Industrial visa-free regime: The Verkhovna Rada passes law on quality control of non-food products in online commerce

The state has taken an important step toward signing the ACAA Agreement (Industrial Visa-Free Regime). On April 8, the Verkhovna Rada of Ukraine passed in the second version a European integration law (Reg. No. 12426) that aligns the rules of state market surveillance and the technical regulation system with the requirements of European legislation.

The adopted law establishes uniform requirements for the sale of products sold both offline and online, reducing risks to consumers from the use of non-food products. This will promote fair competition in the market and enhance consumer safety.

“We are standardizing control over product safety and compliance with requirements for both offline and online sales. The adopted law closes loopholes that previously allowed products with inaccurate information or insufficient data about the seller to be sold online. This protects not only consumers but also honest businesses from unfair competition. It is also an important step toward signing the ACAA with the EU, or the ‘industrial visa-free regime,’ noted Oleksii Sobolev, Minister of Economy, Environment, and Agriculture of Ukraine.

What exactly does the adopted law change:

• extends market surveillance tools to online commerce and other forms of distance selling;
• expands the circle of responsible parties and their obligations. In addition to sellers, the requirements apply to marketplaces/online platforms and fulfillment companies;
• allows for the sampling of products using non-destructive testing methods, with the samples returned to the owner if non-conformity is not confirmed.
• introduces requirements for contact information of responsible entities on products. This simplifies inspections throughout the supply chain;
• introduces the requirement for a “responsible entity”—a resident of Ukraine—for certain types of high-risk products. The list of such products will be determined by the Cabinet of Ministers of Ukraine. The responsible entity may be a manufacturer, importer, authorized representative, or fulfillment operator—depending on the supply chain;
• updates controls on non-food products upon import. The law establishes procedures for interaction between customs and market surveillance authorities. It also defines measures based on risk;
• strengthens the powers of market surveillance authorities in cases of violations that could cause serious harm to the end user, particularly during online sales;
• introduces the development of a national market surveillance strategy based on the European approach.

Background information

The Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), or the so-called 'industrial visa-free regime,' is a future agreement between Ukraine and the EU. It provides for the mutual recognition of conformity assessment results (certificates) for industrial goods in the first three priority sectors: low-voltage electrical equipment, electromagnetic compatibility of equipment, and machinery.

The signing of the ACAA is a practical step toward integration into the European Union (in this regard, Ukraine will have both the rights and obligations of an EU member state).

Once the ACAA is concluded and enters into force, Ukrainian manufacturers will be free to export their products to the EU market without additional inspections. This will reduce the time and costs associated with conformity assessment and help eliminate technical barriers to trade.