Draft Law of Ukraine

“On Amendment of Article 1 of the Law of Ukraine “On Procedure for Making Settlements in Foreign Currency”

In accordance with this draft, Article 1 of the Law of Ukraine “On Procedure for Making Settlements in Foreign Currency” is to be added with regulations determining the procedure for making settlements in foreign currency with Ukrainian resident exporters of products of the national mechanical engineering industry.

In particular, foreign currency receipts of residents, who export the above products, shall be deposited in currency accounts within the payment periods indicated in contracts, but not later than 180 calendar days from the date of customs clearance of the exported mechanical engineering products.

If mechanical engineering products are transported by sea, the term, within which payments in foreign currency are to be received by residents, will be calculated from the date of issuance of a bill of lading. Individual license of the National Bank of Ukraine will be required to exceed this term.

In accordance with current legislation, currency proceeds are to be deposited in currency accounts within 90 days. This period may be extended provided that contracts on production cooperation, consignment, complex construction, operational and financial leasing, delivery of high-tech products and special purpose products are fulfilled.

This draft is aimed at simplifying the procedure of exportation of mechanical engineering products to those countries where currency conversion, due to valid reasons, is a time-consuming process.