Ukraine - Import TariffsUkraine - Import Tariffs
According to Article VII of the Law of Ukraine on Foreign Economic Activity, Ukraine’s tariff schedule includes three rates of import duties:
- Full - The full rate of import duties can be from two to 10 times higher than the Most Favored Nation rate
- Most Favored Nation (MFN) - Upon becoming a WTO member in 2008, Ukraine applied new, lower MFN rates to all goods originating from WTO members, in agreement with Article I of the 1994 GATT
- Preferential - Preferential rates (lower than the MFN rates) apply to imports from countries with which Ukraine has a Free Trade Agreement (FTA) or other preferential trade agreement, i.e., imports primarily from CIS countries.
U.S. exports to Ukraine usually receive the MFN rate if they meet the following three criteria: 1) the company is registered in the United States; 2) the goods have a certificate to prove U.S. origin, and 3) the goods are imported directly from the U.S. Most customs tariffs are levied at ad valorem rates, and only 1.5 percent of tariff line items are subject to specific or combined rates of duty. The average applied tariff rate fell to 4.95 percent after WTO accession and further decreased to 4.8 percent in 2011.
Current customs duty rates are set by two Supplements to the Law on Customs Duty Rates of Ukraine № 584-VII. Interested American exporters can learn about current Ukrainian customs duty rates by first browsing the U.S. Harmonized Tariff Schedule for the specific numeric code(s) for the exported product, and then match the code(s) to the Ukrainian Customs Tariff Schedule.
In addition to customs duties, the following goods are also subject to excise tax pursuant to the Law of Ukraine of 24.12.2015 №909 “On Amendments to the Tax Code of Ukraine and certain laws of Ukraine to ensure the balance of budget revenue in 2016.” These are:
Ethyl alcohol and other distillates, alcoholic beverages, beer, tobacco products, tobacco, and manufactured tobacco substitutes
Fuel
Passenger cars, body thereto, trailers, motorcycles, vehicles designed for transportation of 10 persons or more, goods-carrying vehicles
Electricity
Excise duties are assessed as a percentage of the sum of the declared customs value, customs duties, and fees paid for importing products. Excise rates are in the Article 215 of the Tax Code of Ukraine № 2755-VI. Tariffs and excise payment must be made in Ukrainian currency at the Ukrainian National Bank exchange rate effective on the day of payment.
The VAT rate is 20 percent on most goods.
Because VAT repayments have historically been a contentious issue, with many foreign companies owed millions of dollars in VAT refunds in 2015 and 2016, the Government of Ukraine introduced significant changes to the VAT refund procedure. In January 2017, the Law of Ukraine No. 1797-VIII “On Amendments to the Tax Code of Ukraine and Improving Investment Climate in Ukraine” came into effect. This law requires the State Treasury (not Ukraine's tax agency) to process VAT refunds. Refunds are now based on the Register of VAT Refund Claims. Also, VAT refunds are paid automatically in chronological order of the receipt of VAT refund applications.