The Cabinet of Ministers of Ukraine has adopted changes that will facilitate the application of approaches to the classification of goods identical to the EU. On June 24, the Government adopted resolution ‘On Amendments to the Procedure for Conducting the Ukrainian Classification of Goods of Foreign Economic Activities’, the draft of which was developed by the Ministry of Finance to ensure the implementation of the provisions of EU legal acts into Ukrainian legislation in terms of taking into account approaches to the classification of individual goods according to the Combined Nomenclature of the EU.
This will contribute to the uniform application of the rules of classification of goods by all customs authorities when making decisions on the classification of goods in accordance with the UKT FEA and decisions on binding information on the issues of classification of goods.
Also, this resolution instructs the State Customs Service to ensure:
- publication of the list of valid decisions on the classification of goods according to the Combined Nomenclature of the EU, provided for in the relevant acts of EU law on the date of adoption of this resolution, provided that such decisions do not contradict the provisions of the International Convention on the Harmonized System of Description and Coding of Goods, and to update it at least once a quarter;
- preparation and publication of information on the conformity of the product codes specified in the relevant acts of EU law with the codes of the current version of the product nomenclature of the UKT FEA;
- finalization of the corresponding software.
The National Bank of Ukraine has prohibited banks from refusing to accept worn banknotes. This is provided for by changes to the Instruction on the procedure for organizing cash register work by banks and conducting payment transactions by payment service providers in Ukraine, approved by Resolution of the Board of the National Bank of Ukraine No. 103 of September 25, 2018 (as amended).
In order to resolve misunderstandings during currency exchange operations (i.e. currency exchange) and to minimize the impact of the human factor when determining the degree of wear and tear of foreign currency, the National Bank implemented a set of measures aimed at resolving the situation.
1. Amendments to the regulatory framework have been approved, which cancel the list of signs of minor wear of banknotes
Currency exchange operations must be carried out with all foreign currency banknotes without exception, except for significantly worn or damaged ones.
Banknotes that have signs of significant wear (list of signs is provided in the reference information) should be subject to collection operations at the rates of banks and non-banking financial institutions. Banks and non-banking institutions that conduct such operations must place a clear list of signs of significant wear of banknotes and collection rates at the cash desk in a place accessible to customers.
2. Banks and non-banking institutions, when conducting currency exchange operations, are prohibited from setting restrictions on the denomination and year of issue of foreign currency banknotes that are legal tender on the territory of the relevant foreign state.
3. In the event of violations of the legal requirements of the National Bank, set forth in the appeals of consumers of financial services, enhanced control has been introduced and appropriate measures of influence will be taken (including the suspension of the possibility of carrying out certain types of currency transactions).
In particular, the National Bank, depending on the level of the offense committed, in compliance with the principle of adequacy, will apply measures of influence that provide for the maximum amount of the fine:
- to banks – in the amount of up to UAH 400,000 and it is planned to increase it for significant violations;
- to non-banking financial institutions – in the amount of up to 5% of the institution’s equity capital.
Other changes are contained in Resolution of the Board of the National Bank of Ukraine No. 75 of June 20, 2023 ‘On Amendments to the Regulations on the Structure of the Foreign Exchange Market of Ukraine, Conditions and Procedures for Trading Foreign Currency and Bankable Metals on the Foreign Exchange Market of Ukraine’.
The Cabinet of Ministers of Ukraine by Resolution No. 618 of June 19, 2023 approved new samples of excise tax stamps for:
- domestic and imported alcoholic beverages;
- tobacco products, tobacco-containing products heated with the help of a heater with electronic control and liquids used in electronic cigarettes, of domestic and imported production.
Item 5 of the Regulation on the manufacture, storage, sale of excise tax stamps and labeling of alcoholic beverages, tobacco products and liquids used in electronic cigarettes, approved by Resolution of the Cabinet of Ministers No. 125 of December 27, 2010, has been updated with changes. It is established that the stamp:
- for alcoholic beverages, except for wine products (alcoholic beverages), domestically produced in a pink-lilac color scheme;
- for alcoholic beverages, which are wine products, of domestic production — turquoise-orange,
- for alcoholic beverages, except wine products (alcoholic beverages), imported production — blue-yellow,
- for alcoholic beverages, which are wine products, of imported production — green-yellow,
- for tobacco products of domestic production with and without a filter (cigarettes without filter, cigarettes) — pink,
- for tobacco products of domestic production (cigarillos) — orange-blue,
- for tobacco-containing products for electric heating using a heater with electronic control of domestic production — violet-blue,
- for other tobacco products of domestic production — lime-blue,
- for imported tobacco products with and without a filter (cigarettes without filter, cigarettes) — green-yellow,
- for imported tobacco products (cigarillos) — green-red,
- for other imported tobacco products — blue-green,
- for tobacco-containing products for electric heating using a heater with electronic control of imported production — green-yellow,
- for domestically produced liquids used in electronic cigarettes — blue-orange,
- for liquids used in electronic cigarettes of imported production — lime-green color scheme.
The changes state that a holographic protective element with a width of 5 millimeters, which contains a spectral label, is applied to excise tax stamps.
The State Tax Service, in particular, is entrusted with:
- ensuring the manufacture and sale of excise tax stamps of a new model for alcoholic beverages, tobacco products, tobacco-containing products for electric heating with the help of an electronically controlled heater and liquids used in electronic cigarettes, domestic and imported, from August 25, 2023 in the established order;
- from September 1, 2023, stopping the sale of excise tax stamps for marking alcoholic beverages, tobacco products and liquids used in electronic cigarettes, the samples of which were approved by Resolutions of the CMU No. 74 of February 12, 2020.
Resolution No. 618 will enter into force on July 1, 2023.
The National Bank of Ukraine eases currency restrictions for the purpose of business development, revitalization of business activity and attraction of resources for the reconstruction and restoration of Ukraine's economy.
Thus, by Resolution of the Board of the National Bank of Ukraine No. 77 of June 20, 2023 ‘On Amendments to the Resolution of the Board of the National Bank of Ukraine No. 18 of February 24, 2022’, from June 21, 2023, the NBU enables residents to make transfers abroad for service and return new external loans, the funds for which will be received from abroad after June 20, 2023, to the accounts of borrowers in Ukrainian banks.
Residents will be able to carry out relevant transactions while simultaneously observing a number of conditions:
- the transfer of funds abroad for the purpose of paying interest (taking into account commissions, fees and other payments for servicing external credits or loans) is carried out subject to the maximum interest rate of 12% per annum;
- the transfer of funds for the fulfillment of obligations under a credit or loan, which are received for a period of no more than three years, is carried out by the borrower only at the expense of own funds in foreign currency (including those raised from non-residents in the form of loans or credits);
- if the terms of obtaining a credit or loan are longer than three years, then the transfer of funds to repay such a credit or loan during the first three years is also carried out by the borrower only at the expense of own funds in foreign currency (including those borrowed from non-residents in the form of loans or a loan). At the same time, the borrower can buy foreign currency to pay interest, commissions, fees and fines, and starting from the fourth year – to repay the credit or loan;
- funds transfer for early repayment of credits and loans is not allowed.
The conditions determined by the National Bank will make it possible to eliminate the risks of unproductive outflow of funds. As a result, the impact of such easing on international reserves and the foreign exchange market will be limited, instead, business will be able to attract new funds from external sources. In addition, it will contribute to expanding the opportunities of international partners to direct financing for the recovery of the Ukrainian economy.
The Cabinet of Ministers of Ukraine, by Resolution No. 614 of June 16, 2023, approved the new edition of the Rules for Household Services of the Population.
In addition, Resolution No. 614 cancels the requirement to keep a book of reviews and suggestions in the field of service provision. The rules on the exclusion of the specified document are included in:
- Rules for the provision of passenger road transport services, approved by Resolution No. 176 of the Cabinet of Ministers of February 18, 1997;
- Procedure for providing services for temporary accommodation approved by Resolution of the CMU No. 297 of March 15, 2006;
- Licensing conditions for conducting tour operator activities, approved by Resolution of the CMU No. 991 of November 11, 2015;
- Licensing conditions for carrying out business activities of mediation in employment abroad, approved by Resolution of the CMU No. 1060 of December 16, 2015.
The Rules stipulate that customer service is provided in the state language in accordance with the Law of Ukraine ‘On Ensuring the Functioning of the Ukrainian Language as the State Language’. At the consumers’ requests, there personal service can also be provided in another language acceptable to the parties.
The Cabinet of Ministers of Ukraine has approved the Procedure for supervision in the field of prevention and counteractions to legalization (laundering) of proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction over the activities of the subjects of primary financial monitoring, state regulation and supervision of the activities of which are carried out by the Ministry of Finance, Ministry of Justice, Ministry of Digital Transformation.
The Procedure provides for:
- procedures for organizing, preparing and conducting scheduled/unscheduled, including on-site audits; execution of audit results;
- rights and responsibilities of the officials of the state financial monitoring entity who conduct the audit, the rights and responsibilities of the subjects of primary monitoring officials during the audit are defined.
