How to sell goods to Europe through Ukrposhta: legal, tax and financial aspects

Selling goods to Europe through the postal operator Ukrposhta can be a profitable solution for many entrepreneurs due to flexible tariffs and simplified customs clearance procedures. In addition, Ukrposhta offers additional convenient services for business.

How to export goods using Ukrposhta?

Before starting to sell on international markets, entrepreneurs should familiarize themselves with the rules of trade in the EU or the US, the customs laws of the countries, and the list of goods prohibited for import. Ukrposhta's website has a rubric that allows you to check whether a product is allowed to be imported in the country of destination.

The process of selling goods to Europe includes several stages that will help optimize logistics and minimize costs.

1. Registration of a shipment

First of all, you need to arrange the shipment online on the Ukrposhta website or at the nearest branch. In doing so, you need to provide accurate information about the contents of the parcel, its weight and cost, as well as full information about the recipient.

2. Parcel clearance for export

When exporting goods to the European Union, it is important to take into account the customs regulations of the recipient country. Each country sets its own customs limit, depending on the category and value of the exported goods.

Thus, for shipments up to €150 to the EU, no customs duties and taxes are charged and no customs clearance is required. Parcels worth more than €150 are subject to customs duties and taxes by the recipient and full customs clearance by the sender. The category of "gifts" with a value of up to €45 is not subject to customs duties.

How do I process parcels up to €150?

In order to process a parcel worth up to €150, the sender needs to provide the following documents before sending it:

• postal customs declaration CN23 (for international parcels and EMS shipments) — 3 copies or CN22 (for small packages, parcels) — 1 copy;

• a sales or cashier's receipt or an invoice drawn up when selling the goods. If you are sending commercial samples, you should attach a proforma invoice.

The necessary forms and sample documents are available on the Ukrposhta website, which can be filled out in advance, as well as at post offices.

How are shipments over €150 processed?

International shipments worth more than €150 are subject to customs clearance and a cargo declaration.

Before sending goods to the sender, you need to:

1. Determine the code of the goods according to the Ukrainian Classification of Goods for Foreign Economic Activity and calculate the duty, if applicable.

2. Obtain an accreditation card at the customs of a business entity (sole proprietorship or LLC).

3. Create a cargo customs declaration online in a special program or order this service from a customs broker.

Ukrposhta allows entrepreneurs to fill out a customs declaration online — in their personal account, through a mobile application or a special ARI system, as well as at their post offices (the service for entering declaration data into the electronic system costs $1 per parcel). 

To obtain an accreditation card, a sole proprietorship must submit:

• an extract from the state register,

• a certificate of opening an account with a banking institution,

• a copy of the passport of the person who will work with customs officers (usually the entrepreneur himself),

• your contact information (phone, email).

The entrepreneur must also fill out an accreditation card after receiving it from the customs authority. 

Ukrposhta provides free consultations on accreditation and can fill out the application for you, but the responsibility for the correct declaration lies with the sender.

Registration of export of certain types of goods

When filling out a customs declaration, additional documents may be required for certain goods:

• gemological conclusion (for precious stones and jewelry),

• a quality certificate (for example, for auto parts),

• phytosanitary certificate (for plants and fruits).

Additional documents for customs clearance of specific goods are also available on the Ukrposhta website.

3. Cost of Ukrposhta's logistics services

The cost of delivery depends on the weight, size of the parcel, the country of destination, and the chosen tariff (for example, express delivery will be more expensive). Ukrposhta offers a calculator on its website that will help you accurately calculate the cost of your shipment.

The operator delivers goods to more than 230 countries. In addition, Ukrposhta is a member of the Universal Postal Union and cooperates with 192 national postal operators around the world.

4. Additional services for business

Ukrposhta provides additional solutions for international trade aimed at simplifying its conduct:

✓shipment tracking: online monitoring of the status of parcels,

✓shipment insurance: protection of the value of goods in case of damage or loss,

✓fulfillment: comprehensive storage, picking, and delivery services,

✓electronic declaration: simplification of the customs clearance process through integration with the electronic customs system,

✓forwarding shipments in other countries,

✓return of documents: a service for receiving signed documents from the recipient,

✓loyalty program: a cumulative system of discounts for regular customers, etc.

5. Preparing for shipment

Before sending the goods, you must properly prepare the parcel: pack the goods to prevent damage during transportation and provide all the necessary documentation.

6. Accepting payments from recipients

After opening a bank account, an entrepreneur is automatically registered with the tax authorities. It is important to observe tax discipline in payments received from abroad. 

Currently, Ukrainian law allows an entrepreneur registered in Ukraine to open a business account in another country. It is important that the income for goods sold abroad is credited to the entrepreneur's account. 

There are several ways to receive payments from foreign buyers to an entrepreneur's account:

• via SWIFT transfer against an invoice,

• transfer via payment services.

Some foreign marketplaces, such as Etsy, allow you to create an invoice directly in your personal account. In other cases, sample invoices are provided to customers by banks or partner services. 

If you accept payments via Internet acquiring, the funds will be credited directly to your account, which is built into the acquirer's payment module. Money can be credited in foreign currency or in hryvnia, depending on the service.

7. Final steps

After sending a parcel via Ukrposhta, it is important to track its status and keep in touch with the recipient to confirm delivery. In case of any questions or problems with customs or delivery, Ukrposhta provides support and advice.

Using Ukrposhta services to export goods to Europe, you get access to a reliable logistics network with a variety of services that will help your business grow and develop in the international market.