Customs Duty Rates in Ukraine: Rates, Features, and Calculation

Every entrepreneur importing goods into the country is required to pay customs charges. Their accurate calculation is a very difficult process, but DiFFreight experts will break everything down clearly. Today we will explain how duties and taxes are calculated and how you can clear customs independently.

What affects customs duty rates

First of all, a customs duty is a nationwide tax. Import duty is charged during import operations, and seasonal or anti-dumping duties may also apply. Without paying all charges, the cargo will not pass the border. It cannot be considered legally imported or released into free circulation.

How can you determine the customs duty rate? The key factor is the товар code in the UCG FEA (Ukrainian Classification of Goods for Foreign Economic Activity). It is based on the Harmonized System (HS Code). Each type of product is assigned a ten-digit code and a duty rate, usually from 0% to 20%.

For example, roasted caffeinated coffee 0901 21 00 00 has a duty rate of 5%. The UCG FEA covers all groups as well as their subcategories, raw materials, components, semi-finished goods, finished products, etc.

Another important term is customs value (CV). This is the “base” used to calculate duties, taxes, and excise charges. It consists of:

• the cost of the goods (price specified in the invoice);
• logistics expenses;
• insurance costs;
• other expenses related to transportation to the border: loading, unloading, transshipment.

The CV is declared by the declarant in the customs declaration. Customs authorities reserve the right to adjust it, which will be discussed later in the article.

The size of import customs duties is influenced by:

• international agreements on reduced or zero rates;
• national benefits and preferences for certain product categories;
• special conditions for applying duties (seasonal, special, and others).

Please note that to receive benefits under the EUR.1 certificate, the important factor is not where the goods arrived from, but the country of origin. The goods must be manufactured in the EU.

A customs duty is not a fixed value. We recommend customs brokerage services. Brokers monitor updates in customs legislation, know current tariffs, and handle documentation.

How customs duties are calculated during import

Now let’s look step by step at how import charges are calculated:

1. Determine the CV.
2. Select the UCG FEA code.
3. Calculate the duty: from 0 to 20% of the value according to the selected code (based on UCG FEA tables).
4. Check for benefits or preferences.
5. Complete and submit the declaration.
6. Pay customs charges (including duties) to the Customs Service account.

The process may seem simple, but the main challenge lies in determining the correct UCG FEA code. Many importers make mistakes with the material or subcategory, which can significantly change the rate.

Calculation examples:

• Solar panels from China with a CV of UAH 75,000*. A 0% rate applies, so customs duties equal zero. However, VAT is 20% — UAH 15,000.
• Textile T-shirts from Europe with a shipment value of UAH 50,000. The duty tariff is 10% — UAH 5,000. VAT will amount to 20% (UAH 11,000 calculated from the customs value plus duty), so total payments equal UAH 16,000.

*The base during import is specified in foreign currency, while charges are calculated in hryvnias. Therefore, the current NBU exchange rate is used for calculations, which may change the amount even with identical invoice figures on different days. Taxes are calculated according to the NBU exchange rate on the day the declaration is accepted.

Types of customs payments: duty, VAT, and excise tax

Now let’s explain VAT (Value Added Tax) and excise duties.

The standard VAT rate is 20%. Agricultural products are subject to 14%, some medical goods to 7%, and a small number of categories to 0%. Important: VAT is charged on the sum of the customs value and customs duty.

Excise tax applies to alcohol, tobacco, fuel, and vehicles. Rates may be ad valorem (based on CV) or specific (per unit or volume).

Additional charges include fees for:

• processing;
• storage;
• inspection;
• terminal services.

Thus, customs charges include duty, VAT, excise tax if applicable to the cargo type, as well as additional fees. If you need comprehensive international logistics services, contact DiFFreight. We not only organize transportation but also provide professional customs brokerage support.

Ways to reduce customs payments

You cannot reduce customs duties and charges through “gray” methods, such as undervaluing goods in the invoice or using an incorrect UCG FEA code. Customs authorities conduct thorough inspections and will make adjustments. Sometimes this happens mistakenly (but never in favor of the importer). What should you do in this case:

1. Obtain a written decision explaining the reasons for the adjustment.
2. Analyze the document to determine whether the reasons are justified.
3. Provide additional documents confirming your CV: contracts, payment invoices, accounting statements, catalogs, specifications, seller price lists, and a copy of the export declaration.

Inspectors review the value if there are discrepancies in data, an incomplete document package, or if the goods have a suspiciously low CV compared to similar market products. Challenging an adjustment creates additional bureaucracy, so it is better to avoid it by submitting complete and accurate supporting documents.

The customs duty rate in Ukraine directly depends on the UCG FEA code. A declarant may clear goods independently, but in practice brokers are more often involved. This helps minimize mistakes and therefore saves both money and time.