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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


Control and supervision sector report-2016 (Eng)