Sulfuric acid and oleum
- 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.
Special licensing system using quotas for imported goods is established by the Law of Ukraine "On Application of Special Measures on Imports to Ukraine" No. 332 of 22 December 1998 and the Law of Ukraine "On Foreign Economic Activity" No. 959 of 16 April 1991. Quantitative restrictions on imports are applied to goods with respect to which Interdepartmental Commission for International Trade (further – Commission) has adopted a decision to apply safeguard measures. Imports of goods specified by a decision of the Commission is carried out on the basis of special licence.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Special licensing system using quotas for imported goods (established under separate decisions of the Commission) covers the licensing of imports of sulfuric acid and oleum (UKT ZED code
2807 00 00 00).
Information on Decision of the Commission No. SP-391/2018/4411-05 on application of safeguard measures on imports into Ukraine of sulfuric acid and oleum regardless of country of origin and export has also been notified to the WTO by documents G/SG/N/8/UKR/6; G/SG/N/10/UKR/6; G/SG/N/11/UKR/4; G/SG/N/8/UKR/6/Suppl.1; G/SG/N/10/UKR/6/Suppl.1; G/SG/N/11/UKR/4/Supp.1; G/SG/N/8/UKR/6/Suppl.2; G/SG/N/10/UKR/6/Suppl.2; G/SG/N/8/UKR/6/Suppl.3; and G/SG/N/10/UKR/6/Suppl.3.
Q3. The system applies to goods originating in and coming from which countries?
Special licensing system applies on imports of the sulfuric acid and oleum regardless of country of origin and export.
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 special licensing system is intended to restrict the quantity of imports of the determined goods. The purpose of licensing is to protect the interests of domestic goods producers from growing imports of such goods.
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 system of special licensing is established by the Law of Ukraine "On Application of Special Measures on Imports to Ukraine" No. 332 of 22 December 1998, the Law of Ukraine "On Foreign Economic Activity" No. 959 of 16 April 1991 and the Order of the Ministry of Economy and European Integration of Ukraine No. 232 of 1 August 2002 "On Procedures of licensing of imports to Ukraine of goods subject to special measures".
The Order establishes the procedure for reviewing applications for a special licence, the procedure for issuing a special licence, the form of a special licence and the procedure for filling it out, the form of an application for a special licence and the procedure for filling it out.
Quantitative restrictions of imports under special licensing system are established according to the decisions of the Commission, in particular No. SP‑391/2018/4411-05 of 2 July 2018 "On application of safeguard measures on imports into Ukraine of sulfuric acid and oleum regardless of country of origin and export", No. SP‑500/2021/4411-03 of 27 August 2021 "On extension of safeguard measures on imports into Ukraine of sulfuric acid and oleum regardless of country of origin and export".
The decision of the Commission determines the goods subject to licensing. The special licensing system cannot be abolished without a 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?
According to the special import licensing system, which envisages quota allocation, the lists of goods are determined by the decisions of the Commission. The Commission's decisions regarding the application of special measures on imports of certain goods with allocation of aggregate level of quotas and allocation of quotas by countries of origin/export are published in the official publication "Uriadovyi Courier" and are available on the Internet sites of the Cabinet of Ministers of Ukraine https://www.kmu.gov.ua and of the Ministry of Economy of Ukraine http://www.me.gov.ua.
The Ministry of Foreign Affairs of Ukraine notifies governmental bodies of exporting countries.
In case of allocation of quotas among the exporting countries, such allocation may be agreed with such countries. If no such agreement is reached, the quotas are allocated among the exporting countries depending on their shares of imports of goods to Ukraine subject to special investigation during the previous representative period.
In order to prevent market monopolization, the total number of applications from one importer for special licences within the established quotas may not exceed 35% of the volume of the quota period or another period, if it is provided for by the relevant decision of the Commission.
Any exceptions or deviations from the special licensing requirements are not allowed without amendments of legislative acts.
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 the special quota is determined for a quota period and may not exceed the amount specified by the relevant decision of the Commission. The quota period and allocation of quotas during the quota period shall be established by the relevant decision of the Commission. The total volume of imports under special licences may not exceed the established quota.
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.)
Licensing procedures apply to all importers of goods subject to special measures under the decisions of the Commission. In case the special quota is not used fully in the quota period, it is allowed to carry over the remaining quota for the next quota period within 6 per cent of the quota volume set for the quota period, unless otherwise provided by the relevant decision of the Commission. Information on holders of the special licence may be provided upon request.
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?
The applications for import licences are accepted 14 days prior to the first day of the relevant quota period.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
The term during which the licence application may be considered is 15 working days. Applications are reviewed in order of their receipt.
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 special licence shall be effective for imports of goods as of the date of its issuance.
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 applications. Applications shall not be submitted to other bodies for approval, commenting or endorsement. An importer does not have to apply to any other administrative bodies for approval of the application.
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?
If the demand for a licence cannot be fully satisfied, a licence is issued for a part of the demand, i.e., for volume of quota left. To prevent market monopolization the total number of applications from one importer to obtain special licences within the established quotas may not exceed 35% of the volume of the quota period or another period if it is provided for by the relevant decision of the Commission. All importers differ only by date of the submission of the application. Applications are considered in the order of their receipt. If at the time of submission of an application the set volumes for special quotas have been used up, such application shall not be accepted for consideration. The applicant shall be informed in writing of the fact that the special quota has been exhausted.
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?
Issue of special licences does not depend on availability of bilateral quotas or arrangements. Special licences 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?
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?
A special licence application is accepted in all cases, unless the application is inconsistent with the terms of the contract and/or is submitted incorrectly and/or an incomplete package of required documents is submitted.
Exhaustion of the quota is also a ground for refusal to issue a special licence. The 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 a 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 or individual entrepreneurs are eligible to apply for special import 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 special licence shall contain the following information: full name of the importer, 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 and its location, commodity code under UKT ZED, unit of measurement, quantity and value of the good, 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, customs code, nature of the agreement, basis for requesting a special licence, special conditions.
To obtain a special licence the following documents accompanying the application shall be submitted:
- a request letter on issue of a licence, with a guarantee of the payment of the official licence fee;
- a copy of the contract, all annexes and specification thereto, verified by the manager of the legal entity;
- a copy of the state registration certificate verified by the manager of the legal entity;
- a copy of the certificate of assignment of the taxpayer identification number;
- the original certificate of origin of the foreign goods issued by the authorized body of foreign country of export and its copy;
- a certificate of goods examination issued by the Chamber of Commerce and Industry of Ukraine or its regional branch, with the definition of the commodity code.
After submitting the documents, the applicant shall be informed that it may be granted an import quota in the volume specified in the application for a special licence.
Q11. What documents are required upon actual importation?
At the time of actual importation the following documents are required:
- original of the special licence;
- certificate of origin of goods;
- cargo (shipment) customs declaration.
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 deposit or an advance payment is required to obtain a special import licence.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The period of validity of a special licence is 90 days, except for cases of expiry of relevant quota period. If the legal entity under the granted special licence fails to import the specified volume of goods within the period specified in the licence, based on the customs authority's verification of the actual volume of imports of these goods and their remaining quantity under the special licence, the Ministry of Economy of Ukraine shall issue a new licence for the remaining quantity of goods. In such case, the importer is required to fill in an application for a new licence for the remaining quantity of goods.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No penalties are imposed for a failure to use a license or part of a license.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are not transferable between importers.
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 verifying payment of the licence fee;
- submission of a power of attorney, or of a copy of a power of attorney authorizing receipt of a licence, and submission of a document identifying the person receiving the licence if the licence is issued to the authorized representative of the legal entity.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.