Companies importing goods into Ukraine will now have to pay an additional import surcharge.
On February 25, 2015 the ‘Law of Ukraine on measures to stabilize the balance of payments No.73-VIII’ went into effect. With only a few exceptions, the new law institutes a 12 month import surcharge of 5 or 10 percent on most imported goods depending on their commodity classification.
• Goods classified in product groups 1 through 24 of the Ukrainian tariff schedule will be subject to a 10% import surcharge. This product group includes food, live animals, agricultural products, etc.
• Goods classified in product groups 25 through 97 will be subject to a 5% import surcharge. This product group includes chemicals, pharmaceuticals, reagents, medical devices, etc.
There are some limited exemptions from this temporary requirement, including certain approved medical devices specifically for use in hemodialysis and the treatment of cancer patients.
The import surcharge is in addition to the current 20% Value Added Tax already applied to most imports into Ukraine. VAT is calculated on the sum of the total value and import surcharge.
A company imports a shipment of pharmaceutical products classified in product group 3004. The import is subject to a 5% import surcharge
• Invoice value = € 25,000 Euro
• Transportation cost = € 1,000 Euro
• Import surcharge = € 25,000 +€ 1000 x 5%= €1300 Euro
• VAT 20% = € 25,000 +€ 1000 + € 1300 x 20% = € 5460 Euro
Currently the new import surcharge will only be assessed over the next 12 months. Importers into Ukraine should plan to include this amount into their total landed import costs.