Stages of implementing Ukraine’s new Customs Code

The adoption by the Parliament of the draft new Customs Code of Ukraine at second reading will be just one of the steps required to meet Ukraine’s commitments on its path towards EU accession. At the same time, a substantial package of secondary legislation will need to be developed and adopted. Its scope will be several times larger than that of the Customs Code itself, which comprises 781 articles, as well as transitional and final provisions. Ukraine will also need to implement the IT systems required under EU legislation.

Overall, the process will consist of the following key stages:

1. Adoption by the Parliament of the new Customs Code of Ukraine, based on the EU Customs Code. Following its adoption, the European Commission will assess the Code’s compliance with EU legislation.
2. Development and adoption of the relevant secondary legislation based on EU regulations, enabling the provisions of the new Customs Code of Ukraine to be applied in practice. This will involve dozens of legal instruments at different levels, including resolutions of the Cabinet of Ministers of Ukraine, orders of the Ministry of Finance, and acts of the State Customs Service.
3. Development of new key IT systems, including the Customs Clearance System and the Risk Management System, in line with the new Customs Code of Ukraine. In accordance with the requirements of the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) concerning the development of digital customs systems needed to implement EU customs legislation, Ukraine will need to ensure that around 20 systems comply with EU requirements.
4. Commencement of the practical use of the key IT systems at the national level, followed by compliance testing and verification by DG TAXUD. The new electronic systems should be fully operational by the time the new Customs Code enters into force.

We would like to remind you that the Parliament adopted the draft new Customs Code of Ukraine at first reading. The draft law is currently being prepared for consideration at second reading.