Penalty for violation of currency control

Exchange control in Ukraine is an important tool for managing financial flows and ensuring the stability of the national currency. Compliance with currency legislation is mandatory for all economic entities. Penalties are provided for violation of these rules. However, there are opportunities to avoid fines and simplify currency control procedures, in particular, through a certificate from the Chamber of Commerce.

The basis of currency control in Ukraine is a number of laws and regulations, the most important of which are the Law of Ukraine "On Currency Regulation and Currency Control" (hereinafter - the Law), the Resolution of the National Bank of Ukraine "On Approving the Procedure for Currency Control" and others. These normative acts determine the rules for currency transactions and establish responsibility for their violation.

In the context of currency legislation of Ukraine, a violation may include not only non-compliance with settlement deadlines for export and import of goods, as well as other norms established by law. In accordance with the provisions of Part 5 of Art. 13 of the Law, such violations may result in the charging of a penalty for each day of delay in the amount of 0.3% of the amount of unpaid funds under the contract or the value of the goods not received. These circumstances create additional financial pressure on economic entities and may affect their financial stability in a negative way.

However, there are tools that help avoid fines and simplify currency control procedures. One of them is a certificate of the Chamber of Commerce and Industry. Obtaining this certificate can be especially important when the settlement deadlines are violated due to force majeure.

At the same time, force majeure circumstances, such as natural disasters, war, political changes, etc., may be unpredictable and impossible to avoid. In such cases, the TPP certificate can become a document that confirms the exception from liability for violations of currency legislation due to the impossibility of timely settlement due to objective circumstances.

Obtaining a TPP certificate can help business entities prove they are not guilty of violating currency rules and reduce the risk of fines. At the same time, it can also provide additional protection in judicial or administrative appeal procedures in case of rebuttal of fines in violation of currency legislation.

Please note that in case of imposition of fines, business entities have the right to appeal the decision of the tax service. The appeal procedure involves submitting a complaint to the DPS of Ukraine, or conducting a court appeal against such a decision.

To avoid fines and to solve the issue of currency control professionally and efficiently, contact our law firm. Our lawyers will provide you with the necessary support and advice on all issues related to currency control and dispute resolution.