Draft Law of Ukraine

"On Amendment of Article 18 of the Law of Ukraine "On the Regime of Foreign Investment"

The draft suggests amendments to the procedure for importing property as a contribution of a foreign investor to the statutory fund of an enterprise with foreign investment. Particularly, the draft envisages introduction of obligatory collateral acceptance by banks of bills of exchange, which the enterprise provides to customs bodies for the amount of import duty.

The current wording of Article 18 of the Law of Ukraine "On the Regime of Foreign Investment" does not envisage such a procedure. According to the Law, foreign investment in the form of property is imported with registration of a regular bill of exchange for the amount of import duty with delay of payment nor exceeding 30 calendar days. The bill of exchange is repaid and import duty is not paid, if during this period the above-mentioned property was included into the balance of the enterprise with foreign investment. Otherwise, the enterprise shall pay import duty based upon the customs value of the imported property.

The draft suggests ensuring payments of bills of exchange through collateral acceptance in order to solve the problem of repaying tax debts on duty, which arise when applying norms of Article 18 of the Law of Ukraine "On the Regime of Foreign Investment".