Timchenko Katerina Legal advice on doing business in Ukraine

Legal News: INCOTERMS 2010

1 January 2011

In Ukraine INCOTERMS application with respect to both internal and external supplies is regulated by the relevant legislation - provisions of the Code of Commercial Procedure of Ukraine, and reference to them in a Supply Agreement makes up the essence of the agreement. However, in Ukraine the President's Decree N 567/94 dated 04.10.94 is effective too, pursuant to which INCOTERMS shall be applied in Ukraine only after the official announcement in the state printed publicity materials. Such an announcement has not yet been made as of today, therefore, the latest issue of INCOTERMS 2010 in Ukraine shall not be adhered to at the moment. The Customs of Ukraine has commented on the matter in the following way: if an external economic supply contract sets forth that the governing law is not that of Ukraine, INCOTERMS 2010 may be applied. Nevertheless, the definition of the governing law by the Customs of Ukraine is characterized by a rather desktop approach: besides the remark on the governing law that shall not be that of Ukraine, the relevant contract has to be drawn up in any other country, but Ukraine.

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