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The Business Ombudsman Council provides recommendations to state bodies on the basis of individual cases and in accordance with published systemic reports. Here we have collected information on the implementation status of systemic recommendations only.

Report name
Issued recommendations
Execution status

Systemic report “Big challenges for small business”

To review the Action Plan to the SME Strategy and determine its relevance, priority and expediency.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Other CEBs

In process

To approve an updated realistic action plan for the support and development of SME, taking into account the BOC’s recommendations according to this report. The SME Action Plan should cover activities for all groups of entities (micro-, small and medium-sized businesses) and be backed by appropriate financial resources

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Other CEBs

In process

The development of the updated action plan to the SME Strategy should be based on the participatory principle, in particular, all key stakeholders both from the state and the business community representing all groups of entrepreneurs should be involved in this process. The overall focus of this document should be on creating conditions for transforming small businesses into medium-sized enterprises, as well as for more rapidly growing small businesses, enterprises with export potential or enterprises with a significant innovation component.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Other CEBs

In process

To develop the concept of creating information sharing and/or business consulting areas.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office
Ministry of Digital Transformation

In process

To introduce the practice of informing SMEs of major changes in the legislation (for example, through publication at the SME Development Office’s website) that directly set new requirements for micro- and small-sized businesses.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office
Ministry of Digital Transformation

In process

To elaborate recommendations for self-government authorities on the unified presentation/ placement of business-relevant information on their websites.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office
Ministry of Digital Transformation

In process

Since the progress tracking of the tasks related to SMEs’ export promotion and their internationalization is not provided in the SME Strategy, whereas clear quantitative and qualitative indicators namely of SMEs’ export activities are not provided in the Export Strategy, the BOC finds it necessary to recommend the MinEconomy, when determining further steps aimed at developing exports, to provide indicators that would allow monitoring changes specifically for SMEs and, when analyzing statistical data, to separate the influence of implemented tasks from the indicators of large enterprises.

Cabinet of Ministers of Ukraine
Ministry for Development of Economy, Trade and Agriculture of Ukraine

Not started

To ensure transparent and efficient functioning of the ECA in accordance with the best international practices. When taking final legislative steps to launch the ECA, it is recommended that the CMU, the MinFin and the MinEconomy carry out additional analysis of:

 

а) the level of the ECA’s capitalization and state support so that the institution could cover as many businesses as possible, including SMEs, and make their own functionality more accessible and

 

b) the support areas outlined in Art. 8 of the Law, first of all in the context of their consistency with the identified priority sectors of the Export Strategy.

Cabinet of Ministers of Ukraine
Ministry of Finance
Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To finally approve and implement the creation of a fully operational structure of foreign (trade representative) offices provided with sufficient resources and functionality to effectively support domestic businesses, including SMEs, with the gradual expansion of the geographical presence of such offices. In this context, it is deemed appropriate to ensure close co-operation of foreign agencies with the Export Promotion Office when processing requests, particularly those submitted by SMEs.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Ministy of Foreign Affairs

In process

To take steps to launch the National export web portal, its proper and regular filling with useful and accessible information for active and potential exporters, as well as introduce a separate section dedicated to promotion and using innovation opportunities by exporters, as set forth in the Action Plan to the Export Strategy.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Export promotion office

In process

To review and evaluate the relevance of unimplemented activities outlined in the Action Plan for the implementation of the SME Strategy, prioritize activities that may have a fast and significant effect on the SMEs’ access to finance and to stop implementing ineffective measures.

Cabinet of Ministers of Ukraine
Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To consider creating a section dedicated to the SMEs’ access to finance at government-based web resources, for instance, the SME Development Office’s portal sme.gov.ua. Provide aggregation of up-to-date information on funding programs and grants, relevant educational programs for SMEs.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office

Implemented

To analyze the implementation of financial and credit regional business support programs at the expense of budgetary funds that have been active since 2018, in terms of their effectiveness and to develop an optimal approach to providing financial and credit support for business entities.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To consider introducing criteria for participation in concessional lending programs according to the state policy priorities, such as:

 

• assistance in adapting to the corresponding EU standards;

 

• enterprises/projects founded by employees dismissed over the last year;

 

• enterprises registered in regions with high unemployment rate and/or low economic activity (the so-called "depressed regions").

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To enhance the implementation of measures aimed at strengthening the institutional capacity of business associations (business support organizations), in particular, the implementation of a relevant Program developed during the SME Strategy’s implementation. Prioritize measures within the Program designed to support the competitiveness and SMEs’ interest’s presentation and communication

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To prioritize the implementation of the Innovation Strategy for the period up to 2030 aimed at enhancing copyright, improving the national patent protection system and harmonizing the national patent law with the relevant EU standards, in particular:

 

• approximate technical regulation, standards, and conformity assessment;

 

• normatively regulate the process of transferring intellectual property objects;

 

• introduce state support for patenting of intellectual property of Ukrainian innovators abroad through co-financing, etc.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To promote further enhancing of the SME Development Office institutional capacity.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To encourage the development of partnership with collective actions in the private sector (e.g., Ukrainian Network of Integrity and Compliance) for creating a single mentorship platform to advise on compliance and business integrity for SMEs.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office

In process

To strengthen the educational capacity of the created platform aimed at raising companies’ awareness of international compliance standards and their implementation by the private sector, by holding country-wide events and creating a resource guide/program with success stories for SMEs’ representatives, etc.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To develop a practical compliance workshops program by engaging various stakeholders, including those in the regions, to increase overall business awareness about business integrity practices, as well as further joint development of a common minimum compliance standard (guidelines) with further SMEs’ support in implementing compliance practices.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office

In process

To initiate developing a minimum standard (guidelines) on business integrity tailored to SMEs’ compliance needs. The implementation of such a standard should lay down the necessary foundation for determining the compliance culture sustainability in Ukraine, in particular, by introducing company certification provided that they have more sophisticated and well-established compliance programs. Following the introduction of the standard with the stakeholders’ involvement, study legislation to simplify regulation for SMEs applying the compliance standard.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To properly and timely complete implementation of activities envisaged by the SME Strategy in terms of training, education aimed at developing competencies/skills and awareness-raising of SMEs in the field of business integrity.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
The SME Development Office
Other CEBs

In process

To continue maintaining an active dialogue and holding specialized forums for SMEs. At the same time, it is advisable for these entities to analyze the current state and expand preparation of step-by-step instructions with detailed information on key business processes required to start or liquidate certain types of business and to uniquely present/post information on their websites. Additionally, such information should be accompanied by interactive self-testing tools for SMEs so that they can independently check their compliance level.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Kyiv City State Administration
Other CEBs

In process

Systemic report "Administrative appeal: current state and recommendations"

While elaborating the Draft Concept on Reforming the System of the State Supervision (Control) – to consider the idea of creating special (quasijudicial) appeal bodies operating outside the hierarchy of public authorities, whose decisions (actions or inactions) are challenged, to enable handling certain types of administrative appeals.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

Systemic report "Control over controllers: status of control bodies reform implementation"

To propose amendments to the Law “On State Supervision (Control)” that would envisage having an exhaustive and mandatory list of control bodies. The amendments should stipulate that in dealing with a body not included on the list, a business entity would have the right not to allow representatives of such body to carry out any inspections.To ensure that any changes in this list would only be possible in the course of the legislative process if corresponding changes are made in the relevant laws on control bodies.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

Implemented

To continue the development of the IAS and to ensure its installation and commissioning in accordance with the current legislation by the end of 2018.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

In process

To propose amendments to applicable laws which would:-define the powers of control body officials to enter data into the IAS;-enhance personal liability of officials for entering false and/or untimely entry of information into the IAS.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

Implemented

To consider standardization of documents that the SRS issues in cases of violations by control bodies, licensing and permitting authorities.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

In process

To prepare amendments to the legislation on the licensing and permit system to eliminate conflicting provisions regarding the liability of officials of such authorities (including heads of control bodies) for failure to execute the SRS orders. In particular, these amendments should focus on eliminating violations in the following areas:-revocation of licenses;- registration of declarations of conformity of material and technical facilities with the law;-deadlines for submission of conclusions and results of examinations, surveys, and other scientific and technical assessments required for the issuance of a permit.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

In process

To draft amendments to the current legislation, particularly:-Article 5 of the Law of Ukraine "On the Licensing of Certain Types of Economic Activities" should be amended by introduction of legally binding deadlines for implementation of SRS’s orders based on decisions of Expert Appeal Council.-in Article 1 of the Law of Ukraine "On the Permit System in the Sphere of Economic Activity" a broader definition of the "permitting document" should be added, including declarations;it should also be allowed to issue permits in other than electronic form (i.e. on paper). amend Article 166-10 of the CAO regarding the establishment of liability of heads of control bodies for violations identified by the SRS when conducting control measures.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Regulatory Service

In process

Systemic report "Challenges for government and business in dealing with local government"

To regulate the issue of transferring the responsibilities and functions of the State Environmental Protection Administration in the procedure provided for in CMU Resolution No.1074 "On approving a Procedure for taking steps related to setting up, reorganizing or liquidating ministries and other central executive bodies," dated 20 October 2011.

Ministry of Finance
Ministry for Development of Economy, Trade and Agriculture of Ukraine
Ministry of Justice
Ministry of Environment and Natural Resources

Implemented
— comments: In the case of executive authorities liquidation, including territorial ones, their rights and obligations in accordance with the CMU Resolution No.1074 dated 10 October 2011, shall be transferred to another executive authority.

Systemic report "Reducing the risk of corruption and attracting investment to the construction industry"

To include regular methodological work jointly with construction managers working at regional state administrations with the commissioners of construction works in the annual action plans regarding approaches to determine the value of a procurement item through workshops, including those funded by international technical assistance programs, and to publish recommendations that will reflect a number of key rules: Where funding for the construction of an object is expected during several years, the commissioner should organize the procurement process based on the overall expected cost of the entire works and sign a long-term procurement contract with the successful bidder that establishes that the works will be ongoing for several years.In planning procurements, it should be kept in mind that the commissioner has no right to break up the procurement subject into smaller parts to avoid holding open tenders or applying Sec. 5 of Art. 2 of the Law of Ukraine “On public procurements.”To estimate the cost of procuring works, Ukraine’s normative construction documents should be used as a guide, as they set the rules for determining the value of construction, design and survey works, and feasibility analyses of the actual plans according to the domestic standards. The one mandatory document that should be used in estimating costs is the National Standard “Rules for determining the value of construction”. This standard is mandatory when estimating costs for construction covered by budget funds, the funds of state and communal enterprises, institutions and organizations, as well as by loans guaranteed by the government. Its application has to be stipulated by contract. This means that the conditions for calculating the value of a proposition and the draft procurement contract should include the use of this standard, that is, in the conditions that establish the agreed price of the awarded contract. Where participants plan to engage subcontractors to carry out works, tender bid prices should include the cost of all proposed works contained in the tender documentation, including works that will be executed by subcontractors.To prepare procurement and tender documents, the commissioner should use a finalized working design with all necessary approvals and land issues confirmed and resolved, if required. The working phases of the project should be preceded by an explanation of any repair work in compliance with the quality control system for the relevant types of infrastructure, a feasibility study, and public discussions to identify all possible risks. Where there is no finalized working design with the necessary approvals, the recommended approach is to include a tender interview procedure to negotiate with participants and clarify any issues about the project directly during the tender process.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented
— comments: Pursuant to paragraph 7, part 1 of Article 8 of the Law of Ukraine "On Public Procurement", on the MEDT's website an information resource of the Authorized Agency was created aimed at disseminating information on the application of public procurement legislation, which allows for on-line advisory advice on procurement issues, as well as get acquainted with the generalized answers prepared on the basis of common problem issues to all entities in the field of public procurement.

To propose amendments to the Commercial Code of Ukraine to change the section on subcontracting agreements for the execution of works that are drawn up in line with the Law of Ukraine "On public procurements," to require providing both the commissioner and the executors -contractors, subcontractors and engineers engaged in technical supervision - with open access to information about the progress of the works for the purpose of ensuring their accountability to the public at all stages of the procurement process, from design to completed construction and commissioning.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Ministry of Regional Development, Construction and Residential Services

Recommendation is no longer relevant

Draft amendments to the Law of Ukraine “On Public Procurements””:

 

- by adding to the basic terms in the law, in Art. 1, the concept of a consortium to ensure broader opportunities for companies to jointly submit a bid without having to establish a separate legal entity

 

- by reducing the mandatory minimum weight of the criterion “low price” from 70% to 50% for the procurement of works. When “low price” dominates the criteria while the terms of a contract are poorly defined and requirements for the subject of the purchase, this could lead to the bidder with the lowest price failing to complete the works or to complete them inadequately.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented

To take into account the necessity to amend Law of Ukraine "On public procurements" regarding publication of information on concessional tenders at the unified procurements portal in preparing the Draft Law of Ukraine "On concessions".

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented

To add to its work plans of further adaptation of public procurement legislation to the EU legislation the Directives 2014/24 on public procurements and 2014/25 on procurements by enterprises that operate in the area of water supply, power, transport and postal services. Of particular importance are the provisions of EU legislation related to public procurements of construction works, including such criteria as life-cycle cost, the influence of a company's reputation on its potential participation in procurements, the concept of abnormally low price, etc.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented

Systemic report "problems with cross-border trading in Ukraine"

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented
— comments: Part one of Article 9 of the Law of Ukraine “On the Scrap Metal” regarding obligatory registration of contracts (agreements, treaties) for the export of scrap metal was excluded based on the Law No.1455-VIII dated 12 July 2016. The resolution of the issue is foreseen by the Draft Law of Ukraine No.7497 "On Unshadowing of the Market of Metallurgical Raw Materials (on amendments to certain legislative acts concerning operations with scrap metal)" which was registered with the VRU on 17.01.2018. The Draft Law is supported by the MEDT and the representatives of the metallurgical industry. Current status - pending review.

To bring legislation on quota allocation of the scrap metal in line with Ukraine's WTO commitments and obligations connected to the implementation of the DCFTA schedule.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented
— comments: According to the Resolution of the Cabinet of Ministers of Ukraine "On approval of the lists of goods, the export and import of which is subject to licensing and quotas for 2019" of 27.12.2018, No.1136, no quotation and licensing of export (import) of scrap metal is foreseen.

To reconsider the approach to setting scrap metal export volumes to reflect industrial needs for scrap metal among iron and steel enterprises based on reliable statistical data for steel production in the previous year, projections for the current year and a detailed analysis of scrap metal consumption on the domestic market.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Recommendation is no longer relevant
— comments: (carried out annually) In accordance with paragraph 2 of the second part of Article 13 of the Law of Ukraine “On the Scrap Metal” , the central executive authority, which implements the state industrial policy in the implementation of operations with scrap metal within its powers, carries out, with the involvement of other state and non-governmental organizations, the analysis of potential reserves and makes the annual balance of generation and consumption of scrap in Ukraine.

To distribute scrap metal volumes based on supply and demand in accordance with the number of applications for export quotas from domestic enterprises.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Recommendation is no longer relevant
— comments: According to the Resolution of the Cabinet of Ministers of Ukraine "On approval of the lists of goods, the export and import of which is subject to licensing and quotas for 2019" of 27.12.2018, No.1136, no quotation and licensing of export (import) of scrap metal is foreseen.

To increase export levels whenever domestic iron and steel enterprises are fully supplied and excessive surpluses of scrap metal build up.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Recommendation is no longer relevant
— comments: (carried out annually) In accordance with paragraph 2 of the second part of Article 13 of the Law of Ukraine “On the Scrap Metal” , the central executive authority, which implements the state industrial policy in the implementation of operations with scrap metal within its powers, carries out, with the involvement of other state and non-governmental organizations, the analysis of potential reserves and makes the annual balance of generation and consumption of scrap in Ukraine.

To change the collegial approach to quota allocation currently used by the MEDT, using auctions as an alternative. Auctions can ensure minimal intervention by the regulator in the quota distribution process. Should the quota system be further used for scrap metal exports, reconsider the approach to forming the responsible Commission in the Ministry. Amend the current regulatory framework and establish public, clear and competitive procedures and rules for the allocation of export quotas for scrap metal.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented
— comments: According to the Resolution of the Cabinet of Ministers of Ukraine "On approval of the lists of goods, the export and import of which is subject to licensing and quotas for 2019" of 27.12.2018, No.1136, no quotation and licensing of export (import) of scrap metal is foreseen.

To amend Cabinet Resolution No.155 dated 15 February 2002: To draw up an exhaustive list of grounds for refusal to register export contracts to avoid any abuse of powers by MEDT officials and misinterpretations of regulatory norms; To set a time limit for the Ministry to decide on the registration of export contracts; To introduce a procedure to appeal a negative decision; To establish clear deadlines for re-registering export contracts in case of fluctuations in the world market, as provided in Para. 11 of the Cabinet Resolution.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented
— comments: The Government abolished the registration of contracts for the export of scrap metal by the CMU Resolution No.1035 dated 28 December 2012 (the CMU Resolution No.155 dated 15 February 2002 has lost its effect).

To prevent possible violations by unfair market players by no longer hand managing the business reputation of applicants; monitor international contracts by exchanging relevant information with the State Fiscal Service, including Customs.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Recommendation is no longer relevant

To study the requirements for obtaining formal conclusions on the classification of scrap metal, such as the Green List of waste materials prepared by the Trade Ministry in cooperation with the Environment Ministry. Provided that it does not contradict the Basel Convention on the Control of Cross-border Transportation of Hazardous Wastes and their Disposal, abolish the requirement for exporters to arrange such a certificate.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To draft and adopt the new edition of the Law “On Foreign Economic Activities” to reflect modern trade regulation trends and WTO commitments, and to cover all necessary provisions of EU acquis communautaire, in particular: To bring the law fully in line with WTO agreements and EU requirements, which should increase access to global markets: (a) simplifying formalities and procedures; (b) harmonizing applicable laws and regulations; (c) applying international agreements; and, (d) making a commitment to regulatory cooperation. To change the regulations for foreign trade, export/import licenses and protection measures in accordance with WTO rules and regulations. For instance, licenses should be required only for the import or export of goods that effect public security, the life and health of individuals, animals and plants and so on, in accordance with the definitions used by the EU. Based on stakeholder consultations, to reduce (a) the number of cross-border trade operations subject to licensing and (b) the number of commodity groups subject to restrictions or limitations as to export or import. To implement methods for export-import quota administration according to best practices and WTO recommendations: First-Come, First-Served; Auction Quota Rights; Give Away Quota Rights.

Cabinet of Ministers of Ukraine
Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented
— comments: The licensing of export, import of goods, which is carried out in accordance with Article 16 of the Law of Ukraine "On Foreign Economic Activity", complies with the WTO norms, in particular, the Agreement on Import Licensing (WTO), is regulated by Articles 8, 11-14, 20-21 GATT 1994.

To reduce direct contact with applicants and the number of documents that must be submitted to obtain permission for export-import. Streamline the application process in favour of using e-information in state databases instead of hard copy documents.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

In process

To publish a consolidated Official List of Goods Subject to State Export Control Service on the official website of the State Export Control Service. The Service must ensure that the List is updated regularly.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Export Control Service

Implemented
— comments: In 2017, the Export Control Service has harmonized all changes to the Single List of Dual-Use Goods subject to Export Control, which in its structure corresponds to the List of Dual-Use Items of the European Union, given in Annex I to the Council Regulation (EC) No.428/2009 dated 5 May 2009, setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items.

To ensure that the State Export Control Service complies with timeframes for state reviews and consideration of documents. To achieve this goal, complex measures can be recommended, together with the MEDT, including: introducing an integrated e-system of document flow to streamline the review process. The MEDT, as the supervisory body, can control timeframes; implementing the practice of having the causes of each delay in a state review justified before the supervisory body; applying fines to responsible managers based on monitoring by the Ministry.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Export Control Service

Implemented

To organize the system of state evaluations of goods subject to export control in a way to optimize costs, resources and time for businesses. Businesses should have access to licensed expert organizations on the territory of Ukraine. The State Export Control Service should ensure the optimal infrastructure for dual-use goods evaluations, which includes (a) licensed expert organizations in export control for all types of dual-use goods, (b) information on the official web-page, (c) awareness-raising events for the business community that engage in foreign economic activity involving dual-use goods.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Export Control Service

Implemented
— comments: The list of expert organizations that have the authority to carry out activities related to the preliminary identification of goods in the field of state export control is posted on the official website of the State Export Control Service.Awareness-raising events for the business community that engage in foreign economic activity involving dual-use goods is carried out during seminars and conferences, as well as within the framework of the “hotline”.

To draft comprehensive User Guide on Strategic Goods and Services and have it adopted by the State Export Control Service. The guide should include: (i) a description of special international regimes; (ii) an outline of the regulatory base; (iii) a list of authorized agencies; (iv) a description and categories of special goods; (v) the policy and regulations on the export, import and transit of special goods; (vi) a detailed description of licensing procedures, and so on.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
State Export Control Service

Implemented
— comments: The specified issues were regulated by the Law of Ukraine "On state control over international transfers of military and dual use goods" and the normative and legal acts adopted for its implementation. At the same time, the State Export Control Service conducts work on amendments to the current legislation in order to shorten the timing and optimize procedures for the provision of administrative services in the field of state export control, the approximation of procedures for national export control to the EU standards.

To develop a special section in the new edition of the Law “On Foreign Economic Activity” that follows WTO rules, EU legislation, and best EU practice at the national level: To publish information on penalties and sanctions. This information should include the penalties and sanctions that apply, the reason for such penalties and sanctions, the responsible authority, and when and how payment is to be made; To shorten the grounds for applying sanctions and review the variety of such sanctions, where practicable; To limit specific penalties and sanctions in connection with foreign trade to the approximate cost of the services rendered in connection with a specific import or export operation; To the penalty imposed should depend on the facts and circumstances of the case and should be commensurate with the degree and severity of the breach.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented

As a short-term solution: To develop working mechanisms to immediately notify companies about special sanctions imposed against them. The mechanism of mediation should be foreseen prior to the application of special sanctions, which can include any explanations and/or objections regarding the alleged violations. To approve a clear minimum materiality threshold for failure to comply with Laws and Regulations on foreign trade activities and formalize this through an executive Order. To reduce the maximum timeframe for reviews of individual licensing applications to any rationale number of working days, reflecting the types of foreign trade activity. To delegate individual licensing responsibilities from the Ministry to its regional offices.

Ministry for Development of Economy, Trade and Agriculture of Ukraine

Implemented