Cigarette tissue and filters for industrial cigarette production
- Document symbol
- G/LIC/N/3/UKR/17
- Original language
- English
- Published on
- 22/01/2025
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The Law of Ukraine "On State Regulation of Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes and Fuel" contains requirements for obtaining a licence for production of tobacco products and imports of certain products used for cigarette production.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The system is intended to prevent illegal supply of counterfeit products for cigarette production and further protection of public health.
Imports of cigarette tissue and filters for industrial cigarette production can be conducted only by holders of a tobacco production licence. Such goods are imported by legal entities (including foreign entities operating through registered permanent establishments) without the right to further sell them in the customs territory of Ukraine.
Q3. The system applies to goods originating in and coming from which countries?
All countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The system does not restrict the quantity or value of imported products for cigarette production.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The corresponding legislation includes:
- Law of Ukraine “On State Regulation of Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes and Fuel” No. 481/95-BP of 19 December 1995 (as amended), available at https://zakon.rada.gov.ua/laws/show/481/95-%D0%B2%D1%80#Text;
- Order of the Ministry of Agrarian Policy and Food of Ukraine No 13 “On approval of the Requirements for the full technological cycle of tobacco products production”of 04 January 2023, available at https://zakon.rada.gov.ua/laws/show/z0286-23#Text.
This system cannot be abolished without legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
The period for consideration of application for obtaining a tobacco production license may not exceed 30 calendar days following the date of receipt of required documents.
Q7.b. Can a licence be granted immediately on request?
A license may be issued in a shorter time frame and depends only on technical capacity of the relevant authority.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Applications can be submitted at any period of the year.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The consideration of the applications for a licence is effected by the State Tax Service of Ukraine.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
An application for a licence may be refused if an incomplete package of documents is submitted, inaccurate information is provided in the documents, the annual licence fee is not paid. A decision to refuse to issue a licence shall be provided to the applicant in writing. A decision to refuse to issue a licence may be appealed to the district administrative court in accordance with the provisions of the Code of Administrative Proceedings of Ukraine.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Legal entities (including foreign entities operating through registered permanent establishments) that, at the time of submitting the application for the licence, are the owners or, on other legally permitted grounds, possess and/or use facilities and equipment that ensure the full technological cycle of tobacco production, including production of tobacco mixtures, cigarette production facilities, provided that such facilities and equipment for production are used by only one legal entity (including a foreign entity operating through registered permanent establishment).
The licence is issued after the certification of the factory (production facilities, areas, laboratories and other units used in the manufacturing and control over the manufacture of tobacco products) to meet the requirements established by the current legislation of Ukraine for ensuring human life and health, environmental protection, the full technological cycle of tobacco production, as well as compliance with sanitary, fire, environmental standards and regulations.
A licence shall be issued subject to mandatory registration of the taxable entity in accordance with the requirements of paragraph 63.3 of Article 63 of the Tax Code of Ukraine.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
To obtain a tobacco production licence the following documents shall be submitted:
- an application for a licence (optional form);
- copies of foundation documents;
- a production certificate issued by authorized central executive body;
- a contract with an accredited laboratory (in case if there is no own accredited laboratory);
- a document confirming payment of the licence fee.
If these documents are issued to a person other than the applicant, such person shall additionally submit documents confirming his/her right to use the relevant facility.
Copies of documents shall be submitted in one sample certified by the applicant.
Q11. What documents are required upon actual importation?
At the time of actual importation a valid tobacco production licence is required along with other necessary customs documents.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
The annual licence fee is 780 UAH.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
A licence is issued for an unlimited period.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
Other conditions accompanying issuance of licences are:
- submission of a document confirming payment of the licence fee;
- submission of a document identifying the person receiving the licence.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Legal entities (including foreign entities operating through registered permanent establishments) that hold a tobacco production licence shall register the storage locations of tobacco raw materials in the Unified Register of Storage Locations if such storage is located at a different address (premises) than the production location.