Customs Platform Ukraine-EU 2022: Application of NCTS Strengthens the Security of Customs Transportation and Promotes the Development of International Trade

On October 5, the first Customs Platform: Ukraine-EU 2022 devoted to the launch of the Common Transit Procedure (NCTS) in Ukraine, European Integration and Security in the conditions of full-scale Russian invasion took place in Kyiv.

The event was dedicated to the entry into force of the Convention on the Common Transit Procedure (NCTS), sometimes also called “Customs Visa-Free regime”.

“It is important to realise that Ukraine, with the support of international partners, has accomplished an incredible feat in the shortest possible time: on August 25 of this year, Ukraine received an official invitation to join two Customs conventions and the international application of NCTS, which is already commonly named Customs Visa-Free. Already on October 1, Customs Visa-Free for Ukraine started to work: the first cargoes crossed the border of Ukraine in both directions according to the NCTS joint transit procedure,” emphasised Sergii Marchenko, Minister of Finance of Ukraine, during the opening of the event.

The Minister highlighted the relevance of the Convention on the NCTS common transit procedure in the context of the development of international transportation and improving the security of crossing the state border under martial law.

His speech was followed by the intervention of Paolo Gentiloni, European Commissioner for Economy.

“Never have the ties between Ukraine and the EU been closer than today. Step by step, Ukraine is moving further along the path that will lead to its accession to our Union. I want to congratulate Ukraine on its entry to the Common Transit Convention, which means that customs transit procedures with the EU are now much simpler and more efficient. I am confident that this will not only facilitate, but actually boost trade between the EU and Ukraine. We will work closely together with the Ukrainian authorities to ensure that this opportunity delivers maximum benefits in the coming months and years”, Commissioner Gentiloni mentioned.

Member of Parliament of Ukraine, Chairman of the Parliament of Ukraine Committee on Finance, Tax and Customs Policy Danylo Getmantsev spoke about the experience of synchronising the work of the Parliament and the Government, and legislative support for Ukraine’s accession to customs conventions.

“The implementation of all provisions for joining the NCTS into Ukrainian legislation was carried out in recent months thanks to the coordinated and intensive work of all branches of the Government and international partners. I would like to remind you that we have been getting closer to Customs Visa-Free since 2016, but real steps have started since 2019. We have set ourselves an ambitious goal: in December 2024 – membership in the EU. And on this path, all our actions on the implementation of the EU legislation should take place at exactly the same pace and in exactly the same format as it happened with “Customs Visa-Free”. This is a great example and a unique opportunity for businesses,” emphasised Mr Getmantsev, MP.

The Customs Platform was also attended by Rémi Duflot, Deputy Head of EU Delegation to Ukraine, Bartosz Cihotski, Ambassador Extraordinary and Plenipotentiary of the Republic of Poland to Ukraine, customs attachés of embassies in Ukraine, Vladyslav Suvorov, Deputy Head of the State Customs Service, experts of the EU4PFM and Reform Support Team of the Ministry of Finance, representatives of businesses and business associations.

Rémi Duflot, Deputy Head of the European Union Delegation to Ukraine highlighted that a common transit procedure became a touchstone for the subsequent establishment of common customs processes and all these changes clearly demonstrate the country’s commitment to European integration in the customs sphere.

“On October 1, at 9:32 a.m., the first car crossed the Ukraine-EU border under the common transit procedure. This is a significant step forward not only for trade integration, but also for the functioning of our Solidarity Lanes. I would like to congratulate all Ukrainian authorities who made possible this admirable achievement during the war times. How important is the application of common transit to Ukraine? This is key to facilitate trade between the EU and Ukraine and increasing its volume. Ukraine has taken a big step to get closer to the EU in customs area after having received the candidate status. However, the journey just begins and a lot remains to be done. The EU is ready to accompany Ukraine on this path,” noted the Deputy Head of the EU Delegation to Ukraine.

A separate panel was dedicated to the practice of using the common transit procedure (NCTS) – new experiences, business opportunities, perspectives, and recommendations. The participants emphasized the importance of Ukraine’s accession to the Conventions, and also had the opportunity to discuss in offline and online formats the issues of customs transformation and accession to international conventions under martial law and the prospect of Ukraine’s accession to the European Union.