The cooperation between Ukraine and the EU and its Member States is guided by the Association Agreement, including Deep and Comprehensive Free Trade Area (DCFTA). The political and economic provisions of the Association Agreement were signed on 21 March 2014 and 27 June 2014 respectively.
DCFTA between Ukraine and the European Union is provisionally applied since 1 January 2016.
The Association Agreement further establishes Customs Sub-Committee, which will provide a platform for enhancing dialogue on customs matters. This Sub-Committee is responsible for monitoring the convergence of legislation and procedures according to the DCFTA commitments.
Furthermore, the Association Agenda includes the jointly agreed priorities with a view to implementing the Association Agreement.
The customs cooperation with EU is also based on the Strategic Framework for customs cooperation, endorsed in May 2012.
The Strategic Framework provides three interrelated priorities, namely:
- Safe and fluid trade lanes, in particular by achieving maximum trade facilitation for reliable business with customs acting as a link in the supply chain;
- Risk management and fight against fraud, in particular to eliminate illegitimate trade by developing strong risk management and exchanging advance customs information; and
- Investment in customs modernization, in particular by achieving close convergence of customs legislation and procedures in line with the DCFTA reforms.
Working Groups have been set up under the EU Customs 2020 Program in order to oversee the implementation of the specific objectives and activities of the Strategic Frameworks.
The medium-term priorities for Ukraine include:
- accession to the Convention on the Common Transit Procedure and the Convention on Facilitation of Trade in Goods;
- implementation of the Authorized Economic Operator schemes; and
- introduction of automatic exchange of pre-arrival customs information.
Since 1 January 2019, Ukraine has started to apply the provisions of the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin including within bilateral trade with the European Union. The PEM Convention is an instrument that establishes identical rules of origin for goods used in the framework of free trade agreements between its contracting parties. The use of the PEM Convention will increase export opportunities for Ukrainian producers, in particular by decreasing the customs rates for exporting products to the countries party to this Convention, made from raw materials or components imported from other countries that are parties to the PEM Convention.