Changes to the foreign trade contracts in Ukraine | News Flash
As from January 4, 2017, FEA-contract can be concluded in written or electronic form, and for services - by adopting a public offer or invoice. It was established by the Act № 1724-VIII from March 13, 2016, with the title "On Amendments to some Laws of Ukraine regarding the elimination of administrative barriers to the export of services." Appropriate changes were made to the Laws №959 and №2709.
The definition of FEA-contract was changed.
Before the changes:
Previously, it was materially executed agreement of two or more subjects of foreign trade activities with foreign partners, aimed at the establishment, modification or termination of their mutual rights and obligations in foreign economic activity.
There was a requirement for the substantive processing of the contract.
After the changes:
Now is the agreement about the same activities, and an agreement of two or more parties, aimed at the establishment, modification or termination of civil rights and obligations, and is a contract.
According to Paragraph 13 of the Art. 1 of the Law № 959 the substantive processing of an agreement is not required.
Therefore, according to an updated version of the Part II of the Art. 6 of the Law № 959 FEA-contract - in addition to the traditional simple written form - can also be made:
In the case of export of services (excluding transport) - through the adoption of a public offering of the agreement (offer) or by electronic messaging or in a different way, in particular by an invoice, including in electronic form, for services rendered.
Based on the above mentioned, the provisions of the Law № 959 will make the procedure of FEA-contracts formation and export operations with Ukrainian entities more easier.