WTO Trade Facilitation Agreement Conformity Assessment for Ukraine

(EIF) under subcontract to International Development Group (IDG) on the USAID Trade Policy Project in Ukraine. The main author, Mr. Farhat Youwakim Farhat, Senior Trade/WTO Advisor, prepared this document with support from Mr. Viktor Dovhan, Senior Trade Attorney, IDG, and Mr. Brian O'Shea, Senior International Trade/Customs Attorney, EIF. The assessment evaluates Ukraine's conformity with the WTO Trade Facilitation Agreement (TFA), which aims to simplify and harmonize trade procedures. The TFA consists of 14 articles, which are analyzed in detail in this document. Article 1 focuses on the publication and availability of information, including the publication of customs procedures, information available through the internet, and enquiry points. Article 2 addresses the opportunity to comment, information before entry into force, and consultations. This article emphasizes the importance of transparency and public participation in the trade facilitation process. Article 3 deals with advance rulings, which allow traders to request binding decisions on customs procedures before goods are imported or exported. Article 4 outlines procedures for appeal or review, which provide a mechanism for traders to challenge customs decisions. Article 5 focuses on other measures to enhance impartiality, non-discrimination, and transparency, including notifications for enhanced controls or inspections, detention, and test procedures. Article 6 addresses disciplines on fees and charges imposed on or in connection with importation and exportation, as well as penalties. This article aims to ensure that fees and charges are reasonable and non-discriminatory. Article 7 deals with the release and clearance of goods, including pre-arrival processing, electronic payment, and separation of release from final determination of customs duties, taxes, fees, and charges. Article 8 focuses on border agency cooperation, which is essential for effective trade facilitation. Article 9 addresses the movement of goods under customs control intended for import, while Article 10 deals with formalities connected with importation, exportation, and transit. This article emphasizes the importance of simplifying and harmonizing trade procedures. Article 11 addresses freedom of transit, which is a critical aspect of trade facilitation. Article 12 focuses on customs cooperation, including measures promoting compliance and cooperation, exchange of information, verification, and protection and confidentiality. The assessment concludes that Ukraine has made significant progress in implementing the TFA, but there are still areas for improvement. The assessment provides recommendations for Ukraine to further improve its trade facilitation procedures, including the establishment of a single window for trade facilitation, the use of international standards, and the implementation of risk management systems. The recommendations aim to enhance transparency, simplify trade procedures, and reduce costs for traders.