Antimonopoly watchdog analyzes competition in Ukraine`s duty-free trade market

Wednesday, July 6, 2016 - 14:00 (EEST) Section: Latest news

The Antimonopoly Committee of Ukraine (ACU) is analyzing the existing procedures for obtaining a permit to open and run duty-free stores, the situation with the access to the market of duty-free trade, as well as sales procedures applied by this type of stores, the ACU press service reported.
The ACU until August 4 will be conducting a survey of market participants, experts, and stakeholders to assess competitiveness in the duty-free trade sector, according to the report.
”As part of the survey, the Committee will assemble all proposals regarding possible measures, including changes of regulations governing the activity in this market sector, the introduction of which is deemed necessary to eliminate factors curbing the competition in the market,” a statement reads.
According to ACU`s authorized representative Agia Zagrebelskaya, the consideration of the matter started from the review of a single complaint, which has later developed into a survey of the whole duty-free market.
”There were a lot of complaints, media reports and criticism regarding the existing procedures for accessing by economic entities of the market of duty-free trade at airports and on board the aircraft. The reports highlighted violations and corruption, market monopolization and discrimination of market participants, outdated and non-transparent procedures, as well as many other issues,” Zagrebelskaya wrote on Facebook.
As UNIAN reported earlier, on November 24, 2015 the Verkhovna Rada rejected a draft law authorizing duty-free shopping not only in the departure areas, but also at the arrival areas. According to current legislation, duty-free stores can only be located in the zones of departure.
The Finance Ministry argued that the adoption of the draft bill will inevitably lead to the creation of various tax evasion schemes with the residents of Ukraine purchasing large amounts of tax-free products. It is also believed that the bill will contribute to the reduction of customs payments to the state budget.
The arrival duty-free outlets operate in more than sixty countries around the world, including the U.S., Canada, Australia, United Arab Emirates, South Korea, Iraq, South Africa, Azerbaijan, Turkey, as well as in several European countries.