February 6 2004, 08:28 UNIAN

Discrepancies in Ukrainian laws prevent from active imports of grain

Ukrainian Grain Association (UZA) has informed that companies with foreign investments, which are the main importers of grain to Ukrainian market, are not eligible for the 180-day VAT payment postponement in imports of grains through issuance of bills. On February 4 UZA, according to its press-service, received the corresponding letter from the State Customs Service.

A spokesman for UZA said that the position of the customs authority had been based on discrepancies in two Ukrainian laws concerning taxation procedures, which make unclear whether or not the companies with foreign investments could be eligible for usage of VAT bills.

The Customs Service, in turn, received elucidation from the Ministry of Justice, stating that the right of deciding upon the correspondence of laws and other statutory acts of Ukraine to the Constitution of Ukraine rests only with the Constitutional Court, which is the only authority to provide official interpretation of the laws. The Customs Service has thus suggested that the Cabinet of Ministers should refer to the Constitutional Court, and stated that before the decision of the latter it will continue to perform the clearance procedures with grain, imported by companies with foreign investments, without VAT payment postponement (without application of the tax bill).

According to UZA, the discrepancies in laws are preventing the companies from active imports of grains to Ukrainian market, and delays in solution of the issue may entail complete cessation of the imports.