30% of defence manufacturers have already registered with the export control authority: survey

Around 30% of Ukrainian manufacturers of weapons and military equipment have already registered with the State Export Control Service, taking the first practical step towards entering international markets. These are the results of a survey conducted by the Ukrainian Council of Defence Industry (UCDI) among its members. The data were presented at a closed meeting dedicated to the launch of the special legal regime Defence City.

The association notes that Defence City residents are entitled to carry out exports without obtaining special authorisation from the Cabinet of Ministers — a procedure that previously took six to twelve months. The simplified export procedure is предусмотрена by a separate regulation approved by the government at the beginning of the year.

At the same time, Defence City residency does not отменяє export control requirements. Registration with the service and the receipt of permits remain mandatory.

During the first month of operation of the Export Support Office established by the UCDI, defence industry companies received more than 20 individual consultations.

To obtain Defence City resident status, a company must complete an internal audit and submit a compliance report with annual financial statements to the Ministry of Defence. At least 75% of qualifying income must come from defence-related activities, or 50% in the case of aircraft manufacturing companies.

The Defence City legal regime for defence manufacturers provides for tax incentives, including exemption from corporate income tax when profits are reinvested, simplified customs and currency procedures, and support for relocating production to safer regions. As the regime has only just begun operating, the Ukrainian Council of Defence Industry is collecting feedback from manufacturers and passing identified issues to state authorities for further consideration.