The government has strengthened localization requirements: what will change for manufacturers.
The government is tightening localization requirements for products
According to inkorr.com: The authorities have taken measures to strengthen requirements for products with confirmed localization. This is necessary to protect Ukrainian manufacturers from imports that are misrepresented as localized. Now, to participate in public procurement, manufacturers must provide more documents confirming that their products contain at least 25% Ukrainian components of value.
This is the second update of localization rules in public procurement, which is conducted to avoid situations where goods are pseudo-localized and presented as Ukrainian products. We want genuine Ukrainian manufacturers to be supported in public procurement.
Among the new requirements for manufacturers is additional documentation, such as tax acts, technological processes, product testing results, as well as confirmation of necessary resources and qualified personnel. The Ministry of Economy has received new powers to check manufacturers' documents and analyze goods included in the localization list.
The government has made requirements for manufacturers and procedures for including goods in the localization list stricter to better protect domestic producers from misleading positioning of imports. Now, evidence of Ukrainian origin for products sold through the Prozorro system must be significantly more convincing.
These changes in legislation create conditions for fairer competition in the market. It is expected that the new requirements will stimulate the development of Ukrainian production and reduce the volumes of counterfeit products being imported. Ukrainian manufacturers will now find it easier to compete for government contracts, which, in turn, supports the country's economy.
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