In the modern world, the import of goods is an important component of the economy. Importing to Ukraine, which is actively integrating into world trade, understanding import processes is extremely relevant. For many companies, it is the import of products from abroad that becomes the main tool for business development.
At the same time, this procedure has its own rules. You need to know what import and export are, how they differ, what taxes apply and what documents are required for registration. It is also important to take into account the features of importing services and the concept of critical import. This article will help you understand what documents are required for it, what taxes are paid, and how to simplify this process as much as possible.
What is import and export: what is the difference
Import is the import of goods or services into the territory of a country. Enterprises purchase products abroad and supply them to the domestic market. We are talking about goods intended for sale in another country or for processing in the domestic market. Import is a process that allows countries to obtain what they cannot produce on their own. What is import and export – these are two directions of trade.
Export is the export of goods outside the country. They are sent abroad for further sale. This is the main difference between import and export. When a Ukrainian company sends products abroad, it is an export. When it imports foreign goods, it is already an import. That is why they often talk about the export-import balance of Ukraine. If there are more imports of products, the country consumes more external resources. If there are more exports, this indicates strong production. Both processes are part of foreign economic activity, that is, foreign economic activity. Export-import of Ukraine is the foundation of its economic cooperation with other countries.
Basic rules and requirements for import in Ukraine
Import to Ukraine is regulated by current legislation. This includes the Customs Code and other regulatory acts. It is important to comply with all legislative requirements. Otherwise, importers may have certain problems. All operations that take place must be legal. Each of them must comply with customs legislation.
Basic rules:
- the product must undergo certification and safety checks;
- it is necessary to submit a GMD;
- the company must pay all duties and taxes;
- some categories are critical and have special conditions;
- all operations are controlled by customs.
The main requirement is the correct clearance of the cargo. It is necessary to prepare and check all documents. Without fulfilling these requirements, customs clearance will be impossible. For a business, this means additional time costs if the documents are prepared incorrectly.
It is also necessary to pay all relevant taxes in advance. Customs clearance of import is a mandatory stage that cannot be bypassed in any way. It includes a detailed inspection of the cargo by a customs inspector. It is classified according to the UKT Foreign Economic Activity codes. The import customs declaration (Customs Declaration) is one of the main documents. Without it, the legal import of goods into Ukraine is impossible. The speed and success of the entire process of customs clearance and crossing the border with the cargo depends on the correct filling out of the customs declaration.
Taxes and import duties
Every company that imports goods faces tax obligations. Import duty is a mandatory payment. It is collected by customs authorities. What is import duty? This is a tax that protects the domestic Ukrainian market from competitors’ goods from abroad. Its rate depends on the specific product code. For example, if a company imports clothes from Turkey, it must pay VAT and duty. This makes the final price of the goods higher, but at the same time supports local textile manufacturers. The country of origin also affects the duty. The amount of duty may vary. Some goods can be imported duty-free – this happens within the framework of international agreements.
Import of goods VAT is another important payment. It is paid by almost all importers. The VAT rate is 20%. It is calculated on the customs value of goods. In addition, the amount of duty and excise duty (for certain categories) is added. There are certain exceptions, which will be discussed below. Some goods may be exempt from VAT. For example, humanitarian aid.
Calculating customs payments is a very complicated process. It is better to entrust it to experienced specialists. They will help you avoid typical mistakes. And it also helps to optimize costs. This approach will make your business more profitable.
Documents for customs clearance of imports
Customs clearance of imports requires a full package of documents. It takes place at a special customs terminal. The absence of one of them will cause delays or even seizure of the cargo by customs. The main document is a foreign economic contract. It specifies all the terms of the agreement.
Here is a list of all important documents:
- Invoice (invoice) – confirms the real cost of the goods.
- Packing list – details the contents of the cargo.
- Contract between the supplier and the buyer.
- Transport documents (CMR, bill of lading, etc.).
- Export declaration (of the exporting country).
- Certificates of origin (EUR.1, ST-1).
- Documents for payment taxes.
- VMD (Cargo Customs Declaration).
All documents must be drawn up correctly, in accordance with the requirements of current legislation. Any inaccuracy can lead to large fines. Or the lack of several documents sometimes leads to confiscation of the cargo. Therefore, this stage must be taken very seriously.
Import of services: what businesses need to know
Import of services is their purchase from foreign companies. These can be marketing services, consulting, logistics, transport, software rental. For companies that often work in foreign markets, outsourcing to foreign economic activity import companies is useful. This allows you to delegate accounting and legal support.
The rules for taxing services differ. The place of supply determines whether VAT will be paid. If the place of supply is Ukraine, VAT is paid by the recipient. This is called reverse charge tax. It is important to correctly classify the service and determine its place of supply. Very often this is the most difficult moment for the company.
Critical imports in wartime
Critical imports are goods that are vital to the state. They are important for the stable and continuous functioning of the economy. The list of these goods is approved by the government. This allows them to be imported from abroad more quickly.
During martial law, the list of critical goods changed. It included fuel, medicines, energy equipment, and military ammunition. This helps to support the country in difficult conditions for it. The state gives priority to certain groups of goods. They are quickly passed through the border using a simplified system. And Ukraine quickly receives the goods it needs.
Geography of imports: key directions
Ukraine imports goods from many countries. The main partners are EU countries. Also, significant volumes fall on China and other countries.
Imports from Poland occupy an important place for Ukraine. Poland is our largest trading partner due to the proximity of this country to our state. Food products and household chemicals come from there. We also receive machinery and various equipment from Poland. Delivery from Poland is often carried out by road, because it is convenient and fast.
The volume of products from China is also very significant. Chinese goods have a low price compared to competitors. Electronics, clothing, toys are brought from there. Import from China requires careful preparation. This is a very long and complicated process. It is important for the importer to choose the right logistics partner. He must have experience working in this area, then all stages of import clearance from
China will be completed quickly.
Outsourcing of foreign economic activity for import: why it is beneficial for business
Outsourcing of foreign economic activity for import companies is a logistics assignment. This is a service that allows you to delegate foreign economic activity. A specialized company takes on all the worries: from negotiations with the supplier to customs clearance.
The TVL company carries out international cargo transportation and offers brokerage services. The customs terminal ensures quick clearance of imported goods. This significantly saves your time and minimizes risks. You receive a ready-made product “turnkey” with minimal cost and a full package of documents.
Such a thoughtful approach allows you to focus exclusively on business. You do not waste time on bureaucracy and studying the current legislative requirements regarding goods imported into Ukraine. Interaction with experienced brokers makes importing goods easier. This is the best solution for business. This is especially true for those who do not have their own logistics department.
Conclusions
Import is an important element and a significant part of world trade. This is a complex process, but it can be simplified. The main thing is to know all the rules. It is important to have a reliable and proven partner.
TVL is ready to help. International cargo transportation with us is easy, fast and simple. We provide a full cycle – from delivery and paperwork to customs clearance. We take all steps quickly and easily. Contact us and your cargo will be delivered to its destination on time. Do not forget about important points: this is the import of goods VAT, duty, GST. And also the correct execution of documents.
