Raw cane sugar

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 raw cane sugar within the tariff quota is subject to licensing. This system for import licensing aims at ensuring the implementation of international agreements.

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 fulfill Ukraine's obligations under the WTO regarding the administration of tariff quota for raw cane sugar. Import of raw cane sugar is subject to licensing.

Q3. The system applies to goods originating in and coming from which countries?

The system applies to goods originating in and coming from 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?

Import licensing is used for the purpose of administering imports under the established tariff quota.

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 Establishing a Tariff Quota for Imports of Raw Cane Sugar into Ukraine" No. 404 of 30 November 2006;

- Resolution of the Cabinet of Ministers of Ukraine No. 1002 of 12 November 2008 "On approval of the Procedure for allocating the tariff quota on imported raw cane sugar into Ukraine";

- Order of the Ministry of Economy of Ukraine No. 15 of 20 January 2009 "On Procedure for issuing licences to import raw cane sugar into Ukraine within the tariff quota".

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?

The specified legislative and regulatory acts are published in official publications "Ofitsiynyj Visnyk Ukrainy" and "Uriadovyi Courier" 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). Information relating to administration of tariff quota for imported raw cane sugar, including licensing procedure, was notified to the WTO by document G/AG/N/UKR/48 of 22 March 2023. There is no country specific quota. There is no maximum volume of quota that can be allocated to each importer. 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?

A tariff quota for import of raw cane sugar is the annual one and is set once a year, 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.)

The amount of the tariff quota not used in the current year is not to be added to the quota set for the following year.

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?

An application for a license may be submitted on any day after the date of the beginning of acceptance of applications for import licenses.

Q6.V. What are the minimum and maximum lengths of time for processing applications?

A decision on granting a license for import of raw cane sugar must be passed within a period not longer than 30 days from the date of the registration 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 Ministry of Economy of Ukraine considers licence application for import of raw cane sugar to Ukraine. Licence is issued on the approval of the Ministry of Agrarian Policy and Food of Ukraine. The approval should be received by the applicant before applying for licence.

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?

The decision on granting the licence is made on a first-come, first-served basis. There is no maximum volume of quota that may be allocated per applicant or for quota that is set for new business entities. Examination of applications for import licences is carried out in the order of their 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?

Not applicable.

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?

N/A

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

N/A

Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:

N/A

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)?

N/A

Q7.b. Can a licence be granted immediately on request?

N/A

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.

N/A

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?

N/A

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 the applicant does not meet ordinary criteria. The reason to refuse to issue a licence also includes exhaustion of quota. 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 is eligible to apply for a licence.

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, its location, phone number, fax number, EDPNOU code (National State Registry of Ukrainian Enterprises and Organizations), number of the current account in national currency, bank name, MFO, bank location, number of the current account in foreign currency, bank name, MFO, bank location, consumer/seller of the product, commodity code under UKT ZED, unit of measurement, quantity and value of the goods, value (in the contract currency), additional name of the commodity, country of destination/seller, country of origin, basic conditions for delivery of the commodity imported by Incoterms, contract currency code, special terms.

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;

- a copy of the state registration certificate as legal entity or individual entrepreneur;

- an approval of the relevant state authority.

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) licenses" 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?

The term of the validity of the import licence is 90 days from the date of its signing, but shall be valid only until December 31 of the year for which it has been issued, within the amount of tariff rate quota. Imports under the license may be carried out during the term of validity of the license.

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; and
- 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?

In the period not later than 15 days after the date of import licence validity expiring, legal entity or individual entrepreneur should submit to the Ministry of Economy information on factual import of goods under the licence (indicating amounts)

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

N/A