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Ukraine proposes to cancel benefits for importing components for weapons production to support domestic manufacturers

Two associations of private arms manufacturers — IRON Cluster and Technological Forces of Ukraine — called for amendments to the legislation and the abolition of privileges for the import of those weapons components for which Ukrainian manufacturers already have alternatives.

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Ukraine proposes to cancel benefits for importing components for weapons production to support domestic manufacturers

Two associations of private arms manufacturers — IRON Cluster and Technological Forces of Ukraine — called for amendments to the legislation and the abolition of privileges for the import of those weapons components for which Ukrainian manufacturers already have alternatives.

The associations' statement explains that they are talking about thermal imaging cameras, electric motors, propellers, batteries, video transmitters, antennas, radio control systems, flight controllers, initiation boards, cables and other components.

In 2023, the government simplified the import of components for military equipment, making them available without permission from the State Export Control Service. The decision covered the import of components specifically designed or modified for military use.

Subsequently, the State Customs Service of Ukraine provided detailed answers to the most frequently asked questions regarding customs clearance of UAVs and their parts, related to the need to obtain permits from the State Export Control Service of Ukraine for the import of military and dual-use goods.

«The current system of applying benefits in the defense industry no longer takes into account the capabilities of the local market, as it did at the beginning of a full-scale war. TSU and IRON together include almost 50 component manufacturers, who today face unequal market conditions,» said Anastasia Mishkina, executive director of Technological Forces of Ukraine.

According to her, the changes that IRON Cluster and TSU have developed are aimed at stimulating the development of local production of components. This will reduce dependence on foreign suppliers and contribute to faster adaptation of technologies to the requirements of the front. The organizations propose a phased review of privileges for the import of certain goods, which should take place while maintaining a balance between the needs of the defense industry and the development of domestic production.

«Ukraine can be a component base not only for itself, but also for Europe, which has strategic long-term rearmament plans. Supporting local component manufacturers should be our priority, but changes in tax conditions should be predictable for final manufacturers, because uninterrupted supply to the front and provision of our military with the necessary means depend on this,» says Yuriy Lomikovsky, co-founder and head of the GR direction of the IRON cluster.

The statement of the organizations emphasizes that they support the preservation of the preferential regime for components used for defense needs and that have no production analogues in Ukraine.

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