LeGran.TT advises on late return of foreign currency earnings

Late payment of contractual price is one of the main risks frequently faced by Ukrainian exporters. Despite the fact that in case of late payment the buyer may be applied with penalties stipulated by the contract, the seller may incur substantial losses due to the breach of terms for receipt of foreign exchange earnings.

As is known, in accordance with Art. 1 of the Law of Ukraine “On the order of payments in foreign currency”, as well as in accordance with the resolution of Board of National Bank of Ukraine № 863 dd. 12.04.2015, the period of receipt of revenue in foreign currency shall not exceed 90 days from the date of customs clearance of exported goods. This provision is mandatory and cannot be changed by the contract. Art. 4 of the Law provides 0.3 percent penalty of uncollected amount for each day of delay. Given the fact that the contractual price often exceeds hundreds of thousands and sometimes millions of dollars, it is easy to calculate the amount of potential losses arising from the sanction.

Our lawyers are ready to advise you how to prevent the accrual of penalties in cases where the payment deadline has not yet passed, and by using the available legal mechanisms that exclude the Ukrainian exporter’s responsibility, even in the case of missing the term of receipt of foreign exchange earnings. As a result, companies save significant sums, and may also minimize the risks when entering into contracts with non-residents.

If your company faced with a similar problem, we will help you find the best solution. We are ready to conduct a preliminary analysis of the documents, as well as to offer you the advantageous variants of cooperation.