How to Export to Ukraine Market’s insight

The market’s insight is very important for the formal business planning and for the successful export to Ukraine as well. The main components of such insight are the following: market’s dynamics and potential, the main market’s players, national branch regulation.

Dynamics and potential

The main indicators, which characterize an attraction of a market segment, are the latent demand and accessibility.

Some Ukrainian markets demonstrate a significant dynamics and high potential of growth. So, a beer market for 10 years period (from 1996 till 2006) has increased more than at 4 times (from 60 millions till 250 millions of decalitres).

The understanding of a market development history and latent demand gives an opportunity to evaluate the dynamics of market situation development with a high likelihood ratio.

Main players

The understanding of an influence and possibilities of market players often allows to formulate precisely a market strategy and to avoid mistakes during the selection of business partners.

Depending on the branch and kind of a business the importance and consequence of following players may differ: suppliers, distributors and mediators, industrial customers, industrial interest groups, a state as regulator, professional communities and trade unions, other stakeholders.

Regulation

Import to Ukraine is regulated by the national legislation, particularly, by the Law “On a foreign economic activity” and international agreements of Ukraine. The special regime of a temporary importation is envisaged for the exhibition samples importation.

The customs tariffs are determined by the Law “On customs tariff”, where more than 10 000 tariff rates for 97 merchandise lines is confirmed. The Parliament (Verkhovna Rada) of Ukraine confirms the tariffs and they are periodically reconsidered. Today tariffs are under the process of bringing in line with WTO requirements.

During the import of products importers pay the value added tax in the amount of 20% of products and services dutiable value, which later on participates in companies’ taxation accounting.

With a view to stimulate the import, Verkhovna Rada sometimes provides preferential rates of customs duties and/or value added tax.With a view to avoid a depreciation of prices by the Government of Ukraine, the indicative prices are sometimes set and customs bodies are entitled to impose value added tax and customs duties, proceeding from indicative prices, but not from the prices mentioned in invoices.

For the customs arrangement without any problems it is necessary

• To define which certificates, licenses and permissions are necessary for the sale of products or for the granting of services in Ukraine.
• To arrange duly and to sign foreign economic contract.
• To envisage in a contract the necessary documents, which accompany the freight.
• To grant in advance copies indicated in a contract for the preparation of registration at the frontier customs and at the frontier of destination point.
• To send the documents envisaged by the contract together with a freight.

SKO Forum services relating Ukrainian markets review:

• evaluation of a capacity, dynamics and structure of the market on the grounds of open data;
• evaluation of a capacity, dynamics and structure of the market on the grounds of chargeable information;
• selection of the company, conducting of negotiations and ordering of a special market research in Ukraine;
• compilation of the main market players’  list and profile;
• compilation of the branch and market regulation review;
• analysis of the customs registration of a specific commodity item: accompanying documents, permissions, licenses, certificates;
• analysis of expenses for the import of products: duties, customs payments.