There have been changes in legislation in production and turnover of tobacco products and/or liquids used in electronic cigarettes, intended for sale in the duty-free shops, in connection with adoption by the Verkhovna Rada of Ukraine of the Law of Ukraine № 3326-IX as of 10.08.2023 "On introducing amendments to the Customs code of Ukraine and other laws of Ukraine on combating illegal turnover of tobacco products".
From 01.10.2023, the Law of Ukraine № 3326-IX as of 10.08.2023 "On amendments to the Customs code of Ukraine and other laws of Ukraine on combating illegal turnover of tobacco products" (hereinafter – Law № 3326), published on 02.09.2023, will enter into force.
Law №3326 made changes, in particular, new parts were added to Article 18 of the Law of Ukraine "On state regulation of production and turnover of ethyl alcohol, cognac and fruit alcohol, alcoholic beverages, tobacco products, liquids used in electronic cigarettes and fuel" (hereinafter – Law № 481). These parts provide that:
until termination or abolition of the martial law in Ukraine, introduced by Decree № 464/2022 of the President of Ukraine "On introduction of the martial law in Ukraine" as of 24.02.2022, approved by the Law of Ukraine № 2102-IX "On approval of Decree of the President of Ukraine "On introduction of the martial law in Ukraine" as of 24.02.2022, a prohibition was introduced on sale in the duty-free shops, as well as production for such purposes of tobacco products and/or liquids used in electronic cigarettes;
in case that, as of 01.10.2023, manufacturers have residues of tobacco products and/or liquids used in electronic cigarettes intended for sale in the duty-free shops, such manufacturers are obliged to conduct inventory of such products in presence of tax authority’s representative as of 01.01.2023 (goods) and submit the following information indicating data on the balance of such products (goods) and their storage location to the central executive body that ensures implementation of tax policy (State Tax Service) within two working days from the day when inventory was completed;
further storage of such remnants of products (goods) by manufacturers is allowed only in places indicated in information on the inventory results, until termination or abolition of the martial law in Ukraine.
In case of detection after 01.10.2023 of production and/or storage (except for inventory balances in storage places about which the State Tax Service was notified), and/or transportation, and/or sale, including by their manufacturers, of tobacco products and/or liquids used in electronic cigarettes, which were produced for sales in the duty-free shops – such products are considered to be unmarked excise tax marks, and responsibility, provided for in Article 17 of the Law № 481 for production, storage, transportation, sale of excisable products without excise tax marks (200 percent of the cost of products (goods), but not less), applies to such business entities in the amount of 17000 UAH).