A distance selling operator can build logistics for entering the market of Ukraine in accordance with one of two schemes: consignment or direct import.
Consignment is…
...international services of transfer, customs clearance, and mailing of postal items and small parcels by the sender to one or a number of addresses. Consignment is ideal for distance selling companies performing regular mailing from one country to another or to a number of countries within В2С and/or В2В segments. Upon application of the consignment scheme for parcels up to 300 EURO in Ukraine, customs duties and VAT are not paid.
Consignment services include:
- Various delivery solutions;
- International logistics services;
- В2С delivery of small parcels and packages;
- Direct mail (catalogues, personalized mailing);
- Payment services upon delivery;
- Customs clearance;
- International money transfers;
- Tracking.
For European distance selling companies, which intend to enter the Ukrainian market in accordance with the consignment scheme, two options of logistic chain exist: logistics via Ukrposhta, the national postal operator, and Ukrainian-Canadian company Rosan, the first private postal operator.
Logistic chains of both operators are about the same. The only difference is that Rosan delivers all postal items to the recipient’s door, while the final destination for Ukrposhta is its own branch.
Whatever way of delivery is chosen by a distance selling company, Ukrainian logistics operators guarantee high-quality professional services for their clients.
CONSIGNMENT: logistic chain
- The sender forms international postal items and delivers them to the international mail center in the EU, for the purpose of customs clearance.
- The postal operator delivers parcels to its/partner’s international mail center in Ukraine, for the purpose of customs clearance in Ukraine (no customs duties and VAT are paid!)
- The parcels are delivered to corresponding post offices or directly to their recipients.
ADVANTAGES: no certification needed (exceptions: kid products, cosmetics and personal hygiene products), free from customs duties and VAT.
DISADVANTAGES: longer terms of delivery to the end user.
DIRECT IMPORT: logistic chain
- The company chooses a contractor in Ukraine for formation of parcels, sends its products to the contractor in the volume, sufficient for servicing orders within nearest 2-3 months. It forms parcels independently and performs goods logistics in Ukraine.
- The Ukrainian partner is responsible for customs clearance, marking and sending parcels via a postal operator in Ukraine.
ADVANTAGES: quick delivery over the territory of Ukraine.
DISADVANTAGES: certification is required for every group of products, as well as permission for import of goods, payment of customs duties and VAT.
Hesitate to choose the scheme for entering the Ukrainian market? Consult the experts!