Customs Platform Ukraine-EU 2022: Application of NCTS Strengthens the Security of Customs Transportation and Promotes the Development of International Trade

On October 5, the first Customs Platform: Ukraine-EU 2022 devoted to the launch of the Common Transit Procedure (NCTS) in Ukraine, European Integration and Security in the conditions of russian armed aggression in the Centre of Europe took place in Kyiv.

The event was dedicated to the launch of Customs Visa-Free regime – the entry into force of the Convention on the Common Transit Procedure (NCTS).

“It is important to realize that Ukraine, with the support of international partners, has accomplished an incredible feat in the shortest possible time: on August 25 of this year, Ukraine received an official invitation to join two Customs conventions and the international application of NCTS, which is already commonly named Customs Visa-Free. Already on October 1, Customs Visa-Free for Ukraine started to work: the first cargoes crossed the border of Ukraine in both directions according to the NCTS joint transit procedure,” emphasized the Minister of Finance of Ukraine, Sergii Marchenko, during the opening of the event.

During the first platform, the Minister of Finance of Ukraine highlighted the relevance of the Convention on the NCTS common transit procedure in the context of the development of international transportation and improving the security of crossing the state border under martial law.

“Challenges of the war, which is currently happening in the centre of Europe, united the European Commission and friendly countries to support the European integration processes of Ukraine, in particular, in the Customs area. In this situation, the application of NCTS expands the exchange of customs information, strengthens the risk analysis system, and ensures the recognition of our forms of customs control by the customs authorities of other countries. All this strengthens the security of customs transportation and promotes the development of international trade in Europe. Ukraine is making efforts to restore the economy, taking into account the vectors of changes in the world economy, so that Ukrainian business takes the rightful place in it,” Sergii Marchenko said.

“Never have the ties between Ukraine and the EU been closer than today. Step by step, Ukraine is moving further along the path that will lead to its accession to our Union. I want to congratulate Ukraine on its entry to the Common Transit Convention, which means that customs transit procedures with the EU are now much simpler and more efficient. I am confident that this will not only facilitate, but actually boost trade between the EU and Ukraine. We will work closely together with the Ukrainian authorities to ensure that this opportunity delivers maximum benefits in the coming months and years”, EU Commissioner for Economy Paolo Gentiloni mentioned.

Member of Parliament of Ukraine, Chairman of the Parliament of Ukraine Committee on Finance, Tax and Customs Policy Danylo Getmantsev spoke about the experience of synchronizing the work of the Parliament and the Government, and legislative support for Ukraine’s accession to customs conventions.

“The implementation of all provisions for joining the NCTS into Ukrainian legislation was carried out in recent months thanks to the coordinated and intensive work of all branches of the Government and international partners. I would like to remind you that we have been getting closer to Customs Visa-Free since 2016, but real steps have started since 2019. We have set ourselves an ambitious goal: in December 2024 – membership in the EU. And on this path, all our actions on the implementation of the EU legislation should take place at exactly the same pace and in exactly the same format as it happened with “customs visa-free”. This is a great example and a unique opportunity for businesses,” emphasized Danylo Getmantsev.

Summarizing the Customs Platform: Ukraine-EU 2022, the Deputy Minister of Finance of Ukraine for European Integration Yuriy Draganchuk emphasized on the priority of the customs direction in European integration processes, and also expressed his gratitude to international partners, in particular institutions, support projects, experts from the European Union and member states of the Conventions, international partners from other countries who help to transform Ukrainian customs to European standards.

“In the near future, the Ministry of Finance plans to complete bringing the customs legislation into compliance with the EU Customs Code in accordance with the Association Agreement. In the medium-term perspective, we plan to prepare the new Customs Code of Ukraine, which will be based entirely on the provisions of the EU Customs Code. We will also pay attention to the development of customs IT”, Yuriy Draganchuk said.

The Customs Platform was also attended by Deputy Head of the Representation of the EU in Ukraine Remy Duflot, Ambassador Extraordinary and Plenipotentiary of the Republic of Poland to Ukraine Bartosz Cihotski, customs attachés of embassies in Ukraine, Deputy Head of the State Customs Service Vladyslav Suvorov, experts of the EU4PFM and RST projects of the Ministry of Finance, representatives of businesses and business associations.

A separate panel was dedicated to the practice of using the common transit procedure (NCTS) – new experiences, business opportunities, perspectives, and recommendations. The participants emphasized the importance of Ukraine’s accession to the Customs Visa-Free program, and also had the opportunity to discuss in offline and online formats the issues of customs transformation and accession to international conventions under martial law and the prospect of Ukraine’s accession to the European Union.