HOW TO OBTAIN AN ADVANCE RULING ON CLASSIFICATION OF GOODS IN ACCORDANCE WITH UKTZED FROM CUSTOMS?

What is an Advance Ruling on the classification of goods (AR)? It is a document, issued by the customs authority regarding goods subject to a foreign trade agreement prior to the movement of goods across the customs border, that determines the application of certain provisions of the customs legislation of Ukraine to such goods. Duly issued AR is binding on all state authorities of Revenue and Duties. An AR is issued to facilitate customs control and clearance procedures in accordance with the Customs Code of Ukraine (Article 23) and the WTO Trade Facilitation Agreement (Article 3).

Who can file a request for the issuance of an AR? A declarant (or his authorized person) is a person who makes a declaration or in whose name a declaration is made.

What is the procedure for obtaining an AR? What is the fee? The declarant shall submit to the customs authority a written request for issuance of an AR on the classification of goods. The request is further registered, considered and issued by the relevant department of the customs authority in due time. An AR is issued free of charge.

Is there a sample application form? Yes, a sample is provided in Annex 1 to the Order of the Ministry of Finance No. 650 of 30 May 2012.

The request for issuance of an AR shall be accompanied by:

1. foreign economic agreement/contract or other document used in international practice instead thereof;

2. specifications, production flowcharts;

3. photographs, product sketches;

4. approvals and certificates issued by the authorized state bodies;

5. data sheets, prospectus and technical passport of the product;

6. certificates of origin, permits, identification labels;

7. samples of goods;

8. copy of a power of attorney, if the request is filed in the name of the declarant or his authorized representative.

Where to submit the request? The request shall be submitted to a local customs office at the place of registration.

What is the timeframe for the issuance of an AR? An AR shall be issued within 30 calendar days upon receipt of the request by the customs authority. This period may be further extended up to 15 days followed by an official notice stating the reasons for such extension before the expiry of the initial 30-day period. The next day after the issuance, an electronic copy of the AR shall be entered in the Register of Advance Rulings on Classification and Coding of Goods in UKTZED (Ukrainian Classification of Commodities for Foreign Economic Activity). The Register is published on the website of the State Fiscal Service (SFS) and is updated on a quarterly basis.10

What is the validity period of an AR? An AR is valid for three years after its issuance unless the facts and conditions supporting such a ruling have changed.

What are the grounds for a refusal to issue an AR? Failure to provide all the required documents or information by the declarant, or ascertaining the fact of consideration of the declarant’s request by another customs authority with regards to identical goods. In addition, an AR is not issued (except for goods in CKD/SKD condition) in cases when the Ruling on the classification of goods was previously issued by the customs authorities and such Ruling has not been changed or annulled, and facts and conditions supporting it have not changed.

What happens next? The original and a copy of the AR11 shall be submitted by the declarant along with other documents required for customs clearance. In case of non-conformity of the goods with the information provided for in the AR, customs clearance of the goods shall be carried out on general terms in accordance with the Ukrainian legislation. In such a case, an AR is revoked by the issuing customs authority.

What are the grounds for the revocation of an AR? In accordance with Article 23 of the Customs Code, an AR may be revoked in cases where: а) it was issued based on inaccurate documents or invalid information provided by the applicant, and/or incomplete information required for adopting the said ruling that significantly affected the nature of such ruling; b) it came in conflict with the customs legislation of Ukraine due to amendments made to the latter; c) it was adopted in violation of the Customs Code.

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