How to export foreign currency from Ukraine and to avoid confiscation

Within ten months of 2017 the Ukrainian customs officers for violation of the rules exportation and importation of currency into the country withdrew money totaling almost 58 million UAH. Was filed 365 cases of violation of the rules to move money across the border. This is stated in the reply of the State fiscal service on request Delo.UA.

By law a citizen can carry across the border without declaring the currency equivalent of up to 10 thousand euros ($11.7 thousand). If the amount of funds exceeds this limit, the Ukrainians must declare all currency, provide the documents confirming legality of currency (Bank statement, receipts of the exchange).

For individuals-non-residents there are slightly different rules. To import to Ukraine currency more than 10 thousand Euro, citizens of other countries need just to declare in writing to. But take out the non-residents can only the amount that exceeds that which they imported into Ukraine. Most of the violators in the airport Boryspil

Violations reported in the GFS, are related attempts to move across the border currency more than 10 thousand Euro under the simplified procedure — without a Declaration and the submission of additional documents.

According to tax, illegal movement of currency is typical for airports.

“199 cases worth over UAH 31 million or 54% of all cases of violations (in January-October 2017 — Ed.) discovered in the area of the Kiev customs at the airport “Borispol” — said the fiscal service on request Delo.UA.

The SFS also added that most of the violations (57% of all cases to the amount of over UAH 31 million) accounted for the import of currency into the country. Accordingly, 43% of the cases for the sum almost 27 million UAH — attempt to export foreign currency from Ukraine. A fine of 1700 UAH and confiscation

For the avoidance of filling of the customs Declaration and the attempted cross-border transportation of currency more than 10 thousand euros natural persons bear administrative responsibility in the form of a fine, says the head of international arbitration practice and partner, Eterna Law Eugene Blinov.

According to the Customs code, the penalty is one hundred non-taxable minimum (1?7 thousand UAH). Also the offender confiscated currency, which exceeds 10 million euros.

“Undeclared money subject to seizure in all cases. Although the question of forfeiture decided in court after evaluating the circumstances of the case,” adds Eugene Blinov.

The lawyer recommends that you do not hide the fact of transportation of currency in excess of the norm at the oral request of the officers.

During the subsequent filling of the customs Declaration and other documents mentioned above can be avoided.

“However, there were cases in practice when the passenger was forced to pay a fine just because of the fact that he didn’t tell you where it is filled Declaration,” — said Blinov. In some cases, the money is not confiscated

Litigation, however, shows that not in each case, the currency that individuals trying to move across the border with violations of the law are subject to confiscation. And violators often manage to get off “easy fright”, a fine of 1700 UAH, and the cost of a lawyer and a small court fee.

“The passenger enquired about the availability of cash to which he replied that he has up to 10 thousand euros. Passengers were invited into the office, where he offered to produce all the cash. They were given cash in the amount of 18 thousand euros, which was in the backpack of black color” — describes a typical situation of violation of rules of transportation of currency.

Among the decisions of the court (about 30), who analyzed Delo.UA there were only several cases of confiscation of currency more than 10 thousand euros. Basically, the court declines to confiscate the currency for two reasons.

1) In many cases the court has agreed with arguments of the infringer was decided that the recovery of funds “imposes on the offender’s individual excessive burden”.

“The court rightly took into account the presence of documents confirming legality of an origin of currency: seized funds represent salary to the individuals. The funds required to ensure it is everyday living and treatment (in other cases specified training — Ed.). Under the circumstances, the court came to the conclusion that the confiscation of the funds in the amount of $16,44 thousand can not be applied”, — referred to in the decision of the court of 21 November 2017 on the violation of the citizen of Israel of the rules of import of currency in Ukraine.

2) Another reason why they leave the money to, the currency belongs to another person. For example, Liuboml district, Volyn region, considering the claim against the citizen of Latvia, came to the conclusion that he was bringing into the country of 10 thousand euros of their funds and 9.3 thousand euros that belonged to the Latvian company “amber Art D”. The firm allegedly gave the money of Lutsk charitable Fund “Adonai”.

“According to the court, under specified circumstances, the confiscation of the currency will not be commensurate with the damage that could be caused to the state and public interests of the offence. The facts of the case together with proven reckless form of guilt indicate that the grave consequences for the state and public interests do not come”, — concluded the court.

In addition, there were cases when the court fined only RS 1700 without confiscation, as customs does not confiscate the funds. Or the judge denied the confiscation, because the attorney missed the deadlines. According to the law, apply the administrative penalties for violation of customs rules not later than six months from the date of the offense.