Distributing a product

Evolution of the sector

Few structures carry out distribution and the follow-up of imports. The distribution sector remains very traditional and fragmented, but the arrival of foreign competitors could widen the range of products and services, contribute to stabilizing prices and stimulate competition. Franchises are growing, but there is a legal vacuum as far as intellectual property is concerned, and barriers to the development of small companies.

The most developed distribution circuit is retail trade. Food shops can either be non-specialized or specialized in a single range of products. There are also department stores especially in Kiev such as the Department Store Ukraine, the Zum which is the equivalent of Printemps in Paris (Selfridge's in London), the department toystore, Dytiachy Syit - Children's World, the large jeweler's Koschtan, and for perfume and cosmetics, Lancôme.

The market share of non-organized retail is increasingly encroached upon.

Market shares

Non-organized retail shops have 43% of the market, local shops control 25%, while supermarkets have approximately 12% market share.

Organizations in the retail sector

Association of Ukrainian Distributors

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies

International economic cooperation

Ukraine is member of WTO since 2008.

Non tariff barriers

The only important barrier to trade and investment in Ukraine is the country's difficulty in transiting from a planned economy to a market economy. Following economic reforms, the country experienced a relative success concerning export and investment.

There are real structural barriers putting a brake on trade and investment in Ukraine : corruption, lack of protection in terms of intellectual or industrial property, lack of foreign exchange, an ill defined or too bureaucratic hierarchy, an inefficient and little developed banking system, law, license and tariff changes... Investment is precisely curbed by the absence of private property and a coherent privatization programme, non convertibility of the country's currency and lack of financial liquidity, change of legislation relating to investment, lack of quality, lack of competitive prices for hiring or purchasing representative offices, poor infrastructures, political instability...

Customs duties and taxes on imports

Average customs duties are between 10 and 15%.

Customs classification

Ukranian customs follow the recommendations of the WTO and apply the Harmonized System.

Import procedures

The import duties to be paid by a foreign importer in Ukraine vary according to the type of product: alcohol, tobacco, motor cars, tires, jewelry and other luxury products. The payment of these duties must be effected in the country's currency. Excise duties are also paid in the local currency and are calculated as follows: for non luxury products, a percentage is applied and for luxury products the excise duty is not calculated on the customs declared value but according to volume, number of units or weight of the import.

Importing samples

The customs' regime regarding samples is strict and only allows this kind of importation on condition that the sample will be re-exported in its entirety to the country of origin or will be destroyed by customs.

For further information

KMU
Ministry of Economy of Ukraine
Ministry of Finance of Ukraine

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Ports

The port of Odessa
The ports of Ukraine
The port of Illitchevsk
The port of Nikolaev
The port of Yuzhny (website in Russian)
Location of the main ports in Ukraine

Airports

Borispil international airport, Kiev
Donetsk international airport
Dniepropetrovsk international airport
Lviv international airport (only in Ukranian)
Odessa international airport

Sea transport organizations

Ministry of Transport and Communications

Air transport organizations

National Civil Aviation Administration (website in Ukrainian)

Road transport organizations

National Road Department

Rail transport organizations

National Railway Administration

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

The last few years, Ukrainian industry benefited from to the rise in production of automobiles (+60%), machines for the mining industry (+34%), and wagons for rail transport (+31%).

Metallurgy and metal processing represent 20% of the country's GDP. Mechanical construction represents 13% of Ukraine's GDP. The agrifood sector represents 17% of Ukraine's GDP (the country has a very strong agricultural potential with lands which are among the most fertile in the world). The chemical and petrochemical industry represents 6.7% of the country's GDP. Ukraine is a big exporter especially of fertilizer.

Business directories

Ukraine Yellow pages

Manufacturers associations of the main industries

Association of Ukrainian Motor Vehicle Manufacturers
Association of oil manufacturers of Ukraine

Trade Agencies and their representations abroad

Ukrainian Chamber of Commerce and Industry

Enterprises federation

Catalogue of leading enterprises in the Ukraine

Standards

National standards organizations

National standards agency

Integration in the international standards network

In 1996, the ISO 9000 standards were adopted as national standards.
The Ukrainian government's decree of 1994 imposed a compulsory certification for all products imported into Ukraine. This decree lays down the list of goods subject to certification and adjusts the certification procedures. The certificates can be produced in two ways: on the one hand, there is an acceptance certificate allowing foreign certification, while, on the other hand there is a certificate of conformity published by a certified Ukrainian agency. This decree says that certificates produced by foreign and competent authorities must be issued by a foreign country which adheres to the same Treaties as Ukraine.
The competent Ukrainian mechanism for certification called the Ukrainian State Committee on Standards, Certification and Metrology - Ukr Standard, in Ukraine, has a network of 93 certification subsidiaries and laboratories over the entire country.

Classification of standards

Classification of Ukrainian standards

Online consultation of standards

Certification organizations

"UKRSEPRO" system.
Certification services.
National Center for standardization, certification and problems of quality.
The State Committee of Ukraine for Technical Regulation and Consumer Policy.

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

The State Department of Intellectual Property. Since 1993, Ukraine has promulgated 5 laws relating to intellectual property rights in order to protect inventions, industrial designs, trademarks, industrial equipment and author's copyright against any fraud. Software and video recordings can obtain exclusive rights in conformity with articles 18 and 19 of the law protecting intellectual property rights in Ukraine. There is not yet any law against transgressions or counterfeiting on trademarks. According to the Ukrainian Patent Office, there are no statistics relating to the piracy of books, video recordings or computer software, although duplicate copies of videos, cassettes or CDs are largely and easily available in the stores and in the streets of big urban conglomerations.
Ukraine is legally committed to protecting intellectual property, but the enforcement of this protection is inadequate. Ukraine is a member of the World Intellectual Property Organization. The country is also a member of the Paris Convention (industrial property) and the Universal Convention for authors' copyright. In 1995, Ukraine adhered to the Berne Convention. Ukraine is also a member of the International Convention for authors' copyright, and of the Madrid Agreement (registration of trademarks) and the Patent Co-operation Treaty.

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property