EU-Ukraine Deep and Comprehensive Free Trade Area
The EU and Ukraine have provisionally applied an Association Agreement since November 2014. As a part of this association agreement, a Deep and Comprehensive Free Trade Area (DCFTA) has been provisionally applied since January 2016. It reduces tariffs that European firms face when exporting to Ukraine. The agreement facilitates trade by making customs procedures more efficient and by gradual approximation of Ukrainian legislation, rules and procedures, including standards, to those of the EU.
The agreement at a glance
The EU and Ukraine have provisionally applied their Deep and Comprehensive Free Trade Area (DCFTA) since 1 January 2016, as part of the broader Association Agreement (AA), whose political and cooperation provisions have been provisionally applied since November 2014. The DCFTA opens markets for goods and services on both sides, based on predictable and enforceable trade rules.
Full text and annexes of the agreement
What are the benefits for your business?
The association agreement
- makes it easier and more affordable for EU businesses to import from and export to Ukraine
- introduces a variety of benefits for your business, such as the elimination of tariffs as well as efficient and speedy facilitation of traffic through customs at international borders
The EU is one of Ukraine’s largest trading partners, which means that there are several opportunities to import and export from the EU to Ukraine, and vice versa. The key export goods are raw materials such as iron, steel, mining products, agricultural products, machinery and chemical products. Ukraine is currently working to streamline policies to benefit small businesses when trading with the EU. Small businesses can also receive support from the EU’s SME Flagship Initiative.
Tariffs
The EU-Ukraine agreement improves the competitiveness of European businesses in the Ukrainian market and vice versa. Overall, for trade in goods, the agreement eliminated the majority of tariffs – EU: 98.1% and Ukraine: 99.1%.
Industrial goods
While a large part of the tariffs on industrial goods were eliminated when the agreement came into force, transitional periods were agreed for a number of product lines.
EU
The agreement removed 94.7% of the tariff lines.
For a few goods tariffs are still gradually being eliminated by the EU with the following transitional periods
- minerals - 2019
- chemicals - 2021
- fertilisers - 2023
- wood products - 2021
- footwear - 2021
- copper articles - 2021
- aluminium articles - 2023
- cars and most motor vehicles - 2023
Ukraine
On the entry into force of the agreement, 49.2% of industrial products could enter Ukraine free of duties.
The share of EU exports liberalised by Ukraine is scheduled to increase to 96% by 2023. This further gradual elimination of tariffs concerns the following product lines
- minerals - 2023
- organic chemicals - 2019
- fertilisers - 2019
- rubber tyres - 2021
- leather articles - 2021
- textiles such as headgear - 2019
Ukraine’s motor vehicle sector will also enjoy a transitional period lasting until 2026, a result of negotiations agreed upon at the WTO in 2008.
Agricultural goods
EU
Import duties on most agricultural goods imported into the EU was reduced to zero in 2016. Tariff rate quotas apply for the rest of the agricultural goods that are not liberalised. The management of these quotas are done either on a first come first serve basis or via import licences. You can find a list of all the tariff rate quotas for both EU and Ukraine in Appendix 1 and 2 to Annex I-A.
Ukraine
Almost half of Ukraine’s agricultural goods were liberalised when the agreement entered into force, but a small number of goods are subject to a transitional period lasting until 2023.
Not all of Ukraine’s import duties will be reduced to zero
- by 2026, 8.7% of agri-food tariffs on goods such as dairy, eggs, sugar, animal oils and fats, will be subject to limited linear reductions by 20-60% - a residual tariff will be applied thereafter
- for sugars, poultry meat and pork meat, tariff rate quotas (TRQs) will be applied - goods imported within the indicated quantities are duty free
The EU-Ukraine agreement prohibits the use of export duties by both parties. However, the government of Ukraine agreed to phase out existing export duties towards certain goods by 2026, including livestock and hide raw materials, seeds of some types of oil-yielding crops and types of metal. More information on this can be found in Annex I-C of the EU-Ukraine agreement.
A specific safeguard measure mechanism is provided for Ukraine’s export lasting up to 2031. This means that Ukraine is allowed to impose a surcharge on the export duty of several goods, such as raw hide materials, sunflower seeds and types of metal, steel and copper if, during a yearly period, the cumulative volume of exports from Ukraine to the EU exceeds a trigger level. More information on this can be found in Annex I-D of the EU-Ukraine agreement.
Find the tariff rate applicable to your product in My Trade Assistant.
Rules of origin
In order to qualify for preferential treatment (lower or no Customs duty), your product needs to comply with certain rules that define its origin, the rules of origin, which are laid down in the Pan-Euro-Mediterranean Convention.
Please check the interactive “Rules of Origin Self Assessment tool (ROSA)” in My Trade Assistant to assess whether your product fulfils the rules of origin and find out how to prepare the correct documents. More information available on how to use ROSA
If you are new to the topic, you can find an introduction to the main concepts in the goods section.
Product requirements
Technical rules and requirements
The EU-Ukraine agreement provides for the harmonisation of legislation, standards and conformity assessment procedures between Ukraine and the EU. Therefore, manufacturers from Ukraine have to comply with only one set of requirements for their products to be placed on both EU’s and Ukraine’s markets.
Ukraine approximated regulations include
- the accreditation and marketing of products, which set out the modules of conformity assessment procedures
- general product safety, setting out criteria on what is to be considered when assessing whether a product is safe, and determining when to prohibit a product because it poses a serious risk to health and safety
For a list of all 27 regulations that cover the safety requirements of a wide range of products including machinery, lifts, toys, medical devices and simple pressure vessels see Annex III of the EU-Ukraine Association Agreement.
In terms of standards, Ukraine has
- been adopting international and European standards according to best practices
- committed to repealing any conflicting national standards. This includes any conflicting GOST standards (Gosudarstvenny Standart) used in post-Soviet states
How will I know that the goods I am importing into the EU conform to EU regulations and standards?
The parties’ cooperation on market surveillance and conformity assessment procedures means that if you are exporting high-risk goods such as pressure vessels, lifts and certain machinery to the EU, you only need a conformity assessment conducted by a Notified Body (laboratories or other inspection and certification bodies accredited by the Ukrainian government).
Find a list of Ukraine’s 114 appointed bodies engaged in assessment of conformity of products, all of which have been accredited by the National Accreditation Agency of Ukraine
If you want to import goods into the EU from Ukraine, you will need to go through the process of proving conformity through an EU Declaration of Conformity signed by your manufacturer. After having done so, the manufacturer can then affix the CE marking on their products where this is required.
Under the EU-Ukraine Association Agreement, an Agreement on Conformity and Assessment and Acceptance of Industrial Products (ACAA) will be concluded. This is a type of Mutual Recognition Agreement between the EU and Ukraine. Under this agreement, the EU and Ukraine will allow industrial products listed in the annexes of the ACAA and that fulfil the requirements of conformity to be placed on either market without further testing or conformity procedures.
Contacts for technical requirements
Health and safety requirements – SPS
Food safety, animal and plant health
In order for you to export from or import smoothly into the EU from Ukraine or vice versa, there are certain rules relating to plant and animal health and safety between Ukraine and the EU that you should know. The EU-Ukraine Association Agreement harmonised many SPS rules and prohibited parties from putting into place any unjustified barriers.
When it comes to animal or plant diseases, including pests, there are procedures for recognising the pest-free status of given regions. This is for trade purposes and for the notification of risks to public, animal or plant health. In the event that the importing country needs to take measures to control a serious health risk, the EU-Ukraine Association Agreement allows for provisional restrictive measures to be taken towards imports. These are, however, implemented in a manner that minimises the disruption to trade between the two countries. Find more information on the procedures in Annex VI of the EU-Ukraine agreement.
SPS control in Ukraine
The government exercises three types of border control:
Sanitary and epidemiological control
This aims to protect the country from the spread of diseases as well as to implement tests that ensure goods are compliant to the sanitary standards. This type of control is obligatory and is exercised mainly over imported food products, some consumer products and also the export of sunflower oils. Goods that fall under the category of farm produce will not be subject to sanitary and epidemiological control.
Veterinary and sanitary control
This control aims to prevent the spread of animal diseases. Veterinary and sanitary control is usually applied for exports, imports, and transit of animals, reproductive material, biological products, pathological material, veterinary preparations, animal care products, feed additives, premixes, and animal products (including meat products, eggs, milk, fish and honey).
Phytosanitary control
This type of control not only prevents the spread of pests, it is also designed to supervise quarantine regimes. Phytosanitary control is applied for exports, imports and the transit of plants and plant products (including food products), packaging, means of transportation, soil and other products that spread regulated pests.
Contacts for Sanitary/Phytosanitary Requirements (SPS)
Technical Barriers to Trade
Although technical rules are important, they can at times act as barriers to international trade and can thus be a considerable burden for you as an exporter
- if you think you are facing a trade barrier that slows your business down or prevents you from exporting, you can tell us
- report what is stopping your exports to Ukraine using the online form - the EU will analyse your situation and take appropriate action
Customs clearance documents and procedures
The agreement ensures more transparent and simplified customs procedures to facilitate trade and reduce costs for businesses.
Documents
The step-by-step guides describe the different types of documents you should prepare for customs clearance of your products.
Depending on your product, the customs authorities may require all or some of the elements below
- commercial invoice (find the specific requirements regarding its form and content in My Trade Assistant).
- packing list
- import licences for certain goods
- certificates showing your product complies with mandatory product regulations, such as health and safety requirements, labelling and packaging.
- proof of origin - origin declaration
For more certainty, you may wish to apply for Binding Tariff Information and/or Binding Origin Information in advance.
For detailed information about which documents you need to present for customs clearance for your product, go to My Trade Assistant.
Procedures for proving and verification of origin
For descriptions of how to prove the origin of your products to claim preferential tariffs and of rules relating to verification of origin by customs authorities, please refer to the section on rules of origin above.
For information on customs procedures for import and export in general, visit the website of DG Taxation and Customs Union.
Intellectual property and geographical indicators
The agreement protects your intellectual property rights when importing and/or exporting your goods to Ukraine.
Trademarks and copyright
The EU-Ukraine agreement complies with several international agreements that regulate the administration of trademarks and copyright, providing a fair and transparent system for the registration of trademarks. If an application is refused by a trademark administration, the decision must be communicated to the applicant in writing and reasons for the refusal must be provided. A trademark may be revoked if it has not been put to genuine use within 5 years in the territory in which it was registered.
Designs and patents
Under the EU-Ukraine agreement, your independently created designs that have individual character are protected through their registration for a period of up to 25 years. This will provide you with the exclusive right to use the design and prevent third parties from using, recreating, selling or importing and/or exporting it without your consent.
Geographical indications
A specific committee on geographic indicators that is set up under the EU-Ukraine agreement will monitor the implementation of the agreement in relation to intellectual property, and report to the Trade Committee.
Trademarks
Trademark applications should be filed with the Ukrainian Institute of Intellectual Property (the Ukrainian PTO), which is a state enterprise.
You will need the following documents and information if you want to file a trademark in Ukraine
- your full name
- country of incorporation
- address and WIPO country code
- an image and description of the mark you are claiming
- a description if the mark contains a word element
- an indication of the colour of the trademark
- the list of goods and/or services being applied for under the relevant Nice International Classification
- the date, country and number of the priority application or date of exhibition (if claiming priority under the Paris Convention)
- a certified copy of the priority application or document confirming the display of exhibits incorporating the trademark applied for at an officially recognised international exhibition
- a power of attorney signed by an authorised person on behalf of the applicant
The registration process is as follows
- if your application documents comply with the requirements, you will be notified of the filing date
- the documents you submitted are checked to ensure they comply with the formal requirements of the Ukrainian Trademark Act - if your application is in compliance, there is then an examination on its merits
- substantive examination - your trademark application is checked for eligibility for protection, as specified by Ukrainian law and searches for identity and similarity are carried out
Geographical indication
Firstly, in order to register for a geographical indication in Ukraine, you must submit your application in Ukrainian language. You can file the documents in a foreign language and submit a translation into Ukrainian no later than 3 months from the filing date of the application. Once your application and supporting documents have been received they will be assessed by the Ukrainian Institute of Intellectual Property.
Your application must contain the following documentation
- a request to register the appellation of origin of goods, the geographical indication of origin of goods, or the right to use the registered qualified indication of origin of goods with information about the applicant and their address
- the appellation of origin of the goods you are claiming or the geographical indication of origin of the goods you are claiming
- the name of the goods for which you are making the request for registration of the specified indication of origin or the right to use the registered qualified indication of origin
- the name and boundaries of the geographical place where the goods are manufactured and to which the particular properties, qualities or reputation relate
- a description of the particular properties, qualities, reputation or other characteristics of the goods
- data on the use of the claimed qualified indication of origin of goods on the label and in marking goods
- data on how the particular properties, qualities of reputation of goods are connected to the natural conditions or human factor of the geographical place specified
Please note that as a foreign applicant in Ukraine, you will also be expected to file further supporting documents along with your application. These documents should confirm
- the legal protection in the relevant EU member state of the qualified indication of origin of goods that you are claiming
- your right to use the qualified indication of origin of goods
Trade in services
Both the government of Ukraine and the EU have set out all their existing limitations or reservations to the supply of services with a high level of transparency. Reservations adopted by Ukraine can be found in Annex XVI-D to F.
How do you navigate through the Annexes?
The EU-Ukraine agreement contains 3 Annexes that you should be aware of when exporting. These contain reservations that Ukraine put forward for EU exporters
- Annex XVI-D provides a negative list of all of the service sectors that are subject to specific limitations when establishing a business in Ukraine. This means that you can take advantage of opportunities in all the sectors that are not listed. The limitations are divided into a list of those that apply to all sectors or sub-sectors, and a list where specific reservations are outlined per sector or sub-sector.
- Annex XVI-E provides a positive list of the service sectors where you can conduct cross-border trade in services. This list names all the sectors in which you are allowed to trade.
- Annex XVI-F lists the reservations on contractual services suppliers and independent professionals
Who can establish a business in Ukraine?
If you are
- an enterprise, the EU-Ukraine agreement allows you to establish or acquire branches of your business, or representative offices in either country
- an individual, the EU-Ukraine agreement provides you with opportunities to create and establish your business through self-employment or undertakings that are within your control
You will receive the same treatment as that given to nationals of Ukraine and vice versa. Annex XVI-D provides a list of sectors where limitations are placed on establishment.
Cross-border supply of services
If you are interested in the cross-border supply of services, you are allowed supply to Ukraine (and vice versa) with the same conditions as those given to nationals of Ukraine. The following exceptions apply
- sectors such as notary services, ownership of forests or directing educational institutions, where the government of Ukraine requires that the service provider have Ukrainian nationality, or the postal services, where the service provider must obtain a licence
- sectors completely excluded from the agreement, e.g audio-visual services, national maritime cabotage, and domestic and international air transport services - Article 92 of the EU-Ukraine agreement provides a list of these specific services
In the sectors where you are allowed market access into Ukraine (and vice versa), the EU-Ukraine agreement removes the following limitations
- a cap on the number of service providers
- this can either be done through the requirement of an economic needs test, the application of a quota system, or through laws that promote monopolies or exclusive service providers, thus limiting other service providers to enter the market
- the total value of service transactions or assets
- the total number of service operations or total quantity of service outputs
Annex XVI-E provides a positive list of the service sectors where you can conduct cross-border trade in services. This list names all the sectors in which you are allowed to trade. As a result, any services sector that does not appear in the list has limitations. Find more information on the list of service sectors in which you have market access in Annex XIV-E of the EU-Ukraine agreement.
Temporary stays
Under the EU-Ukraine agreement, you’re allowed to temporarily move to Ukraine to work as a graduate trainee, a business seller or as one of the key personnel of a company in that country. For example, if you are a senior staff member responsible for the setting up or the running of an establishment.
The temporary stay periods are as follows
- intra-corporate transferee (key personnel of a company in Ukraine (or the EU), or graduate trainees) - up to 3 years
- business visitor (e.g. travelling to establish business in Ukraine (or the EU), or a business seller) - up to 90 days in any 12 month period
- graduate trainee who is not an intra-corporate transferee - up to 1 year
If you are a contractual service provider, the EU-Ukraine agreement also creates opportunities for you in specific sectors in either country. In this regard, however, you must
- be supplying the service in question on a temporary basis as an employee of an entity that has obtained a service contract not exceeding 1 year
- possess at least 3 years of professional work experience in the sector you are offering contractual services in
- have a university degree or qualification demonstrating knowledge of an equivalent level and relevant professional qualifications
For more information on
- postal courier services, see Articles 109 -114 of the EU-Ukraine agreement
- electronic communications, see Articles 115 -124 of the EU-Ukraine agreement
- financial services, see Articles 125 – 133 of the EU-Ukraine agreement
- electronic commerce, see Articles 139 -143 of the EU-Ukraine agreement; and international maritime transport see Articles 135 – 138 of the EU-Ukraine agreement
Public procurement
Under the EU-Ukraine agreement, the EU and Ukraine commit to ensuring that you have access to the public procurement markets in each country at national, regional and local levels. This is with regard to public contracts for goods, services or construction and concessions in the traditional sectors, as well as in the utilities sector. The market opening is happening gradually under the EU-Ukraine agreement.
The agreement also makes sure that Ukrainian and EU bidders are given the same treatment when bidding for one another’s tenders.
The EU-Ukraine agreement obligates both the EU and Ukraine to ensure the following conditions are met when it comes to tendering
- calls for tender are properly published and made public on the internet. This allows any interested company access to information regarding upcoming tenders
- the information published includes the most important elements of the tender, such as the subject matter of the future contract, applicable deadlines or conditions for bidding
- there is no direct or indirect discrimination against companies coming from Ukraine or the EU that would prevent them from qualifying for the tender
- transparency and equal treatment is ensured during the whole tendering process
- the decision on the awarding of the contract is communicated to all applicants, and reasons for not being the winning bidder are provided upon request
- in case of dispute, companies have the legal right to raise issues in front of competent national review bodies
Links, contacts and documents
Contacts for technical requirements
Contacts for Sanitary/Phytosanitary Requirements (SPS)
Contacts for technical requirements
Ukrainian Scientific, Research and Training Centre for Certification, Standards and Quality
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2 Svyatoshinskaya Street, 03115 Kyiv, Ukraine Tel.: +380 44452-3396 Tel. and Fax: +380 44452-6907 E-mail: secretar.ukrndnc@gmail.com Web: http://uas.org.ua |
State Inspection for Food Safety and Consumer Protection
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174 Antonovycha Street, 03680 Kyiv, Ukraine Tel.: +380 44528-9244 |
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9/11 Arsenalna Street, 01011 Kyiv, Ukraine Tel.: +380 44254-5673 Fax: +380 44254-4393 E-mail: inform@dkrp.gov.ua |
Department for Technical Regulations of the Ministry of Economic Development and Trade of Ukraine
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12/2 Hrushevskiy Street, 01008 Kyiv, Ukraine Tel.: +380 44528-8564 Fax: +380 44528-9014 Email: dtr@me.gov.ua Web: http://www.me.gov.ua |
Contacts for Sanitary/Phytosanitary Requirements (SPS)
Ministry of Agriculture and Food of Ukraine |
24 Khreshchatyk Street, 01001 Kyiv, Ukraine Contact information for citizens' appeals: Tel.: +380 44279-8474 E-mail: zvg@minagro.gov.ua
Tel.: +380 44278-8171 Tel. and Fax: +380 44278-7602 E-mail: info@minagro.gov.ua |
Ministry of Economic Development and Trade |
12/2 M. Grushevs’kyi Street, 01008 Kyiv, Ukraine Tel.: +380 44253-9394 Fax: +380 44253-6371 E-mail: meconomy@me.gov.ua |
The Ministry of Healthcare of Ukraine |
Public Reception Office 41 Yaroslavska Street, 04071 Kyiv, Ukraine Tel.: +380 44425-0526 |
Ministry of Ecology and Natural Resources
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35 Vasilya Lipkivs’kogo Street, Kyiv 03035, Ukraine
Public reception Tel.: +380 44206-3302 E-mail: gr_priem@menr.gov.ua
Public Reference Unit Tel.: +380 44206-3115
Press centre Tel.: +380 44206-3174 E-mail: press@menr.gov.ua |
Further links
- find out more information on EU-Ukraine trade relations, EU evaluation reports and other documents
- for information on support for smaller businesses seeking to do business abroad, read the Executive Agency for Small and Medium-sized Enterprise (EASME)
- find out more about the support offered to smaller businesses seeking financial support to access markets abroad under COSME - Europe’s programme for small and medium-sized enterprises
- the European External Action Service (EEAS) also provides detailed information on EU-Ukraine relations. For an overview, you can also consult a factsheet
- Regional trade helpdesks