The Verkhovna Rada of Ukraine has passed the first reading of a new Customs Code designed to align national trade regulations with European Union standards. A total of 261 lawmakers voted in favour of the draft bill during a parliamentary session on Wednesday, August 19.
The legislation aims to modernize Ukrainian customs procedures ahead of a planned implementation in 2027. Adopting the bill will also allow Ukraine to receive 1.5 billion euros in financial assistance from the European Union.
The draft code establishes a specialized law enforcement unit within the State Customs Service of Ukraine. It also fully transitions the national framework to European Union customs terminology, authorization systems, and decision-making processes.
Financial Aid and Integration Obligations
Finance Minister Serhiy Marchenko told members of parliament that a joint team from the Ministry of Finance and the State Customs Service worked on the legislation for approximately two years. Development of the draft based on EU standards formally began in March 2024.
Marchenko explained that the overhaul introduces European approaches to customs debt declaration, guarantees, and duty exemptions. He emphasized that establishing the specialized law enforcement arm within customs is a key element of the reform package required to secure the 1.5 billion euros in EU financial support.
Danylo Hetmantsev, chairman of the parliamentary Committee on Finance, Tax and Customs Policy, described the measure as a complete European integration document. He noted that passing the legislation fulfills commitments outlined in Ukraine's international memorandums with both the EU and the International Monetary Fund.
Hetmantsev stated that securing full EU membership requires Ukraine to share a unified legal framework with the bloc. He said that European procedures, terminology, and legal standards must be fully incorporated into Ukrainian law to ensure seamless integration.
Structure of the Proposed Code
The proposed legislation is structured directly around European customs law and contains 781 articles in total. Sections I through IX mirror the structure of the EU Customs Code at both section and chapter levels.
Sections X and XI implement the provisions of specific European Union regulations, while Sections XII through XV govern rules at the national level. Sections XVI and XVII establish transitional provisions to guide customs operations until Ukraine formally joins the European Union.
The new code represents the fourth major customs revision in Ukraine's modern history. Ukraine adopted its first Customs Code in 1991 following the declaration of independence, followed by a second edition in 2002 and the current framework operating since 2012.
The draft bill must undergo further consideration in parliament before taking full legal effect, with implementation targeted for 2027.
