Peculiarities of the enforcement of the Law of Ukraine
The Law of Ukraine "On the establishment of the Free Economic Area "Crimea" and peculiarities of the economic activity on the temporarily occupied territory of Ukraine" came into force on September 27, 2014 and defined peculiarities of economic activity on the temporarily occupied territory of Ukraine, established the Free Economic Area "Crimea" (hereinafter - FEA "Crimea") and regulated the aspects of the legal relationships between the natural and legal persons on this territory or abroad.
In accordance with the Paragraphs 1.1, 1.2 of the Article 1 of the Law, the FEA "Crimea" is established within two administrative units of Ukraine: Autonomous Republic of Crimea and Sevastopol.
The administrative border between the territory of FEA "Crimea" and other territory of Ukraine coincides with the land administrative border between the Autonomous Republic of Crimea and Kherson region.
The Part 3.2 of the Article 3 of the Law defines that the free customs area is created within the FEA "Crimea", which by its functional type is simultaneously the customs-free area of commercial, service and industrial type in accordance with the Article 430 of the Customs Code of Ukraine.
Peculiarities of the supply of goods to/from the Free Economic Area "Crimea"
The Paragraph 5 of the Part 12.4 of the Article 12 of the Law establishes that the supply of goods from the territory of FEA "Crimea" to the other territory of Ukraine for the free turnover of goods carries out in import customs regime with the enforcement of the law of Ukraine on the state sanitary-epidemiological, veterinary and sanitary, phyto-sanitary, environmental, radiological control and other tariff and non-tariff measures.
In this case, in accordance with the Paragraph 6.5 of the Article 6 of the Law the enforcement of the tax and customs legislation the treaties, concluded between local (residence) economic entity on the territory of the FEA "Crimea" and other economic entities, are the documents used instead of foreign trade agreements (contracts).
The supply of goods, with the status of Ukrainian goods, from the other territory of Ukraine on the territory of FEA "Crimea" is equivalent to the customs regime of exports including tariff and non-tariff regulations.
Customs formalities regarding the supply of goods, the movement of vehicles for commercial purpose and individuals across the administrative border of FEA "Crimea", carried out in the relevant customs departments of Kherson and Zaporizhzhya customs.
Thus, the movement of goods from the territory of FEA "Crimea" or on the territory of FEA "Crimea" is carried out exclusively through undersigned control points of entry and exit:
- For road transport - Chongar (Salkove), Stavky (Kalanchak), Kairka (Chaplynka);
- For rail transport - Melitopol, Novooleksiyivka, Vadym, Kherson.
All others still-functioning control checkpoints of the state border of Ukraine located on the territory of Crimea and Sevastopol are temporarily shut down in accordance with the Ukraine Government's decision and movement of goods through these checkpoints is the violation of the legislation of Ukraine.
On the issue of taxation of customs duties of goods delivered on (from) the Free Economic Area "Crimea"
According to the Paragraph 6.6 of the Article 6 of the Chapter I "Free Economic Area "Crimea" of the Law, the goods which are, in accordance with the Chapter II of the Customs Code of Ukraine, completely made, partially processed or imported on the customs territory of Ukraine and put out on the market for the free turnover on the temporarily occupied territory of Ukraine shall be considered originating from Ukraine and freely moved to the other territory of Ukraine without any duties under the Chapter 42 of the Customs Code of Ukraine provided that the certificate of origin from Ukraine, issued by the Chambers of Commerce on the other territory of Ukraine.
The Chamber of Commerce of Ukraine in the letter №3482/11.1.0-8 dated 02.10.2014 informed that for the proof of origin of goods imported from the FEA "Crimea" to the other territory of Ukraine will be issued a certificate of origin form "У-1".
The columns of the certificate of origin form "У-1" fill in Ukrainian.
The forms of the certificates are produced by the printing method in 3 duplications: 1 original and 2 copies. The original has the following degrees of protection: mesh "Hilyosh" (printed pattern in the form of braided or interlaced ribbons) purple hue and numbering of each form.
The size of the form 210x297 mm and made on the white writing paper. Form number has six or seven digits and is located on the top right corner of the form.
The certificates of origin form "У-1" are certified with the stamp and signed by the authorized representatives of the Chambers of Commerce of Ukraine (except Chamber of Commerce of Crimea and Sevastopol CCI), samples of which were sent to the customs by the Ministry of revenues of Ukraine by the letter №28667/7/99-99-24-02-08-17 dated 30.12.2013.
The information about the certificate provided customs by the letter of State Fiscal Service of Ukraine №6547/7/99-99-25-02-08-17 dated 07.10.2014.
In addition, any legal entity – the resident of Ukraine, which changes (replaced) its location from the temporarily occupied territory to the other territory of Ukraine granted tax exemptions (including under the Article 271 of the Customs Code of Ukraine) of fixed assets, low value or quickly wearing items of the legal entities that replace their activities from the temporarily occupied to the other territory of Ukraine for farter economic activities, provided that these fixed assets were on the sheet balance as at January 1, 2014 for the free turnover on the territory of Ukraine.