Moratorium on inspections 2018

You can also read this material in Ukrainian

We suggest starting the year with good news. The Law of Ukraine on the State Budget 2018 has been in force since January 1, and with it a new moratorium on business inspections.

What inspections are prohibited?

The law prohibits conducting scheduled inspections in 2018, all without exception, enterprises and individual entrepreneurs.

To conduct unscheduled inspections there are now six grounds:

1. Complaint of an individual. If the consent of such inspection is given by the State Regulatory Service of Ukraine.

2. Own desire of the enterprise 😊.

3. Court decision.

4. Accident, death of the victim as a result of an accident. If it is connected with activity of the enterprise.

5. An event that has a significant negative impact on people, the environment and the security of the state. So far no one knows what these events are, because the criteria for determining the negative impact must be established by the Cabinet of Ministers of Ukraine.

6. It is necessary to check the implementation of the order issued on the results of the previous inspection.

Who is prohibited from conducting inspections?

In 2017, the moratorium did not apply to a large list of regulatory authorities. So far, the situation has changed dramatically.

From January 1, 2018, the Law prohibits inspections of all bodies covered by the Law №877. We wrote in detail about who this law applies to here.

Such a total ban will act temporarily. The Cabinet of Ministers of Ukraine must establish a list of bodies that will not be subject to the moratorium. It is unknown at this time what he will do after leaving the post. We will inform about changes in addition.

Bodies not covered by Law №877 will continue to conduct inspections on the basis of separate “profile” laws. Such bodies include:

• customs in the implementation of customs control at the border;

• State Export Control Service;

• State Audit Office in monitoring compliance with budget legislation;

• National Bank in the implementation of banking supervision and currency control;

• State Fiscal Service in the implementation of currency control;

• Antimonopoly Committee;

• National Council of Ukraine on Television and Radio Broadcasting;

• state market surveillance authorities.

Results

1. Scheduled inspections are prohibited.

2. Unscheduled inspections only if there are exhaustive grounds.

3. The Cabinet of Ministers will additionally determine the list of bodies that will be allowed to conduct inspections in the normal mode.

4. Bodies not covered by Law №877 continue to carry out inspections on the basis of separate “profile” laws.

On January 23, 2018, the situation changed - the resolution of the Cabinet of Ministers came into force, by which the Government approved the list of bodies to which the moratorium does not apply. Read more in this article: