Ukraine Introduces Tax and Customs Exemptions for the Import of Optical Fiber for Unmanned Systems
On 15 June 2025, two laws came into force, introducing amendments to the Customs Code and the Tax Code of Ukraine aimed at exempting from import duty and VAT the importation of optical fiber for security and defence purposes.
In particular, Law No. 4473-IX, dated 4 June 2025, provides that, until the termination or cancellation of martial law in Ukraine, the following items shall be exempt from import duty:
- optical fibers and fiber-optic bundles, as well as other fiber-optic cables intended for defence purposes, classified under subheadings 9001 10 90 10 and 9001 10 90 90 of the Ukrainian Classification of Goods for Foreign Economic Activity (UCGFEA);
- spools with fiber-optic cables and their components imported under the import regime and intended for the production or repair of aerial, ground, and maritime unmanned systems; means of countering technical reconnaissance; mechanized demining machines; remotely operated weapon systems; and ammunition; or for the supply to the Defence Forces of Ukraine.
Law No. 4474-IX dated 4 June 2025 stipulates that, temporarily, for the period of the anti-terrorist operation and/or the implementation of measures to ensure national security and defence, to repel and deter the armed aggression of the Russian Federation, and/or during the imposition of martial law in accordance with the law, transactions involving the importation into the customs territory of Ukraine and the supply within the customs territory of Ukraine of optical fibers and fiber-optic bundles, as well as other fiber-optic cables classified under subheadings 9001 10 90 10 and 9001 10 90 90 of the UCGFEA, shall be exempt from value-added tax.
These legislative changes are expected to improve the relevant provisions of Ukraine's tax and customs legislation governing the importation of goods necessary for the defence sector and reduce the cost of producing unmanned systems that use optical cables for control and video transmission, thereby strengthening Ukraine’s defence capabilities.
This is not the first time Ukraine has introduced tax and customs exemptions for defence-related goods. Similar measures have previously been applied, in particular, to unmanned aerial vehicles, thermal imaging and night vision equipment, armoured vehicles, communication systems, and components used for their production or repair. These steps are aimed at promoting domestic defence manufacturing and ensuring the prompt supply of critical equipment to the Defence Forces.
For further information, please contact Asters' Partner Yuna Potomkina and Counsel Anton Sintsov.
