The State Customs Service is simplifying the process of classifying goods: what will change for businesses

19 May 07:36

The State Customs Service of Ukraine continues to streamline the conditions for conducting foreign economic activity. One of the key steps has been the implementation of decisions regarding binding information on the classification of goods. This was reported by the State Customs Service of Ukraine, according to "Komersant Ukrainian"

This mechanism allows businesses to obtain an official decision from the customs authority regarding the classification of goods in advance and avoid misunderstandings during customs clearance.

What is binding information on the classification of goods

This refers to an official decision by the customs authority regarding the classification of a specific good. In effect, a business entity can obtain confirmation of which commodity nomenclature code its products fall under even before customs clearance.

This is important for importers and exporters, as the correct classification of goods affects:

customs duties;
import duty rates;
the application of preferential treatment;
permit documents;
customs clearance;
risks of disputes with customs.

Ukraine is implementing the European BTI practice

The State Customs Service notes that decisions regarding binding information on the classification of goods are a direct reflection of the European practice of Binding Tariff Information, or BTI.

This approach is widely used in the European Union. It allows businesses to work with customs in a more predictable manner, as the company receives an official position on the classification of goods even before they are cleared.

For Ukraine, this is also an important step toward harmonizing customs procedures with European standards.

What is the legal basis for the procedure?

The legal basis for the procedure is enshrined in Article 23 of the Customs Code of Ukraine. It is this article that establishes the mandatory nature of decisions regarding binding information.

In other words, a decision by a customs authority is not merely advisory. It is official in nature and must be applied during the customs clearance of the relevant goods.

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How can a business obtain a customs decision?

To obtain a decision regarding binding information on the classification of goods, the declarant or an authorized representative may apply to the State Customs Service.

The request may be submitted:

at the location where the enterprise is accredited;
or at the location where the goods are cleared through customs.

This mechanism is intended to make the process more convenient for participants in foreign economic activity.

When an examination of goods may be required

In some cases, to make a decision, the customs authority may need to conduct research, analysis, or examination of samples or specimens of goods.

This may concern issues such as:

classification of goods;
determining the country of origin of goods;
clarification of product characteristics.

At the same time, the customs authority may order such an examination only upon receiving the prior consent of the enterprise.

Which document defines the procedure

The procedure for making a decision regarding binding information is defined by the relevant Procedure, approved by Order of the Ministry of Finance of Ukraine No. 455 dated December 23, 2022.

This procedure regulates how the application is submitted, how customs reviews the documents, and how the decision is made.

Why this is important for business

For companies engaged in import or export, incorrect classification of goods can create serious problems. These may include delays at customs, additional charges, fines, or disputes with regulatory authorities.

Obtaining a classification decision in advance allows you to: