0% customs clearance during the war in Ukraine: how will it work?
The dream of many Ukrainians has come true in the past. However, under completely different conditions than we would like. Parliament has passed a law that temporarily suspends all customs duties for the duration of martial law. After the Presidentʼs signature and publication in the official press, you will have to pay only for registration at the service center of the Ministry of Internal Affairs. We tell you how it will work in practice.
- Is it really 0?
Yes, really zero. Complete zero on duty, excise and VAT. This is exactly what the law says.
- For how long are the new conditions?
Until the end of martial law. However, according to experts from the Institute of Car Research, we will not return to the old system of customs clearance. There will be no complete zero, but liberalization is for sure. This is a requirement of time. Although, this is still our assumption.
- Is it only for cars for the needs of the Armed Forces?
No, for everyone. Conditions for importing cars for the needs of the Armed Forces have been simplified even earlier, the set of documents is minimal, and procedures are simplified as much as possible. It is a question of customs clearance of cars for personal use. There are no restrictions on the use of the machine after customs clearance.
- Exactly for everyone?
So. But payments are completely canceled for individuals. That is, customs clearance "for the company" is not required.
- Will they be forced to pay "in full"?
No, the law has no retroactive effect. This is not a deferral of payments, but a cancellation. There is no obligation to pay extra.
- Are there any restrictions?
As of today, there are restrictions on environmental standards — not lower than "Euro-2" for cars and not lower than "Euro-5" for trucks and buses.
- Do I need a certificate of conformity?
Yes, this document is required.
- What else do you need to pay?
Contribution to the pension fund in the amount of 3% to 5% of the market value of the car, before the first registration. And also pay the cost of the registration certificate and license plates.
- And how to buy a car abroad, if men aged 18-60 "do not leave"?
The law does not require you to cross the border in person. The car can be imported for you by another person who has the right to leave. A notarized power of attorney from you will suffice. Even a foreigner can bring a car. You can also use the delivery truck.
- And how to choose a car, buy and pay for it?
Auctions and other resources allow you to buy a car abroad without leaving home. You can ask for help from acquaintances of foreigners or Ukrainians who have temporarily gone abroad. Or professional companies can help.
- Why such a decision?
According to preliminary estimates of experts, due to hostilities in Ukraine lost about 500 thousand cars. Another 300,000 left the territory of Ukraine. In total, about a million cars left the active part of the fleet. The purchasing power of Ukrainians has decreased, and there are no domestic car manufacturers in Ukraine. The law will allow Ukrainians who have lost a car but need it to buy it abroad.
- Are cars getting cheaper in Ukraine?
So. But not all models are sharp. The process will take place gradually. There will be no sharp collapse. Gradually, the old part of the fleet will be replaced by a newer one.
- And what about budget losses?
This issue has been relevant before. Today, the question is how to survive the war and resume economic activity. As it turns out, cars are often an opportunity to survive and make a living. Taxes should be levied on profits, not by raising the barrier at the border.
- What are the other advantages of the law?
Reducing corruption at customs. There will be nothing more to give and demand bribes, because the customs value will not affect anything. As well as the lack of need for other "services", such as the manufacture of fictitious contracts of sale and other services of various "solutions".
- So you can already drive a car?
As of April 1, 2022, project of the law №7190 was passed by Parliament. The new conditions will take effect after the Presidentʼs signature, the day after the official publication of the text of the Law. We are waiting.
The practical instructions on customs clearance of cars under the new law will be published immediately after the registration of the first "duty-free" car.