Shipowners from Turkey and Bulgaria are interested in performing cabotage operations Ukrainian seaports. This was announced by the Interlegal law firm, which has received two requests from foreign companies to study the possibility of such operations.
According to the law firm, interest in cabotage has increased because of the destruction of the infrastructure of the Donetsk Railway, which has led to a change in logistics schemes. For example, raw materials for steel mills in the Donetsk region are transported by sea from ports in Berdyansk, Nikolayev, and Yuzhny to the port of Mariupol.
For more information about the new cargo routes, read the director of the Mariupol port’s materials on the new routes for delivering raw materials to factories in the Donbass industrial region.
Coastal voyages (between ports within the country) are performed only by vessels flying the Ukrainian flag. However, the Merchant Shipping Code of Ukraine provides for certain exceptions. According to Interlegal, the Ministry of Infrastructure has issued the Metinvest and Portinvest companies special permits for transportation of raw materials on ships flying foreign flags.
Operation on foreign vessels is different from operation on vessels flying the Ukrainian flag. The former need to abide by the customs procedures for temporary admission and pay the relevant customs duties when entering the territory of Ukraine. Their size depends on the value of the vessel that the shipowner declares in the pro forma invoice.
"In most cases, the import duties are paid by the importer, and they are usually accompanied by a letter guaranteeing payment of all the required duties in accordance with the Customs Code of Ukraine. Typically, such duties are paid in advance for the entire period of the intended temporary admission, which should not exceed three years. The temporary admission regime is terminated through re-export of the merchant ship and return of the relevant deposits to the importer," said Interlegal.
In case of violation of the customs or tax laws (including if a temporarily admitted vessel is imported), fines and other payments are imposed.
