Ukraine's Fiscal Service: Owners of non-cleared cars with foreign registration to be fined from Aug 22

Thus, this preferential regime will end on August 22, rather than on August 24, as previously reported.

The State Fiscal Service (SFS) of Ukraine says new fines for owners of vehicles with foreign registration plates who violated the rules for customs clearance of their cars will come into force on August 22, 2019.

Changes voted by Ukrainian MPs provide for the extension of the preferential regime for another 90 days, during which the owners of such cars will not be fined. Thus, this preferential regime will end on August 22, rather than on August 24, as previously reported.

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New sanctions will come into effect from August 22:

- If the time of vehicle delivery to the border exceeds from 20 to 30 days, the owner shall pay a fine of UAH 85,000 (US$3,227).

- If the period exceeds 30 days, the sanctions envisage a fine of about UAH 170,000 ($6,454) or the confiscation of such cars.

- Similar amounts of fines are envisaged for excess of the deadlines for the temporary importation of vehicles for personal use and commercial purposes.

- In addition, the responsibility is provided for the transfer of vehicles with foreign registration plates in possession or disposal of another person, as well as its use for commercial purposes. Such violation entails the imposition of a fine of two thousand non-taxable minimum incomes of citizens, or UAH 34,000 ($1,292).

On May 6, some 236 Ukrainian MPs voted for the said changes, when the period during which the owners of such vehicles are exempted from fines was extended for another 90 days until August 24, 2019.

On November 23, 2018, Ukrainian President Petro Poroshenko signed a law that simplified the procedure for customs clearance of cars, in particular with European registration plates. The law increased responsibility for violations of the rules for customs clearance of such vehicles.

The period for preferential customs clearance of cars with foreign registration (with 50% discount) expired on February 22, 2019. Over this period, over 124,000 vehicles have passed customs clearance. Owners of such cars paid UAH 7.67 billion ($291.2 million) to the national budget.