Law of Ukraine
“On Regulation of Barter Operations in the Sphere of Foreign Economic Activity”
Date of Entry into Force:
April 21, 1999
The Law regulates the order of performing barter operations in the area of foreign economic activity. The Law also establishes responsibility for violations of its norms, as well as authorities and functions of state bodies of control over performing barter operations in the area of foreign economic activity.
Barter operation in foreign economic activity is considered one of the types of export/import operations, stipulated by a barter or mixed payment agreement.
While signing a barter agreement, product evaluation takes place in order to secure the equivalence of exchange; in addition determining insurance amounts, claim evaluation, and imposing sanctions is performed for customs purposes. In the cases, envisaged by the Ukrainian legislation, contract prices are determined by subjects of foreign economic activity of Ukraine in compliance with indicative prices.
Total value of products, imported and exported under a barter agreement shall be stated in foreign currency, referred by the National Bank of Ukraine to the first group of the foreign currency Classifier.
The Cabinet of Ministers is entitled to determine the list of products, prohibited for selling through signing barter agreements within foreign economic activity.
The Law establishes terms of performing barter operations in the area of foreign economic activity. Once products are exported under a barter agreement, imported products shall be brought to the customs territory of Ukraine within the term not exceeding 90 calendar days from the date of completion of customs procedures of exported products. While exporting high-liquidity products from Ukraine, maximum term of imports shall not exceed 60 calendar days. List of high-liquidity products is determined by the Cabinet of Ministers of Ukraine.
Exceeding the terms of importing goods under the barter agreement established by the Law requires obtaining a one-time individual permit by the subject of foreign economic activity; the permit is issued by the Ministry of Economy of Ukraine.
Violation of importing terms under a barter agreement results in imposing a fine in the size of 0.3 per cent of unsupplied imported product value for each day of such delay.