CONTROL AND SUPERVISION SECTOR
BUSINESS IN UKRAINE
1,974,318
*
Business entities (2015)
*
423
15,203
327,814
1,630,878
Large enterprises
Medium-sized enterprises
Small enterprises
Individual entrepreneurs
The data are based on an expert study of statistical information conducted by the Better Regulation Delivery Office specialists
179,151
*
Business entities, which are subject to licensing
64,038
115,113 71
Legal entities
Large
Individual entrepreneurs
5,809 Medium-sized
46,192 Micro
3,927 *
11,966 Small
a total number of regulations in the control and supervision sector
The data are based on an expert study of statistical information conducted by the Better Regulation Delivery Office specialists
REGULATION STRUCTURE
State regulation includes:
12
56
ways of regulation
regulatory instruments
12 ways of regulation Antimonopoly regulation
State regulation of prices and tariffs
Currency regulation
Limiting the concentration
Price regulation
Foreign exchange regulation
Limiting concerted actions
Tariff regulation
Hryvnia regulation
Insurance (required)
Fiscal regulation
State restrictions (limits, standards)
Insurance of entities
National taxes and fees
Commercial patents
Insurance of objects
Local taxes and fees
Limits
Insurance against risks
Fiscal reports
Mandatory norms and standards
Liability Insurance
Special tax regulations
Ban
Guaranteeing the Access to rights and determin- shared ing the status resources
Regulation of foreign economic activities
Determining the status of (business) entities
Inventory (required)
Export duty
Registration of relations (contracts)
Expert examination (required)
Export quota
Assessment (required)
Import duty
Quotas
Import quota
Sale at auctions
Customs declaration
Conclusion of agreements on the basis of a standard form contract
Import licensing
Other regulatory reports
Import permits
Registration of rights Determination of the object’s status Notarial certificate (required)
Export licensing Export permits
Technical regulation
Restricted market access
State support
Declaration of conformity
Licenses
Special duties
Evidence of conformity
Permits
Countervailing duties
Terms (including urban-planning terms and restrictions)
Certificates
Antidumping duties
Technical regulations
Notifications
Government order
Declarations
Government procurement Investment incentives Tax incentives Subsidies
Rolling Review: SECTOR’S REGULATORY ENVIRONMENT We estimate that there are tens of thousands of regulatory acts that contain hundreds of thousands of regulatory standards, including the ones adopted in the period of the Soviet Union, in force in Ukraine. Regulatory standards are the rules established for businesses by the state. The approval of a new rule as well as any other public policy decision requires analyzing the problem and choosing a way to solve it.
492
We can say that the effective regulation is a situation, when a solution to problems was achieved with minimal costs for businesses and the state.
62 165 The Control and Supervision Sector reviewed 492* acts: 62 Laws 165 Acts of the CMU 262 Acts of CEB 7 Acts of the USSR / Ukrainian SSR
*
Considering the fact that some regulatory acts can approve two or more structural elements (regulations, procedures, typical form, etc.), the total number of acts may be different
262 7
ROLLING REVIEW: REVIEW OF REGULATORY ACTS This is a regulatory (will be conducted annually) assessment of the quality of regulatory acts using a special methodology, which is conducted by the regulator, businesses and BRDO Office experts in a coordinated manner. The assessment process is conducted under the plan published in advance to allow the business to understand exactly what kind of regulatory act is currently analyzed and enable him to take part in this analysis. According to its result, a regulatory act is recommended for keeping, revising or removing.
53
183
24/ 36/ 83
Legality: 53 are illegal Importance: 35% are non-important or partly important Effectiveness: 183 are just relatively effective Corruption risks: 24 with high corruption risks / 36 with middle-corruption risks / 83 with low corruption risks Impact on business: 13 have a high level of corruption risks because of their impact on business
35%
13
EXPERT AND ANALYTICAL ACTIVITIES Conducting the Regulatory Impact Analysis (RIA) For the draft Law of Ukraine “On amendments to certain laws of Ukraine due to streamlining the activities of separate units of domestic and foreign legal entities” For the draft resolution of the Cabinet of Ministers of Ukraine “On approval of the Regulation on a unified state system of electronic registration of timber” For the draft resolution of the Cabinet of Ministers of Ukraine “On amendments to certain resolutions of the Cabinet of Ministers of Ukraine” (regarding special water use)
Preparing the SME-Test Calculating the cost of 5 regulatory requirements for the draft Law of Ukraine “On limited and additional liability companies” Calculating the cost of regulatory requirements for the draft resolution of the Cabinet of Ministers of Ukraine “On approval of the Regulation on a unified state system of electronic registration of timber” Calculating the cost of regulatory requirements for the draft decision of the Kiev City Council “On amendments to the decision of the Kiev City Council #20/7357 dated January 26, 2012 “On approval of the Concept of development of outdoor advertising in Kyiv”
Business cases 3 business cases describing the step by step starting of economic activity were prepared
Education activities in preschool education (pre-school institutions - kindergartens)
Internal passenger transportation by taxi
Catering industry activities
Draft Law of Ukraine “On market access” Development stages GREEN PAPER
WHITE PAPER
DRAFT
Done In process
Instruments of state regulation
Licenses
Permits
Notifications
Certificates
Declarations
LAWMAKING
Adopted The Draft Law of Ukraine “On amendments to certain legislative acts of Ukraine regarding improving the legislation in the sphere of state supervision (control)” #2531a The draft resolution of the Cabinet of Ministers of Ukraine “On approval of the Procedure to submit electronic documents to licensing authorities and issue electronic documents by them via telecommunication systems” Methodological recommendations to develop license provisions for economic activities subject to licensing under the Law of Ukraine “On licensing of economic activities” sent to licensing authorities by the State Regulatory Service of Ukraine to use them when preparing the relevant license provisions
Participation in development The Draft Law of Ukraine “On temporary peculiarities to implement state supervision (control) measures in the sphere of economic activities” #3153 The Draft Law of Ukraine “On amendments to the Law of Ukraine “On main principles of state supervision (control) in the sphere of economic activities” to liberalize the system of state supervision (control) in the sphere of economic activities #2418a
Analysis of regulatory legal acts BRDO Office experts analyzed 90 regulatory legal acts and provided comments and suggestions on them
14
76
Laws
By-laws
9
of them were adopted by government’s resolutions “Certain licensing aspects to construct objects of IV and V categories of difficulty” “On approval of License provisions to conduct business activities on producing highly dangerous chemicals listed by the Cabinet of Ministers of Ukraine” “Certain aspects of licensing business activities related to the cultivation of plants included to the table and the list of narcotic drugs, psychotropic substances and precursors approved by the Cabinet of Ministers of Ukraine, the development, production, manufacture, storage, transportation, purchase, sale (delivery), import to Ukraine, export from Ukraine, use, destruction of narcotic drugs, psychotropic substances and precursors included in this list” “On approval of License provisions to conduct business activities related to hazardous waste management”
“On approval of License provisions to conduct business activities related to medical practice” “On approval of License provisions to conduct business activities related to transportation of passengers, and dangerous cargo and hazardous waste by river and sea” “On approval of License provisions to conduct business activities related to industrial catch of aquatic bioresources outside the jurisdiction of Ukraine” “On certain aspects of licensing business activities related to providing services and performing fire-fighting works” “On approval of License provisions to conduct business activities related to production of medicines, wholesale and retail distribution of medicines and import of medicines (except active pharmaceutical ingredients)”
+38 (044) 332 49 12 | office@brdo.com.ua | www.brdo.com.ua Khoryva St., 55K | Kyiv, 04071, Ukraine SECTOR HEAD Volodymyr Holovatenko | v.holovatenko@brdo.com.ua