Posted by Zee Kleshchar on Nov 24, 2011 in Logistics Sector, News & Updates, Policy Wins & Progresses | 0 comments
The current session of the sixth Ukrainian Parliament has been exceptionally productive: PSA Law for Fuel and Energy sector, amendments to Tax Code, Law on State Land Cadastre, new Customs Code of Ukraine and many other crucially important legislative initiatives have passed which are needed for the proper functioning of various sectors of Ukraine’s economy. Among the recently adopted pieces of legislation special attention should be drawn to the Law of Ukraine “On Sea Ports” due to its importance for Ukrainian infrastructure development.
After 4 years of discussions and considerations the Ukrainian Parliament finally adopted the Draft Law “On Sea Ports” on November 3, 2011. A total of 266 Peoples’ Deputies out of 332 registered in the Parliament’s session hall voted for its adoption in the second reading as well as in general.
Traditionally the creation of a legislative framework that would stimulate infrastructure development that is necessary to create a more competitive Ukrainian economy has not been a priority for lawmakers. Therefore, the adoption of such a specific and comprehensive piece of legislation should be considered as a step in the right direction even though the law may not fulfill all expectations of the business community. By providing a special legislative basis for direct regulation of sea ports activities the law “On Sea Ports” becomes a pioneer in infrastructure development regulations which hopefully will be supported by other legislative and regulatory initiatives in the future to further improve infrastructure and attract more investments into the country’s economy.
Starting in May 2011 the American Chamber of Commerce’s Working Group on Sea Ports Development has been actively working on recommendations for this piece of legislation stressing the importance of producing a special and direct framework for sea ports regulation that combines state strategic interests as well as interests of private investors operating in the sphere of sea transportation. The business community wanted this law to be specific, stipulate amendments to other relevant current legislation, clearly define the “sea port” concept, legalize the activity of entities operating on the territory of sea ports and regulate port duties.
During the Parliament’s Plenary Meeting and discussion on November 3the law initiators claimed that if adopted the law would define the legal and economic principles of sea ports’ creation and development as well as organizing operations at ports. At the same time the law is going to regulate the work of government executive institutions, state and maritime administrations at port, owners of marine terminals, port operators and consumers of their services in managing operations at ports, as well as companies that provide specialized services at ports and marine terminals. By amending the Merchant Shipping Code of Ukraine, Land and Water Codes of Ukraine, Laws of Ukraine “On Payment for Land” and “On Value Added Tax” the Law should clarify the legislative base making the sea ports functioning more transparent and bringing it in accordance with EU and international practices which is always a positive thing.
At this moment the Law is waiting for President’s of Ukraine signature and we as business community believe that by signing it the President will show his support and willingness to facilitate the further improvements in the infrastructure of the country which is critical to improving the performance of the economy.