the Commission. In case if the special quota is not used fully in the quota period, it is allowed to carry over the remaining quota for the next quota period within 6 % of the quota size set for the quota period, unless otherwise is provided by applicable decision of the Commission. Information regarding holders of a special license may be provided upon request.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
The applications for import licenses are accepted starting from 14 days prior to the first day of the relevant quota period.
What are the minimum and maximum lengths of time for processing applications?
The term during which the license application may be considered is 15 business days. Applications are reviewed in order of their receipt.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
A special license shall be effective for importation of goods as of the date of its issuance.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The Ministry of Economy of Ukraine considers license applications. Applications shall not be submitted to other bodies for approval, commenting or endorsement. An importer does not have to apply to any other administrative bodies for approval of the application.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
If the demand for a license cannot be fully satisfied, a license is issued for a part of the demand, i.e., for amount of quota left. To prevent monopolization of the market the total number of applications from the same importer to obtain special licenses within the established quotas may not exceed 35% of the volume of the quota period or such other period if envisaged by the relevant decision of the Commission. All importers differ only by date of the submission of the application. Applications are considered in the order of their receipt. If at the time of submission of an application the set volumes for special quotas have been used up, such application shall not be accepted for consideration. The fact that special quota has been exhausted is notified in writing to the entity that has submitted the application.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Issue of special licenses does not depend on availability of bilateral quotas or arrangements. Special licenses are not issued automatically.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable.