DOU explained what Ukrainian manufacturers of weapons and drones must do to legally export their products abroad, and how the state will collect export duties on such contracts.
DOU explained what Ukrainian manufacturers of weapons and drones must do to legally export their products abroad, and how the state will collect export duties on such contracts.
The algorithm of approvals and duties is discussed in the DOU material. The first mandatory step will be to prove that the products are not critically needed by the Armed Forces of Ukraine. If the manufacturer has excess capacity that is not covered by state orders, he submits an application to the State Export Control Service.
After that, the DSEC launches an interdepartmental check: the Ministry of Defense must confirm that this particular product is not currently included in the priority needs of the army. Then the issue moves to the level of the Interdepartmental Commission for Military-Technical Cooperation, where it is considered with the involvement of representatives of all the Defense Forces. The final stage is the approval of the decision at the level of the structure under the NSDC, which issues the final export permit.
By default, such a decision is taken within 90 days. However, residents of the special legal regime of Defence City have a simplified route: they are promised a «single window» model, where all permits, licenses and approvals are processed centrally. In this case, a permit can be obtained in less than two weeks if the company meets the requirements of the regime.
The next block of instructions concerns how to export after obtaining a permit. The manufacturer can choose to work through a state or private special exporter with full support of agreements, sign direct contracts (in particular, as a resident of Defence City) or create joint ventures with foreign partners within the framework of the Build with Ukraine program. Separately, the government can issue a one-time permit for one batch of goods for a specific customer.
Next, companies need to consider the tax component. Ukraine is introducing differentiated export duties: expensive and unique systems such as naval drones will be taxed at a higher rate, while more mass-produced and less-marginal products, such as armored vehicles, will have a lower duty. The funds from these duties will go to a special fund for the purchase of weapons for the Defense Forces. Ihor Fedirko from the Council of Gunsmiths gives an indicative benchmark: the profit from the sale of one naval drone can finance the purchase of approximately 50 FPV drones for the front, so exports in this model should work as an amplifier, not as competition for domestic needs.
Previously, dev.ua wrote about how the founder and chief designer of Fire Point, Denis Shtilerman, assessed the prospects for supplying Ukrainian weapons to foreign markets.
