Customs incentives for industrial park participants: 2026 guide
Customs incentives for industrial park participants allow companies to save a significant amount of working capital at the launch or modernisation stage. This is achieved by exemption from import duty and import VAT when bringing in new equipment, which reduces capital expenditure and speeds up the payback of investment projects.
Subjects and objects of customs incentives
- Status of the subject. Only a participant of an industrial park included in the Register of Industrial Parks that carries out its activities exclusively within the park.
- Permitted activities (NACE): manufacturing (sections 10–33); waste recovery (section 38); research and development (section 72).
- Subject of import: new equipment and components for it.
- Requirements for the equipment: it must be new (not previously used) and manufactured no earlier than 3 years before the date of import.
Conditions and restrictions
- Targeted use period — 5 years from the date the equipment is brought into the customs territory of Ukraine.
- Localisation — the equipment may be used exclusively within the industrial park territory.
- Strict prohibitions during the 5 years: alienation — it is prohibited to sell, donate or transfer ownership; transfer for use — it is prohibited to lease, provide under a financial lease or lend the equipment to third parties, including other participants of the same park.
- Consequences of a breach: early loss of participant status or breach of the conditions obliges the company to pay the full amount of unpaid customs payments and a penalty.
How to use the incentives
- Customs clearance. When completing the customs declaration, a special exemption code must be stated for import duty and value added tax.
- Recognition on the balance sheet. The participant must record the imported goods on its balance sheet within 20 business days from the date customs clearance is completed.
- Notification of the controlling authorities about the completion of customs clearance and recognition — by submitting a report to the Ministry of Economy, the territorial body of the State Tax Service at the tax address and the customs authority at the place of clearance.
How to report
- Report on recognition (annex) — once, within 20 business days from the date of customs clearance, to the Ministry of Economy, the territorial body of the State Tax Service at the tax address and the territorial body of the State Customs Service at the place of clearance.
- Report on targeted use (annex 2) — quarterly, by the 25th day of the month following the reporting quarter, for 5 years. If several goods were imported, a separate report is submitted for each of them.
- Form of submission — electronically, signed with a qualified electronic signature.
The reporting procedure is set by Resolution of the CMU No. 997 of 07.09.2022.
What is not covered by the incentives
- Goods from the aggressor state — the incentives do not apply to goods originating from a state recognised as an occupier or aggressor, or imported from its territory (or from occupied territories).
- Used equipment — equipment that has been in use, as well as equipment manufactured more than 3 years before the date of import.
- Raw materials and supplies — the incentive applies only to equipment and components for it; raw materials, semi-finished products and consumables are taxed on general terms.
- Non-eligible areas — equipment for the production of excisable goods (except for the permitted exceptions).
Common mistakes
- Leasing out — providing the incentivised equipment for lease, sublease or free use to third parties, including other participants of the same park.
- Use outside the park — physically moving the equipment to other production sites or warehouses outside the industrial park territory.
- Missed reporting deadlines — failure to submit the report on recognition within 20 business days.
- Equipment age mismatch — importing equipment manufactured more than 3 years before it crosses the border, even if it has never been used.
Control and liability
- Grounds: alienation, transfer for lease or use to third parties, use of the equipment for purposes other than intended, as well as early loss of industrial park participant status (earlier than after 5 years).
- Financial consequences: the obligation to pay the amounts of import duty and VAT that were not paid at import.
- Penalties: a penalty is additionally charged on the amount of the tax debt for the period from the day of import until the day of actual payment (Article 197.281 of the Tax Code and Article 287 of the Customs Code).
Useful links
Prepared on the basis of the guide for industrial park participants “Customs incentives”, following the Tax Code and the Customs Code of Ukraine.