Export/Import Controls in Ukraine

Excerpted from the U.S. Department of Commerce - International Trade Administration

Export/Import Control Legal Basis

A legal basis for export control in Ukraine was initiated by the "act on foreign economic activity" adopted by the Verkhovna RDA in 1991. Article 20 of the Act specified that the export and import of weapons, special components for their manufacture, explosive agents, nuclear material, technologies, and services that could be used for the production of weapons require authorization by the Ukrainian state. The Cabinet of Ministers of Ukraine, in coordination with appropriate standing commissions of the Verkhovna Rada, oversees the nomination of foreign economic policy executives and the regulation of related export and import activities.

In March 1992, a decree of the Cabinet of Ministers established the Governmental Export and Technical Commission. The principal task of the commission was to establish and develop an export control system in Ukraine, as well as to promote international cooperation in this area between Ukraine and other countries.

Since the status of the commission as a consultative interagency body did not allow export control issues to be handled quickly and effectively, the President of Ukraine issued a decree "On Improving State Export Control" on January 3, 1993. Based on this presidential decree, the Cabinet of Ministers issued a decree establishing the Governmental Commission on Export Controls and the Export and Technical Committee of the Cabinet of Ministers, which is the executive body of the governmental commission.

Under the jurisdiction of the State Commission are issues related to licensing of exports and imports of arms, military equipment, and dual-use goods and technologies.

In March 1993, by a special decree, the Cabinet of Ministers adopted a list of materials, equipment and technologies which can be exported from Ukraine only after special authorization.

On July 27, 1995, decree N563 of Ukraine's Cabinet of Ministers approved "regulations guiding the control over the export, import and transit of missile technology items, as well as of equipment, materials and technology used in the manufacture of missile weapons". Also, this decree approved control lists which superseded the section "Missile Technology and Equipment" of the list of 1993.

On March 12, 1996, decree N302 of Ukraine's Cabinet of Ministers, approved "Regulations on the Procedure for Controls on the Export, Import and Transit of Commodities Which May Relate to Nuclear Activities and May be Used to Develop Nuclear Weapons". The decree also covers items subject to export/import/transit controls and licensing that is an inherent part of the regulations.

In compliance with Section 228.6 of the Penal Code of Ukraine, the violation of established procedures for the export of commodities, raw materials, equipment and technologies that can be used in the production of missile, nuclear, chemical and other types of armaments, special military equipment or services related to the creation of arms, military and special equipment, and the illegal export of the above mentioned items and related spare parts and ammunition is punishable by imprisonment of up to 8 years with confiscation of property.

State Export Control Authorities

Ukrainian export control authorities are the Governmental Commission on Export Controls and the Export and Technical Committee of the Cabinet of Ministers of Ukraine. There are also units responsible for export control in a number of ministries and agencies.

The Governmental Commission on Export Controls is a broad managerial organ responsible for the coordination of state policy in the area of export control, licensing and determinations of quotas for export and import of commodities subject to export control, and arranging control over legislation implementation. It is made up of representatives, usually at the level of heads or deputy heads, from the Export and Technical Committee, the Foreign Ministry, the Ministry of Machinery Building, military-industrial complex and conversion, the Defense Ministry, the State Customs Committee, the Ministry of Foreign Economic Relations and Trade, the Security Service, the Ministry of Economics, and others.

The Export and Technical Committee of the Cabinet of Ministers is the main state executive organ on export control. The committee conducts its activity in compliance with the decisions of the Governmental Commission on Export Controls, and functions as a permanent body.

The Export and Technical Committee examines applications and issues licenses for export, import and transit of goods subject to export control, submits proposals for renewing the list of commodities subject to export control, provides reports on the implementation of export control legislation, and organizes and maintains cooperation with appropriate organs on export control in foreign countries.

Licensing

There are two types of export/import licenses: individual and general. The general license allows export to or import from a single country or several countries of an unlimited amount of a specified good. This type of license is granted mainly to states of the former Soviet Union. For export, import and transit of commodities subject to export control, uniform individual licenses are used. Applications for export, import and transit licenses for commodities subject to export control are submitted to the Export and Technical Committee for consideration.

When submitting a license application for the export of indigenous goods and technologies, or the re-export of goods controlled by international regimes, the applicant must attach the following documents:

1. An international import certificate;

2. An end-user contract;

3. A copy of the contact;

4. Technical specifications, if required.

Applicants are responsible for the accuracy of the information provided.

When submitting a license application for the import of goods and technologies controlled by international regimes, the applicant must attach the following documents:

1. A copy of the contract;

2. Technical specifications, if required.

At the request of the country of origin, the Export and Technical Committee issues an international import certificate. This procedure is tax free.

When submitting a license application for transit of goods and technologies controlled by international regimes, the applicant must attach a document that affirms that the specified goods are transported through Ukraine on a validated export license from the country of origin, are intended exclusively for the consignee described in the export license, and in the same form as they entered into Ukraine.

The applicant may be asked for additional information necessary to make a decision on the eligibility for export, import, or transit of commodities subject to export control.

The processing fee of license for export, import or transit of commodities subject to export control is not collected.