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Changes to the foreign trade contracts in Ukraine | News Flash

16 Dec 2016

 

Changes to the foreign trade contracts in Ukraine

As of 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:

    • Electronically
    • 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 easier.

 

If you have any question, please, feel free to contact us. We will be pleased to help you!

 

Contact:

Nataliya Tadeyeva

Managing director, Accace Ukraine

Nataliya.Tadeyeva@accace.com

+380 445693310


Read more about Ukraine:
  • The President of Ukraine signed the IT industry development Law
  • Deregulation of business. Could be easier to do business in Ukraine in 2017?

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Originally established in Central and Eastern Europe in 2006, Accace ranks among the leading outsourcing and consultancy providers in the region. Engaging over 600 experts, we have vast experience with handling small to large scale, multi-country outsourcing projects and providing a comprehensive range of our services to over 2,000 customers.

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