Ukraine: Adopted law restricting powers of Market Surveillance Authorities

As of 26 March 2020, the powers of the Market Surveillance Authorities of Ukraine are to be significantly restricted when it comes to the control and supervision of business entities (including product manufacturers).

The Verkhovna Rada adopted and the President signed the "On Amendments to Certain Legislative Acts of Ukraine Regarding Reduction of Pressure on Business by Market Surveillance Bodies".

Law of 12.12.2019 No. 367-IX amended a number of regulatory instruments with the aim to reduce pressure on businesses from the Ukrainian enforcement and supervisory authorities, such as Market Surveillance Authorities.

In particular, the amendments remove the possibility of dual supervision over certain types of products and unify the types of inspections of non-food products. The amendments also set out clear and transparent requirements for market surveillance inspectors and inspectors of economic entities regarding the list and terms of submission of documents during each inspection.

According to the Law, the authorities can only perform check ups of manufacturers with the aim to verify properties of a particular product if there are documented grounds for believing that this product is dangerous, presents a risk and / or does not meet certain requirements due to the actions or omissions of the manufacturer.

When carrying out inspections of products of a certain type, category and / or group, the inspectors are prohibited to inspect products of another type, category and / or group.

The duration of inspection aimed at checking product characteristics may not exceed four working days if performed at the distributor of these products, and five working days if performed at the premises of the manufacturer of such products.

The new law also establishes a clear deadline for sending a business entity a decision that is imposing a fine as 16 days after the inspection.

The Market Surveillance Authorities is no longer able to control and supervise the following: nuclear installations, installations used for the management of radioactive waste, nuclear materials, radioactive waste, other sources of ionizing radiation; objects of construction defined by the Law "On Regulation of Urban Planning Activity"; precious metals, precious stones, precious stones of organogenic formation and semiprecious stones, articles made of precious stones (jewellery and household) and materials containing them.

In addition, the imposition of fines based on the principle of “from - to" (the so-called "fork of penalties") has been abolished.

Law of 12/12/2019 N 367-IX "On Amendments to Some Legislative Acts of Ukraine Regarding Reduction of Pressure on Business by Market Surveillance Authorities"