Ukraine sets preferential import duty rates for some threads and fabrics
In Ukraine, preferential import duty rates have been set for some light industry goods.
The Verkhovna Rada adopted the relevant draft law №4410 as a basis and as a whole.
307 parliamentarians voted in favor of the document.
Changes were made to Section XI of the Customs Tariff of Ukraine.
The law provides for preferential import duty rates:
- in the amount of 0% for raw materials that aren't produced in Ukraine (yarn, fibers, threads 50-53 of the UKT FEA group);
- in the amount of 1 to 8% for finished products: fabrics, felt and cloth, woven nets, twine, and ropes.
According to the document, the full import duty rates are increased to 10% on light industry goods for those product subcategories according to the UKT FEA, where such rates are less than 10%.
"Also, when preparing the draft law, the Ministry of Finance considered the proposals of the Ministry of Economy on the need to maintain the current preferential rates of 5% for mixed cotton fabrics (code 5211), to protect domestic producers, as these fabrics are produced in Ukraine," the statement said.
"Implementing the draft law's provisions will help stimulate the development of the light industry by reducing import duties on raw materials, on the one hand, and accelerate customs clearance of light industry goods without laboratory tests, on the other hand, through the unification of rates for uniform goods," Deputy Finance Minister Yurii Drahanchuk said.
The provisions of the draft law don't apply to goods originating from countries Ukraine has concluded free trade agreements.
The law will come into force on July 1, 2021.
To recap, earlier the profile committee recommended approving this law as a basis and as a whole.
