EGISTERING CONTRACTS IN UKRAINE.

SUMMARY

This article is derived from a telegraphic report dated 1 December 1995, prepared at the American Embassy - Kiev. It discusses new contract registration regulations in Ukraine.

SUBJECT:REGISTERING CONTRACTS IN UKRAINE.

INTRODUCTION

1. HEREWITH POST PROVIDES THE TEXT OF THE UKRAINIAN PRESIDENT'S NOV.7, 1994 DECREE #659/94 ON REGISTRATION OF VARIOUS TYPES OF EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS). THE DECREE WAS ISSUED IN AN EFFORT TO CUT THE GOVERNMENT BUDGET DEFICIT IN UKRAINE AND TO INCREASE THE CONTROL OVER FOREIGN CURRENCY PAYMENTS PROCEDURES.

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2. THE PRESIDENT OF UKRAINE BY DECREE ENACTS:

A. TO INSTITUTE THE REGISTRATION OF INDIVIDUAL EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS) CONCLUDED BY SUBJECTS OF EXTERNAL ECONOMIC ACTIVITY OF UKRAINE REGARDLESS OF PROPERTY FORM, AND THE SUBJECT OF WHICH ARE GOODS:
-- THE EXPORT AND IMPORT OF WNICH IS CARRIED OUT ACCORDING TO INTERNATIONAL TREATIES OF UKRAINE IN TRADE AND ECONOMIC COOPERATION, MADE ON BEHALF OF TNE GOVERNMENT AND CENTRAL AGENCIES OF THE EXECUTIVE BRANCH;
.- THE RE-EXPORT OF WHICH ARE REQULATED BY CURRENT UKRAINIAN LEGISLATION AND INTERNATIONAL TREATIES CONCLUDED BY UKRAINE;
.- OF UKRAINIAN ORIGIN AGAINST WHICH ANTI-DUMPING PROCEDURES HAVE BEEN INITIATED;
-- OF UKRAINIAN ORIGIN, THE IMPORT OF WHICH INTO FOREIGN COUNTRIES IS SUBJECT TO SET QUOTAS, QUANTITIVE LEGISLATION, AND LICENSING IN ACCORDANCE WITH THE LAWS OF THESE COUNTRIES OR THE NORMATIVE ACTS OF ECONOMIC GROUPINGS AND CUSTOMS ALLIANCES;
-- OF UKRAINIAN ORIGIN, THE EXPORT OF WHICH IS EXECUTED BY BARTER OR COUNTERTRADE OPERATIONS. TNE LISTS OF GOODS MENTIONED IN ARTICLE ONE SHALL BE SPECIFIED BY THE FOREIGN TRADE MINISTRY (MINISTRY OF EXTERNAL ECONOMIC RELATIONS) OF UKRAINE.

B. TO APPROVE THE ATTACNED REGULATIONS ON THE PROCEDURES FOR REGISTERING INDIVIDUAL EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS).
-- TO ESTABLISH THAT REGISTRATION OF EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS) SNALL BE EXECUTED BY THE FOREIGN TRADE MINISTRY AND AGENCIES AUTHORIZED BY IT. MAINTENANCE OF RECORDS FOR EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS) SHALL BE THE PURVIEW OF THE FOREIGN TRADE MINISTRY.

C. CUSTOMS CLEARANCE OF GOODS INDICATED IN ARTICLE ONE OF THIS DECREE SHALL BE EFFECTED ONLY IF A REGISTRATION RECORD CARD OF AN EXTERNAL ECONOMIC AGREEMENT (CONTRACT) ISSUED IN ACCORDANCE WITH ESTABLISHED PROCEDURES IS MADE AVAILABLE.

D. TO ESTABLISH THAT NORMATIVE ACTS PASSED BY THE FOREIGN TRADE MINISTRY IN EXECUTION OF THIS DECREE SHALL BECOME EFFECTIVE FROM THE DATE OF SIGNATURE AND SHALL BE SUBJECT TO CONSECUTIVE STATE REGISTRATION IN ACCORDANCE WITH ESTABLISHED PROCEDURES.

E. THE FOREIGN TRADE MINISTRY SHALL:
-- SET AND PUBLISH IN THE URYADOVIY KURIER (GOVERNMENT COURIER) NEWSPAPER THE LIST OF GOODS INDICATED IN ARTICLE A OF THIS DECREE AND PROVIDE ADDITIONAL PUBLISHED AMENDMENTS TO SUCH LISTS;
-- FURNISH TNE STATE CUSTOMS COMMITTEE OF UKRAINE, THE CHIEF TAX INSPECTORATE WITH INFORMATION REGARDING REGISTERED EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS).

F. THE STATE CUSTOMS COMMITTEE OF UKRAINE SHALL:
-- ON A MONTHLY BASIS PROVIDE TNE NATIONAL BANK OF UKRAINE, AUTNORIZED BANKS, AND THE CHIEF TAX INSPECTORATE WITH INFORMATION REGARDING CUSTOMS CLEARANCE OF GOODS, THE RE EXPORT OF WHICH IS EFFECTED ACCORDING TO EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS);
-- BY THE 20TH DAY OF EVERY MONTH PROVIDE THE FOREIGN TRADE MINISTRY WITH INFORMATION ON CUSTOMS CLEARANCE OF GOODS, THE EXPORT AND RE-EXPORT OF WHICH IS EFFECTED ACCORDING TO EXTERNAL ECONOMIC AGREEMENTS (CONTRACTS), INCLUDING THE FOLLOWING INFORMATION: ZUKPO CODE; REGISTRATION RECORD CARD OF THE EXTERNAL ECONOMIC AGREEMENT (CONTRACT); NUMBER AND DATE OF EXECUTION OF A CARGO CUSTOMS DECLARATION; QUANTITY OF GOODS; CODE OF MEASUREMENT UNITS, COST FOR GOODS IN USDOLLARS; CODE OF IMPORTING COUNTRY, AND "TNZED" CODE.

G. THE CHIEF TAX INSPECTORATE OF UKRAINE SHALL REPORT QUARTERLY TO THE FOREIGN TRADE MINISTRY ON FAILURES IN RECEIVING IN THE SET TIME PERIOD AND TERMS CURRENCY EARNINGS OF RESIDENTS, AS WELL AS NON-DELIVERY OF GOODS BEING IMPORTED UNDER A BARTER SCNEME.

H. THE STATE CUSTOMS COMMITTEE OF UKRAINE AND THE CHIEF TAX INSPECTORATE OF UKRAINE SHALL REPORT TO THE FOREIGN TRADE MINISTRY ON APPLYING (ACCORDING TO THE LEGISLATION OF UKRAINE) SANCTIONS SET BY THE LAW OF UKRAINE ON EXTERNAL ECONOMIC ACTIVITY (TRADE) ARTICLE 37 AGAINST SUBJECTS OF EXTERNAL ECONOMIC ACTIVITY.

I. THIS DECREE GOES INTO EFFECT FROM THE DATE OF SIGNATURE.

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3. COMMENT: BEGINNING IN OCTOBER 1994, THE GOVERNMENT OF UKRAINE (GOU) HAS ISSUED SWEEPING ECONOMIC REFORMS IN THE AREAS OF HARD CURRENCY REGULATION AND EXPORT QUOTAS AND LICENSES. GIVEN PAST ADMINISTRATIVE CONTROLS ON EXPORTS AND SIGNIFICANT CAPITAL FLIGHT FROM UKRAINE, THIS GOU DECREE SEEKS TO ADDRESS THE CONTINUING ABOVEMENTIONED PROBLEMS.

4. FOR MORE INFORMATION PLEASE CONTACT:

SENIOR COMMERCIAL OFFICER: STEPHAN WASYLKO
COMMERCIAL OFFICER: MICHAEL LALLY
C/O U.S. EMBASSY
VUL. YU. KOTSUBINSKOHO, 10
252053 KIEV, UKRAINE
TEL: (011.7-044) 417-2669, 219-1170, 219-1169
FAX: (011-7-044) 417-1419

(USFCS/KIEV/LMYKHALIUK/MLALLY) MILLER