Zelensky signs laws on preferential customs clearance of cars with European license plates

President of Ukraine Volodymyr Zelensky signed laws on amendments to the Tax and Customs Codes of Ukraine (No. 1402-IX and No. 1403-IX) regarding preferential customs clearance of cars with European license plates, the presidential press service said on Wednesday.

"These laws, adopted by the Verkhovna Rada on April 15, 2021, temporarily simplify the customs clearance mechanism for cars imported from Europe, and also help protect the environment from harmful emissions," the report said.

According to the documents, used cars with European registration over five years, which were imported into the territory of Ukraine by the end of 2020, are taxed at a preferential rate of value added tax and excise tax.

"The amount of excise tax will depend on the age of the car, volume and type of engine and will not depend on its value. The base rate will range from EUR 0 to EUR 150, and in most cases the cost of customs clearance will not exceed EUR 1,000," the President's Office said.

They emphasize that such cars are temporarily exempted from import duty.

"One car of one category of one owner can be cleared under the preferential mechanism," the President's Office said.

It is noted that 180 days are given for preferential customs clearance from the date of entry into force of the laws. ATO/JFO participants will be able to use preferential customs clearance for 270 days.

"Under these laws, vehicles that do not comply with the emission standards Euro-2 and higher, come from the occupying state [aggressor state] or imported from the temporarily occupied territory of Ukraine do not fall under these laws," the President's Office said.

They add that the laws come into force on the next day after publication and are enacted one month after the date of entry into force.

As reported, on April 15, the Verkhovna Rada extended the preferential customs clearance of cars with foreign registration for six months, adopting at second reading bills 4643-d and 4644-d

Source: www.en.interfax.com.ua