We provide advice on customs clearance of cars at reduced rates, under a new law (8487, 8488), on concessional terms or at full rate.
Europe is the leader of the world automotive industry. The market here is saturated with a large number of new and used cars, which draws the attention of buyers from different countries. Compliance with technical standards, regular vehicle inspections, their operation on modern and high-quality road surfaces makes it possible to purchase a car with mileage in good technical condition at adequate prices.
For residents of Ukraine, the search and acquisition of cars in Europe is only the first stage to possess whistle-blowing technology. When returning to the territory of Ukraine, the owner of the purchased car waits for the state border, payment of a bid bond, filling in customs declarations, passing certification, expert opinion on the market value of cars, payment of customs fees to the regional customs, first registration, payment of the pension fund. Let’s consider each stage in more detail.
Selection and purchase of cars in Europe.
The vast majority of used cars are bought in Germany, from “first hand”. Buying from a local native German, you do not have to worry about possible options for the establishment or “kiddalov” on the part of the seller, since the Germans are very punctual and sometimes even too picky to comply with the laws, which can not be said for non-native Germans, namely immigrants from eastern Europe or Asia. Buying from such vendors, we advise you to be reinsured and get the maximum guarantees for the return of German VAT when crossing the border.
The main points when buying:
- Make sure that auto meets the environmental standards of EURO-5 and above. If not specified in the data sheet, then you can check by vin code (body number) in public databases on the Internet.
- The country of production is any other than the country of the aggressor in relation to Ukraine (Russian Federation and Crimea). Information search for vin code.
Customs clearance and registration.
It is important before leaving for Europe for a car to find and establish contact with a customs broker who will take care of all the red tape with the preparation of declarations at the border and internal customs.
What documents are required when buying a car in Europe? Here is the list:
- A contract of sale or invoice, an invoice (that is, a bill of sale).
- The transit technical passport is issued for the buyer
- Export declaration (EX, odprawa celna)
The export declaration is not a prerequisite for customs clearance, but is most likely desired to confirm the value of the car and its removal from the register. When buying from an individual, an export declaration can be issued at one of the EU’s regional customs at the border with Ukraine.
When buying a car in Europe on a legal entity, it is necessary to issue a certificate of carriage EUR.1 from the seller for applying a reduced import duty rate.
After purchase, send the broker copies of all the documents to the car and make a payment of the preliminary cash deposit for the car in full amount of customs payments in calculation from the purchase price in the contract of purchase and sale (invoice, invoice). There are several options for paying customs fees:
- Before leaving Ukraine, put on the account of the customs service an approximate amount that is reserved for you and used when preparing a preliminary declaration after the purchase. In the case of buying a more expensive car from the planned one, it is possible to pay an additional payment through the client of the bank from the card account of the Ukrainian bank.
- The payment or payment of customs payments can be made by your authorized representative in any branch of the bank in Ukraine.
- Personally, when crossing the border in the bank branch.
A prerequisite for payment is the payment by the car owner or trustee.
The rest of the formalities for registration should be entrusted to the broker. The latter will tell you the number of the preliminary declaration for crossing the border, through which the customs service will have access to information on payment of customs payments and permission to pass to the territory of Ukraine.
At the internal customs inspector can request confirmation of the value of your car by independent experts. Usually this applies to cars that were bought at a price below their average market value in Europe. If you set a higher cost than your purchase, you need to make an additional payment of customs payments after recalculation from a higher cost.
The certificate of conformity is a prerequisite for the first registration of cars in Ukraine. This document also contains information on its origin and compliance with environmental standards, therefore it is advisable to pass certification before being issued at the internal customs office to confirm the country of origin and compliance with EURO-2 and above.
After passing clearance at the customs you receive a customs declaration and a customs certificate for registration at any branch of the Service Center of the Ministry of Internal Affairs in Ukraine. The first registration of cars provides for the payment of a pension fund in the amount of 3% to 5%, depending on the estimated value of your car.
How to clear a car in Ukraine in 2018, a firm or an individual?
The difference between the registration of a customs clearance for a legal entity and an individual is the payment of a customs duty. For individuals, the full rate of 10% of the car cost, for legal entities, a preferential rate of duty in 2019 from 2% in accordance with the provisions of the Association Agreement of Ukraine and the EU. An obligatory condition for applying a reduced customs duty rate is the presentation of the EUR.1 transport certificate, which is issued by the seller at its regional customs office.
If you still decide to purchase a car and register for a legal entity in Ukraine, then to successfully pass customs clearance you need to conclude an agreement with the seller to buy a car and pay an invoice or an invoice for transfer in a non-cash form. Payment of customs payments, too, must be carried out according to the transfer. In general, the process of registration for the company does not differ from the registration of individuals.
Will the customs clearance of the car on the company (legal entity) under preferential terms?
Yes it is possible. The right to preferential customs clearance has a person registered in Ukraine (physical or legal) and has an identification code of the taxpayer. During the year, such a person can bring and register only one car, the next within a year, the customs clearance of the car will be at full rate. Customs treats a person as a taxpayer, and since a legal entity and an individual have different identification numbers, even the firm and its director have the right to preferential customs clearance for one car within a year.