Ukraine receives a "customs visa free". What does it mean?
Recently, Ukraine adopted laws for "customs visa-free" with the EU: "Convention on common transit procedure" and "Convention on simplification of formalities in trade in goods". The Joint Committee of Conventions invited Ukraine to join them from October 1.
What are the advantages Ukraine will receive from participation?
Participation in the Convention on the common transit procedure will allow the application of European transit rules. This will enable businesses to use a single customs declaration and a single guarantee for the movement of goods. Companies will be able to move goods from the EU to Ukraine (and vice versa) without additional re-registration for internal transit. As a result, faster movement of goods between the countries of the European region and cheaper movement of goods. Exporters, carriers, and importers will definitely benefit from such a decision.
One transit declaration and one guarantee for moving goods between 36 countries. Not only within the EU, but also with Great Britain, Turkey, Serbia, North Macedonia, Iceland, Norway, Liechtenstein and Switzerland. Ukrainian financial guarantees will operate in another 35 countries around the world. This is the main tool for quickly passing goods through customs while maintaining border security during wartime. It also necessary for building a convenient and transparent customs office in Ukraine. Less bureaucracy, less room for corruption and exchange of data with neighboring customs offices in real time. Progress in international customs policy is a mandatory condition for Ukraine's accession to the EU. And with the accession to international customs conventions and the adoption of the necessary legislative acts, Ukraine will fulfill 81% of its obligations under the Economic Part of the Association Agreement with the EU.
The Convention on the common transit procedure is based on the New Computerized Transit System (NCTS) technology. The NCTS links customs services in countries that are parties to the Convention, allowing the exchange of customs data. This is a system to which traders submit declarations for placing goods in the common transit regime in electronic form and which is used by States parties to the Convention to control common transit, increases the efficiency and security of the transit procedure.