New Regulations on Authorised Economic Operators in the Customs Code of Ukraine

published on 19 December 2019 | Reading time approx. 2 minutes

On 7 November 2019, the changes to the Customs Code of Ukraine related to autho­­rised economic operators became effective. The changes were introduced by the Law of Ukraine “On Amendments to the Customs Code of Ukraine with Regard to Certain Matters of Functioning of Autho­rised Economic Operators” No. 141-IX. The purpose of the changes is to bring Ukraine's legislation on authorised economic operators closer to the norms and standards of the European Union. 

An authorised economic operator (hereinafter – the “AEO”) status enables business entities engaged in foreign trade activities to use a number of special customs simpli­fications and facilitations when dealing with customs formalities.

The Customs Code of Ukraine provides for two types of AEO authorisation: 

1. authorisation for customs simplifications (AEO-C); and 
2. or an authorisation for security and safety (AEO-B).

An economic operator can choose the type of authorisation and can have both autori­sations simultaneously.

The customs simplifi­cations and benefits available to an enterprise with the AEO-C authorisation include:

• provision of a comprehensive financial guarantee,
• authorisation for use of special type seals,
• simplified declaration procedure,
• clearance at the place where the economic operator is established,
• customs controls shall be carried out as a matter of priority,
• lower risk level for the purposes of customs controls,
• use of a designated lane (if available) at the border crossing point of Ukraine.

An enterprise with AEO-B authorisation is entitled to the following customs simplifications and benefits:

• authorisation for use of special type seals,
• prior notification in case of selection for physical control,
• custom controls shall be carried out as a matter of priority,
• lower risk level for the purposes of customs controls,
• use of a designated lane (if available) at the border crossing point of Ukraine, 
• use of the national AEO logo.

The AEO status can be granted to a resident entity participating in an inter­national supply chain (manufacturer, exporter, importer, customs represen­­tative, carrier, freight forwarder, customs warehouse authorisation holder). The AEO authorisation is valid in the whole territory of Ukraine, is not limited in time and is granted free of charge. The AEO authorisation can be suspended or revoked.

The benefits and customs simplifications for foreign AEOs in Ukraine and for Ukrainian AEOs abroad are gran­ted in accordance with inter­national agree­ments of Ukraine on the basis of the reciprocity principle.