Controlled substances, goods and equipment containing controlled substances
- Document symbol
- G/LIC/N/3/UKR/16
- Original language
- English
- Published on
- 04/09/2023
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.
Imports of ozone-depleting substances and fluorinated greenhouse gases, goods and equipment that may contain ozone-depleting substances and fluorinated greenhouse gases is subject to licensing. This system for import licensing aims at protecting the environment from ozone-depleting substances and fluorinated greenhouse gases to comply with the requirements of the Montreal Protocol on the substances that deplete the ozone layer.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The goal of licensing is to protect the environment from ozone-depleting substances and fluorinated greenhouse gases. The following imports are subject to licensing:
- ozone-depleting substances and fluorinated greenhouse gases (within the determined annual national quota); and
- goods and equipment that may contain ozone-depleting substances and fluorinated greenhouse gases.
Ozone-depleting substances and fluorinated greenhouse gases, goods and equipment that may contain ozone-depleting substances and fluorinated greenhouse gases are listed in the Resolution of the Cabinet of Ministers No. 1466 of 27 December 2022 "On approval of the lists of goods export and import of which are subject to licensing, and quotas for 2023".
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods from countries that are Parties to the Montreal Protocol.
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 purpose of licensing is to protect the environment from ozone-depleting substances and fluorinated greenhouse gases. Licensing of import of ozone-depleting substances and fluorinated greenhouse gases, goods and equipment that may contain ozone-depleting substances and fluorinated greenhouse gases is carried out in conformity with the requirements of the Montreal Protocol on the Substances that Deplete the Ozone Layer.
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 legislation under which licences are maintained includes:
- Law of Ukraine "On Foreign Economic Activity" No. 959 of 16 April 1991;
- Law of Ukraine "On Regulation of Economic Activity Related to Ozone-Depleting Substances and Fluorinated Greenhouse Gases" No. 376 of 12 December 2019;
- Resolution of the Cabinet of Ministers of Ukraine No. 1466 of 27 December 2022 "On approval of the lists of goods export and import of which are subject to licensing and quotas for 2023";
- Resolution of the Cabinet of Ministers of Ukraine No. 992 of 23 September 2020 "Some regulatory issues in the sphere of ozone layer protection";
- Order of the Ministry of Ecology and Natural Resources of Ukraine No. 459 of 2 December 2015 "On adoption of the Procedure for issuing approval to import/export of controlled substances, goods and equipment";
- Order of the Ministry of Economy of Ukraine No. 302 of 14 September 2007 "On approval of the regulatory acts relating to licensing of imports of goods and amendments to the Procedure for consideration of applications for issuance of licences related to non-tariff regulation of foreign economic activities in the Ministry of Economic Development and Trade of Ukraine". The Order sets forth a procedure for consideration of applications for issuance of licences, a procedure for preparation and issuance of licences for imports of goods subject to licensing, licence form and procedure for its completion, an application form for obtaining a licence and its completion.
The Cabinet of Ministers of Ukraine may abolish a system of import licensing of goods during the year in question, provided that the goals of the policy have been achieved.
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):
Annual national quota (annual consumption) of ozone-depleting substances and fluorinated greenhouse gases is defined and limited by the Montreal Protocol. Pursuant to the Montreal Protocol, the decisions of the 24th meeting of the Parties to the Montreal Protocol and the 49th meeting of the Committee on the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer, the estimated level for consumption of ozone-depleting substances for Ukraine in 2023 amounts to 0.821 tons.
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?
Information on quota is provided in the Resolution of the Cabinet of Ministers of Ukraine No. 1466 of 27 December 2022 "On approval of the lists of goods export and import of which are subject to licensing, and quotas for 2023". The Resolution of the Government is published in official publications "Uriadovyi Courier", "Ofitsiynyj Visnyk Ukrainy" and available on the Internet sites of government agencies, in particular, the Verkhovna Rada (https://rada.gov.ua), the Cabinet of Ministers of Ukraine (https://www.kmu.gov.ua) and the Ministry of Economy of Ukraine (http://www.me.gov.ua). There is no country specific quota. The legislation does not provide for any exception or derogation from licensing requirements.
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?
The volume of quota is determined on a yearly basis without any six-month or quarterly break-down.
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.)
Quota not used in the previous period is not added to the volume of quota for the next period. To date the Ministry of Economy of Ukraine has never received requests from governments and export promotion bodies of exporting countries regarding the list of importers to whom licences have been allocated.
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?
There are no restrictions regarding a period of the time during which it is allowed to submit an application for a license.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
The period for consideration of applications may not exceed 30 days following the date of receipt of the application. A license may be issued in a shorter time frame and depends only on technical capacity of the relevant authority.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
A license shall be effective for importation of goods from the date it is granted.
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?
The authority to grant licences lies with the Ministry of Economy of Ukraine. To issue a license the Ministry of Economy obtains prior approval for the import of these goods from the Ministry for Protection of Environment and Natural Resources in the order of interagency exchange of information.
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?
Applications to obtain licenses are reviewed in order of their receipt. The amount of quota per applicant is determined by the results of the electronic auction for the purchase of the share of annual national quota for import of ozone-depleting substances and fluorinated greenhouse gases. The maximum amount of quota that may be allocated per applicant is 25%. The Procedure for allocation of shares of annual national quota for imports of controlled substances (ozone-depleting substances and fluorinated greenhouse gases) is approved by the Resolution of the Cabinet of Ministers of Ukraine No. 992 of 23 September 2020 "Some regulatory issues in the sphere of ozone layer protection". Such provisions are also set for new entities engaged in foreign economic activities.
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?
Yes, import licenses are required, they are not 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?
No.
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)?
Q7.b. Can a licence be granted immediately on request?
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.
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?
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 an import licence may be refused if any of the requirements set forth in the legislation is not met. The reason to refuse to issue a licence also includes receiving by the Ministry of Economy information from the Ministry of Environmental Protection and Natural Resources on existence of grounds to refuse the approval for the import of ozone-depleting substances and fluorinated greenhouse gases or goods/equipment that contain them. 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 entity or individual entrepreneur with the status of operator of controlled substances is eligible to apply for licenses.
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?
An application for a licence shall contain the following information: full name of a legal entity or individual entrepreneur, full name of its manager, description and code of the good (goods) under Ukrainian Classification of Goods of Foreign Economic Activity (UKT ZED), name of the producer, consumer of the good (goods), code and name of the state (states) of origin and destination/departure, term of validity of the licence, quantity and value of the goods, code and name of the customs point, full names and addresses of the seller and customer, nature of the contract, currency of payment, principal and additional unit of measurement for the good (goods), approval of executive bodies (if required), basis for request for a licence, special terms of the licence.
To obtain a licence for imports of goods the following documents accompanying the application shall be submitted:
- a letter requesting a licence and guaranteeing payment of the state fee for the issuance of the licence;
- a copy of a foreign economic activity contract, all annexes and specifications to it, certified by the manager of a legal entity or individual entrepreneur and seal;
- a copy of the state registration certificate as a legal entity or individual entrepreneur certified by the manager and seal.
Q11. What documents are required upon actual importation?
At the time of actual importation the following documents are required: foreign economic agreement (contract); shipment customs declaration; certificate of origin; import license.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
A fee for licence is 780 UAH.
According to the Resolution of the Cabinet of Ministers of Ukraine No. 241 of 10 March 2022 "On amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 362 of 18 May 2005 'On setting the fee for issuing export (import) licences'" the fee for issuing a license for export (import) of goods is not charged until termination or cancellation of the martial law in Ukraine.
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 valid for the licence 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 licenses are:
- submission of a document verifying payment of the fee for a license;
- submission of a power of attorney, or of a copy of a power of attorney authorizing receipt of a license, and submission of a document identifying the person receiving the license if the license is issued to the authorized representative of a legal entity or individual entrepreneur.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.