The Law of Ukraine

“On the Main Principles of State Supervision (Oversight)
in the Area of Commercial Activity”

Date of entry into force:
December 26, 2007

The present Law shall identify legal and organizational principles, the main principles and the procedure for carrying out state supervision (oversight) in the area of commercial activity, powers of bodies of state supervision (oversight) and their officials, as well as rights, obligations and responsibility of business activities at the time of carrying out state supervision (oversight).

State supervision (oversight) shall be the activity of central bodies of executive power authorized by the law, their territorial bodies, local government bodies, and other bodies (hereinafter referred to as bodies of state supervision (oversight)) within the limits of powers envisaged by the law with respect to revealing and preventing violations of the requirements of the legislation by business entities and providing for the interests of the society, in particular appropriate quality of products, works and services and acceptable level of safety for the population and for the natural environment.

Article 3 of the present Law shall determine that the main principles of state supervision (oversight) shall be:
  • the priority of safety in issues related to the life and health of a human, the functioning and the development of the society, the habitat for the residence and vital activities as compared to any other interests and objectives in the area of commercial activity;
  • controllability and accountability of a body of state supervision (oversight) to the relevant government bodies;
  • equal rights and legal interests of all business entities;
  • guarantees for the rights of a business entity;
  • objectivity and impartiality in the process of carrying out state supervision (oversight);
  • the availability of grounds specified by the law for carrying out state supervision (oversight);
  • openness, transparency, planned and systemic nature of state supervision (oversight);
  • inadmissibility of duplicated powers of bodies of state supervision (oversight);
  • non-interference of a body of state supervision (oversight) with statutory activities of a business entity, if such an activity is carried out within the limits of the law;
  • responsibility of a body of state supervision (oversight) and its officials for damages inflicted upon a business entity as a result of violating the requirements of the legislation;
  • the adherence to terms and conditions of international agreements and treaties of Ukraine;
  • independence of bodies of state supervision (oversight) from political parties and any other associations of citizens.

Article 4 of the present Law shall establish that state supervision (oversight) shall be carried out at the place where commercial activity of a business entity or its detached departments is carried out or at the premises of a body of state supervision (oversight) in the instances stipulated by the law.

State supervision (oversight) may be carried out in complex by several bodies of state supervision (oversight), if their powers for implementing or for participating in complex or comprehensive measures are provided for by the law. Such measures shall be implemented based on a joint decision of heads or the relevant bodies of state supervision (oversight).

In the instance when a norm of the law or some other regulation or a piece of legislation allows ambiguous interpretation of rights and obligations of a business entity or a body of state supervision (oversight) and its officials, the decision shall be made in favor of such a business entity.

For the purpose of clearing up the circumstances that are important for the full implementation of a measure, officials of a body of state supervision (oversight) shall examine territories or premises that are used for carrying out commercial activity, as well as any documents or objects, if this is stipulated by the law.

At the time of carrying out state supervision (oversight), officials of a body of state supervision (oversight) shall keep commercial secret of a business entity.

Article 5 of the present Law shall identify the grounds and the procedure for implementing planned and scheduled measures to carry out state supervision (oversight).

Planned and scheduled measures shall be implemented according to annual or quarterly plans that shall be approved by a body of state supervision (oversight) before December 1 of the year preceding the planned year or before the 25th day of the last month of a quarter preceding the planned quarter.

Bodies of state supervision (oversight) shall implement planned and scheduled measures of state supervision (oversight), provided they have sent a written notification to a business entity about implementing a planned or scheduled measure not later than ten days prior to the implementation of such a measure.

The deadline for implementing a planned or scheduled measure shall not exceed fifteen working days for business entities and five working days for small business entities, unless otherwise is envisaged by the law.

According to Article 6 of the present Law, the grounds for implementing off-schedule and unplanned measures of state supervision (oversight) shall be:
  • the submission of a written application by a business entity to the relevant body of state supervision (oversight) for the implementation of a measure of state supervision (oversight) upon their request;
  • the detection and confirmation of inauthentic data that were indicated in documents of mandatory reporting that were submitted by a business entity;
  • the examination of how a business entity fulfills prescriptions, instructions or other administrative documents related to eliminating violations of the requirements of the legislation that were issued based on the results of implementing scheduled and planned measures by a body of state supervision (oversight);
  • an application of private individuals and legal entities related to the violation of the requirements of the legislation by a business entity. In this instance, an off-schedule or unplanned measure shall be implemented only when there is an agreement of the relevant central body of executive power for its implementation;
  • the failure of a business entity to submit, within the established deadline, documents of mandatory reporting without valid reasons, as well as written explanations of the reasons that prevented the submission of such documents.

The deadline for implementing an unplanned or off-schedule measure shall not exceed ten working days for business entities and two working days for small business entities, unless otherwise is envisaged by the law.

Article 7 of the present Law shall establish that, for implementing a planned and scheduled measure or an unplanned and off-schedule measure, a body of state supervision (oversight) shall issue an order that shall include the name of a business entity that shall be subject to such a measure and the subject of such an examination.

Based on this order, a certificate (directive) for the implementation of such a measure shall be executed that shall be signed by the head or deputy head of a body of state supervision (oversight) and shall be verified by a seal.

Based on the results of implementing a planned and scheduled measure or an unplanned and off-schedule measure, an official of a body of state supervision (oversight) shall draw a report in the instance of revealing violations of the requirements of the legislation. Based on this report, a prescription, instruction or some other administrative document related to eliminating violations revealed at the time of implementing such a measure shall be drawn up within five working days from the date of completing such a measure.

Articles 8-9 of the present Law shall identify rights, obligations and responsibility of bodies of state supervision (oversight), their officials and functionaries at the time of carrying out state supervision (oversight). Rights, obligations and responsibility of business entities at the time of carrying out state supervision (oversight) shall be written into Article 10-12 of the present Law.

According to Article 13 of the present Law, the head of a body of state supervision (oversight) or their deputy may make a decision on selecting specimen products. Such selection shall be made by an official of a body of state supervision (oversight) in the presence of the director of a business entity or an individual authorized thereby and shall be authenticated by a document on the selection of specimen products. The rules for selecting specimen products shall be approved by the Cabinet of Ministers of Ukraine. Based on the results of selecting specimen products, the relevant official of a body of state supervision (oversight) shall draw up a document on the selection of specimen products. Expenditures related to selecting, delivering and carrying out expert examination (testing) of specimen products shall be financed at the expense of a body of state supervision (oversight).

Article 17 of the present Law shall envisage that, based on a decision of the head of a body of state supervision (oversight) or their deputy, an expert examination (testing) may be appointed to clear up issues related to carrying out state supervision (oversight). The deadline for carrying out such an expert examination (testing) shall constitute 14 working days from the date of making a decision on the appointment of an expert examination (testing). In the instance of a disagreement with the results of such an expert examination (testing), the relevant business entity shall have the right to appeal them in court according to Article 18 of the present Law.

Article 19 of the present Law shall specify that bodies of state supervision (oversight) shall provide written consultations to a business entity on issues of carrying out such supervision (oversight) in response to a written inquiry of such a business entity.

According to Article 20 of the present Law, community organizations shall have the right to protect rights and legal interests of business entities. Business entities may involve third persons for the purpose of protecting their rights and legal interests in the course of implementing measures of state supervision (oversight). Such persons shall have the right:
  • to be present at the time of implementing measures of state supervision (oversight);
  • to familiarize themselves with documents and materials that are related to carrying out state supervision (oversight);
  • to represent interests of business entities in bodies of state supervision (oversight) according to the procedure established by the law;
  • to fulfill other actions in the interests of business entities.

Article 21 of the present Law shall envisage that a business entity shall have the right to appeal a decision of bodies of state supervision (oversight) to the relevant central body of executive power or to a court.
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