Government backs draft of new Customs Code to be sent for EU Commission review and business consultations

Harmonising customs legislation is a key priority for Ukraine’s path to EU membership. The main task in the customs sphere is to finalise the development of a new Customs Code of Ukraine, in collaboration with businesses and experts, aligning it with the EU Customs Code, and submitting it to the Cabinet of Ministers for further approval by the Verkhovna Rada.

On 26 August, the Government adopted a protocol decision supporting the draft of the new Customs Code of Ukraine – a foundational document for Ukraine’s customs-related EU integration. The draft, based on EU customs legislation, was developed by the Ministry of Finance and the State Customs Service with support from EU technical assistance project experts.

The protocol decision instructs the Government Office for Coordination of European and Euro-Atlantic Integration to send the draft Customs Code to the European Commission for evaluation.

The Ministry of Finance has been tasked with:

• Establishing a working group of up to 15 public representatives to discuss the draft Customs Code. These may include members of public organisations, associations, or other groups that have worked on improving the business climate and protecting business rights in Ukraine over the past three years;
• Refining the draft Customs Code, based on the European Commission’s evaluation, in collaboration with the State Customs Service, the working group, and EU technical assistance experts.

Why is the new Customs Code a priority for Ukraine?

Harmonising customs legislation is a critical step towards Ukraine’s EU membership.

Expected outcomes:

• Synchronisation of customs procedures with those in the EU, significantly simplifying and accelerating trade with EU member states, reducing costs for businesses;
• Companies will be able to optimise production and logistics chains, as they will not need to account for differing customs procedures.

To date, Ukraine has achieved 91% implementation of its customs obligations under the EU Association Agreement. The European Commission, IMF, World Customs Organization, and businesses have noted progress in digitalisation, anti-corruption efforts, and increased customs revenues.