11:01 22.06.2021

Zelensky signs law to extend duty-free import of foreign aircraft to 110 seats until 2025

2 min read
Zelensky signs law to extend duty-free import of foreign aircraft to 110 seats until 2025

President of Ukraine Volodymyr Zelensky signed the law on amending section XXI Final and Transitional Provisions of the Customs Code of Ukraine on the extension until January 1, 2025 of the exemption of airlines from customs duties when importing foreign aircraft weighing up to 30 tonnes and passenger capacity from 44 to 110 seats.

According to the presidential press service, "the document will help support Ukrainian airlines during the transition to the use of domestically produced aircraft."

In particular, the law extends until the end of 2024 the possibility of operating in Ukraine in a temporary import regime with conditional exemption from customs payments for aircraft imported by Ukrainian airlines on operational leasing.

At the same time, according to the law, the government should take into account in the draft national budget of Ukraine for 2022 the financing of activities of the State Target Scientific and Technical Program for the Development of the Aviation Industry, in particular for the restoration of full serial production of civil aircraft in Ukraine, mastering the production of helicopters, creating conditions for maintaining the share the air transportation market for domestic manufacturers.

Reportedly, to ensure the fulfillment of the tasks set, the head of state turned to the Prime Minister of Ukraine with a relevant letter.

According to the law on the development of the aircraft industry with all the amendments made to it, by 2021 Ukrainian airlines were to switch to the use of aircraft manufactured in Ukraine.

Accordingly, otherwise, when foreign aircraft of the above parameters were imported into the territory of Ukraine under operating lease agreements, airlines would have to pay the customs duty rate and value added tax in the amount of 20% of the cost of the aircraft.

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