Ukraine plans to join European Convention on Common Transit in Q2 2022 – customs official
KYIV. September 23 (Interfax-Ukraine) – Ukraine’s accession to the European Convention on a Common Transit System is expected at the end of the second quarter of 2022, already in the third quarter, Ukrainian companies will be able to transit through 35 countries on the principle of a vehicle – a transit declaration – a guarantor commitment, said Serhiy Demchenko, director of the Department for the implementation of the international transit system of the State Customs Service.
At a roundtable titled “Implementing customs procedures in accordance with EU practice: what changes can Ukrainian companies expect? Practical aspects” held at Interfax-Ukraine, he said he acts from all EU countries, European Free Trade Association (EFTA) countries, Turkey, Serbia, North Macedonia and United Kingdom
The expert recalled that accession to the Convention is foreseen by the Ukraine-EU Association Agreement and that it will intensify international trade due to the establishment of common transit procedures by Ukraine with the member countries of the Convention and their use of a unique technology – the new Transit System (NCTS). This system allows member countries to exchange customs data in real time and track goods at each stage of transport.
“The common transit system provides four main simplifications of special transit for businesses: the authorized consignor, the authorized consignee, the special seal and a guarantee,” Demchenko said. He added that new approaches are being applied to the standard collateral amount, which will reduce the amount when used by 50%, 70% or 100%.
To achieve simplifications in NCTS, the legislation provides for a special procedure. The guarantee can be provided by companies having received the status of financial guarantor. To submit a transit declaration to NCTS, a company must register on the Trader Portal in the “Personal Account” of the “Single Window for International Trade” portal.
“Ukrainian legislation on public transport has already been broadly designed and is in line with European best practices,” key international expert on customs reform of the EU4PFM program to improve public financial management (PFM) in Ukraine, former Lithuanian customs vice-president said Service Vytenis Ališauskas during the roundtable.
To date, more than 3000 customs officers are registered in the system, more than 180 companies have access to the trader portal, around 300 T1UA declarations have been submitted, three companies have been granted the status of financial guarantor and the Helpdesk is functioning.
As noted, the NCTS is still in use in Ukraine nationally. However, as a representative of the National Customs Service stated, “companies that use NCTS (have submitted 50 or more declarations) can submit documents to the National Customs Service for simplifications, which will be valid even after the Ukraine’s accession to the Convention, that is, with the international application of the system.