Import of goods to Ukraine: How to do it right

Importing goods into Ukraine is an important aspect of the country's economic activity, playing a key role in providing the domestic market with a variety of goods and services. This process involves many steps and procedures, from finding a reliable supplier and concluding a contract, to passing through customs formalities and receiving the goods at the warehouse. Successful import requires a careful approach to legal, financial and logistical issues, as well as careful fulfilment of all regulatory requirements. It is important to understand the specifics of Ukrainian legislation and international trade standards to minimize risks and ensure effective management of import operations.

SUPPLIER SELECTION

Choosing a supplier when importing goods into Ukraine is a key stage affecting the success of the entire logistics chain and the economic efficiency of the business. It is important to consider several critical factors. First of all, it is necessary to assess the reputation and reliability of a potential supplier by checking references and recommendations. The best way to do this is to personally visit the company abroad. If this is not possible, you can contact specialised surveying companies, such as SGS, Bureau Veritas and order an on-site inspection. You should also pay attention to the terms of the contract, including delivery times, product quality, availability of certificates and the possibility of providing trial batches. Financial aspects such as price, payment terms and credit facilities are also important. Logistics and customs clearance are also important, so it is worth choosing suppliers with experience in the Ukrainian market and an understanding of local regulatory requirements. All these steps will help minimize risks and ensure a stable supply of quality goods.

CONTRACT CONCLUSION

When concluding a contract with a supplier to import goods into Ukraine, it is important to take into account several key points. Here are the main ones:

1. Legal aspects

Legal framework: Make sure that the contract is drawn up in accordance with the laws of Ukraine and the supplier's country. It is advisable to involve a lawyer specializing in international trade.

Legal form of the contract: The contract should be signed by authorized persons and contain all mandatory details.

2 Commodity terms and conditions

Description of goods: Describe the goods in detail (model, specifications, quantity, quality, packaging and labelling). This will help to avoid misunderstandings in the future.

Certificates and permits: Make sure that the goods comply with Ukrainian standards and have all necessary certificates and permits.

3. Commercial terms

Price: Specify the currency, fixed unit price and total amount of the contract. Pay attention to possible exchange rate fluctuations.

Payment terms: Define the method of payment (prepayment, postpayment), terms and conditions of payments.

4. Logistics and delivery

Delivery terms: Define the delivery terms in accordance with INCOTERMS 2020 (e.g. EXW, FCA, FOB, CIF, DDP), specify the place and date of delivery.

Transport: Outline the responsibility of the parties for arranging and paying for transport, insurance, customs clearance and other related services.

Delivery terms: Clearly specify delivery terms and possible penalties for their violation.

5. Insurance

Cargo Insurance: Identify who is responsible for insuring the goods and what risks are covered.

6. Customs formalities

Customs clearance: Identify which party is responsible for the export declaration and customs clearance in Ukraine.

7. Force Majeure

Force majeure: Specify the conditions under which the parties are released from liability for failure to fulfil their obligations.

8. Confidentiality

Confidentiality: Outline the conditions for confidentiality of commercial information obtained during the performance of the contract.

• Examples of important contract clauses
• Subject matter of the contract: Precise description of the goods.
• Contract Term: Start and end dates.
• Responsibilities of the parties: Duties and rights of each party.
• Termination Conditions: The procedure for cancellation of the contract and the consequences.

By paying attention to these aspects, you can minimize risks and ensure successful contract performance.

PAYMENT

Agreeing payment terms with the supplier is one of the key aspects of contracting. It is important to consider several points to minimize risks and ensure convenient and favourable terms for both parties.

1. Methods of Payment

Prepayment: Prepayment usually requires the buyer to pay in full or in part before the goods are dispatched. This can be advantageous for the supplier but risky for the buyer, especially if there is no long-term relationship or guarantee of fulfilment.

Deferred payment: The buyer pays for the goods upon receipt of the goods within a specified period of time. This is favourable for the buyer but risky for the supplier.

2. Currency of payment

Contract currency: Specify the currency in which payment will be made. Consider possible exchange rate fluctuations and their impact on the value of the goods.

Currency risks: Consider using hedging or including price renegotiation clauses in the contract in case of significant exchange rate fluctuations.

3. Payment Schedule

Payment stages: Define the stages at which payment will be made (e.g. advance payment, staged payments, final payment after delivery).

Payment terms: Clearly specify the dates or periods during which payments are due. Identify possible penalties for late payment.

4. Bank details

Bank details: Ensure that the supplier's bank details are accurate and up to date. Errors may result in delays or loss of funds.

Fees: Determine which party bears the cost of bank fees for international transfers.

Examples of payment terms

• Prepayment 30% upon signing the contract, 70% upon receipt of goods at the buyer's warehouse.
• Postpayment within 30 days of receipt of goods with the possibility of a 2% discount for early payment within 10 days.

Properly agreed payment terms will help to ensure smooth fulfilment of contractual obligations and minimise financial risks.

CUSTOMS CLEARANCE OF IMPORTS IN UKRAINE

Customs formalities in Ukraine for imported goods require a careful approach and precise fulfilment of all procedures. Here are the main steps and details to pay attention to:

1. Document preparation

Contract: Signed contract on both the supplier's and buyer's side.

Invoice (Invoice): A document confirming the value and quantity of the goods.

Packing List: A detailed description of the goods, their packaging and number of spaces.

Certificates of Origin: Confirm the country of origin of the goods (e.g. EUR.1).

Certificates of Conformity: Confirm the conformity of the goods to Ukrainian standards.

Transport documents: CMR waybill, bill of lading, air waybill, etc.

Insurance policy: A document confirming the insurance of the cargo.

2. Customs declaration

Goods code according to the Ukrainian Classification of Goods for Foreign Economic Activity: Determine the correct code of goods according to the Ukrainian Classification of Goods for Foreign Economic Activity.

Electronic Declaration: Prepare and submit an electronic customs declaration through the "Single Window" system.

3. Payment of customs duties

Customs duty: Determine the amount of customs duty in accordance with the UKT VED.

VAT (value added tax): Usually amounts to 20 per cent of the value of the goods.

Excise Duty: For some goods (alcohol, tobacco, fuel), excise duty must be paid.

4. Customs clearance

Submission of documents: Submit the complete package of the above documents to the customs authorities for inspection.

Customs inspection: Physical inspection of the goods to check compliance with the documents is possible.

Customs clearance: After successful inspection and payment of all duties, the goods are given the status of "released into free circulation".

Tips for successful customs formalities

• Check all documents carefully: Errors or inaccuracies can lead to delays or additional inspections.
• Use the services of a customs broker: Specialists can help you complete all documents correctly and save time.
• Prepare for inspections: In some cases, Customs may require additional information or expertise.

Correct and careful fulfilment of all these steps will help to successfully pass customs formalities and import goods to Ukraine without delays and problems.