Our laws in the field of export control regulate that the powers of export and import of military goods are provided by the Cabinet of Ministers of Ukraine. There is a Cabinet resolution No. 838 of 1996, which completely copies the entire list of documents that must be submitted to the State Export Control Service. The legislation in the field of export control is not easy, about 90 normative legal acts, but from the first stage of registration in the State Export Control Service, our employees provide assistance in understanding all these processes.

In order to obtain the authority to carry out foreign trade activities, it is enough to pass several necessary stages. First of all, register with the State Export Control Service, create an internal export control system within the company and obtain the appropriate certification in the Civil Service. Already after that, the National Export Control System, based on a collegial decision of the relevant state authorities, in particular the Ministry of Foreign Affairs, the Ministry of Defense of Ukraine, intelligence and counterintelligence agencies, which by conclution conclude that the company may be admitted for self-exportation or import military goods. The State Service for Export Control of the Enterprise of the League of Defense Enterprises of Ukraine has been known for a long time. We received a substantive letter from the League, which, through the Cabinet of Ministers of Ukraine, came to our address with the relevant proposals for amending the existing legislation. It is worth noting that these are very interesting and very relevant proposals.

We stand on the way of developing proposals for changes to the basic law, there is no point now to revise the 838th resolution, which has already historically been exhausted on some issues. Indeed, there are disadvantages, and even more so, it should be noted that the ruling was created much earlier than the last changes to the basic law. Unfortunately, no changes were made to the above-mentioned resolution. But we are now considering the position of the new legislation and, based on the introduction of amendments to the law that we propose to submit by the end of this year, I mean to submit for consideration, only interagency agreement, because for today we have received in writing proposals from all related government agencies.

I think there will be a stage of public discussion, roundtables, and we intend to submit a project by the end of the year. Of course, the next step will be to make proposals, including to modify this order, so I do not think there are any issues with this issue.

Export control, taking into account the lack of budget financing, can not hold large conferences or training events, but to date, it is fully responsive to all applicants’ requests. You can come to our service and get a full consultation; at the initial stage of filing, we will always help you to arrange all documents in an operational plan. When you receive our first official registration and permissions, it will be possible to work contactless.

I want to add that for today we are studying the world practice of the United States in order to optimize this process. The Ministry of Economic Development and Trade has identified two main strategic priorities: firstly, strict adherence to international obligations in the field of export control, and, secondly, simplification and regulation of business processes that are directly related to the licensing system, with providing administrative services. The United States is sometimes even amazed and says that the system is very good in Ukraine, but we are very liberal about our applicants. In the United States, the circle of those who are entitled to export military goods is very narrow and the procedure is very complicated in contrast to ours, moreover they do not explain the reasons for which they refuse. We have a much more democratic system, the applicant will clearly understand why he was denied and that he needs to be finalized. According to the law, the applicant has the right, having removed all the shortcomings, to reapply for the right to obtain such authority.
In conclusion, I will mention the main factors that are considered when granting authority. This is, in particular, the activity of the company on the international market for the previous year, the compliance with the international treaties and obligations of Ukraine, the absence of restrictions on cooperation with certain states, the absence of data on violations, participation in the execution of state orders, participation in co-operation in the production of goods, participation in the implementation of international treaties, the expediency of empowerment based on the interests of the state, the existence of an internal export control system, the presence of an effective marketing service, the potential Unique opportunities for market fixing and development of new models of weapons and military equipment, opportunities for advertising, exhibitions, precontractual activities, availability of export versions of documentation, availability of permits for activities related to state secrets, availability of relevant regulatory documents related to them, information about the tactical and technical characteristics of goods. The latter are generally considered in conjunction with the Ministry of Foreign Affairs, the SBU, SZR and DK “Ukroboronprom”. As well as a plan of measures for the protection of information constituting state secrets and providing legal protection of state interests during the transfer of intellectual property objects, opportunities for performance of works and services at their own expense, accounts payable and receivables, this is particularly the attention of the Ministry finance

According to such criteria, the decision No. 838 requires the applicants to submit the necessary documents. However, dear colleagues, those who have never encountered the export control system, I want to calm down: not so difficult this way. Over the last year, a large number of applicants have already gone through more than half of the procedures for obtaining these powers and for the creation of already approved draft resolutions of the Cabinet, which is waiting for its turn for consideration by the government.

Igor Savula,
Acting Chairman
State Export Control Service of Ukraine

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