The Cabinet of Ministers of Ukraine has made changes to the CMU Resolution dated 27.03.2013 No. 295 “On certain issues regarding the stay of goods in the customs regime of processing on the customs territory of Ukraine, restrictions and prohibitions on placing certain goods in the specified customs regime, and recognition of certain acts of the Cabinet of Ministers of Ukraine as invalid.” This is provided for by the new CMU Resolution dated 04.06.2024 No. 641.
According to the request of the Federation of Employers of Ukraine, the following items have been excluded from the list of goods prohibited from being placed in the customs regime of processing on the customs territory of Ukraine, as well as from the list of goods that cannot be allowed for processing for free circulation on the customs territory of Ukraine:
- New vehicles classified under tariff headings 8703, 8704 according to the Code HS..
- Bodies for motor vehicles classified under subheading 8707 10 90 90 according to the Code HS.
These bodies can be imported for the purpose of modernization, conversion, or production of vehicles and placed in the customs regime of processing on the customs territory of Ukraine by enterprises whose main activity is the production of motor vehicles (class 29.10, group 29.1, section 29 of the CTEA SC 009:2010).
What Does This Mean for Ukrainian Manufacturers?
These changes open up new opportunities for Ukrainian enterprises engaged in the production of motor vehicles. They will be able to more freely import the necessary components for modernization and production, which can lead to improved product quality and increased competitiveness in both domestic and international markets.
How Will This Affect the Economy?
The removal of restrictions will promote the development of the automotive industry in Ukraine. Enterprises will be able to reduce production costs, which can potentially lead to lower prices for end products for consumers. Additionally, this may stimulate foreign investment in the sector and create new jobs.
Conclusion
The changes to the CMU Resolution dated 27.03.2013 No. 295, provided for by the CMU Resolution dated 04.06.2024 No. 641, are an important step towards the development of the automotive industry in Ukraine. They provide more favorable conditions for manufacturers and contribute to the economic growth of the country.