JTI Ukraine and Flex now eligible for the simplified customs clearance procedure
14/12/23
PwC Ukraine Customs and International Trade team helped JTI and Flex to prepare for the customs law amendments and become eligible for the simplified customs clearance procedure.
JTI is one of the largest manufacturers of tobacco products.
Flex is a leading provider of electronics manufacturing services.
To recall, the amended legislation requires presentation of goods to customs authorities for surveillance starting from 7 November for both imports and exports of goods. A thorough preparation for these amendments enabled our clients to achieve full compliance with the updated requirements and to adopt simplified interactions with customs authorities. In particular, the benefits the companies have obtained include:
- accelerated customs clearance of goods
- lower administrative expense (customs terminal fees, bank guarantee fees, cash deposit, avoided idle time)
- lower risk level
- simplified interactions with customs authorities
- stronger competitive advantage in the market
Previously, supported by PwC Ukraine, the company became the first business in Ukraine to obtain the Authorised Economic Operator (AEO) status. This authorisation requires strict customs compliance, professional preparation and strong control over customs procedures. The Company continues to develop and build an effective process management system across all levels. Professional preparation for customs law amendments will ensure security of its supply change management.
From its side, by thoroughly preparing to apply for the authorisation to use the simplifications, Flex, step-by-step, first successfully obtained all the applicable transit simplifications and eventually the simplifications under the Customs Code. The Company has confirmed its compliance with the highest standards of quality, setting a foundation to easily obtain the AEO authorisation in the future.
JTI and Flex have taken different paths, but have successfully achieved the same goal, which opens up new opportunities for them.
Vita Miroshnychenko, Head of Customs and International Trade at PwC Ukraine, commented:
“We were able to assist JTI in obtaining authorisation for applying simplifications using an accelerated procedure. We achieved that thanks to the tremendous preparatory work we completed together with the JTI Ukraine team back in 2021. Our joint efforts enabled the company to successfully complete the monitoring and, once again, confirm its compliance with the highest standards and global best practices. I am confident that the simplifications granted to the JTI team represent a powerful step forward towards positive change for Ukrainian businesses that are actively integrating in the European economic environment.
PwC has served Flex for over a decade, and it was important for our Customs team to assist the company in applying for the simplifications. Flextronics has high management standards, and obtaining the simplifications became a logical confirmation of the existing level of process management. I believe that we were able to achieve the goal thanks to the strong project management and coordinated joint efforts”.
Natalia Semenchuk, Customs Manager, JTI Ukraine, commented:
“I would like to thank PwC, our business partner in Ukraine, for the full assistance and end-to-end support of this complex project. Thanks to your team, JTI Ukraine was able to clearly structure all processes involved in preparing the required paperwork and adapt to the tumultuous changes in legislation during 2021-2023. Despite the martial law, implementation of the EU customs reforms in Ukraine is in progress and we are proud to be part of this process. Exports and imports of goods play an important role in our business. Therefore, it was important for us, in addition to the AEO status, to become eligible for the special transit simplifications and the simplifications under the CCU, which will help us avoid any additional customs formalities and streamline our logistical activities”.
Mykhailo Khoroshyi, Import/Export Manager, Trade Compliance Coordinator, Flex, commented:
“From the initial idea to the final execution, the project to obtain authorisations for simplifications took almost 2 years. Thanks to the support of our partners at PwC, a clear implementation plan and the flexibility in making joint decisions, we were able to achieve the desired target and successfully implement the simplified customs clearance, strengthening the export-oriented profile of our business and enhancing its competitive advantage in the market”.
Related content
Contact us
Vita Miroshnychenko
Senior Manager, Head of Customs and International Trade practice, PwC in Ukraine
Tel: +380 44 354 0404
Follow us
