How to successfully start selling RES goods to Ukraine?

Exports from Poland to Ukraine are proliferating, and products from the RES (renewable energy sources) sector are increasingly popular with Ukrainian buyers. We also see this growth on the merXu platform - the number of Ukrainian buyers steadily increases. 

To make it easier for you to enter the Ukrainian market, we have prepared a list of key elements necessary to start trading between the EU and Ukraine:

EORI number registration
Determination of the customs tariff code (HS Code)
Preparation of documentation
Selection of delivery rules (Incoterms)
VAT and customs duties in Ukraine
Customs clearance
Payment
Transportation and logistics

1. Registration of EORI number

EORI (Economic Operators' Registration and Identification) is an identifier required for export transactions outside the EU, which is necessary for customs formalities.  Obtaining a number is free of charge. EORI must be active before the first shipment.  

 2 Determine the tariff code (HS Code)

Any product you ship to Ukraine must be properly classified according to the HS (Harmonized System) code system.

3 Documentation Export requirements:

Commercial invoice - translated into Ukrainian or English, including addresses, contact information, and tax identification number of both parties and the country of origin of the goods. Also, prepare a paper invoice.

CMR - international waybill, required for road transport. Goods Specification (Packing list) - contains detailed information about the goods, such as quantity for each type of goods, total gross weight, net weight, and type of packaging.

Requirements in the country of import (Ukraine)

Certificate of conformity - in some cases, certificates are required to prove compliance with Ukrainian standards. Certificate of origin of goods - required if you want to take advantage of preferential tariff rates. There is an agreement between Ukraine and the European Union regulating the issue of origin and tariff preferences. In international trade with Ukraine, the document through which the importer reduces the rate of duty is the "EUR1 movement certificate" or" invoice declaration.

Application for a shipping certificate is made by the shipper in the country of shipment.  Be sure to include the country of origin of the goods on the invoice - this affects customs formalities and fees at the place of import.

Choice of delivery rules (Incoterms)

Incoterms determine which party is responsible for the cost of transportation, customs duties, and VAT. You will determine the details when preparing the shipment.  Information about Incoterms conditions should be included in the trade document.

5 VAT and customs duty in Ukraine

Under trade agreements between the EU and Ukraine, many goods from the RES sector may be exempt from customs duty. VAT on exported RES goods is usually 0%, which is beneficial for both the seller and the buyer.

6 Customs clearance

Goods must pass export customs clearance in Poland (EU), as well as import clearance in Ukraine.

7 Payments

It is recommended to establish secure payment terms. Buyers from Ukraine can make prepayments with a 90-day deadline. A secure option for both parties is merXu protected payment (escrow), which secures transactions. 8 Transportation and logistics To ensure smooth transportation outside the EU, it's a good idea to use companies that are experienced in deliveries to Ukraine. merXu can put you in touch with an experienced customs agency or shipping company that will streamline and facilitate the entire process.

If you have questions contact us: logistic@merxu.com