The government clarified the specifics of customs duties within transportation and storage of natural gas
The Cabinet of Ministers of Ukraine has clarified the methodology for payment of customs duties when transferring (internal transit) natural gas by pipeline system, in particular for needs of storage in the "Customs warehouse" regime. Stipulated information is contained in the Government Resolution № 415 of May 27, 2020.
Transferring of natural gas by passable and internal transit through the customs territory of Ukraine, including for its further storage in the customs regime "Customs warehouse", will be carried out on condition of obligatory granting to customs authorities of security of payment of customs duties. The declarant provides these guarantees. If the customer of storage services is a resident of Ukraine, he is the declarant. Gas Transmission System Operator of Ukraine LLC shall provide declaration services to non-resident companies.
At the same time, the Customs Warehouse regime prescribes further storage of natural gas without payment of customs duties and VAT for 1,095 days.
The algorithm for registration of natural gas transferring to gas storage facilities and its subsequent placement in the customs regime "Customs Warehouse" for residents of Ukraine from June 1, 2020 shall be as following:
- JSC Ukrtransgaz forms a periodic customs declaration type IM 74 (customs warehouse).
- Execution (on one's own) of a periodic customs declaration of type TR81 (internal transit with a guarantee) simultaneously with the submission to customs authorities the security of payment of customs duties in the amount of at least 20% of the placed natural gas customs value.
The algorithm for registration of natural gas transferring to gas storage facilities and its subsequent placement in the customs regime "Customs warehouse" for non-residents from June 1, 2020:
- JSC "Ukrtransgaz" draws up a periodic customs declaration type IM 74 (customs warehouse).
- The GTS operator of Ukraine draws up a customs declaration type TR81 (internal transit with a guarantee) simultaneously with the provision of customs authorities to ensure payment of customs duties in the amount of at least 20% of the placed natural gas customs value.
The procedure for drawing up a periodic customs declaration type IM 74 (customs warehouse) does not change.
We remind that previously JSC Ukrtransgaz drew the attention of the Government and the State Customs of Ukraine to the ambiguity of the interpretation of the Resolution of the Cabinet of Ministers No. 979 dtd. 27th of November 2019, which amended changes to the Resolutions of the Cabinet of Ministers No. 450 and No. 461 dtd. 21th of May 2012 on the financial security of customs payments in the amount of 20% of the placed natural gas customs value.
As result of negotiations, the proposals of JSC Ukrtransgaz were taken into account in the resolution of the Cabinet of Ministers No. 415 dtd. 27th of May, 2020.
Contact number for documenting of the customs declaration of OGTSU (the TSO): +380 (50) 412-62-60, Konstantin Frolov
Contact number for documenting of the customs declaration from the Storage System Operator of Ukraine: +380 (44) 461-20-38, Mykola Ksendziuk
For reference
The Customs Warehouse service provided by the Storage System Operator of Ukraine (JSC Ukrtransgaz) allows both resident and non-resident companies to store gas on the territory of Ukraine for 1,095 days without paying customs duties in case of further transportation of natural gas from the territory of Ukraine. In practice, the service is implemented with the help of the TSO, which delivers gas to the virtual point of entry into the UGS, and then the SSO stores this gas.