You're reading: Poroshenko signs laws relaxing rules on Ukrainian defense imports

Ukrainian President Petro Poroshenko has signed laws to amend the Tax and Customs Code to create favorable conditions to fulfill contracts under the state defense order and agreements on the supply of defense products.

Law No. 365-VIII dated April 23, 2015, stipulates that knots, units and spare parts supplied to Ukraine for use in the production of defense items, the end consumers of which are state defense order customers, will not be subject to imports duty.

This does not apply to similar goods that originate from a country that was declared an occupant country under Ukrainian law and/or a state-aggressor against Ukraine, or if they are imported from the territory of the occupant country (aggressor).

Poroshenko also signed law No. 366-VIII dated April 23, 2015, on amendments to Article 197 of the Customs Code of Ukraine on creating favorable conditions to ensure the fulfillment of contracts under the state defense order and agreements on the supply of defense products.

Under this law, imports are exempt from taxation if they are used in the production of defense commodities ordered by a state customer, as defined by the Cabinet of Ministers.

This norm is not applicable if imports come from a country that was declared an occupant country under Ukrainian law and/or a state-aggressor against Ukraine, or if they are imported from the territory of the occupant country (aggressor).

The procedure for importing and confirming the purpose of use is defined by the Cabinet of Ministers of Ukraine.

A list of goods meant for use in the production of defense items has been defined in line with the Ukrainian foreign economic goods classification.

In February 2015 the government approved the state defense order for 2015 worth some UAH 6 billion.

Around 15 percent of funds will be allocated to buying imported weapons.