The FEU opposes hidden imports
In order for Ukrainian products to be procured in public procurement, the Federation of Employers of Ukraine (FEU) is working on improving the formation of the list of localized goods. Today, an event was organized on this topic to support domestic producers.
The President of the Federation “Ukravtotrans,” Igor Shkirya, emphasizes: “Currently, in order to supply goods to state-owned companies, it is sufficient to have a production localization level of 20%, and to confirm the level of production localization, it is enough for manufacturers to declare themselves by transparently posting information about the level of product localization on the website. In fact, no one verifies the accuracy of this information, and all sellers of special equipment are calling themselves manufacturers. In Ukraine, there are only 2 enterprises engaged in the production of mobile cranes: LLC VCF DZAK (Drohobych Automobile Crane Plant) and KYIV MACHINERY PLANT LLC,” while dozens of companies position themselves legally as mobile crane manufacturers.”
It has become common for a Turkish bus, upon arrival in Ukraine, to transform into a domestic product with a significant degree of localization. Similar stories exist in every segment of goods. Ways to counteract this were discussed with the Member of Parliament Dmytro Kysilevskyi.
In the near future, the introduction of a complaint mechanism from the Ministry of Economy is expected, which will allow manufacturers to challenge cases of dubious localization of production. The adoption of the relevant resolution is planned for the end of the current month.
FEU also actively promotes the idea of creating a register of Ukrainian manufacturers of industrial products, which will allow distinguishing our manufacturer from others.
“Some companies with Chinese-made cranes installed on special chassis, such as LLC “Yuromash,” LLC “Universal Manageri,” LLC “Ukrspetstekhinvest,” LLC “Spectechmarket,” LLC “Alianda and K,” LLC “EURO-TRACK,” LLC “Techkomplekt,” and LLC “Logistic Machinery,” declared a level of production localization above 15% in 2023 and 20% in the current year, which cannot correspond to reality, as these cranes are 100% made in China. All other companies, such as LLC VK “Avtostransportnik,” LLC “Ukrainian Machine-Building Plant Modus,” PE “Manufacturing-Commercial Enterprise Alfatex,” LLC “AKU-AVTO,” LLC “Ukravtokomplekt Ltd,” actually install Chinese-made crane installations on European and Chinese chassis, and the level of localization of their production also significantly falls short of the required 20%,” emphasized Igor Shkirya.
The problem of the appearance of conformity certificates, which allow foreign products to be considered local, was also discussed at the meeting. It was noted that active communication with the relevant authorities is needed to combat this phenomenon.
Igor Shkirya proposed practical steps to protect Ukrainian manufacturers: “I consider it necessary to conduct an audit of manufacturers to verify the accuracy of the information declared on PROZORRO and establish the actual level of production localization of mobile cranes, buses, and other special equipment. And I also believe it is extremely necessary to develop a set of measures aimed at developing domestic production and protecting the real Ukrainian manufacturer.”
Finally, the issue of compliance with the level of localization in cases where Ukrainian manufacturers use imported components was discussed. The solution to this problem requires clarification of regulatory acts.