Tax and accounting insights for Ukraine
27.05.24
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The Government has strengthened the protection of Ukrainian producers from unfair competition in public procurement

The Cabinet of Ministers of Ukraine has amended the Procedure for Confirming the Degree of Localization of Production of Goods in order to protect Ukrainian producers from unfair competition in public procurement. The relevant Resolution was approved at a Government meeting on May 24, 2024.

"This year, the Government started implementing the Made in Ukraine program to support local businesses. It contains many components - grants, affordable loans and other mechanisms to stimulate demand for Ukrainian goods. One of these incentives is the requirement for localization of certain goods and services in public procurement. This year, the local content in the share of the cost of goods, their components, services and works subject to localization is 20%.

In order to protect bona fide Ukrainian producers from unfair competition in public procurement, the Government has introduced requirements for them to have additional documents confirming the degree of localization - a certificate or a certificate. We have also increased the liability of producers in case of non-compliance with the requirements of the documents they provide. This should strengthen the protection of Ukrainian producers who create new jobs, pay taxes and contribute to the recovery of the Ukrainian economy," said Deputy Minister of Economy of Ukraine Nadiia Bihun.

The Government Resolution also empowered the commission for reviewing the operation of the electronic procurement system to consider complaints regarding non-compliance of the submitted documents with the established requirements.

CMU

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