Introduction of a temporary action algorithm for declaration and customs clearance of natural gas operations, which is located/released in/from Сustoms warehouse regime in UGS

We would like to inform you about the introduction of a temporary algorithm of actions for declaration and customs clearance of operations with natural gas injected into / withdrawn from the customs warehouse regime. It will be valid until the adoption of the draft law "On Amendments to certain Laws of Ukraine on the Introduction of Natural Gas Accounting and Calculations by Volume of Gas in Units of Energy" № 2553 dated as of December 16, 2019.

This algorithm will be applied EXCLUSIVELY for declaration and customs clearance of operations with natural gas and will not in any way affect the relationship between the Storage System Operator of Ukraine and customers of gas storage services. Adoption of the algorithm is necessary to resolve differences between the norms of Ukrainian legislation, which has made it impossible of conduct operations with natural gas in the customs regime "customs warehouse" since early April 2021 (more on this in the text of the letter).

1. Since April 1, 2021 while injecting natural gas in the "customs warehouse" regime, the holder of the customs warehouse shall indicate the information on the volume of gas  in units of volume (in addition to indication of natural gas volumes in the energy units) in the following documents:

• Periodic Customs Declaration (IM74), provided by the Customer as the shipping documents,
• Additional Customs Declaration (IM74), allocations provided by the Gas Transmission System Operator of Ukraine on the basis of the indicators of cross-border GMS specified in the protocols of natural gas delivery and acceptance by the carriers.
  
  2. Since April 1, 2021 while withdrawing natural gas from the «customs warehouse» regime, the holder of the customs warehouse shall indicate the information on the volume of gas in units of volume (in addition to indication of natural gas volumes in the energy units) in the following documents:
  
  

• Periodic Customs Declaration (ЕC 11), provided by the Customer as the shipping documents,
• Additional Customs Declaration (ЕC 11), allocations provided by the Gas Transmission System Operator of Ukraine on the basis of the indicators of cross-border GMS specified in the protocols of natural gas delivery and acceptance by the carriers.
  
  

We thank you for understanding the situation and apologize for the inconvenience!

We remind you that since April 1, 2021 the Energy Customs of Ukraine has started to calculate natural gas exclusively in the energy units (kWh) during the declaration and customs clearance of natural gas, placed in the Customs warehouse regime, The state body is guided by the norms established by the Law of Ukraine “On the Customs Tariff of Ukraine” № 674-IX  as of 04.06.2020. It requires the use of additional metering of natural gas in energy units.

At the same time, the draft law "On Amendments to certain Laws of Ukraine on the Introduction of Natural Gas Accounting and Calculations by Volume of Gas in Units of Energy" № 2553 dated as of December 16, 2019 has not been adopted, which provides for the transition to accounting of natural gas in energy units from May 1 of this year. It was discussed in the relevant committee of the Verkhovna Rada of Ukraine and is awaiting a second reading. Thus, the Storage System Operator of Ukraine and other market participants could not meet the requirements of the Energy Customs of Ukraine. Due to differences in the texts of legislative acts, operations with natural gas in the Customs Warehouse regime were actually blocked from 1 to 5 April 2021.

As a result of the nogotiations, initiated by the Storage System Operator of Ukraine, and conducted between the State Customs Service of Ukraine, Energy Customs of Ukraine and Gas Transmission System Operator of Ukraine, it was possible to resolve the issue of declaration and customs clearance of operations with natural gas stored in the Customs warehouse regime, through the adoption of a temporary algorithm of actions.