On 21 March 2014 during summit with EU the political provisions of the Association Agreement between Ukraine and European Union has been signed (Preamble, Article 1, Paragraph I, II and VII).
On 23 April 2014, as a result of political arrangements, after publication in the Official Journal of European Union, the Regulation № 374/2014 of the European Parliament and of the Council on the reduction or elimination of customs duties on goods originated in Ukraine has come into force (autonomous preferential trade regime – APTR).
Elimination of duties would be full or partial depending on the sector of economy, in accordance with the Schedule of concessions set out in Annex 1A to the Association Agreement.
Starting from implementation of APTR, customs duties shall be reduced or eliminated in accordance with the Annex 1 to the Regulation № 374/2014 of the European Parliament and of the Council.
Access to tariff quotas shall be admitted for goods set out in Annexes II and III to the Regulation № 374/2014 of the European Parliament and of the Council; this should mean that certain goods originated from Ukraine shall be admitted to EU market in defined volumes without customs duties.
Entitlement to the preferential arrangement is conditional and subject to compliance with the rules of origin of products, compliance with the methods of administrative cooperation with EU with the view to prevent any risk of fraud.
The ground for the preferential arrangement shall be the certificate of origin EUR.1. The rules of origin for products and procedures related thereto shall be set forth with the relevant Commission Regulation. The certificates of origin EUR.1 shall be issued by Ukrainian Chamber of Commerce (Ukrajinska torhivelno promyslova palata) or its regional branches during the whole period of preferential arrangements.
APTR should be implemented for the period up to 1 November 2014. The Parties concludes that after 1 November 2014, when all remaining articles of the Association Agreement between Ukraine and European Union would be signed, and all necessary procedures would be completed, the provisions of the Association Agreement between Ukraine and European Union would come into force.
The measures shall impact: (i) industrial products – tariffs will be removed to 94,7% of products, for the remaining part tariffs will be reduced; (ii) agricultural products – preferences will be given to 82,2% of products, for the remaining part a duty free tariff rate quota will be granted; (iii) processed products – immediate preferences will be granted to 83,4% of exported products, for the remaining portion – a duty free tariff rate quotas will be granted.
For further information please contact Asters'
partner Iryna Pokanay and counsel Tetiana Gryn.