Government restores operation of the list of goods with localization

The Cabinet of Ministers of Ukraine has unblocked the possibility of adding goods to the list of products with a confirmed degree of localization. Specifically, new rules for compiling the list have been adopted, requirements for goods updated, and regulations on the commission that will consider complaints approved.

"Public procurement is an opportunity to provide Ukrainian manufacturers with orders and stimulate investment in production. Our task is to create clear rules for confirming the Ukrainian component in goods purchased with public funds. This will help enterprises expand capacity, engage suppliers, and create jobs in Ukraine," said Vitalii Kindrativ, Deputy Minister of Economy and Environment of Ukraine.

The improved procedure for adding goods to the list provides for:

• A change in the approach to cost calculation. In accordance with the law, the share of the local component is now calculated in the production cost rather than the total cost. The manufacturer must also confirm that at least 4 technological operations from the list have been carried out.

• Manufacturers must submit a new document to track the movement of raw materials: an expanded turnover balance sheet for the last 12 months. The document must list all materials and components from the cost calculation, including the 5 cost components with the largest share (without indicating their value), and the primary accounting documents for them.

These innovations will make it possible to identify Ukrainian manufacturers more accurately and distinguish them from unscrupulous suppliers who pass off foreign goods as Ukrainian.

To consider complaints about the submission of false data and other localization issues, the Government will establish a standing Commission. It will include representatives of the Ministry of Economy and Environment, the state enterprise "Prozorro," and civic associations.

Goods can be submitted for inclusion in the list from the date the resolution takes effect on November 4. Manufacturers whose goods are already included in the register will have 30 days to resubmit their products under the new rules.

Localization in public procurement is one of the instruments of the "Made in Ukraine" policy to develop Ukrainian manufacturers. It is aimed at developing Ukrainian production, attracting investment in the real sector of the economy, and increasing non-commodity exports.